OBBBA adds a temporary, targeted deduction for tips. It’s not a universal “no tax on tips.” Many tipped amounts are still taxable, and payroll taxes still apply. Here’s the clean, CFO-level breakdown you can put in front of clients.
Repeal Dates of Various Energy Credits and Incentives | |
Credit | Repeal Date |
IRC §25E Previously Owned Clean Vehicle Credit | Repealed for vehicles acquired after September 30,2025 (OBBA §70501; IRC §25D(g)) |
The One Big, Beautiful Bill Act (OBBBA) was signed into law on July 4, 2025, and with it comes many new tax provisions that may directly affect you. There are many tax provisions contained in OBBBA beyond the ones we have highlighted here.
Extension of expiring tax provisions
The center point of OBBBA is a permanent extension of most of the provisions of the Tax Cuts and Jobs Act of 2017 that apply to individual taxpayers and were scheduled to expire at the end of 2025. These provisions include, among many others:
State and local tax deductions
The itemized deduction for state and local taxes (SALT) is temporarily increased from $10,000 to $40,000 for five years. The increased deduction is reduced for higher earners. Taxpayers who are owners of passthrough business entities and make a passthrough entity elective tax election can still use the election to maximize their SALT deductions.
As required by law, in every Form 1040 instruction booklet there's a section that shows where our federal government gets its money and where it is spent. As taxpayers it makes sense to know this information. Here is the data for the government's fiscal year ending September 30, 2023, as reported by the IRS in the 2024 instruction booklet for Form 1040:
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BOI e-Filing Alert: A federal court order issued on February 19, 2025, has reaffirmed that businesses must file a Beneficial Ownership Information (BOI) report.
The Corporate Transparency Act (CTA) and its BOI reporting requirement have been deemed unconstitutional in court rulings, but the legal battles continue. This law has been in and out of court multiple times, with decisions reversing course along the way. It is our opinion that these requirements will change again, but at this time, businesses must comply with the filing requirement to avoid penalties. File your BOI HERE
As you may be aware, the Corporate Transparency Act (CTA) requires many businesses to file a Beneficial Ownership Information (BOI) report with FinCEN. However, not all businesses are required to file.
This article will help clarify who must file and who is exempt so you can determine whether you need to take action.
Any domestic or foreign business entity that was formed by filing with a Secretary of State (or equivalent office) is required to file, including:
The IRS has issued 282 pages of proposed digital asset reporting regulations, along with official IRS explanation of the provisions, which cover a range of digital asset issues where there have been questions. Issues addressed include expansive definitions of brokers and a requirement that proceeds from the sale of digital assets be reported to the IRS starting in 2026, on new Form 1099-DA for transactions on, or after January 1, 2025.
Noteworthy aspects of the proposed regula ons include:
We will keep you updated as these new rules develop!
If you have any questions, please do not hesitate to call our offices at 855-922-WeDo (9336)
Quick Answer: Yes, the ERTC refund is taxable.Many of our clients that have applied for The Employee Retention Tax Credit (ERTC) ask about the taxability of the refunds received.
The IRS has taken the position that the income is taxable in the tax year/tax period to which the credit applies.
The ERTC refunds relate back to 2020 or 2021. These amounts will be received in later years and are to be included as income on the respective prior year return. This process will require amended returns for the entity and any shareholders/partners. This will result in tax due for in the amended tax year. Since this tax will now be deemed late, the IRS will impose Interest and Penalties.
Good News - sort of... There is a process to apply for a penalty waiver with the IRS, but unfortunately it is a manual one.
Based on the IRS information, we do not recommend including the ERTC income in a current year. If you include this in the year in which the income is received, you risk the IRS auditing you and charging penalties. The penalties would not be eligible for relief at that time.
After filing your taxes, you may start wondering... Where is my refund?
The answer depends on how you filed your return:
You can check on the status of your refund by clicking on the links below.
Check your Federal Refund... click here
Check your State Refund...
CA - Click Here
AZ - Click Here