These 2026 Tax Tips Will Help You Build Wealth

Summary

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Podcast Summary: The Ramsey Show Highlights

Episode: These 2026 Tax Tips Will Help You Build Wealth
Date: February 20, 2026
Hosts: George Kamel & Jade Warshaw (Ramsey Network)

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Episode Overview

This episode is a rapid-fire guide to the major changes and tips for the 2026 tax season, focusing on how inflation-adjusted brackets, standard deduction increases, and new tax law features can help listeners build wealth and keep more of their earnings. George and Jade break down what’s changed, clear up common misconceptions, and offer actionable, practical advice for smart tax planning, all with their signature friendly, "nerdy" banter.

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Key Discussion Points & Insights

1. 2026 Tax Bracket Changes and Inflation Adjustments

• Marginal Rates Stay the Same: 10% to 37% brackets are unchanged, but thresholds have increased to account for inflation.

  • "Tax rates for the brackets stay the same. The income thresh have increased." – George (00:18)

• Misconception on Tax Brackets: Moving into a new bracket only affects dollars above the threshold, not all income.

  • "Only that new dollar is taxed at the new rate. So you got to understand that." – George (00:48)

• Breakdown of 2026 Brackets:

  • 10%: Up to $12,400 (single), $24,800 (married filing jointly)
  • 12%: Singles up to $50,400; married up to $100,800
  • 22%: Singles $50,401–$105,700; married $100,801–$211,400
  • 37%: Income over $640,600 (single), $768,700 (married filing jointly)

• Effective vs. Marginal Rate: Most pay a lower effective tax rate than their highest bracket.

  • "When you average it all out, it was really 15% is what you paid on your total income." – George (01:55)

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2. Standard Deduction Increases

• Higher Deductions in 2026: Most will benefit from the standard deduction.

  • "Standard deduction lowers your taxable income and is now higher again for 2026, which is good news." – George (02:16)

• Standard Deduction Amounts:

  • Single: $16,100
  • Married Filing Jointly: $32,200
  • Head of Household: $24,150

• Strategy Tip: For most, itemizing will not beat the higher standard deduction.

  • "For all of you, saving up every single receipt, thinking that maybe you can outdo it, you're probably not good." – Jade (02:43)

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3. Key New Rules from the “One Big Beautiful Bill Act”

• Tip Income: Most tips are no longer taxed, benefiting service workers.

  • "No tax on most tips, which is a first for many workers." – George (03:45)

• Overtime Pay Deduction: New deduction for hourly workers who do overtime.

• Senior Deduction: $6,000 deduction for taxpayers age 65+ (income-limited).

  • "A new $6,000 deduction available whether you go standard or itemized. For taxpayers age 65 plus, subject to income limits." – George (03:53)

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4. Practical Tax Prep and Filing Tips

• Documentation: Gather documents—W2s, 1099s, receipts—early to avoid scrambling.

  • "Start gathering that stuff now, put it in a folder because they're going to need it." – Jade (04:24)

• Decide How to File: DIY if simple, hire a pro for complex returns (e.g., business owners, self-employed).

• File Extension vs. Paying: Filing an extension is fine, but you must pay taxes owed by April 15th.

  • "It's illegal to not pay in time. It's not illegal to file the extension." – George (04:58)

• Tax Planning: Check with a tax pro each year to improve and lower next year’s tax bill.

  • "I always ask my tax guy, hey, what can I do better next year?" – George (05:14)

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5. Mindset & Proactive Planning

• Higher Deductions = Lower Tax Burden: Adjusted brackets and higher deductions can help, but deadlines and planning are what protect your wealth.

  • "Be proactive to keep more of your income and avoid stress." – George (05:14)

• Refunds Aren’t Giveaways: A big tax refund means you overpaid—do what you can to reduce this.

  • "If you get a refund this year, just know you overpaid the government as a blessing to them." – George (05:40)

• Intentionality Beats Loopholes: Good tax planning is about being deliberate, not chasing every loophole.

  • "Good tax planning isn't about the loopholes... it's about being intentional." – Jade (05:30)

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Notable Quotes & Memorable Moments

• "Yes, paying taxes sucks, but making money is always going to feel nicer." – Jade (01:45)
• "He hits the age, but not the income." – George joking about Dave Ramsey and the seniors’ deduction (04:19)
• "That was very, very nerdy. That might be the nerdiest we've ever gotten." – Jade (06:08)
• "Use that at your next trivia night." – George (06:12)

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Important Timestamps

• 00:18 – Tax brackets & common myths explained
• 01:55 – Effective vs. marginal tax rate
• 02:16 – Standard deduction increases for 2026
• 03:45 – Key rule changes under the new tax bill (tips, overtime, senior deduction)
• 04:24 – Prepping for tax season (documents, extensions, hiring pros)
• 05:14 – Importance of proactive tax planning
• 05:30 – Why intentionality in tax strategy matters
• 06:08 – Wrap-up and closing encouragement

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Final Takeaway

The hosts urge listeners to get informed, plan early, and take advantage of new deductions and bracket changes while being intentional about their financial decisions. Their key message: Smart tax planning starts now—not April 14th. And never be afraid to ask a tax pro how to improve for next year!

For deeper resources or professional help, they steer listeners to RamseySolutions.com/taxes.

Transcript

[A]

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[B]

All right, tax time 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.

[A]

It is. The big highlights are tax brackets have been adjusted for inflation and tax rates stay the same. That's 10 to 37. So those tax rates for the brackets stay the same. The income thresh have increased.

[B]

If you're watching on tell me more.

[A]

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

[B]

Yeah. And I'm like, yeah, I'm assuming the wrong thing.

[A]

Only that new dollar is taxed at the new rate. So you got to understand that. So let me go over the the numbers. So 10% bracket is up to 12,400 if you're single, 24,800 if you're married filing jointly, 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?

[B]

I, I, 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.

[A]

Yes. So you need to think about what the marginal tax rate is versus effective. So effective meaning, 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.

[B]

What about standard deduction increases? George?

[A]

Don't get me started. Come on, come on, wind it up.

[B]

Let's go.

[A]

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.

[B]

That ain't bad.

[A]

And head of household, 24,150.

[B]

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

[A]

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[B]

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?

[A]

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

[B]

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

[A]

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.

[B]

Okay. Do you know what those are?

[A]

Dave Ramsey. Sorry.

[B]

Yeah. You ain't getting it.

[A]

He hits the age, but not the income.

[B]

Not the income.

[A]

That's okay.

[B]

He'll. He'll be fine.

[A]

He will survive.

[B]

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.

[A]

Yes. Don't get it. 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?

[B]

That's right.

[A]

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 and 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.

[B]

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

[A]

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.

[B]

That's right.

[A]

That's what you're referring to.

[B]

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 Ramsey Solutions.com taxes that's Ramsey Solutions.com taxes All right, George, we did it.

[A]

I feel good.

[B]

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

[A]

No insults, no injuries. We all learned something. Use that at your next trivia night. Create your free every dollar budget today. The simplest way to budget for your life.