The IRS has provided instructions for taxpayers to follow before filing their returns and is advising them to get ready for the upcoming tax season. With so many new laws in place, taxpayers should be aware of any changes that may affect them.
The agency advised, “Take a few steps today, reviewing tax law changes, gathering documents and using online tools, to help ensure a smoother, less stressful experience when filing taxes in 2026.”
How to create an IRS account and receive payment more quickly
Accessing your IRS Individual Online Account is “one of the most important steps.” Taxpayers can see their account information, manage communications, secure tax information, and make payments with these accounts, which are open all the time. You can create your online account using a photo ID.
Additionally, the IRS advised that because the government is making the payments process more modern, it will no longer send tax refunds via paper checks following the executive order signed by President Donald Trump (One Big Beautiful Bill Act).
Paper checks are more than sixteen times more likely to be misplaced, tampered with, stolen, or delayed, according to the IRS. That’s why they recommend that taxpayers set up direct deposit. Electronic refunds will speed up the processing; Americans who file online with direct deposit can get their refunds in less than 21 days.
How cryptocurrency and payment apps will impact your taxes in 2026
Income from payment apps and online sales is taxable. “All income from part-time work, gig activities or sales of goods and services is taxable. Form 1099-K, Payment Card and Third Party Network Transactions, will be issued by payment card companies for any amount and by payment apps and online marketplaces when payments exceed $20,000 and more than 200 transactions occur for the year,” according to the IRS.
Cryptocurrency, NFT, and stablecoins are examples of digital assets that taxpayers “must report those transactions” for purchasing, selling, or receiving. All need to respond to the digital asset question on Form 1040 and report any gains, losses, or related income, though some may receive Form 1099-DA.
Key tax changes for 2026 you should know
- For standard deduction filers, charitable cash gifts are deductible up to $1,000 for individuals and $2,000 for joint taxpayers.
- Higher 401(k) limits: $24,500 for those under 50 years old and $32,500 for those over 64 years old.
- Seniors (over the age of 65) with MAGI over $75,000 may be eligible for a $6,000 deduction; eligible joint filers with MAGI over $150,000 can get a $12,000 deduction.
- Subject to regulations and reductions, there is no tax on tips, overtime, or interest on auto loans.Individuals who are “customarily and regularly receiving tips” may deduct up to $25,000 annually for “qualified tips” between now and December 31, 2024. This deduction will phase out above MAGI $150,000 single or $300,000 joint.
- The “half” of time-and-a-half overtime is deducted up to $12,500 (individual) or $25,000 (joint), with a phase-out above MAGI of $150,000 single or $300,000 joint.
- A $10,000 interest reduction could be applied to an eligible personal-use vehicle loan if it was granted after December 31, 2024.
Trump accounts and what to expect in 2026
For eligible American children, the OBBBA is setting up Trump Accounts (government-created savings accounts). The government will give a $1,000 deposit to children under 18 who were born after December 31, 2024, but before January 1, 2029; access is given at age 18.
Michael Dell is joining the cause with a $6 billion donation, adding $250 to 25 million children up to 10 years old. These accounts will open on July 5, 2026, and parents can enroll by making an election when filing taxes.
With all the changes coming this new tax season, IRS Online Account, direct deposit, track income from apps and digital assets, and review new OBBBA deductions and credits. The IRS recommends keeping up with the info and starting your process early.
