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Federal Tax Law: One Big Beautiful Bill” Act (OBBBA) – Signed July 4, 2025This tax overhaul builds on the 2017 Tax Cuts and Jobs Act (TCJA) and includes numerous business-friendly provisions, many of which became effective in January 2026. LEARN MORE
100% Bonus Depreciation becomes PermanentBusinesses can immediately deduct the full cost of qualifying assets (machinery, equipment, vehicles, etc.) purchased after January 19, 2025
Section 179 Expensing IncreasedFor 2026, the immediate expense limit is $2.5 million, phasing out after $3.63 million in asset purchases.
Research & Experimental (R&D) Expense DeductionFull and immediate expensing of domestic R&D costs (instead of amortizing), applicable to software and other research, made permanent
Qualified Business Income (QBI) Deduction Made PermanentThe 20% deduction for pass-through business income is permanent, expanded thresholds and a $400 minimum deduction for qualifying business income
1099 Reporting Thresholds RaisedStarting 2026, businesses only need to issue 1099-NEC and MISC forms for payments over $2,000 (up from $600). 1099-K thresholds also revert to $20,000 and 200+ transactions.
Payroll Tax Breaks for Tips and OvertimeNew deductions ensure no federal tax is applied to earmarked tips and overtime pay through 2028.
IRS announces first day of 2026 filing season; online tools and resources help with tax filing IR-2026-02, Jan. 8, 2026The Internal Revenue Service announced Monday, January 26, 2026, as the opening of the nation’s 2026 filing season. This year, several new tax law provisions of the One, Big, Beautiful Bill become effective, which could impact federal taxes, credits and deductions.
IRS announces first day of 2026 filing season; online tools and resources help with tax filing | Internal Revenue Service
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