Important IRS Updates for 2026
2026 | 7 min read | By Tax Cash 4 Refund Team
The IRS has made several important changes for the 2026 filing season. Here is what Tax Cash 4 Refund wants you to know.
Updated Tax Brackets and Standard Deductions
For 2025 returns, the July 2025 federal tax law set the standard deduction at $15,750 for single filers and $31,500 for married filing jointly; for 2026 it rises to $16,100 and $32,200. Tax bracket thresholds have also been adjusted upward, which may lower your effective tax rate even if your income remained the same.
1099-K Threshold Changes
The July 2025 federal tax law restored the original Form 1099-K reporting threshold for payment apps and online marketplaces: more than $20,000 and more than 200 transactions in a year. Even if you do not receive a 1099-K, income from selling goods or services online is still taxable and must be reported.
Clean Vehicle Credits Ended
The federal clean vehicle credits (up to $7,500 for new EVs and up to $4,000 for used EVs) ended for vehicles acquired after September 30, 2025 under the July 2025 federal tax law. If you bought a qualifying vehicle before that date, you may still claim the credit on your 2025 return.
Free Filing Options
The IRS Direct File pilot, which Texas residents could use in earlier filing seasons, was not offered for the 2026 filing season. Check IRS.gov for current free filing options, including IRS Free File for eligible taxpayers.
Digital Asset Reporting
The IRS continues to increase enforcement around cryptocurrency and digital asset reporting. All taxpayers must answer the digital asset question on Form 1040. Failure to report crypto transactions can result in penalties.
Energy Credits for Homeowners
The federal residential solar credit (30%) and the energy-efficient home improvement credit (up to $3,200/year for heat pumps, insulation, windows and doors) were ended by the July 2025 federal tax law for expenditures and property placed in service after December 31, 2025. They may still apply to qualifying 2025 projects claimed on your 2025 return.