An Executive Order for Your Wallet: Individual Tax Wins in 2026

Feb 16
2 min read

A professional office desk featuring a laptop displaying a "Presidential Planning: Your 2026 Tax Strategy" blog post for Lattice Group. Beside the laptop sits a bronze bust of Abraham Lincoln, a quill pen, and a tablet showing a rising growth chart. In the background, an American flag is visible through a window overlooking a snowy winter scene.

While President’s Day usually means a day off or a great deal on a new mattress, at Lattice Group, we’re looking at it through a different lens. This year, the holiday marks the first full month of the 2026 filing season—a season defined by the sweeping changes of the One Big Beautiful Bill (OBBB).

The "Executive Branch" of your household needs a strategy. From permanent bracket shifts to brand-new deductions for everyday workers, here is what you need to know this President’s Day.

1. The "Big Beautiful" Standard Deduction

The days of worrying about "sunsetting" tax cuts are over. The OBBB has made the higher standard deduction permanent and indexed it for inflation.

Filing Status	2026 Standard Deduction
Married Filing Jointly	$32,200
Head of Household	$24,150
Single / Married Filing Separately	$16,100

For most Americans, this means the "Standard" choice is the smartest one, significantly lowering your taxable income without the headache of tracking every receipt.

2. New "Working Class" Deductions

In a historic shift, 2026 introduces deductions aimed directly at hourly and service-industry workers. If you fall into these categories, your "take-home" pay just got a presidential boost:

No Tax on Tips: You can now claim a dollar-for-dollar deduction for "qualified tips" up to $25,000.
Overtime Relief: Hourly workers can deduct the "premium" portion of their overtime pay (the "half" in time-and-a-half) up to $12,500 ($25,000 for joint filers).
Auto Loan Interest: In a nod to the classic President’s Day car sale, interest on certain new auto loans may now be deductible for eligible buyers.

3. The "Senior Dividend"

If you are 65 or older, this is your year. On top of the standard deduction, the OBBB introduced a new Senior Deduction of up to $6,000 ($12,000 for joint filers).

Note: This benefit begins to phase out if your modified adjusted gross income (MAGI) exceeds $75,000 (single) or $150,000 (joint).

4. SALT is Back (Mostly)

For those in high-tax states who prefer to itemize, the "SALT" cap—which limited state and local tax deductions to $10,000 for years—has been expanded. For 2026, the cap is raised to $40,400 for most households, providing massive relief for homeowners.

A Presidential Move: Ditch the Paper Check

As part of the recent executive order Modernizing Payments To and From America's Bank Account, the IRS is officially phasing out paper refund checks.

Our Advice: If you haven’t already, ensure your filing includes accurate Direct Deposit information. It’s no longer just the fastest way to get your refund; it’s becoming the only way.

Claim Your Financial Independence

President’s Day is about leadership. This year, take the lead on your financial future by understanding how these 2026 updates apply to your unique situation.

Would you like us to review your recent paystubs to ensure your withholdings are correctly capturing the new "No Tax on Overtime" deductions?