2025 Tax Season Updates
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Here we go! 😊 Hard to believe it's 2026, but it seems to be off and running, so it's time to wrap up 2025's taxes!  Please read all the information below in detail, things are continually in flux in the tax world and this is our best way to communicate these changes:

              

1. Deadlines:

   1. Individual Returns - March 15th for April 15th filing, and August 15th for October 15th filing with extension, anything received after that will be subject to additional fees ($50 between 3/15 and 8/15, and then $100 for documents received after 8/15)

   2. Business Returns – February 15th for March 15th filing, and July 15th for September 15th filing with extension, anything received after that will be subject to additional fees ($50 between 2/15 and 7/15, and then $100 for documents received after 7/15)

   3. If you need a filing extension, please request via email at least 10 days in advance (4/5 for individuals or 3/5 for businesses).  Filing an extension only delays your filing deadline, not your payment deadline.  Please let us know with at least 2 weeks notice if you need a payment estimate.

2. Documents:

   1. Because of email security issues, we can no longer email our organizers, but you can find them at Tax Document Downloads or https://www.cpamichele.com/downloads

   2. Due to IRS and security requirements (or a lack of consistency with our post office), we can no longer accept documents via email, links, or mail.  All documents must be uploaded to our SmartVault Portal (https://knightaccounting.smartvault.com/).  If you have issues, just let us know.

   3. When uploading documents, please provide PDF’s, Excel or Word Documents.   We cannot use .numbers files, and JPG’s are often difficult to read.  If you don’t have a scanner, ask a friend / banker / financial planner / insurance agent or UPS/FedEx store for help.

   4. Please upload your documents at one time, not piecemeal, to the TY25 Client Source Docs folder.  Always send an email to notify us once you have uploaded all of your documents (or the bulk of them, and then let us know via email if you are waiting on a K-1 or other late document).

   5. Individual Organizers are required for all returns.  Please read thoroughly…if we ask for specific info (i.e. driver’s license #/issue/expiration date) it’s because we need it.

   6. Failure to include all documents will result in reprinting fees.  The most common forgotten documents are the 1095-A from Marketplace Health Insurance and an Identity Protection PIN provided by the IRS.

   7. We recommend you set up an IRS online account at https://www.irs.gov/payments/online-account-for-individuals.  This helps you double check that you have tracked all your income sources, identify potential fraud, and is the best place to track payments, refunds, and IRS correspondence.

   8. Please do not send receipts, 5498 Forms, and 1095 B/C Forms.  You should keep all statements and receipts for your records, but we do not need them.

3. New Developments:

   1. You may receive a new Form 1099K this year if you had significant electronic payment activity, such as Venmo or PayPal.  We need this document to help report your personal and business receipts accurately.

   2. If you plan on making energy efficient purchases in 2025, be sure to find a QM (qualified manufacturer) and get a copy of the PIN at the time of purchase.  See details at https://www.irs.gov/newsroom/treasury-and-irs-issue-guidance-for-the-energy-efficient-home-improvement-credit.

   3. Due to backlogs at the local, state, and federal levels, audit and compliance letters are being sent far more often than ever before.  Some are accurate, some are erroneous, but all require our attention.  And, with staffing backlogs at the various agencies, it can take us 3 – 4 months to get through to agents to even discuss the issues, which has greatly increased our workload and decreased our efficiency.  If you are the (un)lucky recipient of a letter, we ask that you send us a full copy of all pages (preferably scanned as a PDF, not just photos) within 5 days of you receiving the letter so that we may start the response process as quickly as possible.

   4. 2025 OBBBA Tax Changes: details can be found at https://taxfoundation.org/research/all/federal/one-big-beautiful-bill-act-tax-changes/ and our 2025 organizers reflect the new information requested at the bottom of page 3.

   5. Unlike in prior years where all information was reported on your W-2, this year overtime pay and tips may NOT appear on your W-2's.  The only way to take advantage of these deductions will be to obtain copies of your final paystubs from any jobs that you worked.   If you can't access your paystubs via an electronic portal, ask your payroll/HR department for copies.

 

1. Several local banks are changing ownership in 2026 and this means your statements, etc may no longer be available.   We cannot share this recommendation with enough passion: download copies of your bank statements, investment accounts, and credit card statements, make or update your list of account usernames/passwords/security codes, and make sure your legal paperwork (a will or trust, medical powers of attorney, etc) are fully updated and in place.

While our goal is always to support you in every possible way, we are not perfect and we always appreciate your patience, understanding, and KINDNESS!  Communication is always key, so if you are facing delays or challenges on your end, please just keep us posted and we’ll do everything we can to accommodate!  If you no longer need our services, please just let us know and we’ll remove you from our mailing list.

 

Sincerely,
Michele, Lyndsey, & Jimmy

Knight Accounting & Technology – “like” us on  (Knight Accounting & Technology), or visit www.cpamichele.com for updates throughout the year

 

 

 

 

Recapping my previous notes about the 2025 Tax Year:

 

The newest tax changes (nicknamed OBBBA) went into effect mid-year.  Details can be found here (https://taxfoundation.org/research/all/federal/one-big-beautiful-bill-act-tax-changes/), but I'll recap the primary changes below.  Most are subject to income limitations, so don't count on any deductions without digging into the details, but just know that we'll be doing our best, as always, to maximize your benefits when the time comes!

 

A) Most Electric Vehicle tax credits expired 9/30/25 federally, but may still be available in Colorado

B) Solar and residential home improvements must be completed (purchase, installed and placed in service) by 12/31/25, and to qualify and you must have a Manufacturer's PIN to qualify

C) During 2025 - 2028, taxpayers 65 years and older will get an additional $6,000 deduction from taxable income

D) Child tax credits have increased by $200 from $2,000 -> $2,200 per child

E) State & Local Tax Deductions increased from $10,000 -> $40,000

F) Personal Auto Loan Interest Deduction (must be manufactured in US, generally VIN's start with 1, 4, 5, 7F -> 7Z, and 70)

 

Actions You Should Take:

 

A) Set up your online account at https://www.irs.gov/individuals/get-transcript.   This is becoming increasingly more important, as more mistakes on the back end and more forms being delivered electronically instead of by mail, are causing havoc for taxpayers.  By checking your transcripts at tax time, you can make sure you haven't missed any income sources or documents that would trigger a mismatch audit.

 

B) Unlike in prior years where all information was reported on your W-2, this year overtime pay and tips may NOT appear on your W-2's.  The only way to take advantage of these deductions will be to obtain copies of your final paystubs from any jobs that you worked.   If you can't access your paystubs via an electronic portal, asking your payroll/HR department for help now will help you beat the January rush!

 

D) Consider this a call to action: I truly believe in enjoying the moment, but also planning for the future, whether for myself or for the benefit of my family.  If you can squeeze in a few hours of time between now and year end, revisit the basics: download copies of your bank statements, investment accounts, and credit card statements (in the event of bank acquisitions, changes to the FDIC, or other disruptions which cause you to lose access), make or update your list of account usernames/passwords/security codes, and make sure your legal paperwork (a will or trust, medical powers of attorney, etc) are fully updated and in place.

 

As a side note, my baby boy Jacob is graduating high school this year, and I have some time set aside from 12/20-1/5 to spend touring colleges and just enjoying his company before he takes off, so please send any urgent year end questions before the holidays so we can get you responses, otherwise they will wait until our return.

 

On behalf of myself, Lyndsey, and Jimmy, we wish everyone a happy & healthy holiday season, filled with peace, love and those who matter most!

- Michele