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.
Prepare for 2026 with key updates on the FIRE system shutdown, new non-itemizer charitable deductions, and automatic Section 530A accounts for minors.
01. FIRE platform shutdown for 2026
- Beginning with Tax Year 2026, the FIRE platform will shut down and IRIS will become the sole electronic intake system for all information returns.
- Filers transitioning from FIRE must complete an application for a new IRIS Transmitter Control Code (TCC), as existing FIRE TCCs cannot be used in the IRIS portal.
Source: IRS Tax Instructions and Publications · 2026-09-30
02. New non-itemizer charitable deduction limits
- For 2026 tax returns, eligible taxpayers who take the standard deduction can deduct up to $1,000 ($2,000 for married filing jointly) of qualifying cash charitable contributions.
- Donations to donor-advised funds generally do not qualify for this non-itemizer deduction.
Source: IRS Tax Instructions and Publications · 2026-10-02
03. Automatic Section 530A accounts for minors
- Under temporary regulations, on or about October 1, 2026 the Treasury will automatically set up a Section 530A Trump account (a type of traditional IRA) for each child under 18 with a Social Security number who does not already have one.
- These automatic accounts can only receive government or charity contributions. To receive family or employer contributions, a parent must claim the account, which opens a separate account that the automatic balance rolls into.
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Source: Federal Register - IRS · 2026-09-30
04. New Section 25F scholarship tax credit
- The IRS issued temporary and proposed regulations for the new Section 25F credit of up to $1,700 a year for cash contributions to certified scholarship granting organizations. It applies only to contributions made in 2027 and later.
- Donors must designate the gift as a qualified contribution when they make it, and the organization must send a written acknowledgment with the donor's unique donor number by January 31 of the following year.
Source: Federal Register - IRS · 2026-10-02
05. Form 1099-DA rules for dual classification assets
- For 2026 sales, brokers generally report digital assets, including dual classification assets that are also securities, on Form 1099-DA rather than Form 1099-B.
- There are three exceptions: assets that count as digital only because they settle on a limited access regulated network stay on Form 1099-B, Section 1256 contracts reported on an aggregate basis stay on Form 1099-B, and money market fund shares need no Form 1099-DA.
Source: IRS Tax Instructions and Publications · 2026-10-02
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Published on October 5, 2026