We're excited to announce the latest version of our platform, introducing two powerful new tax strategies that are part of the OBBB (One Big Beautiful Bill) strategies introduced by the US government. These strategies help service workers and hourly employees maximize their tax savings and are designed to support workers in tip-dependent and overtime-heavy industries by providing significant tax relief opportunities.
New Features
No Tax on Tips Strategy
We're pleased to introduce the No Tax on Tips Tax Strategy, designed to help service workers calculate potential savings from the proposed elimination of taxes on tip income.
- Real-Time Tip Recording: Recorded tips on a real-time basis, thus providing relief from the burden of having to recollect tip information at the end of the year.
- Tip Income Deduction: Calculate deductions on tip income up to $25,000 from taxable income, allowing service workers to keep more of what they earn from customer gratuities.
- Universal Access: This deduction is available to both itemizers and non-itemizers, providing broad tax relief for tip-dependent workers.
- Service Industry Focus: The strategy recognizes that tips are often unpredictable income and reduces the tax burden specifically on service industry earnings.
No Tax on Overtime Strategy
We're also launching the No Tax on Overtime Tax Strategy, enabling workers to estimate tax savings from the proposed elimination of taxes on overtime pay.
- Comprehensive Tracking: Wages, work hours, and overtime hours can be tracked weekly, monthly, quarterly, and annually, making it easy to get real-time data on tax savings and helping make informed overtime planning decisions.
- Overtime Premium Deduction: Deduct the premium portion of overtime pay up to $25,000 from taxable income, making overtime work more financially rewarding.
- Filing Status Support: The strategy includes comprehensive filing status support to ensure accurate calculations for all taxpayers.
- Enhanced Work Incentive: Turns additional work effort into both higher take-home pay and reduced tax liability, benefiting hardworking employees.
- Non-Itemizer Friendly: Available even to non-itemizers, providing direct tax relief for those putting in extra hours.
We hope these new strategies provide valuable tax planning opportunities for your service industry and hourly worker clients. As always, we are committed to continuously improving your experience and appreciate your feedback. Stay tuned for more updates!