What You Need to Know Before Tax Season Starts in 2026

The 2026 tax season starts on Monday, January 26. This year, millions of Americans will notice big changes when they file their taxes due to a major tax reform that took place last year.

These changes will affect how people report their earnings, how they get their tax refunds, and the way they prepare their tax returns.

The IRS expects to receive about 164 million individual tax returns before the April 15 deadline, which is about the same as past years.

However, the way taxes are filed and processed will be very different, thanks to a new law called the One Big Beautiful Bill Act. This law has made the whole tax filing system more digital, automated, and thorough when it comes to tracking income.
 

Key Changes for Taxpayers

1. Refunds Going Digital

The IRS is moving away from sending paper checks for tax refunds. Now, the main way to get your refund will be through direct deposit into your bank account.

Paper checks are still possible, but the IRS strongly suggests using direct deposit because it is faster and more dependable. If you usually get a check in the mail, you might need to plan ahead to switch to a bank account.

2. More Digital Reporting for Income

The IRS is collecting more types of income details, especially for people who work outside of regular jobs (like freelancers or gig workers).

There are new and updated tax forms for 2026:
 

• Form 1099-K: Now covers more third-party payments, including money made through online platforms, apps, or gig work.
• Form 1099-DA: A brand-new form for reporting digital assets. If you have cryptocurrency or similar assets, transactions will now be reported to the IRS, and you’ll need to include these on your taxes.

3. New Ways to Claim Deductions

A new form, Schedule 1-A, has been created for special tax benefits introduced by the new law.

You can now claim things like:
 

• Exclusions for certain tip income
• Relief for overtime pay
• Deductions for qualified car loan interest
• Bigger benefits for older taxpayers

While these options may lower your tax bill, they also make tax filing a bit more complicated—especially if you have income from different sources.
 

Help and Support from the IRS

Because there are so many changes, the IRS is focusing more on helping and educating taxpayers. Some free support programs you can use include:

 

• Volunteer Income Tax Assistance (VITA)
• Tax Counseling for Seniors
• MilTax for military members and veterans

The IRS is also giving more advice on how to pick a trustworthy tax preparer and avoid scams.

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