What to Know About Tax Changes, Getting the Maximum Refund in 2026

Preparing for Tax Season 2026: Key Changes and Tips

Tax season officially commences on January 26, 2026, marking the beginning of a critical period for millions of Americans. This year, however, is set to be different due to several notable changes in the tax filing process. According to TurboTax expert Adam Brewer, these modifications could affect how fast and efficiently taxpayers receive their refunds.

Impact of Layoffs at the IRS

One significant change stems from planned layoffs within the Internal Revenue Service (IRS). These cuts, driven by budgetary constraints under Elon Musk’s Department of Government Efficiency initiative, have resulted in a reduction of tens of thousands of tax collection workers. This could potentially slow down the processing and disbursement of refunds.

Larger Refunds Expected

Despite potential delays, taxpayers are still looking forward to receiving larger-than-usual refunds this year. According to Treasury Secretary Scott Bessent, these larger refunds can be attributed to unadjusted withholding done before the passage of a significant spending bill in 2025. This means that those who had their paychecks pre-withheld according to the new rates could see substantial returns come tax time.

Maximizing Your Refund

To ensure you get your maximum refund, experts recommend opening a new bank account for direct deposit. “Receiving a refund by direct deposit has always been faster,” says Brewer. “However, some taxpayers are reluctant to share their banking information with the IRS.” For those who prefer not to provide their bank details, opening a new account dedicated solely to tax-related transactions might be worthwhile.

End of Free File Program

Another notable change is the discontinuation of the IRS Direct File program. While the popular Free File service for eligible taxpayers with an adjusted gross income (AGI) under $84,000 remains in place, the direct file system will no longer be offered this year.

Tips for Getting Your Full Refund

For those who are itemizing deductions on their return, the Internal Revenue Service (IRS) highlights several provisions from the recent spending bill that could benefit taxpayers. These include a deduction for seniors, no tax on tips, no tax on overtime, and no tax on car loan interest.

“You definitely want to keep in mind,” says Lisa Greene-Lewis, CPA and tax expert at Intuit TurboTax, “like if you’re a beautician or an aesthetician that you may fit into one of those professions eligible for the new deduction for tips. Also, if you’re a firefighter or police officer working overtime, you would be eligible for that deduction.”

Other Tax Credits and Benefits

For parents who had a baby in 2025, there could be a substantial financial bonus come tax time, Greene-Lewis notes. “You want to have the accurate Social Security number because kids are worth valuable deductions and credits,” she explains.

In addition, various tax credits allow taxpayers to subtract dollar-for-dollar from their income tax bill. However, many people miss out simply by failing to claim them. “The IRS reports every year that one out of five people missed the earned income tax credit and also the retirement saver’s credit,” Greene-Lewis cautions.

Other relevant credits include the enhanced adoption credit, which provides up to $5,000 for eligible taxpayers. For those who made purchases in 2025, such as clean vehicles or home energy improvements, certain credits may still be claimed depending on the timing of these transactions.

Tax Filing Season Timeline

The tax filing season runs through April 15, 2026. It’s crucial for taxpayers to stay informed about changes and take advantage of opportunities to maximize their refunds this year.

For more detailed information on the latest tax-related provisions, visit the IRS website or consult with a professional tax advisor.