Podcast Summary: “Tax Season 2026 Opens” – Jill on Money with Jill Schlesinger (Jan 26, 2026)
Episode Overview
In this episode, Jill Schlesinger, CFP®, kicks off the 2026 tax season, highlighting significant changes prompted by last summer’s sweeping tax reform bill. She discusses key new deductions and credits, IRS expectations, tips for maximizing your refund, and actionable guidance for listeners bracing for a more complex filing year. Jill also plays a recent TV segment where she outlines these developments and offers practical advice, always in her direct and jargon-free style.
Key Discussion Points and Insights
1. Tax Season Begins — It’s Not Business as Usual
- The IRS has started accepting returns for the 2025 tax year. Jill notes that this year’s tax season will be notably “challenging” (01:51) due to new legislation passed the previous summer, fundamentally altering credits, deductions, and forms.
- Jill urges listeners to seek guidance early:
“If something comes up as you are completing your tax returns... get in touch with us before things get too close to the tax filing deadline of April 15.” (02:07)
- Promotion of Jill’s subscription service and upcoming Ed Slott webinar for deeper tax dives.
2. Larger Refunds and Bigger Changes (TV Segment with Adriana Diaz)
- IRS Expects Larger Refunds:
Adriana Diaz opens with the IRS expectation that “refunds will be larger this year” (04:24) thanks to the “one big beautiful bill” enacted by Congress. - Major Credits and Deductions Introduced (Jill, 04:44–05:36):
- Enhanced Deduction for Seniors:
“If you're over the age of 65... you're getting an enhanced tax deduction.”
- Tip & Overtime Income Tax-Free:
“Folks who... receive tip income or overtime income... there will not be tax on that. And I think that's a big difference. It is limited by the amount of income you earn.”
- Auto Loan Interest Deductible:
“Auto loan interest, which is now deductible.”
- New IRS Form:
Jill notes, “there’s a new form available... you will see that as you begin the tax filing process.”
- Enhanced Deduction for Seniors:
3. New "Trump Account" for Children (Long-Term Baby Savings)
- Tax-Advantaged Accounts for Newborns (Jill, 05:40–06:21):
- “If you had a baby last year, you are going to be entitled to… the so-called Trump account. It's a way to save long term for retirement for your baby... the government is going to put $1,000 into an account.”
- Parents and grandparents can contribute up to $5,000/year in addition.
- Applies for children born in 2025, 2026, and 2027.
- Program officially starts in the summer, but “you can actually flag it when you file your returns” now.
- Compound Interest for Kids: Adriana notes potential for growth:
“And just think about how that might accrue over the 18 years of your child's life and beyond for their retirement.” (06:21)
4. Getting Your Refund Faster
- Best Practices for Speedy Refunds (Jill, 06:44–07:19):
- File electronically and use direct deposit — “It should be there within 21 days according to the IRS.”
- Avoid mailing paper returns.
- Many will see “fatter tax refunds” due to mid-year withholding issues post-tax bill.
- Jill’s classic admonition:
“I don't like tax refunds. You just loan money to the government and get zero interest.” (07:16)
5. “Jill’s Big Three” — Smart Uses for Your Tax Refund
- Jill’s time-tested advice (07:32–08:05):
- Emergency Reserve Fund:
“Have an emergency reserve fund that has at least 6 to 12 months of your living expenses. So maybe you use your refund and you put money into that account.”
- Pay Down Expensive Debt:
“There's a lot of people [who] have outstanding credit card debt, an expensive auto loan — pay it down.”
- Boost Retirement Savings:
“Increase your retirement plan contributions as much as possible.”
- Emergency Reserve Fund:
6. Recap of Key Tax Law Changes
- Jill repeatedly emphasizes four major changes (08:05–08:32):
- Deduction for seniors (65+)
- No tax on tips or overtime
- No tax on car loan interest
- All these are “income tested” — must be below specific income thresholds
- Refers listeners to her blog for detailed explanations and up-to-date limits and deduction information.
Notable Quotes & Memorable Moments
- On Tax Season’s Complexity:
“Eat your Wheaties. There’s a lot of changes this year.” — Jill, (04:44)
- On Withholding and Refund Surprises:
“A lot of people didn't adjust their withholding because the tax bill was passed in July. So these people might find you have a big fatter tax refund.” — Jill, (07:10)
- On Preference for No Refunds:
“I don't like tax refunds. You just loan money to the government and get zero interest.” — Jill, (07:16)
- On Children’s “Trump Account”:
“The government is going to put $1,000 into an account... you’ll be able to put in $5,000 bucks a year.” — Jill, (05:40–06:21)
- On Organization and Avoiding Paper:
“People who are clinging to paper returns... man, you are missing the boat.” — Jill, (06:52)
Important Timestamps
- 01:51 — Tax season intro; “challenging” year flagged, call for listener questions
- 04:24–04:51 — IRS expects larger refunds, overview of tax law changes
- 04:56–05:36 — Four major new credits and deductions explained
- 05:40–06:35 — Details on “Trump Account” for babies (child long-term savings)
- 06:44–07:19 — How to get refunds quickly, pitfalls of paper filing
- 07:32–08:05 — “Jill’s Big Three” for refund use: reserves, debt paydown, retirement
- 08:05–08:32 — Recap of the four headline tax changes/reforms
Summary & Action Steps for Listeners
- Check for New Deductions & Credits: Seniors, hourly/tipped workers, and auto loan holders should review eligibility.
- Consider the New “Trump Account” if you had a baby; prepare to earmark your return for this if eligible.
- E-file with Direct Deposit to get your refund swiftly.
- Think Beyond the Refund: Use it strategically for reserves, debt relief, or retirement contributions.
- Review Resources: Visit jillonmoney.com for detailed posts and contact forms for questions.
“Eat your Wheaties, gang. It's going to be an exciting tax season.” — Jill Schlesinger (08:32)