Accounting and Accountability

2026 tax changes are here and some could cost you thousands if you're not prepared. Tammy sits down with Markland, CPA, Supervisor at Faw Casson, to break down the biggest tax updates for 2026 in plain English. In this episode of Accounting and Accountability, we cover everything from 529 plan contribution limits and proposed Roth IRA rollover changes to the adoption credit increase, Medicare Part B rebates, and new IRS rules on premium tax credits and ghost preparers. Whether you're a business owner, parent, retiree, or just someone who wants to keep more of your money, these updates affect you. 📋 WHAT'S COVERED: • 529 Plan changes: $19,000 annual gift limit, superfunding up to $95,000, proposed elimination of the $35,000 Roth IRA rollover cap • Adoption Tax Credit: Increased to $17,670 for 2026, with $5,120 refundable • Medicare Part B Rebates: Are they taxable? (Spoiler: No) • Premium Tax Credit (PTC): Major repayment rule change starting with 2026 returns • Charitable Giving & QCDs: Qualified Charitable Distributions up to $111,000 for ages 70½+ • Social Security 2026: Wage base jumps to $192,300, 3.6% COLA increase • IRS Compliance: Online payment options, lower credit card fees, and the crackdown on ghost tax preparers

October 15 Tax Extension Deadline:  What taxpayers should understand about the final individual income tax filing deadline and the important difference between an extension to file and an extension to pay. Saver's Credit vs. Saver's Match: What's Changing in 2027? The current retirement tax credit is being replaced by a new government retirement contribution program. Who could benefit, how the match differs from a tax credit, and what taxpayers should prepare for. New Charitable Tax Deductions for 2026 You may be able to deduct charitable contributions even if you take the standard deduction. We discuss the new opportunity, qualifying donations, and why proper documentation is essential. Is Overtime Pay Tax-Free in 2026? Not exactly. We explore how the overtime deduction works, why not all overtime qualifies, and what employees should look for on their W-2. Business Vehicle Deductions and IRS Audit Red Flags Claiming significant vehicle expenses? A recent Tax Court case highlights the importance of mileage logs, business-use documentation, and maintaining reliable records. New Tax Opportunities for Farmers Selling Farmland A potential tax-planning advantage allows qualifying farmers to spread tax payments on certain farmland sales over multiple years. Mortgage Debt Forgiveness: A Tax Break That Expired Homeowners with forgiven mortgage debt may face unexpected tax consequences in 2026. We discuss why the expiration matters and the exceptions that may still apply. Trump Accounts: New Savings Opportunities for Children What parents should know about children's savings accounts, the government's initial contribution for eligible children, and steps families may need to take. IRS Mobile App, ID.me & Online Tax Payments The IRS is expanding digital access to taxpayer information. Learn how its mobile app and online account services can help taxpayers manage payments, review records, and stay organized.

Self-employment tax & limited partners — The IRS is challenging the self-employment tax exemption for LLC limited partners, especially those in management roles, with courts siding with the IRS October 15th tax deadlines — Extended deadlines for personal 1040 returns, C corporation returns, SEP IRA funding, and excess IRA contribution withdrawals FinCEN Form 114 (FBAR) — Filing requirements for foreign financial accounts exceeding $10,000 and the steep penalties for non-compliance Educator expense deduction — Increased to $350 per teacher (up to $700 for married couples) and expanded to include preschool teachers Student loan interest deductibility — Parents paying children's student loans can't deduct the interest unless they're legally liable on the debt IRS FAQs as legal authority — IRS frequently asked questions don't constitute binding legal precedent; reliance on them is limited Excessive refund claim penalty — A 20% penalty that may apply to excessive refund claims Employee Retention Credit (ERC) updates — ~14,900 claims still pending in various stages of IRS review Excess Social Security withholding — Employees who worked multiple employers and exceeded the 2026 wage base ($184,500) can claim the excess on their 1040 Self-employed health insurance & Medicare premiums — Medicare premiums can be deducted as self-employed health insurance for S corp owners and LLC members if properly reported 1040 changes — New above-the-line charitable deduction for non-itemizers (up to $2,000 for joint filers) and Schedule A itemized deduction updates Proposed stimulus checks — Discussion of a proposed $5,000 stimulus contingent on Republican mid-term election results, with concerns about budget deficit impact 2026 tax brackets — Seven brackets unchanged since 2018, with the top bracket starting at $768,700 (joint) / $640,000 (single) Proposed new income tax brackets — Roosevelt Institute income-growth statistics and a proposal for up to seven new upper-income brackets reaching a top rate of 70% Tribal tax credit scam warning — Alert about a new scam involving fake tribal tax credits being sold to taxpayers

In this episode:  *]:pointer-events-auto R6Vx5W_threadScrollVars scroll-mb-[calc(var(--scroll-root-safe-area-inset-bottom,0px)+var(--thread-response-height))] scroll-mt-[calc(var(--header-height)+min(200px,max(70px,20svh)))]" dir="auto" data-turn-id= "request-WEB:4ae858d5-4857-4657-9f63-f6eeba5d5454-0" data-turn-id-container= "request-WEB:4ae858d5-4857-4657-9f63-f6eeba5d5454-0" data-testid= "conversation-turn-2" data-turn="assistant"> Rehoboth Office News — Our upcoming open house and new location. Federal Estate Tax — Who may still be affected and where planning can help. Offers in Compromise — When the IRS may accept less than the full tax debt. Taxpayer Advocate Service — Help when an IRS issue stalls. Tax Fraud and Filing Deadlines — Why the usual statute of limitations may not apply. Net Investment Income Tax — The surtax that can catch investors and rental property owners. Late S Corporation Elections — What happens when the filing deadline is missed. IRS Online Accounts — Digital tools for payments, notices, transcripts, and more. IRS Audit Activity — What declining audit numbers mean for taxpayers. Maryland Tax Notices — Why some businesses are receiving questionable notices.   _:empty]:hidden">      

In this episode: IRA Rollovers — Rolling over traditional 401(k)s and IRAs, converting traditional IRAs to Roth IRAs, required minimum distributions, and estate planning considerations. Natural Disaster Tax Relief — New federal legislation easing casualty loss write-offs for qualified disaster victims, including timing and eligibility details. Corporate Transparency Act Update — Final ruling on beneficial ownership reporting requirements and what it means for US companies. Cybersecurity & Scam Prevention — Ongoing threats from cyber thieves targeting taxpayer data, reminders to use secure portals, and general vigilance against phishing and fraud. Proposed Restrictions on Refundable Tax Credits — Proposed regulations that would deny certain refundable credits (EITC, child tax credit, etc.) to immigrants who are not qualified aliens, and the legal challenges ahead.

In this episode:  IRS Oversight of Unenrolled Tax Preparers Overtime Pay Tax Deduction Update Congressional Tax Proposals to Watch Tax Court Case: Customer-Funded Improvements IRS.gov Business Tax Account Expansion Attorney's Fees and Settlement Tax Traps New Cryptocurrency Scam Warning Improper Refundable Credit Payments Delaware Department of Labor IT Fee

In this episode: Inflation-indexed IRS deductions, credits, and thresholds for 2026. Non-indexed thresholds that haven't changed in decades (e.g., home sale gain exclusion). New above-the-line charitable deduction for non-itemizers. Rules for deducting donated vehicles. Conservation easements and farmland preservation. Tax treatment of donated timeshares and vacation home rentals. Qualified opportunity zone capital gains deferment. Health insurance marketplace premium tax credit pitfalls. Upcoming tax filing deadlines. IRS interest vs. penalty abatement rules.

In this episode: Hobby loss rules – refresher on when the IRS may reclassify a business as a hobby. Trump accounts – contributing up to $5,000 for a minor without triggering a gift tax filing. Gift tax basics – $19,000 annual exclusion, filing requirements above that, and the $15M lifetime exemption. Gambling loss changes – losses now deductible only up to 90% of winnings (previously 100%), and only if itemizing. Online sports betting – winnings are taxable income regardless of platform. Standard mileage rate increase – 76 cents/mile for July–Dec 2025 vs. 72.5 cents for Jan–June. Foreign bank account disclosure – steep penalties for not reporting foreign accounts/access to funds. IRS penalty relief – automatic first-time penalty abatement for compliant taxpayers (no longer needs to be requested). IRS penalty statistics – $1.25 trillion assessed in 2025, 92% from unpaid payroll taxes, with most later abated. Maryland's new tax portal – launching September 1st, with a blackout period and no penalties during the transition.

In this episode: Premium tax credit changes affecting Marketplace health coverage enrollees. Long-term care insurance premium deductions and new retirement plan withdrawal rules. A proposed Newborn Tax Credit and updates to ABLE accounts. IRS partnership audit trends and lingering ERC (Employee Retention Credit) claim backlog. A rundown of current IRS-impersonation scam tactics targeting seniors.

In this episode: Federal Scholarship Tax Credit (2027) — Up to $1,700 non-refundable credit for K–12 scholarship donations; no income limits; requires state opt-in Cryptocurrency staking rewards — Tokens taxable as income upon receipt; deferral legislation proposed but not yet law 1099-DA reporting (2027) — Brokers must report digital asset sales; provide all 1099s to your preparer Charitable contribution rules — Cash must be documented; GoFundMe not deductible; large non-cash donations require appraisals $4.2M charitable deduction denied — Tax court disallowed due to inadequate documentation Hobby loss rules — Losses only deductible if activity is run with genuine profit motive Family limited partnership discounts — Court upheld IRS challenge; deemed tax-motivated with no business purpose Estate tax Form 706 & closing letters — Portability elections, new request fee, and 2–3 year processing delays 2027 Social Security wage base — Increases to $190,200; effectively a tax hike for higher earners Amended returns (Form 1040-X) — 3-year filing window; e-file for faster refunds IRS workforce decline — Staffing down 28%; enforcement agents down 33%; fewer audits and slower service