Springer Rudy and Company

We’re back at the Mohnton-cumru Lions Club Music & Makers Market!

Today is National Senior Citizens Day, and we want to highlight something worth knowing about for the 2026 tax year: the extra deduction available to taxpayers 65 and older.

Thanks to the One Big Beautiful Bill Act, seniors can claim an additional $6,000 deduction on top of the standard deduction for tax years 2025 through 2028. For a married couple where both spouses are 65 or older, that's $12,000. And you don't have to itemize to claim it.

The deduction phases out for higher incomes, starting at $75,000 for single filers and $150,000 for married couples filing jointly.

If you or someone you know didn't take advantage of this on their 2025 return, an amended return may be worth looking into. And if you're planning ahead for 2026, this is definitely something to factor in before year end.

Happy National Senior Citizens Day to all the wise folks out there!

How you pay yourself as a business owner depends entirely on how your business is structured, and getting it wrong can cost you.

Sole proprietor or single-member LLC: You take owner draws. There's no payroll. Your profit flows to your personal return and you pay self-employment tax on it.

S corporation: You're required to pay yourself a reasonable salary through payroll before taking additional distributions. Skipping the salary is a common audit flag.

C corporation: You're an employee of your own company. You receive a W-2, and the company pays employer payroll taxes on your wages.

Partnership: Similar to a sole proprietor. Partners take draws, not wages.

The structure you choose affects your taxes significantly. If you're not sure whether you're set up correctly, it's worth a conversation. That's the kind of thing that's much easier to fix before year-end than after.

Quick reminder for Pennsylvania businesses on a monthly sales tax filing schedule: your July return is due Thursday, August 20th.

File through myPATH at mypath.pa.gov. Even if you had no taxable sales in July, you still need to file a zero return to stay in good standing with the PA Department of Revenue.

Filing late comes with penalties and interest, so get it in before the deadline.

It's back to school season, which means it's a good time to think about the tax benefits tied to education expenses.

Here are a few worth knowing:

The American Opportunity Credit covers up to $2,500 per year for the first four years of college. Up to $1,000 is refundable.

The Lifetime Learning Credit covers up to $2,000 per year for tuition and fees at any accredited institution, with no limit on the number of years.

529 plan contributions are not deductible on your federal return, but Pennsylvania offers a deduction on your state return.

Student loan interest may be deductible up to $2,500 depending on your income.

Each of these comes with income limits and eligibility rules, so the details matter. If you have a student in your household, it's worth reviewing what applies to your situation before year-end.

If you're self-employed, own a business, or have income that isn't subject to withholding (like rental income or investment income), you're probably required to pay estimated taxes four times a year.

The idea is simple: instead of paying everything in April, you pay as you go throughout the year, just like an employer withholds from a paycheck.

The 2026 estimated tax deadlines are:
Q1: April 15
Q2: June 15
Q3: September 15
Q4: January 15, 2027

Miss them and you could face a penalty even if you pay everything you owe at filing.

Tax season gets all the attention, but some of the most valuable work a CPA does happens the other eight months of the year. If you only reach out to your accountant in April, you might be missing out on planning that could actually save you money. We wrote about what year-round CPA support really looks like and why it matters.

What Does a CPA Actually Do For You Year-Round? Most people think of their CPA once a year, somewhere between January and April, when tax documents start arriving and the deadline starts looming. But if that's the only time you're hearing from your accountant, you mig...

Happy National Mutt Day to all the office dogs, work-from-home companions, and break-room visitors out there!

National Mutt Day is celebrated twice a year, and puts the spotlight on the 80% of dogs in shelters that are mixed-breeds.

Fun tax fact: in most cases your pet is not a business deduction. We know. We're sorry.

Hug your mutts today. Just maybe don't put them on your Schedule C.

These two terms get used interchangeably all the time, but they work very differently.

A tax deduction reduces your taxable income. So if you're in the 22% tax bracket and you claim a $1,000 deduction, you save $220 in taxes.

A tax credit reduces your tax bill directly, dollar for dollar. A $1,000 tax credit saves you $1,000 in taxes regardless of your bracket.

This is why credits are generally more valuable than deductions, even when the dollar amounts look the same on paper.

Some credits are even refundable, meaning if the credit is larger than what you owe, you get the difference back as a refund.

Today is National Drive-Thru Day, and while we appreciate a good fast food run as much as anyone, we want to make sure your business meal deductions are actually deductible.

Here's the quick version: business meals are generally 50% deductible when there's a genuine business purpose and a client, prospect, or employee present. The food has to be reasonable, not lavish, and you need to document the business purpose and who was there.

Drive-thru lunch by yourself while thinking about work? Not deductible. Sorry.

Happy National Drive-Thru Day -- enjoy that burger on your own dime!