Tax Law
Effective: 2026-01-01
IRS Federal Tax Adjustments: Standard Deductions & 1099-K Threshold Implementation
IRS announces statutory inflation adjustments for federal income tax brackets, standard deduction amounts, and phased implementation of third-party network transaction reporting (Form 1099-K).
Key Administrative Changes
- Standard Deduction for Married Filing Jointly adjusted to $30,000; Single filers $15,000.
- Form 1099-K reporting threshold phased to $5,000 threshold for third-party settlement organizations (Venmo, PayPal, Stripe).
- Maximum Earned Income Tax Credit (EITC) increased for qualifying families.
- Alternative Minimum Tax (AMT) exemption amounts increased for high earners.