Tax laws are changing for 2026, which could impact how individuals and families file their returns. From updated charitable deductions to shifts in itemized deductions, gambling losses, and energy-related credits, these changes may affect both your tax strategy and your bottom line.
Understanding what’s ahead gives you time to plan—not react. Below is a breakdown of key tax changes coming in 2026 and what they could mean for you as you prepare for future filing seasons.
- Above-the-line charitable deduction limit returns
Starting in 2026, taxpayers can deduct up to $1,000 (single) or $2,000 (married filing jointly) in charitable contributions even without itemizing. For those who do itemize, a new 0.5% charitable contribution floor will apply.
- Itemized deduction phaseouts return
High-income earners in the 37% tax bracket may see their itemized deductions reduced due to the reinstated phaseout rules.
- New limits on gambling losses
Beginning in 2026, wagering losses can only be deducted up to 90% of total losses. For example, someone with $10,000 in winnings and $15,000 in losses could previously deduct all $10,000 of their winnings — but under the new rule, only $9,000 would be deductible.
- Mortgage insurance premiums become deductible again
These premiums will once again qualify as an itemized deduction starting in 2026.
- Many energy credits have ended
Several energy-related tax incentives have expired:
- Credits for electric vehicle purchases ended after September 30, 2025.
- Numerous credits for residential energy-efficient improvements expired at the close of 2025.
The best way to approach tax season is with clarity and preparation. By organizing your records now, understanding which documents to expect, and staying informed about the changes coming in 2026, you’ll be better positioned to file accurately and avoid surprises. Whether you’re focused on this year’s return or planning for the future, taking a few simple steps today can make tax time much easier tomorrow. If you need expert guidance or want help navigating any of these upcoming tax changes, NSO and Company is here to support you every step of the way. Contact our team today at (317)-588-3131 to schedule a consultation and ensure you’re fully prepared for the year ahead.
