The 2026 tax filing season officially opens today, January 26. Americans can begin submitting their tax returns to the Internal Revenue Service to receive a refund or, unfortunately, a bill.

This year, there’s great news for taxpayers: you’ll get to keep more of what you’ve earned.

The Working Families Tax Cuts (also known as the One Big, Beautiful Bill Act or OBBB), passed exclusively by conservatives in Congress and signed into law by President Trump on Independence Day 2025, delivered the largest tax cut in history to Americans.

Here are 10 ways the Working Families Tax Cuts will make for a ‘Big, Beautiful’ tax season:

  1. Record-breaking tax refunds. Due to paycheck withholding not being updated last year to reflect lower taxes, many could see bigger tax refunds when filing returns in 2026.
  2. Lower rates.
  3. Bigger Child Tax Credit. The CTC rises from $2,000 to $2,200 per child.
  4. Bigger standard deduction. Deductions rise to $15,750 for single filers, $31,500 for married couples filing jointly, and $23,625 for heads of household.
  5. No tax on Social Security. Americans 65 and older who pay taxes on Social Security income can claim a new $6,000 federal deduction (up to $12,000 for joint filers). 
  6. No tax on auto loan interest. Filers can deduct up to $10,000 for auto loan interest on assembled-in-U.S. new vehicles.
  7. No tax on tips. Tipped workers, such as waitstaff and gig workers, can deduct up to $25,000 of cash tips. This applies to workers earning up to $150,000 (single) / $300,000 (married) and phases out beyond that.
  8. No tax on overtime pay. Working harder is rewarded. Overtime workers can deduct up to $12,500 in qualified overtime pay ($25,000 for joint filers), with the benefit phasing out at higher incomes above $150,000 (single) / $300,000 (married).
  9. SALT cap lifted to $40,000. The state and local tax deduction filers take has been raised from $10,000 to $40,000, phasing out at a 30% rate for those making $500,000+.
  10. No “Venmo tax.” The 1099-K reporting requirement that President Biden and Democrats in Congress instituted to capture any transactions of $600 or more was repealed. Now, reporting of online transactions only kicks in after making $20,000 in sales through more than 200 transactions or more. A big headache for millions of regular people is avoided.

The IRS expects to receive about 164 million individual returns in 2026. Typically, 75% of Americans receive refunds each year, with the average refund in 2025 being $2,939, according to IRS data. Refunds could be as much as 30% more this year due to new provisions from the Working Families Tax Cuts (aka OBBB).

Some tax experts expect that the bevy of changes from the 2025 tax laws may create confusion or more complicated tax returns. They suggest taxpayers ensure they have all of their pertinent documentation in one place.

Here are answers to some common questions:

When can I file?

You can file as early as Monday, January 26, 2026.

When is the deadline to file taxes?

For most tax filers, the deadline to file their returns, pay any taxes owed, or request an extension is April 15.

How can I file taxes?

There are many options, including free ones such as the IRS Free File, which provides tax software for taxpayers who made $89,000 or less. 

There’s also the Volunteer Income Tax Assistance (VITA), which is offering free filing help from Tampa Bay experts.

Plenty of tax preparation software and services are available at no or low cost.

Will I get a paper refund check or direct deposit?

Via direct deposit, prepaid debit cards, or other digital wallets. Currently, nine out of ten tax filers receive their refunds electronically via direct deposit. Last September, the IRS began phasing out paper checks in an effort to make refund payments entirely electronic. It may still be possible to receive a paper check, but the delays for it will be very long.

Direct deposit reduces the amount of fraud and delivery errors that occur with paper checks. “Paper checks are over 16 times more likely to be lost, stolen, altered, or delayed than electronic payments,” the IRS said. “Direct deposit also avoids the possibility that a refund check could be returned to the IRS as undeliverable.”

Bottom Line

A little patience this tax season will be well worth the payoff of getting back more of the taxes we paid last year and keeping more of our hard-earned income going forward.