Tax Law Changes for 2026
Federal changes
Charitable Deductions
Starting in 2026 there is a charitable deduction of $1,000 for single ($2,000 for MFJ) even if you claim the standard deduction. The contributions must be monetary donations. It cannot be donated goods.
Energy Credit
All current energy credits ended as of 12/31/25.
Gambling Losses Limited
Your deduction for gambling losses is limited to 90% of your actual losses (limited to 90% of your winnings). You need to be able to itemize to claim any of your losses against your gambling winnings. This means even if you lose money, you could still owe taxes on your winnings.
529 College Savings Plans
Certain K-12 expenses have been added to this list of qualifying expenses for distributions from a 529 plan. This includes tuition, fees, books, and tutoring.
Health Savings Account
Bronze and catastrophic health insurance plans, as well as certain direct primary care service arrangements now qualify for HSA contribution purposes. If you have one of those plans, you can contribute to and HSA and get a tax deduction.
Pennsylvania changes
Student Loan Interest Deduction
Pennsylvania now allows a deduction for student loan interest that mirrors the federal deduction.
Working Pennsylvanians Tax Credit
If you qualify for the Earned Income Tax Credit on your Federal tax return, you can now claim 10% of that credit on the Pennsylvania tax return.
Proudly powered by WordPress