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IRS Tells Taxpayers to Prepare Now as New Rules and Direct‑Deposit Refunds Roll Out

With no opening date yet, the agency spotlights new deductions, tighter reporting requirements and the end of paper refund checks.

Overview

  • IRS launches a Get Ready push urging early preparation for 2026 filings, noting the official start date has not been announced.
  • Refunds now require direct deposit after the phaseout of paper checks under a federal payments modernization order.
  • New provisions for 2025 returns include untaxed tips up to $25,000 with income phaseouts, a vehicle‑loan interest deduction up to $10,000 with income limits, and an extra $6,000 deduction per eligible filer aged 65 or older.
  • Media descriptions of the overtime relief differ, with reports citing either an hours‑based exemption or a capped deduction, so taxpayers should watch for final IRS forms and instructions.
  • Compliance reminders include taxable gig and marketplace income even without a 1099‑K, required digital‑asset disclosures on Form 1040, a Child Tax Credit set to $2,200 for 2025 with an SSN rule, and a pilot for children’s “Trump Accounts” that includes a $1,000 contribution for eligible births between 2025 and 2028.