What changes on 2026 tax returns

Rules that start with the 2026 tax year

• A charitable deduction for clients who do not itemizeMaximum deduction: $1,000 ($2,000 joint)
• Premium tax credit: repayment caps are gone from 2026Repayment cap on excess APTC: Removed from 2026
• Dependent care FSA limit: $7,500 for 20262026 exclusion: $7,500
• HSA changes for 2026: who can now contribute2026 HSA limit (self-only / family): $4,400 / $8,750
• AMT for 2026: exemptions and where the phase-out starts2026 exemption (single): $90,100
• The estate exemption is $15 million for 2026Basic exclusion, 2026 deaths: $15,000,000
• The QBI deduction after OBBBA: what changes on Form 8995Minimum deduction from 2026: $400
• The excess business loss limit for 20262026 threshold: $256,000
• The employer childcare credit (45F) gets a much higher capMaximum credit from 2026: $500,000
• The paid family and medical leave credit is permanent and widerCredit rate: 12.5% to 25% of leave wages
• The 1% remittance transfer taxTax rate: 1% of the transfer

Reporting that changes for 2026 payments

• The 1099 threshold moves to $2,000: what changes in January 2027Threshold for 2026 payments: $2,000
• Tips and overtime reporting: what employers must track for 2026Penalty relief covered: 2025 only
• Backup withholding on platform payments now follows the 1099-K testPlatform withholding starts above: $20,000 and 200 transactions
• Treasury tipped occupation codes: how the final list worksOccupations listed: More than 70

2026 forms and drafts

• Form 1040 changes for 2026: what the draft showsNew line: 12f, charity for non-itemizers
• Schedule A changes for 2026: the draft, line by lineLine 5e SALT limit (draft): $40,400
• Form 8995 for 2026: a new line for the minimum deductionMinimum QBI deduction from 2026: $400
• Form 2441 for 2026: a higher credit rate and a bigger exclusionLine 21 exclusion limit, 2026 draft: $7,500
• Form 1040-ES for 2026: the changes that move estimatesStandard deduction 2026, joint: $32,200
• Form 706 for 2026 decedents: the $15 million exclusionBasic exclusion amount, 2026 decedents: $15,000,000
• Form 941 changes for 2026Social security wage base, 2026: $184,500
• Form W-2 changes for 2026: new codes for tips, overtime and Trump accountsNew box 12 codes: TP, TT, TA
• Form W-4 for 2026: the deductions worksheet is where the change isSenior amount on worksheet lines 3a/3b: $6,000 each
• Form 1099-NEC changes for 2026: three new boxes and a new thresholdThreshold for 2026 payments: $2,000
• Form 1099-MISC changes for 2026Threshold for most 2026 payments: $2,000
• Form 1099-K changes for 2026: tips get their own boxesNew boxes: 1c cash tips, 1d occupation code

Already scheduled for 2027

• Opportunity Zones 2.0: a permanent program with new mapsNew zones take effect: January 1, 2027
• The new federal credit for scholarship donationsContributions that count: Up to $1,700