The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, amended certain depreciation deductions for business taxpayers, making permanent a 100% bonus first-year depreciation for qualified property placed in service after January 19, 2025. Bonus depreciation allows eligible business property to be fully expensed in the year it is placed in service rather than depreciated over its normal recovery period.
The IRS has released proposed regulations that clarify how certain taxpayers may deduct interest paid on passenger vehicle loans, along with new reporting requirements for lenders. This guidance affects individuals who purchase vehicles for personal use between 2025 and 2028 and may be eligible for a temporary tax deduction of up to $10,000. Here’s what you need to know and how it may apply to your tax situation.
In late December, the IRS announced the new optional standard mileage starts that will be in effect starting January 1, 2026. The rates are used to calculate the deductible costs of operating a vehicle for business, charitable, medical, or moving purposes.
Charitable contributions will be treated differently on federal tax returns beginning next year. New provisions in the One Big Beautiful Bill Act (OBBBA) change how donations reduce taxable income for both standard deduction filers and taxpayers who itemize. While the changes do not affect whether a gift can be made to a qualified charity, they do affect if and how much of that gift produces a tax benefit. Since the new rules take effect January 1, 2026, taxpayers who regularly give to charitable organizations may want to review how the rules differ between 2025 and 2026 before making decisions.
In mid-November 2025, Pennsylvania Governor Josh Shapiro signed the $50.1 billion state budget, which prioritizes tax relief for working families, expanded school funding, and strengthening of the workforce. One new item introduced is an earned income tax credit that will provide over $193 million in tax relief for working families in Pennsylvania.
The IRS released Notice 2025-62 to give employers and payroll providers more time to adjust to certain reporting requirements created by the One Big Beautiful Bill Act (OBBBA). The law introduced two new deductions for employees who receive tips or overtime pay beginning in 2025, and those deductions were expected to rely on new data fields on Forms W-2 and 1099. Those fields have not yet been finalized, and many payroll and point-of-sale systems are not equipped to capture the information. The IRS is treating 2025 as a transition year and will not enforce the new reporting elements until 2026.
In mid-November 2025, Pennsylvania Governor Josh Shapiro signed the $50.1 billion state budget, which prioritizes tax relief for working families, expanded school funding, and strengthening of the workforce. One new item introduced is an earned income tax credit that will provide over $193 million in tax relief for working families in Pennsylvania.
In November 2025, the IRS announced that interest rates will remain the same for the first quarter of 2026, which begins January 1, 2026.
Organizations that receive federal funding are held to a high standard of accountability. To meet this standard, many must undergo what is known as a Single Audit. The requirement was introduced several decades ago to replace several program-specific audits with one comprehensive review. Since then, the rules have changed, including periodic increases to the dollar threshold that determines who must have the audit.
As previously reported, President Trump signed Executive Order 14247 on March 25, 2025, which would change how the federal government handles payments by phasing out paper options (such as checks and money orders) and mandating electronic options as much as possible. On September 23, 2025, the IRS and US Treasury announced that tax refund checks for individual taxpayers will be phased out starting on September 30, 2025, to the extent allowable by law.
