2026 Annual Tax Season Update

Upon successful completion of this course, participants will be able to:

• Identify the inflation and cost of living adjustments to various federal limits;
• Comprehend the 2025 individual taxpayer changes resulting from passage of the One Big Beautiful Bill Act (OBBBA), impacting 2025 income including-
  • The deduction for State and Local Taxes (SALT Deduction),
  • The exclusion of tip income,
  • The exclusion of overtime pay, and
  • The car loan interest deduction,
• Recognize the applicable optional standard mileage rates;
• Describe the Third Party Network Transaction reporting requirements;
• Identify the salient features of the Direct File Pilot Program;
• Recognize the SECURE 2.0 Act provisions affecting –
  • Catch-up contribution rules, and
  • Increased age of eligibility for the onset blindness or disability for qualified ABLE programs effective for tax years beginning after 12/31/2025.
• Describe the criteria for filing as qualifying surviving spouse;
• Identify those items included in a taxpayer’s taxable earnings;
• Determine the tax treatment of foreign accounts and trusts; and
• Apply the rules governing contributions to and distributions from various retirement accounts.
• Describe the reporting and taxability of unemployment compensation;
• Determine the tax treatment of business income and expenses;
• Distinguish between the actual expense method and simplified method of figuring the home-office deduction;
• List the expenses normally deductible by taxpayers using a home for business purposes who use the actual expense method;
• Recognize the limits applicable to a home-office deduction.
• Distinguish between a hobby and a business for tax purposes; and
• Recognize various property depreciation eligibility requirements and limits.
• List the factors considered in determining the tax treatment of capital gains and losses;
• Identify standard deduction eligibility and amounts;
• Determine the eligibility for and limits applicable to the moving expense deduction;
• Understand the recordkeeping and documentation requirements applicable to the claiming of deductions;
• Recognize the eligibility requirements for various tax credits; and
• Describe the eligibility requirements for and limits applicable to education credits.
• Determine the eligibility for, and amount of, the Earned Income Tax Credit;
• Recognize modifications to the Energy Efficient Home Improvement Credit;
• Identify changes to the Residential Clean Energy Property Credit; and
• Describe the Clean Vehicle Credit changes under the One Big Beautiful Bill Act (OBBBA).
• Identify the rules governing the income tax treatment of virtual currency events and transactions;
• Recognize the aggregation rules applicable to the §199A deduction;
• Identify the trades or businesses considered specified service trades or businesses (SSTBs) that may be ineligible for the pass-through deduction;
• Recognize the eligibility requirements for the Premium Tax Credit;
• Describe the rules governing HSA and MSA eligibility and contribution limits;
• Recognize the options available to a taxpayer for paying any income tax due or receiving an income tax refund; and
• Identify the due dates of income tax returns.
• Identify the red flags indicating possible tax-related identity theft and suggested assistance to its victims;
• Understand the laws and regulations requiring privacy and security of taxpayer data and the best practices tax preparers may implement to help assure it;
• Describe the purpose of individual taxpayer identification numbers, their effect on tax credits and how to renew them;
• Recognize the penalties applicable to a tax return preparer under Title 26;
• Identify the due diligence requirements imposed on tax return preparers with respect to claiming head of household filing status, EITC, CTC and AOTC;
• Understand the e-file requirements; and
• Recognize the Annual Filing Season Program requirements.