As we wrap up the year, our team wants to share a few important updates and reminders to help your 2025 tax filing go smoothly.

Congress did pass a new tax bill this year (the “One Big Beautiful Bill”), but for most individuals, the day-to-day rules will feel very similar to last year. The standard deduction remains high, and many taxpayers will still not itemize.

Your tax prep fee

Your 2025 preparation fee should generally be consistent with last year unless you started a new business, purchased a rental property, or had other major changes.

Important updates for this filing season

1) Late / rush fee for last-minute returns

Our calendar fills up every year. If you wait until the last minute, we will either:

  • charge a $200 rush fee, or
  • file an extension for you.

To avoid the rush fee, please get us all your tax information by:

  • April 1 (for the April deadline), or
  • October 1 (if you are extended)

Also: we are closed on Sundays this year and are not scheduling Sunday appointments.

2) Social Security cards required for certain credits

If you are still working, have kids, or are claiming credits, the IRS is paying much closer attention to identification. We need a copy of Social Security cards for everyone on the return if we have not received them from you in the last ~5 years.

3) Overtime: tax-free portion (but not listed on your W-2)

Under the new law, some overtime pay may qualify for a special reduction. For 2025, employers are not required to list the overtime amount separately on your W-2.

If you worked overtime, please provide:

  • a copy of your final paystub of the year
  • if you had multiple jobs, we need one from each employer

Most people are paid 1.5× their normal rate for overtime. The “.5” portion is what is deductible (about 1/3 of the overtime pay).

4) New tip deduction

  • Your W-2 will report tips paid through your employer.
  • We also need any unreported tips you received.

5) Medical expenses: totals only (please don’t send every receipt)

Instead of sending every medical receipt, please total your out-of-pocket medical expenses by category (examples: premiums, prescriptions, doctor visits, dental, mileage, etc.) and provide us the totals.

Please keep the receipts in your own files in case the IRS requests proof later.

How to get us your tax documents (3 options)

Option 1: In-person appointment

Schedule a time to meet with us and bring your tax documents.

(Again: no Sunday appointments this year.)

Option 2: Paper drop-off

Bring your documents to the office during normal business hours. We’ll let you know when your return is ready and schedule a review if you’d like one.

Important: the drop-off box is gone.

Option 3: Secure online portal (recommended)

Upload your documents through our secure clients portal.

  • Everyone with an email address will receive a Canopy questionnaire to help gather information.
  • You may receive an additional questionnaire (children or foreign accounts).
  • Please sign the electronic organizer and Form 7216.

When you are finished uploading, please email us so we know you’re done. Many clients upload documents in batches, and we can’t tell when you’ve completed everything unless you tell us.

Copies, delivery, and payment timing

  • We provide a digital copy of your return by default. If you want a paper copy mailed or ready for pick-up, please tell us specifically so we can print it.
  • For returns delivered by mail or through the secure portal, fees are collected before we release the completed tax return.

Reminder about our Philippines team

We have several team members in the Philippines who assist with accounting, bookkeeping, and business returns. They may also help organize and input information for individual returns (if you approve Form 7216)—always under supervision of our U.S. team. This allows us to spend more time reviewing and advising you, rather than just keying in numbers.

Important document reminders

Please don’t forget these common “missing items”:

  • Bought or sold a home in 2025? We need the closing/settlement statements for both the purchase and the sale.
  • Foreign bank/investment accounts or foreign income? Please tell us so we can determine whether foreign account reporting is required. IRS scrutiny remains high.
  • Cryptocurrency activity? If you bought/sold crypto, please provide reports showing gains/losses from your platforms or tracking software. You may receive a 1099-DA.

IRS is phasing out check refunds and check payments

Due to a new federal mandate, the IRS and Treasury are phasing out issuing and accepting paper checks for most federal payments and tax remittances. Starting around late September 2025, tax payments and refunds will generally need to be handled electronically (IRS Direct Pay, EFTPS, direct deposit, or other approved electronic methods). Estimated tax payments can be handled electronically as well.

If you request a refund by check, you may receive an IRS letter requesting direct deposit information. If you don’t complete it, the IRS may still mail a check 6–8 weeks later—meaning it could take roughly 3 months from filing to receive a paper check.

We strongly recommend creating an online IRS account to manage payments, check refund status, set up installment plans, and more.

If you’d like help making payments electronically or automating estimated taxes, we can assist as part of your return.

Estimated tax management option: If you need help adjusting payment amounts, canceling estimated tax payments, etc., we charge $300 to manage estimated taxes for the year. Vanessa or a team member can make or stop IRS payments if you’re not online.

Extensions

Extensions require an estimate of the tax due, and payment is still due by April 15 to avoid additional penalties. We also require a signed engagement letter before we submit an extension for you.

Thank you

We truly appreciate your trust and the opportunity to serve you. If you have questions or want help deciding the best way to get your documents to us this year, please call or email us anytime.