Tax insights for a brighter financial future

Welcome to ABJ Tax Services' Tax Tips & News hub! Stay ahead of the curve with our expert advice, timely updates on tax law changes, and crucial insights designed to benefit you, whether you're an individual or a small business owner . We update this page monthly to keep you informed and empowered. Our family-owned business, with 10 years of experience, is dedicated to your financial success.

Actionable tax tips from ABJ Tax Services

We believe that informed clients are empowered clients. At ABJ Tax Services, we consistently share our top advice to help individuals and small businesses optimize their tax situation and truly understand "what's in it for me." Here are some foundational strategies:

Separate personal and business finances. Never co-mingle funds. Using a separate bank account and credit card for business expenses ensures clear documentation, makes it easier to track profitability (net vs. gross income), and prevents the IRS from auditing personal accounts. This foundational step is crucial for accurate bookkeeping and a smoother tax season.

Review prior year returns. Always check your last two years of tax returns for overlooked deductions or credits, as mistakes or missed opportunities are common. A simple review can uncover significant savings.

Boost your savings with smart tax planning

Beyond immediate tax filings, strategic planning can significantly enhance your financial well-being. ABJ Tax Services guides you through opportunities to reduce your taxable income and maximize long-term growth.

Contribute to retirement and health accounts. Leveraging retirement accounts (e.g., 401(k), SEP-IRA, or Roth IRA) reduces taxable income and builds wealth. Additionally, Health Savings Accounts (HSAs) offer a triple tax advantage: tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses.

Key tax updates for 2026

Staying informed about evolving tax laws is vital. As your dedicated tax preparation experts, ABJ Tax Services provides a monthly rundown of the most important changes that could impact your finances. Here's what you need to know now:

  • Standard deduction & rates: The OBBBA significantly increases the standard deduction to $15,750 for singles and $31,500 for married filing jointly, making these amounts permanent and preventing the TCJA sunset.
  • Trump accounts: Starting July 4, 2026, parents can open these accounts for children, with a one-time federal $1,000 contribution, plus employer/individual contributions up to $5,000/year.
  • Income deductions: A deduction of up to $25,000 per taxpayer for tips (subject to income limitations) and up to $12,500 for qualified overtime pay.
  • Family & individual credits: The Child Tax Credit (CTC) increases to $2,200 per qualified child. The maximum credit rate for Child & Dependent Care increases to 50% of qualified expenses, with an annual limit increase to $7,500. Adoption Credit maximum increases to $17,670 ($5,120 potentially refundable). An additional $6,000 deduction for taxpayers 65 and older.
  • Itemized & other deductions: The State and Local Tax (SALT) deduction cap is increased to $40,000. Individuals not itemizing can deduct up to $1,000 ($2,000 for married joint) for cash donations, while itemizers face a 0.5% of AGI floor.
  • Retirement & investment: Individuals 50 or older earning $150,000+ must place catch-up contributions into a Roth account. The basic exclusion amount for estates rises to $15,000,000.
  • Business provisions: Bonus depreciation and R&D expensing are made permanent. The maximum employer-provided childcare tax credit increases to $500,000 ($600,000 for small businesses).