The school year may be ending, but eligible educators and teachers should be aware that they could be eligible for a deduction for certain out of pocket expenses paid for their classrooms throughout the year.  Many teachers use their own money to buy supplies and are not reimbursed for it.  For 2026, eligible educators and teachers may be able to claim an above-the-line deduction in computing their adjusted gross income (AGI) for qualifying expenses.

In early May, the IRS issued final regulations surrounding the qualified tips deduction enacted as part of the One Big Beautiful Bill Act (OBBBA).  These rules clarify which occupations “customarily and regularly” receive tips and which tips qualify for the deduction.  The regulations apply to tax years beginning after December 31, 2024 with an effective date of June 12, 2026.

For the past several years, most donors have received little to no federal tax benefit for giving to charity. Taxpayers who claimed the standard deduction could not deduct traditional charitable contributions. To receive a tax benefit, a donor had to itemize on the return. Beginning in 2026, that changes. The One Big Beautiful Bill Act (OBBBA) creates a permanent universal charitable deduction for taxpayers who take the standard deduction, which today applies to roughly 86% of filers. For nonprofit organizations, this provides federal incentive to a larger group of potential donors.

Now is a great time to review your finances and plan for 2026 taxes.  Taxpayers have opportunities to take advantage of beneficial deductions which can reduce their federal tax liability. Some popular strategies include contributions to certain retirement plans, contributions to health savings accounts (HSAs), and student loan interest deductions.

The IRS has announced that the 1.3 million taxpayers who have unclaimed tax refunds for tax year 2022 have until April 15, 2026 to submit their returns.  It is estimated that more than $1.2 billion in refunds is as yet unclaimed, with a median refund of $686.

The One Big Beautiful Bill Act (OBBBA), enacted on July 4, 2025, established Trump Accounts and the Trump Account Pilot Program.  The IRS recently released interim guidance on definitions related to Trump Accounts, election rules to open an initial Trump Account, and rules for the accounts’ responsible parties.

Each year, the IRS releases its “Dirty Dozen,” a list of tax scams that taxpayers should be wary of. 

In February 2026, the IRS announced that interest rates will decrease for the second quarter of 2026, which begins April 1, 2026. 

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.