Make sure the name and SSN on the return match the Social Security card exactly. If your name changed (for example, marriage/divorce), update the Social Security Administration (SSA) first, then file or correct your return.
Enroll at EFTPS.gov, then you can schedule multiple estimated payments in advance and set a recurring cadence. Individuals can schedule payments up to 365 days ahead; businesses up to 120 days.
IRS Direct Pay: Make one-time payments from a checking or savings account with no fees. You can schedule in advance and get instant confirmation. Works for 1040-series balances, estimates, and more
Go to IRS.gov/account and select “Sign in to your Online Account” to view your federal tax account information. New users will be prompted to verify identity; have photo ID ready. 1
Entering incorrect credit amounts (for example, Child Tax Credit, Recovery Rebate Credit) instead of using IRS letters/Online Account to reconcile; the IRS adjusts these and it slows processing 1
If you use an ITIN, confirm it’s valid; expired ITINs can delay processing and refunds. The IRS accepts returns with expired ITINs, but renewal may be needed for smooth processing
A filing extension gives you extra time to submit your tax return, generally up to six months (typically until Oct. 15 for individuals).
he due date to file your 2024 federal individual income tax return is Tuesday, April 15, 2025. If you e-file, the transmission time in your time zone controls timeliness; if you mail, a timely postmark counts.
Contribute up to the annual elective deferral limit to your 401(k) or 403(b) and use age-50 catch-up if eligible. For reference, the IRS shows 2024 limits of $23,000 (401(k)/403(b)) and $16,000 (SIMPLE)
Most GRATs are structured as grantor trusts, so all trust income, deductions, and gains are taxed to the grantor while the grantor retains powers or interests that trigger grantor trust status. Under Rev. Rul. 85-13 principles
Amounts paid by reason of the insured’s death are generally excluded from the beneficiary’s gross income. Any interest paid on top of the death benefit (for example, if the insurer holds the proceeds and pays installments with interest) is taxable as interest income and should be reported accordingly.
Yes. A QCD is a direct transfer from your IRA to a qualifying charity that is excluded from your gross income. The basic QCD rules (age 70½ or older; direct trustee-to-charity transfer; only to section 170(b)(1)(A) organizations
Naming a beneficiary has no tax effect by itself. Taxation happens when benefits are paid. In general, a beneficiary includes in income the same portion of a retirement plan distribution the participant would have,
There’s no special change to gift tax reporting just because the recipient is a non‑U.S. person. U.S. gift tax is donor‑based: you file Form 709 for taxable gifts in the same way you would for gifts to U.S. persons.
For most non-spouse “designated beneficiaries,” an inherited IRA (traditional or Roth) must be fully distributed by December 31 of the 10th year after the year of the original owner’s death.
A conversion from a traditional, SEP, or SIMPLE IRA to a Roth IRA is treated as a distribution from the non‑Roth IRA and a rollover to the Roth IRA. The taxable portion equals the fair market value converted minus any after‑tax basis
For 2025, you can give up to $19,000 to each donee without using any lifetime exemption. A married couple can shield up to $38,000 per donee (via gift-splitting) if they consent and file Form 709 as required
The federal basic exclusion amount (estate and lifetime gift tax exemption) for decedents dying in 2025 is $13,990,000 per individual. 1
The default for qualifying sales is to report gain proportionally as payments are received under IRC §453. You can elect out and recognize all gain in the year of sale by reporting the sale on the original timely return (including extensions), e.g., on Form 4797/Schedule D, instead of Form 6252.
Only exchanges of real property held for productive use in a trade or business or for investment qualify for nonrecognition under section 1031. Personal property and most intangibles no longer qualify; exceptions are narrow (e.g., certain mutual ditch/reservoir/irrigation shares treated as real property under state law).
The individual AMT is an extra 3-step computation: determine alternative minimum taxable income (AMTI) by adjusting regular taxable income for AMT preference items, subtract the AMT exemption, apply AMT rates (26%/28%) to get tentative minimum tax, and compare it to regular tax
Individuals owe a 3.8% tax on the lesser of: (a) their net investment income (NII), or (b) the excess of modified adjusted gross income (MAGI) over the statutory threshold ($200,000 single, $250,000 MFJ, $125,000 MFS; not indexed).
PPP loan forgiveness is excluded from gross income. Congress codified that no amount is included in income by reason of forgiveness of a PPP First Draw, Second Draw, or §1109 PPP loan. Further, no deduction is denied, no tax attribute is reduced, and no basis increase is denied because of this exclusion.
Section 179 expensing limits increased starting with tax years beginning after 12/31/2024: up to $2,500,000 immediate expensing, with phase-out starting at $4,000,000 of Section 179 property placed in service, and indexed for inflation thereafter.
Concise, practitioner-focused roundup of notable state tax changes recently enacted or taking effect, plus how to monitor and plan for continuing variation across states.
Regular credit: 20% of current-year QREs over the base amount. Optimizes when your fixed‑base percentage is low and current QREs are high relative to gross receipts.
The credit equals your base 45Y amount times the “phase‑out percentage” if construction begins in a phase‑out year. IRS final rules confirm the computation and that 45Y’s “applicable year” determination also governs 48E phase‑out. 1
Depreciation is allowed for property used in farming or held for the production of income under IRC §167; most post-1986 tangible farm property uses MACRS under §168 with prescribed methods, recovery periods, and conventions.
To be treated as a real estate professional for passive activity loss rules, you must satisfy both annual tests below with respect to real property trades or businesses in which you materially participate:
Most organizations exempt under IRC §501(a) must file an annual information return under §6033 on a Form 990-series return, reporting income, receipts, disbursements, and other required information.
Classify each worker under the common-law control test. If you have the right to direct what will be done and how, the worker is an employee (this applies even to remote workers).
Maximize QBI, but remember the deduction is the lesser of 20% of QBI (plus 20% of qualified REIT/PTP income) or 20% of taxable income reduced by net capital gain. Managing taxable income and net capital gain often binds the deduction before business limits do. 1
Below is a practical framework to compute each regime, highlight interactions, and reflect changes made by the One Big Beautiful Bill Act (OBBBA). Where OBBBA adjusted parameters effective for tax years beginning after 12/31/2025, I note those new amounts.
Many states let partnerships and S corporations elect to pay state income tax at the entity level (PTE or PTET). The entity-level tax is generally deductible by the business for federal income tax purposes, bypassing the individual SALT $10,000 cap on Schedule A
A partnership owes a penalty if it files Form 1065 late (after the due date, including extensions) or files an incomplete return lacking required information, unless it establishes reasonable cause. 1
Calendar-year filers (tax year ending Dec 31, 2024): due March 17, 2025 (March 15 falls on a Saturday) Fiscal-year filers: due the 15th day of the 3rd month after year-end
Changing a business’s federal tax classification or legal form can trigger deemed transactions for income tax, employment tax, and information reporting.
The federal basic exclusion amount for estate and gift tax is increased to $15,000,000 per person (indexed for inflation) beginning for decedents dying and gifts made after December 31, 2025.
U.S. citizens and resident aliens are taxed on worldwide income, even if they live and work abroad. Report all foreign-source earned and unearned income on a U.S. return each year. Nonresident aliens generally owe U.S.
States generally tax wage income where the work is performed; the resident state typically taxes all income but offers a credit for taxes paid to other states to mitigate double taxation. Convenience-of-the-employer rules and reciprocity agreements can change the result.
TET lets partnerships and S corporations pay state income tax at the entity level so owners can receive a federal deduction not limited by the individual SALT cap. Nearly all high-tax states, and many others, now offer PTET.
The IRS treats cryptocurrency and other blockchain-based tokens as “digital assets,” and digital assets are treated as property. General property tax rules apply to purchases, sales, exchanges, and dispositions.
When you file a joint return, both spouses are jointly and severally liable for the entire tax, interest, and penalties. Innocent spouse relief can remove your responsibility for tax attributable to your spouse’s erroneous items
A CDP hearing is an independent review by the IRS Office of Appeals of a proposed levy or a filed Notice of Federal Tax Lien (NFTL). It is intended to ensure the action is warranted and appropriate, and that collection alternatives were considered first
You can request review by the IRS Independent Office of Appeals for most disputed matters (exam adjustments, penalties, liens/levies, interest abatement denials, OIC rejections).
An OIC is a binding agreement with the IRS to settle your tax liabilities for less than the full amount owed. The IRS generally will not accept an OIC if you can fully pay through an installment agreement or other means.
Returns are classified to determine the scope and where the case is worked: correspondence, office (TCO), or field (RA). RAs handle more complex cases and TCOs more limited issues; proper assignment is based on issue complexity and time expectations.
Read the notice carefully to identify the tax year, the issue, the amount (if any), and the response deadline. Many IRS notices allow about 30 days to respond; allow the IRS at least 30 days to reply back after you respond.
Here’s what HIVE AI had to say about "Client confidentiality and disclosure requirements": Client Confidentiality and Disclosure Requirements Overview of Confidentiality Obligations Client confidentiality represents one of the fundamental pillars of professional tax...
The electronic filing mandate for tax preparers represents a comprehensive regulatory framework designed to modernize tax administration and improve processing efficiency.
By law, you must meet four specific due diligence requirements if you are paid to prepare a tax return or claim for refund claiming any of these tax benefits.
Tax return preparer penalties are comprehensive civil sanctions designed to ensure professional competence and compliance in tax preparation services.
Practice before the Internal Revenue Service encompasses all matters connected with presentation to the Internal Revenue Service or any of its personnel relating to a taxpayer’s rights, privileges, or liabilities
Section 330 of title 31 of the United States Code authorizes the Secretary of the Treasury to regulate the practice of representatives of persons before the Treasury Department (Treasury).
The One Big Beautiful Bill Act (OBBBA) introduces a revolutionary new savings vehicle called “Trump Accounts” designed specifically to help children build long-term wealth from birth.
Here’s what HIVE AI had to say about "Are there any retroactive provisions or opportunities for amended returns under the One Big Beautiful Bill?": Retroactive Provisions and Amended Return Opportunities Under the One Big Beautiful Bill The One Big Beautiful Bill Act...
The One Big Beautiful Bill Act (OBBBA) contains a complex array of effective dates and transition rules that reflect the comprehensive nature of this landmark legislation.
The One Big Beautiful Bill Act (OBBBA) introduces significant modifications to the Base Erosion and Anti-Abuse Tax (BEAT) and other international minimum tax provisions, fundamentally altering the landscape of international tax compliance for multinational corporations.
The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, introduces significant changes to international tax policy that substantially affect foreign investors and cross-border tax rules.
The One Big Beautiful Bill Act (OBBBA) introduces several significant changes to reporting requirements and compliance deadlines that directly impact multinational businesses operating in the United States.
The One Big Beautiful Bill Act (OBBBA) introduces significant modifications to pass-through entity deductions and limitations, particularly affecting specified service trades or businesses (SSTBs).
The One Big Beautiful Bill Act (OBBBA) introduces transformative changes to the Qualified Small Business Stock (QSBS) gain exclusion under Section 1202, representing one of the most significant enhancements to this provision since its original enactment.
The One Big Beautiful Bill Act (OBBBA) introduces significant modifications to the excess business loss limitation rules under Section 461(l), fundamentally altering the landscape for non-corporate taxpayers who experience business losses.
The One Big Beautiful Bill Act (OBBBA) introduces transformative changes to the treatment of domestic research and development expenses, representing one of the most significant business tax provisions in the legislation.
The One Big Beautiful Bill Act (OBBBA) introduces substantial increases to the Section 179 expensing limits, representing one of the most significant enhancements to this business tax provision in recent years.
The One Big Beautiful Bill Act (OBBBA) introduces several significant modifications to the business interest expense deduction rules under Section 163(j), fundamentally altering how businesses calculate their allowable interest deductions and coordinate with other tax provisions.
The One Big Beautiful Bill Act (OBBBA) has indeed permanently reinstated 100% bonus depreciation, representing one of the most significant business tax provisions in the legislation.
The Qualified Business Income (QBI) deduction under Section 199A has undergone significant modifications through the One Big Beautiful Bill Act (OBBBA), which was signed into law on July 4, 2025.
The One Big Beautiful Bill Act (OBBBA) represents a dramatic shift in federal electric vehicle policy, implementing comprehensive terminations and restrictions on EV-related tax credits that fundamentally alter the landscape for electric vehicle adoption and charging infrastructure development.
The One Big Beautiful Bill Act (OBBBA) represents a significant policy shift that includes several new incentives and enhancements for fossil fuel production and manufacturing activities.
The One Big Beautiful Bill Act (OBBBA), passed in July 2025, represents a significant shift in federal energy policy, implementing substantial changes to clean energy tax incentives.
The One Big Beautiful Bill introduces significant changes to the itemized deduction framework that will fundamentally alter how taxpayers calculate their tax liability.
The One Big Beautiful Bill introduces a significant new tax benefit that allows taxpayers to deduct interest paid on qualifying auto loans for personal use vehicles
The One Big Beautiful Bill introduces significant enhancements to the Child Tax Credit that build upon the existing framework while providing increased benefits and permanent provisions.
The One Big Beautiful Bill introduces significant and permanent changes to the standard deduction structure that build upon the temporary increases established by the Tax Cuts and Jobs Act
The One Big Beautiful Bill represents a comprehensive tax reform proposal that fundamentally restructures the individual income tax system. Based on the available documentation, this legislation introduces significant changes to tax brackets, rates, and various deductions that would affect millions of American taxpayers.
The One Big Beautiful Bill does not appear to contain specific provisions that directly modify the existing pass-through entity tax workaround for State and Local Tax (SALT) deductions.
The increased State and Local Tax (SALT) deduction cap under the One Big Beautiful Bill represents a temporary enhancement to the current tax limitation structure.
The One Big Beautiful Bill introduces significant changes to the State and Local Tax (SALT) deduction that represent a substantial departure from the current $10,000 limitation established by the Tax Cuts and Jobs Act (TCJA).
Yes, equipment financed in 2024 is still eligible for depreciation, including bonus depreciation and Section 179 expensing. The method of financing does not affect the depreciation eligibility of business equipment, as long as the equipment meets the fundamental requirements for depreciation.
Depreciating real estate used in your business involves specific rules and methods under the Modified Accelerated Cost Recovery System (MACRS). The treatment depends on the type of real property, when it was placed in service, and how it’s used in your business operations.
The tax treatment of software subscriptions and licenses depends on several factors, including the type of software, how it’s acquired, and how it’s used in your business. The tax code provides different pathways for expensing or capitalizing these costs, each with specific requirements and benefits.
Bonus depreciation, also known as the additional first year depreciation deduction under Section 168(k), follows a specific phase-down schedule that began after 2023. Understanding this phase-down is crucial for tax planning as it significantly impacts the immediate tax benefits available for qualifying business property investments.
Section 179 expensing allows taxpayers to immediately deduct the cost of qualifying business property rather than depreciating it over time. For 2024, there are specific requirements and limitations that determine what qualifies for this valuable tax benefit.
There are several significant clean energy tax credits available for business vehicles and property in 2024 and beyond. These credits are designed to incentivize businesses to adopt cleaner technologies and reduce their environmental impact.
Yes, you may be eligible to claim the Work Opportunity Tax Credit (WOTC), but eligibility depends on several specific requirements related to your business type, the employees you hire, and proper certification procedures.
Yes, there are several tax credits available for employers who offer health insurance to their employees. The primary credit is the Small Business Health Care Tax Credit, along with various other considerations and requirements under the Affordable Care Act.
No, you cannot claim the Employee Retention Credit (ERC) in 2025. The Employee Retention Credit (ERC) is only available for eligible employers that paid qualified wages to employees between March 13, 2020, and December 31, 2021
The Research and Development Credit (IRC Section 41) has been made permanent and offers significant benefits for qualifying small businesses.
Yes, you can pay your children or spouse through the business, but there are specific rules and requirements that must be followed to ensure the payments are legitimate business expenses and comply with employment tax obligations.
Reporting owner’s compensation depends significantly on the business structure and the owner’s role within the organization. The treatment varies dramatically between different entity types, and proper reporting is essential for both tax compliance and avoiding penalties.
Handling state unemployment and payroll tax filings requires understanding both the federal framework and the specific requirements of each state where you have employees. This process involves multiple components including registration, ongoing filings, tax calculations, and compliance with varying state-specific rules.
Payroll taxes are indeed deductible as business expenses, but the specific treatment depends on which type of payroll taxes you’re referring to and your role as either an employer or self-employed individual.
The requirement to issue Form W-2 to employees is governed by specific statutory and regulatory provisions that establish both the circumstances requiring issuance and the timing for providing these critical tax documents.
When issuing forms to independent contractors, you primarily use Form 1099-NEC (Nonemployee Compensation), which replaced the use of Form 1099-MISC for reporting nonemployee compensation starting in tax year 2020.
The distinction between an employee and an independent contractor is one of the most fundamental and complex issues in tax law, with significant implications for both the worker and the entity paying for services. This classification affects tax withholding obligations, employment tax responsibilities, benefit eligibility, and various deduction opportunities.
Bonus depreciation for vehicles in 2024 is 60% of the adjusted basis for most qualified property placed in service during the year T.D. 9874 . This represents a continuation of the phaseout schedule established by the Tax Cuts and Jobs Act.
Deduct only the business-use percentage of expenses, based on accurate mileage tracking.
Yes, Section 179 is applicable to SUVs and trucks, but with important limitations and restrictions that you must understand to properly claim these deductions.
Yes, lease payments are deductible if the vehicle is used for business and records are maintained.