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Normally, certain inflation-adjusted numbers affect taxpayers’ estate plans every year. One is the federal gift and estate tax exemption. But for 2026, the One Big Beautiful Bill Act (OBBBA) permanently increases the exemption amount to $15 million (up from $13.99 million for 2025). That amount will be adjusted annually for inflation for 2027 and beyond. Without the OBBBA, the exemption would have returned to an inflation-adjusted $5 million for 2026. The generation-skipping

If you own a business, the Sec. 179 expensing election allows you to deduct the cost of purchasing eligible assets rather than depreciating them over multiple years. An annual expensing limit applies, which begins to phase out dollar-for-dollar when acquisitions for the year exceed the phaseout threshold. For qualifying property placed in service in 2025, the One Big Beautiful Bill Act (OBBBA) doubles the expensing limit to $2.5 million. The 2025 phaseout threshold is $4 mill

Teachers and other educators should be glad to know that the above-the-line tax deduction they can claim for unreimbursed educator expenses will soon rise. Currently $300 per year, in 2026 the maximum deduction will increase to $350. It will be adjusted for inflation in the future. Married educators who file a joint return can each take the credit. Examples of qualified expenses include books, classroom supplies, computer equipment and professional development tuition. To qua

Employers seeking ways to attract and retain top talent may want to consider providing child care services to staff. A significantly enhanced tax credit can make this more feasible. For 2025, the maximum credit is $150,000. For 2026, it will increase to $500,000 ($600,000 for eligible small businesses). The 2026 credit will equal 40% of the employer’s eligible child care expenses (up from 25% in 2025), or 50% for eligible small businesses. Qualifying expenses include the purc

If you want to expand your family by adopting a child, you’ll be pleased to know that a federal tax credit is available to help adoptive parents offset some of the costs. In 2025, the credit is for up to $17,280 of qualified expenses, with phaseouts for higher-income parents. New in 2025, up to $5,000 of the credit is refundable. You generally can carry forward any nonrefundable amount for up to five years. In 2026, the maximum credit will increase to $17,670, and the refunda