Useful Information

• Permanent deduction starting with tax year 2026

• Monetary contributions to qualified public charities only

• Required to take Standard Deduction

• Itemized deductions require 0.5% floor of AGI.

• For taxpayers in the top 37% tax bracket the benefit is capped at 35% of the contribution.

72.5¢ per mile in 2026

• Child must be under age 17 at the end of the tax year.

• Max credit is $2,200 per qualified child adjusted annually for inflation

• Refundable portion is up to $1,700 per child.

• Taxpayer, spouse, and child must have valid Social Security number

• Phase out begins once your income exceeds:

$200,000 for individuals phase out is $50 for every $1,000 over

$400,000 for joint filers phase out is $50 for every $1,000 over

• The following credits have been terminated:

Previously owned clean vehicle credit

Clean vehicle credit

Qualified commercial clean vehicle credit

Energy efficient home improvement credit

Residential clean energy credit

Sustainable aviation fuel credit

• Terminating by 6/30/26:

Alternative fuel vehicle refueling credit

Energy-efficient commercial buildings deduction

New energy-efficient home credit

• Terminating by 1/1/28:

Clean hydrogen production credit

Based on AGI:

These are phased out as follows:

Married Filing Jointly

Reduction begins at $160,000 and is completely phased out by $180,000

Single and Head of Household

Reduction begins at $80,000 and is completely phased out by $90,000

• To avoid the estimated tax penalty you can meet one of the following safe harbor rules:

Pay in at least 90% of your current year’s total tax -or-

Pay in at least 110% of your previous year’s total tax

• Please note that total tax is not the amount of underpayment or overpayment, but is the total amount of federal income tax that is owed for the entire year.

• Cap of $750,000 on acquisition debt from all sources

• HELOC must be used to buy, build, or improve the home that secures the loan

• PMI deduction will be allowed starting in 2026 and is a permanent addition

For tax years 2025 - 2028

• Does not include:

Fleet sales

Personal cash loan

Commercial vehicle not for personal use

Lease financing

Vehicle with salvage title

Vehicle intended for scrap or parts

• Can deduct up to $10,000 of vehicle loan interest per year

• Vehicle must be purchased NEW for personal use.

• Vehicle must have undergone final assembly in the US 

Must weigh less than 14,000 pounds

Must be originally used by the taxpayer

Must have at least 2 wheels

Must be made for the streets

• Not required to itemize

• Phase out is 20% of the exclusion when AGI is as follows:

Married filing joint reduction begins at $200,000 and is completely phased out by $250,000

Single reduction begins at $100,000 and is completely phased out by $150,000

For tax years 2025 - 2028

• Max deduction allowed is up to $12,500 per person

• It applies only to the premium portion of the overtime. (The half part in time and a half)

• Not available to married filing separately filing status

• Worker must be non-exempt

• It should start showing up on W2 in Box 12 Code TT

• Phase out is 10% of the exclusion when AGI is as follows:

Married filing joint reduction begins at $300,000 and is completely phased out by $550,000

Single reduction begins at $150,000 and is completely phased out by $275,000

For tax years 2025 - 2028

• Tips must be voluntary and chosen by the customer.  Mandatory service charges or automatic large-party gratuities do not qualify.

• Max exclusion of tip income is up to $25,000 per tax return, not per person.

• Not required to itemize

• Not available to married filing separately filing status

• Must have a Social Security number, not ITIN.

• Phase out is 10% of the exclusion when AGI is as follows:

Married filing joint reduction begins at $300,000 and is completely phased out by $550,000

Single reduction begins at $150,000 and is completely phased out by $400,000

• Distribution age is now 73

• Penalty for failure to take is 25% of the amount you should have taken.

• If corrected within 2 years the penalty drops to 10%

• For tax years 2025 - 2029

• Must itemize

• Max amount of deduction is $40,000 ($40,400 for 2026)

• Increases the deduction amount and the phase out thresholds by 1% per year

• Phase out begins at $500,000 ($505,000 for 2026)

• Phase out is 30% for every dollar over the threshold and cannot drop below $10,000.

• Max deduction per person $6,000

• Not required to itemize

• Phases out when your Modified AGI is $75,000 for single and $150,000 for joint

• Completely phases out at $175,000 for single and $250,000 for joint

• Phase out is 6% of every dollar over the threshold

• Single - $16,100  >65 add $2,050

• MFJ - $32,200 >65 add $1,650 each

• HOH - $24,150 >65 add $2,050