Closing Date Set for E-Filing in 2025 by the IRS

The IRS has announced that the annual e-file shutdown for system maintenance will begin on Friday, December 26, 2025, at 11:59 a.m. Eastern Time. During this period, the IRS takes its electronic filing systems offline to update forms, security features, and programming for the upcoming tax year. E-file is expected to reopen in January 26, 2026, although this is susceptible to change as the IRS works to implement updates to filing forms for tax year 2025 by the One Big Beautiful Bill Act (OBBBA). This year’s shutdown window is notable because it is occurring later than usual and will apply to both individual and business returns on the same day.

It’s important for you to be aware that December 26 is not a tax filing deadline. For 2024 returns, the final deadline for most taxpayers with a valid extension was October 15, 2025. Filing in December or January is still allowed, but such filings are considered late. December 26 only determines whether a return can be filed electronically before the system goes offline, it does not affect penalty relief or filing status.

 

Property Taxes Expected to Increase for Minnesotans in 2026

Minnesota homeowners are facing a potentially steep property tax increase: Local governments have proposed up to $948 million in new levies for 2026—a statewide rise of about 6.9%. It is important to note that these are preliminary numbers and are susceptible to change before year-end. As a comparison, in 2025, the final statewide levy came in $63 million lower than initially proposed. Still, the numbers are clear that Minnesota property owners could collectively be asked to contribute a significant amount more in 2026 to fund local services in the state.

A major underlying cause of these proposed levy hikes is reduced federal cost sharing. The passage of the One Big Beautiful Bill Act (OBBBA) significantly lowers federal reimbursements for county-administered safety-net programs like SNAP and Medicaid, shifting more of the financial burden to local governments. Given the scale of these programs in Minnesota, counties are increasingly relying on property tax revenue to fill the gap—hence the pressure to raise levies.

With final levy decisions due by December 29, homeowners should carefully review valuation notices, verify that their homes are properly classified, and explore state relief programs. Additionally, for many taxpayers, the increase in Minnesota property taxes could yield a silver lining: Under recent changes, the SALT (state and local tax) deduction cap has risen to $40,000 for those who itemize their deductions rather than taking the standard deduction on their 2025 tax return, which would allow taxpayers to deduct more state and local taxes from their federal tax return than under the prior $10,000 limit.

 

IRS Releases 2026 Retirement Plan Adjustments

The IRS has issued the 2026 cost-of-living adjustments for various retirement-related limits. For 2026, the annual contribution limit for IRAs will increase to $7,500, up from $7,000. The IRA catch-up contribution limit for individuals age 50 and older will rise to $1,100, an increase from $1,000 for 2025.

For employees participating in 401(k), 403(b), governmental 457 plans, and the federal Thrift Savings Plan, the annual elective deferral limit will increase to $24,500, up from $23,500 for 2025. The standard catch-up contribution limit for participants age 50 and older in these plans will increase to $8,000, up from $7,500 for 2025.The enhanced catch-up contribution limit available to employees ages 60 through 63 will remain at $11,250, rather than the $8,000 standard catch-up amount noted above. Additional details regarding the 2026 retirement plan adjustments are provided in IRS Notice 2025-67.

2026 Medicare Amounts Released

On November 14, 2025, the Centers for Medicare & Medicaid Services (CMS) released the inflation-adjusted Medicare amounts for 2026, covering updated premiums, deductibles, coinsurance amounts, and Part D income-related monthly adjustment amounts. According to the CMS Fact Sheet, the Medicare Part A monthly premium for individuals with fewer than 40 quarters of Medicare-covered employment will increase to $565 for 2026 (up from $518 in 2025). Those with 30–39 quarters of covered employment will pay a reduced premium of $311 (up from $285). The Part A inpatient hospital deductible will rise to $1,736 for 2026, compared with $1,676 for 2025.

For Medicare Part B, the standard monthly premium for beneficiaries with modified AGI below $109,000 (or $218,000 for joint filers) will increase to $202.90 for 2026, up from $185 in 2025. Higher-income beneficiaries will continue to pay income-adjusted amounts. The maximum monthly Part B premium—applicable to those with modified AGI above $500,000 (or $750,000 MFJ)—will be $689.90 for 2026, compared with $628.90 in 2025. The annual Part B deductible will increase to $283 for 2026, up from $257 for 2025.