Recent changes that affect your federal return, explained in plain language. Every update links to the official IRS or Treasury source it comes from.
Last reviewed October 1, 2026
Most of these changes come from the federal tax law enacted in 2025 and apply to the returns filed in 2026.
After the 2025 federal tax law, the 2025 standard deduction is $15,750 for single filers and married filing separately, $31,500 for married filing jointly and qualifying surviving spouses, and $23,625 for head of household.
Source: IRS — Tax law changes for 2025Do I need to file a U.S. tax return? →
The maximum Child Tax Credit for 2025 is $2,200 per qualifying child under 17, with up to $1,700 refundable. You (or your spouse, if married filing jointly) and each qualifying child must have a Social Security number valid for employment, issued before the return’s due date (including extensions).
Source: IRS — Child Tax CreditChild Tax Credit: who qualifies and how to claim it →
If you itemize, you can deduct up to $40,000 ($20,000 if married filing separately) of state and local taxes for 2025. The limit is reduced if your modified adjusted gross income is over $500,000 ($250,000 if married filing separately).
Source: IRS — Tax law changes for 2025First-time filer: standard vs. itemized deductions →
Payment apps and online marketplaces must file Form 1099-K only when a payee’s gross payments exceed $20,000 and there are more than 200 transactions. The 2025 law reinstated this threshold retroactively. Payment card transactions have no minimum. All income is taxable even if you don’t receive a Form 1099-K.
Source: IRS — IR-2025-107 · IRS — Form 1099-K FAQsAirbnb host tax guide →
The maximum 2025 EITC is $649 with no qualifying children, $4,328 with one, $7,152 with two, and $8,046 with three or more.
California’s Earned Income Tax Credit is worth up to $3,756 for tax year 2025 for working families and individuals earning up to $32,900. Claim it on the 2025 FTB 3514 with your California return.
Source: California FTB — CalEITC
In a report to Congress, the Treasury Department stated that the IRS will suspend the Direct File program and focus on free filing through programs such as IRS Free File. For 2025 returns, IRS Free File offers guided tax software at no cost to taxpayers with adjusted gross income of $89,000 or less.
Source: Treasury — Report on the Replacement of Direct File · IRS — Tax Tip 2026-08 (Free File)First-time filer: how to file →
For tax years beginning after 2025, the minimum threshold for reporting certain payments on Forms 1099-NEC and 1099-MISC increased to $2,000. It may be adjusted for inflation beginning in 2027.
Source: IRS — Instructions for Forms 1099-MISC and 1099-NECW-2 vs 1099: what’s the difference →
The standard mileage rate for business use is 72.5 cents per mile from January 1 to June 30, 2026, and 76 cents per mile from July 1 to December 31, 2026.
Source: IRS — Standard mileage ratesWhat can I deduct as a small business owner? →
As of October 18, 2026. If a deadline falls on a weekend or legal holiday, it moves to the next business day.
AskLinTax updates are written for general education and are not tax, legal, or financial advice for your specific situation. Always confirm current rules with the official source or a qualified tax professional.