IRS unveils 2025 tax season changes with Trump Accounts and new deadlines
The IRS has announced key updates for the 2025 tax season, with filing opening on January 26 and the usual April 15 deadline. A new initiative, the Trump Account, will also launch, offering eligible families a $1,000 federal contribution per child. Meanwhile, states like California are pushing controversial tax reforms targeting high-net-worth individuals.
Taxpayers can now prepare for the 2025 filing season, which begins January 26. The IRS has released updated forms, including Form 4547, which allows families to open a Trump Account for eligible children when submitting their returns. These accounts, funded by a $6.25 billion pledge from philanthropists Michael and Susan Dell, will provide $250 to each of 25 million qualifying children, with federal contributions of $1,000 starting in mid-2026.
Businesses will benefit from the return of 100% bonus depreciation, letting them deduct the full cost of qualifying property in the year it’s placed in service. They can also combine this with Section 179 deductions, as the two have separate limits and eligibility rules. On the state level, California is pushing a 2026 ballot measure called the Billionaire Tax Act. If passed, it would impose a one-time 5% tax on the net worth of the state’s billionaires, aiming to raise $100 billion. Critics argue the proposal faces legal hurdles, while supporters claim it could offset federal Medicaid cuts. Looking ahead to 2026, taxpayers should note changes in Social Security wage bases, income tax brackets, and 401(k) contribution limits. States are also expected to adjust sales tax rules, digital advertising levies, and AI-driven audit processes.
The 2025 tax season introduces new opportunities for families and businesses, from Trump Accounts to expanded depreciation rules. California’s proposed billionaire tax and broader state reforms will shape financial planning in 2026. Taxpayers are advised to review updated IRS guidance and prepare for potential policy shifts in the coming year.
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