The Connections Bridgewater-Somerville Edition April/May 2026

THE BRIDGEWATER-SOMERVILLE CONNECTION

PAGE 12

APRIL/MAY 2026

K ingswood T axand B usiness s ervices , LLc Frank Walko, CPA – Owner Maximize your potential with innovative solutions and expert advice.

Our PERSONALIZED Services include: • Income Tax Preparation – Individual, Business & Estate • Accounting & Consulting Services No Hidden Fees. Individual income tax preparation starts at $199 (may vary based on complexity).

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TAX TALK Tax Filing Season and What’s Next: Key Changes from the OBBBA By Frank Walko A

With the year 2025 individual tax filing deadline approaching, one may consider filing an extension if the return isn’t com plete, and individuals could benefit from the charitable contributions and Trump account provisions from the OBBBA. Looking ahead to 2026, individuals should also be aware of several tax law changes introduced under the One Big Beautiful Bill Act (OBBBA), including new provisions affecting charitable contributions and the creation of investment

Trump accounts originated out of the idea of starting investment accounts for young Americans. For children born between De cember 31, 2024 and January 1, 2029, the U.S. Government will give each child $1,000 to start a Trump Account. Parents and oth ers can contribute to a Trump Account up to $5,000 per beneficiary until the account beneficiary reaches the age of eighteen. Em ployers can also give up to $2,500 to a Trump Account of an employee or dependent. While these contributions wouldn’t be taxable, they would be taxed on distribution. There are a few ways taxpayers open a Trump account. First, they can do so when filing their 2025 tax return. Families can also make an election by using IRS Form 4547 to attach to their tax return or enter online at trumpaccounts.gov once the program launches, which is July 4, 2026. Contribu tions cannot be made before that date.

contributions if their filing status is single ($2,000 if married filing joint) even if they take the standard deduction. If they itemize, there is a .5% floor before any charitable contributions can be deducted. For example, if an individual itemizes and has taxable in come of $100,000, and made charitable con tributions of $2,500, they can only deduct $2,000 ($2,500 - ($100,000 x .5%)).

s the deadline to file 2025 individ ual income tax returns approaches, some taxpayers may benefit from filing an exten sion to ensure their return is complete and accurate rather than rushed. Taking addition al time can help avoid errors and ensure all relevant information is properly reported. Looking ahead to 2026, individuals should also be aware of several tax law changes in troduced under the One Big Beautiful Bill Act (OBBBA), including new provisions affecting charitable contributions and the creation of investment accounts for young Americans known as Trump accounts. Historically, one can only deduct charitable contributions if they itemize their deductions on Schedule A (mortgage interest, property tax, etc.). For the years 2026 through 2028, one can deduct up to $1,000 in charitable

accounts for young Americans known as Trump accounts.

Kingswood Tax and Business Services LLC is located at 75 North Bridge Street, Suite B, in Somerville, NJ. For all of your tax prep and business needs, they can be reached at 908-651-4659 or you can email frank@kingswoodtaxandbiz.com.

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