new tax - Linkenheimer LLP CPAs & Advisors

The One Big Beautiful Bill: What It Means for You (and Your Business)

Congress just gift-wrapped a 1,000-plus-page “One Big Beautiful Bill Act” (yes, that’s the real name) and sent it to President Trump for signature on July 4th (because nothing says “patriotic” like a 900-plus-page tax law.). Fireworks ensued, literally and legislatively. Below is the quick-and-casual download on the provisions our clients are most likely to feel—whether you’re filing as an individual, running a business, or both.

Key Changes for Individuals

Bigger, permanent standard deduction and TCJA-era brackets – Beginning in 2026, the deduction rises to $15,750 (single) and $31,500 (joint) while today’s lower rates stick around. Most filers will see more income sheltered from tax without having to itemize.
SALT cap balloons to $40,000 for 2025-2029 – High-tax-state residents can deduct up to four times more in property and state income taxes for five years. Plan to prepay or “bunch” taxes during this window to maximize savings before the cap snaps back.
New $6,000 “senior deduction” (ages 65+) – Available 2025-2028 on top of the standard deduction. Retirees may owe less federal tax even if their income stays level.
Child Tax Credit increases to $2,200 and is indexed for inflation – With the refundable portion […]

By Linkenheimer LLP|2025-07-15T19:02:52+00:00July 14th, 2025|new tax, News, tcja|0 Comments

FUTA Tax – Credit Reduction for 2012

For the second year running, California is a credit reduction state. This means “we” have taken loans from the federal government to meet state unemployment benefit liabilities and have not repaid those loans within the allowable time frame.

The result of being an employer in a credit reduction state is higher tax due on the Form 940. For the year ended December 31, 2012, the calculation results in $42 per employee as additional FUTA liability, bringing total FUTA tax per employee to $84 for the year. The increased liability is considered incurred in the fourth quarter and is due by January 31 (with other annual payroll report filings). For those filers that we process, explanation is provided with their reports. Those who run reports off Quickbooks are often puzzled that the balance due with Form 940 is so much higher than last year. Help them not to be puzzled.

As a practical matter, there is no predicting whether CA will be a credit reduction state again in 2013 (any bets on whether “we” repay those loans in the coming months?).

In 2011, the credit reduction liability resulted in an additional $21 per employee.
For 2012, the hit is […]

By Linkenheimer LLP|2020-09-03T20:05:52+00:00January 11th, 2013|2012, 2013, ca, credit reduction, employer, FUTA, new tax|0 Comments