And just like that, we’re nearing the end of January. Thoughts are turning to “I’m tired of winter and can’t wait for spring” and “What’s the process again for getting all my tax stuff to K&Co?” We can’t do anything about the weather, but we’ve got you covered on the tax front.
Updates to the Personal Tax Prep Process
Our goal is to make the tax process as painless as possible. Over the past year, we’ve streamlined the personal tax process even further. Here is what to expect this year:
1. Engagement Letters: Late January
Engagement letters will go out shortly and must be signed and returned ASAP to secure your spot in K&Co’s tax preparation queue. These letters will be sent via the Ignition platform. You can work through each step electronically.
2. Tax Organizers and Tax Document Requests Lists: Early February
On February 1, you will receive an email from the Karbon for Clients platform. This online tool will provide a checklist of items (W-2’s, 1099’s, account statements, receipts, etc.) that K&Co has used to collect information for your tax returns in the past. The invitation will look something like this:
Then, you will:
- Let us know of any informational updates or changes.
- Review the checklist. (See below)
- Make a note if any items are not applicable to your 2025 return.
- Add any new items and/or updates.
- Upload supporting documents.
- Securely share bank information for tax payments or refunds due.
All personal tax documents are due to K&Co by February 20, 2026. If you are waiting on a Schedule K-1 for a business or trust, you can upload it when you receive it.
Note: Most of our customers find this digital process easier than dealing with scattered paperwork, shoeboxes of receipts, and hard-copy forms. However, if you prefer to mail your documents or deliver them to our office, please contact us so we can coordinate.
3. Review and bookmark tax documents, and draft return: within 1-2 weeks of receipt
Once we receive all your documents, the K&Co Tax Team will thoroughly review them, follow up with you on any missing documents or outstanding questions, and create a single bookmarked file containing all your documents for easy reference. Then, we will prepare a draft of your tax return.
4. Tax return review and approval: 1-2 weeks later
Once a draft of your return is ready, we will email a secure copy for your review, along with a detailed summary of your return, payments or refunds due, and next steps to submit.
5. E-filing and giving back: by April 15
The filing deadline to submit 2025 personal tax returns or file for an extension is Wednesday, April 15, 2026.
Once you sign your returns and forms electronically, our team will e-file them on your behalf. You will receive an email confirming receipt and acceptance by the IRS and the state.
As a B Corp and community-minded team, we also support like-minded organizations doing good in the world. When you file your return with K&Co, we’ll donate $50 per tax return to our non-profit partner. For the 2025 tax year, our partner is Broad Street Love, an organization that practices Radical Hospitality by providing stabilizing services of meals, mail, clothing, personal care, and medical and legal services for those experiencing poverty.
6. Process payments or refunds, and do a happy dance!
You fulfilled your annual responsibility as a U.S. taxpayer and gave back to the community!
For balances due and 2026 estimated taxes, you can pay via:
- Electronic payments (fastest and most secure)
- Paper check (Note: The IRS still allows this for now, despite a period of confusion last fall.)
All refunds will be paid via direct deposit, prepaid cards, or mobile wallet. You can securely share your bank information through Karbon for Clients. (See Step 2 for details.)
One Big Beautiful Bill Tax Provisions
The One Big Beautiful Bill signed in 2025 has some provisions that are coming into play this year, while others will be delayed. Keep these items in mind for your 2025 tax returns:
- The child tax credit increases from $2,000 to $2,200 beginning with your 2025 returns.
(Begins to phase out once income is over $400,000 for married filing jointly and $200,000 for single or married filing separately.) - State and local tax deduction cap increases from $10,000 to $40,000, effective for your 2025 returns.
(Begins to phase out once income is over $500,000 for married filing jointly and $250,000 for single or married filing separately.) - Senior tax deductions of $6,000 per taxpayer over age 65 are added on top of the current standard deduction or itemized deductions.
(Begins to phase out once income is over $150,000 for married filing jointly and $75,000 for single or married filing separately.) - Auto loan deduction is allowed up to $10,000 in annual auto loan interest on qualifying purchases of new, personal-use-only vehicles assembled in the U.S. and with a gross vehicle weight of under 14,000 lbs. (e.g., cars, small SUVs, motorcycles).
(Begins to phase out once income is over $200,000 for married filing jointly and $100,000 for single or married filing separately.) - Tips and overtime deduction will eventually be reported on your year-end Form W-2s. However, for the 2025 tax year, you can calculate the deduction portion using your pay stubs or another reasonable method for documentation. Here is the IRS guidance for the 2025 year. Beginning with tax year 2026, employers are required to provide this information on the annual Form W-2.
- “Trump Accounts” are not reported or factored into your personal tax returns. However, for every child born in the U.S. between January 1, 2025, and December 31, 2028, the U.S. government will make a $1,000 seed contribution to an account once the child has a Social Security number and the parents have elected to establish the account. The actual accounts will not be set up until July 5, 2026. New parents can follow this site for updates.
We’ve Got Your Back
Personal taxes seem to get more confusing each year. The media often oversimplifies things, and social media posts share all kinds of “tricks” to maximize taxes. Trust your K&Co experts instead.
Our team has your back. We study and apply these complex tax rules day in and day out. When we see something that could or does have an impact for you, we do our due diligence to maximize your tax savings by carefully considering your overall personal tax picture and how it all applies in your specific situation.
We also ask for your cooperation and grace in the coming months as our team navigates additional layers of complexity, too, including limited government guidelines and software systems, and IRS processes that are still being rewritten as we speak.
Thank you for the opportunity to come alongside and support you in this important annual process. We’re in this together!
Let's Plan Together
Thank you for the opportunity to come alongside and support you in this important annual process. We’re in this together!
Please reach out to your Customer Advocate or contact our office if you have any questions.
