Core Insights - The tax filing season is characterized by stress, with a focus on quick submissions and refunds, but this approach may lead to errors and missed credits [1] - The IRS reported over 1.2 million math errors on individual income tax returns in fiscal year 2024, indicating the importance of accuracy in tax filings [1] Group 1: Tax Filing Process - Artificial intelligence, such as ChatGPT, can assist taxpayers in navigating the filing process effectively [2] - The first step in tax preparation is to confirm all income is accounted for, including W-2s and 1099 forms, and to compare these with personal records [3] - The IRS receives copies of most tax forms and checks for discrepancies, which can lead to audits if mismatches occur [4] Group 2: Deductions and Credits - Taxpayers should organize and maximize deductions by categorizing business expenses and comparing standard deductions with itemized deductions [5][6] - Homeowners should gather mortgage interest statements and property tax records, along with charitable contributions and medical expenses [6] - Reviewing tax credits is crucial, as they can significantly reduce tax bills, with common credits including the child tax credit and education credits [7] - Supporting documentation for credits, such as childcare payment records and tuition statements, should be collected [7] Group 3: Payment Verification - The final recommended step is to verify any estimated tax payments made throughout the year to ensure accuracy [8]

Tax season feels like a black box where money goes in and you hope something comes back out. I asked ChatGPT for a realistic strategy to maximize my 2026 tax refund without crossing into questionable territory or relying on TikTok hacks. The artificial intelligence started with an important reality check that most people miss. A Big Refund Isn’t Actually Winning ChatGPT explained that a large refund usually means you overpaid taxes throughout the year. The government held your money interest-free for 1 ...

There's a reason IRAs and 401(k)s are popular choices for building retirement savings. Retirement accounts like these give you a tax break on your contributions. They also allow your money to grow on a tax-deferred basis so you're not hit with a tax bill on capital gains year after year. But there's a problem with traditional IRAs and 401(k)s. If you tap your savings before turning 59 and 1/2, you risk a 10% penalty on whatever sum you withdraw. Will AI create the world's first trillionaire? Our team just ...

Core Insights - The tax season is currently active, with a filing deadline of April 15, and taxpayers are encouraged to organize their documents early to avoid last-minute stress [1] Group 1: Tax Changes and Deductions - New deductions include no tax on qualified tips, no tax on overtime, deductions for car loan interest, and additional deductions for individuals aged 65 or older [2][5] - The average tax refund last year was $3,167, with projections indicating it could increase by $1,000 this year due to tax law changes [2] - The standard deduction has increased to $15,750 for single taxpayers, $31,500 for married couples filing jointly, and $23,625 for heads of households [5] - The SALT deduction cap has increased from $10,000 to $40,000, benefiting taxpayers in high state income tax areas [5][7] Group 2: Tax Preparation Resources - Taxpayers can utilize free resources such as IRS Free File for guided tax preparation for those earning $89,000 or less [11] - The IRS offers two programs for free tax help: Volunteer Income Tax Assistance (VITA) for low-income individuals and Tax Counseling for the Elderly (TCE) for seniors [12] Group 3: Common Mistakes and Best Practices - Taxpayers are advised to double-check their Social Security information and ensure all income is reported accurately to avoid audits [13][15] - It is recommended to keep copies of tax returns for five to seven years for potential audits [22] - Taxpayers should be cautious of tax scams, especially during tax season, and verify the legitimacy of tax preparers [20]

Listen and subscribe to The Big Idea with Elizabeth Gore on Apple Podcasts, Spotify, or wherever you find your favorite podcast. Before you make your next big business purchase, there’s a tax update you need to know… In a special segment from this week’s episode of The Big Idea with Elizabeth Gore, featuring Vita Coco (COCO) Co-Founder and Executive Chairman Mike Kirban, Elizabeth takes a tax break to unpack major changes impacting business deductions. With tax season underway, she explains new rules allowi ...

Core Insights - Social media influencers, despite their seemingly glamorous lives, face complex tax obligations similar to other self-employed individuals [1][2] Tax Obligations - Influencers are classified as independent contractors and must report income from various sources, including sponsored posts, brand partnerships, promotional items, ads, and barter transactions [2][5] - Self-employed individuals, including influencers, are subject to a self-employment tax rate of 15.3%, which includes 12.4% for Social Security and 2.9% for Medicare [3] - Influencers must make quarterly estimated tax payments throughout the year, as U.S. tax regulations require taxes to be paid as income is earned [3] Income Reporting - All income, including the fair market value of products received, must be reported on tax returns, regardless of whether a Form 1099-NEC is received [9][10] - In 2023, there were 27 million paid content creators in the U.S., with 44% working full-time, and the mean annual income for creators was approximately $93,000 [11][12] Tax Deductions - Influencers can deduct certain expenses related to content creation, such as half of the self-employment tax, specific purchases for content, and home office expenses [6][7][8] - Deductions are allowed for items exclusively used for content creation, such as makeup for beauty vloggers, but not for personal items that can be used outside of work [7] State Tax Considerations - Influencers earning income from companies outside their home state must file tax returns in each state where income is earned, while also reporting that income in their home state [10]

With age-old myths still puzzling American filers, there are several new tax rules, too. We're actually coming from President Trump's big, beautiful bill. Emma Aerman joins me to unpack what you need to know before your taxes are due on April 15th. Emma, what do I need to know.>> A lot. I mean, filing your taxes has never been accused of being easy, but like you said, with the passage of the One Big Beautiful Bill Act last year, there are a lot of new provisions to consider. Um, so some of those can, you kn ...

Core Insights - The article emphasizes the importance of Schedule C for freelancers, side-hustlers, and small business owners in reporting income and expenses for tax purposes [2][3] Group 1: Understanding Schedule C - Schedule C is an attachment to Form 1040, used to report income earned and business expenses incurred during the tax year [3] - The IRS uses Schedule C to determine net profit or loss, which affects self-employment tax calculations [3] Group 2: Deductions on Schedule C - Deductions can significantly reduce taxable profit, and common write-offs include advertising, vehicle expenses, commissions, office supplies, insurance, travel, meals, and home office expenses [5][7] - Keeping receipts is crucial for substantiating deductions in case of an IRS audit [5] Group 3: Filing Requirements - Individuals typically need to file Schedule C if they operate a business as a sole proprietor or single-member LLC, especially if net earnings exceed $400 [8][9] - Statutory employees also use Schedule C to report income and expenses [9] Group 4: Filing Process - The process of filling out Schedule C involves gathering records, calculating gross income, determining cost of goods sold, itemizing expenses, and calculating net profit or loss [15] - Tax preparation software can simplify the filing process, while hiring a tax professional may provide tailored advice and ensure accuracy [10][11] Group 5: Who Should Not File Schedule C - W-2 employees and individuals engaged in hobby activities rather than profit-driven businesses should not file Schedule C [16] - Partnerships file Form 1065 instead of Schedule C [16]

Core Insights - The 2023 tax season is expected to be significant, with the IRS anticipating around 164 million individual income tax returns, primarily filed online, influenced by the provisions of President Trump's One Big Beautiful Bill Act [1] Tax Refunds and Changes - The Bank of America Institute forecasts a 26% increase in tax refunds due to recent changes, particularly benefiting middle- and higher-income filers, with average refunds potentially rising by $300 to $1,000 compared to previous years, where typical refunds averaged around $3,000 [2] - A survey by Intuit's TurboTax revealed that 40% of Americans are unaware of the new tax changes, and approximately 33% believe they will be worse off, despite the potential for increased refunds or lower balances due [3] Deductions and Benefits - The standard deduction for the 2023 tax season is set at $15,750 for single filers and $31,500 for married couples filing jointly, showing a modest increase from the previous year [6] - Seniors over 65 can claim an additional deduction of up to $6,000, which primarily benefits upper-middle-class seniors with significant wealth [7] - The senior deduction phases out for individuals with modified adjusted gross incomes exceeding $75,000, or $150,000 for couples [8] Specific Provisions for Workers - Certain workers, such as restaurant servers, can temporarily deduct up to $25,000 in qualified tips on their federal returns through 2028, with the benefit phasing out for incomes above $150,000 [9]

Core Insights - The article discusses various federal tax credits available to taxpayers, emphasizing the importance of understanding eligibility based on income levels and the nature of the credits [1][4]. Tax Credit Types - **Partially Refundable Tax Credits**: Only a portion of the credit is refundable; for instance, a $1,000 credit with $800 refundable results in an $800 refund if the tax bill is zero [2]. - **Refundable Tax Credits**: These credits can result in cash back; for example, a $1,200 credit against a $1,000 tax bill yields a $200 refund [2]. - **Nonrefundable Tax Credits**: These credits can reduce tax liability to zero but cannot result in a refund; for example, a $1,200 credit against a $1,000 tax bill would cap the benefit at $1,000 [3]. Child and Dependent Tax Credits - **Child Tax Credit**: Taxpayers with a modified adjusted gross income below $400,000 (married filing jointly) or $200,000 (other filers) may qualify for a credit of up to $2,200 for the 2025 tax year, with reductions for incomes above these thresholds [5][6]. - **Child and Dependent Care Credit**: This credit can be worth up to $1,050 for one child or dependent and up to $2,100 for two or more, based on a percentage of childcare expenses [9]. Earned Income Tax Credit (EITC) - The EITC targets low- to moderate-income workers, with maximum credits ranging from $649 for no qualifying children to $8,046 for three or more qualifying children for the 2025 tax year [11][12]. Educational Tax Credits - **Lifetime Learning Credit**: Worth up to $2,000 per tax return for qualified education expenses, this nonrefundable credit is available to taxpayers with modified adjusted gross incomes below $90,000 (single) or $180,000 (married filing jointly) [15][16]. - **American Opportunity Tax Credit (AOTC)**: This partially refundable credit can provide up to $2,500 for educational expenses, with a maximum refund of $1,000, available to taxpayers with similar income thresholds as the Lifetime Learning Credit [17][18][19]. Tax Credits for Electric Vehicles and Renewable Energy - **Electric Vehicle Tax Credit**: Previously offered up to $7,500 for new electric vehicles, this credit is no longer available for purchases made after September 30, 2025 [20][21]. - **Residential Clean Energy Tax Credit**: Taxpayers can claim credits for sustainable home improvements made by December 31, 2025, including solar panels and other energy-efficient upgrades [22][23]. Saver's Credit - The Saver's Credit is available for individuals with modest incomes contributing to retirement savings plans, with credits ranging from 10% to 50% of contributions, capped at $1,000 for individuals and $2,000 for married couples [25][26].