2026 Tax Updates
What's New This Tax Season
The One Big Beautiful Bill Act, signed in July 2025, brought some of the biggest changes in years. Several are new deductions you can take even if you don't itemize.
📈Bigger Standard Deduction
| Filing status | 2025 |
|---|---|
| Single | $15,750 |
| Married filing jointly | $31,500 |
| Head of household | $23,625 |
👶Child Tax Credit
Up from $2,000, for each qualifying child under 17 at the end of the year.
The credit is reduced at higher incomes.💵No Tax on Tips
For qualified cash and card tips in jobs where tipping is customary. Available whether or not you itemize.
Phases out above $150,000 income ($300,000 joint). Tax years 2025–2028.⏱️No Tax on Overtime
Up to $25,000 if married filing jointly. Applies to the extra "half" portion of qualified overtime pay (time-and-a-half).
Phases out above $150,000 income ($300,000 joint). Tax years 2025–2028.👵Extra Deduction for Seniors
On top of the regular standard deduction. A married couple who are both 65+ can deduct an extra $12,000.
Phases out above $75,000 income ($150,000 joint). Tax years 2025–2028.🚗Car Loan Interest Deduction
Interest on a loan for a new personal vehicle with final assembly in the U.S.
Phases out above $100,000 income ($200,000 joint). Tax years 2025–2028.🏠Higher SALT Cap
If you itemize, you can now deduct up to $40,000 of state and local taxes, a big change for California homeowners.
Reduced for incomes above $500,000.🌴California Note
These are federal changes. California doesn't automatically follow federal tax law, so your state return may be different.
We handle both your federal and California returns.Plan Ahead for Next Year
New numbers and benefits for the 2026 tax year (the return you'll file in 2027).
📊2026 Standard Deduction
| Filing status | 2026 |
|---|---|
| Single | $16,100 |
| Married filing jointly | $32,200 |
| Head of household | $24,150 |
❤️Charity Deduction Without Itemizing
Starting in 2026, deduct cash donations to qualified charities: $1,000 single, $2,000 married filing jointly, even if you take the standard deduction.
🧒Trump Accounts for Kids
A new savings account for eligible children. Contributions start July 4, 2026: families can add up to $5,000 a year, and employers up to $2,500.
🍼Bigger Child Care Credit
Starting in 2026, the Child and Dependent Care Credit rate rises to as much as 50% of up to $3,000 in expenses ($6,000 for two or more dependents).
Not sure which of these apply to you?
We'll check every new deduction on your return. Individual returns only for $99.*
*Restrictions apply. This page is general information, not tax advice. Eligibility and amounts depend on your situation, and many benefits phase out at higher incomes. Talk to one of our tax professionals about your return.
Source: IRS: Tax deductions for working Americans and seniors · IRS: 2026 inflation adjustments