Capital Tax Solutions

02/26/2026

07/07/2025

We will be sending out a more detailed analysis of the new tax bill signed last week, but I wanted to start to clear up a huge issue I'm seeing now.

Social Security income is still taxable.

It has been since the 1980’s, and that has not changed. A recent email from the Social Security Administration was misleading, and unfortunately, it’s causing some people to make poor financial decisions based on incorrect information.

The Big Beautiful Bill, the new tax law did not eliminate taxes on Social Security, regardless of what you've heard or seen online.

Here’s what it did do:

If you are age 65 or older, you may qualify for an additional $6,000 standard deduction. However, this benefit phases out if your income exceeds:

• $75,000 for single filers
• $150,000 for joint filers

This deduction is temporary and only applies for tax years 2025 through 2028.

If you have questions, please reach out to us, but give us a little time — the details are still being clarified, and good advice takes careful review.

Please help spread the word. Misinformation can be costly, especially for retirees on fixed incomes.

06/09/2022

For those of you that are self-employed and track mileage, the IRS announced today that we will have a "split" year for mileage expenses. For January 1 to June 30th, the mileage rate will be 58.5 cents per mile, however for July 1 to December 31 the rate will be 62.5 cents per mile.

For those that track medical or moving miles, the rates for January 1 to June 30th, the mileage rate will be 18 cents per mile, however for July 1 to December 31 the rate will be 22 cents per mile.

This means that you'll need to track your mileage separately for each period as each half year will have different rates.

12/25/2021

The Internal Revenue Service announced Wednesday that it will start sending out information letters to recipients of the Advance Child Tax Credit and of the third round of Economic Impact Payments (Stimulus) that were made in January.

Taxpayers will be required to reconcile any advanced CTC received and the payments with their 2021 tax returns, which are currently expected to be due April 18, 2022.

Letter 6419 for advanced CTC recipients will include the total amount of credits that the taxpayer received. The credits were sent out monthly starting last June 15, and were calculated based on information from taxpayers’ previous returns, so the taxpayer have received too much – or too little.
The advanced CTC letters will start going out this month, and continue into January 2022.

In late January, the IRS will start sending out Letter 6475, “Your Third Economic Impact Payment,” to EIP recipients. That third round, which was sent out starting in March of this year, were advanced payments of the 2021 Recovery Rebate Credit (Stimulus). Like the advanced CTC payments, they were based on information from previous returns, and so will need to be reconciled with the taxpayer’s 2021 tax return.

08/25/2021

Thanks to everyone who voted for us!

03/26/2021

I have been getting many calls about an IRS letter that people have been receiving over the past few weeks so I wanted to clear up some of the confusion over this letter. This letter was purely meant to let you know that the IRS issued you the second stimulus payment in January.

• Yes, this is a real IRS letter
• No, I don’t know why it’s coming so late from the IRS – I’d assume they’re a little busy right now what with the extra work from last minute retroactive tax law changes in the middle of tax season
• No, it does not mean that there is an additional $600 stimulus payment coming
• No, we don’t need a copy of this letter – keep it in your file

I hope this clears up any confusion from this late letter from the IRS.

03/17/2021

The IRS has just announced that they are extending tax season from April 15th to May 17th. Why May 17th? Because May 15th is a Saturday, so it moves to the next Monday.

This means that we now have an additional month to prepare, file and pay any taxes due for 2020 without late payment penalties and interest.

If you reside in Texas and Oklahoma, you will still have until June 15th to file and pay.

However, if you have to pay estimated taxes, your first payment is still due April 15th. Please note that this is different than last year where the first two estimated payments were due July 15th, the same date as the extension of the season.

We are waiting confirmation on what the states will do with regards to this extension, however I would be surprised if they didn't follow along-many of the states have already announced extensions.

We will keep you posted if this changes.

03/11/2021

As many of you have heard, President Biden signed the latest stimulus bill (The American Rescue Plan) today. There will be more stimulus money being sent out based first on your 2020 return, and if you haven't yet filed 2020, it'll be based on your 2019 return - this new round will be $1400 each person, including dependents. So, a family of four with income less than $150,000 will receive $5600.

There are two components of the bill that may affect your 2020 tax return.

First off, if you were on unemployment last year, the first $10,200 of unemployment income will be tax free. If a married couple was both on unemployment, they will both be able to exempt up to $10,200 each.

Second, if you are on the Exchange for health insurance (Obamacare) and you had or will have to pay back part or all of your subsidy, it will be cancelled for 2020 only. I have a client right now who just saved $14,000 on this new law.

Many of you have already filed with one or both of these changes in their 2020 return. Once the IRS gives us direction as to how they want us to handle these changes, and the software companies update the software to handle these new changes, we will be in contact with those clients affected to discuss their options. If you haven't filed yet, I would advise you to hold off until this gets ironed out correctly. While there are only 35 days left in tax season, there is no part of me that thinks that tax season won't get extended again, just like last year. If that becomes official, we will let you know, but as of now, it's all business as usual, whatever that means.

This is everything I know as of yet-the ink is still wet on the new bill. I am taking a class on this new law Tuesday and might have more information then, but I can assure you that once we find out we will let you know.

02/18/2021

Thanks Krisha!

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