Taxes By the Numbers LLC

12/04/2025

Tax season is just around the corner! Are you wondering what the new tax bill has in store for you? Do you have past tax returns to do? Do you want someone you can trust, that is thorough and that can find every deduction that applies to your situation? Let us know!! We are here for you!

11/12/2025

Navigating taxes can be daunting, but there’s a solution. Visit our website now for stress-free tax solutions that simplify the process and help you stay compliant.

08/01/2025

So, what does the One Big Beautiful Bill mean to you, as an individual?
- The income tax brackets and standard deductions remain similar and will continue to adjust for inflation
- The Child Tax Credit will continue to be higher, starting with this year, it will be $2200 for children under 17 and will increase with annual inflation adjustments and a portion will remail refundable.
- We will continue to not utilize miscellaneous itemized deductions except for the few that are in place currently.
- For those with sole proprietorships or Single Member LLC's businesses, the Qualified Business Income Deduction will remain in effect permanently
- The SALT (State and Local Tax Deductions) cap is temporarily increased to $20000, $40000 for married couples. It will revert back to the $10000 in 2030.
- Deductions for Tips - workers with eligible tips can deduct up to $25000 from federal income tax for the years 2025 - 2028, according to income limits.
- Deductions for Overtime Pay - works can deduct the premium portion of qualified overtime compensation up to $12500 for tax years 2025 - 2028.
- Senior Deduction of $6000 for taxpayers over 65 is available for the years 2025 - 2028
- For years 2025 -2028, a deduction of up to $10000 on auto loans for US-assembled vehicles taken after 2024, with income limits.
- Charitable deductions for non-itemizing taxpayers include a permanent deduction of $1000 ($2000 for married taxpayers). For taxpayers that itemize, charitable contributions that exceed .5% of taxable income is allowed.

These are the most used tax deductions for individuals, but does not encompass all of the OBBBA. Please consult your tax professional with any questions!

08/01/2025

And the OBBBA has impacted businesses as well:

The One Big Beautiful Bill Act (OBBBA) brings a mix of permanent and temporary changes that significantly impact businesses across various sectors. The overarching theme is a focus on encouraging domestic investment and providing tax certainty, though some provisions introduce new complexities.

Here's a breakdown of what the OBBBA means for businesses:

Key Permanent Provisions (primarily extending TCJA changes):

100% Bonus Depreciation: This is a major win for businesses. The OBBBA permanently allows businesses to elect 100% bonus depreciation for qualified property (e.g., machinery, equipment, certain short-lived assets) acquired and placed in service after January 19, 2025. This allows immediate expensing of the full cost of these assets in the year they are placed in service, significantly reducing taxable income and improving cash flow. This provides much-needed certainty for long-term capital planning.

Expensing of Domestic Research and Experimental (R&E) Costs: This highly anticipated change makes domestic R&E costs fully deductible in the year incurred, starting with the 2025 tax year. Previously, these costs had to be amortized over five years (or 15 years for foreign R&E). This is a significant benefit for innovation-driven businesses, freeing up capital for further investment in R&D. Foreign R&E still requires 15-year amortization.

Qualified Business Income (QBI) Deduction (Section 199A): The 20% deduction for qualified business income for owners of pass-through entities (S-corporations, partnerships, sole proprietorships) is made permanent. This provides stability for tax planning for these businesses. The OBBBA also adjusts the phase-in ranges for specified service trades or businesses and adds an inflation-adjusted minimum QBI deduction.

Business Interest Deduction Limitation (Section 163(j)): The OBBBA permanently returns to the more favorable "earnings before interest, taxes, depreciation, and amortization" (EBITDA) calculation for determining the adjusted taxable income (ATI) for the 30% business interest deduction limitation. This effectively increases the allowance for interest deductions, which is beneficial for businesses, especially those that are highly leveraged or financed by private equity.

Qualified Small Business Stock (QSBS) Exclusion: The OBBBA sweetens the incentive for investing in certain startups and small businesses. For QSBS acquired after July 4, 2025, the exclusion cap for capital gains is increased to the greater of $15 million (up from $10 million) or 10 times the investor's stock basis. It also introduces a tiered exclusion structure for earlier sales (50% for 3 years, 75% for 4 years, 100% for 5 years). This encourages investment and liquidity for founders, entrepreneurs, employees, and investors in qualified small businesses.

Employer-Provided Child Care Credit: The maximum employer-provided child care credit is permanently raised from 25% to 40% of qualified expenses, up to $500,000 per year (or 50% up to $600,000 for eligible small businesses). These caps will be adjusted annually for inflation. This is a significant incentive for businesses to offer childcare benefits to their employees.

Employer-Paid Student Loan Debt Exclusion: The exclusion from gross income for employees (and from wages for employment tax purposes for employers) for employer payments of student loans is made permanent, with the maximum annual exclusion of $5,250 adjusted annually for inflation after 2026.

Employer Credit for Paid Family and Medical Leave (FML): The employer credit for paid FML is made permanent after 2025. This allows employers to claim a credit for a portion of premiums for paid FML insurance.

New or Modified Provisions (some temporary):

100% Deduction for Qualified Production Property (Temporary): The OBBBA introduces a new temporary 100% deduction for certain newly constructed nonresidential real property used in "qualified production activities" (e.g., manufacturing, production, refining of tangible personal property in the US). This applies to construction beginning after January 19, 2025, and before January 1, 2029, with the property placed in service before January 1, 2031. This is a powerful incentive for domestic factory construction.

International Tax Provisions (FDDEI, NCTI, BEAT): The OBBBA makes permanent the Foreign-Derived Deduction Eligible Income (FDII) and Global Intangible Low-Taxed Income (GILTI) deductions, but renames them to Foreign-Derived Deduction Eligible Income (FDDEI) and Net CFC Tested Income (NCTI), respectively. It also slightly increases their effective tax rates to 14% and makes permanent the minimum Base Erosion and Anti-Abuse Tax (BEAT) at a rate of 10.5% starting in 2026. Businesses with international operations will need to model these changes carefully due to modified calculations and foreign tax credit limitations.

Clean Energy Tax Credits: The OBBBA curtails many clean energy tax credits and incentives, including those for wind and solar power, electric vehicles, and residential energy property, and limits their transferability. Some existing credits are phased out sooner. This could impact businesses in the renewable energy sector.

Employee Retention Credit (ERC): The OBBBA includes provisions related to the ERC, including an extended statute of limitations for certain claims (e.g., Q3 and Q4 2021 claims generally expire April 15, 2028).

Reporting Requirements: New reporting requirements are introduced for employers and other payors regarding the temporary deductions for tips and overtime pay.

Financial Reporting and Compliance Implications:

The OBBBA also carries significant implications for financial reporting and auditing. Businesses will need to:

Track Book-Tax Differences: The immediate expensing provisions will create temporary book-tax differences, leading to deferred tax assets or liabilities that must be carefully tracked and disclosed under ASC 740.

Review Disclosure Practices: Companies increasing R&D investments should revisit their disclosure practices and maintain transparency around accounting policies and estimates.

Strengthen Accounting Practices: Rigorous financial reporting and audit readiness are essential. This may involve improving segregation of duties, investing in scalable accounting systems, enhancing and enforcing accounting policies, and strengthening governance structures.

Overall:

The OBBBA is designed to be pro-growth and provide tax certainty for businesses by making many beneficial TCJA provisions permanent. It particularly sweetens incentives for investment in R&D, capital expenditures, and domestic production. However, businesses will need to carefully analyze the specific details of the bill, especially the temporary provisions and changes to international and clean energy tax rules, to fully understand their impact and ensure compliance. Consulting with tax and accounting professionals will be crucial for navigating these changes.

08/01/2025

The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, introduces significant and in some cases, permanent changes to the US tax code that affect individual taxpayers. Here's a breakdown of what it means for individuals:

Key Permanent Provisions (primarily extending TCJA changes):

Income Tax Rates and Brackets: The individual income tax brackets (10% to 37%) established by the 2017 Tax Cuts and Jobs Act (TCJA) are made permanent. These will continue to adjust for inflation annually.

Standard Deduction: The higher standard deduction amounts from the TCJA are permanently extended and slightly increased for 2025 ($15,750 for single, $23,625 for head of household, and $31,500 for married filing jointly), with annual inflation adjustments. This means many taxpayers will continue to find it more beneficial to take the standard deduction rather than itemize.

Child Tax Credit (CTC): The doubled CTC from the TCJA is made permanent, with an increase to $2,200 per qualifying child (under age 17) starting in 2025 and annual inflation adjustments. The refundable portion of the CTC is also made permanent.

Alternative Minimum Tax (AMT) Exemption: Higher AMT exemption amounts and phaseout thresholds are permanently extended.

Elimination of Miscellaneous Itemized Deductions: Most miscellaneous itemized deductions (e.g., investment advisory fees) remain eliminated.

Qualified Business Income (QBI) Deduction (Section 199A): The 20% deduction for qualified business income for non-corporate taxpayers is made permanent.

New or Modified Provisions (some temporary):

State and Local Tax (SALT) Deduction Cap: The SALT deduction cap is temporarily increased to $40,000 ($20,000 for married filing separately) for 2025, with a 1% annual increase through 2029. It will revert to $10,000 in 2030. There's also an income-based phaseout for high earners.

Deductions for Tips and Overtime Pay (Temporary):

Tip Income Deduction: Eligible workers can deduct up to $25,000 in reported cash tips from federal taxable income for tax years 2025-2028. This deduction is subject to income phase-outs ($150,000 MAGI for single filers, $300,000 for joint filers).

Overtime Pay Deduction: Taxpayers can deduct the "premium portion" of qualified overtime compensation, up to $12,500 ($25,000 for joint filers), for tax years 2025-2028. This also has income phase-outs.

Important Note: These are deductions from income, not exclusions, meaning the income is still subject to Social Security and Medicare taxes.

"Senior" Deduction (Temporary): A new deduction of $6,000 for seniors (age 65+) ($12,000 for qualified couples) is available for 2025-2028, phasing out for higher incomes.

Auto Loan Interest Deduction (Temporary): A deduction of up to $10,000 per year for interest on loans for US-assembled vehicles taken after 2024, with income limits. This applies from 2025-2028.

Charitable Deductions:

For itemizers, charitable contributions are deductible only if they exceed 0.5% of taxable income.

For non-itemizers, a permanent charitable deduction of up to $1,000 ($2,000 for joint filers) for cash donations to public charities begins in 2026.

Qualified Small Business Stock (QSBS): Expands exclusions for QSBS held for shorter periods (75% for 4 years, 50% for 3 years) for stock acquired after July 4, 2025. Increases the asset ceiling for QSBS to $75 million.

Education-Related Breaks:

Expands the definition of qualified expenses for tax-free distributions from Section 529 plans (e.g., post-secondary credentialing expenses).

Increases the annual limit on tax-free distributions for qualified elementary and secondary school expenses from $10,000 to $20,000 beginning in 2026.

Employer-paid student loan debt exclusion (up to $5,250) is retained.

Forgiven student loan debt is excluded from income only if due to death or permanent disability.

"Trump Accounts" for Children: New tax-free investment accounts can be opened for children under 18, with a maximum contribution of $5,000 per year and a one-time $1,000 federal contribution for children born between 2025 and 2028.

Medicaid and Health Coverage: The OBBBA does not extend enhanced premium tax credits for private health insurance, and it imposes new requirements and limitations on Medicaid eligibility, potentially leading to a loss of health coverage for millions of individuals.

Overall Impact:

The OBBBA aims to provide tax clarity and certainty by making many TCJA provisions permanent. It also introduces new deductions, particularly for workers with tip and overtime income, and for seniors. However, it also introduces new complexities, especially with the temporary nature of some deductions and changes to healthcare programs.

It's crucial for individual taxpayers to review the specific provisions of the OBBBA and consult with a tax professional to understand how these changes will impact their personal tax situation and to optimize their tax planning strategies.

07/15/2025

Taxes done? Questions about how the Big Beautiful Bill will affect you? Call, text or message us! Here are some highlights, and remember, not all changes are going into effect for the 2025 tax year!

No tax on tips or overtime wages
Starting this year, the first $25,000 of tips will be tax-deductible through 2028 with $150K income limit ($300K filing jointly).
Tips
Jobs considered tipped work are spelled out, such as food servers and beauticians.
Starting this year, up to $12,500 of extra overtime pay will be tax-deductible through 2028 with $150K income limit ($300K filing jointly).

Increased SALT deductions
Taxpayers can write off a portion of their state and local taxes, or SALT, from their federal taxes
Raises the cap from $10,000 to $40,000 and increases 1% annually.
Deduction starts in 2025 and falls back to $10,000 in 2029.

Deduct car loan interest
Car buyers could deduct up to $10,000 annually in car loan interest payments if they buy a vehicle assembled in the U.S.
The deduction phases out between $100K and $150K and between $200K and $250K if you file jointly.

Senior tax deduction
Through 2028, each person over 65 can deduct an additional $6,000.
The deduction begins phasing out at $75K ($150K if you file jointly).

Increased child tax credit
Raises the child tax credit from $2,000 to $2,200.
After 2025, it will be adjusted for inflation

And there's a lot more! If you have questions, we are here!

05/15/2025

Do you still need to file your taxes? Do you have tax questions? Message us! We are here to help!

12/05/2024

Do you own an LLC or Corporation? Did you know that the BOI Reporting is due by Jan1, 2025? If not done, the penalties can be steep! There is currently an injunction that may affect the deadline for this, but, just to be sure, we are assisting small businesses with this reporting requirement. Let us know if we can help you!

Published: October 10, 2024 | Last Updated: December 5, 2024
January 1 deadline approaching for reporting Beneficial Ownership Information

Are you one of one of millions of business owners who are affected by the Corporate Transparency Act (CTA)? If so, you may be required to report Beneficial Ownership Information (BOI) to Treasury’s Financial Crimes Enforcement Network (FinCEN). FinCEN has launched a nationwide public service campaign to bring this information to potentially impacted business owners. It is imperative that you are aware of the FinCEN reporting requirements and know where to access additional information. Failure to file (timely or at all) may result in hefty penalties.

What is the Corporate Transparency Act (CTA)?
The CTA was enacted in 2021. Its purpose is to create business ownership transparency by identifying individuals who have either direct or indirect ownership (“beneficial ownership”) in a company. The overall goal is to alleviate fraudulent and illegal activities. FinCEN began accepting BOI reports through their website in January 2024.

The CTA requires most existing U.S. businesses and foreign businesses that have registered to do business in the U.S. to disclose the required beneficial ownership information.

A reporting company created or registered to do business before January 1, 2024, will have until January 1, 2025, to file its initial beneficial ownership information report.

The timeframe for newer businesses to file is shorter. Companies created or registered in 2024 have 90 days to file this information, and those created or registered after January 1, 2025, have only 30 days to file.

Who is a Beneficial Owner?
A Beneficial Owner is anyone who directly or indirectly exercises substantial control over or owns or controls at least 25 percent interest in a business.

An individual exercises substantial control over a reporting company if they fall into any of the following categories:

The individual is a senior officer;
The individual has authority to appoint or remove certain officers or a majority of directors;
The individual is an important decision-maker; or
The individual has any other form of substantial control.
FinCEN provides additional details about each of these four reporting categories.

What companies are required to report under the CTA?
A company may need to report information about its beneficial owners if it is:

A corporation, a limited liability company, or was otherwise created in the United States by filing a document with a secretary of state or any similar office under the law of a state or Tribal jurisdiction; or
A foreign company registered to do business in any U.S. state or Tribal jurisdiction by such a filing.
Who is exempt from filing BOI?
There are 23 types of exempt entities. These entities are already subject to stringent federal and/or state regulations for reporting beneficial ownership. These exempt entities include, but are not limited to:

Accounting firms
Banks
Brokers / securities dealers
Credit unions
Governmental authorities
Insurance companies
Investments companies / advisors
Public utilities
Tax-exempt entities
Venture capital fund advisors
FinCEN’s Small Entity Compliance Guide includes a list of reporting company exemptions and checklists to help companies determine if they are exempt from the reporting requirements.

What information is required?
A reporting company is required to provide basic information for itself and all beneficial owners.

For the reporting company, the required information includes legal name, trade names, address, jurisdiction of registration, and its taxpayer identification number.

For the beneficial owners, the required information includes name, date of birth, residential address, and an identifying number from an identification document such as a passport or driver’s license.

How to Prepare and File BOI
FinCEN has created the BOI E-Filing system to electronically file the Beneficial Ownership Information Report.

What happens if I don’t file by the deadline?
Failure to file may become extremely costly, with civil penalties starting at $500 per day and criminal penalties of up to $10,000 and/or two years in prison.

Resources:
FinCEN Small Business Resources
FinCEN BOI Toolkit
Small Entity Compliance Guide
BOI FAQs
FinCEN YouTube Channel

12/02/2024

It’s getting that time!! Start getting your tax information together! Get with us if you aren’t sure what ok you need to gather! We are here to help!

10/07/2024

Maximize Your Tax Savings: Why You Should Consult a Tax Planning Professional

Are you getting the most out of your tax benefits? With the ever-changing tax rules, it’s easy to miss out on potential savings. A tax planning professional can help you navigate the complexities of the tax code and ensure that you’re taking advantage of every deduction, credit, and strategy available to you.

Here’s why consulting a tax planning professional is a smart move:

✅ Personalized Strategies: Tax professionals analyze your unique financial situation and tailor strategies to maximize your benefits, whether you're self-employed, an investor, or have other specific needs.

✅ Stay Updated with Changes: Tax laws are always changing, and missing out on a new credit or deduction could cost you. A professional stays up-to-date on the latest changes, ensuring that you don’t miss out.

✅ Avoid Costly Mistakes: Filing errors can be expensive, leading to penalties or missed opportunities. A tax professional can help ensure accuracy and compliance with all applicable regulations.

✅ Plan for the Future: Tax planning isn’t just about saving money today—it’s about preparing for tomorrow. A professional can help you create a long-term plan to minimize your tax burden in the future, ensuring more financial security down the road.

Don’t wait until tax season rolls around—get ahead of the game by consulting with a tax planning professional today. Make sure you’re keeping more of your hard-earned money in your pocket, year after year! 💰

Call now to connect with business.

10/07/2024

Hey everyone, just a friendly reminder that the tax season deadline is fast approaching! 🗓️ If you filed for an extension earlier this year, now is the time to get those tax returns submitted.

✅ Make sure to gather all your documents and file before the deadline to avoid any penalties or interest. If you need any help or have questions, now’s the time to reach out to a tax professional.

Don't wait until the last minute—let’s get it done! 💪

Send a message to learn more