Learn the concepts that make a tax return make sense. This version separates 2025 return filing from 2026 planning, explains the biggest current changes, and uses official IRS and Virginia Tax links throughout.
The return being filed in 2026 generally reports income earned in calendar year 2025.
These amounts generally apply to 2026 income reported on returns filed in 2027.
These items can materially change what documents someone should gather or how they plan during the year.
New deductions are available subject to specific eligibility rules and income phaseouts. They are generally claimed on Schedule 1-A and can be available even if the taxpayer does not itemize.
Read IRS guidance →For 2025, the Child Tax Credit can be up to $2,200 per qualifying child, with up to $1,700 potentially refundable through the Additional Child Tax Credit.
Child Tax Credit →The 2025 overall deduction limit for state and local taxes increased to $40,000 ($20,000 if married filing separately), subject to a reduction at higher modified adjusted gross income levels.
Schedule A instructions →For third-party settlement organizations, both tests generally must be exceeded for the federal reporting requirement. Taxable business income must still be reported whether or not a 1099-K is issued.
Understand Form 1099-K →Business mileage is 72.5 cents per mile for Jan. 1-June 30, 2026 and 76 cents per mile for July 1-Dec. 31, 2026. Keep dated mileage records so the correct rate can be applied.
IRS mileage rates →For reportable payments made after 2025, the minimum threshold for certain information returns increased to $2,000, with inflation adjustments beginning in 2027. The exact form and payment type still matter.
2026 information-return instructions →A good Tax 101 should explain how the pieces connect, not just define vocabulary.
Common sources include wages, self-employment, interest, dividends, capital gains, retirement distributions, rental income, unemployment, prizes, and taxable digital-asset activity.
A tax form is evidence and reporting information. Whether an amount is taxable depends on what the payment represents and the applicable tax rules.
Filing status affects the standard deduction, tax brackets, eligibility for certain credits, and other limitations. Common statuses are Single, Married Filing Jointly, Married Filing Separately, Head of Household, and Qualifying Surviving Spouse.
Think of the return as a sequence: income → adjustments → adjusted gross income (AGI) → standard or itemized deduction plus any applicable special deductions → taxable income. Tax brackets apply to taxable income, not simply to gross pay.
Moving into a higher bracket does not make all your income taxable at that higher percentage. Tax is applied in layers, with each layer taxed at its own rate.
Your refund is not the same thing as your total tax. A simplified view is: payments and refundable credits minus the final tax liability. Larger withholding can create a larger refund even if the underlying tax did not decrease.
Keep source documents and records that explain the amount, business purpose, date, and category. For business expenses, a receipt alone may not explain why an expense was ordinary and necessary for the business.
Reduce income before the tax is calculated.
Effect: A $1,000 deduction does not usually reduce tax by $1,000.
Reduce tax after the tax is calculated.
Effect: A $1,000 nonrefundable credit can reduce qualifying tax by up to $1,000.
Schedule C generally starts with business income and subtracts allowable business expenses to determine net profit or loss. That net profit can affect both income tax and self-employment tax.
Self-employed taxpayers often do not have an employer withholding enough tax from each payment, so quarterly estimated payments can be necessary.
Virginia uses May 1, June 15, September 15, and January 15 as its general quarterly dates for individuals.
This intentionally estimates only regular federal income tax from ordinary tax brackets. It does not pretend to calculate a full refund.
Estimated regular federal income tax
Before credits, self-employment tax, AMT, NIIT, capital-gain rates, additional deductions, surtaxes, withholding, and other return-specific rules.
Federal and Virginia schedules are not identical for the first payment. The cards below show the general individual calendar-year dates.
For income from Jan 1-Mar 31.
For income from Apr 1-May 31.
For income from Jun 1-Aug 31.
For income from Sep 1-Dec 31.
General first installment date.
General second installment date.
General third installment date.
General fourth installment date.
Special rules, weekends/holidays, disaster relief, fiscal years, farmers/fishermen, and changes in when income begins can affect due dates and required amounts. See the official links in the Resource Center.
These are taxable-income thresholds for tax year 2026. The estimator above uses these same ordinary-income bracket boundaries.
| Rate | Single | Married filing jointly | Head of household |
|---|---|---|---|
| 10% | $0-$12,400 | $0-$24,800 | $0-$17,700 |
| 12% | $12,401-$50,400 | $24,801-$100,800 | $17,701-$67,450 |
| 22% | $50,401-$105,700 | $100,801-$211,400 | $67,451-$105,700 |
| 24% | $105,701-$201,775 | $211,401-$403,550 | $105,701-$201,750 |
| 32% | $201,776-$256,225 | $403,551-$512,450 | $201,751-$256,200 |
| 35% | $256,226-$640,600 | $512,451-$768,700 | $256,201-$640,600 |
| 37% | Over $640,600 | Over $768,700 | Over $640,600 |
Source: IRS 2026 inflation adjustments and Rev. Proc. 2025-32 →
Use Tax 101 for the concepts, the Resource Center for official tools, and the Client Portal when you are ready to move into preparation.