Important IRS Updates for 2026
2026 | 7 min read | By My Tax Service Team
The IRS has made several important changes for the 2026 filing season. Here is what My Tax Service wants you to know.
Updated Tax Brackets and Standard Deductions
Inflation adjustments have increased the standard deduction to $15,000 for single filers and $30,000 for married filing jointly. Tax bracket thresholds have also been adjusted upward, which may lower your effective tax rate even if your income remained the same.
1099-K Threshold Changes
The IRS has continued phasing in the lower 1099-K reporting threshold. Payment platforms like Venmo, PayPal, and Cash App must now report transactions exceeding $2,500 (down from previous thresholds). If you sell goods or services online, be prepared to receive this form and report the income.
Clean Vehicle Credits Updated
The clean vehicle tax credit (up to $7,500 for new EVs) has updated qualifying vehicle lists and income limits. Used EV credits (up to $4,000) are also available with income restrictions.
IRS Direct File Expansion
The IRS has expanded its Direct File program to more states. While Texas was already included, the program now supports more complex return types including self-employment income and itemized deductions.
Digital Asset Reporting
The IRS continues to increase enforcement around cryptocurrency and digital asset reporting. All taxpayers must answer the digital asset question on Form 1040. Failure to report crypto transactions can result in penalties.
Energy Credits for Homeowners
Texas homeowners can claim credits for energy-efficient improvements including solar panels (30% credit), heat pumps, insulation, and energy-efficient windows and doors (up to $3,200/year).