Here's a plain-English rundown of recent tax changes, with a link to the official source for each.
2026 at a glance
Standard deduction: $16,100 single · $24,150 head of household · $32,200 married filing jointly. IRS source
Business mileage: 72.5¢ a mile (Jan–Jun) · 76¢ a mile (Jul–Dec). IRS source
1099-NEC/MISC: generally sent for $2,000 or more (was $600). IRS source
1099-K: sent when payments are over $20,000 and over 200 transactions. IRS source
Good news: most of these carry over to 2026 returns too. The exceptions are the home energy and EV credits, which have ended, and the 2025-only pay-stub workaround for tips and overtime.
Tips deduction
If you work in a job where tips are normal, you may be able to deduct up to $25,000 of tips. It shrinks once income is over $150,000 ($300,000 married filing jointly), and requires a Social Security number and, if married, a joint return.
Overtime deduction
You may be able to deduct the extra "half" of time-and-a-half pay, up to $12,500 ($25,000 married filing jointly), with the same rules as tips.
2025 tips and overtime: pay stubs count
If your 2025 W-2 doesn't show tips or overtime separately, pay stubs and other records can be used (for example, one-third of total time-and-a-half pay).
Car loan interest deduction
You may be able to deduct up to $10,000 of interest on a loan started after 2024 for a new, personal-use vehicle under 14,000 lbs with final assembly in the U.S. (no leases, and the VIN goes on your return). The deduction shrinks once income is over $100,000 ($200,000 married filing jointly).
Extra deduction for age 65 and older
If you're 65 or older, you may get an extra $6,000 deduction ($12,000 if married and both qualify), whether or not you itemize. It shrinks once income is over $75,000 ($150,000 married filing jointly).
Higher limit on state and local tax deductions (SALT)
If you itemize, you can deduct up to $40,000 of state and local income, sales and property taxes for 2025 ($40,400 for 2026), up from $10,000. The limit shrinks once income is over $500,000 ($505,000 for 2026), but never below $10,000.
Child Tax Credit
Up to $2,200 per child ($1,700 refundable). You (or your spouse, if filing jointly) and each child need a Social Security number valid for work.
Clean vehicle and home energy credits have ended
EV credits end for vehicles acquired after Sept. 30, 2025. Home energy improvement and solar credits end for items placed in service or installed after Dec. 31, 2025.
Business equipment
100% bonus depreciation is now permanent for property acquired after Jan. 19, 2025. The Section 179 limit is $2,500,000 for 2025 and $2,560,000 for 2026.
IRS source · Section 179 source
Small business deduction made permanent
The deduction of up to 20% of business income for sole proprietors, landlords, farms and K-1 owners is now permanent, with limits.
Mileage rate changed mid-year
Business mileage is 72.5¢ a mile for Jan.–June and 76¢ for July–Dec. Not sure which miles fell when? A reasonable estimate, like splitting your miles evenly between the two halves, works, and we'll help.
Fewer 1099s, but the income still counts
Most 1099-NECs are now only sent for $2,000 or more, and 1099-Ks for over $20,000 and over 200 transactions. Income is still taxable without a form, so keep your own records.
Marketplace health insurance: no more repayment cap
If you got more premium help than you qualified for, you now repay the full difference, and the extra help added for 2021–2025 has ended. Report income changes to the Marketplace during the year.
Charity deduction, even if you don't itemize
If you take the standard deduction, you can deduct up to $1,000 ($2,000 married filing jointly) of cash gifts to qualifying charities (not donor-advised funds). Keep your receipts or bank records.
Charity rule for itemizers
If you itemize, only the part of your gifts above 0.5% of your income counts (for example, the first $500 at $100,000 of income).
Bigger childcare credit and dependent care FSA
The childcare credit can now be up to 50% of care costs (max $1,500 for one person, $3,000 for two or more). Dependent care FSAs can now allow up to $7,500, up from $5,000 (same expenses can't count twice).
Tips and overtime now on your W-2
Look in Box 12: code TP shows tips and code TT shows deductible overtime. Please send your full W-2.
For business, rental and farm owners
With at least $1,000 of qualifying business income, the small business deduction is now at least $400. Business losses can offset only up to $256,000 of other income ($512,000 married filing jointly), down from $313,000 ($626,000).
Refunds by direct deposit
The IRS has mostly stopped mailing refund checks. Without bank details, your refund may be held until you answer an IRS letter (CP53E).
Estimated taxes: EFTPS ending for individuals
Individuals must switch from EFTPS later in 2026. Use your IRS Online Account or IRS Direct Pay instead.
HSAs: 2026 limits are $4,400 ($8,750 family), and bronze and catastrophic plans now qualify. IRS source
Gambling losses: if you itemize, only 90% of losses are deductible, up to your winnings. IRS source
These are general summaries, not a determination of eligibility. Figures come from IRS guidance as of October 2026, and we'll update this page as the IRS finalizes forms. Tax rules and IRS guidance may change.