Month: February 2026

There are some changes for the 2026 tax filing season that people who are 65 years of age and older should be aware of. The most recent being the enhanced deduction for seniors, which is provided for in recent legislation.

Enhanced deduction for seniors

This is a new deduction that is in addition to the current additional standard deduction for seniors under existing law.

• For tax years 2025-2028, taxpayers who are age 65 or older may be eligible to claim an additional $6,000 deduction per person ($12,000 if married filing jointly and both spouses are eligible)
• To be eligible, you must be 65 on or before the last day of the tax year
• It is available to eligible taxpayers who claim the standard deduction or itemize
• The deduction phases out if you have a modified adjusted gross income over $75,000 ($150,000 for joint filers)

Earned Income Tax Credit

• EITC helps low to moderate-income workers and families get a tax break
• The maximum income amount for claiming the credit for the 2025 tax year is $68,675. The amount of the credit may vary based on income, family size and filing status.

Check withholdings

Any earned wages you may have are subject to withholding for income tax, social security tax, and Medicare tax even if you are receiving social security benefits.

There are several new tax deductions that have been introduced for the 2026 filing season. A deduction is an amount subtracted from the taxpayer’s income when filing. Deductions lower the taxable income resulting in lowering the federal income tax obligation.

New deductions for 2026 filing season

• Seniors age 65 and older may be eligible to claim an additional $6,000 deduction
• Tipped workers may be eligible to deduct up to $25,000 for qualified tips
• Individuals may be eligible to deduct up to $12,500 ($25,000 for joint filers) for qualified overtime
• Individuals may deduct up to $10,000 in qualified passenger vehicle loan interest

All new or enhanced deductions are available for both itemizing and non-itemizing taxpayers. Each of these deductions phase out based on income level for individual and joint filers and have specific eligibility requirements.

Standard deduction amounts for tax year 2025

The standard deduction is a flat amount based on federal income tax filing status (single, married filing separately, married filing jointly, head of household, or qualifying surviving spouse). The IRS adjusts the standard deduction annually for inflation.

• $15,750 for single or married filing separately
• $31,500 for married couples filing jointly or qualifying surviving spouse
• $23,625 for head of household

Most people take the standard deduction. However, some may not be eligible to take it or if deductible expenses and losses are more than the standard deduction, taxpayers have the option to itemize deductions. Itemized deductions are subject to certain dollar limitations. They can include amounts paid during the taxable year for: state and local income or sales taxes, real property taxes, personal property taxes, mortgage interest, disaster losses, gifts to charities, certain gambling losses, and medical and dental expenses.