News & Links

IRS announces first day of 2026 filing season; online tools and resources help with tax filing

January 8, 2026

WASHINGTON - The Internal Revenue Service announced Monday, January 26, 2026, as the opening of the nation’s 2026 filing season. This year, several new tax law provisions of the One, Big, Beautiful Bill become effective, which could impact federal taxes, credits and deductions.

Taxpayers have until Wednesday, April 15, 2026, to file their 2025 tax returns and pay any tax due. The IRS expects to receive about 164 million individual income tax returns this year, with most taxpayers filing electronically.

IRS.gov has online tools and resources taxpayers can use before, during and after filing their federal tax return. One, Big, Beautiful Provisions provides information that could help lower tax bills and potentially increase refund amounts.

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IRS sets 2026 business standard mileage rate at 72.5 cents per mile, up 2.5 cents

December 31, 2025

WASHINGTON - The Internal Revenue Service today announced that the optional standard mileage rate for business use of automobiles will increase by 2.5 cents in 2026, while the mileage rate for vehicles used for medical purposes will decrease by half a cent, reflecting updated cost data and annual inflation adjustments.

Optional standard mileage rates are used to calculate the deductible costs of operating vehicles for business, charitable, and medical purposes. Additionally, the optional standard mileage rate may be used to calculate the deductible costs of operating vehicles for moving purposes for certain active-duty members of the Armed Forces, and now, under the One, Big, Beautiful Bill, certain members of the intelligence community.

Beginning Jan. 1, 2026, the standard mileage rates for the use of a car, van, pickup or panel truck will be:

• ✓ 5 cents per mile driven for business use, up 2.5 cents from 2025.
• ✓ 5 cents per mile driven for medical purposes, down a half cent from 2025.
• ✓ 5 cents per mile driven for moving purposes for certain active-duty members of the Armed Forces (and now certain members of the intelligence community), reduced by a half cent from last year.
• ✓ 14 cents per mile driven in service of charitable organizations, equal to the rate in 2025.

The rates apply to fully-electric and hybrid automobiles, as well as gasoline and diesel-powered vehicles. While the mileage rate for charitable use is set by statute, the mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes, meanwhile, is based on only the variable costs from the annual study.

Under the law, taxpayers cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses, except for certain educator expenses. However, deductions for expenses that are deductible in determining adjusted gross income remain allowable, such as for certain members of a reserve component of the Armed Forces, certain state and local government officials, certain performing artists, and eligible educators. Alternatively, eligible educators may claim an itemized deduction for certain unreimbursed employee travel expenses. In addition, only taxpayers who are members of the military on active duty or certain members of the intelligence community may claim a deduction for moving expenses incurred while relocating under orders to a permanent change of station.

Use of the standard mileage rates is optional. Taxpayers may instead choose to calculate the actual costs of using their vehicle.

Taxpayers using the standard mileage rate for a vehicle they own and use for business must choose to use the rate in the first year the automobile is available for business use. Then, in later years, they can choose to use the standard mileage rate or actual expenses.

For a leased vehicle, taxpayers using the standard mileage rate must employ that method for the entire lease period, including renewals.

Notice-2026-10 contains the optional 2026 standard mileage rates, as well as the maximum automobile cost used to calculate mileage reimbursement allowances under a fixed-and variable rate plan. The notice also provides the maximum fair market value of employer-provided automobiles first made available to employees for personal use in 2026 for which employers may calculate mileage allowances using a cents-per-mile valuation rule or the fleet-average-valuation rule.

What taxpayers can do to Get Ready for the 2026 tax filing season

December 9, 2025

WASHINGTON - The new year is less than a month away which means the 2026 tax filing season is drawing near. The IRS encourages taxpayers to "Get Ready" and start preparing now. Taking a few steps today can save time and help taxpayers ensure they’re filing accurate returns in the coming months.

The annual IRS Get Ready campaign is a series of tips, reminders and new information for taxpayers on what they need to know in preparation for filing season. For example, the One, Big, Beautiful Bill brings several changes or additions that can significantly affect federal taxes, credits and deductions. Tax deductions for tips, overtime, car loan interest and seniors are just a few of many recent updates.

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401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500

November 14, 2025

WASHINGTON - The Internal Revenue Service announced today that the amount individuals can contribute to their 401(k) plans in 2026 has increased to $24,500, up from $23,500 for 2025.

The IRS today also issued technical guidance regarding all cost-of-living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2026 in Notice 2025-67, posted today on IRS.gov.

Highlights of changes for 2026

The annual contribution limit for employees who participate in 401(k), 403(b), governmental 457 plans, and the federal government's Thrift Savings Plan is increased to $24,500, up from $23,500 for 2025.

The limit on annual contributions to an IRA is increased to $7,500 from $7,000. The IRA catch-up contribution limit for individuals aged 50 and over was amended under the SECURE 2.0 Act of 2022 (SECURE 2.0) to include an annual cost-of-living adjustment is increased to $1,100, up from $1,000 for 2025.

The catch-up contribution limit that generally applies for employees aged 50 and over who participate in most 401(k), 403(b), governmental 457 plans, and the federal government's Thrift Savings Plan is increased to $8,000, up from $7,500 for 2025. Therefore, participants in most 401(k), 403(b), governmental 457 plans and the federal government's Thrift Savings Plan who are 50 and older generally can contribute up to $32,500 each year, starting in 2026. Under a change made in SECURE 2.0, a higher catch-up contribution limit applies for employees aged 60, 61, 62 and 63 who participate in these plans. For 2026, this higher catch-up contribution limit remains $11,250 instead of the $8,000 noted above.

The income ranges for determining eligibility to make deductible contributions to traditional Individual Retirement Arrangements (IRAs), to contribute to Roth IRAs and to claim the Saver's Credit all increased for 2026.

Taxpayers can deduct contributions to a traditional IRA if they meet certain conditions. If during the year either the taxpayer or the taxpayer's spouse was covered by a retirement plan at work, the deduction may be reduced, or phased out, until it is eliminated, depending on filing status and income. (If neither the taxpayer nor the spouse is covered by a retirement plan at work, the phase-outs of the deduction do not apply.) Here are the phase-out ranges for 2026:

• ✓ For single taxpayers covered by a workplace retirement plan, the phase-out range is increased to between $81,000 and $91,000, up from between $79,000 and $89,000 for 2025.
• ✓ For married couples filing jointly, if the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range is increased to between $129,000 and $149,000, up from between $126,000 and $146,000 for 2025.
• ✓ For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the phase-out range is increased to between $242,000 and $252,000, up from between $236,000 and $246,000 for 2025.
• ✓ For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains between $0 and $10,000.

Other phase-out ranges and limitations

The notice also provides limitations for 2026 for Roth IRAs, the Saver's Credit and SIMPLE retirement accounts.

• ✓ The income phase-out range for taxpayers making contributions to a Roth IRA is increased to between $153,000 and $168,000 for singles and heads of household, up from between $150,000 and $165,000 for 2025. For married couples filing jointly, the income phase-out range is increased to between $242,000 and $252,000, up from between $236,000 and $246,000 for 2025. The phase-out range for a married individual filing a separate return who makes contributions to a Roth IRA is not subject to an annual cost-of-living adjustment and remains between $0 and $10,000.
• ✓ The income limit for the Saver's Credit (also known as the Retirement Savings Contributions Credit) for low- and moderate-income workers is $80,500 for married couples filing jointly, up from $79,000 for 2025; $60,375 for heads of household, up from $59,250 for 2025; and $40,250 for singles and married individuals filing separately, up from $39,500 for 2025.
• ✓ The amount individuals can generally contribute to their SIMPLE retirement accounts is increased to $17,000, up from $16,500 for 2025. Pursuant to a change made in SECURE 2.0, individuals can contribute a higher amount to certain applicable SIMPLE retirement accounts. For 2026, this higher amount is increased to $18,100, up from $17,600 for 2025.
• ✓ The catch-up contribution limit that generally applies for employees aged 50 and over who participate in most SIMPLE plans is increased to $4,000, up from $3,500 for 2025. Under a change made in SECURE 2.0, a different catch-up limit applies for employees aged 50 and over who participate in certain applicable SIMPLE plans, which remains $3,850. Under a change made in SECURE 2.0, a higher catch-up contribution limit applies for employees aged 60, 61, 62 and 63 who participate in SIMPLE plans, which remains $5,250.

Details on these and other retirement-related cost-of-living adjustments for 2026 are in Notice 2025-67, available on IRS.gov.

IRS Operations During the Lapse in Appropriations

November 2, 2025

WASHINGTON - Tax professionals should be aware of the following during the current lapse in appropriations due to limited IRS operations:

• ✓ Tax refunds. Generally, the IRS will not pay refunds. One key exception exists: the IRS will continue to pay individual refunds for your clients who requested direct deposit on their Forms 1040 if the client electronically filed the tax returns, the returns are error-free, and the returns can be automatically processed. The IRS urges tax professionals to electronically file their clients’ returns with direct deposit to avoid delays.
• ✓ Payments. The IRS will accept and process any payments and remittances received, whether received electronically or by mail.
• ✓ Correspondence. The IRS generally will not be responding to paper correspondence. Tax professionals who mail in correspondence to the IRS during this period should expect a delay for a response after full government operations resume due to a growing correspondence backlog.
• ✓ Telephones. Only limited live IRS telephone customer service assistance will be available; however, most automated toll-free telephone applications will remain operational.
• ✓ Taxpayer appointments. The IRS’s walk-in Taxpayer Assistance Centers (TACs) are closed. Appointments are cancelled until the government reopens. Likewise, appointments related to the Independent Office of Appeals or Taxpayer Advocate Service cases are cancelled. IRS personnel will reschedule those meetings when the government reopens.
• ✓ Transcripts. Tax professionals needing historical filing information can use automated tools to request tax transcripts. In addition, the IRS will process transcript requests related to disaster relief.
• ✓ Income verification. The IRS Income Verification Express Service (IVES) will remain available.
• ✓ Tax-exempt groups. The IRS will not process applications or determinations for tax-exempt status or pension plans.
• ✓ Enforcement activity. Criminal Investigation work continues during this period, as does compliance work related to protecting statutes of limitations.
• ✓ 2026 filing season. The IRS will continue some critical operations during this period to be ready for tax professionals and their clients. These critical operations include testing and preparation of filing season programs and related issues.

Tax professionals and their clients should continue using the tools on IRS.gov, including Tax Pro Account, online account for individuals and Business Tax Account. The following resources can help tax professionals market and set up IRS online accounts:

The notice also provides limitations for 2026 for Roth IRAs, the Saver's Credit and SIMPLE retirement accounts.

• ✓ How to register for IRS online self-help tools
• ✓ Publication 5533, Access Your IRS Individual Online Account [PDF]
• ✓ Publication 5533-A, Tax Professionals: Save Time with The Tax Pro Account [PDF]
• ✓ Publication 5533-B, Tax Professionals: How to Manage Authorizations Using Tax Pro Account [PDF]
• ✓ Publication 5904, Access Your Business Tax Account [PDF]
• ✓ ID.me Help Center

One Big Beautiful Bill Act: Tax deductions for working Americans and seniors

July 15, 2025

WASHINGTON - Review the new provisions from the One Big Beautiful Bill Act, signed into law on July 4, 2025, as Public Law 119-21, that go into effect for 2025. This includes information on "no tax on tips", "no tax on overtime", "no tax on car loan interest", and deductions for seniors.

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