The 2026 filing season is open. The IRS began accepting and processing 2025 federal tax returns on Monday, January 26, 2026, and the deadline to file and pay any tax due is Wednesday, April 15, 2026. The agency says it expects about 164 million individual returns for tax year 2025.
Two things make this season different from recent years. First, legislation enacted in 2025, which the IRS refers to as the One, Big, Beautiful Bill and more recently as the Working Families Tax Cuts, created several new deductions that apply to 2025 returns. Second, the federal government has largely stopped mailing paper refund checks. This article explains both, in plain terms, and points to the official pages that have the full detail.
The key dates
According to IRS announcements:
- January 9, 2026: IRS Free File opened for qualifying taxpayers, letting returns be prepared ahead of the official start.
- January 26, 2026: The filing season opened, and Free File Fillable Forms became available.
- March 2, 2026: The date by which the IRS expects most refunds that include the Earned Income Tax Credit or the Additional Child Tax Credit to reach bank accounts or debit cards, for people who chose direct deposit.
- April 15, 2026: The deadline to file 2025 returns and pay any tax owed.
The IRS also says refund status is generally available around 24 hours after e-filing a current-year return, or four weeks after mailing a paper return.
New deductions for 2025 returns
The 2025 law introduced four deductions that many people will hear about this season. The IRS says taxpayers claim them on a new form, Schedule 1-A. According to the IRS fact sheet, each one runs from 2025 through 2028, and each is available whether or not you itemize. Every deduction has its own conditions and an income level above which it begins to phase out.
No tax on tips
Workers in occupations that the IRS lists as customarily and regularly receiving tips can deduct qualified tips, up to $25,000 a year. Qualified tips are voluntary cash or charged tips received from customers or through tip sharing, and they must be reported on a Form W-2, Form 1099 or another specified statement. The deduction begins to phase out for modified adjusted gross income above $150,000, or $300,000 for joint filers.
No tax on overtime
People who receive overtime pay required under the Fair Labor Standards Act can deduct the portion that exceeds their regular rate of pay. The IRS gives the example of the "half" in "time-and-a-half." The maximum is $12,500 a year, or $25,000 for joint filers, with the same $150,000 and $300,000 phase-out thresholds.
No tax on car loan interest
Interest on a loan for a new vehicle bought for personal use can be deducted, up to $10,000 a year, if the loan was taken out after December 31, 2024 and is secured by the vehicle. The vehicle must have had its final assembly in the United States, and the IRS says the vehicle identification number (VIN) has to be included on the return. Used vehicles do not qualify. The phase-out starts above $100,000 of modified adjusted gross income, or $200,000 for joint filers.
Enhanced deduction for seniors
People who are 65 or older by the end of the tax year can claim an additional $6,000 deduction, or $12,000 for a married couple where both spouses qualify. This sits on top of the existing additional standard deduction for seniors. It begins to phase out above $75,000 of modified adjusted gross income, or $150,000 for joint filers.
For the tips, overtime and senior deductions, the IRS fact sheet says a valid Social Security number must be included on the return, and married couples must file jointly to claim them.
A higher standard deduction
The same legislation also set the 2025 standard deduction. The IRS lists these amounts:
- Married couples filing jointly: $31,500
- Single filers and married individuals filing separately: $15,750
- Heads of household: $23,625
The refund you are owed has not changed, but the way it reaches you has.
The end of the paper refund check
Executive Order 14247, "Modernizing Payments To and From America's Bank Account," signed on March 25, 2025, directed the federal government to move its payments to electronic methods. In August 2025, the Treasury Department announced that the government would phase out paper checks for most federal payments on September 30, 2025. Treasury Secretary Bessent said the change "will help reduce fraud and theft" and would remove delays in getting payments to people.
The IRS followed with its own announcement in September 2025: paper tax refund checks for individual taxpayers would be phased out beginning September 30, 2025. The IRS gave its reasons directly, saying paper checks "are over 16 times more likely to be lost, stolen, altered, or delayed than electronic payments," and that electronic refunds are faster, generally issued in less than 21 days for e-filed returns using direct deposit when there are no issues with the return.
What this means at filing time
In its filing-season announcement, the IRS says that most taxpayers must now provide their routing and account numbers to receive refunds by direct deposit. Its Q&A on the executive order explains what happens if that information is missing:
- The IRS sends a CP53E notice by mail asking for a response within 30 days.
- If there is no response and no other issue with the return, the refund is released as a paper check after six weeks.
The IRS says limited exceptions apply for situations such as hardship or legal requirements.
If you do not have a bank account
The IRS and Treasury both acknowledge that not everyone has a traditional bank account. The IRS says alternative electronic methods, including certain mobile apps and prepaid debit cards, will be available, and it points to the FDIC's GetBanked resource and MyCreditUnion.gov for people looking to open a free or low-cost account.
Paying the IRS
The change is mostly about money going out from the government. For now, the IRS says mailed payments to the IRS, including checks and money orders, are still accepted, though it intends to transition fully to electronic methods over time.
Where to check the details
Everything in this article comes from IRS and Treasury announcements, and the official pages carry the full eligibility rules, examples and any later updates. If you want to check how a new deduction applies to you, the IRS fact sheet on the Working Families Tax Cuts and the instructions for Schedule 1-A are the best places to start. And if you have not filed yet, having your bank's routing number and your account number to hand is now one of the simplest ways to avoid a delayed refund.