Rapid Tax & Refund Services

HAPPY NEW YEAR

Tax planning is for everyone. Get ready today to file your federal income tax return. Planning ahead can help you file an accurate return and avoid delays that can slow your tax refund. Organized tax records make preparing a complete and accurate tax return easier. It helps you avoid errors that lead to delays that slow your refund and may also help you find overlooked deductions or credits.

Wait to file until you have ALL your tax records including:

• Forms W-2 from your employer(s)

• Forms 1099 from banks, issuing agencies and other payers including unemployment compensation, dividends, pension, annuity or retirement plan distributions

• Form 1099-K, 1099-MISC, W-2 or other income statement if you worked in the gig economy

• Form 1099-INT if you were paid interest

• Other income documents and records of digital asset transactions

• Form 1095-A, Health Insurance Marketplace Statement, to reconcile advance payments or claim Premium Tax Credits for Marketplace coverage

Tax Credits for Families - Each credit has specific eligibility criteria, including maximum income, filing status, and relationship to dependents claimed.  

Some new deductions:

• Car Loan Interest – A new deduction for interest paid on vehicle loans incurred after Dec. 31, 2024, to purchase new made-in-America vehicles for personal use. This new tax benefit applies to both taxpayers who take the standard deduction and those who itemize deductions

•  New mileage rate - IRS sets 2026 business standard mileage rate at 72.5 cents per mile, up 2.5 cents

• The Premium Tax Credit is a refundable tax credit that helps eligible individuals and families with low or moderate income with the cost of their health insurance purchased through the Health Insurance Marketplace, also known as the Exchange. OBBB made a number of changes to the Premium Tax Credit, including removing the limitations on repayment of excess advance payments of the premium tax credit for tax years beginning after Dec. 31, 2025.

• Treasury, IRS provide guidance on new tax benefits for health savings account participants under the One, Big, Beautiful Bill

• The Department of the Treasury and the Internal Revenue Service today issued a notice announcing upcoming regulations and providing guidance regarding Trump Accounts, which are a new type of individual retirement account for eligible children.

• Effective for 2025 through 2028, employees and self-employed individuals may deduct qualified tips received in occupations that are listed by the IRS as customarily and regularly receiving tips on or before December 31, 2024, and that are reported on a Form W-2, Form 1099, or other specified statement furnished to the individual or reported directly by the individual on Form 4137.

• Effective for 2025 through 2028, individuals who receive qualified overtime compensation may deduct the pay that exceeds their regular rate of pay – such as the “half” portion of “time-and-a-half” compensation -- that is required by the Fair Labor Standards Act (FLSA) and that is reported on a Form W-2, Form 1099, or other specified statement furnished to the individual. Maximum annual deduction is $12,500 ($25,000 for joint filers). Deduction phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers).

• Effective for 2025 through 2028, individuals who are age 65 and older may claim an additional deduction of $6,000. This new deduction is in addition to the current additional standard deduction for seniors under existing law. The $6,000 senior deduction is per eligible individual (i.e., $12,000 total for a married couple where both spouses qualify). Deduction phases out for taxpayers with modified adjusted gross income over $75,000 ($150,000 for joint filers).

• The Child Tax Credit is worth up to $2,200 per qualifying child. If you have little or no federal income tax liability, you may qualify for the Additional Child Tax Credit, up to $1,700 per qualifying child depending on your income. You must have earned income of at least $2,500 to be eligible for the ACTC.

• Earned Income Tax Credit (EITC): Aimed at low- to moderate-income workers, this credit can vary depending on your income and family size. Investment income limit: $11,950 or less. 

The maximum amount of credit:

No qualifying children: $649

1 qualifying child: $4,328

2 qualifying children: $7,152

3 or more qualifying children: $8,046

• Child and Dependent Care Expense Credit: This credit helps cover the costs of caring for children under age 13 or dependents who are unable to watch out for themselves, allowing you to deduct up to a significant percentage of eligible expenses.

• Education Credit (American Opportunity and Lifetime Learning): Designed for families incurring higher education expenses.

I plan to work on Mondays, Wednesdays, and Fridays from 10 am to 5 pm by appointment only. I will continue to work remotely.  The office will be open soon.  First date to file electronically is not announced yet.

The IRS reminds taxpayers that the fastest and safest way to receive a refund is to combine direct deposit with electronic filing.  Taxpayers can track their refund using Where’s My Refund? tool.

It has been a pleasure serving you and I want you to know I appreciate your business.  I will always do everything possible to merit the confidence you have shown in me.

Urmila Kamath

Registered & Trusted Tax Return Preparer

RAPID TAX & REFUND SERVICES

Email: rapidtaxkenner@gmail.com

www.rapidtaxkenner.com

Phone:504-465-9829

For text messages only: 504-315-5179

The IRS is working to protect taxpayers from falling victim to scams and schemes. Tax scams are on the rise, and scammers will try to deceive you by impersonating the IRS, providing bad tax advice and malicious web links. Always check if a message is real if you are being pressured for money, personal, financial or employee information. Stay safe and protect yourself.

Taxpayers can create or access their IRS Online Account, where they can find all their tax related information for the 2025 filing season. New users will need to have a photo ID ready to verify their identity.

For your convenience, you can drop off your documents in the lobby with contact information or send them via TaxPass.

With TaxPass you will be able to upload personal information and submit your W-2s and other supporting documents - all in a secure environment that protects your important data at www.taxpassapp.com.  Email me if you need more information.

You can sign your documents anywhere and anytime using an electronic signature on your home computer, smartphone, or other mobile devices.

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