Tax-Free Tax Coach

07/03/2025

OBBB new Tax provisions:
Starting 2025 thru 2028, then sun-setting:

1) No tax on tips. Tips reported from W-2, then get up to $25K additional (both single and joint) deduction.

2) No tax on overtime. Overtime reported on W-2 and included in income. Then get up to $12,500 Single or $25K joint additional deduction.

3)No tax on SS Benefits. Report SS and then get extra deduction up to $6K per SSA recipient.

All subject to phase outs so only benefiting those in lower/middle income brackets.

Call now to connect with business.

07/01/2025

https://www.dailysignal.com/2025/07/01/88-seniors-wont-pay-taxes-social-security-one-big-beautiful-bill-passes-analysis-finds/?utm_source=TDS_Email&utm_medium=email&utm_campaign=breaking-3-republicans-all-democrats-vote-against-one-big-beautiful-bill&_bhlid=3255f576a7d61e512f6ab713181b332dedd0498c

The Council on Economic Advisers says the One Big, Beautiful Bill includes the largest tax break in American history for seniors.

05/01/2024

https://www.cpapracticeadvisor.com/2024/04/19/georgians-claimed-over-109-million-in-tax-deductions-for-unborn-dependents/104241/?utm_source=CPA+Practice+Advisor&utm_campaign=6047104781-EMAIL_CAMPAIGN_2024_04_22_12_06&utm_medium=email&utm_term=0_-6047104781-%5BLIST_EMAIL_ID%5D

02/05/2024

For fiscal year 2024, the IRS plans to boost enforcement staff by a net 5,462 employees, according to a Jan. 29 report by IRS watchdog Treasury Inspector General for Tax Administration (TIGTA). This would take the total number of enforcement personnel at the tax agency to 18,960 by the end of fiscal 2024, which is 40 percent higher than the staffing at the beginning of October 2023.

The tax agency plans to increase staffing by adding 493 armed special agents this year.

05/18/2023

https://www.nfib.com/content/analysis/national/main-street-tax-certainty-act-to-be-introduced-in-the-u-s-senate/?utm_source=eNews-OH&utm_medium=email&utm_campaign=eNews05182023&utm_content=httpwwwnfibcommainstreettaxcertaintyacttobeintroducedintheussenate&mkt_tok=NDgzLVNZTS0wNDkAAAGLzza4OAYaWEn8M3nFBzoOA-bZFenRJJOc421NvL8-zbwIGRdUswjFOWhqBWdGNxPZZMiUcaWbMz2HfW89GEVLJ2VdCnj_irdadCDiVn2N_X4

04/24/2023

https://www.nfib.com/content/analysis/agriculture/how-expanded-irs-enforcement-will-hurt-main-street/?utm_source=eNews-OH&utm_medium=email&utm_campaign=eNews04202023&utm_content=httpwwwnfibcomhowexpandedirsenforcementwillhurtmainstreet&mkt_tok=NDgzLVNZTS0wNDkAAAGLPtkH_GVM2c08whEtMywIpCyDXXnD5wHkFvei1pfEX3BwshfgGWyBESkXa7pI-hzqjSM8KqJchhqRPgZLZT4LUHGgYM1DG0yOywHPhguyy9ao

Taxes remain a top concern for small business owners, but instead of focusing on taxpayer assistance and education, the IRS is going to expand enforcement.

04/24/2023

https://www.nfib.com/content/analysis/agriculture/how-expanded-irs-enforcement-will-hurt-main-street/?utm_source=eNews-OH&utm_medium=email&utm_campaign=eNews04202023&utm_content=httpwwwnfibcomhowexpandedirsenforcementwillhurtmainstreet&mkt_tok=NDgzLVNZTS0wNDkAAAGLPtkH_GVM2c08whEtMywIpCyDXXnD5wHkFvei1pfEX3BwshfgGWyBESkXa7pI-hzqjSM8KqJchhqRPgZLZT4LUHGgYM1DG0yOywHPhguyy9ao

04/05/2023

https://apnews.com/article/irs-tax-season-werfel-yellen-ab6ef1d350e0de5f1a64a5b3ba140661

The Internal Revenue Service’s new commissioner promises that with billions in new funding, the agency will be faster, more service-focused and tech- savvy and will provide “real-world improvements” to taxpayers. “This is our moment in history to transform the IRS,” said Daniel Werfel, who...

03/09/2023

https://cpatrendlines.com/2023/03/08/hello-irs-anybody-home-2/?utm_source=Newsletter&utm_medium=email&utm_content=Hello%3F+IRS%3F+Anybody+Home%3F&utm_campaign=T_+Thursday_b+2023-03-09+%2F+++RSS%3AITEM%3ATITLE++%2F+MR_RETREAT%2C+BL_SEO%2C+IOA_WOMEN%2C+EM_TSC+%2F++Beth+sNew+BBvF+%28Copy%29

11/17/2022

Groundhog Day and the IRS – Backlog Persists

Does the craziness of the last two filing seasons coupled with the distinct possibility that the chaos at the IRS will continue in 2023 ever make you feel like you’re in Groundhog Day? You know, the movie where Bill Murray is stuck in the time loop, doomed to repeat each day over and over? Pretty reasonable feeling, if so, and you’re not alone.

"It’s gonna be cold, it’s gonna be grey, and it’s gonna last you for the rest of your life.” - Phil Connors

Ok, so hopefully the future isn't quite as dreary as Connors forecasted that winter in Groundhog Day. But the National Taxpayer Advocate Erin M. Collins likened the troubling situation for taxpayers to that classic movie in a recent NTA Blog update on the IRS’s progress (and lack thereof) in remedying the backlog.

Groundhog, Backlog

The IRS as of October 21 had nearly three million individual returns and more than four million business returns still awaiting initial processing, not to mention roughly two million amended individual and business returns.

Additionally, the IRS has over 250,000 unprocessed Forms 941-X in its inventory, many of which cannot be processed until the related Form 941 is processed first. And as of November 2, the IRS still had nearly 2.5 million Forms 941 in its inventory patiently awaiting process.

“We will soon find out whether the upcoming filing season adds a similar chapter to this [Groundhog Day] series or whether the IRS can work through its backlog, process tax returns and correspondence quickly, and answer its phone calls at a level that substantially improves the taxpayer experience during the next filing season,” Collins said.

Jessica L. Jeane, J.D.
Senior Director, Tax
November 15, 2022

08/18/2022

From Markers to Face Masks, Classroom Supplies May Be Tax Deductible

Teachers go above and beyond for their students, often buying classroom supplies needed to make learning successful. The educator expense deduction allows eligible teachers and administrators to deduct part of the cost of technology, supplies and training from their taxes. They can only claim this deduction for expenses that weren't reimbursed by their employer, a grant or other source.

Who is an eligible educator:
The taxpayer must be a kindergarten through grade 12 teacher, instructor, counselor, principal or aide. They must also work at least 900 hours a school year in a school that provides elementary or secondary education as determined under state law.

Things to know about this deduction:
Starting on tax returns for 2022, educators can deduct up to $300 of trade or business expenses that weren't reimbursed. If two married educators are filing a joint return, the limit rises to $600. These taxpayers cannot deduct more than $300 each.
For 2021 returns, the limit is $250, or $500 for married educators filing jointly. As teachers prepare for the school year, they should remember to keep receipts after making any purchase to support claiming this deduction.
Qualified expenses are amounts the taxpayer paid themselves during the tax year.

Here are some of the expenses an educator can deduct:
• Professional development course fees
• Books and supplies
• COVID-19 protective items to stop the spread of the disease in the classroom.
• Computer equipment, including related software and services
• Other equipment and materials used in the classroom