| The new “OBBBA” One Big Beautiful Bill Act was enacted this past July, 2025. |
| Here is a list of the major changes that could effect you as a Taxpayer.
|
| Category |
Tax Law Topic |
Comments & Tips |
| General info |
Refunds are EXPECTED to be delayed in 2026 due to the 2025 Government shut-down. |
file early and electronically. |
| Income |
Tips will not be considered as taxable income. Documentation will be required. Expires 12/31/28. |
prepare a spreadsheet to prove the amount on W-2 that were TIPS. |
| Income |
Overtime pay will not be taxable. Documentation is required. |
OT is usually listed on your W-2. |
| Income |
The new tax rates are 10, 12, 22, 24, 32, 35, and 37% are reflected in the 2026 tax tables. |
self explanatory. |
| Income |
NCAA and the new NIL rules requires student athletes to report as cash any income or additional gift they receiveas a signing bonus. |
includeds gifts (ex.-cars) and cash. |
| Income |
In 2026, the new limit for reporting earned income on a 1099-NEC will rise from $600 to $2,000. |
FYI |
| itemize |
The OBBBA brings back a change to reporting ITEMIZED deductions. A change several years back limited the amount of Taxdeductions at $10,000. In 2025 reporting this amount has increased to $40,000.AKA-SALT deductions. |
if using itemized deductions then taxes are now limited to $40,000 . |
| Itemizing |
Future cost billed to the homeowner for assessments like new sewers, etc are not expenses |
these are not deductible. |
|
that can be deductible but can be added the Cost Basis of the home. |
|
| Std deduct |
Future cost billed to the homeowner for assessments like new sewers, etc are not expenses that can be deductible but can be added the Cost Basis of the home. |
FYI |
| Std deduct |
Standard deduction has been increased for 2025. |
FYI |
|
Increases to $15,750 for Single filers and $31,500 for married filing joint. |
|
| Bus deduct |
Home Office deduction usually raises a audit flag for the IRS. |
FYI |
| Bus deduct |
Long Term Insurance premiums are deductible on Schedule C. |
FYI |
| Bus deduct |
Software can be 100% written off. |
FYI |
| Bussiness Set-up |
Business Start-Up cost, in the initial year and no income to off-set, can only write-off $5,000 max. |
FYI |
| Bus deduct |
Business mileage rate for 2025 is $0.70 per mile. |
FYI |
| 1099 Emps |
If you operate a business and hire 1099 workers you need to have a W-9 completed for each worker. |
pertains to Businesses. |
| Home Office |
A W-2 employee who works even 100% of the time at home cannot use the Home Office deduction. The Clean Vehicle Credit was phased out on Sepetember 25, 2025. |
FYI |
| Credit |
New is a itemized deduction for a Qualified passenger vehicle loan interest deduction when paid during 2025, personal, car or home equity loans. |
FYI |
| Credit |
Child Tax Credit has increased for 2025. From $2,000 to $2,200 per child. |
FYI |
| Credit |
The Energy Efficient Home Improvement Credit will phase out at the end of 2025. |
included roofs, boilers, A/C etc |
| Credits |
Educator Credit is maxed at $300 for 2025. |
this is for teachers |
| Credit |
Seniors 65 and older get an addition $6,000 per person deduction when itemizing or using the std deduction. Your AGI must be less than $75,000 ($150,000 if MFJ). Expires 12/31/2088. |
Important for SENIORS |
|
Your AGI must be less than $75,000 ($150,000 if MFJ). Expires 12/31/2088. |
|
| Credit |
Student Loan Interest deduction is maxed out at $2,500. |
FYI |
| Credit |
QBI changes has been made permanent and phasing amounts are increased. |
for Business owners. |
| Credit |
The Commerical Clean Vehicle Credit is avialable for any QUALIFIED car purchased before 9/30/25. |
FYI |
| Credit |
To receive a Earned Income Credit both husband and wife must have earned income. |
FYI |
| Credits |
Adoption credits have increased for 2025. |
FYI |
| Credits |
Contributions to Charities Credit is re-instated for 2026. It applies to those who DO NOT ITEMIZE. The limitation is $1000 for Single filiers; $2000 for MFJ filers. Cash only. |
No household items, etc |
| Credits |
Sale of avacant Land may qualaifiy for the EXEMTION CREDIT ($250000/500,000) if in |
|
| Credits |
conjunction with the residence and sold 2 years before or after the sale of the land. |
IMPORTANT CREDIT. |
| Penalty |
The IRS is cracking down on insuring that TAXES DUE must be paid by April 15th. Penalties will be assessed. NOTE, you may file for an extension to file YOU MUST PAY the TAX amount (within 90% of what you estimate it to be) by April 15th date. |
FYI |
| Gift Tax |
The annual tax free deduction allowance in 2025 is now $19,000 per individual. |
FYI |
| Filing Date |
For 2025 returns are due on April 15, 2026, as well as the tax due. NO Exception or Pay a PENALTY. |
FYI |
| Refunds |
Did you get your INFLATION check from NYS in 2025. Singles get $200 & MFJ get $ 400. |
FYI |
| Roth IRAs |
To create a ROTH Saving account you need EARNED INCOME (W-2). |
FYI |
| IRA limits |
IRA contribution limits are increased for 2025 return. |
FYI |
| NEW YORK STATE CHANGES |
| NYS Cr |
529 Education Savings accounts can now be used for Kindergaren to College tuitions. |
FYI |
| NYS Credit |
Individuals can deduct long-term care ins premiums without itemizing. The amount |
|
|
you can deduct is limited based on your age by 12/31/25. Only NYS allows this credit. |
FYI |
| NYS Addl Cr |
A change to the NYS Child credit will increase annual cr to $1,000 for each child under the age of four and up to $500 per child ages four through sixteen. |
FYI |
| Taxes owed |
Sometimes it may be easier to use a cr card to pay your taxes instead of dealing w/ IRS. IRS will be charging (approx $22 to 178) for a payment plan. |
FYI |
| Security |
If you have been issued a IPPIN (Identitity Protection Personal Identification Number) in the past years EXPECT to receive a new one for each tax year. Supply this PIN to your tax preparer with your financial information. |
FYI |
| Trusts |
If you have a TRUST, a Form 1041 must be filed if the income is more than $600. |
FYI |
