Nick Magone, CPA, CGMA, CFP®

Taking Tax Advice from Social Media? Think Again

December 5, 2025 by Nick Magone, CPA, CGMA, CFP®

If a tax credit or deduction sounds too good to be true, it probably is.

There’s been a dramatic spike in suspicious refund claims, thanks to misleading social media advice and criminals posing as tax professionals. In fact, social media fraud even popped up on the IRS’ “Dirty Dozen” list, urging taxpayers to steer clear of bogus offers or advice.

Social media schemes aim to fool innocent scrollers with deceptive content, ranging from non-existent Employee Retention Credits (ERC) to elaborate phishing operations designed to steal personal information. What makes them even more dangerous is how legitimate they appear, often using official-looking graphics as they prey on people’s financial stress and vulnerabilities with the promise of easy money.

Heeding the red flags

As CPAs, we’ve pretty much seen it all. Here are some false social media claims to watch out for:

Influencer endorsements without disclosure of paid partnerships
Cryptocurrency-related tax “loopholes” that promise to eliminate tax liability
System “glitches” that allow people to claim credits multiple times
Foreign tax haven schemes to avoid U.S. taxes
“AI-powered” tax strategies that claim to find hidden deductions

These scams tend to follow predictable patterns. They may post a universal claim like, “This is the credit the IRS doesn’t want you to know about!” Or they may offer an unrealistic promise like getting your refund in 24 hours. But any post that requests your personal information and the pressure to act immediately should be treated as a clear warning sign.

Putting up a solid defense

Social media is great for many things, but tax planning isn’t one of them. Always proceed with caution:

Research independently. If you see a tax strategy advertised online, research it through official IRS publications and consult with a qualified professional about its validity before making any moves. Remember, legal tax strategies require documentation. If someone tells you record-keeping isn’t necessary, walk away.
Don’t share information online. When it comes to taxes, the IRS will never contact you via email, social media or text. And legitimate tax professionals will only conduct business through secure, encrypted channels and established office locations — not over Facebook.
Always verify credentials. Only work with licensed tax professionals who are credentialed through state licensing boards and other professional organizations.
Trust your instincts. Nobody is giving away free money. Scammers rely on creating urgency and FOMO, so taking time to think things through is one of your strongest defenses.

Social media tax schemes can cost you big money, hefty penalties, damaged credit and even your dignity. Don’t hesitate to reach out to the tax professionals at Magone & Company for support.

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 unique circumstances.

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

November 21, 2025 by Nick Magone, CPA, CGMA, CFP®

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.

What the One Big Beautiful Bill Means for Your Business

November 7, 2025 by Nick Magone, CPA, CGMA, CFP®

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.

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

November 7, 2025 by Nick Magone, CPA, CGMA, CFP®

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.

Maximizing the Tax Benefits of Your Remote Workforce

October 24, 2025 by Nick Magone, CPA, CGMA, CFP®

The pandemic fundamentally altered how many U.S. businesses operate. Distributed teams and flexible arrangements have become permanent fixtures rather than temporary fixes.

For employers and workers, this also means new opportunities and challenges for tax planning and compliance.

The reality of remote workers

Companies have discovered that productivity doesn’t require physical proximity. In fact, 60% of remote workers report their flexible work arrangement has boosted their ability to get work done and meet deadlines. This proven effectiveness means that today’s employers may have teams spanning cities and states, creating complex tax implications that extend beyond traditional office-based considerations.

Comprehensive tax credit and incentive (TC&I) analysis has become essential for businesses supporting remote teams. These specialized programs provide detailed assessments of available opportunities, breaking down qualification requirements and implementation strategies tailored to your specific business model.

TC&I experts examine your operations, identifying federal, state and local programs that align with your workforce distribution, ensuring you’re capturing every available benefit while maintaining full compliance across all jurisdictions where your employees work.

Navigating the nexus challenge

Before your businesses can capitalize on these opportunities, you must establish and manage nexus obligations.

State tax nexus determines where your business has sufficient connection to warrant tax obligations, and remote employees can create these connections in states where you’ve never maintained a physical presence.

Each state has different standards for establishing nexus through employee activities. Some require minimal employee presence to trigger obligations, while others have higher thresholds. Getting nexus right requires a proactive approach:

Conduct regular nexus assessments. Implement regular reviews of employee locations and activities to identify new potential nexus obligations before they become compliance issues.
Establish clear remote work policies. Develop guidelines that address tax implications of employee relocations and temporary work arrangements.
Engage multi-state tax professionals. Partner with specialists who understand the nuanced requirements across different jurisdictions.

Credits that reward a remote work strategy

Once your nexus obligations are properly managed, the evolving work landscape has expanded access to numerous tax credit opportunities for remote employers. For example:

State-specific remote work incentives. Various states offer credits for companies hiring remote workers or relocating operations.
Home office deduction optimization. While limited for employees, businesses can structure arrangements to maximize legitimate office-related deductions.
Technology investment credits. Many jurisdictions offer incentives for investments in equipment and software that enable remote collaboration.
Economic development incentives. Location-specific credits may be available when remote workers are based in designated economic zones.

Making the most of your remote workforce

Regular assessment of your workforce distribution, combined with strategic implementation of available credit programs, positions your business to thrive. Learn how the experts at Magone & Co can help. Reach out or give us a call today at (973) 301-2300.

Why Cyber Criminals Love Small Businesses (And How to Make Them Think Twice)

October 10, 2025 by Nick Magone, CPA, CGMA, CFP®

Remember the big Target data breach a few years ago?

Hackers didn’t just wake up one day and decide to attack the retail giant directly. Instead, they strategically planned and infiltrated a small HVAC contractor that serviced Target’s stores, using that access point to compromise over 41 million customer records.

Cybercriminals continue to view small businesses as stepping stones to bigger prizes — and your sensitive data makes your small business an attractive entry point.

The small business cybersecurity gap

Forty-seven percent of businesses with fewer than 50 employees have no cybersecurity budget. Even more alarming, 51% have no cybersecurity measures in place at all.

Small business owners wear many hats, juggling multiple responsibilities and often lacking the resources to stay on top of evolving security threats. Small businesses typically store valuable financial information — including tax records, employee data and customer payment details — while maintaining fewer security protocols than larger corporations.

When small businesses suffer breaches, the consequences ripple through the economy and impact countless livelihoods. Beyond the immediate financial losses, these attacks can force business closures, eliminate jobs and erode customer trust.

The good news? You don’t need a Fortune 500 budget to build a strong defense against cybercriminals. Check out 10 ways to help protect the sensitive data that your business needs to operate:

Maintain current software. Regular software updates are your first line of defense. Configure devices and applications to update automatically, ensuring you have the most updated security measures in place.
Implement strong authentication practices. Replace simple passwords with memorable passphrases that combine multiple unrelated words and symbols. Layer this protection with multi-factor authentication to make it as secure as possible.
Deploy anti-malware protection. Invest in reputable antivirus software and ad-blocking tools. These solutions actively scan for and neutralize threats before they can compromise your data.
Establish secure network connections. Utilize Virtual Private Network (VPN) services to encrypt your internet traffic, especially when accessing financial data remotely. This encryption makes intercepted data virtually unreadable to attackers.
Have backup systems in place. Maintain and secure backups of all critical documents and financial records. Store these backups on separate devices or in a cloud service that remains walled off from your primary systems.
Secure email communications. Since data often travels via email, implement encryption protocols and consider using secure file-sharing platforms for sensitive document transmission.
Limit access and permissions. Grant employees access only to the sensitive information necessary for their specific roles. Regularly audit these permissions, especially as employees move into new roles or leave the company.
Develop an incident response plan. In advance of a possible breach, make sure you have detailed procedures nailed down, including steps for containing threats and notifying impacted parties.

Turning knowledge into protection

Protecting your tax data is essential for small business survival. Be proactive in preparing your business for whatever the future may bring. Questions about how we protect our clients’ data? Don’t hesitate to reach out.