Allday CPA Group

06/01/2026

Summer Activities and Taxes – Did You Know?

Summer is a time to relax and have fun, but some seasonal activities may have tax consequences. Being aware of them now may save you time and hassle later.

If your child attends a day camp so you can work or look for work, some of the cost may qualify for the Child and Dependent Care Credit. Be sure to keep records and obtain the camp's tax identification information.

Students with summer jobs may be entitled to tax refunds if income tax is withheld from their pay. Adults earning income from seasonal, part-time, or gig work may need additional withholding or quarterly estimated tax payments.

Summer is also a popular wedding season. If you change your name after marriage, update your records with the Social Security Administration. If you move, update your address with the IRS and submit a new Form W-4 to your employer so your withholding reflects your current tax situation.

05/29/2026

National 529 Day – Did You Know?

If you put money into a 529 education savings plan, earnings may be withdrawn federal income tax-free when used for qualified education expenses. Qualified expenses can include tuition, fees, books, supplies, computers, and for students enrolled at least half-time, certain room and board costs.

While 529 contributions are not deductible for federal income tax purposes, many states offer a full or partial state income tax deduction or credit for contributions. Some states and plan sponsors may also offer special incentives around National 529 Day.

Recent law changes expanded the use of 529 plans. In 2026, up to $20,000 per year, per student, may be used for qualified K–12 education expenses at public, private, or religious schools. Prior years were generally limited to $10,000 annually.

05/27/2026

How to Convert Your S Corporation into a Tax-Favored QSBC

Let’s turn our attention to an increasingly valuable tax planning opportunity involving qualified small business corporation (QSBC) stock, especially in light of recent law changes.

QSBCs—essentially, certain qualifying C corporations—offer powerful tax advantages.
https://www.alldaycpas.com/blog2.php?id=2071

05/27/2026

One-Time Pay: 1099, Kiddie Tax, IRA—Get It Right, Now

Here’s an often-overlooked tax strategy that can generate substantial family tax savings when handled correctly. If you pay a family member (or even a non-relative) for a one-time project, the tax treatment can be highly favorable—but only if you follow the proper reporting rules.

For example, paying a college-aged child $23,255 for legitimate services can produce significant benefits. In one case, this created an $8,593 tax deduction for the payor, while the student owed only $713 in tax—resulting in a net family tax savings of $7,880. And of course, the student has the $23,255.

But beware. There are three critical areas where mistakes commonly occur. https://www.alldaycpas.com/blog2.php?id=2070

05/27/2026

Lawmakers Punish Employers: Break-Room Coffee Not Deductible

There is an ugly tax law change taking effect in 2026 that could affect a common workplace practice: providing coffee, snacks, and other small refreshments to employees.

For years, these items have been treated as de minimis fringe benefits, meaning employees are not taxed on them, and employers were generally allowed a deduction. But beginning in 2026, the tax code eliminates the employer deduction, even though the benefit remains tax-free to employees.
https://www.alldaycpas.com/blog2.php?id=2069

05/27/2026

How the Augusta Rule Turns Home Rental into Tax-Free Income

Here’s a valuable tax strategy, commonly known as the Augusta rule, that can help you generate tax-free income while claiming a legitimate business deduction.

If you own a business structured as an S corporation, a C corporation, or a partnership, you may rent your personal residence to your business for up to 14 days per year. When this is done correctly, the results are highly favorable: your business deducts the full rental expense while you personally receive the rental income tax-free.
https://www.alldaycpas.com/blog2.php?id=2068

05/27/2026

Make Church and Charity Gifts Business Write-offs

Recent tax law changes make it more challenging to receive meaningful tax benefits from charitable giving.

Under the current 2026 rules, higher standard deductions and new limitations mean many taxpayers receive little or no benefit from itemizing charitable contributions. Additionally, personal donations are made with after-tax dollars, often increasing the overall cost of giving.

But as a business owner, you can beat this problem.
https://www.alldaycpas.com/blog2.php?id=2073

05/27/2026

Claim Motor Home Deductions Right—Or Lose Like Jackson

Here’s an important tax planning opportunity—and caution—regarding the deduction of a motor home used for business purposes.

The Jackson case highlights that many taxpayers lose this deduction not because it is invalid, but because it is improperly structured or documented.
https://www.alldaycpas.com/blog2.php?id=2072

05/18/2026

Qualifying Dependents – Did You Know?

In addition to your children and parents, a number of other individuals may qualify as your dependents for tax purposes. Important factors can include the person's income, how much support you provide, and how much of the year the person lives with you. In some limited cases, even a non-relative who lives with you year round as a member of your household may qualify as a dependent.

05/17/2026