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The tax landscape is in constant motion, and for individuals and couples, keeping up can feel like navigating a complex trail without a map. At Lightening the Load, we’re committed to being your tax basecamp, guiding you through every new twist and turn. Recently, new tax legislation has introduced some significant changes that could directly impact your tax return, offering incredible opportunities for tax savings. 

Let’s break down some of the key provisions in the new bill that affect individuals and families. 

Tax Relief for Tips and Overtime 

In a major change designed to help a wide range of workers, the new tax bill introduces a temporary deduction for both tips and qualified overtime pay. This is a game-changer for many service industry professionals and hourly workers. 

• Tips: You may now be able to deduct up to $25,000 of qualified tip income for tax years 2025 through 2028. This is a special, “above-the-line” deduction, meaning you can take it even if you don’t itemize. 

• Overtime: For qualified overtime compensation, a deduction of up to $12,500 is available for single filers, and up to $25,000 for married couples filing jointly. This applies to the “half” portion of “time-and-a-half” pay and is also an above-the-line deduction. 

Both of these deductions have income phase-out rules, so it’s essential to understand your specific situation to know your full eligibility. 

Changes to the Child Tax Credit 

For families, the Child Tax Credit is a critical source of tax relief. The new legislation has made a few important modifications that could increase the credit amount for many households. 

• Increased Value: The credit has been increased from $2,000 to $2,200 per eligible child for the 2025 tax year. This amount will also be indexed for inflation in subsequent years. 

• Work-Eligible SSN Requirement: There is a new requirement that the child and at least one filer on a joint return have a work-eligible Social Security Number. 

These changes are designed to provide more support for working families and are a key consideration as you prepare for tax season. 

Introducing TRUMP Accounts 

The new bill also creates a new savings vehicle for children, often referred to as “Trump Accounts.” These tax-advantaged accounts aim to encourage long-term savings for a child’s future. 

• Government Contributions: An eligible child born between 2025 and 2028 will receive a one-time $1,000 contribution from the government. 

• Tax-Deferred Growth: Like some other popular accounts, contributions and earnings can grow tax-deferred. 

• After-Tax Contributions: Individuals and employers can make after-tax contributions up to a combined annual limit. 

This new account adds another layer to family tax planning, providing a way to build a nest egg for the next generation. 

For many high-net-worth individuals, the annual question of whether to itemize or take the standard deduction has become increasingly complex since the 2017 tax law. With the new tax bill, signed into law in July 2025, the debate has been reshaped entirely, especially for homeowners in high-tax states. At Lightening the Load, we understand that a one-size-fits-all approach to tax strategy doesn’t work for you. We are your steadfast partners, here to provide the clarity you need to make the right decision. 

Understanding the New Rules of the Game 

The new tax bill is a game-changer because it directly addresses the State and Local Tax (SALT) deduction cap, a provision of the 2017 law that significantly impacted many taxpayers. 

The new, temporary change increases the SALT deduction cap from $10,000 to $40,000 for single and married filers. This is a significant shift that will be in effect through 2029, with a gradual phase-out for those with modified adjusted gross income above $500,000. For context, the standard deduction for the 2025 tax year is $15,750 for single filers and $31,500 for married couples filing jointly. 

How the New SALT Cap Changes Everything for Homeowners 

Before this new legislation, homeowners in high-tax states often found that their combined property and state income taxes quickly exceeded the $10,000 SALT cap. This left them with a total of itemized deductions that was often less than the standard deduction, making itemizing a non-starter. 

The new $40,000 cap fundamentally changes this math. For many high-net-worth individuals, the higher cap means their property taxes and state income taxes alone may now be enough to make itemizing a more advantageous strategy. When you add other common itemized deductions to the equation, such as: 

• Mortgage Interest: The new law makes the $750,000 mortgage interest deduction cap permanent. For those with mortgages below this threshold, every dollar of interest paid adds to their potential itemized deduction total. 

• Charitable Contributions: Significant donations to charities can be a major component of a high-income individual’s itemized deductions. 

• Medical Expenses: While subject to an income threshold, large, uninsured medical expenses can also contribute to your total. 

When these deductions are combined with the new, higher SALT cap, the total may easily exceed the standard deduction. This can result in a lower overall tax liability and greater tax savings. 

Don’t Guess, Get a Professional Analysis 

The decision to itemize is no longer a simple one. The new tax bill, with its temporary provisions and phased-out benefits, requires a careful, personalized analysis. The right choice depends on your specific circumstances, including your income, home value, and state of residence. 

Don’t guess on your filing strategy. Let us run the numbers to see if itemizing still works for you under the new rules. Schedule your consultation today! 

Let us lighten your load. 

For small business owners, new tax legislation can often feel like a complicated maze, full of new rules and potential pitfalls. Rather than seeing this as an obstacle, we at Lightening the Load view it as an opportunity to help you navigate your tax journey with confidence. A recent tax bill has introduced several significant changes, and understanding them is crucial for your business’s financial well-being. Let’s take a closer look at what the new rules on State and Local Tax (SALT) deductions mean for you. 

Understanding the New SALT Rules 

The Tax Cuts and Jobs Act of 2017 (TCJA) introduced a significant change by capping the federal deduction for SALT at $10,000 for individuals. This was a notable shift, particularly for business owners in high-tax states. The new tax bill, however, brings a temporary change to this rule. 

Starting in 2025, the cap on the SALT deduction has been raised to $40,000 for most taxpayers, though it includes a phase-out for higher-income earners. This change is not permanent; the deduction will increase by 1% annually through 2029 and then revert to the $10,000 cap in 2030. 

The Impact on Your Pass-Through Business 

For many small business owners, this change directly impacts their personal tax situation. If your business is structured as a pass-through entity—such as an S-Corporation, partnership, or LLC—your business income is typically “passed through” to your personal tax return. This is where the SALT deduction comes into play. 

The new bill also has implications for the “Pass-Through Entity Tax” (PTET) workaround. In response to the initial $10,000 cap, many states created a PTET election, which allows a business to pay state income taxes at the entity level. This payment is then deductible as a business expense, effectively bypassing the individual SALT cap. The new tax bill preserves the use of this strategy, which is a relief for many business owners who rely on it. 

However, the rules for PTET can vary widely from state to state, and the decision to use this workaround requires careful consideration. A professional can help you weigh the benefits of a PTET election against the new, higher individual SALT deduction cap to determine the most advantageous strategy for your specific business. 

Why Proactive Planning Is Essential 

The new tax bill is not just about a single number; it’s about a shifting tax landscape that requires a strategic approach. What works one year might not work the next, especially with the temporary nature of the new SALT cap. Proactive planning is key to maximizing your tax position, ensuring you’re not caught off guard by changes in the law. 

The new tax bill could change how you operate. Contact Lightening The Load today for a clear breakdown of how these changes affect your bottom line. 

Let us lighten your load. 

For high-net-worth individuals, the final quarter of the year is more than just a countdown to the holidays; it’s a critical window for strategic tax planning. Your tax situation is complex and goes far beyond the standard deductions that apply to most taxpayers. At Lightening the Load, we understand that your wealth is unique, and we serve as your steadfast partners, accompanying you through the complexities of advanced tax strategies. 

A recent tax bill has introduced significant changes that provide both new opportunities and new rules to navigate. Here’s what you need to know as you plan for year-end. 

New Tax Bill Credits and Incentives to Leverage 

The recent tax bill brings a new level of certainty to tax planning for high-net-worth individuals. While much of the legislation focuses on business, there are significant provisions that directly impact your personal tax situation. 

• Estate and Gift Tax Exemptions: The new tax bill, signed into law on July 4, 2025, provides much-needed clarity on estate and gift tax planning. It permanently extends and enhances the federal estate, gift, and generation-skipping transfer (GST) tax exemptions. The exemption amount, which was previously set to revert to a much lower level, is now permanently set at $15 million per individual (and $30 million for married couples) beginning in 2026. This removes the urgency that many felt to make large gifts before the end of the year and provides a stable foundation for long-term estate planning. 

• Expanded Annual Gift Exclusion: The new law increases the annual gift tax exclusion to $19,000 per person in 2025 (up from $18,000). This allows you to give away more each year without tapping into your lifetime exemption, a powerful tool for transferring wealth and managing your taxable estate over time. 

• SALT Deduction Cap: For those who itemize, the cap on the State and Local Tax (SALT) deduction has increased from $10,000 to $40,000 for individuals, with a gradual phase-out for those with modified adjusted gross income over $500,000. While this change is temporary, lasting through 2029, it provides an immediate opportunity to deduct more of your state and local taxes, reducing your overall tax liability. 

• Changes to Other Credits and Deductions: The tax bill also includes other important changes that may affect your personal tax strategy. This includes provisions like a new deduction for tips and overtime pay, and a temporary deduction for interest on new car loans. These changes can provide additional avenues for tax savings, and a full review of your tax situation is essential to identify which ones apply to you. 

Your tax situation is a reflection of your unique financial landscape, and the strategies to manage it should be just as tailored. Navigating the nuances of new tax legislation and implementing advanced planning techniques requires a partner with deep knowledge and a forward-looking approach. 

Each situation is unique. Your tax strategy should be too. Let us help you navigate the complexities of high-net-worth tax planning. 

Let us lighten your load. 

As the year draws to a close, business owners often find themselves navigating a flurry of activity. For those with complex operations—be it multiple entities, long-term projects, or significant assets—this period is not just about finishing strong; it’s a crucial opportunity for strategic tax planning. At Lightening the Load, we see this as your chance to optimize your business’s tax position, and we’re here to be your basecamp for the journey. 

The Power of Timing: Income vs. Expenses 

At the heart of end-of-year tax strategy is the concept of timing. By carefully managing when you recognize income and when you incur expenses, you can significantly influence your business’s taxable income for the year. This isn’t about manipulating records; it’s about making smart decisions within the tax framework. 

For many businesses, the goal is to accelerate deductions and, where possible, defer income. For example, a business operating on a cash basis can prepay certain expenses like insurance premiums or office supplies before December 31st to claim the deduction this year. Similarly, an accrual-based business can expedite the billing process for expenses to ensure they are recorded in the current period. 

Your End-of-Year Tax Checklist 

To help you get started, here is a checklist of key areas to review before the year ends: 

• Accelerate Equipment Purchases: If your business needs new machinery, technology, or vehicles, now is the time to act. By placing a qualifying asset in service by year-end, you may be able to take advantage of significant deductions through Section 179 expensing or bonus depreciation, which can often allow you to deduct a large portion, or even the full cost, in the year of purchase. 

• Review and Prepay Expenses: Look for opportunities to prepay expenses that are deductible in the current year. This could include things like rent (within a certain timeframe), professional fees, or subscriptions. 

• Manage Inventory: Review your current inventory levels. Are there obsolete or damaged goods that can be written off? Properly accounting for this can reduce your taxable income. 

• Plan for Bonuses and Contributions: If you plan to pay employee bonuses, ensure they are approved and communicated by year-end to be deductible for the current tax year. The same timing considerations apply to contributions to employee retirement plans. 

• Write Off Bad Debts: Now is the time to review your accounts receivable. If you have any uncollectible accounts, you can formally write them off to claim a deduction. 

• Evaluate Repairs and Maintenance: Review large maintenance projects. Proper classification of these costs—as either deductible repairs or capitalized improvements—is critical. 

Beyond the Basics: For Complex Operations 

Complex businesses often have unique tax considerations. For example, companies with multiple entities may need to carefully plan intercompany transactions to ensure they are handled correctly. Businesses with long-term contracts must adhere to specific revenue recognition rules. And for those with international operations, the end of the year is a crucial time to review transfer pricing policies and other global tax compliance issues. 

These complexities underscore the value of a trusted partner. A thorough, end-of-year tax planning session is a chance to move beyond simple compliance and develop a strategy that supports your business’s long-term goals. 

Don’t leave money on the table. Schedule an end-of-year tax planning session with Lightening The Load to ensure your business is positioned for success. 

Let us lighten your load.