Teffany L Maderic CPA

05/07/2026

https://www.westerncpe.com/blog-post/tax-prep-for-gig-economy-clients-after-the-obbba/?utm_source=ActiveCampaign&utm_medium=email&utm_content=%F0%9F%93%9DThe%20Memo%3A%20April%2024th%2C%202026&utm_campaign=%5BPacific%5D%20The%20Memo%3A%20April%2024th%2C%202026%20%28Copy%29&vgo_ee=bim37BGDvd94Yfy15amfdB3%2FD45yI46nRZ8%2FKjnR5QxDm%2FOyqBVpID7Nkk4JWw%3D%3D%3AMNNKqzZyTUNB7duMj%2BHF7c5v9Z37HZV3

The OBBBA reshaped everything for gig workers. Here's what CPAs need to know to prepare their gig economy clients for the new tax landscape.

04/02/2026

https://content.govdelivery.com/accounts/KYFAC/bulletins/40f942a

Final Reminder: 2026 National Changes May Affect Taxpayers Kentucky Finance & Administration Cabinet sent this bulletin at 04/02/2026 10:05 AM EDT Share / View as a webpage Two National Changes May Affect Your 2026 Tax Filings and Refunds Before filing, please review these two important national cha...

02/28/2026

https://content.govdelivery.com/accounts/USIRS/bulletins/40bb22f?reqfrom=share

Tax Tip 2026-16: IRS Individual Online Accounts: An easy tool for taxpayers Internal Revenue Service (IRS) sent this bulletin at 02/26/2026 10:53 AM EST IRS Tax Tips Feb. 26, 2026 Useful Links: IRS.gov Help For Hurricane Victims News Essentials What's Hot News Releases IRS - The Basics IRS Guidance....

01/27/2026

Most refunds are issued within 21 days

Direct deposit is the fastest way to receive a refund. Additionally, in accordance with Executive Order 14247, the IRS began phasing out paper tax refund checks on Sept. 30, 2025, meaning most taxpayers must provide their routing and account numbers to receive refunds directly deposited into their bank accounts.

Taxpayers can track refund status using Where’s My Refund?, the IRS2Go app, or their IRS Individual Online Account.

While the IRS issues most refunds in fewer than 21 days, some returns require additional review and may take longer.

EITC and ACTC refunds available by March 2

The IRS expects most refunds for the Earned Income Tax Credit and the Additional Child Tax Credit to be available in bank accounts or on debit cards by March 2, 2026, for taxpayers who chose direct deposit and have no other issues with their returns. Some taxpayers may receive their refund earlier, depending on their financial institution. Where’s My Refund? will provide projected deposit dates for most early EITC/ACTC refund filers by Feb. 21, 2026.

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01/21/2026

DEDUCTION FOR INTEREST ON NEW VEHICLE PURCHASE

The One Big Beautiful Bill Act (OBBBA) of 2025 allows a new, temporary deduction for up to $10,000 in annual interest paid on qualifying new vehicle loans from 2025-2028, applicable to both itemizers and non-itemizers, but with strict rules including U.S. final assembly, personal use, and income phase-outs starting at $100k MAGI (single) / $200k (joint).

Here are the key provisions:

Deduction Amount: Up to $10,000 of interest per year.

Timeframe: For loans taken out after December 31, 2024, for tax years 2025 through 2028.

Vehicle Requirements:
Must be a new vehicle (first owner).
Final assembly in the United States.
Gross Vehicle Weight Rating (GVWR) under 14,000 pounds.
Personal use only (not business).
Applies to cars, SUVs, trucks, vans, motorcycles.

Loan Requirements: Must be a standard auto loan from a qualified lender (not a lease), with the loan secured by the vehicle.

Income Limits (MAGI): Deduction phases out as income increases.
Starts phasing out at $100,000 for single filers.
Starts phasing out at $200,000 for joint filers.

Deduction Type: It's an "above-the-line" deduction, meaning you can claim it even if you take the standard deduction.

Refinancing: Interest on a refinanced portion of a qualifying loan is also eligible.

How it Works:
You calculate the total interest paid on your qualifying loan(s) in a year, up to the $10,000 cap, and then apply the income-based phase-out to find your final deductible amount. You'll need to report the Vehicle Identification Number (VIN).

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01/21/2026

DEDUCTION FOR QUALIFIED TIPS

The OBBBA (One, Big, Beautiful Bill Act) introduces a temporary deduction for qualified tips, allowing eligible workers to deduct up to $25,000 of tips from their taxable income for tax years 2025-2028, with phase-outs for higher earners (MAGI over $150k/$300k) and specific occupation/reporting rules; it also adds new reporting requirements for employers starting in 2026, though 2025 uses existing forms with penalty relief for employers.

Key Provisions for Qualified Tips:

Deduction Amount: Up to $25,000 annually for qualified tips.
Phase-Out: Starts with Modified Adjusted Gross Income (MAGI) over $150,000 (single) or $300,000 (joint filers).

Qualifying Tips: Voluntary cash or charged tips from customers, including shared tips, but not mandatory service charges or auto-gratuities.

Who Qualifies: Employees and self-employed individuals in IRS-defined occupations that "customarily and regularly" receive tips (listed by the IRS).

How to Claim (2025): Claim as an "above-the-line" deduction, potentially by adjusting Form W-4 withholding or using Form 4137 for unreported tips, relying on W-2/pay stubs for reporting.

Employer Requirements & Reporting:
New Reporting (Starting 2026): Employers must report cash tips and employee occupation separately on Form W-2.

2025 Guidance: For tax year 2025, existing W-2 forms and procedures are used, with IRS penalty relief for reporting failures as new systems are established for 2026.
In Summary:

The OBBBA creates a significant tax break for tipped workers by allowing a deduction for reported tips, but workers need to ensure they meet income thresholds and are in eligible occupations, while employers prepare for new reporting in 2026.

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01/21/2026

QUALIFIED OVERTIME COMPENSATION - DEDUCTION

The One Big Beautiful Bill Act (OBBBA) of 2025 introduced a temporary federal income tax deduction for "qualified overtime compensation", effective for tax years 2025-2028, allowing workers to deduct the premium portion (the "half" in time-and-a-half) of their FLSA-mandated overtime, capped at $12,500 (single) or $25,000 (joint), with phase-outs for higher incomes. This deduction reduces taxable income, not paychecks, and applies to the extra pay above the regular rate for hours worked over 40 in a week.

Key Provisions:
Deduction Amount: Up to $12,500 for single filers and $25,000 for those married filing jointly.

Qualifying Pay: Only the premium portion (e.g., the extra 50% in "time-and-a-half") of overtime pay, not the regular hourly rate.
Eligibility: Non-exempt employees must earn overtime under the Fair Labor Standards Act (FLSA).

Income Phase-Out: The deduction phases out for incomes over $150,000 (single) or $300,000 (joint), and is unavailable above $275,000 (single) or $550,000 (joint).

Reporting: Employers are encouraged to report this on Form W-2, but the IRS provided penalty relief for 2025, allowing employees to estimate or use pay stubs if the W-2 isn't detailed.

How it Works: It's a deduction from your Adjusted Gross Income (AGI), reducing your overall taxable income, not a direct tax credit.
Example:

If you earn $20/hour and work overtime at time-and-a-half ($30/hour), the $10/hour premium (the "half") is the qualified overtime pay eligible for the deduction, not the full $30.

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01/16/2026

The first acknowledgements from the IRS are here! The calendar is open for dates after January 28, but if you'd like earlier, just let me know? I look forward to seeing everyone!

01/14/2026

https://content.govdelivery.com/accounts/USIRS/bulletins/40463e7?reqfrom=share

Tax Tip 2026-03: Next steps to Get Ready for 2026 tax filing season Internal Revenue Service (IRS) sent this bulletin at 01/14/2026 12:32 PM EST IRS Tax Tips Jan. 14, 2026 Useful Links: IRS.gov Help For Hurricane Victims News Essentials What's Hot News Releases IRS - The Basics IRS Guidance Media Co...

01/10/2026

The announced Monday, January 26, 2026, as the opening of the nation’s 2026 filing season. You will have until Wednesday, April 15, 2026, to file your 2025 tax returns and pay any tax due. Don’t forget that IRS.gov has online tools and resources you can use before, during and after filing your federal tax return. For a list of filing season tools, reminders and resources, read: https://ow.ly/1yqq50XTweL