LAT Financial Group

H.R. 1 keeps the Form 1099-K reporting requirement: payors must report payments via card, third-party networks, etc.

The threshold remains 200 transactions and at least $20,000.

Additionally, H.R. 1 raises the threshold for 1099-MISC and 1099-NEC reporting from $600 to $2,000 (starting 2026) for service payments.

Make sure your preparers understand when 1099-K applies and which reporting rules shift in 2026+.

Grab your tax updates here: taxiqacademy.com

Under H.R. 1, the Child Tax Credit maximum jumps from $2,000 to $2,200.

& the credit is indexed for inflation.

However—the refundable portion is $1700. Make sure you and your team knows the difference between the refundable portion (ACTC) and the non-refundable portion (CTC).

Grab your courses here: taxiqacademy.com

H.R. 1 creates “Trump Accounts”, a tax-advantaged savings vehicle for children👶🧒.

Key points:
✅You can contribute up to $5,000 per child per year.
✅Employers can also contribute, up to $2,500 toward employees’ children’s accounts.
✅Government gives $1,000 seed for children born between Jan 1, 2025 and Dec 31, 2028.
✅Earnings inside the account grow tax-deferred.
✅Contributions are not deductible.

This is a long-term play—use it in client planning with kids.

Learn the specifics with our Updates course at taxiqacademy.com

H.R. 1 introduces a deduction for qualified overtime pay (the extra half-time portion, etc.), up to $12,500 (or $25,000 married filing jointly).

It phases out for higher-income taxpayers: MAGI above $150,000 (single) and $300,000 (joint).

Employers must report the overtime separately (on W-2, 1099, etc.).

This is effective 2025 through 2028 under current law.

Get your updates at taxiqacademy.com

💡 Big win for tipped workers under H.R. 1: beginning in 2025, there’s an above the line deduction for “qualified tips” (up to $25,000) for occupations that customarily receive tips.

⚠️ This doesn’t eliminate requirement to report the tips, and Social Security / Medicare taxes still apply.

🧮 The deduction phases out: for singles, MAGI above $150,000; for joint, above $300,000.

Train your preparers on which occupations qualify, how to claim the deduction, and how to handle phase-outs.

Grab our updates course as we break these changes down entirely: taxiqacademy.com

Another 🚨 H.R.1 update:

Personal exemptions are gone permanently.❌

In their place a temporary $6,000 Senior Deduction beginning in 2025🎉

This is a major shift for older taxpayers.

📘 Get fully updated with IRS-approved CE: taxiqacademy.com

H.R.1 expanded the QBI deduction:

Phase-out limits rise to $75,000 (single) and $150,000 (MFJ). Was? $50k/$100k!

This gives more taxpayers access to one of the most valuable small business deductions.

📚 Learn the details inside our IRS-approved courses: taxiqacademy.com

👏 Big tax update for adoption cases:

Beginning tax year 2025, up to $5,000 of the Adoption Credit is refundable🎉🎉.

Starting 2026, that refundable portion will adjust for inflation annually.

This shift makes adoption support more financially accessible.

🔗 Learn more at taxiqacademy.com

💡 Refundable vs Nonrefundable Credits:

➡️Refundable: Pays out even with no tax liability. REFUND
➡️Nonrefundable: Stops once the tax bill hits zero. NO REFUND on overage

This knowledge helps maximize every client’s return.

📘 Get clarity inside our AFSP 18-hour Personal Income Tax bundle at taxiqacademy.com