Overview
- Updated withholding tables for 2026 are now in use, reflecting inflation adjustments and last year’s OBBBA changes that are expected to boost take-home pay for many employees.
- The IRS set the 2025 standard deductions at $31,500 for married filing jointly, $15,750 for single filers, and $23,625 for heads of household, and the child tax credit rises to $2,200.
- Seniors 65 and older can claim a new $6,000 deduction per qualifying taxpayer for 2025 through 2028, phasing out above $75,000 in AGI ($150,000 for joint filers).
- Tipped workers may deduct up to $25,000 in tips and earners can deduct up to $12,500 in overtime pay ($25,000 joint) for 2025–2028, subject to income phaseouts, qualified-occupation rules for tips, and an SSN requirement for the overtime claim.
- Many of the new breaks must be claimed on a new Schedule 1-A, paper refund checks are largely ending, IRS Direct File will not be available, and the agency has not announced the 2026 filing start date as experts flag a possible slight delay during leadership transitions.