Tax filing tips 2026

{{whyLabel}}: Accurate reporting is the foundation of a tax return, and 2025 introduces specific deductions for certain income types.

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• Gather all W-2s and 1099s (NEC, MISC, INT, DIV).
• Separate 'Qualified Tips' and 'Qualified Overtime' pay, as these may be eligible for deductions up to $25,000 and $12,500 respectively under 2025 rules.
• Organize records of any side-hustle income or gig work.

{{doneWhenLabel}}: All 2025 income documents are digitized and categorized in a secure folder.

{{whyLabel}}: The Energy Efficient Home Improvement Credit offers significant savings but requires specific manufacturer data.

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• Locate receipts for insulation, exterior doors (limit $500), or windows (limit $600) installed in 2025.
• Find the 'Qualified Manufacturer Identification Number' (QMID) for heat pumps or biomass stoves, as this is mandatory for the 2025 claim.
• Confirm the total project cost to claim the 30% credit (up to $3,200 total).

{{doneWhenLabel}}: Receipts and QMID numbers for all 2025 home energy projects are ready for entry.

{{whyLabel}}: The 2025 standard deduction is high, but new SALT limits may make itemizing more attractive for some.

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• Note the 2025 standard deduction: $15,750 (Single) or $31,500 (Married Filing Jointly).
• Calculate total itemized expenses including the increased State and Local Tax (SALT) limit of $40,000 for 2025.
• Add mortgage interest (on up to $750,000 debt) and charitable 'bunching' contributions.

{{doneWhenLabel}}: A clear decision is made on whether to itemize or take the standard deduction.

{{whyLabel}}: This is one of the most overlooked credits for low-to-moderate income earners who contribute to retirement.

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• Check your 2025 Adjusted Gross Income (AGI) against the limits: $39,500 (Single) or $79,000 (Joint).
• Verify total 2025 contributions to IRAs or 401(k) plans.
• Calculate the potential credit (up to $1,000 for individuals or $2,000 for couples).

{{doneWhenLabel}}: Eligibility for the Saver's Credit is confirmed and the contribution amount is noted.

{{whyLabel}}: K-12 educators often miss this 'above-the-line' deduction which doesn't require itemizing.

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• Total your unreimbursed classroom expenses (books, supplies, computer equipment).
• Enter up to $300 ($600 if both spouses are educators) directly on Schedule 1.
• Keep receipts for professional development courses, as these are also qualifying expenses for 2025.

{{doneWhenLabel}}: The educator deduction is correctly reflected on the draft tax return.

{{whyLabel}}: A new provision for 2025 allows a deduction for interest paid on personal car loans.

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• Obtain the 2025 interest statement from your auto lender for any new personal-use vehicle.
• Verify the vehicle was purchased in 2025 and meets the 'new' vehicle requirement.
• Claim up to $10,000 in qualified interest as a personal deduction.

{{doneWhenLabel}}: Auto loan interest is calculated and entered into the appropriate 2025 tax form.

{{whyLabel}}: Using the right software ensures that the complex 2025 logic (like the new tip/overtime deductions) is handled automatically.

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• Access the IRS website to find 'Free File' providers if your income is below the threshold.
• Input all gathered data, ensuring the 'Clean Vehicle Credit' is claimed if you purchased an EV before September 30, 2025.
• Double-check the 'Enhanced Senior Deduction' ($6,000 additional) if you are 65 or older.

{{doneWhenLabel}}: The 2025 tax return is electronically filed and an 'Accepted' notification is received.

{{whyLabel}}: Ensuring the refund reaches the correct account prevents long delays and potential fraud.

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• Use the 'Where’s My Refund?' tool on the official IRS website 24 hours after e-filing.
• Confirm the refund amount matches your filing exactly.
• Check your bank statement for the deposit within 21 days.

{{doneWhenLabel}}: The tax refund is confirmed as deposited in the correct bank account.

{{whyLabel}}: The IRS can audit returns for several years; having organized records is your best defense.

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• Save a PDF copy of the final filed 1040 and all supporting schedules.
• Store physical receipts for energy credits and educator expenses in a labeled envelope.
• Keep records of 'Qualified Tips' and 'Overtime' calculations used for the 2025 deductions.

{{doneWhenLabel}}: A complete digital and physical archive of the 2025 tax year is secured.