Raj Rangwani, CPA,PC

Here’s a sampling of some significant tax law changes going into effect this year:

-New charitable contribution deduction for nonitemizers for cash contributions up to $1,000 ($2,000 for married couples filing jointly)
-New 0.5% of adjusted gross income floor on charitable deduction for itemizers
-New 35% benefit limit on itemized deductions for taxpayers in the 37% tax bracket
-Reduced income thresholds at which the alternative minimum tax exemption begins to phase out (and a phaseout rate that’s twice as fast as 2025’s)
-New tax-advantaged Trump accounts to benefit children under age 18
-Increase in tax-free 529 plan withdrawal limit for qualified elementary and secondary school expenses to $20,000 (from $10,000 for 2025)
-New requirement that higher-income taxpayers’ catch-up contributions to employer-sponsored retirement plans must be treated as post-tax Roth contributions
-Elimination of certain energy-efficiency credits for homeowners
-Wider income ranges over which the Section 199A qualified business income (QBI) deduction limitations phase in, potentially allowing larger deductions for some pass-through entity owners.
-New minimum QBI deduction of $400 for taxpayers who materially participate in an active trade or business if they have at least $1,000 of QBI from it

Contact the office to discuss how these or other changes might affect you.

A recent change in USPS processing rules could change all of this. The USPS has now clarified that most postmarks reflect the date of postal processing, not necessarily the date a mailpiece was deposited by the sender. According to the USPS, because most postmarks are applied at processing facilities, they do not necessarily represent either the place at which, or the date on which, the Postal Service first accepted possession of the mail piece. This means the date stamped by a postmark applied at a processing facility may be later than the date the mailpiece was first accepted by the Postal Service.

https://www.forbes.com/sites/kellyphillipserb/2025/12/22/a-simple-postmark-change-could-affect-your-taxes-and-charitable-giving/?fbclid=IwdGRleAPCb1NleHRuA2FlbQIxMQBzcnRjBmFwcF9pZAo2NjI4NTY4Mzc5AAEefb7SV67wR-NPLycf1LexBmZqc412zjMZr4fZAnwboE8Nj8eXiejZofa1IVQ_aem_ey0WozGbFVX9x65ngOsQ8w

A Simple Postmark Change Could Affect Your Taxes And Charitable Giving Updated postmark rules are redefining what we think of as “on time.” This could have big implications for year-end givers and for taxpayers at tax time.

Lots of useful tax information in our latest newsletter: Social Security Benefits, 5 overlooked tax breaks, implications of working in a family business, what to do if you’re missing tax documents, and much more.

Houston, TX CPA Firm | Newsletter Page | Raj Rangwani, CPA PC Take a look at our Newsletter page. Raj Rangwani, CPA PC is a full service tax, accounting and business consulting firm located in Houston, TX.

It’s important to keep your documents organized for a smooth tax preparation experience. Be sure to check out our website for organization tools. Our clients have access to a secure file vault for a seamless experience.

A heads up to owners: If you earn more than $600 using third-party payment cards, you may receive an Form 1099-K that you need for your 2022 tax return. This form shares income from reportable transactions using digital applications or third-party payment cards. See what this means for your Small Biz: http://ow.ly/ecZp50LkqhR

Lots of great information regarding the Unemployment Tax Break, PPP Loan deadline extension, May 17 Federal tax deadline extension, and highlights of the American Rescue Plan in this month’s newsletter.

Houston, TX CPA Firm | Newsletter Page | Raj Rangwani, CPA PC Take a look at our Newsletter page. Raj Rangwani, CPA PC is a full service tax, accounting and business consulting firm located in Houston, TX.