Qualifying forgiveness of a Paycheck Protection Program (PPP) loan is excluded from gross income; it creates tax‑exempt income rather than taxable cancellation‑of‑debt income.
How do I treat PPP loan forgiveness?
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AI Tax Answer Library
Which states tax remote workers differently in 2025?
Nebraska modified its “convenience of the employer” rule for employer withholding on remote employees who primarily work outside Nebraska
What are Qualified Business Income (QBI) deduction rules for 2025?
The QBI deduction allows up to 20% of your net qualified business income from domestic trades or businesses, plus up to 20% of qualified REIT dividends and qualified publicly traded partnership (PTP) income.
How do I report income from gig economy work and freelance jobs?
Report your gross receipts and expenses on Schedule C (Form 1040). Net profit is subject to income tax and self-employment (SE) tax; compute SE tax on Schedule SE if your net earnings from self-employment are $400 or more.
Which costs are deductible for running a small business?
You can deduct expenses that are ordinary (common and accepted in your trade) and necessary (helpful and appropriate) for carrying on your business. This is the baseline test under the Internal Revenue Code.
How do I report business expenses and home office deductions for remote work?
If you are self-employed (sole proprietor filing Schedule C), you generally deduct ordinary and necessary business expenses under section 162 on Schedule C and take the home office deduction on Form 8829
What are the latest rules for reporting cryptocurrency gains/losses?
Selling crypto for fiat, swapping one token for another, spending crypto on goods/services, or otherwise disposing of a digital asset are taxable events that you must report; use Form 8949 to compute gain/loss
How do the One Big Beautiful Bill Act (OBBBA) provisions affect QBI, SALT, estate, and charitable deductions?
The basic QBI framework remains: up to a 20% deduction of qualified business income, plus 20% of qualified REIT dividends and PTP income, subject to wage/property and income-based limitations
How do I determine residency for state tax purposes with remote work?
You are a resident of the state where you are domiciled until you abandon it and establish domicile elsewhere.
What is the tax impact of inflation on deductions and credits?
Inflation changes the value of thresholds, caps, and phaseouts that determine whether you qualify for a deduction or credit, and how much you get.
What are the rules for reporting side gig income under new 1099-K thresholds?
Third-party settlement organizations (payment apps/marketplaces) must issue a 1099-K if your payments for goods or services exceed $5,000 in the calendar year.
Which states are expanding the sales tax base to digital products?
Broadening its sales tax base to include digital goods as part of a 2025 package that also restores the state rate. This explicitly brings items like downloadable media into the taxable base.
How do new tariffs impact state and federal sales tax compliance?
Tariffs are indirect taxes on imports that raise the landed cost of goods; they do not create a federal sales tax and do not by themselves change the mechanics of filing state sales/use tax returns.
What green energy tax credits are new or expanded for 2025?
Here’s what HIVE AI had to say about "What green energy tax credits are new or expanded for 2025?": Technology‑neutral electricity credits start in 2025 (replace §§45/48) Clean Electricity Production Credit (§45Y). New, technology‑neutral production credit for...
Which tax software tools are best for different firm sizes in 2025?
Cloud-based, easy onboarding, e-file coverage for common individual and business entities, integrated e-signature and client organizers; good when you don’t want servers or VPNs
What are the tax records retention guidelines for individuals and businesses?
Keep “permanent books of account or records” sufficient to establish income, deductions, credits, and other return items, and retain them as long as their contents may become material to any internal revenue law administration.
How do I check for unclaimed credits or refunds for previous years?
Use Where’s My Refund to view the status for the current year and the two prior years. You’ll need your SSN/ITIN, filing status, and the original expected refund amount for the year you select
What evidence is required for charitable donation deductions?
A charitable contribution is deductible only if verified under regulations. Keep records that substantiate the amount, date, donee, and nature of the gift in the year paid.
What is the IRS process for refund delays or payment plan setup?
Check your status using Where’s My Refund on IRS.gov or the IRS2Go app. These tools have the most current status and update daily
How do I handle tax notices from state tax agencies?
Read the entire notice to identify the tax type, period, reason, response deadline, and how to reply
Which receipt types must be saved?
Cash donations: keep a canceled check, a receipt/acknowledgment from the charity showing the charity’s name, date, and amount, or other reliable written records with that information
What data security steps are recommended for storing tax documents?
Maintain encrypted backups to external media or reputable cloud storage; keep at least one offline/offsite copy and encrypt before uploading to the cloud
How do I resolve errors related to Social Security numbers?
Make sure the name and SSN on the return match the Social Security card exactly. If your name changed (for example, marriage/divorce), update the Social Security Administration (SSA) first, then file or correct your return.
How can I set up recurring estimated payments?
Enroll at EFTPS.gov, then you can schedule multiple estimated payments in advance and set a recurring cadence. Individuals can schedule payments up to 365 days ahead; businesses up to 120 days.
What options are available for paying taxes online?
IRS Direct Pay: Make one-time payments from a checking or savings account with no fees. You can schedule in advance and get instant confirmation. Works for 1040-series balances, estimates, and more
How do I view my tax account balances and history online through IRS.gov?
Go to IRS.gov/account and select “Sign in to your Online Account” to view your federal tax account information. New users will be prompted to verify identity; have photo ID ready. 1
What are common mistakes that delay refunds or trigger audits?
Entering incorrect credit amounts (for example, Child Tax Credit, Recovery Rebate Credit) instead of using IRS letters/Online Account to reconcile; the IRS adjusts these and it slows processing 1
What documents are “essential” for filing a return in 2025?
If you use an ITIN, confirm it’s valid; expired ITINs can delay processing and refunds. The IRS accepts returns with expired ITINs, but renewal may be needed for smooth processing
Does a filing extension give extra time to pay taxes or just to file?
A filing extension gives you extra time to submit your tax return, generally up to six months (typically until Oct. 15 for individuals).
What is the exact federal filing deadline in 2025?
he due date to file your 2024 federal individual income tax return is Tuesday, April 15, 2025. If you e-file, the transmission time in your time zone controls timeliness; if you mail, a timely postmark counts.
What is the best tax strategy for maxing out retirement plan contributions?
Contribute up to the annual elective deferral limit to your 401(k) or 403(b) and use age-50 catch-up if eligible. For reference, the IRS shows 2024 limits of $23,000 (401(k)/403(b)) and $16,000 (SIMPLE)
How do GRATs and family limited partnerships get taxed?
Most GRATs are structured as grantor trusts, so all trust income, deductions, and gains are taxed to the grantor while the grantor retains powers or interests that trigger grantor trust status. Under Rev. Rul. 85-13 principles
What is the tax impact of life insurance policy payouts?
Amounts paid by reason of the insured’s death are generally excluded from the beneficiary’s gross income. Any interest paid on top of the death benefit (for example, if the insurer holds the proceeds and pays installments with interest) is taxable as interest income and should be reported accordingly.
Are qualified charitable distributions still tax-advantaged in 2025?
Yes. A QCD is a direct transfer from your IRA to a qualifying charity that is excluded from your gross income. The basic QCD rules (age 70½ or older; direct trustee-to-charity transfer; only to section 170(b)(1)(A) organizations
How are beneficiary designations taxed on retirement plans?
Naming a beneficiary has no tax effect by itself. Taxation happens when benefits are paid. In general, a beneficiary includes in income the same portion of a retirement plan distribution the participant would have,
Are there changes for reporting gifts to non-US persons?
There’s no special change to gift tax reporting just because the recipient is a non‑U.S. person. U.S. gift tax is donor‑based: you file Form 709 for taxable gifts in the same way you would for gifts to U.S. persons.
What are the rules for inherited IRAs and 10-year payout?
For most non-spouse “designated beneficiaries,” an inherited IRA (traditional or Roth) must be fully distributed by December 31 of the 10th year after the year of the original owner’s death.
How do I tax Roth conversions and distributions this year?
A conversion from a traditional, SEP, or SIMPLE IRA to a Roth IRA is treated as a distribution from the non‑Roth IRA and a rollover to the Roth IRA. The taxable portion equals the fair market value converted minus any after‑tax basis
How do annual exclusion gifts work for trusts and estate planning?
For 2025, you can give up to $19,000 to each donee without using any lifetime exemption. A married couple can shield up to $38,000 per donee (via gift-splitting) if they consent and file Form 709 as required
What are the new estate tax exemption rules for 2025?
The federal basic exclusion amount (estate and lifetime gift tax exemption) for decedents dying in 2025 is $13,990,000 per individual. 1
Installment sale tax planning strategies
The default for qualifying sales is to report gain proportionally as payments are received under IRC §453. You can elect out and recognize all gain in the year of sale by reporting the sale on the original timely return (including extensions), e.g., on Form 4797/Schedule D, instead of Form 6252.
Like-kind exchange rules for business property
Only exchanges of real property held for productive use in a trade or business or for investment qualify for nonrecognition under section 1031. Personal property and most intangibles no longer qualify; exceptions are narrow (e.g., certain mutual ditch/reservoir/irrigation shares treated as real property under state law).
Alternative minimum tax implications under current law
The individual AMT is an extra 3-step computation: determine alternative minimum taxable income (AMTI) by adjusting regular taxable income for AMT preference items, subtract the AMT exemption, apply AMT rates (26%/28%) to get tentative minimum tax, and compare it to regular tax
Net investment income tax calculations for high-income clients
Individuals owe a 3.8% tax on the lesser of: (a) their net investment income (NII), or (b) the excess of modified adjusted gross income (MAGI) over the statutory threshold ($200,000 single, $250,000 MFJ, $125,000 MFS; not indexed).
Tax treatment of PPP loan forgiveness and related expenses
PPP loan forgiveness is excluded from gross income. Congress codified that no amount is included in income by reason of forgiveness of a PPP First Draw, Second Draw, or §1109 PPP loan. Further, no deduction is denied, no tax attribute is reduced, and no basis increase is denied because of this exclusion.
How to apply new depreciation rules to manufacturing facilities?
Section 179 expensing limits increased starting with tax years beginning after 12/31/2024: up to $2,500,000 immediate expensing, with phase-out starting at $4,000,000 of Section 179 property placed in service, and indexed for inflation thereafter.
State-specific tax law variations and updates
Concise, practitioner-focused roundup of notable state tax changes recently enacted or taking effect, plus how to monitor and plan for continuing variation across states.
Research and development credit optimization
Regular credit: 20% of current-year QREs over the base amount. Optimizes when your fixed‑base percentage is low and current QREs are high relative to gross receipts.
Energy credit calculations and phase-out schedules
The credit equals your base 45Y amount times the “phase‑out percentage” if construction begins in a phase‑out year. IRS final rules confirm the computation and that 45Y’s “applicable year” determination also governs 48E phase‑out. 1
Agricultural tax provisions and depreciation
Depreciation is allowed for property used in farming or held for the production of income under IRC §167; most post-1986 tangible farm property uses MACRS under §168 with prescribed methods, recovery periods, and conventions.
Real estate professional tax status qualification
To be treated as a real estate professional for passive activity loss rules, you must satisfy both annual tests below with respect to real property trades or businesses in which you materially participate:
Nonprofit organization tax compliance and Form 990 requirements
Most organizations exempt under IRC §501(a) must file an annual information return under §6033 on a Form 990-series return, reporting income, receipts, disbursements, and other required information.
Employment tax compliance for gig economy workers
Classify each worker under the common-law control test. If you have the right to direct what will be done and how, the worker is an employee (this applies even to remote workers).
Qualified business income deduction optimization
Maximize QBI, but remember the deduction is the lesser of 20% of QBI (plus 20% of qualified REIT/PTP income) or 20% of taxable income reduced by net capital gain. Managing taxable income and net capital gain often binds the deduction before business limits do. 1
BEAT, GILTI, and FDII calculations under new rules
Below is a practical framework to compute each regime, highlight interactions, and reflect changes made by the One Big Beautiful Bill Act (OBBBA). Where OBBBA adjusted parameters effective for tax years beginning after 12/31/2025, I note those new amounts.
PTE tax election strategies and deadlines
Many states let partnerships and S corporations elect to pay state income tax at the entity level (PTE or PTET). The entity-level tax is generally deductible by the business for federal income tax purposes, bypassing the individual SALT $10,000 cap on Schedule A
How to calculate late filing penalties for partnerships?
A partnership owes a penalty if it files Form 1065 late (after the due date, including extensions) or files an incomplete return lacking required information, unless it establishes reasonable cause. 1
When are 2025 business tax return deadlines?
Calendar-year filers (tax year ending Dec 31, 2024): due March 17, 2025 (March 15 falls on a Saturday) Fiscal-year filers: due the 15th day of the 3rd month after year-end
Tax implications of business entity conversions
Changing a business’s federal tax classification or legal form can trigger deemed transactions for income tax, employment tax, and information reporting.
Trust and estate tax planning post-2025 changes
The federal basic exclusion amount for estate and gift tax is increased to $15,000,000 per person (indexed for inflation) beginning for decedents dying and gifts made after December 31, 2025.
International tax compliance for expats and foreign entities
U.S. citizens and resident aliens are taxed on worldwide income, even if they live and work abroad. Report all foreign-source earned and unearned income on a U.S. return each year. Nonresident aliens generally owe U.S.
Multi-state tax allocation for remote workers
States generally tax wage income where the work is performed; the resident state typically taxes all income but offers a credit for taxes paid to other states to mitigate double taxation. Convenience-of-the-employer rules and reciprocity agreements can change the result.
Pass-through entity tax election strategies by state
TET lets partnerships and S corporations pay state income tax at the entity level so owners can receive a federal deduction not limited by the individual SALT cap. Nearly all high-tax states, and many others, now offer PTET.
How to handle cryptocurrency transactions for tax purposes
The IRS treats cryptocurrency and other blockchain-based tokens as “digital assets,” and digital assets are treated as property. General property tax rules apply to purchases, sales, exchanges, and dispositions.
Innocent spouse relief qualification requirements
When you file a joint return, both spouses are jointly and severally liable for the entire tax, interest, and penalties. Innocent spouse relief can remove your responsibility for tax attributable to your spouse’s erroneous items
Collection due process hearing procedures
A CDP hearing is an independent review by the IRS Office of Appeals of a proposed levy or a filed Notice of Federal Tax Lien (NFTL). It is intended to ensure the action is warranted and appropriate, and that collection alternatives were considered first
Appeal rights and procedures for disputed assessments
You can request review by the IRS Independent Office of Appeals for most disputed matters (exam adjustments, penalties, liens/levies, interest abatement denials, OIC rejections).
Offer in compromise qualification criteria and procedures
An OIC is a binding agreement with the IRS to settle your tax liabilities for less than the full amount owed. The IRS generally will not accept an OIC if you can fully pay through an installment agreement or other means.
Audit defense strategies for common examination issues
Returns are classified to determine the scope and where the case is worked: correspondence, office (TCO), or field (RA). RAs handle more complex cases and TCOs more limited issues; proper assignment is based on issue complexity and time expectations.
How to respond to specific IRS notices and letters
Read the notice carefully to identify the tax year, the issue, the amount (if any), and the response deadline. Many IRS notices allow about 30 days to respond; allow the IRS at least 30 days to reply back after you respond.
Client confidentiality and disclosure requirements
Here’s what HIVE AI had to say about "Client confidentiality and disclosure requirements": Client Confidentiality and Disclosure Requirements Overview of Confidentiality Obligations Client confidentiality represents one of the fundamental pillars of professional tax...
E-filing mandate compliance for tax preparers
The electronic filing mandate for tax preparers represents a comprehensive regulatory framework designed to modernize tax administration and improve processing efficiency.
Due diligence requirements for specific tax credits
By law, you must meet four specific due diligence requirements if you are paid to prepare a tax return or claim for refund claiming any of these tax benefits.
What are the preparer penalties for 2025?
Tax return preparer penalties are comprehensive civil sanctions designed to ensure professional competence and compliance in tax preparation services.
How to handle IRS representation matters?
Practice before the Internal Revenue Service encompasses all matters connected with presentation to the Internal Revenue Service or any of its personnel relating to a taxpayer’s rights, privileges, or liabilities
What are the current Circular 230 requirements?
Section 330 of title 31 of the United States Code authorizes the Secretary of the Treasury to regulate the practice of representatives of persons before the Treasury Department (Treasury).
How do the new Trump Accounts for children work, and what are their tax advantages under the One Big Beautiful Bill?
The One Big Beautiful Bill Act (OBBBA) introduces a revolutionary new savings vehicle called “Trump Accounts” designed specifically to help children build long-term wealth from birth.
Are there any retroactive provisions or opportunities for amended returns under the One Big Beautiful Bill?
Here’s what HIVE AI had to say about "Are there any retroactive provisions or opportunities for amended returns under the One Big Beautiful Bill?": Retroactive Provisions and Amended Return Opportunities Under the One Big Beautiful Bill The One Big Beautiful Bill Act...
What are the effective dates for key provisions, and are there transition rules under the One Big Beautiful Bill?
The One Big Beautiful Bill Act (OBBBA) contains a complex array of effective dates and transition rules that reflect the comprehensive nature of this landmark legislation.
What changes are made to the BEAT (Base Erosion and Anti-Abuse Tax) and other international minimum taxes under the One Big Beautiful Bill?
The One Big Beautiful Bill Act (OBBBA) introduces significant modifications to the Base Erosion and Anti-Abuse Tax (BEAT) and other international minimum tax provisions, fundamentally altering the landscape of international tax compliance for multinational corporations.
How does the bill impact foreign investors and cross-border tax rules, including new penalty taxes under the One Big Beautiful Bill?
The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, introduces significant changes to international tax policy that substantially affect foreign investors and cross-border tax rules.
Are there new reporting requirements or compliance deadlines for multinational businesses under the One Big Beautiful Bill?
The One Big Beautiful Bill Act (OBBBA) introduces several significant changes to reporting requirements and compliance deadlines that directly impact multinational businesses operating in the United States.
How are pass-through entity (PTE) deductions and limitations affected, especially for specified service trades or businesses (SSTBs) under the One Big Beautiful Bill?
The One Big Beautiful Bill Act (OBBBA) introduces significant modifications to pass-through entity deductions and limitations, particularly affecting specified service trades or businesses (SSTBs).
What are the new rules for Qualified Small Business Stock (QSBS) gain exclusion under the One Big Beautiful Bill?
The One Big Beautiful Bill Act (OBBBA) introduces transformative changes to the Qualified Small Business Stock (QSBS) gain exclusion under Section 1202, representing one of the most significant enhancements to this provision since its original enactment.
Are there changes to the Excess Business Loss limitation for non-corporate taxpayers under the One Big Beautiful Bill?
The One Big Beautiful Bill Act (OBBBA) introduces significant modifications to the excess business loss limitation rules under Section 461(l), fundamentally altering the landscape for non-corporate taxpayers who experience business losses.
How does the bill change the treatment of domestic research and development (R&D) expenses under the One Big Beautiful Bill?
The One Big Beautiful Bill Act (OBBBA) introduces transformative changes to the treatment of domestic research and development expenses, representing one of the most significant business tax provisions in the legislation.
What are the new Section 179 expensing limits under the One Big Beautiful Bill?
The One Big Beautiful Bill Act (OBBBA) introduces substantial increases to the Section 179 expensing limits, representing one of the most significant enhancements to this business tax provision in recent years.
What are the new rules for business interest expense deduction under Section 163(j) under the One Big Beautiful Bill?
The One Big Beautiful Bill Act (OBBBA) introduces several significant modifications to the business interest expense deduction rules under Section 163(j), fundamentally altering how businesses calculate their allowable interest deductions and coordinate with other tax provisions.
Is 100% bonus depreciation permanently reinstated, and what property qualifies under the One Big Beautiful Bill?
The One Big Beautiful Bill Act (OBBBA) has indeed permanently reinstated 100% bonus depreciation, representing one of the most significant business tax provisions in the legislation.
Has the Qualified Business Income (QBI) deduction under Section 199A changed, and who is eligible under the One Big Beautiful Bill?
The Qualified Business Income (QBI) deduction under Section 199A has undergone significant modifications through the One Big Beautiful Bill Act (OBBBA), which was signed into law on July 4, 2025.
What are the new rules for electric vehicle (EV) and EV charging station credits under the One Big Beautiful Bill?
The One Big Beautiful Bill Act (OBBBA) represents a dramatic shift in federal electric vehicle policy, implementing comprehensive terminations and restrictions on EV-related tax credits that fundamentally alter the landscape for electric vehicle adoption and charging infrastructure development.
Are there new incentives for fossil fuel production or manufacturing under the One Big Beautiful Bill?
The One Big Beautiful Bill Act (OBBBA) represents a significant policy shift that includes several new incentives and enhancements for fossil fuel production and manufacturing activities.
Which clean energy tax credits are being phased out or modified, and when do they expire under the One Big Beautiful Bill?
The One Big Beautiful Bill Act (OBBBA), passed in July 2025, represents a significant shift in federal energy policy, implementing substantial changes to clean energy tax incentives.
How does the new law affect itemized deductions, especially for medical expenses and mortgage interest under the One Big Beautiful Bill?
The One Big Beautiful Bill introduces significant changes to the itemized deduction framework that will fundamentally alter how taxpayers calculate their tax liability.
What are the new rules for deducting auto loan interest, and who qualifies under the One Big Beautiful Bill?
The One Big Beautiful Bill introduces a significant new tax benefit that allows taxpayers to deduct interest paid on qualifying auto loans for personal use vehicles
What is the new amount and eligibility criteria for the Child Tax Credit under the One Big Beautiful Bill?
The One Big Beautiful Bill introduces significant enhancements to the Child Tax Credit that build upon the existing framework while providing increased benefits and permanent provisions.
Has the standard deduction changed, and are personal exemptions still eliminated under the One Big Beautiful Bill?
The One Big Beautiful Bill introduces significant and permanent changes to the standard deduction structure that build upon the temporary increases established by the Tax Cuts and Jobs Act
What are the new individual income tax brackets under the One Big Beautiful Bill?
The One Big Beautiful Bill represents a comprehensive tax reform proposal that fundamentally restructures the individual income tax system. Based on the available documentation, this legislation introduces significant changes to tax brackets, rates, and various deductions that would affect millions of American taxpayers.
Are there changes to the pass-through entity tax workaround for SALT under the One Big Beautiful Bill?
The One Big Beautiful Bill does not appear to contain specific provisions that directly modify the existing pass-through entity tax workaround for State and Local Tax (SALT) deductions.
How long will the increased SALT cap remain in effect before reverting under the One Big Beautiful Bill?
The increased State and Local Tax (SALT) deduction cap under the One Big Beautiful Bill represents a temporary enhancement to the current tax limitation structure.