July 28, 2025

Big Beautiful Individual Tax Cuts by the One Big Beautiful Bill Part 2

Big Beautiful Individual Tax Cuts by the One Big Beautiful Bill Part 2
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Season 2

Tax Talk 4 U Big Beautiful Individual Tax Cuts by the One Big Beautiful Bill makes the 2017 tax changes permanent, also Tax deduction on auto loan interest, increase standard deduction $31,500 for joint filers. The senior deduction is an exemption for filers 65 and older allows seniors to claim an additional $6,000. Charitable deductions allows non-itemizers to deduct up to $1,000 (single filers) or $2,000 (married couples) for cash contributions to qualified charities, starting in 2026.

Tax Talk 4 U is broadcast live Mondays at 10AM ET and Music on W4CY Radio (www.w4cy.com) part of Talk 4 Radio (www.talk4radio.com) on the Talk 4 Media Network (www.talk4media.com). Tax Talk 4 U is viewed on Talk 4 TV (www.talk4tv.com).

Tax Talk 4 U Podcast is also available on Talk 4 Media (www.talk4media.com), Talk 4 Podcasting (www.talk4podcasting.com), iHeartRadio, Amazon Music, Pandora, Spotify, Audible, and over 100 other podcast outlets.

Become a supporter of this podcast: https://www.spreaker.com/podcast/tax-talk-4-u--6333550/support.

WEBVTT

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The topics and opinions express in the following show are

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solely those of the hosts and their guests and not

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those of w FOCY Radio. It's employees are affiliates. We

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make no recommendations or endorsements for radio show programs, services,

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or products mentioned on air or on our web. No

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liability explicit or implies shall be extended to W FOURCY

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Radio or it's employees are affiliates. Any questions or comments

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should be directed to those show hosts. Thank you for

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choosing W FOURCY Radio.

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Barry G.

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Fowler EA brings you tax talk for you right here

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on W four CY Radio and talk for TV. As

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an enrolled agent and a national leader in tax resolution

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as well as Trucker bookkeeping and tax planning. With over

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thirty years of experience, Barry will break down taxes, bookkeeping,

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tax planning, and tax relief for individuals and businesses just

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like you. So let's have some tax talk for you

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with your hosts.

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Barry G.

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Foul Hey, good morning, it's a wonderful Monday morning. I'm

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always glad to be here talking taxes, of course, bookkeeping,

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and of course see a great reach out to all

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of our fabulous friends that are in the trucking business

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and our clients that are listening to the show as well.

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You know, today's one of those days where you come

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in to the office, have things you have plan that

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need to get done. Things you need to do first

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thing in the morning, to get up early and get

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to the office early so that we does and done.

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And guess what, always running behind. And I mean, you know,

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that's just the way life goes here in the trucking industry.

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You know, you get dispatched to a job and then

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you sit and wait for them to load the truck

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and get to the places you be as soon as

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you need to be there, because you're always depending on

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somebody else. In this case, this is purely dependent on me.

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And we go through and take the time and get

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prepped for the show.

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Man.

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I'd love to have questions today because questions would make

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my life a lot easier in doing this show. And

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so we always enjoyed the questions. So if you've got

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questions that suggests, let's get them in here. We're talking

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again about that one big beautiful film. You know, people

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ask me, you know, hey, can you summarize this really

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simple and really easy? Yeah, it's a lifesaver. It prevented

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going back to the tax Code of two prior to

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twenty seventeen. It continues the Trump tax cuts, which was

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great for every American across the board, and especially you know,

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the middle class and those a little bit lower income

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because it provided a lot of benefit. And you know,

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people have said to me, hey, this bill only benefits

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the rich. Well, you're listening to talking point, you know,

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you're not looking at what was actually this one big,

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beautiful bill. You know, Trump signed this into law to

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live forth and it made permanent the Tax Cuts Jobs

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Act of I think it was twenty seventeen, and then

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it introduced a lot of new provisions. If you think

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about it, you know, they put in there the higher

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standard deduction, It increased child tax credits. Now, you know,

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if you think about the rich, you know what was

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important to them is something that Democrats were fighting for,

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and that was because they're in states that have higher

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property and state income taxes. They were trying everything they

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could to increase the state and local tax deduction. When

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you itemize. Now most people are not itemizing. You know, yes,

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if you got a new mortgage, your mortgage interest is

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a lot higher, and then you know, with mortgage interest

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being higher, then you know you might be able to

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get over that new standard you know deduction. And you know,

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getting over that standard deduction sometimes gets harder because you know,

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the standard deduction now if you're married finally joined, is

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thirty one thousand, five hundred with this new tax law.

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So think about that. In order to be idable to

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itemize your state taxes, your local taxes, your mortgage interest

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all has to be greater than thirty one thousand, five

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hundred add in their charge of terrible contributions. So this

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law didn't necessarily wasn't out there to help the wretch

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because they've got to be able to itemize, so they

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have some limitations in what you can take on state

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and local taxes. It was ten thousand, and it's moved

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up to you know, forty thousand, So that means you've

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got to be paying a lot of mortgage interest, a

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lot of pay and a lot of property tax at

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state and local taxes just to be able to get

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to the point of itemizing. And not to say that

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you know, average Americans can't itemize. It becomes a lot

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harder to itemize because you've got to get over that

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standard deduction now be there, So you know, that's really

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the crux of this, so you've got to really think

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about it. Hey, it's great, Riley, thanks for asking the questions.

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Why do they keep changing our taxes and why do

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we even have to pay so much in taxes? Well,

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first off, they keep changing the tax code all the time.

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They think it's a lot of times to benefit people,

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and it's really to benefit the government. You know, realistically,

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if the tax code was as simple as it was

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back when they originally created it, and I think it

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was back in twenty nineteen seventeen, you know, paying only

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one to three percent and everybody would think that would

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be great today. Those would be ideal rates and if

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they never changed it from that, it would be fantastic today.

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But the government has gotten into I'm getting on my

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soapbox here, so hey, I'm gonna say it like it is.

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Government's got into catering to its constituents. So how do

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they keep getting elected? I keep giving money, doing projects,

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doing things that benefit you or I to get us

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to vote for a particular person or party. If the

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government would just step back and do what's in the constitution,

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then maybe our taxes could be a lot lower. If

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you want to know what's in the constitution, pick up

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a copy of the constitution or read it. Back in

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the days, it used to be church and family that

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you rely on to help one another. Today we place

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a lot more reliance to help on our government. Who

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am I to say what's right and wrong. Everybody has

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their different beliefs, but I'm going to tell this. If

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we relied on church and family and not the government,

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then government isn't that important. Government provides the structure, family

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provides that helping hand. So hey, maybe my soapboxer today

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and maybe we'll get more in my where I can preach.

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We got another question here from Ralph. It seems like

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they tax are paid before we make it, after we

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make it, and again after that. You know, it's taxes, taxes, taxes, Ralph,

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You're absolutely right. You know they've got security tax which

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never was meant to be this high of a rate,

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was never meant to be your sole retirement. It was

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meant to be the safety net, but they turned it

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in to what everybody thinks should be the retirement instead

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of the safety net. And then they tax you your

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federal income town.

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Now.

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I don't know how old you are, Ralph, but if

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you remember, way back into the eighties, tax rates were

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much higher. Tax rates have continued to go down. It

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started with the and Revolution and Reaganomics and lowering the

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tax rates and bringing down the highest tax rates and

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bringing down the lower tax rates. But it came in

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with a lot more spending and deficits. And the more

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spending we have and the more deficits we have, the

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more money the government needs from you and I. The

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government doesn't operate like a business. Oh here we go,

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so box again. The government operates like money is free.

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Money isn't free. It comes from you and I. And

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it doesn't just count the federal government. It counts state governments,

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It counts local governments, counts even here in Texas, school

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districts is a little government in its own And they

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tax you. So again. You had your Social Security, you

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had your Medicare, you have your federal income tax. If

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you live in a state with state incomes, you get

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state income tech. And then they get you with sales

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tax on everything you buy. Of course, some goods are

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exempt foods, necessities, but sales taxing nonetheless. And then that

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isn't bad enough. They hit you with property taxes, and

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so you own your property, but to kind of continue

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paying the government to have your property seems like a

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never ending battle. And it doesn't end. If you put

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money into an IRA or four oh one K, and

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it's not rough. They tax you when you withdraw it.

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If you bring it take the money out before you're

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fifty nine and a half, they tax you with a

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penalty for early withdrawal. So yes, it's taxes, taxes, taxes.

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I mean, if you ever wanted to hear it, there's

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only two things certain in life, death and taxes. And

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even when you die you might be subject to inherit

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a tax if you own enough property or have enough assets.

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But it gets harder. Hey, we're going to keep talking

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about the one big, beautiful bill and answering your questions

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right after this.

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We have only scratched the surface of today's Please stand

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by as Barry G. Fowler will be right back with

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tax stock for you. If you own the IRS or

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are going through an IRS audit, don't go at it alone.

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Call Taxation Solutions tax.

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Relief at eight eight eight nine three zero one zero

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one six.

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We are your solution.

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For irs, TETs, audits, back taxes, garnishments, leans and levees.

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Whether you're an individual or business, you need a solution

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and a strong, aggressive tax resolution. Don't let the IRS

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walk all over you. Stop the IRS now call eight

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eight eight nine three zero one zero one six or

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go to Taxationsolutions dot net now for a free no

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obligation consultation.

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Let's get back to tax stock for you.

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With more tax talk and once again here's your host,

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Barry G.

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Fallon.

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Hey, welcome back. You know, one big beautiful Bill. I

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really enjoyed the new tax code and keeping the original

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tax code that we've been operating under Trump's at least

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this time they've put it in and made it permanent.

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They'll make changes and they'll tweak things, but there's a

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lot of beautiful things that are been in this bill. Now,

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if you're looking for some of the stuff like you know,

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the senior deduction, over time, no tax on tips, these things.

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We have the One Big Beautiful Bill podcast we did.

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It's a couple of weeks ago. You can go to

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tax TALKFORU dot com see our podcast there, go to

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iHeart Spotify wherever you may be listening to your podcasts,

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and you can see and listen to our podcasts on

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the One Big Beautiful Bill. What we're trying to do

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is cover the things that maybe we didn't give much

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coverage to last time, and continuing to answer the questions

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that you have about this One Big Beautiful Bill. So

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maybe we can simplify it. You know, if you really

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enjoy some light reading, you know, you can pick up

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a copy of the One Big Beautiful Bill and read

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all almost nine hundred pages of it, or you can

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listen to tax Talk for you. We get to summarize

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things for you, clarify things for you, and make your

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life a little bit simpler. But if you like sleep,

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read the bill. Hey, we read through the whole bill.

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We pulled out the things that are important tax wise

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for you. We got through the riff raff ay. One

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of these days we'll talk about all the fluff that

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they put in this bill, because you know, there isn't

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a single bill out here that doesn't have fluff, waste

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of money or waste of time. They could have made

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it really much, but they've got to do things that

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cater to you I and others. Crosser. They did do

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an enhancement of the Dependent Care Assistance contributions. So, beginning

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in twenty twenty six, Section one twenty nine A to

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A increases the annual contribution limits for employer provided Dependent

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Care Assistant program Hey, we put the initials in there

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for short dcaps and it is commonly referred to as

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a dependent care flexible spending arrangements. So those fssays. The

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new limits starting in twenty twenty six is seventy five

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hundred per year thirty three thousand, seven hundred and fifty

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for married individuals filing separately, and that goes up from

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the current level of five thousand, So the next year

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you're going to see this new limit of seventy five hundred.

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This Dependent Care Assistant programs allows employees to set aside

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pre tax income for qualifying dependent care expenses such as daycare,

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preschool UH, and certain adult care as well, and then

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the contributions are excluded from gross income producing your federal

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income tax, Social Security and Medicare taxes. So that's a

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pretty nice part. You know, those increased limits are going

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to help families with higher annual childcare costs, allowing greater

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tax UH preferred deferrals and with the cost of daycare

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these days, you need every help, every bit of help

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you can get. I looked at what my son and

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daughter in law, we're paying for their first child in daycare.

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Oh my gosh. And you know, I know she she

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was a teacher, and she after they've had their second kid,

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she and my son made a decision that she wasn't

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going to work anymore because they just couldn't afford to

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keep both kids in daycare and her working. She was

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just working to pay for daycare, which is just incredibly

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insane what they're going to have to go through, and

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you know, would go through and pay and then what

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they'd be left over with. So it's great for them

253
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to be able to do that. You know, not everybody

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can do that, but at the cost of daycare these days,

255
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and sometimes you've got to do what you got to do.

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If if you're a tax payer and you claim the

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Child Independent Care Credit, the same expenses can't be used

258
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for the credit, and you know, the Dependent Care Assistance FSA,

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00:15:54.159 --> 00:15:56.720
you can't use the expenses on both sides, you know,

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so you've got to go through into that.

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You know.

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I got a question here from Nellie. Can you run

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through things that they put in here just to distract

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from the facts, you know, how they put things in

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to pull our attention from what is really going on.

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And we're going to leave that for another long day

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because there's a lot of things in this bill that

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I considered to be fluff, things that you know, hey,

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what they did, So let me just break this down

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real quick. What they did is they didn't just do

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a tax bill. So it wasn't just a bill that said, hey,

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we're going to do this bill and do taxes. They

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were doing one whole bill to fund the government, which

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you know, in funding the government, it becomes full of

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a little bit of fluff. And you know, senators congressmen

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need things in there because they got to be able

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to come home and say, hey, I got this road

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project or that road project you just saw that I

279
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just saw this morning online. You know, a congressman or

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center or out of Don't Betterment is out of Pennsylvania

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was just talking about one point two billion dollars set

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aside to you know, be for infrastructure in Pennsylvania. You know, hey,

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there are things that need to be done. Yes, we

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need to improve our roadways, and we need to do this.

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Sometimes we got to step back and take a look

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at what it's costing us to do these things, and

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is there a better or more effective way of doing it.

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Coming into work this morning, I saw that they were

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building a new two lane bridge, you know, to help

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the flow of traffic, and it was going to cost

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a couple hundred million dollars And I look at that

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and go, wow, is the price of concrete that high

293
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these days? Is the price of building this structure that

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expensive these days? What are we doing? You know, maybe

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we need to step back and look at the costs

296
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and how we're doing things, and maybe there's a better

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way of doing things. But you know, hey, I'm not

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into construction. I don't know what the construction costs are.

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I just know that, when you know, we were looking

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to do something add on to our house, the costs

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we're going to be absorbing it and we just couldn't

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afford to do it. Well, if your country and nation

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is in debt, maybe we got to look at better

304
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ways of doing things. And maybe one point two billion

305
00:18:23.440 --> 00:18:26.839
isn't the right answer. Maybe the right answer is finding

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a better and more effective way of getting construction done,

307
00:18:32.160 --> 00:18:36.799
and maybe there is a better route to go hey again.

308
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You know, hey, this isn't meant to be a soapbox day,

309
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but we definitely gonna look at this bill and come

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out here and tell you all the different things that

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are in this bill that kind of put the fluff

312
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in there and you know, not necessarily distraction, but more

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of how did we pay to get the votes to

314
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pass a bill that should have easily passed if you

315
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were just standing on on keeping the tax code the

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same and enhancing the tax code and making it better

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for every American that's out there. They did do an

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enhancement to five twenty nine plans starting after December thirty first,

319
00:19:17.680 --> 00:19:22.079
twenty twenty five, it's going to increase the annual limits

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00:19:22.200 --> 00:19:26.240
on distributions from five twenty nine plans from ten to

321
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twenty thousand. It also allows distributions to be used for

322
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additional educational expenses and connection with enrollment or intendance in

323
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elementary or secondary public schools, so private religious. So you know,

324
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there's some nice things that are going to be going

325
00:19:47.400 --> 00:19:52.079
in there as well. You know, this bill did some

326
00:19:52.160 --> 00:19:55.279
good enhance enhancements. Things that we saw that went away

327
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that affected you know, middle class and lower income people,

328
00:20:01.680 --> 00:20:04.000
and it had had the impacts on them. So if

329
00:20:04.039 --> 00:20:06.759
you're not itemizing those impacts, you know, it kind of

330
00:20:06.839 --> 00:20:09.720
hurt you when they took things away. So you saw

331
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a couple of years we had where you could take

332
00:20:12.039 --> 00:20:15.599
six hundred dollars as charitable contributions that went away, and

333
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you know, they didn't look at bringing any of that

334
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back until they started looking at what can they do

335
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to enhance this bill and help people make more charitable contributions.

336
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You see, if you can't deduct it, not everybody gives

337
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out of the kindness of their heart. Some people give

338
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out of the kindness of I'm going to get a

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tax deduction for it. So having a little extra incentive

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for people to give when there's natural natural disasters or

341
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just to give period is a good thing. And we're

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going to talk about how they change this bill to

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give you the incentive to make charitable contributions. Right after this, we.

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Have only scratched the surface of today's show. Please stand

345
00:20:58.160 --> 00:21:02.160
by us. Barry Chief Bower will be right back with tax.

346
00:21:01.920 --> 00:21:02.519
Talk for you.

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00:21:05.519 --> 00:21:08.640
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348
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349
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350
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351
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353
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354
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355
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356
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357
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358
00:21:44.920 --> 00:21:46.640
experts keep you trucking.

359
00:21:49.759 --> 00:21:51.680
Let's get back to tax stock for.

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You with more tax stock once again, here's your host,

361
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Barry G.

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Fallon.

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Hey, welcome back. You know we're talking about some of

364
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the key provisions affecting individuals on this tax code. We

365
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talked about you know how they change five twenty nine accounts,

366
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and now we're talking about charitable contributions. So for tax

367
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years after December thirty one, twenty twenty five, you know

368
00:22:17.200 --> 00:22:19.240
this is one they should have just made it effective

369
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this year. It would have been really nice to do.

370
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But the one big beautiful bill at reinstates and enhances

371
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Code Section one seventy p, which provided charitable contribution deductions

372
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for non itemizers So if you're taking the standard deduction

373
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of the thirty one to five as married filing joint

374
00:22:40.480 --> 00:22:44.279
you're going to get a now a permanent deduction of

375
00:22:44.359 --> 00:22:48.680
up to one thousand dollars in cash contributions for single filers,

376
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two thousand for married filing jointly. And then if you're itemizing,

377
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it's going to impose a new half a percent AGI

378
00:23:00.039 --> 00:23:03.519
lore on charitable contributions. So if you're itemizing, you've got

379
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to get over half a percent of your adjusted gross income.

380
00:23:06.400 --> 00:23:09.079
That is kind of a bad thing to put out

381
00:23:09.079 --> 00:23:12.920
there to do, especially since you're going to give marriage

382
00:23:12.920 --> 00:23:17.440
finally joint a two thousand dollars deduction. Now, you can't

383
00:23:17.519 --> 00:23:21.599
just take the deduction on your taxes unless you actually

384
00:23:21.640 --> 00:23:27.000
are contributing money, you know, church charity, and it's got

385
00:23:27.039 --> 00:23:29.759
to be a valid charity giving just to an individual.

386
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To give to an individual is not a charitable deduction.

387
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You know, they've got to have the five o' one

388
00:23:36.039 --> 00:23:39.480
C three or five oh one status out there to

389
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be able to have this deduction. Child tax credits have

390
00:23:45.839 --> 00:23:48.440
been increased to twenty two hundred per child beginning in

391
00:23:48.559 --> 00:23:53.759
twenty five, and indexes for inflation. You know, there. There

392
00:23:53.799 --> 00:23:58.240
are things in this bill that adds complications. You know,

393
00:23:58.319 --> 00:24:01.200
now they're going to come out with a deduction for

394
00:24:01.400 --> 00:24:06.880
car loan interest. Does Mike count I got this last year. No,

395
00:24:07.480 --> 00:24:10.079
it's a new deduction of up to ten thousand of

396
00:24:10.160 --> 00:24:15.960
qualified passenger vehicle loan interest. And it's interest on debt

397
00:24:16.240 --> 00:24:21.279
incurred after December thirty one, twenty twenty four, and it's

398
00:24:21.359 --> 00:24:25.200
only allowed for tax years twenty twenty five through twenty

399
00:24:25.279 --> 00:24:28.640
twenty eight, and then it has a phase out when

400
00:24:28.640 --> 00:24:32.440
you're modified a just a gross income exceeds one hundred

401
00:24:32.480 --> 00:24:36.799
thousand or two hundred thousand of married fileing joint. But no,

402
00:24:36.839 --> 00:24:39.000
if you bought your car last year in twenty twenty four,

403
00:24:39.079 --> 00:24:43.680
this doesn't count in twenty twenty five or anywhere after.

404
00:24:43.920 --> 00:24:46.799
They have some other restrictions about it being made here

405
00:24:46.880 --> 00:24:51.880
in the United States. You know, there are specifics behind

406
00:24:52.000 --> 00:24:57.720
this rule that they won out there. Interesting it's kind

407
00:24:57.720 --> 00:25:01.880
of help offset the cost of of these absorbitent interest

408
00:25:01.960 --> 00:25:05.279
rates that we see now. You know, we talk about

409
00:25:05.359 --> 00:25:08.799
interest rates and how high interest rates are back in

410
00:25:08.839 --> 00:25:14.000
the eighties, that these interest rates would seem reasonable when

411
00:25:14.000 --> 00:25:17.640
we were dealing with you know, high and absorbentent interest rates.

412
00:25:17.880 --> 00:25:22.119
Back then, it was seventies and eighties and you didn't

413
00:25:22.240 --> 00:25:27.000
have those two percent three percent mortgages that you know,

414
00:25:27.079 --> 00:25:30.559
we had the luxury of having, you know, inflation being

415
00:25:30.640 --> 00:25:34.359
under control. Right now, we're not seeing inflation going there.

416
00:25:34.400 --> 00:25:36.680
You would assume the interest rates are coming down, but

417
00:25:36.759 --> 00:25:40.960
they have yet to come down. And interest rates being

418
00:25:41.039 --> 00:25:44.680
high affects not just you and I, but also affects

419
00:25:44.680 --> 00:25:47.920
our federal government because of how much debt our federal

420
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government is in. And maybe next week we'll have a

421
00:25:51.720 --> 00:25:55.119
complete lecture about our federal debt and how much interest

422
00:25:55.160 --> 00:25:58.119
we're paying based on the amount of debt that we have,

423
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and how the government allows that much debt for our

424
00:26:03.400 --> 00:26:07.559
federal government when you and I can never be that

425
00:26:07.680 --> 00:26:11.160
overloaded with the same amount of debt that the government is. Hey,

426
00:26:11.240 --> 00:26:13.880
you know, maybe that's a fun thing for another topic.

427
00:26:14.160 --> 00:26:16.640
Let me know post comments, do you want to hear

428
00:26:16.880 --> 00:26:19.720
about our national debt and the things that we got

429
00:26:19.759 --> 00:26:24.079
going on here in this country? Health savings account enhancements

430
00:26:24.160 --> 00:26:28.880
for plans beginning after December thirty one, twenty four. That

431
00:26:29.440 --> 00:26:34.000
one big beautiful bill permanently extends the Safe Harbor providing

432
00:26:34.039 --> 00:26:37.960
that health plan will not fail to be treated as

433
00:26:38.000 --> 00:26:41.000
a high deductible plan because of not having a high

434
00:26:41.160 --> 00:26:45.960
deductible for telehealth services. So, you know, there were some

435
00:26:46.119 --> 00:26:49.480
limitations in this on these bills and being able to

436
00:26:49.680 --> 00:26:56.319
use a HSA Health Savings account because the deductible on

437
00:26:56.720 --> 00:27:01.640
telehealth wasn't considered to be high deductible. Beginning in twenty

438
00:27:01.720 --> 00:27:06.359
twenty six, this bill also is going to have individuals

439
00:27:06.400 --> 00:27:09.839
with high deductile health plans also enroll in direct primary

440
00:27:09.880 --> 00:27:13.880
care arrangements, and it allows HSA funds to be used

441
00:27:13.920 --> 00:27:16.839
to pay for dependent care services up to one hundred

442
00:27:16.880 --> 00:27:20.039
and fifty months for individuals, three hundred a month for

443
00:27:20.200 --> 00:27:25.279
family arrangements, and then for all bronze and catastrophic health

444
00:27:25.440 --> 00:27:28.960
insurance plans on the exchange to be eligible plans for

445
00:27:29.000 --> 00:27:34.119
the purpose of making HSA contributions. Yeah, try saying some

446
00:27:34.160 --> 00:27:38.920
of that stuff real quick, ten times over. You know,

447
00:27:39.119 --> 00:27:42.599
it's some of the things are kind of crazy out there,

448
00:27:44.240 --> 00:27:48.400
you know, some of the things they threw into this bill.

449
00:27:48.720 --> 00:27:52.400
Hey gamblers, you know, let's talk about gambling. You know,

450
00:27:52.519 --> 00:27:56.079
you got gambling winnings. I want to direct my gambling losses,

451
00:27:56.440 --> 00:28:00.519
you know, beginning in twenty twenty six, One Big Beautiful

452
00:28:00.559 --> 00:28:05.680
Bill further limits the term losses for wagering transactions Code

453
00:28:05.720 --> 00:28:09.680
Section one sixty five ninety percent of the amount of

454
00:28:09.680 --> 00:28:13.519
such losses. Any deduction for gambling losses remains limited to

455
00:28:13.559 --> 00:28:17.839
the amount of gambling innings and still got to itemize.

456
00:28:19.279 --> 00:28:24.039
You know, this bill is one big beautiful bill. You know,

457
00:28:24.160 --> 00:28:27.200
a lot of pages, a lot of things, a lot

458
00:28:27.240 --> 00:28:31.079
of changes that are out there. You know, it's going

459
00:28:31.160 --> 00:28:36.119
to have some inflation adjustments as we go. The qube

460
00:28:36.680 --> 00:28:42.160
QB B B A. I always laugh when I see

461
00:28:42.160 --> 00:28:48.480
this in the abbreviations for you know, notes or things

462
00:28:48.480 --> 00:28:54.279
that we're taking, and you know, it's a pretty long abbreviation.

463
00:28:54.480 --> 00:29:02.279
One Big Beautiful Bill Act makes also those TCJA Trump

464
00:29:02.359 --> 00:29:08.119
tax cuts individual rates permanent and provides for extra year

465
00:29:08.240 --> 00:29:12.039
of inflation adjustments for the ten, twelve, and twenty two

466
00:29:12.039 --> 00:29:16.240
percent brackets. Hey, that's nice. It's given you those adjustments,

467
00:29:16.279 --> 00:29:18.400
and those are the lowest brackets that are out there.

468
00:29:19.799 --> 00:29:24.640
It also enhanced the standard deduction and it makes it

469
00:29:24.680 --> 00:29:27.680
permanent and further enhances by increasing the amount for twenty

470
00:29:27.720 --> 00:29:30.599
twenty five. Just like we talked about. You know, you're

471
00:29:30.599 --> 00:29:33.799
going from fifteen thousand or going to fifteen thousand seven

472
00:29:33.799 --> 00:29:36.799
to fifty for single filers, twenty three thousand, six twenty

473
00:29:36.839 --> 00:29:40.359
five for heads household, and thirty one thousand file five

474
00:29:40.440 --> 00:29:43.000
hundred for married and filing jointly. So it was an

475
00:29:43.000 --> 00:29:46.240
across the board increase of five percent, and that's going

476
00:29:46.279 --> 00:29:50.000
to be the new base for inflation indexing after twenty

477
00:29:50.039 --> 00:29:50.599
twenty five.

478
00:29:51.000 --> 00:29:51.240
You know.

479
00:29:51.440 --> 00:29:54.880
So there's a lot of things that we can go

480
00:29:54.960 --> 00:29:57.759
through and do and is going to make your life

481
00:29:57.920 --> 00:30:01.880
a little bit better, a little bit easier to use

482
00:30:02.000 --> 00:30:06.680
this bill out there. You know, we've been talking about individuals,

483
00:30:06.680 --> 00:30:10.039
and we've been talking about the things that you know

484
00:30:10.119 --> 00:30:12.720
helped you. We're going to go back and talk about

485
00:30:13.000 --> 00:30:16.400
no tax on overtime. We're going to talk about the

486
00:30:16.480 --> 00:30:22.880
senior deduction and no tax on tips a little bit more.

487
00:30:23.119 --> 00:30:24.279
We come right back after that.

488
00:30:25.400 --> 00:30:29.079
We have only scratched the surface of today's show. Please

489
00:30:29.119 --> 00:30:32.599
stand by as Barry G. Fowler will be right back with.

490
00:30:32.839 --> 00:30:33.920
Tax talk for you.

491
00:30:36.599 --> 00:30:39.960
As an owner operator, you already spend too much time

492
00:30:40.000 --> 00:30:44.160
away from your family. Stop spending time doing paperwork. Go

493
00:30:44.279 --> 00:30:48.559
to Trucker tax tools dot Com, a solution built specifically

494
00:30:48.599 --> 00:30:52.200
for truckers. Trucker tax Tools dot Com makes your life

495
00:30:52.559 --> 00:30:58.319
run smoothly. Let's get back to tax stock for you

496
00:30:58.400 --> 00:31:00.960
with more tax stock once again.

497
00:31:01.440 --> 00:31:06.000
Here's your host, Barry G. Fallum.

498
00:31:06.279 --> 00:31:10.880
Hey, welcome back. I got the question here from chet.

499
00:31:11.200 --> 00:31:14.200
I'm an owner operator and over the road. What does

500
00:31:14.240 --> 00:31:16.640
this bill do for me? Hey, I'll tell you what.

501
00:31:17.839 --> 00:31:20.400
Get on your CV radio and hey, tell your friends

502
00:31:20.519 --> 00:31:23.519
tune in right now to Tax Talk for you. I'm

503
00:31:23.519 --> 00:31:25.880
going to give you about two or three minutes to

504
00:31:26.559 --> 00:31:28.640
message all your friends out there because we're going to

505
00:31:28.640 --> 00:31:31.640
talk about some of the bill that we have out

506
00:31:31.680 --> 00:31:35.240
here for trucking that's in this one big, beautiful bill.

507
00:31:35.279 --> 00:31:37.440
A matter of fact, it helps all business across the board.

508
00:31:37.799 --> 00:31:41.119
I'm going to address really quick, no tax on tips,

509
00:31:41.559 --> 00:31:44.640
no tax on overtime, and social Security, and then we're

510
00:31:44.640 --> 00:31:47.039
going to talk about trucking. So you got time to

511
00:31:47.079 --> 00:31:49.480
get your friends to listen to us. Go to Tax

512
00:31:49.519 --> 00:31:52.119
Talk for you or W four CY radio.

513
00:31:52.599 --> 00:31:52.839
Hey.

514
00:31:53.440 --> 00:31:58.000
Deduction for tipp income. This bill created an above the

515
00:31:58.039 --> 00:32:01.160
line deduction of up to twenty five and for qualified

516
00:32:01.200 --> 00:32:05.960
tips received by an individual occupation which is customarily and

517
00:32:06.200 --> 00:32:10.880
regularly received tips. You know it does have some phase

518
00:32:10.920 --> 00:32:14.599
outs out here, and this no tax on tips is

519
00:32:14.640 --> 00:32:17.519
not permanent. It goes from twenty five through twenty eight.

520
00:32:17.559 --> 00:32:20.960
If it works really well, I can see them making

521
00:32:21.000 --> 00:32:25.240
this permanent or extending this, and then you're subject to

522
00:32:25.279 --> 00:32:29.079
some minified adjusted gross income levels anything above one hundred

523
00:32:29.079 --> 00:32:32.480
and fifty thousand or three hundred thousand. In joint no

524
00:32:32.720 --> 00:32:36.720
tax on overtime. Again, this is only from twenty five

525
00:32:36.799 --> 00:32:39.359
to twenty eight, and it creates an above the line

526
00:32:39.400 --> 00:32:42.680
deduction for up to twelve thousand to five hundred or

527
00:32:42.759 --> 00:32:45.799
twenty five thousand in the case of a joint filing.

528
00:32:46.319 --> 00:32:51.720
Qualified overtime compensation is defined as what's paid to an

529
00:32:51.759 --> 00:32:56.319
individual under section seven of the Federal State Fair Labor

530
00:32:56.480 --> 00:33:01.920
State Standards Act fls A. And then you've got your

531
00:33:01.960 --> 00:33:06.759
phase outs as well over there, and another temporary deduction

532
00:33:07.559 --> 00:33:11.880
is a deduction for individuals that have attained the age

533
00:33:11.920 --> 00:33:14.440
of sixty five before the end of the tax year.

534
00:33:14.960 --> 00:33:19.599
The deduction amount is six thousand per individual. The senior

535
00:33:19.640 --> 00:33:23.240
deduction begins phase out once it's over seventy five thousand

536
00:33:23.400 --> 00:33:26.799
or one hundred and fifty thousand period. Finally, joint and

537
00:33:26.839 --> 00:33:29.839
again it's phased out after twenty twenty five to twenty

538
00:33:29.960 --> 00:33:34.480
twenty eight. So if you're a senior, that's technically no

539
00:33:34.640 --> 00:33:38.240
tax on Social Security, no tax, and then no tax

540
00:33:38.319 --> 00:33:43.200
on overtime and no tax on tips. Remember this phase

541
00:33:43.240 --> 00:33:48.359
out after twenty twenty eight. Maybe they'll come back and

542
00:33:48.400 --> 00:33:53.240
make it permanent. Truckers, business owners, the bill was chalked

543
00:33:53.400 --> 00:33:56.880
full of things to help you business.

544
00:33:57.200 --> 00:33:57.359
Now.

545
00:33:57.400 --> 00:33:59.720
I hope you get on your CV radio. I hope

546
00:33:59.759 --> 00:34:02.039
you maybe you got on the phones and text message

547
00:34:02.079 --> 00:34:04.400
your friends, and I hope a lot of you went

548
00:34:04.440 --> 00:34:07.319
over to Tax Talk for You and hit that as

549
00:34:07.359 --> 00:34:09.840
one of your favorites, or go over to the Facebook

550
00:34:09.920 --> 00:34:14.400
page truck tax Tools Facebook page, Taxation Solutions, tax Relief

551
00:34:14.800 --> 00:34:18.159
Facebook page, or you know again, tax Talk for You

552
00:34:18.599 --> 00:34:20.920
and tax Talk for You, and that's the number four,

553
00:34:21.480 --> 00:34:26.679
and the letter you dot com Tax Talk the number four,

554
00:34:27.360 --> 00:34:32.000
and then you just the letter you dot com and

555
00:34:32.079 --> 00:34:33.679
you can hear this, and then you can go and

556
00:34:33.719 --> 00:34:36.800
get our podcasts and tell people, hey, we talked about

557
00:34:36.800 --> 00:34:40.559
what kind of savings we've got for business owners and truckers.

558
00:34:41.000 --> 00:34:46.840
They expanded the qualified Business Income deduction and made it

559
00:34:47.079 --> 00:34:51.960
permanent the current twenty percent rate increases the deduction limit

560
00:34:52.199 --> 00:34:55.440
phase in range from fifty to seventy five for none

561
00:34:55.559 --> 00:34:58.320
joint returns and a one hundred to one hundred and fifty.

562
00:34:58.719 --> 00:35:05.119
In addition, the act introduces a new inflation adjusted minimum

563
00:35:05.440 --> 00:35:10.280
deduction for taxpayers who have at least one thousand of

564
00:35:10.400 --> 00:35:15.880
qualified business income from one or more active trades or

565
00:35:15.960 --> 00:35:21.199
businesses in which the taxpayer materially participates. Hey, if you're

566
00:35:21.239 --> 00:35:24.639
an over the road trucker, you're participating in your business.

567
00:35:25.079 --> 00:35:29.079
If you've got QBI, you then have a minimum of

568
00:35:29.679 --> 00:35:31.920
four hundred dollars you're going to be able to take

569
00:35:32.440 --> 00:35:37.280
or being in business. Now, you also, in this bill

570
00:35:37.800 --> 00:35:43.199
permanently extended the additional first year depreciation deduction, and the

571
00:35:43.280 --> 00:35:47.599
allowance has now been increased to one hundred percent for

572
00:35:47.719 --> 00:35:53.679
property acquired or placed in service on or after January nineteenth,

573
00:35:53.840 --> 00:35:59.000
twenty twenty five. Now, if you've bought your truck January tenth,

574
00:35:59.360 --> 00:36:03.440
put it in service in January before January nineteenth, that's

575
00:36:03.480 --> 00:36:05.440
what you don't get the one hundred percent deduction. You've

576
00:36:05.440 --> 00:36:10.199
fallen under the old bonus depreciation rules. But if you

577
00:36:10.199 --> 00:36:12.800
didn't put it in service until after then, then you

578
00:36:12.840 --> 00:36:16.920
can possibly take bonus appreciation. Now, I also warn you

579
00:36:17.159 --> 00:36:20.760
don't count on one hundred percent depreciation because sometimes that

580
00:36:20.880 --> 00:36:23.800
isn't the best benefit for me. A lot of times

581
00:36:23.840 --> 00:36:26.880
I hear from people that told me, you know, hey,

582
00:36:26.920 --> 00:36:29.360
I talking to somebody else and they took a hundred

583
00:36:29.360 --> 00:36:33.519
percent depreciation they paid zero tax. If you paid zero tax,

584
00:36:34.000 --> 00:36:38.079
then you possibly wasted depreciation that was on income that

585
00:36:38.199 --> 00:36:41.559
was taxed at ten percent or lower. And maybe your

586
00:36:41.639 --> 00:36:44.480
business is going to be such that you could use

587
00:36:44.840 --> 00:36:48.920
more deductions in the future, save yourself more money in

588
00:36:48.960 --> 00:36:52.760
the future than what you're going to save today. Got

589
00:36:52.760 --> 00:36:55.480
to do some analysis out there. Don't fall for the

590
00:36:55.519 --> 00:36:59.760
trap of your tax person trying to make themselves look

591
00:36:59.800 --> 00:37:02.320
good by giving you a large refund at a cost

592
00:37:02.360 --> 00:37:06.400
of future refunds or future lower tax rates with use

593
00:37:06.440 --> 00:37:10.280
of appreciation. Same with Section one seventy nine Expensive the

594
00:37:10.360 --> 00:37:14.800
One Big Beautiful Bill increase the maximum amount a taxpayer

595
00:37:14.840 --> 00:37:18.360
may expense under Code Section one seventy nine. The two

596
00:37:18.360 --> 00:37:21.480
point five million Hey, I'm glad to see they increase

597
00:37:21.559 --> 00:37:23.960
this deduction, but I'm going to tell you what you're

598
00:37:23.960 --> 00:37:28.199
buying a two point five million dollars truck, tractor and trailer.

599
00:37:28.800 --> 00:37:31.000
You're never going to make it in the trucking business. Now,

600
00:37:31.480 --> 00:37:34.360
if you decided you're going into the trucking business and

601
00:37:34.440 --> 00:37:38.719
you have getting a fleet of trucks, then yes, we

602
00:37:38.760 --> 00:37:44.719
could possibly use Section one seventy nine to appreciate the

603
00:37:44.760 --> 00:37:48.800
maximum two point five million. Now, it's reduced by the

604
00:37:48.800 --> 00:37:53.920
amount by which the cost of qualifying profit property exceeds

605
00:37:53.960 --> 00:37:56.400
four million. So if you're buying four million worth of

606
00:37:56.400 --> 00:37:59.440
trucks or more, then you're going to be reducing that

607
00:37:59.480 --> 00:38:02.199
two point one five million dollars down. The two point

608
00:38:02.320 --> 00:38:04.480
five and the four million are going to be adjusted

609
00:38:04.519 --> 00:38:08.519
for inflation for tax years beginning after twenty twenty five.

610
00:38:09.760 --> 00:38:12.960
This rule applies to anything purchased and put in service

611
00:38:13.119 --> 00:38:17.440
after December thirty one four, so this year. So those

612
00:38:17.440 --> 00:38:20.920
are a couple of really nice things that are out there.

613
00:38:21.400 --> 00:38:24.559
You as a trucker are also going to be able

614
00:38:24.760 --> 00:38:31.079
to deduct for dums. Now, for diums and everything. What

615
00:38:31.320 --> 00:38:34.320
you've got to look at is nights away from home

616
00:38:34.559 --> 00:38:38.599
on the road. Per diems right now are at eighty dollars,

617
00:38:39.039 --> 00:38:43.440
maybe inflation adjusted later this year. Last year we got

618
00:38:43.440 --> 00:38:48.199
a huge inflation adjustment that took place October first, so

619
00:38:48.239 --> 00:38:50.920
you had to make sure you were tracking the difference

620
00:38:50.920 --> 00:38:53.000
between your days in the beginning of the year through

621
00:38:53.159 --> 00:38:56.920
October first, and then October first to the end of

622
00:38:56.960 --> 00:39:00.239
the year, and then you've got the inflation adjusted out

623
00:39:00.360 --> 00:39:02.760
for the last three months in the lower amount sixty

624
00:39:02.880 --> 00:39:08.400
nine dollars in the first part of the year, and

625
00:39:08.440 --> 00:39:12.199
then eighty percent was deductible. So it was a real

626
00:39:12.320 --> 00:39:14.239
nice adjustment. We'll see if they're going to do the

627
00:39:14.280 --> 00:39:18.199
adjustment this year. It took them a few years to

628
00:39:18.199 --> 00:39:20.599
do it before. But again, you've got to have a

629
00:39:20.679 --> 00:39:23.360
tax home. You've got to have something that you're caring

630
00:39:23.400 --> 00:39:27.719
for and taking care of paying for. Maybe it's fully

631
00:39:27.719 --> 00:39:30.880
paid off and you're paying just to maintain it, whatever

632
00:39:30.960 --> 00:39:33.480
the case may be, you've got a home. And then

633
00:39:33.519 --> 00:39:36.440
therefore you know when you're out on the road those

634
00:39:36.519 --> 00:39:39.840
nights away from home, you'll be able to take the deduction. Now,

635
00:39:39.960 --> 00:39:43.079
remember the first day you leave you get half a day,

636
00:39:43.199 --> 00:39:45.400
and day you come home you get a half a day,

637
00:39:45.440 --> 00:39:49.000
but everything in between is a full day. So if

638
00:39:49.039 --> 00:39:51.719
you're reporting to us that I was on the road

639
00:39:51.960 --> 00:39:55.119
four hundred and twenty five days last year, the first

640
00:39:55.159 --> 00:39:56.920
thing we're going to tell you, is there only three

641
00:39:57.000 --> 00:39:59.440
hundred and sixty five days in a year. Second thing

642
00:39:59.480 --> 00:40:02.079
we're going to tell that means you never returned home,

643
00:40:02.599 --> 00:40:06.599
and therefore you don't get the per diems and therefore

644
00:40:07.119 --> 00:40:09.199
you take actual expenses.

645
00:40:09.519 --> 00:40:10.039
That's it.

646
00:40:10.519 --> 00:40:15.079
So realistically, every trucker I know returns home to spend

647
00:40:15.119 --> 00:40:18.199
some time with family. If you're traveling in your truck

648
00:40:18.239 --> 00:40:20.719
and you have no home, you're considered a tax turtle

649
00:40:21.199 --> 00:40:25.280
and therefore the pre deem out there. Vince asked a

650
00:40:25.360 --> 00:40:28.159
question about per diems, does that include if you are

651
00:40:28.239 --> 00:40:30.760
renting or do you have to own. You can be

652
00:40:30.840 --> 00:40:35.320
renting an apartment that works, You can be renting a

653
00:40:35.360 --> 00:40:38.960
home that works, You can own a home, own a kindo.

654
00:40:39.639 --> 00:40:44.039
Those things work. As a matter of fact, if you've

655
00:40:44.039 --> 00:40:48.280
got a home or apartment or whatever, there's some advantages

656
00:40:48.320 --> 00:40:53.039
that you can actually lease the place, your home or

657
00:40:53.079 --> 00:40:56.079
your apartment to your business for up to fourteen days

658
00:40:56.559 --> 00:40:59.639
and got a lot of qualifications you can do on it.

659
00:41:00.440 --> 00:41:02.920
But it could be tax free income or expense for

660
00:41:03.280 --> 00:41:09.480
your business out there. Alex with his question, is with

661
00:41:09.639 --> 00:41:13.000
the tax changing all the time, can you really plan

662
00:41:13.119 --> 00:41:17.239
for future taxes? Yes? No, maybe what you're planning and

663
00:41:17.360 --> 00:41:20.679
when we are planning is we are looking at what

664
00:41:20.719 --> 00:41:24.960
the permanent tax code is, and then we plan around

665
00:41:25.360 --> 00:41:28.199
that tax code to begin with. We also look when

666
00:41:28.199 --> 00:41:32.679
we're planning around, what are the temporary things in tax

667
00:41:32.719 --> 00:41:36.599
code and how do you use these items to best

668
00:41:37.079 --> 00:41:42.159
impact you personally on your individual taxes or if you're

669
00:41:42.239 --> 00:41:46.039
running a business like we do with Trucker tax tools

670
00:41:46.360 --> 00:41:50.960
and working with truckers out there, we help them plan

671
00:41:51.400 --> 00:41:55.159
to save the most money for their business and then

672
00:41:55.840 --> 00:42:00.159
via that we're saving as much money for them personally.

673
00:42:00.639 --> 00:42:03.760
One thing I could say about tax planning is tax

674
00:42:03.840 --> 00:42:09.880
planning is adaptive for adapting. Here you're out every year,

675
00:42:10.000 --> 00:42:13.880
we're looking at, you know, net income. What things can

676
00:42:14.239 --> 00:42:19.119
our owners of our businesses do that would help their

677
00:42:19.320 --> 00:42:23.400
bottom line. Now bottom line is both before and after

678
00:42:23.639 --> 00:42:28.519
tax bottom line, so you know, maybe it's putting more

679
00:42:28.559 --> 00:42:33.079
money away for retirement. Maybe it's if you've got employees

680
00:42:33.280 --> 00:42:35.679
offering a four to h one K program that helps

681
00:42:35.719 --> 00:42:40.000
save taxes for both employer and the employee based on

682
00:42:40.079 --> 00:42:43.480
what's being put away. If you are a sole owner,

683
00:42:43.639 --> 00:42:46.880
maybe it's putting a solo four oh one K in place,

684
00:42:47.039 --> 00:42:50.440
or a simplified employee pension plan. If you've got a

685
00:42:50.519 --> 00:42:55.239
high deductible HS health plan, maybe it's putting money into

686
00:42:55.320 --> 00:43:01.960
an HSA and maximizing the tax deduction there. Maybe it's

687
00:43:02.000 --> 00:43:05.000
finding a way to put dependent care plans in place

688
00:43:05.119 --> 00:43:10.079
that help you or your employees across the board. These

689
00:43:10.079 --> 00:43:13.400
are the things that you do in tax planning and

690
00:43:13.480 --> 00:43:17.800
how to save money for you and I as a

691
00:43:18.039 --> 00:43:22.679
business owner and then as an individual. So tax planning

692
00:43:23.159 --> 00:43:25.360
you have a lot of variables. Now, if you're an

693
00:43:25.400 --> 00:43:27.400
owner operator, I'm going to tell you the best thing

694
00:43:27.400 --> 00:43:30.440
to do right now is pick up the phone and

695
00:43:30.519 --> 00:43:34.079
call the Trucker Tax Tools and then go to Trucker

696
00:43:34.159 --> 00:43:38.880
Tax Tools dot com. Put in your information, we'll call you,

697
00:43:38.880 --> 00:43:41.559
we'll get you set up. We'll talk about your bookkeeping, taxes,

698
00:43:41.599 --> 00:43:43.599
what we do to save you money and make your

699
00:43:43.639 --> 00:43:48.320
life running or smoothly. But again, you know it starts

700
00:43:48.360 --> 00:43:51.360
with going to Trucker Tax Tools dot com. Hey, I'm

701
00:43:51.400 --> 00:43:54.039
running out of time and I've been long winded. Make

702
00:43:54.079 --> 00:43:56.199
sure each week what you do is you come here

703
00:43:56.239 --> 00:44:00.000
to tax Talk for you dot com, follow us there

704
00:44:00.159 --> 00:44:03.639
or follow us on Facebook. Never miss an episode, whether

705
00:44:03.679 --> 00:44:08.519
it's our podcast iHeart wherever you listen podcast look us

706
00:44:08.559 --> 00:44:10.599
up at Tax Talk for You, but be here every

707
00:44:10.639 --> 00:44:13.760
Monday at ten am Eastern time, right here on W

708
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four CY Radio. Thank you having God bless, glorious and

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an awesome week. See you next week.

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Are you an individual or business that wants to understand

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taxes and how they affect you? Are you looking for

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specific tax advice for self employed business owners and truckers.

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Are you behind on taxes and your bookkeeping? Are you

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dealing with dirs and ready to have some relief? Then

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you need Tax Talk for You, hosted by tax and

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trucker expert Barry g. Fouer Ea Kenyan ten am the

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Eastern Time every Monday, right here on W four CY

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Radio and Talk for TV. Don't forget to check this

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and past episodes at tax Talk for You dot com.

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See you next week at w fur c Y dot

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com