The 2026 tax season is in full swing, and for millions of Americans, it’s shaping up to be one of the most complex—and potentially lucrative—filing years in recent memory. With new paperwork, expanded deductions, and sweeping policy changes, taxpayers are navigating a landscape that’s been dramatically reshaped by legislative and administrative shifts at both the federal and state levels. Yet, even as the promise of larger refunds hangs in the air, many filers are bracing for delays, thanks to a perfect storm of IRS staffing shortages, regulatory updates, and lingering backlogs from last year’s government shutdown.
Let’s break down what’s new, what’s changed, and what you need to know if you’re still waiting for your refund.
According to The Economic Times, the 2026 tax season brings with it a slew of new deductions and credits, courtesy of President Donald Trump’s tax and spending package passed in July 2025. These changes, which are retroactive to January 1, 2025, mean millions of households could see significant differences in how they file—and how much they get back. The federal deadline to file 2025 income tax returns is April 15, 2026, a date shared by New York state returns as well. Filing early, electronically, and opting for direct deposit are still the fastest ways to see that refund hit your account.
But what’s causing this year’s delays? USA TODAY and other outlets report that a Department of Treasury memo, published January 26, 2026, pointed squarely at the 2025 government shutdown and a persistent processing backlog as main culprits. During the shutdown, only about 23,000 of the IRS’s 39,000 key filing season staff were exempted from furlough, kept on the job with funding from the Inflation Reduction Act of 2022. “Inventory that is not worked during the current processing year will be carried into the 2026 Filing Season and may affect the IRS’s ability to timely process tax returns during the filing season, especially with reduced staff,” the Treasury warned.
And reduced staff is no exaggeration. The IRS started 2025 with roughly 102,000 employees and finished with about 74,000—a 27% reduction, according to the National Taxpayer Advocate’s 2025 Annual Report to Congress, cited by the IRS itself. Some of the hardest-hit departments include Direct File (down 88.46%), Enterprise Case Management (down 76.47%), and the Office of Civil Rights and Compliance (down 51.98%). The Taxpayer Advocate Service, a lifeline for those facing complex issues, lost over a quarter of its staff. These cuts have real consequences, slowing down everything from case reviews to appeals and customer support.
There’s more paperwork this year, too. The new two-page Schedule 1-A (Form 1040) is now required for taxpayers claiming a raft of new deductions: qualified overtime pay, tip income, car loan interest, and a special tax break for those age 65 and older. Miss this form, and you could see your refund delayed—or reduced. For those in New York, the Empire State Child Credit has been expanded to offer up to $330 per child ages 4 to 16 and $1,000 per child under age 4, with no minimum income requirement, as long as you file Form IT-213. These changes are designed to put more money back in the hands of families, but they also mean more eligibility rules and more paperwork to get right.
Other new federal tax breaks this year include increased standard deductions, a $6,000 deduction for seniors, and new exclusions for tips and qualified overtime (with maximum deductions of $25,000 and $12,500 respectively, or $25,000 for joint filers). There’s also a new deduction for car loan interest (up to $10,000 annually), expanded health savings account options, and a boosted adoption credit of up to $5,000. Some taxpayers will also encounter Form 4547 if they’re enrolling in a Trump Account.
With all these changes, accuracy is more important than ever. The IRS says most refunds for accurate, complete, electronically filed returns with direct deposit are issued within 21 days. Many arrive even sooner. But paper returns? Expect to wait six to eight weeks, and possibly longer if you submit during a peak period or make a mistake. The IRS is also phasing out paper refund checks for most filers, so setting up direct deposit is now more than just a convenience—it’s practically a necessity.
Yet, even the most careful filers can face delays. According to USA TODAY, factors like claiming the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC), errors or incomplete returns, identity theft concerns, or the need for corrections to credits can all trigger additional scrutiny and slow down the process. The time it takes for your bank to post the refund can also add days to your wait.
For those eager to know exactly when their money will arrive, the IRS’s “Where’s My Refund?” tool—available at IRS.gov and via the IRS2Go mobile app—remains the go-to resource. You’ll need your Social Security number (or ITIN), filing status, and the exact refund amount to check your status. The tool updates once daily and shows three stages: Return Received, Refund Approved, and Refund Sent. If you see “Return Received,” processing is underway; “Refund Approved” means payment is scheduled; and “Refund Sent” signals that the money should hit your account soon. The IRS cautions against calling unless the tool specifically instructs you to do so, as phone lines are notoriously jammed during peak season.
Free filing options abound in 2026. Taxpayers earning $89,000 or less in 2025 can use IRS Free File, and New York residents in the same income bracket can file state taxes online for free. The IRS Volunteer Income Tax Assistance (VITA), AARP Foundation Tax-Aide, and Tax Counseling for the Elderly (TCE) programs offer in-person help for those with lower incomes, disabilities, limited English, or seniors. Using these trusted services can reduce errors—a big factor in getting your refund quickly.
For those filing by mail, the U.S. Postal Service recommends requesting a manual postmark at the counter to ensure your return is officially dated the day you drop it off. This can be important if you’re filing close to the deadline and want to avoid late penalties.
About 75% of Americans receive tax refunds annually, and the average refund in 2025 was $2,939, according to the IRS. With this year’s changes, some refunds could be up to 30% larger. For many, that refund is more than just a windfall: “One-third—34%—rely on their tax refund to make ends meet,” according to Credit Karma, as cited by USA TODAY. That makes delays all the more stressful, especially for households counting on that money for immediate needs.
For New Jersey residents, state refunds can be tracked through the New Jersey Treasury, while federal refunds should be checked via the IRS tracker. The same advice applies across the country: file early, file accurately, and use direct deposit whenever possible to minimize the wait.
All told, the 2026 tax season is a study in contrasts: bigger refunds for some, more hoops to jump through for all, and the ever-present risk of delays as the IRS works to dig out from last year’s disruptions. For taxpayers, patience—and a bit of double-checking—will go a long way this year.