Brew City Accounting & Tax

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Brew City Accounting & Tax Brew City Accounting & Tax helps individuals and small businesses navigate taxes and accounting with expert guidance, clear answers, and year-round support.

Services: tax preparation, planning, advisory, tax problem support, accounting and bookkeeping. Brew City Accounting & Tax helps individuals, entrepreneurs, and small businesses navigate tax and accounting needs with expert guidance, clear communication, and year-round support. Services include tax preparation, tax planning, advisory, tax problem support, and accounting and bookkeeping.

Educators Have New Options to Deduct 2026 Classroom Expenses – Did You Know?If you work as a K–12 teacher, instructor, c...
10/19/2026

Educators Have New Options to Deduct 2026 Classroom Expenses – Did You Know?

If you work as a K–12 teacher, instructor, counselor, principal or aide for at least 900 hours during the school year at a qualifying school, you may be able to deduct qualifying unreimbursed classroom expenses on your tax return.

For 2026, eligible educators may deduct up to $350 of qualifying expenses as an above-the-line deduction without itemizing, or up to $700 for a married couple filing jointly if both qualify, with a limit of $350 each.

Additionally, a new itemized deduction is available beginning in 2026 for educator expenses, with no separate dollar cap. You must itemize deductions to claim this additional deduction. It is also available to interscholastic sports administrators and coaches who meet the K–12 school and 900-hour requirements, and may cover additional expenses.

Eligible educators may claim both deductions, as long as the expenses used to figure each deduction do not overlap. A tax professional can help you determine whether you qualify and which deduction strategy yields the greatest possible tax savings.

October 15 Filing Extension DeadlinesTaxpayers who timely requested an extension to file their 2025 federal income tax r...
10/12/2026

October 15 Filing Extension Deadlines

Taxpayers who timely requested an extension to file their 2025 federal income tax returns generally must file by Thursday, October 15, 2026. The same deadline generally applies to calendar-year C corporations that received an extension to file their 2025 corporate returns (Form 1120).

In addition, U.S. persons with a financial interest in or signature authority over foreign financial accounts whose combined value exceeded $10,000 at any time during 2025, and who are required to file a Report of Foreign Bank and Financial Accounts (FBAR), generally must file by October 15, 2026. The FBAR extension is automatic; no extension request is necessary.

Up to $5,120 of the Adoption Tax Credit Is Refundable for 2026 – Did You Know?The Adoption Tax Credit helps eligible fam...
10/05/2026

Up to $5,120 of the Adoption Tax Credit Is Refundable for 2026 – Did You Know?

The Adoption Tax Credit helps eligible families manage qualified costs such as adoption fees, travel, legal services and home studies. In recent years, the credit was nonrefundable: it could reduce a person's federal income tax, but any unused amount generally had to be carried forward.

Under rules that took effect in 2025, part of the credit is now refundable. For tax year 2026, up to $5,120 per eligible child may be refundable, even if the taxpayer owes no federal income tax. Any unused nonrefundable portion may be carried forward for up to five years, but a carryforward cannot become refundable in a later year.

The Adoption Tax Credit is subject to income limits and other restrictions, and the timing of a claim depends on the circumstances of the adoption. A tax professional can help determine whether you qualify and how much credit you may claim.

If your extended return is still waiting on “a document,” name the document.For many individual taxpayers, October 15 is...
09/28/2026

If your extended return is still waiting on “a document,” name the document.

For many individual taxpayers, October 15 is the extended filing deadline. Certain taxpayers in designated Wisconsin disaster areas have eligible federal deadlines postponed to November 2, 2026. Confirm which deadline applies to you; vague follow-up gets harder as your deadline approaches.

Instead of “I’m still waiting on something,” write down:
• the exact form or record;
• who is supposed to provide it;
• whether a corrected version is expected;
• whether an available transcript or other record may help confirm what was reported; and
• whether the missing item prevents the return from being filed completely and accurately.

A vague missing document is hard to chase. An exact one gives you a next action.

Do not fill a gap with a guess just because the deadline is close. Identify what is missing, follow up on it and leave enough time to decide the correct filing approach.

By the time I prepare a 2026 tax return, 2026 is already over.That sounds obvious, but it is the reason fall tax plannin...
09/26/2026

By the time I prepare a 2026 tax return, 2026 is already over.

That sounds obvious, but it is the reason fall tax planning can matter.

If your year included a large income change, business growth, retirement distributions, investment activity, a property transaction or another major financial move, there may be decisions worth looking at before December 31 — while the year is still open.

Sometimes the answer is that nothing needs to change. That is useful information too.

A better fall question than “How do I get another deduction?” is:

“What changed this year, what does it mean for my taxes, and is there anything I still have time to do?”

That is planning. Not predicting the future — understanding the choices that are still available before the year closes.

If you are expecting every dollar of overtime you earn in 2026 to become tax-free, that is not how the new federal rule ...
09/21/2026

If you are expecting every dollar of overtime you earn in 2026 to become tax-free, that is not how the new federal rule works.

Here is a simple example.

If your regular rate is $20 an hour and qualifying overtime is paid at $30 an hour, the new deduction generally relates to the $10 overtime premium — the amount above your regular rate — not the full $30 of overtime pay.

There are also limits. The maximum annual federal deduction is $12,500 for an individual or $25,000 on a joint return, and the deduction begins to phase out at higher income levels. Other eligibility rules apply as well.

So “no tax on overtime” is a useful headline, but not a complete explanation of the law.

Save your payroll records. The details of how the overtime was earned and reported matter when the return is prepared.

Tax work has become a lot more digital. That can be a good thing — when the technology actually makes the experience eas...
09/19/2026

Tax work has become a lot more digital. That can be a good thing — when the technology actually makes the experience easier for people.

At Brew City Accounting & Tax, we use technology and documented processes to keep work organized, reduce things falling through the cracks and make communication clearer.

But a portal is not a relationship.

People should still know who is helping them, what is happening with their tax work and what comes next.

We are a locally owned, tax-focused firm in Muskego, and the goal as we improve our systems is pretty simple: become more organized without becoming less personal.

When I look at an IRS notice, I do not start with how scary the envelope looks.I want to know:• What notice or letter is...
09/17/2026

When I look at an IRS notice, I do not start with how scary the envelope looks.

I want to know:
• What notice or letter is it?
• What tax year is involved?
• What does the IRS say changed or needs attention?
• Is there a response or payment deadline?

If a notice shows up in your mailbox, start here:

1. Read the whole letter — not just the amount in bold.
2. Find the CP or LTR number and the tax year.
3. Compare the notice with the return and records it relates to.
4. Put the response or payment deadline on your calendar.
5. Keep the notice and gather the documents connected to the issue.

Some IRS notices are informational. Others require a response, payment or disagreement by a specific date. The letter itself tells you what problem you are actually dealing with.

If the instructions are unclear, have the notice reviewed before the deadline passes. Guessing from the envelope is not a tax strategy.

Last week, we shared that Brew City Accounting & Tax owner Stephen Shelly earned the Enrolled Agent (EA) credential. But...
09/15/2026

Last week, we shared that Brew City Accounting & Tax owner Stephen Shelly earned the Enrolled Agent (EA) credential. But what does that actually mean? An Enrolled Agent is a federally licensed tax professional, and the IRS describes EA status as the highest credential it awards. Enrolled Agents have unlimited practice rights before the IRS, allowing them to represent taxpayers in matters such as audits, payment and collection issues, and appeals. They must also follow federal ethical standards and complete ongoing continuing education.

For our clients, the credential is about more than responding after a tax problem appears. It strengthens the year-round support we are building at Brew City Accounting & Tax—from preparing returns and planning ahead to understanding the tax impact of decisions and providing representation when an IRS issue arises.

Learn more: https://www.brewcityaccounting.com/Enrolled-Agent

If you make federal estimated tax payments, tomorrow matters: September 15 is the next scheduled individual estimated-ta...
09/14/2026

If you make federal estimated tax payments, tomorrow matters: September 15 is the next scheduled individual estimated-tax payment date for most taxpayers. Certain affected Wisconsin disaster-area taxpayers have eligible federal estimated-tax deadlines postponed to November 2, 2026, so confirm which deadline applies to you.

Before you send it, check three things:
1. Is the payment amount the one you intended to make?
2. Do you know how you are paying it?
3. Has your income changed enough that the old projection deserves another look?

That third question matters for business owners and anyone with income that moves around during the year. An estimate is based on assumptions. Your year may not have followed them.

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S76W17603 Janesville Road
Muskego, WI
53150

Opening Hours

Monday 9am - 5pm
Tuesday 9am - 5pm
Wednesday 9am - 5pm

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