Overview
- The IRS has not announced when it will begin accepting 2025 returns, and tax experts say a slight delay from the usual late‑January kickoff is possible.
- Temporary provisions for 2025–2028 include deductions for tips up to $25,000 with income and occupation limits, overtime up to $12,500 ($25,000 for joint filers) with phaseouts and SSN requirements, car‑loan interest up to $10,000 on U.S.-assembled vehicles, and a $6,000 deduction for seniors with qualifying incomes.
- Claiming many of these benefits will require the new Schedule 1‑A, which appeared online only in draft form in late December and cannot be filed in draft.
- Most refunds will now be delivered by direct deposit after the phaseout of routine paper checks, and the IRS’ free Direct File option will not be offered for 2026.
- Higher standard deductions and updated withholding tables are in effect and could boost take‑home pay, as leadership turnover at the IRS raises concerns about processing hiccups.