Significant New Tax Law Changes for 2025 Tax Returns Overtime: The Act adds a new deduction of up to $12,500 ($25,000 for joint filers) for “qualified overtime compensation,” subject to phaseout for a taxpayer with Modified Adjusted Gross Income exceeding $150,000 ($300,000 for joint filers). The employee must be considered non-exempt under the Fair Labor…
Items Affecting 2025, 2026 or Future Years’ Individual Tax Returns ABLE accounts: The Act permanently provides for additional contributions to Achieving a Better Life Experience (ABLE) accounts for employed individuals with disabilities. The Act also permanently allows beneficiaries who make qualified contributions to their ABLE account to qualify for the Saver’s Credit. Adoption: Starting in…
Items Affecting 2025, 2026 or Future Years’ Business Tax Returns (including 1040s with Schedules C or E) Bonus depreciation: The Act makes additional first-year (bonus) deprecation for certain qualified property acquired after January 19, 2025, permanent at 100%. There is also a new 100% bonus depreciation provision for “qualified production property” (QPP) which is certain…
How to Pay Individual Income Tax Due Online This step-by-step guide will help walk you through paying the income tax that you owe with your return to the IRS. How to Pay You have two payment options: Direct Pay – Pay directly from your bank account without creating an IRS account. Follow the steps below…
How to Set up an IRS Account This step-by-step guide will help you create an IRS account. Benefits of Creating an IRS Account Creating an IRS account online offers several advantages: Securely make payments directly to the IRS. Access your payment history for up to five years, including pending or scheduled payments. Benefit of enhanced…
No Tax on Overtime: A New Federal Deduction for Workers The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, introduced a significant new tax benefit for millions of American workers: a federal income tax deduction for qualifying overtime pay. This provision will be effective for the years 2025 through 2028….
The One Big Beautiful Bill Act (OBBB) brings major updates to energy and clean vehicle tax credits, making 2025 a critical year for homeowners and car buyers looking to maximize savings. Energy Credits If you’re considering making energy-efficient or clean energy improvements to your home, now is a great time to act, as two valuable…
Opportunity zones are economically distressed communities that have been designated by states and certified by the U.S. Treasury, where new investments may be eligible for preferential tax treatment. The purpose of opportunity zones is to spur economic development and job creation in these areas by providing tax incentives for investors. When taxpayers invest eligible capital…
The One Big Beautiful Bill Act (OBBBA), passed in 2025, permanently extended the lower tax rates and higher standard deductions originally introduced under the Tax Cuts and Jobs Act (TCJA). Without OBBBA, these provisions were set to expire at the end of 2025, reverting to higher pre-2018 tax brackets. Tax Rate Single Filers Married Filing…
