Now that the confetti has settled and routines are starting to creep back in (yes, my inbox is also overflowing), it’s time to think about tax filing season. In case you missed it, the IRS has officially set the start date: January 26. The filing deadline remains April 15.

While some things (like the filing deadline) remain the same, there’s also a lot of change this year. The IRS has been busy rolling out new forms and guidance. As always, expect a few delays, tweaks, and updates as that continues.

Most recently, business owners got guidance on something they’d been asking for: the return of 100% bonus depreciation. The deduction, originally part of the 2017 Tax Cuts and Jobs Act, was scheduled to phase out starting in 2023. Now, it’s permanently reinstated by the One Big Beautiful Bill Act (OBBBA). The guidance explains how the deduction applies to eligible depreciable property and addresses a new category added by the law (certain qualified sound recording productions).

It’s a huge perk for businesses. Bonus depreciation allows businesses to immediately deduct the full cost of qualifying new or used property in the year it’s placed in service, rather than spreading the deduction over several years.

So, where does section 179 fit into all of this? Bonus depreciation has no annual dollar cap and isn’t tied to business income, so it can even generate or increase a net loss. In contrast, section 179 has a cap and can’t be used for losses. The good news is that you don’t have to choose one or the other—you can use both in the same year.

This guidance isn’t final (we’re still waiting for regs), but the IRS says you can rely on it for now.

Another long-awaited item also dropped this week: Form 4547. The new form allows taxpayers to open a Trump Account for an eligible child when filing a 2025 tax return. If you want to request the $1,000 federal pilot contribution, you must elect it on the form, since opening the account alone does not trigger the deposit.

Treasury won’t begin activating accounts until mid-2026, and no contributions can be made before July 4, 2026.

Who can open an account, how much can be contributed, and how withdrawals will be taxed all depend on the source of funds and the child’s age. Some contributions count toward the annual $5,000 cap, and only some create tax basis—something that will matter later when distributions begin after age 18.

As for that $6.25 billion seed money from Michael and Susan Dell for children who aren’t eligible for the $1,000 pilot program? Information about that money isn’t in Form 4547, the instructions, or the IRS guidance. More information will likely be rolled out separately.

Speaking of billionaires, California is flirting with a wealth tax that has some of its richest residents fuming and others threatening to pull up stakes. The 2026 Billionaire Tax Act is a proposed ballot initiative that would impose a one-time 5% tax on the net worth of California billionaires, potentially raising an estimated $100 billion to help offset federal Medicaid cuts.

It still needs state approval and voter support. Even then, it would face immediate constitutional challenges, especially since it was designed to make avoidance difficult. Residency would be determined as of January 1, 2026, valuations are tightly prescribed, and even illiquid founders could be required to pay (there are some deferral options).

Supporters argue the tax fixes a fairness problem by reaching wealth that never shows up as taxable income, while critics warn it could cause departures and drain state income tax revenue. The proposal is a long way from becoming law, but it’s already dominating conversations across the country.

The billionaire tax isn't the only state tax newsmaker; 2026 is shaping up to be a big year for state tax policy. A major theme to watch is conformity—how (and whether) states will line up with tax law changes under OBBBA. Many legislatures are likely to pick and choose, keeping politically popular provisions like tax breaks for tips, while decoupling from business provisions like full bonus depreciation. Why deviate at all? Some........

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