THE BRIDGEWATER-SOMERVILLE CONNECTION PAGE 12 APRIL/MAY 2026 theconnectionsnj.com s the deadline to file 2025 individual income tax returns approaches, some taxpayers may benefit from filing an extension to ensure their return is complete and accurate rather than rushed. Taking additional time can help avoid errors and ensure all relevant information is properly reported. Looking ahead to 2026, individuals should also be aware of several tax law changes introduced under the One Big Beautiful Bill Act (OBBBA), including new provisions affecting charitable contributions and the creation of investment accounts for young Americans known as Trump accounts. Historically, one can only deduct charitable contributions if they itemize their deductions on Schedule A (mortgage interest, property tax, etc.). For the years 2026 through 2028, one can deduct up to $1,000 in charitable contributions if their filing status is single ($2,000 if married filing joint) even if they take the standard deduction. If they itemize, there is a .5% floor before any charitable contributions can be deducted. For example, if an individual itemizes and has taxable income of $100,000, and made charitable contributions of $2,500, they can only deduct $2,000 ($2,500 - ($100,000 x .5%)). With the year 2025 individual tax filing deadline approaching, one may consider filing an extension if the return isn’t complete, and individuals could benefit from the charitable contributions and Trump account provisions from the OBBBA. Kingswood Tax and Business Services LLC is located at 75 North Bridge Street, Suite B, in Somerville, NJ. For all of your tax prep and business needs, they can be reached at 908-651-4659 or you can email frank@kingswoodtaxandbiz.com. Looking ahead to 2026, individuals should also be aware of several tax law changes introduced under the One Big Beautiful Bill Act (OBBBA), including new provisions affecting charitable contributions and the creation of investment accounts for young Americans known as Trump accounts. Trump accounts originated out of the idea of starting investment accounts for young Americans. For children born between December 31, 2024 and January 1, 2029, the U.S. Government will give each child $1,000 to start a Trump Account. Parents and others can contribute to a Trump Account up to $5,000 per beneficiary until the account beneficiary reaches the age of eighteen. Employers can also give up to $2,500 to a Trump Account of an employee or dependent. While these contributions wouldn’t be taxable, they would be taxed on distribution. There are a few ways taxpayers open a Trump account. First, they can do so when filing their 2025 tax return. Families can also make an election by using IRS Form 4547 to attach to their tax return or enter online at trumpaccounts.gov once the program launches, which is July 4, 2026. Contributions cannot be made before that date. TAX TALK Tax Filing Season and What’s Next: Key Changes from the OBBBA By Frank Walko A Kingswood Taxand Business services, LLc Frank Walko, CPA – Owner Maximize your potential with innovative solutions and expert advice. Our PERSONALIZED Services include: • Income Tax Preparation – Individual, Business & Estate • Accounting & Consulting Services No Hidden Fees. Individual income tax preparation starts at $199 (may vary based on complexity). Learn more here: www.kingswoodtaxandbiz.com 908-651-4659 frank@kingswoodtaxandbiz.com 75 North Bridge Street | Suite B| Somerville Don’t Stress this Tax Season - Get Professional Help 10% OFF Mention this ad in THE CONNECTION MAGAZINES 50 amwellautobody@gmail.com Tesla Certified
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