The IRS on November 26, 2025 issued the first in its annual series of "Get Ready" reminders, IR-2025-116, urging taxpayers to gather records and confirm direct-deposit information ahead of the 2026 filing season. The notice itself is largely administrative, but the agency was explicit about why the timing matters this year: the One Big Beautiful Bill Act (OBBBA) changes federal taxes, credits and deductions starting with 2026, and the IRS said it will keep releasing implementation details as they become final. For high-income households, that makes the last weeks of 2025 a genuine deadline, not just a filing reminder.
What the IRS notice actually covers
IR-2025-116 asks taxpayers to collect W-2s, 1099s, bank account numbers and digital-asset transaction records before filing, and to set up an IRS Online Account to view transcripts, prior payments and an Identity Protection PIN. It also flags that the IRS began phasing out paper refund checks on September 30, 2025 under Executive Order 14247, so most filers now need routing and account numbers on file to get a refund by direct deposit. None of that changes a household's tax bill. What does change the bill is the set of OBBBA provisions that take effect January 1, 2026 — and several of them reward action before December 31.
Who is affected
The households with the most at stake are itemizers in or near the top 37% bracket, which for 2026 begins at $768,700 of taxable income for joint filers and $640,600 for single filers, according to the IRS's 2026 inflation adjustments. Four year-end moves are worth reviewing before the calendar turns, each covered in more depth elsewhere: charitable bunching ahead of the new 0.5%-of-AGI floor on itemized gifts, using this year's $40,000 state-and-local-tax cap before it phases down for higher earners, harvesting investment losses, and weighing a Roth conversion.
The after-tax math
Example: a married couple with $900,000 of income has $60,000 of state and local taxes paid, $50,000 planned for charity, and a brokerage account with both gains and losses. Under the SALT cap available through 2029, they can deduct up to $40,000 of state and local taxes as long as their modified adjusted gross income stays under $500,000; above that, the cap shrinks by 30 cents for every dollar of MAGI over the threshold. At $900,000 of MAGI, their $40,000 cap would be fully phased down to the $10,000 floor, so the SALT deduction is far smaller than the headline number suggests. Their $50,000 charitable gift, if made in 2025, is fully deductible; the same gift made in 2026 would lose its first $4,500 (0.5% of $900,000) to the new floor, and the remaining deduction would be worth roughly 35 cents per dollar in the top bracket instead of 37. If the couple also has $15,000 of realized losses and $5,000 of gains in taxable accounts, selling to realize the net $10,000 loss before year-end offsets the gains dollar for dollar and shelters up to $3,000 of ordinary income, per IRS Topic 409, with the rest carried forward to future years.
Moves to discuss with your advisor
- Whether finishing planned 2025 and 2026 charitable giving through a single 2025 contribution — directly or through a donor-advised fund — captures this year's deduction rules before the floor and cap apply.
- Whether it makes sense to accelerate or defer income and deductible expenses around the $500,000 MAGI threshold where the SALT cap begins to phase down.
- Reviewing taxable brokerage accounts for unrealized losses that could offset 2025 gains before December 31, since the $3,000 ordinary-income offset and any carryforward are governed by federal rules that do not extend the deadline.
- Whether converting a portion of a traditional IRA to a Roth this year makes sense given current income, since a conversion is taxed as ordinary income in the year it happens and there is no dollar limit on how much can be converted.
- Confirming bank routing and account numbers are on file with the IRS given the shift away from paper refund checks.
What to watch
The IRS has said more "Get Ready" notices will follow through year-end and into January, likely with specifics on the new no-tax-on-tips, no-tax-on-overtime, no-tax-on-car-loan-interest and senior deductions that OBBBA created for 2026. Households that itemize should also watch for IRS guidance clarifying exactly how the 0.5% charitable floor is calculated in years with unusual income, such as a bonus, equity vesting or a business sale, since that detail affects how much a December gift is worth relative to waiting.
Sources
- First reported It's not too early to get ready for the 2026 tax season (IR-2025-116) — IRS
- IRS releases tax inflation adjustments for tax year 2026, including amendments from the One, Big, Beautiful Bill — IRS
- SALT Alert: Final OBBBA Temporarily Expands SALT Cap and Revises AMT Phaseout — Venable LLP
- OBBBA Solidifies High Estate Tax Exemptions and Charitable Giving Changes — Goodwin
- Topic no. 409, Capital gains and losses — IRS
After TAX is an independent publication. Articles are general information, not tax, legal or investment advice. Consult a licensed professional about your situation.
