Gather all ingredients and necessary utensils.
Cut the Velveeta and cream cheese into small cubes.
In a medium saucepan, combine Velveeta and cream cheese over low heat.
Stir occasionally until cheeses are melted and smooth.
Add the can of Rotel tomatoes, including the juice, to the melted cheese mixture.
Stir well to combine all ingredients evenly.
Sprinkle in the taco seasoning and mix until fully incorporated.
If desired, add sliced jalapeños for added spice.
Allow the dip to simmer on low heat for about 5 minutes, stirring frequently.
Remove from heat and serve warm with tortilla chips.