IRS Announces First Days of 2026 Filing Season

As announced earlier this week, Tuesday January 13, will mark the first day that the IRS will accept business tax returns for 2025 and Monday January 26, will be the first day that the IRS will accept individual tax returns for 2025. Other 2025 forms, such as trust/estate and gift tax returns, will be available to e-file to the IRS on Sunday January 18.

As taxpayers prepare to file their 2025 individual income tax returns, this year’s filing season brings with it several notable developments, including the implementation of new tax law provisions under the One Big Beautiful Bill Act (OBBBA), expanded digital reporting requirements, and ongoing modernization efforts by the IRS. Collectively, these changes may have meaningful implications for taxpayers’ credits, deductions, reporting obligations, and refund processing.

The IRS anticipates receiving approximately 164 million individual income tax returns this year, with the majority expected to be filed electronically. Given both the volume of returns and the evolving tax landscape, the IRS is encouraging taxpayers to begin preparing now to help ensure a smooth and timely filing experience. Below are some of the points that the IRS has highlighted and emphasized for individuals with the announcement of the 2026 filing season date.

 

Transitions Away from Paper Refund Checks

As part of a broader federal initiative under the presidential executive order “Modernizing Payments to and From America’s Bank Account,” the IRS is continuing its efforts to phase out paper tax refund checks. Taxpayers are strongly encouraged to use direct deposit to receive any refunds, as it remains the fastest, safest, and most reliable method of payment. The IRS has stated that moving away from paper checks not only reduces processing delays but also lowers the risk of lost or stolen refunds.

OBBBA Effective for 2025

The 2026 filing season marks the first year that several provisions of the One Big Beautiful Bill Act (OBBBA) take effect for 2025 business and individual tax returns. These changes introduce new deductions and credits that may reduce tax liabilities or increase refunds for eligible taxpayers. As with any significant tax legislation, eligibility requirements and documentation standards are critical.

One important change affects the ability to claim certain credits for other dependents. Beginning with 2025 tax returns, taxpayers and their spouses, if filing jointly, must have valid Social Security numbers (SSNs) or Individual Taxpayer Identification Numbers (ITINs) that are issued on or before the due date of the return, including extensions. Taxpayers who obtain identification numbers after the filing deadline may find themselves ineligible for certain credits, underscoring the importance of addressing these matters well in advance of filing. New forms that will be available during the 2026 tax season for deductions include Schedule 1-A, which is a form that will be used to claim recently enacted tax deductions such as no tax on tips, no tax on overtime, no tax on car loan interest, and the enhanced deduction for seniors.

Introduction of Trump Accounts for Children

Another notable development under the new legislation is the introduction of Trump Accounts, a new retirement savings vehicle designed for children under the age of 18 who have a valid SSN. Parents, guardians, and other authorized individuals will be able to open and manage these accounts on behalf of eligible children.

As part of a pilot program, a $1,000 contribution will be available for children who are U.S. citizens born between January 1, 2025, and December 31, 2028. These accounts are intended to encourage early, long-term savings and may offer families a unique opportunity to begin retirement planning for children at a very young age. Families considering these accounts should evaluate how they fit into their broader financial and planning strategies.

Reporting Income from Payment Apps and Online Sales

The IRS continues to focus on compliance related to income earned through payment apps, online marketplaces, and gig economy activities. It is important for taxpayers to understand that all income is taxable, regardless of whether it is earned from full-time employment, part-time work, freelance services, or the sale of goods and services online.

For 2025, Form 1099-K, Payment Card and Third Party Network Transactions, will be issued by payment card companies for any amount, and by payment apps and online marketplaces when payments exceed $20,000 and more than 200 transactions occur during the year. Even if a taxpayer does not receive a Form 1099-K, they are still responsible for reporting all taxable income. Maintaining accurate records of income and related expenses throughout the year is essential to avoid underreporting and potential penalties.

Expanded Digital Asset Reporting Requirements

Digital assets remain an area of heightened IRS scrutiny. Taxpayers who bought, sold, exchanged, or received digital assets, including cryptocurrency, stablecoins, or non-fungible tokens (NFTs), must report these transactions on their federal income tax returns. Some taxpayers may receive Form 1099-DA from brokers reporting digital asset activity to include on their return.

All taxpayers must answer the digital asset question on Form 1040, and any related income, gains, or losses must be properly reported. This includes digital assets received as payment, mining rewards, staking income, or assets exchanged for goods or services.

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