Most people approach tax season thinking about one thing: getting their return done. What they rarely think about is what the experience looks like from the other side of the desk. Having seen it from both angles, I can tell you there’s a real difference between clients who make a preparer’s job easy and those who quietly make it harder than it needs to be.

Here’s why that matters to you specifically: being a better client isn’t about being polite for politeness’ sake. It translates directly into lower bills, faster turnarounds, and better advice. This is entirely in your own interest.

First, Understand How You’re Being Charged

The way the preparer bills you should shape how you work with them. There are three common arrangements, and each one rewards organization in a different way.

If you’re on a flat fee, the dollar amount doesn’t change whether your documents are immaculate or a complete mess. But here’s what does change: a preparer who powers through your tidy file in two hours now has time to actually think about your situation. That might mean spotting a deduction you’ve been missing for years or flagging something worth changing before next filing season. Advice like that can easily be worth more than the return preparation itself, but it only happens when there’s time and mental energy left over to give it.

Hourly billing leaves no room for ambiguity. Every follow-up email, every clarifying phone call, every minute your return sits untouched while you track down a missing form, it all runs the meter. Most of that extra cost is entirely preventable with a little upfront effort.

The hybrid model, which is a base fee with overage charges for complexity, is the most common setup you’ll encounter. Most preparers are generous about absorbing minor extra work without comment. But when documents arrive in scattered batches, questions go unanswered for days, and the timeline keeps slipping, that goodwill has a limit. And again, the extra charges that result are almost always avoidable.

There’s one more piece to this that doesn’t show up on any invoice. Tax preparers are human, and like anyone doing service work, they have clients they genuinely enjoy and clients they quietly dread. The ones they enjoy tend to get more, for example, a heads-up about a planning opportunity, a faster turnaround when things are hectic, and a little extra thought applied to their situation. Difficult clients still receive competent, professional service. They just don’t get the extras. That’s not a policy; it’s just how people work.

The Three Things That Actually Move the Needle

None of this requires becoming a tax expert. It really comes down to three habits.

Send everything at once, and send it organized. Before you submit anything, set aside an evening to go through your documents. W-2s, 1099s, interest statements, charitable contribution records, mortgage forms, gather everything. If your preparer sends you an intake organizer or questionnaire, use it. It exists because it tells them exactly what they need in the format that’s easiest to work with. If they don’t use one, just organize things logically and label your files clearly. “Scan_final_2” is not a file name. A small amount of effort on your end saves a disproportionate amount of time on theirs.

Don’t send documents as they trickle in. It’s tempting to forward your W-2 the moment it hits your inbox, making you feel like you’ve gotten ahead of things. In practice, piecemeal delivery creates more problems than it solves, for example, things get overlooked, work gets duplicated, and many preparers won’t even open a file until they believe everything has arrived. There are legitimate exceptions: a K-1 that shows up late, a corrected 1099 that comes in after the fact. Any experienced preparer will understand those situations. But make them the exception rather than your default approach.

Respond promptly when they reach out. When your preparer sends you a question, it usually means they’re actively working on your file and have hit a wall they can’t get past without your input. A week-long delay doesn’t just slow things down; it forces them to set your return aside entirely and context-switch back to it later. That kind of stop-and-start cycle costs time, and depending on your billing arrangement, it may cost you money too.

Conclusion

A single organized evening and a commitment to responding quickly when questions come up. That’s genuinely most of what separates the clients’ preparers who enjoy working with them from the ones they don’t. In return, you get a smoother process, a more accurate return, and very likely some guidance you’d never have received if you’d shown up with a shoebox and gone quiet.

Part 1

The One Big Beautiful Bill Act (OBBBA) passed the House on July 3 and was signed into law by President Trump. This comprehensive legislation makes several expiring tax cuts from the 2017 Tax Cuts and Jobs Act permanent while at the same time introducing several temporary provisions through 2028. In this two-part series, we will look at what the OBBBA means for taxpayers. In Part 1, we examine the impact on individual taxpayers; Part 2 will cover the Act’s impact on businesses, trusts, and estates.

Making TCJA Provisions Permanent

The bill primarily focuses on extending individual tax benefits sunsetting after 2025 since business tax benefits from the 2017 TCJA were already made permanent.

Income Tax Rates and Brackets: The current seven-bracket system is becoming permanent, with the highest rate staying at 37 percent.

Standard Deduction: The doubled standard deduction amounts are now permanent. For tax year 2025, this means individuals get $15,000, married couples filing jointly receive $30,000, and heads of household get $22,500.

Child Tax Credit: The credit increases from $2,000 to $2,200 per child, with future inflation adjustments. The credit remains subject to phase-outs beginning at $400,000 for joint filers and $200,000 for other taxpayers.

Alternative Minimum Tax (AMT): The TCJA increases to AMT exemptions are made permanent with inflation adjustments. For 2025, single filers get an $88,100 exemption that phases out at $626,350, while married couples filing jointly receive $137,000 that phases out at $1,252,700.

Changes to Deductions

State and Local Tax (SALT) Deductions: The current $10,000 cap on state and local tax deductions is raised temporarily to $40,000 with 1 percent annual increases through 2029. After that, it reverts to $10,000 in 2030. High earners with modified adjusted gross income in excess of $500,000 face a phase-down of this benefit.

Charitable Deductions: Starting in 2026, taxpayers who don’t itemize can claim an above-the-line deduction for charitable contributions up to $1,000 ($2,000 for married filing jointly). Those who itemize face new limits on deductions with modified carryover rules. The 60 percent contribution limit for cash gifts to qualified charities becomes permanent.

Mortgage Interest: The lower mortgage interest deduction cap of $750,000 (down from the previous $1 million) is made permanent. Interest on home equity debt unrelated to home improvements remains non-deductible.

What’s Eliminated: Several deductions are permanently eliminated, including personal exemptions (which remain at zero), miscellaneous itemized deductions subject to the 2 percent floor (unreimbursed employee expenses, tax preparation fees), and casualty and theft loss deductions except for federal disasters.

New Temporary Provisions (2025-2028)

Senior Deduction: Taxpayers over 65 can claim an additional $6,000 deduction, available whether they itemize or take the standard deduction. This phases out for joint filers earning $150,000 to $350,000 and other taxpayers earning $75,000 to $175,000. According to the White House, this provision will increase the percentage of seniors not paying tax on Social Security benefits from 64 percent to 88 percent.

No Tax on Tips: Workers in traditionally tipped industries who don’t itemize can deduct up to $25,000 of reported tips. This federal income tax deduction doesn’t affect state taxes or payroll taxes for Social Security and Medicare. High earners making over $160,000 are excluded, and the deduction applies to both cash and credit card tips.

No Tax on Overtime: A deduction for qualified overtime pay up to $12,500 ($25,000 for married filing jointly) is available for non-itemizers. This phases out for taxpayers with income over $150,000 ($300,000 for married filing jointly) and disappears entirely at $275,000 for single filers.

Auto Loan Interest: Interest on loans for U.S.-assembled cars becomes deductible up to $10,000, but only for vehicles assembled domestically. The deduction phases out for individuals earning over $100,000 (single) or $200,000 (married filing jointly). Campers and RVs are excluded.

Trump Accounts: New tax-advantaged accounts benefit children under 8. Parents can contribute up to $5,000 annually (adjusted for inflation), with funds locked until the child turns 18. Withdrawals for college, first-time home purchases, or starting a business are taxed at favorable capital gains rates. The government will deposit $1,000 for qualifying U.S. citizen children born between Dec. 31, 2024, and Jan. 1, 2029, with no income limits.

Additional Provisions

529 Education Plans: Tax-free distributions can now cover K-12 expenses at private and religious schools, plus additional qualified higher education expenses, including “postsecondary credentialing expenses.”

Pease Limitations: The previous caps on itemized deductions for high earners are permanently eliminated, replaced by a 35-cent-per-dollar limit on itemized deductions.

Gambling Losses: The ability to deduct gambling losses and related expenses is made permanent, but losses are limited to 90 percent of gains from the taxable year.

Looking Ahead and Conclusion

Tax professionals will be busy helping clients navigate these changes and identify new planning opportunities. The legislation creates a complex mix of permanent and temporary provisions that will require careful tax planning, particularly as the temporary provisions expire after 2028. Taxpayers should consult with tax professionals to understand how these changes affect their specific situations and develop appropriate strategies.

The US tax system is progressive, meaning that the more you earn the more you pay. For the years 2021-2023 there are seven different brackets for each year (2020 was the same structure as well). Which bracket you are in depends on your taxable income; however, your bracket does not equal your tax rate.

Tax brackets work so that you pay part of your income at each level bracket as you move-up in income. In other words, someone in the 32% marginal rate bracket will pay 10% on part of their income, 12% on another part, then 22% on another band of income, 24% on the next tranche and finally, 32% on everything else. In other words, moving into a higher tax bracket does NOT mean you pay higher taxes on all your income.

Below are comparative tables for the taxable years 2021 – 2023. This way you can not only see the tax brackets that apply 2023 taxable income, but the trend changes over time.

Updates to 2023 Tax Rates and Brackets

Over the 3-year period shown below, there are seven brackets with progressive rates ranging from 10% up to 37% and they are the same overall years.

Federal income tax rate brackets are indexed for inflation. The brackets are adjusted using the chained Consumer Price Index (CPI). There were no structural changes to the tax brackets in any of the periods, so the only impact are increases year-over-year due to the inflation indexing.

The inflation adjustment factor for 2023 was 7% for example, raising income thresholds applied to the tax brackets across the board.

Tax Rates and Brackets

Below are the 2021-2023 tables for personal income tax rates. Note, that the 2023 figures below are the amounts applicable to the income earned during 2023 and paid in 2024 when you file your taxes.

Tax Brackets & Rates

Non-fungible tokens (NFTs) have exploded in use and popularity in recent months. NFTs have some special tax considerations to be aware of that can be different than fungible tokens, but before we get into that, let’s look at exactly what NFTs are.

What are NFTs 

Economically speaking, fungible assets are those that can be broken down into units and readily interchanged, like cash. For example, you can take a $100 bill and exchange it for five $20 bills nearly anywhere without an issue. Non-fungible assets cannot be exchanged in such as way because they have unique properties that prevent this. Non-fungible assets are things such as houses, a sculpture like Michelangelo’s David or an Andy Warhol painting. There is only one real original.

 NFTs are “one-of-a-kind” digital assets that can be thought of as certificates of ownership for virtual assets. They can be bought or sold like any other piece of property, but do not have a tangible form themselves. Similar to cryptocurrencies, a blockchain ledger keeps track of ownership; these records can’t be forged because the ledger is maintained by thousands of computers around the world. They are most often used to prove ownership of an “original” digital art piece. 

NFT Tax Basics

Similar to cryptocurrencies like Ethereum or Bitcoin, NFTs are taxable property. The big difference in taxation depends on if you are the creator or an investor.

Creators are taxed when they sell an NFT. If an artist created NFT art and sold it for 4 Ethereum coins worth $3,000 (they are typically traded in cryptocurrencies), then the artist would claim the $3,000 as ordinary income for tax purposes.

Investors are those who buy and sell NFTs. Similar to other trading activities profits, they are subject to capital gains tax rules.

Investor Example

Let’s look at an example of how taxes work for an NFT investor. Assume Jane bought an NFT valued at $3,500 in February 2021 by exchanging 2 Ethereum coins (ETH) she bought a few years ago when they cost $350. At the time of the acquisition of the NFT, Jane would have a long-term capital gain on the exchange of her ETH of $2,800 ($3,500 value of the NFT less her cost basis in the ETH exchanged of $700). Essentially, the exchange of the cryptocurrency triggers taxation of that asset and a new basis is established in the NFT as it’s not really an exchange but a disposal for tax purposes.

Half a year later in July, Jane sells the NFT for $8,500. Here she realizes a short-term capital gain of $5,000 (sale price of the NFT of $8,500 less her basis of $3,500). As with other short-term capital gains, this would be taxed as ordinary income.

Special Circumstances for High-Income Earners

Certain NFTs can be considered “collectibles,” leading to unfavorable tax treatment for high-income earners and subjecting them to a 28 percent tax rate on collectibles versus a 20 percent tax rate on regular long-term capital gains.

Nearly one year after the COIVD-19 pandemic-driven shut-downs began the shutter the economy, Democrats pushed through another $1.9 trillion stimulus package by narrow margins, with the President set to sign the bill. The legislation is one of President Biden’s first major achievements and contains numerous provisions that impact millions of Americans. Below we’ll look at what’s inside the legislation.

Stimulus Checks

$1,400 stimulus checks are the hallmark of the legislation, but not everyone is eligible. Similar to previous stimulus packages, single taxpayers making $75,000 or less are eligible for the full amount, but the payout completely phases-out once income reaches $80,000. Married couples earning up to $150,000 will receive $2,800, but phase-out once they reach $160,000. These income-based eligibility phase-outs are much more narrow than previous packages. Taxpayers also receive an additional $1,400 per qualifying dependent, which may include college students, disabled adults, and elderly parents.

Unemployment Benefit Extension

The weekly unemployment supplement of $300 is extended through September 6^th, whereas previously, the benefit was set to expire in March. Initially, House Democrats tried to increase the unemployment supplement to $400 per week, but this change didn’t make it into the final legislation.

Child Tax Credits

Previous stimulus packages increased the child tax credit from $2,000 up to $3,000 per child, including a bonus of $600 for children six years old and younger, and made the credit refundable. Making the credit refundable expanded the benefit to millions of low-income families who previously didn’t earn enough to pay enough taxes to take the full credit.

This bill extended these provisions for an additional year through 2021, with some lawmakers looking to make the changes permanent.

Money for State and Local Governments, Schools, Vaccine Distribution, and Others

Money is allocated to help fight the pandemic’s spread and impact, with $7.5 billion earmarked to fund vaccine distribution and $48 billion set aside for contact-tracing and testing efforts. Meanwhile, state and local governments have a fund of $350 billion in aid to help them cover budget shortfalls caused by the pandemic. Schools and universities received a pot of $160 billion for similar operational budget support.

Other economic assistance programs in the legislation include $22 billion for rental assistance, $39 billion for child care, $29 billion for the restaurant industry.

What Didn’t Make it Into the Bill

Initially, Democrats tried to make a $15 per hour minimum wage part of the bill; however, this didn’t make it into the final version. In order to pass the stimulus package, Democrats used a political process call reconciliation, which enabled them to skirt the 60-vote filibuster threshold in the Senate and pass it with a simple majority. However, this maneuver also limited what they could put in the bill.

Multi-employer Pension Plans

Nearly $86 billion is put into a new program, allowing the Pension Benefit Guaranty Corporation to provide assistance to beleaguered multi-employer pension plans. The aim is to ensure retirees continue to receive their pension benefits.

Conclusion and Economic Impact

The bill’s stimulus impact is expected to set the US economy off and running at the fastest growth rate in more than 40 years. The economy is expected to grow 5.95 percent compared to 4.0 percent in the fourth quarter of last year, with increased employment and rising inflation.

Despite the fresh start that a new year promises, our world hasn’t changed much since last March. We’re still living in a new normal. We’re masking up, working (and schooling) from home, and social distancing. Furthermore, scores of community events and activities have been canceled. However, there is something that’s never been canceled: it’s called hope. Here are a few things to embrace that can lift your spirits and help you navigate all the uncertainty.

Be Happy: The COVID-19 Vaccine is Here

This is incredible news. To date, there are two vaccines: Pfizer-BioNTech and Moderna. Those who receive the Pfizer-BioNTech shot will be given two injections, 21 days apart. Those who receive the Moderna shot also will be given two injections, one month (28 days) apart. Both are given in the muscle of the upper arm and can cause mild side effects. However, clinical trials for both have shown a high level of efficacy. Learn more about each one here. The vaccine will be rolled out in phases. Healthcare personnel and residents of long-term care facilities will be offered the first doses. Learn more about who will get it and when here. The fact that we even have a vaccine available might well be the very definition of hope.

Feel Refreshed: Take a News Break

Since most of us are isolated to some degree, it’s only natural to turn to our devices. Games and social media both have the potential to take your mind off of the pain in our world. However, if you tend to veer toward newsfeeds that feature nothing but bad news (which can be addicting), perhaps it’s time to take a break. According to Verywell.com, a constant stream of sensational or disaster reporting, whether you are exposed actively or passively, can elevate stress levels and trigger symptoms like anxiety and sleep troubles, robbing you of your well-being. So, unplug. Step away from your laptop. Give your phone to a family member, partner, or friend. Get outside and soak in some vitamin D. Re-claim that part of yourself that sees the glass half full.

Ditch the Guilt: Plan Your Cheat Meals

If you’ve been looking to food for some much-needed comfort over the past year, you’re not alone. Being at home just a few feet away from a fully stocked kitchen is tempting every minute! Perhaps some of you have banished any guilt about indulging, but for those who just can’t seem to shake it, choose your moments to indulge. Satisfy your cravings a few times a week or just on the weekends. The less you do this, the more you’ll enjoy it. And when you want to splurge, why not support a local restaurant by ordering takeout? You’ll feel better in no time.

Chill Out: Spend Time Doing Nothing

With everything that’s going on and all the responsibilities of living life and crossing things off our lists, stopping to do nothing might seem counter-intuitive; but often, it’s the best remedy for eliminating stress and restoring your sanity. Carving out time to sit with the feelings you’re experiencing – whether that’s irritation, anxiety, or sadness – can help dissipate them. Take some advice from Winnie the Pooh who said, “Doing nothing often leads to the very best of something.” When you give yourself permission to let go and empty your mind, you’ll be rejuvenated and ready to begin again.

Even though the happenings of 2020 were unprecedented, the truth is you do have a new year ahead. One that can be anything you want it to be. Just grab hold of something that has always been there and will never be canceled: hope.

Sources

https://www.cdc.gov/coronavirus/2019-ncov/vaccines/different-vaccines.html

https://stephanieyounger.com/blog/love-hope-kindness-and-community-have-not-been-canceled

https://www.verywellmind.com/is-watching-the-news-bad-for-mental-health-4802320#:~:text=A%20constant%20stream%20of%20sensational,like%20anxiety%20and%20trouble%20sleeping.

What is an SSL Certificate?

An SSL (Secure Sockets Layer) certificate used is to encrypt traffic between systems, such as client and server. This is done to protect data that might include confidential information, Social Security numbers, and personal information.

SSL involves the use of a pair of the public (available to anyone) and private (exclusive to destination server) keys to handle the encryption and decryption process. 

You might have come across the term TLS (Transport Layer Security) – a protocol that is an improved version of the SSL. The two terms are used interchangeably, but this article will use SSL, as it’s the more popular term. 

Why Is SSL Important 

Threats to data security and privacy keep increasing as more functions move online. If you own a business website, it’s no longer optional to have an SSL certificate. The main reason for this is to protect users from the man in the middle attacks. And it comes with SEO benefits, too. Search engines such as Google check site security as one of the essential factors in SEO ranking. Some web browsers like Chrome also alert users if a site is not secure – and this could keep some people away from your site. 

Other benefits of an SSL certificate are that it serves as a proof of identity (authentication); it is an assurance of information privacy, and it also assures users of information integrity. This is especially crucial if your web application deals with financial or electronic commerce transactions.

SSL Best Practice 

Although SSL is secure, attackers take advantage of installation and configuration loopholes to steal data. Because of such vulnerabilities, it’s not enough to install the SSL certificate. 

Below are basic SSL best practices that will help ensure the security of data in transit.

Recently, the IRS Commissioner testified before the Senate Finance Committee, sending the message that the IRS is committed to catching intentional tax evaders. There was no ambiguity in the message of his testimony to Congress; he noted that under his watch, the IRS will aggressively pursue those purposely evading their tax obligations with civil and criminal enforcement. The commissioner made sure to mention that those who were not defrauding the system intentionally had nothing to worry about; they are not the target of stepped-up enforcement.

The IRS will be targeting five major enforcement initiatives:

1. Technology – The IRS will put a new focus on their use of technology as an enforcement tool; specifically, advanced data and analytical strategies. With this data-driven approach, the IRS believes it will be able to catch tax fraud impossible to spot even just a few years ago.
2. Offshore Tax Evasion – Offshore tax reporting enforcement is a long-standing priority of the IRS, but the current commissioner reiterated the focus on this area, so don’t expect to see any easing here.
3. Tax Shelters – The IRS believes many taxpayers are abusing two tax shelters, syndicated conservation easements, and micro-captive insurance arrangements. They plan on stepped-up enforcement on both those who arrange these shelters and taxpayers who participate in them.
4. Cryptocurrency – The IRS believes there is mass non-compliance in the world of cryptocurrencies through either underreporting or nonreporting of taxable transactions.
5. Wealthy Taxpayers – Enforcement actions take time and are resource-intensive, so it should be no surprise that the IRS is going after non-compliant taxpayers with the biggest ROI. The IRS is considering anyone with an income level of over $100,000 to be high-income. 

Expect to see increased tax enforcement efforts ahead, with a focus on those who are intentionally evading the system. If you haven’t purposely defrauded the system, you have little to worry about.

As part of a comprehensive strategy to cope with COVID-19 and reduce the risk of spreading it, developing a sanitation plan is a necessary tool that businesses can implement during the reopening process.

The Centers for Disease Control and Prevention recommends a thorough approach for cleaning and disinfecting. The first thing to do to reduce the amount of COVID-19 virus on exterior surfaces and items handled by individuals is to wash them with soap and water.

When it comes to items handled by many individuals, using appropriate disinfectants approved by the Environmental Protect Agency that contains active ingredients such as ethanol, hydrogen peroxide, sodium hypochlorite, and sodium chlorite is another way to lower the chances of people being exposed to the virus.

The CDC lists a few examples of items that exist in offices and/or retail outlets that need to be disinfected – not just cleaned. Examples include touch screens, phones, handles, light switches, tables, doorknobs, toilets, shopping carts, and anything that’s likely to be touched by multiple people throughout the day. Keeping doors open can reduce the need for employees or customers to constantly touch the door.

When it comes to soft or spongy items, such as rugs or seating, the CDC recommends to first remove any unnecessary items. For things that must remain such as carpeting, they should be washed according to the manufacturer’s recommendations, using hot water and letting them dry fully.

Another way to increase workplace and retail hygiene is to improve air quality. Other recommendations include running air filtration and exchanges 24/7. It also includes maintaining fresh filters and ensuring they’re installed properly and increasing the level of air filtration to maintain clean and healthy airflow.

Encouraging employees to wash their hands for a minimum of 20 seconds or using a hand sanitizer with a minimum of 60 percent alcohol is also recommended. Reminding employees verbally or through written means (including signage posted throughout the building) to wash their hands throughout the day, including before and after work, when they use the restroom, and after touching their workspace or work materials is also recommended.   

While every office and retail space is different, taking steps to reduce the chance of COVID-19 infection is a great way to stay safe and create goodwill with employees and customers.

Sources

https://www.cdc.gov/coronavirus/2019-ncov/community/guidance-business-response.html

https://www.cdc.gov/coronavirus/2019-ncov/community/pdf/Reopening_America_Guidance.pdf

https://www.epa.gov/pesticide-registration/list-n-disinfectants-use-against-sars-cov-2-covid-19

https://www.cdc.gov/coronavirus/2019-ncov/community/clean-disinfect/index.html