James J Pupelis & Associates, Ltd

01/01/2026

2025 has brought the most tax return changes I have seen in many years. Many taxpayers itemizing in 2024 may find themselves taking the standard deduction in 2025. And many other taxpayers taking the standard deduction in 2024 may find themselves itemizing.

As always, I will help you file the best tax return for you I can.

I will be preparing tax returns 3 ways again this year:

1. Priority Mail or drop off your tax paperwork to my home or my office.

2. Make an appointment and meet at my West Dundee Office. Spring Hill Executive Suites, 600 Spring Hill Ring Road, Suite #103, West Dundee, IL 60118.

3. You can also email me PDF copies of all your tax paperwork.
It is your choice! Choose the method you prefer and easiest for you.

Like before, my days at the offices are Tuesday’s, Wednesday’s, Saturday’s and Sunday’s and the hours are 9:30 AM, 11:00 AM, 12:30 PM, 2:00 PM and 3:30 PM.

Let me know your preference and when you are ready and we can make the appointment best for you?
As always, feel free to call me or email me or text me if you have any questions or just need help putting together a list of incomes and deductions.
If you would like me to send you a 2025 tax organizer to help with gathering your 2025 tax information, let me know? I will be glad to either email or mail you a copy. Let me know your preference?
Regards,
Jim

James J Pupelis
1757 Kelley Lane
Pingree Grove, IL 60140
Email: [email protected]
Website: jamesjpupelis.com
Jim Cell 630 651-0011
Jim Fax 844 740-7516

12/15/2025

Plenty of tax changes are lining up as the calendar turns toward 2026, and knowing what’s coming can help you stay a step ahead. Before then, there’s also several moves to make filing your 2025 tax return as easy as possible.

Preparing to file your 2025 tax return
Getting Ready For Taxes imageGather records to support deductions for no tax on tips and no tax on overtime. Review the approved occupations for qualified tips and confirm the amount of this benefit you expect to claim in 2025. You will need proof of these claimed amounts. The same holds true for overtime pay. Employers are not required to issue W-2s or 1099s with this information in 2025, but they should provide you with the necessary confirmation of the dollar amounts. Compare these employer-provided amounts with your records to ensure they match prior to filing your tax return.

Look for new Form 1099-DA. If you own cryptocurrency or other digital assets, you may see this new form. Starting with the 2025 tax year, exchanges and brokers must report certain cryptocurrency and digital asset transactions, so you should track cost basis, sale dates, and wallets used to avoid mismatches or questions from the IRS.

1099-Ks may still be issued. You shouldn’t see a Form 1099-K from a payment processor such as PayPal or Venmo unless you have 200 or more transactions amounting in more than $20,000 in payments from the processor. But because of the many tax law changes in this area you may still receive a Form 1099-K in error. If you receive one, don’t throw it away! Include it with your other tax documents for proper reporting on your 2025 tax return.

Review IRA and HSA accounts. If you have an IRA or HSA account, you can make 2025 contributions up until either April 15, 2026 or the date you file your return, whichever is earlier.

What’s new in 2026
Above-the-line charitable contributions. You can deduct $1,000 of charitable contributions if single or $2,000 if filing jointly. This is available to you whether you use the standard deduction or itemize your deductions. There's also the introduction of a 0.5% floor for itemizing charitable contributions.

Itemized deduction phaseout is back. If you’re in the top 37% tax bracket, your itemized deductions could be reduced. This phaseout of deductions is being re-introduced beginning in 2026.

Gamblers take a loss. Losses from wagering transactions are now limited to 90% of such losses. Under the previous law you could claim deductions up to the amount of your winnings. For example, if you won $10,000 and incurred $15,000 in losses over the course of a tax year, you could deduct $10,000 using the previous law. Under the new law you can only deduct 90% of your losses, or $9,000 in this example.

Mortgage insurance premiums can be reported as an itemized deduction.

Elimination of many energy credits. This includes the credit for purchasing electric vehicles after September 30, 2025 and the elimination of many residential energy efficient purchase credits at the end of 2025. So plan accordingly.

Regards,

Jim Pupelis
[email protected]

10/24/2025

To all my friends as we get ready for your 2025 Tax year filing.
The landscape for 2025 US taxes is shaped by significant recent legislation, including the sunset of many provisions from the 2017 Tax Cuts and Jobs Act (TCJA) and the introduction of new deductions.

1. Evaluate Itemizing vs. the Standard Deduction.
With the TCJA provisions scheduled to sunset, this decision is critical:
Revised 2025 standard deduction amounts. These are the final standard deduction amounts for tax year 2025:

• Single filers and Married filing separately: $15,750
• Married couples filing jointly: $31,500
• Head of household: $23,625

2. Take Advantage of New Deductions:

The new tax law introduced several temporary deductions for 2025-2028:
• "No Tax on Tips" Deduction: Eligible employees and self-employed individuals can deduct up to $25,000 of qualified tip income (subject to income phase-outs).
• "No Tax on Overtime" Deduction: Certain workers may deduct up to $12,500 of qualified overtime compensation (subject to income phase-outs).
• Yes, the standard deduction is now higher than ever ($31,500 for married couples, $15,750 for singles in 2025), which has made itemizing less common. But with an increase of the state and local tax (SALT) deduction from $10,000 to $40,000, you may be shifting back to itemizing your deductions without realizing it.
• Car Loan Interest Deduction: Individuals may deduct up to $10,000 of interest paid on a qualified auto loan for a personal-use vehicle assembled in the U.S. (subject to income phase-outs).
• Enhanced Deduction for Seniors: Taxpayers aged 65 and older may be eligible for an additional deduction (up to $6,000), regardless of whether they itemize.

3. Maximize Retirement and Health Savings

These remain powerful tools for reducing your taxable income:
• Traditional 401(k) / IRA: Max out contributions to traditional retirement accounts. Contributions are tax-deductible (or pre-tax), reducing your current year's taxable income. Be aware of the contribution limits for 2025.
• Health Savings Accounts (HSAs): If you have a High Deductible Health Plan, contributing to an HSA offers a triple tax advantage: contributions are tax-deductible, investments grow tax-free, and withdrawals for qualified medical expenses are tax-free.

4. Review Changes to Key Credits and Exemptions

• Child Tax Credit (CTC): The maximum credit is permanently increased to $2,200 per qualifying child, with higher income phase-out thresholds.
• SALT Cap Adjustment: The cap on the State and Local Tax (SALT) deduction has been temporarily raised from $10,000 to $40,000 for taxpayers with income below a certain threshold. High-income earners will still face a phase-down toward the $10,000 cap.
• Personal Exemptions are Gone: The new law permanently eliminates personal and dependent exemptions, which were originally set to return in 2026.

As always, contact me if you have any questions.

Jim Pupelis
[email protected]

09/02/2025

My client received Illinois Form T-2 in the mail today. It looks official and is asking you to send personal information. This a burial insurance scam. Do not respond and throw the letter or postcard in the garbage. I have attached a Google response to tell you more. Any questions, call or email me or text me. Jim Pupelis.

Have you received a T-2 benefit form? Wondering if you should mail the card back? Learn why you should be wary of the T-2 form.

07/08/2025

I have been getting calls, emails and texts asking me how the The "One Big Beautiful Bill Act" (OBBBA) will affect their taxes for 2025. The bill is 900 pages long and still has a lot of analysis left, but, as I see it most taxpayers should see a nice reduction in their 2025 federal income taxes.

This is preliminary, but here are some of the key takeaways as I see them:

The "One Big Beautiful Bill Act" (OBBBA) significantly impacts the standard deduction for 2025 and beyond. Here's a breakdown:
Base Standard Deduction (2025):
• Single Filers: $15,750
• Married Filing Jointly: $31,500
• Head of Household: $23,625
These amounts are set to be indexed for inflation annually after 2025. The OBBBA permanently extends the doubled standard deduction that was part of the 2017 Tax Cuts and Jobs Act (TCJA), which was originally scheduled to revert to lower amounts after 2025.
Additional Deductions for Seniors (Age 65+):
The OBBBA introduces significant enhancements for taxpayers aged 65 and older:
• Existing Additional Standard Deduction:
o For single filers or heads of household aged 65 and over, the additional deduction is $2,000.
o For married couples filing jointly where both spouses are 65 or older, the additional deduction is $1,600 per qualifying spouse (totaling $3,200 if both are eligible).
o If a taxpayer is also blind, these amounts are typically doubled.
• New "Bonus" Deduction (Temporary, 2025-2028):
o The OBBBA adds a temporary $6,000 bonus deduction for individuals aged 65 and older.
o This bonus deduction is available to single filers with income up to $75,000 and married couples with income up to $150,000, with a phase-out above those levels.
Total Standard Deduction for Seniors (2025, under OBBBA):
When combining the regular standard deduction, the existing additional deduction for seniors, and the new bonus deduction, eligible seniors could see substantially higher deductions:
• Single, Age 65+: $15,750 (base) + $2,000 (age-based) + $6,000 (bonus) = $23,750
• Married Filing Jointly, Both 65+: $31,500 (base) + $3,200 (age-based) + $12,000 (bonus, if both eligible) = $46,700
It's important to note that the $6,000 bonus deduction for seniors is a temporary provision, currently set to expire after 2028. Additionally, unlike the standard deduction, the $4,000 (pre-OBBBA) and $6,000 (OBBBA) additional deductions for seniors are available even if they itemize their deductions.

More to come.

Jim Pupelis
[email protected]

12/14/2024

I will be preparing tax returns 3 ways again this year:
1. Priority Mail or drop off your tax paperwork to my home or my office.
2. Make an appointment and meet at my West Dundee Office. Spring Hill Executive Suites, 600 Spring Hill Ring Road, Suite #103, West Dundee, IL 60118.
3. You can also email me PDF copies of all your tax paperwork.
It is your choice! Choose the method you prefer and easiest for you.
Like before, my days at the offices are Tuesday’s, Wednesday’s, Saturday’s and Sunday’s and the hours are 9:30 AM, 11:00 AM, 12:30 PM, 2:00 PM and 3:30 PM.
Let me know your preference and when you are ready and we can make the appointment best for you?
As always, feel free to call me or email me or text me if you have any questions or just need help putting together a list of incomes and deductions.
If you would like me to send you a 2024 tax organizer to help with gathering your 2024 tax information, let me know? I will be glad to either email or mail you a copy. Let me know your preference?
Regards,
Jim
James J Pupelis
1757 Kelley Lane
Pingree Grove, IL 60140
Email: [email protected]
Website: jamesjpupelis.com
Jim Cell 630 651-0011
Jim Fax 844 740-7516

11/17/2024

Watch Out for These Tax Myths

Many myths about the IRS and the tax code have been amplified online in recent years. Here are several myths that if you believe them, could leave you with an expensive tax surprise.

Myth #1: Retirement money is always tax free.

You have retired and withdraw from a 401(k) fully expecting that you won’t owe income taxes. Unfortunately, money withdrawn at any age from a 401(k) – or your traditional IRA – incurs income taxes at your current tax rate.

Lesson Learned: Understand how money in each of your retirement accounts is taxed when withdrawn. Some will have income taxes, some could incur early withdrawal penalties, while some incur no tax at all!

Myth #2: The government won't find out about a big gambling win.

Gambling winnings are considered taxable income to the feds and most states. The IRS generally wants about a quarter of your winnings from sweepstakes, casinos, bingo, keno, online sports betting, and the like. Casinos and other betting entities also inform the IRS of your winnings over certain thresholds. So it is always best to keep track of your winnings.

Lesson Learned: Gambling winnings fall under tax rules just like other forms of income. Deducting gambling losses is possible, but it has limits that are subject to strict rules. For example, you must itemize deductions on your tax return if you don't declare yourself a self-employed professional gambler.

Myth #3: Government benefits like unemployment and Social Security aren't taxable.

Unfortunately, unemployment and Social Security benefits are usually taxable. Unemployment benefits are taxed at your normal tax rate as income at the federal level and in some states. Social Security is taxed, but in a much more confusing way. Supplemental Security Income payments, on the other hand, are not taxable.

Lesson Learned: Plan ahead to mitigate the tax shock. You can have taxes withheld from your unemployment benefits so you don't have to pay a lump sum when you file your return. With Social Security benefits, understand when and how they can be taxed, since up to 80% of these benefits could be subject to income tax by the federal government.

Myth #4: I work from home and can write off my office expenses.

You can only deduct home office expenses if you operate a business out of your home. If you're an employee, you're out of luck. If you do run a business exclusively out of your home, there are still hurdles to clear before you qualify to use the home office deduction.

Lesson Learned: Tax rules can be complicated, even for something that seems as simple as a home office deduction.

If there's one common theme here, it's that tax laws can be complex even when they seem simple on the surface. When in doubt ask for help.

James J Pupelis & Associates, Ltd.
Pingree Grove and West Dundee, IL
630 651-0011

10/24/2024

Think Before Tapping 401(k)s and IRAs as Emergency Fund

All Americans are now allowed to withdraw up to $1,000 every year from retirement accounts to pay for a broad range of emergency expenses. There are several reasons, however, why you should avoid tapping your retirement accounts at all costs.

Reasons to leave retirement funds alone

You’re diluting your retirement savings. Although the money comes in handy now, you’re chipping away at your nest egg and forfeiting growth. For example, if you withdraw $100,000 that would earn 6% annually tax-deferred for ten years, you give up a whopping $79,000 in lost earnings!

It may be bad timing. Experts say it's difficult to time the markets in the current volatile environment. If you sell some holdings right now, you may be locking in losses that would miss future appreciation.

You still owe income tax. Even if it's for an emergency, income tax is due on all withdrawals from traditional 401(k)s and IRAs.

You may also owe a penalty. You may have to pay a 10% penalty on your withdrawal if it doesn't qualify for an IRS-defined exception.

Ideas to find cash

Instead of tapping into retirement funds, here are some ideas to generate the cash you need:

Sell unwanted items. Take a look around your home for items that you no longer use such as clothes, electronics, or furniture, and sell them through an online marketplace.

Rent out a room or other property. If you have extra space in your home, consider renting it out or finding a more long-term tenant. Be sure to check with your local government for rules on short-term rentals.

Freelance or gig work. Many companies are looking for part-time workers and independent contractors instead of committing to a full-time employee. Consider reaching out to local businesses to offer your expertise, in addition to creating an online profile through platforms that are popular for consultants.

James J Pupelis
600 Spring Hill Ring Road Suite 103
West Dundee, IL 60118
630 651-0011

08/19/2024

Beware of Scammers Targeting Your Tax Info, Warns IRS

Social media is an easy way for scammers and others to try encouraging people to pursue some really bad ideas, and that includes ways to magically increase your tax refund.

Tax scammers continue to become more sophisticated, which means it’s more important than ever to pay attention to any person or message asking you to provide confidential information. Here are several of the more prevalent scams to be on the lookout for, according to the IRS.
* Phishing and smishing. Taxpayers continue to be bombarded with email and text scams from fraudsters attempting to lure you into providing valuable personal and financial information that can lead to identify theft. Phishing involves fraudsters sending emails claiming to come from the IRS, while smishing uses text messaging and alarming language such as Your account has now been put on hold!��What you can do: Never respond to phishing and smishing messages, and never click on a link! Report all unsolicited emails, including the full email headers, claiming to be from the IRS to [email protected].
* Online help to create an IRS account. A scammer may offer to help you set up an online account on www.irs.gov. While the IRS’s online account tool can provide convenient access to your tax information, it’s also a valuable source of information for identity thieves who use information from your account to submit fraudulent tax returns using your name in order to get a big refund.��What you can do: Schedule an appointment with someone you trust if you need help creating an online IRS account.
* Fake charities asking for donations. Scammers masquerading as charitable organizations try to lure you into making a contribution after natural disasters and other publicized tragedies. Scammers also use fake charities to swipe personal and financial information from you, in addition to targeting certain groups such as senior citizens.��What you can do: Visit www.irs.gov, then search for Tax-Exempt Organization Search Tool. Use this tool to confirm that a charity to whom you want to donate is a legitimate organization registered with the IRS.
* Fake tax advice and AI tools. Social media routinely circulates inaccurate and misleading tax information. These articles and videos share wildly inaccurate tax advice, including some that involve urging people to misuse common tax documents such as Form W-2 or Form1099. They will make is especially convincing by using AI as a buzz word.��What you can do: Don’t turn to the internet for tax advice. Remember, AI-generated ideas can also pull in inaccurate information as well!
It's easy to fall victim to tax scams. So stay vigilant and if you see a scam, let everyone know. It's with increased awareness that we can decrease the number of scam victims.

Regards,

Jim Pupelis

James J Pupelis & Associates, Ltd.
Spring Hill Executive Suites
600 Spring Hill Ring Road Suite #103
West Dundee, IL 60118

Email: [email protected]
Website: jamesjpupelis.com
Jim Cell 630 651-0011
Jim Fax 844 740-7516

12/31/2023

I will be preparing tax returns 3 ways this year:

1. Priority Mail or drop off your tax paperwork at my home - 1757 Kelley Lane, Pingree Grove, IL 60140.

2. Make an appointment and meet at my new West Dundee Office. Spring Hill Executive Suites, 600 Spring Hill Ring Road, Suite #103, West Dundee, IL 60118. For help with directions finding my new office, it is in the Spring Hill Mall area and is the brick building adjacent to the Jewel Food Store just west of Route 31 just north of Route 72 (Higgins Road). My Bloomingdale and Hampshire Offices are now closed.

3. You can also email me PDF copies of all your tax paperwork.
It is your choice!

Like before, my days at the offices are Tuesday’s, Wednesday’s, Saturday’s and Sunday’s and the hours are 9:30 AM, 11:00 AM, 12:30 PM, 2:00 PM and 3:30 PM.

Let me know your preference and when you are ready and we can make the appointment best for you?

Regards,
Jim

James J Pupelis
1757 Kelley Lane
Pingree Grove, IL 60140
Email: [email protected]
Website: jamesjpupelis.com
Jim Cell 630 651-0011
Jim Fax 844 740-7516

12/31/2023

I will be preparing tax returns 3 ways this year:

1. Priority Mail or drop off your tax paperwork at my home - 1757 Kelley Lane, Pingree Grove, IL 60140.

2. Make an appointment and meet at my new West Dundee Office. Spring Hill Executive Suites, 600 Spring Hill Ring Road, Suite #103, West Dundee, IL 60118. For help with finding my new office, it is in the Spring Hill Mall area and is the brick building adjacent to the Jewel Food Store just west or Route 31 and just north of Route 72 (Higgins Road). My Bloomingdale and Hampshire Offices are now closed.

3. You can also email me PDF copies of all your tax paperwork.
It is your choice!

Like before, my days at the offices are Tuesday’s, Wednesday’s, Saturday’s and Sunday’s and the hours are 9:30 AM, 11:00 AM, 12:30 PM, 2:00 PM and 3:30 PM.

Let me know your preference and when you are ready and we can make the appointment best for you?

Regards,
Jim

James J Pupelis
1757 Kelley Lane
Pingree Grove, IL 60140
Email: [email protected]
Website: jamesjpupelis.com
Jim Cell 630 651-0011
Jim Fax 844 740-7516

12/02/2023

Well, it is almost tax return and I am already receiving requests for tax appointments.

But, let me first tell you about a fraudulent scheme asking for your personal information that us currently going around. Individuals are receiving emails announcing the issuance of another stimulus check for $976 directly from the IRS website.

The email is asking for all of your personal information, name address, social security number, date of birth and driver's license number. This is not true and is a fraudulent request. You are told you have to respond by December 15th in order to qualify for the stimulus check. The IRS is not giving out more stimulus money, at least, not at this time.

Ignore this request and trash it and delete it. The IRS will never send you an email or call you on the phone.

Call or email me if you have any questions about this or any other tax matter.

Merry Christmas to you and your family.

Jim Pupelis
1757 Kelley Lane
Pingree Grove, IL 60140
[email protected]
630 651-0011