November 5, 2025
For Everyone
IRS inflation updates. The release includes the inflation updates for 2026, recently published by the IRS in Revenue Procedure 2025-32. The updates include the 2026 values for:
- Tax brackets (the rates are not automatically adjusted, but brackets are).
- Standard deduction (and the extra standard amounts for individuals who are blind or over age 65).
- Child Tax Credit (does not change from 2025 to 2026).
- Child Care Credit.
- Earned Income Credit parameters.
- Qualified Business Income thresholds
- Alternative minimum tax parameters.
- Student Loan Interest Deduction phase-out thresholds
These changes affect 2026 results. We had previously made estimates of the inflation adjustments, so the changes from prior 2026 results are minimal.
State Specific
California
- Spousal support. Starting in 2026, spousal support will no longer be taxable or deductible for California state tax purposes. While nothing is changing immediately, the software is now coded to change its calculation to not make spousal support deductible, starting on January 1, 2026. You may override this calculation at the top of the screen where you enter child and spousal support data, as shown below.
- Judicial Council forms. We have updated Judicial Council forms FL-145, FL-165, FL-300, FL-306, FL-312, FL-320, FL-340, FL-341(B), FL-343, and CIV-050.
Massachusetts
- Investments. Adding a large number of investments will no longer cause the software to log out.
New Jersey
- Blank CIS. On the “Print CIS” page, the link to the blank CIS now links to the most recent one.