Hi Everyone –

We hope everyone is having a nice September.  At this point we have passed our internal deadlines for filing your 2024 tax returns. We can still assist, but the return will not be done by 10/15. If you have made payment to us but have not submitted your tax documents please reach out to Info@HSTaxCPAs.com for next steps.

For our September newsletter we wanted to highlight the following tax law changes which go into effect for tax year 2026. There will be notes on what you should focus on for the 2025 tax year as well.

Standard Deduction Filers:

• Current Law: Cannot deduct charitable donations if you do not itemize
• Law after 12/31/25:
  • Single Filers: Can deduct up to $1,000 for donations of cash given to public charities
  • Married Filers: Can deduct up to $2,000 for donations of cash given to public charities
• Consideration for 2025 taxes:
  • Hold off on donating to charities until 2026.
  • Consider making a Qualified Charitable Distribution (QCD) from an IRA.

Itemized Deduction Filers:

• Current Law: Can deduct 100% of charitable contributions up to certain limitations on adjusted gross income.
• Law after 12/31/25: Can only deduct charitable contributions that exceed .5% of the taxpayer’s adjusted gross income.
• Consideration for 2025 taxes: Accelerate charitable contributions to 2025.

There are many more tax law changes that have taken effect, and we will continue to highlight a few each month going into the end of the year. If you prefer a one-on-one call or yearend projection to discuss these items and how they impact your 2025 taxes, please reach out to your account manager or Info@HSTaxCPAs.com to setup a time.