Eric M. Borow, CPA, PA
Certified Public Accounting · Tampa Bay, FL
June 2026
727-266-2713 · emborow.com
Tax Alert — Tax Year 2026
Your mid-year tax window
is closing fast.
The One Big Beautiful Bill Act rewrote the rules — and most clients haven't yet adjusted their withholding, claimed the new deductions, or confirmed their Q2 estimated payment. June 16th is just days away. Here's what deserves your attention right now.
OBBBA New Deductions — Are You Capturing These?
Tips Deduction (Above-the-Line)
Up to $25,000
Tipped occupations · Phase-out >$150k S / $300k MFJ
Expires 12/31/2028
Overtime Deduction (Above-the-Line)
$12,500 / $25k MFJ
FLSA employees · Phase-out >$150k S / $300k MFJ
Expires 12/31/2028
Senior Bonus Deduction (Age 65+)
$6,000/person
Phase-out >$75k Single / $150k MFJ
Expires 12/31/2028
Auto Loan Interest (New US Vehicles)
Up to $10,000
Phase-out >$100k Single / $200k MFJ
Expires 12/31/2028
Mid-Year Planning Checklist
01
SALT cap just jumped to $40,400 MFJ / $20,200 Single.
That's 4× the old $10k cap. If you previously chose the standard deduction because itemizing didn't pencil out, re-run your projection. Mortgage interest + state taxes + charitable giving may now push you over the $32,200 MFJ / $16,100 Single standard deduction.
02
QBI deduction is now permanent — maximize it.
The 20% Qualified Business Income deduction (§199A) has been made permanent under OBBBA. Pass-through owners: this is your single largest lever. Phase-in begins at $201,775 S / $403,500 MFJ.
03
Business owners: 100% Bonus Depreciation is permanent.
Equipment and qualified property placed in service in 2026 can be fully expensed in Year 1 — permanently. Sec. 179 limit is $1,280,000. The timing urgency is gone; the cash-flow planning still matters.
04
HSA: Still the best dollar in tax planning.
2026 limits: $4,400 self-only / $8,750 family (+$1,000 catch-up age 55+). Deductible contribution, tax-free growth, tax-free withdrawal for qualified medical. Triple tax-advantaged — if you have an HDHP and aren't maxing this, fix it today.
05
Ages 60–63: Your 401(k) super catch-up is $35,750.
SECURE 2.0's super catch-up adds $11,250 on top of the base $24,500, giving you a $35,750 deferral limit — not the standard $32,500. If your election hasn't been updated with HR, every pay period you wait is tax-sheltered money you can't recover.
06
EV & clean energy credits: EXPIRED 12/31/2025.
The Clean Vehicle Credit, Used EV Credit, Home Energy Improvement Credit, and Residential Clean Energy Credit all expired. Do not plan around them for 2026 purchases. If you acquired a qualifying vehicle in late 2025, confirm your paperwork is complete.
07
Review your withholding — now, not in December.
New brackets. New above-the-line deductions. Any income change in 2026. Your old W-4 or prior-year safe harbor may no longer protect you. A mid-year W-4 update takes 1–2 pay periods to take effect. Waiting until Q4 is one of the most consistent and preventable tax mistakes I see each year.
Ready to run your mid-year projection?
I have a handful of review slots open through June 20. We'll confirm your Q2 payment, identify every OBBBA deduction you qualify for, and make sure you're not building a penalty for April.
