Edmars CPA

02/17/2026

Mistakes and errors on your tax returns can happen, but most are easily avoidable when it comes to filing federal income tax returns. Taxpayers are encouraged to review their entire return before filing to make sure it is correct and complete. This is the case even if someone else prepared it, because ultimately, it’s the taxpayer’s responsibility to ensure the information on the return is accurate.

Here are just a few common errors that can be avoided:

• Filing too soon: Most tax documents should have been received by now, but taxpayers need to be sure they have all their tax reporting documents before filing. The fastest and easiest way for taxpayers to view their tax records is by logging on to their IRS Online Account.

• Incorrect filing status: Be sure to select only one filing status and make sure it is the correct one.

• Inaccurate information: Taxpayers should carefully when entering any wages, dividends, bank interest and other income they receive to make sure they report the correct amounts.

• Misspelled names or missing social security numbers: All names and taxpayer identification numbers must be provided for everyone listed on the return. Social security numbers and names should be entered exactly as they appear on each person’s Social Security card. If there have been any name changes, be sure to contact the Social Security Administration at SSA.gov or call them at 800-772-1213.

• Credits and deductions: There are several new deductions and changes to certain credits for 2026. Taxpayers should make sure any deductions and credits are calculated correctly, and necessary documentation is provided.

• Unsigned return: An unsigned return is considered invalid. If it’s a joint return, both must sign and date. However, exceptions may apply for members of the armed forces or other taxpayers who have a valid power of attorney.

• Incorrect bank account information: Taxpayers who are owed a refund should choose direct deposit. This is the fastest way for them to get their money. However, taxpayers need to make sure they use the correct routing and account numbers on their tax return.

Submitting tax returns electronically ensures greater accuracy. The e-file system often detects common errors and rejects a tax return, sending it back to the taxpayer for correction. This could reduce or eliminate delays in processing a federal tax return.

02/04/2026

Taxpayers are starting to receive their 2025 tax documents, such as W-2s, Forms 1099 or other income documents. People who sold or disposed of digital assets using a broker might receive a new Form 1099-DA from those brokers.

Examples of digital assets include
• Convertible virtual currencies and cryptocurrencies such as Bitcoin
• Stable coins
• Nonfungible tokens

Brokers must send taxpayers a copy of the same information they report to the IRS on Form 1099-DA by Feb. 17,2026. These are different from some other tax statements taxpayers may receive. Most of these statements will not include the basis for DA transactions in 2025 and taxpayers will have to calculate basis to determine their gain or loss.
Every taxpayer must report any related income, gains, or losses, whether they receive a Form 1099-DA or not.

02/04/2026

The One, Big, Beautiful Bill has a significant effect on federal taxes, credits and deductions. Millions of taxpayers reported earning tips and overtime on their tax returns, many of them are veterans and people working in lower wage jobs. This relief will impact most of these taxpayers and they can start taking advantage of the deduction this filing season.

No tax on tips --

Employees and self-employed individuals may deduct qualified tips received in certain qualified occupations, such as wait staff, bartenders, salon workers, personal trainers, gig economy workers, and many more who customarily and regularly receive tips might qualify.

Even better, tips earned on or before December 31, 2024, and are reported on a Form W-2, Form 1099, or other statement furnished to the individual or reported directly by the individual on Form 4137 can be deducted.

• “Qualified tips” are voluntary cash or charged tips received from customers or through tip sharing
• Maximum annual deduction is $25,000; for self-employed, deduction may not exceed individual’s net income, without regard to this deduction, from the trade or business in which the tips were earned
• The deduction phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers)

No Tax on Overtime

Individuals who receive qualified overtime compensation may deduct the pay that exceeds their regular rate of pay, generally, the “half” portion of “time-and-a-half” compensation, that’s required by the Fair Labor Standards Act and reported on a Form W-2, Form 1099, or other specified statement furnished to the individual.
• Maximum annual deduction is $12,500 ($25,000 for joint filers)
• Deduction phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers)
• The deduction is available for both itemizing and non-itemizing taxpayers

08/01/2025

05/23/2025

Taxpayers and tax professionals: Beware of these common tax scams

Scammers work hard to try to steal money and personal information during tax season and all year long. Taxpayers and tax professionals should remain alert and aware of these common scams to avoid losing money, personal information or client data.

*Social media: Fraudulent form filing and bad advice*
Social media can circulate inaccurate or misleading tax information, and the IRS has recently seen schemes that encourage people to submit false, inaccurate information in hopes of getting a refund or taking advantage of a credit, such as the Employee Retention Credit and the Fuel Tax Credit. Taxpayers should always remember that if something sounds too good to be true, it probably is.

*Bogus self-employment tax credit*
Social media advice continues to circulate about a non-existent “Self-Employment Tax Credit” that’s misleading taxpayers into filing false claims. Promoters market it as a way for self-employed people and gig workers to get payments of up to $32,000 for the COVID-19 pandemic period.

In reality, the underlying credit being referred to in social media is not called the “Self-Employment Tax Credit,” it’s a much more limited and technical credit called the Credits for Sick Leave and Family Leave. Many people simply do not qualify for these credits, and the IRS is closely reviewing claims coming in under this provision.

*Online Account help from third-party scammers*
Scammers pose as a "helpful" third party and offer to help create a taxpayer's IRS Online Account at IRS.gov, but their real goal is to steal personal information. Taxpayers should access their account directly through IRS.gov.

*Phishing and spearphishing*
Taxpayers and tax professionals should be alert to fake communications posing as legitimate organizations in the tax and financial community, including the IRS and the states. These messages arrive in the form of an unsolicited text or email to lure victims into providing valuable personal and financial information that can lead to identity theft.

Spearphishing is a tailored phishing attempt targeting a specific individual or group. Tax professionals need to be very careful about spearphishing because of the risk of a data breach. A successful spearphishing attack can ultimately steal client data and the tax preparer's identity, allowing the thief to file fraudulent returns.

*Unscrupulous tax return preparers*
Most tax preparers provide outstanding and professional service. However, people should be careful of shady tax professionals and watch for common warning signs, including charging a fee based on the size of the refund. A major red flag or warning sign is when the tax preparer is unwilling to sign on the dotted line. Avoid these "ghost" preparers, who will prepare a tax return but refuse to sign or include their IRS Preparer Tax Identification Number as required by law. Taxpayers should never sign a blank or incomplete return.

*Offer in compromise mills*
Offers in compromise are an important program to help people who can't pay to settle their federal tax debts. But "offer in compromise mills" can aggressively promote offers in compromise in misleading ways to people who clearly don't meet the qualifications, often costing taxpayers thousands of dollars. A taxpayer can check their eligibility for free using the IRS Offer in Compromise Pre-Qualifier tool.

05/21/2025

Here are the federal tax brackets for the upcoming 2025 tax season.

05/21/2025

The Senate on Tuesday passed a bill that would eliminate federal taxes on tips, advancing with the help of Democrats a top campaign promise of President Trump.

Sen. Jacky Rosen (D-Nev.) brought the bill to the floor with the expectation that it would be blocked, but Sen. Ted Cruz (R-Texas) declined to. It passed via unanimous consent (UC).

“I just want to say: This is great news for Nevada,” Rosen said after the bill was advanced, lauding the work of the millions of hospitality and service workers in her home state, who she says are being “squeezed by rising costs.”

“This bill is not the be-all, end-all, but it’s going to offer immediate financial relief while the Senate continues to work to lower costs and find other avenues of relief for hardworking families,” she said before yielding the floor.

Trump unveiled the idea last year during a campaign stop in Nevada, which is home to scores of tipped workers.

Cruz noted in his floor remarks in support of Rosen’s UC request that the Nevada senators — Rosen and Sen. Catherine Cortez Masto (D-Nev.) — relayed that roughly 25 percent of Nevada workers rely on tips. Rosen said that the Silver State has more tipped workers per capita than any other.

“Nevadans, our families, are being squeezed, and we need real relief,” Rosen said in her floor remarks. “For some, many service and hospitality workers, tips aren’t extra, it’s part of their income that they use to make ends meet.”

The Texas Republican spoke up in support of the bill immediately after, explaining the genesis of the push by Trump during the campaign and hailing it as a moment of “political genius” by the president to back the idea.

The bill, the No Tax on Tips Act, will now head to the House, where the provision is expected to be passed one way or another — be it via the stand-alone measure or Trump’s “big, beautiful bill” that will extend tax cuts.

“Here’s the good news: With what we just saw now, the certainty that we will see no tax on tips become the law of the land, I think, is very close to 100 percent,” Cruz said. “One way or another, no tax on tips is going to become law.”

The legislation would establish a new tax deduction of up to $25,000 for tips, among other things.

- The Hill, Al Weaver

05/19/2025

Capital and Ordinary Operating Expenses - Did You Know?

If you have business income, including income from self-employment activities, then you may have both capital expenses and ordinary operating expenses. Capital expenses relate to assets with lasting usefulness, like equipment, computers, machinery and furniture. Different tax rules apply for these two types of expenses, so make sure to keep them separate.

05/12/2025

Main Home Sale - Did You Know?

Selling valuable assets like real estate often results in a substantial gain, subject to federal capital gains tax. However, you may be able to exclude most or all of the gain from selling your main home from your taxable income. Before you sell, find out whether you qualify for the Primary Home Sale Exclusion.

05/07/2025

Payment plans can help you cover unpaid taxes with the IRS.

Learn more at https://ow.ly/AraQ50VIPLg.