Tax Season is Here. Here’s What You Need to Know for Stress-Free Filing

March 2, 2026

Tax season has begun with an April 15 deadline, and taxpayers should start organizing their documents early while avoiding rushing through the process. Recent Republican tax legislation signed by President Trump introduces several new deductions, including provisions for tips, overtime, car loan interest, and benefits for seniors, while the state and local tax deduction cap has increased from $10,000 to $40,000. The average refund is projected to reach approximately $4,167 this year, roughly $1,000 higher than last year's average of $3,167, due to these tax law changes.

Who is affected

All individual taxpayers required to file returns by April 15
Tipped workers in specific industries (bartenders, food servers, musicians, housekeeping cleaners)
Residents of high-tax states like California, New York, and New Jersey
Married couples and heads of households (due to changed standard deductions)
People aged 65 or older by December 31
Parents and guardians claiming the Child Tax Credit
Taxpayers earning $89,000 or less (eligible for IRS Free File)
People earning $69,000 or less, those with disabilities, or limited English speakers (eligible for VITA)
Individuals aged 60 or older (eligible for TCE program)

What action is being taken

Tax season is underway with the IRS processing returns
The IRS is phasing out paper tax refund checks
Eight IRS partners are offering free guided tax preparation through IRS Free File
The IRS is funding VITA and TCE programs that are providing free tax help
Tax professionals and organizations are hosting clinics for assistance

Why it matters

This tax season represents significant financial implications for millions of Americans, with over 165 million returns expected to be processed and the average refund projected at approximately $4,167—$1,000 higher than the previous year. The new deductions and increased SALT cap provide substantial tax relief, particularly for residents in high-tax states who can now deduct up to $40,000 in state and local taxes instead of the previous $10,000 limit. These changes, combined with new deductions for tips, car loan interest, and senior benefits, could meaningfully impact taxpayers' financial situations, making proper understanding and documentation crucial to maximize refunds and avoid costly mistakes or audits.

What's next

Taxpayers need to file their returns by the April 15 deadline
Those expecting refunds should sign up for direct deposit
Taxpayers should gather all necessary documents and create an identity protection PIN with the IRS
People newly eligible for itemized deductions (particularly SALT) should evaluate whether itemizing benefits them
Taxpayers must fill out the new Schedule 1-A form to claim new deductions for tips, car loans, senior benefits, and increased SALT deductions
Taxpayers should keep copies of their tax returns for five to seven years in case of future audits

Read full article from source: The San Diego Voice & Viewpoint