Tax season is arriving with a clear message from Washington: the government wants refunds and payments moving faster, safer, and more digitally than ever. For Americans filing 2025 tax returns in 2026, several updates stand out—not because they’re complicated, but because they change what “normal” looks like when you’re expecting a refund or planning deductions.
The biggest operational shift is how refunds are delivered—and it’s coming straight from the top. An Executive Order signed by Donald Trump directs federal agencies to modernize payments to and from Americans by moving away from paper-based systems. In line with that order, the IRS is phasing out paper refund checks for individual taxpayers, steering filers toward direct deposit and other electronic payment methods designed to reduce fraud, delays, and administrative costs.
Policy changes are also landing just as millions of households file. One of the most notable is a new deduction for car loan interest introduced under the One Big Beautiful Bill (OB3). Treasury and IRS guidance outlines a deduction that may apply even if you take the standard deduction, potentially benefiting taxpayers who purchased eligible new, made-in-America vehicles in 2025—subject to income limits and other qualifications.
Even the basics have shifted. For the 2025 tax year, the standard deduction is higher across all filing statuses, and eligible seniors may qualify for an additional deduction under new rules. These changes mean taxable income calculations could look different for many filers before credits and other deductions are even factored in.
The practical takeaway is simple: if you expect a refund, now is the time to ensure your electronic payment information is up to date. And if you made major financial decisions in 2025—such as buying a vehicle or transitioning into retirement—it’s worth taking a closer look at what you may newly qualify for. This tax season isn’t just about filing—it’s about adapting to a system that’s rapidly going digital.
