The IRS will officially ensure the start of the 2026 tax filing season on Monday, January 26, 2026, and will start accepting and processing federal returns of the 2025 tax year. The date will mark the beginning of a transformative year among American taxpayers as the agency will commence with the provisions of the One Big Beautiful Bill Act (OBBBA) which will be sweeping. This bill was signed in 2025 and presents a sequence of new deductions and credits to offer relief to the workers, their families, and the seniors. The IRS is going to increase its use of digital-first strategy, which requires taxpayers to file electronically and use direct deposit to guarantee that refunds are sent within the standard 21-day timeframe, given that the agency has more than 164 million returns to process.
No Tips and Overtime Pay Tax
One of the most significant elements of the 2026 filing season is the release of Schedule 1-A, through which eligible workers can have a big new deduction on the basis of tips and overtime compensation. Workers with OBBBA are allowed to claim up to 25,000 dollars of qualified tips and up to 12,500 dollars (25,000 in the case of joint filers) of qualified overtime allowance on their federal taxable income. The change is specifically aimed at service industry and hourly workers, basically, rendering much of their additional work to be tax-free. In order to secure these benefits, taxpayers will need to submit certain documents, including final 2025 pay stubs that will help to confirm that they earned above their base hourly rates.
Increased Deduction on the elderly and car owners
There will also be new options that can be availed to the retirees and owners of vehicles to reduce their tax liability this year. Seniors aged 65 and above can claim a new deduction of $6,000 bonus (12,000 combined with married couples) and it is in addition to the normal inflation-adjusted bonus. Additionally, car loan interest deduction is available on the purchase of new cars assembled in the United States which are intended to be used as personal vehicles and this is the first deduction anyone has gotten in decades. This deduction is limited to 10,000 dollars and it must include the VIN of the vehicle and a year-end interest statement. These are provisions that are meant to assist the increasing cost of healthcare and transportation to the people with fixed income.
Trump Children Accounts are being launched
In mid-2026, Trump Accounts, a new kind of tax-favored IRA with children under 18 years old, will be launched by the IRS. Although the loans cannot be disbursed till July 4, 2026, parents may initiate the enrollment process during this tax season by submitting Form 4547. Children born between 2025 and 2028 can receive a seed contribution of one thousand dollars, which is paid by the government with the help of a federal pilot program. Families and employers are also allowed to contribute a maximum of $5,000 per child, but it will increase tax free until the child attains the age of 18. This program is billed as a means of spring-boarding long-term wealth creation to the next generation of Americans.
Electronic Refunds and Security through Mandate
Taxpayers must be ready to make a big procedural change, namely the gradual elimination of paper refunds. According to the latest executive orders the IRS is shifting towards being mandatory in electronic refunds in order to withhold fraud and administrative expenses. The filers will be required to give their bank routing and account numbers in order to receive their finances through direct deposit. Also to better represent transactions in digital assets such as cryptocurrency, the IRS has added Form 1099-DA. In order to secure identity theft, all of your multi-factor-authenticated my Social Security and IRS online accounts are protected and will not be compromised during the 2026 filing season.
2026 Tax Season Key Data
| Filing Event | Date / Limit |
| Official Start Date | Jan 26, 2026 |
| Filing Deadline | April 15, 2026 |
| Tip Deduction Limit | Up to $25,000 |
| Overtime Deduction | Up to $12,500 |
Frequently Asked Questions (FAQs)
1. What is the latest date that I can submit my 2026 taxes?
Although the IRS starts receiving returns on January 26, 2026, you can start IRS Free file on January 9 to fill in your return and have it withheld until that time.
2. Is there a possible way that I can receive the $1000 government contribution on behalf of my child?
No. Although the election forms can be filed in this tax season, Trump Accounts will not be funded and put in place until July 4, 2026.
3. Will my income limit my deduction of interest on my car loan?
Yes. The made-in-America car loan deduction is phased out among individual taxpayers with a modified adjusted gross income (MAGI) of over 100000 (200000 on joint filers).
Disclaimer
The information is to provide the information only, you may refer to the sources IRS.gov and Treasury.gov, which are officially made sources, our intention is to give the correct information to everybody using it.
