If you're self-employed and paying Medicare premiums, you may be able to deduct those premiums on your federal tax return — and you don't have to itemize your deductions to do it. Medicare premiums paid by a self-employed individual can generally be included as part of the self-employed health insurance deduction on Schedule 1 of Form 1040. There is an important limitation, though: the deduction can't be more than the net profit from your business. What About Partners and LLC

If you're helping your child pay off their student loans, you may be wondering if you can claim the student loan interest deduction on your tax return. In most cases, you can't claim the deduction unless you're legally responsible for repaying the loan yourself. But that doesn't necessarily mean the interest deduction is lost. Your Child May Be Able to Claim It The IRS generally treats a situation where a parent pays their child's student loan as if the parent gave the money

If you purchased a new vehicle in 2025, you may have a new tax deduction available to you that could help lower your taxable income. Starting with 2025 tax returns, taxpayers may be able to deduct up to $10,000 in interest paid on a qualifying car loan. The deduction is available whether you take the standard deduction or itemize your deductions. There are, however, a few important requirements you’ll need to meet. Who Qualifies? The vehicle must: Be new, meaning you are the

The IRS has added a new feature to its online individual tax account that may make it easier to provide proof of your tax compliance when you need it. Taxpayers can now download an authenticated Tax Compliance Report (TCR) directly through their IRS online account. The report shows whether you have been keeping up with your federal tax filing and payment requirements. Your Tax Compliance Report can include information such as: Whether your federal tax returns were filed on ti

The IRS has proposed new regulations that could affect whether certain immigrants are eligible to receive some refundable federal tax credits. Under the proposal, undocumented immigrants would no longer be eligible for certain refundable tax credits, including the Earned Income Tax Credit (EITC), the refundable portion of the Child Tax Credit, the American Opportunity Tax Credit (AOTC), and the refundable portion of the Adoption Credit. Who Could Be Affected? The proposed rul

Thinking about moving money from one IRA to another? An IRA rollover can be a useful way to move retirement funds without triggering taxes, but there are some important rules you need to follow. Here are three IRA rollover rules you should know before moving your money. 1. Remember the 60-Day Rollover Rule Generally, if you receive a distribution from your IRA and want to roll the money back into an IRA, you have 60 days to complete the rollover. If you miss that deadline, th

Roth IRAs can be a great way to save for retirement, but there are a couple of five-year rules that Roth IRA owners need to understand. And while they sound similar, they apply to two very different situations. The first rule applies to many more Roth IRA owners and determines whether your earnings can be withdrawn tax-free. The second rule is more specific and applies to certain Roth conversions and early withdrawals. Let's break down the difference. Rule #1: The Five-Year R

If you recently filed your federal tax return and received an IRS CP53E notice, you might be wondering what it means — especially if you weren’t expecting a letter from the IRS. You’re definitely not the only one. The IRS has been sending out more of these notices this year, and some taxpayers are receiving them even when something doesn’t seem to add up. What is a CP53E notice? The IRS generally sends a CP53E letter when your tax return shows that you’re due a refund, but th

Federal School Choice Tax Credit School choice has become a major priority for Republican lawmakers, and one way they are working to expand it is through tax incentives. Instead of using traditional school vouchers, tax credits can encourage people to donate money to organizations that provide scholarships for students to attend private K-12 schools. Many states already have similar programs. In 2020, the Supreme Court also ruled that these scholarship programs can be used to

The IRS continues to make changes to its online services while also warning taxpayers about scams and addressing ongoing issues with refundable tax credits. Here are three recent updates taxpayers and business owners should know about. New Features Added to IRS Business Tax Accounts The IRS has added new features to its online business tax accounts, making it easier for businesses to manage their tax information online. Business owners can use their accounts to view outstandi

Receiving money from a lawsuit or settlement does not always mean you have to pay taxes on it. Whether your settlement is taxable depends largely on why you received the money. Physical Injuries vs. Emotional Distress In general, money you receive because of a physical injury or physical illness is not taxable. However, compensation for emotional distress is generally taxable, with a couple of exceptions. For example, if your emotional distress or mental anguish is directly r

The IRS has made it clear that cryptocurrency staking rewards can be taxable income. In one Tax Court case, a taxpayer argued that the tokens he received from staking should not be taxed right away. However, because he was able to sell the tokens whenever he wanted and there were no major restrictions on them, the court decided that he had control over the tokens. This meant their fair market value counted as taxable income in the year he received them. The IRS also released

If you get your health insurance through the Marketplace and receive a tax subsidy to help lower your monthly premium, it’s important to keep your information updated. Life changes, like getting a new job, losing a job, having a change in your household, or making more or less money than expected, can affect how much of a subsidy you qualify for. For example, if you lose your job and your income goes down, you may qualify for a larger subsidy, which could lower what you pay e

If you’re adopting a child—or planning to adopt—there’s some good news to know about the adoption tax credit. For 2026, the credit has been increased, and part of the credit is now refundable, which could make a significant difference for eligible adopting parents. How Much Is the Adoption Tax Credit in 2026? For 2026, eligible taxpayers can claim a credit for up to $17,670 of qualified adoption expenses per eligible child. Qualified expenses can include costs such as: Adopti

The 2026 tax filing season has gone relatively smoothly for many taxpayers, according to the IRS National Taxpayer Advocate. Most taxpayers were able to file their returns and receive their refunds without significant delays. That’s notable considering the IRS has been dealing with staffing reductions, leadership changes, outdated technology, and other challenges that could have affected the agency’s ability to process returns efficiently. However, not everyone has had the sa

If you receive health insurance through the Marketplace and qualify for a premium tax credit, it’s important to keep your information up to date throughout the year. Your premium tax credit is based on information such as your household income, family size, and other circumstances. If any of these change, your subsidy may change as well. What Changes Should You Report? You should notify the Marketplace if you experience a significant change in your circumstances, including: Y

The IRS is getting ready to make penalty relief a whole lot easier for some taxpayers. Instead of having to call or write the IRS to ask for a first-time penalty abatement, qualifying taxpayers will soon have those penalties waived automatically. The new program, called Automatic Exemption From Penalty (AEP), is expected to roll out sometime this summer and will apply to original 2025 tax returns. If you've been compliant with your tax obligations for the past three years and

IRS Still Working Through Employee Retention Credit Backlog The IRS is continuing to work through a large backlog of Employee Retention Credit (ERC) claims, with approximately 20,600 claims still in the pipeline as of May 30, 2026. The ERC was a COVID-19 relief program designed to provide a refundable payroll tax credit to eligible businesses that experienced certain government-ordered shutdowns or significant declines in gross receipts during the pandemic. Where Are the Clai

The IRS and the Department of Justice continue to increase enforcement efforts targeting undisclosed foreign financial accounts. If you're a U.S. taxpayer with foreign bank or financial accounts, it's important to understand your reporting obligations. If the combined value of your foreign accounts exceeded $10,000 at any point during the year, you're generally required to file FinCEN Form 114, commonly known as the FBAR. While the standard filing deadline is April 15, there'

Donating to charity is a great way to support organizations you care about, but not every charitable contribution comes with a tax deduction. One situation to be especially careful about is donating the right to use your vacation home to a nonprofit organization. Schools, churches, and other nonprofits sometimes accept vacation-home stays as prizes for fundraising dinners, galas, or charity auctions. While this may sound like a good way to support a cause and potentially rece