RBO Financial Solutions, inc

05/04/2026

While both documents are fundamental pieces of an estate plan, they function quite differently. A Will is a legal document that outlines who should receive your assets after death, while a Trust is a legal entity that can hold and manage assets both during your life and after you pass away.
​Here are the primary benefits of using a trust compared to a simple will:
​1. Avoidance of Probate
​This is often the biggest motivator for choosing a trust.
​Wills: Must go through probate, a court-supervised process that validates the will and oversees the distribution of assets. This can take months or even years.
​Trusts: Assets held in a revocable living trust pass directly to beneficiaries without court intervention, saving time and legal fees.
​2. Privacy
​Wills: Once a will enters probate, it becomes a public record. Anyone can see what you owned, who your heirs are, and what they inherited.
​Trusts: A trust is a private contract. The distribution of your assets remains confidential between the trustees and the beneficiaries.
​3. Control Over Distributions
​Trusts allow for much more granular "dead hand" control than a will.
​Milestones: Instead of giving a beneficiary a lump sum at age 18 (as often happens with a will), you can stipulate that they receive portions at ages 25, 30, and 35.
​Incentives: You can link distributions to specific goals, such as graduating from college or starting a business.
​4. Incapacity Planning
​A will only takes effect when you die. It does nothing if you become physically or mentally unable to manage your affairs.
​Continuous Management: A trust allows a successor trustee to step in immediately and manage the assets for your benefit if you become incapacitated, often avoiding the need for a court-appointed guardianship or conservatorship.
​5. Asset Protection
​Certain types of irrevocable trusts can provide protection from creditors or lawsuits.
​Spendthrift Clauses: These can protect a beneficiary’s inheritance from their own creditors or potentially from a former spouse in a divorce proceeding.
​Note: Even with a trust, most people still need a "Pour-Over Will." This acts as a safety net to catch any assets you forgot to title in the name of the trust and move them into the trust upon your death.

05/01/2026

Individual Retirement Accounts (IRAs) are tax-advantaged accounts that allow individuals to save for retirement outside of employer-sponsored plans. The primary types of IRAs include Traditional, Roth, SEP, and SIMPLE IRAs, each offering different tax benefits and eligibility requirements.Primary Types of IRAsTraditional IRA: Contributions may be tax-deductible in the year they are made, which reduces current taxable income. Earnings grow tax-deferred, meaning they are not taxed until they are withdrawn as ordinary income during retirement.Roth IRA: Contributions are made with after-tax dollars and are not deductible. However, investments grow tax-free, and qualified withdrawals in retirement are also tax-free. Unlike Traditional IRAs, there are income limits for eligibility to contribute.SEP IRA (Simplified Employee Pension): Specifically for self-employed individuals and small business owners. It allows for much higher contribution limits than standard IRAs—up to the lesser of 25% of compensation or $72,000 for the 2026 tax year.SIMPLE IRA (Savings Incentive Match Plan for Employees): Designed for small businesses with 100 or fewer employees. It allows both employee salary deferrals and mandatory employer matching or non-elective contributions.Rollover IRA: Used to consolidate funds from a former employer’s retirement plan, like a 401(k), to maintain their tax-advantaged status.Core Advantages of IRAsTax Benefits: Depending on the type, IRAs offer either an upfront tax break (Traditional) or tax-free income in the future (Roth), allowing retirement savings to potentially grow faster than in a taxable account.Investment Flexibility: IRAs typically provide a broader range of investment choices compared to most 401(k) plans, including individual stocks, bonds, and various mutual funds or ETFs.Estate Planning: IRAs allow you to name beneficiaries, meaning the assets can be passed directly to heirs outside of probate. Roth IRAs are particularly useful for this as they have no Required Minimum Distributions (RMDs) for the original owner.Supplemental Savings: You can contribute to an IRA even if you already participate in an employer plan like a 401(k), further increasing your total retirement nest egg.Withdrawal Flexibility (Roth only): You can withdraw your original Roth IRA contributions at any time without taxes or penalties.2026 Contribution Limits at a GlanceIRA TypeUnder Age 50Age 50+ (with Catch-up)Traditional & Roth$7,500$8,600SIMPLE IRA$17,000$21,000+SEP IRAUp to $72,000N/ASource: IRS, Vanguard.Would you like to see how the income limits for Roth IRA eligibility might affect your specific tax filing status?

05/01/2026

To amend a federal tax return, you must file Form 1040-X, Amended U.S. Individual Income Tax Return. This form is used to correct previously filed Forms 1040, 1040-SR, or 1040-NR.When to AmendRequired: If there are changes to your filing status, income, deductions, credits, or tax liability.Not Necessary: For simple math errors or forgetting to attach specific forms (like a W-2); the IRS typically corrects math and requests missing documents during processing.Waiting Period: If you are expecting a refund from your original return, wait until you receive it before filing Form 1040-X.How to FileElectronic Filing: Available for the current and two prior tax years if you originally filed electronically. Direct deposit is an option for electronically filed amended returns for tax years 2021 and later.Paper Filing: Required for returns older than the current or prior two years, or if the original return was filed on paper.Multiple Years: Use a separate Form 1040-X for each year being amended. If mailing, use separate envelopes.Supporting Documents: Attach any forms or schedules that have changed (e.g., Schedule A if itemized deductions changed).Time Limits and StatusDeadline: Generally, to claim a refund, you must file within 3 years of the original filing date or 2 years from when the tax was paid, whichever is later.Processing Time: It typically takes 8 to 12 weeks to process, though some cases may take up to 16 weeks.Tracking: Use the Where's My Amended Return? tool to check status approximately 3 weeks after submission.Would you like to know the specific IRS mailing address for your state or details on how to calculate the changes on Form 1040-X?

04/09/2026

IRS issues nationwide warning to tax filers
Tick, tick, tick.

That sound your hearing is the approaching deadline to file your federal income taxes.

With the April 15 tax deadline fast approaching, the Internal Revenue Service reminds taxpayers that there is still time to file their returns electronically and request direct deposit for any refunds that are due. The deadline is important – you can avoid interest and some penalties by filing your return on time and paying the full amount due.

“Act now to file, pay, or request an extension,” the IRS said in a recent statement.

Here’s some important information to know as Tax Day approaches:

IRS.gov is the quickest and easiest way to get information

Pay your taxes. Get your refund status. Find IRS forms and answers to tax questions. We help you understand and meet your federal tax responsibilities.

03/27/2026

The IRS has cautioned that approximately 1.4 million taxpayers face potential refund delays during the 2026 filing season. While most e-filed returns with direct deposit are still processed within 21 days, several systemic changes and specific filing conditions are extending wait times for others.
IRS (.gov)
IRS (.gov)
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Primary Reasons for Delays
Direct Deposit Mandate: Under a new policy to modernize payments, the IRS is phasing out paper refund checks.
Frozen Refunds: If a return is filed without bank account information, the refund is temporarily frozen.
CP53E Notices: Over 830,000 taxpayers have already been sent this notice to update their banking details.
Response Window: You have 30 days to provide direct deposit info via your IRS Online Account. Failure to respond can result in a paper check delay of 10 weeks or longer.
Significant Workforce Reductions: The IRS began 2026 with a 27% smaller workforce—dropping from 102,000 to approximately 74,000 employees. This reduction affects nearly every department, including customer service and manual review teams.
Legislative Complexity: The "One Big Beautiful Bill Act" introduced over 100 retroactive tax code changes for 2025 returns. Complex new deductions for seniors, tip income, and car loan interest require more manual reviews to verify eligibility.
Mandatory Credit Holds: By law, refunds for returns claiming the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) cannot be issued before mid-February. For the 2026 season, these refunds were generally not available until March 2 at the earliest.
Fraud and Error Prevention: Heightened security checks for identity theft and "viral tax hacks" (such as fabricated capital gains via Form 2439) are flagging more returns for manual verification.
Taxpayer Advocate Service (.gov)
Taxpayer Advocate Service (.gov)
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Estimated 2026 Refund Timelines
Filing Method Delivery Method Estimated Timing
E-file Direct Deposit 1–3 weeks (up to 21 days)
E-file Paper Check 4 weeks (if approved)
Paper Return Direct Deposit 4–8 weeks
Paper Return Paper Check 4–9 weeks (if approved)
Missing Bank Info Paper Check 10+ weeks (after CP53E notice)
How to Avoid or Manage Delays
Verify Bank Info: Double-check routing and account numbers to prevent "rejected" deposits, which trigger a freeze.
Use Official Tools: Track status via the Where’s My Refund? tool or the IRS2Go app. Status updates are typically available 24 hours after e-filing.
Respond Quickly: If you receive a CP53E notice, update your information immediately through your IRS Online Account to avoid the 10-week paper check backlog.
IRS (.gov)
IRS (.gov)
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Would you like to know the specific eligibility requirements for the new car loan or senior deductions to ensure your return isn't flagged for review?
AI can make mistakes, so double-check responses

03/13/2026

Using a tax professional offers significant benefits, including maximum tax savings through expert identification of credits and deductions, enhanced accuracy to avoid costly IRS penalties and audits, and significant time savings. They provide year-round strategic planning, specialized knowledge of complex tax laws, and peace of mind by handling audits on your behalf.
National Society of Accountants (NSA)
National Society of Accountants (NSA)
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Key Benefits of Hiring a Tax Professional:
Maximized Refunds & Savings: Professionals identify all eligible deductions, credits, and tax-saving strategies, which is especially helpful for freelancers, small business owners, or those with complex finances.
Accuracy & Compliance: They stay updated on ever-changing tax laws, ensuring your return is accurate and reducing the risk of errors that trigger IRS notices.
Audit Representation & Protection: If you are audited, a tax pro can represent you and navigate the process, saving you stress and potential penalties.
Time Savings & Convenience: Outsourcing tax preparation frees up your time, removing the stress of deciphering complex tax code.
Year-Round Planning: They provide advice on financial decisions throughout the year to minimize future tax liabilities.
National Society of Accountants (NSA)
National Society of Accountants (NSA)
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When to Consider a Tax Professional:
You are self-employed or have a side hustle.
You have experienced major life changes (marriage, divorce, house purchase, inheritance).
You have investments, rental properties, or cryptocurrency.
You have a high-income bracket or complex financial situation.
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YouTube
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Drawbacks to Consider:
Cost: Professional services can cost hundreds of dollars, depending on the complexity of your return.
AAA Club Alliance
AAA Club Alliance
To help you decide if a tax professional is right for you, consider:
Do you have complex income sources (e.g., side hustle, rental properties, stocks)?
Did you have any major life changes this year?
Do you want to maximize deductions or fear an audit?
What is your budget for tax preparation?

03/04/2026

Based on early 2026 reports, "Trump Accounts" are a new type of tax-advantaged, child-focused investment account authorized by the "One Big Beautiful Bill Act". They are designed to allow parents, guardians, or others to establish a savings plan for children under 18, with a specific $1,000, federally funded seed contribution for children born between January 1, 2025, and December 31, 2028.
IRS (.gov)
IRS (.gov)
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Here are the key details regarding the $1,000 "Trump Account" initiative:
Eligibility and Seeding
$1,000 Initial Deposit: Children born between January 1, 2025, and December 31, 2028, who are U.S. citizens with a valid Social Security number are eligible for a one-time $1,000 contribution from the Treasury Department.
Additional Funding: A $6.25 billion donation from Michael and Susan Dell allows for an additional $250 contribution for up to 25 million children under 10 in middle- and lower-income areas.
Target Population: While the $1,000 is for 2025–2028 newborns, the accounts can be established for any child under 18

02/24/2026

Filing your taxes early is generally the safer, more strategic move, but waiting until the last minute can sometimes be a necessity if your financial situation is complex.
​Here is a breakdown of how the two approaches compare for the 2026 tax season.
​Filing Early (January – February)
​Most tax professionals recommend filing as soon as you have all your forms (W-2s, 1099s).
​Faster Refunds: The IRS typically processes early electronic returns within 21 days. Filing in February could mean money in your pocket by March, whereas waiting until April may push your refund into June due to the backlog.
​Identity Theft Protection: A common scam involves fraudsters filing a fake return using your Social Security number to steal your refund. If you file first, the IRS will reject any subsequent fraudulent attempts.
​More Time to Pay: If you discover you owe money, filing early gives you until the April 15, 2026 deadline to come up with the cash. You don’t have to pay the moment you file; you just need to submit the return.
​Access to Tax Pros: Accountants are less "under the gun" in early February. You’re more likely to get personalized advice and a thorough review of your deductions before the "April Madness" begins.
​Waiting (March – April)
​While procrastination is usually the culprit, there are valid reasons to wait.
​Waiting on Forms: Many investment forms (like Schedule K-1s or 1099-B for stocks/crypto) often don't arrive until late February or March. Filing without them leads to errors and the headache of filing an amended return.
​Maximum Contributions: You have until April 15 to make tax-deductible contributions to your IRA or HSA for the previous year. Waiting allows you to see exactly how much you need to contribute to drop into a lower tax bracket.
​Accuracy Over Speed: Rushing to file early can lead to "fat-finger" math errors or missed deductions. If your life changed significantly in 2025 (marriage, home purchase, new business), taking the extra time to ensure accuracy is worth the wait.

02/22/2026

Reporting foreign taxes is a cornerstone of U.S. tax compliance for anyone with income from abroad. The Foreign Tax Credit (FTC) is designed to ensure you aren't taxed twice on the same dollar, but the rules for claiming it are quite specific.
​1. Eligibility: What Qualifies?
​To claim the credit, the tax must meet four IRS "tests":
​The tax must be imposed on you.
​You must have paid or accrued the tax.
​The tax must be a legal and actual foreign tax liability (you can't claim a credit for taxes you could have avoided by using a treaty).
​The tax must be an income tax (or a tax "in lieu of" an income tax). Sales taxes, VAT, and property taxes generally do not qualify for the FTC.
​2. The Key Forms
​The form you use depends on whether you are an individual or a business:
​Form 1116: Used by individuals, estates, and trusts. You often have to file multiple copies of this form if your income falls into different "baskets" (e.g., one for Passive Income like dividends and one for General Category Income like wages).
​Form 1118: Used by corporations.
​Schedule 3 (Form 1040): This is where the final credit amount from Form 1116 is reported to reduce your total U.S. tax bill.
​3. Reporting Thresholds & Exceptions
​If your situation is simple, you might be able to skip the paperwork:
​De Minimis Exception: You can claim the credit directly on your tax return without filing Form 1116 if your total foreign taxes are $300 or less ($600 if Married Filing Jointly) and all your foreign income is passive (like dividends).
​Warning: If you use this exception, you cannot carry back or carry forward any unused credits to other tax years.

02/17/2026

IRS Tax Tip 2024-32, April 11, 2024

Direct deposit is the best way to receive a tax refund. The IRS encourages taxpayers to file by the April 15 federal tax deadline and choose direct deposit to receive any refund they may be owed.

Benefits of direct deposit
It's fast. The fastest way for taxpayers to get their refund is to file electronically and choose direct deposit. Taxpayers who file a paper return can also choose direct deposit, but it will take longer to process the return and get a refund.
It's secure. Since refunds are electronically deposited, there's no risk of having a paper check stolen or lost in the mail.
It's easy. Taxpayers can simply follow the instructions when selecting direct deposit as a refund method and enter their account information as directed. Taxpayers can find their routing and account numbers on their online banking page, banking statements or a personal check.
It provides options. Taxpayers can split a refund into several financial accounts. These include checking, savings, health savings and certain retirement accounts. They should use IRS About Form 8888, Allocation of Refund, to deposit a refund in up to three accounts. This form can’t be used to designate part of a refund to pay tax preparers.
Taxpayers should deposit refunds into U.S. bank accounts in their own name, their spouse's name or both. They should avoid making a deposit into accounts owned by others. Some banks require both spouses' names on the account to deposit a tax refund from a joint return. Taxpayers should check with their bank for direct deposit rules.

Get a bank account
Taxpayers who don't have a bank account can visit the FDIC website for information on banks that let them open an account online and how to choose the right account. Veterans can use the Veterans Benefits Banking Program for access to financial services at participating banks.

Mobile apps may be an option
Some mobile apps and prepaid debit cards allow for direct deposit of tax refunds. They must have routing and account numbers associated with them that can be entered on a tax return. Taxpayers should check with the mobile app provider or financial institution to confirm which numbers to use.

Taxpayers must have their routing and account numbers for direct deposit available when they are ready to file. The IRS can't accept this information after a return is filed.

There is a limit of three direct deposit refunds a year made into a single financial account or prepaid debit card.

02/16/2026

Based on the "One Big Beautiful Bill Act" passed in July 2025, the IRS has introduced a temporary federal income tax deduction for tipped workers, effective for tax years 2025 through 2028. While popularly termed "No Tax on Tips," it functions as a deduction of up to $25,000 in qualified tip income per year, rather than a total tax exemption.
Here is a summary of the IRS rules for taxes on tips for the 2025-2028 period:
1. The "No Tax on Tips" Deduction (2025–2028)
Deduction Limit: A deduction of up to $25,000 of qualified tips can be taken annually by eligible workers from their federal taxable income.
Eligibility: This deduction applies to employees and self-employed individuals in fields that historically received tips before December 31, 2024.
Income Limits: The deduction is reduced for those with modified adjusted gross income exceeding $150,000, or $300,000 for married couples filing jointly.
Filing Requirement: Married individuals must file jointly to claim this deduction.
Qualified Tips: Only voluntary cash tips, including those from credit cards and tip pools, are eligible. Employer-added automatic gratuities or service charges do not qualify.
Claiming the Deduction: The deduction is claimed on Form 1040 using the new Schedule 1-A.
2. Taxes Still Owed on Tips
Not all tip income is tax-free:
Payroll Taxes: Social Security and Medicare taxes are still required on all tips.
Income Tax on Excess: Federal income tax is owed on any tips exceeding the $25,000 deduction limit.
State and Local Taxes: This federal deduction does not affect state income taxes, and some states may still tax all tip income.
3. Reporting and Recordkeeping
Reporting to Employer: Employees must report cash tips of $20 or more received in a month to their employer by the 10th of the following month.
Recordkeeping: Maintaining a daily record of tip income is recommended.
Non-Cash Tips: Non-cash tips are taxable and must be reported on your tax return, but not to your employer.
4. 2025 Transition Year Rules
Special rules apply for the 2025 tax year:
Reporting: Employers will not be penalized for not separately reporting "qualified" and "non-qualified" tips on 2025 W-2 forms.
Calculation: For 2025, employees can use various records to determine their deductible tips.
Future Forms: Tax forms for 2026 will be updated to require separate reporting of qualified tips and an occupation code.