The One, Big, Beautiful Bill (OBBB) has a significant effect on federal taxes, credits and deductions. Millions of taxpayers reported earning tips and overtime on their tax returns, many of them are veterans and people working in lower wage jobs. This relief will impact most of these taxpayers and they can start taking advantage ofRead more about How to Take Advantage of No Tax on Tips and Overtime[…]
2026 Business Standard Mileage Rate
The Internal Revenue Service has announced that the optional standard mileage rate for business use of automobiles will increase by 2.5 cents in 2026, while the mileage rate for vehicles used for medical purposes will decrease by half a cent. Optional standard mileage rates are used to calculate the deductible costs of operating vehicles forRead more about 2026 Business Standard Mileage Rate[…]
Guidance on Trump Accounts Announced
The Department of the Treasury and the Internal Revenue Service has issued a notice announcing upcoming regulations and providing guidance regarding Trump Accounts, which are a new type of individual retirement account (IRA) for eligible children. The Working Families Tax Cuts provides for establishing a Trump Account on behalf of every eligible child for whomRead more about Guidance on Trump Accounts Announced[…]
Guidance for People Who Received Tips or Overtime Pay in 2025
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 qualified overtime on information returnsRead more about Guidance for People Who Received Tips or Overtime Pay in 2025[…]
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 increased to $7,500 from $7,000.Read more about Increased Limits for 401(k) and IRA Plans[…]