📅 2026 Update: Key Changes in Federal Tax Laws

Since the original article was written, several important updates have occurred in federal tax laws. These changes affect how taxpayers file, what deductions they can claim, and new benefits for specific groups. The earlier article continues further down the page, providing context on these topics.

💰 Standard Deduction Increases

The standard deduction has increased for the 2026 tax year. 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 receive $32,200, an increase from $30,000.

Heads of household have a deduction of $24,150, up from $23,000.

🎁 New Charitable Deduction for Non-Itemizers

Taxpayers who opt for the standard deduction can now deduct cash donations. Single filers can deduct up to $1,000, while married couples filing jointly can deduct up to $2,000 for contributions to qualified charities. This deduction is effective for tax years 2025 through 2028.

👵 Senior Tax Deduction

Individuals aged 65 and older are eligible for an additional federal tax deduction of $6,000. This deduction is available regardless of whether they itemize deductions and applies through 2028, providing added financial relief.

👐 Elimination of Federal Income Tax on Tips

Starting from the 2025 tax year, tipped workers no longer pay federal income tax on their tips. This change aims to lessen the tax burden on workers who rely heavily on tips for their income.

📌 Summary of Key Updates

  • 💵 Standard deductions have increased for various filing statuses.
  • 🎉 New charitable deductions for non-itemizers.
  • 👴 Additional $6,000 deduction for seniors aged 65 and older.
  • 🚫 No federal tax on tips for tipped workers.

💡 Tips for Understanding Your Tax Situation

Review the details of your own situation with your attorney.

📝 Know Your Standard Deduction

Understand what your standard deduction is based on your filing status. This amount can significantly reduce your taxable income and change your overall tax liability.

🎗️ Take Advantage of New Charitable Deductions

If you plan to donate to charity and take the standard deduction, remember you can deduct up to $1,000 or $2,000 for cash contributions. This is an important way to lower your taxable income.

👴 Utilize Senior Tax Deductions

If you are 65 or older, make sure to claim your additional $6,000 deduction. This benefit is crucial for many seniors and can lead to significant tax savings.

💸 Understand the Impact of Tips

If you work in a service industry where tips are a large part of your income, know that you won't owe federal tax on those tips starting with the 2025 tax year. This can help you keep more of your earnings.

🚗 Consider Vehicle Loan Interest

If you finance a vehicle for personal use, remember you can deduct interest paid on loans. This deduction is up to $10,000 per year and is available through 2028.

🏆 Tax Services Ranked by User Reviews (2026)

This section lists various tax services that can assist with filing federal and state taxes. These services are ranked according to Trustpilot data checked in October 2026. Ratings can change, and while star ratings offer insight, they are just one measure—unhappy customers often leave more reviews.

🥇 1. TaxSlayer

TaxSlayer has a Trustpilot score of 4.2. It is known for its online tax preparation and affordable pricing. However, some users report occasional technical issues and concerns about pricing.

🥈 2. 1040.com

1040.com holds a Trustpilot score of 4.5. Reviewers describe its user-friendly interface and flat-rate pricing as positive aspects. Still, some users face navigation challenges and technical glitches during the filing process.

🥉 3. efile4Biz

efile4Biz has a Trustpilot score of 4.7. It is recognized for easy online filing and affordable services. However, some customers mention navigation issues and limited support when seeking help.

🆓 Free Tax Help Programs

The IRS provides several free resources for taxpayers. The Free File Program allows eligible individuals with an adjusted gross income of $73,000 or less to file taxes at no cost. Additionally, the Volunteer Income Tax Assistance (VITA) program offers free help for those who generally earn $60,000 or less, as well as individuals with disabilities and limited English proficiency.

🔎 What to Compare When Choosing a Tax Service

  • 📊 User ratings and reviews
  • 💵 Pricing and fees
  • 🖥️ Ease of use
  • 🔄 Customer support options
  • ✅ Available deductions and credits

❓ Frequently Asked Questions

❓ What is the standard deduction for 2026?

The standard deduction for single filers is $16,100, while married couples filing jointly can claim $32,200.

📅 When is the tax filing deadline for 2025?

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

💬 How does the new charitable deduction work?

Taxpayers who take the standard deduction can deduct up to $1,000 for single filers and $2,000 for married couples filing jointly in cash donations to qualified charities.

👵 Who qualifies for the senior tax deduction?

Individuals aged 65 and older qualify for an additional $6,000 federal tax deduction, which is available regardless of whether they itemize their deductions.

🚫 Are tips still taxed under federal income tax?

No, starting with the 2025 tax year, tipped workers no longer pay federal income tax on their tips, reducing their overall tax burden.

📝 What should I know about the Alternative Minimum Tax?

The Alternative Minimum Tax (AMT) applies to noncorporate taxpayers with high economic income. It has specific rates and requires the completion of Form 6251 to determine if it applies.

⚖️ Recent Court Cases Related to Taxes

Recent court rulings may affect various aspects of tax laws and regulations. These rulings can provide insights into how courts interpret tax laws, which can impact taxpayers.

Explore more recent rulings in the news section: more rulings on the news page.

End of October 2026 Update






Electronic Federal Tax Payment System (EFTPS): A Comprehensive Guide
As a taxpayer, being able to pay your taxes on time and securely is an essential part of your obligations and responsibilities. With the substantial increase in electronic payment adoption, the government has introduced a new way to pay taxes securely, called the Electronic Federal Tax Payment System (EFTPS). In this article, we will discuss what EFTPS is, how it works, who is eligible to use it, and how to enroll in and use it effectively.

What is EFTPS?

In 1996, the US Department of Treasury introduced the Electronic Federal Tax Payment System to facilitate electronic tax payments. This online payment system is a free, convenient, and easy way of paying taxes electronically. It enables individuals, businesses, and financial institutions to make online tax payments of all tax-related federal payments, including estimated tax, corporate tax, excise tax, employment tax, and more.

EFTPS

The EFTPS system accepts ACH debit taxes from a bank account, allowing taxpayers to make tax payments as per their schedule, including payments due on weekends and holidays. EFTPS is available 24/7 online, and tax payments can be made by phone or through the mobile app too.

How does EFTPS work?

EFTPS allows taxpayers to make tax payments electronically, online, or through mobile apps. To make electronic tax payments online, taxpayers are required to enroll in the EFTPS program. Once enrolled, taxpayers receive credentials to log into the system, allowing them to manage their tax payments from a secure online website. After accessing the system, taxpayers can and schedule payments according to their convenience.

In general, payments have a 24-hour cycle time. Payment requests submitted after 8 PM ET is considered submitted the next business day. Furthermore, the tax payments you make through EFTPS are tracked, and you can view your history in the system or obtain a of your transactions.

Who is eligible for EFTPS?

EFTPS is available to a wide range of entities, including individuals, businesses, tax professionals, tax preparers, financial institutions, government agencies, and more. If you have a bank account and tax due payments in the US, you are eligible to use the service.

How to enroll in EFTPS

To enroll in EFTPS, follow these steps:

1. Visit the EFTPS website at www.eftps.gov.
2. From the homepage, click on the ‘Enrollment’ option at the top-right corner of the screen.
3. ‘Businesses’ or ‘Individuals’ based on your needs.
4. Type in the relevant information, including Tax ID number, name, mailing address, and banking details.
5. Review and edit your details.
6. After providing all relevant details, confirm your enrollment request.

Once your request is accepted, you will receive your enrollment credentials within seven business days via mail. After receiving the credentials, simply log into the EFTPS website and start making your tax payments online.

Why EFTPS is an excellent option for tax payments

EFTPS is an excellent alternative for taxpayers who wish to pay their taxes online. The following reasons show why EFTPS is superior to other payment modes:

1. Security: EFTPS is installed with various security features such as password protection, two-factor authentication, and other encryption protocols to protect data breaches.

2. Convenience: EFTPS enables tax payments anywhere, anytime,; taxpayers can their date of payments, set-up recurring payments, and view transaction history on demand.

3. Lower chances of mistakes: EFTPS significantly reduces the number of human errors incurred when making physical tax payments, such as misplaced forms and incorrect account numbers.

4. Free: EFTPS does not charge users for the electronic tax payments; taxpayers only pay their taxes as applicable.

5. User-friendly: EFTPS offers a user-friendly interface with step-by-step guidance on how to use it.

📝 See Also

EFTPS and COVID-19 pandemic

The COVID-19 pandemic has brought the unprecedented need for taxpayers to pay their taxes electronically. As the virus spreads, more people are avoiding public places and offices to curb its spread. Fortunately, EFTPS empowers people to avoid in-person visits to tax offices, especially as the IRS deters face-to-face interactions.

Furthermore, with the introduction of the Coronavirus Aid, Relief, and Economic Security (CARES) Act in 2020, EFTPS has become an essential tool for taxpayers to pay their taxes. The act introduced various tax provisions, including tax credits and incentives for small businesses, and EFTPS became an instrumental tool for taxpayers to manage their payments efficiently.

Conclusion

EFTPS is a highly effective and straightforward electronic payment system for managing and paying federal taxes securely. With online payments becoming increasingly popular and the COVID-19 pandemic still making on-site transactions impractical, EFTPS provides a practical solution for taxpayers who want to avoid in-person visits to tax offices.

With an easy enrollment process, user-friendly interface, security features, convenience, and numerous other benefits, EFTPS is an excellent option for taxpayers looking for an efficient way to pay their taxes online. Enroll today and take advantage of this excellent tool to stay up-to-date with your tax obligations.

Using EFTPS to Pay Federal Taxes

The Electron Federal Tax Payment System, or the EFTPS, is free service provided by the U.S. Department of Treasury that allows individuals to pay their federal taxes electronically to the Internal Revenue Service. The service is available 24/7 and allows taxpayers to use it at their convenient.

EFTPS was first started in 1996 and since then over 9.5 million taxpayers have used the system, paying over a $22.8 trillion dollars in over a billion electron payments. EFTPS is used by both individual taxpayers and businesses. The system allows payments for their 1040ES estimated taxes to be made weekly, monthly, or even quarterly.

In order to access EFTPS a user must use a secure internet browser that has 128-bit encryption, making the service secure. In order for an individual or business to log on, they must provide a Taxpayer identification number, an EFTPS PIN, and a password. This enhances the security of EFTPS.

With EFTPS, payments can be made both in two different ways.

• Direct (ACH Debit)

o This electronic payment system allows a taxpayer to access EFTPS in order to directly report tax information. With the taxpayer’s approval, the system can move funds from one account to the Treasury’s account on an indicated date. This date can be scheduled up to120 days in advance.

• Other Financial Institutions (ACH Credit)

o This is used with certain financial institution’s accounts by business taxpayers.

Both forms of payments can be made either by using the EFTPS website or by phones.

Enrolling in EFTPS

In order to use EFTPS you must first enroll.  Doing so will require a few pieces of information:

• A taxpayer identification number

o Businesses use a Federal Employer Identification Number

o Individuals use a Social Security Number

• The Taxpayer Enrollment form requires basic information such as a name and address.

• Any EFTPS materials will be mailed to the address on record with the IRS, which should also be the address on any IRS documents or tax returns.

• While an email address is optional, it can be used by the EFTPS for immediate contact. It will not be given out to any other parties.

After supplying and verifying this information, the system will validate the information and the taxpayer will then be shown an Enrollment Confirmation page that has an Enrollment Trace Number that should be kept for personal Records. Printed confirmation materials will then be sent to the primary name and address within 15 days.

All users must accept the Privacy Act of 197 when using EFTPS online. The act requires EFTPS to explain why certain pieces of information are needed and the consequences of not receiving it. Also, under 5 U.S. Code 301 along with the Internal Revenue Code (section 6001, 6011, and 6012), EFTPS can legally ask for this information.