$19,000 for 2026 per recipient, per donor
On July 4, 2025, new tax rules were signed into law under the 2025 Reconciliation Legislation known as the One Big Beautiful Bill Act (OBBBA). This sweeping legislation introduces significant updates across the tax code, impacting how Americans file their taxes in 2025 and for years to come. Some highlights are listed below.
Raised cap: The state and local tax (SALT) deduction cap increases from $10,000 to $40,000 starting in 2025.
There's a new deduction of up to $25,000 for tips received by an individual in an occupation which customarily and regularly receives tips (I can send a list of qualifying occupations). The deduction is allowed for both employees and independent contractors. The deduction begins to phase out for AGI above $150,000 ($300,000 for joint returns). The deduction is allowed through 2028, and is available regardless of whether you itemize or take the standard deduction.
There's a new deduction of up to $10,000 for interest on car loans taken out after 2024 for the purchase of a new personal use vehicle assembled in the U.S. The deduction is allowed through 2028 and begins to phase out for AGI above $100,000 ($200,000 for joint returns). The deduction is available regardless of whether you itemize or take the standard deduction. Pro Tip: To find out if your vehicle was assembled in the U.S., go to vpic.nhtsa.dot.gov/decoder/ and put in the vehicle's VIN
The OBBBA added a new $6,000 per person deduction for all individuals who have reached age 65 before the end of the tax year. This one works like personal exemptions used to before they were repealed: it doesn't matter whether you itemize your deductions and you don't have to do anything to claim it other than have a social security number (and file a joint return, if married). The senior deduction begins to phase out for AGI above $75,000 ($150,000 for joint returns).
You can pay your Federal balance due directly on the IRS website @
You can pay your California balance due @ https://www.ftb.ca.gov/pay/payment-options.html
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