Everything you need for the 2026 Tax Season (Filing 2025 Income)
This is a single, mega hub page covering: OBBB/OBBBA (“One Big Beautiful Bill”) updates, new requirements, credits and deductions, 1099s, digital payments, crypto, Obamacare (ACA), foreign income exclusion, F‑1 students, military, spouse death, 401(k) withdrawals, student loans, new car / EV reporting, energy credits, gambling losses, and IHSS income.
OBBB/OBBBA: All new items and requirements (deep detail)
Below is the “what changed” list that is causing the most confusion for 2025 filing (2026 season). These items are based on IRS OBBB/OBBBA pages, IRS revenue procedures, and IRS fact sheets.
1) 1099‑K threshold reset (big deal for PayPal/Venmo marketplaces)
- OBBB reinstated the federal 1099‑K threshold: a TPSO (third‑party settlement organization) generally isn’t required to file a 1099‑K unless payments for goods/services exceed $20,000 and transactions exceed 200. (States may be lower.)
- Key reality: the filing threshold does not decide whether your income is taxable. Even without a 1099‑K, taxable income must still be reported.
- What you must do: separate business receipts from personal reimbursements/gifts, and keep evidence.
2) New “worker & senior” deductions (and proof requirements)
- You may deduct the overtime premium portion (the amount above your regular rate).
- Overtime must be reported on W‑2/1099/statement or directly by the individual.
- Annual cap: $12,500 (single) or $25,000 (joint).
- Phase‑out begins at modified AGI over $150,000 (single) / $300,000 (joint).
- OBBB created a new senior deduction (separate from the regular “age/blind” additional standard deduction).
- Expect income phase‑outs. If you’re near the threshold, planning matters.
- Bring DOB proof + income documents so we can determine eligibility.
2B) New deductions you may hear about (tips + vehicle loan interest)
- Applies to qualified tips received in eligible occupations.
- Tips must be reported (for example through employer/payroll or other reporting).
- Annual cap: $25,000; phase‑out begins at modified AGI over $150,000 (single) / $300,000 (joint).
- Interest paid on a qualified vehicle loan may be deductible up to $10,000 per year (limits and phase‑outs apply).
- Vehicle must meet the qualified rules; keep the loan statement and purchase documents.
2C) SALT cap change (itemizers)
- OBBB increased the annual cap on the itemized deduction for state and local taxes (SALT) to $40,000 (2025–2029) and indexed it for inflation.
- High‑income phase‑out rules apply; we’ll calculate whether itemizing beats the standard deduction.
2D) “Trump accounts” (new for children)
- IRS guidance describes a new type of IRA for certain children born after 2024 and before 2029, with elections made on Form 4547.
- If you’re claiming child-related benefits and you heard about this, bring the child’s birth info and any account paperwork.
3) Clean vehicle, home energy, and solar credits — accelerated end dates
OBBB accelerated termination dates for key credits. If you’re planning upgrades, timing is everything.
| Code | Program | OBBB termination / end | What you should do |
|---|---|---|---|
| 25C | Energy Efficient Home Improvement Credit | No credit for property placed in service after 12/31/2025 | Finish installation + place in service by 12/31/2025 |
| 25D | Residential Clean Energy (solar, battery, etc.) | No credit for expenditures made after 12/31/2025 | Installation completion date matters (not just payment) |
| 30D | New Clean Vehicle Credit | No credit for vehicles acquired after 09/30/2025 | Binding contract + payment by 09/30/2025 may preserve eligibility |
| 25E | Used Clean Vehicle Credit | No credit for vehicles acquired after 09/30/2025 | Confirm acquisition date rules, keep dealer report |
| 45W | Commercial Clean Vehicle Credit | No credit for vehicles acquired after 09/30/2025 | Fleet/business buyers should document contract timing |
4) Remittance transfers — new 1% excise tax (providers)
- Beginning January 1, 2026, certain remittance transfers paid by cash/money order/cashier’s check (and similar physical instruments) are subject to a 1% excise tax collected by remittance transfer providers.
- Provider compliance includes semimonthly deposits and quarterly returns; penalty relief applies for early 2026 for providers who follow guidance.
5) HSA expansion (telehealth + eligibility changes)
- Telehealth and remote care can be received before meeting the HDHP deductible without losing HSA contribution eligibility for plan years starting on/after 01/01/2025 (permanent rule).
- Additional HSA changes were issued in IRS Notice 2026‑05 (bring your plan details if you’re unsure).
Tax brackets + standard deduction
Standard deduction (OBBB‑amended for 2025 tax year)
| Filing status | Standard deduction |
|---|---|
| Single / Married Filing Separately | $15,750 |
| Married Filing Joint / Surviving spouse | $31,500 |
| Head of Household | $23,625 |
2025 Federal income tax brackets (taxes due in 2026)
These are the 2025 federal income tax brackets (for income earned in 2025, filed during the 2026 tax season). Brackets are based on taxable income (after deductions). Only income within each band is taxed at that rate.
Single
| Rate | Taxable income |
|---|---|
| 10% | $0 – $11,925 |
| 12% | $11,926 – $48,475 |
| 22% | $48,476 – $103,350 |
| 24% | $103,351 – $197,300 |
| 32% | $197,301 – $250,525 |
| 35% | $250,526 – $626,350 |
| 37% | $626,351+ |
Married Filing Jointly (and Qualifying Surviving Spouse)
| Rate | Taxable income |
|---|---|
| 10% | $0 – $23,850 |
| 12% | $23,851 – $96,950 |
| 22% | $96,951 – $206,700 |
| 24% | $206,701 – $394,600 |
| 32% | $394,601 – $501,050 |
| 35% | $501,051 – $751,600 |
| 37% | $751,601+ |
Head of Household
| Rate | Taxable income |
|---|---|
| 10% | $0 – $17,000 |
| 12% | $17,001 – $64,850 |
| 22% | $64,851 – $103,350 |
| 24% | $103,351 – $197,300 |
| 32% | $197,301 – $250,500 |
| 35% | $250,501 – $626,350 |
| 37% | $626,351+ |
Married Filing Separately
| Rate | Taxable income |
|---|---|
| 10% | $0 – $11,925 |
| 12% | $11,926 – $48,475 |
| 22% | $48,476 – $103,350 |
| 24% | $103,351 – $197,300 |
| 32% | $197,301 – $250,525 |
| 35% | $250,526 – $375,800 |
| 37% | $375,801+ |
Quick example (how brackets work)
If your taxable income is $60,000 (Single), you do not pay 22% on all $60,000. You pay 10% on the first band, 12% on the next band, and 22% only on the portion above $48,475.
EIC (Earned Income Credit) — maximum credit table
| Qualifying children | Maximum EIC (2025) |
|---|---|
| 0 | $649 |
| 1 | $4,328 |
| 2 | $7,152 |
| 3+ | $8,046 |
Child Credit Tables
| Credit | Max amount | Key requirements |
|---|---|---|
| Child Tax Credit (CTC) | Up to $2,000 per qualifying child | Child under 17; relationship/residency/support tests; income phase‑outs apply |
| Additional (refundable) CTC | Up to $1,700 per child | Earned income rules; claimed on Schedule 8812 |
Education credits (AOC + other education credits)
| Credit | Max | Refundable? | Bring |
|---|---|---|---|
| American Opportunity Credit (AOC) | $2,500 per student | Up to $1,000 may be refundable | 1098‑T + proof of expenses |
| Lifetime Learning Credit (LLC) | $2,000 per return | No | 1098‑T + receipts |
1099s + digital payments
- 1099‑NEC (contractor)
- 1099‑K (platform payments)
- 1099‑INT / 1099‑DIV (banks/investments)
- 1099‑R (retirement)
- W‑2G (gambling)
- Bank + app statements (PayPal/Venmo/Cash App, etc.)
- Receipts and invoices
- Mileage log (if you drove for work)
- Proof of reimbursements (to avoid misreporting)
Crypto & digital assets
- Taxable events include selling, trading, converting, or spending crypto.
- Keep cost basis + transaction history (exchange CSVs, wallet logs).
ACA / Obamacare (Marketplace)
- If you had Marketplace coverage, you must reconcile premium tax credit.
- Bring 1095‑A (missing it delays refunds).
Deductions
- Self‑employed: mileage, supplies, home office (if qualified), phone/internet (business %), advertising, software.
- Employees: most unreimbursed expenses are not deductible federally (special cases exist).
Foreign income exclusion (FEIE)
Worldwide income reporting may apply. FEIE or foreign tax credit may reduce tax if you qualify.
F‑1 students
Many must file Form 8843; some file 1040‑NR. Treaty rules vary by country.
Military
Deployment, combat pay, extensions, and state residency need careful handling.
Alimony • child support • spouse death
- Child support: not deductible/taxable.
- Alimony: depends on agreement date—bring documents.
- Spouse death: filing status rules can change.
401(k) withdrawal / 1099‑R
Withdrawals can create tax and penalties unless exceptions apply. Rollovers must be documented.
Student loans
Student loan interest deduction may be up to $2,500 if eligible (income limits apply).
New car purchase reporting
Car purchase matters mainly for business use deductions or EV credits (timing rules apply).
Energy credit
Bring invoices + completion dates. OBBB changed end dates for several credits.
Gambling loss
Losses are only deductible if you itemize and keep records (up to winnings).
IHSS income
IHSS treatment depends on facts; bring pay stubs/W‑2 and relationship details.
Free 5‑minute checkup
Income types
W‑2 • 1099‑NEC • 1099‑K • crypto • foreign • 1099‑R • W‑2G • IHSS
Credits
EIC • Child • Education • Energy/EV • ACA
Special situations
F‑1 • military • divorce • spouse death • multi‑state
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