Question 1

What is the 401(k) contribution limit for 2026?

Accepted Answer

The IRS announced that the amount individuals can contribute to their 401(k) plans in 2026 has increased to $24,500, up from $23,500 for 2025. This applies to elective deferrals under 401(k), 403(b), and most 457 plans. The IRS also issued technical guidance on all cost-of-living adjustments affecting pension plans and other retirement-related items for tax year 2026.

Question 2

Who benefits from subscribing to IRS tax news updates?

Accepted Answer

Virtually all taxpayers benefit, but the IRS specifically offers E-News for Payroll Professionals — a subscription-based email service delivering updates on legislative changes, IRS news releases, new employment tax procedures, and other information affecting federal payroll tax returns. Individual taxpayers can use the IRS2Go app, the @IRSnews Twitter feed, or the IRS YouTube channel to receive news as soon as it is released to the public, as described in IRS Publication 556.

Question 3

What is the new information reporting threshold for 2026?

Accepted Answer

According to IRS Publication 334, for reportable payments made after 2025, the information reporting threshold under section 6041(a) increases to $2,000 for both information reporting and backup withholding purposes. This change affects businesses that issue Forms 1099 and may reduce the number of required information returns for lower-dollar payments to certain payees.

Question 4

How does the IRS notify taxpayers about disaster-related deadline extensions?

Accepted Answer

According to IRS Publication 556, the IRS may postpone tax filing and payment deadlines for up to one year for taxpayers affected by a Presidentially declared disaster. The IRS publicizes these postponements through news releases, revenue rulings, revenue procedures, notices, announcements, or other guidance published in the Internal Revenue Bulletin. Affected areas are listed at both IRS.gov and FEMA.gov.

Question 5

How does the One Big Beautiful Bill Act (OBBBA) affect my 2026 tax return?

Accepted Answer

The OBBBA (P.L. 119-21), enacted July 4, 2025, makes the 20% qualified business income (QBI) deduction permanent for qualified active trades or businesses, with increased income thresholds. It also permanently extends the disallowance of excess business loss deductions, with the threshold indexed for inflation for tax years beginning after 2025. Taxpayers should consult the Instructions for Form 461 and Form 8995 (or 8995-A) and visit IRS.gov/OBBB for the latest guidance.

Question 6

How does the One Big Beautiful Bill Act (OBBBA) affect my 2026 tax return?

Accepted Answer

The OBBBA (P.L. 119-21), enacted July 4, 2025, makes the 20% qualified business income (QBI) deduction permanent for qualified active trades or businesses, with increased income thresholds. It also permanently extends the disallowance of excess business loss deductions, with the threshold indexed for inflation for tax years beginning after 2025. Taxpayers should consult the Instructions for Form 461 and Form 8995 (or 8995-A) and visit IRS.gov/OBBB for the latest guidance.

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