The Internal Revenue Service (IRS) will begin accepting and processing 2025 federal income tax returns on January 26, launching a filing season that includes major changes tied to recently enacted tax law, the agency announced Thursday.
Taxpayers will have until April 15 to file and pay any taxes owed. The IRS expects to receive about 164 million individual returns, with the vast majority submitted electronically.
The 2026 filing season is the first to reflect provisions of the One, Big, Beautiful Bill, a sweeping tax package passed last year that introduced new deductions and credits aimed at working families and retirees. Among the new benefits are deductions for tips, overtime pay, car loan interest, and an enhanced deduction for seniors.
A key change for New Jersey residents is the increase in the federal State and Local Tax (SALT) deduction cap to $40,000 for the 2025 tax year, up from last year’s $10,000 limit. This applies to itemized deductions for state income, sales, and property taxes.
Additionally, the bill increases the 2025 standard deduction to $15,750 for single filers, $23,625 for the head of a household, and $31,500 for married couples filing jointly. Another credit which is increasing is the Child Tax Credit, which is now $2,200 per child, up from $2,000.
According to an analysis from the Tax Foundation, a nonpartisan think tank based in Washington D.C., New Jersey taxpayers could see an average of $3,700 in tax savings in 2026 due to the new bill.
To claim those benefits, filers will use a newly created Schedule 1-A, Acting IRS Commissioner Scott Bessent said in a statement. He said the agency had been updating forms and systems to reflect the new law.
The IRS is encouraging taxpayers to use its online tools, including IRS.gov and the Individual Online Account, which allows users to view balances, payment history and tax records.
Another new feature this year is the option to open so-called “Trump Accounts,” a new type of individual retirement account that parents or guardians can establish for children.
Refund tracking will remain available through the “Where’s My Refund?” tool, with status updates typically available within 24 hours of electronic filing or about four weeks after mailing a paper return, the IRS said.
The agency said most taxpayers who file electronically and choose direct deposit should continue to receive refunds within 21 days.