Happy New Year! We hope this letter finds you healthy and ready for a great 2026.
We have been busy soaking in the One Big Beautiful Bill (OBBB) that was passed in July 2025. While there were many things that were extended or kept the same as the last 8 years, there were a few added benefits for certain taxpayers. This letter goes over a few things that you can expect this year & the more you prepare, the faster the turn around time will be.
Here are some Key tax updates worth highlighting:
Itemized Deductions: the new law temporarily increased the state and local taxes (SALT) cap to $40,000.
This means that MANY more of you will be itemizing this year, which is a very good thing as it will decrease your taxable income & thus decrease your tax liability. Just as an FYI, if you have not been itemizing and now will be, we do charge by the form for a tax return & you can expect the price for just this form to be $75. This will be on top of any overall increases that we do for the tax year.Tips: There is a new deduction for tips. There is an income phase out. This deduction is ONLY for Tips that you claimed as income either within your W2 or if you received a 1099-NEC. But this is a good thing overall. For just 2025 you will need to provide documentation of the amount of tips you received as your employer does NOT have to provide that on your W2 for 2025.
Overtime (OT): There is a new deduction for overtime. There is an income phase out. This deduction is ONLY for OT that you claimed as income within your W2 income. Again, this is a good thing overall. For just 2025 you will need to provide documentation of the amount of OT you earned as your employer does NOT have to provide that on your W2 for 2025.
As in the past, here are a few things to remember:
1. Providing Your Tax Documents:
The following options are available:
Office drop-off
Documents may be dropped off at our office. Since all documents are scanned into our system, removing staples and paperclips and placing items together in a folder (such as a manila folder) is appreciated and helps speed processing. Our tax season hours are Monday-Friday 8-6 and Saturdays 9-Noon.Secure client portal
Our secure client portal allows you to upload documents directly to your file, communicate with your preparer, e-sign your return, and access copies of your tax return and source documents securely year-round. If you do not yet have a portal login, please email [email protected] to have one set up.Email
While email is available if needed, documents sent through the secure portal is preferred, as they are easier to track, process, and help ensure nothing is missed.
Please remember to complete our annual client form for each tax return you need prepared and submit it with your tax documents using the same method. This form helps us efficiently ensure we have the most up-to-date information for accurate preparation, outlines our policies and procedures, and serves as a reminder of commonly overlooked or required items.
For your convenience; click the link below to download the intake forms that apply to your situation:
2025 Individual Tax Preparation Intake Form
2025 Business Tax Preparation Intake Form
2. OTHER REMINDERS:
Deadlines
It is our company policy that any client who drops off, emails, delivers, or uploads their tax documents after March 28, 2026 will automatically have an extension filed on their tax return—no questions asked. We will do our best to complete the tax return before the April tax deadline, but no guarantees that it will be completed.Extensions
As a reminder, an extension only provides extra time to file your tax return—it does NOT extend the deadline for paying any amount you may owe. If you believe you will owe money, you should either make a payment online or mail it in with an extension voucher we can provide. If you are expecting a refund, it’s not a big deal—the IRS allows taxpayers to file after the deadline in that case.As of September 30, 2025, the IRS no longer allows paper checks for payments or refunds except in very rare circumstances. However, they have stated that checks may still be mailed temporarily until further notice as they transition. Keep in mind this policy could change at any time, so we recommend planning accordingly.
Communications
This year, additional internal staff will be assisting with certain parts of the tax preparation process. As a result, you may be contacted by someone other than your primary accountant regarding questions or to let you know when your return is completed and ready to be signed.E-filing
Please note that the IRS will start accepting e-filling of tax returns on January 26th.
Thanks again for your past patronage and the trust you have placed in us to prepare your tax return. We look forward to hearing from you again this year!
Sincerely,
Busek Olson & Associates | Taxman | West Fargo Tax & Accounting