EIN
📅 2026 Update: Key Tax Changes Impacting Your EIN
Since the original article was written, there have been significant updates to tax rules and deductions for 2026. These changes affect how taxpayers file their returns, claim deductions, and understand their tax obligations. The earlier article continues further down the page and provides foundational information about obtaining an Employer Identification Number (EIN).
💰 Standard Deduction Increases
The standard deduction has increased significantly for 2026. For single filers and married individuals filing separately, the deduction is now $16,100, up from $15,000 in 2025. For married couples filing jointly, the deduction is now $32,200, rising from $30,000.
Heads of household can claim $24,150, an increase from $23,000.
🎁 New Charitable Deductions
A new charitable deduction applies for 2026. Taxpayers claiming the standard deduction can now deduct up to $1,000 for single filers and $2,000 for married couples filing jointly for cash donations. This provision is valid for cash donations made to qualified 501(c)(3) public charities and is effective through 2028.
👴 Senior Tax Deductions
Individuals aged 65 and older can benefit from an additional federal tax deduction of $6,000. This deduction is effective for the 2025 tax year and continues through 2028. It applies regardless of whether the taxpayer itemizes deductions.
🍽️ Changes for Tipped Workers
Starting in the 2025 tax year, tipped workers are no longer subject to federal income tax on their tips. This change aims to lessen the tax burden on those who rely heavily on tips for their income.
📝 Deductions for Tips and Overtime
The "One Big, Beautiful Bill Act" (OBBBA) introduced deductions for qualified tips and overtime. From 2025 through 2028, eligible taxpayers can deduct up to $25,000 for qualified tips and up to $12,500 for qualified overtime pay, with income-based phaseouts applicable.
📌 Key Points to Remember
- The standard deduction has increased for all filing statuses.
- New charitable deductions are available for standard deduction filers.
- Seniors receive an additional federal tax deduction.
- Tipped workers are exempt from federal income tax on tips.
- Deductions for tips and overtime have been introduced.
💡 Practical Tips for Understanding Your EIN and Taxes
Review the details of your situation with your attorney before making any tax decisions.
📄 Understand the Standard Deduction
Make sure you are aware of the current standard deduction amounts for your filing status. This can significantly impact your taxable income.
🎁 Know Your Charitable Deductions
If you plan to donate to charity, check if your donations qualify for the new cash charitable deduction. This is especially beneficial if you take the standard deduction.
👵 Utilize the Senior Tax Deduction
If you are 65 or older, ensure you claim the additional federal tax deduction. This could lead to a lower tax liability for you.
💼 Keep Track of Tips
If you are a tipped worker, remember that you do not owe federal income tax on your tips. This change can help you save money during tax season.
⏳ Be Aware of Deadlines
Mark your calendar for the tax filing deadline of April 15, 2026, for the 2025 tax year. Missing this date can lead to penalties.
🏛️ Explore Free Tax Help Options
Consider using programs like the IRS Free File or VITA if you need assistance with your taxes. These services can help you navigate your tax situation at no cost.
🏆 Tax Preparation Services Ranked by User Reviews (2026)
This section focuses on tax preparation services that can assist with filing your taxes and obtaining your EIN. Rankings are based on Trustpilot data checked in October 2026. Ratings can change, and they reflect customer experiences.
Remember, unhappy customers often leave more reviews.
🥇 1. 1040.com
1040.com has been rated 4.5 out of 5 stars. It is known for its user-friendly interface and flat-rate pricing. Reviewers mention that it makes filing taxes easier but note some navigation challenges and occasional technical glitches.
🥈 2. efile4Biz
efile4Biz holds a score of 4.7. It is recognized for easy online filing and affordable services. However, some users report occasional navigation issues and limitations in customer support, which could affect your tax preparation experience.
🥉 3. TaxSlayer
TaxSlayer averages 4.2 stars. It has been known for its online tax preparation services at reasonable prices. Reviewers highlight technical issues and concerns about pricing, suggesting that you should carefully review their offerings.
🆓 Free Tax Assistance Programs
The IRS offers free tax assistance programs, such as Free File and VITA. These programs provide no-cost help to eligible taxpayers, making tax preparation accessible for many individuals.
🔎 Factors to Consider
- 🏷️ User ratings and reviews
- 💰 Pricing and available plans
- 📞 Customer support quality
- 🖥️ User interface and ease of navigation
- 📄 Types of services offered
❓ Frequently Asked Questions
❓ What is the new standard deduction for 2026?
The standard deduction for single filers and married individuals filing separately is $16,100 for 2026. For married couples filing jointly, it is $32,200, and heads of household can claim $24,150.
📅 When is the tax filing deadline for 2025 returns?
The deadline to file individual tax returns for the 2025 tax year is April 15, 2026. This date may be extended if it falls on a weekend or holiday.
👴 Who qualifies for the additional senior tax deduction?
Individuals aged 65 and older qualify for an additional $6,000 federal tax deduction. This deduction applies regardless of whether they itemize their deductions.
💼 How can I benefit from the new tips deduction?
If you are a tipped worker, you can deduct up to $25,000 for qualified tips and $12,500 for qualified overtime pay under new laws. This deduction applies from 2025 through 2028.
📝 What is the IRS Free File Program?
The IRS Free File program offers free online tax preparation and filing services for eligible taxpayers who have an adjusted gross income of $73,000 or less.
📞 How can I get help with my taxes?
You can utilize services like VITA, which offers free tax help to individuals earning $60,000 or less, as well as the Tax Counseling for the Elderly (TCE) program for those aged 60 and older.
⚖️ Recent Court Cases Impacting Tax Law
Recent court rulings have addressed various tax law issues that impact taxpayers and their obligations. Understanding these rulings can provide insights into current practices and potential changes in the tax landscape.
- Ohio Court rules on sales tax in insurance total-loss claimsOhio Court of Appeals · July 2, 2026
- Ohio Court affirms dismissal of tax lien dispute caseOhio Court of Appeals · July 9, 2026
- Michigan Court Rules on Tax Foreclosure Surplus Proceeds CaseMichigan Court of Appeals · July 15, 2026
- Texas court affirms dismissal of property tax appeal caseTexas Court of Appeals, 2nd District (Fort Worth) · July 23, 2026
For more recent rulings, please check more rulings on the news page.
End of October 2026 Update
Introduction
Starting a business can be an exciting and fulfilling venture. But before you can begin operating your business, there are a few steps you need to take. One of the most important steps is to apply for an EIN. EIN stands for Employer Identification Number, and it is a unique nine-digit number assigned by the IRS to businesses operating in the United States. In this article, we will take a closer look at EIN, its importance, why you need it, and how to apply for it.
What is EIN?
EIN is a unique nine-digit number assigned to businesses by the IRS. Also known as a Federal Tax Identification Number, it is used to identify businesses for tax purposes. EIN is issued to businesses that have employees, are corporations or partnerships, have a Keogh plan, or are involved in certain types of organizations like non-profits, trusts, and estates.
The EIN is like a social security number for businesses. It is used to track and identify businesses, and it helps the IRS to determine tax liability. EINs are also used to obtain bank accounts, apply for business licenses, and file tax returns.
Why is EIN Important?
Getting an EIN is one of the most important steps you need to take when starting a business. Here are some of the reasons why an EIN is important:
1. It is a requirement to open a business bank account
For businesses to operate, they need a bank account. However, banks require an EIN to open a business account. This is because the EIN serves as a unique identifier for the business, and it helps the bank to track its transaction history and tax liabilities.
📝 See Also
2. It is a requirement to apply for business licenses and permits
Most states and municipalities require businesses to obtain licenses and permits before they can operate. These licenses and permits often require an EIN, as it is used to identify the business for tax and regulatory purposes.
3. It is a requirement for tax purposes
All businesses are required to file tax returns and pay taxes. The EIN is used to identify the business for tax purposes, and it helps the IRS to track tax liability, including income tax, employment tax, and excise tax.
4. Protects against identity theft
Having an EIN reduces the risk of identity theft. It serves as a unique identifier for the business, and it is used to track financial transactions and tax liabilities. This makes it difficult for someone to steal the business’s identity and use it for fraudulent purposes.
How to Apply for EIN
Applying for an EIN is a straightforward process, and it can be done online, by phone, or by mail. Here are the steps you need to follow:
1. Determine if you need an EIN
Businesses that have employees, are corporations or partnerships, have a Keogh plan, or are involved in certain types of organizations like non-profits, trusts, and estates are required to have an EIN. If you are not sure whether you need an EIN, you can use the IRS EIN Assistant to determine if your business requires it.
2. Choose the application method that suits you
You can apply for an EIN online, by phone, or by mail. The online application is the fastest and most convenient way to apply, and you can receive your EIN immediately after completing the application. The phone application is also fast since you can receive your EIN within a few minutes. The paper application takes longer since it has to be processed manually, and it can take up to four weeks to receive your EIN.
3. Gather the necessary information
To apply for an EIN, you will need to provide the following information:
- The legal name of the business
- The mailing address of the business
- The name and social security number of the responsible party
- The type of business entity (sole proprietorship, partnership, corporation, etc.)
- The reason for applying for the EIN
4. Apply for the EIN
Online Application:
To apply for an EIN online, you will need to go to the IRS website and click on the “Apply for an EIN Online” link. You will then be asked a series of questions about your business and its ownership. Once you complete the application, you will receive your EIN immediately.
Phone Application:
To apply for an EIN by phone, you can call the IRS Business and Specialty Tax Line at 800-829-4933. You will be asked to provide the necessary information, and once your application is complete, you will receive your EIN within a few minutes.
Mail Application:
To apply for an EIN by mail, you will need to complete and mail the SS-4 Form to the IRS. The form can be downloaded from the IRS website, or you can request a by calling the IRS Business and Specialty Tax Line at 800-829-4933. Once your application is processed, you will receive your EIN by mail.
Updating EIN Information
It is important to keep your EIN information up to date. If anything changes about your business, such as its name, address, ownership, or structure, you will need to update your EIN information with the IRS. Here are the steps you need to follow:
1. Determine what changes need to be made
If anything changes about your business, it is important to determine what changes need to be made to your EIN information. This could include changes to the business name, address, or structure, or changes to the responsible party.
2. File the necessary forms
To update your EIN information, you will need to file the necessary forms with the IRS. The form you will need to file depends on the type of changes you need to make. For example:
- To change the business name, you will need to file Form SS-4 and write “Name Change” at the top of the form.
- To change the business structure, you will need to file the appropriate form for your business entity, such as Form 8832 for LLCs or Form 2553 for S corporations.
- To change the responsible party, you will need to file Form 8822-B.
3. Notify other agencies
Once you have updated your EIN information with the IRS, it is important to notify other agencies, such as your state and local tax authorities and the Social Security Administration.
Conclusion
Applying for an EIN is an important step for businesses that want to operate legally in the United States. It is required for tax purposes, to obtain business licenses and permits, and to open a bank account. While the application process is straightforward, it is important to keep your EIN information up to date. By following the steps in this article, you can obtain an EIN and ensure that your business operates legally and efficiently.
Using an Employer Identification Number (EIN)
An Employer Identification Number (EIN) is used as a way to identify and individual or company who needs to pay withholding taxes on employees.
A EIN is also known as a
· Federal Tax Identification number
· Tax Identification number (TIN)
· Federal Employer Identification number (FEIN)
An EIN is a nine digit number written in form XX-XXXXXXX that is unique to a particular employer and is assigned by the Internal Revenue Service for identification purposes.
The two digit prefix of an EIN number indicates which campus assigned the EIN number. Before 2001, the two digit prefix indicated the geographic area of the business. However, this is no longer applicable.
EINs are used by sole employers, corporations, government agencies, sole proprietors, partnerships, trusts, non-profit organizations, estates of decedents, certain individuals without employers, and other business entities. Each of these only requires one FEIN number
An employer needs a EIN if an employer:
· Has employees
· Is involved in trusts, estates, non-profit organizations, real estate mortgages investment conduits, plan administrators, or farmers’ cooperatives
· Runs the business as a partnership or corporation
· Has a Keogh plan
· Files Excise, Employment, or Alcohol, Tobacco, and Firearms tax returns
· Withholds taxes other than wages on a non-resident alien employee
If the employer does at least one of these things, a FEIN is required.
Applying for an EIN
A EIN can obtain by completing an application either online, through a toll-free telephone service, through fax or by mail with From SS-4. The internet application is the preferred method for EIN application by customers. Once completed, the FEIN is issued immediately. However, an immediate EIN number can also be received through by phone from 7AM to 10PM local time during the weekdays. Applying by fax takes up to four business days while a mail application takes up to one month.
In certain circumstances, a business may need a new EIN. Generally this is due to any sort of structure change or just a change in ownership. Some changes that require EIN changes include:
For Sole Proprietors
· Being subject to a bankruptcy proceeding
· Taking in partners and becoming a partnership
· Incorporating
· Purchasing or inheriting an existing business that will be operated as a sole proprietorship
For Corporations
· Receiving a new charter from the secretary of state
· Being or becoming a subsidiary of a corporation using a parent’s EIN
· Changing to a sole proprietorship or partnership
· Creating a new corporation after a statutory merger
For Partnerships
· Partnership becoming a sole proprietorship
· Incorporating
· Ending an old partnership and beginning a new partnership
Avoiding Common FEIN Problems
Many of the common problems involving an EIN are experienced by incorrectly filling out paperwork. In order to prevent this, remember to: