Pre-Tax Day Advice

On this final episode before Tax Day 2026, Brian Lehrer welcomes Tara Siegel Bernard of The New York Times to unpack the complexities of this year’s unusually turbulent filing season. With the IRS operating at nearly 30% reduced staffing due to recent workforce cuts, concerns about delayed refunds and increased fraud are top of mind. Yet, despite these challenges, the IRS reports processing nearly 100 million returns—only 1.6% below last year’s pace—thanks in part to automation and the push for electronic filing. Bernard highlights major tax changes for 2025, including the new $25,000 tip deduction, the expanded overtime tax exemption for those paid time-and-a-half, and a significant increase in the SALT deduction cap to $40,000 for most filers, with a sliding scale for high earners. She also addresses emerging tech issues, such as AI-driven identity verification glitches that frustrated callers like Susan from Soho, who struggled to submit her return due to mismatched name formatting. The episode concludes with guidance on charitable giving, the new $1,000 non-itemized deduction for 2026, and clarification that Wall Street bonuses are not considered tips and thus not eligible for the tip tax break.