Taxation

The 2025-26 tax season is upon us. With considerable tax changes, fading policies, new deductions, and updated limits, staying on top of your taxes can feel overwhelming. Our 2025/2026 Quick Tax Reference Guide has been designed with an aim to provide business owners and CPAs all the essential numbers and deadlines in one place. From standard mileage rates and retirement contribution limits to income tax brackets, Medicare premiums, and estate planning thresholds, you’ll find everything you need to make informed decisions, reduce risk, and plan strategically. Whether you’re a business owner planning corporate filings, a high-net-worth individual preparing for personal taxes, or an accounting professional looking for a quick reference, this simple and easy-to-use resource is designed to give you a clear picture of what’s ahead. Think of it as your roadmap for 2025/2026 taxes — it will save your time, help you avoid mistakes, and seize opportunities for maximum tax saving. [Note: This guide is based on official U.S. federal tax data for 2025/2026 from IRS, SSA, and CMS sources. We just intend to present it in a practical, easy-to-use format for businesses and individuals.] Filing Deadlines for 2025 Tax Returns Staying on top of filing deadlines is crucial to avoid penalties. This table summarizes the due dates for various returns, including extensions where applicable, so you can plan your filings efficiently. Type of Return (Calendar Year) Due Date Extended Due Date Employees – Form W-2* February 2 March 2 Recipient – Form 1099-NEC** February 2 N/A  Recipient – Form 1099-MISC*** February 17 March 17 Partnerships, LLCs – Form 1065**** March 16 September 15 S Corporations – Form 1120S**** March 16 September 15 Estates and Trusts – Form 1041***** April 15 October 1 FBAR – FinCen Form 114 April 15 October 15 Corporations – Form 1120 April 15 October 15 Individuals – Form 1040 April 15 October 15 Exempt Organizations – Form 990 May 15 Nov 16 Employee Benefit Plans – Form 5500 Jul 31 Oct 15 * W-2 due to employee and SSA** Non-employee compensation*** Other payments**** Also applies to Schedules K-1, K-2, K-3 for equity holders***** File Form 7004 for automatic 5½-month extension Individual Tax Rate Schedules Understanding your tax brackets is essential for accurate planning. The following tables break down the 2025–2026 rates for different filing statuses to help you calculate your potential tax liability. 2025 Taxable Income Tax Rate / Tax Calculation Not over $23,850 10% of taxable income $23,850 – $96,950 $2,385 + 12% of the amount over $23,850 $96,950 – $206,700 $11,157 + 22% of the amount over $96,950 $206,700 – $394,600 $35,302 + 24% of the amount over $206,700 $394,600 – $501,050 $80,398 + 32% of the amount over $394,600 $501,050 – $751,600 $114,462 + 35% of the amount over $501,050 Over $751,600 $202,154.50 + 37% of the amount over $751,600 2026 Taxable Income Tax Rate / Tax Calculation Not over $24,800 10% of taxable income $24,800 – $100,800 $2,480 + 12% of the amount over $24,800 $100,800 – $211,400 $11,600 + 22% of the amount over $100,800 $211,400 – $403,500 $35,932 + 24% of the amount over $211,400 $403,500 – $512,450 $82,048 + 32% of the amount over $403,500 $512,450 – $768,700 $116,896 + 35% of the amount over $512,450 Over $768,700 $206,583.50 + 37% of the amount over $768,700 Head of Household For 2025: Taxable Income Tax Not over $17,000 10% $17,001–$64,850 $1,700 + 12% over $17,000 $64,851–$103,350 $7,442 + 22% over $64,850 $103,351–$197,300 $15,912 + 24% over $103,350 $197,301–$250,500 $38,460 + 32% over $197,300 $250,501–$626,350 $55,484 + 35% over $250,500 Over $626,350 $187,031.50 + 37% over $626,350 2026: Taxable Income Tax Not over $17,700 10% $17,701–$67,450 $1,770 + 12% over $17,700 $67,451–$105,700 $7,740 + 22% over $67,450 $105,701–$201,750 $16,155 + 24% over $105,700 $201,751–$256,200 $39,207 + 32% over $201,750 $256,201–$640,600 $56,631 + 35% over $256,200 Over $640,600 $191,171.50 + 37% over $640,600 Unmarried Individuals (Single) 2025: Taxable Income Tax Not over $11,925 10% $11,926–$48,475 $1,192.50 + 12% over $11,925 $48,476–$103,350 $5,578.50 + 22% over $48,475 $103,351–$197,300 $17,651 + 24% over $103,350 $197,301–$250,525 $40,199 + 32% over $197,300 $250,526–$626,350 $57,231 + 35% over $250,525 Over $626,350 $181,769.75 + 37% over $626,350 For 2026: Taxable Income Tax Not over $12,400 10% $12,401–$50,400 $1,240 + 12% over $12,400 $50,401–$105,700 $5,800 + 22% over $50,400 $105,701–$201,775 $17,966 + 24% over $105,700 $201,776–$256,225 $41,024 + 32% over $201,775 $256,226–$640,600 $58,448 + 35% over $256,225 Over $640,600 $192,979.25 + 37% over $640,600 Married Filing Separately For 2025: Taxable Income Tax Not over $11,925 10% $11,926–$48,475 $1,192.50 + 12% over $11,925 $48,476–$103,350 $5,578.50 + 22% over $48,475 $103,351–$197,300 $17,651 + 24% over $103,350 $197,301–$250,525 $40,199 + 32% over $197,300 $250,526–$375,800 $57,231 + 35% over $250,525 Over $375,800 $101,077.25 + 37% over $375,800 For 2026: Taxable Income Tax Not over $12,400 10% $12,401–$50,400 $1,240 + 12% over $12,400 $50,401–$105,700 $5,800 + 22% over $50,400 $105,701–$201,775 $17,966 + 24% over $105,700 $201,776–$256,225 $41,024 + 32% over $201,775 $256,226–$384,350 $58,228 + 35% over $256,225 Over $384,350 $103,291.75 + 37% over $384,350 Social Security & Self-Employment Tax Limits Social Security and Medicare taxes have annual limits. They can impact your contributions and planning. This table highlights the 2025–2026 thresholds for both employees and self-employed individuals. Tax 2025 2026 OASDI wage base $176,100 $184,500 HI wage base No limit No limit SECA OASDI earning base $176,100 $184,500 SECA HI No limit No limit Additional 0.9% Medicare Tax applies over certain thresholds. Retirement Contribution Limits Maximize your contributions to reduce taxable income and boost long-term savings. The following table shows 401(k), 403(b), SIMPLE, and IRA limits, including catch-up provisions for those 50 and older. 401(k), 403(b), 457, and SIMPLE Plans For 2025: Plan Type Elective Deferral Limit Catch-up Contribution (Age 50+) §401(k) $23,500 $7,500 §403(b) $23,500 $7,500 §457 $23,500 $7,500 SIMPLE $16,500 $3,500 For 2026: Plan Type Elective Deferral Limit Catch-up Contribution (Age 50+) §401(k) $24,500 $8,000 §403(b) $24,500 $8,000 §457 $24,500 $8,000 SIMPLE $17,000 $4,000 Traditional and Roth IRA This table outlines 2025–2026 figures for both traditional and Roth accounts,

For U.S. business owners, the 2025–26 tax season officially began on January 26, 2026. While you can file your returns till April 15, procrastinating your taxes and leaving tax planning to the last minute only leads to costly mistakes and missed opportunities. As you near the tax deadline, your focus shifts from tax planning to tax survival. That’s when you miss the little things – the credits, the deductions, and even the opportunities to manage your income and expenses in a way that could save money. In this blog, we share some practical tax planning tips that you can use to significantly bring down your tax bill. Why This Tax Season Matters More? The 2025–26 tax season is especially important because several provisions under the Tax Cuts and Jobs Act (TCJA) have expired or changed after the sunset of 2025, thanks to the One Big Beautiful Bill (OBBB). These potential changes may affect: This makes proactive tax planning even more critical. Decisions made now could have a direct impact on how much tax you pay going forward. Practical Tax Planning Strategies for 2025-26 Tax Season 1. Understand Your Tax Bracket and Know How It Works 2025 Tax Brackets Tax Rate Single Filers/Married Filing Separate (MFS) Married Individuals Filing Jointly/Qualifying Surviving Spouses Heads of Households 10% $0 – $11,925 $0 – $23,850 $0 – $17,000 12% $11,926 – $48,475 $23,851 – $96,950 $17,701 – $64,850 22% $48,476 – $103,350 $96,951 – $206,700 $64,851 – $103,350 24% $103,351 – $197,300 $206,701 – $394,600 $103,351 – $197,300 32% $197,301 – $250,525 $364,601 – $501,050 $197,301 – $250,500 35% $250,526 – $626,350 (Single)$250,526 – $375,800 (MFS) $501,051 – $751,600 $250,501 – $626,351 37% $626,351 or more (Single)$375,801 or more (MFS) $751,601 or more $626,351 or moreSource: Internal Revenue Service (IRS) Source: Internal Revenue Service (IRS) One of the basic but most important parts of tax planning is understanding your tax bracket. Most business owners are often confused. They think if they earn one dollar more, their entire income gets taxed at the higher rate. That’s not how it works. The US follows a progressive system. Here, your income is taxed in layers – not all at once. Only the amount that crosses into the next bracket is taxed at that higher rate. For example: If your taxable income is $80,000, you are not paying 22% on the full amount. Instead: This means a small increase in income does not push all your income into a higher tax rate. Even if it does, you can lower your taxable income through credits and deductions. Understanding how brackets work helps you decide: 2. Maximize Your Retirement Contributions Retirement accounts are powerful tax-saving tools. Contributions to certain accounts like 401(k), Traditional IRA, SEP IRA, or Solo 401(k) are tax-deductible. They can reduce your taxable income while allowing you to save for the future. To maximize the benefits: 3. Take Advantage of Tax Credits Tax credits are more powerful than deductions. They directly reduce your tax bill — dollar for dollar and can reduce the overall tax owed, leading to more savings. Some common credits include: Pro tip: Credits often have eligibility criteria. Make sure you qualify before claiming. Tax Deductions vs. Tax Credits – Know the Difference Many taxpayers confuse deductions and credits, but they work very differently. Feature Tax Deductions Tax Credits Impact Reduce taxable income Reduce tax owed Value Depends on tax bracket Dollar-for-dollar savings Effectiveness More beneficial for those in higher tax brackets More beneficial for those in lower tax brackets Example Retirement contributions Child Tax Credit 4. Time Your Income and Expenses Smart timing can make a big difference. When income is received. When expenses are paid. When purchases are made. Sometimes the difference between a higher or lower tax bill comes down to timing rather than totals. Accelerating expenses or delaying income, when done correctly, can smooth out tax liability and improve cash flow. For example: For individual returns: For business returns: While this approach doesn’t change your total income or expenses, it helps you plan your taxes (and sometimes reduce them) much better – in the current as well as upcoming years. 5. Use Business Deductions Business owners have access to a range of deductions (Itemized as well as Standard) that can significantly reduce taxable income. Common deductions include: The IRS requires clear records to support deductions. Make sure expenses are properly documented and directly linked to business activity. 6. Use Depreciation as a Strategic Lever Depreciation isn’t just a boring accounting term; it’s a way to save your cash. When you buy something big, like a $10,000 piece of machinery, the IRS usually doesn’t let you deduct the whole cost at once. They want you to spread it out over the years the machine is actually working for you. Depending on eligibility, you can now write off the entire purchase in year one. This can help you wipe out a huge chunk of your tax bill in one go. 7. Leverage Active vs. Passive Income It’s also important to understand how different types of income are taxed. Active income, such as wages or a salary from your work, is treated differently from passive income, like investment returns, rental income, or royalties. Passive income often comes with its own set of rules and tax rates, so consulting a tax advisor or accountant can help you understand how both types of income impact your overall taxes. 8. Make the Best of Tax-Loss Harvesting For those with investments that have lost value, tax-loss harvesting can be a valuable strategy. This involves selling investments that are currently at a loss and using those losses to offset gains from other investments. If your losses exceed your gains, you may be able to deduct a portion against ordinary income and carry the remainder forward to future years. This method can reduce your overall tax burden on investment income if used carefully. 9. Maintain Your Records Real-Time Whether you’re a business owner or filing personal taxes, keeping records organized

2026 is called the ‘tax reset’ year. With certain TCJA provisions expiring, new federal tax rules coming into effect, and IRS reporting requirements shifting, businesses are going to face a complex April filing season this year. Understanding 2026 tax changes for businesses is essential, as with all the ongoing modifications, companies can no longer rely on last-minute tax preparation.  Get your books in order now, if you haven’t done so yet, and understand the key tax changes to save thousands of dollars in taxes. It will also set you up for smarter, financially strong 2026. Key Tax Changes Impacting Businesses This Filing Season 1. 100% Bonus Depreciation is Back, and Has Been Made Permanent Thanks to the One, Big, Beautiful Bill (OBBB), bonus depreciation has been permanently fixed to 100%. This means that any qualified asset purchased and placed in service after January 19, 2025, may now be fully eligible for this deductibility. So, if you have bought business equipment, software, or machinery last year, you can use this deduction to drastically reduce your taxable income. 2. QBI Deduction Has Been Made a Permanent Part of Pass-Through Entities One of the biggest 2026 tax law updates of US is that the 20% Qualified Business Income (QBI) deduction, also known as the Section 199A deduction, has been made a permanent part of the tax code for sole proprietors, partnerships, and S-Corps. However, the eligibility for the QBI deduction depend on your total taxable income and the type of business you have. So, if your taxable income is below a certain threshold ($197,300 for single filers; $394,600 for MFJ), you can take the full 20% deduction without limitations as per your business type or the amount of W-2 wages and qualified property. However, if your taxable income exceeds these thresholds, limitations may apply. So, make sure your 2025 income, wages, and business deductions are accurately tracked to maximize this benefit. For expert help, reach out to a qualified tax professional today. 3. Business Interest Deduction As per US business tax changes 2026, the rules for deducting business interest are now based on EBITDA rather than EBIT. This allows more interest to be deducted for businesses with loans or financing. If your company had debt in 2025, this could reduce your tax liability and improve cash flow, especially if you are  in a capital-intensive industry. 4. 1099-K Reporting Threshold Has Changed For small businesses and e-commerce sellers, the 1099-K reporting threshold has been permanently raised to $20,000 and 200 transactions per year for third-party settlement organizations (TPSOs). This reduces unnecessary reporting burdens and lowers the risk of IRS notices caused by over-reporting smaller payments. 5. Other Retroactive Changes Affecting 2025 Returns Some provisions of OBBB would apply retroactively, too and would affect the returns you file this April: All these retroactive changes mean your 2025 books must be accurately reconciled to avoid missing deductions or triggering audits. Important April 2026 Deadlines for Businesses Deadline Filing / Payment Jan 15, 2026 Q4 2025 Estimated Taxes Jan 31, 2026 W-2, W-3, 1099 filings Mar 16, 2026 Partnership (Form 1065) & S-Corp (Form 1120-S) due Apr 15, 2026 Individual & C-Corp tax returns due; Q1 2026 Estimated Tax Payment Tip: Filing extensions give more time to submit forms, not to pay taxes. Avoid last-minute penalties by planning payments ahead. What’s New This Tax Season? According to the IRS, below are some important new provisions and tax forms taxpayers and preparers should be aware of this season: 1. New Schedule 1-A A new IRS form, Schedule 1-A, has been introduced by the IRS to help taxpayers claim the recently introduced deductions. These include: This schedule must be attached to Form 1040 to report these newly allowable adjustments. 2. Trump Account Enrolment A new provision allows parents, guardians, or authorized individuals to establish a Trump Account 3. Form 1099-K This form has been reinstated with a higher reporting threshold (permanent rule). Form 1099-K can be used by e-commerce sellers, freelancers, and gig workers to accurately report business income received from: 4. Form 1099-DA — Digital Asset Transactions Form 1099-DA is used to report proceeds from digital asset transactions from brokers and other marketplaces. If you have digital asset sales or transactions in 2025, this form may apply. Strategic Tips for This Filing Season Here are some tips that can help you stay ahead of 2026 tax changes for businesses: Reconcile 2025 Accounts Now Make sure your books are accurate and up to date, with all income, expenses, and deductions properly registered. Any overlooked item could cost you deductions or create audit issues. Gather all income documents early Collect your W-2s, 1099s, and bank statements before you start. Missing even one form can delay your return or cause IRS notices later. Check your numbers against last year Compare income, deductions, and tax paid with last year’s return. Are there major changes? Have you missed out on something or reported it twice?  Track deductions carefully Keep receipts for business expenses, medical costs, charitable donations, and education expenses. Organized records mean fewer mistakes and bigger savings. Review your filing status Life changes like marriage, divorce, or a new child can change how you should file—and how much tax you owe or save. Connect with your tax advisor for expert support. Don’t forget credits Credits for children, education, energy upgrades, and health insurance can significantly reduce your tax bill. Make sure to take benefits of all available and applicable credits. File electronically and use direct deposit E-filing reduces errors and ensures quicker refunds. Similarly, direct deposit helps you get your money quickly and more securely. Plan how you’ll pay How much taxes do you owe? Can you pay in full? If not, use IRS’s payment plan options to spread out your payments and avoid penalties. Start Now—April Waits for No One. Remember, businesses that reconcile their books on time, maximize deductions, and optimize their tax strategy can not only reduce their liability but also avoid penalties. At KnowVisory Global, we help

Maximize your 2025–26 tax savings with expert strategies for U.S. professionals. Read our blog or connect with KnowVisory Global’s tax advisors today.

Taxes are always confusing – especially for business owners and people outside a regular W-2, like freelancers and gig workers. For them, the IRS doesn’t wait until April to collect taxes. They expect self-employed people to pay taxes throughout the year – to avoid penalties and a big bill later. So, if your income isn’t automatically taxed through payroll, you’re expected to pay estimated taxes every quarter. Estimated taxes are quarterly payments that may be required when your income isn’t fully covered by withholdings. Who Must Pay Estimated Taxes? You likely need to make estimated payments if you: In short, if the IRS isn’t already deducting taxes out as you earn, then you are expected to pay your tax dues on your own — four times a year. When to Pay Estimated Taxes in 2026 For self-employed individuals, the IRS follows a “pay-as-you-go” system. These are the quarterly deadlines for the 2026 tax year: Income Period Estimated Tax Due Jan 1 – Mar 31 April 15, 2026 Apr 1 – May 31 June 15, 2026 Jun 1 – Aug 31 September 15, 2026 Sep 1 – Dec 31 January 15, 2027 If a due date falls on a weekend or holiday, it automatically moves to the next business day. Please note: You may also need to pay estimated tax for your state, which has varying deadlines from one state to another. How to Calculate Your Quarterly Estimated Taxes You can calculate your quarterly taxes by following either of the two methods: 1. Using Your Current-Year Estimates (Annualized Method) This method involves forecasting your income, deductions, credits, and tax for 2026 and paying at least 90% of what you expect to owe. Ideal for: If your income increases mid-year, adjust your future payments accordingly to avoid falling short. 2. Using Last Year’s Tax Bill (Safe Harbor Rule) A simpler method that’s based on the quarterly payments you made during the previous year. This approach works well if your income is steady or increasing. How to Make Estimated Tax Payments The IRS offers multiple payment methods: You can pay weekly, monthly, or as often as you like — as long as the correct amount is paid by each quarterly deadline. If your withholding equals at least 90% of your current-year tax or 100% of last year’s tax, you may avoid quarterly payments. Penalties for Not Paying Enough Estimated Taxes If you don’t pay enough tax throughout the year, the IRS may charge an underpayment penalty. The penalty is based on: For many taxpayers, this rate hovers around 8%, but it can change quarterly. Remember, penalties are in addition to interest owed on unpaid tax. Tips for Business Owners Paying Quarterly Taxes For small business owners, the biggest challenge is often cash flow. Here are practical ways to stay ahead: Need Help? Partner with KnowVisory Global and Stay Prepared for Tax Time Tax laws evolve each year; staying compliant needs planning and the right approach. At KnowVisory Global, we help business owners and self-employed individuals stay tax-ready year-round. Our seasoned accountants, bookkeepers and tax advisors keep your records accurate, your numbers up to date, and your business ready for every tax deadline. With professional tools and expert support, we make quarterly tax compliance easier. Partner with us and navigate your tax obligations smoothly and accurately, every quarter.

With the Tax Cuts and Jobs Act (TCJA) sunsetting at the dawn of 2025, the US tax landscape is up for a major overhaul. Many of the tax benefits introduced by TCJA in 2017 will phase out too, potentially increasing taxes for high-income and high-net-worth individuals. It marks an important turning point for the income tax code and may bring possible hikes in income and capital gains tax rates. Major Tax Changes Ahead: What HNW Individuals Must Know If TCJA’s individual provisions are not extended, possible results include: This is why 2025 is the last major planning year before rules reset. Upcoming Tax Changes: What to Look Out For Rising Income Tax & Capital Gains Exposure In 2026, high-income earners may see their tax brackets shift upward. Capital gains rules could also become stricter. There could also be an increase in taxes on investment income, equity compensation, and major asset sales. For accounting firms, this means more detailed planning. Firms will need to help clients decide when to realize gains and how to structure their income to reduce unnecessary tax exposure. Possible Wealth Tax Implementation Lawmakers are exploring newer ways to tax high-value estates and unrealized gains. While the exact form of a potential wealth tax is still unclear, global assets — including offshore trusts and foreign portfolios – may come under greater scrutiny. This makes offshore tax planning and transparent asset valuation even more essential for CPA firms. IRS’s Expanding Oversight on Global Wealth The IRS is tightening its focus on global wealth. Digital asset monitoring and stronger FATCA and FBAR enforcement are making it difficult for high-net-worth clients to hide their offshore assets. CPAs and accounting firms must brace themselves to manage both U.S. and international reporting requirements with absolute accuracy. The Impact Global Structures The upcoming changes are going to significantly impact our future investment decisions, estate strategies, and offshore holdings. Successful high-net-worth tax planning will require a holistic approach that blends U.S. and international accounting oversight. Partnering with KnowVisory Global gives US firms access to a seasoned team of experts proficient in providing IRS-compliant tax services, multi-state filings, and offshore bookkeeping support. Our CPAs and tax specialists can guide you through upcoming global tax reforms and make confident and profitable business decisions. Offshore Assets and Cross-Border Challenges HNWIs often invest and manage investments across several countries. While this offers significant growth opportunities, it also brings along many challenges, like: Complex Reporting Obligations U.S. taxpayers with offshore holdings must comply with FBAR and FATCA regulations. They must disclose all foreign accounts and assets to the IRS. Errors or omissions can lead to penalties that can reach up to 50% of the account balance per violation. Our IRS-compliant tax planning and return preparation services ensure complete FATCA and FBAR support. We help CPA firms maintain accuracy while minimizing risk. Valuation Challenges Different countries follow different valuation methods. Not following them properly can affect taxable income and invite penalties. Through outsourced accounting, we help firms reconcile offshore transactions accurately while keeping local accounting practices aligned with U.S. tax standards. Operational Issues Cross-border operations often lead to communication gaps. We use automated tools to keep your U.S. and offshore teams on the same page at all times. Data Security Global companies are at an increased risk of data theft. To stay safe, it is important to follow strong security protocols and encrypted systems. How to Prepare Yourself for the 2026 Tax Landscape Conduct a Thorough 2025 Wealth Audit Before stepping into 2026, make sure to review your client’s wealth portfolio. Carefully check all the investments, trusts as well as offshore holdings. Strengthen Global Coordination For HNWIs, it is important to coordinate between onshore and offshore assets. Partner with Specialized Outsourcing Experts Work with a trusted tax support partner to maintain both quality and compliance.Experienced teams can expertly handle your global tax obligations without increasing your overhead costs. Prioritize Tax Planning Partner with KnowVisory Global to Manage Global HNW Portfolios with Ease With over 15 years of experience in IRS-compliant tax preparation, multi-state filings, and offshore bookkeeping, we help accounting firms simplify complex reporting requirements. Our experts understand cross-border taxation inside out. They can help you eliminate operational bottlenecks and stay fully prepared for the changing 2026 tax landscape. They bring automation and structure to their workflow. Using AI-powered tax systems and secure cloud platforms, we help HNWIs achieve: The Time to Build a Future-Ready HNW Advisory Model is Now! As we inch closer to 2026, the countdown to the TCJA sunset has officially begun. This window offers CPAs and HNW individuals a rare opportunity to: The firms that stay ahead will create a significant advantage for their clients. So, act now to reduce tax errors, stay IRS compliant, and deliver unmatched value to your high-net-worth clients.

The much-awaited Bloomberg annual tax projections for 2026 are out. Like every year, this year’s tax projections also give taxpayers and CPAs an early glimpse into what 2026 tax brackets, deductions, and exemptions might hold. While the IRS will confirm the official numbers later, Bloomberg’s annual forecasts provide an essential tax planning checklist for individuals, families, and businesses who want to develop tax planning strategies to save more.  This year’s update is particularly noteworthy. Not because it brings the usual inflation-driven adjustments, but because the newly passed One Big Beautiful Bill Act of 2025 (OBBBA) has brought numerous changes that could impact everyone. And there are meaningful tax shifts that could affect how much you owe (or save) come tax season.  Here’s a breakdown of the most important updates.  1. Tax Brackets  As expected, tax brackets for 2026 are moving upward to keep pace with inflation. This means you’ll be able to earn a little more income before being bumped into the next tax rate.  Married Filing Jointly and Surviving Spouses  2025 Tax Rate  Projected Tax Brackets 2026  10% – $0 to $23,850  10% – $0 to $24,800  12% – Over $23,850 to $96,950  12% – Over $24,800 to $100,800  22% – Over $96,950 to $206,700  22% – Over $100,800 to $211,100  24% – Over $206,700 to $394,600  24% – Over $211,400 to $403,550  32% – Over $394,600 to $501,050  32% – Over $403,550 to $512,450  35% – Over $501,050 to $751,600  35% – Over $512,450 to $768,700  37% – Over $751,600  37% – Over $768,700    Single Filers (other than heads of households and surviving spouses)  2025 Tax Bracket  Projected Tax Brackets for 2026  10% – $0 to $11,925  10% – $0 to $12,400  12% – Over $11,925 to $48,475  12% – Over $12,4000 to $50,400  22% – Over $48,475 to $103,350  22% – Over $50,400 to $105,700  24% – Over $103,350 to $197,300  24% – Over $105,700 to $201,775  32% – Over $197,300 to $250,525  32% – Over $201,775 to $256,225  35% – Over $250,525 to $626,350  35% – Over $256,225 to $640,600  37% – Over $626,350  37% – Over $640,600  Every bracket sees a modest upward adjustment to keep up with the consumer price index increase reported by the Bureau of Labor Statistics.  2. Standard Deductions The standard deductions are expected to bring more breathing space in the room. Used by most taxpayers (in place of itemized deductions), standard deductions are also predicted to rise.  Filing Status  2025    Projected 2026 Tax Bracket  Married filing jointly/surviving spouses  $30,000  $32,200  Heads of household  $22,500  $24,175  All other taxpayers  $15,000  $16,100  This increase means more income will be shielded from taxation before rates even apply. For families, this could lead to meaningful savings during tax filing.  3. Alternative Minimum Tax (AMT) Exemptions Bloomberg’s report also projects changes to the AMT – a parallel tax system designed to ensure higher-income earners pay at least some tax after deductions:  Filing status  2025  AMT Exemption Amount  AMT Exemption Amount Projected for 2026    Married filing jointly/surviving spouses  $137,000  $140,200  Unmarried individuals  (other than surviving spouses)  $88,100  $90,100  Married filing separately  $68,500  $70,100  Estates and trusts  $30,700  $31,400  4. Kiddie Tax (Unearned Income of Children)  If your child has investment income, the Kiddie Tax rules apply.  The first $1,350 of a child’s unearned income isn’t taxed.  If their income is between $1,350 and $13,500, parents may elect to include it on their own return.  Rule  Amount (2026)  Tax-free unearned income  $1,350  Parental election possible  $1,350 – $13,500  5. Qualified Business Income Deduction (QBID)   The QBID deduction (§199A) is also being adjusted for inflation in 2026.  Filing Status  Threshold  Phase-In Limit  Married Filing Jointly  $403,500  $553,500  Married Filing Separately  $201,775  $276,775  All Other Taxpayers  $201,750  $276,750  Additional details: The minimum deduction for tax years in 2026 under §199A(i)(1)(B) is $400.  To qualify, total business income must be at least $1,000.  6. Qualified Retirement Contributions (§219)  Retirement tax planning strategies may also get a small boost in 2026. The IRS limits how much you can deduct for contributions to IRAs and certain qualified retirement accounts, and those limits are adjusted for inflation.  Contribution Limits:  Individuals under age 50 can deduct up to $7,500.  Individuals 50 and older can deduct an extra $1,100 (catch-up), for a total of $8,600.  Phaseout Limits for Tax Planning for Families: If you or your spouse are covered by a workplace retirement plan, the amount you can deduct may be reduced (phased out) once your income passes certain levels. For 2026, here are the new limits:  Filing Status  2026 Limit  Married Filing Jointly  $129,000  All Other Taxpayers  $81,000  Married Filing Separately  $0  Non-active participant spouse  $242,000  7. Individual Retirement Accounts (§408)  According to the Bloomberg report, individual retirement accounts are also seeing adjustments in 2026, especially around charitable distributions, SIMPLE IRAs, and Roth IRA eligibility.  1. Qualified Charitable Distributions (QCDs):  Up to $111,000 of IRA is excluded from distributions donated directly to charity from your taxable income.  For a split-interest election (like giving through a charitable remainder trust), the maximum is $55,000.  2. SIMPLE IRAs (for small businesses): To participate, employees must earn at least $5,300 in compensation.  Employer nonelective contributions cannot exceed $5,300 per employee for the year.  3. Roth IRA Contribution Limits: Your eligibility to contribute to a Roth IRA depends on your income. For 2026, here are the new phaseout ranges:  Filing Status  Phaseout Starts  Phaseout Ends  Married Filing Jointly  $242,000  $252,000  Single / Head of Household  $153,000  $168,000  Married Filing Separately  $0  $10,000  8. Business Accounting Update: Cash Method  For 2026, corporations and partnerships can use the cash method of accounting if their average annual gross receipts for the last 3 years are under $32 million. This higher threshold makes it easier for more businesses to avoid the complexity of accrual accounting.  9. Foreign Earned Income Exclusion (§911)  For U.S. taxpayers living and working abroad, the foreign earned income exclusion is expected to rise to $132,900.  This means qualifying taxpayers can exclude up to $132,900

In a historic move, President Donald Trump, on July 4, 2025, signed the One Big Beautiful Bill Act (OBBB or OBBBA) into law. Labeled as one of the most ambitious policy overhauls in modern U.S. history, the Act, officially titled Public Law 119-21, redefines the nation’s tax and spending policies. While the OBBBA contains hundreds of provisions and covers a broad legislative landscape that ranges from tax simplification to federal spending caps, its real weight lies in the promises it makes for individual and small business tax filing across America. Let’s take a closer look at what this means and how it’s set to change tax preparation services for American households, small businesses, and individual taxpayers. Whether you’re working through a small business tax checklist or getting ready for year-end filing, understanding these updates is key to maximizing your deductions and staying compliant. What Is the One Big Beautiful Bill Act? The OBBB is a comprehensive legislative package that contains over 1,000 pages of tax policy updates, fiscal reforms, government restructuring mandates, and regulatory rollbacks. It consolidates a number of standalone reforms into one sweeping law, simplifying annual tax planning and preparation services for most US citizens. This “one-bill-fixes-all” approach seeks to eliminate bureaucratic overlaps, reduce red tape, and create a leaner federal system that ensures seamless tax planning and compliance. Major Tax Changes The OBBB brings several noticeable changes for individual taxpayers. These include: Extension of TCJA Tax Cuts: Many tax cuts introduced in 2017 are now permanent. Increase in Standard Tax Deduction: $15,750 for single filers and $31,500 for married filers), indexed for inflation.  No Tax on Tips and Overtime Pay: Qualified tips up to $25,000 and all eligible overtime pay (capped at $12,500 for single and $25,000 for joint) are exempt from federal income tax. Applies 2025-2028. Auto Loan Deduction on Interest: Up to $10,000/year deduction available for car loans on U.S.-manufactured vehicles, purchased after 2024. Child Tax Credit: Raised to $2,200 per child, indexed for inflation starting 2026. Senior Citizen Relief: $6,000 increase in the standard deduction for taxpayers aged 65 and above. “Trump Accounts”: New tax-advantaged accounts, “Trump Accounts”, introduced for children under age 8. The details are limited, but the plan is designed for long-term savings.  Estate and Gift Tax: Exemptions increased to $15 million and $30 million for single and joint filers, respectively.  Key Provisions for Small Business Tax Filing The law is touted as a game-changer for small and medium-sized enterprises (SMEs) across the U.S. It offers: 100% Bonus Depreciation and Expensing for Real Property: Businesses can now fully deduct certain real estate costs, including commercial properties, right away. This helps recover expenses faster and improves cash flow. Permanent 20% QBI Deduction (Section 199A): The 20% tax break for income from sole proprietorships, partnerships, and S corporations is now permanent. A minimum deduction is available for businesses earning at least $1,000 in qualified income. Higher Section 179 Expensing Limit: The maximum small business tax filing deduction for equipment and small asset purchases has been increased to $2.5 million. Temporary SALT Cap Increase: From 2025 to 2029, taxpayers earning under $500,000 get up to $40,000 in deduction in state and local taxes. Pass-Through Entity Tax (PTET): Pass-through businesses can still pay state taxes at the entity level, helping owners reduce their federal taxable income. Charitable Deductions: Even if you don’t itemize deductions, you can now deduct certain charitable contributions – up to $1,000 for single filers and $2,000 for married taxpayers filing jointly. Tax Credits Phasing Out Under the One Big Beautiful Bill Act While the OBBBA introduces multiple benefits for personal and small business tax filing, it also ends several popular tax incentives. Many clean energy credits are poised to expire soon. Residential Clean Energy Credit (Sec. 25D): The 30% credit for solar, wind, geothermal systems, and battery storage ends after December 31, 2025. No credits will be provided for systems installed in 2026 or later. Energy-Efficient Home Improvement Credit (Sec. 25C): The 30% credit for HVAC system upgrades also ends after December 31, 2025. New Energy Efficient Home Credit (Sec. 45L): Builders can no longer claim this credit for homes acquired after June 30, 2026. Investment Tax Credit for Solar & Wind (Sec. 48E): The 30% commercial solar and wind credit ends December 31, 2027, unless construction begins before July 4, 2026, and the project is completed by the end of 2027. EV & Charging Station Credits (Secs. 30D, 25E, 30C): Credits for new and used electric vehicles expire after September 30, 2025. The credit for EV charging equipment ends after June 30, 2026. Accelerated Depreciation for Energy Property (Sec. 168): The 5-year accelerated recovery period is eliminated for energy projects starting after December 31, 2024. Only 100% bonus depreciation is available for property bought before January 19, 2025. How to Adapt to the Changing Federal Landscape For businesses and individuals, it’s critical to understand the benefits and the associated risks of the new law. Work with an experienced CPA for professional tax support. They can help you optimize your tax savings and prepare a solid small business tax checklist that maximizes your deductions under the new law. Need help understanding how the OBBB Act affects your business or household? Contact our tax experts for a personalized consultation today.

Considering a tax extension to get more time? Maybe you’ve heard from a friend or colleague that they filed for an extension and are wondering if it’s the right choice for you. Spoiler Alert: A tax extension does not give you extra time to pay your taxes. Neither it allows you to get a waiver for penalties or interest on late payments nor it buys you more time to contribute to the Retirement plans. It only extends the deadline for submitting your return. You’ll still need to pay any taxes owed by the original due date to avoid penalties and interest. A tax extension allows you to postpone filing your tax return by six months. For 2025, submitting an extension by April 15 moves your filing deadline to October 15. To request an extension, you must file Form 4868  with the IRS, either online or by mail. (Image Credit: IRS)   But does it really serve the purpose? Let’s find out. When to Apply for Tax Extensions Filing a tax extension can be helpful in certain situations. Here are some common reasons why you may consider it: Missing Important Documents: If you haven’t received all your tax forms, like W-2s, 1099s, or investment statements, an extension gives you time to gather them and avoid filing an incomplete return. Complex Financial Situations: If you have multiple income sources, investments, or business expenses that take time to calculate, an extension can help you file a more precise return. Unexpected Life Events: Major changes like illness, family emergencies, or moving can make it hard to file on time. An extension gives you breathing room. Self-Employed or Small Business Owners: If you own a business, you may need additional time to ensure all deductions, expenses, and financial reports are in order before submitting your return. Avoiding Errors and Penalties: Rushing through your tax return can lead to errors, audits, or missing out on deductions. More time means better accuracy. Affected by a Natural Disaster: If you’ve been impacted by a natural disaster – hurricane, wildfire, flood, or other emergency – the IRS often grants emergency relief and additional time to file. Living Abroad and Waiting for Foreign Tax Info: If you’re an American living overseas, the IRS grants an automatic two-month extension to file until June 16, 2025. Expats waiting for foreign tax documents can also file for an extension to get all their paperwork in order. The April 14” Syndrome: Forgot about the tax deadline? An extension gives you more time to file correctly. Expats with Foreign Income and Tax Credits: For expats having foreign income or tax credits, an extension gives them more time to sort out their complicated tax situation. Newly Married or Divorced Taxpayers: Sorting out your filing status can get tricky when undergoing a life-changing situation. An extension gives you time to figure it out confidently. Investors Waiting for K-1s: Still waiting on late-arriving K-1 forms from partnerships, hedge funds, or REITs? No need to rush—an extension lets you file once all the paperwork’s in How to Apply for a Tax Extension and Who Can Do That All or any taxpayer can apply for an extension. You just need to follow the following steps: Estimate – You must properly estimate the tax liability that you owe for the tax year. Report – You must report the amount of tax you owe—and it’s recommended that you pay it—to avoid interest and penalties. Apply – You must submit Form 4868 and apply for the extension by the regular April 15 due date. You can complete and file this form electronically through tax software or mail a paper form. The process of extension is relatively simpler, but the underlying apprehension remains: Should you apply for an extension, or should you not? Maybe you should look at the pros and cons that we have enlisted for you below before you make a decision. 1. More Time to File Your Tax One of the primary advantages is the additional time you get to gather necessary documents and ensure accuracy. Rushing through tax preparation can lead to mistakes that may result in costly penalties or missed deductions. By opting for an extension, you are empowering yourself to take a meticulous approach to your finances. On the flip side, you get more time to worry about filing taxes and that may not be a pleasant situation. 2. Extended Opportunity for Deductions If you’re self-employed or a business owner, an extension can help you maximize deductions by giving you time to make contributions that reduce taxable income. But remember, your tax payment is still due on April 15. 3. You Get More Time to Seek a Refund Later There are two sides to look at this aspect of seeking refunds. If you have made a mistake and are seeking refunds for this term, you can do so when you‘ve filed for an October extension. But on the contrary, if you have pending refunds from the last term, this refund might get delayed. 4. You Save on Tax Preparation Fee Tax professionals charge higher fees during peak tax season (around April). Filing later can save you money on preparation costs. However, if you owe taxes, the IRS may charge interest on unpaid balances. 5. Legal Right to an Extension The government has recognized the challenges associated with meeting deadlines sometimes, in some cases. Hence the provision for extensions on tax filing. Moreover, there are no extra charges for filing tax extensions. 6. Complex Tax Laws Tax laws are more complex than ever, with a plethora of intricate tax rules in comparison to just 10+ years ago. Navigating this labyrinthine system can be overwhelming, and rushing to file your return could lead to costly mistakes. By opting for an extension, you gain valuable time to meticulously review your financial records and assess your eligibility for all available deductions and tax credits. This careful consideration can make a significant difference in your overall tax liability. Common FAQs Related to Tax

Struggling with Taxes? You’re Not Alone For many business owners, taxes are a major pain point. With constantly evolving tax laws, even experienced entrepreneurs tend to overlook deductions, miss deadlines, or make filing errors, which leads to overpayments, IRS penalties, and stress. A Certified Public Accountant (CPA) can help you overcome the complexities of tax laws. As certified professionals, they work with you to maximize your deductions, minimize errors, and ensure full compliance with tax laws – so you can stay prepared when the taxman comes knocking on your door. Why Do Businesses Need a CPA?   1. To Understand and Interpret Tax Laws Tax regulations are constantly changing. It is difficult for businesses to stay updated with all the evolving tax laws. As certified professionals, CPAs can help you understand state, federal, and international tax obligations clearly and minimize the risk of non-compliance. 2. For Strategic Tax Planning Certified Public Accountants do more than just file taxes. They develop customized tax strategies and help businesses meet their financial goals easily. From identifying deductions to utilizing credits and incentives, they help you use all the tax credits and benefits available to you to legally reduce your taxable income. 3. To Understand Business Structure and Its Tax Implications The legal structure of your business – LLC, S-Corp, C-Corp, Partnership, or Sole Proprietorship – significantly affects your annual tax duties. CPAs help businesses choose or restructure their entity type to minimize tax burdens and enhance financial efficiency. 4. For Audit Representation and IRS Liaison If a business is audited by the IRS or state tax authorities, having a Certified Accountant as a representative can be invaluable. They handle communications, provide documentation, and ensure compliance so that the business can traverse IRS audits confidently. 5. For Cash Flow and Financial Planning These professionals help businesses maintain healthy cash flow. They assist them in managing expenses and forecasting future tax obligations. This proactive approach allows businesses to plan for growth, investments, and potential tax liabilities well in advance. 6. To Stay Payroll and Sales Tax Compliant Beyond income taxes, businesses must meet payroll tax, sales tax, and industry-specific tax requirements. Chartered accountants manage calculations, filings, and reporting so that business owners can focus on growing their business. When to Hire a Certified Public Accountant? Hiring a Certified Public Accountant is extremely advisable: 1. When Starting a Business If you’re starting a new business, a certified accountant can help you choose the right business structure (LLC, S-Corp, C-Corp, Partnership) based on your tax implications and long-term goals. They also ensure you have the correct financial systems in place from day one. 2. During Tax Season Tax regulations are complex and ever-changing. A CPA ensures accurate tax filing with maximum deductions and minimum errors. So, if your tax situation has grown beyond basic returns, a state-licensed accountant can provide strategic tax planning services to minimize liabilities. 3. When Your Business is Growing Scaling a business means managing higher revenues, complex payrolls, and increased expenses. A CPA can optimize your financial planning for efficient budgeting and hassle-free cash flow management. 4. If You’re Facing an IRS Audit or Tax Issues If your business receives an IRS audit notice, having a CPA represent you ensures a smooth process. CPAs act as liaisons with tax authorities and help you navigate legal and regulatory challenges with ease. 5. When Seeking Business Loans or Investments Banks and investors require accurate financial statements, projections, and tax records before approving loans or funding. A CPA ensures your financial reports are in order, increasing the likelihood of securing financing. 6. If You’re Expanding or Entering New Markets Whether you’re expanding operations, hiring more employees, or going international, a chartered accountant can ensure compliance with tax laws across different states or countries and develop financial strategies to support your growth. 7. For Long-Term Financial Planning & Wealth Management As your trusted advisor, he/she can help you with retirement planning. They can devise profit reinvestment strategies for you to preserve your wealth. Pro Tip: If you’re following a simple business structure, you can use one of the best accounting software to manage your records. However, make sure have the skills and knowledge to manage your company’s finances and taxes. Choosing the Right CPA for Your Taxes Selecting the right Certified Public Accountant is a cautious business decision. Remember, not all certified accountants are alike. While some specialize in business tax strategy, others focus on personal tax filings, audits, or industry-specific financial planning. To ensure you hire the best professional for your business: Assess Your Tax Needs: Before selecting a CPA, determine whether you need help with Business tax planning, personal tax planning and preparation, or IRS audit representation. Then choose a professional with relevant experience. Verify Credentials: A legitimate accountant should be state-certified and, ideally, a member of the AICPA (American Institute of Certified Public Accountants). Always check the licensing status of your accountant through your state’s Board of Accountancy or AICPA directory. Evaluate Experience & Industry Expertise: Tax laws vary by industry. Find a CPA who understands your sector’s financial challenges. Understand Their Tax Strategy & Approach: Ask potential chartered accountants how they approach tax planning and whether they offer year-round consulting or just seasonal tax prep help. Consider Technology & Security Measures: Make data security a priority. A reliable CPA should offer secure online portals and use trusted accounting tools like QuickBooks, Xero, or NetSuite for streamlined reporting. Compare Fees & Service Agreements: CPA fees vary based on the complexity of your tax situation and the services you wish to avail. Request a clear fee structure upfront to stay within budget. Read Reviews & Ask for Referrals: Client feedback is invaluable. Look for testimonials and Google and Yelp reviews to ensure the professional you are planning to hire has a good reputation and tax expertise and will deliver quality services to your needs. It’s Time to Take Control of Your Finances If you’re a startup, a growing company, or an established business looking for strategic