Breaking Down The OBBB
If you were watching fireworks this Fourth of July, you might’ve missed another kind of bang… the One Big Beautiful Bill being signed! This is going to have significant effects on your tax return, potentially even as soon as 2025, especially if you’re in one of these categories:
→ Taxpayers Who Take the Standard Deduction: Higher standard deduction amounts are taking effect beginning in the 2025 tax year.
→ Taxpayers Over Age 65: An additional $6,000 deduction for seniors (phased out based on income).
→ Taxpayers in High Tax States: The cap on the deduction for state and local taxes has been raised to $40,000.
→ Taxpayers Who Earn Tips: An up to $25,000 deduction of tip income for qualifying employees in traditionally tipped jobs.
→ Taxpayers Who Earn Overtime: An up to $12,500 deduction of qualifying overtime pay per taxpayer.
→ Business Owners: Many changes to key tax elements, including the QBI deduction, bonus depreciation, R&D expensing, opportunity zones, QSBS, and 1099 reporting thresholds.
Income thresholds, phaseouts, or other qualifications may apply in order for taxpayers to qualify for these deductions. Consult with your trusted tax professional about your unique tax situation.
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It’s more important NOW than ever to stay on top of your finances and understand how changing tax law will impact your personal and business finances.
I’m here to help you navigate these changes. Let me know if you have questions!
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Recommended Reading
💡”Will someone overseas be doing my bookkeeping?”
That question came up not once, but twice in the same week from potential clients.
And honestly? It’s a fair question.
As you grow your business and look for support, it’s important to consider not just who is doing the work, but where and how they’re doing it.
I’m sharing my thoughts on offshore bookkeeping, client concerns, and how I’ve chosen to build my team in this new blog post.
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This Month’s Freebie!
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September’s coming up quick, and it can be a big hiring month for businesses that are ramping up to meet their fall + winter demand and refocusing on Q4 goals.
But before you hire a new team member, you NEED to read this month’s freebie on worker classification. Click the link below to receive it!
You’ve got to worry about keeping the IRS, the DOL, and potentially your state happy when it comes to deciding whether your new team member is a contractor or employee!
P.S. Even if you’re not actively hiring, consider this your reminder to request W-9s from all contractors you’ve worked with so far in 2025!
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In Closing…
Ready to take advantage of a summer slowdown to get caught up on financial tasks that have been sitting on your back burner? Here’s how I can help:
Historic Bookkeeping Catch-up: Still need to file those 2024 taxes… and your QuickBooks file needs some work? We have space to complete two more historic bookkeeping clients before the extension deadline. Reach out today by completing our intake form here.
Monthly Bookkeeping: Have you come to the realization that you didn’t start your business to be a bookkeeper, and you’re ready to hand that task off? We have space to take on one more new monthly bookkeeping client to start in August, and two more in September. To get started, complete our intake form here.
Coming up in August — my next class at The Chattery!
Start Smart: Essentials for Starting a New Business
Date: Thursday, August 21st
Time: 6-7:30pm
Link to register is here.
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Vendor Spotlight – Relay Financial
Are you looking for a banking solution? I’ve got one for you!
Relay is an all-in-one business banking and money management platform to help small businesses understand what they’re earning, spending, and saving—so they can make the best financial choices for their business. With Relay, business owners can:
- Bank with no account fees, no overdraft fees, and no minimum balance required
- Organize expenses and cash reserves using up to 20 individual accounts
- Earn barrier free savings between 1-3% APY
- Issue up to 50 virtual or physical Visa® debit cards to meticulously organize spending by team or project
- Send payments and deposits via ACH, wires, or checks
- Cashflow automations, like maximum balance transfer rules and recurring payments
- Give team members and financial advisors secure, role-based banking access
- Integrate banking with accounting software like QuickBooks Online and Xero
- Get personalized customer support by email and phone
- And, my favorite feature from Relay – automated Profit First transfers! Read more here.
Getting started with Relay couldn’t be more simple – just click this link – the application process takes 10 minutes or less!
The Fine Print: Relay is a financial technology company, not a bank. Banking services and FDIC insurance are provided through Thread Bank, Member FDIC. The Relay Visa® Debit Card is issued by Thread Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa® debit cards are accepted.
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Looking for a DIY Solution?
Look no further than our Small Business Bookkeeping Tracker! For the start-up side gig who just has a few transactions a month, this tracker will be your BFF for tax filing. You can enter your transactions each month and this tracker will produce monthly and annual reports. The best solution for any business until you need to partner with a bookkeeper to provide done for you services.
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$97.00
Small Business Bookkeeping Tracker | Lookout Bookkeeping
This Small Business Bookkeeping Tracker in Google Sheets helps you keep track of your business income, expenses and… Read more
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