2026 Filing Season at a Glance — Key 2025 Law & Limit Updates (EA Perspective)
The 2026 filing season (for tax year 2025) brings practical changes that will affect real families, employees, freelancers, and expats. Below I highlight what matters most in practice: standard deduction updates, the phased Form 1099-K thresholds, expansion of IRS Direct File, FEIE amounts for Americans abroad, and a few age-based retirement catch-up reminders. Each section includes quick examples so you can see how the rules apply before you file.
1) Standard Deduction — 2025 amounts
For tax year 2025, the IRS lists the following basic standard deduction amounts in Publication 505, $15,000 (Single/MFS), $30,000 (MFJ/QSS), and $22,500 (Head of Household). Additional amounts may apply if you’re 65+ or blind.
Jordan (Single) has $11,200 of potential itemized deductions. For 2025, the standard deduction is $15,000, so Jordan takes the standard deduction instead and keeps records for next year if mortgage interest or medical costs increase.
2) 1099-K Phase-In — 2024→2026 threshold timeline
Third-party platforms (payment apps/marketplaces) must issue Form 1099-K as the thresholds phase in $5,000 for 2024, $2,500 for 2025, and $600 for 2026 and later.
Keep business vs. personal transfers clearly separated and track basis on items you resell.
Taylor sells a used camera for $400 that originally cost $900. Even if a 1099-K arrives, there’s typically no taxable gain on a personal-use item sold at a loss. But repeat sales for profit (inventory/flipping) are business income and belong on Schedule C with deductible expenses.
3) IRS Direct File — who can use it in 2025
The IRS has expanded Direct File so eligible taxpayers in two dozen+ states can e-file federal returns for free.
Scope is still focused on simpler returns (e.g., W-2 wages, Social Security, common credits), and availability varies
by state. Check the IRS Direct File page for current eligibility and participating states.
Casey works for one employer (W-2), takes the standard deduction, and lives in a participating state.
Casey can likely use Direct File and import wage data directly from the IRS system, saving prep fees and time.
4) Foreign Earned Income Exclusion (FEIE) — 2025 amount
For Americans abroad, the maximum FEIE for 2025 is $130,000, rising to $132,900 for 2026 per IRS inflation updates. You must meet the bona fide residence or physical presence test, and housing exclusion rules may also apply.
Alex and Morgan both qualify for FEIE in 2025. Each can exclude up to $130,000 of foreign earned income if they meet the tests. They also review housing exclusions because rent in their city is high.
5) Age-based Catch-ups — quick notes for 60–63
Under SECURE 2.0, a special “age 60–63” higher catch-up is scheduled to apply once fully implemented by the IRS and plan administrators. For now, keep contributing regularly and watch plan notices for implementation timing and Roth vs. pre-tax rules if your prior-year wages exceed the IRS threshold.
6) EA Filing Checklist — what to do now
- Compare itemizing vs. the 2025 standard deduction before year-end purchases.
- Separate personal and business payment-app activity; keep basis/expense records for any sales.
- Check if your state participates in Direct File and whether your return type is eligible.
- For expats: confirm FEIE eligibility and days abroad; review housing exclusion caps.
핑백: 2026 Income Tax Review I
핑백: Activities That Can Jeopardize Tax-Exempt Status