Guest Commentary | VITA offers free tax preparation amid major 2026 filing changes
The 2026 tax season is in full swing across Southwest Florida, and thousands of residents are gathering documents and preparing to file their 2025 returns. For many households, new tax rules and reporting changes this year could affect how much they owe — or how much they receive in refunds.
For households earning $70,000 or less, United Way of Lee, Hendry, and Glades’ Volunteer Income Tax Assistance (VITA) program offers free help preparing and electronically filing federal tax returns. IRS-certified volunteers prepare returns and help determine eligibility for valuable tax credits, including the Earned Income Tax Credit and childcare credits.
So far this season, VITA volunteers have already filed more than 4,600 tax returns across Southwest Florida, helping residents claim millions of dollars in refunds and tax credits that stay in the local economy. Before scheduling an appointment, however, taxpayers should be aware of several important reminders and recent tax law changes that may affect their returns.
No document, no reporting?
One of the most common misconceptions we see involves income reporting. Many taxpayers believe they only need to report income if they receive a tax form. In reality, all income must be reported — even if a tax document is not issued.
This is particularly important for gig workers and independent contractors who earn income through short-term or project-based work. Even if a worker does not receive a 1099 form, that income must still be reported to the IRS.
Reporting income can also benefit workers in the long term because it contributes toward Social Security and Medicare credits.
In addition, upcoming changes to reporting thresholds may lead to fewer tax forms being issued in the future. For example, a taxpayer who earned $600 from a contract job in the past may have received a 1099 form documenting that income. In the future, that reporting threshold may increase, meaning a taxpayer may not receive a form unless earnings exceed $2,000.
Even without receiving a form, the income must still be reported. Keeping careful records of earnings and expenses throughout the year can help taxpayers accurately report income and potentially reduce their tax liability.
New overtime tax break has limits
Another change affecting this tax season relates to how overtime compensation is reported following passage of the “One Big Beautiful Bill Act.”
Because the change is relatively new, there is not yet a completely standardized reporting method for overtime compensation on tax documents. Taxpayers should bring their final pay stub from 2025 to their tax preparation appointment to help verify the correct amount.
Only the overtime premium — not the full overtime wage — qualifies for the deduction. For example, if a worker earns $10 per hour and receives $15 per hour for overtime, only the additional $5 overtime premium may qualify.
In the future, the IRS has indicated that employers will report qualified overtime compensation in Box 12 of the W-2 form.
Married filing separately may hit taxpayers hard
The new legislation also affects taxpayers who choose the married filing separately status.
Several key deductions and credits are either reduced or unavailable for taxpayers using this filing status.
For example:
• $6,000 enhanced senior deduction — unavailable to married taxpayers filing separately.
• Reduced tax on overtime and tip income is not available for those filing separately, nor is the student loan interest deduction.
• Credits – taxpayers filing separately generally cannot claim the Earned Income Tax Credit, the Lifetime Learning Credit or the American Opportunity Credit.
• If itemizing — the mortgage interest deduction is limited to interest on $375,000 of debt for married taxpayers filing separately, compared with $750,000 for joint filers and the State and Local Tax (SALT) deduction cap is $40,000 for joint filers but is limited to $20,000 for married taxpayers filing separately. It is also important to note that if one spouse itemizes deductions, the other spouse is forced to itemize on their return as well.
Taxpayers who receive health insurance through the federal marketplace should also pay close attention to filing status in the coming years. Beginning in 2026, individuals filing separately may be required to repay the full amount of any premium tax credits they received.
Get your returns prepared and filed today
Finally, taxpayers should ensure they have a bank account available for direct deposit of refunds. Anyone wishing to receive a paper check can expect a six-week or longer delay before receiving their check. Direct deposit is the fastest way to receive a refund, often within five to seven days.
The United Way VITA program is currently scheduling appointments for low- to moderate-income households across Southwest Florida. More than two dozen sites are available throughout the region.
Appointments are required. To schedule an appointment, call 2-1-1 or 239-433-3900. Appointments may also be scheduled online at UnitedWayLee.org.
Mary Meador is senior volunteer engagement and VITA program manager at United Way of Lee, Hendry, and Glades and an IRS-certified tax preparer.