Higginbotham-Baldeon Enrolled Agents, Inc.

Welcome to May, and with this, the celebration of Mother’s Day. I wish you a great time with your family.  There is concern that people living abroad may miss filing their tax returns by April 14th, 2026. If you are a U.S. citizen or resident alien residing overseas or are in the military on duty outside the U.S., on the regular due date of your return, you are allowed an automatic 2-month extension to file your return without requesting an extension. If you use a calendar year, the regular due date for your return is April 15th, and the automatic extended due date is June 15th. If the due date falls on a Saturday, Sunday, or legal holiday, the due date is delayed until the next business day. If you qualify for the 2-month extension but are unable to file your return by the automatic 2-month extension date, you can request an additional extension to October 15th by filing before the automatic 2-month extension date. Even if you are allowed an extension, you will have to pay interest on any tax not paid by the regular due date of your return. This month, we bring you the May deadlines. We have the due date for non-profit organizations filing different Forms 990, 990-EZ, 990-PF, 990-N, 990-BL, 990-T for tax years ending December 31st 2025. The use of the correct Form depends on your organization’s classification and gross income. If you are not ready with your financial statements to file your non-profit tax return, you can file an extension and get an extra six months to file your tax return by November 15th, 2026. Next, it is important to mention that residential energy credits for solar panels, A/C units, windows, doors, HVAC systems, and home energy audits are no longer eligible and expired after December 31st 2025. Next, the annual gift tax exclusion for 2026 remains at $19,000, which means that you can gift up to $19,000 per recipient ($38,000 for married couples filing jointly) per year without filing the Form 709 to track up to $15 million total in your lifetime per individual under current law. Perhaps Gifts between spouses who are U.S. citizens are fully tax-exempt under the unlimited marital deduction. You can transfer cash, property, or assets to a spouse without triggering gift tax or reducing your lifetime exemption. If the spouse is not a U.S. citizen, the IRS sets a higher annual exclusion of $194,000 for 2026; any gift above this amount must be reported and may reduce your lifetime exemption. More good tax stuff next month.  Remember, this is a very brief overview.  It is your responsibility to discuss any tax and financial changes with your professional advisor for assistance in evaluating your situation.  For details and specific assistance in applying the general information in this article, call us at your earliest convenience or contact your tax advisor.   Provided by Pedro L. Baldeon, E.A., (321) 632-5726, a member of the National Society of Tax Professionals.