New This Year… In tax year 2026, taxpayers using the standard deduction can take an adjustment to income for cash donations to qualified charities. The limit is $1,000 for single filers and $2,000 for married couples filing jointly.
Working Families Tax Cuts
“No Tax on Tips”
New deduction: For tax years 2025–2028, employees and self-employed individuals may deduct qualified tips received in IRS-designated tip-based occupations, as long as the tips are properly reported on a W-2, 1099, statement provided to the individual, or reported directly on Form 4137.
Tax Documentation: For tax year 2025 we will need your Year End Pay Stub and any other statement provided by your employer or payroll provider.
For tax year 2026 this information will be reported on your Form W-2, Box 12 coded TP.
“No Tax on Overtime”
New deduction: For tax years 2025–2028, employees may be able to deduct qualified overtime pay. This includes the portion of overtime that exceeds an employee’s regular rate of pay (such as the “half” in time-and-a-half), as required under federal labor law and reported on a Form W-2 or other approved statement.
Tax Documentation: For tax year 2025 we will need your Year End Pay Stub and any other statement provided by your employer or payroll provider.
For tax year 2026 this information will be reported on your Form W-2, Box 12 coded TT.
“No Tax on Car Interest”
New deduction: For tax years 2025 through 2028, individuals may deduct interest paid on a loan used to purchase a qualified personal use vehicle, and meets other eligibility criteria. (Lease payments do not qualify.)
Tax Documentation: Lender’s Annual Interest Statement, Loan Agreement, and Purchase Documents.
For tax year 2026 this information will be reported on Form 1098-VLI.
“Deduction for Seniors”
New deduction: For tax years 2025 through 2028, individuals who are age 65 and older may claim an additional deduction of $6,000 per person.
Working Families Tax Cuts
“No Tax on Tips”
New deduction: For tax years 2025–2028, employees and self-employed individuals may deduct qualified tips received in IRS-designated tip-based occupations, as long as the tips are properly reported on a W-2, 1099, statement provided to the individual, or reported directly on Form 4137.
Tax Documentation: For tax year 2025 we will need your Year End Pay Stub and any other statement provided by your employer or payroll provider.
For tax year 2026 this information will be reported on your Form W-2, Box 12 coded TP.
“No Tax on Overtime”
New deduction: For tax years 2025–2028, employees may be able to deduct qualified overtime pay. This includes the portion of overtime that exceeds an employee’s regular rate of pay (such as the “half” in time-and-a-half), as required under federal labor law and reported on a Form W-2 or other approved statement.
Tax Documentation: For tax year 2025 we will need your Year End Pay Stub and any other statement provided by your employer or payroll provider.
For tax year 2026 this information will be reported on your Form W-2, Box 12 coded TT.
“No Tax on Car Interest”
New deduction: For tax years 2025 through 2028, individuals may deduct interest paid on a loan used to purchase a qualified personal use vehicle, and meets other eligibility criteria. (Lease payments do not qualify.)
Tax Documentation: Lender’s Annual Interest Statement, Loan Agreement, and Purchase Documents.
For tax year 2026 this information will be reported on Form 1098-VLI.
“Deduction for Seniors”
New deduction: For tax years 2025 through 2028, individuals who are age 65 and older may claim an additional deduction of $6,000 per person.
“New Trump Accounts for Eligible Children”
Parents, guardians and other authorized individuals will be able to open Trump Accounts, a new type of individual retirement savings account for children under 18 who are U.S. citizens with a valid Social Security number. The account includes a one-time pilot program contribution of $1,000 for eligible children born between Jan. 1, 2025, and Dec. 31, 2028.
Parents, guardians and other authorized individuals will be able to open Trump Accounts, a new type of individual retirement savings account for children under 18 who are U.S. citizens with a valid Social Security number. The account includes a one-time pilot program contribution of $1,000 for eligible children born between Jan. 1, 2025, and Dec. 31, 2028.
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