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The Internal Revenue Service (IRS) of the United States announced this week a series of key changes that will affect tax filing and refund processing starting from the 2026 tax year.
The modifications— which include adjustments to tax brackets, increases in deductions and tax credits, and a transition toward digital payments—aim to reflect the impact of inflation and move towards a more efficient and modern tax system.
The new amounts, although announced in 2025, will take effect for declarations submitted in 2027, corresponding to the fiscal year 2026. Below, we outline the key changes that will impact millions of taxpayers in the U.S.
The IRS changes the refund payment method: Goodbye to paper checks
One of the most significant operational changes was announced by the IRS in October 2025: the gradual phasing out of paper checks for individual refunds, as part of a modernization plan driven by Executive Order 14247.
What does this imply for taxpayers?
-The statements will remain the same: the submission process does not change.
-Refunds will be digital: most will be issued via direct deposit or other secure electronic methods.
Options for those without a bank account: prepaid debit cards, digital wallets, and limited exceptions.
It is recommended to act in advance: those who do not have an account should consider opening a free or low-cost one. The IRS suggests consulting resources like FDIC.gov or MyCreditUnion.gov.
This change will begin to be implemented gradually starting September 30, 2025, and will mark the start of the overall transition to electronic payments, as long as permitted by law.
Earned Income Tax Credit (EITC): More relief for families with children
The Earned Income Tax Credit (EITC) is one of the most important credits for taxpayers with low to moderate incomes. In 2026, the maximum amount of the credit will increase:
Up to $8,231 for taxpayers with three or more qualifying children (vs. $8,046 in 2025).
-Up to $7,316 for those with two children.
Up to $4,427 for those who have a child.
-Up to $664 for taxpayers without children.
This credit can result in a generous refund if the tax liability is low or nonexistent. However, to qualify:
-You must have had earned income (unemployment benefits or pensions do not count).
All declarants and dependents must have a valid Social Security number.
-Does not apply to those who use an ITIN instead of a SSN.
Child Tax Credit: Increases to $2,200
The Child Tax Credit is also being updated, albeit with restrictions. According to a law enacted in July by President Donald Trump, the child credit in 2026 will have the following characteristics:
Total amount: $2,200 for each qualifying child.
-Refundable amount: at least $1,700.
-Restrictions: children who are citizens but whose parents lack legal status are excluded.
The law stipulates that part of the credit must be refundable and dismissed a reform that would have expanded access for low-income families.
Special deduction for individuals over 65 years old
Among the most notable measures is the creation of a temporary deduction of $6,000 for taxpayers over 65 years old, which will be available between 2025 and 2028
-Available in full for those earning $75,000 or less per year ($150,000 for joint couples).
-Reduction phase: starting from incomes exceeding $75,000.
-Not available for individuals who retired before the age of 65 due to disability.
Cumulative with the standard deduction and other available deductions.
This will allow seniors to combine three types of deductions: the standard deduction, the additional deduction for age, and this new temporary deduction.
New tax brackets: adjustments for inflation
The federal tax system in the U.S. is progressive: incomes are divided into portions to which different rates are applied. In the 2026 tax year, tax brackets will be adjusted to reflect inflation and mitigate the tax burden on taxpayers.
Individual taxpayers:
10%: for the first $12,400 earned.
12%: between $12,401 and $50,400.
22%: between $50,401 and $105,700.
24%: between $105,701 and $201,775.
32%: between $201,776 and $256,225.
35%: between $256,226 and $640,600.
37%: for income exceeding $640,600.
Couples who file jointly:
10%: for the first $24,800 earned.
12%: between $24,801 and $100,800.
22%: between $100,801 and $211,400.
24%: between $211,401 and $403,550.
32%: between $403,551 and $512,450.
35%: between $512,451 and $768,700.
37%: for income exceeding $768,700.
Increases in the standard deduction
The standard deduction is a fixed amount that reduces taxable income.
It will rise moderately in 2026
-Couples filing jointly: $32,200 (compared to $31,500 in 2025).
-Family heads: $24,150 (vs. $23,625).
-Individual taxpayers: $16,100 (compared to $15,750).
These deductions aim to simplify the declaration process and reduce the tax burden on households.
A more updated system, but with clear requirements
The changes announced by the IRS for the 2026 tax year represent a significant update to the U.S. tax system.
While some adjustments aim to protect taxpayers' purchasing power against inflation—such as the new brackets and deductions—others focus on modernizing the tax process, such as the gradual elimination of paper checks.
Key credits such as the EITC or the CTC remain essential tools for the working class and families with children, although access to them is still subject to strict requirements.
Overall, the measures aim to create a more efficient, secure system adapted to the current economic reality. But as always, it will be crucial for taxpayers to stay informed in advance, review their financial situation, and prepare for the changes before filing their taxes in 2027.
Frequently Asked Questions about IRS Tax Changes
What are the most significant changes in the IRS tax return for the fiscal year 2026?
The IRS has announced significant changes that include adjustments to tax brackets, increases in deductions and tax credits, and a transition to digital payments. These changes will be implemented in the returns filed in 2027 and aim to reflect the impact of inflation and modernize the tax system.
How does the change affect electronic payments for tax refunds?
The IRS will gradually phase out the use of paper checks for refunds, favoring direct deposits and other electronic methods. This means that taxpayers should prepare by opening bank accounts or using prepaid debit cards to receive their refunds safely and quickly.
What changes have been made to the Earned Income Tax Credit (EITC)?
For the fiscal year 2026, the maximum amount of the Earned Income Tax Credit (EITC) will increase to $8,231 for taxpayers with three or more qualifying children. This credit is vital for families with low to moderate incomes, and it can result in a substantial refund if the tax liability is low or nonexistent.
What’s new with the Child Tax Credit?
In 2026, the Child Tax Credit will increase to $2,200 for each qualifying child, with at least $1,700 being refundable. However, children who are citizens with parents lacking legal status are excluded, which limits access for low-income families.
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