The morning of Monday, January 26, 2026, will not be just any day in American homes. Marked in red on the Internal Revenue Service (IRS) calendar, that date will officially kick off a tax season anticipated to be the most complex and transformative in decades.
This is not just another annual ritual, as this year the IRS navigates the deep and often turbulent waters left by the full implementation of the One Big Beautiful Bill Act (OBBBA), a far-reaching tax reform passed last year under President Donald Trump’s administration.
New Tax Season Coming: What to Know Before It Starts
Millions of taxpayers will face a new landscape of credits, deductions, and, significantly, new reporting obligations that touch on everything from tips to digital assets. The IRS expects to process approximately 164 million individual tax returns, with the deadline remaining firm until Wednesday, April 15.
However, the nature of the process has changed. At the heart of the transformation is an unprecedented digital push, combined with executive directives that seek to modernize—and in some cases, force—taxpayers’ transition to a fully digital financial ecosystem.
The executive order “Modernizing Payments To and From America’s Bank Account” (EO 14247) is not merely a suggestion. It represents the beginning of the end for the physical tax refund check, a symbol of tax season that will soon be a relic.
The IRS, in a tone that blends encouragement and warning, strongly urges taxpayers to open bank accounts to receive refunds via direct deposit.
New IRS Tax Forms: What to Know to Do It Right
But digitalization goes beyond payment methods. Taxpayers will encounter updated tools and new forms that reflect the evolving economy. The famous “Where’s my refund?” will remain the mantra, with information available within 24 hours for electronic returns. However, the real innovations come with Form 1099-K and the newly introduced Form 1099-DA.
The latter, dedicated to Digital Assets, embodies the IRS’s attempt to bring order to the still-unregulated world of cryptocurrencies and digital tokens, requiring brokers to report income. Meanwhile, Form 1099-K expands its scope to include third-party payments, capturing gig economy transactions and online sales more accurately. The IRS’s warning is clear: all taxable income must be reported, whether or not one of these forms is received.
Meet Schedule 1-A: The Tax Form That Could Boost Your Refund
The other major piece of the puzzle is the new Schedule 1-A, a document specifically designed to channel the new law’s signature deductions. This is where taxpayers can claim benefits such as the exclusion of tip taxes, the exemption from overtime pay, the non-taxation of car loan interest, and an expanded deduction for seniors.
These provisions, which have a direct impact on people’s wallets, are the populist core of the reform and promise to be the battleground where tax preparers earn their keep.
Free Tax Help for Military Members and Veterans
Choosing the right tax preparer is more critical than ever. The IRS, recognizing the added complexity, has expanded its guidance resources to help taxpayers distinguish between ethical professionals and those who might exploit the confusion. Programs like Voluntary Tax Assistance (VITA) and Tax Counseling for Seniors (TCE) will continue to offer free services to qualified individuals, while military personnel and veterans can access the MilTax program.
The IRS’s online individual account will remain as the recommended central dashboard, offering a real-time view of balances, payments, and records.
The Trump Accounts: How to Apply
A novel and controversial twist is the promotion of “Trump Accounts,” a new retirement savings vehicle for children that parents or guardians can set up, directing interested parties to the government portal.trumpaccounts.gov.
While the IRS Free Filing program will open its digital doors on January 9 for eligible taxpayers, and Fillable Forms will be available to everyone starting on January 26th, the shadow of fraud and identity theft looms over the season. Tax scams are becoming more sophisticated as technology advances, and the IRS dedicates a significant portion of its communications to educating the public on how to prevent, report, and recover from these crimes.
