What to know at start of 2026 tax season, including new possible deductions, scam warning

Experts say the average return is going up $1,000.

Jan. 29, 2026 at 8:31pm

Got story updates? Submit your updates here. ›

As the 2026 tax season begins, there are several new possible deductions and credits that could significantly increase the average tax refund, according to experts. However, the IRS is also warning about potential tax scams, advising taxpayers to file early and electronically to avoid issues.

Why it matters

The changes to tax deductions and credits for the 2026 tax year could have a major financial impact on many Americans, potentially putting hundreds or thousands of extra dollars in their pockets. At the same time, the threat of tax-related scams remains, so it's important for taxpayers to be vigilant and take steps to protect themselves.

The details

Some of the key changes for the 2026 tax season include an increase in the child tax credit to $2,200 per dependent child under 17, an increase in the state and local tax (SALT) deduction cap to $40,000, and new deductions for those earning qualified tips (up to $25,000) and those in professions that earn overtime (up to $12,500). There is also a new $6,000 deduction for those 65 and older, on top of the standard deduction. Experts say these changes could result in an average refund increase of $1,000 for many filers.

  • The 2026 tax season begins in January 2026.

The players

Lisa Greene-Lewis

A CPA and tax expert with TurboTax.

Steve Bernas

President of the Better Business Bureau.

Got photos? Submit your photos here. ›

What they’re saying

“So, if you're a parent, the child tax credit increase to $2,200 per dependent, child under 17. If you're a homeowner, the state and local income tax and property tax deduction, known as the SALT cap, that increased to $40,000. There are new deductions if you earn qualified tips. You can deduct up to $25,000.”

— Lisa Greene-Lewis, CPA and tax expert with TurboTax (abc7chicago.com)

“What we're seeing is filers will see up to $1,000 increase in their refund depending on your situation.”

— Lisa Greene-Lewis, CPA and tax expert with TurboTax (abc7chicago.com)

“Use strong passwords and two-factor authentication so thieves can't access your tax filing software. Know that the IRS will never call, text or ask for money or your social security number. And file early.”

— Steve Bernas, President of the Better Business Bureau (abc7chicago.com)

What’s next

Filing early and electronically will help taxpayers get their refunds faster and avoid potential scams.

The takeaway

The 2026 tax season brings several new deductions and credits that could significantly boost refunds for many Americans, but taxpayers must also be vigilant against tax-related scams by taking steps like using strong passwords, avoiding unsolicited IRS contacts, and filing their returns early.