BREAKING NEWS:
January 11, 2026
Don’t try doing your taxes on your own! Get in early to get your taxes prepared! Refunds are through the roof! But be careful, they won’t be next year without some adjustments on your part. This year’s tax law changes are highly beneficial to our client base.
We are seeing a massive increase in refunds this year due to “No Tax on Overtime,” an increase in SALT, and No Tax on Tips. In addition, the New Car Loan interest deduction is helping anyone who bought a new car in 2025 that was assembled in the US.
WARNING: The IRS changed the withholding tax laws, and they are putting 6% more in your take-home pay week to week.This will drastically reduce your refund next year, similar to 2018, when it was 4%. Quick math: if you make $125,000, the government will give you $7,500 extra in your paycheck during the year, which will reduce your refund next year by 6%, or in the example above, $7,500.
No Tax on Overtime
This is a little misleading. It will be a deduction on your tax return and will be capped at $12,500 for single taxpayers and $25,000 for taxpayers filing Married Filing Jointly. However, it is just the amount you are being paid OVER your regular base pay. This gets very complicated and will be an area the IRS will monitor closely, so make sure you bring it to a Tax Preparer who knows how to calculate it correctly, as it only applies to the premium portion of the overtime rate. This is an above-the-linededuction and reduces your Adjusted Gross Income. It is essential to the overall calculation of your tax return.
For those of you who work for the city please go on your payroll portal (ESS) and print up a Mortgage verification letter This will give us all the information needed for this deduction, and must be given to us to prepare your taxes.
No Tax on Tips
Like the overtime deduction, this will also be a subtraction from your gross income. It is up to $25,000 and is subject to phase-outs as well.
Increase in SALT deduction
Most of our clients were limited in their SALT (State and Local Tax) deduction last year because it was capped at $10,000. This year, you can claim up to $40,000 in SALT deduction, which, for many of our clients, will increase their deduction by $30,000. If you are in the $24% bracket, for example, it could be an extra $7,200 in your pocket (.24 x $30,000 = $7,200)
Increase in Deduction for Seniors
For those over 65, there is an additional $6,000 deduction, subject to phase-out amounts.
We are currently in pre-tax season hours and begin regular tax season hours on January 26. Please visit our website for current hours.
