What’s New in the 2026 Tax Season

Tax season is officially open: the IRS began accepting and processing 2025 individual tax returns on January 26, 2026, and most taxpayers have until April 15, 2026 to file and pay any tax due.

This year is a little different than the “typical” tax season. In addition to the usual inflation adjustments (brackets, deductions, and thresholds), the IRS says several new tax-law provisions are now in effect—plus a handful of administrative changes that could affect how you file and how you receive a refund.

Below is a practical, plain-English rundown of what’s new, what to look for as forms arrive, and what to double-check before you hit “submit.”

 

1) Key Dates to Know & Why They Matter

Even if you’re the type who files early, deadlines and document timing still drive a lot of taxpayer stress. Here are the dates worth anchoring to:

• January 26, 2026: IRS begins accepting 2025 returns.
• April 15, 2026: Federal deadline to file and pay (unless you file for an extension).

If you make quarterly estimated tax payments, there’s also an important “catch-up” concept: the IRS notes that if you file your 2025 Form 1040/1040-SR by January 31, 2026 and pay what you owe, you may not need to make the January estimated payment that would otherwise be due. (This is a nuanced rule with exceptions and potential penalties for earlier quarters, but it’s good to be aware of.)

If you’re a business owner, have substantial investment income, or had a big income event in 2025 (sale of a business, RSUs vesting, large capital gains), deadline planning isn’t just a compliance task—it’s part of managing cash flow, penalties, and your broader financial plan.

 

2) New Tax-law Provisions Are Driving New Deductions (and a New Schedule)

The IRS explicitly calls out “several new tax law provisions” taking effect this season, connected to the One, Big, Beautiful Bill.

The most notable filing change: a new “Schedule 1-A” that taxpayers will use to claim “recently enacted” deductions, including (as described by the IRS):

• “no tax on tips”
• “no tax on overtime”
• “no tax on car loan interest”
• and “the enhanced deduction for seniors”

What to do now:

• If any of these apply to your household, expect your tax software or preparer to ask new questions and potentially request documentation.
• If you’re a W-2 employee, check that your W-2 and paystubs support whatever your filing method will claim.
• If you received overtime pay in 2025, make sure to retrieve and keep your year end pay stub in addition to your W-2.  The W-2 isn’t required to split overtime from other types of pay.
• If you’re self-employed or have gig income, tighten your recordkeeping—new deductions tend to attract errors (and sometimes audits) when documentation is thin.

When new deductions appear, people often assume “bigger refund.” That might happen—but it depends on your income level, how the deduction is structured, and how it interacts with credits and phaseouts. Consider this year a good one to review withholding/estimated payments so you don’t get surprised.

 

3) Inflation Adjustments: Bigger Standard Deductions and Shifted Brackets

While most people think of “tax changes” as new laws, the IRS also updates dozens of provisions annually for inflation. For tax year 2026 (returns filed in 2027) the IRS published updated bracket thresholds, the standard deduction, and more—and the same IRS release also spells out the 2025 standard deduction amounts “under OBBB” for the returns being filed right now.

From the IRS release (useful for context and planning conversations):

• Standard deduction for tax year 2025 under OBBB:
  • $31,500 (Married Filing Jointly)
  • $15,750 (Single / Married Filing Separately)
  • $23,625 (Head of Household)

Even if you’re filing for 2025 today, these inflation adjustments matter because they influence:

• whether you itemize vs. take the standard deduction,
• the marginal bracket that applies to the last dollars you earned,
• and the value of strategies like charitable giving or timing certain income events.

If you do itemize, “bunching” charitable donations into one year (or using a donor-advised fund) can still be a powerful tool—but the “better” approach depends on whether you itemize this year, your income, and your overall giving goals.

 

4) Digital Assets: New Form 1099-DA is on the IRS’s Radar

The IRS is directly flagging Forms 1099-K and 1099-DA as items taxpayers should understand this season. Specifically, the IRS notes:

• Form 1099-K reports certain payments received through cards, payment apps, and online marketplaces.
• Form 1099-DA (Digital Assets) is used to report digital asset proceeds from broker transactions.

Just as important, the IRS reiterates a point that surprises people every year: you must report all taxable income even if you don’t receive a form.

What to do now:

• If you transacted in crypto/digital assets in 2025, gather your exchange statements early.
• If you used multiple exchanges or wallets, expect reconciliation to take longer than you think—especially if cost basis data is incomplete.
• If you used payment apps for side work, reselling, or services, keep business and personal transactions separated as much as possible.

Digital asset reporting tends to create “mismatch notices” when taxpayer reporting doesn’t line up with what brokers report. Clean, consistent documentation reduces the odds of an unpleasant letter later.

 

 

5) Refunds Are Moving Away From Paper Checks

A practical change with real-world consequences: the IRS says it is phasing out paper tax refund checks and is “strongly encouraging” taxpayers to use direct deposit.

AP reports that in 2026, most taxpayers must provide routing and account numbers for direct deposit because paper checks are being phased out. And Investopedia reports that missing or incorrect bank information can cause a refund hold until corrected.

What to do now (simple but important):

• Double-check your routing/account numbers before filing.
• If you changed banks in 2025 (or use a new account for joint finances), confirm which account you want the refund to hit.
• If you don’t use direct deposit, be aware you may face extra steps and delays.

 

6) Expect “Normal” Refund Timing For Many Filers—But Plan For Bumps If You Need Help

In general, the IRS says refunds for e-filers are typically issued within 21 days or less, and direct deposit can be faster.

At the same time, the National Taxpayer Advocate is warning that the 2026 filing season could be challenging for taxpayers who run into problems, citing workforce reductions and the complexity of implementing significant new tax-law changes.

If your return is straightforward and you file electronically with direct deposit, you may never notice any friction. If your situation is more complex—or you anticipate needing IRS assistance—filing earlier (with complete documentation) can reduce the chance that you’re stuck waiting.

 

7) A Quick “What to Gather” Checklist For a Smoother 2026 Filing

Here’s a short list to reduce headaches, especially with new provisions in play:

Income documents

• W-2s, 1099-INT/DIV/B, K-1s (if applicable)
• 1099-K (payment apps/marketplaces), 1099-DA (digital assets), if you receive them

Deductions and Credits

• Records supporting any of the new deductions claimed on Schedule 1-A (tips/overtime/car loan interest/senior deduction), as applicable
• Charitable contribution receipts and acknowledgments
• Mortgage interest (Form 1098) and property taxes

Refund logistics

• Direct deposit routing/account numbers (and confirm the account is open and correct)

If you pay estimates

• Estimated tax payment history and a plan for cash flow (especially if income was irregular)

 

8) A Planning Lens: How to Turn “What’s New” Into Better Decisions

A lot of tax-season content focuses on compliance. At Three Oaks Wealth, we prefer to treat taxes as one piece of a bigger picture:

• Cash flow planning: New deductions can change withholding needs and “surprise” balances due.
• Investment coordination: Capital gains, tax-loss harvesting, and charitable giving strategies should complement your tax picture.
• Retirement planning: New accounts and deductions (like the IRS mentioning a “Trump Account” for children) may create additional planning opportunities depending on eligibility and your goals.

If you’re unsure how any of the changes apply to you, it’s often worth a quick conversation with your CPA—especially if you had major life or income changes in 2025.