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I agree with the advice to seek counsel from an attorney in your area.   However, I will add, since there appears to be some confusion, that irrevocable trusts can also be grantor trusts (partial or total). The test for whether a trust is a grantor trust or not is determined by control over the assets in the trust; irrevocable trusts can be grantor trusts (and, in fact , are as evidenced by the proliferation of IDGTs).

SHORT ANSWER !!! If you contribute more to your Roth IRA than your earned income for the year and realize this before the tax filing deadline (including extensions), you typically have two primary options to resolve the excess contribution and prevent penalties:  1. Withdraw the excess contribution before the tax deadline (typically April 15th, or October 15th if you file an extension). 2. Recharacterize the contribution

The One Big Beautiful Bill will be beneficial to you in the following ways: Increased Child Tax Credit:  increased from $2,000 to $2,200 for qualified taxpayers no tax on overtime - deduction of up to $12,500 per taxpayer with phaseout for MAGI over $150,000 (over $300,000 for Married Filing Jointly filers) Hope that helps @Bpasten90 

For tax years 2025 - 2028, taxpayers will be allowed to deduct up to $12,500 ($25,000 if filing jointly) for qualified overtime pay. The deduction phases out for taxpayers with modified adjusted gross income (MAGI) greater than $150,000 ($300,000 for joint filers). This will be a "below the line" deduction, meaning it will not reduce your adjusted gross income that is used for many other tax calculations. The amount that will be deductible is the amount of pay that exceeds your regular rate of pay for time worked in excess of 40 hours in one week. For most individuals, it will be the "half" in "time-and-a-half". To be eligible for the deduction, taxpayers must have a Social Security number (ITINs are excluded), and if married, must file a joint return. Employers will need to report the annual amount of overtime compensation received at the end of the year on an information return. (W-2, 1099, etc.) Starting in tax year 2026, withholding amounts are to be adjusted to reflect the deduction.

The One Big Beautiful Bill introduces a temporary deduction for qualified overtime compensation, for tax years 2025 through 2028. This will allow you to deduct a portion of the premium pay your husband earns for his overtime hours.   You can deduct up to $25,000 of qualified overtime pay on your joint return. This deduction is available whether you take the standard deduction or itemize. The deduction begins to phase out if your household's modified adjusted gross income exceeds $300,000. It is important to know that qualified overtime specifically refers to the "half" portion of "time-and-a-half" pay required by the Fair Labor Standards Act.    For example: if your husband earns $40 an hour, his overtime would be paid at $60 an hour.  The extra $20 for each overtime hour would be eligible for the deduction.   The bill also makes changes to the Child Tax Credit, which is a significant benefit for families with children. The credit is increased from $2,000 to $2,200 per qualifying child. The income threshold for the credit is made permanent, so it won't be reduced at the end of 2025. It begins to phase out at $400,000 for married couples filing jointly. A portion of the credit is refundable, meaning you could receive a refund even if you don't owe federal income tax.   For more details see: One Big Beautiful Act of 2025 Provisions One Big Beautiful Bill Tax Changes and How it Impacts You-TurboTax  See How Tax Changes Impact You with the Tax Reform Calculator   Please feel free to reach back out with any additional questions.   Thank you for joining us today and have an amazing rest of your day!   **Say "Thanks" by clicking the thumb icon in a post **Mark the post that answers your question by clicking on "Mark as Best Answer.”  

The One Big Beautiful Bill (OBBB) did not change how much social security income is taxed. Instead, a new senior deduction was created.   Here are the highlights:   Effective for 2025 through 2028, taxpayers who are age 65 and older may claim an additional deduction of $6,000 per eligible individual. The deduction begins to phase out with modified adjusted gross income over $75,000 ($150,000 for a married couple where both spouses qualify).  The deduction is available for both itemizing and non-itemizing taxpayers. Taxpayers must include the social security number of the qualifying individual(s) on the return. Regarding your second question: public employee retirement benefits did not change under the OBBB. On the federal return, public pensions continue to be taxable as ordinary income (except for any portion from after-tax contributions). At the state income tax level, how the benefits are taxed depends on your state's specific laws, which range from no tax at all to full taxation.   You also asked if you should withdraw a higher amount than your RMD, in an effort to reduce future taxes. The answer is dependent on many factors. Since the senior deduction is set to expire in tax year 2028, you might want to consider it, but there is a trade-off: you might benefit from a reduction in future taxes by paying the taxes now on a higher retirement distribution, but there's always a possibility that Congress could extend the senior tax deduction past 2028. Also, if you take a higher retirement distribution now, that would push your income up, which could cause you to be in a higher tax bracket, make more of your social security benefits taxable, and potentially increase your Medicare premiums. These are things to consider before making that decision.   I hope this info helps! Thanks for participating in today's event!  

As per the One Big Beautiful Bill, effective for Tax Years 2025 through 2028, individuals who receive overtime pay, may deduct the pay that exceeds their regular rate of pay - such as the "half" portion of "time-and-a-half" compensation - that is required by Fair Labor Standards Act (FLSA) and that is reported on your tax form, like, W-2. Maximum annual deduction is $12,500 ($25,000 for joint filers). file jointly if married, to claim the deduction. Deduction phases out for taxpayers with Modified AGI over $150,000 ($300,000 for joint filers). Employer will be required to file information returns with the IRS (or SSA) and furnish statements to taxpayers showing the amount of qualified overtime pay that is paid during the year. Thanks for participating @RobynZills 

Whether or not your Social Security benefits are taxable depends on your "combined income," which is your adjusted gross income plus any non-taxable interest and half of your Social Security benefits If you file as an individual, you may pay taxes on up to 50% of your benefits if your combined income is between $25,000 and $34,000, and up to 85% if it exceeds $34,000. For joint filers, up to 50% may be taxed if combined income is between $32,000 and $44,000, and up to 85% if it exceeds $44,000.Legislation referred to as the "One Big Beautiful Bill" aims to reduce the tax burden on Social Security benefits for many retirees by introducing an additional deduction for taxpayers aged 65 and older This law includes a temporary $6,000 deduction for individuals age 65 and older ($12,000 for married couples filing jointly where both spouses are 65 or older) for tax years 2025-2028, with the deduction phasing out for higher incomes. As a result of this deduction, analyses suggest that approximately 88% of seniors receiving Social Security will pay no federal income tax on their benefits. Regarding taking an additional RMD I see no advantage to that as it will raise your income for calculating taxable social security.

It's too late to get a refund for any year earlier than 2022. You can file a tax return for 2021 or earlier, but if the tax return shows a refund you will not get the refund. If it shows a payment due you have to pay the amount due. The IRS will then bill you for penalties and interest for late filing and late payment. There is no penalty for late filing if the tax return shows a refund.  

Example An employee's regular hourly rate is $30. When working overtime, their rate is time-and-a-half, or $45 per hour ($30 x 1.5). The "no tax on overtime" deduction applies to the overtime premium, which is the "half" or the portion exceeding their regular pay, according to www.jems.com. In this case, that's $15 per hour ($45 - $30). If the employee works 10 hours of overtime in a week, the eligible overtime premium for the deduction would be $150 ($15 per hour x 10 hours). This means, that for the purposes of federal income tax, the employee can deduct that $150 from their taxable income when they file their annual tax return.  Important points This is a deduction, not an exemption. Taxes will still be withheld from overtime paychecks, but the deduction can be claimed when filing annual tax returns. The deduction is temporary. It's currently in effect for tax years 2025 through 2028. There are income limits. The deduction phases out for those earning over $150,000 in modified adjusted gross income ($300,000 for joint filers). The deduction is capped. The maximum deduction is $12,500 for single filers and $25,000 for those married filing jointly. Only federal income tax is affected. This deduction does not apply to payroll taxes (Social Security and Medicare), or state and local income taxes. It applies only to FLSA-required overtime. Overtime premiums required by state laws or union contracts may not be eligible for this deduction.  This means the "no tax on overtime" provision doesn't eliminate all taxes on overtime pay. It provides a deduction that can reduce the federal income tax burden for qualifying individuals, making overtime work potentially more financially beneficial.  ** Please say "Thanks" by clicking the thumbs up icon in a post *** Mark the post that answers your question by clicking on the "Mark as Best Answer"

To determine the RMD you need to use the worksheet on 590-B starting on page 47 and the Life expectancy tables starting on page 50.  You use the IRA balance on Dec 31 of the prior year.   https://www.irs.gov/pub/irs-pdf/p590b.pdf  

Let me answer this in the same order: 1) The OBBB eliminates the EV credit sooner than expected on September 30th, 2025 with the tax credit for installing an EV charger at home ending June 30, 2026. It is possible to claim bonus depreciation and Section 179 on the same vehicle. 2) It is possible that you can generate an NOL within your SMLLC and claim a deduction on your tax return potentially offseting wage income. However, the 100 hours of activity is just one of the tests of material participation. You would want to review the other rules. 3) You would use form 8936 and Sch A to calculate your EV credit. The vehicle must meet certain IRS qualifications and income limits could apply. 4) You're correct that a vehicle with GVW under 6,000 would be subject to the luxury auto limit. You're also correct that you will need to reduce your basis by the amount of the credit claimed, either $7,500 for new or $4,000 for used vehicle. The $7500/$4000 is taken as a credit before you calculate the luxury auto limit of $20,400 under IRC 280F.   5) The credit for used vehicles is calculated as up to $4,000 OR 30% of the sale price, whichever is less. Eligibility requirements: Purchase before September 30, 2025. Purchased from a licensed dealer at a sale price of $25,000 or less. The vehicle must be at least 2 model years older than the purchase year, have a GVWR under 14,000 pounds, and meet battery capacity requirements. It must be for use primarily in the U.S., not previously transferred after August 16, 2022, and you cannot be the original owner or claimed as a dependent. You cannot have claimed this credit in the past 3 years.   6) You cannot generate an NOL with Section 179 expense net of all your business income. In this situation, bonus depreciation would make more sense. The OBBB has also restored the 100% bonus depreciation. If you have some income, you could claim Sec 179 first and then bonus depreciation of the amounts the are below your net income. Another consideration is recapture of section 179 deduction if you sell or dispose of the vehicle before the end of it's useful life or if business use percent drops below 50%. 3m ago

Per the Internal Revenue Service: Effective for 2025 through 2028, individuals who receive qualified overtime compensation may deduct the pay that exceeds their regular rate of pay – such as the “half” portion of “time-and-a-half” compensation -- that is required by the Fair Labor Standards Act (FLSA) and that is reported on a Form W-2, Form 1099, or other specified statement furnished to the individual. Maximum annual deduction is $12,500 ($25,000 for joint filers). Deduction phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers). The One Big Beautiful Bill  ** Please say "Thanks" by clicking the thumbs up icon in a post *** Mark the post that answers your question by clicking on the "Mark as Best Answer"