The Big Beautiful Bill Act: Building a Stronger Future for Our Communities

In a time when communities across America are struggling with rising costs, outdated infrastructure, and a lack of opportunity, the Big Beautiful Bill Act (BBBA) has emerged as a bold vision for change. This act isn’t just about funding programs — it’s about creating a long-lasting foundation where families, small businesses, and local economies can thrive.

What Is the Big Beautiful Bill Act?

The Big Beautiful Bill Act is a proposed legislative package designed to revitalize neighborhoods, strengthen small businesses, and expand access to essential services. At its core, the Act is focused on three pillars:

1. Infrastructure & Housing

Reinvesting in safe, modern, and affordable housing.

Expanding broadband access to underserved communities.

Repairing roads, bridges, and public transit systems that connect people to opportunities.

2. Small Business & Job Growth

Tax credits and grants for small business owners.

Support for minority-owned businesses and startups.

Incentives for job creation and workforce development programs.

3. Fairness & Community Investment

Expanding access to healthcare and child care.

Strengthening retirement security for working families.

Investing in education and training to prepare the next generation.

Why It Matters

The Big Beautiful Bill Act isn’t just about dollars — it’s about building confidence in the American dream. Families deserve safe homes, affordable services, and the chance to prosper without being left behind. Small business owners deserve the resources to grow and hire locally. And communities deserve investments that create both immediate jobs and long-term stability.

By addressing infrastructure, fairness, and opportunity all at once, the BBBA positions itself as one of the most comprehensive community-building initiatives in recent history.

Advocacy: Why We Should Support It

For Families: The Act tackles the rising costs of living by boosting affordable housing, lowering the strain of childcare, and making education more accessible.

For Small Businesses: Entrepreneurs will gain critical access to tax breaks, training programs, and financial support, helping them compete in today’s fast-changing economy.

For Communities: By investing in roads, broadband, and green spaces, the Act ensures that no neighborhood is left behind.

Closing Thoughts

The Big Beautiful Bill Act represents a vision of shared prosperity. It’s not just about government spending — it’s about strategic investment in people, places, and progress. By supporting this Act, we’re saying “yes” to stronger families, thriving small businesses, and vibrant communities.

Now is the time to push for bold, beautiful change. The BBBA is more than a bill — it’s a blueprint for the future.

The Work Opportunity Tax Credit is available until the end of 2025

Finding a job can be a challenge and for certain groups, it can be even harder. The Work Opportunity Tax Credit is a federal tax credit available to employers for hiring individual from certain groups who consistently face significant barriers to employment.

The Work Opportunity Tax Credit is available until Dec 31,2025, for employers that hire workers who are qualified as part of these groups

Groups

Qualified recipients of:
Long-term family assistance
Long-term unemployment
Supplemental Nutrition Assistance Program benefits
Supplemental Security Income
A state program funded under part A of title IV of the Social Security Act relating to Temporary Assistance for Needy Familie

2. Formerly incarcerated individuals

3. Qualified unemployed veterans, including disabled veterans

4. Designated community residents living in empowerment zones or rural renewal counties

5. People referred to vocational rehabilitation programs

6. Summer youth employees living in Empowerment Zones

Certification requirement

To claim the credit, an employer must first get certification that an individual is certified as a member of one of the groups listed above. To do this, the employer submits IRS Form 8850, Pre-screening Notice and Certification Request for the Work Opportunity Credit, to their state workforce agency within 28 days after the eligible worker begins work. Employers should not submit this form to the IRS. They should contact their state workforce agency with questions about processing Form 8850.

Figuring and claiming the credit

Eligible businesses claim the Work Opportunity Tax Credit on their federal income tax return. It’s generally based on wages paid to eligible workers during the first year of employment. After the employer receives the Form 8850 certification from the state workforce agency, they can:

Figure the credit with Form 5884, Work Opportunity Credit
Claim it on Form 3800, General Business Credit

Special rule for tax-exempt organizations

A special rule allows tax-exempt organizations to claim the credit only for hiring qualified veterans who began work for the organization before 2026. After the employer receives the Form 8850 certification from the state workforce agency, these organizations claim the credit against payroll taxes on Form 5884-C, Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans. The IRS recommends that qualified tax-exempt employers don’t reduce their required deposits as they wait for the tax credit.

Limitations on the credit

For a taxable business, the credit is limited to the business’ income tax liability. Unused credit is subject to the normal carry-back and carry forward rules. For qualified tax-exempt organizations, the credit is limited to the amount of the employer’s share of Social Security tax it owes on wages it paid to qualifying employees. See the instructions for Form 3800, General Business Credit for full details.

Interest rates remain the same for the fourth quarter of 2025

WASHINGTON — The Internal Revenue Service today announced that interest rates will remain the same for the calendar quarter beginning Oct. 1, 2025.

For individuals, the rate for overpayments and underpayments will be 7% per year, compounded daily. Here is a complete list of the rates:

7% for overpayments (payments made in excess of the amount owed), 6% for corporations.
5% for the portion of a corporate overpayment exceeding $10,000.
7% for underpayments (taxes owed but not fully paid).
9% for large corporate underpayments.

Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points.

Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points and the overpayment rate is the federal short-term rate plus 2 percentage points. The rate for large corporate underpayments is the federal short-term rate plus 5 percentage points. The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point.

The interest rates announced today are computed from the federal short-term rate determined during July 2025. See the revenue ruling for details.

Revenue Ruling 2025-18 announcing the rates of interest will appear in Internal Revenue Bulletin 2025-37, dated Sept. 8, 2025.

Out-of-pocket classroom costs could be offset with Educator Expense Deduction

It’s back to school season, and with that comes potential out-of-pockets costs for educators. The Educator Expense Deduction lets eligible teachers and administrators deduct certain expenses from their taxes.

Eligible educators
The taxpayer must be a kindergarten through grade 12 teacher, instructor, counselor, principal or aide and work at least 900 hours a school year in a school that provides elementary or secondary education as determined under state law.

About this deduction
Educators can deduct up to $300 of certain trade or business expenses that weren’t reimbursed by their employer, grant or other source. If two married educators are filing a joint return, the limit rises to $600. These taxpayers can’t deduct more than $300 each.

Qualified expenses are amounts the taxpayer paid themselves during the tax year.

Some of the expenses an educator can deduct include:

Professional development course fees
Books and supplies
Computer equipment, including related software and services
Other equipment and materials used in the classroom

The Process of Tax Planning: A Step-by-Step Guide

By Jose’s Tax Service, New Haven, CT

Tax planning isn’t just about filing your return once a year—it’s about creating a strategy that helps you keep more of your hard-earned money and prepares you for future financial success. At Jose’s Tax Service, we believe proactive tax planning can make the difference between paying unnecessary taxes and maximizing your savings.

Why Tax Planning Matters

Every financial decision you make—whether it’s saving for retirement, starting a small business, or investing in real estate—has a tax impact. Without a plan, you may miss out on deductions, credits, or strategies that could lower your tax liability. Tax planning ensures you’re not only compliant but also efficient in the way you manage your money.

Step 1: Assess Your Current Financial Picture

The first step in tax planning is to understand your current situation. This includes:
Reviewing income sources (wages, self-employment, investments)
Evaluating expenses and possible deductions
Checking your filing status and dependents
Reviewing last year’s return for missed opportunities

At Jose’s Tax Service, we take the time to walk through your financial picture so we can identify strategies tailored to you.

Step 2: Identify Tax-Saving Opportunities

Once we know where you stand, we look at every possible deduction and credit available. Examples include:

Small business deductions for home offices, equipment, and vehicles
Retirement contributions (401(k), IRA, or HSA accounts)
Education credits such as the American Opportunity or Lifetime Learning Credit
Energy efficiency credits for certain home improvements

These opportunities add up—and proper planning ensures you don’t miss them.

Step 3: Create a Tax Strategy

Tax planning isn’t one-size-fits-all. Together, we’ll develop a personalized strategy that may include:

Adjusting your withholdings or estimated payments
Timing major purchases or investments for maximum benefit
Structuring your business income for better deductions
Planning for retirement contributions to reduce taxable income

Our goal is to make sure you’re not overpaying taxes now and that you’re set up for future savings.

Step 4: Implement Throughout the Year

Tax planning isn’t just a once-a-year conversation. It requires check-ins and adjustments throughout the year, especially if your situation changes (new job, new business, marriage, or home purchase). We serve as your concierge tax professionals, available year-round to help you stay on track.

Step 5: Review and Adjust Annually

The tax code changes often, and so does life. Each year, we’ll review your tax plan and make updates to reflect any new opportunities, ensuring you’re always in the best position possible.

Jose’s Tax Service Difference

At Jose’s Tax Service, we don’t just prepare taxes—we partner with you to create peace of mind and long-term financial confidence. Whether you’re an individual taxpayer or a small business owner in New Haven and beyond, we’re here to guide you every step of the way.

📞 Call us today to schedule your personalized tax planning consultation!

✅ Take Control: Tax Planning Starts Today.

Don’t wait until April to think about your taxes—start planning now and watch the savings grow

Important reminders for extension filers choosing a tax preparer

Taxpayers who requested an extension to file have until Oct. 15, 2025, to do so, and some may choose to hire a tax return preparer. Those who do need to understand how to choose a tax preparer wisely and how to work with them.

What to consider when choosing a tax return preparer
Taxpayers should keep these things in mind when looking for a tax return preparer.

Make sure the preparer is available year-round. If questions come up about a tax return, taxpayers may need to contact the preparer after the return has been filed.
Review the preparer’s history. Taxpayers should understand the preparer’s credentials and qualifications and can also check the IRS Directory of Federal Tax Return Preparers for enrolled agents or verify an enrolled agent’s status online.

Additionally, the Better Business Bureau may be a resource for information about the preparer, including any disciplinary actions and the license status for credentialed preparers. Other resources include the State Board of Accountancy’s website for CPAs and the State Bar Association for attorneys. Tax return preparers who participate in the Annual Filing Season Program may represent taxpayers in limited situations if they prepared and signed the tax return.

Ask about service fees. Taxpayers should avoid tax return preparers who base their fees on a percentage of the refund or who offer to deposit all or part of the refund into their own financial accounts. Be wary of tax return preparers who claim they can get larger refunds than their competitors.
Ensure the preparer offers IRS e-file. The IRS issues most refunds in fewer than 21 days for taxpayers who file electronically and choose direct deposit.
Tips for working with a tax preparer
These are a few things taxpayers should keep in mind when they work with a tax preparer:
Good preparers ask to see records and receipts. They’ll also ask questions to determine the client’s total income, deductions, tax credits and other items. Taxpayers should avoid a tax return preparer who e-files using pay stubs instead of W-2s. This is against IRS rules.
Taxpayers should review the tax return before signing it. They should ask questions if something is unclear or inaccurate.
Any refund should go directly to the taxpayer – not into the preparer’s bank account. Taxpayers should make sure the routing and bank account numbers on the completed return are accurate.
Taxpayers are responsible for filing a complete and correct tax return. They should never sign a blank or incomplete return and never hire a tax return preparer who asks them to do so.
Ensure the preparer signs and includes their PTIN. By law, anyone who is paid to prepare or help prepare federal tax returns must have a valid Preparer Tax Identification Number, and they must sign and use that PTIN on any tax return they prepare. Not doing so is a red flag that the paid preparer may be looking to make a quick profit. Taxpayers should avoid these unethical tax return preparers.

Report misconduct
Taxpayers can report tax preparer misconduct to the IRS.

Self-Employed? Here’s How to Stay Ahead of Tax Season

Jose’s Tax Service | Trusted. Transparent. Tax-Smart.

Being your own boss comes with freedom — and a whole lot of responsibility. When you’re self-employed, tax planning is year-round, not just in April.
At Jose’s Tax Service, we help freelancers, gig workers, and small business owners avoid surprises, reduce tax bills, and stay compliant with simple strategies.

Who Counts as Self-Employed?

You’re considered self-employed if you:
– Run a business as a sole proprietor or single-member LLC
– Work freelance or contract jobs (like 1099-MISC or 1099-NEC)
– Drive for Uber, deliver for DoorDash, or run an Etsy shop
– Do side gigs with no employer tax withholding

Know Your Tax Responsibilities

As a self-employed individual, you’re responsible for:
– Self-employment tax (15.3% for Social Security & Medicare)
– Quarterly estimated taxes (due 4x/year)
– Income tax on your business profit
– Keeping detailed records of income and expenses

Deductions You Can Claim

Maximize what you keep by deducting legitimate business expenses:
– 💻 Computers, software, and subscriptions
– 🚘 Business mileage and travel
– 📞 Phone and internet used for business
– 🏢 Home office (if it’s a dedicated workspace)
– 🧾 Advertising, website hosting, business cards
– 📚 Education, coaching, or courses related to your trade

Jose’s Tax Service ensures your deductions are optimized and audit-proof.

Don’t Forget Quarterly Taxes!

Due Dates:
– April 15
– June 15
– September 15
– January 15 (of the next year)

We calculate your estimated payments based on last year’s profit or current income trends — whichever works best for you.

How We Help Self-Employed Clients

– Set up a Quarterly Tax Plan
– Provide Bookkeeping solutions or clean-up
– Track expenses through apps like QuickBooks Self-Employed
– Prepare Schedule C filings with accuracy and strategy
– Help form LLCs or S Corps for future tax savings

Real Results, Real Clients

“As a freelance photographer, I never knew what I owed until it was too late. Now I have a system, I’m saving monthly, and my refund actually grew. Jose’s Tax Service saved me a ton.”
— B. Hart, Photographer & Designer, CT

You’re in Business — Treat It That Way.

📞 Call 475-254-9373
📍 New Haven, CT – Supporting Self-Starters Nationwide
🌐 Let’s get your tax plan started at Josestaxservice.com

Tax Tips for Landlords and Rental Property Owners

Jose’s Tax Service | Trusted. Transparent. Tax-Smart.

Owning rental property is a great way to build long-term wealth, but it also comes with complex tax responsibilities.
At Jose’s Tax Service, we help landlords maximize deductions, stay compliant, and avoid red flags — whether you have one rental or a full portfolio.

What Rental Income You Must Report

The IRS requires you to report all rental income, including:
– Monthly rent received
– Security deposits you kept
– Lease cancellation fees
– Payments from tenants for services (e.g., lawn care, utilities)

Deductions You Shouldn’t Miss

Rental property offers generous deductions — if you know where to look:
– 🔧 Repairs and maintenance
– 🧾 Property taxes and mortgage interest
– 🧼 Cleaning, pest control, and landscaping
– 🛠️ Depreciation of the property and appliances
– 💼 Property management fees
– 📱 Phone, mileage, and office supplies
– 🏢 Home office if you manage the rentals yourself

Jose’s Tax Service tracks and categorizes these for you — so you keep more of what you earn.

Passive Income ≠ Passive Attention

Even though rental income is considered “passive,” you still need to actively manage your records, receipts, and expenses.
We recommend landlords use a bookkeeping system like QuickBooks or Stessa to log income and categorize expenses monthly.

Watch Out for These Common Landlord Mistakes

🚫 Forgetting to claim depreciation
🚫 Not tracking mileage for property visits
🚫 Reporting improvements as repairs
🚫 Paying contractors without collecting W-9s
🚫 Not issuing 1099s to vendors

What Jose’s Tax Service Offers for Landlords

– Year-round tax support and strategy
– Help determining what’s a repair vs. improvement
– Recordkeeping tools for income/expense tracking
– Year-end preparation and 1099 filing for contractors
– Multi-property portfolio tax planning

Real Results, Real Clients

“I had no idea I was missing so many deductions on my rentals. Jose helped me get organized and lower my tax bill by $3,800 last year!”
— C. Nguyen, Multi-Unit Owner, New Haven, CT

Own Rentals? Let’s Keep Your Taxes Working for You.

📞 Call 475-254-9373
📍 New Haven, CT – Trusted by Landlords Nationwide
🌐 Visit Josestaxservice.com to book your landlord tax consult

The IRS Letter Just Came—Now What?

Jose’s Tax Service | Trusted. Transparent. Tax-Smart.

Opening your mailbox and seeing a letter from the IRS can be enough to send your heart racing. But don’t panic. Not all IRS letters are bad news — and even if there’s an issue, you often have options.
At Jose’s Tax Service, we help clients respond to IRS notices quickly, accurately, and stress-free — so you can resolve issues before they become bigger problems.

Types of IRS Letters You Might Receive

– CP2000 – A mismatch between your return and IRS records
– Letter 4883C – The IRS needs to verify your identity
– Notice of Balance Due – You owe taxes from a current or prior year
– Notice of Intent to Levy – A serious warning before collections begin
– Missing Return Notices – You didn’t file a required return

What to Do When You Receive One

Read It Carefully – Each notice includes a letter number, date, reason, and response deadline.
Don’t Ignore It – Even if you think it’s a mistake, responding is crucial.
Gather Your Documents – Tax return, W-2s, 1099s, and related documents.
Call Jose’s Tax Service – We’ll review the notice and help you respond properly.

How We Help

– Responding to IRS and state notices on your behalf
– Amending your return if needed
– Communicating directly with the IRS to resolve errors
– Setting up payment plans or hardship options
– Filing appeals when appropriate

Common IRS Letter Mistakes People Make

🚫 Ignoring the notice because they’re scared
🚫 Calling the IRS without understanding what to say
🚫 Paying money they may not actually owe
🚫 Missing the deadline to respond or appeal

Real Results, Real Clients

“I got a CP2000 saying I owed $3,000. Jose reviewed my return, found an error on their end, and I ended up getting a $600 refund instead. Total lifesaver.”
— M. Sanders, New Haven, CT

Don’t Go It Alone. We Deal with the IRS for You.

📞 Call 475-254-9373
📍 Based in New Haven, CT – Helping Taxpayers Nationwide
🌐 Visit Josestaxservice.com to upload your IRS letter securely

How to Use Your Tax Refund Strategically

Jose’s Tax Service | Trusted. Transparent. Tax-Smart.

Getting a tax refund feels great — but what you do with that money can make a big difference.

Instead of spending it all at once, consider using your refund to strengthen your financial future, reduce debt, or reinvest in your business or family. At Jose’s Tax Service, we help clients turn tax refunds into real opportunities.

Smart Ways to Use Your Refund

1. Pay Off High-Interest Debt

Credit cards with 18–25% interest? Knocking down that balance is like getting a guaranteed return on your money.

2. Start or Boost an Emergency Fund

Aim for 3–6 months of expenses in savings. Your refund can give you a solid cushion.

3. Contribute to a Retirement Account

Put your refund into an IRA or Roth IRA and let it grow tax-free for decades. You might even get an extra tax deduction.

4. Invest in Your Small Business

Upgrade equipment, hire help, launch that ad campaign — reinvest in what generates income.

5. Make Home Improvements

Energy-efficient upgrades can qualify for tax credits and lower your utility bills.

6. Prepay Bills or Insurance

Get ahead on car insurance, mortgage payments, or other fixed bills. Future-you will thank you.

7. Save for Education

Start or contribute to a 529 college savings plan — it grows tax-free and helps reduce future tuition stress.

What to Avoid

– 💳 Impulse spending with no plan
– 🛍️ Big purchases that lose value quickly
– 🕒 Waiting too long to deposit the refund or use it wisely
– 😓 Using refund anticipation loans (they come with steep fees)

How Jose’s Tax Service Helps

– We help estimate your refund before it arrives
– Offer refund planning sessions to create a strategy
– Help direct refund amounts into multiple accounts (savings, IRA, business)
– Track how refund usage can impact next year’s taxes

Real Results, Real Clients

“Instead of just blowing my refund, Jose helped me use it to pay off my credit card, fix my car, and put $500 into a Roth IRA. It felt amazing to have a plan.”
— T. Barnes, Freelance Designer, CT

Maximize Your Refund’s Impact

📞 Call 475-254-9373
📍 New Haven, CT – Helping Smart Filers Nationwide
🌐 Let’s plan your refund at Josestaxservice.com