The 2026 tax season — which kicks off Monday, Jan. 26 — is not the year to simply embrace the next tax tip you spot on TikTok.
One tax professional told me that his mother-in-law heard something somewhere that had her thinking she might get $6,000 back just for filing a 2025 tax return.
No, that’s not true.
“That’s the challenge we’re up against,” Matt Hetherwick, chief program officer for the nonprofit Accounting Aid Society in Detroit, told me.
This tax season, many people could be hearing oversimplified versions of some complicated tax changes on 2025 tax returns, including the new enhanced senior deduction for older adults.
The new deduction allows older adults who qualify to claim an additional deduction — up to $6,000 for singles or $12,000 for married couples filing a joint return when both spouses are 65 or older.
It’s a deduction — not an automatic refund — that lowers your taxable income to trigger a bigger refund or a smaller tax income tax bill.
“It’s human nature to try to figure out how you fit into that,” Hetherwick said. But you cannot take a quick tip and run with it. He was glad that his mother-in-law reached out to try to better understand what she had just heard.
While a social media influencer might sound in the know about some new tax break, the tip could very well not apply to you or, even worse, be completely wrong.
Every tax season, Hetherwick said, some tax filers will think they qualify for something when they don’t.
The Internal Revenue Service announced that Jan. 26 will be the start of the filing season. Several new tax law provisions of the One Big Beautiful Bill Act become effective, on 2025 returns. Taxpayers have until Wednesday, April 15, 2026, to file 2025 tax returns.
Everyone’s tax situation is different even when many things seem similar — such as both families having two small children and living in similar size homes. One might qualify for a key tax break, and another will not, based on other circumstances.
Early-bird tax filers will be happy to know that the Internal Revenue Service will begin accepting and processing 2025 income tax returns on Monday, Jan. 26.
And the state of Michigan will kick off its tax season at the same time.
Yet buckle up for a potentially bumpy ride here.
“The 2026 tax season is shaping up to be one of the most complex and consequential filing seasons in decades,” said Tom O’Saben, enrolled agent and director of tax content and government relations for the National Association of Tax Professionals.
We’re looking at what he calls the “simultaneous convergence of multiple major changes, many of them interacting with each other.” In many cases, he noted, income-based limits and distinctions will affect individual taxpayers differently.
And O’Saben predicted we could be looking at “widespread taxpayer confusion about why outcomes look different from prior years.”
Several tax preparers already began handling 2025 tax returns earlier in January. TurboTax customers were able to start using software or working with professionals Jan. 6.
“Although the IRS has not yet begun accepting e-filed tax returns, TurboTax will securely hold your completed taxes, transmit them to the IRS, and individual states when they open for e-file,” said Lisa Greene-Lewis, CPA and tax expert with TurboTax.
When the IRS launches the filing season, she said, TurboTax customers are notified whether the IRS accepted your e-filed return.
She said TurboTax is up to date with the IRS’s latest guidance and provides guidance within its product to reflect the new tax laws.
Greene-Lewis anticipates that a majority of tax filers could see up to $1,000 more in their refund or cut off their tax bill this year. She recommends that people gather documents that report your income like W-2s and 1099s and receipts for any deductible expenses.
The IRS notes that taxpayers should wait to file until they have received all their tax records.
Free tax help from IRS-certified volunteers started at several Accounting Aid Society sites Jan. 20, according to Hetherwick.
Free help is available to individuals making less than $69,000 a year. Online self-preparation tax services are available to individuals with up to $84,000 in income.
Tax filers who claim the earned income tax credit also can get free tax preparation services at AARP Foundation Tax-Aide sites. You do not need to be an AARP member to use this service. See TaxAide.AARPFoundation.org for information. Appointments are required.
Joanne Sullivan, 73, of Detroit, right, waits for free tax preparation done by seasonal tax preparer Sheila Brooks for the Accounting Aide Society program at The Ford Community Center-East in Detroit on Tuesday, Jan. 20, 2026.
Yet, if you’re in a hurry to get your hands on tax refund cash, take a few of these thoughts to heart.
Watch out for scams and scammers. Given all the tax changes on 2025 returns, we’re likely to see bad actors posing as tax preparers offering a great deal on their services. Or even spoofing calls to impersonate the Internal Revenue Service or well-known tax preparation services.
It is not the year to rush and copy what you did last year to file a 2025 federal income tax return as soon as possible. Too many tax rules changed — including adding four key tax deductions — as part of the One Big Beautiful Bill Act, which was signed into law July 4.
Taxpayers are likely to be shocked to discover that they will not be able to deduct all the pay they received when they picked up overtime hours in 2025.
IRS Notice 2025-69 issued Nov. 21 makes it clear that only specific amounts of money will qualify for a “no tax on overtime” deduction on Schedule 1-A.
You’re only claiming the amount of money you receive that covers the “half” portion of the “one and one-half times” your pay for overtime, as “qualified overtime” for the deduction, said Mark Luscombe, principal analyst for Wolters Kluwer Tax & Accounting in Riverwoods, Illinois.
A new tax deduction that applies to overtime pay will first appear on 2025 federal income tax returns that are filed in 2026. The tax break will exist in 2025, 2026, 2027 and 2028. It can apply if you itemize deductions or claim the standard deduction.
Say you’re paid $10 an hour at regular time. But you’re paid an extra $5 an hour — half your regular rate — when working overtime. You only get to deduct that $5, not the entire $15 an hour earned during those overtime hours.
Income limitations also apply. The deduction on “no tax on overtime” starts phasing out for single taxpayers with modified adjusted gross income over $150,000 and above $300,000 for married couples filing a joint return.
The maximum annual deduction related to overtime pay is $12,500 for single filers and $25,000 for joint filers.
Here’s a tricky rule: “Mandatory tips,” including those when a restaurant automatically adds a 20% service charge, aren’t eligible for the new tip income tax deduction.
The IRS takes the position that a tip must be voluntary, not required by the employer or establishment, paid freely by the customer and given directly or indirectly to the worker to qualify for the tax break.
Another key point: Those with higher incomes will receive a smaller tax break or none at all for tip income, depending on their modified adjusted gross income.
The deduction relating to taxes on tips phases out, or gets smaller, for taxpayers with modified adjusted gross income over $150,000 if single or above $300,000 for married couples filing a joint return.
Eligible workers would be able deduct up to $25,000 in tips per return, according to tax experts. You need a valid Social Security number.
A major, new tax break hits 2025 federal income tax returns that will cut the tax bill — or lead to a bigger refund — for many older adults age 65 and up.
Yet, “there’s a lack of knowledge that the deduction exists now,” said John Hishta, senior vice president for campaigns for AARP, which supported the new enhanced senior deduction and now is working to get the word out about the new tax break.
The enhanced deduction for seniors applies on 2025 tax returns to older adults born before Jan. 2, 1961. If you’re 65 or older now, you can claim an additional deduction of up to $6,000 on your 2025 federal income tax return.
Eligible married couples who are both 65 and older can claim up to $12,000 for an additional deduction.
Detroit residents Cynthia Able, left, 65, and Tiffany Thomas, 54, speak after talking about how they benefitted from being in a tax preparation program. They were attending a press conference at The Ford Community Center — East in Detroit on Tuesday, January 20, 2026. The event announced a campaign for free tax preparation for Detroit residents earning under $69,000, with the goal of helping them maximize federal and state tax credits.
The White House Council of Economic Advisers estimated that those who qualify could gain on average $670 in after-tax income, thanks to the new tax break. The deduction is estimated to give a boost to 33.9 million seniors, including older adults who are not claiming Social Security benefits.
The size of the deduction will depend on your income. The enhanced senior deduction starts phasing out at a 6% rate for single taxpayers with income over $75,000 and for married couples filing a joint return with income over $150,000.
The deduction is fully phased out at $175,000 for single filers or $250,000 for joint filers.
Another tip: Married couples cannot file separately and claim the new deduction for older adults, which many say will offer relief from growing financial anxiety.
Nancy LeaMond, AARP’s executive vice president and chief advocacy and engagement officer, said an extra $600 or so will make a real difference for many older Americas who qualify for the new tax deduction when it comes to covering groceries, prescriptions and utility bills.
LeaMond said older adults participating in AARP focus groups and surveys said they’re still working long after they thought they’d be retired. One 66-year-old woman in Minnesota acknowledged that she took money out of a retirement account earlier than planned just to cover day-to-day expenses.
“Frankly, the stories go on and on,” LeaMond said.
Yes, you probably do.
Pay attention to Schedule 1-A if you qualify for any of these four new tax breaks: The enhanced deduction for seniors, a deduction on car loan interest, a deduction on tips and a deduction on overtime.
You’ll need to file Schedule 1-A to claim the senior deduction and the other three prominent tax deductions that are part of the One Big Beautiful Bill Act.
First off, the deduction does not apply to car loans taken out to buy a used car. It won’t work if you’re leasing that car. And the car you bought must have undergone final assembly in the United States.
You will have to list the VIN directly on Schedule 1-A, page 2, to claim the “no tax on car loan interest deduction.”
The deduction applies only for new car loans taken out after Dec. 31, 2024, through Dec. 31, 2028. The maximum annual deduction is $10,000 for new car loan interest.
You’re not deducting your entire monthly car payment; just the interest paid over the year.
The loan must be used to buy a vehicle that is originally used by the taxpayer, among other requirements.
Income limits apply. In simplest terms, the deduction for auto loan interest begins to phase out when your modified adjusted gross income is above $100,000 for single filers and $200,000 for joint filers.
The deduction on new car loans ends up being no longer available at a modified adjusted gross income of $150,000 for single filers and $250,000 for joint filers.
“For the 2025 tax year, taxpayers can still mail a check to pay any balance due,” according to Alison Flores, director of the H&R Block Tax Institute.
The IRS has confirmed that all tax payments made by paper check were accepted through the end of 2025, she said, this will continue into 2026.
“While electronic payment options offer faster confirmation, mailing a check remains an approved method,” Flores said.
Best bet: Don’t peg when you can pay your bills based on when you anticipate you’ll receive an income tax refund. Refund delays can be common when there are errors and other issues involving tax returns.
The IRS states that it issues most refunds in fewer than 21 days for taxpayers who file electronically and choose direct deposit.
You can go to IRS.gov. to check on your refund status. You’ll need to provide details, including the refund amount that you’re expecting to get. If taxpayers file electronically, they should wait 24 hours before checking the status of their refund. If taxpayers file a paper return, they should wait four weeks before checking the status.
The IRS has a “Where’s My Refund” tool online. The IRS notes that your refund status will appear around 24 hours after you e-file a current-year return or four weeks after you file a paper return.
Contact personal finance columnist Susan Tompor: stompor@freepress.com. Follow her on X @tompor.
