Trump Accounts: Eligibility, Benefits, and Federal Contributions for Children

Feb 24, 2026

Family at sunset

The introduction of new “Trump Accounts,” beginning in 2025, has generated considerable attention, particularly regarding the proposed $1,000 federal government contribution for eligible newborns. Additionally, numerous companies and philanthropists have publicly committed to making supplementary contributions, further amplifying the impact of these accounts.

What does this mean for your child, and what should you, as a parent, be aware of? Below, our team of tax CPA’s has outlined the key information, critical considerations, and actionable insights to help you navigate these developments and make informed decisions.

What are Trump Accounts?
Trump Accounts are a new custodial-style IRA retirement account for minors, introduced under the Working Families Tax Cuts Act. These accounts allow parents, guardians, and authorized individuals to establish a dedicated savings account for their child’s future, offering unique federal and philanthropic contributions.

Who is eligible for a Trump Account?
Any U.S. citizen with a valid Social Security number and who is under 18 years of age on December 31 of the year the account is opened, may be eligible for a Trump Account. Only one account per child is permitted. In order to receive the pilot program contribution of $1,000, the child must be born between Jan. 1, 2025, and Dec. 31, 2028.

What is the “Dell Gift” or Michael & Susan Dell Contribution?
The Michael & Susan Dell Foundation will provide a $250 charitable deposit, known as the Dell Gift, into Trump Accounts for eligible children aged 10 or younger living in ZIP codes with a median family income below $150,000. This benefit is reserved for children not eligible for the $1,000 government seed money, targeting up to 25 million children born before January 1, 2025. Parents must enroll through the Trump Accounts program to claim this contribution.

How much can you contribute?
Families, friends and employers can make non-deductible contributions of up to $5,000 per year per child.

When can the funds be used?
At age 18, the account is controlled by the child for whom it was established. At that time, funds can be accessed without penalty for qualified expenses like education, a first home purchase, or starting a business. Withdrawals will be subject to restrictions and account earnings will be taxed at ordinary income rates.

How do I open a Trump Account for my child?
Opening a Trump Account starts with an election process through the IRS—either by filing IRS Form 4547 or using the upcoming online tool at trumpaccounts.gov. Elections are scheduled for mid-2026, with accounts becoming available July 5, 2026. Once the election is complete, the Treasury will provide instructions to activate the account.

Trump Accounts represent a groundbreaking opportunity for families to secure their children’s financial futures, leveraging both federal and philanthropic contributions. By understanding eligibility criteria, contribution limits, and withdrawal guidelines, parents can make informed decisions that maximize the benefits of these custodial IRAs for minors. Stay proactive by preparing for the enrollment process and monitoring updates from the IRS and participating organizations. For more information and timely updates, visit the official Trump Accounts website or consult with a financial advisor.

Categories: Tax Planning

2026 Federal Tax Filing Season: Key Dates and Considerations

Feb 04, 2026

As the 2026 federal tax filing season begins, it is essential for individuals and businesses to be aware of key IRS deadlines and best practices to ensure compliance and optimize tax outcomes.

Key Federal Deadlines for Individuals

  • IRS Processing Begins: As of January 26, 2026, the IRS has begun accepting and processing individual tax returns.
  • Tax Day: The deadline for individuals to file federal individual income tax returns or request an extension falls on Wednesday, April 15, 2026.
  • Quarterly Estimated Payments: Taxpayers who pay estimated taxes—including self-employed individuals and those with significant investment income—should note that quarterly payments are due April 15th, June 15th, Sept 15th, and Jan 15th.
  • Extended Filing Deadline: If an extension is filed, the extended deadline for individual returns is Thursday, October 15, 2026. Please note that filing an extension does not extend the time to pay your tax due. The extension is for filing only; any estimated taxes owed must still be paid by the original due date to avoid penalties.

Actionable Insight: Timely estimated payments are critical to avoid underpayment penalties. Review your income sources and consult your WVC accountant to determine if you will be required to make quarterly estimated payments.

Business Tax Return Deadlines
Federal filing deadlines vary by entity type:

  • S-Corporations & Partnerships: Returns are due Monday, March 16, 2026, for calendar-year entities.
  • Calendar year C-Corporations: Returns are due Wednesday, April 15, 2026.
  • Extended Deadlines: For entities that file extensions, S-corporation, and partnership returns are due Tuesday, September 15, 2026.

Essential Filing Tips

  • Begin Early: Although the tax filing deadlines are still months away, taxpayers can organize and prepare their returns in advance. Early preparation facilitates timely filing and allows for proactive resolution of any discrepancies.
  • Gather All Relevant Forms: Ensure collection of all income statements (W-2s, 1099s, etc.) and supporting documentation for deductions and credits before filing. Implement a checklist to guarantee all required forms are gathered and distributed in a timely manner. Missing or late forms may result in penalties.
  • Use Direct Deposit: Filing electronically with direct deposit typically results in faster refunds—most are processed within 21 days.
  • Share Files Securely: When sharing supporting tax documentation digitally, be sure to use secure and encrypted file sharing methods, such as WVC’s Secure File Sharing Platforms, to keep your information safe.
  • Avoid Common Errors and IRS Scams: Carefully review Social Security numbers, bank account details, income entries, and deductions, as filing errors can delay refunds and may trigger IRS notices. In addition, be alert for fraudulent IRS communications—especially with the increasingly sophisticated scams enabled by advances in AI technology. The William Vaughan Company team is extensively trained in fraud and scam detection. If you receive any IRS notice or communication and are uncertain of its legitimacy, contact your WVC tax advisor before responding. We are committed to safeguarding your financial information and guiding you through any concerns regarding potential scams. Alternatively, taxpayers can always review the IRS Tax Scam page here.

    Final Reminders
    The tax filing landscape evolves annually, with new legislative changes and procedural updates that may impact your return. Proactive planning and expert guidance are essential for both compliance and optimizing your tax position.

    If you have questions regarding filing requirements, extensions, estimated payments, or recent tax law changes, please connect with us. Our team is dedicated to supporting you through every step of the filing process.

    Categories: Tax Compliance

    Top 5 Year-End Tax Planning Moves Before 2026: What Businesses & Individuals Should Know

    Dec 01, 2025

    As we approach the end of the year—and as major tax law changes begin to take effect—it’s critical for both businesses and individuals to take stock of evolving tax provisions. The recent updates from the 119th Congress, as detailed in William Vaughan Company’s 2025 Year-End Tax Planning Webinar, contain significant opportunities and pitfalls. Smart planning now can unlock growth, mitigate risks, and ensure you’re maximizing every available benefit.

    Below, we break down the top 5 tax planning considerations you should address before 2026:

    1. Leverage Bonus Depreciation and Expensing Changes – for businesses:

    • Immediate expensing is available for property with a class life of 20 years or less, placed in service after January 19, 2025.
    • Qualified Production Property: Eligible manufacturers who place qualifying real property in service between July 4, 2025 and December 31, 2030, may benefit from accelerated depreciation on this property. This property must meet several specific requirements in order to qualify.
    • State Tax Considerations: For certain states (Michigan in particular), Individuals and flow-through entities must use IRC rules as of 12/31/24 for bonus depreciation, which continues the planned phase-outs and limitations as outlined in the Tax Cuts and Jobs Act of 2017.

    Action Step: Review capital expenditure plans now. Accelerate purchases or construction to maximize deductions under the current, more favorable rules.

    2. Prepare for Beneficial Changes to Interest Expense Limitations
    What’s changing:

    • Starting January 1, 2025, businesses subject to Section 163(j) interest expense limitations can calculate their amount of limited interest expense based on their EBITDA. Previously, Depreciation & Amortization could not be added back in this calculation, which resulted in less allowed interest expense.
    • Starting January 1, 2026 any interest capitalized as additional tax basis to an asset must be broken out of that assets depreciation and subjected to the 163(j) limitations as if it were not part of depreciation.
    • Michigan businesses: Recent decoupling from federal rules means separate treatment for business interest deductions.

    Action Step: Conduct a Section 163(j) analysis to determine if upcoming changes in the limitations will impact your financing structure or projected taxable income.

    3. Understand and Optimize Research & Experimental Expenditures (Section 174)
    Significant changes to Section 174, governing Research and Experimental (R&E) expenditures, have a direct impact on businesses engaged in innovation, product development, or process improvement. Here’s what you need to know:

    Recent Legislative Updates

    • Pre-2022: Businesses could elect to deduct R&E expenses in the year incurred.
    • 2022–2024: R&E costs had to be capitalized and amortized (generally over five years for domestic and fifteen years for foreign expenditures).
    • Post-2024 (Starting in 2025): Businesses may once again elect to deduct R&E expenses in the year incurred (except foreign expenses, which remain subject to 15-year amortization)

    Strategic Planning Opportunities

    • Previously Amortized Costs Going Forward:
      • For 2025, all businesses can elect to expense all prior years unamortized R&E costs in the current year or choose to expense half in 2025 and the remaining half in 2026.
      • If your business has less than $31 million in gross sales on average over the last 3 years, the new law allows for amending prior returns. I.e. you may go back and expense R&E costs in the year they were incurred and claim refunds. The deadline to amend these returns is generally by July 6, 2026, a much shorter timeframe than typically allowed for amendments.
    • Michigan Decoupling:
      • The state now decouples from federal rules on Section 174A (R&E expenses), in addition to Section 163(j), Section 179, and bonus depreciation provisions (Sections 168(n) & 168(k)), after Michigan’s latest budget package passed (H.B. 4961, signed 10/7/25).

    Action Steps for Businesses

    • Review your current and planned R&E activities.
      • Evaluate whether you should accelerate R&E spending into 2025 to maximize immediate deductions.
      • Determine if you are eligible to amend prior year returns and evaluate whether you should do so, in order to meet the fast-approaching deadline.
      • Coordinate with tax advisors to track eligible expenditures and ensure compliance with both federal and state rules.
    • Individuals & Flow-Through Entities:
      • Between section 174A, 163(j) and 168(k) taxable income may be down in 2025 compared to prior years. If you are an S-Corporation, be sure to consider your stock basis and the deductibility of losses when making key decisions for 2025.
      • Also consider making a Roth conversion to take advantage of lower tax brackets if income is lower due to 2025 tax law changes.

    4. Maximize Individual Deductions and Credits Before Phase-outs
    Standard deduction increases (effective 2025):

    • Single: $15,750
    • Married Filing Jointly: $31,500
    • Additional $6,000 for taxpayers 65+ (phase-outs apply).

    Other highlights:

    • State and Local Tax (SALT) cap: $40,000 for 2025-2029, then drops to $10,000 in 2030 (phase-outs apply).
    • Mortgage insurance premiums: Deductible from 2026.
    • Charitable deduction for non-itemizers: Up to $2,000 for joint filers from 2026.
    • Child Tax Credit: Increased and inflation-adjusted.
    • Charitable donations for itemizers: Deductions will be limited for taxpayers in the maximum tax bracket of 37% at 35%. Donations will also be subject to a floor of 0.5% of the taxpayers taxable income beginning in 2026.

    Action Step: Bunch deductions: Consider timing charitable giving, SALT payments, and other deductions to optimize their tax impact before stricter caps and limitations set in. Consider making large doner advised fund (DAF) donations in 2025 to take advantage of the deductions before the new limitations take effect.

    5. Estate & Gift Tax Planning

    • Exemption increases to $15M in 2026 (from $13.99M in 2025).
    • Annual gifting limit: $19,000 in 2025, inflation-adjusted for 2026.
    • Portability remains for spouses.

    Action Step: Review your estate plan: High-net-worth individuals should review gifting strategies and trusts now that we have some certainty in the annual and lifetime limits.

    Why Proactive Planning Matters
    With so many provisions phasing in and out, proactive tax planning is essential. The coming years will see the continuance of many prominent TCJA provisions, new deductions, and complex interactions between federal and state rules. William Vaughan Company is here to help you navigate these changes, optimize your tax position, and ensure compliance.

    Connect with Us.
    Ruben Becerra, CPA – ruben.becerra@wvco.com
    Chad Gates, CPA – chad.gates@wvco.com

    Categories: Tax Planning

    Alert: State Revenue Departments Report A Surge In Tax Phishing Scams

    Sep 22, 2025

    Across the US, state revenue departments, including those in Ohio and Michigan, have begun reporting a surge in tax phishing scams targeting taxpayers via text messages. These fraudulent messages claim the recipient’s tax refund has been approved and instruct them to click on a link to “finalize processing.” The link directs users to a website impersonating the state’s official tax portal, often displaying authentic-looking logos and branding.

    What is a phishing scam?
    Phishing scams are a form of social engineering where attackers deceive people into revealing sensitive information or installing malware such as viruses, worms, adware, or ransomware on their devices.

    Essential tips for personal protection:

    • Do not click links or respond to suspicious texts: Ignore and delete any unsolicited messages claiming to be from state revenue agencies or the IRS regarding tax refunds.
    • Do not share personal or financial information via text: State revenue departments and the IRS do not communicate tax matters or request sensitive information via text.
    • Verify website addresses: Always double-check URLs before entering any information to ensure you are using the official state revenue department or IRS website.

    Next Steps:
    If you believe you have been targeted by a tax phishing scam or have shared information with scammers, you should report the scam to the following authorities:

    • Local law enforcement
    • Relevant credit reporting agencies (let them know your information has been compromised).
    • Your Financial Institution
    • State Attorney General
    • State Revenue Department Fraud Prevention Unit

    If you are unsure about an incoming message, contact your state revenue agency directly through their official channels. For your convenience, the Ohio Department of Taxation has developed an official video detailing how to recognize fraudulent communications: ODT Scam Awareness Video.

    Connect With Us.
    wvco.com

    Categories: IT & Risk Services, Tax Planning

    IRS Releases New Employee Retention Tax Credit Guidance

    Mar 28, 2025

    Wait, we’re talking about the Employee Retention Tax Credit (ERC) yet again? Yes, you read it right, after hearing very little on the topic for the past 18 months, ERC is back in the news. On March 20, 2025, the IRS released new Employee Retention Tax Credit Guidance in an updated FAQ.

    Specifically, the IRS introduced a new section entitled “Income Tax & ERC,” that addresses, one, situations where taxpayers didn’t reduce their claimed wage expense but received the ERC, and two, situations where taxpayers did reduce wage expenses but had a disallowed ERC claim. The tax authority also expanded guidance on reporting ERC fraud.

    Here is what you need to know:

    Income Tax & ERC

    • The IRS stands by its original position that taxpayers should have reduced their deductible wage expense by the amount of allowed ERC in the tax year the qualified wages were paid or incurred. However, the IRS is now providing alternative solutions for claiming unreduced wages. Under the revised guidelines, taxpayers now have the option to report the overstated wage expense as gross income in the tax year when the Employee Retention Credit was received, rather than amending their previous returns. This marks a shift from the earlier policy.
    • The updated FAQ also addresses scenarios where an ERC claim was denied after a taxpayer had already reduced their wage expenses for the year in which the qualified wages were paid. In these cases, taxpayers can now adjust their current return to reflect the increased wage expense corresponding to the disallowed ERC, instead of filing an amended tax return, an AAR, or a protective claim for refund for the earlier tax year. It’s important to note that taxpayers may still opt to amend previous returns to recapture the previously reduced wages.

    ERC Scams

    • The IRS has issued further guidance on the procedures for reporting ERC-related fraud, strongly urging taxpayers to report any suspicious activities, including illegal, tax-related activities involving ERC claims, individuals who promote improper and abusive tax schemes, and tax return preparers who deliberately prepare improper returns. The step-by-step process for reporting ERC fraud can be found in the “ERC Scam” section of the FAQ.

    To read the full FAQ along with the updated guidance, please refer to the IRS website here. To better understand how this new guidance may impact your business, we encourage you to connect with our Employee Retention Tax Credit (ERC) lead, Mike Hanf.

    Mike Hanf, Tax Partner – mike.hanf@wvco.com

    Categories: Tax Compliance

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