With the April 15 tax filing deadline fast approaching, tax professionals are urging the public to begin organizing their financial documents immediately. While tax season is an annual routine, the 2026 filing season brings with it a host of significant legislative changes, signed into law this past summer, that could mean substantial savings for frum families, particularly those in high-tax states like New York and New Jersey.

“Don’t wait until the last minute but also don’t rush,” Tom O’Saben, director of tax content at the National Association of Tax Professionals told Associated Press. However, given the new deductions available this year, taking the time to review the changes is essential for maximizing refunds.

Perhaps the most significant development for families in the frum community is the adjustment to the State and Local Tax (SALT) deduction. For years, the deduction was capped at $10,000, a figure that disproportionately penalized homeowners in areas with high property taxes and state income taxes, such as the Tri-State area.

Under the new “Working Families Tax Cut” enacted in July 2025, the SALT deduction cap has been raised to $40,000.

For families who previously took the standard deduction because their itemized deductions (state taxes + mortgage interest + tzedakah) didn’t exceed the threshold, this change is a game-changer. With the ability to deduct up to $40,000 in state and local taxes, many more households will likely find that itemizing yields a lower tax bill than the standard deduction.

For those who do not itemize, the standard deduction has also been adjusted for inflation and new policy.

Married Filing Jointly: Increased to $31,500.
 – Single Filers: $15,750.
 – Heads of Households: $23,625.
– Child Tax Credit: Vital for Large Families
In a welcome update for growing families, the Child Tax Credit (CTC) has been adjusted. The total credit now stands at $2,200 per qualifying child.

Notably, $1,700 of this credit is refundable (known as the Additional Child Tax Credit), meaning that even if a family owes no federal income tax, they may still receive a refund check for that amount per child, provided they have at least $2,500 in earned income.

The full credit is available for joint filers with an annual income of up to $400,000 ($200,000 for single filers), covering the vast majority of households.

New Deductions: Tips, Overtime, and Car Loans
The tax overhaul signed by President Trump includes several targeted deductions that require a new form, Schedule 1-A.

 – Tips: While widely discussed as “no tax on tips,” the reality is a deduction capped at $2,500 annually for voluntary tips in specific service industries (such as food service and housekeeping). This phases out for joint filers earning over $300,000.
– Car Loan Interest: Interest paid on new vehicle loans is now deductible for many taxpayers.
Overtime: The new law includes provisions for deductions on overtime pay.
 – Seniors: Enhanced deductions are available for those who were 65 or older by December 31.

With the SALT cap raised, the math for itemizing has changed. Taxpayers should carefully tally their tzedakah receipts, tuition payments (where applicable as medical/childcare in specific instances, though standard tuition remains non-deductible), and medical expenses.

To determine if you should itemize, ask:
 – Did you pay significant state income or property taxes? (Now deductible up to $40k).
Do you have mortgage interest?
 – Do you have significant charitable contributions?
If the total of these expenses exceeds $31,500 (for couples), itemizing is likely the better path.

Officials warn that tax season is prime time for scammers. The IRS emphasizes that they will never contact taxpayers via social media, text, or unsolicited emails.

Furthermore, with the IRS phasing out paper checks as of last September, all taxpayers are strongly encouraged to sign up for direct deposit to avoid delays.

When filing:
 – Verify Social Security Numbers: Ensure names match Social Security cards exactly, especially for newlyweds who may have changed their names.
– Gather All Documents: In the digital age, many W-2s and bank forms are not mailed. Log in to your portals to download them.

The IRS Free File program remains available for those earning $89,000 or less, though the “Direct File” pilot program will not be offered this year.