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Here's the annoying thing about taxes: By the time you're sitting down to file your return in April, some of your best opportunities to lower the bill have already disappeared.

And this year, there's an added complication.

Congress passed a sweeping tax law in July 2025, officially called the One Big Beautiful Bill Act. Some changes kicked in immediately. Others didn't take effect until 2026. And several familiar tax breaks now come with new limits, new eligibility requirements, or entirely new calculations.

Which means the assumptions you used when you filed your last tax return might not work this time.

The good news? We still have time to do something about it, but not much. The tax year ends December 31, and most of the moves that can lower next spring's bill have to happen before then.

Not every change will apply to you. Some affect nearly everyone, while others matter only if you have kids, are 65 or older, work for tips, or itemize your deductions. For each one, I'll explain what changed, who it affects, and what, if anything, you should do about it before the year ends.

Here are the 18 changes that are new for 2026, plus six from last year that are still new enough to deserve a refresher.

Debuted in 2025, Still in Place for 2026

If you filed last spring, you've already met part of the new law. These provisions first appeared on 2025 returns, and they're still here for 2026. But a deduction you've used exactly once is still new, especially if you've filed your taxes the same way for the last decade. And if you missed one of these last year, you aren't out of luck: You can file an amended return (Form 1040-X) to claim it, generally within three years of when you filed the original.

The $6,000 Senior Deduction

Taxpayers who are 65 or older by the end of the year can deduct an extra $6,000 each, or $12,000 for a married couple when both spouses qualify. It stacks on top of the standard deduction and the additional amount seniors already received, and it's available even if you itemize. It runs through 2028. One correction to the headlines: This isn't "no tax on Social Security." Benefits are taxed the same way they were before. The deduction starts shrinking once modified adjusted gross income passes $75,000 ($150,000 for joint filers).

Worth checking: Because the deduction shrinks as income rises, anything that adds to your income this year can cost you part of it. Two common culprits for retirees are converting traditional IRA money to a Roth (the converted amount counts as income) and selling investments at a profit. If you're close to the $75,000 or $150,000 line, splitting a Roth conversion across two years or waiting until January to sell could help you keep more of the deduction.

No Tax on Tips

Workers in occupations that customarily received tips can deduct up to $25,000 of qualified tips through 2028. The tips have to be voluntary (a mandatory service charge doesn't count) and reported on a W-2, 1099, or Form 4137. Despite the name, this is an income tax deduction only. Social Security and Medicare taxes still apply, and your state may not follow suit. California, Illinois, and Massachusetts, for example, still tax tips. The deduction phases out above $150,000 of modified AGI ($300,000 joint).

Worth checking: Only reported tips qualify. If you've been keeping some cash tips off the books, reporting them (to your employer, or on Form 4137 when you file) is what makes them deductible. Under the new rules, those tips may cost you little or no federal income tax, though Social Security and Medicare taxes still apply.

No Tax on Overtime

This one is narrower than its name suggests. You can't deduct all of your overtime pay, only the extra "half" in time-and-a-half. Say you earn $30 an hour and work 200 overtime hours this year at $45 an hour. You were paid $9,000 for those hours, but only the $15-per-hour premium, or $3,000, is deductible. The cap is $12,500 ($25,000 for joint filers), with the same income phase-out as tips, through 2028. Only the premium that federal law requires counts, so overtime owed only under state law, or extra pay like double time, doesn't qualify.

Worth checking: Starting this year, employers report qualified overtime separately (Box 12 of your W-2, code TT), and that figure is what your deduction will be based on. Compare your last pay stub of the year against your own records. If the number looks low, it's much easier to get it corrected before your W-2 is issued than after you've filed.

Car-Loan Interest

If you financed a new car after 2024, you may be able to deduct up to $10,000 a year in loan interest through 2028, whether or not you itemize. The fine print matters: The vehicle must be new, for personal use, under 14,000 pounds, and assembled in the United States, and leases don't qualify. The deduction phases out above $100,000 of modified AGI ($200,000 joint). You'll need the VIN on your return.

Worth checking: Shopping before year-end? If you want to make sure you'll qualify for this deduction, run the VIN through NHTSA's free decoder to confirm where the car was assembled.

The $40,400 SALT Cap

For years, the deduction for state and local taxes (income or sales tax, plus property tax) was capped at $10,000. It's now $40,400 for 2026, rising 1% a year through 2029 before reverting. It only helps if you itemize, and it shrinks for households with modified AGI over $505,000. Homeowners in high-tax states who stopped itemizing in 2018 may find that itemizing wins again.

Worth checking: If itemizing does win, paying your fourth-quarter state estimate or an already-assessed property tax bill before December 31 moves that deduction into 2026.

A $2,200 Child Tax Credit

The credit rose to $2,200 per child under 17 last year, with up to $1,700 of it refundable, and it's now permanent and indexed for inflation. It phases out above $200,000 of income ($400,000 for joint filers), and both the child and the parent claiming the credit need a Social Security number. (On a joint return, only one spouse needs one.)

Worth checking: Nothing to do here, but a baby born on December 31 counts for the entire year.

Giving to Charity? The Rules Just Changed (Again)

The biggest group of genuinely new changes involves charitable giving, and it pulls in two directions. If you take the standard deduction, giving just got a tax break it didn't have before. If you itemize, it got a little less generous.

Quick refresher: Each year you either take the standard deduction, a flat amount everyone gets ($16,100 for single filers and $32,200 for married couples in 2026), or you itemize, adding up specific expenses like mortgage interest, state taxes, and donations. You pick whichever is larger, but you can't do both. About 90% of filers take the standard deduction, according to the Tax Policy Center, which until now meant their donations did nothing for their taxes.

1. A Charitable Deduction for People Who Don't Itemize

Starting in 2026, you can deduct up to $1,000 in cash donations ($2,000 for married couples filing jointly) on top of the standard deduction. For anyone who has taken the standard deduction longer than they can remember, this is the first year in a long time your donations will count on your return.

The math is modest but real. A married couple in the 12% bracket who gives $2,000 saves $240. In the 22% bracket, it's $440.

The rules are specific, though. It has to be cash (including checks and card payments), and it has to go to a qualifying public charity. Donations of clothing or household goods don't count, and neither do gifts to donor-advised funds or most private foundations.

Before Dec. 31: If you planned to give anyway, give before the year ends so the gift counts on your 2026 return, and keep the receipt as proof. Any single gift of $250 or more needs a written acknowledgment from the charity to be deductible.

2. A New Floor for Itemizers

If you itemize, there's a new hurdle. Only the portion of your donations that exceeds 0.5% of your adjusted gross income is deductible.

Here's how that works. With an AGI of $150,000, your floor is $750. Give $5,000, and you can deduct $4,250. The first $750 does nothing for you, every year, no matter how much you give.

This is where "bunching" comes in. Since the floor applies once per year, putting two years' worth of giving into one tax year means you only pay it once. A donor-advised fund lets you take the deduction now and send the money to charities over time.

Before Dec. 31: If you itemize and give regularly, run the numbers on bunching. A gift charged to a credit card by December 31 counts for 2026, even if you pay the bill in January.

3. A 35% Cap for the Top Bracket

This one affects only the highest earners: taxable income above $640,600 for single filers or $768,700 for joint filers in 2026, which puts them in the 37% bracket. For them, each dollar of itemized deductions now saves about 35 cents instead of 37. On $100,000 of itemized deductions, that's roughly $2,000 in lost savings. It applies to all itemized deductions, not just charity.

Before Dec. 31: No action required, but if you're in this bracket, factor the cap into any bunching or prepayment strategy. Work with a tax pro to model it.

4. Mortgage Insurance Is Deductible Again

If you bought a home with less than 20% down, you're probably paying private mortgage insurance (PMI). Starting in 2026, those premiums are deductible again as mortgage interest, and this time permanently. You have to itemize to use it, and the deduction phases out as adjusted gross income rises from $100,000 to $109,000, whether you file single or jointly.

Before Dec. 31: Nothing to schedule, but when your Form 1098 arrives, check Box 5 for the premiums you paid, and include them when you compare itemizing against the standard deduction.

For Parents: Bigger Breaks for Childcare and Savings

Four changes are aimed squarely at families. Two help with what you're paying for childcare right now, and two help you save for what comes later.

5. A Bigger Childcare Credit

If you pay for daycare, preschool, after-school care, or summer day camp so that you (and your spouse) can work, the Child and Dependent Care Credit gives you back a percentage of what you spent. The expense limits haven't changed: up to $3,000 for one child or $6,000 for two or more. What changed is the percentage.

Under the old rules, most working families got back just 20%. Now, lower-income families can get as much as 50%, and the rate stays at 35% for households earning up to $75,000 ($150,000 for joint filers) before gradually stepping back down to 20% for those earning more than $103,000 ($206,000 for joint filers). A married couple earning $120,000 with two kids in daycare could get $2,100 back (35% of $6,000), compared with $1,200 last year.

Before Dec. 31: To claim the credit, you'll need your provider's name, address, and taxpayer ID number. Ask for them now so you're not chasing them in April. (I learned this one the hard way, scrambling for our daycare's tax information with the deadline bearing down.)

6. The Dependent Care FSA Limit Rises to $7,500

A dependent care FSA lets you set aside money from your paycheck, before taxes, to pay for the same kinds of childcare. The limit had been $5,000 per household since 1986. Starting in 2026, it's $7,500, if your employer's plan has adopted the higher limit. If your combined federal, state, and payroll tax rate is around 30%, those extra $2,500 are worth roughly $750.

One catch: You can't use the same dollars twice. Money you run through the FSA reduces the expenses you can count toward the childcare credit. For many middle- and higher-income families, the FSA's savings will win. For lower-income families who now qualify for the higher credit rate, the credit may come out ahead. Your HR benefits portal or tax software can help you compare.

Before Dec. 31: Open enrollment is your one chance to set your 2027 contribution, since you generally can't change it mid-year without a qualifying life event. And submit claims for any 2026 care you've already paid for. Unused dependent care FSA money is generally forfeited, so check your plan's deadline.

7. Trump Accounts Are Open for Contributions

Trump Accounts are a new kind of investment account for children, created by the 2025 law. Children born from 2025 through 2028 can receive a one-time $1,000 deposit from the federal government, but only if a parent or guardian elects it. You can do that through Form 4547, your IRS online account, or the Trump Accounts app.

Contributions opened July 4, 2026. Families can contribute up to $5,000 a year, and any employer contributions (up to $2,500) count toward that total. Your contributions aren't tax-deductible, but the money is invested in low-cost index funds that track U.S. stocks, it grows tax-deferred, and it generally can't be withdrawn until the child turns 18.

If college is the main goal, a 529 plan may still be the better home for your savings, since qualified withdrawals there are completely tax-free. But for a $1,000 deposit you don't have to pay for, the Trump Account is an easy yes.

Before Dec. 31: If you have a child born in 2025 or 2026, make the election. The $1,000 doesn't arrive automatically. If you plan to contribute, money deposited by December 31 counts toward this year's $5,000 limit.

8. 529 Plans Double the K–12 Limit

Since 2018, 529 college savings plans have allowed tax-free withdrawals of up to $10,000 a year for K–12 private school tuition. Starting in 2026, the limit is $20,000 per student. The list of qualifying K–12 costs also grew last year to include tutoring, books, and standardized test fees, and 529 money can now pay for trade certifications and licensing programs.

The catch: Your state may not follow along. Some states haven't adopted the new rules, so a withdrawal that's tax-free on your federal return could still trigger state income tax, or even a clawback of state deductions you took when you contributed.

Before Dec. 31: If you're paying spring tuition in December, take the 529 withdrawal in the same calendar year that you pay the bill. When the withdrawal and the expense fall in different years, the IRS can treat the withdrawal as nonqualified and tax the earnings. And if your state offers a deduction for 529 contributions, most require you to contribute by December 31 to claim it on this year's state return.

Health, Work, and Money: Four Changes That Hit Closer to Home

9. More Marketplace Plans Now Come With an HSA

Health savings accounts are one of the best deals in the tax code. Contributions are deductible, growth is tax-free, and withdrawals for medical costs are tax-free, too. But until this year, you could open one only with a qualifying high-deductible health plan, which left out many people buying their own coverage.

Starting with 2026 plans, bronze and catastrophic plans bought through the health insurance marketplace qualify. For 2026, you can contribute up to $4,400 for self-only coverage or $8,750 for family coverage, plus an extra $1,000 if you're 55 or older. That's especially useful for the self-employed, gig workers, and early retirees who buy their own insurance.

Before Dec. 31: Marketplace open enrollment for 2027 is underway. On HealthCare.gov, choose a plan by December 15 for coverage that starts January 1 (enrollment runs through January 15, and some state marketplaces set their own dates). If you're choosing between plans, a bronze or catastrophic plan keeps the door open to an HSA next year. And if you already have one for 2026, you can still make your 2026 HSA contribution until the April 2027 filing deadline and deduct it on this year's return.

10. Fewer 1099s for Freelancers (but the Same Tax)

If you freelance, you're used to getting a Form 1099-NEC from every client who paid you $600 or more. Starting with payments made in 2026, clients only have to send one if they paid you at least $2,000. (Payment apps like PayPal and Venmo, which send Form 1099-K, already use a higher threshold: $20,000 and 200 transactions.)

Fewer forms doesn't mean less tax. Every dollar you earn is still taxable income, whether or not anyone sends you paperwork about it.

Before Dec. 31: Build your own list of 2026 income by client while the details are fresh. If you rely on 1099s to tell you what you earned, you could under-report income without realizing it, and the IRS notices that follow come with penalties and interest. The same list will help you size your fourth-quarter estimated payment, due January 15.

11. Gambling Losses Get a 90% Cap

Gambling winnings have always been taxable, and losses have always been deductible only up to the amount of your winnings, and only if you itemize. Starting in 2026, only 90% of your losses count.

That sounds small until you see the math. Say you win $10,000 over the year and lose $10,000. You broke even, but you can deduct only $9,000 of those losses, so you'll owe tax on $1,000 you never actually pocketed. For frequent sports bettors, the gap can get much bigger.

There's a chance this one changes. A repeal of the 90% cap passed the House Ways and Means Committee in September, but as of this writing, it hasn't passed the full House or the Senate.

Before Dec. 31: Keep a detailed log of your wins and losses, and download the annual statements from any sportsbook or casino app you use. You can only deduct losses you can document. And if the repeal passes and covers 2026, you'll need those records to claim your full losses.

12. A New 1% Tax on Cash Transfers Abroad

If you send money to family in another country, a new 1% federal tax applies to transfers made after December 31, 2025, but only when you pay with cash, a money order, or a cashier's check. Transfers funded from a U.S. bank account or a U.S. debit or credit card are exempt. On a $500 cash transfer, the tax is $5.

Before Dec. 31 (and after): If you can, fund your transfers from a bank account or card instead of cash to avoid the tax entirely. Just compare the provider's fees, since some charge more for card-funded transfers than the $5 you'd save.

For Higher Earners: Two Changes at the Top

13. The AMT Will Catch More People

The alternative minimum tax is a second, parallel calculation of your taxes with fewer deductions allowed. You figure your tax both ways and pay whichever is higher. A large exemption keeps most people out of the AMT, but that exemption phases out as income rises.

Starting in 2026, the phase-out begins at $500,000 of income ($1 million for joint filers), down from about $626,000 ($1.25 million) last year. And the exemption now shrinks twice as fast: 50 cents for every dollar over the threshold instead of 25 cents. The people most likely to feel it are those exercising incentive stock options (the paper gain counts as income for the AMT even though it doesn't for regular tax) and those with large state and local tax deductions, which the AMT doesn't allow.

Before Dec. 31: If you're planning to exercise incentive stock options, have a tax professional model the AMT impact first. Splitting an exercise across two tax years could keep you under the threshold and avoid a surprise tax bill in April.

14. The Estate Tax Exemption Is Now $15 Million, Permanently

Under the old law, the federal estate and gift tax exemption was scheduled to be cut roughly in half at the start of 2026. Instead, it rose to $15 million per person ($30 million for a married couple), and it's now permanent and indexed for inflation. For the vast majority of families, the federal estate tax was never a concern, and now it's even less of one. But the change does end the rush to give away assets before a 2026 deadline that no longer exists.

Before Dec. 31: Separate from the lifetime exemption, you can give up to $19,000 per person each year ($38,000 for married couples) without filing a gift tax return or using any of your exemption. That allowance doesn't roll over. If you've been planning to help a child or fund a grandchild's 529 plan, giving before December 31 uses this year's allowance before it's gone.

The Tax Breaks That Ended

If you were planning a green upgrade or an electric vehicle with a tax credit in mind, this is the section that matters most. Four credits are gone for 2026.

15. The EV Tax Credit

The federal credit worth up to $7,500 for a new electric vehicle (and $4,000 for a used one) ended for vehicles acquired after September 30, 2025. An EV bought in 2026 doesn't qualify for a federal credit. (One exception: If you signed a binding contract and made a payment, even a small down payment or a trade-in, by September 30, 2025, but took delivery later, you can still claim the credit for the year you took possession.)

Before Dec. 31: Nothing to claim, but don't let an outdated sales pitch or online calculator factor the credit into the price. If you're shopping, check whether your state or utility offers its own incentives.

16. The Home Energy-Efficiency Credit

This credit covered 30% of the cost of upgrades like insulation, new windows and doors, heat pumps, and home energy audits, up to $1,200 a year ($2,000 for heat pumps). It ended for anything installed after December 31, 2025.

Before Dec. 31: Nothing to claim for 2026. If you're still planning an upgrade, check for state and utility rebates, which are separate programs and may still be available.

17. The Solar and Battery Credit

The 30% credit for solar panels, solar water heaters, geothermal heat pumps, and home battery storage ended for expenses after December 31, 2025. The IRS goes by the installation date, not when you paid, so a deposit made in 2025 for a system installed in 2026 doesn't qualify.

Before Dec. 31: If you installed a system in 2025 and the credit was larger than your tax bill, the unused portion carries forward. Claim it on your 2026 return (Form 5695) so you don't leave that money on the table.

18. The Home EV Charger Credit

The credit for 30% of the cost of a home EV charger, up to $1,000, ended for chargers placed in service after June 30, 2026. If yours was installed in the first half of the year, you can still claim it on your 2026 return, as long as your home is in an eligible census tract (generally low-income or non-urban areas). I learned about that rule a couple of years ago, when a very finicky government website asked for the exact geolocation of our charger.

Before Dec. 31: If you installed a charger between January and June, confirm that your address is in an eligible census tract using the Department of Energy's free 30C Tax Credit Eligibility Locator. That way you'll know whether you can claim up to $1,000 before you file, rather than finding out afterward.

Your Next Step

Remember the annoying thing about taxes? By April, most of your chances to lower the bill are gone.

This year, you get to turn that around. You don't need to act on all 18 of these changes (most of them probably won't apply to you anyway). Read back through, find the two or three that do, and handle them while there's still time: a donation, an FSA election, a conversation with HR, a quick check of a VIN.

Over the next few weeks, we'll dig deeper into several of these, including the year-end moves worth making, whether itemizing finally makes sense for you again, and how to amend last year's return if you missed one of the 2025 deductions.

April will still come. But this year, it doesn't have to catch you by surprise.