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.