Tom Vignali CPA

10/07/2025

https://www.irs.gov/newsroom/irs-to-phase-out-paper-tax-refund-checks-starting-with-individual-taxpayers

IR-2025-94, Sept. 23, 2025 — The Internal Revenue Service, working with the U.S. Department of the Treasury, today announced that paper tax refund checks for individual taxpayers will be phased out beginning on Sept. 30, 2025, as required by Executive Order 14247, to the extent permitted by law.

10/02/2025

https://www.irs.gov/newsroom/treasury-irs-issue-guidance-listing-occupations-where-workers-customarily-and-regularly-receive-tips-under-the-one-big-beautiful-bill

IR-2025-92, Sept. 19, 2025 — The Department of the Treasury and the Internal Revenue Service today provided guidance on “no tax on tips” provision. The One, Big, Beautiful Bill proposed regulations identify occupations customarily and regularly receive tips and define “qualified tips” elig...

09/30/2025

https://www.irs.gov/newsroom/dont-forget-financial-and-tax-records-in-emergency-preparedness-plans

Tax Tip 2025-64, Sept. 25, 2025 — National Preparedness Month is coming to an end, but that shouldn’t limit people from planning for a potential emergency or disaster in the future.

09/25/2025

🌟 Work Opportunity Tax Credit (WOTC) 🌟

Looking to make a positive impact while benefiting your business? The Work Opportunity Tax Credit (WOTC) is here to help! Available until the end of 2025, this federal tax credit encourages employers to hire individuals from specific groups facing significant barriers to employment.

🔹 Credit Limitations and Eligibility:
For taxable businesses, the credit is limited to the income tax liability, with unused credits subject to carry-back and carry-forward rules. Tax-exempt organizations can claim the credit only for hiring qualified veterans before 2026, limited to their share of Social Security tax on wages paid to qualifying employees 1.

🔹 Certification Process:
Employers must obtain certification that a new hire belongs to an eligible group by submitting IRS Form 8850 to their state workforce agency within 28 days of the employee starting work 2.

🔹 Eligible Groups:

The credit applies to hiring individuals from groups such as summer youth in Empowerment Zones, vocational rehabilitation referrals, designated community residents, qualified unemployed veterans, formerly incarcerated individuals, recipients of Temporary Assistance for Needy Families, Supplemental Security Income, Supplemental Nutrition Assistance Program benefits, and those experiencing long-term unemployment or family assistance 3 4 5 6 7 8 9 10 11 12.
Take advantage of this opportunity to support your community and grow your business! 🌟

09/23/2025

📢 Exciting News for 2025! 📢

Starting in 2025, new tax deductions are here to provide extra financial relief for seniors, vehicle purchasers, overtime earners, and tipped employees! 🚗💼💰
🌟 Senior Deduction: If you're 65 or older, you can claim an additional $6,000 deduction (double for married couples). Income phase-outs start at $75,000 ($150,000 for joint filers).

🚗 Car Loan Interest Deduction: Interest on loans for qualified vehicles (assembled in the U.S. and under 14,000 pounds) is deductible up to $10,000 annually. Phase-outs begin at $100,000 ($200,000 for joint filers).

💼 Overtime Compensation Deduction: Deduct qualified overtime pay exceeding the regular rate, with a max deduction of $12,500 ($25,000 for joint filers). Income phase-outs start at $150,000 ($300,000 for joint filers).

💰 Tip Income Deduction: Employees and self-employed individuals in tip-based jobs can deduct qualified cash tips, with a max annual deduction of $25,000. Income phase-outs at $150,000 ($300,000 for joint filers).
Stay informed and make the most of these new deductions! 💡💸



Feel free to share this post with anyone who might benefit from these new deductions! 📲✨

09/18/2025

Employers may help with college expenses through educational assistance programs

The IRS provided information on how employers can use educational assistance programs to help employees with college expenses, including student loan debt, tax-free.

Eligible expenses include books, equipment, supplies, tuition, fees, and qualified education loans, with a tax-free benefit limit of $5,250 per employee per year (subject to cost-of-living adjustments after 2026).

Payments can be made directly to educational providers, lenders, or employees, but certain items like meals, lodging, transportation, and personal tools are ineligible.

Additional details and requirements are available in IRS Publication 15-B and Publication 970, with links to frequently asked questions and a sample plan.

09/15/2025

Starting in 2026, individuals will face several tax changes due to the expiration of the Tax Cuts and Jobs Act of 2017, including an increase in the top income tax rate from 37% to 39.6%, the expiration of the $10,000 cap on state and local tax deductions which may encourage more itemizing, and reduced Alternative Minimum Tax exemptions potentially affecting more taxpayers; consulting a tax advisor for planning ahead is recommended.

09/11/2025

🏡 Attention Rhode Island Hosts & Travelers!
Starting January 1, 2026, new tax rules will apply to short-term rentals (30 days or less):
🔹 Local Hotel Tax increases from 1% to 2%
🔹 New 5% Whole Home Rental Tax for entire home rentals (houses, condos, etc.)
🔹 Room rentals still taxed at 5% state hotel tax
🔹 All short-term rentals also subject to 7% sales tax
📌 Taxes are based on stay dates, not booking dates—so even if you book in 2025, 2026 rates apply if the stay is in 2026.
📞 Questions? Contact RI Division of Taxation:
📧 [email protected]
📱 (401) 574-8955
✅ Be prepared and share this update with fellow hosts & guests!

09/09/2025

Contributing to a 529 education savings plan allows gifting to beneficiaries of any age without federal gift tax, including the option to contribute up to five years’ worth of the annual gift tax exclusion at once under certain conditions. These funds can be used for qualified higher education expenses at eligible institutions or up to $10,000 annually for primary or secondary school tuition. It is advisable to review and adjust 529 account investments and contributions to stay aligned with education goals, especially if funds will be needed soon.

09/05/2025

If the value of the investments in your traditional IRA is temporarily down, it may be a good time to consider converting.

Converting a traditional IRA to a Roth IRA can be advantageous, especially when the investment value is temporarily low, but it requires paying federal income taxes on deductible contributions and earnings at conversion. While conversions do not trigger the 10% early distribution penalty immediately, this penalty may apply if converted amounts are withdrawn from the Roth IRA before a five-year holding period and reaching age 59½. Qualified Roth IRA distributions are generally tax-free if the account holder is at least 59½ years old and five years have passed since the first Roth contribution or conversion, with the conversion deadline being December 31 under current federal tax law.

09/01/2025

Tax-loss harvesting can help investors offset capital gains by selling underperforming assets, but it should align with long-term goals rather than just tax motives. To avoid disallowed losses under wash sale rules, investors must not repurchase similar assets within 30 days before or after the sale. Additionally, losses exceeding gains can offset up to $3,000 of ordinary income annually, with special documentation required for worthless private company shares. Consulting a tax advisor well before year-end is advised to navigate these complexities effectively.

08/28/2025

Health savings accounts (HSAs) and flexible spending accounts (FSAs) offer access to pre-tax dollars that can be used not only for medical expenses but also for items like sunscreen, acne patches, and red light masks. It is advisable to check the balance of these accounts, especially FSAs, as funds typically expire at the end of the year, making it beneficial to understand what expenses are covered.