Tax Updates

The IRS is no longer mailing Refund Checks. We will be having our clients confirm their Bank routing and account numbers every year.

If clients owe taxes, we are also attempting to convert everyone to have the amount you owe directly withdrawn from your bank account and submitted to the appropriate agancy. If you pay estimates, it's a really good idea to have them paid via a withdrawl vs. mailing a check. It should be easier to have your money recorded to your IRS or State account this way. 

Federal Tax Law Updates and Adjustments for Individuals and Businesses 

Individual Tax Changes 

• TCJA tax brackets permanently extended (10%–37%). 

• Standard deduction increases in 2025 ($31,500 MFJ; $23,625 HOH; $15,750 Single/MFS). 

• Child Tax Credit increased to $2,200 with refundable amounts indexed. 

• QBI §199A deduction made permanent; new $400 minimum deduction; phaseouts raised to $75k/$150k MFJ. 

• Estate exemption resets to a $15M base in 2026, indexed thereafter. 

• Mortgage interest and casualty loss restrictions made permanent. 

• SALT cap temporarily increased to $40k in 2025; returns to $10k after 2029. 

• Trump Accounts created for children ages 0–17 with federal seeding and LTCG treatment. 

Business Tax Changes 

• 100% Bonus Depreciation permanently reinstated after Jan. 19, 2025. 

• R&E §174 full expensing allowed beginning 2025, retroactive election for small businesses. 

• §163(j) interest limitation rules made permanent. 

• §179 increased to $2.5M with phaseout at $4M. 

• Special depreciation for qualified production property (QPP) through 2031. 

• QSBS exclusion cap raised to $15M with tiered percentages based on holding period. 

• Excess Business Loss limitation made permanent. 

IRS/Compliance Updates 

• 1099-K threshold reverts to $20k/200 transactions. 

• 1099-MISC/NEC threshold raised to $2,000 starting 2026. 

• ERC enforcement tightened; new penalties and extended 6-year statute. 

• Direct File suspended pending redesign. 

• Simple payment plans available for ≤$50,000 balances. 

• Federal paper checks eliminated after September 30, 2025. 

Health & Retirement 

• HSAs expanded starting 2026; new limits $4,400 self-only and $8,750 family. 

• 2025 retirement contribution limits updated (IRAs, SIMPLE, 401(k)).