Tax Season Starts Jan. 26
IRS Opens 2026 Tax Season on Jan. 26: What Homebuyers and Homeowners Should Know
The IRS will officially begin accepting and processing 2025 federal tax returns on January 26, 2026, marking the start of the 2026 tax filing season. The filing deadline remains April 15. This year’s tax season arrives amid staffing reductions at the IRS and new tax law changes, making early preparation especially important—particularly for homebuyers, sellers, and property investors.
Why This Tax Season Matters for Buyers and Sellers
The IRS expects to receive approximately 164 million individual tax returns, similar to last year. However, tax experts have warned that the season could be more challenging due to a smaller IRS workforce and the rollout of recently enacted tax legislation that retroactively affects the 2025 tax year.
For consumers making real estate decisions, tax timing and accuracy can directly influence:
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Mortgage pre-approvals
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Debt-to-income ratios
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Capital gains planning
IRS Staffing Changes Could Impact Processing Times
According to the National Taxpayer Advocate, the IRS workforce has declined by roughly 26%, dropping from over 102,000 employees to about 75,700. While the IRS says it is prepared for the season, fewer staff members could mean:
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Longer processing times for complex returns
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Delays in resolving errors or questions
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Slower responses related to amended returns or credits
For buyers planning a purchase in early or mid-2026, filing early and accurately can help avoid delays that might affect financing timelines.
New Tax Law Changes for 2025 Returns
The IRS is also tasked with implementing provisions from a major tax and spending package passed last summer. Several updates apply retroactively to the 2025 tax year, which may require revised forms and additional guidance.
This increases the likelihood that taxpayers—especially homeowners with deductions, credits, or investment properties—will have questions. Working with a qualified tax professional is strongly advised.
What Homebuyers Should Do Now
If you’re planning to buy a home in 2026, tax preparation should be part of your strategy:
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File early to reduce the risk of processing delays
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Organize income and asset documentation needed for mortgage approval
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Understand how tax refunds or liabilities affect your cash position
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Plan ahead if you’re self-employed, investing, or selling a property
For current homeowners, reviewing your tax situation early can help you decide whether it’s the right time to sell, downsize, upgrade, or invest.
The Bottom Line To Consider
While tax season officially begins January 26, preparation should start well before then—especially in a year marked by policy changes and operational challenges at the IRS. A proactive approach can help buyers and homeowners move forward with confidence in today’s market.
Are you Ready to Make a Smart Move in 2026?
Laura Graves Real Estate helps buyers and homeowners align financial planning with real estate goals. Whether you’re preparing to buy, sell, or invest, having the right guidance matters.
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