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 […]
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 […]
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 […]
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 […]
Protect Your Deductions with Digital Receipts
When it comes to IRS audits, one of the most common reasons taxpayers lose deductions is the lack of proper documentation. To fully protect your deductions, especially for business-related expenses such as meals, travel, vehicle use, and gifts, you need to keep receipts that document five key facts: the date, the amount, the place, the […]
Tax Code – Defined Statutory Employees are Hybrid Self-Employed
When you hire a worker, one of the most important decisions you’ll make is classifying the worker as either an employee or an independent contractor for tax purposes. If you correctly classify a worker as an independent contractor, you’re not required to pay the employer’s share of Social Security and Medicare taxes or to withhold […]
How to Ask Your C or S Corporation for Travel Reimbursements
Here’s a short note on your payments of corporate expenses and the process for receiving travel reimbursement from your C or S corporation. Your Corporation Is a Separate Legal Entity As a business owner operating through a corporation, you need to remember that the corporation is a distinct legal entity separate from you. Ensuring proper […]
How to Deduct Disaster Losses on Taxes for Individuals
The federal tax law provides relief if a disaster—such as a fire, flood, or hurricane—damages your personal (non-business) property, including your home, belongings, and vehicle. You may be able to deduct these disaster losses from your taxable income, but the rules are complex and often restrictive. Recent changes to the law have expanded eligibility, allowing […]