(Radio Iowa) – A regional official with the U.S. Small Business Administration visited a central Iowa bar Wednesday afternoon, to talk about a tax break for workers who get tips or overtime pay. Employees who have income from tips could claim a tax deduction of up to 25-thousand dollars on their 2025 tax return – which was due on April 15th. People paid for overtime work could get a tax deduction of up to 12-thousand-500 dollars.
Brad Zaun is the S-B-A’s administrator for the Great Plains region, which includes Iowa. He says the One Big Beautiful Bill President Trump signed last July also helped small business owners because a big tax break they’d been getting since 2017 is now permanent. “People don’t really realize the benefits until they go in and have their taxes done,” Zaun said.
Zaun says there was an increase in the number of S-B-A loans granted to businesses in Iowa, Missouri, Kansas and Nebraska last year and he’s predicting another increase this year. “Obviously there are families out their struggling because of what’s gone on in Iran and hopefully they’ll get that all finished up soon,” Zaun said. “I do believe that the third and fourth quarter of this year are going to be great for not only the general public, but certainly business that’s out there.”
Zaun says the S-B-A is expecting a surge in loan applications later in the year. Zaun toured Whiskey River, a sports pub and bar in Ankeny, Wednesday afternoon, then met with a few employees and local business owners.
