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Analysis of the 2025 Federal Tax Changes Under the “One Big Beautiful . . . Allow a deduction for certain new car loan interest (only if the vehicle’s final assembly occurs in the U S ) of up to $10,000 for tax years 2025 through 2028 for those earning $100,000 or less ($200,000 for joint filers), with a phase-down thereafter;
Compensation and benefits tax provisions in “One Big Beautiful Bill” Under each provision, employers would need to separately report the qualified tips on the Form W-2 and apply any adjustments to withholding However, reporting on Form W-2 would not otherwise be changed The provisions exclude the tips from income by allowing an employee deduction lessens the employer burden
One Big Beautiful Bill Act: Tax deductions for working Americans and . . . FS-2025-03, July 14, 2025 Below are descriptions of new provisions from the One Big Beautiful Bill Act, signed into law on July 4, 2025, as Public Law 119-21, that go into effect for 2025 “No Tax on Tips” New deduction: Effective for 2025 through 2028, employees and self-employed individuals may deduct qualified tips received in occupations that are listed by the IRS as customarily and
New Auto Loan Interest Deduction Under the Big Beautiful Tax Bill: What . . . As with many provisions in the Big Beautiful Tax Bill, the new auto loan interest deduction phases out for higher-income earners based on modified adjusted gross income (MAGI) Here’s how the phase-out works: Example: A single taxpayer with $110,000 in MAGI is $10,000 over the phase-out threshold