KEY TAKEAWAYS Tax filing season has started, and to get a refund quickly, taxpayers need to submit their 2025 tax returns accurately, and typically, electronically. The "One Big Beautiful Bill" made changes to the tax code that will give many taxpayers larger refunds. These changes, along with major layoffs that affected the IRS in 2025, may delay some taxpayers' returns. The 2026 tax filing season is well underway, and you'll want to submit your tax return as soon as possible, without mistakes, ...

KEY TAKEAWAYS The "One Big Beautiful Bill" made over 100 changes to the 2025 tax code, and taxpayers could miss out on savings if they don't take advantage of the new tax breaks. Filing electronically and setting up direct deposit for refunds could shorten the time it takes for taxpayers to receive their refunds. Most Americans struggle to understand the United States tax code, and mistakes stemming from these misunderstandings could mean they pay too much in taxes, receive a lower refund, or get ...

The 2026 tax season is in full swing, and several changes to the tax code could lead to larger returns for some Americans. And while those bigger refunds can make it tempting to file early, tax experts warn that incomplete filings can delay the processing of your refund or even trigger an audit (1). Must Read According to Elizabeth Young, director of tax practice and ethics for the American Institute of Certified Public Accountants, the IRS uses “very sophisticated software” that compares information th ...

Core Insights - The One Big Beautiful Bill Act (OBBBA) introduces permanent changes to the tax code along with temporary tax breaks that have strict limits and phaseouts, available until 2028 or 2029 [1] Group 1: Itemized Deductions - The OBBBA raises the state and local tax deduction cap (SALT) from $10,000 to $40,000 for married couples filing jointly and single filers, applicable from 2025 through 2029 [2] - For 2025, the standard deduction is set at $31,500 for married couples and $15,750 for singles, making itemization beneficial if total itemized deductions exceed these amounts [3] - The new $40,000 SALT cap phases out for modified adjusted gross income (MAGI) over $500,000, reverting to the original $10,000 limit at a MAGI of $600,000 [4] Group 2: Targeted Deductions - The OBBBA introduces temporary above-the-line deductions aimed at middle-income workers, but these come with strict income and benefit limits [5] - The qualified overtime pay deduction allows up to $25,000 for married couples and $12,500 for singles, phasing out at a MAGI of $300,000 for married couples and $550,000 overall [6] - The qualified tips income deduction permits writing off up to $25,000 of reported tip income, with phaseouts starting at a MAGI of $300,000 for married couples and $150,000 for singles, fully eliminated at $550,000 and $400,000 respectively [7] - The auto loan interest deduction allows up to $10,000 for interest on loans for new personal-use vehicles assembled in the US, phasing out at $200,000 for married couples and $100,000 for singles, completely gone by $250,000 and $150,000 [8] Group 3: Senior Deductions - For seniors aged 65 or older, the OBBBA provides a temporary deduction of up to $12,000 for married couples ($6,000 per eligible spouse) and $6,000 for single filers, although this deduction is fragile [9]

Core Insights - The IRS has made significant changes to the tax code for 2026, which will likely result in Americans saving money on their taxes due to increased standard deductions [1][2] - The income thresholds for federal income tax brackets are set to change, impacting how much individuals and married couples will be taxed [2][3] Group 1: Standard Deductions - For tax year 2026, the standard deduction will increase to $32,200 for married couples filing jointly, $16,100 for single taxpayers, and $24,150 for heads of households [1] - This increase in standard deduction will lower taxable income, leading to reduced tax liabilities for many Americans [1] Group 2: Income Tax Brackets - The highest tax bracket for individual filers will apply to incomes over $640,600, taxed at a 37% rate, while for married couples filing jointly, it applies to incomes over $768,700 [2] - The 35% tax bracket will include incomes over $256,225 for individuals and over $512,450 for married couples [2] - Individuals earning at least $12,400 and married couples earning at least $24,800 will be taxed at a 12% rate, while those earning $12,400 or less will be taxed at a 10% rate [3] Group 3: Bracket Creep - Adjusting tax bracket thresholds is a common practice to combat "bracket creep," which occurs when inflation pushes taxpayers into higher tax brackets without an actual increase in real income [4]