October 28, 2025

Dear Tideline Client:

We are writing to report to you about the significant new tax legislation (the Act), formerly known as the One Big Beautiful Bill or OBBB, which was signed into law on July 4, 2025.  The Act includes numerous changes that affect individual taxation. Navigating these changes can be complex, and their impact on your specific tax situation will vary.

We encourage you to review this list, which highlights some of the key provisions, and contact us at your earliest convenience to discuss the impact of these changes and develop a plan tailored to your situation.

• Reduced Income Tax Rates: The Act makes permanent the lower individual income tax rates and wider tax brackets introduced by the Tax Cuts and Jobs Act (TCJA), preventing a scheduled tax-rate increase after 2025. For example, the top individual rate will remain at 37% (instead of reverting to 39.6%), and the marriage penalty relief for most brackets continues. This means that married couples filing jointly will typically not face higher taxes compared to what they would have paid as singles.
• Increased Standard Deduction: The standard deduction has been increased for 2025 and beyond. For 2025, the amounts are $31,500 for joint filers and surviving spouses, $23,625 for heads of household, and $15,750 for singles and marrieds filing separately. These amounts will be adjusted for inflation after 2025. Because these higher amounts mean fewer taxpayers will benefit from itemizing, consider bunching itemized deductions into a single year to exceed the standard deduction, then take the standard deduction in alternate years.
• Child Tax Credit: The child tax credit (CTC) has been made permanent and increased to $2,200 per qualifying child for 2025. This amount will be adjusted for inflation after 2025. However, no credit is allowed unless the taxpayer includes a social security number (SSN) for both the qualifying child and the taxpayer (or for at least one spouse in the case of a joint return).
• Child and Dependent Care Credit: The child and dependent care credit will become more valuable for many families starting in 2026. The maximum credit rate will increase to 50% of eligible expenses, up to $3,000 for one qualifying individual or $6,000 for two or more. The full 50% rate will apply to families with adjusted gross income (AGI) up to $15,000 and gradually phase down to 35% for AGI up to $75,000 ($150,000 for joint filers). The credit rate is further phased down to 20% for AGI up to $105,000 ($210,000 for joint filers). To maximize your benefit, keep thorough records of all qualifying expenses and coordinate with any employer-provided dependent care benefits to avoid missing out on the full credit potential.
• Adoption Credit: Starting in 2025, the adoption credit is enhanced to include a refundable portion of up to $5,000 per child (indexed for inflation). This means eligible taxpayers can receive up to $5,000 as a refund even if they owe no tax, making the credit more valuable for lower-income families. To maximize this benefit, keep detailed records of all qualified adoption expenses, ensure you have a taxpayer identification number for the child, and file Form 8839 in the year the adoption is finalized.
• Credit for Contributions to Scholarship-Granting Organizations: For tax years ending after Dec. 31, 2026, individual taxpayers can claim a new income tax credit of up to $1,700 per year for cash contributions to qualifying scholarship-granting organizations (SGOs) in participating states. To maximize this benefit, confirm your state’s participation and ensure the SGO is on the IRS-approved list before contributing.
• American Opportunity and Lifetime Learning Credits: Starting in 2026, you must include your SSN on the return when claiming these education credits. If you are claiming the credit for a student other than you or your spouse, you must also include the student’s name and SSN. An SSN for these purposes means one that is valid for employment and was issued before the due date of the return. When claiming the American Opportunity Credit, you must include the employer identification number (EIN) only for institutions to which you paid qualified tuition and related expenses for which the credit is claimed. To avoid losing these valuable credits, make sure all SSNs are issued before the tax return deadline and that you have the EIN for each institution. Double-check that these numbers are entered correctly on your return, as missing or incorrect information will result in IRS denying the credit.
• Deduction for Taxpayers Age 65 or Older: For tax years 2025-2028, individuals age 65 or older can claim a new $6,000 senior deduction. The deduction is available to both itemizers and non-itemizers. Married taxpayers must file a joint return to claim this deduction. Both spouses on a joint return can claim the deduction if they qualify. The deduction is reduced by 6% of any excess of the taxpayer’s modified adjusted gross income (MAGI) above $75,000 (single) or $150,000 (joint). To maximize this benefit, seniors should aim to keep their MAGI below those amounts. Be sure to include the correct SSN for each qualifying individual to avoid disallowance of the deduction.
• Individual SALT Limitation: The state and local tax (SALT) deduction cap is temporarily increased to $40,000 for 2025 ($40,400 in 2026, with 1% annual increases through 2029), before reverting to $10,000 in 2030. For those with MAGI above $500,000 in 2025, the deduction phases out by 30% of the excess over the threshold, but will not drop below $10,000. Managing income and deductions to stay below the phaseout threshold, or timing large transactions to occur in years with a higher cap, can help maximize your tax benefit during this limited window.
• Car Loan Interest Deduction: For tax years 2025-2028, individuals can deduct up to $10,000 per year in interest paid on loans for new personal-use vehicles even if they don’t itemize deductions. The deduction phases out for single filers with MAGI over $100,000 and joint filers over $200,000. To qualify, the loan must be for a new, U.S.-assembled car, SUV, van, pickup, or motorcycle (under 14,000 pounds), secured by a first lien, with the taxpayer as the original owner, and the vehicle’s VIN reported on the tax return. If you’re planning to buy a new vehicle, consider timing your purchase and loan to maximize deductible interest within the eligible years, and manage your income to stay below the phase-out thresholds for the largest benefit.
• Deduction for Qualified Residence Interest: The deduction for mortgage interest on home acquisition debt is now permanently capped at $750,000 ($375,000 if married filing separately), rather than increasing to $1 million in 2026 as previously scheduled. If you are considering buying a home, refinancing, or taking out a new mortgage, be aware that interest on debt above $750,000 will not be deductible.
• Individuals’ Charitable Deductions: Beginning in 2026, the Act makes permanent the 60% ceiling for cash gifts to 50% charities, and provides that a contribution of cash to a 50% charity is deductible to the extent that the total amount of contributions of cash to 50% charities doesn’t exceed the excess of: (a) 60% of the taxpayer’s contribution base for the tax year, over (b) the total amount of contributions to 50% charities for the tax year. To maximize your deduction, prioritize cash donations to 50% charities.
• Casualty Loss Deduction: The rule that limits the casualty loss deduction to losses from disasters has been made permanent. However, starting in 2026, losses from certain state-declared disasters, as well as from federally-declared disasters, will be deductible. A separate Act provision extends the rule that allows the an individual’s standard deduction to be increased by the individual’s net disaster loss. This rule now applies to disasters occurring up to July 4, 2025, the date of enactment of the Act. These losses will be deductible for taxpayers who do not itemize. If you experience a loss due to a qualifying disaster, be sure to document your losses and insurance claims, and consider filing an amended return if you missed claiming a qualified loss in a prior year.
• Wagering Losses: Starting in 2026, only 90% of your wagering losses can be deducted against your winnings, even if your losses equal or exceed your winnings. To maximize your deductions, consider realizing wagering losses in 2025 before the new rule takes effect, and keep detailed records of all activity.
• Deduction and Exclusion for Moving Expenses: Moving expenses are now permanently nondeductible for most taxpayers, and any employer reimbursement for moving costs is fully taxable as income. If you expect to relocate for work, consider negotiating with your employer to cover the additional taxes you’ll owe. Only active-duty military members moving under orders and, starting in 2026, certain intelligence community employees remain eligible to deduct or exclude qualified moving expenses. These individuals should track and document all eligible costs for tax purposes.
• Miscellaneous Itemized Deductions; Educator Expenses: The Act permanently eliminates miscellaneous itemized deductions for individual taxpayers. Thus, formerly deductible items such as unreimbursed employee business expenses, investment expenses, and tax determination expenses are permanently disallowed. However, starting in 2026, the Act adds a new educator expense deduction that will allow K-12 teachers, counselors, coaches, and aides who work at least 900 hours per year to deduct unreimbursed classroom expenses, such as books, supplies, and equipment. This new deduction won’t be classified as a miscellaneous itemized deduction.
• Pease Limitation: The Pease limitation, which reduced overall itemized deductions for high earners, is permanently repealed. Instead, starting in 2026, high-income taxpayers will see a much smaller 2/37 reduction apply to the lesser of their itemized deductions or the amount by which their taxable income exceeds the 37% tax bracket threshold. With this change, bunching deductible expenses into a single year can be effective, since the reduction is generally less severe than under the old Pease rules.
• New Tax-Deferred Investment Accounts for Children: Taxpayers can open a new tax-deferred investment account for children, called a “Trump account,” for each eligible child. Taxpayers can contribute up to $5,000 per year in after-tax dollars for each child. Funds must be invested in a diversified U.S. equity index fund. For children born between Jan. 1, 2025, and Dec. 31, 2028, the federal government will automatically contribute $1,000 to each account. Taxpayers should open the account before their child turns 18 to maximize contributions and secure the government benefit if eligible.
• K-12 Expenses for 529 Accounts: Changes to 529 savings plans allow families to use tax-free distributions for a much broader range of K-12 education expenses, including not just tuition, but also curriculum, books, online materials, tutoring, standardized test fees, dual enrollment, and educational therapies for students with disabilities. Starting in 2026, the annual limit for K-12 distributions doubles from $10,000 to $20,000 per beneficiary. To maximize tax savings, consider timing 529 withdrawals to match qualified expenses within the same tax year, and coordinate with other education tax credits to avoid overlap.
• Postsecondary Expenses for 529 Accounts: 529 plan distributions can now be used tax-free for a wider range of education expenses, including not only college costs but also “qualified postsecondary credentialing expenses.” This means you can use 529 funds for tuition, fees, books, supplies, and equipment required for enrollment in recognized certificate, licensing, or apprenticeship programs even if they are not traditional degree programs.
• ABLE Accounts: The Act permanently provides for additional contributions to Achieving a Better Life Experience (ABLE) accounts for employed individuals with disabilities. It also adjusts the base limit amount by one year for inflation. The Act also permanently allows beneficiaries who make qualified contributions to their ABLE account to qualify for the Saver’s Credit. To maximize tax benefits, ensure the designated beneficiary personally makes contributions by year-end to qualify for the Saver’s Credit, which is now permanently available for ABLE contributions and will increase to a maximum of $2,100 starting in 2027.
• Alternative Minimum Tax Exemption Amounts: The alternative minimum tax (AMT) exemption amounts are permanently increased for 2026 and beyond, but the phaseout rate for higher-income taxpayers doubles from 25% to 50%. Taxpayers should review their AMT exposure and consider strategies such as timing income or exercising options in lower-income years to avoid unexpected AMT liability.
• Estate & Gift Tax Exclusion Amount: The basic exclusion amount for federal estate and gift tax will increase to $15 million (indexed for inflation) for estates of decedents dying and gifts made after Dec. 31, 2025. Review and update estate plans and consider making large lifetime gifts to take advantage of this higher exclusion.
• Remittance Transfers: Starting in 2026, a new 1% excise tax will apply to remittance transfers from U.S. senders to recipients in foreign countries. Transfers funded with cash or through non-U.S. payment apps may be subject to the tax, so plan ahead and whenever possible use the exempt methods (i.e., the remittance transfer is withdrawn from a financial institution governed by Title 31, Chapter 53 or funded with a U.S.-issued debit or credit card) to minimize your tax liability on international money transfers. This provision is effective for transfers made after Dec. 31, 2025, so review your remittance practices before year-end to take advantage of these exceptions and avoid unnecessary taxes.
• Eligibility to Enroll in Qualified Health Plan: Starting in tax years after 2027, you will only be able to claim the premium tax credit (PTC) for months when the health insurance Exchange has verified that you are eligible to enroll in a qualified health plan (QHP) and to receive advance PTC payments. To avoid losing your credit, be sure to file your federal tax return on time each year. Promptly report any changes in income, family size, or other circumstances to the Marketplace within 30 days, and respond quickly to any requests for information.

These are just some steps that can be taken to save taxes. Please contact us via email or 843-972-3767 so that we can tailor a plan that will work best for you.

Very truly yours,

Tideline CPA Group, LLC

October 28, 2025

Dear Tideline Client:

We are writing to inform you about the significant new tax legislation (the Act) signed into law on July 4, 2025 (informally known as One Big Beautiful Bill or OBBB). The Act is comprehensive and includes key changes to a number of tax provisions potentially affecting your situation. Navigating these changes will be complex, but understanding them is essential for effective tax planning and optimizing your position.

We recommend setting up a meeting to ensure you are well-prepared both to leverage new opportunities and to address any challenges you may face in the wake of the changes made under the Act. In the meantime, please review this list, which highlights some of the major provisions impacting employers, employees, and other workers.

• Employee Retention Tax Credit (ERTC): Although an eligible employer was potentially entitled to claim a COVID-related ERTC until April 15, 2025, the Act prohibits IRS from issuing any ERTC refunds after July 4, 2025 (unless the taxpayer had filed the refund or credit claim before Jan. 31, 2024). The Act also adds a new $1,000 penalty on a “COVID-ERTC promoter” who aids or advises on COVID-ERTC documents without meeting due diligence requirements when determining eligibility for, or the amount of, a credit or advance payment under Code Sec. 3134 (the penalty is $1,000 per violation).
• Tips: The Act adds a new deduction of up to $25,000 for “qualified tips,” subject to phaseout for a taxpayer with MAGI exceeding $150,000 ($300,000 for joint filers). However, tips from certain specified service trades or businesses don’t qualify; no deduction is allowed unless the taxpayer includes a SSN on the applicable return; and other rules apply. Also, IRS is required to publish a list of occupations that customarily receive tips (including occupations that customarily and regularly received tips before 2025). IRS is also required to adjust withholding procedures to reflect the new deduction starting in 2026 (reporting entities may use reasonable methods to approximate designated tip amounts during the transition period). The deduction is set to expire after 2028.
• Overtime: The Act also adds a new deduction of up to $12,500 ($25,000 for joint filers) for “qualified overtime compensation,” subject to phaseout for a taxpayer with MAGI exceeding $150,000 ($300,000 for joint filers). Qualified overtime compensation is defined by reference to the Fair Labor Standards Act (and doesn’t include qualified tips). Similar to the new tips deduction, no overtime deduction is allowed unless the taxpayer includes a SSN on the applicable return and the deduction is set to expire after 2028. Also, IRS is required to update withholding procedures beginning in 2026 to reflect the new deduction.
• Paid Family and Medical Leave Credit: The Act makes this credit permanent. Also, under the Act, employers will choose between two methods for calculating the credit: the applicable percentage of the amount of wages paid to qualifying employees for any period in which the employees are on family and medical leave, or the applicable percentage of premiums paid or incurred by an employer for an insurance policy that provides paid family and medical leave (in other words, an employer chooses to take the credit based on wages paid or premiums paid). Other changes include that, at the election of the employer, an eligible employee can be one who has been employed by the employer for not less than six months, rather than one year. The changes under this provision apply to tax years after 2025.
• Employer-Provided Child Care Credit: Effective 2026, the Act enhances the employer-provided child care credit by increasing the credit percentage for “qualified child care expenditures” from 25% to 40% for regular businesses, 50% for eligible small businesses. The maximum credit is $500,000 ($600,000 for eligible small businesses), subject to annual inflation adjustments beginning in 2027.
• Employee Exclusion for Employer Payments of Student Loans: The Act makes permanent the employee exclusion for qualifying employer payments of student loans. Also, the Act provides an inflation adjustment to the statutory maximum exclusion amount ($5,250) for tax years beginning after 2026.
• Dependent Care Assistance Programs: The Act increases the annual tax-free limit for amounts paid or incurred by an employer pursuant to a dependent care assistance program to $7,500 ($3,750 for a married individual filing separately). This provision is effective for tax years beginning after 2025.
• Moving Expenses: The Act makes the prior suspension of the moving expense deduction and exclusion permanent for most taxpayers. However, the exception for active-duty members of the Armed Forces moving due to a military order and permanent change of station remains. There is also a new exception for U.S. intelligence community employees and appointees who relocate due to a change in assignment. This is effective for tax years after 2025.
• Bicycle Commuting Expenses: The Act permanently eliminates the qualified bicycle commuting reimbursement exclusion.
• 529 plans-Postsecondary Credentialing Expenses: The Act allows 529 savings plan distributions to apply to “qualified postsecondary credentialing expenses.” Recognized postsecondary credentials include occupational or professional licenses issued or recognized at the state or federal government level. They also include certificates of completion of an apprenticeship registered and certified with the Secretary of Labor and credentials as defined in Section 3(52) of the Workforce Innovation and Opportunity Act. This provision applies to distributions made after July 4, 2025.
• Information reporting, Forms 1099-NEC and 1099-MISC: For payments made after 2025, the reporting thresholds for Forms 1099-NEC and 1099-MISC are increased from $600 to $2,000 (adjusted for inflation after 2026). There is also a conforming change for backup withholding.

I hope you find this helpful. As noted above, these are just some of the changes in the Act. Please call to discuss specific provisions impacting you and develop a plan tailored to your situation.

Best regards,

Tideline CPA Group, LLC

October 28, 2025

Dear Tideline Client:

We are writing to inform you about the significant new tax legislation (the Act) signed into law on July 4, 2025 (informally known as One Big Beautiful Bill or OBBB). The Act is comprehensive and includes key changes to business-related provisions and incentives. Navigating these changes will be complex, but understanding them is essential for effective tax planning and optimizing your position.

We recommend setting up a meeting to ensure you are well-prepared both to leverage new opportunities and to address any challenges coming in the wake of the changes made under the Act. In the meantime, please review this list, which highlights some of the major provisions impacting businesses.

• Qualified Business Income (QBI) deduction: The Act makes this deduction permanent. It also sets a minimum deduction for active QBI for “applicable taxpayers” at $400; defines an applicable taxpayer as one whose aggregate QBI for all active qualified trades or businesses for the tax year is at least $1,000; and establishes inflation adjustments for the new minimums starting in post-2026 tax years. Also, the phase-in amounts are increased from $50,000 to $75,000 for single filers and from $100,000 to $150,000 for joint filers.
• Bonus depreciation: The Act makes additional first-year (bonus) depreciation for certain qualified property permanent at 100% (under prior law, it was to phase out to zero ). This provision is effective for property acquired after Jan. 19, 2025. There is also a new 100% bonus depreciation provision for “qualified production property” (QPP, which is certain non-residential real property used in the manufacturing, production or refining of certain tangible personal property). This QPP provision is effective for property placed in service after July 4, 2025.
• 179 Expensing limits: For property placed in service after 2024, the Code Sec. 179 expensing limits are increased to $2,500,000 and the phasedown threshold is increased to $4,000,000 (both subject to inflation adjustments).
• Business interest: For post-2025 tax years, the Act modifies the definition of adjusted taxable income for purposes of the Code Sec. 163(j) limitation on business interest.
• Deduction limitation for compensation of publicly held corporation executives: Under the Act, determining compensation that is subject to Code Sec. 162(m) , which limits the amounts that publicly held corporations may deduct for compensation of certain top executives to $1 million per year, is expanded for post-2025 tax years to include all members of a publicly-held corporation’s controlled group and affiliated service group under Code Sec. 414(b) , Code Sec. 414(c) , Code Sec. 414(m) , Code Sec. 414(o) (which is a broader group than under the pre-Act aggregation rule).
• Foreign tax credit (FTC)-allocation of deductions to foreign source net CFC tested income (formerly known as GILTI): The Act, which renames GILTI to net CFC tested income, limits the deductions that may be allocated to income in the net CFC tested income category to (i) the deduction for net CFC tested income itself as well as for taxes imposed on that income and (ii) any other deductions directly allocable to net CFC tested income. Also, no amount of interest expense or R&E expense may be allocated to this category. Deductions which would have been allocated to the net CFC tested income category but for this provision must instead be allocated to U.S. source taxable income for purposes of the FTC limitation. This provision is effective for tax years beginning after 2025.
• Exclusion of gain on the sale or exchange of qualified small business stock (QSBS): The Act provides that the “applicable percentage” (50% for stock held for 3 years, 75% for stock held for 4 years, and 100% for stock held for 5 years) of gain on the sale or exchange of QSBS may be excluded from gross income for QSBS acquired after July 4, 2025. Also, (i) the per-issuer limitation on eligible gain is increased from $10 million to $15 million, which will now be subject to inflation adjustments, and (ii) the $50 million aggregate gross asset limitation for QSB eligibility is increased to $75 million, which will now be subject to inflation adjustments.
• Enhanced manufacturing investment credit: The advanced manufacturing investment credit (also known as the semiconductor credit or the CHIPS credit) on qualified investments in an advanced manufacturing facility built before Jan. 1, 2027 is increased to 35% (up from 25%) for property placed in service after 2025.
• Information reporting, Form 1099-K: The Act retroactively reverts the Form 1099-K reporting threshold back to the pre-ARPA $20,000 and 200 transactions threshold.
• Information reporting, Forms 1099-NEC, 1099-MISC: For payments made after 2025, the reporting thresholds for Forms 1099-NEC and 1099-MISC are increased from $600 to $2,000 (adjusted for inflation after 2026).
• Gain on the sale of certain farmland property: For sales or exchanges occurring after July 4, 2025, sellers of qualified farmland property may elect to pay capital gains tax on the sale in four equal annual installments. The first payment is due with the return for the year in which the sale occurs, with the remaining payments being due with the successive years’ returns (but if a payment is missed, the balance is due immediately).
• Corporate charitable contributions: The Act imposes a new 1% floor (in addition to the 10% ceiling) on corporate charitable deductions for post-2025 tax years.
• Excess business losses: The Act makes the Code Sec. 461(l) limit on excess business losses permanent.
• Energy efficient commercial buildings deduction: Under the Act, the energy efficient commercial building deduction terminates for the cost of energy efficient commercial building property whose construction begins after June 30, 2026.
• Cost recovery for energy property: The Act eliminates 5-year MACRS classification for energy property effective for property for which construction begins after 2024.
• Advanced energy project credit: Effective July 4, 2025, “add backs” in the event of the revocation of a project certification are discontinued.
• Advanced manufacturing production credit: The Act terminates the credit for wind energy components produced and sold after Dec. 31, 2027. It also subjects pre-Act applicable critical minerals to a new phaseout schedule and tightens the rules regarding foreign entities.
• Energy efficient home improvement and new energy efficient home credits: The energy efficient home improvement credit under Code Sec. 25C is terminated for property placed in service after 2025. The new energy efficient home credit under Code Sec. 45L terminates for any qualified new energy efficient home acquired after June 30, 2026.
• Residential clean energy credit: The residential clean energy expenditures credit is terminated for any expenditures made after 2025.
• Clean vehicle credits: The credits for new and previously owned clean vehicles terminate for vehicles acquired after Sept. 30, 2025. The credit for qualified commercial clean vehicles also terminates for vehicles acquired after Sept. 30, 2025.
• Alternative fuel vehicle refueling property credits: The credit for “alternative fuel vehicle refueling property” (such as an EV charger) terminates for property placed in service after June 30, 2026.

I hope you find this helpful. As noted above, these are just some of the changes in the Act. Please call to discuss specific provisions impacting your business and develop a plan tailored to your situation.

Best regards,

Tideline CPA Group, LLC

​As part of a class action lawsuit, a settlement was reached that may entitle you to compensation if you accepted any Visa- or MasterCard-branded cards at any time from January 1, 2004 to January 25, 2019.

The deadline for claiming your share of the settlement is August 30, 2024. To submit a claim, you must go to https://www.paymentcardsettlement.com/en and follow the instructions for submission. You will need to obtain a claimant ID before you can submit a claim.

We encourage you to review the settlement details carefully and apply as soon as possible to ensure you do not miss the deadline. If you have any questions, please do not hesitate to contact us.