IRS Tax Filing Season Opens January 26 2026 with Obbba Changes

The IRS tax filing season for tax year 2025 returns (filed in 2026) opened on January 26, 2026. The single most important requirement this year is getting your filing status right (resident vs. nonresident for U.S. tax purposes) and matching it to the correct return.

For immigrants and visa holders, this comes up constantly. Your immigration status does not automatically control your U.S. tax status.

The IRS generally uses the Green Card Test or the Substantial Presence Test. The details are in IRS Publication 519 at irs.gov/pub/irs-pdf/p519.pdf.

📅 Deadline Alert: An extension gives you more time to file, not more time to pay. If you may owe tax, pay by the April due date to limit interest and penalties.

A quick note on timing: Many readers are already thinking about tax year 2026 (returns filed in 2027). That season is next year.

This guide is for 2025 returns filed in 2026, reflecting rules in effect as of Monday, January 26, 2026.

1) Who needs to file (and which form you likely need)

Eligibility checklist (immigrants and visa holders)

Income filing trigger (high-level)

If you are a resident alien for tax purposes, you generally follow the same filing expectations as U.S. citizens. Many taxpayers must file if gross income exceeds the standard deduction for their filing status, or if special rules apply.

If you are a nonresident alien, you generally file if you had:

• Effectively Connected Income (ECI) from a U.S. trade or business
• Certain U.S.-source income with tax due
• A refund claim due to U.S. withholding

For treaty positions, review IRS Publication 901 on irs.gov and keep records that support residency and income sourcing.

2) Key deadlines, extensions, and refund timing realities

The filing season opening date means the IRS begins accepting and processing returns. Many people can file right away.

Others may need to wait for final IRS form instructions or software updates, especially with new schedules tied to recent law changes.

How deadlines and extensions work

• The regular filing deadline is the due date for most individuals.
• Form 4868 gives an automatic extension to file.
• The extension does not extend the time to pay.

If you file from abroad, you may qualify for special rules. Publication 519 covers common alien-specific timing issues.

Refund timing: what actually moves the needle

Refund speed depends less on “filing early” and more on avoiding delays. The biggest drivers are:

• E-file vs. paper: E-file is typically faster and reduces transcription errors.
• Direct deposit vs. check: Direct deposit is generally faster.
• Errors and mismatches: Name/SSN mismatches, missing schedules, or math errors slow processing.
• Identity verification: Some returns get pulled for extra checks.
• Credit-related holds: Certain refundable credits can delay refunds by law.

If you claim refundable credits such as the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC), the IRS can legally hold those refunds until it completes required reviews. That timing is often later than standard refunds.

Tracking your refund safely

Use Where’s My Refund at irs.gov/refunds. For e-filed returns, status can appear relatively quickly.

Paper-filed returns often take much longer before the first status appears. For account transcripts and identity verification prompts, use the IRS Online Account at irs.gov/account.

3) One Big Beautiful Bill Act (OBBBA): changes that affect 2025 returns

The One Big Beautiful Bill Act (OBBBA), enacted in July 2025, created retroactive changes that show up on 2025 returns filed in 2026. The practical impact is more documentation requests from preparers and more questions in tax software.

One headline change is the addition of new or updated forms and schedules, including a new Schedule 1-A for certain claims. If your situation touches tips, overtime, itemized deductions, or new deductions, expect extra worksheets and recordkeeping.

A) “No tax on tips” and “no tax on overtime” claims

These provisions are aimed at workers whose compensation includes tips or overtime pay. What to do:

• Keep paystubs, year-end wage statements, and employer summaries.
• Confirm how the amounts are reported on your wage forms.
• Expect your software or preparer to ask targeted questions.
• Watch for a Schedule 1-A requirement for the claim.

Immigration note: Many visa holders in service and hospitality roles are students or recent graduates. Your resident vs. nonresident status still controls which return you file.

B) Car loan interest (where applicable)

Some taxpayers may see a new deduction path tied to auto loan interest. Keep the loan statement showing interest paid, the vehicle purchase documents, and proof the loan qualifies under the updated rules.

Expect this to run through new schedules if you qualify.

C) SALT deduction change for itemizers

If you itemize deductions, the state and local tax (SALT) deduction cap increased. It moved from $10,000 to $40,000 under the change described for 2025 returns.

Who feels this most:

• Itemizers in higher-tax states
• Homeowners with larger property tax bills
• Taxpayers who already exceed the prior cap

This generally runs through Schedule A (Form 1040). You must choose between itemizing and taking the standard deduction.

D) Senior deduction concept (temporary)

A new senior-related deduction concept applies for taxpayers age 65+, with a rule tied to Social Security taxation. The amounts referenced for 2025 returns are $6,000 (single) and $12,000 (married filing jointly), and it is described as temporary through 2028.

Even if you qualify, you still need to confirm eligibility details, keep SSA benefit statements (Form SSA-1099), and watch how your software applies the rule, often through Schedule 1-A.

E) Dependent documentation: SSN/ITIN timing matters

If you claim a dependent, the IRS rules can require that the dependent’s SSN or ITIN be issued by the return due date to claim certain credits.

This is a common issue for immigrant families with newborn children, children arriving mid-year, pending SSNs, or ITIN applications. Plan early if you need an ITIN.

ITIN applications typically use Form W-7, often filed with the return and original identification documents or certified copies.

⚠️ Warning: Don’t assume you can “add the SSN later.” For some credits, missing SSNs/ITINs by the due date can reduce or eliminate the credit.

F) “Trump Accounts” for minors (high-level)

The law introduces a concept described as an IRA-style account for children under 18. If you are a parent or guardian:

• Confirm the account structure with the financial institution.
• Keep contribution records and account statements.
• Ask how reporting will appear on tax forms, if applicable.

4) OBBBA change impact map: who should double-check what

Eligibility can be narrow. It depends on filing status, income, and documentation. When in doubt, verify the final IRS instructions for the schedule involved.

5) Step-by-step filing process (with forms)

Step 1: Confirm your U.S. tax residency for 2025

1. Start with Publication 519. Review the Green Card Test and Substantial Presence Test.
2. If you changed status mid-year, consider dual-status rules.
3. If a treaty tie-breaker applies, document it carefully.

Step 2: Pick the correct return

• Form 1040 for residents.
• Form 1040-NR for nonresidents.
• Dual-status filers often submit a Form 1040 with a 1040-NR statement attached, following Publication 519 instructions.

Step 3: Gather income forms and reconcile totals

Common forms include Form W-2 (wages), Forms 1099 (bank interest, dividends, contract work), and Form 1042-S (common for nonresidents and treaty withholding).

Payment apps and marketplaces may issue Form 1099-K. Reconcile totals to your records and separate personal transfers from business receipts.

Step 4: Add OBBBA-related schedules if you qualify

• If claiming tips or overtime relief, expect Schedule 1-A.
• If itemizing and using SALT, use Schedule A.

Step 5: Check foreign account and asset reporting (immigrants)

Many new residents miss these. FBAR (FinCEN Form 114) is required if foreign financial accounts exceeded $10,000 in aggregate at any time during the year. It is filed electronically through FinCEN, not with the IRS.

Form 8938 (FATCA) may apply at higher thresholds. For taxpayers living in the U.S., common thresholds start at $50,000 (single) at year-end or $75,000 at any time. Married thresholds are higher.

Also watch for Form 3520 (certain foreign gifts and trusts), Form 5471 (certain foreign corporations), and Form 8865 (certain foreign partnerships).

Step 6: File electronically when possible, choose direct deposit

E-file plus direct deposit usually reduces delays. Use reputable software or a qualified preparer.

Free options change year to year. The IRS still offers Free File for eligible taxpayers and Free File Fillable Forms for those who can self-prepare. Start at irs.gov/filing/free-file-do-your-federal-taxes-for-free.

Step 7: If you need more time, file Form 4868 and pay what you can

• File Form 4868 by the regular due date.
• Pay as much as possible by the due date to limit charges.

6) Documents you’ll need (categories that prevent delays)

Bring documents from each category below. Missing items are a top cause of amended returns and IRS letters.

• Identity and status: SSNs or ITINs for you, spouse, and dependents; immigration dates for residency testing
• Income: W-2, 1099 series, 1042-S, SSA-1099, and self-employment summaries
• Deductions and credits: property tax bills, mortgage interest statements, charitable receipts, childcare expense records
• OBBBA support: paystubs showing tips and overtime; auto loan interest statements if relevant
• Banking: routing and account numbers for direct deposit
• Prior-year tax return: prior-year AGI can be needed for e-file verification

Authorities, confirmations, and safe next steps

IRS and Treasury leadership have stated that forms and instructions were updated to reflect OBBBA-related changes. In practical terms, that means early-season filing can be smooth for many taxpayers, but complex returns may face more software prompts and IRS validation checks.

Before you file, confirm you are using the latest IRS forms and instructions:

• Forms and instructions portal: irs.gov/forms-pubs
• International taxpayer hub: irs.gov/individuals/international-taxpayers

Also assume scams spike during filing season. The IRS generally initiates contact by mail first. Be skeptical of “urgent” calls, texts, or fake refund trackers.

Action items to do this week

• Confirm resident vs. nonresident status for 2025 using Publication 519.
• Collect paystubs if you may claim tips or overtime relief under OBBBA.
• If claiming dependents, confirm SSN/ITIN issuance timing before you file.
• If you have foreign accounts, determine if FBAR ($10,000 aggregate) applies.
• Use irs.gov/account and irs.gov/refunds for official status checks.

⚠️ Disclaimer: This article is for informational purposes only and does not constitute tax, legal, or financial advice. Tax situations vary based on individual circumstances. Consult a qualified tax professional or CPA for guidance specific to your situation.