Markets April 15, 2026

When Are Taxes Due in 2026? The Iran War Is Pushing Social Security COLA Higher

When are taxes due in 2026? The deadline is today, April 15, and with around 164 million returns expected this year, millions of Americans are racing to file before midnight. An extension moves the filing deadline to October 15, but taxes owed are still due today. The IRS charges a 5% penalty per month on unpaid taxes, up to 25%, for those who miss the payment deadline.

IRS tax extension for tax returns – Source: IRS

But while taxpayers scramble to submit returns, the Iran war is quietly reshaping what comes next for retirees. Rising oil prices have pushed inflation to 3.3% year over year, the highest level in nearly two years. That surge is now feeding directly into Social Security COLA estimates for 2027, with projections climbing from 1.7% in March to as high as 3.2%.

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Tax Day Is April 15 and the Iran War Is Already Raising Your 2027 COLA

Electronic returns must be submitted by 11:59 p.m. local time on Tax Day. Paper returns need to be properly addressed, postmarked, and include sufficient postage. Taxpayers can request an extension through IRS Free File, by filing Form 4868, or by making a payment online and selecting “extension” as the payment type.

Mike Faulkender, co-chair of American Prosperity at the America First Policy Institute and former Treasury official, had this to say:

“Remember that even if you claim an extension, the money is owed on April 15.”

Taxpayers who need more time should estimate their bill and pay by the filing deadline to avoid added costs. The IRS charges a failure-to-pay penalty of 0.5% per month on unpaid taxes, up to 25%. Interest also accrues daily on any unpaid amount, and in early 2026 the rate stood at 7%.

Social Security beneficiaries received a 2.8% cost-of-living adjustment in 2026, pushing the average retirement check up by $56 per month. That increase now appears likely to be matched or exceeded when are taxes due in 2026 and COLA calculations begin for 2027.

COLA Watch chart showing 2027 predictions – Source: seniorsleague.org

Mary Johnson, an independent Social Security and Medicare policy analyst, now estimates the 2027 Social Security COLA at 3.2%, up sharply from her 1.7% forecast in March. The Senior Citizens League separately predicts a 2.8% adjustment based on the latest inflation data.

The adjustment is calculated using the Consumer Price Index for Urban Wa ge Ea rners and Clerical Workers, comparing third-quarter data year over year. March data showed inflation climbed 3.3% over the past 12 months, driven largely by rising gasoline prices tied to the Iran war.

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Higher COLA Reflects Rising Costs, Not Relief

Gas station price sign USA — Source: CNBC

A higher Social Security COLA may sound like good news, but it reflects rising costs that beneficiaries absorb throughout the year. Johnson noted that retirees consistently feel the adjustment undercounts their real experience with inflation.

A September AARP survey found that 77% of Americans age 50 and over do not believe a 3% Social Security COLA is enough to keep up with rising prices. Some 72% said an increase of 5% or higher would be necessary to cover everyday expenses.

Social Security cost-of-living adjustments since 1976 – Source: CNBC

A new proposal from the Committee for a Responsible Federal Budget would cap Social Security payments at $50,000 per person, or $100,000 per couple. The policy would close about three-fifths of the program’s projected shortfall over the next 75 years, but the Senior Citizens League reports that 95% of seniors oppose benefit cuts for current retirees.

Avoiding Common Filing Mistakes on Tax Day

Tax experts warn that these are the most common mistakes they saw:

Choosing the wrong filing status – this is one of the most expensive errors, as it determines tax rates and credit eligibility.
Using Incorrect bank account details – can delay a refund or cause the IRS to reject a payment.

Bill Sweeney, senior vice president of government affairs at AARP, stated:

“This would be a good year, given that there are these changes to the tax code, to make sure not to assume that what you did last year will convey over to this year.”

The IRS is phasing out paper tax refund checks and encourages taxpayers to establish a bank account for direct deposit. The IRS issues most refunds in fewer than three weeks when taxpayers file electronically and choose direct deposit.

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When are taxes due in 2026? Today, April 15. And as Americans race to file or pay what they owe, inflation driven by the Iran war continues to climb, setting the stage for a 2027 Social Security COLA that may still fall short of covering retirees’ rising costs.