Navigating the 2026 Tax Season: Key Credits and Deductions That Could Boost Your Refund
With the 2026 tax filing window now open, financial advisors and the Internal Revenue Service (IRS) are urging taxpayers to review a slate of new and modified credits and deductions that could put thousands back in their pockets. Failing to claim these benefits is a common and costly mistake.
A recent analysis underscores the stakes: the IRS estimates approximately 9 million taxpayers miss out on crucial benefits each year. Research from the Peter G. Peterson Foundation highlights that credits related to child care and healthcare are among the most significant, placing families and individuals under particular financial pressure if they fail to claim them.
Understanding the distinction between credits and deductions is the first step to maximizing a return. Tax credits provide a dollar-for-dollar reduction of your tax bill. "Refundable credits are particularly powerful," notes a senior IRS tax analyst. "If the credit amount exceeds what you owe, the difference is paid to you as a refund. This makes filing worthwhile even for those who might not otherwise be required to." Non-refundable credits, however, can only reduce your liability to zero.
Conversely, tax deductions lower your taxable income, thereby reducing the portion of your earnings subject to tax. Several deductions have been enhanced for the 2026 tax year, expanding eligibility or increasing allowable amounts.
Taxpayers are encouraged to consult the official IRS website for a complete list of qualifications. Reputable resources from organizations like The Tax Foundation and guides from tax preparation services such as TurboTax can also provide detailed explanations and filing guidance.
Voices from the Public
Michael Chen, Small Business Owner, Seattle: "As someone who files both personal and business taxes, these annual changes are a lot to track. This breakdown of what's new for 2026 is incredibly helpful. The expanded home office deduction could be a real benefit for my situation."
David Rodriguez, Financial Planner, Miami: "The data on unclaimed credits is staggering but not surprising. Proactive planning is key. I advise clients to review these provisions mid-year, not just at filing season, to adjust withholdings or make eligible expenditures."
Sarah Johnson, Freelance Graphic Designer, Austin: "It's infuriating. The system is so complex that it feels designed for us to fail and miss out. Why do we have to dig through legalese every year just to get what we're owed? These 'benefits' should be automatic for qualifying people."
Priya Mehta, Graduate Student & Research Assistant, Boston: "The clarification on refundable versus non-refundable credits was useful. As a student with a modest income, identifying which credits can actually generate a refund is critical for my tight budget."
Damon C. Williams is a Philadelphia-based journalist reporting on trending topics across the Mid-Atlantic Region.
This article originally appeared on Delaware News Journal.