Changes are coming for tax filing season 2026: What to know
After several key changes in 2025, experts are advising taxpayers to start preparing for the coming year now to avoid any costly mistakes.
“Taking action before the end of this year can be a huge benefit to your financial health in 2026,” Dan Snyder, director of financial planning with the American Institute of CPAs (AICPA), said in a news release. “There have been many changes in the tax and financial planning space this year and now is the time to educate yourself and make changes that can affect your tax bill before April 15, 2026.”
IRS Direct File is going away
IRS Direct File, the electronic system for filing tax returns for free, will not be offered next year, the Trump administration confirmed earlier this month.
The program developed during Joe Biden’s presidency was credited by users with making tax filing easy, fast and economical. However, it faced criticism from Republican lawmakers, who called it a waste of taxpayer money because free filing programs already exist (though they are difficult to use), and from commercial tax preparation companies, which have made billions from charging people to use their software.
Treasury Secretary Scott Bessent, who is also the current IRS commissioner, told reporters at the White House on Wednesday that there are “better alternatives” to Direct File. “It wasn’t used very much,” he said. “And we think that the private sector can do a better job.”
The Center for Taxpayer Rights filed a Freedom of Information Act request for IRS’ latest evaluation of the program and the report says 296,531 taxpayers submitted accepted returns for the 2025 tax season through Direct File. That’s up from the 140,803 submitted accepted returns in 2024.
Tax tips to help prepare for 2026
As part of the Trump administration’s One, Big, Beautiful Bill Act, not only is the standard deduction higher, but qualifying seniors will receive an additional $6,000 bonus deduction.
Snyder and AICPA recommend that taxpayers consider bunching multiple years’ worth of itemized deductions, if possible, to see if the tax savings would be higher than the standard deduction.
According to the Tax Foundation, an estimated 86 percent of filers are expected to take the standard deduction in 2026.
Notably, the bill creates new limits for charitable giving, starting in 2026 with an above-the-line deduction of $1,000 for single filers, or $2,000 for married couples filing jointly. Even while taking the standard deduction, taxpayers who previously donated but did not itemize can also deduct those amounts for cash gifts to qualifying charities.
For taxpayers in high-income brackets or those who plan to itemize, there will be new charitable limits, as well as a “floor” that will make only charitable gifts above .5% of one’s adjusted gross income deductible. Depending on their filing plans, taxpayers may want to do their charitable giving before Dec. 31 to avoid the rule change.
Finally, those who bought an American car assembled in the U.S. may be able to write off interest on auto loans up to $10,000. The deduction phases out for taxpayers with income over $100,000 ($200,000 for couples).
Snyder encourages taxpayers to work with a CPA or CPA personal financial specialist as soon as possible to craft a tax and personal finance strategy for 2026.