Blog

Tax Tip | Tax-Deductible Educator Expenses

The educator expense deduction allows eligible teachers and administrators to deduct part of the cost of technology, supplies, and training from their taxes. In this case, an “eligible educator” is a taxpayer who is a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide. They must work at least 900 hours a year at a school that provides elementary or secondary education.

Educators can deduct up to $300 of trade or business expenses not reimbursed by their employer, a grant, or another source. Some examples of covered expenses include:

  • Professional development course fees
  • Books
  • Supplies
  • Computer equipment
  • Other classroom equipment
  • Personal protective equipment (masks, disinfectant, etc.)

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS7

Footnotes and Sources

  1. IRS.gov, November 8, 2024

Weekly Market Insights | Trade and Jobs Cheer Markets in Short Holiday Week

Trade developments and continued momentum pushed all three major averages to modest gains again for a shortened holiday trading week.

The Standard & Poor’s 500 Index rose 1.72 percent, while the Nasdaq Composite Index added 1.62 percent. The Dow Jones Industrial Average advanced 2.30 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, increased 0.19 percent for the week through Thursday.1,2

Stocks Gain on Trade Developments

Stocks continued their momentum from the prior week’s records following Canada’s rescinding of its digital services tax, rising on optimism as investors waited for more news on trade.3

The S&P 500 and Nasdaq took a breather on July’s first trading day, while the Dow Industrials posted a modest gain. Then, stocks rallied after the news of the trade deal with Vietnam, moving past the latest ADP employment report, which showed reduced jobs last month for the first time in two years.4

In a quick retort to the ADP report, a better-than-expected June jobs report from the Bureau of Labor Statistics gave stocks another boost, reassuring investors that the U.S. economy was weathering trade and geopolitical shocks. The S&P and Dow hit record highs as the short trading week ended.5

Jobs Report Mostly Positive

The labor report for June had a few points for investors to cheer. First, employers added 147,000 jobs in June—that was 37,000 higher than economists were expecting. Unemployment ticked down to 4.1 percent from 4.2 percent. Previously reported job gains from April and May were revised upward by 16,000.6

Still, companies are in a “no hire, no fire” mode as they wait to see how trade policy impacts the economy. Caveats to the headline numbers: most gains were seen in government and healthcare. Several other sectors, including manufacturing and professional services, were flat or diminished.6

The takeaway: good news overall, but uncertainty still lingers beneath the employment surface.

Footnotes and Sources

  1. WSJ.com, July 3, 2025
  2. Investing.com, July 3, 2025
  3. CNBC.com, June 30, 2025
  4. WSJ.com, July 2, 2025
  5. CNBC.com, July 3, 2025
  6. WSJ.com, July 3, 2025

Tax Tip | How to Find Tax Help in Other Languages

The IRS currently translates important and helpful tax information using seven languages, including:

  • Spanish
  • Chinese (Traditional)
  • Chinese (Simplified)
  • Korean
  • Russian
  • Vietnamese
  • Haitian Creole

Some multilingual resources include The Taxpayer Bill of Rights, important filing information, e-file resources, forms and publications, and the IRS2Go mobile app.

To access information in these languages, taxpayers can click on the English dropdown tab in the top menu on the IRS.gov home page. The dropdown will list the other languages where taxpayers can view IRS.gov pages. In addition, the IRS offers interpreter services in more than 350 languages.

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS10

Footnotes and Sources

  1. IRS.gov, November 18, 2024

Weekly Market Insights | Markets Hold Broad-Based Rally

Stocks staged a broad-based rally last week on investors’ hopes for a lasting Middle East ceasefire, hitting fresh record highs along the way.

The Standard & Poor’s 500 Index rose 3.44 percent, while the Nasdaq Composite Index added 4.25 percent. The Dow Jones Industrial Average advanced 3.82 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, increased 3.04 percent.1,2

Stocks Push Higher

Last week opened with a rally powered by news of a tamer-than-expected escalation of tensions in the Middle East. Stocks continued their rise after this week’s ceasefire agreement, although Wall Street appeared concerned about whether the truce would remain in place.3,4

Sentiment brightened after the White House played down the approaching July 8 tariff deadlines. Solid corporate earnings, a still-strong labor market, and a recovery in artificial intelligence-related stocks provided some underlying strength to the rally.5

As the week wrapped up, the S&P 500 hit its first new high since February—it marked the fastest-ever recovery from a 15-percent decline for the broad-market index. The tech-heavy Nasdaq Composite also closed at an all-time high.6,7

Economic Data Helped, Too

While trade and Middle East updates powered most of the markets’ rise last week, a few economic bits of news also contributed to the week-long rally. For example, consumer sentiment climbed 16 percent in May—its first increase in six months.8,9

“The improvement was broadbased across numerous facets of the economy, with expectations for personal finances and business conditions climbing about 20% or more,” the University of Michigan said in a statement.

Footnotes and Sources

  1. WSJ.com, June 27, 2025
  2. Investing.com, June 27, 2025
  3. CNBC.com, June 23, 2025
  4. CNBC.com, June 24, 2025
  5. WSJ.com, June 18, 2025
  6. WSJ.com, June 27, 2025
  7. WSJ.com, June 27, 2025
  8. WSJ.com, June 24, 2025
  9. UMich.edu, June 27, 2025

Tax Tip | How Tax Transcripts Can Help You File an Accurate Tax Return

The IRS has a few resources to help you file an error-free return. They suggest making an online account to see estimated tax payments, prior year adjusted gross income, and more.

They also offer the option to request a tax transcript online. There are five types of tax transcripts, each used for different purposes, so make sure to see which one best fits your needs. A Tax Return Transcript, for example, shows most line items from your original Form 1040. You can request a tax transcript online, by mail, or by phone.

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS9

Footnotes and Sources

  1. IRS.gov, December 5, 2024

Weekly Market Insights | Conflict Fears Rattle Markets; Fed Holds Steady

Stocks were mixed during the holiday-shortened trading week as uncertainty over conflict in the Middle East weighed on investors.

The Standard & Poor’s 500 Index slipped by 0.15 percent, while the Nasdaq Composite Index rose by 0.21 percent. The Dow Jones Industrial Average was flat (+0.02 percent). The MSCI EAFE Index, which tracks developed overseas stock markets, declined 1.54 percent.1,2

Stocks Rise, Then Slump

Stocks opened higher, and oil prices fell at the start of the week as investors hoped Middle Eastern tensions would ease.3

However, as investors parsed through updates on the conflict, stocks fell over ongoing uncertainty. Conflicting statements from those involved, as well as from world leaders, contributed to the uncertainty.4

Midweek, stocks rallied ahead of the Fed’s interest rate decision. Markets seemed to dismiss news that housing starts dropped unexpectedly to their lowest level in five years.

The Fed held short-term rates steady. Stocks moved up and down during the Fed Chair’s press conference before ending the trading session slightly down ahead of Thursday’s stock market holiday.5

Following the holiday, anxious investors refocused on geopolitical tensions and developments. As the week closed out, investors appeared to take a risk-off approach heading into the weekend.6

The Fed Holds Rates Steady

As expected, the Federal Reserve kept the Fed funds rate at its target range of 4.25 percent and 4.5 percent. However, the central bank did suggest it may adjust rates later this year, and policymakers expressed concerns about inflation and the outlook for gross domestic product.

Following the decision, Fed Chair Powell said policymakers are “well positioned to wait” before moving on short-term rates. Powell indicated that trade policy has clouded the inflation outlook, making policymakers concerned about consumer prices.7,8

Footnotes and Sources

  1. WSJ.com, June 20, 2025
  2. Investing.com, June 20, 2025
  3. MarketWatch.com, June 16, 2025
  4. CNBC.com, June 17, 2025
  5. WSJ.com, June 18, 2025
  6. CNBC.com, June 20, 2025
  7. MarketWatch.com, June 16, 2025
  8. WSJ.com, June 18, 2025

Tax Tip | What to Do If You Get an Identity Theft Letter From the IRS

The IRS can scan tax returns for potential fraud, and if a tax return seems suspicious, they will flag it for further review. In these cases, the IRS will send the taxpayer a letter notifying them of potential identity theft. Because the tax return won’t be processed until you respond to the letter, following the steps outlined is essential. The letter will likely have everything you need to know.

The three different types of identity theft letters that the IRS may send out include:

  1. A letter that asks the taxpayer to verify their identity online
  2. A letter that asks the taxpayer to call the IRS to verify their identity
  3. A letter that asks the taxpayer to verify their identity in person.

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS8

Footnotes and Sources

  1. IRS.gov, December 5, 2024

Weekly Market Insights | Market Attention Turns to Trade and Oil

Stocks fell last week as an up-and-down mix of trade progress and anxiety, economic news, and geopolitical tensions netted out.

The Standard & Poor’s 500 Index slid 0.39 percent, while the Nasdaq Composite Index slipped 0.63 percent. The Dow Jones Industrial Average declined 1.32 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, edged down 0.18 percent.1,2

Trade, Geopolitics Dominate Sessions

Stocks largely languished for the first half of the week as investors awaited news from U.S.-China trade talks and key inflation reports.3,4

Sentiment began to rise late Tuesday afternoon following upbeat comments about trade talks. Most of the market gains came before the U.S. and China separately announced the trade update, with little reaction when markets opened the next day.4

Stocks peaked midweek, then declined despite a May report showing consumer inflation rose less than expected. Markets then trended a bit higher after a better-than-expected wholesale inflation report.5

Beginning Friday morning, all three averages were under pressure all day following news of an escalated conflict in the Middle East. Oil prices pushed higher on Friday on supply concerns.6

Brighter Notes

As the week ended with rising tensions in the Middle East, it was easy to overlook some good economic news.

First is inflation: both the Consumer Price Index (CPI) and the Producer Price Index (PPI) showed signs of cooling or holding steady. And both the CPI and PPI slightly beat expectations.

Second, consumers. Consumer sentiment jumped in May—the first such rise in six months. Economists took note, as consumer spending drives two-thirds of the U.S. economy.7

Footnotes and Sources

  1. WSJ.com, June 13, 2025
  2. Investing.com, June 13, 2025
  3. CNBC.com, June 9, 2025
  4. WSJ.com, June 10, 2025
  5. CNBC.com, June 12, 2025
  6. CNBC.com, June 13, 2025
  7. WSJ.com, June 13, 2025

Tax Tip | How to Check the Status of Your Federal Tax Refund

Filing taxes has become more seamless in recent years due to e-filing. It’s also easy to check the status of your refund if you anticipate one. The IRS has a tool called Where’s My Refund? where taxpayers can check the status of their refund within 24 hours of the IRS acknowledging the taxpayer’s e-filed return. You can also see a personalized refund date after the return is processed.

You can access the tool online on the IRS website or via their app. It has three phases: return received, refund approved, and refund sent. The IRS recommends setting up direct deposit to receive your refund even faster. The tool is updated once a day.

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS9

Footnotes and Sources

  1. IRS.gov, September 20, 2024

Weekly Market Insights | Trade Tension Down, Economic Data Up

Stocks rallied last week as investors responded to upbeat economic data and easing trade tensions.

The Standard & Poor’s 500 Index added 1.50 percent, while the Nasdaq Composite Index rose 2.18 percent. The Dow Jones Industrial Average advanced 1.17 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, picked up 0.78 percent.1,2

S&P 500 Closes Above 6,000 (Again)

Early in the week, markets notched steady gains as investors awaited key economic indicators and monitored ongoing trade discussions. Megacap tech names—particularly AI chipmakers—led the broader market higher, as sentiment stayed bullish on prospects for a U.S.-China trade deal.3

Midweek, however, concerns over tariffs and a notable decline in one megacap tech stock slowed overall market momentum. Recent conversations between the U.S. and Chinese leadership helped investors envision progress toward a trade deal between the two nations.4,5

On Friday, stocks pushed higher following the release of the May jobs report, which showed an addition of 139,000 jobs, above expectations of 125,000. The S&P 500 closed above 6,000 for the first time since February—a key psychological hurdle for some market participants. And the Dow erased all its 2025 year-to-date losses.6,7

Jobs & Trade

Amid considerable market noise, stocks pushed higher last week. Here are three takeaways:

  • First, the upbeat jobs report was strong enough to ease some economic concerns.
  • Second, the jobs report showed that the unemployment rate held steady at 4.2 percent, and wage growth increased by 3.9 percent year-over-year. These figures also helped ease slowdown fears.7
  • Last, despite some political squabbles, trade talks progressed this week, with the U.S. striking a deal with Germany while continuing to move forward with China.8

Footnotes and Sources

  1. WSJ.com, June 6, 2025
  2. Investing.com, June 6, 2025
  3. CNBC.com, June 3, 2025
  4. CNBC.com, June 5, 2025
  5. MarketWatch.com, June 5, 2025
  6. MarketWatch.com, June 6, 2025
  7. WSJ.com, June 6, 2025
  8. MarketWatch.com, June 6, 2025