by Amanda O'Brien | Accounting News, News, Newsletter, Tax
Key Takeaways:
- The OBBBA made most 2017 TCJA tax cuts permanent, avoiding a scheduled tax increase in 2026.
- New “no tax on tips” (up to $25,000) and “no tax on overtime” (up to $12,500) deductions are now in effect.
- The Child Tax Credit rose to $2,200 per child, and new “Trump Accounts” let families save for kids under 18.
- 100% bonus depreciation is now permanent, giving businesses an immediate deduction on qualifying equipment.
- The tax cuts are partly funded by Medicaid and SNAP cuts, including new work requirements.
One Year of the OBBBA: What It’s Meant for Your Wallet
The One Big Beautiful Bill Act (OBBBA) made some of the biggest tax changes in years, and one year after Trump signed it into law, many Americans are still figuring out what it means for their finances. Here’s a look at some of the law’s biggest financial effects.
The 2017 Tax Cuts Preserved
The tax cuts from the 2017 Tax Cuts and Jobs Act (TCJA) were set to expire at the end of 2025, but the OBBBA made most of them permanent, so the current tax brackets and lower individual tax rates remain in place. Without the OBBBA, taxes would have increased for many households starting this year.
The standard deduction also got a small bump. For the 2025 tax year, it was $15,750 for single filers and $31,500 for married couples filing jointly. That amount will adjust each year for inflation.
New Tax Breaks for Workers and Seniors
The OBBBA introduced “no tax on tips” and “no tax on overtime.” Eligible workers can now deduct certain tip and overtime income, up to a specific amount. The tip deduction applies to up to $25,000 in qualifying tip income. The overtime deduction is capped at $12,500 and only covers the extra pay earned from working overtime, not regular wages. Both deductions gradually phase out at higher incomes.
Seniors also received a temporary tax benefit. Taxpayers age 65 can deduct up to $6,000 from their income through 2028 ($12,000 for a married couple). This deduction also phases out at higher income levels.
Larger Child Tax Credit and New Investment Accounts for Kids
The child tax credit was previously set to decrease from $2,000 to $1,000, but the OBBBA increased it to $2,200 per child. This amount will be adjusted for inflation going forward.
Another new feature of the OBBBA is the creation of “Trump Accounts,” a new kind of savings account for kids under 18. Parents and other adults can contribute up to $5,000 to an account annually.
Trump accounts are meant to encourage long-term saving by allowing money to be invested for a child’s future. And children born between January 1, 2025 and December 31, 2028 qualify for a one-time $1,000 deposit from the federal government. Money in Trump accounts can’t be touched until the child turns 18.
Business Tax Breaks Continue
The OBBBA extended or restored several tax provisions that encourage companies to invest in equipment, technology, and research. 100% bonus depreciation is now permanent, letting businesses deduct the full cost of qualifying equipment purchases immediately instead of spreading it out over years. The idea here is to encourage business expansion, job creation, and economic growth.
Medicaid and SNAP Spending Cuts
The price of the tax cuts in the OBBBA was paid, in part, by cuts to Medicaid and SNAP. The changes include stricter eligibility and work requirements for some recipients, along with other policy changes intended to reduce federal spending over time.
Supporters argue that these reforms encourage workforce participation and improve the long-term stability of these programs, but critics warn that it could make it harder for some low-income Americans to access healthcare and food assistance.
One year in and the OBBBA is shaping household finances with lower taxes, larger deductions, and expanded tax credits. And businesses have renewed investment incentives. But some families are adjusting to changes in Medicaid and SNAP. The long-term impact of the OBBBA will become clearer as time goes on.
by Amanda O'Brien | Accounting News, News, Newsletter, Small Business, Tax
Few things create more stress for a small business owner than receiving a notice from the IRS. A tax debt can quickly become overwhelming, but the worst thing you can do is nothing.
The good news is that IRS debt doesn’t have to derail your business. The key is tackling the problem before it grows larger.
Sticking Your Head in the Sand Only Makes the Problem Worse
The IRS charges interest and penalties that compound over time. By ignoring manageable debt, you’re allowing it to balloon into something much more difficult to handle.
In some cases, the IRS may file tax liens, levy bank accounts, or withhold certain income. Even if those consequences seem far away, waiting too long limits your options and can make negotiations more difficult. If you owe back taxes, taking action sooner almost always means paying less in the long run.
Organize Your Financial Records
Before you can fix the problem, you need to understand it. Start by pulling together your financial records: tax returns, payroll records, expense receipts, profit and loss statements, bank statements, invoices, and any correspondence you’ve received from the IRS.
Having accurate records can help you understand how much you owe. And if the IRS requests documentation, you’ll be ready.
Work with a Tax Professional
Seek out a qualified tax professional who specifically understands IRS debt resolution. A Certified Public Accountant (CPA) or a Certified Tax Resolution Specialist (CTRS) can review your situation, explain your options, and communicate with the IRS on your behalf. Depending on your circumstances, they may help establish payment plans, request penalty relief, or identify programs that could reduce the overall amount you owe, like an Offer in Compromise.
Not all tax situations require professional help, but seeking guidance early can help prevent bigger problems later. And you can stay focused on running your business.
Communicate with the IRS
The IRS responds better to taxpayers who stay in contact than those who avoid communication. If you receive a notice, respond by the deadline, even if you don’t have all the information yet. A simple acknowledgment lets them know you’re responsive, and it can buy you time.
If you can’t pay your full balance, ask about a payment plan. The IRS offers installment agreements that let you pay down your debt in monthly payments. This at least keeps penalties from piling up and shows the IRS that you’re working to resolve the issue.
Create a Plan Moving Forward
Resolving back taxes is crucial, but you also need to come up with a plan to prevent future tax problems.
Review your booking systems, set aside funds for future tax obligations, and make sure estimated tax payments and payroll tax deposits are paid on time. Regular meetings with an accountant or tax advisor can also help identify issues before they become serious.
by Amanda O'Brien | Accounting News, Business Growth, News, Newsletter, Small Business
What builds customer loyalty? Sure, clever campaigns, major sales, and successful product launches can build loyalty, but more often, real loyalty is built in quieter ways. It’s built over time through small, everyday actions that prove your reliability and consistency.
When you do what you say you’re going to do, day in and day out, it builds deep trust. The work customers rarely see often shapes their experience with your company or brand. This is invisible execution. It’s your quiet superpower, and it’s why strong operations matter.
Read on as we go over the small, behind-the-scenes actions that build a loyal customer base.
Reliability Builds Trust
Reliability creates a strong competitive advantage for small businesses. When customers know they can count on you to deliver, they stop comparing alternatives every time they need a product or service your company provides.
Consistently meeting expectations creates trust. Return calls quickly, deliver orders on time, show up when scheduled, keep projects on track, and communicate delays or roadblocks before the client has to ask.
Over time, as customers learn to count on you for consistency, you quietly and steadfastly build trust.
Supply Chains: The Invisible Thread of Customer Satisfaction
Supply chain disruptions don’t just happen to giant corporations. If you own a local coffee shop and run out of espresso, your customer feels the impact immediately. This is why supply chain reliability is huge.
Unlike major corporations, small businesses don’t need a massive coordination team, but you do need insight into your operations. Track inventory patterns, keep solid relationships with suppliers, and have backup options at the ready to minimize disruptions. And choose vendors who care about reliability as much as you do.
Solve Problems Before Customers Notice Them
The best businesses don’t just react to problems. They actively anticipate them before they happen. They look ahead to find potential shortages, price spikes, or shipping delays. This is the behind-the-scenes work that customers may never see, but it’s the work that builds loyalty.
When you maintain relationships with suppliers, you know when something will be scarce and can plan for alternatives early.
When you track sales, you know which specific products sell better during certain seasons and can plan inventory in advance.
When labor shortages are creating bottlenecks, you can adjust schedules before the pressure builds.
Being proactive means most customers will never see the work behind those decisions, and that’s the goal.
Smooth Operations Create Room for Growth
When internal operations run smoothly, you create the perfect conditions for faster growth. Think about how much time and energy is wasted when you’re constantly putting out fires. Before you know it, your whole day can get derailed. But when your daily operations run like clockwork, you and your team can focus on long-term goals, new opportunities for expansion, and strengthening customer relationships. Growth becomes more manageable because the foundation is stronger.
The Little Things Add Up to Create a Business to Rely On
Building customer loyalty isn’t complicated when you focus on the quiet discipline of planning and preparation. Customers may never see your internal hiccups or the behind-the-scenes work that keeps the business moving, but they definitely feel it. When orders arrive on time, when products are always available, when teams show up as scheduled, and when customers feel heard and supported. It’s these small actions repeated consistently over time that keep customers coming back.
by Amanda O'Brien | Accounting News, News, Newsletter, Retirement, Retirement Savings, Small Business
When it comes to reinvesting in their businesses, small business owners are pros. Buying equipment, hiring employees, and upgrading systems tend to come naturally. But setting money aside for retirement? That often gets put in the “later” category.
Here’s the problem with that approach: there’s no HR team enrolling you in a plan, and there’s no employer match unless you create one yourself. You need to be intentional about building a retirement plan. Here are some strategies to help you build retirement savings while reducing your tax burden.
Start with a 401(k)
A traditional 401(k) is a good starting point because it allows you to contribute a portion of your income before taxes, which lowers your current taxable income. And what makes it particularly enticing for small business owners is the ability to contribute as both the employee and employer. That means higher total contributions compared to other retirement accounts. These plans come with rules, nondiscrimination testing, and reporting requirements, so the setup is a little more complex, but the savings potential makes it worth your time and attention.
Consider a Roth 401(k) for Future Flexibility
A Roth 401(k) works differently than a traditional 401(k). You pay taxes on contributions now, but withdrawals later are tax-free. This can be useful if you expect to earn more in the future, or if you expect taxes to increase.
Many business owners contribute to both a traditional and Roth 401(k) so they’re not relying on one tax outcome.
SEP-IRA Offers Simplicity
The SEP-IRA is simple to open, easy to maintain, and has no annual filing requirements. Business owners can contribute up to 25% of your net income each year, and contributions can be made up until your tax filing deadline. This is helpful if your income varies.
If you have employees, you’ll have to contribute the same percentage for them as you do yourself, so keep this in mind as your team grows. But for solo entrepreneurs and smaller operations, this is a solid choice.
Solo 401(k): Flexibility for Owner-Only Businesses
If you don’t have employees (other than a spouse), the Solo 401(k) is worth looking into. Like a traditional 401(k), you can contribute as both employee and employer. That often allows you to save more compared to a SEP-IRA at similar income levels.
Many plans also offer Roth IRA contributions and loans against the account if you ever need extra funds, offering both flexibility and control.
Think About Combining Strategies
In most cases, using more than one strategy makes the most sense for small business owners, particularly if you have multiple income streams. For example, you might contribute to a 401(k) through your main business and use another plan for side income.
Making multiple strategies work together comes down to knowing how the plans fit together and staying within contribution limits. The rules can get complicated, so working with a professional can help you navigate the best setup, avoid mistakes, and modify your plan as your business grows or your income changes.
by Amanda O'Brien | Accounting News, Financial goals, News, Newsletter, Retirement Savings
Key Takeaways
- Not coordinating 401(k)s can cost couples real money. Research suggests couples who don’t prioritize the highest employer match may lose an average of $14,000 in retirement wealth over their lifetime — not from saving too little, but from saving in the wrong order.
- Always prioritize the plan with the best employer match first. If one spouse’s employer offers a 100% match on the first 4% of contributions and the other offers 50% on 6%, contribute enough to capture the full match from the more generous plan before directing funds elsewhere.
- Regular “money dates” keep both spouses aligned. Scheduling brief, recurring financial check-ins — twice a year or quarterly — ensures couples catch changes like a new job with a better match and can adjust contributions before leaving money on the table.
When couples talk about retirement savings, they often overlook an important detail: how their two retirement plans work together. That small oversight can leave money on the table. Here’s how to coordinate 401(k) plans for the biggest impact.
What the Research Shows About Coordinating 401(k)s and Retirement Savings
Research shows that couples who don’t coordinate retirement contributions may miss out on valuable employer matching contributions. Over time, that missed opportunity can add up. Some estimates suggest couples who don’t prioritize the highest company match lose an average of about $14,000 in retirement wealth over their lifetime.
This isn’t a case of saving too little. It’s a case of not saving in the most strategic way.
Why the Employer Match Matters
An employer matching contribution is a powerful benefit in a workplace retirement plan. Many employers match a percentage of what workers contribute to their 401(k). For example, a company could match 50% on the first 6% of salary, or 100% on the first 3 or 4%.
This is essentially free money straight into your retirement account.
But when both spouses have access to company-sponsored 401(k)s, there are things to be aware of. One employer might offer a higher match than the other. Or one plan might match contributions sooner or at a higher percentage.
If couples treat their savings separately and don’t coordinate, they might just spread contributions evenly between the two plans. That sounds logical, but it might not be the smartest financial move.
In many cases, it makes more sense to prioritize contributions to the account with the highest employer match first.
For example, if one spouse’s employer matches 100% of the first 4% of contributions while the other matches the first 50% of 6%, it usually makes sense to contribute enough to the first plan to realize the full 100% match. Once that match is fully realized, additional contributions can go to the other plan.
This simple shift can increase retirement savings without requiring the need to save more money.
The Value of Money Conversations
The problem couples often run into isn’t math. It’s communication. And miscommunication can create gaps.
For example, one spouse may not contribute enough to receive the full employer match, while the other spouse contributes more than necessary to their plan with a smaller match.
When each spouse operates somewhat independently, and they don’t look at the bigger picture together, they can miss out on money.
The Power of Money Dates
The solution to this miscommunication is simple: talk about money more often. Try setting regular “money dates,” where you both schedule times to sit down and review your finances together. This can be done twice a year or once a quarter – whatever fits your specific circumstances. And it doesn’t need to be complicated. Even just a few minutes catching up on financial goals can ensure that you’re both on the same page.
These conversations can include topics like:
- Retirement contributions
- Employer match rules
- Changes in salary or benefits
- Debt payoff plans
- Upcoming financial goals
For example, if one spouse changes jobs and receives a better 401(k) match, a smart strategy would be to shift more contributions to that account.
Retirement planning isn’t just about how much you save. It’s also about how you save. And one simple question that isn’t always asked: Which 401(k) gives us the best match?
