The One Big Beautiful Bill Act (OBBBA) has caused some confusion as boomers and other taxpayers file this year. To help make it easier, GOBankingRates spoke with some tax pros who shared information about a few expiring tax breaks for boomers to consider. Energy-Related Credits Brian Zink, CEO and founder of No Upfront Tax Relief, is among the tax experts who said they’re advising Boomer clients to keep an eye on a few specific tax credits, and energy-related credits are a big one. Read Next: Here’s the ...

Treasury Secretary Scott Bessent said that 44% of tax returns, or 37.5 million Americans, have claimed benefits from one of the new tax policies in the One Big Beautiful Bill: no tax on tips, no tax on overtime pay, no tax on Social Security, or deductions for car loan interest. Meanwhile, more than 6 million Americans have signed up for Trump accounts, the new tax-advantaged investment account for children, designed to set them up to invest early, Bessent said in a meeting of President Trump's Cabinet la ...

Core Insights - Individuals turning 73 must start planning for required minimum distributions (RMDs) from traditional IRAs or 401(k)s, which may impact their retirement savings strategy [1][2] Group 1: RMD Overview - RMDs can be manageable for some retirees, especially if their planned withdrawals are close to the RMD amount, resulting in minimal additional withdrawals [1] - For those who do not need the funds, RMDs can be frustrating, but the money can be reinvested rather than spent [2] Group 2: Tax Implications - RMDs trigger tax consequences, including potential federal and state taxes, and may affect the retiree's tax bracket and Social Security benefits [3] - Taking an RMD cannot be rolled into another tax-advantaged retirement account, but it can be placed into a regular investment account [4] Group 3: Investment Strategies - Retirees can still benefit from tax breaks when reinvesting RMDs, with municipal bonds being a recommended low-risk investment option due to their tax-exempt status [6]

Core Insights - Taxpayers are facing potential delays in receiving refunds due to various state-level issues and the implementation of new tax breaks from President Trump's tax and spending bill [1][4][11] Tax Filing and Refund Processing - As of mid-February, the IRS had received 41,892,000 tax returns, processed 41,362,000, and issued 28,738,000 refunds [2] - Most electronic tax refunds are typically issued within 21 days, while paper returns may take up to 42 days or longer if additional review is needed [3][8] State-Specific Delays - **Idaho**: Refunds may be delayed by 12 to 24 weeks due to budget cuts and a reduced workforce, costing taxpayers up to $7 million in increased interest payments [4][5] - **New York**: Delays are reported due to issues with Intuit TurboTax software, affecting taxpayers who filed before software updates [6] - **Oregon**: Paper returns will not be processed until the end of March due to delays in receiving necessary tax forms from the IRS [9][10] - **South Carolina**: Processing times are longer than usual as the state does not conform to the new federal tax changes, leading to expected delays [11] - **Washington, D.C.**: Tax filing is delayed due to a legal dispute regarding the implementation of new federal tax rules, affecting both electronic and paper returns [12][13] Refund Tracking - Taxpayers can check the status of their refunds through the IRS online account or the IRS2Go mobile app, with tracking available within 24 hours for e-filed returns [14] - State refund tracking can be accessed through respective state Department of Revenue websites [15]

Core Insights - Taxpayers are facing potential delays in receiving refunds due to various state-level issues and the implementation of new tax breaks from President Trump's tax and spending bill [1][4][11] Group 1: Tax Filing and Refund Processing - As of mid-February, the IRS has received 41,892,000 tax returns, processed 41,362,000, and issued 28,738,000 refunds [2] - Most electronic tax refunds are typically issued within 21 days, while paper returns may take up to 42 days or longer if additional review is needed [3][8] Group 2: State-Specific Delays - Idaho is experiencing delays due to budget cuts that reduced temporary workers, potentially slowing processing by 12 to 24 weeks and delaying refunds by up to six weeks, costing taxpayers up to $7 million in increased interest payments [4][5] - New York taxpayers are facing delays due to issues with Intuit TurboTax software, which may not have reflected the latest tax breaks in time for some filings [6] - Oregon's Department of Revenue will not begin processing paper returns until the end of March due to delays in receiving necessary tax forms from the IRS [9][10] - South Carolina is experiencing longer processing times as it does not currently conform to the federal One Big Beautiful Bill Act, leading to expected delays for residents [11] - Washington, D.C. is facing delays due to a legal dispute regarding the implementation of new federal tax rules, affecting both electronic and paper tax forms [12][13]

Core Points - The tax filing season has begun, introducing Schedule 1-A (Form 1040) for new deductions from the One Big Beautiful Bill Act (OBBBA) [1][3] - Schedule 1-A is designed to help taxpayers identify new tax breaks effective from 2025, applicable to both standard and itemized deductions [2][3] Summary by Category New Deductions - The OBBBA, enacted on July 4, 2025, includes four new deductions available for tax year 2025 [3] - The deductions are: 1. No tax on tips for certain occupations, with a maximum deduction of $25,000, phasing out for MAGI over $150,000 (single) or $300,000 (joint) [4] 2. No tax on overtime compensation, allowing a maximum deduction of $12,500 (single) or $25,000 (joint), phasing out for MAGI over $150,000 (single) or $300,000 (joint) [5] 3. No tax on car loan interest for new personal use vehicles, with a maximum deduction of $10,000, phasing out for MAGI over $100,000 (single) or $200,000 (joint) [6][10] 4. An additional deduction of $6,000 for seniors aged 65 or older, or $12,000 for married filers [7] Eligibility and Filing - Taxpayers must use Schedule 1-A if they plan to claim any of the four new deductions [11] - Schedule 1-A is in addition to other forms like Schedule A and Schedule 1, and it does not replace them [12] - If taxpayers do not qualify for any deductions on Schedule 1-A, they are not required to fill it out [13] Filling Out Schedule 1-A - Schedule 1-A consists of six sections, requiring basic information and calculations based on the taxpayer's situation [14] - Specific sections require additional information, such as tips received for the "no tax on tips" deduction and W-2 forms for the "no tax on overtime" deduction [15][16] - The final section aggregates the deductions to report on Form 1040 [18] FAQs - Taxpayers taking the standard deduction can still file Schedule 1-A if they qualify for the new tax breaks [19] - The IRS provides resources to determine job qualifications for the tip deduction and to verify if a vehicle qualifies for the car loan interest deduction [20][21]

Core Viewpoint - Senate Democrats have introduced legislation aimed at removing key tax advantages for private equity firms and large corporate landlords, which could significantly alter the economics of institutional housing portfolios [1][2]. Tax Implications - The American Homeownership Act proposes to eliminate depreciation and mortgage interest deductions for private equity firms, hedge funds, and large investment managers involved in housing [2]. - The bill would also prevent these firms from accessing federally backed mortgages and from purchasing foreclosed homes from Fannie Mae, Freddie Mac, and federal agencies, targeting the institutional single-family rental model [2]. Antitrust Measures - The legislation directly addresses Wall Street firms that own approximately 450,000 single-family homes and over 2.2 million apartments across the U.S., with corporate landlords acquiring nearly one in six homes sold in 2025 [3]. - New antitrust constraints would be imposed on housing consolidation, including closing reporting loopholes for large property acquisitions and making corporate ownership of over 30% of a local housing market presumptively illegal [4]. Scope of Affected Firms - Any corporate entity purchasing more than 50 single-family homes for rental would lose access to the targeted tax breaks, complicating scaling strategies for large operators [5]. Housing Crisis Context - Democrats argue that private equity and Wall Street landlords are worsening the housing crisis by acquiring large numbers of homes, leading to significant rent increases and unfair treatment of renters [6]. - The legislation includes provisions to avoid hindering new housing supply, allowing firms that build new multifamily housing to retain tax benefits [6]. Financial Impact - The federal government could save "billions of dollars" by eliminating housing-related tax breaks for Wall Street firms, with these savings redirected to housing construction and homeownership programs [7]. - The proposal indicates a more aggressive federal approach toward private capital in housing, combining tax policy, mortgage access, and antitrust enforcement [7]. Potential Outcomes - If enacted, the bill would represent a significant federal intervention in the private equity-backed housing sector, potentially affecting underwriting models, portfolio concentration strategies, and long-term return assumptions in the residential real estate asset class [8].

Core Insights - The IRS has penalized taxpayers over $162 million for misusing tax credits, highlighting the importance of being cautious with online tax advice [1] Group 1: Tax Breaks to Watch Out For - The Fuel Tax Credit is legitimate but only applicable to businesses using fuel for non-taxable purposes, with penalties for misuse potentially reaching $5,000 [2][3] - The so-called "self-employment tax credit" is a misconception; the IRS clarified that no such credit exists, and related benefits were only available for specific COVID-19-related leaves [4][5] - Taxpayers hiring household employees must report their income and employment taxes, with a threshold of $2,800 in 2025 and $3,000 in 2026; fraudulent claims can lead to significant penalties [6][7] - Legitimate business expense write-offs are allowed for "ordinary and necessary" expenses, including mileage, home office use, and advertising [8]

Group 1 - Retirement plans like traditional IRAs and 401(k)s are popular due to their tax benefits, allowing contributions on a pre-tax basis and deferring taxes on investment gains until withdrawals are made [1][2] - Required Minimum Distributions (RMDs) become mandatory at age 73 or 75, depending on the year of birth, and failing to take them can result in significant penalties [3][4] - Vanguard reports that in 2024, nearly 7% of IRA holders missed their RMDs, with an average RMD amount of $11,600, leading to potential penalties of $2,900 for missed withdrawals [6] Group 2 - RMDs are generally due by December 31 each year, and the first RMD can be deferred to April 1 of the year after turning 73, making it essential to plan ahead [7] - Financial institutions typically offer the option to set up automatic RMDs, which can help avoid penalties associated with missed withdrawals [8]

Group 1 - The article discusses the benefits of saving for retirement in an IRA, highlighting tax advantages such as pre-tax contributions and tax-deferred investment gains [1][2] - It mentions drawbacks of traditional IRAs, including required minimum distributions and penalties for early withdrawals before age 59 and a half [2][4] - An exception exists for first-time homebuyers, allowing a penalty-free withdrawal of up to $10,000 from an IRA at any age, but this option is cautioned against [3][4] Group 2 - The article warns that using IRA funds for a home down payment can lead to financial risks, particularly if the individual lacks adequate emergency savings [5][8] - A hypothetical scenario illustrates that withdrawing $10,000 from a $50,000 IRA could result in a loss of over $46,000 in potential gains if the IRA earns an 8% annual return over 25 years [6][7] - It concludes that individuals should consider saving longer for a down payment instead of tapping into their IRA, as early withdrawals could jeopardize retirement savings [8]