Summary of "The IRS Just Changed Everything For 2026! Most Americans Don't Know This!"

The IRS Just Changed Everything For 2026! Most Americans Don’t Know This!

Key Finance-Specific Content Summary

1. IRS 2026 Tax Bracket Changes

The IRS announced new federal income tax brackets for 2026, adjusting thresholds upward due to inflation.
This inflation adjustment prevents taxpayers from being pushed into higher tax brackets solely because of cost-of-living raises.
Top tax bracket (37%) thresholds:
- Single filers: Income over $640,600
- Married filing jointly: Income over $768,700
All tax brackets’ thresholds increased, allowing taxpayers to earn more before moving into higher tax brackets.
The U.S. has a progressive tax system: different portions of income are taxed at different rates (e.g., 10%, 12%, 22%, etc.), not a flat rate on total income.

2. Standard Deduction Increase

Standard deduction amounts for 2026:
- Single filers: $16,100 (up from $15,750 in 2025)
- Married filing jointly: $32,200 (up from $31,500)
The increase means taxpayers can shield more income from taxation.
Example: A single filer in the 22% bracket saves about $77 in taxes from the deduction increase; married couples save about $154.
About 90% of taxpayers take the standard deduction rather than itemizing.

3. Capital Gains Tax Changes

Income thresholds for long-term capital gains tax rates (0%, 15%, 20%) are increased for 2026.
This allows investors to earn more before hitting higher capital gains tax rates.
Relevant for those investing in stocks, real estate, or other assets.
Encouragement to invest using platforms like Moomoo, which offers free Nvidia stock bonuses and educational resources.
Moomoo offers up to 8.1% APY on invested funds and free stock incentives (up to $1,000 in Nvidia stock depending on deposit).

4. Estate and Gift Tax Exemption

The estate tax exemption amount also increased for 2026.
This impacts wealthier individuals planning generational wealth transfer.
Important for those interested in legacy and estate planning.

5. Earned Income Tax Credit (EITC)

Income eligibility limits for the EITC increased.
EITC benefits low to moderate-income working individuals and families.
Many eligible taxpayers do not claim this credit, missing out on thousands of dollars.
Viewers encouraged to check eligibility with tax professionals.

Five Action Steps to Prepare for 2026 IRS Changes

Review your current tax situation
- Pull your 2024 tax return.
- Identify your taxable income and tax bracket.
- Estimate your 2026 income and see where you fall in new brackets.
Adjust your tax withholding if needed
- Avoid giving the IRS an interest-free loan by overpaying taxes.
- Use the IRS withholding calculator or consult a tax professional.
Maximize deductions
- Keep records of charitable donations (including tithes), medical expenses, business expenses, and other itemized deductions.
- Decide between standard deduction or itemizing based on which yields greater tax savings.
Plan investment moves strategically
- Understand capital gains tax brackets before selling investments.
- Consult a tax professional to optimize timing and tax impact.
Consult a tax professional annually
- Have a tax strategy meeting each year.
- Discuss planned purchases or investments that affect tax liability.
- Employ a CPA or tax advisor to save on taxes legally and ethically.

Additional Finance Recommendations & Tips

Avoid relying on IRS customer service due to workforce furloughs and long wait times.
Use high-yield savings accounts to grow emergency funds or savings with interest rates over 4.5% APY.
- Recommended banks/platforms include:
  - SoFi (4.5% APY + $300 bonus with direct deposit)
  - Bread Savings (4.25% APY, no debit card)
  - Barclays (3.9% APY)
- Strategy: Direct deposit a portion of paycheck into high-yield accounts to maximize interest earnings.
Avoid large tax refunds; instead, adjust withholding to increase monthly take-home pay and invest/save the difference.
Wealth building is about consistent, smart money decisions rather than big wins.
Emphasis on financial literacy for the average person, not just advanced investors.
Encouragement to start investing even with small amounts using beginner-friendly platforms like Moomoo.

Disclaimers & Disclosures

This content is not formal financial advice. Viewers are encouraged to do their own research and consult professionals. Tax strategies vary by individual circumstances. Personal anecdotes about tax strategy and mindset are shared. The presenter emphasizes serving average Americans and beginners in finance. Transparency about personal financial journey and spiritual views influencing money mindset is maintained.

Tickers, Assets, and Instruments Mentioned

Stocks: Nvidia (free stock promotion on Moomoo)
Investment platform: Moomoo (stocks, ETFs)
Savings accounts: SoFi, Bread Savings, Barclays (high-yield savings)
Tax-related instruments: Federal income tax brackets, capital gains tax brackets, standard deduction, estate tax exemption, Earned Income Tax Credit (EITC)

Presenters / Sources

Anthony O’Neal – Financial educator and presenter of the video.
Source of IRS information: CNBC article dated October 9, 2024, titled “IRS announces new federal income tax brackets for 2026.”
Tax professional “Chana” mentioned as expert to be brought on for deeper tax education.

Summary

The video breaks down the IRS’s 2026 tax bracket changes, standard deduction increases, capital gains tax adjustments, estate tax exemption updates, and EITC eligibility expansions. It stresses the importance of understanding progressive tax systems, planning tax strategy proactively, adjusting withholding to avoid overpaying, maximizing deductions, and consulting tax professionals. It also encourages investing through beginner-friendly platforms like Moomoo and saving in high-yield accounts to grow wealth. The presenter targets average Americans and beginners, focusing on practical, actionable steps to save thousands and build financial literacy.