Tax Season 2026: What’s New, What’s the Same, and What Actually Matters

Lauren Twitchell
Dec 19, 2025
4 min read

Every year, tax season shows up like it owns the place.

And every year, the internet does the same thing: screams about “massive changes,” “new rules,” and “big refunds,” while most taxpayers are still trying to find their W-2.

So let’s cut through the noise.

Tax Season 2026 means you’re filing your 2025 federal return (generally due April 15, 2026). A few things did change. A lot stayed the same. And only a handful of updates actually matter for real people—especially small business owners, Etsy sellers, and self-employed filers.

This post is grounded in official IRS guidance, including the publicly available Internal Revenue Manual mindset (systems + documentation + matching), and current IRS announcements for the 2026 filing season. IRS+1

What’s New for Tax Season 2026

1) New law changes from the “One Big Beautiful Bill”

In July 2025, Congress passed H.R.1 (Public Law 119–21), often referred to as the “One Big Beautiful Bill.” Congress.gov +1

The IRS has already published summaries of key provisions and their effective dates. IRS+1

Two changes that are getting the most attention:

A. Extra deduction for seniors (65+)For tax years 2025 through 2028, eligible individuals age 65+ may qualify for an additional $6,000 deduction (potentially $12,000 for couples if both qualify), with phaseouts starting at certain income levels. IRS

B. Inflation adjustments now reflect OBBB amendmentsThe IRS issued updated inflation-adjustment guidance that explicitly includes amendments from the OBBB, including updated standard deduction amounts for tax years 2025 and 2026. IRS

What this means in plain English: if you (or your spouse) are 65+, this is one of the few “new” items that can meaningfully change your taxable income when you file in early 2026.

2) The 1099-K threshold changed again (yes, again)

If you sell online, take card payments, or use payment apps, this matters.

The IRS posted FAQs stating that under the One Big Beautiful Bill, the Form 1099-K dollar limit reverts to $20,000. IRS+1

Why you should care: regardless of what form threshold is in play, income is still income. A 1099-K is not the only way the IRS knows money moved. But changes to thresholds can change how many people suddenly “get a form” and panic.

Also worth noting: the IRS’s general 1099-K education materials still emphasize that platforms may issue 1099-Ks at lower amounts even if not required, depending on their policies. IRS

Zero Fluff takeaway: Don’t build your bookkeeping system around whether you “got a 1099.” Build it around what you actually earned.

3) Direct File may not be available for the 2026 filing season

This is big if you were hoping to file for free through the IRS.

A Federal News Network report says the IRS told states that Direct File “will not be available” in 2026, signaling the likely end (or pause) of the program. Federal News Network

Some policy groups and analysts have argued against ending it and have summarized the program’s background and rollout. Center on Budget and Policy Priorities

What this means: if you used (or planned to use) Direct File, confirm your filing plan early—don’t wait until March to discover your preferred method is gone.

4) “Get Ready” guidance is being pushed hard by the IRS

The IRS has been actively publishing “Get Ready” reminders for the 2026 filing season, emphasizing early organization, account access, and document collection. IRS+1

This matters because it’s a signal of what the IRS is trying to reduce:

filing errors
refund delays
identity verification issues
missing income mismatches

What’s the Same (And Still Trips People Up)

1) The IRS is still a matching machine

Most returns aren’t “reviewed” by a person first. They are processed, validated, and compared against third-party information returns (W-2s, 1099s, etc.). That doesn’t change.

So what stays true in 2026:

Underreported income is one of the fastest paths to notices.
Sloppy records invite longer questions.
Clean books reduce drama.

2) Deadlines and mechanics are still deadlines and mechanics

April is still April. Extensions are still extensions (more time to file, not more time to pay). Documentation still matters more than explanations.

3) Refund timing still favors e-file + direct deposit

Kiplinger’s 2026 refund timing guidance repeats what the IRS has long emphasized: e-file + direct deposit tends to be fastest, while paper returns and paper checks slow everything down. Kiplinger

(And if you claim certain credits, you should always expect additional timing rules—plan for that reality rather than hoping you’ll be the exception.)

What Actually Matters Most for 2026

This is the part nobody wants to hear, but it’s the truth:

1) Your documentation matters more than tax “hacks”

The IRS doesn’t grade on vibes. They grade on support.

receipts
bank statements
mileage logs
invoices
consistent categorization

If you want less stress, build the file before tax season, not during.

2) Small business filers should focus on systems, not software

Excel is fine. QuickBooks is fine. A shoebox is not fine.

What matters is whether you can answer:

What did you earn in 2025—accurately?
What did you spend—categorized consistently?
Can you tie your totals to bank/processor statements?
Can you prove deductions if asked?

3) Don’t let headline changes distract you from the basics

Yes, there are real updates this year—especially around the OBBB provisions and some reporting thresholds. IRS+1

But the overwhelming majority of tax season pain comes from:

filing before all documents arrive
mixing personal + business spending
missing receipts
untracked mileage
unreconciled bank activity

Those are the “same,” and they’re still the real problem.

Your Zero-Fluff 2026 Prep Checklist

If you do nothing else this month:

Create a 2025 folder (digital) with subfolders: Income / Expenses / Bank Statements / Mileage / Assets / Tax Forms
Download 2025 bank + credit card statements
Reconcile platform payouts (Etsy/Stripe/PayPal/Square) to deposits
Track mileage going forward (don’t reconstruct)
Watch for IRS “Get Ready” updates and filing season start announcements IRS+1
Make a filing plan now (especially if you expected to use Direct File) Federal News Network