Category: Taxes Made Simple
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A new rule lets the IRS withhold 24% of payments when a taxpayer ID is missing
A tax rule that most households have never heard of can take nearly a quarter of a payment before it ever reaches a bank account. It is called backup withholding, and it kicks in when the government cannot match a payment to a correct taxpayer identification number. The mechanism itself is decades old, but a…
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Extended 2025 tax returns are due October 15, with interest already running since April
Roughly one in ten taxpayers asks for extra time to file, and for those who requested a 2025 extension, the real deadline is now close: October 15, 2026. What trips people up is a detail the extension paperwork does not shout about. An extension buys more time to file the return, but it never bought…
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The next estimated-tax payment is due September 15, and skipping it can bring an IRS penalty even with a refund coming
The third of four federal estimated-tax payments for 2026 lands on September 15, and for millions of people whose income does not have taxes taken out automatically, it is a date worth circling. The surprise that catches many households is that the Internal Revenue Service can charge a penalty for missing or shorting these payments…
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Workers must claim the new tips, overtime and car-loan write-offs on a new IRS form or lose them
Several of the headline tax breaks from the 2025 tax law — no tax on tips, no tax on overtime, the car-loan interest deduction, and a bigger deduction for seniors — do not apply themselves. To get any of them, a taxpayer has to fill out a brand-new IRS form and attach it to their…
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The 1099-K tax-form threshold is back up to $20,000, sparing casual online sellers
For the millions of people who sell a few things online or get paid through an app, the threshold that triggers a tax form landing in the mailbox just moved back up — a lot. Under the tax law enacted in 2025, payment platforms only have to send you a Form 1099-K when your payments…
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The estate and gift tax exemption is now a permanent $15 million, or $30 million per couple
The amount a person can pass to heirs free of federal estate and gift tax has jumped to $15 million, and — unlike the last big increase — it is now written into law without an expiration date. For a married couple, careful planning can shield up to $30 million. The change took effect January…
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Families can deduct up to $10,000 in car-loan interest on U.S.-assembled vehicles through 2028
A new federal tax break lets many households write off the interest they pay on a car loan — up to $10,000 a year — as long as the vehicle was assembled in the United States and bought new for personal use. The deduction comes out of the tax law signed in July 2025, and…
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A new law seeds a $1,000 government-funded savings account for babies born through 2028
Every U.S. citizen baby born over a four-year stretch is now in line for a $1,000 head start on saving, courtesy of the federal government. The One Big Beautiful Bill Act created a new kind of tax-advantaged investment account for children, nicknamed a “Trump account,” and seeded it with a one-time federal deposit. For families…
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The IRS offers free online filing and free in-person help for most working households
Millions of families pay a preparer $150 to $300 or more to file a return they could have filed for nothing. The IRS backs several free options, both online software and in-person help from trained volunteers, aimed squarely at working households, retirees, and anyone with a straightforward return. Knowing which door to walk through is…
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The state and local tax deduction cap jumped to $40,000 under the new law
Homeowners in high-tax states have spent years bumping up against a $10,000 ceiling on what they could deduct for state and local taxes. The One Big Beautiful Bill Act lifted that ceiling to $40,000 beginning in tax year 2025, a fourfold increase that reshapes the math for a specific slice of taxpayers. The change is…
