Everything You Need to Know About Filing Taxes in 2026

Summary

Podcast Summary: Ramsey Everyday Millionaires

Episode: Everything You Need to Know About Filing Taxes in 2026
Date: March 2, 2026
Hosts: Ramsey Network (George Kamel & Jade Warshaw)

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Episode Overview

This episode dives into the key changes and tips for filing taxes in 2026, breaking down new tax brackets, standard deductions, and notable legislation like the “One Big Beautiful Bill Act.” Hosts George Kamel and Jade Warshaw clarify common misconceptions, share practical advice, and sprinkle in humor as they tackle what you need to know to make tax season less stressful and more strategic.

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Key Discussion Points & Insights

1. Important Tax Dates for 2026 (00:14)

• Tax Day: April 15, 2026
• Extension Deadline: October 15, 2026

2. 2026 Federal Tax Brackets – Adjusted for Inflation (00:40)

• Brackets have been adjusted upwards for inflation, but rates remain the same (10%–37%).
• Single Filers:
  • 10%: Up to $12,400
  • 12%: $12,401 – $50,400
  • 22%: $50,401 – $105,700
  • 37%: Over $640,600
• Married Filing Jointly:
  • 10%: Up to $24,800
  • 12%: $24,801 – $100,800
  • 22%: $100,801 – $211,400
  • 37%: Over $768,700
• Clarification: Moving into a higher bracket only taxes the new dollars at that bracket, not all income (“Only that new dollar is taxed at the new rate.” – George, 01:13).

3. Marginal vs. Effective Tax Rate (02:21)

• Marginal: Rate paid on the last dollar earned.
• Effective: Average rate paid over all income.
• Quote: “When you average it all out, it was really 15% is what you paid on your total income.” – George (02:21)

4. Standard Deduction Updates for 2026 (02:37)

• Single: $16,100
• Married Filing Jointly: $32,200
• Head of Household: $24,150
• “The IRS basically says, we didn’t see that money, it’s a freebie.” – George (02:42)
• Most taxpayers benefit more from standard deduction than itemizing.

5. When to Consider Itemized Deductions (03:09)

• Usually applies to business owners, those with complex finances, or specific circumstances.
• “If you’re a business owner, you got a very complex schedule C situation... check with a CPA or tax pro.” – Jade (03:18)

6. Legislative Updates: The ‘One Big Beautiful Bill Act’ (03:30)

• Tip Income: No tax on most tips
• Overtime Deduction: New overtime pay deduction for hourly workers
• Senior Deduction: Additional $6,000 deduction for taxpayers aged 65+, subject to income limits
• “For anyone that makes tips, you’re happy about this? No tax on most tips, which is a first for many workers.” – George (03:43)

7. Practical Tax Prep Tips (04:21)

• Gather tax documents (W-2s, 1099s, receipts) early
• Decide if you’re filing yourself or hiring a pro — complexity matters
• Extensions are for filing time, not payment — pay what you owe by April 15 (even if you file for an extension)
• “It’s illegal to not pay on time. It’s not illegal to file the extension.” – George (04:57)

8. Tax Planning Philosophy (05:11)

• Be proactive, consult your tax preparer for yearly improvements
• Higher deductions and inflation-adjusted brackets can lower your burden, but deadlines and good planning are still crucial
• “Good tax planning isn’t about the loopholes... it’s about being intentional.” – Jade (05:28)

9. Refund Misconceptions (05:38)

• Refunds mean you gave the IRS an interest-free loan; strive to optimize withholdings
• “If you get a refund this year, just know you overpaid the government as a blessing to them...” – George (05:38)
• Jade encourages listeners to put refunds toward their financial goals.

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Notable Quotes & Memorable Moments

• Misconceptions about Tax Brackets:
  “People say... I don’t want to make a dollar more because it’ll push me into the next bracket.” – Jade (01:07)
  “Only that new dollar is taxed at the new rate.” – George (01:13)

• On Standard Deduction:
  “The IRS basically says, we didn’t see that money, it’s a freebie.” – George (02:42)

• On Filing Extensions:
  “It’s illegal to not pay in time. It’s not illegal to file the extension.” – George (04:57)

• Big Picture Tax Planning:
  “Good tax planning isn’t about the loopholes... it’s about being intentional. You work really hard, don’t give more than you need to to the IRS.” – Jade (05:28)

• Tax Refunds Explained:
  “If you get a refund this year, just know you overpaid the government as a blessing to them, and they said, no, we can’t take that legally, you can have it back.” – George (05:38)

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Important Timestamps

• Tax Day and Extension Dates: 00:14
• New Tax Brackets Explained: 00:40 – 02:12
• Marginal vs. Effective Rates: 02:21
• Standard Deduction Updates: 02:37 – 03:09
• ‘One Big Beautiful Bill Act’ Provisions: 03:30 – 04:13
• Tax Prep Tips: 04:21 – 05:11
• General Tax Planning and Refund Myths: 05:28 – 06:14

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Tone & Style

• Lighthearted and approachable, with frequent banter
• “Talk Nerdy to Me” vibes — detailed but never dull
• Practical, actionable advice with an emphasis on clarity
• Occasional jokes and playful jabs (e.g., comments about Dave Ramsey)

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Closing Thoughts

This concise yet detailed episode arms listeners with the most essential tax updates for 2026, dispels persistent tax myths, and offers clear strategies for minimizing tax time headaches. Whether you’re a tax novice or just looking for a refresher, the Ramsey Network team delivers financial wisdom in a friendly, no-nonsense package.

Transcript

[A]

Foreign.

[B]

This episode is brought to you by SmartVestor. Connect with an investing pro near you at RamseySolutions.com SmartVestor all right, tax time

[A]

is just around the corner. 2026, taxes, don't worry. George and I have you covered with everything that you need to know. George, this feels like a. A talk nerdy to me segment.

[B]

That's the. We had to brand it so that people would listen in.

[A]

Yeah, so, so, so talk dirty to me about tax. This year is going to be April 15th. It's always April 15th, 2026. Extension deadline October 15th, 2026. Tell us everything we need to know.

[B]

Okay, this is the important parts. These are the changes for 2026. And the big highlights are tax brackets have been adjusted for inflation. Ooh. Ah. And tax rates stay the same. That's 10% to 37%. So those tax rates for the bracket stay the same. The income thresholds have. Have increased.

[A]

If you're watching on tell me more.

[B]

If you're watching on YouTube or Spotify, we have the visuals up so you can see the table. Because this is one of the most confusing things about taxes.

[A]

People get it twisted.

[B]

People say, well, Jade, I don't want to make a dollar more because it'll push me into the next bracket.

[A]

Yeah, I'm assuming the wrong thing.

[B]

Only that new dollar is taxed at the new rate. So you gotta understand that. So let me go over the numbers. So 10% bracket is up to 12,400 if you're single, 24,800 if you're married filing jointly. Then from that number up to 50,400 if you're single, 12% bracket, and for married filing jointly, $100,800. And then we move to the 22% bracket, which is from that 50 grand up to 105,700 if you're single, and up to 211,400 if you're married, filing jointly. If you're doing the math at home, it doubles for those married filing jointly. Keeps it simple. And then 37%, which is the highest bracket. Any money you make over $640,600 if you're single will be taxed at the 37%. And married filing jointly, any dollar you make over 768,700 will be taxed at 37%. Have you fallen asleep yet?

[A]

I wanted to, but I forced myself to stay awake in order to say the words, yes, paying taxes sucks, but making money is always going to feel nicer.

[B]

Yes. So you need to think about what the marginal tax rate is versus effective. So effective meaning you. Yes, you got up into that 22% tax rate, but when you average it all out, it was really 15% is what you paid on your total income. So there you go. That's the federal brackets with the adjusted thresholds.

[A]

What about standard deduction increases? George?

[B]

Don't get me started.

[A]

Come on, wind it up. Let's go.

[B]

So this is. Most people will benefit from taking the standard deduction. And so this is probably you, if you're listening. The standard deduction lowers your taxable income and is now higher again for 2026, which is good news. So standard deduction if you're single is $16,100. So the IRS basically says, we didn't see that money, it's a freebie. The rest we're going to touch, but that part we won't. Married, filing jointly, $32,200, that ain't bad. And head of household, 24,150.

[A]

So for all of you, saving up every single receipt, thinking that maybe you can outdo it, you're probably not going.

[B]

So unless you're. You're a business owner, you got a very complex schedule C situation. You're self employed. Some people are 1099. Sometimes it makes sense to itemize. And you can check with a CPA or tax pro on that.

[A]

Now, there's a lot surrounding the one Big Beautiful Bill Act. And I know people, I know one big beautiful Bill. There's a lot of questions around that. How's it going to affect us this tax term, George? What do you have to say about that?

[B]

So for anyone that makes tips, you're happy about this? No tax on most tips, which is a first for many workers.

[A]

I have to say. I think that's great.

[B]

They're hustling out there. Yeah, let them have it. And then you've got overtime pay deduction for hourly workers. So that's nice as well. If you do overtime and then senior shout out to the AARP members out there, you get a deduction. A new $6,000 deduction available whether you go standard or itemized. For taxpayers age 65 plus, subject to income limits.

[A]

Okay. Do you know what those are?

[B]

Dave Ramsey. Sorry.

[A]

Yeah. You ain't getting it.

[B]

He hits the age, but not the income.

[A]

Not the income. That's okay. He'll be fine.

[B]

He will survive.

[A]

All right, I love that. So just a couple of smart tax tips going forward. Make sure that you're gathering up your documents early, guys. Don't wait till the Last minute, you're going to need your W2s, your 1099s, any receipts. Start gathering that stuff now, put it in a folder, because they're going to need it. Also, you need to decide whether you're gonna do this thing yourself or whether you're going to hire a tax pro. Again, if it's simple, just your basic W2, you probably could handle it yourself. But if it's a little bit more complex, you're probably going to need a pro. If needed, make sure to file your extension. Okay, file the extension, but you still got to pay April 15th.

[B]

Yes.

[A]

Don't get it.

[B]

It's illegal to not pay in time. It's not illegal to file the extension. So it's okay if you don't file in time, file the extension, but you got to pay what you owe. And you can use tax planning to reduce surprises next year. I always ask my tax guy, hey, what can I do better next year?

[A]

That's right.

[B]

What are you seeing? I want to always improve and pay the government a little bit less if I can. And so the bottom line for 2026, higher deductions in inflation adjusted brackets may lower your tax burden, but deadlines and planning still matter. So be proactive to keep more of your income and avoid stress.

[A]

That's right. And George, good tax planning isn't about the loopholes, although we might confine you some of those. It's about being intentional. You work really hard, don't give more than you need to to the irs,

[B]

which is what a refund is, by the way. If you get a refund this year, just know you overpaid the government as a blessing to them, and they said, no, we can't take that legally, you can have it back.

[A]

That's right. That's what you're refunding. That's could be putting towards whatever baby step you're on. So take a closer look at that. But for any questions around how to file taxes, or if you need to work with one of our pros, go ahead and head to ramseysolutions.com taxes that's ramseysolutions.com taxes all right, George.

[B]

We did it.

[A]

I feel good. That was very, very nerdy. That might be the nerdiest we've ever gotten.

[B]

No insults, no injuries. We all learned something. Use that at your next trivia night.

[A]

Woo.