The 2026 Tax Rules Have Changed. Is Your Strategy Ready?

Get it Right, Get it Faster—Download Your 2026 Tax Master Checklist.

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Get it Right, Get it Faster—Download Your 2026 Tax Master Checklist. 〰️

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Navigate the 2026 Tax Shifts with Confidence.

From OBBBA adjustments to expanded SALT limits, McCain & Associates makes sense of the new laws so you don't have to. Expert tax preparation in Hyattsville, MD, backed by 20 years of experience.

  • Higher standard deductions, revised State and Local Tax (SALT)limits, expanded retirement contribution caps and updated child-related credits will all factor into your taxes beginning this year. This makes January a good time to review your current situation and strategy, and start planning ahead. 

    You should note that the amounts listed below may change again when the IRS releases final 2026 inflation adjustments, or tax provisions change due to IRS implementation and clarification.

  • Federal income tax brackets for tax year 2026 (which will be filed in 2027) still use the same brackets ranging from 10% to 37%  as in 2025, but the income ranges will shift slightly due to inflation adjustments. The lowest bracket applies to single filers earning up to $12,400 and married couples earning up to $24,800. The top 37% rate applies to incomes above $640,600 for single filers and $768,700 for joint filers.

  • The standard deduction (already increased in 2025 under the OBBBA) is set to increase in 2026 to $32,200 for married couples and $16,100 for single filers and married individuals filing separately. For heads of household, the deduction will increase to $24,150. 

  • In 2025, the SALT deduction cap increased from $10,000 to $40,000. The limit will rise by 1% each year through 2029, then revert back to $10,000 in 2030. The expanded deduction applies only to households with a modified adjusted gross income (MAGI) of $500,000 or less ($250,000 for those married filing separately)4. The expanded cap phases down above the MAGI threshold and is further limited at higher income levels.

  • For 2026, the Child Tax Credit provides up to $2,200 per qualifying child under age 17. Up to $1,700 of that amount can be refundable through the Additional Child Tax Credit (ACTC) for eligible families, generally based on 15% of earned income above $2,500 (with earned income of at least $2,500 needed to qualify).

  • Several temporary tax benefits took effect in 2025 that directly affect workers in tipped industries, employees earning overtime and individuals financing new vehicles. For example, the new No Tax on Tips Act allows workers in tipped occupations to deduct up to $25,000 in cash tips from taxable income each year from 2025 through 2028, depending on rules and eligibility. It also permits deductions of up to $12,500 in qualifying overtime pay for single filers or $25,000 for joint filers, generally limited to the overtime premium portion of earnings rather than base wages.

For more information on the changes to be aware of for 2026, including phase-out limits and other qualifications, read the full article.   

If you need help reviewing your finances before year-end, a financial advisor can work with you to evaluate tax changes and strategies, and set financial goals for 2026. SmartAsset’s 3-minute2 tool can connect you with fiduciary advisors that you can interview for free.  

Don't Just Spend Your Refund. Grow It.

Cover Immediate Needs and High-Interest Debt

Before investing, it’s often a good idea to cover essential expenses. You could use your tax refund to pay rent, utilities or other pressing bills, or prioritize high-interest credit card debt. If your emergency fund is low, rebuilding those reserves can help provide a financial cushion in the event of job loss or unexpected expenses.

Add to Your Retirement Savings

If your financial basics are covered, directing your refund toward retirement could help further strengthen your long-term outlook. You can contribute to a Roth or traditional IRA. For 2026, both have a $7,500 limit for those under age 50. If you’re 50 or older, you’ll be able to contribute up to $8,600. Roth IRA withdrawals are tax-free in retirement, while traditional IRA contributions may be tax-deductible. 

And while you can’t deposit a refund directly into a 401(k), you can increase your payroll contribution and use the refund to supplement your take-home pay. The catch-up contribution limit for employees aged 50 and over who participate in most 401(k), 403(b), governmental 457 plans, and the federal government’s Thrift Savings Plan is increased to $8,000 for 2026, up from $7,500 for 20256.

Invest in Stocks or Bonds

Putting your refund into a taxable brokerage account can help give you flexibility to invest in stocks, index funds or ETFs. While stocks fluctuate in the short term, they have historically tended to outperform other assets over long horizons. If you prefer lower risk, you might choose government or corporate bonds or bond index funds. Putting your refund into a taxable brokerage account can help give you flexibility to invest in stocks, index funds or ETFs. While stocks fluctuate in the short term, they have historically tended to outperform other assets over long horizons. If you prefer lower risk, you might choose government or corporate bonds or bond index funds.

FAQ

Have a specific question? We’re happy to help! Contact us directly and we’ll get back to you promptly.

  • For individual returns, you'll typically need W-2s, 1099s, mortgage interest statements (1098), investment statements, receipts for deductible expenses, and last year's tax return. For businesses, you'll also need financial statements, payroll records, and business expense documentation. We'll provide a detailed checklist during your consultation.

  • We serve a wide range of business structures including S-Corporations, C-Corporations, partnerships, sole proprietorships, and non-profit organizations. No matter your business type, we have the expertise to handle your tax preparation and ensure compliance.

  • Yes! While we're based in Hyattsville, MD, we're qualified to prepare tax returns for all states that require them. We regularly serve clients throughout the D.C. metropolitan area and beyond, handling multi-state filing situations with ease.

  • Turnaround time depends on the complexity of your return and how quickly we receive all necessary documents. Simple individual returns can often be completed within a few days. More complex business returns may take 1-2 weeks. We'll give you a timeline during your initial consultation.

  • Absolutely! Unlike many tax preparers who only work during tax season, we provide responsive, year-round communication. Whether you have questions about estimated payments, tax planning, or life changes that affect your taxes, we're here to help whenever you need us.

  • Our fees are based on the complexity of your return and the services required. We provide transparent pricing upfront during your consultation—no hidden fees or surprises. We believe in fair pricing for quality, personalized service.

Have Additional Questions? Call Us Now!

Get it Right, Get it Faster—Download Your 2026 Tax Master Checklist.

Don't miss out on the new OBBB exclusions for overtime and tips. Ensure your return is audit-proof with our expert-approved prep guide.

Take the Stress Out of Tax Season

Navigating the 2026 tax landscape—including the new OBBB exclusions and Maryland e-filing requirements—requires more than just software; it requires a partner who protects your future. Whether you have questions about documenting dependent residency or want to ensure you claim the new Senior Deduction, McCain & Associates is here to help you get it right and get it faster.

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