Tax Season 2026 Brings Increased Deductions and Credits

New senior deduction and expanded child tax credit among notable changes

Jan. 29, 2026 at 5:15am

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Tax experts are encouraging early filing this season as the 2025 tax year sees increases in standard deductions and tax credits, including a new $6,000 senior deduction and an expanded Child Tax Credit worth up to $2,200 per child. The Earned Income Tax Credit has also been boosted, though many still fail to claim it annually.

Why it matters

These tax changes aim to provide more financial relief for low- to moderate-income families, seniors, and others, though experts warn that many still miss out on valuable credits and deductions each year. Maximizing tax benefits can make a significant difference in household budgets.

The details

The increases stem from President Trump's 'One Big Beautiful Bill,' which raised standard deductions and boosted popular credits like the Earned Income Tax Credit and Child Tax Credit. The Earned Income Tax Credit is now worth up to $8,046 for taxpayers with three or more qualifying children, while the Child Tax Credit has increased to a maximum of $2,200 per child. Other new provisions include deductions for tips, overtime pay, and car loan interest. Seniors also have a new $6,000 deduction that doesn't require itemizing.

  • Tax season for the 2025 tax year is now open.
  • The new $6,000 senior deduction takes effect for the 2025 tax year.

The players

Mark Steber

Chief tax officer at Jackson Hewitt Tax Service.

Franklin Frazier

A parent preparing to file their taxes and claim the Child Tax Credit.

Savannah Summers

A parent preparing to file their taxes and claim the Child Tax Credit.

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What they’re saying

“Those are big dollars now.”

— Mark Steber, Chief tax officer

“It's nice to have the money for sure.”

— Franklin Frazier

What’s next

Tax experts advise that if taxpayers have any questions on what they are eligible for, it's best to consult a tax professional.

The takeaway

These tax changes aim to provide more financial relief, but many still miss out on valuable credits and deductions each year. Maximizing tax benefits can make a significant difference in household budgets, so it's important for taxpayers to be aware of all the available options.