Standard Deduction 2025: What Every Taxpayer Must Know
What is the Standard Deduction? The Standard Deduction is a fixed dollar amount that reduces your taxable income. You do not need to provide documentation of expenses to claim it, unlike itemized deductions. Most taxpayers claim the standard deduction due to its simplicity and beneficial amount. IRC Code Reference for Standard Deduction The Internal Revenue […]
IRS Form W-2 (2025): What It Is, What’s Reported, and Why It Matters
What Is Form W-2? Form W-2, Wage and Tax Statement, is issued by employers to employees to report wages paid and taxes withheld during the calendar year. It is a foundational tax document used when filing IRS Form 1040. You should receive a W-2 by January 31, 2026 for the 2025 tax year. IRC Code […]
Qualified Business Income Deduction (QBID) for 2025
What Is the Qualified Business Income Deduction? The Qualified Business Income Deduction (QBID) allows eligible business owners to deduct up to 20% of their net business income from sole proprietorships, partnerships, S corporations, or certain trusts and estates. It’s available through 2025 under the Tax Cuts and Jobs Act (TCJA) unless extended by Congress. IRC […]
Adjusted Gross Income (AGI): What It Means for Your 2025 Tax Return
What is Adjusted Gross Income (AGI)? Adjusted Gross Income (AGI) is your total gross income for the year, minus specific deductions (also known as adjustments). It’s the starting point for calculating your federal income tax liability. Why AGI Matters for Taxpayers AGI determines: Your eligibility for tax credits (like the Child Tax Credit, Lifetime Learning […]
Franchise Tax 2025: What It Is, Who Pays It, and How to Stay Compliant
What Is Franchise Tax? Franchise tax is a state-imposed fee for the privilege of doing business in that state—not based on income but on net worth, capital stock, or gross receipts. It’s often due annually, even if your business has zero income or is inactive. IRC Reference and State Authority While franchise tax is not […]