By Cesar Ochoa, President, Ledger Guardian
Practical Tax Tips for LGBTQ+ Individuals and business owners
Tax season doesn’t have to be stressful or unpredictable. The best tax results usually come from preparation and planning, not last-minute filing. For individuals, couples, families and business owners, in our community, understanding how life events, income sources, and financial structures affect taxes can make a meaningful difference. As a member of the LGBTQ+ community myself, I understand how important it is to feel respected, safe, and supported when discussing personal finances. My goal is to help our community feel informed and confident, so you can claim every deduction and credit you qualify for, stay compliant, and avoid surprises.
In recent years, tax laws have evolved significantly. In 2025, Congress approved new tax laws, which introduced new deductions and expanded existing benefits that could positively impact many taxpayers this tax season.
Get organized early and understand your filing and family structure
Start by gathering key documents such as W-2s, 1099s, investment statements, and records of major life changes like marriage, relocation, adoption, or new dependents. Organized records help ensure that valuable deductions and credits are not missed. Filing status, shared assets, and household arrangements can significantly impact taxes. Individuals, couples, blended families, and business owners should review how their structure affects eligibility for deductions and credits.
Take advantage of family-related credits
For many LGBTQ+ families, adoption-related tax benefits can be substantial. The federal and state adoption tax credit allows eligible taxpayers to claim qualified adoption expenses, with a maximum federal credit of $17,670 for tax year 2026. Proper planning and documentation are essential to maximizing this benefit.
New deductions for overtime and tips
Some newer tax provisions may allow eligible taxpayers to claim new deductions for qualified overtime compensation and tips:
Overtime compensation may be deductible up to $12,500 ($25,000 for married couples filing jointly), subject to income limits and eligibility rules, and for those in the service industry that receive Tip income may deduct up to $25,000 per year. These provisions can provide meaningful tax savings for workers in industries where overtime and tips represent a significant portion of income, since it lowers your taxable income.
State and local taxes and vehicle-related deductions
The cap on the federal deduction for state and local taxes (SALT) was also increased, allowing itemizers to deduct up to $40,000 of state income tax and local taxes, such as property taxes, mortgage interest, and some medical expenses.
In addition, interest on qualifying loans for new vehicles with final assembly in the United States may be deductible, up to $10,000 per year, unlike many traditional deductions, this benefit may be available even to taxpayers who do not itemize, making it accessible to a broader range of individuals and families.
Think strategically, not just digitally
Tax software can be helpful sometimes, but it does not replace professional tax planning. A qualified tax professional can help identify opportunities related to business structure, timing of income and expenses, and long-term tax strategies. Even taxpayers who normally file on their own may benefit from professional guidance to ensure they are not missing deductions or credits they may be entitled to.
The best tax return is built throughout the year, not just during tax season. With the right planning and guidance, taxpayers can turn tax season into an opportunity rather than a challenge.
—
At Ledger Guardian, we support our clients year-round, not just during tax season. We are proud to be part of the LGBTQ+ community, and member of OUT Georgia, and our mission is to help individuals and businesses with their accounting needs while providing clear, strategic guidance on tax and financial planning.
Please contact Cesar Ochoa and Ledger Guardian for all your tax and financial planning needs. Visit ledgerguardian.com, email cesar@ledgerguardian.com, or call 404-606-3685.