The Internal Revenue Service have issued guidance for workers eligible to claim the deduction for tips and for overtime compensation for tax year 2025. Specifically, the IRS clarified for workers how to determine the amount of their deduction without receiving a separate accounting from their employer for cash tips or
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Increased Limits for 401(k) and IRA Plans
The Internal Revenue Service has announced that the amount that individuals can contribute to their 401(k) plans, 403(b) plans, governmental 457 plans, and the federal government’s Thrift Savings Plan plans in 2026 has increased to $24,500, up from $23,500 for 2025. The limit on annual contributions to an IRA is
Form 1099-K threshold reverts to $20,000
Recent legislation retroactively reinstated the reporting threshold in effect prior to the passage of the American Rescue Plan Act of 2021 (ARPA) so that third party settlement organizations are not required to file Forms 1099-K unless the gross amount of reportable payment transactions to a payee exceeds $20,000 and the
Inflation Adjustments for Tax Year 2026
The Internal Revenue Service has announced the tax year 2026 annual inflation adjustments for more than 60 tax provisions, including the tax rate schedules and other tax changes. Notable changes The tax year 2026 adjustments described below generally apply to tax returns filed in 2027. Of particular interest to many
Final Regulations for Catch-up Contributinos
The IRS issued final regulations on September 15 addressing the new Roth IRA catch-up contribution rule enacted as part of the SECURE 2.0 Act in December 2022. These final regulations generally follow the proposed regulations issued in January 2025, with some changes made in response to comments the IRS received.
Educator Expense Deduction
It’s back to school season, and with that comes potential out-of-pockets costs for educators. The Educator Expense Deduction lets eligible teachers and administrators deduct certain expenses from their taxes. Eligible educators To qualify, you must be a kindergarten through grade 12 teacher, instructor, counselor, principal or aide and work at
Spotlight: Individual Deductions
Last month we took a look at all of the changes introduced by the passage of Public Law 119-21 (commonly known as the One Big Beautiful Bill Act). There were a lot of details in our summary, and some of them were easy to overlook. So this month we’re going
OBBB – Other Provisions
You have probably heard of the “One Big Beautiful Bill Act” which recently passed Congress and was signed by the President. This law has far-reaching effects in taxation for individuals, businesses, and beyond. This month we’re taking a close look at the key changes, so that you can see how
OBBB – Business Provisions
You have probably heard of the “One Big Beautiful Bill Act” which recently passed Congress and was signed by the President. This law has far-reaching effects in taxation for individuals, businesses, and beyond. This month we’re taking a close look at the key changes, so that you can see how
BBB – Individual Provisions
You have probably heard of the “One Big Beautiful Bill Act” which recently passed Congress and was signed by the President. This law has far-reaching effects in taxation for individuals, businesses, and beyond. This month we’re taking a close look at the key changes, so that you can see how