The Internal Revenue Service opened the 2026 tax filing season this week, accepting and processing returns for the 2025 tax year. As a result of the One Big Beautiful Bill signed into law July 4 and its significant tax law changes, refunds are expected to increase for many Americans.
The IRS expects approximately 164 million returns to be filed ahead of the April 15 deadline. The IRS urges taxpayers to file electronically, an option that celebrates its 40th anniversary this year.
“Just as we did back in 1986, today the IRS encourages taxpayers to speed the processing of their returns by using e-file, instead of paper. And to speed the processing of any refund due, we also encourage the use of direct deposit,” said IRS Chief Executive Officer Frank J. Bisignano in a press release.
The IRS began phasing out paper tax refund checks Sept. 30, 2025. With direct deposit, most refunds are issued in less than 21 days, according to the IRS.
The tax changes for this year as part of the OBBB, include an increase of the standard deduction from $14,600 to $15,750 for single filers and $29,200 to $31,500 for married, filing jointly taxpayers. The child tax credit increased $200 to $2,200. The earned income tax credit was adjusted with taxpayers with incomes under $70,000 being eligible. Tipped employees can deduct up to $25,000 tax free. Taxpayers can deduct up to $12,500 in overtime earnings ($25,000 for married jointly filers).
