Trump tax plan 2026: What’s changing and why scammers are paying attention
Major tax changes are coming in 2026, and they could affect everything from your standard deduction to the size of your refund.
On July 4, 2025, a major tax overhaul called the One Big Beautiful Bill Act (OBBBA) became law. The legislation permanently extended many provisions of the 2017 Tax Cuts and Jobs Act (TCJA) while introducing new deductions and savings programs.1
For many taxpayers, the law locks in:
- Lower tax rates
- A higher standard deduction
- Expanded child tax credits
- New deductions for tips, overtime pay, and seniors
But the 2026 tax law changes don’t just affect your return. They also create the perfect opportunity for scammers.
Whenever tax rules change, criminals move quickly to take advantage of confusion. New deductions and credits give scammers new stories to spin—whether it’s a fake IRS call, a phishing email about a “new refund,” or a message claiming you need to verify your tax information.
And the numbers show the problem is growing:
- Tax scams resulted in $5,742,463.91 in reported financial losses (2025 YTD).2
- Government impersonation scams alone caused $789 million in losses.3
- The IRS Criminal Investigation identified $4.5 billion in tax fraud during 2025.4
Run a quick dark web scan of your email address with OmniWatch to see if your personal data may have been involved in a breach.
Run a free scan →Understanding the 2026 tax changes can help you prepare your return—and avoid the scams that often follow.
- The 2025 One Big Beautiful Bill Act made most TCJA tax cuts permanent.
- The 2026 standard deduction is $16,100 for single filers and $32,200 for married couples filing jointly.5
- Major tax policy changes often lead to spikes in IRS impersonation scams, refund fraud, and identity theft.
- Protecting your Social Security number, tax documents, and financial accounts is especially important during policy transitions.
What is the Trump tax plan for 2026?
The current tax system for 2026 largely keeps the structure created by the 2017 Tax Cuts and Jobs Act, while adding several new deductions and adjustments.
Here are the most important changes taxpayers should know before filing this year.
A higher standard deduction for 2026
For the 2026 tax year, the standard deduction is:
These figures reflect inflation adjustments and the permanent extension of the TCJA deduction structure. Without that extension, the deduction would have dropped dramatically (roughly $8,350 for single filers and $16,700 for married couples).5
Because about 90% of taxpayers claim the standard deduction, these changes affect most households.6
Federal tax rates stay the same
The federal income tax system continues to use seven tax brackets, with marginal rates ranging from 10% to 37% depending on income.1
2026 federal tax brackets (Single filers)
2026 federal tax brackets (Married filing jointly)
SALT deduction cap increased
The state and local tax (SALT) deduction cap increased significantly:
- Previous cap: $10,000
- New cap: About $40,000 in 20267
Important details:
- Phases out for incomes above $500,000
- Cannot drop below $10,000
- Scheduled to revert to $10,000 in 2030
Because only about 10% of taxpayers itemize deductions, this change primarily benefits higher-income households in high-tax states.6
Child Tax Credit increases
The Child Tax Credit increased to $2,200 per qualifying child and is now indexed to inflation.1 Without the TCJA extension, the credit would have dropped to $1,000 per child.
Here’s what to know:
- Refundable portion: $1,700
- Phaseouts begin at:
- $200,000 for single filers
- $400,000 for joint filers
New senior deduction
The law also introduced a $6,000 deduction for taxpayers ages 65 and older. However, this deduction is temporary and will expire after 2028.8
Key details:
- Applies per eligible taxpayer
- Married couples may claim up to $12,000
- Phases out above $75,000 (single) or $150,000 (joint)
New deductions for tips and overtime
The law also introduced new deductions for certain workers.8
Overtime deduction:
- Up to $12,500 annually
- Up to $25,000 for joint filers
Tip income deduction:
- Up to $25,000 in qualified tip income through 2028
Why tax law changes trigger scam surges
Tax law changes don’t just affect deductions. They also create the exact conditions scammers rely on: confusion, urgency, and financial anxiety.
When new tax benefits appear, scammers design messages that sound connected to the latest policy changes. They may sound like:
- You qualify for a new tax credit
- Your refund needs verification
- You owe taxes under updated IRS rules
The real aim behind these schemes is to trick you into handing over your sensitive details—like your Social Security number, bank account, or login credentials. With just a few key pieces of information, a scammer can steal your identity, open credit cards in your name, drain your accounts, or file fraudulent tax returns. That’s why it’s so important to stay skeptical of anyone asking for personal data, especially during tax season.
OmniWatch tip: The IRS will not contact you through unexpected calls, emails, or text messages asking for personal information. It generally initiates contact through mailed letters.
The most common tax scams during policy changes
Whenever tax rules change, several types of scams tend to appear more frequently. Knowing how these schemes work can help you spot them early.
IRS impersonation scams
One of the most common tax scams involves criminals pretending to represent the IRS.
Victims may receive a phone call from someone claiming to be an IRS agent. The caller may claim your tax return has an issue, or that you owe a penalty under new tax rules. The call will often sound urgent, and the scammer might threaten legal action or claim law enforcement will become involved if payment isn’t made immediately. They may demand money through gift cards, cryptocurrency, or wire transfers.
But in reality, real IRS agents do not demand immediate payment over the phone, nor will they ever request payment using gift cards or cryptocurrency.
Refund identity theft
Tax refund fraud is another major risk during filing season. In this scheme, a criminal files a tax return using someone else’s Social Security number before the real taxpayer submits their return.
The process usually looks like this:
- Criminals obtain sensitive information from a data breach or phishing scam
- They file a fraudulent tax return using a stolen Social Security number
- The refund is sent to the criminal
Victims usually discover the fraud only when their real tax return is rejected. This is one reason why filing early can help reduce your risk of identity theft and refund fraud.
Phishing emails and fake refund websites
Some tax scams begin with a message that looks like it came from the IRS. Victims may receive an email or text with a link to a website that appears official. These sites often mimic IRS login pages and may request information such as:
- Social Security numbers
- Bank account details
- IRS account credentials
Once entered, the information can be used to file fraudulent returns or open financial accounts in the victim’s name.
AI-powered IRS scams
Scammers are increasingly using artificial intelligence to make tax scams more convincing.
Examples include:
- Voice-cloned “IRS agents” calling victims
- Personalized phishing emails
- Fake tax documents shared through cloud links
These attacks may reference real tax programs or current legislation, making them appear more credible. Because of this, scams can sometimes look—and sound—remarkably convincing.
Tax scams often start with phishing emails or fake IRS websites. OmniWatch helps detect fraudulent sites so you don’t expose your sensitive data.
Protect against tax scams →How to protect yourself during the 2026 tax season
Tax season already requires sharing sensitive financial information. When tax laws change, staying cautious becomes even more important.
If you want a deeper checklist, see our guide on 15 smart ways to prevent identity theft this tax season.
Here are a few of the most important steps to reduce your risk.
Verify IRS communication
The IRS typically contacts taxpayers through official mailed notices, not unexpected phone calls or texts. If you receive a suspicious message claiming to be from the IRS, don’t respond. Instead, visit official IRS sites.
Avoid clicking tax refund links
Never click links claiming to verify your refund or confirm tax credits; odds are it’s a phishing attempt. Instead, log into your IRS account directly through the official website.
Use an IRS IP PIN
An Identity Protection PIN (IP PIN) is a six-digit number that prevents criminals from filing a tax return using your Social Security number.
Monitor your credit and identity
Unexpected credit inquiries or new accounts could be early warning signs of identity theft. Reviewing your credit reports—or using automatic credit monitoring—regularly can help you catch suspicious activity before it causes serious financial damage.
Monitor dark web exposure
Stolen personal data often circulates online long before victims realize it.
Services like OmniWatch continuously scan for exposed personal information, suspicious credit activity, and emerging fraud signals—helping you detect threats before they escalate.
Tax identity theft can continue long after filing season ends. OmniWatch monitors your identity, credit activity, and potential fraud signals so you can catch problems early.
Explore identity protection →What to do if someone files taxes in your name
If you discover a fraudulent tax return was filed using your identity, taking action quickly is important.
Start with these steps:
- File IRS Form 14039 (Identity Theft Affidavit)
- Place a fraud alert or credit freeze with one of the three credit bureaus (Experian, Equifax, and TransUnion)
- Monitor financial accounts closely
- Continue monitoring identity exposure
Unfortunately, tax identity theft cases can take months (or even years) to fully resolve. And once your personal information is exposed, criminals may attempt additional fraud in the future. Ongoing monitoring can help detect those threats early.
What taxpayers should know before filing in 2026
Tax law changes can affect how much you owe, what deductions you qualify for, and how large your refund may be. But they also create something else: new opportunities for scammers.
Whenever new credits, deductions, or filing rules appear, scammers take advantage of uncertainty. Fraudsters craft emails, phone calls, and websites that sound legitimate because they reference real tax policies and deadlines.
For taxpayers, that means staying informed is only part of the solution. Protecting your identity and financial information is just as important.
Before filing your return this year:
- Verify unexpected tax messages
- File early when possible
- Monitor your credit and personal information
- Watch for signs of identity theft
Tax season comes around every year. Taking a few extra precautions now can help ensure your refund goes where it belongs: to you.
Frequently Asked Questions
Q: Will the Trump tax plan increase my taxes in 2026?
A: For most taxpayers, the 2026 tax rules keep many of the lower tax rates introduced under the 2017 Tax Cuts and Jobs Act in place. The One Big Beautiful Bill Act extended those provisions and adjusted several deductions for inflation. That means many households will see similar tax rates to recent years, rather than a sudden increase.
However, the exact impact on your taxes will depend on your income, deductions, and filing status.
Q: Will my refund change in 2026?
A: It’s possible. Refund amounts depend on several factors, including your income, tax credits and deductions, and how much tax was withheld during the year.
Because the 2026 tax rules adjust deductions and credits, some taxpayers may see refunds increase while others may see smaller refunds. The safest approach is to review your withholding and file as early as possible.
Q: Will tax changes increase IRS audits?
A: Not necessarily.
Tax law changes themselves do not automatically increase IRS audits. Most audits are triggered by discrepancies in tax filings, unusually large deductions, or mismatches between reported income and information reported by employers or financial institutions.
That being said, major tax changes can create confusion, which scammers sometimes exploit. Fraudsters may send messages claiming you are being audited or that your return must be verified under new tax rules. But don’t be fooled: The IRS won’t contact you for payment through unexpected emails or text messages. Instead, look for official mailed notices concerning potential audits.
Q: Can someone steal my tax refund?
A: Yes, and it happens more often than many people realize.
Tax refund fraud occurs when a criminal files a tax return using a stolen Social Security number before the legitimate taxpayer files. The scammer claims the refund and has it sent to their own account.
Victims often don’t realize what has happened until after the IRS rejects their real tax return. Filing early and investing in identity protection can help reduce your overall risk.
Q: How do I know if someone used my Social Security number?
A: Some of the most common warning signs include:
- Your tax return is rejected because a return was already filed
- You receive an unexpected IRS notice about a tax return you didn’t submit
- You receive W-2 or tax documents from an employer you never worked for
- New financial accounts appear on your credit report
If any of these occur, contact the IRS immediately and consider filing an Identity Theft Affidavit (Form 14039).
Q: What should I do if I receive a suspicious message from the IRS?
A: Treat it as suspicious until proven otherwise. The IRS typically does not contact taxpayers through unsolicited phone calls, emails, or text messages asking for payment.
If you receive a message claiming to be from the IRS, do not click links or share any personal information. Visit the official website directly.
1 Tax Foundation, “2026 Tax Brackets and Federal Income Tax Rates” 2 Kaplan Collection Agency, “Tax Scam Report 2025: 62% Increase in Cases Reveals New Risk Hotspots” 3 Federal Trade Commission, “New FTC Data Show a Big Jump in Reported Losses to Fraud to $12.5 Billion in 2024” 4 Internal Revenue Service Criminal Investigation, “IRS-CI Issues Fiscal Year 2025 Annual Report Showcasing Banner Investigative Results” 5 Internal Revenue Service, “IRS Releases Tax Inflation Adjustments for Tax Year 2026 Including Amendments from the One Big Beautiful Bill” 6 Tax Policy Center, “What Are Itemized Deductions and Who Claims Them?” 7 GuideStone Financial Resources, “One Big Beautiful Bill Act Overview” 8 Internal Revenue Service, “One Big Beautiful Bill Act: Tax Deductions for Working Americans and Seniors”