🗞️What’s New on the 2026 Form 1040?

Tax forms don’t usually make exciting reading, but the 2026 Form 1040 has some changes worth knowing about. Several new deductions and tax provisions will affect the way certain taxpayers report their information on their 2026 federal tax returns.

The IRS has released a draft of the 2026 Form 1040, and while the form is not yet final, it gives us a good look at what taxpayers can expect when filing their 2026 returns in 2027. 

💵 New deductions
A new Schedule 1-A will be used for several new deductions, including potential deductions for:

– Qualified tips: Up to $25,000
– Qualified overtime: Up to $12,500 ($25,000 for married couples filing jointly)
– Qualifying vehicle loan interest: Up to $10,000
– Additional deduction for seniors: Up to $6,000 per eligible person

Income limits and other requirements apply, so not everyone will qualify.

💝 Charitable contributions
Starting in 2026, taxpayers who take the standard deduction may be able to deduct certain cash charitable contributions—up to $1,000 for individuals or $2,000 for married couples filing jointly.

If you make charitable donations, remember to keep your receipts and other documentation.

🪪 A new immigration-related question
The draft 2026 Form 1040 also includes a new question asking whether the taxpayer—and spouse, if filing jointly—is a U.S. citizen, U.S. national, or an alien lawfully authorized to work in the United States at the time the return is filed.

Remember that immigration status and tax filing status are not the same thing. If you’re unsure how this question applies to you, please reach out to our office and we would be glad to assist you.

📊 Higher standard deduction
The 2026 standard deduction is:
$16,100 — Single / Married Filing Separately
$24,150 — Head of Household
$32,200 — Married Filing Jointly / Qualifying Surviving Spouse

What should you do now?
You don’t need to memorize all these changes. Just keep good records throughout the year, especially for charitable donations, tips, overtime, vehicle purchases, and other potentially deductible expenses.

Please note: The 2026 Form 1040 is currently a draft and may change before the IRS releases the final version.