Top 10 Tax & IRS News
One Big Beautiful Bill — Major Tax Law Signed
Signed July 4, 2025, this legislation permanently extends key provisions of the 2017 Tax Cuts and Jobs Act and introduces new deductions for tips, overtime pay, car loan interest, and seniors. Full IRS provision summary available.
IRS Releases 2026 Tax Year Inflation Adjustments
Standard deduction rises to $32,200 (MFJ), $16,100 (single), and $24,150 (head of household) for 2026. Estate tax basic exclusion increases to $15,000,000. Annual gift exclusion remains at $19,000.
2026 Tax Filing Season Opens January 26
The IRS began accepting 2025 income tax returns on January 26, 2026. Key tips include choosing direct deposit for faster refunds and reviewing withholding to avoid surprises.
No Changes to 2025 Withholding Tables Under New Law
The IRS confirmed that individual information returns and withholding tables for tax year 2025 are unaffected by the One Big Beautiful Bill. Employers do not need to update payroll withholding for 2025.
100% Bonus Depreciation Restored for Business Property
Businesses can now deduct 100% of the cost of qualifying property placed in service after January 19, 2025 in the first year. The Qualified Business Income (QBI) 20% deduction is also made permanent for pass-through entities and self-employed taxpayers.
Child Tax Credit Increased to $2,200; New Senior Deduction
The Child Tax Credit increases to $2,200 for tax years 2025 and 2026. A new above-the-line deduction for seniors age 65+ is available. Maximum EITC for families with 3+ children rises to $8,231 for 2026.
IRA Contribution Limit Rises to $7,500 for 2026
Annual IRA contribution limits increase to $7,500 for 2026 (up from $7,000). The catch-up contribution limit for those 50 and older increases to $1,100. HSA-eligible plan rules also expand to include bronze and catastrophic health plans beginning January 1, 2026.
New Form 1099-DA Required for Digital Asset Transactions
Starting in 2025, brokers and digital asset platforms must report proceeds from cryptocurrency and other digital asset transactions using the new Form 1099-DA — similar to how stock sales are reported on Form 1099-B.
Residential Clean Energy & Home Improvement Credits Expiring
The Energy Efficient Home Improvement Credit (25C) and the Residential Clean Energy Credit (25D) are not allowed for property placed in service or expenditures made after December 31, 2025. Act before year-end to claim these credits.
IRS Phasing Out Paper Refund Checks — Use Direct Deposit
The IRS is phasing out paper refund checks. Taxpayers who request a paper check may wait 6 weeks or longer. The IRS strongly recommends direct deposit for faster, more secure refund delivery.