Tax Services of Rome

04/04/2026

Your tax preparer might like a chocolate bar though! Only 11 days left to file! Call now to book an appointment 315-838-2881

Taxpayers have a variety of options to consider when paying federal taxes, none of them are paying with candy bars. For more information on the options available to meet your tax obligations visit: irs.gov/payments

03/18/2026

02/13/2026

📋 The IRS taxes most of what you earn. But not everything.

Some income sources are completely excluded from federal taxation. Others got new deductions under the OBBBA that effectively make them tax-free up to certain limits.

Gifts up to $19,000 per recipient per year are tax-free to both the giver and recipient. Married couples can give $38,000 per person. Exceed the annual limit and you file a return, but you still don't owe tax unless you've burned through the $15 million lifetime exemption.

Inheritances are not income. The estate may owe tax if it exceeds $15 million ($30 million for married couples), but the heir receiving the money does not pay federal income tax on it. A handful of states do levy inheritance taxes: Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania.

Two OBBBA provisions are new for the 2025-2028 tax years. Workers in tipped occupations can deduct up to $25,000 in qualified tips. FLSA-covered workers can deduct the overtime premium portion of their pay, up to $12,500. Both phase out above $150,000 MAGI ($300,000 MFJ). These are technically deductions, not exclusions, so the income still shows up on your W-2 and is subject to F**A.

The home sale exclusion is one of the largest tax breaks available. Sell your primary residence after living there 2 of the last 5 years and the first $250,000 in gains ($500,000 MFJ) is tax-free. No age requirement.

One nuance on Roth distributions: they are only tax-free if the account has been open at least 5 years and you are 59½ or older. Early withdrawals of contributions are penalty-free, but earnings withdrawn early may be taxed.

02/05/2026

The IRS is moving away from paper checks. Avoid delays to your refund!

02/04/2026

💰 Trump Accounts become available July 4, 2026.

The accounts function as custodial traditional IRAs for children under 18. The government will deposit $1,000 for children born between 2025 and 2028 who elect to participate.

Parents and others can contribute up to $5,000 annually in after-tax dollars. Earnings grow tax-deferred but are taxed upon withdrawal.

Employers may contribute up to $2,500 per employee, excluded from the employee's taxable income. States, charities, and nonprofits can also contribute without limit.

Investment choices are restricted to low-cost U.S. index funds with expense ratios capped at 0.1%.

No withdrawals are permitted until January 1 of the year the child turns 18. After that, the account follows traditional IRA rules, including the 10% early withdrawal penalty before age 59½.

See comments for more of my thoughts and analysis on these accounts.

02/04/2026

📊 529 plans changed dramatically in 2026.

The annual K-12 limit doubled from $10,000 to $20,000 per student. But that's not the headline.

The real story is what qualifies now. Tutoring by licensed teachers. SAT and AP exam fees. Dual enrollment courses. Even educational therapies for students with disabilities.

And it goes well beyond traditional school. Trade programs, apprenticeships, professional certifications, and licensing exams all qualify. Your kid wants to become a licensed electrician or pass the bar exam? 529 funds work for both.

Two catches worth knowing. First, these are federal rules. Some states like California and New York still treat expanded K-12 expenses as non-qualified for state tax purposes. Check your state before withdrawing.

Second, all K-12 expenses combined share that $20,000 cap. Tuition plus tutoring plus test fees cannot exceed the limit in a single year.

The leftover fund problem also has two solutions now. You can repay up to $10,000 in student loans per beneficiary. Or roll up to $35,000 into a Roth IRA if the account has been open 15+ years.

02/04/2026

💰 The Health Savings Account is the only account in the tax code with triple tax benefits. Contributions are tax-deductible. Growth is tax-free. Withdrawals for qualified medical expenses are tax-free.

No other account does all three.

For 2026, you can contribute up to $4,400 for self-only coverage or $8,750 for family coverage. If you're 55 or older, add another $1,000. To contribute, you need to be enrolled in a high-deductible health plan.

Here's what trips people up. An HSA is not a Flexible Spending Account. FSAs are use-it-or-lose-it. HSA funds roll over every year, forever. You can invest them in mutual funds and let them grow for decades.

There's no deadline on reimbursements either. Pay for a medical expense today, save the receipt, and withdraw the money tax-free in 20 years. The expense just has to happen after you opened the account.

At 65, the HSA becomes even more flexible. You can withdraw for anything without penalty. Non-medical withdrawals are taxed like a traditional IRA, but there's no 20% penalty.

Medical withdrawals stay tax-free. You can also use HSA funds to pay Medicare Part B and Part D premiums.

02/03/2026

The Empire State Child Credit puts money in the pockets of families!

If you have a child younger than 17, check your eligibility and take advantage of this valuable tax credit when you file your tax return→ on.ny.gov/ESCC

02/02/2026

The provides updated inflation adjustments, including standard deduction increases for tax year 2025, reflecting changes from the One, Big, Beautiful Bill. These updated amounts may affect how much income is subject to tax when you file this year. Learn more: https://ow.ly/WL9250XWo6J

01/12/2026

The announced Monday, January 26, 2026, as the opening of the nation’s 2026 filing season. You will have until Wednesday, April 15, 2026, to file your 2025 tax returns and pay any tax due. Don’t forget that IRS.gov has online tools and resources you can use before, during and after filing your federal tax return. For a list of filing season tools, reminders and resources, read: https://ow.ly/1yqq50XTweL

03/14/2025

The filing deadline is April 15 for most filers this year. There are some exceptions for victims of a natural disaster, international fliers and certain members of the military. If you need more time, you can file an extension for free using Free File.

Make sure you get your return filed on time by visiting www.irs.gov/filing.