Angela's Taxes, LLC, Angela L Wadsworth, CPA

07/07/2026

Marriage means making changes before next filing season

Marriage is an exciting milestone, but it can also affect a couple's tax situation. Here are some simple steps after the wedding that can help make filing next year's tax return easier.

Report a name change
If either person changes their name, it should be reported to the Social Security Administration prior to filing a tax return. The name on the tax return must match Social Security records to avoid processing delays.

Submit a change of address, if needed
If either or both spouses moved to a new home, they should notify their local post office, employers, financial institutions and the IRS of any address change. Taxpayers can officially change their mailing address with the IRS by completing and submitting Form 8822, Change of Address.

Check tax withholding
Marriage may change a couple’s tax responsibilities. Newlyweds should give their employers a new Form W-4, Employee's Withholding Certificate, within 10 days. If both people work, this could move them into a higher tax bracket or they may be affected by the additional Medicare tax. The IRS Tax Withholding Estimator can be used to estimate the amount of federal income tax to withhold from their paychecks now for the taxes they will owe next year.

Review filing status
A taxpayer's marital status as of December 31 determines their tax filing options for the entire year. Married people can choose to file their federal income taxes jointly or separately. While filing jointly is usually more beneficial, it's best to figure the tax both ways to find out which makes the most sense.

Keep tax records together
Combining important tax documents, such as Forms W-2, Forms 1099 and prior-year tax returns, can help make tax filing easier and ensure all income is reported.

Explore tax credits and deductions
Marriage may affect eligibility for certain tax credits and deductions. Couples should review available tax benefits before filing their return.

More information

Topic no. 157, Change your address – How to notify the IRS
Publication 505, Tax Withholding and Estimated Tax

06/27/2026

Thinking about starting a business?
One of the most important decisions you’ll make is choosing the right business structure. Whether you’re considering a sole proprietorship, partnership, corporation, S corporation or limited liability company (LLC), each option comes with different tax filing requirements and legal considerations.
Start your business the right way with resources from the : https://ow.ly/5N4l50Z7MAN

06/27/2026

06/26/2026

Mid-year is the perfect time for a quick tax check

It’s halfway through the year, which is a great time for taxpayers to do a quick check to make sure they’re on a smooth track to next filing season. Here are some tips:

Keep good tax records. Taxpayers should keep all important tax records in one place. They can use electronic recordkeeping software or clearly labeled paper folders and add documents as they receive them. Organized records make tax return preparation easier and may help taxpayers identify deductions or credits they might otherwise miss.

Identify filing status. A taxpayer’s filing status affects their tax requirements, deductions, credits, and tax liability. Life changes such as marriage, divorce, birth, or death may affect filing status and eligibility for certain tax benefits. Taxpayers can use the IRS’s Interactive Tax Assistant, What is my filing status? to get help choosing the best one for their tax situation.

Understand adjusted gross income. AGI is income from all sources minus any adjustments. A higher AGI generally means a higher tax rate. Tax planning may help lower AGI and reduce taxes owed.

Check withholding. Taxpayers need to pay their tax as they receive their income, and they do this through withholding. The IRS Tax Withholding Estimator is a free, easy-to-use tool that helps workers and retirees estimate the amount of federal income tax to withhold from their paychecks now for the taxes they will owe next year.
The estimator now reflects the changes to credits and deductions under the One, Big, Beautiful Bill. This includes the deductions for tips, overtime, car loan interest and enhanced deduction for seniors. It also accounts for updates tied to family-related credits, homeownership, and charitable giving.

Make address and name changes. Taxpayers should promptly report address changes to the USPS, employers, and the IRS using Form 8822, Change of Address. They should also report name changes to the Social Security Administration. Keeping this information current can make filing a tax return easier.

Save for retirement. Saving for retirement can also lower a taxpayer's AGI. Certain contributions to a retirement plan at work and to a traditional IRA may also reduce taxable income.

06/23/2026

Understanding what the right to challenge the IRS’s position and be heard means

Every taxpayer has certain rights when working with the IRS. These 10 fundamental rights are collectively known as the Taxpayer Bill of Rights. Let’s get a better understanding of what the right to challenge the IRS's position and be heard means.

Taxpayers have the right to:

Raise objections and to have them considered timely.
Provide additional documentation to the IRS in response to formal or proposed actions and have it considered promptly and fairly.
Receive a response if the IRS does not agree with their position.
What taxpayers can expect
In some cases, the IRS will notify a taxpayer that their tax return has a math or clerical error. If this happens, the taxpayer:

Has 60 days to tell the IRS they disagree.
Should provide copies of any records that may help correct the error.
May call the number listed on the letter or bill for assistance.
Can expect the agency to make the necessary adjustment to their account and send a correction if the IRS agrees with the taxpayer's position.
If the IRS does not agree with the taxpayer's position:

The agency will send a notice proposing a tax adjustment.
This notice provides the taxpayer with a right to challenge the proposed adjustment in U.S. Tax Court before paying it.
If the taxpayer chooses to do this, they must file a petition within 90 days of the date of the notice, or 150 days if it is addressed outside the United States.
Taxpayers can submit documentation and raise objections during an examination or audit. If the IRS does not agree with the taxpayer's position, the agency issues a notice explaining why it is increasing the tax. Prior to paying the tax, the taxpayer has the right to petition the U.S. Tax Court and challenge the agency's decision.

In some circumstances, the IRS must provide a taxpayer with an opportunity to have a hearing with the Independent Office of Appeals before taking enforcement actions to collect tax debt. These actions can include levying the taxpayer's bank account or other property, or filing a notice of federal tax lien in the appropriate state filing location. If the taxpayer disagrees with the Appeals decision, they can petition the U.S. Tax Court.

06/18/2026

Put a plan in place for potential disasters

Hurricane season officially started at the beginning of the month, but they aren’t the only type of disaster that can occur. Taxpayers are encouraged to take steps now to ensure they’re prepared in case they are impacted by a disaster or emergency.

Review and update emergency preparedness plan annually
Taxpayers should review their emergency preparedness plan, at least annually. Ready.gov has resources and checklists to help people put together their emergency preparedness plan.

Create electronic copies of documents
Taxpayers should keep important documents and storage devices in a safe place. If original documents are available only on paper, taxpayers should consider converting them to electronic versions and storing them on a USB flash drive or in the cloud. Many financial institutions provide statements electronically. All taxpayers are encouraged to create an IRS Individual Account. They can access online transcripts, notices, and other tax information.

Document valuables
Take pictures or video of valuables before disaster strikes. It makes it easier to claim insurance and tax benefits. IRS.gov has a disaster loss workbook that can help taxpayers compile a room-by-room list of belongings.

Understand tax relief available for disaster situations

Information on disaster assistance and emergency relief for individuals and businesses disaster assistance and emergency relief for individuals and businesses is available at IRS.gov. Taxpayers should also review Publication 547, Casualties, Disasters and Thefts.
Taxpayers who live in a federally declared disaster area can visit Around the nation on IRS.gov and click on their state to review the available disaster tax relief. Those who live in designated areas for disaster relief receive automatic filing and payment postponements for many currently due tax returns and don't need to contact the agency to get relief.
Taxpayers and practitioners who live in a federally declared disaster area with disaster-related questions can call the IRS Special Services Hotline at 866-562-5227 to speak with an IRS specialist.

06/09/2026

More than half the U.S. States signed up to participate in the federal scholarship tax credit program enacted under the One, Big, Beautiful Bill

IR-2026-76, June 8, 2026

WASHINGTON — The Internal Revenue Service announced that 27 states have elected to participate in the Federal Scholarship Tax Credit (FSTC) program, which enables eligible taxpayers to claim a federal tax credit for qualified contributions to Scholarship Granting Organizations (SGOs) providing scholarships for qualified elementary and secondary education expenses.

For taxpayers to claim the tax credit of up to $1,700, they must contribute to an SGO located in a state that elects to participate in the FSTC program and submits a list of qualified SGOs. State participation in the program, enacted under the One, Big, Beautiful Bill, is voluntary.

“It’s encouraging to see that 27 states have already signed up to participate in this program that promotes and supports elementary and secondary education,” said IRS Chief Executive Officer Frank J. Bisignano. “We are hopeful that additional states will decide to participate.”

As of early 2026 multiple states have formally opted into the program, including: Alabama, Alaska, Arkansas, Colorado, Florida, Georgia, Idaho, Indiana, Iowa, Louisiana, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, West Virginia, and Wyoming.

The IRS will maintain and update the official list of participating states as they complete the required election and submission process. The most current information is available at Federal Scholarship Tax Credit. Some state websites may not yet reflect their current participation status.

For additional information on Section 25F and the FSTC, visit One Big, Beautiful Bill Provisions on IRS.gov.

06/02/2026

Is that activity just a hobby or a business?

Many people have hobbies - things they enjoy doing in their spare time - and some even make a little extra money from them. However, there’s a difference between a hobby and a business, especially how each is treated when it comes to filing taxes.
Businesses operate to make a profit while hobbies are for pleasure or recreation. Here are some common questions people should ask themselves when deciding if what they’re doing is a hobby or business. No single thing is the deciding factor.

Questions to help taxpayers decide if they have a hobby or business

Is there an intent to make a profit?
If the activity makes a profit, how much is it?
Can they expect to make a future profit from the appreciation of the assets used in the activity?
Do they depend on income from the activity for their livelihood?
Are any losses due to circumstances beyond their control or are the losses normal for the startup phase of their type of business?
Are operations adjusted to improve profitability?
Is the activity carried out like a business with complete and accurate books and records kept?
Do the taxpayers and their advisors have the knowledge needed to carry out the activity as a successful business?
Taxpayers should review all the factors to make the best decision. Regardless of the decision, if they’re paid through payment apps for goods and services during the year, they may receive an IRS Form 1099-K for those transactions. These payments are taxable income and must be reported on federal tax returns.
Additionally, if they received payment in the form of digital assets, they may also get a Form 1099-DA. Whether taxpayers have a hobby or run a business, good recordkeeping throughout the year will help when they file taxes.