Lembo Accounting Solutions

10/08/2026

⚠️ Taking money from your traditional IRA or inherited IRA?

Check the impact on your health insurance first!

If you have Marketplace insurance through HealthCare.gov, the taxable portion of an IRA withdrawal counts toward the annual household income used to calculate your insurance subsidy—even if it’s a one-time withdrawal.

That extra income can:
• Increase your income taxes.
• Reduce or eliminate your insurance subsidy, increasing what you pay for coverage.
• Require you to repay excess subsidies when you file your tax return.

Important for 2026: There is no repayment cap on excess advance premium tax credits. If you receive more assistance than you qualify for, you must repay the full excess amount when filing your 2026 return in 2027.

For example, if your expected household income is $45,000 and you take a fully taxable $20,000 IRA withdrawal, your income for Marketplace purposes generally rises to $65,000. That can change your insurance savings for the year.

Before withdrawing retirement funds to pay bills, renovate your home, or make a large purchase, ask your tax professional to calculate the combined tax and insurance impact. If your income changes, update your Marketplace application promptly.

A little planning now can help prevent an expensive surprise at tax time.

Linnea Lembo, CPA
Lembo Accounting Solutions

09/23/2026

💍 **Thinking about filing Married Filing Separately? Read this first.**

“Married Filing Separately” sounds simple — you each file your own tax return. But choosing MFS can mean giving up some valuable tax deductions and credits.

For **2025 federal tax returns**, filing separately can affect or eliminate:

❌ Student loan interest deduction
❌ American Opportunity Tax Credit
❌ Lifetime Learning Credit
❌ Qualified tips deduction
❌ Qualified overtime deduction
❌ New senior deduction
❌ Child & Dependent Care Credit in many situations
❌ Adoption credit in most situations
❌ Education savings bond interest exclusion

There are other limitations too:

💰 Your capital loss deduction is generally limited to **$1,500 instead of $3,000**.

🏦 IRA and Roth IRA rules can become significantly more restrictive, especially if you lived with your spouse during the year.

📋 If your spouse itemizes deductions, **you generally have to itemize too** — even if taking the standard deduction would otherwise be better for you.

👶 Some credits, including the Child Tax Credit and Saver’s Credit, may still be available, but different income limitations can apply.

**Does that mean Married Filing Separately is always a bad choice? No.**

There are situations where filing separately may make sense. The important part is understanding the tax consequences before making the decision.

When we prepare a married couple’s return, the filing status is more than just checking a box — sometimes it’s worth comparing the numbers.

09/08/2026

🚨 SOUTH CAROLINA PARENTS — THE 529 PLAN JUST GOT A LOT MORE INTERESTING IN 2026! 🎓💰

If you thought a 529 was only for saving for college someday… take another look.

The rules have expanded significantly, and for many SC families, a 529 may now be useful for expenses they’re already paying.

💙 THE SOUTH CAROLINA TAX PERK

Contribute to a South Carolina Future Scholar 529 Plan and your contribution may be deductible on your South Carolina income tax return.

And YES — it’s September. It’s not too late to open and fund one for 2026!

🎒 THE BIG 2026 CHANGE: K–12 EXPENSES

Beginning in 2026, 529 funds can be used for up to $20,000 per student per year for qualified K–12 expenses — and it’s no longer limited to just tuition.

Qualified expenses can now include things such as:

📚 Books & curriculum
💻 Computers, software & educational technology
📝 Tutoring
📋 Standardized testing fees
🎓 Dual-enrollment / college-course fees
🏫 Certain educational therapies for students with disabilities
👕 Required school uniforms
…and other qualifying educational expenses.

And, of course, 529 funds can still be incredibly valuable for college, trade/vocational programs and other qualifying post-secondary education expenses.

💡 WHY THIS MATTERS FOR SC FAMILIES

You may be able to:

➡️ Put money into a Future Scholar 529
➡️ Receive a South Carolina income tax deduction for the contribution
➡️ Use the money for qualifying education expenses
➡️ Receive tax-free growth and tax-free qualified withdrawals

You don’t necessarily have to start a 529 when your child is a baby and wait 18 years to benefit from it.

The 2026 expansion has made 529 plans worth another look for families with children already in elementary, middle or high school.

⚠️ As always, keep receipts and make sure the expense meets the 529 qualified-expense rules. Your individual tax situation matters.

— Linnea Lembo, CPA
Lembo Accounting Solutions

Educational information only; not individualized tax advice.

09/04/2026

🚨 SOUTH CAROLINA TAXES JUST CHANGED FOR 2026 — and income matters!

SC has a NEW state income tax system beginning in 2026, including a new South Carolina Income Adjusted Deduction (SCIAD).

Here’s the easy version 👇

💰 NEW SC DEDUCTION

👤 Single / MFS: $15,000
👨‍👩‍👧 MFJ: $30,000
🏠 Head of Household: $22,500

BUT…these deductions phase out as your income increases. 👀

📉 PHASE-OUT RANGES (Federal AGI)

👤 Single / MFS
Starts: $40,000
Gone at: $95,000

🏠 Head of Household
Starts: $60,000
Gone at: $142,500

👨‍👩‍👧 Married Filing Jointly
Starts: $80,000
Gone at: $190,000

And there’s another BIG change:

🌴 SC now has TWO income tax rates

➡️ Under $30,000 of SC taxable income: 1.99%
➡️ $30,000+: 5.21% (with a $966 adjustment)

⚠️ South Carolina also decoupled from the federal standard AND itemized deductions.

Translation: Your 2026 South Carolina tax return is going to look VERY different!

If your income falls inside one of those phase-out ranges, tax planning just became a little more important.

Welcome to SC taxes in 2026! 🌴🧾

— Linnea Lembo, CPA

General tax information only. Individual tax situations vary.

09/04/2026

🎓 529 PLANS: THEY’RE NOT JUST FOR COLLEGE!

The rules have expanded for 2026. Here’s the quick version 👇

🏫 K–12 — UP TO $20,000/YEAR

529 funds can be used for qualifying:

✅ Tuition
✅ Books & instructional materials
✅ Curriculum & online learning
✅ Certain tutoring & educational classes
✅ Certain testing & dual-enrollment fees

🚨 Boarding school?
Academic tuition may qualify — but room & board does NOT.

🎓 COLLEGE — MUCH MORE IS COVERED

529 funds can generally pay for:

✅ Tuition & required fees
✅ Books & supplies
✅ Computers, software & internet
✅ Room & board for eligible students
✅ Certain expenses for special-needs services

💡 THE BIG DIFFERENCE

🏫 K–12 → $20,000 annual limit + NO room & board

🎓 College → No $20,000 K–12 cap + room & board can qualify

Have a 529? It may be worth looking at it as more than just a college savings account.

📌 Save this post for back-to-school planning!

General tax information only. Qualified-expense rules and limitations apply.

09/03/2026

📣 Charitable Giving Has New Tax Rules for 2026!

If you donate to charity, there are two important changes to know this year:

1️⃣ New 0.5% floor for itemized charitable deductions

If you itemize deductions, your charitable contributions are now deductible only to the extent they exceed 0.5% of your Adjusted Gross Income (AGI).

👉 Example:
AGI = $100,000
0.5% = $500

If you donate $2,000, the first $500 does not generate an itemized charitable deduction. Your deductible amount would generally start with the remaining $1,500.

2️⃣ Don’t itemize? You may still get a charitable deduction! 🎉

Beginning in 2026, taxpayers who take the standard deduction can deduct qualifying cash contributions to eligible charities:

💰 Single filers: Up to $1,000
💰 Married Filing Jointly: Up to $2,000

This is an above-the-line deduction, so you don’t have to itemize to benefit.

⚠️ Remember: Keep documentation for your donations, and not every type of charitable contribution qualifies for the non-itemizer deduction.

Tax planning isn’t just about what you earn—it’s also about understanding which deductions are actually available to you.

Lembo Accounting Solutions, CPA

07/28/2026

Tax Free Weekend starts August 7

South Carolina's Tax Free Weekend is almost here! This year, the event will run from August 7 through August 9.

Why it matters: During this weekend, retailers cannot charge state or local Sales Tax on school supplies, computers, clothing, and other essentials.

All purchases of eligible items are tax exempt, including:
• In-store and online sales
• New and used items

Businesses should plan ahead! Our Retailer Toolkit can help you:

• Determine if you sell tax-exempt items
• Promote your store during Tax Free Weekend
• Prepare to report your sales on your August tax return
• Learn how to handle returns, exchanges, and rain checks

07/25/2026

Now Accepting One New Business Client for August

At Lembo Accounting Solutions, we believe business owners deserve more than someone who simply prepares a tax return once a year.

Our ideal client relationship includes:

📊 Monthly Bookkeeping
📑 Business Tax Preparation
👤 Personal Tax Preparation

When these three services work together, we're able to provide proactive advice throughout the year—not just at tax time. Clean books lead to better financial decisions, fewer surprises, and more effective tax planning.

If you're a business owner who's ready for a CPA who takes the time to understand your business and values year-round communication, we'd love to connect.

Or, if you know a business owner who is looking for a trusted bookkeeping and tax partner, we'd be grateful if you shared this post or made an introduction.

📍Based in Mount Pleasant, South Carolina
💻 Serving clients remotely throughout the United States

At Lembo Accounting Solutions, we're boutique by design—providing personalized service, responsive communication, and a long-term partnership that helps businesses grow with confidence.

📩 Send us a message to schedule a conversation and see if we're the right fit for your business.

07/20/2026

🚨 Has your accountant disappeared? 👻

If your 2025 tax return was extended and you've been waiting... and waiting... with no communication, you're not alone.

Unfortunately, every year we hear from individuals and business owners who:
• Can't get a return phone call or email.
• Have no idea where their tax return stands.
• Are worried they'll miss the extension deadline.
• Feel completely in the dark.

You still have options.

At Lembo Accounting Solutions, we're currently accepting a limited number of new tax clients who need help getting their extended 2025 returns completed before the filing deadline.

Whether your current accountant has become unresponsive or you're simply ready for a better experience, we're here to help.

✅ Prompt communication
✅ Secure online document portal
✅ Clear expectations and timelines
✅ Experienced tax preparation for individuals and businesses

Don't wait until the last minute and hope your return gets finished.

📞 Reach out today to schedule a consultation and let's make sure your 2025 tax return is completed accurately and on time.

07/13/2026