Todd's Accounting Service

𝙒𝙝𝙖𝙩 𝙙𝙤 𝙄 𝙙𝙤 𝙞𝙛 𝙄 𝙝𝙖𝙫𝙚 𝙪𝙣𝙥𝙖𝙞𝙙 𝙩𝙖𝙭𝙚𝙨 𝙛𝙧𝙤𝙢 2025?

If you still owe from 2025 or earlier, you don’t have to keep guessing at what to do next.

Start by getting clear on:
• Which years have balances
• Whether returns are missing
• What notices you’ve received
• What payments are already set up
• What the IRS or state says you owe

Before you send another payment or put it off again, let’s look at the full picture together.

𝙄𝙨 𝙢𝙮 𝙨𝙩𝙪𝙙𝙚𝙣𝙩 𝙡𝙤𝙖𝙣 𝙛𝙤𝙧𝙜𝙞𝙫𝙚𝙣𝙚𝙨𝙨 𝙩𝙖𝙭𝙖𝙗𝙡𝙚 𝙩𝙝𝙞𝙨 𝙮𝙚𝙖𝙧?

For loans forgiven in 2026, the answer depends on which forgiveness program your discharge came from.

Some forgiveness is still tax-free at the federal level, including:
• Public Service Loan Forgiveness
• Teacher Loan Forgiveness
• Death discharge
• Many total and permanent disability discharges

But if your forgiveness comes through a long-term Income-Driven Repayment plan, you may need to plan for a federal tax bill.

If your loans are being forgiven this year, don’t wait until tax time to check your paperwork.

DM us to schedule a time to review your forgiveness program, discharge date, and what it could mean for your return.

Did the job market change your tax situation this year?

If you lost a job, switched roles, picked up gig work, or had your hours cut, your tax picture may have changed too:

• Unemployment and severance can be taxable
• Gig or 1099 income doesn’t have automatic withholding
• Multiple W-2s in one year can throw off withholding
• A household income change can affect what you owe

If your income shifted this year, don’t wait until filing season to find out whether you paid enough tax.

Labor market adds 172,000 jobs in May, but growth remains uneven Most industries saw no changes or declines in total employment.

𝙒𝙝𝙤 𝙜𝙚𝙩𝙨 𝙩𝙤 𝙘𝙡𝙖𝙞𝙢 𝙩𝙝𝙚 𝙘𝙤𝙡𝙡𝙚𝙜𝙚 𝙩𝙖𝙭 𝙘𝙧𝙚𝙙𝙞𝙩, 𝙢𝙚 𝙤𝙧 𝙢𝙮 𝙘𝙝𝙞𝙡𝙙?

For the American Opportunity Tax Credit, the answer comes down to whether you claim your child as a dependent. If you do, the credit goes on your return.

That can still be true even if your child paid some of the tuition with a summer job or student loans.

If your child is not your dependent and files their own return, they may be the one who claims the credit instead.

The student also has to meet IRS rules, including being enrolled at least half-time for at least one academic period and pursuing a degree, certificate, or other recognized credential.

Have you checked whether the credit belongs on your return or your student’s?

𝘾𝙖𝙣 𝙄 𝙜𝙚𝙩 𝙖 𝙩𝙖𝙭 𝙘𝙧𝙚𝙙𝙞𝙩 𝙛𝙤𝙧 𝙘𝙤𝙡𝙡𝙚𝙜𝙚 𝙚𝙭𝙥𝙚𝙣𝙨𝙚𝙨?

The American Opportunity Tax Credit can slash up to $2,500 off your tax bill for each eligible student in college. And it includes a "refundable" safety net, so even if you don't owe any taxes at the end of the year, the government will still send you a refund check for up to $1,000 of the leftover credit.

Expenses that 𝗱𝗼 𝗾𝘂𝗮𝗹𝗶𝗳𝘆 for this are tuition, mandatory enrollment fees, required books, and required supplies and equipment. Room and board, meal plans, transportation, parking, and medical insurance 𝗱𝗼𝗻’𝘁 𝗾𝘂𝗮𝗹𝗶𝗳𝘆.

Also, if scholarships, Pell grants, or employer tuition assistance covered part of the cost, that tax-free money has to be subtracted from your qualified expenses.

College costs add up fast. Before you assume you do or don’t qualify, it’s worth checking which expenses actually count.

Contact us to look at this for your specific tax situation.

𝘾𝙖𝙣 𝙄 𝙨𝙩𝙖𝙧𝙩 𝙖 𝙗𝙪𝙨𝙞𝙣𝙚𝙨𝙨 𝙞𝙛 𝙄 𝙨𝙩𝙞𝙡𝙡 𝙝𝙖𝙫𝙚 𝙩𝙖𝙭 𝙞𝙨𝙨𝙪𝙚𝙨 𝙩𝙤 𝙘𝙡𝙚𝙖𝙣 𝙪𝙥?

Yes, and if you’re already thinking like an entrepreneur, we want to help you build on that vision. But before new income starts coming in, it’s important to steady your tax situation first by setting a plan in place for 1) unfiled returns, 2) tax debt, 3) missing records, 4) payment plans, and 5) upcoming tax deadlines.

This isn't meant to hold you back, but to help you start with a clearer picture, fewer surprises, and a better plan for the business you want to build.

If you’re ready to take the idea seriously, let’s get the tax side cleaned up so you can move forward with more confidence.

𝘾𝙤𝙪𝙡𝙙 𝙨𝙢𝙖𝙡𝙡 𝙧𝙚𝙘𝙤𝙧𝙙𝙠𝙚𝙚𝙥𝙞𝙣𝙜 𝙢𝙞𝙨𝙩𝙖𝙠𝙚𝙨 𝙥𝙪𝙩 𝙢𝙮 𝙣𝙤𝙣𝙥𝙧𝙤𝙛𝙞𝙩 𝙖𝙩 𝙧𝙞𝙨𝙠?

Yes, the IRS wants to see that nonprofit funds are being used for the organization’s tax-exempt mission, not for private benefit.

That means the records need to clearly show:
• What money came in
• Where it went
• Whether restricted funds were used as promised
• Whether expenses were tied to the mission
• Whether Form 990 matches the actual activity

A nonprofit audit doesn’t always start with fraud. Sometimes it starts with records that look incomplete, inconsistent, or hard to explain.

If your organization’s records feel messy, reach out before it turns into a bigger issue.

Entrepreneurship is a big thing in our economy right now, especially with the major influx of content creators over the past few years.

But being an entrepreneur doesn't mean you need to wait for a big “aha” moment to start a successful business.

Sometimes a business idea simply comes from paying attention, asking better questions, and finding a need to fill.

Want help processing your business idea? Let's talk it out in the comments.

https://www.inc.com/yuvaltal/you-dont-need-a-eureka-moment-to-start-a-company/91285000

𝘾𝙖𝙣 𝙄 𝙨𝙩𝙞𝙡𝙡 𝙛𝙞𝙡𝙚 𝙖𝙨 𝙖 𝙨𝙞𝙣𝙜𝙡𝙚 𝙥𝙚𝙧𝙨𝙤𝙣 𝙚𝙫𝙚𝙣 𝙞𝙛 𝙄 𝙜𝙤𝙩 𝙢𝙖𝙧𝙧𝙞𝙚𝙙 𝙩𝙝𝙚 𝙨𝙖𝙢𝙚 𝙮𝙚𝙖𝙧?

No. Even if you’re legally married on December 31, the IRS considers you married for that tax year.

That means your federal filing options are: Married Filing Jointly or Married Filing Separately.

You don’t get to choose single just because you were single for part of the year.

If your relationship status changed this year, your tax filing status needs to change too.

Want to know whether filing jointly or separately makes more sense for your situation? Schedule an appointment and let’s talk it through.

Some great low-start-up cost business ideas in here, but remember... Starting a business also means bigger tax responsibility. Let's talk about what the IRS expects of you as a business owner and how to set you up for success with the right tax structure.

7 Small-Business Ideas You Can Start for Less Than $10,000 Not all startups require a lot of capital to launch. These small-business ideas come with minimal startup costs.