White House officials have projected larger refunds this year.
The 2026 tax filing season is due to start in January as Trump administration officials have predicted that it will lead to significant tax refunds for most Americans.
However, several other changes will be coming as taxpayers start to file their taxes in the coming weeks. The tax filing start date has not yet been officially announced, although it’s expected to start in late January.
Direct File No More
The IRS Direct File, an electronic system for filing tax returns established under the Biden administration, will not be offered in 2026, officials have said.
Treasury Secretary Scott Bessent, who is also the IRS commissioner, said in November that the service “wasn’t used very much” and “better alternatives” exist.
The Direct File pilot program was started in tax year 2023, and as of April 20, 2025, 296,531 returns were filed by users and accepted by the tax agency through the program, according to a recent Treasury Department report.
New Mileage Rates Coming
The IRS announced Monday that beginning Jan. 1, the standard mileage rate for a qualifying vehicle will be 72.5 cents per mile, up 2.5 cents from 2025.
The rate will be 20.5 cents per mile driven for medical purposes, down a half cent from 2025 and will be 20.5 cents per mile driven for moving purposes for certain active-duty members of the military and certain members of the intelligence community, a half-cent reduction from last year.
The change, meant to reflect updated cost data and annual inflation adjustments, applies to fully electric and hybrid automobiles, and gas and diesel-powered vehicles.
Larger Refunds Likely Coming, Officials Say
Officials including Treasury Secretary Scott Bessent have predicted that American workers will see greater spending power due to tax refunds that were included in a federal law that was passed over the summer.
Speaking to the “All-In Podcast” last week, Bessent said that workers will see changes to their tax withholdings starting next year due to a provision under the One Big Beautiful Bill Act.
“They will change their withholding schedule at the beginning of the year and they will get an automatic increase in real wages,” he said. “So I think that’s going to be a very powerful combo.”
The Trump administration-backed One Big Beautiful Bill Act contains several income tax provisions including an increase to the child tax credit, an increase to the standard deduction, a state and local tax (SALT) deduction limit, and also deductions on auto loan interest. Other provisions include tax cuts on overtime and tip income as well as a new deduction for seniors who receive Social Security payments and have to pax taxes on those earnings.
The secretary also again predicted that households will see $1,000 to $2,000 in refunds next year.
“I think that’s going to be a very powerful combo of corporate and individuals,” he said, referring to taxes.
The CEO of the IRS, Frank Bisignano, also said in an interview with Fox Business that around 94 percent of middle-class taxpayers will see higher returns.
