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One Big Beautiful Bill Act (OBBBA)

2026 Income Tax Calendar

2025 Canada Check List

Form T1135 Template

IRS Reporting Requirements for your Canadian Tax Free Saving Account (TFSA)

2025 U.S. Check List

What's New for Canada 2025

Canadian Tax Chapter 2026

International Treatment of Stock Options 2025-2026

<div>
<p class="western" align="center"><span style="color: #1f4e79;"><span style="font-size: xx-large;"><strong>What&rsquo;s New for the 2025 Canadian<br>Personal and Corporate Tax-Return Season</strong></span></span></p>
<p class="western" align="center"><span style="color: #333333;"><span style="font-size: medium;">Summary of key CRA and federal updates impacting 2025 T1 and T2 filings</span></span></p>
<p class="western" align="center"><span style="color: #444444;">Serbinski Partners PC | Chartered Professional Accountants (Toronto)<br>Serbinski Accounting Firms, PC | Certified Public Accountants (Chicago)</span></p>
<p class="western" align="center"><span style="color: #444444;">Tax-return season: 2025<br>Prepared: 2026</span></p>
<p class="western" align="center"><span style="color: #666666;"><span style="font-size: small;">Copyright &copy;2026 Mark T. Serbinski, CA (Ont.), CPA (Ont.), CPA (Illinois &amp; Florida)</span></span></p>
<p class="western"><br><br></p>
<center>
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<tbody>
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<p class="western"><span style="color: #1f4e79;"><span style="font-size: medium;"><strong>At a glance</strong></span></span></p>
<ul>
<li>
<p>Lowest federal personal rate reduced effective July 1, 2025 (15% to 14%); approximate 14.5% blended rate for 2025.</p>
</li>
<li>
<p>Federal brackets and most non-refundable credits indexed for inflation for 2025.</p>
</li>
<li>
<p>T1 deadlines unchanged for most individuals (April 30); automatic June 15 filing extension for self-employed (tax still due April 30).</p>
</li>
<li>
<p>Expanded trust-reporting requirements and enhanced anti-avoidance rules continue to affect compliance and documentation.</p>
</li>
<li>
<p>Capital-gains inclusion-rate changes are deferred to 2026 (planning impact remains).</p>
</li>
<li>
<p>Corporate environment broadly stable for rates; CRA electronic-filing schema/validation updates apply for certain information returns in 2025.</p>
</li>
</ul>
</td>
</tr>
</tbody>
</table>
</center>
<p class="western"><br><br></p>
<h1 class="western">1.01 Introduction</h1>
<p class="western">As the 2025 filing season approaches, Serbinski Partners PC reviews changes introduced by the Canada Revenue Agency (CRA) and the federal government impacting individual (T1) and corporate (T2) taxpayers. This summary highlights relevant updates, their implications, and practical planning considerations.</p>
<h1 class="western">1.02 Personal tax-return changes</h1>
<h2 class="western">Reduction in lowest federal marginal rate</h2>
<p class="western">Effective July 1, 2025, the lowest federal personal income-tax rate decreases from 15% to 14%. For the full 2025 taxation year, this produces an approximate blended effective rate of 14.5% for the lowest bracket.</p>
<h2 class="western">Indexation of brackets and credit amounts</h2>
<p class="western">All federal brackets and most non-refundable credits are indexed for inflation for 2025.</p>
<h2 class="western">Federal tax-bracket comparison (2024 vs 2025)</h2>
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<p class="western" align="left"><span style="font-size: small;"><span style="color: #1f4e79;"><strong>Income range</strong></span></span></p>
</td>
<td bgcolor="#e9eef5" width="144">
<p class="western" align="left"><span style="font-size: small;"><span style="color: #1f4e79;"><strong>2024 rate</strong></span></span></p>
</td>
<td bgcolor="#e9eef5" width="144">
<p class="western" align="left"><span style="font-size: small;"><span style="color: #1f4e79;"><strong>Income range</strong></span></span></p>
</td>
<td bgcolor="#e9eef5" width="143">
<p class="western" align="left"><span style="font-size: small;"><span style="color: #1f4e79;"><strong>2025 rate</strong></span></span></p>
</td>
</tr>
<tr valign="top">
<td width="143">
<p class="western" align="left"><span style="font-size: small;">Up to $55,867</span></p>
</td>
<td width="144">
<p class="western" align="left"><span style="font-size: small;">15%</span></p>
</td>
<td width="144">
<p class="western" align="left"><span style="font-size: small;">Up to $57,375</span></p>
</td>
<td width="143">
<p class="western" align="left"><span style="font-size: small;">14.5% blended (14% mid-year)</span></p>
</td>
</tr>
<tr valign="top">
<td width="143">
<p class="western" align="left"><span style="font-size: small;">$55,867 - $111,733</span></p>
</td>
<td width="144">
<p class="western" align="left"><span style="font-size: small;">20.5%</span></p>
</td>
<td width="144">
<p class="western" align="left"><span style="font-size: small;">$57,376 - $114,750</span></p>
</td>
<td width="143">
<p class="western" align="left"><span style="font-size: small;">20.5%</span></p>
</td>
</tr>
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<td width="143">
<p class="western" align="left"><span style="font-size: small;">$111,733 - $173,205</span></p>
</td>
<td width="144">
<p class="western" align="left"><span style="font-size: small;">26%</span></p>
</td>
<td width="144">
<p class="western" align="left"><span style="font-size: small;">$114,751 - $177,882</span></p>
</td>
<td width="143">
<p class="western" align="left"><span style="font-size: small;">26%</span></p>
</td>
</tr>
<tr valign="top">
<td width="143">
<p class="western" align="left"><span style="font-size: small;">$173,205 - $246,752</span></p>
</td>
<td width="144">
<p class="western" align="left"><span style="font-size: small;">29%</span></p>
</td>
<td width="144">
<p class="western" align="left"><span style="font-size: small;">$177,883 - $253,414</span></p>
</td>
<td width="143">
<p class="western" align="left"><span style="font-size: small;">29%</span></p>
</td>
</tr>
<tr valign="top">
<td width="143">
<p class="western" align="left"><span style="font-size: small;">Over $246,752</span></p>
</td>
<td width="144">
<p class="western" align="left"><span style="font-size: small;">33%</span></p>
</td>
<td width="144">
<p class="western" align="left"><span style="font-size: small;">Over $253,414</span></p>
</td>
<td width="143">
<p class="western" align="left"><span style="font-size: small;">33%</span></p>
</td>
</tr>
</tbody>
</table>
<p class="western"><br><br></p>
<h2 class="western">Key dates</h2>
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<p class="western" align="left"><span style="font-size: small;"><span style="color: #1f4e79;"><strong>Item</strong></span></span></p>
</td>
<td bgcolor="#e9eef5" width="301">
<p class="western" align="left"><span style="font-size: small;"><span style="color: #1f4e79;"><strong>2025 filing season</strong></span></span></p>
</td>
</tr>
<tr valign="top">
<td width="301">
<p class="western" align="left"><span style="font-size: small;">T1 filing deadline (most individuals)</span></p>
</td>
<td width="301">
<p class="western" align="left"><span style="font-size: small;">April 30, 2025</span></p>
</td>
</tr>
<tr valign="top">
<td width="301">
<p class="western" align="left"><span style="font-size: small;">T1 filing deadline (self-employed and spouses/common-law partners)</span></p>
</td>
<td width="301">
<p class="western" align="left"><span style="font-size: small;">June 15, 2025 (automatic extension)</span></p>
</td>
</tr>
<tr valign="top">
<td width="301">
<p class="western" align="left"><span style="font-size: small;">Balance due for most individuals</span></p>
</td>
<td width="301">
<p class="western" align="left"><span style="font-size: small;">April 30, 2025 (interest accrues after April 30)</span></p>
</td>
</tr>
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<td width="301">
<p class="western" align="left"><span style="font-size: small;">T2 corporate return due date</span></p>
</td>
<td width="301">
<p class="western" align="left"><span style="font-size: small;">Six months after fiscal year-end</span></p>
</td>
</tr>
</tbody>
</table>
<p class="western"><br><br></p>
<h2 class="western">Automatic extension for self-employed individuals</h2>
<p class="western">Self-employed taxpayers and their spouses/common-law partners automatically qualify for an extended T1 filing deadline of June 15.</p>
<h3 class="western">How the extension works</h3>
<p class="western">Under the Income Tax Act, where either the individual or their spouse/common-law partner carries on a business in the year, the return is generally considered timely if filed by June 15.</p>
<h3 class="western">Important reminder</h3>
<p class="western">All tax balances remain due by April 30. Interest is charged after April 30 even if the return is filed under the extended deadline.</p>
<h2 class="western">Additional personal measures</h2>
<ul>
<li>
<p>Expanded trust-reporting requirements.</p>
</li>
<li>
<p>Enhanced anti-avoidance rules.</p>
</li>
<li>
<p>Proposed capital-gains inclusion-rate changes deferred to 2026.</p>
</li>
</ul>
<p class="western"><br><br></p>
<h1 class="western">Corporate tax-return changes</h1>
<h2 class="western">Filing and payment deadlines</h2>
<p class="western">Corporate T2 returns remain due six months after fiscal year-end. Instalment requirements remain unchanged.</p>
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<p class="western"><span style="color: #1f4e79;"><strong>Electronic filing changes (effective 2025)</strong></span></p>
<p class="western"><span style="font-size: small;">Beginning in 2025, updated CRA schema/XML and new validation mechanisms apply for certain information returns.</span></p>
</td>
</tr>
</tbody>
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</center>
<p class="western"><br><br></p>
<h2 class="western">Corporate tax-rate environment</h2>
<p class="western">No major changes to the federal corporate rate are expected for 2025; however, provincial differences and newly introduced credits may still influence planning.</p>
<h2 class="western">Additional corporate measures</h2>
<ul>
<li>
<p>Updated CRA audit-selection criteria.</p>
</li>
<li>
<p>Deferred capital-gains inclusion-rate increases until 2026.</p>
</li>
</ul>
<p class="western"><br><br></p>
<h1 class="western">1.03 Planning considerations for 2025</h1>
<ul>
<li>
<p>Review 2025 projected income with attention to mid-year rate changes.</p>
</li>
<li>
<p>Reassess instalments, payroll deductions, and credit eligibility.</p>
</li>
<li>
<p>Ensure systems comply with updated electronic-filing standards.</p>
</li>
<li>
<p>Strengthen documentation for deductions and credits.</p>
</li>
<li>
<p>Begin organizing tax information early to avoid penalties and delays.</p>
</li>
</ul>
<p class="western"><br><br></p>
<h1 class="western">1.04 Conclusion</h1>
<p class="western">The 2025 tax season includes meaningful changes for individual and corporate taxpayers. Serbinski Partners PC remains committed to providing accurate preparation, professional compliance review, and strategic advice aligned with the evolving tax environment.</p>
<p class="western"><br><br></p>
<h2 class="western">Professional notice and disclaimer</h2>
<p><span style="color: #555555;"><span style="font-size: small;">This summary is designed to provide a concise overview of the subjects addressed and may not be complete. Reference should be made to original legislation prior to acting on any matter, and professional advice should also be obtained.</span></span></p>
<p><span style="color: #555555;"><span style="font-size: small;">Please contact us for a confidential review of your individual situation.</span></span></p>
<p><span style="color: #555555;"><span style="font-size: small;">To ensure compliance with requirements imposed by the Internal Revenue Service, we inform you that any tax advice contained in the body of this document was not intended or written to be used, and cannot be used, by the recipient (a) for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions and (b) for the purpose of promoting, marketing, or recommending any tax-related matters addressed within to another party.</span></span></p>
<p class="western"><br><br></p>
<p class="western"><strong>Mark T. Serbinski, CA, CPA</strong></p>
<p><span style="color: #555555;"><span style="font-size: small;">Serbinski Accounting Firms, PC | Serbinski Partners PC</span></span></p>
<p><span style="color: #555555;"><span style="font-size: small;">1-888-US TAXES (878-2937) | www.serbinski.com</span></span></p>
</div>

<div>
<p><span style="color: #1f4e79;"><span style="font-size: xx-large;"><strong>What's New for U.S. Personal and Corporate Tax Filing</strong></span></span></p>
<p><span style="color: #1f4e79;"><span style="font-size: large;"><em>2025 and 2026 Filing Seasons</em></span></span></p>
<p class="western">Prepared by Mark T. Serbinski, CA (Ont.), CPA (Ont.), CPA (Illinois &amp; Florida)</p>
<p class="western">Serbinski Accounting Firms, PC &bull; Serbinski Partners PC</p>
<p class="western">1-888-US TAXES (878-2937) &bull; serbinski.com</p>
<p><span style="color: #555555;"><span style="font-size: small;">Copyright &copy;2026 by Mark T. Serbinski CA (Ont.), CPA (Ont.), CPA (Illinois &amp; Florida). Mr. Serbinski is a Chartered Accountant/Chartered Professional Accountant practicing in Ontario and a partner in the firm of Serbinski Partners PC, Chartered Professional Accountants, Toronto, Ontario, as well as a Certified Public Accountant licensed in Illinois and Florida, and a practitioner in the firm of Serbinski Accounting Firms, PC, Certified Public Accountants in Chicago, Illinois. Admitted to practice before the Internal Revenue Service, Mr. Serbinski practices international tax and acts as a consultant to the profession. Further information is available at https://www.serbinski.com.</span></span></p>
<h1 class="heading-1-modern-western">At a glance</h1>
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<p class="western"><span style="color: #ffffff;"><span style="font-size: small;"><strong>2025 filing season (individual + corporate)</strong></span></span></p>
</td>
<td bgcolor="#1f4e79" width="308">
<p class="western"><span style="color: #ffffff;"><span style="font-size: small;"><strong>2026 changes (effective for 2026 tax year)</strong></span></span></p>
</td>
</tr>
<tr valign="top">
<td width="308">
<p class="western"><br><br></p>
<ul>
<li>
<p><span style="font-size: small;">Tip income exclusion up to $25,000 (phaseouts apply).</span></p>
</li>
<li>
<p><span style="font-size: small;">Overtime income exclusion up to $12,500 Single / $25,000 MFJ (phaseouts apply).</span></p>
</li>
<li>
<p><span style="font-size: small;">Updated 2025 federal brackets.</span></p>
</li>
<li>
<p><span style="font-size: small;">New senior deduction up to $6,000 (phaseouts apply).</span></p>
</li>
<li>
<p><span style="font-size: small;">Temporary SALT cap increase to $40,000 MFJ (income-based phaseout).</span></p>
</li>
<li>
<p><span style="font-size: small;">Business updates: 100% bonus depreciation reinstated; R&amp;D expensing restored; interest limit eased (EBITDA); Section 199A made permanent.</span></p>
</li>
</ul>
</td>
<td width="308">
<p class="western"><br><br></p>
<ul>
<li>
<p><span style="font-size: small;">Child Tax Credit increases to $2,200 per qualifying child (phaseout thresholds apply).</span></p>
</li>
<li>
<p><span style="font-size: small;">Above-the-line charitable deduction for non-itemizers: $1,000 Single / $2,000 MFJ.</span></p>
</li>
<li>
<p><span style="font-size: small;">Itemizers: charitable deduction limited to amounts over 0.5% of AGI; deduction capped at 35% for high earners.</span></p>
</li>
<li>
<p><span style="font-size: small;">Most energy-efficiency and EV credits expire after 12/31/2025.</span></p>
</li>
<li>
<p><span style="font-size: small;">Dependent-Care FSA increases from $5,000 to $7,500.</span></p>
</li>
<li>
<p><span style="font-size: small;">New 1% excise tax on certain electronic foreign transfers.</span></p>
</li>
</ul>
</td>
</tr>
</tbody>
</table>
<p class="western"><br><br></p>
<p class="western"><br><br></p>
<h1 class="heading-1-modern-western">Contents</h1>
<ul>
<li>
<p>1.01 Introduction</p>
</li>
<li>
<p>1.02 Personal tax-return changes (2025 filing season)</p>
</li>
</ul>
<ul>
<li>
<p>- Tip and overtime exclusions (OBBBA)</p>
</li>
<li>
<p>- Federal bracket comparison (2024 vs 2025)</p>
</li>
<li>
<p>- Senior deduction</p>
</li>
<li>
<p>- SALT deduction increase (temporary)</p>
</li>
<li>
<p>Corporate tax-return changes (2025)</p>
</li>
</ul>
<ul>
<li>
<p>1.03 Changes beginning in 2026</p>
</li>
<li>
<p>1.04 Planning considerations</p>
</li>
<li>
<p>1.05 Conclusion</p>
</li>
</ul>
<ul>
<li>
<p>Disclosures and IRS notice</p>
</li>
</ul>
<p class="western"><br><br></p>
<h1 class="heading-1-modern-western">1.01 Introduction</h1>
<p class="western">As the 2025 and 2026 filing seasons approach, Serbinski Accounting Firms PC reviews changes introduced by the Internal Revenue Service (IRS) and the federal government that impact individual and corporate taxpayers. This summary identifies relevant updates, their phaseout levels, explanations for the changes, and planning considerations.</p>
<h1 class="heading-1-modern-western">1.02 Personal tax-return changes (2025 filing season)</h1>
<p class="western">The One Big Beautiful Bill Act (OBBBA) introduces significant personal tax updates beginning in 2025.</p>
<h2 class="heading-2-modern-western">Reduction in certain income categories</h2>
<p class="western">Beginning in 2025, new exclusions apply to certain tip and overtime income. Phaseouts are based on income and filing status.</p>
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<td bgcolor="#f2f2f2" width="146">
<p class="western"><span style="color: #1f4e79;"><span style="font-size: small;"><strong>Category</strong></span></span></p>
</td>
<td bgcolor="#f2f2f2" width="147">
<p class="western"><span style="color: #1f4e79;"><span style="font-size: small;"><strong>Maximum exclusion</strong></span></span></p>
</td>
<td bgcolor="#f2f2f2" width="147">
<p class="western"><span style="color: #1f4e79;"><span style="font-size: small;"><strong>Phaseout - Single</strong></span></span></p>
</td>
<td bgcolor="#f2f2f2" width="146">
<p class="western"><span style="color: #1f4e79;"><span style="font-size: small;"><strong>Phaseout - MFJ</strong></span></span></p>
</td>
</tr>
<tr valign="top">
<td width="146">
<p class="western"><span style="font-size: small;">Tip income</span></p>
</td>
<td width="147">
<p class="western"><span style="font-size: small;">Up to $25,000</span></p>
</td>
<td width="147">
<p class="western"><span style="font-size: small;">$100,000-$150,000</span></p>
</td>
<td width="146">
<p class="western"><span style="font-size: small;">$200,000-$300,000</span></p>
</td>
</tr>
<tr valign="top">
<td width="146">
<p class="western"><span style="font-size: small;">Overtime income</span></p>
</td>
<td width="147">
<p class="western"><span style="font-size: small;">Up to $12,500 (Single) / $25,000 (MFJ)</span></p>
</td>
<td width="147">
<p class="western"><span style="font-size: small;">$125,000-$175,000</span></p>
</td>
<td width="146">
<p class="western"><span style="font-size: small;">$250,000-$350,000</span></p>
</td>
</tr>
</tbody>
</table>
<p class="western"><br><br></p>
<h2 class="heading-2-modern-western">Federal tax-bracket comparison</h2>
<p class="western">Below is a summary of the 2024 and 2025 federal bracket thresholds as presented in this update.</p>
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<tbody>
<tr valign="top">
<td bgcolor="#f2f2f2" width="199">
<p class="western"><span style="color: #1f4e79;"><span style="font-size: small;"><strong>Rate</strong></span></span></p>
</td>
<td bgcolor="#f2f2f2" width="200">
<p class="western"><span style="color: #1f4e79;"><span style="font-size: small;"><strong>2024 (taxable income)</strong></span></span></p>
</td>
<td bgcolor="#f2f2f2" width="199">
<p class="western"><span style="color: #1f4e79;"><span style="font-size: small;"><strong>2025 (taxable income)</strong></span></span></p>
</td>
</tr>
<tr valign="top">
<td width="199">
<p class="western"><span style="font-size: small;">10%</span></p>
</td>
<td width="200">
<p class="western"><span style="font-size: small;">Up to $11,600</span></p>
</td>
<td width="199">
<p class="western"><span style="font-size: small;">Up to $12,000</span></p>
</td>
</tr>
<tr valign="top">
<td width="199">
<p class="western"><span style="font-size: small;">12%</span></p>
</td>
<td width="200">
<p class="western"><span style="font-size: small;">$11,601-$47,150</span></p>
</td>
<td width="199">
<p class="western"><span style="font-size: small;">$12,001-$48,700</span></p>
</td>
</tr>
<tr valign="top">
<td width="199">
<p class="western"><span style="font-size: small;">22%</span></p>
</td>
<td width="200">
<p class="western"><span style="font-size: small;">$47,151-$100,525</span></p>
</td>
<td width="199">
<p class="western"><span style="font-size: small;">$48,701-$103,500</span></p>
</td>
</tr>
<tr valign="top">
<td width="199">
<p class="western"><span style="font-size: small;">24%</span></p>
</td>
<td width="200">
<p class="western"><span style="font-size: small;">$100,526-$191,950</span></p>
</td>
<td width="199">
<p class="western"><span style="font-size: small;">$103,501-$195,900</span></p>
</td>
</tr>
<tr valign="top">
<td width="199">
<p class="western"><span style="font-size: small;">32%</span></p>
</td>
<td width="200">
<p class="western"><span style="font-size: small;">$191,951-$243,725</span></p>
</td>
<td width="199">
<p class="western"><span style="font-size: small;">$195,901-$249,500</span></p>
</td>
</tr>
<tr valign="top">
<td width="199">
<p class="western"><span style="font-size: small;">35%</span></p>
</td>
<td width="200">
<p class="western"><span style="font-size: small;">$243,726-$609,350</span></p>
</td>
<td width="199">
<p class="western"><span style="font-size: small;">$249,501-$618,300</span></p>
</td>
</tr>
<tr valign="top">
<td width="199">
<p class="western"><span style="font-size: small;">37%</span></p>
</td>
<td width="200">
<p class="western"><span style="font-size: small;">Over $609,350</span></p>
</td>
<td width="199">
<p class="western"><span style="font-size: small;">Over $618,300</span></p>
</td>
</tr>
</tbody>
</table>
<p class="western"><br><br></p>
<h2 class="heading-2-modern-western">Senior deduction</h2>
<p class="western">A new senior deduction of up to $6,000 is available beginning in 2025.</p>
<p class="western">Phaseout ranges:</p>
<ul>
<li>
<p>Single: $75,000-$95,000</p>
</li>
<li>
<p>Married filing jointly (MFJ): $150,000-$190,000</p>
</li>
</ul>
<h2 class="heading-2-modern-western">SALT deduction increase (temporary)</h2>
<p class="western">For 2025, the SALT deduction limit increases to $40,000 for married filing jointly (MFJ).</p>
<p class="western">Phaseout begins at $500,000 AGI and ends at $700,000 AGI.</p>
<h1 class="heading-1-modern-western">Corporate tax-return changes (2025)</h1>
<p class="western">Important corporate measures effective for 2025 include:</p>
<ul>
<li>
<p>Permanent reinstatement of 100% bonus depreciation</p>
</li>
<li>
<p>R&amp;D expensing fully restored</p>
</li>
<li>
<p>Interest-deduction limitations eased (EBITDA standard)</p>
</li>
<li>
<p>Section 199A made permanent</p>
</li>
</ul>
<h1 class="heading-1-modern-western">1.03 Changes beginning in 2026</h1>
<p class="western">The 2026 tax year introduces additional adjustments under the OBBBA.</p>
<h2 class="heading-2-modern-western">Child Tax Credit (CTC)</h2>
<p class="western">The credit increases to $2,200 per qualifying child.</p>
<p class="western">Phaseout thresholds: $200,000 Single; $400,000 MFJ.</p>
<h2 class="heading-2-modern-western">Charitable-contribution deduction</h2>
<p class="western">Above-the-line deduction for non-itemizers:</p>
<ul>
<li>
<p>$1,000 Single</p>
</li>
<li>
<p>$2,000 MFJ</p>
</li>
</ul>
<p class="western">Itemizers: only charitable amounts exceeding 0.5% of AGI qualify; deduction capped at 35% for high earners.</p>
<h2 class="heading-2-modern-western">Energy and EV credits end after 2025</h2>
<p class="western">Most energy-efficiency and EV credits expire December 31, 2025. Taxpayers planning upgrades or purchases should act before year-end.</p>
<h2 class="heading-2-modern-western">Dependent-Care FSA increase</h2>
<p class="western">Beginning in 2026, Dependent-Care FSAs rise from $5,000 to $7,500.</p>
<h2 class="heading-2-modern-western">International transfer excise tax</h2>
<p class="western">A new 1% excise tax applies to certain electronic foreign transfers beginning in 2026.</p>
<h1 class="heading-1-modern-western">1.04 Planning considerations</h1>
<p class="western">Practical planning steps to consider:</p>
<ul>
<li>
<p>Monitor income to avoid unintended phaseout impacts.</p>
</li>
<li>
<p>Review timing for energy credits expiring after 2025.</p>
</li>
<li>
<p>Businesses should revisit depreciation and R&amp;D strategies.</p>
</li>
<li>
<p>Maintain proper documentation for all new deductions.</p>
</li>
<li>
<p>Schedule a year-end planning appointment.</p>
</li>
</ul>
<p class="western"><br><br></p>
<table width="642" cellspacing="0" cellpadding="7"><colgroup><col width="626"> </colgroup>
<tbody>
<tr>
<td valign="top" bgcolor="#f2f2f2" width="626">
<p><span style="color: #1f4e79;"><strong>Recommended next steps</strong></span></p>
</td>
</tr>
<tr>
<td valign="top" width="626">
<p class="western"><br><br></p>
<ul>
<li>
<p>Confirm filing status and projected AGI early (phaseouts appear in multiple provisions).</p>
</li>
<li>
<p>If planning EV/energy upgrades, consider completing qualifying purchases before 12/31/2025.</p>
</li>
<li>
<p>For closely held businesses, model depreciation, interest-limitation, and R&amp;D treatment under current-year projections.</p>
</li>
</ul>
</td>
</tr>
</tbody>
</table>
<h1 class="heading-1-modern-western">1.05 Conclusion</h1>
<p class="western">The 2025-2026 tax years introduce meaningful changes for individual and corporate taxpayers. Serbinski Accounting Firms PC remains committed to providing accurate preparation, professional compliance review, and strategic guidance aligned with the evolving U.S. tax environment.</p>
<p class="western">Please contact us for a confidential review of your individual situation.</p>
<p class="western"><br><br></p>
<h2 class="heading-2-modern-western">Disclosures</h2>
<p><span style="color: #555555;"><span style="font-size: small;">This summary has been designed to provide a concise overview of the subjects addressed, and may not be complete. Reference should be made to original legislation prior to acting on any matter, and professional advice should also be obtained.</span></span></p>
<p><span style="color: #555555;"><span style="font-size: small;">To ensure compliance with requirements imposed by the Internal Revenue Service, we inform you that any tax advice contained in the body of this document was not intended or written to be used, and cannot be used, by the recipient (a) for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions and (b) for the purpose of promoting, marketing, or recommending any tax-related matters addressed within to another party.</span></span></p>
<p class="western"><br><br></p>
<p class="western"><strong>Mark T. Serbinski, CA, CPA</strong></p>
<table width="642" cellspacing="0" cellpadding="7"><colgroup><col width="306"> <col width="306"> </colgroup>
<tbody>
<tr valign="top">
<td width="306">
<p class="western"><span style="color: #1f4e79;"><span style="font-size: small;"><strong>Serbinski Accounting Firms, PC</strong></span></span></p>
</td>
<td width="306">
<p class="western"><span style="color: #1f4e79;"><span style="font-size: small;"><strong>Serbinski Partners PC</strong></span></span></p>
</td>
</tr>
<tr valign="top">
<td width="306">
<p class="western"><span style="font-size: small;">CERTIFIED PUBLIC ACCOUNTANTS</span></p>
</td>
<td width="306">
<p class="western"><span style="font-size: small;">CHARTERED PROFESSIONAL ACCOUNTANTS</span></p>
</td>
</tr>
</tbody>
</table>
<p><span style="color: #555555;"><span style="font-size: small;">1-888-US TAXES (878-2937) &bull; serbinski.com</span></span></p>
</div>

What's New for US 2025-2026


      The IRS has issued Rev Proc 2020-17 on March 2, 2020 which eliminates the requirement to file forms 3520 and 3520-A for certain foreign trusts.  The <a href="https://www.serbinski.com/reporting-relief-foreign-trusts-forms-3520-3520a">new rules</a> further set out procedures to obtain refunds of penalties previously assessed for failure to file these forms for any open year, if conditions are met. 
    

U.S. Citizens Holding RESP Exemption from Reporting on Forms 3520 and 3520A for Certain Foreign Trusts, and Retroactive Penalty Relief.

<div>
<div>The following deadline dates apply to Canadian returns which are required to be filed during 2026. To avoid penalties all returns must be postmarked by the due date specified:</div>
<div>&nbsp;</div>
<div><span style="text-decoration: underline;"><strong>Individuals</strong></span></div>
<div>&nbsp;</div>
<div><strong>April 30, 2026</strong><br>
<ul>
<li>Deadline to file 2025 personal income tax returns to the CRA and Revenue Quebec.</li>
<li>Deadline for payment of 2025 personal taxes payable to the CRA or Revenue Quebec.</li>
<li>Deadline to file Form T1135, Foreign Income Verification Statement for 2025.</li>
<li>Deadline for payment of 2025 personal taxes for self-employed individuals and their spouses to the CRA or Revenue Quebec.</li>
<li>Deadline to file the Underused Housing Tax (UHT) return, for 2025<em>.</em></li>
</ul>
</div>
<div><strong>June 15, 2026</strong><br>
<ul>
<li>Deadline to file 2025 personal income tax returns to the CRA and Revenue Quebec for self-employed individuals and their spouses.</li>
<li>Deadline to file 2025 Form T1135 for self-employed individuals and their spouses.</li>
<li>Deadline to file 2025 GST/HST annual return for self-employed individuals with a December 31st year-end.</li>
</ul>
<strong>June 30, 2026</strong><br>
<ul>
<li>Deadline to file 2025 Form T1159, Income Tax Return for Electing under Section 216, if Form NR6 has been filed and approved for the year.</li>
</ul>
<strong>October 31, 2026</strong><br>
<ul>
<li>Deadline to file 2025 Form T1134, Information Return Relating to Controlled and Non-Controlled Foreign, for individuals.</li>
</ul>
</div>
<div>&nbsp;</div>
<div><strong>Payroll Withholding Taxes:</strong></div>
<div>&nbsp;</div>
<div><em>Final payment date for 2025 payroll source deduction to CRA is <strong>January 15, 2026.</strong></em></div>
<div>&nbsp;</div>
<div><br><strong>Slips and Summary Information Returns:</strong></div>
<div>
<ol style="list-style-type: lower-alpha;">
<li style="font-style: italic;"><em>T4, T4A, T4A-NR and T5 annual information returns &ndash; <strong>February 28, 2026</strong></em></li>
<li style="font-style: italic;"><em>T3 annual information returns &ndash; <strong>March 30, 2026</strong></em></li>
<li style="font-style: italic;"><em>NR4 annual information returns &ndash; <strong>March 31, 2026</strong></em></li>
</ol>
</div>
<div>&nbsp;</div>
<div><strong>Registered Retirement Savings Plan:</strong></div>
<div>&nbsp;</div>
<div><em>An RRSP contribution must be made by <strong>March 03, 2026</strong> to be considered deductible for 2025. The 2025 RRSP maximum deduction limit is $32,490.</em></div>
<div>&nbsp;</div>
<div>&nbsp;</div>
<div><strong>Quarterly Personal Tax Installments for 2026:</strong></div>
<div style="padding-left: 40px;"><em><strong>March 15, 2026</strong> &ndash; deadline for the first quarter payment</em></div>
<div style="padding-left: 40px;"><em><strong>June 15, 2026</strong> &ndash; deadline for the second quarter payment</em></div>
<div style="padding-left: 40px;"><em><strong>September 15, 2026</strong> &ndash; deadline for the third quarter payment</em></div>
<div style="padding-left: 40px;"><em><strong>December 15, 2026</strong> &ndash; deadline for the fourth quarter payment</em></div>
<div>&nbsp;</div>
<div>&nbsp;</div>
<div><strong>Deceased Taxpayers:</strong></div>
<div>&nbsp;</div>
<div>Deadline for filing of the returns is:</div>
<div>
<ol style="list-style-type: lower-alpha;">
<li style="font-style: italic;"><em>Death January 1 to October 31 - April 30th in year following death;</em></li>
<li style="font-style: italic;"><em>Death November 1 to December 31 - Six months after date of death.</em></li>
</ol>
</div>
<div>&nbsp;</div>
<div>&nbsp;</div>
<div><span style="text-decoration: underline;"><strong>Corporation Income Tax Return (T2)</strong></span></div>
<div>
<ol style="list-style-type: lower-alpha;">
<li>Payment of expected tax due - Three months after the fiscal year-end date.</li>
<li>Filing of tax return &ndash;Six months after the fiscal year-end date.</li>
<li>Filing of Form T1135, Foreign Income Verification Statement - Same filing due date as corporation&rsquo;s income tax return.</li>
<li>Filing of Form T1134, Information Return Relating to Controlled and Not-Controlled Foreign Affiliates &ndash;Ten months after the fiscal year-end date.</li>
</ol>
</div>
<div>&nbsp;</div>
<div><span style="text-decoration: underline;"><strong>Trust Returns (T3)</strong></span></div>
<div><br><em>T3 Trust income tax returns and Schedule 15 (Beneficial Ownership Information of a Trust) &ndash; 90 days after the year-end date.&nbsp;</em></div>
<div><em>For tax years ending after December 30, 2025 &ndash; March 31, 2026.</em></div>
</div>

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