Your Back Office Tax & Advisory

From the IRS: With the 2026 filing season quickly approaching, the Internal Revenue Service is urging taxpayers to take a few simple steps now to prepare for filing their 2025 federal income tax returns. Visit Get Ready on IRS.gov for checklists, updates and no-cost filing options.

One of the most important steps taxpayers can take is to access their IRS Individual Online Account. IRS Individual Online Accounts are available 24/7, to view account information, make payments, manage communication preferences and protect tax information.

Use direct deposit

Due to the presidential executive order, Modernizing Payments To and From America’s Bank Account the IRS is phasing out paper tax refund checks. The IRS encourages taxpayers who do not have a bank account to open one so they can receive refunds by direct deposit.

Review new 2025 tax law changes

Recent legislation, such as the provisions in the One, Big, Beautiful Bill, includes several new deductions and credits that may reduce tax bills or increase refunds. Beginning in 2025, to be eligible to claim certain credits for other dependents, the taxpayer and their spouse, if filing jointly, must have valid Social Security numbers or Individual Taxpayer Identification Numbers issued on or before the due date of their returns (including extensions).

New Trump Accounts for eligible children

Parents, guardians and other authorized individuals will be able to open Trump Accounts, a new retirement savings vehicle for children under the age of 18 with a valid SSN. A pilot program contribution of $1,000 will be available for children who are U.S. citizens and born from Jan. 1, 2025, to Dec. 31, 2028. Visit trumpaccounts.gov for details.

Income from payment apps and online sales

All income from part-time work, gig activities or sales of goods and services is taxable. Form 1099-K, Payment Card and Third Party Network Transactions, will be issued by payment card companies for any amount and by payment apps and online marketplaces when payments exceed $20,000 and more than 200 transactions occur for the year.

Digital assets reporting requirements

Taxpayers who bought, sold or received digital assets, including cryptocurrency, stablecoins or NFT, must report those transactions. Some taxpayers may receive Form 1099-DA from brokers. Regardless, all taxpayers must answer the digital asset question on Form 1040 and report any related income, gains, or losses. Visit Digital Assets for more information.

Get ready now

Take a few steps today, reviewing tax law changes, gathering documents and using online tools, to help ensure a smoother less stressful experience when filing taxes in 2026.

MAJOR TAX LAW CHANGES

Car loan interest:

Effective 2025 through 2028. Up to $10,000 per year for interest on qualified new vehicle loans. Phase-out begins at modified adjusted gross income of $100,000 for single filers, $200,000 for joint filers.

Standard deduction increase:

The standard deduction increases for tax year 2026, to $32,200 for married couples filing jointly, $16,100 for single filers and married individuals filing separately, $24,150 for heads of household.

Deduction for seniors:

Additional $6,000 per taxpayer aged 65 or older. $12,000 if both spouses qualify. Phase-out begins at modified adjusted gross income of $75,000 for single filers, $150,000 for joint filers.

No tax on overtime:

It applies only to the overtime premium portion of wages. Modified adjusted gross income caps annually at $12,500 for single filers, $25,000 for joint filers.

No tax on tips:

Up to $25,000 of qualified tip income is deductible. Phase-out begins at modified adjusted gross income of:
$150,000 for single filers, $300,000 for joint filers.