At a Glance: 2026 Tax Season, Filing Major OBBBA and Filing Updates
- SALT Cap Increase: The State and Local Tax (SALT) deduction cap has been raised from $10,000 to $40,000 for eligible taxpayers for the 2025 tax year.
- Business Deductions Restored: The OBBBA has reinstated 100% Bonus Depreciation and expanded Section 179 expensing limits for business owners and self-employed individuals.
- Deadline Opportunities: While most planning ends on Dec 31, you can still contribute to IRAs, SEPs, and HSAs until the April 15, 2026, filing deadline to reduce your 2025 taxable income.
- New Senior Deduction: Taxpayers aged 65+ may be eligible for a new $6,000 additional standard deduction introduced by the OBBBA.
With the tax filing deadline approaching on April 15th (or October 15th for those filing an extension), now is the time to begin aggregating your 2025 records.
While financial institutions and employers will mail most of your tax forms, the legal onus for collecting documents and filing an accurate return lies with you. This is especially true for “proactive” steps that do not generate a tax document, such as Health Savings Account (HSA) contributions or Backdoor Roth IRA conversions.
Essential Resources
• 2025 Tax Checklist: Review our updated list of required documents [CLICK HERE].
• Legislation Update: Be aware of the significant changes introduced by the One Big Beautiful Bill Act (OBBBA). Some key provisions include the permanent extension of the TCJA tax brackets, the increased $40,000 SALT cap (for eligible incomes), and the new $6,000 Senior Deduction for those 65+. [Read our OBBBA Analysis here].
Opportunities Before the Filing Deadline
While most proactive tax planning should be finalized by December 31 [See: Proactive Tax Strategies for High Earners], several high-impact actions can be taken right up until the filing deadline:
• Retirement Contributions: You can still fund Traditional and Roth IRAs (if eligible) for the 2025 tax year.
• Small Business & Self-Employed Plans: Flexibility remains for contributions to Solo 401(k), Keogh, or SEP IRA plans.
• Business Deductions: Owners can still elect to opt in or out of Section 179 and Bonus Depreciation (restored to 100% under OBBBA), and elect the method for home office deduction or vehicle expensing.
• Deduction Optimization: You can evaluate whether Itemizing or taking the Standard Deduction ($31,500 for joint filers) is more favorable for your specific situation.
• Estimated Payments: Ensure your final 2025 estimated payments were settled (ideally by January 15) to mitigate interest and penalties.
Strategic Oversight
Tax planning is a year-round discipline, often requiring years of foresight to maximize lifetime savings. However, the benefits of these strategies are only realized through precise and timely filing.