Navigating the New Tip Tax Deduction: Eligibility, Limits, and Reporting Requirements
Congress recently passed the One Big Beautiful Bill Act, or OBBBA, which introduces a new tax deduction for tips beginning in 2025. This provision, called “No Tax on Tips,” sounds broader than it really is. The deduction is both temporary and limited in scope, and many tips will still be subject to taxation. Who Qualifies […]
Integrating QCDs Into Your 2025 Tax Strategy
If you’re age 70 1/2 or older, the IRS allows you to make charitable contributions directly from your IRA to approved organizations, such as your church. These transfers, known as qualified charitable distributions (QCDs), have become even more powerful under the new One Big Beautiful Bill Act (OBBBA)—and could be one of the most effective […]
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 […]
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 […]
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 2025 Update: Bigger Tax Savings for Business Owners Hiring Their Kids
If you own a business and have children, the One Big Beautiful Bill Act (OBBBA) just made the popular “hire your child” tax strategy even more attractive starting in 2025. Read more about the tax savings you can take advantage of for hiring your kids. Thanks to the OBBBA, the standard deduction for a single […]
Avoid Costly Tax Mistakes with Vacation Home Rentals
If you own a vacation home or rent out a second property, there’s a tax case you should know about—one that could save you thousands of dollars in lost deductions. The tax case shows the benefits of proactive tax planning when you own a vacation home or rent out a second property. Charles M. Akers […]
Defined Benefit Plan, A Tax-Advantaged Retirement Planning for Business Owners
Are you a high-income solo business owner seeking to supercharge your retirement savings while cutting your tax bill? If so, there’s a powerful tool that may surprise you: the defined benefit plan. Often associated with large corporations or government jobs, defined benefit plans can also be a strategic solution for self-employed professionals and sole owners […]
Maximizing Deductions for Business Conventions
You and your business likely benefit from attending business conventions and seminars. It’s essential to know which expenses you can deduct—and how to ensure they qualify. As a business owner, you might assume that if a seminar is “business related,” it’s automatically deductible. But that’s not always the case. The IRS sets specific requirements depending […]
How to Meet Your HRA PCORI Fee Filing Requirement and Avoid Penalties
Have you established a 105-HRA, a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA), or an Individual Coverage Health Reimbursement Arrangement (ICHRA) to reimburse your employees for medical expenses? If so, congratulations! These HRAs are an excellent way to cover your employees’ medical expenses and claim a tax deduction. But all three types of HRAs come […]