ATX Solution INC

I was invited by QEDC to make a speech at the government's office, Educating small business owner with tax related topics. www.atxsolution.com

I’ve made a significant investment in advanced tax law education and am now a certified Main Street "Master Tax Advisor". This training has allowed me to offer more personalized tax saving strategies-tax planning—focused current & long-term tax savings and wealth building for clients. if you know some one who need help with taxes, feel free to share my information.

Walking down south to see Christmas scene at Hudson Yard.

Many taxpayers focus only on filing their returns, but meaningful tax savings come from planning in advance, not after the year has already ended.

In my recent consultations, I worked with many small business clients to identify strategies that resulted in an estimated tax savings of $10,000–$30,000 through legal and well-documented planning methods. During the consultation, I walked the client through the calculations so they could clearly see where the savings came from and how the strategy would be implemented.

To put this into perspective, saving $10,000 in taxes each year adds up to $50,000 over five years, and saving $20,000 per year results in $100,000 in savings over five years. These are funds that can be reinvested into your business, retirement, or other long-term financial goals.

I can do the same for you. I will review your income structure, business activity (if applicable), and available deductions, then lay out the calculations so you can see exactly how much you could save by using a customized tax-planning strategy. These tax plannings are highly personalized—For you individual tax situation .

A tax consultation gives you the opportunity to:

Identify missed deductions and credits

Structure income more efficiently

Reduce current and future tax liabilities

Ensure compliance while maximizing savings

If you are interested in scheduling a consultation, contact me, and I will be happy to coordinate next steps.

I look forward to helping you reduce your tax and plan more effectively.

Trump’s ‘Big Beautiful Bill’: no taxes on overtime pay or tips.

What the Big Beautiful Bill Actually Does

1. New Federal Tax Deduction for Tips
Workers can take a tax deduction for qualified tip income up to $25,000 per year. Qualified tips are those that are: Voluntary
Paid by customers Reported to the employer or on IRS forms (W-2, 1099, etc.)
This deduction reduces federal taxable income, but tips are still technically earned income.

Important differentiations:
This is a deduction on your tax return — it lowers taxable income.
It does not remove the requirement to report tip income.
It does not eliminate payroll taxes (Social Security/Medicare) on tips.

2. New Federal Tax Deduction for Overtime Pay
Workers can also deduct up to $12,500 of “qualified overtime pay” (or $25,000 for married filing jointly).
Qualified overtime pay means the premium portion — i.e., the extra half-time above your regular hourly wage that you’re entitled to under the Fair Labor Standards Act.

Example:
If you normally earn $20/hr and get paid $30/hr for overtime, only the $10/hr difference is eligible for the deduction.
Again: This reduces federal taxable income.
It does not eliminate Social Security or Medicare taxes on overtime.

How It Works on Your Taxes
It’s a Deduction, Not an Exclusion
Deduction (lowers taxable income) — this is what OBBBA provides.
Exclusion from income (not included at all) — this
is not what the law does.
So even though people say “no tax on tips/overtime,” the official impact is a special deduction rather than full exclusion.

Important notes,
Overtime is not broken out anywhere on the W-2—it’s combined with regular wages.
Cash tips you did not report to your employer will not appear on the W-2 and must be reported separately on your tax return.
Your pay stub (not the W-2) is where overtime and tips are usually shown separately.

For Tax Year 2025 (filed in 2026)
Important: Form W-2 and other information returns have not been updated yet as part of this new tax law. This means:

Box 1 (Wages, tips, other compensation) will still include your total wages, tips, and overtime exactly as it always has.
There won’t be any new separate fields on the 2025 W-2 showing “qualified tips” or “qualified overtime compensation” for the new tax deductions yet. The form itself remains unchanged for 2025.

How the new deductions work,
Even though 2025’s W-2 doesn’t change:
You may still be eligible to deduct qualified tips and qualified overtime compensation on your individual tax return (subject to caps and eligibility rules) — but you’ll often need your pay stubs, employer statements, or payroll records because the W-2 won’t list them separately yet.

What will change in the future,
Starting with 2026 tax year W-2s (to be filed in 2027):

The IRS plans to update the W-2 form to include separate reporting of qualified tip income and qualified overtime compensation so employees can more easily claim the new deductions.

I’d like to share some details about New York State tax deductions. These are general deductions that may help reduce your 2025 NYS tax liability. I can’t list all available deductions here—it would be far too long—but I’m including the most common ones that most of you can benefit from.

As I’ve mentioned many times, a personalized tax consultation is designed to address your specific tax situation and can save you significantly more on your 2025 return and in future years. I understand that some of you may hesitate to pay for a consultation, but the cost is minimal compared to the tax savings it can generate. For example, I recently helped a client save an estimated $25,000 per year in taxes.

A reminder and highlight of the New York State tax deductions are as follows:

1. Many of you may have received the NYS inflation refund check, which is reportable on your federal tax return but not taxable in New York State. Please be sure to include this payment when filing your 2025 tax return.

2., NYS tax deduction For noncash contributions and donated goods, must provide and keep receipts showing all of the following: your name and address; the name and address of the qualified charity or organization; and a detailed description of the donated items acknowledged by the charitable organization, including their fair market value at the time of the donation.
Not all expenses, donations, or volunteer services given to charity qualify for a tax deduction. The organization must be an IRS-approved 501(c) nonprofit. For example, giving money directly to individuals experiencing homelessness or purchasing tickets for a fundraising dinner does not qualify as a deductible charitable contribution.

3. Casualty and theft loss deduction: For federal purposes, taxpayers are no longer allowed to deduct a casualty or theft loss unless it is the result of a federally declared disaster. For New York State purposes, For NYS these deductions can be claimed. calculation must use the smaller of: the adjusted basis in the property before the casualty or theft; and the decrease in fair market value of the property as a result of the casualty or theft. When computing the amount of the loss, you must subtract any insurance reimbursements and salvage values.

4. Job expenses and certain miscellaneous deductions: For federal purposes your client can no longer claim an itemized deduction for job expenses and certain miscellaneous deductions that were subject to the 2 percent of FAGI limitation. For New York purposes you can claim these deductions using the federal rules that applied to tax year 2017. travel, Entertainment, Gift, and Car Expenses; Business Use of Your Home (Including Use by Daycare Providers); Employee Business Expenses........

5. You can deduct the cost and upkeep of work clothes if the following two requirements are met: they must wear them as a condition of their employment; and the clothes are not suitable for everyday wear. Example: Your client is a lawyer and is required to wear a business suit every day. A business suit, including a shirt and tie, is everyday wear and is not deductible.

6. Work-related education: can deduct expenses for education, even if the education may lead to a degree, if the education meets at least one of the following two tests:, it maintains or improves skills required in the present work; and it is required by the employer or the law to keep their salary, status, or job, and the requirement serves a business purpose of their employer.

7. Losses from Ponzi-type investment schemes: These losses are deductible, as theft losses of income-producing property, on a tax return for the year the loss was discovered.
you should only claim the deductions on your tax return if you can provide required documentation for. if audited by the IRS or New York State, you will need to show detailed documentation to support the amounts claimed on the tax return.

Interested in schedule a personalized consultation, contact [email protected]

🏢 Business & Self-Employment Updates (Tax-Saving Opportunities Included)
1. For Contractors Receiving Form 1099-NEC
If you receive a 1099-NEC, you are considered self-employed.
This means you may qualify for:

Business deductions

Home office deduction

Vehicle expense deductions

Retirement plan contributions (SEP-IRA, Solo 401(k))
All of these can help reduce your taxable income.

2. Section 179 – Up to 100% Deduction
Businesses may deduct up to 100% of qualifying equipment, vehicles, and software in the year purchased—allowing significant immediate tax savings.

3. 20% Qualified Business Income (QBI) Deduction
Eligible pass-through businesses (sole proprietors, LLCs, partnerships, S-corps) may deduct up to 20% of qualified business income, subject to income thresholds.

4. Section 274(o) – Student Loan Relief
Business owners who are also employees of their own company may receive student loan payment support from the business, within allowable limits.

5. Proposed Corporate Tax Rate Cap
A proposal seeks to establish a maximum corporate tax rate for certain business sizes, aiming to create predictability for tax planning (still under review).

6. BOI Filing Requirements (Corporate Transparency Act)
New mandatory Beneficial Ownership Information (BOI) reporting applies to: LLCs, Corporations, Most small entities
This is required in addition to tax filings; penalties apply for non-compliance.

7. Required Electronic Filing
More businesses must now e-file W-2s, 1099s, and certain tax returns due to updated IRS thresholds.

📢 Individual Tax Updates & Potential Tax-Saving Opportunities:

1. Proposed Middle-Income Tax Relief
There are ongoing discussions about reducing the tax burden for middle-income households. While not final, the goal of these proposals is to increase take-home income for working individuals and families.

2. Car Loan Interest Deduction Proposal (Up to $10,000)
A proposal would allow taxpayers to deduct up to $10,000 of car loan interest on qualifying personal vehicles—potentially a meaningful tax-saving opportunity once finalized.

3. Tip Income Tax Exemption Proposal (First $25,000)
A proposal would exempt up to $25,000 of tip income from federal income tax.
Phaseout: begins at $150,000 for single filers.

4. Overtime Income Tax Exemption Proposal (First $25,000)
Another proposal would exempt up to $25,000 of overtime wages from federal tax.
Phaseout: begins at $150,000 for single filers.

5. TCJA Scheduled Changes & Extension Proposal
The Tax Cuts and Jobs Act (TCJA) individual tax cuts are scheduled to expire soon.
If not extended:

Tax rates will increase for most brackets.

Standard deduction will decrease.

Child tax credit will revert to lower levels.

There is a proposal to extend the TCJA, which would keep current lower rates in place.

6. Inflation Adjustments for 2025–2026 (Confirmed by IRS)
The IRS has announced inflation adjustments that may help your tax planning:

Standard Deduction Increase

Higher Retirement Contribution Limits (401(k), IRA, SIMPLE, etc.)

Higher HSA and FSA contribution limits
These increases allow taxpayers to place more money in tax-advantaged accounts.

7. Energy & EV Tax Credits (Current Law)
Credits remain available for:

Energy-efficient home upgrades

Electric vehicles

Battery storage systems
These can significantly reduce your tax liability if you qualify.

🏛 IRS & Federal Administrative Updates
IRS Technology Budget Adjustment
A reported $2 billion reduction to the IRS technology budget was made without interrupting IRS operations, based on available reports.

Improved IRS Processing & Digital Services
More forms now allow e-filing.

Additional IRS notices can be delivered digitally.

Processing times for amended returns have gradually improved.

IRS Interest Rate Updates
IRS underpayment and overpayment interest rates have been updated according to market changes—important for payment plans, refunds, and estimated payments.

As we approach year-end, this is an excellent time to:

Review withholding

Maximize retirement contributions

Evaluate business deductions

Confirm estimated tax payments

Plan ahead for new rules beginning in 2025–2026

📢 Individual Tax Updates & Potential Tax-Saving Opportunities:

1. Proposed Middle-Income Tax Relief
There are ongoing discussions about reducing the tax burden for middle-income households. While not final, the goal of these proposals is to increase take-home income for working individuals and families.

2. Car Loan Interest Deduction Proposal (Up to $10,000)
A proposal would allow taxpayers to deduct up to $10,000 of car loan interest on qualifying personal vehicles—potentially a meaningful tax-saving opportunity once finalized.

3. Tip Income Tax Exemption Proposal (First $25,000)
A proposal would exempt up to $25,000 of tip income from federal income tax.
Phaseout: begins at $150,000 for single filers.

4. Overtime Income Tax Exemption Proposal (First $25,000)
Another proposal would exempt up to $25,000 of overtime wages from federal tax.
Phaseout: begins at $150,000 for single filers.

5. TCJA Scheduled Changes & Extension Proposal
The Tax Cuts and Jobs Act (TCJA) individual tax cuts are scheduled to expire soon.
If not extended:

Tax rates will increase for most brackets.

Standard deduction will decrease.

Child tax credit will revert to lower levels.

There is a proposal to extend the TCJA, which would keep current lower rates in place.

6. Inflation Adjustments for 2025–2026 (Confirmed by IRS)
The IRS has announced inflation adjustments that may help your tax planning:

Standard Deduction Increase

Higher Retirement Contribution Limits (401(k), IRA, SIMPLE, etc.)

Higher HSA and FSA contribution limits
These increases allow taxpayers to place more money in tax-advantaged accounts.

7. Energy & EV Tax Credits (Current Law)
Credits remain available for:

Energy-efficient home upgrades

Electric vehicles

Battery storage systems
These can significantly reduce your tax liability if you qualify.

🏛 IRS & Federal Administrative Updates
IRS Technology Budget Adjustment
A reported $2 billion reduction to the IRS technology budget was made without interrupting IRS operations, based on available reports.

Improved IRS Processing & Digital Services
More forms now allow e-filing.

Additional IRS notices can be delivered digitally.

Processing times for amended returns have gradually improved.

IRS Interest Rate Updates
IRS underpayment and overpayment interest rates have been updated according to market changes—important for payment plans, refunds, and estimated payments.

🏢 Business & Self-Employment Updates (Tax-Saving Opportunities Included)
1. For Contractors Receiving Form 1099-NEC
If you receive a 1099-NEC, you are considered self-employed.
This means you may qualify for:

Business deductions

Home office deduction

Vehicle expense deductions

Retirement plan contributions (SEP-IRA, Solo 401(k))
All of these can help reduce your taxable income.

2. Section 179 – Up to 100% Deduction
Businesses may deduct up to 100% of qualifying equipment, vehicles, and software in the year purchased—allowing significant immediate tax savings.

3. 20% Qualified Business Income (QBI) Deduction
Eligible pass-through businesses (sole proprietors, LLCs, partnerships, S-corps) may deduct up to 20% of qualified business income, subject to income thresholds.

4. Section 274(o) – Student Loan Relief
Business owners who are also employees of their own company may receive student loan payment support from the business, within allowable limits.

5. Proposed Corporate Tax Rate Cap
A proposal seeks to establish a maximum corporate tax rate for certain business sizes, aiming to create predictability for tax planning (still under review).

6. BOI Filing Requirements (Corporate Transparency Act)
New mandatory Beneficial Ownership Information (BOI) reporting applies to: LLCs, Corporations, Most small entities
This is required in addition to tax filings; penalties apply for non-compliance.

7. Required Electronic Filing
More businesses must now e-file W-2s, 1099s, and certain tax returns due to updated IRS thresholds.

As we approach year-end, this is an excellent time to:

Review withholding

Maximize retirement contributions

Evaluate business deductions

Confirm estimated tax payments

Plan ahead for new rules beginning in 2025–2026