C & R Accounting Assets

OBBB: 65 and older can claim an additional deduction of $6,000 for tax years 2025 to 2028. This phases out with income over $75,000 ($150,000 for joint filers). This could be a tax savings of $900 to $1,500.

2025 TAX UPDATE: OVERTIME PAY
A provision within the recently enacted One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, has introduced a tax deduction related to overtime pay. This aims to offer tax relief to eligible workers, though it's important to understand the specifics:
Key Points about the Overtime Tax Deduction:
* It's a Deduction, Not an Exemption: Overtime pay is not made fully tax-exempt under this law.
* Deductible Portion: Eligible workers can deduct the federal income taxes paid on the deductible portion of their overtime pay when filing their tax returns, even if they don't itemize deductions.
* Limited Amount: The deduction is capped at $12,500 ($25,000 for married couples filing jointly) in any given year.
* Overtime Premium Only: The deduction applies to the premium portion of overtime pay – the amount exceeding an employee's regular hourly rate – that is mandated by the Fair Labor Standards Act (FLSA).
* Eligibility and Income Limits: The deduction primarily benefits middle-income workers, as it doesn't offer much advantage to low-income earners who may already have little to no federal tax liability after taking the standard deduction. The deduction also phases out for higher earners.
* Payroll Taxes Still Apply: Overtime wages remain subject to Social Security and Medicare taxes, as well as any applicable state and local income taxes.
* Temporary Provision: The overtime tax deduction is effective for tax years 2025 through 2028.

www.whitehouse.gov

What's missing for your taxes? If you have an HSA (Health Savings Account) at work, and used it to pay for medical bills, then you need a 1099-SA to file your taxes. Make sure you have your login to your HSA to get your form, or check with HR or payroll.

About Form 1099-SA, Distributions From an HSA, Archer MSA, or Medicare Advantage MSA | Internal Revenue Service Information about Form 1099-SA, Distributions From an HSA, Archer MSA, or Medicare Advantage MSA, including recent updates, related forms and instructions on how to file. File Form 1099-SA to report distributions made from an HSA, an Archer MSA, or an MA MSA.