Well, the new year is certainly off to a fast start! As is the case every year in the month of January, we are focused on preparations for this Tax Season. Clients are beginning to schedule their annual appointments, sending in their documents for tax preparation, and many are already utilizing our new client portal.
This tax season will bring new changes, both to the way our firm is operating technologically, and also with the tax code itself. Our new portal is up and running, and we are thrilled to see clients uploading their documents for a more streamlined and secure process. To gain access, please call or email our office. Any of our team members can assist you in this process.
Tax Law Changes
With the passing of the One Big Beautiful Bill Act in 2025, many new updates are going to have an immediate impact on millions of taxpayers around the country.
- No Tax on Overtime: This is a new provision never seen before, and while it is exciting for some, there are a lot of misconceptions. The “no tax” is only applied on the overtime pay over your normal pay rate. Since overtime is calculated as 1.5 times your normal pay rate, it is only the 0.5 portion of overtime pay that is deductible.
Important Note: The W-2 Forms for 2025 are unchanged from the previous year, so we encourage clients that received overtime pay in 2025 to please bring your final paystub of the tax year.
- Deduction for Car Loan Interest: Auto loan interest paid in 2025 for personal-use vehicles that were made-in-America of up to $10,000 can be deducted whether the taxpayer is itemizing deductions, or taking the standard deduction. Check with your auto loan provider for your 2025 tax reporting information.
- Higher State and Local Tax Deductions for some taxpayers may be as high as $40,000 for 2025, increased from the previous limit of $10,000. This means that many clients will find themselves able to once again, itemize their deductions.
- Deduction for Seniors: For the tax years 2025 - 2028, taxpayers 65 and older may claim an additional deduction of $6,000 ($12,000 for married filing jointly). This particular deduction item phases out as income increases.
Lastly, I would like to introduce some of our newest members of our tax team. James Wang, CPA joined us two years ago. Vi Cardin, Enrolled Agent joined us last year. And the newest member of our team is Miguel Santana, CPA. As our practice has grown over the years, we now have seven CPA's and Enrolled Agents on our tax team ready to serve our clients.
We look forward to seeing you soon. Whether we are meeting in-person, virtually, or over the phone, we are always excited to catch-up with clients and learn about what is happening in their lives. Please contact our office early to schedule your in-person or virtual appointments, or to request an invitation to our new client portal in order to securely send us your 2025 tax information.