|
|
Dear Client,
Tax season is here, and it’s time to get prepared. As the IRS begins accepting 2025 returns, staying informed about the latest tax updates, credits, and IRS guidance is essential for both individuals and businesses.
|
How to Prepare for the 2026 Tax Filing Season
The IRS has opened the 2026 filing season for 2025 tax returns. Preparing early can help you file smoothly, avoid errors, and maximize your refund.
-
Gather Your Documents
Make sure you have your W-2s, 1099s, bank statements, and digital asset records ready.
-
Use IRS Online Tools
An IRS Online Account lets you check balances, make payments, and authorize your tax professional easily.
-
Plan for Your Refund
Direct deposit is the fastest way to receive your refund. If you qualify for EITC or ACTC, refunds may arrive by March 2, 2026.
At SK Financial CPA, we provide tax services for individuals ($275) and businesses ($650), including filing and strategic planning to help you save more. For more details, visit the IRS Filing Season Resources and track refunds through Where’s My Refund?
|
|
|
Tax Credits & Savings
States, including D.C., now allow a contribution tax credit of up to $1,700 per taxpayer for donations to scholarships for low- and middle-income students. Contributions must go to state-approved Scholarship Granting Organizations (SGOs) for 2027, and states must file Form 15714 starting Jan. 1, 2026.
Health Savings Accounts (HSAs) are seeing expanded benefits under the One Big, Beautiful Bill. Telehealth and remote care no longer affect eligibility, bronze and catastrophic plans are HSA-compatible beginning Jan. 1, 2026, and some direct primary care plans allow tax-free contributions for periodic care fees. Public comments can be submitted through March 6, 2026, via the Federal e-Rulemaking Portal.
The new car loan interest deduction applies to new, made-in-America vehicles purchased after Dec. 31, 2024, with a limit of $10,000 per year. It applies to both standard deduction filers and itemizers. Lenders must report interest received in 2025 to ensure taxpayers can claim the deduction correctly (IRS Car Loan Interest Guidance).
The IRS has updated the mileage rates for 2026:
- Business driving: 72.5¢ per mile (increased by 2.5¢)
- Medical and moving trips: 20.5¢ per mile (decreased by 0.5¢)
- Charitable travel: 14¢ per mile (no change)
|
Disaster Relief Updates
The IRS is offering extended tax relief for individuals and businesses affected by recent natural disasters:
- Leech Lake Band of Ojibwe Communities (June 2025 storms and straight-line winds): Filing and payment deadlines are extended to February 2, 2026.
- Washington State (December 2025 storms, flooding, landslides, and mudslides): Filing and payment deadlines are extended to May 1, 2026.
|
Family-Related Updates
The adoption tax credit has changed for adoptions finalized in 2025 or started before 2025. Parents and guardians may open Trump Accounts for children under 18 born between 2025 and 2028, which include a one-time $1,000 government contribution, starting July 4, 2026. For more updates, review Trump Accounts Info.
Digital Assets Reporting
If you bought, sold, or exchanged cryptocurrency, NFTs, stablecoins, or other digital assets in 2025, the IRS requires you to report these transactions on your 2025 tax return.
- Taxpayers may receive Form 1099-DA from brokers for digital asset transactions.
- Everyone must answer the digital asset question on Form 1040 and report income, gains, or losses.
- Even if you didn’t receive a 1099-DA, you must still report all taxable transactions.
Accurate reporting helps avoid penalties and ensures compliance with IRS rules. Learn more: IRS Digital Assets
|
|
|
Military Tax Updates
Supplemental housing allowance payments for active-duty and eligible Reserve Component members in December 2025 are tax-free. A one-time $1,776 “Warrior Dividend” was also issued under the One, Big, Beautiful Bill to active-duty service members (O-6 and below) and qualified reserve members, which does not affect refunds or federal tax liability.
Practitioner Standards and Your Protection
At SK Financial CPA, we follow the highest professional standards to protect our clients. The IRS Office of Professional Responsibility (OPR) oversees tax professionals under Circular 230, ensuring fair treatment and accountability for any misconduct.
Here’s what clients should know:
-
Tax professionals, like CPAs and attorneys, have strict rules to follow when preparing and filing taxes.
-
The IRS carefully reviews any allegations before taking action so clients can trust that their returns are handled responsibly.
-
If misconduct occurs, there are steps in place to investigate, provide due process, and impose appropriate sanctions.
-
Most cases are resolved without formal proceedings, but serious violations can result in reprimands, suspension, or disbarment.
-
This system helps protect taxpayers and ensures that your tax filings are prepared accurately and ethically.
|
|
|
|
