IRS 2026 Tax Return Submission: Expect Increased Refunds

Bassyonni

ago 2 hours

The upcoming 2026 tax season is set to bring significant changes for taxpayers in the United States. With new deductions and refunds expected to increase, it’s crucial to stay informed on the developments ahead.

IRS 2026 Tax Return Submission: Expect Increased Refunds

The Internal Revenue Service (IRS) will officially begin accepting tax returns for the 2026 season on an anticipated date in early February 2026. This announcement typically comes in January. In 2025, the tax season commenced on January 27, leading to a record number of early filings.

Expected Changes and Refund Growth

Taxpayers can expect potentially larger refunds in 2026 due to new tax rules implemented for the 2025 returns. The average federal tax refund for 2025 reached $3,052, showing a steady increase compared to previous years.

The IRS processed over 102.1 million refunds by October 17, 2025.
Tax refund totals reached approximately $311.6 billion, up 0.6% from the previous year.
Estimates suggest that new tax breaks could elevate the average refund by $300 to $1,000.

New Tax Deductions and Requirements

For the 2026 tax season, several notable deductions are available, especially impacting specific income groups. Here are some key new provisions:

A deduction of up to $6,000 for individuals aged 65 and older, phasing out for incomes above $75,000.
Auto loan interest deduction of up to $10,000, subject to income limits.
Tip income deductions of up to $25,000, phased out for higher incomes.
Overtime income deductions of up to $12,500 for singles and $25,000 for joint filers.

Taxpayers will need to complete Schedule 1-A to claim these deductions effectively. This two-page form must be accessed and submitted correctly to receive eligible benefits.

Transition to Direct Deposit Only

Beginning in 2026, most taxpayers will not receive paper checks for their refunds. Instead, all refunds will be issued via direct deposit, a significant shift in IRS policy. Currently, only 7% of tax refund recipients receive checks by mail.

For those without bank accounts, options include prepaid debit cards or digital wallets. It’s essential for those who typically receive paper checks to provide their direct deposit information beforehand to avoid delays.

Potential Delays and Additional Considerations

Taxpayers should prepare for possible delays in processing their returns, though the IRS aims to issue most refunds within 21 days of filing, especially for electronic submissions. Returns that claim the earned income tax credit often face additional waiting periods.

Overall, the 2026 tax season promises to be intricate, with new deductions, direct deposit mandates, and the potential for larger refunds. Taxpayers should start preparing and ensuring all necessary documentation is readily available.