January 2026: IRS USA Tax Updates

IRS Releases Key Early-Preparation Guidance for 2026 Tax Returns

The IRS is encouraging taxpayers to prepare early for the 2026 filing season by reviewing 2025 tax law changes, setting up an IRS Online Account, and opting for direct deposit as paper refund checks are phased out. Key updates include new dependent eligibility rules, reporting requirements for gig income and digital assets, and the introduction of Trump Accounts for eligible children.

Read the article here: Prepare to file in 2026: Get Ready for tax season with key updates, essential tips | Internal Revenue Service 

IRS Sets 2026 Filing Season Start Date, Highlights Key Updates

The IRS has confirmed January 26, 2026, as the official start of the 2026 filing season, with April 15 as the deadline for 2025 tax returns. New provisions under the One, Big, Beautiful Bill, including new deductions, reporting forms, and Trump Accounts, may impact refunds and tax liability, while taxpayers are encouraged to file electronically and use IRS online tools. 

Read the article here: IRS announces first day of 2026 filing season; online tools and resources help with tax filing | Internal Revenue Service 

Treasury, IRS Propose New Backup Withholding Threshold Rules Under OBBB

The Treasury Department and IRS have issued proposed regulations clarifying that third-party payment platforms generally won’t be required to apply backup withholding unless a payee exceeds $20,000 in gross payments and 200 transactions. The update aligns backup withholding and Form 1099-K reporting thresholds under the One, Big, Beautiful Bill, while reaffirming that all income remains taxable regardless of reporting thresholds. 

Read the article here: Treasury, IRS issue proposed regulations reflecting changes from the One, Big, Beautiful Bill to the threshold for backup withholding on certain payments made through third parties | Internal Revenue Service 

IRS Highlights New Individual Deductions Under One, Big, Beautiful Bill

The IRS is reminding taxpayers about new individual deductions introduced by the One, Big, Beautiful Bill, including deductions for seniors and exemptions for tips, overtime, and car loan interest. Eligible taxpayers must use the new Schedule 1-A and are encouraged to use IRS online tools. And direct deposit to maximize benefits and speed refunds. 

Read the article here: IRS.gov resources can help answer questions about the One, Big, Beautiful Bill | Internal Revenue Service 

IRS Free File Opens Early Ahead of 2026 Tax Filing Season

IRS Free File is now accepting tax returns, allowing eligible taxpayers with a 2025 AGI of $89,000 or less to prepare returns ahead of the official 2026 filing season. Returns can be prepared now and submitted electronically once the filing season opens, with Free File options also available for higher-income taxpayers through fillable forms starting Jan. 26. 

Read the article here: Use IRS Free File to conveniently file your return at no cost | Internal Revenue Service 

Treasury, IRS Issue Guidance on 100% First-Year Depreciation Under OBBB

The Treasury Department and IRS have released Notice 2026-11, providing guidance on the permanent 100% first-year depreciation deduction for eligible property acquired after Jan. 19, 2025 under the One, Big, Beautiful Bill. The notice also clarifies election options and extends depreciation eligibility to certain qualified sound recording productions. 

Read the article here: Treasury, IRS issue guidance on the additional first year depreciation deduction amended as part of the One, Big, Beautiful Bill | Internal Revenue Service 

Treasury, IRS Update Retirement Plan Rollover Safe Harbor Guidance

The Treasury Department and IRS have issued Notice 2026-13, updating safe harbor explanations that retirement plan administrators can use when informing participants about rollover distributions. The guidance reflects post-2020 tax law changes, including updates to early withdrawal penalties, required minimum distribution rules. And rollover treatment for Roth and non-Roth accounts. 

Read the article here:Treasury, IRS provide new safe harbor explanations for retirement plan administrators | Internal Revenue Service 

Special Housing Allowance Payments for Military Members Deemed Tax-Free

The Treasury Department and IRS confirmed that the one-time supplemental housing payments issued to eligible uniformed service members in December 2025 are excluded from taxable income. The $1,776 payments, funded under the One, Big, Beautiful Bill, qualify as tax-free military benefits under federal law. 

Read the article here: Treasury, IRS: Supplemental basic allowance for housing payments to members of the military are not taxable | Internal Revenue Service 

IRS Tax Tips

IRS Warns Taxpayers to Stay Alert for Tax Scams This Filing Season

As tax season approaches, the IRS is cautioning taxpayers, businesses. And tax professionals to watch for rising scams, including social media misinformation, phishing texts and emails. And schemes targeting seniors. The IRS also encourages proactive protections such as Identity Protection PINs, strong cybersecurity practices, and increased vigilance against identity theft. 

Read the article here: When preparing to file taxes, keep an eye out for scams | Internal Revenue Service 

IRS Shares Key Steps to Prepare for the 2026 Tax Filing Season

With the 2026 tax filing season opening Jan. 26, the IRS encourages taxpayers to prepare early by organizing records, accessing their IRS Online Account. Reviewing 2025 tax law changes under the One, Big, Beautiful Bill. Additionally, taxpayers should understand gig income and digital asset reporting requirements; meanwhile, they should renew expired ITINs if needed and, importantly, use direct deposit as paper refund checks are phased out.

Read the article here: Next steps to Get Ready for 2026 tax filing season | Internal Revenue Service 

IRS Updates Qualified Opportunity Zone Rules to Encourage Rural Investment

Recent updates under the One, Big, Beautiful Bill expand tax incentives for investments in rural Qualified Opportunity Zones by redefining rural areas. And lowering the substantial improvement threshold from 100% to 50%. These changes are designed to encourage long-term investment, economic growth, and job creation in underserved rural communities. 

Read the article here: Enhanced tax incentives for Qualified Opportunity Zone investments in rural areas | Internal Revenue Service