The IRS officially begins accepting and processing 2025 tax returns on January 26, 2026. This filing season marks the debut of the “One Big, Beautiful Bill” (OBBBA), which introduces significant retroactive benefits for the 2025 tax year. Business owners and high-net-worth individuals should prioritize early preparation to take advantage of the increased State and Local Tax (SALT) deduction cap of $40,000, permanent 100% bonus depreciation, and new deductions for overtime and tips. The deadline to file and pay is April 15, 2026, though extensions are available until October 15, 2026.
IRS Official Launch: 2025 Tax Returns
The IRS processing cycle for tax returns traditionally signals the start of the financial new year. For 2026, the agency confirmed that systems will go live on January 26. While the IRS Free File program opened early on January 9 for specific income brackets, the general population, including complex business filers, must wait until the 26th for full processing.
Key Deadlines for the 2026 Filing Season
January 15, 2026: Final 2025 estimated tax payment due.
January 26, 2026: IRS begins processing all 2025 tax returns.
March 16, 2026: Deadline for Partnerships and S-Corps’ 2025 tax returns.
April 15, 2026: Individual and C corporation filing deadline and the last day to contribute to an IRA or HSA for 2025.
October 15, 2026: Extended deadline for individual and C corporations’ 2025 tax returns.
The “One Big, Beautiful Bill” (OBBBA): Major 2025 Tax Law Changes
The OBBBA, signed in July 2025, fundamentally reshapes the tax landscape for high earners. Unlike typical legislation, many of these provisions apply retroactively to the income you earned in 2025.
Expanded SALT Deductions for Individuals
The most significant win for individuals is the increase in the State and Local Tax (SALT) deduction limit. The previous $10,000 ceiling has been raised to $40,000 for 2025. Note that this benefit begins to phase out for those with a Modified Adjusted Gross Income (MAGI) exceeding $500,000, eventually bottoming out at the original $10,000 limit.
New “No Tax” Provisions on Schedule 1-A
The IRS has introduced Schedule 1-A to handle the OBBBA’s specific income exclusions.
Overtime and Tips: Workers can deduct up to $12,500 in overtime pay and $25,000 in tip income. These deductions phase out for single filers earning over $150,000.
Car Loan Interest: You may now deduct up to $10,000 in interest paid on loans for U.S.-assembled vehicles.
Senior Deduction: An additional $6,000 deduction is available to taxpayers aged 65 or older, in addition to the standard deduction.
Maximizing Business Benefits in 2026
Business owners find a more stable environment as the OBBBA makes several “temporary” measures permanent.
Permanent Bonus Depreciation and Section 179
The 100% bonus depreciation is back and permanent, allowing for the immediate expensing of capital investments. Furthermore, the Section 179 deduction cap has increased to $2.5 million, providing a powerful tool for reducing businesses’ taxable income.
Qualified Business Income (QBI) Extension
The 20% QBI deduction (Section 199A) was slated to expire but is now permanent. For certain entities, this deduction has been increased to 23%, effectively lowering the top tax rate on pass-through income significantly below the 37% individual rate ceiling.
Real-Time Tracking: Checking Your Tax Return Status
The IRS has upgraded its digital infrastructure to handle the complexities of the OBBBA.
- “Where’s My Refund?” This tool remains the gold standard for tracking. Status updates usually appear 24 hours after an e-filed return is accepted.
- Paper Check Phase-Out: Per the “Modernizing Payments” executive order, the IRS is aggressively moving toward 100% digital disbursements. High earners expecting large refunds must ensure their bank account details are up to date to avoid significant delays.
- Audit Red Flags: With the new Schedule 1-A, the IRS will likely scrutinize “No Tax on Overtime” claims. Ensure your payroll records explicitly differentiate between base salary and overtime hours to survive automated flag systems.
2025 Tax Season FAQ
When is the earliest I can file my 2025 tax return?
You can submit your return via software providers now, but the IRS will not begin processing or issuing a tax return status until January 26, 2026.
Does the new SALT cap apply to my 2025 return?
Yes. The OBBBA increased the SALT deduction to $40,000 retroactively for the 2025 tax year, subject to income phase-outs.
Are “Trump Accounts” available for 2025?
Enrollment begins with your 2025 filing. These are specialized IRAs for children, with contributions starting in July 2026.
Need Help Navigating the 2025 Tax Landscape?
For business owners and high-net-worth individuals, the 2026 filing season is more than a routine deadline; it is a strategic opportunity to leverage the retroactive benefits of the OBBBA. Successfully managing the transition requires more than basic filing; it demands a proactive approach to wealth preservation. Windes provides specialized individual tax preparation for high-net-worth individuals and business tax services for middle-market businesses. We work with you to minimize liabilities and protect assets. Connect with Windes today for the strategic insights and personalized guidance necessary to master these complex tax shifts and secure your financial future.