The Accounting Guys - Blog #Taxes

What Will Your Taxes Look Like in 2026?

Wed, 16 Jul 2025 08:56:07 -0700

Earlier this month, Trump’s “big, beautiful bill” was approved by Congress and is set to be signed into law by the president on July 18. While that bill addresses numerous topics, one of the topics that most people want to know about is tax law. How will tax rates change under the bill? What will your taxes look like next year, with this bill in place? Here’s what we know about the bill’s tax provisions, and how the changes within it might impact you.

Who Is Getting a Tax Cut?

According to an analysis performed by the Tax Policy Center, the majority of American households should get a tax cut in 2026—about 85% of them, to be exact. Of course, not all of these cuts would be permanent. For example, the bill initiates a new deduction for senior citizens that is only intended to last a few years. So, by 2030, the percentage of homes continuing to see a tax break would be about 70% instead of 85%. More than half of these tax benefits will be given to homes in the top 20% of annual household incomes; these are homes that earn about $217,000 per year or more.

Now, let’s dive a little deeper into just how much of a tax break you might see in 2026. Of course, keep in mind that these are only estimates. The exact percentages saved in each tax bracket are not set in stone, and your final tax bill will be based on far more factors than the provisions in this new bill.

Estimated Tax Savings by Income

While estimates on tax savings vary depending on which analysis you’re looking at, most analysts largely agree that the tax breaks increase with household income. So, let’s start at the top and work our way down:

Over $1.1 million: These earners represent the top 1% of annual incomes, and would see their after-tax income increase by roughly 3.5%.
$460,000 to $1.1 million: This bracket of Americans would see the biggest tax break, with an after-tax income increase of 4.4%, which amounts to about $21,000.
$318,000 to $460,000: Households in this income range would likely see their after-tax income increase by $8,900, or 3.1%.
$217,000 to $318,000: Still considered high-income earners, this group rounds out the top 20% of household incomes. Those in this group can expect a 3.1% increase in after-tax income, or about $8,900 a year.
$50,000 to $217,000: Tax breaks below $217,000 decrease significantly, with most taxpayers in this range seeing between 2.3% and 2.5% more after-tax income, or $3,000 annually.
$34,600 to $50,000: This group, considered “low-income” households, would see after-tax boosts between 1.5% and 1.9%, or around $630 per year.
Under $34,600: The lowest-income households would see the least benefit from the tax breaks, with the bottom 20% of taxpayers seeing their taxes decrease by about $150 a year, or 0.8%.

Other New Tax Cuts

Tax brackets are not the only thing that would change under the “big, beautiful bill.” A number of other tax deductions will start this year—some temporary, some permanent—and will apply on your next tax return. These changes include:

A permanent increase in the child tax credit to $2,200.
A permanent increase of $750 in the standard deduction.
A $6,000 deduction for seniors over 65, which will expire in 2029.
A $25,000 deduction designed to eliminate taxes on tips, which also lasts three years.
A $12,500 deduction to cut taxes on overtime, also lasting through 2028.
An increase in the SALT cap (amount deductible for state and local taxes) from $10,000 to $40,000.

Get Help with Your Tax Planning

We understand that changes to tax law can be stressful and confusing. If you’d like to get a more personalized estimate on how these changes will impact your tax return, we encourage you to reach out to The Accounting Guys. Our professional tax planners in Provo, UT, can help you with adjusting your current tax plan, if needed, and provide you with more information about what you can expect on your next tax return. Contact The Accounting Guys today to schedule a tax planning meeting with an experienced CPA.

Will Layoffs at the IRS Impact Your Tax Return?

Wed, 26 Mar 2025 14:38:35 -0700

Tax season is always hectic for taxpayers, CPAs, and the IRS alike. This year, however, has brought a new flurry of activity on top of the usual busyness that comes with the approaching tax deadline. We’re talking about the recent mass layoffs at the IRS, just one of the federal agencies that Elon Musk’s Department of Government Efficiency (DOGE) has reduced in size recently. If you’re concerned about how the loss of those IRS workers will impact you and your tax return, you’re not alone. While we certainly don’t have all the answers, here’s what tax experts are saying about the potential effects this will have on tax returns and refunds this year.

Who’s Been Laid Off?

At the moment, an estimated 7,000 probationary employees at the IRS have been dismissed, according to the Washington Post.

Will It Impact Your Return?

According to experts, odds are that most taxpayers won’t experience a significant delay in the processing of their return or refund. In fact, the former IRS Commissioner stated that “there should not be a significant impact on current filing season operations,” Time Magazine. Of course, that’s assuming your return is filed (1) electronically, (2) correctly, and (3) fairly early in the season. If you meet these three criteria, your return can be processed by a computer, without the need for an actual staff member to handle it.

Taxpayers whose returns require manual review are more likely to experience a delay. After all, fewer bodies in the buildings mean fewer eyes on paper returns or returns with errors and “red flags” attached to them. If you need to communicate directly with the IRS, you should expect longer wait times, as well as an increased chance of dropped calls.

How Can You Avoid These Issues?

If you’re concerned about your return or refund being delayed—and many of our clients are—there are a few things you can do to reduce the chance of that happening:

1. File Electronically:

2. Double Check Your Work:

3. File as Soon as Possible:

Make tax season stress-free with The Accounting Guys, your trusted Provo tax professionals. We specialize in , ensuring you maximize deductions and receive your refund faster.

Don't let tax delays hold you back - contact us today for expert tax preparation in Provo!

Key Updates For Tax Season 2018: E-Filing Begins January 29th

Wed, 12 Feb 2025 11:12:13 -0700

E-Filing Begins January 29

Your accountant can e-file your taxes as early as January 29th, if you have all your documents in order. This is just a few days away, so if you want to get ahead of the game and get your refund sooner, make sure you have all of your documents submitted to your accountant soon!

Delayed Refunds for Select Tax Credits

If you are claiming the Earned Income Tax Credit and/or the Additional Child Tax Credit, the IRS is delaying refunds on these returns until mid-February. So if you have either of these credits on your tax return, don’t expect your refund to hit your bank account until February 27th at the earliest.

Verification of W-2s for Utah Refunds

Your refund with the State of Utah may be delayed until March 1st if the State cannot verify your W-2 with your employer. So if you’re expecting a refund from Utah, please allow 120 days from the date you filed your return, or until March 1st—whichever is later—for your return to be processed. This is in an effort to protect your identity.

There are numerous factors that can delay your return or refund, so it is always best to submit your paperwork as soon as you possibly can. If you’re ready to file, or have any questions about filing taxes in Provo, please schedule an appointment with one of our experienced CPAs.

5 Tax Tips To Help You For The 2019 Tax Season

Wed, 12 Feb 2025 10:59:02 -0700

1. Check Your Withholdings

The tax reform laws that were implemented for 2018 caused the automatic withholdings on most people’s paychecks to drop. While this likely meant larger paychecks for you throughout the year, it will also impact your taxes. If you’re used to receiving or owing roughly the same amount every year, this will most likely change due to your decreased withholdings; you’ll be refunded less than normal, or you may owe more than you usually do. In some cases, those who typically received a refund may end up owing.

Now is a good time to review your withholdings and compare them to last year, so you aren’t surprised by the change in your tax situation this year. The IRS also has a tool to help you calculate if you’re withholding the proper amount from your paychecks. Use their Paycheck Checkup calculator to find out how much you should withhold from each paycheck; if you need to make adjustments, file a new Form W-4 with your employer.

2. Get an Estimate of Your Tax Liability or Refund

Even if you’re not ready to file just yet, the IRS recommends calculating what your tax liability or refund will be now, so that you can properly prepare for it when you file. The tax reform will likely impact refunds and tax bills significantly, so even a rough estimate can help you to get funds in order to handle a larger tax liability, if necessary.

You should also be aware that anyone claiming the Earned Income Credit or the Additional Child Tax Credit will have their refunds delayed at least until the middle of February. And, with the government shutdown delaying the IRS’s tax season, those delays could last much longer.

3. Renew Your ITIN If Needed

Certain nonresident aliens, resident aliens, and dependents or spouses are assigned an individual taxpayer identification number (ITIN) in place of a Social Security number. Your ITIN plays the same role as an SSN on your tax return; however, unlike an SSN, an ITIN expires. So, if you have an ITIN that might expire before you’re able to file your return, you should submit a renewal application now to avoid any potential complications with the IRS.

4. Look into New Tax Forms

The tax reform laws have also updated some fairly common tax forms. For example, Form 1040 has been updated and shortened to more closely resemble Forms 1040-EZ and 1040A. However, it also now requires additional schedules to attach in certain circumstances. Take a little time to check out the shortened Form 1040 and familiarize yourself with it. This will help you to get a head start and make it less confusing once you’re ready to file.

5. Know Your Resources for Help

Even the IRS is aware that this tax year is going to be more complicated than usual, and there’s bound to be a lot more confusion. However, there are many resources that you can turn to for assistance, including online resources through the IRS website, and the Volunteer Income Tax Assistance program. Do some research and find where you can turn for help when you have questions.

Our team of experienced CPAs is always available to offer you tax help in Provo and answer any questions you might have regarding the reformed tax law, or to assist you with filing your taxes. Contact us today to set up an appointment.

Essential Tax Forms & Documentation For Your Tax Appointment

Wed, 12 Feb 2025 10:07:23 -0700

Income Tax Forms

There are many different types of income tax forms, depending on the type of income you’ve received, and most people receive more than one kind of income throughout the year. Here are some of the most common income tax forms our clients receive. Please bring whatever forms are applicable to you:

W-2 – You will receive this form if you are a registered employee of a business. This form shows your annual wages and the amounts you have had withheld from your checks throughout the year.

1099-MISC – You will receive this form if you are an independent contractor or self-employed. You should receive one of these from every client who has paid you $600 or more during the year.

1099-DIV – You should receive this form if you have received any dividends or other distributions from your investments over the last year.

1099-INT – You will receive this form if you have collected any interest over the course of the year. At the very least, you will likely receive one of these from your financial institution to report the interest you’ve earned from your savings account.

K-1 – You will receive this form if you are a shareholder in a trust, S corporation, or partnership.

If you received any of these income tax forms, please bring them with you. You should also bring documentation for any other sources of income you’ve received throughout the year.

Sale of Stocks

Please bring any information and documentation you have pertaining to any stocks you’ve sold in the last year—particularly the purchase date and the purchase price.

Sale or Purchase of Home

If you’ve purchased or sold a home in the last year, please bring the settlement statements for the sale when you meet with your tax accountant in Provo.

Income and Expenses for Rental Units

If you own any rental properties, you will need to provide detailed documentation for the rents you’ve received, as well as a list of any expenses you’ve paid on the unit. Expenses can include the mortgage for the unit, property taxes, repairs costs, cost of advertising the unit, and so on.

Proof of Medical Expenses

If you’ve had very high medical expenses in the last year (more than 10% of your income), please bring documentation for those expenses to your tax interview. Note that medical expenses that have been reimbursed by your insurance company do not qualify.

Proof of Charitable Contributions

If you have donated cash or items to charity in the last year, please bring documentation to support these contributions. Your donations of both money and items should be itemized and include the date the donation was made, as well as the value of the item donated. Please note that only donations to certified non-profits qualify as a charitable contribution.

Mortgage Interest and Taxes

All homeowners will receive a 1098 form showing the mortgage interest and property taxes that you have paid over the last year. Please bring this to your tax interview.

Tuition and Education Costs

Students should receive a 1098-T tax form, documenting the amount paid in tuition over the last year. Please bring this with you, along with a detailed list of what you paid for books, lab fees, and any other expenses related to your schooling.

Proof of Health Insurance

You will need to provide proof of health insurance coverage for yourself and your dependents when filing your taxes. If you have employer-provided health insurance, your employer should provide you with the proper forms. If you have healthcare through the Obamacare marketplace, you will receive a 1095-A.

SSNs & DOBs

Please be sure to have the Social Security number and date of birth on hand for yourself and all of your dependents. This is especially important for any new dependents you may have, such as a new child or spouse.

Last Year’s Return

If you are a new client to The Accounting Guys, please bring a copy of last year’s tax return when you meet with one of our CPAs in Provo.

Filing Taxes with Business Losses? Here’s What You Need to Know

Fri, 07 Feb 2025 09:02:15 -0700

What You Should Know about Filing Taxes with Business Losses

Here at The Accounting Guys, we specialize in working with business owners. We know the ins and outs of working with businesses’ books and filing their taxes—and we know that facing a year in the red is far from an uncommon occurrence for businesses. But how do you file your taxes when your business has a loss for the year? Here’s some important information you’ll need to know. For further assistance, reach out to our Provo business tax experts to schedule a consultation.

Understanding Net Operating Loss (NOL) Rules

When a business incurs a net loss for the year, it’s possible you could qualify for a net operating loss, or NOL. This can be applied to reduce taxable income in future profitable years. A NOL can be a powerful tool to improve your long-term business finances, but it’s important to understand the rules surrounding this potential tax break.

A NOL occurs when a business’s total deductions exceed its total income during the tax year. This loss can be “rolled over” to offset your future taxable income, helping to lower tax liabilities when you start turning a profit again. NOLs can offset up to 80% of taxable income in future years. This means that, even if your NOL amount is significant, you can’t entirely erase your taxable income if you turn a profit in the future. However, you can reduce it significantly.

Properly Deducting Losses on Your Tax Return

The way your business’s losses are handled on your tax return will vary depending on your company’s business structure. For sole proprietorships, partnerships, and S corporations, the losses pass through to personal tax returns, potentially reducing your personal income tax too.

Sole Proprietorships: This business structure reports income and losses on a Schedule C (Schedule F for farming businesses) of Form 1040. If you have a net loss, it can reduce your total taxable income on your personal return.

Partnerships and S Corporations: These business entities pass losses on to their partners or shareholders, who in turn report them on their personal returns. This can decrease the individual’s taxable income, but the IRS does limit how much loss can be claimed based on at-risk and passive activity rules—more on that below.

Corporations: C corps are separate tax paying entities from their owners, and the business itself files its own tax return. Losses are reported on Form 1120, and impact the corporation’s taxable income. These losses do not impact the personal income taxes but can provide carry forwards for corporate tax savings in your more profitable years.

Understanding At-Risk and Passive Activity Rules

When claiming a net loss on your tax return, you need to ensure you’re complying with IRS rules related to risk levels and activity types. These restrictions limit how much loss you can use to reduce taxable income.

The at-risk rule requires your investment in the business to be genuinely “at risk.” This means you could actually lose it if the business fails. If your investment is protected from personal loss, the deductibility of your losses may be limited.

For business owners not actively involved in daily operations, losses may be considered “passive,” which means they’re only deductible to the extent of your passive income from other sources. On the other hand, if you’re actively participating in your business, such as having a hand in management decisions, you can avoid these restrictions and maximize your deductible losses.

Get Help from a Tax Professional

A tax professional can help ensure you’re taking full advantage of any tax benefits available while remaining compliant with the IRS’s rules. Contact The Accounting Guys today to speak with one of our experienced Provo business tax experts.