Blog – Ned Jackson Tax

YOUR GUIDE TO THE ONE BIG BEAUTIFUL BILL

by Susan Brown | Jul 24, 2025 | Blog

Ned Jackson Tax Service: Your Guide to the One Big Beautiful Bill (OBBB) Tax Updates

Welcome back to Ned’s Blog Spot, where we keep you informed about the latest tax changes to ensure your filing experience is smooth and stress-free! The recently passed One Big Beautiful Bill Act (OBBB), signed into law on July 4, 2025, brings significant updates to the U.S. tax code, building on the 2017 Tax Cuts and Jobs Act (TCJA). At Ned Jackson Tax Service, we’re here to break down the key changes that could impact you, your family, or your business. Read on to learn what’s new and how we can help you navigate these updates. For personalized assistance, visit us at nedjacksontax.com or call us at 904-356-0349.

Key OBBB Tax Provisions for Individuals and Businesses

The OBBB introduces a mix of permanent extensions and new provisions to the TCJA, alongside temporary changes that affect deductions, credits, and more. Here’s what you need to know:

Permanent Tax Brackets and Standard Deduction Increases

Income Tax Rates: The OBBB locks in the TCJA’s individual income tax rates (10% to 37%), preventing a scheduled increase to 39.6% for top earners. This ensures predictable tax planning for years to come.
Standard Deduction: The standard deduction is permanently set at $15,750 for single filers and $31,500 for married couples filing jointly, with annual inflation adjustments. A temporary boost of $1,000 (singles) or $2,000 (joint filers) applies for 2025.
Senior Bonus Deduction: Taxpayers aged 65+ can claim an additional $6,000 deduction starting in 2025, making it easier for retirees to reduce taxable income.

State and Local Tax (SALT) Deduction Increase

The SALT deduction cap, previously $10,000, rises to $40,000 for 2025–2029, benefiting those in high-tax states like Florida. However, this cap phases out for incomes above $500,000 and reverts to $10,000 in 2030.
Implication: If you itemize deductions, this could allow for greater tax savings, especially for property taxes. Our team at Ned Jackson Tax Service can help determine if itemizing is right for you.

Qualified Business Income (QBI) Deduction Made Permanent

The 20% QBI deduction for sole proprietors, S-Corps, and independent contractors (like many Jacksonville small business owners) is now permanent, with expanded phaseout ranges for higher earners.
Why It Matters: If you’re self-employed or own a pass-through business, this deduction remains a powerful tool for reducing taxable income. Let us help you maximize it!

Research & Development (R&D) Expense Deductions

Starting in 2025, domestic R&D expenses can be immediately deducted, reversing the TCJA’s requirement to amortize them over five years. Small businesses with average annual gross receipts under $31 million can retroactively expense R&D costs for 2022–2024 by filing amended returns.
For Tech Companies: This change is a game-changer for Jacksonville startups and tech firms investing in innovation. Contact us to see if you qualify for retroactive savings.

100% Bonus Depreciation Returns

Businesses can deduct 100% of the cost of qualified property (e.g., equipment) placed in service from January 20, 2025, through 2030. The Section 179 deduction cap also increases to $2.5 million.
Opportunity: If you’re planning business investments, this provision can significantly lower your tax bill. Our experts can guide you through cost segregation and depreciation strategies.

New Deductions for Tips, Overtime, and Auto Loans

Tips and Overtime: From 2025–2028, you can deduct up to $25,000 of qualified tips and overtime pay without itemizing, though Social Security and Medicare taxes still apply.
Auto Loan Interest: A new deduction allows up to $10,000 for interest on loans for U.S.-assembled cars, also effective 2025–2028.
Who Benefits: Service industry workers, hourly employees, and new car buyers in Jacksonville can see tax relief. Let us help you claim these deductions correctly.

Child Tax Credit and Charitable Giving

The Child Tax Credit increases to $2,200 per child in 2025, with the $1,400 refundable portion made permanent and inflation-adjusted.
Non-itemizers can deduct up to $1,000 (singles) or $2,000 (joint filers) for charitable cash donations starting in 2026. However, itemized charitable deductions now face a 0.5% AGI floor.
Planning Tip: Families and donors, we can help you optimize these credits and deductions for maximum benefit.

Estate and Gift Tax Exemption

The estate and gift tax exemption rises to $15 million per person ($30 million for couples) in 2026, indexed for inflation, offering significant planning opportunities for high-net-worth clients.

Economic Impact of the OBBB

The OBBB is projected to boost long-run GDP by 1.2% but increase federal deficits by $3.8 trillion over the next decade due to $5 trillion in tax revenue reductions offset by $1.1 trillion in spending cuts. The debt-to-GDP ratio will rise from 117.1% to 126.7% by 2034, which could impact future tax policies. At Ned Jackson Tax Service, we’ll keep you updated on how these changes affect your financial planning.

Why Choose Ned Jackson Tax Service?

Since 1946, Ned Jackson Tax Service has been Jacksonville’s trusted partner for tax preparation, bookkeeping, and notary services. Our experienced team, with over 26 years of expertise per agent, stays current on all IRS updates, including the OBBB’s complex provisions. Whether you’re an individual, small business, or corporation, we provide personalized, accurate, and proactive tax solutions to maximize your benefits.

Year-Round Support: Visit our Downtown office or seasonal locations at 2805 Dunn Avenue, 6510 Beach Blvd, or 5860 Normandy Blvd (reopening January 2026).
Expert Planning: We identify tax-saving opportunities well before filing season, ensuring you’re prepared.
Contact Us: Call 904-356-0349 or email info@nedjacksontax.com to schedule an appointment. Check out our services at nedjacksontax.com.

Stay Informed with Ned’s Blog Spot

Tax laws are complex, and the OBBB adds new layers to navigate. Don’t get blindsided this tax season! Visit our blog at nedjacksontax.com for monthly updates or follow us on social media for the latest tax tips. Have questions about how the OBBB affects you? Our team is ready to help. Call us today at 904-356-0349 to book your consultation.

Let Ned Jackson Tax Service guide you through the One Big Beautiful Bill and beyond—because your taxes deserve the best care in Jacksonville!

Left Wing Ballot Bid

by Susan Brown | Sep 25, 2024 | Blog

Welcome back to Ned’s Blog Spot, where you can find all your tax tips and tricks. Our tax deadline is quickly approaching, and we want to make sure we provide you with all the information we can, for your filing to be as quick and painless as possible. Below you’ll find a few quick tidbits about he upcoming tax season.

Election Day is quickly approaching, and taxes are on the ballot. Kamala Harris is sticking with this pledge: no tax hikes if you make less than $400,000. This would mean she would be extending the tax breaks in the 2017 law to people earning less than $400,000, which are most tax payers. Some of her ideas for taxes are new, while others are revamped. If Harris gets her way, she would bring back the top 39.6% income tax rate for people making $400,000 or more and hike the 3.8% net investment income surtax to 5%.

The next proposal by the Harris/Walz administration would have the wealthy paying more in capital gains tax. Long-term capital gains tax would be imposed at ordinary tax rates up to 39.6% for taxpayers with taxable incomes over $1 million. Similar to Biden, she has proposed taxing unrealized gains upon death. This proposal would treat death as a realization event for income tax purposes, with capital gains and losses reported on the deceased final income tax return… with a $5 million lifetime gain exclusion.

On the issue of families, first-time home buyers, tipped workers, these are for you. The child tax credit will be raised from $2000 to $3600 per child, with monthly payments and full refund ability. And more than that, she would give taxpayers a one-time child credit of $6000 to be claimed on the parent’s tax return for the first year of the child’s life. For first time homebuyers, she has proposed a credit of up to $10,000. And for our tipped workers, she plans to make tipped income, tax free.

In the area of business taxes, Harris wants to raise the 21% corporate tax rate to 28%. She would increase the 15% alternative minimum tax on very big corporations to 21%. She’d do away with what she and many Democratic lawmakers see as a tax loopholes, while keeping the green-energy tax subsidies enacted in the Inflation Reduction Act. There has been radio silence on what she plans to do with the state and local tax deductions that itemizers claim on their schedule A. Lastly, it’s been reported that some Capitol Hill lawmakers from high-tax states are pressuring leadership to get rid of the current $10,000 cap on SALT write-offs.

We hope you find this information helpful as you begin to prepare for the upcoming tax season. If you have ny questions, the information for our downtown office will e listed below and don’t forget to check back for more!

Ned Jackson Downtown Office

Address

255 N Liberty Street
Jacksonville FL, 32202

Phone

(904)356-0349

Info@nedjacksontax.com

Hobby Losses & Teacher Tax Breaks

by Susan Brown | Sep 4, 2024 | Blog

Welcome back to Ned’s Blog Spot, where you can find all your tax tips and tricks. Our tax deadline is quickly approaching, and we want to make sure we provide you with all the information we can, for your filing to be as quick and painless as possible. Below, you will find a few quick tidbits about the upcoming tax season. This month, we have tidbits surrounding hobby losses and teacher tax breaks.

Hobby Losses

If you are reporting large losses from hobby activity reported on your Schedule C to help offset wages, business earnings or other income, the IRS is on the hunt for you. Reporting hobby losses is an audit red flag. Revenue collected from a hobby is taxable, but you cannot deduct expenses. The 2017 tax law temporarily nixed, through 2025, miscellaneous itemized deductions subject to the 2%-of-adjusted-gross-income threshold, including hobby losses. To deduct a Schedule C loss, you must show the activity is a business. The activity needs to be conducted with continuity and regularity in a businesslike manner and must have a reasonable goal, to make a profit from it. IRS regulations provide a safe harbor. If your activity generates profit in three out of five consecutive years, the law presumes you’re in business to make a profit unless IRS establishes otherwise. The hobby business analysis can be a bit trickier if you cannot meet the safe harbor. This is due to the determination of whether an activity has been categorized properly as a hobby or a business activity. To determine this, the IRS looks at nine factors:

1. Expertise of the taxpayer and advisers

2. Manner in which one carries on the activity

3. Time and effort devoted to the venture

4. Expectation that assets used in the activity may appreciate

5. History of income and losses

6. Amount of occasional profits

7. Success in carrying on other activities

8. Elements of personal pleasure or recreation that one gets from the activity

9. Whether the tax payer has substantial income from other sources, such as wages

If you are unsure of whether you are a hobby or a business, or further questions about hobby losses, please visit: https://www.irs.gov/newsroom/know-the-difference-between-a-hobby-and-a-business

Teacher Tax Breaks

With school just starting back, we wanted to make sure and let our teachers know about this tax break: The educator expense deduction. Teacher can now deduct up to $300 for the cost of their us reimbursed expenses. This is an above-the-line deduction taken on schedule 1 of the 1040. You do NOT have to itemize on Schedule A to claim it. The cap is $600 for spouses who are both teachers and file a joint federal tax return. Homeschooling parents, unfortunately, do not get the break. It’s available only to K-12 educators who work 900+ hours during a school year in elementary or secondary school. Among eligible expenses:

– Professional development fees

– Books and supplies

– Materials for the classroom

– Computer software

– COVID-19 protective items

We hope you find this information helpful as you begin to prepare for the upcoming tax season. If you have any questions, the information for our downtown office will be listed below and don’t forget to check back for more!

Ned Jackson Downtown Office

Address

255 N Liberty Street

Jacksonville, FL 32202

Phone

(904) 356-0349

Email

info@nedjacksontax.com

The Trifecta: Tax Cuts, Tips, and Trump

by Susan Brown | Aug 14, 2024 | Blog

In the spirit of election year, this trifecta comes at a good time. Former President Donald Trump recently released his tax policy on his Truth Social platform.

“SENIORS WILL NOT PAY TAX ON THEIR SOCIAL SECURITY” For our readers who don’t know… in 1984, President Ronald Reagan, signed legislation that began the taxation on Social Security. Seniors who receive income in addition to Social Security could be taxed on up to 85% of their social security income. Earlier this year, Rep. Angie Craig (D-MN), introduced new legislation that would eliminate the federal tax on Social Security.

It’s no secret that tax stakes are high in November’s election. Many of the tax provisions in the 2017 tax reform law are set to end after 2025 and revert to the rules that were in effect for 2017, unless law makers act. Our next president will have the job of confronting the dreaded “2025 Tax Cliff.” Donald J. Trump proposes several ideas when it comes to federal taxes. Those ideas are below:

Make the 2017 tax change permanent, and further lower taxes for individuals and businesses.
Hospitality and restaurant workers would get a boom, by way of NO TAX ON TIPS.
Using tax incentives and credits to help promote homeownership
Dropping the 21% corporate tax rate to 20% or lower for business taxes

As of this posting, Vice President Harris has not released any of her policies other than to raise the corporate tax rate to 28%. We will post her policies that affect tax filing as soon as she releases them.

Ned Jackson Downtown Office

Address

255 N Liberty Street

Jacksonville, FL 32202

Phone

(904) 356-0349

info@nedjacksontax.com

Rental Revisions

by Susan Brown | Jul 20, 2024 | Blog

If you earn income from rental properties, you may be eligible to claim a 20% qualified business income (QBI) deduction. One of the ways you can do that is for your rental activity to rise to a level equivalent to that of a trade or business. Another way, is to meet an IRS safe harbor. The safe harbor states that “at least 250 hours must be devoted to the rental activity by the taxpayer”.

The hours allowed under the safe harbor are as follows: time spent on tenant services, repairs, property management, advertising, collecting rents, negotiating leases, and supervising workers counts. And of course, with allowances, come exclusions. Hours you put in for driving to and from property, arranging financing and construction long-term capital improvements are NOT included. Additionally, the safe harbor does NOT apply to property leased under a triple net lease or if the owner’s personal use exceeds the greater of 14 days or 10% of the days rented. If you own multiple rental properties, you can treat each one separately, or group similar rental activities into categories, such as commercial vs residential.

When you come in, to file for the safe harbor, please make sure you have detailed, adequate records. There is a strict recordkeeping requirement, as it pertains to the safe harbor. You will be required to attach an annual statement to your returns. The details of this statement are outlined in Rev. Proc. 2019-38 (https://www.irs.gov/pub/irs-drop/rp-19-38.pdf). Synchronous records must detail hours, dates and descriptions of services and who performed them. If the services are contracted out or performed by employees, the taxpayers must keep logs of the work done by them, as well as proof of payment.

Ned Jackson Downtown Office

Address

255 N Liberty Street

Jacksonville, FL 32202

Phone

(904) 356-0349

info@nedjacksontax.com

New Filing Requirements – 2024 Tax Year

by Susan Brown | Jun 17, 2024 | Blog

Welcome to Ned’s Blog Spot, where you can find all your tax filing tips and tricks. While our tax deadline is still a way away, there are some new filing requirements that you’ll want to know of and prepare for before the new year. Wondering if this applies to you? Keep reading to find out!

This new filing requirement is brought to us by “The Corporate Transparency Act.” This act requires certain types of U.S. and foreign entities to report beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury. Beneficial ownership information is information about the entity, its beneficial owners, and in certain cases its company applicants. Beneficial ownership information is reported to FinCEN through Beneficial Ownership Information Reports (BOIRs). This will include all companies registered with secretaries of the states, such as LLC, CORP, S.CORP, and PARTNERSHIPS.

Due Dates:

– Established before Jan 1,2024 = Due Jan 1, 2025
– Established on or after Jan 1, 2024 = Due w/in 90 days
– Established on or after Jan 1, 2025 = Due w/in 30 days

Filing Instructions:

https://boiefiling.fincen.gov/resources/BOIR_Filing_Instructions.pdf

Application Site:

https://www.fincen.gov/boi

Ned Jackson Downtown Office

Address
255 N Liberty Street
Jacksonville, FL 32202

Phone
(904) 356-0349

Email
info@nedjacksontax.com

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