January 20, 2026

Understanding “Trump Accounts”: What’s Easy, What’s Risky, and Why It Matters

“Trump Accounts” are a new type of savings account created for children. They are often described as “IRAs for kids.” While the idea sounds simple, the tax rules behind them are not — especially when family members want to add their own money.

Here’s the situation as it stands today (January 2026), explained in plain terms.

The Good News: The Government’s $1,000 Is Safe and Simple

If your child qualifies for the $1,000 federal contribution (for children born between 2025 and 2028), that money is considered government funding, not a gift from you. What this means for you:

• You do not owe gift tax

• You do not need to file any gift tax forms

• There is no downside from a tax-reporting standpoint
  
  

The same applies to certain large, charity-funded contributions (like foundation programs). These are treated as general public benefits, not personal gifts.

👉 Bottom line: If the money comes from the government or a qualifying foundation, take it. It’s clean, safe, and easy.

Where Things Get Complicated: Family Contributions to Trump Accounts

Problems arise when parents, grandparents, or others want to contribute their own money to a child’s Trump Account. Here’s why:

1. The money is “locked up”

Once money goes into a Trump Account, the child cannot touch it until at least age 18. From the IRS’s perspective, that matters a lot. To qualify for normal gift tax rules, a gift usually has to be something the recipient can use right away. Because Trump Account money is locked up for many years, the IRS may treat these as “future gifts” instead of “current gifts.”

2. Why that’s a problem

If a gift is considered a “future gift”:

• The normal annual gift limit (currently $19,000) does not apply

• Any amount, even $100 or $500, can require a gift tax return (Form 709)

This doesn’t necessarily mean tax is owed — but the paperwork is mandatory.

3. Why grandparents need to be especially careful

When grandparents give money to grandchildren, special tax rules apply. If the gift doesn’t qualify for the annual exclusion (which may be the case here), it can:

• Trigger an automatic use of the grandparent’s lifetime estate and generation-skipping tax exemption

• Create reporting requirements many families never intended

In short: small gifts can create big administrative consequences.

The Hidden Cost Most People Don’t Expect for Trump Accounts

Here’s the practical reality: If a parent contributes $500 to a Trump Account and that contribution requires a gift tax filing, the cost to prepare the required tax form may be more than the gift itself. That’s why, for now, many advisors are urging caution.

What We’re Advising Our Clients Right Now re Trump Accounts

Until the IRS provides clearer rules:

✅ Do this:

• Accept the $1,000 federal contribution, if your child was born in 2025  or will be born through 2028

• Accept any qualifying foundation or charity-funded contributions

• These are clean, safe, and require no extra tax filings
  
  

⚠️ Be cautious about this

• Personal contributions from parents or grandparents

• Small gifts that could still trigger complex reporting

• Employer contributions (rules are not fully clear yet)
  
  

Waiting on Guidance from the IRS- Trump Account Gift Tax

Many professionals expect additional guidance that could simplify things, such as:

• A rule saying Trump Accounts count as normal gifts

• Clear exceptions for parents and grandparents

• Employer contribution rules that don’t create hidden tax issues

Until that happens, private gifting remains a yellow light, not a green one.

Bottom Line

• Government and charity “seed money” → safe and smart

• Private family contributions → legally allowed, but potentially expensive and paperwork-heavy

• Waiting for clearer IRS rules may save you time, money, and frustration

January 19, 2026

IRS Standard Mileage Rates for 2025 and 2026: What You Need to Know

If you use your car for work, medical visits, charitable activities, or certain moving expenses, understanding the IRS standard mileage rates can help you maximize your tax deductions. The IRS has released the rates for 2025 and 2026, and here’s a clear breakdown.

2025 Standard Mileage Rates

• Business: 70.0 cents per mile

• Medical & Moving: 21.0 cents per mile
  (Moving expense deduction is limited to certain members of the Armed Forces)

• Charitable: 14.0 cents per mile
  
  

2026 Standard Mileage Rates

• Business: 72.5 cents per mile

• Medical & Moving: 20.5 cents per mile
  (Moving expense deduction is limited to certain Armed Forces members)

• Charitable: 14.0 cents per mile
  
  

Important Reminders

1. Federal rules for unreimbursed employee expenses

• For federal tax purposes, unreimbursed employee business expenses, including mileage, are not deductible for most taxpayers.
  
  

 State-level considerations

• Some states do allow deductions for unreimbursed employee expenses, even if they are not deductible federally.

• Availability and rules vary by state, so check your state tax regulations.

2. Itemizing is required for non-business mileage

• Deductions for medical, moving, and charitable mileage can only be claimed if you itemize your deductions on your federal return.

• If you take the standard deduction, these mileage deductions are not available.

3. Additional deductible costs

• Parking fees, tolls, and the business-use portion of auto loan interest and personal property taxes can be deducted in addition to the standard mileage rate.

Why This Matters

Keeping track of your miles can add up to real tax savings:

• Driving 1,000 business miles in 2026 could give you a $725 deduction.

• Charitable or medical miles only benefit you if you itemize deductions.

• Understanding the distinction between federal and state rules can help you plan strategically for your state and federal taxes.
  
  

Pro Tips

• Maintain a detailed mileage log: include dates, miles, and purpose of the trip.

• Use apps or a simple spreadsheet to track your miles — makes tax time fast and accurate.

• Separate business, medical, and charitable mileage for proper reporting.
  
  

By keeping these rates and rules in mind, you can maximize your deductions for 2025 and 2026, whether for business, health-related travel, or charitable giving — while staying fully compliant with federal and state requirements.

January 9, 2026-

The Child Tax Credit is Bigger in 2025 — Here’s What That Means

Important changes to the Child Tax Credit that could affect your 2025 tax return, with one of  the recent changes in the "Big Beautiful Bill Act", which is now law.

If you have children, this is one change I really want you to be aware of.

Starting in 2025, the Child Tax Credit increases to $2,200 per qualifying child, and up to $1,700 of that can be refundable. In simple terms, that can mean a lower tax bill or a larger refund.

Here’s what matters most:

• Income limits remain $200,000 single / $400,000 joint

• Each qualifying child must have a valid Social Security number

• The $500 credit for other dependents is now permanent

If your family situation changed recently — or will change in 2025 — this is something we should review together.