Joshua Blum, CPA

01/28/2026

Tax season is upon us!

If you are in need of filing assistance this year, please feel free to reach out to me and we can get your taxes taken care of.

The IRS's e-filing system has officially opened up, so now is a great time to get in and get your taxes handled efficiently and accurately.

So if you're looking to get things taken care of, send me a message today!

Send a message to learn more

01/04/2026

No tax on Social Security! Wait, no tax on Social Security?

One of the more important items in the One Big Beautiful Bill Act is the changes to the taxability of social security income. And just like "no tax on tips" and "no tax on overtime," the details of "no tax on social security" are important to be aware of.

First, and most important: There are NO changes to the basic rules of social security (The formula used to calculate the amount an individual will receive, retirement ages, cost of living adjustments, etc.).

Beginning with this tax filing year, however, there is an additional deduction on social security income of up to $6,000 for those filing single and up to $12,000 for those filing married filing jointly.

What's great about this one is there no extra step that a taxpayer has to take to claim the deduction, it's already built into the calculations.

As with other deductions, there are income limits: Phaseouts begin at a modified adjusted gross income of $75,000 for single filers and $150,000 for joint filers, and the deduction is removed entirely at $175,000 and $250,000, respectively.

So what is the net effect? Well, the IRS estimates that 88% of senior taxpayers will end up owing nothing on social security income with this change.

This is a substantial shift for many senior citizen filers and should provide a very solid benefit to those receiving SSI benefits.

So if you receive social security, or are preparing to, this change should have a positive impact on your tax returns going forward. And if you have questions on how to handle this deduction in the current tax season or especially for future planning, reach out with your questions!

12/30/2025

No Tax on Tips!

It's another key change in the One Big Beautiful Bill Act, but, much like no tax on overtime, figuring out your deduction is a little more complicated than it might sound.

Here's the key points:

1. Who qualifies? Well, the IRS has listed 8 different categories and 70 different jobs that qualify for this credit. I encourage you to review guidance on the IRS's website or work with a tax professional if you have questions on a specific job qualifying; however, in general terms, it's going to be jobs that you typically expect to see tips come from (restaurant work, nail salons, workers in the personal services arena, gambling and entertainment workers, etc.)

2. I own my own business - do I still qualify? Potentially. Unlike the no tax on overtime deduction, self employed individuals CAN deduct tipped income if they work in an eligible industry. However, there are a few important caveats on that: First, the self employed person can only claim their own tips as a deduction (So an employer does not get to claim tips paid to employees as a deduction). Additionally, if you work in a Specified Service Trade or Business, you are not eligible. Again, this is a spot where you may want to consult a tax professional to insure you have accurate information in your filing.

3. How do I claim this deduction? If you are a W2 employee, you will need your tips listed on your W2. There is a separate box listed on the W2 for tipped wages, so only tips listed there are eligible for the credit (If, like many tipped employees, you don't claim all of your tipped wages as income on your W2, you can only take the amounts listed there and previously taxed. Note that the IRS would also indicate that all tips received are considered taxable, despite common practice of cash tips often going unreported, and has a separate form where unreported tips can be listed on your tax return). Your wages will be entered as in previous years on your Form 1040, and then the deduction of tipped wages will be taken on Schedule 1-A.

4. So how much of a benefit is this? This, of course, will vary from person to person. The maximum amount of the deduction is $25,000 per return, and the credit phases out starting at $150,000 for single filers and $300,000 for married filing jointly filers. The top end of this deduction will save you about $5,500 in taxes.

Again, with a new deduction like this one, it is going to be a wise choice to work with a tax professional to get to the best outcome. If you are a person who typically does your own taxes, I encourage you to do your due diligence on these new deductions if you plan on taking them.

Either way, tax time is coming, so be sure you're prepared!

12/26/2025

No Tax on Overtime!

What's it really mean for you?

Well, as with everything government, the answer is...complicated. So let's see how much we can uncomplicate it:

- Are you a 1099 contractor or self-employed? This is not a credit you'll be able to take. It only applies to W2 wages.
-Does your overtime qualify? Well that's the real question isn't it? One thing that hasn't been discussed much in the general public is the idea of "qualified overtime compensation." So let's break it down a little:
a. Only overtime hours worked beyond a 40 hours/week standard are eligible for the deduction. So let's say you work a job where you work four 10 hour days each week and get OT for those extra 2 hours each day. That overtime? Not eligible for this credit.
b. Is your overtime required by a state law? If so, it's not eligible.
c. Is your overtime earned under a collective bargaining agreement? It's not eligible for this credit *unless it is beyond the 40 hour/week mark*.
d. Do you get paid a premium wage for working a particular shift, weekend, or similar? That is not eligible for this credit.
-So how much can you deduct? Let's assume you have at least some overtime pay that qualifies for this credit. You can deduct up to $12,500 of the overtime portion of your pay (i.e. the "1/2" in the "1 1/2 times pay" for overtime) if you're single or $25,000 if you're married filing jointly. Phaseouts of the credit begin at income levels of $150,000 (single) and $300,000 (married filing jointly).

Beyond all of this, there's a little added wrinkle this year: The IRS is not updating W2's in 2025, and employers are not mandated to report qualified overtime compensation this year.

So what can you do? There is one simple thing you can do to get a workable number for this credit: Use your final paystub of the year. If you are working with a tax professional, this is likely to be a required element of the tax documentation this year (I know it will be for me if a client qualifies for the credit!). Your employer MAY report OT wages on your W2 in Box 14, but assuming they won't and having your final paystub handy will be hugely beneficial to a proper calculation of this credit.

So whether you're doing it on your own or working with a professional, hopefully you now have a better picture of how this credit may end up affecting your taxes this year.

07/18/2025

The One Big Beautiful Bill Act has officially passed. There's been a lot of talk about "No tax on OT" and "No tax on tips." Everyone is in an uproar and everyone has an opinion.

But one area that hasn't been focused on that will impact many this year is gambling income. It's an area that's grown significantly in recent years, especially with sports betting.

Through 2024, you were able to deduct any gambling losses up to the amount you had won as part of your itemized deductions.

But that changes in the OBBBA, and I really haven't heard anyone talk about it. And that's bound to leave some people with surprise tax bills next year. Because gambling losses are now limited to 90% of the "amount of such losses in excess of gains from the taxable year."

What's that mean? Well, if you've got a dozen 1099-G's that show you won $100,000 in 2025, you're only going to be able to deduct $90,000 in losses on your Schedule A. That's means an extra $10,000 in income reported, which translates to anything from $1,000 to $3,700 in extra tax due at the end of the year. And, of course, the higher the wins, the higher the income that's going to be reported, and the higher the tax due.

And again: No one is talking about this.

So, gamblers, take note: Your tax bill is about to go up in 2025 and beyond.

And if you're looking for someone to help you navigate these new waters and figure out how to avoid a surprise tax bill come filing time, reach out!