Henderson & Henderson Financial Co.

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

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.

Schedule 1-A (Form 1040) is a new IRS form for 2025–2028 used to claim four specific "below-the-line" deductions created by the One Big Beautiful Bill Act, including no tax on tips/overtime, car loan interest, and enhanced senior deductions. It first applies to the 2026 tax filing season for 2025 returns, allowing deductions to reduce taxable income.

Key Aspects of Schedule 1-A (Form 1040):
Purpose: Consolidates new, temporary tax deductions for the 2025–2028 tax years.
Four Main Deductions:

✔️No Tax on Tips: For eligible service industry employees.

✔️ No Tax on Overtime: Applicable to qualified overtime pay.

✔️Qualified Vehicle Loan Interest: Deductions for interest paid on certain car loans.

✔️Enhanced Deduction for Seniors: Special tax breaks for individuals aged 65 or older.

Structure: Contains six parts, including a section to calculate Modified Adjusted Gross Income (MAGI), which is used for phase-out provisions.
Application: These are "below-the-line" deductions, meaning they reduce taxable income but not the adjusted gross income (AGI). They can be taken regardless of whether a taxpayer itemizes or takes the standard deduction.

Filing: It is attached to Form 1040, 1040-SR, or 1040-NR.

The form was introduced to manage new tax incentives for working Americans and seniors.

I’m seeing this in box 14 on most w2s!!

No tax on overtime (Section 70202)

Overview of the deduction

Effective 2025 through 2028, individuals may deduct the portion of qualified overtime pay that exceeds their regular rate of pay (for example, the “half” portion of “time-and-a-half”)
Overtime must be reported on Form W-2, Form 1099, another statement furnished to the individual, or directly by the individual
Maximum annual deduction is $12,500 ($25,000 for joint filers)
Phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers)
Who qualifies

Taxpayer who:

Have a Social Security number (SSN)
Claim itemized or non-itemized deductions
How to claim the deduction

Include your Social Security number on the return
File jointly if you’re married
Reporting requirements

Employers and other payors must report qualified overtime compensation on IRS (or SSA) information returns

Treasury and the IRS will provide transition relief for tax year 2025

All my new car buyers:

No tax on car loan interest (Section 70203)
Overview of the new deduction

Effective 2025 through 2028, individuals may deduct interest paid on a loan used to purchase a qualified vehicle for personal use that meets other eligibility criteria. Lease payments do not qualify.
Maximum annual deduction is $10,000.
Phases out for taxpayers with modified adjusted gross income over $100,000 ($200,000 for joint filers).
What counts as qualified interest

Interest must be paid on a loan that:

Originated after December 31, 2024
Was used to purchase a vehicle originally used by the taxpayer
Was secured by a lien on the vehicle
Was for a personal-use (nonbusiness) vehicle
If a qualifying vehicle loan is later refinanced, interest paid on the refinanced amount is generally eligible for the deduction.

​​​What counts as a qualified vehicle

A qualified vehicle is a car, minivan, van, SUV, pickup truck or motorcycle that:

Has a gross vehicle weight rating of less than 14,000 pounds
Underwent final assembly in the United States.
To verify final assembly, check one of these:

The vehicle label at the dealership
The vehicle identification number (VIN)
The National Highway Traffic Safety Administration, NHTSA VIN Decoder (verify vehicle assembly location)
Who qualifies

Available to both itemizing and non-itemizing taxpayers.
You must include the VIN on your return for any year you claim the deduction.
Reporting requirements

Lenders or other recipients of qualified interest must file information returns with the IRS and provide statements to taxpayers showing the total amount of interest received during the taxable year.

To all my hard workers:

No tax on tips (Section 70201)
Overview of the deduction

Effective 2025 through 2028, employees and self-employed individuals may deduct qualified tips they received in occupations the IRS identified as “customarily and regularly receiving tips” on or before December 31, 2024, and are reported on a Form W-2, Form 1099, another statement furnished to the individual, or on Form 4137 if the individual directly reports the tips.
“Qualified tips” include voluntary cash or charged tips received from customers, including shared tips.
Maximum annual deduction is $25,000.
For self-employed individuals, deduction cannot exceed net income (before this deduction) from the trade or business where tips were earned.
Phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers).
Who qualifies

Individuals who:

Have a Social Security number (SSN)
Claim itemized or non-itemized deductions
Who doesn’t qualify

Individuals who are:

Self-employed in a Specified Service Trade or Business (SSTB) under Section 199A
Employees of an employer in an SSTB
How to claim the deduction

Include your Social Security number on the return
File jointly if you’re married
Reporting requirements

Employers and other payors must report certain cash tips and the occupation of the tip recipient on IRS (or SSA) information returns.
Treasury and IRS will provide penalty relief for tax year 2025.

To all my industry people:

No tax on tips (Section 70201)
Overview of the deduction

Effective 2025 through 2028, employees and self-employed individuals may deduct qualified tips they received in occupations the IRS identified as “customarily and regularly receiving tips” on or before December 31, 2024, and are reported on a Form W-2, Form 1099, another statement furnished to the individual, or on Form 4137 if the individual directly reports the tips.
“Qualified tips” include voluntary cash or charged tips received from customers, including shared tips.
Maximum annual deduction is $25,000.
For self-employed individuals, deduction cannot exceed net income (before this deduction) from the trade or business where tips were earned.
Phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers).
Who qualifies

Individuals who:

Have a Social Security number (SSN)
Claim itemized or non-itemized deductions
Who doesn’t qualify

Individuals who are:

Self-employed in a Specified Service Trade or Business (SSTB) under Section 199A
Employees of an employer in an SSTB
How to claim the deduction

Include your Social Security number on the return
File jointly if you’re married
Reporting requirements

Employers and other payors must report certain cash tips and the occupation of the tip recipient on IRS (or SSA) information returns.
Treasury and IRS will provide penalty relief for tax year 2025.

As Gov. Brian Kemp made his last State of the State address, he announced that Georgians will receive another tax rebate for a fourth straight year in a row: https://2wsb.tv/459UrGS

IRS sets first day you can file your taxes. And you may get a bigger refund this year The average refund last year was $3,167 up about $30 from the previous year.

This is one of the ‘most important steps’ before tax season opens, IRS says The 2026 tax season opens on Jan. 26. To prepare, you should access your IRS online account, which could save time later, experts say.

2026 IRS Income Tax Refund Schedule – Estimated Refund Dates - CHPPMMD News 2026 IRS Income Tax Refund Schedule: The countdown to the 2026 US income tax season has officially begun, and for millions of Americans, one question

The IRS confirms it—it will refund up to half of your taxes to everyone who completes this online process—so you can apply We know that talking about taxes is complicated and stressful. Concepts like ‘’IRS requirements’’, ‘’forms’’, or ‘’tax credit’’ may sound confusing,

Governor Kemp signed the following two bills this week, HB 111 and HB 112.

HB 111 accelerates the largest state income tax cut in Georgia history initiated by the signing of HB 1437 in 2022. Taxpayers will see the reduced rate reflected in their withholding beginning in July.

HB 112 authorizes the delivery of $1 billion in one-time surplus tax refunds of up to $500 per Georgia tax-payer household.
The Department of Revenue (DOR) will begin issuing the surplus income tax refunds in late May/early June. Taxpayers must file their 2023 and 2024 taxes prior to receiving the refund. As in previous years, single tax filers and married individuals who file separately could receive a maximum refund of $250, head of household filers could receive a maximum refund of $375, and married individuals who file joint returns could receive a maximum refund of $500, based on an individual or couple’s tax liability. DOR will issue the overwhelming majority of special income tax refunds by July 1 of this year, for those who file on or before May 1.

Gov. Kemp Signs Legislation Delivering More than $1 Billion in Tax Cuts and Relief to Hardworking Georgians Atlanta, GA – Governor Brian P. Kemp signed legislation this week delivering more than $1 billion in significant tax relief to hardworking Georgians through an acceleration of the largest tax cut in state history and the third, one-time surplus tax refund.