"Tax Chaos 2025: IRS Updates, Trump's Plan, and How to Avoid Extra Taxes with Payment Apps!"

Trivia Question❓

In which year was the first income tax introduced in the United States, and how much was the tax rate?

Answer at the bottom of the newsletter

The IRS has not yet announced the official start date for the 2025 tax season, but it is anticipated to begin in late January, as is customary. For context, the 2024 tax season started on January 29, 2024, and a similar timeframe is expected for 2025. The exact date is likely to be confirmed in early January 2025.

2025 Tax Brackets: New IRS Updates You Need to Know

Discover the 2025 tax bracket changes, standard deduction increases, and updated capital gains rates. Learn how these IRS updates will save you money on your next tax return.

How You Can Pay Less Taxes This Year

The IRS has just rolled out its 2025 bracket updates, and there’s good news—millions of taxpayers will see lower taxes on their returns. With changes to tax rates, standard deductions, and capital gains limits, you’ll be able to keep more of your hard-earned money.

Here’s a breakdown of everything you need to know to save on taxes this year.

Joke Of The Day

Why did the accountant break up with the tax return?

Because it was too taxing of a relationship!

New IRS $600 Rule for Payment Apps: What You Must Know to Avoid Extra Taxes

The New IRS Rule: $600 Threshold on Payment Apps Explained

Introduction:

Have you ever received money through Venmo, PayPal, or Cash App?

It might seem innocent, like splitting a dinner bill or paying for a babysitter.

But with the IRS's new reporting rules, you could face unexpected tax headaches.

Starting with payments over $600, these platforms are now required to report your transactions to the IRS.

This change could affect millions of taxpayers—especially those who aren't prepared. But don’t worry! In this guide, we'll break down what’s changing, what it means for you, and how to avoid overpaying taxes.

READ MORE

Quote Of The Day

"The only certainties in life are death and taxes, but at least tax season only comes once a year!"

Trump’s Tax Plan: Big Changes You Need to Know

What the New Tax Plan Means for Everyday Americans

Imagine keeping more of your hard-earned money while enjoying better deductions.

With Republicans holding a majority, changes to the tax code are on the horizon, and they’re poised to benefit millions of Americans. If you don’t adapt, you could miss out on huge savings.

Let’s break down the key changes and how they might work in your favor.

No Income Tax Hikes, Only Potential Savings

One promise of the new plan is clear—no increases in income tax rates.

Instead, many will see their taxes decrease or stay the same. Aligning your finances with these changes could lead to substantial savings.

Permanent Individual Tax Cuts

The tax cuts introduced in 2017, including the reduction of the maximum tax rate to 37%, were temporary and set to expire in 2025.

The Trump tax plan aims to make these cuts permanent.

Standard Deduction: Here to Stay

The standard deduction, which doubled in 2017, was also temporary.

Under the new plan, it would become permanent, keeping deductions at $15,000 for individuals and $30,000 for married couples.

READ MORE

Interesting Facts

Did you know that the first income tax in the United States was actually implemented during the Civil War to fund the war effort?

In 2018, the IRS reported that the average tax refund was around $2,800, but many taxpayers still end up owing money instead.

Tax fraud costs the United States government an estimated $450 billion each year, meaning that honest taxpayers end up paying more to make up for those who cheat the system.

BOI Filing Requirements Paused... Again (For Now)

Here’s the latest: The BOI filing requirement from FinCEN is on hold once more. A nationwide injunction has been reinstated, halting enforcement temporarily.

Timeline of Events

January 1, 2024: BOI filing requirements officially became mandatory for LLCs and Corporations under the Corporate Transparency Act.

December 3, 2024: A Texas court issued a nationwide injunction, pausing enforcement (good news!).

December 23, 2024: The Fifth Circuit Court of Appeals overturned the injunction, reinstating the requirement and setting a January 13, 2025 deadline for entities formed before 2024 (not-so-good news).

December 26, 2024: The injunction was reinstated, halting enforcement once again (more good news!).

December 27, 2024: FinCEN confirmed that businesses are not required to file until further notice (phew!).

What Does This Mean for You?

While enforcement is currently paused, the situation could change quickly. It’s a good idea to stay ahead by:

Staying informed: Watch for updates from FinCEN and the courts.

Preparing early: Gather the required information now to avoid a last-minute scramble if the requirement is reinstated.

Taking proactive steps: If you’d rather not wait and worry, you can file for FREE here or let us do it for you for a small fee.

Stay tuned for more updates as this situation unfolds!

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💡 Answer to Trivia Question:

The first income tax in the United States was introduced in 1861, and the tax rate was 3% for incomes over $800.