Optima Tax Relief’s Chief Tax Officer and Lead Tax Attorney, Phil, shares his predictions and insights for the upcoming 2026 tax season. From refunds to IRS service levels, here’s what taxpayers can expect.
Hot Take #1: Tax Refunds
Will refunds go up or down this year? While some expect increases, Phil’s take is that refunds will likely stay about the same. With so many variables impacting tax outcomes, major swings are less predictable than headlines suggest.
Hot Take #2: IRS Service Levels
Will the IRS perform better this year? Phil expects service levels may decline due to staffing shortages and budget cuts. However, there’s a silver lining—advancements in technology and AI could help more taxpayers get assistance, even if traditional support channels lag.
Hot Take #3: State Adoption of “No Tax on Tips”
With changes at the federal level, some are wondering how many states will follow suit on policies like eliminating taxes on tips. Phil predicts less than half of states will adopt similar measures, as many states aim to preserve tax revenue amid shifting federal funding.
Bonus Take: Just File
Phil’s final takeaway is essential advice: do something. No matter how tax laws change, filing your return on time is critical to avoiding penalties and interest.
Stay Ahead This Tax Season
While predictions can offer insight, preparation is what truly matters. Staying informed and taking action early can help you navigate the 2026 tax season with confidence and avoid unnecessary costs.
If you need tax help, contact us today for a Free Consultation