Corporate extensions . . .

are due Sept 15^th if you have not made your appointment or sent me your information you need to do so ASAP.

Personal extensions . . .

are due October 15^th so please get on my calendar or drop off your stuff.

Hours

I am open 10 am to 4 pm this time of year during tax season I have extended hours.

I can and will make reasonable exceptions during September and October to get through extensions. The best way to contact me is by email. Please note some of my clients have put a “S” at the end of “services” in my Gmail address which is incorrect.  sunsettaxservice@gmail.com  All my emails are active and answered daily.  Office 704-391-1533 or 704-391-1535

Please note

I cannot file your taxes without a signed efileslip, this has been a problem for the past two years, and the taxes do not getfiled. If you’re due a refund and do not receive it within 21 days, please contact my office.

I want to thank you all for your loyalty and referrals over the years. As everything around us had dramatically increased, I am forced to raise my rate for the 2025 tax filing. I will still be way below the average market price and will provide discounts for those in need.

 

ONE BIG BEAUTIFUL BILL

“No Tax on Tips”

• New deduction: Effective for 2025 through 2028, employees and self-employed individuals may deduct qualified tips received in occupations that are listed by the IRS as customarily and regularly receiving tips on or before December 31, 2024, and that are reported on a Form W-2, Form 1099, or other specified statement furnished to the individual or reported directly by the individual on Form 4137.
  • “Qualified tips” are voluntary cash or charged tips received from customers or through tip sharing.
  • Maximum annual deduction is $25,000; for self-employed, deduction may not exceed individual’s net income (without regard to this deduction) from the trade or business in which the tips were earned.
  • Deduction phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers).
  • Industries below
  • 100’s Food and beverage industry
  • 200’s entertainment and events industry
  • 300’s Hospitality & Guest Services industry
  • 400’s Home services industry
  • 500’s Personal Service industry
  • 600’s Personal Appearance and Wellness industry
  • 700’s Recreation and Instruction industry
  • 800’s Transportation or delivery industry
• Taxpayer eligibility: Deduction is available for both itemizing and non-itemizing taxpayers.
  • Self-employed individuals in a Specified Service Trade or Business (SSTB) under section 199A are not eligible. Employees whose employer is in an SSTB also are not eligible.
  • Taxpayers must:
    • include their Social Security Number on the return and
    • file jointly if married, to claim the deduction.
• Reporting: Employers and other payors must file information returns with the IRS (or SSA) and furnish statements to taxpayers showing certain cash tips received and the occupation of the tip recipient.
• Guidance: By October 2, 2025, the IRS must publish a list of occupations that “customarily and regularly” received tips on or before December 31, 2024.
  • The IRS will provide transition relief for tax year 2025 for taxpayers claiming the deduction and for employers and payors subject to the new reporting requirements.
  • 100’s Food and beverage industry
  • 200’s entertainment and events industry
  • 300’s Hospitality & Guest Services industry
  • 400’s Home services industry
  • 500’s Personal Service industry
  • 600’s Personal Appearance and Wellness industry
  • 700’s Recreation and Instruction industry
  • 800’s Transportation or delivery industry

“No Tax on Overtime”

(part 1)

New deduction: Effective for 2025 through 2028, individuals who receive qualified overtime compensation may deduct the pay that exceeds their regular rate of pay – such as the “half” portion of “time-and-a-half” compensation — that is required by the Fair Labor Standards Act (FLSA) and that is reported on a Form W-2, Form 1099, or other specified statement furnished to the individual.

• • Maximum annual deduction is $12,500 ($25,000 for joint filers).
  • Deduction phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers).
• Taxpayer eligibility: Deduction is available for both itemizing and non-itemizing taxpayers.
  • Taxpayers must:
    • include their Social Security Number on the return and
    • file jointly if married, to claim the deduction.
• Reporting: Employers and other payors are required to file information returns with the IRS (or SSA) and furnish statements to taxpayers showing the total amount of qualified overtime compensation paid during the year.
• Guidance: The IRS will provide transition relief for tax year 2025 for taxpayers claiming the deduction and for employers and other payors subject to the new reporting requirements.

“No Tax on Car Loan Interest”

• New deduction: Effective for 2025 through 2028, individuals may deduct interest paid on a loan used to purchase a qualified vehicle, provided the vehicle is purchased for personal use and meets other eligibility criteria. (Lease payments do not qualify.)
  • Maximum annual deduction is $10,000.
  • Deduction phases out for taxpayers with modified adjusted gross income over $100,000 ($200,000 for joint filers).
• Qualified interest: To qualify for the deduction, the interest must be paid on a loan that is:
  • originated after December 31, 2024,

(part 2 )

• • used to purchase a vehicle, the original use of which starts with the taxpayer (used vehicles do not qualify),
  • for a personal use vehicle (not for business or commercial use) and
  • secured by a lien on the vehicle.

If a qualifying vehicle loan is later refinanced, interest paid on the refinanced amount is generally eligible for the deduction.

• Qualified vehicle: A qualified vehicle is a car, minivan, van, SUV, pick-up truck or motorcycle, with a gross vehicle weight rating of less than 14,000 pounds, and that has undergone final assembly in the United States.
• Final assembly in the United States: The location of final assembly will be listed on the vehicle information label attached to each vehicle on a dealer’s premises. Alternatively, taxpayers may rely on the vehicle’s plant of manufacture as reported in the vehicle identification number (VIN) to determine whether a vehicle has undergone final assembly in the United States.
  • The VIN Decoder website for the National Highway Traffic Safety Administration (NHTSA) provides plant of manufacture information. Taxpayers can follow the instructions on that website to determine if the vehicle’s plant of manufacture was located in the United States.
• Taxpayer eligibility: Deduction is available for both itemizing and non-itemizing taxpayers.
  • The taxpayer must include the Vehicle Identification Number (VIN) of the qualified vehicle on the tax return for any year in which the deduction is claimed.
• Reporting: Lenders or other recipients of qualified interest must file information returns with the IRS and furnish statements to taxpayers showing the total amount of interest received during the taxable year.
• Guidance: The IRS will provide transition relief for tax year 2025 for interest recipients subject to the new reporting requirements.

Deduction for Seniors New deduction:

 Effective for 2025 through 2028, individuals who are age 65 and older may claim an additional deduction of $6,000. This new deduction is in addition to the current additional standard deduction for seniors under existing law.

• • The $6,000 senior deduction is per eligible individual (i.e., $12,000 total for a married couple where both spouses qualify).
  • Deduction phases out for taxpayers with modified adjusted gross income over $75,000 ($150,000 for joint filers).
• Qualifying taxpayers: To qualify for the additional deduction, a taxpayer must attain age 65 on or before the last day of the taxable year.
• Taxpayer eligibility: Deduction is available for both itemizing and non-itemizing taxpayers.
  • Taxpayers must:
    • include the Social Security Number of the qualifying individual(s) on the return, and
    • file jointly if married, to claim the deduction.

Key details for the 2025 Child Tax Credit:

• Credit amount: The maximum credit is $2,200 per qualifying child. The credit is scheduled to be indexed for inflation in subsequent years.
• Refundable portion: The credit is partially refundable. The refundable portion, called the Additional Child Tax Credit (ACTC), is worth up to $1,700 per qualifying child. This allows eligible families to receive a refund even if they don’t owe any income tax.
• Eligibility requirements
• To claim the credit, you and your child must meet certain qualifications:
• Age: The child must be under age 17 at the end of the tax year.
• Relationship: The child must be your son, daughter, stepchild, eligible foster child, sibling, or a descendant of any of these relatives.
• Residency: The child must live with you for more than half of the year.
• Support: The child must not provide more than half of their own financial support for the year.
• Citizenship: The child must be a U.S. citizen, U.S. national, or U.S. resident alien and have a valid Social Security Number.
• New ID rule: For 2025, a new rule requires that the taxpayer claiming the credit (or at least one spouse if filing jointly) also has a work-eligible Social Security Number.
• Income limits
• The maximum credit is available to filers within specific income brackets. For every $1,000 of modified adjusted gross income (MAGI) over the threshold, the credit is reduced by $50.
• Full credit: If your MAGI is $200,000 or less (for single, head of household, or married filing separately) or $400,000 or less (for married filing jointly).
• Reduced credit: For those with higher incomes, the credit amount is reduced until it phases out completely.

 

The following incentives expire the soonest:

Code section	Section title	Termination date
25C	Energy efficient home improvement credit	The credit will not be allowed for any property placed in service after December 31, 2025.
25D	Residential clean energy credit	The credit will not be allowed for any expenditures made after December 31, 2025.
25E	Previously-owned clean vehicles credit	The credit will not be allowed with respect to any vehicle acquired after September 30, 2025.
30C	Alternative fuel vehicle refueling property credit	The credit will not be allowed for any property placed in service after June 30, 2026.
30D	New clean vehicle credit	The credit will not be allowed for any vehicle acquired after September 30, 2025.
45L	New energy efficient home credit	The credit will not be allowed for any qualified new energy efficient home acquired after June 30, 2026.
45W	Qualified commercial clean vehicle credit	The credit will not be allowed for any vehicle acquired after September 30, 2025.
179D	Energy efficient commercial buildings deduction	The deduction will not be allowed with respect to any property the construction of which begins after June 30, 2026.