Elite Tax and Notary

🚨 Attention Tax Professionals: Major Child Tax Credit Changes Begin Tax Year 2025
The One Big Beautiful Bill Act (OBBBA) didn’t just increase Child Tax Credit amounts it tightened eligibility rules in critical ways. Before filing your first 2025 return, make sure you understand the new compliance “gates” that could disqualify clients and expose your practice to penalties.

🔒 New Parental SSN Requirement
Starting in Tax Year 2025, it is no longer sufficient for only the child to have a valid SSN. To claim the CTC or ACTC, the taxpayer or at least one spouse on a joint return must generally have a work eligible Social Security Number.

➡️ Families where both parents use ITINs are no longer eligible, even if the child is a U.S. citizen.
⚠️ Watch the “DHS Legend” on SSN Cards
If a client’s SSN card reads “Valid for Work Only With DHS Authorization,” proceed carefully. IRS guidance confirms these SSNs are acceptable only while DHS work authorization is active.

➡️ If authorization has expired at the time of filing, the SSN may be treated as invalid for credit purposes.
📅 Public Benefit Classification Timing Matters
The DOJ has classified the ACTC as a federal public benefit, and Treasury has announced additional restrictions for non-qualified aliens starting in Tax Year 2026.

➡️ Do not retroactively apply 2026 restrictions to 2025 returns. Eligible clients in 2025 should not be denied based on future rules.
📘 Stay Ahead of the Changes

📢 2025 Tax Deductions You Should Know About

For 2025 TY, several above the line deductions are available on Schedule 1-A, meaning you can claim them even if you take the standard deduction.

Here’s a quick breakdown 👇🏾

💵 No Tax on Tips

Deduction for qualified tip income
Must file married filing jointly if married
2025 tax forms do not separately list tips, but the requirement is met if tips are included in total reported income
Maximum deduction: $25,000 total (combined for spouses)

⏱️ No Tax on Overtime

Overtime pay is still taxable but may be deductible
Limit: $12,500 single / $25,000 married filing jointly
The limit is combined, not per spouse
Some employers may report overtime in W-2 Box 14

🚗 No Tax on Car Loan Interest

Deduction for Qualified Passenger Vehicle Loan Interest (QPVLI)
Up to $10,000 deductible
Income phaseout:
$200,000 MFJ
$100,000 all other filers

👵🏾🧓🏾 Enhanced Deduction for Seniors

Born before January 2, 1961
Must file jointly if married and have a valid SSN
$6,000 per person ($12,000 if both spouses qualify)
Income limits:
$150,000 MFJ
$75,000 others

✅ Don’t Miss These Deductions

These deductions can significantly reduce your taxable income—but many taxpayers won’t know they qualify.

Need a new Tax Professional ?
👉🏾 Schedule a tax consultation with ELITE TAX
We’ll make sure you’re claiming every deduction you’re entitled to—accurately and strategically.

It's that time again sooooo
Here are some key points to consider:
- If you're seeking tax preparation services for a mere $100...
- If you believe tax work is simply inputting data...
- If you're interested in creating fraudulent tax returns...
- If you're in search of someone with access to children's SSNs for use on your return...
-if you are looking for someone to apply credits that you aren't qualified for
-if you are married and sleeping with your spouse every night and trying to claim head of household....
⚠️ Please be advised, my office is not suitable for your needs.
Conversely:
- If your goal is to maximize your tax return...
- If you desire guidance on reducing your tax liability...
- If you're ready to invest a reasonable sum for expert knowledge in tax law and leverage it for your benefit...
✅ You are the ideal client for my services.
Remember, I invest in extensive and expensive training classes and Conferences to provide top-notch service. It's completely fine if you don't fit the client profile I'm looking for.
A heartfelt thanks to all my loyal clients! ☺
And a warm welcome to my new clients! 🤗

This post is for all my side-hustlers sharing time with their 9-to-5s! ↓

Taxes get a lot more complex when you have to account for 1099 income along with your regular paycheck.

When all you have are W-2 wages, your taxes are relatively simple to prepare (and you might even be able to do them yourself).

But when you have 1099 income, you need additional documentation of all of your business income + expenses.

Your W-2 income will show up on the first page of your personal income tax return, but when you have 1099 income, you'll usually need to add a Schedule C and Schedule SE too.

If this is you, I strongly recommend working with a tax professional to ensure everything is accurately accounted for!

A few types of 1099s you might be filing (or receiving) soon:

→ 1099-NEC: For payments to non-employees (independent contractors) whom you paid $600 or more for services for your business. You could also *receive* these for services you provided!

→ 1099-MISC: For miscellaneous payments, like rent, royalties, and certain legal fees.

→ 1099-INT: Something you'll receive from your bank or financial institution if you earned more than $10 in interest.

→ 1099-K: Reports payments processed by third-party apps like Stripe or PayPal.

A little poem from yours truly!

Santa isn't the only one who should be making a list (and checking it twice) this December! 🎅

It's time to start making your 1099-NEC list of any non-employees (independent contractors) you paid $600 or more to this year.

Here's what you'll want to include:

→ The names of all contractors you paid $600 or more for their services.

→ Signed W-9s from each contractor.

→ The total paid to each contractor in 2025.

Not feeling confident filing your own 1099s? Shoot me a message, and I'll help you out!

🙏 I've been a good professional all year, so all I'm asking for is:

🎁 IRS clarification on tax law changes that are *actually* helpful

🎁 Business Owners who want my help saving money on taxes

🎁 Clients who don't wait until the day before the deadline to ask how much they owe

🎁 Peace on Earth + accurate mileage logs for us all

Sincerely,Carmen Fagin, EA🤭