Plan ahead for life and financial changes

Consulting your CPA before major changes can help you avoid costly mistakes and uncover valuable planning opportunities. Contact your advisor before:

• Getting married or divorced
• Buying or selling a home
• Starting or selling a business
• Approaching retirement
• Welcoming a new child
• Changing dependent status
• Donating investments or high-value items
• Selling stocks, investments, rental properties, or other assets
• Planning your estate or Social Security strategy
• Making decisions about retirement accounts

Avoid tax surprises from extra income

A second job, freelance project, or side hustle can affect your taxes in unexpected ways.

• Confirm your classification. Ask whether you will be treated as an employee or independent contractor and whether you will receive a W-2 or 1099.
• Review your withholding. Each employer may calculate withholding as though it is your only source of income, leaving you short at tax time.
• Plan for contractor taxes. Taxes are not withheld from 1099 income, and estimated quarterly payments may be necessary.
• Separate your expenses. Keep business and personal spending separate so eligible expenses are easier to identify.

When life or income changes, contact Alloy Silverstein. A quick conversation can help you plan ahead, keep more of what you earn, and avoid costly surprises later.

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Here are four common mistakes and ways to prevent them.

Mistake #1: Withholding too little

Too little withholding can create an unexpected tax bill. Review your withholding after filing each year and submit a new Form W-4 if needed. Revisit it after major income changes, unemployment benefits, or when estimated payments may be required.

Mistake #2: Mishandling retirement withdrawals

Withdrawals from pre-tax accounts such as 401(k)s and IRAs may create taxable income. Use direct rollovers whenever possible and confirm that proper taxes are withheld from any taxable distribution.

Mistake #3: Missing retirement tax benefits

Failing to use tax-deferred retirement plans may mean missing opportunities to reduce taxable income. Review your options and contribute as much as practical, especially when an employer match is available.

Mistake #4: Poor documentation

The IRS may disallow valid deductions without supporting records. Maintain digital and paper files by income and expense categories. Keep mileage logs and documentation for charitable gifts, medical expenses, and childcare costs.

Contact Alloy Silverstein today for help reviewing your tax plan.

More Resources:

• 3 Common Year-End Bookkeeping Mistakes, and How to Avoid Them Before Tax Season [VIDEO]
• Three Common Tax Mistakes [VIDEO]
• Avoid These Common Tax Mistakes

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By using tools such as education savings accounts, pre-tax healthcare funding options, and thoughtful withholding adjustments, families can take a more proactive approach to organizing and planning for these ongoing expenses.

Here are a few key areas to consider when looking at the tax side of raising children.

Planning for Education Costs With 529 Savings Plans

529 education savings plans are a great way to kick off the baby’s savings for future educational costs. These plans offer investments that grow tax-free as long as the funds are used to pay for eligible education expenses (including elementary and secondary tuition). States administer these plans, but that doesn’t mean you are stuck with the plan available in your home state. Feel free to shop around for a plan that works for you. Starting to save early, maximizes the amount of tax-free compound interest you can earn in the 18+ years you have before kids go to college.

Bonus tip for family and friends: Anyone can contribute up to $19,000 to the plan in 2026 for each child! In addition, there is a special provision for 529 plans that allows five years worth of gifts to be contributed at once — a great estate-planning strategy for grandparents.

Using Pre-Tax Accounts to Prepare for Medical Expenses

Having a baby is expensive. So is watching your kids grow up! Fortunately, there are ways to be tax smart in covering the predictable medical and dental expenses. The first thing to do is try to pay for as many out-of-pocket expenses with pre-tax money. Many employers offer tax-advantaged accounts such as a Health Savings Account (HSA) or a Flexible Spending Account (FSA). So check this out and fund these accounts as much as possible. And while it’s more difficult to claim medical expenses as an itemized deduction, it’s impossible to do so if you don’t keep receipts.

Updating Your Withholding as Family Expenses Change

Every year, you need to review your tax withholdings and this is especially important if you have dependents. Remember, the birth of a child brings new tax breaks, including a $2,000 Child Tax Credit, along with the Child and Dependent Care Credit for childcare expenses. These credits can be taken advantage of now by lowering tax withholdings and increasing take-home pay to help cover the cost of diapers and other needs that come with babies and children. On the other side of the coin, these benefits fall away as your kids grow older. The Dependent Care Credit is for children under the age of 13 and the Child Tax Credit is available for kids under the age of 17. So plan accordingly.

Consult with Your CPA During Life’s Changes

Having a kid can be expensive. If you are planning for the financial responsibilities that come with raising children, proactive tax planning can help you stay ahead of changing expenses and make more informed decisions throughout the year.

Schedule a tax review today to make sure you’re getting all the child tax breaks you deserve! Alloy Silverstein’s advisors work with families to help organize tax strategy around education planning, healthcare costs, and overall household tax efficiency. Reach out to our team to discuss your situation and plan ahead with confidence.

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• Third quarter 2026 individual estimated tax payments are due.
• Extension deadline for 2025 S-Corporation and partnership returns.

October 15, 2026

• Filing deadline for extended 2025 individual tax returns and calendar year C-Corporation returns.

During November

• Review your projected 2026 income tax liability and explore year-end planning opportunities. Contact your advisor to schedule a tax planning consultation.

What the IRS is Up to

IRS Mileage Rate Increase Retroactively Takes Effect July 1

The IRS has increased the standard business mileage rate for the second half of 2026. Businesses reimbursing employees for mileage should update their policies, and individuals should maintain accurate mileage records to support deductions or reimbursements.

New “Trump Accounts” Provide New Savings Opportunity for Families

The IRS has released guidance on Trump Accounts, a new savings option created under the Working Families Tax Cuts Act. The accounts are designed to help families save for a child’s future, with certain contributions eligible for tax benefits and special rules applying to qualifying deposits. Families interested in opening an account should review eligibility requirements and contribution guidelines as more details become available.

The post Fall 2026 Tax Deadlines and IRS News appeared first on Alloy Silverstein.

• Create a midyear sort of tax records. Good recordkeeping is one of the best ways to protect valuable tax deductions. Maintain documentation for expenses such as charitable donations, childcare costs, medical expenses, business mileage, travel expenses and gambling losses. Establishing a reliable system now can save time and stress later. Also consider taking advantage of the new above the line charitable donation of up to $2,000 ($4,000 if married) while there is still plenty of time.
• Boost retirement savings. Retirement contribution limits remain generous, giving you an opportunity to increase tax-advantaged savings before year-end. For 2026, eligible taxpayers can contribute up to the annual IRS limit for employer-sponsored retirement plans and IRAs, with additional catch-up contributions available for individuals age 50 and older. Increasing contributions may lower taxable income while helping strengthen long-term financial security.
• Review education savings options. If you’re saving for a child’s education in a regular investment account, consider whether a 529 education savings plan could provide tax advantages. Earnings in these accounts grow tax-deferred, and withdrawals are generally tax-free when used for qualified education expenses. Starting earlier allows more time for potential tax-advantaged growth.
• Update withholding and estimated taxes. Major life changes such as marriage, divorce, a new job or changes in income can affect how much tax you should be paying throughout the year. Reviewing your withholding and estimated tax payments now may help you avoid underpayment penalties or an unexpectedly large balance due next spring. At the same time, avoiding overpayment can improve cash flow during the year.

A proactive tax review can help uncover opportunities and minimize costly mistakes. Please call if you would like assistance with year-end tax planning strategies tailored to your situation.

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• Beat the heat without burning cash. Summer utility bills can rise fast when temperatures climb, making this the ideal time to reassess your energy habits. Small changes like adjusting your thermostat, replacing filters, or sealing drafts can help lower monthly expenses without sacrificing comfort.
• Make vacation memories while keeping spending in check. Travel spending adds up quickly when meals, activities, and unexpected costs are not planned ahead of time. Creating a vacation budget before booking helps you enjoy your trip while keeping your finances on track once you return home.
• Don’t leave summer tax perks on the table. Summer can open the door to valuable tax opportunities, especially for families with children enrolled in camps or for investors reviewing gains and losses midyear. Taking time to organize receipts and revisit tax strategies now can make filing season much smoother later.
• Turn your clutter into a summer side hustle. Summer cleaning is not just good for your home – it can also boost your bank account. Selling unused clothing, furniture, electronics, or sporting goods can generate extra income while helping you create a more organized space.
• Give your emergency fund a warm-weather boost. A midyear contribution to your emergency fund can strengthen your financial safety net before the busy fall and holiday seasons arrive. Even small additions from side gigs, bonuses, or garage sale profits can make a meaningful difference over time.
• Stop sneaky summer spending in its tracks. Streaming services, outdoor events, dining out, and seasonal activities can quietly inflate your monthly budget during the summer months. Reviewing recurring charges and prioritizing lower-cost entertainment options can help keep spending under control.
• Get ahead of fall before it gets expensive. Preparing early for upcoming seasonal expenses can help you avoid relying on credit cards later in the year. Setting aside money now for school supplies, clothing, or extracurricular activities makes those costs feel much more manageable.
• Give your summer paychecks a fresh purpose. Extra income from overtime, seasonal work, or reduced school-year expenses can create an opportunity to strengthen your finances. Consider directing a portion toward savings, debt payoff, or long-term financial goals before everyday spending absorbs it.
• Refresh your financial goals before the year speeds up. Summer is a natural midpoint to revisit the goals you set at the beginning of the year. Reviewing your progress now gives you time to adjust your budget, savings habits, or investment strategy before the busy fall season arrives.

A few thoughtful money moves this summer can create more flexibility and a stronger financial foundation for the rest of the year.

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What is Kwong v. United States?

Kwong v. United States is a recent federal court case that examined how special IRS disaster-relief provisions were applied during the COVID-19 pandemic. The court concluded that certain tax filing and payment deadlines may have been automatically extended for a longer period than many taxpayers and practitioners previously understood. As a result of the court’s decision, some penalties and interest assessed during that time may have been applied incorrectly, potentially creating refund or abatement opportunities for affected taxpayers.

Potential claim deadline: July 10, 2026

Although the law is still developing, July 10, 2026, may be an important deadline for preserving certain claims or requesting a refund or abatement. Our tax team is actively monitoring this area and evaluating whether the ruling may be relevant based on your individual circumstances.

Why this matters

During the COVID-19 declared emergency, special disaster-relief rules postponed certain tax filing and payment deadlines. In Kwong, taxpayers who paid certain penalties and interest – or still have unpaid assessed amounts from that period – may want to review whether relief is available. This issue may apply to a wide range of taxpayers, including individuals, businesses and trusts/estates.

Items worth reviewing

• Failure to file and pay penalties
• Certain estimated tax penalties and interest

Important reminders

• There may be a limited‑time opportunity to recover penalties and interest paid during the pandemic.
• The IRS will not issue refunds automatically.
• Action is required by July 10, 2026, but in some situations, the deadline could be earlier.
• Future guidance from the IRS, legislation, or court cases could change the outcome of this issue.
• We can help you determine eligibility based on your specific facts and circumstances and file protective claims or claims for refund or abatement of penalties and interest where appropriate.

What you can do now

• Review IRS notices and account transcripts for tax years 2019-2022 for penalties or interest tied to late filing, late payment, or estimated taxes.
• Identify any amounts already paid as well as any balances that remain assessed but unpaid.
• Contact your CPA early to determine whether a protective claim or refund request should be filed before the July 10th deadline.

Consult with an Alloy Silverstein Advisor

Please call our office at 856.667.4100 or contact your Alloy Silverstein advisor to discuss whether Kwong v. United States may apply to you. We can help evaluate eligibility, review IRS records, and prepare any appropriate protective claims or refund requests before applicable deadlines. Proactive planning and timely action are often the key to preserving valuable tax opportunities.

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Peak wedding season 

Filing status, combined income, and tax bracket may all shift with marriage. Report name changes to the SSA, update address changes with employers and the IRS, and review Form W-4 withholding. 

Sending kids to day camp 

Day camp expenses may qualify for the Child and Dependent Care Credit if the care allows you to work. Eligible costs may include day camps, babysitters, and daycare programs for children under age 13. 

Seasonal and part-time jobs 

Students, teachers, and seasonal workers often take on summer jobs. Even workers with modest earnings may qualify for refunds of withheld taxes. 

Renting out a vacation home 

If you rent the property for 14 days or less, the income is generally tax-free (the ‘Augusta Rule’). If rented for more than 14 days, it may qualify as a rental, allowing certain deductions. 

Completing your extended return 

If you filed a tax extension, summer is an optimal time to finalize your return. Don’t wait until the last minute! 

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June 15, 2026 – Second quarter 2026 individual estimated tax payments are due.

July 31, 2026 – Due date for filing 2025 retirement or employee benefit plan returns (5500 series) for calendar year plans.

September 15, 2026 – Third quarter 2026 estimated tax payments are due. Extension deadline for 2025 S-Corporation and partnership returns.

This Summer – Be proactive with your finances and check with your CPA or advisor for a tax and financial review to go over your personal or professional goals.

What the IRS is Up To

Still Waiting on Your Refund?

Some taxpayers are still experiencing delayed refunds due to the IRS’s transition to digital disbursements. If your direct deposit fails, you may receive IRS Notice CP53E, often caused by missing bank information, name mismatches, or rejected deposits. You typically have 30 days to correct the issue online or the IRS may issue a paper check, which could take up to six weeks. Use the IRS “Where’s My Refund?” tool to check your status. 

NJ Property Tax Relief: 2026 Reminders 

New Jersey’s ANCHOR, Senior Freeze, and Stay NJ property tax relief programs continue rolling out in 2026 with a deadline of November 2, 2026. Senior Freeze payments begin in July, ANCHOR payments start in September, and Stay NJ payments follow a quarterly schedule. Eligibility is based on residency, income, and age as of 2025, and some residents may receive auto-filed applications or mailed notices. Eligible seniors can file a single PAS-1 form for all three programs. 

Tariff Update: Monitoring Potential Impacts 

Recent U.S. Supreme Court developments related to tariffs may affect businesses with imported inventory or global supply chains. The AICPA is monitoring potential impacts on balance sheets, inventory costs, and possible refunds. Guidance continues to evolve, and the financial impact will vary by business. Discuss any concerns with your CPA or advisor as more information becomes available. 

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