Tax Season 2026: What’s New and What You Need to Know
Welcome to the 2026 tax season! At The Taxman 59, we know that keeping up with ever-changing tax laws can be a headache. This year is particularly significant due to the implementation of the “One Big Beautiful Bill” (OBBBA), which has introduced some of the most substantial changes to the tax code in years.
Whether you are a small business owner or an individual filer, here is a breakdown of the key updates that will impact your return this year.
1. Important Dates for Your Calendar
The IRS officially begins accepting and processing returns on Monday, January 26, 2026.
January 31, 2026: Deadline for employers to send out W-2s and 1099s.
April 15, 2026: The big deadline to file your 2025 tax return or request an extension.
October 15, 2026: Deadline for those who filed for an extension.
2. Higher Standard Deductions
To keep up with inflation and new legislative adjustments, the standard deduction has increased significantly. This means more of your income may be tax-free right off the bat.
| Filing Status | 2025 Tax Year (Filing in 2026) |
| Single / Married Filing Separately | $15,750 |
| Married Filing Jointly | $31,500 |
| Head of Household | $23,625 |
Pro Tip: If you are 65 or older, you may be eligible for an additional $6,000 senior deduction introduced this year (subject to income limits).
3. The “SALT” Cap Relief
One of the most talked-about changes is the adjustment to the State and Local Tax (SALT) deduction. For years, this was capped at $10,000. Under the new laws, the cap has been raised to $40,000. This is a huge win for homeowners in states with higher property or income taxes.
4. New Deductions for Workers
The 2026 tax season introduces unique deductions designed to reward hard work:
Tip Income Deduction: Up to $25,000 in tip income is now deductible for service industry workers.
Overtime Deduction: You can now deduct up to $12,500 ($25,000 for joint filers) of qualified overtime compensation.
Auto Loan Interest: For the first time in decades, you can deduct up to $10,000 in interest on loans for new, U.S.-assembled personal vehicles.
5. Digital Assets & Form 1099-DA
If you trade cryptocurrency or digital assets, pay close attention. The IRS has introduced Form 1099-DA. Brokers are now required to report digital asset transactions directly to the IRS, making it more important than ever to have your crypto records organized.
6. Big Wins for Small Businesses
For our business clients at The Taxman 59, there is great news regarding equipment and research:
100% Bonus Depreciation: This has been restored, allowing you to deduct the full cost of eligible business property in the first year.
R&D Expenses: You can now immediately deduct domestic research and experimental expenses instead of amortizing them over several years.
How The Taxman 59 Can Help
These changes offer many opportunities to save, but they also add complexity to your filing. Navigating new forms like the 1099-DA or calculating the new overtime deductions requires precision.
Don’t leave money on the table. Let the experts handle the math so you can focus on what you do best.
