The IRS just announced when you can start filing your taxes. Here's what to expect this tax season.

MW The IRS just announced when you can start filing your taxes. Here's what to expect this tax season.

Andrew Keshner

It's the first tax season with the latest Trump tax cuts - and also the first since deep staff cuts at the IRS

There's a chance many taxpayers will get bigger refunds this year, but with cuts to staffing at the IRS, it's extra important to make sure tax returns are accurate and complete, experts say.

Americans will get their first up-close look at the impact of President Donald Trump's massive new tax law in several weeks, now that the Internal Revenue Service has said when people can start filing their 2025 taxes.

The IRS will begin accepting income-tax returns on Monday, Jan. 26, officials for the federal tax agency said Thursday. During the filing season, which runs through Wednesday, April 15, the IRS is expecting to process 164 million returns.

When filing their 2025 taxes, Americans will find a tax code that's been amended by Trump's One Big Beautiful Bill Act - and that offers the chance for noticeably higher refunds.

Tax-filing season is a major annual event, and for some households, refunds can be the largest single payment they receive all year - something that could be particularly important this year, with affordability on many people's minds.

Along with a number of additions to the tax code, the Trump administration has also made deep cuts to IRS staffing. The drive by the so-called Department of Government Efficiency to reduce the federal workforce in early spring 2025 resulted in the IRS losing roughly one-quarter of its staff.

In September, analysts at a Treasury Department watchdog organization said they were concerned the staff cuts could affect filing-season operations. Congressional Democrats echoed those worries last month.

Now the question is whether the agency can function smoothly with fewer workers and revamped tax rules.

The IRS will be ready, said Frank Bisignano, who serves as CEO of the tax agency and also as commissioner of the Social Security Administration.

"As always, the IRS workforce remains vigilant and dedicated to their mission to serve the American taxpaying public. At the same time, IRS information systems have been updated to incorporate the new tax laws and are ready to efficiently and effectively process taxpayer returns during the filing season," he said in a statement.

April 15 is the final day to pay owed income tax, but the agency can set up installment plans for people who can't pay the full amount they owe at once. April 15 is also the last day for taxpayers to file a return or get an extension to Oct. 15 to submit their return.

Here's what to expect this tax season.

Bigger refunds

Almost two-thirds of filers last year received refunds, with the average amount being $3,167. With the new tax breaks, refunds this year could be up to $1,000 higher, according to a range of estimates.

A range of temporary new deductions for seniors, tipped workers and certain employees who receive overtime pay are set to take effect for 2025 returns. An existing deduction for state and local taxes is quadrupling in size through 2029, climbing to $40,000.

Some households with income between $200,000 and $500,000 could save nearly $1,200 on their taxes this year with the larger cap on state and local taxes, known as SALT, according to the Tax Policy Center.

Widely used tax breaks are becoming more generous because of the law. The child tax credit is increasing to $2,200 per child, up from $2,000, and the standard deduction will cut more taxable income - up to $15,750 for individuals and to $31,500 for married couples.

Although it's too late for year-end planning to shave tax bills, there are still some last-minute ways to boost refunds.

Some households might be able to claim a 2025 deduction on IRA contributions through April 15. Contributions to health savings accounts, which are tax-deductible, have the same deadline.

Refund checks are being phased out

The IRS began phasing out paper refund checks last fall in response to an executive order. Approximately 9.5 million taxpayers received paper checks in last year's filing season, according to the IRS.

The vast majority of returns are now e-filed rather than mailed. This year, people can continue to mail paper returns, but if they really want to receive a paper check, they should expect to jump through more hoops and wait longer.

When 2025 returns lack bank-account information for direct deposit, the IRS will send a letter asking for the bank information, according to the IRS National Taxpayer Advocate. The letter will provide information on how to seek an exception to the order phasing out paper-check payments, the ombudsman's website said.

The paper phase-out reaffirms what tax officials have been saying for years: that the best way to file taxes and claim a refund is to submit the return electronically with direct-deposit information.

It typically takes less than 21 days for the agency to send an electronic refund, but it's sluggish when it comes to regular mail. The IRS says mailed payments may take at least six weeks.

Customer-service challenges?

Double-check your return before filing and brace yourself in case of snags.

The staff at units handling return processing, customer service and troubleshooting are almost 20% smaller, according to a Treasury Department watchdog report last fall. The IRS estimated it would need to hire 3,500 new employees to maintain last year's level of telephone service in the upcoming year. The hiring push started in August, officials said at the time.

If the IRS is short-staffed, that puts the onus on taxpayers to make sure everything is correct and accurate on their returns. Fewer workers mean addressing mistakes could take longer - and that could result in longer waits for refunds.

So double- and triple-check that everything is accurate, said Pete Sepp, president of the National Taxpayers Union: "The accuracy margin this year should be more like 110% rather than just 100%."

No Direct File

The menu of free tax-preparation offers has shrunk this year. In October, the Treasury Department said it was suspending the IRS Direct File platform, citing too much expense for too little use. Consumer advocates said the administration sided with the tax-software industry and didn't give the Biden-era platform a chance to succeed.

There's still the IRS Free File program, a partnership with tax-software companies. Major providers including TurboTax $(INTU)$ and H&R Block $(HRB)$ offer their own free tax-preparation programs for "simple" returns - but read the fine print to learn what counts as a simple return.

People may need to pay an average $290 for their tax preparation, according to the IRS.

What about a shutdown?

Just as filing season is gearing up, the government could be shutting down again.

The federal government is now funded through the end of the month, after a record-long shutdown ended in November. But without fresh funding from Congress beyond Jan. 30, all nonessential government functions would shut down again.

The IRS, however, would continue processing tax returns, Sepp said. People with straightforward, mistake-free returns likely wouldn't notice a difference, he said, although delays and headaches could arise for small businesses or people with complex returns.

-Andrew Keshner

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January 08, 2026 11:37 ET (16:37 GMT)

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