Important Updates

• All W2 and 1099 information must be submitted to Miles Tax with confirmation of receipt no later than January 15th (We will not file the forms if they are not submitted by this deadline)

• Please include social security numbers, addresses and gross amount paid

• Tax returns received 2 weeks or less before the deadline: Miles Tax cannot guarantee the completion of this tax return. Additionally, the cost to complete the return will include a charge for a late fee effective for tax year 2025.

• "No Tax on Tips"

  • • • New deduction: Effective for 2025 through 2028, employees and self-employed individuals may deduct qualified tips received in occupations that are listed by the IRS as customarily and regularly receiving tips on or before December 31, 2024, and that are reported on a Form W-2, Form 1099, or other specified statement furnished to the individual or reported directly by the individual on Form 4137. 

      • “Qualified tips” are voluntary cash or charged tips received from customers or through tip sharing.

      • Maximum annual deduction is $25,000; for self-employed, deduction may not exceed individual’s net income (without regard to this deduction) from the trade or business in which the tips were earned.

      • Deduction phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers).

• "No Tax on Overtime"

  • • • New deduction: Effective for 2025 through 2028, individuals who receive qualified overtime compensation may deduct the pay that exceeds their regular rate of pay – such as the “half” portion of “time-and-a-half” compensation -- that is required by the Fair Labor Standards Act (FLSA) and that is reported on a Form W-2, Form 1099, or other specified statement furnished to the individual. 

      • Maximum annual deduction is $12,500 ($25,000 for joint filers).

      • Deduction phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers).

• "No Tax on Car Loan Interest" 

  • • • New deduction: Effective for 2025 through 2028, individuals may deduct interest paid on a loan used to purchase a qualified vehicle, provided the vehicle is purchased for personal use and meets other eligibility criteria. (Lease payments do not qualify.) 

      • Maximum annual deduction is $10,000

      • Deduction phases out for taxpayers with modified adjusted gross income over $100,000 ($200,000 for joint filers)

      • originated after December 31, 2024

      • used to purchase a vehicle, the original use of which starts with the taxpayer (used vehicles do not qualify)

      • for a personal use vehicle (not for business or commercial use) 

• Deductions for Seniors

  • • • New deduction: Effective for 2025 through 2028, individuals who are age 65 and older may claim an additional deduction of $6,000. This new deduction is in addition to the current additional standard deduction for seniors under existing law. 

      • The $6,000 senior deduction is per eligible individual (i.e., $12,000 total for a married couple where both spouses qualify).

      • Deduction phases out for taxpayers with modified adjusted gross income over $75,000 ($150,000 for joint filers).

To read these new tax laws in more detail please follow the link: https://www.irs.gov/newsroom/one-big-beautiful-bill-act-tax-deductions-for-working-americans-and-seniors 

TBD