Before you do your taxes

January 16, 2026

Before you do your taxes

byMelissa Amarawardana

Tax season starts Monday, 1/26 and the deadline to file is Wednesday, 4/15. Before you start, take time to review the recommendations below - especially if your annual income is under $32,000, you make money in tips, are over 65 years old, have had a major life change in the past year, or if you qualify to file for free.

1. Make sure you have all your income documentation

From your employer: W-2 (Wage and Tax Statement)

Here's what to do if you didn't get a W-2

Forms 1099 show other types of income. The most common are:

Form 1099-K for payments from payment cards and online marketplaces
Form 1099-G for government payments such as unemployment benefits
Form 1099-INT from banks and brokers showing interest you received
Form 1099-DIV for dividends and distributions paid to you
Form 1099-NEC for freelance and independent contractor work in the gig economy
Form 1099-R for retirement plan distributions or pensions or annuities
Form SSA-1099 for Social Security benefits
Form 1099-MISC for other miscellaneous income
Form 1095-A, Health Insurance Marketplace Statement, lets you reconcile advance payments or claims
Records of digital asset transactions if you did not receive an information return for those

Documents from side jobs and self-employment

Statements from banks, payment apps, card processors or online marketplaces
Checks paid to you
Receipts and mileage logs for travel, gift and car expenses
Records of deductible office expenses
Estimated tax payments
Other business income and expense records

Documents for credits or deductions

Childcare or dependent care expenses
Home mortgage and property tax records (if you itemize your deductions)
Donations to charity (if you itemize your deductions)
Health savings account or flexible spending account contributions
Healthcare expenses (if you itemize, special rules apply)
Retirement contributions
If you're a student or teacher, receipts for books, tuition and other education expenses

2. If you have had any other the following major events in 2025

Use the Tax Withholding Estimator to check and make sure you’re paying the right amount of tax from each paycheck. Major life events may include:

Job change, job loss, or a new career
Birth or adoption of a child
Divorce or separation
If you have moved
First-time home buyer
Disabilities
Planning for retirement

3. Look up new credits and deductions

Standard deduction increases

Tax year 2025 (current filing year)

$31,500 for married couples filing jointly
$15,750 for single filers and married individuals filing separately
$23,625 for heads of household

Tax year 2026 (filed in 2027)

$32,200 for married couples filing jointly
$16,100 for single filers and married individuals filing separately
$24,150 for heads of household

Marginal rates for tax year 2026

10% for income up to $12,400 (single) or $24,800 (married filing jointly)
12% for income over $12,400 (single) or $24,800 (married filing jointly)
22% for income over $50,400 (single) or $100,800 (married filing jointly)
24% for income over $105,700 (single) or $211,400 (married filing jointly)
32% for income over $201,775 (single) or $403,550 (married filing jointly)
35% for income over $256,225 (single) or $512,450 (married filing jointly)
37% for income over $640,600 (single) or $768,700 (married filing jointly)

Employer-provided childcare credit expansion for tax year 2026

Maximum amount increases from $150,000 to $500,000
Maximum increase to $600,000 if employer is an eligible small business

New deductions for seniors 65+

Effective 2025 through 2028, individuals age 65 and older may claim an additional $6,000 deduction.
This is in addition to the standard deduction for seniors available under existing law.
Applies per eligible individual (or $12,000 for a married couple if both spouses qualify).
Phases out for taxpayers with modified adjusted gross income over $75,000 ($150,000 for joint filers).

No tax on tips

Effective 2025 through 2028, employees and self-employed individuals may deduct qualified tips they received in occupations the IRS identified as “customarily and regularly receiving tips” on or before December 31, 2024, and are reported on a Form W-2, Form 1099, another statement furnished to the individual, or on Form 4137 if the individual directly reports the tips.
“Qualified tips” include voluntary cash or charged tips received from customers, including shared tips.
Maximum annual deduction is $25,000.
For self-employed individuals, deduction cannot exceed net income (before this deduction) from the trade or business where tips were earned.
Phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers).

You qualify if you:

Have a Social Security number (SSN)
Claim itemized or non-itemized deductions

You do not qualify if you are:

Self-employed in a Specified Service Trade or Business (SSTB) under Section 199A
Employees of an employer in an SSTB

No tax on overtime

Effective 2025 through 2028, individuals may deduct the portion of qualified overtime pay that exceeds their regular rate of pay (for example, the “half” portion of “time-and-a-half”).
Overtime must be reported on Form W-2, Form 1099, another statement furnished to the individual, or directly by the individual.
Maximum annual deduction is $12,500 ($25,000 for joint filers).
Phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers).

You qualify if you:

Have a Social Security number (SSN)
Claim itemized or non-itemized deductions

No tax on car loan interest

Effective 2025 through 2028, individuals may deduct interest paid on a loan used to purchase a qualified vehicle for personal use that meets other eligibility criteria. Lease payments do not qualify.
Maximum annual deduction is $10,000.
Phases out for taxpayers with modified adjusted gross income over $100,000 ($200,000 for joint filers).

Click here for more information: https://www.irs.gov/newsroom/one-big-beautiful-bill-provisions

If you have student loans:

If you have federal student loans in default, the government can take your tax refund to pay the debt. Before filing your taxes, call the Treasury Offset Program at 800-304-3107 to find out if you're on the list to have your refund seized. If you’re on the list, there are steps you can take to get your loans out of default and protect your refund.

For more information on how to protect your tax refund, scan the QR code or visit studentloanborrowerassistance.org/tax-refund.

4. Check if you can file for free

If your adjusted gross income (AGI) is $89,000 or less, you can file federal taxes for free. There are

You choose from IRS partner tax software companies
Simple questions to guide you
Accurate math calculations guaranteed
Spanish tax preparation and filing available

If your AGI is $51,000 or less OR you are active duty military and your AGI is $89,000 or less, you can use either of these two options to file BOTH your federal and Nebraska state taxes:

Click here to access information on Volunteer Income Tax Assistance (VITA) sites and other free tax preparation resources from the FDIC.

Check your credit with a free credit report

You have the right to request a free credit report from each of the nationwide consumer credit reporting companies: Equifax, Experian, and TransUnion. You can request these reports online at Annualcreditreport.com.

Be cautious about tax scams, fraud, and identity theft

An email, call, or message could be a scam if it: