O.K. Taxes

01/21/2026

IRS tips (Internal Revenue Service) cover taxable income from service jobs, requiring daily records, employer reporting (Form W-2), and tax return inclusion, with recent guidance (Notice 2025-69) introducing a new $25k deduction for "qualified tips" (2025-2028), phasing out above $150k MAGI, though forms remain unchanged for now, so tracking and reporting accurately is key.
Key IRS Tips for Tipped Workers
All Tips Are Taxable Income: Cash, electronic, and non-cash tips are income, subject to federal income tax and F**A (Social Security & Medicare).
Report to Your Employer: You must report all cash tips over $20/month to your employer, who includes them on your W-2.
Keep Daily Records: Maintain a log of all tips received, including cash, charged tips, and tip-sharing.
Report Unreported Tips: Include tips not reported to your employer (or allocated tips from Box 8) on Form 4137, paying the employee's share of F**A tax.
New Deduction (2025-2028): A new deduction for "qualified tips" (e.g., from food/beverage, hospitality) allows up to $25,000, phasing out at higher incomes, but forms aren't updated yet, so recordkeeping is crucial for claiming it.
Employer Responsibilities
Provide W-2s with wages, reported tips, and potentially allocated tips (Box 8).
Withhold taxes on reported tips and pay the employer's share of F**A.
What to Do
Track meticulously: Use a daily log for all tips.
Understand Box 8: If you have allocated tips, report them unless you can prove you earned less.
Use New Guidance: Review IRS Notice 2025-69 for the new deduction rules.

01/16/2026

Here is so useful information found on the irs.gov:

Married individuals who use the Married Filing Separately (MFS) status are not eligible for the new federal overtime pay deduction (often called the "No Tax on Overtime" deduction), which is available for tax years 2025 through 2028. To claim the deduction, married couples must file a joint return.
Eligibility and Rules
The overtime deduction, enacted by the "One Big Beautiful Bill" in July 2025, is a temporary provision for 2025-2028 that allows eligible workers to deduct a portion of their qualified overtime pay from their federal taxable income.
Key rules related to the deduction:
Filing Status: You must file as Single, Head of Household, or Married Filing Jointly. The deduction is explicitly disallowed for those using the Married Filing Separately status.
Maximum Deduction: The maximum deduction is $12,500 for individual filers and $25,000 for married couples filing a joint return.
Income Limits: The deduction gradually phases out for taxpayers with a Modified Adjusted Gross Income (MAGI) over certain thresholds:
$150,000 for single or head of household filers.
$300,000 for married couples filing jointly.
The deduction is fully phased out at $275,000 (single) and $550,000 (joint) MAGI.
Qualified Overtime: The deduction applies only to the "premium" portion of overtime pay mandated by the federal Fair Labor Standards Act (FLSA) — typically the extra "half" in time-and-a-half pay (e.g., if you earn $20/hour regularly and $30/hour for overtime, only the $10/hour premium is deductible).
Form 1040 Reporting: Eligible individuals will claim the deduction on the new Schedule 1-A (Form 1040), which is used for additional deductions, not on Schedule A (itemized deductions).
Payroll vs. Income Tax: The deduction reduces your federal taxable income when you file your return, but overtime pay is still subject to federal income tax withholding (though this may change in 2026), Social Security, and Medicare (F**A) taxes.
For further guidance, taxpayers can consult IRS.gov or refer to IRS Publication 17 (2025).

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01/13/2026

To qualify for the One Big Beautiful Bill Act car loan interest tax deduction, your vehicle and loan must meet all of the following criteria:



Requirement Description
Vehicle Type New car, minivan, van, SUV, pickup truck, or motorcycle
Original Use Must commence with taxpayer (new vehicle only)
Final Assembly Must occur in the United States
Weight Limit GVWR under 14,000 lbs
Loan Origination Must be originated after December 31, 2024
Loan Security Must have a first lien on the vehicle
Use Personal use only (not for fleet, commercial, or lease purposes)
VIN Reporting Vehicle Identification Number must be included on the tax return
Annual Deduction Limit Up to $10,000 per year
Income Phaseout Deduction reduced $200 per $1,000 of MAGI over $100,000 ($200,000 joint); fully phased out at $150,000 ($250,000 joint)
Related Party Loans Not eligible
Refinancing Allowed only up to original principal and must remain secured by same vehicle
Reporting Lender must provide required information to both IRS and borrower
Expiration Applies to tax years 2025 through 2028 only


Additional Details:
VIN Check: Vehicles with VINs starting with 1, 4, or 5 are U.S.-assembled.
Personal Use Only: No business, fleet, or commercial vehicles.
First Lien Loans Only: Leases and second mortgages do not qualify.
Above-the-Line Deduction: No need to itemize to claim this deduction.
New Purchases Only: Applies to vehicles purchased after December 31, 2024.
Reporting: VIN must be reported on your tax return.
Temporary: Applies only to tax years 2025–2028.

10/15/2025

Today is the day! Extension deadline. If you owe tomorrow you are late.

10/13/2025

It's that time of year. Returns on extension are due by the 15th.

09/02/2025

1065 and 1120 return deadline for returns on extension is due by the 15th of Sept. Here is your reminder to setup your appt so your not late filing. If you miss this deadline your penalty will figured from March 15.

08/26/2025

Kiplinger.com/taxes/adoption-tax-credit
OBBB

This is a good reading your thinking of adoption this year.

President Donald Trump's so-called 'One Big Beautiful Bill' included a key provision that boosts the adoption tax credit amount this year.

07/25/2025

Do not scan the code! This is a scam! If you need to file your annual filing you go to gueaxbiz.sos.la.gov

05/28/2025

Kirt Libby Fontenot

Elton- Murphy Hollingsworth, a beloved father, devout man of God, and cherished friend, passed away peacefully on May 27, 2025, at the age of 89. His life was rich with faith, family, and simple joys. Born on January 19, 1936, Murphy lived a life rooted in his faith. He was

04/15/2025

04/15/2025

https://youtu.be/HPMh3AO4Gm0

Two brothers. One mission. Watch the new trailer for The Accountant 2. See the movie first in exclusive Tax Day screenings, April 15, and everywhere in theat...

04/15/2025

Today's the day! Final day of this tax season. If you still need help filling your taxes we have two office opening at 10 to help you with that. Elton 336.368.6903 or Sulphur 337.888.3288.