KAD Alliance

Growth changes more than your revenue.

As your business gets bigger, your transactions, payroll, expenses, reporting requirements, and financial decisions become more complex.

Building the right financial systems early can make that growth much easier to manage. It helps you avoid outgrowing your processes.

👉 Learn more about K.A.D Alliance:
https://www.kadalliance.com/

Enhanced Tax Credit Can Help Cover 2026 Childcare Costs – Did You Know? (2/2)

If you pay for care for your child under 13 years of age, or for your spouse or other dependent who requires help with basic self-care, then you may qualify for a federal tax credit. The Child and Dependent Care Tax Credit (CDCTC) can help reduce your federal income tax based on care expenses that you pay in order to work or seek work.

The CDCTC is calculated as a percentage of eligible care expenses. As in the past, the credit is subject to phase-down ranges, meaning that the maximum credit amount may decrease based on a person's adjusted gross income (AGI). However, new rules that took effect this year have significantly increased the maximum credit amount for people with AGIs both below and within the phase-down ranges.

For example, a married couple filing a joint return with an AGI of 75,000-150,000 may qualify for a credit of up to 35% of eligible care costs, up from 20% in 2025. Meanwhile, a single filer with an AGI of $15,000 or less may be entitled to a credit equaling 50% of qualifying expenses. Above $15,000, the rate gradually declines, reaching 35% once AGI exceeds $43,000. A tax professional can help you determine whether you qualify for the CDCTC, and if so, what percentage you may use to figure your credit amount.

Financial reports aren't just documents for your accountant.

They can help you understand whether expenses are increasing, which areas are performing well, how profitable your business really is, and where you may need to make changes.

The real value isn't having the report. It's knowing what to do with the information inside it.

👉 Explore K.A.D Alliance:
https://www.kadalliance.com/

You don't always need to make a major change to improve your financial position.

Sometimes the biggest opportunities are hidden in recurring expenses, vendor costs, subscriptions, or spending patterns that have gone unnoticed.

Regular financial reviews help you see those patterns before they become bigger problems.

👉 Learn more about K.A.D Alliance:
https://www.kadalliance.com/

Tax preparation happens after the year is over. Tax planning shouldn't.

When you understand your financial position throughout the year, you have more time to make informed decisions and prepare for upcoming obligations.

The best tax conversations often happen before the deadline is anywhere near you.

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https://www.kadalliance.com/

Enhanced Tax Credit Can Help Cover 2026 Care Costs – Did You Know? (1/2)

If you pay for care for your qualifying child under age 13, or for your spouse or other qualifying person who is physically or mentally incapable of self-care and lives with you for more than half the year, then you may qualify for a federal tax credit. The Child and Dependent Care Tax Credit (CDCTC) can help cover care expenses you pay in order to work or seek work. Rule changes that took effect this year have made the CDCTC more valuable for many households.

As in past years, you may use up to $3,000 of eligible expenses to figure the credit for one qualifying person, or up to $6,000 for two or more qualifying persons. However, beginning in 2026, the maximum credit rate increased from 35% to 50% of eligible expenses. The applicable percentage declines as adjusted gross income rises, but many households may qualify for a larger credit than under prior law. The increase can be as much as $900 for taxpayers with two or more qualifying persons.

In general, the CDCTC is available for all filing statuses except married filing separately (MFS). However, MFS filers may qualify if they meet special requirements, including filing separately, maintaining a home for a qualifying person for more than half the year, paying more than half the cost of maintaining the home, and not living with their spouse during the last six months of the year. To claim the credit, you must provide information about both the care recipient and care provider on your tax return. A tax professional can help you determine whether you are eligible for the CDCTC, and if so, help you meet the reporting requirements to claim the largest possible credit.

Month-end shouldn't simply mean checking whether the books are finished.

It's an opportunity to understand what actually happened in your business and identify anything that needs attention before the next month begins.

Consistent financial reporting turns bookkeeping data into useful business insight.

👉 Explore K.A.D Alliance:
https://www.kadalliance.com/

Tax Rules for Scholarships, Grants and Fellowships - Did You Know?

Common questions about education expenses relate to whether scholarships, fellowships and grants constitute taxable income. These awards are generally tax-exempt when received by a degree candidate at an eligible educational institution and used for qualified education expenses, including tuition, required enrollment fees, and required course-related books, supplies and equipment.

However, taxes may apply to funds used for nonqualified expenses like housing, food, travel and optional equipment. Fellowships that carry a work requirement, such as serving as a teaching assistant, are generally taxable compensation to the extent they represent payment for teaching, research or other required services, subject to limited exceptions.

The educational institution or scholarship provider should provide you with detailed information about the potential taxability of funds. By reviewing that information with you, a tax professional can help you maximize both tax benefits and peace of mind.

Quarterly Estimated Tax Payments - Reminder

If you are making quarterly estimated tax payments to the IRS, the due date for the June 1 - August 31, 2026 payment period is coming up next week on Tuesday, September 15, 2026.

For payments made using IRS Direct Pay, you can make payments until 11:45 p.m. ET on the due date. Debit and credit card payments may also be made online through an IRS-approved payment processor.

Your instincts matter as a business owner, but your numbers should be part of the conversation.

Whether you're hiring, increasing prices, opening a new location, or cutting costs, your financial data can help you understand the potential impact before you make the decision.

Better decisions start with better information.

👉 Learn more:
https://www.kadalliance.com/