No Tax on OT Update
No Tax on Overtime
Qualified Overtime Deduction 2025 – 2028
Maximum Deduction: $12,500 per tax payer.
Only the ½ time of the overtime is actually exempt. See below example:
Reg Time: 40 hrs at 20.00 = $800
OT hours: 8 hrs at 30.00 = $240
Total: $1040
Taxable:
Reg Time: 48 hrs at 20.00 = $960
Nontaxable OT 8 hrs at 10.00 = $80
Double time pay would be ½ of the double time would be tax exempt.
Employer’s may not have this reported on your W-2 as IRS is not changing the format until 2026. I would highly recommend that if you did have OT paid during 2025 that you take your last check stub with payment details with you when filing your return so that this information can be reported correctly on your tax return and your get the deduction.
We will keep you updated on the changes as the details come out. Stop by and see us in Keysville if you have any questions.
2025 Tax Legislation – Energy Efficient Home Improvement Credit
2025 Tax Legislation – Energy Efficient Home Improvement Credit
This credit now expires 12/31/25.
The credit was for 30% of qualified energy efficient improvements not exceeding $1,200 annually. ($200 if for heat pumps)
Stop in and see us in Keysville and we can discuss the 2025 changes and the effect on your tax return.
2025 Tax Legislation – Increased Threshold for Form 1099-K Reporting
2025 Tax Legislation – Increased Threshold for Form 1099-K Reporting
This changes the reporting requirements of third-party settlement organizations from $600 to $20,000 and more than 200 transactions within a tax period.
Stop in and see us in Keysville or give us a call and we can discuss how the Big Beautiful Bill changes will effect your 2025 Tax Return.
Trump Account – Newborn Pilot Program
2025 Tax Legislation – Big Beautiful Bill
Trump Account – Newborn Pilot Program
For US citizens born between 01/01/25 and 12/31/28, the federal government will contribute $1,000 per child into eligible accounts.
Trump Accounts can be opened by the parent or guardian for the newborn.
A social security number is required to open and account and receive the $1,000 contribution.
Visit us in Keysville and we can discuss how the “BBB” tax changes will effect your 2025 Tax Return.
2025 Tax Legislation – Car Loan Interest Deduction
2025 Tax Legislation – Car Loan Interest Deduction
This deduction is available tax years 2025 – 2028.
This is a new above line deduction of up to $10,000 for qualified passenger vehicle loan interest.
To Qualify the vehicle the interest paid or accrued during the year on debt incurred after 12/31/24 for the purchase (not lease). The secured first lien on and applicable passenger vehicle must be for personnel use. To take the deduction you must provide the vehicle identification number (VIN) on the tax return.
Stop in and see us in Keysville or give us a call and we can review the changes for 2025 and how they may effect your 2025 tax return.
2025 Tax Legislation – No Tax on Overtime
2025 Tax Legislation – No Tax On Overtime
This deduction is available tax years 2025 – 2028.
An above line deduction of $12,500 ($25,000 MFJ) was
created for overtime pay.
When the modified adjusted gross income go over
$150,000 ($300,000 MFJ) a phase out begins at a 10% rate.
This deduction is not allowed for Married
Filing Separately taxpayers.
Keep watching for my updates on the Big Beautiful
Bill and there effects on your tax returns.
Come in and visit use in Keysville to get
further information.
Attention Truckers and Loggers
Attention Truckers and Loggers
To avoid penalties from the IRS and state registration issues,
file your Form 2290 Highway and Use. This form is due by
September 2, 2025.
If you need help with filing this report we are glad to help
you. Stop by and see us in Keysville or give us a call.
2025 Tax Legislation – No Income on Tips
2025 Tax Legislation – No Income on Tips
Term Limits of 01/01/25 – 12/31/28
1. Creates an above line deduction for qualified tips Voluntarily
received.
2. To qualify the tip must e paid voluntarily and must be
determined by the payor.
3. The deduction is allowed for employees receiving a W-2,
independent contractors receiving a 1099-K or 1099-Nec, or
reported by taxpayer on Form 4317.
4. For those tips received in a business, the deduction is limited to
the amount of gross income received.
5. Phaseout begins at !0% rate with modified adjusted gross income
over $150,000 singe, and $300,00 married filing jointly.
Stop in and or reach out to us in Keysville if you have any questions.
Big Beautiful Bill – Child Tax Credit
The child tax credit stays at $2,000 per child and the $500 nonrefundable credit for non-child dependents of $500 continues along with the higher phase out limits.
Had the bill not been passed in 2026 the child tax credit would have reduced to $1,000, the nonrefundable $500 credit for non-child dependents would have expired, the child SSN requirement would have expired, and the income phase out levels would have returned to the lower rates. Leaving less people eligible for the Child Tax Credit.
Keep watching for my updates on the Big Beautiful Bill and there effects on your tax returns. Come in and visit use in Keysville to get further information.
Big Beautiful Bill – Deductions for Seniors:
Temporary deduction: 12/31/24 – 12/23/28
The Big Beautiful Bill provides a $6,000 deduction for seniors 65 and older. Your MAGI can not exceed $75, 000 for singles and $150,000 for married filing jointly. This deduction is not available to those married filing separately.