Tax Changes Impacting 2026 Refunds
Adjustments to the SALT deduction cap, new rules for reporting tips/overtime, and shifts in income taxation could affect 2026 tax refunds [https://gobankingrates.com/taxes/refunds/tax-changes-taking-effect-2026-what-they-mean-for-your-refund].
The Tax Cuts and Jobs Act (TCJA) of 2017 put a $10,000 limit on the amount of state and local taxes (SALT) that households can deduct, and this cap is still in effect. Some states are trying to work around the cap through tax credits or other means, but the IRS has been pushing back on some of these approaches. New IRS rules could change how tips and overtime pay are reported, potentially affecting income tax calculations. It's not yet clear how these changes will impact individual refunds, but taxpayers should be aware of the new requirements. Potential changes to income tax brackets could also impact refunds in 2026. Depending on income levels and tax law adjustments, some individuals might see their refunds increase or decrease.
