OneSource Accounting & Tax

10/22/2026

Social Security Wage Base Climbs for 2027

In 2027, the Social Security wage base rises to $192,300, up $7,800 from $184,500. Wages above that amount aren’t affected by the 6.2% Social Security tax under §3121(a)(1), and the same cap applies to self-employment income under §1402(b)(1). Medicare tax still has no ceiling.

Working retirees get more room, too. Those under full retirement age can earn $25,560 before Social Security withholds $1 for every $2 earned over the limit. In the year they reach full retirement age, the limit jumps to $67,920, with $1 withheld for every $3 over that limit before the month they reach full retirement age. Beginning that month, there's no earnings limit.

10/22/2026

IRS Issues Automatic Adoption Credit Refunds

The IRS has started adjusting accounts and issuing refunds to more than 50,000 taxpayers with adoption credit carryforwards and expects to finish most cases by year-end. The Treasury has clarified how the OBBBA applies to adoption credit carryforwards. For 2025 only, unused credits carried forward from 2020 through 2024 under §23(c) can increase the refundable portion of the 2025 credit, up to $5,000 per qualifying child.

No amended return is needed. Taxpayers who filed before April 15 should get a notice within about 30 days of their adjustment.

10/20/2026

IRS announces tax relief for taxpayers impacted by Hurricane Isaias in Florida, various deadlines postponed to Feb. 8, 2027
FL-2026-07, Oct. 14, 2026

WASHINGTON — The Internal Revenue Service announced today tax relief for individuals and businesses in Florida affected by Hurricane Isaias that began on Oct. 9, 2026. These taxpayers now have until Feb. 8, 2027, to file various federal individual and business tax returns and make tax payments.
Following the disaster declaration issued by the Federal Emergency Management Agency (FEMA), individuals and households that reside or have a business in Baker, Bay, Calhoun, Citrus, Columbia, Dixie, Escambia, Franklin, Gadsden, Gilchrist, Gulf, Hamilton, Holmes, Jackson, Jefferson, Lafayette, Leon, Levy, Liberty, Madison, Okaloosa, Santa Rosa, Suwannee, Taylor, Wakulla , Walton, and Washington counties qualify for tax relief. The declaration permits the IRS to postpone certain tax-filing and tax-payment deadlines for taxpayers who reside or have a business in the disaster area. For instance, certain deadlines falling on or after Oct. 9, 2026, and before Feb. 8, 2027, are granted additional time to file.
As a result, affected individuals and businesses will have until Feb. 8, 2027, to file returns and pay any taxes that were originally due during this period.
The Feb. 8, 2027, deadline applies to individuals who had a valid extension to file their 2025 individual income tax return. Because tax payments related to these 2025 returns were due on April 15, 2026, those payments are not eligible for this relief.

10/15/2026

Premium Tax Credit Repayment Cap Eliminated

Clients who underestimated their 2026 income could face a larger tax bill than expected. The IRS and Treasury Department have released proposed regulations that update the premium tax credit (PTC) rules under §36B to reflect changes made by the One Big Beautiful Bill Act (OBBBA). The biggest change: starting with 2026 returns, the repayment caps in former §36B(f)(2)(B) no longer apply, so taxpayers must pay back every dollar of excess advance PTC (APTC).

10/15/2026

Social Security Benefits Rise 3.6% for 2027

The Social Security Administration (SSA) announced a 3.6% cost of living adjustment (COLA) for 2027. Nearly 72 million Social Security beneficiaries, including those receiving retirement, survivors and disability, will see the increase starting in January. The average retirement benefits will increase by $75 per month. Those who sign up for paperless notices by Nov. 18 can view their COLA notice in their my Social Security account in late November.

10/13/2026

Oct. 15 Deadline for Extended Returns and FBARs

Thursday, Oct. 15, is the last day to file extended 2025 individual returns under §6081. The extensions don’t apply to payments, so applicable failure-to-pay penalties under §6651 and interest under §6601 continue to accrue on unpaid balances.

Oct. 15 is also the automatic extended due date for FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR), required under 31 U.S.C. §5314. Clients whose foreign accounts topped $10,000 in aggregate at any point in 2025 must file electronically with FinCEN, separate from their income tax return.

10/13/2026

Health Insurance Rebate Checks Raise Questions
about two new payments

$ 500 rebate check for eligible HealthCare.gov enrollees who paid full price for 2026 coverage
$ 90 rebate for certain Medicare Part B enrollees. The precise federal tax treatment of these rebates remains uncertain until the IRS provides guidance.

Two code sections are relevant to the deduction treatment; §213 governs itemized deductions for unreimbursed medical expenses, while §162(l) governs the separate self-employed health insurance deduction.

Because either payment could affect the 2026 health insurance premium deduction, you should preserve all related documentation and avoid taking a definitive reporting position until the payment terms and IRS guidance are clear.

Welcome to the Health Insurance Marketplace®. Official government website.

03/03/2026

Employee tips for 2025

Because Forms W-2 issued for 2025 will not separately list cash tips, the IRS will allow taxpayers to meet the reporting requirement if the tips are properly reflected in Box 7 on the W-2 or reported through the employee’s Form 4137. The notice outlines three acceptable methods for calculating total qualified tips:

Use the amount in Box 7 representing Social Security tips
Use all tip amounts reported on Forms 4070, Employee’s Report of Tips to Employer, or other employer- required monthly tip reports
Use amounts reported in Box 14 if provided by the employer
Use voluntary employer disclosures in Box 14 or a supplemental statement if provided
Note: Form 4070 is no longer downloadable from the IRS website. It had historically been included in Publication 1244, Employee’s Daily Record of Tips and Report to Employer, which has been made obsolete and is no longer available.

In addition, any amount the employee reports as unreported tips on Form 4137 may be included in the total.

Taxpayer’s responsibility

A key responsibility remains with the taxpayer. Employees must still determine whether their occupation was one that customarily and regularly received tips before 2025. They can use the list which was included in the September 2025 regulations for reference. Taxpayers may rely on this list until final regulations are issued.

Employers may voluntarily supply occupation information in Box 14, but they are not required to do so for 2025.

The statute normally prohibits the deduction if the tips are tied to an SSTB. The Treasury Department acknowledges that most employers have never evaluated whether their business is a specified service activity for this purpose. Accordingly, until final regulations are issued and effective, the IRS will treat an occupation that appears on the proposed list as eligible, without requiring the employer to determine its specified service status. This enforcement relief applies to both employees and non-employees.