Source: Fortune
Summary
The IRS tax filing season for 2026 is underway, with a deadline of April 15. Taxpayers can expect changes in deductions and credits, including a new deduction for tips and an increased standard deduction. The average tax refund is projected to be $1,000 higher than last year. To prepare, taxpayers should gather necessary documents, including W-2 forms, 1099 forms, and savings and investment records. The IRS offers free resources, including the IRS Free File program, which provides free guided tax preparation for those who make $89,000 or less per year. Taxpayers can also hire licensed professionals or use tax preparation software.
Our Reading
The numbers tell one story. The IRS is expecting a higher average tax refund this year, but taxpayers should be aware of the changes in deductions and credits. The new deduction for tips is subject to income limitations and only applies to qualified tips. The standard deduction has increased, and the cap on state and local taxes has risen to $40,000. To avoid common mistakes, taxpayers should double-check their Social Security number, search for online tax statements, and report all income. The IRS is also warning taxpayers about tax scams, which can come via phone, text, email, and social media.
As the IRS phases out paper tax refund checks, taxpayers are encouraged to sign up for direct deposit to receive their refunds faster. Keeping copies of tax returns is also a good practice, in case of an audit. The IRS recommends keeping copies of tax return documents for five to seven years.
The strategy enters a familiar phase, as taxpayers navigate the complexities of tax season. With new deductions and credits, and a higher average refund, taxpayers should be cautious and informed to avoid mistakes and scams.
Author: Evan Null
