Garrys TAX Service

03/05/2026

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The U.S. Postal Service (USPS) is changing how their postmarks work, and it could affect tax filings in 2026. Postmarks will still show the date mail is first processed by USPS, but they may not show the date you dropped something off at a post office or put it in a mailbox. That means time sensitive items like tax returns and payments could be impacted.

What should Minnesota taxpayers do?

If you plan to mail your tax return or payment, we recommend:

Sending it several business days before the deadline.
Bringing it to a USPS retail counter and asking for a manual postmark.

01/12/2026

My new website is up and working. please schedule thru the website for convenient scheduling. go to the website and click the book now button.

Welcome to Garry's Tax Service, your trusted partner for tax preparation in Cottage Grove, Minnesota. With 40 years of experience, we specialize in self-employed businesses, rentals, and personal taxes. Let us handle your taxes with precision and expertise.

01/08/2026

Taxpayers should prepare for the 2026 tax season, which officially begins on January 26, 2026, when the IRS starts processing 2025 returns. Significant legislative changes from the One, Big, Beautiful Bill (OBBB) take effect this season, introducing new deductions and modernizing refund methods.
Key Tax Changes for 2026 Filing
New Schedule 1-A: This form is used to claim major new deductions, including exclusions for tips ($25,000 limit), overtime pay, and up to $10,000 in car loan interest for U.S.-assembled new vehicles.
Enhanced Senior Deduction: Individuals aged 65 and older may qualify for an additional deduction of up to $6,000 ($12,000 for couples), which is separate from and in addition to the standard deduction.
Phaseout of Paper Checks: Following a presidential executive order, the IRS is phasing out paper refund checks. Taxpayers are strongly urged to use direct deposit for faster and more secure payments.
Increased SALT Cap: The deduction limit for state and local taxes (SALT) has been raised from $10,000 to $40,000 for the 2025 tax year.
Trump Accounts: Parents can now elect into "Trump Accounts," a new retirement savings vehicle for children under 18, which may include a $1,000 government contribution for eligible U.S. citizens born between 2025 and 2028.
Essential Preparation Steps
Access Your Online Account: The IRS recommends logging into your Individual Online Account to view tax records, manage communication preferences, and track payments.
Review Reporting Rules: Ensure you have records for gig work and online sales; Form 1099-K will be issued if transactions exceed $20,000 and 200 payments.
Report Digital Assets: All transactions involving cryptocurrency, stablecoins, or NFTs must be reported on Form 1040, potentially using the new Form 1099-DA from brokers.
Gather Documentation: Collect Forms W-2, 1099s, and VIN numbers for vehicles if claiming the car loan interest deduction.
Use Free Filing Tools: Qualified taxpayers with an AGI of $84,000 or less can begin using IRS Free File starting January 9, 2026.
The standard deadline to file and pay any taxes owed remains April 15, 2026.
Would you like more details on how to qualify for the new car loan interest deduction or how to set up a Trump Account for your child?
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