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WASHINGTON, D.C.— The Internal Revenue Serviceis introducing one of the largest tax-season changes in recent years as the 2026 filing period begins later this month, featuring new deductions, digital reporting requirements, and a significant move away from paper refund checks.
The IRS has stated that the country’s 2026 tax season will officially start on Monday, January 26, providing taxpayers with just over two months to get ready for their 2025 federal tax filings before the April 15 deadline. The agency anticipates receiving approximately 164 million individual tax returns, with the majority of Americans submitting their taxes online.
At the core of this year’s modifications is the One, Big, Beautiful Bill, a comprehensive tax law enacted in July 2025 that introduces multiple new deductions aimed at returning more money to taxpayers. Starting this year, individuals will utilize a new Schedule 1-A to claim deductions including “no tax on tips,””no tax on overtime,””no tax on car loan interest,” and an increased deduction for seniors.
“These clauses may have a major impact on federal taxes, credits, and deductions,” the IRS stated, encouraging taxpayers to examine the modifications now before the filing period intensifies.
The IRS is also encouraging taxpayers to set up or sign in to their IRS Individual Online Account, offering round-the-clock access to balances, payments, tax documents, and secure interaction with the agency. Authorities state that online accounts have become a fundamental part of quicker refunds and enhanced identity security.
A significant change is also happening in the way refunds are issued. With President Trump’s executive order titled “Modernizing Payments To and From America’s Bank Account,” the IRS is gradually eliminating paper refund checks. Taxpayers are being urged to set up a bank account and opt for direct deposit to get their refunds quicker and safer.
Families will also have access to a new way to save for their children’s future. Parents and caregivers can now establish Trump Accounts, a retirement-focused savings option for kids under 18 who have a valid Social Security number. As part of a trial initiative, U.S. citizens who were born between January 1, 2025, and December 31, 2028, will get a $1,000 contribution. More information can be found at trumpaccounts.gov.
This year, digital earnings are facing increased attention. All income generated from gig economy jobs, mobile payment services, and online transactions is still subject to taxation, and payment platforms will provide Form 1099-K if a person’s activities surpass $20,000 in transactions and involve 200 or more payments throughout the year. Virtual currencies, stablecoins, and non-fungible tokens also need to be declared, with certain taxpayers getting the newly introduced Form 1099-DA from their financial institutions.
The Treasury and the IRS also issued proposed regulations stating that third-party payment platforms are not obligated to conduct backup withholding unless they meet the $20,000 and 200-transaction limits. Officials emphasized that although reporting thresholds have been updated, all income is still subject to taxation.
“President Trump is dedicated to the taxpayers of this nation and aims to build on the effective tax filing season of 2025,” stated Acting IRS Commissioner Scott Bessent, referring to the new legislation as a positive development for both working families and businesses. IRS Chief Executive Officer Frank Bisignano mentioned that the agency’s systems have been completely updated to manage the new regulations.
Individuals can monitor their tax refunds using the “Where’s My Refund?” feature on IRS.gov, which usually updates within 24 hours following an electronic submission. The IRS is also advising taxpayers to remain cautious of fraudulent activities and identity theft, providing online resources for protection and resolution.
Additional free filing choices are becoming available. The IRS Free File service will begin on January 9 for those who qualify, and Free File Fillable Forms will be accessible from January 26 for all income levels. Active-duty military personnel and certain veterans can utilize the Defense Department’s MilTax program, while IRS-approved volunteers will offer free assistance through the Volunteer Income Tax Assistance and Tax Counseling for the Elderly initiatives.
With fresh deductions, updated digital guidelines, and innovative savings methods, the IRS is advising taxpayers to prepare early — as this tax season is expected to be significantly different from previous ones.