Freedom Tax Services

10/13/2026

Planning for your death is not fun, you don’t want to think about leaving your loved ones behind. However, when you do leave, you want your children to be taken care of, and you likely don’t want them to owe large portions of their inheritances to the IRS.

Planning for death (and taxes) isn't fun, but it is necessary. Leaving investments to your children in a tax-efficient way is a good thing.

10/13/2026

Making ends meet in retirement or maintaining your cost of living can be tricky, especially when parts of your income are being taxed. With prices skyrocketing due to inflation and the ongoing conflict in Iran, income may feel a little tighter. If you’re earning in retirement, you may be able to save on costs with these tax-exempt incomes.

Thankfully, not all the money you receive in retirement is subject to federal income tax.

10/12/2026

📅 62 is the first age Social Security will pay a retirement check, and for a lot of people the birthday starts to feel like the decision. It's one of the few retirement choices you mostly can't take back, so it deserves more than a birthday.

Claiming at 62 pays about 70% of your full benefit if you were born in 1960 or later. On a $2,000 full benefit that's $1,400 a month, and every cost-of-living raise for the rest of your life is a percentage of that smaller number. Wait until 67 and it's $2,000. Wait until 70 and it's $2,480.

Waiting has a cost too. Claiming at 70 means giving up eight years of checks, and someone who dies in their mid-70s would have collected more by starting early. For most people, waiting also means living on savings for a few years first. The longer you expect to live, the more that trade tends to pay.

If you're still working, the earnings test matters. In 2026, SSA withholds $1 of benefits for every $2 of wages or self-employment income above $24,480, until the year you reach full retirement age. Earn $60,000 and the withholding would swallow a $1,400 check entirely. The withheld money isn't refunded. Instead, your check is recalculated higher at full retirement age, so you earn it back gradually, and only if you live long enough. Claiming while working full time usually accomplishes little.

For married couples, the higher earner's claiming age also sets the check the surviving spouse lives on. A widow or widower who waits until their own full retirement age gets what the deceased spouse was receiving, or 82.5% of the deceased's full benefit if that's higher. That's why many couples have the lower earner claim earlier and the higher earner wait.

Health insurance is the other piece. Medicare starts at 65 no matter when you claim Social Security, so retiring at 62 means covering three years some other way: a spouse's employer plan, COBRA, or the marketplace. And if you aren't collecting Social Security by 65, Medicare won't enroll you automatically. Sign up during the seven-month window around your 65th birthday unless you're covered through a current job, or you can owe a Part B penalty for as long as you have it.

If you claim and regret it, there's one undo. Within 12 months, you can withdraw the application and repay everything you and your family received, including Medicare premiums and taxes withheld. It's as if you never filed, and you can only do it once. After full retirement age there's a partial fix as well: you can suspend your check and earn delayed retirement credits until 70.

None of this makes 62 wrong. Serious health problems, a real need for the income, or a lower-earning spouse claiming while the higher earner waits can all make it the right choice. Make the decision on your health, your spouse, your work, and your savings, not on the birthday.

P.S. Once a week, I email the best money article I read, with my take on this week's top Facebook posts and what's new on the Ways to Wealth blog. It's free, and you can sign up on the Ways to Wealth home page.

R.J. Weiss, CFP®



The content shared here is for educational and informational purposes only. It is not personalized investment, tax, legal, or financial advice. Consult a licensed professional before making decisions based on your specific situation.

10/12/2026

Tax Audit: What Triggered One

Understand the Common Triggers for a Tax Audit

Key Points:

* High income: Large deductions or unusual expenses.
* Mismatch: Differences between reported income and third-party data.
* Random selection: Other red flags may also lead to an audit.

Common Triggers

1. High Income
Earning significantly more than average for your industry or occupation.

2. Large Deductions
Claiming unusually high deductions or business expenses.

3. Mismatch in Data
Differences between your tax return and information from employers, banks, or other sources.

4. Random Selection
The IRS may also select you randomly for an audit.

Tax Audit Triggers Can Come From

Your Return, Your Activity, or the IRS

Remember:

It’s not always about owing more tax. Sometimes it’s just a closer look at your numbers.

Stay Compliant. Keep Good Records.

Seek professional tax advice when necessary.

10/12/2026

U.S. STATE IRS TAX BRACKET 2026

No State Income Tax
• AK, FL, NV, NH, SD, TN, TX, WY
• M: No Tax
• WA: No Tax

Flat Income Tax
• AZ: 2.5%
• CO: 4.4%
• GA: 5.19%
• ID: 5.3%
• IL: 4.95%
• IN: 2.95%
• IA: 3.8%
• KY: 3.5%
• LA: 3.0%
• MI: 4.25%
• MS: 4.0%
• NC: 3.99%
• OH: 2.75%
• PA: 3.07%
• UT: 4.5%

Progressive Tax
AL, AR, CA, CT, DE, HI, KS, ME, MD, MA, MN, MO, MT, NE, NJ, NM, NY, ND, OK, OR, RI, SC, VT, VA, WV, WI + DC

(26 states + D.C.)

Select States with Top Marginal Rates
• California — 13.3%
• Hawaii — 11.0%
• New York — 10.9%
• New Jersey — 10.75%
• Oregon — 9.9%
• Minnesota — 9.85%
• Massachusetts — 9.0%
• Vermont — 8.75%

Tax Bracket Comparison Example

State | Single (10%) | Married (10%) | Top Rate
California | $11,001–$44,725 | $22,001–$89,450 | 13.3%
New York | $11,001–$43,950 | $22,001–$87,900 | 10.9%
Texas | $11,000–$44,725 | $22,000–$89,450 | 0% (No State Tax)
Florida | $11,000–$44,725 | $22,000–$89,450 | 0% (No State Tax)
Washington | $0–$0 | $0–$0 | 0% (No State Tax)

No State Income Tax • Flat Tax States • Progressive Tax States

10/12/2026

How to Calculate Child Tax Credit

Financial accounting & commerce

What You Need to Know

* Maximum Credit per Child: $2,000
* Refundable Portion: Up to $1,700
* Non-Refundable Portion: $300
* Income Limits: Varies by filing status

Step-by-Step Calculation

Step 1: Count Your Qualifying Children

Find your total number of qualifying children (up to 3 in this example).

Example: 3 children × $2,000 = $6,000

Step 2: Subtract Any Phase-Out Amount

Subtract any phase-out amount if your income exceeds the applicable income threshold.

Example: $6,000 − $0 = $6,000 (if you’re below the limit).

Step 3: Determine Your Allowed Credit

Calculate the refundable and non-refundable portions, subject to the applicable limits and eligibility rules.

Example: $6,000 (illustrative amount before applying all eligibility limits).

Final Child Tax Credit: $6,000

The child tax credit can lower your tax bill and may help you receive a refund, putting more money back in your family’s pocket.

Note: The figures above are illustrative, not a guarantee of the credit you can claim. The actual Child Tax Credit depends on the tax year, qualifying-child requirements, income, filing status, and other eligibility rules. The refundable amount is subject to additional requirements.

10/12/2026