My Finance, Insurance & Taxes LLC

IRS’s new “No Tax on Car Loan Interest” deduction lets you subtract up to $10,000 in interest paid on loans for new vehicles.

Here’s the simple breakdown for next year’s filing (2026 for 2025 taxes):

• What qualifies? New cars, SUVs, trucks, vans, or motorcycles (under 14,000 lbs GVWR) assembled in the US—for personal use only. No used rides, leases, or foreign-assembled ones.

• Loan rules: Must start after Dec 31, 2024. Refinances can qualify too.

• How to claim: It’s an above-the-line deduction—no itemizing needed. Just report interest paid (lenders send a statement) and include the vehicle’s VIN on your return.

• Limits: Caps at $10k/year. Phases out if your modified AGI tops $100k (single) or $200k (joint).

If you bought a qualifying car this year, track that interest—could save you hundreds!

🚨 How You Can Improve Your CREDIT FAST🚨

1. Pay Down Credit Card Balances – Keep your credit utilization below 30% (or even better, under 10%). High balances hurt your score.

2. Make Payments on Time – Set up autopay to never miss a due date. Even one late payment can drop your score.

3. Ask for a Credit Limit Increase – A higher limit lowers your utilization—just don’t rack up more debt!

4. Become an Authorized User – If a family member has good credit, being added to their card can help your score.

5. Dispute Errors on Your Report – Check your credit report for mistakes and get them removed if they’re hurting your score.

Small changes can lead to BIG improvements.

(Disclaimer: These tips are for informational purposes only, and not personal financial advice. Results may vary. Consult a professional for personalized guidance.)

🚨If You’re in Your 30s and Don’t Have a Retirement Plan, Read This🚨

Retirement isn’t just for old people—it’s something you need to plan for NOW. The earlier you start, the less you have to save later. Here’s how to build your retirement plan the right way:

1. Max Out Free Money – If your job offers a 401(k) match, contribute enough to get the full match. That’s free money you don’t want to leave behind.

2. Open a Roth IRA – Your money grows tax-free, and you won’t pay taxes when you withdraw it in retirement. Future you will thank you.

3. Invest, Don’t Just Save – Keeping money in a savings account won’t cut it. Invest in index funds, ETFs, or real estate to build real wealth.

4. Cut Debt & Expenses – The less you owe, the more you can put toward your future. Prioritize high-interest debt first.

5. Increase Contributions Over Time – Start with what you can afford, but aim to save at least 15% of your income as you earn more.

6. Set a Goal – Figure out how much you need to retire. Use a retirement calculator and start working toward that number NOW.

Your 30s are the best time to build wealth—don’t waste them. Every dollar you invest today could be worth 10X more by the time you retire.

Are you saving for retirement yet?

Your Credit Score is Holding You Back—Here’s How to Fix It:

1) Know Your Score – Check your credit report. You’re allowed a free one every year, so don’t wait!

2) Pay on Time – Late payments kill your score. Set up automatic payments if you need to.

3) Keep Credit Balances Low – Try to use less than 30% of your available credit. The lower, the better!

4) Mix It Up – Having a variety of credit (credit cards, loans) shows you can manage money well.

5) Limit New Credit Applications – Too many inquiries in a short time hurt your score.

A good credit score = lower interest rates, more opportunities, and more money in your pocket.

*** TAYPAYER ALERT ***
In this situation, the IRS is delaying the release of a taxfiler refund, a 9K+ refund, because the taxfiler did notbfil3 a 2019 tax return.

I prepared the 2019 tax return and the taxfiler owes around $1700.

Not filing five years ago is delaying a refund release today.

Always file, even if you don't pay. You will always owe less if you file rather than the IRS file for you.

TAX ADVICE

Stop letting tax preparers finesse you into claiming "Credit For Federal Taxes Paid On Fuel" (Form 4136). Its not going to payout and your refund will be delayed by months (maybe longer). I am sure any preparer submitting your return with this credit is submitting as "self prepared". The return is being submitted as self-prepared for a reason.

The IRS been on this "lick" for a few years.

THE IRS JUST ANNOUNCED they are officially opening , January 27th!!!

🗣️ Stop spending top dollar to get your credit score to 850 do it on your own and save up your coins and get you a house!! Super easy!!

Save the images to your phone and you just re-type them later.

Don't shy away from a home office tax deduction

The eligibility rules for claiming a home office deduction have been loosened to allow more self-employed filers to claim this break. People who have no fixed location for their businesses can claim a home office deduction if they use the space for administrative or management activities, even if they don’t meet clients there.

As always, you must use the space exclusively for business.

Many taxpayers have avoided the home office tax deduction because it has been regarded as a red flag for an audit. If you legitimately qualify for the deduction, however, there should be no problem.

You are entitled to write off expenses that are associated with the portion of your home where you exclusively conduct business (such as rent, utilities, insurance and housekeeping). The percentage of these costs that is deductible is based on the square footage of the office to the total area of the house.

A middle-class taxpayer who uses a home office and pays $1,000 a month for a two-bedroom apartment and uses one bedroom exclusively as a home office can easily save $1,000 in taxes a year. People in higher tax brackets with greater expenses can save even more.

One home office trap that used to scare away some taxpayers has been eliminated.

In the past, if you used 10% of your home for a home office, for example, 10% of the profit when you sold did not qualify as tax-free under the rules that let homeowners treat up to $250,000 of profit as tax-free income ($500,000 for married couples filing joint returns).

Since 10% of the house was an office instead of a home, the IRS said, 10% of the profit wasn’t tax-free. But the government has had a change of heart. No longer does a home office put the kibosh on tax-free profit.

You do have to pay tax on any profit that results from depreciation claimed for the office after May 6, 1997. It’s taxed at a maximum rate of 25%. (Depreciation produces taxable profit because it reduces your tax basis in the home; the lower your basis, the higher your profit.)

https://www.fox32chicago.com/money/irs-warns-thousands-of-taxpayers-could-face-criminal-prosecution-for-filing-false-returns?fbclid=IwZXh0bgNhZW0CMTEAAR3MvrvuQ88yP_Ump3Jh0ry9yFw4560PwrDkosYiurKBOMQtfq1gJjAY-1U_aem_AXaUbAziTdpVMzvwEgsHQlfYo8SS0Inlx457984reIRmrJn6h22cCQvKxcxPZfEtx-rsmHmbRculQhRKXalO45fJ

*** SPREAD THE WORD AND FOLLOW THIS PAGE FOR TAXFILER UPDATES ***

Offer in Compromise

https://www.irs.gov/payments/offer-in-compromise

An offer in compromise allows you to settle your tax debt for less than the full amount you owe. It may be a legitimate option if you can't pay your full tax liability or doing so creates a financial hardship. We consider your unique set of facts and circumstances:
• Ability to pay
• Income
• Expenses
• Asset equity
We generally approve an offer in compromise when the amount you offer represents the most we can expect to collect within a reasonable period of time. Explore all other payment options before you submit an offer in compromise. The Offer in Compromise program is not for everyone. If you hire a tax professional to help you file an offer, be sure to check his or her qualifications.
Who Is Eligible
Confirm you're eligible and prepare a preliminary proposal with the Offer in Compromise Pre-Qualifier Tool.
You're eligible to apply for an Offer in Compromise if you:
• Filed all required tax returns and made all required estimated payments
• Aren't in an open bankruptcy proceeding
• Have a valid extension for a current year return (if applying for the current year)
• Are an employer and made tax deposits for the current and past 2 quarters before you apply
If You Apply and Are Not Eligible
If you apply for an Offer in Compromise and we can’t process your offer, we'll:
• Return your application and offer application fee
• Apply any offer payment you included to your balance due
Submit Your Application
Find forms to submit an application and step-by-step instructions in Form 656-B, Offer in Compromise BookletPDF.
Complete an application package:
• Form 433-A (OIC) (individuals) or 433-B (OIC) (businesses) and all required documentation as specified on the forms
• Form 656(s) – you must submit individual and business tax debt (Corporation/ LLC/ Partnership) on separate Forms 656
• $205 application fee (non-refundable)
• Initial payment (non-refundable) for each Form 656.
Select a Payment Option
Your initial payment varies based on your offer and the payment option you choose:
• Lump Sum Cash: Submit an initial payment of 20% of the total offer amount with your application. If we accept your offer, you'll receive written confirmation. You must pay any remaining balance due on the offer in five or fewer payments.
• Periodic Payment: Submit your initial payment with your application. Continue to pay the remaining balance in monthly installments while the IRS considers your offer. If IRS accepts your offer, continue to pay monthly until it is paid in full.

Offer in Compromise | Internal Revenue Service An offer in compromise allows you to settle your tax debt for less than the full amount you owe.