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.
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.
In August 2025, the IRS announced that interest rates will remain the same for the fourth quarter of 2025, which begins October 1, 2025.
The State of New Jersey’s Affordable New Jersey Communities for Homeowners and Renters (ANCHOR) property tax relief program officially opened for 2025 in August. On August 13, the state’s Treasury Department started sending notification letters to New Jersey taxpayers, confirming their eligibility and informing them that their ANCHOR applications will be filed automatically by the state, beginning September 15, 2025. This year’s ANCHOR benefits are based on the taxpayer’s residency, income, and age from tax year 2024.
By ISHAAN ANAND
On July 4th, 2025, President Trump signed The One Big Beautiful Bill (OBBB) into law, which passed Congress through the reconciliation process. The legislation includes several tax changes and updates that build upon the Tax Cuts and Jobs Act of 2017, which was passed in Trump’s first term. The major updates include changes to the R&D Tax Credit, expansion of the Section 199a deduction, return of 100% bonus depreciation, increase in the SALT Cap, permanent extension of the New Markets Tax Credit, and much more.
New Jersey’s state-sponsored retirement program, RetireReady NJ, is on the verge of expanding. Originally required for businesses with 25 or more employees, new legislation moving through the state government would lower that threshold to just one. If enacted, nearly every private-sector employer in New Jersey without a retirement plan would be responsible for registering with the state or certifying an exemption.
