#TaxUpdate2025 Archives | Hutchinson and Bloodgood LLP

Tax Planning

Payroll tax implications of new tax breaks on tips and overtime

Waiter, serving, diners, restaurant, food, drinks, smiles, conversation, artwork, cozy.

September 12, 2025

Before the One Big Beautiful Bill Act (OBBBA), tip income and overtime income were fully taxable for federal income tax purposes. The new law changes that. Tip income deduction For 2025–2028, the OBBBA creates a new temporary federal income tax deduction that can offset up to $25,000 of annual qualified tip income. It begins to […]

#OBBBA, #TaxUpdate2025, #TipIncomeDeduction

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Tax Planning

No tax on car loan interest under the new law? Not exactly

ChatGPT said: A, desk, with, a, blue, toy, car, calculator, car, keys, and, a, person, in, the, background, writing, on, paperwork, suggesting, car, financing, or, purchasing.

August 15, 2025

H&B

Under current federal income tax rules, so-called personal interest expense generally can’t be deducted. One big exception is qualified residence interest or home mortgage interest, which can be deducted, subject to some limitations, if you itemize deductions on your tax return. The One Big Beautiful Bill Act (OBBBA) adds another exception for eligible car loan […]

#CarLoanInterest, #OBBBA, #TaxUpdate2025

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