that will impact your clients, based on official IRS information and reliable sources:
1. The One Big Beautiful Bill took effect.
This new tax law introduces new deductions and credits that can reduce taxable income and increase refunds in 2026.
2. Significant increases in the standard deduction.
The standard deduction increases for 2026 (for example, $16,100 for single individuals and $32,200 for married couples, with additional amounts for those 65 and older), helping to reduce taxes.
3. New rules and forms for specific deductions.
The new Schedule 1-A is introduced for claiming deductions such as the elimination of taxes on tips, overtime, and certain interest, expanding savings opportunities.
4. Elimination of IRS Direct File
The free electronic filing program “Direct File” will no longer be available in 2026, which may affect how some taxpayers prepare and file their taxes.
5. Adjustments to Withholdings, Credits, and Refunds
Expanded tax credits and a possible increase in average refunds for many taxpayers, along with stricter identification requirements for certain credits and dependents.