Some SC taxpayers will be eligible for these new tax deductions in 2026. Here’s what to know
It’s everyone’s favorite time of the year: tax season.
But some changes have made this season a little more interesting. President Donald Trump’s signature legislation, the One, Big, Beautiful Bill Act, which passed in July 2025, has expanded tax cuts for certain individual taxpayers.
Before you do your taxes this year, if you’re filing for yourself, review the new and enhanced tax deductions to see if you qualify.
Your state tax deductions will be different from your federal tax deductions, however, because South Carolina has not yet voted to conform to the OBBBA. That means when you file your state return, the deductions need to be added back to your income.
The deductions will still be seen on your federal tax return. If the state ends up conforming to the OBBBA, you will have to amend your state tax return to get the full deductions.
What are tax deductions?
A deduction is an amount subtracted from a taxpayer’s income when filing. Deductions lower the taxable income, resulting in a lower federal income tax obligation, according to the Internal Revenue Service.
You need documents to show expenses or losses you want to deduct. The tax software you want to use will calculate deductions for you and enter them in the right forms. If you file a paper return, your deductions go on Form 1040 and may require extra forms.
Here are the new tax deductions:
New deductions for individuals for 2026 filing season
The following new tax deductions are available for both itemizing and non-itemizing taxpayers. Itemized deductions are specific, allowable expenses a taxpayer can claim instead of taking the standard deduction.
This is beneficial for taxpayers when their total expenses, such as medical expenses, mortgage interest and state taxes exceeds the standard deduction amount.
Each deduction phases out once a taxpayer reaches a certain income and has specific eligibility requirements, which can be viewed on the One, Big, Beautiful Bill provisions page for individuals and workers.
- Seniors age 65 and older may be eligible to claim an additional $6,000 deduction
- Tipped workers may be eligible to deduct up to $25,000 for qualified tips
- Individuals may be eligible to deduct up to $12,500 ($25,000 for joint filers) for qualified overtime
- Individuals may deduct up to $10,000 in qualified passenger vehicle loan interest
Standard deduction amounts for the 2025 tax year
The standard deduction is a flat amount based on federal income tax filing status, such as single, married filing separately, married filing jointly, head of household or qualifying surviving spouse. Every year, the IRS adjusts the standard deduction for inflation.
- $15,750 for single or married filing separately
- $31,500 for married couples filing jointly or a qualifying surviving spouse
- $23,625 for head of household
Most take the standard deduction, but some don’t qualify. Those with deductible expenses and losses that exceed the standard deduction can choose to itemize deductions.
How to file taxes for free?
Taxpayers who earned less than $89,000 in 2025 can use Free File guided tax software to prepare and electronically file their 2025 federal income tax returns for free.
All taxpayers can use Free File Fillable Forms regardless of income level.
To get tax help, you can use the IRS’s Interactive Tax Assistant. Type one or two words of your question into the search bar, and the tool will pull all available documents that relate.
This story was originally published February 21, 2026 at 6:00 AM.