Tax

Hi Friend!

If you’re a business providing childcare support to your employees, the IRS has a generous incentive for you: the Employer-Provided Childcare Tax Credit, worth up to $150,000 per year.

Here’s what you need to know to take advantage of this underutilized credit.

💡 What is the Employer-Provided Childcare Tax Credit?

This credit helps businesses offset the costs of offering or supporting childcare services for employees. It’s designed to ease the financial burden of:

• Running or building a qualified childcare facility

• Offering resource and referral services to help employees find childcare

💰 How Much Is It Worth?

Your business could claim up to $150,000 annually, broken down as:

• 25% of qualified childcare facility expenses

• 10% of qualified resource and referral costs

✅ Who’s Eligible?

Any business that pays or incurs qualified childcare costs during the tax year can apply. These qualified expenses include:

• Building, acquiring, or expanding a licensed childcare facility

• Day-to-day operating costs

• Scholarships or training for childcare workers

• Referral contracts with qualified childcare facilities

• The childcare facility must meet all state and local regulations to be considered “qualified”.

📄 How to Claim the Credit

• File IRS Form 8882 – Credit for Employer-Provided Childcare Facilities and Services

• Attach to your tax return as part of your general business credit

• Carryback unused credits 1 year and carryforward for up to 20 years

• If you only receive the credit from a pass-through entity, report it directly on Form 3800

🔗 Learn More

Visit the IRS Employer-Provided Childcare Credit page to dive into eligibility requirements and filing instructions.

Supporting childcare is good for business, good for families — and now, great for your tax bill. Don’t leave this credit on the table!

⏱️ Starting in 2025, thanks to the One Big Beautiful Bill Act (Public Law 119-21), workers who earn overtime can now enjoy a brand-new tax deduction.

📌 What’s Covered?

• You can deduct the extra pay above your regular rate - such as the “half” portion of the time-and-a-half compensation - that is required by the Fair Labor Standards Act (FLSA).

• Applies to income reported on Form W-2, Form 1099, or similar statements.

• Deduction is available for both itemizers and non-itemizers.

💸 Deduction Limits

• Up to $12,500 for single filers.

• Up to $25,000 for joint filers.

• Phases out once your modified AGI exceeds:

• $150,000 (single)

• $300,000 (joint)

✅ Eligibility Requirements

• Must include your Social Security Number on your return.

• Married taxpayers must file jointly to claim the deduction.

📝 Reporting Rules

• Employers and payors are now required to report total qualified overtime compensation to the IRS (or SSA) and provide statements to employees.

• The IRS will grant transition relief in 2025 for both workers and employers as everyone adjusts to the new reporting requirements.

⸻

🚀 Bottom line: If you’re putting in extra hours, Uncle Sam just gave you a break. Overtime pay will now stretch further — and that’s money back in your pocket.

👩‍💼 Need help making sure you qualify and maximize your deduction? Contact JUJU Accounting.

Hi Friend,

If you filed an extension for your 2024 individual federal taxes, you don’t have to wait until the October 15 deadline to file. The IRS still offers free ways to file — and we’re breaking them down for you here.

💸 IRS Free File (for incomes $84,000 or less)

If you made $84,000 or less in 2024, you can use IRS Free File to prepare and e-file your federal return online — totally free.

This option uses guided tax prep software to help you claim valuable credits like:

✅ The Earned Income Tax Credit

✅ The Child and Dependent Care Credit

➡️ Start Free Filing at IRS.gov/freefile »

✍️ Free File Fillable Forms (for the confident DIYers)

No income limit here! But this is best for people who are comfortable preparing their own returns. You fill out the electronic forms manually — no guided help.

Think of it as the IRS version of filling out your own 1040 on screen.

🎖️ MilTax (for military and families)

Active duty military members and certain veterans qualify for MilTax, a free filing program provided by the Department of Defense.

It includes:

1 federal return

Up to 3 state returns

➡️ Check MilTax eligibility »

📲 Other E-Filing Options

You can also use commercial tax software to e-file through IRS-authorized channels. Your return will be checked for math mistakes or missing info before it’s accepted.

Need help? Use the IRS e-File Provider Database to find a qualified pro near you:

➡️ Search IRS e-file Providers »

⚠️ Disaster Area? You May Have Extra Time

If you live in a federally declared disaster area, you may automatically get more time to file.

➡️ Check for current tax relief info »

Just because you have until October 15 doesn’t mean you should wait. The sooner you file, the sooner you can fix any issues and receive your refund (if you're getting one)!

As always, if you're stuck — contact us! 💬

Tax season may come and go, but identity thieves work year-round. As scammers get sneakier, it’s more important than ever to know how the real IRS reaches out—and how to spot a scam in disguise.

Here’s what every taxpayer should know:

🚫 What the IRS Will Not Do

The IRS will never make initial contact with you through:

• 📧 Email

• 📱 Text messages

• 💬 Social media messages

Those are all red flags 🚩. Common scams include:

• Phishing emails pretending to be about a refund or bill

• Fake IRS social media profiles messaging about “stimulus” or “tax credits”

• Texts with urgent calls to action and suspicious links

🔒 Reminder: The IRS only sends texts or emails if you opted in—and only for things you subscribed to.

📬 What the IRS Will Do First

The IRS starts with a letter or notice by mail.

To check if a letter is legit:

• Log in to your IRS Online Account to see if the letter is there

• Compare it to official letters at Understanding Your IRS Notice or Letter

• Call the IRS directly to verify

💡 Got a notice from a private collection agency? It should match your official IRS CP40 notice and have the same Taxpayer Authentication Number.

📞 What About Phone Calls?

Yes, the IRS may call after sending a letter, for things like:

• Confirming appointments

• Discussing a scheduled audit

But they won’t:

• Leave pre-recorded or threatening voicemails

• Claim you’ll be arrested if you don’t call back

• Demand payment via gift cards, Venmo, or prepaid cards

Only use the IRS’s official payment options to pay any tax bills.

🚷 What About Home Visits?

The IRS has ended most unannounced home visits to protect both you and IRS employees. If someone shows up claiming to be from the IRS, that’s already suspicious.

🧠 Stay Informed and Stay Safe

If you think you’ve been targeted:

• Visit the IRS page on reporting phishing and scams

• Browse the latest IRS consumer alerts

• Learn about IRS-authorized Private Debt Collection Frequently Asked Questions

If you’re ever unsure, don’t engage. Just ask us—or check directly on IRS.gov. It’s always better to be cautious than to fall for a clever scam.

Tax-related identity theft is still one of the fastest-growing types of financial fraud — but there’s a simple, powerful step you can take to protect yourself: set up an IRS Online Account and request an Identity Protection PIN (IP PIN).

Here’s why it matters — and how to get started.

✅ What is an IP PIN?

An Identity Protection PIN is a unique six-digit number issued by the IRS to verify your identity when you file your federal tax return. It adds an extra layer of security, even if you’re not required to file or you live outside the U.S.

Once issued, only you and the IRS know your IP PIN. Even if someone has your Social Security Number or ITIN, they can’t file a valid tax return without your IP PIN.

📌 Key Things to Know

• Anyone with an SSN or ITIN can get one — including U.S. citizens living abroad.

• You must verify your identity to receive one.

• Tax pros can’t get it for you — but they can use it once you provide it.

• A new IP PIN is issued every year.

• You’ll need to use your IP PIN for all federal tax returns during the year — including late or amended filings.

• It’s voluntary, but strongly encouraged for added protection.

• The IRS will never contact you to ask for your IP PIN. Don’t fall for phishing calls, emails, or texts!

🧾 How to Request an IP PIN

Fastest way:

• Log in to your IRS Online Account at IRS.gov.

• Go to the “Profile” page and select “Get an IP PIN.”

• If you don’t have an online account, follow the prompts to register and verify your identity.

Can’t verify online?

If you're unable to verify your identity digitally:

• File Form 15227 if your income (your adjusted gross income on your last filed return) is under $84,000 (individual) or $168,000 (married filing jointly).

• Or, make an appointment at a Taxpayer Assistance Center.

🎯 For Tax Pros and Victims of Fraud

If you’ve been affected by identity theft in the past, an IP PIN can help prevent repeat fraud. Tax professionals should recommend this tool to clients who’ve had their info misused — even if a fraudulent return has already been filed.

🔐 Want to Learn More?

Explore these IRS resources:

• Identity Theft Central

• Publication 5293: Data Security Resource Guide for Tax Pros

Stay one step ahead of fraudsters.

Set up your IRS Online Account and protect your identity with an IP PIN today.

📬 Have questions? Contact us — we’re here to help.

If you filed an extension for your individual or C Corporation federal tax return earlier this year, your new deadline is Wednesday, October 15, 2025. If you already have your documents ready, there’s no reason to wait—filing now can help you avoid last-minute stress.

Here are a few key reminders to make sure you're on track:

✅ File by October 15

E-file your return and select direct deposit for your refund—it's the fastest and safest way to get your money.

🌀 In a disaster area? You might have more time to file. Check the IRS disaster relief page for updates.

💻 Free Filing Help Still Available

If your income is $84,000 or less, you can file for free using IRS Free File on IRS.gov. The deadline is also October 15, 2025.

Need in-person help? Free basic tax prep may still be available if you qualify for:

• The Earned Income Tax Credit (EITC)

• Disability-related assistance

• Limited English-speaking support

Check for VITA or TCE locations near you.

💳 Payment Options if You Owe

If you owe taxes but can’t pay in full, don’t wait. Pay as much as you can now to reduce penalties and interest. You can:

• Apply for a payment plan online

• View your balance and payment options through your IRS account

Start here: View your account at IRS.gov

🤝 Tax Pros Are Here to Help

Feeling overwhelmed? JUJU Accounting is here to help. Reach out anytime for assistance.

If you or someone you love is living with a disability, there’s good news: ABLE (Achieving a Better Life Experience) accounts can help you save for disability-related expenses without affecting eligibility for essential government benefits like Medicaid or SSI.

💡 What’s an ABLE Account?

An ABLE account is a tax-advantaged savings account for individuals who became disabled before age 26. These accounts are specifically designed to help cover qualified disability-related expenses – like education, housing, assistive technology, or transportation – without jeopardizing access to programs you rely on.

Tax perks: While contributions aren’t deductible for federal taxes, earnings and distributions are tax-free when used for qualified expenses.

2025 contribution limit: Up to $19,000 can be contributed annually.

Additional contributions: If you’re employed, you may be able to contribute even more – up to:

• $15,650 in the continental U.S.

• $19,550 in Alaska

• $17,990 in Hawaii

🎁 Extra Savings Boost: The Saver’s Credit

If you contribute to your own ABLE account, you might qualify for the Saver’s Credit, which can reduce the amount of tax you owe (or increase your refund). You must:

• Be 18 or older by year-end

• Not be claimed as a dependent or a full-time student

• Meet income limits

You’ll need to file Form 8880 to claim this valuable non-refundable credit.

🔁 What About 529 Plan Rollovers?

Families with leftover funds in a 529 education savings account can roll over those funds to an ABLE account, as long as:

• The ABLE account belongs to the same person or a qualified family member, and

• The rollover doesn’t exceed the yearly contribution limit

Example: If the annual ABLE contribution limit is $19,000 and you roll over $8,000 from a 529 plan, you can still contribute $11,000 for that year.

✅ What Can You Pay For?

Qualified disability expenses include things like:

• Education and training

• Healthcare and personal support services

• Transportation

• Housing

• Employment support

Check Publication 907 for a full list of eligible uses.

🧾 Important Forms to Know

Form 1099-QA: Shows ABLE distributions

Form 5498-QA: Shows ABLE contributions

Use these when filing your taxes to report or track account activity

ABLE accounts offer a powerful and flexible way to save for disability-related needs—with no risk to your benefits and with possible tax savings through the Saver’s Credit.

Need help deciding if an ABLE account is right for you? Contact us!

What’s better than a great deal? A tax-free one.

Sales tax holidays are back for 2025, and if you know when and where to shop, you can save serious money—especially on back-to-school items, tech, clothing, and even emergency supplies.

🗓️ What Is a Sales Tax Holiday?

A sales tax holiday is a short period when certain items are exempt from state sales tax—typically a weekend, but some states extend the savings for a week or more. These holidays are most common in July and August, right in time for back-to-school shopping, but some states also offer tax-free savings on items like energy-efficient appliances, hurricane-preparedness supplies, and hunting gear.

⚠️ Heads up: Not every state has a sales tax holiday. And even if your state waives its sales tax, local taxes may still apply. Check your local rules before you head to the store!

🛒 2025 Tax-Free Weekends by State

State   Dates Eligible items / Maximum cost per item

________________________________________________________________

 Alabama July 18-20   - Clothing / $100

 - Computers / $750 

 - School supplies / $50 

 - Books / $30 

_________________________________________________________________

Arkansas Aug. 2-3 - Clothing and footwear / Less than $100 

 - Accessories / Less than $50 

 - School supplies / No maximum

_________________________________________________________________

Connecticut     Aug. 17-23 Clothing and footwear / Less than $100

_________________________________________________________________

Florida   Aug. 1-31 - School supplies / $50 

 - Clothing, footwear and accessories / $100 

 - Computers and accessories / $1,500 

 - Learning aids and jigsaw puzzles / $30

  Sept. 8-Dec. 31     Tools / Varying maximums

__________________________________________________________________

Iowa Aug. 1-2 Clothing and footwear / Less than $100

__________________________________________________________________

Maryland Aug. 10-16 - Clothing and footwear / $100 

- Backpacks / First $40 

__________________________________________________________________

Massachusetts Aug. 9-10 All retail items for personal use (except vehicles, food, alcohol, 

 gas, certain utilities, tobacco, marijuana) / $2,500

___________________________________________________________________

Mississippi July 11-13   - Clothing and footwear / Less than $100 

 - Select school supplies / Less than $100 

   Aug. 29-31   Firearms, ammunition and hunting supplies / No maximum

____________________________________________________________________

Missouri Aug. 1-3 - Clothing / $100 

- School supplies / $50 

- Computers and peripheral devices / $1,500 

- Computer software / $350 

- Graphing calculators / $150 

_____________________________________________________________________

Nevada Oct. 31-Nov. 2 Purchases by National Guard members or qualifying relatives / No maximum

_____________________________________________________________________

New Mexico July 25-27 - Clothing / Less than $100 

- Computers / $1,000 

 - Computer equipment / $500 

 - Certain school supplies / Less than $30 

______________________________________________________________________

Ohio Aug. 1-14 All tangible personal property (except certain watercrafts or outboard 

motors, motor vehicles, alcohol, tobacco, vapor products, marijuana) / $500

______________________________________________________________________

Oklahoma Aug. 1-3 Clothing and footwear / Less than $100

______________________________________________________________________

South Carolina Aug. 1-3 Items include computers, school supplies and clothing / No maximum

______________________________________________________________________ 

Tennessee July 25-27 - Clothing / $100 

 - School supplies / $100 

 - Computers and tablets / $1,500 

______________________________________________________________________

Texas Aug. 8-10 Clothing, backpacks and school supplies / Less than $100

______________________________________________________________________ 

Virginia Aug. 1-3 - Clothing / $100 

 - School supplies / $20 

 - Energy Star and WaterSense products / $2,500 

 - Hurricane-preparedness items / $60 

 - Generators / $1,000 

______________________________________________________________________

West Virginia Aug. 1-4 - Clothing / $125 

- School supplies / $50 

- School instruction material / $20 

- Sports equipment / $150 

- Computers and tablets / $500

______________________________________________________________________

👉 Want the full list? Visit your state’s tax department website or search “2025 sales tax holiday [your state]” for the official breakdown.

💡 Pro Tips for Maximum Savings

1. Time Big Purchases Right

Need a new laptop or school clothes? Shop during your state’s tax-free weekend to avoid paying extra. Items often have price limits (e.g., clothes must be under $100), so check before you buy.

2. Know What Counts (and What Doesn’t)

Not everything qualifies. For example, New Mexico excludes sports uniforms and bathing suits from its tax holiday. Always check your state’s fine print.

3. Stack Your Savings

Use coupons, promo codes, and price comparison tools to lower your total even more. Tax-free is great—but combined with a deal? Even better.

4. Look Beyond Back-to-School

Sales tax holidays aren’t just for students. Some states offer them for emergency supplies, energy-saving appliances, and hunting gear—perfect for prepping ahead.

📌 Bottom Line

Sales tax holidays offer a limited-time chance to save, so mark your calendar, plan your purchases, and don’t miss out. Whether you’re stocking up for school or snagging a new computer, every dollar counts—especially when you can skip the tax.

Need help with tax planning or bookkeeping?

Contact us today for expert support. 

Part of the IRS “Protect Your Clients; Protect Yourself” Summer Security Series

Tax scams are evolving—and fast. In Week 2 of the IRS’s “Protect Your Clients; Protect Yourself” campaign, the IRS and Security Summit partners are sounding the alarm on phishing attacks and related cyber threats that specifically target tax professionals like us.

🔍 What’s Happening?

Cybercriminals are getting smarter—sending convincing emails and texts that look legit, but are designed to steal sensitive client data, install malware, or gain access to your systems. Whether it's a fake IRS email or a phony “new client” inquiry, one wrong click can lead to a major data breach.

⚠️ Common Tax Scam Tactics

• Phishing/Smishing:

Mass emails or texts with malicious links or attachments. Often appear to be from IRS, banks, or tax software providers.

• Spear Phishing:

Aimed at specific individuals using personal details to build trust and credibility.

• Clone Phishing:

A real email gets duplicated with dangerous links or infected attachments.

• Whaling:

Targets high-level individuals like firm owners, payroll managers, or financial officers.

• New Client Scam:

Scammers pose as potential clients to trick pros into opening dangerous links or files.

🚨 Red Flags to Watch For

• Emails with a sense of urgency: "Act now or lose access!"

• Links or email addresses with slight misspellings (like IRS.com instead of IRS.gov).

• Attachments from someone you weren’t expecting, even if the sender looks familiar.

• Duplicate messages from a known contact—but with new links or requests.

🛡️ 6 Easy Steps to Strengthen Your Cybersecurity

The “Security Six” is a simple checklist all tax pros should follow:

• Install & Update Antivirus Software

• Use a Strong Firewall

• Enable Multi-Factor Authentication

• Back Up Data Regularly

• Encrypt Your Drives

• Use a Secure VPN When Working Remotely

📣 If You’ve Been Targeted or Compromised

• Contact your IRS Stakeholder Liaison

• Notify your state tax agency via the Federation of Tax Administrators breach page

📚 Additional IRS Security Resources for Tax Pros

• Publication 4557: Safeguarding Taxpayer Data (https://www.irs.gov/pub/irs-pdf/p4557.pdf)

• Publication 5293: Data Security Resource Guide (https://www.irs.gov/pub/irs-pdf/p5293.pdf)

• Publication 5708 & 5709: Written Information Security Plans (Publication 5708: https://www.irs.gov/pub/irs-pdf/p5708.pdf ; Publication 5709: https://www.irs.gov/pub/irs-pdf/p5709.pdf)

• IRS Identity Theft Info Center (https://www.irs.gov/identity-theft-central)

Stay safe and stay sharp!

Summer is in full swing—and while it’s a season for weddings, travel, home upgrades, and side gigs, many of these activities also come with tax implications. A little awareness now can mean a smoother tax season later. Here are some ways your summer fun might affect your next tax return:

Just Married? Make It Tax Official

If you recently tied the knot, congrats! A few quick updates now can prevent tax-time hassles:

• Report name changes to the Social Security Administration.

• Moved? File IRS Form 8822 and update your address with USPS and your employer.

Summer Day Camp = Possible Tax Credit

Sending your kids to summer day camp? You may be eligible for the Child and Dependent Care Credit.

Traveling for Business? Keep Your Records Tight

• Keep detailed records of dates, purpose, and expenses.

• Only the business portion of the trip is deductible—vacation days don’t count.

Part-Time or Gig Work? File Even If You Don’t Owe

Summer jobs, side hustles, and freelance gigs may not always result in a big tax bill—but you could still be owed a refund. File to claim it!

Earning via payment apps? You might get a 1099-K.

Learn more at the IRS Gig Economy Tax Center (https://www.irs.gov/businesses/gig-economy-tax-center).

Home Upgrades That Can Lower Your Tax Bill

• Up to $3,200 in Energy Efficient Home Improvement Credits for eligible items like windows, doors, HVAC, or water heaters.

• Residential Clean Energy Credits for solar panels, battery storage, geothermal, and more.

• Check eligibility at the IRS Home Energy Tax Credits page (https://www.irs.gov/credits-deductions/home-energy-tax-credits) and save your receipts.

Pro Tip: Document Now, Relax Later

Whether it’s a new address, a summer job, or a solar panel install—keep records! A bit of tracking now can lead to bigger refunds or smaller headaches next tax season.

If you have questions about how your summer activities could affect your taxes, we’re here to help. Reach out anytime!

Congress has officially passed the One Big Beautiful Bill, a sweeping package that reshapes U.S. tax law, locks in most of the 2017 Tax Cuts and Jobs Act (TCJA), and introduces major new individual and business tax provisions starting in 2025. It also impacts student loans, Pell Grants, the debt ceiling, and more.

Whether you're a tipped worker, a small business owner, or a tax strategist, this bill will likely affect you. Let’s break it all down.

🧾 What’s Changing — and When

🔹 For Individuals:

🔄 Starting Tax Year 2025 (filed in 2026):

1. No federal tax on tips and overtime

⤷ Up to $25,000 of tip income and $12,500 (single) / $25,000 (joint) of overtime pay is tax-free through 2028, with income phaseouts.

2. Senior deduction: $6,000 per qualifying senior (2025–2028), phases out at $75,000 AGI.

3. Child Tax Credit increased to $2,200 starting in 2026, indexed for inflation.

4. Adoption credit becomes partially refundable.

5. Standard deduction boost:

• $31,500 (joint)

• $23,625 (head of household)

• $15,750 (single) — all inflation-adjusted after 2025.

6. SALT deduction cap increases to $40,000 in 2025, rising 1% annually through 2029; phases out above $500,000 AGI, drops back to $10,000 after.

7. EV auto loan interest deduction: Up to $10,000 on U.S.-assembled vehicles, 2025–2028, phased out at $100k/$200k AGI.

8. Above-the-line charitable deduction: $1,000 ($2,000 joint) permanently.

9. 0.5% floor on itemized charitable deductions.

10. Trump Savings Accounts for children: details still pending, but expected 2025–2028.

11. IRA phaseouts and other thresholds adjust for inflation.

12. AMT exemption increases and remains indexed to inflation (but AMT phaseout thresholds revert to 2018 levels).

13. Earned Income Tax Credit - The maximum credit for filing jointly as a married couple and claiming three or more qualifying dependents amounts to $8,046 in 2025, with the credit completely phased out at $68,675 of adjusted gross income (AGI). If you are a Single filer with no dependents, you can receive a maximum credit of $649 with your phaseout beginning at $19,104 of AGI.

14. EV credit ends September 30, 2025.

🔄 From 2026 Forward (Permanent unless otherwise noted):

15. TCJA tax brackets locked in (10%, 12%, 22%, 24%, etc.) with additional 1-year inflation adjustment for lower brackets.

16. No personal exemptions (permanently repealed).

17. Increased standard deductions (indexed for inflation)

18. Increased Child Tax Credit (indexed for inflation)

19. $750,000 principal limit mortgage interest cap stays permanent.

20. Cap on itemized deductions limited to 35 cents per dollar for top bracket filers.

21. Itemized deductions eliminated or limited:

• Personal casualty losses

• Miscellaneous deductions (except teacher expenses)

• Moving expenses (except for military/intel)

22. Estate and lifetime gift tax exemption raised permanently to $15M single / $30M joint, indexed.

🔹 For Businesses:

🔄 Starting Tax Year 2025:

1. Bonus depreciation: 100% restored permanently.

2. R&D expensing: Immediate write-off restored permanently.

⤷ Small businesses can retroactively expense R&D back to 12/31/21.

3. EBITDA-based interest deduction limit returns permanently.

4. Section 179: Expensing cap expands to $2.5M (phased out at $4M+), inflation-adjusted.

5. 100% expensing for qualifying structures built between 1/19/25 and 1/19/29, in service by 1/1/31.

🔄 From 2026 Forward (Permanent unless otherwise noted):

6. QBI deduction (Section 199A) stays — 20% for pass-throughs, with expanded eligibility and a $400 minimum deduction.

7. 1099-K threshold raised to $10,000 — fewer gig workers will receive the form.

8. New 1% deduction floor on corporate charitable contributions.

💡 Green Tax Credit Changes:

1. EV & residential energy credits repealed after 2025.

2. Clean hydrogen, building efficiency, and solar/wind credits phased out or narrowed by 2027.

3. Clean fuel credit (45Z) extended to 2030 and expanded.

4. New FEOC (Foreign Entity of Concern) restrictions apply to multiple energy credits.

🌐 International Tax Reform

1. GILTI renamed to Net CFC Tested Income (NCTI), taxed at 12.6%–14%.

2. FDII renamed to Foreign-Derived Deduction Eligible Income (FDDEI), taxed at 14%.

3. BEAT rate raised to 10.5%.

4. Indirect expense allocations removed, and foreign tax creditability rises to 90%.

📌 What Didn’t Change

1. Inflation adjustments to brackets and deductions remain automatic.

2. IRA contribution limits unchanged for 2025.

3. AMT structure still protects middle-income households.

4. No changes to payroll tax or Social Security contributions.

📅 Smart Planning Moves You Can Make Now

Individuals:

1. Tipped workers: Adjust W-4s to reflect tax-free tips in 2025.

2. High-income households: Time SALT payments strategically.

3. Seniors: Stack medical expenses in 2025 to pair with the $6,000 deduction.

4. EV buyers: Buy before September 30, 2025 to claim the final EV credit.

Businesses:

1. CapEx ahead: Plan large purchases for 2025 to use 100% bonus depreciation.

2. Manufacturers: Design facility expansions to qualify for temporary 100% structure expensing.

3. R&D-heavy startups: Retroactively claim past R&D expenses starting immediately.

4. 1099-K reporters: Update internal systems for new $10k reporting threshold.

❓ Frequently Asked Questions

1. Does the tip/overtime exclusion last forever?

No, it expires after 2028 unless extended.

2. Is the SALT cap removed?

No — just temporarily raised and phased out for high earners.

3. Can I still claim an EV credit in 2025?

Yes, but only if the car is placed in service by 9/30/25.

4. What about student loans?

Pell Grant and student loan reforms are included, but details are still being finalized.

5. Is this all permanent?

Many changes are permanent — but some, like the senior deduction and clean-tech deductions, are time-limited.

🛠️ What’s Next

1. The IRS and Treasury will issue guidance over the next 6–12 months. Expect:

2. New instructions for tip reporting and payroll withholding

3. Updated Schedule A guidance (esp. for SALT and charitable floors)

4. Revised depreciation schedules and Form 4562

5. Changes to FAFSA and student aid rules by 2026

🧠 JUJU Accounting Has Your Back

✨ Custom Projections: Let us model what OBBB means for your tax situation.

📞 Strategy Sessions: Schedule a 30-min call with Juju to plan 2025 deductions or restructure your entity.

🚀 Bottom Line

The One Big Beautiful Bill brings major tax opportunities for both individuals and businesses — but also introduces new limits, complexities, and planning deadlines. The earlier you start, the more you can save.

Let’s make sure you're ready.

Hey friends,

Ever get an envelope from the IRS and feel your heart drop a little? You're not alone. But don’t panic — most IRS letters are routine and don’t mean you’re in trouble. Here’s a quick guide on what to do if the IRS sends you mail.

Why the IRS Might Be Writing to You

The IRS usually sends notices or letters for one of these reasons:

• They have a question about your tax return.

• They made a change to your tax account.

• They’re requesting more information.

• They’re notifying you of a balance due or a correction.

Here’s What to Do:

• 1 Read It Carefully:
  Each notice addresses a specific issue and outlines the steps you should take. The faster you act, the more you can reduce penalties or interest if anything’s owed.

• 2 Review the Details:
  If the letter says your return was changed or corrected, compare it with your copy. If it makes sense, just keep a note with your records. If not, see #5 below.

• 3 Take Action (If Needed):
  If the letter asks for payment or documents, follow the instructions. You can also see many IRS letters by logging into your IRS Online Account. Payment plans are available if needed.

• 4 Only Reply If They Ask You To:
  Most notices don’t require a response. But if the letter says to reply — do it. If you need to call, use the number in the top right corner of the letter and have your tax return handy.

• 5 Don’t Ignore Mistakes:
  If something seems off, you can dispute it. Follow the instructions in the notice and send the IRS any documents that support your case.

• 6 Save That Letter!
  Keep any IRS notice you receive for at least 3 years. These are important records, especially if your tax return is ever audited or adjusted again.

Watch for Scams

The IRS will never contact you first via:

• Text

• Social media

• Email

Legit IRS contact almost always starts with snail mail. If you’re not sure if a letter is real, log into your IRS account or reach out to us — we’re happy to help double-check.

Need help reviewing an IRS letter?

JUJU Accounting has your back. We can help you figure out what it means and what to do next — so you don’t lose sleep over a piece of paper.

Love, Taxes, and the IRS – Here's What You Need to Know

Under certain circumstances, you can claim your boyfriend or girlfriend as a dependent on your tax return. If you're financially supporting your partner, the IRS might allow you to claim them for a tax benefit.

1 They lived with you all year.

Your partner must live in your home for the entire year, excluding temporary absences.

2 You provided over half of their support.

This includes basic needs such as food, housing, medical expenses, and transportation.

3 They made under $5,050 in gross income (2024).

Earnings over this threshold usually disqualify them unless it's tax-exempt income.

4 You’re not married.

If you're legally married, the dependent rule no longer applies.

5 No one else is claiming them.

Your partner cannot be claimed by someone else, such as their parent.

6 They meet the residency requirement.

They must be a U.S. citizen, national, or resident of the U.S., Canada, or Mexico.

What You Get:

If you meet all these requirements, you may be able to claim them as a “qualifying relative” and qualify for benefits like Head of Household status.

Note:

You won’t receive the Child Tax Credit for your partner, but you may qualify for other deductions. Keep documentation of shared expenses and income limits in case the IRS requests it.

Bottom Line:

If your partner depends on you financially, don’t overlook a potential tax break.

Even though the April 15 tax deadline has passed, it's not too late to take action if you couldn’t pay your tax bill in full. The IRS has several flexible payment options designed to help you catch up without unnecessary stress.

1. Online Payment Plans: Fast, Easy, and Available to Most 💻💸

Short-Term Payment Plan

• For balances under $100,000

• Gives you up to 180 days to pay in full

• Can be set up online in minutes

Long-Term Payment Plan

• For balances under $50,000

• Pay monthly for up to 10 years 🗓️

• Choose Direct Debit to automate payments and reduce the risk of default

Heads-up: Interest and penalties will continue to add up until the balance is paid

Apply through the IRS Online Payment Agreement Tool and get an instant decision—no phone calls, no paperwork! ✨

2. Can’t Qualify for a Payment Plan? Consider These Alternatives 🤔

Offer in Compromise

If your financial situation is serious, you may qualify to settle your tax debt for less than what you owe. Use the Offer in Compromise Pre-Qualifier to check eligibility. ✔️

Temporary Delay of Collection

If you’re facing financial hardship, the IRS may pause collections until your situation improves. Note: Interest and penalties will still accrue. ⏸️

3. Penalty Relief Might Be an Option 🛟

If you tried to comply with tax laws but couldn’t due to circumstances beyond your control, you may qualify for penalty relief. This could reduce or remove failure-to-file or failure-to-pay penalties.

4. Watch Out for Scams 🚨

The IRS will never call, text, or DM you asking for immediate payment.

Legit IRS communication comes by mail with clear instructions and options.

Not sure if you owe anything? Check securely with your IRS Online Account. 🔐

5. Estimated Tax Payment Reminder 🚨

Reminder: 2025 second quarter estimated tax payment (April 1–May 31) is due today, June 16, 2025.

Feel free to use our Estimated Tax Payment Checklist to see if you need to make a payment.

Need More Info? 📚

• Tax Topic 202: IRS Tax Payment Options

• Topic No. 653: Notices, Bills, Penalties, and Interest

• Visit IRS.gov for official tools and guidance

P.S. If you're unsure which option is right for you, or you’d like help navigating IRS tools, don’t hesitate to reach out. 

If you're a U.S. citizen or resident alien living or working abroad, the IRS wants you to know: your 2024 federal income tax return is due by Monday, June 16, 2025. This special deadline applies to expats, dual citizens, and military personnel stationed outside the U.S.

✈️ Who Gets the June 16 Deadline?

You're automatically granted this two-month extension from the usual April 15 deadline if either of the following applies:

• Your tax home and main place of business are outside the U.S. and Puerto Rico.

• You’re serving in the military or naval forces on duty outside the U.S. and Puerto Rico.

To use the extension, simply attach a statement to your tax return explaining which condition applies.

⏳ Need More Time?

You can request an additional extension to October 15, 2025, but remember:

An extension to file is not an extension to pay.

Interest applies to any tax owed after April 15, 2025.

File an extension online through IRS.gov or submit Form 4868 by mail if needed. Businesses use Form 7004.

💳 Making Payments from Abroad

You’ve got options—even without a U.S. bank account:

• IRS Direct Pay

• IRS Online Account

• EFTPS

• Foreign Wire Transfer (via Foreign Electronic Payments)

• Debit/credit card or digital wallet (note: fees may apply)

📅 Special Situations & Longer Extensions

• Military in combat zones: You may qualify for longer extensions automatically. See IRS Publication 3.

• Taxpayers affected by the Israel conflict: You may have until September 30, 2025, to file and pay. This includes taxpayers in Israel, Gaza, or the West Bank impacted since October 7, 2023.

💼 Don’t Miss Out on Tax Breaks

By filing, expats may qualify for:

• Foreign Earned Income Exclusion

• Foreign Tax Credit

Details in Publication 54.

🏦 Foreign Bank Accounts: Time to Report

If you had more than $10,000 in foreign financial accounts at any time in 2024, you must file:

FinCEN Form 114 (FBAR) by April 15, 2025 (automatic extension to October 15 available).

Form 8938 with your tax return if your foreign financial assets exceed reporting thresholds.

🌍 Global Income = U.S. Taxable

Yes, you still have to report:

• Worldwide income

• Foreign interest, dividends, and trusts

Include Schedule B with your return and disclose where your accounts are located.

💵 Report in U.S. Dollars

All income, deductions, and payments must be reported in USD, using the December 31, 2024 exchange rate. Use any posted rate consistently.

🛂 Renounced Citizenship or Green Card in 2024?

You’ll need to file a dual-status return. See Publication 519 for guidance.

Final Reminder:

Don’t miss the June 16 deadline—it’s not just about filing, it’s about protecting your eligibility for key credits and avoiding unnecessary penalties or interest.

Need help navigating your expat taxes? Feel free to reach out—we’re here for U.S. taxpayers around the globe. 🌍💼

If you (or a dependent) are in college, grad school, or pursuing a certificate program, you might qualify for one of two major education tax credits—but the rules can be tricky. Let’s clear it all up so you don’t leave money on the table!

1. American Opportunity Tax Credit (AOTC)

Up to $2,500 per student

• Covers 100% of the first $2,000 + 25% of the next $2,000 in qualified expenses.

• 40% refundable—you can get up to $1,000 back, even with no tax owed.

• Applies to the first 4 years of college.

• Covers tuition, fees, and required books/supplies/equipment—even if not bought from the school!

• Must be pursuing a degree or certificate and enrolled at least half-time.

 Income Limits (2024–2025):

• Phased out if your MAGI is over $80,000–$90,000 (single) or $160,000–$180,000 (MFJ).

2. Lifetime Learning Credit (LLC)

Up to $2,000 per tax return

• Equals 20% of up to $10,000 in eligible expenses.

• Great for grad school, part-time study, or career development.

• No limit on how many years you can claim it!

• Covers tuition and fees—but books/supplies count only if paid directly to the school.

• No degree requirement, and no half-time enrollment needed.

 Same Income Limits as AOTC:

• Phased out at $80,000–$90,000 (single) / $160,000–$180,000 (MFJ).

3. What’s a Qualified Education Expense?

Eligible for AOTC:

• Tuition

• Fees

• Books, supplies, and equipment required for enrollment (even if purchased off-campus)

• Lab kits or special tools (if required)

Eligible for LLC:

• Tuition

• Fees

• Books/supplies/equipment only if paid directly to the school

 Not Covered by Either Credit:

• Room and board

• Insurance

• Transportation

• Sports or fitness fees (unless required by the course)

4. One Credit Per Student Rule

• You can’t claim both AOTC and LLC for the same student in the same year.

• You can claim AOTC for one student and LLC for another (e.g., your child and yourself).

5. Don’t Forget These Essentials

• You’ll need Form 1098-T from the school to claim either credit.

• Scholarships and grants reduce your qualified expenses. (Example: If tuition is $10,000 and you get a $4,000 scholarship, only $6,000 qualifies.)

• K–12 expenses don’t count—these are for postsecondary education only.

Real Talk from JUJU

If you're paying for school—or helping someone else who is—these credits can put serious cash back in your pocket. But they each have specific rules, and small mistakes can cost you. So keep receipts, double-check your 1098-T, and make sure you're not accidentally claiming ineligible expenses.

Got questions about your situation? Need help filing or planning ahead? You know where to find me.