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Important information and useful links to find answers to most of your questions.
EITC and ACTC Refunds Available Around March 2
Most refunds for the earned income tax credit (EIC) and the additional child tax credit (ACTC) are expected to be available in bank accounts or on debit cards around March 2, 2026, for taxpayers who chose direct deposit and have no other issues with their returns. Some taxpayers may receive their refund earlier, depending on their financial institution.
Filing Season Start Date Announced
IRS announces first day of 2026 filing season; online tools and resources help with tax filing
Delaware Returns
The Delaware Division of Revenue will begin accepting and processing 2025 individual income tax returns on January 26, 2026. To prevent fraud, state refunds will not be issued until February 16, 2026. Taxpayers are encouraged to file electronically to speed up processing times.
TIP Income
For tax years beginning after December 31, 2024. Individuals can deduct up to $25,000 in qualified cash tips from their taxable income. You don’t have to itemize to take this deduction. To qualify, the taxpayer must work in an occupation that customarily and regularly received tips on or before Dec. 31, 2024. Effective 2025 through 2028, employees and self-employed individuals may deduct qualified tips that are reported on a Form W-2, Form 1099, another statement furnished to the individual, or on Form 4137 if the individual directly reports the tips.
Overtime Pay
This is a temporary deduction effective for tax years 2025-2028. Overtime compensation received during the taxable year is reported separately on either Form W-4 or on an information return and is temporarily deductible from taxable income. Only overtime that qualifies under Section 7 of the Fair Labor Standards Act of 1938 is eligible; that is, pay for hours worked in excess of the standard workweek, calculated at a rate above the individual’s regular hourly rate, commonly called time-and-a-half or premium pay.
Senior Credit
Beginning in tax year 2025 and continuing through 2028, individuals age 65 or older by year-end may claim a new deduction of $6,000. On a joint return, each spouse may qualify, allowing for up to $12,000 in total deductions if both meet the age requirement, income limitations and file a joint return.
Car Loan Interest
No Tax on Car loan interest - Effective for 2025 through 2028, individuals may deduct interest paid on a loan used to purchase a qualified vehicle, provided the vehicle is purchased after December 31, 2024 and for personal use and meets other eligibility criteria. (Lease payments, used vehicles and commercial vehicles do not qualify). Maximum annual deduction is $10,000.
Beware of Scams
Tax scams and how to know when it's the IRS
Do you need an identity theft pin?
An identity protection PIN (IP PIN) is a six-digit number that prevents someone else from filing a tax return using your Social Security number (SSN) or individual taxpayer identification number (ITIN). The IP PIN is known only to you and the IRS. It helps us verify your identity when you file your electronic or paper tax return.
You've successfully filed a Tax Extension!
Here's a quick rundown of what comes next:
Breathe Easy (for now): Filing the extension gives you an automatic six-month extension to file your federal income tax return. This pushes the deadline to October 15, 2025.
Don't Confuse Extension with Payment: It's crucial to remember that an extension to file is not an extension to pay. If you owed taxes, that payment was still due on the original tax deadline (April 15, 2025). Penalties and interest may apply to any unpaid balance from the original due date.
Estimate and Pay (if you haven't already): If you haven't paid your estimated tax liability, do so as soon as possible to minimize potential penalties and interest. You can pay online through the IRS website, by mail, or via the Electronic Federal Tax Payment System (EFTPS).
Gather Your Documents: Use this extra time wisely to gather all necessary tax documents (W-2s, 1099s, receipts, etc.). Organizing these now will make the actual filing process smoother.
Prepare and File Your Return: Don't wait until the last minute in October! Start preparing your tax return as soon as you have all your documents. You can use tax software, work with a tax professional, or use IRS Free File if you qualify.
Keep Records: Once you file, keep a copy of your tax return and all supporting documents for your records.
In short, the extension buys you time to file, but payment was still due. Use this extra time to get organized and file accurately before the extended deadline.
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