Don’t wait until the last minute
If you requested an extension to file your tax return after the April 15, 2025, due date, the extended deadline is Wednesday, Oct. 15. If you have the information you need, you may want to file now. There’s no advantage to waiting, and last-minute filing may lead to worry.
If you’re concerned about paying any tax owed, the IRS offers short- and long-interest until the balance is paid. As soon as possible, gather your 2024 tax year records and contact us for a tax preparation appointment or to ask questions you may have.
Payments sent abroad may be taxable
Do you send money to someone in another country? If so, because of a lesser-known provision of the One Big Beautiful Bill Act, the money you send may be subject to a tax, beginning in 2026. The 1% excise tax applies to transfers of cash or cash equivalents from a sender in the United States to a foreign recipient, via a remittance transfer provider. The remittance transfer provider will collect the tax as part of the transfer fee and then remit it quarterly to the U.S. Treasury. Transfers made through a financial institution (such as a bank) or with a debit or credit card are excluded from the tax.
How to document noncash donations
If your summer chore list includes cleaning out the garage and closets, you might have items to donate to a local charity. That may lead to tax savings, but be aware that you can only claim a deduction for noncash donations if you itemize deductions on your tax return. You’ll need to obtain proper documentation from the qualified charities. Noncash donations of less than $250 must be supported by a receipt that shows your name, address, date of donation and a detailed description of the items. For donations valued at $250 to $500, you must also obtain a “contemporaneous written acknowledgement” from the charity. Contact us, or visit the IRS here.
Paper checks from the federal government will soon vanish
If you still receive federal payments by paper check, you may need to take certain steps soon. Starting Sept. 30, 2025, the federal government will stop issuing paper checks for payments such as tax refunds, Social Security benefits and more. Direct deposit will become the only option unless the deadline is extended. The goal is to reduce fraud, delays and costs. An executive order by President Trump stated: “Historically, Department of the Treasury checks are 16 times more likely to be reported lost or stolen, returned undeliverable, or altered than an electronic funds transfer.” Taxpayers without bank or credit union accounts should open one now. Contact us with questions.
Tax obligations when you get divorced or separated
If a couple gets separated or divorced, it affects tax obligations. The IRS considers couples married for tax purposes until a final decree is issued. After separating or divorcing, update your Form W-4 with your employer and check withholding using the IRS estimator. Certain alimony payments may be deductible by the payer and taxable to the recipient unless the payments are for child support, property settlements or voluntary payments. Only one parent can claim a child as a dependent. Property transfers due to divorce typically aren’t taxed but may require a gift tax return. For more details from the IRS click here.