A List of Important Tax Act Legislation
📅 2026 Update: The Newest Tax Law on the List
This section was added in October 2026. The list below the line was written before the biggest tax law since 2017. Here is what changed. The original article follows below, unchanged.
📜 The One, Big, Beautiful Bill Act (2025)
Congress passed the One, Big, Beautiful Bill Act in the summer of 2025. It was signed on July 4, 2025 and became Public Law 119-21. The IRS now also calls the package the "Working Families Tax Cuts."
It is the most important addition to any list of tax acts since the Tax Cuts and Jobs Act. Many of the TCJA's individual rules were set to expire after 2025. This law made most of them permanent.
🔒 What it made permanent
- 📈 The seven tax rates. 10%, 12%, 22%, 24%, 32%, 35%, and 37% stay in place. The brackets keep adjusting for inflation each year.
- 🧾 A larger standard deduction. For 2025 it is $15,750 for single filers and $31,500 for married couples filing jointly. For 2026 it is $16,100 and $32,200.
- 👶 The bigger child tax credit. It rose to $2,200 per child for 2025 and now adjusts for inflation. For 2026, up to $1,700 of it is refundable.
🆕 What it added for 2025 through 2028
Four new deductions sit on a new form called Schedule 1-A. You can claim them even if you take the standard deduction.
- 💵 Up to $25,000 of qualified tips.
- ⏱️ Up to $12,500 of overtime premium pay ($25,000 joint).
- 🚗 Up to $10,000 of interest on a loan for a new qualified vehicle.
- 👵 An extra $6,000 for each person age 65 or older.
Each one phases out at higher incomes. Each one requires a Social Security number. Married couples must file jointly to claim them.
🏠 State and local taxes (SALT)
The TCJA capped the SALT deduction at $10,000. The new law raised the cap to $40,000 for 2025 ($20,000 if married filing separately). The cap grows 1 percent each year through 2029.
The higher cap shrinks for people with income above $500,000. It cannot drop below $10,000. In 2030 the cap is scheduled to return to $10,000.
❤️ Charitable giving starting in 2026
Starting with tax year 2026, people who do not itemize can deduct up to $1,000 of cash gifts to charity ($2,000 for joint filers). Gifts to donor-advised funds do not count.
People who itemize face a new floor. Only giving above 0.5 percent of adjusted gross income counts.
⚡ Credits it ended early
The new law cut short several energy credits created in 2022.
- 🔌 The new and used clean vehicle credits ended for vehicles acquired after September 30, 2025.
- 🏡 The energy efficient home improvement credit ended for property placed in service after December 31, 2025.
- ☀️ The residential clean energy credit (solar and similar) ended for spending after December 31, 2025.
📨 Reporting rules it changed
- The Form 1099-K threshold for payment apps went back to more than $20,000 and more than 200 transactions.
- The Form 1099-NEC and 1099-MISC threshold rose from $600 to $2,000 for payments made in 2026. It adjusts for inflation after that.
💡 Practical Tips for Keeping Up With New Tax Laws
These tips are general information, not legal or tax advice. Tax law has many exceptions. A licensed tax professional can apply it to your facts.
🗓️ Check the effective date first
A law passed in one year often changes taxes in a different year. The charitable deduction for non-itemizers passed in 2025 but starts in 2026. The clean vehicle credit cutoff turned on the date you signed a contract and paid, not the date you drove the car home.
Before you act on a headline, find the tax year the rule applies to.
🔎 Go to the source
The IRS posts plain-language pages for each major law. Search IRS.gov for "Working Families Tax Cuts" to find the official summary.
News stories often round numbers or skip phase-outs. The IRS page will list the income limits.
⏳ Watch for end dates
Many 2025 changes are temporary. The four Schedule 1-A deductions end after 2028. The higher SALT cap ends after 2029.
Plan big moves, like timing a car purchase or a large donation, with those end dates in mind.
🧮 Re-check your withholding
New deductions can lower the tax you owe for the year. If your paycheck withholding does not change, you may get a bigger refund. That is money you could have had all year.
The IRS Tax Withholding Estimator was updated in March 2026 for the new law. It takes about 25 minutes and does not require a login.
🧑💼 Know when to get help
You may want a professional if you have overtime and tips, own a business, itemize, or bought an electric car near the cutoff. These are the areas with the most new rules.
🏆 Tax Prep Help for the New Law, Ranked by User Reviews (2026)
A big new law means more people want a second set of eyes. The list below ranks tax prep options by public user reviews, mainly Trustpilot. Scores were checked in October 2026 and will change.
This is not a recommendation. Review scores reflect the people who chose to post. Small samples can swing widely. Read each note.
🥇 1. TaxSlayer
TaxSlayer has been rated 4.2 out of 5 on Trustpilot across roughly 31,000 reviews. That is one of the largest positive review bases in tax software.
It has been known for a lower-priced self-employed tier that includes access to a tax pro. Reviewers mention easy prior-year import. Complaints focus on state fees and late pricing.
🥈 2. Keeper
Keeper has been rated 4.8 out of 5 on Trustpilot across about 320 reviews. The sample is smaller, and the company pays for a Trustpilot subscription and invites reviews.
It is built for freelancers and the self-employed. It tracks expenses all year, and every return is reviewed and signed by an in-house tax professional. Some reviewers say it feels limited for very complex returns.
🥉 3. TaxAct
TaxAct has been rated 4.0 out of 5 on Trustpilot across roughly 2,400 reviews. Reviewers praise its step-by-step guidance.
It is one of the few online tools that also prepares S-corporation and partnership returns. Complaints center on fees shown near the end.
4. Taxfyle
Taxfyle has been rated about 3.2 out of 5 on Trustpilot across roughly 80 reviews. The sample is small.
It connects you with a licensed preparer who does the return for you. Reviews are mixed on response times.
5. Jackson Hewitt
Jackson Hewitt has been rated 2.9 out of 5 on Trustpilot across about 260 reviews. Reviews split sharply: roughly half five-star and half one-star.
It is known for in-person preparers, including many locations inside Walmart stores. Praise centers on individual preparers. Complaints focus on fees higher than expected.
6. H&R Block
H&R Block has been rated 1.3 out of 5 on Trustpilot across roughly 1,400 reviews. That score is low.
Its strength is reach. It has the largest network of physical offices in the country, plus online and hybrid options.
🆓 Free option: VITA and TCE
The IRS Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs offer free help from IRS-certified volunteers. They generally serve people with moderate income, people with disabilities, limited English speakers, and seniors. Search "VITA locator" on IRS.gov.
🔎 Matching Help to the New Law
New laws mean new questions. Think about which changes touch you:
- 💵 Tips or overtime? Make sure your option supports Schedule 1-A.
- 👵 65 or older? Check that the extra $6,000 senior deduction is applied.
- 🏠 Itemizing in a high-tax state? Make sure the $40,000 SALT cap and its phase-down are handled.
- 💼 Self-employed? Look for expense tracking and help with estimated payments.
❓ Frequently Asked Questions
What is the newest major federal tax law?
The One, Big, Beautiful Bill Act, Public Law 119-21, signed July 4, 2025. It made most of the 2017 TCJA individual rules permanent and added new deductions.
Did the 2017 tax cuts expire?
Most individual provisions were set to expire after 2025. The 2025 law made the rates, the larger standard deduction, and the bigger child tax credit permanent.
Are the tip and overtime deductions permanent?
No. They apply to tax years 2025 through 2028 unless Congress extends them.
Can I still get a tax credit for an electric car?
Not for a vehicle acquired after September 30, 2025. A vehicle counts as acquired once a binding contract is signed and a payment is made.
Where can I read the official summary?
On IRS.gov, search for "Working Families Tax Cuts." The IRS lists each provision with its dates and income limits.
ℹ️ Disclosure
LAWS.com may receive compensation when readers use links to some of the services listed on this page. Compensation does not affect the order of the list above. Rankings are based on public user review data as of the date shown. This article is general information and is not legal, tax, or financial advice.
End of October 2026 Update
Introduction
Tax laws and acts can be difficult to navigate for many people, regardless of their profession or experience. Understanding the various tax acts is crucial for individuals and businesses to keep an accurate record of income and expenses while staying compliant with local and federal tax laws. Here, we provide a list of essential tax acts that you should be aware of.
1. Tax Cuts and Jobs Act (TCJA)
The Tax Cuts and Jobs Act was passed in 2017 and is considered the most substantial tax reform law in decades. The act made significant changes to tax rates, standard deductions, and itemized deductions for both individuals and businesses. It also included the largest corporate tax cut in US history.
2. Affordable Care Act
Also known as Obamacare, the Affordable Care Act requires individuals to have health insurance or pay a penalty. Additionally, businesses with 50 or more employees must offer affordable health insurance options to their employees. The act also includes tax credits for insurance premiums for low and middle-income individuals.
3. Taxpayer First Act
The Taxpayer First Act was passed in 2019 to improve accountability and transparency within the Internal Revenue Service (IRS). The act aims to modernize the IRS's technology, protect taxpayer rights, and increase transparency in tax return audits.
4. Foreign Account Tax Compliance Act (FATCA)
The Foreign Account Tax Compliance Act, passed in 2010, requires US citizens and residents who hold foreign financial assets with a total value of more than $50,000 to report their assets to the IRS. Financial institutions worldwide are also required to disclose information about US account holders to the IRS.
5. Tax Increase Prevention and Reconciliation Act (TIPRA)
The Tax Increase Prevention and Reconciliation Act was passed in 2005, extending several tax provisions such as the alternative minimum tax patch and the research and development tax credit. It also introduced new tax provisions such as the reduced tax rates on capital gains and dividends.
Conclusion
Understanding the various tax acts can be critical in managing finances and maintaining compliance with tax laws. The Tax Cuts and Jobs Act, Affordable Care Act, Taxpayer First Act, Foreign Account Tax Compliance Act, and Tax Increase Prevention and Reconciliation Act are some of the essential tax acts that individuals and businesses should be aware of and follow to avoid any legal consequences. Keep up to date with these acts to ensure that your tax-related activities are within the bounds of the law.
Understanding Taxes
Taxes are classified as payments required by individual citizens that may be incurred in tandem with financial, commercial, employment, and consumer activity. Within a society that required its residents and citizens to satisfy required tax payments, taxes may be fulfilled through a variety of facilities, in addition to variety of means of payment.
This being said, taxes can range in their collection process, procedure of payment, and applicable rates; while certain taxes may be required by the entire populace, other Taxes may be required by a specific group of individuals.
What is a Tax Act?
Within the legal realm of taxation, various tax-based legislative statutes – also known as a ‘tax act’ have been instated; a tax act may vary with regard to any or all applicable locations, countries, nations, districts, and municipality.
Within areas in which sovereign, locational entities exist, such as the United States of America, individual sovereign entities – in the form of individual states or regions – may be permitted to not only institute, but regulate an individual tax act. Conversely, a national tax act may be passed, which may result in the required adherence to implied legislation with regard to a country or nation its entirety; the following are some examples of influential tax acts that have been passed:
Federal Unemployment Tax Act (1939)
In conjunction with economic turmoil taking place within the Great Depression, President Franklin Delano Roosevelt formed federal committees providing financial support and restitution with regard to individuals unable to find employment; refusal in lieu of inability to work would deem a prospective recipient to be ineligible.
Tax Relief Act (1997)
The passing of this tax act allowed for the number of individuals permitted to invest in their respective retirement accounts – standard individual retirement accounts are commonly referred to as ‘IRAs’; as a result, the notion of a Roth IRA account were created that lessen applicable estate taxes with regard to larger initial investments.
Hope Credit Tax Act (1997)
The passing of this tax act may allow eligible students enrolled in collegiate degree programs to receive tax credits with regard to the financing of their respective education; this tax act allows for the tax relief to be undertaken by a spouse, parent, or additional dependent.
An Additional Meaning of TaxACT
TaxACT may also refer to the tax preparation service that shares the same name.TaxACT is electronic tax filing software owned by the Intuit Company that may be facilitated by its users in order to prepare their respective income tax reports:
TaxACT operates with regard to a multitude of functions, ranging from the preparation of income tax withholding reports to calculations of individual tax returns;Tax ACT is fashioned as a ‘field-input’ program, in which users are prompted to input applicable figures and information in order to finalize the calculation of their respective income tax reports
E-File is an online-based tax preparation system that operates through the usage of the Internet, which does not require the user to purchase any additional software; TaxACT offers the opportunity for individuals to utilize online-based tax filing methodology.