This week’s Tax Advisor news roundup covers key updates for financial professionals. We break down individual state income tax rates and brackets nationwide, explore a survey revealing that technology spending in the financial services sector is outpacing pay increases, and provide a refresher on 1099-K reporting requirements. Plus, we highlight the risks of oversharing personal information online in relation to your practice. To wrap up, we take a forward-looking look at potential extensions of Tax Cuts and Jobs Act (TCJA) provisions and ongoing discussions around the state and local tax deduction cap.
Industry News
State Individual Income Tax Rates and Brackets, 2025
(Andrey Yushkov and Katherine Loughead, Tax Foundation)
Individual income taxes are a major source of state government revenue, accounting for 33 percent of state tax collections in fiscal year 2023, the latest year for which data are available. Their significance in public policy is further enhanced by individuals being actively responsible for filing their income taxes, in contrast to the indirect payment of sales and excise taxes. Forty-two states levy individual income taxes. Forty-one tax wage and salary income. Washington only taxes capital gains income. Eight states, including New Hampshire, which repealed its interest and dividends tax in 2025, levy no individual income tax at all.
The Cost of Doing Business: Pay Increases May Be Muted in 2025
(Bryan Strickland, Journal of Accountancy)
Boosting spending on technology remained ahead of pay increases for the second consecutive year in Gartner’s annual survey of Chief Financial Officers (CFOs) and finance leaders. And while pay increases did maintain second place in terms of planned budget boosts for 2025, the volume of those increases is forecast to tumble. Sixty-one percent of 300 leaders surveyed in October indicated they planned to boost pay by at least 4% in 2025, down from the 71% who planned on the same in 2024 and down from 86% in 2023.
1099-K Tax Rules: What You Need to Know if You Get Paid Via Venmo, Cash App, or PayPal
(Kemberley Washington, CPA, CPA Practice Advisor)
If you sell goods or services or rent property, and get paid through Venmo, PayPal, Cash App or another payment app, you may have been surprised by a Form 1099-K this year. Here’s why you might be among the millions of taxpayers who got this form for the first time: If you received a total of $5,000 or more through a payment app in 2024, that company is now required to report that amount to you—and to the Internal Revenue Service (IRS). The standard before 2024 was that a 1099-K had to be issued only if you received $20,000 or more and had more than 200 transactions. Now the threshold dollar amount is much lower, and there’s no minimum transaction requirement.
(Jason Blumer, Thriveal)
Treat your intimate information with respect and respect the people who consume it. We all need the intimate context of who you are, your life, your past, your struggles and hopes, and your ups and downs to be able to view your transparent information in the proper light that allows us to show you the proper care in return. Not everyone who is online is part of your community, and a profile (especially a hidden profile, which is just another example that not all people online are part of a community) feels no restrictions to say whatever they want to you.
Tax Pros Brace for 2026: Trump, TCJA Extensions and Crypto
(Frank Gargano, Accounting Today)
The IRS ended 2024 by debuting regulations on reporting cryptocurrency transactions, amendments for outdated provisions, updates for standard mileage rates and more. As President-elect Donald Trump gets ready for his second term in office, professionals are looking ahead to what the 2026 tax landscape will look like. Trump was vocal throughout his campaign about working to extend many of the provisions of his landmark Tax Cuts and Jobs Act of 2017 that are set to expire at the end of this year. Recently, he rallied roughly 20 like-minded Republican House members from New York, New Jersey, and California to discuss updates to state and local tax deduction caps.
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