Tax News

CELEBRATING OVER 40 YEARS!

We wish to thank our wonderful clients/friends who have made our success possible! We plan to continue to be of service to you for many more years!

In addition, we want to express our gratitude to those who voted TRW’s as the

#1 Best Accountant and #1 Best Tax Preparer,

in the Quad Community Press Reader’s Choice Awards!

We truly appreciate you and every vote. THANK YOU!

IT’S TAX TIME AGAIN AND WE ARE HERE TO HELP!

We are ready, willing and able to save you money; and as always, when we prepare your return, you will receive complete, comprehensive, and confidential personalized service at affordable rates.

We are still working to provide a safe environment for you and your family as well as our staff. We kindly ask that you PLEASE do not come in if you are feeling ill nor bring anyone who is feeling ill and be aware that we NO LONGER HAVE PUBLIC RESTROOMS. We trust that we have your understanding and cooperation. We believe our history proves to you our commitment to ensuring the most tax savings possible and safety for all as well.

We request you complete the enclosed CLIENT CHECKLIST sheet, along with your gray folder and enclose all year-end tax documents you receive (opened and removed from envelopes). We have the following options:

Drop-off your complete information anytime we are open “OR” put them in the internal secure locked drop box to the left of our front door.

Send your information through our SECURE Client Portal: Link available on our website.
In Person Appointments can be scheduled this year, however they are very limited. If you have not had any changes remember we are familiar with your return, you can trust us, hence our long term client relationship. We will take care of you and your taxes, consider a drop off unless an appointment is absolutely necessary.
Mail/ship your complete information anytime 24/7.

Please check our website for important announcements and information and any office changes during the tax season. Also, watch for updates on our Facebook page year round.

When we work on your taxes, we will do a comparison with prior years returns (as always) and call with any questions or issues. TRW's is your complete one stop shop! We offer accounting, bookkeeping, payroll services and Small Business Consultations. We prepare all types of income taxes; individual, corporate, and partnership, estate, trust and non-profit. As always, we have attended comprehensive IRS/State of Minnesota approved tax updates. We offer computer generated tax returns, complete hard copies of tax returns, various tax topic brochures, free Electronic Filing, Direct Deposit, and much more!

INDIVIDUAL HIGHLIGHTS FOR 2025:

INDIVIDUAL HIGHLIGHTS FOR 2025: THE ONE BIG BEAUTIFUL BILL (OBBB)

The child tax credit has increased to $2,200/under age 17.
NO tax on tips… up to $25,000 in reported tips, cash and non reported tips do not qualify. Must have informational statement to substantiate if not included on W-2.
NO tax on overtime… up to $12,500/person ($25,000 married joint). The credit is based on the premium paid for the overtime (i.e. the “half” of time and a half). Must have informational statement to substantiate if not included on W-2.
SALT Increase… State And Local Tax deduction on the itemized deduction form (Schedule A) is now limited to $40,000. This is an increase from $10,000.
Up to $10,000 in car loan interest is deductible IF you purchased a new vehicle with a new car loan (signed after 12/31/24) and if the vehicle’s final assembly was in the U.S. Must include VIN to receive the deduction.
Senior Deduction: $6,000 additional deduction for taxpayers age 65+ by January 1, 2026 with income under $75,000 single, $150,000 married joint. You do not need to be receiving social security for this deduction.
TRUMP Accounts: Beginning in 2026, taxpayers can contribute up to $5,000 per year to a Trump Account for an eligible individual (one who has not attained age18 by the end of the calendar year and who has a social security number). Contributions are not deductible but tax on earnings are deferred. For U.S. citizens born after 2024 and before 2029 the Federal government will contribute $1,000 per child into every account.
The IRS is moving away from issuing and accepting paper checks for refunds, tax payments and estimated payments. We strongly encourage you to have your refund sent via Direct Deposit. As for payments, we encourage you to familiarize yourself with online payments and/or to create an account with the IRS at www.id.me.
REMINDERS:
MN Renters: Your CRP Form is REQUIRED to complete your MN tax return. It is no longer a separate filing. Your rent credit refund MUST be included ON your MN return. There will be no refund in August.
If you had MNSure (marketplace Health Ins.) Form 1095A is required; you’ll receive this in January.
Crypto-currency transactions (digital wallets) may be taxable income. Virtual Currency/Foreign Accounts/NFTs must be reported on your return. The IRS is targeting these transactions. Beginning for 2026 (extended) transactions Brokers will send a 1099-DA form with sales information.
Required 1099K (income from Venmo/PayPal/etc.) issuance for transactions totaling $20,000 and 200 transactions. Please keep in mind, any amount of income or profits from sales must be reported on your tax return no matter the dollar amount.

BUSINESS HIGHLIGHTS FOR 2025:

Qualified Business Income Deduction (QBI or Section 199A): Taxpayers (other than C Corps) can deduct up to 20% of QBI. For the most part - we see this as a great tax savings!
Business mileage rate .70 cents for 2025. (Remember logs are required).

Other Notables:

PLEASE NOTE OUR NEW EMAIL ADDRESSES below our signatures.
Beginning January 1, 2026; social security (FICA) wage limit increases to $184,500.00.
Remember, Partnership tax returns and “S” Corporations are DUE MARCH 15th.
All Corporations need Board Minutes, Meetings & Loan Documents up to date.
IRS notices have changed & have stricter response dates - we need to review these timely.
Due to New Tax Laws (OBBB) and the new forms, our preparation fee will be increasing approximately 10-15%. We appreciate your understanding as we have been attending extensive continuing education so that we can bring you the most up to date tax savings available.
THINKING OF STARTING A BUSINESS?
SEE US FIRST! We specialize in Small Business Consultations.
(“Mom Pop” to Multimillion dollar businesses use our system.) It covers but not limited to:

⦁ Types of Entities, Sole, Partnership, Corp, LLC… what’s best for you and the differences.

⦁ What is income and expenses along with the ease of keeping track of such? Keep It Super Simple!

⦁ Payroll vs. Contract labor; the why’s, along with the records needed for each.

⦁ Most important… a system designed to keep track of EVERYTHING by simply writing a check.

At TRW’s, we are Enrolled Agents (EA). Enrolled Agents are professional tax practitioners who have technical expertise in the field of taxation and are licensed to represent taxpayers before the Internal Revenue Service at all administrative levels. When you need up-to-date tax assistance; you can feel confident when you have TRW’s prepare your return that you’re dealing with professionals who will diligently work for YOU!

Sincerely,

Teresa R. Weinkauf, EA; President Cassi R. Gordon-Weinkauf, EA; CEO

teresa@trwstax.com cassi@trwstax.com

As with past years, at the time of preparing our letter, the Government could still be working on tax changes. Please understand that while we try to offer you the most current information; unfortunately Congress isn’t always as timely.

*BEWARE OF TAX SCAMS-this is increasing and now include TEXTING SCAMS*

The IRS warns taxpayers to be on the lookout for an array of evolving tax scams related to identity theft and refund fraud. The first point of contact by the IRS is typically via U.S. Mail, NOT a PHONE CALL! Although it has been reported that fake notices are now being used and sent in the mail as well. It is ALWAYS a good idea to consult us if you receive a notice. We are here to help you. In addition, the IRS does not use email, text messaging or any social media to discuss your tax issues.