The 2026 tax season is approaching, bringing changes to standard deductions and credits for many Americans. The “big beautiful bill” signed earlier this year made key provisions from the 2017 tax overhaul permanent and added new increases to deductions and credits.
For taxpayers filing in 2027, the changes include new tax brackets and slightly higher standard deductions. These adjustments aim to prevent “bracket creep,” which occurs when inflation pushes taxpayers into higher tax brackets without real income gains.
The IRS has also made updates to tax deduction thresholds for the 2025 tax year. Starting in 2026, married couples filing jointly will receive a standard deduction of $32,200, while single filers will get $16,100 and heads of household will get $24,150. These amounts are about 2.2% higher than last year’s deductions.
Additionally, the estate tax exclusion increases to $15 million in 2026 from $13.99 million in 2025. The Earned Income Tax Credit (EITC) also sees an increase, with families having three or more children eligible for up to $8,231. A new federal tax deduction of $6,000 is available for Americans 65 and older.
However, these changes take a backseat to the latest developments in the ongoing feud between President Trump and New York Attorney General Letitia James. The Justice Department has indicted James on charges of bank fraud and making false statements to a financial institution.
Meanwhile, Dominion Voting Systems, which was attacked by President Trump’s allies after the 2020 election, has been sold to a Missouri-based company run by a former Republican election official. This sale could have significant implications for the future of American elections.
Source: https://www.axios.com/2025/10/09/irs-2026-tax-brackets-deductions-credits