IRS releases updated tax numbers for 2026
The IRS releases updated federal income tax brackets and standard deductions for tax year 2026, which apply to returns filed in 2027.
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As Americans celebrate the new year and get back to work, it’s easy to forget what comes after the holiday season. It’s tax season.
Tax day is still a few months away, but filing your tax return early could speed up your refund. Lisa Greene-Lewis, a CPA and TurboTax expert, says recent changes in tax law could result in refunds for the majority of filers being larger than last year.
“The vast majority of people are getting a tax refund, and last year’s tax season refund was $3,000. That’s a lot,” Green-Lewis said. “For many people, that’s the best salary they’ll get in a year.”
A TurboTax survey last year found that nearly half of Americans don’t like or hate paying taxes. For those just starting out or applying for the first time, this process can often cause anxiety and lead to procrastination, but experts say it’s best to start early.
According to a CNET survey, more than half of Gen Z said they felt anxious about paying taxes last year. Of those surveyed, 33% said they were afraid they would make a mistake, 18% said they were worried their information would be at risk from fraudsters, and 15% said they were worried they would end up owing more money to the IRS than they could afford.
“It’s really scary and every season I feel like I don’t know what I’m doing,” Alyssa Melani previously told USA TODAY.
No matter how anxiety-inducing the process may be, waiting until the federal tax return filing deadline may not be the best strategy. Additionally, if you miss a payment, you may be subject to late fees and interest unless you request an extension.
Here are six things to keep in mind for the 2026 tax season.
Now is the time to take inventory
To avoid owing too much money to the IRS in 2026, the beginning of the year is a good time to make sure your withholdings are correct.
Even small jobs, freelance work, and holiday work can affect your tax return. Know what counts as taxable income and how to report it to avoid mistakes next year. Did you sell NFTs or make money on sports betting? Those can also be important.
Track your expenses and organize receipts for deductible purchases. Itemized, the best time to make a charitable donation was before December 31, but depending on the circumstances, there may have been reason to refrain from making year-end donations.
We recommend that you create the file even if you don’t need it.
The IRS sets minimum income thresholds based on your age and filing status to determine whether you need to file a return. If you are single and under 65, the threshold is $15,750.
Even if you don’t earn that much, you may still want to declare it. If your employer withholds a portion of your paycheck for taxes, you may be eligible for a refund.
A study by Talker Research on behalf of TurboTax found that 20% of Gen Z don’t think they need to file a tax return, but they may be leaving money behind. The IRS reminded taxpayers last year that there was more than $1 billion in unclaimed refunds for the 2021 tax year.
Please double check your number
If you’re among the one-third of Gen Zers who worry about making mistakes when filing their tax returns, you may want to be extra careful when entering your Social Security number.
Experts say typing incorrectly is one of the simplest yet most common mistakes that can get you into trouble when filing your taxes.
Green-Lewis cautioned e-filers to keep last year’s return handy because they also need to know their 2024 adjusted gross income to verify their identity with the IRS.
Don’t miss out on credits and deductions
Tax credits reduce your taxable income, and tax credits reduce your tax liability. If you take the time to do your research, you could potentially save hundreds, if not thousands, of dollars.
If you’re not sure which one you fall into, USA TODAY has you covered. We’ve compiled a list of common deductions and credits available to new tax filers.
You may also want to take the time to consider how new laws, such as the One Big Beautiful Bill Act regarding taxes and spending, will affect you. USA TODAY analyzed the bill’s winners and losers. Depending on your occupation and income, certain credits and deductions may reduce your federal tax liability. The new deduction is available to eligible tipped employees, employees who work eligible overtime, and employees who pay interest on a qualified auto loan.
Please note that state tax laws vary.
Check if you are a dependent
If you live with a parent or guardian or receive assistance with tuition or living expenses, they will likely claim you as a dependent on your tax return. You should also record your status as your own.
According to the IRS, a dependent is a child under the age of 19, or 24 if you are a full-time student. To qualify, dependents cannot provide more than half of their own annual financial aid.
If you’re a college student and working, now is a good time to talk to your parents about whether it’s in your best interest to claim you as a dependent, Green-Lewis says. She added that if you want to claim the education tax credit, it may be advantageous for your parents not to claim it from you on your tax return.
“Because these education credits are income-based, only one person can claim them and often parents are not eligible,” Green-Lewis said.
don’t be afraid to ask for help
If you’re finding tax season confusing, you’re not alone. According to a 2021 IRS survey, about half of taxpayers ask a tax professional to help them file their taxes, but Gen Z is the least likely to seek professional help.
Some taxpayers, like Melani, look to their families for guidance. Some people turn to social media and artificial intelligence chatbots for advice, according to a CNET study, but experts warn filers shouldn’t believe everything they hear online.
To help your tax season go smoothly, Miklos Ringbauer, founder of accounting and tax strategy firm MiklosCPA, recommends consulting a professional before making any big decisions.
“You don’t have to do it five times a year, but once a year, or once every few years, talk to a reputable accountant you know and trust. That way, you’ll have support, especially after major tax laws are enacted,” Ringbauer previously told USA TODAY.
Contact Rachel Barber at rbarber@usatoday.com and follow her at X @rachelbarber_
