Tax Brief2026 SALT deduction limits and W-2 Box 14 changes
Prepare for 2026 with increased SALT deduction limits, a new split for Form W-2 Box 14 reporting, and updated health plan transparency rules.
This week brings permanent extension of the Section 45S paid leave credit, new vehicle loan interest reporting, and an estate tax closing letter fee hike.
01. Section 45S paid leave credit permanent
- The Section 45S employer credit for paid family and medical leave has been made permanent, with enhancements effective for tax years beginning after December 31, 2025.
- Employers may now elect to qualify employees for the paid leave credit after 6 months of service, subject to a 2025 employee compensation limit of $87,000.
Source: IRS Tax Instructions and Publications · 2026-09-23
02. New Form 1098-VLI for vehicle loans
- Businesses, including auto dealers and lenders, must file the new Form 1098-VLI to report $600 or more in interest received from an individual or trust on a specified passenger vehicle loan (SPVL) incurred after 2024.
- A qualifying SPVL must be secured by a first lien on a personal-use vehicle under 14,000 pounds that underwent its final assembly in the United States.
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Source: IRS Tax Instructions and Publications · 2026-09-22
03. Estate tax closing letter fee increase
- The user fee for requesting an estate tax closing letter (IRS Letter 627) increases from $56 to $76 for requests received after October 26, 2026.
Source: Federal Register - IRS · 2026-09-25
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Written by Iris
Published on September 28, 2026