Category: Taxes Made Simple
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The IRS proposed blocking people in the country illegally from the refundable part of the child tax credit
Treasury and the IRS have proposed a new rule that would change who can collect the extra, refunded portion of four popular tax credits. The proposal targets people living in the country illegally, but the mechanics of how it would work, and what it would leave untouched, matter for millions of mixed-status and immigrant households…
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The IRS proposed letting employers put $2,500 a year into a worker’s Trump Account tax-free
An employer that wants to help a worker save for a child’s future could soon have a straightforward, tax-free way to do it — at least on paper. The Treasury Department and the Internal Revenue Service floated proposed regulations on Aug. 11, 2026, spelling out how a company could contribute up to $2,500 a year…
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Starting in 2027, the IRS will match half of what a low-income worker saves, up to $1,000
The Treasury Department and the IRS confirmed this month that a new federal program, the Saver’s Match, will begin adding federal money to the retirement accounts of low- and moderate-income workers — but not until contributions made in 2027, and not paid out until 2028. The match replaces a decades-old tax credit that worked very…
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The IRS says overtime pay is still fully withheld, and the new deduction shows up only at filing
Overtime pay is not getting any bigger on payday under the federal tax law that created a new deduction for it. The Internal Revenue Service made that explicit on August 6, 2026, when it published a substantially rewritten set of frequently asked questions on the deduction for qualified overtime compensation, replacing guidance the agency had…
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The IRS again says the proposed $2,000 tariff-dividend check has not been approved by Congress
A rumor keeps circulating that Americans are about to receive a $2,000 tariff-dividend check, and the reality is worth stating plainly: no such payment has been approved. The idea remains a proposal, not a law, and the IRS has warned that scammers are already using the buzz to trick people. This is a story about…
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The IRS child tax credit can cut a working family’s tax bill by thousands
For families raising kids, the child tax credit is one of the most valuable lines on a tax return, and because part of it is refundable, it can put money back in a household’s pocket even when little or no tax is owed. Used correctly, it reduces a family’s tax bill by thousands of dollars,…
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Taxpayers 65 and older get a larger standard deduction that many forget to take
One of the simplest tax breaks in the code is also one of the easiest to miss: people 65 and older get a bigger standard deduction. It requires no itemizing, no receipts, and no special form, just checking a box for age. Yet older filers who prepare their own returns sometimes overlook it and pay…
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The IRS lets most households file free through Direct File and in-person VITA help
Millions of households pay for tax preparation they could get for free. The IRS and its partners offer several no-cost ways to file, from the government’s own online Direct File tool to volunteer sites that prepare returns in person. For a family expecting a modest refund, skipping the preparation fee can mean keeping an extra…
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Workers can deduct up to $12,500 of overtime pay for 2026, now reported on the W-2
Workers who log long hours have a tax break coming, and starting with 2026 the amount will be printed right on the W-2. Eligible workers can deduct up to $12,500 of qualified overtime, or up to $25,000 for married couples filing jointly, when they file their federal return. It is real money for people who…
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The $6,000 senior deduction Trump signed fades above $75,000 and disappears after 2028
A new tax break for older Americans has been widely, and wrongly, described as the end of taxes on Social Security. What the law actually created is narrower: a temporary $6,000 deduction for people 65 and older that starts shrinking once income passes $75,000 and expires entirely after 2028. Understanding the real shape of it…
