Tax Knowledge Hub 

Recent 2026 Updates 

• Season Officially Open: The IRS began accepting and processing 2025 federal tax returns on Monday, January 26, 2026.

• New "Schedule 1-A": To claim many of the new OBBB deductions (like the tips and overtime breaks mentioned below), taxpayers now need to file this new schedule alongside their Form 1040.

• "No Tax on Tips" & "No Tax on Overtime":

• Tips: Qualified workers can now deduct up to $25,000 in cash tips (phases out for single filers over $150k income).

• Overtime: Workers can deduct the "half" portion of time-and-a-half pay, up to $12,500 ($25,000 for joint filers).

• SALT Cap Increase: The State and Local Tax (SALT) deduction cap has jumped from $10,000 to $40,000 for the 2025 tax year. This is a game-changer for homeowners in PA who pay significant property taxes.

• American-Made Car Interest: Taxpayers can now deduct up to $10,000 in interest paid on loans for new vehicles assembled in the U.S.

• Direct Deposit Push: The IRS is phasing out paper checks. Taxpayers are being strongly encouraged to use direct deposit to avoid significant delays.