Category: Changes and Deadlines

By the time most Parent PLUS borrowers realize what changed in the reconciliation bill Congress passed this spring, the window to protect themselves will already be closed. Under H.R.1, the Department of Education will stop offering legacy income-driven repayment plans for newly consolidated federal student loans starting July 1, 2026. For the millions of parents…

When the IRS announced automatic pandemic penalty relief on December 19, 2023, through Notice IR-2023-244, the agency said it would return roughly $1 billion to about 4.7 million taxpayers who had been charged late-payment penalties on their 2020 and 2021 federal returns. For millions of people, the credits showed up automatically. But not everyone was…

When the IRS opened its electronic filing system for 2025 tax returns in early 2026, it accepted a deduction that had never existed before: up to $25,000 in qualifying tips, subtracted directly from a worker’s taxable income. A full-time bartender in Las Vegas reporting $22,000 in gratuities could keep roughly $2,600 that would have gone…

A parent who borrowed a federal PLUS loan five or ten years ago to help cover tuition may not realize that one administrative step now stands between them and the repayment relief they are counting on. That step is consolidating into a Direct Consolidation Loan, and it must be completed, with the new loan fully…

Somewhere in a kitchen drawer or a pile of unopened mail, millions of American homeowners have a property-tax assessment notice they never questioned. The number on it may be wrong, and not in their favor. A National Bureau of Economic Research working paper by economists Carlos Avenancio-León and Troup Howard, which examines racial disparities in…

When Maria Gonzalez, a 72-year-old widow in Portland, Oregon, sat down with her estate attorney in early 2025, the conversation centered on a single fear: that the federal estate tax exemption was about to be cut nearly in half, potentially exposing her $10 million estate to a tax bill her heirs could not afford without…

For years, a married couple earning $38,000 who adopted a child out of foster care might owe only $1,500 in federal income tax. The adoption tax credit could wipe that bill to zero, but the thousands of dollars left over just sat there on paper, carried forward year after year, often expiring before the family…

A freelance graphic designer earning $120,000 a year can now shield $24,000 of that income from federal taxes, not just this year but every year going forward. A two-partner accounting firm splitting $400,000 in profits can each deduct up to $40,000. And the owner of a small plumbing company clearing $200,000 through an S-corporation can…

Workers who have been maxing out their 401(k) contributions just got more room. Starting January 1, 2026, the annual deferral limit for 401(k) plans climbed to $24,500, a $1,000 increase over the 2025 ceiling of $23,500. The IRA contribution cap rose as well, reaching $7,500 after holding at $7,000 for the prior two years. For…

A 2.7% cost-of-living raise this year will not bump you into a higher federal tax bracket. The IRS has widened all seven income-tax brackets for 2026 by roughly that same percentage, ensuring that inflation alone does not quietly force workers into paying a higher marginal rate on income that buys no more than it did…