The Internal Revenue Service on January 6, 2026, released guidance encouraging taxpayers to begin preparing now for the 2026 filing season, when they will submit their 2025 federal income tax returns. The agency highlighted key updates from recent legislation, online tools, and procedural shifts to help ensure accurate filing and timely refunds.
The release, IR-2026-01, advises visiting IRS.gov/Get Ready for checklists, updates, and no-cost filing options. Taxpayers can create or access an IRS Individual Online Account, available 24/7, to view account details, make payments, manage preferences, and safeguard information.
A significant change involves refund delivery. Due to the presidential executive order titled Modernizing Payments To and From America’s Bank Account, the IRS is phasing out paper tax refund checks. Taxpayers without a bank account are encouraged to open one to receive refunds via direct deposit, which offers faster and more secure processing.
Major tax law changes stem from the One, Big, Beautiful Bill, signed into law in July 2025. Provisions effective for the 2025 tax year include new deductions and credits that may lower tax liabilities or boost refunds. For certain dependent credits, the taxpayer and spouse (if filing jointly) must hold valid Social Security numbers or Individual Taxpayer Identification Numbers issued by the return due date, including extensions.
Digital assets remain a reporting focus. Taxpayers who bought, sold, or received cryptocurrency, stablecoins, non-fungible tokens, or other digital assets must report transactions. Some may receive Form 1099-DA from brokers, but all must answer the digital asset question on Form 1040 and report income, gains, or losses. Detailed guidance appears on the IRS Digital Assets page.
Income from gig work, part-time jobs, or online sales is fully taxable. Payment card companies issue Form 1099-K for any amount, while payment apps and online marketplaces report when payments exceed $20,000 and more than 200 transactions occur in the year, a threshold reinstated by the One, Big, Beautiful Bill.
A new savings option, Trump Accounts, allows parents, guardians, or authorized individuals to open retirement savings vehicles for children under 18 with valid Social Security numbers. A pilot program provides a $1,000 federal contribution for eligible U.S. citizen children born from January 1, 2025, to December 31, 2028. More details are available at trumpaccounts.gov.
The IRS filing season opens January 26, 2026, with returns due April 15, 2026. The agency expects about 164 million individual returns, most filed electronically. Early preparation, including gathering documents and reviewing changes, supports smoother filing.
The One, Big, Beautiful Bill introduces additional benefits like deductions for qualified tips, overtime pay, car loan interest, and an enhanced deduction for seniors, claimable via new Schedule 1-A. These aim to reduce taxable income for working Americans.
Taxpayers should organize records, wait for all forms, and use free resources like Volunteer Income Tax Assistance for eligible filers. The IRS emphasizes that all income must be reported, regardless of form receipt.
