Gunnell's Tax Service

02/14/2026

01/14/2026

Estimated tax payments due 1-15-26.

Estimated tax payments for the fourth quarter of 2025 are due by January 15. If you expect to owe tax of $1,000 or more, you may need to make an estimated tax payment. You can pay online, by phone or from your mobile device. It's easy to use your Online Account to make an estimated tax payment.

Make your payment today at http://www.irs.gov/estimatedtaxes.

01/13/2026

📬 Tax season is here in North Carolina

The IRS and NCDOR have begun accepting 2025 income tax returns on Jan. 13 for Corporate Income, Franchise, and Partnerships, and on Jan. 18 for Estates and Trusts. Returns are due April 15. For more info, please visit https://bit.ly/4qS2XCH.

File electronically for a faster, safer, and easier experience. 💙

01/12/2026

🇺🇸 Keep more of what you earn. 🇺🇸 With the "One, Big, Beautiful Bill" bringing significant changes to the tax code, now is not the time to guess with your finances. You work hard for your paycheck—Gunnell’s Tax Service works hard to protect it. Don't let new regulations catch you off guard. We provide honest, expert tax preparation that prioritizes your bottom line, not the IRS. 📞 Call today to schedule your appointment: 276-755-4541. 📍 Located at: 910 Peakview Road, Cana VA.

01/06/2026

IRS sets 2026 business standard mileage rate at 72.5 cents per mile, up 2.5 cents

The Internal Revenue Service today announced that the optional standard mileage rate for business use of automobiles will increase by 2.5 cents in 2026, while the mileage rate for vehicles used for medical purposes will decrease by half a cent, reflecting updated cost data and annual inflation adjustments.

Optional standard mileage rates are used to calculate the deductible costs of operating vehicles for business, charitable, and medical purposes. Additionally, the optional standard mileage rate may be used to calculate the deductible costs of operating vehicles for moving purposes for certain active-duty members of the Armed Forces, and now, under the One, Big, Beautiful Bill, certain members of the intelligence community.

Beginning Jan. 1, 2026, the standard mileage rates for the use of a car, van, pickup or panel truck will be:

72.5 cents per mile driven for business use, up 2.5 cents from 2025.
20.5 cents per mile driven for medical purposes, down a half cent from 2025.
20.5 cents per mile driven for moving purposes for certain active-duty members of the Armed Forces (and now certain members of the intelligence community), reduced by a half cent from last year.
14 cents per mile driven in service of charitable organizations, equal to the rate in 2025.
The rates apply to fully-electric and hybrid automobiles, as well as gasoline and diesel-powered vehicles.

While the mileage rate for charitable use is set by statute, the mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes, meanwhile, is based on only the variable costs from the annual study.

Under the law, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses, except for certain educator expenses. However, deductions for expenses that are deductible in determining adjusted gross income remain allowable, such as for certain members of a reserve component of the Armed Forces, certain state and local government officials, certain performing artists, and eligible educators. Alternatively, eligible educators may claim an itemized deduction for certain unreimbursed employee travel expenses. In addition, only taxpayers who are members of the military on active duty or certain members of the intelligence community may claim a deduction for moving expenses incurred while relocating under orders to a permanent change of station.

Use of the standard mileage rates is optional. Taxpayers may instead choose to calculate the actual costs of using their vehicle.

Taxpayers using the standard mileage rate for a vehicle they own and use for business must choose to use the rate in the first year the automobile is available for business use. Then, in later years, they can choose to use the standard mileage rate or actual expenses.

For a leased vehicle, taxpayers using the standard mileage rate must employ that method for the entire lease period, including renewals.

09/30/2025

The IRS has announced that paper refund checks for individual taxpayers will begin to be phased out on Sept. 30. The change follows Executive Order 14247 and is part of a broader move toward electronic payments.

According to the tax agency, direct deposit and other digital options are safer, faster, and less costly than mailing checks.
Paper checks are far more likely to be lost or delayed, while electronic payments typically arrive within 21 days when returns are filed electronically. Mailed refunds can still take six weeks or longer.

The IRS says most taxpayers will not notice a difference. More than 93 percent of refunds in 2025 were already issued by direct deposit.

For the small percentage who still receive paper checks, the agency is encouraging them to prepare by reviewing their banking information or opening a low-cost account. Alternatives like prepaid debit cards and digital wallets will also be available.

09/26/2025

Virginia Department of Taxation This fall, eligible taxpayers will receive a rebate of up to $200 for individual filers and up to $400 for joint filers. To receive a rebate, you must have a tax liability & file your 2024 individual income taxes by Nov. 3. Check your eligibility:

The General Assembly passed a law giving taxpayers with a tax liability a rebate of up to $200 for individual filers and up to $400 for joint filers. You must file by November 1, 2023 to be eligible for the rebate.

09/12/2025

3rd quarter Virginia 2025 individual estimated payments are due Monday, Sept. 15

If any of these situations apply to you, you may need to make quarterly estimated tax payments:

you have income, such as from investments or self-employment (including side gigs and hobby income), where state taxes are not withheld;

your employer, retirement account, or other payor is not withholding enough from your pay to cover your state taxes.

08/12/2025

Thinking about buying a car? You might be eligible for a deduction, too. Starting this year, you may deduct interest paid on a loan to purchase a qualifying vehicle.

Find out if you qualify at https://ow.ly/A71K50Wq966

04/10/2025

First quarter estimated tax payment deadline is April 15.

The Internal Revenue Service reminds self-employed individuals, retirees, investors, businesses and corporations that April 15 is the deadline for first quarter estimated tax payments for tax year 2025.

Because federal income taxes are pay-as-you-go, the law requires individuals who don’t have taxes withheld to pay taxes as their income is received or earned throughout the year. Most people meet their tax obligations by having their taxes deducted from their paychecks, pension payments, Social Security benefits or certain other government payments including unemployment compensation.

Taxpayers who are self-employed or in the gig economy are generally required to make estimated tax payments. Likewise, retirees, investors and others frequently need to make these payments because a significant portion of their income is not subject to withholding.

When estimating quarterly tax payments, taxpayers should include all forms of earned income, including part-time work, side jobs or the sale of goods or services, commonly reported on Form 1099-K.

Income such as interest, dividends, capital gains, alimony and rental income is normally not subject to withholding. By making quarterly estimated tax payments, taxpayers can avoid penalties and uphold their tax responsibilities.

03/06/2025

Partnership and S-Corporation tax returns are due Monday, 3-17-2025.

02/19/2025

Tax Time Guide 2025: Essentials needed for filing a 2024 tax return

As the 2025 tax filing season continues, the Internal Revenue Service encourages taxpayers to make essential preparations and be aware of significant changes that may affect their 2024 tax returns.

Tips for filing an accurate tax return:

The deadline for submitting Form 1040, U.S. Individual Income Tax Return, or 1040-SR, U.S. Tax Return for Seniors, is April 15, 2025. To avoid mistakes and potential processing delays, taxpayers should refrain from filing until they have received all necessary tax documents. Taxpayers should always carefully review documents for inaccuracies or missing information. They should immediately contact their employer or payer to request a correction if issues arise.

Taxpayers who have an Individual Taxpayer Identification Number or ITIN may need to renew it if it has expired. The IRS can accept a tax return with an expiring or expired ITIN, but there may be processing delays.

Updates to Additional Child Tax Credit for tax year 2024

The maximum Additional Child Tax Credit (ACTC) amount has increased to $1,700 for each qualifying child.

The IRS cannot issue refunds before mid-February 2025 for returns that properly claim the ACTC. This time frame applies to the entire refund, not just the portion associated with the ACTC.

Other changes for tax year 2024

Standard deduction amount increase. For 2024, the standard deduction amount has been increased for all filers. The amounts are:

Single or married filing separately — $14,600.
Head of household — $21,900.
Married filing jointly or qualifying surviving spouse — $29,200.
Child Tax Credit enhancements. Taxpayers eligible for the Child Tax Credit should not wait to file their 2024 tax return. If Congress changes the CTC guidelines in the future, the IRS will automatically adjust for those who have already filed. No additional action will be needed by those eligible taxpayers.

Under current law for tax year 2024, the following currently apply:

The initial amount of the CTC is $2,000 for each qualifying child. The credit amount begins to phase out where adjusted gross income (AGI) income exceeds $200,000 ($400,000 in the case of a joint return).
A child must be under age 17 at the end of 2024 to be a qualifying child.
Changes to the Earned Income Tax Credit (EITC). To claim the EITC without a qualifying child in 2024, taxpayers must be at least age 25 but under age 65 at the end of 2024. If a taxpayer is married filing a joint return, one spouse must be at least age 25 but under age 65 at the end of 2024.

Adoption Credit. The Adoption Credit and the exclusion for employer-provided adoption benefits are both $16,810 per eligible child in 2024. The amount begins to phase out if taxpayers have a modified AGI in excess of $252,150 and is completely phased out if their modified AGI is $292,150 or more. For more information, see Form 8839and Instructions for Form 8839.

Clean Vehicle Credit. The Clean Vehicle Credit is reported on Form 8936 and Schedule 3 (Form 1040), line 6f. For more information, see Form 8936, Clean Vehicle Credit.

Previously owned Clean Vehicle Credit. This credit is available for previously owned clean vehicles acquired and placed in service after 2022. For more information, see Form 8936, Clean Vehicle Credit.

IRA contribution limit increased

Beginning in 2024, the IRA contribution limit is increased to $7,000 ($8,000 for individuals aged 50 or older) from $6,500 ($7,500 for individuals aged 50 or older) the prior year.

1099-K reporting requirements have changed for tax year 2024

The reporting threshold for 2024 has changed. Third-party settlement organizations (TPSOs), also known as payment apps and online marketplaces, are now required to report transactions when the amount of the total payments for those transactions in 2024 was more than $5,000. The IRS has issued Notice 2024-85 providing transition relief for TPSOs. To understand what to do, taxpayers should become familiar with Form 1099-K.