The wait for the upcoming tax season is almost over as the Internal Revenue Service prepares to open its doors for 2026. This year brings a host of new opportunities for taxpayers to keep more of their hard earned money thanks to significant legislative updates. Whether you are a salaried employee, a senior citizen, or someone working extra hours, the new rules for the 2025 tax year are designed to provide extra relief. The official start date has been set, and millions of Americans are getting ready to file their returns and claim the benefits they deserve.
Table of Contents
Major Tax Law Updates and the OBBB Act
One of the biggest stories of the current tax season is the implementation of the One Big Beautiful Bill Act. Signed into law last year, this sweeping package introduces fresh ways for families to reduce their tax liability. A standout feature of this law is the new federal income tax deduction for qualified overtime pay. For many hourly workers, this means that a portion of the extra money earned for working beyond forty hours a week is now exempt from federal income tax.
In addition to overtime relief, the act has significantly increased the standard deduction. This change lowers the base amount of income that the government can tax, which often results in a higher refund for those who do not itemize. There are also new provisions like the deduction for seniors, which allows individuals aged 65 and older to claim an additional $6,000 deduction. These changes are expected to increase the average refund amount for many households by hundreds of dollars.
Essential Deadlines for the 2026 Tax Season
Keeping track of the calendar is the best way to avoid late fees and ensure your refund is processed without delay. The IRS has provided a clear timeline for when forms are due and when the system officially begins accepting data.
- January 9: IRS Free File opens for qualified taxpayers to start preparing their returns.
- January 26: The official start of the 2026 tax season when the IRS begins processing all individual returns.
- January 31: The final deadline for employers to send out W-2 forms and for businesses to issue 1099 statements.
- April 15: Tax Day, the final deadline to file your 2025 return or request a six month extension.
- October 15: The final date to submit your tax return if you previously filed for an extension.
Important Changes to Free Filing Options
There is a notable change in how people can file for free this year. The federal government has decided to end the IRS Direct File pilot program that was available in previous cycles. However, this does not mean that free options have disappeared. The long standing IRS Free File program remains active through partnerships with private sector software companies.
If your adjusted gross income is $84,000 or less, you can still use these professional tools to file your federal taxes at no cost. For those who are comfortable with the forms and do not need a guided interview, the IRS also offers Free File Fillable Forms starting in late January. While the federal Direct File tool is gone, some states continue to offer their own free state level filing programs to residents.
How to Speed Up Your Refund Delivery
If you are looking to get your money as quickly as possible, the IRS recommends a digital first approach. Electronic filing combined with direct deposit remains the fastest and safest way to receive your funds. The agency is moving further away from paper checks, so having a valid bank account on file is more important than ever.
You can also use the IRS Individual Online Account to monitor your status. This secure portal allows you to see if your return has been accepted and provides updates on when your refund is scheduled to be deposited. For those claiming the new overtime or senior deductions, it is helpful to use the new Schedule 1-A to ensure every credit is accounted for correctly.
2026 Tax Season Quick Reference Table
| Filing Category | 2025 Standard Deduction | New Senior Deduction | Potential Refund Increase |
| Single Filers | $15,750 | $6,000 | $300 to $500 |
| Married Filing Jointly | $31,500 | $12,000 | $600 to $1,000 |
| Head of Household | $23,625 | N/A | Variable |
| Overtime Deduction | Up to $12,500 | N/A | Based on earnings |
