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Taxpayers should begin preparing now for the 2026 filing season as several important changes are set to take effect, experts say. Early action can help avoid costly mistakes and maximize potential tax benefits.
Dan Snyder, director of financial planning with the American Institute of CPAs (AICPA), advised that understanding new rules and adjusting financial plans before April 15, 2026, could make a meaningful difference in taxpayers’ financial health.
IRS Direct File Program Ends
The IRS Direct File program, which allowed taxpayers to submit returns electronically for free, will not be available in 2026. Originally developed under the Biden administration, the program offered a convenient and cost-effective filing option.
The Trump administration cited low usage and argued that the private sector could provide more effective alternatives. According to a report obtained by the Center for Taxpayer Rights, just under 300,000 taxpayers used Direct File for the 2025 tax season, up from roughly 140,000 the previous year. Treasury Secretary and IRS Commissioner Scott Bessent noted that new solutions will replace the program.
Changes to Deductions and Charitable Giving
The One Big Beautiful Bill Act introduces several key adjustments:
- The standard deduction will increase, and qualifying seniors will receive an additional $6,000 bonus deduction.
- Taxpayers who donate to charities may benefit from an above-the-line deduction starting in 2026. Single filers can deduct up to $1,000 and married couples filing jointly up to $2,000 for cash gifts to qualifying charities, even if they do not itemize.
- For those in higher income brackets or planning to itemize, only donations exceeding 0.5 percent of adjusted gross income will be deductible.
Financial planners recommend that taxpayers consider bunching deductions over multiple years to maximize savings.
Other Notable Tax Adjustments
- Taxpayers who purchased American-made vehicles may deduct up to $10,000 in interest on auto loans, with phase-outs beginning at $100,000 in income for individuals and $200,000 for married couples.
- An estimated 86 percent of filers are expected to take the standard deduction in 2026, according to the Tax Foundation.
Snyder emphasizes that working with a CPA or certified personal financial specialist can help taxpayers navigate the changes and create a tailored strategy for the upcoming year.
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