Taxes & Policy Archives - Page 5 of 21

There’s no IRS time limit on reimbursing yourself from an HSA — pay today’s medical bill in cash, let the account grow tax-free for 20 years, then cash the receipt

Warren Cohen6 days ago6 days ago019 mins

A $250 urgent care copay in June 2026 can become $968 two decades from now, without owing a cent in taxes. The trick is not a loophole or a gray area. It is a feature of health savings accounts that has been written into federal law since 2003, confirmed repeatedly by IRS guidance, and used…

The IRS may owe you a refund for penalties paid between 2020 and 2023 — you have 41 days left before the July 10 deadline

Warren Cohen6 days ago6 days ago012 mins

Millions of Americans paid IRS penalties during the pandemic for filing taxes late or paying late. A federal court ruling now says many of those penalties should never have been assessed, and the money should be returned. But there is a hard deadline to claim it: July 10, 2026. As of early June 2026, that…

a man and a child playing with blocks on the floor

The OBBBA permanently set the Child Tax Credit at $2,200 per qualifying child under 17 — $1,700 of it refundable for working families with little or no federal tax liability

David Keller6 days ago6 days ago014 mins

A single parent earning $20,000 a year and raising two children will see roughly $2,625 in refundable Child Tax Credit payments when filing a 2025 return. That money arrives as a direct deposit or paper check even if the parent owes zero federal income tax. The scenario became possible under permanent law on July 4,…

Mature business woman working at desk in home office using laptop

The estimated tax safe harbor demands 110% of last year’s tax for AGI over $150,000 — pay that and no underpayment penalty hits, no matter how big the final tax

David Keller6 days ago6 days ago014 mins

A taxpayer whose 2025 return showed $80,000 in total federal tax can make the IRS underpayment penalty vanish for 2026 by doing one thing: paying at least $88,000 through withholding and estimated payments over the course of the year. If the actual 2026 tax bill lands at $200,000, the $112,000 shortfall triggers no penalty at…

The 1099-MISC and 1099-NEC reporting thresholds just doubled to $2,000 for 2026 — gig workers earning less than $2,000 from a single payer won’t get a form at all

David Keller6 days ago6 days ago013 mins

Congress has doubled the reporting threshold for 1099-MISC and 1099-NEC forms from $600 to $2,000, and the change is already law. Starting with payments made during the 2026 calendar year, businesses will no longer be required to file a 1099 for a contractor unless they pay that person at least $2,000. For the millions of…

An asian woman stands outside holding a credit card and smartphone with a smile

The American Opportunity Tax Credit refunds up to $2,500 per college student each year for four years — and 40% of the credit is refundable even for families with zero federal income tax liability

Warren Cohen6 days ago6 days ago018 mins

A family earning $45,000 a year and writing a tuition check for a freshman at a state university can file a federal tax return next spring and receive up to $1,000 in cash from the IRS, even if the household owes nothing in federal income tax. That payment comes from the American Opportunity Tax Credit,…

About 1 in 5 workers eligible for the Earned Income Tax Credit never claims it — leaving an average $2,541 per family on the table at the IRS every single year

Warren Cohen6 days ago6 days ago010 mins

Somewhere in Texas right now, a home health aide earning $26,000 a year is eligible for a federal tax credit that could put more than $2,500 back in her pocket. She will probably never claim it. Texas has one of the lowest Earned Income Tax Credit participation rates in the country, and nationally, roughly one…

Frustrated young husband and wife doing paperwork together, calculating their expenses, managing bills, using laptop computer and calculator in modern kitchen

Selling a primary home lets married couples exclude up to $500,000 of capital gains from federal tax — but the property must have been owned and lived in for 2 of the last 5 years

Warren Cohen6 days ago6 days ago014 mins

A married couple in Austin sells the house they bought in 2018 for $350,000. The closing price in 2026: $825,000. Their gain on paper is $475,000, and under federal tax law, every dollar of it can be excluded from income tax. A single neighbor with the same numbers would owe federal tax on $225,000 of…

Modern Businesswoman Working from Home Young Female Entrepreneur Using Laptop for Freelance project

Self-employed workers pay both sides of the FICA tax — 15.3% on top of income tax — but the employer half is deductible as an adjustment before calculating adjusted gross income

David Keller6 days ago6 days ago015 mins

About 16 million Americans filed Schedule SE with their federal tax returns in recent years, according to IRS Statistics of Income data. Every one of them confronted the same math: because no employer exists to split the payroll tax bill, freelancers, gig workers, independent contractors, and sole proprietors owe the full 15.3% self-employment tax on…

United States 1040 tax form individual income tax return with refund check and US dollar bills

The IRS issues 90% of e-filed tax refunds within 21 days when direct deposit is on file — paper returns now average 8 weeks, with another week tacked on for each missing form

David Keller6 days ago6 days ago014 mins

A taxpayer who e-filed a federal return on January 27 and chose direct deposit could have seen the money in a bank account by Valentine’s Day. A taxpayer who dropped a paper return in the mail the same week might still be waiting in late March. That gap is not a glitch. It is the…

Category: Taxes & Policy

There’s no IRS time limit on reimbursing yourself from an HSA — pay today’s medical bill in cash, let the account grow tax-free for 20 years, then cash the receipt

The IRS may owe you a refund for penalties paid between 2020 and 2023 — you have 41 days left before the July 10 deadline

The OBBBA permanently set the Child Tax Credit at $2,200 per qualifying child under 17 — $1,700 of it refundable for working families with little or no federal tax liability

The estimated tax safe harbor demands 110% of last year’s tax for AGI over $150,000 — pay that and no underpayment penalty hits, no matter how big the final tax

The 1099-MISC and 1099-NEC reporting thresholds just doubled to $2,000 for 2026 — gig workers earning less than $2,000 from a single payer won’t get a form at all

The American Opportunity Tax Credit refunds up to $2,500 per college student each year for four years — and 40% of the credit is refundable even for families with zero federal income tax liability

About 1 in 5 workers eligible for the Earned Income Tax Credit never claims it — leaving an average $2,541 per family on the table at the IRS every single year

Selling a primary home lets married couples exclude up to $500,000 of capital gains from federal tax — but the property must have been owned and lived in for 2 of the last 5 years

Self-employed workers pay both sides of the FICA tax — 15.3% on top of income tax — but the employer half is deductible as an adjustment before calculating adjusted gross income

The IRS issues 90% of e-filed tax refunds within 21 days when direct deposit is on file — paper returns now average 8 weeks, with another week tacked on for each missing form

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