Tax Guides in Plain English

Plain-English guides to individual, investment, business, entity and equity tax rules for tax year 2025 returns and 2026 planning, with links to official IRS sources.

These guides rewrite IRS forms, instructions and publications in everyday language. Each one covers tax year 2025 returns (filed in 2026) and 2026 planning, reflects the 2025 tax law changes where they apply, shows examples with simple numbers and links to the official IRS source so you can check the details yourself.

Tax rules change every year. Dollar limits are adjusted for inflation, and Congress and the IRS add, remove and modify rules. We state the tax year next to every figure and we update pages when the rules change, but you should always confirm current numbers at irs.gov before you rely on them.

Guides explain rules in general. They cannot account for your particular facts: your state, your filing status, your other income, your history with the IRS. If a page leads you to a question about your own situation, talk to a CPA. For payroll rules, see our payroll guides; for deadlines, see the tax and payroll calendar.

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Individual taxes

Filing status, deductions, credits, estimated tax, extensions and amended returns.

Filing Status: How to Choose the Right One

The five filing statuses explained in plain English, with the tests for head of household and qualifying surviving spouse.

Standard vs. Itemized Deductions

How to decide between the standard deduction and itemizing, with 2025 and 2026 amounts and new rules.

Federal Tax Brackets and Rates for 2025 and 2026

Official 2025 and 2026 federal tax bracket thresholds, with a worked example of how marginal rates are applied.

Child Tax Credit and Dependents

Child tax credit amounts, income limits and SSN rules, plus who qualifies as a dependent and how to claim the credit.

Education Credits and 529 Plans

How education credits, 529 plans and the student loan interest deduction work, including new 2026 rules.

Earned Income Credit (EITC)

Who can claim the EITC, 2025 and 2026 credit amounts and income limits, and the rules that trigger IRS letters.

Self-Employment Tax

How self-employment tax is calculated, who owes it, the wage base for 2025 and 2026, and what you can deduct.

Estimated Taxes: Who Pays and When

Who has to make quarterly estimated tax payments, the safe harbor rules, 2026 due dates and ways to pay.

Tax Filing Extensions (Form 4868)

How the automatic six-month extension works, how to request it, and why you still owe payment by April.

Amended Returns (Form 1040-X)

When to amend a federal return, time limits, how to file Form 1040-X and what to expect afterward.

HSAs and Health Coverage Tax Credits

HSA limits, new 2026 eligibility rules and how the premium tax credit and Form 8962 work.

Alternative Minimum Tax (AMT)

How the alternative minimum tax works, 2025 and 2026 exemption amounts, common triggers and the credit for prior-year AMT.

Additional Medicare Tax (Form 8959)

How the 0.9% Additional Medicare Tax applies to wages and self-employment income, thresholds and Form 8959.

Charitable Giving and Tax Deductions

How to deduct charitable gifts, what records to keep, and the 2026 changes for itemizers and non-itemizers.

Cancellation of Debt and Form 1099-C

When forgiven debt is taxable, how to read Form 1099-C, and the main exclusions including insolvency.

SALT Deduction and Property Taxes

How the SALT deduction cap works for 2025 and 2026, what taxes count and how property taxes are deducted.

New Deductions for Tips, Overtime, Car Loan Interest and Seniors

Caps, phase-outs, eligibility and forms for the new tips, overtime, car loan interest and senior deductions.

How Long to Keep Tax Records

IRS record retention periods from three years to indefinitely, what to keep and which records last longest.

Form W-4 and Paycheck Withholding

How to fill out Form W-4 step by step and adjust federal withholding using the IRS estimator.

Investing, retirement and real estate

Capital gains, crypto, retirement accounts, rentals and home sales.

Capital Gains and Losses

How capital gains and losses are taxed, with 2025 and 2026 rate thresholds, loss limits and reporting forms.

Cryptocurrency and Digital Asset Taxes

How crypto and NFTs are taxed, what to report on Form 8949, and how Form 1099-DA changes reporting.

Net Investment Income Tax (Form 8960)

Who owes the 3.8% net investment income tax, what income it covers and how Form 8960 works.

IRA and 401(k) Contribution Limits and Rules

2025 and 2026 retirement contribution limits, deduction and Roth income limits, and deadlines.

Roth Conversions and the Backdoor Roth

How Roth conversions are taxed, the pro-rata and five-year rules, and planning points before year-end.

Home Sale Exclusion

How the $250,000 and $500,000 home sale exclusion works, who qualifies, partial exclusions and reporting.

Rental Property Taxes

How rental income and expenses are reported on Schedule E, depreciation, passive loss limits and sale consequences.

How Social Security Benefits Are Taxed

How much of your Social Security is taxable, the base amounts, worksheet examples and planning ideas.

Business taxes

Deductions, depreciation, credits, accounting methods, contractors and nexus.

Schedule C for Sole Proprietors

A plain-English walk through Schedule C: income, expenses, self-employment tax, estimated payments and the 2025 and 2026 changes.

Business Expense Deductions

The tests for deducting business expenses, special rules for meals, gifts and equipment, and items you cannot deduct.

Home Office Deduction

Who qualifies for the home office deduction, two ways to calculate it, and the mistakes that cause problems.

Vehicle and Mileage Deductions

Standard mileage versus actual expenses, the 2025 and 2026 rates, vehicle depreciation limits and the log you need.

Accountable Plans and Expense Reimbursements

The three rules for tax-free expense reimbursements, the timing safe harbors and what happens under a nonaccountable plan.

Forms 1099-NEC and 1099-K

What Forms 1099-NEC and 1099-K report, the 2025 and 2026 thresholds, due dates and how to handle them.

Depreciation, Section 179 and Bonus Depreciation

How to recover the cost of business equipment: MACRS, Section 179 expensing and 100 percent bonus depreciation.

Cost Segregation Studies

How cost segregation speeds up real estate depreciation, how bonus depreciation fits in, and the trade-offs to weigh.

Qualified Business Income (QBI) Deduction

The Section 199A deduction explained: who qualifies, the income thresholds, wage limits, specified service rules and 2026 changes.

Start-Up Costs and Research Expenses

The $5,000 start-up deduction, 180-month amortization and the restored current deduction for domestic research costs.

Research Credit (R&D Tax Credit)

Who can claim the federal research credit, the four-part test, the small business payroll offset and documentation.

Small Business Tax Credits

The main federal credits small businesses can claim, who qualifies, the forms involved and what changed for 2026.

Retirement Plans for Business Owners

SEP, SIMPLE, solo 401(k) and defined benefit plans compared, with 2025 and 2026 limits and setup deadlines.

Health Insurance Deduction for the Self-Employed

How the self-employed health insurance deduction works, who qualifies, Form 7206 and the traps to avoid.

Cash vs. Accrual Accounting for Taxes

Cash versus accrual for tax purposes, who can use each, the gross receipts test and how to switch.

Inventory and Cost of Goods Sold

How cost of goods sold is calculated, how inventory is valued, and the small business exceptions.

Like-Kind Exchanges (Section 1031)

How to defer gain on business or investment real estate with a 1031 exchange, and the key deadlines.

Sales Tax Nexus and Economic Nexus

When an online or out-of-state seller must collect sales tax, how economic nexus works, and how to register.

Business entities, estates and trusts

S corporations, partnerships, C corporations, LLCs, reporting and estates.

LLC vs S Corporation vs C Corporation

A side-by-side comparison of LLC, S corporation and C corporation taxes, and how to choose with professionals.

LLC Tax Classification: Disregarded Entity, Partnership, S Corp or C Corp

How an LLC is taxed by default, how to change it with Form 8832 or 2553, and traps.

S Corporation Taxes and Form 1120-S

How S corporations are taxed, who can elect, key deadlines and forms, and what owners should watch.

Reasonable Compensation for S Corporation Owners

Why S corporation owners who work in the business need a reasonable salary and how to support it.

Partnership Taxes and Form 1065

How partnerships and multi-member LLCs report income, what partners pay, and the deadlines and penalties to know.

C Corporation Taxes and Form 1120

How C corporations are taxed, when Form 1120 and estimated taxes are due, and when it fits.

Beneficial Ownership Information (BOI) Reporting Status

The status of FinCEN beneficial ownership reporting as of October 2026 and what it means for owners.

Trusts and Estates: Form 1041 and Fiduciary Returns

What executors and trustees need to know about Form 1041, trust tax rates, deadlines and beneficiary distributions.

Estate and Gift Tax Basics

How the federal estate and gift tax works, the 2026 exemption amounts, filing rules and Illinois estate tax.

Equity compensation and startups

Stock options, RSUs, Section 83(b) and QSBS.

Questions about your own return?

General guides cannot cover every detail. A CPA can apply the rules to your facts.

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