Expert Tax Solutions LLC

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New Tax Laws
FAMILIES
• Child Tax Credit & Dependent Care Credits Increased
• Standard Deduction Increased
RETIREES (65+)
• Additional Deduction Added on Top of Standard Deduction
HOMEOWNERS
• SALT Deduction Increased (from $10K → $40K
• Mortgage Insurance Premiums Now Deductible
HOSPITALITY WORKERS
• New Deduction for Tip Income
• 68 Occupations Qualify for the Tip Deduction
OVERTIME PAY
• New Deduction for Overtime Pay
AUTO DEDUCTIONS & CREDITS
• Deduction for Car Interest Expense—No Itemizing Required
• EV Credit Phase-out Begins

IRS Update: Paper Checks End September 30, 2025
The IRS has officially announced that starting September 30, 2025, paper tax refund checks will be phased out for individual taxpayers.
Why it matters: Every taxpayer must now choose an alternate disbursement method—direct deposit or a secure prepaid card—when filing. While the IRS will still process the return, tax refunds will be delayed until banking or card information is added.

"No Tax on Tips" Guidance
New IRS guidance defines which occupations are eligible for the “no tax on tips” deduction from the One, Big, Beautiful Bill. This allows certain hospitality and service industry workers to deduct qualified tips.

Dirty Dozen: Watch out for scammers using email and text messages to try tricking people during tax season
Email and text scams are relentless, and scammers frequently use tax season as a way of tricking people. With people anxious to receive the latest information about a refund or other tax issue, scammers will regularly pose as the IRS, a state tax agency or others in the tax industry in emails and texts.
Phish or Smish: Avoid getting hooked by either
Phishing is an email sent by fraudsters claiming to come from the IRS or another legitimate organization, including state tax organizations. The email lures the victims into the scam by a variety of ruses such as enticing victims with a phony tax refund or frightening them with false legal/criminal charges for tax fraud.
Smishing is a text or smartphone SMS message that uses the same technique as phishing. Scammers often use alarming language like, "Your account has now been put on hold," or "Unusual Activity Report" with a bogus “Solutions” link to restore the recipient’s account.
The IRS initiates most contacts through regular mail and will never initiate contact with taxpayers by email, text or social media regarding a bill or tax refund.

Reporting foreign income and filing a tax return when living abroad
U.S. citizen and resident aliens living abroad should know their tax obligations. Their worldwide
income -- including wages, unearned income and tips -- is subject to U.S. income tax,
regardless of where they live or where they earn their income. They also have the same income
tax filing requirements as U.S. citizens or resident aliens living in the United States.
Taxpayers living outside of the U.S. and Puerto Rico have an automatic extension to file
- but not to pay
A taxpayer has an automatic two-month extension to June 15, 2023, if both their tax home and
abode are outside the United States and Puerto Rico.
Those serving in the military outside the U.S. and Puerto Rico on the regular due date of their
tax return also qualify for the extension to June 15, 2023.