The US Internal Revenue Service (IRS) has confirmed that the 2026 tax filing season will open on 26 January. This year brings several important changes that may affect refunds, deductions, and how some income is taxed.
What’s New This Tax Season
Several tax law changes passed in 2025 are now in effect. The updates could affect millions of taxpayers, even those whose jobs or income have not changed.
Major changes include:
- New rules on tips and overtime pay for qualifying workers
- Changes to free tax filing options
- New and revised deductions
- Updated mileage rates
Tips and Overtime Pay
Some workers may now qualify for partial federal income tax relief on tips and overtime pay. However, this does not apply to everyone.
- Eligibility depends on income limits and job type
- Payroll taxes may still apply
- Workers should review guidance carefully before filing
Free Filing Becomes More Limited
The IRS has ended its Direct File program for 2026, removing a government‑run option that allowed some taxpayers to file for free.
Free filing is still available through:
- IRS‑approved Free File partners
- State‑run filing programs
- Nonprofit tax assistance services
Taxpayers may need extra time to find and choose the right option.
New and Updated Deductions
The IRS has released guidance on a temporary deduction for car loan interest.
Key conditions include:
- The vehicle must meet qualifying standards
- The loan must be mainly for personal use
- The benefit phases out at higher income levels
The deduction is limited and does not apply to all taxpayers.
Mileage Rates for 2026
The IRS has also announced updated standard mileage rates:
- Business use: 72.5 cents per mile (highest on record)
- Medical and eligible moving: 20.5 cents per mile
- Charitable use: 14 cents per mile (unchanged)
These rates apply to gas, hybrid, and electric vehicles.
When to Expect Refunds
Most taxpayers who are owed a refund will receive it within 10 to 21 days after the IRS accepts their return.
Possible delays may apply if you claim:
- Earned Income Tax Credit (EITC)
- Additional Child Tax Credit (ACTC)
In these cases, refunds usually arrive in late February or early March.
Filing Tips
The IRS says it expects refunds to be processed on a normal schedule this year.
To avoid delays:
- File early
- Use direct deposit
- Check status using “Where’s My Refund?”
