Tax year 2026, returns filed in 2027
The 2026 tax forms changed. We explain them in plain words.
New codes on the W-2, a new form called Schedule 1-A, four new deductions, and a charitable deduction that does not require itemizing. Every figure on PlainStub comes from a primary IRS source, named on the page, with the date it was last reviewed.
start with the stub in your hand, the W-2
The tools
What changed for tax year 2026
New codes on your W-2
Box 12 can now show code TP for tips, code TT for the overtime premium, and code TA for Trump Account contributions, and Box 14b carries a Treasury Tipped Occupation Code. If your pay involves tips or overtime, your January W-2 will show letters that have never appeared on it before.
Four new deductions
Tips up to $25,000, the overtime premium up to $12,500 ($25,000 on a joint return), car loan interest up to $10,000, and $6,000 for each filer aged 65 or older. All four are claimed on the new Schedule 1-A, and none of them requires itemizing.
A charitable deduction without itemizing
New for 2026: up to $1,000 of cash donations, $2,000 on a joint return, on top of the standard deduction. The catch is the calendar: the donations must be paid by December 31, 2026 to count for 2026.
Standard deduction and the SALT cap
The 2026 standard deduction is $16,100 for single filers, $32,200 for joint returns, and $24,150 for heads of household (Revenue Procedure 2025-32). For itemizers, the state and local tax cap is $40,400 for 2026, up from $10,000, with a phasedown at higher incomes.
A new statement for car loans
Lenders will send Form 1098-VLI for the first time in January 2027, showing the interest paid on qualifying new car loans. It is the statement behind the car loan interest deduction on Schedule 1-A.
The forms are still drafts
Schedule 1-A and the 2026 Form 1040 were still draft forms in early November 2026. Where a rule on this site rests on a draft form or on IRS fact sheet guidance rather than final regulations, the page says so, in those words.
How PlainStub works
Every figure starts from a primary source: the Internal Revenue Code, a Treasury regulation, an IRS revenue procedure or notice, the instructions for the relevant IRS form, or a state tax agency publication. Each page names its sources and shows the date they were last reviewed. Figures are rechecked when the IRS publishes final forms or new guidance.
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Last reviewed: November 3, 2026.