Some MS taxpayers can get these new tax deductions in 2026. Here’s what to know
As Mississippians gather their tax documents for the 2025 filing season, experts are urging residents to take a closer look at newly introduced federal deductions that could significantly lower what they owe or boost their refunds.
The One Big Beautiful Bill Act that President Donald Trump signed into law July 4, impacts federal taxes, credits and deductions, according to the Internal Revenue Service.
Mississippi has adopted “rolling conformity” to the bill, and mostly allows you to use the same itemized deductions for state income tax as federal income tax, according to the state Department of Revenue.
Here’s what taxpayers can expect regarding the new and enhanced deductions.
When is the 2025 tax filing season?
The tax season officially began Jan. 26, and taxpayers have until April 15 to file their returns, according to the IRS.
What are tax deductions?
A tax deduction is an amount subtracted from the taxpayer’s income when filing, according to the IRS. Deductions — including student loan interest, mortgage interest and charitable donations — lower the federal income tax obligation.
To take a tax deduction, you need to prove your expenses through documentation like receipts, bank statements and tax forms.
What are the new deductions for the 2026 filing season?
These are the new deductions for the 2026 filing season, according to the IRS:
- Seniors ages 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
Each of these deductions are available for both itemizing and non-itemizing taxpayers, phase out based on income level and have certain eligibility requirements, according to the IRS.
What are the standard deductions for tax year 2025?
The standard deduction, which the IRS adjusts annually for inflation, are as follows for the 2025 tax year, according to the IRS:
- $15,750 for single or married filing separately
- $31,500 for married couples filing jointly or qualifying surviving spouse
- $23,625 for head of household
