The official countdown to tax season has begun as the Internal Revenue Service prepares to open its doors for 2025 tax year filings. Millions of Americans are looking forward to a significant financial update this year. According to the latest federal announcements, the tax filing window will officially open on January 26, 2026. This date marks the first day the government will begin accepting and processing individual income tax returns.
One of the most talked about topics this year is the potential for larger refunds. Due to the implementation of the One Big Beautiful Bill Act, several new tax breaks have officially taken effect. Experts suggest that many taxpayers could see their refunds increase by anywhere from $300 to $1,000 compared to previous years. With the filing deadline set for April 15, 2026, staying informed about these changes is the best way to ensure you do not leave any money on the table.
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Major Changes to Tax Deductions and Credits
The new tax legislation has introduced several paths to a higher refund. For many, the most noticeable change is the increase in the standard deduction. For the 2025 tax year, the standard deduction has risen to $16,100 for single filers and $32,200 for married couples filing jointly. This higher floor means more of your income is protected from federal taxes from the very start.
Beyond the standard deduction, there are specific new exclusions that can lower your taxable income. For the first time, taxpayers may be eligible for deductions on overtime pay and tip income. There is also a new deduction for interest paid on car loans for vehicles assembled in the United States. Seniors aged 65 and older can also take advantage of an additional $6,000 deduction, though this benefit begins to phase out for those with higher incomes.
Why Paper Checks Are Fading Away
A major shift in how the government handles money is happening this year. Following the executive order titled Modernizing Payments To and From America’s Bank Account, the IRS is phasing out the use of paper tax refund checks. The goal is to make the system more secure, as paper checks are much more likely to be lost or stolen during delivery.
If you are expecting a refund, you should prepare to receive it through direct deposit. The IRS has stated that electronic transfers are the fastest way to get your money, with most digital refunds issued in less than 21 days. For those who do not have a traditional bank account, the agency is offering alternatives such as prepaid debit cards or digital wallets. It is important to have your banking or electronic payment information ready before you sit down to file.
Filing Options and the End of Federal Direct File
The way you file your taxes might look a little different this year. In late 2025, the federal government scuttled the IRS Direct File program, which was a free, government run online tool. This means taxpayers will need to look at other options for submitting their 2025 returns. While the federal Direct File is gone, the IRS Free File program remains available for those who meet certain income requirements, usually an adjusted gross income of $84,000 or less.
Interestingly, state level options are still thriving in some areas. For example, the Direct File Oregon program remains active for its third year. This allows residents of Oregon to file their state taxes for free through a secure interview based software. If you are unsure which software to use, the IRS recommends checking their website for a list of approved partners to avoid potential scams.
Essential Tips for a Smooth Filing Experience
To avoid delays and get your refund as quickly as possible, follow these key steps during the 2026 tax season:
- Create or update your IRS Individual Online Account to view your balance and tax records.
- Gather all necessary documents, including W2s, 1099s, and records for the new Schedule 1-A deductions.
- Verify your direct deposit information to avoid issues with the new paperless refund policy.
- Consider setting up a Trump Account if you have children, as these new tax advantaged accounts offer a $1,000 government contribution for eligible kids.
- Check your filing status early if you live in a disaster area, as you may be eligible for an extended deadline beyond April 15.
Important Tax Dates and Figures for 2026
The following table summarizes the key dates and standard deduction amounts you need to know for this year.
| Category | Date or Amount |
| First Day to File Taxes | January 26, 2026 |
| Final Filing Deadline | April 15, 2026 |
| Standard Deduction (Single) | $16,100 |
| Standard Deduction (Married Joint) | $32,200 |
| Extension Deadline | October 15, 2026 |
