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Useful Tax Information

For the 2025 tax year, the IRS has adjusted standard deduction amounts for inflation:

Standard Deduction (Tax Year 2025 – Filed in 2026)

  • Single Filers: $$15,000
  • Married Filing Jointly: $30,000
  • Head of Household: $22,500

These deductions reduce your taxable income and play a key role in overall tax savings.

Retirement Contribution Limits (2026 Guidance)

Saving for retirement continues to offer valuable tax advantages. Current contribution limits are:

  • 401(k): Up to $23,500 (additional $7,500 catch-up for age 50+)
  • IRA (Traditional/Roth): Up to $7,000 (additional $1,000 catch-up for age 50+)

Contributions may be tax-deductible depending on your income and filing status.

HSA (Health Savings Account) Limits (2026)

Health Savings Accounts provide tax benefits for medical expenses:

  • Individual Coverage: $4,300
  • Family Coverage: $8,600
  • Catch-up (Age 55+): Additional $1,000

Mileage Rates (2026 Update)

The IRS standard mileage rates (subject to annual adjustment) are approximately:

  • Business Use: ~68 cents per mile
  • Medical/Moving: ~22 cents per mile
  • Charitable Use: 14 cents per mile

Note: Always confirm final IRS-issued rates for the year.

Important Tax Credits (2026)

Tax credits directly reduce your tax liability. Key credits include:

  • Child Tax Credit: Up to $2,000 per qualifying child
  • Earned Income Tax Credit (EITC): Amount varies based on income and dependents
  • Education Credits (AOTC/LLC): Available for qualified education expenses

Key Reminders for 2026 Filing Season

  • Keep all income documents (W-2s, 1099s) organized
  • Track deductible expenses throughout the year
  • File early to avoid delays and identity theft risks
  • Pay any owed taxes by the deadline to avoid penalties
  • Consult a professional for complex financial situations

Professional Guidance Matters

Tax laws and limits are updated regularly, and individual situations vary. Working with a professional accounting firm in Texas ensures your filings remain accurate, compliant, and optimized for maximum benefit.