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ACTaxadvisors.securefilePro.com
Remote Services and Tax Protection Plus Insurance
Member of the National Society of Tax Professionals NSTP
National Association of Tax Professionals NAPTAX
Prince William Chamber of Commerce Member
ONE BIG BEAUTIFUL BILL ACT OBBBA
The OBBBA, signed under Public Law No. 119-21 on July 4, 2025 introduced broad tax reforms such as:
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Lock in the TCJA lower Marginal tax rates
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The personal exemption termination was made permanent.
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Temporary deduction for Seniors.
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The law permanently preserves the TCJA's enhanced standard deduction
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Increased child tax credit
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Enhancement of dependent care tax credit
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No tax on Tips
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No tax on overtime
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Deductible car loan interest
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Extension on limitation of qualified resident interest.
OBBBA: SENIOR DEDUCTION
Effective 2025 through 2028 : Taxpayers age 65 and older may claim an additional $6,000 deduction and Married Filing Jointly $12,000.
This deduction is available whether you itemize or use the standard deduction.
OBBBA DEDUCTIBLE CAR LOAN INTEREST
Effective for 2025 through 2028, individuals may deduct up to $10,000 per year of interest paid on loans for a new U.S. assembled passenger vehicle for personal use.
Taxpayers do not have to itemize to claim the deduction. The deductions begins to phaseout when the taxpayers modified adjusted gross income exceeds:
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$100,000 for single taxpayer
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$200,000 for Married Filing Jointly taxpayers
OBBBA: NO TAX ON TIPS
Effective for 2025 through 2028 employees and self employees may deduct qualify tips received from occupations that are listed in the IRS.
This provision ( 224) allows taxpayers to deduct up to $25,000 per year in qualified cash tips from their taxable income.
The tips must be reported on W-2, 1099NEC, 1099K, wages statements including form 4137.
The taxpayer must provide a valid Social Security number on their Form 1040.
OBBBA: ENHANCEMENT OF INCREASE CHILD TAX CREDIT
Effective for tax year 2025 the maximum credit per qualify child increases from $2,000 to $2,200. Beginning 2026 this amount will be adjusted annually for inflation and social security number is required.
The $500 credit for certain other dependents is also permanently extended. However, the new law does not adjust the $500 amount annually.
HOW I CAN REPORT MY VIRTUAL CURRENCY TRANSACTIONS?
There are many such conversion platforms Some of the better-known ones are:
TokenTax,
BearTax
CryptoTrader.tax
ZenLedger
CoinTracker
Bitcoin.tax
DIGITAL ASSET PROCEEDS 1099-DA
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The general instructions requires mandatory reporting of gross proceeds information and voluntary reporting of basis information. For each digital asset sale that the broker has effected for a client in 2025, the broker must complete the Form 1099-DA.