Tax Relief for Teachers: Deduction Rises to $350 in 2026

Teachers and other educators should be glad to know that the above-the-line tax deduction they can claim for unreimbursed educator expenses will soon rise. Currently $300 per year, in 2026 the maximum deduction will increase to $350. It will be adjusted for inflation in the future. Married educators who file a joint return can each […]

Enhanced Child Care Tax Credits Offer Big Benefits for Employers in 2025–2026

Employers seeking ways to attract and retain top talent may want to consider providing child care services to staff. A significantly enhanced tax credit can make this more feasible. For 2025, the maximum credit is $150,000. For 2026, it will increase to $500,000 ($600,000 for eligible small businesses). The 2026 credit will equal 40% of […]

New 2026 Health Benefit Limits Released by the IRS

Employers and employees, take note: The IRS has released 2026 inflation-adjusted limits for employee health benefits. Workers who defer earnings to health Flexible Spending Accounts (FSAs) can contribute as much as $3,400 in 2026 (up from $3,300 in 2025). And for FSAs that allow carryovers of unused amounts, the 2026 carryover maximum will be $680 […]

AICPA Urges IRS to Maintain Full Operations During Government Shutdown

The American Institute of Certified Public Accountants (AICPA) has asked the IRS to retain full staffing during the current government shutdown. However, the IRS has furloughed approximately half of its workers. In an Oct. 9, 2025, letter to the U.S. Treasury Secretary, the AICPA recalled the negative effects of past shutdowns, including the issuance of […]

IRS Releases 2026 Inflation-Adjusted Tax Brackets and Deductions

The IRS has announced its annual inflation-adjusted income tax brackets and other amounts. For 2026, the highest rate (37%) will apply to taxable income over $640,600 for individuals ($768,700 for married filing jointly and $384,350 for married filing separately). The standard deduction is increasing to $16,100 for individuals and married taxpayers filing separately ($32,200 for […]

Payroll Tax Mistakes Can Be Costly — Even Criminal

Employers who’re responsible for collecting payroll tax and remitting it to the IRS can face a penalty equal to 100% of the unpaid amount if they willfully fail to do so. The Trust Fund Recovery Penalty (TFRP) can be assessed personally against those deemed to be “responsible.” In one case, the owners of four staffing […]

Year-End Gifting: Know the 2025–2026 Gift Tax Limits

As the year winds down, you may be hoping to combine smart estate tax planning with tax savings using the annual gift tax exclusion. For 2025 and 2026, this exclusion is $19,000, which you may give in cash or property to any number of family members or friends, without gift tax implications. Married couples may […]

Holiday Gifts & Taxes: What Employers Need to Know

The holidays are a time for gratitude, and when they arrive, many employers are planning to show appreciation by giving gifts to their staff. Different types of gifts can have different tax consequences. So whether it’s a gift card, a holiday turkey or a year-end bonus, it’s important to know how the IRS will treat […]

Bisignano takes over day-to-day operations of the IRS

Ever since Billy Long was removed as IRS Commissioner in August 2025, U.S. Treasury Secretary Scott Bessent has served as Acting IRS Commissioner. But recently, the Treasury Dept. announced that Frank Bisignano, current Commissioner of the Social Security Administration (SSA), will take over day-to-day operations as the IRS’s CEO. Bisignano will execute this newly created […]

Remittance transfer providers receive relief

The IRS is providing penalty relief during the first three quarters of 2026 for banks and money transfer companies (so called “remittance transfer providers”) that fail to deposit a new 1% federal remittance transfer tax on international money transfers. Beginning Jan. 1, 2026, remittance transfer providers are required to collect the remittance transfer tax from […]