Taxes- The Balance Sheet

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Trust our experts to help you with your bookkeeping needs. We understand the complexities of accounting and can help you stay organized and on track. Contact us at 505-916-0677 for more information.

Let’s face it, running a business is challenging enough without worrying about bookkeeping and taxes. That’s where we come in! The Balance Sheet offers expert bookkeeping and payroll services, so you can stay focused on your business. Call 505-916-0677.

Reminders for taxpayers about digital assets

Taxpayers are starting to receive their 2025 tax documents, such as W-2s, Forms 1099 or other income documents. People who sold or disposed of digital assets using a broker might receive a new Form 1099-DA from those brokers.

Examples of digital assets include

Convertible virtual currencies and cryptocurrencies such as Bitcoin
Stablecoins
Nonfungible tokens
Brokers must send taxpayers a copy of the same information they report to the IRS on Form 1099-DA by Feb. 17,2026. These are different from some other tax statements taxpayers may receive. Most of these statements will not include the basis for DA transactions in 2025 and taxpayers will have to calculate basis to determine their gain or loss.

Every taxpayer must report any related income, gains, or losses, whether they receive a Form 1099-DA or not.

Also, when people file their taxes, they must answer “yes” or “no” to the digital asset question whether they have digital assets or not. Taxpayers can use this questionnaire to help determine how to answer the digital assets question.

Your business deserves the best financial care, and The Balance Sheet is here to provide just that. 🏢💼 From bookkeeping to payroll management, we’ve got you covered. Contact us now at 505-916-0677 or visit our website at https://www.thebalancesheetservice.com/

IRS opens 2026 filing season

IR-2026-12, Jan. 26, 2026

WASHINGTON — The Internal Revenue Service today opened the 2026 tax filing season and began accepting and processing federal individual income tax returns for tax year 2025.

The IRS expects about 164 million individual tax returns for tax year 2025 to be filed ahead of the Wednesday, April 15, federal deadline. Taxpayers can find a range of tools and filing options on http://IRS.gov to help them prepare and file their returns.

“As America celebrates its 250th anniversary, the IRS and its employees are excited to once again serve American taxpayers in meeting their tax filing obligations during the 2026 filing season,” said IRS Chief Executive Officer Frank J. Bisignano.

“Not only does 2026 commemorate the 250th anniversary of the signing of the Declaration of Independence, but it also coincides with the 40th anniversary of electronic filing,” Bisignano said. “Just as we did back in 1986, today the IRS encourages taxpayers to speed the processing of their returns by using e-file, instead of paper. And to speed the processing of any refund due, we also encourage the use of direct deposit,” he added.

Get help preparing and filing electronically

Filing electronically and choosing direct deposit remains the fastest way to receive a refund.

Most refunds are issued within 21 days

Direct deposit is the fastest way to receive a refund. Additionally, in accordance with Executive Order 14247, the IRS began phasing out paper tax refund checks on Sept. 30, 2025, meaning most taxpayers must provide their routing and account numbers to receive refunds directly deposited into their bank accounts.

Taxpayers can track refund status using Where’s My Refund?, the IRS2Go app, or their IRS Individual Online Account.

While the IRS issues most refunds in fewer than 21 days, some returns require additional review and may take longer.

EITC and ACTC refunds available by March 2

The IRS expects most refunds for the Earned Income Tax Credit and the Additional Child Tax Credit to be available in bank accounts or on debit cards by March 2, 2026, for taxpayers who chose direct deposit and have no other issues with their returns. Some taxpayers may receive their refund earlier, depending on their financial institution. Where’s My Refund? will provide projected deposit dates for most early EITC/ACTC refund filers by Feb. 21, 2026.

For more information and tools to help file a complete and accurate return and avoid errors that can delay refunds, visit http://IRS.gov.

Internal Revenue Service | An official website of the United States government Pay your taxes. Get your refund status. Find IRS forms and answers to tax questions. We help you understand and meet your federal tax responsibilities.

One, Big, Beautiful Bill: How to take advantage of no tax on tips and overtime

The One, Big, Beautiful Bill has a significant effect on federal taxes, credits and deductions. Millions of taxpayers reported earning tips and overtime on their tax returns, many of them are veterans and people working in lower wage jobs. This relief will impact most of these taxpayers and they can start taking advantage of the deduction this filing season.

No tax on tips
Employees and self-employed individuals may deduct qualified tips received in certain qualified occupations, such as wait staff, bartenders, salon workers, personal trainers, gig economy workers, and many more who customarily and regularly receive tips might qualify.

Even better, tips earned on or before December 31, 2024, and are reported on a Form W-2, Form 1099, or other statement furnished to the individual or reported directly by the individual on Form 4137 can be deducted.

“Qualified tips” are voluntary cash or charged tips received from customers or through tip sharing
Maximum annual deduction is $25,000; for self-employed, deduction may not exceed individual’s net income, without regard to this deduction, from the trade or business in which the tips were earned
The deduction phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers)
To see examples of how “no tax on tips” is calculated, taxpayers should review this news release.

No Tax on Overtime
Individuals who receive qualified overtime compensation may deduct the pay that exceeds their regular rate of pay, generally, the “half” portion of “time-and-a-half” compensation, that’s required by the Fair Labor Standards Act and reported on a Form W-2, Form 1099, or other specified statement furnished to the individual.

Maximum annual deduction is $12,500 ($25,000 for joint filers)
Deduction phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers)
The deduction is available for both itemizing and non-itemizing taxpayers

Taxes, bookkeeping, and payroll can be overwhelming, but they don't have to be! 🙌 Let The Balance Sheet simplify your finances and free up your time. Contact us at 505-916-0677 for more information.

Maximize your financial success with Taxes- The Balance Sheet in Albuquerque. Our team is dedicated to providing top-notch tax preparation services for all your business needs. Contact us at 505-916-0677.