Confused by Tax Changes? What’s the ONE Thing You Must Know?

Speaker A00:00:27

Hey, let's take a breath for a moment, because today we're talking about something that stresses almost everyone out, and that's taxes. Especially when the rules keep changing. If you're confused by the new tax changes, you're in good company.Every single year, the IRS shifts something. Brackets move, deductions change, credits get added or taken away. And you start wondering, how am I ever supposed to keep up with all this?But here's the part that people never hear. You don't need to understand every new rule. You just need to understand one thing.Just one simple thing that will protect you from surprise tax bills. Those unexpected IRS letters and, hey, nobody wants those. And that awful April anxiety.And the next few minutes, I'm going to show you exactly what that one thing is and how you can give it more peace all year long. Welcome back. I'm Ralph, and if you're new here, welcome home.This is Financially Confident Christian, where we talk about faith, we talk about finances, we talk about peace, and how to become a faithful steward of everything God puts in your hands. And today's episode is all about clarity. Because tax confusion doesn't just create frustration. It can steal your peace. It can steal your confidence.And let's be honest, it steals the joy God wants you to walk in. But it doesn't have to do that. Not for you, not this year. Let's break this down in a way that makes sense. I received a message that said this, Ralph.Every year, the tax rules change, the bracket shifts, credits disappear, and new ones pop up. I just want to keep things simple. I just want to be prepared. How do I do this without getting overwhelmed? Listen, I hear that a lot.I hear that from clients. I hear that from friends. I hear that from everyday people who generally just want to do the right thing.I think most people, when it comes to taxes, they want to do the right thing because they don't want that dreaded IRS notice or, hey, heaven forbid, that IRS audit. And that question right there is exactly why this episode matters.So let's talk about what you're really feeling, because before we get into the details, let's name the emotion behind all this. Taxes can feel like a moving target for so many people. Now I'm a tax expert. For me, it just makes sense.But for so many people, right when you finally understood something, guess what happens? The IRS changes it again. But here's what I want you to hear, loud and clear.Complex doesn't have to mean confusing, and you don't have to feel overwhelmed all the time. A Few simple adjustments can give you a whole lot of peace. Let's talk about first, what actually changes each year? Let's take the mystery out of it.Every single year, these things shift. These are guaranteed things. The tax brackets are going to change. That's how we figure out what tax rate you pay.The standard deduction changes every single year because they do what's called indexing for inflation. They give you a little bit more deductions.Oftentimes credit amounts change, although that's always not the case in this year with the big beautiful bill, there are some credit changes in many years, income thresholds change and phase out changes. Now in if you're self employed or retired, these changes can hit your return even harder. So that's why you've really got to understand this.So here's the line that really frames this whole episode. Today, clarity today beats surprise tomorrow. It's simple as that. And here's why. You can trust what I'm about to share. You're not guessing.You're learning from my experience. Listen, I've been a licensed accountant for over 30 years. I spent my days translating IRS language. And listen, that can be some crazy stuff.I but I've spent my days translating that into normal human language so real people, just like you, can make real decisions without stressing themselves out. And I've helped thousands avoid those surprise tax bills in January by making just tiny adjustments that take less than five minutes.My goal here isn't to impress you, it's to guide you. Well, let me get real for an example. This brings it all together. A client once told me she hated tax season. I'm talking about she hated tax season.And the reason she hated it, because every year felt unpredictable. She never knew what she was walking into when she came into my office. So I sent her this simple one page summary of the new tax changes.Now, she didn't have to study it. She didn't go down a rabbit hole of understanding every single thing on it. She just read it. And when she read it, she noticed one credit had changed.And when she saw that, she adjusted her withholding. And then she checked again mid year. And, and when April came, guess what? No scramble, no panic, no surprise. Bill.And when she came in to see me, she said, ralph, that was the calmest tax season I've ever had. Well, that's how powerful a little awareness can be. So now you might be asking, ralph, how do I do this? Let's keep it simple.Here's four steps to stay prepared without overwhelm. Step Number one, check your bracket and standard deduction. These are the two numbers that affect almost everyone.And you can take just two minutes to avoid that classic April question. Because listen, I hear this every April, Ralph. Why do I owe more this year? That's because you don't understand those two numbers.And those two numbers will give you instant clarity. So check your bracket and your standard deduction. Second thing, you've got to review the credits that apply to you because here's the truth.Credits change more often than deductions. Generally, deductions don't change that often, but credits do, and they can swing your refund instantly.I see this all the time with people whose children get to be age 17 and they've gotten that child tax credit of a couple thousand dollars up to this point. Then all of a sudden they come in and I'm like, okay, well your credit this year is only 500. Like, Ralph, what happened?And I said, remember I warned you last year when your kids turn 17, that credit changes. So understand the common ones. Like I just talked about the child tax credit. Education credits change. There are income phase out limits.Maybe your kids graduate from college. There are energy credits. That energy credit thing, I'm going to tell you right now, it gets crazy. It seems to change every year.There's a savers credit and this one is a new one. There's going to be some new elderly, Social Security and disability credits.Well, if you know which ones apply to you, it keeps you from missing benefits that God already provided through the tax code. And yes, God provides you benefits through the tax code.Let's move on to number three and I'm going to take a minute to talk about if you're self employed. A lot of the people that tune into the show are self employed. They're small business owners.So if you're self employed, this is a great time to revisit your quarterlies, make sure you've been making those payments, revisit your deductions, make sure you've got your books in order, check your mileage. Maybe you need to buy some equipment, maybe you need to take a deduction for some things. Look at your home office rules and listen to me.Make sure you've made those quarterly estimated taxes, that you're ready for tax time because that one step prevents a year of stress.And last but not least, number four, adjust your withholding or contributions now because you can make a tiny tweak right now in December that can create a huge amount of common April. Because here's the thing, I've learned over 30 years in practice, most surprise tax bills come from withholding mistakes, not income changes.It's really that simple. And here's a special shout out to my retired folks.If you're retired, this is, this is a great time to check on your Social Security, your pensions and your retirement withdrawals. First of all, make sure you're adequately preparing estimated tax for that.And listen, if you've got a retirement account and you've gotta take what they call an RMD required minimum distribution, make sure you're reaching out to your broker right now in December to make sure that's fixed. Because if you fix it now, you won't be anxious later. Let's anchor this spiritually because this isn't just about money. It's about stewardship.And that's what this whole show is about, how to effectively steward your money. Look at the Book of Matthew, chapter 22, verse 21. It says this, Give back to Caesar. What is Caesar's and give to God. What is God's?Handling taxes with integrity is part of faithfully managing what God gives us. It's not about fear. A lot of people fear taxes, but it's not about that. It's about wisdom and obedience.Well, how about we pray together, Lord, as we come right now? We ask that you would give me clarity in my finances. Lord, give me honesty in my decisions, give me peace where I felt anxious.And Lord, help me prepare wisely and trust you fully. And I ask this in the name of Jesus. Amen. Okay, here's your one action step for this week.I'm going to give it to you for this week because this little bit of big one, but I've put together a one page summary that I prepared for you of what to expect for the 2026 tax season. Now this is going to be based on 2025 tax code. Not to confuse everybody, but you do your 2025 taxes in 2026.But I want to give you this free one page summary. Go to financiallyconfidentchristian.com 2026 Again, that's financiallyconfidentchristian.com/2026 and just read it.Circle the one item that affects you and just make one small adjustment. Just one step can create a surprising amount of peace.Again, that's financiallyconfidentchristian.com/2026 and hey, share this with friends because there's plenty of love to go around. Friends, you don't need to understand everything, especially when it comes to taxes. You just need to understand the right things.And a few adjustments today can create peace all year long. So let's all go out there today and be financially confident Christians, because listen to me, you can absolutely do this.Stay financially savvy, God bless you, and you have a great day today.