NEW LAWS PERTAINING TO: Overtime, Tips, Car Loan Interest, Senior Deduction, and Trump Accounts:
RULES Pertaining to Car Loan Interest:
If you purchased a new vehicle for personal use in 2025, whose final assembly occurred within the Unites States, and have a loan, you may be eligible for a deduction on the interest you paid. You must provide the vehicles year, make, model, and VIN AND the last billing statement of the year.
RULES Pertaining to Overtime Deduction: MUST INCLUDE LAST PAYSTUB OF THE YEAR WITH YOUR PAPERWORK.
-If you are a single filer, you may claim a deduction of up to $12,500. If you are a married joint filer, you may claim a deduction of up to $25,000.
-Qualified overtime compensation deduction is for the amount that exceeds your regular rate for hours worked more than 40 hours a week (not overtime per day, it is per week). Example: If you earn $20/ hr, then your overtime pay would be $30/ hr. The tax deduction is only good for the $10/ hr as this is the rate that exceeds your regular rate.
Example: You worked 50 hours this week at a regular hourly rate of $20/hr, how much is your overtime deduction?
40 regular hours worked @ $20/ hr = $800
10 overtime hours worked @ $30/ hr = $300
OT Tax Deduction = Regular Hourly Rate ($20) minus Time And a Half Rate ($30)
Your Eligible Overtime Deduction = $100
RULES Pertaining to Tips:
The Tips Deduction is for individuals who work in an industry that earn "Qualified Tips" of up to $25,000. The deduction will phase out for individual filers who earn more than $150,000 per year, or if married filing joint, earn $300,000 per year. To receive this deduction, the tip amount must be listed on a 1099 or W2 tax form and earned from an occupation that customarily and regularly received tips on or before the start date of 12/31/2024. "Qualified Tips" is defined by the Secretary of Treasury and a detailed list can be found on www.federalregister.gov/documents/2025/09/22/2025-18278/occupations-that-customariliy-and-regularly-received-tips-definisition-of-qualified-tips
RULES Pertaining to the Senior Deduction:
The Senior Deduction is $6,000 per individual 65 or older by the end of the tax year. This deduction begins to phase out for single filers who earn more than $75,000, or for married joint filers earning more than $150,000.
TRUMP ACCOUNTS: www.trumpaccounts.gov beginning July 5, 2026
Trump Accounts are a type of Traditional IRA (individual retirement account) for individuals who have not reached the age of 18 before the end of the 2026 calendar year. Contributions to these account will not be accepted until July 5, 2026. Distributions from these accounts are similar to a Traditional IRA and early withdrawal penalties may apply if the funds are not used for specific needs (i.e. education or first time home purchase); no distributions are allowed before the account beneficiary turns 18.
The "PILOT PROGRAM" is for children born in the years 2025 through 2028 and may receive a $1,000 contribution from the Department of Treasury into their Trump Account by electing to participate using form 4547. Parents, friends and family members may also contribute to these accounts; the annual contribution limit is $5,000 and there is no tax deduction for contributing.
To participate in this program, you will need to fill out form 4547. This form is electing to open account, the form does not open the actual account, you will need to refer to the Trump Accounts website for the account information. This form is online and can be mailed or you can file this form electronically at www.trumpaccounts.gov . If you elect to mail to form before the website opens in July 2026, mail the signed form to:
Department of Treasury
Internal Revenue Service
Ogden, UT 84201-0002
OTHER INFORMATION:
Our in person appointments are fully booked. If you would like to be added to our cancellation list, please call our office. Our tax season office hours will begin on January 20th and the IRS will begin accepting certain returns on January 29th.
If you schedule an appointment for a date after the April 15, 2026 deadline, you will need to file an extension. Visit the tab on our website titled "Forms & Links" for information on how to do so. Thank you!
Between the months of May through December, our office hours vary, however we do update our website frequently with any changes. To drop off your paperwork, please include the Client Information Form (located under the forms & links tab or in our office). You can drop off any time, no appointment needed. You can also use our Client Portal system to upload your documents (again, you must include the Client Information Form). If you drop off during a time we are closed, you may do so by using the mail slot located on our front door facing Grand.
