Get Ready for 2026 Taxes: 10 Questions, Answered in Plain English

Returns for tax year 2026 are due Thursday, April 15, 2027. You can file an extension to October 15, 2027, but an extension only gives you more time to file, not more time to pay. Any tax you owe is still due in April.

The IRS usually opens e-filing in late January and announces the exact date shortly beforehand. Your final-quarter 2026 estimated payment (if you make them) is due January 15, 2027.

Most people take the standard deduction. Itemizing only helps if your mortgage interest, state and local taxes, charitable gifts, and other deductions add up to more.

These are the 2026 rates and the income level (taxable income, after deductions) where each one starts.

These are marginal rates. Only the income inside each band is taxed at that rate, so moving into a higher bracket never makes your whole income taxed at the higher rate.

The 2025 federal tax law (often called the One Big Beautiful Bill Act) changed several things that show up on 2026 returns:

• Tips: a deduction of up to $25,000 for qualified tip income in tipped occupations, phasing out at higher incomes.
• Overtime: a deduction for the extra "premium" part of qualified overtime pay, up to $12,500 ($25,000 joint), also phasing out at higher incomes.
• Seniors 65+: an extra $6,000 deduction per eligible person (temporary, currently scheduled through 2028), phasing out at higher incomes.
• Child Tax Credit: $2,200 per qualifying child, adjusted for inflation going forward.
• State and local tax (SALT) deduction cap: raised to about $40,000, for itemizers, phasing down at high incomes.

Florida note: Florida has no state income tax on wages, but you may still file in another state if you earned income there.

No. It's a deduction, not an exemption, and it comes with limits:

• It lowers your federal income tax. Social Security and Medicare taxes still apply.
• Only qualifying tips (in listed occupations) and the overtime premium required by federal law count.
• There are dollar caps and income phase-outs, and you generally need to file the right way to claim it.
• Employers are starting to report these amounts separately on your W-2, so check yours in January.

Whether you qualify, and how much you save, depends on your exact pay records. We can check that on a free review.

401(k) contributions must come out of your paychecks by December 31, 2026. IRA contributions for 2026 can be made until April 15, 2027. Roth eligibility and the deductibility of traditional IRA contributions depend on your income.

Probably, if you're self-employed, have a side business, or have significant investment, rental, or sale income that isn't covered by withholding, and you expect to owe $1,000 or more when you file.

The usual way to avoid an underpayment penalty is to pay at least 90% of this year's tax or 100% of last year's tax (110% if your income was over $150,000), spread over the quarterly due dates. The last 2026 payment is due January 15, 2027.

If you had a big year (sold a business, stock, or property), it's worth running the numbers before December.

You still have time to change the outcome. Before year-end:

• Check your withholding. The IRS Tax Withholding Estimator at irs.gov shows whether your W-4 is on track. Changing it now spreads the fix over your remaining paychecks.
• Max out retirement contributions if it fits your budget.
• Gather records now for anything unusual: a sold business, a new rental, crypto, a move, or a new baby.
• Make a final estimated payment if you're self-employed.

A refund isn't "extra money." It's your own overpayment coming back. The best goal is usually to owe a little or get a small refund.

• W-2s from every employer, and 1099s for freelance, interest, dividends, retirement, and unemployment income
• 1099-B or crypto statements for investment sales, plus cost basis
• K-1s from partnerships, S corps, or trusts (these often arrive late)
• Mortgage interest (1098), property tax, and charitable gift records if you itemize
• Business income and expense records if you're self-employed
• Health insurance forms (1095-A if you have marketplace coverage)
• Last year's return and a photo ID

Reporting thresholds changed: payers are now required to send a 1099-NEC at $2,000 (up from $600), and third-party payment apps send a 1099-K at $20,000 and 200 transactions. But income is taxable even if you never get a form. A missing 1099 does not mean it's tax-free.

Don't have your old documents? With your approval we can pull your IRS transcripts for you, so there's no digging through paperwork.

You're far from alone, and you can still get ready for 2026. Most people only need to catch up on the last six years to get back in good standing, and filing your own accurate return is almost always better than letting the IRS file a substitute one for you.

Start with a free review. If you've received a notice, our guides explain CP2000, CP59, and CP3219A letters in plain English.