Michael Hanscom Tax and Financial Services

05/09/2026

Taxpayers and practitioners are unsure whether the CP53E notices they have received are scams or simply sent in error, a confusion heightened by the inclusion of a QR code.

02/20/2026

Now you can adjust withholding online.

02/20/2026

https://finance.yahoo.com/personal-finance/taxes/article/marginal-vs-effective-tax-rate-204204231.html

As you’re working on your tax return, you’ll want to know your marginal and effective tax rates. Learn how to calculate each.

02/06/2026

Make tax season stress-free by following these tips for fast and secure filing.
✔️Do: File online and early for faster processing
❌Don’t: Skip checking for deductions or credits

File your PA taxes for free at mypath.pa.gov.

02/06/2026

We are seeing a fair amount of confusion concerning the non-taxable issue and overtime. We'd like to clarify the matter. The OT exemption applies only to the premium portion of your overtime, the 0.50 portion. Your normal wage rate is still taxable. Additionally, this applies only to OT paid for more than 40 hours per week. It does not apply to overtime over 8 hours on any day. Also, it is a deduction, not a credit, and is limited to $12,500 per taxpayer. In conclusion, this tax change has been widely misinterpreted as to the actual tax benefit.

01/29/2026

Did you know that if you had a child born in 2025, you are eligible to sign them up for a "Trump Account" for which the Treasury will deposit $1,000.00 in the account starting in June 2026. If you had a child born in 2025, there is no reason you should not take advantage of this account. Also, this applies to children born between 2025 and 2028. Please see below:

Trump Accounts are new tax-advantaged, custodial-style, long-term savings accounts for children under 18, created under the 2025 "One Big Beautiful Bill Act". Slated to launch on July 5, 2026, these accounts allow government-funded "seed" money ($1,000 for 2025-2028 births) plus private contributions to grow tax-deferred.
Key aspects of Trump Accounts include:
Purpose: To encourage long-term, index-based investing for children's future financial goals.
Eligibility & Seed Money: A $1,000 U.S. Treasury contribution for children born 2025–2028, and a $250 contribution for children under 10 in specific areas.
How They Work: They function like a Traditional IRA for minors. Money is invested, typically in low-cost U.S. stock market index funds, and cannot be withdrawn before age 18.
Contribution Rules: Parents, family members, and employers can contribute, with a combined annual cap typically set at around $5,000.
Management: Administered initially by the Treasury Department, with options to transfer to private brokerages.
Withdrawals: After age 18, the funds can be used, with rules similar to a traditional IRA.
These accounts are designed to provide a financial jump-start for the next generation, often referred to as a "shareholder" model.

01/13/2026

Tax filing season will commence on Monday, 1/26/26.

Prepare to File – IRS Announces First Day of 2026 Filing Season

The IRS announced Monday, Jan. 26, 2026, as the opening of the nation’s 2026 filing season.

The second news release for the IRS’s Get Ready campaign explains additional steps tax professionals and their clients should take before filing tax year 2025 federal income tax returns. These steps include:

Accessing IRS Individual Online Accounts. Users can view account information, make payments, manage communication preferences and protect tax information. Tax professionals can use Tax Pro Account and businesses can use Business Tax Account.
Using direct deposit to receive tax refunds.
Reviewing new 2025 tax law changes, including the tax provisions in the One, Big, Beautiful Bill.
Learning about new Trump Accounts for eligible children.
Knowing how to report income from payment apps and online sales. All income from part-time work, gig activities or sales of goods and services is taxable. Form 1099-K, Payment Card and Third Party Network Transactions, will be issued by payment card companies for any amount and by payment apps and online marketplaces when payments exceed $20,000 and more than 200 transactions occur for the year.
Being familiar with digital assets reporting requirements. Taxpayers who bought, sold or received digital assets, including cryptocurrency, stablecoins or NFT, must report those transactions. Some taxpayers may receive Form 1099-DA from brokers. Regardless, all taxpayers must answer the digital asset question on Form 1040 and report any related income, gains or losses.
Taking these steps and gathering documents now will help ensure a smoother, less stressful experience when filing taxes

12/24/2025

12/03/2025

11/27/2025

🇺🇸 It's Almost Small Business Saturday! 🛍️

​Let's make a big impact in our community! If you're a small business owner, drop your holiday specials, deals, and unique offerings in the comments below! 👇

​Shoppers: Look for your new favorite local spot!


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