Many Ghanaians find taxes a chore done annually, but experts are advising early preparation for potential changes. The IRS is urging taxpayers to start gathering records and organizing financial information now to reduce stress, avoid errors and speed up refunds when tax season officially begins. This is especially important as major changes, including those from the "One, Big, Beautiful Bill," may affect deductions, credits, and refund timing.
Why Prepare Now?
The 2026 filing season corresponds to the 2025 earnings period, with returns due by April 15, 2026. New tax law changes have updated some familiar deductions and credits, meaning earlier planning can help you take full advantage of any new benefits or avoid potential missteps, the IRS stresses. The IRS and Treasury are working to implement the new legislation, including providing information on new tax deductions, such as no tax on tips, no tax on overtime, no tax on car loan interest, and a new temporary deduction for seniors.
How Will Refunds Change?
The IRS is phasing out paper refund checks starting late 2025, so most refunds will arrive via direct deposit. Taxpayers should be aware of and prepared to accept this change.
Potential Refund Surge and Inflation
Some analysts expect a "refund surge" due to retroactive tax changes. The IRS believes too much money will have been withheld from taxpayers, leading to larger refunds in early 2026. These refunds could boost consumer spending, similar to pandemic stimulus checks, potentially reigniting inflation. The combination of more money juicing consumption and still-easy monetary policy will cause inflation to pick up.
Trump's Promise of Record Refunds
Former President Donald Trump said that American taxpayers are in line for record tax refunds when this year's filing season opens in the next few months. Trump said the enactment of the One Big Beautiful Bill Act (OBBBA), will lead to taxpayers getting larger refunds due to tax relief for Social Security beneficiaries, workers who receive income from tips and overtime and deducting auto loans for U.S.-made cars.
What You Can Do Now
- Gather all your financial documents, including income statements (like W-2s), receipts, and records of deductible expenses.
- Organize your documents in a way that makes it easy to find information.
- Consider consulting with a tax professional to understand how the new tax laws affect you.