The Internal Revenue Service (IRS) has issued comprehensive guidance for the upcoming 2026 tax filing season, which pertains to 2025 federal income tax returns. The filing season is scheduled to officially commence on January 26, 2026, with the deadline for filing returns and submitting any tax due set for April 15, 2026. The IRS projects receiving approximately 164 million individual income tax returns, with most expected to be filed electronically. This guidance covers new tax law provisions, essential preparatory steps for taxpayers, and various assistance resources available.
New Tax Law Provisions
Several new tax law provisions are effective for the 2026 filing season, potentially impacting federal taxes, credits, and deductions. These provisions largely stem from the "One, Big, Beautiful Bill (OBBB)" enacted by Congress in July 2025.
- New Deductions: Taxpayers can claim new deductions by utilizing the new Schedule 1-A. These provisions include no tax on tips, no tax on overtime earnings, no tax on car loan interest, and an enhanced deduction for seniors.
- Other Dependent Credits: Effective for 2025, eligibility for certain credits for other dependents requires that the taxpayer and their spouse, if filing jointly, possess valid Social Security numbers (SSNs) or Individual Taxpayer Identification Numbers (ITINs) by the return's due date, including extensions.
- Retirement Accounts for Children: A new type of retirement savings vehicle has been established for children under 18 who hold a valid SSN. Identified as "Trump Accounts" by one source, a pilot program offers a $1,000 contribution for U.S. citizen children born between January 1, 2025, and December 31, 2028. Further information is available at trumpaccounts.gov. These accounts can be established by parents, guardians, or other authorized individuals.
Reporting Income from Payment Apps, Online Sales, and Digital Assets
Taxpayers are reminded that all income derived from part-time work, gig economy activities, or the sale of goods and services is subject to federal taxation.
- Form 1099-K: Payment card companies will issue Form 1099-K for any amount. Payment apps and online marketplaces will issue Form 1099-K when payments exceed $20,000 and involve over 200 transactions annually.
- Digital Assets: Transactions involving digital assets, including the buying, selling, or receiving of cryptocurrencies, stablecoins, or NFTs, must be reported. While some taxpayers may receive Form 1099-DA from brokers, all taxpayers are required to address the digital asset question on Form 1040 and report any associated income, gains, or losses. Additional information is accessible in the Digital Assets section of IRS.gov. All taxable income must be reported on federal tax returns, irrespective of whether a specific form is received.
Key Preparatory Steps and IRS Resources
The IRS encourages taxpayers to take proactive steps to ensure an efficient filing experience. Resources are available at IRS.gov/GetReady and IRS.gov.
- IRS Individual Online Account: This platform offers 24/7 access for taxpayers to view account information, make or schedule payments, manage communication preferences, and safeguard tax data. It also allows users to check their balance due and access tax records.
- Direct Deposit for Refunds: In alignment with a presidential executive order aimed at modernizing payment processes, the IRS is transitioning away from paper tax refund checks. Taxpayers without existing bank accounts are advised to open one to facilitate direct deposit of refunds.
- Refund Status: Information regarding refund status is generally available within 24 hours of e-filing or four weeks after filing a paper return via the "Where’s My Refund?" tool.
- Taxpayer Assistance:
- IRS.gov offers various online tools and resources, including IRS.gov/Help, the Interactive Tax Assistant (IRS.gov/ITA), and IRS.gov/Forms for forms, instructions, and publications such as Publication 17.
- Resources are available on IRS.gov to assist taxpayers in preventing, reporting, and recovering from tax scams and identity theft.
- Guidance is provided for selecting a reputable tax professional and avoiding unethical practices.
- For in-person assistance at Taxpayer Assistance Centers, appointments are required after first consulting IRS.gov for potential online resolution of issues.
Free Tax Preparation Services
Several programs offer free tax preparation and filing assistance for eligible taxpayers:
- IRS Free File: The program will begin accepting individual tax returns on January 9 for qualified taxpayers. IRS Free File Fillable Forms, available from January 26, can be utilized by any taxpayer comfortable preparing their own taxes, regardless of income.
- MilTax: Military members and eligible veterans can access the Department of Defense program, MilTax, which provides free return preparation and e-filing software.
- VITA and TCE Programs: The Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs offer no-cost, basic tax preparation services through IRS-certified volunteers to qualified individuals.