The IRS is implementing several rule changes for the 2026 tax year, impacting standard deductions, senior tax benefits, and new credits for tips and overtime. Standard deductions are increasing significantly for individuals and joint filers. Taxpayers aged 65 and older may receive an additional deduction. New provisions aim to offer tax relief on tips and overtime pay, though some regions may opt out. Additionally, a survey indicates a majority of Americans are using tax refunds for essential expenses like rent and groceries.