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Why Your Tax Bill Could Rise in 2026 Even If Your Income Doesn’t
Yahoo Finance· 2026-02-09 14:09
Core Insights - The article discusses potential reasons for an increase in tax bills in 2026, even with stable income levels, highlighting the impact of changing tax rules and thresholds [2][4][6] Group 1: Family Changes - Changes in family status, such as divorce or the death of a spouse, can lead to a loss of favorable tax filing status, resulting in higher taxes [3] Group 2: Benefit Phaseouts - Many tax deductions and credits phase out as income surpasses specific thresholds, particularly affecting those earning over $500,000 jointly or seniors on fixed incomes [4] Group 3: Bracket Creep - Inflation can push taxpayers into higher tax brackets without any increase in income, a phenomenon known as bracket creep, which can lead to a higher tax burden [4][5] Group 4: Expiring Tax Provisions - Several taxpayer-friendly provisions from recent tax legislation are set to expire or change after 2025, potentially leading to higher marginal rates and reduced deductions [5][6] Group 5: Inflation Adjustments - Not all tax rules adjust in line with inflation, causing a mismatch that increases taxable income relative to real spending power, thereby raising the overall tax burden [6]