IRS Publication 505 — Tax Withholding and Estimated Tax

Use your 2025 tax return as a guide in figuring your 2026 estimated tax, but be sure to consider the following.

Standard deduction amount increased. For 2026, the standard deduction amount has been increased for all filers, and the amounts are as follows.

• Single or Married filing separately—$16,100.

• Married filing jointly or Qualifying surviving spouse—$32,200.

• Head of household—$24,150.

Retirement savings contribution credit income limits increased. In order to claim this credit for 2026, your MAGI must not be more than $40,250 ($80,500 if Married filing jointly; $60,375 if Head of household).

Adoption credit or exclusion. The maximum adoption credit or exclusion for employer -provided adoption benefits has increased to $17,670. In order to claim either the credit or exclusion, your MAGI must be less than $305,080. For 2026, up to $5,120 of the adoption credit is now refundable. The refundable portion is determined per child. Changes to QBID. Recent legislation made the qualified business income deduction (QBID) permanent. In addition, beginning in 2026, if you have a minimum of $1,000 in total qualified business income from an active trade or business, you may be able to claim a minimum QBID of $400. Also, the phase -in range for taxpayers who are married filing jointly will increase to $150,000 and to $75,000 for all other filing statuses.

Casualty loss deduction made permanent and expanded. The deduction for certain personal casualty losses has been made permanent. In addition, beginning in 2026, a personal casualty loss deduction can also include losses associated with a state -declared disaster. For more information, see the Instructions for Form 4684 and Pub. 547.

Deduction for educator expenses. Beginning in 2026, if you are an eligible educator with qualifying expenses, you may be able to claim a deduction for those expenses on Form 1040, Schedule 1, as well as an itemized deduction on Schedule A (Form 1040). You will take the deduction on Schedule 1 (Form 1040) and then determine the amount of any itemized deduction you can take on Schedule A. The type of expenses that qualify for each deduction is slightly different.

Mortgage insurance premiums. Beginning in 2026, the election to deduct qualified mortgage insurance premiums paid under a mortgage insurance contract issued after December 31, 2006, in connection with a home acquisition debt that was secured by a first or second home has been made permanent.

Limit on itemized deductions. For 2026, your overall itemized deductions may be reduced. If your taxable income is more than the following amounts, your itemized deductions will be reduced by 5.4% of the lesser of (1) your total itemized deductions or (2) the amount your taxable income is more than the following amounts.

• $768,700 if Married filing jointly or Qualifying surviving spouse,

• $640,600 if Head of household or Single, or

• $384,350 if Married filing separately.