Providing coffee, drink, snacks, and meals in the office goes a long way to improve and/or maintain employee morale. There are times when providing meals for employees who work late and/or overtime is convenient to the employer as it aids workplace efficiency. Outside of the office, business meals are necessary when away from home on business trips, attendance at conventions and meeting with business prospects. While all of these situations are valid expenses of running a business, it was also a business tax deduction. However this will no longer be the case beginning with your 2026 business tax return. IRS has provided greater clarification on deductible business meal expenses. The business can still expense these items for accounting book purposes.
No Tax Really Means … New Limited Tax Deductions for tax years 2025-2028
In 2025, there was a lot of discussion regarding "No Tax on Overtime", "No Tax on Tips", and NO Tax on Social Security". However, H.R.1, which was signed into law, did not remove these income items from taxation. What was granted in H.R.1 were new tax deductions for those income items for tax years 2025-2028.
This summary highlights key provisions related to overtime pay, tips, Social Security income, and auto loan interest deductions.
Once Taxes are Filed… now what?
Tax returns and supporting documents (W-2s, 1099s, receipts, charitable donation records, etc.) can accumulate quickly on paper or in digital files, but it’s important not to discard anything until you’ve reviewed some record-retention guidelines. Be sure to store your 2025 tax returns and all supporting documents with your previous returns in a secure place where you’ll easily find them when needed. This storage can be paper or digital.
Do You Qualify for Disaster Tax Relief?
Environmental disasters continue to occur, but previously only federally declared disasters would potentially result in IRS disaster relief. The Filing Relief for Natural Disasters Act (H.R. 517:PL 119-29) “FRNDA”, which became law July 24, 2025, provides additional ways for federal tax deadlines to be postponed following natural disasters. This law ensures faster, broader, and more predictable relief for individuals and businesses impacted by natural disasters, even when the Federal Emergency Management Agency (FEMA) has not issued a federal disaster declaration.
Key Tax Law Changes for Individuals and Businesses Under H.R. 1 also known as the One Big Beautiful Bill Act (OBBBA)
On July 4, 2025, H.R. 1 from the 119th Congress, also known as the One Big Beautiful Bill Act (OBBBA), was signed into law by President Trump. The OBBBA extends and enhances many of the tax breaks from the 2017 Tax Cuts and Jobs Act (TCJA). It also significantly changed aspects of the Inflation Reduction Act (IRA) of 2022, particularly in the area of clean energy tax credits and environmental programs. Most notably for homeowner, the 30% Energy Efficient Home Improvement and the 30% Residential Clean Energy Credits originally ending 2032 now ends in 2025.





