Tax season may feel far off, but the IRS is encouraging taxpayers to start preparing now – and for good reason. With major tax law changes underway, a little advance planning can go a long way toward avoiding delays, errors, and unnecessary stress when it’s time to file.
As the 2026 filing season approaches, early preparation is especially important due to the implementation of H.R.1 – also known as the One Big Beautiful Bill Act – which introduces several new deductions, sunsets others, and changes how refunds and payments are handled. While the IRS is still releasing guidance, there’s plenty taxpayers can do now to stay ahead.
Key Changes Under the “One Big Beautiful Bill” Act
H.R.1 introduces new deductions and adjustments that may affect how much tax you owe – or how much you get back. Among the most notable provisions are:
No tax on certain tips and overtime income
No tax on qualifying car loan interest
A new senior deduction for eligible taxpayers
Changes to energy-related credits and deductions
Because not every provision applies to every taxpayer, it’s important to review how these changes intersect with your income, filing status, and deductions.
Time to Get Organized!
One of the most effective ways to prepare for tax season is simply getting organized ahead of time. Missing or incomplete documentation is one of the most common causes of filing errors and refund delays.
Some important things to keep on hand:
Bank account information. Direct deposit is now the primary way refunds are issued, and paper checks are being phased out. Having your routing and account numbers ready is essential.
W-2 forms. These report wages and withholding and are generally issued by employers by January 31.
1099 forms. These report income outside of traditional wages, including self-employment income, interest, dividends, government payments, and income received through payment apps or online marketplaces.
Records of digital asset transactions. Cryptocurrency sales, transfers, and exchanges will need to be reported, even if a platform does not issue a form.
Form 1099-K: What to Expect
Taxpayers who receive payments for goods or services through online platforms should be aware of Form 1099-K. If you received more than $20,000 in payments across more than 200 transactions during 2025, you can expect to receive this form in January 2026.
It’s key to note that the form doesn’t create new tax liability. All income from side work, part-time jobs, or selling goods and services is already taxable unless excluded by law, regardless of whether you receive a Form 1099-K, 1099-NEC, or other information returns. Reconciling the 1099-K with your own records is critical to ensure you report the correct amount of income – and avoid reporting amounts that weren’t actually taxable. Good record-keeping is your best defense here!
Refund Timing and Direct Deposit
Most refunds are still issued within 21 days, but timing can vary. Returns that claim credits like the Earned Income Tax Credit or Additional Child Tax Credit cannot be issued before mid-February. Other returns may require manual review due to missing information or identity theft safeguards.
Another major shift: the IRS has begun phasing out paper refund checks as part of a broader move toward electronic payments. For tax year 2025 and beyond, taxpayers should expect refunds to be issued via direct deposit or electronic funds transfer in most cases. Online payment options are also becoming the preferred method for paying taxes, fees, and penalties.
Check Your Withholding and Estimated Payments
If you owed taxes last year – or received a large refund – it may be time to revisit your withholding. Life changes like marriage, divorce, a new child, credit adjustments, or a second job can all affect how much tax should be withheld from your paycheck.
Taxpayers with significant non-wage income, such as self-employment income, investments, or taxable Social Security benefits, may also need to make quarterly estimated tax payments to avoid penalties.
Take Action Now
Preparing for tax season doesn’t have to be overwhelming – but it does benefit from starting early! Organizing documents, reviewing withholding, and understanding how new laws apply to your situation can go a long way toward a smoother filing experience.
At Angolano & Company, we’re here to help clients translate these changes into smart, proactive tax strategies. Reach out anytime to discuss how these updates may affect your return – and how planning now can make tax season less stressful.