Tax Tips or Tax Traps? The Truth Behind Social Media Tax Advice

We’re excited to share some wonderful news with our clients, partners, and community—our firm has once again been recognized in the Best of NWA 2025 awards ! This year, we are honored to receive: Gold for Best Accounting Firm Gold for Bookkeeping Silver for Business Consulting Awards like these are especially meaningful to us because they reflect the trust and confidence our clients place in our team every day. Your support, referrals, and continued partnership are what make achievements like this possible. As we reflect on this recognition, we’re reminded of why we do what we do. At Byrd & Massey, our focus has always been on providing dependable accounting services, thoughtful tax solutions, and strategic business guidance tailored to the needs of small businesses. This acknowledgment encourages us to continue improving, growing, and finding new ways to better serve you. We don’t take your trust lightly. Every return prepared, every set of books balanced, and every consultation we provide is done with a commitment to professionalism, integrity, and attention to detail. Your financial success will always remain at the heart of our work. We are truly grateful for the relationships we’ve built over the years and proud to be part of such a supportive community. Thank you for allowing us to be a part of your journey—we look forward to continuing to grow alongside you for many years to come. — The Team at Byrd and Massey

A new tax law — often referred to as the Big Beautiful Bill — has officially passed, bringing several important updates for individuals, families, homeowners, and small business owners. To make everything easy to understand, we’re launching a 10-part series highlighting the most important changes and how they may affect your taxes in 2025 and beyond. Here’s a quick overview of what the series will cover: 1. Standard Deduction Is Staying Higher The increased standard deduction will not drop in 2026. 2. Lower Tax Brackets Are Staying in Place Current tax brackets and lower rates are now permanent. 3. Child Tax Credit Increase Families may see a higher credit per child. 4. New Overtime Pay Deduction (2025–2028) A new deduction for qualified overtime income, even with the standard deduction. 5. New Tip-Income Deduction Tip earners can deduct taxable tip income (2025–2028). 6. Car-Loan Interest Deduction (U.S.-Assembled Cars Only) Interest on qualifying auto loans becomes deductible for 2025–2028. 7. SALT Deduction Cap Increase The cap rises dramatically from $10,000 to $40,000, with phaseouts (2025–2029). 8. New Deduction for Seniors 65+ Older taxpayers receive an additional deduction through 2028. 9. Continued Small Business & Self-Employed Benefits QBI stays, bonus depreciation continues, and write-off opportunities remain.  10. Smart 2025 (and beyond) Tax-Planning Tips Practical steps to make the most of the new changes. We’ll be publishing each of these posts individually on Instagram and Facebook so you can maximize every deduction and credit available. Stay tuned — there’s a lot of good news to share! With so many tax changes on the horizon, knowledge truly is power. Stay tuned as we unpack each update in our upcoming series — small insights now can lead to smarter decisions all year long.

We have some exciting news to share with you! We're moving! Our New Location will be 2618 SE J St. #4, Bentonville, AR 72712. We are expecting to move in Mid-July, but please call first if you have any questions! Our phone number and email address will remain the same.

There are two types of educational credits to help students in their continuous pursuit of knowledge: The American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC). Understanding both is important if you attend college or have kids who do because it can greatly help with your tax bill. American Opportunity Tax Credit (AOTC) This undergraduate tax credit is a partially refundable credit that is good for the first four years in college and assists with students’ expenses such as qualified tuition expenses, school fees, and course materials. You can claim up to $2500 PER student each year; however, your modified adjusted gross income is a factor when claiming this credit. See the numbers below: Based on Modified Adjusted Gross Income (To claim FULL credit) Individual - $80,000 or less Married Filing Jointly - $160,000 Based on Modified Adjusted Gross Income (To claim REDUCED credit) Individual - Less than $90,000 Married Filing Jointly - Less than $180,000 To claim the AOTC credit, you will need the following: A TIN or Social Security Number A 1098-T (or tuition statement) from an eligible educational institution* Be pursuing a degree or other recognized education credential Be enrolled at least half time for at least one academic period beginning in the tax year Not have claimed the AOTC or the former Hope credit for more than four tax years Not have a felony drug conviction at the end of the tax year *Note: If you were not issued a 1098-T, you may still be able to claim the credit by showing proof of payment to the eligible educational institution attended. Lifetime Learning Credit (LLC) This tax credit is for undergraduate, graduate, and professional studies which includes any courses you take to improve job skills. The LLC is exactly that, for a lifetime. The credit never runs out if you are enrolled and taking courses from an eligible educational institution. You, your spouse, or dependent can receive a $2,000 tax credit every tax year. Based on Modified Adjusted Gross Income (To claim $2000 tax credit) Individual - Less than $90,000 Married Filing Jointly - Less than $180,000 To claim the LLC, you need: A 1098-T (or tuition statement) from an eligible educational institution Cannot also claim the AOTC If you do not receive a 1098-T, provide receipts of tuition and other approved expenses, such as course materials. Student Loans If you are one of millions of taxpayers with student loans, then you are already familiar with form 1098-E. Be sure to keep an eye out for yours. Student loan servicers will be sending notifications out this month. Hoping for help with the burden of student loans? There’s an interest deduction for that! According to the IRS, you may deduct the “lesser of $2500 that you paid throughout the previous year OR the amount of interest you actually paid during the year.” The amount phases out when you reach the annual limit for your filing status. For more information on educational and student loan credits click here and if you would like to see the format of the tax form for each credit, visit this link here . As always, we are here to help navigate the ins and outs of tax season. Send your questions to us via your client portal by clicking here to log in. We are happy to help and remember, we’re easy to talk to!

We are thrilled to introduce you to your new client portal: ATOM This innovative platform represents a significant step forward in how we interact with our clients, offering several features designed to enhance communication and overall user experience. With ATOM, you will have access to the following: Schedule an appointment Get updates on the status on your tax return Upload and download documents to and from our office Secure messaging functionality In the main menu, clients will see a range of features which include: Viewing upcoming appointments Documents requiring e-signatures, and Messages sent from our CPAs and staff Once you have thoroughly reviewed your information and are confident you have no changes this tax season, simply upload your tax documents and any tax questions you have, and we will begin processing your tax return. Our commitment to excellence means that we will diligently review, verify, and process your information in a timely manner. If you would like to sign up for the client portal, please call 479-876-5599 If you have a portal, but are logging into ATOM for the first time, please follow these instructions: Click here Under Login Selection, please select E-mail from the drop-down menu Enter the E-mail address associated with your account ( primary taxpayer ) Password ( this will be given to you via portal instructions through email or phone ) Click the “Log In” button Should you have any questions, send us a message or give us a call. Remember, we're easy to talk to and we are happy to help!

The Corporate Transparency Act (CTA) went into effect on January 1, 2024. As a result, non-exempt companies (almost all closely held businesses, including LLCs, corporations, and limited partnerships) that are registered to do business within any state in the US (reporting companies) are required to file initial and updated reports (BOI Report) to the US Treasury Department’s Financial Crimes Enforcement Network (FinCEN) about their beneficial owners and company applicant. A “beneficial owner” is an individual who either controls 25% of the ownership interests, or directly or indirectly exercises substantial control over the reporting company. Non-owners (such as managers, officers, directors, etc.) can also be beneficial owners for purposes of the CTA. A “company applicant” is a person responsible for the reporting company’s initial formation or registration. There are 23 types of entities that are exempt from filing BOI reports; however, most entities will not be exempt. For reporting companies formed prior to January 1, 2024, the initial BOI reports are due by January 1, 2025. For reporting companies formed on or after January 1, 2024, and before January 1, 2025, the initial BOI reports are due within 90 days of formation. For reporting companies formed on or after January 1, 2025, the initial BOI reports are due within 30 days of formation. An updated BOI report MUST be filed within 30 days for any changes in the information given about the reporting company or its beneficial owners. For additional information, here is a link to the website for filing. In general, the following information is required to be included to be in the BOI report: Reporting Company Full legal name Any trade or doing business as (dba) name Address for principal place of business in the US Jurisdiction of formation/registration Taxpayer identification number (TIN) Beneficial Owners & Company Applicants Full legal name Date of birth Unique identifying number (i.e. driver's license or passport) Current address Image of the identifying document Failure to comply with the CTA can result in a civil penalty of $500 per violation per day, and a criminal fine and/or imprisonment of up to 2 years. Because the consequences of failing to report are significant, we are alerting you so that you may take whatever action is necessary to comply based on your unique circumstances. PLEASE NOTE: For purposes of clarification, Byrd and Massey will NOT be filing any BOI reports with FinCEN at this time.

Birth Year Acknowledgement If you were born in 1950 or earlier, you should have already started taking your Required Minimum Distributions (RMDs). For those born between 1951 and 1959, you have a bit more time. You can wait until April 1st of the year after you turn 73 to begin taking your RMDs. Those born in 1960 or later will have until April 1 st of the year after turning 75. It's crucial to stay informed and compliant with these regulations to avoid any unnecessary penalties. If you have any questions or need assistance, consult with your financial advisor to ensure you're on the right track. Subsequent RMDs After taking your first RMD, all future RMDs must be taken by December 31 st of each year. If you delay your first RMD until April 1 st of the following year, you will need to take TWO distributions in that year, one by April 1 st and the other by December 31 st . This can have significant tax implications. To ensure you make the best financial decisions, we strongly recommend discussing your RMD strategy with a financial advisor . Stay informed and plan ahead! First RMD Deadline for IRAs If you turned 73 in 2024, a first RMD must be taken by April 1, 2025. This applies to ALL types of IRAs, including SEP and SIMPLE IRAs; however, Roth IRAs are an exception. Roth IRA owners are not required to take RMDs during their lifetime . First RMD Deadline for 401(k) and Other Defined Contribution Plans If you are still working and do not own more than 5% of the company sponsoring your retirement plan, you may be able to delay your first RMD until after retirement. This exception applies exclusively to workplace retirement plans and does not extend to IRAs, SEP IRAs, or SIMPLE IRAs. To discuss tax planning strategies, you can book an advisory appointment online or by giving us a call at 479-876-5599. We are happy to help!

If you have recently married, purchased a home, or had a baby, you are likely aware of the significant life adjustments such milestones present! But you may not realize that major life changes usually have tax implications associated with them. Here are a few things to consider when major life events happen: Getting Married -- What is the best filing status for our financial situation? Should we update our withholding? Buying a House – Do I get a tax break when I buy a house? Having a Baby – Will I be eligible for the child tax credit? Changing Jobs – I’m making more money. Should I bump up my withholding? Sending Kids to College – Can I claim tax credits and deductions for the education-related expenses I paid for my child? Does it make more sense for my child to take the credits? Going Through a Divorce – What filing status do I qualify for after a divorce? Getting Ready to Retire – Should I be concerned about the tax implications of required minimum distributions? Will I pay taxes on my Social Security benefits? If you are a Returning Tax Client , the above questions can be addressed via a note enclosed with your tax organizer and documents, and your CPA will review and acknowledge it accordingly. If you are new to the firm, a sit-down meeting is required so a CPA can understand your previous year and current tax situation moving forward. There is no fee for this meeting; however, should you need to discuss tax planning in a more detailed manner, you can schedule an advisory appointment online or give us a call at 479-876-5599. As always, we are here to help and we're easy to talk to!

Thinking about going green with a new plug-in electric vehicle (EV) or fuel cell vehicle (FCV)? You might qualify for a clean vehicle tax credit of up to $7,500! If you place your new EV or FCV in service in 2023 or later, ensure the seller provides information about the vehicle's qualifications AND reports it to the IRS. Without this, your vehicle will not be eligible for the credit. Eligibility requirements include: - Buying the vehicle for personal use, not resale - Using it primarily in the U.S. - Meeting specific income thresholds -$300,000 for married couples filing jointly (or a surviving spouse) -$225,000 for heads of households -$150,000 for all other filers For vehicles placed in service from April 18, 2023, additional critical mineral and battery component requirements apply and can be found here . To claim the credit, you will need to file Form 8936 with your tax return. Please be sure to get a time-of-sale report from the dealer. **Please note that as of January 1, 2024, Clean Vehicle Tax Credits MUST be initiated & approved AT THE TIME OF SALE. For more information on purchasing clean vehicles and the clean vehicle tax credit, visit the following IRS websites: Credits for NEW Clean Vehicles Purchased in or After 2023 Transferring Clean Vehicle Tax Credits How to Claim a Clean Vehicle Tax Credit Drive green and save green!