Archives for November 2025

New Tax Break: Deduct Interest on Your Car Loan Through 2028

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Planning to finance a car, truck or SUV in the near future? There may be some good news waiting for you come tax time.

Thanks to a temporary tax break, eligible buyers can deduct the interest paid on qualifying loans on vehicles financed between now and 2028.

Before you head to the dealership, here’s a breakdown of what you need to know to take advantage of this opportunity.

How much can you deduct?

The new deduction allows you to claim up to $10,000 per year in interest paid on qualifying vehicle loans. It’s an “above-the-line” deduction, meaning it reduces your adjusted gross income whether you itemize or take the standard deduction.

If you’re eligible, you can claim the deduction annually for interest paid each year through 2028.

But if your modified adjusted gross income hits certain limits, you’re out of luck:

  • $100,000 for single filers
  • $200,000 for married filing jointly

What vehicles qualify?

To be eligible for this deduction, your vehicle must check the following boxes:

  • A new car, minivan, van, SUV, pickup truck or motorcycle
  • Gross vehicle weight rating under 14,000 pounds
  • Final assembly in the U.S.

What are the loan requirements?

The loan must be originated between January 1, 2025, and December 31, 2028, and used exclusively for personal use only (no business or commercial vehicles). Plus, you’ll need to list the vehicle’s VIN on your tax return when claiming the deduction.

Making the most of this opportunity

The requirements are specific, but the potential tax savings could be worth it. Be sure to keep detailed records of your interest payments and ensure your vehicle meets all requirements.

Need help keeping more of what you earn? Tax planning can help. Reach out or give us a call today at (973) 301-2300.

 

This document is for informational purposes only and should not be considered tax or financial advice. Be sure to consult with a knowledgeable financial or legal advisor for guidance that is specific to your situation.

What the One Big Beautiful Bill Means for Your Business

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The One Big Beautiful Bill (OBBB) legislation represents an overhaul of the federal tax landscape, introducing dramatic changes to taxes, credits and deductions that will impact taxpayers across all income levels. And everyone from entry-level employees to Fortune 500 CEOs will be affected.

The good news is that once you wrap your head around these changes, your business may benefit from opportunities to optimize your tax strategy. Here’s what you need to know:

  • Paid family and medical leave credit. Now a permanent credit, employers can choose between two methods for calculating the credit: a percentage of wages paid to qualifying employees during family and medical leave, or a percentage of premiums paid for insurance policies providing paid family and medical leave. Additionally, employers may now elect to include employees with at least six months of service (reduced from one year).
  • Employer-provided childcare credit. Effective in 2026, the OBBB increases the credit percentage for “qualified childcare expenditures” from 25% to 40% for regular businesses and 50% for eligible small businesses. The maximum credit is $500,000 ($600,000 for eligible small businesses). Beginning in 2027, all amounts are subject to annual inflation adjustments.
  • Employee exclusion for employer-paid student loans. The OBBB permanently extends the employee exclusion for qualifying employer student loan payments. Starting in 2026, the current $5,250 maximum exclusion amount will be adjusted annually for inflation.

What’s next?

Stay in the know as additional guidance and regulations are released, and reach out to the tax planning experts at Magone & Company to get your questions answered.

This document is for informational purposes only and should not be considered tax or financial advice. Be sure to consult with a knowledgeable financial or legal advisor for guidance that is specific to your business situation.

OBBB: From Moving Costs to 529 Plans, Here’s What Changed

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The One Big Beautiful Bill (OBBB) introduced sweeping changes to tax credits and deductions that will impact individuals and families across all income levels.

Whether you’re just starting your career, raising a family or planning for retirement, these changes are likely to impact your bottom line. Here’s what you need to know:

  • Dependent care assistance. The OBBB raises the annual tax-free limit for employer-provided dependent care assistance to $7,500 ($3,750 for married filing separately), effective for tax years beginning after 2025.
  • Moving costs. Also effective for tax years after 2025, the OBBB eliminates the moving expense deduction and exclusion for most taxpayers. Exceptions remain for active-duty armed forces members relocating due to military orders and permanent change of station, as well as a new exception added for U.S. intelligence community employees and appointees relocating due to assignment changes.
  • Bicycle commuting expenses. The OBBB ends the tax-free treatment of employer bicycle commuting reimbursements.
  • 529 plans post-secondary credentialing expenses. The OBBB expands 529 plan qualified expenses to include “post-secondary credentialing expenses.” Eligible credentials include state or federally issued occupational/professional licenses, apprenticeship completion certificates registered with the Department of Labor and credentials defined under the Workforce Innovation and Opportunity Act.
  • Information reporting, Forms 1099-NEC and 1099-MISC. Beginning with 2026 payments, the reporting threshold increases from $600 to $2,000 (with inflation adjustments starting in 2027). Backup withholding requirements are updated accordingly.
  • Tips deduction. There’s a new deduction allowing up to $25,000 for “qualified tips,” phasing out for taxpayers with a modified adjusted gross income (MAGI) over $150,000 ($300,000 joint filers). The IRS must publish a list of tip-receiving occupations and update withholding procedures by 2026. This deduction expires after 2028.
  • Overtime deduction. The new deduction allows up to $12,500 ($25,000 for joint filers) for qualified overtime compensation as defined under the Fair Labor Standards Act, with the same MAGI phaseout thresholds as the tips deduction. This deduction expires after 2028.

Keeping more money in your pocket 

Stay informed as additional guidance becomes available, and consider how these changes might affect your personal tax situation. Don’t hesitate to reach out to the experts at Magone & Company for guidance on optimizing your tax strategy.

This document is for informational purposes only and should not be considered tax or financial advice. Be sure to consult with a knowledgeable financial or legal advisor for guidance that is specific to your business situation.