Navigating the 2026 Tax Filing Season: Deductions and Key Changes
The 2026 tax filing season for the 2025 tax year opens in late January and runs through the Wednesday, April 15th deadline [IRS]. Taxpayers should be aware of several key deductions and changes implemented by the One Big Beautiful Bill Act (OBBB) that could impact their returns. Proactive preparation and gathering supporting documentation now will streamline the filing process.
Understanding the 2026 Tax Filing Process
The IRS expects approximately 164 million individual tax returns to be filed for the 2025 tax year [IRS]. While the IRS pre-populates some information, it’s crucial to review everything carefully. Many potential deductions require taxpayers to provide supporting documentation, such as receipts and statements, as the IRS does not automatically include these.
Key Tax Deductions for 2026
Deductible Healthcare Costs
Taxpayers who incur significant healthcare expenses may be able to deduct a portion of those costs. This includes expenses like transportation, prescribed diets, vaccinations, and certain medications exceeding the personal statutory contribution. Details on eligible costs are available on the Tax Authorities’ website.
Deductions are subject to a threshold amount, and expenses reimbursed by insurance are not deductible.
Healthcare Costs for Dependents
You may also be able to deduct healthcare costs for qualifying individuals, including:
- Your tax partner
- Your children up to age 27
- Parents, siblings, or other dependents who live with you and require your care
- Severely disabled individuals aged 27 or older who reside with you and require institutional care
Eligible expenses include travel, laundry, extra clothing, and medication costs.
Charitable Donations
Donations to qualified charities (ANBI – public benefit institutions or associations) are often deductible. Proof of donation, such as a bank statement, is required; cash donations are not deductible. A minimum donation threshold may apply, with only the amount exceeding that threshold being deductible.
Travel Deduction (Commuting Expenses)
Taxpayers who commute by public transportation may be eligible for a travel deduction. This deduction is a fixed amount based on distance and frequency of travel, not actual costs. Any employer-provided travel compensation must be subtracted from the fixed amount.
Mortgage Interest and Homeownership Costs
Homeowners can typically deduct mortgage interest and certain costs associated with purchasing a home, such as notary fees and appraisal costs. Periodic payments for leasehold, building, or encumbrance are also deductible if the land is not owned.
Supplementary Pension Premiums and Deposits
Premiums paid for annuity insurance policies or deposits into annuity accounts may be deductible, provided certain conditions are met regarding annual and reservation space.
Spousal Support (Alimony)
Divorced individuals paying spousal support may be able to deduct a portion of those payments. The deductible percentage is subject to income limits. For 2025, the maximum deduction is 37.48 percent for incomes over 76,817 euros, increasing to 37.56 percent for incomes over 78,426 euros in 2026 [TurboTax]. Recipients of spousal support must report it as income.
Additional Costs for Caring for a Severely Disabled Person
Individuals providing care for a severely disabled person aged 21 or older who typically resides in a Wlz institution (Long-term Care Act) may be able to deduct additional costs incurred during weekend or holiday care.
Critical Considerations
A deduction of 1,000 euros does not translate directly to 1,000 euros in savings. The actual tax savings depend on your individual tax bracket. While proof of deductions is not initially required, the tax authorities may request it, so it’s essential to keep records.
Retroactive Deduction Claims
Taxpayers can amend prior tax returns to claim missed deductions for up to five years. For example, in 2026, you can reclaim a deduction from 2021.
Resources for Assistance
Taxpayers needing assistance can explore resources such as IRS Free File, Volunteer Income Tax Assistance, and Tax Counseling for the Elderly programs [IRS]. It’s also advisable to carefully choose a tax preparer and avoid unethical “ghost” preparers.