IRS announces opening of 2026 filing season

The Internal Revenue Service (IRS) has announced that the 2026 filing season will officially open on Monday, Jan. 26, 2026. This date marks the start of electronic filing for most individual tax returns for the 2025 tax year. As in prior years, the IRS will begin accepting and processing returns that day, including those filed electronically and by mail.

New tax law provisions take effect

The 2026 filing season reflects the first full year of implementation for several provisions under OBBBA. These changes may affect federal taxes, credits and deductions for both individuals and businesses.

While not every taxpayer will be impacted, tax professionals should review the new provisions carefully and assess how they apply to their client base. Of particular note is the new Schedule 1-A (Form 1040), Additional Deductions. Planning conversations early in the filing season can help manage expectations and identify opportunities or limitations under the new rules.

Gather Your Documents Early

One of the most critical steps in preparing for tax season is gathering all necessary documents early. This not only helps you stay organized but also ensures you don’t miss out on any deductions or credits. Here’s a checklist of essential documents to collect:

• W-2 Forms: These forms report your annual wages and the taxes withheld from your paycheck.

• 1099 Forms: If you are self-employed or have other sources of income, you will need these forms to report that income.

• Receipts for Deductions: Keep receipts for any deductible expenses, such as medical bills, charitable donations, and business expenses.

• Investment Statements: If you have investments, gather statements that show any capital gains or losses.

• Mortgage Interest Statements: If you own a home, you may be able to deduct mortgage interest.

  
  

The standard deduction amounts for 2025

Understanding the various deductions and credits available to you is crucial for maximizing your tax refund. Here are some common deductions and credits to consider:

Standard Deduction vs. Itemized Deductions

You can choose between taking the standard deduction or itemizing your deductions. The standard deduction is a fixed amount that reduces your taxable income. For the tax year 2025, the standard deduction amounts are:

• Single or Married Filing Separately: $15,750

• Married Filing Jointly or Qualifying Surviving Spouse: $31,500

• Head of Household: $23,625

  
  

If your itemized deductions exceed the standard deduction, it may be beneficial to itemize. Common itemized deductions include:

• Medical expenses exceeding 7.5% of your adjusted gross income (AGI)

• State and local taxes paid

• Mortgage interest

• Cash contributions are limited to 60% of AGI. Contributions of $250 or more require substantiation

  
  

Tax Credits

Tax credits directly reduce the amount of tax you owe, making them more valuable than deductions. Some popular tax credits include:

• Earned Income Tax Credit (EITC): Designed for low to moderate-income workers, this credit can significantly increase your refund.

• Child Tax Credit: If you have dependent children, you may qualify for this credit, which can provide up to $2,200 per child.

• Education Credits: The American Opportunity Credit and Lifetime Learning Credit can help offset the costs of higher education.