Mark Kneeream & Associates

Mark Kneeream & Associates Contact information, map and directions, contact form, opening hours, services, ratings, photos, videos and announcements from Mark Kneeream & Associates, Tax preparation service, 269 Pierce Street, Kingston, PA.

We are a full-service accounting firm in that we offer services in the areas of auditing, accounting, tax, consulting and preparation, and CFO services to the private sector, governmental, and not for profit entities.

12/12/2025

OBBBA Update #6: Deduction for Qualified Tips (“No Tax on Tips”)

As the year draws to a close, we would like to dedicate some posts to new and updated tax deductions that can be found in the “One Big Beautiful Bill Act” (OBBBA). The next deduction we would like to discuss is the new Deduction for Qualified Tips. The following are a few notes regarding this deduction:

• The deduction is for up to $25,000 of “Qualified Tips”

• Qualified Tips must be paid in cash or an equivalent medium such as check, credit card, etc.

• Qualified Tips must be paid voluntarily by the customer. For example, a restaurant may impose an automatic service charge for a large party that it will distribute to employees. This would not be considered a qualified tip.

• Mandatory or voluntary tip sharing arrangements are considered Qualified Tips

• Tips can only be considered Qualified Tips if received in an occupation which customarily and regularly receives tips. A list of occupations that qualify can be found in proposed IRS regulation REG-110032-25.

• Self-employed individuals in a Specified Service Trade or Business (SSTB) under section 199A (such as accountants) are not eligible.

• Qualified Tips must be reported on Form W-2, Form 1099, or Form 4137.

• This deduction is also known as “No Tax on Tips.” The deductible tips are still subject to F**A, state, and local taxes.

• You do not have to itemize to take this deduction.

• This deduction is not available for married taxpayers that file separately.

• Phaseout: This deduction begins to phase out for taxpayers with modified adjusted gross income in excess of $150,000 ($300,000 for joint filers), and is phased out at a rate of $100 for each $1,000 of income over the MAGI threshold.

• This deduction is available for tax years 2025 through 2028.

12/11/2025

OBBBA Update #5: Deduction for Qualified Overtime Compensation (“No Tax on Overtime”)

As the year draws to a close, we would like to dedicate some posts to new and updated tax deductions that can be found in the “One Big Beautiful Bill Act” (OBBBA). The next deduction we would like to discuss is the new Deduction for Qualified Overtime Compensation. The following are a few notes regarding this deduction:

• The deduction is up to $12,500 ($25,000 for joint filers) of “Qualified Overtime Compensation.”

• Qualified Overtime Compensation is defined as the premium portion of overtime as defined in the Fair Labor Standards Act. The deductible portion of overtime is the “half” of time and a half.

• Example 1: if your regular hourly rate is $20, and you work 10 hours of overtime at time and a half, you would receive $300 of overtime compensation. The Qualified Overtime Compensation that would be deductible is $100.

• Example 2: If your hourly rate is $20, and you work 10 hours of double time, you would receive $400 of overtime compensation. The Qualified Overtime Compensation that would be deductible is $100 because the deduction is based on the FLSA definition of overtime premium.

• This deduction is also known as “No Tax on Overtime.” The deductible overtime is still subject to F**A, state, and local taxes.

• You do not have to itemize to take this deduction.

• This deduction is not available for married taxpayers filing separately
• The amount of qualified overtime compensation is required to be included on Form W-2. There may be initial confusion among employers as to what constitutes “Qualified Overtime Compensation.” We recommend furnishing us with your last paystub of the tax year so that we can verify this number.

• Phaseout: This deduction begins to phase out for taxpayers with modified adjusted gross income in excess of $150,000 ($300,000 for joint filers), and is phased out at a rate of $100 for each $1,000 of income over the MAGI threshold.

• This deduction is available for tax years 2025 through 2028.

11/21/2025

OBBBA Update #4: Increased Deduction for Certain State and Local Taxes

As the year draws to a close, we would like to dedicate some posts to new and updated tax deductions that can be found in the “One Big Beautiful Bill Act” (OBBBA). The next deduction we would like to discuss is the State and Local Tax Deduction. The following are a few notes regarding changes to this deduction:

• For taxpayers that itemize, the limitation on the state and local tax deduction has been increased to $40,000 for 2025. It was previously $10,000.

• In 2026, the deduction limitation will be $40,400

• In 2027 through 2029, the deduction limitation will increase by 1% of the limitation in the prior tax year.

• Tax years after 2029 will revert to the $10,000 limitation

• The OBBBA also implemented a phasedown of this deduction. The phasedown is 30% of the taxpayer’s modified gross income that is in excess of a “threshold amount”. The threshold amount is $500,000 in 2025, and will increase by 1% of the previous taxable year in subsequent years. The phasedown will not reduce the deduction to below $10,000.

11/19/2025

OBBBA Update #3: Reinstated Charitable Deduction for Nonitemizers

As the year draws to a close, we would like to dedicate some posts to new and updated tax deductions that can be found in the “One Big Beautiful Bill Act” (OBBBA). The next deduction we would like to discuss is the Charitable Deduction for Nonitemizers. The following are a few notes about this deduction:

• Nonitemizers who take the standard deduction may now deduct contributions to charitable organizations.

• The deduction is limited to $1,000 ($2,000 for joint filers).
• You must maintain a record of the contribution, such as a bank record or a written communication from the qualified organization that lists the organization’s name, the amount, and the date of the contribution.

• For contributions of $250 or more, you must obtain and keep a contemporaneous written acknowledgement from the qualified organization that contains the name of the organization, the date and amount of the gift, and indicates whether the organization provided any goods or services in exchange for the gift.

• Contributions of property do not qualify for this deduction.

• Contributions to donor advised funds and non-operating private foundations do not qualify for this deduction.

• Contribution carried forward from prior tax years do not count toward this deduction. Additionally, non-itemizer contributions in excess of $1,000 ($2,000 for joint filers) do not carry forward to subsequent tax years.

• These contributions are not subject to the new 0.5% AGI floor (to be discussed in a future post).

• This deduction has been made available for tax years starting in 2026.

• This deduction does not expire, as it has been made permanent.

11/17/2025

OBBBA Update #2: New Deduction for Car Loan Interest

As the year draws to a close, we would like to dedicate some posts to new and updated tax deductions that can be found in the “One Big Beautiful Bill Act” (OBBBA). The next deduction we would like to discuss is the Deduction for Car Loan Interest. The following are a few notes about this deduction:

• The deduction is up to $10,000 per year in car loan interest.

• You do not have to itemize to take this deduction.

• The loan must have originated after December 31, 2024, and must be secured by a lien on the vehicle.

• The vehicle must be new. Used vehicles do not qualify.

• The vehicle must be for personal use only. It cannot be used in a business.

• The vehicle must have a GVWR of less than 14,000 lbs

• The vehicle must have undergone final assembly in the United States. Because the requirement is regarding location of final assembly, the manufacturer does not have to be a U.S. company. Be sure to verify the final assembly with the dealer. It is also a good idea to verify this independently. You can find this information by using the VIN decoder at the National Highway Traffic Safety Administration’s website.

• Lenders are required to furnish taxpayers with a formal tax statement that will report how much interest was paid during the year (Form 1098-VLI. However, the IRS is providing transition relief for 2025. This means that you may not receive this form. If you are planning to take this deduction, we will need the original purchase documents showing the VIN, date of purchase, and the loan agreement. Additionally, we will need a statement from the lender that shows total interest paid for the year.

• Phaseout: This deduction begins to phase out for taxpayers with modified adjusted gross income of $100,000 ($200,000 for joint filers), and is phased out at a rate of $200 for each $1,000 of income over the MAGI threshold.

• This deduction is available for tax years 2025 through 2028.

11/12/2025

OBBBA Update #1: New Deduction for Seniors

As the year draws to a close, we would like to dedicate some posts to new and updated tax deductions that can be found in the “One Big Beautiful Bill Act” (OBBBA). The first of these is the new “Deduction for Seniors” The following are a few notes about this deduction:

• The deduction is $6,000 for seniors who are age 65 and older, and $12,000 for a married couple where both spouses qualify. The taxpayers must attain age 65 on or before the last day of the taxable year.

• This deduction is not available to married taxpayers filing separately.

• You do not have to itemize to receive this deduction

• Phaseout: This deduction begins to phase out for taxpayers with modified adjusted gross income of $75,000 ($150,000 for joint filers), and is fully phased out at $175,000 ($250,000 for joint filers).

• This deduction is available for tax years 2025 through 2028

Address

269 Pierce Street
Kingston, PA
18704

Opening Hours

Monday 8am - 5pm
Tuesday 8am - 5pm
Wednesday 8am - 5pm
Thursday 8am - 5pm
Friday 8am - 5pm

Telephone

(570) 714-5222

Website

Alerts

Be the first to know and let us send you an email when Mark Kneeream & Associates posts news and promotions. Your email address will not be used for any other purpose, and you can unsubscribe at any time.

Contact The Business

Send a message to Mark Kneeream & Associates:

Shortcuts

Share

Category