SCOR Tax Services Division

The Work Opportunity Tax Credit is available until Dec 31,2025, for employers that hire workers who are qualified as part of these groups.

Groups:
• Qualified recipients of:
o Long-term family assistance
o Long-term unemployment
o Supplemental Nutrition Assistance Program benefits
o Supplemental Security Income
o A state program funded under part A of title IV of the Social Security Act relating to Temporary Assistance for Needy Families
• Formerly incarcerated individuals
• Qualified unemployed veterans, including disabled veterans
• Designated community residents living in empowerment zones or rural renewal counties
• People referred to vocational rehabilitation programs
• Summer youth employees living in Empowerment Zones

Employers can continue to use educational assistance programs to help employees with undergraduate or graduate-level student loan debt and other education expenses tax-free.
Eligible expenses:
Educational assistance programs can help pay for:
• Books
• Equipment
• Supplies
• Tuition and other fees
• Qualified education loans
Loan payments.
These programs can be used to pay principal and interest on an employee's qualified education loans.
Payments can be made directly to the educational provider, lender or directly to the employee. By law, tax-free benefits under an educational assistance program are limited to $5,250 per employee per year, as adjusted for cost-of-living for tax years beginning after 2026. Normally, assistance provided above that level is taxable as wages.

Which energy credits and deductions are expiring under OBBB, and what are their new termination dates?

1. 25C Energy efficient home improvement credit. The credit will not be allowed for any property placed in service after December 31, 2025.

2. 25D Residential clean energy credit. The credit will not be allowed for any expenditures made after December 31, 2025.

3. 25E Previously-owned clean vehicles credit. The credit will not be allowed with respect to any vehicle acquired after September 30, 2025.

4. 30C Alternative fuel vehicle refueling property credit. The credit will not be allowed for any property placed in service after June 30, 2026.

5. 30D New clean vehicle credit. The credit will not be allowed for any vehicle acquired after September 30, 2025.

6. 45L New energy efficient home credit. The credit will not be allowed for any qualified new energy efficient home acquired after June 30, 2026.

7. 45W Qualified commercial clean vehicle credit. The credit will not be allowed for any vehicle acquired after September 30, 2025.

8. 179D Energy efficient commercial buildings deduction. The deduction will not be allowed with respect to any property the construction of which begins after June 30, 2026.

Under current law, employers may contribute up to $5,250 annually per employee toward student loan repayment without those payments being counted as taxable wages. This provision, originally expanded by pandemic relief measures, allows workers to receive tax-free help paying down qualifying student debt.

Employers can include student loan payments as part of their broader educational assistance programs, which traditionally cover tuition, books, and other education expenses.

IRS urges extension filers to use IRS Free File this summer.

The Internal Revenue Service encourages taxpayers who requested an extension to file their returns now rather than wait until the Oct. 15 deadline.

Filing over the summer helps avoid the fall rush and gives taxpayers more time to resolve issues or arrange payments, if needed.

The Taxpayer Bill of Rights provides fundamental protection for all taxpayers.

All taxpayers have rights any time they interact with the IRS. These ten rights are outlined in the Taxpayer Bill of Rights. These rights cover a wide range of topics and issues and lay out what taxpayers can expect when working with the IRS.

The mission of the IRS is to provide America’s taxpayers top-quality service by helping them understand and meet their tax responsibilities and enforce the law with integrity and fairness to all Two key elements of this mission are to treat taxpayers with dignity and respect and to provide a positive customer experience. These rights protect taxpayers all year long regardless of their tax situation.

Billy Long was sworn in as the 51st Commissioner of the Internal Revenue Service on June 16. Long was confirmed by the Senate on June 12.

Long said he plans to develop a more taxpayer-friendly agency by transforming the culture at the IRS during his tenure. “I’m anxious to develop one that makes your lives and the taxpayers’ lives better,” Long wrote.

Long served as a U.S. representative for Missouri’s 7th Congressional district from 2011 to 2023. Prior to his time in Congress, he was a real estate broker for 32 years and an auctioneer for 31 years and also was a radio talk show host from 1999-2006.

Summer Day Camp Expenses – Did You Know?

Parents who paid for their children under the age of 13 to attend summer day camps may qualify to claim the Child and Dependent Care Credit on their tax returns. This credit provides assistance for parents who pay care expenses for a qualifying child so that they can work or seek work. You may also be able to claim the credit for day camp or other care costs for a dependent age 13 or older with a permanent disability. Note that expenses associated with sending children to overnight summer camps generally do NOT qualify for this credit.

To qualify for the Child and Dependent Care Credit, you must have earned income, and your adjusted gross income (AGI) must not exceed limits set by the IRS. Typically, the credit covers 20-35% of qualifying day camp or other childcare expenses, up to a maximum of $3,000 for one child or $6,000 for two or more children.

When claiming the Child and Dependent Care Credit, you generally must provide the name and taxpayer identification number (TIN) of the day camp or care provider on your tax return. In most cases, married taxpayers must file a joint return in order to get the credit, although exceptions exist for cases where spouses live apart. A tax professional can help you determine whether your summer day camp or other childcare expenses qualify for this valuable credit, and if so, help you maximize your credit amount.

National 529 Day - Did You Know?

If you put money in a 529 account for education, withdrawal of earnings are tax-free if used for qualified educational expenses. Qualified educational expenses include tuition, fees, housing, meals and books. Many states offer a full or partial tax deduction for 529 plan contributions. They may also offer incentives and promotions to encourage families to open and contribute to 529 accounts today on National 529 Day.

The Tax Cuts and Jobs Act (TCJA) also expanded eligibility for 529 savings plans. Up to $10,000 per year may be used for Kindergarten through Grade 12 education (public, private, or religious schools).

Capital and Ordinary Operating Expenses - Did You Know?

If you have business income, including income from self-employment activities, then you may have both capital expenses and ordinary operating expenses. Capital expenses relate to assets with lasting usefulness, like equipment, computers, machinery and furniture. Different tax rules apply for these two types of expenses, so make sure to keep them separate.