Hope you enjoying your summer. Its fading fast! Here are some updates in no particular order that could impact your finances or compliance with IRS or PA. Plus some tax healthy tips.

* - Charitable giving deduction for 2026. As part of the Big Beautiful Bill, married taxpayers can get $2,000 Federal deduction for cash charitable gifts without itemizing. Singler filers get a $1,000 deduction for cash gifts to charity. Non-cash gifts to Goodwill, etc. do not count. If you are a charitable giver keep track of your giving. If you are not, there are lots of good charities doing really good work who could use your dollars! Don't miss out on this easy deduction.

*- New deduction for Educators. In addition to the already existing above the line deduction that increases to $350 in 2026 for classroom supplies, for classroom expenses which exceed the $350 you can itemize it as a deduction if you itemize vs. taking the Standard. If you are an Educator keep track of your out of pocket spending. The definition of educator is broader for the itemized deduction to include interscholastic sports administrators and coaches.

*- Trump account - is you elected to open Trump account be sure to download the app on your phone where you can manage it. Be sure the $1,000 was credited to your child born after 1/1/25. If you have a child born after 12/31/2025, I suggest you set up your own Trump Account online or via the App. You will get investment choices and be able to customize the account for you. Be sure to make an investment choice. When thinking Trump accounts think future IRA for your child. Its not best vehicle for college savings.

*- Withholding check up - inspect your most recent paystub to make sure your tax withholding is correct. Especially if you have started a new job. If its below 10% of your Federal taxable wages there might be a problem. There are tons of exceptions to that rule. Compare to your W2 from last year to see the % of withholding to Federal wages.

*- If you own or have registered for a LLC, be sure to visit file.dos.pa.gov by 9/15 to file your annual report (easy, just answer a few questions) and pay the annual fee of $7.

*- If you receive tips and you are self employed be sure you a tracking them! You can deduct the tips as long as you report them as income. For employees, your tips will be reported on your W2.

*- If you work overtime, check your paystub that the overtimes hours you worked are showing up on your paystub. This year employers will be required to report overtime on your W2 so you can get the deduction if your line of work qualifies for it.

*- Assess your contributions to retirement and Health Savings Account (HSA) if you have access to one. Review your personal budget and cash flow then determine if you can contribute more towards your 401K or IRA. Be sure to be maximizing the Company match. Also review how much you are putting toward HSA and if your cash flows allows maximize that contribution. Remember, HSA's are not use it or lose it. You can carry forward HSA dollars for years all the while growing tax free.

*- Starting with 2026, charitable contributions will lose some of there value for itemizers. There is a floor of 0.5% of AGI before charitable contributions can be deducted. For example, If your AGI is $200,000, that means the first $1,000 of your charity gifts will not be deductible.

*- most clean energy tax credits have been eliminated. Items I have been asking you about for years no longer apply (e.g., windows, doors, HVAC, Solar, electric cars, etc.).

* - if you have child or grandchild you would like to put some dollars toward college savings, the 529 Account is your vehicle (Trump accounts are for retirement). You get a state tax deduction for each dollar put towards a 529 account.

* - if you are a business owner, bonus depreciation and Section 179 limits are higher. If you are contemplating an expansion or capital outlay check in with me about depreciation impact.

* - If you are above the Roth IRA contribution limits, (around $240,000 for married, $150,000 for single), consider a Backdoor Roth. Work with a financial advisor on this but its a great way to get money into a Roth and get around the income limits. A good candidate is if you do not have any other Traditional IRAs.

*- IRS Online accounts keep getting better and more useful. To assist in dealing with the IRS and to retrieve information it would be wise to set up an account now so you have it in a time of need. Sign up at IRS.gov.

*- IRS has also expanded the functionality of its Business Tax Accounts. If you have a business and run payroll, having a Business Tax Account would be helpful. Sign up at IRS.gov.

* - Starting in 2026, only 90% of your gambling losses are deductible as an Itemized deduction. Remember you claim 100% of your winnings as income but itemize the losses. This change makes the tax hit worse for sure.

* - In 2026 the reporting threshold for both Form 1099-NEC and Form 1099-MISC from $600 to $2,000. In addition, the $2,000 amount will be adjusted annually for inflation after 2026.

Form 1099-NEC is used to report compensation paid to a non-employee (such as a freelancer). Form 1099-MISC is used to report payments of rent, royalties, prizes and awards, and other items. Both the IRS and the person who receives the compensation or payment get a copy of the form.

Note that just because you do not receive a 1099 doesnt mean you should not report the income.

There are other updates but these impact the most I'd say. Should you have questions about the taxable impact of a transaction you are considering feel free to call me to discuss. Thank you!