ABJ & Associates, Inc.

01/31/2026

2026-2028 TIPS & TAXES GUIDE FOR SELF-EMPLOYED HAIR STYLISTS and SIMILAR INDUSTRIES

Big Rule:
A tip only qualifies for the federal tip deduction if it goes through a system that gives you a tax form (like a 1099).

QUALIFIED TIPS (These CAN be deducted):
• Card tips entered separately in Square, Clover, Stripe, etc.
• Tips that appear separately in your reports
• Tips included on a 1099-K or similar tax form

NOT QUALIFIED (These CANNOT be deducted):
• Cash tips
• Check tips
• Venmo/Cash App/Zelle tips with no 1099
• “Run it for more” card payments with no tip line

Important:
• All tips are still taxable income
• Writing it down does NOT make it deductible
• Logs are for proof, not permission

What You Should Do:
• Turn on tipping in your card system
• Stop combining service + tip into one charge
• Encourage card tips instead of cash

Remember:
If the tip doesn’t show separately on a system that sends you a tax form, it’s not a qualified tip.

01/26/2026

𝗜𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝘁 𝗜𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻 𝗳𝗼𝗿 𝟮𝟬𝟮𝟱 𝗧𝗮𝘅 𝗥𝗲𝗳𝘂𝗻𝗱𝘀

If a 2025 tax return is filed expecting a refund without direct deposit information, the Taxpayer Advocate Service explains that taxpayers will receive an alert during e-filing. The return will still be accepted and processed, but the refund will be delayed. After filing, the IRS will send a letter asking the taxpayer to provide or update banking information within 30 days if direct deposit is missing or rejected. The letter also includes information on exceptions and provides a dedicated phone line for requesting an exception and issuance of a paper check. If no banking information is provided, 𝘁𝗵𝗲 𝗜𝗥𝗦 𝘄𝗶𝗹𝗹 𝘄𝗮𝗶𝘁 𝘂𝗽 𝘁𝗼 𝘀𝗶𝘅 𝘄𝗲𝗲𝗸𝘀 𝗯𝗲𝗳𝗼𝗿𝗲 𝗶𝘀𝘀𝘂𝗶𝗻𝗴 𝗮 𝗽𝗮𝗽𝗲𝗿 𝗰𝗵𝗲𝗰𝗸 to prevent interest from accruing on the refund.

To avoid delays, letters, and mailing risk, we strongly recommend providing direct deposit information when your 2025 return is prepared. This ensures a faster, safer refund and aligns with current IRS procedures.

12/30/2025

Important Mailing & Tax Deadline Notice

The U.S. Postal Service has recently changed how postmarks are applied to mailed items. As a result, the postmark date on your envelope may now reflect the date your mail is processed at a USPS facility, not the date you dropped it off.

This matters for tax returns and payments, because the IRS generally considers a return or payment timely filed based on the postmark date (see irs.gov for official IRS filing rules).

What this means for you:

Mail dropped close to a tax deadline could receive a later postmark

A later postmark may cause the IRS to treat the filing or payment as late, even if you mailed it on time

To protect yourself if mailing tax documents or payments:
✔️ Mail early
✔️ Request a hand-canceled (manual) postmark at the post office counter
✔️ Use Certified Mail or Registered Mail
✔️ Consider electronic filing and electronic payment whenever possible

Electronic filing and payment remain the safest and fastest options and reduce the risk of deadline issues.

If you have questions about filing or payment options, please contact our office.
Thank you!

12/26/2025

Sign up now for an Online Account and have access to your tax information and all the tools you’ll need throughout filing season, without phone calls or wait times. Visit: www.irs.gov/accounts

09/16/2025

I'm at the IRS Tax Forum this week and will be posting information as I come across it. This little beauty was in my welcome packet.
This season you'll need to ensure that we have your correct bank information for all tax returns.

03/06/2025

There are several of you that have asked me about high-yield savings accounts. I know that everyone has their own opinion of the best route to take, and there may be other ideas that are better than mine, but I use Ally bank for my savings. Currently they are paying 3.7% interest (much better than the 0.01% that many banks are paying). I have been impressed with the way Ally handles my account and the security they offer. If you are one of the people that were asking me about Ally (and even if you weren't and are interested now) I wanted to let you know that they are offering a $100 welcome bonus if you sign up using the referral link below.

We're offering a $100 welcome bonus when you enroll and open an eligible new Ally account. Get started today and complete all steps to earn your bonus.

02/20/2025

Not sure if you need to file a tax return? The IRS will help you determine that.

Find out if you have to file a federal income tax return and why it may pay you to file even if you don’t have to.

01/14/2025

In addition to everything explained in this video, we are now seeing notices coming for the information returns that the IRS accidently shredded in early 2021. No wonder I'm feeling overwhelmed!

📃 Sign up for my weekly newsletter https://www.newsletter.jason.cpa/🎥 My video setup https://jaas.co/hey-jason-what-camera-is-that💗 My accountant communit...

12/04/2024

Steep penalties for not filing this report by the end of this month!

The Beneficial Ownership Information (BOI) reporting requirement in the United States, established by the Corporate Transparency Act (CTA), mandates that certain entities—such as corporations, limited liability companies (LLCs), and similar structures—disclose the identities of their beneficial owners. A beneficial owner is defined as any individual who owns or controls at least 25% of the entity or exercises significant control over it. These reports must be filed with the Financial Crimes Enforcement Network (FinCEN). Entities formed or registered in the U.S. are required to comply with this new reporting requirement. Failure to file or providing false information can result in significant penalties, including fines up to $500 per day, with a maximum penalty of $10,000, and potential criminal charges for willful violations.

The deadline for filing Beneficial Ownership Information (BOI) reports under the Corporate Transparency Act (CTA) depends on the entity's formation or registration date:
1. New Entities: Entities formed or registered after January 1, 2024, must file their BOI reports with the Financial Crimes Enforcement Network (FinCEN) within 30 days of their formation or registration.
2. Existing Entities: Entities that were formed or registered before January 1, 2024, must file their initial BOI reports by January 1, 2025.
Subsequent updates to the BOI report must be made within 30 days of any changes in the beneficial ownership information.

This video walks through how to report beneficial ownership information (BOI) using the Financial Crimes Enforcement Network (FinCEN)’s E-Filing System. To c...

10/31/2024

NEW LAWS AFFECTING SICK TIME/MINIMUM WAGE EARNINGS STARTING IN FEBRUARY 2025

09/04/2024

Did you know? The wealthiest people in the world don’t get rich from working—they build and sustain their fortunes through investments. They benefit from holding onto their assets long-term (over 12 months), and they don’t pay taxes on the gains until they decide to sell. For instance, if Donald Trump holds a $3.6 billion investment in Trump Media & Technology Group, but originally paid $344 million, he’s sitting on a $3.25 billion gain that has never been taxed. And if he never sells, he never will.

Even more striking, if Trump passes away, his beneficiaries would inherit these assets at their current market value ($3.6 billion) thanks to the "step-up in basis" rule. This means they could sell immediately without paying any capital gains tax. Essentially, this tax provision is a loophole benefiting the ultra-wealthy.

If Trump did sell his shares, he’d pay a 20% capital gains tax, which is lower than what most families pay in income taxes. For example, families earning more than $123,500 are taxed at 22% or higher. This disparity highlights how the rich often pay less in taxes than the average American.

The Harris-backed proposal aims to address this by taxing unrealized capital gains—taxing the increased value of assets even if they aren't sold—at a minimum rate of 25%. This would only apply to Americans with a net worth of $100 million or more, affecting just a tiny fraction of taxpayers (around 9,850 people at the end of 2023).

04/12/2024

IR-2024-98: Dirty Dozen: Taking tax advice on social media can be bad news for taxpayers; inaccurate or misleading tax information circulating Internal Revenue Service (IRS) sent this bulletin at 04/08/2024 10:12 AM EDT IRS Newswire April 8, 2024 News Essentials What's Hot News Releases IRS - The Ba...