New tax benefits you should know before you file this year

The temps are beginning to warm up, the days are getting longer, the grass is turning green again…

All of which, of course, means…

Tax Day (scheduled for Wednesday, April 15 in 2026) is right around the corner!

Before you file or finish up with your CPA, it’s worth knowing about some notable changes in benefits that could affect your return. Below is a quick rundown of what’s new this year.

Notable new tax benefits

• An enhanced deduction for seniors (65+) — For the years 2025 through 2028, if you’re 65 or older, you can claim an extra $6,000 (single) or $12,000 (married) on top of your standard (or itemized) deduction. It starts phasing out if your income exceeds about $75,000 (single) or $150,000 (married).
• Charitable deduction “above the line” — If you don’t itemize your deductions, you can still get a tax break for giving. Individuals can deduct up to $1,000 (and couples up to $2,000) in charitable donations annually, even if you take the standard deduction.
• State and local tax (SALT) deduction cap lifted to $40,000 — The previous $10,000 cap for state/local taxes is now raised to $40,000 for people with income under $500,000. It begins to phase out above that, so higher earners may see less benefit.
• Estate tax exemption set at $15 million — Beginning in 2026, individuals can exclude up to $15 million from federal estate tax ($30 million for married couples) when planning their legacy.
• New tax credit for education scholarships — The bill provides tax credits for donations to scholarship-granting organizations—offering direct dollar-for-dollar credits for supporting private K–12 or religious education, depending on state laws.
• Expanded uses for 529 education savings plans — In addition to college tuition, 529 funds can now be used for private K–12 tuition, vocational training, certification programs, and other approved educational pathways, with higher withdrawal limits (up to $20,000 per year).
• “Trump Accounts” for children without earned income — Starting in mid-2026, parents can open new IRA-style accounts for kids even if they don’t yet earn income, and contribute up to $5,000 per year, tax-deferred. The funds can be used for education, training, or even a down payment on a home. For children born between 2025-2028, the government will deposit $1,000 at birth.
• An increase in the child tax credit — The credit for children under 17 has gone up slightly to $2,200 per child. It will also adjust with inflation going forward.
• No income tax on tips & overtime — While there are a lot of nuances and qualifications to this provision, the gist is this: From 2025 through 2028, the bill introduces new deductions that effectively remove tips and the portion of overtime pay above your base rate from your taxable income. There are also income phase-outs with these deductions as well.

For answers to some of your tax-season questions, check out our recent post: Tax season FAQ: What LifeGuide clients need to know this year.

Please note: The information provided here is not to be construed as tax advice. Please consult a qualified tax professional. If you live in a different state, consult your own state’s rules for tax deductibility. You will not receive a receipt for contributions; you must keep your own record of contributions to provide to your tax professional.