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Federal Tax Changes That Can

Affect Refunds and Liability

1. Bigger Standard Deductions
Standard deductions have increased for most taxpayers in 2026 — meaning many people can reduce their taxable income more than before. For example, the standard deduction for married couples filing jointly rose to $32,200 and to $16,100 for single filers.

2. Expanded and New Tax Credits & Deductions
The law added or expanded several tax breaks that can increase refunds:

• A new charitable deduction for non-itemizers (up to $1,000 for individuals, $2,000 for joint filers).

• Increased earned income tax credit amounts and adjusted limits to help low- and middle-income families.

• Enhanced adoption tax credit limits.
  These updates create planning opportunities many filers miss without help.

3. New “Senior Deduction”
Taxpayers age 65+ may now claim an additional deduction of up to $6,000, potentially lowering taxable income significantly.

4. Tax Bracket Adjustments for Inflation
Income thresholds for federal tax brackets have been bumped up, which can lower the effective tax rate and increase take-home pay.

5. State and Local Differences
Federal changes don’t always flow through to state taxes; some states still require “add-backs” for federal deductions like tips and overtime.