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For tax year 2026 you can deduct unreimbursed medical and dental expenses only if you itemize, and only the portion that exceeds 7.5% of your adjusted gross income (AGI) (IRS Topic No. 502; Publicatio...
The IRS updated two administrative items in 2025 that affect how taxpayers substantiate medical expense deductions: the out‑of‑pocket health care “national standards” took effect April 21, 2025 and le...
Filing as Married Filing Separately (MFS) disqualifies a taxpayer from claiming the new senior deduction created by the 2025 law, and historically MFS filers face far less favorable treatment of Socia...
The basic rule for claiming the medical expense deduction — that you may deduct unreimbursed medical and dental expenses that exceed 7.5% of your adjusted gross income (AGI) when you itemize — remains...
The One Big Beautiful Bill (OBBB/OBBBA) does not create a new standalone “property tax” but it changes how much state and local taxes — including property taxes — taxpayers can deduct on federal retur...
There is no single, current federal program that broadly gives Canadian employers an ongoing tax break simply for hiring immigrants; some past provincial proposals and niche provisions have existed or...
Alaska emerges repeatedly as the state with the , with WalletHub reporting residents pay about in combined taxes; several states that levy — including Alaska and Florida — also rank among the lowest b...
Yes — you can change your 2025 estimated tax payments midyear if your income drops: the IRS expressly expects taxpayers to “make adjustments both for changes in your own situation” and to revise quart...
Available sources show the medical-expense deduction floor remained at 7.5% of adjusted gross income (AGI) for both the 2025 and 2026 tax years; Congress made that 7.5% threshold permanent in the Cons...
State rules on residency and domicile determine which state can tax lottery winnings: most states tax winners based on their residence when they claim or receive the prize, but a few states (notably A...
If your prior-year adjusted gross income (AGI) exceeded $150,000, the IRS “prior-year” safe harbor rises to 110% of the total tax shown on last year’s return — meaning you must pay at least 110% of la...
For the 2025 Earned Income Tax Credit (EITC), only "earned income"—wages, salaries, tips, and net earnings from self-employment—counts toward basic eligibility and the credit calculation; investment i...
Yes: multiple practical guides and tax explainers say traditional pre-tax 401(k) contributions lower your taxable income before MAGI is calculated, so they reduce the MAGI figure used for ACA premium ...
For tax year 2026, taxpayers may deduct unreimbursed medical and dental expenses that exceed when they itemize on Schedule A; that baseline rule is consistent across IRS guidance and the tax‑advice ou...
Computing the underpayment penalty for a specific missed 2025 estimated-tax quarter requires three actions: determine the tax that should have been covered for that quarter under the IRS “required ins...
States treat Box 14 entries and employer-paid benefits very differently: Box 14 is an employer-controlled “catch‑all” that often holds state disability, unemployment, or paid‑leave contributions that ...
You can use the 90% current‑year safe‑harbor if your combined withholding and estimated payments equal at least 90% of the tax you will owe for the current tax year; meeting that test shields you from...
You can deduct only the portion of unreimbursed medical and dental expenses that exceeds 7.5% of your adjusted gross income (AGI) and only if you itemize on Schedule A; for example, with $50,000 AGI t...
Errors or omissions on Form 8962 commonly trigger IRS processing rejections, notices (like Letter 5598), or requests for documentation; e-filed returns missing a required 8962 are rejected under busin...
Calculating Modified Adjusted Gross Income (MAGI) from Form 1040 is a routine gatekeeper for many tax credits and benefits, but taxpayers commonly misapply the concept by stopping at AGI or using the ...