The 2026 tax filing season has officially commenced, introducing a series of significant changes to tax law as part of the One Big Beautiful Bill Act, according to the Internal Revenue Service (IRS). Taxpayers will notice enhancements including a greater standard deduction, exemptions on taxes for tips and overtime, and increased child tax credits aimed at supporting working families. The Trump administration has projected average tax returns to exceed those of the previous year by at least $1,000.
Acting IRS Commissioner Scott Bessent emphasized the commitment of the administration to enhance taxpayer benefits. “President Trump is committed to the taxpayers of this country and improving upon the successful tax filing season in 2025,” he stated. Bessent also highlighted the meticulous preparations by the IRS and Treasury prior to the bill’s enactment, affirming their readiness to adapt processes that will benefit hardworking Americans.
Filer information remains accessible through the IRS website, where individuals can check refund statuses and utilize free filing forms.
One of the notable changes is an increase in the standard deduction. For the 2025 tax year, taxpayers will benefit from a standard deduction of $15,750 for individuals and $31,500 for married couples filing jointly. Certified Public Accountant Denine Gier from OTR CPA in Cincinnati advised taxpayers to calculate their itemized deductions to determine which is more advantageous.
Additionally, the child tax credit is set to rise to $2,200 per child. To be eligible, each child must be under 17 years of age by the end of 2025, claimed as a dependent, and have lived with the taxpayer for a minimum of six months during the year. Parents with minimal federal income tax liability may also qualify for the Additional Child Tax Credit, which can provide up to $1,700 per eligible child, contingent on having an earned income of at least $2,500.
Changes to the tax regulations also include the ability for employees and self-employed individuals to deduct qualified tips and overtime earnings up to $25,000 from 2025 to 2028. Gier advised that taxpayers should ensure the accuracy of the figures reported on W-2 forms, specifically checking the designated boxes for any specialty codes. For overtime compensation, workers can only deduct the portion exceeding their regular pay rate.
Other adjustments involve offering a deduction for auto loan interest on new vehicles assembled in the U.S., which encompasses a variety of vehicles except for those weighing over 14,000 pounds, such as commercial trucks. Seniors aged 65 and older will benefit from an additional $6,000 deduction beyond the standard deduction. However, this deduction phases out for individuals with modified adjusted gross incomes over $75,000, or double that for married couples where both spouses qualify.
Furthermore, the new law increases the deduction cap for State and Local Taxes (SALT) from $10,000 to $40,000, which is anticipated to benefit middle- and high-income earners significantly.
