KAD Alliance

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.

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https://www.kadalliance.com/

Bookkeeping isn't just about recording transactions.

Your financial records give you the information you need to understand how your business is performing, where money is going, and what may need attention.

The value comes from having that information when you actually need it.

👉 See how K.A.D Alliance supports businesses with their financial needs:
https://www.kadalliance.com/

One of the biggest financial misconceptions for business owners is assuming profit and cash flow are the same thing.

They aren't.

A business can show a healthy profit while cash is tied up in unpaid invoices, inventory, or upcoming expenses. Understanding both gives you a much clearer picture of your financial health.

👉 Learn more about how K.A.D Alliance helps businesses understand and manage their finances:
https://www.kadalliance.com/

Tax planning doesn't need to be complicated. One of the most valuable habits you can build is setting aside time each month to review your financial performance.

Regular reviews help you estimate tax obligations, monitor profitability, and identify opportunities before deadlines arrive.

It's a simple habit that can make a big difference over time.

👉 Read the full article:
https://kadalliance.com/resources/small-business-tax-planning/

Educator Classroom Expense Deduction – Did You Know?

Eligible K-12 teachers, instructors, counselors, principals and aides who pay for classroom supplies out of pocket may deduct up to $350 of qualifying expenses per year. Married couples filing jointly who are both eligible educators may deduct up to $350 each, for a combined maximum of $700.

You do not need to itemize deductions to claim this deduction. Be sure to keep receipts and other records for any classroom expenses you plan to deduct.