One Big Beautiful Bill: What Bookkeepers Need to Know

Описание: On July 4th, 2025, President Trump signed the One Big Beautiful Bill Act into law, bringing major changes that affect how you handle payroll, tips, overtime, and 1099 reporting. Some of these changes will actually make your life easier, while others require adjustments to your processes.

The bill (HR 1) is an 870-page piece of legislation passed 51-50 in the Senate with VP JD Vance's tie-breaking vote, then 218-214 in the House. It makes 2017 Trump tax cuts permanent and includes changes that directly impact bookkeepers.

🔥 THE 3 MAJOR CHANGES FOR BOOKKEEPERS:
✅ No Tax on Tips provision (actually a deduction, not elimination)
✅ No Tax on Overtime provision (deduction for overtime premium)
✅ 1099 Reporting threshold increases (HUGE administrative relief)

💡 NO TAX ON TIPS - WHAT IT REALLY MEANS:
✅ Workers can deduct up to $25,000 in qualified tips per year (2025-2028)
✅ Phases out at $150K AGI (singles) or $300K (married filing jointly)
✅ Only applies to 70+ IRS-listed tipped occupations (bartenders, servers, hairstylists, valets)
✅ NOT available for specified service businesses (lawyers, accountants, consultants)
✅ Must track tips separately and report on W-2 Box 12 with new code TP (starting 2026)
✅ Social Security, Medicare, and state taxes STILL apply

🎯 NO TAX ON OVERTIME - THE DETAILS:
✅ Deduction for overtime premium (the "half" in time-and-a-half)
✅ Only federally mandated FLSA overtime (over 40 hours/week)
✅ Max deduction: $12,500 (singles) or $25,000 (married filing jointly)
✅ Phases out at $150K/$300K AGI
✅ Report on W-2 Box 12 with new code TT (starting 2026)
✅ Tips cannot be claimed as overtime pay (no double dipping)

💰 1099 THRESHOLD CHANGES (BEST NEWS IN THE BILL):
✅ Form 1099-K: Threshold returns to $20,000 + 200 transactions (effective immediately for 2025)
✅ Forms 1099-NEC and 1099-MISC: Threshold increases from $600 to $2,000 (starting 2026)
✅ Threshold adjusts for inflation annually starting 2027
✅ Eliminates need for 1/3 of all 1099-MISC paperwork

Action items for bookkeepers: Update payroll systems to separately track tips and overtime, learn new W-2 Box 12 codes (TT, TP, TA), educate clients that this is a deduction not elimination of taxes, adjust 1099 processes for 2026, collect W-9s from all vendors regardless of amount, stay on top of IRS guidance releases.

Timeline: 2025 = transition year with transition relief (use reasonable methods to estimate), October 2025 = IRS published list of 70+ qualifying tipped occupations, 2026 = new withholding tables, new W-4 worksheets, new W-2 Box 12 codes, $2,000 1099 threshold, 2027 = inflation adjustments begin, 2028 = tip and overtime deductions expire unless Congress extends.

Critical reminders: State taxes NOT affected (tips and overtime still taxable at state level), payroll taxes NOT affected (FICA still applies to all tips and overtime), record keeping more important than ever (IRS wants documentation for audits), even if no 1099 required the income is still taxable.

This separates good bookkeepers from great ones. Getting ahead of these changes, understanding the rules, and guiding clients through them builds trust and retains clients long-term.

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