News

Taxes

• The IRS will start accepting tax returns for 2025 tax year around January 27th, 2026.

•  The filing deadline has been set to be April 15th, 2026. I suggest not waiting, as the longer we wait the more we forget about it. Even if you owe taxes, filing now and paying later is a much better option.

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Standard Deduction

​$15,750 for single taxpayers.

$31,500 for married couples filing jointly.

$23,625 for Head of Household

Age-related standard deduction has increased slightly to help older adults reduce their taxable income. Here are the details:

• Single filers and heads of households aged 65 and older: The additional standard deduction is $2,000.

• Married couples filing jointly where one spouse is 65 or older: Each qualifying spouse gets an additional $1,600, totaling $3,200 if both spouses are 65 or older.

• Blind individuals: Those who are 65 or older and blind receive an additional standard deduction, which would be $2,000 for single filers or heads of household, $1,600 for each filer who is blind if married filing jointly

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Child Tax Credit for 2025 tax filing season

• Child Tax Credit is $2,200 per qualifying child .

• The refundable portion of the credit is $1,700 per qualifying child.

• ​To qualify, the child must be under 17 years old at the end of the tax year, be a U.S. citizen, U.S. national, or U.S. resident alien, and have a valid Social Security number.

• The credit begins to phase out for individual taxpayers with incomes over $200,000 and for married couples filing jointly with incomes over $400,000.

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Earned Income Tax Credit for the 2025 tax filing season

The Earned Income Tax Credit (EITC) is a benefit for low- to moderate-income workers and families, particularly those with children. For the 2025 tax season, the maximum EITC amount is $8,046 for taxpayers with three or more qualifying children. The credit amount decreases as income rises and is available for lower income levels as well.

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To qualify for the EITC, you must have earned income and meet certain adjusted gross income (AGI) limits. The maximum income limits for 2025 are:

• $61,555 for Single/HOH taxpayers with three or more qualifying children

• $57,310 for Single/HOH taxpayers with two qualifying children

• $50,434 for Single/HOH taxpayers with one qualifying child

• $19,104 for Single/HOH taxpayers with no qualifying children

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• $68,675 for Married filing Joint taxpayers with three or more qualifying children

• $64,430 for Married filing Joint taxpayers with two qualifying children

• $57,554 for Married filing Joint taxpayers with one qualifying child

• $26,214 for Married filing Joint taxpayers with no qualifying children

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New deductions for itemizers and non-itemizers.

• No tax on tips. You may be eligible to take a deduction for qualified tips paid to you in 2025. You can’t deduct more than $25,000 of those tips. Your deduction will be limited if your modified adjusted gross income is more than $150,000 ($300,000 if married filing jointly). To be eligible, you and/or your spouse who received the tips must have a valid social security number (SSN). If you are married, you must file a joint return.

• No tax on overtime. If you earned qualified overtime, you may be eligible to deduct up to $12,500 ($25,000 if married filing jointly) of your qualified overtime compensation. Your deduction will be limited if your modified adjusted gross income is more than $150,000 ($300,000 if married filing jointly). To be eligible, you and/or your spouse who received the overtime must have a valid SSN. If you are married, you must file a joint return.

• No tax on car loan interest. If you paid or accrued qualified passenger vehicle loan interest on a vehicle you purchased in 2025 for personal use, you may be eligible to deduct up to $10,000 of that interest. Your deduction will be limited if your modified adjusted gross income is more than $100,000 ($200,000 if married filing jointly).

• Enhanced deduction for seniors. If you were born before January 2, 1961, you may be eligible for an enhanced senior deduction. Your deduction will be limited if your modified adjusted gross income is more than $75,000 ($150,000 if married filing jointly). To be eligible, you and/or your spouse must have a valid SSN. If you are married, you must file a joint return. The maximum amount of the deduction is $6,000 ($12,000 if both spouses are eligible).

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New above‑the‑line charitable deduction

• “Beginning in tax year 2026, taxpayers who do not itemize can still deduct charitable contributions… Single filers: up to $1,000; Married filing jointly: up to $2,000.”

• “Annual deduction limits of $1,000 for single filers and $2,000 for married couples filing jointly… available only to taxpayers claiming the standard deduction.”

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IRS Free Direct File Program

• The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, ended both IRS Direct File and IRS Free File partnerships.

• Even though the IRS programs were eliminated, some private companies still offer free filing, but with restrictions. These are not IRS programs, and they often have limitations or upsells.

  • These programs require you to understand what is being asked and does not offer professional information.​

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Tracking Your Refund

• On the IRS.gov site, taxpayers who filed their returns can see their refund status on the "Where's My Refund?" tool. To see the status, you must enter the following information:

  • Your Social Security or individual taxpayer ID number (ITIN)

  • Your filing status

  • The exact refund amount on your return

• Once the information is entered, you will see one of the following statuses:

  • Return Received– The IRS received your return and is processing it.

  • Refund Approved – The IRS approved your refund and is preparing to issue it by the date shown.

  • Refund Sent – The IRS sent the refund to your bank or you in the mail. It may take five days for it to show in your bank account or several weeks for your check to arrive in the mail.

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Why You Should Get an IRS Identity Protection PIN (IP PIN)

• An IRS IP PIN is one of the strongest protections you can put on your tax account. It’s a 6‑digit number known only to you and the IRS, and it prevents anyone else from filing a tax return using your Social Security number.

• The IRS describes it as a tool that “prevents someone else from filing a tax return using your SSN” and calls it a “vital tool to protect taxpayers from fraudsters”.

• ​You will need a new PIN every year and this can be found on the IRS Website if you create an account there. Each person needs a separate PIN and account.

  • The IRS makes your IP PIN visible: Mid‑January through mid‑November each year.

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Student Information

• Form 1098-T from the school(s) attended.

• Qualified education expenses

  • Tuition​

  • Mandatory Fees

  • Books

  • Supplies

  • Equipment

• Who claims the deduction, All the following test must be met.

  • If student is a dependent the parent claims. ​

  • Tests to determine dependency

    • Relationship

      • Son or daughter​

      • Stepchild

      • Foster child​

      • Brother or sister

      • Step-sibling

      • Descendant of any of the above (grandchild, niece, nephew)

    • Age

      • Under 19, or​

      • Under 25 and a full-time student for at least 5 months during the year

    • Residency

      • Live with you more than half the year​

        • Living at college counts as living with you​

    • Support

      • Cannot provide more than half their own support​

        • Scholarships do not count as student providing support​

        • Student loans count based on whoever is responsible for repayment

    • Joint Return

      • Cannot file a joint return with a spouse unless​

        • It is only to claim a refund​

        • No tax liability exists for either spouse

        • No credits being claimed

    • Citizenship Test

      • Be a U.S. Citizen​

      • U.S. Resident alien

      • U.S. National

      • Resident of Canada or Mexico

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Energy Efficient Home Improvement Credit

• The IRS allows a 30% tax credit for qualified energy‑efficient improvements made to your primary residence (existing home only).

  • You can claim up to $3,200 per year in credits.

  • The credit equals 30% of qualified expenses, including certain labor costs.

• What homes qualify:

  • Must be your main home (primary residence)​

  • Must be an existing home, not new construction

  • Must be located in the United States

• Key things to know:

  • No lifetime limit​

  • Credit is nonrefundable. It can reduce your tax to zero but cannot generate a refund.

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As always, we are here to help as best we can.