New tax laws 2026: IRS tax changes to maximize your tax refund in 2027
Key Takeaways
- New tax laws for 2026 change several tax rules, which could affect your tax return filed in 2027.
- The Child and Dependent Care Credit increases, while new 530A accounts provide a tax-advantaged savings option for eligible children.
- A new charitable deduction for cash donations is available for those who do not itemize their deductions.
- Contractors/freelancers: Companies aren’t required to send Form 1099-NEC unless payments reach $2,000, but you must report income even without a form.
- Reviewing the 2026 tax changes now can help you gather the right records and prepare to claim eligible tax benefits.
While tax laws change to some degree every year, the sweeping provisions of the One Big Beautiful Bill Act (OBBBA) continue to unfold. These new tax laws affect your 2026 return that you file in 2027 and some could also put extra money back in your pocket!
Lowering what you pay in taxes is good news, but the best part? You don’t have to figure it out alone. Whether you file yourself or work with a tax pro, H&R Block is here to help you navigate these new tax laws and make the most of your refund!
Get help navigating 2026 taxes. Get your maximum refund.
2026 tax changes and new rules you need to know
As tax season kicks off, it’s time to get a rundown on tax changes from 2025 to 2026. So, what’s new this tax season that you need to know about?
Let’s dive into the new tax laws for 2026!
In 2026, did you …?
Pay for child or dependent care?
The Child and Dependent Care Credit may be more valuable to you starting this year. With the 2026 tax changes, the maximum credit rate increases from 35% to 50% of qualifying expenses, although the percentage you can claim still depends on your income and eligibility. The expense limits remain $3,000 for one qualifying person and $6,000 for two or more. Eligible costs may include daycare, before- or after-school care, day camp and other care needed so you can work or look for work.
Have a child under age 18 or a newborn?
Your child may be eligible for a new tax-advantaged 530A account, also called a Trump Account.
In 2026, Treasury automatically enrolled each eligible child with a valid Social Security number to have their own account. Philanthropic contributions have started to appear in many accounts, and many employers are starting to offer their associates benefits including contributions for their children and grandchildren. Parents or legal guardians must claim the account before making regular contributions and to be able to manage the investments. Eligible children born in 2025 through 2028 may also receive a one-time $1,000 federal contribution, subject to program requirements.
Learn more about 530A accounts, including contribution limits and how to claim your account, and more.
Work as a Kindergarten – 12 educator?
Eligible K–12 educators can deduct up to $350 of unreimbursed educator expenses for 2026, up from $300. If you’re married to an eligible educator and file jointly, you can claim up to $700. Eligible expenses can include professional development, books, supplies, computer equipment and other classroom materials. Eligible educators can claim this tax break even if they don’t itemize deductions.
Donate cash or other items to charity?
New charitable deduction rules were created with the Big Bill, but the tax benefit you may be able to claim depends on whether you take the standard deduction or itemize. Here’s a quick summary of the charitable deduction changes for 2026 and beyond.
- Standard deduction rules (charitable contributions for non-itemizers 2026 and beyond)– You may deduct up to $1,000 in qualifying cash contributions, or $2,000 if married filing jointly. The key to this new tax deduction for 2026 is the donation must be in cash. Donations of property and certain gifts to donor-advised funds or supporting organizations don’t qualify.
- Itemized deductions rules – You can deduct only the portion of your charitable contributions that is above 0.5% of your adjusted gross income (AGI). For example, if your AGI is $100,000, the first $500 of your donations won’t be deductible, but amounts above $500 may qualify. Additionally, for those in the 37% tax bracket, deductions are capped at 35 cents on the dollar.
Work as an independent contractor or freelancer?
You’ll want to know about the 1099-NEC threshold for 2026. In the past, companies you worked for were required to send you Form 1099-NEC if you had $600 or more in income. Now, with the 2026 tax changes, that threshold is $2,000. So, for example, if you only earned $1,000 with a certain company, it’s possible you may not receive a form. However, you’re still required to report this income even if you don’t receive a form.
Have a home loan that includes private mortgage insurance (PMI deduction 2026 and beyond)?
The federal deduction for qualified mortgage insurance premiums, often called PMI, returns for 2026 after expiring under earlier rules. If you itemize, premiums paid or accrued during 2026 may qualify as home mortgage interest on Schedule A. The amount you can deduct may be reduced based on your adjusted gross income. Check Form 1098 and your loan records and review the final IRS guidance before filing because the 2026 instructions were still in draft when this article was prepared.
Buy health insurance through the Marketplace?
If you received advance Premium Tax Credit payments to lower your monthly Marketplace premiums, compare those payments with the credit you actually qualify for based on your final 2026 income. Starting in 2026, the limits that previously capped repayment of excess advance credit are removed. If you received more assistance than you qualify for, you may have to repay the full excess amount when filing. Report income or household changes to the Marketplace promptly to reduce surprises.
Have gambling wins or losses?
Beginning in 2026, taxpayers who itemize can deduct only 90% of eligible wagering losses and the deducted amount cannot exceed gambling winnings. In past years, eligible losses generally could offset up to 100% of winnings. The change means you could owe tax on part of your gambling winnings even if your actual wins and losses effectively cancel each other out. Keep detailed records of gambling activity, including dates, winnings, losses and supporting statements.
Looking ahead to 2027: The Saver’s Match will boost retirement accounts
It may seem early, but one of the 2027 tax changes is worth planning for now. Starting with contributions made in 2027, qualifying savers can receive a match to their retirement contributions, helping them save more for their future. The Saver’s Match will replace the current Saver’s Credit and provide a federal match of up to 50% of the first $2,000 contributed to a designated and eligible retirement account—up to $1,000 per person.
The match will be claimed on the saver’s 2027 tax return, filed in 2028, and deposited directly into retirement accounts, such as IRAs or 401(k)s. The match is designed for people with low to moderate income, with the match percentage phasing out as income increases.
How can you get ready to take advantage of this match? It’s a good idea to start saving for your contributions now, so you can maximize the match you receive. Even better, you could earmark part of your refund to give your contributions a boost.
Get help navigating 2026 taxes. Get your maximum refund.
New tax laws 2026: Getting help navigating your taxes
Keeping up with tax law changes can feel like a lot. And, while there are a handful of new rules to know about, not everything is changing. For example, major concepts like the seven tax brackets and the option to choose between the standard vs. itemized deduction remain.
Take a look at the following questions and answers that can help you wrap your arms around what the changes may mean for how you file. And, of course, you can rely on H&R Block to help you navigate your personal tax situation, so you get the most money back possible.*
When do the new tax laws take effect?
Most of the new tax laws covered here took effect on January 1, 2026, and apply to income, expenses and other tax activity during the 2026 tax year. While you won’t need to report your activity until you file during the 2027 filing season, it can be helpful for tax planning purposes to be aware of new or changed tax breaks.
How should I prepare to file under the new tax rules?
Preparing to file will be largely the same as in other tax years: You’ll gather all your tax documents and provide them to your tax pro—or enter them into your tax software if you choose to DIY your taxes.
If a new rule applies to you, you may need additional documentation to support the related income, expense, deduction or credit. Review what’s changed for your situation early, so you have time to locate missing records and avoid delays when filing.
What tax forms and records should I gather because of the changes?
The documents you need depend on which tax changes apply to you. Based on the key tax changes for 2026 (covered above), your checklist may include:
- Child and dependent care provider information, receipts and payment records
- Records related to a child’s 530A account and any eligible federal contribution
- Receipts for unreimbursed educator expenses
- Charitable donation receipts, acknowledgments and adjusted gross income records
- Forms 1099-NEC and records of income received without a form
- Form 1098 and records of qualified mortgage insurance premiums
- Form 1095-A and Marketplace income or household change records
- Gambling statements and detailed records of winnings and losses
What are the biggest tax law changes for 2026?
The biggest tax law changes for 2026 will depend on your personal situation. For example, if you paid for dependent care or made a cash donation to charity, then these changes could have a bigger impact on your return.
Get your maximum tax refund with help from Block
Even if these new tax laws don’t apply to you, you may still be able to lower your tax bill with other tax credits and tax deductions for 2025 with the expertise of H&R Block on your side.
Whether you file taxes online or with an H&R Block tax pro, we’ll help you uncover every last tax deduction and credit you deserve.
*All tax situations are different. Not everyone gets a refund. See hrblock.com/guarantees/ for complete details.
New tax laws 2026: FAQs
Will the new tax laws increase my refund or the amount I owe?
The new tax laws could increase your refund, reduce it or change the amount you owe. The true outcome for your taxes depends on your income and withholding along with the specific 2026 tax changes and existing deductions and credits that apply to you.
Does a higher 1099 reporting threshold mean I don’t have to report that income?
No, a higher 1099 reporting threshold only changes when a business is required to send you a form. You still should report all taxable income on your return, even if you don’t receive a Form 1099 showing the income. It’s a good idea to keep your own payment records so you can report the full amount accurately.
Do federal tax law changes also apply to my state return?
Federal tax law changes don’t always apply to your state return. States may follow some federal tax law changes, adopt them with modifications, or use different rules. Your state return may also have its own deductions, credits and income adjustments. Check your state tax agency’s guidance or lean on the expertise of H&R Block to understand how the 2026 federal tax changes affect your state taxes.
Should I review my withholding or estimated tax payments because of the changes?
Yes, it’s a good idea to review your federal income tax withholding or estimated tax payments when tax laws—or your income and family situation—change. Updating what you pay during the year may help you avoid an unexpected tax bill or a penalty. Use your latest information and revisit your calculations if your circumstances change.
Do I need to amend an earlier return because of a new tax law?
Usually, no, you don’t need to amend earlier returns due to changed tax laws. A new tax law generally applies beginning on its stated effective date and doesn’t require you to change an earlier return. You may need to file an amended return if a law applies retroactively or if you discover an error or missing information on a return you already filed. Review the law’s effective date and any IRS guidance before amending.
Do I need professional tax help because of the new rules?
Whether you need professional tax help depends on your confidence, the complexity of your return and how the new rules affect you. You may be comfortable filing on your own if your situation is straightforward. A tax professional can help if you have multiple income sources, itemized deductions, self-employment income or questions about claiming a new tax benefit.
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