Fred G Roark Family Tax Service

02/02/2026

IRS Form 4547, "Trump Account Election(s)," is a new 2026 tax document used to establish specialized investment accounts for children under 18.

It allows parents to register for a $1,000 U.S. Treasury pilot contribution for eligible children born after Dec. 31, 2024, and before Jan. 1, 2029.

The form can be filed with 2025 tax returns, with funds available starting July 4, 2026.

Key Details About IRS Form 4547 and Trump Accounts

Purpose: Form 4547 enables the setup of a "Trump Account," which functions as a traditional IRA for children. It is used to claim the $1,000 pilot program contribution for eligible children.

Eligibility: The $1,000 contribution is for U.S. citizen children born between Jan. 1, 2025, and Dec. 31, 2028.

How to File: The form can be filed electronically with 2025 income tax returns or mailed separately.

Process: After filing Form 4547, the Treasury Department will begin sending account activation information in May 2026, and an online portal will be available at trumpaccounts.gov.

Account Rules: These accounts are subject to special rules during a "growth period" lasting until the year before the child turns 18. The funds are intended to be invested in, for example, S&P 500 index funds.

Timeline: While the form can be filed early in 2026, no contributions or the $1,000 deposit can be made before July 4, 2026.

Important Notes

The form is currently in draft status, and, per this Intuit support article, it will be finalized closer to the implementation date.

The parent/guardian filing the form becomes the responsible party for the account.

Taxpayers can find the draft form, according to the IRS website, in the forms and publications section

Trump Accounts provide eligible American children with tax-advantaged investment accounts courtesy of President Donald J. Trump.

01/27/2026

Beginning with the 2025 tax year (taxes filed in early 2026), individuals aged 65 and older with a modified adjusted gross income (MAGI) of less than $75,000—or married couples filing jointly with a combined income under $150,000—are eligible for a new, temporary "senior bonus" deduction of up to $6,000 per person ($12,000 for couples). This deduction is part of the "One Big Beautiful Bill" (OBBBA) and is designed to provide tax relief for middle- and lower-income seniors, on top of existing standard deductions.
Key Details on the New Senior Tax Deduction (2025-2028)

Eligibility: Must be 65 or older by December 31 of the tax year and have a MAGI of $75,000 or less (single) or $150,000 or less (joint) to receive the full deduction.

Amount: Up to $6,000 for single filers and up to $12,000 for married couples filing jointly (if both are 65+).

Phase-out: For incomes above $75,000 (single) or $150,000 (joint), the deduction is reduced by 6 cents for every dollar over the limit, completely phasing out at $175,000 for single filers and $250,000 for joint filers.

Availability: The deduction can be claimed regardless of whether you itemize or take the standard deduction.

Duration: The provision is temporary, in effect from 2025 through 2028.
Impact on Taxes for Seniors

Increased Standard Deduction: When combined with regular 2025 deductions, the total deduction for many seniors could reach $17,750 for single filers and $34,700 for married couples filing jointly.

Social Security Tax: While not completely eliminating taxes on Social Security, the deduction is estimated to zero out the tax burden for 88% of seniors.

Automatic Application: The IRS will automatically apply this additional deduction if you are 65 or older, provided you file Form 1040 or 1040-SR.
Other Considerations

Working Seniors: There is no limit on how much you can earn at full retirement age and still receive benefits.

Low Income Support: Seniors in need of cash assistance may qualify for Supplemental Security Income (SSI).

Potential Drawbacks: The Congressional Budget Office suggested that despite benefits for middle-income earners, some of the poorest seniors might face higher taxes under the broader legislation.

01/14/2026

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01/14/2026

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01/08/2026

Utilize Deductions and Credits

Tax Credits: Credits are generally more valuable than deductions as they reduce your tax bill dollar-for-dollar. Common credits include the Child Tax Credit, the Earned Income Tax Credit (EITC), and education credits like the American Opportunity Tax Credit.

Itemizing Deductions: The standard deduction is a set amount that most people take, but if your eligible expenses (like mortgage interest, charitable donations, and state/local taxes) exceed the standard deduction amount, you may save more by itemizing.

Charitable Contributions: Donating cash or property to qualified non-profit organizations can provide tax savings. Donating appreciated stocks held for over a year is especially tax-efficient, as you can deduct the fair market value and avoid capital gains tax on the appreciation.

Student Loan Interest: You can deduct up to $2,500 of student loan interest paid annually without itemizing your deductions.

Teacher Expenses: Eligible educators can deduct up to $300 for unreimbursed classroom expenses.

01/08/2026

Maximize Tax-Advantaged Accounts

Retirement Savings: Maxing out contributions to tax-deferred retirement accounts is one of the most effective ways to lower your current taxable income.

Traditional 401(k) / 403(b): Contributions are made pre-tax, lowering your current-year AGI (Adjusted Gross Income).

Traditional IRA: Contributions may be tax-deductible depending on your income level and whether you have a workplace retirement plan.

Roth IRA / 401(k): While these contributions don't lower your current tax bill, qualified withdrawals in retirement are entirely tax-free, lowering your future tax burden.

Health Savings Accounts (HSAs): If you have a high-deductible health plan, contributions to an HSA are triple tax-advantaged: they are pre-tax, grow tax-deferred, and are tax-free when used for qualified medical expenses.

Education Savings: Contributions to a 529 plan are not federally tax-deductible, but the earnings grow tax-free, and distributions for qualified education expenses (K-12 tuition, college costs) are not taxed. Your state may also offer a state tax deduction or credit for contributions.

01/08/2026

Key Tax Law Changes for 2025

The "One Big Beautiful Bill Act" (OBBBA), signed into law in July 2025, made several temporary tax law changes permanent and introduced new provisions.

Standard Deduction: The standard deduction amounts have increased due to inflation adjustments:
Single filers: $15,750
Married couples filing jointly: $31,500
Head of household: $23,625

New Deductions:
Overtime and Tip Deduction: Eligible individuals can deduct the portion of qualified overtime pay that exceeds their regular rate, up to $12,500 ($25,000 for joint filers), with phaseouts for higher incomes. A similar deduction for qualified tip income is available, up to $25,000.

Senior Deduction: An additional $6,000 deduction is available for taxpayers age 65 or older.

Car Loan Interest Deduction: You may be able to deduct up to $10,000 of interest paid on loans for qualifying new U.S.-assembled vehicles.

Child Tax Credit (CTC): The maximum credit has increased to $2,200 per qualifying child.

State and Local Tax (SALT) Cap: The cap for itemized deductions for state and local taxes has been temporarily raised to $40,000, with phaseouts starting at higher income levels.

Tax Brackets: The seven federal income tax brackets (10%, 12%, 22%, 24%, 32%, 35%, 37%) have been made permanent and adjusted for inflation.

Important Deadlines and Information
Filing Deadline: The deadline to file 2025 federal income tax returns is April 15, 2026.

Extensions: You can request an automatic six-month extension to file (until October 15, 2026) using IRS Free File, but this does not extend the time to pay any taxes owed.

Required Minimum Distributions (RMDs): If you are age 73 or older, you must take your RMD from retirement accounts by December 31, 2025.

Retirement Contributions:
The maximum IRA contribution for 2025 is $7,000 ($8,000 for age 50 or older).

The 401(k) contribution limit for employees is $23,500.

Form 1099-K Threshold: For payments for goods and services via third-party platforms in 2025, a Form 1099-K will be issued if payments exceed $20,000 and 200 transactions.
You are still required to report all taxable income regardless of receiving a form.

03/05/2025

“The best things in life are free, but sooner or later the government will find a way to tax them.”

— Anonymous

03/05/2025

“Dear IRS, I am writing to you to cancel my subscription. Please remove my name from your mailing list.”

— Snoopy (character created by Charles Schultz)

03/05/2025

“The income tax has made more liars out of the American people than golf has.”

— humorist Will Rogers