Taxpayers are starting to receive their 2025 tax documents, such as W-2s, Forms 1099 or other income documents. People who sold or disposed of digital assets using a broker might receive a new Form 1099-DA from those brokers.
Examples of digital assets include:
-Convertible virtual currencies and cryptocurrencies such as Bitcoin
-Stablecoins
-Nonfungible tokens
Brokers must send taxpayers a copy of the same information they report to the IRS on Form 1099-DA by Feb. 17,2026. These are different from some other tax statements taxpayers may receive. Most of these statements will not include the basis for DA transactions in 2025 and taxpayers will have to calculate basis to determine their gain or loss.
Every taxpayer must report any related income, gains, or losses, whether they receive a Form 1099-DA or not.
Also, when people file their taxes, they must answer “yes” or “no” to the digital asset question whether they have digital assets or not.
IRS.gov Issue Number: Tax Tip 2026-07
IRS announces first day of 2026 filing season; online tools and resources help with tax filing
IR-2026-02, Jan. 8, 2026
WASHINGTON — The Internal Revenue Service announced Monday, January 26, 2026, as the opening of the nation’s 2026 filing season. This year, several new tax law provisions of the One, Big, Beautiful Bill become effective, which could impact federal taxes, credits and deductions.
Taxpayers have until Wednesday, April 15, 2026, to file their 2025 tax returns and pay any tax due. The IRS expects to receive about 164 million individual income tax returns this year, with most taxpayers filing electronically.
IRS.gov has online tools and resources taxpayers can use before, during and after filing their federal tax return. One, Big, Beautiful Provisions provides information that could help lower tax bills and potentially increase refund amounts.
“President Trump is committed to the taxpayers of this country and improving upon the successful tax filing season in 2025,” said Acting IRS Commissioner Scott Bessent. “Prior to the passage of the One, Big, Beautiful Bill, which delivered working families tax cuts, Treasury and IRS were diligently preparing to update forms and processes for the benefit of hardworking Americans, and I am confident in our ability to deliver results and drive growth for businesses and consumers alike.”
“The Internal Revenue Service is ready to help taxpayers meet their tax filing and payment obligations during the 2026 filing season,” said IRS Chief Executive Officer Frank Bisignano. “As always, the IRS workforce remains vigilant and dedicated to their mission to serve the American taxpaying public. At the same time, IRS information systems have been updated to incorporate the new tax laws and are ready to efficiently and effectively process taxpayer returns during the filing season.”
https://www.irs.gov/newsroom/irs-announces-first-day-of-2026-filing-season-online-tools-and-resources-help-with-tax-filing
WASHINGTON — The Internal Revenue Service announced Monday, January 26, 2026, as the opening of the nation’s 2026 filing season. This year, several new tax law provisions of the One, Big, Beautiful Bill become effective, which could impact federal taxes, credits and deductions.
Taxpayers have until Wednesday, April 15, 2026, to file their 2025 tax returns and pay any tax due. The IRS expects to receive about 164 million individual income tax returns this year, with most taxpayers filing electronically.
IRS.gov has online tools and resources taxpayers can use before, during and after filing their federal tax return. One, Big, Beautiful Provisions provides information that could help lower tax bills and potentially increase refund amounts.
“President Trump is committed to the taxpayers of this country and improving upon the successful tax filing season in 2025,” said Acting IRS Commissioner Scott Bessent. “Prior to the passage of the One, Big, Beautiful Bill, which delivered working families tax cuts, Treasury and IRS were diligently preparing to update forms and processes for the benefit of hardworking Americans, and I am confident in our ability to deliver results and drive growth for businesses and consumers alike.”
“The Internal Revenue Service is ready to help taxpayers meet their tax filing and payment obligations during the 2026 filing season,” said IRS Chief Executive Officer Frank Bisignano. “As always, the IRS workforce remains vigilant and dedicated to their mission to serve the American taxpaying public. At the same time, IRS information systems have been updated to incorporate the new tax laws and are ready to efficiently and effectively process taxpayer returns during the filing season.”
https://www.irs.gov/newsroom/irs-announces-first-day-of-2026-filing-season-online-tools-and-resources-help-with-tax-filing
More Seniors Now Eligible for Property Tax Relief Under New Illinois Law
The Illinois Department of Revenue (IDOR) is reminding senior homeowners of the Senior Citizens Real Estate Tax Deferral Program.
The new law amends the Senior Citizens Real Estate Tax Deferral Act, introducing two major enhancements effective in tax year 2026 and beyond:
Starting in tax year 2026:
• The maximum household income for eligibility will increase from $65,000 to $75,000 in 2026, then to $77,000 in 2027, and to $79,000 beginning in 2028 and thereafter.
• County clerks may now offer payment plans during the redemption period for county-held tax certificates. When payments are made in accordance with the plan, interest and penalties may be waived for the program.
To qualify for the Senior Tax Deferral Program, homeowners must meet the following criteria:
• be 65 years of age or older by June 1 of the filing year,
• own and occupy the primary residence for a minimum of three years,
• have no outstanding property taxes or special assessments on the property, and
• maintain adequate fire or casualty insurance.
Eligible seniors may defer up to $7,500 per year, including interest and fees, or as much as 80 percent of the equity in their home, whichever is lower.
The deadline to apply for the 2025 Senior Tax Deferral Program is March 1, 2026.
To apply, seniors must contact their local county collector’s office to receive an application. For general questions concerning the program, taxpayers may visit IDOR’s website at tax.illinois.gov or contact their local county collector’s office.
https://mytax.illinois.gov/
The new law amends the Senior Citizens Real Estate Tax Deferral Act, introducing two major enhancements effective in tax year 2026 and beyond:
Starting in tax year 2026:
• The maximum household income for eligibility will increase from $65,000 to $75,000 in 2026, then to $77,000 in 2027, and to $79,000 beginning in 2028 and thereafter.
• County clerks may now offer payment plans during the redemption period for county-held tax certificates. When payments are made in accordance with the plan, interest and penalties may be waived for the program.
To qualify for the Senior Tax Deferral Program, homeowners must meet the following criteria:
• be 65 years of age or older by June 1 of the filing year,
• own and occupy the primary residence for a minimum of three years,
• have no outstanding property taxes or special assessments on the property, and
• maintain adequate fire or casualty insurance.
Eligible seniors may defer up to $7,500 per year, including interest and fees, or as much as 80 percent of the equity in their home, whichever is lower.
The deadline to apply for the 2025 Senior Tax Deferral Program is March 1, 2026.
To apply, seniors must contact their local county collector’s office to receive an application. For general questions concerning the program, taxpayers may visit IDOR’s website at tax.illinois.gov or contact their local county collector’s office.
https://mytax.illinois.gov/
IRS to Phase Out Paper Tax Refund Checks Starting with Individual Taxpayers
WASHINGTON — The Internal Revenue Service, working with the U.S. Department of the Treasury, today announced that paper tax refund checks for individual taxpayers will be phased out beginning on Sept. 30, 2025, as required by Executive Order 14247, to the extent permitted by law. This marks the first step of the broader transition to electronic payments.
The IRS will publish detailed guidance for 2025 tax returns before the 2026 filing season begins. Until further notice, taxpayers should continue using existing forms and procedures, including those filing their 2024 returns on extension of a due date prior to Dec. 31, 2025.
The change is designed to:
Protect taxpayers: Paper checks are over 16 times more likely to be lost, stolen, altered, or delayed than electronic payments. Direct deposit also avoids the possibility that a refund check could be returned to the IRS as undeliverable.
Speed up refunds: Electronic refunds give taxpayers faster access to refunds, with payments issued in less than 21 days if filing electronically, choosing direct deposit and there are no issues with the return, whereas nonelectronic payments may take 6 weeks or longer for refunds sent by mail.
Cut costs: Electronic payments are more efficient and cost less than paper.
What this means for individual taxpayers:
Filing stays the same: Taxpayers should continue to file their returns as they normally would, using one of the existing filing options.
Refunds go digital: Most refunds will be delivered by direct deposit or other secure electronic methods.
Help for those without access to bank accounts: Options such as prepaid debit cards, digital wallets or limited exceptions will be available.
Act now: Taxpayers should make sure they know their banking information or consider opening a free or low-cost account. Visit FDIC: GetBanked and MyCreditUnion.gov for account options.
Most individual taxpayers already receive their refunds by direct deposit into their bank accounts. During the 2025 tax filing season, the IRS issued more than 93.5 million tax refunds to individual income tax filers, and 93% of those, almost 87 million refunds, were issued through direct deposit. Only 7 percent of individual refund recipients received their refunds by check through the mail.
Next steps
Executive Order 14247 also applies to payments made to the IRS. Taxpayers should continue to use existing payment options until further notice. Additional guidance and information for filing 2025 taxes will be issued prior to the 2026 filing season.
The IRS will share updated guidance on IRS.gov/modernpayments and through outreach efforts nationwide.
https://www.irs.gov/newsroom/irs-to-phase-out-paper-tax-refund-checks-starting-with-individual-taxpayers
The IRS will publish detailed guidance for 2025 tax returns before the 2026 filing season begins. Until further notice, taxpayers should continue using existing forms and procedures, including those filing their 2024 returns on extension of a due date prior to Dec. 31, 2025.
The change is designed to:
Protect taxpayers: Paper checks are over 16 times more likely to be lost, stolen, altered, or delayed than electronic payments. Direct deposit also avoids the possibility that a refund check could be returned to the IRS as undeliverable.
Speed up refunds: Electronic refunds give taxpayers faster access to refunds, with payments issued in less than 21 days if filing electronically, choosing direct deposit and there are no issues with the return, whereas nonelectronic payments may take 6 weeks or longer for refunds sent by mail.
Cut costs: Electronic payments are more efficient and cost less than paper.
What this means for individual taxpayers:
Filing stays the same: Taxpayers should continue to file their returns as they normally would, using one of the existing filing options.
Refunds go digital: Most refunds will be delivered by direct deposit or other secure electronic methods.
Help for those without access to bank accounts: Options such as prepaid debit cards, digital wallets or limited exceptions will be available.
Act now: Taxpayers should make sure they know their banking information or consider opening a free or low-cost account. Visit FDIC: GetBanked and MyCreditUnion.gov for account options.
Most individual taxpayers already receive their refunds by direct deposit into their bank accounts. During the 2025 tax filing season, the IRS issued more than 93.5 million tax refunds to individual income tax filers, and 93% of those, almost 87 million refunds, were issued through direct deposit. Only 7 percent of individual refund recipients received their refunds by check through the mail.
Next steps
Executive Order 14247 also applies to payments made to the IRS. Taxpayers should continue to use existing payment options until further notice. Additional guidance and information for filing 2025 taxes will be issued prior to the 2026 filing season.
The IRS will share updated guidance on IRS.gov/modernpayments and through outreach efforts nationwide.
https://www.irs.gov/newsroom/irs-to-phase-out-paper-tax-refund-checks-starting-with-individual-taxpayers
Changes in the One Big Beautiful Bill Act of 2025
On July 4, 2025 the President signed the new 2025 Tax Bill, known as the One Big Beautiful Bill Act or OBBB. There are tons of rumors going around about what changes and what doesn’t, but here is the correct information that will affect you and most Americans.
Deductions, Brackets and Rates
Tax rates did not increase or decrease from 2025. I know what you have read, but they are the same in 2025 that they were in 2024, and that includes capital gains rates.
Tax brackets increased slightly, meaning that you can make a bit more money this year without going into a new bracket.
There are two types of deductions: the standard deduction (which did increase by about $3,000 for a married couple from 2024); and itemized deductions. All Americans are allowed the standard deduction, which for 2025 is $15,750 if single and $31,500 if married. If you are able to come up with more than that from a short list of itemized deductions, you are allowed to deduct more than the standard deduction. There are five main categories of allowable itemized deductions:
1. Medical deductions which did not change from 2024, and need to be pretty large in order to deduct them;
2. Taxes, which increased to a maximum deduction of $$40,000 in 2025 vs. $10,000 in 2024. This category includes property tax and state and local income tax paid;
3. Interest paid on your home mortgage, which is unchanged from 2024;
4. Charitable contributions, which are unchanged from 2024
5. Miscellaneous itemized deductions, which are also unchanged from 2024, the only significant one is gambling losses.
There is a new deduction for seniors which allows an additional deduction of $6,000 for each filer that has reached age 65 by December 31, 2025 ($12,000 if both 65), in addition to the normal small additional senior deduction. The bad news is that Social Security is still taxable if the deduction is not enough to offset it, and the deduction phases out for seniors making more than $75,000 for a single filer or $150,000 for a joint filer.
Car Loan Interest Deduction
There is also a new deduction this year for car loan interest if you bought a new (not used) car in 2025 (and 2026-2028) if it was assembled in the US. This deduction phases out starting at $100,000 of income if single, and $200,000 if filing jointly. This amount is deductible in addition to the standard deduction, so you don’t need to itemize.
Tip Deduction
For those folks whose W-2 reflects tip income, or who self-report tip income, they can deduct the lesser of the tip income from their W-2’s or $25,000. This deduction phases out starting at $150,000 of income if single, and $300,000 if filing jointly. This amount is deductible in addition to the standard deduction, so you don’t need to itemize.
Overtime Deduction
For those folks whose W-2 reflects overtime pay income they can deduct the lesser of the overtime income from their individual W-2’s or $12,500 each. This deduction phases out starting at $150,000 of income if single, and $300,000 if filing jointly. This amount is deductible in addition to the standard deduction, so you don’t need to itemize.
Tax Credits
The credit for children reported as dependents on your returns increases from $2,000 to $2,200.
The credit for an electric car ends on September 30, 2025, and the credits for insulation, storm windows, doors, furnaces, water heaters, solar power, geothermal energy and wind energy systems end on December 31, 2025.
There are a number of individual changes that go into effect in 2026, but this short summary addresses 2025 individual tax changes. We are able to help you plan for any major tax events such as these law changes, retirement, home sales or inheritances if you would give us a call for an appointment.
Summer activities that could impact next year’s tax return
IRS Tax Tip 2025-37, June 5, 2025
Summer is a time for fun but it’s never the wrong time to be thinking about taxes – and some summer activities could have an impact. Here are a few summertime activities and tips on how taxpayers should consider them for tax season.
Marriage
Wedding season is upon us, and newlyweds can make their tax filing easier by taking two simple steps now:
First, report any name change to the Social Security Administration.
Next, notify the United States Postal Service, employers and the IRS of any address change. To officially change their mailing address with the IRS, taxpayers must complete and submit Form 8822, Change of Address. See page 2 of the form for detailed instructions.
Summer day camp
If a taxpayer is sending a child to summer day camp, the cost may count toward the Child and Dependent Care Credit.
Business travel
Kids may have the summer off, but parents generally don’t – and business travel happens year-round. Tax deductions are available for certain people who travel away from their home or main place of work for business reasons. Whether a business traveler is away for a few nights or all summer long, it’s important for them to remember the tax rules related to business travel.
Part-time work
While summertime and part-time workers may not earn enough to owe federal income tax, they should file a tax return to get any refund they may be owed. Part-time and seasonal workers can visit IRS.gov to learn more about who should file a tax return.
Some taxpayers earn summer income with a side hustle or doing gig work. They can visit the Gig economy tax center at IRS.gov to learn how participating in the gig economy can affect their taxes. If taxpayers are paid through payment apps for goods and services during the year, they may receive an IRS Form 1099-K for those transactions. For more information, go to IRS.gov/1099k.
Home improvements
The IRS has information to help taxpayers take advantage of tax credits for home improvements. If taxpayers make qualified energy efficient improvements to their home after Jan. 1, 2023, they may qualify for a tax credit up to $3,200.
These types of improvements include energy efficient home improvement credits for things like water heaters, exterior windows and doors and heating and air conditioning installations. Residential clean energy credits are available for taxpayers who install solar water heaters, fuel cells and battery storage or solar, wind and geothermal power generation. Taxpayers can visit the Home energy tax credits page on IRS.gov to learn more.
https://www.irs.gov/newsroom/summer-activities-that-could-impact-next-years-tax-return