Tax season 2026—when you file your 2025 tax return—is shaping up to be one of the most unusual and opportunity-rich seasons in years. With major changes in tax law and IRS processes, knowing what’s ahead can help you maximize refunds, minimize surprises, and plan proactively.

Filing early lets you lock in benefits and avoid last-minute stress. Tax pros expect millions of returns and a possible strain on IRS services due to staffing changes, so early preparation is crucial.

**Key Dates**

**IRS filing opens:** **January 26, 2026**
**Deadline to file and pay:** **April 15, 2026**
Extensions push deadlines to **October 15, 2026**.

💰 Major Tax Law Changes Affecting 2025 Returns

1. New Deductions and Credits
The One, Big, Beautiful Bill (OBBB) passed in mid-2025 brings important new provisions:

💡 Expanded Standard Deductions & SALT

Standard deduction amounts increased for 2025.
The state and local tax (SALT) deduction cap rises dramatically to $40,000, up from the old $10,000 limit—boosting deductions for many itemizers.

👴 Enhanced Senior Benefits

Taxpayers age 65+ can claim an additional $6,000 deduction on top of the standard deduction—up to $12,000 for qualifying couples.

👶 Child Tax Credit Changes

The Child Tax Credit increases to $2,200 per child and retains inflation indexing—but with tighter eligibility rules (all parties must have valid SSNs).

🎉 Deductions for Overtime, Tips & Car Interest

Several new deductions reduce taxable income for:

Qualified overtime pay,
Tip income from jobs that regularly receive tips,
Auto loan interest (up to $10,000).
These are temporary through 2028 and subject to income phase-outs.

🧾 IRS Filing System Changes

📥 Paper Refunds Are Going Away

For tax year 2025 returns filed in 2026, paper refund checks are being phased out. The IRS now requires bank account info for direct deposit refunds and electronic payments.

📊 Withholding Tables Remain the Same

Although tax law changed mid-year, the IRS did not update federal income tax withholding tables for 2025. That means taxes withheld from your paychecks might not reflect all new deductions automatically.

🛠 Practical Planning Tips

🔁 Estimated and Withholding Taxes

If you made quarterly estimated tax payments or adjusted your withholding, double-check your totals—new deductions and credits can change your liability significantly. IRS guidance confirms you must pay at least 90% of this year’s tax or 100% of last year’s to avoid penalties.

🗂 File Early for Maximum Refund Speed

Using direct deposit and e-filing generally results in refunds within about 21 days.

📉 IRS Staffing & Processing Risks

The IRS has undergone staff reductions in recent years, which can affect customer service and processing speed—especially under heavy filing volume and changing law. Planning ahead and avoiding last-minute filings reduces stress and delays.

🔍 Bottom Line

The 2025 tax season (filed in 2026) is uniquely shaped by new legislation and procedural shifts.
If you want to:

✔ Maximize deductions and credits
✔ Avoid penalties on estimated payments
✔ Ensure refunds arrive quickly
✔ Stay ahead of IRS processing challenges

…it pays to prepare early, organize your records now, and consult a tax professional for strategy tailored to your situation.

2025 Tax Season: What to Expect and How to Prepare