<![CDATA[HOODS TAX

<![CDATA[HOODS TAX - Blog]]>Wed, 20 May 2026 21:53:17 -0400EditMySite<![CDATA[401(k) Limits Are Changing. Here’s What You Need to Know.]]>Sat, 15 Nov 2025 05:00:00 GMThttps://www.hoodstax.com/tax-accounting-blog/401k-limits-are-changing-heres-what-you-need-to-know

On November 13, 2025, the IRS announced new updates to 401(k) contribution limits.

We know that when changes like these happen, they can cause confusion and add to the stress of managing your finances. So today, we’re sharing some simple information to help you navigate the changes.

Please note: The information below is not financial advice. For tailored advice, we recommend speaking with a financial advisor and your tax preparer.

What Is Changing?

The biggest change happening—and the one you are probably most concerned with—is that the IRS is increasing the individual contribution limit for 401(k) contributors. Other changes include increases to contribution limits for other savings plans, as well as new guidance provided by the IRS.

Who Does This Impact?

If you contribute to a 401(k) or other retirement savings plan, you may be impacted by these changes. We recommend speaking with your tax preparer and your financial advisor for more information about how these new updates will affect you.

How Much Is the 401(k) Contribution Limit Increasing?

The annual contribution limit for individuals participating in 401(k) plans, as well as 403(b), 457, and Thrift Savings Plans, is increasing from $23,500 to $24,500.

For those contributing to an IRA, the annual contribution has increased from $7,000 to $7,500.

Catch-up contribution limits have also increased, at different rates for different plans.

When Do the Contribution Limit Increases Begin?

The increases to contribution limits go into effect beginning in 2026. The previous limits will continue to apply for contributions made in 2025.

Who Should I Talk to for Questions about My 401(k)?

If you have questions about your 401(k) or other retirement savings plan, speak with your financial advisor or planner.

If you want to know how your 401(k) plan impacts your taxes, reach out to your tax preparer.

At Hoods Tax & Accounting, we are always happy to help our clients by answering questions and providing ongoing support as you navigate the complex world of taxes. Please contact us at admin@hoodstax.com to schedule your next appointment.

]]><![CDATA[Small Business Planning for the End of the Year]]>Wed, 15 Oct 2025 04:00:00 GMThttps://www.hoodstax.com/tax-accounting-blog/small-business-planning-for-the-end-of-the-year

October means the holidays are right around the corner—and so is the end of 2025.

Is your business prepared for everything the end of the year will bring?

Here are 3 things your small business can do to begin end-of-year planning in October.

1: Create a Plan for Holiday Season

Don’t wait until November to start thinking about the logistics of running your business during the holidays. Create a plan now so that your small business runs smoothly throughout the chaos.

Figure out if any of your staff will be unavailable, and when. Communicate schedules early so that everyone can make plans with their families.

If your business has special promotions during the holidays, plan those out now.
For businesses with physical inventory, think about how the holiday season will impact sales—will you be likely to sell more or fewer products during the holidays? Plan inventory accordingly.

Remember that the holidays are hard for every small business. You’re not alone! As you plan, give yourself grace, and keep notes so that you can fine-tune your holiday prep next year.

2: Begin Planning Your 2026 Marketing

October is the perfect time to begin planning your marketing for next year. Most of the year is behind you, so you have plenty of data to look at, but you aren’t yet inundated with holiday stress or major end-of-year tasks.

Sit down and look over your 2025 marketing. What worked? What didn’t? What new ideas do you have for 2026?

Write down all of your thoughts now, and begin to sort them out.

Don’t try to do it all. Focus on the marketing avenues that paid off for you in the past year—whether through increased brand awareness, more appointments, or direct sales.

3: Prep for Tax Season

Most importantly, October is the time to begin preparing your small business for the impending tax season.

If you wait until December, you’ll only add more stress onto the busyness of the holidays. Instead, speak with your bookkeeper, accountant, and tax preparer early to find out what you can do to get prepped before the end of the year.

Beginning tax prep in October gives you the opportunity to catch—and address—problems early. If you have missing paperwork, you won’t need to rush to find or complete it. If you find that your expenses have not been well organized throughout the year, you will have time to create an organized system for tracking and reporting them.

If you are a small business based in Goose Creek, SC; Summerville, SC; or North Charleston, SC; Hoods Tax & Accounting is here to support you. Stop by during office hours or email us at admin@hoodstax.com to schedule an appointment with a member of the Hoods team.

]]><![CDATA[Should I Meet with My Tax Preparer Before Tax Season?]]>Mon, 15 Sep 2025 04:00:00 GMThttps://www.hoodstax.com/tax-accounting-blog/should-i-meet-with-my-tax-preparer-before-tax-seasonAs tax season approaches, you may be wondering:

“Should I meet with a tax preparer before tax season starts?”

The answer varies based on your circumstances, but in general, the answer is YES!

Find a Preparer You Trust

If you don’t already have a trusted tax preparer, it’s a good idea to research and meet with a few preparers in advance to find one who will be a good fit for you.

Some preparers have specific clientele they prefer to work with, while others have specialized skills to offer. It’s important to make sure you choose a tax preparer who understands the nuances of your unique situation and has the skillset to support you.

You may also find that one preparer’s communication style is more in line with your own, making them a better fit to work with you.

Most importantly, we recommend finding a tax preparer who is local to you, and is easy to get in touch with when needed.

Here at Hoods Tax & Accounting, our tax preparers are local to Goose Creek and Summerville, SC. They are experienced tax preparers who understand the needs of our clients because they live and work in our community. We also have a dedicated admin email available that is checked regularly–so when our preparers are out of the office, we will still get back to clients in a timely manner, especially if there is an emergency.

Plan Ahead for Tax Season

By meeting with a tax preparer before tax season, you can ensure that you have covered all of your bases.

No one wants a surprise during tax season. We all hope our filing will be uneventful. But if you ignore your taxes until it’s time to file, you are setting yourself up for the unexpected.

Here at Hoods, our team offers Tax Planning services to help you get prepared for tax season in advance.

Get Answers to Your Questions

You don’t have to wait until your tax filing appointment to ask questions.

If you have questions or concerns about your taxes, meet with your preparer now to get answers and talk through your options if you have concerns.

Take the Stress Out of Tax Season

Meeting with your tax preparer early–whether to make sure they are the right fit or for a Tax Planning session–is always a good idea. The team here at Hoods welcomes you to reach out and schedule an appointment!
If you aren’t already connected with a trusted tax professional, contact us at admin@hoodstax.com to find the right tax preparer for you, and schedule an appointment before tax season begins.

]]><![CDATA[3 Reasons to Invest in Tax Planning This Year]]>Fri, 15 Aug 2025 04:00:00 GMThttps://www.hoodstax.com/tax-accounting-blog/3-reasons-to-invest-in-tax-planning-this-yearWe’re heading into fall, which means we’re thinking ahead to tax season!
If you haven’t thought about taxes since filing your 2024 return, you’re probably feeling that familiar dread reading this: the stress brought on by bracing for your filing results.
If you relate, it’s time to think about investing in our Tax Planning services.

What Is Tax Planning?

Tax Planning is a proactive approach to your yearly taxes. Instead of ignoring your taxes throughout the year and facing the unknown in tax season, our local tax pros will sit down with you in advance to look at the big picture of your financial situation.
Together, you’ll determine what your filing results will look like at the end of the year, and make a plan to improve your results before the year ends if needed.

Why Should I Invest in Tax Planning?

So why should you invest in Tax Planning? What makes Tax Planning so valuable?

There are many reasons to use Tax Planning services like the ones offered here at Hoods Tax & Accounting. Here are 3 of the most important reasons.

1: Plan for Major Life Events

Most major life events impact your taxes, but often, families aren’t thinking about the tax implications while living their lives.

For instance, if you get married (or divorced), your taxes will be affected. If you buy or sell a house, you may have changes in your taxes. Giving birth or adopting a child can also impact you.

Essentially, if you are going through any major change in your life this year, it’s a good idea to sit down with a Tax Planning professional to discuss how it could impact your taxes–for better or for worse.

2: Lower Your Tax Liability

The last thing anyone wants is to file their taxes and find out they owe more than expected.

This is one of the biggest benefits of investing in Tax Planning services. When a professional looks at your finances–your income, expenses, investments, and life circumstances–they can flag in advance anything that could cause an issue during tax season.

If you catch the issue early, you can create a plan to lower your liability throughout the remainder of the year, and offset as much of your tax liability as possible.

3: Plan for Retirement

It’s important to think about your retirement accounts now, to ensure you’re setting yourself up with a good safety net when the time comes to retire.

Your Tax Planning professional can help you understand your contributions and withdrawals, and how they impact your taxes–both today and in the future.

Schedule Your Appointment Today!

Planning in advance for tax season is the best way to ensure you are prepared when tax season rolls around. And it’s always better to work with a tax professional who is an experienced local.

We hope that you will consider Hoods Tax & Accounting for your Tax Planning needs in Goose Creek or Summerville, SC. Reach out at admin@hoodstax.com to schedule your appointment!

]]><![CDATA[Deductions vs. Credits: What’s the Difference?]]>Tue, 15 Jul 2025 04:00:00 GMThttps://www.hoodstax.com/tax-accounting-blog/deductions-vs-credits-whats-the-difference

If you’ve filed taxes, you’ve probably heard the terms “tax deduction” and “tax credit.”
But do you know what they actually mean?
Today, let’s talk about what deductions and credits are (and are not).

Tax Deductions and Credits Are Not the Same Thing

When people talk about deductions and credits, they sometimes use the two terms interchangeably. But the truth is, tax deductions are not the same thing as tax credits.
The difference is small, but important.

What Is a Tax Deduction?

A tax deduction is money that can be subtracted (or deducted) from the amount of your taxable income.
In other words, it reduces how much of your income can be taxed by the IRS.
Deductions can indirectly reduce the total amount of taxes that you owe because lower taxable income means a lower starting point for the calculation.

What Is a Tax Credit?

On the other hand, a tax credit applies directly to your due taxes.
This means that whatever taxes you are calculated to owe will then be reduced by the amount of your tax credit.
Tax credits are dollar-for-dollar, which means that if you owed $800, and you have a credit of $600, you will only owe $200.

How Does This Affect Your Refund?

Tax deductions and tax credits can both impact your refund in different ways.
A tax deduction changes your taxable income. If you underpaid on taxes throughout the year, this could reduce or eliminate owed taxes. But if you overpaid, you could receive a refund due to overpayment.
Tax credits work a little differently. Some tax credits are refundable, while others are structured as non-refundable.
Non-refundable credits will only ever reduce your owed taxes. This means if you owe $1,000 and you have a non-refundable credit of $1,300, you won’t owe taxes, but you also will not receive a refund of the extra $300.
However, some tax credits are refundable. For these refundable tax credits, any credit beyond what covers your owed taxes may be refunded to you.

Have More Questions?

We hope this helped you to better understand the differences between tax credits and tax deductions!
If you are local to Goose Creek, Summerville, or the surrounding areas of South Carolina, Hoods Tax & Accounting is here for you. We are proud to serve local families and small businesses in tax season and throughout the year.
For more information or to schedule an appointment, email us at admin@hoodstax.com.

]]><![CDATA[How to Create a Tax Document Organizational System]]>Sun, 15 Jun 2025 04:00:00 GMThttps://www.hoodstax.com/tax-accounting-blog/how-to-create-a-tax-document-organizational-system

In last month’s blog, one of our tips for getting prepared for next tax season was to create a new organizational system for your tax documents.
But do you know how to do that?
Today, we’re sharing some tips to help you get organized so you can feel confident when it’s time to file!

Have a Dedicated Space

Don’t just throw your documents into a drawer with other paperwork (or worse, toss them into a junk drawer).
Instead, choose a dedicated space JUST for your tax documents.
This could be a dedicated drawer, cabinet, small closet, or even a box. What matters most is that your tax documents won’t be lost in the shuffle of other things in the same space.

Categorize EVERYTHING

By creating categories for all of your documents, you’ll be able to easily determine where new documents should go. You’ll also be able to organize by category for easier navigation when you need to find something specific.
Some basic categories to get you started:

Income
Expense Receipts
Bank Statements
Credit Card & Loan Statements
Investment Records
Records of Charitable Contribution
Property Records
Past Tax Returns

You can use folders to keep each of these categories separated.

Keep Business and Personal Separate

If you are a business owner or have a ‘side hustle,’ remember to always keep your business and personal tax documents separate. This helps you stay out of trouble with the IRS.
We recommend creating entirely separate spaces for your personal and business tax documents, so nothing gets mixed up.

Label Everything Clearly

Make sure that as you organize, you are labeling things as clearly as possible.
If you can, use different colors to denote different categories. For example, you could use yellow folders for past tax returns, green for income, and red for expenses.
Label each folder in large, bold, easy-to-read letters to ensure you can flip through quickly to find what you’re looking for.

Keep Digital Copies

As you work to organize your documents, scan all documents (even individual receipts) to create digital copies of everything.
You can then use a similar organizational system for your digital documents, so that even if something happens, you can still access copies of all of your documentation.

Check In Regularly

Once you have your system in place, plan to check in on your tax documentation regularly to ensure everything is still organized and you aren’t forgetting to add new documents to the system.

Congratulations!

You now have an organized system for your tax documents. Next tax season, you will feel much more prepared to tackle the task of filing.
And remember, the team here at Hoods is always here to help.

]]><![CDATA[3 Ways to Prepare Now for Next Tax Season]]>Thu, 15 May 2025 04:00:00 GMThttps://www.hoodstax.com/tax-accounting-blog/3-ways-to-prepare-now-for-next-tax-season

Now that the 2024 tax filing season has come to a close, it’s time to think ahead.
Whether you were happy with how tax season went for your family or left your tax filing appointment feeling disappointed, there are things you can do now to prepare to have the best tax season possible next year.
So let’s talk about 3 ways that you can prepare NOW for next tax season.

1: Organize Your Documents

If you tend to spend the first few weeks of tax season digging through drawers and folders to find the documents you need, now is a good time to start reorganizing.
Create a simple, straightforward system for your tax documents. Set aside a drawer specifically for tax paperwork and get organized.
Don’t forget to check in with your tax preparer routinely to ensure you are keeping all the right documents!

2: Talk to Your Financial Planner

Do you have a financial planner or advisor? If so, this is a great time to talk to them about optimizing your finances for your tax situation!
Retirement plans, Health Savings Accounts (HSAs), College Savings Accounts (529s) and more can impact your taxes. Your financial professional can help you navigate your options and choose the combination that fits your family’s needs.

3: Invest in Tax Planning

The person who can best support you in preparing for a great tax season next year is your tax professional!
Here at Hoods Tax & Accounting, we offer a Tax Planning service throughout the year to help individuals, families, and businesses plan ahead for the next tax season.
Tax Planning can help you review your filing status, ensuring you are choosing the correct filing; get to know the credits and deductions you qualify for, potentially finding ones you didn’t even know about; adjust your W-4 tax withholding, so you are only withholding what is needed; plan for strategically-timed expenses to make the most of your deductions; and more!
Tax planning is the biggest gift you can give yourself as you prepare for next tax season. And we want to help you get the best results on next year’s return!
Reach out to our office at admin@hoodstax.com to schedule your first Tax Planning appointment with the Hoods team.

]]><![CDATA[Happy Tax Day 2025!]]>Tue, 15 Apr 2025 04:00:00 GMThttps://www.hoodstax.com/tax-accounting-blog/happy-tax-day-2025

We’re celebrating here at Hoods today. Do you know why?

It’s Tax Day!

For our office, Tax Day–or the final day to file your tax return without an extension–is a big day. It marks the end of the official tax season (although we will still be working on extended returns in the weeks to come).

But for you, here’s what it means:

What Does Tax Day Mean for Filers?

If you’ve already filed your tax return for 2024, Tax Day will primarily just mean that you will hear about taxes less–at least for a few months.
Taxes won’t be the biggest topic in the news, you won’t see as many ads (and scams) on social media, and you’ll generally just see LESS about the IRS. And isn’t that reason enough to celebrate?
But if you haven’t filed, Tax Day may not be such a celebratory moment for you.
If you’ve filed an extension on your 2024 tax return, don’t worry. Your extension protects you from the penalties of late filing. Keep in mind, however, that it does not protect you from the penalties of paying owed taxes late (if you think you may owe, talk to your tax preparer about your options).
But if you haven’t filed your return or an extension, Tax Day means that you will now begin receiving penalties and fees until you file and pay.

What Should I Do If I Haven’t Filed Yet?

If you have not yet filed for 2024, you have options.
First, you have until the end of the day today (April 15) to file an extension. If you haven’t yet done so, don’t wait.
Aside from filing an extension, the first thing you should do is speak to a professional. Your tax preparer can help you explore your best options and guide you through choosing the best path to get back on track.
If you do not yet have a tax preparer, our team here at Hoods would be happy to assist you. Reach out to us at admin@hoodstax.com and we will get in touch with you quickly to assess your situation.
We’re here for you!

]]><![CDATA[Don’t Wait–It’s Time to File Your 2024 Tax Return!]]>Sat, 15 Mar 2025 04:00:00 GMThttps://www.hoodstax.com/tax-accounting-blog/dont-wait-its-time-to-file-your-2024-tax-return

We’re halfway through March, and only one month away from Tax Day 2025. With the end of the season approaching, we wanted to check in and give you some information to help you as you work on filing your taxes.

Tax Season Ends on April 15th

The official end of tax season is only ONE MONTH away. Tax Day 2025 is happening on April 15.
In recent years, we have seen federal extensions on the end of tax season. We do not expect to see similar extensions this season, although there may be smaller state-specific or county-specific extensions for those who experienced extenuating circumstances (like wildfires or hurricanes) in 2024.
This may feel like plenty of time, but if you wait to file, you won’t have time to fix any issues that may arise.
Don’t wait. File now to avoid the stress of last-minute filing issues.

Extensions Are Available

If you aren’t sure you can finish filing by the April 15 deadline, now is the time to file an extension!
Filing extensions allow you to get your paperwork in order before filing your return.
But please note: if you will owe taxes, payment is still due on April 15, even if you file an extension. Any taxes owed that aren’t paid by Tax Day will receive penalty fees.

Hoods Tax & Accounting Is Still Accepting New Clients

If time got away from you and you’re now worried about the impending deadline, we’re here for you!
We are pleased to share that Hoods Tax & Accounting in Goose Creek, SC is still accepting new clients for the 2024 tax filing season. We will help you start your return, file extensions if needed, and ensure you get the best results possible despite your late start.
Please reach out to our office at admin@hoodstax.com to get started!

]]><![CDATA[The Child Tax Credit: What Is It and Who Is It For?]]>Sat, 15 Feb 2025 05:00:00 GMThttps://www.hoodstax.com/tax-accounting-blog/the-child-tax-credit-what-is-it-and-who-is-it-for

As we navigate tax season, we’re having a lot of conversations about the Child Tax Credit. Every family hopes to claim it, but how much do you actually know about it?

Today, let’s talk about what the Child Tax Credit is, who it is for, and how it works.

But First, What Is a Tax Credit?

A tax credit is a reduction that can be applied to your tax return. It directly reduces the amount of money you owe in taxes.

Some tax credits are refundable, while others are non-refundable.

What Is the Child Tax Credit?

The Child Tax Credit, or CTC, is a tax credit extended by the U.S. government to help families with qualifying children lower their taxes. It is designed to extend financial relief to families who have higher expenses due to the costs of raising children.

Who Qualifies?

For the purposes of the Child Tax Credit, a qualifying child:

Was under 17 years old at the end of the tax year (in this case, 2024)
Is, in relation to the filer, their son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of one of these (for example, a grandchild, niece or nephew).
Did not provide more than half of their own financial support for the tax year in question.
Lived with the filer for more than half of the tax year.
Must be claimed as a dependent on the filer’s taxes.
Is a U.S. citizen, National, or resident alien.
Cannot file a joint return for the tax year, except to claim a refund of withheld or estimated taxes.
Has a Social Security Number that is valid for employment and issued before the due date of your tax return.

How Much Is the 2024 Child Tax Credit?

For the tax year 2024, the maximum credit that can be claimed per child is $2,000. In 2025, this number will be updated to $2,200 per child.

How Do I Claim It?

The Child Tax Credit can be claimed by entering your qualifying children and dependents on your Form 1040, then filling out and attaching a Schedule 8812. Schedule 8812 is also known as “Credits for Qualifying Children and Other Dependents.”

Want support in filing your 2024 tax return? We would love to support you! At Hoods Tax & Accounting, our tax professionals are experienced and local to Goose Creek and Summerville, SC. Email us at admin@hoodstax.com to schedule an appointment with a local you can trust.

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