It is finally here. The 2026 tax filing season is officially kicking off, and honestly, it’s nothing like the ones we’ve seen over the last decade. For years, the headlines were dominated by the legal brawl over Donald Trump’s personal tax returns—the subpoenas, the Supreme Court cases, and those leaked documents from the New York Times.
But things have shifted.
Now, the "news on Trump's taxes" isn't just about what he paid in 2016. It's about a massive new law he signed during his second term called the One Big Beautiful Bill Act (OBBBA). This thing is sprawling. It has completely rewired how you and I are going to file our returns this April.
We are talking about the biggest shakeup to the tax code since, well, the first Trump tax cuts in 2017. If you’re expecting a typical refund, you might be in for a shock. The IRS—now led by Acting Commissioner Scott Bessent—is predicting "record-breaking" refunds. Some experts at the Tax Foundation think the average refund could jump by as much as $1,000 for millions of families.
The Massive Shift in Trump’s Tax Policy
Most people are still stuck on the old news. They're thinking about the $500 million civil fraud penalty in New York. You've probably heard that an appeals court actually tossed that fine out in late 2025, calling it "excessive," even though they kept the fraud finding itself. That was a huge moment for his personal finances.
But for the rest of us? The real news is the OBBBA.
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Basically, this law made the 2017 tax cuts permanent and then added a bunch of new stuff on top. For the 2025 tax year (the one you are filing for right now in 2026), the standard deduction has ballooned. If you're married and filing jointly, that deduction is now a whopping $32,200.
That is a lot of money you don't have to pay taxes on. Because the IRS didn’t update the "withholding tables" right away after the law passed, most workers have been overpaying their taxes all year. That’s why the government is sitting on about $100 billion to $150 billion in extra cash that they have to give back to us this spring.
What’s New for Your 2026 Return?
It’s not just the standard deduction. There are these weird, specific credits that honestly feel a bit like a throwback.
- No Tax on Tips and Overtime: This was a huge campaign promise, and it’s actually in the law. If you work a job with tips or you’ve been grinding out overtime hours, you need to look for the new Schedule 1-A. It’s the form used to exclude that income.
- The "Trump Accounts": This is a new type of savings account for kids. The government is even putting $1,000 into accounts for babies born after 2024. You can start contributing to these on July 4, 2026.
- Car Loan Interest: For the first time in forever, you can actually deduct the interest on your car loan—but only if the car was assembled in the U.S. and you bought it after 2024.
- SALT Cap Relief: The "State and Local Tax" deduction cap, which was a huge pain for people in places like New York and California, has been bumped from $10,000 to **$40,000**.
The Legal Side: Is the Fight Over?
Not quite. While the New York fraud penalty was slashed, the "news on Trump's taxes" still involves the Supreme Court. Right now, there is a big fight over tariffs.
Wait, why tariffs?
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Because the administration is arguing that tariffs are basically a "replacement" for income tax revenue. There are two companies right now—Learning Resources and hand2mind—taking this all the way to the high court. They're arguing that these tariffs are an illegal tax. If the Supreme Court sides with them, it could blow a massive hole in the federal budget that the OBBBA relies on.
Then you have the IRS itself. It’s undergoing a total transformation. They’re moving toward a CEO-style leadership model under Frank Bisignano. The goal is "customer service," which sounds great on paper, but they are also rolling out Form 1099-DA for the first time. If you traded crypto or used a digital wallet in 2025, the IRS is going to know about it. Every single cent.
The Reality Check
Look, there's always a catch. While the refunds are expected to be huge, the OBBBA also killed off a lot of the "green" tax credits. If you were planning on getting a big break for putting solar panels on your house or buying an EV, those credits effectively died at the end of 2025.
Also, for the high earners, the "Alternative Minimum Tax" (AMT) is still a thing. The exemption is higher ($90,100 for individuals), but it hasn't gone away.
How to Handle Your Taxes This Year
So, what do you actually do with all this?
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First, stop waiting. The IRS officially starts processing returns on January 26, 2026. If you want that "record-breaking" refund early, you need to file as soon as that window opens.
Second, get your paystubs in order. If you're trying to claim the "no tax on overtime" benefit, you can't just guess the number. You need the specific breakdown from your employer. The IRS is going to be incredibly picky about that this year because it's a new provision.
Actionable Steps for Your 2026 Filing:
- Check your car's "Birthplace": Look at your VIN or purchase agreement. If that SUV was made in a U.S. plant, find your 1098-VLI form from the lender to deduct that interest.
- Download your Crypto History: Don't wait for the 1099-DA to show up in the mail. Most exchanges are already generating these reports.
- Seniors, Take the Extra Bit: If you are 65 or older, there is a new $6,000 additional deduction on top of the standard one. Don't leave that on the table.
- Maximize the SALT: If you live in a high-tax state, 2026 is the first year since 2017 where itemizing might actually make sense again because of that $40,000 cap.
The era of "Trump's taxes" being just about one man's private audit is over. It’s now the name of the system we’re all living in. Whether you love the policies or hate the politics, the math for your bank account has changed.
Make sure you've got your records for tips and overtime separated from your base pay before you sit down with your CPA or open your tax software. If you're expecting that $1,000+ refund boost, having the right documentation for the new Schedule 1-A is the only way to ensure it doesn't get hung up in an automated IRS review.