Holl Bookkeeping & Tax Services

04/21/2026

I had a member tell me he spent two hours reviewing a cannabis client's tax position and found $100,000 in savings. Two hours. He charged $700 because his rate is $350 an hour and he couldn't justify billing more than the time he spent.

That math makes sense if you're selling hours. It makes no sense if you understand what actually happened. He didn't spend two hours finding that savings. He spent decades building the expertise that let him find it in two hours. A general accountant could have stared at the same returns for two weeks and missed it entirely. The $700 wasn't payment for the work. It was a fraction of a fraction of the value he delivered.

Pricing per hour is the biggest killer of actually making money in this business, and I tell our members that constantly. There's a concept I come back to called the impossible triangle: you can be cheap, fast, or excellent, but you only get to pick two. The Walmart model of accounting picks cheap and fast: lots of clients, low fees, minimal service. You end up with 40 clients paying you $500 a month and you're working 70 hours a week just to keep up. Our model picks fast and excellent. Fewer clients, higher fees, real advisory work that changes how they run their companies.

And hey, we’re not charging more because we want to abuse our position of trust, we’re charging more because it allows us to focus on a few clients completely. Would you rather pay $10,000 a month to a CFO who can save you a million dollars a year or $5000 a month to a bookkeeper who can’t tell if you’ve just overpaid that million?

The part that unlocks this is understanding where you sit on the value chain. When you walk into a discovery call and lead with "I do bookkeeping and bank reconciliations," you've described a cost. The business owner mentally files you next to their insurance bill. But when you lead with "I put more money in your pocket, I lower your tax bill, and I make sure your business is protected and running on accurate data," that's a completely different conversation even though the underlying work overlaps.

Then there's the risk multiplier. When a client is facing compliance issues, potential penalties, a complex multi-entity structure with cash controls that don't exist yet, the stakes go up and so does the value of getting it right. Criminal lawyers don't charge by the hour because they're keeping you out of jail. When you're the person standing between a cannabis operator and a catastrophic audit, you're providing that same kind of protection.

The real issue is almost never price. It's that the value hasn't been made visible yet. If you're helping a client save $100,000 with two hours of work, you can charge $5,000 for that engagement and the client will thank you. You saved them $95,000 they wouldn't have found on their own.

That's why Holl Bookkeeping and Tax Services Inc are here for you!

02/07/2026

Looking for referrals for Tax clients. Text 315 727 2531

Holl Bookkeeping Services can take a mess and give you back organization. We Love Numbers. We are certified in NYS and IRS for Monthly, quarterly & Annual taxes. We can tailor your needs to cut cost. to give you the stress free life. With 30+ years of experience with 10 of that in banking..

01/20/2026

W2s are coming in. People walking out my door with REFUNDS.. Set your appointment today, and get your money as soon as the government releases it. Text 315 727 2531, or PM me. Love to see you all, and a Few new clients as well.

Holl Bookkeeping Services can take a mess and give you back organization. We Love Numbers. We are certified in NYS and IRS for Monthly, quarterly & Annual taxes. We can tailor your needs to cut cost. to give you the stress free life. With 30+ years of experience with 10 of that in banking..

12/04/2025

The Night Before Tax Day! Happy Holidays Everyone!!

12/04/2025

Brand new rules for tax breaks on overtime and tip income are bound to drive taxpayers bonkers when trying to file their 2025 federal income tax returns next year.
Expect to face far more work and confusion when trying to figure out what income can — and cannot — be deducted for qualifying tips or overtime pay on 2025 federal income tax returns.
Sure, it sounds simple to hear phrases like "no tax on tips" and "no tax on overtime." But many people will be shocked when they discover the intricate rules — and lack of supporting paperwork — when filing their 2025 federal income tax returns early next year.
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One thing is clear: Not every dollar in overtime pay will qualify for a tax break. And not every dollar picked up in tips will get a tax break, either.
The Department of Treasury and the Internal Revenue Service issued some key guidance on Nov. 21 for upcoming tax rules relating to what many still call "no tax on tips" and "no tax on overtime."
The latest guidance included seven possible scenarios involving tips and overtime. And, the guidance, honestly, didn't cover every situation — including offering an example for when some overtime doesn't qualify for a tax break on your 2025 federal income tax return.
Yet, the information released, Friday Nov. 21, offers a glimpse into how much extra work taxpayers will need to do on their own to claim these deductions.
"The guidance confirms that 2025 will be messy and that final regs will likely tighten the rules later," said Tom O’Saben, enrolled agent and director of tax content and government relations for the National Association of Tax Professionals.
Many people are going to need to review their own records and run their own numbers to determine what to claim as a deduction for overtime pay.
"It could become confusing quickly if employers are unable to provide accurate overtime breakdowns, especially for early 2025," said Matt Hetherwick, chief program officer for the nonprofit Accounting Aid Society in Detroit.
His advice: Start gathering those pay stubs for 2025 now. Tax filers who don’t receive complete information from their employers will need to review their pay stubs and calendars and create a simple log showing the days and hours they worked overtime.
While it's late in the year, it doesn't hurt to begin keeping simple logs now, both for overtime hours and tip income.
"Good records will make filing easier and serve as supporting documentation if the IRS requests additional information later," Hetherwick said.
The 2025 filing season will come with risks, he said, for taxpayers who don’t maintain adequate records.
"Without logs or supporting documents, they may be vulnerable to an IRS audit or the disallowance of the deductions."
For 2025 only, employers will not be required to break out what overtime pay qualifies for the tax break and what overtime pay doesn't.
Beginning with 2026, employers will have to break out qualified overtime compensation as a separate line item by law. And tax filers will be able to refer to that paperwork when completing their 2026 returns in 2027.
"But taxpayers get no such help for 2025, which is why 2025 will be challenging," O'Saben said.
The tax breaks for tips and overtime — which were part of the One Big Beautiful Bill Act signed into law July 4 — are retroactive to Jan. 1 for 2025 tax returns. But few employers, if any, will go back and retroactively reconstruct your tip or overtime income, O'Saben predicted.
The simplest point to understand: It won't matter if you itemize all deductions or claim the standard deduction, as most people do.
The deductions for tip income and overtime will apply to both itemizers, as well as non-itemizers. And they will be treated as a below-the-line deduction that will be subtracted after your adjusted gross income has been determined. It will not reduce your AGI and not help you tap into some credits or other tax breaks.
As I reported earlier, taxpayers won't be able to deduct all the overtime pay they received when they picked up extra hours in 2025.
IRS Notice 2025-69 issued Nov. 21 makes it clear that qualified overtime is only the amount of money you receive that covers the “half” portion of the “one and one-half times” your pay for overtime, said Mark Luscombe, principal analyst for Wolters Kluwer Tax & Accounting in Riverwoods, Illinois.
Say you're paid $10 an hour at regular time. But you're paid an extra $5 an hour — half your regular rate — when working overtime. You only get to deduct that $5, not the entire $15 an hour earned during those overtime hours.
The twist many tax filers likely won't realize upfront: Workers are not able to claim all the extra money they're paid when they work overtime hours.
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In its guidance issued Nov. 21, the IRS outlined one example for a taxpayer called "Andrew" who receives a payroll statement from his employer that shows $5,000 as the "overtime premium" that he was paid during 2025.
A new, two-page, federal income tax form called Schedule 1-A will need to be completed when filing your 2025 federal income tax return to claim the new deduction for overtime pay, as well as new deductions for tip income, car loan interest, and a new tax break for those 65 and older.
The maximum annual deduction for overtime pay on your 2025 federal income tax return is $12,500 for single filers and $25,000 for those who are married filing a joint return.
The deduction phases out for taxpayers with modified adjusted gross income that exceeds $150,000 for singles and $300,000 for joint filers.
In some cases, tax filers will not be eligible to deduct any overtime.
Some employees are exempt from federal overtime rules, including those in executive positions, administrative jobs, professional fields, and many who work in sales and receive commissions. In these cases and others, O'Saben noted, any extra pay these employees receive for long hours is not required under the Fair Labor Standards Act so none qualifies for a tax break.
"Notice 2025-69 flags this explicitly: Overtime paid to FLSA-ineligible employees is not qualified overtime" when it comes to the new tax break, he said. That's true regardless of whether the employee was paid overtime under state law or other circumstances.
O'Saben pointed out that other situations that won't qualify for the new federal income tax deduction, including shift differentials for night or weekend work, hazard pay, on-call premiums and holiday pay premiums.
It's going to get complicated, and perhaps frustrating, for people who will need to take time to understand how they're paid and what tax rules apply to their situation.
"The biggest takeaway is how much responsibility the IRS is shifting to taxpayers for the 2025 year," O'Saben said.
The IRS explicitly acknowledges, he said, that the forms that employees receive regarding wages won’t match the law yet.
"The IRS is giving taxpayers multiple ways to reconstruct 2025 tip and overtime amounts, effectively admitting that the system isn’t ready," O'Saben said.
The new, special tax deductions on overtime and tip income are retroactive and apply to eligible income earned in all of 2025 — going back to Jan. 1.
Employers likely didn't update their systems for recording overtime and tip income early in the year with expectations of the new tax rules that rolled out in the summer. So, we're talking about a transitional tax year when people file 2025 income tax returns in 2026.
In case you missed it: Scams are exploding during the holidays. Here's how to stay safe.
How the tax break for tip income could work
Now, consider how detailed tax rules will apply to tip income.
"Reporting tip income for 2025 will be as confusing or even more confusing than reporting overtime," Luscombe said.
People who work as employees of a company, as well as gig workers or nonemployees, will have to choose among the options available, as detailed by the IRS, Luscombe said.
They will also need to determine whether they work in one of nearly 70 separate occupations of tipped workers, from bartenders to water taxi operators, that qualify for a tax deduction for tip income, based on IRS guidance.
The IRS said it is estimated that there are about 6 million workers who report tipped wages.
Yet, the paperwork tax filers receive could be lacking information they need. For example, Form 1099-K, which is issued to gig workers, does not separately identify the tips.
As a result, O'Saben said, taxpayers and tax professionals will need to check for information on a variety of spots — Box 7 on the W-2 that shows tips that are subject to Social Security and Medicare taxes, monthly Forms 4070 where employees report their tip income to employers, Box 14 on a W-2 entries if employers choose to show tips, Form 4137 for unreported tips, daily tip books and more.
"Many tipped workers don’t keep consistent tip logs, and gig economy platforms may not separate tip amounts in a way that meets IRS standards," O'Saben warned.
"Preparers will be piecing this together from whatever documentation exists," O'Saben said.
The IRS guidance issued Nov. 21 offered an example for "Ann," a restaurant server. According to the IRS example, Ann has $18,000 of Social Security tips reported in box 7 of her Form W-2 for 2025. Ann did not report any additional tips on Form 4137.
The new law stipulates that the maximum annual deduction for tip income is $25,000 per tax return — not $25,000 for each employee listed on a joint return. The deduction for tips also phases out for taxpayers with modified adjusted gross income over $150,000 and $300,000 for joint filers.
The IRS takes the position that a tip must be voluntary, not required by the employer or establishment, paid freely by the customer and given directly or indirectly to the worker to qualify for the tax break.
The IRS specifically states that qualified tips do not include some service charges, including when a restaurant imposes an automatic 18% service charge for large parties.
Many times, the restaurant will distribute that amount to waiters, the kitchen staff and others. But the IRS said if the charge is added with no option for the customer to disregard or modify it, the amounts distributed to the workers in this case are not qualified tips and cannot be eligible for the tax break.
No doubt, the tax breaks could lead to bigger tax refunds for many people next year after they file their 2025 federal income tax returns. But you're going to want to make sure to take the extra time necessary to claim the right deductions.
Contact personal finance columnist Susan Tompor: [email protected]. Follow her on X .
This article originally appeared on Detroit Free Press: New IRS rules on overtime and tips could complicate 2025 tax returns

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09/08/2025

Notable changes for tax year 2025
The tax year 2025 adjustments described below generally apply to income tax returns to be filed starting tax season 2026. The tax items for tax year 2025 of greatest interest to many taxpayers include the following dollar amounts:

Standard deductions. For single taxpayers and married individuals filing separately for tax year 2025, the standard deduction rises to $15,000 for 2025, an increase of $400 from 2024. For married couples filing jointly, the standard deduction rises to $30,000, an increase of $800 from tax year 2024. For heads of households, the standard deduction will be $22,500 for tax year 2025, an increase of $600 from the amount for tax year 2024.

Marginal rates. For tax year 2025, the top tax rate remains 37% for individual single taxpayers with incomes greater than $626,350 ($751,600 for married couples filing jointly). The other rates are:
35% for incomes over $250,525 ($501,050 for married couples filing jointly).
32% for incomes over $197,300 ($394,600 for married couples filing jointly).
24% for incomes over $103,350 ($206,700 for married couples filing jointly).
22% for incomes over $48,475 ($96,950 for married couples filing jointly).
12% for incomes over $11,925 ($23,850 for married couples filing jointly).
10% for incomes $11,925 or less ($23,850 or less for married couples filing jointly).

Alternative minimum tax exemption amounts. For tax year 2025, the exemption amount for unmarried individuals increases to $88,100 ($68,650 for married individuals filing separately) and begins to phase out at $626,350. For married couples filing jointly, the exemption amount increases to $137,000 and begins to phase out at $1,252,700.

Earned income tax credits. For qualifying taxpayers who have three or more qualifying children, the tax year 2025 maximum Earned Income Tax Credit amount is $8,046, an increase from $7,830 for tax year 2024. The revenue procedure contains a table providing maximum EITC amount for other categories, income thresholds and phase-outs.

Qualified transportation fringe benefit. For tax year 2025, the monthly limitation for the qualified transportation fringe benefit and the monthly limitation for qualified parking rises to $325, increasing from $315 in tax year 2024.

Health flexible spending cafeteria plans. For the taxable years beginning in 2025, the dollar limitation for employee salary reductions for contributions to health flexible spending arrangements rises to $3,300, increasing from $3,200 in tax year 2024. For cafeteria plans that permit the carryover of unused amounts, the maximum carryover amount rises to $660, increasing from $640 in tax year 2024.

Medical savings accounts. For tax year 2025, participants who have self-only coverage the plan must have an annual deductible that is not less than $2,850 (a $50 increase from the previous tax year), but not more than $4,300 (an increase of $150 from the previous tax year).

The maximum out-of-pocket expense amount rises to $5,700, increasing from $5,550 in tax year 2024.

For family coverage in tax year 2025, the annual deductible is not less than $5,700, increasing from $5,550 in tax year 2024; however, the deductible cannot be more than $8,550, an increase of $200 versus the limit for tax year 2024. For family coverage, the out-of-pocket expense limit is $10,500 for tax year 2025, rising from $10,200 in tax year 2024.


Foreign earned income exclusion. For tax year 2025, the foreign earned income exclusion increases to $130,000, from $126,500 in tax year 2024.


Estate tax credits. Estates of decedents who die during 2025 have a basic exclusion amount of $13,990,000, increased from $13,610,000 for estates of decedents who died in 2024.


Annual exclusion for gifts increases to $19,000 for calendar year 2025, rising from $18,000 for calendar year 2024.


Adoption credits. For tax year 2025, the maximum credit allowed for an adoption of a child with special needs is the amount of qualified adoption expenses up to $17,280, increased from $16,810 for tax year 2024.

Unchanged for tax year 2025
By statute, certain items that were indexed for inflation in the past are currently not adjusted.

Personal exemptions for tax year 2025 remain at 0, as in tax year 2024. The elimination of the personal exemption was a provision in the Tax Cuts and Jobs Act of 2017.

Itemized deductions. There is no limitation on itemized deductions for tax year 2025, as in tax year 2024 and preceding, to tax year 2018. The limitation on itemized deductions was eliminated by the Tax Cuts and Jobs Act of 2017.

Lifetime learning credits. The modified adjusted gross income amount used by taxpayers to determine the reduction in the Lifetime Learning Credit provided in Sec. 25A(d)(1) of the Internal Revenue Code is not adjusted for inflation for taxable years beginning after Dec. 31, 2020. The Lifetime Learning Credit is phased out for taxpayers with modified adjusted gross income in excess of $80,000 ($160,000 for joint returns).

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07/16/2025

What's in the 'Big Beautiful Bill'
That the lowest-income households will be left worse off because of cuts to Medicaid and SNAP, formerly known as food stamps. Those Americans could lose $27,500 over a lifetime, while the highest-income households would gain more than $65,000.
In addition to extending the tax cuts from the 2017 tax bill,
SALT ( State And Local Tax Deduction)
Americans who live in high-tax states such as California, New York and New Jersey will get a bigger income tax deduction for state and local taxes, known as SALT.
That tax break will last only through 2028.
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.
It raised the SALT deduction cap to $40,000 from $10,000 with incomes up to $500,000 through 2029 and will annually adjust the cap for inflation. It also revived a tax loophole allowing pass-through entities to pay state and local taxes and deduct them so individuals can avoid SALT caps.
CAR BUYERS
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.
Bigger estate tax exemption
Allows people to pass $15 million tax-free to their heirs.
Without the change, the almost $14 million exemption would have expired at the end of 2025 and reverted to just over $7 million.
Increased child tax credit
Raises the child tax credit from $2,000 to $2,200.
After 2025, it will be adjusted for inflation.
Savings accounts for kids
Children under 8 would receive $1,000 each to open special savings accounts.
Tax-free contributions to account limited to $5,000 annually until the child is 18.
Savings can be used after the child turns 18.
Private school vouchers
Up to $5,000 in tax credits to use for education from private schools to homeschooling.
Who is eligible: Families who make less than three times their local median income.
The deduction begins phasing out at $75K ($150K if you file jointly).
If your income falls
below $58,000, you’re likely to lose benefits from programs such as Medicaid, health insurance market-places, supplemental nutritional assistance program (SNAP) and students loans.
Average changes in 2030 after-tax household income:
The ones who benefit from this: If your income is in the top 0.1%, you’ll have an even greater benefit in 2027. You'll save $301,550, or 2.3%—partially because of other changes that will sunset by 2030.
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).
Permanently raises standard deduction to $15,750 for individuals, $31,500 for married couples and $23,625 for heads of households.
After 2025, it will be adjusted for inflation.
The tax break applies to workers who “customarily and regularly" receive tips − servers, for example. Workers can deduct up to $25,000 worth of tips, with those who make more than $150,000 per year eligible for a reduced deduction.
The bill also creates a new deduction for overtime pay through 2028. The deduction is capped at $12,500, with workers who make more than $150,000 eligible for smaller deductions.
Because the tax cut would not apply to payroll taxes, the roughly 37% of tipped workers who don't make enough to pay federal income taxes would see no benefits from the tax break,
Municipal finance and infrastructure
• Municipal bonds: Despite numerous discussions about eliminating the tax-exempt status for municipal bonds, the final bill did not include that provision and retained the tax-exempt status for municipal bonds.
• Inflation Reduction Act (IRA) tax credits: The law repeals or restricts many tax credits that qualified for elective pay, which allows cities and other tax-exempt entities to receive direct payments in lieu of tax credits for certain energy and climate resiliency projects. While the elective pay provision is unchanged, the law imposes more aggressive phase-out timelines for certain credits and eliminates others entirely, including the credit for commercial clean vehicles.
• Elimination of certain grants: The law rescinds unobligated funds from several IRA programs and eliminates specific initiatives, including the Greenhouse Gas Reduction Fund, Environmental Justice Block Grants, Climate Pollution Reduction Grants, State-Based Home Energy Efficiency Contractor Training Grants, and the Neighborhood Access and Equity Program.
Housing and economic development
• Expansion of Low-Income Housing Tax Credits: The law increases allocations for 9% Low-Income Housing Tax Credit properties by 12% and lowers the private activity bond financing threshold from 50% to 25% of land and building costs for properties placed into service after Dec. 31, 2025.
• Opportunity Zones: The law makes permanent the 2017-era Opportunity Zones program, which offers tax benefits for reinvesting capital gains in designated communities. It also eliminates capital gains taxes on investments held in these zones for at least 10 years.
• National Environmental Policy Act: A new White House Council on Environmental Equality program will allow project sponsors to pay an optional fee for a fast-tracked environmental review process.
Other issues
• AI regulation preemption: A House proposal to impose a 10-year moratorium on state-level regulation of artificial intelligence systems was removed by the Senate and did not make it into the final bill.
• No tax on overtime and tips: The law allows employees who regularly receive tips to deduct up to $25,000 in tips from their federal taxable income. It also permits a deduction of up to $12,500 in overtime pay. Learn more about the new law regarding taxing overtime and tips.
• Medicaid and Supplemental Nutrition Assistance Program (SNAP): The law requires states to implement work requirements for Medicaid and SNAP participants and shifts more administrative and financial responsibility to states. States may also bear a larger share of Medicaid program costs as federal contributions decrease.
Some impacts of the law are immediately clear, such as changes to the clean energy tax credits and the elimination of many IRA-funded grant and loan programs. Others, including potential ramifications of Medicaid funding cuts, are less certain.
Reference:
https://www.usatoday.com/.../trump-big.../84461981007/
https://www.lmc.org/.../the-one-big-beautiful-bill-is.../

The expansive, nearly 900-page bill passed by Congress and signed into law by President Trump is likely to affect city budgets, services, and infrastructure planning.

07/16/2025

Student loan payments to change from August 1: what to know
Experts have warned the return of accruing student loan interest could have major implications on the lives of young adults, and America's population as a whole—from delaying family formation to causing them to stop buying prescription medication.
On August 1, the Trump administration will resume interest charges on the accounts of around 8 million borrowers, who had previously been granted an interest-free forbearance period under the Biden administration's Saving on a Valuable Education (SAVE) Plan.
The Trump administration has deemed the SAVE plan "illegal," saying it intends to bring back "fiscal responsibility to the federal student loan portfolio."
When approached for comment, the Department of Education pointed Newsweek to its press release on the subject containing a statement from U.S. Secretary of Education Linda McMahon.
"For years, the Biden Administration used so-called 'loan forgiveness' promises to win votes, but federal courts repeatedly ruled that those actions were unlawful," McMahon said.
"Congress designed these programs to ensure that borrowers repay their loans, yet the Biden Administration tried to illegally force taxpayers to foot the bill instead," she added.
Why It Matters
Overall, the change will see borrowers being charged more than $27 billion in interest over the next 12 months, which will have wide repercussions on the lives of students. For example, the financial challenges and distress from student loan debt was found to reduce marriage and childbearing among young adults in a study by the Council on Contemporary Families.
What To Know
Former President Joe Biden established the SAVE plan to help offset the financial burden placed on students. Earlier this year the plan was barred due to a federal court injunction, although the court did not give a conclusion on the legality of the plan and halted it while it was being challenged in court.
The Trump administration said bringing back the accrual of interest rate on loans was to "comply with a federal court injunction that has blocked implementation of the SAVE Plan, including the Department's action to put SAVE borrowers in a zero percent interest rate status."
The court has not mandated any order to resume interest, although its injunction was reported as still in place at the end of last month. "Due to ongoing litigation, SAVE borrowers do not yet know when their administrative forbearance will end and payments will resume," Nicholas Hillman, director of the Student Success Through Applied Research (SSTAR) Lab at University of Wisconsin-Madison, told Newsweek.
"All they can be certain of is their interest will now start to accrue, and that's cold comfort for borrowers who have—for no fault of their own—been stuck in administrative forbearance," he added.
The Department of Education is now also encouraging borrowers to opt-in to new repayment plans, seemingly in anticipation of the SAVE plan failing in court—describing the SAVE plan as a "false promise of loan cancellation and zero monthly payments, despite multiple federal courts striking down such policies."
The Trump administration is offering a new income-based Repayment Assistance Plan that will be available to borrowers by July 1, 2026.

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