March 30, 2026

Understanding the One big Beautiful Bill

Show Notes
Transcript

Tax Talk 4 U –Understanding the One big Beautiful Bill – OBBBA Overtime rules for 2025 taxes and how reporting will change for 2026, Changes by the OBBBA such as new overtime, Charitable contributions and most importantly for Owner Operators the Qualified Business Income (QBI) deduction all continue of 2026 as well as increases for inflation that impacts all taxpayers. 6. Enhanced tax benefits for dependent care, 7. Health savings accounts (HSAs) available for marketplace plans

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).

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WEBVTT

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The topics and opinions express the following show are solely

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those of the hosts and their guests, and not those

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of W FOURCY Radio. It's employees are affiliates. We make

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

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products mentioned on air or on our web. No liability

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explicitor implies shall be extended to W FOURCY Radio or

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its employees are affiliates. Any questions or comments should be

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directed to those show hosts. Thank you for choosing W

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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 host, Barry gur.

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Hey, welcome in great Monday morning to everybody. Hey, glad

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you're here today. You know we're talking about the big

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beautiful bill and some of the impacts it would have,

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uh you know for you, Uh, not just for your

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twenty twenty five tax return, but your twenty twenty six

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tax return and going forward. Hey, if you're a trucker

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and you're an owner operator out there, you know one

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of the biggest things, I mean, you're feeling it right

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now with fuel prices going up and freight cost still

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staying down. You know, you're you got to be finding

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every way to uh cut your expenses. Which part of

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those expenses you know, is taxes, and it's a large

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portion of your expenses. You're an owner operator, so proprietor

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even out there, you know, you know that your bottom

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line or your schedule see is going to be taxed

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at fifteen point three, So you got to be finding

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every deduction and possible out there and ways to save

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valuable money on you know, for your business. And then

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it starts, you know, hey, finding ways to save money

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on taxes. And you know, we talk at a Truck

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to Success with O. I. D A and the Foundation

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there and we talk about bookkeeping taxes and finding those

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items that you're paying for after tax dollars moving them

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to pre tax dollars. So expenses that you know you

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should be running through the business that you're not running

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through the business and making them pre tax, meaning you're

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spending money before you pay the tax, because when you're

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spending it after you, of course you're using that money

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that's already been taxed for Social Security, Medicare, and federal

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and state income taxes. But this is the same thing

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we discussed with all small businesses out there, is finding

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those expenses. Find it. Find them those expenses that belong

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in the business that you're paying maybe out of your

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personal maybe you're paying with cash. Uh, maybe you run

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them on a personal credit card, and they're not getting

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captured in your business. Finding those expenses and making those

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expenses a business expense paid with pre tax money, so

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it saves you money. They talk of one big beautiful bill.

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You know, I've seen the news reports out there. Oh,

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it doesn't impact us very much. Oh, it's not as

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much savings as it was built to be. Oh, hater's

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things wrong with it. Hey, there's just things wrong with

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every bill. And you've got Congress out there meddling and

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changing things, you know, not even authorizing funding for you know, TSA,

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and you got long lines, so you know they're causing

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the problem. And you know it happens to be one

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party that's doing it right now. But you know, in

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this one big beautiful bill there were a lot of

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great a lot of great things that help every day people. Now,

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you know, when you've heard the host and you heard

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talk radio, you've heard your TV station talking about overtime.

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Now you know when they said, hey, overtime wasn't going

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to be taxed, everybody was thinking every dollar of overtime

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wasn't going to be taxed. But that is not the

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way this was ever working. People didn't read the bill

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to completely understand what they were saying. In this bill

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for overtime. All they were really saying was the money

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they were paying you, not your regular hourly rate, the

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overtime portion, the half portion. So when they pay you

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time and a half or they pay you double time,

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the half portion, the double time portion would be not taxed.

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So you know, people were all right, well that was

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fun and exciting. Had a big power search here, and

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I guess somebody didn't like me talking about the one

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big beautiful bill and the effects of this one big

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beautiful bill of overtime. So if all of a sudden

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we go offline again, it's definitely because they don't want

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me talking about the One Big Beautiful Bill Act, you know,

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Trump's additional tax cuts for everyday Americans. So you know,

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we're gon we're gonna keep playing this by ear and

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seeing what happens the internet here at our offices down

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so we're kind of doing this by phone and doing this,

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you know, right off the top top of my head

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with with a little bit of notes and and everything.

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You know, So what if you know, we were talking

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about overtime and the impact from overtime. So in twenty

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twenty five on your W two, they actually the Congress

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is they did not impose rules on how the employer

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was going to identify the amount of overtime that you worked.

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So in twenty twenty six, IRS has come out with

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rules and how the W two is going to be

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laid out to identify the overtime amount. Now for twenty

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twenty five, the way you need to figure out your

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overtime is to go to your last paycheck stuff, pull

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that and it should have total of overtime work for

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the year, and then it should be able to compute

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that amount that was paid for overtime. As you know

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the function of those numbers to get down to the

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deductible portion of that. So they're kind of going on

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a good faith system as opposed to having it laid

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out on the W two. We've got many questions on it.

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We got questions on it back in January when the

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W two's first came out, and you know, we were

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expecting to see most employers lay it out for their employees.

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But then the IRS came back in and said, you know,

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there's no requirement for it, no place for it. So therefore,

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you know, use your last paycheck stub to uh get

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to the right dollar amount. So it's a good faith thing.

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You know, go in, figure it out, make sure you

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got the support for it with your last paycheck stub.

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Now what else did this one big beautiful build too.

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You know it added charitable deductions for non itemizers, So

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this is going to be an adjustment your adjusted gross

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income even if you don't itemize. Beginning in twenty twenty six.

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This year, all taxpayers claiming the standard deduction and be

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able to deduct up to one thousand or two thousand

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dollars if you're a couple filing jointly of charitable contributions.

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Now that is really nice. I mean, you know, many

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people do make charitable contributions. They contribute to their churches,

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you know, maybe Red Cross or you know, Goodwill or

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whatever else they're going to be giving money to. And

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you're now able to, even if you're claiming the standard deduction,

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get that extra one thousand or two thousand dollars deduction

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for your charitable contributions. Now, it's actually got to be

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made in cash, check, credit card to a qualified charity,

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So non cash giving does not count. Clothes or something

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else to Goodwill doesn't count. But if you rune them

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a check you paid in cash or credit card, and

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it's a qualified charity, then that will count and does count,

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so you get that added benefit right on top of

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your standard deduction. It's very hard, you know, when the

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standard deduction is so high, it's really hard for many

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tax payers to qualify to take anything other than the

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standard deduction unless you're paying a lot of mortgage interest

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or a lot in property taxes. You know, to get

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you above you know, that standard deduction is becomes a

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big hurdle. So getting this extra thousand or two thousand,

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if you're filing jointly, is huge relief for many many people.

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So you know, you want to make sure that you

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have got every avenue covered and every deduction that you

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can utilize, and that is one of those very good

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things for everyday taxpayers. Now, they did put some limitations

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on charitable contributions. So if you're itemizing, you know, and

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you're going through and itemizing your tax return, you're not

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going to benefit tax wise from making charitable contributions until

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the amount of the donation exceeds a half a percent

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of your adjusted gross income. So they think, because you

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are itemizing, now, you're rich and they want to tax you,

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and so they're going to put in they put in

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that half a percent that you've got to exceed your

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justed gross income before you can start taking charitable contributions.

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So it's going to have an impact on those that

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will itemize, these people that usually have larger mortgages, in

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larger state and local taxes, including property taxes, it becomes

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a little bit more expensive from you know that route

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as we go, So you know you're going to be

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on the lookout for those things just to make sure

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that you know if you can qualify, then you know

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you're going to have those limitations on those itemized deductions.

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Based on the fact that you're actually itemizing, So got

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to be aware of those things that they're going through

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and doing. Now they're also doing some income phase outs,

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and those income phase outs are going to be on

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the Qualified Business Income Deduction. Now, this deduction is is

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a really good deduction for small businesses, and this deduction

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allows you to deduct up to twenty percent of your

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net business income from taxation. So you know, you need

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to be aware of those things and making sure that

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you're utilizing those deductions. Yeah, I'm kind of multitasking here

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because I'm trying to get back up to where I

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don't have to hold a phone and we can get

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back into the studio, so it actually looks like my

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system is back up. So what I'm going to do

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is we're going to take a short break and I'm

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going to try to transition back over to my studio

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microphone and camera and so we can be here a

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little bit better with you rather than me trying to

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be sitting here holding my phone and moving around. So

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we're going to be right back after the short break.

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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 tax.

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Talk for you.

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If you owe the IRS or are going through an

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IRS audit, don't go at it alone. Call Taxation Solutions

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Tax Relief at eight eight eight nine three zero one

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back taxes, garnishments, leans and levees. Whether you're an individual

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or business, you need a solution and a strong, aggressive

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tax resolution. Don't let the IRS walk all over you.

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Stop the IRS now. Call eight eight eight nine three

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zero one zero one six or go to Taxationsolutions dot

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net now for a free no obligation consultation. Let's get

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back to tax talk for you with more tax once again.

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Here's your host, Barry G. Ballum.

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Well, I don't know if it worked or didn't work,

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which one I'm on? So okay, very good. So anyway,

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we're on back, maybe working full time. We were transitioning

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over and all of a sudden came unstable. But hey,

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we're here talking taxes on my internet problem stuff like that.

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It's just going to be one of those really weird

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shows that have out there. You know, we're talking about

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qualified business income deduction. Hey, it goes for small businesses.

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It goes for larger businesses, but it's not your personal

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tax returns. So if you are getting a K one

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from businesses maybe that you own or have partial ownership in,

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if you got a schedule C all, all this comes

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into play for the qualified business income deduction. Now, this

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original deduction started in the twenty seventeen Trump tax cuts

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and then was extended in the One Big Beautiful Bill.

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It was something that was going to be phased out

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and go away and talk about a huge impact to

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small business people. It would have been a definitely an

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impact that everybody would have built and it would have

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been really tough to basically recover from as a small

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business owner. Beginning in twenty twenty six, income phase outs

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have been increased to benefit you, the business owner claiming

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the deduction. So for single filers, the income range for

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the phase out is seventy five thousand, beginning at a

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taxable income threshold of two hundred and one thousand and

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ending at two hundred and seventy six thousand, and then

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for married couples, the income range one hundred and fifty thousand,

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beginning a taxable income threshold four hundred three thousand and

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fifty three thousand and for comparison, these ranges were fifty

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00:16:10.159 --> 00:16:13.200
one hundred thousand and five. So this means as you

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00:16:13.320 --> 00:16:18.919
earn more, you'll have less fear of losing this qualified

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00:16:19.080 --> 00:16:24.440
business income deduction, so this is a really a good thing.

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They also put some minimums in that affected twenty twenty

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five and six and going forward, so even if you

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don't have enough money to get the full qualified business

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00:16:37.799 --> 00:16:44.120
income deduction, you have some limited deductibility based on the

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fact that you made you know, at least a minimum

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money out there, So it's a good thing. They also

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did this one big bit beautiful bill enhance tax benefits

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for dependent carre so through employer sponsored programs, taxpayers can

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elect pre tax salary deferrals into a dependent care flexible

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spending account to pay for qualified dependent care expenses. Now,

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you know, I don't have any young kids, and I

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know dependent care. We had Mother's Day Out program and

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other programs we had our kids in. It was really expensive.

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And that was way back when, you know, twenty years ago.

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I've seen what's cost of daycare for my grandkids and

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00:17:32.279 --> 00:17:36.519
oh my gosh, it is expensive. It's you know, two

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00:17:36.720 --> 00:17:41.480
grandkids then going to a daycare takes up a salary

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of my daughter in law, and you know, sometimes you go, man,

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what am I doing? I'm just working to keep my

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kids in daycare, so you know, the benefit there wasn't

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much benefit of having two kids in daycare and working

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full time. You know, I don't I can't imagine how

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some people do this this time that the cost of

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00:18:05.960 --> 00:18:10.160
daycare has gone, you know, through the roof, and you know,

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keeping multiple kids in daycare full time is cost prohibitive.

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You know, my daughter Lancho's to stay home, you know,

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with the kids. But where my son works, he was

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able to use the flexible spending account to pay for

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00:18:28.920 --> 00:18:32.160
some of the daycare. You know, there was a limit

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00:18:32.200 --> 00:18:36.000
of five thousand, and now it's going up to seven thousand,

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00:18:36.519 --> 00:18:40.759
so you know it's been expanded a little bit, maybe

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00:18:40.799 --> 00:18:44.440
not enough for you know, the cost of daycare out there.

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00:18:44.880 --> 00:18:47.960
I think this should be much higher so that they

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00:18:48.000 --> 00:18:51.640
could use the flexible spending accounts so that you know,

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they can put money away before tax to pay for daycare.

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00:18:56.200 --> 00:18:58.359
I also think what they should have done is make

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00:18:58.440 --> 00:19:01.880
it allowable to be rolled over and just if you

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00:19:01.920 --> 00:19:05.720
don't use it, you lose it. So you know, those

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00:19:05.759 --> 00:19:07.759
are the kind of things that I think should happen

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and in common sense, kind of like those health savings

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counts HSA is you know, hey, you can put money

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into it, not use it, and it rolls you know,

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for the future, and it even gives you investment options

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00:19:21.519 --> 00:19:23.680
in that, and then it should be doing the same

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00:19:23.799 --> 00:19:26.839
thing in these flexible savings. As a matter of fact,

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00:19:26.839 --> 00:19:28.920
if you don't and you continue to roll it over,

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00:19:29.279 --> 00:19:31.039
you should be able to convert it to something like

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a ROTH or something so that you can maybe do

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00:19:34.039 --> 00:19:36.079
it for your children or do it for something for

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the future. But this flexible spending account through your employer,

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00:19:42.799 --> 00:19:46.359
if they offer the plan, has moved the annual limits

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00:19:46.400 --> 00:19:49.960
from five thousand to seventy five hundred, so you know

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00:19:50.079 --> 00:19:52.440
you're going to be able to take advantage of. And

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00:19:52.720 --> 00:19:56.839
the Child Independent Care Tax Credit has also been expanded,

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00:19:57.160 --> 00:20:01.279
you know, beginning in twenty twenty six. This year, the

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00:20:01.279 --> 00:20:04.400
maximum rate increases from thirty five to fifty percent of

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00:20:04.599 --> 00:20:08.759
qualified expenses. So there are little other benefits to you

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if you do have children independent care, so take advantage

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00:20:14.240 --> 00:20:18.039
of making that you get to use all those rightops. Now,

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speaking of HSA's Health Savings accounts. You know, we've always

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had to ask, is you know, the plan you are on,

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00:20:28.720 --> 00:20:31.519
is it eligible for Health Savings ACOUNTSTU. If you're on

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like a meta share plan, it's not eligible. It's not

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00:20:34.279 --> 00:20:39.279
considered considered technically insurance. If you're on a plan that

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00:20:39.480 --> 00:20:44.799
wasn't eligible for HSA's, you goodn't put money into an HSA.

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00:20:46.079 --> 00:20:50.160
To look at HSA is, they're now available for market

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00:20:50.480 --> 00:20:54.599
place plans. They're now available to you if you have

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00:20:54.720 --> 00:20:59.559
a marketplace plan. To establish and fund an HSA, the

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00:20:59.599 --> 00:21:03.400
individual or family must be enrolled in a high deductible

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00:21:03.680 --> 00:21:07.079
health plan. And I haven't really seen anything that's considered

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00:21:07.119 --> 00:21:09.599
to be really a low deductible health plan. I mean,

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if you can afford it, and you have a little

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deductible plan, God bless you. I've seen the rates on

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00:21:15.160 --> 00:21:19.839
these health plans through the marketplace. You know, you used

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to be such that we could afford to carry health

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00:21:23.440 --> 00:21:25.960
insurance for all of our employees, and then of course

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we got Obomacare and all the rates went through the roof.

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I mean, you think about it. You know, fifteen years ago,

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00:21:33.319 --> 00:21:35.960
you know, we were paying only a couple hundred dollars

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00:21:35.960 --> 00:21:39.400
a month to have health insurance for each of our employees.

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00:21:39.799 --> 00:21:42.920
And then now you're sitting here talking about seven eight

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00:21:43.200 --> 00:21:47.799
thousand dollars a month to have health insurance for your employees.

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Small business can't afford it, The employees couldn't afford it.

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00:21:52.119 --> 00:21:54.680
And even if we were paying, you know, they're paying

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a minimum of fifty percent. And at times when the

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00:21:57.279 --> 00:21:59.240
plants were only a couple hundred a month, we were

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00:21:59.240 --> 00:22:02.799
paying one hundred percent of their health plan. And then

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you know, as we saw these raids go through the roof,

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00:22:05.680 --> 00:22:08.359
we could only afford to pay maybe fifty percent of it,

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00:22:08.839 --> 00:22:11.240
and it was cheaper for some of them to go

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right through the marketplace, So we would then lose the

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number of eligible employees to get into an employer plan

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as such. So now if you've got a plan through

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00:22:22.559 --> 00:22:28.240
the marketplace, beginning this year, the rule is modified to

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automatically include all bronze plans and catastrophic plans available through

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the Affordable Care Act or the Unaffordable Care Act marketplace.

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It expands access to hsas for more individual families, and

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00:22:46.720 --> 00:22:48.880
it can provide you with the deduction of up to

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00:22:49.039 --> 00:22:53.240
four thousand for self coverage eight seven hundred and fifty

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00:22:53.240 --> 00:22:56.000
for family coverage, and then if you're over fifty five,

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00:22:56.119 --> 00:22:59.920
you can contribute an extra thousand dollars. So it does.

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00:23:00.039 --> 00:23:03.359
Let's give you that option. Now, if you haven't filed

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00:23:03.359 --> 00:23:06.039
your taxes yet for twenty twenty five and you're playing

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00:23:06.200 --> 00:23:09.440
qualified for essay, hey, you can still make that HSA

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00:23:09.519 --> 00:23:13.200
contribution all the way fifteen and to like a say

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00:23:13.240 --> 00:23:16.759
bank or someplace and set up your HSA account and

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00:23:16.799 --> 00:23:19.319
then you'll be able to get that deduction your tax

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as well. So there are some really good things in

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here that really will save you money. Now, something else

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that change limitations on applaning gambling boss. Historically, the amount

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of gambling losses a taxpayer could realize was limited to

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00:23:40.160 --> 00:23:43.880
their amount of winnings, but starting in twenty twenty six,

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00:23:43.960 --> 00:23:47.119
the amount of gambling losses a taxpayer can apply against

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00:23:47.200 --> 00:23:51.680
winnings is limited to ninety percent now, meaning someone who

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00:23:52.160 --> 00:23:55.480
breaks even will still be subject to taxes on your

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gambling activity. For example, hey, if you won ten and

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00:24:00.640 --> 00:24:03.319
lost ten thousand, you still have to report one thousand

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00:24:03.400 --> 00:24:07.160
dollars in income on your factors. Sorry, folks, you know this.

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00:24:07.559 --> 00:24:09.799
They're looking for money. And I guess if you have

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the wherewith ought to go and gamble that much, maybe

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00:24:12.400 --> 00:24:14.440
you should be paying taxes. And I guess this is what

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00:24:14.480 --> 00:24:18.039
they're thinking, even if you lost more. You know, so

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00:24:18.200 --> 00:24:21.279
if you won ten thousand, you lost fifteen thousand in

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00:24:21.319 --> 00:24:24.839
that same event, you don't get a five thousand dollars loss,

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00:24:24.839 --> 00:24:26.440
so you don't even get to break even. You get

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00:24:26.480 --> 00:24:29.559
to pay tax on a thousand dollars. So you know,

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00:24:30.039 --> 00:24:33.839
if they issued that statement of gambling winnings and they

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00:24:33.880 --> 00:24:37.200
reported it to the IRS, hey this is where you're

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00:24:37.240 --> 00:24:41.680
going to lose on top of losing. Nobody said, hey,

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00:24:41.720 --> 00:24:44.000
you're going to be a winner in taxes. You get

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00:24:44.039 --> 00:24:48.759
to lose and then lose again. So IRS recently announced

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00:24:49.000 --> 00:24:56.279
the changes and adjustments for more than sixty different tax provisions,

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00:24:56.319 --> 00:25:00.359
including the tax raid schedules and other tax changes. You

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00:25:00.359 --> 00:25:02.799
can go over to IRS dot gov and see all

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00:25:02.839 --> 00:25:07.640
sixty oh them. We're going to cover all of these

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00:25:07.759 --> 00:25:13.119
changes and things that the IRS change for rates, standard

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00:25:13.200 --> 00:25:17.920
deduction and marginal tax rates or income tax credits all that.

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Right after this we.

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00:25:20.519 --> 00:25:24.400
Have only scratched the surface of today's show. Please stand

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00:25:24.440 --> 00:25:27.480
by as Barry G. Fowler will be right back with

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00:25:27.799 --> 00:25:33.720
tax talk for you as an owner operator. You already

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00:25:33.759 --> 00:25:37.279
spend too much time away from your family. Stop spending

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00:25:37.319 --> 00:25:41.200
time doing paperwork. Go to Trucker tax tools dot com

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00:25:41.240 --> 00:25:45.799
a solution built specifically for truckers. Trucker tax Tools dot

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00:25:45.799 --> 00:25:51.880
Com makes your life run smoothly. Let's get back to

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00:25:52.039 --> 00:25:55.759
tax stock for you with more tax stock once again.

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Here's your host, Barrygfaller.

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Hey, welcome back. Hey. You know, if you're a trucker,

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like we talked about the opening of the show, you

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00:26:06.359 --> 00:26:10.240
know you're looking for ways to save money taxes, especially

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00:26:10.359 --> 00:26:12.000
for twenty six. I mean, I wish we could go

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00:26:12.079 --> 00:26:15.720
back and change twenty twenty five, but it's your hard

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00:26:15.720 --> 00:26:18.839
press to do that. We can, you know, if you

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00:26:18.960 --> 00:26:21.039
decide to come over to truck and Tax Tools and

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00:26:21.240 --> 00:26:24.000
work with us, and if we've got to go back

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00:26:24.039 --> 00:26:26.960
and do bookkeeping for twenty twenty five, and we're going

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to be looking for every deduction out there, So we're

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00:26:29.240 --> 00:26:30.960
going to be looking for things maybe you paid in

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00:26:30.960 --> 00:26:34.519
your personal account for business, look at every deduction that

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00:26:35.319 --> 00:26:39.559
should be there so that you know you can save

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money on taxes because you know your fuel costs have

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