01/18/2026
Hello everyone its that time of the year again:
Key updates and insights for the 2026 tax season:
Larger Refunds Expected: Because the OBBBA was passed after withholding tables were set, many taxpayers overpaid throughout 2025, resulting in projected, higher refunds.
New Tax Changes: The OBBBA includes deductions for tips and overtime, a 5% increase in the standard deduction, and special deductions for seniors.
IRS Preparations: The IRS began accepting returns on January 26, 2026, with a focus on electronic filing.
Online Account Access: The IRS urges taxpayers to access their online accounts to verify information and manage payments.
Paper Check Phase-Out: Due to Executive Order 14125, the IRS is phasing out paper refund checks, favoring direct deposit to bank accounts.
1099-K Threshold: A $20,000 threshold for third-party network transactions (payment a he pps) remains in place for 2025, but all income is still taxable.
While the season is expected to be generally smoother, some concerns exist regarding the capacity to process these new, complex, and sometimes last-minute changes.
