With the tax season approaching in the United States, there have been adjustments to tax regulations once again. Los Angeles-based professional accountant Ye Junlin recently reminded that this year, there are new details and terms applicable to certain income categories and specific expenditure items. Failure to fully understand the latest regulations may affect deduction rights and even increase the risk of underreporting.
Ye Junlin pointed out that individuals in the service industry, salaried employees receiving overtime pay, as well as taxpayers who meet age requirements or have recently purchased a car, should review their personal financial information and tax documents, paying special attention to four key policies.
Regarding restaurant and accommodation operators, Ye Junlin stated that the declaration method for tip income and whether it meets specific tax-exempt or deductible conditions should be determined based on the actual situation.
He advised taxpayers to keep Form 8027 provided by their employers and complete personal income and expense records for verifying the reported figures. If tip amounts are already included in taxable wages on the W-2 form, they generally remain within the taxable range. Whether they qualify for exception clauses should be further assessed by professionals.
Some overtime wages meeting certain conditions may have tax reduction or offsetting opportunities this year. However, Ye Junlin emphasized that overtime income is not automatically tax-exempt, as there are often income limits and specific conditions that apply.
He recommended that taxpayers check whether Regular Pay and Overtime are clearly distinguished on the W-2 form to avoid miscalculations due to unclear classifications.
To ease the tax burden on the elderly, those who meet the criteria can enjoy additional standard deduction amounts. According to current regulations, individuals aged 65 and over with income below a certain threshold can increase their deductions by an extra $6,000; for married couples filing jointly, the maximum can reach $12,000.
Ye Junlin cautioned that eligibility depends on the “Adjusted Gross Income” (AGI) and suggested preliminary calculations to avoid underestimating deductions due to slightly higher income than the threshold.
For those who purchased American-made vehicles and financed them through loans, there may be deduction opportunities for related interest expenses this year. However, the applicable conditions involve the determination of the vehicle’s origin, income limits, and whether it falls under the Itemized Deduction category.
Ye Junlin advised taxpayers to retain complete vehicle purchase and loan documents, and ensure that the vehicle meets the official definition of “American-made” to avoid misreporting deduction items.
Finally, he stressed that tax regulations are adjusted annually, and even slight differences in details can impact deduction amounts. Taxpayers should organize their income and expenditure proofs early, cross-check official IRS forms and schedules, and seek professional assistance when necessary to ensure the maximization of their rights under legal compliance.