IRS Refund Delays in 2026 - Know your refund Quick Here

IRS Refund Delays in 2026: What Taxpayers Need to Know About Longer Wait Times and New Tax Rules

Taxpayers hoping for a quick refund in 2026 may need to prepare for longer wait times. The Internal Revenue Service (IRS) began accepting federal tax returns in late January, with the filing deadline set for April 15. According to USA TODAY, taxpayers could receive as much as an additional $100 billion in refunds this year, on top of the $328.88 billion issued in 2025.

However, this year’s tax filing season is expected to look very different from previous years. A combination of staffing constraints at the IRS and newly implemented tax rules under President Donald Trump’s major tax and spending legislation could significantly impact refund processing times.

Why Are IRS Refunds Delayed in 2026?

A Jan. 26 memo from the Department of the Treasury highlights growing concerns about IRS staffing levels and processing backlogs. Workforce reductions have brought IRS staffing back to October 2021 levels. At the same time, key backlogs — including amended returns and taxpayer correspondence — have increased substantially.

Although Treasury officials previously stated that the IRS had been reducing its pandemic-related backlog, overall inventory levels in major return-processing areas rose again as of December 2025. Staffing reductions and a federal government shutdown contributed heavily to these renewed delays.

The shutdown began on Oct. 1, 2025. The IRS remained funded for five business days before furloughing employees on Oct. 8. Normal operations resumed on Nov. 13. During that period, about 23,000 of the IRS’s 39,000 critical filing-season employees — roughly 59% — were exempted from furlough to prepare for the 2026 tax season. Their pay was supported through multi-year Inflation Reduction Act funding.

Despite these efforts, any unprocessed inventory from the current cycle will carry into the 2026 filing season. Combined with reduced staffing, this may slow return processing, delay refunds, and increase the amount of interest the IRS must pay to taxpayers.

Impact of the One Big Beautiful Bill Act

Adding to the complexity is President Trump’s newly enacted tax and spending package, commonly referred to as the “One Big Beautiful Bill Act.” According to National Taxpayer Advocate Erin Collins, the legislation is generally taxpayer-favorable because it expands eligibility for several major deductions and benefits.

However, the new tax breaks come with complicated eligibility rules, income limits, and phaseouts. Collins noted that many of the 2025 tax law changes require significant IRS system updates, new guidance, revised forms, and increased taxpayer education.

The law introduced more than 100 changes to the tax code. These detailed and often confusing provisions could increase filing errors on 2025 federal income tax returns, potentially leading to refund delays.

New Deductions That May Cause Confusion

Collins highlighted several expanded or new benefits, including:

• Deductions for tip income

• Overtime pay deductions

• Interest on auto loans

• An additional deduction for seniors

• A higher maximum deduction for state and local taxes (SALT)

The revised SALT deduction rules, particularly the relaxed cap for certain state and local taxes paid in 2025, will affect taxpayers who itemize deductions on Schedule A. Some taxpayers who previously took the standard deduction may benefit more from itemizing this year. They will need to calculate both options carefully.

Other deductions, such as those for tip income, seniors, and overtime pay, may apply to both itemizers and standard deduction filers.

One example of additional paperwork is the “No Tax on Car Loan Interest” deduction. Taxpayers claiming this benefit must enter a 17-digit vehicle identification number (VIN) on Schedule 1-A to prove their 2025 vehicle was assembled in the United States. Missing or incorrect information could slow processing and delay refunds.

More Complex Than Previous Years

Experts say the 2026 filing season may be more complex than in recent years. While the Tax Cuts and Jobs Act of 2017 simplified many aspects of the tax code, the new changes introduce greater detail and complexity.

Alex Muresianu, senior policy analyst for the Tax Foundation, said the significant changes under the One Big Beautiful Bill Act will make completing and filing an individual income tax return more complicated than it has been in recent years.

Ultimately, how much delay or frustration taxpayers experience will depend on their income sources, eligibility for new deductions, and accuracy in filing. As the IRS manages staffing constraints and implements major tax law updates, taxpayers should expect a filing season that may require extra attention — and possibly extra patience.