Tax Tips

People with disabilities can use an Achieving a Better Life Experience (ABLE) account to help pay qualified disability-related expenses. Here are some things to know about ABLE accounts:

• This tax-advantaged savings account doesn’t affect their eligibility for government assistance programs.
• ABLE account-designated beneficiaries may be eligible to claim the saver’s credit for a percentage of their contributions.
• Eligible beneficiaries must be 18 years old at the close of the taxable year, not dependent or full-time students, and meet the income requirements.
• Families may roll over funds from a 529 plan to another family member’s ABLE account.
• Disability-related expenses include housing, education, transportation, health, prevention and wellness, employment training and support, assistive technology, and personal support 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 IRS¹⁰

Footnotes and Sources

10. ^{IRS.gov, July 22, 2024} 

Did you know that the IRS has an app that makes checking some things off your tax to-do list easy? Using the app, you can:

• Check your refund status. Your refund status is available within 24 hours after the IRS receives your e-filed return (or four weeks after receiving a paper return).
• Access IRS Free File. Free File is a tax prep software for taxpayers whose total adjusted gross income was $84,000 or less.
• Find payment options, including IRS Direct Pay, which allows you to pay tax bills directly from your bank account.
• Get tax help.
• Stay up to date with updates from the IRS. 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, April 18, 2024} 

Federal and state excise taxes are for specific goods, services, and activities, such as fuel, tobacco, alcohol, airline tickets, and more.

If your business is subject to excise tax, you must file a Form 720, Quarterly Excise Tax Return, to report the tax. You must also file this form every quarter.

You can electronically file Form 720. Each industry may have its forms (ex: Form 2290, Heavy Highway Vehicle Use Tax).

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, July 30, 2024}

You might hire employees and independent contractors for similar work, but there are differences in how they are classified. Here are a few questions to consider:

• Does the company have the right to control what the worker does and how the worker does the job?
• Does the business direct or control the financial and business aspects of the worker’s job?
• Are the business aspects of the worker’s job controlled by the payer?
• Are there written contracts or employee-type benefits such as a pension plan, insurance, and vacation pay?
• Will the relationship continue, and is the work performed a key aspect of the business?

Correctly classifying your workers is key when managing issues with taxes or liability.

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, July 30, 2024} 

If you’re selling your home, you may be able to exclude all or part of any gain from the sale when filing your tax return. To see if you are eligible for this benefit, you have to consider:

• The home’s ownership and use: Over five years, ending on the date of the sale, the homeowner must have owned the house and lived in it as their main home for at least two years.
• Any gains: Taxpayers who sell their primary home and gain from the sale may be able to exclude up to $250,000 of that gain from their income. The exclusion increases to $500,000 for a married couple, filing jointly.
• Mortgage debt: Generally, if your mortgage debt was forgiven or canceled, such as in the case of a foreclosure, you have to report this forgiven debt as income on 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 IRS¹¹

Footnotes and Sources

11. ^{IRS.gov, January 15, 2025} 

If you have a legal agreement with your child’s other parent regarding custody, you may have questions about claiming the child on your tax return and what credits (if any) you are eligible for.

It might help if you research the Child Tax Credit as well. The parent who claimed the Child Tax Credit for a qualifying child the previous year may have received the advance child tax credit payments the following year.

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

Tip adapted from IRS¹¹

Footnotes and Sources

11. ^{IRS.gov, March 6, 2025} 

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

7. ^{IRS.gov, November 8, 2024}

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

10. ^{IRS.gov, November 18, 2024}

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

8. ^{IRS.gov, December 5, 2024}

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

9. ^{IRS.gov, September 20, 2024}