Mileage rates for travel are now set for 2026. The standard business mileage rate increases by 2.5 cents to 72.5 cents per mile. The medical and moving mileage rates go down 1/2 cent to 20.5 cents per mile. Charitable mileage rates remain unchanged at 14 cents per mile.
How many miles did you drive for your business in 2025?
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TAX PREPARATION TIPS:
For the 2026 tax season (filing 2025 taxes), the IRS advises starting early by organizing W-2s, 1099s (including 1099-K/DA for digital assets/gig work), using your IRS Online Account, reviewing new law changes (like potential senior deductions from the “One, Big, Beautiful Bill“), e-filing with Direct Deposit, and watching for scams; key actions include maximizing HSA/529 contributions, adjusting withholding, and accurately reporting all income, especially digital assets.
Before Filing: Preparation & Organization
Get Organized: Gather W-2s, 1099s (interest, dividends, digital assets, gig work), and other income/deduction records.
Use IRS Tools: Create or log into your IRS Individual Online Account to view info, manage payments, and get secure access.
Review Tax Law Changes: Be aware of new deductions or credits, such as potential senior bonuses from the “One, Big, Beautiful Bill”.
Prepare for Digital Assets: Report all digital asset (crypto, NFT) transactions and income, potentially receiving Form 1099-DA.
Beware of Scams: Be vigilant against identity theft; know how to prevent and report it.
Filing & Refund Tips
E-File & Direct Deposit: E-filing with direct deposit speeds up refunds, as paper checks are being phased out.
Verify Identity: Have your 2024 Adjusted Gross Income (AGI) handy to confirm your identity when e-filing.
Choose Wisely: Select a reputable tax preparer if needed and review IRS guidance.
IRS Free File: If you earn under a certain threshold (e.g., $73k), use IRS Free File, as Direct File is no longer available.
Maximizing Savings (for 2025 Tax Year)
Retirement/Health: Maximize contributions to 401(k)s, IRAs, and Health Savings Accounts (HSAs) (limits rise to $4,400/$8,750 for HSAs in 2026).
Education: Contribute to 529 college savings plans.
Charity: Maximize charitable donations and consider Qualified Charitable Distributions.
Withholding: Adjust your paycheck withholding (W-4) if your refund or tax bill wasn’t ideal.
