1040 Tax Form With Past Due Stamp for 2026 Filing Season

2025-2026 Tax Season: New Deductions and Required Forms for Filing

The passage of the federal One Big Beautiful Bill in 2025 dramatically affects business and personal income taxes, as well as payroll W-2 reporting for 2025. While many deductions and credits remain the same, the following are notable changes that may impact those with the following situations:

Tips and overtime income - If you have W2 tip income or overtime income, there should be data in W2 Box 14 or a supplemental notice from the employer regarding qualifying amounts related to these 2 specific items:

Tips - deduction of up to $25,000 per taxpayer with phaseout for Modified Adjusted Gross Income (MAGI) over $150,000 (over $300,000 for Married Filing Jointly).

Working overtime - deduction of up to $12,500 per taxpayer with phaseout for MAGI over $150,000 (over $300,000 for Married Filing Jointly).

Social Security recipients - There is an additional $6,000 per-person senior Social Security deduction for 2025 – 2028 for those age 65 and older, with a phaseout for MAGI over $75,000 (over $150,000 for Married Filing Jointly). For those receiving Social Security, this is a favorable change that may help reduce income taxes.

Child Tax Credit - The child tax credit increases to $ 2,200 for dependents under age 17. Over 17 remains at $500.

529 plans - 529 plan tax considerations have been modified; reach out to a financial or tax professional for clarification.

State and Local Tax (SALT) - The Schedule A SALT cap deduction increases to $40K – the combined property tax and state income taxes that can apply toward itemized deductions. There may be other miscellaneous deductions includable depending on your situation.

New vehicle deduction – A qualifying new vehicle deduction of $10,000 for interest paid on a loan for a new vehicle assembled in the United States and purchased in 2025 may apply. The bill of sale will be required, along with documentation of the interest paid.

Cryptocurrency/digital assets – Investors must report selling or using digital assets to pay for a transaction. These asset sales have always been taxable; however, include the form for filing 2025 taxes.

Home Energy Efficiency - Energy efficiency home improvement credits end in 2025. If a new furnace, A/C, boiler, heat pump, water heater, woodstove, windows, doors, insulation, solar, or battery storage was installed, provide a copy of the invoice for filing purposes.

Required forms for filing

Below are some of the documents that may be needed to file 2025 income taxes, depending on one's situation:

  • W-2 for wages
  • 1099-Int for interest
  • 1099-DIV for dividends
  • 1099-B Brokerage
  • SSA-1099 Social Security
  • 1099-NEC for income
  • 1099-Misc for income
  • 1099-K for income
  • 1099-R for retirement income
  • 1099-G for refunds & unemployment
  • 1099-Int for mortgages
  • 1098-T for tuition
  • 1099-SA for HSAs
  • K-1 forms from investments in S corporations or partnerships
  • Form 5498 for IRA values
  • Form 1098-VLI for new car loan interest
  • For 1099-DA for digital assets
  • IRA and Roth IRA contributions for 2025
  • Childcare costs, and the name, address, amount, and Tax ID # of the recipient
  • Charitable donations: total amounts and recipients
  • Property tax paid on primary residence
  • Estimated tax payments and dates
  • Any letters received from the IRS or state tax authorities

The IRS officially began accepting 2026 tax season returns on Monday, January 26, 2026, with the filing deadline of Wednesday, April 15, 2026. If you have any questions regarding investments, securities, purchases, or deductions specific to your situation, contact a financial or tax professional for further information before filing.

Need Help With Retirement Tax Planning?

Tax season can be especially complex for retirees managing RMDs, Social Security taxation, and retirement account withdrawals. While we don't prepare tax returns, we help our clients develop tax-efficient retirement income strategies.

**Schedule a complimentary financial planning consultation:** (480) 630-6177 Serving retirees in Chandler, Gilbert, Maricopa, and Gold Canyon.

Contact Us Today

A financial advisor with a fiduciary duty provides this commentary and serves individuals and families across Arizona.

Past performance is not indicative of future results. The material above has been provided for informational purposes only and is not intended as legal or investment advice or a recommendation of any particular security or strategy. The investment strategy and themes discussed herein may be unsuitable for investors depending on their specific investment objectives and financial situation. Information obtained from third-party sources is believed to be reliable, though its accuracy is not guaranteed, and J. Martin Wealth Management makes no representation or warranty as to the accuracy or completeness of the information, which should not be used as the basis of any investment decision. Information contained on third-party websites that J. Martin Wealth Management may link to are not reviewed in their entirety for accuracy, and J. Martin Wealth Management assumes no liability for the information contained on these websites. Opinions expressed in this commentary reflect subjective judgments of the author based on conditions at the time of writing and are subject to change without notice. No part of this material may be reproduced in any form or referred to in any other publication without express written permission from J. Martin Wealth Management. For more information about J. Martin Wealth Management, including our Form ADV brochures, please visit https://adviserinfo.sec.gov."

Wealth Watch Advisors, Inc. is an SEC-registered investment advisory firm. Registration does not imply a specific level of skill or training. The information above is for educational purposes only and is not personalized advice. All investments involve risk, including possible loss of principal. Before engaging our services, please review our Form ADV Part 2A and Part 3 (CRS) at www.wealthwatchadvisors.com.

The information I've included here is for illustrative and informational purposes only and should not be considered legal, tax, or investment advice. Investment advisory services are offered through Wealth Watch Advisors, Inc., an SEC-registered investment adviser. The firm transacts business only in states where it is properly registered or is excluded or exempted from registration requirements. SEC registration is not an endorsement of the firm by the Commission and does not imply that the adviser has attained a specific level of skill or ability. All investment strategies carry the potential for profit or loss. Investing involves risk, and no strategy can guarantee success or eliminate the possibility of loss. Neither Wealth Watch Advisors nor J. Martin Wealth Management, LLC, is endorsed by the Social Security Administration or any other governmental organization.