2026 Tax Planning and Updates for 2025 Tax Return

We wish you a Happy New Year 2026! May this year bring you and your loved one’s new opportunities, renewed optimism, and continued joy. We hope it is filled with love, abundance, and lasting prosperity.

Thank you for allowing us to be part of your journey. Your trust and support mean so much to us, and we look forward to serving you throughout the year ahead.

Planning for 2026

IRS announced annual inflation adjustments for more than 60 tax provisions, including the tax rate schedules and other tax changes. The highlights include:

Federal Tax Brackets (10% to 37%) have been made permanent, and the thresholds have been adjusted for inflation.
Standard Deduction: The standard deduction increases to $16,100 for single filers, $32,200 for married couples filing jointly, and $24,150 for heads of household. An additional deduction of $6,000 for individuals age 65 and older continues through 2028.
State and Local Taxes (SALT): The deduction cap is temporarily increased to $40,000 for married couples filing jointly (with income phaseouts), up from the previous $10,000 limit.
Retirement Contributions: The maximum employee contribution to a 401(k), 403(b), and 457 plan increases to $24,500. The IRA annual contribution limit rises to $7,500.
New Deductions: The temporary deductions introduced for interest on qualified new vehicle loans ($10,000 cap), qualified overtime pay ($12,500 cap), and qualified tip income ($25,000 cap) remain available through the 2028 tax year.
Energy Credits Expiration: Most clean energy tax credits for new/used electric vehicles and residential home improvements expired at the end of September or December 2025 and are unavailable for 2026 purchases or installations.
Child Tax Credit: The maximum credit remains $2,200 per qualifying child, with a refundable portion of up to $1,700.
Alternative Minimum Tax (AMT): The AMT exemption amount is $90,100 for single filers (phases out starting at $500,000) and $140,200 for married couples filing jointly (phases out starting at $1,000,000).
Business Provisions: Key business provisions from the Tax Cuts and Jobs Act (TCJA) of 2017 were made permanent, including 100% bonus depreciation and the 20% Qualified Business Income (QBI) deduction for pass-through entities.
Digital Assets: Brokers are now required to issue Form 1099-DA to report proceeds from cryptocurrency and other digital asset transactions occurring in 2025.
Annual Gift Tax: The annual Gift Tax exclusion remains $19,000 per recipient for 2026.

Key Dates for 2025 Tax Filing

The U.S. income tax system is pay‑as‑you‑go. To avoid interest‑based penalties, you must pay at least 90% of your taxes due by the regular deadlines.

Most taxpayers must file their personal tax 2025 return or request for extension by April 15, 2026. Taxpayers living or serving abroad have until June 15, 2026 to file. Extensions are due October 15, 2026.
Partnership and S‑corporation returns are due March 16, 2026, with extensions due September 15, 2026.
C‑corporation returns are due April 15, 2026, with extensions due October 15, 2026.
Nonprofit returns are due May 15, 2026, with extensions due November 16, 2026.

Get Ready to Handle Your Tax Return

We request you to upload your tax documents into the secure client portal by March 15, 2026 to ensure timely completion of personal returns.
Filing an Extension is very common and not a red flag. However, an extension to file is not an extension to pay. We can calculate estimated taxes to help avoid underpayment penalties as you are waiting for tax documents such as K1s and overseas filing or needing more time to finalize your complex return.
We recommend scheduling your appointment to finalize your 2025 tax return now and uploading your tax documents as you receive them.

We look forward to supporting you again this year.