To Our Valued Clients and Friends, January 2026
Tax season 2025 is officially here! If you’re stressing about filing your taxes correctly and on time, take a deep breath-you’re in the right place. Your personalized Client Checklist and Tax Questionnaire have been enclosed to help you gather your needed documents. If you answer “Yes” to any of the questions on the Questionnaire, you must provide the supporting documentation. Please take care when you read and answer the Questionnaire as there are a lot of changes for 2025. Return the signed Engagement Letter and completed Tax Questionnaire to our office with your tax documents. We are available via e-mail or telephone if you have any questions or concerns.
IMPORTANT! - This will be the last tax season that our office will be offering Drop-Off and Pick-Up of tax returns. This is also the last tax season our office will accept documents through USPS or private carrier services. Driscoll Tax Group, LLC is going virtual and our physical office will be closed as of June 30, 2026. All tax documents will only be accepted through our SmartVault portal.
GETTING YOUR DOCUMENTS TO OUR OFFICE and RECEIVING YOUR COMPLETED TAX RETURN
SmartVault Client Portal – Our office provides a free client portal where you can securely upload your tax documents directly to our office. Each client is provided with their own personal vault for storage, viewing and retrieval of your tax documents. SmartVault has a built-in document scanner making it simple to snap photos from your phone or tablet and converts them to clear professional PDF files. Your tax returns and documents are also stored in the portal where you can access them at any time. Contact our office for an e-mail invite to the portal.
DocuSign – SmartVault users will receive and sign their completed tax return via DocuSign. DocuSign is an electronic signature and digital management platform that allows users to sign their documents online. Upon completion of your tax return, you will receive a DocuSign e-mail where you can view and sign your tax return. The signed documents will be returned to our office electronically and your tax returns will then be e-filed. You can also print and/or download a copy of the tax returns for your records. Completed tax returns are also available to you through the SmartVault portal.
Office Drop-Off – Tax documents can be dropped off at any time during our normal business hours. You can also mail your tax documents to our office via USPS or by private carrier. (UPS, FedEx, etc.) You will be notified when your tax return is completed and a pick-up time will be scheduled for you to pick up your completed returns. You will not be able to drop off or mail your documents to our office after 4/15/26.
**For security purposes, we will no longer accept client documents via e-mail and you will need to use the SmartVault portal to securely send documents to our office.
TAX REFUNDS and TAX PAYMENTS
Effective September 30, 2025, the IRS claims they will no longer issue paper refund checks for individual taxpayers and are transitioning to electronic payments (direct deposit, prepaid debit cards or digital wallet).
Direct Deposit – Your federal and state refunds can be directly deposited into your checking or savings account. This is the fastest and most secure way to receive your refund.
Automatic Withdrawal – Your tax payments can be automatically withdrawn from your bank account on any date of your choice up until the due date of April 15, 2026.
**Provide our office with a voided check or your bank routing and account numbers via e-mail or in writing. It is your responsibility to advise our office if your bank information changes.
ONE BIG BEAUTIFUL BILL (OB3) – Following are some of the changes from OB3
Senior Deduction – For tax years 2025 through 2028 the OB3 adds a new deduction of up to $6,000 per taxpayer that is 65 and older by the end of the tax year. This deduction begins to phase out when the Modified Adjusted Gross Income exceeds $75,000 ($150,000 on a joint return). The taxpayer must file a joint tax return to claim the deduction if the taxpayer is married.
State and Local Tax (SALT) Deduction – OB3 modifies the state and local tax (SALT) itemized deduction. The maximum SALT deduction for all filing statuses (except MFS, which is 50% of the below amounts) in 2025 is $40,000. This amount begins to phase out when the Modified Adjusted Gross Income exceeds $500,000 for MFJ and $250,000 for MFS.
Tips Deduction – No Tax on Tips – For tax years 2025 through 2028 OB3 adds a deduction for individuals for qualified tips of up to $25,000 per year. Qualified tips are defined as any cash tip received by an individual in an occupation that customarily and regularly received tips on or before December 31, 2024. Cash tips include tips received from customers that are paid in cash or charged. This deduction begins to phase out when the Modified Adjusted Gross Income exceeds $150,000 ($300,000 on a joint return). The taxpayer must file a joint tax return to claim the deduction if the taxpayer is married.
Overtime Deduction – For tax years 2025 through 2028 OB3 adds a deduction for an individual’s qualified overtime compensation of up to $12,500 (or $25,000 on a joint return). The deduction begins to phase out when the MAGI exceeds $150,000 ($300,000 on a joint return). The taxpayer must file a joint tax return to claim the deduction if the taxpayer is married. If you had overtime pay in 2025, please provide a copy of your last paystub for 2025.
Car Loan Interest Deduction – For tax years 2025 through 2028 OB3 adds a new deduction for qualified passenger vehicle loan interest of up to $10,000 per tax year. Qualified passenger vehicle loan interest is paid on a loan incurred after December 31, 2024, to purchase an applicable passenger vehicle for personal use. The vehicle must be new and meet specific requirements; this deduction does not apply to used vehicles. The deduction begins to phase out when the MAGI exceeds $100,000 ($200,000 on a joint return). The vehicle identification number must be included on the tax return to claim the deduction.
TRUMP Accounts – OB3 establishes a tax-deferred savings account for children under 18 referred to as a Trump Account. A Trump account is a type of traditional IRA that has special rules. Under a pilot program, the Treasury will contribute $1,000 for U.S. citizens born after December 31, 2024 and before January 1, 2029. You can elect to open a Trump Account for your child by filing Form 4547 with your tax return or by going to TrumpAccounts.gov. If you had a child born in 2025, our office will file Form 4547 at your request. For more information or to set-up Trump accounts for all other children not born in 2025 go to the website TrumpAccounts.gov.
Clean Vehicle Credits – All clean vehicle credits ended for any clean vehicle acquired after September 30, 2025.
Residential Energy Credits – The Energy Efficient Home Improvement Credit and the Residential Clean Energy Credit expire on December 31, 2025.
FOREIGN ACCOUNTS
U.S. citizens, residents, corporations, partnerships, LLCs and trusts & estates that have a financial interest in or a signature authority over a foreign financial account must file an FBAR if the aggregate value of the foreign financial accounts exceeds $10,000 USD at any time during the calendar year. FBARs are due on April 15th, 2026. It is solely your responsibility to report foreign account information when filing your tax returns. Civil and criminal penalties may apply for failure to report.
TAX RETURN DEADLINE
The 2025 tax filing deadline for personal returns (Form 1040), without extension, is April 15th, 2026. Tax returns are processed on a “first-come, first-served” basis. Please submit your tax documents no later than March 24, 2026, to provide our office with adequate time to complete your return by the due date. If your information is received after the March 24th deadline, your return may be extended and filed after the deadline.
EXTENSIONS
We DO NOT automatically file tax extensions. You must notify our office in writing if you wish us to prepare an extension on your behalf. An extension extends the time to file; it does not extend the time to pay. If you want an extension, you should still provide all tax documents available at the time to calculate any taxes due with the extension. Failure to timely pay any tax due or any quarterly estimated tax payments may subject you to various penalties and interest. We are not responsible for any penalties or interest assessed.
BUSINESS OWNERS
When a self-employed taxpayer reduces taxable income through tax deductions there is also a reduction in earned income reported to the Social Security Administration, which could reduce current and future benefits for the taxpayer and his or her dependents. Be aware of the potential negative effects on future social security benefits for you, your spouse, and any dependents.
CONSENT FORMS
Requests to pick up completed tax returns for anyone other than themselves, will need written and signed consent. This includes anyone picking up for their adult child or parent. Consent forms are available on request.
ADDITIONAL INFORMATION
Requests for additional copies of your tax returns will incur an additional fee. Your records are available to you, free of charge, through our client portal, SmartVault. Although we retain records for three years, it is your responsibility to keep and protect your tax records.
Tax Planning is the process of arranging your finances to legally minimize your tax liability. It is a key component of financial management for both individuals and business that goes beyond completing tax returns. We are available throughout the year for tax planning and tax projection at an additional fee.
We appreciate your patronage and look forward to working with you this year.
Thank You,
Driscoll Tax Group, LLC
