2026 Filing Season Opens as New Tax Laws Reshape Refunds, Deductions, and Reporting

ByRandall Brody FATCA for Expats
2026 tax filing season expats

LAS VEGAS – Jan. 26, 2026 – The Internal Revenue Service has officially opened the 2026 tax filing season and is now accepting 2025 individual income tax returns. The standard filing deadline for most taxpayers is April 15, 2026. U.S. citizens and residents living abroad, however, automatically receive a two-month extension to file, moving their deadline to June 15, 2026, though any tax owed is still due by April 15 to avoid interest. The IRS expects to receive approximately 164 million individual tax returns this year, with most filed electronically.

A More Complex Filing Season for Many Taxpayers

This tax season is shaping up to be more complex than usual due to several new tax law provisions that impact deductions, credits, and reporting requirements. Even taxpayers with relatively simple returns may find that preparation takes longer than in past years. Starting early can help reduce errors, processing delays, and missed tax-saving opportunities.

Several new rules are now in effect that could affect refund amounts or balances due. The IRS has introduced a new Schedule 1-A for taxpayers who qualify for recently enacted deductions related to tips, overtime income, car loan interest, and expanded deductions for seniors. These changes may benefit some taxpayers but also add new layers of complexity to return preparation.

Additional reporting requirements may apply to individuals who receive income through payment apps, online marketplaces, or digital asset transactions. Forms 1099-K and 1099-DA may be issued in 2026, but all taxable income must still be reported even if a form is not received. These rules are expected to impact a growing number of taxpayers who earn income outside of traditional employment.

What’s Changed for the 2026 Tax Season

The IRS continues its transition away from paper refund checks and is encouraging taxpayers to use direct deposit. Establishing a bank account and verifying deposit information can help ensure refunds are received faster and more securely. This shift is part of a broader effort to modernize federal payment systems.

Taxpayers should also be aware that the IRS Direct File system is no longer available. While free filing options still exist for qualifying filers, these platforms are generally designed for simple domestic returns. For U.S. expats and taxpayers with foreign income, international assets, foreign bank accounts, or cross-border reporting requirements, free filing software often cannot accurately handle the added complexity. These situations involve additional obligations such as FBAR and FATCA reporting, foreign tax credits, treaty considerations, and multi-currency income reporting, which are rarely addressed correctly by generic software. As a result, professional guidance is usually necessary to avoid compliance errors, delays, and potential penalties.

Why Early Preparation Matters

Tax Samaritan encourages taxpayers to treat the start of the tax season as an opportunity to get organized early. That includes reviewing prior-year returns, gathering income documents as they arrive, confirming banking information for refunds, and taking time to understand how new deductions and reporting rules may apply. Preparing in advance can reduce stress, prevent rushed decisions, and create a smoother filing experience.

With new legislation in effect and evolving IRS systems, the 2026 tax season rewards taxpayers who act early. Thoughtful preparation now can help prevent delays later and ensure returns are filed accurately and on time.

Taxpayers who need help navigating the 2026 filing season, particularly those living abroad, with foreign income, or affected by the new reporting rules, may request a free 30-minute consultation with Tax Samaritan to discuss their situation and learn how we can assist: https://www.taxsamaritan.com/contact-us/.

For more information about the new tax provisions under the One, Big, Beautiful Bill (OBBB), visit the IRS resource page at: https://www.irs.gov/newsroom/one-big-beautiful-bill-provisions.

Wrapping It Up

If you’re investing outside the U.S. or considering foreign investments, make sure that you understand the U.S. tax implications. This will help to reduce unnecessary interest and income tax. Remember that the tax rules for U.S. expats are complex and can be confusing. Check with a tax professional to ensure you’re always on top of your tax obligations.

Tax Samaritan aims to provide our clients with the best counsel, advocacy, and personal service. We are not only expat tax preparation and representation experts but strive to become valued business partners. Tax Samaritan understands our clients’ unique needs; every tax situation requires a personal approach to providing realistic and effective solutions.

Do you need help filing your US expat taxes? Schedule a call using the button below.

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Randall Brody

All About Randall Brody

Randall is the Founder of Tax Samaritan, a boutique firm specializing in the preparation of taxes and the resolution of tax problems for Americans living abroad, as well as the other unique tax issues that apply to taxpayers. Here, they help taxpayers save money on their tax returns.