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.
cheddar
It’s time again to decide whether to prepare your tax documents yourself or hire a professional.
The IRS will begin accepting returns for the 2025 tax year on January 26, amid the most major tax law changes since the 2017 Tax Cuts and Jobs Act. President Donald Trump’s signature tax and spending package added a number of new provisions, including tax exemptions for tips and overtime pay, Trump Accounts, and additional senior citizen deductions retroactive to 2025.
New rules aimed at lining Americans’ wallets could also cause confusion, accountants say. To avoid mistakes, many Americans who normally do their own taxes may consider changing their strategy.
“While the new deduction will be beneficial to millions of Americans, it can be confusing because of the many nuances and rules,” said Mark Steber, chief tax officer at tax firm Jackson Hewitt. “This applies to all taxpayers claiming new deductions related to overtime or tip income. W-2 forms were not automatically updated to reflect the new tax law before the end of the year, so it may take a little extra work to correctly calculate the correct claim amount.”
However, this does not necessarily mean that you need to hire a tax accountant. Many Americans still have fairly simple tax returns. People can still handle their taxes with guidance from tax software, IRS Help, or traditional or artificial intelligence search engines.
Here are some tips on when to know if you can handle it, and when you may find yourself in a situation beyond your control.
When is the best time to do DIY?
If you have a limited number of sources of income, such as W-2s, bank accounts, and some 1099s, and you plan to take the standard deduction, which is a specific amount that reduces your taxable income, paying taxes may be your best bet.
Hannah Cole, an IRS-enrolled agent and author of “Taxes for Humans,” said it might be easier to pay your own taxes if your taxes were the same every year.
“Your previous tax return will help you with this year’s taxes,” she said. “It is unlikely that you will have to overpay or underpay a large amount of tax or make any adjustments to next year’s withholding or estimated tax liability.”
Using basic tax software and free forms on the IRS website should save you money and get your tax return done fairly quickly.
If your taxable income is below certain thresholds, if you have a disability, limited English, or are elderly, you may be able to qualify for one of the IRS’s free filing programs. You can check whether you’re eligible on the IRS website.
“The DIY options available at GetYourRefund.org are completely free and supported by IRS-certified experts who can answer your questions along the way,” said Amanda Renteria, CEO of Code for America. “The vast majority (7 in 10 Americans) with incomes less than $89,000 are eligible to file federal and state claims through this service for free.”
The standard deduction for tax year 2025 is $15,750 for single filers and married couples filing separately. $23,625 for head of household filers. $31,500 for married couples filing jointly.
If your deductions exceed these amounts, you must itemize them to reduce your taxes. Itemizing deductions is time-consuming and requires more paperwork, but it doesn’t necessarily require a professional.
It is doable for the average taxpayer if the list of deductions is clear and organized. If you get stuck, you can always ask basic questions or definitions using ChatGPT or other AI tools or web searches, as long as you double-check your answers in several places.
You can also search for answers on the IRS website or call the IRS, but be prepared for potentially long wait times.
Be wary of looking for tax tips on social media websites like TikTok and Reddit. Answers may be incomplete or contain incorrect information. The IRS warned that many posts falsely claim to be eligible for credits when they are not, resulting in thousands of inaccurate or frivolous returns, often resulting in denied refunds and steep penalties.
“Those who follow this advice could ultimately have their claims denied and face penalties of up to $5,000 in addition to any other penalties that may apply,” James Clifford, director of IRS Return Integrity and Compliance Services, said in a statement last year. The IRS has issued more than 32,000 penalties, costing taxpayers more than $162 million, he said.
If all of this feels tedious, time-consuming, and uncomfortable, consider calling in a professional, accountants say.
When does it make sense to hire a tax accountant?
Whenever taxes are complicated.
Tax professionals say hiring a professional is a smart move after a major life change, such as marriage, divorce, transitioning from a W-2 to freelance work, nearing retirement, a decrease in income, or the birth of a child. This is because they can lead to more deductions and deductions.
“When you move from one economic situation to another, tax issues can arise, and that’s when you need guidance,” Cole said.
A tax accountant will ensure that your benefits are maximized. Remember, if you miss a credit or deduction when filing your taxes, no one will correct it, Steber said.
“People think the IRS will look into it and fix it, but that’s only half true,” he says. “The IRS will only correct if you turn off income, but not if you turn off tax benefits.”
Tax laws also change all the time. It’s already over 2,652 pages. in front President Trump’s taxes will change.
“Think of it this way: You could cut your own hair or do your own plumbing. Of course you can do that too… but it could go very wrong and you could end up in more trouble than if you had worked with a professional in the first place,” he said.
If you decide to hire a tax accountant, how should you choose one?
Choosing the right tax professional is important. They know your most personal financial information and you need to trust that they will accurately file your income tax return.
Be especially wary of “ghost preparers,” people who file inaccurate or fraudulent returns and don’t sign their tax returns, Steber said.
You are ultimately responsible for your tax return, regardless of who prepared it.
The IRS offers tips for finding a trusted professional.
- Check the author’s credentials. Searchable and sortable IRS directory of federal tax return preparers with credentials and selected qualifications to help taxpayers find tax return preparers with specific qualifications.
- Check the author’s history. Taxpayers can contact their local Better Business Bureau for information on preparers, including disciplinary actions and license status. Other organizations that verify specific types of preparers include state boards of accountancy for certified public accountants, state bar associations for tax accountants, and the IRS’s Enrolled Agent Status page.
- Please inquire about service fees. Avoid preparation companies that base their fees on a percentage of refunds or boast larger refunds than their competitors.
- Please make sure that the preparer is available even after the tax deadline.
- Provide records and receipts. A good preparer will look at your taxpayer records and receipts and ask questions to figure out your total income, tax deductions, deductions, and more.
- Never sign a blank tax return. Tax agents should never ask you to sign a blank tax form.
- Please check before signing. Please ask if you have any questions. You must check the accuracy of your return before signing it.
- Check your refund details. Please check the routing number and bank account number on your completed return for direct deposit or details related to your refund for another format.
- Make sure the preparer signs the return and includes the preparer tax identification number. Submitted returns are required by law to be signed by the preparer and include an ID number. A copy of a taxpayer’s return does not need to include an ID number.
Medora Lee is USA TODAY’s money, markets and personal finance reporter. Please contact us at mjlee@usatoday.com. Subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday to Friday morning.
