IRS Expects Busy Tax Filing Season

The Internal Revenue Service anticipates that millions of U.S. taxpayers will submit their income tax returns by the end of Monday, marking the start of the federal tax filing season.

Generally, a significant portion of early filers often receives a refund. It seems reasonable, right? Why should the government hold onto your money longer than necessary?

This year, many Americans might find that filing their tax returns is even more confusing than usual. The lengthy list of tax law changes introduced by President Trump’s One Big Beautiful Bill Act last July has led to some misunderstandings. There’s excitement surrounding these changes, which are predicted to boost average refunds by $300 to $1,000.

Here’s a quick guide to help you navigate this year’s tax updates.

Feeling Confused? You’re Not Alone.

Even seasoned CPA John Hawkins, in his 40th tax season, admits the changes this year are quite complicated. Because of this, professionals like him have spent the last six months reviewing and learning about the new tax law.

“We’ve had numerous continuing education classes on this,” Hawkins explained. “There are many nuances, and we had to dig into what those nuances are.”

Recent studies suggest that around one-third to half of U.S. taxpayers rely on tax professionals to prepare their returns. Nearly 40% of those filing on their own opt for free or paid tax software, with TurboTax being notably popular.

Adam Abplanalp, managing partner at Cobalt CPAs in Northeast Portland, noted the unfortunate reality of how complex the tax code is, especially with ongoing changes. This year continues that trend.

“Our personal tax system is a lot more convoluted than it ideally should be,” Abplanalp remarked.

For more on significant changes and their implications, it’s worth checking out local coverage.

W-2s Might Be Misleading for Some, with Exceptions for Deductions

This season introduces some enticing tax breaks—like “Tax Free on Tips,” “Tax Free on Overtime,” and an extra $6,000 deduction for taxpayers aged 65 and older. However, there are income limits and various exceptions that accompany these incentives.

“It’s easy to hear about these and think, ‘Wow!'” Abplanalp noted. “But they all come with ‘gotchas.’ The laws sound more appealing when you hear about them than when you dive into the details.”

For instance, to avoid interest on an auto loan, the car must have been bought new in 2025 for personal use and assembled in the U.S. The credit also phases out for individuals with adjusted gross incomes over $100,000, or $200,000 for joint filers.

If you’re among the limited group eligible for the new deductions for tips or overtime, be ready for some potential filing complications. Your W-2 may not clearly show the tip or overtime amounts eligible for deduction.

“Employers likely won’t indicate those figures,” Hawkins advised. “Individuals will need to calculate it on their own.”

When Possible, Avoid Paper Returns and File Electronically.

Last year, 93% of individual federal tax returns were filed electronically, with nearly 95% doing so in Oregon. Filing electronically generally leads to faster refunds when needed.

How Long Until You Receive Your Federal Refund?

Even with electronic filing, it may take a few days for the IRS to “accept” your return. Following acceptance, the IRS says it could take up to three weeks to process it, while paper returns may take at least six weeks.

Challenges may arise this year, as the IRS has faced unprecedented disruption over the past year. The agency saw its workforce reduced by about a quarter last year and experienced complications from a six-week federal government shutdown in fall.

What Could My Refund Amount Be?

According to reports, the average taxpayer received a federal refund of $3,167 last year. This year, some analysts predict that number might rise by $300 to $1,000.

In Oregon, the average refund was around $1,300, and it could be even higher this year thanks to the state kicker, which gives back surplus taxpayer revenue. While the exact amount each kicker recipient will receive is still uncertain, it’s likely to be substantial for many.

About 55% of Oregon state taxpayers received refunds last year, in contrast to 57% nationally.

How to Track Your Federal Returns and Refunds

After submitting your return, check the status of your refund on the IRS’s “Where is my refund?” page. Typically, this information is available about 24 hours after you file electronically or four weeks if mailed.

Access Your IRS Account Information Online

Creating an IRS Personal Online Account allows you to view your past refunds, outstanding balances, adjusted gross income, and more. It only takes about ten minutes, with a photo ID needed.

Important: IRS Will Not Issue Paper Checks

Be sure to provide your bank’s routing number for the IRS to process your refund. The agency has announced it will discontinue paper checks this tax season, making direct deposit the preferred option.

By providing your bank’s details, you can expect a faster refund, whether state or federal.

Oregon Taxpayers Can File State Returns Starting Monday

Oregon follows the IRS timeline for tax season, allowing state taxpayers to file starting Monday through April 15, unless they choose to extend.

On the other hand, Washington state lacks a state income tax, so residents there don’t need to file a return unless subjected to the capital gains tax, which was enacted in 2021.

How Long to Expect an Oregon Refund?

Filing electronically can significantly speed up your Oregon refund, potentially by two months.