IRS tax season is here — and new rules could affect refunds
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The Internal Revenue Service opens tax season Monday as sweeping tax changes kick in, reshaping how people file their returns — and what they may owe or get back.
Why it matters: New tax breaks could mean bigger refunds for millions of taxpayers — but major changes underway at the IRS raise the stakes this tax season.
When does tax season start?
The IRS begins accepting 2025 federal tax returns Monday, as new rules, forms and filing options take effect nationwide.
- The Jan. 26 start date is a day earlier than last year.
Tax deadline 2026: When are taxes due?
The big picture: The federal tax filing deadline is April 15 for most taxpayers to file their returns, pay any taxes owed or request an extension.
- The IRS projects about 164 million individual income tax returns this year. This is up from last year's IRS estimate of more than 140 million returns.
2026 tax season: What's changing
Zoom in: This is the first filing season reflecting changes from the One, Big, Beautiful Bill Act (OBBBA), signed into law last summer. Here are some of the biggest changes:
Senior tax deduction
Americans 65 and older who pay taxes on Social Security income can claim a new $6,000 federal deduction, available through the 2028 tax year.
- Married couples where both spouses qualify can deduct up to $12,000.
No tax on overtime, tips and car loan interest
Eligible workers can deduct qualified overtime pay, capped at $12,500 per return ($25,000 for joint filers), with the benefit phasing out at higher incomes.
- The law temporarily eliminates federal income taxes on tips, allowing tipped workers to deduct up to $25,000 a year, and interest paid on qualifying car loans.
- Taxpayers claiming new deductions for seniors, tips and overtime pay will use the new Schedule 1-A form when filing their 2025 returns.
Higher SALT deduction limits
The law temporarily raises the cap on the state and local tax (SALT) deduction, allowing some higher-income filers in high-tax states to deduct more on their federal returns.
Standard deduction 2026
The IRS revised the standard deductions for returns filed in 2026:
- $15,750 for single filers
- $31,500 for married couples filing jointly
- $23,625 for heads of household
How to file taxes 2026
State of play: Taxpayers have multiple ways to file their federal returns this year, but the Trump administration has ended the free Direct File program.
- IRS Free File opened Jan. 9 for eligible taxpayers with adjusted gross income of $89,000 or less, using guided software from private-sector partners.
- Free File Fillable Forms are available starting Monday for taxpayers, regardless of income, who are comfortable preparing their own returns.
- Paid tax software, professional preparers and IRS-certified volunteer programs also are available.
IRS Where's My Refund tool
Follow the money: Refund status information is generally available around 24 hours after e-filing a current-year return, or four weeks after filing a paper return, on the Where's My Refund? tool.
- You can also check your refund with the IRS2Go mobile app.
- The IRS says it processes most refunds in up to 21 days for e-filed returns, but six weeks or more for mailed returns.
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