With the April 15 tax deadline fast approaching, the Internal Revenue Service reminds taxpayers that there is still time to file their federal income tax return electronically and request direct deposit for any refund due. Taxpayers can avoid interest and some penalties by filing their tax return, and if they owe, paying the full amount due by the deadline.

The Internal Revenue Service published, for tax year 2025, a new schedule that taxpayers will use to realize important tax benefits of the One, Big, Beautiful Bill, including no tax on tips, no tax on overtime, no tax on car loans, and no tax on seniors. Schedule 1-A PDF and its related instructions (included in the Form 1040 Instructions PDF) allow taxpayers to deduct amounts for tips, overtime, car loans, and the enhanced deduction for seniors. Part II of the new instructions explains how to determine the amount of qualified tips, how to claim the deduction, up to $25,000, and the phaseout for modified adjusted gross income greater than $150,000 ($300,000 for married taxpayers filing joint returns). Workers can claim this deduction whether they claim the standard deduction or itemize. Part III of the new instructions explains how certain workers can claim a deduction for overtime compensation they received. Married taxpayers must file a joint return to claim this deduction. Workers can claim this deduction whether they claim the standard deduction or itemize. Part IV of the new instructions explains how taxpayers can claim a deduction for car loan interest. Taxpayers can deduct qualified passenger vehicle loan interest whether they claim the standard deduction or itemize. The instructions define the terms “qualified passenger vehicle loan interest,” “applicable passenger vehicle,” “final assembly in the United States,” and “personal use,” and provide an example. Part V describes the enhanced deduction for seniors, which can be claimed whether they take the standard deduction or itemize; to claim the deduction, married couples must file jointly.

IR-2026-37, March 20, 2026 WASHINGTON ― The Internal Revenue Service today announced that over 1.3 million people across the nation have unclaimed refunds for tax year 2022 and face an April 15 deadline to submit their tax returns. The IRS estimates that approximately $1.2 billion in refunds remains unclaimed for taxpayers who have not filed their Form 1040 Federal income tax return for the 2022 tax year. The IRS estimates the median refund amount is $686 for 2022, which means that half of the refunds are more than $686. This estimate does not include credits that may be applicable. Under the law, taxpayers usually have three years to file and claim their tax refunds. If they do not file within three years, the money becomes the property of the U.S. Treasury.

Taxpayers who owe taxes or have not yet filed can benefit from acting early. Taking the steps outlined below can help limit penalties and interest, prevent delays, and make it easier to resolve tax issues. Step 1: Prepare to file your return Before filing, taxpayers should review their return to ensure all income is reported and deductions are claimed correctly, including any deductions reported on Schedule 1-A. Taxpayers should keep records that support the amounts on their returns, such as pay statements or other documentation. Step 2: Review your return before filing Taxpayers who have not yet filed required returns should file as soon as possible, even if they cannot pay the full amount they owe. Filing allows taxpayers to: - Claim available deductions and credits - Reduce failure-to-file penalties - Access payment and resolution options Electronic filing remains the fastest and most accurate way to submit a return. The IRS encourages taxpayers to file electronically to ensure timely delivery of their returns. Step 3: Make a payment, even if it is partial Taxpayers who owe taxes are encouraged to pay as much as they can by the deadline. Paying even part of the balance can reduce penalties and interest. Electronic payment options are available through IRS.gov. Step 4: Set up a payment plan, if needed Taxpayers who cannot pay their full balance may qualify for a payment plan. Many taxpayers can: - Request an installment agreement online - Choose a payment schedule that fits their situation Setting up a payment plan early can help prevent balances from growing. Step 5: Respond promptly to IRS notices Taxpayers who receive an IRS notice should read it carefully and respond by the date listed. Notices may request: - Payment - Additional information - Action to correct an issue Responding promptly can help avoid further penalties or delays. ACT EARLY! Acting early gives taxpayers more options and flexibility. Waiting can lead to additional penalties, interest, and delays.

FS-2026-07, March 2026 ― Certain provisions in the One, Big, Beautiful Bill signed into law on July 4, 2025, lessen the tax burden for gig economy workers. By making certain business deductions permanent, the new law allows gig workers to keep more of what they’ve earned.