Sundi Faith, CPA, PA

If you are due a refund, please note the new Rules for Refunds Starting in 2026!
Beginning in 2026, the IRS will make changes to how refunds are handled when direct deposit information is missing or invalid:
For returns filed without direct deposit information, the IRS will still process individual income tax returns (Form 1040 series) filed without bank account information. However, the IRS will temporarily freeze the refund until the taxpayer provides direct deposit information or requests a paper check.

Rejected direct deposits:
The IRS will freeze most direct deposits that are rejected by the bank and will not automatically reissue them as paper checks.
Some reject codes are excluded, but most rejected direct deposits will require taxpayer action.

If your refund is frozen, the IRS will send you a CP53E notice, which explains what you need to do next.

To avoid delays in your refund we are encouraging you to provide and verify banking information.

Is your health insurance going up? A few of the One Big Beautiful Bill changes expand HSA eligibility, which allows more clients to save and to pay for healthcare costs through tax-free HSAs.
The OBBB expands access to HSAs by making the following changes:
• Telehealth and Remote Care Services: The OBBB made permanent the ability to receive telehealth and other remote care services before meeting the high-deductible health plan (HDHP) deductible while remaining eligible to contribute to an HSA, effective for plan years beginning on or after Jan. 1, 2025.
• Bronze and Catastrophic Plans Treated as HDHPs: As of Jan. 1, 2026, bronze and catastrophic plans available through an Exchange are considered HSA-compatible, regardless of whether the plans satisfy the general definition of an HDHP. This designation expands the ability of people enrolled in these plans to contribute to HSAs, which they generally have not been able to do in the past. Notice 2026-05 clarifies that bronze and catastrophic plans do not have to be purchased through an Exchange to qualify for the new relief.
• Direct Primary Care Service Arrangements: Beginning Jan. 1, 2026, an otherwise eligible individual enrolled in certain direct primary care (DPC) service arrangements may contribute to an HSA. In addition, they may use their HSA funds tax-free to pay periodic DPC fees.

What you can do to Get Ready for the 2026 tax filing season:

The new year is less than a month away which means the 2026 tax filing season is drawing near. Taking a few steps today can save time and help ensure you are filing accurate returns in the coming months.
The One, Big, Beautiful Bill brings several changes or additions that can significantly affect federal taxes, credits and deductions. Tax deductions for tips, overtime, car loan interest and seniors are just a few of many recent updates.

Here’s some of the things taxpayers can do now:
1. Access or login to an existing IRS online account. An IRS online account allows taxpayers to access personal tax information, including recently filed returns, securely. Through this tool, you can:
• View tax records, including adjusted gross income and transcripts
• Make, schedule and view payments
• Get or view their Identity Protection PIN
• Authorize a tax professional to access their tax records digitally
• Access available Forms W-2 and certain 1099s
• View and edit communication preferences from the IRS
• Receive and view over 200 IRS digital notices.
• Set up or change payment plans and check their balance
2. Gather and organize tax records
Having organized tax records helps taxpayers file complete and accurate tax returns and avoid errors that could delay refunds. This may also help the taxpayer identify deductions or credits that may have been overlooked.
Most income is taxable, including unemployment compensation, refund interest and income from the gig economy and digital assets. Taxpayers should watch for and gather essential forms, such as Forms W-2, Wage and Tax Statement and other income documents, when they become available in 2026.

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Year-round tax planning tips for taxpayers!

Here are some simple things taxpayers can do throughout the year to make next filing season less stressful:
1. Organize tax records. Create a system that keeps all important information together. Taxpayers can use a software program for electronic recordkeeping or store paper documents in clearly labeled folders. They should add tax records to their files as they receive them. Organized records will make tax return preparation easier and may help taxpayers discover overlooked deductions or credits.

2. Identify filing status. A taxpayer's filing status determines their filing requirements, standard deduction, eligibility for certain credits and the correct amount of tax they should pay. If more than one filing status applies to a taxpayer, they can get help choosing the best one for their tax situation with the IRS’s 'Interactive Tax Assistant, What is my filing status?' on the IRS website. Changes in family life — marriage, divorce, birth and death — may affect a person's tax situation, including their filing status and eligibility for certain tax credits and deductions.

3. Understand adjusted gross income (AGI). AGI and tax rate are important factors in figuring taxes. AGI is the taxpayer's income from all sources minus any adjustments. Generally, the higher a taxpayer's AGI, the higher their tax rate and the more tax they pay. Tax planning can include making changes during the year that lower a taxpayer's AGI.

4. Check withholding. Since federal taxes operate on a pay-as-you-go basis, taxpayers need to pay most of their tax as they earn income. Taxpayers should check that they're withholding enough from their pay to cover their taxes owed, especially if their personal or financial situations change during the year. To check withholding, taxpayers can use the 'IRS Tax Withholding Estimator'. If they want to change their tax withholding, taxpayers should provide their employer with an updated Form W-4.

5. Make address and name changes. Taxpayers should notify the United States Postal Service, employers and the IRS of any address change. To officially change a mailing address with the IRS, taxpayers must compete Form 8822, Change of Address, and mail it to the correct address for their area. For detailed instructions, see page 2 of the form. Report any name change to the Social Security Administration. Making these changes as soon as possible will help make filing their tax return easier.

6. Save for retirement. Saving for retirement can also lower a taxpayer's AGI. Certain contributions to a retirement plan at work and to a traditional IRA may also reduce taxable income.