Warhaftig & Associates, CPA

01/10/2026

Tax PSA for hourly workers with overtime:
If your employer did not break out your overtime amount on your W2, do not get upset. You can use your last paystub of the year to calculate the ‘deductible’ overtime amount for your tax return

01/02/2026

Hello Everyone,
I would like to first wish you and your family, a very happy and healthy new year.
Next, I would like to discuss the upcoming 2025 tax filings that are due by April 15, 2026.
While there are always new tax laws each and every year, this past year has seen an increase due to the laws that were introduced over the summertime.
While many of these new laws would not apply to everyone, there is a chance that some of them will apply to your specific situation.

The top ones that might apply are the following (please remember that these are not all of the changes):

A Potential deduction for Social Security
A potential deduction for overtime pay (if you had overtime during the year, please remember to bring your last paycheck so we can calculate the potential deduction in case your W2 does not have all of the information required)
A potential deduction for tips received
a higher state and local tax deduction
a deduction for interest on your personal vehicle (if purchased in 2025 or later)

While some of these could look very nice, there are always ‘exceptions’ to taking these deductions and we can review each of them when preparing your returns.

I will ask again to not wait until the end of the tax season to ask for assistance to prepare your returns. My last day to prepare returns before the deadline will be Sunday, April 12th. After that, I can prepare an extension on your behalf, then work with you after May 1st to file the returns. Please also remind you that if might owe taxes for 2025, you should pay those prior to the 15th as the returns are only allowed to be extended, but payments due are not extended and you can be subject to additional penalties.

Also, as many of you know, I have not raised my prices for quite some time, and I have tried to keep my prices as low as possible, but I will be raising them slightly this year. Everyone’s taxes are different, so I will cannot say how much your return will increase, but if you know me by now, I will likely not raise it significantly.

One final note, I am no longer working for Planet Fitness so I no longer work in Toms River…so I will not be able to accommodate anyone that wanted to drop off their documents there anymore.

As always, any questions or concerns, please feel free to contact me

thank you

--
Ira Warhaftig, CPA
Warhaftig & Associates, CPA
[email protected]
(732) 521-3694

12/24/2025

If you are thinking of making charitable donations in 2026, here are some good (and bad if you are in the higher tax brackets) from the new tax laws

1) Permanent 60% of AGI Limit for Cash Contributions First, the good. The OBBBA makes permanent the ability to deduct cash contributions to public charities of up to 60% of AGI. While this rule was previously scheduled to revert back to a 50% of AGI limitation, its permanence provides certainty for taxpayers who make large charitable gifts in high-income years.
2) New Deduction Floor for Itemizers (Effective in 2026) Now, the bad. Beginning in 2026, charitable contributions will only be deductible to the extent they exceed 0.5% of adjusted gross income (AGI). For example, a taxpayer with $500,000 of AGI would not receive a charitable deduction for the first $2,500 of contributions made in a given year. Only amounts above that threshold would be deductible. This is a meaningful departure from current law, under which qualifying charitable contributions are generally deductible without a minimum floor.
3) Reduced Tax Benefit for High-Income Taxpayers (Effective in 2026) For taxpayers in the highest income tax bracket, the value of charitable deductions will be modestly reduced even further. Under the new law, the effective tax benefit of charitable deductions for these individuals will be capped at 35%, rather than fully offsetting income taxed at the top marginal rate of 37%.

10/30/2025

With the government shutdown still going on, please watch out for these scams

Watch out for a scam email that may read, ‘Notification of IRS Audit & Investigation.’ The email may direct you to download a “secure” file (in some cases via sites like Cognito Forms) and submit documentation, but in fact the link leads to a fraudulent site that may steal your data or insta...

09/11/2025

For all of you asking about property tax relief programs

09/05/2025

Not here to get political, just an fyi, effective September 30, 2025, you will no longer receive any tax refund via a ‘live check’, nor can you pay your taxes via a ‘live check’.
Everything will need to go through either your bank or a debit card that the irs would issue.
This might cause some undue hardships if you like paying your taxes at the very last minute, but will also eliminate the possibility of the post office losing your check as well.

By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered:Section 1. Purpose.

07/29/2025

With the new tax laws that were just enacted, I thought it would be prudent to review a few of the laws that some people were asking me about based on the information that has been provided thus far.

• Qualified tip deduction: Up to $25,000 per tax return in qualified cash tips can be deducted from gross income (from ‘usual tipping industries’). This includes cash handed directly to workers, as well as tips received via credit card and digital payment platforms such as PayPal, Venmo and similar services.

• Qualified overtime compensation deduction: Workers may deduct the “premium” portion of their overtime compensation — defined as the amount paid above their standard hourly rate. For example, if an employee earns $20 per hour and their overtime rate is $30 per hour (time and a half), the “qualified overtime” would be the $10 premium per hour, not the full $30. The deduction is capped at $12,500 for single filers and $25,000 for joint filers.

For both of these, you still will have Social Security and Medicare be deducted from these earnings. You will also be paying any State Income tax on these as well.

In Summary, not all tips are tax free and only the 'excess' amount of your overtime will be federally income tax free.

As more information is provided, will try to keep everyone updated.

Send a message to learn more

04/18/2025

Just because tax ‘season’ is over, doesn’t mean you should stop thinking about taxes. If you owed money to the government this past year, odds are you will owe again. Planning is the best way to avoid a surprise next year.

11/20/2024

With the rise of identity theft in the world, it is very important that everyone should apply to the IRS for a personal identification number. This number will guarantee that no one can file a tax return without your knowledge. The pin would change every year.
It is easy to apply for one as long as you have an id.me account.
I suggest getting one for everyone in your family who files a tax return

Get an Identity Protection PIN (IP PIN) to protect your tax account.

07/30/2024

Do you have more than 25 employees in New Jersey with no retirement plan for them?
You need to get moving with:

RetireReady NJ expands New Jerseyans' access to retirement savings and helps businesses stay competitive by offering access to a great benefit for employees.

04/15/2024

For those who haven't filed their taxes, the line at the post office is not for tickets for the Metallica concert

03/22/2024

Just a friendly reminder that Turbo Tax is one of the worst computer games to ever play