The Internal Revenue Service (IRS) published Revenue Procedure 2025-32 providing the tax year 2026 annual inflation adjustments for more than 60 tax provisions and for individual tax brackets, including amendments made by the One Big, Beautiful Bill Act (OBBBA) on which SWACCA lobbied. These adjustments will generally apply to tax returns for 2026 filed in calendar year 2027.
Among the adjustments included in the list are the OBBBA’s requirement for the SWACCA-advocated Section 199A pass-through deduction that a taxpayer have a minimum of $1,000 in Qualified Business Income to be eligible to claim the deduction. The update also provides that the threshold amounts under Section 199A for tax year 2026 will be $403,500 for married individuals filing jointly and $201,775 for married individuals filing separately. The Revenue Procedure also provides information on the OBBBA’s changes regarding Section 179 expensing, the employer-provided childcare tax credit, adjusted long-term capital gains rates, increases to the standard deduction, the Energy Efficient Commercial Buildings Deduction, and the Alternative Minimum Tax. The Revenue Procedure also provides updated figures for other tax provisions indexed for inflation, including for Medical Savings Accounts, Health Flexible Spending Cafeteria Plans, the annual exclusion for gifts, and the estate tax exemption.