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What the “Big Beautiful Bill” Means for Your Taxes President Trump’s newly signed “Big Beautiful Bill” is more than a political headline—it’s a sweeping tax overhaul that reshapes how Americans earn, save, and file. Whether you’re a W-2 employee, business owner, or retiree, here’s what you need to know about the tax-wise changes coming your way. 📉 1. Permanent Extension of 2017 Tax Cuts The bill locks in the lower tax rates from the 2017 Tax Cuts and Jobs Act (TCJA), which were previously set to expire in 2025. That means: Lower individual income tax rates remain in place Higher standard deductions are now permanent Expanded child tax credit continues beyond 2025 This move is expected to save high-income households tens of thousands over time, while middle-income families see modest relief. 💰 2. No Tax on Tips and Overtime (With Limits) One of the most talked-about provisions: tips and overtime pay are now partially tax-exempt . Up to $25,000 in tips and $12,500 in o...

 💼 Should You Pay Yourself a Salary? (For LLC/S-Corp Owners) Navigating how to compensate yourself as a business owner isn’t just about getting paid—it’s about staying compliant, managing taxes, and protecting your financial future. If you’re an LLC taxed as an S-Corporation, paying yourself a reasonable salary isn’t optional—it’s required. Let’s unpack why, when, and how to pay yourself a salary the right way. 🧐 What Does "Reasonable Salary" Mean? The IRS expects S-Corp owners who perform substantial work for the business to pay themselves a “reasonable” wage. That means: Comparable Pay : Your compensation should be similar to what someone else would earn doing your job. Fair for Workload : Consider the time, effort, and responsibilities you take on. Backed by Evidence : You may need to support your salary with industry data or job listings. 💡 Pro tip: Documenting your rationale—like hours worked, roles performed, and industry benchmarks—can save you trouble du...

  Day 7 – How to Hire Your Kid Legally — And Save Taxes Hiring your child might sound like a sentimental idea, but it’s actually a strategic tax-saving move —if done right. The IRS allows business owners to hire their minor children under certain conditions, offering both tax deductions for your business and income tax benefits for your child . Here's how to make it work legally and efficiently. ✅ Why Hire Your Child? 1. Your Business Gets a Deduction Wages paid to your child are a legitimate business expense. That means your business income (and tax liability) goes down. 2. Your Child May Owe Zero Taxes As of 2025, a child can earn up to $14,600 (the standard deduction) without paying any federal income tax— as long as it’s earned income (i.e., wages, not gifts or allowances). 3. No Payroll Taxes for Some Businesses If your business is a sole proprietorship or a partnership where both partners are the child’s parents , and your child is under 18 , then: No Social S...

  📅 Day 6: What’s Actually Deductible When You Eat Out for Business (2025 Edition) Business meals can be a legit tax deduction — but only if you follow the rules. And no, your solo sushi craving doesn’t count (unless your client’s name is “Tax Return”). Let’s break it down. 🍽️ What Counts as a Deductible Business Meal? In 2025, most business meals are 50% deductible , but some are 100% . Here’s how to tell the difference: ✅ 50% Deductible Meals with clients or prospects (as long as business is discussed and you’re present) Meals while traveling for business Team lunches or working meals (not lavish) ✅ 100% Deductible Company-wide events (like holiday parties) Meals provided for the employer’s convenience (e.g., working late at the office) Promotional events open to the public (like a launch party with snacks) 🚫 Not Deductible Entertainment (concerts, sports games — even if business is discussed) Meals that are overly extravagant Personal meals or groceries 🧾...

  📅 Day 5: How to Track Mileage Without the Stress If you drive for business — even occasionally — tracking your mileage could lead to real tax savings. But let’s be honest: nobody wants to carry around a paper logbook or guess their odometer reading every day. Good news: there are smarter (and simpler) ways to do it. 🚗 Why Mileage Matters The IRS allows you to deduct business-related driving at the standard mileage rate , which in 2025 is $0.67 per mile (subject to updates). That means: 100 miles = $67 deduction 1,000 miles = $670 deduction For many solopreneurs, that’s hundreds or even thousands of dollars in write-offs — if you track it properly. ✍️ What Trips Can You Count? Driving to meet a client Picking up business supplies Visiting a vendor or coworking space Attending a business conference or training 🚫 Personal commutes don’t count (like from home to a regular office location). 📱 3 Stress-Free Ways to Track Mileage Mileage Apps (automated, low eff...

  📅 Day 4: Sole Prop vs. LLC vs. S-Corp – Which Saves More? Choosing the right business structure isn’t just a legal decision — it’s a tax-saving strategy. While all three let you run a solo business, they come with different tax treatments, paperwork, and profit potential. Here’s what you need to know: 🧾 1. Sole Proprietor Default status for most freelancers and small business owners. ✔ Easy to set up, no formal registration ✘ You pay self-employment tax (15.3%) on all profits ✘ No legal separation between you and the business ✅ Best for: Just getting started or low-income side hustles 🧾 2. LLC (Limited Liability Company) Gives you legal protection and some flexibility in taxation. ✔ Still simple to run, protects your personal assets ✔ Can choose to be taxed as a Sole Prop or an S-Corp ✘ Still pays self-employment tax unless you elect S-Corp status ✅ Best for: Growing businesses that want liability protection 🧾 3. S-Corporation (via LLC or Inc) Not a ...

  📅 Day 3: What Actually Counts as a Business Deduction? “Can I write this off?” As a CPA, I hear this question all the time — and honestly, it’s a good one. Business deductions aren’t just about saving money on taxes; they’re also about understanding what counts as an ordinary and necessary expense in your field. Here’s a simple breakdown to help make sense of it: ✅ The IRS Rule (in plain English) To be deductible, an expense must be: Ordinary : Common in your industry Necessary : Helpful and appropriate for your business It doesn’t have to be essential — just reasonable. 💼 Commonly Deductible Business Expenses Office Supplies & Software : Pens, printers, QuickBooks, Canva Pro Marketing Costs : Website hosting, email tools, social media ads Business Meals : 50% deductible when dining with clients or for business travel Professional Development : Courses, certifications, books related to your work Phone & Internet : Pro-rated for business use Mileage o...