December 2025: IRS USA Tax Updates

New Trump Accounts: IRS Details Child IRA Structure and Contributions

The Treasury and IRS announced guidance for Trump Accounts, a new IRA-type account for eligible children under 18, with contributions starting July 4, 2026. Eligible children born between 2025–2028 may receive a one-time $1,000 federal contribution, with additional capped contributions from families, employers, and certain organizations, and funds invested in U.S. equity index funds. 

Read the article here: Treasury, IRS issue guidance on Trump Accounts established under the Working Families Tax Cuts; notice announces upcoming regulations | Internal Revenue Service 

IRS Expands HSA Eligibility Under One, Big, Beautiful Bill

The Treasury and IRS released guidance expanding HSA eligibility under the One, Big, Beautiful Bill, allowing more individuals to contribute to HSAs. Key updates include permanent telehealth coverage before deductibles, treating bronze and catastrophic plans as HSA-compatible starting 2026, and allowing HSA use with certain direct primary care arrangements. 

Read the article here: Treasury, IRS provide guidance on new tax benefits for health savings account participants under the One, Big, Beautiful Bill | Internal Revenue Service 

IRS Allows States to Opt In Early to New Scholarship Tax Credit

The Treasury and IRS issued guidance allowing states to opt in early to a new federal tax credit for donations to Scholarship Granting Organizations, effective in 2027. Taxpayers can claim a nonrefundable credit up to $1,700, but only for contributions to SGOs approved by participating states. 

Read the article here: Treasury, IRS allow States to make an Advance Election to participate in the new federal tax credit for individual contributions to Scholarship Granting Organizations under the One, Big, Beautiful Bill | Internal Revenue Service 

IRS Tax Tips

IRS Shares Early Preparation Tips Ahead of 2026 Tax Season

The IRS urges taxpayers to start preparing now for the 2026 tax filing season. Key steps include accessing an IRS online account, organizing tax records early, and understanding new tax changes under the One, Big, Beautiful Bill that may impact deductions and credits.

Read the article here: What taxpayers can do to Get Ready for the 2026 tax filing season | Internal Revenue Service 

IRS Highlights Changes to Adoption Tax Credit for 2025 Filers

Taxpayers who finalized or began an adoption in 2025 may qualify for the Adoption Tax Credit, which now offers up to $17,280 per child and is partially refundable under the One, Big, Beautiful Bill. Eligible adoption expenses span domestic, international, foster care adoptions, with expanded provisions for special-needs determinations. 

Read the article here: Improvements to the Adoption Tax Credit make adoption more affordable | Internal Revenue Service