DEADLINES
Individual/C-Corp/Trust/FBAR: April 15, 2026
Partnership/S-Corp: March 16, 2026
TAX FILING SEASON BEGIN DATE: February 16, 2026. While not the official date of January 26, out of an abundance of caution, I will not attempt to file returns until such date due to changes to tax laws combined with reduced IRS staff as well as state tax forms that will need finalizing. This should help avoid issues and delays from prior years. You should still submit your documents and information ASAP should you receive them beforehand.
LATE-SEASON SUBMISSION: Submitting majority of documents or scheduling a tax preparation appointment after March 27, 2025 will incur a fee increase of 1.5x the fee to be charged. Exceptions will be made for documents received demonstrably late and health/family issues. Please consider this a disincentive to wait rather than a penalty. You may submit your documents as you receive them so I can build file. Submitting a majority of available documents before March 27 while scheduling appointment for day after such date will avoid fee increase.
DIRECT DEPOSIT MANDATORY FOR REFUNDS (NO CHECKS ISSUED): As of October 1, 2025, the IRS will no longer disburse checks for refunds. Executive Order 14247 cites operational delays, inefficiencies, and increased vulnerability to theft as reasons for instituting change. Any clients who customarily received refunds by check will need to provide routing and account numbers for bank account.
APPOINTMENTS: Appointments may be made online at www.murthataxllc.com or by calling office.
SAFESEND: You may upload documents, review and sign your return, and pay your invoice all through one platform. Instructions and demonstrational videos are available on my website. No registration required. If you would like access to upload documents through the SafeSend Exchange portal, please let me know. You may also submit documents by mail, email, or uploading to another portal of choice (e.g. Dropbox).
ENGAGEMENT LETTERS: If an email address is on file for all taxpayers listed on return, you will receive a copy via SafeSend (noreply@safesendreturns.com); if not or as otherwise instructed, a copy will be sent to the mailing address on file. If a signed copy is not remitted to my office, submission of your documents will be deemed acceptance of the terms of the engagement letter. You may request a copy at any time.
FEE INCREASE: Fees will generally be increased 3% to account for inflation during 2025, in addition to any changes to your filing status or forms/schedules required to be filed.
530A ACCOUNT (“TRUMP ACCOUNT”): Traditional IRA for U.S. citizens under age 18 as of 12/31 of the year opened. Taxpayers must elect to open by either submitting Form 4547 with tax return or using online portal scheduled to be available Summer 2026. Only one account per child. Contributions limited to $5k per child per year. Contributions not tax-deductible and can’t be made until July 4, 2026. Distributions generally not allowed until after child turns 18. For children born between January 1, 2025 and December 31, 2028, federal government will contribute $1,000 upon election (not subject to limit). Check with your employer about matching contributions.
IRS/SOCIAL SECURITY/DOGE/STIMULUS CHECK SPAM CALLS/TEXTS/EMAILS: If someone on phone or email ever puts you under threat of arrest or demands money be sent to them immediately, do not reply. The first point of contact with the IRS will be a letter in the mail. Please do not provide your SSN or other sensitive details to someone from unverified number or email.
Major changes for 2025 tax year:
SALT deduction: Cap raised to $40,000. Phaseout begins at $500,000 MAGI and ends at $600,000.
Enhanced Deduction for Seniors: Taxpayers ages 65 and older are eligible for bonus to standard deduction of up to $6,000 per person. If married, you must file jointly to claim. Subject to MAGI phaseout.
“No Tax on Overtime”: Taxpayers who received qualified overtime compensation may be eligible to deduct up to $12,500. If married, you must file jointly to claim. Subject to MAGI phaseout.
Child Tax Credit: Increased to $2,200 per qualifying child under 17 ($2,000 prior). Subject to phaseout.
Empire State Child Credit: Increased to $1,000 per child under 4; $330 per child under 17.
Major changes for 2026 tax year:
Educator Expense Deduction: Expenses in excess of $300 above-the-line deduction will count towards miscellaneous deduction subject to 2% AGI threshold that counts towards itemized deductions (as in 2017).
Charitable Contributions: Taxpayers will be eligible for $1,000 above-the-line deduction ($2,000 for MFJ). For taxpayers itemizing deductions, contributions are eligible for deduction to extent exceed 0.5% of AGI.
Dependent Care Assistance: Taxpayers may exclude up to $7,500 of amounts paid or incurred by an employer for dependent care assistance programs ($5,000 prior).
DOCUMENTS AND INFORMATION TO PROVIDE
Income: Wages (Form W-2), retirement distributions (1099-R), Social Security benefits (SSA-1099), interest (1099-INT), dividends (1099-DIV), sales of stock/bonds (1099-B, Composite 1099), miscellaneous income (1099-MISC), nonemployee compensation (1099-NEC), payment card and third-party network transactions (1099-K), rental property income and expenses, Schedule K-1 (partnership, S-Corp, trust), unemployment (1099-G), alimony received, gambling winnings (W-2G), debt cancellation (1099-C), 529 savings plan distribution (1099-Q), HSA distribution (1099-HSA), sales of cryptocurrency (1099-DA) or other property
Deductions: Out-of-pocket medical and dental expenses, health insurance premiums (Form 1095-A), long-term care premiums, mortgage interest (Form 1098), real estate and/or personal property taxes paid, charitable contribution amounts and itemized receipt if donated goods/items, student loan interest (1098-E), tuition (1098-T), estimated tax payments (dates and amounts), child care expenses, alimony paid, gambling losses
Self-employed persons: Revenue, itemized list of expenses, home office square footage, car mileage breakdown
Contributions: Retirement plan (e.g. IRA), 529 education savings plan, Health Savings Account (Form 5498-SA)
Life Events: Change/sale of residence, birth/adoption, marriage/separation/divorce, start new business, change jobs, retirement, provide room and/or money to dependent person, work multiple states, become business partner
Please provide all information as soon as practicable and, if an individual filer, especially before Friday, March 20. Please do not wait for that one last form to come in as you may be forced to go on extension and have your return filed after the April 15 deadline. Please remember that an extension of time to file is not also an extension of time to pay so payment amount may need to be calculated and remitted also. Extended returns due October 15.