The One, Big, Beautiful Bill Act significantly affects federal taxes, credits and deductions. It was signed into law on July 4, 2025, as Public Law 119-21, and takes effect in 2025. 

The Working Families Tax Cuts allows parents, guardians and other authorized individuals to establish a new type of individual retirement account for their children, called Trump Accounts. The account is for a child who has not turned age 18 before the end of the calendar year in which the election is made and has a valid Social Security number.

The account features a pilot program contribution of $1,000 for children born between 

Jan. 1, 2025, and Dec. 31, 2028, and who are U.S. citizens with a valid Social Security number.

Overview of Trump Accounts

• Parents, guardians, or others can establish a Trump Account for an eligible child.
• Trump Accounts cannot be funded before July 4, 2026.
• The federal government will make a one-time $1,000 contribution for each eligible child’s account.
• Authorized contributions from individuals and employers are allowed up to $5,000 per year.
• Employers can contribute up to $2,500 per year toward an employee’s or dependent’s Trump Account without it counting as taxable income for the employee.
• Funds must be invested in certain mutual funds or exchange-traded funds that track a U.S. stock index such as the S&P 500.

Withdrawal and use

• Generally, money cannot be withdrawn before the year the child turns 18.
• After that point, the account is treated like a traditional IRA with similar tax rules.

The Department of the Treasury and the Internal Revenue Service today provided guidance on “no tax on tips” provision. The One, Big, Beautiful Bill proposed regulations identify occupations customarily and regularly receive tips and define “qualified tips” eligible taxpayers may claim as a deduction. The proposed regulations list nearly 70 separate occupations of tipped workers, from bartenders to water taxi operators.

Treasury and IRS request comments from the public within 30 days to be made through Regulations.gov. Complete instructions on submitting comments can be found in the proposed regulations. Comments on the proposed regulations are due by Oct. 23, 2025.

Treasury Tipped Occupation Code, provides a three-digit code and descriptions for the occupations listed within the proposed regulations. The proposed regulations group the occupations into eight categories:

• 100s – Beverage and Food Service
• 200s – Entertainment and Events
• 300s – Hospitality and Guest Services
• 400s – Home Services
• 500s – Personal Services
• 600s – Personal Appearance and Wellness
• 700s – Recreation and Instruction
• 800s – Transportation and Delivery

In order to claim the deduction, a worker must both be in an occupation on the list and receive qualified tips. The proposed regulations provide a definition of qualified and not qualified tips which includes the following factors:

• Qualified tips must be paid in cash or an equivalent medium, such as check, credit card, debit card, gift card, tangible or intangible tokens that are readily exchangeable for a fixed amount in cash, or another form of electronic settlement or mobile payment application (excluding most digital assets) denominated in cash.
• Qualified tips must be received from customers or, in the case of an employee, through a mandatory or voluntary tip-sharing arrangement, such as a tip pool.
• Qualified tips must be paid voluntarily by the customer and not be subject to negotiation. Qualified tips do not include some service charges. For instance, in the case of a restaurant that imposes an automatic 18% service charge for large parties and distributes that amount to waiters, bussers and kitchen staff; if the charge is added with no option for the customer to disregard or modify it, the amounts distributed to the workers from it are not qualified tips.
• Any amount received for illegal activity, prostitution services, or pornographic activity is not a qualified tip.

Here's a link on the Qualifying counties for The California Disasters affected by the current weather disasters . Extension to file taxes extended to this counties until Oct 16th 2023

These FAQ are for informational purposes and only relate to the Zelle Network®. Zelle® does not provide tax advice. If you have any tax questions about your individual situation, please consult a tax or legal professional.

The Internal Revenue Service provided details today clarifying the federal tax status involving special payments made by 21 states in 2022.

The IRS has determined that in the interest of sound tax administration and other factors, taxpayers in many states will not need to report these payments on their 2022 tax returns.

During a review, the IRS determined it will not challenge the taxability of payments related to general welfare and disaster relief. This means that people in the following states do not need to report these state payments on their 2022 tax return: California, Colorado, Connecticut, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Maine, New Jersey, New Mexico, New York, Oregon, Pennsylvania and Rhode Island. Alaska is in this group as well, but please see below for more nuanced information.

Form 1099-K, Payment Card and Third-Party Network Transactions, is an IRS information return used to report certain payment transactions to improve voluntary tax compliance. You should receive Form 1099-K by January 31 if, in the prior calendar year, you received payments:

• From all payment card transactions (e.g., debit, credit, or stored-value cards), and
• In settlement of third-party payment network transactions above the minimum reporting thresholds as follows:
  • For returns for calendar years prior to 2022:
    • Gross payments that exceed $20,000, AND
    • More than 200 such transactions
  • For returns for calendar years after 2021:
    • Gross payments for goods or services that exceed $600, AND
    • Any number of transactions

Form 1099-K has been around for a while, but it’s received more attention recently because of a recent rule change. With the change, it was expected that many more people would get this form in 2023.

However, the IRS announced on Dec. 23, 2022, the new rule will be delayed. So, what does this twist mean, and what applies for your 2022 taxes (filed in 2023)?

Here’s what we know:

• In general, the rules for sending Form 1099-K for tax year 2022 will apply as they did for tax year 2021 according to the IRS announcement.
• Some people will still receive Form 1099-K for tax year 2022 early in 2023 based on the previous rules. With the delay of the rule, not as many people will be affected as expected this year.

 IRS Tax Tip 2022-147, September 26, 2022

Many people know IRS.gov has the latest filing info and tax forms, but they may not be aware that it also has a wide range of other tax-related topics. Here are five things people can find on IRS.gov besides filing info.

1. Find the Taxpayer Bill of Rights – Each taxpayer has a set of fundamental rights when dealing with the IRS. It's important for taxpayers to know their rights and the IRS's obligation to protect them.
    
2. Learn how to apply for 501(c)(3) status – The requirements and process to apply for 501(c)(3) status can be a lot. The IRS' webinars and resources help organizations apply for and maintain federal tax-exempt status.
    
3. Discover IRS tax volunteer opportunities – People can learn to prepare taxes and make a difference in their community at the same time by volunteering to prepare taxes free of charge with the Volunteer Income Tax Assistance or Tax Counseling for the Elderly programs.
    
4. Keep up with the latest tax scams – Knowing how identity thieves and fraudsters work is one way taxpayers can keep themselves safe.
    
5. Use the Interactive Tax Assistant – People can get personalized answers to tax questions with the Interactive Tax Assistant. This tool provides answers to many common tax law questions based on the taxpayer's individual circumstances.