Tax Shifts & Smart Tips: Federal Updates You Need to Know
This article highlights key financial changes, from expiring clean energy credits to proposed tip deductions and the end of paper checks, that could affect your bottom line.
Clean Energy Credits Set to Expire
The expiration dates of several clean energy tax credits and deductions have been accelerated under the One Big Beautiful Bill Act. The IRS has published a fact sheet (FS 2025-05) on the expiring credits and deductions in the form of frequently asked questions (FAQs). Specifically, the FAQs list the termination dates of seven clean energy credits and one deduction. In addition, three of the FAQs provide clarification on various clean vehicle credits (Sections 25E, 30D and 45W), which expire the soonest: 9/30/25. Finally, the FAQs address the Energy Efficient Home Improvement Credit (Sec. 25C) and the Residential Clean Energy Credit (Sec. 25D). View the fact sheet: https://bit.ly/4muqKXD
Federal Paper Checks Phase Out Begins This Fall
As a reminder, beginning Sept. 30, 2025, the federal government will no longer issue paper checks, including those for tax refunds, Social Security benefits and more. Also, certain federal agencies, such as the Dept. of Labor (DOL) will stop ACCEPTING payments by paper check. This is part of a program to modernize payments, “improve efficiency in processing payments and reduce administrative burdens,” the DOL said. Historically, the government stated that checks issued by the Dept. of the Treasury are more likely to be lost, stolen or subject to other forms of fraud. Taxpayers who don’t already have a bank or credit union account should act now to open one. Contact us with questions.
Read more: Act Now: Open a Bank Account Before the IRS Stops Sending Paper Checks
Draft List Reveals 68 Jobs Eligible for Tip Deduction
The U.S. Treasury Dept. has released a draft list of occupations it proposes to be eligible for a federal tax break on tips. The list contains 68 jobs, broken into eight categories: 1) beverage/food service, 2) entertainment/events, 3) hospitality / guest services, 4) home services, 5) personal services, 6) personal appearance / wellness, 7) recreation/instruction and 8) transportation/delivery. Job titles include wait staff, hotel maids, musicians, babysitters, golf caddies, delivery people, rideshare drivers, plumbers, home movers and digital content creators. For 2025 through 2028, eligible taxpayers can deduct tips up to an annual maximum of $25,000, even if they don’t itemize.
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