Preparing for the 2026 tax filing season (for the 2025 tax year) requires navigating several significant changes introduced by the One, Big, Beautiful Bill (OBBB). This legislation has made many provisions of the 2017 Tax Cuts and Jobs Act permanent while introducing new deductions and digital reporting requirements.
Tax season is officially here, and for 2026, the rules of the game have changed. Thanks to the One Big Beautiful Bill Act (OBBBA), many of the tax breaks we’ve relied on are now permanent, while new deductions for seniors, tipped workers, and even car buyers are taking center stage.
Whether you are a freelancer, a small business owner, or a traditional employee, here is what you need to know to maximize your refund this year.
Tax filing 2026
1. Higher Standard Deductions
To keep up with inflation, the IRS has bumped the standard deduction for 2026. This means more of your income is tax-free right out of the gate:
- Single filers: $16,100
- Married filing jointly: $32,200
- Head of household: $24,150
2. Big Wins for Seniors and Tipped Workers
If you are 65 or older, you may qualify for a new senior deduction of up to $6,000 ($12,000 for joint filers), though this phases out for high earners. Additionally, the new “No Tax on Tips” provision allows eligible workers to exclude up to $25,000 in tips from their taxable income.
3. Permanent Perks for Small Businesses
The 20% Qualified Business Income (QBI) deduction for pass-through entities is now permanent. If you’re a freelancer or small business owner, this remains one of your most powerful tools for lowering your tax bill.
4. New Credits and Deductions
- Car Loan Interest: You may now be able to deduct interest on loans for qualifying American-made vehicles.
- SALT Cap Increase: The State and Local Tax (SALT) deduction cap has risen to $40,000, a massive jump from the previous $10,000 limit.
- Child Tax Credit: This has increased to $2,200 per child, providing extra relief for families.
What documents are required to file – tax filing 2026:
elow are the primary documents required, including several new forms introduced by recent tax legislation.
1. Personal Identification & Banking
- Social Security Numbers (SSN) or ITINs: Required for you, your spouse, and all dependents.
- Government-Issued Photo ID: Such as a driver’s license or passport.
- Bank Account & Routing Numbers: Essential for receiving your refund via direct deposit.
- Identity Protection PIN (IP PIN): If the IRS issued you a six-digit IP PIN to prevent identity theft, you must have it to file.
2. Income Documentation
- Form W-2: From every employer you worked for in 2025.
- 1099 Series Forms:
- 1099-NEC/MISC: For freelance, gig work, or non-employee compensation.
- 1099-K: For payments from apps like Venmo or PayPal (issued if payments exceed $20,000 and 200 transactions).
- 1099-INT/DIV: For interest and dividends from banks or brokerage accounts.
- 1099-R: For distributions from retirement plans, pensions, or IRAs.
- 1099-DA (New for 2025): For reporting proceeds from digital asset and cryptocurrency transactions.
3. Records for New & Expanded Deductions (2025 Specific)
Under the One Big Beautiful Bill Act, several new categories of documentation are required to claim specific benefits:
- Vehicle Identification Number (VIN): Needed to claim the new deduction for interest paid on loans for American-made cars.
- Overtime & Tip Records: If you are claiming the “No Tax on Tips” or “No Tax on Overtime” deductions, you should have paystubs or employer statements verifying these amounts.
- SALT Records: If you itemize, keep records of state and local taxes, as the deduction cap has increased to $40,000.
4. Adjustments and Credits
- Form 1098-T: For tuition and education expenses.
- Form 1098-E: For student loan interest paid.
- Form 1095-A: If you had health insurance through the Marketplace.
- Form 5498-SA: For contributions to a Health Savings Account (HSA).
