What’s New for Filing Taxes in 2026 Guide – The 2026 tax filing season is underway for millions of Americans filing their 2025 federal income tax returns. With the IRS opening the season on January 26, 2026, and the deadline set for April 15, 2026, understanding the latest updates is essential for maximizing refunds or minimizing what you owe.
Major changes stem from the One Big Beautiful Bill Act (OBBB), signed into law on July 4, 2025. This legislation introduced new deductions, boosted the standard deduction, raised the Child Tax Credit, and increased the state and local tax (SALT) deduction cap—many with retroactive effect for tax year 2025.
Below is your comprehensive, SEO-optimized guide to what’s new, based on official IRS announcements and trusted sources.
2026 Tax Filing Deadlines and Season Overview
The IRS began accepting 2025 tax returns on January 26, 2026. Most taxpayers must file by April 15, 2026. If you need more time, you can request an automatic extension to file (but not to pay any taxes owed).
Key dates to note:
- Employers must issue W-2s and 1099s by February 2, 2026.
- Estimated tax payments for 2026 are due quarterly.
- The IRS expects roughly 164 million individual returns this season.
Electronic filing remains the fastest and most accurate option. The IRS strongly encourages direct deposit for refunds to receive them in as little as 21 days—and is phasing out paper refund checks.
Major New Deductions from the One Big Beautiful Bill (Tax Year 2025)
The OBBB introduced several above-the-line deductions available to both itemizers and those taking the standard deduction. Claim these on the new Schedule 1-A.
- No Tax on Tips: Deduct up to $25,000 in qualified tips received in occupations customarily tipped (reported on W-2, 1099, or Form 4137). Effective 2025–2028.
- No Tax on Overtime: Deduct up to $12,500 (single) or $25,000 (married filing jointly) for the premium portion of qualified overtime pay (e.g., the extra half in “time-and-a-half”). Effective 2025–2028.
- No Tax on Car Loan Interest: Deduct up to $10,000 in interest paid on a loan for a qualified passenger vehicle purchased for personal use (meets specific eligibility rules). Effective 2025–2028.
- Enhanced Senior Deduction: Taxpayers age 65 or older can claim an additional $6,000 per qualifying person ($12,000 if both spouses qualify and file jointly). This is on top of the regular additional standard deduction for seniors. It phases out for modified adjusted gross income (MAGI) over $75,000 (single) or $150,000 (joint). Effective 2025–2028.
These deductions can significantly lower taxable income—especially for service workers, overtime earners, seniors, and new car buyers.
Updated Standard Deduction for Tax Year 2025
The OBBB increased the standard deduction for 2025:
- Single or Married Filing Separately: $15,750
- Married Filing Jointly: $31,500
- Head of Household: $23,625
Seniors and blind individuals may qualify for even higher amounts when combining the new senior deduction with existing additional standard deductions. Most taxpayers benefit from taking the standard deduction rather than itemizing.
2025 Federal Income Tax Brackets
The seven tax rates (10%, 12%, 22%, 24%, 32%, 35%, and 37%) remain unchanged, but income thresholds are inflation-adjusted. Here are the brackets for tax year 2025:
Single Filers
- 10%: $0 – $11,925
- 12%: $11,926 – $48,475
- 22%: $48,476 – $103,350
- 24%: $103,351 – $197,300
- 32%: $197,301 – $250,525
- 35%: $250,526 – $626,350
- 37%: $626,351+
Married Filing Jointly (roughly double the single thresholds)
- 10%: $0 – $23,850
- And so on (full tables available on IRS.gov).
Higher earners should watch for bracket creep, especially with new income from raises or bonuses.
Expanded Child Tax Credit and Other Credits
- Child Tax Credit (CTC): Increased to $2,200 per qualifying child under age 17 (up from $2,000). Additional rules apply for valid Social Security numbers.
- Adoption Credit: Enhanced maximum of $17,670, with up to $5,000+ potentially refundable.
Other credits like the Earned Income Tax Credit (EITC) and Child and Dependent Care Credit continue with inflation adjustments.
Higher SALT Deduction Cap for Itemizers
The cap on state and local tax (SALT) deductions rises from $10,000 to $40,000 for 2025 (adjusted annually thereafter). This benefits taxpayers in high-tax states who itemize.
How to File Your 2025 Taxes in 2026: Options and Tips?
- Use IRS Free File — If your 2025 AGI is $89,000 or less, free guided software is available. Fillable forms are open to everyone.
- Tax Software or Professionals — Popular programs are updated for Schedule 1-A and OBBB changes.
- Gather Documents Early — W-2s, 1099s, mortgage interest statements, and records for new deductions.
- Direct Deposit — Fastest refund method; set up a bank account if needed.
- Check Eligibility for New Deductions — Review qualified tips, overtime, car loans, and senior status.
Pro Tip: The new deductions are available even if you take the standard deduction—don’t overlook them!
What’s Different for 2026 Tax Year (Filed in 2027)?
Note that full inflation adjustments and some OBBB provisions apply more broadly starting in tax year 2026 (standard deduction rises further to $16,100 single / $32,200 joint). Plan ahead.
Final Tips to Maximize Your 2026 Tax Return
- Review all new OBBB provisions on IRS.gov.
- Contribute to retirement accounts or HSAs before deadlines where possible.
- Track new deduction eligibility throughout the year.
- File electronically and opt for direct deposit to avoid delays.
For the most accurate personalized advice, visit IRS.gov, consult a tax professional, or use IRS Free File. Tax laws can be complex, and individual circumstances vary.
Stay informed and file confidently this 2026 tax season—the new changes from the One Big Beautiful Bill could mean a bigger refund for many Americans. Check back on IRS.gov for the latest updates as the season progresses.