July Newsletter

Tax Benefits for Homeowners

Breaks You Might be Missing

Homeowners may be eligible for several valuable tax benefits that can make a real difference at filing time. If you own your home, you might qualify for deductions on mortgage interest, points paid on a mortgage, and real estate taxes. Those who made energy-efficient improvements or installed renewable energy systems, such as solar panels, may also be able to claim residential clean energy credits. These tax advantages not only ease your financial burden but also reward environmentally conscious upgrades.

It’s important to understand the eligibility criteria and how each benefit applies to your situation. For instance, to deduct mortgage interest, your loan must be secured by your main or second home, and there are limits on the loan amount. Meanwhile, the clean energy credit has no income limits and can be carried forward if it exceeds your tax owed. Homeowners should consider keeping thorough records and consulting a tax professional to make sure they receive all the benefits they’re entitled to.

Update on the PCAOB Dissolution

The PCAOB Remains Intact

A recent Senate decision has removed a controversial provision from a House-passed budget bill that would have eliminated the Public Company Accounting Oversight Board (PCAOB). The PCAOB plays a vital role in maintaining trust in U.S. capital markets by overseeing the audits of public companies and protecting investors. The Senate parliamentarian ruled that this provision did not meet the requirements to be included in a budget reconciliation bill, which must strictly pertain to spending or revenue.

This decision preserves the PCAOB’s independent oversight function, which many in the accounting profession view as essential to maintaining audit quality and public confidence. Professional organizations like the AICPA welcomed the outcome, emphasizing the importance of regulatory stability in financial reporting. While budget debates continue, the integrity and oversight that the PCAOB provides remain secure — for now.

Washington Families Tax Credit

Refunds Surpass Last Year’s Total in Five Months

The Washington State Department of Revenue reports that Working Families Tax Credit (WFTC) refunds have already surpassed last year’s total — and it’s only June. More than 187,000 applicants have received over $109 million in refunds within the first five months of 2025. This milestone highlights the growing awareness and reach of the program, which was launched to provide meaningful financial relief to low- to moderate-income individuals and families across the state.

The WFTC offers up to $1,255 depending on family size and income, and it’s available to both U.S. citizens and certain immigrants, including ITIN filers. The Department of Revenue encourages eligible households to apply before the December 31 deadline. With a simple online application and multilingual support available, the program continues to be an accessible and impactful resource for working families in Washington.

Washington State Capital Gains

Collections for 2024 Exceeds $560.6 Million

Washington state has collected over $560.6 million in initial Capital Gains Tax payments for tax year 2024, marking a strong second year for the new tax. The Capital Gains Tax applies to the sale or exchange of long-term capital assets—such as stocks and bonds—above $250,000, with certain exemptions. The revenue supports education and early learning programs across the state, aligning with Washington’s goals of equitable investment in future generations.

The Department of Revenue noted that nearly 4,700 taxpayers filed returns by the April 15 deadline, and over $41 million in credits were applied. The department will continue reviewing returns and processing payments throughout the year. These early results reflect improved taxpayer compliance and understanding, as well as the state’s commitment to funding vital public services through progressive revenue tools.

Minimum Wage Increases as of July 1st, 2025

Will Your Payroll be Affected?

Several states and localities across the U.S. are set to implement minimum wage increases effective July 1, 2025. These midyear adjustments reflect ongoing efforts to align wages with the cost of living and regional economic conditions. Notable changes include increases in cities such as Chicago, which will implement a uniform minimum wage for all employers, and Washington D.C., where both standard and tipped wage rates will rise. These changes affect a range of employers, particularly in hospitality and service industries.

Business owners should take this opportunity to review employee pay rates, update payroll systems, and ensure compliance with all local wage laws. It’s also important to communicate any changes to staff and maintain proper documentation. Staying current with wage updates not only ensures legal compliance but also fosters employee trust and retention.

The ETAAC’s Annual Report is In

With Recommendations for Congress and the IRS

The Electronic Tax Administration Advisory Committee (ETAAC) has released its 2025 Annual Report, offering strategic recommendations to both Congress and the IRS on how to improve the nation’s electronic tax administration. The report emphasizes continued investment in IRS modernization efforts, expanded digital services for taxpayers and tax professionals, and stronger cybersecurity measures. ETAAC also highlights the importance of clear communication and accessibility in helping taxpayers navigate the evolving digital landscape.

Among its 11 recommendations, the committee urges support for the IRS Direct File pilot and increased funding to expand its reach. The report also recommends streamlining identity verification processes and enhancing tools that support low-income and underserved communities. With over two decades of partnership, ETAAC’s insights continue to play a key role in shaping a more efficient, secure, and taxpayer-friendly IRS.