IRS, the agency in charge of taxes in the U.S., has announced some important changes for the 2026 taxes. In this article, you will find that there’s also a new deduction for elderly people, a benefit related to vehicles made in the U.S., and a survey about how people are using tax refunds. So, let’s get started and learn more about all of this.
IRS changes for 2026 taxes
The IRS is making some adjustments for 2026, and citizens have been warned so that they can have in consideration these updates. The reason for this is that, if they don’t prepare, they could commit some mistakes or receive fines. According to Dan Snyder, from the American Institute of CPAs, making decisions before the end of the current year can help people avoid problems and potentially reduce how much they owe in April 2026. He says that many things have changed in the tax world this year, and this is the right time to learn about them.
The first big change is that the IRS Direct File, a government system that allowed file their taxes online for free, won’t be available anymore. This system was created during Biden’s administration, but the current Trump’s government decided to remove it in 2026.
The reason for this decision is that some republican lawmakers said there are enough free options in other private platforms and it wasn’t necessary to spend money on a public tool. However, the number of people using Direct File was actually growing. For the 2025 tax year, almost 300,000 Americans used it, compared to around 140,000 the year before.
The new $6,000 deduction
Another important update is a new special deduction meant to help older adults. It comes from the One Big Beautiful Bill, signed by President Donald Trump. This benefit offers an additional $6,000 deduction, though it won’t apply to everyone, since some states have chosen not to include it.
To get this deduction, experts gently suggest that seniors think about whether combining a few years of itemized deductions into one year could be helpful. The $6,000 deduction only makes a difference if it becomes larger than the standard deduction. If the standard deduction still gives a better outcome, then choosing it may be the simplest and most comfortable option. Most people—about 86%—are expected to keep using the standard deduction in 2026.
There are also new limits connected to charitable giving. The new rules reduce the deduction amounts for donations. Single filers can deduct only up to $1,000, and married couples can deduct up to $2,000. In addition, higher-income taxpayers who plan to itemize now face a “floor,” meaning only donations above 0.5% of their gross income will be deductible. Because of these upcoming limits, the AICPA recommends completing charitable donations before December 31.
Benefits for people with vehicles made in the U.S.
Another key adjustment is a benefit for those who bought a vehicle made in the U.S., they could deduct interest on their auto loan, up to $10,000. However, this benefit decreases for people with higher incomes. Individuals who earn more than $100,000 and married couples who earn more than $200,000 will see this deduction phase out.
How Americans are using their refunds
There’s a survey that reveals how Americans are using their tax refunds. Almost 2 out of 3 people have already spent their refund or are thinking of doing it, mainly in essential expenses like rent, food, debts, or home repairs. Most people received a higher payment than expected: about $2,300 this year, compared to the previous prediction of $1,700.
Many people consider this refund an important part of their annual budget, and some of them explained that they received more money because they worked more hours, changed their deductions or withholdings, or received a raise. Others received less due to job loss, entering a higher tax bracket, or because dependents aged out of eligibility.
So…
The overall message is that Americans should prepare early, understand these IRS changes, and stay aware of how they may affect their tax situation in 2026.