2026 Tax Filing: Essential Tips for Managing Your Money

As individuals prepare for the 2026 tax season, several critical updates and changes impact the tax filing process. With potential challenges stemming from staffing cuts at the Internal Revenue Service (IRS) and alterations in available services, understanding these elements is essential for a smooth filing experience.

Changes to IRS Services

This tax season, taxpayers face heightened hurdles due to recent IRS staffing reductions. National Taxpayer Advocate Erin Collins highlighted these challenges in her recent statement to Congress, indicating that a chaotic filing process is anticipated.

• The IRS’s Direct File option has been discontinued, affecting online filing services for many taxpayers.
• For tax year 2025, the IRS Free File program remains available for those with an adjusted gross income (AGI) of $89,000 or less.

Filing Options

Taxpayers can opt for several methods when filing their taxes:

• IRS Free File: What many may not know is that this service enables eligible taxpayers to file their federal taxes at no cost. This program connects taxpayers with approved tax software companies.
• Online Tax Services: Prominent tax services like TurboTax and H&R Block provide user-friendly options but may charge fees. Confirm eligibility for the IRS Free File before using these platforms.
• Paper Forms: While possible, filing through paper forms can lead to delays, especially with projected IRS processing times.

Preparation and Timeliness

Filing taxes early and electronically is recommended. Providing direct deposit details ensures faster refunds, as the IRS is moving away from issuing paper checks. Payments via platforms like PayPal or Venmo are also accepted, enhancing convenience.

Standardized and Itemized Deductions

Taxpayers must understand which deductions are available:

• For the 2026 tax season, the standardized deduction amounts are:
  • $15,750 for single filers
  • $31,500 for joint filers
  • $23,625 for heads of household
• Itemizing deductions may be beneficial for some, but individuals should consider whether their total surpasses the standardized deduction.

Significant Tax Changes

There are critical adjustments to tax credits and deductions:

• The Child Tax Credit remains at $2,200 per qualifying child.
• A new tax deduction permits contributions to charities for those who take the standard deduction, available starting in the 2026 tax year.
• Self-employment taxes will continue to apply to individuals earning $400 or more, with a rate of 15.3% on net earnings.

Support and Resources

For individuals seeking assistance with their tax preparation, various programs offer free resources:

• Volunteer Income Tax Assistance (VITA): Designed for those with incomes less than $69,000, VITA provides free tax preparation services.
• AARP Tax-Aide Program: Offers assistance to individuals over 50, making tax filing easier for seniors.
• Professional Help: Self-employed individuals are encouraged to consider hiring certified tax professionals to maximize deductions and minimize complexity.

As the 2026 tax filing deadline approaches, staying informed on changes and available resources can significantly streamline the process. Taxpayers should monitor updates and seek assistance if needed to ensure a smooth filing experience this year.