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Personal Finance

Personal money management and financial wellness strategies

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May 14, 202613 min read

Adoption Tax Credit Under Section 23 in 2026: Claiming Up to $17,670 on Form 8839 for Domestic, Foreign, Special Needs, and Failed Adoptions

For tax year 2026, the federal Adoption Tax Credit caps at $17,670 per eligible child, with up to $5,120 refundable and a five-year carryforward on the nonrefundable remainder. This guide explains Form 8839, the timing rules for domestic, foreign, special needs, and failed adoptions, MAGI phase-out between $265,080 and $305,080, and how to coordinate with employer-provided adoption assistance under Section 137.

Mike Thrift

tax-creditstax-planningtax-compliance

May 14, 202614 min read

Direct Indexing for Tax-Loss Harvesting in 2026: The Loss Machine ETFs Cannot Build

US direct indexing harvests losses stock-by-stock in an SMA — wash-sale rules and tax alpha ETFs cannot match in 2026.

Mike Thrift

direct-indexingtax-loss-harvestingtax-planning

May 14, 202613 min read

First-Party d(4)(A) vs. Third-Party Special Needs Trusts: Protecting SSI, Medicaid, and a Disabled Loved One's Future

A planning guide to first-party (d)(4)(A), third-party, and (d)(4)(C) pooled special needs trusts. Compares the Medicaid payback obligation, the under-65 statutory cutoff, allowable trust disbursements, the 2024 SSA change that removed food from ISM, and how a 2026 ABLE account complements an SNT without replacing it.

Mike Thrift

trustestate-planningfiduciary

May 14, 202614 min read

The U.S. Exit Tax in 2026: How Form 8854 and Section 877A Tax You on the Way Out

Section 877A treats covered expatriates as if they sold every asset the day before leaving the United States. For 2026 the net-tax threshold is $211,000, the net-worth test sits at $2 million, and the gain exclusion is $910,000 — here is how Form 8854 decides whether you pay.

Mike Thrift

taxtax-compliancetax-planning

May 14, 202611 min read

Form 8889 in 2026: HSA Reporting Without Triggering the 6%, 10%, or 20% Penalty

A 2026 walkthrough of Form 8889 — HSA contribution limits ($4,400 self-only, $8,750 family), the triple tax advantage, the last-month rule's 13-month testing period, the Medicare six-month retroactive enrollment trap, and the six most common filing mistakes that trigger the 6% excess-contribution excise tax, 10% recapture, or 20% non-qualified-distribution penalty.

Mike Thrift

taxtax-compliancetax-planning

May 14, 202612 min read

HSA vs FSA vs HRA in 2026: Stack a Limited-Purpose FSA With Your HSA and Beat the Use-It-or-Lose-It Trap

2026 rules for HSAs, FSAs, and HRAs — contribution limits, who owns each account, when each one wins, how to stack a Limited-Purpose FSA with an HSA without breaking eligibility, and how employees and employers avoid forfeitures.

Mike Thrift

healthcarehealth-insurancetax-planning

May 14, 202611 min read

HSA vs FSA vs HRA in 2026: The Practical Playbook for Picking, Stacking, and Not Forfeiting Your Health Dollars

A 2026 walk-through of HSA, FSA, and HRA rules with the new contribution limits, the limited-purpose FSA stack that adds up to $7,800 of pre-tax room, and how small employers can use ICHRA and QSEHRA to compete with corporate benefits.

Mike Thrift

healthcarehealth-insurancetax-planning

May 14, 202611 min read

The Mega Backdoor Roth Playbook: How High Earners Can Funnel an Extra $47,500 Into Tax-Free Retirement Accounts in 2026

The mega backdoor Roth routes up to $47,500 of after-tax 401(k) contributions into a Roth bucket for 2026, on top of the standard $24,500 employee deferral, by converting after-tax dollars through an in-plan Roth conversion or in-service distribution to a Roth IRA. The IRS Section 415(c) total cap of $72,000 ($80,000 if age 50+) covers contributions from all sources combined, and converting promptly keeps the taxable earnings drag near zero.

Mike Thrift

retirement-plansretirement-savingstax-planning

May 14, 202611 min read

The $2 Million Mistake: Why Gifting Appreciated Stock to Your Kids Can Be Worse Than Doing Nothing

A practical guide to Section 1015 carryover basis versus Section 1014 stepped-up basis, the dual basis trap for depreciated assets, and the 2026 decision framework for whether to gift appreciated property now or hold until death under the permanent $15 million exemption.

Mike Thrift

estate-planningtax-planningcapital-gains

May 14, 202616 min read

Section 165(i) Disaster Loss Election: Pulling Casualty Losses Into the Prior Year for a Faster Refund

How Section 165(i) lets taxpayers in federally declared disaster areas deduct casualty losses on the prior year's return via Form 4684 and Form 1040-X — election mechanics, the six-month deadline, safe-harbor valuations, and when the prior-year election actually beats waiting.

Mike Thrift

taxtax-deductionstax-planning

May 14, 202611 min read

The $7,500 EV Tax Credit Is Gone: What 2026 Car Buyers Need to Know About Section 30D's Sudden Sunset

The federal $7,500 clean vehicle credit ended September 30, 2025 under the OBBBA—seven years early. Section 30D's binding contract exception, dealer transfer recapture risk, Form 8936 filing for 2025 acquirers, state replacement programs, and what 2026 EV buyers should expect.

Mike Thrift

taxtax-creditstax-planning

May 14, 202611 min read

Section 30D Clean Vehicle Credit Sunset: What 2026 EV Buyers Lost and Who Can Still Claim the $7,500

The Section 30D EV tax credit ended September 30, 2025, seven years early under OBBBA. Buyers with a written binding contract and nominal payment before that date can still claim up to $7,500 on a 2026 delivery. This guide covers the acquisition rule, Form 8936 filing, point-of-sale transfer recapture risk, and what survives for used (25E), commercial (45W), and charging-infrastructure (30C) credits.

Mike Thrift

taxtax-creditstax-planning

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