The Big White Envelope
2026 UPDATE
What’s new for your 2025 tax returns?
IRS Filing Start: The IRS will begin accepting and processing 2025 tax returns on January 26, 2026. You don’t have to wait until then to send documents—the earlier, the better.
One Big Beautiful Bill (OBBBA): The new law is in effect. IRS overview here.
Additional Deduction for Seniors: For tax years 2025 through 2028, individuals age 65 and older may claim an additional $6,000 standard deduction (income limits apply).
Mortgage Insurance Premiums: Now deductible for itemizers.
RMDs (Required Minimum Distributions): Begin at age 73. If you turned 73 in 2024, your first RMD (for 2024) was due by April 1, 2025, and your 2025 RMD was due by December 31, 2025—so some taxpayers took two RMDs in 2025.
Child Tax Credit (2025): Up to $2,200 per child under 17 (income limits apply). Up to $1,700 of the credit may be refundable.
Energy credits – Most individual energy credits (e.g., Energy Efficient Home Improvement, Residential Clean Energy) are terminated early by OBBBA (last year for 2025 expenses).
1099 and W-2 Filing Deadline: January 31, 2026, for 2025 returns. Applies if you are self-employed, paid contractors, or paid $600 or more per person in 2025. We can prepare these forms—contact us ASAP!
Form 1099-K: You may receive this for third-party payments (Venmo, Zelle, PayPal). Even if you don’t get a paper form, verify your online account records.
Extensions: Filing an extension gives more time to file, not to pay. Any tax owed must be paid by April 15, 2026, or underpayment penalties apply.
FBAR (Foreign Bank Accounts): Filing required if aggregate balances exceed $10,000 at any point in 2025.
BOI (Beneficial Ownership Information) Filing: Applies to corporations, LLCs, or other entities registered with a Secretary of State. Currently, U.S. entities are not required to file due to a Federal Court order. Only certain foreign entities remain obligated.
Ready, Set, Go!
As usual, we need all mail marked “Important Tax Document Enclosed.”
Please create a Word document listing any relevant updates, such as new babies, Social Security numbers, charitable donations (we’ll determine whether they are deductible), changes of address, new homes, new bank account information, or any other pertinent details, and return it to us.
You may send scans of your W-2s, 1099s, PDFs, and other documents through our secure file exchange. Go to www.letlarrydoit.com, click “Secure File Exchange” in the upper-right corner of the home page, and follow the prompts to upload your documents securely.
Please also include a list of any significant medical expenses (note that medical expenses are deductible only to the extent they exceed 7.5% of your income).
DO NOT SEND SENSITIVE INFORMATION OR FORMS CONTAINING PERSONAL DATA VIA REGULAR EMAIL!!!
Here are some sample fees:
Normal 1040, Schedules A, B (Itemized Deductions, Interest, and Dividends) and One State tax return $695
Capital Gains (Schedule D) Starting at $50, depending on complexity
Dependent-care schedule Starting at $55, depending on complexity
Small Business (Schedule C) Starting at $125, depending on complexity
Foreign Earned Income Exclusion Starting at $150, depending on complexity
Real Estate Rental Properties (Sch E and Depreciation) $165/unit
Additional state: Starting at $75, depending on complexity
eFile FREE
Consulting, other schedules, weird things, or disproportionate time spent $50/hr.
Back by Unpopular Demand: SURGE PRICING!
There are only 31 working days between March 15 and April 15. Submitting documents after March 15 may result in additional charges to your return.
The earlier you send us your documents, the better it is for everyone—and your refund will likely arrive faster as well. So what’s keeping you from sending your documents early and avoiding the surcharge?
We appreciate your trust you have placed in us, and look forward to working with you again.
Talk to you soon.
Many Thanks,
Marcio and Larry
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