As we approach another tax season, many people focus solely on their upcoming return — but this year, it’s just as important to look ahead. Several tax law changes are set to roll out in 2026, and preparing now can make a noticeable difference in your filing experience and financial planning. Below is a simple, clear guide to help you get organized for your 2025 tax return and stay ahead of what’s changing the following year.
Preparing to File Your 2025 Tax Return
1. Gather documentation for tip income and overtime exemptions
If you qualify for the 2025 tax exclusions on tips or overtime, keep detailed records to support the amounts you plan to claim. Make sure your occupation is on the approved list for tip exclusions, and confirm your expected overtime pay. Employers aren’t required to report these exclusions on W-2s or 1099s for 2025, but they should give you written confirmation of the dollar amounts. Compare their numbers with your own logs before filing to prevent mismatches.
2. Be on the lookout for the new Form 1099-DA
If you own or trade cryptocurrency or other digital assets, you may receive the new Form 1099-DA for the first time. Beginning with the 2025 tax year, brokers and exchanges must report specific digital asset transactions. Track your cost basis, wallet activity, and sale dates so your reporting aligns with what the IRS receives.
3. Understand when 1099-Ks may still appear
Payment processors like PayPal or Venmo should only issue a 1099-K if you have 200+ transactions totaling more than $20,000. However, because the rules in this area continue to shift, you might still receive one even if you don’t meet the threshold. If you do, keep it with your tax records so it can be handled correctly — don’t toss it aside.
4. Review IRA and HSA contribution deadlines
If you contribute to an IRA or HSA, remember that 2025 contributions are allowed until April 15, 2026, or until you file your return, whichever comes first. Knowing this gives you extra time to maximize your savings benefits.
Tax rules can feel overwhelming, especially as new changes take effect. If you have questions about how these updates may impact your personal or business tax situation—or if you’d like help preparing for the upcoming filing season—the team at NSO & Company is here to help. We’re happy to walk through your options and provide guidance tailored to your goals. Call our office at (317) 588-3131 to speak with a member of our team and get the clarity you need to move forward with confidence.
