The 2026 Tax Season Could Save You Tens of Thousands — What Taxpayers Need to Know

As the time to file taxes in 2026 is coming soon, many people have yet to learn about all the ways the code has been updated. A previous Men's Journal article provided information about many of the new rules, including no tax on tips, no tax on overtime, and deductions for seniors. This article will detail additional changes, including one that could save you tens of thousands when you file with the IRS.

SALT Caps Are Increasing Dramatically

When there are lengthy discussions about how the tax code should be changed, it can be easy for observers to not pay close attention. However, people who will soon be filing their taxes should know about this change since it could save them tens of thousands of dollars.

In December 2025, a CBS affiliate called WDTV covered the tax code changes that were made under the One Big Beautiful Bill Act, including to the state and local tax (SALT) deductions. SALT allows people in high-tax states to deduct money they pay to their local governments when they file with the IRS. Being able to do so can now make a much more significant difference to how much tax you pay. Previously, the SALT deduction was capped at $10,000, but it has now been raised to $40,000, with small annual bumps for inflation to come annually.

There are two more things that those hoping to take advantage of the new cap must keep in mind. First, the amount that is allowed to be deducted will revert to $10,000 in 2030, unless that is changed before that. Second, anyone who has a gross income of over $500,000, either individually or as part of a married couple combined, will see the cap diminished by 30 cents for every dollar they make over that threshold.

Taxpayers Must Now File for Direct Deposit With Very Few Exceptions

In January 2026, The Economic Times reported on how tax laws and regulations have changed over the last year. That article partially focused on one new rule that is of high importance. It is now a requirement for Americans to file to receive direct deposit refunds, as the availability of receiving paper checks is mostly over. As such, the IRS is encouraging all filers to be vigilant in double-checking that they provide the government with their correct bank information.

A September 2025 statement from the IRS revealed that the paper check tax refunds were being phased out as for refunds issued after that month, due to Executive Order 14247. The agency also explained that the move was meant to protect taxpayers, speed up refunds, and cut costs. The text of that Executive Order, which can be found on the White House's website, details the extremely limited reasons why an exception might be granted.

The Only Reasons Why an Exception to the Direct Deposit Requirement Might Be Granted:

• If you "do not have access to banking services or electronic payment systems."
• In cases that "certain emergency payments where electronic disbursement would cause undue hardship."
• When there are "national security- or law enforcement-related activities where non-EFT transactions are necessary or desirable."
• Under "other circumstances as determined by the Secretary of the Treasury."

Based on the language of the Executive Order, it is very clear that getting an exception will be difficult. Fortunately, many people have become accustomed to transferring money digitally, so many Americans likely won't have a desire to request one.