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IRS Urges Early Prep for 2026 Taxes as Paper Refunds End and Start Date Remains Unset

Early preparation helps taxpayers navigate new rules to avoid delays with direct deposit refunds.

Overview

  • The IRS has not announced when it will open the 2026 filing season, and taxpayers cannot submit returns until the agency sets the date.
  • New provisions for 2025 returns include tax‑free tips up to $25,000 with income phaseouts, an overtime deduction up to $12,500 ($25,000 for joint filers), auto‑loan interest deductions up to $10,000 with income limits, a $6,000 deduction per eligible taxpayer age 65+, and a $2,200 Child Tax Credit.
  • Paper refund checks are being phased out under a presidential order, so filers should provide bank information for direct deposit or open an account to avoid delays.
  • Income from gig work, payment apps and online sales is taxable, with 1099‑K forms commonly issued by card processors for any amount and by marketplaces at $20,000 and 200 transactions, and taxpayers must report income and digital‑asset transactions even if no form arrives.
  • A pilot for new Trump Accounts offers a $1,000 government contribution for eligible children born from 2025 through 2028, with annual contributions up to $5,000 and employer contributions excluded from taxable income up to $2,500.