IRS introduces new Schedule 1-A with OBBBA deductions

Did you see this? 👀 IRS is not adjusting withholding in 2025 What does this mean? You won't see any changes in your current paycheck if you are a W-2 employee. However, for tax year 2025 (taxes filed in 2026) you will likely see a higher refund or lower tax liability since your current payroll is not taking into account new deductions under the One Big Beautiful Bill Act like the increased standard deduction amounts, qualified tips, qualified overtime pay, etc. #Accounting #Insights #InTheClearAccounting

The One Big Beautiful Bill Act has brought significant changes to individual, business, and payroll taxes. While we await final guidance from the IRS on several new OBBBA provisions, Toni Horsch, Manager, breaks down what we know so far—covering updates to payroll reporting, tax withholding, overtime and tip rules, and revisions to 1099-MISC and 1099-NEC forms. https://zurl.co/mB2mV #manercpa #obbba #publicaccounting #payrolltax #tax

📢 Tax pros, take note: The IRS just released proposed regulations for the “No Tax on Tips” deduction under the One Big Beautiful Bill Act (OBBBA). ✅ Up to $25,000 in qualified cash tips can now be deducted annually; impacting dozens of occupations from bartenders to digital creators. The rules outline: • What counts as a qualified tip • Which jobs qualify (spoiler: there are nearly 70!) • Timeframe for eligibility • And how this applies to 2025 returns 📄 Read the full IRS proposal: https://lnkd.in/gBEpxEuT 🧠 Want a deeper dive into how OBBBA impacts tip reporting and overtime pay? Don’t miss our brand-new CPE course: 🆕 Taxation of Tips and Overtime Under OBBBA (TTO2) 📅 Premieres Oct. 22 | 2 CPE credits 🔗 Register here: https://lnkd.in/gN-53Ms9 #CPE #Accounting #TaxProfessionals #OBBBA #TipsDeduction #IRSUpdate #CPETax #TaxLaw

HR1 introduces two below-the-line tax deductions for qualified tips and for qualified overtime compensation. While the new law does not eliminate payroll taxes on this income, there are income tax deductions available to taxpayers below certain income limitations. The new Act allows taxpayers to deduct up to $25,000 in qualified tips and $12,500 in qualified overtime on their personal tax return. These deductions will be effective for tax years 2025 through 2028. Read more here: https://lnkd.in/en6XjSUr #AccountantsAreFun #MeadowsUrquhart #OBBBA #HR1 #TaxChanges

2025 isn’t business as usual. With the One Big Beautiful Bill Act (OBBBA), Congress has added, trimmed, and overhauled the rules that impact businesses and individuals alike: Expanded standard deduction New below-the-line deductions (tips, overtime, car loans) Bonus depreciation revival SALT cap increase for high-tax states Clean energy credits expiring soon Our team at ExFed Tax (yes, we’re Uncle Sam’s exes) knows these rules because we used to enforce them. Now, we help you leverage them. Full breakdown here: ttps://wix.to/Qwq9qCW #TaxPlanning #BusinessStrategy #ExFedTax #2025TaxStrategy #OBBBA #IRSInsidersh #TaxStrategies #2025Finance

There are a lot of changes coming to your above the line deductions with OB3, and the IRS has just released a draft of Schedule 1-A, which will attach to 2025 tax returns. This new form will capture major updates, including: ✅ No tax on tips ✅ No tax on overtime ✅ Car loan interest deduction (VIN required) ✅ Enhanced deduction for seniors Above the line deductions are more powerful than itemized deductions, and these changes could significantly impact your tax planning. https://lnkd.in/ezaqYXEt #TaxPlanning #IRS #TaxStrategy #FinanceTips #TaxUpdates #CPAlife #TeachingTaxFlow

The One Big Beautiful Bill Act has rewritten the playbook for compliance, deductions, and advisory services. From permanent rate changes to new deductions on tips, overtime, and auto loans — tax firms and corporate departments must now rethink workflows, retrain teams, and rebuild client strategies. Explore our latest White Paper: “Impact of the One Big Beautiful Bill on Tax Filing Season” — a forward-looking analysis of what this legislation means for your filing season readiness, technology stack, and advisory model. #TaxSeason2025 #TaxReform #OneBigBeautifulBill #TaxAdvisory #CFOInsights #AccountingTransformation #TrueLedgerConsulting #TaxCompliance #TaxStrategy #FinanceLeadership

🚨 2025 Tax Filing Shake-Up – First Look at Schedule 1A 🚨 The IRS has released the draft of Schedule 1-A (Form 1040) — and it’s a BIG DEAL for workers, seniors, and even car buyers. Here’s what’s inside (effective for tax year 2025): * No Tax on Overtime Pay – Deduction up to $12,500 (Single) / $25,000 (MFJ) for qualified overtime premiums. (Phases out above $150K / $300K MAGI). * No Tax on Tips – Deduct up to $25,000 of qualified tips from income. (Also subject to income phase-outs). * Car Loan Interest Deduction – Up to $10,000 of interest on loans for qualified new passenger vehicles originated after Dec 31, 2024. (Phase-outs start at $100K / $200K MAGI). * Senior Deduction Boost – An extra $6,000 per taxpayer if born before Jan 2, 1961 (age 65+ in 2025). ⚠️ Note: All provisions are temporary — set for 2025 through 2028 under the One Big Beautiful Bill Act (OBBBA). 💡 My Take: This isn’t just a tweak — it’s a new era of worker-focused tax relief. But with income phase-outs and eligibility rules, careful planning will be crucial. ▶️ If you have time, please watch the video I prepared using Notebook LM with advanced AI tools — it explains these changes in a smoother, more visual way. 📌 Stay tuned — I’ll be breaking down each section in plain English soon! #TaxUpdate #IRS #1040 #Schedule1A #Overtime #Tips #CarLoan #SeniorBenefits #CPA #EA Link to access the Draft Form - Schedule 1A https://lnkd.in/db2m4Sij

2025 Tax Changes to Know The One Big Beautiful Bill is bringing new rules that could directly impact your bottom line this year. Here are a few highlights for entrepreneurs and small business owners: Standard Deduction Made Permanent – Simplifies planning and keeps more money in your pocket. Overtime Tax Relief – You can deduct the “half-time” portion of employee overtime pay (up to $25,000 for joint filers). Car Loan Interest Deduction – Interest on new U.S.-assembled vehicles may now be deductible (up to $10,000) — potential savings for those adding company cars. Higher SALT Cap – Expanded deductions for state and local taxes help business owners in high-tax states. Senior Bonus Deduction – For owners 65+, an additional $6,000 deduction (2025–2028). These changes could affect hiring costs, vehicle purchases, and your overall tax planning strategy. Reach out if you’d like to see how these changes apply to your 2025 financial strategy.

Key points: • IRS is developing a new Schedule 1-A to use to claim new deductions for tip income, overtime pay, car loan interest and new tax break for those 65 an older. • IRS and Treasury give new guidance on what nearly 70 occupations that qualify for 'no tax on tips.' • If a tip is added automatically with no option for the customer to disregard or modify it, the amount distributed to workers from it doesn't qualify for a tax break, according to new guidance.