Kelly’s Tax Service

09/01/2026

08/29/2026

💰 Tax Tip Saturday: Child & Other Dependent Care Credit

Paying someone to care for your **child or another qualifying person** while you work or look for work? You may qualify for the **Child and Dependent Care Credit**.

For 2026, eligible care expenses can generally be up to **$3,000 for one qualifying person** or **$6,000 for two or more**, with the credit percentage depending on income.

**Tax Tip:** Keep your childcare provider’s **name, address, Tax ID/SSN, payment receipts, and records of dates/amounts paid**. You’ll generally need provider information when filing **Form 2441**.

📌 This credit can also apply to care for a **spouse or dependent who is physically or mentally incapable of self-care**, when the requirements are met.

**Kelly’s Tax Service**
*Helping you understand the credits you may deserve.*

08/24/2026

**💰 Tax Tip Monday: LLC vs. S Corporation**

An **LLC** is a legal business structure that helps protect your personal assets. By default, a single-member LLC is generally taxed like a sole proprietorship.

An **S Corporation** is a **tax election**, not a business type. Eligible business owners can elect S Corp taxation, pay themselves a reasonable salary, and potentially reduce self-employment taxes on remaining profits.

📌 **Quick Tip:** An LLC can elect to be taxed as an S Corporation—so you can have **LLC legal protection + S Corp tax treatment**.

💚 **Kelly’s Tax Service**
*Helping you understand your business and your taxes.*

08/17/2026

💰 **MONEY-SAVING MONDAY TAX TIP**

**Don’t wait until tax season to find out you didn’t pay enough taxes!**

Now is a great time for taxpayers to review their **federal withholding and estimated tax payments**. The IRS follows a pay-as-you-go system, so falling behind during the year can potentially lead to an unexpected balance or underpayment penalty.

📌 **Self-employed or have untaxed income?** The next quarterly estimated tax payment is generally due **September 15, 2026**.

💡 **Employee?** Review your latest paystub and consider using the IRS Tax Withholding Estimator to see whether your withholding needs an adjustment.

**A tax checkup today could prevent a tax surprise tomorrow!**

📞 Contact **Kelly’s Tax Service** for your mid-year tax checkup.

08/15/2026

Her Mom Was the winner for the HP Chromebook

08/15/2026

Back to School Drive

08/14/2026

💰 **Tax Tip Friday: High Earners — Don’t Wait Until Tax Season!**

High income can mean a bigger tax bill—but smart planning can help you keep more of what you earn.

If you’re a high-income taxpayer, consider these strategies:

✅ **Maximize retirement contributions** — Take advantage of 401(k), 403(b), SEP IRA, or other eligible retirement plans.

✅ **Review estimated tax payments** — Bonuses, investments, business income, and side income can create an unexpected balance due.

✅ **Use tax-loss harvesting strategically** — Investment losses may help offset capital gains, subject to tax rules.

✅ **Plan charitable giving** — Donating appreciated assets or using a donor-advised fund may provide tax benefits when structured correctly.

✅ **Watch the Net Investment Income Tax (NIIT)** — Certain higher-income taxpayers may owe an additional **3.8% tax** on net investment income.

✅ **Plan before December 31** — Many tax-saving opportunities disappear once the year closes.

📌 **High earners shouldn’t just prepare for taxes—they should plan for taxes.**

Contact **Kelly’s Tax Service** to discuss proactive tax-planning strategies for your situation.

*Tax planning strategies depend on individual circumstances. Consult a qualified tax professional before making tax or investment decisions.*

08/11/2026

💰 **TAX TIP TUESDAY: EARLY DISTRIBUTIONS** 💰

Thinking about taking money out of your retirement account early? Know the tax consequences before you withdraw! ⚠️

If you take a distribution from certain retirement accounts **before age 59½**, the taxable portion may be subject to regular income tax **plus an additional 10% tax**.

💡 **But there are exceptions!** Depending on the type of retirement plan and your circumstances, the additional 10% tax may not apply.

Examples can include:
✅ Certain unreimbursed medical expenses
✅ Total and permanent disability
✅ Certain distributions to beneficiaries after death
✅ Qualified birth or adoption distributions
✅ Certain emergency personal expense distributions
✅ Other IRS-approved exceptions

📌 **Important:** An exception to the 10% additional tax does **not necessarily mean the distribution is income-tax free.**

Before withdrawing from your retirement account, talk with a tax professional about how the distribution could affect your tax return.

📲 **Kelly’s Tax Service**
Plan ahead today so you’re not surprised at tax time!

08/10/2026

💚 **TAX TIP MONDAY — EXTENSION EDITION** 💚

Filed a tax extension? Don’t let October sneak up on you! ⏰

📌 For most individual taxpayers who properly requested an extension, the federal filing deadline is **October 15, 2026**.

Remember: **An extension gives you more time to FILE — not more time to PAY.** Taxes owed were generally still due by April 15, so waiting longer to pay can mean additional penalties and interest.

✅ Start gathering missing tax documents now
✅ Organize business income and expenses
✅ Review your W-2s, 1099s, K-1s and deductions
✅ Don’t wait until October to contact your tax professional
✅ If you owe, consider paying as much as possible now

💡 **KTS Reminder:** An extension is extra preparation time—not extra procrastination time!

📅 **October 15, 2026 will be here before you know it.**

📲 Contact **Kelly’s Tax Service** to get your extended return completed before the deadline.