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The One Big Beautiful Bill Act (OBBA) that was signed into law on July 4, 2025, allows individuals to deduct qualified overtime pay for tax year 2025. Although the IRS does not require employers to report, they have strongly urged them to provide a best estimate to employees regarding this amount in Box 14 on the W-2, with a code like “OT” or OBBOTT”. Please note that eligibility to deduct the deductible amount depends on your individual tax situation, not what is reported in Box 14 of the...

Go through this checklist. Highlight the areas that apply to you, and make sure you have that information available. Better yet, attach the list to a folder of your tax documents, and check items off as you add them to the folder. Most people will need: Personal information This information tells the IRS exactly who’s filing, who is covered in your tax return, and where to deposit your tax refund. Social Security numbers and dates of birth for you, your spouse, your dependents...

Major tax changes for the 2025 tax year (returns filed in 2026) were signed into law on July 4, 2025. These changes include new income-specific deductions and a significant increase in the standard deduction and child- related credits. NEW 2025 TAX DEDUCTIONS For tax years 2025 through 2028, eligible taxpayers can take advantage of four new deductions by filing the new IRS Schedule 1-A (Form 1040). These include: No Tax on Tips: Deduct up to $25,000 of qualified tip income for workers in...