February 5, 2025

The Internal Revenue Service (IRS) will kick off tax season later this month as it begins accepting returns on January 26, 2026. This tax season may potentially change how millions of Americans file their taxes and what they owe due to the passage of the “One, Big, Beautiful Bill” (OBBB) last year in mid-2025. With this Act, the IRS has implemented a suite of changes that may affect taxpayers’ refund amounts, credits, and deductions compared with last year. 

This article outlines critical deadlines and explains the major tax law changes for the 2025-26 tax year.  

Key Tax Deadlines You Need to Know for 2026

  • January 15, 2026: Estimated tax payments for Q4 of 2025 must be submitted.
  • January 26, 2026: The IRS officially opens and begins accepting and processing 2025 income tax returns.
  • April 1, 2026: Deadline for taking the 2025 required minimum distribution (RMD) if you reached age 73 in 2025.
  • April 15, 2026: The standard deadline for filing individual returns, C-Corporation taxes, and making contributions to Individual Retirement Accounts (IRAs) and Health Savings Accounts (HSAs) for the 2025 tax year. This is also the deadline for first quarter estimated tax payments for 2026.
  • June 15, 2026: Deadline for second quarter estimated tax payments.
  • September 15, 2026: Third quarter estimated tax payments due for 2026.
  • October 15, 2026: Extended deadline to file your 2025 income tax return if you requested a tax extension.
  • December 31, 2026: Due date to take the 2026 required minimum distribution from your retirement plan if you are age 73 or older.
  • January 15, 2027: Fourth quarter estimated tax payments due for 2026.

Why Filing Early Matters

Filing early can help:

  • Lower the risk of tax-related identity theft.
  • Speed up refunds, especially when using direct deposit.
  • Avoid last-minute errors and documentation issues.
  • Give you more time to address notices or corrections if needed.

Major Tax Law Changes for the 2026 Tax Season

  1. Enhanced Deduction for Seniors
    Taxpayers age 65 or older may claim an additional flat deduction of $6,000 (single) or $12,000 (married filing jointly). This benefit is
    in addition to the existing Additional Standard Deduction for seniors.
    Note: The deduction phases out for MAGI above $75,000 ($150,000 for joint filers).
  2. No Tax on Tips
    Effective 2025 through 2028, employees and self-employed individuals can deduct qualified cash tips, up to $25,000, from their taxable
    income. This provision applies to occupations the IRS has identified as “customarily and regularly receiving tips.”This benefit begins to phase out for taxpayers with a Modified Adjusted Gross Income (MAGI) over $150,000 ($300,000 for joint filers).
  3. No Tax on Overtime
    Effective 2025 through 2028, individuals may deduct the portion of qualified overtime pay that exceeds their regular rate of pay. The
    maximum annual deduction is $12,500 ($25,000 for joint filers).
    This benefit begins to phase out for taxpayers with a Modified Adjusted Gross Income (MAGI) over $150,000 ($300,000 for joint filers).
  4. Deduction on Car Loan Interest
    Taxpayers can deduct up to $10,000 of interest paid on loans used to purchase a qualified vehicle for personal use. This benefit begins
    to phase out for taxpayers with a Modified Adjusted Gross Income (MAGI) over $100,000 ($200,000 for joint filers).
    Kindly be aware: The vehicle must be brand new, assembled in the U.S., have a gross vehicle weight rating under 14,000 pounds, and the loan must be taken out after December 31, 2024.
  5. Standard and Itemized Deduction Rule Changes
    • Boosted Standard Deduction:For 2025 returns, the standard deduction amounts have increased:
      • $31,500 for married couples filing jointly
      • $15,750 for single filers and married individuals filing separately
      • $23,625 for heads of household
    • SALT Cap Expansion:The cap on the State and Local Tax (SALT) deduction has been raised to $40,000 (from $10,000). Taxpayers may deduct up to $40,000 of state and local taxes on Schedule A, including either income or sales taxes (not both), plus real estate and personal property taxes.If married filing separately, the limit is $20,000. If adjusted gross income (AGI) exceeds $500,000 ($250,000 if married filing separately), the deduction is reduced by 30% of the excess, but not below $10,000 ($5,000 if married filing separately). Enter the smaller of your total taxes or the limit on Schedule A.
  6. Procedural Changes: Switch to Direct Deposit to Avoid Refund Delays
    The IRS is phasing out paper refund checks and strongly encourages taxpayers to e-file and select direct deposit. Paper refund checks may take four weeks or longer to arrive.
  7. Introduction of “Trump Accounts”
    This is a new type of tax-advantaged account for children under age 18. The federal government will make a one-time $1,000 contribution for each eligible child’s account to help kickstart long-term wealth building.

Preparing for the 2026 Tax Season with Confidence

The 2026 tax season marks a meaningful shift for many taxpayers, driven by the implementation of the One, Big, Beautiful Bill. With new deductions, more benefits, and updated filing rules, it’s important to know what’s different so you can avoid surprises and get the most tax savings. 

With so many new rules about deductions, eligibility, and reporting, some people may want to get advice from a tax professional. If you keep track of deadlines and prepare early, you’ll be better equipped to handle the 2026 tax season with confidence and control. 

Navigating the 2026 tax season does not have to feel overwhelming. With new rules, expanded benefits, and important deadlines to manage, having the right guidance can make all the difference. Rubino’s tax professionals are here to help you understand what has changed, identify opportunities, and prepare your return accurately so you can file with confidence and without worry. Connect with our team to get started. 

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