Here we are in the second month of the year and ready for tax season. The Internal Revenue Service (IRS) started accepting and processing tax returns electronically on Monday, January 26th, 2026.
It is important for taxpayers with health insurance through the marketplace. If you didn’t get your Form 1095-A by mail, you need to log in to their accounts on healthcare.gov. Then you will be able to download and print your Form 1095-A from check messages.
This year is something new: the IRS strongly recommends that taxpayers establish a bank account to receive their tax refunds via direct deposit, because the IRS is phasing out paper tax refund checks due to the executive order, Modernizing Payments To and From America’s Bank Account.
Next, ask your tax preparer about enrollment in a Trump account for your child born in 2025. It’s a pilot program contribution of $1,000 for children born between January 1, 2025 and December 31, 2028 who are U.S. citizens with a valid Social Security number. The federal government will deposit into a special IRA account. During the growth period, no distributions will be allowed from a Trump account before January 1 of the calendar year in which the account beneficiary attains age 18. Perhaps distributions from a Trump account are subject to the rules that apply to distributions from a traditional IRA, including that a distribution may be subject to 10% additional tax on early distributions if an exception does not apply with respect to the account beneficiary, such as for distributions for qualified higher education expenses, first home purchases or distributions made after age 59½. Parents, guardians and any other authorized person must elect to create the individual retirement account for their children at the time of filing the tax return for 2025.
It is crucial for taxpayers claiming the Child Tax Credit and Other Dependents to file their tax returns before the middle of February, when the IRS starts processing those returns. Filing your tax return before the middle of February will prevent someone else from claiming your dependents on their tax returns before you.
Last, for interest paid on new vehicle loans during 2025 through 2028, there are some restrictions on the allowable deduction, which is up to $10,000 annually for personal use. It is subject to an income limit based on Modified Adjusted Gross Income: $100,000 for singles and $200,000 for married filing jointly. The requirements are as follows: new cars, SUVs, minivans, pickup trucks or motorcycles weighing less than 14,000 lbs. and must have final assembly in the United States.
More good business tax stuff next month. Remember, this is a very brief overview. It is your responsibility to discuss any tax and financial changes with your professional advisor for assistance in evaluating your situation. For details and specific assistance in applying the general information in this article, call us at your earliest convenience or contact your tax advisor.
Provided by Pedro L. Baldeon, E.A., 321-632-5726, a member of the National Society of Tax Professionals.
