SALT limit change in the House bill

One of the tallest hurdles House lawmakers had to overcome to pass The One, Big, Beautiful Bill involved the limit on the state and local tax (SALT) deduction. The Tax Cuts and Jobs Act imposed a $10,000 cap on the deduction. Lawmakers from higher-tax states have wanted to increase the limit (or eliminate it altogether) […]

Will the Child Tax Credit Change?

As Congress deliberates over The One, Big, Beautiful Bill, you may wonder how the Child Tax Credit (CTC) could change. Under current law, the $2,000 per child CTC is set to drop to $1,000 after 2025. The income phaseout thresholds will also be lower, which means fewer American families will qualify. And the requirement to […]

Senate passes bill that exempts tips from tax

On May 20, a bipartisan bill passed unanimously in the U.S. Senate that would exempt tips from federal income tax. The No Tax on Tips Act was introduced by Sen. Ted Cruz (R-TX) and co-sponsored by Sen. Jacky Rosen (D-NV). If enacted, it would create a deduction of up to $25,000 a year for certain […]

The House has passed a sweeping tax and spending bill

On May 22, the U.S. House passed the sweeping tax and spending bill by a vote of 215 to 214. The One, Big, Beautiful Bill now goes to the U.S. Senate, which is likely to make changes. It includes extensions of many provisions set to expire Dec. 31, along with some new and enhanced tax […]

Tax on Social Security

As debate among House Republicans continues, the campaign promise to end tax on Social Security benefits isn’t included in the current version of “The One, Big, Beautiful Bill.” However, seniors haven’t been forgotten. There’s a proposed provision for an enhanced deduction of $4,000 for eligible filers age 65 or older. To be eligible, modified adjusted […]

New Energy Efficient Home (45L) Credit may be terminated

Heads up if your construction business builds homes: The tax bill working its way through Congress terminates the New Energy Efficient Home (45L) Credit. The credit is designed to incentivize builders to construct energy-efficient single- and multifamily homes. Currently, eligible contractors that build or substantially remodel homes can claim federal tax credits of up to […]

SALT tax

Even though the U.S. House Ways and Means Committee has approved a $3.8 trillion budget reconciliation bill, unresolved issues remain. Legislators who comprise the so-called SALT caucus, including Republicans from New York and California, aim to either raise or eliminate the current $10,000 cap on deducting state and local taxes. Some of these lawmakers claim […]

SALT Cap Workarounds for Some Pass-Through Entities Are Threatened

SALT Cap Workarounds for Some Pass-Through Entities Are Threatened by One, Big, Beautiful Bill https://bit.ly/43scMx3

How innocent spouse relief can help certain taxpayers

MAGA Accounts in the Trump Tax Bill

On May 14, the House Ways and Means Committee voted to advance “The One, Big, Beautiful Bill,” which contains President Trump’s tax priorities. One provision in the bill is a new savings option for children under age 8. If enacted, the tax-advantaged vehicles will be called Money Accounts for Growth and Advancement (MAGA). Eligible children […]