Accounting & Income Tax Solutions

10/15/2026

https://www.irs.gov/newsroom/irs-announces-tax-relief-for-taxpayers-impacted-by-hurricane-isaias-in-alabama-various-deadlines-postponed-to-feb-4-2027?sid=1857&sln=2&fbclid=IwdGRjcAU9KO9leHRuA2FlbQIxMQBwZG9mAWZkaWQWUQVs1paAJGjYoiiiSrVhId6cunzlpnNydGMGYXBwX2lkDzE3Mzg0NzY0MjY3MDM3MAABHuknjnpXc8ZhCoSos1zOwKe4bH_4XskRHgxF3nL1_YYR1NjC9tEwcQ-fthoY_aem_kNxy38KeN8CBNdgL224azQ

AL-2026-01, Oct. 14, 2026 — The Internal Revenue Service announced today tax relief for individuals and businesses affected by Hurricane Isaias in Alabama that began on Oct. 7, 2026.

10/12/2026

October 15 Filing Extension Deadlines

Taxpayers who timely requested an extension to file their 2025 federal income tax returns generally must file by Thursday, October 15, 2026. The same deadline generally applies to calendar-year C corporations that received an extension to file their 2025 corporate returns (Form 1120).

In addition, U.S. persons with a financial interest in or signature authority over foreign financial accounts whose combined value exceeded $10,000 at any time during 2025, and who are required to file a Report of Foreign Bank and Financial Accounts (FBAR), generally must file by October 15, 2026. The FBAR extension is automatic; no extension request is necessary.

10/05/2026

Up to $5,120 of the Adoption Tax Credit Is Refundable for 2026 – Did You Know?

The Adoption Tax Credit helps eligible families manage qualified costs such as adoption fees, travel, legal services and home studies. In recent years, the credit was nonrefundable: it could reduce a person's federal income tax, but any unused amount generally had to be carried forward.

Under rules that took effect in 2025, part of the credit is now refundable. For tax year 2026, up to $5,120 per eligible child may be refundable, even if the taxpayer owes no federal income tax. Any unused nonrefundable portion may be carried forward for up to five years, but a carryforward cannot become refundable in a later year.

The Adoption Tax Credit is subject to income limits and other restrictions, and the timing of a claim depends on the circumstances of the adoption. A tax professional can help determine whether you qualify and how much credit you may claim.

09/29/2026

Enhanced Tax Credit Can Help Cover 2026 Childcare Costs – Did You Know?

If you pay for care for your child under 13 years of age, or for your spouse or other dependent who requires help with basic self-care, then you may qualify for a federal tax credit. The Child and Dependent Care Tax Credit (CDCTC) can help reduce your federal income tax based on care expenses that you pay in order to work or seek work.

The CDCTC is calculated as a percentage of eligible care expenses. As in the past, the credit is subject to phase-down ranges, meaning that the maximum credit amount may decrease based on a person's adjusted gross income (AGI). However, new rules that took effect this year have significantly increased the maximum credit amount for people with AGIs both below and within the phase-down ranges.

For example, a married couple filing a joint return with an AGI of 75,000-150,000 may qualify for a credit of up to 35% of eligible care costs, up from 20% in 2025. Meanwhile, a single filer with an AGI of $15,000 or less may be entitled to a credit equaling 50% of qualifying expenses. Above $15,000, the rate gradually declines, reaching 35% once AGI exceeds $43,000. A tax professional can help you determine whether you qualify for the CDCTC, and if so, what percentage you may use to figure your credit amount.

09/29/2026

Recognizing Scams: The IRS Does NOT Contact Taxpayers in These Ways

Scammers often claim to represent the IRS in order to steal Americans' identities or money. You can better protect yourself by learning how to distinguish legitimate IRS communications from fraudulent messages or calls. As a starting point, it is important to know that there are some types of messages that the IRS never sends.

With the exception of verification codes for secure online account login, the IRS does not contact people or businesses about tax issues via text or SMS messages. The IRS also does not send messages to taxpayers through social media platforms or chat services.

While the IRS may communicate with a taxpayer via email, the messages will not ask the taxpayer to provide personal or financial information by replying or clicking on a link. All official IRS emails will originate from an address ending in irs.gov. If you are not 100% certain that an email claiming to be from the IRS is legitimate, do not reply and do not click any links in the message. Instead, delete the message and call the IRS directly for more information.

09/29/2026

Hobby or Business - Did You Know?

Recent years have seen a rise in the number of people pursuing “side hustles,” such as delivery driving, dog walking and online craft selling. Many of these activities could be classified as either hobbies or business ventures, depending on how you pursue them. Since different tax rules apply for businesses and hobbies, it is important to know how the IRS will likely classify your side gig. The IRS considers a variety of questions, including:

- Do you depend on the activity for your livelihood?
- Do you pursue the activity in a professional, businesslike manner, and keep detailed records?
- Is the activity currently profitable for you, and if not, is there good reason to believe it will become consistently profitable in future years?
- Do you have the knowledge and skills needed to pursue the activity as a business?
- Do you approach the activity in a way that shows the intent to make a profit, such as changing methods to boost revenues?

In many cases, business income is subject to both income and self-employment tax, whereas hobbies may be subject to income tax. However, pursuing an activity as a business may enable you to reduce your taxable income by deducting business expenses, such as supplies, business vehicle use, and home office costs. A tax professional can help you determine how your side gigs should be classified, and how to account for that classification in your tax planning.

02/02/2026

It’s tax time!

01/29/2026

No tax on overtime. What does that mean? OBBBA - the One Big Beautiful Bill states that as long as your employer follows FLSA then your overtime qualifies BUT it’s not the total of all overtime it’s only the part that’s paid extra and not the base.

An example: you are paid $20 per hour and work OT and are paid time and a half, so $30 and hour. Only the extra $10 qualifies.

What about no tax on tips? There are limits here as well.

Come see us at Income Tax Solutions in Saraland to make sure you get this important tax break.

12/25/2025

Merry Christmas, from our family to yours. 🎄
We are closed for the holidays. We will be back in office in January.

11/27/2025

We are so thankful for each and every one of our clients who support our business and refer us to family and friends. We hope you all have a wonderful and safe Thanksgiving! 🦃🧡