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Child Tax Credit 2026 — Income Limits, Refundability, and How to Claim It

The Child Tax Credit (CTC) is one of the most valuable federal tax benefits available to American families. For the 2026 tax year, the credit stands at $2,200 per qualifying child under age 17 — a meaningful reduction that applies directly against your tax bill, dollar for dollar. Unlike a deduction, which merely reduces your taxable income, a credit reduces the actual tax you owe. The CTC also includes a partially refundable component: the Additional Child Tax Credit (ACTC), which allows families with limited tax liability to receive up to $1,700 per qualifying child as a direct refund. This refundable portion is particularly significant for lower- and middle-income families who might not owe enough in federal taxes to fully use the nonrefundable credit. Navigating the CTC's income phase-outs, qualifying child rules, and interaction with other credits like the Earned Income Tax Credit requires careful attention. This guide breaks down the 2026 rules so you can determine exactly how much you qualify for and how to claim the full credit on your return. For context on how the CTC fits into your broader tax picture, see our guides on [Federal Tax Brackets for 2026](/article/federal-tax-brackets-for-2026-rates-income-thresholds-and-filing-strategies) and [Standard Deduction 2026](/taxes).

child tax creditctcdependent

Tax-Loss Harvesting Guide — Offset Capital Gains and Cut Your Tax Bill

Tax-loss harvesting is one of the most effective legal strategies available to investors for reducing their tax liability. The concept is simple: sell investments that have declined in value to realize losses, then use those losses to offset capital gains and up to $3,000 of ordinary income per year. Any unused losses carry forward indefinitely until fully utilized. The strategy has become increasingly accessible as major brokerages — including Schwab, Fidelity, and Vanguard — have automated harvesting features in their platforms, and commission-free trading has eliminated the transaction cost barrier. With the 10-year Treasury yield hovering around 4.02% and the Federal Reserve's rate cuts reshaping fixed-income returns, many investors are sitting on a mix of gains and losses across their portfolios that creates prime harvesting opportunities. But tax-loss harvesting is not as simple as selling losers and calling it a day. The IRS wash-sale rule, the distinction between short-term and long-term losses, and the interaction with your overall [capital gains tax](/article/capital-gains-tax-explained-short-term-vs-long-term-rates-and-how-to-minimize-your-tax-bill) bracket all determine whether harvesting actually saves you money. This guide covers the mechanics, the rules, and the practical strategies that make harvesting worthwhile.

tax-loss harvestingtax lossharvesting

Standard Deduction 2026 — Filing Status Thresholds and When to Itemize

The standard deduction is the single most impactful line item on most Americans' tax returns. For the 2026 tax year, the IRS has raised the standard deduction to $16,100 for single filers and $32,200 for married couples filing jointly — increases driven by cumulative inflation adjustments under the Tax Cuts and Jobs Act framework. These higher thresholds mean that even more taxpayers will find the standard deduction more beneficial than itemizing. Understanding when to take the standard deduction versus itemizing is not just an academic exercise. The decision directly determines how much taxable income you report to the IRS, and getting it wrong in either direction costs real money. Roughly 90% of taxpayers currently claim the standard deduction, but that does not mean itemizing is never the better choice — particularly for homeowners with large mortgages, residents of high-tax states, or individuals with significant charitable giving. This guide breaks down the 2026 standard deduction amounts by filing status, explains the additional deductions available to taxpayers over 65 or those who are blind, and provides a practical framework for deciding whether to itemize. If you have already read our [Federal Tax Brackets for 2026](/article/federal-tax-brackets-for-2026-rates-income-thresholds-and-filing-strategies) guide, this article picks up where that one left off.

standard deduction 2026standard deductionitemized deductions

Capital Gains Tax Explained — Short-Term vs Long-Term Rates and How to Minimize Your Tax Bill

Every time you sell a stock, mutual fund, or piece of real estate for more than you paid, the IRS wants its share. Capital gains tax is one of the most consequential — and most misunderstood — levies facing American investors, and in 2026, the difference between short-term and long-term rates can mean paying anywhere from 0% to 37% on the same profit depending on how long you held the asset. With the S&P 500 trading near $686 and up roughly 42% from its 52-week low, millions of investors are sitting on unrealized gains heading into tax season. The Federal Reserve's rate-cutting cycle — the fed funds rate has fallen from 4.33% in August 2025 to 3.64% in January 2026 — has fueled equity appreciation, but it also means more Americans face capital gains decisions in their 2025 tax returns. Understanding how these rates work, when they apply, and how to legally minimize them is no longer optional for anyone with a brokerage account. This guide breaks down the 2026 capital gains tax structure, explains the critical distinction between short-term and long-term rates, and walks through proven strategies — from tax-loss harvesting to holding period optimization — that can meaningfully reduce what you owe.

capital gains taxcapital gainslong-term capital gains

Federal Tax Brackets for 2026 — Rates, Income Thresholds, and Filing Strategies

The IRS has finalized its inflation adjustments for the 2026 tax year, pushing income thresholds higher across all seven federal tax brackets. For millions of Americans preparing to file by the April 15, 2027 deadline, these changes mean slightly more income taxed at lower rates — a modest but meaningful shift in an environment where the consumer price index has climbed above 326 and the Federal Reserve has cut its benchmark rate to 3.64% from over 4.3% just six months ago. Understanding how marginal tax brackets actually work is one of the most important pieces of financial literacy for anyone earning income in the United States. The progressive tax system means that only the portion of your income that falls within each bracket is taxed at that rate — not your entire income. Yet surveys consistently show that a significant share of taxpayers misunderstand this fundamental concept, leading some to turn down raises or bonuses out of a mistaken belief they'll "move into a higher tax bracket" and take home less money. This guide breaks down every 2026 federal income tax bracket for all filing statuses, explains the updated standard deduction amounts, and walks through practical strategies to reduce your effective tax rate — from retirement account contributions to tax-loss harvesting.

tax brackets 2026federal income taxmarginal tax rate