Tax season is approaching, and while it’s still early to file, the Internal Revenue Service (IRS) is encouraging taxpayers to begin their preparations. The agency has laid out several important tips to navigate the upcoming changes that may affect filing in 2026.
One significant update concerns the use of direct deposit for tax refunds. Following an order from former President Donald Trump, the Treasury Department will no longer issue paper checks for most transactions, including tax refunds. The IRS is advising taxpayers to ensure they have a bank account linked for direct deposits, as this is the most efficient way to receive payments. Although there are alternatives for those without bank accounts, the IRS strongly recommends the direct deposit option for convenience and speed.
Taxpayers are also urged to familiarize themselves with changes introduced under new tax laws enacted in the previous year, referred to as the One, Big, Beautiful Bill. These changes may affect eligibility for various credits and deductions depending on individual filing status. It is crucial for taxpayers to review these updates to ensure they can take full advantage of any potential benefits when it comes time to file.
Additionally, the IRS has highlighted the introduction of “Trump Accounts,” a new retirement savings option for minors. Designed for children under 18 years old who have been born after January 1, 2025, these accounts will start with an initial contribution of $1,000. The accounts aim to foster savings habits from an early age. Interested parties can find more information on how to set up these accounts through the official website.
Another critical point for many taxpayers is the requirement to report income generated from payment apps and online sales. Individuals who received digital payments through platforms like PayPal, Venmo, or CashApp for part-time work, gig jobs, or sales activities in 2025 must report this income on their taxes. The IRS reinforces that a 1099-K form will be provided for amounts exceeding $20,000 in transactions beyond 200 instances during the year.
Additionally, for those engaging in digital transactions, there are new reporting obligations concerning digital assets such as cryptocurrencies, stablecoins, and non-fungible tokens (NFTs). Taxpayers who bought, sold, or received any of these digital assets in 2025 will need to report their gains or losses on their tax returns, even if they do not receive a formal tax document from a broker. Further guidance is available on the IRS’s digital assets page.
While there has been no official announcement regarding the date the IRS will begin accepting tax returns for the 2026 filing season, it is poised to assist taxpayers in making informed decisions about their unique situations and ensure compliance with new regulations. Last year, tax returns were accepted starting on January 27, hinting that taxpayers may want to keep an eye on announcements leading up to the filing season.
