Tax FAQs

What changed in 2025?

New deductions for small businesses and updated depreciation rules.

How to file in 2026?

Use the updated IRS forms reflecting 2026 tax code changes for businesses.

Are there new credits?

Yes, 2025 introduces credits for eco-friendly business investments and tech upgrades.

Businesses with complex changes or large asset purchases.

Who should consult a tax expert?

Where to find updates?

Check this page regularly for the latest 2025 and 2026 tax news.

Under the OBBBA Multiple Tax Credits Expiring End of 2025

WrEnacted by Congress in July of this year, the One Big Beautiful Bill Act (OBBBA) sets end dates for several tax credits for individuals and families. Understanding these rule changes can help you prepare for the upcoming filing season and for future tax years.

Two major residential energy credits remain available at present, but will expire on December 31, 2025:

Energy Efficient Home Improvement Credit

The Energy Efficient Home Improvement Credit reimburses people for part of the cost of projects that reduce energy losses or overall energy use. Potentially eligible installations include doors and windows that significantly reduce air leakage, along with water heaters and heat pumps with top efficiency ratings. A portion of the cost of a home energy audit performed by a certified expert may also qualify for the credit.

Residential Clean Energy Credit

Meanwhile, homeowners who install energy-generating equipment like solar panels or wind turbines may qualify for the Residential Clean Energy Credit. Eligible purchases also include certain appliances that use alternative energy sources, such as solar-powered water heaters. Note that to qualify for either the Energy Efficient Home Improvement or Residential Clean Energy Credit, installations must be performed by December 31.

Premium Tax Credit (PTC)

In addition, the OBBBA reduces the amount of the health insurance Premium Tax Credit (PTC) beginning in 2026. In the absence of new legislation, many people who purchase health plans through the Insurance Marketplace will see their PTC amount decrease in 2026. As a result, they may have to pay higher insurance premiums.

Note that none of these rules will affect credits that people qualified for in 2025 before the law changes took effect. For example, if you complete the steps necessary to qualify for a home energy credit before the credit expiration date, then you may claim the credit as usual on your 2025 tax return.

2025 End of Year Tax Planning Reminders

With the close of 2025 upon us, now is the time to make sure you are ready for the upcoming tax filing season. Gather up records like receipts or bank statements showing potentially deductible expenses like mortgage loan interest, charitable contributions and student loan interest. To take advantage of new deductions created under the One Big Beautiful Bill Act (OBBBA), you may need proof of car loan interest paid, overtime pay received and tips reported to your employer.

Starting in mid-January, watch for tax statements you will need to prepare your return, such as Form W-2, college tuition statements, Form 1095-A (Health Insurance Marketplace Statement), and 1099 forms showing income from interest, dividends, rent or self-employment. You may receive these documents in the mail, or get notifications explaining how to access digital copies online. Organizing all of these documents as early as possible can save you a great deal of time and stress later.

Also keep an eye on the status of any flexible spending arrangements (FSAs) you and/or your spouse have through workplaces. As a reminder, with only limited exceptions, you will need to use up the balances in those accounts by December 31 in order to maximize tax savings and avoid forfeiting funds to your employer. If your employer’s open enrollment period for 2026 cafeteria benefit plans is still in progress, now is also the time to finalize your contribution amounts. If you are struggling to use up your 2025 FSA balance, you may wish to reduce your monthly contributions next year.

For some people, vehicle mileage records also play an important role in ensuring that they do not miss out on valuable deductions. You may be able to deduct car or truck expenses if you use your personal vehicle for self-employment activities, or to drive yourself, your spouse or a dependent to receive medical care if you itemize deductions. Remember to document your mileage now to maximize your deduction at filing time.

As you plan charitable giving for the holiday season, remember that the deduction rules for donations will change in 2026. If you itemize deductions, then your maximum deduction amount may decrease slightly under the new rules. On the other hand, if you use a standard deduction, you may have the opportunity to claim a special deduction for qualifying cash donations in 2026, but not this year. Therefore, your specific tax circumstances may influence whether you will get a larger tax benefit by donating now, or waiting until the New Year.

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