Deduct Everything!
portes grátis
Deduct Everything!
Hundreds of Tax Tips, Legal Write-Offs, Credits, and Loopholes
Byrnes, Tracy; Rosenberg, Eva
Humanix Books
04/2026
326
Mole
Inglês
9781630063498
15 a 20 dias
Descrição não disponível.
Table of Contents to DEDUCT EVERYTHING!: Hundreds of Tax Tips, Legal Write-Offs, Credits, and Loopholes by Tracy Byrnes, MBA, CDFAAuthor's Note
Introduction
CHAPTER ONE The Great Reset: Navigating the OBBBA Tax Landscape . . . . . .. . . 1
TIP 1
Standard Deduction: Higher and Permanent (IRC 63(c)) . . 2
TIP 2
SALT Deduction: A New Cap, a New Clock (IRC 164) . . . 4
TIP 3
Personal Tax Rates: Still Lower, Still Favoring High Earners (IRC 1) . . . . . . . 4
TIP 4
Advisor Fees Aren't Deductible-And Charitable Deductions Now Start After a "Floor" . . . . . . . 5
TIP 5
Child Tax Credit: More Families Qualify, More Refundable Cash (IRC 24) . . . . . . . . 5
TIP 6
Estate and Gift Tax: Stability Instead of Panic (IRC 2010(c); Treasury Regulation 20.2010-1(c)) . 6
TIP 7
Business Owners: Cleaner Rules, Bigger QSBS Wins (IRC 199A and 1202) . . . . . . . 8
TIP 8
Above-the-Line Deductions (2026-2028 Only) . . . . . . . . . 10
TIP 9
The Mandatory Roth Catch-Up Rule: A Short-Term Hit for a Long-Term Win (IRC 219, 401) . . . .. . . . 11
TIP 10
IRS Digital Documentation Rules (IRC 6001, 6201) . . . . 12
CHAPTER TWO From Cribs to Canes: How the OBBBA Unlocks Tax Breaks for Kids, Workers, and Retirees 13
TIP 11
Track Your Overtime Carefully-Only the Premium Is Deductible . . . . . . . 13
TIP 12
You May Deduct Up to $12,500 (Single) or $25,000 (Married Filing Jointly) . . . . . . . . 14
TIP 13
Your MAGI Affects Your Deduction . . . .. . . . . 14
TIP 14
Keep Pay Stubs and Overtime Records Until Reporting Rules Are Final . . . . 15
TIP 15
Remember: You Still Owe FICA Taxes on All Overtime . . . 15
TIP 16
Prepare to Track Only the Overtime Premium (the "Half") . 15
TIP 17
Understand the Two-Year W-2 Reporting Transition . . . . . 16
TIP 18
Do Not Reclassify Compensation: Beware of Anti-Abuse Rules . . . . . . . . . . 17
TIP 19
Train HR and Payroll Teams Early . . . . . . . . . . 17
TIP 20
Understand That States May Not Follow Federal Rules . . . 17
TIP 21
Supercharged Senior Deduction (the New $6,000 Bonus) . 18
TIP 22
More Social Security Benefits Stay Tax-Free (the End of a 40-Year Problem) . . . . . . . . . 19
TIP 23
Permanent 7.5% Medical Expense Threshold . . . . . . . . . . . 20
TIP 24
The New RMD Standard . . . . . . . . . . . . . . . . . . . . . . . . . . 21
TIP 25
Bigger Catch-Up Contributions for Ages 60-68 . . . . . . . . 22
TIP 26
Expanded Saver's Credit for Seniors Who "Un-Retire" . . . . 23
TIP 27
Expanded Qualified Charitable Distributions (QCDs) (IRC ? 408(d)(8)) . . . . . . . 25
TIP 28
Credits for Caregiving and Aging-in-Place Financial Support . . . . . . . . . . . 26
TIP 29
Higher Deductions for Long-Term Care Insurance Premiums . . . . . . . . . . 28
TIP 30
Maximize Annual Contributions ($5,000 Limit) . . . . . . . . 32
TIP 31
Look for a Potential Employer Match (Up to $2,500) . . . . 33
TIP 32
Prepare for Taxable Withdrawals After Age 18 . . . . . . . . . . 33
TIP 33
Expect Low-Cost, Index-Based Investments Only-No Stock Picking, No Crypto . . . . . . 33
TIP 34
Don't Miss the Dell Foundation's $250 Seed Money (for Older Kids) . . . . . . . . 34
CHAPTER THREE Gratitude with a Garnish: How to Keep More of Your Tips Under the OBBBA . . . . . . . 39
Tip 35
Keep a Daily Tip Record . . . . . . . . . . . . . . . . . . . . . . . . . . 40
TIP 36
Report Cash Tips to Your Employer Monthly . . . . . . . . . . 40
TIP 37
New: Claim the $25,000 Tip Deduction (2025-2028) . . . 41
TIP 38
Tips Are Still Subject to FICA (Always Have Been) . . . . . . 43
TIP 39
For Tip Pools, Only Report Your Net Tips . . . . . . . . . . . . . 43
TIP 40
Understand "Uncollected FICA" on Your W-2 . . . . . . . . . 44
TIP 41
Report All Tips on Your 1040 (Even Noncash) . . . . . . . . . . 44
TIP 42
Pay Self-Employment Tax on Unreported Tips . . . . . . . . . . 45
TIP 43
Verify Allocated Tips on Your W-2 . . . . . . . . 45
TIP 44
Self-Employed Workers Can Claim the $25,000 Tip Deduction . . . . . . .. . 46
TIP 45
Electronic Tips (Venmo, Zelle, CashApp) Are Fully Taxable . . . . . . . . 46
TIP 46
IRS Tip Monitoring Is Increasing Under OBBBA . . . . . . . 47
TIP 47
Service Charges Are Not Tips . . . . . . . . . . 47
TIP 48
States May Not Follow the Federal Deduction . . . . . . . . . . 48
TIP 49
Keep Separate Logs if You Work Multiple Jobs . . . . . . . . . . 48
CHAPTER FOUR The Family Fortune: 20 Ways to Build a Tax-Smart Legacy for Your Inner Circle . . 51
TIP 50
Child Tax Credit . . . . . . . . . 52
TIP 51
Child and Dependent Care (CDC) Credit . . . . . . . 52
TIP 52
Earned Income Tax Credit (EITC) . . . . . . . . 52
TIP 53
Adoption Credit . . . . . . . . 53
TIP 54
The American Opportunity Tax Credit (AOTC) . . . . . . . 53
TIP 55
The Lifetime Learning Credit (LLC) . . . . . . . 53
TIP 56
Deduct Student Loan Interest . . . . . . . . 54
TIP 57
Deduct Medical Expenses for Dependents . . . . . . . 54
TIP 58
Deduct Charitable Driving Mileage . . . . . . . . . 55
TIP 59
Use That Dependent Care Account with Your Flexible Spending Account (FSA) . . . . . . . . . . 55
TIP 60
Beef Up Your Health Savings Account (HSA)-It's a Triple Tax Advantage Tool . . . . . . . . . . . 55
TIP 61
Take Advantage of the Newborn Savings Account (One Big Beautiful Bill Act Update) . . . . .. . 56
Tip 62
Save for College (and Way More) with a 529 Plan . . . . . . . 56
TIP 63
Use 529 Funds for Student Loan Repayment . . . . . . . 56
TIP 64
Put Your Kids on the Payroll . . . . . . . . . 57
TIP 65
Fund a Roth IRA for Your Child-The Ultimate Head Start . . . . . . . . . . 57
TIP 66
Use the Annual Gift Tax Exclusion . . . . . . . . . . 57
TIP 67
Understand the "Kiddie Tax" Rule . . . . . . . . . . . . 58
TIP 68
File as Head of Household (HOH) if You Qualify . . . . . . . 58
TIP 69
Check for Qualifying Widow(er) Status . . . . . . . . . 58
CHAPTER FIVE The Shelter Strategy: Maximizing Your Home as a Tax Shield Under the OBBBA . 61
TIP 70
Exploit the Expanded SALT Deduction (OBBBA Update) 62
TIP 71
Deduct Mortgage Interest . . . .. . . . . 62
TIP 72
Don't Forget to Use the $1 Million Limit on Grandfathered Loans . . . . . . . . . . 62
TIP 73
Use HELOC Interest for Home Improvement Only . . . . . 63
TIP 74
Deduct Property Taxes Paid . . . . . . . . . . . 63
TIP 75
Deduct Private Mortgage Insurance (PMI) Premiums Again (Starting 2026) . . . . . . . . . 63
TIP 76
Deduct Mortgage Points on Purchase . . . . . . . . . . . . 64
TIP 77
Deduct Property Taxes Paid at Closing . . . . . .. . . . . . 64
TIP 78
Amortize Refinance Points over the Loan Life . . . . . . . . . . 64
TIP 79
Fully Deduct Prior Refi Points on Sale/Payoff . . . . . . . . . . 65
TIP 80
Add Most Closing Costs to Your Home's Basis . . . . . . . . . . 65
TIP 81
Deduct Interest Paid Before Closing . . . . . . . . 65
TIP 82
Deduct EV Charger Installation Costs (Alternative Fuel Refueling Property Credit) . . . . . . . 65
TIP 83
Maximize the Home Sale Exclusion to Minimize Your Capital Gains at Sale . . . . . . . . . 66
TIP 84
Claim a Partial Home Sale Exclusion . . . . . . . . . . 67
TIP 85
Keep Receipts to Increase Your Home's "Basis" . . . . . . . . . . 67
TIP 86
Deduct Medically Necessary Home Improvements (Itemized Deduction) . . . . . . . . . . 68
TIP 87
Convert a Rental to a Primary Residence (for Exclusion) . . 68
CHAPTER SIX The Rental Playbook: Tax Hacks to Turn Your Property into a Wealth-Building Machine . . 71
TIP 88
Use the 14-Day Rental Loophole (IRC ? 280A) . . . . . . . . . 72
TIP 89
Deduct All "Ordinary and Necessary" Expenses (IRC ? 162) . . . . . . . . . . 72
TIP 90
Use Schedule C for Active Airbnb Hosting (IRC ? 1402) . 73
TIP 91
Use Schedule E for Long-Term Rentals (IRC ? 469) . . . . . 73
TIP 92
Separate Taxes for Business Use (IRC ? 164) . . . . . . . . . . . 74
TIP 93
Build Wealth Using Depreciation: The "Phantom Deduction" (IRC ? 167) . . . .. . . . . 74
TIP 94
Deduct Costs of Attracting Guests (IRC ? 162) . . . . . . . . . 75
TIP 95
Deduct Travel Expenses for Rental Business (IRC ? 162) . . 75
TIP 96
Move Personal Home Deductions to Your Rental (IRC ? 280A) . . . . . . . . 76
TIP 97
Account for Escrow Taxes on HUD-1 (IRC ? 164) . . . . . . 77
TIP 98
Issue Form 1099-MISC for Service Providers (IRC ? 6041) . . . . . . . . . 77
TIP 99
But-You Can Avoid Issuing 1099-MISC with Credit Card Payments (IRC ? 6050W) . . . . . . . . 78
TIP 100
Deduct Interest on Time-Shares (IRC ? 163) . . . . . . . . . . . 79
TIP 101
Depreciate Qualified Improvements (IRC ? 168) . . . . . . . . 79
TIP 102
Deduct Interest to Private Lenders (IRC ? 6050H) . . . . . . 80
TIP 103
Prove Your Profit Motive (IRC ? 183) . . . . . . . . . . . . . . . . 80
TIP 104
Understand Local Hotel/Lodging Taxes (State/Local Law) . . 81
TIP 105
Deposit Refinance Funds into a Business Account (IRC ? 163) . . . . . . . 81
TIP 106
Report Unpaid Interest from Loans (IRC ? 446) . . . . . . . . 82
TIP 107
Understand Passive Activity Loss Limitations (IRC ? 469) . . 82
CHAPTER SEVEN The Strategic Giver: How to Donate Like a Philanthropist and Save Like a Pro . . . 85
TIP 108
Itemize to Deduct (Still the Gatekeeper) . . . . . . . 85
TIP 109
Use the "Bunching" Strategy . . . . . . 86
TIP 110
Verify the Charity's Status . . . . . . . . . 86
TIP 111
Keep Proper Documentation . . . . . . 86
TIP 112
Cash Donations: The Simplest and Cleanest Charitable Deduction . . . . . . 87
TIP 113
Clothing and Household Goods: Condition and Valuation Matter . . . . . . . . . 88
TIP 114
Vehicle Donations: Special Rules, Lower Expectations . . . . 89
TIP 115
Deduct Only the Net Gift . . . . . . . 90
TIP 116
Don't Donate "Losers" . . . . . . . . 90
TIP 117
Donate "Winners" (Appreciated Stock) . . . . . . . . . . 90
TIP 118
Understand the AGI Deduction Limits . . . . . . 91
TIP 119
Carry Forward Excess Gifts . . . . . . . . 91
TIP 120
Use a Qualified Charitable Distribution (QCD) . . . . . . 91
TIP 121
The Power of Donor-Advised Funds (DAFs) . . . . . 92
TIP 122
Charitable Remainder Trusts (CRTs) . . . .. . . . . . 94
TIP 123
CRAT Vs. CRUT: Two Ways a CRT Can Pay You . . . . . . . 95
CHAPTER EIGHT The Hustle Shield: Self-Employed Tax Strategies to Protect Your Profits . . . . 99
TIP 124
Deduct Business Meals at 50% . . . . . . . . . . 100
TIP 125
Separate Meal Costs from Entertainment . . . . . . . . . . 100
TIP 126
Deduct Meals for Transportation Workers at 80% . . . . . . 100
TIP 127
Deduct Business Mileage (Standard Rate) . . . . . . . . . 101
TIP 128
Deduct Parking and Tolls Separately . . . . . . . 102
TIP 129
Deduct Business Taxes Without a Cap . . . . . . . 102
TIP 130
Deduct All Ordinary and Necessary Expenses . . . . . . . . . 102
TIP 131
Deduct Business Travel Expenses . . . . . . . . . . 103
TIP 132
Deduct Employee Safety Costs . . . . . . . . . . . . 103
TIP 133
Deduct a Portion of the Self-Employment Tax . . . . . . . . . 103
TIP 134
Use the Optional Method for Social Security Credits . . . . 104
TIP 135
Claim the 20% Qualified Business Income (QBI) Deduction . . . . . . . . . . 104
TIP 136
Understand the MAGI Limits for the QBI Deduction . . . 105
TIP 137
Consider Becoming a C Corporation (C Corp) . . . . . . . . 105
TIP 138
Pay Yourself a Reasonable Salary (S Corporation Strategy) 106
TIP 139
Use the Cash Method of Accounting . . . . . . . . . 106
Tip 140
Maximize Section 179 Expensing . . . . . . . . . 107
TIP 141
Include Used Property for Bonus Depreciation . . . . . . . . 107
TIP 142
Consider an Office-in-Home Deduction . . . . . . . . . . . 108
TIP 143
Take Advantage of the De Minimis Safe Harbor (DMSH) Rule . . . . . . . . . . 108
TIP 144
You Can't Have Access to an Employer Plan . . . . . . . . . . 110
TIP 145
Your Deduction Is Limited to Your Earned Income . . . . . 110
CHAPTER NINE The Investor's Edge: Mastering Capital Gains, Crypto, and the Stealth "NIIT" Tax . . . . 111
TIP 146
Try to Hold Investments Long Term . . . . . . . . . . 112
TIP 147
Practice Tax-Loss Harvesting . . . . . . . . . . 113
Tip 148
Manage Your Tax Bracket for Capital Gains . . . . . . 114
TIP 149
Donate Appreciated Assets to Charity . . . . . . . . . . . 114
TIP 150
Follow the Wash Sale Rule (IRC ?1091) . . . . . . . . . . . . . 115
TIP 151
Use the Crypto Wash Sale Loophole-While It Lasts . . . . 116
TIP 152
Defer Tax on Mining and Staking . . . . . . . . . . . . 116
TIP 153
Take Advantage of the De Minimis Exemption-If It Passes . . . . . . . . . 117
TIP 154
Try to Hold Crypto for over a Year . . . . . . . . 117
CHAPTER TEN Retirement and Wealth: Mandatory Roth and Long-Term Savings . . . . . . . . . . 119
TIP 155
Maximize Contributions to Retirement Plans . . . . . . . . . 119
TIP 156
Contribute to a Roth IRA-If You Can . . . . . . . . . 121
TIP 157
Take Advantage of the Backdoor Roth . . . . . . . . 122
TIP 158
Prioritize Roth Accounts for the Young'uns . . . . . . . . 122
TIP 159
Avoid IRA Early Withdrawal Penalties . . . . . . . . . 123
TIP 160
Repay 401(k) Loans When You Leave a Job . . . . . . . . . 123
TIP 161
Consider a Roth Conversion in Low-Income Years . . . . . 123
TIP 162
Use IRA Funds for Charitable Giving (Qualified Charitable Distributions) . . . . . . . . . . . 124
TIP 163
Take Advantage of Higher Estate and Gift Tax Exclusions 124
TIP 164
Lower Your MAGI with Smart Contributions . . . . . . . . . 126
TIP 165
Use Roth Accounts Strategically . . . . . . . . . . . 126
TIP 166
Use Tax-Loss Harvesting . . . . . . . . . . . 127
TIP 167
Consider Municipal Bonds . . . . . . . . . 127
TIP 168
Don't Deduct Investment Fees or Tax Prep Costs . . . . . . . 129
TIP 169
Avoid Paying IRA Fees Out of Pocket . . . . . . . . . . 129
TIP 170
Same with Those Management Fees for Private Funds . . . 130
TIP 171
Don't Miss Rollover Deadlines . . . . . . . . . . 130
TIP 172
And Finally, a Roth Conversion Reminder . . . . . . . . . . . . 130
CHAPTER ELEVEN Triple Threat: Turning Your Health Savings Account into a Retirement Powerhouse .131
Tip 173
The Power of the Triple Tax Advantage of Health Savings Accounts . . . . . . . . . . 131
CHAPTER TWELVE The Fast Lane Mastering the Road Rules for Maximum Auto Deductions . . 135
TIP 174
Start with Total Miles-No Fake Reverse-Odometer Tricks . . 136
TIP 175
Log Business Trips Like You're Planning the Perfect Skip Day . . . . . . . 136
TIP 176
Standard Mileage Vs. Actual Expenses-You Get to Choose . . . . . . . . . 136
TIP 177
Checklist to Pick a Method . . . . . . . . 137
TIP 178
Luxury Car Depreciation Has Limits-Apologies to the Ferrari Owners . . . . . . . 138
TIP 179
Want a Big Deduction? Think SUV, Not Ferrari . . . . . . . 139
TIP 180
A Home Office Turns Every Trip into a Business Trip . . . 139
TIP 181
Rideshare Drivers Are Businesses-Even if It's a Side Gig . . 140
TIP 182
Yes, Even Cash Tips Count . . . . . . 140
TIP 183
Advertising Wrap? You've Turned Your Car into a Business Asset . . . . . . . . . 141
TIP 184
Parking and Tolls-The Little Deductions That Add Up . 141
TIP 185
Charitable Mileage-Doing Good Still Gets 14 Cents per Mile . . . . . . . . . 142
TIP 186
Charitable Parking and Tolls-Also Deductible . . . . . . . . 142
TIP 187
Medical Mileage. Sometimes Necessary, Sometimes Deductible . . . . . . 143
TIP 188
Moving Expenses? Nope. . . . . . . . . 143
TIP 189
Standard Mileage Includes Depreciation-Don't Forget This . . . . . . . . 143
TIP 190
Personal Property Taxes May Be Deductible-If They Qualify . . . . . . . 144
TIP 191
Buying Vs. Leasing? Run the Numbers . . . . . . . . . 144
TIP 192
Employer Reimbursements Mean No Double Dipping . . 144
CHAPTER THIRTEEN Wait ... You Tried to Deduct What?: Debunking the Wildest Tax Myths in the Book 147
TIP 193
"My Dog Is My Security System-So He's a Business Expense." . . . . . . . . 148
TIP 194
"I Can Deduct My Wedding Because I Networked There." . . . . . . . . . 148
TIP 195
"My Vacation Was a Business Trip Because I Talked About Work." . . . . . . . . . . . 149
TIP 196
"I Bought Clothes for Work, So Therefore I Can Write Them Off." . . . . . . . . . 149
TIP 197
"I Can Write Off My Kids Because They Help Me on TikTok." . . . . . . . . . 149
TIP 198
"My Boat Is for Client Entertainment." . . . . . . . . . . . 150
TIP 199
"I Can Deduct My Divorce Attorney. It's My Future Financial Planning!" . . . . . . . 150
TIP 200
"I Can Write Off My House Because I Host Friends Who Talk About Business." . . . . . . . . 151
TIP 201
"My Gym Membership Is a Health Deduction." . . . . . . . 151
TIP 202
"I Can Write Off My Dating App Subscriptions. They're Client Research." . . . . . . . . 152
TIP 203
"My Tattoo Is Advertising. It Has My Company Logo." . . 152
TIP 204
"My Pool Is a Medical Expense Because It Reduces My Stress." . . . . . . . . . 152
TIP 205
"I Lost Money on Crypto, so I Don't Need to Report It." . . . . . . . 153
TIP 206
"The IRS Doesn't Care About Side Cash." . . . . . . . . 153
TIP 207
"My Vacation Rental Losses Don't Matter Because It's Just a Hobby." . . . . . . . 154
TIP 208
"I Don't Need Receipts. The IRS Trusts Me." . . . . . . . . . . 154
TIP 209
"If I Owe Less Than $1,000, They Won't Care." . . . . . . . . 154
TIP 210
"I Don't Have to File if I Didn't Make Much Money." . . . 155
TIP 211
"If I Get Audited, I'll Just Say My Accountant Did It." . . 155
TIP 212
"The IRS Won't Notice. I'm Too Small." . . . . . . . . . . . . . 156
CHAPTER FOURTEEN The Great Extension: Mastering April Deadline & Uncle Sam's Good Side ...157
TIP 213
File Electronically. It's Faster, Safer, and Smarter . . . . . . . . 158
TIP 214
Uncle Sam Needs to Hear from You by April 15 . . . . . . . 158
TIP 215
Even if You Can't Pay Your Tax Bill-File Anyway! . . . . . 159
TIP 216
Now, Even if You Extend, You Still Have to Pay What You Owe . . . . . . . 159
TIP 217
If You Owe, Make Your Payment Online . . . . . . . . . 160
TIP 218
Set Up an IRS Payment Plan if You Can't Pay in Full . . . . 160
TIP 219
Short-Term Payment Extensions-The 180-Day Grace Period . . . . . . 161
TIP 220
Paying with a Credit Card: Good Idea or Bad One? . . . . . 161
TIP 221
Track Your Refund (or Payment) . . . . . . . . . 162
TIP 222
All Refunds Aren't Instant-Even When You E-File . . . . . 162
TIP 223
How to Fix a Mistake: Form 1040-X . . . . . . . . 162
TIP 224
Don't Forget to Amend Your State Return Too . . . . . . . . . 163
TIP 225
The IRS Does Forgive Penalties-Sometimes . . . . . . . . . . 163
TIP 226
How IRS Interest Really Works-And Why the Penalty Adds Up So Fast . . . . . . . . 163
TIP 227
Ignoring IRS Letters Doesn't Make Them Go Away . . . . . 164
TIP 228
Create an IRS Online Account-It's Your Digital Tax Dashboard . . . . . . . . . 164
TIP 229
Get an IRS Identity Protection PIN (IP PIN)-Especially if You've Ever Been Hacked . . . . . . 165
TIP 230
Know What "Injured Spouse" Means . . . . . . . . 166
TIP 231
Same with "Innocent Spouse" . . . . . . . 167
TIP 232
And My Quick Public Service Announcement . . . . . . . . 168
TIP 233
Keep Your Tax Records-But Not Forever . . . . . . . 169
TIP 234
Celebrate Responsibly-And Then Make a Note to Start Earlier Next Year . . . . . . . . 169
CHAPTER FIFTEEN The Goodfellas Guide to the IRS: Surviving an Audit Without Losing Your Cool . . . . . 171
TIP 235
Reporting Round Numbers (aka "The $500 Rule") . . . . . 172
TIP 236
Large Deductions Compared with Your Income . . . . . . . . 172
TIP 237
Unreported 1099 Income . . . . . . . . 172
TIP 238
Claiming 100% Business Use of a Vehicle . . . . . . . 173
TIP 239
Excessive Meal and Entertainment Deductions . . . . . . 173
TIP 240
Home Office Abuse . . . . . . . . . 174
TIP 241
Cash-Heavy Businesses . . . . . . . . . . 174
TIP 242
Claiming the Earned Income Tax Credit (EITC) Incorrectly . . . . . . . . 174
TIP 243
Amending Returns Every Year . . . . . . . . . 175
TIP 244
"Hobby" Businesses with Years of Losses . . . . . . . . 175
TIP 245
Don't Panic-An Audit Isn't an Indictment . . . . . . . . . . . 176
TIP 246
Know What Kind of Audit You're Dealing With . . . . . . . 177
TIP 247
Respond Before the Deadline-Or Fuggedaboutit . . . . . . 177
TIP 248
Bring Receipts-Literally . . . . . . . . . . . 177
TIP 249
Get a Professional-Your Consigliere . . . . . . . . . . . 178
TIP 250
Don't Volunteer Extra Information . . . . . . . . . . . . 179
TIP 251
Get Everything in Writing-No Backroom Deals . . . . . . 179
TIP 252
You Can Appeal. Don't Let One Agent Be Judge and Jury . . . . . . . . 179
TIP 253
Fix Whatever Triggered the Audit . . . . . . . . 180
TIP 254
Celebrate the Win-Even if You Owe Money . . . . . . . . . 180
Conclusion . . . . . . . . . . 181
APPENDIX A Recordkeeping That Actually Saves You Money . . . . . . 185
APPENDIX B DIY Versus Hiring a Tax Pro . . . . . . . . 189
APPENDIX C I Need a Tax Pro . . . . . . . . . 193
APPENDIX D Think About State Taxes Before You Move . . . . . . 197
Acknowledgments . . . . . . . . . . . 203
Index . . . . . . . . 205
About the Author . . . . . . . 217
Introduction
CHAPTER ONE The Great Reset: Navigating the OBBBA Tax Landscape . . . . . .. . . 1
TIP 1
Standard Deduction: Higher and Permanent (IRC 63(c)) . . 2
TIP 2
SALT Deduction: A New Cap, a New Clock (IRC 164) . . . 4
TIP 3
Personal Tax Rates: Still Lower, Still Favoring High Earners (IRC 1) . . . . . . . 4
TIP 4
Advisor Fees Aren't Deductible-And Charitable Deductions Now Start After a "Floor" . . . . . . . 5
TIP 5
Child Tax Credit: More Families Qualify, More Refundable Cash (IRC 24) . . . . . . . . 5
TIP 6
Estate and Gift Tax: Stability Instead of Panic (IRC 2010(c); Treasury Regulation 20.2010-1(c)) . 6
TIP 7
Business Owners: Cleaner Rules, Bigger QSBS Wins (IRC 199A and 1202) . . . . . . . 8
TIP 8
Above-the-Line Deductions (2026-2028 Only) . . . . . . . . . 10
TIP 9
The Mandatory Roth Catch-Up Rule: A Short-Term Hit for a Long-Term Win (IRC 219, 401) . . . .. . . . 11
TIP 10
IRS Digital Documentation Rules (IRC 6001, 6201) . . . . 12
CHAPTER TWO From Cribs to Canes: How the OBBBA Unlocks Tax Breaks for Kids, Workers, and Retirees 13
TIP 11
Track Your Overtime Carefully-Only the Premium Is Deductible . . . . . . . 13
TIP 12
You May Deduct Up to $12,500 (Single) or $25,000 (Married Filing Jointly) . . . . . . . . 14
TIP 13
Your MAGI Affects Your Deduction . . . .. . . . . 14
TIP 14
Keep Pay Stubs and Overtime Records Until Reporting Rules Are Final . . . . 15
TIP 15
Remember: You Still Owe FICA Taxes on All Overtime . . . 15
TIP 16
Prepare to Track Only the Overtime Premium (the "Half") . 15
TIP 17
Understand the Two-Year W-2 Reporting Transition . . . . . 16
TIP 18
Do Not Reclassify Compensation: Beware of Anti-Abuse Rules . . . . . . . . . . 17
TIP 19
Train HR and Payroll Teams Early . . . . . . . . . . 17
TIP 20
Understand That States May Not Follow Federal Rules . . . 17
TIP 21
Supercharged Senior Deduction (the New $6,000 Bonus) . 18
TIP 22
More Social Security Benefits Stay Tax-Free (the End of a 40-Year Problem) . . . . . . . . . 19
TIP 23
Permanent 7.5% Medical Expense Threshold . . . . . . . . . . . 20
TIP 24
The New RMD Standard . . . . . . . . . . . . . . . . . . . . . . . . . . 21
TIP 25
Bigger Catch-Up Contributions for Ages 60-68 . . . . . . . . 22
TIP 26
Expanded Saver's Credit for Seniors Who "Un-Retire" . . . . 23
TIP 27
Expanded Qualified Charitable Distributions (QCDs) (IRC ? 408(d)(8)) . . . . . . . 25
TIP 28
Credits for Caregiving and Aging-in-Place Financial Support . . . . . . . . . . . 26
TIP 29
Higher Deductions for Long-Term Care Insurance Premiums . . . . . . . . . . 28
TIP 30
Maximize Annual Contributions ($5,000 Limit) . . . . . . . . 32
TIP 31
Look for a Potential Employer Match (Up to $2,500) . . . . 33
TIP 32
Prepare for Taxable Withdrawals After Age 18 . . . . . . . . . . 33
TIP 33
Expect Low-Cost, Index-Based Investments Only-No Stock Picking, No Crypto . . . . . . 33
TIP 34
Don't Miss the Dell Foundation's $250 Seed Money (for Older Kids) . . . . . . . . 34
CHAPTER THREE Gratitude with a Garnish: How to Keep More of Your Tips Under the OBBBA . . . . . . . 39
Tip 35
Keep a Daily Tip Record . . . . . . . . . . . . . . . . . . . . . . . . . . 40
TIP 36
Report Cash Tips to Your Employer Monthly . . . . . . . . . . 40
TIP 37
New: Claim the $25,000 Tip Deduction (2025-2028) . . . 41
TIP 38
Tips Are Still Subject to FICA (Always Have Been) . . . . . . 43
TIP 39
For Tip Pools, Only Report Your Net Tips . . . . . . . . . . . . . 43
TIP 40
Understand "Uncollected FICA" on Your W-2 . . . . . . . . . 44
TIP 41
Report All Tips on Your 1040 (Even Noncash) . . . . . . . . . . 44
TIP 42
Pay Self-Employment Tax on Unreported Tips . . . . . . . . . . 45
TIP 43
Verify Allocated Tips on Your W-2 . . . . . . . . 45
TIP 44
Self-Employed Workers Can Claim the $25,000 Tip Deduction . . . . . . .. . 46
TIP 45
Electronic Tips (Venmo, Zelle, CashApp) Are Fully Taxable . . . . . . . . 46
TIP 46
IRS Tip Monitoring Is Increasing Under OBBBA . . . . . . . 47
TIP 47
Service Charges Are Not Tips . . . . . . . . . . 47
TIP 48
States May Not Follow the Federal Deduction . . . . . . . . . . 48
TIP 49
Keep Separate Logs if You Work Multiple Jobs . . . . . . . . . . 48
CHAPTER FOUR The Family Fortune: 20 Ways to Build a Tax-Smart Legacy for Your Inner Circle . . 51
TIP 50
Child Tax Credit . . . . . . . . . 52
TIP 51
Child and Dependent Care (CDC) Credit . . . . . . . 52
TIP 52
Earned Income Tax Credit (EITC) . . . . . . . . 52
TIP 53
Adoption Credit . . . . . . . . 53
TIP 54
The American Opportunity Tax Credit (AOTC) . . . . . . . 53
TIP 55
The Lifetime Learning Credit (LLC) . . . . . . . 53
TIP 56
Deduct Student Loan Interest . . . . . . . . 54
TIP 57
Deduct Medical Expenses for Dependents . . . . . . . 54
TIP 58
Deduct Charitable Driving Mileage . . . . . . . . . 55
TIP 59
Use That Dependent Care Account with Your Flexible Spending Account (FSA) . . . . . . . . . . 55
TIP 60
Beef Up Your Health Savings Account (HSA)-It's a Triple Tax Advantage Tool . . . . . . . . . . . 55
TIP 61
Take Advantage of the Newborn Savings Account (One Big Beautiful Bill Act Update) . . . . .. . 56
Tip 62
Save for College (and Way More) with a 529 Plan . . . . . . . 56
TIP 63
Use 529 Funds for Student Loan Repayment . . . . . . . 56
TIP 64
Put Your Kids on the Payroll . . . . . . . . . 57
TIP 65
Fund a Roth IRA for Your Child-The Ultimate Head Start . . . . . . . . . . 57
TIP 66
Use the Annual Gift Tax Exclusion . . . . . . . . . . 57
TIP 67
Understand the "Kiddie Tax" Rule . . . . . . . . . . . . 58
TIP 68
File as Head of Household (HOH) if You Qualify . . . . . . . 58
TIP 69
Check for Qualifying Widow(er) Status . . . . . . . . . 58
CHAPTER FIVE The Shelter Strategy: Maximizing Your Home as a Tax Shield Under the OBBBA . 61
TIP 70
Exploit the Expanded SALT Deduction (OBBBA Update) 62
TIP 71
Deduct Mortgage Interest . . . .. . . . . 62
TIP 72
Don't Forget to Use the $1 Million Limit on Grandfathered Loans . . . . . . . . . . 62
TIP 73
Use HELOC Interest for Home Improvement Only . . . . . 63
TIP 74
Deduct Property Taxes Paid . . . . . . . . . . . 63
TIP 75
Deduct Private Mortgage Insurance (PMI) Premiums Again (Starting 2026) . . . . . . . . . 63
TIP 76
Deduct Mortgage Points on Purchase . . . . . . . . . . . . 64
TIP 77
Deduct Property Taxes Paid at Closing . . . . . .. . . . . . 64
TIP 78
Amortize Refinance Points over the Loan Life . . . . . . . . . . 64
TIP 79
Fully Deduct Prior Refi Points on Sale/Payoff . . . . . . . . . . 65
TIP 80
Add Most Closing Costs to Your Home's Basis . . . . . . . . . . 65
TIP 81
Deduct Interest Paid Before Closing . . . . . . . . 65
TIP 82
Deduct EV Charger Installation Costs (Alternative Fuel Refueling Property Credit) . . . . . . . 65
TIP 83
Maximize the Home Sale Exclusion to Minimize Your Capital Gains at Sale . . . . . . . . . 66
TIP 84
Claim a Partial Home Sale Exclusion . . . . . . . . . . 67
TIP 85
Keep Receipts to Increase Your Home's "Basis" . . . . . . . . . . 67
TIP 86
Deduct Medically Necessary Home Improvements (Itemized Deduction) . . . . . . . . . . 68
TIP 87
Convert a Rental to a Primary Residence (for Exclusion) . . 68
CHAPTER SIX The Rental Playbook: Tax Hacks to Turn Your Property into a Wealth-Building Machine . . 71
TIP 88
Use the 14-Day Rental Loophole (IRC ? 280A) . . . . . . . . . 72
TIP 89
Deduct All "Ordinary and Necessary" Expenses (IRC ? 162) . . . . . . . . . . 72
TIP 90
Use Schedule C for Active Airbnb Hosting (IRC ? 1402) . 73
TIP 91
Use Schedule E for Long-Term Rentals (IRC ? 469) . . . . . 73
TIP 92
Separate Taxes for Business Use (IRC ? 164) . . . . . . . . . . . 74
TIP 93
Build Wealth Using Depreciation: The "Phantom Deduction" (IRC ? 167) . . . .. . . . . 74
TIP 94
Deduct Costs of Attracting Guests (IRC ? 162) . . . . . . . . . 75
TIP 95
Deduct Travel Expenses for Rental Business (IRC ? 162) . . 75
TIP 96
Move Personal Home Deductions to Your Rental (IRC ? 280A) . . . . . . . . 76
TIP 97
Account for Escrow Taxes on HUD-1 (IRC ? 164) . . . . . . 77
TIP 98
Issue Form 1099-MISC for Service Providers (IRC ? 6041) . . . . . . . . . 77
TIP 99
But-You Can Avoid Issuing 1099-MISC with Credit Card Payments (IRC ? 6050W) . . . . . . . . 78
TIP 100
Deduct Interest on Time-Shares (IRC ? 163) . . . . . . . . . . . 79
TIP 101
Depreciate Qualified Improvements (IRC ? 168) . . . . . . . . 79
TIP 102
Deduct Interest to Private Lenders (IRC ? 6050H) . . . . . . 80
TIP 103
Prove Your Profit Motive (IRC ? 183) . . . . . . . . . . . . . . . . 80
TIP 104
Understand Local Hotel/Lodging Taxes (State/Local Law) . . 81
TIP 105
Deposit Refinance Funds into a Business Account (IRC ? 163) . . . . . . . 81
TIP 106
Report Unpaid Interest from Loans (IRC ? 446) . . . . . . . . 82
TIP 107
Understand Passive Activity Loss Limitations (IRC ? 469) . . 82
CHAPTER SEVEN The Strategic Giver: How to Donate Like a Philanthropist and Save Like a Pro . . . 85
TIP 108
Itemize to Deduct (Still the Gatekeeper) . . . . . . . 85
TIP 109
Use the "Bunching" Strategy . . . . . . 86
TIP 110
Verify the Charity's Status . . . . . . . . . 86
TIP 111
Keep Proper Documentation . . . . . . 86
TIP 112
Cash Donations: The Simplest and Cleanest Charitable Deduction . . . . . . 87
TIP 113
Clothing and Household Goods: Condition and Valuation Matter . . . . . . . . . 88
TIP 114
Vehicle Donations: Special Rules, Lower Expectations . . . . 89
TIP 115
Deduct Only the Net Gift . . . . . . . 90
TIP 116
Don't Donate "Losers" . . . . . . . . 90
TIP 117
Donate "Winners" (Appreciated Stock) . . . . . . . . . . 90
TIP 118
Understand the AGI Deduction Limits . . . . . . 91
TIP 119
Carry Forward Excess Gifts . . . . . . . . 91
TIP 120
Use a Qualified Charitable Distribution (QCD) . . . . . . 91
TIP 121
The Power of Donor-Advised Funds (DAFs) . . . . . 92
TIP 122
Charitable Remainder Trusts (CRTs) . . . .. . . . . . 94
TIP 123
CRAT Vs. CRUT: Two Ways a CRT Can Pay You . . . . . . . 95
CHAPTER EIGHT The Hustle Shield: Self-Employed Tax Strategies to Protect Your Profits . . . . 99
TIP 124
Deduct Business Meals at 50% . . . . . . . . . . 100
TIP 125
Separate Meal Costs from Entertainment . . . . . . . . . . 100
TIP 126
Deduct Meals for Transportation Workers at 80% . . . . . . 100
TIP 127
Deduct Business Mileage (Standard Rate) . . . . . . . . . 101
TIP 128
Deduct Parking and Tolls Separately . . . . . . . 102
TIP 129
Deduct Business Taxes Without a Cap . . . . . . . 102
TIP 130
Deduct All Ordinary and Necessary Expenses . . . . . . . . . 102
TIP 131
Deduct Business Travel Expenses . . . . . . . . . . 103
TIP 132
Deduct Employee Safety Costs . . . . . . . . . . . . 103
TIP 133
Deduct a Portion of the Self-Employment Tax . . . . . . . . . 103
TIP 134
Use the Optional Method for Social Security Credits . . . . 104
TIP 135
Claim the 20% Qualified Business Income (QBI) Deduction . . . . . . . . . . 104
TIP 136
Understand the MAGI Limits for the QBI Deduction . . . 105
TIP 137
Consider Becoming a C Corporation (C Corp) . . . . . . . . 105
TIP 138
Pay Yourself a Reasonable Salary (S Corporation Strategy) 106
TIP 139
Use the Cash Method of Accounting . . . . . . . . . 106
Tip 140
Maximize Section 179 Expensing . . . . . . . . . 107
TIP 141
Include Used Property for Bonus Depreciation . . . . . . . . 107
TIP 142
Consider an Office-in-Home Deduction . . . . . . . . . . . 108
TIP 143
Take Advantage of the De Minimis Safe Harbor (DMSH) Rule . . . . . . . . . . 108
TIP 144
You Can't Have Access to an Employer Plan . . . . . . . . . . 110
TIP 145
Your Deduction Is Limited to Your Earned Income . . . . . 110
CHAPTER NINE The Investor's Edge: Mastering Capital Gains, Crypto, and the Stealth "NIIT" Tax . . . . 111
TIP 146
Try to Hold Investments Long Term . . . . . . . . . . 112
TIP 147
Practice Tax-Loss Harvesting . . . . . . . . . . 113
Tip 148
Manage Your Tax Bracket for Capital Gains . . . . . . 114
TIP 149
Donate Appreciated Assets to Charity . . . . . . . . . . . 114
TIP 150
Follow the Wash Sale Rule (IRC ?1091) . . . . . . . . . . . . . 115
TIP 151
Use the Crypto Wash Sale Loophole-While It Lasts . . . . 116
TIP 152
Defer Tax on Mining and Staking . . . . . . . . . . . . 116
TIP 153
Take Advantage of the De Minimis Exemption-If It Passes . . . . . . . . . 117
TIP 154
Try to Hold Crypto for over a Year . . . . . . . . 117
CHAPTER TEN Retirement and Wealth: Mandatory Roth and Long-Term Savings . . . . . . . . . . 119
TIP 155
Maximize Contributions to Retirement Plans . . . . . . . . . 119
TIP 156
Contribute to a Roth IRA-If You Can . . . . . . . . . 121
TIP 157
Take Advantage of the Backdoor Roth . . . . . . . . 122
TIP 158
Prioritize Roth Accounts for the Young'uns . . . . . . . . 122
TIP 159
Avoid IRA Early Withdrawal Penalties . . . . . . . . . 123
TIP 160
Repay 401(k) Loans When You Leave a Job . . . . . . . . . 123
TIP 161
Consider a Roth Conversion in Low-Income Years . . . . . 123
TIP 162
Use IRA Funds for Charitable Giving (Qualified Charitable Distributions) . . . . . . . . . . . 124
TIP 163
Take Advantage of Higher Estate and Gift Tax Exclusions 124
TIP 164
Lower Your MAGI with Smart Contributions . . . . . . . . . 126
TIP 165
Use Roth Accounts Strategically . . . . . . . . . . . 126
TIP 166
Use Tax-Loss Harvesting . . . . . . . . . . . 127
TIP 167
Consider Municipal Bonds . . . . . . . . . 127
TIP 168
Don't Deduct Investment Fees or Tax Prep Costs . . . . . . . 129
TIP 169
Avoid Paying IRA Fees Out of Pocket . . . . . . . . . . 129
TIP 170
Same with Those Management Fees for Private Funds . . . 130
TIP 171
Don't Miss Rollover Deadlines . . . . . . . . . . 130
TIP 172
And Finally, a Roth Conversion Reminder . . . . . . . . . . . . 130
CHAPTER ELEVEN Triple Threat: Turning Your Health Savings Account into a Retirement Powerhouse .131
Tip 173
The Power of the Triple Tax Advantage of Health Savings Accounts . . . . . . . . . . 131
CHAPTER TWELVE The Fast Lane Mastering the Road Rules for Maximum Auto Deductions . . 135
TIP 174
Start with Total Miles-No Fake Reverse-Odometer Tricks . . 136
TIP 175
Log Business Trips Like You're Planning the Perfect Skip Day . . . . . . . 136
TIP 176
Standard Mileage Vs. Actual Expenses-You Get to Choose . . . . . . . . . 136
TIP 177
Checklist to Pick a Method . . . . . . . . 137
TIP 178
Luxury Car Depreciation Has Limits-Apologies to the Ferrari Owners . . . . . . . 138
TIP 179
Want a Big Deduction? Think SUV, Not Ferrari . . . . . . . 139
TIP 180
A Home Office Turns Every Trip into a Business Trip . . . 139
TIP 181
Rideshare Drivers Are Businesses-Even if It's a Side Gig . . 140
TIP 182
Yes, Even Cash Tips Count . . . . . . 140
TIP 183
Advertising Wrap? You've Turned Your Car into a Business Asset . . . . . . . . . 141
TIP 184
Parking and Tolls-The Little Deductions That Add Up . 141
TIP 185
Charitable Mileage-Doing Good Still Gets 14 Cents per Mile . . . . . . . . . 142
TIP 186
Charitable Parking and Tolls-Also Deductible . . . . . . . . 142
TIP 187
Medical Mileage. Sometimes Necessary, Sometimes Deductible . . . . . . 143
TIP 188
Moving Expenses? Nope. . . . . . . . . 143
TIP 189
Standard Mileage Includes Depreciation-Don't Forget This . . . . . . . . 143
TIP 190
Personal Property Taxes May Be Deductible-If They Qualify . . . . . . . 144
TIP 191
Buying Vs. Leasing? Run the Numbers . . . . . . . . . 144
TIP 192
Employer Reimbursements Mean No Double Dipping . . 144
CHAPTER THIRTEEN Wait ... You Tried to Deduct What?: Debunking the Wildest Tax Myths in the Book 147
TIP 193
"My Dog Is My Security System-So He's a Business Expense." . . . . . . . . 148
TIP 194
"I Can Deduct My Wedding Because I Networked There." . . . . . . . . . 148
TIP 195
"My Vacation Was a Business Trip Because I Talked About Work." . . . . . . . . . . . 149
TIP 196
"I Bought Clothes for Work, So Therefore I Can Write Them Off." . . . . . . . . . 149
TIP 197
"I Can Write Off My Kids Because They Help Me on TikTok." . . . . . . . . . 149
TIP 198
"My Boat Is for Client Entertainment." . . . . . . . . . . . 150
TIP 199
"I Can Deduct My Divorce Attorney. It's My Future Financial Planning!" . . . . . . . 150
TIP 200
"I Can Write Off My House Because I Host Friends Who Talk About Business." . . . . . . . . 151
TIP 201
"My Gym Membership Is a Health Deduction." . . . . . . . 151
TIP 202
"I Can Write Off My Dating App Subscriptions. They're Client Research." . . . . . . . . 152
TIP 203
"My Tattoo Is Advertising. It Has My Company Logo." . . 152
TIP 204
"My Pool Is a Medical Expense Because It Reduces My Stress." . . . . . . . . . 152
TIP 205
"I Lost Money on Crypto, so I Don't Need to Report It." . . . . . . . 153
TIP 206
"The IRS Doesn't Care About Side Cash." . . . . . . . . 153
TIP 207
"My Vacation Rental Losses Don't Matter Because It's Just a Hobby." . . . . . . . 154
TIP 208
"I Don't Need Receipts. The IRS Trusts Me." . . . . . . . . . . 154
TIP 209
"If I Owe Less Than $1,000, They Won't Care." . . . . . . . . 154
TIP 210
"I Don't Have to File if I Didn't Make Much Money." . . . 155
TIP 211
"If I Get Audited, I'll Just Say My Accountant Did It." . . 155
TIP 212
"The IRS Won't Notice. I'm Too Small." . . . . . . . . . . . . . 156
CHAPTER FOURTEEN The Great Extension: Mastering April Deadline & Uncle Sam's Good Side ...157
TIP 213
File Electronically. It's Faster, Safer, and Smarter . . . . . . . . 158
TIP 214
Uncle Sam Needs to Hear from You by April 15 . . . . . . . 158
TIP 215
Even if You Can't Pay Your Tax Bill-File Anyway! . . . . . 159
TIP 216
Now, Even if You Extend, You Still Have to Pay What You Owe . . . . . . . 159
TIP 217
If You Owe, Make Your Payment Online . . . . . . . . . 160
TIP 218
Set Up an IRS Payment Plan if You Can't Pay in Full . . . . 160
TIP 219
Short-Term Payment Extensions-The 180-Day Grace Period . . . . . . 161
TIP 220
Paying with a Credit Card: Good Idea or Bad One? . . . . . 161
TIP 221
Track Your Refund (or Payment) . . . . . . . . . 162
TIP 222
All Refunds Aren't Instant-Even When You E-File . . . . . 162
TIP 223
How to Fix a Mistake: Form 1040-X . . . . . . . . 162
TIP 224
Don't Forget to Amend Your State Return Too . . . . . . . . . 163
TIP 225
The IRS Does Forgive Penalties-Sometimes . . . . . . . . . . 163
TIP 226
How IRS Interest Really Works-And Why the Penalty Adds Up So Fast . . . . . . . . 163
TIP 227
Ignoring IRS Letters Doesn't Make Them Go Away . . . . . 164
TIP 228
Create an IRS Online Account-It's Your Digital Tax Dashboard . . . . . . . . . 164
TIP 229
Get an IRS Identity Protection PIN (IP PIN)-Especially if You've Ever Been Hacked . . . . . . 165
TIP 230
Know What "Injured Spouse" Means . . . . . . . . 166
TIP 231
Same with "Innocent Spouse" . . . . . . . 167
TIP 232
And My Quick Public Service Announcement . . . . . . . . 168
TIP 233
Keep Your Tax Records-But Not Forever . . . . . . . 169
TIP 234
Celebrate Responsibly-And Then Make a Note to Start Earlier Next Year . . . . . . . . 169
CHAPTER FIFTEEN The Goodfellas Guide to the IRS: Surviving an Audit Without Losing Your Cool . . . . . 171
TIP 235
Reporting Round Numbers (aka "The $500 Rule") . . . . . 172
TIP 236
Large Deductions Compared with Your Income . . . . . . . . 172
TIP 237
Unreported 1099 Income . . . . . . . . 172
TIP 238
Claiming 100% Business Use of a Vehicle . . . . . . . 173
TIP 239
Excessive Meal and Entertainment Deductions . . . . . . 173
TIP 240
Home Office Abuse . . . . . . . . . 174
TIP 241
Cash-Heavy Businesses . . . . . . . . . . 174
TIP 242
Claiming the Earned Income Tax Credit (EITC) Incorrectly . . . . . . . . 174
TIP 243
Amending Returns Every Year . . . . . . . . . 175
TIP 244
"Hobby" Businesses with Years of Losses . . . . . . . . 175
TIP 245
Don't Panic-An Audit Isn't an Indictment . . . . . . . . . . . 176
TIP 246
Know What Kind of Audit You're Dealing With . . . . . . . 177
TIP 247
Respond Before the Deadline-Or Fuggedaboutit . . . . . . 177
TIP 248
Bring Receipts-Literally . . . . . . . . . . . 177
TIP 249
Get a Professional-Your Consigliere . . . . . . . . . . . 178
TIP 250
Don't Volunteer Extra Information . . . . . . . . . . . . 179
TIP 251
Get Everything in Writing-No Backroom Deals . . . . . . 179
TIP 252
You Can Appeal. Don't Let One Agent Be Judge and Jury . . . . . . . . 179
TIP 253
Fix Whatever Triggered the Audit . . . . . . . . 180
TIP 254
Celebrate the Win-Even if You Owe Money . . . . . . . . . 180
Conclusion . . . . . . . . . . 181
APPENDIX A Recordkeeping That Actually Saves You Money . . . . . . 185
APPENDIX B DIY Versus Hiring a Tax Pro . . . . . . . . 189
APPENDIX C I Need a Tax Pro . . . . . . . . . 193
APPENDIX D Think About State Taxes Before You Move . . . . . . 197
Acknowledgments . . . . . . . . . . . 203
Index . . . . . . . . 205
About the Author . . . . . . . 217
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Table of Contents to DEDUCT EVERYTHING!: Hundreds of Tax Tips, Legal Write-Offs, Credits, and Loopholes by Tracy Byrnes, MBA, CDFAAuthor's Note
Introduction
CHAPTER ONE The Great Reset: Navigating the OBBBA Tax Landscape . . . . . .. . . 1
TIP 1
Standard Deduction: Higher and Permanent (IRC 63(c)) . . 2
TIP 2
SALT Deduction: A New Cap, a New Clock (IRC 164) . . . 4
TIP 3
Personal Tax Rates: Still Lower, Still Favoring High Earners (IRC 1) . . . . . . . 4
TIP 4
Advisor Fees Aren't Deductible-And Charitable Deductions Now Start After a "Floor" . . . . . . . 5
TIP 5
Child Tax Credit: More Families Qualify, More Refundable Cash (IRC 24) . . . . . . . . 5
TIP 6
Estate and Gift Tax: Stability Instead of Panic (IRC 2010(c); Treasury Regulation 20.2010-1(c)) . 6
TIP 7
Business Owners: Cleaner Rules, Bigger QSBS Wins (IRC 199A and 1202) . . . . . . . 8
TIP 8
Above-the-Line Deductions (2026-2028 Only) . . . . . . . . . 10
TIP 9
The Mandatory Roth Catch-Up Rule: A Short-Term Hit for a Long-Term Win (IRC 219, 401) . . . .. . . . 11
TIP 10
IRS Digital Documentation Rules (IRC 6001, 6201) . . . . 12
CHAPTER TWO From Cribs to Canes: How the OBBBA Unlocks Tax Breaks for Kids, Workers, and Retirees 13
TIP 11
Track Your Overtime Carefully-Only the Premium Is Deductible . . . . . . . 13
TIP 12
You May Deduct Up to $12,500 (Single) or $25,000 (Married Filing Jointly) . . . . . . . . 14
TIP 13
Your MAGI Affects Your Deduction . . . .. . . . . 14
TIP 14
Keep Pay Stubs and Overtime Records Until Reporting Rules Are Final . . . . 15
TIP 15
Remember: You Still Owe FICA Taxes on All Overtime . . . 15
TIP 16
Prepare to Track Only the Overtime Premium (the "Half") . 15
TIP 17
Understand the Two-Year W-2 Reporting Transition . . . . . 16
TIP 18
Do Not Reclassify Compensation: Beware of Anti-Abuse Rules . . . . . . . . . . 17
TIP 19
Train HR and Payroll Teams Early . . . . . . . . . . 17
TIP 20
Understand That States May Not Follow Federal Rules . . . 17
TIP 21
Supercharged Senior Deduction (the New $6,000 Bonus) . 18
TIP 22
More Social Security Benefits Stay Tax-Free (the End of a 40-Year Problem) . . . . . . . . . 19
TIP 23
Permanent 7.5% Medical Expense Threshold . . . . . . . . . . . 20
TIP 24
The New RMD Standard . . . . . . . . . . . . . . . . . . . . . . . . . . 21
TIP 25
Bigger Catch-Up Contributions for Ages 60-68 . . . . . . . . 22
TIP 26
Expanded Saver's Credit for Seniors Who "Un-Retire" . . . . 23
TIP 27
Expanded Qualified Charitable Distributions (QCDs) (IRC ? 408(d)(8)) . . . . . . . 25
TIP 28
Credits for Caregiving and Aging-in-Place Financial Support . . . . . . . . . . . 26
TIP 29
Higher Deductions for Long-Term Care Insurance Premiums . . . . . . . . . . 28
TIP 30
Maximize Annual Contributions ($5,000 Limit) . . . . . . . . 32
TIP 31
Look for a Potential Employer Match (Up to $2,500) . . . . 33
TIP 32
Prepare for Taxable Withdrawals After Age 18 . . . . . . . . . . 33
TIP 33
Expect Low-Cost, Index-Based Investments Only-No Stock Picking, No Crypto . . . . . . 33
TIP 34
Don't Miss the Dell Foundation's $250 Seed Money (for Older Kids) . . . . . . . . 34
CHAPTER THREE Gratitude with a Garnish: How to Keep More of Your Tips Under the OBBBA . . . . . . . 39
Tip 35
Keep a Daily Tip Record . . . . . . . . . . . . . . . . . . . . . . . . . . 40
TIP 36
Report Cash Tips to Your Employer Monthly . . . . . . . . . . 40
TIP 37
New: Claim the $25,000 Tip Deduction (2025-2028) . . . 41
TIP 38
Tips Are Still Subject to FICA (Always Have Been) . . . . . . 43
TIP 39
For Tip Pools, Only Report Your Net Tips . . . . . . . . . . . . . 43
TIP 40
Understand "Uncollected FICA" on Your W-2 . . . . . . . . . 44
TIP 41
Report All Tips on Your 1040 (Even Noncash) . . . . . . . . . . 44
TIP 42
Pay Self-Employment Tax on Unreported Tips . . . . . . . . . . 45
TIP 43
Verify Allocated Tips on Your W-2 . . . . . . . . 45
TIP 44
Self-Employed Workers Can Claim the $25,000 Tip Deduction . . . . . . .. . 46
TIP 45
Electronic Tips (Venmo, Zelle, CashApp) Are Fully Taxable . . . . . . . . 46
TIP 46
IRS Tip Monitoring Is Increasing Under OBBBA . . . . . . . 47
TIP 47
Service Charges Are Not Tips . . . . . . . . . . 47
TIP 48
States May Not Follow the Federal Deduction . . . . . . . . . . 48
TIP 49
Keep Separate Logs if You Work Multiple Jobs . . . . . . . . . . 48
CHAPTER FOUR The Family Fortune: 20 Ways to Build a Tax-Smart Legacy for Your Inner Circle . . 51
TIP 50
Child Tax Credit . . . . . . . . . 52
TIP 51
Child and Dependent Care (CDC) Credit . . . . . . . 52
TIP 52
Earned Income Tax Credit (EITC) . . . . . . . . 52
TIP 53
Adoption Credit . . . . . . . . 53
TIP 54
The American Opportunity Tax Credit (AOTC) . . . . . . . 53
TIP 55
The Lifetime Learning Credit (LLC) . . . . . . . 53
TIP 56
Deduct Student Loan Interest . . . . . . . . 54
TIP 57
Deduct Medical Expenses for Dependents . . . . . . . 54
TIP 58
Deduct Charitable Driving Mileage . . . . . . . . . 55
TIP 59
Use That Dependent Care Account with Your Flexible Spending Account (FSA) . . . . . . . . . . 55
TIP 60
Beef Up Your Health Savings Account (HSA)-It's a Triple Tax Advantage Tool . . . . . . . . . . . 55
TIP 61
Take Advantage of the Newborn Savings Account (One Big Beautiful Bill Act Update) . . . . .. . 56
Tip 62
Save for College (and Way More) with a 529 Plan . . . . . . . 56
TIP 63
Use 529 Funds for Student Loan Repayment . . . . . . . 56
TIP 64
Put Your Kids on the Payroll . . . . . . . . . 57
TIP 65
Fund a Roth IRA for Your Child-The Ultimate Head Start . . . . . . . . . . 57
TIP 66
Use the Annual Gift Tax Exclusion . . . . . . . . . . 57
TIP 67
Understand the "Kiddie Tax" Rule . . . . . . . . . . . . 58
TIP 68
File as Head of Household (HOH) if You Qualify . . . . . . . 58
TIP 69
Check for Qualifying Widow(er) Status . . . . . . . . . 58
CHAPTER FIVE The Shelter Strategy: Maximizing Your Home as a Tax Shield Under the OBBBA . 61
TIP 70
Exploit the Expanded SALT Deduction (OBBBA Update) 62
TIP 71
Deduct Mortgage Interest . . . .. . . . . 62
TIP 72
Don't Forget to Use the $1 Million Limit on Grandfathered Loans . . . . . . . . . . 62
TIP 73
Use HELOC Interest for Home Improvement Only . . . . . 63
TIP 74
Deduct Property Taxes Paid . . . . . . . . . . . 63
TIP 75
Deduct Private Mortgage Insurance (PMI) Premiums Again (Starting 2026) . . . . . . . . . 63
TIP 76
Deduct Mortgage Points on Purchase . . . . . . . . . . . . 64
TIP 77
Deduct Property Taxes Paid at Closing . . . . . .. . . . . . 64
TIP 78
Amortize Refinance Points over the Loan Life . . . . . . . . . . 64
TIP 79
Fully Deduct Prior Refi Points on Sale/Payoff . . . . . . . . . . 65
TIP 80
Add Most Closing Costs to Your Home's Basis . . . . . . . . . . 65
TIP 81
Deduct Interest Paid Before Closing . . . . . . . . 65
TIP 82
Deduct EV Charger Installation Costs (Alternative Fuel Refueling Property Credit) . . . . . . . 65
TIP 83
Maximize the Home Sale Exclusion to Minimize Your Capital Gains at Sale . . . . . . . . . 66
TIP 84
Claim a Partial Home Sale Exclusion . . . . . . . . . . 67
TIP 85
Keep Receipts to Increase Your Home's "Basis" . . . . . . . . . . 67
TIP 86
Deduct Medically Necessary Home Improvements (Itemized Deduction) . . . . . . . . . . 68
TIP 87
Convert a Rental to a Primary Residence (for Exclusion) . . 68
CHAPTER SIX The Rental Playbook: Tax Hacks to Turn Your Property into a Wealth-Building Machine . . 71
TIP 88
Use the 14-Day Rental Loophole (IRC ? 280A) . . . . . . . . . 72
TIP 89
Deduct All "Ordinary and Necessary" Expenses (IRC ? 162) . . . . . . . . . . 72
TIP 90
Use Schedule C for Active Airbnb Hosting (IRC ? 1402) . 73
TIP 91
Use Schedule E for Long-Term Rentals (IRC ? 469) . . . . . 73
TIP 92
Separate Taxes for Business Use (IRC ? 164) . . . . . . . . . . . 74
TIP 93
Build Wealth Using Depreciation: The "Phantom Deduction" (IRC ? 167) . . . .. . . . . 74
TIP 94
Deduct Costs of Attracting Guests (IRC ? 162) . . . . . . . . . 75
TIP 95
Deduct Travel Expenses for Rental Business (IRC ? 162) . . 75
TIP 96
Move Personal Home Deductions to Your Rental (IRC ? 280A) . . . . . . . . 76
TIP 97
Account for Escrow Taxes on HUD-1 (IRC ? 164) . . . . . . 77
TIP 98
Issue Form 1099-MISC for Service Providers (IRC ? 6041) . . . . . . . . . 77
TIP 99
But-You Can Avoid Issuing 1099-MISC with Credit Card Payments (IRC ? 6050W) . . . . . . . . 78
TIP 100
Deduct Interest on Time-Shares (IRC ? 163) . . . . . . . . . . . 79
TIP 101
Depreciate Qualified Improvements (IRC ? 168) . . . . . . . . 79
TIP 102
Deduct Interest to Private Lenders (IRC ? 6050H) . . . . . . 80
TIP 103
Prove Your Profit Motive (IRC ? 183) . . . . . . . . . . . . . . . . 80
TIP 104
Understand Local Hotel/Lodging Taxes (State/Local Law) . . 81
TIP 105
Deposit Refinance Funds into a Business Account (IRC ? 163) . . . . . . . 81
TIP 106
Report Unpaid Interest from Loans (IRC ? 446) . . . . . . . . 82
TIP 107
Understand Passive Activity Loss Limitations (IRC ? 469) . . 82
CHAPTER SEVEN The Strategic Giver: How to Donate Like a Philanthropist and Save Like a Pro . . . 85
TIP 108
Itemize to Deduct (Still the Gatekeeper) . . . . . . . 85
TIP 109
Use the "Bunching" Strategy . . . . . . 86
TIP 110
Verify the Charity's Status . . . . . . . . . 86
TIP 111
Keep Proper Documentation . . . . . . 86
TIP 112
Cash Donations: The Simplest and Cleanest Charitable Deduction . . . . . . 87
TIP 113
Clothing and Household Goods: Condition and Valuation Matter . . . . . . . . . 88
TIP 114
Vehicle Donations: Special Rules, Lower Expectations . . . . 89
TIP 115
Deduct Only the Net Gift . . . . . . . 90
TIP 116
Don't Donate "Losers" . . . . . . . . 90
TIP 117
Donate "Winners" (Appreciated Stock) . . . . . . . . . . 90
TIP 118
Understand the AGI Deduction Limits . . . . . . 91
TIP 119
Carry Forward Excess Gifts . . . . . . . . 91
TIP 120
Use a Qualified Charitable Distribution (QCD) . . . . . . 91
TIP 121
The Power of Donor-Advised Funds (DAFs) . . . . . 92
TIP 122
Charitable Remainder Trusts (CRTs) . . . .. . . . . . 94
TIP 123
CRAT Vs. CRUT: Two Ways a CRT Can Pay You . . . . . . . 95
CHAPTER EIGHT The Hustle Shield: Self-Employed Tax Strategies to Protect Your Profits . . . . 99
TIP 124
Deduct Business Meals at 50% . . . . . . . . . . 100
TIP 125
Separate Meal Costs from Entertainment . . . . . . . . . . 100
TIP 126
Deduct Meals for Transportation Workers at 80% . . . . . . 100
TIP 127
Deduct Business Mileage (Standard Rate) . . . . . . . . . 101
TIP 128
Deduct Parking and Tolls Separately . . . . . . . 102
TIP 129
Deduct Business Taxes Without a Cap . . . . . . . 102
TIP 130
Deduct All Ordinary and Necessary Expenses . . . . . . . . . 102
TIP 131
Deduct Business Travel Expenses . . . . . . . . . . 103
TIP 132
Deduct Employee Safety Costs . . . . . . . . . . . . 103
TIP 133
Deduct a Portion of the Self-Employment Tax . . . . . . . . . 103
TIP 134
Use the Optional Method for Social Security Credits . . . . 104
TIP 135
Claim the 20% Qualified Business Income (QBI) Deduction . . . . . . . . . . 104
TIP 136
Understand the MAGI Limits for the QBI Deduction . . . 105
TIP 137
Consider Becoming a C Corporation (C Corp) . . . . . . . . 105
TIP 138
Pay Yourself a Reasonable Salary (S Corporation Strategy) 106
TIP 139
Use the Cash Method of Accounting . . . . . . . . . 106
Tip 140
Maximize Section 179 Expensing . . . . . . . . . 107
TIP 141
Include Used Property for Bonus Depreciation . . . . . . . . 107
TIP 142
Consider an Office-in-Home Deduction . . . . . . . . . . . 108
TIP 143
Take Advantage of the De Minimis Safe Harbor (DMSH) Rule . . . . . . . . . . 108
TIP 144
You Can't Have Access to an Employer Plan . . . . . . . . . . 110
TIP 145
Your Deduction Is Limited to Your Earned Income . . . . . 110
CHAPTER NINE The Investor's Edge: Mastering Capital Gains, Crypto, and the Stealth "NIIT" Tax . . . . 111
TIP 146
Try to Hold Investments Long Term . . . . . . . . . . 112
TIP 147
Practice Tax-Loss Harvesting . . . . . . . . . . 113
Tip 148
Manage Your Tax Bracket for Capital Gains . . . . . . 114
TIP 149
Donate Appreciated Assets to Charity . . . . . . . . . . . 114
TIP 150
Follow the Wash Sale Rule (IRC ?1091) . . . . . . . . . . . . . 115
TIP 151
Use the Crypto Wash Sale Loophole-While It Lasts . . . . 116
TIP 152
Defer Tax on Mining and Staking . . . . . . . . . . . . 116
TIP 153
Take Advantage of the De Minimis Exemption-If It Passes . . . . . . . . . 117
TIP 154
Try to Hold Crypto for over a Year . . . . . . . . 117
CHAPTER TEN Retirement and Wealth: Mandatory Roth and Long-Term Savings . . . . . . . . . . 119
TIP 155
Maximize Contributions to Retirement Plans . . . . . . . . . 119
TIP 156
Contribute to a Roth IRA-If You Can . . . . . . . . . 121
TIP 157
Take Advantage of the Backdoor Roth . . . . . . . . 122
TIP 158
Prioritize Roth Accounts for the Young'uns . . . . . . . . 122
TIP 159
Avoid IRA Early Withdrawal Penalties . . . . . . . . . 123
TIP 160
Repay 401(k) Loans When You Leave a Job . . . . . . . . . 123
TIP 161
Consider a Roth Conversion in Low-Income Years . . . . . 123
TIP 162
Use IRA Funds for Charitable Giving (Qualified Charitable Distributions) . . . . . . . . . . . 124
TIP 163
Take Advantage of Higher Estate and Gift Tax Exclusions 124
TIP 164
Lower Your MAGI with Smart Contributions . . . . . . . . . 126
TIP 165
Use Roth Accounts Strategically . . . . . . . . . . . 126
TIP 166
Use Tax-Loss Harvesting . . . . . . . . . . . 127
TIP 167
Consider Municipal Bonds . . . . . . . . . 127
TIP 168
Don't Deduct Investment Fees or Tax Prep Costs . . . . . . . 129
TIP 169
Avoid Paying IRA Fees Out of Pocket . . . . . . . . . . 129
TIP 170
Same with Those Management Fees for Private Funds . . . 130
TIP 171
Don't Miss Rollover Deadlines . . . . . . . . . . 130
TIP 172
And Finally, a Roth Conversion Reminder . . . . . . . . . . . . 130
CHAPTER ELEVEN Triple Threat: Turning Your Health Savings Account into a Retirement Powerhouse .131
Tip 173
The Power of the Triple Tax Advantage of Health Savings Accounts . . . . . . . . . . 131
CHAPTER TWELVE The Fast Lane Mastering the Road Rules for Maximum Auto Deductions . . 135
TIP 174
Start with Total Miles-No Fake Reverse-Odometer Tricks . . 136
TIP 175
Log Business Trips Like You're Planning the Perfect Skip Day . . . . . . . 136
TIP 176
Standard Mileage Vs. Actual Expenses-You Get to Choose . . . . . . . . . 136
TIP 177
Checklist to Pick a Method . . . . . . . . 137
TIP 178
Luxury Car Depreciation Has Limits-Apologies to the Ferrari Owners . . . . . . . 138
TIP 179
Want a Big Deduction? Think SUV, Not Ferrari . . . . . . . 139
TIP 180
A Home Office Turns Every Trip into a Business Trip . . . 139
TIP 181
Rideshare Drivers Are Businesses-Even if It's a Side Gig . . 140
TIP 182
Yes, Even Cash Tips Count . . . . . . 140
TIP 183
Advertising Wrap? You've Turned Your Car into a Business Asset . . . . . . . . . 141
TIP 184
Parking and Tolls-The Little Deductions That Add Up . 141
TIP 185
Charitable Mileage-Doing Good Still Gets 14 Cents per Mile . . . . . . . . . 142
TIP 186
Charitable Parking and Tolls-Also Deductible . . . . . . . . 142
TIP 187
Medical Mileage. Sometimes Necessary, Sometimes Deductible . . . . . . 143
TIP 188
Moving Expenses? Nope. . . . . . . . . 143
TIP 189
Standard Mileage Includes Depreciation-Don't Forget This . . . . . . . . 143
TIP 190
Personal Property Taxes May Be Deductible-If They Qualify . . . . . . . 144
TIP 191
Buying Vs. Leasing? Run the Numbers . . . . . . . . . 144
TIP 192
Employer Reimbursements Mean No Double Dipping . . 144
CHAPTER THIRTEEN Wait ... You Tried to Deduct What?: Debunking the Wildest Tax Myths in the Book 147
TIP 193
"My Dog Is My Security System-So He's a Business Expense." . . . . . . . . 148
TIP 194
"I Can Deduct My Wedding Because I Networked There." . . . . . . . . . 148
TIP 195
"My Vacation Was a Business Trip Because I Talked About Work." . . . . . . . . . . . 149
TIP 196
"I Bought Clothes for Work, So Therefore I Can Write Them Off." . . . . . . . . . 149
TIP 197
"I Can Write Off My Kids Because They Help Me on TikTok." . . . . . . . . . 149
TIP 198
"My Boat Is for Client Entertainment." . . . . . . . . . . . 150
TIP 199
"I Can Deduct My Divorce Attorney. It's My Future Financial Planning!" . . . . . . . 150
TIP 200
"I Can Write Off My House Because I Host Friends Who Talk About Business." . . . . . . . . 151
TIP 201
"My Gym Membership Is a Health Deduction." . . . . . . . 151
TIP 202
"I Can Write Off My Dating App Subscriptions. They're Client Research." . . . . . . . . 152
TIP 203
"My Tattoo Is Advertising. It Has My Company Logo." . . 152
TIP 204
"My Pool Is a Medical Expense Because It Reduces My Stress." . . . . . . . . . 152
TIP 205
"I Lost Money on Crypto, so I Don't Need to Report It." . . . . . . . 153
TIP 206
"The IRS Doesn't Care About Side Cash." . . . . . . . . 153
TIP 207
"My Vacation Rental Losses Don't Matter Because It's Just a Hobby." . . . . . . . 154
TIP 208
"I Don't Need Receipts. The IRS Trusts Me." . . . . . . . . . . 154
TIP 209
"If I Owe Less Than $1,000, They Won't Care." . . . . . . . . 154
TIP 210
"I Don't Have to File if I Didn't Make Much Money." . . . 155
TIP 211
"If I Get Audited, I'll Just Say My Accountant Did It." . . 155
TIP 212
"The IRS Won't Notice. I'm Too Small." . . . . . . . . . . . . . 156
CHAPTER FOURTEEN The Great Extension: Mastering April Deadline & Uncle Sam's Good Side ...157
TIP 213
File Electronically. It's Faster, Safer, and Smarter . . . . . . . . 158
TIP 214
Uncle Sam Needs to Hear from You by April 15 . . . . . . . 158
TIP 215
Even if You Can't Pay Your Tax Bill-File Anyway! . . . . . 159
TIP 216
Now, Even if You Extend, You Still Have to Pay What You Owe . . . . . . . 159
TIP 217
If You Owe, Make Your Payment Online . . . . . . . . . 160
TIP 218
Set Up an IRS Payment Plan if You Can't Pay in Full . . . . 160
TIP 219
Short-Term Payment Extensions-The 180-Day Grace Period . . . . . . 161
TIP 220
Paying with a Credit Card: Good Idea or Bad One? . . . . . 161
TIP 221
Track Your Refund (or Payment) . . . . . . . . . 162
TIP 222
All Refunds Aren't Instant-Even When You E-File . . . . . 162
TIP 223
How to Fix a Mistake: Form 1040-X . . . . . . . . 162
TIP 224
Don't Forget to Amend Your State Return Too . . . . . . . . . 163
TIP 225
The IRS Does Forgive Penalties-Sometimes . . . . . . . . . . 163
TIP 226
How IRS Interest Really Works-And Why the Penalty Adds Up So Fast . . . . . . . . 163
TIP 227
Ignoring IRS Letters Doesn't Make Them Go Away . . . . . 164
TIP 228
Create an IRS Online Account-It's Your Digital Tax Dashboard . . . . . . . . . 164
TIP 229
Get an IRS Identity Protection PIN (IP PIN)-Especially if You've Ever Been Hacked . . . . . . 165
TIP 230
Know What "Injured Spouse" Means . . . . . . . . 166
TIP 231
Same with "Innocent Spouse" . . . . . . . 167
TIP 232
And My Quick Public Service Announcement . . . . . . . . 168
TIP 233
Keep Your Tax Records-But Not Forever . . . . . . . 169
TIP 234
Celebrate Responsibly-And Then Make a Note to Start Earlier Next Year . . . . . . . . 169
CHAPTER FIFTEEN The Goodfellas Guide to the IRS: Surviving an Audit Without Losing Your Cool . . . . . 171
TIP 235
Reporting Round Numbers (aka "The $500 Rule") . . . . . 172
TIP 236
Large Deductions Compared with Your Income . . . . . . . . 172
TIP 237
Unreported 1099 Income . . . . . . . . 172
TIP 238
Claiming 100% Business Use of a Vehicle . . . . . . . 173
TIP 239
Excessive Meal and Entertainment Deductions . . . . . . 173
TIP 240
Home Office Abuse . . . . . . . . . 174
TIP 241
Cash-Heavy Businesses . . . . . . . . . . 174
TIP 242
Claiming the Earned Income Tax Credit (EITC) Incorrectly . . . . . . . . 174
TIP 243
Amending Returns Every Year . . . . . . . . . 175
TIP 244
"Hobby" Businesses with Years of Losses . . . . . . . . 175
TIP 245
Don't Panic-An Audit Isn't an Indictment . . . . . . . . . . . 176
TIP 246
Know What Kind of Audit You're Dealing With . . . . . . . 177
TIP 247
Respond Before the Deadline-Or Fuggedaboutit . . . . . . 177
TIP 248
Bring Receipts-Literally . . . . . . . . . . . 177
TIP 249
Get a Professional-Your Consigliere . . . . . . . . . . . 178
TIP 250
Don't Volunteer Extra Information . . . . . . . . . . . . 179
TIP 251
Get Everything in Writing-No Backroom Deals . . . . . . 179
TIP 252
You Can Appeal. Don't Let One Agent Be Judge and Jury . . . . . . . . 179
TIP 253
Fix Whatever Triggered the Audit . . . . . . . . 180
TIP 254
Celebrate the Win-Even if You Owe Money . . . . . . . . . 180
Conclusion . . . . . . . . . . 181
APPENDIX A Recordkeeping That Actually Saves You Money . . . . . . 185
APPENDIX B DIY Versus Hiring a Tax Pro . . . . . . . . 189
APPENDIX C I Need a Tax Pro . . . . . . . . . 193
APPENDIX D Think About State Taxes Before You Move . . . . . . 197
Acknowledgments . . . . . . . . . . . 203
Index . . . . . . . . 205
About the Author . . . . . . . 217
Introduction
CHAPTER ONE The Great Reset: Navigating the OBBBA Tax Landscape . . . . . .. . . 1
TIP 1
Standard Deduction: Higher and Permanent (IRC 63(c)) . . 2
TIP 2
SALT Deduction: A New Cap, a New Clock (IRC 164) . . . 4
TIP 3
Personal Tax Rates: Still Lower, Still Favoring High Earners (IRC 1) . . . . . . . 4
TIP 4
Advisor Fees Aren't Deductible-And Charitable Deductions Now Start After a "Floor" . . . . . . . 5
TIP 5
Child Tax Credit: More Families Qualify, More Refundable Cash (IRC 24) . . . . . . . . 5
TIP 6
Estate and Gift Tax: Stability Instead of Panic (IRC 2010(c); Treasury Regulation 20.2010-1(c)) . 6
TIP 7
Business Owners: Cleaner Rules, Bigger QSBS Wins (IRC 199A and 1202) . . . . . . . 8
TIP 8
Above-the-Line Deductions (2026-2028 Only) . . . . . . . . . 10
TIP 9
The Mandatory Roth Catch-Up Rule: A Short-Term Hit for a Long-Term Win (IRC 219, 401) . . . .. . . . 11
TIP 10
IRS Digital Documentation Rules (IRC 6001, 6201) . . . . 12
CHAPTER TWO From Cribs to Canes: How the OBBBA Unlocks Tax Breaks for Kids, Workers, and Retirees 13
TIP 11
Track Your Overtime Carefully-Only the Premium Is Deductible . . . . . . . 13
TIP 12
You May Deduct Up to $12,500 (Single) or $25,000 (Married Filing Jointly) . . . . . . . . 14
TIP 13
Your MAGI Affects Your Deduction . . . .. . . . . 14
TIP 14
Keep Pay Stubs and Overtime Records Until Reporting Rules Are Final . . . . 15
TIP 15
Remember: You Still Owe FICA Taxes on All Overtime . . . 15
TIP 16
Prepare to Track Only the Overtime Premium (the "Half") . 15
TIP 17
Understand the Two-Year W-2 Reporting Transition . . . . . 16
TIP 18
Do Not Reclassify Compensation: Beware of Anti-Abuse Rules . . . . . . . . . . 17
TIP 19
Train HR and Payroll Teams Early . . . . . . . . . . 17
TIP 20
Understand That States May Not Follow Federal Rules . . . 17
TIP 21
Supercharged Senior Deduction (the New $6,000 Bonus) . 18
TIP 22
More Social Security Benefits Stay Tax-Free (the End of a 40-Year Problem) . . . . . . . . . 19
TIP 23
Permanent 7.5% Medical Expense Threshold . . . . . . . . . . . 20
TIP 24
The New RMD Standard . . . . . . . . . . . . . . . . . . . . . . . . . . 21
TIP 25
Bigger Catch-Up Contributions for Ages 60-68 . . . . . . . . 22
TIP 26
Expanded Saver's Credit for Seniors Who "Un-Retire" . . . . 23
TIP 27
Expanded Qualified Charitable Distributions (QCDs) (IRC ? 408(d)(8)) . . . . . . . 25
TIP 28
Credits for Caregiving and Aging-in-Place Financial Support . . . . . . . . . . . 26
TIP 29
Higher Deductions for Long-Term Care Insurance Premiums . . . . . . . . . . 28
TIP 30
Maximize Annual Contributions ($5,000 Limit) . . . . . . . . 32
TIP 31
Look for a Potential Employer Match (Up to $2,500) . . . . 33
TIP 32
Prepare for Taxable Withdrawals After Age 18 . . . . . . . . . . 33
TIP 33
Expect Low-Cost, Index-Based Investments Only-No Stock Picking, No Crypto . . . . . . 33
TIP 34
Don't Miss the Dell Foundation's $250 Seed Money (for Older Kids) . . . . . . . . 34
CHAPTER THREE Gratitude with a Garnish: How to Keep More of Your Tips Under the OBBBA . . . . . . . 39
Tip 35
Keep a Daily Tip Record . . . . . . . . . . . . . . . . . . . . . . . . . . 40
TIP 36
Report Cash Tips to Your Employer Monthly . . . . . . . . . . 40
TIP 37
New: Claim the $25,000 Tip Deduction (2025-2028) . . . 41
TIP 38
Tips Are Still Subject to FICA (Always Have Been) . . . . . . 43
TIP 39
For Tip Pools, Only Report Your Net Tips . . . . . . . . . . . . . 43
TIP 40
Understand "Uncollected FICA" on Your W-2 . . . . . . . . . 44
TIP 41
Report All Tips on Your 1040 (Even Noncash) . . . . . . . . . . 44
TIP 42
Pay Self-Employment Tax on Unreported Tips . . . . . . . . . . 45
TIP 43
Verify Allocated Tips on Your W-2 . . . . . . . . 45
TIP 44
Self-Employed Workers Can Claim the $25,000 Tip Deduction . . . . . . .. . 46
TIP 45
Electronic Tips (Venmo, Zelle, CashApp) Are Fully Taxable . . . . . . . . 46
TIP 46
IRS Tip Monitoring Is Increasing Under OBBBA . . . . . . . 47
TIP 47
Service Charges Are Not Tips . . . . . . . . . . 47
TIP 48
States May Not Follow the Federal Deduction . . . . . . . . . . 48
TIP 49
Keep Separate Logs if You Work Multiple Jobs . . . . . . . . . . 48
CHAPTER FOUR The Family Fortune: 20 Ways to Build a Tax-Smart Legacy for Your Inner Circle . . 51
TIP 50
Child Tax Credit . . . . . . . . . 52
TIP 51
Child and Dependent Care (CDC) Credit . . . . . . . 52
TIP 52
Earned Income Tax Credit (EITC) . . . . . . . . 52
TIP 53
Adoption Credit . . . . . . . . 53
TIP 54
The American Opportunity Tax Credit (AOTC) . . . . . . . 53
TIP 55
The Lifetime Learning Credit (LLC) . . . . . . . 53
TIP 56
Deduct Student Loan Interest . . . . . . . . 54
TIP 57
Deduct Medical Expenses for Dependents . . . . . . . 54
TIP 58
Deduct Charitable Driving Mileage . . . . . . . . . 55
TIP 59
Use That Dependent Care Account with Your Flexible Spending Account (FSA) . . . . . . . . . . 55
TIP 60
Beef Up Your Health Savings Account (HSA)-It's a Triple Tax Advantage Tool . . . . . . . . . . . 55
TIP 61
Take Advantage of the Newborn Savings Account (One Big Beautiful Bill Act Update) . . . . .. . 56
Tip 62
Save for College (and Way More) with a 529 Plan . . . . . . . 56
TIP 63
Use 529 Funds for Student Loan Repayment . . . . . . . 56
TIP 64
Put Your Kids on the Payroll . . . . . . . . . 57
TIP 65
Fund a Roth IRA for Your Child-The Ultimate Head Start . . . . . . . . . . 57
TIP 66
Use the Annual Gift Tax Exclusion . . . . . . . . . . 57
TIP 67
Understand the "Kiddie Tax" Rule . . . . . . . . . . . . 58
TIP 68
File as Head of Household (HOH) if You Qualify . . . . . . . 58
TIP 69
Check for Qualifying Widow(er) Status . . . . . . . . . 58
CHAPTER FIVE The Shelter Strategy: Maximizing Your Home as a Tax Shield Under the OBBBA . 61
TIP 70
Exploit the Expanded SALT Deduction (OBBBA Update) 62
TIP 71
Deduct Mortgage Interest . . . .. . . . . 62
TIP 72
Don't Forget to Use the $1 Million Limit on Grandfathered Loans . . . . . . . . . . 62
TIP 73
Use HELOC Interest for Home Improvement Only . . . . . 63
TIP 74
Deduct Property Taxes Paid . . . . . . . . . . . 63
TIP 75
Deduct Private Mortgage Insurance (PMI) Premiums Again (Starting 2026) . . . . . . . . . 63
TIP 76
Deduct Mortgage Points on Purchase . . . . . . . . . . . . 64
TIP 77
Deduct Property Taxes Paid at Closing . . . . . .. . . . . . 64
TIP 78
Amortize Refinance Points over the Loan Life . . . . . . . . . . 64
TIP 79
Fully Deduct Prior Refi Points on Sale/Payoff . . . . . . . . . . 65
TIP 80
Add Most Closing Costs to Your Home's Basis . . . . . . . . . . 65
TIP 81
Deduct Interest Paid Before Closing . . . . . . . . 65
TIP 82
Deduct EV Charger Installation Costs (Alternative Fuel Refueling Property Credit) . . . . . . . 65
TIP 83
Maximize the Home Sale Exclusion to Minimize Your Capital Gains at Sale . . . . . . . . . 66
TIP 84
Claim a Partial Home Sale Exclusion . . . . . . . . . . 67
TIP 85
Keep Receipts to Increase Your Home's "Basis" . . . . . . . . . . 67
TIP 86
Deduct Medically Necessary Home Improvements (Itemized Deduction) . . . . . . . . . . 68
TIP 87
Convert a Rental to a Primary Residence (for Exclusion) . . 68
CHAPTER SIX The Rental Playbook: Tax Hacks to Turn Your Property into a Wealth-Building Machine . . 71
TIP 88
Use the 14-Day Rental Loophole (IRC ? 280A) . . . . . . . . . 72
TIP 89
Deduct All "Ordinary and Necessary" Expenses (IRC ? 162) . . . . . . . . . . 72
TIP 90
Use Schedule C for Active Airbnb Hosting (IRC ? 1402) . 73
TIP 91
Use Schedule E for Long-Term Rentals (IRC ? 469) . . . . . 73
TIP 92
Separate Taxes for Business Use (IRC ? 164) . . . . . . . . . . . 74
TIP 93
Build Wealth Using Depreciation: The "Phantom Deduction" (IRC ? 167) . . . .. . . . . 74
TIP 94
Deduct Costs of Attracting Guests (IRC ? 162) . . . . . . . . . 75
TIP 95
Deduct Travel Expenses for Rental Business (IRC ? 162) . . 75
TIP 96
Move Personal Home Deductions to Your Rental (IRC ? 280A) . . . . . . . . 76
TIP 97
Account for Escrow Taxes on HUD-1 (IRC ? 164) . . . . . . 77
TIP 98
Issue Form 1099-MISC for Service Providers (IRC ? 6041) . . . . . . . . . 77
TIP 99
But-You Can Avoid Issuing 1099-MISC with Credit Card Payments (IRC ? 6050W) . . . . . . . . 78
TIP 100
Deduct Interest on Time-Shares (IRC ? 163) . . . . . . . . . . . 79
TIP 101
Depreciate Qualified Improvements (IRC ? 168) . . . . . . . . 79
TIP 102
Deduct Interest to Private Lenders (IRC ? 6050H) . . . . . . 80
TIP 103
Prove Your Profit Motive (IRC ? 183) . . . . . . . . . . . . . . . . 80
TIP 104
Understand Local Hotel/Lodging Taxes (State/Local Law) . . 81
TIP 105
Deposit Refinance Funds into a Business Account (IRC ? 163) . . . . . . . 81
TIP 106
Report Unpaid Interest from Loans (IRC ? 446) . . . . . . . . 82
TIP 107
Understand Passive Activity Loss Limitations (IRC ? 469) . . 82
CHAPTER SEVEN The Strategic Giver: How to Donate Like a Philanthropist and Save Like a Pro . . . 85
TIP 108
Itemize to Deduct (Still the Gatekeeper) . . . . . . . 85
TIP 109
Use the "Bunching" Strategy . . . . . . 86
TIP 110
Verify the Charity's Status . . . . . . . . . 86
TIP 111
Keep Proper Documentation . . . . . . 86
TIP 112
Cash Donations: The Simplest and Cleanest Charitable Deduction . . . . . . 87
TIP 113
Clothing and Household Goods: Condition and Valuation Matter . . . . . . . . . 88
TIP 114
Vehicle Donations: Special Rules, Lower Expectations . . . . 89
TIP 115
Deduct Only the Net Gift . . . . . . . 90
TIP 116
Don't Donate "Losers" . . . . . . . . 90
TIP 117
Donate "Winners" (Appreciated Stock) . . . . . . . . . . 90
TIP 118
Understand the AGI Deduction Limits . . . . . . 91
TIP 119
Carry Forward Excess Gifts . . . . . . . . 91
TIP 120
Use a Qualified Charitable Distribution (QCD) . . . . . . 91
TIP 121
The Power of Donor-Advised Funds (DAFs) . . . . . 92
TIP 122
Charitable Remainder Trusts (CRTs) . . . .. . . . . . 94
TIP 123
CRAT Vs. CRUT: Two Ways a CRT Can Pay You . . . . . . . 95
CHAPTER EIGHT The Hustle Shield: Self-Employed Tax Strategies to Protect Your Profits . . . . 99
TIP 124
Deduct Business Meals at 50% . . . . . . . . . . 100
TIP 125
Separate Meal Costs from Entertainment . . . . . . . . . . 100
TIP 126
Deduct Meals for Transportation Workers at 80% . . . . . . 100
TIP 127
Deduct Business Mileage (Standard Rate) . . . . . . . . . 101
TIP 128
Deduct Parking and Tolls Separately . . . . . . . 102
TIP 129
Deduct Business Taxes Without a Cap . . . . . . . 102
TIP 130
Deduct All Ordinary and Necessary Expenses . . . . . . . . . 102
TIP 131
Deduct Business Travel Expenses . . . . . . . . . . 103
TIP 132
Deduct Employee Safety Costs . . . . . . . . . . . . 103
TIP 133
Deduct a Portion of the Self-Employment Tax . . . . . . . . . 103
TIP 134
Use the Optional Method for Social Security Credits . . . . 104
TIP 135
Claim the 20% Qualified Business Income (QBI) Deduction . . . . . . . . . . 104
TIP 136
Understand the MAGI Limits for the QBI Deduction . . . 105
TIP 137
Consider Becoming a C Corporation (C Corp) . . . . . . . . 105
TIP 138
Pay Yourself a Reasonable Salary (S Corporation Strategy) 106
TIP 139
Use the Cash Method of Accounting . . . . . . . . . 106
Tip 140
Maximize Section 179 Expensing . . . . . . . . . 107
TIP 141
Include Used Property for Bonus Depreciation . . . . . . . . 107
TIP 142
Consider an Office-in-Home Deduction . . . . . . . . . . . 108
TIP 143
Take Advantage of the De Minimis Safe Harbor (DMSH) Rule . . . . . . . . . . 108
TIP 144
You Can't Have Access to an Employer Plan . . . . . . . . . . 110
TIP 145
Your Deduction Is Limited to Your Earned Income . . . . . 110
CHAPTER NINE The Investor's Edge: Mastering Capital Gains, Crypto, and the Stealth "NIIT" Tax . . . . 111
TIP 146
Try to Hold Investments Long Term . . . . . . . . . . 112
TIP 147
Practice Tax-Loss Harvesting . . . . . . . . . . 113
Tip 148
Manage Your Tax Bracket for Capital Gains . . . . . . 114
TIP 149
Donate Appreciated Assets to Charity . . . . . . . . . . . 114
TIP 150
Follow the Wash Sale Rule (IRC ?1091) . . . . . . . . . . . . . 115
TIP 151
Use the Crypto Wash Sale Loophole-While It Lasts . . . . 116
TIP 152
Defer Tax on Mining and Staking . . . . . . . . . . . . 116
TIP 153
Take Advantage of the De Minimis Exemption-If It Passes . . . . . . . . . 117
TIP 154
Try to Hold Crypto for over a Year . . . . . . . . 117
CHAPTER TEN Retirement and Wealth: Mandatory Roth and Long-Term Savings . . . . . . . . . . 119
TIP 155
Maximize Contributions to Retirement Plans . . . . . . . . . 119
TIP 156
Contribute to a Roth IRA-If You Can . . . . . . . . . 121
TIP 157
Take Advantage of the Backdoor Roth . . . . . . . . 122
TIP 158
Prioritize Roth Accounts for the Young'uns . . . . . . . . 122
TIP 159
Avoid IRA Early Withdrawal Penalties . . . . . . . . . 123
TIP 160
Repay 401(k) Loans When You Leave a Job . . . . . . . . . 123
TIP 161
Consider a Roth Conversion in Low-Income Years . . . . . 123
TIP 162
Use IRA Funds for Charitable Giving (Qualified Charitable Distributions) . . . . . . . . . . . 124
TIP 163
Take Advantage of Higher Estate and Gift Tax Exclusions 124
TIP 164
Lower Your MAGI with Smart Contributions . . . . . . . . . 126
TIP 165
Use Roth Accounts Strategically . . . . . . . . . . . 126
TIP 166
Use Tax-Loss Harvesting . . . . . . . . . . . 127
TIP 167
Consider Municipal Bonds . . . . . . . . . 127
TIP 168
Don't Deduct Investment Fees or Tax Prep Costs . . . . . . . 129
TIP 169
Avoid Paying IRA Fees Out of Pocket . . . . . . . . . . 129
TIP 170
Same with Those Management Fees for Private Funds . . . 130
TIP 171
Don't Miss Rollover Deadlines . . . . . . . . . . 130
TIP 172
And Finally, a Roth Conversion Reminder . . . . . . . . . . . . 130
CHAPTER ELEVEN Triple Threat: Turning Your Health Savings Account into a Retirement Powerhouse .131
Tip 173
The Power of the Triple Tax Advantage of Health Savings Accounts . . . . . . . . . . 131
CHAPTER TWELVE The Fast Lane Mastering the Road Rules for Maximum Auto Deductions . . 135
TIP 174
Start with Total Miles-No Fake Reverse-Odometer Tricks . . 136
TIP 175
Log Business Trips Like You're Planning the Perfect Skip Day . . . . . . . 136
TIP 176
Standard Mileage Vs. Actual Expenses-You Get to Choose . . . . . . . . . 136
TIP 177
Checklist to Pick a Method . . . . . . . . 137
TIP 178
Luxury Car Depreciation Has Limits-Apologies to the Ferrari Owners . . . . . . . 138
TIP 179
Want a Big Deduction? Think SUV, Not Ferrari . . . . . . . 139
TIP 180
A Home Office Turns Every Trip into a Business Trip . . . 139
TIP 181
Rideshare Drivers Are Businesses-Even if It's a Side Gig . . 140
TIP 182
Yes, Even Cash Tips Count . . . . . . 140
TIP 183
Advertising Wrap? You've Turned Your Car into a Business Asset . . . . . . . . . 141
TIP 184
Parking and Tolls-The Little Deductions That Add Up . 141
TIP 185
Charitable Mileage-Doing Good Still Gets 14 Cents per Mile . . . . . . . . . 142
TIP 186
Charitable Parking and Tolls-Also Deductible . . . . . . . . 142
TIP 187
Medical Mileage. Sometimes Necessary, Sometimes Deductible . . . . . . 143
TIP 188
Moving Expenses? Nope. . . . . . . . . 143
TIP 189
Standard Mileage Includes Depreciation-Don't Forget This . . . . . . . . 143
TIP 190
Personal Property Taxes May Be Deductible-If They Qualify . . . . . . . 144
TIP 191
Buying Vs. Leasing? Run the Numbers . . . . . . . . . 144
TIP 192
Employer Reimbursements Mean No Double Dipping . . 144
CHAPTER THIRTEEN Wait ... You Tried to Deduct What?: Debunking the Wildest Tax Myths in the Book 147
TIP 193
"My Dog Is My Security System-So He's a Business Expense." . . . . . . . . 148
TIP 194
"I Can Deduct My Wedding Because I Networked There." . . . . . . . . . 148
TIP 195
"My Vacation Was a Business Trip Because I Talked About Work." . . . . . . . . . . . 149
TIP 196
"I Bought Clothes for Work, So Therefore I Can Write Them Off." . . . . . . . . . 149
TIP 197
"I Can Write Off My Kids Because They Help Me on TikTok." . . . . . . . . . 149
TIP 198
"My Boat Is for Client Entertainment." . . . . . . . . . . . 150
TIP 199
"I Can Deduct My Divorce Attorney. It's My Future Financial Planning!" . . . . . . . 150
TIP 200
"I Can Write Off My House Because I Host Friends Who Talk About Business." . . . . . . . . 151
TIP 201
"My Gym Membership Is a Health Deduction." . . . . . . . 151
TIP 202
"I Can Write Off My Dating App Subscriptions. They're Client Research." . . . . . . . . 152
TIP 203
"My Tattoo Is Advertising. It Has My Company Logo." . . 152
TIP 204
"My Pool Is a Medical Expense Because It Reduces My Stress." . . . . . . . . . 152
TIP 205
"I Lost Money on Crypto, so I Don't Need to Report It." . . . . . . . 153
TIP 206
"The IRS Doesn't Care About Side Cash." . . . . . . . . 153
TIP 207
"My Vacation Rental Losses Don't Matter Because It's Just a Hobby." . . . . . . . 154
TIP 208
"I Don't Need Receipts. The IRS Trusts Me." . . . . . . . . . . 154
TIP 209
"If I Owe Less Than $1,000, They Won't Care." . . . . . . . . 154
TIP 210
"I Don't Have to File if I Didn't Make Much Money." . . . 155
TIP 211
"If I Get Audited, I'll Just Say My Accountant Did It." . . 155
TIP 212
"The IRS Won't Notice. I'm Too Small." . . . . . . . . . . . . . 156
CHAPTER FOURTEEN The Great Extension: Mastering April Deadline & Uncle Sam's Good Side ...157
TIP 213
File Electronically. It's Faster, Safer, and Smarter . . . . . . . . 158
TIP 214
Uncle Sam Needs to Hear from You by April 15 . . . . . . . 158
TIP 215
Even if You Can't Pay Your Tax Bill-File Anyway! . . . . . 159
TIP 216
Now, Even if You Extend, You Still Have to Pay What You Owe . . . . . . . 159
TIP 217
If You Owe, Make Your Payment Online . . . . . . . . . 160
TIP 218
Set Up an IRS Payment Plan if You Can't Pay in Full . . . . 160
TIP 219
Short-Term Payment Extensions-The 180-Day Grace Period . . . . . . 161
TIP 220
Paying with a Credit Card: Good Idea or Bad One? . . . . . 161
TIP 221
Track Your Refund (or Payment) . . . . . . . . . 162
TIP 222
All Refunds Aren't Instant-Even When You E-File . . . . . 162
TIP 223
How to Fix a Mistake: Form 1040-X . . . . . . . . 162
TIP 224
Don't Forget to Amend Your State Return Too . . . . . . . . . 163
TIP 225
The IRS Does Forgive Penalties-Sometimes . . . . . . . . . . 163
TIP 226
How IRS Interest Really Works-And Why the Penalty Adds Up So Fast . . . . . . . . 163
TIP 227
Ignoring IRS Letters Doesn't Make Them Go Away . . . . . 164
TIP 228
Create an IRS Online Account-It's Your Digital Tax Dashboard . . . . . . . . . 164
TIP 229
Get an IRS Identity Protection PIN (IP PIN)-Especially if You've Ever Been Hacked . . . . . . 165
TIP 230
Know What "Injured Spouse" Means . . . . . . . . 166
TIP 231
Same with "Innocent Spouse" . . . . . . . 167
TIP 232
And My Quick Public Service Announcement . . . . . . . . 168
TIP 233
Keep Your Tax Records-But Not Forever . . . . . . . 169
TIP 234
Celebrate Responsibly-And Then Make a Note to Start Earlier Next Year . . . . . . . . 169
CHAPTER FIFTEEN The Goodfellas Guide to the IRS: Surviving an Audit Without Losing Your Cool . . . . . 171
TIP 235
Reporting Round Numbers (aka "The $500 Rule") . . . . . 172
TIP 236
Large Deductions Compared with Your Income . . . . . . . . 172
TIP 237
Unreported 1099 Income . . . . . . . . 172
TIP 238
Claiming 100% Business Use of a Vehicle . . . . . . . 173
TIP 239
Excessive Meal and Entertainment Deductions . . . . . . 173
TIP 240
Home Office Abuse . . . . . . . . . 174
TIP 241
Cash-Heavy Businesses . . . . . . . . . . 174
TIP 242
Claiming the Earned Income Tax Credit (EITC) Incorrectly . . . . . . . . 174
TIP 243
Amending Returns Every Year . . . . . . . . . 175
TIP 244
"Hobby" Businesses with Years of Losses . . . . . . . . 175
TIP 245
Don't Panic-An Audit Isn't an Indictment . . . . . . . . . . . 176
TIP 246
Know What Kind of Audit You're Dealing With . . . . . . . 177
TIP 247
Respond Before the Deadline-Or Fuggedaboutit . . . . . . 177
TIP 248
Bring Receipts-Literally . . . . . . . . . . . 177
TIP 249
Get a Professional-Your Consigliere . . . . . . . . . . . 178
TIP 250
Don't Volunteer Extra Information . . . . . . . . . . . . 179
TIP 251
Get Everything in Writing-No Backroom Deals . . . . . . 179
TIP 252
You Can Appeal. Don't Let One Agent Be Judge and Jury . . . . . . . . 179
TIP 253
Fix Whatever Triggered the Audit . . . . . . . . 180
TIP 254
Celebrate the Win-Even if You Owe Money . . . . . . . . . 180
Conclusion . . . . . . . . . . 181
APPENDIX A Recordkeeping That Actually Saves You Money . . . . . . 185
APPENDIX B DIY Versus Hiring a Tax Pro . . . . . . . . 189
APPENDIX C I Need a Tax Pro . . . . . . . . . 193
APPENDIX D Think About State Taxes Before You Move . . . . . . 197
Acknowledgments . . . . . . . . . . . 203
Index . . . . . . . . 205
About the Author . . . . . . . 217
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