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It’s Not Too Early to Get Ready for the 2026 Tax Season

The IRS has released its first official “Get Ready” notice for the 2026 tax season — and this year, early preparation matters more than ever.

Why?

Because the One, Big, Beautiful Bill brings sweeping changes to how federal taxes, credits, and deductions work for tax year 2026. These include:

✔ No tax on qualified tips
✔ No tax on overtime premium pay
✔ New car loan interest deduction
✔ New temporary deduction for seniors
✔ Updated reporting rules
✔ Changes to Forms W-2, 1099, and IRS transcripts

The IRS urges taxpayers to begin preparing now — not next January — to avoid delays and costly mistakes. At Velin & Associates, we are already helping clients across industries (YouTubers, online sellers, medical practices, dentists, Amazon sellers, and high-income individuals) get ready ahead of time.

Below is everything you need to know.

1. Start Gathering & Organizing Your Tax Records Now

The IRS stresses that organized documentation is the key to filing accurately and avoiding refund delays.

Begin collecting:

✔ Why This Matters in 2026

Many new deductions require proof, especially tips, overtime, and digital transactions. Without documentation, deductions can be denied.

Examples

Example A: YouTuber / TikToker With Multiple Income Streams

One creator had income from:

In 2024–2025, the IRS treated some of these as taxable tips. Beginning 2026, creators may benefit from the no-tax-on-tips deduction — but only if they can separate tips from business income.

We created a clean transaction log linking:

This ensures they fully qualify for the deduction.

Example B: Shopify / Amazon Seller With High 1099-K Volume

A Shopify store owner had 24,000+ transactions in 2025. Their 2026 return will require:

We created a monthly financial folder system so they aren’t overwhelmed at tax time — and so they can prove business income during any IRS review.

Example C: California Dentist With Overtime Staff

Dental and medical practices often pay:

Under the new law, overtime premium pay is deductible — but you must track it separately. We implemented payroll reporting that automatically distinguishes:

This ensures maximum deduction while staying IRS-compliant.

Example D: High Net Worth Individual With Multiple Financial Accounts

One HNWI client had:

We built a single digital tax vault so all statements flow in monthly — avoiding missing forms and preventing IRS notices.

2. Set Up or Check Your IRS Online Account

The IRS encourages taxpayers to create an IRS Online Account before filing season.

Through the account you can:

✔ See your adjusted gross income (AGI)
✔ Access your tax return transcripts
✔ View/print all available W-2s & 1099s
✔ Make & schedule payments
✔ Retrieve or manage an IP PIN
✔ Authorize your CPA (Velin & Associates) quickly

Why This Matters for 2026

With the One, Big, Beautiful Bill:

An online account speeds everything up — especially for freelancers and creators who often have dozens of income sources.

3. Direct Deposit: Required for Most Refunds in 2026

As of Sept. 30, 2025, the IRS began phasing out paper refund checks in compliance with Executive Order 14247.

This means:

✔ Most taxpayers must provide bank routing and account numbers
✔ Refunds will be issued via direct deposit only
✔ Prepaid debit cards and digital wallets may qualify (if they have routing numbers)

What This Means for Our Clients:

Example E: Amazon Seller Without a Traditional Bank Account

One Amazon seller only used PayPal and Shopify Balance.
We helped them open an FDIC-insured business account to receive future refunds — and to avoid refund delays.

Example F: Creator Receiving Deposits on Cash App

Cash App provides routing & account numbers for certain accounts.
We verified eligibility and helped the client link it for IRS refunds.

4. Understand How the New 2026 Deductions Affect You

The IRS is rolling out guidance on major deductions, including:

These will affect filing for nearly every industry we serve:

• TikToker or YouTuber
• Shopify or Amazon seller
• Dentist or doctor
• High-net-worth individual
• Filmmaker or digital producer

We expect updated IRS forms by early 2026 — and we will update clients immediately.

5. What You Should Do NOW to Prepare
(Velin & Associates Checklist)

✔ Step 1 — Create your income folder

Include all W-2s, 1099s, 1099-Ks, tip logs, and payouts.

✔ Step 2 — Reconcile business accounts monthly

Especially if you sell on Shopify, Amazon, Etsy, or social platforms.

✔ Step 3 — Separate tips & overtime

You may qualify for big new deductions.

✔ Step 4 — Update direct deposit info

Refunds will no longer be mailed.

✔ Step 5 — Schedule a tax planning session

Especially if you have:

Prepare for the 2026 Tax Season Early — We Can Help

This is one of the biggest tax law changes in decades.
Getting ready now means:

✔ Faster refunds
✔ Fewer IRS letters
✔ Larger deductions
✔ Cleaner documentation
✔ Less stress at filing time

For more information about our tax planning services, contact us today: visit our website.

Velin & Associates, Inc

8159 Santa Monica Blvd STE 198/200 West Hollywood, CA 90046
323-902-1000
dmitriy@losangelescpa.org

CPA for YouTubers | CPA for Shopify Store | CPA for Online Commerce | CPA for Creators | Shopify Store CPA | CPA for Filmmakers | CPA for Amazon Business | Amazon Business CPA | CPA for Dental Practice | Dentist CPA | Dental Business CPA | Online Commerce CPA | CPA for TikTokers | CPA for Doctors | CPA for Medical Practice | CPA for High Net Worth Individuals



Our firm provides the information in this e-newsletter for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.

Have tax questions? Ask Us.

The first step to hassle-free accounting, tax returns, and tax planning starts by reaching out to one of our representatives.

PHONE (323) 902-1000

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