Looking at the Tax Season Ahead

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tax season jan 26

Tax season 2026

Looking at the Tax Season Ahead

While every tax season has its challenges, 2026 seems to have a few extra layers of trickiness. There have been some major legislative changes, the IRS workforce disruptions and departures and a 43-day government shutdown come to mind. The IRS has announced that the filing season will begin on January 26, 2026, and we are ready.

The IRS expects 164 million individual tax returns to be filed by April 15. They predict that they will have 9 out of 10 refunds in less than 21 days and with changes under the One Big Beautiful Bill Act-many taxpayers will expect a refund this season.

To offset the challenges, the IRS’s Zero Paper Initiative aims to digitize 78% of all paper-filed returns to compensate for staffing reductions. They are using AI and analytics to spot discrepancies-so be sure the numbers on the return match the ones on the 1099s exactly.

Changes to be aware of for 2026:

  • Qualified tips are not taxed starting with the tax year that begins Dec. 31, 2024.
  • There is a new deduction for certain taxpayers aged 65 and older of up to $6,000 (single) or $12,000 (married) starting in 2025.
  • There is now a car loan interest deduction effective for 2025 through 2028, where eligible individuals may be able to deduct up to $10,000 annually.
  • Parents of eligible children can sign up for Trump Accounts.
  • And many more updates!

For this to be a successful tax season, it is our job to educate our clients to gather records early, educate clients about the new updates, prioritize electronic processes with more thorough tax organizers with expanded data points needed for the new and revised credits. The IRS encourages you to located a trusted tax professional and we are here to help.