Angela's Taxes, LLC, Angela L Wadsworth, CPA

09/26/2026

09/24/2026

If you're paying higher education costs for yourself, a spouse or a dependent, you may be eligible to save some money with education tax credits or the Tuition and Fees Deduction.

Here are some facts about tax credits for higher education.

The American Opportunity Tax Credit (AOTC) is:
Worth a maximum benefit up to $2,500 per eligible student.
Only for the first four years at an eligible educational or vocational institution.
For students pursuing a degree or other recognized education credential.
Partially refundable. People can potentially get up to $1,000 back.
The Lifetime Learning Credit (LLC) is:
Worth up to $2,000 per tax return, per year, no matter how many students qualify.
Available for all years of postsecondary education and for courses to acquire or improve job skills.
Available for an unlimited number of tax years.
For a complete explanation of all education benefits, read IRS Publication 970, Tax Benefits for Education.

09/22/2026

Parents of U.S. babies born in 2025 through 2028 can elect a $1,000 contribution for the child’s Trump Account when they complete Form 4547 through their Individual Online Account. Get started at irs.gov/accounts

09/22/2026

Caring for a family member or relative? Understand the special tax rules

Family members who are paid to take care of a loved one may have tax responsibilities. This depends on whether they are considered an employee or provide their services as their own business.

Let’s go over the special rules of being a family caregiver.

When a caregiver is considered an employee
A caregiver is someone who performs in-home services for elderly or disabled individuals. Generally, they are considered an employee and the person being cared for is considered the employer. This could make them responsible for employment taxes. However, there are some cases when the employer may not owe employment taxes. Some examples are when the caregiver is:

Their spouse
Their child under the age of 21
Their parent, unless an exception applies
An employee who is under the age of 18 at any time during the year, unless an exception applies
It’s important to know that even if they don’t owe employment taxes, they are still required to report the caregiver’s compensation on Form W-2. See Table 1, “Do You Need to Pay Employment Taxes” on page 5 of Publication 926, Household Employer's Tax Guide, for more information.

When a caregiver isn’t considered an employee
Sometimes, caregivers aren’t considered employees, but they are still required to report the compensation as income on their Form 1040 or 1040-SR. They may also be required to pay self-employment tax depending on the facts and circumstances.

Here are some examples of when a family member caregiver typically wouldn’t owe a self-employment tax:

If a family member caregiver is paid by an insurance company to take care of their spouse. The taxpayer would still be required to report the income though.
If a family member caregiver received income from a state agency to care for their grandchildren so their daughter could work. Again, the taxpayer would still be required to report any income.
When self-employment tax may apply
If the caregiver is engaged in a trade or business providing care services, they would be required to pay self-employment tax. For example:

A caregiver received income from a state agency to care for their grandmother, and they operate a sole proprietorship adult day-care business for multiple clients, including their grandmother, in their home. The taxpayer would owe self-employment tax since the taxpayer is engaged in a trade or business of providing care giving services as a sole proprietor operator of an adult day care. The taxpayer must report the full amount of the payment as income on both Schedule C and Schedule SE.

09/20/2026

The Tax Debt Help tool walks you through a series of questions. Based on your anonymous responses, the tool offers potential payment and resolution options available to you. Learn more at: www.irs.gov/taxdebthelp

09/15/2026

If you make quarterly estimated tax payments, mark your calendar. The third estimated tax payment for 2026 is due September 15.

Self-employed individuals, retirees, investors, and others who have income that isn’t subject to withholding may need to make estimated tax payments. Making payments on time can help taxpayers avoid an unexpected tax bill or possible penalties.

Learn more about estimated taxes from the : www.irs.gov/estimatedtaxes

09/15/2026

Estimated taxes aren’t just for the self-employed

Typically, people who are self-employed pay their federal income tax by making estimated tax payments. However, they aren’t the only ones that may need to pay estimated tax. Federal income tax is a pay-as-you-go tax. Which means the tax must be paid as income is earned or received during the year. The two ways federal taxes are paid are either through withholding or estimated tax.

Taxpayers who receive income from sources not subject to withholding or don’t have enough withheld, may have to make estimated tax payments. The next estimated tax payment due date is Sept. 15. Let’s take a closer look at who may have to pay estimated tax to ensure they are meeting their tax obligations.

Who may pay estimated tax
Self-employed individuals typically pay their tax this way. Even if a taxpayer isn’t self-employed, they still may have to pay estimated tax if they receive income from sources such as:

Interest
Dividends
Alimony
Capital gains
Royalties
Rents
Prizes and awards
Generally, individuals, including sole proprietors, partners, and S corporation shareholders, must make estimated tax payments if they expect to owe tax of $1,000 or more when their return is filed. Estimated tax is used to pay not only income tax but other taxes such as self-employment tax and alternative minimum tax.

Ways to pay
Taxpayers can pay online, use Form 1040-ES and pay by mail, or by phone. Additionally, individuals can pay through their IRS Individual Online Account, where they can also see their payment history and other tax records.
Businesses can now make most common business tax payments, including estimated taxes and federal tax deposits, through their Business Tax Account or Direct Pay for businesses.

Most taxpayers who make estimated tax payments pay on a quarterly basis. However, they can also be made weekly, bi-weekly, monthly, etc. if they have paid enough in by the end of the quarter. Visit IRS.gov/payments to view all the options. For additional information, refer to Publication 505, Tax Withholding and Estimated Tax.

Avoid penalties
Taxpayers who didn’t pay enough tax during the year, either through withholding or by making estimated tax payments, may have to pay a penalty. Generally, the IRS can figure this penalty for them.

Knowing the requirements and paying on time is key to avoiding any penalties.

Make payments, view your account or apply for a payment plan with the IRS.

09/10/2026

IRS reminder: Direct Pay offers free, easy way to pay taxes

IR-2026-109, Sept.10, 2026

WASHINGTON — The Internal Revenue Service today reminded taxpayers who have bank accounts that Direct Pay offers a free, secure way to pay federal taxes directly from a checking or savings account.

Direct Pay is available on IRS.gov and allows taxpayers to make one-time payments from their bank account without signing in or paying fees. Taxpayers answer a few basic questions to verify their identity, and no registration is required. For individual payments, Direct Pay uses information from a prior-year tax return selected by the taxpayer. For business payments, Direct Pay verifies the business name and employer identification number (EIN) against IRS records.

"As the IRS continues to support the broader federal effort to modernize payments to and from the government, Direct Pay gives taxpayers a free, secure, and convenient way to pay directly from a bank account,” said IRS Chief Executive Officer Frank J. Bisignano. "This is part of our ongoing effort to make it easier for taxpayers to interact with the IRS and take care of their tax responsibilities online.

Taxpayers can use Direct Pay for individual tax payments, including balance due payments, estimated tax payments, amended return payments, extension payments, and other federal income tax payments. If taxpayers are married and file jointly, they must enter information for the spouse whose name is listed first on the tax return when they make their payment. Business taxpayers can use Direct Pay to make balance due payments, federal tax deposits, and other federal tax payments.

With Direct Pay, taxpayers can quickly handle many common payment tasks online and choose the payment date that works best for them. Direct Pay allows taxpayers to:

Make a same-day payment or schedule a payment up to 365 days in advance.
Receive a confirmation number and the option for email confirmation.
Change or cancel a scheduled payment up to two business days before the payment date.
Pay directly from a U.S. financial institution using bank routing and account numbers'
Direct Pay cannot be used to receive tax refunds by direct deposit. Taxpayers who have never filed a tax return, or who have not filed in more than six years, may need to use another payment option.

Each Direct Pay payment must be less than $10 million. Taxpayers who need to make payment of $10 million or more can use a same-day wire or the Electronic Federal Tax Payment System (EFTPS), if they are already enrolled.

To make a payment, taxpayers can visit Direct Pay with bank account and select “Pay individual tax” or “Pay business tax.” Before making a payment, taxpayers must verify their identity by providing individual or business information. For more information about payment types, scheduling, confirmation numbers, and other payment options, visit Direct Pay Help.