Exploring Your Term Life Insurance Options Safely and Smartly
Are you considering cashing out your term life insurance policy? Unfortunately, selling a term life policy to investors is nearly impossible unless you are terminally ill and unlikely to outlive the policy. Exploring different term life insurance options might help you understand alternative solutions. You do have one potential option: you could name a relative […]
Dog Breeding and the IRS: Turning Your Hobby into a Legitimate Business
Are you involved in a dog breeding business or considering starting one? If so, you are in the IRS’s crosshairs. The IRS has long considered dog breeding to be an activity typically classified as a hobby, rather than a business, for tax purposes. When it comes to taxes, hobbies are usually tax disasters. Unlike a […]
OBBBA Delivers Bigger Tax Deductions for Business Owners
Here’s good news beginning in 2025. The One Big Beautiful Bill Act (OBBBA) permanently eases the rules that limit the deduction for business interest expense. Background The deduction for business interest expense is generally limited to the sum of You carry disallowed business interest forward to future years. While these rules remain in place, the […]
New Educator Tax Breaks: What the OBBBA Means for You
The One Big Beautiful Bill Act (OBBBA) makes significant changes to the educator expense deduction—for 2025 and beyond. If you are a teacher, a coach, a counselor, or some other school professional, here’s what you need to know to maximize your tax savings. Current Rule for 2025 For 2025, eligible educators may claim an above-the-line […]
Section 529 Plans: More Flexibility for Education Savings
Section 529 plan accounts—also called “qualified tuition plans” (QTPs)—have long provided a powerful tax-advantaged way to save for education expenses for children, grandchildren, and even yourself. While contributions to these accounts are not federally tax-deductible, the money in them grows tax-free, and withdrawals remain tax-free when used for qualifying education expenses. The recently enacted One […]
Expanded Tax Benefits for Qualified Small Business Stock Under the OBBBA
Do you own stock in a high-growth small business? Or are you a founder, an investor, or an employee of one? If so, you need to understand how the One Big Beautiful Bill Act (OBBBA) expands the tax benefits of qualified small business stock (QSBS). What QSBS Is “QSBS” refers to stock issued by regular […]
Understanding the Overtime Deduction Under the OBBBA
Do you regularly earn overtime pay? If so, the One Big Beautiful Bill Act (OBBBA) may help lower your federal income tax bill by adding to the deduction of qualified overtime income. New Overtime Deduction Before 2025, the IRS taxed every dollar of your overtime pay as ordinary income. Beginning this year (2025) and continuing […]
OBBBA Implements 2025 Deduction Increases
Starting in 2025, the One Big Beautiful Bill Act (OBBBA) increases and makes permanent the larger standard deductions introduced by the Tax Cuts and Jobs Act. The new standard deductions for this year (2025) are The IRS will adjust the amounts annually for inflation beginning in 2026. Additional deductions remain for those who are age […]
Major Tax Changes for Contractors and Businesses: The 1099 Form Update
Filing tax forms is never fun—but it’s important to stay ahead of changes that can reduce your reporting burden. Here are some major 1099 form updates from the One Big Beautiful Bill Act (OBBBA). If your business pays independent contractors (non-employees) for services, you are required to file IRS Form 1099-NEC if total payments exceed […]
OBBBA Adds a Possible Senior Tax Deduction (Age 65 and older)
If you will be age 65 or older on December 31, 2025, you have a new opportunity for tax savings. The One Big Beautiful Bill Act (OBBBA) created a new bonus tax deduction—available for seniors beginning this year (2025). You can claim this deduction whether or not you itemize. How Much Can You Deduct? If […]