Tax Tips

No Tax on Tips? The New Deduction for Tipped Workers – Did You Know?

The One Big Beautiful Bill Act (signed July 4, 2025) created a temporary federal deduction for tip income, in effect for tax years 2025 through 2028.

How it works:

• Deduct up to $25,000 of qualified tips per year — no need to itemize
• Tips must be voluntary and reported; mandatory service charges do not count
• Payroll taxes (Social Security and Medicare) still apply — the break is on federal income tax
• The deduction phases out when modified AGI passes $150,000 ($300,000 on a joint return)

If tips are a big part of your income, keep good records during the year — it makes claiming this much easier at filing time.

Questions about your situation? V-TAX PLUS can help you get it right. Call us at (720) 645-8724 or message us to book a consultation.

For informational purposes only. This post is general information, not tax advice for your specific situation.

Bought a New Car? Your Loan Interest May Now Be Deductible – Did You Know?

For the first time in decades, interest on a personal car loan can be deductible — thanks to the One Big Beautiful Bill Act, for tax years 2025 through 2028.

• Deduct up to $10,000 of interest per year, even if you take the standard deduction
• The vehicle must be new, for personal use, and final-assembled in the United States
• The loan must have originated after December 31, 2024
• The deduction phases out above $100,000 modified AGI ($200,000 on a joint return)

Keep the interest statement your lender sends — you will need the number at filing time.

Questions about your situation? V-TAX PLUS can help you get it right. Call us at (720) 645-8724 or message us to book a consultation.

For informational purposes only. This post is general information, not tax advice for your specific situation.

No Tax on Overtime? What the New Deduction Really Covers – Did You Know?

Also from the One Big Beautiful Bill Act: a temporary deduction for overtime pay, for tax years 2025 through 2028.

The key points:

• You can deduct the premium portion of overtime — the extra 'half' in time-and-a-half — up to $12,500 ($25,000 on a joint return)
• Only overtime required under federal law (the FLSA) counts
• Available whether or not you itemize; phases out above $150,000 modified AGI ($300,000 joint)

Keep your pay stubs — they are the easiest way to show how much of your pay was the overtime premium.

Questions about your situation? V-TAX PLUS can help you get it right. Call us at (720) 645-8724 or message us to book a consultation.

For informational purposes only. This post is general information, not tax advice for your specific situation.

More OBBB Changes Worth Knowing Before Year-End – Did You Know?

The same law also made several quieter changes that affect many filers:

• SALT cap raised: the state and local tax deduction cap is $40,000 for 2025 (it was $10,000), phasing down for very high incomes, and scheduled to return to $10,000 in 2030
• Bigger standard deduction for 2025: $15,750 single, $31,500 married filing jointly, $23,625 head of household
• Child tax credit increased to up to $2,200 per qualifying child
• Clean energy credits are ending: the EV credit ended September 30, 2025, and the home energy credits end December 31, 2025

Year-end is the time to check how these pieces fit your situation — once January arrives, most 2025 moves are off the table.

Questions about your situation? V-TAX PLUS can help you get it right. Call us at (720) 645-8724 or message us to book a consultation.

For informational purposes only. This post is general information, not tax advice for your specific situation.

Age 65 or Older? You Get an Extra $6,000 Deduction – Did You Know?

For tax years 2025 through 2028, taxpayers age 65 and older get a new 'senior bonus' deduction under the One Big Beautiful Bill Act.

• $6,000 per eligible person — $12,000 for a couple when both spouses qualify
• It comes on top of the regular standard deduction and the existing extra amount for age 65+
• No itemizing required
• It phases out when modified AGI passes $75,000 ($150,000 on a joint return)

If you turned 65 this year, this is one more reason to plan before year-end — a little timing can protect the full deduction.

Questions about your situation? V-TAX PLUS can help you get it right. Call us at (720) 645-8724 or message us to book a consultation.

For informational purposes only. This post is general information, not tax advice for your specific situation.

Missed the October 15 Extension Deadline? – Did You Know?

If you had an extension and October 15 still slipped by, do not panic – but do not wait any longer, either.

Why filing as soon as you can matters:

• The failure-to-file penalty is usually 5% of unpaid tax per month, up to 25%
• Interest keeps accruing on any balance due until it is paid in full
• Filing now stops the biggest penalty from growing, even if you cannot pay everything right away

The IRS offers payment plans, and the sooner you file, the more options you have.

Questions about your situation? V-TAX PLUS can help you get caught up and plan ahead. Call us at (720) 645-8724 or message us to book a consultation.

For informational purposes only. This post is general information, not tax advice for your specific situation.