Amya Tax Services

Big changes are coming to education in Texas. 🎓
Texas Education Freedom Accounts (TEFA) give families the ability to use state education funds for private school tuition, homeschooling, tutoring, and more beginning in the 2026–27 school year. Funds are placed into a restricted account and used only for approved education expenses. From a tax perspective, TEFA funds are not taxable income to parents, though education providers must report payments as income. Applications are expected to open February 4, 2026. Planning ahead is key.

IRS has announced that Jan 26, 2026 will be the opening of the nation’s 2026 filing season.

IRS announces first day of 2026 filing season; online tools and resources help with tax filing | Internal Revenue Service IR-2026-02, Jan. 8, 2026 — The Internal Revenue Service announced Monday, January 26, 2026, as the opening of the nation’s 2026 filing season. This year, several new tax law provisions of the One, Big, Beautiful Bill become effective, which could impact federal taxes, credits and deductions.

Starting with the 2025 tax year, the IRS introduced a new “No Tax on Car Loan Interest” deduction under the One Big Beautiful Bill Act. For the first time, individuals can deduct up to $10,000 of interest paid on qualifying auto loans used to buy a new, U.S.-assembled vehicle for personal use. The break applies whether you itemize or take the standard deduction and phases out at higher income levels. Loans must start after Dec 31, 2024. Refinances can qualify too. This temporary tax benefit, available through 2028, aims to make car ownership more affordable for working and middle-class taxpayers. Check eligibility and reporting rules before you file.

Many taxpayers are asking when they can officially start filing their tax returns, and at this time, the IRS has not yet announced the official opening date for filing. While tax preparation can begin early, returns cannot be electronically filed until the IRS opens the system for the season. This announcement usually comes closer to the start of filing season. Until then, it’s a good idea to gather documents like W-2s, 1099s, and expense records so you’re ready once filing opens. Staying prepared now can help ensure a smooth and timely filing later.

Strong bookkeeping habits make tax season far less stressful. A simple but effective tip is to review your transactions weekly instead of waiting until month-end. Catching errors early—like duplicate charges or miscategorized expenses—helps keep your financial reports accurate and reliable. Consistent reviews also make it easier to track cash flow and prepare for upcoming tax deadlines. Good books aren’t just about compliance; they give you clearer insight into how your business is really performing.

Need help keeping your books on track? Call 713-395-0930 or DM us today. 📘

Change #8: The OBBBA introduces important inflation adjustments and phase-out updates across several tax credits and deductions beginning in 2026. These changes ensure that key tax benefits—such as the Child Tax Credit, education credits, and certain deductions—keep pace with rising costs. At the same time, income phase-outs will be updated, meaning some taxpayers may see benefits reduced or expanded depending on their earnings. These adjustments are designed to make the tax system more responsive to economic conditions while maintaining fairness across income levels. Understanding where you fall within the updated ranges will be essential for accurate tax planning.

Change #7: Beginning in 2026, the OBBBA introduces new itemized deduction limitations for high-income taxpayers. These rules reduce the total amount of itemized deductions that can be claimed once income exceeds certain thresholds. Expenses such as mortgage interest, charitable contributions, and state and local taxes may no longer deliver the same tax benefit at higher income levels. The goal is to limit how much high earners can lower taxable income through deductions, gradually phasing out benefits as income increases. This change makes proactive tax planning more important for higher-income households as the rules take effect.

⚠️ Important note

The IRS has not yet issued final regulations or exact formulas. Thresholds may be indexed for inflation and could change before implementation.

Change #6: The OBBBA introduces new deductions designed to benefit workers who earn income from tips and overtime pay. Under these changes, eligible taxpayers may deduct a portion of qualified tip income and overtime compensation, helping reduce overall taxable income. This provides meaningful relief for service, hospitality, and hourly workers whose earnings can vary throughout the year. While these amounts must still be reported as income, the deductions help offset the added tax impact of extra shifts and performance-based pay. Proper documentation and employer reporting will be important to ensure eligibility and accurate filings.
If you want details on this feel free to email us at [email protected].

Oh this is very good news indeed:

President signs MATH Act (12-01-25)

The Internal Revenue Service Math and Taxpayer Help Act (MATH Act; H.R. 998), which requires that the IRS provide specific information when it makes a tax return change due to a math or clerical error, was signed by President Trump today. Previously, when the IRS made a change to a taxpayer’s return due to a math or clerical error, the IRS could just make the change without providing much, if any, information to the taxpayer.

Pursuant to the MATH Act, a notice sent by the IRS containing changes due to a math or clerical error must include:

• A clear description of the error, including the type of error and the tax return line where the error was made;
• An itemized computation of adjustments that are required to correct the error;
• The phone number for the IRS’s automated transcript service; and
• The deadline for requesting an abatement of any penalties as a result of the error.

The MATH Act was supported by many professional tax organizations, including the AICPA.

Change #5: (Post 3)

What counts as “Qualified Property” for 100% Bonus Depreciation?

Generally, qualified property includes:

1. New or used tangible business property (equipment, machinery, computers, furniture, tools)
2. Vehicles used more than 50% for business (including some over 6,000 lbs GVWR)
3. Qualified improvement property (QIP) inside commercial buildings (interior improvements, not structural)
4. Certain software (off-the-shelf, not custom)
5. Some qualified film, TV, and live theatrical productions

Key requirement: the asset must be placed in service during the eligible tax year.

Is there an annual limit on bonus depreciation?

✅ No.
Unlike Section 179, bonus depreciation has no dollar limit and no income limitation. It can:

Write off 100% of qualifying property

Create or increase a business loss

Apply regardless of total purchase amount

This makes bonus depreciation especially powerful for capital-intensive or growing businesses.

Change #5: (Post 2)
OBBBA restores 100% bonus depreciation for “𝗾𝘂𝗮𝗹𝗶𝗳𝗶𝗲𝗱 𝗽𝗿𝗼𝗽𝗲𝗿𝘁𝘆” placed in service after January 19, 2025. That includes many heavy vehicles over 6,000 lbs. GVWR.

Because these heavier vehicles aren’t subject to the usual luxury-auto caps, they commonly qualify under bonus depreciation (assuming they meet business-use requirements).

What to watch out for:
For heavy SUVs over 6,000 lbs. using the optional Section 179 deduction, there is a first-year deduction limit (e.g., $31,300 in 2025) instead of full cost.

To qualify for either Section 179 or bonus depreciation:

The vehicle must meet the GVWR threshold.

It must be used more than 50% for business (not personal use).

Proper documentation (mileage logs, purchase date, business use proof) must be maintained.

Change #5: (Post 1)
The OBBBA introduces important updates to depreciation rules, giving businesses greater clarity when planning major purchases. These changes are designed to help businesses recover the cost of equipment, machinery, and qualified improvements more efficiently over time—supporting cash flow and long-term growth. Depreciation isn’t just an accounting concept; it directly impacts how much tax you pay each year. A smart approach is to plan asset purchases strategically, ensuring they’re placed in service at the right time to maximize available deductions. With the right planning, depreciation can become a powerful tax-saving tool, not just a compliance requirement.

Need help planning purchases? Call 713-395-0930.