Tamara's Tax Time

18/02/2026

Great basic definitions of types of taxes

18/02/2026

Direct Deposit Changes for 2026 Could Affect How and When You Get Your Refund

You may have seen that the IRS is moving away from paper checks. If you usually receive a tax refund by paper check, you might also be experiencing some confusion about how you will receive your refund this filing season.

If you claim a refund on your 2025 tax return, new rules may affect how the IRS issues the refund if you don’t provide direct deposit information or if your direct deposit is rejected. These changes are part of the IRS effort to modernize payments to and from America’s bank accounts.

Here’s what you need to know to avoid delays and understand your options.

New Rules for Refunds Starting in 2026:

Beginning in 2026, the IRS will make changes to how refunds are handled when direct deposit information is missing or invalid:

Returns filed without direct deposit information
The IRS will still process individual income tax returns (Form 1040 series) filed without bank account information.
However, the IRS will temporarily freeze the refund until the taxpayer provides direct deposit information or requests a paper check.

Rejected direct deposits
The IRS will freeze most direct deposits that are rejected by the bank and will not automatically reissue them as paper checks.
Some reject codes are excluded, but most rejected direct deposits will require taxpayer action.

Some taxpayers are not affected:
International taxpayers;
Minors;
Prisoners;
Taxpayers with religious exceptions; and
Decedent taxpayers
What Happens If Your Refund is Frozen

If your refund is frozen, the IRS will send you a CP53E notice, which explains what you need to do next.

The notice asks you to add or update direct deposit information using your IRS Online Account .
You generally have 30 days to respond.
If you don’t take any action, the IRS will issue a paper check after six weeks.
Important: The CP53E notice is only issued once. If a second direct deposit is rejected, you will not get another opportunity to update your bank information.

How to Update Your Direct Deposit Information
Taxpayers can use their IRS Online Account to take action:

Enter new or corrected bank information for direct deposit.
If the IRS successfully verifies the new information, the IRS will issue the refund by direct deposit.
Taxpayers who do not have direct deposit information can request a paper check waiver through their online account.
Help by Phone
The CP53E notice includes a toll-free information-only phone line: 866-325-4066.

This line provides recorded explanations of the notice and next steps.
It does not transfer callers to a customer service representative or let you enter deposit information – it is for informational purposes only.
If you do not have a bank account or an online account, you will need to phone the main IRS phone number (800-829-1040) and request that the Customer Service Representative change your refund to a paper check.

Avoid Delays to Your Refund
To help ensure timely delivery of your refund in 2026:

Double-check your bank routing and account numbers before filing.
Use direct deposit whenever possible.
Set up or access your IRS Online Account so you can respond quickly if action is needed.
For general information about these changes, visit IRS.gov/modernpayments.

Send a message to learn more

19/01/2026

Congress enacted a rule to change the 1099-K threshold for your 2025 taxes, meaning you should only receive a Form 1099-K if you receive more than $20,000 in gross payments on third-party networks or payment apps and you also conduct more than 200 transactions on a single platform within the tax year.

Send a message to learn more

04/01/2026

New deduction:
Effective for 2025 through 2028, individuals who are age 65 and older may claim an additional deduction of $6,000. This new deduction is in addition to the current additional standard deduction for seniors under existing law.

The $6,000 senior deduction is per eligible individual (or $12,000 total for a married couple where both spouses qualify).

Deduction phases out for taxpayers with modified adjusted gross income over $75,000 ($150,000 for joint filers).

Qualifying taxpayers: The taxpayer must attain age 65 on or before the last day of the taxable year.

Taxpayer eligibility: Deduction is available for both itemizing and non-itemizing taxpayers.

Taxpayers must:

Include the Social Security number of the qualifying individual(s) on the return
File jointly, if married, to claim the deduction

30/12/2025

🚨IMPORTANT IRS PHONE NUMBERS🚨
- [ ] IRS 800-829-1040(General IRS phone number)
- [ ] To speak to a live agent call 1-866-682-7451 ext 569
- [ ] ID/PIN 800-908-4490 (Retrieve your yearly PIN)
- [ ] Transcript 800-908-9946 (Summary of your return)
- [ ] Employee Retention Credit (877) 777-4778
- [ ] Tax Advocate 877-777-4778 (Someone to help you with any tax related problems)
- [ ] Offset Line 800-304-3107 (Find out if you owe)
- [ ] Holds Department 866-897-3315
- [ ] Refund 800-829-0582
- [ ] Amended Return Line 866-464-2050
- [ ] Tax Practitioner Line: (866) 860-4259

28/12/2025

New deduction:

Effective for 2025 through 2028, individuals may deduct interest paid on a loan used to purchase a qualified vehicle, provided the vehicle is purchased for personal use and meets other eligibility criteria. (Lease payments do not qualify.)

Maximum annual deduction is $10,000.

Deduction phases out for taxpayers with modified adjusted gross income over $100,000 ($200,000 for joint filers).

Qualified interest: To qualify for the deduction, the interest must be paid on a loan that is:

Originated after December 31, 2024

Used to purchase a vehicle originally used by the taxpayer (used vehicles do not qualify)

For a personal use vehicle (not for business or commercial use)

Secured by a lien on the vehicle

If a qualifying vehicle loan is later refinanced, interest paid on the refinanced amount is generally eligible for the deduction.

Qualified vehicle: A qualified vehicle is a car, minivan, van, SUV, pick-up truck or motorcycle, with a gross vehicle weight rating of less than 14,000 pounds, and that has undergone final assembly in the United States.

To determine if a vehicle had final assembly in the U.S., check one of these:

The information label attached to the vehicle on a dealer's premises

The vehicle identification number (VIN)

The National Highway Traffic Safety Administration (NHTSA) VIN Decoder

Taxpayer eligibility: Deduction is available for both itemizing and non-itemizing taxpayers. The taxpayer must include the vehicle identification number (VIN) of the vehicle on the tax return for any year when the deduction is claimed.

Reporting: Lenders or other recipients of qualified interest must file information returns with the IRS and furnish statements to taxpayers showing the total amount of interest received during the taxable year.

Guidance: The IRS will provide transition relief for tax year 2025 for interest recipients subject to the new reporting requirements.

20/12/2025

New deduction:

Effective for 2025 through 2028, individuals who receive qualified overtime compensation may deduct the pay that exceeds their regular rate of pay (such as the “half” portion of “time-and-a-half” compensation) that is required by the Fair Labor Standards Act (FLSA) and reported on a Form W-2, Form 1099, or other specified statement furnished to the individual.

Maximum annual deduction is $12,500 ($25,000 for joint filers).

Deduction phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers).

Taxpayer eligibility: Deduction is available for both itemizing and non-itemizing taxpayers.

Taxpayers must:

Include their Social Security number on the return and
File jointly if married, to claim the deduction.

Reporting: Employers and other payors are required to file information returns with the IRS (or SSA) and furnish statements to taxpayers showing the total amount of qualified overtime compensation paid during the year.

Guidance: The IRS will provide transition relief for tax year 2025 for taxpayers claiming the deduction and for employers and other payors subject to the new reporting requirements.

18/12/2025

New deduction:
Effective for 2025 through 2028, employees and self-employed individuals may deduct qualified tips received in occupations listed by the IRS as customarily and regularly receiving tips on or before December 31, 2024, and that are reported on a Form W-2, Form 1099, or other specified statement furnished to the individual or reported directly by the individual on Form 4137.

“Qualified tips” are voluntary cash or charged tips received from customers or through tip sharing

Maximum annual deduction is $25,000; for self-employed, deduction may not exceed individual’s net income (without regard to this deduction) from the trade or business in which the tips were earned.

Deduction phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers)

Taxpayer eligibility: Deduction is available for both itemizing and non-itemizing taxpayers. Self-employed individuals in a Specified Service Trade or Business (SSTB) under section 199A are not eligible. Employees whose employer is in an SSTB also are not eligible. Taxpayers must:

Include their Social Security number on the return

File jointly if married, to claim the deduction

Reporting: Employers and other payors must file information returns with the IRS (or SSA) and furnish statements to taxpayers showing certain cash tips received and the occupation of the tip recipient.

15/12/2025

Access or login to an existing IRS online account

An IRS online account allows taxpayers to access personal tax information, including recently filed returns, securely. Through this tool, taxpayers can:

View tax records, including adjusted gross income and transcripts

Make, schedule and view payments

Get or view their Identity Protection PIN

Authorize a tax professional to access their tax records digitally

Access available Forms W-2 and certain 1099s

View and edit communication preferences from the IRS and alternative media such as Braille, large print and more

Receive and view over 200 IRS digital notices.

Set up or change payment plans and check their balance

Gather and organize tax records

Having organized tax records helps taxpayers file complete and accurate tax returns and avoid errors that could delay refunds. This may also help the taxpayer identify deductions or credits that may have been overlooked.

Most income is taxable, including unemployment compensation, refund interest and income from the gig economy and digital assets. Taxpayers should watch for and gather essential forms, such as Forms W-2, Wage and Tax Statement and other income documents, when they become available in 2026.

11/12/2025

Expansion of HSA Eligibility Under the OBBB

The OBBB expands access to HSAs by making the following changes:

Telehealth and Remote Care Services: The OBBB made permanent the ability to receive telehealth and other remote care services before meeting the high-deductible health plan (HDHP) deductible while remaining eligible to contribute to an HSA, effective for plan years beginning on or after Jan. 1, 2025.

Bronze and Catastrophic Plans Treated as HDHPs: As of Jan. 1, 2026, bronze and catastrophic plans available through an Exchange are considered HSA-compatible, regardless of whether the plans satisfy the general definition of an HDHP. This expands the ability of people enrolled in these plans to contribute to HSAs, which they generally have not been able to do in the past. Notice 2026-05 clarifies that bronze and catastrophic plans do not have to be purchased through an Exchange to qualify for the new relief.

Direct Primary Care Service Arrangements: Beginning Jan. 1, 2026, an otherwise eligible individual enrolled in certain direct primary care (DPC) service arrangements may contribute to an HSA. In addition, they may use their HSA funds tax-free to pay periodic DPC fees.

08/12/2025

Some Key Provisions of the OBBBA:

1. Permanent Continuation of 2017 Tax Cuts
The OBBBA codifies the individual and corporate tax rate reductions first introduced in the 2017 Tax Cuts and Jobs Act (TCJA), making these lower rates a lasting part of the code.

2. Expanded SALT Deduction Limit
The deduction cap for state and local taxes (SALT) will increase to $40,000 for households earning less than $500,000 annually. This change will remain in effect through 2029.

3. Increased Child Tax Credit
Effective in 2025, the child tax credit rises to $2,200 per qualifying child. A maximum of $1,400 is refundable, and the total credit will be adjusted for inflation in future years.

4. New Tax Break for Seniors
A new $6,000 deduction is available for taxpayers aged 65 and older. This benefit begins to phase out for single filers earning above $75,000 and for joint filers above $150,000.

5. Reinstatement of R&E Expensing
The legislation restores immediate expensing for U.S.-based research and experimental costs, undoing the TCJA mandate to amortize these expenditures over time.

07/12/2025

1. What counts as a bonus for tax purposes?
According to the IRS, a bonus is any payment made from an employer to an employee in addition to regular wages.

It can be cash or non-cash. A holiday bonus is taxable, even if it is presented as a gift.

But if you receive a small non-cash holiday gift from your employer, such as a ham or popcorn tin, you don’t have to claim it as a bonus. The IRS specifically excludes such “de minimis fringe benefits” from taxation.

The IRS considers bonuses to be supplemental income and taxes them at a flat withholding rate of 22% (a higher rate applies to bonuses over $1 million).

Your employer can tax your bonus in one of two ways — the percentage method or the aggregate method.