Preferred Bookkeeping & Tax, Inc.

10/29/2025

ONE BIG BEAUTIFUL BILL ACT FOR 2025

An overview that will help communicate changes related to the One Big Beautiful Bill Act and items needed to make sure you and clients are prepared. Be Ready for New Law Changes & IRS Shifts

Let clients know: 2025 forms (W-2’s, 1099s, payroll returns) and withholding tables remain unchanged.

Let clients know: Changes resulting from this act are retroactive to January 2025

Senior Bonus Deduction: Collect age information for seniors (65+). They may be eligible for an additional standard deduction ($6,000 individual; $12,000 married) whether itemizing or not.

Tips and Overtime Deductions: For tipped/overtime workers, track cash tips and qualified overtime, deduct up to new caps: $25,000 (tips) and $12,500 (overtime) per individual—$25,000 each if married filing jointly.

Standard Deduction Adjustments: Updated for 2025—Singles: $15,000; Married Filing Jointly: $30,000; Head of Household: $22,500.

SALT Cap Expansion: The State and Local Tax deduction cap increased to $40,000 (temporary through ~2030), with phase-outs for high earners.

OBBBA Provisions:
• Permanent 20% QBI deduction for pass-through entities
• Full (100%) bonus depreciation and increased Section 179 expensing ($2.5M cap)
• Above-the-line deductions for interest on loans for U.S.-assembled vehicles (up to $10,000)

Estate & Gift Tax: Increases to the exemption amount—$13.99M in 2025, rising to $15M in 2026 (indexed going forward).

Verify standard deduction increases, retirement contribution limits (401(k): $23,500; plus catch- up limits: $7,500 or $11,250 if age 60–63), EITC, etc.

AMT Changes: Updated exemption amounts and phase-out thresholds must be flagged for high-income taxpayers.

Other Credits: Verify adoption credit ($17,280), foreign earned income exclusion ($130,000), and gift tax annual exclusion ($19,000).

1099-K & Reporting Rules: Starting in 2025, platforms must issue 1099-K when thresholds of 200+ transactions and $20,000 in payments are met. 1099-MISC/NEC thresholds rise to $2,000 in 2026.

Digital Communication & Document Submission: Additional forms will have direct deposit information this year to align with the executive order on paper check phaseout.

Online Sales Reporting: Online sellers should report all taxable income (income from sales) regardless of whether they received a 1099-K. The threshold has been restored to pre-2021 levels

10/29/2025

Since the 2017 Tax Cuts and Jobs Act (TCJA), most W-2 employees can no longer deduct UNREIMBURSED EMPLOYEE BUSINESS EXPENSES on their federal tax returns. However, certain categories of workers are still eligible for this deduction, and some states have different rules for their state income taxes.

Federal tax deductions through 2025

For the 2025 tax year, some types of employees can deduct qualifying unreimbursed business expenses on their federal tax return:

ARMED FORCES RESERVISTS: May deduct travel expenses for reserve duties more than 100 miles away from home.

QUALIFIED PERFORMING ARTISTS: Can deduct relevant expenses if they meet specific criteria regarding income, employers, and expense percentages.

FEE BASED GOVERNMENT OFFICIAL: State or local officials paid based on fees can deduct work-related costs.

DISABLED EMPLOYEES WITH IMPAIRMENT-RELATED WORK EXPENSES: Can deduct costs for care or services needed to work.

K-12 EDUCATORS: Those working at least 900 hours per school year can deduct up to $300 for expenses like classroom supplies. Beginning in 2026, only educators will retain this deduction.

02/11/2025

Good morning all. PSA: The beneficial ownership reporting requirements are still being fought over in the courts. It looks like beginning in 2025, there will be no tax on tips or no tax on social security benefits for seniors. The no tax on overtime is still being worked on. We will keep you updated on this site as more news becomes available.

01/27/2025

New tax season office hours are as follows:

Monday thru Thursday 10 - 8
Friday and Saturday 10 - 5
We do take dropoffs and walk-ins.

Jean's schedule fills up the fastest, so schedule your appointment with her early, even if you want it a month away. This way you have a time sslot reserved. Thank you for your continued support.

01/03/2025

Beginning January 13th, we will begin extended office hours which will be Monday thru Saturday from 10 - 5. Then on January 27th our tax season office hours will be as follows:

Monday thru Thursday 10 - 8
Friday and Saturday 10 - 5

We look forward to seeing you all soon!!

01/01/2025

Now that the page has turned to a new year, don't forget to make your tax appointment. please continue to check back here periodically as we will share any tax law changes and updates here. We will also share our tax season office hours soon. Be safe everyone!

12/09/2024

PSA to all of our business clients: If you own an S Corporation, C Corporation, Partnership or an LLC, there is a new report that must be filed. It is Beneficial Ownership Information Report (BOI). The original due date for this report was December 31, 2024. That date has been temporarily postponed due to some litigation in Texas. However, we don't know how long it will be postponed, and when it becomes mandatory again, how much time we'll have to comply. There are some pretty hefty fines and penalties for not late filing. Therefore, I have begun notifying all of you to get some required information for this report. If any of you want to reach out to me to get more details about the BOI report and what information I will need to complete it for you, feel free to call the office at 248-544-2606. Thanks, Jean

12/02/2024

Hey everyone. Your Christmas letters and calendar magnets should be out within the next couple of weeks. If anyone changed their address this year and still want a calendar, please message us here with the new address.

09/17/2024

Ok, Here's a friendly PSA: for all that filed an extension for their personal taxes, the filing deadline is October 15th. I have had so many calls about this in the last few days that I thought I'd share the information here

01/15/2024

Well it's that time of year again, and this is a pretty big anniversary for us at Preferred Bookkeeping & Tax, Inc. !! So, don't forget to call and make your appointments early. We love seeing all of our clients (old and new), so gather your paperwork and we will see you soon.

01/23/2023

https://www.kktv.com/2023/01/20/refund-shock-possible-2023-tax-season/

Experts warn tax refunds may be lower compared to previous years

12/05/2022

Good Morning everyone! I just wanted to let you all know that our Christmas mailing with your new calendars will be going out this week. Please call to make your appointments early, especially Jean's clients. Remember we do encourage drop offs if that would be easier. FYI Julie is having shoulder surgery next week so she is requesting that as many of her clients who can drop off do so. Especially the first month or so. Thank you all for the support you have given us over the last 29 years, we are very grateful for you all. Have a wonderful Holiday season!!

Jean