Seikel & Company

Seikel & Company Our bookkeeping, tax and consulting firm offers a wide range of services to an array of entities.

03/05/2026

The IRS published Schedule 1-A (Form 1040), Additional Deductions, along with updated instructions for Form 1040, U.S. Individual Income Tax Return, that explain how taxpayers can claim the new deductions for tips, overtime, and car loan interest, and the enhanced deduction for seniors.

Schedule 1-A does not differ from the draft version issued last year for calculating the four deductions enacted by H.R. 1, P.L. 119-21, commonly known as the One Big Beautiful Bill Act, on a single form. The instructions do provide details on how all four apply, however.

12/15/2025

Reprinted from CPA Practice Advisor:

The Treasury Department and the IRS provided guidance in Notice 2026-05 on Dec. 9 on new tax benefits for health savings account participants under this summer’s One Big Beautiful Bill Act.

These changes expand HSA eligibility, which allows more people to save and to pay for healthcare costs through tax-free HSAs.

Specifically, the Trump tax law, which was enacted last July, expands access to HSAs by making the following changes:

Telehealth and remote care services: The OBBBA made permanent the ability to receive telehealth and other remote care services before meeting the high-deductible health plan deductible while remaining eligible to contribute to an HSA, effective for plan years beginning on or after Jan. 1, 2025.
Bronze and catastrophic plans treated as HDHPs: As of Jan. 1, 2026, bronze and catastrophic plans available through an exchange are considered HSA-compatible, regardless of whether the plans satisfy the general definition of an HDHP. This expands the ability of people enrolled in these plans to contribute to HSAs, which they generally haven’t been able to do in the past. Notice 2026-05 clarifies that bronze and catastrophic plans don’t have to be purchased through an exchange to qualify for the new relief.
Direct primary care service arrangements: Beginning Jan. 1, 2026, an otherwise eligible individual enrolled in certain direct primary care service arrangements may contribute to an HSA. In addition, they may use their HSA funds tax-free to pay periodic DPC fees.
For calendar-year 2026 the annual contribution limit for an individual with self-only coverage under a HDHP will be $4,400, up $100 from $4,300 in 2025. Last year, the amount climbed $150 from $4,150 in 2024.

For an individual with family coverage, the amount is $8,750, an increase of $200 from $8,550 in 2025 and $450 from $8,300 in 2024.

For calendar-year 2026, a “high-deductible health plan” is defined by the IRS as a health plan with an annual deductible no less than $1,700 for self-only coverage or $3,400 for family coverage, and for which the annual out-of-pocket expenses (deductibles, copayments, and other amounts, but not premiums) don’t exceed $8,500 for self-only coverage or $17,000 for family coverage.

12/09/2025

The IRS has issued guidance for the tax-deferred investment program under IRC Sec. 530A, "Trump Accounts," enacted as part of the 2025 Act (formerly known as the One Big Beautiful Bill or OBBB). Notice 2025-68 provides information about new Form 4547 , Trump Account Election(s) , and provides a link to the website taxpayers can use to elect to have an account established for eligible minors. Further, the notice clarifies what investments qualify, when and how distributions may be made, reporting requirements, and tax treatment. Trump Accounts may be opened for a U.S. citizen born between 2025 and 2028, with the government contributing the initial $1,000. Parents and relatives may contribute up to $5,000 per year and employers may contribute $2,500 per year to the account of an employee or employee dependent. Funds in the account must be invested in a qualified mutual fund or exchange-traded fund and held until the beneficiary turns 18, after which the account is treated as a traditional IRA. The IRS intends to issue proposed regulations and is seeking taxpayer feedback through 2/20/26.

12/04/2025

Wrap things up before the end of the year. The OBBBA enhances the tax credit available to parents who adopt a child, beginning in 2025.
If you incur qualified adoption expenses, such as legal fees and travel expenses, you may claim a credit on your personal tax return, up to an annual limit. The credit is available regardless of whether you itemize.
For 2025, the maximum credit amount for an eligible child, which is indexed annually for inflation, is $17,280. Any excess may be carried over. Note: If the child has special needs, you can claim the maximum credit even if your total adoption expenses fall short of that mark.
But the credit is subject to an annual phase-out based on modified adjusted gross income (MAGI). The MAGI threshold is also indexed for inflation. In 2025, the credit begins to phase out if your MAGI exceeds $259,190. No credit is allowed for a MAGI above $299,190.
Law change: The OBBBA establishes that up to $5,000 of the credit is refundable, beginning in 2025, subject to future indexing. This provides financially stressed families some breathing room.
Usually, the credit is available on the tax return for the year in which the qualified expenses are paid or incurred. However, if the adoption isn’t finalized by the end of the year, you may claim the credit in the following year or the year in which the adoption is finalized.

10/24/2025

Social Security Administration announces 2026 COLA benefit increase of 2.8%

10/16/2025

Reprinted from Tax Advisor:

Annual inflation adjustments announced for tax year 2026
By Bryan Strickland
October 9, 2025

The IRS on Thursday provided annual inflation adjustments for more than 60 tax provisions for tax year 2026 and increases to the standard deduction for tax year 2025 as prescribed in H.R. 1, P.L. 119-21, commonly known as the One Big Beautiful Bill Act (OBBBA).

Rev. Proc. 2025-32 provides details about the adjustments and includes new tax rate tables. The annual inflation adjustments generally apply to tax returns that will be filed in 2027.

For tax year 2025, the standard deduction for married couples filing jointly increases to $31,500, up $1,500 from the figure prior to the OBBBA adjustment. For single taxpayers and married individuals filing separately, the standard deduction rises to $15,750 for tax year 2025, up $750. For heads of household, the standard deduction is $23,625 for tax year 2025, up $1,125.

For tax year 2026, the standard deduction is $32,200 for married couples filing jointly; $16,100 for single taxpayers and married individuals filing separately; and $24,150 for heads of household.

Income rate brackets
For tax year 2026, the top tax rate of 37% applies to single taxpayers with incomes greater than $640,600 ($768,700 for married couples filing jointly).

The other rates are:

35% for incomes over $256,225 ($512,450 for married couples filing jointly).
32% for incomes over $201,775 ($403,550 for married couples filing jointly).
24% for incomes over $105,700 ($211,400 for married couples filing jointly).
22% for incomes over $50,400 ($100,800 for married couples filing jointly).
12% for incomes over $12,400 ($24,800 for married couples filing jointly).
10% for incomes $12,400 or less ($24,800 or less for married couples filing jointly).
Other adjustments
The IRS said that for tax year 2026, the alternative minimum tax exemption amount for single taxpayers increases to $90,100 ($70,100 for married individuals filing separately) (from $88,100 in tax year 2025) and begins to phase out at $500,000. For married couples filing jointly, the exemption amount increases to $140,200 (from $137,000 in tax year 2025) and begins to phase out at $1,000,000.
The maximum earned income tax credit (EITC) for qualifying taxpayers who have three or more qualifying children is $8,231, an increase from $8,046 for tax year 2025. The revenue procedure contains a table providing the maximum EITC amount for other categories, income thresholds, and phaseouts.
The monthly limitation for the qualified transportation fringe benefit and the monthly limitation for qualified parking rises to $340, increasing from $325 in tax year 2025.
The dollar limitation for employee salary reductions for contributions to health flexible spending arrangements rises to $3,400, a $100 increase from the previous year. For cafeteria plans that permit the carryover of unused amounts, the maximum carryover amount rises to $680, increasing from $660 in tax year 2025.
For participants who have self-only coverage in a medical savings account, the plan must have an annual deductible of not less than $2,900, up $50 from tax year 2025, but not more than $4,400, up $100 from tax year 2025. For self-only coverage, the maximum out-of-pocket expense amount is $5,850, up $150 from tax year 2025. For family coverage in tax year 2026, the annual deductible must be not less than $5,850, up $150 from tax year 2025; however, the deductible cannot be over $8,750, up $200 from tax year 2025. For family coverage, the out-of-pocket expense limit is $10,700, up $200 from tax year 2025.
The foreign earned income exclusion increases to $132,900, from $130,000 in tax year 2025.
Estates of decedents who die during calendar year 2026 have a basic exclusion amount of $15,000,000, a statutory amount included in the OBBBA, increased from $13,990,000 for estates of decedents who die in 2025. Inflation adjustments, based on the $15,000,000 figure, will resume in calendar year 2027.

09/25/2025

Reprinted from Journal of Accountancy:

The IRS will begin phasing out the use of paper checks for refunds to individual taxpayers at the end of September and will publish detailed guidance for 2025 tax returns before the 2026 filing season begins, a Tuesday news release said.

The move away from paper checks is aligned with President Donald Trump’s Executive Order 14247, Modernizing Payments to and From America’s Bank Account, which orders that Treasury move to electronic disbursements, including for tax refunds, with some exceptions, to the extent that the law allows.

The change affects a small percentage of individual taxpayers, according to data for the 2025 filing season. More than 93.5 million taxpayers received refunds, and almost 87 million (93%) received their refunds via direct deposit. The remaining 7% received paper checks.

Phasing out paper checks will protect taxpayers because that form of payment is 16 times more likely to be lost, stolen, altered, or delayed than an electronic payment, the IRS said. Electronic payments also are deposited more quickly than checks and are less expensive, the IRS said.

For those who do not have access to bank accounts, the IRS will offer options such as prepaid debit cards or digital wallets. In addition, some exceptions will be made, the IRS said. The executive order lists several reasons for exceptions, including a lack of access to banking services or electronic payment systems and for emergency payments where electronic disbursement would cause undue hardship.

The executive order also applies to payments made to the IRS, which said it will issue guidance on that part later.

Until further notice, taxpayers should use existing forms and procedures, including those filing their 2024 returns on extension of a due date prior to Dec. 31, 2025, the IRS said.

09/24/2025

The special per diem rates that a taxpayer may use in substantiating travel and business expenses under the per diem substantiation method (set out in Rev. Proc. 2019-48) remain the same as the previous year, as provided by the IRS in Notice 2025-54 and applicable starting Oct. 1.

Generally, under the per diem substantiation method, if an employer or other payer pays a per diem allowance in lieu of reimbursing an employee’s actual expenses for lodging, meals, and incidental expenses, the amount deemed substantiated for each calendar day is the lesser of the allowance amount for that day or the amount computed under federal per diem rates for the place of travel within the continental United States (CONUS).

A separate federal rate applies to per diem allowances just for meals and incidental expenses (M&IE). Taxpayers using the rates and the list of localities in Notice 2025-54 must comply with the rules for the per diem substantiation method in Rev. Proc. 2019-48.

09/18/2025

The IRS last week released a draft of Schedule 1-A (Form 1040), a single form that consolidates the calculations of the four temporary deductions for tips, overtime, car loan interest, and seniors that are allowed under H.R. 1.

09/16/2025

2026 Income Tax Projections and Tax Brackets: Bloomberg Tax Provides Early Insights for Strategic Planning
The report accounts for several new adjustments made under the One Big Beautiful Bill Act (OBBBA) that affect tax planning for taxpayers in 2026 and beyond.

Bloomberg Tax & Accounting has released its 2026 Projected U.S. Tax Rates, which indicate inflation is holding steady with a 2.7% increase from 2025. The full report is available at https://aboutbtax.com/bjud.

Bloomberg Tax’s annual Projected U.S. Tax Rates Report provides early, accurate notice of the potential tax savings that could be realized due to increases in deduction limitations, upward adjustments to tax brackets, and increases to numerous other key thresholds.

The report accounts for several new adjustments made under the One Big Beautiful Bill Act (OBBBA) that affect tax planning for taxpayers in 2026 and beyond. For corporate taxpayers, they include modified phaseout amounts for the AMTI under §55.

For passthroughs, the report includes an adjustment to the new minimum deduction for active qualified business income under §199A.

For individuals, the report includes varied income tax rates with steeper adjustments for lower brackets. Additionally, the report includes an adjustment to the child tax credit, which has never before been adjusted for inflation.

“Our annual projections provide tax professionals with the timely, data-driven intelligence they need to strategize effectively for the upcoming tax year well ahead of official IRS figures,” said Evan Croen, head of Bloomberg Tax & Accounting. “With persistent inflation affecting everything from individual tax brackets to the child tax credit, our integrated research and software solutions are essential for navigating these changes and optimizing tax planning.”

The updated rates flow directly into Bloomberg Tax’s innovative software solutions including Bloomberg Tax Provision, Bloomberg Tax Fixed Assets, and Bloomberg Tax Workpapers. This is an example of the power and efficiency of Bloomberg Tax & Accounting’s integrated suite of solutions, which modernizes the corporate tax process, from data collection to tax calculations that power key deliverable.

Other key adjustments, with comparisons of the 2025 amounts and 2026 projections, include:

Individual Income Tax Rate Brackets

Married Filing Jointly and Surviving Spouses
2025 Tax Rate Bracket Income Ranges Projected 2026 Tax Rate Bracket Income Ranges
10% – $0 to $23,850 10% – $0 to $24,800
12% – Over $23,850 to $96,950 12% – Over $24,800 to $100,800
22% – Over $96,950 to $206,700 22% – Over $100,800 to $211,100
24% – Over $206,700 to $394,600 24% – Over $211,400 to $403,550
32% – Over $394,600 to $501,050 32% – Over $403,550 to $512,450
35% – Over $501,050 to $751,600 35% – Over $512,450 to $768,700
37% – Over $751,600 37% – Over $768,700

Unmarried Individuals (other than Surviving Spouses and Heads of Households)
2025 Tax Rate Bracket Income Ranges Projected 2026 Tax Rate Bracket Income Ranges
10% – $0 to $11,925 10% – $0 to $12,400
12% – Over $11,925 to $48,475 12% – Over $12,4000 to $50,400
22% – Over $48,475 to $103,350 22% – Over $50,400 to $105,700
24% – Over $103,350 to $197,300 24% – Over $105,700 to$201,775
32% – Over $197,300 to $250,525 32% – Over $201,775 to $256,225
35% – Over $250,525 to $626,350 35% – Over $256,225 to $640,600
37% – Over $626,350 37% – Over $640,600
Standard Deduction

Filing Status 2025 Standard Deduction
Projected 2026 Standard Deduction
Married Filing Jointly/Surviving Spouses $30,000 $32,200
Heads of Household $22,500 $24,175
All Other Taxpayers $15,000 $16,100

Alternative Minimum Tax (AMT)

Filing Status
2025 AMT Exemption Amount Projected 2026 AMT Exemption Amount
Married Filing Jointly/Surviving Spouses $137,000 $140,200
Unmarried Individuals (other than Surviving Spouses) $88,100 $90,100
Married Filing Separately $68,500 $70,100
Estates and Trusts $30,700 $31,400

09/02/2025

Reprinted from Axios PM:

The Treasury Department gave Mike a first look at the list of 68 jobs that qualify for a new tax deduction under the "no tax on tips" pledge in President Trump's "big, beautiful bill."
• Why it matters: Until now, the administration hadn't specified the eligible occupations. There's good news on the list for everyone from golf caddies and party DJs to home electricians.
Treasury Secretary Scott Bessent, who made a Labor Day swing through three Washington-area restaurants to promote the tipping provision, told Axios the list of covered occupations is "expansive but fair."
• "For workers, $20 here and $20 there can make a big difference," Bessent said during an interview at McLean Family Restaurant in suburban Virginia.
Here are the categories and some of the jobs:
1. 🥤 Beverage and food service
• Bartenders, wait staff, cooks and fast-food workers.
2. 🎤 Entertainment and events
• Gambling staff, dancers, musicians and coatroom attendants.
3. 🛎️ Hospitality and guest services
• Bellhops, concierges, desk clerks and hotel maids.
4. 🧑‍🔧 Home Services
• Home maintenance workers, landscapers, electricians, plumbers and cleaners.
5. 🦮 Personal services
• Planners, photographers or officiants for private events; tutors, babysitters, nannies and pet caretakers.
6. 💈 Personal appearance and wellness
• Massage therapists, hairdressers, manicurists, tattoo artists, exercise trainers, and tailors.
7. ⛳️ Recreation and instruction
• Golf caddies, tour guides and sports instructors.
8. 🚕 Transportation and delivery
• Taxi, rideshare or bus drivers; delivery people, home movers and vehicle cleaners.

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