Tax Tips

Taxpayers should understand their filing status well and at least be familiar with the other choices.

When preparing and filing a tax return, the filing status affects:

• If the taxpayer is required to file a federal tax return
• Their standard deduction amount
• If they can claim certain credits
• The amount of tax they should pay

Here are the five filing statuses:

Single: This status is normally for taxpayers who are unmarried, divorced, or legally separated under a divorce or separate maintenance decree governed by state law.

Married filing jointly: If a taxpayer is married, they can file a joint tax return with their spouse. When a spouse passes away, the widowed spouse can usually file a joint return for that year.

Married filing separately: Married couples can choose to file separate tax returns in certain circumstances.

Head of household: Unmarried taxpayers may be able to file using this status, but special rules apply.

Qualifying widow(er) with dependent child: This status may apply to a taxpayer if their spouse died during one of the previous two years and they have a dependent child. Other conditions also apply.

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

Tip adapted from IRS.gov⁹

Footnotes And Sources

^{9. IRS.gov, July 8, 2025}

The Internal Revenue Service has certain special tax breaks and programs for members of the U.S. Armed Forces.

Earned Income Tax Credit
You may include nontaxable combat pay as part of your taxable income. Including it may boost your earned income tax credit, resulting in you owing less and potentially a larger refund.

Signing Joint Returns
As a rule, both spouses normally must sign a joint income tax return. If your spouse is absent due to military duty, you may be able to sign for your spouse. However, you may need a power of attorney to file a joint return.

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

Tip adapted from IRS.gov⁹

Footnotes And Sources

^{9. IRS.gov, August 15, 2025}

Many questions can arise about income taxes after retirement. Listed are answers to just a few common questions from retired taxpayers.

What types of income are taxable?
Some common types of taxable income include all or part of pension and retirement account income, gambling income, and alimony or prizes.

What types of income are non-taxable?
A few examples of non-taxable income include veterans’ benefits, disability pay for specific military or government-related incidents, workers’ compensation, and cash rebates from a dealer or manufacturer of an item you have purchased.

Why is my pension taxed?
It may depend on how the money was put into the pension. For example, if the money was not taxed before going into the plan, it may be taxable. Conversely, if your contribution is from already-taxed dollars, that portion of the pension may not be taxed.

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

Tip adapted from IRS.gov⁸

Footnotes And Sources

^{8. IRS.gov, August 18, 2025}

Recordkeeping Tips for Small Business Owners

As a small business owner, your recordkeeping is of utmost importance. These records show your income, expenses, business transactions, and much more. You can choose any record-keeping system you prefer if you and the IRS have the necessary information.

As a business owner, you will need to keep track of supporting documents such as:

• Purchases
• Sales
• Payroll
• Sales slips
• Paid bills
• Invoices
• Receipts
• Deposit slips
• Canceled checks
• Travel, transportation, entertainment, and gift expenses
• Assets

Keeping your records well-organized will save you time, effort, and money.

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

Tip adapted from IRS.gov⁸

Footnotes And Sources

^{8. IRS.gov, June 24, 2025}

Here are some tips from the IRS on how to choose a tax preparer who meets your needs:

• Check the IRS Directory of Federal Tax Return Preparers
• Check the preparer’s history with the Better Business Bureau
• Ask about fees
• Ask if the preparer plans to use e-file
• Make sure the preparer is available
• Check to see if the preparer signs and includes their preparer tax identification number
• Understand the preparer’s credentials

Choosing a reputable and reliable tax preparer can help protect you and your tax return.

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

Tip adapted from IRS.gov⁹

Footnotes And Sources
^{9. IRS.gov, April 23, 2025} 

The IRS Alternative Media Center offers a variety of resources and accessibility services for visually impaired taxpayers. Using this platform, they provide tax-related content in several formats, including:

• Text-only
• Braille-ready files (available in English and Spanish)
• Browser-friendly HTML
• Accessible PDF (available in English and Spanish)
• Large print PDF (available in a variety of languages)

The IRS also offers enhanced accessibility services. Taxpayers can complete Form 9000, Alternative Media Preference, to choose how they would prefer to receive their tax notices (ex: in Braille, large print, audio, or electronic formats). They also have an accessibility helpline that can answer questions related to accessibility services.

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

Tip adapted from IRS.gov¹⁰

Footnotes and Sources

^{10. IRS.gov, January 22, 2025}

An Offer in Compromise is a federal tax program that allows taxpayers to enter into an agreement with the IRS to settle their tax debt for less than the amount they owe. This agreement is an option when taxpayers can’t pay their full tax liabilities or when paying the entire balance owed would cause financial hardship. The goal is a compromise that suits the best interests of both parties.

The IRS considers various circumstances when reviewing OIC applications, including the applicant’s:

• Income
• Expenses
• Asset equity

There is also an application to apply for an OIC. Taxpayers who meet the definition of a low-income taxpayer don’t have to pay this fee.

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

Tip adapted from IRS.gov⁸

Footnotes and Sources

8. ^{IRS.gov, May 22, 2025} 

As part of the Taxpayer Bill of Rights, you have the right to retain an authorized representative to represent you when dealing with the IRS. If you can’t afford representation, seek help from a Low Income Taxpayer Clinic (LITC).

An authorized representative can represent you in interviews, audits, appeals, and tax collection disputes with the IRS and in court. Authorized representatives include attorneys, CPAs, enrolled agents, enrolled actuaries, or any other person who has submitted a written power of attorney to represent you.

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

Tip adapted from IRS.gov⁹

Footnotes and Sources

9. ^{IRS.gov, May 29, 2025}

Generally, distributions from a traditional Individual Retirement Account are taxable in the year the account owner receives them. However, a qualified charitable distribution (QCD) is one exception to this rule.

A QCD is a nontaxable distribution made directly by the trustee of an IRA to organizations that are eligible to receive tax-deductible contributions. Of course, the main benefit of giving to a charitable organization is making a difference. Yet, some tax benefits reward philanthropy. Making a QCD can help manage your taxable income while supporting qualifying charitable organizations.

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

10. ^{IRS.gov, May 29, 2025}

Every year, IRS-certified volunteers help people file their tax returns. This volunteer opportunity is ideal for individuals seeking to expand their knowledge of tax preparation, earn continuing education credits, or contribute to their community.

The IRS offers the Volunteer Income Tax Assistance (VITA) program and the Tax Counseling for the Elderly (TCE) program. VITA offers free help to people earning $67,000 or less, people with disabilities, and limited English-speaking taxpayers. TCE is primarily for people aged 60 or older. Although the program focuses on tax issues unique to seniors, most taxpayers can get free assistance.

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

9. ^{IRS.gov, April 1, 2025}