New Era of Digital Asset Tax Reporting (FORM 1099-DA)

The Internal Revenue Service is expanding its oversight of digital asset transactions, and Form 1099-DA represents one of the most significant regulatory developments affecting cryptocurrency investors, traders, and businesses. As digital assets become more integrated into the financial system, tax reporting expectations are shifting toward greater structure, transparency, and enforceability.

What Is Form 1099-DA

Form 1099-DA, Digital Asset Proceeds From Broker Transactions, is a new information return required under Internal Revenue Code Section 6045, as amended by the Infrastructure Investment and Jobs Act. The form is designed to report proceeds from the sale or disposition of digital assets, including cryptocurrencies and certain stablecoins.

Under IRC Section 6045(g)(3), digital assets are treated similarly to specified securities for information reporting purposes, placing digital asset brokers under reporting obligations historically applied to stock and bond transactions.

Who Must Issue Form 1099-DA

IRC Section 6045(c)(1) defines a broker as any person who, for consideration, regularly acts as an intermediary with respect to sales of property. Recent amendments expanded this definition to include digital asset brokers who facilitate transfers or dispositions on behalf of customers.

As a result, centralized cryptocurrency exchanges and other qualifying intermediaries are generally required to issue Form 1099-DA to customers and file copies with the IRS. The application of these rules to decentralized platforms continues to evolve as Treasury regulations are finalized.

What Information Is Reported

Form 1099-DA reports gross proceeds from digital asset dispositions, consistent with IRC Section 6045(a). At this stage, cost basis reporting may be limited depending on the type of digital asset and the broker’s ability to track historical transaction data.

It is critical to note that gross proceeds alone do not determine taxable income. Under IRC Section 1001(a), taxable gain or loss is calculated as the difference between the amount realized and the taxpayer’s adjusted basis in the asset.

Why This Matters for Taxpayers

Even if a taxpayer receives Form 1099-DA, the responsibility for accurate reporting remains with the taxpayer. IRC Section 6001 requires taxpayers to maintain sufficient records to substantiate income, deductions, and basis.

Relying solely on Form 1099-DA without reconciling personal records can lead to overstated taxable income or underreported losses, particularly where cost basis is incomplete or missing.

Increased Enforcement and Transparency

Form 1099-DA reflects the IRS’s broader effort to increase compliance in the digital asset space. IRC Section 7602 grants the IRS broad authority to examine records and verify information returns, reinforcing the importance of accurate reporting.

Additionally, failure to properly report digital asset transactions may expose taxpayers to accuracy-related penalties under IRC Section 6662, as well as information return penalties under IRC Sections 6721 and 6722 when applicable.

Practical Steps to Prepare

Taxpayers engaging in digital asset transactions should strengthen their documentation practices by tracking acquisition dates, cost basis, transaction fees, wallet transfers, and taxable events.

Need Help With Form 1099-DA or Digital Asset Tax Reporting?

If you have questions about Form 1099-DA, cryptocurrency reporting, or how digital asset transactions impact your tax return, our team at JCox CPAs & Advisors, P.C. is here to help. We work with individuals and businesses to ensure digital asset activity is reported accurately, compliantly, and in line with current IRS guidance.

Whether you need help reconciling Forms 1099-DA, calculating gains and losses, or filing your tax return with confidence, reach out to JCox CPAs & Advisors, P.C. to get your questions answered and your taxes filed correctly.

Contact us today to schedule a consultation and take the uncertainty out of digital asset tax reporting.

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2025 Tax Season Is Here

Tax Season Is Here and JCox Is Accepting New Clients

Tax season can be stressful, time-consuming, and expensive when you are not getting proactive guidance or clear communication. At JCox CPAs & Advisors, our goal is simple: make tax season easier, more strategic, and more cost-effective for individuals and business owners.

We are currently accepting new tax clients, and for a limited time, clients who switch to JCox can save 45% on their first year of tax filing.

Why Switch to JCox This Tax Season

Many taxpayers come to us after years of feeling rushed, confused, or surprised by their tax results. At JCox, tax preparation is not just about filing forms. It is about understanding your full financial picture and positioning you for better outcomes moving forward.

When you work with JCox, you receive:
• Clear, professional communication throughout the process
• Accurate, compliant tax preparation
• Strategic insight tailored to your situation
• A firm that understands both compliance and long-term planning

Whether you are an individual, self-employed professional, investor, or business owner, we take the time to get it right.

Save 45% When You Switch

To make switching easy, JCox is offering 30% off your first year of tax filing for new clients who transition to our firm. This offer is designed to remove the friction of changing providers while giving you immediate value.

This is ideal if you:
• Are unhappy with your current tax preparer
• Want more proactive tax planning
• Need a CPA who understands business, investments, and growth
• Prefer a firm that prioritizes accuracy and responsiveness

Now Is the Time

Tax season fills up quickly, and availability is limited. Waiting too long can mean delays, missed planning opportunities, or unnecessary stress. Switching early allows us to review your information properly and identify opportunities before filing deadlines approach.

If you are ready for a smoother tax season and meaningful savings, now is the time to make the move.

Ready to Get Started?

JCox is accepting new clients now. Switch this tax season and save 30% on your first year of filing.

Reach out today to secure your spot and take advantage of this limited-time offer.

2026 Tax Filing Season Opening Date and Preparation Tips

The Internal Revenue Service has confirmed that the 2026 federal tax filing season will officially begin on January 26, 2026, when the IRS begins accepting and processing individual income tax returns for tax year 2025. Taxpayers should prepare now to ensure an accurate and timely filing.

When the IRS Starts Accepting Returns

The IRS will start accepting 2025 individual tax returns on January 26, 2026. This is the earliest date taxpayers can submit their federal income tax returns for processing. Most taxpayers who plan to file electronically or through tax professionals will follow this launch date.

Deadline to File and Pay Taxes

Federal individual income tax returns for the 2025 tax year are due on April 15, 2026. Filing by this date helps taxpayers avoid penalties and interest. If taxpayers cannot complete their return by April 15, they can file Form 4868 with the IRS to request an automatic extension. Note that requesting an extension extends the time to file, not the time to pay any tax owed.

Documents You Should Gather Now

To file efficiently when the season opens, taxpayers should collect:

• W-2 wage and tax statements from employers

• From the 1099 series for interest, dividends, retirement distributions, and contractor income

• Receipts for deductible expenses such as charitable contributions and qualified education costs

• Records of estimated tax payments made during 2025

You can also download our free Tax Organizer Checklist by Filing status here to help stay organized: Tax Organizers & Forms

Changes to Refund Delivery and Filing Options

For the 2026 filing season, the IRS will emphasize electronic filing and direct deposit for refunds as the agency phases out paper refund checks. Taxpayers should ensure their bank information is accurate when filing to receive refunds quickly and securely.

The IRS Free File program remains available to eligible taxpayers with adjusted gross incomes below certain thresholds, offering a free option to prepare and submit their federal returns electronically.

Plan for Estimated Payments

The fourth quarter estimated tax payment for the 2025 tax year is due January 15, 2026. Taxpayers who are self-employed or have other income without withholding should not overlook this deadline to avoid underpayment penalties.

New Client Incentive

New clients who switch to JCox CPAs & Advisors, P.C. receive 30% off their first year of services, plus a complimentary tax planning report at onboarding and a mid year tax planning review. This proactive approach helps identify tax savings opportunities early and adjust strategies before year-end.

2026 Retirement Plan Contribution and Benefit Limits

The Internal Revenue Service has released updated retirement plan contribution limits to reflect cost-of-living adjustments under the Internal Revenue Code (Notice 2025-67). These changes impact employee deferrals, catch-up contributions, employer contributions, and IRA planning and are especially important for year-end tax planning.

2026 401(k), 403(b), and 457(b) Contribution Limits

Under Internal Revenue Code Section 402(g), the maximum elective deferral limit for 2026 is $24,500. This limit applies in total across all employer-sponsored retirement plans and includes both traditional and Roth deferrals. Contributions to traditional 401(k) plans are made on a pretax basis and reduce taxable income in the year of contribution, while Roth contributions are made with after tax dollars but allow for tax free growth and distributions if requirements are met.

Catch Up Contributions for Individuals Age 50 and Older

Internal Revenue Code Section 414(v) allows individuals aged 50 or older to make additional catch-up contributions. For 2026, the standard catch-up contribution is $8,000. In addition, individuals ages 60 through 63 may qualify for an enhanced catch-up contribution of $11,250 if the retirement plan allows it.

Beginning in 2026, the SECURE 2.0 Act requires that catch-up contributions for employees with prior year wages exceeding $150,000 be designated as Roth contributions. If an employer plan does not allow Roth catch-up contributions, these individuals may not be able to make catch-up contributions at all.

Total Annual Contribution Limit

Internal Revenue Code Section 415(c) limits the total amount that can be contributed to a participant’s retirement account in a single year. For 2026, the total contribution limit is $72,000. This includes employee deferrals, employer matching contributions, profit-sharing contributions, and forfeitures. Catch-up contributions are not included in this limit.

IRA Contribution Limits

Under Internal Revenue Code Section 219, the contribution limit for traditional and Roth IRAs for 2026 is $7,500. Individuals aged 50 or older may contribute an additional $1,100 as a catch-up contribution. Eligibility to deduct traditional IRA contributions or to contribute to a Roth IRA is subject to modified adjusted gross income limits.

Income Phase Outs and Planning Considerations

Taxpayers covered by a workplace retirement plan may have their traditional IRA deduction phased out at higher income levels. Roth IRA contributions are also subject to income-based phase-outs. Taxpayers whose income exceeds Roth IRA limits may still consider a backdoor Roth IRA strategy, subject to Internal Revenue Code Section 408A.

2026 Retirement Plan Contribution and Benefit Limits Summary

Action Steps for 2026

Taxpayers should consider maximizing their retirement contributions to take advantage of tax-deferred growth and current-year tax savings.

Employers should review plan documents to ensure compliance with Roth catch-up rules and SECURE 2.0 requirements. Coordinating employer plan contributions with IRA strategies can significantly enhance long-term retirement outcomes.

2026 Tax Filing and Refund Dates: What to Expect

Our current turnaround times are as follows:

• Individual Income Tax Returns: 4 days

• Partnerships, C-Corporations, and S-Corporations: 4 days

These timeframes encompass thorough review and quality control processes, ensuring that your tax filings are both prompt and precise.

Understanding the timeline for receiving your tax refund is crucial for financial planning. The IRS typically issues refunds within 21 days after accepting an electronically filed return.

To provide a clearer picture, here's an estimated timeline for 2026 tax refunds based on the IRS acceptance date of your e-filed return:

Track YOUR Federal Refund Here: IRS.gov

Purpose in Every Detail: How Our Gift Box Reflects Our Larger Mission

When we designed our client gift box, we wanted it to be more than a thoughtful gesture; we wanted it to embody the same intentionality that drives our work at JCox CPAs & Advisors, P.C. Every detail, down to the box itself, was chosen with care. The box doubles as a practical storage solution, giving clients a dedicated place to collect receipts, invoices, and important documents as they go about their busy lives.

Our goal was simple: to help clients stay organized and focused on running their businesses, without the added stress of clutter or misplaced paperwork. Too often, valuable time and energy are lost in the search for missing documents when it matters most. By offering a tool as simple as this box, we provide clients with peace of mind, knowing everything they need is in one place. And when tax season or financial planning comes around, this intentional design pays off even more. Clients can simply request a pickup of their documents, confident that their records are already gathered, secure, and ready for review.

The Meaning Behind Each Client Gift

Each item inside the gift box was selected with the purpose of reflecting not only practicality but also the values of our firm:

• JCox Notebook – A place for clients to jot down thoughts, goals, or meeting notes, serving as a reminder that clear planning leads to clear results.

•  JCox Dual USB/USB-C Flash Drive – A modern tool that makes it easy to back up and share files, symbolizing how we bridge traditional accounting with today’s digital demands.

•  JCox Flask Bottle – A reminder to stay refreshed and take care of one’s health, because running a business requires balance as much as it requires effort.

•  JCox Pen & Sticky Notes – Simple, everyday tools to capture ideas and track reminders, reinforcing our belief that no detail is too small when it comes to success.

•  JCox Tote Bag – A practical, reusable way to carry materials, representing our commitment to sustainability and providing clients with resources they can use beyond the office.

Together, these items serve as a toolkit for staying organized, connected, and prepared. They are not just branded tokens; they are a reflection of our values: commitment, engagement, and responsiveness. From keeping receipts in the gift box to saving files on the flash drive or carrying essentials in the tote, each piece was chosen to support our clients in meaningful, practical ways.

One of our clients, Bryce Crawford [1], has found the JCox power bank to be an essential tool. As he travels across states sharing the gospel through street evangelism and social media, Bryce uses the power bank to keep his devices charged and his ministry connected. What may seem like a simple gift serves a greater purpose, supporting his mission to bring the hope and love of Jesus to communities everywhere.

At JCox CPAs & Advisors, P.C., even the smallest details are designed with purpose. Just as our professional services are tailored to help clients succeed, our client gift box is a tangible reminder that we are here to walk alongside them every step of the way.

JCox Partnership Alliance: Gifts as a Reflection of Our Commitment

When we designed our client gift box, we wanted it to represent more than appreciation. It was created with purpose, giving clients practical tools to stay organized, connected, and prepared. In the same way, our broader mission at JCox CPAs & Advisors, P.C. is to design solutions, not just for individuals, but also through the partnerships we build.

Just as we are intentional in financial reporting, tax strategy, and advisory, we are intentional in how we honor and strengthen our partnership alliance. Our gifts represent a small but meaningful way of saying that at JCox, we view every partnership as a true alliance, one designed to create lasting impact for both our collaborators and the clients we serve together.

Over the past two years, we have taken intentional steps to form partnerships that create greater value and peace of mind for our clients. These partnerships extend the same thoughtfulness we put into our gifts into the way we serve on a larger scale.

Here are some of the key initiatives we’ve developed:

• Partnering with local CPA firms to provide specialized expertise for complex client engagements. This allows us to collaborate and ensure that no challenge is too large for our clients to navigate.

• Partnering with law firms through our JCox Legal Concierge [2] initiative, offering clients access to attorneys in areas such as business litigation, business transactions, and family matters.

• Partnering with wealth management firms to help clients plan for the future with confidence, providing holistic guidance on everything from retirement planning to asset protection.

• Partnering with technology leaders to enhance accounting processes, streamline payroll, and strengthen financial reporting. These collaborations allow us to integrate advanced tools directly into our clients’ businesses, improving accuracy, efficiency, and real-time insights.

Together, these partnerships create a one-stop platform for our clients, a place where accounting, advisory, tax, legal, and wealth management needs are not separate hurdles but part of one seamless experience.

At the heart of everything we do is a commitment to serve clients not just with financial expertise, but with tools, partnerships, and experiences that create clarity and peace of mind. From the smallest details to the largest collaborations, we strive to ensure that our work is purposeful, practical, and deeply rooted in values that stand the test of time.

We are grateful for the trust our clients place in us and for the partnerships that make our work possible. At JCox CPAs & Advisors, P.C., every relationship matters. Whether you are a client, a partner, or a future collaborator, we thank you for walking with us as we continue building purposeful solutions, grounded in values that last.

[1] Bryce Crawford is the Founder and CEO of Jesus in the Street, Inc., a 501(c)(3) Christian nonprofit dedicated to sharing the gospel through social media and street evangelism. After a transformative personal experience, Bryce committed his life to bringing the hope, light, and love of Jesus to urban communities and marginalized individuals. As a Gen Z influencer, he leverages digital platforms alongside in-person ministry to connect with diverse audiences, offering encouragement, biblical truth, and practical hope. His unique approach allows him to bridge generational gaps, using both technology and grassroots outreach to advance the mission of Christ. His Instagram @brycecrawford his other social media links: brycecrawfordministries  ilovejesus

[2] Details coming soon.

One Big Beautiful Bill Signed into Law: A Comprehensive Analysis

On July 4, 2025, President Donald Trump signed into law the One Big Beautiful Bill (OBBB), following a razor-thin 51–50 Senate vote, where Vice President J.D. Vance cast the decisive tie-breaker. This landmark legislation, which largely reflects the Senate’s version previously approved by the House of Representatives, represents one of the most significant tax and spending reforms enacted in recent years.

The bill’s breadth spans extensions of the Tax Cuts and Jobs Act (TCJA) provisions, targeted new tax breaks, alterations to social safety nets, and increased government spending in defense and immigration enforcement. For tax professionals, policymakers, and taxpayers, a detailed understanding of the bill’s provisions, along with their underpinning Internal Revenue Code (IRC) references, is critical to strategic tax planning and compliance.

I. Extension and Enhancement of TCJA Tax Provisions

Sections 101 and related provisions of the OBBB permanently extend critical components of the TCJA through 2028, preventing the expiration of several popular tax breaks. Key among these are:

• Individual and Corporate Income Tax Rates (IRC § 1): The marginal income tax rates for individuals and corporations remain at the lower levels established by the TCJA. This continuation provides stability and certainty for taxpayers facing planning decisions.

• Qualified Business Income Deduction (IRC § 199A): The 20% pass-through deduction remains in place, benefiting millions of small business owners and professionals organized as sole proprietors, partnerships, S-corporations, or certain trusts and estates.

II. Exclusion of Tips and Overtime from Gross Income (IRC § 61(a))

One of the most transformative provisions is found in Section 102 of the bill, which excludes tips and overtime pay from gross income for eligible taxpayers, modifying the broad gross income definition in IRC § 61(a). This provision marks a historic shift aimed at reducing tax burdens on service and hourly wage workers.

A. IRC § 61(a) Background

Under current tax law, IRC § 61(a) defines gross income as “all income from whatever source derived,” including wages, tips, and other compensation for services. Generally, tips and overtime wages are fully taxable.

B. Eligibility Criteria for the Exclusion

• Income Thresholds: The exclusion applies to taxpayers with modified adjusted gross income (MAGI) under $150,000 for single filers and under $300,000 for married joint filers. For purposes of this provision, MAGI is defined as adjusted gross income (AGI) increased by any amount excluded from gross income under section 911, 931, or 933 of the Internal Revenue Code.

• Employment Sectors: Though not explicitly limited by sector in the bill, this provision principally benefits service industry employees, such as those in hospitality, restaurants, retail, and other tip-earning roles.

• Reporting Requirements: Taxpayers must still report their tips and overtime pay accurately through payroll documentation, consistent with IRS Form W-2 reporting.

• Effective Dates: This exclusion applies for tax years 2025 through 2028, after which standard taxation rules will resume unless further extended by Congress.

C. Implications

This tax relief offers a meaningful increase in take-home pay for millions, helping lower- and middle-income earners without disrupting payroll withholding or Social Security and Medicare tax obligations.

III. Senior Tax Relief: $6,000 Deduction for Age 65+ (Section 103)

The OBBB introduces a new $6,000 deduction targeted at taxpayers aged 65 or older, effective 2025 through 2028. This deduction is codified as an amendment to IRC § 63, which governs itemized and standard deductions.

• Income Thresholds: Applies to taxpayers with MAGI below $75,000 for single filers and $150,000 for married joint filers.

• Purpose: Provides additional tax relief to seniors, many of whom live on fixed incomes and face escalating healthcare and living expenses.

• Temporary Nature: The deduction is scheduled to sunset after 2028 unless Congress acts to extend it.

This deduction supplements existing age-related tax credits and deductions, such as the additional standard deduction amount for seniors under IRC § 63(c)(1)(B).

IV. State and Local Tax (SALT) Deduction Cap Revisions (Section 104)

The SALT deduction cap remains a hot-button issue under IRC § 164(b)(6). The TCJA had limited the SALT deduction to a maximum of $10,000 annually.

A. OBBB Changes

• Raises the SALT deduction cap to $40,000 for taxpayers with incomes below $500,000.

• Caps the increase to 1% annual growth from 2025 to 2029, after which the cap reverts to $10,000.

• Phases out the SALT deduction for taxpayers earning over $500,000, increasing the threshold by 1% annually.

B. Rationale and Impact

This expanded cap primarily benefits taxpayers in high-tax states (California, New York, New Jersey), alleviating some tax burdens but raising concerns about federal revenue impacts.

V. Child Tax Credit (CTC) Enhancements (Section 105)

The Child Tax Credit, under IRC § 24, receives permanent enhancements:

• Credit Amount: Increased to $2,200 per qualifying child, indexed annually for inflation.

• Eligibility: Requires valid Social Security Numbers for both the child and the taxpayer claiming the credit to strengthen anti-fraud measures.

• Income Phaseouts: Maintains higher thresholds to retain benefits for middle-income families.

• Duration: This structure is permanent, ensuring long-term support for families.

VI. Medicaid and SNAP Reforms (Section 106)

Reflecting a policy shift, the OBBB imposes:

• Work Requirements: Medicaid recipients aged 19 to 64 with dependent children over 14 must work or engage in qualifying activities for at least 80 hours per month.

• Funding Reductions: Cuts funding for Medicaid and SNAP programs, with estimates projecting over 10 million Americans could lose health insurance by 2034.

VII. Defense and Immigration Enforcement Funding (Section 107)

The bill appropriates:

• $150 Billion for Defense Modernization: Including funding for the new “Golden Dome” missile defense system.

• $170 Billion for Immigration Enforcement: $45 billion specifically allocated to Immigration and Customs Enforcement (ICE) for detention and related operations.

VIII. Environmental and Energy Policy Rollbacks (Section 108)

The OBBB rolls back several clean energy tax credits and incentives, reversing earlier federal support under IRC §§ 45, 48, and related provisions.

• A new tax is imposed on university endowments exceeding certain thresholds.

• These policy changes may affect renewable energy investments and academic funding structures.

IX. Fiscal Considerations (Section 109)

The bill increases the federal debt ceiling by $5 trillion to accommodate expanded spending.

• The Congressional Budget Office estimates the OBBB will add approximately $2.8 trillion to the national debt over the next decade.

Source: H.R.1 - One Big Beautiful Bill Act

Mid-Year Tax Planning Guide 2025: Why Planning Beats Panic

As we approach the second half of 2025, the importance of tax planning for small to middle-class families has never been clearer. Recent legislative changes, inflation adjustments, and IRS enforcement trends underscore the value of early, strategic action. At JCox CPAs & Advisors, P.C., we believe proactive tax planning should be the norm, not the exception.

Why Be Proactive With Tax Planning?

Many taxpayers are familiar with tax preparation: the annual ritual of entering figures into software or handing paperwork to a preparer, then hoping for a refund or bracing for a bill. This process, while necessary, is reactive.

Tax planning is different. It's forward-looking. Rather than waiting until the end of the year, tax planning involves consistently evaluating your income, deductions, and credits throughout the year to ensure you're making smart decisions along the way. Whether you explore strategies on your own or work with a qualified tax advisor, planning in advance reduces surprises, identifies savings, and improves overall financial health.

Exclusive Offer: Tax Return Review + Free Mid-Year Planning

Did you file your 2024 tax return yourself or through another provider? JCox CPAs & Advisors is offering:

• A detailed review of your 2024 tax return

• A 40% discount on any necessary amended return

• A complimentary mid-year 2025 tax planning session

We’ll help determine whether adjustments are needed and build a custom plan for the rest of the year, so you’re not caught off guard come filing season.

Key Legislative Changes and Relevant IRC Sections

1. Standard Deduction Increase – IRC §63(c)

The standard deduction for 2025 has increased to $30,000 for married couples filing jointly and $15,000 for single filers. This simplifies filing and reduces taxable income for many families, potentially eliminating the need to itemize deductions.

2. Updated Child Tax Credit – IRC §24

The Child Tax Credit has increased to $2,500 per qualifying child. However, income thresholds have been updated, and eligibility is now subject to tighter rules. A mid-year review helps determine whether you're maximizing your credit opportunities.

3. Raised SALT Deduction Cap – IRC §164(b)(6)

Taxpayers with adjusted gross income under $500,000 can now deduct up to $40,000 in state and local taxes. This may revive itemized deductions for those in high-tax states, especially when paired with mortgage interest or charitable contributions.

4. Tip and Overtime Income Relief – IRC §62(a)

New legislation now allows deductions for reported tip income and qualified overtime under above-the-line adjustments. This change benefits hourly and service industry workers who often face higher effective tax rates on variable income.

5. Estimated Payments and Withholding – IRC §6654 and §3402

Now is the time to review your W-4 or calculate estimated taxes to avoid underpayment penalties. Mid-year is ideal for making course corrections based on expected year-end income.

6. Retirement Planning Opportunities – IRC §219 and §414(v)

Contributions to IRAs and 401(k)s can reduce taxable income while securing your future. Catch-up contributions for taxpayers aged 50+ allow additional savings. Planning ahead helps ensure contribution deadlines aren't missed.

7. Business Owners: Optimize Now – IRC §179 and §199A

Self-employed individuals and pass-through entities should evaluate:

• Equipment purchases for IRC §179 deductions

• Compensation and qualified income for the 20% QBI deduction under IRC §199A

These choices can significantly reduce your overall tax bill, but require proper planning before year-end.

8. Estate and Gift Strategies – IRC §2503 and §2010

Annual gift exclusions remain at $18,000 per recipient. The elevated lifetime exemption under IRC §2010 remains available through 2025, but is set to sunset. Planning now ensures your wealth transfer strategy is optimized before potential changes take effect.

Final Thoughts: Plan With Purpose by Connecting With Us Today

Tax planning is not just about minimizing taxes—it’s about building financial resilience. The sooner you identify opportunities, the more leverage you have to act. Let’s make 2025 the year you lead your finances, not follow your filing.

Connect with JCox CPAs & Advisors today to get started with your custom mid-year strategy.

Schedule your meeting here

Office Closure April 16–25, 2025

Valued Clients,

We are grateful for your continued trust and partnership throughout another successful tax season. To provide our dedicated staff and contractors with a much-needed rest following the busy season, please be advised that our office will be closed from Wednesday, April 16, 2025, through Friday, April 28, 2025.

We will reopen and resume normal operations on Monday, April 28, 2025. During this period, responses to emails and messages may be delayed until we return.

Thank you for your understanding and continued support. We look forward to serving you refreshed and energized upon our return.

Get Prepared for Tax Filing 2024!

Here are some essential steps to help you get prepared:

1. Gather Your Documents:

• W-2s, 1099s, or other income statements

• Business expense records if you're self-employed

• Mortgage interest statements

• Proof of charitable donations

• Health insurance documentation

2. Review Last Year's Return:

• Look over your prior year’s tax return to ensure you don't miss any carryovers (e.g., deductions or credits) and to identify any possible changes.

3. Plan for Deductions & Credits:

• Don't forget about possible deductions for things like student loans, retirement contributions, or education expenses.

• Consider tax credits like the Child Tax Credit or Earned Income Tax Credit.

4. Track Any Life Changes:

• Changes like getting married, having a baby, or buying a home could affect your tax situation. Make sure you account for these.

5. Set Up Your Tax Payment Plan:

• Estimate if you will owe taxes and start setting aside money now, or adjust your withholdings to avoid surprises.

6. Consider Professional Help:

• Tax laws are always changing, and getting professional advice ensures you don’t miss out on any savings or deductions you may qualify for.

Don't wait until the last minute! Plan ahead to ensure a smooth and stress-free tax season. If you need help getting started, reach out to us at JCox CPAs & Advisors! We’re here to make your tax filing easy and efficient.

JCox CPAs & Advisors, P.C. Announces Exciting Partnership with ADP

We at JCox CPAs & Advisors, P.C. are thrilled to announce our strategic partnership with ADP, a leader in innovative HR and payroll solutions. This collaboration allows us to bring even greater value to our clients, from solo entrepreneurs to enterprise-level organizations. Whether you’re growing your startup or managing a complex enterprise, ADP provides solutions to tackle your most pressing HR and payroll challenges.

Why ADP? A Trusted Resource for HR and Payroll Excellence

ADP’s comprehensive solutions are designed to simplify and streamline HR processes for businesses of all sizes. Their approach enables organizations to access tools and support that meet today’s needs while paving the way for future success. Here are just a few ways ADP empowers businesses:

1. All-in-One Solutions

ADP’s all-in-one HR platforms provide one-stop shopping for essential tools and support. From advanced technology to unparalleled human expertise, these solutions grow with your business, giving you the flexibility to thrive both today and tomorrow.

2. Customized Solution Packages

No two businesses are alike. ADP offers individualized solutions with transparent pricing, ensuring you pay only for the tools and services you need. These packages eliminate the guesswork from budgets and deliver clarity around costs, helping businesses stay on top of moving-target bottom lines.

3. Professional Employer Organization (PEO) Support

For businesses looking to focus on what matters most, ADP’s PEO service is a game-changer. With an all-in-one HR solution, ADP takes on complicated, time-consuming HR tasks such as payroll, employee benefits, compliance, and risk management. This frees up valuable time and resources so leaders can focus on growth and innovation.

Enhancing Value for Our Clients

As trusted advisors, we know that managing HR and payroll can be overwhelming—particularly as businesses scale and face increasingly complex challenges. By partnering with ADP, JCox CPAs & Advisors, P.C. can now provide our clients access to tools and resources designed to improve efficiency, reduce compliance risk, and simplify workflows.

Whether you need help navigating HR technology, managing payroll, or implementing full-scale workforce solutions, ADP’s trusted tools ensure your business is set up for success.

Let’s Grow Together

This partnership is another step in our commitment to deliver solutions that matter. At JCox CPAs & Advisors, P.C., we’re excited to empower our clients with streamlined HR and payroll services through ADP. We believe this collaboration will enable you to work smarter and achieve greater peace of mind—no matter your business’s size or complexity.

To learn more about how our partnership with ADP can help your business thrive, contact us today!

JCox CPAs & Advisors, P.C. is Now a QuickBooks Affiliate!

Get QuickBooks today and get 30% off for 6 Months.

Today we are excited to share that we have a new opportunity to offer QuickBooks Online, a tool that helps you run your finances! We know as a small business, you are always in need of support when it comes to running your book in an easy, efficient, and smart way. That’s why we’re offering QuickBooks Online to help solve this gap for you and your business.

By using QuickBooks Online, you will save time and money! It is a simple, automated, and organized platform that stores all your accounting information in one place. QuickBooks Online also helps with managing your invoices and expenses by using custom reminders and tracking features throughout its lifetime.

We are excited to be able to offer you a discount on QuickBooks Online: Get QuickBooks today!

We’re excited to have you take advantage of this amazing product and we can’t wait to hear how QuickBooks Online has helped you!

A Comprehensive Guide for Sole Proprietors on Paying Quarterly Estimated Taxes

Understanding Sole Proprietorship

A sole proprietorship is the simplest and most common form of business structure. It is owned and operated by a single individual, meaning there is no legal distinction between the owner and the business. This structure offers full control to the owner and allows for simple tax reporting. However, it also means that the owner is personally liable for all debts and obligations of the business.

As a sole proprietor, you report your business income and expenses on your personal tax return, specifically using Schedule C (Form 1040). This form allows you to detail your profits and losses from your business activities.

Why Pay Estimated Taxes?

The IRS requires taxpayers, including sole proprietors, to pay estimated taxes if they expect to owe $1,000 or more in tax for the year. This is essential because sole proprietors typically do not have taxes withheld from their business income, unlike employees who have taxes withheld from their paychecks.

Steps for Paying Quarterly Estimated Taxes

1. Determine Your Tax Liability: Calculate your expected adjusted gross income (AGI), taxable income, taxes, credits, and other payments for the year.

2. Use IRS Form 1040-ES: Form 1040-ES is used for estimating your tax payments. It includes a worksheet to help you estimate your taxable income and tax liability.

3. Calculate Quarterly Payments: Divide your estimated tax liability by four to determine your quarterly payment amount.

4. Know the Due Dates: Estimated tax payments for sole proprietors are typically due on the following schedule:
   - First Quarter: April 15
   - Second Quarter: June 15
   - Third Quarter: September 15
   - Fourth Quarter: January 15 of the following year

5. Make Your Payments: Payments can be made electronically through the IRS Direct Pay system, or you can send a check or money order along with the payment voucher from Form 1040-ES.

6. Keep Accurate Records: Maintain accurate records of your income and expenses throughout the year.

Relevant Tax Codes and Forms

- Federal Forms:
  - Form 1040: U.S. Individual Income Tax Return, which includes income from your sole proprietorship.
  - Schedule C (Form 1040): Profit or Loss from Business, where you report your business income and expenses.
  - Form 1040-ES: Estimated Tax for Individuals.

- Georgia State Forms:
  - Form 500: Georgia Individual Income Tax Return, used to report income, deductions, and credits for state tax purposes.
  - Form 500-ES: Georgia Estimated Tax Payment Coupon, which is used to make estimated tax payments to the state.

Caution

The examples provided (below) assume that the sole proprietor is a Georgia resident who is a single filler. Tax laws and rates can vary significantly by state, so it’s essential to consult local regulations or reach out to JCox CPAs & Advisors, P.C. if you're operating outside of Georgia.

Example Breakdown

Example Scenario

- Total Expected Income for the Year: $50,000
- Total Expected Business Expenses: $15,000
- Filing Status: Single
- Standard Deduction for the Year: $13,850 (for 2023)

Step 1: Calculate Federal Tax Liability

1. Calculate Net Income:
   Net Income = Total Income - Total Expenses
   Net Income = 50,000 - 15,000 = 35,000

2. Adjust for Standard Deduction:
   Taxable Income = Net Income - Standard Deduction
   Taxable Income = 35,000 - 13,850 = 21,150

3. Apply Federal Tax Rates:
   The 2023 federal income tax brackets for a single filer are as follows:
   - 10% on income up to $11,000
   - 12% on income over $11,000 up to $44,725

   Calculate Tax:
   - First $11,000: 11,000 × 0.10 = 1,100
   - Remaining income ($21,150 - $11,000 = $10,150): 10,150 × 0.12 = 1,218
   - Total Federal Tax Liability: 1,100 + 1,218 = 2,318

4. Calculate Quarterly Payments:
   Quarterly Federal Estimated Tax Payment = Total Tax Liability / 4
   Quarterly Federal Estimated Tax Payment = 2,318 / 4 = 579.50

Step 2: Calculate Georgia State Tax Liability

1. Apply Georgia Tax Rates:
   Georgia uses a similar tax bracket system. The 2023 tax brackets for a single filer are:
   - 0% on income up to $750
   - 1% on income from $751 to $2,250
   - 2% on income from $2,251 to $3,750
   - 3% on income from $3,751 to $5,250
   - 4% on income from $5,251 to $7,000
   - 5% on income from $7,001 to $10,000
   - 5.75% on income over $10,000

2. Calculate Georgia Tax:
   Calculate Tax:
   - First $750: 750 × 0.00 = 0
   - From $751 to $2,250: (2,250 - 750) × 0.01 = 15
   - From $2,251 to $3,750: (3,750 - 2,250) × 0.02 = 30
   - From $3,751 to $5,250: (5,250 - 3,750) × 0.03 = 45
   - From $5,251 to $7,000: (7,000 - 5,250) × 0.04 = 70
   - From $7,001 to $10,000: (10,000 - 7,000) × 0.05 = 150
   - Over $10,000: (21,150 - 10,000) × 0.0575 = 643.75

  Total Georgia State Tax Liability:
   0 + 15 + 30 + 45 + 70 + 150 + 643.75 = 953.75

3. Calculate Quarterly Payments:
   Quarterly Georgia Estimated Tax Payment = Total Tax Liability / 4
   Quarterly Georgia Estimated Tax Payment = 953.75 / 4 = 238.44

Summary of Estimated Tax Payments

- Total Federal Tax Liability: $2,318
- Quarterly Federal Estimated Tax Payment: $579.50
- Total Georgia State Tax Liability: $953.75
- Quarterly Georgia Estimated Tax Payment: $238.44

Fundamentals of Small Business Bookkeeping

Accurate financial management is essential for small business success because it facilitates compliance and allows for growth tracking. The tax experts at JCox CPAs & Advisors, P.C. have put together this concise guide with crucial bookkeeping advice for small business owners.

Keep personal and business finances apart.

Establishing a specific bank account and credit card for business use only is one of the first steps in preparing your company for financial clarity. By keeping personal and business transactions apart, this makes filing taxes easier and reduces issues in the case of an IRS audit. This division is essential for accurate financial reporting for all business entities other than sole proprietorships.

Use Automation to Simplify Accounts Payable

Managing bills and invoices can be made easier with a trustworthy tool like Bill.com. With its integration with QuickBooks, it streamlines your accounts payable and receivable procedures and provides safe payment methods such as international wire transfers, credit cards, checks, and ACH transfers. Automating these processes with digital tools reduces errors, saves time, and aids in maintaining vendor payment organization.

Make Expense Tracking Digital

Keeping track of expenses for several employees can be challenging, particularly when dealing with physical receipts that are prone to being misplaced or destroyed. You can assign specific funds to team members and maintain digital records with an expense tracking tool like Divvy. Workers can upload receipt photos straight into the app, which simplifies record-keeping and improves budgetary control.

Use Financial Information to Make Strategic Choices

Your financial records are vital tools for strategic planning, not just for tax purposes. Making informed business decisions can be facilitated by routinely examining your profit and loss statements and comprehending important financial ratios, such as debt-to-equity and return on assets. Monthly or yearly analysis of these records can help identify areas for growth and cost reduction.

Get Ready for 1099 Forms in Advance

You must provide a 1099 form for independent contractors who are paid more than $600 in a single year if you work with them. Requesting a W-9 form from each contractor at the start of your working relationship will streamline this process. The last-minute rush during tax season is avoided and 1099 preparation is made simpler when their tax information is on file.