Elmore CPA, PLLC

07/08/2025

There are many new tax laws, and we will dive into quite a bit of them in the coming days and weeks. For now, let’s build on those from yesterday that are relevant to individuals:

— Senior Citizen Deduction of $6,000 ($12,000 if MFJ and both are seniors) for 2025–2028:
• Taxpayers aged 65 and older
• Phases out for MAGI exceeding $75,000 (single) / $150,000 (MFJ)
• Fully phased out at $175,000 (single) / $350,000 (MFJ)
• No itemizing required

— Charitable Deduction for non-itemizers of $1,000 ($2,000 if MFJ) for 2026 and beyond:
• No MAGI phase-out
• Contributions must be made in cash to IRS-qualified charities

— Child and Dependent Care Credit increased to a maximum of $1,500 for one qualifying individual and $3,000 for two or more qualifying individuals for 2026 and beyond:
• Employment-related expense limit remains $3,000 (one qualifying individual) / $6,000 (two or more)
• Applicable percentage increases to a maximum of 50%
- This max. rate may be reduced to no less than 20% if AGI exceeds $75,000 (single) / $150,000 (MFJ)

— 529 Plan Enhancements:
• Qualified expenses expanded to include:
- Tuition at elementary and secondary schools
- Certain tutoring costs (subject to restrictions)
- Fees for AP exams, college-entrance & achievement tests
- Dual-enrollment fees & educational therapies for students with disabilities
- Other specified expenses
- Applies to all distributions made after July 4, 2025
• Annual tax-free distribution limit increased to $20,000 per beneficiary for distributions in tax years 2026 and beyond

That’s all for now. We will soon publish a post for small- and medium-sized business (SMB) owners.

Please contact us if you have any questions about these or any other tax laws, or for any other tax or accounting needs.

Disclaimer: This content is for informational purposes only and does not constitute professional tax advice. Consult a qualified tax advisor (such as us) before acting on any information provided here.

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07/07/2025

New tax laws passed July 4, 2025:

There are many new tax laws, and we will dive into all of them in the coming days and weeks. For now, let’s focus on a few relevant to individuals:

— Child Tax Credit increased to $2,200 per child under age 17
• Phased out for MAGI exceeding $200,000 (single) / $400,000 (MFJ)
• Fully phased out at $244,000 (single) / $444,000 (MFJ)
• Credit amount indexed for inflation

— State and Local Tax (SALT) deduction limit increased to $40,000 for the 2025 tax year
• Increases to $40,400 in 2026 and then grows by 10% of the prior year’s limit each year until reverting to $10,000 in 2030
• For 2025, phases down by 30% of MAGI above $500,000 but never below a $10,000 floor

— Tips deduction of $25,000 for 2025–2028
• Phased out for MAGI exceeding $150,000 (single) / $300,000 (MFJ)
• Fully phased out at $400,000 (single) / $550,000 (MFJ)
• Applies to cash and credit-card tips
• No itemizing required
• Still subject to Social Security, Medicare, and self-employment taxes
• Self-employed individuals eligible, subject to restrictions
• Treasury will publish a list of qualifying occupations within 90 days

— Auto Loan Interest Deduction of $10,000 per return for 2025–2028
• Phased out for MAGI exceeding $100,000 (single) / $200,000 (MFJ)
• Fully phased out at $150,000 (single) / $250,000 (MFJ)
• No itemizing required
• Applies only to vehicles purchased after December 31, 2024, whose original use begins with the taxpayer and final assembly occurs in the U.S.

— Overtime Premium Deduction of $12,500 per worker ($25,000 if MFJ) for 2025–2028
• Covers only the overtime “premium” (the half-time bonus over straight-time pay)
– e.g., if your base rate is $14/hr and OT rate is $21/hr, only the $7/hr premium qualifies
• Phased out for MAGI exceeding $150,000 (single) / $300,000 (MFJ)
• Fully phased out at approx. $275,000 (single) / $425,000 (MFJ)
• No itemizing required
• Still subject to Social Security, Medicare, and self-employment taxes

That’s all for now. We will soon publish a post for small- and medium-sized business (SMB) owners.

Please contact us if you have any questions about these or any other tax laws, or for any other tax or accounting needs.

Send a message to learn more

02/04/2025

Personal and Business Tax Services – Contact Us Today!

Are you in need of reliable and efficient tax services? Look no further! With 14+ years of experience, I am a local and remote CPA specializing in personal and business tax preparation. Our firm is dedicated to ensuring you pay no more than necessary, working tirelessly around the clock for your benefit.

Why Choose Us?
* 100% Positive Reviews: Check out our glowing reviews on Google and Facebook.
* Full-Time Availability: We operate 7 days a week to cater to all your tax needs.
* Experienced and Professional: With many years in the field, we provide top-notch tax preparation services.

Get in Touch:
* Phone: Give us a call at (248) 841-5664. If the lines are busy, please leave a message, and we will get back to you promptly.
* Facebook: Send us a message on Facebook for a swift response.

Let us take the stress out of tax season for you. Contact us today and experience the difference of working with a dedicated CPA!

01/10/2025

The IRS opens up for e-filing of 2024 individual tax returns on Monday, January 27, 2025!

Please contact us ASAP for all of your personal and business tax preparation and planning needs.

IR-2025-08, Jan. 10, 2025 — The Internal Revenue Service today announced that the nation’s 2025 tax season will start on Monday, Jan. 27, 2025, and will feature expanded and enhanced tools to help taxpayers as a result of the agency’s historic modernization efforts.

01/01/2025

Happy New Year!

- Now is a great time to wrap up your books. This will help with our next tips.

- 1099-NECs may be due to certain contractors by 1/31/25.

- 1099-MISCs may be due to landlords and those who rent/lease you certain vehicles, equipment, etc. by 3/31/25 (if filed electronically).

- Other 1099s may be required and due as soon as 1/31/25.

- BOI reporting appears to still be tied up in the courts. As of 1/1/25, reporting appears to be voluntary. We would recommend that you file your initial report(s) ASAP if you have not already done so.

- Q4 2024 estimated federal and MI tax payments are due 1/15/25.

- Income tax returns will be due soon. Now is a great time to do the above steps, gather your personal and business tax documents, fill out (and submit if ready) any tax organizers, and pay any retainers for 2024 tax prep.

Please contact us ASAP if you would like assistance with any items listed above.

Here’s to a smooth and hassle-free 2025 tax season!

12/29/2024

Were you or someone you know affected by the sudden closure of Bench Accounting?

Here are some helpful actions to take:

- Download your financial data when Bench Accounting makes it available on December 30th, 2024.
- Update the books through year-end 2024 and be sure to reconcile all 2024 months.
- Review your books for payments to contractors. Issue 1099-NEC’s before January 31, 2025.
-Be sure not to duplicate reporting of their income, such as reporting payments you made to them via credit card (these should only be on their 1099-K’s from CC processors).

If you'd like assistance with anything listed above, please contact us today. We offer:

- Monthly bookkeeping packages with discounted 1099 preparation
- Standalone 1099 preparation
- Tax preparation, planning, and estimates calculation
- BOI filing
- And many more services

12/21/2024

Great article as always by taxgirl. There is great info. here about the government spending bill very recently passed and the status of BOIR.

Among many other topics, I learned more about Form 4506 Request for Copy of Tax Return. Each return is $30 and is accompanied by its attachments. This is a great option in place of, or in addition to, (free) tax transcripts.

What was your favorite topic brought up in this article? Did you learn anything practical that you can apply in your business or personal life?

Our latest edition of Tax Breaks. Plus: IRS funding, beneficial ownership information (BOI) report update, 2025 standard mileage rates, tax filing deadlines, and more.

12/20/2024

IRS to send out automatic payments to 1 million taxpayers at the end of this month.

No action needed by taxpayers, and they should have them by January 2025. Maximum payment is $1,400 per individual.

Do you think you should be receiving this?

Contact us ASAP or in January 2025 if you believe you are eligible for these but have not received yet.

IR-2024-314: IRS announces special payments going this month to 1 million taxpayers who did not claim 2021 Recovery Rebate Credit; encourages non-filers about approaching deadline to claim credits Internal Revenue Service (IRS) sent this bulletin at 12/20/2024 03:05 PM EST IRS Newswire December 20,....

12/20/2024

New tax forms in 2025. Most notable are 1099-DA related to proceeds from digital asset sales/dispositions and 7217 related to distributions from partnerships, among others.

Is there a new 2025 form you are surprised or happy (as you can be) to see?

(Note: Click the post below then select “view post” to be taken to the original post. Once there, you can scroll through the pictures/slides to see all of the new forms.)

12/20/2024

The 2025 Mileage rate is $0.70/mile driven for business use (up 3 cents from 2024).

Do you feel like this is enough of an increase? Should it have been increased further?

There are more details on this and other changes in the article below.

The IRS has announced its 2025 standard mileage rates. Standard mileage rates are used to calculate the amount of a business, moving, medical, or charitable expense.