The 2025 tax year filing season has officially commenced, as the Internal Revenue Service (IRS) opened the tax filing for 2026 on Monday. The agency anticipates that approximately 164 million individual tax returns will be submitted before the deadline of April 15.
In a recent announcement, the IRS informed taxpayers of several new provisions that could potentially reduce tax liabilities and increase refund amounts. However, a significant change is being implemented regarding how refunds are issued.
In alignment with Executive Order 14247, the IRS has begun to phase out paper tax refund checks as of September 30, 2025. As a result, taxpayers will need to provide their routing and account numbers to receive their refunds through direct deposit into their bank accounts. The IRS emphasized that transitioning to direct deposit will expedite the refund process, with most refunds typically issued within 21 days of filing.
For taxpayers claiming the Earned Income Tax Credit and the Additional Child Tax Credit, funds are expected to be available in bank accounts or on debit cards by March 2, 2026, provided they selected direct deposit and there are no issues with their returns. Some individuals may receive their refunds even earlier, depending on their financial institutions.
The upcoming 2026 tax season will see the implementation of significant changes stemming from the Republicans’ “One Big Beautiful Bill Act,” a tax and spending package that was signed into law last summer. The IRS noted that this act will have a substantial impact on federal taxes, credits, and deductions.
Among the changes are increases in several standard tax deductions, including enhancements to adoption credits and a higher estate tax exclusion. Seniors may also benefit from an increased deduction. Notably, the new provisions have eliminated tax obligations on tips, overtime earnings, and interest from car loans.
Additionally, the Child Tax Credit for 2025 has been slightly increased to $2,200 per child, a rise from the previous $2,000, according to an analysis by H&R Block. However, the bill also removed opportunities for taxpayers to earn credits for energy-efficient home improvements or electric vehicle purchases.
Taxpayers are reminded that refunds for electronically filed returns with direct deposit options are typically issued within 21 days. On the other hand, those opting for non-electronic payments may experience delays, with refunds taking six weeks or more if sent by mail.
For tracking refund statuses, taxpayers can utilize several methods, including the IRS’s “Where’s My Refund?” tool, the IRS2Go mobile app, or by accessing their IRS Individual Online Account.
