🔔 IRS Updates: What Changes in Taxes Starting 2026

New Year — New Tax Rules! As 2025 draws to a close, we are sharing important changes that will come into effect starting in 2026:

🆕 New Form Schedule 1-A

The IRS is introducing a new form that standardizes the use of new tax deductions announced under the OBBBA. It is filed with your tax return and includes deductions for tips, auto loan interest, and retirement benefits.

📈 Foreign Earned Income Exclusion (FEIE)

The limit for excluding income earned abroad will increase to $132,900 in 2026. This amount of foreign income is excluded from taxable income on your return.

🏛 Changes in Estate and Gift Taxation

Starting in 2026, the estate tax exemption amount will rise to $15 million per person. This significantly reduces the tax burden for owners of substantial assets when gifting and simplifies estate planning.

🎁 Charitable Donations: What Changes Await You?

• Beginning in 2026, if you take the standard deduction, you will be able to deduct up to $1,000/$2,000 (depending on filing status) in charitable donations on your return—something that was not previously allowed.

• For those using itemized deductions, donations will now be deductible only for the portion exceeding 0.5% of your income (AGI). Additional limitations will be introduced for high-income taxpayers who reach the 37% tax bracket.

🎄 2026 brings both new opportunities and new limitations. We are happy to support you in the most challenging tax situations, both in the closing year of 2025 and in 2026.

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