01/07/2026
Tax law changes this tax year⬇️
1. “One Big Beautiful Bill” - Bigger Refunds Expected and New Deductions
The "One Big Beautiful Bill" is fully in effect for the 2025 tax year (filed in 2026), and initial numbers project large refunds for many taxpayers.
Major highlights:
Higher standard deductions: All filing statuses now qualify for increased standard deductions—helping boost refunds across the board.
Expanded Earned Income Tax Credit (EITC): Updated income thresholds and rules may make more families eligible and increase refund amounts.
Additional deduction for seniors: Taxpayers age 65+ can claim up to $6,000 in extra deductions to lower taxable income.
New tips and overtime deductions: Workers in service and hospitality industries may qualify for new above-the-line deductions on eligible tips and overtime pay.
Why it matters: More taxpayers will see larger refunds, but they may also face new forms, rules, and questions. That creates a clear opportunity for tax professionals to step in as trusted advisors.
2. 1099-K Reporting Threshold Returns to $20,000 / 200 Transactions
The IRS has officially reversed course on Form 1099-K reporting. Payment platforms like PayPal, Venmo, and online marketplaces now only issue a 1099-K when a taxpayer exceeds $20,000 and 200 transactions in a year—rolling back the previously proposed $600 threshold.
