IRS Announces Start of 2026 Tax Filing Season

The Internal Revenue Service has officially announced the beginning of the 2026 tax filing season and highlighted a number of changes that will impact many taxpayers.

Starting on Monday, January 26, 2026, the IRS will accept federal tax returns for the 2025 tax year, with the deadline set for April 15, 2026.

The agency anticipates that around 164 million individual returns will be filed, with most taxpayers choosing to file electronically.

This season brings the implementation of new tax provisions from the “One, Big, Beautiful Bill,” which could potentially lower tax obligations or increase refunds for eligible individuals.

New Tax Cuts Might Lead to Bigger Refunds in 2026

One major update taxpayers should note is the introduction of Schedule 1-A. This new schedule allows for the claiming of several recent deductions:

• Non-taxed tips — For the tax year 2025, individuals receiving qualified tips in certain occupations may be able to deduct up to $25,000 from their taxable income, though eligibility varies.
• Non-taxed overtime pay — Single filers can deduct up to $12,500 in overtime pay over their regular income, while joint filers may deduct up to $25,000, depending on income levels.
• Interest on car loans exempt from tax — Taxpayers can now deduct up to $10,000 of qualified auto loan interest, pending income thresholds.
• Deductions for seniors — Taxpayers aged 65 and older could receive an additional deduction of up to $6,000 for individuals and $12,000 for joint filers, though this diminishes for those earning above specified limits.

More detailed information regarding income qualifications can be accessed at MassLive.com.

Transition Away from Paper Refund Checks

The IRS is advising taxpayers to set up direct deposit, noting that paper checks are being phased out as part of a broader effort to modernize federal payment systems.

Those without bank accounts are encouraged to open one prior to filing their taxes to prevent delays in refund processing.

IRS Offers Online Tools for Tax Filers

The IRS is promoting the use of its online tools available at IRS.gov to facilitate the filing process and help avoid mistakes, including:

• IRS Personal Online Account – For checking balances, payments, and tax records.
• Where can I find my refund? – To monitor refund statuses.
• IRS Free File – Taxpayers can begin preparing their tax returns using this free service starting January 9, 2026, though it is limited to those with incomes of $73,000 or less for 2025. Note that processing of tax returns won’t commence until January 29.

Military personnel and some veterans also have the option to file for free through the MilTax program, offered by the Department of Defense.

Important Income Reporting Requirements

The IRS is reminding taxpayers that all taxable income must be reported, including instances where certain documents have not been received. This requirement encompasses:

• Form 1099-K for earnings from payment applications and online sales.
• Form 1099-DA for transactions involving digital assets.