Happy 250th Birthday, America! - July Newsletter

From the Desk of Carol Sellers, CPA Sellers CPA LLC https://sellerscpa.net 108 W Cusseta St, Dadeville, AL 36853 (256) 825-8259

Dear Valued Clients and Friends,

Happy 250th Birthday, America! 

This month our nation celebrates its Semiquincentennial — 250 years since the signing of the Declaration of Independence on July 4, 1776. From the tall ships of Sail250 in New York Harbor to fireworks reflecting off Lake Martin right here at home, Americans everywhere are marking a milestone few nations ever reach. Here in Dadeville, we at Sellers CPA are proud to celebrate with you — and proud to help you keep more of the freedom our founders fought for: the fruits of your own labor.

Fittingly, July 4, 2026 also marked the first anniversary of the One Big Beautiful Bill Act (OBBBA), signed into law on Independence Day 2025. One year in, its provisions are now fully woven into your 2026 tax picture, and mid-year is the perfect time to make sure you're capturing every benefit. This July edition covers the OBBBA at one year, critical July deadlines you cannot afford to miss, the latest Alabama updates, and a mid-year planning checklist to keep your second half of 2026 on track.

Quote to ponder: "A republic, if you can keep it." – Benjamin Franklin, 1787.

Two hundred fifty years on, keeping it still starts with informed, engaged citizens — and that includes understanding your taxes.

One Year of the OBBBA: The Freedoms Now Baked Into Your 2026 Taxes

The OBBBA remains the most significant tax legislation since the 2017 Tax Cuts and Jobs Act, and its provisions are in full effect for tax year 2026:

• Permanent tax brackets: The seven-bracket structure (10% through 37%) is here to stay, with 2026 income thresholds inflation-adjusted by the IRS.

• Higher standard deductions: Approximately $16,100 single / $32,200 married filing jointly / $24,150 head of household for 2026 — plus the new above-the-line charitable deduction ($1,000 single / $2,000 joint) for non-itemizers, effective this year.

• Family relief: The Child Tax Credit stands at $2,200 per qualifying child with improved phaseout thresholds.

• Senior bonus deduction: Taxpayers 65 and older may claim an additional $6,000 deduction (income phaseouts apply) through 2028.

• Tips and overtime deductions: Federal deductions for qualified tips and overtime pay continue to reward America's service and hourly workers.

• SALT cap relief: The expanded state and local tax deduction cap (up to $40,000 in many analyses) continues to benefit Alabama homeowners.

• Business incentives: 100% bonus depreciation and expanded Section 179 expensing remain powerful tools for capital investment — a mid-year purchase decision now can shape your entire 2026 return.

• HSA expansion: Since January 1, 2026, bronze and catastrophic health plans qualify as HSA-compatible, and direct primary care arrangements enjoy favorable treatment.

Quote to ponder: "We must all hang together, or assuredly we shall all hang separately." – Benjamin Franklin, July 4, 1776.

Good planning works the same way — every piece of your financial picture is stronger when coordinated together.

Critical July Deadlines — Don't Let Independence Day Distract You

• July 10, 2026 – COVID-era refund claims: The National Taxpayer Advocate has warned that most taxpayers potentially eligible for COVID-19 disaster relief refunds must file a refund claim, amended return, or protective claim on or before July 10, 2026 to preserve their rights. If you think you may qualify, contact us immediately — this window closes fast.

• July 31, 2026 – Retirement plan returns: Form 5500 series returns for 2025 calendar-year retirement and employee benefit plans are due. Business owners with 401(k) or similar plans, take note.

• September 15, 2026 – Q3 estimated taxes: Third-quarter estimated payments are around the corner. If your income has shifted this year — new deductions, a strong first half, a business sale — a mid-year projection now prevents an ugly surprise later.

• October 15, 2026 – Extension deadline: If you filed an extension for your 2025 return, don't wait until fall. Summer is the smart time to finish.

Alabama Updates: Sweet Home Savings

• Grocery tax holiday has ended: The state's 2% sales tax suspension on groceries ran May 1 through June 30, 2026, and has now expired. The state portion is back on your grocery bill, so adjust household budgets accordingly.

• Overtime deduction continues: Alabama's individual income tax deduction of up to $1,000 per taxpayer for qualified overtime compensation (2026–2028) remains available — hourly workers, keep those pay stubs organized.

• Small business TPP exemption: The $100,000 tangible personal property tax exemption continues to relieve equipment-heavy small businesses, with no filing requirement for qualifying operations.

• Mobile workforce safe harbor: Out-of-state employees working 30 or fewer days per year in Alabama remain exempt from Alabama income tax and withholding — welcome relief for traveling professionals and their employers.

Quote to ponder: "The harvest of freedom must be cultivated season by season."

The same is true of tax savings — they're planned, not stumbled upon.

Mid-Year Planning Checklist: Declare Your Financial Independence

With exactly half of 2026 behind us, now is the time to:

• Run a mid-year tax projection to true-up withholding and estimated payments.

• Maximize retirement contributions at the higher 2026 limits, and evaluate Roth conversion opportunities while brackets remain favorable.

• Time business equipment purchases to capture 100% bonus depreciation before year-end.

• Coordinate the Child Tax Credit, senior bonus deduction, and charitable giving strategies for maximum household benefit.

• Keep meticulous digital asset records — Form 1099-DA broker reporting is fully in effect.

• Review your 2025 extension status and gather documents now, not in October.

As we celebrate 250 years of American independence, there's no better time to take charge of your own financial independence. Our team at Sellers CPA provides personalized, year-round strategies tailored to your situation. Call Carol Sellers at (256) 825-8259 or email carol@sellerscpa.net to schedule a paid mid-year consultation — and enter the second half of 2026 with confidence.

Thank you for trusting Sellers CPA with your financial journey. Happy 250th, America — and here's to a prosperous, tax-efficient summer!

Warm regards,

Carol Sellers, CPA Owner, Sellers CPA LLC Dadeville, Alabama

This newsletter is for informational purposes only and does not constitute tax or legal advice. Consult your CPA or tax professional for advice specific to your situation. Tax laws are complex and subject to change.