Sam Phillips, CPA

11/14/2025

Get Covered Illinois - Here's what we're discovering as Illinois residents are forced to switch from the federal health insurance marketplace (healthcare.gov) to the new Illinois marketplace (getcovered.illinois.gov):

1.) With the future of the "enhanced" premium tax credits uncertain as to its funding with the wrangling in Washington D.C. right now, if you estimate your family income at more than 400% of the federal poverty level (FPL), you will NOT receive any monthly advance premium tax credit (PTC). Here's a table of 400% federal poverty levels:
Family Size Amount
1 $62,600
2 $84,600
3 $106,600
4 $128,600
(Other amounts readily available with online search)

2.) What this means is that unless the "enhanced" PTC amounts are funded, the old "cliff" rules will apply for 2026, and if your final income amounts exceed the 400% limit, you will have to repay the entire year of advance PTC amounts. This is how the reconciliation worked prior to the 2021 ARPA enhancement which was extended by the 2022 Inflation Reduction Act. That's why when you apply for 2026 coverage and estimate your income over the 400% level for your family size, you will not be awarded any advance credits to pay for insurance.

3.) If the "enhanced" PTC are funded, then it will go back to the 2025 rules and the most you'll have to pay for your health insurance coverage will be 8.5% of your income, the "cliff effect" will go away (that's what lawmakers are calling the "enhanced" premium tax credits). I have no clue if they will reinstate the Advanced Enhanced PTC at such time or if taxpayers will have to wait until they file their 2026 income tax return to reconcile and "settle up" at that time.

4.) We are seeing higher deductibles, typically doubled from 2025 and rates typically 30%-50% higher than for the same plan as 2025.

5.) My guess is that the federal marketplace is likely following the same practice, but I cannot confirm that.

6.) I still recommend families with incomes higher than 400% FPL obtain their insurance through the marketplace just in case the enhanced PTC are reinstated. If you get your insurance outside the marketplace, there is no chance for any PTC.

Anyone, 6 months of age and older, is eligible to receive the COVID-19 vaccine. Find your nearest vaccination location at vaccines.gov.

11/13/2025

No Tax on Overtime! Here's what you need to know about this upcoming tax return filing. In order to claim the deduction for any overtime pay, you'll need to have a written statement from your employer showing the amount of overtime pay and how it was calculated (typically final pay stub). The IRS has waived any penalties for employers not providing this information, so the responsibility will fall on the individual employees to be sure you can get this information (print out your final pay stub).

The deduction is limited to the 50% premium portion of the overtime as outlined in the FLSA. If you normally make $20/hr and your overtime rate is $30/hr, only the extra $10/hr is allowed for the deduction. If you got double time pay for some of your overtime pay, only the 50% premium is allowed as the deduction. If your final pay stub shows you have $9,000 of OT pay for the year (calculated at 150% regular rate), then only $3,000 of that pay is eligible for the deduction.

This may not be how you understood it to work, but that's how it works. Don't blame the messenger.

01/28/2025

Sad News!

You are no longer able to purchase Series I Paper Savings Bonds with your federal tax refund.

This was designed for low to moderate income taxpayers to have an easy way to purchase these savings bonds with their tax refund money.

You can still purchase the electronic version of the I-Bonds on the TreasuryDirect web site (link below).

There were only 35,000 taxpayers purchasing them with tax refunds, so they discontinued the program.

This option was costly and not frequently used. The mailing of physical savings bonds was also subject to fraud, theft, loss, and delays. Buying savings bonds online is simple, safe, and affordable.

01/14/2025

If you had insurance coverage on the Marketplace during 2024, the 1095-A forms are ready to download. Log onto your account and download your form and keep that with your year-end tax documents for ease in tax preparation.

01/09/2025

It’s officially tax time! We’re ready when you are.

12/24/2024

Merry Christmas! The injunction that paused all the FINCEN BOI reporting requirements has been lifted. So, we're back to the filing requirements for all state registered companies, i.e. LLCs and Corps. The deadline has been extended for 13 days until January 13, 2025. Contact our office with any questions, and again, Merry Christmas!

10/24/2024

Time is running out for state registered businesses, i.e. LLC's or Corporations, to go online to www.fincen.gov and file their Beneficial Ownership Information report. Any business that was formed by any Secretary of State is required to file this form by December 31, 2024. If you formed your company during 2024, you had/have 90 days to complete the online form. Civil penalties can be $500/day that a "violation continues".

A "Beneficial" owner is anyone that owns at least 25% of the company OR directly or indirectly exercises substantial control over the company.

If you are required to file multiple reports, it may be more efficient to obtain a FINCEN identifier number for the owners.

If you need help with this REQUIRED filing, don't hesitate to contact us.

WASHINGTON—Today, the Financial Crimes Enforcement Network (FinCEN) published its first set of guidance materials to aid the public, and in particular the small business community, in understanding upcoming beneficial ownership information (BOI) reporting requirements taking effect on January 1, 2...