As Chuck Neely, CEO of Neely’s Accounting in Roanoke says, “It’s Your Money,” and 10 News is working for you to help you get it back. Neely is once again partnering with WSLS 10 tip to provide educational tax tips all tax season.
What to know before you file:
Tax season is underway and most taxpayers have until April 15 to file returns with the IRS. Neely says its important to get documents organized early. He says to sign up for direct deposit and keep copies of prior returns to cut out last-minute stress.
Gather key documents early Before filing:
Taxpayers should assemble Social Security numbers, W-2s, 1099s, records of savings and investments, mortgage interest statements, property tax records, charitable donation receipts and documentation for any education or medical expenses they plan to claim. Keeping copies of tax returns for five to seven years is recommended in case of audit.
Know what’s different this year:
Several changes in tax law and program offerings could affect refunds and deductions for 2025 returns filed in 2026. Some of the items to watch include changes to the standard deduction, the state and local tax (SALT) cap, new industry-specific deductions and how the IRS is handling electronic filing tools.
Standard deduction changes:
The standard deduction increased for 2025 returns: $15,750 for single taxpayers, $31,500 for married couples filing jointly and $23,625 for heads of household. Taxpayers should compare the revised standard deduction to possible itemized deductions to determine which method yields a bigger tax benefit.
SALT deduction and Working Families Tax Cut:
One major change reported this year is an increase in the cap on state and local tax deductions from $10,000 to $40,000. That change, described in coverage as the Working Families Tax Cut enacted in July, may make itemizing worthwhile for taxpayers in high-tax states.
Child tax credit and refundability:
The child tax credit amounts and refundability rules also differ from prior years. Reports note a full credit amount per qualifying child and a smaller refundable portion called the Additional Child Tax Credit. Eligibility phases out at higher incomes, and parents should check which portion is refundable before filing.
New deductions and industry limits:
Taxpayers may be able to claim new deductions introduced in recent tax and spending legislation. This includes limited deductions for qualified tips, certain car loan interest, overtime-related pay and deductions tied to specific industries where tipping is common. To claim the tip deduction, a taxpayer reportedly must use a new Schedule I-A form.
Deductions for qualified tips are described as capped at $2,500 annually and subject to phaseouts at higher modified adjusted gross income levels.
Free filing options and tax help:
The IRS Free File program and other free resources are available for many taxpayers earning up to a specified income limit.
The IRS funds Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs. VITA typically serves people who meet income thresholds, and TCE is geared to taxpayers 60 and older.
Avoid paper refund checks:
The IRS has been phasing out paper refund checks to speed delivery and reduce fraud. Taxpayers expecting refunds should sign up for direct deposit and verify bank-routing information before filing.
Common mistakes and scams to avoid:
Common filing mistakes include mismatched names or Social Security numbers, missing or misreported W-2s and forgetting to include income from second jobs or gig work. Tax season also draws scams via phone, text, email and social media. The IRS does not initiate taxpayer contact by those methods to demand payment, and taxpayers should be wary of preparers promising unusually large refunds.
If uncertain about a preparer’s work, taxpayers should request a copy of the return and ask questions about each entry.
Where to get help:
Taxpayers can find licensed preparers, certified public accountants and IRS-certified volunteers via directories on IRS.gov . Those who believe their identity is at risk can request an IRS identity protection PIN.