How to Maximize Your Tax Refund in 2025

Filing for taxes can be a stressful and daunting task even in the most straightforward of cases. Instead of losing sleep over filing, keep it stress-free with the assistance of the tax professionals at Watkins & Co.. After over 30 years of experience as a thriving accounting firm in Jackson, Mississippi, the tax pros at Watkins & Co. are your go-to local tax experts. We offer a comprehensive suite of accounting services designed to provide for every accounting need of individuals and businesses in the Jackson area. 

(more…)

Mississippi Tax Law Changes 2025

A new year brings with it important changes in tax laws that are vital for every individual and business in Mississippi to know. With both federal and local state tax laws changing, individuals across every income bracket are likely to be affected, as well as businesses operating in the great Magnolia State. Not only is it important for you to know the new tax laws to ensure you’re in complete compliance with the IRS but it’s also crucial to be aware of when you’re doing any financial planning for the years ahead. Watkins & Co. has proudly provided businesses and individuals across Mississippi with experienced and knowledgeable tax services. Offering everything from financial planning to filing taxes for individuals, tax advice, estate planning, and serving as business tax accountants, we’ve helped our local community members navigate the tax world successfully. Our skilled tax accountants strive to keep you fully informed so that you can make the best decisions for your financial future. 

What’s Changing in Mississippi’s Tax Laws in 2025

In addition to the federal tax changes in 2025, as discussed in the previous article, Mississippi’s new tax laws also hold several changes.  

Mississippi is considering various tax reforms for 2025 that will affect residents and business owners across the state. 

• Individual income tax in Mississippi 2025: Mississippi has planned to eventually bring state income tax to a flat 4%, and with that goal in mind, has been conducting a phased reduction in individual income taxes. 2025 continues that process with a reduction of individual taxes with the top marginal rate decreasing to 4.4% (it was 4.7% in 2024).
• Mississippi property tax law changes 2025: This year, Veterans who are 90 years or older will be exempt from ad valorem taxes on homestead properties.
• Hazardous waste cleanup tax: This tax is applied on the sales of petroleum and petroleum products, and it will increase to 1.12% this year (up from 0.675 last year).
• Corporate income tax law changes in MS 2025: Another tax aspect that the state of Mississippi is phasing out slowly is capital tax stock, although no changes have occurred this year.  

What can you expect as upcoming changes in tax laws over the next several years?

As of now there is legislative interest in making changes to various aspects of Mississippi’s tax laws.

• Sales tax: Currently, Misssippis has the highest grocery sales tax in the nation at 7%. Legislators are pushing to reduce this over the next several years. 
• Individual income taxes: The phase out will continue until these taxes are established at a flat rate of 4%. As of now, it is projected to end next year (2026) at a flat rate of 4%.

Best Tax Accountants Near Me

For experienced guidance in filing for taxes and tax planning for yourself of your business, visit Watkins & Co. Working with Watkins & Co. brings several advantages for you. As Mississippi natives, we are well-versed in Mississippi tax laws as well as federal tax requirements. We offer proactive planning designed to keep you fully informed and able to make wise financial decisions that adapt to the changing tax laws each year. From individual tax preparation to complicated business tax filing and planning, we offer comprehensive services that cover every aspect of your financial needs. Watkins & Co. is your knowledgeable, local tax accounting firm and you can rely on us to protect your financial interests for years to come. 

2025 Tax Law Changes 

A new year often brings with it numerous federal tax and state tax changes which can greatly impact your financial planning for the year. Watkins & Co. is here to break down the anticipated tax law changes for 2025 and ensure that your tax knowledge is current so that you can make fully informed financial decisions this year. 

Federal Tax Law Changes 2025

Are you wondering, “Will personal exemptions come back in 2025?” Or, “What are the standard deductions in 2025?” You’re on the right track. In 2025, there are a few key considerations for upcoming tax changes that may play a large role in your tax planning.

The main 2025 federal tax changes revolve around the Tax Cuts and Jobs Act (TCJA) which was enacted in 2017 and which changed deductions, expensing, depreciation, and tax credits for individuals and businesses. At the end of 2025, TCJA is set to expire which means that without any legislative action, the end of this year will bring with it a reversion back to federal tax laws before TCJA was passed. What does this mean for you?

• Individual tax rates will revert back to levels before TCJA which will result in the top rate increasing from 37% to almost 40%.
• Standard deductions and personal exemptions were doubled and when TCJA expires, the standard deduction will decrease and taxable income calculations will increase. Essentially, you’ll be paying higher income taxes and the standard deduction will go down.
• An entire slew of deductions and depreciation factors were adjusted in TCJA to be more friendly to the individual or business. With TCJA ending, many of these are reverting back to original rates which will ultimately affect both personal and business bottom lines.
• Businesses will lose many of their tax credits that worked in their favor with TCJA. 

This entire year, we can all enjoy the benefits TCJA brings but planning for the expiration of this provision is essential. What we’ve shared here is simply a general overview of the tax reforms that you can expect. For more information on the changes that will come at the end of this year with the expiration of the Tax Cuts and Jobs Act, contact your tax professional at Watkins & Co. We can break down the ins and outs of the changes for you and determine which aspects may affect you the most. Most importantly, we can help you plan for these changes and minimize the impact of the TCJA expiration.

Tax Reforms for 2025

Other notable changes for the 2025 tax year are also important to consider. Standard deductions increase to $15,000 for individuals and joint filings increase to $30,000. Heads of household can expect $22,500 for the standard deduction in 2025. For this year, the top tax rate remains at 37% (but will increase to around 40% when TCJA expires). There are also changes to the alternative minimum tax exemption amounts, earned income tax credits, qualified transportation fringe benefit, health flexible spending cafeteria plans, medical savings accounts, foreign earned income exclusion, estate tax credits, annual exclusion for gifts, and adoption credits. Most changes this year work in the favor of the individual or business. To learn more about the tax changes this year and how they may affect you, contact our team at Watkins & Co. 

Our experienced tax accountants are standing by, ready to assist you with tax planning for the upcoming year. Watkins & Co. is here as your reliable partner in ensuring your financial future is stable and solid for this year and years to come. 

Independent Contractor Tax Reporting with Form 1099

As independent contractors and the businesses that hire them, adhering to guidelines and best practices when reporting taxes is crucial. Staying compliant and properly reporting with the right Form 1099 is an absolute must to remain in good standing with the IRS. Watkins & Co. is here to share some important information on 1099 tax reporting do’s and don’ts.

(more…)

Everything You Need to Know About 1099s in 2024

For those operating businesses where independent contractors or other non-traditional income payments are being made, 1099s are how you will report income paid to individuals or entities during the tax year. The main purpose of a 1099 is for the IRS to track income that falls outside of the scope of traditional taxes. Businesses, organizations, or individuals are responsible for issuing 1099s if they make such income payments. Similarly, individuals are required to file taxes with a 1099 if they made any income that is not reported under a W-2 or other tax reporting form. 

(more…)

5 Reasons to Use a CPA Firm 2024

Utilizing the services of a Certified Public Accountant (CPA) for a business of any size is a wise investment. From reducing expenses to minimizing tax benefits and ensuring compliance, CPAs can help your company save valuable time, effort, and money. The immeasurable benefit a reliable accounting firm brings is the peace of mind you’ll have from the knowledge that every financial aspect of your business is covered. In the Mississippi mid-state area, Watkins & Co. CPAs are your trusted partners – teaming with us provides numerous benefits that reach far beyond the day-to-day financial services we offer. 

(more…)

Small Business Tax Deductions: Benefits & Requirements 

Most small business owners cite doing their taxes as one of the most stressful and worrisome aspects of owning a business. Business taxes can be an incredibly tricky task and any wrong turn can have a detrimental effect on your business. On top of all that pressure, tax regulations and deductions vary by location and change constantly. Ensuring that you are in compliance while also maximizing your returns requires precise record-keeping, knowledge of state-specific regulations, and a deep understanding of available deductions. As such, it’s vital to consult with a professional tax firm like Watkins & Co. when determining your small business taxes and deductions. 

(more…)

Understanding and Managing Cash Flow for Small Businesses

Cash flow is the heartbeat of a small business and it’s crucial that you, as a business owner, manage this essential element effectively. Proper cash flow management can help you track expenses and revenue, identify potential problems early, and help guide your decision-making process. Yet cash flow can potentially be one of the biggest challenges you face. A U.S. Bank study found that 82% of recent small business failures reported that cash flow factored into their failure. So the question remains, how do you effectively manage cash flow for your company? Watkins & Co CPA experts are here to weigh in on the best cash flow management strategies.

(more…)

Tax Planning And Compliance For Small Businesses

Owning a small business is potentially one of the most rewarding experiences in life but can also present a fair share of challenges. You have to learn to wear many different hats, one of which is tax and compliance planner. Proper tax planning and compliance have a significant impact on your business’s financial growth and the longevity of your company. Yet keeping up with ever-changing tax laws and regulations can be overwhelming, especially when you’re already juggling the day-to-day operations of your business. 

We have good news for you! Tax professionals at Watkins & Co are here to share everything you need to know about tax planning and compliance for small businesses, as well as how our team can assist you in this crucial aspect of your business. 

(more…)

CPA Services for Physicians and Healthcare Providers

As a physician, you have a lot on your plate besides providing stellar care for your valued patients. An important aspect of your annual responsibilities includes navigating complex tax and accounting regulations, which can be a time-consuming and stressful experience. Fortunately, you are not in this alone! There are CPA services that can help make the process easier and ensure that your financial obligations are taken care of with accuracy and efficiency. It’s vital to find a CPA who can provide comprehensive services tailored to the unique needs of your practice. At Watkins, we provide you with a full suite of CPA services, enabling you to focus on what you do best: provide excellent patient care. Let’s take a closer look at what CPA services are available to healthcare professionals and how partnering with our team at Watkins can enhance your business.

(more…)