The Internal Revenue Service has officially announced that the 2026 tax filing season will begin on Monday, January 26. This marks the first day the agency will accept and process individual income tax returns for the 2025 tax year. With the season running through April 15, millions of Americans are preparing to file early to take advantage of significant new tax breaks. Financial experts suggest that many households could see a much larger refund this year compared to previous cycles, with some estimates predicting an increase of $300 to $1,000 for the average filer.
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New Tax Laws and Bigger Refunds in 2026
The reason for the expected boost in refund checks is the One Big Beautiful Bill Act, which was signed into law last July. This legislation introduced several major changes to the tax code that are now going into effect. One of the most talked about updates is the complete removal of federal taxes on overtime pay for many hourly workers. Additionally, the standard deduction has been raised significantly, which lowers the amount of income you are taxed on right from the start. While these changes are designed to put more money back into the pockets of hardworking families, they also represent a shift in how the government handles annual revenue.
Key Deadlines and Dates to Remember
The 2026 tax calendar has several important dates that every taxpayer should track to avoid penalties. Filing early is often the best strategy for those expecting money back, as it puts you at the front of the line for processing.
- January 26: The IRS and states like Oregon begin accepting and processing all tax returns.
- January 31: This is the deadline for employers to send out W-2 forms and for businesses to issue 1099s.
- April 15: The final day to file your 2025 tax return or request an automatic extension.
- October 15: The deadline for those who requested an extension to submit their completed paperwork.
Strategic Steps for a Faster Refund
To ensure your money reaches you as quickly as possible, the IRS is emphasizing the use of digital tools. The agency has moved away from issuing paper checks for most taxpayers, making direct deposit the primary way to receive a refund. By setting up an IRS Individual Online Account, you can monitor your filing status and view your tax records in real time. If you find the new rules for overtime or senior deductions confusing, this is a good year to consult with a certified tax professional. They can help you navigate the new Schedule 1-A, which is used to claim the latest statutory deductions.
Changes to Free Filing Options
There has been a notable change in the free filing landscape for 2026. The federal government has eliminated the IRS Direct File program, which was a free online tool used by many in previous years. However, if your income is $84,000 or less, you can still access the IRS Free File program through private sector partners. In Oregon, the state level Direct File Oregon program remains active, allowing residents to file their state taxes for free even though the federal version has been discontinued.
Important Tax Year Data at a Glance
The following table highlights the standard deduction amounts and estimated refund changes for the current filing season.
| Filing Status | 2025 Standard Deduction | New Senior Deduction | Potential Refund Increase |
| Single Filer | $15,750 | Up to $6,000 | $300 to $500 |
| Married Filing Jointly | $31,500 | Up to $12,000 | $600 to $1,000 |
| Head of Household | $23,625 | N/A | Variable |
