These federal changes apply to tax year 2026 returns generally filed in 2027. This guide reflects IRS information available October 15, 2026. Eligibility and final amounts depend on the rules and forms in effect when you file.
For tax year 2026, the standard deduction is $16,100 for single filers and married filing separately, $24,150 for head of household, and $32,200 for married filing jointly or qualifying surviving spouses. Your filing status and age can affect the amount.
For 2025–2028, eligible workers may deduct up to $25,000 of qualified tips from occupations on the IRS list. The deduction phases out when modified adjusted gross income exceeds $150,000 ($300,000 for joint filers). Self-employed workers have an additional limit tied to net income from the tipped business. Tips still must be reported as income.
For 2025–2028, eligible workers may deduct the qualified overtime premium—the amount above their regular rate, not all overtime pay. The annual maximum is $12,500 ($25,000 for joint filers), and the deduction phases out above modified adjusted gross income of $150,000 ($300,000 joint).
For 2025–2028, eligible taxpayers may deduct up to $10,000 of interest on a qualifying loan for a new personal-use vehicle. The loan must begin after December 31, 2024, be secured by a lien, and the vehicle must meet requirements including U.S. final assembly. Leases do not qualify. The deduction phases out above modified adjusted gross income of $100,000 ($200,000 joint).
For 2025–2028, a taxpayer age 65 or older by year-end may qualify for an additional $6,000 deduction ($12,000 if both spouses qualify). It phases out above modified adjusted gross income of $75,000 ($150,000 joint) and is separate from the existing additional standard deduction for age or blindness.
For 2026, the maximum credit rate rises from 35% to 50% of qualifying expenses. Expenses are generally capped at $3,000 for one qualifying person or $6,000 for two or more; the rate and eligibility depend on income and other rules. Care generally must enable you to work or look for work.
For 2026, repayment caps for excess advance Premium Tax Credit are removed. If advance payments were higher than the credit allowed for your final household income, you may have to repay the full excess. Keep Form 1095-A and report income or household changes to the Marketplace; reconcile the credit on Form 8962.
Taxpayers who take the standard deduction may be able to deduct qualifying cash gifts to eligible charities, up to $1,000 ($2,000 for joint filers). Keep receipts and verify that the organization and contribution qualify under IRS rules.
Clean-vehicle credits generally are not allowed for vehicles acquired after September 30, 2025. The Energy Efficient Home Improvement Credit does not apply to property placed in service after December 31, 2025, and the Residential Clean Energy Credit does not apply to expenses after that date.
For 2026 payments, the general Form 1099-NEC reporting threshold for certain business payments increases to $2,000. That is a payer reporting rule; it does not make your income nontaxable if you do not receive a form. Keep records of every income source.
For 2026, Forms W-2 and certain Forms 1099 include new boxes or codes for qualified tips and overtime. Share all pages of each tax statement with your preparer so the amounts can be reviewed correctly.
Last reviewed: October 15, 2026 · Federal information only
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