Big Tax Changes for 2026

What You Need To Know

The 2026 tax season (for the money you earned in 2025) is officially here, and it’s a big one. Thanks to the "One, Big, Beautiful Bill" (OBBB) Act, there are brand-new ways to save.

Here is the "plain English" breakdown of what’s changing for you and your business.

For Individuals: 

More Money in Your Pocket

The goal this year is to let you keep more of what you earn, especially if you’re a service worker, a senior, or a parent.

• Keep Your Tips & Overtime: If you work for tips or put in extra hours, good news! Federal income tax no longer applies to your tips or overtime pay.

• The "Senior Bonus": If you are 65 or older, you get a new $6,000 deduction. This is on top of the standard deduction you already get.

• A Bigger "Standard" Discount: Everyone gets a larger "standard deduction" this year. It’s like a built-in discount on your taxes:

  • Married Couples: $31,500

  • Single Filers: $15,750

• Help with Your Car Loan: Buying a new car? You can now deduct up to $10,000 of the interest you pay on a loan for a new U.S.-made vehicle.

• Parents Get a Boost: The Child Tax Credit has gone up to $2,200 per child.

For Business Owners

Better Rules for Growth

Small business owners and entrepreneurs have a lot to smile about this year with simpler rules and bigger write-offs.

• Write Off Equipment Instantly: If you bought machinery, computers, or equipment, you can likely write off 100% of the cost immediately instead of spreading it out over years.

• Help with Childcare: If you help your employees pay for childcare, your tax credit for doing so has tripled (up to $500,000).

• Lower Taxes for "Pass-Throughs": The 20% deduction for most small businesses (QBI) is now permanent, meaning more predictable savings every year.

• R&D is Easier: If you spent money developing a new product or software, you can now deduct those costs all at once this year.

Digital & Crypto Updates

• New Forms: If you trade crypto or NFTs, look out for Form 1099-DA. The IRS is tracking digital assets more closely, so make sure you have your records ready!

• Apps Like Venmo/PayPal: If you sold items online or did gig work, you’ll likely get a 1099-K if you made over $20,000 across 200 transactions.

Will this apply to me?

Yes! These changes are active for the returns you file right now.

• Individuals: Many of these (like the new Standard Deduction) are automatic.

• Special Claims: For things like the "No Tax on Tips" or the "Senior Bonus," we need to file a new form called Schedule 1-A.