Taxes Made Easy

Did You Know?

 COMING SOON: Details regarding various new Tax provisions. As always, contact us with any questions or concerns. 

• No Tax on Tips? The facts: This applies to professional that normally receive tips, like restaurant servers, hospitality industry, etc. The IRS has put out an extensive list, so if you're not sure, check out this pdf from the US Treasury: https://home.treasury.gov/system/files/136/Tipped-Occupations-Detailed-8-27-2025.pdf.  The deduction applies to the first $25,000 in tips, which do not include mandated service fees. Tips must be reported on an official tax form (W2, 1099NEC, 1099K or Form 4137. Income and other restrictions also apply.
• No Tax on Overtime? The facts: This deduction is up to $12,500 in overtime. "Overtime" is considered that extra "half" of the "time and a half" pay for overtime. For example, if I work 42 hours in a given week, the 2 hours over 40 is typically paid as overtime. If I'm paid $16/hour, then overtime is $24/hour. However, only the extra $8/hour is deducted as "overtime" for tax purposes. Bring in your final pay stub for the year. We may need multiple pay stubs if you've received any raises throughout the year in order for us to calculate your deduction properly. Other restrictions apply.
• No Tax on Social Security? The facts: Not true. However, there is a Senior deduction for those aged 65 years or older, of up to $6,000, in addition to the standard deduction. This too, is subject to income limitations.
• The business mileage rate for 2025 went up to 0.70 for the entire year.
• The business mileage rate for 2024 went up to 0.67 for the entire year.
• Some of you may be familiar with the 1099-K from third party payment centers for large amounts paid to businesses. The latest tax law (for 2025) reverts back to the old law which requires the third party payment center (Venmo, CashApp, eBay, etc.) to send a 1099-K if the total amount received within the year is over  $20,000 and over 200 transactions. Some third party payment centers may still send them our if below the threshold. If you do receive one, some may not be taxable, but the IRS will receive a copy of these 1099-Ks, so you must report it. If you do receive one, bring it in! This includes any crowdfunding money you've received either for yourself or on behalf of someone else.
• Cryptocurrency. Digital Assets. Bitcoin. The IRS calls them all “virtual currency.” If you sold, traded or received any virtual currency in 2025, we need to know. The IRS is cracking down on those not reporting these transactions, so bring in any and all information you have regarding virtual currency. Here's an article that explains a little bit about virtual currency: https://coinledger.io/blog/how-to-report-cryptocurrency-on-taxes.
  
• The Residential Energy Credit ends Dec 31, 2025. The Clean Vehicle Credit ended Sept 30, 2025. As long as the contract was made and paid for before the deadline, the credit may apply even if not delivered until later. For details: https://www.energystar.gov/about/federal-tax-credits#hi_tax_credit_2025. Contact us for more details.
• RMDs are required! The minimum age is still 73 (if you were born between 1951-1959). If you forgot last year, let us know ASAP! We may be able to mitigate any penalties, but we need to do so sooner rather than later!
• A few years ago, the City of Columbus, OH created a new portal for online tax accounts, called CRISP, Columbus Revenue Information Service Portal. They mailed out notices to Columbus residents. It is legit, but you are NOT required to create an account. As always, you can call us with questions. Click here for the link to CRISP.