- De Minimis: 2026 Trump Changes and Effects on Consumer Costs
The term de minimis refers to a U.S. customs rule that exempts low-value imports, typically under $800, from tariffs. In 2025, the Trump administration eliminated this exemption for goods from China and Hong Kong. Shipments of up to $800 in goods from these regions now face a 54% tariff or a $100 flat fee. This… read more…
- Trump’s Tax Plan for Capital Gains Taxes
The tax legislation signed into law by President Trump in 2025, commonly known as the One Big Beautiful Bill Act, retains the existing capital gains tax structure. Long-term capital gains continue to be taxed at rates of 0%, 15% and 20%, with no adjustments to the existing income thresholds or rate schedule. Although the law… read more…
- What Is Trump’s Plan for Taxes on Overtime?
President Trump officially signed the landmark One Big Beautiful Bill Act into law on July 4, 2025, marking a significant shift in tax policy. Among its provisions are temporary federal deductions for qualified overtime and cash tips (through 2028), with caps of $12,500 ($25,000 joint filers) for overtime and $25,000 for tips, both phasing out at… read more…
- Trump Tax Plan: Homeschool Tax Credit
Signed into law by President Trump on July 4, 2025, the One Big Beautiful Bill Act enacted wide-ranging changes to federal education tax policy, including provisions that may offer financial advantages to homeschooling families. Although the legislation does not establish a federal tax credit exclusively for homeschooling, it expands several existing savings and funding mechanisms.… read more…
- Trump Tax Plan: Stay-at-Home Mom Tax Credit
President Trump signed the One Big Beautiful Bill Act into law on July 4, 2025, extending many provisions originally introduced under the Tax Cuts and Jobs Act while adding several new tax measures. Although the legislation does not establish a specific tax credit for stay-at-home parents, it expands and modifies a number of family-oriented tax… read more…
- Trump Tax Plan: Will Social Security Taxes Get Cut?
President Donald Trump campaigned in 2024 on eliminating federal income taxes on Social Security benefits, but that proposal was not included in the final version of the One Big Beautiful Bill Act (OBBBA). Senate budget reconciliation rules, which prohibit direct changes to Social Security programs, prevented lawmakers from incorporating the measure. Instead, the legislation provides… read more…
- How to File a Tax Extension in California: Eligibility Rules
California grants an automatic tax filing extension until October 15 for individual taxpayers, with no need to submit a formal extension request. However, this extension only applies to filing, not to payment. Taxpayers remain responsible for paying any owed taxes by the April deadline to avoid added penalties and interest. A financial advisor with tax… read more…
- Is There a Penalty for Filing a Tax Extension?
Filing an extension gives you an additional six months to submit your tax return, but not to pay your taxes. There is no penalty for filing for the extension itself. However, if you owe money and don’t pay it by the original due date you may face fees and penalties. If you anticipate a balance… read more…
- Is Your Homeowners Insurance Tax-Deductible?
Homeowners insurance is usually not tax-deductible for personal residences, but you may be able to deduct part of the cost if you use your home for business or rent out a portion. Most personal expenses related to homeownership don’t qualify, so it’s important to understand the exceptions. A financial advisor can help you understand IRS… read more…
- Is It Possible for Tariffs to Replace Income Taxes?
Many questions intrigue economists and policymakers. Right now, one question is being debated more than most: Can tariffs replace income tax? This concept refers back to early American fiscal policy. Before the institution of the income tax, tariffs were the federal government’s primary revenue source. Could this be feasible again? The idea suggests that large… read more…
- Whose Tax Plan Are We Under in 2026?
In 2025, the United States operated under the tax framework established by the 2017 Tax Cuts and Jobs Act (TCJA) during President Donald Trump’s first administration. In July 2025, Trump signed the “One Big Beautiful Bill,” making the TCJA provisions permanent and introducing additional tax changes. A financial advisor can help you respond to changing… read more…
- How to File for a Tax Extension in All 50 States
Filing a state tax extension can provide extra time to prepare and submit your state tax return if you miss the original deadline. While the IRS offers a fairly uniform process for federal tax extensions, the rules for state tax extensions vary widely. Some states automatically grant an extension if you file a federal extension.… read more…
- What Happens If You File an Extension But Owe Money?
Filing an extension can give you extra time to complete your tax return, typically pushing the deadline from April to October. But what happens if you file an extension but owe money? Filing an extension does not give you extra time to pay any taxes owed. If you may owe taxes but need more time… read more…
- Can You Deduct Property Taxes on Your Tax Return?
When tax season rolls around, homeowners often wonder if property taxes are deductible on their tax returns. The answer is yes—you can deduct property taxes on your tax return. In fact, property tax deductions remain one of the valuable benefits of homeownership under current tax law. These deductions allow you to reduce your taxable income… read more…
- 10 Examples of Taxable and Nontaxable Income
Understanding what counts as taxable income and what does not can significantly impact your financial planning and tax obligations. The IRS has specific guidelines about examples of taxable and nontaxable income that every taxpayer should know. While most money you earn is subject to taxation — like wages, salaries, bonuses and business profits — there… read more…
- How Much Can You Inherit Without Paying Taxes?
An inheritance can offer helpful financial support, but it may also come with tax considerations. The taxes you might owe depend on the type of asset, federal and state laws, and the size of the inheritance. Most estates are not subject to federal estate tax because of the high exemption limit, but some states have… read more…
- How to Avoid Capital Gains Taxes in Washington State
Washington State imposes a 7% capital gains tax on the sale of certain long-term assets, including stocks and business interests, above an annual exemption threshold. Although the tax does not apply to all investments, many residents still seek legal strategies to avoid the Washington State capital gains tax. These can include strategies like asset relocation,… read more…
- Can You File Another Tax Extension After October 15?
For most individual taxpayers, the October 15 tax extension deadline is final. Unlike the automatic six-month extension granted in April, the IRS typically does not offer further extensions beyond October 15 for personal tax returns. This deadline represents the absolute cutoff for most filers. Missing it can result in late-filing penalties and interest charges that… read more…
- Why Does Trump Want Tariffs?
President Donald Trump sees tariffs as a means to reduce trade deficits, encourage domestic manufacturing and address national security concerns. By imposing tariffs, Trump aims to make foreign goods more expensive, thereby promoting the purchase of American-made products. This approach is intended to decrease reliance on imports, and generate revenue for the government. But who… read more…
- Refundable Tax Credit: Explanation, Eligibility, Benefits
Tax credits reduce the amount you owe to the IRS, but not all tax credits work the same way. A refundable tax credit can reduce your tax liability below zero. This means you could receive a refund even if you owe nothing in taxes. For eligible taxpayers, this can result in extra money back at… read more…
- What Is Earned Income? Examples and How to Calculate
When it comes to taxes and financial planning, you need to know the IRS has different rules for different types of income. Earned income, the money you make from working, affects everything from how much taxes you pay to whether you qualify for certain deductions or credits. Whether you’re earning a paycheck from an employer,… read more…
- Nonrefundable Tax Credit: Definition, Types, Examples
A nonrefundable tax credit can lower what you owe to the IRS, sometimes substantially but only to a point. Unlike refundable credits, nonrefundable credits cannot generate a refund if the credit amount exceeds your tax liability. That means if your total tax due is zero, the credit cannot push you into a negative balance and… read more…
- 2026 Corporate Tax Rates and Brackets By State
Corporate income taxes vary widely across the U.S. Some states impose flat rates, while others apply graduated brackets based on taxable income, and a few have no corporate tax at all. The variation in corporate tax rate per state is significant enough that it can influence where businesses choose to operate, expand or incorporate. As… read more…
- Inc. vs. LLC: Key Differences, Pros and Cons for Taxes
Choosing between a corporation (Inc.) and a limited liability company (LLC) affects how your business is taxed, how profits are shared and how much paperwork you need. While both LLCs and corporations can elect corporate tax treatment, corporations are structured by default as separate tax entities, which can make it easier to retain earnings (reinvest… read more…
- What Is Withholding Tax and How Is It Calculated?
You’ve likely noticed the IRS withholds a portion of your paycheck before it ever reaches your bank account. This is due to withholding tax, a system the IRS uses to collect income tax throughout the year. Whether you’re an employee trying to fine-tune your paycheck or a business owner handling payroll, you should know how… read more…