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Showing posts with the label Tax Filing 2025

IRS Audit Triggers in 2026: Small Errors That Flag Returns

IRS Audit Triggers in 2026: Small Errors That Flag Returns IRS Audit Triggers in 2026: Small Errors That Flag Returns TL;DR Summary Most “audit triggers” in 2026 are automated mismatches, not in-person audits. Small filing errors can flag returns when IRS data doesn’t match third-party reports. Careful reconciliation and quick responses to IRS notices can reduce risk. Many taxpayers worry that a minor mistake will automatically lead to an IRS audit. In reality, most issues that feel like audits begin with automated systems comparing what you reported against information sent to the IRS by employers, banks, brokers, and payment platforms. In 2026, these automated checks remain one of the most common reasons tax returns are flagged. While that can lead to additional tax and interest if left unresolved, many cases are fixable when addressed early. What Changed in 2026 and Why It Matters The biggest factor in 2026 is not a single ne...

2026 IRS Tax Changes: What to Do Before You File in 2025

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2026 IRS Rule Changes Most Taxpayers Will Miss (And Pay For) A lot of people assume tax changes are obvious: a new credit, a new form, a big headline. But the most expensive IRS changes are often the “quiet” ones: inflation-adjusted limits, reporting threshold shifts, and rules that change how the IRS matches your return against what third parties report. Below are the 2026 IRS changes (and 2026-adjacent changes that hit your filing season) that many taxpayers will overlook—then feel later through a smaller refund, a bigger balance due, or a surprise IRS notice. (Sources: IRS inflation adjustments for tax year 2026, IRS guidance on 1099-K thresholds, IRS digital asset reporting details, and CRS summary of TCJA expirations.) Don’t wait until filing week. Use the checklist in this post to review what changed for 2026 and reduce “avoidable” tax overpayments. Jump to the 2026 check...

2025 IRS Standard Deduction Increase: Who Benefits Most?

2025 IRS Standard Deduction Increase: Who Benefits and How Much? TL;DR Summary: The basic standard deduction for tax year 2025 (returns filed in 2026) rises to $15,750 for singles, $23,625 for heads of household, and $31,500 for married filing jointly. A new bonus deduction for seniors (age 65 +) of $6,000 applies on top of the standard deduction, through tax year 2028. The increase benefits nearly all taxpayers who claim the standard deduction instead of itemizing — especially those with relatively low to moderate income. The primary gain is the tax-free income shield: the higher deduction means less taxable income, which reduces tax owed—though the actual dollar tax-savings depends on your marginal tax rate. However, the increase is modest compared to some other tax changes, and high-income taxpayers who already itemize may see less direct benefit. Overview of the 2025 Standard Deduction The Internal Revenue Service (IRS) has set the i...

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