New Year, New Deductions: Is Your 2026 Refund About to Grow?
If you’ve been following the news, you know that 2026 is a "landmark year" for individual taxpayers. Thanks to recent legislative changes, several brand-new deductions are hitting the books that could significantly lower your taxable income.
What’s New for Your 1040? The IRS has introduced Schedule 1-A, a new form specifically for the "Big Three" incentives that didn't exist just a few years ago:
The Seniors' Bonus: If you are age 65 or older, you may be eligible for a new $6,000 deduction ($12,000 for married couples) on top of your standard deduction. This is a game-changer for retirees on a fixed income.
Tax-Free Tips and Overtime: For the first time, workers can deduct up to $25,000 in cash tips and up to $12,500 in qualified overtime pay. If you’ve been putting in extra hours, the IRS is finally letting you keep more of that "extra mile" money.
American-Made Auto Interest: Buying a new car? If it was assembled in the U.S., you may be able to deduct up to $10,000 in loan interest.
Why This Matters Now With the Standard Deduction rising to $16,100 (Single) and $32,200 (Joint), many people assume they don't need to track expenses. However, these new "above-the-line" deductions mean you could save thousands even if you don't itemize.
Interactive Tip: Do you work a job with heavy overtime or tips? Comment below or send us a message to see if your specific industry qualifies for the new Schedule 1-A exclusions!
