NEWS AND UPDATES

Hello everyone--looking forward to seeing you again this year!  The IRS has announced they will start accepting electronic returns on January 26th.  We will start preparing returns on January the 12th, but the transmission won't happen until the IRS officially opens on the 26th.

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FARMING AND OKLAHOMA TAX

Throughout the years, The federal government has had little interest in auditing farms. As a matter of fact, we have never had one audited. However, Oklahoma has begun to audit a few farms each year. It was fine, but we want to just remind everyone who has a farm to keep up with their receipts. We don't need the receipts in the office, just totals as always, but it important to keep them.

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CHANGES FROM THE "ONE BIG BEAUTIFUL BILL".

The "One Big Beautiful Bill" Act (OBBBA), signed into law in July 2025, makes several significant changes for tax year 2025 by extending provisions of the 2017 Tax Cuts and Jobs Act (TCJA) and adding new temporary deductions.

Key changes affecting individual taxpayers for tax year 2025 (filed in early 2026) include:

Permanent Extensions of TCJA Provisions

Many popular tax cuts from the TCJA were made permanent, providing certainty and preventing tax increases that were otherwise scheduled.

• Individual Income Tax Rates: The seven existing federal income tax brackets (10%, 12%, 22%, 24%, 32%, 35%, and 37%) are now permanent, with income thresholds adjusted for inflation.

• Standard Deduction: The increased standard deduction amounts remain in place. For 2025, they are:

• Single filers: $15,750.

• Married filing jointly: $31,500.

• Head of household: $23,625.

• Child Tax Credit: The maximum credit is permanently increased to $2,200 per qualifying child (under age 17), with a portion being refundable.

• Personal Exemptions: The suspension of personal and dependent exemptions remains permanent.

• Estate and Gift Tax Exemption: The higher exemptions were made permanent, rising to $15 million per individual (and $30 million per married couple) starting in 2026.

• The standard mileage rate deduction this year has increased to $0.70 per mile

New Temporary Deductions (2025-2028)

• Seniors Deduction: An additional deduction of $6,000 for taxpayers aged 65 and older ($12,000 if both spouses qualify). This benefit phases out for those with modified adjusted gross incomes (MAGI) over $75,000 (single filers) or $150,000 (joint filers).

• Tip Income Deduction: Eligible workers in traditionally tipped occupations can deduct up to $25,000 of qualified tip income. This deduction phases out for MAGI over $150,000 (single) or $300,000 (joint).

• Overtime Pay Deduction: Individuals can deduct up to $12,500 of qualified overtime pay ($25,000 for joint filers) required by the Fair Labor Standards Act (FLSA). This also phases out for MAGI over $150,000 (single) or $300,000 (joint).

• Auto Loan Interest Deduction: A deduction of up to $10,000 in interest paid on new loans for personal-use, U.S.-assembled vehicles. Income phaseouts apply, starting at a MAGI of $100,000 (single) or $200,000 (joint).

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IF YOU ARE FILING WITH DEPENDENTS:

• Make sure you only claim your child, grandchild, brother/sister, niece/nephew.

• Step children can only be claimed if the proper parent is a co-filer on your return

• Make sure you only claim dependents who have lived with you for at least 183 days this year.

• If someone else claims food stamps for your dependent, that will create a problem.

• If they are school age, make sure the school shows you as the responsible parent.

• Make sure you have at least one utility bill, rent receipt/mtg payment at your residence in your name.

• Make sure we file the same address on your return as the receipts show.

• Make sure you have adequate documentation saved that proves your relationship to the dependent.

 

SELF EMPLOYMENT/1099 EARNERS:

• As mentioned earlier, make sure you claim all your income. This should at least equal bank deposits.

• Add up your expense receipts and mileage. (keep documentation at your home, we only need totals)

• If you receive a 1099, remind the giver they need to turn in their part by January 31st.

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REASONS REFUNDS CAN BE DELAYED:

• Recently, the IRS has been randomly verifying identities. This slows things down.

• You file a w2 or 1099 and your employer or contractor doesn't turn their part in on time. January 31st.

• Someone else is claiming your dependents on their return

• Someone else has been getting food stamps for your dependents

 

FEEL FREE TO USE DROP BOX OR LEAVE AT THE FIRST DESK

Some days are busy and you are in a hurry. We understand that you don't enjoy sitting around waiting.

Sometimes you may just need to get somewhere fast. It's never a problem for you to drop off. You can drop your info in the locked black box by the front door, or leave with Brandi.  We appreciate you!!

 

DROP IN AND APPOINTMENT DATES:

January through February are drop in days. March 1st through December 31st are appointment days. This time frame allows for you to come in with no waiting. If you can wait, we recommend setting an appointment, but you are welcome to choose either time you wish.

 

FEES THIS YEAR

This will Our fees have stayed the same for the third year now. We work hard to be the least expensive tax service in the area.