Short updates on tax changes that matter to families and businesses. This is general information, not advice for your situation; contact us before acting on it.
November 2026
Form 1099 threshold is now $2,000 for payments made in 2026
For payments made in 2026, businesses generally file Form 1099-NEC or 1099-MISC only for a payee they paid $2,000 or more during the year, up from $600 for earlier years. These forms are filed in early 2027. The income is still taxable to the recipient even when no form is issued, so keep collecting Form W-9 from contractors.
Source: IRS
October 14, 2026
Social Security wage base rises to $192,300 for 2027
The Social Security Administration raised the maximum earnings subject to the 6.2% Social Security tax from $184,500 to $192,300 for 2027. Employees and employers each pay up to $11,922.60; the 1.45% Medicare tax still applies to all wages. Benefits rise 3.6% from January 2027. Employers should update payroll settings for the first 2027 pay date.
Source: Social Security Administration
August 2026
Overtime must be reported on 2026 Forms W-2 (box 12, code TT)
Starting with 2026, employers must report qualified overtime compensation on Form W-2 in box 12 using code TT. Employees can deduct up to $12,500 of qualified overtime ($25,000 on a joint return), reduced when modified adjusted gross income exceeds $150,000 ($300,000 joint). Employers should set up payroll now to track the overtime premium separately.
Source: IRS, FS-2026-13
July 2026
Business mileage rate rises to 76 cents per mile from July 1, 2026
Because of higher fuel prices, the IRS raised the 2026 business standard mileage rate from 72.5 to 76 cents per mile for miles driven on or after July 1, 2026. Miles driven earlier in the year still use 72.5 cents, so keep your mileage log by date.
Source: IRS
July 2026
Employers can now contribute to employees’ Trump accounts
Trump accounts are a new type of IRA for children under 18, with an annual contribution limit of $5,000. Beginning July 4, 2026, employers may contribute up to $2,500 a year toward that limit for an employee or an employee’s dependent, and the contribution is excluded from the employee’s income under a qualifying program.
Source: IRS, Publication 15
May 15, 2026
Pennsylvania Property Tax/Rent Rebate: apply by December 31, 2026
Pennsylvania extended the deadline to apply for rebates on property taxes or rent paid in 2025 to December 31, 2026. The program is for residents 65 and older, widows and widowers 50 and older, and people with disabilities 18 and older. The maximum standard rebate is $1,000, and the income limit this year is $48,110. You must apply every year.
May 2026
HSA contribution limits for 2027: $4,500 and $9,000
The IRS set the 2027 Health Savings Account limits at $4,500 for self-only high-deductible health plan coverage and $9,000 for family coverage, up from $4,400 and $8,750 in 2026. If you have an HSA through work or on your own, you can plan next year's contributions now.
Source: IRS, Rev. Proc. 2026-24
March 2026
New Schedule 1-A for tips, overtime, car loan interest, and the senior deduction
The IRS released Schedule 1-A, used to claim the new deductions for qualified tips (up to $25,000), qualified overtime, interest on qualifying car loans, and the enhanced deduction for seniors. These deductions are available whether you itemize or take the standard deduction, but each has income limits, and married couples must file jointly to claim the tips and overtime deductions.
Source: IRS
2026
Saver’s Match starts in 2027: up to 50% match on retirement savings
Starting with contributions made in 2027, the federal government will match up to 50% of what people with low and moderate income save in a 401(k), 403(b), governmental 457(b) plan, or IRA. There is no minimum contribution, so starting to save now is the way to prepare.
Source: IRS
October 2025
Form 1099-K threshold is back to $20,000 and 200 transactions
Payment apps and online marketplaces must send Form 1099-K only when your payments for goods or services exceed $20,000 in more than 200 transactions, though they may still send one for smaller amounts. All income is still taxable whether or not you receive a form, which matters for Turo hosts, online sellers, and freelancers.
Source: IRS
2025
SALT deduction cap raised to $40,000
If you itemize, the limit on deducting state and local taxes, including Pennsylvania income tax and property tax, rose from $10,000 to $40,000 for 2025, and it is adjusted in later years through 2029. Higher-income taxpayers may get a smaller increase, so it is worth checking whether itemizing now beats the standard deduction.
Source: IRS