Happy New Year’s Eve,
In order to keep the last TGIF 2 Minutes of 2025 as efficient as possible, here are a few year-end notes based on most frequently asked questions in December.
Payment of estimated quarterly taxes to the Federal government (IRS) has gone primarily 100% online. This development has come about amidst stolen checks and fraud in the US Postal service — and online is much faster and easier! Ask your tax professional for the link, or consult http://www.IRS.gov at: Direct Pay with bank account | Internal Revenue Service
Social Security is still taxable but an increased deduction can be taken by seniors. The OBBBA (One Big Beautiful Bill Act) created a generous “senior deduction” of $6,000 to taxpayers age 65 and older and will make a nice dent in taxable income when taken along with the standard deduction. See below for new, increased standard deductions.
Tax brackets have stayed the same with increased income limits to keep up with inflation. The top tax bracket remains 37%.
Standard deductions in 2026 will increase with inflation:
$16,100 Single taxpayer (& married filing separately)
$24,150 Head of Household
$32,200 Married filing jointly
Capital gains tax brackets in 2026 will increase with inflation:
0% for incomes up to $49,450 Single/ $98,900 Married filing jointly
15% for incomes up to $545,500 Single/ $613,700 Married filing jointly
20% for $545,501 or more Single/ $613,701 or more Married filing jointly
Trump Accounts will be available for children under the age of 18 starting in 2026, upon the filing of 2025 taxes, or not before July 2026. A special $1,000 contribution by the Federal government will be made for eligible children born between January 1, 2025 and December 31, 2028. Funds in Trump Accounts must be invested in certain funds that track the S&P 500 or primarily US equities. See: IRS guidance on Trump Accounts
Please stay in touch with further questions on these and anything else financial and lifestyle related!
*Consult with a tax professional on ALL tax matters and tax planning.
This material has been prepared for informational purposes only and is not intended to provide, and should not be relied upon for, tax, legal or accounting advice.
Thank you for reading and Happy New Year!