Exacta Bookkeeping & Tax Services

02/25/2026

"No Tax on Overtime" Deduction – Did You Know?

In order to claim the deduction, you must be an FLSA overtime-eligible employee, where FLSA stands for the Fair Labor Standards Act. Many full-time employees fit this category but some do not, so if you are unsure about your FLSA designation, check with your employer.

You may only claim the "No Tax on Overtime" deduction if you have a Social Security number (SSN) valid for U.S. employment. If you are married, you must file a joint tax return with your spouse. Note that the deduction applies only to "bonus" overtime pay above your normal salary or wage rate. For example, if your normal pay rate is $20/hour but you get paid $30/hour for overtime work ("time and a half"), then at most $10/hour of your overtime pay will be deductible. Your 2025 W-2 form might not clearly show your qualifying overtime pay, so you may need to obtain the information another way, such as logging into a portal created by your employer.

You do not need to itemize deductions in order to deduct overtime pay. The maximum deduction amount is $12,500, or $25,000 for joint filers if both spouses have qualifying overtime pay and valid SSNs. The deduction amount decreases for people with modified adjusted gross incomes above $150,000 (or $300,000 for joint filers). A tax professional can help you determine whether you qualify to deduct overtime, and if so, help you properly figure your deduction amount.

02/23/2026

Changing Life Circumstances Can Affect Your Taxes – Did You Know?

When a momentous life event like a marriage or the birth of a child occurs, taxes are probably the furthest thing from your mind. However, once the excitement of the moment settles down, it is important to perform a quick tax checkup to avoid an unpleasant IRS surprise. Here is a checklist of some of the most common life changes that may affect your taxes:

Change of Name:
Your name on your tax return must match the name on file for you with the Social Security Administration (SSA). Therefore, if your name changes due to marriage, divorce, or for any other reason, it is important to request a new Social Security card, which can be done at ssa.gov.

Change of Filing Status:
Married couples may choose to file either jointly or separately, and this choice can affect both tax rates and eligibility for certain deductions and credits. If your marital status changes during the year, or you and your spouse decide to change your filing method, it is a good idea to use the IRS Withholding Estimator tool to determine whether a change in your paycheck withholding amount is needed.

Change of Address:
From time to time, the IRS may need to contact you about your return, refund, or other matters. If you move during the year, inform the IRS by filing Form 8822, Change of Address, to ensure that you do not miss any important communications.

Change in Number or Ages of Dependents:
If your family grows this year due to a birth or adoption, you may be eligible for additional tax deductions and credits. Conversely, your eligibility for certain credits might change as your children grow older.

Some of the tax implications of these and other life changes can get complicated. A professional tax advisor can help you evaluate these impacts, and if necessary, take action to stay on track with your tax payments and qualify for the deductions or credits available to you.

02/19/2026

Digital Asset Transaction Reporting and New IRS Form 1099-DA

A wide range of digital asset transactions such as buying, selling, trading, exchanging, or using crypto and other digital assets must be reported on tax returns. In particular, you may get a Form 1099-DA if you worked with a U.S.-based broker to sell or trade crypto or other digital assets, or used those assets to pay broker transaction fees. The form will show any potentially taxable gain from the transaction, and may also show your basis, a critical figure to know for tax purposes. In most cases, though, you will need to figure your basis separately.

If you believe that a Form 1099-DA you receive is incorrect or should not have been issued, contact the sender promptly to request that the form be replaced or voided. A tax professional can help you interpret 1099-DA forms and properly report the related transactions, and also help with basis calculations to ensure that you do not overpay in tax.

02/17/2026

Filing Season Scams - Did You Know?

Tax filing season unfortunately brings with it a spike in activities by scammers looking to steal people's identities, money or both. The IRS recently warned all Americans to stay alert for fraudulent email or text messages that claim to come from the IRS or a tax service company. These messages may include requests for sensitive information like a Social Security number (SSN), or links to impostor websites created to harvest personal data or trick people into sending money. Many of these scams specifically target seniors. If you receive a suspicious message about tax season, delete it promptly, and do not reply or click on any links.

Other scammers post messages or videos on social media about made-up tax deductions or credits that the IRS is supposedly hiding from the public. They may use these claims to lure people into paying for fraudulent tax preparation services. Or they may just want to sow chaos, by persuading people to file false returns and incur IRS penalties.

One of the hardest scams to spot is false return filing, where a person files bogus tax returns in other people's names, in an attempt to steal IRS refunds. Victims of this scam may face lengthy processing delays for their legitimate returns, and therefore have to wait months or even years for their refunds. You can protect yourself by obtaining an IP PIN from the IRS, which is a unique identifying number that prevents anyone else from submitting a return in your name.

Apply for an IP PIN: https://www.irs.gov/identity-theft-fraud-scams/get-an-identity-protection-pin

02/14/2026

02/11/2026

02/11/2026

Adoption Tax Credit – Did You Know?

The Adoption Tax Credit helps parents recoup costs necessary to adopt a child. Thanks to rule changes implemented under the One Big Beautiful Bill Act (OBBBA), parents who adopted a child in 2025 may qualify for enhanced tax benefits. Qualifying adoptive parents may claim a credit of up to $17,280 per eligible child for domestic, international, private or foster care adoptions. Expenses covered by the credit may include adoption fees, home studies, reasonable travel costs to complete the adoption, and court and legal fees.

Beginning with tax year 2025, up to $5,000 of the Adoption Tax Credit may be refundable. Therefore, if your credit is greater than the amount of tax you owe, you may receive up to $5,000 of the excess credit as a tax refund. Any remaining excess credit may typically be carried forward for up to five years. However, carryovers cannot be used to generate a tax refund.

For 2025, you can claim the full credit if your modified adjusted gross income (MAGI) is $259,190 or less. The credit decreases gradually as your MAGI rises from $259,191 to $299,189, and it is no longer available if your MAGI is $299,190 or higher.

To qualify for the Adoption Tax Credit, an adopted child generally must be younger than 18 years old or have special needs, and cannot be your spouse's child. A tax professional can help you determine whether you qualify for the credit, and if so, help you take full advantage of new benefits available under the OBBBA.

02/09/2026

IRS 2026 IP PIN - Did You Know?

The IRS encourages everyone to get an identity protection number (IP PIN) for the 2026 tax filing season. An IP PIN is a unique code that you include on your tax return and other IRS forms that you file during a given year. Using this code prevents scammers from submitting fraudulent tax documents in your name, in an attempt to steal your refund or identity.

The easiest way to obtain an IP PIN is to create an online IRS account (link below). You can also request one by mail by filing IRS Form 15227. Note that an IP PIN only lasts for one calendar year, so even if you had one in 2025, you will need a new one this year. Once you receive your 2026 IP PIN, make sure to include it on your 2025 tax return, so that the IRS will accept the return and reject any fakes. A tax professional can help you file your return electronically with your IP PIN properly entered, to ensure the fastest possible processing.

Open an IRS online account: https://www.irs.gov/identity-theft-fraud-scams/get-an-identity-protection-pin

02/07/2026

02/07/2026

If you claimed the Earned Income Tax Credit or the Additional Child Tax Credit and are wondering where your refund is, don’t panic. You can expect to get your refund by March 3 if:

• You filed your return online
• You chose to get your refund by direct deposit
• We found no issues with your return

However, some taxpayers may see their refunds a few days earlier. Check Where’s My Refund for your personalized refund date. Visit here for more info: www.irs.gov/refundtiming

02/06/2026

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