Additional Coverage:
For those eagerly awaiting their tax refunds, mark your calendars: The IRS announced Thursday that it will begin accepting federal income tax filings on January 26, 2026.
Annual tax refunds are often the largest single checks households receive each year. Last year, the average payment was nearly $3,200, according to IRS data. This year’s refund season could be even more substantial, with financial services company Piper Sandler predicting an additional $1,000 increase to the typical check in a recent analysis.
Several significant changes, enacted through the Republicans’ “big, beautiful bill” act, will impact 2025 tax returns. These changes, retroactive to 2025, introduce new tax breaks including the elimination of taxes on certain overtime and tipped income. Additionally, the cap on the deduction for state and local taxes (SALT) has been raised from $10,000 to $40,000.
Federal income tax returns are due by April 15. However, taxpayers who require more time can file for an automatic tax extension before this deadline, pushing their filing date to October 15. It’s crucial to remember that any taxes owed must still be paid by April 15 to avoid penalties, even if an extension for filing is granted.
When will you get your refund?
The most common question on taxpayers’ minds is how quickly their refund will be deposited. The timeline depends on whether you file electronically or submit a paper return, and if the IRS identifies any issues with your filing.
Electronic filers typically receive their refunds in less than 21 days. This means a taxpayer who files their Form 1040 on January 26 could see their refund by February 16, assuming there are no complications with the return.
Taxpayers can track the status of their return using the IRS’ “Where’s My Refund” tool. The agency usually provides information about 24 hours after an electronic filing. The IRS noted on Thursday that the “Where’s My Refund” tool will require four weeks to provide information for paper tax returns, as these forms typically take longer to process due to manual handling compared to e-filed returns.