The Friday Accrual: October 24, 2025

Profit & Loss Report

Social Security Taxation Remains, Senior Deduction Now Available

The 2025 Tax Act doesn’t make Social Security benefits tax-free. Existing tax rules remain unchanged, with up to 85% of benefits still taxable depending on income. Misunderstanding stems from different campaign news and misleading reports suggesting otherwise.

What’s new is a temporary senior deduction from 2025–2028: $6,000 for singles or $12,000 for joint filers, reduced for higher incomes. Deductions aren’t related to Social Security and don't change benefit taxability - seniors must plan carefully to avoid higher taxable income.

Source: Thomson Reuters 

Rare Accounting Oddities

Did you know accounting origins transcend Mesopotamia’s records?

Mesopotamians recorded transactions with clay tokens—early “data entries” for inventory, even sealing them in clay envelopes (bullae) as proof, being history’s first audit trail.

Those primitive marks soon evolved into cuneiform writing, evolving into our first written language. Bookkeepers helped invent civilization’s first receipts and our first ever alphabet.

So, the next time you open Excel, just remember — you’re continuing a 7,000-year-old tradition of keeping the world in financial balance… minus their ancient clay tokens. 

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Journaling Insider

IRS Restores $20,000 & 200 Transaction Limit Under OBBBA Provision

The IRS confirmed using new FAQs that the One Big Beautiful Bill Act (OBBBA) restores the $20,000 and 200-transaction threshold for Form 1099-K, retroactive to 2022 - establishing back the $600 limit introduced under the American Rescue Plan Act (ARPA).

PayPal and online marketplaces will only issue Form 1099-K when both limitations are met. The IRS fact sheet, which includes over 50 detailed FAQs, clarifies that some states may impose lower thresholds, leading to additional reporting for certain taxpayers.

Source: CPA Practice Advisor

Making Cents of Accounting

Accountant 1: My love life’s like my trial balance.

Accountant 2: Out of balance again?

Accountant 1: Yup. Always been off since 2020.

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