Investing

Brookfield Asset Management will spend as much as $5 billion to deploy Bloom Energy’s fuel cells.
Bloom’s fuel cells provide onsite power that can be deployed quickly because they do not rely on a connection to the electric grid.

Shares of Bloom Energy soared early Monday after striking a deal with Brookfield Asset Management to install fuel cells in artificial intelligence data centers.
Brookfield will spend up to $5 billion to deploy Bloom Energy’s technology, the first investment in its strategy to support big AI data centers with power and computing infrastructure. Bloom’s fuel cells are “fuel-flexible” and can run on natural gas, biogas or hydrogen, the company says.

Brookfield and Bloom are collaborating to design and build what they are calling “AI factories” around the the world, including a site in Europe that will be unveiled before the end of the year.
Shares of Bloom Energy jumped almost 30% in early trading. Bloom’s fuel cells provide onsite power that can be quickly installed because they don’t rely on a connection to the electric grid.
Bloom has already positioned hundreds of megawatts of fuel cells through deals with utilities including American Electric Power and data centers developers such as Equinix and Oracle, according to the company.
The AI industry’s data center plans are growing in scale. Nvidia and OpenAI, for example, recently announced a partnership that aims to build 10 gigawatts of data centers, equivalent to the power consumed by New York City at the height of summer.
But AI companies’ plans are butting up against an aging U.S. electric grid that is often slow to provide additional power capacity. Data centers also threaten to raise electricity prices for residential customers.

Deploying power solutions “behind-the-meter,” or off the grid, “are essential to closing the grid gap for AI factories,” said Brookfield’s global head of AI infrastructure Sikander Rashid.
“AI infrastructure must be built like a factory—with purpose, speed, and scale,” Bloom Energy CEO KR Sridhar said.
Nvidia CEO Jensen Huang told CNBC last week that the AI industry will need to build power off the electric grid to quickly meet demand and protect consumers from rising electricity prices.
“Data center self-generated power could move a lot faster than putting it on the grid and we have to do that,” Huang said. More

Despite the government shutdown, the federal tax extension deadline is still Oct. 15 for most filers.
The process could be harder for some taxpayers after the IRS furloughed nearly half of its workforce earlier this week.
However, electronic filing remains operational, and you can still file online by the deadline to avoid a penalty.

Valentinrussanov | E+ | Getty Images

Despite the government shutdown, the Oct. 15 federal tax extension deadline is fast approaching for many filers.
The process could be harder for some taxpayers after the IRS furloughed nearly half of its workforce —about 34,000 employees — earlier this week, experts say.

“It’s going to be a long haul if you need any kind of specialized customer experience,” said Jennifer MacMillan, president of the National Association of Enrolled Agents, whose members are tax professionals licensed by the IRS.

Read more CNBC personal finance coverage

The original tax deadline was April 15. If you couldn’t meet that due date, you could submit Form 4868 for a six-month extension to file. But your tax payment was still due on April 15.
During fiscal 2024, the IRS received more than 20 million tax extension forms, according to the latest agency projections. For 2025, it expects that number to be around 19.8 million. 
Some taxpayers impacted by natural disasters automatically have even more time to file beyond Oct. 15.
If you missed the April 15 tax deadline, the late payment penalty is 0.5% of your unpaid balance per month or partial month, capped at 25%. You will also incur interest on unpaid taxes.

By comparison, the failure-to-file penalty is 5% of unpaid taxes per month or partial month, up to 25%. If you filed for an extension, this kicks in after Oct. 15.

‘Expect increased wait times’

Filers can “expect increased wait times, backlogs and delays implementing tax law changes as the shutdown continues,” the National Treasury Employees Union said in a statement Wednesday.
“Taxpayers around the country will now have a much harder time getting the assistance they need, just as they get ready to file their extension returns due next week,” the organization said.

However, some customer service representatives remain at work, according to a 2026 lapsed appropriations contingency plan that went into effect Wednesday.
“During a government shutdown, there could be impacts to IRS services,” said Elizabeth Young, director for tax practice and ethics with the American Institute of CPAs. “However, electronic filing systems typically remain operational, so you can still file online.”

Double-check your filing

While it may be tempting to rush through your tax return to meet the Oct. 15 deadline, errors could cause IRS processing delays, according to Young.
The IRS has “very sophisticated software” that compares information returns, such as W-2s and 1099s, to what’s reported on your filing, she previously told CNBC.
Most tax forms arrived in January, February or March. But others may have taken longer, depending on your situation. You can compare your current-year return to last year’s filing to avoid missed forms and information, experts say. More

The Snowflake Inc logo, the American cloud computing-based data company that offers cloud-based storage and analytics services, is on their pavilion during the Mobile World Congress 2025 in Barcelona, Spain, on March 5, 2025.
Joan Cros | Nurphoto | Getty Images

Investors are looking beyond the prolonged U.S. government shutdown and remain optimistic about growth drivers like the artificial intelligence boom and expectations of further interest rate cuts.
Ignoring the short-term noise, those looking for attractive investment opportunities can consider the stock picks of top Wall Street analysts, whose recommendations are based on a thorough analysis of a company’s fundamentals and growth catalysts.

Here are three stocks favored by the Street’s top pros, according to TipRanks, a platform that ranks analysts based on their past performance.

Snowflake

First on this week’s list is Snowflake (SNOW), a cloud-native data platform. At the recently held Snowflake World Tour event in New York City, the company highlighted its product innovation and the vision for driving business transformation through data and artificial intelligence.
After attending this customer conference, Jefferies analyst Brent Thill reiterated a buy rating on SNOW stock with a price forecast of $270. Based on his conversations with customers and partners at the event, the analyst noted that Snowflake’s product innovation and velocity are accelerating.
Thill highlighted that while traction for Snowflake’s AI offerings is building, the inflection point is still ahead. For instance, the top-rated analyst noted that a retailer using Snowpark ML for demand forecasting, and a travel company integrating Snowflake ML models into its customer experience pipeline, both believe that broader usage across their organizations will take a few more quarters.
Another key takeaway was that Snowflake’s unstructured data capabilities have strengthened, but there are still some gaps to address. Overall, Thill believes that while traction is building for Snowflake, the “AI Blizzard” still lies ahead.

“SNOW remains one of our favorite data & AI stories and stands to benefit meaningfully as enterprise AI strategies mature and AI driven data volumes grow exponentially in the coming years,” concluded Thill. Interestingly, TipRanks’ AI Analyst has a “neutral” rating on Snowflake stock with a price target of $255.
Thill ranks No. 251 among more than 10,000 analysts tracked by TipRanks. His ratings have been successful 65% of the time, delivering an average return of 14.1%. See Snowflake Ownership Structure on TipRanks.

Advanced Micro Devices

Moving on to chipmaker Advanced Micro Devices (AMD), which recently made headlines after announcing a game-changing partnership with OpenAI. Under this deal, OpenAI will deploy up to 6 gigawatts of AMD Instinct GPUs over multiple years, starting with a 1-gigawatt rollout in the second half of 2026. The agreement also involves a warrant for up to 160 million shares (vesting tied to certain milestones), which, if fully exercised by OpenAI, will give it about a 10% stake in AMD.
Following the news, Jefferies analyst Blayne Curtis upgraded AMD stock to buy from hold and boosted the price target to $300 from $170. Additionally, TipRanks’ AI Analyst has an “outperform” rating on AMD stock with a price target of $232.
Curtis believes that AMD’s deal with OpenAI clearly changed the AI narrative for the semiconductor company. While the chipmaker will still have to achieve some milestones, the 5-star analyst believes that this partnership is a solid confirmation of AMD’s AI roadmap and a proof of robust AI demand in general.
Interestingly, Curtis recently raised his estimates for AMD following positive server checks. The analyst stated he was incrementally positive on AMD after his recent Asia trip, with the expectation of 500 basis points per year share gains in server CPUs with the company’s Venice platform.
However, these recent checks hadn’t helped Curtis grasp anything from the original device manufacturers (ODMs) in terms of AI ramps. “The announcement of OpenAI as a lead customer with the potential for $80-100B in revenue across 6GW of compute through 2030 materially changes that outlook,” said Curtis.
Curtis ranks No. 68 among more than 10,000 analysts tracked by TipRanks. His ratings have been profitable 65% of the time, delivering an average return of 27.5%. See AMD ETF Exposure on TipRanks.

Dell Technologies

IT infrastructure and personal computing solutions provider Dell Technologies (DELL) announced an increase in its long-term financial targets during its analyst meeting on Oct. 7. The improved outlook is backed by demand from the ongoing AI wave.
Following the event, Mizuho analyst Vijay Rakesh reiterated a buy rating on DELL stock and raised his price target to $170 from $160. Meanwhile, TipRanks’ AI Analyst has a “neutral” rating on DELL stock with a price target of $135.
Rakesh noted management’s commentary about momentum in enterprise and sovereign AI, with strong demand signals over 12-18 months. The top-rated analyst highlighted that the company raised its compound annual growth rate target for revenue for fiscal 2026 to 2030 to the range of 7% to 9%, with non-GAAP EPS expected to rise by 15% or more.
Furthermore, Rakesh noted that Dell’s fiscal 2026 AI server revenue estimate of $20 billion is in line with the Street’s consensus of $20.6 billion and reflects over 100% growth from $9.8 billion in the previous year. The company expects a 20% to 25% CAGR through Fiscal 2030, implying AI server revenue of $46 billion.
However, the analyst believes that this growth outlook could be conservative, as the company is involved in all at-scale AI cluster deployments and leads in T2 CSP (tier 2 cloud service providers) and enterprise AI deployments with more than 3,000 customers.
Rakesh ranks No. 81 among more than 10,000 analysts tracked by TipRanks. His ratings have been successful 65% of the time, delivering an average return of 24.3%. See Dell Technologies Hedge Fund Activity on TipRanks. More

Department store shopping may be falling out of style with today’s younger consumers, but there’s a reason older generations keep coming back.
Whether it’s more generous return policies, promotional events or deep discounts, in-store shopping has plenty of perks.
“There are some savings opportunities that you have when you shop in person that you probably wouldn’t have online,” said Edgar Dworsky, founder of ConsumerWorld.org.

A sign marks the location of a Nordstrom store in a shopping mall on March 20, 2024 in Chicago, Illinois.
Scott Olson | Getty Images

Department stores may be falling out of favor with today’s younger consumers, but there’s a reason older shoppers keep coming back.
Whether it’s more generous return policies, promotional events or deep discounts, “if you can learn the benefits of what a store brings you, it creates a much greater experience,” said Marshal Cohen, chief retail advisor for market research firm Circana.

For example, if a sales associate doesn’t have an item you want in stock, often they’ll get it and ship it to you at no cost, Cohen said — “that’s a big perk.”
And yet, for younger shoppers, the mentality is “I don’t want to shop where my mother shops,” he said.

‘The tiktokification of retail’

To be sure, at Macy’s and its subsidiary Bloomingdale’s, for example, the majority of customers are above the age of 45, according to new Consumer Edge data.
Baby boomers are also much more likely to say in-store shopping is their most common way of making purchases, compared with Generation Z, or those born between 1997 and 2012, according to a Capital One report from March.
“The younger generation grew up online,” Cohen said. “The challenge for department stores is to break that paradigm.”

Social media plays a big role in how younger consumers make purchases, added Oliver Chen, a retail analyst at TD Cowen. It’s a trend he refers to as “the tiktokification of retail.”

Read more CNBC personal finance coverage

But while shopping primarily online may seem quick and convenient, it does come with extra hassles.
It can mean relying on a practice known as “bracketing,” or ordering multiple products in different sizes or colors with the intention of keeping a few and returning the rest — adding more time and cost to each transaction.
As online retailers try to keep those returns in check, most have rolled out stricter policies, including charging a return or restocking fee, according to a 2023 report from return management company Happy Returns.
But even now, some department stores have held on to the more generous policies of yesteryear, with longer return windows or free shipping, and that has gone a long way when it comes to building brand loyalty.
“There are some savings opportunities that you have when you shop in person that you probably wouldn’t have online,” said Edgar Dworsky, founder of ConsumerWorld.org.

‘It’s a generational thing’

Pedestrians carry Bloomingdale’s shopping bags while walking in New York.
Craig Warga | Bloomberg | Getty Images

Although Bloomingdale’s shortened its return window to 30 days from 90 days last year, shoppers appreciate the other perks, according to Nancy Quinn, a personal stylist at the flagship store in New York City.
“The biggest thing that Bloomingdale’s offers is customer service, that is really where we shine,” Quinn said.
Quinn meets her clients, who are mostly women between the ages of 45 and 70, by appointment to help them find clothing for everyday or special occasions. She said she will often waive the shipping fee or send the purchases via messenger at no charge to locations in Manhattan. At times, she has even hand-delivered an item — also as a complimentary service — if the customer is local and under a time constraint.
“Those are things that we try to do to make sure people know how much we appreciate the business,” Quinn said. At many high-end department stores, personal stylists work on commission and the assistance they provide is free for customers.

Nancy Quinn is a personal stylist at Bloomingdale’s flagship store in New York City.
Courtesy: Nancy Quinn | @qstylepr

Quinn’s appointments book up especially quickly when Bloomingdale’s runs promotional events, such as “friends and family,” which is typically a 25% discount across many brands.
Still, Quinn says younger customers are less likely to shop with her.
“It’s a generational thing,” Quinn said. “A lot of younger people are shopping online.” Alternatively, “the women I am meeting are really ready to make an investment in themselves and their wardrobe.”

Wealthy shoppers give stores a boost

To be sure, U.S. department stores have been in a slump for years. Retailers like JCPenney and Macy’s have struggled to compete against online retailers and smaller brick-and-mortar stores that can better adapt to changing consumer preferences.
“Small new brands that are emerging have just as much marketing power because the internet levels the playing field,” said Circana’s Cohen.
However, department stores aren’t dead yet.
Last year, Macy’s said it would close some of its namesake stores and open more Bloomingdale’s locations. According to the company’s quarterly report, Bloomingdale’s performed better because of its focus on the luxury brands that appeal to higher-income shoppers.  

“Selective higher-end stores” are outpacing the competition, in part because “middle- and lower-income consumers have been disproportionately negatively impacted by the rising cost of necessities,” said TD Cowen’s Chen.
In an interview last month, Macy’s CEO Tony Spring told CNBC that the consumer remains resilient and continues to spend on new items and fashion, despite concerns about tariffs.
The challenge for department stores is to bring shoppers in, even as managing inventory and pricing gets increasingly difficult, Chen said. “It is ironic because everybody does love stores and humans want connection.”
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Buffett Watch

Berkshire Hathaway Portfolio Tracker

(This is the Warren Buffett Watch newsletter, news and analysis on all things Warren Buffett and Berkshire Hathaway. You can sign up here to receive it every Friday evening in your inbox.)

Berkshire’s Japanese stock positions top $30 billion

The total value of the five Japanese “trading houses” in Berkshire Hathaway’s equity portfolio has topped $30 billion in recent weeks, and Warren Buffett is apparently still buying.

Arrows pointing outwards

Berkshire had already been building its positions for twelve months when Buffett initially revealed the stakes of around 5% each on August 30, 2020, his 90th birthday.
At that time, the total value of the five positions was roughly $6.3 billion.
It’s up 392% to $31.0 billion today, with Berkshire buying more over the years and the stocks soaring between 227% and 551%.

Arrows pointing outwards

The total could be even higher because some additional purchases may not have been disclosed yet.
We know Warren Buffett has been adding to what was already a tremendously successful investment, with public acknowledgements recently that two of the stakes have gone above 10%.

One of the two, Mitsui, detailed this week exactly how many shares Berkshire owns.
In a news release Thursday, the company relays word from Berkshire that its National Indemnity subsidiary owned 292,044,900 shares as of September 30.
At Friday’s close, they’re valued at around $7.1 billion.
It’s a 10.1% stake, making Nation Indemnity its biggest shareholder.
It’s also an increase of 2.3% from the 285,401,400 shares, a 9.7% stake, reported in March.
This week’s news release is a follow-up to one issued two weeks ago by Mitsui in which it said it had been “informed” by Berkshire that “they now hold 10% or more of the voting rights in Mitsui,” but had not been told the exact number of shares Berkshire owned.

Arrows pointing outwards

In late August, Mitsubishi reported it had been told by Berkshire that its holding had increased to 10.2% from 9.7% in March.
We haven’t heard anything since March about Berkshire’s three other Japanese holdings, Itochu, Marubeni, and Sumitomo, but it would not be a surprise to learn those stakes have also gone above 10%.
Back in 2020, Buffett promised the companies he would not raise Berkshire’s stakes above 10% without permission.  
In his annual letter to shareholders released in February, however, Buffett wrote, “As we approached this limit the five companies agreed to moderately relax the ceiling.”
As a result, he said, “Over time, you will likely see Berkshire’s ownership of all five increase somewhat.”

In 2023, Buffett told CNBC’s Becky Quick he was first attracted to the stocks in 2020 because “they were selling at what I thought was a ridiculous price, particularly the price compared to the interest rates prevailing at that time.”
This year, he told shareholders Berkshire will hold onto them for “50 years or forever.

BUFFETT AROUND THE INTERNET

Some links may require a subscription:

HIGHLIGHTS FROM THE ARCHIVE
Why Buffett and Munger don’t trust financial projections (1995)

BERKSHIRE STOCK WATCH

Four weeks

Arrows pointing outwards

Twelve months

Arrows pointing outwards

BERKSHIRE’S TOP U.S. HOLDINGS – Oct. 10, 2025

Arrows pointing outwards

Berkshire’s top holdings of disclosed publicly traded stocks in the U.S., Japan, and Hong Kong, by market value, based on today’s closing prices.
Holdings are as of June 30, 2025, as reported in Berkshire Hathaway’s 13F filing on August 14, 2025, except for:

The full list of holdings and current market values is available from CNBC.com’s Berkshire Hathaway Portfolio Tracker.

QUESTIONS OR COMMENTS

Please send any questions or comments about the newsletter to me at [email protected]. (Sorry, but we don’t forward questions or comments to Buffett himself.)
If you aren’t already subscribed to this newsletter, you can sign up here.
Also, Buffett’s annual letters to shareholders are highly recommended reading. There are collected here on Berkshire’s website.
— Alex Crippen, Editor, Warren Buffett Watch More

Thomas Fuller | SOPA Images | Lightrocket | Getty Images

Company: Atkore (ATKR)
Business: Atkore is a manufacturer of electrical products for construction and renovation markets, and safety and infrastructure products for the construction and industrial markets. The company’s segments include electrical and safety & infrastructure. The electrical segment manufactures products used in the construction of electrical power systems including conduit, cable and installation accessories. This segment serves contractors in partnership with the electrical wholesale channel. The safety & infrastructure segment designs and manufactures solutions including metal framing, mechanical pipe, perimeter security and cable management for the protection and reliability of critical infrastructure. These solutions are marketed to contractors, OEMs, and end-users. It manufactures products in 42 facilities and operates a total footprint of over 8.5 million square feet of manufacturing and distribution space in eight countries.
Stock Market Value: $2.09 billion ($61.97 per share)

Stock chart icon

Atkore stock performance year to date

Activist: Irenic Capital Management

Ownership: 2.5%
Average Cost: n/a
Activist Commentary: Irenic Capital was founded in October 2021 by Adam Katz, a former portfolio manager at Elliott Investment Management, and Andy Dodge, a former investment partner at Indaba Capital Management. Irenic invests in public companies and works collaboratively with firm leadership. Their activism has thus far focused on strategic activism, recommending spinoffs and sales of businesses.
What’s happening
On Sept. 30, Irenic announced that they have taken a 2.5% position in Atkore and are urging the company to pursue a potential sales process.
Behind the scenes
Atkore is a manufacturer of electrical products for construction and renovation markets, and safety and infrastructure products for the construction and industrial markets. Its electrical segment produces conduit, cable, and installation accessories for electrical power systems. The safety & infrastructure segment manufactures solutions including metal framing, mechanical pipe, perimeter security, and cable management systems. For years Atkore operated as part of a stable oligopoly — Hubbell, Eaton and nVent being among the other major domestic players.

The pandemic catalyzed a surge in construction and, in turn, the demand for Atkore’s electrical products that are essential in the wiring processes. As a result, the company got aggressive in pricing and, from fiscal year 2019 to 2022, revenue grew from $1.9 billion to $3.9 billion, and EBITDA grew alongside from $300 million to $1.3 billion. However, as we have seen with many companies, demand ultimately normalized after Covid and revenue stopped growing. To make matters worse, Atkore’s aggressive pricing strategy backfired, as it invited import competition into a market that had long been protected by high freight costs and distributor preference for local supply. By raising prices too sharply, they effectively undermined their own market position. As a result, revenue has declined to $2.9 billion and EBITDA to $462 million.
Moreover, despite a $1 billion decrease in revenue, SG&A has increased, and the company’s headcount has risen over 40%. On top of this is a misallocation of capital. Instead of using Covid-era windfalls to invest into the core electric business, management has pursued non-core ventures such as water infrastructure and fiber conduit for rural broadband, many of which projects never materialized. Now, a company that once traded at the top of the market around $190 per share in early 2024, has fallen all the way down to around $60 per share; and amid this underperformance, in late August, CEO Bill Waltz unexpectedly announced his retirement without a successor in place.
This has all prompted Irenic Capital Management to announce a 2.5% position in Atkore. With no CEO, operational and capital challenges, and a poor market perception, Atkore is now at a critical inflection point where the board will have the biggest decision it will ever make that will determine the outcome for shareholders.
The most important thing a board does is identify and retain a CEO and Atkore is now at that point. However, when a company faces similar issues to Atkore and is on the precipice of a serious restructuring, the board needs to make one more decision before hiring a new CEO – whether the company should remain independent or not. We would expect that Irenic would want one or two new directors identified by them on the board to take part in this analysis and decision, likely independent directors with relevant experience.
Atkore currently trades at approximately 6.5x EBITDA but offers clear cost cutting and divesture opportunities that private equity may be able to more effectively execute. Thus, it is fair to assume a takeout at multiple turns above the company’s current valuation, potentially 8 to 10 times EBITDA. If a review of strategic alternatives concludes that an acquisition would happen in that range, then the board would need to use that as the benchmark against a standalone plan.
The first step in a standalone plan would be identifying the right CEO who would be tasked with realigning the company’s operational and capital focus with its core electrical business, divesting non-core assets, cutting costs, and implementing pricing discipline. As Rocco says to Michael Corleone, this would be difficult, but not impossible. There is definitely at least $100 million of costs that could be cut from SG&A and the headwinds that caused the decline in revenue have now reversed, with pricing low enough to once again discourage importers even before the issuance of tariffs, which is a tailwind for Atkore.
But it is worth repeating that none of this is possible without the right CEO and it is important to have the best possible board to make that decision, and this board has given shareholders the right to be worried. Currently, both the company’s chairman and former CEO come from water industry backgrounds, likely contributing to the strategic shift away from the company’s core.
Moreover, Atkore recently announced a strategic review focused on non-core asset sales, including its water conduit business. While this might be the right decision, launching a strategic review without a permanent CEO seems rushed and poorly timed, and conducting such a review at this time without weighing the possibility of a full sale is even more perplexing. A refreshed board with directors who bring in relevant electrical industry expertise that can guide the CEO succession process, and the sale analysis would be an essential first step.
Irenic has significant experience in strategic activism, identifying companies that are struggling in the public markets and helping implement spinoffs and sales of businesses. The nomination window for directors opened on Oct. 2 and we do not think it is a coincidence that Irenic went public with their campaign the day prior to the nomination window opening. We expect that they will be talking to the company about board composition. Ideally, shareholders would benefit most with the addition of a couple of new independent directors with relevant experience and having Irenic as an active shareholder to support the board in its analysis.
Ken Squire is the founder and president of 13D Monitor, an institutional research service on shareholder activism, and the founder and portfolio manager of the 13D Activist Fund, a mutual fund that invests in a portfolio of activist investments. More

New federal tax changes for 2026 may affect what families may owe and the refunds they may receive.
The IRS has released new updates on thresholds affecting families, including the child tax credit, earned income tax credit, adoption credit and annual gift tax exclusion.

Vgajic | E+ | Getty Images

The IRS has announced new tax inflation adjustments for 2026.
Those changes may affect just how much federal taxes families pay in taxes or receive in their refunds come tax time.

Qualifying families may see higher amounts for the child tax credit and earned income tax credit in 2026. Moreover, the adoption credit and gift tax exclusion have also been adjusted for next year.
In its Thursday announcements, the IRS also increased figures for dozens of other provisions, including federal income tax brackets and long-term capital gains brackets, among others.
The IRS announcements came a day after the agency said it would furlough nearly half its workforce due to the ongoing government shutdown. 

Read more CNBC personal finance coverage

Child tax credit for 2026

As the IRS noted in its announcement, President Donald Trump’s “big beautiful bill” enacted in July bumped the maximum child tax credit — a tax break for parents of qualifying children — to $2,200 starting in 2025. Prior to that legislation, the maximum child tax credit was $2,000 per child.
The maximum $2,200 child tax credit will be in effect for tax years 2025 and 2026, according to an IRS spokesperson. That threshold will be adjusted for inflation for tax year 2027, the spokesperson said.

The refundable portion of the child tax credit is $1,700 for 2026, according to the IRS, which is unchanged from 2025. That represents the amount families may potentially receive back as a tax refund if their tax liability is less than their child tax credit amount.

Earned income tax credit for 2026

The earned income tax credit — a tax break for low- to middle-income individuals and families — will be adjusted for 2026 based on the taxpayer’s number of children and income.
The maximum earned income tax credit, or EITC, will increase to $8,231 in 2026 for qualifying taxpayers with three or more eligible children — up from $8,046 for tax year 2025.
For qualifying taxpayers with two children, the maximum EITC will increase to $7,316 in 2026, up from $7,152 in 2025.
For taxpayers with one child, the maximum will be $4,427, up from $4,328 in 2025.
For qualifying filers with no children, the maximum amount will be $664 in 2026, up from $649 in 2025.

To qualify for the tax credit, individuals and families must be under certain thresholds for adjusted gross income.
Married couples who file jointly will completely phase out at $70,224 in adjusted gross income if they have three or more children, $65,899 in AGI with two children, $58,863 with one child and $26,820 with no children.
For other tax filing statuses — single, head of household or widowed — the EITC will completely phase out at $62,974 for those with three or more children, $58,629 for two children, $51,593 for one child and $19,540 for no children.
To qualify for the EITC, taxpayers cannot have more than $12,200 in certain investment income in 2026.

Adoption credit for 2026

The maximum credit for qualified adoption expenses rises to $17,670 in 2026, up from $17,280 in 2025. The amount of the credit that may be refundable will be $5,120 in 2026.

Gift tax exclusion changes

The annual exclusion for gifts will be $19,000 in 2026 — which is unchanged from 2025.
The annual exclusion for gifts to a spouse who is not a U.S. citizen will go up to $194,000 for 2026 — a $4,000 increase from 2025. More

ETF Strategist

ETF Street
ETF Strategist

Many young investors avoid stocks because it seems intimidating, according to a Bankrate poll.
Young people should be fully invested in stocks and avoid cash and bonds in their investment portfolios, said Josh Brown, CEO of Ritholtz Wealth Management.
Doing so doesn’t have to be complicated. An index fund that tracks the broad stock market is a good one-and-done fund for investors, according to finance experts.

Josh Brown.
Danielle DeVries | CNBC

Investing can feel daunting for newbies.
About 21% of surveyed Americans say stocks aren’t their preferred way to invest because the stock market is too intimidating, according to a Bankrate poll in January. That fear skewed higher for younger people, to 29% of Gen Z members and 24% of millennials, it found.

Putting all your money in cash or bonds may feel safe, because it seems like there’s little scope for financial loss — but this is misguided, according to financial advisors.
“When you’re young, worrying more about downside than upside is probably the biggest mistake,” said Josh Brown, CEO of Ritholtz Wealth Management. “You have to get rich before you focus on preserving your wealth.”

More from ETF Strategist:

Here’s a look at other stories offering insight on ETFs for investors.

In fact, young people shouldn’t be focused at all on cash positions or bonds in their investment accounts, Brown said. Instead, they should be fully invested in the stock market, he said.

Young investors have time on their side

It may seem counterintuitive that stocks are generally the safer route for young investors when it comes to building long-term financial security.
While stocks are generally more volatile than cash and bonds, stocks have also historically outperformed them over long periods — an important factor when it comes to growing wealth and beating inflation, which erodes the value of money over time, experts said.

The S&P 500, an index of the largest U.S. stocks, had an average annual return of almost 12%, including dividends, from 1928 through 2024, according to data compiled by Aswath Damodaran, a finance professor at New York University.
By comparison, 10-year U.S. Treasury bonds and corporate bonds had an average annual return of about 5% and 7% over the same period, respectively, the data shows.
Investors in their 20s and 30s have decades ahead of them for interest to compound and recoup any near-term financial losses from stocks.
“When you’re a young investor, you have something at your disposal that every professional investor dreams that they can have, which is more time,” Brown said.
“When you appreciate how much time you have, you recognize the benefit of long-term compounding,” he said. “Even though you think you’re taking more risk by buying and holding [stocks], you’re actually taking less risk.”

How to buy and hold stocks

Fajrul Islam | Moment | Getty Images

Buying and holding stocks is just one part of the equation — how investors hold them matters a lot, too.
Investors who are just starting out are generally best served by owning an index fund that tracks the broad stock market, instead of trying to pick individual company stocks that they or analysts think will perform well. The latter strategy is risky, since investors peg their financial outcomes to the success of a handful of stocks.
Index mutual funds and exchange-traded funds hold a basket of hundreds of stocks that track the broad market. Index funds have historically outperformed most stock pickers over long stretches of time and take a lot of the complexity out of investing, experts said.
“If you’re going to be self-directed and you’re going to do it yourself, I would utilize index [mutual] funds and index ETFs,” Brown said. “And until you’ve got six figures of pure stock market exposure at a low cost, there’s really nothing else worth talking about.”

Young investors can start out with a total market index fund, said Christine Benz, director of personal finance and retirement planning for Morningstar.
An all-stock index fund that provides U.S. and non-U.S. stock exposure, such as the Vanguard Total World Stock ETF (VT), is a good “one-and-done fund” for young investors, she said.
A balanced fund or target-date fund may also work well, she said.
Balanced funds maintain a static asset allocation — that is, the relative mix of assets such as stocks and bonds — over time. A target-date fund is similar, but gradually winds down its stock exposure as investors age.
Investors should be mindful of the type of account in which they hold their assets, advisors said. For example, it may make more sense to hold certain funds such as a target-date fund in a tax-advantaged retirement account such as a 401(k) or IRA instead of a taxable brokerage account, a type of non-retirement account, to prevent an unexpected tax bill at year-end.
This article is part of CNBC’s Let’s Get Personal (Finance) video series. Check out the full lineup of videos to help you make smarter money decisions on YouTube. More