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Got a Customer Offering to Pay for Your Expansion? Read This First

Here's a situation that catches business owners off guard: a big customer offers to fund an addition to your building or new equipment so you can produce more for them. It feels like a generous, tax-free boost — but the IRS often sees it very differently.

In a recent court case, a manufacturer took more than $4 million from a customer to expand its facility in exchange for producing more units at a better price. The company treated the money as a tax-free contribution. The court disagreed — because the improvement belonged to the company and the cash was really payment tied to future business, the full amount counted as taxable income.

The way these arrangements are written can make a real difference in whether you owe tax now or later. A quick conversation before you sign can help you avoid a surprise bill down the road.

General information, not advice for your specific situation — reach out to your SK Financial team to see how it applies to you.

Need to Prove You're in Good Standing With the IRS? There's a New Way

Applying for a mortgage, a business loan, a professional license, or a government benefit often means proving you're up to date with the IRS. The IRS now offers a Tax Compliance Report you can download yourself through your secure IRS online account.

What makes it especially handy: the report comes with a built-in digital "seal of authenticity." That means the bank or agency receiving it can confirm it's genuine and hasn't been changed — so there's less back-and-forth and fewer delays when you're on a deadline.

General information, not advice for your specific situation — reach out to your SK Financial team to see how it applies to you.

When you want someone to help with an IRS matter, there isn't just one "permission slip" — there are a few, and they do very different things. Choosing the right one up front can save real time if a question or notice ever comes up.

• Full representation: lets us speak, negotiate, and act on your behalf with the IRS — the strongest option.
• Information-only access: lets us review your records and receive copies of IRS letters, but not argue your case.
• A checkbox on your return: lets us discuss that one return — but it quietly expires about a year later.
• Phone permission: lets the IRS talk to us during a single call, and ends when the call does.

The catch many people miss: the checkbox and phone permissions are short-lived. If a notice shows up months down the road, they may already have lapsed — leaving us unable to jump in quickly. Setting up broader authorization ahead of time means we can respond the moment something arrives instead of scrambling for paperwork first.

The good news: you can cancel any authorization whenever you like.

General information, not advice for your specific situation — reach out to your SK Financial team to see how it applies to you.

A Free IRS Tool That Helps You File a Cleaner Return

Did you know the IRS keeps free records — called transcripts — that summarize your tax history? They come in a few flavors, and one of the most helpful is the Wage & Income transcript. It lists the W-2s, 1099s, and other income forms that employers and banks have reported to the IRS about you.

Comparing that list to your own paperwork before filing is a simple way to make sure nothing slips through the cracks. If a form is missing from your files, the transcript can flag it — and matching what you report to what the IRS already sees is one of the best ways to avoid a surprise letter down the road.

One heads-up: a transcript only shows forms the IRS has already processed, so very recently filed items may not appear right away.

General information, not advice for your specific situation — reach out to your SK Financial team to see how it applies to you.

Good News May Be Coming for Pre-K Teachers

For years, teachers have been able to deduct up to $350 of what they spend out of their own pockets on classroom supplies — and the nice part is you don't have to itemize to claim it. Until now, though, this benefit has only been available to teachers in grades K through 12.

A bill moving through Congress would extend that same $350 deduction to pre-kindergarten teachers who work in a school. If it becomes law, a group of educators who've long been left out would finally get to write off some of their classroom spending.

General information, not advice for your specific situation — reach out to your SK Financial team to see how it applies to you.

A Change Coming for Filing 1099s Electronically

If you or your business e-file 1099s and other information returns, the IRS is retiring its older online filing system and replacing it with a newer one called IRIS before next year's filing season. The switch takes effect in November 2026, so anyone who files these forms will need to be set up on the new system ahead of time.

The new system is free to use, lets you enter forms by hand or upload a spreadsheet, and keeps copies of everything you file — a nice upgrade for recordkeeping. The main thing to know is that access doesn't transfer automatically; a fresh registration is required.

If we handle your information-return filings, we're already preparing. If you file your own, now is a good time to make sure you're ready for the switch.

General information, not advice for your specific situation — reach out to your SK Financial team to see how it applies to you.

A Possible Tax Break for Making Your Home Safer

Lawmakers are considering a new tax credit designed to help older homeowners stay in their homes comfortably and safely. If it becomes law, people age 60 and up could receive a credit of up to $10,000 a year for the cost of certain home improvements — think grab bars, handrails, wider doorways, nonslip flooring, walk-in showers with seating, ramps, and stairlifts.

This isn't law yet — it's still a proposal — so there's nothing to claim today. But if you're already planning safety-focused upgrades for yourself or a loved one, it's a smart moment to save your receipts and keep records. That way, if the credit passes, you'll be ready to take advantage of it.

General information, not advice for your specific situation — reach out to your SK Financial team to see how it applies to you.

Lawmakers have introduced legislation that would change the rules for people who have built unusually large retirement nest eggs. It's only a proposal today — nothing has passed — but it's worth understanding where the conversation is heading.

Under the idea being floated, savers whose combined retirement accounts (traditional IRAs, Roth IRAs, 401(k)s and similar plans) add up to more than $10 million would be required to take out a large portion of the amount above that line each year. Balances above $20 million would face even bigger mandatory withdrawals. The plan would also stop new contributions once total balances pass $10 million for higher earners.

Even though this is far from becoming law, it's a good reminder that the tax treatment of retirement savings can change. Families approaching these balance levels sometimes benefit from spreading savings across different types of accounts so they aren't overly reliant on any single set of rules.

General information, not advice for your specific situation — reach out to your SK Financial team to see how it applies to you.

Lawmakers in Washington are weighing a new rule that would, for the first time, require the many tax preparers who aren't licensed professionals to meet minimum standards — things like background checks, tax-compliance checks, and ongoing training every year before they can legally prepare returns.

The reason is simple: studies have long shown that returns prepared by unlicensed preparers tend to contain more errors, especially around valuable tax credits. Those mistakes can mean delayed refunds, IRS notices, or repaying money later.

If you have friends or family who prepare their own returns or use a preparer they aren't sure about, this is a good moment to remind them that who signs the return really does matter.

General information, not advice for your specific situation — reach out to your SK Financial team to see how it applies to you.

Earn Overtime? There's a Deduction You Can Claim

If part of your pay comes from overtime, a temporary tax break may lower your taxable income. You can deduct up to $12,500 of qualifying overtime pay — or up to $25,000 if you're married and file jointly.

The best part: you don't have to itemize to get it. This deduction is available even if you take the standard deduction. It starts to shrink for higher earners (above $150,000 of income for singles, $300,000 for joint filers), and it's currently set to run through 2028.

General information, not advice for your specific situation — reach out to your SK Financial team to see how it applies to you.

A Possible Boost for Small Business Owners

If you own a business set up as a sole proprietorship, partnership, LLC, or S corporation, you may already benefit from a special deduction that lets you subtract a slice of your business income before figuring your tax. Today that deduction is 20% of qualifying income.

There's a proposal in Congress to raise it to 25%. It hasn't passed and may change, but it's worth knowing about. A higher percentage would mean more of your business income could be shielded from tax.

This deduction comes with income limits and rules about wages and property, so how much you can claim depends on your specific numbers. That's exactly the kind of thing worth planning ahead for, especially if a change is on the horizon.

General information, not advice for your specific situation — reach out to your SK Financial team to see how it applies to you.

Owns a Corporation With Passive Investments? A Rule Worth Knowing

If your business is set up as a corporation and it holds investments that generate "passive" losses — think rental property or interests in ventures you don't actively run — there are special rules about when those losses can actually reduce your tax bill.

The key is what kind of corporation you have. A closely held corporation (owned by just a few people) can generally use passive losses to offset income from its active operations, but not against investment income like interest or dividends. A personal service corporation — one built around professional services — faces tighter limits and often can't use those passive losses in the current year at all; they carry forward instead.

General information, not advice for your specific situation — reach out to your SK Financial team to see how it applies to you.

A Quiet Estate-Planning Move That Can Save Your Family Millions

When someone passes away, their estate may need to file a federal estate tax return. Many families assume that if the estate is comfortably below the exemption amount, there's simply nothing to file — and often that's true. But there's an important exception worth knowing about.

If a spouse dies, the survivor can carry over any of the deceased spouse's unused federal exemption — but only if an estate tax return is filed to formally claim it. This is called "portability," and it can effectively double the amount a family can eventually pass on free of estate tax. Skip that filing, and that valuable unused exemption can be lost for good.

There are deadlines involved — generally within several months of the date of death, with extensions available — so this is worth reviewing sooner rather than later if you've lost a spouse recently.

General information, not advice for your specific situation — reach out to your SK Financial team to see how it applies to you.

Donating a Stay at Your Vacation Home? Know This First

It's a common and generous move: you offer a week at your cabin or beach house as a prize for a charity gala or school auction. It's a wonderful gesture — but it's worth understanding how it works at tax time before you assume it lowers your bill.

Giving away the right to use your property is treated as giving only a piece of it, so it generally earns no charitable deduction. The same is true for offering time in a timeshare unit.

Moving Retirement Money? A New Standard Form Is on the Way

If you've ever changed jobs or thought about combining old retirement accounts, you know the paperwork can feel confusing — and a small mistake can turn a simple transfer into an unexpected tax bill.

The government has just introduced new standardized sample forms to make moving money between a workplace retirement plan (like a 401(k)) and an IRA smoother and more consistent. The forms are designed to protect your personal information and cut down on the back-and-forth that often slows these transfers.

One thing to note: these forms cover moves between a plan and an IRA (or between two plans), but not transfers from one IRA to another. And not every plan provider is required to use them yet.

The takeaway: before you roll over any retirement account, it pays to plan the move carefully so every dollar lands where it should.

General information, not advice for your specific situation — reach out to your SK Financial team to see how it applies to you.

Own a Heavy Truck? A Key Federal Deadline Is Coming Up

If you own or operate a highway vehicle weighing 55,000 pounds or more, there's an annual federal tax return — Form 2290 — that keeps you compliant and your truck registerable. The new tax year runs from July 2026 through June 2027.

Here's the part that trips people up: the due date depends on the first month you drove the vehicle on public roads, not when you registered it. If a truck first hit the road in July 2026, the return is due by August 31, 2026. Put a truck into service later in the year, and the return is due by the end of the following month, with the tax prorated for the shorter time on the road.

A little planning around your first-use month keeps everything running smoothly and avoids registration delays.

General information, not advice for your specific situation — reach out to your SK Financial team to see how it applies to you.

A Tax Update for Traders of Energy & Commodity Contracts

If you trade futures or similar contracts on ICE Endex — a regulated electronic exchange based in the Netherlands — there’s helpful news. The IRS has officially confirmed it as a recognized exchange, which means the contracts you trade there now qualify for a special set of tax rules that many active traders find favorable.

Under these rules, your gains and losses are treated as a blend: 60% of the result is taxed at the lower long-term rate and 40% at the short-term rate — even if you only held the position briefly. There’s also a year-end step where open positions are valued as if sold on December 31, which affects when your gains and losses are counted.

The main thing to know: this type of trading has its own reporting form and its own timing rules, so it’s worth reviewing your year-end statements carefully rather than assuming they work like a regular brokerage account.

General information, not advice for your specific situation — reach out to your SK Financial team to see how it applies to you.

Donating a Car to Charity? Know What You Can Actually Deduct

Giving your vehicle to a good cause feels great — but the tax deduction may not be what you expect. Many people assume they can write off the car's full market or book value. In most cases, though, your deduction is limited to the amount the charity gets when it sells the vehicle.

There are a few exceptions — for example, if the charity keeps and uses the car itself or gives it to someone in need — but those are specific situations, not the norm.

The best move is usually to wait for the charity's paperwork before settling on a deduction amount, so your return matches what actually happened.

General information, not advice for your specific situation — reach out to your SK Financial team to see how it applies to you.

A New Wrinkle for Charitable Giving in 2026

If you itemize your deductions, there's a change worth knowing about for your 2026 tax return. Going forward, your charitable gifts only count as a deduction to the extent they exceed one-half of one percent of your income. In other words, the first small portion of what you give each year no longer lowers your tax bill.

One simple strategy can help: instead of giving a steady amount every year, some people choose to combine several years of planned giving into a single year. That way you clear the threshold once rather than losing a slice of your gift year after year. A donor-advised fund can make this easy while still letting you support your favorite causes on your own schedule.

General information, not advice for your specific situation — reach out to your SK Financial team to see how it applies to you.

A New Way to Get Free Money for Retirement Starts in 2027

Good news for savers with modest incomes: a new program called the Saver's Match is launching for contributions made in 2027. If you qualify, the government will actually chip in money alongside what you save — matching 50% of the first $2,000 you put into a retirement account, up to $1,000 per person each year.

Here's what makes this different from the older tax break it replaces: the money is deposited right into your retirement account instead of just lowering your tax bill. That means people who didn't owe much tax — and therefore got little or nothing from the old version — can now receive the full benefit. It works with a workplace retirement plan or an IRA, and a new government website is expected to help those without a plan at work find an account that qualifies.

If your household includes younger workers, part-timers, or anyone earning a modest income, this is worth planning for well before 2027 begins.

General information, not advice for your specific situation — reach out to your SK Financial team to see how it applies to you.

Handling Your Business Taxes Online Just Got Easier

The IRS has added several helpful features to its Business Tax Account — the secure online portal where your business can view and manage its federal tax records without a phone call or an office visit.

A few of the newest conveniences:

• See a growing list of your IRS notices digitally, right in your account.
• Check the balance on an existing payment plan and make a payment toward it online.
• Download your official EIN confirmation letter — handy when a bank asks for proof of your business tax ID.

These tools can save you time on everyday tasks like confirming your tax ID for a new bank account or keeping an eye on a payment arrangement.

General information, not advice for your specific situation — reach out to your SK Financial team to see how it applies to you.

Do You Offer Paid Family or Medical Leave? There's a Bigger Tax Credit Now

If your business gives employees paid time off to welcome a new baby, care for a family member with a serious illness, or recover from their own, there's a federal tax credit designed to reward you for it — and it just got more generous and became permanent.

A few updates worth knowing:

• Employees can now count toward the credit after just six months on the job.
• Part-time staff who regularly work at least 20 hours a week can now qualify.
• The credit can be based on the wages you pay during leave or on insurance premiums you pay to provide it.

If you've been on the fence about adding a paid-leave benefit, the expanded rules may make it more affordable than you'd expect once the credit is factored in.

General information, not advice for your specific situation — reach out to your SK Financial team to see how it applies to you.

A Long-Term Way to Defer — and Possibly Erase — Tax on Big Gains

If you've sold (or plan to sell) an investment, property, or business at a large profit, there's a strategy worth knowing about. By reinvesting those gains into a special type of fund that supports development in designated communities, you can push off the tax on the gain — and if you hold on long enough, part of it can shrink or disappear entirely.

This program used to be scheduled to end, but a recent law made it permanent — so it's now a lasting planning option rather than a one-time opportunity. Timing is key, though: you generally have only 180 days from your sale to reinvest, and there's annual paperwork to keep the benefit in place.

General information, not advice for your specific situation — reach out to your SK Financial team to see how it applies to you.

Selling Your Home? The "Tax-Free" Amount Hasn't Changed Since 1997

When you sell your main home, you can often exclude a big chunk of the profit from taxes — up to $250,000 if you're single, or $500,000 if you're married and file jointly. Here's the catch: those dollar amounts were set back in 1997 and have never been raised for inflation, even though home values have grown enormously since then.

That means more homeowners who've owned for a long time — and especially those in areas where prices have soared — are finding their profit tops the limit and part of it becomes taxable. It can be a surprising and expensive discovery at closing.

If a sale might be on your horizon, it's worth estimating your potential gain before you list — so there are no surprises and you can make the most of every dollar you're entitled to exclude.

General information, not advice for your specific situation — reach out to your SK Financial team to see how it applies to you.

A Tax Break on Long-Term-Care Insurance for the Self-Employed

If you're self-employed and pay premiums on a qualified long-term-care insurance policy, there's a friendly tax advantage worth knowing about. Instead of having to itemize your deductions and clear a high medical-expense threshold, you can often subtract these premiums directly from your income — the same way you handle your health insurance premiums.

There's a limit on how much you can deduct each year, and it's based on your age: the older you are, the larger the allowance. For the 2026 tax year, the amounts run from $500 per person for those 40 and under up to $6,200 per person for those 71 and older.

General information, not advice for your specific situation — reach out to your SK Financial team to see how it applies to you.

Casinos Will Send Fewer Tax Forms — But Your Winnings Still Count

Starting with 2026, casinos won't report a jackpot to the IRS until a single win reaches $2,000. That's a jump from the old limits of $1,200 for slots and bingo and $1,500 for keno. Online sports betting sites follow the same $2,000 mark.

Here's the part that's easy to miss: getting fewer forms does not mean smaller wins are tax-free. All gambling winnings are taxable and belong on your return — even the ones no casino ever reports.

A quick habit that pays off: jot down what you win and lose each time you play. Good records make it far easier to report accurately and to claim any losses you're entitled to when you itemize.

General information, not advice for your specific situation — reach out to your SK Financial team to see how it applies to you.

Good News for On-Time Filers: Penalty Relief Just Got Easier

If you have a habit of filing and paying your taxes on time, the IRS is making it simpler to have an occasional late penalty forgiven. A new automatic program means that, for qualifying returns, certain penalties for filing late, paying late, or missing a deposit may be waived without you having to ask. When it applies, you'll receive a notice confirming the relief.

A couple of things worth keeping in mind:

• This covers the penalty only — any tax and interest you owe still needs to be paid.
• While the new system is being phased in, a qualifying taxpayer might still receive a penalty notice by mistake. If that happens, don't ignore it — the relief can still be requested.
• Certain special returns, such as estate and gift tax returns, generally aren't included.

If you receive any IRS notice about a penalty, the best move is simply to forward it to us so we can make sure you're getting every bit of relief you're entitled to.

General information, not advice for your specific situation — reach out to your SK Financial team to see how it applies to you.

A New Way to Pay for Long-Term-Care Insurance

If you own a long-term-care insurance policy, there's a helpful change for 2026. You can now withdraw up to $2,600 a year from your 401(k) or similar workplace retirement plan to help cover those premiums — and if you're under 59½, you skip the usual 10% early-withdrawal penalty. Keep in mind the money you take out still counts as regular taxable income for the year.

Giving to a Good Cause? A Quick Check Protects Your Deduction

When storms and other disasters make headlines, generosity goes up — and unfortunately, so do scams. Fraudsters set up fake charities to collect both your money and your personal information, so it pays to slow down before you donate.

Two simple habits keep you protected and keep your gift deductible:

• Confirm the organization is legitimate. Only gifts to qualified tax-exempt groups can be deducted. Money sent directly to an individual or a personal fundraiser — however worthy — generally doesn't count.
• Keep your paperwork. Save receipts and acknowledgment letters for cash gifts, and for donated items like clothing, furniture, or artwork, keep records that reasonably support their value. Avoid anyone promising an inflated value to slash your tax bill — that's a fast track to trouble.

General information, not advice for your specific situation — reach out to your SK Financial team to see how it applies to you.

Funding a Child's Trump Account? No Gift Tax Form Needed

If you've been curious about the new Trump Accounts—the tax-advantaged savings accounts for children under 18 who have a Social Security number—here's some welcome news. Recent guidance confirms that when parents, grandparents, or other family members put money into one of these accounts, it will not require filing a separate gift tax return, as long as the contribution follows the rules set out for it.

This makes these accounts a simple way to help a child or grandchild build savings early—without the extra paperwork many families worried about.

General information, not advice for your specific situation — reach out to your SK Financial team to see how it applies to you.

If Your Business Had a Loss You're Still Using, Keep the Paperwork

When a business has a year where losses exceed income, that loss doesn't just disappear — it can often be carried forward and used to reduce taxable income in future years. It's a valuable benefit. But here's something many people don't realize: if that deduction is ever questioned, showing a copy of the old tax return isn't enough on its own to prove it.

Because a loss can take several years to fully use up, the supporting paperwork may be older than the documents you'd normally keep. Clearing out those older files too early is one of the easiest ways to lose out on a deduction you rightfully earned.

A simple habit helps: keep a running summary showing the loss year, the amount used each year, and what's left — along with the original backup — until the loss is completely used.

General information, not advice for your specific situation — reach out to your SK Financial team to see how it applies to you.

Buying Health Insurance on the Marketplace? Check Your Income Estimate Now

If you buy your health coverage through a marketplace like healthcare.gov and get help lowering your monthly premium, an important rule changed for 2026. That premium help is based on the income you estimated when you signed up. When your tax return is filed, the estimate gets compared to what you actually earned.

Here's the key change: in past years, if your income came in higher than expected, many people only had to pay back part of the extra help they received. Starting with 2026, that protection is gone — if you received more assistance than you ultimately qualified for, you may have to repay the full amount when you file.

The good news is this is very manageable if you catch it early. Reviewing your expected income mid-year gives you time to update your marketplace estimate and avoid an unwelcome surprise at tax time.

General information, not advice for your specific situation — reach out to your SK Financial team to see how it applies to you.

If you have a passion project or side activity that consistently loses money, the IRS pays close attention — especially when those losses are used to reduce tax on your salary or investment income. The key question is whether your activity is a real business run to make a profit, or a hobby. That distinction decides whether your expenses can help you at tax time.

There's a helpful rule of thumb: if your activity turns a profit in at least three of the last five years, the IRS generally accepts you're in it to make money. If you don't hit that mark, it comes down to how you run things — and that's the part you can shape.

These habits do more than keep you organized — they build a record that shows you're genuinely trying to earn a profit, which is exactly what the IRS wants to see if questions ever come up.

General information, not advice for your specific situation — reach out to your SK Financial team to see how it applies to you.

Driving for Work? The Mileage Rate Went Up Mid-Year

If you use your personal vehicle for business, there's good news for the second half of 2026: the standard mileage deduction rate increased to 76 cents per mile for miles driven from July through December. The rise was tied to higher fuel costs this year.

One important detail — because the rate changed partway through the year, 2026 has two different business rates. Miles driven earlier in the year use the previous rate, and miles from July 1 onward use the new 76-cent rate. Keeping a log that notes the date of each trip makes it easy to apply the right rate and get the full benefit you're entitled to.

General information, not advice for your specific situation — reach out to your SK Financial team to see how it applies to you.

A Change Worth Knowing If You Ever Place a Bet

Starting with the tax return you'll file for 2026, the rules around gambling are shifting in two ways that could affect casual and serious bettors alike.

1. Losses are only 90% deductible. In the past, if you itemized, you could offset your gambling winnings dollar-for-dollar with your losses (up to the amount you won). Now only 90% of those losses count. In plain terms: even if you win and lose the same amount over a year, a small slice of your winnings can still be taxed.

2. More winnings get reported to the IRS. Casinos and betting sites will now issue a tax form for slot, bingo, and keno wins of $2,000 or more (the old cutoffs were lower). Online sports betting and fantasy sports winnings are taxable too.

General information, not advice for your specific situation — reach out to your SK Financial team to see how it applies to you.