Author: Service2Client

Seven Tax Moves to Make Before 2025 Ends – Year-End Tax Planning

Tax Planning 2025, Year-end tax planning 2025

Tax planning feels like homework nobody wants to do, but here’s the reality: real money is sitting on the table. The One Big Beautiful Bill Act changed the rules this year, and most people are still figuring out what matters for their wallets.

Max Out Everything While You Can

Here’s something many people miss. Every Dec. 31, workplace retirement accounts basically close their books for the year. That’s it, opportunity gone. The limit is $23,500 this year, or $31,000 for those over 50. Also, anyone between 60 and 63 can throw in an extra $11,250 with the new super catch-up provision. That’s serious money that could be working harder instead of going to taxes.

HSAs remain the best-kept secret in tax planning. Most people ignore them until someone explains the magic; it’s literally the only account where taxes never apply. Not when money goes in, not while it grows, and not when it comes out for medical expenses. Singles can contribute $4,300 and families $8,550, with up until the April 2026 tax deadline to make it happen. Starting in 2026, there’s a bonus feature: $150 a month can go toward concierge doctor memberships tax-free.

IRAs deserve attention, too. The contribution limit is $7,000 (or $8,000 for the 50-plus crowd) with that same April deadline. The catch? Income limits and existing workplace plans can complicate things, so checking the rules is important.

Transform Losing Stocks into Tax Wins

Everyone has those regrettable investments. Maybe it was that “sure thing” tech stock or the cryptocurrency experiment that went south. Here’s the good news, selling losers before year-end can offset winners for tax purposes. Even better, losses can erase up to $3,000 of regular income. Whatever doesn’t get used rolls forward indefinitely, like store credit that never expires.

Play the Charity Deduction Game Smart

The standard deduction has increased yet again, standing at $15,000 for singles and $30,000 for married couples. Most people won’t beat that with itemized deductions, but there’s a clever workaround. By bunching several years of charitable giving into 2025, taxpayers can itemize this year and claim the standard deduction in future years. It’s like buying in bulk for tax benefits.

Timing matters because 2026 brings stingier charity rules. Only donations exceeding 0.5 percent of income will count, and high earners face a 35 percent cap. Anyone feeling generous should probably act this year.

Control the Income Timeline

Freelancers and business owners hold the cards on payment timing. That December invoice could easily become January income with a quick conversation. Even employees sometimes have flexibility with bonuses through understanding employers or HR departments. The trick is knowing whether next year’s tax situation will be better or worse.

The Roth Conversion Opportunity

With permanently lower tax rates now locked in, converting traditional retirement funds into Roth accounts makes increasing sense. Yes, taxes are due on the conversion amount today, but then everything grows tax-free forever. Smart planners often execute these moves during lower-income years, like between jobs or early in retirement.

Navigate Required Withdrawals Carefully

Anyone who’s 73 or older must withdraw from retirement accounts by Dec. 31. No exceptions, no excuses. The penalties for forgetting are harsh. First-timers get a choice, either take it now or wait until April. But waiting means two withdrawals hit in 2026, potentially pushing income into higher tax brackets. It’s worth doing the math.

The Charity Strategy Nobody Mentions

After age 70½, a powerful option opens up. You can send up to $108,000 directly from an IRA to charity. This qualified charitable distribution satisfies required withdrawals without adding to taxable income. Married couples can each do this, potentially moving $216,000 to charity while avoiding taxes entirely. For those already charitably inclined, missing this opportunity is literally giving money to the IRS instead of chosen causes.

Take Action Before Time Runs Out

Smart taxpayers are running projections comparing 2025 and 2026 tax scenarios right now. They’re scanning investment accounts for tax-loss harvesting opportunities. They’re accelerating charitable plans into 2025 before the rules tighten. They’re smoothing income across tax years where possible.

Nobody gets excited about tax planning, but a few hours of attention before year-end could save thousands of dollars. Good tax professionals pay for themselves many times over, especially in years with rule changes like this one.

The New Face of Phishing: Techniques, Targets and Prevention

Phishing Attacks Phishing is a major threat that keeps evolving and has now become a sophisticated and costly cyber risk facing businesses of all sizes. Previously linked to malicious links in an email, phishing is now powered by AI, automation, and social engineering. The attacks have become harder to detect; they are faster to execute; and they can be very damaging if successful. With many business processes happening online – such as payments, approvals, and customer engagement – the attack surface has expanded, and so has the creativity of cybercriminals.

The Changing Landscape of Phishing

Modern phishing is unlike the previous suspicious and poorly written emails, and today cybercriminals are using AI tools to do many things, including:

  • Generate perfectly written and personalized messages – attackers can now easily analyze company websites, social media profiles, public reports, and employee profiles to clone the tone, style, and communication patterns. Messages appear legitimate when they reference recent projects or internal updates.
  • Generate deepfake audio and video – with readily available AI voice-cloning tools, a scammer can easily impersonate CEOs or CFOs and request urgent wire transfers or credential access.
  • Bypass MFA using real-time phishing kits – these kits mirror login screens of popular business tools such as Microsoft 365 or Google Workspace. An employee enters credentials and authentication codes into the fake page, giving attackers instant access.
  • Launch automated hyper-targeted attacks – with automation, criminals can target specific departments using tailored messages relevant to their daily tasks.

High-Value Targets Inside Organizations

Phishing attacks are no longer random but very strategic:

  • C-Suite executives – executives are prime targets due to their authority and access levels. If an executive is compromised, their inbox can be used to authorize payments or request sensitive data.
  • Financial teams – the accounts department faces fake invoice scams, fraudulent banking instructions, and impersonated vendor messages.
  • HR departments – attackers send fake resumes loaded with malware. They might also pose as job applicants to access employee data.
  • Remote and hybrid workers – these workers use shared Wi-Fi, personal devices, and unsupervised collaboration tools. This creates a wider entry point for attackers.
  • Customers and partners – attackers impersonate brands and trick customers into submitting payments or sensitive information through fake lookalike pages.
  • IT admins and system engineers are also valuable as they have privileged access.

Modern Phishing Techniques

Emails remain the dominant delivery method, but attackers have diversified to:

  • Quishing (QR Code Phishing)
    QR codes are everywhere: on flyers, delivery packages, restaurant menus, conference badge,s and more. However, QR codes can lead to malicious sites or credential harvesting pages.
  • Search Engine Phishing or Malvertising
    Fake ads appear above legitimate brands on search results that a user can click on –thinking it’s a legitimate link.
  • Browser-in-the-Browser Attacks
    These are fake login pop-ups that replicate trusted login screens. An employee will enter their credentials, thinking it’s a legitimate site, and this goes straight to attackers.
  • OAuth Application Scams
    Here, attackers don’t steal passwords. Instead, they trick users into granting access to a malicious app. Once the access is granted, the attacker has total access.
  • Deepfake Calls and Video Messages
    These may come as high-pressure video calls or messages from an executive requesting urgent action, emergency payment, or private documents.
  • Fake Travel and Expense Scams
    Taking advantage of corporate travel, attackers clone legit travel sites in order to steal credit card and employee information.

Prevention Strategies Every Business Must Adopt

Phishing is a problem that can’t be eliminated but can only be significantly reduced through a combination of technical measures and human risk management.

Prevention requires a combination of technology, processes, and people.

  1. Build a Security-Aware Culture
    Training must be continuous, engaging, and realistic. It should be conducted via simulation and scenario-based learning.
  2. Strengthen Email Authentication
    Implement modern AI-based email filtering tools to help detect anomalies that human eyes miss. Include identity verification protocols like DMARC, SPF, and DKIM to reduce spoofing attacks.
  3. Adopt Zero Trust Security
    Implement the “never trust, always verify” approach. Access should be limited, monitored, and timed out automatically. High-risk actions should trigger additional verification.
  4. Secure Remote Work
    Implement VPNs, approved devices, endpoint protection, encrypted storage, and clear policies.
  5. Implement Multistep Verification for Financial Transactions
    Require verbal confirmation or dual approvals for high-value transfers.
  6. Monitor Vendors and Partners
    Keep in mind, there is a sharp rise in supply-chain attacks. Regularly verify domains, emails, and communication from suppliers and partners.
  7. Have an Incident Response Plan
    Be ready with a response plan in case of a breach. Acting quickly will reduce potential losses.

Conclusion

Phishing has transitioned into a sophisticated threat targeting the core operations of a business. New phishing variants reveal how attackers continually evolve their techniques. With the right awareness, technology, and processes, organizations can significantly reduce exposure.

Long Term Care Insurance Options

What is Long Term Care Insurance?In 2024, the median household income in the United States was $83,730. However, the national average annual cost of 24-hour paid long-term care (LTC) for a retiree age 65 and older was more than $125,000, according to the Department of Health and Human Services. Moreover, one in five seniors will require care for more than five years.

Obviously, the math varies by household, but the reality is that the majority of older Americans who rely on paid caregiving will use much of their retirement savings and investments to pay for it. When considering insurance, there are presently two options: Long Term Care Insurance (LTCi) and Hybrid Life Insurance with an LTC component. Be aware that each policy offers a throng of variations and exclusions, so it is important to dig into the details of individual policies before making a decision.

Long Term Care Insurance

Purchasing a long-term care insurance policy can help offset the cost of caregiving for either in-home care (in some cases, even payouts for family caregivers) or care outside the home (e.g., adult daycare services, assisted living, memory care, nursing home). However, it’s important to understand the following about LTCi.

It can be quite expensive.

Premiums can range from $2,000 a year for a man in his 50s to more than $12,000 a year for a woman in her 70s. Furthermore, premiums increase annually until benefits begin (premiums cease while benefits are paid).

It may not cover the full cost of care.

Unless care is needed for only a few hours a day, long-term care policies generally do not cover the full cost of paid caregiving. For example, let’s say a policy pays $150 a day, but the owner needs care for eight hours a day. His in-home caregiver charges $30 an hour. That means his cost is $240 a day, so he’ll have to pay the additional $90 a day out of his own pocket. That’s

up to $2,790 a month or $32,850 a year. So, while LTCi can help defray the cost, someone who needs extensive care must have other assets to cover the rest of the cost. For an elderly person who needs 24-hour home care, the cost can be exponential.

Many new policies cover only a handful of years.

When you purchase an LTCi policy, you choose from various options that increase or decrease your premium. For example, coverage periods may range from two years to five years to life. You may also select a waiting period before coverage begins after purchase, which could range from 30 days to 365 days. The longer the wait period, the lower the premium. If you have an immediate need for coverage, you might be denied coverage altogether. That is why it’s best to purchase coverage when you are younger (50s) and presumably healthy.

You don’t get to choose when to start benefits.

LTCi coverage doesn’t kick in until you qualify, which generally means you are no longer able to independently conduct some or all of the prescribed daily living activities. The five primary qualifiers are bathing, going to the toilet, dressing yourself, feeding yourself, and the ability to move from bed to chair/wheelchair. Qualification to begin taking LTCi benefits usually requires physician verification.

The downside of a standalone LTCi policy is that it is a “use-it-or-lose-it” type of contract, much like auto or homeowner’s insurance. In other words, you may pay for it for decades but never actually use it, so all the premiums paid are lost.

Hybrid Life/Long Term Care Insurance

On the other hand, a hybrid insurance policy will pay out some portion of unused proceeds to beneficiaries upon the death of the policyowner. A hybrid policy is basically a life insurance policy with an LTCi rider or an accelerated benefit clause, which, either way, means it will cost more.

First and foremost, it works just like life insurance – once the owner passes away, the beneficiary receives a payout. However, if the owner needs money to pay for long-term care while he is still alive, he can tap the rider or life insurance payout to pay for the care. Then, when he passes away, his heirs receive any amount of the unused proceeds. With this type of policy, the owner doesn’t pay for LTCi coverage he does not need, but it’s available if he does need it.

Premiums for a hybrid policy, like any life insurance, depend on the age, gender, health, and amount of insurance proceeds desired, as well as any additional charge for the LTCi rider. Some policies include LTC benefits as a standard feature.

Employer-Sponsored Benefit

If your employer offers long-term care insurance as a voluntary benefit, it’s worth considering because group rates are generally cheaper than on the individual market. However, while employer-sponsored LTCi policies are usually portable – meaning you can keep paying for it after you leave your employer – your premiums may increase when no longer part of the group policy.

As always, reach out to a professional when it comes to planning for you and your family’s future care.

5 Rules for Giving to Charity

Giving to CharityGiving to charity is good for a couple of reasons. First, giving to organizations you believe in is intrinsically good – for them and for you. When we give, the “love hormone” oxytocin is released. Second, giving can reduce your taxable income, which also might make you feel pretty good. But here are a few things to know before you start doling out your cash.

Make sure you give to an IRS-recognized charity. More specifically, it must be a tax-exempt organization that is defined by section 501(c)(3) of the Internal Revenue Code, which includes entities like religious organizations, the Red Cross, nonprofit educational agencies, museums, volunteer fire companies, and organizations that maintain public parks. Most importantly, you must not have received anything in return for your gift. So before you give, make sure you verify your organization with this handy IRS tool. It’s super important to do this before you donate, and be sure to ask how much of your contribution will be tax-deductible. This is key.

Gifts to family and friends don’t count. As much as you’d like to gift perhaps a worthy nephew, these amounts are not tax-deductible. In fact, if they exceed a certain amount, they could be subject to a gift tax.

Deductions have a cap. Generally, you can deduct up to 60 percent of your adjusted gross income via charitable donations (for cash donations). That said, you may be limited to 20 percent, 30 percent or 50 percent, depending on the type of contribution and the organization. Examples of limited contributions include non-cash gifts, private-foundation gifts, etc. This deduction limit applies to all the donations you make during the year, no matter how many organizations you give to.

Exceeding your limit. If you go over the 60 percent limit of your adjusted gross income, the amount can be deducted from your tax returns over the next five years, or when the money’s gone. This process is known as a carryover. Good news for those who are generous.

Deductions for non-itemizers & itemizers. Specifically, for the 2025 tax year (taxes that are due by April 15, 2026), you’ll have to pivot and itemize to deduct your charitable contributions and get the tax break.

But for the 2026 tax year (taxes due April 15, 2027), the rules change for both types:

  • If you don’t itemize on your tax return, you can deduct up to $1,000 (single) or $2,000 (married filing jointly) in charitable contributions. This means you can take an above-the-line deduction for the 2026 tax year on the tax return that you’ll file in 2027.
  • If you do itemize on your tax return, you must donate an aggregate total of at least 0.5 percent of your adjusted gross income to charity to claim the deduction. Only the portion of your total charitable donations that exceeds 0.5 percent is deductible.

Making sure you follow these guidelines will ensure that you can realize your well-deserved deductions and tax breaks. If you have other questions about charitable giving, consult your tax professional. They’ll know all the ins and outs of charitable giving and keep you secure moving forward.

Sources

Tax-Deductible Donations: 2025-2026 Rules for Giving to Charity – NerdWallet

Partial Government Funding, Promoting Transparency and Protecting Against Foreign Terrorism

Government Promoting TransparencyEpstein Files Transparency Act (HR 4405) – The purpose of this bill is to require the Department of Justice to release all documents and records in its possession of investigations and court cases related to Jeffrey Epstein. Epstein was previously convicted of soliciting prostitution from an underage girl, and also faced new sex trafficking charges prior to his 2019 death in custody. The files are expected to reveal the names of other people involved in the sex trafficking scheme. The act was initially introduced by Rep. Ro Khanna (D-CA) on July 15. It was updated and passed in the House on Nov. 18, in the Senate the next day, with only one opposing vote between the two chambers. The bill was signed into law by the president on Nov. 19. The DOJ has up to 30 days to release the documents, which may be lightly redacted to protect against unwarranted invasion of privacy, such as victim names and medical data.

Continuing Appropriations, Agriculture, Legislative Branch, Military Construction and Veterans Affairs, and Extensions Act, 2026 (HR 5371) – This is the bill that ended the federal government shutdown. It includes funding for the remainder of the fiscal year for the food assistance program SNAP, the Department of Agriculture, the FDA, the military, Veterans Affairs, and Congress through Sept. 30, 2026. However, it stops short of funding approval beyond Jan. 30, 2026, for Commerce, Justice and Science (CJS); Defense, Energy and Water; Financial Services and General Government (FSGG); Homeland Security; Interior, Environment, and Related Agencies; Labor, Health and Human Services, and Education (LHHS); State, Foreign Operations and Related Programs; Transportation; and Housing and Urban Development. The continuing resolution did contain a few ancillary provisions, including mandatory backpay and rehiring of all federal employees furloughed or laid off during the shutdown. The original version of the bill was introduced on Sept. 16 by Rep. Tom Cole (R-OK). It passed in the House on Sept. 19 and failed in the Senate 14 times before a revised bill was passed on Nov. 10. The final bill, with changes, passed in the House on Nov. 12 and was signed into law on the same day.

District of Columbia Cash Bail Reform Act of 2025 (HR 5214) – This bill was introduced on Sept. 8 by Rep. Elise Stefanik (R-NY). It represents Republicans’ ongoing battle over who has jurisdiction over Washington, D.C.’s law enforcement and justice system. The bill would return to a cash bail system and require automatic detention of those charged under a wider set of offenses. The new confinement rule counters D.C.’s long-standing system of judge discretion regarding detention or supervised release. The bill passed in the House on Nov. 19 and currently lies in the Senate.

Strengthening Cyber Resilience Against State-Sponsored Threats Act (HR 2659) – This bipartisan legislation represents a federal strategy to strengthen U.S. cyber defenses to counter China’s attempts to actively target American infrastructure. Unfortunately, the bill does not apply to other hostile state-sponsored cyber actors such as Russia, Iran, or North Korea. Introduced by Rep. Andrew Ogles (R-TN) on April 7, the bill passed in the House on Nov. 17 and currently rests with the Senate.

Department of Homeland Security Vehicular Terrorism Prevention and Mitigation Act of 2025 (HR 1608) – This bipartisan bill seeks to address the rising threat of vehicle-based attacks, including the possible misuse of autonomous vehicles, rideshare platforms, and connected vehicle technologies. The legislation was introduced by Rep. Carlos Gimenez (R-FL) on Feb. 26 and passed in the House on Nov. 17. It currently awaits consideration by the Senate.