Tax season for the 2026 filing year is now open, with the Internal Revenue Service preparing to process returns from approximately 164 million individuals by mid-April. After averaging $3,167 in refunds during the previous year, taxpayers may benefit from increased refunds this cycle, projected to be around $1,000 greater, a result attributed to recent revisions in the tax code.
In the previous year, the IRS handled more than 165 million federal individual income tax returns, of which 94% were submitted electronically. Those submitting straightforward returns electronically should not expect significant delays. However, a substantial reduction in IRS personnel over recent years, especially since the Trump administration's onset, has raised alerts from the national taxpayer advocate. Issues could arise for filers who face complications or require extra support during this season.
The impact of workforce reductions is pronounced: starting 2025 with roughly 102,000 employees, the IRS finished the year with about 74,000 staff following layoffs and firings, a move implemented by the Department of Government Efficiency. These staffing changes come after a period when IRS employees were not allowed to accept buyouts prior to the tax deadline.
Timeline for Refunds
The IRS indicates that electronically filed returns typically result in refunds delivered within 21 days or less. Using direct deposit expedites the process even further. Paper returns usually require 28 days or more to process, and returns needing amendments will understandably take longer. Taxpayers are cautioned not to depend heavily on a specific refund date, particularly for making large financial commitments or settling important bills.
Monitoring Refund Status
To track refunds, taxpayers can access the "Where’s My Refund?" online tool within 24 hours after electronic submission and generally within four weeks for paper filings. This tool also projects refund deposit dates for early claimants of Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC), usually by February 21. Updates occur once daily, overnight.
Accessing refund status requires the filer’s Social Security number or individual taxpayer identification number (ITIN). Additional options for checking include the IRS2Go mobile app and the IRS Individual Online Account system.
Refund Eligibility and Filing Requirements
Refunds are issued when the amount withheld or paid in taxes throughout the year exceeds the taxpayer’s liability. Refunds may also be granted if a taxpayer qualifies for refundable credits despite not overpaying taxes. Notably, EITC and Child Tax Credits constitute refundable credits.
Filing a tax return is necessary to claim any refund; taxpayers have a three-year window to file for refunds after the relevant tax year.
Earned Income Tax Credit Eligibility
Eligibility for the EITC requires investment income not exceeding $11,950 and earning income below certain thresholds. For single filers without children, this threshold is an income of $19,104 or less, while for joint filers with three or more children, income must be $68,675 or below. An online EITC Assistant tool helps determine eligibility based on household income, marital status, and dependents.
Child Tax Credit and Additional Child Tax Credit Qualifications
Taxpayers with qualifying children are likely eligible for the Child Tax Credit, worth up to $2,200 per qualifying child. To qualify, conditions include the child's possession of a Social Security number, being under 17 at the end of 2025, relation to the filer (covering children, siblings, foster children, and descendants thereof), not providing over half their own support, residing with the filer more than half the year, dependency status, non-filing of a joint return (unless solely to claim a refund), and U.S. citizenship or residency status.
Full credit eligibility and the Additional Child Tax Credit depend on annual income caps ($200,000 for single filers, $400,000 for joint filers) and other factors such as having earned income of at least $2,500 for the ACTC.
Schedule for Credit Refund Availability
The IRS anticipates most EITC, Child Tax Credit, and Additional Child Tax Credit refunds will reach recipients’ bank accounts or debit cards by March 2 when direct deposit is selected. Refunds could arrive sooner depending on the financial institution.
Key Policy Updates for This Tax Year
Starting this year, the IRS requires taxpayers to provide banking routing and account numbers to receive refunds via direct deposit, reflecting a shift away from paper refund checks following an executive order implemented on September 30. This change aims to modernize and improve the efficiency of refund processing.