Tax Season 2026 Opens
Tax filers, start your engines, tax season officially opens on January 26th and this year, there are going to be a slew of changes that could impact you. Before getting into the new stuff, a reminder of evergreen tax tips.
Mind the Deadline: Taxpayers have until Wednesday, April 15, 2026, to file their 2025 tax returns and pay any tax due. The IRS recommends filing electronically and using direct deposit. That way, if you are due a refund, you should receive it within 21 days.
Be Patient: Even though the IRS is open and ready to receive returns, you will need to gather all of your income related documents, like W2s, 1099s, unemployment benefits received, dividends, pensions, annuities, or retirement plan distributions. Jumping the gun before you have all of your docs may cause a future headache with amending your return.
Get Help: Before you pay up for tax preparation services, see whether you can get assistance through one of the following government programs:
IRS Free File lets you file your federal taxes at no extra cost either through electronic fillable forms or through IRS partnerships with private tax preparation services. It’s open to taxpayers with Adjusted Gross Income (AGI) of $89,000 or less in 2025. If your AGI was above $89,000, you can use Free File Fillable Forms, the electronic version of paper forms.
The Volunteer Income Tax Assistance (VITA) program offers free basic tax return preparation to people who generally make $67,000 or less, persons with disabilities and limited English-speaking taxpayers who need assistance in preparing their own tax returns. Tax Counseling for the Elderly focuses on free tax help for individuals who are 60 years of age and older, specializing in questions about pensions and retirement-related issues unique to seniors.
The Dept of Defense has a program called MilTax, which offers free return preparation and electronic filing software for fed income tax returns and up to three state income tax returns for all military members, and some veterans, with no income limit.
Figure Out if You Are Claiming the Standard or Itemized Deduction: Once you have all of your tax documents and have tallied up your gross income, you are then entitled to reduce that number through a deduction, Standard or Itemized. About 90 percent of taxpayers claim the Standard Deduction, which for this filing season is $31,500 for married couples filing jointly (MFJ), $15,750 for single taxpayers (IND), and $23,625 for heads of households (HOH). The remaining 10 percent add up individual items and if the total of those items is more than the standard amount, they are able itemize their deductions.
Decide Whether to Engage a Pro or Go It on Your Own: It’s tough to find someone to help with your taxes in April, so now’s the time to figure out whether or not it is necessary. If you have a complicated financial life, consider paying up for a professional. For example, small business owners and those who are self-employed may want someone who is familiar with Schedule C and who will let you know when you should file a Form 1099 to report any payments you made to others. If you had a lot of investment activity, sold property, or have to file an estate tax return for a deceased family member, you may also want guidance. Check out the IRS website for tips on how to choose a tax professional.
NEW/ENHANCED Deductions: The IRS has flagged four new provisions for this tax season, that could enable both standard filers and itemizers to claim. More details and related instructions are available via form (Schedule 1-A) for the following:
Higher Deduction for Seniors: Those 65 and older will receive a temporary (2025-2028) bonus deduction of $6,000 per individual, which phases out at a rate of 6 percent of AGI over $150,000 for MFJ, or $75,000 for all other filers.
No Tax on Tips: A temporary deduction (2025-2028) for qualified tip income, available regardless of itemizing status, beginning in tax year 2025, capped at a $25,000, with a phase out for individuals with income greater than $150,000 ($300,000 for married taxpayers filing jointly (MFJ).
No Tax on Overtime: A temporary deduction (2025-2028) capped at $12,500 for individuals ($25,000 MFJ), phases out for individuals with income greater than $150,000 ($300,000 MFJ).
Deduction for Auto Loan Interest: There will be a temporary deduction (2025 through 2028) for qualified passenger vehicle loan interest, with a limit of the lower of: $10,000 per year, or 20 percent of the taxpayer’s AGI more than $100,000 ($200,000 MFJ), whichever is lower.
Pass the SALT: A reminder for those who own a home in a high tax state: the state and local tax (SALT) deduction cap will increase from $10,000 to $40,000, for taxpayers earning less than $500,000, until 2029 before reverting to the $10,000 cap permanently.
New Parent Bonus: If you had a baby last year, you are entitled to open a Trump Account, a new type of retirement account where the government deposits $1,000 in an account for every American child born between January 1, 2025 and December 31, 2028. Although these accounts will not officially launch until July, you can get a head start and enroll when you file your taxes with the newly created IRS Form 4547.
Gig/Side Hustle Update: The IRS underscores that income from part-time work, gig activities or sales of goods and services is generally taxable. If you earned $20,000 and had more than 200 transactions last year, card companies, apps, and online marketplaces will issue Form 1099-K. Even if you do not receive a form, you must report all income on your tax return. This includes payments for any goods you sell (including personal items such as clothing or furniture sold at a gain) or services you provide.
SCAM WARNING: Finally, the opening of tax filing season also means that the criminals will be on the prowl. The IRS announced that it has added “a new banner on the Online Account homepage that alerts taxpayers of potential scams and schemes, along with a link to their Digital Notices and Letters page to view correspondence sent to them from the IRS.” You can check out the basic scams here. The IRS has also flagged certain communications that should raise a red flag:
A tax transcript in the mail from the IRS that you didn’t order.
An Employer Identification Number that you didn’t request.
A Form W-2 from an unknown employer.
An unexpected notice or email from a tax preparation company that asks you to confirm access to an existing online account, disable an existing online account, or confirm a new online account.
A letter from the IRS, during a year you didn’t earn income or file a tax return, that says: You owe additional tax; a balance due offset a refund; or collection actions were taken.