New changes could mean bigger tax returns for Coloradans in 2026

The 2026 tax season is underway, and that comes with several new credits and deductions that could impact your return this year. This is due to the One, Big, Beautiful Bill Act, which took effect Jan. 1.

"This year is a huge year for changes," said Robert Persichitte, an affiliate finance professor at Metropolitan State University of Denver and a tax preparer. "For most people, it's going to be better. You're going to have more money in your pocket."

The Internal Revenue Service is highlighting four major changes: 

• A $6,000 bonus deduction for seniors
• No tax on tips
• No tax on overtime
• No tax on car-loan interest

Taxpayers claiming these breaks should use Schedule 1-A. Benefits are income tested and capped, depending on how much you earn. With all these changes, Persichitte says it's important to be meticulous with paperwork this season.

"Don't go through on autopilot. Consider working with a tax preparer and consider getting a second look from a tax professional, and there's a lot of places that will do that for free. Even us tax preparers are seeing W-2s that are inconsistent, so we have to look at the pay stub and figure it out."

You have until April 15 to file. The IRS generally issues refunds within 21 days for taxpayers who file electronically and choose direct deposit.  

Another major piece of advice from Persichitte: Always watch out for scammers.

"The IRS is never going to call you to collect money," Persichitte said. "If anyone ever says that you need to wire them money or something like you have to give them crypto or gift cards, or non-traceable transactions, it's a scam. You should just hang up immediately."