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Working while traveling doesn’t automatically make your trip tax-deductible. The purpose of your travel determines which expenses may qualify as business deductions. The IRS distinguishes between traveling to conduct business and conducting business while traveling. For business owners, freelancers, and remote workers, understanding this difference can help identify legitimate tax deductions while avoiding expenses that the IRS considers personal. Just because you can work fr

October 15, 2026: the extended filing deadline for 2025 individual tax returns. More time to file does not mean more time to pay. Still haven’t filed your 2025 tax return? If you received a valid federal filing extension, your individual return is generally due October 15, 2026. California’s automatic extension for individual returns also generally ends that day. There is still time to get organized—but leave room for questions, corrections, and a careful review. Ready to fin

A business trip can create more than a travel deduction. With the right planning, paying family for legitimate lodging may create a tax benefit for both sides. You travel for business to a city where your parents or another close relative lives. Naturally, you stay with them instead of booking a hotel. And like many people, you may already help your family financially—covering expenses, sending money, or simply giving them something when you visit. Here is where thoughtful ta

IRS Letters Explained: Know What You’re Dealing With Seeing an envelope from the IRS can make anyone nervous. But receiving an IRS letter does not automatically mean you are being audited, and it does not automatically mean the IRS is correct. The IRS sends notices and letters for many different reasons. It may be a simple correction, an income mismatch, an identity-verification request, an audit, an unfiled tax return, a balance due, or a warning about possible collection ac

Business or vacation? When an international trip includes both, the details—and the number of business and personal days—matter. You’re traveling overseas for a legitimate business reason. Maybe you have client meetings in London, a conference in Europe, a supplier visit in Asia, or professional training abroad. Since you’re already making the trip, you decide to stay a few extra days for vacation. So what happens to the tax deduction? Adding vacation days does not automatica

Business education and travel can go together—but a qualifying workshop does not automatically make the entire trip tax-deductible. You find a great professional workshop in New York. Or maybe a photography conference in Miami. Then you see an advanced training program in Hawaii. It is directly related to the business you already have. Naturally, you start wondering: Can I deduct the workshop? What about the flight, hotel, meals, and other travel expenses? Possibly. But befor

Business and vacation on an international trip If you travel for business, you probably think you know what a business day is. You work that day? Business day. You spend the day sightseeing? Personal day. Sounds simple. For international business travel, it isn’t always that simple. The tax rules can treat certain days as business days even when you don’t spend the entire day working. A travel day may count. A weekend may count. A day when you have one required business meeti

Remember: Business travel deductions generally require you to be traveling away from your tax home. Your “tax home” for this purpose is generally your main place of business — not necessarily where your personal residence is located. You traveled mostly for vacation—but while you were there, you met with a client, visited a vendor, attended a business event, or handled other legitimate business. Can you deduct anything? Yes. But there is an important line you cannot overlook.

Military Families: Selling a Home You Turned Into a Rental Military families often have to move because of PCS orders. Instead of selling their home, many choose to rent it out and sell it years later. If this happened to you, there is good news: you may still qualify for the home-sale tax exclusion, even if the property was a rental when you sold it. The special military rule Normally, you must have lived in the home for at least 2 of the 5 years before the sale to qualify f

The SALT limit is now $40,000. As the 2025 tax filing season progresses, we are seeing an interesting pattern in the returns we prepare. Many clients are pleasantly surprised. After years of being limited to a $10,000 state and local tax deduction, some taxpayers can now deduct significantly more of the taxes they actually paid. But we are also seeing the opposite reaction from some higher-income clients. They have heard that the SALT deduction limit increased to $40,000, so

Major 2025 Tax Changes If you extended your 2025 federal individual tax return, the October 15, 2026 filing deadline is approaching. Before you file, take one more look at the tax rules that changed for 2025. Several changes could affect your deductions, credits, tax due, or refund. You may qualify for a deduction or credit that did not apply to your 2024 return. Some of these changes relate to income you received or transactions you completed during 2025, so they can be easy

If Your Business Files 1099s, an Important IRS Change Is Coming If your business files 1099s for independent contractors or other payments, there is an IRS change you should know about before the 2027 filing season. The IRS is retiring FIRE, the electronic system many businesses and tax professionals currently use to submit 1099s and other information returns. Starting with 2026 information returns filed in 2027, filings that previously went through FIRE will move to the IRS’

Hiring Your Child in Your Business Hiring your child can be a legitimate tax strategy for a family business—but simply putting your child on payroll does not automatically create a tax deduction. Your child must actually work for the business. The pay must be reasonable for the work performed. And the arrangement should be handled and documented like a real job. When done correctly, paying your child for legitimate work may create a business deduction while moving income to a

Gift Tax Giving money or property to family in 2026? Learn the $19,000 annual gift tax exclusion, the new $15 million lifetime exclusion, when Form 709 may be required, and what to consider before making a large gift. Giving money to your children, helping with a home purchase, transferring investments, or paying someone’s tuition can be a wonderful way to help. But when the amount becomes significant, a common question comes up: “Will I have to pay gift tax?” Usually, the an

IRS Penalty Relief Is Changing in 2026: What Taxpayers Need to Know Filed your tax return late? Paid your taxes late? Or thought a tax payment was scheduled, only to discover later that it never went through? That can lead to IRS penalties. The good news is that taxpayers who normally file and pay on time may qualify for penalty relief. And starting in 2026, the IRS is making that relief easier. The new program is called Automatic Exemption from Penalty (AEP). What Is Changin

Why You Can Owe an Underpayment Penalty Even When You Pay Your Taxes. “Why am I being charged a penalty? I’m paying my taxes now.” Or even more confusing: “I’m getting a refund. How can I still have an underpayment penalty?” These are common questions during tax season. The reason is simple: taxes are supposed to be paid throughout the year, not just when you file your tax return. If you work for an employer, taxes are usually taken out of every paycheck. You may not even thi

Education Tax Credits Education tax credits can provide valuable savings, but determining whether a client qualifies for the American opportunity tax credit (AOTC) or lifetime learning credit (LLC) requires careful attention to the rules. The following top questions highlight practical issues tax pros should understand to help clients claim allowable education credits, avoid reporting errors and identify planning opportunities. How many credits do you need to qualify? Each cr

FTB Legal Ruling Issued On August 21, 2026, FTB issued Legal Ruling 2026-02, relating to the application of the statute of limitations provisions to overcollected amounts received by FTB through involuntary collection action.   Legal Ruling 2026-02 provides clarity as to what constitutes an overcollection  that can be returned to a taxpayer even if the statute of limitations for filing a claim for refund has expired. Overcollection occurs when FTB collects an excess amount at

California EV Rebate 2026: Get Up to $3,500 Off Your First Electric Vehicle California Makes First-Time EV Ownership More Affordable Buying your first electric vehicle (EV) in California may now be significantly less expensive. The State of California has launched the MyFirstEV program, which provides eligible first-time zero-emission vehicle (ZEV) buyers with an instant rebate of up to $3,500 on a qualifying new vehicle or up to $1,750 on an eligible used vehicle. Unlike tra

~ $1.2 billion in unclaimed refunds for the 2022 tax year remain outstanding. In light of a recent federal court decision, the IRS is urging taxpayers and tax professionals to act promptly, as approximately $1.2 billion in unclaimed refunds for the 2022 tax year remain outstanding. The deadline to claim these refunds is April 15, 2026. Currently, more than 1.3 million individuals have not filed a 2022 federal income tax return, potentially leaving substantial refunds uncollec