DFW, TX / BROOKLYN, NY, Feb. 04, 2026 (GLOBE NEWSWIRE) -- Equity Compensation Tax Specialist and Boutique Tax Firm Founder with 13 Years Leading Red White and Blue Tax Services in Brooklyn Guides Business Owners, Tech Employees, and Families Through One Big Beautiful Bill Act Tax Changes — Including Trump Accounts, Qualified Overtime Compensation Deduction, SALT Cap Increase, and Vehicle Loan Interest Benefits for 2026 Tax Filing Season

Red White and Blue Tax Services, a tax preparation and advisory firm specializing in small business tax planning, equity compensation tax strategy, and year-round advisory for business owners and individuals with complex tax situations, today announced the expansion of its virtual practice across the DFW metroplex and New York City metropolitan area, alongside the launch of its redesigned digital platform at rwbtax.us.

Logo for Red White & Blue Tax Services

The expansion comes as American taxpayers prepare to navigate significant changes to the Internal Revenue Code under the One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025. The legislation introduces several provisions — including the qualified overtime compensation tax deduction, Trump Accounts, an increased SALT deduction cap of $40,000, and a new vehicle loan interest deduction — that will materially affect tax planning strategies for the 2025 tax year and beyond.

"This filing season represents the most substantial shift in individual and small business tax planning since the Tax Cuts and Jobs Act of 2017," said Haziq Inayat, founder of Red White and Blue Tax Services. "Business owners, tech employees with stock compensation, and working families who understand these new provisions — from the qualified overtime compensation deduction to the SALT cap increase — can achieve meaningful tax savings. Those who don't may leave significant money on the table."

Key OBBBA Provisions Affecting 2025 Tax Returns

Trump Accounts: A New Tax-Advantaged Vehicle for Children

The OBBBA establishes Trump Accounts, a new category of individual retirement account designed specifically for minor beneficiaries. Under Internal Revenue Code provisions enacted by the legislation, parents and guardians may establish these accounts for children under age 18 by filing Form 4547 (Application for Trump Account) with their 2025 tax return. Eligible families should plan to file this form during the 2026 tax filing season, which begins with IRS processing on January 26, 2026.

Children born between January 1, 2025, and December 31, 2028, who are U.S. citizens with valid Social Security numbers are eligible to receive a one-time $1,000 contribution from the federal government. This pilot program contribution does not count against the $5,000 aggregate annual contribution limit.

"The compound growth potential is remarkable," Inayat noted. "A $1,000 seed contribution at birth, assuming historical market returns, could grow to approximately $500,000 by retirement age—without any additional contributions. Families who maximize the $5,000 annual limit could accumulate substantially more."

Employers may also contribute up to $2,500 annually toward an employee's or dependent's Trump Account on a pre-tax basis under new Section 128 of the Code. Contributions to Trump Accounts may commence on or after July 4, 2026.

Qualified Overtime Compensation Deduction

For tax years 2025 through 2028, eligible taxpayers may deduct qualified overtime compensation—specifically, the premium portion of overtime pay required under the Fair Labor Standards Act. The deduction is capped at $12,500 for single filers ($25,000 for married filing jointly) and phases out for taxpayers with modified adjusted gross income exceeding $150,000 ($300,000 for joint filers).

"This provision requires careful documentation," Inayat explained. "For tax year 2025, the IRS has provided transition relief allowing employers to use any reasonable method to estimate qualified overtime compensation, and penalty relief for employers who cannot separately report overtime on Form W-2. Taxpayers should retain paystubs and payroll records to substantiate their deduction. Beginning in 2026, employers must report qualified overtime compensation using W-2 Box 12 code 'TT' on information returns."

The deduction applies only to the FLSA overtime premium — typically the "half" portion of time-and-a-half pay — not to regular wages earned during overtime hours. Independent contractors and gig workers do not qualify under current guidance. Taxpayers seeking to claim the OBBBA overtime deduction should consult a qualified tax advisor to ensure proper reporting and maximize their eligible deduction amount.

SALT Deduction Cap Increase

The OBBBA raises the state and local tax (SALT) deduction cap from $10,000 to $40,000 for the 2025 tax year, with the cap scheduled to increase to $44,000 in subsequent years. This change is particularly significant for taxpayers in high-tax jurisdictions such as New York, where combined state and local income taxes frequently exceed the prior cap.

"For our NYC clients especially, this is a substantial change," Inayat said. "Taxpayers who were previously limited to a $10,000 SALT deduction may now recover up to $30,000 in additional deductions. Combined with pass-through entity election strategies, this creates meaningful planning opportunities for business owners in high-tax states."

Vehicle Loan Interest Deduction

Taxpayers may now deduct up to $10,000 annually in interest paid on loans used to purchase qualified passenger vehicles for personal use. The vehicle must have undergone final assembly in the United States, which can be verified through the National Highway Traffic Safety Administration VIN Decoder.

The deduction phases out for taxpayers with modified adjusted gross income exceeding $100,000 ($200,000 for joint filers). Lease payments do not qualify. Taxpayers must include the vehicle identification number on any return claiming this deduction.

"For families financing vehicle purchases, this deduction could yield $1,000 to $2,500 in annual tax savings depending on their loan terms and marginal tax bracket," Inayat said.

Expanded Geographic Reach

Red White and Blue Tax Services now serves business owners throughout the DFW metroplex — including Dallas, Fort Worth, Southlake, Frisco, Plano, McKinney, Allen, Irving, Coppell, and Arlington — as well as the New York City metropolitan area, including all five boroughs, Long Island, and Westchester County. The firm provides tax preparation, tax planning, bookkeeping, and business advisory services to clients in industries including construction, restaurants, medical practices, real estate, retail, and professional services.

The firm also serves a growing national client base of tech employees and corporate professionals seeking specialized equity compensation tax advice, including RSU vesting strategies, ISO exercise planning, and ESPP disposition timing.

The firm specializes in:

• Business Tax Planning and Preparation — Income tax, franchise tax, payroll tax, sales tax, and R&D tax credit compliance for LLCs, S-corporations, C-corporations, and partnerships, including S-corp election optimization and entity structure analysis
• Stock Compensation Tax Planning — RSU tax planning, ISO alternative minimum tax (AMT) strategy, ESPP qualified disposition planning, and NSO exercise timing for employees of publicly traded companies
• Year-Round Tax Advisory — Quarterly tax projections, estimated tax payment calculations, Section 179 deduction planning, and entity structure optimization, including guidance on 2026 filing deadlines (Form 1120-S due March 16, 2026; Form 1065 due March 16, 2026)
• Bookkeeping and Financial Reporting — Monthly reconciliation, cash flow analysis, KPI development, and QuickBooks integration

"Our virtual practice model allows us to serve clients across both markets with the same level of attention and expertise," Inayat said. "Whether you're a construction company in Fort Worth dealing with 1099 compliance, a restaurant owner in Brooklyn navigating NYC's Unincorporated Business Tax, or a tech employee managing RSU vesting and ISO alternative minimum tax exposure, we bring specialized knowledge to complex situations."

New Digital Platform

The redesigned rwbtax.us platform provides prospective and current clients with comprehensive information about services, pricing transparency, and streamlined consultation scheduling. The site features dedicated resources for both the DFW and NYC markets, reflecting the firm's commitment to serving each region's unique tax landscape.

About Red White and Blue Tax Services

Red White and Blue Tax Services is a tax preparation and advisory firm founded in 2013 and headquartered in Brooklyn, New York, with operations in the DFW metroplex. The firm serves over 300 active clients nationwide through its platform at rwbtax.us, specializing in year-round tax planning, small business bookkeeping, equity compensation tax strategy, and business advisory services for small and medium-sized businesses and individuals with complex tax situations — including stock options, RSUs, ISOs, and ESPPs. Founded in 2013, the firm brings over a decade of hands-on experience serving business owners across diverse industries.

Founder Haziq Inayat has led the boutique firm since its founding in Brooklyn's Crown Heights neighborhood in 2013, building a practice of over 300 active clients through a year-round advisory approach that goes beyond seasonal tax preparation. The firm has been featured on NPR Marketplace for its approach to small business tax strategy.

For more information, to learn about OBBBA tax planning strategies, or to schedule a complimentary consultation, visit rwbtax.us or call (347) 787-0596.

This press release is intended for informational purposes only and does not constitute tax, legal, or financial advice. Tax laws and regulations are subject to change, and individual circumstances vary. Taxpayers should consult with a qualified tax professional regarding their specific situation. Circular 230 Disclosure: To ensure compliance with Treasury Department regulations, we inform you that any tax advice contained in this communication is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties under the Internal Revenue Code.

Press Inquiries

Red White and Blue Tax Services
Haziq Inayat
Principal
haziq [at] rwbtax.us
347-787-0596
https://rwbtax.us
DFW - 820 S MacArthur Blvd #105-314 Coppell TX, 75019
NYC - 819 Park Place, Brooklyn NY 11216