The 2026 tax season 2026 is underway, and there’s plenty for investors to think about. Indeed, with President Trump’s reelection ushering in the One Big Beautiful Bill, Uncle Sam is handing out fresh deductions like tips, overtime, and car loan interest. That’s great for the average Joe and Jane looking to capitalize on what could be one of the most prosperous tax return seasons in a long time.
The thing is, it’s important for investors not to get sloppy. Instead, focusing on finding ways to maximize one’s refund with these three top IRS tips for a prosperous filing can provide significant benefit to those thinking long-term.
I’ve done the research and crunched the numbers on this topic, with early data showing average refunds are up roughly 14% from 2025. Here’s how I’d suggest investors go about capturing as much of the additional tax benefits they’re eligible for this tax return season.
Get Your Receipts Ready Ahead of Time
I think it’s generally a great idea to have as much of an automated process as possible with doing one’s taxes. Indeed, one of the key tools I use with putting my own return together is to utilize many of the free downloads most banking and credit card accounts provide, to categorize spending accordingly and ensure I don’t miss anything.
That said, it’s important to stack as many of those receipts as possible, for the scenario that can arise when one’s tax return is audited. For those looking to capture the new tax breaks assigned to tips and overtime, ensuring those paycheck stubs and tip receipts are kept in either digital or physical storage is important.
Indeed, the IRS hammers this in their Get Ready campaign: sorted records spot overlooked credits and dodge audit flags. Tipped workers may have some of the most daunting work ahead in that regard, but also the most upside. With many tipped workers expected to receive as much as $1,400 on average in terms of tax breaks, the time spent on this activity can be well worth the squeeze. Ensuring one has all forms lined up as necessary to calculate one’s tax burden appropriately is a great place to start.
Take Care of the Administrative Stuff Early
Ditch paper returns like it’s 1985. I think that’s advice most investors can get on board with.
Indeed, e-filing with direct deposit provides most investors with 90% of refunds in under 21 days. That’s at least according to existing IRS data – every return is different, and the processing timelines can vary depending on certain key factors.
That said, assuming investors don’t have any major red flags on their return, most returns can be processed relatively quickly, so getting the administrative stuff taken care of early (such as setting up one’s e-file and online account with the IRS) can cut claims time down significantly.
Additionally, IRS Free File lets most folks prep gratis if adjusted gross income dips below $79,000. Procrastinators who often find themselves behind the ball come tax season, and struggle to get that return in early, may want to do so this year given the advantageous tax breaks being provided.
Find More Deductions: Perhaps Talk to a Tax Professional
Hunting for tax deductions is one of my personal favorite pastimes. That said, I’m also aware that we don’t know what we don’t know, and I personally use a CPA for this reason.
With the so-called “Big Beautiful Bill” set to turbocharge 2026 refunds, there are plenty of deductions investors may not be aware they’re eligible for. Whether that’s deducting tips, overtime pay, auto loan interest, even extras for seniors 65+ via Schedule 1-A, there’s plenty to be considered this time around.
For low-income filers under the standard deduction ($15,750 single, $31,500 joint), it’s important to consider filing for Earned Income Tax Credit boosts. Other key pieces of advice I’ve come across I see as very valuable to the average individual or household is to review one’s return twice. That’s because many of the most important red flags that can come up can arise due to typos or simple mistakes. It would be a shame to have one’s refund delayed because a little extra due diligence wasn’t followed.
Of course, there are myriad financial advisors and tax experts online with more tips and tricks than these. That said, in navigating what can be a rather dysfunctional IRS maze, acting as soon as possible to file a return (filing opened January 27) can amplify one’s prospects of having a return processed quicker, getting those funds out of the hands of the government and into your pockets as soon as possible.
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