Honor CPA

Happy Easter!

Starting a new business? Thinking of creating an LLC? Talk to your CPA first. Once you open that LLC, it possibly triggers franchise/privilege tax returns/filing fees with hard deadlines. Don't wait until year end. Let your CPA know as soon as you are thinking of doing it so you don't get caught cleaning up an expensive mess.

Before you make IRA contributions, consult your trusted tax advisor. It's not just your income, but other factors as well that impact your eligibility. Save yourself the headache, and ask first.

Signed,
A CPA

Your tax return contains sensitive personal information. Make sure you are dealing with a reputable provider. A Certified Public Accountant (CPA) is the highest designation for a tax professional in the USA. CPAs in Alabama are regulated by the State Board of Public Accountancy and they have to complete annual registration and education.

Social Security benefits are taxable for federal income tax purposes. Each state may decide how to tax those benefits. The long standing rule is that only up to 85% of the income received in a year is included in taxable income. There is a formula, which includes your all income from all sources, to calculate exactly how much social security is included in taxable income, but it will never exceed 85% of the total benefits received.

The One Big Beautiful Bill improved the uses of 529 plan funds. K-12 expenses up to $20,000 are now eligible to be paid from 529s. Eligible expenses have also been expanded to include obtaining or maintaining qualified postsecondary credentials. In other words, apprenticeship programs and occupational licenses now are eligible expenses. Excess funds may be used for other beneficiaries or retirement.....please contact us for information on your specific situation. [email protected]

There are always new scams popping up. As a reminder, the IRS will ONLY contact you via snail mail to your most recent address. They will not call/email/text you. If you get an email/phone/text regarding taxes due...delete it! It's a scam!

Today is the day! The IRS officially starts accepting electronically filed tax returns today!

The One Big Beautiful Bill improved the federal adoption tax credit for tax years 2025 and forward. The maximum credit is now $17,280 per eligible child (AGI phase outs begin at $259,190). Up to $5,000 of the credit is now refundable. Any carryover can be used up to 5 years post adoption. I love how this bill helps make caring for vulnerable children that need families a little easier.

Yes, the headlines look great, but this new deduction applies to only some citizens 65 and over. For any taxpayer 65 and over, they may take the $6,000 deduction if their Adjusted Gross Income is below the threshold ($75,000 single or $150,000 joint). For some taxpayers, there is a partial deduction (AGI between $75,00 and $125,000 for single filers or between $150,000 and $250,000 for married taxpayers). For anyone over these limits ($125,000 single or $250,000 joint), there is no deduction.

Questions? We've got answers! [email protected]

Electronic filing for business tax returns starts January 13, 2026

https://www.journalofaccountancy.com/news/2026/jan/electronic-filing-for-business-tax-returns-starts-next-week/?utm_campaign=20260107&utm_source=facebook&utm_medium=social&fbclid=IwZXh0bgNhZW0CMTEAc3J0YwZhcHBfaWQQMjIyMDM5MTc4ODIwMDg5MgABHg4izCt2SQn85q4Aj-l91uDPQNiIHUHEzBC2jfoLIU4Xa2J3aZkVtfkOH-tq_aem_YE7vTDicMRpb8XRU9BUA8g

Electronic filing for business tax returns starts next week The IRS said it will begin accepting business tax returns electronically next week. No date has been announced yet for individual tax returns.