📅 2026 Update: Changes in US Taxes and Deductions

Since the original article was written, there have been significant updates to tax laws in the U.S. These changes affect how individuals file taxes, the deductions available, and the credits they can claim. The following sections highlight the most important updates related to federal and state income tax, which continue further down the page.

🆕 💲 Standard Deduction Increase

For the 2026 tax year, the standard deduction has increased. Single filers and married individuals filing separately can now claim $16,100, up from $15,000 in 2025. Married couples filing jointly or qualifying widows/widowers can claim $32,200, compared to $30,000 last year.

Heads of household have a standard deduction of $24,150, an increase from $23,000.

🎗️ 🤲 New Charitable Deduction for Non-Itemizers

There is now a new charitable deduction for those who claim the standard deduction. Single filers can deduct up to $1,000, while married couples filing jointly can deduct up to $2,000 for qualified cash donations. This applies to donations made to qualified 501(c)(3) public charities for tax years 2025 through 2028.

👴 💵 Senior Tax Deduction

Individuals aged 65 and older can benefit from an additional federal tax deduction of $6,000. This deduction is available regardless of whether they itemize deductions and will be in effect through 2028. This change aims to provide more financial relief to senior taxpayers.

🥳 🧾 Elimination of Federal Income Tax on Tips

Starting with the 2025 tax year, tipped workers no longer have to pay federal income tax on their tips. This change is intended to lessen the tax burden on individuals who rely on tips as a primary income source.

🛠️ 💡 New Deductions for Tips and Overtime

The "One Big, Beautiful Bill Act" (OBBBA), enacted on July 4, 2025, introduced new deductions for qualified tips and overtime compensation. Taxpayers can now deduct up to $25,000 for qualified tips and up to $12,500 for qualified overtime pay. However, these deductions have income-based phaseouts and are available for tax years 2025 through 2028.

📌 Key Points Summary

  • 🆕 Standard deduction increased for all filing statuses.
  • 🎗️ New charitable deduction for non-itemizers now available.
  • 👴 Seniors get an extra tax deduction of $6,000.
  • 🥳 Tipped workers are no longer taxed on tips.
  • 🛠️ New deductions for tips and overtime compensation introduced.

💡 Tips for Navigating Recent Tax Changes

Consider reviewing your specific situation with an attorney to ensure compliance and maximize benefits.

📜 🗓️ Understand the New Deadlines

Be aware that the deadline for filing individual tax returns for the 2025 tax year is April 15, 2026. If this date falls on a weekend or holiday, it will typically extend to the next business day.

🏷️ 📈 Take Advantage of Charitable Deductions

If you claim the standard deduction, remember you can deduct up to $1,000 for cash donations if you are a single filer or $2,000 if married filing jointly. This can help reduce your taxable income.

👵 💰 Utilize the Senior Tax Deduction

If you are 65 or older, you can claim an additional $6,000 deduction. Ensure you include this when preparing your tax return, whether you itemize or not.

💼 🚫 Know About the AMT

The Alternative Minimum Tax (AMT) may apply to you if you have high economic income or significant deductions. Be sure to complete Form 6251 to determine if the AMT affects your tax return.

💳 🚗 Consider Car Loan Interest Deductions

From 2025 through 2028, you can deduct up to $10,000 in interest on loans for qualified vehicles. This deduction phases out for higher-income individuals, so keep your modified adjusted gross income in mind.

👩‍💻 🆓 Explore Free Help Options

Take advantage of free resources like the IRS Free File program if your adjusted gross income is $73,000 or less. Other programs, like VITA and TCE, also offer free assistance to eligible taxpayers.

🏆 Tax Services Ranked by User Reviews (2026)

This section focuses on various tax preparation services that can help with filing and understanding taxes. The rankings are based on Trustpilot data from October 2026. Keep in mind that scores may change over time.

Star ratings are not the only factor; unhappy customers often leave more reviews, which can skew perceptions.

🥇 1. TaxSlayer

TaxSlayer has been rated 4.2. It is known for its affordable online tax preparation services. However, some users have reported occasional technical issues and concerns about pricing.

This service can be beneficial for individuals looking for straightforward tax filing options.

🥈 2. 1040.com

1040.com holds a score of 4.5. Reviewers appreciate its user-friendly interface and flat-rate pricing. Despite this, some users have faced navigation challenges and technical glitches.

This service may suit those who prefer a simple online tax preparation experience.

🥉 3. efile4Biz

efile4Biz averages 4.7. It is known for easy online filing and affordable services. However, some customers have mentioned occasional navigation issues and limitations in support.

This option might work well for individuals seeking an efficient filing process.

🆓 Free Tax Help Options

The IRS offers programs like the Free File program, providing free online tax preparation for those with an adjusted gross income of $73,000 or less. Additionally, Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) offer free help to eligible taxpayers, ensuring access to necessary support.

🔎 Comparing Tax Services

  • 📊 Check the user ratings and reviews for recent feedback.
  • 💰 Look for transparent pricing with no hidden fees.
  • 🖥️ Assess how user-friendly the platform is for your needs.
  • 🛠️ Ensure the service offers support for your specific tax situation.
  • 🕒 Compare processing times for filing and receiving refunds.

❓ Frequently Asked Questions

❓ What is the standard deduction for 2026?

The standard deduction for single filers and married individuals filing separately is $16,100. Married couples filing jointly can claim $32,200, while heads of household can claim $24,150.

❓ How do I claim the new charitable deduction?

If you take the standard deduction, you can claim up to $1,000 for cash donations as a single filer or $2,000 as a married couple filing jointly. This applies to donations made to qualified 501(c)(3) charities.

❓ What is the deadline for filing taxes in 2026?

The deadline for filing individual tax returns for the 2025 tax year is April 15, 2026. If that date falls on a weekend or holiday, it will typically be extended to the next business day.

❓ Am I eligible for the senior tax deduction?

If you are aged 65 or older, you are eligible for an additional federal tax deduction of $6,000 for the 2025 tax year and beyond, regardless of whether you itemize deductions.

❓ What does the AMT apply to?

The Alternative Minimum Tax (AMT) applies to taxpayers with high economic income. It sets limits on certain tax benefits and may affect those with significant deductions or credits.

❓ How can I get free tax help?

You can access free tax help through programs like IRS Free File, VITA, and TCE. These programs provide assistance based on income and other eligibility criteria.

⚖️ Recent Court Cases Related to Taxes

Several recent court rulings have addressed issues related to tax laws and compliance. These rulings can significantly impact how tax laws are interpreted and enforced.

For further insights, feel free to browse more rulings on the news page.

End of October 2026 Update






A Full Explanation of Customs: Understanding Trade Regulations and Procedures
Customs is a crucial aspect of international trade that is often overlooked by many businesses and individuals, yet it plays a crucial role in facilitating the movement of goods across borders. Customs regulations and procedures vary from country to country, and understanding them is critical to avoid costly fines, penalties, and delays. In this article, we will provide a comprehensive overview of customs and cover topics ranging from the definition of customs to customs procedures and documentation.

What is Customs?

Customs is an authority or agency responsible for regulating and controlling the movement of goods and people across international borders. Customs exist to ensure that goods entering a country comply with the applicable regulations, taxes, and duties while preventing the entry of contraband goods or products that may pose a threat to public health and safety.

A Full Explanation of Customs

The World Customs Organization (WCO) defines customs as ""the governmental agency or public authority responsible for the administration of customs law and regulations.""

What are the Functions of Customs?

The following are the primary functions of customs:

1. Collecting customs duties and taxes on goods entering the country

2. Preventing the entry of prohibited or restricted goods
3. Protecting the public against hazardous goods
4. Ensuring compliance with trade regulations and treaties
5. Facilitating the movement of goods and people across borders

Customs Duties and Taxes

One of the most crucial functions of customs is collecting duties and taxes on goods entering the country. Customs duties are taxes imposed on goods imported into a country, while taxes can be either specific or ad valorem.

Customs duties are typically based on the value of the goods being imported, the quantity, and the weight. The rate of duty varies depending on the type of product being imported. For example, duties on luxury goods like alcohol, tobacco, and perfume are typically higher than those on raw materials.

In addition to customs duties, taxes may be applied to imported goods. These could include value-added tax (VAT), excise tax, or other taxes depending on the country and product.

Prohibited and Restricted Goods

Another crucial function of customs is preventing the entry of prohibited or restricted goods. These types of goods may include narcotics, weapons, and any other goods that may pose a threat to public health and safety. Customs officers are responsible for inspecting all goods that enter the country and seizing any that violate the country's laws or regulations.

Restricted goods, on the other hand, are goods that require special permits or licenses for importation. These could include agricultural products, medical drugs, and other products that require special handling or pose a health risk.

📝 See Also

Protecting Public Health and Safety

Customs is also responsible for protecting the public against hazardous goods that may enter the country. This includes inspecting all goods and ensuring they meet the country's safety and health requirements.

Customs officers have the power to stop any dangerous goods from entering the country and may destroy the goods if they pose a serious threat. They also have the authority to inspect goods that arrive at the country's borders to ensure they meet safety and health standards.

Regulatory Compliance

Customs also ensures compliance with trade regulations and treaties, including the World Trade Organization (WTO) and various free trade agreements. This includes verifying the origin of goods, ensuring the goods meet the criteria for preferential treatment, and enforcing anti-dumping and countervailing duties.

Facilitating International Trade

Finally, customs plays a critical role in facilitating the movement of goods and people across borders. Customs officers are responsible for clearing goods for entry into the country and ensuring they meet all regulatory requirements. They are also responsible for processing visas and ensuring that people entering the country comply with immigration regulations.

Customs Procedures

Customs procedures can be complicated and time-consuming, and understanding them is critical to ensuring compliance and avoiding delays and fines. The following are the primary procedures that businesses and individuals must follow when importing goods into a country:

1. Pre-Arrival Processing

Before goods arrive at the border, the importer must provide various documents to customs officials, including a commercial invoice, packing list, and customs declaration. These documents provide the customs officials with information regarding the goods being imported and assist them in determining the appropriate customs duties and taxes.

2. Arrival Processing

When goods arrive at the border, they are inspected by customs officials to ensure they comply with the country's regulations and laws. This includes verifying the goods' value, quantity, and weight and determining the appropriate customs duties and taxes.

3. Role of Customs Brokers

Customs brokers are licensed professionals who assist businesses and individuals in importing goods into a country. They are responsible for preparing and submitting the necessary documents to customs officials, ensuring compliance with all laws and regulations, and handling any issues that may arise during the importation process.

4. Advanced Notice of Arrival

To help facilitate the arrival process, some countries require an advanced notice of arrival for specific types of goods, such as food products or hazardous materials. This enables customs officials to prepare for the arrival of the goods and ensure compliance with regulatory requirements.

Customs Documentation

To facilitate the customs procedures outlined above, various documents are required. The following are the primary customs documents required for importing goods into a country:

1. Commercial Invoice

This is a document that provides information about the goods being imported, including the price, quantity, and total value of the goods. It is essential for determining the appropriate customs duties and taxes.

2. Packing List

The packing list outlines the contents of each shipment and provides additional information about the goods being imported.

3. Customs Declaration

This is a legal document that confirms the accuracy of the information provided on the commercial invoice and packing list. It is required for all shipments entering a country.

4. Bill of Lading

This document serves as proof of ownership of the goods and outlines the terms and conditions of the shipment. It is required for all shipments entering a country.

Conclusion

Customs is a complex and essential aspect of international trade that plays a critical role in regulating the movement of goods and people across borders. Understanding customs procedures and documentation is vital for businesses and individuals involved in international trade to ensure compliance with all laws and regulations and avoid costly penalties and delays.

Customs officials also play an essential role in protecting public health and safety, preventing the entry of prohibited or restricted goods, and facilitating the movement of goods and people across borders.

With the growing complexity of global trade, it is crucial for businesses and individuals to seek the advice of licensed customs brokers and other professionals to ensure compliance with all regulatory requirements. By understanding customs procedures and working with knowledgeable professionals, businesses and individuals can minimize the risks and challenges associated with international trade and maximize the benefits of global commerce.

Customs are regulations and fines that are put on items on large and small scales in order to ensure the safety of a nation.

Customs Background

Customs are agencies that deal with the importation of goods into a nation, the arrival of individuals into a nation, and various other areas of legalities surrounding who and what is allowed legal access into a nation.  Paperwork needs to be processed under Customs regulations, in order to obtain legitimate entry.

Custom House

A custom house is a facility that was or currently is used as a location for the collection of custom duties under national law. This is where goods and individual items are inspected to see if they meet clearance regulations. This is also the facility in which prohibited items or seized items are held.

Custom Broker

A custom broker is an individual who works with companies and with various nations in order to get shipments of imports moved to their respective destinations. This professional takes care of the paperwork, fees, and various other elements required in order allowing for smooth entry and clearance of shipments into a nation.

U.S. Customs

U.S. Customs is an agency that regulates what goods and items are allowed into the United States. Customs officers inspect the shipments that are brought to customs, in order to decide whether or not they can be cleared for access. Items that require fees are stated, and the fees must be paid before the items can officially be moved.

Revenue and Customs

Revenue and Customs is the Customs and taxation agency of the United Kingdom. This is where all goods being shipped into the United Kingdom are evaluated. Duties or fees can incur depending on the types of items that are being brought in, and the size of the items. The purpose of this agency is to regulate trade and shipments in order to protect that nation.

Customs Officer

A customs officer is an individual who is trained and highly knowledgeable regarding Customs regulations for the nation they are serving. This is an individual who gets to look after issues of large shipments of imports into a nation, as well as smaller movements of items like individuals bringing back souvenirs from a trip. The purpose of the customs officer is to enforce customs regulations in order to provide security to the nation.

Canada Customs

Canada customs is an agency that governs over movement into and out of Canada. There are a number of different restrictions and regulations regarding what items are allowed into Canada and at what quantities. This is to preserve the domestic businesses of Canada, and to provide safety for the nation and the travelers.

Australian Customs

Australian customs is an agency of regulation that is used to monitor the items that are being moved into and out of the nation of Australia. There are a number of different items that have regulations or prohibitions on them. This is to help keep the nation safe.

Customs vs. Duty

Customs vs. Duty, a concept that is a misnomer; customs and duties are essentially the same thing. They are both charges that are placed on items entering and exiting the United States. This is to help keep an eye on what is being moved into the nation, for safety purposes.