Brace yourself, your 2026 tax return could look very different. Several popular tax deductions set to be eliminated by the IRS in 2026 will expire if Congress does not act.
I’ve followed tax changes for years, and every time lawmakers tweak the code, people feel the impact fast. If you claim certain write-offs now, you need to know what might disappear soon. Ready to see what could vanish and how it could hit your wallet?
Most of these changes trace back to the Tax Cuts and Jobs Act (TCJA) of 2017, which temporarily reshaped deductions through 2025. Unless lawmakers extend them, the tax code will revert to pre-2018 rules in 2026.
That shift could shrink some deductions while reviving others.
The expanded standard deduction could shrink in 2026
The standard deduction nearly doubled under the TCJA. In 2024, single filers can claim $14,600, and married couples filing jointly can claim $29,200, according to IRS inflation adjustments.
In 2026, that boosted amount will likely drop back to pre-2018 levels, adjusted for inflation.
Why does that matter? The higher standard deduction currently reduces taxable income for millions of households. If Congress lets it expire, more people may itemize again, and many will see higher taxable income.
What This Means for You
- Lower standard deduction = more taxable income
- Some taxpayers may benefit from itemizing again
- Middle-income earners could feel the biggest shift
I remember when itemizing felt like a yearly puzzle. The higher standard deduction simplified everything. If it shrinks, expect more paperwork and more strategy. Ever wondered why tax prep companies love complicated years? There’s your answer.
The $10,000 salt deduction cap could expire, but that’s complicated
The TCJA capped the State and Local Tax (SALT) deduction at $10,000. That cap hits homeowners in high-tax states hard. In 2026, the cap will expire, and unlimited SALT deductions could return unless lawmakers intervene.
Sounds great, right? Not so fast. The full restoration would primarily benefit higher-income taxpayers who itemize.
Why It Matters
- High property tax states like New York and California could see major shifts
- High earners would benefit the most
- Federal revenue impact could spark political debate
The SALT cap created one of the most controversial tax changes in recent history. If lawmakers remove it, some homeowners will celebrate. Others may see little change. IMO, this one will spark serious political fireworks before 2026 hits.
The qualified business income (QBI) Deduction May disappear
Self-employed workers and small business owners currently claim the Section 199A Qualified Business Income (QBI) deduction, which allows up to 20% deduction on qualified income. Millions of freelancers and LLC owners use it to lower their tax bills.
In 2026, that deduction expires unless Congress extends it. According to IRS data, roughly 20 million pass-through businesses benefit from this break.
Who Should Pay Attention?
- Freelancers
- Consultants
- Small business owners
- Gig workers
If you run a side hustle, you need to watch this closely. I’ve seen business owners save thousands each year with QBI. Losing that deduction would sting, no exaggeration.
The mortgage interest deduction limits will revert
Right now, homeowners can deduct mortgage interest on loans up to $750,000. Before 2018, that cap sat at $1 million. In 2026, the limit will likely return to the higher threshold.
At first glance, that sounds like good news. But here’s the twist: if the standard deduction drops at the same time, fewer people may itemize anyway.
The Bigger Picture
- Higher loan limit returns
- Lower standard deduction could offset benefits
- High-value homeowners benefit most
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If you recently bought a home, you should run projections for 2026 and beyond. Ever notice how tax policy always rewards planning?
The child tax credit enhancement will expire
The TCJA temporarily doubled the Child Tax Credit from $1,000 to $2,000 per qualifying child. In 2026, that credit will revert to pre-2018 levels unless lawmakers act.
Families rely heavily on this credit. The IRS reports that tens of millions of households claim it annually.
Why Families Should Prepare
- The credit amount could drop by $1,000 per child
- Refundable portion may shrink
- Income phase-out thresholds could change
If you have multiple kids, that reduction adds up fast. I’ve seen families build entire refund strategies around this credit. Losing half of it would hurt, plain and simple.
The higher estate tax exemption will drop dramatically
The TCJA doubled the federal estate tax exemption. In 2024, individuals can shield over $13 million, and married couples can protect more than $27 million. In 2026, that exemption will likely be cut in half.
This change primarily affects high-net-worth households, but it reshapes estate planning nationwide.
Key Impacts
- Larger estates could face federal estate taxes
- Wealth transfer strategies may accelerate before 2026
- Financial planners already prepare clients
If you hold significant assets, you should consult a tax advisor now. Waiting until 2026 could limit your options. Estate planning feels boring until the bill arrives, trust me.
Moving expense deduction will remain limited
Before 2018, many workers could deduct moving expenses related to job relocation. The TCJA eliminated that deduction for most taxpayers, except active-duty military personnel.
That suspension continues through 2025. Unless lawmakers restore it, the deduction will technically revert in 2026 to the old rules. Still, Congress could revise it again.
Why This Matters
- Job-related relocation could regain tax benefits
- Military families already qualify
- Corporate relocation packages may change
If you anticipate a work-related move, track it carefully. Employers often structure benefits to comply with tax rules. Changes here could influence hiring incentives.
Final thoughts on popular tax deductions set to be eliminated by the IRS in 2026
Tax law never sits still. The popular tax deductions set to be eliminated by the IRS in 2026 stem from temporary provisions under the 2017 overhaul.
Some deductions may shrink, others may expand, and Congress could rewrite everything before the deadline.
So what should you do now? Start planning early. Run projections for 2026 income. Talk with a CPA. Adjust withholding if necessary. FYI, the taxpayers who win always plan 🙂
I watch these changes closely because small tweaks create big consequences. Would you rather react in April 2027 or prepare today? The choice sits in your hands.
Disclaimer – This list is solely the author’s opinion based on research and publicly available information. It is not intended to be professional advice.
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