Preparing to File in 2026: What Taxpayers Should Do Now
The 2026 tax filing season may feel far off, but the IRS is already encouraging taxpayers to take a few simple steps now to avoid delays, missed credits, and unnecessary stress when filing 2025 tax returns.
A little preparation goes a long way. Below are the key updates and practical steps taxpayers should know as they get ready for the 2026 filing season.
Access Your IRS Online Account Early
One of the most important things you can do right now is create or log into your IRS Individual Online Account.
Your online account allows you to:
- View balances owed and payment history
- Make or schedule payments
- Access tax records and notices
- Manage communication preferences
- Help protect your tax identity
Having access before tax season starts can save time and prevent last-minute scrambling if the IRS needs additional information.
Paper Refund Checks Are Being Phased Out
The IRS is continuing its shift away from paper refund checks as part of a federal initiative to modernize government payments.
Direct deposit is strongly encouraged.
If you don’t currently have a bank account, now is the time to open one so refunds can be deposited electronically. Direct deposit is faster, more secure, and reduces the risk of lost or stolen checks.
Review New 2025 Tax Law Changes
Several tax law changes take effect for 2025 returns, and they may directly impact your refund or tax bill.
Recent legislation includes:
- New deductions and credits
- Updated eligibility rules for certain dependent credits
Beginning in 2025, taxpayers (and spouses filing jointly) must have a valid Social Security number or ITIN issued on or before the return’s due date (including extensions) to claim certain credits for other dependents.
Missing this requirement could mean losing valuable credits.
New “Trump Accounts” for Eligible Children
A new retirement savings option called Trump Accounts will be available for children under age 18 who have a valid Social Security number.
Key details include:
- Accounts can be opened by parents or authorized guardians
- Eligible children must be U.S. citizens
- Children born between January 1, 2025 and December 31, 2028 may qualify
- A $1,000 pilot program contribution is available for qualifying children
This is a new area for many taxpayers, so it’s important to understand how these accounts work and how they may affect long-term financial and tax planning.
Income From Payment Apps and Online Sales Is Taxable
If you earn money through:
- Gig work
- Side jobs
- Online marketplaces
- Payment apps
…it is taxable income.
Payment processors and platforms may issue Form 1099-K:
- Payment card companies may report any amount
- Payment apps and marketplaces will issue forms when payments exceed $20,000 AND 200 transactions in a year
Even if you don’t receive a form, the income is still reportable.
Digital Assets Must Be Reported
Taxpayers who bought, sold, received, or exchanged digital assets must report those transactions.
This includes:
- Cryptocurrency
- Stablecoins
- NFTs
Some taxpayers may receive Form 1099-DA from brokers, but all taxpayers must answer the digital asset question on Form 1040, regardless of whether a form is issued.
Failure to report digital asset activity properly can lead to penalties or IRS scrutiny.
Get Ready Now for a Smoother Filing Season
Preparing early helps prevent delays, rejected returns, and missed opportunities.
Smart next steps include:
- Reviewing tax law changes
- Gathering income and expense documents
- Confirming access to IRS online tools
- Making sure your banking information is up to date
If your tax situation has become more complex — or if you’ve fallen behind on filings or payments — getting guidance early can make a significant difference.
A little preparation now can mean a much smoother, less stressful experience when you file in 2026.
Schedule a free tax consultation with us and we help you through the process.
