Deadlines, Updates & More!
Here at The Queen Bee Bookkeeping, we stay on top of things for you. From deadlines, to tax law updates and more, you can find it all here on our Newsletter. See a topic you want to learn more about? Send us a message - we'd love to help!
Update on SALT Deduction
Did you hear about the new tax law update surrounding the SALT (state and local taxes) deduction? Starting in year 2025, you are now allowed to deduct certain state and local taxes you've paid. These include real estate taxes, income taxes, and even sales tax. The annual limit rose from $10,000 to $40,000, starting in 2025 for certain filers.
Annual Limits:
- Married filing jointly $40,000
- Married Filing Separately $20,000
- Head of Household $40,000
- Single $40,000
To claim this deduction, you must be taking the itemized deduction. If you are not a home owner, with real estate taxes and high mortgage interest - this deduction most likely will not apply to you.
How do you know if you itemize? The following deductions must add up to over the standard deduction for your filing status.
Qualified Medical Deductions - must have spent at least 7% of your adjusted gross income on qualified medical expenses to deduct these
SALT - state and local taxes, up to the previously mentioned limits
Mortgage Interest - you can deduct your mortgage interest on your outstanding mortgage. This starts to get phased out the higher your outstanding balance is, which begins at $750,000
Donations - you are allowed to deduct donations made to qualified 501(c)3 charities, this includes cash and non cash donations. Keep in mind, this deduction also gets phased out depending on your AGI.
If all of these categories sum up to above your filing status standard deduction for 2025, you are qualified to Itemize and pass on the standard deduction. Thus meaning, you get to take advantage of the higher SALT deduction.
2025 Standard Deductions:
Married Filing Jointly $31,500
Married Filing Separately $15,750
Head of Household $23,625
Single $15,750
This new SALT update will last from 2025 through 2030. A new tax law in the future could extend this update or change it completely. Check back here in the future to stay on top of tax law updates.
Want to know if you qualify to take advantage of this new deduction? The Queen Bee Bookkeeping & Tax can determine that for you. Please inquire to learn more about tax preparation and tax planning!
Deadlines are coming sooner than you think, act now:
1099 DEADLINE
The first deadline of the year is January 31st, 2026. All 1099's must be issued to your contractors by then. We provide 1099 preparation and filing to take the burden off of you. Reach out today to find out more!