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…
Charitable Contribution deductions for non-itemizers The 2025 Tax Act introduces a permanent charitable deduction for non-itemizers, allowing individuals who do not itemize deductions to claim a deduction of up to $1,000 ($2,000 for joint filers) for cash contributions made directly to public charities. This new provision, effective in 2026, enables taxpayers to benefit from a…
No Tax on Tips Starting in 2025, the One Big, Beautiful Bill (OBBB) introduces a federal income tax deduction for tips, allowing eligible workers to deduct up to $25,000 in reported tip income annually. To qualify, you must work in an occupation the IRS designates as “customarily receiving tips” and report those tips on a…
The One Big Beautiful Bill Act (OBBBA) brings significant updates to 529 college savings plans—expanding the types of expenses that now qualify for tax-free withdrawals. Overview of 529 Plans A 529 plan is a tax-advantaged savings account designed to help families save for education. Contributions grow tax-free, and withdrawals are also tax-free when used for…
Starting in 2026, the One Big Beautiful Bill Act (OBBBA) increases the threshold for when businesses must issue Form 1099 for payments to non-employees. Form 1099 is used to report payments made in the course of a trade or business to individuals or unincorporated entities who are not employees—such as freelancers, independent contractors, and service…
The One Big Beautiful Bill Act (OBBA), signed into law on July 4, 2025, introduces significant changes to the tax code for families with children. Below is a summary of the key updates affecting the Child Tax Credit, new federal savings accounts for children, and the Other Dependent Credit. Child Tax Credit Previously: The Child…
The One Big Beautiful Bill Act (OBBA), signed into law on July 4, 2025, changes how gambling losses are treated for tax purposes. Starting with the 2026 tax year, taxpayers can no longer deduct the full amount of their gambling losses, even if they had enough winnings to cover them. Before this change, the rule…
The One Big Beautiful Bill Act (OBBA), signed into law on July 4, 2025, permanently eliminates miscellaneous itemized deductions from the federal tax code. These deductions, once available to taxpayers who itemized on Schedule A, are no longer allowed under any circumstances starting with the 2025 tax year. What Was Previously Included Before 2018, taxpayers…
