{"id":26647,"date":"2026-04-20T15:38:34","date_gmt":"2026-04-20T15:38:34","guid":{"rendered":"https:\/\/didebta.com\/?p=26647"},"modified":"2026-04-20T15:38:36","modified_gmt":"2026-04-20T15:38:36","slug":"tax-season-2026-what-you-need-to-know","status":"publish","type":"post","link":"https:\/\/didebta.com\/?p=26647","title":{"rendered":"Tax Season 2026: What You Need to Know"},"content":{"rendered":"
\n

6. Child Tax Credit (CTC)<\/h3>\n

Got kids? Well, here\u2019s a tax credit\u00a0just for you<\/em>!\u00a0<\/em>The\u00a0child tax credit\u00a0lets you credit up to $2,200 per dependent child under the age of 17. The income limit is $400,000 for married filing jointly and $200,000 for all the other filing statuses. <\/sup>The CTC is also partially refundable up to $1,700.17<\/sup>\n <\/p>\n

7. Child and Dependent Care Credit<\/h3>\n

This is\u00a0another<\/em>\u00a0great credit parents and guardians should know about. The\u00a0child and dependent care credit\u00a0is a nonrefundable credit that allows taxpayers to offset some of the costs for care provided while you\u2019re working, things like child care facilities and in-home caregivers for older dependents.\n <\/p>\n

Here\u2019s how it works: You can claim 20\u201335% of up to $3,000 ($6,000 for two or more dependents) for the cost of care. The percentage of the credit depends on your AGI. Families with an AGI of $15,000 or less can claim the full 35%. As you earn more income, the credit is reduced. But a family with an AGI of over $43,000 can still claim the minimum credit rate of 20%.18<\/sup>\n <\/p>\n

Let\u2019s break it down. You pay $250 a week for Junior to go to day care. That\u2019s about $13,000 a year (ouch). If you qualify to credit 20% of $3,000 in care costs, you get $600 knocked off your tax bill. Not too shabby!\n <\/p>\n

8. Education Credits<\/h3>\n

Bettering yourself or your children through education is a good thing, and it\u2019s even better when you get a tax break.\n <\/p>\n

The American opportunity tax credit (AOTC) is a partially refundable credit that pays for education expenses for students during their first four years of college. You can claim up to $2,500 per student\u2014and if the credit brings your tax bill to zero, you could receive up to $1,000 (that\u2019s 40% of the credit) as a refund.19<\/sup>\n <\/p>\n

Another education credit is the lifetime learning credit (LLC). This one isn\u2019t refundable, but it covers up to $2,000 in qualified educational expenses per return.20<\/sup>\u00a0While you can only take advantage of the AOTC for undergrad expenses, you can reap the benefits of the LLC for expenses related to all kinds of educational opportunities\u2014from degree programs to technical classes to courses for improving job skills.\n <\/p>\n

But beware: You can claim both the AOTC and the LLC on your tax return\u2014but not for the same student or the same expenses.21<\/sup>\u00a0And both credits have income limits: You cannot claim either credit if your modified adjusted gross income (MAGI) is more than $90,000 ($180,000 for those who are married filing jointly).22<\/sup>\n <\/p>\n

In addition to these credits, you could be eligible for a tax deduction (up to $2,500) for interest you\u2019ve paid on\u00a0student loans. Now, the student loan interest deduction is definitely\u00a0not\u00a0<\/em>a reason to keep student loans around if you currently have them since the deduction is basically a small refund of what you\u2019ve already paid\u2014it\u2019s not free money.\n <\/p>\n

So you should still pay off your student loans as soon as possible. But if you do still have student loans and you\u2019re working hard to\u00a0pay them off, this deduction could be a nice bonus.\n <\/p>\n

9. Adoption Credit\u00a0<\/h3>\n

If you adopt a child, there’s a good chance you’ll be able to claim the adoption tax credit for qualified adoption expenses (up to $17,280 per qualifying child for 2025). The credit, which applies to international, domestic, private or public foster care adoptions, also becomes partially refundable<\/em> (up to $5,000) for the 2025 tax year as well.23<\/sup>\n <\/p>\n

How the One Big Beautiful Bill Impacts Your 2025 Taxes<\/h2>\n

The OBBBA covers a lot <\/em>of ground when it comes to taxes. For now, let\u2019s go over some of the major headlines that might impact your tax bill (for better or worse) when you sit down to file your return this spring.\n <\/p>\n

1. No taxes on tips or overtime pay (for the most part).<\/h3>\n

If you\u2019re a tipped worker, you can deduct up to $25,000 of tips from your income\u2014which means you\u2019ll be able to keep more money in your pocket this year. The deduction starts to phase out for anyone making more than $150,000 per year ($300,000 for couples).24<\/sup>\n <\/p>\n

For overtime workers, the new law adds a tax deduction of up to $12,500 ($25,000 for couples) for overtime wages from 2025 through 2028. And just like with tipped workers, the deduction phases out for those making more than $150,000 per year.25<\/sup>\n <\/p>\n

There\u2019s a big <\/em>caveat here: This tax cut for overtime pay is mostly available to hourly\u2014not salaried\u2014workers.\n <\/p>\n

2. Seniors get a new tax deduction.<\/h3>\n

The OBBBA gives seniors (ages 65 and older) a temporary tax deduction of $6,000, and it\u2019s available whether you take the standard deduction or itemize.\n <\/p>\n

The deduction begins to phase out for seniors who earn more than $75,000 a year ($150,000 for couples), so you\u2019ll have to settle for a reduced deduction if you\u2019re above that income threshold. This deduction is available from 2025 through 2028, so enjoy it while you can.26<\/sup>\n <\/p>\n

3. The SALT deduction gets a huge bump.<\/h3>\n

If you live in a state with high state and local taxes (we see you, California and New York), you\u2019re probably over the moon about the beefed-up\u00a0state and local tax (SALT) deduction. The new law raises the cap on the amount of state and local taxes (which also includes property taxes) you can write off your tax return to $40,000 (up from $10,000).\n <\/p>\n

However, if you make more than $500,000 per year, you\u2019ll get a reduced deduction. And the deduction drops back down to $10,000 if your income is $600,000 or more.\u00a0This is also a temporary deduction, with the cap set to return to the $10,000 mark starting in 2030.27<\/sup>\n <\/p>\n

4. This is your last chance to enjoy tax breaks for clean energy home improvements and electric vehicles.<\/h3>\n

The bill ends tax credits for rooftop solar, geothermal heat pumps and other energy-efficient home devices at the end of 2025. The bill\u00a0also axed the $7,500 tax credit\u00a0that reduced the cost of electric vehicles\u2014that one expired on September 30, 2025.28<\/sup>\n <\/p>\n

File Your Taxes With Confidence in 2026<\/h2>\n

Win with taxes (and avoid costly mistakes) when you do your taxes the Ramsey way. Ramsey SmartTax is the no-nonsense tax software you can trust. It\u2019s simple to use with no hidden fees and no hidden agenda. It\u2019ll even teach you along the way so you\u2019ll feel empowered to do your own taxes with confidence.\n <\/p>\n

And unlike the folks at the IRS, our product specialists will answer your calls\u00a0and\u00a0<\/em>serve you with excellence if you need any help along the way. You definitely won\u2019t get that with IRS Free File!\n <\/p>\n

File your taxes with Ramsey SmartTax!\n <\/p>\n

But what if you have a more complicated tax situation or had a wild year in 2025? In that case,\u00a0working with a tax pro\u00a0is a smart move. And if you\u2019re looking for a trustworthy tax professional who serves your area, try one of our RamseyTrusted\u00ae<\/sup> tax pros. They know the tax code inside and out so you don\u2019t have to.\n <\/p>\n

Find a tax pro who serves your area today.\n <\/p>\n

\u00a0\n <\/p>\n<\/p>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

6. Child Tax Credit (CTC) Got kids? Well, here\u2019s a tax credit\u00a0just for you!\u00a0The\u00a0child tax credit\u00a0lets you credit up to $2,200 per dependent child under the age of 17. The income limit is $400,000 for married filing jointly and $200,000 for all the other filing statuses. The CTC is also partially refundable up to $1,700.17<\/p>\n","protected":false},"author":1,"featured_media":26648,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[55],"tags":[],"class_list":{"0":"post-26647","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-news"},"yoast_head":"\nTax Season 2026: What You Need to Know | Didebta<\/title>\n<meta name=\"description\" content=\"6. Child Tax Credit (CTC) Got kids? 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