Stahlberg, Manuel & Associates, P.C. was formed in 1999 in Kalispell, MT and continues to be a recognized leader in the accounting industry. Stahlberg, Manuel & Associates is known for high quality professional services and integrity. It has expanded since 1999 to include additional CPAs and professional staff.

   The firm is large enough to provide a wide variety of services, but small enough to provide personalized attention to the needs of each client. Thank you for you interest in Stahlberg, Manuel & Associates, please don’t hesitate to contact us with questions you have about the accounting, tax preparation, payroll, and business consulting services we offer.

Sincerely,
Steve Stahlberg, Jessica Manuel, and the team

The One Big Beautiful Bill Act (BBB) was signed into law by President Trump on July 4, 2025. Because guidance is still forthcoming, before you take any substantive tax actions, please call us to confirm that it makes tax-sense for you.

Individual Changes

• The tax brackets and rates set by the Tax Cuts Jobs Act (TCJA) of 2017 set to expire 12/31/2025 were made permanent.
• The standard deduction doubled by the TCJA was also made permanent.
  • Increased for 2025: $15,750 Single/Married Filing Separate (MFS), $23,625 Head of Household, $31,500 Married Filing Joint (MFJ)/Qualified Surviving Spouse
  • Adds additional senior amount of $6,000 for individuals over 65 with limitations based on income. The deduction can be taken whether not the taxpayer is itemizing. The income limits begin to phase out when income is over $75,000 Single or $150,000 MFJ and is completely phased out when income reaches $175,000 Single or $250,000 MFJ. This was in lieu of making Social Security Benefits nontaxable and lasts only 4 years, expiring after 2028.
• Personal exemptions have been permanently repealed
• Auto Loan Interest deduction has been added for NEW vehicles that are not used for business up to $10,000 annually for any loans that were incurred after 12/31/2024 and will expire after the 2028 tax year
• Charitable Contribution deduction Pre-AGI for taxpayers who are not itemizing, starting with the 2026 tax return.
• Tip Pay Deduction
  • This is a Pre-AGI deduction for all taxpayers through the 2028 tax year
  • $25,000 annual limit
  • The deduction phases out when AGI is over $150,000 Single and $300,000 MFJ
  • The tips must be reported on W-2 or Form 4137 (form to report unreported tips and apply the Social Security and Medicare taxes)
  • Must be from ordinarily tipped jobs, such as food workers, waiters, hair stylists, valets, etc.
  • For a specified service business, this deduction will not apply
• Overtime Pay Deduction
  • Pre-AGI deduction for all taxpayers through the 2028 tax year
  • $12,500 Single annual limit and $25,000 MFJ annual limit
  • Phases out after AGI of $150,000 Single and $300,000 MFJ
  • Must be for wages that normally require overtime and can be taken in addition to the tip deduction
  • Will need to be reported on Form W-2 in Box 19
• Child Tax Credit has been increased from $2,000 to $2,200
• Child Care Assistance and Dependent Care Credit
  • Section 129 Employer dependent care assistance is now increased to an annual limit of $7,500 beginning in 2026
  • The Dependent Care Credit reported on a 1040 has now increased to 50%, but will still phase down to 20% when AGI is over $75,000 Single and $150,000 MFJ
• Section 127 Student Loan Education assistance plan payments has been permanently made a qualified non-taxable fringe benefit
• HSA Plans
  • Adds qualified expenses such as on-site employee clinics
  • Updated contribution limits for 2025 in Rev. Proc. 2025-19
  • Now bronze and catastrophic plans qualify as HDHP (High Deductible Health Plan)
• The Deduction Reduction limitation for high income replaced old standards
  • Reduction of itemized deductions phases in starting at $639,275 of AGI
• Home Mortgage interest deduction that was limited to $750,000 of qualified indebtedness by the TCJA has been made permanent
• Home Equity interest where the proceeds were used for other purposes than buying, building, or improving the home securing the mortgage have been made permanently non-deductible
• Mortgage Insurance Premium payments will be considered qualified mortgage interest beginning in 2026
• Casualty Losses
  • The TCJA made personal casualty losses nondeductible for 2019-2025 and BBB made it permanent
    • Business Casualty losses are still deductible
  • There is an exception for Federal or State declared disaster areas
    • www.FEMA.gov/disaster 
      • this link will provide details on qualifying disaster areas
    • Must be formally declared by the President under the Stafford Act
    • Disaster(s) must have been declared between 1/1/2020 and 7/4/2025
• Itemized Deduction Changes
  • 2% miscellaneous itemized deductions have been permanently removed
  • Teachers and coaches allowed educator expenses starting in 2026
  • Moving deduction, except for military, has been permanently repealed
  • State and Local Taxes Deduction (SALT) limit has been increased to $40,000 as of 2025, but phases back down to $10,000 when AGI hits $500,000
  • Gambling losses limited to 90% of loss amount, beginning in 2026, and the overall limit that states only losses up to the amount of gains can be deducted still applies
  • 529 ABLE account limits increased
  • Tax-Free debt discharge of tax-free student loans due to death or disability has been made permanent
• Adoption Credit becomes partly refundable in 2025
• Trump Savings Account for all US citizen kids born after 12/31/2024 and before 1/1/2029 will receive a new account that is funded with an initial $1,000 government deposit
• Energy Credits
  • 30% solar, wind, battery, energy efficient homes ends on 12/31/2025
  • EV Credits ends 9/30/2025
  • EV Charger credit ends 6/30/26
  • Many business solar credits will end in 2026
• 529 Qualified expenses include homeschooling, credentialing, and allows ABLE rollovers

Business Changes

• Bonus Depreciation Reinstated to 100% for property placed in service after 1/19/2025 and before 1/1/2030.
• Qualified Production Property Expensing allowed for property placed in service after 1/19/2025 and before 1/1/2030
• Section 179 increased to $2.5 Million, but begins to phase out with income over $4,000,000 for years after 12/31/2024
• Research Expenses are deductible for years after 12/31/2024 for qualified small businesses with less than $31 Million average sales and is retroactive
• Business interest expense deduction limit increases after 12/31/2025
• Child care facility credit increased to 40/50% qualified expenses after 12/31/2025
• 1099-NEC and 1099-MISC reporting threshold amounts increase to $2,000 for tax years 2025 and 2026 and will be adjusted for inflation going forward
• 1099-K reporting thresholds are increased to $20,000 and 200 transactions for 2025 (reporting in 2026)
• C Corporations charity deductions have a new 1% taxable income floor
• Ozone and New Markets credits are permanent
• Section 1202 exclusion increased
• QBI income threshold increased for specified service businesses in 2026, rate is staying at 20% and is now permanent
• 4 years to pay tax on qualified sale of farmland
• New 31.8% tax on financed litigation proceeds
• Social security numbers required for all education credits