Fri Jan 02 12:50:00 UTC 2026: News Article: 2026 Tax Season: Big Refunds and Big Changes Coming, Experts Warn

DETROIT, MI – Get ready for a potentially rewarding but complex tax season in 2026. Due to the “One Big Beautiful Bill Act” signed into law last year, many taxpayers could see larger federal income tax refunds, but navigating the new rules and potential delays will require careful preparation.

Signed into law on July 4th by President Trump, the “One Big Beautiful Bill Act” brings significant changes to tax rules that will impact 2025 returns, filed in 2026.

According to Kevin Hassett, Director of the White House National Economic Council, people are going to get massive refund checks. “The country will see the biggest refund cycle ever in the history of America.”

New tax breaks for overtime pay, tip income, car loan interest, and seniors (65 and older) could significantly boost refunds. However, claiming these deductions requires completing a new form, Schedule 1-A, which was only available in draft form online as of late December. Taxpayers need to ensure they have the final version before filing, as draft forms are not accepted by the IRS.

Taxpayers can claim tax breaks for tips, overtime, car loans and seniors even if they take the standard deduction and do not itemize deductions.

Garrett Watson, director of policy analysis at the nonpartisan Tax Foundation, said refunds are likely to be higher for some groups who qualify for new tax breaks, particularly since many taxpayers have not had any adjustments to tax withholding on their 2025 paychecks that would take the new deductions into account.

Another significant change is the IRS’s move away from paper refund checks. Most individual taxpayers will need to receive their refunds via direct deposit. Those without bank accounts are encouraged to explore options like prepaid debit cards or digital wallets. Limited exceptions will be available for those unable to utilize electronic methods.

The IRS has not yet announced the official start date for the 2026 tax season, typically revealed in January. Experts predict a possible slight delay due to job cuts, leadership turnover at the IRS and new act. In 2025, the IRS kicked off the tax season on Monday, Jan. 27, when the agency began accepting and processing federal income tax returns.

Given the agency’s recent challenges, which include staff reductions and leadership changes, taxpayers are advised to prepare for possible delays. Frank Bisignano, also the commissioner of the Social Security Administration, was named to a newly created position of CEO of the IRS in October. Bisignano will report directly to Treasury Secretary Scott Bessent, who serves as acting IRS commissioner.

Taxpayers are encouraged to gather their necessary documents early and familiarize themselves with the new rules. Filing electronically and opting for direct deposit are highly recommended for faster processing and refunds. Accurate account and routing numbers are vital to avoid delays.

“Tax season… is bound to be unlike any other we’ve seen in recent years,” warns Mark Steber, chief tax officer for Jackson Hewitt Tax Services. “It will not hurt to start brushing up on the rules and gathering the paperwork as early as you can. And really, get ready to pack your patience.”

For those without bank accounts, resources are available to assist in opening accounts at FDIC insured banks and credit unions. Veterans can explore options through the Veterans Benefits Banking Program.

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