IRS Publication 505 — Tax Withholding and Estimated Tax

The limitation will be applied after any other applicable limitations on your itemized deductions and will not apply when figuring any QBID. Moving expense deduction for members of the intelligence community. Beginning in 2026, in addition to members of the Armed Forces, members of the intelligence community may be able to deduct their moving expenses on Schedule 1 (Form 1040). For more information, see the instructions for Schedule 1 (Form 1040).

Limitation on deductible gambling losses.

Beginning in 2026, your gambling loss deduction on Schedule A (Form 1040) will be limited to lesser of (1) 90% of your gambling losses or (2) your gambling winnings.

Changes to the child and dependent care credit. For 2026, recent legislation has enhanced the credit for qualifying child and dependent care expenses paid for the care of an eligible child. The credit amount remains $3,000 ($6,000 for two or more qualifying children) but the maximum credit rate has increased from 35% to 50% of your qualifying expenses.

Charitable contribution deduction for non-itemizers. Beginning in 2026, you can claim a deduction for cash contributions made to eligible tax -exempt organizations. You don’t have to itemize to take the deduction. The maximum deduction is $1,000 ($2,000 for married filing jointly) with certain other limitations. Charitable contribution deduction floor for itemized deductions. Beginning in 2026, if you itemize, you can only deduct charitable contributions that are more than 0.5% of your adjusted gross income. Any amount that falls under the 0.5% floor can’t be deducted in 2026. This limitation is in addition to the overall limit on itemized deductions.

Expiration of credits. The following credits have expired and you can no longer claim them on your return in 2026.

• Credit for energy efficient home improvements.

• Credit for residential clean energy systems. The credit for alternative refueling property expires in 2026 for property acquired and placed in service after June 30, 2026.

SSN required for education credits. Beginning in 2026, a valid social security number issued before the due date of the return (including extensions) is required in order to be eligible to claim the American Opportunity Credit and Lifetime Learning Credit. If you are claiming the American Opportunity Credit, you must include the EIN of the institution to which you paid qualified tuition and related expenses on Form 8863. Changes to the premium tax credit. Beginning in 2026, the following changes apply to the premium tax credit.

• If your household income is more than 400% of the federal poverty line, you are no longer eligible for the premium tax credit.

• There is no longer a limit on the amount you will have to pay back if you received too much in advanced credit; this is true even if your household income is less than 400% of the federal poverty line.