1099 Facts

Running a business is hard enough — between serving customers, managing staff, and juggling invoices, your taxes can feel like an afterthought. But beware, small business owner: the IRS has seen it all, and a few “little” mistakes can cost you big.

The treatment of tip income is changing in 2025, thanks to the new “No Tax on Tips” provision introduced under the One Big Beautiful Bill Act (OBBBA). While tips remain taxable in several respects, eligible workers may now claim a federal income tax deduction of up to $25,000 annually for “qualified tips.”

Let’s face it — QuickBooks is amazing. It’s like the Swiss Army knife of bookkeeping. It tracks your income, pays your bills, and even sends friendly reminders that you forgot to reconcile your bank account… again. But while QuickBooks can do a lot, it can’t do everything — especially the things that can make or save you money. And that’s where your accountant (hi, that’s us) comes in.

Vehicle expenses can be a valuable tax deduction, but only when mileage is properly classified and documented. For tax purposes, the deductibility of mileage depends on whether the travel is considered business, commuting, or personal. Understanding these distinctions is essential to support allowable business mileage deductions.

Shannon is pleased to join the Senter team as a Staff Accountant.

Accurate documentation is essential when claiming charitable contributions on your tax return. The IRS requires specific records depending on the type and value of your donations. Maintaining proper records ensures your contributions are deductible and helps you avoid issues if your return is ever reviewed.

Paying federal and Michigan income taxes is pretty straightforward and are now required to be paid online.

At Senter, CPA, our goal is to make your tax preparation experience as seamless and efficient as possible.

Qualified Charitable Distributions (QCDs) are a tax-efficient way for eligible IRA owners to support charitable organizations while managing taxable income. Individuals who are age 70½ or older may donate up to $108,000 in 2025 directly from a traditional IRA to a qualified charity. When structured properly, a QCD is excluded from taxable income, may satisfy Required Minimum Distribution (RMD) requirements, and can help reduce overall tax liability.

Getting your tax documents organized for your preparer can feel overwhelming—but you don’t have to do it alone. One of the most common questions we hear is, “What documents do I need for my individual tax return?”