Update on 2026 Income Tax Filing

The 2026 tax filing season is officially open. The IRS began processing returns on January 26 and expects approximately 164 million filings by the April 15 deadline.

This season brings the most significant tax law changes in years, largely driven by the One Big Beautiful Bill Act signed into law on July 4, 2025 — with many provisions retroactive to January 1, 2025, meaning they apply to the returns being filed right now.

Here are the biggest changes and the dates that matter most.

Major changes for this filing season:

  • No tax on tips or overtime: Qualified tip income and certain overtime pay are now exempt from federal income tax for eligible workers
  • Standard deduction increases: $15,750 for single filers, $31,500 for married filing jointly, $23,625 for heads of household — all up from 2024
  • SALT cap raised to $40,000: Up from the $10,000 cap that had been in place since 2018
  • Child Tax Credit up to $2,200 per child: Increased from prior amounts
  • $6,000 senior deduction: New additional deduction for taxpayers 65 and older (phases out at $75,000 MAGI single / $150,000 joint)
  • Car loan interest deduction: Up to $10,000 deductible on loans for new, U.S.-assembled vehicles
  • 1099-K threshold reverts to $20,000 / 200 transactions: The planned lower thresholds ($5,000, $2,500, $600) have been scrapped
  • IRS Direct File discontinued: The free government filing tool is no longer available — taxpayers will need to use IRS Free File, commercial software, or a tax professional
  • Paper refund checks phased out: Direct deposit is now the standard for receiving refunds

Key dates:

  • January 26: IRS begins processing 2025 tax returns
  • January 31: Deadline for employers to send W-2s and certain 1099s
  • March 2: Expected date most EITC and Child Tax Credit refunds will be available via direct deposit
  • April 1: RMD deadline for those who turned 73 in 2025
  • April 15: Tax filing deadline, extension request deadline, and payment deadline for taxes owed
  • October 15: Deadline for extension filers
  • December 31: Several tax credits and provisions expire, including certain EV credits, home energy credits, and Premium Tax Credit enhancements