PazTax - Personal and Professional US tax service

02/05/2026

Create an IRS Individual Online Account today for security and convenience

https://www.irs.gov/payments/online-account-for-individuals

The Internal Revenue Service encourages all taxpayers to create an IRS Individual Online Account to access their tax account information securely online and to help protect against identity theft and fraud.

The IRS Individual Online Account is available to anyone who can verify their identity.

With the same convenience as online banking, taxpayers can use the IRS Individual Online Account to:

View key tax return information, such as their adjusted gross income.
Request an identity protection PIN and access it throughout the year.
Check the status of their refund.
Confirm the status of their amended return.
Get account transcripts, including wage and income records.
Approve power of attorney and tax information authorization requests.
Edit language preferences and request alternative media.
Receive and view over 200 IRS digital notices.
Make and cancel payments.
Set up or modify payment plans and check their balance.
Access tax documents online

In early 2025, the IRS expanded the IRS Individual Online Account to allow taxpayers to view and download certain tax documents, including:

Form W-2, Wage and Tax Statement.
Form 1095-A, Health Insurance Marketplace Statement.
Form 1099-NEC, Nonemployee Compensation.
Form 1099-DIV, Dividends and Distributions.
Form 1099-INT, Interest Income.
Form 1099-MISC, Miscellaneous Information.
A full list of information return documents is available on IRS.gov.

Information return documents are filed and reported by employers, financial institutions, government agencies, and other payers to both the payees and the IRS. These documents provide information that can help taxpayers file their returns. The information is available for tax years 2023, 2024, and 2025 and can be found under the Records and Status tab in the taxpayer’s IRS Individual Online Account.

For more information, visit IRS Online Account for Individuals

https://www.irs.gov/payments/online-account-for-individuals

Sign in or create an online account. Review the amount you owe, balance for each tax year, payment history, tax records and more.

02/05/2026

https://www.irs.gov/newsroom/tax-credits-for-individuals

Tax Tip 2026-10, Feb. 5, 2026 — A tax credit reduces the amount a person owes in income taxes dollar-for-dollar.

01/09/2026

Trump Accounts for Kids – Quick Guide

✅ Kids born 2025–2028: Eligible for a $1,000 government seed deposit in a new tax-advantaged Trump Account. Parents can also contribute up to $5,000/year.
✅ Kids born before 2025: Parents can still open Trump Accounts and contribute up to the annual limit, but no $1,000 federal seed money (some may get small philanthropic contributions, e.g., $250 from Dell donation programs).

📄 How to set up:
1. File IRS Form 4547 (can be included with your 2025 tax return)
2. Wait for account activation (accounts go live around July 2026)
3. Start contributing and let funds grow tax-deferred until age 18

01/09/2026

📢 NC TAX ALERT: Big Federal Changes vs. Our State Reality 📢

If you’re a senior, parent, tipped worker, business owner, or recently bought a car or equipment, there’s a growing gap between new federal tax law (“The One Big Beautiful Bill”) and our state’s tax rules.

Right now, our state is still using older tax laws. If we file your NC return today, you cannot claim many of the new federal benefits on your state return.

Here’s where the gaps are 👇

👵 SENIORS (65+): New $6,000 Federal Deduction
The federal government now allows an extra $6,000 deduction per senior ($12,000 for couples).
Our state gap: NC does not recognize this yet, so the deduction is added back and taxed at the state level.

👶 PARENTS: Child Tax Credit Update Under Consideration
Federally the Child Tax Credit increased (up to about $2,200 per child).
Our state gap: NC hasn’t adopted this yet — but legislation has been introduced that would reenact/expand a state Child Tax Credit tied to the federal credit. (It’s currently under consideration in the legislature.) 

💸 SERVICE WORKERS: “No Tax on Tips” (Federal)
The IRS allows a federal deduction for qualified tips (up to $25,000).
Our state gap: Our state still taxes 100% of tips, even when they’re deducted federally.

🚗 CAR OWNERS: Loan Interest Deduction
Federal law allows a deduction of up to $10,000 for interest on loans for new, U.S.-assembled vehicles.
Our state gap: Our state does not allow this deduction.

📉 STANDARD DEDUCTION GAP
Federal standard deduction for married couples is $31,500.
Our state gap: NC is capped at $25,500, meaning more income is taxed at the state level.

🏢 BUSINESS OWNERS: 100% BONUS DEPRECIATION
Federal law allows 100% immediate expensing for qualifying assets, including 5-, 7-, 10-, and 15-year property.
Our state gap: NC requires a large add-back and forces the deduction to be spread over 5 years, even for 7-, 10-, or 15-year assets, creating a potentially big upfront state tax bill.

🌪️ DISASTER RELIEF
Federal storm-related tax relief has not yet been fully adopted by our state.

⸻

🧠 THE STRATEGY: WHY AN EXTENSION MAKES SENSE

Our state legislature meets this spring to decide whether to conform to these federal changes — including a possible state Child Tax Credit update.
Filing now locks in older, more expensive rules. Filing an extension gives us a chance to benefit from changes that may get adopted — potentially saving hundreds or thousands without needing an amended return later.

01/04/2026

🏢 Non-U.S. Investors: What You Need to Know About Form 1040-NR & U.S. Real Estate

If you are not a U.S. citizen or green card holder and you invest in U.S. real estate — either directly or through a partnership or LLC — you may be required to file Form 1040-NR.

Here’s what matters most:

✅ U.S. rental income is taxable
Rental income from U.S. property is considered U.S.-source income and must be reported on Form 1040-NR, even if the income is paid to a foreign bank account.

✅ Direct ownership vs. partnership ownership
• Direct ownership: You report rental income and expenses directly on your 1040-NR.
• Partnership or LLC ownership: You will receive a Schedule K-1, and your share of income must be reported on your 1040-NR. Partnerships are also required to withhold U.S. tax on foreign partners, even if the property operates at a loss.

✅ Required tax withholding for foreign investors
• Rental income may be subject to U.S. tax withholding during the year
• Partnerships must withhold tax on income allocated to foreign partners
These withholdings are credited on your tax return and may result in a refund if too much tax was paid.

✅ Selling U.S. real estate (important)
When a foreign owner sells U.S. real estate, the buyer is generally required to withhold 15% of the gross sales price at closing. This is not the final tax — it is a prepayment. A tax return must be filed to calculate the actual tax owed and request a refund if applicable.

📌 Investing in U.S. real estate or already receiving rental income?
👉 Visit paztax.com

PazTax | U.S. Tax Reporting for Foreign Real Estate Investors

Tax Preparation - We provide tailored solutions for your unique needs, always staying up-to-date with the latest US tax reporting...

01/04/2026

🌍 U.S. Expats: What You Need to Know About Your 2025 Form 1040

Living outside the U.S. does not remove your U.S. tax filing obligations. If you are a U.S. citizen or green card holder, you must still file Form 1040 and report worldwide income.

Here are the key items for the 2025 tax year:

✅ Worldwide income must be reported
This includes foreign salary, self-employment income, pensions, rental income, and investments — even if the income was already taxed abroad.

✅ Foreign Earned Income Exclusion (FEIE)
If you qualify, you may exclude up to approximately $130,000 per person of foreign earned income from U.S. tax, based on residency or physical presence rules.

✅ Foreign Tax Credit
Taxes paid to another country may be used as a credit to reduce or eliminate U.S. tax on the same income, helping prevent double taxation.

✅ Standard deduction still applies
Expats can still claim the standard deduction (about $15,000 for single filers / $30,000 for married filing jointly), along with other eligible deductions and credits.

✅ Foreign bank account reporting (FBAR)
If the total value of all foreign bank and financial accounts exceeded $10,000 at any time during the year, you must file an FBAR.
This is a reporting requirement only, but penalties for not filing can be severe — even if no tax is owed.

⚠️ PFIC warning for foreign investments
Many foreign mutual funds, ETFs, and investment products are considered PFICs (Passive Foreign Investment Companies) under U.S. tax law.
PFICs can result in very high U.S. taxes and complex reporting, even when there is little or no actual income. Many expats are unaware they own PFICs through foreign brokerage accounts or retirement plans.

⏰ Extended filing deadline
U.S. taxpayers living abroad automatically receive an extension to June 15, but interest on any tax due still begins in April.

📌 Need help with expat taxes or prior-year filings?
👉 Visit paztax.com

PazTax | U.S. Expat Tax Preparation & Planning

Tax Preparation - We provide tailored solutions for your unique needs, always staying up-to-date with the latest US tax reporting...

01/04/2026

📣 2025 Tax Updates – What You Need to Know (Form 1040)

The 2025 tax year includes several important changes that may lower your taxes or increase your refund:

✅ Higher standard deduction
For 2025, the standard deduction increased to approximately:
• $15,000 for Single filers
• $30,000 for Married Filing Jointly
This reduces the amount of income that is taxed before any credits are applied.

✅ New deductions available even if you don’t itemize
Some taxpayers may qualify for additional deductions on top of the standard deduction, including:
• Age 65 or older: an extra deduction of up to $6,000 per person
• Tip income: up to $25,000 of qualifying tips may be deducted
• Overtime pay: certain overtime earnings may be deducted, up to annual limits
• Personal car loan interest: interest paid on a qualifying personal vehicle loan may be deductible
Income limits and documentation requirements apply.

✅ Child Tax Credit increase
The Child Tax Credit increased to $2,200 per qualifying child, which can directly reduce the tax you owe or increase your refund.

✅ Higher deduction for state and local taxes paid
Taxpayers can now deduct more of the state income taxes and property taxes they paid during the year:
• Up to $40,000 for Married Filing Jointly
• Up to $20,000 for Single or Married Filing Separately

✅ New IRS reporting requirements
Some taxpayers may receive new tax forms related to cryptocurrency transactions or interest paid on vehicle loans. These do not always mean more tax, but they must be reported correctly.

💡 Bottom line:
2025 includes higher deductions and credits, but the rules are specific. Proper planning and accurate reporting can make a real difference.

📌 Questions or planning ahead?
👉 Visit paztax.com

PazTax | Professional Tax Planning & Preparation

Tax Preparation - We provide tailored solutions for your unique needs, always staying up-to-date with the latest US tax reporting...

12/06/2025

https://paztax.com/seven-tax-moves-to-make-before-2025-ends-year-end-tax-planning/

Tax Planning 2025, Year-end tax planning 2025