What’s New This Tax Season: High-Level Changes Clients Should Be Aware Of

Each tax season brings a series of updates—some subtle, some more noticeable—that can impact how individual and household tax returns are prepared. While many changes occur automatically, awareness of what’s new helps ensure smoother preparation and fewer delays once filing begins.

Inflation-Adjusted Tax Thresholds

Federal tax brackets and standard deductions are adjusted annually to account for inflation. While these adjustments don’t require action on their own, they can affect withholding outcomes, refund expectations, and how income is reported. Understanding that thresholds may have shifted helps set realistic expectations early in the process.

Credits and Phaseouts

Certain credits—such as those related to dependents, education, or childcare—continue to be subject to income thresholds and phaseouts. Even when credits remain available, eligibility and required documentation may differ year over year depending on household or income changes.

Continued IRS Enforcement and Verification

The IRS continues to emphasize accuracy and verification, particularly for returns with discrepancies between reported income and third-party forms (W-2s, 1099s). Incomplete filings or missing documents can result in additional review or processing delays.

Why Early Awareness Matters

Tax preparation is most efficient when clients understand what information may be requested and why. Awareness allows time to gather documents, clarify details, and address questions before deadlines compress options.

Preparing With Awareness

Each tax season brings updates that may affect how returns are prepared and reviewed. Staying informed allows for smoother preparation and fewer delays once filing begins.

Exalted Financial Co. encourages clients to review their income sources, note any changes from the prior year, and begin gathering documentation early. Early awareness supports accuracy, efficiency, and confidence throughout the tax preparation process.

Existing Clients, get started by uploading your files into the client portal. New Clients, schedule your free 15-minute consultation today!