It’s tax season, and many individuals and families are preparing to file their 2025 tax returns. While online tools and IRS resources can be helpful, understanding what applies to your specific situation often requires professional guidance. The IRS recently released Tax Tip 2026‑03, outlining key reminders on electronic filing, income reporting, and required tax forms. As you review this guidance, working with a local tax advisor can help ensure your return is accurate, complete, and filed on time.

IRS Tax Tip 2026‑03: Start with Digital Filing

Be sure you’re digitally connected. For some time now, the IRS has encouraged taxpayers to file electronically and maintain a bank account for direct deposit of tax refunds. Tax Tip 2026-03 addresses both points.

According to the IRS, electronic filing offers faster processing, greater accuracy, enhanced security, and quicker refunds compared with completing and mailing paper returns. To access your account information, view tax records, make payments and manage communication preferences, you can visit the IRS’s Individual Online Accounts at any time.

Regarding tax refunds, the IRS is taking a digital stance. For individual taxpayers, the agency is phasing out paper tax refund checks in favor of direct deposit and other electronic options, such as prepaid debit cards and digital wallets. This is part of a broader federal effort, mandated by Executive Order 14247, to transition away from paper-based payments and eventually adopt electronic payments for most federal disbursements and receipts.

Understanding What Income You Must Report

Determine what you need to report. How you earn income determines what you must report to the IRS and the documentation you’ll receive from payers to help you accurately report income. If you’re an employee who receives a Form W-2 and has no other sources of income, your filing requirements are generally straightforward.

Reporting Gig Work and Digital Asset Transactions

However, if you have additional sources of income, you may receive other specific IRS information forms from the payer to help you comply with tax-reporting requirements. Tax Tip 2026-03 notes that, for instance, gig workers must have a clear understanding of their reporting obligations.

If you bought, sold, exchanged or received digital assets — including cryptocurrency, stablecoins or nonfungible tokens — be sure to review your reporting obligations. You may receive Form 1099-DA from a broker summarizing certain 2025 transactions. Even if you don’t receive Form 1099-DA, you’re still required to answer the digital asset question on your return and report any related income, gains or losses.

Tax Forms to Gather Before Filing Your 2025 Return

Assemble your tax records. It’s critical to gather all of your documentation before you file. If you’re an employee, make sure you have a Form W-2 for each employer you work for. If you’re married and filing jointly, coordinate with your spouse so you have all your Form W-2s ready.

Tax Tip 2026-03 lists additional tax records that you may receive, depending on your situation, and will need when preparing your return. For example, gig workers may need to use Form 1099-K to accurately report their income. This form is issued by third-party payment platforms (such as PayPal and Venmo) to independent contractors to disclose the total payments made to the recipient.

Not every gig worker will receive a Form 1099-K, however. The One Big Beautiful Bill Act (OBBBA), signed into law in July 2025, retroactively reinstated the prior 1099-K reporting thresholds of $20,000 and 200 transactions. As a result, a payment platform is generally required to issue Form 1099-K only if you receive more than $20,000 in gross payments and have more than 200 transactions in a calendar year. Keep in mind that, even if you’re not issued a Form 1099‑K, the income you receive from such platforms is still taxable and must be reported on your tax return.

The IRS also mentions Form 1099-MISC, which you might receive from a business, nonprofit or government agency for miscellaneous payments of things such as rents, prizes and awards, and royalties. And if you earned interest in 2025, you may receive Form 1099-INT, which is issued by any entity that pays $10 or more in interest to a taxpayer during the year. These entities may include banks, credit unions, brokerage firms and other financial institutions.

Important Tax Law Changes That May Affect Your Return

Be ready for changes. The OBBBA made many significant changes to the tax code. Some changes went into effect this year and will affect your 2026 tax return, which you’ll file in 2027. However, certain new or expanded breaks apply to the 2025 tax year, so you’ll want to make sure you don’t miss out.

Don’t Wait Until the Tax Filing Deadline

With the tax filing deadline approaching, now is the time to review your records and understand how current IRS guidance applies to your 2025 tax return. Taxpayers across Maryland, Delaware, and the Eastern Shore may face different reporting considerations depending on income sources, filing status, and recent tax law changes. If questions arise or additional clarification is needed, working with a knowledgeable tax advisor who understands both federal requirements and regional considerations can help ensure your return is filed accurately and on time.

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