The Internal Revenue Service has announced that the 2026 tax filing season will officially begin on Monday, Jan. 26, giving taxpayers the green light to submit their 2025 individual income tax returns. The agency expects to process approximately 164 million returns during the upcoming season, with the vast majority filed electronically. Officials say new tax law provisions could lower tax liabilities for some filers and potentially increase refund amounts, while operational changes may alter how refunds are delivered.
Taxpayers will have until Wednesday, April 15, 2026, to file their returns and pay any taxes owed. The IRS continues to encourage electronic filing and direct deposit, noting that digital submissions remain the fastest and most reliable way to receive refunds and reduce processing delays.
Several significant tax law changes will take effect during the 2026 filing season following the enactment of a sweeping tax and spending package signed into law last summer. The legislation introduces adjustments that affect deductions, credits and exclusions across a wide range of taxpayers. According to the IRS, standard deductions will increase under the new law, as will adoption credits and the estate tax exclusion. Certain seniors may also qualify for a higher deduction based on age-related provisions included in the statute.
The legislation also eliminates federal taxes on tips, overtime pay and car loan interest, changes that could materially reduce taxable income for eligible workers. The Child Tax Credit has been increased modestly for the 2025 tax year to $2,200 per qualifying child, up from $2,000. At the same time, the law removes tax incentives tied to residential energy efficiency improvements and the purchase of electric vehicles, ending credits that had previously encouraged those investments.
Another notable addition is the introduction of so-called “Trump Accounts,” a new retirement savings option for individuals under the age of 18 who have a valid Social Security number. Parents, guardians or other authorized adults may open these accounts on behalf of eligible children. A pilot program provides a $1,000 initial contribution for children who are U.S. citizens born between the beginning of 2025 and the end of 2028.
Changes are also underway in how tax refunds are issued. The IRS has reiterated its plan to phase out paper refund checks, urging taxpayers to opt for direct deposit or other secure electronic payment methods. This shift follows an executive order issued in March 2025 and reflects an effort to streamline operations and reduce costs. During the previous filing season, more than 93 percent of individual refunds were delivered by direct deposit, while only a small fraction were sent by mail.
Refund timing remains largely unchanged for electronic filers. The IRS says most refunds are issued within 21 days when returns are filed electronically and direct deposit is selected. Paper filings and mailed refunds can take six weeks or longer, depending on processing volume and accuracy.
Despite preparations for the season, concerns remain about the agency’s capacity to handle the workload. Staffing levels at the IRS have declined significantly following layoffs and voluntary departures tied to government efficiency initiatives. The agency’s workforce has dropped by roughly a quarter compared with staffing levels at the end of the previous administration, according to a recent report to Congress. Taxpayer advocates have warned that the combination of reduced staffing and substantial tax law changes could create challenges during the 2026 filing season.
IRS leadership has acknowledged the staffing reductions but says systems and personnel are prepared to manage the transition. Agency officials state that information technology systems have been updated to reflect the new tax laws and are ready to process returns efficiently.
The average tax refund issued last season was $3,167, according to IRS data. Supporters of the new tax law have said the changes are expected to result in larger refunds for many taxpayers in 2026, though individual outcomes will vary based on income, filing status and eligibility for credits and deductions.
