As the tax season approaches, it’s time for taxpayers to prepare for filing their 2025 federal income tax returns. The Internal Revenue Service (IRS) has announced that it expects around 165 million individuals will submit their returns by the April 15 deadline.
With the complexities of tax filing becoming more pronounced, the head of the Taxpayer Advocate Service, Erin M. Collins, has warned that the 2026 tax season may bring challenges. The IRS has seen a significant workforce reduction—from approximately 102,000 employees at the beginning of 2025 to about 74,000 at year’s end—partly due to layoffs and firings implemented by the Department of Government Efficiency. This decline in personnel, combined with ongoing leadership changes and adjustments to tax laws, adds pressure to an already strained tax filing process.
This year marks notable changes for taxpayers to consider. One key update involves the IRS’s move to phase out paper checks for tax refunds. Most taxpayers will need to provide their banking information to facilitate direct deposit of their refunds. Only limited paper checks will be issued in hardship cases. Taxpayers who do not have bank accounts can utilize prepaid debit cards or digital wallets for receiving their refunds, emphasizing the importance of submitting direct deposit information to avoid delays.
Additionally, a new senior deduction has been introduced, which might benefit seniors aged 65 and older by potentially eliminating taxes on their Social Security benefits. Eligible individuals can claim an extra deduction of up to $6,000, while married couples filing jointly may claim up to $12,000.
For those seeking assistance with tax filings, the IRS offers a Free File system, enabling eligible workers with incomes below $84,000 to file their returns at no cost. The Volunteer Income Tax Assistance (VITA) program also provides aid for individuals typically earning between $67,000 and $70,000, while the Tax Counseling for the Elderly (TCE) program offers specialized support to senior citizens concerning tax issues related to pensions and retirement.
Electronic filers can expect to see their refunds processed in 21 days or less, with direct deposits being quicker. In contrast, paper returns may take four weeks or longer to process, especially if amendments or corrections are required.
Taxpayers can easily track their refunds using the IRS’s “Where’s My Refund?” tool, available within 24 hours of e-filing and usually four weeks after submitting a paper return. This tool provides updates on refund status and projected deposit dates, making it easier for individuals to manage their expectations.
With average refunds in the past year totaling around $3,167, experts predict this year’s figures may rise to $1,000 more, encouraging taxpayers to prepare diligently for the upcoming season. Overall, while challenges loom for the 2026 tax filing landscape, preparation and awareness of new provisions could ease the filing experience for many.