LAT Financial Group

💡 Big win for tipped workers under H.R. 1: beginning in 2025, there’s an above the line deduction for “qualified tips” (up to $25,000) for occupations that customarily receive tips.

⚠️ This doesn’t eliminate requirement to report the tips, and Social Security / Medicare taxes still apply.

🧮 The deduction phases out: for singles, MAGI above $150,000; for joint, above $300,000.

Train your preparers on which occupations qualify, how to claim the deduction, and how to handle phase-outs.

Grab our updates course as we break these changes down entirely: taxiqacademy.com

👏 Big tax update for adoption cases:

Beginning tax year 2025, up to $5,000 of the Adoption Credit is refundable🎉🎉.

Starting 2026, that refundable portion will adjust for inflation annually.

This shift makes adoption support more financially accessible.

🔗 Learn more at taxiqacademy.com