Vikram Kamdar dba finance wizard

03/27/2026

Enjoying Cherry Blosoom...

03/26/2026

Cherry Blosoom

02/16/2026

Delayed but better late than never.....
01/22/2026

Friends and clients



I am sorry for delayed information, as I had to study in detail the changes made in One, Big, Beautiful Bill provisions (OBBBA )



Here are some of the changes they may affect you.



Let us start with some laughter.

Big, Beautiful Bill Act ...



To start on funny note…Pictures say a thousand words..

21 big, beautiful cartoons about Trump's bill21 big, beautiful cartoons about Trump's billA Big Beautiful Bill by Jason Adam Katzenstein



Standard deduction increases

Tax year 2026 (Tax year 2025)



$32,200 for married couples filing jointly ($31,500)
$16,100 for single filers and married filing separately ($15,750)
$24,150 for heads of household ($23,625


Deduction

Overview of the deduction

Effective 2025 through 2028, individuals age 65 and older may claim an additional $6,000 deduction. (or $12,000 for a married couple if both spouses qualify).
This is in addition to the standard deduction for seniors available under existing law.
Phases out for taxpayers with modified adjusted gross income over $75,000 ($150,000 for joint filers).
Individual Income Tax Rates

· The seven federal tax brackets (10%, 12%, 22%, 24%, 32%, 35%, and 37%) are now permanent, with income thresholds adjusted for inflation.

· 2025 federal tax brackets

These brackets and rates apply to taxable income earned during 2025. The deadline for filing 2025 taxes will be April 15, 2026, or October 15, 2026, with an extension.

·

Tax rate

Single filer

Married filing jointly

(or surviving spouse)

Head of household

Married filing separately

10%

$0 to $11,925

$0 to $23,850

$0 to $17,000

$0 to $11,925

12%

$11,926 to $48,475

$23,851 to $96,950

$17,001 to $64,850

$11,926 to $48,475

22%

$48,476 to $103,350

$96,951 to $206,700

$64,851 to $103,350

$48,476 to $103,350

24%

$103,351 to $197,300

$206,701 to $394,600

$103,351 to $197,300

$103,351 to $197,300

32%

$197,301 to $250,525

$394,601 to $501,050

$197,301 to $250,500

$197,301 to $250,525

35%

$250,526 to $626,350

$501,051 to $751,600

$250,501 to $626,350

$250,526 to $375,800

37%

$626,351 or more

$751,601 or more

$626,351 or more

$375,801 or more



Clean Vehicle Credit

Not allowed for any vehicle acquired after September 30, 2025



health savings account participants

https://www.irs.gov/newsroom/treasury-irs-provide-guidance-on-new-tax-benefits-for-health-savings-account-participants-under-the-one-big-beautiful-bill



Individuals

More details

https://www.irs.gov/newsroom/one-big-beautiful-bill-provisions







Child & Dependent Care Credit

Allowed a credit for child and dependent care expenses, equal to 35% of qualified expenses reduced (not below 20%) by 1% for each $2,000 (or fraction thereof) by which adjusted gross income (AGI) exceeded $15,000.



Information Reporting Threshold

The reporting thresholds for 1099-MISC and 1099-NEC increase from $600 to $2,000 beginning in 2026.
The 2025 filing season still uses the old $600 threshold.


State & Local Tax (SALT) Cap

Increases limitation on SALT deduction to $40,000 for 2025 and $40,400 for 2026



Auto Loan Interest Deduction

For 2025–2028, individuals can deduct up to $10,000 annually in interest paid on loans for new, U.S.-assembled personal vehicles, enacted under the One, Big, Beautiful Bill. This deduction applies to loans originated after Dec. 31, 2024, for vehicles under 14,000 lbs. It phases out for taxpayers with Modified Adjusted Gross Income (MAGI) over $100,000 ($200,000 for joint filers).



Deduction for Tip Income

Creates deduction of up to $25,000 for qualified tips for individuals in traditionally and customarily tipped industries.



Deduction for Overtime Pay

Creates deduction for qualified overtime compensation (not including qualified tips), excluding highly compensated employees, for taxable years 2025 through 2028. Limits deduction to $12,500 of qualified overtime income ($25,000 for joint returns). Deduction available to itemizers and non-itemizers.



Charitable Contribution Deduction for Non-Itemizers

Reinstates the nonitemizer partial charitable contribution deduction of up to $300 ($600 for joint returns).



Personal Exemptions

Eliminates personal exemption deduction.

The One, Big, Beautiful Bill Act has a significant effect on your taxes, credits and deductions.

08/24/2024

How true

07/19/2024

I'm Opting Out too!
So now they are doing it, just announced on Channel 4 News. Facebook is charging all users starting Monday. You can do an opt-out by doing this. Hold your finger over this message and copy it. It can’t be shared. I do not give permission for Facebook to charge $4.99 a month to my account, also; all my pictures are my property of mine and NOT Facebook's!!! Opt-out Special thanks to Larry for this legal advice… and to Tim Barker for posting this information:
Due to the fact everyone is slowly getting hi-jacked, yeah hi-jacked not hacked, they're flat out hi-jacking our accounts, even more now.
Just in case Notice: An attorney advised us to post this. The violation of privacy can be punished by law. NOTE: Facebook Meta is now a public entity. All members must post a note like this. If you do not publish a statement at least once, it will be technically understood that you are allowing the use of your photos, as well as the information contained in your profile status updates.
I HEREBY STATE THAT I DO NOT GIVE FACEBOOK META MY PERMISSION TO USE ANY OF MY PERSONAL DATA OR PHOTOS.
Copy and paste, do not share. I am getting more sales ad posts than friends' posts. Hold your finger anywhere in this post and click ′′ copy ". Go to your page where it says "What's on your mind." Tap your finger anywhere in the blank field. Click paste. This upgrades the system.

11/11/2021

FRIENDS

2021 was tough year for me. India visit (right in peak tax season), Fracture of C1, C2, Neck to waist brace for 5 months took toll on health, business,
extended tax season etc. Some friends, not keen on extension, had experience with other tax preparers. I welcome back with open arms to high quality
of tax preparation. I am sincerely thankful to those you stood by me in my difficult times.

But now your favorite neighborhood Taxman is back in action and ready to help you file your tax returns in 2021 tax season.

I am mentioning some of changes which might affect your 2021 taxes, hereunder.

There are lots of changes for 2021 tax season.

If you have any questions please feel free to email me.



CHILD TAX CREDIT

The $2,000-per-child credit rises to $3,000…$3,600 for children under age 6…and 17-year-olds qualify. The credit is fully refundable, and IRS is required to pay 50% of it in advance to qualifying families.

The higher credit begins to phase out at AGIs of

$75,000 for singles,

$112,500 for household heads and

$150,000 for joint filers.

The credit is reduced $50 for each $1,000 of AGI over the applicable threshold amounts. The phaseout applies to the $1,000 or $1,600 increased credit amount for 2021 and not to the $2,000 credit. Families who aren’t eligible for the $3,000 or $3,600 credit, but who have AGIs at or below $400,000 on joint returns or $200,000 on others, still get the $2,000 credit.



STIMULUS CHECKS

Millions of taxpayers got a third round of stimulus checks of $1,400 for singles

and household heads and $2,800 for joint filers, plus $1,400 more for each dependent.

The money isn’t taxable. It is an advance payment of a tax credit on the 2021 return.



CHARITY

The following easings on cash gifts to charity in 2020 also apply for 2021:

Nonitemizers can write off up to $300 of charitable cash contributions.

For 2021 only, the ceiling is $600 for married couples who file a joint return.

The 60%-of-AGI limit on cash contributions by individuals is suspended.

The taxable income limit on charitable gifts of cash by C corps is 25%.



TAX BREAKS

A batch of tax breaks that were set to expire after 2020 are extended.

Some were extended permanently, some through 2025 and others for one year.

Among the permanent breaks: The 7.5% adjusted-gross-income threshold

for deducting medical expenses on Schedule A. Lower excise taxes on wine, beer

and liquor.

The deduction for energy-efficient improvements to commercial buildings.

Included in breaks extended through 2025



MEALS & ENTERTAINMENT

Businesses can deduct 100% of business meals in 2021 and 2022.

Congress suspended the 50% haircut for two years to encourage restaurant dining.

This includes client meals as well as meals for employees on business travel.



DEPENDENT CARE AND FSA

There is relief for health and dependent-care flexible spending arrangements.

Employers may opt for FSAs to permit carryover of unused amounts from 2020

to 2021, and from 2021 to 2022, and to give a 12-month grace period for unused funds.





STANDARD DEDUCTIONS

Standard deductions for 2021 rise a bit. Married couples get $25,100

plus $1,350 for each spouse age 65 or older. Singles claim $12,550…$14,250

if 65 or up. Household heads get $18,800 plus $1,700 once they reach age 65.

Blind people receive $1,350 more ($1,700 if unmarried and not a surviving spouse).



GIFT TAX

The gift tax exclusion remains $15,000 per donee. You can give up to $15,000

($30,000 if your spouse agrees) to each child, grandkid or any other person in 2021

without having to file a gift tax return or tap your lifetime estate and gift tax exemption.



TAX BRACKETS

Marrieds: If taxable income is

The tax is

Not more than $19,900

10% of taxable income

Over $19,900 but not more than $81,050

$1,990.00 + 12% of excess over $19,900

Over $81,050 but not more than $172,750

$9,328.00 + 22% of excess over $81,050

Over $172,750 but not more than $329,850

$29,502.00 + 24% of excess over $172,750

Over $329,850 but not more than $418,850

$67,206.00 + 32% of excess over $329,850

Over $418,850 but not more than $628,300

$95,686.00 + 35% of excess over $418,850

Over $628,300

$168,993.50 + 37% of excess over $628,300

Singles: If taxable income is

The tax is

Not more than $9,950

10% of taxable income

Over $9,950 but not more than $40,525

$995.00 + 12% of excess over $9,950

Over $40,525 but not more than $86,375

$4,664.00 + 22% of excess over $40,525

Over $86,375 but not more than $164,925

$14,751.00 + 24% of excess over $86,375

Over $164,925 but not more than $209,425

$33,603.00 + 32% of excess over $164,925

Over $209,425 but not more than $523,600

$47,843.00 + 35% of excess over $209,425

Over $523,600

$157,804.25 + 37% of excess over $523,600

Household Heads: If taxable income is

The tax is

Not more than $14,200

10% of taxable income

Over $14,200 but not more than $54,200

$1,420.00 +12% of excess over $14,200

Over $54,200 but not more than $86,350

$6,220.00 + 22% of excess over $54,200

Over $86,350 but not more than $164,900

$13,293.00 + 24% of excess over $86,350

Over $164,900 but not more than $209,400

$32,145.00 + 32% of excess over $164,900

Over $209,400 but not more than $523,600

$46,385.00 + 35% of excess over $209,400

Over $523,600

$156,355.00 + 37% of excess over $523,600

12/28/2017

Tax Reform Will Not Affect Tax Year 2017*
As a friendly reminder, the new tax reform bill will not affect the preparation of 2017 tax returns. *Exception: 100% bonus deductions are retroactive to September 27, 2017.

Closing acquisitions in December can have big benefit thanks to retroactive provisions of the Tax Cuts And Jobs Act.

12/26/2017

Find out your new tax bracket...

With the passing of the GOP tax bill, here are 5 important things to know about changes coming your way as a professional tax preparer.

Rates for the seven individual tax brackets have changed
The new rates are: 10%, 12%, 22%, 24%, 32%, 35% and 37%
Find out which bracket you (or your client) will belong to here
Personal Exemption is gone
Previously, you could claim a $4,050 exemption for your dependents, your spouse and yourself — that is gone
Child tax credit has expanded
Is now $2,000 for children under 17
Can be claimed in its entirety by single parents making less than $200k and married couples making less than $400k
New $500 tax credit
Taxpayers can claim a $500 temporary credit for non-child dependents such as elderly parents or adult children with a disability
Decrease in corporate tax rate
Cut from 35% to 21%
The alternative minimum tax for corporations has been eliminated all together

The GOP tax plan changes tax rates and income thresholds for individuals and families starting in 2018. Here's how.

12/20/2017

IT IS OFFICIAL NOW....

It's official.
Both chambers of Congress have now passed the Republican tax overhaul bill on strictly party-line votes. It's the first such overhaul in more than 30 years.
Next stop: President Trump's desk, where he is expected to sign it into law this week.
The tax overhaul -- which will affect all corners of the U.S. economy and everyone in it -- will have crossed the finish line in just 7 weeks since first being introduced.
The final bill still leans heavily toward tax cuts for corporations and business owners. But it also expands or restores some tax benefits for individuals relative to the earlier bills passed by the House and Senate.
The individual provisions would expire by the end of 2025, but most of the corporate provisions would be permanent.
All told, the final bill includes trillions in tax cuts, most of which but not all are offset by revenue-raising measures. The bill on net would increase deficits by an estimated $1.46 trillion over a decade, according to the nonpartisan Joint Committee on Taxation. That number would be much higher if, as Republicans assume, a future Congress does not allow the individual tax cuts to expire after 2025.
One important note: The bill would not affect 2017 taxes, for which Americans will start filing their returns in a month or so.
With that, here's a quick rundown of 16 key provisions in the final bill.
FOR INDIVIDUAL FILERS
1. Lowers (many) individual rates: The bill preserves seven tax brackets, but changes the rates that apply to: 10%, 12%, 22%, 24%, 32%, 35% and 37%.
Today's rates are 10%, 15%, 25%, 28%, 33%, 35% and 39.6%.
Here's how much income would apply to the new rates:
-- 10% (income up to $9,525 for individuals; up to $19,050 for married couples filing jointly)
-- 12% (over $9,525 to $38,700; over $19,050 to $77,400 for couples)
-- 22% (over $38,700 to $82,500; over $77,400 to $165,000 for couples)
-- 24% (over $82,500 to $157,500; over $165,000 to $315,000 for couples)
-- 32% (over $157,500 to $200,000; over $315,000 to $400,000 for couples)
-- 35% (over $200,000 to $500,000; over $400,000 to $600,000 for couples)
-- 37% (over $500,000; over $600,000 for couples)
2. Nearly doubles the standard deduction: For single filers, the bill increases it to $12,000 from $6,350 currently; for married couples filing jointly it increases to $24,000 from $12,700.
The net effect: The percentage of filers who choose to itemize would drop sharply, since the only reason to do so is if your deductions exceed your standard deduction.
3. Eliminates personal exemptions: Today you're allowed to claim a $4,050 personal exemption for yourself, your spouse and each of your dependents. Doing so lowers your taxable income and thus your tax burden. The GOP tax plan eliminates that option.
For families with three or more kids, that could mute if not negate any tax relief they might get as a result of other provisions in the bill.
4. Caps state and local tax deduction: The final bill will preserve the state and local tax deduction for anyone who itemizes, but it will cap the amount that may be deducted at $10,000. Today the deduction is unlimited for your state and local property taxes plus income or sales taxes.
The SALT break has been on the book for more than a century. The original House and Senate GOP bills sought to repeal it entirely to help pay for the tax cuts, but that met with stiff resistance from lawmakers in high-tax states.
Residents in the vast majority of counties across the country claim an average SALT deduction below $10,000, according to the Tax Foundation. So for low- and middle-income families who currently itemize because of their SALT deduction, they're likely to take the much higher standard deduction under the bill if it becomes law, unless their total itemized deductions, including SALT, top $12,000 if single or $24,000 if married filing jointly.
Preserving the break -- albeit with a cap -- is likely to provide more help to higher income households in high-tax states.
5. Expands child tax credit: The credit would be doubled to $2,000 for children under 17. It also would be made available to high earners because the bill would raise the income threshold under which filers may claim the full credit to $200,000 for single parents, up from $75,000 today; and to $400,000 for married couples, up from $110,000 today.
Like the first $1,000 of the child tax credit, $400 of the additional $1,000 also will be refundable, meaning a low- or middle-income family will be able get the money refunded to them if their federal income tax liability nets out at zero.
Even with the additional $400 in refundability, however, 10 million children from working low-income families would receive only an additional $75 in benefit under the bill, according to the Center on Budget and Policy Priorities estimates.
6. Creates temporary credit for non-child dependents: The bill would allow parents to take a $500 credit for each non-child dependent whom they're supporting, such as a child 17 or older, an ailing elderly parent or an adult child with a disability.
7. Lowers cap on mortgage interest deduction: If you take out a new mortgage on a first or second home you would only be allowed to deduct the interest on debt up to $750,000, down from $1 million today. Homeowners who already have a mortgage would be unaffected by the change.
The bill would no longer allow a deduction for the interest on home equity loans. Currently that's allowed on loans up to $100,000.
8. Curbs who's hit by AMT: Earlier bills called for the elimination of the Alternative Minimum Tax. The final version keeps it, but reduces the number of filers who would be hit by it by raising the income exemption levels to $70,300 for singles, up from $54,300 today; and to $109,400, up from $84,500, for married couples.
9. Preserves smaller but popular tax breaks: Earlier versions of the bill had proposed repealing the deductions for medical expenses, student loan interest and classroom supplies bought with a teacher's own money. They also would have repealed the tax-free status of tuition waivers for graduate students.
The final bill, however, preserves all of these as they are under the current code. And it actually expands the medical expense deduction for 2018 and 2019.
10. Exempts almost everybody from the estate tax: Unlike the House GOP bill, the final bill does not call for a repeal of the estate tax.
But it essentially eliminates it for all but the smallest number of people by doubling the amount of money exempt from the estate tax -- currently set at $5.49 million for individuals, and $10.98 million for married couples. Even at today's levels, only 0.2% of all estates ever end up being subject to the estate tax.
11. Slows inflation adjustments in tax code: The bill would use "chained CPI" to measure inflation, which is a slower measure than is used today. The net effect is your deductions, credits and exemptions will be worth less -- since the inflation adjusted dollars defining eligibility and maximum value would grow more slowly. It also would subject more of your income to higher rates in future years than would be the case under the current code.
12. Eliminates mandate to buy health insurance: There would no longer be a penalty for not buying insurance. While long a goal of Republicans to get rid of it, the measure also would help offset the cost of the tax bill. It is estimated to save money because it would reduce how much the federal government spends on insurance subsidies and Medicaid.
The Congressional Budget Office expects fewer consumers who qualify for subsidies will enroll on the Obamacare exchanges, and fewer people who are eligible for Medicaid will seek coverage and learn they can sign up for the program.
But policy experts also note that the mandate repeal could raise premiums because more healthy people might decide to skip buying insurance.
FOR BUSINESSES AND CORPORATIONS
13. Lowers tax burden on pass-through businesses: The tax burden on owners, partners and shareholders of S-corporations, LLCs and partnerships -- who pay their share of the business' taxes through their individual tax returns -- would be lowered by a 20% deduction, somewhat less than the 23% called for in the Senate-passed bill.
The 20% deduction would be prohibited for anyone in a service business -- unless their taxable income is less than $315,000 if married ($157,500 if single).
14. Includes rule to prevent abuse of pass-through tax break: If the owner or partner in a pass-through also draws a salary from the business, that money would be subject to ordinary income tax rates.
But to prevent people from recharacterizing their wage income as business profits to get the benefit of the pass-through deduction, the bill would place limits on how much income would qualify for the deduction.
Tax experts nevertheless have warned that this kind of anti-abuse measure still presents taxpayers with a lot of opportunities to game the system, and favors passive owners of a business over active owners who actually run things.
15. Slashes corporate rate: The bill cuts the corporate rate to 21% from 35%, starting next year. That's somewhat higher than the 20% called for earlier. The increase was made to free up some revenue to accommodate lawmaker demands on other provisions. The bill would also repeal the alternative minimum tax on corporations.
16. Change how U.S. multinationals are taxed: Today U.S. companies owe Uncle Sam tax on all their profits, regardless of where the income is earned. They're allowed to defer paying U.S. tax on their foreign profits until they bring the money home.
Many argue that this "worldwide" tax system puts American businesses at a disadvantage. That's because most foreign competitors come from countries with territorial tax systems, meaning they don't owe tax to their own governments on income they make offshore.
The final GOP bill proposes switching the U.S. to a territorial system. It also includes a number of anti-abuse provisions to prevent corporations with foreign profits from gaming the system.
In the meantime it would require companies to pay a one-time, low tax rate on their existing overseas profits -- 15.5% on cash assets and 8% on non-cash assets (e.g., equipment abroad in which profits were invested), slightly higher than the rates in the Senate- and House-passed bills.

IT

12/20/2017

The final bill still leans heavily toward tax cuts for corporations and business owners. But it also expands or restores some tax benefits for individuals relative to the earlier bills passed by the House and Senate.