Tax Season Tips
Important Dates
Filing season opened January 26, 2026
April 15, 2026 is the deadline to file or request an extension
October 15, 2026 is the extended deadline if you filed for an extension
Major Tax Law Changes for 2025 Returns
The One Big Beautiful Bill introduced several new deductions that could significantly reduce your tax bill:
Tips Deduction: You may deduct up to $25,000 of cash tips received in 2025 if you work in a job that customarily involves tipping (waiters, bartenders, hairdressers, ride-share drivers, etc.)
Overtime Deduction: Only the extra pay above your normal hourly rate qualifies, exempt up to $12,500 per year or $25,000 for couples filing jointly
Seniors Deduction: A $6,000 deduction is available for qualifying seniors
Auto Loan Interest: You can deduct car loan interest up to $10,000 for new, U.S.-assembled vehicles only, available for 2025-2028 tax years
Higher Standard Deduction: The OBBB added an extra 5% increase to the inflation-adjusted standard deduction for 2025
SALT Cap Increase: The state and local tax deduction cap has been raised from $10,000
Essential Preparation Steps
Set Up an IRS Online Account: Access it 24/7 to view account information, make payments, and manage communication preferences
Gather All Documents: W-2s, 1099s (including 1099-K for gig work), receipts for deductions, records of estimated tax payments
Set Up Direct Deposit: The IRS is phasing out paper refund checks under executive order, so you'll need a bank account for direct deposit
File Early: The IRS processes returns more quickly earlier in the season, so if you're expecting a refund, file early
Use the New Schedule 1-A: Use this new form to claim recently enacted deductions like tips, overtime, and car loan interest
Important Notes
Social Security is still taxable, though there is a new deduction this year
Gig economy income is taxable; Form 1099-K will be issued by payment apps when payments exceed $20,000 and more than 200 transactions occur
Double-check for common mistakes: missing SSNs, math errors, incomplete income statements, and unsigned returns
