JC Herren Co LLC

11/18/2025

Big Update for Charitable Giving Starting in Tax Year 2026

Starting January 1, 2026 (for the 2026 tax year), the new tax law (the One Big Beautiful Bill Act) changes how charitable deductions work:

• If you DO NOT itemize, you’ll still get a deduction—up to $1,000 (single) or $2,000 (joint) for cash contributions to a qualifying charitable organization. Noncash contributions and contributions to Donor-Advised Funds do not qualify.
• If you DO itemize: the first 0.5% of your AGI in charitable contributions (cash and noncash) won’t be deductible. Contributions eliminated by the new 0.5% floor carry-forward for 5 years.

Tax planning
If you’re thinking of giving a large gift, consider doing so in 2025 under the current rules so you maximize tax benefit.
Use a donor-advised fund, bunch your donations, and coordinate with any big income year ahead.

09/23/2025

New Auto Loan Interest Deduction for tax years 2025-2028 (four years)

HR1 One Big Beautiful Bill Act (OBBBA) was signed into law July 4, 2025. The new tax bill allows a temporary 4-year deduction for interest paid on auto loans for personal vehicles. This deduction is allowed even for taxpayers who do not itemize.

What the Deduction Is:
• Taxpayers can deduct up to $10,000/year in interest paid on qualifying auto loans.
• The deduction is an above the line deduction, meaning you do not need to itemize deductions to use it. The deduction reduces your taxable income directly.
• Loans must be originated after December 31, 2024.

• Qualified vehicles:
o Must be a new vehicle: cars, SUVs, pickup trucks, vans, or motorcycles. Vehicle must have a gross vehicle weight rating of less than 14,000 pounds, used vehicles are not eligible.
o Must have undergone final assembly in the United States. The Vehicle Identification Number (VIN) must be reported when claiming the deduction.
o The loan must be secured by a first lien on the vehicle. Leases, commercial loans, and loans from related parties often are excluded.
o Personal use only. Vehicles used for commercial, or fleet purposes do not qualify. Leased vehicles typically not eligible, since the lessee isn’t holding the “loan” in the same sense.

Income Phase-Out Applies:
• Full deduction available if your modified adjusted gross income (MAGI) is less than - Single filers: $100,000 (Joint Filers: $200,000)
• If you exceed those amounts, the deduction phases out. The reduction is approximately $200 of deduction lost for each $1,000 (or part thereof) of income over the threshold.
• The deduction is completely phased out once income reaches higher caps: around $150,000 (single) or $250,000 (joint filers).

08/05/2025

Energy Tax Credit Alert!
The HR1 One Big Beautiful Bill Act (OBBBA) repeals key green energy tax incentives. Deadlines:
- 🚗 Clean Vehicle Credits: Ends 9/30/2025
- 🏠 Energy-Efficient Home Improvement Credits (solar, geothermal, insulation, windows, doors, furnaces, and water heaters): Ends 12/31/2025
- 🏢 Energy-Efficient Commercial Building & New Home Credits: Ends 6/30/2026
Taxpayers planning to qualify for upgrades should act before the deadlines to claim the available benefits.

07/30/2025

New $6,000 Senior Tax Deduction for tax year 2025 – 2028 (four years)

HR1 One Big Beautiful Bill Act (OBBBA) was signed into law July 4, 2025. The new tax bill introduces a new benefit for older Americans: a $6,000 Senior Deduction for taxpayers age 65 and older by the end of the tax year. Both spouses can qualify for the senior tax deduction.

What it is:
An additional deduction on top of the standard deduction, designed to provide tax relief for seniors (also available if itemizing deductions on Sch A).

Income Phase-Out Applies:
This deduction begins to phase out for individuals with adjusted gross income (AGI) over $75,000 and phases out completely at $175,000. For married couples filing jointly, the phase-out begins at $150,000 and ends at $250,000.

What’s NOT changing:
There are no changes to how Social Security is taxed under HR1. Current rules remain the same.

02/08/2025

Your team at JCH is ready for your tax returns. Get to the front of the line by dropping off your papers in February. See you soon!

11/04/2024

IMPORTANT – If you have a business entity that was created with the filing of a document with the Secretary of State, you have a NEW FILING REQUIREMENT with the Treasury Department’s Financial Crimes Enforcement Network (FinCEN). Companies required to file this new report include S and C corporations, partnership, and multi-member/single member LLCs. The Beneficial Ownership Information (BOI) report is due 1/1/25 for entities created before 1/1/24.Failure to file by the deadline will result in penalties.

09/22/2024

Tax season will see another eclipse!

Skies were clear for last night's (9-17-24) partial lunar eclipse. While only 8% of the Moon passed into the Earth's shadow, the eclipse was very apparent.

On the early morning of March 14, 2025 we in the U.S. will see a Total Lunar Eclipse. Total means the entire Moon will pass into the Earth's umbral shadow. The partial eclipse will start around 12:10am CDT on Friday March 14th. Totality will begin around 1:27am, with maximum totality occurring at 1:58am and the entire Moon will stay in the umbral shadow until 2:33am. Then the Moon will start exiting the shadow and the partial eclipse ends at 3:50am.

04/09/2024

We took a tiny break from taxes to look at the solar eclipse here in Missouri. Ready for the last push before the 15th. Call us for an extension if you havent sent your papers in yet.

03/07/2024

https://share.newsbreak.com/6c6stfnt

Companies may be misleading taxpayers that wellness programs are considered medical...

01/31/2024

Nice checklist to use when preparing your taxes.

IR-2024-28, Jan. 30, 2024 —The Internal Revenue Service today offered a checklist to help taxpayers as they prepare to file their 2023 tax returns during filing season.