Imagine finding out that someone was trying to sell your house. Someone who didn't own your house, didn't have your permission, and was trying to sell it anyway.

It sounds like the plot of a Netflix movie, but it's a real scam. Criminals use forged documents, stolen identities, and sometimes surprisingly simple tactics to take control of property that isn't theirs.

I've seen how convincing these schemes can be. In one case my firm helped resolve, thieves added their names to several mailing lists to make it look like they lived at a property. They then used that mail as evidence of residency to transfer the utilities into their names. By the time the owners realized what was happening, the thieves were already in the process of flipping the home.

It's called deed fraud, and it's a problem that has caught the attention of law enforcement across the country.

The good news? There are some relatively simple ways to protect yourself, including checking your property records and signing up for free alerts. And if you've seen those ads for home title lock insurance, you might be surprised to learn what you're actually buying.

Of course, protecting what you have is only one part of financial security. Keeping your income in step with rising costs is another. That's especially important for retirees.

The Social Security Administration announced that benefits will increase by 3.6% in 2027, translating to about $75 more per month for the average retired worker. That's welcome news, though the increase may not stretch as far as it sounds.

For starters, higher Medicare premiums could eat into some of that increase (those costs haven’t been announced yet). And the income thresholds used to determine whether Social Security benefits are taxable aren't adjusted for inflation, which means a bigger Social Security check could also mean a bigger tax bill.

While we're talking about making the most of your money, it's worth paying attention to how you give it away, too. Several new charitable giving rules take effect for the 2026 tax year.

A new floor means charitable contributions for those who itemize are generally deductible only to the extent they exceed 0.5% of adjusted gross income. And taxpayers in the highest tax bracket face additional limitations on the value of their itemized deductions.

But taxpayers who don't itemize can claim a limited deduction for qualifying cash donations (up to $1,000 for individuals and $2,000 for married couples filing jointly). That's good news for many taxpayers—and you still have a couple of months to take advantage.

Speaking of year-end planning, if you're thinking about lending money to a family member, selling property on an installment basis, or making certain estate planning moves, the IRS has released its November applicable federal rates. Those rates help determine the tax consequences of certain transactions, including loans that charge little or no interest. They're not the same as the interest rates the IRS charges on unpaid taxes, and getting them right can help avoid surprises later.

If you do owe taxes, paying your federal taxes by credit card could soon get easier. The IRS has finalized regulations that will let taxpayers pay by credit or debit card directly through the agency, instead of routing payments through a separate processor. That doesn't mean payments will be free—processing fees aren't going away—but it could make the process more convenient.

Let’s talk more tax.

A reader asks: Can I deduct the cost of my Ozempic on my tax return? It’s a prescription.

Taxgirl says: Maybe. The IRS generally allows taxpayers to deduct the cost of prescription medications used to treat a medical condition. That includes Ozempic when prescribed to treat type 2 diabetes or another diagnosed condition, such as obesity. But there's a distinction between treating a medical condition and simply trying to lose weight. 

Not every health- or weight-loss-related expense qualifies as a deductible medical expense. The IRS generally distinguishes between expenses incurred to treat a diagnosed medical condition and those intended to improve general health or appearance. For example, the cost of a weight-loss program prescribed to treat obesity or another diagnosed disease may qualify, while gym memberships, ordinary diet foods, and programs aimed solely at improving appearance generally don't.

Even if your Ozempic qualifies, there's another catch. You can only deduct medical expenses if you itemize your deductions, and then only to the extent that your total qualifying medical expenses exceed 7.5% of your adjusted gross income (AGI). For example, if your AGI is $100,000, the first $7,500 in medical expenses isn't deductible. If you have $10,000 in qualifying medical expenses, you can deduct $2,500.

Finally, you can only deduct expenses you actually pay out of pocket. Amounts covered by insurance or reimbursed through an HSA or FSA on a tax-free basis don't qualify for an additional deduction. The bottom line? Ozempic may count as a medical expense, but that doesn't necessarily mean it will lower your tax bill. For more information, check out Pub 502.

An Individual Taxpayer Identification Number (ITIN) is a nine-digit number issued by the IRS to individuals who need a U.S. taxpayer identification number for federal tax purposes but aren't eligible for a Social Security number (SSN). Fun fact: it always begins with a 9.

ITINs are available to qualifying resident and nonresident aliens, regardless of immigration status. This includes people who live and work in the United States, as well as individuals living abroad who have U.S. tax obligations. Certain spouses and dependents may also qualify.

An ITIN allows individuals to file federal income tax returns, report income, pay taxes, and claim refunds or certain tax benefits for which they're eligible. But an ITIN isn't the same as an SSN. It doesn't authorize someone to work in the U.S., provide legal immigration status, or qualify someone for Social Security benefits or the Earned Income Tax Credit (EITC).

A common misconception is that ITINs are issued only to undocumented immigrants. That's not true. They're also used by foreign investors, nonresident taxpayers, and others who have U.S. tax obligations but don't qualify for an SSN. To apply, individuals generally submit IRS Form W-7 with a federal tax return. ITINs can expire if they aren't used on a federal tax return for three consecutive tax years, so taxpayers should check whether renewal is necessary before filing.

In what year did Social Security benefits first increase?

A. 1940

B. 1950

C. 1965

D. 1975

Find the answer at the bottom of this newsletter.

This week, get to know Logan Graf, a Texas CPA, firm owner, and content creator who's challenging the traditional accounting firm model—and having some fun along the way. Logan runs The Graf Tax Co., leads Counter (a community for accounting firm owners), and co-hosts the Own Your Firm podcast. He touches on AI in tax practice, common tax myths, why he wishes more clients would ask about S corporations, and his dream of owning a 20-year-old G-Wagon.

If you know someone who should be featured in a future Getting To Know You Tuesday, you’ll find nomination and submission information at the bottom of the post.

Pay Your Tax Bill. The October 15 filing deadline has come and gone for most taxpayers who requested an extension. While taxes were generally due back on April 15, you may have been surprised to find you owe more than expected. If that's the case, don't panic—but don't put it off, either. Interest and potentially penalties continue to accrue on unpaid balances, so it's worth taking care of that bill sooner rather than later. If you can't pay the full amount right now, that's okay. The IRS offers options, including payment plans.

Now through December 7, 2026 — Medicare Open Enrollment. Review or change Medicare Advantage and Part D prescription drug plans for 2027.

November 1, 2026 — Health Insurance Marketplace Open Enrollment Begins. Individuals can begin selecting health insurance coverage for 2027.

December 7, 2026 — Medicare Open Enrollment Ends. Last day to make changes to Medicare Advantage and Part D prescription drug plans for 2027.

December 15, 2026 — Marketplace Coverage Deadline. Enroll through HealthCare.gov by this date for coverage beginning January 1, 2027.

December 31, 2026 — Year-End Tax Planning Deadline. Generally the last day to make charitable contributions and complete Roth conversions for the 2026 tax year.

December 31, 2026 — Required Minimum Distributions (RMDs) Deadline. Generally, taxpayers age 73 and older must take their RMDs from traditional IRAs and certain retirement accounts by year-end. 

October 22 — UCLA Tax Controversy Conference, Beverly Hills. The annual conference focuses on tax controversy and litigation.

November 9-10 — AICPA National Tax Conference, Washington, DC + virtual. Federal tax developments, IRS priorities, and legislative changes. Speakers include National Taxpayer Advocate Erin Collins and my former Forbes writing colleague, Tony Nitti.

November 15-20 — NYU Institute on Federal Taxation, New York City. Focus on tax controversies, partnerships, trusts and estates, international tax, and more. 

IRS begins issuing automatic adoption tax credit refunds. The IRS has begun issuing refunds to more than 50,000 taxpayers following a change in how certain adoption tax credit carry-forwards are treated for the 2025 tax year. Eligible taxpayers generally won't need to file amended returns, and the IRS expects most refunds to be completed by year-end.

Taxpayer Advocate urges IRS to stop denying certain refund claims. National Taxpayer Advocate Erin Collins is calling on the IRS to pause denials involving Kwong litigation over COVID-era tax deadlines. The agency has received more than 275,000 related refund and abatement claims, and Collins warns that premature denials could jeopardize taxpayer rights.

Treasury and IRS propose changes to health insurance tax credits. New proposed regulations would implement changes to the Premium Tax Credit under the 2025 tax law, including stricter eligibility verification, reporting requirements, and rules governing repayment of excess advance credits.

IRS launches Tax Professional Awareness Week. The IRS is hosting webinars and sharing resources October 19-23 to help tax professionals prepare for the 2027 filing season. Topics include preparer due diligence, cybersecurity, protecting client information, and navigating tax law changes.

The tax world is full of interesting people. Here’s who’s making news.

Pallav Raghuvanshi, a shareholder at Greenberg Traurig, has been named president of the Tax Club of New York for the 2026-2027 term. Raghuvanshi focuses on U.S. and international taxation, including cross-border transactions, private investment funds, and corporate restructurings.

Phillip "Phil" Wuollet has been named tax leader at accounting firm Abdo. Wuollet has more than 20 years of experience in tax and business advisory services.

The answer is B. 1950. 

Social Security benefits first increased in 1950, ten years after monthly retirement benefits began. At the time, Congress had to approve benefit increases. Automatic cost-of-living adjustments (COLAs), tied to inflation, didn't begin until 1975.

Last week, I asked whether a California couple could claim nearly $25,000 in home-office expenses, including new carpeting, heated floors, and a relocated wall. If you sided with the IRS, you were right! In Fontayne v. Commissioner, the Tax Court ruled that the renovations were capital improvements, not currently deductible business expenses. The couple's change in employment status also created a problem for their deductions. 

It's a good reminder that just because something feels like a business expense doesn't mean the IRS sees it that way. That seems to be a recurring theme this week, whether we're talking about protecting your home, making charitable contributions, or figuring out what you'll actually take home from a Social Security increase. The details matter, and sometimes the rules aren't quite what we'd expect or hope.

That's why I love digging into these stories—and why I'm glad you're here. I'll see you next week.

Thanks for reading! 💚

Have thoughts about the newsletter? I’d love to hear what you liked, what you didn’t, and what you’d like to see more of. You can email me here. 

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