Prepare to File in 2026: Key Updates and Essential Tips for the Upcoming Tax Season
With the 2026 tax filing season fast approaching, federal officials are encouraging taxpayers to take proactive steps now to ensure a smoother process when filing their 2025 federal income tax returns. According to announcement IR-2026-01, released on January 6, 2026, early preparation can significantly reduce stress, delays, and potential errors once tax season begins.
One of the most important actions taxpayers can take is to access or create an Individual Online Account with the Internal Revenue Service. Available 24/7, this secure digital tool allows users to view their tax records, make payments, manage communication preferences, and protect sensitive information. Having an online account in place also makes it easier to track refunds and respond quickly to IRS notices.
Another major update involves how tax refunds are issued. Due to a presidential executive order aimed at modernizing payments to and from federal agencies, the IRS is gradually eliminating paper refund checks. Taxpayers are strongly encouraged to use direct deposit, which is faster, safer, and more reliable. Those without a bank account may want to consider opening one now to avoid delays in receiving their refunds.
Taxpayers should also take time to review important 2025 tax law changes. Recent legislation, including provisions in the One, Big, Beautiful Bill, introduces new deductions and credits that could lower tax liability or increase refunds. Beginning in 2025, taxpayers claiming certain credits for other dependents must ensure that both they and their spouse, if filing jointly, have valid Social Security numbers or Individual Taxpayer Identification Numbers issued on or before the return’s due date, including extensions.
A notable addition to the tax landscape is the introduction of Trump Accounts, a new retirement savings option for children under the age of 18 who have a valid Social Security number. Under a pilot program, a $1,000 contribution will be available for eligible U.S. citizen children born between January 1, 2025, and December 31, 2028, offering families an early opportunity to build long-term savings.
The IRS also reminds taxpayers that all income is taxable, including earnings from gig work, payment apps, and online sales. Payment card companies will issue Form 1099-K for any amount, while payment apps and online marketplaces will issue the form when transactions exceed $20,000 and more than 200 payments in a year. In addition, taxpayers who buy, sell, or receive digital assets such as cryptocurrency, stablecoins, or NFTs must report those transactions and answer the digital asset question on Form 1040.
Taking time now to review tax law updates, organize financial documents, and use official online tools can help ensure a more efficient and less stressful tax filing experience in 2026.
