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Showing posts with the label US Tax Guide

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...

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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