
December 28, 2025

IRS funding and taxpayer support are linked in official budget documents, tying phone access, staffing levels, and modernization to federal funding decisions.

The SALT cap 2025 could increase from $10,000 to $40,000 under a House-passed tax bill, expanding state and local tax deductions for itemizing taxpayers.

IRS service capacity faces proposed FY 2026 funding cuts, with phone service targets and digital strategy tied to congressional budget decisions.

The Educator Expense Deduction lets eligible teachers deduct up to $300, but IRS rules require clear records and proof for classroom expenses.

IRS processing capacity pressures are rising ahead of the 2026 filing season, with TIGTA and GAO citing backlogs, staffing losses, and inventory carryover.

Mid-year estimated taxes require a June review, as income changes, quarterly deadlines, and IRS rules determine whether taxpayers face penalties or interest.