Trump Account – Newborn Pilot Program

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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

Posted on by Colleen HavensLeave a Comment on 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

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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.

 

2025 Tax Legislation – No Income on Tips

Posted on by Colleen Havens
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

Posted on by Colleen Havens

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:

Posted on by Colleen Havens
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.
I am very disappointed in this change, as it only reduces seniors taxable income by $6,000 and does not fulfill the “No Tax on SS”. Seniors be aware as your taxes in 2025 will not be reduces as much as you where hoping for. Stop by and see me in Keysville so we can discuss and plan for your 2025 Income Tax Return.

Big Beautiful Bill – Individual Income Tax Rate Brackets:

Posted on by Colleen Havens

The Big Beautiful Bill makes the TCJA (Trump’s 1st term bill passed) created modified federal income tax bracket schedule and lower tax rates permanent. The below table says it all.

Bracket         2026 W/O BBB       2026 BBB     Decrease Due to BBB %

1                           10%                   10%                            0

2                          15%                    12%                         3%

3                          25%                    22%                         3%

4                          28%                    24%                         4%

5                          33%                    32%                         1%

6                          35%                    35%                          0

7                          39.6%                 37%                       2.6%

More to come on the BBB changes will be coming. Stop in and let us help you help yourself here in Keysville!

Summary of Changes in the “Big Beautiful Bill”

Posted on by Colleen Havens

Summary of Changes in the “Big Beautiful Bill”

In the coming weeks I will be posting more detailed information regarding the below list of changes that effect your 2025 tax return. For now I am posting a listing of things that I feel will most effect people of our area.

Individual Income Tax Rate Brackets: Make permanent the modified federal income tax brackets and lower tax rate made with the TCJA.

Deduction for Seniors (65 and older): Tax years 2025 – 2028, $6,000 deduction for years 2025 -2028. This deduction is to help negate income tax on social security. Income limitations apply.

Child Tax Credit: Made $2,000 and the $500 nonrefundable credit for non-child dependents. Income limitations apply.

Wagering (Gambling) Losses: Permanently make a limit of expenses related to wagering be limited to the extent of the gambling winnings. Deduction for gambling loses limited to 90% of losses incurred during the year.

No Income Tax on Tips: Tax years 2025 – 2028, $25,000 limit set. Must be reported on a W-2 or 1099-NEC form. Income limitations apply.

FICA Tip Tax Credit For Employers: Allows eligible employers ot claim an income tax credit for a portion of Social Security and Medicare (FICA taxes)on certain employee tips.

No Tax on Overtime: Tax years 2025 – 2028, an above line deduction of up to $12,500 for overtime pay. Overtime pay must be reported on the W-2. Income limitations apply.

Car Loan Interest Deduction: Tax years 2025 – 2028, applies to new cars assembled in US. Up to $10,000. Income limitations apply.

Trump Accounts – Newborn Pilot Program: Birth Years 2025 – 2028, US citizens will receive a $1,000 contribution.

Increased Threshold for Form 1099-K Reporting: New reporting limit is $20,000.

Energy Efficient Home Improvement Credit: Credit expires 12/31/25. Covers heat pumps, exterior doors, windows, central air conditioners, water heaters, furnaces, boilers, and electric panels.

Watch for the detailed changes in the coming weeks. Feel free to stop in to discuss with us here in Keysville.