3 Things 1-26-26

 Thing One

Tax Season 2026 Is Here: What’s Different This Year (and Why You Should Care)

If you’re filing your 2025 taxes and things feel a little unfamiliar, you’re not imagining it. Tax season 2026 is the first one shaped by the new tax law passed last summer, and it brought a mix of bigger deductions, new credits, extra forms, and fewer free filing options. Even if your income didn’t change much, the rules around it probably did.

The good news? Many deductions are larger. The standard deduction went up again, and the cap on state and local tax deductions jumped from $10,000 to $40,000—for now. That higher SALT cap could make itemizing worthwhile again for homeowners in high-tax states, especially married couples. It’s temporary, but it can make a real difference on this year’s return.

Families and retirees also get a boost. The child tax credit increased to $2,200 per qualifying child, with part of it still refundable for lower-income households. Meanwhile, taxpayers age 65 and older may qualify for a new $6,000 “senior bonus” deduction, which stacks on top of existing deductions and can meaningfully lower taxable income for retirees.

There are also brand-new deductions that come with extra paperwork. A redesigned Schedule 1 and a new Schedule 1-A now cover things like limited car-loan interest, certain tip income, and eligible overtime pay. These are “above-the-line” deductions, meaning you can benefit even if you don’t itemize—but expect more questions from your tax software or preparer this year.

On the filing side, one popular option is gone. The IRS has ended its Direct File program for 2026, so free filing now means using IRS Free File (if you qualify), volunteer programs like VITA or TCE, paper forms, or commercial software that may or may not stay free depending on your situation.

If you sell online or use payment apps, there’s some relief. The IRS backed away from the $600 reporting rule for Form 1099-K and returned to the older threshold of $20,000 and 200 transactions. Casual sellers get more breathing room, but anyone running a side hustle should still keep clean records to avoid IRS headaches.

Business owners have something to smile about too. Full expensing is back, allowing 100% bonus depreciation on qualifying equipment placed in service after January 19, 2025. Timing matters, so it’s worth double-checking when assets were actually put into use.

The big takeaway? This isn’t a “file and forget” year. With new deductions, new schedules, fewer filing shortcuts, and an IRS dealing with staffing and budget issues, filing early and double-checking your eligibility for tax breaks matters more than ever. Done right, some filers could see noticeably larger refunds—but only if they claim everything they’re entitled to.

Thing Two  

The Long-Term Care Conversation Too Many People Are Putting Off

Long-term care expenses are one of the most common—and most ignored—parts of retirement planning. About 56% of people will need some form of long-term care during their lifetime, whether that means help at home, assisted living, or skilled nursing care. Yet according to industry data, only about 3% of Americans over age 50 have any long-term care coverage at all. That gap tells a simple story: this isn’t a low-probability risk—it’s a planning problem.

Most people aren’t ignoring long-term care because they don’t think they’ll ever need it. They’re avoiding it because the topic feels overwhelming. Long-term care insurance has a reputation for being expensive, complicated, and unpredictable, especially when people hear about premium increases on older policies. For many, it feels easier to postpone the decision than to commit to something that seems costly or uncertain.

The problem is that postponing doesn’t make the risk smaller—it just makes the options fewer. Without a plan, long-term care costs tend to arrive suddenly and hit retirement savings hard, often pulling spouses or adult children into caregiving roles they didn’t expect or prepare for. Even well-funded retirement plans can unravel quickly once care is needed.

What often gets missed in this conversation is that long-term care planning doesn’t have to mean buying a massive, high-dollar policy. For many people, the most realistic and accessible solution is a smaller, more affordable policy purchased earlier, while health is still good. Even limited coverage can help protect assets, preserve independence, and give families better options when care is needed.

In practical terms, the ideal window to explore coverage is usually the late 40s through the mid-50s. At that stage, premiums are typically much lower and underwriting is far more forgiving. Waiting until your 60s often leads to significantly higher costs, fewer policy options, or even being declined altogether due to health changes that may feel minor but matter a lot to insurers.

Smaller policies can be designed to create a meaningful financial buffer without overcommitting. That might mean focusing on in-home care, choosing a two- or three-year benefit period instead of lifetime coverage, selecting a longer elimination period to lower premiums, or opting for partial daily benefits rather than full cost replacement. The goal isn’t to insure every possible outcome—it’s to prevent a care event from becoming a financial crisis.

There are also smart ways to make coverage more affordable. For those with Health Savings Accounts, HSA funds can be used to pay eligible long-term care insurance premiums, and those payments may be tax-free as qualified medical expenses for you or your spouse. That’s a strategy many people overlook, even when they already have money set aside.

Long-term care planning isn’t about predicting the worst—it’s about preserving choice. A modest policy purchased at the right age can keep care at home longer, reduce the burden on loved ones, and protect the financial independence you’ve worked decades to build. When more than half of us will eventually need care, the biggest risk isn’t planning imperfectly—it’s not planning at all. 

Thing Three

Just A Thought  

"Yesterday I was clever, so I wanted to change the world. Today I am wise, so I am changing myself." - Rumi