Tax Prep Tips ... Straight From the IRS

It's officially tax season. As you prepare your 2025 return, you can turn to many resources for help, including your SSB tax advisor. For guidance straight from the source, the IRS has you covered. Tax Tip 2026-03 provides the following practical tips for individuals:

Be sure you're digitally connected. For some time now, the IRS has encouraged taxpayers to file electronically and maintain a bank account for direct deposit of tax refunds. Tax Tip 2026-03 addresses both points.

According to the IRS, electronic filing offers faster processing, greater accuracy, enhanced security and quicker refunds compared with completing and mailing paper returns. To access your account information, view tax records, make payments and manage communication preferences, you can visit the IRS's Individual Online Accounts at any time.

Regarding tax refunds, the IRS is taking a digital stance. For individual taxpayers, the agency is phasing out paper tax refund checks in favor of direct deposit and other electronic options, such as prepaid debit cards and digital wallets. This is part of a broader federal effort, mandated by Executive Order 14247, to transition away from paper-based payments and eventually adopt electronic payments for most federal disbursements and receipts.

Determine what you need to report. How you earn income determines what you must report to the IRS and the documentation you'll receive from payers to help you accurately report income. If you're an employee who receives a Form W-2 and has no other sources of income, your filing requirements are generally straightforward.

However, if you have additional sources of income, you may receive other specific IRS information forms from the payer to help you comply with tax-reporting requirements. Tax Tip 2026-03 notes that, for instance, gig workers must have a clear understanding of their reporting obligations.

If you bought, sold, exchanged or received digital assets—including cryptocurrency, stablecoins or nonfungible tokens—be sure to review your reporting obligations. You may receive Form 1099-DA from a broker summarizing certain 2025 transactions. Even if you don't receive Form 1099-DA, you're still required to answer the digital asset question on your return and report any related income, gains or losses.

Assemble your tax records. It's critical to gather all of your documentation before you file. If you're an employee, make sure you have a Form W-2 for each employer you work for. If you're married and filing jointly, coordinate with your spouse so you have all your Form W-2s ready.

Tax Tip 2026-03 lists additional tax records that you may receive, depending on your situation, and will need when preparing your return. For example, gig workers may need to use Form 1099-K to accurately report their income. This form is issued by third-party payment platforms (such as PayPal and Venmo) to independent contractors to disclose the total payments made to the recipient.

Not every gig worker will receive a Form 1099-K, however. The One Big Beautiful Bill Act (OBBBA), signed into law in July 2025, retroactively reinstated the prior 1099-K reporting thresholds of $20,000 and 200 transactions. As a result, a payment platform is generally required to issue Form 1099-K only if you receive more than $20,000 in gross payments and have more than 200 transactions in a calendar year. Keep in mind that, even if you're not issued a Form 1099‑K, the income you receive from such platforms is still taxable and must be reported on your tax return.

The IRS also mentions Form 1099-MISC, which you might receive from a business, nonprofit or government agency for miscellaneous payments of things such as rents, prizes and awards and royalties. And if you earned interest in 2025, you may receive Form 1099-INT, which is issued by any entity that pays $10 or more in interest to a taxpayer during the year. These entities may include banks, credit unions, brokerage firms and other financial institutions.

Be ready for changes. The OBBBA made many significant changes to the tax code. Some changes went into effect this year and will affect your 2026 tax return, which you'll file in 2027. However, certain new or expanded breaks apply to the 2025 tax year, so you'll want to make sure you don't miss out.

The tax filing deadline is fast approaching. If you have questions or need guidance filing your 2025 return or an extension, contact your SSB tax advisor and work closely with him or her to file accurately and on time.

©2026