Dear Client:

Happy New Year! May 2026 be better than ever!

This newsletter provides information that will help ensure that we do not miss any eligible

tax credits or deductions when filing your tax return. Know that you are appreciated and

that we value your business. Included in this version is a brief update on the major tax

changes implemented.

Deadlines

The tax filing deadline for personal returns (form 1040), without extension, is April 15, 2026.

We recommend that you compile your information and submit it to us as soon as possible.

We process returns on a first-come, first-served basis. If you would like your return

completed by the tax filing deadline, we must have your information no later than Monday,

April 6th. If your information is received after April 6th, your return may be extended.

Appointments

You do not need to schedule an appointment with us for the purpose of dropping off your

documents, unless you are new to us or have a new or extenuating circumstance that you

need to discuss. Scheduling an appointment is very simple. Call us at 717-346-0050 or visit

our website at www.millstaxcpa.com and tap the Schedule button.

Drop-Off Procedures

You may drop off your information during office hours, which are Monday through Thursday

from 7:30 am until 6:00 pm. and Fridays from 7:30 am until 3:00 pm. We are by

appointment only on weekends.

Secure drop boxes are located on the right side (from the front) of our Shiremanstown

office, located at 16 West Main St., or at Dave’s house, located at 2197 Canterbury Drive,

Mechanicsburg. Both will be checked multiple times daily. Place all your documents within

a large envelope when using a drop box. On the outer envelope, include name, telephone

number and email address.

Secure Portal

Online Portal is where you can safely and securely upload your tax documents. Use of the

portal is 100% optional. We do not require use of the Portal and do not suggest it for those

of you who do not use a computer regularly. Please notify us when your upload is complete.

We encourage your review of helpful hints posted on the website regarding portal

utilization. The link to the portal is at our website.

For those of you who have used the Portal in years past, the software has been updated to

dramatically improve your experience. You will see many changes including simplified

navigation, a modern homepage, live return status, quick profile updates and more.

If you would like to transition from dropping off paper to interfacing with us digitally, call or

email us and we can set you up on the Portal.

Tax Organizer

Our Tax Organizer helps you know what documents we need and provides a list of

questions which could trigger an important change in your tax circumstance. For those not

using the portal, contact the office (717-346-0050) in January if you want an organizer

mailed to you. If you are on the portal, we will be loading your tax organizer in mid-January.

You will receive an email notifying you when it is available. The organizer helps you prepare

for the tax filing season. We do not require you answer every question. Its meant to help you.

Pick up procedures

We will contact you when your return is completed. If you are using the Secure Portal, you

can safely download your tax documents to your PC. We will obtain signatures remotely. If

not using the portal, we will notify you when your return is complete, via a call or email.

Call to make an appointment to pick up or use our online Appointment Setter to schedule

an appointment for pick up. Although we prefer payment by check, we do accept

debit/credit for a small additional fee.

Questionnaire

When providing your documents, please complete the questionnaire below. You can do so

easily by visiting our website to complete the form provided at https: //

www.millstaxcpa.com/questionnaire/. Alternatively, you can print the questionnaire below

and enter your responses.

Tax Law changes

In the summer of 2025, we saw the passage of the Reconciliation Act of 2025 (better known

as the “One Big Beautiful Bill”). Here is brief review of the go-forward changes which most

commonly will impact you.

New Senior Deduction – If you are over age 65 and you make less than $175,000 if single

or $250,000 if married, you will receive additional deduction up to $6,000 per person as it is

subject to phase-out. Be advised that it has nothing to do with Social Security. The only

factors are age and income.

State and Local Taxes cap – Starting in 2025, you can now deduct state and local taxes up

to $40,000. Previously the cap was $10,000. So some of you may be able to itemize, unlike

in prior years, especially if you incur significant real estate taxes.

No tax on tips – You can deduct up to $25,000 per return for qualified tips. Tips must be

voluntary and not pre-set or required (e.g., table larger than X). We will need substantiation

for the tip amount.

No tax on overtime – In 2025, a single person may deduct $12,500 of overtime while

married persons can deduct up to $25,000, even if only one spouse earned overtime.

Overtime is per the Fair Labor Standards Act (hours above 40 per-week. Double time or

holiday pay does not qualify. The deduction only regards the overtime portion (e.g. if you

worked an hour over overtime and your pay rate is $20, /hr., you would deduct $10. Not the

entire $30.) We will need substantiation of the overtime, such as year end pay stub.

Personal car interest – Up to $10,000 in 2025 for qualifying loans. Car’s final assembly

must be in the US. We are unclear regarding the loan document you will receive to support

the interest. At the very least, we will need year-end loan statement showing interest paid

to date. We will need car information such as VIN number, etc.

Pennsylvania Change

The most impactful change with PA tax law was the addition of the Earned Income Credit

(EIC). If you qualify for the Federal EIC, then you will automatically qualify for the PA

version of the credit.

Helpful Hints – Here are the most common items which slow down the tax

preparation process:

1. If you have a Health Savings Account (HSA), we need Form 1099-SA from your HSA

provider. Although not always mailed, you can most likely find it on your HSA portal.

2. For child care expenses, we will need the annual receipt provided by the provider.

3. Watch your mail in January if you receive an IP PIN from the IRS. Keep the letter from IRS

where you can retrieve it. If you had an IP PIN last year, you will have a different one this

year. If it does not come via the mail, log onto your IRS account and retrieve it. Consider

setting up an IRS Online Account. The IRS continues to improve information online.

4. If you sold Crytpo, you need to calculate your net gain or loss on that transaction. Check

with the brokerage firm for year-end reporting on your Crypto transactions.

When providing your documents, please include answers to our standard questions:

1. At any time during 2025, did you receive, sell, send, exchange or otherwise acquire any

financial interest in any virtual currency? If so, we will need Summary of Capital

Gains/Losses for the transactions.

2. Have or will you be contributing to an IRA for 2025? If so, what type (Traditional or Roth)

and by what amount? Did you withdrawal from an IRA or retirement plan in 2024?

3. Any charity, by way of cash or check?

4. Any noncash contributions (Salvation Army/Goodwill, etc.)?

5. Any unreimbursed business expenses, including what was paid out-of-pocket relating to

your job (union dues, trade tools, uniforms, etc)?

6. Any residential energy improvements made to your primary home during the tax year

(insulation, doors, windows, HVAC, geothermal, solar, etc.)? If so, please provide a

description of the improvement made and amount.

7. Did you purchase health insurance through the marketplace? If so, please be sure to

include Form 1095A in your tax documents.

8. Any TAP 529 college savings plan contributions in 2025? If so, please provide the amount

contributed by individual.

9. Was there any change to your account for direct deposit purposes? If so, please provide

us with a cancelled check.

10. Did you move? It is important that you provide the dates you moved and dates of your

employment if you changed jobs in 2025.

11. Do you and/or your spouse have a Health Savings Account (HSA)? If so, please provide

Form 1099-SA for each account.

12. Did you purchase an Electric Vehicle (EV) by 9/30/25? If so, we will review all the details

to determine eligibility for the EV credit.

13. Did you make any Estimated Tax payments during 2025 to IRS, PA or Local PA Tax?

14. Did you engage in any sort of gambling, including sports gambling? The IRS requires you

to report winnings. You can deduct losses as an itemized deduction. Check your gambling

app for any tax documents associated with 2025.

15. Do you have any foreign bank accounts or foreign investment accounts?

16. Did you earn overtime or any tip income? Did you buy a new car in 2025 and incur interest on a loan in order to buy it.