Freedom Financial Tax, LLC

03/10/2026

We have heard that there is some confusion in understanding the senior deduction that applies to the 2025 taxes. To help the seniors in our community, below is an explanation to help you understand the deduction a little bit better.

If you have any questions, we will do our best to answer any questions that you have. You can give us a call at: 866-401-1090.
We are here to help because we care about our community and its members.

Understanding the New $6,000 Tax Deduction for Seniors:

The IRS has introduced a new tax deduction designed to help seniors lower their taxable income. Here is a simple explanation of how it works.

Who qualifies?
If you are age 65 or older by the end of the tax year, you may qualify for this additional deduction.

How much is the deduction?

$6,000 for a single senior taxpayer

$12,000 for a married couple if both spouses are age 65 or older

This deduction is meant to provide extra tax relief for seniors.

Is this the same as the current senior deduction?
No. Seniors already receive an additional standard deduction once they reach age 65.
This new $6,000 deduction is in addition to that existing benefit, meaning seniors may be able to deduct even more from their taxable income.

Do you have to itemize deductions?
No. The deduction can be taken whether you use the standard deduction or itemize your deductions.

Are there income limits?
Yes. The deduction begins to decrease for higher-income taxpayers.

It starts to phase out if income is more than $75,000 for single filers.

It starts to phase out if income is more than $150,000 for married couples filing jointly.

If income goes above certain higher limits, the deduction may be reduced or eliminated.

How does this help you?
A deduction lowers the amount of income the IRS taxes. This does not mean you receive $6,000 in cash, but it can reduce the amount of tax you owe.

Example:
If a 67-year-old taxpayer has $50,000 of income and qualifies for the $6,000 deduction, the IRS will treat them as if they earned $6,000 less when calculating their taxes.

When does it apply?
The deduction is scheduled to apply to tax years 2025 through 2028.

Where does the information come from?
These details are based on guidance from the Internal Revenue Service (IRS) and IRS publications that explain tax benefits for seniors.

If you are unsure whether you qualify, as tax preparers we can help or the IRS can help determine your eligibility.

03/06/2026

⚠️ Common Tax Mistakes to Avoid

Every year people accidentally:
• Forget a W-2 or 1099
• Miss valuable deductions
• File with incorrect information
• Wait until the last minute

A quick review before filing can save a lot of headaches later. If you’d like help making sure everything is correct, feel free to message us!

02/18/2026

🚨 Small Business Tax Myth 🚨

“If my business didn’t make a profit, I don’t owe taxes.”

❌ MYTH
Even if your business lost money, you may still owe taxes.

✅ TRUTH
Small business owners can still owe:

Self-employment tax (Social Security & Medicare)

Payroll taxes (if you have employees)

Sales tax you collected

Local or state business taxes

Personal income tax if you took draws or wages

💡 Losses can help reduce taxes, but they don’t automatically erase them.

👉 The real key is proper reporting, planning, and documentation—not just profit or loss.

📞 This is why tax planning matters all year, not just at filing time.

🚨 PA Small Business Tax Myth 🚨

“If I don’t charge sales tax, I don’t have to worry about it.”

❌ MYTH

✅ TRUTH
In Pennsylvania, many services and products are taxable—and not charging sales tax doesn’t make it go away.

You may still be responsible for:

Uncollected PA sales tax

Interest and penalties

Back filings if you weren’t registered correctly

Common PA surprises:

Certain repair, installation, and maintenance services

Digital products

Mixed taxable & non-taxable invoices

💡 The PA Department of Revenue expects businesses to know when tax applies, not guess.

👉 Sales tax mistakes are one of the most expensive errors we see for small businesses.

📞 A quick review now can save thousands later.

02/13/2026

🚨 Important Tax Update for Business Owners & Freelancers! 🚨

Starting with payments made after December 31, 2025, the IRS has raised the reporting threshold for nonemployee compensation on Form 1099-NEC from $600 to $2,000. This means you’ll only need to file a 1099-NEC for payments of $2,000 or more to independent contractors and other nonemployees in a calendar year.

What does this mean for you?

Business Owners: If you pay a freelancer, contractor, or other nonemployee less than $2,000 in a year, you are no longer required to file a 1099-NEC for that payee. This reduces paperwork and reporting obligations for smaller payments.
Freelancers & Contractors: You may receive fewer 1099-NEC forms if your clients pay you less than $2,000 in a year. However, you are still required to report all your income on your tax return, even if you don’t receive a 1099-NEC.
This change is designed to simplify reporting and reduce administrative burden for small businesses and gig workers. Make sure to update your records and processes for the 2026 tax year and beyond!

02/10/2026

📣 Important Update for Seniors – What the Big Beautiful Bill Means for You! 🇺🇸

The One Big Beautiful Bill signed into law in 2025 includes some new tax changes that many seniors will want to know about as you prepare your 2025 tax return this year. Here’s what it means for older Americans:

🧓 💰 Bigger Tax Deduction for Seniors (65+)
Starting with the 2025 tax year (filing in 2026), taxpayers aged 65 or older can claim an additional $6,000 deduction on top of the regular standard deduction. That’s $6,000 per senior — $12,000 for a couple filing jointly if both spouses are 65+.

📉 Income Limits & Phase-Outs
To get the full deduction, your modified adjusted gross income (MAGI) must be under:
• $75,000 for singles
• $150,000 for married couples filing jointly

If your income is above those limits, the deduction gradually phases out and goes away entirely at higher income levels.

📄 How It Works on Your Return
• You can take this senior deduction whether you itemize or use the standard deduction.
• This extra deduction doesn’t change the rules for how Social Security benefits themselves are taxed, but it can reduce your taxable income — which may mean paying little or no federal tax on your Social Security in many cases.

💡 Perks of the New Deduction
• Lower taxable income means more money stays in your pocket
• Helps many seniors with fixed incomes keep more of their Social Security and retirement income
• Applies now through the 2028 tax year unless Congress extends it

If you’re aged 65 or older (or file taxes for someone who is), this change could make a big difference this tax season! 📅🧾

02/06/2026

🚨 BIG TAX MYTH ALERT 🚨
“Getting a bigger refund means you paid less in taxes.”

❌ MYTH.
A big refund does NOT mean the IRS gave you “extra money”.

✅ TRUTH:
Your tax refund is simply your own money coming back to you because too much was withheld from your paycheck during the year.

Think of it like this 👇
💸 You loaned the IRS money all year — interest-free.
📆 They’re just paying you back now.

💡 What actually matters:
✔️ Paying the right amount of tax
✔️ Using credits & deductions correctly
✔️ Smart tax planning (not over-withholding)

A smaller refund — or even breaking even — can actually mean your money stayed in your pocket all year, not the government’s.

📌 Bottom line:
Refund size ≠ tax savings
Tax strategy = where the real win is 🏆

Have questions about your withholding or credits? That’s what we’re here for 😊

02/04/2026

💡 Why Is the IRS Sending Some Refund Money Later This Year? 💡

If you qualify for the Earned Income Tax Credit (EITC) or the Child Tax Credit (CTC/Additional CTC), you may notice your refund doesn’t come all at once — and that’s normal.

📌 Here’s why:
By law, the IRS is required to hold refunds that include EITC or the refundable portion of the Child Tax Credit until they finish extra verification. This helps prevent fraud and ensures the credits are paid correctly.

🗓️ What to expect:
• Tax returns can still be filed early
• The IRS typically releases these refunds starting mid-to-late February
• Some taxpayers may see their refund split into multiple payments

💰 Good news:
You’re not losing money — it’s still your refund. It’s just being released a little later due to federal processing rules.

👉 Tip: Use Where’s My Refund? on IRS.gov for the most accurate updates — not social media rumors 😉

If you have questions about your refund, credits you qualify for, or how to plan around the timing, we’re here to help! 💙

Pay your taxes. Get your refund status. Find IRS forms and answers to tax questions. We help you understand and meet your federal tax responsibilities.

01/27/2026

⏰You’ve heard the headlines: "No Tax on Overtime." But when you look at your paycheck, those taxes are still being taken out! What gives? 🤔

For our first , let’s clear up the confusion.

The new law (the OBBB Act) doesn't make overtime "tax-free" on your weekly paycheck. Instead, it creates a federal tax deduction you claim when you file your 2025 return this year!

Here is the 60-second breakdown:

The "Half" Rule: You can only deduct the "premium" portion. If you make $20/hr and $30/hr for OT, only that extra $10 is deductible.

- The Limit: You can deduct up to $12,500 ($25,000 if married) of that OT premium.

- Paycheck Reality: Your employer is still required to withhold taxes like normal. You get the benefit back as part of your refund (or a lower tax bill) when you file with us!

- The Bottom Line: Don’t leave money on the table. If you worked hard on those extra shifts last year, make sure you're claiming every dollar you're entitled to.

👇 Have questions about your specific OT? Drop a comment or DM us to book your filing appointment!

12/24/2025

Reminder at the end of the year for 2025 for all employers and employees about overtime pay:

For 2025 the laws were made to late in the year to give the IRS time to make the changes for the W2 forms.
For 2025 there will be no separate reporting on the W2 itself. The adjustments on the W2 form will be made in 2026. The employee and the employer are responsible for providing their tax accountant with a breakdown showing difference in wages.

It is important to know the only portion of the overtime income that is not taxable is the portion that is in addition to their regulars wages. For example: if somebody gets paid $20.00 an hour normally and their overtime rate is $30.00 an hour, only the $10.00 is not taxable.

Workers who receive overtime pay can deduct up to $12,500 from their taxable income. The deduction begins to get phased out for individuals making more than $150,000 and married couples filing jointly at $300,000. The deduction will only be available for the 2025 to 2028 tax seasons.

12/24/2025

From our Freedom Financial family to yours!

12/01/2025

In order to keep our employees safe during the snowstorm, they will be working from home tomorrow and our office building will be closed. Please give us a call if you need to contact us at: 866-401-1090.
Thank you and stay safe!