📅 2026 Update: Key Tax Changes Impacting Your Filing

Since the original article was published, there have been several important changes to tax rules and deductions that impact how individuals file their taxes. These updates include increases in standard deductions, new charitable deductions, and changes affecting tipped workers. The earlier article continues below this section for additional context.

📈 Increased Standard Deductions

For the 2026 tax year, the standard deduction has increased. Single filers and married individuals filing separately can claim $16,100, up from $15,000 in 2025. Couples filing jointly now have a standard deduction of $32,200, an increase from $30,000.

Heads of households can claim $24,150, rising from $23,000.

🎁 New Charitable Deductions

Taxpayers claiming the standard deduction can also benefit from a new charitable deduction. Starting in tax year 2025 and lasting through 2028, single filers can deduct up to $1,000 for cash donations to qualified charities. Married couples filing jointly can deduct up to $2,000.

This applies only to donations made to qualified 501(c)(3) organizations.

👴 Senior Tax Deductions

Individuals aged 65 and older are eligible for an additional federal tax deduction of $6,000. This applies regardless of whether they itemize deductions and is effective through 2028. This change is significant for seniors, allowing them to reduce their taxable income more effectively.

💵 Deductions for Tips and Overtime

Under the "One Big, Beautiful Bill Act" enacted on July 4, 2025, new deductions for tips and overtime compensation have been introduced. Taxpayers can now deduct up to $25,000 for qualified tips and $12,500 for qualified overtime pay. This applies through 2028 and aims to support workers in these sectors.

📌 Key Points Summary

  • 🔹 Standard deduction for single filers is $16,100.
  • 🔹 New charitable deductions for cash donations available.
  • 🔹 Additional $6,000 deduction for seniors aged 65 and older.
  • 🔹 Deductions for qualified tips and overtime introduced.
  • 🔹 These changes are effective through 2028.

💡 Tips for Navigating Your Taxes

Reviewing your tax situation can be complex, so it’s useful to consult an attorney for personalized understanding.

📃 Keep Track of Deductions

Make sure to document all your deductions throughout the year. Track eligible expenses like charitable donations and any tips or overtime pay you receive. This can help maximize your potential deductions when filing.

📅 File on Time

Be aware that the deadline to file individual tax returns for the 2025 tax year is April 15, 2026. If this date falls on a weekend or holiday, the deadline is extended. Timely filing can help avoid penalties.

🧾 Use the Right Forms

If you may be subject to the Alternative Minimum Tax (AMT), ensure you complete and attach Form 6251 to your tax return. This form is important for determining whether you owe AMT.

🎉 Take Advantage of Free Assistance

Consider utilizing free tax help programs, such as the IRS Free File program, if you qualify. These services can assist with online tax preparation and filing, making the process easier.

📖 Review IRS Resources

The IRS website offers valuable resources, including forms and publications, to help you understand tax laws better. Regularly check these resources for updates that may impact your filing.

📊 Plan for Future Deductions

Stay informed about upcoming tax changes, especially those that impact deductions. Planning ahead can help you adjust your finances to take advantage of these benefits.

🏆 Top Tax Services Ranked by User Reviews (2026)

This section presents services that can assist with tax preparation and filing. These options are ranked based on Trustpilot data from October 2026. Ratings can change over time, and it's important to consider them along with customer feedback, as unhappy customers may leave more reviews.

🥇 1. efile4Biz

efile4Biz has been rated 4.7. Users appreciate its easy online filing and affordable services. However, some reviewers mention occasional navigation issues and limitations in customer support.

This service can be helpful for straightforward tax situations.

🥈 2. TaxSlayer

TaxSlayer holds a rating of 4.2. It is known for its online tax preparation and competitive pricing. Reviewers have reported occasional technical issues and concerns about pricing transparency.

This service may be suitable for individuals looking for a user-friendly interface.

🥉 3. 1040.com

1040.com averages 4.5. This platform is recognized for its user-friendly interface and flat-rate pricing. While many find it straightforward to use, some users have noted navigation challenges and technical glitches.

It is a good option for those who prefer a simple tax filing process.

🆓 Free Tax Assistance Programs

The IRS offers programs such as Free File, which provides free tax preparation for eligible taxpayers, and Volunteer Income Tax Assistance (VITA) for those earning $60,000 or less. These options can help taxpayers navigate their filing without cost.

🔎 What to Compare When Choosing a Service

  • 🔍 Trustpilot scores and review counts.
  • 🔍 User-friendliness of the interface.
  • 🔍 Available support options.
  • 🔍 Pricing transparency and any hidden fees.
  • 🔍 Specific features that cater to your tax situation.

❓ Frequently Asked Questions

🤔 What is the standard deduction for 2026?

For the 2026 tax year, the standard deduction is $16,100 for single filers and $32,200 for married couples filing jointly.

📅 When is the tax filing deadline for 2025?

The deadline to file individual tax returns for the 2025 tax year is April 15, 2026. This date may change if it falls on a weekend or holiday.

🧾 How do I know if I need to file Form 6251?

If you have high income or significant deductions, you may be subject to the Alternative Minimum Tax (AMT) and need to file Form 6251 with your return.

🎁 Can I deduct charitable donations if I take the standard deduction?

Yes, if you claim the standard deduction, you can deduct up to $1,000 for cash donations as a single filer or $2,000 if married filing jointly.

👴 Who qualifies for the additional senior tax deduction?

Individuals aged 65 and older are eligible for an additional $6,000 federal tax deduction, regardless of whether they itemize deductions.

💵 What changes were made for tipped workers?

Starting in the 2025 tax year, tipped workers no longer pay federal income tax on their tips, which reduces their overall tax burden.

⚖️ Recent Court Cases Related to Taxes

Recent court rulings have addressed various tax issues, including deductions and credits. These cases can help clarify how tax laws are applied in real situations.

For more details, explore recent rulings in the news section: more rulings on the news page.

End of October 2026 Update






FEIN: Everything You Need to Know
If you're a business owner in the United States, then you've probably heard of a FEIN number, which stands for Federal Employer Identification Number. The FEIN is also referred to as an EIN or an Employer Identification Number. This number is assigned by the Internal Revenue Service (IRS) for tax purposes, and it's used to identify businesses and other entities. In this article, we'll take a detailed look at FEIN, including how to get one, why you need one, and when you should update or change your FEIN.

What is a FEIN?

As mentioned earlier, a FEIN, or Federal Employer Identification Number, is a unique nine-digit number used to identify businesses and other entities for tax purposes. The IRS issues FEINs, and they are used to track tax returns, employer tax deposits, and other business-related activities.

FEIN

Who Needs a FEIN?

Most businesses in the United States will need a FEIN at some point. Here are some examples of when you may need a FEIN:

- You are starting a new business, and you plan to hire employees

- Your business is a partnership, LLC, or corporation
- You are opening a bank account or applying for a loan in the name of your business
- You are paying taxes or filing tax returns as a business entity
- You are purchasing or inheriting an existing business

How Do You Get a FEIN?

Getting a FEIN is a relatively simple process. You can apply for a FEIN online, by phone, by fax, or by mail. Here are the steps that you'll need to follow:

1. Determine Whether You Need a FEIN: Not all businesses will need a FEIN. You'll need to determine whether your business is required to have one. The IRS website has a helpful tool that can assist you in determining whether you need a FEIN.

2. Gather Your Business Information: Before you apply for a FEIN, you'll need to have certain business information on hand, including your business name, business address, and type of business entity.

3. Choose Your Application Method: You can apply for a FEIN online, by phone, by fax, or by mail. The online application is the quickest and easiest method, and you'll receive your FEIN immediately after completing the application. If you choose to apply by phone, fax, or mail, it may take several days to receive your FEIN.

4. Fill Out the Application: The application will ask for information about your business, such as the name, address, and type of business entity. You'll also need to provide the name and Social Security number of the responsible party for the business. The responsible party is usually the owner, partner, or officer of the business.

5. Submit Your Application: After you've completed the application, you'll need to submit it to the IRS. If you're applying online, you'll receive your FEIN immediately after submitting the application. If you're applying by phone, fax, or mail, you'll receive your FEIN within a few days.

How Much Does a FEIN Cost?

Getting a FEIN is free. There is no fee to apply for a FEIN, and you can do it yourself online, by phone, by fax, or by mail. If you hire a third-party service to apply for a FEIN on your behalf, they may charge a fee for their services.

When Should You Update Your FEIN?

In certain situations, you may need to update or change your FEIN. Here are some examples:

1. Change in Business Structure: If you change the structure of your business (e.g. from a sole proprietorship to an LLC), you'll need to apply for a new FEIN.

2. Change in Ownership: If there is a significant change in ownership of your business (e.g. the owner sells the business or a partner leaves the business), you'll need to apply for a new FEIN.

3. Bankruptcy: If your business files for bankruptcy, you'll need to apply for a new FEIN.

4. Merger or Acquisition: If your business merges with or is acquired by another business, you'll need to apply for a new FEIN.

5. Change in Name or Address: If your business changes its name or address, you'll need to notify the IRS of the change.

Why You Should Get a FEIN?

There are several reasons why you should get a FEIN for your business. Here are some of the main benefits:

1. Legitimacy: Having a FEIN gives your business legitimacy. It shows that you are registered with the IRS and that you are a real business entity.

2. Hiring Employees: If you plan to hire employees, you'll need a FEIN to withhold and pay taxes on their behalf.

3. Tax Returns: If you're a business entity, you'll need to file tax returns with the IRS. A FEIN is required to file these returns.

4. Opening a Business Bank Account: Most banks require a FEIN to open a business bank account. Without a FEIN, you may not be able to open a bank account in the name of your business.

5. Applying for Business Credit: If you plan to apply for business credit, such as a loan or credit card, you'll need a FEIN. Lenders use your FEIN to check your credit history and verify the legitimacy of your business.

What About State Employer Identification Numbers?

Some states require employers to obtain a state employer identification number (SEIN) in addition to a FEIN. These numbers are issued by the state and are used for state tax purposes. Not all states require SEINs, and the requirements vary by state. You'll need to check with your state's taxing authority to determine whether you need a SEIN.

Conclusion

Getting a FEIN for your business is a crucial step in establishing your business's legitimacy and complying with tax laws. The process is relatively simple, and there is no cost to apply. Remember to update your FEIN if there is a significant change in your business structure or ownership. Having a FEIN can also open up opportunities for your business, such as hiring employees or applying for business credit.

What is a Federal Employer Identification Number (FEIN)?
A Federal Employer Identification Number (FEIN) is used as a way to identify and individual or company who needs to pay withholding taxes on employees.

A FEIN is also known as a

📝 See Also

• Federal Tax Identification number

• Tax Identification number (TIN)

• Employer Identification number (EIN)

A FEIN 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 a FEIN number indicates which campus assigned the FEIN number. Before 2001, the two digit prefix indicated the geographic area of the business. However, this is no longer applicable.

FEINs 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 FEIN if an employer:

• Has employees

• Runs the business as a partnership or corporation

• Files Excise, Employment, or Alcohol, Tobacco, and Firearms tax returns

• Withholds taxes  other than wages on a non-resident alien employee

• Has a Keogh plan

• Is involved in trusts, estates, non-profit organizations, real estate mortgages investment conduits, plan administrators, or farmers’ cooperatives
If the employer does at least one of these things, a FEIN is required.

Applying for a FEIN

A FEIN 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 FEIN application by customers. Once completed, the FEIN is issued immediately. However, an immediate FEIN 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 FEIN. Generally this is due to some sort of structure change or just a change in ownership. Some changes that require FEIN 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 a FEIN are experienced by incorrectly filling out paperwork. In order to prevent this, remember to:

• Always include a EIN, SSN, or ITIN on Form SS-4

• Use a full legal name on Form SS-4 as well as the FEIN provided consistently

• Inform the IRS of business name changes

• If the company uses a P.O. Box, use that instead of the physical address as the mailing address