On this episode, we dive into the new senior exemption. Unlike overtime, tips and vehicle loan interest, this deduction from the Big Beautiful Bill hasn't gotten a lot of coverage. We break it down on this episode.

Then, we look at some items relating to the overtime deduction, including the definition of qualifying overtime, and the oddity around how the phaseout on the deduction works.

The new deduction for qualified tips isn't just for W-2 employees. Self-employed individuals can qualify, too. But there's a catch: The reporting requirements may make the deduction unavailable to many sole proprietors who receive tips.

In this episode of Accounting in the Wild, Jason Dinesen explores the surprising intersection of the Schedule 1-A tips deduction and Form 1099-K reporting.

Using practical examples involving a barber, a hairdresser and a landscaper, Jason explains:

• Why Form 1099-K plays such an important role in the tips deduction.
• The difference between payment settlement entities and third-party settlement organizations.
• Why receiving tips doesn't necessarily mean a self-employed person can deduct them.
• How the Form 1099-K reporting thresholds can prevent taxpayers from receiving the documentation they need.
• Why common workarounds, such as point-of-sale records, bookkeeping records and Schedule C reporting, may not solve the problem.
• Why W-2 employees generally don't face these same Form 1099-K complications.

It's another example of how tax law can look straightforward on the surface but become much more complicated when applied to real-world situations.

Accounting in the Wild: By a small practitioner, for small practitioners.

The new deduction for qualifying vehicle loan interest sounds straightforward enough — until the taxpayer is self-employed and uses the vehicle for business.

In this episode of Accounting in the Wild, Jason Dinesen takes a practical look at how the new vehicle loan interest deduction works when a vehicle has both personal and business use.

A key issue is whether the vehicle qualifies as a personal-use vehicle in the first place. Under the final regulations, that determination is based on the taxpayer’s intended use at the time the vehicle is purchased. If the taxpayer intends to use the vehicle more than 50% for personal purposes, it can qualify even if the actual business-use percentage later turns out to be higher.

From there, self-employed taxpayers have some flexibility. Jason walks through the regulations’ examples showing how qualifying interest can potentially be deducted entirely on Schedule 1A or allocated between Schedule 1A and Schedule C based on actual business use.

The episode also explores an important wrinkle: the $10,000 limitation applies to the Schedule 1A deduction, not to the portion properly deducted on Schedule C. That can make allocation particularly important when the taxpayer has substantial vehicle-loan interest.

Topics include:

• What makes a vehicle a qualifying personal-use vehicle
• Why the taxpayer’s intent at the time of purchase matters
• What happens when actual business use differs from expected use
• Allocating interest between Schedule 1A and Schedule C
• How the $10,000 limitation interacts with business-use interest
• Practical examples from the final regulations

For tax professionals working with sole proprietors and other self-employed taxpayers, this episode breaks down an easily overlooked intersection between a new individual deduction and familiar business vehicle rules.

Accounting in the Wild is back — with a renewed focus: by a small practitioner, for small practitioners.

Artificial intelligence is rapidly finding its way into tax practices, sometimes in obvious places like ChatGPT or Claude — and sometimes embedded in software we may not even realize is using AI.

The IRS recently weighed in with its initial thoughts on what tax professionals need to consider when using AI. In this episode, Jason Dinesen looks at that guidance through the eyes of the small practitioner.

We’ll talk about AI hallucinations and the importance of human review, the due-diligence and competency requirements of Circular 230, and why practitioners need procedures governing how AI is used in their firms.

We’ll also get into one of the biggest issues for tax professionals: client data. If client information is being provided to an AI tool, Sections 6713 and 7216 can come into play — meaning AI isn’t simply a technology issue. It can become a disclosure, consent, and potentially penalty issue.

And then there’s the question that caused plenty of debate among tax professionals: If AI makes us more efficient, what does that mean for what we charge clients?

Along the way, Jason makes the case for thinking of AI as something like junior staff: potentially very knowledgeable and capable of doing a lot of the heavy lifting, but still requiring an experienced practitioner to review the work, recognize when something doesn’t look right, and supply the nuance the machine may be missing.

Finally, we bring everything back to practical steps a small firm can take right now:

• Identify the AI tools you know you’re using — and the ones that may be embedded in other software.
• Determine whether client information is being shared with those tools.
• Review your client disclosures and consent procedures where necessary.
• Start documenting your firm’s AI policies and procedures.
• If you bill by the hour, consider how AI-assisted work affects your billing practices.

AI doesn’t have to be something small practitioners fear or ignore. But using it responsibly requires understanding what the tools are doing — and remembering that the practitioner is still ultimately responsible for the work.

Accounting in the Wild: by a small practitioner, for small practitioners.

New episodes of Accounting in the Wild ... coming soon!

In this episode, Jason Dinesen breaks down three big updates affecting accountants, tax preparers, and small business owners in Fall 2025:

🔹 1. Draft W-9 Changes

The IRS has released a draft of Form W-9 that could significantly change how sole proprietors and single-member LLCs report their Taxpayer Identification Numbers. Jason explains:

What’s in the draft (and what’s not official yet)

Why sole proprietors might soon be required to use their Social Security Number

How to keep tabs on the official IRS W-9 page for updates

🔹 2. 1099-K Thresholds and the “Big Beautiful Bill”

The so-called “Big Beautiful Bill” rolled back the $600 threshold for third-party payment reporting. Jason discusses:

Why the $20,000 / 200-transaction rule is back

How this impacts gig workers, small sellers, and payment apps like Venmo and PayPal

Whether the IRS really gained anything from the lower threshold

🔹 3. The Tax Benefit Rule Returns

With the new $40,000 SALT cap and permanent standard deduction increases, more taxpayers may again face taxable state refunds. Jason explains what the tax benefit rule is, how it works, and why it’s suddenly relevant again.

🎧 Listen and Learn
🎓 Earn CPE Credit:
You can earn continuing education credit for watching or listening through My-CPE.com (remember the hyphen!).

Jason’s back with a grab bag of timely tax and accounting updates pulled straight from his teaching sessions and client questions.

In this episode of Accounting in the Wild, you’ll hear about:

• Big Beautiful Bill (BBB) — the brand-new overtime pay deduction, how “qualifying overtime” is defined under the Fair Labor Standards Act, and why W-2s aren’t changing in 2025 (but employers still have new reporting duties).
• Trump Accounts — what they are, how they work, and the unanswered questions around the $2,500 employer contribution rule.
• Electronic filing of 1099s — the difference between the IRS FIRE and IRIS systems, plus when using a third-party provider might make sense.
• 1099-K reporting threshold — BBB restores the 200 transactions / $20,000 limit.
• Contractor vs. employee — why the Department of Labor’s interpretation just shifted back to a pre-Biden stance.

Whether you’re a tax pro, CPA, EA, or just curious about the latest changes, this episode is packed with real-world explanations you can put to use immediately.

🎓 Earn CPE credit for listening to this program through our sponsor My CPE One: https://my-cpe.com (make sure to include the hyphen — my-cpe.com).

It’s summertime... but there’s still tax planning to do.

In this solo episode of Accounting in the Wild, Jason Dinesen breaks down what tax professionals (and taxpayers!) need to know right now — before key deadlines and credits disappear.

In this episode:

• ⚡ Energy credits are going away — EV, solar, appliances, and more
• ✉️ IRS will no longer accept paper checks after September 30
• 🏕️ Day camps and the daycare credit: what counts?
• 💸 Overtime and tip deductions — where do they go on the return?
• 🚗 Also the new deduction for certain car loan interest deduction -- where does it go?
• 🧾 Written Information Security Plans (WISPs) — are you in compliance?
• 🧓 Did Congress eliminate tax on Social Security? Nope — here's what they actually did

Timestamps:
00:00 – Welcome
00:27 – Expiring energy credits (EV, solar, windows)
04:34 – Section 179D update for commercial projects
06:48 – IRS ends paper checks (big change alert!)
10:35 – Day camps and the child care credit
12:49 – Daycare credit changes under BBB (starting 2026)
14:32 – Dependent care FSAs increase to $7,500
16:49 – Tip/overtime deduction ≠ AGI deduction
18:53 – Car loan interest deduction: the rules
20:48 – Written data security plans (WISP)
22:37 – Social Security taxation myths
24:47 – Final thoughts

CPE Credit Available:
Want continuing ed credit for this episode? Listen on MyCPE.com — search “Accounting in the Wild” to get started.

Hosted by: Jason Dinesen, EA
Founder of Dinesen Media Ventures | Tax Pro | Educator | Storyteller

Brought to you by: MyCPE.com — offering 15,000+ hours of online CPE & CE for CPAs, EAs, and tax pros.

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