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IRS Announces 2026 Tax Season Changes and New Deductions

1/22/2026

28 3 Full Breakdown

Summary

Story summary

The Internal Revenue Service (IRS) will begin the 2026 tax filing season on January 26, 2026, with a deadline of April 15, 2026.
New provisions from the One, Big, Beautiful Bill include deductions for tips, overtime, and car loan interest.
Taxpayers must use the new Schedule 1-A to claim these deductions.
Refunds will be issued electronically, with paper checks phased out.
Refunds may be adjusted by about $400 after verification.

History

Historical Context

The Tax Reform Act of 1986, signed by President Ronald Reagan on October 22, aimed to simplify the U.S. tax code by lowering the top tax rate from 50% to 28% and expanding the earned income tax credit. This bipartisan effort, supported by Democratic Speaker Tip O'Neill, removed six million low-income Americans from the tax base, significantly reshaping tax policy and administration for future generations.

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Story summary

The Internal Revenue Service (IRS) will begin the 2026 tax filing season on January 26, 2026, with a deadline of April 15, 2026.
New provisions from the One, Big, Beautiful Bill include deductions for tips, overtime, and car loan interest.
Taxpayers must use the new Schedule 1-A to claim these deductions.
Refunds will be issued electronically, with paper checks phased out.
Refunds may be adjusted by about $400 after verification.

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