Credits & Deductions

  • Back-to-School Tax Planning: Education Credits and New Rules to Know

    Back-to-school season is a good time to remind clients that education expenses can have tax implications. The American Opportunity Tax Credit (AOTC) and Lifetime Learning Credit (LLC) remain two important federal tax benefits for higher education. Recent law changes also expand some education-related tax benefits, including qualified expenses for 529 plans and employer assistance with…

  • Updated Guidance on State and Local Tax (SALT) Deductions — What Tax Pros Need to Know

    As the 2025 tax filing season approaches, tax professionals should be prepared to advise clients on significant changes to the State and Local Tax (SALT) deduction rules — changes that materially impact itemized deductions for individuals and complicate planning for high‑income and high‑tax‑state taxpayers. Overview of New SALT Deduction Cap For tax years beginning in 2025 through…

  • Qualified Business Income Deduction (QBI): A Guide for Tax Professionals

      The Qualified Business Income (QBI) deduction, also known as the Section 199A deduction, allows many pass-through business owners to deduct up to 20% of their qualified business income on their tax return. This guide explains what QBI is, how to calculate the deduction, which businesses qualify (and don’t), and special considerations like real estate…

  • EIC Eligibility Updates: What Do Tax Professionals Need to Know

    As tax professionals prepare for the 2025 filing season, staying up to date on changes to the Earned Income Credit (EIC) is essential—not just for compliance, but for maximizing client refunds and minimizing audit risk. The IRS has issued several adjustments for tax year 2024 (filed in 2025), affecting income thresholds, credit amounts, and due…

  • Home Energy Credits Can Help Maximize Client Tax Savings

    Are your clients aware that making energy-efficient upgrades to their homes could translate into significant tax savings? These credits, expanded by the Inflation Reduction Act of 2022, offer incentives to homeowners and renters alike for investing in energy improvements. What Clients Need to Know About Home Energy Credits Taxpayers can tap into two key credits:…

  • Time Running Out to File for Recovery Rebate Credit

    The window for claiming a pandemic-driven tax credit is still open to taxpayers who didn’t take advantage of it during the main Covid outbreak. But closing dates are approaching, making filing a claim for eligible taxpayers (tax years 2020 or 2021) a priority for tax preparers.  For a historical background, we have to go back…

  • IRS Updates Clean Vehicle Credit Guidance

    As electric cars become more common on American roads, fully electric autos (termed “clean vehicles” by the Internal Revenue Service) are now showing up in the used car markets.   Owners of new electric vehicles are already able to claim the Clean Vehicle Credit for 2023, but starting in 2024, a credit will also be offered…

  • IRS Imposes Moratorium on Improper Employee Retention Credit Claims Amid Rising Fraud Concerns

    As of last week, the Internal Revenue Service (IRS) has taken decisive action to address concerns regarding the improper filing of Employee Retention Credit (ERC) claims, announcing a moratorium on new claims through at least the end of the year. This decision is aimed at protecting unsuspecting tax businesses from falling prey to scams that…

  • IRS Highlights Work Opportunity Tax Credit

    It’s a tight job market out there, and many employers are struggling to recruit and retain qualified employees to maintain operations. While tax pros can’t provide employees for their clients’ businesses, they can explain tax benefits like the Work Opportunity Tax Credit (WOTC). This credit is designed to reward employers who hire long-term unemployment recipients…

  • IRS Updates 2021 RRC FAQs

    The Internal Revenue Service is continuing in its effort to give taxpayers the very latest information right up to the end of tax season, by updating its frequently asked questions (FAQs) for the 2021 Rebate Recovery Credit a second time this year. The updated portions are spelled out in Fact Sheet FS-2022-27 on the IRS…