Generated by All in One SEO Pro v5.0.1.1, this is an llms-full.txt file, used by LLMs to index the site. # Saving to Invest Taxes, Refunds, Benefits & Retirement Limits ## Posts ### [How Your FICO Credit Score Actually Works in 2026 (and How to Raise It)](https://savingtoinvest.com/breaking-down-and-improving-your-fico/) **Published:** March 19, 2009 **Author:** Andy **Content:** ### Key Takeaways - Payment history (35%) and amounts owed (30%) still drive nearly two-thirds of your FICO Score - the other 35% splits between credit history length, new credit, and credit mix. - You no longer need to pay for your FICO Score - Discover, Experian, American Express, Capital One, and most major card issuers now offer it free. - FHFA eliminated the prior-approval requirement for VantageScore 4.0 entirely on September 9, 2026 (Fannie Mae LL-2026-06, Freddie Mac Bulletin 2026-H) - any approved lender can now use it immediately on GSE loans. - FICO 10T remains approved but isn't yet accepted for delivery to Fannie Mae or Freddie Mac - the GSEs published historical FICO 10T data on July 1, 2026 so lenders can evaluate it ahead of a future rollout. - Buy now, pay later plans are starting to show up on credit reports and can now affect your FICO Score, for better or worse depending on your payment record. The average FICO Score in the US just dipped to 714, the second straight year it’s fallen. At the same time, a record 48.1% of Americans now carry a score of 750 or higher. Credit is splitting into haves and have-nots, and where you land affects almost every rate you’re quoted, from a mortgage to a car loan to a new credit card. I wrote about this topic years ago when I was buying my first home, and the core mechanics haven’t changed much since. What has changed: how you check your score, what counts against you, and — as of this year — which scoring model your lender might actually be using. Covered in this Article: [Toggle](#) - [What Your FICO Score Actually Measures](#What_Your_FICO_Score_Actually_Measures) - [Credit Score Ranges: What Counts as Good in 2026](#Credit_Score_Ranges_What_Counts_as_Good_in_2026) - [How to Check Your FICO Score for Free](#How_to_Check_Your_FICO_Score_for_Free) - [What’s Changing in 2026: FICO 10T and VantageScore 4.0](#Whats_Changing_in_2026_FICO_10T_and_VantageScore_40) - [Where Medical Debt Stands on Your Credit Report](#Where_Medical_Debt_Stands_on_Your_Credit_Report) - [How I Actually Approach Improving a Score](#How_I_Actually_Approach_Improving_a_Score) - [Common Mistakes to Watch Out For](#Common_Mistakes_to_Watch_Out_For) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) ## What Your FICO Score Actually Measures FICO scores run from 300 to 850, calculated by the Fair Isaac Corporation from the data in your credit report. Lenders use it as the primary basis for approving loans and setting your interest rate, so a higher score generally means cheaper borrowing across the board. The formula breaks down into five weighted categories: - Payment history (35%) — whether you’ve paid your bills on time. This is the single biggest factor, worth roughly 300 points of your score. - Amounts owed (30%) — how much of your available credit you’re using. Maxing out cards hurts even if you pay on time. - Length of credit history (15%) — how long you’ve had accounts open and how recently you’ve used them. - New credit (10%) — how many accounts you’ve opened recently, and how many hard inquiries lenders have made. - Credit mix (10%) — whether you handle a mix of revolving debt (cards) and installment debt (auto loans, mortgages) responsibly. Your age, income, employment history, and where you live are not part of the FICO formula, even though a lender might ask about them separately when underwriting a loan. ## Credit Score Ranges: What Counts as Good in 2026 FICO groups scores into five tiers: RangeTier800–850Exceptional740–799Very Good670–739Good580–669Fair300–579Poor Above 780 or so, you’re getting the best rates most lenders offer. In the 670–739 range, you’ll qualify for most products but not always the top rate. Below 600, expect higher rates and, on some products, outright denials. ## How to Check Your FICO Score for Free This is the part that’s changed the most since I first wrote about this. You used to have to pay $15 or more for a FICO Score through myFICO.com. You don’t anymore. Discover, American Express, Capital One, Bank of America, and Wells Fargo all offer free FICO Score access to their cardholders now, and some — like Discover — will show you a FICO Score even if you’re not a cardmember. [Experian also offers](https://www.experian.com/credit/credit-score/) a free FICO Score 8 directly. Separately, [AnnualCreditReport.com](https://www.annualcreditreport.com/) — the only site authorized by federal law to provide your free credit reports — lets you pull your full report from Equifax, Experian, and TransUnion once a week, permanently, at no cost. That’s your credit report, not your FICO Score, but it’s the best place to check for errors and signs of identity theft. [Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates as credit scoring rules keep evolving. ## What’s Changing in 2026: FICO 10T and VantageScore 4.0 In April 2026, the Federal Housing Finance Agency (FHFA) and the Department of Housing and Urban Development (HUD) approved two newer scoring models — FICO 10T and VantageScore 4.0 — for use alongside classic FICO in mortgage underwriting through Fannie Mae and Freddie Mac. That approval took a decisive step forward on September 9, 2026, when FHFA Director Bill Pulte directed Fannie Mae and Freddie Mac to remove the prior-approval requirement for VantageScore 4.0 altogether. Under Fannie Mae’s Lender Letter LL-2026-06 and Freddie Mac’s Bulletin 2026-H, any approved lender can now use VantageScore 4.0 on eligible loans immediately, with no individual sign-off needed. That’s a meaningfully bigger step than the limited rollout that started in April — it’s no longer a growing list of pre-cleared lenders, it’s every approved lender by default. In practice, adoption is still concentrated in a handful of shops. As of August 2026, VantageScore 4.0 made up only about 5.6% of total GSE loan originations, and roughly 99% of that volume came from just two lenders — Rocket Mortgage and United Wholesale Mortgage. Most other approved lenders were still delivering little to no VantageScore 4.0 volume. That’s worth knowing if you’re shopping for a mortgage: the model is broadly allowed now, but whether your specific lender is actually using it yet is still a fair question to ask. FICO 10T hasn’t reached that stage yet. It’s approved in principle, but still isn’t accepted for actual delivery to Fannie Mae or Freddie Mac. The GSEs published historical FICO 10T credit score data on July 1, 2026, letting lenders and other market participants evaluate the model ahead of a future rollout — but there’s no confirmed date yet for when it becomes usable the way VantageScore 4.0 now is. FICO 10T adds “trended data,” looking at 24 months of credit behavior instead of a single snapshot. VantageScore 4.0 goes further and factors in on-time rent and utility payments, which can help renters with thin credit files who’ve never missed a payment but also never had a mortgage or auto loan. With VantageScore 4.0 now available to every approved lender, more mortgage applications are likely to actually run under it as adoption catches up to the rule change. If you’re planning to buy a home in the next year or two, it’s worth knowing your score under more than one model — a score that looks mediocre under classic FICO could look meaningfully better under VantageScore 4.0 if you’ve paid rent on time for years. It’s also worth simply asking your loan officer which model they’re pulling, since the rule change alone doesn’t guarantee your specific lender is using it yet. ## Where Medical Debt Stands on Your Credit Report A quick update here because this one’s had a bumpy year. The Consumer Financial Protection Bureau finalized a rule in 2024 that would have removed medical debt from credit reports entirely. A federal court vacated that rule in 2025, finding the CFPB exceeded its authority, so it’s no longer enforceable federally. That said, the voluntary changes Equifax, Experian, and TransUnion made back in 2023 are still in place: paid medical collections are removed regardless of size, unpaid medical collections under $500 don’t appear at all, and there’s a 12-month grace period before any medical debt shows up. About 15 states have also passed their own, separate protections on top of that. If a medical bill has already been sold to a collection agency, federal Regulation F limits how often they can call or text you about it — see my breakdown of [debt collection call limits and how to stop the harassment](https://savingtoinvest.com/handling-debt-collection-calls-and-creditor-harassment-by-knowing-your-rights/). ## How I Actually Approach Improving a Score Check your reports for errors first. Omissions and mistakes are more common than people expect, and disputing them (in writing, with documentation) forces the bureau to investigate within 30 days by law. Pay down revolving balances before closing the cards. Sarah, a reader example: she had $8,000 in card debt across three cards near their limits. Paying two down to zero — without closing them — dropped her utilization from 78% to 22% and moved her score up more than 60 points in about four months. Don’t over-open new credit. Mark wanted a lower mortgage rate, so he applied for two new cards and a personal loan in the same month “just in case.” Each hard inquiry and new account dinged his score right before the one application that mattered. Keep old accounts open. Owing the same amount across fewer open accounts can actually lower your score, since it shrinks your total available credit and shortens your average account age. Use a card at least occasionally. Advisors commonly recommend one small charge a year on a card you don’t use often, paid off immediately, just to keep it active. ## Common Mistakes to Watch Out For Assuming checking your own score hurts it. It doesn’t. Checking your own FICO Score or credit report is a “soft inquiry” and has no effect. Only inquiries from lenders you’ve applied with (hard inquiries) can ding you slightly. Rate-shopping incorrectly. Multiple inquiries for the same type of loan (auto, mortgage) within a short window — generally 14 to 45 days depending on the model — get counted as one inquiry. Spreading that shopping out over months does not get the same protection. Ignoring a thin file. No credit history isn’t the same as bad credit, but it can still get you denied. A secured card or becoming an authorized user on a family member’s older account can build history faster than starting from zero. Confusing your FICO Score with a “credit score” from a free app. Many free apps show a VantageScore, not a FICO Score. They’re correlated but not identical, and the number a lender pulls may differ from what you see on your phone. ## Looking Ahead: 2027 Outlook I’ll be watching how quickly lenders actually adopt VantageScore 4.0 now that the approval requirement is gone entirely, and how long it takes FICO 10T to move from “historical data published” to genuinely usable for GSE loan delivery — a full transition affecting most mortgage applications still isn’t expected until sometime in 2027. I’m also watching whether Congress or a new CFPB rule revisits medical debt reporting, and how buy now, pay later reporting standards shake out as more of those plans start appearing on credit files. For more on the borrowing side of this, I’ve also written about what it takes to [refinance a mortgage](https://savingtoinvest.com/should-i-refinance-my-mortgage-and-do-i-qualify/) and [rebuilding a poor credit score through a credit union loan](https://savingtoinvest.com/rebuild-a-poor-credit-score-using-a-credit-union/). Frequently Asked Questions QWhat is a good FICO credit score in 2026? AGenerally, 670 or above is considered 'good,' 740+ is 'very good,' and 800+ is 'exceptional.' The national average is currently 714. QHow is my FICO score calculated? AFive weighted factors: payment history (35%), amounts owed (30%), length of credit history (15%), new credit (10%), and credit mix (10%). QDo I have to pay to check my FICO Score? ANo. Discover, American Express, Capital One, Experian, and most major card issuers now offer free FICO Score access, whether or not you're a cardholder in some cases. QDoes checking my own credit score lower it? ANo. Checking your own score or report is a soft inquiry and has no impact. Only hard inquiries from lenders you've applied with can affect your score, and only slightly. QWhat are FICO 10T and VantageScore 4.0, and which one is actually in use for mortgages right now? ABoth are newer credit scoring models approved by FHFA and HUD in April 2026 for mortgage underwriting alongside classic FICO. VantageScore 4.0 is the one actually usable today - on September 9, 2026, FHFA removed the prior-approval requirement entirely, so any Fannie Mae- or Freddie Mac-approved lender can use it immediately, no individual sign-off needed. Actual adoption still lags the rule change, though: as of August 2026, VantageScore 4.0 accounted for only about 5.6% of GSE loan volume, with Rocket Mortgage and United Wholesale Mortgage delivering nearly all of it. FICO 10T is still approved only in principle; the GSEs published historical FICO 10T data in July 2026 for lenders to evaluate, but it isn't yet accepted for actual loan delivery. QIs medical debt still on credit reports in 2026? AIt can be, but with real limits. The CFPB's 2025 rule banning medical debt from credit reports was vacated by a federal court in July 2025. The credit bureaus' voluntary policy still applies - no medical debt is reported until it's over 12 months delinquent, paid medical collections are removed, and unpaid medical debt under $500 never appears - and roughly 15 states have their own separate bans on top of that. QWill buy now, pay later purchases affect my credit score? AIncreasingly, yes. BNPL plans are starting to be reported to credit bureaus and can factor into FICO-based scores - on-time payments can help build history, while missed payments can hurt it like any other account. **Categories:** Finance and Investing 101, Personal Finance and Money **Tags:** 700, 800, credit, credit score, Equifax, Experian, FICO, rating, TransUnion --- ### [Student Debt in 2026: The SAVE Plan Is Gone — Here's What Replaced It](https://savingtoinvest.com/5-tips-for-paying-off-student-debt-faster/) **Published:** December 12, 2021 **Author:** Andy **Content:** ### Key Takeaways - SAVE is permanently ending; about 7.5 million enrolled borrowers must actively choose a new plan. - New borrowers after July 2026 pick between the Tiered Standard Plan and RAP, capped at 1-10% of income. - Miss your SAVE exit window and you default to Standard/Tiered Standard, not RAP. - Auto-pay enrollment by September 30, 2026 temporarily boosts your rate discount from 0.25% to 1%, through June 2028. Student loan repayment has changed significantly since the pandemic-era pause and the SAVE plan experiment. If you’ve been coasting on old information, here’s what’s actually true heading into the second half of 2026. Covered in this Article: [Toggle](#) - [The SAVE Plan Is Gone](#The_SAVE_Plan_Is_Gone) - [What Replaced It: Two Plans Starting July 1, 2026](#What_Replaced_It_Two_Plans_Starting_July_1_2026) - [Already Repaying? What Happens to Your IBR or PAYE Plan](#Already_Repaying_What_Happens_to_Your_IBR_or_PAYE_Plan) - [Five Ways to Pay Off Student Debt Faster (Still True Regardless of Plan)](#Five_Ways_to_Pay_Off_Student_Debt_Faster_Still_True_Regardless_of_Plan) - [A New $23 Billion Settlement Could Forgive Debt for ~450,000 Borrowers](#A_New_23_Billion_Settlement_Could_Forgive_Debt_for_450000_Borrowers) - [What This Means for Your Taxes](#What_This_Means_for_Your_Taxes) - [Looking Ahead: 2027](#Looking_Ahead_2027) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## The SAVE Plan Is Gone The SAVE (Saving on a Valuable Education) Plan, introduced as an income-driven repayment option with unusually generous terms, has been struck down after a prolonged legal battle. A federal court ended the legal challenge by approving a settlement between the Department of Education and the State of Missouri, permanently ending the program. Borrowers who enrolled in SAVE — roughly 7.5 million of them — have spent well over a year in forbearance while the litigation played out, with interest continuing to accrue the entire time for most borrowers. If you’re still in SAVE-related forbearance, you need to actively choose a new plan. Servicers began sending exit notices in July 2026 and are staggering them out on a rolling basis through March 2027, so your own 90-day window starts on the date your notice arrives — not a single fixed deadline for everyone. Borrowers who received their notice right at the start of July have a window closing around September 29–30, 2026. Miss your window and you don’t get bumped into RAP automatically — you’re defaulted into the Standard Repayment Plan or the new Tiered Standard Plan instead. For the roughly half of SAVE enrollees who had a $0 monthly payment, that can mean a jump to a real bill with no advance choice on your part, so it’s worth acting inside your window rather than letting the deadline pass. ## What Replaced It: Two Plans Starting July 1, 2026 Under the One Big Beautiful Bill Act (OBBBA), new federal student loan borrowers have just two repayment plan choices going forward: **Tiered Standard Repayment Plan.** This replaces the old Standard Repayment Plan for anyone whose first federal loan is disbursed on or after July 1, 2026. Your fixed term — 10, 15, 20, or 25 years — is set by your total loan balance rather than a term you choose, with higher balances getting longer terms and lower monthly payments. Predictable, but payments don’t adjust based on income and there’s no forgiveness at the end. **Repayment Assistance Plan (RAP).** An income-driven option where payments are set at 1% to 10% of your income, for up to 30 years. This is the closest thing to a SAVE replacement, but with meaningfully different terms — most notably, RAP’s forgiveness timeline is 30 years if a balance remains, compared to SAVE’s faster path for some borrowers. If your financial planning assumed SAVE’s shorter forgiveness window, that assumption no longer holds and you should re-run the numbers under RAP. If you already had a loan before July 1, 2026, the older Standard Repayment Plan’s original terms still apply to that loan — check with your servicer if you’re unsure which version governs an existing balance. Existing borrowers on other legacy income-driven plans should check whether their plan is still available or whether they’ll also be transitioned — plan availability has been shifting throughout 2026, so verify your specific plan’s status directly at [studentaid.gov](https://studentaid.gov) rather than relying on older articles (including this one, if you’re reading it much later — student loan policy has changed direction multiple times in recent years). ## Already Repaying? What Happens to Your IBR or PAYE Plan If you took out federal loans before July 1, 2026 and are already in repayment, RAP isn’t your only option – and switching to it isn’t automatic or, in many cases, even a good idea. Here’s how the legacy plans actually shake out. **Income-Based Repayment (IBR) stays open indefinitely.** Every Direct Loan disbursed before July 1, 2026 keeps access to IBR – there’s no enrollment deadline coming. What ends IBR access is taking out a new loan after that date, not a date on the calendar. If you first borrowed before July 2014, you’re in “old IBR”: payments at 15% of discretionary income, forgiveness after 25 years. If you first borrowed on or after July 2014, you’re in “new IBR”: 10% of discretionary income, forgiveness after 20 years. **PAYE and ICR are being phased out – but not immediately.** Both plans remain available through July 1, 2028. If you’re currently enrolled in either one, you’ll need to actively choose between IBR and RAP before that deadline. Miss it, and you’ll be automatically moved into RAP whether or not it’s the better fit for your situation. **Should you switch to RAP voluntarily?** Not automatically. RAP forgives any remaining balance after 360 qualifying payments (30 years), forgives unpaid interest each month, and adds a $50 monthly match toward your principal – features IBR doesn’t have. But IBR’s forgiveness clock runs 20 to 25 years, five to ten years faster than RAP’s 30. If you’re several years into an IBR plan and closer to your forgiveness date than to a fresh 30-year term, switching to RAP generally works against you. If you’re early in repayment, or your payments under RAP’s income-based sliding scale (1% to 10% of income) would be meaningfully lower than what IBR requires, RAP can be the better deal. Before deciding, log into your account at [studentaid.gov](https://studentaid.gov) and confirm exactly which plan you’re on, how many qualifying payments you’ve already made, and whether any of your loans were disbursed on or after July 1, 2026 – that last detail can affect which plans remain available to you at all. ## Five Ways to Pay Off Student Debt Faster (Still True Regardless of Plan) Whichever repayment plan you’re on, these fundamentals still apply: ### 1. Pay More Than the Required Minimum When extra payments go toward your loan, notify your servicer in writing that the additional amount should reduce principal — not simply get applied to next month’s payment early. Without that instruction, some servicers will just advance your due date rather than actually shrinking your balance faster. ### 2. Know Exactly What You Owe and Who Services It Loan servicers have changed hands repeatedly in recent years as the federal loan servicing landscape shifted. Confirm your current servicer, balance, and interest rate directly at studentaid.gov rather than assuming your old information is still accurate — a servicer transfer without you noticing is a common reason people miss payments or lose track of a promised forgiveness credit, which can also ding your [credit score](https://savingtoinvest.com/breaking-down-and-improving-your-fico/) if it escalates to a missed payment. ### 3. Understand Your Forgiveness Options Before Counting on Them Public Service Loan Forgiveness (PSLF) for government and qualifying nonprofit employees remains available and is separate from the RAP/Standard Plan changes — but the underlying repayment plan you’re on while working toward PSLF still matters for how your payments count. If you’re pursuing PSLF, confirm your current plan qualifies before assuming your payment history is on track. A bipartisan bill introduced September 4, 2026 — the PSLF Inclusion Act, from Reps. Bill Foster (D-IL) and Brian Fitzpatrick (R-PA) — aims to fix a common trap: borrowers who spend years making payments toward PSLF only to discover their specific repayment plan didn’t actually qualify. The bill hadn’t passed as of this writing, so it doesn’t change today’s rules, but it’s worth tracking if you’re on a forgiveness track. In the meantime, the safest move is still to confirm directly at studentaid.gov (or via the PSLF Help Tool) that your current plan and employer both count before assuming your payment history is on track. ### 4. Loan Consolidation Can Simplify Payments — With Trade-offs Consolidating federal loans into a single new loan can simplify payments and may reset your repayment term, but it can also reset progress toward income-driven forgiveness in some cases and may affect your interest rate calculation. Read the specifics before consolidating if you’re counting years toward forgiveness. ### 5. Target High-Interest Loans First If You Have Multiple If you have both federal and private loans, prioritize the highest-interest-rate loans for extra payments — private loans usually carry higher rates and lack the flexible repayment and forgiveness options that federal loans have, making them the more urgent target for extra principal payments. If you’re also carrying credit card debt alongside student loans, [negotiating down those balances directly](https://savingtoinvest.com/negotiating-down-your-credit-card-debt/) usually saves more than extra student loan payments do, since credit cards typically carry far higher rates. ### 6. Enroll in Auto-Pay by September 30, 2026 for a Bigger Rate Cut The Department of Education is temporarily boosting the standard auto-pay interest rate discount from 0.25% to a full 1% for any federal Direct Loan borrower who enrolls in automatic payments by September 30, 2026, or who’s already enrolled. That larger discount applies through June 30, 2028, before reverting to the normal 0.25% unless extended. It covers all Direct Loans issued after July 1, 2012, including Parent PLUS loans, and there’s nothing extra to do if you’re already on auto-pay – the higher discount applies automatically. If you’re not enrolled yet, sign up through your loan servicer’s website before the deadline; it’s a genuinely free rate cut with no downside for anyone already planning to pay on time each month. ## A New $23 Billion Settlement Could Forgive Debt for ~450,000 Borrowers Separate from the RAP/repayment overhaul above, a long-running class-action settlement with the Department of Education could forgive federal student loan debt for roughly 450,000 borrowers who say their schools misled them with false promises about earnings, transferable credits, or stable careers after enrollment. The settlement covers borrowers who attended one of more than 150 mostly for-profit colleges named in the case, many of which have since closed. A federal appeals court’s late-July 2026 ruling could allow an additional 200,000 borrowers into the relief pool on top of those already covered. This is unrelated to the SAVE-plan settlement discussed earlier in this post – if you attended one of the named schools, check your eligibility and application status through the Department of Education’s borrower defense portal at [studentaid.gov](https://studentaid.gov) rather than waiting for a notice to arrive. ## What This Means for Your Taxes Student loan interest you pay may still be deductible up to $2,500 per year, subject to income phase-outs, whether or not your balance is ultimately forgiven. But the forgiveness itself is a different story than it was a year ago: the pandemic-era tax exclusion expired, so income-driven repayment forgiveness (the standard 20-25 year IBR/RAP discharge) is federally taxable again for any balance forgiven on or after January 1, 2026. PSLF, and discharges for death or total-and-permanent disability, remain permanently tax-free regardless of when they’re granted — it’s specifically the IDR-forgiveness path that changed. If you’re within a few years of an IDR discharge, it’s worth setting aside money for the tax bill now or asking a tax professional about the insolvency exclusion, which can reduce or eliminate the tax owed if your liabilities exceed your assets at the time of forgiveness. If you’re delinquent on federal student loans, be aware that your tax refund can still be offset to cover the debt once collections resume on defaulted loans — see [why your tax refund is lower than expected](https://savingtoinvest.com/why-is-my-tax-refund-so-low-compared-to-prior-years/) if this happens to you unexpectedly. ## Looking Ahead: 2027 The biggest open question heading into 2027 is how RAP actually performs once a full cohort of borrowers has been enrolled for a year or more — whether the $10 minimum payment and interest subsidy hold up as designed, or whether Congress or the Department of Education adjusts the formula. The PAYE/ICR sunset (July 1, 2028) is still more than a year off, but I’d expect messaging and auto-enrollment notices to ramp up well before that deadline as the Department pushes remaining legacy-plan borrowers to choose. The $23 billion for-profit college settlement is also still working through the courts — the additional 200,000 borrowers a federal appeals court could add to the relief pool haven’t been confirmed yet, so I’ll update this page once that ruling firms up. I’ll also keep watching whether raiding retirement savings to pay down student debt makes more sense for anyone in a genuine bind; in almost every case I’ve run the numbers on, it doesn’t once you factor in the [10% early withdrawal penalty and lost growth](https://savingtoinvest.com/how-to-withdraw-money-early-from-your-401k-or-ira-without-paying-a-penalty/), so treat that as a last resort rather than a strategy. ## Common Issues to Watch Out For I hear a few of the same points of confusion constantly, including in reader questions and in forums like r/StudentLoans. **“RAP sounds too good to be true — is the interest subsidy real?”** Yes. RAP guarantees your monthly payment is never less than $10, even if 1% to 10% of your income calculates to less. If that payment doesn’t cover a full month’s interest, the government waives the difference rather than adding it to your balance — so unlike some older plans, your balance shouldn’t spiral upward purely from unpaid interest while you’re enrolled. **Assuming everyone’s SAVE exit deadline is September 30, 2026.** Servicer notices are going out on a rolling basis from July 2026 through March 2027, so your own 90-day window starts on the date your notice arrives, not on a single site-wide date. Check your account status directly at studentaid.gov rather than assuming. **Assuming you’ll automatically stay on your current plan forever.** PAYE and ICR borrowers who don’t actively choose IBR or RAP by July 1, 2028 get automatically defaulted into RAP — which isn’t necessarily the best plan for your situation, especially if you’re already deep into an IBR-style forgiveness timeline. Set a reminder now rather than waiting for a notice. **Not accounting for the RAP $50 principal match when comparing plans.** Beyond the interest subsidy, if your full RAP payment doesn’t reduce your principal balance by at least $50, the Department of Education kicks in the difference (up to $50) as a matching principal payment. That’s a real dollar benefit some borrowers overlook when they’re only comparing headline monthly payment amounts between RAP and IBR. **Treating this page (or any single source) as permanently current.** Student loan repayment rules have changed direction multiple times in the past few years, and litigation or new legislation could shift things again. Always cross-check your specific numbers at studentaid.gov before making a decision based on an article, including this one. Frequently Asked Questions QIs the SAVE plan still available in 2026? ANo. The SAVE Plan has been struck down in court and is being permanently eliminated. Borrowers who were enrolled need to actively choose a new repayment plan rather than waiting to be automatically moved. QWhat replaced the SAVE plan? AStarting July 1, 2026, new borrowers choose between the Tiered Standard Repayment Plan (a fixed term of 10, 15, 20, or 25 years set by your total balance) and the new Repayment Assistance Plan (RAP), an income-driven option capping payments at 1-10% of income for up to 30 years. QWhat happens if I miss my 90-day window to switch out of SAVE? AYou're automatically enrolled in the Standard Repayment Plan or the new Tiered Standard Plan, not RAP. Servicers are sending exit notices on a rolling basis from July 2026 through March 2027, so check your own notice date at studentaid.gov rather than assuming a single deadline applies to you. QIs the RAP interest subsidy actually real, or is there a catch? AIt's real. If your RAP monthly payment (which can be as low as the $10 minimum) doesn't cover a full month's accrued interest, the unpaid interest is waived rather than capitalized onto your balance. There's no separate application - it applies automatically as part of being enrolled in RAP. QShould I switch from IBR or PAYE to RAP? ANot automatically. IBR stays open indefinitely as long as you don't take out a new loan after July 1, 2026, and its 20-25 year forgiveness timeline is faster than RAP's 30 years - so switching usually isn't worth it if you're already well into repayment. PAYE and ICR are being phased out by July 1, 2028, so those borrowers do need to choose between IBR and RAP before that date or get automatically defaulted into RAP. Check your exact plan and qualifying-payment count at studentaid.gov before deciding either way. QWhat happens if I don't choose a plan before the PAYE/ICR deadline? AYou'll be automatically enrolled in RAP starting July 1, 2028, whether or not it's the better option for your situation. If you're closer to an IBR-style forgiveness date than to a fresh start, actively choosing IBR before the deadline is usually the better move. QHow does the auto-pay interest rate reduction work? AEnrolling in automatic payments normally gets you a 0.25% interest rate discount. A temporary Department of Education program boosts that to a full 1% for anyone who enrolls by September 30, 2026, or who's already enrolled, through June 30, 2028. It applies to all Direct Loans issued after July 1, 2012, including Parent PLUS loans, with no extra paperwork needed if you're already signed up. QWhat is the $23 billion student loan settlement about? AIt's a class-action settlement covering borrowers who attended one of 150+ mostly for-profit colleges accused of misleading students about job prospects, transferable credits, or career stability - many of those schools have since closed. It could forgive debt for roughly 450,000 borrowers, with a July 2026 court ruling potentially adding 200,000 more. It's separate from the RAP overhaul and the SAVE-plan settlement. Check studentaid.gov's borrower defense portal for your status. QDoes RAP forgive loans faster than SAVE did? ANo, generally slower. RAP's forgiveness timeline is up to 30 years, which is longer than the timeline some borrowers had under SAVE. If your planning assumed SAVE's faster path, re-run the numbers under RAP. QIs forgiven student loan debt taxable? AIt depends on the type of forgiveness. Income-driven repayment forgiveness (the standard 20-25 year IBR/RAP discharge) became federally taxable again for any balance forgiven on or after January 1, 2026, now that the pandemic-era tax exclusion has expired. PSLF, and discharges for death or total-and-permanent disability, remain permanently tax-free. If you're nearing an IDR discharge, ask about the insolvency exclusion, which can reduce or eliminate the tax owed. QCan my tax refund be taken for defaulted student loans? AYes, once collections activity resumes on defaulted federal student loans, your tax refund can be offset to cover the debt. Staying current or in an income-driven plan protects you from this. QWhat is the PSLF Inclusion Act of 2026? AIt's a bipartisan bill introduced September 4, 2026 by Reps. Bill Foster (D-IL) and Brian Fitzpatrick (R-PA) aimed at borrowers who discover, years into repayment, that their specific plan didn't qualify for Public Service Loan Forgiveness. It hadn't passed as of this writing, so current PSLF rules are unchanged - confirm your plan qualifies directly at studentaid.gov rather than waiting on the bill. **Categories:** Personal Finance and Money, Saving and Investing ideas **Tags:** College, debt, Loans, Student --- ### [SNAP Benefits 2026: EBT Amounts, New Work Rules, and All 50 State Guides](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/) **Published:** March 30, 2020 **Author:** Andy **Content:** ### Key Takeaways - FY2026 max SNAP benefit: $298/month for 1 person, $994/month for a family of 4, a ~2% increase over FY2025 - Benefits are distributed via EBT card and deposit on a state-assigned schedule, typically at the start of each month - The OBBB expanded work requirements to cover adults aged 55 and over and parents of teens (children over 14) for the first time - SNAP enrollment has dropped by more than 4 million people nationwide since the OBBB was signed last July - roughly 1 million of those are children, based on partial state data - driven by expanded work requirements, reduced federal funding, and heavier documentation scrutiny on applicants - Starting October 1, 2026, refugees, asylees, and other humanitarian entrants lose SNAP eligibility entirely unless they become lawful permanent residents - about 90,000 people/month affected, per CBO - Also starting October 1, 2026 - a separate change - the federal government cuts its reimbursement for state SNAP administrative costs from 50% to 25%, shifting a much bigger operating-cost burden onto states - Federal gross income limit is 130% of the poverty line (~$1,632/mo for 1 person) - many states expand this via BBCE - The OBBB cut $186B in SNAP funding and requires states to share benefit costs starting in 2028 The maximum SNAP (Food Stamps) benefit for a family of four in fiscal year 2026 is **$994 per month** — up from $975 last year. If you’re a single adult, the max is **$298/month**. Covered in this Article: [Toggle](#) - [FY2026 SNAP Benefit Amounts](#FY2026_SNAP_Benefit_Amounts) - [What Changed in 2026: OBBB Work Requirements](#What_Changed_in_2026_OBBB_Work_Requirements) - [Immigration Status: Who Loses SNAP Eligibility Starting October 1, 2026](#Immigration_Status_Who_Loses_SNAP_Eligibility_Starting_October_1_2026) - [Administrative Costs: States Absorb a Bigger Share Starting October 1, 2026](#Administrative_Costs_States_Absorb_a_Bigger_Share_Starting_October_1_2026) - [Enrollment Has Dropped by Over 4 Million Since Last July](#Enrollment_Has_Dropped_by_Over_4_Million_Since_Last_July) - [What to Watch: SNAP Changes Ahead](#What_to_Watch_SNAP_Changes_Ahead) - [SNAP Benefits by State: All 50 State Guides](#SNAP_Benefits_by_State_All_50_State_Guides) - [How SNAP Works: Quick Overview](#How_SNAP_Works_Quick_Overview) - [SNAP Benefit History (2022–2026)](#SNAP_Benefit_History_2022%E2%80%932026) - [Looking Ahead: FY2027 SNAP Benefits](#Looking_Ahead_FY2027_SNAP_Benefits) But 2026 is a more complicated year for SNAP than most. The One Big Beautiful Bill (OBBB) made the biggest structural changes to the program in decades — expanding work requirements to older adults and parents of teenagers, narrowing who counts as an eligible immigrant, cutting $186 billion in federal SNAP spending over 10 years, and requiring states to begin sharing benefit costs as early as 2028. Here’s what the numbers look like, what changed, and how to find your state’s specific amounts and deposit dates. ## FY2026 SNAP Benefit Amounts SNAP benefits are adjusted each October 1 via a cost-of-living formula tied to food price inflation. Here are the maximum monthly allotments for FY2026 (October 1, 2025 through September 30, 2026): Household SizeMax Monthly BenefitFederal Gross Income Limit (130% FPL)1 person$298$1,632/mo2 people$546$2,214/mo3 people$785$2,798/mo4 people$994$3,380/mo5 people$1,183$3,963/mo6 people$1,421$4,545/mo7 people$1,571$5,128/mo8+ people$1,791+add ~$583/person **Note**: These are the federal maximums. Most households receive less — your actual benefit depends on net income after deductions. States with Broad-Based Categorical Eligibility (BBCE) may have higher income limits than the federal 130% floor. ## What Changed in 2026: OBBB Work Requirements The OBBB made several significant SNAP changes, most of which took effect in late 2025 and early 2026. **Expanded work requirements**: Before the OBBB, most Able-Bodied Adults Without Dependents (ABAWDs) aged 18–49 had to meet a 20-hour/week work or training requirement. The OBBB extended that to **adults aged 55–64** — a major change affecting millions of older Americans who previously had no work requirement. **Parents of older children**: Parents whose youngest child is **over 14** are now subject to work requirements. Previously, any parent with a child under 18 was exempt. This closes a significant exemption window. **Exemptions that disappeared**: The OBBB also eliminated several standing categorical exemptions that used to shield specific groups regardless of age – veterans, people experiencing homelessness, and young adults who aged out of the foster care system no longer get an automatic pass. Effective February 1, 2026, anyone in those groups who falls within the 18-64 working-age range and doesn’t separately qualify for an exemption (disability, pregnancy, or caring for a child under 14) is subject to the same 80-hour-per-month requirement as everyone else. If you fall into one of these groups and assumed you were exempt, it’s worth confirming your status with your state SNAP office before your next recertification. **The threshold**: 80 hours per month of work, job training, or approved volunteer activity. Fail to meet it and you’re limited to 3 months of SNAP in any 36-month period. **State cost-sharing**: Starting in FY2027, states will begin paying a share of SNAP benefit costs based on their payment error rate. This is new territory for state budgets and I expect it will lead to stricter eligibility administration in higher-error states. **$186 billion in cuts**: The Urban Institute estimates more than 22 million households could lose some or all benefits due to the OBBB’s combined changes. If you were receiving SNAP in 2024 and haven’t recertified recently, it’s worth checking your eligibility — the rules have shifted. --- ## Immigration Status: Who Loses SNAP Eligibility Starting October 1, 2026 The OBBB also rewrote who counts as an eligible immigrant for SNAP, and this change lands separately from the work-requirement rules above. Starting **October 1, 2026**, SNAP eligibility narrows to U.S. citizens, lawful permanent residents (LPRs, or “green card” holders), Cuban and Haitian entrants, and certain individuals from Compact of Free Association (COFA) nations (the Marshall Islands, Micronesia, and Palau). **Who loses eligibility**: Refugees, asylees, and other humanitarian entrants — including trafficking victims and certain survivors of domestic violence — are now categorically ineligible for SNAP unless they separately qualify for and obtain LPR status, a process that can take years and isn’t guaranteed. This is a reversal from prior law, which had specifically carved out these groups as eligible noncitizens alongside LPRs. **The scale of the impact**: The Congressional Budget Office estimates about 90,000 people will lose SNAP in an average month once the change is fully in effect, narrowing which noncitizens can access the program. Refugee-resettlement organizations have flagged this as one of the more consequential SNAP changes in the bill, since many refugee households rely on food assistance in their first years in the U.S. before they’re able to build income stability. **What to do if this affects your household**: If anyone in your household is a refugee, asylee, parolee, or other humanitarian entrant (not yet an LPR), check with your state SNAP office or a local refugee-resettlement agency before October 1, 2026, about your specific status and any transition assistance available. Some states have signaled they may use state-only food assistance funds to backfill part of the gap, though this varies widely and isn’t guaranteed everywhere. This eligibility change is separate from — and in addition to — the OBBB’s Medicaid and CHIP eligibility restrictions for the same groups, which take effect on the same October 1, 2026 date. --- ## Administrative Costs: States Absorb a Bigger Share Starting October 1, 2026 This is a separate OBBB provision from both the immigrant-eligibility cutoff above and the FY2027–2028 benefit cost-sharing change described later on this page — and it’s worth keeping the three straight, since they hit on different dates and affect different budgets. **What’s changing**: Since SNAP began, the federal government has reimbursed states for 50% of the administrative costs of running the program — the eligibility workers, call centers, error-detection systems, and case-management infrastructure that determine who qualifies and process applications. Starting **October 1, 2026**, that federal reimbursement rate drops to 25%, meaning states now cover 75% of their own SNAP administrative costs, up from 50%. **Why it matters even though your benefit amount doesn’t change**: This cut hits state operating budgets, not individual benefit checks — nobody’s monthly SNAP amount changes because of this provision specifically. But state agencies facing a sudden doubling of their share of administrative costs may respond by slowing application processing, reducing staffing, or tightening verification procedures, any of which can make it harder to get on — or stay on — SNAP even if your eligibility hasn’t changed. **The scale for states**: Early state budget estimates show the impact varies widely, per [reporting on the OBBB’s state-level cost impact](https://www.visaverge.com/taxes/states-face-large-new-costs-from-one-big-beautiful-bill-act-for-snap-in-october-2026/). Minnesota has projected roughly $37 million a year in lost federal reimbursement; Ohio has cited administrative shortfalls of more than $50 million starting in October 2026. Multiply that pattern across all 50 states and it’s a multi-billion-dollar annual cost shift industry-wide, a concern [CBPP has also flagged](https://www.cbpp.org/research/food-assistance/a-quick-guide-to-snap-eligibility-and-benefits) as straining state administrative capacity. **How this differs from the benefit cost-sharing change**: The administrative cost cut (this section) affects money states spend *running* SNAP and takes effect October 1, 2026. The separate benefit cost-sharing provision described in “What Changed in 2026” above affects money spent on *actual SNAP benefits* and is tied to each state’s payment error rate, phasing in starting FY2027–2028. They’re both OBBB-driven cost shifts to states, but on different timelines and different budget lines. --- ## Enrollment Has Dropped by Over 4 Million Since Last July The changes above aren’t just theoretical — they’re already showing up in the enrollment numbers. More than 4 million people are estimated to have left SNAP nationwide since the OBBB was signed last July, according to preliminary USDA data through April 2026 tracked by the [Center on Budget and Policy Priorities (CBPP)](https://www.cbpp.org/research/food-assistance/snap-tracker-people-are-losing-food-assistance-as-the-republican-megabill). **Nearly every state has seen declines**, ranging from a few thousand people in New Hampshire to roughly half a million in Texas. Arizona’s enrollment is down by more than 400,000 people — close to half of what it was a year earlier. Of the 19 states that report child-specific SNAP data, those states alone show about 1 million fewer children receiving benefits than in July of last year. **Why enrollment is falling** is genuinely disputed. CBPP’s Katie Bergh attributes it to the combination of expanded work requirements, reduced federal funding, and new state penalties that are pushing agencies to demand far more documentation from applicants — pay stubs, childcare costs, and other paperwork that some households struggle to produce. USDA has told reporters that SNAP participation naturally fluctuates and the drop isn’t tied to any single policy, while Agriculture Secretary Brooke Rollins has framed it as the program “cracking down on waste and fraud” combined with a stronger economy. Bergh has pushed back on that framing, noting unemployment has stayed roughly flat while food prices have kept climbing over the same period. **Local officials are taking notice too.** A bipartisan group of more than 200 mayors sent a letter to the Senate Agriculture Committee in July 2026 asking lawmakers to reverse or delay some of the SNAP changes and cuts, and food banks in states like Arizona report distributing more food than ever as households lose benefits. If your household’s SNAP amount recently dropped or your case was closed and you’re not sure why, it’s worth confirming directly with your state agency whether it’s an eligibility change, a documentation issue, or something else — the reasons vary case by case even as the national trend is clear. --- ## What to Watch: SNAP Changes Ahead A few things I’m tracking closely for the rest of 2026 and into 2027: **FY2027 COLA**: SNAP benefits update every October 1. USDA typically releases the new amounts in late summer. I’ll update this page and all 50 state guides as soon as the numbers drop. **BBCE survival**: The OBBB initially would have eliminated Broad-Based Categorical Eligibility — which lets many states set higher income limits than the federal 130% floor. BBCE narrowly survived the final bill, but it remains a target in future budget negotiations. **State cost-sharing rollout**: As states start absorbing SNAP costs in 2028, watch for changes to how aggressively states audit cases and enforce eligibility rules. **How states respond to the immigrant eligibility cutoff**: Whether states step in with their own funding to soften the October 1 change for refugees and asylees losing federal SNAP eligibility. **How states absorb the administrative cost-share cut**: Whether the October 1, 2026 drop in federal admin reimbursement (50% to 25%) leads to slower application processing or staffing cuts in your state, separate from any change to your own eligibility. **Whether the enrollment decline continues or levels off**: Whether Congress responds to pressure from the mayors’ letter and similar advocacy, and whether USDA’s final, non-preliminary data through the rest of 2026 confirms the same magnitude of drop CBPP is tracking from partial data. Things can shift quickly, and I’ll update this page as soon as any of this changes. --- ## SNAP Benefits by State: All 50 State Guides Each state sets its own EBT card name, deposit schedule, and (in some cases) income limit via BBCE. I’ve put together individual 2026 guides for all 50 states with current benefit amounts, deposit dates, income tables, and how-to-apply information. **Find your state:** State2026 SNAP GuideAlabama[Alabama SNAP 2026: EBT amounts, deposit dates, eligibility](https://savingtoinvest.com/alabama-snap-food-stamp-program-latest-updates-and-news/)Alaska[Alaska SNAP 2026: EBT amounts, deposit dates, eligibility](https://savingtoinvest.com/alaska-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/)Arizona[Arizona SNAP 2026: EBT amounts, deposit dates, eligibility](https://savingtoinvest.com/arizona-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/)Arkansas[Arkansas SNAP 2026: EBT amounts, deposit dates, eligibility](https://savingtoinvest.com/arkansas-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/)California[California SNAP / CalFresh 2026: EBT amounts, deposit dates, eligibility](https://savingtoinvest.com/california-ca-calfresh-snap-program/)Colorado[Colorado SNAP 2026: EBT amounts, deposit dates, eligibility](https://savingtoinvest.com/colorado-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/)Connecticut[Connecticut SNAP 2026: EBT amounts, deposit dates, eligibility](https://savingtoinvest.com/connecticut-snap-food-stamp-program-latest-updates-and-news/)Delaware[Delaware SNAP 2026: EBT amounts, deposit dates, eligibility](https://savingtoinvest.com/delaware-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/)Florida[Florida SNAP 2026: EBT amounts, deposit dates, eligibility](https://savingtoinvest.com/florida-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility-u/)Georgia[Georgia SNAP 2026: EBT amounts, deposit dates, eligibility](https://savingtoinvest.com/georgia-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/)Hawaii[Hawaii SNAP 2026: EBT amounts, deposit dates, eligibility](https://savingtoinvest.com/hawaii-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/)Idaho[Idaho SNAP 2026: EBT amounts, deposit dates, eligibility](https://savingtoinvest.com/idaho-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/)Illinois[Illinois SNAP 2026: EBT amounts, deposit dates, eligibility](https://savingtoinvest.com/illinois-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/)Indiana[Indiana SNAP 2026: EBT amounts, deposit dates, eligibility](https://savingtoinvest.com/indiana-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/)Iowa[Iowa SNAP 2026: EBT amounts, deposit dates, eligibility](https://savingtoinvest.com/iowa-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/)Kansas[Kansas SNAP 2026: EBT amounts, deposit dates, eligibility](https://savingtoinvest.com/kansas-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/)Kentucky[Kentucky SNAP 2026: EBT amounts, deposit dates, eligibility](https://savingtoinvest.com/kentucky-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/)Louisiana[Louisiana SNAP 2026: EBT amounts, deposit dates, eligibility](https://savingtoinvest.com/louisiana-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/)Maine[Maine SNAP 2026: EBT amounts, deposit dates, eligibility](https://savingtoinvest.com/maine-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/)Maryland[Maryland SNAP 2026: EBT amounts, deposit dates, eligibility](https://savingtoinvest.com/maryland-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/)Massachusetts[Massachusetts SNAP 2026: EBT amounts, deposit dates, eligibility](https://savingtoinvest.com/massachusetts-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/)Michigan[Michigan SNAP / Bridge Card 2026: EBT amounts, deposit dates, eligibility](https://savingtoinvest.com/michigan-snap-food-stamp-program-latest-updates-and-news/)Minnesota[Minnesota SNAP 2026: EBT amounts, deposit dates, eligibility](https://savingtoinvest.com/minnesota-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/)Mississippi[Mississippi SNAP 2026: EBT amounts, deposit dates, eligibility](https://savingtoinvest.com/mississippi-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/)Missouri[Missouri SNAP 2026: EBT amounts, deposit dates, eligibility](https://savingtoinvest.com/missouri-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/)Montana[Montana SNAP 2026: EBT amounts, deposit dates, eligibility](https://savingtoinvest.com/montana-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/)Nebraska[Nebraska SNAP 2026: EBT amounts, deposit dates, eligibility](https://savingtoinvest.com/nebraska-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/)Nevada[Nevada SNAP 2026: EBT amounts, deposit dates, eligibility](https://savingtoinvest.com/nevada-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/)New Hampshire[New Hampshire SNAP 2026: EBT amounts, deposit dates, eligibility](https://savingtoinvest.com/new-hampshire-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/)New Jersey[New Jersey SNAP 2026: EBT amounts, deposit dates, eligibility](https://savingtoinvest.com/new-jersey-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/)New Mexico[New Mexico SNAP 2026: EBT amounts, deposit dates, eligibility](https://savingtoinvest.com/new-mexico-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/)New York[New York SNAP 2026: EBT amounts, deposit dates, eligibility](https://savingtoinvest.com/new-york-ny-snap-program-latest-updates-and-news/)North Carolina[North Carolina SNAP 2026: EBT amounts, deposit dates, eligibility](https://savingtoinvest.com/north-carolina-nc-snap-food-and-nutrition-services-program-latest-updates-and-news/)North Dakota[North Dakota SNAP 2026: EBT amounts, deposit dates, eligibility](https://savingtoinvest.com/north-dakota-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/)Ohio[Ohio SNAP 2026: EBT amounts, deposit dates, eligibility](https://savingtoinvest.com/ohio-snap-food-stamp-program-latest-updates-and-news/)Oklahoma[Oklahoma SNAP 2026: EBT amounts, deposit dates, eligibility](https://savingtoinvest.com/oklahoma-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/)Oregon[Oregon SNAP 2026: EBT amounts, deposit dates, eligibility](https://savingtoinvest.com/oregon-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/)Pennsylvania[Pennsylvania SNAP 2026: EBT amounts, deposit dates, eligibility](https://savingtoinvest.com/pennsylvania-pa-snap-program/)Rhode Island[Rhode Island SNAP 2026: EBT amounts, deposit dates, eligibility](https://savingtoinvest.com/rhode-island-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/)South Carolina[South Carolina SNAP 2026: EBT amounts, deposit dates, eligibility](https://savingtoinvest.com/south-carolina-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/)South Dakota[South Dakota SNAP 2026: EBT amounts, deposit dates, eligibility](https://savingtoinvest.com/south-dakota-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/)Tennessee[Tennessee SNAP 2026: EBT amounts, deposit dates, eligibility](https://savingtoinvest.com/tennessee-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/)Texas[Texas SNAP 2026: EBT amounts, deposit dates, eligibility](https://savingtoinvest.com/texas-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/)Utah[Utah SNAP 2026: EBT amounts, deposit dates, eligibility](https://savingtoinvest.com/utah-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/)Vermont[Vermont SNAP / 3SquaresVT 2026: EBT amounts, deposit dates, eligibility](https://savingtoinvest.com/vermont-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/)Virginia[Virginia SNAP 2026: EBT amounts, deposit dates, eligibility](https://savingtoinvest.com/virginia-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/)Washington[Washington SNAP 2026: EBT amounts, deposit dates, eligibility](https://savingtoinvest.com/washington-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/)West Virginia[West Virginia SNAP 2026: EBT amounts, deposit dates, eligibility](https://savingtoinvest.com/west-virginia-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/)Wisconsin[Wisconsin SNAP / FoodShare 2026: EBT amounts, deposit dates, eligibility](https://savingtoinvest.com/wisconsin-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/)Wyoming[Wyoming SNAP 2026: EBT amounts, deposit dates, eligibility](https://savingtoinvest.com/wyoming-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) --- ## How SNAP Works: Quick Overview SNAP (Supplemental Nutrition Assistance Program) is administered by USDA’s Food and Nutrition Administration (FNA) and operated by each state. Benefits load monthly onto a state-issued EBT debit card — the card name varies by state (Golden State Advantage Card in California, Bridge Card in Michigan, etc.) but functions the same way at checkout. **Eligibility is based on**: - Gross income (before deductions): generally 130% FPL at the federal level, higher in states with BBCE - Net income (after deductions): 100% FPL for most households - Citizenship/immigration status: U.S. citizens and LPRs qualify; starting October 1, 2026, refugees, asylees, and other humanitarian entrants no longer do (see the eligibility section above) - Work requirements: most non-exempt adults 18–64 must register for work; ABAWDs must meet 80 hrs/month **Common deductions** that reduce your countable income: - 20% earned income deduction (automatic) - Standard deduction ($219/month for 1–3 person households in FY2026) - Excess shelter cost deduction - Dependent care, medical expenses (elderly/disabled), and child support payments **Why the excess shelter deduction causes such big swings.** This is the deduction most households don’t understand, and it’s usually the reason a benefit amount changes dramatically even when income hasn’t. Your caseworker adds your rent/mortgage to a flat Standard Utility Allowance (SUA) — a set amount your state assigns based on which utilities you pay, not your actual utility bills. If that combined shelter cost is more than half your income after other deductions, the amount over that 50% line gets subtracted from your countable income, which lowers your net income and raises your benefit. For most households this deduction is capped; for households with an elderly or disabled member, it’s uncapped, which is why elderly/disabled households can see much larger deductions. A move to a lower-rent home, a recertification that updates your rent on file, or losing an elderly/disabled exemption can each swing your benefit by hundreds of dollars with no change in income at all — which is exactly the kind of drop that looks like a mistake but usually isn’t. **How much you receive** depends on your household size and net income. The formula: max benefit minus 30% of net income. Households with zero net income get the full maximum; households with net income above the limit get nothing. ## SNAP Benefit History (2022–2026) PeriodMax Benefit (Family of 4)Key DevelopmentFY2022 (Oct 2021 – Sep 2022)$835/monthTemporary boost from the American Rescue Plan expired Oct 1, 2021 — but emergency allotments were still in place in most statesFY2023 (Oct 2022 – Sep 2023)$939/monthEmergency Allotments ended in early 2023. Many households saw benefits drop sharply — some to as little as $23/monthFY2024 (Oct 2023 – Sep 2024)$973/month~3.7% COLA; first full year without the pandemic boostFY2025 (Oct 2024 – Sep 2025)$975/monthMinimal increase (~0.2%); OBBB passed in 2025FY2026 (Oct 2025 – Sep 2026)$994/month~2% increase; OBBB work requirements take effect; enrollment falls 4M+; refugee/asylee eligibility narrows Oct 1 The biggest disruption in recent years was the end of Emergency Allotments in 2023 — when pandemic-era supplement payments ended, some households that had received the maximum saw their regular benefit drop to a fraction of that amount. ## Looking Ahead: FY2027 SNAP Benefits FY2027 runs October 1, 2026 through September 30, 2027. USDA’s Food and Nutrition Administration made it official on August 21, 2026: maximum allotments are rising for every household size, based on June 2026 Thrifty Food Plan costs — the same formula used every year. **Official FY2027 numbers:** A single person’s max allotment rises to $306 (from $298), and a family of four rises to $1,023 (from $994) — both higher than the roughly 1-2% food-inflation range I’d estimated earlier this summer. The gross income limit (130% of the federal poverty level) for a family of four also rises, to $3,575/month. Household SizeFY2026 MaxFY2027 Max (Official)FY2027 Gross Income Limit (130% FPL)1 person$298$306$1,729/mo2 people$546$562$2,345/mo3 people$785$808$2,960/mo4 people$994$1,023$3,575/mo5 people$1,183$1,217$4,191/mo6 people$1,421$1,463$4,806/mo7 people$1,571$1,616$5,421/mo8 people$1,791$1,841$6,037/mo9-17 people+$583/person+$225/person+$616/person18+ peoplecapped$3,887 cap— Source: [USDA FNA’s official FY2027 COLA memo](https://www.usda.gov/sites/default/files/guidance-documents/fna.snap-cola2027.pdf), dated August 21, 2026. **OBBB note:** The One Big Beautiful Bill prohibits USDA from *structurally reevaluating* the Thrift Food Plan until October 1, 2027. This means FY2027 benefits will rise only via the standard annual COLA — no structural reassessment like the 2021 Biden-era revision that raised benefits 21%. The upside: benefits can still increase. The downside: they can’t be boosted above inflation via a TFP redesign. Also starting October 1, 2027, states will begin sharing a portion of SNAP benefit costs based on their payment error rate — a separate structural change from the eligibility and TFP items above. *[Subscribe here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to be notified when USDA releases official FY2027 amounts.* Frequently Asked Questions QHow much is SNAP in 2026? AThe maximum SNAP benefit in FY2026 is $298/month for a single person, $546 for 2 people, $785 for 3 people, and $994 for a family of four. Most households receive less than the maximum based on their net income after deductions. QWhen does SNAP deposit in 2026? ASNAP deposit dates vary by state and are usually based on your case number, last name, or assigned day at the start of your enrollment. Most states distribute benefits in the first 1-10 days of the month. See your state's page in the table above for exact deposit schedule information. QWhat are the income limits for SNAP in 2026? AThe federal gross income limit is 130% of the poverty line - about $1,632/month for a single person or $3,380/month for a family of four. Many states expand this through Broad-Based Categorical Eligibility (BBCE) - some states go up to 200% FPL. Check your state's guide for the specific income limit that applies. QDid SNAP benefits increase in 2026? AYes, slightly. The maximum benefit for a family of four rose from $975 to $994 (about 2%), reflecting food price inflation. This is the standard annual COLA adjustment - not a policy change. However, the One Big Beautiful Bill cut overall SNAP spending by $186 billion, expanded work requirements, and narrowed noncitizen eligibility, which affects who qualifies. QWhat are the new SNAP work requirements in 2026? AThe One Big Beautiful Bill (OBBB) expanded SNAP work requirements to adults aged 55-64 (previously only 18-49 were required) and to parents whose youngest child is over 14 (previously exempt if any child was under 18). The requirement is 80 hours per month of work, training, or approved activity. Failure to meet it limits SNAP to 3 months in any 36-month period. QHow many people have lost SNAP benefits since the OBBB passed? AMore than 4 million people nationwide, according to preliminary USDA data tracked by the Center on Budget and Policy Priorities through April 2026. About 1 million of those are children, based on data from the 19 states that report child-specific SNAP figures. The decline is attributed to a mix of expanded work requirements, reduced federal funding, and heavier documentation demands on applicants. QDo refugees and asylees still qualify for SNAP in 2026? AOnly until October 1, 2026. After that date, refugees, asylees, and other humanitarian entrants (including trafficking victims and certain domestic violence survivors) are no longer eligible for SNAP unless they've obtained lawful permanent resident status. The CBO estimates about 90,000 people lose SNAP in an average month as a result. QWill states have to pay for SNAP starting in 2026? ANot for benefit costs in 2026 - that cost-sharing based on payment error rates starts in FY2027 and FY2028. But states do take on a bigger administrative-cost burden starting October 1, 2026, when federal reimbursement for SNAP administrative costs drops from 50% to 25%. These are two separate OBBB provisions on different timelines. QWhat is the SNAP administrative cost-share change on October 1, 2026? AStarting that date, the federal government cuts its reimbursement for states' SNAP administrative costs (eligibility staff, case management, error-detection systems) from 50% to 25%, meaning states now cover 75% of those operating costs. It doesn't change individual benefit amounts, but it could affect how quickly states process applications and renewals. QHow do I apply for SNAP in 2026? ASNAP applications are handled by each state. See the state-specific guides in the table above - each one links directly to the state's online application portal and provides phone numbers and in-person options. Processing takes up to 30 days, or 7 days if you qualify for expedited SNAP. QWhy did my SNAP benefit drop even though my income didn't change? AThe most common cause is a change to your excess shelter deduction, not your income. This deduction is based on your rent/mortgage plus a flat Standard Utility Allowance (SUA) your state assigns - not your actual utility bills - and it only counts once your shelter costs exceed 50% of your income after other deductions. A change in rent, a recertification that updates your file, or a change in elderly/disabled status (which removes the cap on this deduction) can swing your benefit by hundreds of dollars with no change in income. If your benefit changed unexpectedly, ask your caseworker to walk through your shelter and utility deduction specifically - it's the single biggest driver of these swings. QAre veterans or homeless individuals exempt from the new SNAP work requirements? ANot automatically anymore. The OBBB eliminated the standing categorical exemptions that used to cover veterans, people experiencing homelessness, and young adults who aged out of foster care, effective February 1, 2026. Anyone in those groups aged 18-64 without a qualifying disability or other exemption (like caring for a child under 14) is now subject to the same 80-hour-per-month work requirement as everyone else. Check with your state SNAP office if this affects you. **Categories:** Taxes and Retirement --- ### [IRS Audit Triggers and Red Flags in 2026 — Why Returns Get Pulled and How AI Is Used to Flag Them](https://savingtoinvest.com/irs-audit-triggers-and-red-flags-for/) **Published:** April 15, 2010 **Author:** Andy **Content:** ### Key Takeaways - The overall IRS audit rate stays well under 0.5%, but climbs to roughly 4% for filers earning above $10 million in 2026. - Correspondence audits (a mailed documentation request) are up about 34% as a shrinking, increasingly AI-assisted IRS covers more returns with fewer staff. - A March 2026 GAO report found 126 active AI tools now running across the IRS, up from just 10 in 2022 - used to score audit risk, not to decide audits outright. - Audits generally reach back 3 years, 6 years for a major income understatement, and have no time limit for fraud or unfiled returns. Most taxpayers, myself included, share the same dread of getting audited. In reality, the odds aren’t that high for most filers, and recent IRS staffing cuts have pushed them even lower — though not evenly across income levels. The IRS audits well under 0.5% of the more than 150 million returns filed each year. That average hides a wide range: audit rates climb sharply the higher your income goes, and the agency has openly said it wants to keep rates for anyone earning under $400,000 at 2018 levels. Covered in this Article: [Toggle](#) - [The 2026 Numbers: Fewer Audits, Especially at the Top](#The_2026_Numbers_Fewer_Audits_Especially_at_the_Top) - [Common Reasons Returns Are Pulled for Review](#Common_Reasons_Returns_Are_Pulled_for_Review) - [Types of IRS Audits](#Types_of_IRS_Audits) - [What Actually Triggers a Closer Look](#What_Actually_Triggers_a_Closer_Look) - [Is the IRS Using AI to Decide Who Gets Audited?](#Is_the_IRS_Using_AI_to_Decide_Who_Gets_Audited) - [Deductions That Still Draw Scrutiny](#Deductions_That_Still_Draw_Scrutiny) - [If the IRS Comes Calling](#If_the_IRS_Comes_Calling) - [How Far Back Can My Return Be Audited?](#How_Far_Back_Can_My_Return_Be_Audited) - [Looking Ahead: 2027 Filing Season](#Looking_Ahead_2027_Filing_Season) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## The 2026 Numbers: Fewer Audits, Especially at the Top Here’s where it gets interesting. The IRS previously announced plans to sharply increase audits of high earners and large partnerships using funding from the Inflation Reduction Act. That hasn’t played out the way it was planned. IRS examination staffing has dropped by roughly 22% since 2024, and the division responsible for auditing billionaires lost about 38% of its staff, per [Kiplinger’s reporting on the cuts](https://www.kiplinger.com/taxes/how-irs-staff-cuts-are-changing-audits). New audits of filers earning $10 million or more came in at nearly half of what the IRS had targeted for the year, and new partnership audits landed at about half of target too. The practical result: audit rates by income bracket for 2026 look roughly like this — 0.6% for filers earning $500,000 to $1 million, 1.1% for $1 million to $5 million, 3.1% for $5 million to $10 million, and around 4% for those above $10 million. All of these are lower than the IRS’s own stated goals, a direct consequence of a smaller workforce. What’s grown instead is the correspondence audit — the mailed request for documentation rather than an in-person exam. Correspondence audits are up roughly 34% as the IRS leans on the cheaper, more automated review method to cover for reduced staff. If you get audited today, a letter is by far the more likely outcome than a face-to-face meeting. None of this means the underlying reasons returns get pulled have changed. It just means the IRS is being more selective about which flagged returns get real attention. ## Common Reasons Returns Are Pulled for Review - **New items compared to your last few years of filing.** A return that looks meaningfully different from your recent history — a new business, a big new deduction, a large swing in income — draws a second look. - **Refundable credit discrepancies.** Mismatches on credits like the [Child Tax Credit]() and Kiddie Tax”) or [Earned Income Tax Credit]()“) are a longstanding trigger. Worth watching for 2026 specifically: the new [OBBBA deductions for tips and overtime pay]() are untested territory for the IRS’s automated matching systems, and errors on first-time claims are common. - **Filing before your W-2 arrives.** Using your last pay stub instead of the actual W-2 is a frequent source of math errors that flags a return. - **Education credit claims** that don’t match what your school reported on Form 1098-T. - **Identity verification issues** tied to prior fraud flags on your account. - **Adding or dropping dependents** from one year to the next without an obvious life event (new baby, custody change) to explain it. - **An offset for prior-year debt** that won’t show up on the refund offset line — call the Treasury Offset Program at 800-304-3107 if you suspect this. - **A missing Form 1095-A** for marketplace health insurance, when the IRS has a record you had coverage. ## Types of IRS Audits Despite what you see in movies, most IRS audits don’t involve agents in suits going through your filing cabinet. The large majority are correspondence audits — a letter asking for documentation on a specific item, not a meeting. You can generally tell if a past return was audited by looking for [Code 420 on your IRS transcript](). ## What Actually Triggers a Closer Look Every return gets a score from the IRS’s Discriminant Function (DIF) system, based on how it compares to a large sample of similar returns. A taxpayer earning $100,000 who claims a charitable deduction well above what’s typical for that income level gets a higher score, and a higher chance of review. That system is built to catch unusual deductions, not underreported income, so the IRS separately runs targeted projects aimed at cash-heavy businesses — restaurants, salons, and similar — where income is harder to verify against third-party reporting. Anyone paid on a 1099 is easier to check, since the IRS already has a matching record from whoever paid them. The stakes for the IRS are bigger than they used to be. The agency’s [latest tax gap estimate](https://www.irs.gov/newsroom/the-tax-gap) puts the gross gap — taxes owed but not paid on time — at about $696 billion for tax year 2022, with roughly $606 billion of that never recovered even after enforcement and late payments. Underreported income is the largest single piece of that gap, which is exactly why cash-heavy and 1099-based income keep getting extra attention. ## Is the IRS Using AI to Decide Who Gets Audited? Increasingly, yes. A [March 2026 GAO report](https://www.gao.gov/products/gao-26-107522) counted 126 active AI applications running across the IRS, up from just 10 in August 2022 – a little more than a third of them already live rather than still in testing. Most of that buildout sits on top of the DIF-style scoring described above, not instead of it. Machine-learning models now screen returns at scale, flagging complex partnerships, high-wealth filers, and digital-asset transactions for a closer look, and on the criminal side the IRS has a $1.8 million Palantir contract testing AI models on case selection. None of this means a computer decides your fate. Every account of how it actually works describes AI producing a risk score, with a human examiner still making the final call on whether to open an audit – the same human-in-the-loop structure the IRS has used for decades, just running on a bigger, faster net. That hasn’t stopped congressional Democrats from pressing the agency on whether a shrinking workforce can meaningfully oversee an expanding set of AI tools, especially given independent research showing IRS audit selection has already skewed unevenly by race. For most filers earning under $400,000, I wouldn’t lose sleep over this specifically – the things that get you flagged (see above) haven’t changed. What’s changed is the paperwork you’re likely to get if something trips a wire: a letter, not a visit, and probably faster than it would have a few years ago. Worth noting: scammers are riding the same AI wave to fake IRS letters and calls, so if anything shows up, [make sure it’s a real notice and not one of this year’s AI-powered scams](https://savingtoinvest.com/should-i-be-worried-if-i-get-an-irs-notice-or-letter-will-it-affect-my-tax-return-processing-or-refund-payment/) before you respond. ## Deductions That Still Draw Scrutiny Take your legitimate deductions, but keep the receipts to back them up if asked. A few categories the IRS pays particular attention to: **Home-office deduction.** Still commonly claimed, still commonly scrutinized, since relatively few filers who claim it actually meet the strict “regular and exclusive use” test. **Income from offshore accounts.** The IRS continues to prioritize foreign account disclosure matching, cross-checking foreign bank data against what filers report. **Wage income paired with a Schedule C loss.** A full-time W-2 earner who also reports a losing side business — especially something that could look like a hobby (a small farm, a horse-breeding operation) — tends to get a second look. **Net operating loss carrybacks.** Businesses claiming a carryback often need to substantiate the loss more thoroughly than in a typical year. **Capital gains exclusion on a home sale.** With home values up significantly in many markets, more filers are bumping into the $250,000 (single) / $500,000 (married filing jointly) gain exclusion limits. Keep records of home improvements — they raise your basis and reduce your taxable gain, but only if you can document them. One category that used to be a classic audit magnet no longer applies to most people: unreimbursed employee business expenses. This was already suspended for regular W-2 employees from 2018 through 2025 under the Tax Cuts and Jobs Act, and the One Big Beautiful Bill Act made that suspension **permanent** starting in 2026. Today it only applies to Armed Forces reservists, qualified performing artists, fee-basis government officials, and employees with impairment-related work expenses — plus a separate, modified above-the-line deduction of up to $350 for educators’ out-of-pocket classroom expenses. If you’re a regular employee, this deduction simply isn’t available to you anymore, audit risk or not. *[Subscribe here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) and I’ll flag it if any of these thresholds or rules shift.* ## If the IRS Comes Calling Never ignore an IRS letter, and respond before the deadline printed on it. If a professional or firm prepared your return, loop them in immediately — they can usually respond directly to the IRS on your behalf. If you filed yourself, gather the documentation requested and respond completely the first time; incomplete responses are what turn a simple correspondence audit into a drawn-out one. Most tax software also offers audit protection add-ons, worth considering if you’re claiming anything unusual this year. A face-to-face audit is rare, but if you’re called in for one, bring a CPA or tax attorney, especially if a paid preparer did your original return. ## How Far Back Can My Return Be Audited? The standard rule is three years from your filing deadline. But there are real exceptions worth knowing: - **Six years** if you understated your gross income by more than 25% — this also covers significant basis overstatements. - **No limit at all** if the IRS finds fraud, or if you never filed a return in the first place — the clock simply never starts. - **Six years** if you failed to report more than $5,000 of income from a specified foreign financial asset. Separately, the IRS generally has 10 years to collect a tax debt once it’s assessed — a longer and different clock than the audit window itself. ## Looking Ahead: 2027 Filing Season Two things worth watching. First, whether IRS audit rates for high earners start closing the gap with the agency’s stated targets, or whether continued staffing constraints keep pushing actual enforcement further below plan — FY26 is already tracking behind FY25, which itself missed targets. Second, 2026 returns claiming the new OBBBA tips and overtime deductions will be the first real test of how the IRS’s matching systems handle them. I’d expect some correspondence audits tied specifically to documentation gaps on those claims as the IRS works out its verification process, and I’ll update this page once there’s real data on how that’s playing out. ## Common Issues to Watch Out For - **Assuming a low overall audit rate means you’re safe.** The overall rate is low, but it climbs fast once you’re claiming unusual deductions relative to your income, regardless of how much you earn. - **Filing before your final W-2 arrives.** This remains one of the most avoidable triggers — the numbers on your last pay stub rarely match your W-2 exactly. - **Ignoring a correspondence audit letter.** These are simple to resolve if you respond promptly and completely; they get complicated fast if you don’t. - **Not keeping receipts for large or unusual deductions.** The deduction itself isn’t the problem — an unsubstantiated deduction is. - **Claiming the unreimbursed employee expense deduction as a regular W-2 employee.** It’s gone for 2026 unless you fall into one of the narrow exception categories above. Frequently Asked Questions QWhat's the actual chance of getting audited by the IRS in 2026? AWell under 0.5% overall, but it rises with income - around 0.6% for filers earning $500,000 to $1 million, up to roughly 4% for those earning more than $10 million. IRS staffing cuts have pushed actual audit rates below the agency's own stated targets, especially for high earners. QIs the unreimbursed employee business expense deduction still available? ANo, not for most W-2 employees. It was suspended from 2018-2025 under the TCJA and was made permanent by the One Big Beautiful Bill Act starting in 2026. It's still available to Armed Forces reservists, qualified performing artists, fee-basis government officials, and employees with impairment-related work expenses, plus a separate $350 above-the-line deduction for educators. QHow far back can the IRS audit my tax return? AGenerally three years from your filing deadline. That extends to six years if you understated your gross income by more than 25%, and there's no time limit at all for fraud or if you never filed a return. QWhat's the most common type of IRS audit? AA correspondence audit - a letter requesting documentation on a specific item - rather than an in-person exam. These have increased roughly 34% as the IRS relies more on automated, mail-based review with a smaller staff. QWill claiming the new no-tax-on-tips or no-tax-on-overtime deduction increase my audit risk? AIt's too early to say for certain, since 2026 is the first filing season these deductions exist, but new deduction categories typically see more IRS scrutiny in their first year or two as documentation and verification norms get established. QWhat should I do if I get an IRS audit letter? ARespond before the deadline on the letter with complete documentation. If a paid preparer did your return, loop them in immediately. Never ignore the letter - that's what turns a simple correspondence audit into a prolonged one. QIs the IRS using AI to decide who gets audited? AYes, increasingly. A March 2026 GAO report counted 126 active AI applications running across the IRS, up from just 10 in 2022, mostly used to score returns for audit risk at greater scale - with a human examiner still making the final call on whether to open an audit. QDoes the IRS's use of AI make me more likely to get audited? ANot directly for most filers earning under $400,000. AI is mainly speeding up the same risk-scoring the IRS has always used - unusual deductions relative to income, cash-heavy businesses, 1099 mismatches - rather than creating new triggers, though it's a big reason correspondence audits have risen as a smaller IRS covers more ground. **Categories:** Taxes and Retirement **Tags:** Audit, IRS, red flag, tax --- ### [2026 Year-End Tax Planning: 15 Moves to Make For Lower Taxes or a Higher Refund](https://savingtoinvest.com/15-year-end-tax-deductions-to-remember-unless-you-want-to-give-the-irs-a-tax-free-loan/) **Published:** December 2, 2010 **Author:** Andy **Content:** ### Key Takeaways - The SALT deduction cap jumped to $40,400 in 2026, up from just $10,000 under prior law. - QCDs let you send up to $111,000 from your IRA to charity without raising your taxable income. - Dependent care FSA limits jumped to $7,500 in 2026 under OBBBA, up from just $5,000 before. - The federal Section 25C energy credit expired December 31, 2025 - check state programs instead. As the year winds down, a few hours reviewing your tax situation can save you real money. Not every move here will apply to you — some are for itemizers, some are for retirees, some are specific to your income level. But there’s almost always something worth acting on before December 31. One upfront note: the standard deduction for 2026 is **$16,100 for single filers and $32,200 for married filing jointly**. With the threshold that high, most people won’t itemize — which means several of the classic deductions (charitable donations, mortgage interest, medical expenses) won’t provide a direct federal tax benefit unless your total itemized deductions exceed the standard deduction. I’ve flagged where that distinction matters. Here are 16 moves worth reviewing. Covered in this Article: [Toggle](#) - [1. Max Out Your 401(k) Before December 31](#1_Max_Out_Your_401k_Before_December_31) - [2. Fund an IRA — You Have Until April](#2_Fund_an_IRA_%E2%80%94_You_Have_Until_April) - [3. Use Charitable Giving Strategically (QCDs for 70½+)](#3_Use_Charitable_Giving_Strategically_QCDs_for_70%C2%BD) - [4. Take Advantage of the Higher SALT Deduction](#4_Take_Advantage_of_the_Higher_SALT_Deduction) - [5. Review Medical and Health Expense Deductions](#5_Review_Medical_and_Health_Expense_Deductions) - [6. Maximize Your HSA](#6_Maximize_Your_HSA) - [7. Tax-Loss Harvesting Before December 31](#7_Tax-Loss_Harvesting_Before_December_31) - [8. Time Your Income and Deductions](#8_Time_Your_Income_and_Deductions) - [9. Dependent Care FSA and Child Care Credit](#9_Dependent_Care_FSA_and_Child_Care_Credit) - [10. American Opportunity Tax Credit (AOTC)](#10_American_Opportunity_Tax_Credit_AOTC) - [11. Give Annual Gifts to Family](#11_Give_Annual_Gifts_to_Family) - [12. Fund or Superfund a 529 Plan](#12_Fund_or_Superfund_a_529_Plan) - [13. Educator Expense Deduction ($350)](#13_Educator_Expense_Deduction_350) - [14. Mortgage Interest, Refinancing Points, and PMI](#14_Mortgage_Interest_Refinancing_Points_and_PMI) - [15. Federal Energy Credits Expired — Check Your State](#15_Federal_Energy_Credits_Expired_%E2%80%94_Check_Your_State) - [16. New OBBBA Senior Deduction ($6,000)](#16_New_OBBBA_Senior_Deduction_6000) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027](#Looking_Ahead_2027) ## 1. Max Out Your 401(k) Before December 31 The 2026 limit for 401(k) contributions is **$24,500**, up from $23,500 last year. If you’re 50 or older, you can add a catch-up contribution of **$8,000** (for a total of $32,500). And if you’re aged 60, 61, 62, or 63, [SECURE 2.0](https://savingtoinvest.com/navigating-the-new-rules-how-the-secure-2-0-act-impacts-your-retirement-catch-up-contributions/) created a “super catch-up” — your limit is **$11,250** instead of $8,000, for a total of $35,750. Pre-tax 401(k) contributions reduce your taxable income dollar for dollar. If you’re behind on contributions, now is the time to increase your payroll withholding before the December 31 cutoff. Unlike IRAs, you can’t fund a 401(k) after the year ends. See the [2026 401(k) contribution limits](https://savingtoinvest.com/maximum-employee-and-employer-401k-contribution-limits-and-catch-up-amounts/) post for the full breakdown including all catch-up tiers. ## 2. Fund an IRA — You Have Until April Traditional IRA and Roth IRA contributions for 2026 can be made up to the April 15, 2027 deadline, so there’s less urgency here — but it’s still worth planning now. The 2026 limit is **$7,500** (or $8,600 if you’re 50 or older, thanks to the SECURE 2.0 catch-up increase). Whether a traditional IRA contribution is deductible depends on your income and whether you or your spouse have a workplace retirement plan. Roth IRA contributions phase out between **$153,000–$168,000** for single filers and **$242,000–$252,000** for married filing jointly. See the [Roth IRA contribution and income limits](https://savingtoinvest.com/roth-ira-contribution-and-income-limits-plus-conversion-or-rollover-rules/) post for the full phase-out rules, conversion options, and [key retirement ages for 401(k), IRA, and Social Security](https://savingtoinvest.com/retirement-ages-and-eligilbility-rules-for-receiving-401k-ira-and-social-security-beneifts/) that govern withdrawals. ## 3. Use Charitable Giving Strategically (QCDs for 70½+) Charitable donations are deductible if you itemize — but most people don’t. One strategy that works regardless of whether you itemize: **bunching** two years of planned donations into a single year to push your itemized deductions above the standard deduction threshold for that year, then taking the standard deduction the next. If you’re 70½ or older, a **Qualified Charitable Distribution** is one of the best moves in tax planning — and unlike a bunched donation, it doesn’t require itemizing at all. You can transfer up to **$111,000** directly from your IRA to a qualified charity in 2026 (up from $108,000 last year). The distribution counts toward your Required Minimum Distribution and is excluded from your taxable income entirely — unlike a regular withdrawal followed by a charitable gift. For married couples, each spouse can do up to $111,000 from their own IRA, for a combined $222,000. Keep receipts and documentation for all donations. Donations must be made by December 31. ## 4. Take Advantage of the Higher SALT Deduction This is one of the biggest changes for itemizers in years. The One Big Beautiful Bill ([OBBB](https://savingtoinvest.com/reconciling-trumps-big-beautiful-bill-bbb/)), signed in July 2025, raised the state and local tax (SALT) deduction cap to **$40,000 for 2025** and **$40,400 for 2026** — up from the $10,000 cap that’s been in place since 2017. The cap is per tax return, not per person. Married couples filing jointly share one $40,400 cap; married filing separately splits it to $20,200 each. There’s also an income phase-out: for joint and single filers, the cap begins reducing above **$505,000 in MAGI** for 2026 (reducing by 30 cents per dollar above the threshold, down to a $10,000 floor); for married filing separately, the phase-out starts at $252,500 MAGI with a $5,000 floor. If your state income taxes plus property taxes combined were capped at $10,000 before, you may now be able to deduct significantly more. This makes itemizing more attractive for homeowners in high-tax states — worth running the math before year-end. ## 5. Review Medical and Health Expense Deductions Medical expenses exceeding **7.5% of your adjusted gross income** are deductible if you itemize. (Many older sources say 10% — that was a pre-TCJA rule. The threshold has been 7.5% since 2017 and remains there for 2026.) In practice, most people don’t clear the threshold unless they had significant out-of-pocket costs during the year. But if you’re close, consider whether accelerating elective procedures or dental work into this calendar year would push you over. Health insurance premiums you pay out of pocket (not pre-tax through an employer) also count toward the 7.5% floor. Self-employed individuals can deduct 100% of health insurance premiums as an above-the-line deduction, which is even better — it reduces AGI regardless of itemization. ## 6. Maximize Your HSA If you have a high-deductible health plan (HDHP), an [HSA](https://savingtoinvest.com/hsa-limits-and-tax-rules-how-to-best-utilize-health-savings-accounts/) offers a triple tax advantage: contributions are pre-tax, growth is tax-free, and withdrawals for qualified medical expenses are tax-free. It’s the best tax account most people underuse. The 2026 HSA contribution limit is **$4,400** for self-only coverage and **$8,750** for family coverage. If you’re 55 or older, you can add a $1,000 catch-up contribution. You have until April 15, 2027 to fund your HSA for the 2026 tax year — but you can start now. (The IRS has already released 2027 limits — see the Looking Ahead section below.) *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get notified as we update this page with new figures and strategies throughout the year.* ## 7. Tax-Loss Harvesting Before December 31 Year-end is the best time to review your investment portfolio for positions sitting at a loss. Selling those positions before December 31 lets you [use the losses to offset capital gains](https://savingtoinvest.com/tax-loss-harvesting-by-selling-stocks-and-lowering-your-taxable-income/) you’ve already realized — and if your losses exceed your gains, up to $3,000 can be deducted against ordinary income, with any remaining losses carrying forward to future years. One important rule: the 30-day **wash-sale rule** prevents you from claiming the loss if you buy the same (or substantially identical) security within 30 days before or after the sale. If you still want exposure to that asset class, you can buy a similar-but-not-identical fund immediately, and buy back the original after 31 days. *Example: Lisa realized $12,000 in capital gains selling a stock in March. In December, she has an ETF sitting at a $9,000 loss. By selling it, she offsets $9,000 of her gains, cutting her taxable capital gains to $3,000. She immediately reinvests in a comparable ETF to maintain her allocation.* ## 8. Time Your Income and Deductions The most flexible year-end lever is controlling when income hits and when deductions are claimed. If you expect to be in a lower tax bracket next year — say you’re retiring or have a major expense coming — it can make sense to defer income (bonus, freelance invoice) into January and pull deductions into December. Run the numbers against the current [federal tax brackets](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/) before deciding which way to shift. Conversely, if rates are going up or you expect higher income next year, accelerating income now can save taxes. This is particularly relevant for freelancers and business owners who have some control over invoicing timing. Also worth checking: Alternative Minimum Tax (AMT) exposure. Some deductions that lower regular tax can trigger AMT. If your income is in the AMT range (generally $150,000+ for individuals), run an AMT calculation before making large deduction moves. ## 9. Dependent Care FSA and Child Care Credit If your employer offers a Dependent Care [Flexible Spending Account](https://savingtoinvest.com/flexible-and-dependent-care-spending-accounts-fsa-contribution-limits/), you’re contributing pre-tax money to cover childcare costs. The maximum jumped to **$7,500 per household** for 2026 under the One Big Beautiful Bill — the first increase since 1986, up from $5,000. The cap is per household on a joint return, not per spouse; married filing separately is limited to $3,750 each. Unused funds typically expire at year-end (check your plan’s grace period), and most plans only let you raise your election mid-year after a qualifying life event — not simply because the annual limit went up — so if you want the higher amount, check with HR before your open enrollment window closes. Even without an FSA, the **Child and Dependent Care Credit** is available for qualifying childcare expenses. The credit ranges from 20%–35% of up to $3,000 in expenses for one child or $6,000 for two or more, depending on your income. See the [Child Tax Credit guide](https://savingtoinvest.com/child-and-kiddie-tax-credit-and-income-thresholds/) for the current CTC amounts, which were also updated under OBBB. ## 10. American Opportunity Tax Credit (AOTC) If you have a dependent in the first four years of college, the [AOTC](https://savingtoinvest.com/tax-breaks-parents-lose-when-children-grow-up-so-take-advantage-of-them-now/) can provide a credit of up to **$2,500 per student** per year (100% of the first $2,000 in qualified expenses, then 25% of the next $2,000). Up to 40% ($1,000) is refundable. Income limits for 2026: the full credit is available with MAGI up to **$80,000 for single filers** and **$160,000 for married filing jointly**. It phases out completely at $90,000 (single) and $180,000 (MFJ). Make sure tuition payments for January 2027 semester classes (often due in December) are paid by December 31 — those expenses can count toward the 2026 credit. ## 11. Give Annual Gifts to Family The annual gift tax exclusion for 2026 is **$19,000 per recipient**. That means you can give $19,000 to as many people as you want — children, grandchildren, anyone — without filing a gift tax return or using up any of your lifetime exemption. Married couples can combine for **$38,000 per recipient**. For gifts to count in 2026, checks need to clear by December 31. Start early enough that nothing gets delayed by holiday mail or banking slowdowns. This isn’t a tax deduction for the giver — but it’s a useful estate planning and wealth transfer tool if you’re trying to reduce a taxable estate over time. ## 12. Fund or Superfund a 529 Plan A 529 education savings plan grows tax-free and withdrawals for qualified education expenses are tax-free. Many states also offer a state income tax deduction or credit for contributions — which does reduce your state taxes. One 2026-eligible strategy: **superfunding**, which lets you contribute up to five years’ worth of gifts ($95,000 per beneficiary, or $190,000 for married couples) in a single year and elect to spread it across five years for gift tax purposes. No gift tax return needed on an annual $19,000 contribution. SECURE 2.0 also created a new option: unused 529 funds can now be rolled into a Roth IRA for the beneficiary after 15 years (subject to annual IRA contribution limits and a $35,000 lifetime cap). This reduces the risk of overfunding. ## 13. Educator Expense Deduction ($350) K-12 teachers, instructors, counselors, and aides can deduct up to **$350 in out-of-pocket classroom expenses** directly on their tax return for 2026 — no itemizing required, up from $300 last year under the One Big Beautiful Bill. If you’re a married educator filing jointly and both spouses qualify, the combined limit is $700. Several tax firms are reading the new law as also allowing unreimbursed classroom expenses above that $350 to be claimed as an additional itemized deduction — the IRS hasn’t issued clarifying guidance on this second tier yet, so if your out-of-pocket costs run well above $350, it’s worth checking with a tax preparer before assuming you can claim the excess. Qualifying expenses include books, supplies, computer equipment, COVID protective items, and professional development courses. ## 14. Mortgage Interest, Refinancing Points, and PMI If you itemize, mortgage interest on a primary and secondary residence (up to $750,000 in loan principal) is still deductible. With the higher SALT cap in 2026, more homeowners may find it worthwhile to itemize rather than take the standard deduction. If you refinanced your mortgage, the points you paid are deductible — but spread over the life of the loan rather than all at once. For a 30-year refinance, that’s 1/30th per year. Small amount annually, but don’t leave it on the table. There’s also a restored deduction worth checking: the One Big Beautiful Bill permanently reinstated the **mortgage insurance premium (PMI) deduction** for premiums paid starting January 1, 2026, after it had lapsed. It covers conventional PMI, FHA mortgage insurance, VA funding fees, and USDA guarantee fees on a primary or one designated second home — but you must itemize, and it phases out steeply: the deduction starts reducing at $100,000 AGI ($50,000 married filing separately) and disappears entirely at $110,000 AGI ($55,000 MFS). ## 15. Federal Energy Credits Expired — Check Your State The federal **Energy Efficient Home Improvement Credit (Section 25C)** expired on December 31, 2025. Under OBBB, what had been an enhanced 30% credit (up to $3,200/year) for heat pumps, insulation, windows, and HVAC was terminated before the 2026 tax year. If you’re planning energy-efficient home improvements in 2026, there’s no federal tax credit waiting for you. However, many states offer their own energy incentive programs — rebates, credits, or property tax exemptions. Check your state energy office or the [ENERGY STAR federal tax credit page](https://www.energystar.gov/about/federal-tax-credits) for state-level programs. *Example: Mark replaced his furnace in February 2026. He expected to claim a federal credit based on guidance he’d read in 2024. The federal 25C credit no longer applies to 2026 installations — but his state offers a $500 rebate through its utility program, which he can still claim.* ## 16. New OBBBA Senior Deduction ($6,000) If you or your spouse turned 65 this year (or already are), don’t overlook the One Big Beautiful Bill’s new temporary deduction of up to **$6,000 per qualifying senior** ($12,000 for a married couple where both spouses qualify), available for 2025 through 2028. It’s available whether or not you itemize, and it stacks on top of the regular standard deduction and the existing extra standard deduction for age 65+. It does phase out with income: for single filers it starts reducing above $75,000 MAGI and is gone entirely at $175,000; for married filing jointly, the range is $150,000 to $250,000. Factor this into your year-end withholding or estimated payment planning if you or your spouse crossed 65 this year — full details, including the phase-out math, are in my [$6,000 senior deduction guide](https://savingtoinvest.com/the-6000-senior-deduction-see-if-you-qualify/). --- ## Common Issues to Watch Out For A few patterns I see trip people up at year-end: **Assuming you’ll itemize when you won’t.** Most people — even homeowners with a mortgage — don’t itemize because the standard deduction is so high. Run a quick estimate of your itemized deductions before assuming charitable gifts, PMI, or medical expenses will help you. **Assuming a QCD only helps if you itemize.** It doesn’t. A Qualified Charitable Distribution is excluded from taxable income regardless of your filing method — it’s one of the few moves on this list that helps even the roughly 90% of filers who take the standard deduction. **Assuming the SALT cap is per person, not per return.** A married couple filing jointly gets one $40,400 cap in 2026, not two. Married filing separately splits it to $20,200 each — run both scenarios before assuming MFS doubles your benefit. **Trying to bump up a Dependent Care FSA election mid-year for the new $7,500 limit.** Most plans only allow a change after a qualifying life event (new child, daycare cost change, and similar). The higher annual limit alone usually isn’t enough to reopen your election outside open enrollment. **Missing the 401(k) contribution window.** Payroll changes for December can be tricky — many employers have cutoffs for contribution changes in mid-December to ensure they process before December 31. Don’t wait until the last week. **Ignoring the wash-sale rule.** Tax-loss harvesting is a legitimate strategy, but buying back the same fund within 30 days voids the loss. I get questions about this one every January when people discover their December trade doesn’t count. **Gifting appreciated stock instead of cash to charity.** If you donate cash and also have appreciated stock, consider donating the stock instead. You avoid capital gains on the appreciation AND get the charitable deduction at the full current value. **Forgetting to update HSA investments.** A lot of people fund an HSA and leave it in a cash position earning nearly nothing. Most HSA providers let you invest the balance once it clears a threshold ($1,000–$2,000). The triple tax advantage is only fully realized if the money is actually invested. --- ## Looking Ahead: 2027 For 2027, the main things I’ll be watching: **HSA limits are already out.** The IRS has confirmed 2027 HSA contribution limits at **$4,500 for self-only coverage and $9,000 for family coverage** (IRS Rev. Proc. 2026-24), both modest increases over 2026. If you’re on an HDHP, you can start planning your 2027 contribution increase now. **Retirement contribution limit adjustments** — the IRS typically releases the following year’s 401(k)/IRA limits in October or November. Given that inflation has been running in the 2–3% range, modest increases to the $24,500 401(k) limit are likely (the IRS rounds to the nearest $500), though not guaranteed. The $7,500 IRA limit may also tick up. **SALT cap inflation indexing** — the $40,400 cap for 2026 indexes at 1% annually through 2029 under OBBB, so expect approximately $40,800 for 2027. **QCD limits** — also inflation-indexed; currently at $111,000 for 2026, likely to increase modestly. **Any new legislation** — the 2027 federal budget process could bring additional changes, and the IRS has not yet issued clarifying guidance on the educator-expense itemized question noted in move #13. I’ll update this page when official figures and guidance are released. Frequently Asked Questions QIs the Section 25C energy home improvement credit available for 2026? ANo. The federal Energy Efficient Home Improvement Credit (Section 25C) expired on December 31, 2025. The One Big Beautiful Bill (OBBB), signed in July 2025, accelerated the end of this credit - it had previously been scheduled to run through 2032. For 2026 installations, no federal 25C credit applies. Check your state energy office for state-level rebates and incentives that may still be available. QWhat is the SALT deduction cap for 2026, and is it per person or per return? AThe SALT (state and local tax) deduction cap is $40,400 for 2026, up from $10,000 under the previous TCJA rules. This increase was made by the One Big Beautiful Bill (OBBB) and applies for tax years 2025-2029. The cap is per tax return: married couples filing jointly share one $40,400 cap, while married filing separately splits it to $20,200 each. The cap phases down for taxpayers with MAGI above $505,000 in 2026 ($252,500 for married filing separately), with a $10,000 floor ($5,000 MFS). To claim the deduction, you must itemize. QWhat is the QCD limit for 2026, and do I need to itemize to claim it? AThe Qualified Charitable Distribution limit is $111,000 per individual for 2026, up from $108,000 in 2025. SECURE 2.0 indexed the limit for inflation. You do not need to itemize to benefit - a QCD is excluded from your taxable income entirely, so it helps even if you take the standard deduction. Married couples where each spouse has their own IRA can each contribute up to $111,000, for a combined $222,000. You must be at least 70½ to make a QCD. QWhat is the annual gift tax exclusion for 2026? AThe annual gift tax exclusion for 2026 is $19,000 per recipient. You can give $19,000 to as many individuals as you want without filing a gift tax return. Married couples can give $38,000 per recipient by combining their exclusions ('gift splitting'). Gifts must clear by December 31 to count for the 2026 tax year. QWhat is the medical expense deduction threshold? AMedical expenses exceeding 7.5% of your adjusted gross income (AGI) are deductible if you itemize. Some older sources still say 10% - that was an older rule. The 7.5% threshold has been permanent since the Tax Cuts and Jobs Act and remains in effect for 2026. Health insurance premiums you pay directly (not pre-tax through an employer) count toward the threshold. QWhat's the new Dependent Care FSA limit for 2026? AThe Dependent Care FSA limit rose to $7,500 per household for 2026, up from $5,000 - the first increase since 1986 - under the One Big Beautiful Bill. The cap is per household on a joint return, not per spouse; married filing separately is limited to $3,750 each. Most plans only let you change your contribution election mid-year after a qualifying life event, so check with HR before assuming you can raise an existing election just because the annual limit went up. QShould I maximize my 401(k) or IRA first for year-end tax savings? AFor immediate year-end impact, prioritize your 401(k) - contributions must be made by December 31 through payroll. IRA contributions have until April 15, 2027, so there's more time. In terms of tax impact, both reduce taxable income (for traditional accounts), but 401(k) limits are much higher ($24,500 vs. $7,500). If you can only do one, max the 401(k) first if your plan offers good low-cost fund options. QWhat year-end tax moves work even if I take the standard deduction? ASeveral strategies work regardless of whether you itemize: maximizing pre-tax 401(k) contributions, funding an HSA, making QCDs from an IRA (for those 70½+), tax-loss harvesting in a taxable brokerage account, funding a 529 for the state deduction, using a Dependent Care FSA, and - if you're 65 or older - the new $6,000 OBBBA senior deduction. Charitable donations, mortgage interest, and medical expenses only provide a direct benefit if you itemize. **Categories:** Taxes and Retirement **Tags:** 2011, 2012, Credits, Deductions, Filing, taxes, year end --- ### [2026-2027 Roth IRA Contribution and Income Limits — Plus Catch-Up and Conversion Rules](https://savingtoinvest.com/roth-ira-contribution-and-income-limits-plus-conversion-or-rollover-rules/) **Published:** October 18, 2017 **Author:** Andy **Content:** ### Key Takeaways - The 2026 Roth IRA contribution limit is $7,500 — up from $7,000 in 2025. - If you're 50 or older, you can contribute up to $8,600 (including the $1,100 catch-up). - The catch-up amount is now $1,100 — up from $1,000 — because SECURE 2.0 indexed it for inflation. - Income phase-out for single filers: $153,000–$168,000. For married filing jointly: $242,000–$252,000. - If your income is too high to contribute directly, a Backdoor Roth IRA conversion may still be an option. The Roth IRA contribution limit for 2026 is **$7,500** — up from $7,000 in 2025. If you’re 50 or older, you can add a **$1,100 catch-up contribution** (now indexed for inflation under SECURE 2.0), bringing your total to **$8,600**. The income phase-out ranges have also shifted up slightly for 2026. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates.* Covered in this Article: [Toggle](#) - [2026 Roth IRA Limits at a Glance](#2026_Roth_IRA_Limits_at_a_Glance) - [2026 Roth IRA Income Limits](#2026_Roth_IRA_Income_Limits) - [Roth IRA Rules You Should Know](#Roth_IRA_Rules_You_Should_Know) - [Real-World Examples](#Real-World_Examples) - [What If You Earn Too Much?](#What_If_You_Earn_Too_Much) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Withdrawals and the 5-Year Rule](#Withdrawals_and_the_5-Year_Rule) ## 2026 Roth IRA Limits at a Glance Here’s the full picture for 2026 — and how it compares to recent years: Tax YearContribution LimitCatch-Up (age 50+)Total if 50+2026$7,500$1,100$8,6002025$7,000$1,000$8,0002024$7,000$1,000$8,0002023$6,500$1,000$7,5002022$6,000$1,000$7,0002021$6,000$1,000$7,000 The catch-up bump to $1,100 is new in 2026 — it’s the first time the catch-up amount has increased because the SECURE 2.0 Act tied it to inflation adjustments starting in 2024. [Click here for the full set of 401(k), Roth IRA and Traditional IRA contribution limits](https://savingtoinvest.com/401k-ira-and-roth-ira-contribution-and-income-limits/) ## 2026 Roth IRA Income Limits Roth IRA eligibility phases out at higher incomes. Here’s where the 2026 ranges land: Filing StatusPhase-Out BeginsPhase-Out Ends (no direct contribution)Single / Head of Household$153,000$168,000Married Filing Jointly$242,000$252,000Married Filing Separately$0$10,000 If your MAGI falls within the phase-out range, your contribution limit is reduced proportionally. Above the upper limit, you can’t contribute directly to a Roth IRA at all. If you file as married filing separately and lived with your spouse at any point during the year, the phase-out kicks in immediately at $0. For comparison, here are the phase-out ranges for recent years: Tax YearSingle Phase-OutMFJ Phase-Out2026$153,000 – $168,000$242,000 – $252,0002025$150,000 – $165,000$236,000 – $246,0002024$146,000 – $161,000$230,000 – $240,0002023$138,000 – $153,000$218,000 – $228,0002022$129,000 – $144,000$204,000 – $214,000 These are based on your **modified adjusted gross income (MAGI)** — which for most people is close to AGI but can differ if you have things like foreign income or student loan interest deductions. Things can shift if the IRS adjusts these limits again for inflation next year. I’ll update this page when that happens — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ### What I’m Watching for 2027 The IRA contribution limit moves in $500 increments. At $7,500, it would need roughly $250 in additional inflation adjustment to bump to $8,000. Based on current CPI trends that’s possible but not certain for 2027 — so I’d say the limit is a coin flip between staying at $7,500 and moving to $8,000. The catch-up, now indexed via SECURE 2.0, could tick from $1,100 to $1,200 if inflation keeps running. Phase-out ranges have been moving up $6,000–$10,000 per year. My rough projection for 2027: single filers in the $160,000–$175,000 range, married filing jointly around $250,000–$260,000. Official IRS guidance for 2027 typically comes out in October or November 2026. ## Roth IRA Rules You Should Know **Age:** There’s no age limit to contribute to a Roth IRA. As long as you have earned income and fall within the income limits, you can contribute at any age — including in retirement if you’re still working. **Earned income required:** Contributions can’t exceed your taxable compensation for the year. If you earned $4,000 in 2026, your Roth IRA contribution cap is $4,000 — not $7,500. **Spousal IRA:** If you’re married, a non-working spouse can contribute to a Roth IRA based on the working spouse’s income. The combined contributions can’t exceed the household’s earned income, and both accounts have their own $7,500 limit. **Contribution deadline:** You have until Tax Day (April 15, 2027) to make your 2026 Roth IRA contribution. This gives you extra time to figure out whether you qualify based on your full-year income. For what it’s worth, I make mine in January each year rather than waiting — every extra month of tax-free compounding adds up more than people expect when you stretch it over 20+ years. **Roth IRA vs Traditional IRA:** Roth contributions are after-tax, so your withdrawals in retirement are tax-free. Traditional IRA contributions may be deductible depending on your income and whether you have a workplace plan — but withdrawals are taxed as ordinary income. For most people who expect to be in the same or higher tax bracket in retirement, the Roth tends to win. But if you need the deduction now, traditional can make sense. **Contribution limit is shared across IRAs:** The $7,500 cap applies to all your IRAs combined — Roth and traditional. You can split between them however you like, but the total can’t exceed $7,500 ($8,600 if 50+). ## Real-World Examples **Example 1 — Partial contribution in the phase-out range:** Sarah is single and earns $158,000 in 2026. The phase-out range runs $153,000–$168,000 — a $15,000 window. She’s $5,000 into the phase-out. Her contribution is reduced proportionally: $5,000 / $15,000 = 33% reduction. So instead of contributing $7,500, Sarah’s limit is roughly **$5,000**. She can still contribute — just not the full amount. If she’s unsure about her final income until late in the year, she might contribute the full $7,500 early and then adjust or withdraw the excess before the tax deadline. **Example 2 — The spousal IRA play:** Mark works full-time and earns $120,000. His wife Lisa stays home with their kids and has no earned income. Under IRS spousal IRA rules, Lisa can contribute up to $7,500 to her own Roth IRA in 2026 — based on Mark’s income. They’re filing jointly and are well under the $242,000 MFJ phase-out threshold. Their combined household Roth contributions for 2026: $15,000 ($7,500 each). Over 20 years, that compounds into a meaningful tax-free retirement cushion for both of them. ## What If You Earn Too Much? If your income is above the Roth IRA phase-out, you have options. A reader emailed me last year after trying a backdoor Roth and ending up with an unexpected tax bill — turned out he had a rollover IRA from an old job he’d forgotten about, and the pro-rata rule hit him hard. It’s a common trap, so worth understanding before you try it. The most common approach is the **Backdoor Roth IRA**: contribute to a Traditional IRA (no income limit for contributions, just deductibility), then convert it to a Roth. There’s no income limit on Roth conversions. This works cleanly if you don’t have other pre-tax IRA money — if you do, the pro-rata rule kicks in and can complicate the math. For high-earning married couples, a **Mega Backdoor Roth** through a 401(k) plan is another route — though it requires your plan to allow after-tax contributions and in-service distributions or rollovers. If you converted a Traditional IRA to a Roth IRA, you’ll report that conversion as income in the year it happens. The 10% early withdrawal penalty doesn’t apply to conversions themselves, but there’s a 5-year holding period on converted amounts if you’re under 59½. ## Common Issues to Watch Out For These are the Roth IRA mistakes I see come up most frequently — some have real tax consequences if you don’t catch them in time. **Over-contributing when your income is near the phase-out.** If your income ends up higher than expected and pushes you into the phase-out range, any excess Roth contribution is subject to a **6% excise tax per year** until it’s corrected. The fix: withdraw the excess plus earnings before your tax filing deadline (including extensions). Many people don’t realize this and let it sit — which means the penalty compounds year after year. **The pro-rata rule kills the backdoor Roth for many people.** If you do a backdoor Roth (contribute to a traditional IRA, then convert), but you also have other pre-tax IRA money sitting around — a rollover IRA from an old 401(k), for example — the IRS applies the pro-rata rule. You can’t just convert the new non-deductible contribution cleanly; you have to convert a proportional slice of all your IRA money. This can create an unexpected tax bill. If you’re planning a backdoor Roth, check your other IRA balances first. **Confusing the two separate 5-year clocks.** There’s one 5-year rule for contributions (straightforward — your earnings need 5 years and age 59½ for penalty-free withdrawal). But there’s a separate 5-year clock for Roth conversions. Each conversion starts its own 5-year waiting period before the converted amount can be withdrawn penalty-free. If you convert money and then need it before 5 years, you’ll owe the 10% early withdrawal penalty on the converted amount even if you’re over 59½. **Assuming you can’t contribute because you have a 401(k).** A 401(k) at work doesn’t disqualify you from a Roth IRA — only your income does. I get this question a lot. As long as your MAGI is under the phase-out threshold, you can contribute to both in the same year. **Waiting until April to contribute for last year.** Roth IRA contributions for 2026 can be made any time up to April 15, 2027. But every month you wait is a month of tax-free compounding you’re missing. Contributing in January rather than April adds over three additional months of growth, compounded over decades. If you can contribute early in the year, it’s worth it. ## Withdrawals and the 5-Year Rule Roth IRA contributions (not earnings) can be withdrawn any time without tax or penalty — you already paid taxes going in. Earnings are different. To withdraw **earnings** tax-free, two conditions must both be met: 1. The account must be at least 5 years old (starting January 1 of the year you first contributed) 2. You must be 59½ or older (or meet another qualifying exception like first-time home purchase up to $10,000, disability, or death) If you’re under 59½ and your account is under 5 years old, earnings withdrawn are taxed as ordinary income plus a 10% penalty. One more Roth advantage that’s worth noting: **no required minimum distributions (RMDs)**. Unlike a traditional IRA or 401(k), a Roth IRA never forces you to take withdrawals during your lifetime. That makes it useful as a generational wealth transfer vehicle or a hedge against future tax rate increases. Frequently Asked Questions QWhat is the Roth IRA contribution limit for 2026? AThe 2026 Roth IRA contribution limit is $7,500. If you're 50 or older, you can contribute an additional $1,100 catch-up for a total of $8,600. QWhat are the income limits for a Roth IRA in 2026? AFor 2026, the phase-out range is $153,000–$168,000 for single filers and $242,000–$252,000 for married filing jointly. Above those ranges, you can't contribute directly to a Roth IRA. QWhy did the catch-up contribution increase to $1,100 in 2026? AUnder the SECURE 2.0 Act, the IRA catch-up contribution limit is now indexed for inflation starting in 2024. For 2026, the IRS adjusted it from $1,000 to $1,100. It will continue to be adjusted in future years as inflation warrants. QCan I contribute to a Roth IRA if I have a 401(k) at work? AYes. Having a 401(k) doesn't affect your ability to contribute to a Roth IRA — only your income does. The Roth IRA income limits apply regardless of whether you have a workplace plan. Your 401(k) contributions are separate and have their own limits. QWhat is a Backdoor Roth IRA and who should consider it? AA Backdoor Roth IRA is a strategy where you contribute to a non-deductible Traditional IRA and then convert it to a Roth. There's no income limit on conversions, so high earners above the Roth IRA phase-out can use this workaround. It's cleanest if you have no other pre-tax IRA money — otherwise the pro-rata rule can cause complications. QWhen can I withdraw from my Roth IRA without penalty? AYour contributions (not earnings) can be withdrawn any time, penalty-free. Earnings can be withdrawn tax-free and penalty-free once you're 59½ and the account has been open at least 5 years. Early withdrawal of earnings may trigger income tax plus a 10% penalty. **Categories:** Taxes and Retirement **Tags:** 2010, Convert, IRA, Limits, retirement, Roth IRA, taxes --- ### [2027 Pay Raise for 2026 Military Charts — Latest Updates and News](https://savingtoinvest.com/military-pay-charts-basic-pay-tables-raise/) **Published:** December 10, 2025 **Author:** Andy **Content:** ### Key Takeaways - Trump's August 26, 2026 letter set the 2027 military raise at 7%-5%, tiered by rank. - The House already passed this tiered raise in its FY2027 NDAA on July 22, 2026, 216-212. - The Senate's flat 3.6% counter-proposal remains stalled after a failed July 14, 2026 cloture vote. - The 2026 military raise was confirmed at 3.8% for all pay grades under the $900 billion NDAA. For 2027, President Trump has used his own statutory authority to set the tiered military pay raise the House already passed — 7% for junior enlisted, scaling down to 5% for senior officers — even though the Senate’s NDAA hasn’t moved. That doesn’t finalize the number (Congress can still supersede it with a signed NDAA), but it makes the tiered raise the default outcome for January 2027 rather than one of two competing proposals. (For reference, the confirmed 2026 raise was 3.8% for all pay grades.) Covered in this Article: [Toggle](#) - [2027 Military Pay Raise: Trump Sets 7-6-5% by Presidential Authority, NDAA Still Pending](#2027_Military_Pay_Raise_Trump_Sets_7-6-5_by_Presidential_Authority_NDAA_Still_Pending) - [The August 26 Letter: What Changed](#The_August_26_Letter_What_Changed) - [What Each Scenario Would Mean in Annual Base Pay](#What_Each_Scenario_Would_Mean_in_Annual_Base_Pay) - [Key Dates for 2027 Military Pay](#Key_Dates_for_2027_Military_Pay) - [2026 Military Pay Charts: 3.8% Raise Confirmed](#2026_Military_Pay_Charts_38_Raise_Confirmed) - [2025 Military Pay Chart: 4.5% (Plus 10% for Junior Enlisted)](#2025_Military_Pay_Chart_45_Plus_10_for_Junior_Enlisted) - [2024 Military Pay Chart: 5.2%](#2024_Military_Pay_Chart_52) - [2023 Military Pay Chart: 4.6%](#2023_Military_Pay_Chart_46) - [2022 Military Pay Charts: 2.7%](#2022_Military_Pay_Charts_27) - [2021 Military Pay Charts: 3.0%](#2021_Military_Pay_Charts_30) - [Military Pay Raise History](#Military_Pay_Raise_History) ## 2027 Military Pay Raise: Trump Sets 7-6-5% by Presidential Authority, NDAA Still Pending **Status as of August 28, 2026: Tiered raise set as the default, but not yet locked in by law.** In an August 26, 2026 letter to Congress, President Trump exercised his authority under 37 U.S.C. 1009(e) to set the 2027 military pay raise at 7% (E-5 and below), 6% (E-6 through O-3), and 5% (O-4 and above), effective January 1, 2027. The House already passed this structure in its NDAA (H.R. 8800, 7/22/26); the Senate’s flat 3.6% version (S. 4784) remains stalled. Congress could still supersede the proclamation with a signed NDAA before year-end, but as of this letter, the tiered raise is the operative rate. The Trump administration’s FY2027 [defense budget request](https://www.defense.gov/News/Releases/) proposed a tiered pay raise for military members — the largest increases going to junior enlisted troops who face the greatest financial pressure: - **E-5 and below**: 7% pay raise - **E-6 through O-3**: 6% pay raise - **O-4 and above**: 5% pay raise The House Armed Services Committee embraced the tiered structure, and on **July 22, 2026 the full House passed its FY2027 NDAA (H.R. 8800) in a narrow 216-212 vote**, authorizing $1.15 trillion in defense spending and keeping the tiered raise intact. The reasoning behind the tiers: junior enlisted members in the barracks forego housing allowances and rely on military dining — a materially different financial situation than senior officers. The [Senate Armed Services Committee rejected the tiered approach](https://federalnewsnetwork.com/congress/2026/06/senate-ndaa-rejects-white-houses-tiered-military-pay-raise-proposes-3-6-increase/) and proposed a **flat 3.6% raise for all ranks** instead in its version, S. 4784. That 3.6% figure isn’t arbitrary — it’s the automatic floor set by the Employment Cost Index formula written into [37 U.S.C. 1009](https://uscode.house.gov/view.xhtml?req=granuleid:USC-1999-title37-section1009&num=0&edition=1999), which applies by default if no one acts to change it. The Senate’s reasoning, outlined in the committee’s NDAA summary, is that the 14.5% cumulative raise junior enlisted received in 2025 already moved them well above the 90th percentile of comparable civilian pay — as confirmed by the Department of Defense’s [14th Quadrennial Review of Military Compensation](https://www.armed-services.senate.gov/imo/media/doc/fy2027%5Fndaa%5Fexsum.pdf). Layering an additional 7% on top of that, the Senate argued, would distort the pay structure and be difficult to sustain. Historically, the Senate has also rejected large tiered proposals — in 2024 they pushed back on a 19.5% House proposal for junior enlisted, with the final 2025 NDAA landing at 14.5% cumulative for E-1 through E-4. But the pay debate was overtaken by a bigger procedural fight: on **July 14, 2026, the Senate failed to invoke cloture on the motion to proceed to S. 4784**, 50-46 — short of the 60 votes needed, and largely along party lines. Democrats blocked the vote over provisions unrelated to pay, including the bill’s stance on the ongoing conflict with Iran and provisions deepening U.S.-Israeli military and intelligence cooperation. Until the Senate passes its own version, formal House-Senate conference negotiations on pay (and everything else in the bill) can’t begin. ### The August 26 Letter: What Changed Section 1009 of Title 37 gives the President authority to set military basic pay increases directly, and the 3.6% ECI-based figure only applies automatically if the President doesn’t act. In his August 26, 2026 letter — the same one that confirmed the civilian pay freeze — Trump exercised that authority under **1009(e)** to formally set the 2027 raise at 7% for E-1 through E-5, 6% for E-6 through O-3, and 5% for O-4 and above, “consistent with my Fiscal Year 2027 Budget.” He separately set a 3.6% raise, under 1009(c), for uniformed service members outside the Armed Forces (such as NOAA Corps and Public Health Service Commissioned Corps officers). This doesn’t end the legislative fight — Congress can still pass a differing NDAA and have the President sign it into law before year-end, which would supersede the proclamation. But it does mean that if the Senate stall drags past December without a reconciled bill, the tiered 7-6-5% raise (not the 3.6% ECI floor) is what takes effect by default. That’s a meaningful shift in leverage toward the House’s position. Both chambers’ bills also increase special and incentive pay: aviator incentive pay up to $60,000/year (from $50,000), hostile fire pay $450 → $600/month, and imminent danger pay $275 → $400/month. Those provisions still require a signed NDAA — the president’s pay proclamation only covers basic pay. ### What Each Scenario Would Mean in Annual Base Pay The table below shows approximate annual pay impact at key grades under both figures, using [DFAS 2026 base pay figures](https://www.dfas.mil/MilitaryMembers/payentitlements/Pay-Tables/Basic-Pay/) (under 2 years service) as the baseline. Does not include BAH, BAS, or other allowances. Pay Grade2026 Annual BaseSenate/ECI Floor (3.6%)Presidential TierTier AmountE-1~$24,400~$25,2797%~$26,108E-3~$27,864~$28,8677%~$29,815E-5~$36,522~$37,8377%~$39,079E-6~$44,724~$46,3336%~$47,407O-1~$43,152~$44,7056%~$45,741O-3~$70,068~$72,5906%~$74,272O-4~$82,656~$85,6315%~$86,789O-6~$115,560~$119,7005%~$121,338 *Approximate figures based on DFAS 2026 base pay tables. Actual amounts vary by years of service. See [dfas.mil](https://www.dfas.mil/MilitaryMembers/payentitlements/Pay-Tables/) for exact figures.* For comparison, civilian federal employees on the GS pay scale face a **confirmed 0% freeze** in 2027, set in the same August 26 letter — see [the full 2027 GS pay raise breakdown](https://savingtoinvest.com/federal-employee-gs-pay-chart-and-raise/) for details on the civilian side of this divide. **One thing that trips up a lot of new service members:** every figure in the tables on this page (and on DFAS’s own pay tables) is a *monthly* amount — but you’re actually paid twice a month, not once. Mid-month pay lands around the 15th and end-of-month pay lands around the last business day (or the 1st of the following month), and each of those two paychecks is roughly half your monthly base pay, before BAH and BAS get added on top. If your deposit looks like “half” of the chart number, that’s expected — not a shortage. Your LES (Leave and Earnings Statement) breaks out mid-month and end-of-month pay separately if you want to check the math. ### Key Dates for 2027 Military Pay - **July 14, 2026**: Senate cloture vote to open NDAA floor debate fails, 50-46 (over Iran/Israel provisions, not pay). - **July 22, 2026**: House passes its FY2027 NDAA (H.R. 8800), 216-212, keeping the tiered 5–7% raise. - **August 26, 2026**: President Trump’s alternative pay plan letter sets the 7-6-5% tiered raise by proclamation under 37 U.S.C. 1009(e), making it the default rate absent a superseding NDAA. - **Pending**: Senate must pass its own NDAA (or a revised version) before a House-Senate conference on pay — and the special/incentive pay provisions in both bills — can formally proceed. - **Fall/Winter 2026**: Conference committee, once seated, reconciles remaining differences between the House and Senate bills. - **December 2026** (target): NDAA signed into law, or the presidential proclamation stands by default if Congress hasn’t acted — either way, 2027 pay rates take effect January 1. I’ll update this page when the Senate acts and when a final NDAA is signed (or the proclamation stands by default). [Subscribe here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get notified. --- ## 2026 Military Pay Charts: 3.8% Raise Confirmed The military pay raise for 2026 was confirmed at **3.8%**, aligning with the Employment Cost Index (ECI). It was included in the $900 billion 2026 [National Defense Authorization Act (NDAA)](https://www.congress.gov/bill/119th-congress/senate-bill/2296) signed into law. The raise applied to all pay grades across the Navy, Marine Corps, Army, Air Force, Space Force, and Coast Guard. The 2026 VA disability rates also increased with a 2.6% Cost-of-Living Adjustment. *2026 Military Pay Chart — Under 20 Years of Service (all pay grades):* ![2026 Military Pay Chart Under 20 Years of Service](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2016/09/image-5.png?resize=820%2C524&ssl=1)*2026 Military Pay Chart — 20 or More Years of Service:* ![2026 Military Pay Chart Over 20 Years of Service](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2016/09/image-6.png?resize=820%2C573&ssl=1)--- ## 2025 Military Pay Chart: 4.5% (Plus 10% for Junior Enlisted) The 2025 National Defense Authorization Act included a **4.5%** pay raise for military workers. An additional **10%** increase applied to junior enlisted service members (E-1 through E-4) effective April 1, 2025 — bringing their total 2025 increase to **14.5%**. This two-step structure was designed to address financial hardship for the lowest-paid service members. *2025 Military Pay Chart — Under 20 Years of Service:* ![2025 Military Pay Chart Under 20 Years of Service](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2016/09/image-1.png?resize=820%2C549&ssl=1)*2025 Military Pay Chart — 20 or More Years of Service:* ![2025 Military Pay Chart Over 20 Years of Service](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2016/09/image-2.png?resize=820%2C607&ssl=1)--- ## 2024 Military Pay Chart: 5.2% The **5.2% basic pay** raise in 2024 was one of the largest in the last decade, implemented to combat high inflation. Final pay charts are sourced from DFAS. *2024 Military Pay Chart — Under 20 Years of Service:* ![2024 Military Pay Chart Under 20 Years of Service](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2023/12/image-1.png?resize=820%2C626&ssl=1)*2024 Military Pay Chart — 20 or More Years of Service:* ![2024 Military Pay Chart Over 20 Years of Service](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2023/12/image.png?resize=820%2C699&ssl=1)--- ## 2023 Military Pay Chart: 4.6% *2023 Military Pay Chart — Under 20 Years of Service:* ![2023 Military Pay Chart Under 20 Years of Service](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2022/07/image-4.png?resize=820%2C628&ssl=1)*2023 Military Pay Chart — 20 or More Years of Service:* ![2023 Military Pay Chart Over 20 Years of Service](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2022/07/image-5.png?resize=820%2C681&ssl=1)--- ## 2022 Military Pay Charts: 2.7% Congress approved the FY2022 NDAA confirming a **2.7% pay increase** for active members of the armed forces. It also established a $15 minimum wage for covered service and construction contracts. *2022 Military Pay Chart — Under 20 Years of Service:* ![2022 Military Pay Chart Under 20 Years of Service](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2021/11/image-3.png?resize=820%2C521&ssl=1)*2022 Military Pay Chart — 20 or More Years of Service:* ![2022 Military Pay Chart Over 20 Years of Service](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2022/07/image-3.png?resize=820%2C675&ssl=1)--- ## 2021 Military Pay Charts: 3.0% The 2021 NDAA was passed with a veto-proof majority, confirming a **3.0% pay increase** in line with the latest COLA adjustment. *2021 Military Pay Chart — Under 20 Years of Service:* ![2021 Military Pay Chart Under 20 Years of Service](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2020/12/image-6.png?resize=820%2C634&ssl=1)*2021 Military Pay Chart — Over 20 Years of Service:* ![2021 Military Pay Chart Over 20 Years of Service](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2020/12/2021-Military-Pay-Chart-Greater-than-20-yrs.png?resize=820%2C559&ssl=1)--- ## Military Pay Raise History YearRaiseNotes20277-6-5% (tiered, by proclamation)Trump set the tiered raise under 37 U.S.C. 1009(e) on 8/26/26; House passed the same structure (H.R. 8800, 7/22/26); Senate’s 3.6% flat version (S. 4784) still stalled. NDAA could still supersede.20263.8%All grades. ECI-aligned. $900B NDAA.20254.5% (+10% E1–E4)Junior enlisted received additional 10% from April 1, 202520245.2%Largest raise in several years; inflation-driven20234.6%Reflects high inflation period20222.7%$15 minimum wage added for service contracts20213.0%NDAA passed with veto-proof majority20203.1%Matching ECI benchmark20192.6%Largest in 9 years at the time20182.4%—20172.1%— Frequently Asked Questions QWhat is the 2027 military pay raise? AAs of August 26, 2026, President Trump set the 2027 raise at 7% for E-5 and below, 6% for E-6 through O-3, and 5% for O-4 and above, using his authority under 37 U.S.C. 1009(e). The House had already passed this same tiered structure in its FY2027 NDAA (H.R. 8800, 7/22/26). The Senate's flat 3.6% version (S. 4784) remains stalled after a failed July 14, 2026 cloture vote unrelated to pay. Congress can still supersede the proclamation with a signed NDAA, but as of this letter, the tiered raise is the operative rate for January 2027. QIs the 7-6-5% military raise guaranteed now, or could it still change? AIt's no longer just a proposal - the President has formally set it by proclamation, so it takes effect by default even if the Senate never passes S. 4784. The only way it changes is if Congress passes a different NDAA and the President signs it into law before the raise takes effect January 1, 2027. Given the House already passed the same tiered figures, that scenario would require the Senate to abandon its 3.6% flat-raise position during conference. QHow does the 2027 military raise compare to civilian federal employee pay? AThe contrast is stark. The same August 26, 2026 letter that set the military's tiered raise (5-7% depending on rank) also confirmed a 0% pay freeze for civilian federal employees on the GS pay scale - one of the largest civil-military pay gaps in modern history. QWhat was the 2026 military pay raise? AThe 2026 military pay raise was confirmed at 3.8% for all pay grades. It was signed into law as part of the $900 billion FY2026 National Defense Authorization Act. The raise applied to all branches - Army, Navy, Marine Corps, Air Force, Space Force, and Coast Guard. QWhat was the extra pay for junior enlisted in 2025? AIn addition to the standard 4.5% raise in 2025, junior enlisted service members (E-1 through E-4) received an additional 10% increase effective April 1, 2025, bringing their total 2025 raise to 14.5%. This was designed to address the financial hardship facing the lowest-paid active duty members. QWhere can I find the official military pay tables? AThe Defense Finance and Accounting Service (DFAS) publishes the official pay tables at dfas.mil/MilitaryMembers/payentitlements/Pay-Tables/Basic-Pay/. The DoD also maintains a pay calculator at militarypay.defense.gov. QDoes the military pay raise affect VA disability rates? AVA disability compensation rates are adjusted annually based on the Social Security COLA, not the military pay raise. In 2026, VA disability rates increased by 2.6%, matching the 2026 Social Security COLA. QIs the pay chart showing my pay per paycheck or per month? APer month. Every figure on the pay charts (and on DFAS's official tables) is your total monthly base pay, but you're paid twice a month - once mid-month (around the 15th) and once at end-of-month (around the last business day or the 1st of the next month). Each paycheck is roughly half the chart figure, before BAH and BAS are added. Check your LES (Leave and Earnings Statement) for the exact mid-month/end-of-month breakdown. **Categories:** Government Rebates and Payments **Tags:** 2017, 2019, 2020, 2021, Army, basic pay, Military, Military Pay Scales --- ### [10 Free Ways to Use AI for Managing Your Personal Finances (with Sample Prompts)](https://savingtoinvest.com/10-free-ways-to-use-ai-for-personal-finances-with-sample-prompts/) **Published:** February 13, 2026 **Author:** Andy **Content:** ### Key Takeaways - ChatGPT, Claude, and Gemini's free tiers can build budgets, calculators, and debt payoff plans from a single prompt. - Share only amounts and category names with an AI tool - never account numbers, passwords, or your Social Security number. - AI-related fraud losses hit $893 million across 22,364 complaints in the FBI's latest report - scammers use the same tech you do. - Agentic AI that actually moves money is arriving at major banks in 2026, raising the stakes on both convenience and security. Managing money used to mean hours hunched over a glowing spreadsheet or a kitchen table covered in crumpled receipts. If you are still doing that, you are working harder than you need to. That’s because Artificial Intelligence (AI) has shifted from a futuristic concept to a practical tool that can handle the heavy lifting of your financial life. Whether you’re looking for AI budgeting help, want to track spending patterns, or need financial planning assistance, the free tiers of ChatGPT, Claude, and Gemini can do the heavy lifting. Here are ten ways to put AI to work for your personal finances today — plus, because it matters more in 2026 than ever, the AI-powered scam risks you need to protect yourself against. Covered in this Article: [Toggle](#) - [1. Create a Dynamic Budget Sheet](#1_Create_a_Dynamic_Budget_Sheet) - [2. Build Your Own Personal Finance Calculators](#2_Build_Your_Own_Personal_Finance_Calculators) - [3. Plan a Stress-Free Holiday Budget](#3_Plan_a_Stress-Free_Holiday_Budget) - [4. Simplify Tax Planning and Preparation](#4_Simplify_Tax_Planning_and_Preparation) - [5. Detect Your “Spending Leaks”](#5_Detect_Your_%E2%80%9CSpending_Leaks%E2%80%9D) - [6. Negotiate Your Bills Like a Pro](#6_Negotiate_Your_Bills_Like_a_Pro) - [7. Optimize Your Investment Strategy](#7_Optimize_Your_Investment_Strategy) - [8. Master Your Meal Planning and Grocery Costs](#8_Master_Your_Meal_Planning_and_Grocery_Costs) - [9. Set and Track “SMART” Financial Goals](#9_Set_and_Track_%E2%80%9CSMART%E2%80%9D_Financial_Goals) - [10. Improve Your Financial Literacy](#10_Improve_Your_Financial_Literacy) - [The Flip Side: AI Security Risks You Need to Know in 2026](#The_Flip_Side_AI_Security_Risks_You_Need_to_Know_in_2026) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Final Thoughts on AI and Your Money](#Final_Thoughts_on_AI_and_Your_Money) ## 1. Create a Dynamic Budget Sheet Forget starting with a blank Excel file. You can ask AI to build a custom budget framework based on your specific life situation or a basic spreadsheet you may have been using. For example if you are a freelancer with fluctuating income, the AI can build a “buffer-first” model that accounts for the lean months. > **Try this prompt:** “Create a monthly budget table for a household with $6,000 net income. Include categories for fixed costs, variable spending, and a 20% savings goal. Format it as a list I can copy into Excel.” You can even load your existing [budget spreadsheet](https://savingtoinvest.com/personal-budget-spreadsheet-how-to-make/) and ask most leading AI tools (ChatGPT, Claude or Gemini) to optimize it and suggest ways to improve. The possibilities are limitless and it’s like having your own personal finance guru. ## 2. Build Your Own Personal Finance Calculators Ever wonder how much you could save by [skipping that daily $7 latte](https://savingtoinvest.com/i-am-not-going-to-cut-back-on-my-cup-of/)? Instead of searching for a calculator online, you can ask an AI to build one specifically for your goal and criteria. All for free. It can run the math on compound interest or debt payoff timelines in seconds. > **Try this prompt:** “Act as a financial coach. Create a debt payoff calculator for a $5,000 credit card balance at 19% APR. Show me how much interest I save if I pay $400 a month versus $250.” ## 3. Plan a Stress-Free Holiday Budget Holiday spending is the #1 cause of “financial hangovers” in January. AI can help you break down your total [gift list](https://savingtoinvest.com/how-to-budget-for-the-expensive-holiday-season/) and suggest spending limits for each person. It can even brainstorm gift ideas that fit within those specific price points. > **Try this prompt:** “I have a $800 total budget for the holidays. This needs to cover gifts for 6 people, travel, and food. Create a categorized spending plan so I don’t go over budget.” ## 4. Simplify Tax Planning and Preparation While AI shouldn’t replace a CPA for complex returns, it is incredible for [organizing your tax life](https://savingtoinvest.com/using-ai-to-analyze-your-tax-transcript-for-refund-payment-dates/). It can explain confusing tax codes or help you identify potential deductions you might have missed. Think of it as a pre-tax auditor that gets your paperwork in order before the deadline hits. > **Try this prompt:** “I am a remote worker in Florida. List common tax deductions I should track throughout the year to maximize my refund, including home office and equipment rules. Note anything that changed under the One Big Beautiful Bill for 2026.” ## 5. Detect Your “Spending Leaks” We all have those $10 subscriptions we forgot we signed up for. You can paste a list of your transactions, recent statements or a csv/excel download from your bank’s website into an AI and ask it to find the patterns. It will highlight “leaks” where your money is disappearing without adding value to your life. > **Try this prompt:** “Analyze this list of monthly transactions: \[Paste Text or reference a file you can upload\]. Identify recurring subscriptions and categorize my spending into ‘Needs’ and ‘Wants.’ Highlight any areas where I am overspending.” You may have to prompt it a few more times to refine your search, but once done you can save the search (or as a GEM in Gemini) and rerun the same prompt every few months to repeat the analysis. Think of it like your [financial spring cleaning](https://savingtoinvest.com/financial-spring-cleaning-organize-your/). Strip out account numbers before pasting — categories and amounts are all the AI needs. ## 6. Negotiate Your Bills Like a Pro Did you know most internet and cable providers will lower your bill if you just ask? Most people don’t because they hate the confrontation or don’t know what to say. AI can write a polite, firm negotiation script that uses current market rates to help you get a discount. > **Try this prompt:** “Write a script I can use to call my internet provider. My bill increased by $20 this month. Mention that a competitor is offering a lower rate and I’ve been a loyal customer for 3 years.” ## 7. Optimize Your Investment Strategy Investment jargon can be a massive barrier to building wealth. AI can take complex market reports and summarize them into plain English that a fifth-grader could understand. It helps you understand asset allocation and the risks associated with different investment types. > **Try this prompt:** “Explain the difference between an Index Fund and an ETF in simple terms. Which one is generally better for someone who wants a ‘set it and forget it’ approach to retirement?” ## 8. Master Your Meal Planning and Grocery Costs One of the biggest variable expenses in any household is food. AI can generate a weekly meal plan based on what is already in your pantry to prevent waste. It can also create a grocery list that sticks strictly to a budget you define. > **Try this prompt:** “Create a 5-day meal plan for a family of four with a $150 budget. Focus on healthy, low-prep meals and provide a consolidated grocery list for the items needed.” ## 9. Set and Track “SMART” Financial Goals “I want to save money” is a wish, not a goal. AI can help you turn vague desires into SMART goals (Specific, Measurable, Achievable, Relevant, Time-bound). It can then break that big goal into tiny, manageable weekly tasks. > **Try this prompt:** “I want to save $10,000 for a house down payment in 18 months. Create a month-by-month milestone plan and suggest three lifestyle changes to help me reach this faster.” ## 10. Improve Your Financial Literacy The best investment you can make is in your own knowledge. You can use AI as a 24/7 tutor to explain any concept you don’t understand. Whether it’s “tax-loss harvesting” or “escrow,” AI makes the learning process interactive and fast. > **Try this prompt:** “I keep hearing about ‘High-Yield Savings Accounts.’ Explain how they work, why the rates change, and how they differ from a standard savings account at a big bank.” *I’ll keep updating this list as the tools evolve. [Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates.* ## The Flip Side: AI Security Risks You Need to Know in 2026 The same technology helping you budget is also being weaponized by scammers, and the numbers have gotten serious. The FBI’s Internet Crime Complaint Center isolated 22,364 AI-related complaints with adjusted losses exceeding $893 million in its latest annual report — $632 million from investment fraud alone, plus tens of millions more from business email compromise and deepfaked-interview employment scams. That’s likely an undercount, since many victims never realize AI was involved. Deloitte separately projects generative-AI-enabled fraud losses could reach $40 billion by 2027, up from $12.3 billion in 2023. Here’s what I’d watch for: ## Common Issues to Watch Out For 1. **Voice cloning (“grandparent”) scams.** AI needs only a few seconds of audio — from a voicemail or social media video — to convincingly clone a family member’s voice. If you get an urgent call asking for money, hang up and call the person back on their known number. Consider setting a family “safe word” for real emergencies. 2. **AI-generated photos behind fake relationships.** Romance and “new online friend” scams increasingly use AI-generated profile photos of people who don’t exist, so the person never looks the same twice or reverse-image-searches to someone else’s real identity. If a new online contact’s photos feel a little too polished, or a reverse image search turns up nothing (or turns up someone else entirely), treat it as a scam, not a coincidence. 3. **Remote-access “tech support” scams.** A caller — sometimes with an AI-polished, personalized script — talks a victim through opening a legitimate screen-sharing tool like Microsoft Teams or a remote-access app “to fix a problem,” then uses that access to log into bank accounts directly. No real bank, government agency, or tech company will ever ask you to install screen-sharing software during an unsolicited call. 4. **Deepfake investment pitches.** Scammers use AI-generated videos of celebrities, CEOs, and even financial influencers to push fake crypto and trading platforms. The FTC has pursued fake “AI investment tools” that took consumers for over $25 million. Anything promising guaranteed or “AI-powered” returns is a red flag. 5. **AI-polished phishing.** The misspelled scam email is history. AI now writes flawless, personalized messages impersonating your bank, the IRS, or your employer. Judge messages by what they ask for (urgency + money/credentials), never by how professional they look. Remember the IRS never initiates contact by email, text, or social media. 6. **Data privacy in the chatbots themselves.** Never share your Social Security number, full account numbers, passwords, or card details with any AI tool. For the budgeting uses above, amounts and category names are all the AI needs. Use consumer AI tools’ settings to disable training on your conversations where offered. 7. **Fake AI finance apps.** Stick to the major providers (ChatGPT, Claude, Gemini) or apps from your actual bank. Lookalike “AI budgeting” apps in app stores have been caught harvesting bank credentials. ## Final Thoughts on AI and Your Money AI is a tool, not a replacement for your own good judgment. Always double-check the math and never share sensitive data like your Social Security number or full bank account digits. When used correctly, these tools give you the “CFO mindset” without the expensive degree. The next wave isn’t hypothetical anymore. Agentic AI — assistants that don’t just advise but actually execute tasks — is already rolling out at major banks: Lloyds is bringing agentic AI to UK retail customers, DBS’s Joy assistant is handling authenticated banking tasks in Singapore, and Santander, BBVA, and Visa have all piloted live agent-initiated payments. For more on where this is headed, see [how AI is reshaping your financial life](https://savingtoinvest.com/how-ai-is-reshaping-your-financial-life-a-look-at-ai-powered-personal-finance/). That convenience raises the security stakes too — the same features that let an assistant pay a bill for you are exactly what a scammer wants to trick you into authorizing. I’ll keep updating this page as those tools, and their risks, mature. Start small by using one of the prompts above to organize your next month of spending. Feel free to leave your other AI prompt ideas in the comments below. Frequently Asked Questions QWhat is the best free AI tool for personal finances? AThe free tiers of ChatGPT, Claude, and Gemini all handle budgeting, calculators, and spending analysis well. The best one is largely personal preference - the prompts in this article work across all three. QIs it safe to share my bank transactions with an AI chatbot? AShare amounts and category descriptions only. Strip out your Social Security number, account numbers, passwords, and card details before pasting anything. Also check the tool's settings to opt out of your conversations being used for training. QCan AI do my taxes for me? AAI is excellent for organizing tax documents, explaining rules, and flagging deductions to track, but it shouldn't replace tax software or a CPA for actually filing. Use it as a pre-tax organizer and explainer, then file through proper channels. QHow do AI voice cloning scams work? AScammers capture a few seconds of someone's voice from social media or voicemail, clone it with AI, and call relatives with an urgent request for money. Defend yourself by hanging up and calling the person back on their known number, and by setting a family safe word. QCan scammers use AI to fake the photos of someone contacting me online? AYes. AI-generated profile photos are increasingly used in romance and 'new friend' scams to create a convincing but nonexistent person. Reverse-image-search any photo that seems too polished, and be wary of anyone who avoids video calls or always has a reason they can't meet in person. QHow much money is lost to AI-powered scams? AThe FBI's latest Internet Crime Complaint Center report attributed $893 million in losses to 22,364 AI-related complaints, and Deloitte projects generative-AI-enabled fraud could reach $40 billion by 2027. QWhat financial information should I never give an AI tool? AYour Social Security number, full bank or card account numbers, passwords, PINs, and answers to security questions. No legitimate use of AI for budgeting requires any of these. **Categories:** Personal Finance and Money --- ### [Quarterly Estimated Taxes This Year: What Freelancers Actually Need to Know](https://savingtoinvest.com/quarterly-estimated-taxes-this-year-what-freelancers-actually-need-to-know/) **Published:** March 3, 2026 **Author:** Andy **Content:** ### Key Takeaways - Quarterly payments kick in once you expect to owe $1,000 or more for the year. - Safe harbor: pay 100% of last year's tax (110% if AGI topped $150,000) to avoid penalties. - The IRS underpayment rate holds at 7% through Q4 2026, compounding daily on unpaid balances. - Payments don't have to be equal, but must hit 25%, 50%, 75%, then 100% cumulatively by each deadline. Last year, a friend of mine who’d been freelancing for three years got hit with a $1,400 penalty from the IRS — not because she didn’t pay her taxes, but because she paid them all at once in April. She’d been doing this since she started. Nobody told her it was a problem until she got the bill. This is incredibly common. The **quarterly estimated tax** system trips up hundreds of thousands of independent workers every single year, and the current tax code brings enough changes that even seasoned freelancers should take a second look at their approach. Here’s everything you need to know. Covered in this Article: [Toggle](#) - [The “Pay as You Go” Problem — and Why the IRS Doesn’t Care About April](#The_%E2%80%9CPay_as_You_Go%E2%80%9D_Problem_%E2%80%94_and_Why_the_IRS_Doesnt_Care_About_April) - [2026 Tax Brackets and Standard Deductions](#2026_Tax_Brackets_and_Standard_Deductions) - [Safe Harbor: The Simplest Way to Avoid Penalties](#Safe_Harbor_The_Simplest_Way_to_Avoid_Penalties) - [Quarterly Deadlines](#Quarterly_Deadlines) - [What the “One Big Beautiful Bill” Changed for Freelancers](#What_the_%E2%80%9COne_Big_Beautiful_Bill%E2%80%9D_Changed_for_Freelancers) - [Self-Employment Tax: The Number People Forget](#Self-Employment_Tax_The_Number_People_Forget) - [How to Actually Pay (Skip the Check)](#How_to_Actually_Pay_Skip_the_Check) - [A Simple Cash Flow System That Works](#A_Simple_Cash_Flow_System_That_Works) - [If You’ve Already Fallen Behind](#If_Youve_Already_Fallen_Behind) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [2026 Estimated Tax Checklist](#2026_Estimated_Tax_Checklist) - [Looking Ahead: 2027](#Looking_Ahead_2027) ## The “Pay as You Go” Problem — and Why the IRS Doesn’t Care About April The U.S. tax system isn’t designed for people who get paid in lump sums. It’s built around W-2 employees, where taxes get withheld automatically every paycheck. When you work for yourself, that mechanism doesn’t exist — the IRS expects you to replicate it on your own, four times a year. Miss that schedule and you’re not just late. You’re charged interest on the unpaid amount for every day it sits. That rate has held steady at 7% all year and is confirmed unchanged through the fourth quarter of 2026 — still high enough to sting on a meaningful tax bill. The trigger threshold hasn’t changed: if you expect to owe $1,000 or more when you file, quarterly payments are required. That catches a lot of people who treat their side income as informal or “not real business money.” The IRS doesn’t make that distinction. ## 2026 Tax Brackets and Standard Deductions The inflation adjustments this year are worth paying attention to, especially if your income has been relatively flat. The standard deduction rose to **$16,100 for single filers**, **$32,200 for married couples filing jointly**, and **$24,150 for heads of household** — a meaningful jump that could reduce how much taxable income you’re actually working with. The bracket thresholds shifted too: the 10% bracket now covers the first $12,400 of taxable income for individuals, and the 22% bracket kicks in at $50,400 for single filers. For the full table across every bracket and filing status, see my [2026-2027 federal tax brackets breakdown](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/). For most freelancers and consultants landing somewhere in the middle, knowing exactly where your income falls in these brackets is the difference between overpaying all year and keeping that cash working for you until it’s actually due. ## Safe Harbor: The Simplest Way to Avoid Penalties If you want to stop worrying about whether your quarterly estimates are accurate, the Safe Harbor rule is your best friend. You won’t face underpayment penalties if you do one of the following: 1. **Pay 90% of your current year’s actual tax liability**, or 2. **Pay 100% of what you owed last year** (based on your prior year return) Most self-employed people go with option two — it’s concrete, it requires no guessing, and it gives you a fixed target to hit across four payments. One important exception: if your adjusted gross income exceeded $150,000 last year ($75,000 if married filing separately), your safe harbor threshold is **110% of last year’s tax**, not 100%. Unlike the bracket and deduction numbers above, this $150,000 threshold is fixed by statute — it doesn’t get an inflation adjustment year to year, so high earners can’t assume it moves with the rest of the tax code. **Example:** Jamie is a freelance graphic designer who owed $9,000 in federal tax last year on an AGI of $95,000. Since her AGI is under $150,000, her safe harbor target is 100% of that — $9,000 total, or $2,250 per quarter — regardless of how much she actually owes this year. Even if a big client project pushes her real 2026 liability to $11,000, paying the $9,000 safe harbor amount on schedule means zero penalty; she’ll just owe the $2,000 difference when she files. ## Quarterly Deadlines The IRS schedule doesn’t line up with actual calendar quarters, which catches people off guard every year: PaymentDue DateIncome PeriodQ1April 15, 2026January 1 – March 31Q2June 15, 2026April 1 – May 31Q3September 15, 2026June 1 – August 31Q4January 15, 2027September 1 – December 31 Two things worth noting: the second “quarter” is only two months long. And missing a deadline by a single day still triggers interest charges that compound daily. Build a 10-day buffer into your calendar for each deadline — give yourself time to calculate and transfer funds without scrambling. ## What the “One Big Beautiful Bill” Changed for Freelancers The current tax code includes several provisions from the [One Big Beautiful Bill Act (OBBBA)](https://savingtoinvest.com/reconciling-trumps-big-beautiful-bill-bbb/) that directly affect self-employed workers: **Qualified Business Income (QBI) deduction:** The 20% QBI deduction is now permanent — no more expiration date to plan around. New for 2026: if you have at least $1,000 in aggregate qualified business income, you’re guaranteed a minimum deduction of $400, even if 20% of your actual QBI would work out to less. **Tips and overtime:** New deductions exist for qualified overtime and certain tip income. Whether these apply to your situation depends on your specific work structure, so it’s worth checking with a tax professional if either is relevant to you. **1099-K reporting threshold:** Restored to $20,000 and 200 transactions. If you’re under that threshold, you probably won’t receive a form — but you still owe taxes on every dollar earned. Tracking your own gross receipts is more important than relying on third-party platforms to send you paperwork. See my full breakdown of [what the 1099-K threshold change actually means for you](https://savingtoinvest.com/1099-k-explained-everything-you-need-to-know-about-this-tax-form/). ## Self-Employment Tax: The Number People Forget Income tax is only part of the bill. Self-employed workers also pay both sides of FICA — what an employer would normally split with you. In 2026, the **Social Security wage base increased to $184,500**, meaning you pay the 12.4% Social Security portion on earnings up to that amount. Medicare’s 2.9% applies to everything with no cap. Combined, that’s **15.3% in self-employment tax** before you even touch income tax rates. This is the number that surprises people most when they get their first big year. A solid rule of thumb: set aside **30% of gross income** in a dedicated account and you’ll almost always have enough to cover both self-employment tax and federal income tax, with a small buffer left over. One way to lower next year’s number: contributing to a [SEP IRA](https://savingtoinvest.com/sep-ira-rules-and-contribution-limits/) reduces your taxable business income dollar-for-dollar, which lowers your income tax bill (though not your self-employment tax — that’s calculated on net earnings before the SEP deduction). ## How to Actually Pay (Skip the Check) The IRS is actively phasing out paper check processing. For individuals, **IRS Direct Pay** is the cleanest option — it pulls directly from a checking or savings account, charges no fees, and generates a confirmation you can save as a PDF record. For business owners making regular payments, **EFTPS (Electronic Federal Tax Payment System)** lets you schedule all four quarterly payments at the start of the year and essentially forget about it. It takes about 15 minutes to set up the first time. Don’t mail checks. Postal delays don’t excuse late payments, and the IRS credits the payment based on when it arrives — not when you sent it. ## A Simple Cash Flow System That Works The hardest part of quarterly taxes isn’t calculating them. It’s having the money available when the deadline hits. The simplest approach: open a [separate high-yield savings account](https://savingtoinvest.com/high-yield-savings/) and label it for taxes. Every time you get paid, immediately transfer 30% of that payment into the account. Don’t touch it. With current savings rates, that reserve will actually earn interest while it sits there — which partially offsets the cost of being self-employed relative to W-2 work. Automate the transfer if your bank allows it. The goal is to make it feel like that money was never available to spend in the first place. **Example:** Marcus, a marketing consultant, lands a $40,000 project in Q1. He immediately transfers $12,000 (30%) into a labeled high-yield savings account and pays his Q1 estimate from what’s already set aside. By the time his Q2 payment is due, the reserve has grown slightly from interest — a small silver lining on top of never having to scramble for the payment. ## If You’ve Already Fallen Behind Missing a deadline doesn’t mean waiting for the next one to catch up. The IRS calculates penalties based on the exact number of days a payment is late — which means paying today is always cheaper than paying in three months. Even a partial payment stops the clock on that portion: if you owe $3,000 and can only pay $1,500 now, that’s worth doing immediately. One correction worth being precise about: the IRS’s automatic **first-time penalty abatement doesn’t cover the estimated tax underpayment penalty** (the one calculated on Form 2210), even if you have a clean compliance history otherwise. That relief is real for late-filing and late-payment penalties, but Form 2210 penalties are excluded from it. What actually helps instead: if your income arrived unevenly during the year — a big Q1 payout followed by a slow rest of the year, for example — the **annualized income installment method** (Form 2210, Schedule AI) lets you show the IRS when the money actually came in. That’s better than being penalized as if you’d earned it evenly across all four quarters. Reasonable-cause relief is also worth requesting directly if a genuine hardship was involved — a disaster, serious illness, or a death in the family. It isn’t automatic here, but the IRS is generally willing to work with documented one-off circumstances. ## Common Issues to Watch Out For I get questions about this a lot, so here are the mistakes and points of confusion I see most: **1. Assuming you can just stop paying once your self-employment income stops.** If your freelance work dries up mid-year — a contract ends, you take a full-time job — you generally don’t need to keep sending in Q3/Q4 payments as long as what you’ve already paid (plus any withholding from a new job) covers the safe harbor amount for the whole year. The catch: check your *cumulative* total against what’s required to date, not just whether you “feel caught up.” **2. Not realizing quarterly payments don’t have to be equal — but do have to hit cumulative targets.** You can pay unevenly (35% in Q1, 30% in Q2, and so on) and still be fine, as long as your running total meets 25% by Q1, 50% by Q2, 75% by Q3, and 100% by Q4. Front-loading is always safe. Back-loading isn’t: paying 10% in Q1 and catching up later still triggers a penalty for the quarters where you were behind, even if your annual total ends up correct. **3. Treating side income as “not real” business income.** The $1,000 threshold applies the moment you expect to owe that much — it doesn’t matter if the work is a side gig, a single big contract, or your full-time living. **4. Assuming a missed first-time penalty gets automatically forgiven.** As covered above, the estimated tax penalty specifically isn’t eligible for the IRS’s automatic first-time abatement — plan around avoiding it rather than counting on relief after the fact. **5. Ignoring the 1099-K threshold’s real meaning.** Not receiving a 1099-K (because you’re under $20,000 or 200 transactions) doesn’t mean the income is invisible or untaxed — you’re still required to report every dollar you actually earned. ## 2026 Estimated Tax Checklist - \[ \] Pull your 2025 tax return and calculate 100% (or 110% if AGI > $150K) as your Safe Harbor target - \[ \] Identify which 2026 bracket your income falls into after the new standard deduction - \[ \] Open a dedicated savings account for tax reserves and automate 30% transfers - \[ \] Add all four deadlines to your calendar with 10-day lead reminders - \[ \] Register for IRS Direct Pay or EFTPS and make your first payment before April 15 - \[ \] Review QBI, overtime, and tips deductions for any that apply to your situation ## Looking Ahead: 2027 The next round of quarterly deadlines follows the same mid-month pattern: April, June, and September 2027, then January 2028 for the final installment on 2027 income. Two things are still projections rather than confirmed numbers as I write this. The standard deduction and bracket thresholds typically get a modest inflation bump — likely in the 2-3% range based on recent COLA trends. The IRS’s official 2027 figures usually land in October or November 2026. The $150,000 safe harbor AGI threshold, on the other hand, won’t move. It’s fixed by statute, not indexed for inflation, so don’t expect it to creep up the way the brackets do. The underpayment interest rate is tied to the federal short-term rate and resets every quarter. It’s held at 7% all through 2026, but that’s not guaranteed to continue into 2027 — I’ll update this page with confirmed figures as soon as the IRS releases them. Quarterly taxes are one of those things that feel complicated until you’ve done them twice. The system isn’t designed to be intuitive for independent workers — but once you have a consistent process, it becomes genuinely routine. Frequently Asked Questions QHow much do I need to pay in quarterly estimated taxes to avoid a penalty? APay the smaller of 90% of this year's actual tax liability or 100% of what you owed last year (110% if your prior-year AGI exceeded $150,000, or $75,000 if married filing separately). Most freelancers use the 100%/110% option since it's a fixed, knowable target. QWhat happens if I miss a quarterly estimated tax deadline? AThe IRS charges interest on the unpaid amount for every day it's late, currently at 7% annually, compounded daily. Paying as soon as possible always costs less than waiting, since the penalty is calculated on the exact number of days the payment sits unpaid. QCan I stop making estimated payments if my self-employment income stops mid-year? AGenerally yes, as long as your payments so far (plus any new withholding) already meet the cumulative safe harbor percentage required to that point in the year. If your income was heavily front-loaded, you may not owe anything more for the rest of the year. QDo my quarterly payments have to be equal amounts? ANo. What matters is hitting cumulative thresholds of 25%, 50%, 75%, and 100% of your required annual payment by each due date. Paying more early is always safe; paying less early and catching up later can still trigger a penalty for the underpaid quarters. QWhat's the current IRS interest rate on underpaid estimated taxes? A7% annually, compounded daily, for individuals. That rate has held steady through every quarter of 2026, including the fourth quarter. QDoes the IRS forgive first-time estimated tax penalties? ANo. The IRS's automatic first-time penalty abatement program does not cover the estimated tax underpayment penalty on Form 2210, even with a clean compliance history. Reasonable-cause relief for genuine hardships and the annualized income method for uneven earnings are the real options if you fall short. QHow much should I set aside from each freelance payment for taxes? AA common rule of thumb is 30% of gross income, covering the 15.3% self-employment tax plus federal income tax at typical freelancer income levels. Adjust up if you're in a higher tax bracket or live in a state with its own income tax. **Categories:** Taxes and Retirement --- ### [2027 401(k), IRA & Roth IRA Limits: What’s Projected After 2026’s Increases](https://savingtoinvest.com/401k-ira-and-roth-ira-contribution-and-income-limits/) **Published:** June 18, 2012 **Author:** Andy **Content:** ### Key Takeaways - The 2026 401(k) employee contribution limit is $24,500, up $1,000 from 2025. - IRA and Roth IRA limits rose to $7,500 in 2026, up from $7,000. - Workers ages 60-63 get an $11,250 401(k) super catch-up instead of the standard $8,000. - Milliman projects the 2027 401(k) limit rising to $25,000, confirmed by the IRS around November 2026. The IRS officially raised retirement plan contribution limits for 2026 in [IRS Notice IR-2025-111](https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500), announced in November 2025. Most of the increases are driven by COLA adjustments under SECURE 2.0. Here’s the full rundown of what changed and what it means for your retirement savings this year. Covered in this Article: [Toggle](#) - [2026 401(k), 403(b), and TSP Contribution Limits](#2026_401k_403b_and_TSP_Contribution_Limits) - [Example: How Catch-Up Contributions Work](#Example_How_Catch-Up_Contributions_Work) - [2026 IRA and Roth IRA Contribution Limits](#2026_IRA_and_Roth_IRA_Contribution_Limits) - [Traditional IRA Deductibility Phase-Out Ranges (2026)](#Traditional_IRA_Deductibility_Phase-Out_Ranges_2026) - [Roth IRA Income Phase-Out Ranges (2026)](#Roth_IRA_Income_Phase-Out_Ranges_2026) - [SEP IRA Limits (2026)](#SEP_IRA_Limits_2026) - [SIMPLE IRA Limits (2026)](#SIMPLE_IRA_Limits_2026) - [Saver’s Credit (Retirement Savings Contributions Credit)](#Savers_Credit_Retirement_Savings_Contributions_Credit) - [Other Key Retirement Plan Thresholds (2026)](#Other_Key_Retirement_Plan_Thresholds_2026) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027](#Looking_Ahead_2027) ## 2026 401(k), 403(b), and TSP Contribution Limits The employee deferral limit for 401(k), 403(b), and most 457 plans — including the federal Thrift Savings Plan (TSP) — is **$24,500** for 2026, up $1,000 from 2025. The total contribution cap (employee + employer combined) is **$72,000**, up from $70,000. Contribution Type2024202520262027 (est.)Employee deferral (401k/403b/TSP)$23,000$23,500$24,500$25,000Catch-up (age 50–59, 64+)$7,500$7,500$8,000$8,000Super catch-up (age 60–63)$11,500$11,250$11,250$11,750Total employee + employer (excl. catch-up)$69,000$70,000$72,000$75,000Annual compensation limit$345,000$350,000$360,000$370,000Highly compensated employee (HCE) threshold$155,000$160,000$165,000$170,000 *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get the latest money, tax and stimulus news directly in your inbox.* **Looking ahead to 2027:** Actuarial firm Milliman’s latest forecast — based on current COLA and inflation trends — projects the employee deferral limit rising **$500 to $25,000** and the age 60–63 super catch-up rising **$500 to $11,750**. The regular catch-up for ages 50–59 and 64+ is projected to hold at $8,000. The combined employee-plus-employer cap is projected to rise **$3,000 to $75,000**, and the annual comp limit to roughly $370,000. Official 2027 figures typically drop in October or November 2026 — I’ll update this table as soon as they’re confirmed. **On the super catch-up:** Workers ages 60–63 can contribute $11,250 total to their 401(k) catch-up in 2026 (unchanged from 2025). That’s $3,250 above the standard $8,000 catch-up, not $4,000 as some sources have incorrectly reported. The total 401(k) for a 60–63-year-old is $24,500 + $11,250 = **$35,750**. *See more details in our in-depth article covering [401(k), 403(b), and TSP Contribution Limits — Employee, Employer, and Catch-Up Amounts](https://savingtoinvest.com/taking-advantage-of-new-401k/).* For the employer match, vesting, and catch-up mechanics specific to a standard 401(k), see my [401(k) contribution limits, match, and catch-up guide ↗](https://savingtoinvest.com/maximum-employee-and-employer-401k-contribution-limits-and-catch-up-amounts/). And for the full rules on catch-up contributions across every plan type — including the Roth catch-up mandate for high earners — see my [dedicated catch-up contribution guide ↗](https://savingtoinvest.com/when-can-i-make-catch-up-contributions-to-401k-ira-403b-and-simple-ira-retirement-plans/). ### Example: How Catch-Up Contributions Work **Mark**, 62, earns $180,000 and maximizes his 401(k). He can contribute $24,500 (standard limit) plus $11,250 (super catch-up) = $35,750 in 2026. His employer adds a 4% match on $180,000 = $7,200. Total in his plan: $42,950 — well under the $72,000 combined cap. **Sarah**, 51, earns $95,000. She contributes $24,500 + $8,000 catch-up = $32,500. Her employer matches 3% ($2,850). Total: $35,350. ## 2026 IRA and Roth IRA Contribution Limits The IRA contribution limit for 2026 is **$7,500**, up from $7,000 in 2024–2025. This is the combined cap across all traditional and Roth IRAs you hold. The catch-up contribution for those 50 and older is **$1,100** (newly indexed for inflation under SECURE 2.0), bringing the 50+ total to **$8,600**. Contribution Type2024202520262027 (est.)IRA / Roth IRA (under 50)$7,000$7,000$7,500$7,500Catch-up (age 50+)$1,000$1,000$1,100$1,100Total (age 50+)$8,000$8,000$8,600$8,600 **Looking ahead to 2027:** The IRA base limit is expected to hold at **$7,500** — it would need to reach $7,750 to trigger the next $500 rounding step to $8,000, which likely requires another year of inflation at that level. The catch-up is indexed to the nearest $100; at current COLA trends it stays at **$1,100**. Watch for the official IRS announcement in October or November 2026. The IRA catch-up was flat at $1,000 for years, but SECURE 2.0 started indexing it to inflation beginning in 2024. The 2026 figure of $1,100 is the first time it’s moved. *See more details in our in-depth article covering [Traditional IRA vs. Roth IRA — Contribution Limits and Phase-Out Income Ranges](https://savingtoinvest.com/traditional-ira-versus-roth-ira-contribution-and-phase-out-income-limits/).* ## Traditional IRA Deductibility Phase-Out Ranges (2026) If you (or your spouse) have a workplace retirement plan, your traditional IRA deduction phases out at higher incomes. You can still contribute — you just don’t get the deduction above these ranges (a non-deductible IRA contribution). Filing Status2025 Phase-Out2026 Phase-Out2027 (est.)Single / Head of Household (with workplace plan)$79,000–$89,000$81,000–$91,000$83,000–$93,000Married Filing Jointly (contributor has plan)$126,000–$146,000$129,000–$149,000$132,000–$152,000MFJ (spouse has plan, you don’t)$236,000–$246,000$242,000–$252,000$248,000–$258,000Married Filing Separately (with plan)$0–$10,000$0–$10,000$0–$10,000 **Looking ahead to 2027:** Deductibility phase-out ranges typically shift by $2,000–$3,000 per year. Expect the single filer range to move to approximately **$83,000–$93,000** and the MFJ contributor range to **$132,000–$152,000**. Confirmed figures arrive with the October/November IRS announcement. *See more details in our in-depth article covering [Traditional IRA vs. Roth IRA — Contribution Limits and Phase-Out Income Ranges](https://savingtoinvest.com/traditional-ira-versus-roth-ira-contribution-and-phase-out-income-limits/).* ## Roth IRA Income Phase-Out Ranges (2026) Roth IRA eligibility phases out — and eventually eliminates — at higher incomes. These limits changed more significantly for 2026 than many sites currently show, so double-check your sources. Filing Status2025 Phase-Out2026 Phase-Out2027 (est.)Single / Head of Household$150,000–$165,000$153,000–$168,000$157,000–$172,000Married Filing Jointly$236,000–$246,000$242,000–$252,000$248,000–$258,000Married Filing Separately$0–$10,000$0–$10,000$0–$10,000 **Looking ahead to 2027:** Roth IRA phase-out ranges have been shifting by $3,000–$6,000 per year recently. For 2027, I’d estimate the single range landing around **$157,000–$172,000** and MFJ around **$248,000–$258,000**. These are projections — official figures come in October or November 2026. Above the top of the range, you can’t contribute directly to a Roth IRA. The workaround is the backdoor Roth — contribute to a traditional IRA (non-deductible), then convert. That strategy remains intact in 2026; neither SECURE 2.0 nor the One Big Beautiful Bill (OBBB) changed it. **On Roth timing:** The OBBB extended the pre-2017 TCJA tax rates through 2033, meaning current tax brackets are locked in for several more years. For anyone on the fence about a Roth conversion, the rate certainty is a meaningful argument for converting sooner rather than waiting. *See more details in our in-depth article covering [Traditional IRA vs. Roth IRA — Contribution Limits and Phase-Out Income Ranges](https://savingtoinvest.com/traditional-ira-versus-roth-ira-contribution-and-phase-out-income-limits/).* *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get notified when 2027 figures are released (typically October/November).* ## SEP IRA Limits (2026) The SEP IRA contribution limit for 2026 is **$72,000**, or 25% of compensation, whichever is lower. That’s up from $70,000 in 2025. The $360,000 annual compensation cap applies when calculating the 25% figure. YearSEP IRA LimitCompensation Cap2024$69,000$345,0002025$70,000$350,0002026$72,000$360,0002027 (est.)$74,000$370,000 **Looking ahead to 2027:** The SEP IRA limit tracks the Section 415(c) defined contribution cap. At current COLA trends, it should move to approximately **$74,000** with a compensation cap of **$370,000**. *See more details in our in-depth article covering [SEP IRA Contribution Limits, Rules, and Eligibility](https://savingtoinvest.com/sep-ira-rules-and-contribution-limits/) — including eligibility rules and same-year 401(k) interactions.* ## SIMPLE IRA Limits (2026) The SIMPLE IRA employee deferral limit is **$17,000** in 2026, up from $16,500 in 2025. Employers with 25 or fewer employees may allow a higher limit of **$18,100** under SECURE 2.0’s applicable employer plan rules. Contribution Type202520262027 (est.)Standard employee deferral$16,500$17,000$17,500Applicable employer (≤25 employees)$17,600$18,100$18,600Catch-up (age 50–59, 64+)$3,500$4,000$4,000Catch-up — applicable employer plan$3,850$3,850$3,850Super catch-up (age 60–63)$5,250$5,250$5,250 **Looking ahead to 2027:** The standard SIMPLE IRA deferral should reach approximately **$17,500**, with the small-employer limit at **$18,600**. Catch-up and super catch-up limits are likely unchanged pending a larger COLA adjustment. *See more details in our in-depth article covering [SIMPLE IRA Contribution Limits and Rules for Small Business Retirement Plans](https://savingtoinvest.com/simple-ira-contribution-and-income-limits-small-business-retirement-plans/).* ## Saver’s Credit (Retirement Savings Contributions Credit) The Saver’s Credit income limits also increased for 2026. This credit is available to lower- and moderate-income workers who contribute to an IRA or workplace plan — up to 50% of the first $2,000 in contributions. Filing Status2025 AGI Limit2026 AGI Limit2027 (est.)Married Filing Jointly$79,000$80,500$82,500Head of Household$59,250$60,375$61,750Single / MFS$39,500$40,250$41,250 **Looking ahead to 2027:** Saver’s Credit income limits adjust annually with inflation. At current COLA trends, expect the MFJ ceiling to move to approximately **$82,500**, HoH to **$61,750**, and single to **$41,250**. Confirmed 2027 figures typically arrive in October/November 2026. *See more details in our in-depth article covering [Saver’s Tax Credit Income Limits and How to Claim It](https://savingtoinvest.com/savers-tax-credit-and-income-limits-to-help-workers-save-for-retirement/) — including full credit rate tiers and Form 8880 guidance.* ## Other Key Retirement Plan Thresholds (2026) Threshold202520262027 (est.)Annual compensation limit (415)$350,000$360,000$370,000Highly compensated employee (HCE)$160,000$165,000$170,000Defined benefit plan limit$280,000$285,000$290,000 **Looking ahead to 2027:** The annual comp cap should move to approximately **$370,000** and the HCE threshold to **$170,000**, both rounding to the nearest $5,000. The defined benefit limit is projected at **$290,000**. ## Common Issues to Watch Out For I get a lot of questions about this stuff, so here are the five mistakes I see come up most: **1. Confusing the 50+ catch-up with the super catch-up.** If you’re 60–63, your 401(k) catch-up is $11,250 total — not $8,000 plus something extra on top. The super catch-up replaces the standard catch-up for those ages, not stacks on it. Once you turn 64, you drop back to the regular $8,000 catch-up. **2. Thinking the IRA limit is per account.** The $7,500 (or $8,600 for 50+) is the combined limit across all your IRAs — traditional and Roth combined. You can split contributions between them, but the total can’t exceed the cap. **3. Contributing to a Roth IRA over the income limit.** If your MAGI exceeds $168,000 (single) or $252,000 (MFJ), you can’t contribute directly. The fix is the backdoor Roth, but you need to handle the “pro-rata rule” if you have pre-tax IRA money elsewhere. **4. Missing the IRA deadline.** The IRA contribution deadline is the tax filing deadline — typically April 15 — for the prior tax year. You can contribute to your 2026 IRA as late as April 15, 2027. But don’t wait until then to actually invest it; cash sitting in an IRA money market earns very little. **5. Forgetting the non-working spouse IRA.** A married couple where one partner doesn’t work can still contribute to a spousal IRA — up to $7,500 per person (or $8,600 for 50+), as long as the working spouse has enough earned income to cover both contributions. The phase-out for the non-working spouse’s traditional IRA deduction kicks in at $242,000–$252,000 of MAGI in 2026. ## Looking Ahead: 2027 Each table above includes 2027 estimates based on current COLA trends. Milliman’s latest actuarial forecast puts the 401(k) employee deferral at $25,000 and the age 60–63 super catch-up at $11,750. It also keeps the IRA limit at $7,500 and pushes the combined 401(k) cap to $75,000 — but nothing is official until the IRS announcement in October or November 2026. The Social Security COLA, which often tracks similar inflation data, is a useful leading indicator of where retirement plan limits are heading — see our [2027 Social Security COLA forecast](https://savingtoinvest.com/social-security-tax-and-cost-of-living-adjustment-cola/) for the latest projections. I’ll update this page as soon as the IRS confirms 2027 figures. Frequently Asked Questions QWhat is the 401(k) contribution limit for 2026? AThe 401(k) employee contribution limit for 2026 is $24,500, up from $23,500 in 2025. Workers aged 50-59 or 64+ can add an $8,000 catch-up contribution for a total of $32,500. Workers aged 60-63 can contribute up to $35,750 total using the $11,250 super catch-up under SECURE 2.0. QWhat is the IRA contribution limit for 2026? AThe IRA contribution limit for 2026 is $7,500, up from $7,000 in 2024-2025. This is the combined limit across all traditional and Roth IRAs. Those 50 and older can add a $1,100 catch-up (newly indexed for inflation under SECURE 2.0), bringing the 50+ total to $8,600. QWhat are the Roth IRA income limits for 2026? ASingle filers' Roth IRA eligibility phases out between $153,000 and $168,000 MAGI in 2026. Married filing jointly phases out between $242,000 and $252,000. Above those ranges, you cannot contribute directly but can use the backdoor Roth strategy. QCan I contribute to both a 401(k) and an IRA in 2026? AYes. The 401(k) limit and IRA limit are separate. You can max out both - $24,500 in your 401(k) and $7,500 in an IRA - in the same year. However, your traditional IRA contribution may not be deductible if your income exceeds the phase-out range and you have a workplace plan. QWhat is the 2026 SEP IRA limit? AThe 2026 SEP IRA contribution limit is $72,000 or 25% of compensation, whichever is lower. The annual compensation cap used in the 25% calculation is $360,000. QWhat is the super catch-up contribution for ages 60-63? AUnder SECURE 2.0, workers aged 60, 61, 62, or 63 can make a super catch-up contribution to their 401(k). The total super catch-up is $11,250 in 2026 (unchanged from 2025). This replaces - not adds to - the standard $8,000 catch-up for those ages. Total 401(k) for ages 60-63: $35,750. QWhat are the 2026 traditional IRA deduction phase-out limits? ASingle filers covered by a workplace plan see their deduction phase out between $81,000 and $91,000 MAGI. Married filing jointly where the contributor has a workplace plan: $129,000-$149,000. A non-working spouse's deduction phases out between $242,000 and $252,000 if the other spouse has a workplace plan. **Categories:** Taxes and Retirement **Tags:** 401K, IRA, IRS, retirement, Roth IRA, taxes --- ### [Parent PLUS Loans Got Capped at $20,000 a Year — Here's What Changed and What to Do Instead](https://savingtoinvest.com/parent-plus-and-grad-plus-loan-changes/) **Published:** September 10, 2026 **Author:** Andy **Content:** ### Key Takeaways - Parent PLUS loans are now capped at $20,000 a year, $65,000 total per student. - Grad PLUS is eliminated for anyone starting a new graduate program on or after July 1, 2026. - A grandfather clause lets existing Parent PLUS borrowers keep the old uncapped rules for 3 more years. - Grad students get standard Direct Loan limits instead: $20,500-$100,000, or $50,000-$200,000 for professional programs like medicine and law. Parent PLUS loans changed in a big way on July 1, 2026: parents can now borrow only **$20,000 a year and $65,000 total per student**, down from an effectively uncapped amount tied to the school’s full cost of attendance. Grad PLUS loans disappeared entirely for anyone starting a new graduate program. These changes come from the One Big Beautiful Bill (OBBB) and apply to the 2026-27 school year. If you’re financing a kid’s freshman year this fall, or you’re a grad student counting on Grad PLUS, this is worth understanding before you assume last year’s playbook still applies. Here’s what actually changed, who’s grandfathered in under the old rules, and what to do if the new caps leave you short. Covered in this Article: [Toggle](#) - [What Changed for Parent PLUS Loans](#What_Changed_for_Parent_PLUS_Loans) - [What Changed for Grad PLUS Loans](#What_Changed_for_Grad_PLUS_Loans) - [The Grandfather Clause: Who Still Gets the Old Rules](#The_Grandfather_Clause_Who_Still_Gets_the_Old_Rules) - [What to Do If the New Caps Leave You Short](#What_to_Do_If_the_New_Caps_Leave_You_Short) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: What I’m Watching For](#Looking_Ahead_What_Im_Watching_For) ## What Changed for Parent PLUS Loans Before this year, a Parent PLUS loan could cover the full cost of attendance at any school, minus whatever other financial aid the student already had. There was no dollar ceiling — a $70,000-a-year private university and a $20,000-a-year state school worked the same way, just with different amounts borrowed. Starting with loans first disbursed for the 2026-27 academic year, that changes to a hard cap: **$20,000 per year, and $65,000 total across a student’s undergraduate education.** If your school’s cost of attendance minus other aid exceeds $20,000 in a given year, Parent PLUS simply won’t cover the rest anymore. The new interest rate for Direct PLUS Loans first disbursed between July 1, 2026 and June 30, 2027 is **9.07%**, up slightly from 8.94% the year before. ## What Changed for Grad PLUS Loans Grad PLUS loans — which let graduate and professional students borrow up to their full cost of attendance — are **eliminated entirely for students enrolling in a new program** on or after July 1, 2026. In place of Grad PLUS, graduate students now rely on standard Direct Unsubsidized Loan limits: **$20,500 per year and $100,000 lifetime** for most master’s and doctoral programs, or **$50,000 per year and $200,000 lifetime** for professional programs like medical, dental, and law school. Those numbers are meaningfully lower than what many programs actually cost, which is the real story here for anyone starting a new graduate program this fall. ## The Grandfather Clause: Who Still Gets the Old Rules Not everyone is affected right away. If a parent already had a Parent PLUS loan for a specific student **before July 1, 2026**, that parent can keep borrowing under the old, uncapped rules for up to **three more academic years** — as long as the student stays enrolled in the same program they were already in. The same logic applies to graduate students already using Grad PLUS: if you were enrolled and borrowing under Grad PLUS before July 1, 2026, you can generally continue under the old rules for that same program. **Example — Diane** took out a Parent PLUS loan for her son’s freshman year in fall 2025. Because that loan was disbursed before the July 1, 2026 cutoff, she can continue borrowing under the old, uncapped rules for his sophomore, junior, and senior years too — as long as he doesn’t change programs or schools in a way that resets his enrollment. **Example — Marcus** is starting a brand-new master’s program in fall 2026. He never used Grad PLUS before, so he’s subject to the new $20,500/year Direct Loan cap from day one, even though the program costs considerably more than that per year. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) if you want to stay current as more guidance comes out on how schools are applying these transition rules.* ## What to Do If the New Caps Leave You Short If your family’s funding gap is bigger than $20,000 a year (or your grad student’s is bigger than $20,500 or $50,000), you’ve got a few realistic paths, each with tradeoffs: **Private student loans.** These are credit-based, so approval and rate depend heavily on the borrower’s (or co-signer’s) credit profile — unlike PLUS loans, which historically required only a basic credit check. Private loans also don’t come with federal protections like income-driven repayment or the [RAP plan now available to federal borrowers](https://savingtoinvest.com/5-tips-for-paying-off-student-debt-faster/). **Tapping savings or reworking the budget.** If you have a 529 plan or other education savings, this is the year to use it fully before leaning on any loan. I’ve written before about [weighing college savings against retirement contributions](https://savingtoinvest.com/saving-for-the-future-college-tuition-vs-retirement/) — that tradeoff gets more relevant, not less, when the borrowing ceiling drops. **Having the student borrow more directly.** Undergraduate Direct Loan limits for students themselves didn’t change in this round of updates, so it’s worth checking whether the student has room left under their own borrowing limits before parents turn to private lenders. **Reconsidering school choice.** For families right at the edge of affordability, a lower-cost in-state or public option can close more of the gap than any loan product will. It’s not the answer anyone wants to hear mid-application-cycle, but it’s the most durable fix for a funding gap that recurs every year. For a broader look at financing options beyond loans entirely, see my rundown of [how to pay for college with financial aid, scholarships, and alternatives to a 529](https://savingtoinvest.com/how-to-pay-for-college-funds-savings-and-alternatives/). ## Common Issues to Watch Out For I’ve heard from a lot of confused parents on this one, and a few mix-ups keep coming up. **Assuming the cap applies retroactively to loans already taken out.** It doesn’t. Existing Parent PLUS balances aren’t affected — the new cap only applies to loans first disbursed for the 2026-27 school year and later, and even then the grandfather clause covers continuing students. **Not realizing the grandfather clause is tied to the student’s program, not just the parent.** If your child transfers schools or switches to a different program, you may lose the grandfathered status even if you’re the same parent who borrowed before July 1, 2026. Check with the financial aid office before assuming continuity. **Overlooking that Grad PLUS elimination only affects new enrollment.** If you were already in a graduate program and using Grad PLUS before the cutoff, you’re not suddenly cut off mid-program — this hits new students starting fresh, not people partway through. **Confusing the Parent PLUS cap with undergraduate student loan limits.** These are separate systems. A student’s own Direct Loan borrowing limits are a different (and in this round, unchanged) set of numbers from what a parent can borrow on their behalf. **Not shopping private loan rates before assuming they’re worse than PLUS.** Depending on a co-signer’s credit, some private loans can actually come in below the new 9.07% PLUS rate — it’s worth comparing rather than assuming PLUS is automatically the cheaper option now that it’s capped. ## Looking Ahead: What I’m Watching For The immediate open question is how individual schools handle the transition — some are already adjusting financial aid packages to shift more of the gap toward institutional aid or payment plans, while others are leaving it entirely on families to figure out. I’m also watching whether Congress revisits the $20,000/$65,000 figures at all in future legislation, since they’re not indexed to inflation or rising tuition costs the way some other federal aid figures are. For now, treat these caps as fixed dollar amounts that will represent a shrinking share of the total cost of attendance each year tuition rises. I’ll update this page as more schools publish their specific transition guidance. Frequently Asked Questions QHow much can parents borrow with a Parent PLUS loan now? AStarting with loans first disbursed for the 2026-27 school year, Parent PLUS loans are capped at $20,000 per year and $65,000 total per student. Previously there was no hard cap - parents could borrow up to the full cost of attendance minus other aid. QIs Grad PLUS completely gone? AFor students enrolling in a new graduate program on or after July 1, 2026, yes. Students already enrolled and borrowing under Grad PLUS before that date can generally continue under the old rules for that same program. QWhat can graduate students borrow instead of Grad PLUS? AStandard Direct Unsubsidized Loan limits apply: $20,500 per year and $100,000 lifetime for most graduate programs, or $50,000 per year and $200,000 lifetime for professional programs like medical and law school. QDo the new Parent PLUS caps apply to loans I already have? ANo. Existing Parent PLUS balances aren't affected by the new caps. If you already had a Parent PLUS loan for a specific student before July 1, 2026, you can continue borrowing under the old, uncapped rules for that same student for up to three more academic years, as long as they stay in the same program. QWhat is the Parent PLUS loan interest rate for 2026-27? A9.07%, up from 8.94% the prior year, for Direct PLUS Loans first disbursed between July 1, 2026 and June 30, 2027. QWhat should I do if the new caps don't cover my family's cost gap? AOptions include private student loans (credit-based, so rates depend on the borrower's or co-signer's credit), using 529 savings more aggressively, having the student borrow more under their own Direct Loan limits, or reconsidering school choice for a lower-cost option. Each comes with real tradeoffs, so it's worth comparing rather than defaulting to whichever option seems most familiar. QDoes this affect current college students or only new ones? AIt depends on when the parent's first Parent PLUS loan for that student was disbursed. If it was before July 1, 2026, the grandfather clause generally lets the parent keep borrowing under the old rules for that student's remaining years in the same program. **Categories:** Taxes and Retirement --- ### [Life Insurance Rates in 2026: What You'll Actually Pay by Age and Provider](https://savingtoinvest.com/life-insurance-rates-and-how-much-coverage-you-need/) **Published:** February 12, 2011 **Author:** Andy **Content:** ### Key Takeaways - A healthy 40-year-old buying a 20-year, $500,000 term policy pays $37-$59/month in 2026, depending on provider. - Shopping around matters: the cheapest-to-average price gap runs $120-$156/year, widening sharply at higher coverage. - Most guidance points to 10-15x your annual income as a starting coverage target, adjusted for your obligations. - Smoking more than triples your premium, while poor-but-insurable health adds only $5-$8/month on average. Most people know they should have life insurance and still don’t get around to buying it. Part of the reason is that nobody wants to think hard about their own death. The other part is more practical: it’s not obvious how much coverage is enough, or what it should actually cost. Both questions have real, current answers. Covered in this Article: [Toggle](#) - [How Much Does Life Insurance Actually Cost in 2026?](#How_Much_Does_Life_Insurance_Actually_Cost_in_2026) - [How Much Coverage Do You Actually Need?](#How_Much_Coverage_Do_You_Actually_Need) - [What a Death Benefit Actually Needs to Cover](#What_a_Death_Benefit_Actually_Needs_to_Cover) - [Term vs. Whole Life: Which One Do You Need?](#Term_vs_Whole_Life_Which_One_Do_You_Need) - [How to Shop for the Best Rate](#How_to_Shop_for_the_Best_Rate) - [Looking Ahead: 2027](#Looking_Ahead_2027) ## How Much Does Life Insurance Actually Cost in 2026? Term life insurance — the kind that pays a death benefit if you die during a fixed period, with no cash value or investment component — is far cheaper than most people assume. For a healthy 40-year-old buying a 20-year, $500,000 policy, the average premium runs $47 a month for women and $59 a month for men. But “average” hides a wide spread between providers, and shopping around is where the real savings are. ### Cheapest Term Life Insurance Providers (40-Year-Old, 20-Year, $500,000 Policy) ProviderMonthly Rate (Women)Monthly Rate (Men)Banner Life$37$46Transamerica$37$46Penn Mutual$38$47Pacific Life$38$54Cincinnati Life$40$49Protective$42$54Fidelity$44$58Columbus Life$44$53Nationwide$45$56Prudential$46— *Rates reflect nonsmoking 40-year-olds in average health, based on MoneyGeek’s 2026 analysis of 30 major term life insurers. Your actual quote depends on your specific age, health, state, and underwriting class — treat this as a starting benchmark, not a quote.* Banner Life and Transamerica come out cheapest most consistently, but the difference between the cheapest and the average-priced provider adds up: a woman paying the $47 average instead of Banner Life’s $37 spends an extra $120 a year for identical coverage. That gap widens considerably at higher coverage levels — at $2 million in coverage, the spread between the cheapest provider and the average quote exceeds $500 a year. ### Rates by Age Premiums rise gradually through your 30s and 40s, then accelerate sharply after 50. Locking in a policy while you’re young and healthy fixes your rate for the entire term, even if your health changes later. AgeApprox. Monthly Rate (20-yr, $500K term)20-25$29-$3530$30-$3835$25-$4040$37-$5945$50-$6950$70-$10265 (10-yr, $250K term)$72-$136 ### What Actually Moves Your Rate Two factors change your premium more than anything else: **Smoking status.** A 40-year-old smoker pays $121-$148 a month (women) or $163-$195 a month (men) for the same 20-year, $500,000 policy that costs a nonsmoker $37-$59 — more than triple. If you’ve quit, most insurers reclassify you as a nonsmoker after 12-24 months of verified tobacco-free status, which can cut your future premiums substantially (existing in-force policies don’t automatically reprice, but you can often requalify for a better rate class or a new policy). **Health status is less punishing than people expect.** Applicants in poor but insurable health pay $42-$54 a month at the cheapest providers — only $5-$8 more than the $37-$46 healthy-applicant rate at those same companies. Comparison shopping matters even more here, since insurers vary widely in how they underwrite conditions like high blood pressure, elevated cholesterol, or a higher BMI. One company may rate a condition as standard risk while another rates it substandard. ## How Much Coverage Do You Actually Need? There’s no single right formula, but a few methods give you a reasonable starting point. Run more than one and see where they converge. MethodFormulaExample ($75,000 income)Income multiplier (common)10-15x annual income$750,000-$1,125,000Income multiplier (basic)6-8x annual income$450,000-$600,000Age-adjusted30x income (age 18-40); 20x (41-50); 15x (51-60); 10x (61-65)Varies by ageDebts-plus-needs5x income + mortgage balance + other debt + final expenses + college costsVaries by household The income-multiplier methods are the simplest starting point, but they miss your specific obligations. The debts-plus-needs approach is more accurate for most households: add up what your family would actually need to replace — your remaining mortgage, other debts, funeral and final expenses, and any future costs like college tuition — rather than working purely off a multiple of income. **A common mistake:** assuming a stay-at-home spouse doesn’t need coverage because they don’t earn a paycheck. If that spouse died, the surviving parent would face real replacement costs — child care, household management, and everything else that income wasn’t paying for but that spouse’s labor was providing. Insurers and advisors commonly recommend $250,000-$1 million in coverage for a non-earning spouse, depending on the number and age of children involved. **Don’t rely on employer-provided coverage alone.** Most employer group policies max out at 1-2x your salary — nowhere near the 10-15x income target most guidance recommends — and that coverage typically ends the moment you leave the job. It’s a reasonable supplement, not a substitute for an individual policy you control. ## What a Death Benefit Actually Needs to Cover Beyond replacing lost income, most families underestimate the immediate cash needs a death creates. The average U.S. funeral costs $7,000-$9,000 (median around $7,360); a traditional burial with viewing runs closer to $8,300, while cremation averages under $6,300. Add a cemetery plot, headstone, flowers, and a reception, and the all-in cost climbs to $11,000-$13,000. That’s before accounting for any outstanding debt, a mortgage balance, or months of living expenses while a surviving spouse handles the estate and adjusts finances. Building a funeral-and-final-expenses line item — even a conservative $10,000-$15,000 — into your coverage target, on top of income replacement, closes a gap that pure income-multiplier math tends to miss. It’s also worth keeping a portion of that buffer liquid in [a high-yield savings account](https://savingtoinvest.com/high-yield-savings/) as part of your emergency fund, since a death benefit typically takes several weeks to process and a family may need cash sooner. ## Term vs. Whole Life: Which One Do You Need? **Term life insurance** pays a death benefit only if you die during the term (typically 10, 20, or 30 years) and has no cash value. It’s dramatically cheaper — for most people with a mortgage, dependent children, or other time-limited financial obligations, term is the more efficient choice, since it lets you buy far more coverage for the same premium. **Whole life insurance** combines a death benefit with a cash-value savings component, and premiums run many times higher for the same coverage amount. It makes more sense for permanent needs — estate planning, a dependent who will need lifelong financial support, or as a tax-advantaged savings vehicle for someone who has already [maxed out other retirement accounts](https://savingtoinvest.com/taking-advantage-of-new-401k/) — rather than as the default choice for income replacement. For most buyers in their 20s through 50s carrying a mortgage and raising kids, a 20- or 30-year term policy matched to how long those obligations will last is the more cost-effective match. One approach worth considering heading into retirement: pair a large term policy while your obligations are highest with a smaller, paid-up whole life policy that guarantees your beneficiaries get enough to cover final expenses, regardless of when you pass. ## How to Shop for the Best Rate - **Compare quotes from at least three to five insurers.** Underwriting varies enough between companies that a health condition rated “standard” at one insurer can be rated “substandard” (and priced higher) at another. - **Buy while you’re young and healthy.** Your rate locks in for the full term at the age and health status you were in when you bought the policy. Waiting even two or three years costs more, especially if your health changes in the meantime. - **Match your term length to your actual obligations** — a 20-year mortgage or kids who are 15 years from finishing college argue for a 20- or 30-year term, not a shorter, cheaper one that expires while you still need the coverage. - **Skip riders you don’t need.** Accidental death riders, return-of-premium riders, and similar add-ons increase your premium and provide limited value for most buyers — a larger base death benefit is usually the better use of the same premium dollars. - **Consider paying annually instead of monthly** if you can — many insurers charge a modest fee for monthly billing that disappears with an annual payment. The tables above are benchmarks, not quotes — get quotes from a few of the providers above to see your actual rate based on your specific age, health, and state. ## Looking Ahead: 2027 Term life rates are driven primarily by mortality-table updates and each insurer’s own underwriting data, not by anything resembling an annual cost-of-living adjustment — so don’t expect a predictable yearly increase the way you would with, say, [Social Security’s COLA](https://savingtoinvest.com/social-security-tax-and-cost-of-living-adjustment-cola/). The bigger driver of what you’ll pay next year is your own age and health: every year you wait, your premium at application goes up incrementally, and any new health diagnosis can shift you into a higher-cost underwriting class. If you’re shopping for coverage, locking in a rate this year rather than next is usually the cheaper move, assuming your health doesn’t improve enough in the meantime to offset the age increase. Frequently Asked Questions QHow much does life insurance cost for a healthy 40-year-old in 2026? AFor a 20-year, $500,000 term policy, expect to pay $37-$59 a month depending on the provider - Banner Life, Transamerica, and Penn Mutual price lowest among major insurers, while the average across all providers runs $47 (women) to $59 (men). QHow much life insurance coverage do I actually need? AA common starting point is 10-15 times your annual income, though the more precise approach adds up your specific obligations: remaining mortgage balance, other debts, final expenses (funeral costs plus a buffer, typically $10,000-$15,000), and future costs like college tuition, then adjusts for how many years of income replacement your family needs. QDoes smoking really triple my life insurance premium? AYes. A 40-year-old smoker pays roughly $121-$195 a month for the same policy that costs a nonsmoker $37-$59 a month. If you quit, most insurers will reclassify you as a nonsmoker after 12-24 months of verified tobacco-free status. QShould I get term or whole life insurance? ATerm life is cheaper and better suited to time-limited needs like a mortgage or dependent children - it lets you buy far more coverage per premium dollar. Whole life makes more sense for permanent needs like estate planning or lifelong dependent support, since it carries a cash-value component and much higher premiums for the same death benefit. QIs my employer's life insurance enough coverage? AUsually not on its own. Most employer group policies cap out at 1-2x your salary, well below the 10-15x income target most guidance recommends, and the coverage typically ends when you leave the job. It works well as a supplement to an individual policy, not a replacement for one. QDoes a stay-at-home parent need life insurance? AYes. Even without a paycheck, a stay-at-home parent's death creates real replacement costs - child care, household management, and other services that income wasn't covering but their labor was providing. $250,000-$1 million in coverage is a common range depending on the number and age of children. **Categories:** Insurance **Tags:** Coverage, death, life insurance, policy, prices, saving --- ### [Average vs. Median Net Worth by Age in 2026: Are You Ahead or Behind?](https://savingtoinvest.com/average-net-worth-by-age/) **Published:** July 27, 2026 **Author:** Andy **Content:** ### Key Takeaways - Median U.S. household net worth in 2026 is about $192,700, ranging from $39,000 (under 35) to $410,000 (65-74). - Mean net worth is about $1.06 million — over 5x the median, skewed by very wealthy households. - Figures come from the Fed's 2022 Survey of Consumer Finances, adjusted for inflation through 2026. - Net worth peaks at ages 65-74, then typically declines in retirement as savings get drawn down. The median American household has a net worth of about **$192,700** in 2026. If that number feels either way too low or suspiciously high compared to what you’d guess, you’re not alone — most people have never seen this broken out by age, and the “average” figure everyone quotes ($1.06 million) is wildly misleading for anyone who isn’t already wealthy. Net worth is simply everything you own minus everything you owe: home equity, retirement accounts, savings, and investments, minus your mortgage, credit cards, student loans, and other debt. Here’s how it actually breaks down by age, why the median tells a very different story than the average, and where you stand. Covered in this Article: [Toggle](#) - [Median Net Worth by Age in 2026](#Median_Net_Worth_by_Age_in_2026) - [Average (Mean) Net Worth by Age — And Why It’s Misleading](#Average_Mean_Net_Worth_by_Age_%E2%80%94_And_Why_Its_Misleading) - [Why the Data Lags — And What “2026” Actually Means Here](#Why_the_Data_Lags_%E2%80%94_And_What_%E2%80%9C2026%E2%80%9D_Actually_Means_Here) - [Net Worth vs. Income — They’re Not the Same Thing](#Net_Worth_vs_Income_%E2%80%94_Theyre_Not_the_Same_Thing) - [What Actually Drives Net Worth Growth by Age](#What_Actually_Drives_Net_Worth_Growth_by_Age) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) ## Median Net Worth by Age in 2026 This is the number that matters most for figuring out where you actually stand relative to your peers. Median means the exact middle of the pack — half of households in that age group have more, half have less. Age GroupMedian Net Worth (2026, inflation-adjusted)Under 35$39,00035–44$135,60045–54$247,20055–64$364,50065–74$410,00075+$335,000 *Source: Federal Reserve Survey of Consumer Finances (SCF), 2022 data, adjusted for inflation through 2026.* Notice that net worth doesn’t just keep climbing forever — it peaks in the 65–74 bracket and actually drops for the 75+ group. That’s a normal, expected pattern: retirees draw down savings and investments to cover living expenses once regular paychecks stop. ## Average (Mean) Net Worth by Age — And Why It’s Misleading The average, or mean, tells a very different story because it factors in every dollar of wealth in the group, including the outsized fortunes at the top. Age GroupMean Net Worth (2026, inflation-adjusted)Under 35$183,50035–44$549,60045–54$975,80055–64$1,566,90065–74$1,794,60075+$1,624,000 Look at the gap: the mean for someone under 35 is over four and a half times higher than the median for the same age group. That gap isn’t a typo — it’s the effect of a relatively small number of ultra-wealthy young households (tech founders, inheritors, early crypto winners) dragging the average way up, while the typical 30-year-old is nowhere near it. **My take:** if you want an honest answer to “am I normal for my age,” use the median table. The average is really only useful for understanding total national wealth, not for benchmarking yourself. **Example — Priya**, 32, has $45,000 in net worth between her 401(k), a modest emergency fund, and her car equity, after subtracting her student loans. Against the under-35 median of $39,000, she’s actually running slightly ahead of her age group — even though the $183,500 “average” for her bracket might make her feel behind. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) — I’ll update this table as soon as the Fed publishes fresh Survey of Consumer Finances data.* ## Why the Data Lags — And What “2026” Actually Means Here One honest caveat: the Federal Reserve only runs the Survey of Consumer Finances every three years, and the most recently published full dataset is from 2022. The 2026 figures above are the 2022 numbers adjusted forward for inflation and broad market growth — a standard, widely used approach, but not literally a fresh 2026 survey. The Fed’s next full SCF release, covering 2025 data, isn’t expected to be published until sometime later in 2026 or into 2027, based on the survey’s typical release cadence. When that data lands, I’ll update every number on this page. ## Net Worth vs. Income — They’re Not the Same Thing I get this question a lot, so it’s worth being direct: **your income and your net worth can move in completely different directions.** A household earning $250,000 a year with no retirement savings, a maxed-out home equity line, and two leased luxury cars can have a lower net worth than a household earning $70,000 that’s saved consistently for 20 years. If you want to see where your household income specifically ranks, I break that down separately in my [upper middle class income thresholds guide](https://savingtoinvest.com/are-you-upper-middle-class/), which covers income percentiles by state — a genuinely different metric from the net worth numbers on this page. **Example — the Torres household**, both professionals earning a combined $220,000 a year, have $18,000 in net worth after 12 years of working — high income, but heavy spending and two car loans have kept their net worth thin. **The Chen household**, earning a combined $95,000, has $310,000 in net worth after the same 12 years, built through [consistent 401(k) contributions](https://savingtoinvest.com/taking-advantage-of-new-401k/) and [an extra mortgage payment each year](https://savingtoinvest.com/should-i-refinance-my-mortgage-and-do-i-qualify/). Same time horizon, dramatically different outcomes, because net worth tracks what you keep, not what you earn. ## What Actually Drives Net Worth Growth by Age A few patterns show up consistently in this data: - **Home equity dominates in midlife.** For most households in the 45–64 range, home equity is the single largest component of net worth — often larger than retirement accounts combined. - **Retirement accounts compound hardest in the 55–74 range**, as decades of [contributions and compounding](https://savingtoinvest.com/power-of-compounding-1-million-now-or/) finally show up as large balances. - **The under-35 median is thin because of timing, not failure.** [Student loan balances](https://savingtoinvest.com/5-tips-for-paying-off-student-debt-faster/), early-career income, and the years before home equity or retirement compounding kicks in all suppress net worth for younger households — it’s the normal shape of the curve, not a warning sign on its own. ## Common Issues to Watch Out For A few mistakes I see people make when they benchmark themselves against tables like this. **Comparing yourself to the average instead of the median.** This is the single biggest distortion. The average for your age bracket can be 3-5x the median because of a small number of extremely wealthy households — the median is almost always the fairer comparison. **Counting home value without subtracting the mortgage.** Net worth uses home *equity* (value minus what you still owe), not the full market value of your house. Counting the gross value inflates your number significantly if you still have a large mortgage balance. **Ignoring debt entirely.** Net worth is assets minus liabilities. A large 401(k) balance sitting next to $80,000 in credit card and student loan debt doesn’t make for a strong net worth position — the debt side matters just as much as the asset side. **Treating a single year’s dip as a crisis.** Net worth fluctuates with market performance and home values. A down year in the stock market can meaningfully reduce net worth without reflecting any actual change in your saving habits or financial discipline. **Forgetting these are national figures.** Cost of living varies enormously by region. A $250,000 net worth at age 45 looks very different in rural Mississippi (MS) than in the San Francisco Bay Area, even though the national median doesn’t adjust for that. ## Looking Ahead: 2027 Outlook The biggest thing on my radar is the Fed’s next full Survey of Consumer Finances release, covering 2025 data — once that publishes, likely sometime in 2026 or 2027, every figure on this page gets a real refresh rather than an inflation-adjusted estimate. I’m also watching how a still-elevated stock market and continued home price appreciation through 2026 are likely to push both the mean and median figures for older age brackets higher when that new data lands, given how much of net worth for 55+ households sits in home equity and retirement accounts. I’ll update this page the moment the Fed publishes new numbers. Frequently Asked Questions QWhat is the average net worth by age in 2026? AThe mean net worth ranges from about $183,500 for households under 35 to $1.79 million for ages 65-74. But the mean is skewed heavily upward by very wealthy households - the median is a far more representative benchmark for most people. QWhat is the median net worth by age in 2026? ARoughly $39,000 under 35, $135,600 at 35-44, $247,200 at 45-54, $364,500 at 55-64, $410,000 at 65-74, and $335,000 for 75+, based on Federal Reserve data adjusted for inflation. QWhy is average net worth so much higher than median net worth? ABecause a small number of extremely wealthy households pull the average way up. Median represents the household squarely in the middle of the distribution, which is a more honest benchmark for typical households. QAt what age does net worth peak? ANet worth typically peaks in the 65-74 age bracket, then declines somewhat in the 75+ group as retirees draw down savings and investments to cover living expenses. QIs net worth the same as income? ANo. Income measures what you earn; net worth measures what you've kept and built over time (assets minus debts). A high earner with heavy spending can have a lower net worth than a moderate earner who saves consistently. QHow often does the government update net worth by age data? AThe Federal Reserve's Survey of Consumer Finances, the primary source for this data, is conducted only once every three years. The most recent full dataset is from 2022; the next one covering 2025 data is expected in 2026 or 2027. QWhat counts toward net worth? AAssets include home equity, retirement accounts, savings, investments, and other property. Liabilities include your mortgage balance, credit card debt, student loans, auto loans, and any other money you owe. Net worth is assets minus liabilities. **Categories:** Taxes and Retirement --- ### [2026-2027 Small Business Retirement Plans — Solo 401(k), SEP IRA, SIMPLE IRA, and ESOP](https://savingtoinvest.com/small-business-retirement-plans-401k-sep-ira-simple-ira-and-esop-plans/) **Published:** August 12, 2011 **Author:** Andy **Content:** ### Key Takeaways - Solo 401(k) and SEP IRA both cap at $72,000 in 2026, but the Solo 401(k) allows catch-up contributions. - The SIMPLE IRA limit is $17,000 in 2026 ($18,100 for small employers) — easiest to administer, lowest ceiling. - Solo 401(k) suits solo self-employed workers best; SEP IRA wins for simplicity and a later contribution deadline. - All three plans are fully tax-deductible, and you can run more than one plan type. If you’re self-employed or running a small business, the retirement account options available to you are frankly better than what most corporate employees get — and most people don’t fully take advantage of them. I hear from a lot of small business owners who are using a regular Roth or Traditional IRA when they could be sheltering $40,000, $50,000, or even $70,000+ a year. The gap between “what I could contribute” and “what I’m actually contributing” is one of the biggest missed opportunities in personal finance for the self-employed. This page covers the main plans for 2026: the Solo 401(k), SEP IRA, SIMPLE IRA, and ESOP. The first three are the ones most self-employed individuals will actually consider — I’ll lay out the limits, who qualifies, and which one tends to win in different situations. For deeper dives, I’ve linked out to our dedicated posts for [SEP IRA rules and limits](https://savingtoinvest.com/sep-ira-rules-and-contribution-limits/) and [SIMPLE IRA limits](https://savingtoinvest.com/simple-ira-contribution-and-income-limits-small-business-retirement-plans/). Covered in this Article: [Toggle](#) - [Solo or Individual 401(k) Plans](#Solo_or_Individual_401k_Plans) - [2026 Solo 401(k) Contribution Limits](#2026_Solo_401k_Contribution_Limits) - [SIMPLE IRA](#SIMPLE_IRA) - [2026 SIMPLE IRA Contribution Limits](#2026_SIMPLE_IRA_Contribution_Limits) - [SEP IRA](#SEP_IRA) - [2026 SEP IRA Contribution Limits](#2026_SEP_IRA_Contribution_Limits) - [ESOP Plans](#ESOP_Plans) - [Which Plan Is Right for You?](#Which_Plan_Is_Right_for_You) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## Solo or Individual 401(k) Plans The Solo 401(k) — also called an Individual 401(k) or One-Participant 401(k) — is available to self-employed individuals and business owners with no full-time employees other than a spouse. In this setup, you act as both employee and employer, which lets you make contributions from both sides. That double contribution structure is what makes it so powerful. As the “employee,” you can defer up to $24,500 in 2026. As the “employer,” you can add a profit-sharing contribution of up to 25% of your W-2 wages (or ~20% of net self-employment income after SE tax). Combined, you can reach the Section 415(c) cap of $72,000 — and those over 50 can exceed it with catch-up contributions. ### 2026 Solo 401(k) Contribution Limits YearEmployee DeferralTotal Limit (415c)Catch-Up (age 50–59, 64+)Super Catch-Up (age 60–63)2022$20,500$61,000$6,500N/A2023$22,500$66,000$7,500N/A2024$23,000$69,000$7,500N/A2025$23,500$70,000$7,500$11,2502026$24,500$72,000$8,000$11,2502027 (est.)$25,000$74,000$8,000$11,625 **Looking ahead to 2027:** The 415(c) total limit should hit approximately $74,000 based on ~2.5% COLA. The employee deferral is likely to reach $25,000. Catch-up limits typically lag by a year or two on inflation adjustments. Official numbers arrive with the October/November IRS announcement. One feature I think is underappreciated: Solo 401(k) plans now support **Roth contributions** following SECURE 2.0. That means you can direct some or all of your employee deferrals to a Roth bucket — tax-free growth, no required minimum distributions. SEP IRAs don’t have that option. For higher earners who expect their tax rate to stay elevated in retirement, that can be a meaningful difference. **The catch:** the Solo 401(k) plan must be **established by December 31** of the year you want to make contributions for. You can fund it up to your tax filing deadline, but the plan itself needs to exist first. This is where people get caught — if you wait until March to open one for the prior year, you’re out of luck. Also, it’s limited to businesses with **no non-spouse employees**. The moment you hire a full-time W-2 employee, you generally lose Solo 401(k) eligibility and need to transition to a different plan. For a full comparison of the Solo 401(k) and SEP IRA side by side — including the formula for self-employed contribution calculations — see our [SEP IRA and Solo 401(k) guide](https://savingtoinvest.com/sep-ira-rules-and-contribution-limits/). ## SIMPLE IRA The SIMPLE IRA (Savings Incentive Match Plan for Employees) is designed for small businesses with up to 100 employees. It’s the easiest plan to set up and maintain — no discrimination testing, minimal paperwork, and low administrative cost. The tradeoff is a lower contribution ceiling than a Solo 401(k) or SEP IRA. SIMPLE IRAs require an employer contribution. You have two options: a dollar-for-dollar match up to 3% of employee compensation, or a 2% nonelective contribution for all eligible employees (whether they contribute or not). That mandatory employer contribution is baked in — it’s part of the deal. ### 2026 SIMPLE IRA Contribution Limits Contribution Type2024202520262027 (est.)Standard employee deferral$16,000$16,500**$17,000**$17,500Small employer plan (≤25 employees)$17,600$17,600**$18,100**$18,600Catch-up (age 50–59, 64+)$3,500$3,500**$4,000**$4,000Super catch-up (age 60–63)$3,500$5,250**$5,250**$5,250 One important rule that catches people: the **2-year restriction**. Funds held in a SIMPLE IRA for less than 2 years since your first contribution cannot be rolled over to a regular IRA or 401(k). Rolling out early triggers a 25% penalty (vs. the standard 10%). After two years, the account acts like a regular Traditional IRA for rollover purposes. For full details, see our dedicated [SIMPLE IRA contribution limits post](https://savingtoinvest.com/simple-ira-contribution-and-income-limits-small-business-retirement-plans/). ## SEP IRA The SEP IRA (Simplified Employee Pension) is the go-to for self-employed individuals who want high contribution limits without the administrative complexity of a 401(k). Contributions come entirely from the employer side — there’s no employee elective deferral component. ### 2026 SEP IRA Contribution Limits YearSEP IRA LimitCompensation Cap2023$66,000$330,0002024$69,000$345,0002025$70,000$350,0002026**$72,000**$360,0002027 (est.)$74,000$370,000 The limit is the lesser of $72,000 or 25% of compensation. For self-employed individuals, the effective rate works out to roughly 18–20% of net self-employment income after accounting for the SE tax deduction — not exactly 25%. The big advantage over the Solo 401(k) is the contribution deadline: you can fund a SEP IRA all the way up to your **tax filing deadline including extensions** (October 15 with an extension). You can even open a new SEP IRA for a prior tax year during that window. This gives significant flexibility for self-employed individuals who don’t know their final income until late. If you have employees, the SEP IRA requires you to contribute the same percentage of compensation for all eligible workers as you contribute for yourself. That mandatory requirement often makes it less attractive for business owners with staff. ## ESOP Plans An ESOP (Employee Stock Ownership Plan) is a different category entirely — it’s not primarily a contribution vehicle but a way to make employees partial owners of the company through stock. ESOPs are more common in mid-size private businesses as a succession tool or ownership transition mechanism. In an ESOP, the company sets up a trust and contributes shares of company stock (or cash to purchase shares). Employees receive allocations over time, subject to vesting schedules. When employees leave, the company buys back shares at fair market value. ESOPs are tax-deductible for the employer (within limits), and there are significant estate planning advantages for business owners selling a majority stake. They’re complex and expensive to set up — typically suitable for businesses with at least 20–30 employees and real company equity to transfer. ## Which Plan Is Right for You? A quick framework: - **Solo self-employed, want the highest possible contribution:** Solo 401(k) — especially if you want catch-up contributions or a Roth option. - **Self-employed, want simplicity and a late deadline:** SEP IRA — open it in October if you had a good year and want to reduce your tax bill. - **Small business with employees, want low admin:** SIMPLE IRA — mandatory employer match is the cost, but setup is easy and costs are low. - **Looking to transition ownership:** ESOP — consult a specialist, this isn’t a DIY setup. And don’t forget: if you have a W-2 job in addition to self-employment income, you can generally also contribute to [your employer’s 401(k) plan](https://savingtoinvest.com/taking-advantage-of-new-401k/) — the limits are separate from SEP IRA limits, and combining them can significantly increase total tax-sheltered savings. Things can shift quickly when it comes to legislation and contribution limits. I’ll update this page when new information comes in — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## Common Issues to Watch Out For **Missing the Solo 401(k) establishment deadline.** The plan must exist by December 31. I see this mistake every year — someone has a great self-employment income year, tries to open a Solo 401(k) in February to capture the deduction, and finds out they can’t. The SEP IRA doesn’t have this problem: you can open and fund it up to your tax filing deadline. **Over-contributing when you have multiple plans.** If you have a W-2 job and self-employment income, the $24,500 employee deferral limit is per person, not per plan. You can’t contribute $24,500 to your employer’s 401(k) and another $24,500 to your Solo 401(k). The employer profit-sharing portion of the Solo 401(k) is separate and can stack. **Using the wrong SEP IRA formula.** The “25% of compensation” rule doesn’t mean 25% of gross self-employment income. The SE tax deduction changes the math — the effective rate is closer to 18–20%. Running the wrong calculation leads to over-contributions and IRS penalties. **SIMPLE IRA early rollover penalty.** Rolling funds out of a SIMPLE IRA within the first two years since your first contribution triggers a 25% penalty, not the standard 10%. Most people don’t know this until it’s too late. **Assuming SEP IRA and SIMPLE IRA can coexist.** Generally, an employer cannot maintain both a SEP IRA and a SIMPLE IRA covering the same employees in the same year. Frequently Asked Questions QCan I have both a Solo 401(k) and a SEP IRA? AGenerally not for the same business in the same year. However, if you have multiple businesses, each business can have its own plan. You also can't maintain a Solo 401(k) if you have non-spouse employees. QWhat's the deadline to open and fund a SEP IRA for 2026? AYou can open and fund a SEP IRA for 2026 all the way until your 2026 tax filing deadline including extensions - which is October 15, 2027, if you file for an extension. The Solo 401(k) must be established by December 31, 2026, though you can fund it up to your filing deadline. QCan a self-employed person contribute to both a Solo 401(k) and a regular IRA? AYes. The Solo 401(k) and Traditional/Roth IRA contribution limits are separate. You can max out a Solo 401(k) and still contribute up to $7,500 to an IRA in 2026 (subject to Roth income phase-outs and Traditional IRA deductibility rules). See our Traditional vs. Roth IRA guide for income limits. QDoes the 2026 SIMPLE IRA limit apply to all employers? AThe standard limit is $17,000. Employers with 25 or fewer employees may offer a higher limit of $18,100 by electing 'applicable employer plan' status. Employers with 26-100 employees can also access the higher limit but must provide a more generous employer match (4% or 3% nonelective). QIs a SEP IRA contribution tax-deductible? AYes - SEP IRA contributions are fully deductible as a business expense (for employer contributions made on behalf of employees) or as an above-the-line deduction on Schedule 1 (for self-employed individuals). They also reduce AGI, which can help qualify for other deductions and credits like the Saver's Credit. QWhat is the 2026 contribution limit for a Solo 401(k)? AThe total 415(c) limit is $72,000 in 2026 (combined employee deferrals + employer profit-sharing). If you're 50-59 or 64+, you can add a $8,000 catch-up contribution. If you're 60-63, the super catch-up under SECURE 2.0 is $11,250, for a potential total of $83,250. **Categories:** Taxes and Retirement **Tags:** 401K, business, ESOP, IRA, SEP IRA, Simple IRA, taxes, trust --- ### [2026 Federal IRS Tax Brackets, Tax Rates, and Standard Deduction — With 2027 Projections](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/) **Published:** September 12, 2015 **Author:** Andy **Content:** ### Key Takeaways - The 2026 standard deduction is $16,100 (single), $32,200 (MFJ), and $24,150 (head of household). - All seven tax rates (10%-37%) are unchanged for 2026 under the OBBB-extended TCJA structure. - The 37% top rate applies to single filers earning over $640,600 and married filers over $768,700. - OBBB permanently eliminated personal exemptions and retroactively raised the 2025 standard deduction to $15,750 single. The 2026 federal income tax brackets are confirmed, and with inflation running around 3.5–4% in early 2026, I’m already watching what 2027 is likely to bring. The IRS typically announces next year’s figures in October or November, so this page will get another update then. Short version for 2026: same seven rates (10%–37%), but all the income thresholds and standard deductions moved up. The [One Big Beautiful Bill (OBBB)](https://savingtoinvest.com/reconciling-trumps-big-beautiful-bill-bbb/) also layered an enhanced standard deduction on top of what inflation adjustment alone would have produced — so the 2026 standard deduction is **$16,100 for single filers** and **$32,200 for married filing jointly**. --- ## 2026 Tax Brackets (for returns filed in 2027) These are the official confirmed numbers from [IRS Revenue Procedure 2025-32](https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill), released October 9, 2025. OBBB changed the 2026 picture in two meaningful ways. First, it made the TCJA rate structure permanent — no more cliff where rates would have jumped back to pre-2018 levels. Second, it added a temporary enhanced standard deduction on top of the regular inflation adjustment. That enhancement runs through 2028. Tax RateSingle FilersMarried Filing JointlyHead of HouseholdMarried Filing Separately**Std. Deduction****$16,100****$32,200****$24,150****$16,100**10%$0 to $12,400$0 to $24,800$0 to $17,000$0 to $12,40012%$12,401 to $50,400$24,801 to $100,800$17,001 to $64,850$12,401 to $50,40022%$50,401 to $105,700$100,801 to $211,100$64,851 to $105,700$50,401 to $105,70024%$105,701 to $201,775$211,401 to $403,550$105,701 to $201,775$105,701 to $201,77532%$201,776 to $256,225$403,551 to $512,450$201,776 to $256,225$201,776 to $256,22535%$256,226 to $640,600$512,451 to $768,700$256,226 to $640,600$256,226 to $384,35037%Over $640,600Over $768,700Over $640,600Over $384,350 A few other 2026 items worth noting: the [AMT exemption](https://savingtoinvest.com/alternative-minimum-tax-amt-and-exemption-amounts/) for single filers is $90,100 (phases out at $500,000), and the **estate tax exclusion** rises to $15,000,000. The **annual gift exclusion** holds at $19,000 per recipient. --- ## 2027 Tax Brackets (2028 filings)— Projected Estimates The IRS won’t release official 2027 figures until fall 2026, but with CPI running 3.5–4% in the first half of 2026, we can make reasonable estimates. These are projections based on applying roughly 3.5% to the 2026 bracket thresholds and standard deductions. The actual numbers will depend on the chained CPI reading from September 2026 — I’ll update this section the moment the IRS announces officially. The OBBB enhanced deduction ($1,000 single / $2,000 MFJ / $1,500 HoH) is still in effect for 2027 — it runs through 2028 — so that’s already baked into these estimates. Tax RateSingle FilersMarried Filing JointlyHead of HouseholdMarried Filing Separately**Std. Deduction (est.)****~$16,700****~$33,400****~$25,000****~$16,700**10%$0 to ~$12,850$0 to ~$25,650$0 to ~$17,600$0 to ~$12,85012%~$12,851 to ~$52,150~$25,651 to ~$104,300~$17,601 to ~$67,100~$12,851 to ~$52,15022%~$52,151 to ~$109,400~$104,301 to ~$218,500~$67,101 to ~$109,400~$52,151 to ~$109,40024%~$109,401 to ~$208,850~$218,501 to ~$417,700~$109,401 to ~$208,850~$109,401 to ~$208,85032%~$208,851 to ~$265,200~$417,701 to ~$530,400~$208,851 to ~$265,200~$208,851 to ~$265,20035%~$265,201 to ~$663,000~$530,401 to ~$795,600~$265,201 to ~$663,000~$265,201 to ~$397,80037%Over ~$663,000Over ~$795,600Over ~$663,000Over ~$397,800 *These are estimates only. Official 2027 brackets will be released by the IRS in October/November 2026. I’ll update this table then.* If inflation surprises to the upside (say 4.5%+), all thresholds would shift another percentage point or so higher. If it cools back toward 2.5%, they’d land slightly below these estimates. *[Subscribe here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get notified when the IRS releases the official 2027 figures this fall.* ## 2025 Tax Brackets (for returns filed in 2026) OBBB retroactively raised the 2025 standard deduction above what the IRS had originally set. The original figures were $15,000 (single) and $30,000 (MFJ) — OBBB bumped them to the amounts in the table below. If you filed before OBBB was signed on July 4, 2025 and your situation was close to the line, an amended return may be worth looking at. Tax RateSingle FilersMarried Filing JointlyHead of HouseholdMarried Filing Separately**Std. Deduction****$15,750****$31,500****$23,625****$15,750**10%$0 to $11,925$0 to $23,850$0 to $17,000$0 to $11,92512%$11,926 to $48,475$23,851 to $96,950$17,001 to $64,850$11,926 to $48,47522%$48,476 to $103,350$96,951 to $206,700$64,851 to $103,350$48,476 to $103,35024%$103,351 to $197,300$206,701 to $394,600$103,351 to $197,300$103,351 to $197,30032%$197,301 to $250,525$394,601 to $501,050$197,301 to $250,525$197,301 to $250,52535%$250,526 to $626,350$501,051 to $751,600$250,501 to $626,350$250,526 to $375,80037%Over $626,350Over $751,600Over $626,350Over $375,800 The 2025 adjustment overall was about 2.7%. Retirement contribution limits for [401k and IRA plans](https://savingtoinvest.com/401k-ira-and-roth-ira-contribution-and-income-limits/) follow a similar annual cycle and have their own 2025 figures. --- ## 2024 Tax Brackets (for returns filed in 2025) The 2024 adjustment was about 5.4%, down from the record ~7% expansion in 2023 as inflation cooled. Tax RateSingle FilersMarried Filing JointlyHead of HouseholdMarried Filing Separately**Std. Deduction****$14,600****$29,200****$21,900****$14,600**10%Up to $11,600Up to $23,200Up to $16,550Up to $11,60012%$11,601 to $47,150$23,201 to $94,300$16,551 to $63,100$11,601 to $47,15022%$47,151 to $100,525$94,301 to $201,050$63,101 to $100,500$47,151 to $100,52524%$100,526 to $191,950$201,051 to $383,900$100,501 to $182,100$100,526 to $191,95032%$191,951 to $243,725$383,901 to $487,450$182,101 to $231,250$191,951 to $243,72535%$243,726 to $609,350$487,451 to $731,200$231,251 to $578,100$243,726 to $365,60037%Over $609,350Over $731,200Over $578,100Over $365,600 --- ## How the Progressive Tax System Works — Two Examples Federal income tax is progressive: you only pay each rate on the income that falls within that bracket, not on your full income. **Example 1 — Single filer, $80,000 taxable income (2026):** After taking the $16,100 standard deduction, Sarah has $80,000 in taxable income. She pays 10% on the first $12,400 ($1,240), 12% on $12,401–$50,400 ($4,560), and 22% on $50,401–$80,000 ($6,512). Total federal tax: **$12,312** — an effective rate of about 15.4%, not 22%. **Example 2 — Married filing jointly, $200,000 taxable income (2026):** After taking the $32,200 standard deduction, Mark and Lisa report $200,000 in taxable income. They pay 10% on the first $24,800, 12% on $24,801–$100,800, and 22% on $100,801–$200,000. Total federal tax: approximately **$33,580** — an effective rate well below their 22% marginal rate. Use [tax software](https://savingtoinvest.com/the-best-tax-software-and-free-filing-options-as-tax-filing-goes-primarily-online/) to factor in all credits and deductions specific to your situation. --- ## Historical Brackets: 2018–2023 Reference The same seven rates (10%–37%) applied in all of these years. Only the income thresholds changed. For full historical tables, the IRS archives Rev. Proc. documents going back to 2018. Tax YearSingle Std. DeductionMFJ Std. Deduction10% Bracket Ends (Single)37% Rate Starts (Single)2023$13,850$27,700$11,000$578,1262022$12,950$25,900$10,275$539,9012021$12,550$25,100$9,950$523,6012020$12,400$24,800$9,875$518,4012019$12,200$24,400$9,700$510,3012018$12,000$24,000$9,525$500,001 Note: 2017 and prior years used different rates (15%, 25%, 28%, 33%, 39.6% at the top) plus a $4,050 personal exemption per person — a fundamentally different structure. The TCJA overhauled everything starting in 2018. --- ## Common Issues to Watch For A few things I see come up repeatedly: **Confusing marginal rate with effective rate.** Your “tax bracket” is the rate on your last dollar of income, not what you pay on everything. Most people’s effective rate is well below their marginal rate because the lower brackets fill up first. **Forgetting OBBB changed the 2025 numbers retroactively.** If you estimated your 2025 taxes before July 4, 2025, you may have used the original $15,000/$30,000 standard deduction. The actual 2025 amounts ($15,750/$31,500) are higher, which means a bigger deduction and potentially a smaller tax bill. **Using the wrong deduction for your filing status.** [Head of household gets a significantly better standard deduction than single](https://savingtoinvest.com/pick-your-correct-tax-filing-status-to-minimize-your-taxes/) — $24,150 vs. $16,100 in 2026. The IRS has strict rules on who qualifies (generally: unmarried, paying more than half the cost of a home for a qualifying person). **Missing the senior standard deduction add-on.** Taxpayers 65 or older can claim an extra standard deduction of $2,050 (single) or $1,650 per qualifying spouse (MFJ) for 2026. It doesn’t show up in the main bracket table but can meaningfully cut taxable income. **Assuming the OBBB bonus deduction is permanent.** The $1,000/$2,000/$1,500 enhanced standard deduction runs through 2028 only. In 2029 it reverts to the base inflation-adjusted figure unless Congress extends it — something to watch heading into the next legislative cycle. --- Frequently Asked Questions QWhat are the 2026 federal income tax brackets? AFor 2026, the seven tax rates are 10%, 12%, 22%, 24%, 32%, 35%, and 37%. For single filers, the 10% rate applies to taxable income up to $12,400, and the 37% rate kicks in above $640,600. Married filing jointly filers have higher thresholds - the 37% bracket starts above $768,700. QWhat is the standard deduction for 2026? AThe 2026 standard deduction is $16,100 for single filers and married individuals filing separately, $32,200 for married filing jointly, and $24,150 for heads of household. These amounts are higher than 2025 due to both inflation adjustment and the OBBB's temporary enhanced deduction of $1,000-$2,000 (running 2025-2028). QDid the One Big Beautiful Bill change the 2026 tax brackets? AOBBB made the TCJA tax rates permanent and increased the standard deduction above what inflation alone would have produced. The bracket thresholds still reflect normal annual inflation adjustments. OBBB also permanently eliminated any limitation on itemized deductions, though it caps the tax benefit from itemized deductions for those in the top 37% bracket. QWhat is the standard deduction for 2025? AFor 2025, the standard deduction was retroactively raised by OBBB to $15,750 (single or MFS), $31,500 (MFJ), and $23,625 (head of household). The original pre-OBBB IRS amounts were $15,000 and $30,000. QWhat are the estimated 2027 tax brackets? ABased on ~3.5% inflation through mid-2026, estimated 2027 figures are: standard deduction ~$16,700 (single) and ~$33,400 (MFJ); 10% bracket ending at ~$12,850 (single); 37% bracket starting around ~$663,000 (single). These are projections - the IRS will release official 2027 figures in October/November 2026. QWhat's the difference between marginal tax rate and effective tax rate? AYour marginal rate is the percentage you pay on the last dollar of income. Your effective rate is your total tax divided by total income. Because the US uses a progressive system where each rate only applies to income within that bracket's range, your effective rate is always lower than your marginal rate. QAre personal exemptions available in 2026? ANo. Personal exemptions remain at $0 for 2026. The TCJA eliminated them starting in 2018, and OBBB made that elimination permanent. Taxpayers 65 or older can claim an additional standard deduction amount, but that's separate from the old personal exemption structure. QWhen will the 2027 tax brackets be released? AThe IRS typically releases the following year's inflation adjustments in October or November. For 2027, expect an official announcement in fall 2026. I'll update this page as soon as those numbers are out. **Categories:** ETFs and Mutual Funds, Taxes and Retirement **Tags:** deduction, federal, IRS, refund, Tax Brackets, Tax Rates --- ### [The Social Security Fake Call Transfer Scam - How It Works and How to Shut It Down](https://savingtoinvest.com/social-security-fake-call-transfer-scam/) **Published:** September 7, 2026 **Author:** Andy **Content:** ### Key Takeaways - SSA warns of a 'fake call transfer' scam - no agency can transfer your call to Social Security. - A fake 'SSA rep' claims your SSN was compromised, pressuring you to verify data or pay a fee. - Scammers also send fake 'COLA adjustment' calls and texts timed to real cost-of-living-adjustment news. - Caller ID can be spoofed to show SSA's real number - don't trust it as proof of who's calling. - Real SSA account problems are communicated by mail first, never by a surprise call demanding immediate action. - Government-impersonation complaints to the FTC rose about 25% to over 330,000 in 2025. The Social Security Administration recenty issued a fresh warning about a scam making the rounds: the “fake call transfer.” A caller posing as a retailer, tech support line, or another government agency tells you they’re “transferring” your call directly to Social Security — and then a second scammer picks up, posing as an SSA representative, claiming your identity has been stolen. Here’s the tell: no legitimate business or government agency can actually route your call directly into SSA’s phone system. If someone claims they’re doing that, you’re already talking to a scammer. This is part of a broader wave of SSA impersonation scams active right now, and the tactics keep shifting. Here’s what’s actually happening, and how to shut it down before it costs you anything. Covered in this Article: [Toggle](#) - [How the “Fake Call Transfer” Scam Actually Works](#How_the_%E2%80%9CFake_Call_Transfer%E2%80%9D_Scam_Actually_Works) - [Other Active SSA Scams to Know About Right Now](#Other_Active_SSA_Scams_to_Know_About_Right_Now) - [Why You Can’t Trust Caller ID Anymore](#Why_You_Cant_Trust_Caller_ID_Anymore) - [What To Do If You Get a Suspicious Call](#What_To_Do_If_You_Get_a_Suspicious_Call) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: What I’m Watching For](#Looking_Ahead_What_Im_Watching_For) ## How the “Fake Call Transfer” Scam Actually Works The scam typically starts with an unrelated call — someone claiming to be from a retailer, a tech support company, or a different government office entirely. Partway through, they tell you there’s a problem only Social Security can resolve, and offer to “transfer” you. What actually happens is the same scammer (or an accomplice) simply continues the call under a new persona, now claiming to be an SSA employee. There’s no real transfer taking place. The fake “SSA rep” then tells you your Social Security number has been linked to fraud, drugs, or money laundering — language designed to scare you into compliance. From there, the ask is usually one of two things: verify your full SSN, date of birth, and banking details “to confirm your identity,” or pay a fee, sometimes framed as needing a “new SSN” to protect yourself. **Neither of those is something SSA does over the phone.** SSA never asks you to pay for a new Social Security number — that’s not even a real service the agency offers. ## Other Active SSA Scams to Know About Right Now The fake call transfer isn’t the only tactic in circulation this year. A few others SSA and consumer-protection groups are flagging: **Fake “COLA adjustment” calls and texts.** Scammers time these to real cost-of-living-adjustment news, claiming you need to “confirm” your information to receive your updated benefit amount. Real [COLA ](https://savingtoinvest.com/social-security-tax-and-cost-of-living-adjustment-cola/)increases are applied automatically — you never need to call anyone or click a link to receive one. **Benefit suspension threats.** A caller claims your benefits have been suspended or will be suspended due to suspicious activity, and demands immediate payment or your SSN to reinstate them. SSA doesn’t threaten suspension over the phone — account issues are communicated by mail. **Spoofed SSA phone numbers.** Scammers can make your caller ID display SSA’s real published number, even though the call has nothing to do with the agency. **Phishing emails requesting “verification.”** These direct you to a fake login page designed to steal your my Social Security account credentials. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to stay current as SSA flags new scam tactics — these scripts change often.* ## Why You Can’t Trust Caller ID Anymore This is the detail that trips up even cautious people: scammers can spoof caller ID to display any number they want, including a real government office’s published line. Seeing “Social Security Administration” or a familiar area code on your screen is not proof the call is legitimate. The only reliable way to verify you’re actually talking to SSA is to hang up and call the agency yourself, using the national number you look up independently — never a number the caller gives you, and never by pressing a callback option they offer. ## What To Do If You Get a Suspicious Call If a call feels off — urgency, threats, requests for payment or personal information — the response is the same regardless of what story they’re using: **Hang up. Don’t engage further, and don’t call back any number the caller provided.** If you want to verify anything, call SSA yourself at 1-800-772-1213, a number you look up independently. **Never pay with gift cards, wire transfers, payment apps, or cryptocurrency.** No legitimate government agency accepts payment this way — it’s one of the clearest scam signals that exists. **Don’t give out your Social Security number, banking details, or my Social Security login over an inbound call**, no matter how official it sounds. **Report it.** File a report with the Social Security Administration’s Office of the Inspector General at OIG.SSA.gov or by calling the fraud hotline at 1-800-269-0271. You can also report it to the Federal Trade Commission at reportfraud.ftc.gov. ## Common Issues to Watch Out For I hear from readers on this topic often, and a handful of mix-ups come up repeatedly. **Assuming a real SSA letter is a scam because it sounds alarming.** Genuine notices — like [overpayment recovery letters](https://savingtoinvest.com/social-security-overpayment-clawback/) — use dense, formal language that can feel scary. If you’re unsure whether something is real, verify it through your official my Social Security account rather than assuming either way from tone alone. **Trusting a callback number the scammer provides “just to double-check.”** That number routes right back to the scammer. Always look up SSA’s number independently. **Believing a “transfer” is possible because the second caller sounds convincing.** Confidence and specific-sounding details aren’t proof — scammers research public information and rehearse scripts. **Not reporting a near-miss because no money changed hands.** Reporting scam attempts, even ones you didn’t fall for, helps SSA’s Office of Inspector General track and warn about new tactics faster. **Confusing a scam call with a real notice about a Direct Express card change.** SSA and Direct Express have made legitimate account changes in 2026 that involve real letters and account transitions — scammers exploit that same news cycle with fake versions. When in doubt, verify any account change directly through official channels rather than a link or number in the message itself. ## Looking Ahead: What I’m Watching For Scam tactics keep evolving alongside whatever’s in the news — COLA announcements, agency system changes, benefit payment updates. I expect that pattern to continue, with scammers timing new scripts to real SSA headlines as they break. AI-generated voice tools are also making these calls sound more polished and less obviously scripted than a few years ago, which raises the bar for spotting one by tone alone. The core defense doesn’t change though: SSA doesn’t threaten you, doesn’t demand gift cards, and doesn’t transfer calls between companies. I’ll keep this page updated as new tactics surface. For related reading, see how [SSA’s overpayment withholding rules work](https://savingtoinvest.com/social-security-overpayment-clawback/) if you get a real notice, what’s changing with [Direct Express card accounts](https://savingtoinvest.com/direct-express-card-fifth-third-transition-2026/), how [Social Security survivor benefits](https://savingtoinvest.com/social-security-survivor-benefits/) work if you’re managing a family member’s account, current [SSI payment amounts](https://savingtoinvest.com/ssi-maximum-payment-amounts/), and how to [spot a fake IRS letter or call](https://savingtoinvest.com/should-i-be-worried-if-i-get-an-irs-notice-or-letter-will-it-affect-my-tax-return-processing-or-refund-payment/) using many of these same warning signs. Frequently Asked Questions QWhat is the Social Security 'fake call transfer' scam? AIt's a scam where someone posing as a retailer, tech support company, or other agency claims to 'transfer' your call directly to Social Security. No legitimate business or agency can actually do this - the 'transfer' is just the same scammer switching personas, now posing as an SSA representative who claims your identity has been stolen. QCan Social Security really tell if my caller ID shows their number? ANo - you can't trust caller ID either way. Scammers use spoofing technology to display any number they choose, including SSA's real published number. The only reliable way to verify a call is to hang up and call SSA yourself at a number you look up independently. QDoes the Social Security Administration ever call and ask for payment? ANo. SSA does not call demanding immediate payment, and never accepts payment via gift cards, wire transfers, payment apps, or cryptocurrency. Legitimate account issues are communicated by mail, not surprise phone calls. QIs there really such a thing as paying for a 'new Social Security number'? ANot through a phone call demanding payment. If you have a documented case of SSN misuse, SSA has a formal process for that - it never involves paying a caller over the phone to 'fix' your number. QWhat should I do if I already gave information to one of these callers? AContact SSA directly at 1-800-772-1213 to flag your account, monitor your credit and bank accounts closely, and consider placing a fraud alert or credit freeze with the major credit bureaus. Report the incident to the SSA Office of Inspector General at OIG.SSA.gov or 1-800-269-0271. QWhere do I report a Social Security scam call? AReport it to the SSA Office of the Inspector General at OIG.SSA.gov or by calling 1-800-269-0271, and separately to the FTC at reportfraud.ftc.gov. Reporting attempted scams, even ones you didn't fall for, helps track new tactics. QAre fake COLA adjustment calls related to real cost-of-living increases? AOnly in timing. Scammers piggyback on real COLA news to make fake calls or texts feel current, claiming you need to 'confirm' information to receive your updated benefit. Actual COLA increases are applied automatically to your benefit - you never need to call anyone or click a link to get one. **Categories:** Taxes and Retirement --- ### [2026-2027 Stimulus Check Updates: No New Federal Payment — State Programs and What's Being Proposed](https://savingtoinvest.com/direct-cash-payments-to-americans-in-stimulus-package/) **Published:** July 23, 2020 **Author:** Andy **Content:** ### Key Takeaways - There is no federally authorized stimulus check in 2026 - no fourth payment has been approved by Congress. - The IRS wrapped up its auto-payments of up to $1,400 for people who missed the 2021 Recovery Rebate Credit. That window closed January 1, 2026. - The tariff dividend proposal lost its funding mechanism when Section 122 tariffs expired July 24, 2026 without renewal; a new House bill (the American Consumer Tariff Rebate Act) would need to pass to revive it. - Several states are sending rebate or relief payments in 2026, including New Jersey (ANCHOR payments begin September 15), New York, Oregon, Pennsylvania, Colorado, Georgia, and Alaska. - Viral claims of a '$1,702' or '$1,390' stimulus check are not real federal programs - $1,702 was Alaska's 2024 PFD, and $1,390 is fabricated misinformation. - If you think you missed a prior stimulus payment, the window to claim the 2021 Recovery Rebate Credit on an amended return has also closed. No new federal stimulus check has been authorized for 2026. The last round of federal Economic Impact Payments went out in 2021, and a fourth check would require Congress to pass new legislation — which has not happened. That said, there are real payments going out to Americans in 2026, mostly at the state level. And there’s at least one federal proposal worth watching. Here’s the full picture. [Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates. Covered in this Article: [Toggle](#) - [The Bottom Line on Federal Stimulus in 2026](#The_Bottom_Line_on_Federal_Stimulus_in_2026) - [The Tariff Dividend Proposal: What It Is and Where It Stands](#The_Tariff_Dividend_Proposal_What_It_Is_and_Where_It_Stands) - [What States Are Sending Payments in 2026](#What_States_Are_Sending_Payments_in_2026) - [The $1,776 Warrior Dividend — Military Only](#The_1776_Warrior_Dividend_%E2%80%94_Military_Only) - [Real-World Examples](#Real-World_Examples) - [How to Check What You Might Qualify For](#How_to_Check_What_You_Might_Qualify_For) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## The Bottom Line on Federal Stimulus in 2026 Congress has not authorized any new Economic Impact Payment for 2026. The three federal stimulus checks were: PaymentYearAmount Per Adult1st check (CARES Act)2020Up to $1,2002nd check (Consolidated Appropriations Act)2020/2021Up to $6003rd check (American Rescue Plan)2021Up to $1,400 The IRS considers those programs closed. If you missed claiming the third check, the IRS ran a special auto-payment program in late 2024 and early 2025 — issuing up to $1,400 to approximately 1 million people who qualified for the 2021 Recovery Rebate Credit but hadn’t claimed it. That program is now finished. The deadline to file a 2021 return and claim that credit passed in April 2025. ## The Tariff Dividend Proposal: What It Is and Where It Stands President Trump has floated the idea of a “tariff dividend” — a one-time payment to Americans funded by tariff revenue, with figures of around $2,000 per household mentioned publicly. I get a lot of reader questions about this, so I want to be direct: as of September 2026, it still has not been enacted, and its funding case got weaker over the summer. The tariff revenue problem got more concrete. The Section 122 tariffs originally tied to the dividend proposal expired on July 24, 2026 without being renewed by Congress, shrinking the pool of revenue the payment was supposed to draw from even further. That’s on top of the U.S. Supreme Court striking down significant portions of the broader Trump tariff framework as illegal back in February 2026. There’s a specific bill to watch, though it’s early. Rep. Henry Cuellar (D-TX) introduced the American Consumer Tariff Rebate Act of 2026, which would authorize rebates of up to $2,040 per household if Congress passes it. It hasn’t moved beyond introduction, and there’s no companion Senate action or White House endorsement yet — but it’s the closest thing to an actual bill number behind the “tariff dividend” idea right now, versus a proposal floated only in speeches. The math still doesn’t work cleanly at scale, either. Sending roughly $2,000 to every American household would cost hundreds of billions of dollars — more than current tariff revenue, even before the Section 122 expiration, could support. It could still happen if Congress acts and tariff structures are revised or renewed. But right now, the tariff dividend is a proposal without a funding source, not a payment. I’ll update this page if that changes — subscribe here to get notified. ## What States Are Sending Payments in 2026 Several states have authorized rebates, property tax relief, or direct payments for 2026. These aren’t technically “stimulus checks” in the federal sense, but they put real money in residents’ pockets. Here’s the rundown: StateProgramAmountNew JerseyStayNJ property tax relief + ANCHORUp to $6,500 / up to $1,750New YorkEmpire State Child CreditUp to $1,000/child (under 4)OregonKicker tax rebate$1.4B returned to taxpayersPennsylvaniaProperty Tax/Rent RebateUp to $1,000ColoradoPTC Rebate (property/rent/heat)Up to $1,154/yearCaliforniaClimate CreditCredit on electric/gas bills New Jersey (NJ): The StayNJ benefit provides up to $6,500 in total property tax relief for qualifying homeowners. First quarterly payments started going out in February 2026. The separate ANCHOR program offers up to $1,750 for eligible homeowners and renters, with this year’s ANCHOR payments beginning September 15, 2026. New York (NY): Families can receive up to $1,000 per child under age 4 and $500 for older qualifying children through the expanded Empire State Child Credit. New York’s STAR property tax program also continues distributing approximately $2.3 billion in relief annually. Oregon: Under Oregon law, when state tax collections exceed forecasts by more than 2%, the surplus is returned to taxpayers. For the 2026 tax season, more than $1.4 billion is being returned through refundable credits on state tax returns. Pennsylvania (PA): Pennsylvania expanded its Property Tax/Rent Rebate Program in 2026, raising the maximum rebate to $1,000 and increasing income eligibility to $48,110. Colorado (CO): The Property Tax, Rent, and Heat (PTC) Rebate program provides up to $1,154 per year to low-income residents to offset housing and heating costs. Other states with payment programs in 2026 include Idaho, Maine, Massachusetts, New Mexico, Rhode Island, South Carolina, and Virginia. Three more state and territory programs are worth calling out by name, since they get misattributed online more than most. Georgia (GA) isn’t sending a check, but it did cut its flat income tax rate from 5.19% to 4.99% for 2026, retroactive to January 1 — Governor Brian Kemp signed the bill (HB 463) on May 11, 2026. It’s not a one-time payment; it’s a permanent reduction in what Georgia residents owe each year, with the rate set to drop further toward 3.99% over time if state revenue targets are met. Colorado’s separate TABOR Cash Back program — distinct from the PTC Rebate mentioned above — sends a flat refund to every taxpayer when state revenue exceeds its constitutional cap. For 2026, that refund is forecast at a modest $41 for single filers and $82 for joint filers, well down from prior years when revenue surpluses were larger. Alaska (AK) pays its Permanent Fund Dividend (PFD) to residents every year, funded by the state’s oil-revenue investment fund — not a stimulus program, but real money that regularly gets mistaken for one online. The 2026 PFD is $1,000, plus a separate $200 energy relief payment, for $1,200 total. That’s down from the $1,702 PFD Alaska paid out in 2024, a figure that keeps resurfacing in stimulus-check misinformation (more on that below). ## The $1,776 Warrior Dividend — Military Only This one is specifically for active-duty military and reservists. The $1,776 “Warrior Dividend” is a one-time, tax-free payment to service members. It is not available to the general public — but if you or someone in your household is on active duty, it’s worth confirming eligibility. ## Real-World Examples Example 1 — Missing the federal window: James is a single filer who never received his third stimulus check in 2021. He heard about the IRS auto-payments and assumed he’d get one automatically. Unfortunately, the IRS’s auto-payment program only covered people who had already filed a 2021 return. James never filed for 2021 (he had no income that year and thought he didn’t have to). The deadline to file a 2021 return and claim the credit passed in April 2025. James is not eligible for any retroactive payment. Example 2 — State rebate catch: Maria lives in Pennsylvania and rents her apartment on $34,000 a year. She qualifies for Pennsylvania’s expanded Property Tax/Rent Rebate Program (the income threshold was raised to $48,110 in 2026). She files a separate PA-1000 form and receives a $950 rebate check — a program she didn’t know existed before a family member mentioned it. ## How to Check What You Might Qualify For If you’re looking for money you’re owed, these are the places to check: - Federal — prior stimulus: Visit [IRS.gov Economic Impact Payments](https://www.irs.gov/coronavirus/economic-impact-payments) to confirm your prior payment status. The window to claim unclaimed amounts is now closed. - Federal — tax refund: If you’re owed a refund from 2025 taxes, [check your refund status on IRS.gov](https://www.irs.gov/refunds) - State payments: Check your state’s department of revenue or taxation website — programs vary significantly and change each year - SNAP and other benefits: For ongoing assistance programs like food stamps and Medicaid, those have not been cut under current law, though benefit levels and eligibility rules continue to be negotiated in Congress See our guide to [average IRS tax refund processing times](https://savingtoinvest.com/average-irs-and-state-tax-refund-and-processing-times/) if you’re waiting on a 2025 refund. ## Common Issues to Watch Out For Scams using “stimulus check” language are surging in 2026. Because so many people are searching for stimulus payments, scammers have gotten aggressive — texts, emails, and social media posts claiming you’re owed money and just need to provide your bank account or Social Security number. The IRS never initiates contact by text or social media to request personal information. If something looks off, go directly to IRS.gov and ignore the contact. State programs require you to apply — they don’t auto-deposit. Most state rebate programs, including Pennsylvania’s and Colorado’s, require you to file a separate application. The money won’t show up automatically. Check your state’s revenue department website for filing instructions and deadlines. The tariff dividend still isn’t real, and its funding case just got weaker. I’ve had readers ask me what form to fill out to get their $2,000 tariff dividend. There’s no form because there’s no program — it’s a proposal, and the Section 122 tariffs originally meant to fund it expired in July 2026 without renewal. Don’t take action based on social media posts claiming otherwise. The “$1,702” and “$1,390” figures circulating online are not new federal stimulus checks. $1,702 was Alaska’s actual 2024 Permanent Fund Dividend — a real payment, but limited to Alaska residents and not this year’s amount. $1,390 appears to be manufactured misinformation: it’s suspiciously close to the real $1,400 third stimulus payment from 2021, which makes it read as plausible to people scrolling past a headline. Neither figure reflects an actual IRS program in 2026. Not all “government payments” in 2026 are stimulus checks. Tax refunds, Earned Income Tax Credit payments, Child Tax Credit refunds, and SNAP benefits are real programs — but they’re not stimulus checks. They require filing a tax return or completing an eligibility process. Make sure you’re applying for the right thing. Frequently Asked Questions QIs there a new stimulus check in 2026? ANo. No new federal stimulus check has been authorized by Congress for 2026. The three Economic Impact Payments - issued in 2020 and 2021 under pandemic relief legislation - are the only federal direct payments of this type. A fourth check would require new legislation, which has not been passed. QWhat happened to the $1,400 IRS auto-payments for missed stimulus? AThe IRS issued automatic payments of up to $1,400 to approximately 1 million people who had filed 2021 tax returns but hadn't claimed the Recovery Rebate Credit. Those payments went out between December 2024 and January 2025. The program is now closed, and the deadline to file a 2021 return to claim the credit passed in April 2025. QIs the $2,000 tariff dividend real? AAs of September 2026, no. President Trump proposed a tariff dividend funded by import tariff revenue, but it has not been enacted into law. The Supreme Court struck down portions of the Trump tariff framework in February 2026, and the Section 122 tariffs originally tied to the dividend idea expired on July 24, 2026 without renewal, further reducing the revenue base. A House bill, the American Consumer Tariff Rebate Act of 2026, would authorize rebates up to $2,040 per household if passed, but it hasn't moved beyond introduction. QWhich states are sending stimulus or rebate payments in 2026? ASeveral states have active rebate or relief programs in 2026. New Jersey's StayNJ program offers up to $6,500 in property tax relief, and its separate ANCHOR program (up to $1,750) begins paying out September 15, 2026. Oregon is returning over $1.4 billion to taxpayers through its Kicker credit. Pennsylvania expanded its Property Tax/Rent Rebate to up to $1,000. Georgia cut its flat income tax rate to 4.99%. Colorado's TABOR Cash Back is forecast at $41 (single) or $82 (joint) for 2026. Alaska pays a $1,000 PFD plus $200 energy relief. New York, California, and others have smaller programs. Eligibility and amounts vary - check your state's department of revenue website. QAre the viral '$1,702' or '$1,390' stimulus check claims real? ANo. $1,702 was Alaska's actual 2024 Permanent Fund Dividend - a real payment, but limited to Alaska residents and not the current 2026 amount (which is $1,000 plus $200 in energy relief). $1,390 is not tied to any real program; it's misinformation designed to look plausible because it's close to the real $1,400 stimulus payment from 2021. Neither figure reflects a 2026 federal payment. QHow do I know if I missed a prior federal stimulus check? AGo to IRS.gov and use the 'Get My Payment' tool, or check your IRS online account to view your Economic Impact Payment history. However, the window to claim any missed amounts through an amended 2021 return has now passed (April 2025 deadline). If you've received all three payments you were eligible for, there's nothing further to claim federally. QAre there any other federal payment programs I should know about in 2026? AThe Child Tax Credit ($2,200 per child in 2026), the Earned Income Tax Credit, and the Child and Dependent Care Credit are all active for 2026 - but they require filing a federal tax return. Military personnel may be eligible for the $1,776 Warrior Dividend. SNAP (food stamps) and Medicaid remain active programs. None of these are stimulus checks in the traditional sense, but they represent significant government support for eligible households. **Categories:** Taxes and Retirement **Tags:** checks, Coronavirus, fiscal, payment, stimulus, tax --- ### [Which State Taxes Actually Matter? Income, Property, Sales, and Estate Tax Compared for 2026-2027](https://savingtoinvest.com/which-state-taxes-matter-to-you/) **Published:** August 25, 2026 **Author:** Andy **Content:** ### Key Takeaways - Nine states charge no personal income tax in 2026 - Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming - but that doesn't mean they're cheap overall. - New Jersey has the highest effective property tax rate in the country (2.11%), while Hawaii has the lowest (0.27%) - on a $400,000 home, that's roughly $8,440 a year in NJ versus $1,080 in Hawaii. - Louisiana, Tennessee, Washington, Arkansas, and Alabama have the highest combined state and local sales tax rates (all above 9.4%); Delaware, Montana, New Hampshire, and Oregon charge none at all. - Twelve states plus D.C. levy their own estate tax and five states levy an inheritance tax (Maryland has both) - separate from, and often with a much lower exemption than, the federal estate tax. - Only eight states still tax Social Security benefits in 2026 (Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, and Vermont), and most exempt lower- and middle-income retirees through income thresholds anyway. - Washington voters decide in November 2026 whether to repeal the state's new 9.9% tax on income over $1 million before it even takes effect in 2028. Where you live changes what you owe in ways that have nothing to do with your federal return. Nine states charge no personal income tax at all in 2026, but the same nine states often make up the difference through property tax, sales tax, or both. There’s no single “best” state for taxes — there’s only the state that’s best for your specific situation. A high-income earner, a homeowner, a retiree living on Social Security, and someone with a taxable estate can each get a completely different answer from the same list of states. Here’s how the five taxes that matter most — income, property, sales, estate, and capital gains — actually break down across the country in 2026, plus which ones are worth paying attention to based on your own situation. Covered in this Article: [Toggle](#) - [State Income Tax: The Biggest Lever for High Earners](#State_Income_Tax_The_Biggest_Lever_for_High_Earners) - [Property Tax: What You’ll Actually Pay Every Year](#Property_Tax_What_Youll_Actually_Pay_Every_Year) - [Sales Tax: The One With No Withholding, and No Escape](#Sales_Tax_The_One_With_No_Withholding_and_No_Escape) - [Estate and Inheritance Tax: The Tax Most People Never See](#Estate_and_Inheritance_Tax_The_Tax_Most_People_Never_See) - [Capital Gains Tax by State: Investors Pay Twice](#Capital_Gains_Tax_by_State_Investors_Pay_Twice) - [Does Your State Tax Social Security?](#Does_Your_State_Tax_Social_Security) - [Two Examples: How This Actually Plays Out](#Two_Examples_How_This_Actually_Plays_Out) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027](#Looking_Ahead_2027) ## State Income Tax: The Biggest Lever for High Earners If most of your money comes from wages, a 401(k) withdrawal, or other ordinary income, state income tax is usually the single biggest state-tax line item you’ll see. The nine states with no personal income tax in 2026 are Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee (TN), Texas (TX), Washington (WA), and Wyoming. New Hampshire fully repealed its old tax on interest and dividend income starting in 2025, which is why it now joins this list alongside longtime no-income-tax states [like Texas](https://savingtoinvest.com/texas-unemployment-benefits/) [and Tennessee.](https://savingtoinvest.com/tennessee-unemployment-benefits/) At the other end, the states with the highest individual income tax collections per person are Oregon, Massachusetts, New York, California, and Minnesota, according to Tax Foundation data. California’s top marginal rate reaches 13.3% on income over $1 million — the highest in the country — which is part of why our [California vs. Florida refund comparison](https://savingtoinvest.com/california-vs-florida-where-your-tax-refund-goes-further-in-2026/) found Florida stretching a refund noticeably further for high earners. Having no state income tax doesn’t automatically mean a state is cheap — it just means that particular lever isn’t pulling on your paycheck. [Washington is the clearest example](https://savingtoinvest.com/washington-state-unemployment-benefits/), and it’s also the state to watch heading into 2027: no wage income tax, but a 7% state capital gains tax on long-term gains above $270,000 for investors and business sellers, plus a brand-new millionaire’s income tax that’s currently on hold pending a November 2026 vote (more on that in the Looking Ahead section below). Remote workers face a separate wrinkle. If you live in one state but work for an employer based in another, reciprocity agreements (or the lack of one) determine which state actually taxes your income — and some states without reciprocity can tax the same income twice before you claim a credit. I cover the mechanics in my [remote work tax issues guide](https://savingtoinvest.com/remote-work-tax-issues-to-consider-when-filing-your-return/). [Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) — I’ll update this page as states adjust their brackets, exemptions, and rebate programs throughout the year. ## Property Tax: What You’ll Actually Pay Every Year Property tax is the one that shows up every single year, whether or not your income changes, and it tends to rise alongside home values rather than inflation alone. To compare states fairly, look at the effective property tax rate — total property tax paid divided by the home’s value — rather than the raw dollar amount, since home prices vary so much by state. The figures below come from the [Tax Foundation’s 2026 state tax data](https://taxfoundation.org/data/all/state/2026-state-tax-data/). State (Highest)Effective RateState (Lowest)Effective RateNew Jersey2.11%Hawaii0.27%Illinois2.01%Alabama0.38%Connecticut1.81%Nevada0.47%New Hampshire1.66%Arizona / Colorado / South Carolina0.48% On a $400,000 home, that gap works out to roughly $8,440 a year in New Jersey versus about $1,080 in Hawaii — a difference of more than $7,000 annually for an identical house. New Jersey’s high property tax rate is a major reason the state also runs one of the country’s largest property tax relief programs; if you’re checking on a [New Jersey state tax refund](https://savingtoinvest.com/new-jersey-tax-considerations-and-checking-your-refund-status/), it’s worth knowing the state’s overall tax mix leans much more heavily on property tax than income tax. Since property tax is set locally, not by the state government, your actual bill depends heavily on the specific city or county — a home in a low-tax state can still land in a high-tax county, and vice versa. Rising home values are part of why this number keeps climbing nationally; see my [mortgage rates and home prices outlook](https://savingtoinvest.com/why-rising-rates-will-boost-rather-than-lower-home-prices-and-purchases/) for where prices are headed next. ## Sales Tax: The One With No Withholding, and No Escape Sales tax is the easiest of these five to understand — it’s right there on the receipt — but states with no income tax often lean harder on it to make up the difference. Delaware, Montana, New Hampshire, and Oregon are the only states with no statewide sales tax at all. Alaska has no state sales tax, but it’s the exception among the no-income-tax states — it allows individual localities to charge their own. The five states with the highest combined state-and-local sales tax rates are Louisiana (10.13%), Tennessee (9.61%), Washington (9.57%), Arkansas (9.48%), and Alabama (9.46%) — all comfortably above the roughly 7.5% national average. Notice that three of those five (Tennessee, Washington, and Alabama’s neighbor states) also show up on the no-income-tax list; that’s not a coincidence. Sales tax is also more regressive than income tax by design — it takes the same percentage from a lower earner’s grocery run as a higher earner’s, without the credits and deductions that soften state income tax for lower-income households. ## Estate and Inheritance Tax: The Tax Most People Never See Even if your estate falls well within [the federal estate tax exemption](https://savingtoinvest.com/federal-estate-tax-exemption-and-gift-tax-limits/) — $15 million per individual in 2026 — your state may have a much lower threshold of its own. Twelve states plus Washington, D.C. levy their own estate tax: Connecticut, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, New York, Oregon, Rhode Island, Vermont, and Washington. Some of these exemptions are dramatically lower than the federal number — Oregon’s kicks in at just $1 million, and Massachusetts’ at $2 million. Five states levy a separate inheritance tax, which taxes what the heir receives rather than the estate itself: Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania. Maryland is the only state that imposes both. If you’re settling an estate in [New York](https://savingtoinvest.com/when-can-i-expect-my-new-york-state-tax-refund/), it’s worth checking the state’s own estate tax rules separately from your federal filing, since New York’s exemption threshold and “cliff” structure catch more estates than most people expect. The remaining 33 states have neither tax, meaning only the federal exemption applies — which the vast majority of American households will never come close to. ## Capital Gains Tax by State: Investors Pay Twice Long-term capital gains face federal tax at 0%, 15%, or 20% depending on income, plus a 3.8% net investment income tax for higher earners. Most states then add their own layer on top, taxed as ordinary income in most cases. California has the highest effective state capital gains rate in the country at 13.3%, followed by New York (10.9%), New Jersey (10.75%), and Oregon (9.9%). If you’re weighing where investment gains actually stretch further, my [capital gains tax rates guide](https://savingtoinvest.com/capital-gains-tax-short-and-long-term-rates-plus-other-factors-to-consider/) breaks down the full federal short-term versus long-term math before you even get to the state layer. Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming charge no additional state capital gains tax — with one asterisk. Washington’s 7% capital gains excise tax applies only above roughly $270,000 in long-term gains for 2026, so it mostly affects business owners and investors selling significant, concentrated positions rather than everyday retirement account withdrawals. ## Does Your State Tax Social Security? Whether your Social Security benefit is federally taxable depends on your combined income — [your AGI or MAGI](https://savingtoinvest.com/agi-vs-magi-explained/) plus half your benefit and any tax-exempt interest. At the state level, only eight states still tax Social Security benefits in 2026: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, and Vermont. West Virginia finished phasing out its tax on Social Security this year and now fully exempts it, following the national trend of states dropping this tax. Most of these eight states use income thresholds that exempt lower- and middle-income retirees anyway — Connecticut exempts single filers under $75,000 AGI ($100,000 joint), and Minnesota’s threshold sits around $86,000 for individuals. The [IRS’s Interactive Tax Assistant](https://www.irs.gov/help/ita) can help you check whether your Social Security is federally taxable in the first place, before you even get to the state layer. If you’re mapping out when to start benefits in the first place, my [retirement ages guide](https://savingtoinvest.com/retirement-ages-and-eligilbility-rules-for-receiving-401k-ira-and-social-security-beneifts/) covers the 401(k), IRA, and Social Security milestones that determine your options. ## Two Examples: How This Actually Plays Out Diane, a 68-year-old retiree in Vermont, draws $32,000 a year in Social Security plus $18,000 from a traditional IRA. Her combined income puts her above Vermont’s exemption threshold, so a portion of her Social Security is taxed at both the federal and state level — something that wouldn’t happen at all if she lived in a state like Florida or one of the other 41 states that leave Social Security alone. She’s also weighing [Roth versus traditional IRA](https://savingtoinvest.com/traditional-ira-versus-roth-ira-contribution-and-phase-out-income-limits/) withdrawals for the rest of her retirement, since Roth distributions wouldn’t add to that combined-income calculation at all. Priya, a remote software engineer earning $240,000, is deciding between staying in California and relocating to Washington. California’s income tax would cost her roughly $20,000+ a year at her bracket; Washington charges no wage income tax at all. But Priya also holds concentrated stock from an earlier startup, and if she sells more than $270,000 in long-term gains in a single year after moving, Washington’s 7% capital gains tax kicks in on the excess — meaning the “no income tax” state isn’t entirely tax-free for her specific situation. ## Common Issues to Watch Out For I get versions of “just tell me the best state” a lot, so a few things worth flagging before you draw conclusions from any state-tax list: Don’t stop at income tax. A state with no income tax that also has high property and sales tax can cost a middle-income household more overall than a state with moderate income tax and cheap housing — Texas and New Hampshire are both real examples of this trade-off. Property tax is set locally, not statewide. The effective rates above are state averages; your specific city or county can run well above or below that number. Residency rules are stricter than people assume. Simply owning a vacation home in a no-tax state doesn’t make you a resident there — states like California and New York are aggressive about auditing high earners who claim they moved, and day-count rules (sometimes just one day of work) can trigger nonresident filing obligations elsewhere. State tax law changes more often than federal law. New Hampshire’s dividend tax repeal and West Virginia’s Social Security phase-out both happened within the last two years — don’t assume a state’s tax profile from five years ago still applies. A no-income-tax state doesn’t mean a tax-free retirement. Property tax, sales tax on everyday purchases, and (in select states) estate tax can all still apply even where wages and retirement withdrawals aren’t taxed. ## Looking Ahead: 2027 The biggest state income tax story to watch is actually in a state with no income tax — for now. The Washington legislature passed a new 9.9% tax on household income above $1 million, currently scheduled to take effect January 1, 2028. A signature-qualified repeal effort, Initiative 645, will go before Washington voters on the November 3, 2026 ballot; if it passes, the millionaire’s tax is repealed before it ever collects a dollar, and the state’s existing 7% capital gains excise tax (a separate law) stays in place either way. If I-645 fails, Washington would join the list of states taxing at least some income starting in 2028, which would be worth revisiting in this post’s income tax section. A few other state-tax stories are worth watching heading into 2027. Florida voters decide on a ballot measure in November 2026 to raise the state’s homestead exemption further, which would lower property tax bills for many homeowners starting in 2027 if it passes. Georgia has been cutting its flat income tax rate incrementally each year, and further reductions are plausible if state revenue holds up. More states have been trending toward dropping Social Security taxation entirely — West Virginia just finished its phase-out, and it wouldn’t be surprising to see one or two of the remaining eight states propose similar legislation. I’ll update this page as specific state legislative sessions wrap up and any changes take effect. Frequently Asked Questions QWhich states have no income tax at all in 2026? AAlaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. New Hampshire joined this group after fully repealing its tax on interest and dividend income starting in 2025. QWhat state has the highest property tax rate? ANew Jersey, with an effective rate of 2.11% - on a $400,000 home, that's roughly $8,440 a year. Hawaii has the lowest at 0.27%, or about $1,080 a year on the same home value. QWhich states tax Social Security benefits? AEight states in 2026: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, and Vermont. Most use income thresholds that exempt lower- and middle-income retirees, so many people in these states still owe nothing. QDo all states have an estate tax? ANo. Only 12 states plus Washington, D.C. have their own estate tax, and 5 states have a separate inheritance tax (Maryland has both). The other 33 states rely only on the federal estate tax, which most households never reach. QIs it true that Washington State has no income tax but still taxes capital gains? AYes, for now. Washington has no tax on wages, and it charges a 7% excise tax on long-term capital gains above roughly $270,000 in a calendar year for 2026 - mainly affecting investors and business owners with large gains. Separately, the legislature also passed a 9.9% tax on income above $1 million starting in 2028, but Washington voters will decide whether to repeal that law on the November 2026 ballot before it ever takes effect. QWhich states have the highest combined sales tax? ALouisiana (10.13%), Tennessee (9.61%), Washington (9.57%), Arkansas (9.48%), and Alabama (9.46%) have the highest combined state and local sales tax rates in 2026. Delaware, Montana, New Hampshire, and Oregon charge no statewide sales tax at all. QIs there one state that's cheapest overall for taxes? ANot really - it depends entirely on your situation. A high-income earner, a homeowner, a retiree on Social Security, and someone with a large estate can each get a different 'best' answer from the same list of states, since each tax type hits a different kind of household. **Categories:** Taxes and Retirement --- ### [When Will We Hit the Debt Ceiling Again? My 2026–2027 Timeline After the $41.1 Trillion Increase](https://savingtoinvest.com/will-the-debt-ceiling-be-raised-and-whose-to-blame-for-this-mess-republicans-or-democrats/) **Published:** July 17, 2021 **Author:** Andy **Content:** ### Key Takeaways - The debt ceiling was raised by $5 trillion in July 2025 (OBBBA), from $36.1 trillion to $41.1 trillion - the largest single increase in U.S. history. - As of September 8, 2026, national debt stands at $40.13 trillion, leaving roughly $970 billion of remaining borrowing room. - Congress passed a continuing resolution funding the government only through December 11, 2026 - the same window when Treasury's own cash-flow math starts getting tight. - News coverage in early September pegs December 2026 as the point debt could reach the $41.1 trillion cap, sooner than the Bipartisan Policy Center's own late-winter-to-mid-summer 2027 range. - Once the limit is reached, Treasury's extraordinary measures typically buy another 6-9 months before a true default risk ('X-date') emerges. The debt ceiling currently sits at $41.1 trillion, and as of September 8, 2026 we’ve already borrowed $40.13 trillion of it. That leaves roughly $970 billion of headroom — and the political calendar just made the timing a lot more pointed. I wrote the original version of this article back in 2021, during one of the more chaotic debt ceiling standoffs in recent memory. A lot has changed since then, including who actually raised the ceiling most recently and by how much. Here’s the current picture, plus my best estimate of when we’ll be back here again. Covered in this Article: [Toggle](#) - [Who Actually Raised the Debt Ceiling This Time](#Who_Actually_Raised_the_Debt_Ceiling_This_Time) - [What the Debt Ceiling Actually Does](#What_the_Debt_Ceiling_Actually_Does) - [Looking Ahead: 2026–2027 Outlook](#Looking_Ahead_2026%E2%80%932027_Outlook) - [Who’s Actually Affected When This Gets Close](#Whos_Actually_Affected_When_This_Gets_Close) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## Who Actually Raised the Debt Ceiling This Time In July 2025, Congress raised the debt ceiling by $5 trillion — from $36.1 trillion to $41.1 trillion — as part of the One Big Beautiful Bill Act (OBBBA), the sweeping tax and spending law I’ve covered in detail elsewhere on this site. This is worth pausing on, because it’s a genuine role reversal from the fight I described in my 2021 update. The Senate passed OBBBA 51-50 on July 1, 2025, with Vice President JD Vance casting the tiebreaking vote. The House followed on July 3, 2025, passing it 218-214. Both votes were almost entirely along party lines, with Republicans in control of the House, Senate, and White House pushing the increase through via the budget reconciliation process — which only requires a simple majority, not the 60 votes a normal bill needs in the Senate. President Trump signed OBBBA into law on July 4, 2025. It’s described as the single largest debt ceiling increase in U.S. history in dollar terms. So if you’re looking for a clean “which party raised it” answer: this round was Republicans, using the same reconciliation tool Democrats used for prior increases when they held the trifecta. My take from the original 2021 article still holds up — both parties have raised the debt ceiling repeatedly over the decades, usually when they control Washington, and the finger-pointing rarely survives contact with who’s actually holding the gavel at the time. ## What the Debt Ceiling Actually Does The debt ceiling is a cap Congress sets on how much the Treasury can legally borrow. It doesn’t authorize new spending — Congress already approved that spending separately, through the normal budget and appropriations process. Raising the ceiling just lets the Treasury borrow the money to pay bills the government has already committed to: Social Security, Medicare, military salaries, interest on existing debt, tax refunds, and everything else Congress has funded. Think of it like a credit card balance you’re required to pay off — the ceiling controls whether you’re allowed to keep making the minimum payments, not whether you’re allowed to keep shopping. If the ceiling isn’t raised in time and Treasury exhausts its “extraordinary measures” (accounting maneuvers that free up limited breathing room), the government risks missing payments on obligations it’s already legally required to make. That’s the scenario everyone calls a potential default. ## Looking Ahead: 2026–2027 Outlook This is the part readers ask me about most: when do we actually hit the $41.1 trillion ceiling, and what happens next? The math, updated. National debt crossed $40 trillion on August 19, 2026 and stood at [$40.13 trillion as of September 8, 2026](https://fiscaldata.treasury.gov/americas-finance-guide/national-debt/) — a noticeably slower pace of growth over those three weeks than the run-up earlier in the summer, when debt was climbing roughly $7.7-8 billion a day. At the recent, slower pace, the remaining $970 billion of headroom under the $41.1 trillion cap still leaves several months of room. But the calendar just added a second, sharper pressure point. The calendar collision. On September 2, 2026, President Trump signed a continuing resolution funding the federal government only through December 11, 2026 — avoiding a shutdown before the midterms, but setting up a hard deadline right around when Treasury’s own cash management gets tight. News coverage in the first week of September pegged the debt ceiling itself as reachable by December 2026, notably sooner than the [Bipartisan Policy Center](https://bipartisanpolicy.org/hub/debt-limit-analysis/)‘s (BPC) own official range. The professional estimate. The Bipartisan Policy Center, which has tracked debt ceiling timing since 2011 using Treasury cash-flow data, projects the statutory limit is most likely to be reached sometime between late winter and mid-summer of 2027 — though the December 2026 chatter shows how much that range can shift as new spending and receipt data comes in. A more pessimistic House Budget Committee estimate has pointed to a limit as early as November 2026. Why the range is wide. A few live variables could push the date earlier or later: higher-than-expected military spending, ongoing litigation over the administration’s tariff policy (tariff revenue has become a meaningful, if unpredictable, source of federal income), and how tax receipts come in relative to CBO’s projections. The administration has also floated asking congressional Republicans to extend the debt ceiling itself as part of a separate reconciliation package before the midterms — which, if it happens, would reset this whole timeline. What happens once we hit it. Reaching the statutory ceiling doesn’t mean default the next day. Treasury’s extraordinary measures plus existing cash reserves typically buy another six to nine months before the real “X-date” — the point where the government genuinely can’t meet all its obligations. Given the December 11 funding deadline is now sitting right on top of the debt ceiling conversation, expect both stories — a possible shutdown and a possible debt limit breach — to get covered together in the news this winter, even though they’re legally separate mechanisms (more on that distinction below). I’ll be updating this section as we get closer — the range narrows considerably once we’re inside the final few months. ## Who’s Actually Affected When This Gets Close The mechanics matter less to most readers than the practical question: does my check still show up? Linda, a retired federal employee living on Social Security and a small pension, went through the 2023 near-miss and remembers the anxiety even though payments were never actually interrupted. If Treasury genuinely runs out of borrowing capacity and cash on hand, Social Security, SSI, and Medicare payments are among the obligations at risk of delay — not because Congress decided to cut them, but because Treasury may not have the cash to send every payment on time. Dave, who runs a small business that holds a federal contract, worries about a different angle: government contractors and vendors are often among the first payments delayed during a genuine cash crunch, since Treasury has to prioritize interest payments and a handful of other obligations to avoid an actual bond default. Priya, who parks her emergency fund in a Treasury-backed high-yield savings account and holds some I-bonds and T-bills for the rate, worries about a different angle entirely: is her money actually safe if this drags out? Treasury has always prioritized interest and principal payments on outstanding debt in every past standoff, using extraordinary measures specifically to protect bondholders even as other obligations got delayed. That track record isn’t a legal guarantee, though — nothing requires Treasury to keep paying bondholders ahead of, say, Social Security if cash genuinely runs out — so a real breach past the X-date would be uncharted territory for everyone, savers included. Congress has always acted before that point so far, which is why panic-selling Treasuries purely on debt-ceiling headlines has been a losing move in every past cycle. In every standoff so far, the last-minute deal has come before real payments were missed. That’s not a guarantee it always will, but it’s the actual track record. ## Common Issues to Watch Out For A few things I see people get wrong about this topic every time it comes back around. Raising the debt ceiling isn’t a spending increase. It’s authorizing payment for spending Congress already approved. Confusing the two is probably the single most common misunderstanding in every debt ceiling news cycle. A missed X-date and a government shutdown are two different things. A shutdown happens when Congress fails to pass annual appropriations bills, and it stops “non-essential” government functions. A debt ceiling breach is about Treasury’s ability to borrow to pay for what’s already been approved. They can happen independently or overlap — and with the current CR expiring December 11, 2026, right around when the debt ceiling could bind, both storylines may well be in the news at the same time this winter. “Who’s to blame” usually depends on who’s in power. As this article’s own history shows, both parties have voted to raise the ceiling repeatedly when they controlled Congress and the presidency, and both have used it as political leverage when they didn’t. I’d treat any single-party blame narrative with some skepticism. The debt ceiling has been raised or suspended around 100 times since World War II. This isn’t a new or rare event — it’s a recurring feature of how U.S. borrowing law works, even though each round generates fresh headlines. Related reading: [2026–2027 One Big Beautiful Bill Act (OBBBA): What Every Tax Filer Needs to Know](https://savingtoinvest.com/one-big-beautiful-bill-act-obbba/) [2026 Federal IRS Tax Brackets, Tax Rates, and Standard Deduction — With 2027 Projections](https://savingtoinvest.com/current-federal-tax-brackets/) [2026-2027 IRS Tax Refund Schedule And Direct Deposit Payment Calendar](https://savingtoinvest.com/tax-refund-schedule/) [2026 Social Security COLA Confirmed at 2.8%, Plus the Latest 2027 Estimate](https://savingtoinvest.com/social-security-tax-and-cost-of-living-adjustment-cola/) Frequently Asked Questions QWhat is the current debt ceiling in 2026? AThe debt ceiling is $41.1 trillion, set by the One Big Beautiful Bill Act (OBBBA) signed into law on July 4, 2025. It raised the previous $36.1 trillion limit by $5 trillion. QWhen will the U.S. hit the debt ceiling again? AThe Bipartisan Policy Center projects the statutory limit will most likely be reached sometime between late winter and mid-summer 2027, but news coverage in early September 2026 pointed to December 2026 as a realistic earlier date - the same month a separate continuing resolution funding the government also expires. A more pessimistic House Budget Committee estimate has put it as early as November 2026. QWho raised the debt ceiling in 2025 - Republicans or Democrats? ARepublicans raised it via the One Big Beautiful Bill Act, passed through the budget reconciliation process with near-unanimous Republican support and almost no Democratic votes. The Senate passed it 51-50 with Vice President JD Vance's tiebreaking vote, and the House passed it 218-214. QDoes raising the debt ceiling increase government spending? ANo. Raising the debt ceiling authorizes the Treasury to borrow money to pay for spending Congress has already approved through the separate budget and appropriations process. It does not create new spending on its own. QWhat happens if the debt ceiling isn't raised in time? ATreasury first uses 'extraordinary measures' - accounting maneuvers - and existing cash reserves to keep paying bills, which typically buys 6-9 additional months. If that runs out before Congress acts, the government risks missing payments on obligations like Social Security, federal contractor invoices, or bond interest, a scenario known as hitting the 'X-date.' QHow much national debt does the U.S. currently have? AAs of September 8, 2026, total national debt stood at $40.13 trillion, according to Treasury's daily Debt to the Penny data. That leaves about $970 billion of headroom under the current $41.1 trillion ceiling. QIs the debt ceiling fight connected to the government shutdown deadline? AThey're legally separate, but the timing has converged. Congress passed a continuing resolution on September 2, 2026 that funds the government only through December 11, 2026 - the same general window some estimates now put the debt ceiling itself being reached. Expect both stories in the news around the same time this winter, even though a shutdown (failure to pass appropriations) and a debt ceiling breach (Treasury running out of borrowing room) are different mechanisms with different consequences. **Categories:** Economy **Tags:** debt, democrats, government, republican --- ### [Getting a Free Copy of Your IRS Tax Return Information (Form 4506-T / IRS Tax Transcript)](https://savingtoinvest.com/getting-a-free-copy-of-your-irs-tax-return-information-form-4506t-irs-tax-transcript/) **Published:** September 2, 2009 **Author:** Andy **Content:** ### Key Takeaways - All five IRS transcript types are completely free - only an actual copy of your return costs $30. - Setting up an IRS Online Account now requires ID.me or Login.gov identity verification, taking about 10-15 minutes. - Phone and mail transcript requests ship only to the address on your most recently filed return. - Code 846 on your Tax Account Transcript confirms your refund amount and the date it was issued. When closing on my home a while back, I had to request a copy of my tax return. I assumed this would be a hassle since the requesting party wanted an official transcript, not just a copy from my tax software. It turned out to be a simple, **free** process through my IRS online account, and every taxpayer can use it the same way. Beyond income verification, your tax transcript is also a great source for [checking refund processing status](https://savingtoinvest.com/using-your-irs-transcript-to-get-your-tax-return-and-refund-processing-status-and-key-dates/) and seeing what adjustments the IRS has made to your return. Covered in this Article: [Toggle](#) - [What Is a Tax Transcript?](#What_Is_a_Tax_Transcript) - [Which Transcript Should I Get?](#Which_Transcript_Should_I_Get) - [How Do I Get My Tax Transcript?](#How_Do_I_Get_My_Tax_Transcript) - [IRS Account — “A Technical Problem Has Occurred”](#IRS_Account_%E2%80%94_%E2%80%9CA_Technical_Problem_Has_Occurred%E2%80%9D) - [What if I Need Other Income Verification or Tax Documentation?](#What_if_I_Need_Other_Income_Verification_or_Tax_Documentation) - [A Transcript Isn’t the Same as an Actual Copy of Your Return](#A_Transcript_Isnt_the_Same_as_an_Actual_Copy_of_Your_Return) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027](#Looking_Ahead_2027) ## What Is a Tax Transcript? Your tax transcript is your financial and transaction record with the IRS — a reflection of the official tax information the IRS has on file for you. A **tax return transcript** shows most line items from your tax return (Form 1040 and its schedules) as it was originally filed. It doesn’t reflect changes made after filing (like amendments), and it doesn’t include attachments such as W-2s. There are 5 types of free transcripts available from the IRS: - **Tax Return Transcript** — shows most line items from your originally filed Form 1040, plus any forms and schedules attached. Available for the current tax year and the prior 3 years. Mainly used for income verification by lending institutions. - **Tax Account Transcript** — shows filing status, taxable income, payment types, and any changes the IRS made after you filed. Available for the current year and the prior 9 years online (3 prior years if you request by phone or mail). Useful for checking your current-year refund status if [WMR/IRS2Go](https://savingtoinvest.com/wmr-and-irs2go-status-differences-return-received-accepted-or-under-review-and-refund-approved-versus-refund-sent/) isn’t giving you much information. - **Record of Account Transcript** — combines the tax return and tax account transcripts into one document. Available for the current tax year and the prior 3 years. - **Wage and Income Transcript** — a listing of income statements (Forms W-2, 1098, 1099, and 5498) reported to the IRS. Available for the current year and the prior 9 years, though current-year data isn’t fully loaded until mid-February. - **Verification of Non-Filing Letter** — proof that the IRS has no record of, or hasn’t processed, a return for the tax year in question. Available after June 15 for the current year, or anytime for the prior 3 years. Your transcript is also a good way to check for fraudulent or unauthorized activity on your account. ## Which Transcript Should I Get? Most people need either the **Tax Return Transcript** or the **Tax Account Transcript**. A tax return transcript typically satisfies lending institutions (mortgages, student loans) and other government agencies verifying your income or residency. For refund status or payment delays, check your **Tax Account Transcript** instead — it shows your filing status, adjusted gross income, and taxable income. You can use the [various transcript codes](https://savingtoinvest.com/irs-tax-topic-error-codes-on-where-is-my-refund-wmr-and-irs2go/) to get insight into your refund status. Code 846 confirms your refund amount and the date it was issued, code 810 flags a refund freeze, and if you’re seeing processing delays for another reason, your transcript can show whether it’s due to an additional review ([Code 570](https://savingtoinvest.com/what-is-tax-code-tc-570-on-my-irs-transcript-and-will-it-delay-my-refund-account-freeze-or-additional-account-actions-pending/)) or a Treasury offset ([Code 203/898](https://savingtoinvest.com/irs-refund-adjustments-and-treasury-bfs-offsets-tax-topic-codes-203-598-or-898/)) reducing your refund. Since you can request a tax return transcript at any time, it’s worth downloading one once a year for your records — before tax season [starts](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) is a good habit. ## How Do I Get My Tax Transcript? All official IRS transcripts are available for free through your **IRS Online Account**. Go to the Tax Records tab and click **Get Transcript** to view, print, or download any transcript type. One thing that’s changed since I first wrote about this: setting up (or logging into) your IRS Online Account now requires identity verification through **ID.me** or **Login.gov** — the IRS accepts either. If you already have a Login.gov account from another federal service (Social Security, VA, USPS), you can reuse it here instead of creating a new ID.me profile. First-time verification takes roughly 10-15 minutes and requires a photo ID, your SSN, and a financial account number; ID.me also offers a live video-call option if you’d rather not do the self-service photo/selfie verification. Once set up, your account also shows your balance due and payment history, digital copies of certain IRS notices and letters, your prior-year adjusted gross income (handy for e-filing verification), and your Identity Protection PIN if you have one. You can also request transcripts by phone at **1-800-908-9946** (automated line), or by mail using Form 4506-T (Request for Transcript of Tax Return). Mailed requests generally take **5 to 10 days** to arrive and can only be sent to the address on your most recent return. **I’d still recommend the online method** — it’s faster, and dealing directly with your own account avoids the mistakes that can happen with a mailed request. Once your account is set up, you can access, download, and print any transcript whenever you need it. If you’re planning to buy a home or apply for a mortgage soon, get your IRS Online Account set up now so your transcripts are ready when the lender asks. You can also authorize a third party (like your bank or tax preparer) to access your transcripts directly, typically via Form 8821 or the IRS’s Tax Pro Account tool. Only do this with a credible institution or person you know. *[Subscribe here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) if you want to know when the IRS changes anything about this process.* ## IRS Account — “A Technical Problem Has Occurred” You may occasionally see a technical-error message when trying to access your account, especially during weekend maintenance windows in tax season. This isn’t related to identity verification — it’s on the IRS’s systems end, and there’s not much to do but wait for it to clear. If it’s urgent, your best bet is to [call the IRS](https://savingtoinvest.com/how-can-i-actually-speak-to-a-real-person-or-agent-at-the-irs-phone-numbers-that-work/) or visit a local Taxpayer Assistance Center. ## What if I Need Other Income Verification or Tax Documentation? If you need a copy of a W-2 or 1099, contact the payer (your employer or the issuing business) first rather than the IRS. The IRS will charge a fee for copies of any attachments or forms submitted with your original tax return, whereas your employer or payer can usually reissue these for free. ## A Transcript Isn’t the Same as an Actual Copy of Your Return Everything above is a **transcript** — a summary of your return, requested free with Form 4506-T. If you need an exact, literal copy of your filed return (the same document you or your preparer submitted), that’s a different request: [Form 4506, Request for Copy of Tax Return](https://www.irs.gov/forms-pubs/about-form-4506). That one isn’t free — it’s a **$30 fee per return** (payment has to be included with your request or it’s rejected), and it can take up to **75 days** to process, versus days for a transcript. Most lenders, schools, and government agencies accept a transcript, so only go this route if you’re specifically told a transcript won’t work for your situation. ## Common Issues to Watch Out For A few mix-ups I see come up again and again with transcript requests: - **Confusing a transcript with a full copy of your return.** A transcript is a data summary, not a scanned image of the actual forms you filed. If you specifically need an exact copy, that requires the $30 Form 4506, not the free Form 4506-T. - **Expecting mailed transcripts at a new address.** Phone and mail requests only go to the address on your most recent return — update your address with the IRS first if you’ve moved, or just use the online account instead. - **Giving up after a “technical problem” error.** IRS online account outages happen occasionally, especially on weekends during filing season — it’s a system-side issue, not something wrong with your identity verification. - **Assuming transcript access means your return is fully processed.** Being able to view your transcript doesn’t confirm your refund is approved — check for code 846 specifically, not just that the page loaded. - **Sending a third party more access than needed.** Only authorize trusted institutions (your own lender or preparer) via Form 8821 or the Tax Pro Account tool, and confirm the request before approving it. ## Looking Ahead: 2027 I don’t expect the core transcript request process to change materially for 2027 — online through your IRS account remains by far the fastest option, and I expect that gap to widen further as the IRS continues pushing more services into the online account portal. Keep an eye on whether the IRS shifts identity verification more heavily toward Login.gov; it’s already accepted as an alternative to ID.me today, and reused Login.gov credentials from other federal services may become the more common path over time. Frequently Asked Questions QWhat's the fastest way to get my tax transcript? AThrough your free IRS Online Account - sign in, go to Tax Records, and view, print, or download any transcript type immediately. QDo I need ID.me to set up an IRS Online Account? AThe IRS accepts either ID.me or Login.gov. If you already have a Login.gov account from another federal service, you can reuse it instead of creating a new ID.me profile. QWhich transcript shows my refund status? AThe Tax Account Transcript - look for code 846, which confirms your refund amount and the date it was issued, or code 570 for an additional-review freeze. QCan I get a transcript mailed to a new address? ANo. Phone and mail requests only go to the address on your most recently filed return - use the online account instead if you've moved. QIs there a fee for a tax transcript? ANo, all five transcript types are free. An actual copy of your filed return, requested via Form 4506 instead of 4506-T, costs $30 per return and can take up to 75 days. QWhat if I need a copy of a specific W-2 or 1099? AContact the employer or payer first - they can usually reissue it for free faster than requesting it through the IRS. **Categories:** Taxes and Retirement **Tags:** taxes --- ### [Should I Be Worried If I Get an IRS Notice or Letter? Will It Affect My Refund?](https://savingtoinvest.com/should-i-be-worried-if-i-get-an-irs-notice-or-letter-will-it-affect-my-tax-return-processing-or-refund-payment/) **Published:** March 14, 2022 **Author:** Andy **Content:** ### Key Takeaways - Most IRS notices are routine - they often just confirm a change, not a problem with your return. - A 5071C identity-verification letter can trigger refund holds up to 60 days even after you verify. - Real IRS letters always show a CP or LTR code, your name, and a partial SSN. - The 2026 Dirty Dozen list flags AI-cloned phone scams and new fake Form 2439 gains claims. A notice or letter from the IRS can sound intimidating, but there are many reasons you might get one. Not every notice is bad news, and that’s a common misconception — one that makes opening the envelope more stressful than it needs to be. IRS notices and letters tell you that something changed on your account. That can range from a routine update, to a request for more identification, to a delay in your return or refund because of additional review. In most cases, there’s little reason to panic if you get a formal IRS notice. Below, I cover the most common reasons you’d receive one, what to do next, how to tell a real IRS letter from a scam, and the specific notices you’re most likely to see this filing season. Covered in this Article: [Toggle](#) - [Reason 1: Money](#Reason_1_Money) - [Reason 2: Information or Identity Verification](#Reason_2_Information_or_Identity_Verification) - [Reason 3: Processing Updates](#Reason_3_Processing_Updates) - [What to Do About Your IRS Notice](#What_to_Do_About_Your_IRS_Notice) - [How to Tell if My IRS Notice Is Real](#How_to_Tell_if_My_IRS_Notice_Is_Real) - [How to Spot a Fake IRS Letter](#How_to_Spot_a_Fake_IRS_Letter) - [Common IRS Notices You Might See This Year](#Common_IRS_Notices_You_Might_See_This_Year) - [Steps to Take When You Receive a Letter](#Steps_to_Take_When_You_Receive_a_Letter) - [Protecting Yourself from Tax Scams](#Protecting_Yourself_from_Tax_Scams) - [IRS “Dirty Dozen” Tax Scams for 2026](#IRS_%E2%80%9CDirty_Dozen%E2%80%9D_Tax_Scams_for_2026) - [Summary of Official IRS Visual Cues](#Summary_of_Official_IRS_Visual_Cues) - [Can I Get Copies of IRS Notices Online?](#Can_I_Get_Copies_of_IRS_Notices_Online) - [How to Dispute or Appeal an IRS Notice](#How_to_Dispute_or_Appeal_an_IRS_Notice) - [Common IRS Letters and Notices](#Common_IRS_Letters_and_Notices) - [Looking Ahead: 2027 Filing Season](#Looking_Ahead_2027_Filing_Season) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [In Conclusion](#In_Conclusion) ## Reason 1: Money Money is the first thing people associate with an IRS notice. Everyone’s first question is: “Do I owe money?” or “Has my refund been reduced?” The IRS does send notices about a balance due, but it also uses notices to tell you about a payment received or an adjustment made to your return. You’ll often see these actions show up on your free [tax transcript](https://savingtoinvest.com/using-your-irs-transcript-to-get-your-tax-return-and-refund-processing-status-and-key-dates/) as specific [transaction codes](https://savingtoinvest.com/irs-tax-topic-error-codes-on-where-is-my-refund-wmr-and-irs2go/) — for example, code 570 for a refund freeze, paired with notice code [971](https://savingtoinvest.com/what-is-tax-code-tc-570-on-my-irs-transcript-and-will-it-delay-my-refund-account-freeze-or-additional-account-actions-pending/). The actual paper notice for that action goes out to the address the IRS has on file for you. If you see a message saying your return [needs further review](https://savingtoinvest.com/what-does-irs-tax-topic-code-152-mean-for-my-refund-payment/), expect your refund to be delayed. You’d likely get a **CP07 notice** in that case (details in the table below), which means the IRS has your return and is holding your refund for a closer review. If the IRS finds no issues, or is satisfied with how you responded, your refund typically arrives within six to 12 weeks. If it does find issues, you’ll get a follow-up letter with instructions — which means the refund lands later than you’d planned. ## Reason 2: Information or Identity Verification The second most common reason for a notice is that the IRS wants more information from you — for example, a [CP05 notice](https://savingtoinvest.com/what-is-a-cp05-tax-notice-and-should-i-worry-when-i-get-this-letter-from-the-irs-around-my-tax-return-and-refund-payment/) asking about earnings and deductions you claimed. Sometimes it’s a specific question about one line item; other times it’s a broader ask. There are also times when the IRS needs to [confirm your identity](https://savingtoinvest.com/i-filed-my-tax-return-it-was-accepted-yet-i-still-havent-seen-any-sign-of-my-refund-irs-identity-review-and-validation-the-likely-reason/), either because your return got flagged by its fraud filters or because of a prior identity-theft case on file. When that happens, the IRS holds your refund until you verify who you are — usually through a **5071C letter** with instructions for proving your identity online or by phone. I want to be clear on this one: getting a 5071C letter doesn’t mean the IRS found proof of identity theft. It means your return matched a pattern the IRS flags for review, and it needs you to confirm the return is really yours before releasing anything. This has become a bigger driver of refund delays than it used to be. The IRS has leaned harder on identity filters this filing season, and returns with data mismatches against prior-year records or third-party forms (W-2s, 1099s) have been facing holds of up to 60 days even after successful verification. If your refund seems slow and you haven’t gotten a specific notice yet, it’s worth checking your IRS online account for a pending identity-verification request before assuming something else is wrong. ## Reason 3: Processing Updates The third reason is a straightforward delay or update in [processing your return](https://savingtoinvest.com/extended-tax-refund-delays-and-expected-irs-processing-schedule-for-returns-with-exceptions/). This just means the IRS has your return but is running behind — nothing to be concerned about, and a regular occurrence during peak filing weeks. In recent years this has shown up more often as the “[refund processing beyond normal timeframe](https://savingtoinvest.com/refund-status-return-processing-has-been-delayed-beyond-the-normal-timeframe/)” message in WMR or IRS2Go. The IRS sends a notice if that delay is tied to a manual review that requires an adjustment or more information from you. ## What to Do About Your IRS Notice So you’ve read the letter — now what? The notice itself should tell you what the IRS is requesting, what it already changed, and what your options are. Most letters spell out your next step: send documents, agree to the change, or send a payment if you end up owing a balance. Plenty of IRS mail needs no action at all — plain informational notices about things like advance credit or stimulus payments fall into that category. When action is required, the letter includes both instructions and a response deadline. The IRS has [specific guidelines](https://savingtoinvest.com/how-long-do-i-have-to-wait-after-an-irs-notice-to-get-my-tax-refund/) on how long it takes to send notices, how long you have to respond, and when to expect a resolution. If you’re worried about a deadline, call the number printed at the top of the letter and say so — IRS agents deal with this all day and would rather hear from you early than have you miss the window. Once you’ve followed the instructions — sent payment or additional information — keep the original letter. That way you can confirm you received it and followed every step. Anything you send to the IRS should be a copy, never an original or your only version of a document. I’d file the letter and a copy of whatever you sent together, plus keep an electronic copy of all correspondence. That gives you a paper trail if you need to follow up later. ## How to Tell if My IRS Notice Is Real You check the mailbox and see a plain white envelope with the Department of the Treasury seal in the corner. Your first instinct might be to wonder if you made a mistake on your return — scammers count on that reaction, and use it to push people into sending money to fraudulent accounts. Knowing what an authentic IRS letter actually looks like is the best defense against that. **Notice or letter number.** Every legitimate piece of IRS mail carries a “CP” or “LTR” code followed by a string of numbers, usually in the top right corner — for example, CP2000 for a common underreported-income notice. **Federal seal and return address.** A real letter carries a crisp, professionally printed Treasury seal, not a blurry scan. The return address lists the Department of the Treasury and IRS, along with a specific service center city — Austin, Cincinnati, Fresno, Holtsville, Kansas City, Memphis, Ogden, or Philadelphia are common ones. **Your actual name and partial TIN.** The IRS already knows who you are, so a real letter includes your legal name as it appears on your filing and a partial Social Security Number or ITIN. If a letter greets you as “Dear Valued Taxpayer” or “Current Resident,” that’s a strong sign it’s fake. **Clear structure.** I find that official letters are broken into sections like “Summary of Account,” “What You Need to Do,” and “Contact Information.” That structure exists to help you act without needing a tax degree. **A real phone number and .gov links.** The toll-free contact number sits in the top right corner or near the end of the letter. Be cautious of any number that doesn’t start with an 800 prefix, or any link that doesn’t end in “.gov.” **A specific, reasonable deadline.** Legitimate notices give you 30 or 60 days to respond or pay before further interest accrues. Scammers lean on “urgent” or “immediate” language to force a snap decision — the IRS’s tone is firm but not threatening. ## How to Spot a Fake IRS Letter Scammers keep getting more sophisticated, but they still make mistakes that give them away. The single biggest red flag: a request to pay using gift cards, prepaid debit cards, wire transfers, or any payment site that isn’t IRS.gov. The IRS will never ask for that. A few more tells I’d watch for: - **Typos and inconsistent formatting.** IRS letters are highly standardized and proofread. Awkward phrasing or mismatched fonts point to a fake. - **Aggressive or threatening language.** The IRS won’t threaten an arrest or immigration action in a first letter — its collection process runs through multiple notices over months, not a single ultimatum. - **A strange envelope.** Genuine IRS envelopes usually carry a “Penalty for Private Use, $300” line near the return address, and they don’t use bright colors, “official prize” labels, or exclamation points. - **A return address that doesn’t match a real IRS service center.** You can cross-check the city and zip code against known IRS facilities if something looks off. ## Common IRS Notices You Might See This Year Identity-verification letters (5071C, and the related CP5071 series) have become one of the more common notices in the mail as the IRS leans harder on fraud filters. These ask you to use an online tool, or occasionally a phone call, to confirm you’re the person who filed. CP14 is another frequent one — the standard letter for an unpaid balance, listing what you owe plus any interest or penalties accrued since the filing deadline. **CP2000 — the underreported income letter.** This goes out when the income your employer or bank reported doesn’t match what’s on your return. It’s not an audit; it’s a proposed adjustment, and it includes a side-by-side table of what you reported versus what the IRS has on file. I’d compare that table against your own W-2s and 1099s before agreeing to anything. You generally have **30 days** from the notice date to agree, dispute, or request more time — missing that window can trigger automatic assessment of the proposed amount. These notices have gotten more common since Form 1099-DA (digital asset broker reporting) was first filed in 2026 for 2025 transactions — it’s a new third-party data source feeding the same automated matching system that generates CP2000s, so crypto traders in particular are seeing more of them. **CP11 — changes to your return.** If the IRS catches a calculation error while processing your return, it sends a CP11 explaining the change: your original figures next to the corrected ones, and how that shifts your refund or balance due. Check those numbers against your own records before you agree. CP11, CP12, CP13, and CP14 all cover different versions of this same kind of adjustment — see the table below for the specifics on each. ## Steps to Take When You Receive a Letter - **Verify the notice number.** Look for the CP or LTR code in the top right corner. - **Check your records.** Compare the IRS figures against your own copy of the return. - **Respond promptly.** If you agree, follow the payment or confirmation instructions. - **Dispute if you disagree.** Use the form the notice provides, and include supporting documents. - **Use the online portal when you can.** Responding through your IRS online account is generally faster than mail. *Questions or updates on refund timing come up a lot this time of year — [subscribe here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) and I’ll flag anything that changes.* ## Protecting Yourself from Tax Scams Digital security matters more every filing season. The IRS will almost always contact you by mail first — it doesn’t initiate contact by email, text, or social media to request personal or financial information. A “digital letter” out of nowhere is a phishing attempt, full stop. One thing worth calling out for this year specifically: scam letters and emails have gotten harder to spot. Generative AI tools let scammers match the IRS’s tone, formatting, and even specific notice language far more convincingly than the typo-riddled attempts of a few years ago. The visual and structural checks above still work, but don’t let polished writing alone convince you a letter is real — verify the notice number and payment method too. If you get a letter you suspect is fake, don’t call the number printed on it. Report it to the Treasury Inspector General for Tax Administration (TIGTA), and forward suspicious emails or texts to the [IRS phishing reporting page](https://www.irs.gov/help/report-fraud/report-fake-irs-treasury-or-tax-related-emails-and-messages). If a notice involves a large dollar amount or a formal audit, it’s worth bringing in an Enrolled Agent or CPA who can represent you before the IRS. I’d lean on a professional especially for anything involving business income or assets held abroad — the stakes for getting those wrong are higher. ## IRS “Dirty Dozen” Tax Scams for 2026 The IRS releases its annual “Dirty Dozen” list every March, and the 2026 edition leans heavily on AI-powered scams alongside the usual suspects. Here’s what made this year’s list: - **AI-enabled IRS impersonation by phone.** Scam calls have gotten more convincing with spoofed caller ID and AI voice-cloning that mimics official-sounding IRS agents — don’t trust a call just because the voice or caller ID looks legitimate. - **IRS impersonation by email and text.** Messages that appear to be from the IRS direct you to fake IRS websites and prompt you to enter personal or financial information. The real IRS doesn’t initiate contact this way. - **Misleading tax advice on social media.** Viral posts pushing people to misuse legitimate forms (like claiming credits or deductions you don’t qualify for) to inflate a refund — bad advice that can leave you owing penalties later. - **“OIC mills.”** Firms that aggressively market Offer in Compromise settlements, overpromising results and charging high upfront fees to taxpayers who don’t actually qualify for a reduced settlement. - **Abusive undistributed long-term capital gains claims.** New to this year’s list — the IRS has seen a jump in overstated or fabricated claims tied to Form 2439 (Notice to Shareholder of Undistributed Long-Term Capital Gains). The common thread across this year’s list: AI is making scams look and sound more legitimate than ever, whether it’s a cloned voice on the phone or polished, official-looking text. Treat unsolicited tax advice and unexpected IRS contact with the same skepticism regardless of how convincing it seems. ## Summary of Official IRS Visual Cues FeatureLegitimate IRS LetterPotential Scam LetterNotice numberClearly marked (e.g., CP2000, LTR 5071C)Missing or generic numberPayment methodDirections to IRS.gov or check to “U.S. Treasury”Gift cards, wire transfer, or payment appsToneProfessional, factual, instructionalAggressive, threatening, or urgentPersonal infoCorrect name and partial SSN/TIN“Dear Taxpayer” or generic greetingWebsite linksAlways end in “.gov”End in “.com,” “.net,” or “.org” ## Can I Get Copies of IRS Notices Online? Yes, for certain notices. You’ll first need to set up and verify your free [IRS online account](https://www.irs.gov/payments/your-online-account). From there you can: - See data from your most recently filed return, including your adjusted gross income, and pull transcripts - View recent IRS payments, including past stimulus and advance Child Tax Credit payments - View certain IRS notices directly - See five years of payment history, including estimated tax payments - Check any pending or scheduled payments You can also switch your IRS communication preferences to paperless and get email alerts for new notices — I’d recommend doing that if you haven’t already. ## How to Dispute or Appeal an IRS Notice You can dispute almost anything on a notice that looks inaccurate — an incorrect amount owed, or information that doesn’t match your records. Mail the IRS directly using the contact section at the top of the notice, which lists where to send letters and documents related to the dispute. Keep the originals in case there’s a delay or follow-up question. Disputing a notice takes time, but note that you filed before the given deadline so there’s a record of it. Plenty of filers skip disputing a notice out of fear it’ll trigger a penalty. If something looks wrong, call the IRS directly — it’s the simplest path, and you’ll have a record of when you raised the question. ## Common IRS Letters and Notices Here are some of the more common IRS notices or letters you may see during the year: IRS Notice CodeNotice Description and PurposeCP07Sent after the IRS receives your return and holds it — and any refund — for a more thorough review, including an examination of benefits or itemized deductions claimed. See the [official CP07 notice page](https://www.irs.gov/individuals/understanding-your-cp07-notice).[CP12](https://savingtoinvest.com/irs-tax-notices-for-adjustments-due-to-tax-liability-or-refund-calculation-errors-cp11-cp12-cp13-and-cp14/)The IRS corrected a mistake and identified an overpayment, including a potential refund due to you. The letter explains the correction and what’s due back, or how it was applied against an existing liability.CP14Sent when the IRS finds you have an overdue balance. This doesn’t mean you made a mistake — it’s simply a notice that accounts need settling.CP49Sent when the IRS uses your refund to cover an existing payment obligation. See the [official CP49 notice page](https://www.irs.gov/individuals/understanding-your-cp49-notice).CP501Your balance is due. Pay, call the IRS to discuss it, or revise your payment agreement.CP502A second reminder to pay. Pay what you can to limit additional penalties and interest.[CP504](https://savingtoinvest.com/cant-afford-to-pay-my-taxes/)The IRS’s final notice before further collection action. It states how much you owe, including penalties and interest, and how to pay. If you can’t pay in full, see my guide on what happens next and how the escalation to a Letter LT11 works — don’t let this one sit.CP2000Your reported income or payments don’t match IRS records. Complete the response form and follow the instructions provided.CP71CA reminder of an unpaid balance that can affect passport renewal, plus accruing interest. Pay the amount or talk to a tax debt professional.CP523Notice that an installment agreement is ending and the IRS may move to collect. Make a payment before the termination date, and consider a tax debt professional.LTR3172Notice that the IRS filed a federal tax lien. Complete Form 12153 and return it with payment or a collection due process request.LTR3219bA statutory notice of deficiency — the IRS is assessing additional tax it says you owe, and you have 90 days to petition Tax Court if you disagree.5071C / CP5071 seriesIdentity verification notice. The IRS is holding your return until you confirm you’re the one who filed it — usually done online through IRS ID Verify or by phone. See the [official CP5071 series notice page](https://www.irs.gov/individuals/understanding-your-cp5071-series-notice). ## Looking Ahead: 2027 Filing Season A few things I’m watching heading into next filing season. Identity-verification notices (5071C/CP5071) have been climbing as the IRS leans on data-matching to catch fraud, and I don’t expect that to ease up — if anything, expect more returns to get flagged as third-party reporting (W-2s, 1099s, and the newer Form 1099-DA for digital assets) gets checked more aggressively. AI-generated scam mail and emails are also going to keep getting more convincing, based on what the IRS has flagged in its recent “Dirty Dozen” scam warnings. The visual and structural checks in this post — notice number, return address, payment method — will matter more than “does this sound official,” since AI now makes plenty of fakes sound official. I’ll update this page as the IRS changes notice formats or verification steps for the new filing season. ## Common Issues to Watch Out For I get questions about this fairly often, so a few things worth flagging: - **Ignoring a notice because it “sounds like a scam.”** If you’re not sure, verify the notice number on IRS.gov or call the IRS directly using a number you look up yourself — don’t ignore genuine mail just because it seems unusual. - **Ignoring a genuine identity-verification request.** A 5071C letter you don’t act on means your refund sits frozen indefinitely. Verify as soon as you can, ideally through the online tool. - **Sending original documents.** Always send copies. If the IRS needs the original of something, it will say so explicitly. - **Missing the response deadline.** Even a short delay past the 30- or 60-day window can trigger automatic collection steps. Call ahead if you need more time. - **Assuming a CP2000 is an audit.** It’s a proposed adjustment based on a data mismatch, not an audit notice — though ignoring it can eventually lead to one. ## In Conclusion There’s no reason to panic the moment an IRS notice shows up. [Notices from the IRS](https://savingtoinvest.com/irs-cp10-notice-explained/) are routine, and they’re often just documenting a change the IRS already made. Read it carefully, and if you think it’s wrong, you’ll have a chance to provide documentation or appeal. Frequently Asked Questions QDoes getting an IRS notice mean I did something wrong? ANot usually. Many notices just confirm a routine change, a payment received, or a processing delay - not an error on your part. QHow can I tell if an IRS letter is real? AA real letter has a CP or LTR code, your name and partial SSN, a crisp Treasury seal, a toll-free number, and links ending in '.gov' - never gift cards or wire transfers as payment. QWhat is a CP2000 notice? AIt's a proposed adjustment sent when income reported by your employer or bank doesn't match your return, not an audit. You generally have 30 days to agree, dispute, or request more time. QWhy is my refund frozen after a 5071C letter? AThe IRS is asking you to confirm your identity before releasing your refund. It doesn't mean fraud was found - just that your return matched a pattern flagged for review, and holds can run up to 60 days even after you verify. QWhat's on the IRS's 2026 Dirty Dozen scam list? AAI-voice-cloned phone impersonation, fake IRS emails and texts, misleading social media tax advice, 'OIC mills' overselling settlements, and newly added abusive Form 2439 capital-gains claims. QCan I get copies of IRS notices online? AYes, for certain notices, once you set up a verified IRS online account - you can also view payment history and switch to paperless notifications. QWhat should I do if I disagree with a notice? ARespond by the deadline using the contact information on the notice, include supporting documents, and keep copies of everything you send. **Categories:** Taxes and Retirement --- ### [How to Pick the Right Tax Filing Status in 2026 (And Actually Lower Your Bill)](https://savingtoinvest.com/pick-your-correct-tax-filing-status-to-minimize-your-taxes/) **Published:** January 16, 2012 **Author:** Andy **Content:** ### Key Takeaways - Your marital and household status on December 31 sets your filing status for the entire tax year. - Head of Household's $24,150 standard deduction beats Single's $16,100, but requires paying over half your home's costs. - Divorced parents can both claim Head of Household only with different qualifying children, not one shared child. - Married Filing Separately usually costs more overall, but can help with student loan payments or high medical expenses. Your filing status is decided by one date: December 31. Whatever your marital and household situation looks like on that day determines which of the five IRS filing statuses you can use for the entire year, even if your situation changed on December 30. That single rule trips up more people than almost anything else on a tax return. Get the status wrong, and you can leave real money on the table — the standard deduction alone swings by $16,100 between filing separately and filing jointly for 2026. Covered in this Article: [Toggle](#) - [The Five Filing Statuses, Briefly](#The_Five_Filing_Statuses_Briefly) - [Why the OBBB Made This More Important](#Why_the_OBBB_Made_This_More_Important) - [The Married Filing Separately Trap](#The_Married_Filing_Separately_Trap) - [Two Examples](#Two_Examples) - [Can Both Divorced Parents Claim Head of Household?](#Can_Both_Divorced_Parents_Claim_Head_of_Household) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) ## The Five Filing Statuses, Briefly **Single** applies if you’re unmarried, divorced, or legally separated under your state’s law as of December 31. **Married Filing Jointly (MFJ)** combines both spouses’ income onto one return. It’s the most common status for married couples and usually — though not always — produces the lowest combined tax. **Married Filing Separately (MFS)** means each spouse files their own return. It almost always results in a higher combined tax bill than filing jointly, since MFS filers lose or get reduced access to several credits. **Head of Household (HoH)** is for unmarried taxpayers who paid more than half the cost of keeping up a home for themselves and a qualifying dependent. It gets a bigger standard deduction and wider tax brackets than Single. **Qualifying Surviving Spouse** — the current IRS name for what used to be called Qualifying Widow(er) — is available for up to two years after a spouse’s death if you have a dependent child and haven’t remarried. It lets you keep using the MFJ standard deduction and brackets during that window. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates as filing season approaches.* ## Why the OBBB Made This More Important The One Big Beautiful Bill (OBBB) made the suspension of the personal exemption permanent — you no longer get an extra deduction just for existing, the way filers did before 2018. That makes the standard deduction (which varies significantly by status) do more of the heavy lifting than it used to. The OBBB also added a temporary $6,000 senior deduction for filers 65 and older, available for tax years 2025 through 2028 on top of the regular standard deduction and the existing age-65 add-on. It phases out at higher incomes, but for many retirees it’s a meaningful reason to double-check which filing status maximizes the combined deduction stack. That existing age-65 add-on is separate from the OBBB senior deduction and worth keeping straight: it’s an additional **$2,050** (Single/HoH) or **$1,650** per spouse (MFJ/MFS) added to your regular standard deduction if you’re 65 or older or blind — and it doubles if you’re both. For the full current-year [tax brackets that pair with each filing status](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/), see my complete bracket breakdown. ## The Married Filing Separately Trap I get asked a lot whether filing separately is ever worth it. Usually the honest answer is no — MFS filers can’t claim the Earned Income Tax Credit, get reduced access to education credits and the Child and Dependent Care Credit, and face a lower Capital Loss deduction limit ($1,500 instead of $3,000). But there are real exceptions. If one spouse has large uninsured medical expenses (the 7.5%-of-AGI floor is easier to clear on one lower income), or you’re on an income-driven student loan repayment plan where separate filing keeps your payment based on individual rather than combined income, MFS can come out ahead despite the higher headline tax. I’ve written a full breakdown of when separating your return backfires versus helps in [Filing Taxes Separately? Here’s When That’s a Mistake — and When It Isn’t](https://savingtoinvest.com/filing-taxes-separately-was-a-mistake-heres-how-to-fix-it/) — worth reading before you commit either way. ## Two Examples **Mark**, 34, is unmarried and pays the full cost of a home where his 10-year-old daughter lives with him all year. He qualifies for Head of Household, not Single — that gets him a $24,150 standard deduction instead of $16,100, plus wider 10% and 12% tax brackets. That’s an $8,050 larger deduction just from claiming the status he actually qualifies for. **Sarah and Josh** are married with a combined income of $145,000. Filing jointly, their standard deduction is $32,200 and they qualify for the full [Child Tax Credit](https://savingtoinvest.com/child-and-kiddie-tax-credit-and-income-thresholds/). If they filed separately instead, each would use a $16,100 deduction (same combined total) but Sarah would lose eligibility for several credits tied to combined income thresholds — in their case, MFJ saves them roughly $2,400. Whatever status you land on, it’s worth checking the [current refund schedule](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) once you file, since processing timelines don’t vary meaningfully by filing status — what matters most is whether your return is e-filed and error-free. ## Can Both Divorced Parents Claim Head of Household? This comes up constantly after a divorce with kids: only one parent can claim a given child as a qualifying child for Head of Household, the Child Tax Credit, the dependent care credit, and the [EITC](https://savingtoinvest.com/earned-income-tax-credit-eitc-qualification-and-income-threshold-limits/). That’s decided by physical custody — which parent the child actually lived with for more than half the year — not by what your divorce decree says about who gets to claim the tax benefits. **Yes, both parents can claim HoH in the same year — but only if you have different qualifying children.** Each parent needs to maintain a separate home and have at least one child living with them more than half the year. If you split multiple kids between households this way, both returns can claim HoH without triggering an IRS mismatch, since each parent is claiming a different dependent. If you share just **one** child on an exact 50/50 custody schedule, only one of you can claim HoH for that child. If you and your ex can’t agree on who does, the IRS tie-breaker rules decide: generally the parent the child spent more nights with during the year, or if the nights are exactly equal, the parent with the higher adjusted gross income. One common mix-up: if you signed a Form 8332 giving your ex the right to claim a child for the Child Tax Credit, that does **not** also hand them Head of Household eligibility. HoH always requires the child to have actually lived with that parent more than half the year — a requirement Form 8332 doesn’t waive, unlike the CTC. ## Common Issues to Watch Out For I get questions about filing status every season, and the same few mix-ups come up again and again. **Assuming divorce mid-year means you file Single.** It’s your status on December 31 that counts. If your divorce isn’t finalized until January, you’re still considered married for the prior tax year. **Claiming Head of Household without a qualifying dependent living with you.** The dependent generally has to live in your home more than half the year — a child away at college for most of the year can still count under specific rules, but a dependent parent you support but who lives elsewhere usually doesn’t qualify you for HoH (though they may still qualify you as a dependent). **Not running the numbers both ways when eligible for more than one status.** If you could file as Single or HoH, or MFJ or MFS, don’t guess — most tax software lets you preview your refund under each option before you submit. **Overlooking state-level filing status rules.** Some states require you to match your federal filing status; others let you choose independently. Check your state’s specific rule before assuming they always align. ## Looking Ahead: 2027 Outlook The IRS typically releases the following year’s inflation-adjusted standard deduction figures in October or November. Based on recent inflation trends, I’d expect the 2027 amounts to rise modestly — roughly 2–3% above the 2026 figures, rounded to the nearest $50. The bigger open question is whether the temporary $6,000 senior deduction gets extended past its current 2028 expiration, or whether any future legislation revisits the personal exemption suspension. I’ll update this page once the IRS publishes official 2027 numbers. Frequently Asked Questions QWhat determines my filing status for the whole year? AYour marital and household status on December 31 of the tax year. Even if your situation changes on December 30, that snapshot date determines which filing statuses you're eligible to use for the entire year. QCan I choose Head of Household if I'm still legally married? AOnly if you're 'considered unmarried' - you lived apart from your spouse for the last six months of the year, paid more than half the cost of your home, and have a qualifying dependent living with you more than half the year. QIs Married Filing Separately ever a good idea? AUsually it results in a higher combined tax bill, but it can help in specific cases: large uninsured medical expenses on one spouse's income, income-driven student loan repayment plans based on individual income, or situations requiring legal separation of tax liability. QHow much is the 2026 standard deduction by filing status? A$16,100 for Single and Married Filing Separately, $32,200 for Married Filing Jointly and Qualifying Surviving Spouse, and $24,150 for Head of Household. Filers 65 or older or blind get an additional $2,050 (Single/HoH) or $1,650 per spouse (MFJ/MFS). QWhat happens if I qualify for more than one filing status? AYou should calculate your tax under each eligible status and choose whichever results in the lowest tax liability - most tax software lets you preview this before submitting your return. QCan both divorced parents file Head of Household in the same year? AYes, but only if you have different qualifying children - each parent must maintain a separate home and have at least one child living with them more than half the year. If you share just one child on a 50/50 custody schedule, only one parent can claim HoH for that child; IRS tie-breaker rules (generally the parent with more overnights, or higher AGI if exactly equal) decide who if you can't agree. **Categories:** Taxes and Retirement **Tags:** credit, deduction, filing status, taxes --- ### [529 Plan Rules for 2026: Contribution Limits, State Tax Deductions, and the New Roth IRA Rollover](https://savingtoinvest.com/how-to-choose-a-529-plan-and-pay-now-for-future-college-costs-contribution-limits-fees-and-tax-rules/) **Published:** October 23, 2014 **Author:** Andy **Content:** ### Key Takeaways - You can gift $19,000 a year per child to a 529 tax-free, or superfund $95,000 at once. - OBBBA doubled the annual K-12 withdrawal cap to $20,000 in 2026 and broadened qualifying K-12 expenses. - SECURE 2.0 lets you roll up to $35,000 lifetime of unused 529 funds into the beneficiary's Roth IRA. - The 10% penalty on a non-qualified withdrawal hits only the earnings portion, never your original contributions. Anyone can put up to $19,000 a year into a 529 plan for a single child without touching the federal gift tax exclusion — $38,000 for a married couple. Want to front-load it? You can “superfund” up to $95,000 in one year ($190,000 joint) by treating it as five years of gifts at once. A few things about 529 plans have genuinely changed since I first wrote about choosing one for my son. Here’s what’s current for 2026, plus two rule changes worth knowing about even if you already have a plan open. Covered in this Article: [Toggle](#) - [What a 529 Plan Actually Is](#What_a_529_Plan_Actually_Is) - [2026 Contribution and Gift Tax Rules](#2026_Contribution_and_Gift_Tax_Rules) - [What OBBBA Changed for 529s in 2026](#What_OBBBA_Changed_for_529s_in_2026) - [What Actually Happens on a Non-Qualified Withdrawal](#What_Actually_Happens_on_a_Non-Qualified_Withdrawal) - [The New 529-to-Roth IRA Rollover](#The_New_529-to-Roth_IRA_Rollover) - [State Tax Deductions: Still Worth Checking, Still All Over the Map](#State_Tax_Deductions_Still_Worth_Checking_Still_All_Over_the_Map) - [Tips for Choosing a Plan](#Tips_for_Choosing_a_Plan) - [Common Mistakes I See With 529s](#Common_Mistakes_I_See_With_529s) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) ## What a 529 Plan Actually Is There are two flavors, and they work differently. A **529 prepaid tuition plan** lets you lock in tuition at today’s rate at a participating public college in your state, then use those credits later regardless of how much tuition has risen by then. Most are state-sponsored, cover tuition only (not room and board), and restrict you to in-state or a limited list of private schools. A **529 college savings plan** is the more common and flexible option. You invest contributions in mutual funds or age-based portfolios, the balance grows tax-free, and withdrawals for qualified expenses — tuition, room and board, books, and more — at any accredited school nationwide come out tax-free too. There’s no rate lock-in, so your balance can also lose value in a downturn. ## 2026 Contribution and Gift Tax Rules The federal annual gift tax exclusion is $19,000 per giver, per beneficiary, for 2026. Grandparents, aunts, uncles, and family friends can each give that amount to the same child’s 529 without any gift tax filing. If you want to front-load years of contributions — common right after a birth — the superfunding election lets an individual contribute $95,000 in a single year (or $190,000 for a married couple) by electing to treat it as five years of $19,000 annual gifts on IRS Form 709. The catch: you can’t make additional annual-exclusion gifts to that same child for the next five years without dipping into your lifetime exemption. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates as 529 and education savings rules keep evolving.* ## What OBBBA Changed for 529s in 2026 The One Big Beautiful Bill (OBBB), passed in 2025, made two changes that matter if you’re already using a 529 for K-12 costs or credentialing programs. **The K-12 withdrawal cap doubled.** You can now withdraw up to $20,000 per year tax-free for K-12 tuition and qualified expenses, up from $10,000 previously. **Qualified K-12 expenses got a lot broader.** Curriculum materials, textbooks, tutoring (from a qualifying provider), fees for the SAT, ACT, AP exams, and dual-enrollment programs, and therapies for kids with disabilities (occupational, speech, behavioral) now all count. Previously, K-12 withdrawals were essentially limited to tuition. **Postsecondary credentialing now qualifies too.** Tuition, exam fees, and materials for state-licensed certifications, apprenticeships, and recognized workforce credential programs are now eligible 529 expenses — not just traditional degree programs. ## What Actually Happens on a Non-Qualified Withdrawal If money comes out of a 529 for something other than a qualified expense, two things are commonly misunderstood about how the penalty actually works. **The 10% penalty applies only to earnings, not your contributions.** You already paid income tax on the money you put in, so a non-qualified withdrawal splits into two pieces: your original contributions come out completely tax- and penalty-free, and only the *growth* portion owes both ordinary income tax and the 10% penalty. A $50,000 withdrawal that’s $30,000 in contributions and $20,000 in earnings only triggers tax and penalty on the $20,000. **A scholarship waives the penalty (not the tax).** If your child receives a tax-free scholarship, you can withdraw up to that same amount from the 529 without the 10% penalty — you’ll still owe ordinary income tax on the earnings portion of that withdrawal, but the penalty itself doesn’t apply. The same exception generally covers other tax-free educational assistance, like certain veterans’ education benefits. ## The New 529-to-Roth IRA Rollover This is the change I get the most questions about, because it addresses the single biggest hesitation people have about 529 plans: what happens if my kid gets a scholarship, skips college, or just doesn’t use it all? Under [SECURE 2.0](https://savingtoinvest.com/navigating-the-new-rules-how-the-secure-2-0-act-impacts-your-retirement-catch-up-contributions/), you can now roll over up to $35,000 (lifetime, not annual) of leftover 529 funds directly into the beneficiary’s own Roth IRA, tax- and penalty-free. A few conditions apply: the 529 account has to have been open at least 15 years, the rollover in any given year can’t exceed that year’s Roth IRA contribution limit ($7,500 for 2026), any contributions and earnings from the last 5 years aren’t eligible, and the beneficiary needs earned income at least equal to the amount rolled over that year. One detail that trips people up: **the MAGI-based income limits that normally restrict who can contribute to a Roth IRA don’t apply to this rollover.** A high-earning beneficiary who couldn’t otherwise contribute directly to a Roth IRA can still receive a 529-to-Roth rollover, since it runs on its own separate set of rules rather than the standard [Roth contribution income phase-outs](https://savingtoinvest.com/traditional-ira-versus-roth-ira-contribution-and-phase-out-income-limits/). It’s not a loophole for turning college savings into unlimited retirement savings, but it meaningfully lowers the cost of “oversaving” in a 529 versus 10 or 15 years ago. ## State Tax Deductions: Still Worth Checking, Still All Over the Map Nearly 40 states offer some kind of income tax deduction or credit for 529 contributions, but the amounts vary from $500 a year to fully unlimited, and a handful of states — including California, Delaware, and Hawaii — offer none at all regardless of which plan you use. Nine states let you deduct contributions to *any* state’s 529 plan, not just their own (marked with an asterisk below). Most other states only give the deduction if you use their own state’s plan. Every state also caps the *aggregate* lifetime balance per beneficiary — generally $235,000 to over $600,000 — though very few families ever get close to that ceiling. StateState Tax Benefit (Single / Joint)Aggregate Lifetime LimitAlabama$5,000 / $10,000$475,000AlaskaNo state income tax$550,000Arizona\*$2,000 / $4,000$590,000Arkansas\*$5,000 / $10,000$500,000CaliforniaNone$529,000Colorado$25,400 / $38,100$500,000Georgia$4,000 / $8,000$235,000Illinois$10,000 / $20,000$500,000Kansas\*$3,000 / $6,000$501,000New Jersey$10,000 / $10,000 (income capped at $200,000)$305,000New MexicoUnlimited$500,000New York$5,000 / $10,000$520,000Ohio\*$4,000 / $4,000 (unlimited carryforward)$541,000Pennsylvania\*$19,000 / $38,000 (tied to federal gift exclusion)$511,758South CarolinaUnlimited$575,000TexasNo state income tax$500,000Virginia$4,000 / $4,000 (no limit age 70+)$550,000West VirginiaUnlimited$550,000 \\\*Allows the deduction for contributions to any state’s 529 plan, not just the in-state one. This is a partial list covering the states I get asked about most — all 50 states plus DC have their own figures, and legislatures adjust them periodically (Ohio and Rhode Island, for example, allow unlimited carryforward of unused deductions into future years). Check [savingforcollege.com’s full state-by-state table](https://www.savingforcollege.com/article/maximum-529-plan-contribution-limits-by-state) for every state’s exact current-year number. ## Tips for Choosing a Plan **Start with your own state’s plan.** If your state offers a deduction, using your state’s plan (rather than another state’s) is usually required to claim it. **Don’t overextend to get a tax break.** A modest, consistent contribution beats a stretched budget every time — the deduction is a bonus, not the point. **Check the fees.** Some plans charge sales loads of several percent plus annual administrative fees. High fees can outweigh a state tax deduction over enough years. **Consider flexibility if you’re not sure where your child will attend.** A college savings plan (versus a prepaid tuition plan) lets you use funds at any accredited school nationwide, which matters if a move or a change of school type is possible. ## Common Mistakes I See With 529s **Assuming money left in a 529 is “wasted” if a kid doesn’t go to a traditional 4-year college.** Between the OBBBA credentialing expansion and the Roth IRA rollover option, unused funds have a lot more flexibility than they did even three years ago. **Thinking a non-qualified withdrawal wipes out the whole balance to tax and penalty.** It doesn’t — only the earnings portion is taxed and penalized. Your original contributions always come out clean. **Not checking whether your state deduction requires using the in-state plan.** Some states allow any state’s plan for the deduction; most require their own. **Assuming New Jersey has no 529 deduction.** It does — up to $10,000 a year for the in-state NJBEST plan, if your gross income is $200,000 or less. It’s a newer benefit (added in 2022), so it’s easy to miss if you’re working from older information. **Treating the 5-year superfunding election casually.** Filing Form 709 incorrectly, or making additional gifts to the same child during the 5-year window, can trigger exactly the gift tax reporting you were trying to avoid. **Confusing the 529-to-Roth rollover with an unlimited backdoor.** The $35,000 lifetime cap, the 15-year account age rule, and the annual Roth contribution limit all apply — it’s a release valve, not a strategy to fund a second retirement account. ## Looking Ahead: 2027 Outlook I’ll be watching whether the annual gift tax exclusion ticks up to $20,000 for 2027 (it moves in $1,000 increments tied to inflation, and 2026’s jump to $19,000 suggests another increase is plausible). I’m also watching how many families actually use the 529-to-Roth rollover once more accounts hit the 15-year mark, and whether more states adjust their deduction caps in response to the OBBBA changes. For the mechanics of financing college beyond just the 529 — financial aid, scholarships, and other savings vehicles — see my [guide to paying for college](https://savingtoinvest.com/how-to-pay-for-college-funds-savings-and-alternatives/). And if you’re weighing whether to prioritize a 529 over your own [401(k) contributions](https://savingtoinvest.com/maximum-employee-and-employer-401k-contribution-limits-and-catch-up-amounts/), I’ve laid out my thinking in [529 vs. retirement savings](https://savingtoinvest.com/saving-for-the-future-college-tuition-vs-retirement/). Frequently Asked Questions QHow much can I contribute to a 529 plan in 2026 without gift tax implications? AUp to $19,000 per year, per beneficiary, from any individual giver ($38,000 for a married couple), without any gift tax filing required. QWhat is 529 superfunding? AElecting to treat a single large contribution - up to $95,000 individual or $190,000 joint - as five years of annual gifts at once, avoiding gift tax on the lump sum, provided you file Form 709 and don't make additional gifts to that beneficiary for five years. QCan I use 529 funds for K-12 private school in 2026? AYes, up to $20,000 per year (doubled from $10,000 under OBBBA), and the list of qualifying expenses now includes tutoring, curriculum materials, and standardized test fees, not just tuition. QDoes the 10% penalty on a non-qualified 529 withdrawal apply to my entire withdrawal? ANo. The 10% penalty and income tax apply only to the earnings portion of a non-qualified withdrawal. The portion representing your original contributions comes out tax- and penalty-free, since you already paid tax on that money before contributing it. QIf my child gets a scholarship, can I withdraw from the 529 without a penalty? AYes. You can withdraw up to the amount of a tax-free scholarship (or similar tax-free educational assistance) without the 10% penalty. You'll still owe ordinary income tax on the earnings portion of that withdrawal, but the penalty itself is waived. QWhat happens to unused 529 money if my child doesn't go to college? AYou can roll over up to $35,000 lifetime into the beneficiary's Roth IRA (subject to account-age and annual-limit rules), use it for credentialing or apprenticeship programs, change the beneficiary to another family member, or withdraw it with taxes and a 10% penalty on earnings. QDoes the Roth IRA income limit apply to a 529-to-Roth rollover? ANo. The MAGI-based income limits that normally restrict Roth IRA contributions don't apply to the 529-to-Roth rollover - it runs on its own separate set of rules (15-year account age, $35,000 lifetime cap, annual Roth contribution limit, and the beneficiary's earned income) rather than the regular Roth income phase-outs. QDoes every state offer a 529 tax deduction? ANo. Nearly 40 states offer some deduction or credit, but a handful - including California, Delaware, and Hawaii - offer none regardless of which plan you use. QDo I have to use my own state's 529 plan to get a state tax deduction? AIn most states, yes. A handful of states (including Arizona, Kansas, Ohio, and Pennsylvania) allow the deduction for contributions to any state's plan. QIs a 529 plan better than the new Trump Account for my kid? AThey serve different purposes - a 529 is education-focused with tax-free growth for qualifying expenses, while a Trump Account functions more like an early-start retirement account. Many families end up using both; a direct comparison is planned as an upcoming post. **Categories:** Finance and Investing 101, Saving and Investing ideas **Tags:** 529, College, deduction, IRA, prepaid, tuition --- ### [401(k) Loans vs. Hardship Withdrawals: What Changed Under SECURE 2.0 (2026 Guide)](https://savingtoinvest.com/401k-cash-out-for-loans-vs-hardship/) **Published:** November 20, 2009 **Author:** Andy **Content:** ### Key Takeaways - A 401(k) loan caps at $50,000 or 50% of your vested balance, repaid over five years. - The IRS recognizes seven safe-harbor hardship reasons - credit card and other general debt isn't one of them. - Since 2023, most plans accept self-certification for a hardship withdrawal instead of requiring medical bills or eviction notices. - Leaving your job with a 401(k) loan outstanding gives you until your tax filing deadline to repay it. If you’re staring at your 401(k) balance wondering how to get at it before retirement, you’ve got three real options: a loan, a hardship withdrawal, or one of several penalty exceptions Congress has added over the years. They work very differently, and mixing them up is an expensive mistake. I get emails about this fairly often, usually from someone who assumed a hardship withdrawal works like a loan — it doesn’t. Here’s how each one actually works in 2026. Covered in this Article: [Toggle](#) - [401(k) Loans: Borrowing From Yourself](#401k_Loans_Borrowing_From_Yourself) - [Hardship Withdrawals: The Seven Safe-Harbor Reasons](#Hardship_Withdrawals_The_Seven_Safe-Harbor_Reasons) - [SECURE 2.0 Also Added Separate Penalty Exceptions](#SECURE_20_Also_Added_Separate_Penalty_Exceptions) - [Loan or Hardship Withdrawal — Which Should You Choose?](#Loan_or_Hardship_Withdrawal_%E2%80%94_Which_Should_You_Choose) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027](#Looking_Ahead_2027) ## 401(k) Loans: Borrowing From Yourself A 401(k) loan isn’t a withdrawal at all — it’s a loan against your own balance, and the IRS doesn’t tax it or hit it with the 10% penalty as long as you repay it on schedule. The statutory limit is the lesser of **$50,000 or 50% of your vested account balance** (plans can allow a minimum loan down to $10,000 even if that’s more than half your balance). Your specific plan may set a lower cap or a higher minimum, so check with your plan administrator — the IRS limit is a ceiling, not a guarantee. You have up to **five years** to repay a general-purpose 401(k) loan, though plans can allow longer terms — often up to 10 to 15 years — if the loan is used to buy your primary residence. **Mark**, 42, borrows $30,000 from his 401(k) to cover a kitchen remodel. He pays it back over five years at 8.5% interest (prime plus roughly 1%, as most plans set it), and since he’s paying that interest back into his own account, he’s effectively paying himself rather than a bank. The tradeoff: that $30,000 wasn’t invested and growing in the market during those five years. ### The Job-Loss Trap Here’s where the old rules bite people. It used to be true that leaving your job triggered a 60-day repayment window on any outstanding 401(k) loan. **That changed with the Tax Cuts and Jobs Act back in 2018.** If you leave your job — voluntarily or not — with a loan balance outstanding, you now have until **your tax filing deadline, including extensions**, for the year you separated to repay it or roll the offset amount into an IRA. Leave your job in any month of 2026, and you’d generally have until April 2027 (or October 2027 with an extension) to handle it. Miss that deadline and the unpaid balance becomes a taxable distribution, plus a 10% penalty if you’re under 59½. Your plan’s specific rules can still set a shorter internal deadline for administrative purposes, so this is one to confirm directly with your plan rather than assume. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) and I’ll flag it if the IRS or Congress changes any of this again.* ## Hardship Withdrawals: The Seven Safe-Harbor Reasons If a loan isn’t available or doesn’t cover what you need, a hardship withdrawal is the other route — but it’s a real withdrawal, not a loan. It’s taxable as ordinary income, it can’t be paid back into the account, and it doesn’t reduce your balance temporarily — it reduces it permanently. The IRS recognizes seven safe-harbor reasons a plan can approve a hardship withdrawal for: - Unreimbursed medical expenses for you, your spouse, or your dependents - Costs directly related to buying your primary residence (not the ongoing mortgage payments) - Tuition and education fees for the next 12 months, for you or your dependents - Payments necessary to prevent eviction or foreclosure on your primary residence - Burial or funeral expenses - Certain expenses to repair damage to your primary residence after a federally declared disaster - Broader expenses and losses — including lost income — from a federally declared disaster, if your primary residence or main place of employment was located in the disaster area That last reason is easy to miss. It’s separate from (and wider than) the home-repair reason above it: it can cover a disaster’s financial fallout generally, not just the cost of fixing your house, and it also applies if your workplace — not just your home — was in the FEMA-designated area. Notice what’s still missing: **credit card balances, personal loans, and other general consumer debt aren’t on this list**, no matter how much financial stress they’re causing. I hear from readers fairly often who assumed “financial hardship” was a category on its own — it isn’t. If the real problem is credit card debt, [negotiating down your balances directly](https://savingtoinvest.com/negotiating-down-your-credit-card-debt/) or working through the [avalanche and snowball payoff methods](https://savingtoinvest.com/10-ways-to-get-out-of-debt-starting-now/) is usually both cheaper and faster than trying to route the problem through your 401(k). **Diane**, 51, needs $9,000 to avoid foreclosure after a job loss. She takes a hardship withdrawal instead of a loan, since she’s not currently employed and can’t repay a loan through payroll deductions anyway. She’ll owe income tax on the full $9,000, and — because she’s under 59½ and this particular reason isn’t a penalty exception — the 10% penalty too, unless she qualifies under a separate exception. ### What Actually Changed Under SECURE 2.0 Two things about hardship withdrawals genuinely got easier, and both are worth knowing if the version of this you remember is from a few years back. **Self-certification.** Since 2023, most plans can rely on your written certification that you have a qualifying need and that the amount requested doesn’t exceed what’s necessary — without you submitting medical bills, eviction notices, or contractor estimates. Your specific plan can still ask for documentation if it wants to, so check first, but the IRS no longer requires it. Even when your plan doesn’t ask upfront, hang onto your own records (bills, notices, estimates) for a few years anyway — self-certification shifts the paperwork burden to you if the IRS or your plan ever questions the withdrawal later, not the other way around. **No more six-month contribution freeze.** For years, taking a hardship withdrawal meant you couldn’t contribute to your 401(k) for six months afterward. That requirement was eliminated for plan years starting in 2019. If your plan still imposes a freeze, that’s a plan design choice now, not a legal requirement. ## SECURE 2.0 Also Added Separate Penalty Exceptions Beyond the traditional hardship withdrawal, SECURE 2.0 created several new ways to pull money out penalty-free (though still taxable) since 2024 — an emergency personal expense withdrawal (up to $1,000 a year), a domestic abuse victim exception (up to $10,000 or 50% of your balance), a terminal illness exception, and disaster relief distributions. These aren’t “hardship withdrawals” in the technical sense — they’re separate penalty exceptions under the tax code, and several of them let you repay the money within three years, which a hardship withdrawal never allows. I cover the full list of exceptions, including these, in my [401(k) and IRA early withdrawal penalty guide](https://savingtoinvest.com/how-to-withdraw-money-early-from-your-401k-or-ira-without-paying-a-penalty/). ## Loan or Hardship Withdrawal — Which Should You Choose? If you’re still employed and can afford the payroll deduction, a loan is almost always the better move: no tax hit, no permanent dent in your balance, and you’re paying interest to yourself instead of a lender. A hardship withdrawal makes more sense if you’re not currently employed, you don’t expect to be able to repay a loan, or your plan doesn’t offer loans at all. Some plans only allow one or the other, so check your specific plan’s summary plan description before assuming you have both options. ## Common Issues to Watch Out For I hear about the same handful of mistakes with this fairly often. **Assuming credit card debt or other general debt qualifies for a hardship withdrawal.** It doesn’t — the IRS’s seven safe-harbor reasons are narrow (medical bills, home purchase costs, tuition, eviction/foreclosure prevention, funeral expenses, home-repair costs, and broader disaster-related expenses or lost income), and paying down credit cards or personal loans isn’t one of them, even if the debt is causing real financial stress. Some plans get creative with a “general financial hardship” category of their own, but that’s a plan-specific policy, not an IRS-guaranteed right — confirm with your specific plan before assuming this route is open to you. **Assuming a hardship withdrawal can be repaid.** It can’t — once it’s out, it’s out for good, unlike a loan or the newer SECURE 2.0 exceptions that do allow repayment. **Forgetting the loan becomes taxable if you leave your job.** The tax-filing-deadline extension helps, but I still hear from people who let the deadline pass without realizing it, turning a loan into a taxable distribution plus a penalty. **Not checking whether your plan requires documentation anyway.** Self-certification is now allowed under the IRS rules, but your specific plan can still ask for proof — don’t assume the paperwork-free version applies everywhere. **Missing the disaster-related hardship reason because it’s not labeled “disaster.”** The broader disaster-expenses-and-lost-income reason applies even if your home wasn’t damaged, as long as your residence or workplace was in the declared disaster area — I’ve heard from readers who assumed the disaster reason only covered physical home repairs. **Not accounting for the tax bill.** A hardship withdrawal has no withholding requirement the way some distributions do, so people are sometimes surprised by the tax bill the following April. ## Looking Ahead: 2027 The loan limits here ($50,000 / 50% of vested balance) are fixed statutory numbers, not inflation-indexed, so don’t expect them to move for 2027 without a new law. Plan sponsors do have until **December 31, 2026** to formally adopt several of these SECURE 2.0 provisions — self-certification, the emergency and domestic abuse distributions — into their plan documents, even though most plans have operated as if they’re already in effect. I’ll update this page if the IRS issues further guidance narrowing or expanding any of these provisions, which has happened more than once since SECURE 2.0 passed. I’ve also written more about [401(k) to IRA Rollovers — Direct vs. 60-Day Rules (and Avoiding the 20% Withholding Trap)](https://savingtoinvest.com/rollover-old-or-multiple-401ks-into-an-ira/), [2026-2027 401(k), IRA, and Roth IRA Contribution and Income Limits](https://savingtoinvest.com/401k-ira-and-roth-ira-contribution-and-income-limits/), and [401(k), 403(b) & TSP Contribution Limits](https://savingtoinvest.com/taking-advantage-of-new-401k/). Frequently Asked Questions QWhat's the difference between a 401(k) loan and a hardship withdrawal? AA loan is money you borrow from your own balance and pay back with interest, with no tax or penalty as long as you repay on schedule. A hardship withdrawal is a permanent, taxable distribution that can't be repaid, and may carry a 10% penalty if you're under 59½. QHow much can I borrow from my 401(k)? AUp to the lesser of $50,000 or 50% of your vested account balance, though your specific plan may set a lower limit. Plans can allow a minimum loan of up to $10,000 even if that exceeds 50% of your balance. QWhat happens to my 401(k) loan if I lose or quit my job? AYou have until your tax filing deadline, including extensions, for the year you separated to repay the outstanding balance or roll it into an IRA. This replaced the old 60-day rule under the Tax Cuts and Jobs Act. QCan I take a 401(k) hardship withdrawal to pay off credit card debt? ANot under the IRS's standard seven safe-harbor reasons - credit card and other general consumer debt isn't a qualifying hardship reason, even though the financial stress is real. Some plans allow a broader 'general financial hardship' category at their own discretion, but that's plan-specific, not an IRS requirement, so check your plan's summary plan description before assuming it's available. QDo I still need to submit documents for a hardship withdrawal? ANot necessarily. Since 2023, most plans can rely on your self-certification of the need and amount without supporting documentation, though your specific plan may still request it. Keep your own records anyway in case of a later audit. QIs there still a six-month freeze on contributions after a hardship withdrawal? ANo. That requirement was eliminated for plan years starting in 2019. If your plan still imposes one, it's a plan choice, not an IRS rule. QAre hardship withdrawals subject to the 10% early withdrawal penalty? AYes, unless you separately qualify for one of the penalty exceptions under the tax code (disability, certain medical expenses, SECURE 2.0's newer exceptions, etc.). The hardship reason itself doesn't automatically waive the penalty. QDoes a disaster have to damage my home for me to qualify for a disaster-related hardship withdrawal? ANo. The IRS's seventh safe-harbor reason covers broader expenses and losses, including lost income, from a federally declared disaster if your principal residence or main place of employment was in the FEMA-designated area - it's not limited to physical home-repair costs. QCan I take a 401(k) loan and a hardship withdrawal in the same year? AGenerally yes, if your plan offers both, though most hardship withdrawal rules require you to have already taken any available loan from the plan before the withdrawal is approved. **Categories:** Taxes and Retirement **Tags:** 401K, IRA, IRS, loan, Withdrawal --- ### [Choices for Your 401(k) When You Leave or Change Jobs: Cash Out, Roll Over, or Let Auto-Portability Handle It](https://savingtoinvest.com/choices-for-your-401k-retirement-plan-when-you-leave-or-change-your-job-including-an-ira-rollover/) **Published:** January 29, 2012 **Author:** Andy **Content:** ### Key Takeaways - Leaving a job means four 401(k) options: cash out, leave it, move it, or roll to an IRA. - SECURE 2.0 raised the automatic cash-out threshold from $5,000 to $7,000 for forced distributions. - Auto-portability can move a forced-out balance into your new employer's plan automatically - but it excludes Roth money. - DOL's 2026 agenda targets September 2026 to finalize the auto-portability rule; plans must adopt it by December 31. One of the biggest hassles when changing jobs used to be around what to do with your old 401(k). It sat wherever you left it until you got around to dealing with it — or, if the balance was small enough, your former employer quietly cashed it out and mailed you a check minus withholding. That default is now changing. Under SECURE 2.0, small-balance accounts can now follow you automatically to your new employer’s plan instead of landing in your mailbox or a low-yield forced IRA. Whether that helps you or not depends on the choice you make, so here’s an updated look at your four options and where auto-portability fits in. Covered in this Article: [Toggle](#) - [Your Options at a Glance](#Your_Options_at_a_Glance) - [Cash Out](#Cash_Out) - [Leave Your Savings With Your Former Employer — With a Catch](#Leave_Your_Savings_With_Your_Former_Employer_%E2%80%94_With_a_Catch) - [Move the Funds to Your New Employer’s Plan](#Move_the_Funds_to_Your_New_Employers_Plan) - [Roll Your Funds Into a Self-Directed Rollover IRA](#Roll_Your_Funds_Into_a_Self-Directed_Rollover_IRA) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) ## Your Options at a Glance OptionKeeps Tax-Deferred StatusInvestment ChoiceBest ForCash outNoN/ARarely — only true financial emergenciesLeave with old employerYesLimited to old plan’s menuUndecided, still deciding next stepMove to new employerYesLimited to new plan’s menuWant simplicity, one accountRoll to IRAYesWidest — stocks, bonds, funds, etc.Most people changing or losing a job ## Cash Out Taking the money and running is the option that looks best on the day you need cash and worst on every day after. If you’re under 59½, you’ll owe a 10% [early withdrawal penalty](https://savingtoinvest.com/how-to-withdraw-money-early-from-your-401k-or-ira-without-paying-a-penalty/) on top of ordinary income tax on the full withdrawal. Between mandatory 20% federal withholding and your actual tax bracket, it’s common to lose 30% or more of the balance to taxes and penalties combined. Beyond the immediate hit, cashing out permanently erases the compounding those dollars would have earned. A $20,000 balance cashed out today isn’t just $20,000 lost — it’s whatever that money would have grown to over the next 20 or 30 years. Unless you’re facing a genuine financial hardship, this is the option to avoid. ## Leave Your Savings With Your Former Employer — With a Catch Leaving your [401(k)](https://savingtoinvest.com/maximum-401k-contribution-limits-up-to-54000-in-2017-and-likely-higher-in-2018/) in your old employer’s plan can be a reasonable holding pattern while you decide what to do next, especially if you like the plan’s investment lineup or low fees. But there are real downsides: you can’t contribute more money to the account, you may face limited investment choices, and your former employer can change the plan’s terms, fees, or recordkeeper without your input. Here’s the part that’s genuinely new for 2026: if your balance is small, you may not have the option to simply leave it alone. SECURE 2.0 raised the automatic cash-out threshold from $5,000 to **$7,000**. If your vested balance is at or below that amount and you don’t actively choose what to do with it, your former employer’s plan can force the money out on your behalf — typically into a default rollover IRA — once you receive the required notice. ### What’s New: Auto-Portability This is where the [SECURE 2.0](https://savingtoinvest.com/navigating-the-new-rules-how-the-secure-2-0-act-impacts-your-retirement-catch-up-contributions/) auto-portability provision comes in, and it’s the biggest structural change to job-change rollovers in years. Instead of your small forced-out balance sitting in a low-yield default IRA indefinitely, auto-portability lets retirement plan service providers automatically locate your new employer’s plan and transfer the balance into it — without you having to fill out paperwork or even remember to act. Here’s how it works in practice: when you leave a job with a balance under the $7,000 threshold and don’t make an election, your funds move into a Safe Harbor IRA. A national auto-portability network (built around record-matching between recordkeepers) then checks whether you’ve started a new job with a plan that participates in the network. If there’s a match, your balance moves automatically into your new employer’s active plan — reuniting your retirement savings without you lifting a finger. Two important caveats. First, this only applies to traditional pre-tax balances — **Roth 401(k) money is excluded** from auto-portability transfers under the current rules. Second, it depends on your former and new employer’s plan both participating in a compatible auto-portability network, which not all recordkeepers have adopted yet. Under IRS Notice 2024-2, most plans have until **December 31, 2026** to formally amend their documents to reflect SECURE 2.0 provisions, including auto-portability, so adoption is still rolling out across the industry. The practical upshot: if you have a small balance and do nothing, your money is now less likely to get stranded or gradually eaten by fees in an old default IRA — but “less likely” isn’t “guaranteed,” and you’re still better off making an active choice than relying on the system to sort it out for you. ## Move the Funds to Your New Employer’s Plan If your new employer’s [401k plan](https://savingtoinvest.com/taking-advantage-of-new-401k/) accepts incoming rollovers, moving your balance there keeps everything in one place and lets you keep contributing on a tax-deferred basis while accessing whatever [matching](https://savingtoinvest.com/6-things-you-should-be-doing-with-your-401k-and-individual-retirement-accounts) program your new employer offers. The tradeoff is the same as it’s always been: you’re limited to whatever investment menu your new plan offers, and there may be differences in fees, vesting rules for employer contributions, or loan provisions compared to your old plan. I went through this personally when I moved from a Fidelity-administered 401k to a plan with a much narrower fund lineup and higher expense ratios — the transfer itself was simple, but I wished I’d checked the new plan’s fee disclosure first. If your balance qualifies for auto-portability (small, pre-tax, and both plans participate in the network), this may now happen automatically. If it doesn’t qualify — larger balance, Roth money, or a plan outside the network — you’ll need to initiate the transfer yourself through your new plan’s rollover process. ## Roll Your Funds Into a Self-Directed Rollover IRA For most people changing jobs, rolling into an [IRA](https://savingtoinvest.com/traditional-ira-versus-roth-ira-contribution-and-phase-out-income-limits/) remains the option with the most control. A rollover IRA keeps your savings tax-deferred while opening up a much wider universe of investments — individual stocks, bonds, low-cost index funds, and more — instead of whatever menu your employer’s plan happens to offer. If your old plan is with a major provider like Vanguard or Fidelity, a direct rollover to an IRA at the same or a different institution is typically fast. I did this for my wife after she left a job, and the whole process — including keeping the same fund lineup in her new self-directed account — took less than 10 minutes online. This is also the cleanest option if you’ve changed jobs more than once and have [multiple old 401k accounts](https://savingtoinvest.com/rollover-old-or-multiple-401ks-into-an-ira/) scattered across former employers — consolidating them into a single rollover IRA makes them far easier to track and manage. One thing to watch: if you have an outstanding 401k loan when you leave your job, that loan balance generally must be repaid (or it’s treated as a taxable distribution) regardless of which of these four options you choose. And if you’re not confident navigating investment selection on your own, working with a fee-only advisor for the initial rollover can be worth the cost. *[Subscribe here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get notified when new 401k rollover and portability rules take effect.* **In Summary:** For most people leaving or changing jobs, rolling over to an IRA still offers the best combination of control and investment choice. If your balance is small, keep an eye on whether auto-portability applies to you — it’s a meaningful safety net, but it’s not yet universal, and it doesn’t cover Roth balances. Cashing out remains the worst option outside of genuine financial hardship. ## Looking Ahead: 2027 Outlook Auto-portability adoption is still ramping up, not fully rolled out. What happens next depends on how many recordkeepers join the national matching network the DOL and industry groups have been building — the more plans that participate, the more small-balance job-changers this will actually help. Watch for the December 31, 2026 plan amendment deadline: expect a wave of plan sponsor announcements in late 2026 as recordkeepers finalize their auto-portability integrations ahead of that date. On the regulatory side, the Department of Labor’s own 2026 regulatory agenda now lists a target date of **September 2026** — this month — for finalizing its rule on automatic portability transaction exemptions, following the proposed rule it issued back in January 2024. Agency target dates aren’t binding and regularly slip past their published timeline, so I wouldn’t be surprised if this pushes into Q4 or later, but it’s the most concrete signal yet that a final rule is close. There’s also ongoing industry discussion about eventually extending some version of portability to Roth balances, though nothing is finalized. For now, the safest approach if you’re changing jobs is the same as it’s always been: don’t rely on the system to make the right call for you. Actively choose one of the four options above based on your own balance size, investment preferences, and timeline — treat auto-portability as a backstop, not a plan. I’ll update this page once the DOL’s final rule lands and as 2027 plan-amendment activity plays out. Frequently Asked Questions QWhat happens to my 401k if I don't do anything after leaving my job? AIt depends on your balance. If it's above $7,000, your money generally stays in your former employer's plan until you act. If it's $7,000 or below, your former plan can force a cash-out, typically rolling it into a default IRA (a Safe Harbor IRA) - and if both your old and new employer's plans participate in the auto-portability network, that balance may then automatically transfer into your new employer's active plan. QWhat is 401k auto-portability? AAuto-portability is a SECURE 2.0 provision that allows service providers to automatically move a small, forced-out 401k balance from a default Safe Harbor IRA into your new employer's active retirement plan when a match is found between recordkeepers - without requiring you to submit paperwork. QDoes auto-portability apply to Roth 401k balances? ANo. Current auto-portability rules exclude Roth 401(k) money - only traditional, pre-tax balances are eligible for automatic transfer. QWhat is the automatic cash-out threshold in 2026? ASECURE 2.0 raised the threshold from $5,000 to $7,000. Vested balances at or below $7,000 can be force-distributed by a former employer's plan if the employee doesn't make an active election. QIs cashing out my 401k ever a good idea when I leave a job? ARarely. If you're under 59½, you'll typically owe a 10% early withdrawal penalty plus ordinary income tax, often totaling 30% or more of the balance. It's generally only worth considering in cases of genuine financial hardship. QBy when do employers have to adopt these SECURE 2.0 changes? AUnder IRS Notice 2024-2, most retirement plans have until December 31, 2026 to formally amend their plan documents to reflect SECURE 2.0 provisions, including auto-portability - so not all plans have implemented it yet. QHas the Department of Labor finalized its auto-portability rule yet? ANot yet, as of September 2026. The DOL's own regulatory agenda lists a target date of September 2026 for finalizing the rule, following a proposed rule issued in January 2024, but agency target dates often slip and aren't legally binding. **Categories:** Taxes and Retirement **Tags:** 401K, employer, IRA, Rollver, savings --- ### [2026–2027 One Big Beautiful Bill Act (OBBBA): What Every Tax Filer Needs to Know](https://savingtoinvest.com/reconciling-trumps-big-beautiful-bill-bbb/) **Published:** June 19, 2025 **Author:** Andy **Content:** ### Key Takeaways - The One Big Beautiful Bill Act (OBBBA) passed in 2025 permanently extends the 2017 TCJA tax rates and adds new above-the-line deductions for tips, overtime, auto loan interest, and seniors - all claimable on the new Schedule 1-A. - If you earn tips, you can deduct up to $25,000 in qualified tips from federal income tax for 2025-2028 (income limit: $150,000 single / $300,000 joint). - Overtime workers can deduct the 'premium' portion of overtime pay - up to $12,500 ($25,000 joint) - for the same period. - Seniors 65+ get a new $6,000 bonus deduction ($12,000 joint) on top of the standard deduction; phases out at $75,000/$150,000 MAGI. - The OBBBA cuts the Child Tax Credit to $2,200/child (up from $2,000), adjusts for inflation going forward, and makes that amount permanent. - Energy tax credits from the IRA (solar, EV, home efficiency) are being phased out or eliminated - most residential credits expire December 31, 2025. - All new individual deductions are temporary: 2025 through 2028. Use them now and plan for 2029 when they expire unless Congress acts. If you’ve filed taxes in the last few years, the One Big Beautiful Bill Act (OBBBA) has already shown up on your 2025 return — and will do so for every return through 2028. In this post I will walk you through exactly what changed, what it means for your future refunds, and what to watch for over the coming years. The short version: millions of Americans in service jobs, overtime roles, or retirement will pay less federal income tax starting with the 2025 tax year (filed in 2026). If any of those descriptions fit you, keep reading — this is potentially a lot more real money in your bank account. Covered in this Article: [Toggle](#) - [What Is the One Big Beautiful Bill Act?](#What_Is_the_One_Big_Beautiful_Bill_Act) - [How Does This Affect Your 2026 Tax Return?](#How_Does_This_Affect_Your_2026_Tax_Return) - [The New OBBBA Deductions at a Glance](#The_New_OBBBA_Deductions_at_a_Glance) - [No Tax on Tips (2025–2028)](#No_Tax_on_Tips_2025%E2%80%932028) - [No Tax on Overtime (2025–2028)](#No_Tax_on_Overtime_2025%E2%80%932028) - [Auto Loan Interest Deduction (2025–2028)](#Auto_Loan_Interest_Deduction_2025%E2%80%932028) - [Senior Bonus Deduction — $6,000 for Ages 65+ (2025–2028)](#Senior_Bonus_Deduction_%E2%80%94_6000_for_Ages_65_2025%E2%80%932028) - [SALT Deduction Cap — Now $40,400 (If You Itemize)](#SALT_Deduction_Cap_%E2%80%94_Now_40400_If_You_Itemize) - [Charitable Deduction for Non-Itemizers — $1,000 / $2,000](#Charitable_Deduction_for_Non-Itemizers_%E2%80%94_1000_2000) - [Child Tax Credit — Permanent at $2,200/Child](#Child_Tax_Credit_%E2%80%94_Permanent_at_2200Child) - [What’s Ending: Energy and EV Credits](#Whats_Ending_Energy_and_EV_Credits) - [What the OBBBA Means for Your 2027 Return (Income Earned in 2026)](#What_the_OBBBA_Means_for_Your_2027_Return_Income_Earned_in_2026) - [Looking Ahead: 2028 Sunset and What to Watch](#Looking_Ahead_2028_Sunset_and_What_to_Watch) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## What Is the One Big Beautiful Bill Act? The One Big Beautiful Bill Act (OBBBA) is a sweeping tax and spending law signed in 2025. Its biggest job was preventing a massive tax increase that would have hit virtually every American when the 2017 Tax Cuts and Jobs Act (TCJA) provisions expired at the end of 2025. The OBBBA made those rates permanent — so your brackets, standard deduction, and other TCJA benefits aren’t going anywhere. On top of that, the OBBBA added a stack of new, targeted tax breaks for specific groups: tipped workers, overtime workers, new car buyers, seniors, and families with children. See details on each of these tax breaks in the sections below with links to defined eligibility rules and payment thresholds. All four new individual deductions live on a brand-new IRS form: **[Schedule 1-A](https://savingtoinvest.com/what-is-the-new-schedule-1-a-form-for-tax-filing/)**. You attach it to your Form 1040. ## How Does This Affect Your 2026 Tax Return? Here’s the practical calendar: the OBBBA deductions apply to income *earned* in 2025, which you report on your **2025 tax return filed in early 2026**. For income earned in 2026 (tax return filed in early 2027), the same rules apply — plus some paperwork gets cleaner because employers now have standardized W-2 reporting codes for tips and overtime. So if you’re filing your 2025 return right now and you earned tips, overtime, or bought a new American-made car — you likely have deductions you haven’t claimed yet. ## The New OBBBA Deductions at a Glance DeductionMax AmountIncome Phase-Out StartsExpiresNo Tax on Tips$25,000/person$150,000 (single) / $300,000 (joint)2028No Tax on Overtime$12,500 (single) / $25,000 (joint)$150,000 (single) / $300,000 (joint)2028Auto Loan Interest$10,000/year$100,000 (single) / $200,000 (joint)2028Senior Bonus Deduction$6,000 (single) / $12,000 (joint)$75,000 (single) / $150,000 (joint)2028 All four are **above-the-line deductions** — meaning you claim them whether you itemize or take the standard deduction. That’s a big deal for the majority of Americans who don’t itemize. ## No Tax on Tips (2025–2028) If you’re a server, bartender, hairstylist, rideshare driver, hotel concierge, or work in any of the [70+ IRS-recognized tipped occupations](https://www.irs.gov/newsroom/treasury-irs-issue-final-regulations-listing-occupations-where-workers-customarily-and-regularly-receive-tips-under-the-one-big-beautiful-bill), this is one of the biggest tax breaks you’ve ever seen. The IRS finalized the occupations list in April 2026 (effective June 12, 2026), adding three occupations that weren’t on the preliminary list: visual artists, floral designers, and gas pump attendants. You can deduct up to **$25,000 per year** in qualified tip income from your federal taxable income. The catch: tips must be voluntary (no automatic gratuities), properly reported on your W-2 or 1099, and your MAGI must be under $150,000 (single) or $300,000 (joint). A server earning $22,000 in tips in the 22% bracket saves **$4,840 in federal income tax**. That’s not a small number. **Starting in 2026**, employers must report tips separately in Box 12 of your W-2 using code “TP,” making it easier to claim. For 2025 returns (filed in 2026), most tax software handles the deduction automatically. **→ Full details, eligibility rules, and examples: [No Tax on Tips 2026 — Your Complete Guide](https://savingtoinvest.com/no-tax-on-tips-2026-your-complete-guide-to-saving-thousands-with-real-examples/)** ## No Tax on Overtime (2025–2028) This one targets hourly and non-exempt workers who put in extra hours under the Fair Labor Standards Act (FLSA). You can deduct the **premium portion** of your overtime pay — the “half” in “time-and-a-half.” Maximum deduction: **$12,500 for single filers, $25,000 for joint filers.** Same $150,000/$300,000 MAGI phase-out as tips. Important: salaried employees who are FLSA-exempt generally don’t qualify, because they don’t receive FLSA-mandated overtime in the first place. A nurse earning $15,000 in overtime premium pay at the 22% rate saves **$3,300 in federal income tax**. You’ll report this on Schedule 1-A using your W-2 overtime figures. **→ Full eligibility, examples, and how to claim: [No Tax on Overtime — Who Qualifies and How to Calculate Your Deduction](https://savingtoinvest.com/no-tax-on-overtime-who-qualifies-how-to-calculate-your-deduction-with-e/)** ## Auto Loan Interest Deduction (2025–2028) If you financed a **new, American-assembled vehicle** for personal use starting January 1, 2025, you can deduct up to **$10,000 per year** in loan interest from your federal taxable income. The VIN on your car must confirm U.S. final assembly — your lender will provide an annual interest statement. Income phase-out starts at $100,000 (single) / $200,000 (joint) and vanishes at $150,000/$250,000. On a $40,000 car loan at 7% APR, you might pay around $2,700 in interest in year one — worth about $600 in tax savings at the 22% bracket. The deduction stacks across years through 2028. **→ Full rules, VIN requirements, and examples: [Auto Loan Interest Tax Deduction 2025–2028](https://savingtoinvest.com/understanding-the-auto-interest-tax-deduction-for-new-cars-between-2025-to-2028/)** ## Senior Bonus Deduction — $6,000 for Ages 65+ (2025–2028) If you’re 65 or older, the OBBBA adds a **$6,000 deduction on top of your standard deduction** (or itemized deductions). Both spouses over 65 filing jointly can claim $12,000 combined. Phase-out starts at $75,000 MAGI (single) / $150,000 (joint). You lose $0.06 of deduction per dollar above the threshold. The full deduction disappears at $175,000 (single) / $250,000 (joint). In the 22% bracket, that $6,000 deduction is worth **$1,320 in direct tax savings** — enough to cover a few months of Medicare Part B premiums. **→ Eligibility details, bracket-by-bracket savings, and strategies: [$6,000 Senior Deduction — Do You Qualify?](https://savingtoinvest.com/the-6000-senior-deduction-see-if-you-qualify/)** ## SALT Deduction Cap — Now $40,400 (If You Itemize) Unlike the four deductions above, this one only helps if you itemize on Schedule A instead of taking the standard deduction. The OBBBA raised the cap on the State and Local Tax (SALT) deduction from $10,000 to $40,400 for 2026 — a four-fold increase that mainly benefits homeowners in high-property-tax states like New York, New Jersey, California, and Connecticut. The higher cap phases out once your MAGI passes $505,000, dropping back to the original $10,000 floor around $606,300 — and it’s temporary, reverting to $10,000 in 2030. A separate, permanent OBBBA rule also caps the tax value of itemized deductions (SALT included) at 35 cents per dollar for filers in the 37% bracket. **→ Full breakdown, phase-out math, and worked examples: [New 4x SALT Cap — How Much Will You Actually Save?](https://savingtoinvest.com/new-4x-salt-cap-how-much-will-you-actually-save/)** ## Charitable Deduction for Non-Itemizers — $1,000 / $2,000 Starting with 2026 returns, you can deduct cash donations to qualified 501(c)(3) charities even if you take the standard deduction instead of itemizing. The cap is $1,000 for single filers and $2,000 for married couples filing jointly. This is an above-the-line deduction, permanent (no expiration), and covers cash gifts only — donor-advised funds and private foundations don’t qualify. One catch: Congress didn’t index the $1,000/$2,000 caps for inflation, so 2026 is the year this deduction is worth the most in real terms. If you’ve seen a smaller $300 (single) / $600 (joint) figure floating around, that was from an earlier draft version of the bill — the law as actually enacted is the larger, permanent $1,000/$2,000 version above. ## Child Tax Credit — Permanent at $2,200/Child The OBBBA permanently raised the Child Tax Credit from $2,000 to **$2,200 per qualifying child** (under age 17 with a Social Security number), and indexes it for inflation going forward. The refundable portion (Additional Child Tax Credit) rises to $1,700. Phase-out: the credit reduces by 5% of AGI above $200,000 (single) / $400,000 (joint). Both the child and the taxpayer claiming the credit must have Social Security numbers. **→ Full eligibility rules and income limits: [Child Tax Credit 2026 — OBBBA Changes Explained](https://savingtoinvest.com/child-and-kiddie-tax-credit-and-income-thresholds/)** ## What’s Ending: Energy and EV Credits The OBBBA accelerated the death of most clean energy tax credits from the Inflation Reduction Act: - **Residential solar, geothermal, efficiency credits** — expired December 31, 2025 - **Energy Efficient Commercial Buildings deduction** — expired June 30, 2026 (projects had to be placed in service by that date) - **EV tax credit (new/used/commercial)** — repealed after September 30, 2025 If you were counting on any of these, talk to a tax professional now. Some transitional rules exist for projects already under contract. **→ Full business and energy tax changes: [What the OBBBA Means for Business and Energy Tax Credits](https://savingtoinvest.com/tax-changes-what-the-one-big-beautiful-bill-act-means-for-energy-and-business/)** ## What the OBBBA Means for Your 2027 Return (Income Earned in 2026) The same tip, overtime, auto loan, and senior deductions all apply to 2026 income — filed in 2027. A few things get easier: - Employers now use W-2 Box 12 code “TP” for tips and Box 14b for Treasury Tipped Occupation Codes, so your deduction documentation improves. - You can adjust your **W-4 withholding** to have less tax withheld from tips and overtime throughout the year, putting money in your pocket each paycheck instead of waiting for a refund. - The [IRS refund schedule for 2027](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) will reflect these deductions — expect average refunds to remain elevated compared to pre-OBBBA years. ## Looking Ahead: 2028 Sunset and What to Watch All four new OBBBA deductions (tips, overtime, auto loan, senior bonus) expire after the **2028 tax year**. They’re not permanent. Unless Congress acts before then, 2028 will be the last year to claim them. I’ll be watching closely in 2027 and 2028 for any extension proposals. The political calculus changes with each election — these provisions are popular with working-class voters, so extension is plausible, but not guaranteed. What I’m watching: income threshold adjustments for inflation and whether Congress bundles an extension into a future reconciliation bill. One item is now settled — the IRS issued final regulations on the tipped occupations list in April 2026 (effective June 12, 2026), so the eligibility rules for the tips deduction are locked in for your 2026 return. I’ll update this page as things develop — [subscribe to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) when we post updates. ## Common Issues to Watch Out For One mistake I see a lot: confusing service charges with tips. A 20% automatically added gratuity on a large party does **not** qualify for the no-tax-on-tips deduction. Only **voluntary tips do.** Another: assuming all overtime workers qualify. **Salaried exempt** employees — many managers and professionals — don’t receive FLSA overtime and therefore don’t qualify for the overtime deduction. On the senior deduction, married couples who file separately are completely locked out. If you’re near the edge of that $150,000 joint phase-out threshold, the math on filing jointly vs. separately can shift significantly. Finally: these are **federal deductions** administered by the IRS. Your state may or may not conform. Check with a tax pro if your state income tax situation is complex. Frequently Asked Questions QWhat is the One Big Beautiful Bill Act (OBBBA) and how does it affect my 2026 taxes? AThe OBBBA is a 2025 tax law that permanently extends lower tax rates from 2017, raises the Child Tax Credit to $2,200/child, and adds four new above-the-line deductions: tips (up to $25,000), overtime premium pay (up to $12,500 single), auto loan interest (up to $10,000), and a senior bonus ($6,000 for ages 65+). All apply to 2025 income you report on your 2026 tax return. QDo I have to itemize deductions to claim the OBBBA tips or overtime deductions? ANo. All four OBBBA deductions - tips, overtime, auto loan interest, and senior bonus - are 'above-the-line' deductions. You claim them on the new Schedule 1-A regardless of whether you take the standard deduction or itemize. QWhat income limit applies to the OBBBA tip and overtime deductions? ABoth phase out starting at $150,000 MAGI for single filers and $300,000 for married filing jointly. For every $1,000 over the threshold, the deduction is reduced by $100. Married couples must file jointly to claim these deductions. QAre the OBBBA deductions permanent? ANo. The tips, overtime, auto loan, and senior bonus deductions are all temporary - they apply to tax years 2025 through 2028. The TCJA tax rates and the Child Tax Credit increase at $2,200 are permanent. Watch for potential Congressional extension closer to the 2028 sunset. QWhat happened to solar and EV tax credits under the OBBBA? AMost were eliminated or accelerated. Residential solar and home efficiency credits expired December 31, 2025. The EV tax credit (new, used, and commercial) was repealed for vehicles placed in service after September 30, 2025. QHow do I claim OBBBA deductions on my tax return? AUse the new Schedule 1-A, which attaches to Form 1040. Most major tax software (TurboTax, H&R Block, TaxAct) has already built this in. Keep your W-2s (which will show tip and overtime figures), loan interest statements, and VIN documentation for the auto deduction. QWill the OBBBA deductions show up on my 2027 tax return for 2026 income? AYes. The same four deductions apply to 2026 income (filed in 2027), and employer W-2 reporting gets more standardized that year - tips will appear in Box 12 with code 'TP,' making documentation easier. **Categories:** Taxes and Retirement --- ### [SSDI Wait Times in 2026: Faster Decisions, But a Growing Hearing Backlog Expected in 2027](https://savingtoinvest.com/ssdi-wait-times-2026-2/) **Published:** August 19, 2026 **Author:** Andy **Content:** ### Key Takeaways - Initial SSDI decisions averaged 186 days in July 2026, 34 days faster than July 2025, per SSA's own data. - Reconsideration appeals averaged 214 days in July 2026, down from 240 days a year earlier. - Hearing waits fell to 275 days in July 2026, but about 362,000 cases are still pending nationwide. - All three stages ticked up slightly from May to July 2026, even though each remains faster than a year ago. If you’re waiting on an SSDI decision in 2026, here’s the honest picture: the earlier stages of the process have genuinely gotten faster than they were a year ago, but if your case ends up in front of an administrative law judge, you’re still competing with more people than usual for the same number of hearing slots. Here’s what SSA’s own numbers actually show at each stage, using the agency’s most recent published data as of this writing. Covered in this Article: [Toggle](#) - [The Three Stages of an SSDI Claim](#The_Three_Stages_of_an_SSDI_Claim) - [Initial Decisions: Still Faster Than a Year Ago](#Initial_Decisions_Still_Faster_Than_a_Year_Ago) - [Reconsideration: Also Meaningfully Faster, Same Pattern](#Reconsideration_Also_Meaningfully_Faster_Same_Pattern) - [Hearings: Faster on Average, But the Backlog Isn’t Shrinking](#Hearings_Faster_on_Average_But_the_Backlog_Isnt_Shrinking) - [Why It’s Getting Faster: AI Tools in the Mix](#Why_Its_Getting_Faster_AI_Tools_in_the_Mix) - [What This Means If You’re Applying or Appealing Now](#What_This_Means_If_Youre_Applying_or_Appealing_Now) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: What to Watch for the Rest of 2026](#Looking_Ahead_What_to_Watch_for_the_Rest_of_2026) ## The Three Stages of an SSDI Claim Every SSDI application can pass through up to three stages: an **initial decision** by your state’s Disability Determination Services, a **reconsideration** if you’re denied and appeal, and a **hearing** before an administrative law judge if reconsideration is also denied. Each stage has its own separate wait time and its own backlog — none of which is affected by the annual [Social Security COLA](https://savingtoinvest.com/social-security-tax-and-cost-of-living-adjustment-cola/), which only changes your benefit amount once you’re approved, not how fast your claim moves. ## Initial Decisions: Still Faster Than a Year Ago SSA’s performance dashboard shows initial disability decisions averaging 186 days in July 2026, down from 220 days in July 2025 — a 34-day improvement. The number of pending initial claims also dropped, from about 935,000 in July 2025 to roughly 885,000 in July 2026. That 186-day figure is a couple of days slower than the 184-day mark SSA reported for May 2026, so the earlier trend of month-over-month acceleration has leveled off rather than continuing to improve. It’s still meaningfully faster than 2025, just not accelerating further right now. ## Reconsideration: Also Meaningfully Faster, Same Pattern If your initial claim is denied and you request reconsideration, that stage improved too: 214 days average in July 2026, down from 240 days in July 2025. Pending reconsideration cases fell from about 376,000 to roughly 310,000 over the same period. Like the initial-decision stage, this is a slight uptick from the 208-day figure SSA reported for May 2026 — the same pattern of “faster than last year, but ticking up slightly month to month.” ## Hearings: Faster on Average, But the Backlog Isn’t Shrinking This is where the picture gets more complicated. The average hearing wait improved to 275 days in July 2026 — just over 9 months — down from 285 days in July 2025. SSA’s stated internal goal is 270 days, so the agency is close to hitting its own target on average, though it slipped slightly from the 267-day figure reported for May 2026. The number of people *currently waiting* for a hearing has essentially plateaued at a high level: about 362,000 pending cases in July 2026, compared to roughly 361,000 in May 2026 and about 278,000 a year earlier in July 2025. The sharp climb from spring 2025 through spring 2026 has stopped for now, but the backlog hasn’t come down — it’s holding near its highest point in years. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) and I’ll update this page as SSA publishes new monthly performance data.* ## Why It’s Getting Faster: AI Tools in the Mix SSA points to new technology as a driver of the initial and reconsideration improvements. The **HeaRT** system (Hearing Recording and Transcriptions) uses generative AI to produce hearing transcripts automatically, replacing older hardware and speeding up case reviews. The **IMAGEN** system (Intelligent Medical Language Analysis Generation) converts medical records into structured, searchable data, helping adjudicators find relevant evidence faster using natural language processing. Full, current figures are published on [SSA’s own performance dashboard](https://www.ssa.gov/ssa-performance), which is updated monthly and is the source for every number in this article. ## What This Means If You’re Applying or Appealing Now If you’re filing a new SSDI claim, the initial-decision improvement is still genuinely good news — you’re statistically likely to hear back faster than someone who applied in 2025. If you’ve already been denied once, budget for reconsideration taking roughly 7 months on average. If your case is headed to a hearing, plan for it to take longer in practice than the average 275-day figure might suggest, given how elevated the pending caseload remains. File your appeal within the 60-day window after any denial — missing it can mean starting over and losing potential back pay. Once you’re approved, my [guide to SSDI back pay](https://savingtoinvest.com/ssdi-back-pay-how-it-works/) covers exactly how much you’ll receive and when it arrives, including the separate 5-month waiting period and 12-month retroactive limit that apply regardless of how long your application took to process. Once your benefit starts, it lands on the same [monthly payment schedule](https://savingtoinvest.com/social-security-payment-schedule-by-birth-date/) as other Social Security benefits. If your disability makes it hard to work and you’re weighing SSDI against other options like an early retirement claim, my [guide to claiming Social Security](https://savingtoinvest.com/claiming-social-security-benefits-later/) covers how those timing tradeoffs work outside of the disability-specific rules here. And if you’re applying as a widow or widower under disability, eligibility can start as early as age 50 — a rule covered in my [Social Security survivor benefits guide](https://savingtoinvest.com/social-security-survivor-benefits/). If your claim gets flagged as a Continuing Disability Review down the line rather than a new application, the review process — and how often SSA checks back in — works differently; see my [guide to Continuing Disability Reviews](https://savingtoinvest.com/continuing-disability-review-what-it-actually-means-if-ssa-is-checking-your-ssdi/) for how that works. ## Common Issues to Watch Out For **Assuming a denial means your claim is weak.** Most people who are ultimately approved for SSDI were denied at least once before winning on reconsideration or at a hearing. A denial is common, not a verdict on your case. **Missing the 60-day appeal window.** If you don’t request reconsideration or a hearing within 60 days of a denial, you generally have to start a new application from scratch — losing time and potential retroactive benefits. **Confusing the hearing wait with the total process time.** If your claim goes all the way to a hearing, your total wait is the sum of all three stages, not just the hearing stage average — realistically a year or more for many claimants. **Not keeping medical records current.** Since IMAGEN and human reviewers both rely on complete medical documentation, gaps in your records can slow down every stage, regardless of how fast SSA’s systems are running. **Assuming your local office matches the national average.** Wait times vary significantly by state and by hearing office — the national figures here are averages, not a guarantee for your specific case. ## Looking Ahead: What to Watch for the Rest of 2026 SSA’s own budget planning has flagged that pending hearings could keep climbing before improving, and the July 2026 data — a flat-to-slightly-worse month across all three stages compared to May — is an early sign that the earlier run of steady improvement may be plateauing rather than continuing indefinitely. Whether the initial and reconsideration stages resume improving, and whether the hearing backlog eventually turns a corner instead of just holding steady, will depend heavily on administrative law judge staffing levels and continued AI rollout. I’ll update this page as SSA publishes new monthly performance data. Frequently Asked Questions QHow long does an initial SSDI decision take in 2026? AAbout 186 days on average as of July 2026, down from 220 days in July 2025 - a 34-day improvement, according to SSA's own performance data. QHow long does SSDI reconsideration take? AAbout 214 days on average in July 2026, down from 240 days in July 2025. QHow long is the wait for an SSDI hearing in 2026? AAbout 275 days on average - just over 9 months - improved from 285 days in July 2025. However, the number of people currently waiting for a hearing remains elevated at roughly 362,000. QWhy isn't the hearing backlog shrinking if wait times are improving? AFaster processing at the initial and reconsideration stages funneled more claims into the hearing stage faster than administrative law judges could clear existing cases through most of 2025 and early 2026. That growth has leveled off since spring 2026, but the backlog hasn't come back down yet. QWhat's driving the faster SSDI processing times? ASSA credits new AI tools, including HeaRT for automated hearing transcripts and IMAGEN for converting medical records into structured, searchable data that helps adjudicators find relevant evidence faster. QIf I'm denied, does that mean my SSDI claim is weak? ANot necessarily. Most people who are ultimately approved for SSDI were denied at least once before succeeding on reconsideration or at a hearing. QWhat happens after my SSDI claim is finally approved? AYou'll receive back pay covering the period your claim was pending, subject to a mandatory 5-month waiting period and a 12-month retroactive limit - see my full guide to SSDI back pay for the exact calculation. **Categories:** Taxes and Retirement --- ### [2027 Medicare IRMAA Brackets: Will You Pay More for Part B and Part D?](https://savingtoinvest.com/2027-medicare-irmaa-brackets-will-you-pay-more-for-part-b-and-part-d/) **Published:** September 14, 2026 **Author:** Andy **Content:** ### Key Takeaways - The standard 2026 Part B premium is $202.90/month; IRMAA can push it as high as $689.90. - 2026 IRMAA starts above $109,000 (single) or $218,000 (married), based on 2024 income. - 2027 brackets are projected near $112,000 (single) and $224,000 (married), up about 3%. - CMS announces official 2027 numbers in November 2026, based on final 2026 CPI data. If your income crosses one of six specific lines, Medicare charges you more — sometimes a lot more — for the exact same Part B and Part D coverage everyone else gets. That surcharge is called IRMAA, and I get more confused emails about it than almost any other Medicare topic. Covered in this Article: [Toggle](#) - [What IRMAA Actually Is](#What_IRMAA_Actually_Is) - [The Income Number That Matters: MAGI](#The_Income_Number_That_Matters_MAGI) - [2026 IRMAA Brackets](#2026_IRMAA_Brackets) - [Looking Ahead: 2027 IRMAA Brackets (Projected)](#Looking_Ahead_2027_IRMAA_Brackets_Projected) - [Worked Examples](#Worked_Examples) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## What IRMAA Actually Is IRMAA stands for Income-Related Monthly Adjustment Amount. It’s a surcharge on top of your regular Medicare Part B and Part D premiums if your income is above certain thresholds. Congress created it in 2003 for Part B, then expanded it to Part D in 2010. The idea: higher earners cover more of their own Medicare costs instead of splitting everything 75/25 with the government. Here’s the part that trips people up. IRMAA isn’t based on this year’s income — it’s based on your tax return from **two years ago**. Your 2026 IRMAA is determined by your 2024 tax return. Your 2027 IRMAA will be based on 2025 income. That two-year lag is exactly why someone can retire, see their income drop sharply, and still get hit with a surcharge based on the bigger paycheck they earned while still working. ## The Income Number That Matters: MAGI IRMAA doesn’t look at your adjusted gross income (AGI) alone — it uses Modified Adjusted Gross Income (MAGI), which adds back tax-exempt muni bond interest to your AGI. It also includes the taxable portion of your Social Security benefits, but not the untaxed portion. If you’re doing Roth conversions, harvesting capital gains, or taking a large IRA withdrawal, that shows up in MAGI two years later as a potential IRMAA trigger. I’ve written a full breakdown of [how AGI and MAGI differ and why it matters for retirement accounts](https://savingtoinvest.com/agi-vs-magi-explained/) if you want the mechanics. ## 2026 IRMAA Brackets The standard Part B premium in 2026 is $202.90/month. Depending on your MAGI, you could pay anywhere from that standard rate up to more than triple it. MAGI (Single)MAGI (Married Filing Jointly)Part B Premium (Monthly)$109,000 or less$218,000 or less$202.90 (standard)$109,001 – $137,000$218,001 – $274,000$284.10$137,001 – $171,000$274,001 – $342,000$405.80$171,001 – $205,000$342,001 – $410,000$527.50$205,001 – $499,999$410,001 – $749,999$649.30$500,000+$750,000+$689.90 Part D IRMAA uses these same six brackets, added on top of your plan’s own premium. The Part D surcharge ranges from about $14.50/month at the lowest tier to roughly $91/month at the top. Notice how close some of these lines sit to each other. Cross a threshold by even $1 and your premium jumps to the next tier’s flat rate — there’s no smoothing or phase-in. For a married couple where both spouses are on Medicare, that $1 can cost the household more than $2,000/year. *Subscribe or follow us to get updates when CMS confirms the official 2027 numbers this November.* ## Looking Ahead: 2027 IRMAA Brackets (Projected) The IRS and Social Security Administration won’t lock in the official 2027 brackets until they have all 12 months of 2026 CPI data — that typically happens in October or November. Based on the data available so far, though, the projected thresholds look like this: MAGI (Single)MAGI (Married Filing Jointly)BracketUp to ~$112,000Up to ~$224,000Standard~$112,000 – $141,000~$224,000 – $282,0001.4x standard~$141,000 – $176,000~$282,000 – $352,0002.0x standard~$176,000 – $211,000~$352,000 – $422,0002.6x standard~$211,000 – $499,999~$422,000 – $749,9993.2x standard$500,000+$750,000+3.4x standard (frozen through 2027) That’s roughly a 3% increase across the first four brackets — the top bracket is legislatively frozen at $500,000/$750,000 and doesn’t adjust for inflation. I’m watching the September 2026 CPI report closely, since that’s typically the last data point CMS needs before finalizing next year’s numbers. I’ll update this page the moment the official 2027 figures are out. ## Worked Examples **Maria**, a single retiree, had $195,000 in MAGI on her 2024 return from a mix of pension income, RMDs, and part-time consulting. In 2026, that lands her in the $171,001–$205,000 bracket, so she pays $527.50/month for Part B instead of the standard $202.90 — an extra $3,895/year. **Tom and Linda**, a married couple both on Medicare, had a combined 2025 MAGI of $360,000 after Tom did a large Roth conversion. Based on the projected 2027 brackets, that puts them in the ~$352,000–$422,000 range — 2.6x standard for *each* of them, adding roughly $6,500/year to their household Medicare costs. ## Common Issues to Watch Out For I hear about the same few mistakes over and over on this one. **Assuming this year’s income is what counts.** It’s your MAGI from two years ago. If you’re planning a big Roth conversion or asset sale, think about the IRMAA hit two years down the road, not this year’s premium. **Not appealing after a life-changing event.** If your income was higher two years ago because you were still working, and you’ve since retired, married, divorced, or lost a spouse, you can appeal using Form SSA-44 with the Social Security Administration. **Missing that both spouses pay separately.** If you and your spouse are both on Medicare, IRMAA applies to each of you individually, not once per household — that doubles the total impact when I calculate real numbers for readers. **Forgetting Part D IRMAA is separate but simultaneous.** People budget for the Part B surcharge and get surprised when the Part D surcharge shows up too. They’re always assessed together, using the same bracket. If you’re weighing whether the [$6,000 Senior Deduction](https://savingtoinvest.com/the-6000-senior-deduction-see-if-you-qualify/) or other year-end moves might nudge your MAGI in either direction, it’s worth running the numbers before December 31 rather than after you file. Frequently Asked Questions QWhat is IRMAA on Medicare? AIRMAA (Income-Related Monthly Adjustment Amount) is a surcharge added to your Medicare Part B and Part D premiums if your income is above certain thresholds. It's based on your Modified Adjusted Gross Income (MAGI) from two years prior. QWhat are the 2026 IRMAA brackets? AFor 2026, based on 2024 income, the standard bracket applies up to $109,000 (single) or $218,000 (married filing jointly). Above that, five more brackets apply, topping out at $689.90/month for Part B if MAGI is $500,000+ (single) or $750,000+ (married). QWhen will the official 2027 IRMAA brackets be announced? ACMS typically announces official Part B and Part D premiums and IRMAA thresholds for the coming year in October or November, once full-year CPI data is available. Expect the official 2027 numbers around November 2026. QCan I appeal an IRMAA determination? AYes, if you've had a life-changing event like retirement, marriage, divorce, or the death of a spouse that lowered your income since the tax year used to calculate your IRMAA. File Form SSA-44 with the Social Security Administration. QDoes IRMAA apply to Medicare Advantage plans? AYes. If your Medicare Advantage plan includes drug coverage, the Part D IRMAA surcharge still applies based on your MAGI, even though you're not in Original Medicare. QWhy is IRMAA based on income from two years ago? AYour most recent full tax return isn't available yet when Medicare sets premiums for the coming year, so the Social Security Administration uses the most recent complete return on file - which is typically from two years prior. **Categories:** Taxes and Retirement --- ### [Grocery Benefits for Seniors: How Medicare Advantage Food Cards and SNAP Are Changing for 2027](https://savingtoinvest.com/grocery-benefits-under-medicare-advantage-and-snap-for-seniors/) **Published:** November 23, 2022 **Author:** Andy **Content:** ### Key Takeaways - CMS now requires independent SSBCI eligibility verification for 2027 - a chronic-condition diagnosis alone may no longer qualify you. - Some plans require existing SSBCI recipients to re-verify for 2027 or lose grocery benefits after a deeming period. - Plans can keep $0 premiums while shrinking grocery cards - one example dropped from $75 to $35 monthly. - SNAP's FY2027 maximum allotment rises to $306/month for one person, effective October 1, 2026. If you’ve seen ads for “free Medicare grocery cards” — or had one and worry about losing it — here’s the straight story heading into 2027: the federal pilot program (VBID) that let many Medicare Advantage plans hand out grocery allowances based on income alone ended December 31, 2025. What replaced it, **Special Supplemental Benefits for the Chronically Ill (SSBCI)**, is about to get a lot stricter. Open Enrollment for 2027 coverage runs October 15 through December 7, 2026. With that window a few weeks out, here’s what’s actually changing, what SNAP now pays, and what to check before you assume your grocery benefit is renewing as-is. Covered in this Article: [Toggle](#) - [What Changed in 2026](#What_Changed_in_2026) - [What’s Changing for 2027](#Whats_Changing_for_2027) - [SNAP: The Benefit Seniors Under-Use Most](#SNAP_The_Benefit_Seniors_Under-Use_Most) - [Other Programs Worth Checking](#Other_Programs_Worth_Checking) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## What Changed in 2026 Through 2025, Medicare Advantage plans in the VBID pilot could offer grocery credits to members based simply on low income or where they lived. That pilot is over. Food and grocery allowances now run only through SSBCI — which, as the name says, requires a **verified chronic condition** (diabetes, heart disease, and similar diagnoses), not just limited income. The practical fallout: only around 11% of standard Medicare Advantage plans still offer any food or produce benefit in 2026, down from about 15%, while roughly 85% of Special Needs Plans (D-SNPs and C-SNPs) still include them. If you had a grocery card in 2025 and it vanished, this rule change — not anything you did — is almost certainly why. ## What’s Changing for 2027 Three separate 2027 shifts are landing at once, and each one can affect whether your grocery benefit is still there next year. **Verification gets stricter — and existing members aren’t grandfathered in.** CMS’s finalized CY2027 Medicare Advantage rule requires plans to independently verify SSBCI eligibility rather than accepting a self-attested chronic condition alone. Some plans are already telling current SSBCI recipients they’ll need to **re-verify eligibility for 2027** — a documented chronic condition alone may no longer be enough on its own; plans are increasingly also requiring you to be flagged as at risk for hospitalization or as needing intensive care coordination. Miss the re-verification window and the benefit stops, typically after a deeming period of around 180 days from when it’s flagged. **Debit cards get real-time checks, and balances stop carrying over.** Where SSBCI benefits load onto a prepaid card, CMS now requires real-time electronic verification at the point of sale confirming both your eligibility and that the item qualifies — and any unused balance can no longer roll into the next plan year. Plans must also now publicly post their SSBCI eligibility criteria, so you can check whether you’d qualify before you enroll rather than finding out after. **The reminder about unused benefits just got canceled.** A 2024 rule would have required plans to mail members a personalized notice every summer listing unused dental, grocery, and other supplemental balances, starting in 2026. CMS rescinded that requirement in the same CY2027 final rule, right before the first mailing was due. Tracking what’s left on your card is now entirely on you — and most grocery allowances reset monthly or quarterly rather than accumulating, so an unused balance rarely rolls over regardless. **Even members who keep their benefit may see it shrink.** Analysts tracking 2027 Annual Notices of Change report plans holding the line on $0 premiums while quietly trimming the supplemental extras that came with them — one cited example dropped a $75/month grocery card to $35/month, part of an estimated $1,880 less in combined annual value across grocery, dental, gym, and hearing benefits on a typical mid-tier plan. A stable premium on your renewal notice doesn’t mean nothing else changed; the benefit details are worth reading line by line, not just the price. If you think you still qualify, call your plan and ask specifically about “SSBCI food and produce benefits” for 2027, whether you need to re-verify, and what documentation they need. For a broader look at other 2027 Medicare Advantage changes — including what happens if your plan exits your area entirely — see my guide to [Medicare Advantage plan exits for 2027](https://savingtoinvest.com/medicare-advantage-plan-exits-2027/). ## SNAP: The Benefit Seniors Under-Use Most While Medicare grocery cards shrink, **SNAP** (food stamps) remains the biggest food benefit going — and seniors are chronically under-enrolled; historically only about half of eligible older adults sign up. That’s real money left unclaimed. SNAP has [special rules for people 60+](https://www.fna.usda.gov/snap/eligibility/elderly-disabled-special-rules) that make qualifying easier than most seniors assume: no gross-income test (only net income after deductions), a **medical expense deduction** for out-of-pocket healthcare costs above $35/month (premiums, prescriptions, even transportation to appointments), and a higher asset limit. Many seniors who “make too much” on paper qualify once medical costs are deducted — that Part B premium deduction alone moves the math meaningfully, especially at [2026’s higher premium](https://savingtoinvest.com/medicare-premiums-and-coinsurance-rates-for-part-b-medical-insurance-and-part-a-hospital-insurance/). USDA’s Thrifty Food Plan sets SNAP’s maximum allotment every year, and the fiscal year 2027 numbers are confirmed. For a one-person household in the 48 states and D.C., the maximum rises to **$306/month** starting October 1, 2026 — up from $298 for the current fiscal year. A family of four’s maximum rises to $1,023. I cover the state-by-state minimum-benefit math — including why some seniors on fixed incomes land at just the program floor — in my [SNAP minimum benefit guide for seniors and veterans](https://savingtoinvest.com/seniors-and-veterans-surviving-on-23-minimum-food-stamp-snap-benefit/). Apply through your state’s SNAP agency, and if you’re 60+, ask about your state’s simplified application for seniors (many have one). **Ruth’s example:** Ruth, 72, has $1,650/month in Social Security — a figure that moves each year with the [Social Security COLA](https://savingtoinvest.com/social-security-tax-and-cost-of-living-adjustment-cola/) — and assumed she earned too much for SNAP. But after deducting her Part B premium ($202.90), $180 in prescriptions and copays, and her rent under the excess shelter deduction, her net income qualified — about $115/month in benefits she’d been leaving on the table for years. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates as the 2027 SSBCI rules and SNAP amounts finalize.* ## Other Programs Worth Checking The **Commodity Supplemental Food Program (CSFP)** provides a free monthly food box to income-qualified seniors 60+ — see the [USDA’s CSFP page](https://www.fna.usda.gov/csfp/commodity-supplemental-food-program) for state contacts. The **Senior Farmers’ Market Nutrition Program** provides coupons for fresh produce in participating states. Local **Area Agencies on Aging** (eldercare.acl.gov, or call 1-800-677-1116) can connect you to Meals on Wheels, congregate meal sites, and food banks — no income test for some programs. And don’t overlook the tax side: food budgets and tax refunds come from the same wallet. If you’re 65+, the [$6,000 OBBBA senior deduction](https://savingtoinvest.com/the-6000-senior-deduction-see-if-you-qualify/) may lower your taxes and free up real grocery money — it phases out between $75,000–$175,000 in income for single filers. ## Looking Ahead: 2027 Outlook The 2027 picture is clearer now than it was earlier this year. SSBCI verification is tightening across the board, existing recipients face real re-verification risk, the mid-year unused-benefit reminder is gone for good, and grocery allowances themselves are trending smaller even for members who stay eligible. None of that is a projection anymore — it’s confirmed in CMS’s finalized CY2027 rule and showing up in plans’ actual 2027 Annual Notices of Change. What’s still unfolding: exactly how aggressively individual plans apply the stricter verification standard, and whether SNAP’s confirmed FY2027 increase (effective October 1, 2026) is enough to offset food-price inflation for seniors losing Medicare Advantage grocery money. If you lost — or are worried about losing — a grocery benefit, the October 15–December 7, 2026 [open enrollment window](https://savingtoinvest.com/medicare-open-enrollment-2027-key-dates-new-rules-and-how-to-actually-compare-pl/) is your chance to compare plans on the benefits that actually survived into 2027, not just the premium. I’ll update this page as 2027 plan details and re-verification requirements firm up. ## Common Issues to Watch Out For I get questions about this a lot, so here’s what trips people up most often. **Believing the ads.** “Free grocery cards for all seniors on Medicare” was never true and is even less true heading into 2027 — eligibility now requires a qualifying chronic condition through SSBCI, verified independently, or an SNP. **Assuming a current SSBCI benefit renews automatically.** Some plans are requiring existing recipients to re-verify for 2027 — don’t wait for a notice; call your plan before your renewal date to confirm what’s needed. **Assuming a stable $0 premium means nothing else changed.** Plans can hold the line on premium while quietly trimming grocery, dental, or gym allowances — read the actual dollar amounts in your Annual Notice of Change, not just the premium line. **Assuming you earn too much for SNAP.** Seniors get a medical expense deduction and no gross income test — run the numbers before deciding, especially with FY2027’s higher maximum allotment. **Paying “helpers” to enroll.** SNAP, CSFP, and SHIP Medicare counseling are free — anyone charging to sign you up is a red flag. Frequently Asked Questions QWhy did my Medicare grocery card disappear in 2026? AThe federal VBID pilot that allowed income-based grocery benefits ended December 31, 2025. Food allowances now run only through SSBCI, which requires a documented chronic condition - millions lost eligibility under the rule change. QDo I need to do anything to keep my grocery benefit for 2027? APossibly. CMS's CY2027 rule requires independent verification of SSBCI eligibility, and some plans are asking existing recipients to re-verify rather than automatically renewing the benefit. Call your plan and ask directly whether re-verification is required and by when. QWill my grocery allowance be the same amount in 2027? ANot necessarily. Even members who keep their benefit may see it shrink - analysts have documented cases of a $75/month grocery card dropping to $35/month as plans hold premiums flat while trimming supplemental extras. Check your 2027 Annual Notice of Change for the actual dollar amount. QDoes my plan still have to remind me about unused grocery or dental balances? ANo. CMS rescinded that requirement in its CY2027 final rule before the first mailing was ever sent. Tracking unused balances is now on you, and most allowances reset monthly or quarterly rather than carrying over. QHow much is the SNAP maximum allotment now? AFor a one-person household in the 48 states and D.C., it's $298/month through September 30, 2026, then rises to $306/month starting October 1, 2026 for fiscal year 2027 - set by USDA's Thrifty Food Plan. QCan seniors get SNAP if they have Social Security income? AOften yes. People 60+ face no gross-income test, can deduct out-of-pocket medical costs above $35/month, and get higher asset limits - many seniors qualify once the Part B premium and prescriptions are deducted. QWhen can I switch plans to get a food benefit back? AMedicare's Annual Enrollment Period for 2027 coverage runs October 15 through December 7, 2026. Compare total plan value against your actual 2027 Notice of Change, not just the grocery perk or the premium alone. QWhat is the Commodity Supplemental Food Program? AA USDA program providing free monthly food packages to income-eligible seniors 60+, distributed through state and local agencies. It can be used alongside SNAP. **Categories:** Taxes and Retirement --- ### [Latest 2027 COLA Estimate and Raise](https://savingtoinvest.com/social-security-tax-and-cost-of-living-adjustment-cola/) **Published:** July 1, 2022 **Author:** Andy **Content:** ### Key Takeaways - The 2026 Social Security COLA is confirmed at 2.8%, pushing the average retirement benefit to $2,085 a month as of June 2026. - The 2027 COLA estimate has narrowed to 3.4%-3.6% after the July CPI-W report, down from the 3.6%-3.8% range in late July and well off the 4.7% June peak. - TSCL and AARP both project 3.6% for 2027, while Mary Johnson's independent estimate is lower at 3.4%; the SSA announces the official figure on October 14, 2026. - Medicare Part B is projected at $209.50/month for 2027 by the trustees - but private forecasts of $216-$219 would eat up to a fifth of the average COLA raise. - The retirement trust fund is projected to be depleted in late 2032, after which only about 78% of scheduled benefits could be paid unless Congress acts. - Other 2026 COLA-linked amounts: SSI maxes at $994 (individual) / $1,491 (couple), and the earnings limit for early claimers who work is $24,480. - The October 14 announcement only confirms the overall percentage - your own exact dollar amount posts to your my Social Security account in late November, with mailed notices following in mid-December. This page tracks Social Security Cost-of-Living Adjustments year by year — confirmed figures and the latest forward estimates. The 2026 COLA is confirmed at **2.8%**, effective January 2026. The 2027 COLA estimate has narrowed to **3.4%–3.6%** after July’s inflation data came in, down from the 3.6%–3.8% range I was tracking in late July and well off the 4.7% peak from June. I’ve also added what the latest Trustees Report says about Medicare Part B premiums for 2027 and the trust fund outlook — both directly affect what actually lands in your bank account, not just the headline COLA percentage. Covered in this Article: [Toggle](#) - [2027 COLA Estimate: 3.4%–3.6% (As of Late August 2026)](#2027_COLA_Estimate_34%E2%80%9336_As_of_Late_August_2026) - [What Each Estimate Would Mean in Dollars](#What_Each_Estimate_Would_Mean_in_Dollars) - [Medicare Part B in 2027: What Could Shrink Your Raise](#Medicare_Part_B_in_2027_What_Could_Shrink_Your_Raise) - [The 2032 Trust Fund Deadline](#The_2032_Trust_Fund_Deadline) - [2026 COLA: Confirmed at 2.8%](#2026_COLA_Confirmed_at_28) - [Other 2026 Amounts Tied to the COLA](#Other_2026_Amounts_Tied_to_the_COLA) - [2025 COLA: Confirmed at 2.5%](#2025_COLA_Confirmed_at_25) - [How COLA Gets Calculated](#How_COLA_Gets_Calculated) - [COLA History: Where 2027 Would Rank](#COLA_History_Where_2027_Would_Rank) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## 2027 COLA Estimate: 3.4%–3.6% (As of Late August 2026) The range has tightened and moved lower since my last update. The Senior Citizens League (TSCL) cut its 2027 COLA projection to **3.6%** on August 13, down from the 3.8% it had held for the two prior months. Independent analyst Mary Johnson’s estimate fell further, to **3.4%** — down from 3.7% a month earlier and a full 1.3 points below her 4.7% June peak. AARP entered the picture in mid-July with its own first-ever COLA projection, at **3.6%**, matching TSCL. The trigger was the July Consumer Price Index, released August 12, which showed inflation cooling to 3.4% year-over-year (down from 3.5% in June). “It’s doubtful that anyone is celebrating because 3.4% is still higher than the average,” Johnson said in a statement. Lower inflation is good news generally, but it works against retirees here — a smaller CPI-W gain means a smaller COLA. The next data point is the August CPI-W reading, due out in mid-September. The official 2027 COLA is calculated from the average of the July, August, and September CPI-W readings compared to the same three months a year earlier — July’s number is locked in, so two of the three inputs are still to come. ### What Each Estimate Would Mean in Dollars The average retired worker Social Security benefit is about **$2,084.40** a month as of June 2026, reflecting the confirmed 2.8% COLA. COLA EstimateMonthly IncreaseNew Avg. Monthly Benefit3.6% (TSCL and AARP estimate)+$75/month~$2,1593.4% (Mary Johnson’s estimate)+$71/month~$2,155 Here’s what that narrower, lower range looks like for two hypothetical retirees: **Mark**, who receives the average benefit of about $2,084 a month, would see between **$71 and $75 more a month** depending on which estimate holds — a $4 spread, and noticeably smaller than the roughly $19 spread I was seeing back in June. **Sarah**, who receives $1,500 a month, would see between **$51 and $54 more** a month across the same range. Your own dollar impact also depends heavily on where you live and what your benefit history looks like — see my breakdown of the [average Social Security check by state](https://savingtoinvest.com/average-social-security-check-by-state/) for how the national average compares to your state. The official 2027 COLA will be announced on **October 14, 2026**. I’ll update this page when the number is confirmed — [subscribe here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get notified. Federal employees watching Social Security COLA trends may also want to keep an eye on the [2027 GS pay raise fight](https://savingtoinvest.com/federal-employee-gs-pay-chart-and-raise/), where a similar push-and-pull is playing out over civilian pay. ## Medicare Part B in 2027: What Could Shrink Your Raise Medicare Part B premiums are deducted directly from Social Security checks, so the Part B increase is the other half of the COLA math that many people miss. The 2026 Part B premium is **$202.90/month**, up from $185 in 2025. For 2027, the latest [Medicare Trustees Report](https://www.ssa.gov/oact/trsum/) projects a standard premium of **$209.50** — a $6.60 increase. But the trustees have repeatedly underestimated in recent years, and private forecasters are projecting somewhere between **$216 and $219**. Here’s why that matters for your net raise. Under a 3.6% COLA, the average check goes up about $75 a month. Subtract the trustees’ $6.60 Part B increase and the net raise is roughly **$68**. If the premium instead lands around $218, the net raise shrinks to about **$60** — a fifth of the headline COLA gone before it reaches you. The official 2027 Part B premium (and the income-related IRMAA surcharge brackets) will be announced in **November 2026**. For what’s already changed this year, see my rundown of [2026 Medicare coverage changes](https://savingtoinvest.com/changes-to-your-2026-medicare-coverage/). ## The 2032 Trust Fund Deadline The other number from the latest Trustees Report worth knowing: Social Security’s main retirement trust fund is now projected to be depleted in **late 2032**. If Congress does nothing before then, incoming payroll taxes would cover only about **78% of scheduled benefits**. In dollar terms, a 22% across-the-board cut would take today’s $2,084 average check down by roughly **$459 a month**. That’s the mechanical math — not a prediction that it happens. For what it’s worth, Congress has never actually let a cut like this take effect. The last time the fund got this close, in 1983, lawmakers passed a package of fixes (including gradually raising the full retirement age to 67 — a change that just fully phased in for people born in 1960 or later). The options on the table this time — payroll tax changes, benefit formula adjustments, retirement age changes — all get more painful the longer Congress waits, which is why I’d expect this to become a bigger political story as 2032 gets closer. If you’re planning around claiming ages and benefit timing, my guide to [key retirement ages for 401(k), IRA, and Social Security](https://savingtoinvest.com/retirement-ages-and-eligilbility-rules-for-receiving-401k-ira-and-social-security-beneifts/) covers the milestones that matter. ## 2026 COLA: Confirmed at 2.8% The SSA confirmed the 2026 COLA at **2.8%**, effective January 2026 — up from 2.5% in 2025. This pushed the average retired worker benefit to about $2,084.40 a month as of June 2026. For someone who was receiving $2,000 a month in 2025, the 2.8% COLA added about **$56 a month**, or roughly $672 over the year — before the Medicare Part B increase was deducted. ## Other 2026 Amounts Tied to the COLA The COLA doesn’t just move retirement checks. A few other 2026 numbers moved with it that readers ask me about a lot: **SSI payments.** The maximum federal [SSI payment](https://savingtoinvest.com/ssi-maximum-payment-amounts/) rose to **$994/month for an individual** (up $27) and **$1,491/month for a couple** (up $41). Your actual amount can be lower based on income and living situation, and some states add a supplement on top — my full SSI guide covers the reduction rules. **SNAP eligibility for seniors.** A higher COLA check can push some seniors close to SNAP’s income limits, but the program’s medical-expense deduction and asset rules for people 60+ mean many still qualify — see my full breakdown in [grocery benefits under Medicare Advantage and SNAP for seniors](https://savingtoinvest.com/grocery-benefits-under-medicare-advantage-and-snap-for-seniors/), including a worked example of the net-income math. **The earnings limit if you work while collecting.** If you’re collecting Social Security before full retirement age and still working, the 2026 [earnings limit](https://www.ssa.gov/benefits/retirement/planner/whileworking.html) is **$24,480**. Earn above that and the SSA withholds $1 in benefits for every $2 over the limit. In the year you reach full retirement age, a higher limit of **$65,160** applies (with a gentler $1-for-$3 withholding), and it only counts earnings in the months before your birthday month. Withheld benefits aren’t lost forever — your check is recalculated upward at full retirement age to credit the months benefits were withheld. ## 2025 COLA: Confirmed at 2.5% With slowing inflation, the 2025 COLA was confirmed at **2.5%**, announced in October 2024. This was 0.7% lower than the 3.2% increase in 2024 and added roughly $50 more a month for the average retired worker. ## How COLA Gets Calculated The COLA annual increase is based on the percentage change in the **Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W)** for the third quarter of the current year compared to the third quarter of the previous year in which a COLA became effective. The [SSA](https://www.ssa.gov/cola/) publishes the official COLA in mid-October each year, with changes effective the following January. Analysts like Mary Johnson, TSCL, and now AARP track monthly CPI-W data to produce early estimates throughout the year — these tighten up significantly as the July and August figures come in, which is exactly what’s happening right now. One limitation worth knowing: CPI-W tracks urban workers’ spending patterns, not retirees’. Older Americans spend a higher share of income on healthcare and housing than CPI-W reflects. A separate index (CPI-E, for Elderly) has historically tracked higher than CPI-W, but the SSA is legally required to use CPI-W. ## COLA History: Where 2027 Would Rank YearCOLANotes198014.3%All-time high198111.2%19827.4%20238.7%Largest since 1981; post-COVID inflation peak20225.9%Inflation surge as economy reopened20095.8%Based on 2008 energy spike**2027 (est.)****3.4%–3.6%****Estimates narrowed after July CPI-W data; official figure due October 14, 2026**20243.2%Inflation cooling20262.8%Confirmed20252.5%Confirmed20211.3%20201.6%20192.8%20182.0%20170.3%20160.0%No adjustment20151.7%20140.0%No adjustment20131.5% ### Common Issues to Watch Out For I get questions about COLA every year around this time, so here are a few things people commonly get tripped up on. **Forecasts aren’t official.** Numbers like “3.6%” or “3.4%” you see in the news are estimates from independent analysts, not SSA figures. The real number isn’t locked until the October 14 announcement. **Medicare Part B eats into the raise.** If your Part B premium rises at the same time (it usually does), your net check increase will be smaller than the headline COLA percentage suggests. See the 2027 Part B section above for the actual math. **The earnings limit surprises early claimers.** If you claim before full retirement age and keep working, earning over $24,480 in 2026 triggers benefit withholding. I hear from readers every year who didn’t know this until a chunk of their check disappeared. **SSI and SSDI get the same COLA percentage as retirement benefits**, but the dollar impact looks different because base payment amounts differ significantly between programs. **The COLA is based on CPI-W, not CPI-U or CPI-E.** CPI-W tracks urban wage earners, not retirees specifically — one reason some advocacy groups argue the COLA understates the inflation seniors actually experience on healthcare and housing. **The October announcement isn’t your personal notice.** October 14 confirms the overall percentage for everyone, but your own exact new dollar amount doesn’t show up until later — SSA typically posts individual COLA notices in the my Social Security online message center starting in late November, with mailed paper notices following in mid-December for anyone not signed up for online-only delivery. Don’t click links in unsolicited emails claiming your amount is “ready to view” — go directly to ssa.gov/myaccount instead of through the email. Manual math rarely matches your notice exactly — even after accounting for Medicare. If you calculate prior benefit × (1 + COLA%) yourself, expect your answer to be a few cents to a dollar or more off from your official SSA notice, and it’s not an error. Per SSA’s own COLA methodology, the raise is applied to your Primary Insurance Amount and rounded down to the next lower dime, then your Medicare Part B premium is subtracted and the result is rounded down again to the next lower whole dollar. That double rounding compounds further if you receive a spousal or dual benefit, since each component gets rounded separately before being combined. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates as 2027 COLA estimates firm up.* Frequently Asked Questions QWhat is the confirmed 2026 Social Security COLA? AThe 2026 COLA is confirmed at 2.8%, effective with payments starting January 2026. The average retirement benefit rose to about $2,085 a month as of June 2026. QWhat is the current estimate for the 2027 Social Security COLA? AAs of late August 2026, estimates cluster in a 3.4%-3.6% range. The Senior Citizens League and AARP both project 3.6%, while independent analyst Mary Johnson's estimate is 3.4%, down from an earlier 4.7% peak in June. The official number will be announced October 14, 2026. QWhen will the official 2027 Social Security COLA be announced? AThe Social Security Administration will announce the official 2027 COLA on October 14, 2026, based on average CPI-W data from July, August, and September 2026. QWhen will I find out my own exact new benefit amount, not just the COLA percentage? AThe October 14 announcement only confirms the overall percentage that applies to everyone. Your specific new dollar amount typically posts to the message center of your my Social Security account starting in late November, with mailed paper notices following in mid-December for anyone not signed up for online-only delivery. Go directly to ssa.gov/myaccount rather than clicking a link in an unsolicited email claiming your amount is ready. QHow much of the 2027 COLA will Medicare Part B take back? AThe trustees project the 2027 Part B premium at $209.50 (a $6.60 increase), but private forecasters expect $216-$219. Under a 3.6% COLA, that means roughly $7-$15 of the average $75 monthly raise would go to Part B before it reaches your check. QWill Social Security really be cut 22% in 2032? AThe latest Trustees Report projects the retirement trust fund will be depleted in late 2032, after which payroll taxes would cover only about 78% of scheduled benefits. That cut only happens if Congress does nothing - historically, as in 1983, lawmakers have acted before across-the-board cuts took effect. QHow much can I earn in 2026 while collecting Social Security early? AIf you're under full retirement age all year, you can earn up to $24,480 in 2026 before the SSA withholds $1 for every $2 over the limit. In the year you reach full retirement age, the limit is $65,160 with $1 withheld per $3 over. Withheld amounts are credited back via a higher benefit once you reach full retirement age. QHow is the Social Security COLA calculated? AThe SSA compares the average CPI-W for the third quarter of the current year to the third quarter of the previous year in which a COLA took effect. The percentage increase, if any, becomes the following year's COLA. **Categories:** Government Rebates and Payments **Tags:** COLA, Social Security, taxes --- ### [SNAP Minimum Benefit 2026: Why Some Seniors and Veterans Get Just $24 a Month](https://savingtoinvest.com/seniors-and-veterans-surviving-on-23-minimum-food-stamp-snap-benefit/) **Published:** February 27, 2023 **Author:** Andy **Content:** ### Key Takeaways - The federal SNAP minimum benefit for one- and two-person households rose to $24 a month for fiscal year 2026 (October 1, 2025 - September 30, 2026), up $1 from $23. - Alaska, Hawaii, Guam, and the U.S. Virgin Islands have higher minimums - up to $48 a month in rural Alaska - because their Thrifty Food Plan food costs run higher than the mainland. - The minimum exists because of how SNAP math works: if your calculated benefit comes out above $0 but below the floor, USDA rounds you up to the minimum instead of cutting you off. - Seniors and people with disabilities living alone or as a couple on Social Security or SSI are the group most likely to actually land on the minimum, since their income often sits right at the edge of the formula. - The minimum sat flat at $23 for three straight years (FY2023-FY2025) before this year's $1 increase - it hasn't kept pace with grocery inflation. - Households with an elderly or disabled member can often qualify for more than the minimum by reporting unreimbursed medical expenses over $35 a month. The federal minimum benefit for the [Supplemental Nutrition Assistance Program (SNAP)](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/) is **$24 a month** for a one- or two-person household in fiscal year 2026, which runs from October 1, 2025 through September 30, 2026. That’s up $1 from the $23 minimum that held steady for the previous three years, per USDA’s FY2026 Cost-of-Living Adjustment memo. It’s not a typo, and it’s not a cap on what you can get — it’s a floor. Here’s how it actually works, who ends up there, and what the numbers look like by state. Covered in this Article: [Toggle](#) - [What the SNAP Minimum Benefit Actually Is](#What_the_SNAP_Minimum_Benefit_Actually_Is) - [Minimum Benefit by State and Territory, FY2026](#Minimum_Benefit_by_State_and_Territory_FY2026) - [Why Seniors and Small Households End Up at the Floor](#Why_Seniors_and_Small_Households_End_Up_at_the_Floor) - [The Minimum Hasn’t Kept Pace With Food Prices](#The_Minimum_Hasnt_Kept_Pace_With_Food_Prices) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) ## What the SNAP Minimum Benefit Actually Is SNAP doesn’t hand out a flat amount. Your benefit is calculated as your area’s **maximum allotment** for your household size, minus 30% of your net monthly income. For a one-person household in the 48 states and D.C., the FY2026 maximum is $298. The math can produce a small positive number for a household whose income is high enough to eat up most of that $298 but not all of it. Rather than sending someone a check for $6 or $11, USDA sets a floor — the **minimum benefit** — and rounds anyone in that gap up to it. If your calculated benefit comes out at $0 or below, you’re not approved at all. The minimum only applies to households that are already eligible; it’s not a consolation payment. ## Minimum Benefit by State and Territory, FY2026 The minimum benefit isn’t uniform everywhere. It follows the same Thrifty Food Plan cost basis as the maximum allotment, which is why Alaska, Hawaii, Guam, and the U.S. Virgin Islands all run higher than the 48 contiguous states. AreaMinimum Benefit (1–2 Person Household)48 States and D.C.$24Guam$35U.S. Virgin Islands$31Alaska (Urban)$31Alaska (Rural 1)$39Alaska (Rural 2)$48Hawaii$41 *[Source: USDA FY2026 SNAP Cost-of-Living Adjustment memo](https://www.usda.gov/sites/default/files/guidance-documents/fns.snap-cola-fy26memo.pdf)* That’s a real spread — a two-person household on the minimum in rural Alaska (Rural 2) gets exactly double what the same household gets in the other 48 states, reflecting how much more groceries actually cost getting shipped into remote parts of the state. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) and I’ll update this page each year when USDA releases the new fiscal-year figures.* ## Why Seniors and Small Households End Up at the Floor The minimum benefit disproportionately lands on one- and two-person households — and within that group, seniors and people with disabilities on Social Security or SSI show up constantly, because their income is often just high enough relative to their household size to produce a benefit near the bottom of the range rather than $0. **Consider Carol**, a 68-year-old widow living alone in Ohio on a $1,150 monthly Social Security check. After the $209 standard deduction, her net monthly income is $941. SNAP’s formula reduces her $298 maximum allotment by 30% of that net income — about $282 — leaving a calculated benefit of roughly $16. Since that’s below the $24 floor, Carol gets bumped up to the minimum: $24 a month. **Consider also Frank and Doris**, a retired couple in Texas with combined Social Security income of $1,950 a month. Their $546 two-person maximum allotment, minus 30% of their $1,741 net income (about $522), works out to roughly $24 — landing them at the minimum almost exactly through the standard math, no rounding needed. Both examples are single-earner or dual-Social-Security households — exactly the profile that shows up again and again in comments on this page from people describing their own $23 or $24 checks. ## The Minimum Hasn’t Kept Pace With Food Prices Some historical context, since this number moves less than people expect. The minimum benefit was **$16** in FY2020. It jumped well above that temporarily during COVID-era emergency allotments, when some low-income households briefly received up to $281 a month regardless of the standard formula. Once those emergency allotments ended in early 2023, the minimum reset to $23 — and stayed exactly there for three consecutive fiscal years (FY2023 through FY2025) before this year’s modest bump to $24. That three-year freeze is the real story behind a lot of the frustration seniors have voiced about this figure — grocery prices kept climbing while the minimum benefit didn’t move at all. ## Common Issues to Watch Out For **Assuming the minimum means you’re barely eligible.** Getting bumped to the floor doesn’t mean you’re on the edge of losing SNAP — it means your income already used up nearly all of your calculated allotment. You’re still fully approved, just capped at the minimum rather than getting $0. **Not reporting medical expenses.** If you’re 60 or older, or have a disability, unreimbursed medical costs over $35 a month (co-pays, prescriptions, transportation to appointments) can be deducted from your income before SNAP calculates your benefit. That deduction can push someone off the minimum floor and onto a meaningfully higher amount — it’s worth reporting to your caseworker even if you assume it won’t matter. **Confusing the minimum with a cutoff.** There’s no such thing as being approved for “less than the minimum.” If the math produces anything above $0, you get at least the minimum; if it produces $0 or below, you’re not approved. There’s no in-between denial. **Assuming the minimum is the same nationwide.** It isn’t — see the table above. If you’re in Alaska, Hawaii, Guam, or the U.S. Virgin Islands, your floor (and your maximum allotment) is higher than the 48-state figure. ## Looking Ahead: 2027 Outlook USDA typically releases the next fiscal year’s SNAP COLA memo in August, for figures that take effect October 1. Based on the same Thrifty Food Plan cost review that produced this year’s modest $1 increase, I’d expect the FY2027 minimum to move up by a similarly small amount rather than jump sharply — barring a larger Thrifty Food Plan re-evaluation, which USDA conducts periodically and which produced a bigger one-time jump back in 2021. I’ll update this page as soon as the FY2027 memo is out, along with the new maximum allotments and income eligibility standards for the year ahead. If you’re navigating SNAP alongside other benefits, my guides to [SSI maximum payment amounts](https://savingtoinvest.com/ssi-maximum-payment-amounts/), the annual [Social Security COLA increase](https://savingtoinvest.com/social-security-tax-and-cost-of-living-adjustment-cola/), and [Medicare Extra Help for prescription drug costs](https://savingtoinvest.com/medicare-extra-help-part-d-low-income-subsidy/), and my breakdown of [Medicare Advantage grocery benefits for seniors](https://savingtoinvest.com/grocery-benefits-under-medicare-advantage-and-snap-for-seniors/) cover the other programs that often overlap with SNAP eligibility for seniors on fixed incomes. And if you’re wondering whether your income counts as “poor” by federal standards in the first place, I’ve got a [federal poverty level guide](https://savingtoinvest.com/would-you-be-considered-poor-based-on-federal-poverty-levels/) that walks through the thresholds SNAP eligibility is built on. SNAP funding itself has been a live political question this year too — see my [SNAP shutdown funding risk breakdown](https://savingtoinvest.com/snap-shutdown-funding-risk-2026/) for what’s actually different about this year’s funding fight versus prior ones. Frequently Asked Questions QWhat is the SNAP minimum benefit in 2026? A$24 a month for one- and two-person households in the 48 contiguous states and D.C., for fiscal year 2026 (October 1, 2025 - September 30, 2026). It's higher in Alaska ($31-$48 depending on region), Hawaii ($41), Guam ($35), and the U.S. Virgin Islands ($31). QWhy do some households get only the minimum SNAP benefit instead of $0? ASNAP calculates your benefit as your area's maximum allotment for your household size minus 30% of your net monthly income. If that math produces a small positive amount below the minimum, USDA rounds you up to the minimum rather than sending a token payment. If it produces $0 or less, you aren't approved at all. QWho typically ends up at the SNAP minimum benefit? AMostly one- and two-person households, disproportionately seniors and people with disabilities living alone or as a couple on Social Security or SSI, whose income relative to household size lands them at the bottom of the calculation. QHas the SNAP minimum benefit kept up with food price inflation? ANot consistently. It was $16 in FY2020, rose temporarily during pandemic-era emergency allotments, then held flat at $23 for three straight fiscal years (FY2023-FY2025) before this year's $1 increase to $24. QCan I get more than the minimum if I have high medical expenses? APossibly. Households with a member who is 60 or older or has a disability can deduct unreimbursed medical expenses over $35 a month, which lowers net income and can raise your calculated benefit above the floor. QWhy is the minimum benefit higher in Alaska and Hawaii? AThe minimum, like the maximum allotment, is based on each area's Thrifty Food Plan cost, which reflects local food prices. Alaska and Hawaii have meaningfully higher grocery costs, especially in rural Alaska, so both their floors and ceilings run higher than the 48 contiguous states. QWill the SNAP minimum benefit go up again in 2027? ALikely a modest increase, based on the same annual Thrifty Food Plan cost-of-living adjustment process. USDA typically announces the new fiscal-year figures in August for the October 1 effective date - I'll update this page once the FY2027 memo is released. **Categories:** Taxes and Retirement --- ### [Medicare Advantage Plan Exits for 2027: What to Do If Your Plan Sends a Non-Renewal Notice](https://savingtoinvest.com/medicare-advantage-plan-exits-2027/) **Published:** August 10, 2026 **Author:** Andy **Content:** ### Key Takeaways - Insurers are exiting unprofitable Medicare Advantage markets at an accelerated pace heading into 2027, continuing a trend that already forced 2.6 million enrollees off their plans for 2026. - If your plan is leaving your area or your county, you'll receive a formal non-renewal notice, typically around October, ahead of Medicare's Oct 15-Dec 7 Open Enrollment window. - A non-renewal notice triggers a Special Enrollment Period (SEP), giving you extra time and flexibility to pick new coverage beyond the standard enrollment dates. - Rural and lower-density markets are hit hardest, since thinner enrollment makes those areas less profitable for insurers to serve. - CMS's ~2.48% average payment increase for 2027 (worth roughly $13 billion industry-wide) could slow the pace of exits somewhat, but isn't expected to reverse the trend. - If you don't act on a non-renewal notice, you default to Original Medicare with no supplemental drug or Medigap coverage automatically in place. If you have a Medicare Advantage plan, don’t assume it’ll automatically be there again next year. Insurers have been pulling out of unprofitable markets at an unusual pace, and the pattern is continuing into 2027 — millions of enrollees are getting non-renewal notices this fall, many of them in rural or lower-density areas where Medicare Advantage has never been as profitable for insurers to serve. Here’s what a plan exit actually means for your coverage, and exactly what to do if you get one of these notices. Covered in this Article: [Toggle](#) - [Why Are So Many Medicare Advantage Plans Exiting?](#Why_Are_So_Many_Medicare_Advantage_Plans_Exiting) - [What Happens If Your Plan Is Exiting](#What_Happens_If_Your_Plan_Is_Exiting) - [What to Do If You Get a Non-Renewal Notice](#What_to_Do_If_You_Get_a_Non-Renewal_Notice) - [How This Connects to the Rest of 2026–2027 Medicare Changes](#How_This_Connects_to_the_Rest_of_2026%E2%80%932027_Medicare_Changes) - [Looking Ahead: 2027 Open Enrollment](#Looking_Ahead_2027_Open_Enrollment) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## Why Are So Many Medicare Advantage Plans Exiting? The wave of plan terminations has been building for a couple of years now. UnitedHealth, Humana, and CVS/Aetna — three of the largest Medicare Advantage insurers — have all been shedding unprofitable plans and service areas to protect their earnings, rather than continuing to absorb losses in markets where enrollment is too thin to be profitable. For the 2026 plan year, roughly 2.6 million Medicare Advantage members lost their existing plan when insurers exited their county or discontinued the plan entirely. The pattern is continuing for 2027, with CMS and industry analysts flagging an unprecedented spike in plan exits threatening the overall stability of the Medicare Advantage market in some regions. **Rural areas are hit hardest.** Medicare Advantage plans rely on enough enrolled members in a given service area to make the insurer’s risk pool work. In rural or lower-density counties, that math is thinner to begin with, which is exactly why insurers are concentrating their exits there rather than in dense metro markets. **One factor that could slow the trend:** CMS finalized an average Medicare Advantage payment increase of about 2.48% for 2027 — worth roughly $13 billion across the industry. That’s better funding than insurers had been bracing for, and it may convince some plans to stay in marginal markets a bit longer. It’s not expected to reverse the broader exit trend, though. For context on how that compares to what retirees are seeing on the benefits side, the [2027 Social Security COLA](https://savingtoinvest.com/social-security-tax-and-cost-of-living-adjustment-cola/) is currently tracking around 3.8%. ## What Happens If Your Plan Is Exiting If your specific plan is leaving your service area or being discontinued entirely for 2027, Medicare requires the insurer to send you a formal **non-renewal notice**, typically arriving around October — timed just ahead of Medicare’s annual Open Enrollment period. This notice isn’t the same as a routine “here are your plan’s changes for next year” letter (called an Annual Notice of Change, or ANOC). A non-renewal notice specifically means your current plan will not exist in your area next year, and you must actively choose new coverage. **A non-renewal notice triggers a Special Enrollment Period (SEP).** This gives you additional flexibility beyond the standard Oct 15–Dec 7 Open Enrollment window — typically extending into the following year — to compare and enroll in a new plan without being treated as a late enrollee. The exact SEP window and rules can vary, so read your specific notice carefully for your deadline. ## What to Do If You Get a Non-Renewal Notice 1. **Don’t ignore it.** If you take no action, you’ll default to Original Medicare (Parts A and B) with no Part D drug coverage and no Medigap supplement automatically in place — a real coverage gap if you’re managing ongoing prescriptions or chronic conditions. 1. **Compare plans using Medicare’s Plan Finder.** Enter every medication you take, at the exact dosage, since drug formularies vary significantly between plans even within the same insurer. The same total-cost math I walk through in my [guide to choosing a health insurance plan](https://savingtoinvest.com/health-care-plans-10-tips-on-choosing/) — premium plus realistic out-of-pocket costs, not premium alone — applies here too. 1. **Decide between a new Medicare Advantage plan and Original Medicare plus a standalone Part D plan.** If you switch to Original Medicare, look into a Medigap supplement too — but note that Medigap medical underwriting rules vary by state, and you may not have guaranteed-issue rights outside your initial enrollment period unless your state or situation qualifies for an exception. 1. **Check whether your doctors and hospitals are in-network** for any plan you’re considering — network disruption is one of the most common complaints when switching Medicare Advantage plans, since networks can differ substantially from your old plan even within the same county. 1. **Use your SEP window fully.** Because a non-renewal notice gives you a Special Enrollment Period, you generally aren’t limited to making your decision only during the standard Oct 15–Dec 7 window — confirm your specific SEP deadline from your notice rather than assuming it matches the standard calendar. ## How This Connects to the Rest of 2026–2027 Medicare Changes Plan exits are happening alongside several other Medicare Advantage changes taking effect around the same time — including new limits on non-health “extra” benefits (like food or funeral-planning allowances) under the Special Supplemental Benefits for the Chronically Ill rules, and a shrinking number of stand-alone Part D plans generally. If losing your plan also means losing a grocery or food allowance, see my full breakdown of [Medicare Advantage grocery benefits and how SSBCI is changing for 2027](https://savingtoinvest.com/grocery-benefits-under-medicare-advantage-and-snap-for-seniors/). For the full rundown of what’s changing across Medicare more broadly this year, see my [guide to 2026 Medicare coverage changes](https://savingtoinvest.com/changes-to-your-2026-medicare-coverage/), which also covers the 2027 Part B premium outlook. ## Looking Ahead: 2027 Open Enrollment Open Enrollment for 2027 coverage runs October 15 through December 7, 2026. If you haven’t received a non-renewal notice but want to double-check your plan’s status for next year, watch your mail closely in September and October — insurers are required to notify affected members with enough lead time to make an informed choice, but notices can arrive close to the start of Open Enrollment itself. ## Common Issues to Watch Out For **Confusing a non-renewal notice with a routine Annual Notice of Change.** Every Medicare Advantage enrollee gets an ANOC each fall listing next year’s costs and benefit changes for their existing plan. A non-renewal notice is different — it means the plan itself won’t exist for you next year, not just that its terms are changing. **Assuming your doctor network carries over.** Even if you pick a new plan from the same insurer, network participation can differ by product and by county — always verify directly rather than assuming continuity. **Missing the SEP deadline.** Special Enrollment Periods triggered by a non-renewal have their own specific window, separate from standard Open Enrollment. Check your notice for the exact date rather than assuming you have until December 7. **Not checking whether the plan is exiting your specific county.** Insurers sometimes stay in some counties within a state while exiting others — read your notice carefully rather than assuming a headline about an insurer “leaving the state” applies to you specifically. Frequently Asked Questions QWhat does it mean if my Medicare Advantage plan is not renewing for 2027? AIt means your specific plan will no longer be offered in your service area next year. You'll receive a formal non-renewal notice, typically in October, and must actively choose new Medicare coverage rather than being automatically re-enrolled. QDo I get extra time to choose a new plan if mine is exiting? AYes. A non-renewal notice triggers a Special Enrollment Period (SEP) that gives you additional flexibility beyond the standard Oct 15-Dec 7 Open Enrollment window. Check your specific notice for your exact SEP deadline. QWhat happens if I don't pick a new plan after getting a non-renewal notice? AYou'll default to Original Medicare (Parts A and B) with no Part D drug coverage or Medigap supplement automatically in place, which can leave you with meaningful coverage gaps, especially for prescriptions. QWhy are so many Medicare Advantage plans exiting markets right now? AMajor insurers, including UnitedHealth, Humana, and CVS/Aetna, have been shedding unprofitable plans and service areas - particularly in rural or lower-density counties where enrollment is too thin to be profitable - to protect their overall earnings. QWill Medicare Advantage plan exits slow down for 2027? ACMS finalized an average payment increase of about 2.48% for Medicare Advantage plans in 2027, which could convince some insurers to stay in marginal markets. It's expected to soften, not reverse, the broader exit trend. QHow is a non-renewal notice different from my plan's Annual Notice of Change? AAn Annual Notice of Change (ANOC) lists next year's cost and benefit changes for a plan you can keep. A non-renewal notice means the plan won't exist for you at all next year, requiring you to choose different coverage. **Categories:** Taxes and Retirement --- ### [Medicare Open Enrollment 2027: Key Dates, New Rules, and How to Actually Compare Plans](https://savingtoinvest.com/medicare-open-enrollment-2027-key-dates-new-rules-and-how-to-actually-compare-pl/) **Published:** September 2, 2026 **Author:** Andy **Content:** ### Key Takeaways - Medicare's 2027 Annual Enrollment Period runs October 15 - December 7, 2026; changes start January 1, 2027. - CMS dropped the 'significance' threshold - one doctor leaving your network can now trigger a Special Enrollment Period. - Marketing restrictions on insurers and agents loosen October 1, 2026 - expect more calls, mail, and ads. - The Part D $2,400 out-of-pocket cap is now a permanent feature of the program, not a one-year change. - Even if your 2026 plan worked fine, premiums, formularies, and networks can still shift for 2027. - AEP is not the same as Medigap Open Enrollment - mixing them up is a common, costly mistake. - A separate Medicare Advantage Open Enrollment Period (Jan 1 - Mar 31) allows one more plan switch. Medicare’s Annual Enrollment Period for 2027 coverage runs October 15 through December 7, 2026 — the annual window when you can switch Medicare Advantage plans, change Part D drug coverage, or move between Original Medicare and Medicare Advantage. This year’s window comes with more than the usual “review your plan” advice. A rule change around provider network departures, looser marketing restrictions, and a newly permanent Part D benefit structure all make 2027’s open enrollment worth more than a five-minute glance at your renewal notice. Here’s what’s actually different, what to watch for, and where people most often get tripped up. Covered in this Article: [Toggle](#) - [The Basics: What Open Enrollment Actually Lets You Do](#The_Basics_What_Open_Enrollment_Actually_Lets_You_Do) - [What’s New for 2027](#Whats_New_for_2027) - [The Confusion That Costs People the Most: AEP vs. Medigap Open Enrollment](#The_Confusion_That_Costs_People_the_Most_AEP_vs_Medigap_Open_Enrollment) - [What to Actually Check This Fall](#What_to_Actually_Check_This_Fall) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: What to Watch After This AEP](#Looking_Ahead_What_to_Watch_After_This_AEP) ## The Basics: What Open Enrollment Actually Lets You Do During AEP, you can switch from Original Medicare to a Medicare Advantage plan, switch back from Medicare Advantage to Original Medicare, move from one Medicare Advantage plan to another, or change your standalone Part D prescription drug plan. Any change you make takes effect January 1, 2027. If you do nothing, your current coverage generally continues automatically — but “automatically continues” doesn’t mean “stays the same.” Premiums, deductibles, drug formularies, and provider networks can all change from one year to the next even without you lifting a finger, which is exactly why CMS and consumer advocates keep telling people to review their coverage every fall rather than assuming last year’s plan is still the best fit. ## What’s New for 2027 CMS finalized a rule eliminating the “significance” threshold that used to apply to provider network departures. Previously, losing access to your doctor only triggered a Special Enrollment Period if the departure was considered a “significant” change to your plan’s network — a standard that left a lot of individual departures uncovered. Under the new rule, if your specific doctor leaves your plan’s network, that alone can qualify you for a Special Enrollment Period to find a new plan, regardless of how many other providers stayed. Marketing restrictions on insurers, agents, and third-party marketing organizations also loosen starting October 1, 2026. Consumer advocates expect this to translate into a noticeably heavier volume of mail, phone calls, and advertising during this year’s AEP — worth knowing in advance so an unfamiliar call doesn’t catch you off guard. On the drug coverage side, the Part D redesign’s $2,400 annual out-of-pocket cap — first introduced as part of a multi-year phase-in — becomes a permanent, ongoing feature of the program for 2027, not a temporary provision. For the fuller picture on where 2026 Medicare costs and premiums stand heading into this transition, see my [2026 Medicare coverage changes guide](https://savingtoinvest.com/changes-to-your-2026-medicare-coverage/). *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) and I’ll update this page as CMS finalizes any additional 2027 plan details before AEP opens.* ## The Confusion That Costs People the Most: AEP vs. Medigap Open Enrollment This is the single biggest point of confusion I see, and it can be an expensive one. Medicare’s Annual Enrollment Period (Oct 15–Dec 7) and Medigap Open Enrollment are two completely different things, governed by different rules. Medigap Open Enrollment is a one-time, 6-month window that starts the month your Medicare Part B coverage begins — not the month you turn 65, and not every fall. During that window, insurers must sell you any Medigap policy they offer at the standard rate, with no health questions and no denial for pre-existing conditions. Once that window closes, most states allow insurers to use medical underwriting, meaning they can charge you more, exclude pre-existing conditions, or deny you coverage outright based on your health. That distinction matters a lot if you’re considering switching from a Medicare Advantage plan back to Original Medicare plus a Medigap policy during this fall’s AEP. You can generally make that switch during AEP without issue on the Medicare Advantage side — but picking up a *new* Medigap policy outside your original 6-month window can trigger medical underwriting in most states, meaning a health condition could result in a higher premium or an outright denial. A handful of states (including California, New York, and Connecticut) offer additional guaranteed-issue protections, but they’re the exception, not the rule. **Example — Robert**, 68, has had a Medicare Advantage plan since he turned 65. During this year’s AEP, several of his specialists left his plan’s network, and under the new rule, that alone qualifies him for a Special Enrollment Period. He wants to switch to Original Medicare plus a Medigap plan, but because his one-time 6-month Medigap window closed three years ago, he’ll likely face medical underwriting for a new Medigap policy — something he didn’t realize until he started shopping. **Example — Linda**, 66, is happy with her current Part D plan but decides to check anyway during AEP. Her plan’s formulary changed for 2027, moving one of her regular medications to a higher cost tier — a shift that would have cost her several hundred dollars over the year if she hadn’t compared options and switched to a plan that still covers it affordably. ## What to Actually Check This Fall Start with your Annual Notice of Change, which every Medicare Advantage and Part D plan is required to mail by the end of September — it lists exactly what’s changing about your specific plan for 2027. Compare your current plan’s premium, deductible, and total out-of-pocket maximum against at least one or two alternatives using the [Medicare Plan Finder](https://www.medicare.gov/plan-compare/) at Medicare.gov, since premiums alone don’t tell the whole cost story. Confirm your doctors and preferred pharmacy are still in-network for whatever plan you choose, and check your specific medications against each plan’s drug formulary rather than assuming coverage carries over. If you’re on a Medicare Advantage plan and considering Original Medicare with a Medigap policy, get clarity on your state’s underwriting rules before assuming the switch will be smooth. It’s also worth checking whether your plan still offers non-medical extras like a grocery or food allowance — see my guide to [Medicare Advantage grocery benefits and how they’re changing for 2027](https://savingtoinvest.com/grocery-benefits-under-medicare-advantage-and-snap-for-seniors/) for what’s tightening this year. For a broader look at what happens if your specific plan is discontinued rather than just changed, see my guide to [Medicare Advantage plan exits for 2027](https://savingtoinvest.com/medicare-advantage-plan-exits-2027/). If your income is limited, it’s also worth checking whether you qualify for [Medicare Extra Help](https://savingtoinvest.com/medicare-extra-help-part-d-low-income-subsidy/), which can eliminate your Part D deductible and cap copays regardless of which plan you choose during AEP. And since Medicare Part B premiums are usually deducted directly from your Social Security check, it’s worth reviewing my [Social Security COLA guide](https://savingtoinvest.com/social-security-tax-and-cost-of-living-adjustment-cola/) alongside your plan comparison to see how the two numbers interact for 2027. ## Common Issues to Watch Out For I hear the same handful of mix-ups from readers every fall, so here’s what trips people up most. **Assuming AEP and Medigap Open Enrollment are the same window.** They’re governed by entirely different rules — AEP is annual and universal, while Medigap Open Enrollment is a one-time 6-month window tied to when your Part B started. Confusing the two can lead to an unpleasant underwriting surprise. **Assuming a new health diagnosis creates extra flexibility.** A serious diagnosis during the year doesn’t extend or reopen your Medigap window, and it doesn’t change AEP’s fixed October 15–December 7 dates — special circumstances generally require a qualifying life event (like moving or losing employer coverage), not a change in health status alone. **Ignoring the Annual Notice of Change because “my plan was fine last year.”** Formularies, networks, and cost-sharing can all shift year to year even when your premium looks unchanged — the notice is the fastest way to catch a change that affects you specifically. **Not checking whether a network departure now qualifies for a Special Enrollment Period.** Under the new rule, an individual doctor leaving your network can be enough on its own — a right that didn’t clearly exist before this rule change, so it’s worth asking your plan directly if you’ve lost access to a provider. **Being caught off guard by increased marketing volume.** With marketing restrictions loosening October 1, 2026, expect more calls and mail than in past years — legitimate outreach from your own plan is normal, but never give personal or Medicare information to an unsolicited caller you can’t independently verify. ## Looking Ahead: What to Watch After This AEP A separate window — the Medicare Advantage Open Enrollment Period, running January 1 through March 31, 2027 — gives Medicare Advantage enrollees one additional opportunity to switch plans or return to Original Medicare if their AEP choice doesn’t turn out to work well. It’s more limited than AEP (no switching into Medicare Advantage from Original Medicare during this window), but it’s a real second chance if a new plan’s network or formulary turns out to be a problem once you actually start using it. I’m also watching how the loosened marketing rules play out in practice this fall — a heavier volume of outreach can make it harder to distinguish legitimate plan communications from aggressive sales tactics, and it’s a dynamic CMS may revisit in future years depending on how the 2027 season goes. I’ll update this page as more 2027 plan specifics become available closer to October 15. Veterans juggling Medicare alongside VA benefits should also double-check how the two interact — see my [VA disability compensation guide](https://savingtoinvest.com/va-disability-compensation-rates/) for the current payout tables, since VA and Medicare coverage decisions are made independently of each other. Frequently Asked Questions QWhen is Medicare Open Enrollment for 2027? AMedicare's Annual Enrollment Period (AEP) runs October 15 through December 7, 2026. Any changes you make take effect January 1, 2027. QWhat's different about Medicare Open Enrollment for 2027? ACMS eliminated the 'significance' threshold for provider network departures, so losing access to even one doctor can now trigger a Special Enrollment Period. Marketing restrictions on insurers and agents also loosen starting October 1, 2026, and the Part D $2,400 out-of-pocket cap becomes a permanent program feature. QIs Medicare Open Enrollment the same as Medigap Open Enrollment? ANo, and confusing the two is a costly mistake. AEP is an annual window for changing Medicare Advantage or Part D coverage. Medigap Open Enrollment is a one-time, 6-month window tied to when your Part B coverage started, during which insurers can't deny you a policy or charge more based on your health. Outside that window, most states allow medical underwriting for a new Medigap policy. QWhat if my doctor leaves my Medicare Advantage plan's network? AUnder the rule change taking effect for 2027, an individual provider leaving your plan's network can qualify you for a Special Enrollment Period on its own, without needing to meet the older 'significant' network-change threshold. QDo I have to do anything during Open Enrollment if I'm happy with my plan? ANot technically - your coverage will generally continue automatically if you take no action. But premiums, drug formularies, and provider networks can all change for 2027 even if you don't switch, so reviewing your Annual Notice of Change is worth the time regardless. QWhat is the Medicare Advantage Open Enrollment Period? AA separate window running January 1 through March 31 each year, allowing Medicare Advantage enrollees one additional plan switch or a return to Original Medicare if their AEP choice isn't working out. It doesn't allow switching from Original Medicare into Medicare Advantage. QWhere can I compare Medicare plans for 2027? AUse the official Medicare Plan Finder at Medicare.gov to compare premiums, deductibles, drug formularies, and provider networks across plans available in your area. **Categories:** Taxes and Retirement --- ### [Negotiating Your Severance Package in 2026: State Rules, Shrinking Payouts, and What to Ask For](https://savingtoinvest.com/being-laid-off-negotiate-that-severance-package/) **Published:** December 29, 2010 **Author:** Andy **Content:** ### Key Takeaways - Severance isn't legally required in 48 states. Only New Jersey (1 week of pay per year of service, up to 26 weeks) and Maine (mass layoffs of 100+ workers) mandate it by law. - Median severance has dropped to roughly 10-14 weeks in 2026, down from a 2023 peak near 19 weeks - packages are getting leaner, so it pays to push back. - Whether severance delays your unemployment benefits depends entirely on your state. California, Illinois, Michigan, Georgia, and North Carolina generally don't count it against you; Florida, Texas, Pennsylvania, and Ohio can reduce or delay your claim. - A lump-sum severance payment is usually treated more favorably for unemployment purposes than salary-continuation (installment) pay, in almost every state that draws a distinction. - If you're 40 or older, federal law gives you at least 21 days to review an individual severance offer (45 days for a group layoff) plus a 7-day window to revoke your signature. - Cash isn't the only lever - COBRA subsidy length, outplacement services, unused PTO payout, and equity acceleration are all commonly negotiable too. No federal law requires your employer to pay you a dime of severance when you’re laid off. Only two states — New Jersey and Maine — mandate it at all, and only in specific mass-layoff situations. Everywhere else, severance is 100% a negotiation, which is exactly why so many people leave money on the table. That matters more in 2026 than it did a few years ago. Severance packages are actually shrinking — down 15-20% from their 2023 peak — at the same time mass layoffs, especially AI-driven ones, are becoming more common. Knowing your state’s rules and what’s actually negotiable is worth real money. If you can see a layoff coming, pair this with a broader financial plan — see [preparing for layoffs: steps to take ahead of time](https://savingtoinvest.com/tips-on-preparing-for-potential-job/) — so you’re negotiating from a position of strength rather than scrambling after the fact. Covered in this Article: [Toggle](#) - [Why Your Employer Is Often Willing to Negotiate](#Why_Your_Employer_Is_Often_Willing_to_Negotiate) - [Is Severance Pay Required by Law? The Short Answer Is Almost Never](#Is_Severance_Pay_Required_by_Law_The_Short_Answer_Is_Almost_Never) - [WARN Notice Rules and Unemployment Overlap: Top 10 States](#WARN_Notice_Rules_and_Unemployment_Overlap_Top_10_States) - [Current Trends: Packages Are Getting Leaner, Even as Layoffs Grow](#Current_Trends_Packages_Are_Getting_Leaner_Even_as_Layoffs_Grow) - [What Should Be in Your Severance Package](#What_Should_Be_in_Your_Severance_Package) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: What Could Change](#Looking_Ahead_What_Could_Change) - [Hold Your Head High](#Hold_Your_Head_High) ## Why Your Employer Is Often Willing to Negotiate Your employer has no obligation to offer you anything when you leave — provided you weren’t let go for cause. But it’s often in their interest to offer something anyway. Companies don’t want a departing employee bad-mouthing them publicly, walking straight to a competitor with sensitive information, or filing a wrongful-termination suit. A signed severance agreement — which almost always includes a legal release of claims — buys them a clean, quiet exit. If you’re part of a mass layoff, you’ll usually have less individual leverage since a standard package tends to go to everyone at once. It’s still worth asking. The extra cash, or a longer COBRA subsidy, can matter a lot during a job search. ## Is Severance Pay Required by Law? The Short Answer Is Almost Never Here’s the part most people get wrong: severance is not a legal entitlement in the vast majority of the country. The U.S. Department of Labor is explicit that severance pay is “a matter of agreement between an employer and an employee” — there’s no federal mandate under the Fair Labor Standards Act. **New Jersey (NJ)** is the one true outlier. Its state WARN Act requires covered employers conducting a mass layoff or plant closing to pay one week of severance for every year of service, up to 26 weeks — a real, enforceable mandate, not just a notice requirement. **Maine** requires severance (also roughly one week per year of service) for plant closings affecting 100 or more employees. **Massachusetts and Rhode Island** have narrower “tin parachute” laws that trigger severance specifically when a termination follows a change in corporate control, not a general layoff. Everywhere else — including every other state in the top 10 by population — severance is discretionary. That doesn’t mean it’s rare; it means it’s negotiable, and the negotiation is where you have power. ## WARN Notice Rules and Unemployment Overlap: Top 10 States Two separate things get confused constantly: whether you’re entitled to advance notice of a layoff (WARN Act), and whether severance pay affects your unemployment benefits. They’re governed by completely different rules, and both vary heavily by state. StateWARN / Mini-WARN Notice ThresholdSeverance Legally Required?Effect on Unemployment BenefitsCalifornia (CA)75+ employees, 60 days (Cal-WARN)NoGenerally no offset — lump-sum severance isn’t treated as disqualifying wagesTexas (TX)Federal WARN only: 100+ employees, 60 daysNoCan delay or reduce benefits if severance is allocated to specific weeksFlorida (FL)Federal WARN only: 100+ employees, 60 daysNoDisqualifies you for weeks equal to severance ÷ your average weekly wage; installment pay can extend the disqualification furtherNew York (NY)50+ employees, 90 days (stricter than federal)NoNo effect if paid as a lump sum not contingent on continued servicePennsylvania (PA)Federal WARN only: 100+ employees, 60 daysNo“40% rule” — only severance above 40% of the state’s average annual wage ($28,153.63 for 2026) is deductible from benefitsIllinois (IL)75+ employees (lower than the federal 100-employee threshold)NoGenerally not treated as disqualifying incomeOhio (OH)Federal WARN only: 100+ employees, 60 daysNo20% of your weekly benefit amount is disregarded before any severance-related deduction appliesGeorgia (GA)Federal WARN only: 100+ employees, 60 daysNo“Permissive” state — you can typically file the day after your last day and collect bothNorth Carolina (NC)Federal WARN only: 100+ employees, 60 daysNoLump-sum separation pay is excluded; periodic payments may offset benefitsMichigan (MI)Federal WARN only: 100+ employees, 60 daysNoNot treated as disqualifying income A pattern worth noticing: in nearly every state that draws a distinction, a **lump-sum** payment is the safer choice for your unemployment eligibility. Salary-continuation severance (getting paid your normal check for X more weeks/months) is more likely to be treated as ongoing wages that offset your weekly benefit. Before you sign anything, check with your own state’s unemployment agency — rules like Pennsylvania’s 40% threshold and Ohio’s 20% disregard get updated periodically, and I’ll update this table as new numbers come out. See [maximum weekly unemployment benefits by state](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/) for the benefit-amount side of the equation. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates as state severance and unemployment rules change.* ## Current Trends: Packages Are Getting Leaner, Even as Layoffs Grow Severance generosity spiked hard between 2020 and 2025 — average packages rose roughly 75%, from about 11 weeks to 19.3 weeks across industries, largely a hangover from pandemic-era labor shortages and a tight hiring market. That trend has reversed in 2026. Packages are down 15-20% this year. Median tech severance sits around 10 weeks in 2026, down from 14 in 2023, and COBRA subsidy periods have shrunk from an average of 6 months to roughly 3. The standard formula most employers still use is one to two weeks of base pay per year of service, with executives sometimes getting a month per year or a flat 3-12 months. A lot of this year’s layoffs are tied to AI-driven restructuring rather than a weak economy — companies cutting headcount from a position of financial strength, not distress. I wrote about one example, a fintech company cutting 40% of its workforce while reporting record profits, in my [tech layoffs and AI shift guide](https://savingtoinvest.com/tech-layoffs-and-the-ai-shift-what-ongoing-job-cuts-mean-for-your-career-and-wallet/) — worth a read if you want the fuller picture on where this trend is headed. If you’re in manufacturing, the story is different but just as real: tariffs, not AI, are the bigger factor. Manufacturing employment fell by roughly 89,000 jobs between April 2025 and February 2026, and Whirlpool cut about 350 factory jobs in Iowa in March 2026 as tariff-driven cost pressure squeezed margins. The Yale Budget Lab estimates tariffs could add as much as 0.7 percentage points to the unemployment rate. Either way — AI or tariffs — the severance-negotiation and unemployment-filing steps below apply the same way. ## What Should Be in Your Severance Package There’s no universal template, but most packages built around these components: **Compensation.** One to two weeks of pay per year of service is standard; upper management and specialized roles can push higher. If your field is narrow enough that a new job search will take a while, that’s your argument for a bigger number — four weeks per year worked is a strong outcome. **Health insurance.** COBRA is expensive once you’re paying the full premium yourself. Push for your employer to cover it for a set period — 18 months, or until you start a new job, whichever comes first, is a genuine win. See the [DOL’s COBRA continuation coverage page](https://www.dol.gov/general/topic/health-plans/cobra) for how the program itself works. **Outplacement services and references.** Ask to help draft your own reference letter so your accomplishments are represented accurately. Many employers will also pay for outplacement services — resume help, career coaching, and job-search support — that can meaningfully shorten your search. **Equipment and perks.** If you were issued a laptop or other equipment, ask to keep it, at least through your job search. It’s a minor point in the negotiation but an easy one to win. **The announcement.** Negotiate the wording and timing of how your departure is communicated internally and externally. This is what follows you into your next interview, so it’s worth getting right. ## Common Issues to Watch Out For I get questions about severance timing and taxes constantly, so a few things worth flagging before you sign anything. **Don’t assume your state treats severance the way a neighboring state does.** The differences above (Florida’s disqualification math versus California’s no-offset rule, for example) are large enough to change your filing strategy for unemployment. **Lump sum versus installments isn’t just a tax question — it affects your unemployment claim.** Ask your HR contact directly how the payment will be structured before you sign, not after. **Don’t sign on day one.** If you’re 40 or older, you’re entitled to a real review period under the [Older Workers Benefit Protection Act](https://www.eeoc.gov/history/older-workers-benefit-protection-act-1990) — 21 days for an individual agreement, 45 days if it’s a group layoff — plus a 7-day window to revoke your signature after you sign. **Severance is still taxable income.** It’s subject to federal and state income tax and, in most cases, FICA, the same as your regular paycheck — budget accordingly rather than treating the full number as spendable cash. **File for unemployment right away regardless of your severance size.** In most states, applying doesn’t cost you anything even if a lump-sum disqualification period applies — the clock often starts from your separation date either way. ## Looking Ahead: What Could Change Congress is currently considering the Fair Warning Act (H.R. 5761), which would rewrite the federal WARN Act for the first time since 1988 — lower employee-count triggers, longer notice periods, and stronger enforcement. It hasn’t passed as of mid-2026, but it’s a response to a real trend: WARN notices spiked sharply in late 2025, with more than 39,000 workers notified in October alone. More states have also been toughening their own mini-WARN laws recently, often with lower thresholds than the federal 100-employee trigger — California’s 75-employee threshold and Illinois’s are both examples already in effect. I’d expect more states to follow that pattern rather than loosen it. On the severance-amount side, watch whether the 2026 pullback in package size continues into 2027 or was a one-year correction. If AI-driven restructuring keeps accelerating the way it has in 2026, it could push in either direction — leaner packages if companies are cutting costs aggressively, or richer ones if public pressure and legislation like the Fair Warning Act raise the cost of layoffs. I’ll update this page as the picture gets clearer. For more on preparing before a layoff hits, see [preparing for layoffs: steps to take ahead of time](https://savingtoinvest.com/tips-on-preparing-for-potential-job/) and, if you’re worried your specific role is at risk, [10 red flags that your job is on the AI chopping block](https://savingtoinvest.com/10-red-flags-that-your-job-on-the-ai-chopping-block/). ## Hold Your Head High Layoffs happen to a lot of good people, and they’re usually a business decision, not a personal one. Treat the severance conversation like any other negotiation — know your state’s rules, know what’s actually on the table beyond cash, and don’t sign the first offer out of anxiety to be done with it. Frequently Asked Questions QIs my employer legally required to give me severance pay? AIn 48 states, no. Only New Jersey (one week of pay per year of service, up to 26 weeks) and Maine (mass layoffs of 100+ workers) have laws requiring severance in specific circumstances. Everywhere else, it's a matter of negotiation between you and your employer. QHow many weeks of severance is typical in 2026? AThe 2026 median is roughly 10 to 14 weeks of pay, down from a 2023 peak near 19 weeks. Headline tech layoffs can still involve packages of 14-24 weeks depending on the company and your tenure, but the broader average has been shrinking. QWill taking severance affect my unemployment benefits? AIt depends entirely on your state. California, Illinois, Michigan, Georgia, and North Carolina generally don't count lump-sum severance against your unemployment eligibility, while Florida, Texas, Pennsylvania, and Ohio can reduce or delay your weekly benefit depending on how the payment is structured. QShould I ask for a lump sum or salary continuation? AA lump-sum payment is usually better for your unemployment eligibility in most states that draw a distinction, since installment or continuation pay is more likely to be treated as ongoing wages that offset your weekly benefit. Check your specific state's rule before deciding, since your preference may also depend on tax timing. QHow long do I have to review a severance agreement before signing? AIf you're 40 or older, the Older Workers Benefit Protection Act generally requires at least 21 days to consider an individual severance offer, or 45 days for a group layoff, plus a 7-day window to revoke your signature after you sign. QWhat should I negotiate besides the severance amount itself? AHealth insurance continuation (how long your employer covers COBRA), outplacement services, unused PTO payout, equity vesting acceleration, and the wording of your reference and departure announcement are all commonly negotiable alongside the check itself. QIs severance pay taxable? AYes. Severance is generally subject to federal and state income tax and FICA just like a regular paycheck, so don't budget the full gross amount as spendable cash. **Categories:** Career and Relationships **Tags:** employer, Fired, health insurance, jobs, Lay off, Severance --- ### [2026–2027 Updates: Child Tax Credit (CTC) and Kiddie Tax — Thresholds, Eligibility, and OBBBA Changes](https://savingtoinvest.com/child-and-kiddie-tax-credit-and-income-thresholds/) **Published:** December 24, 2010 **Author:** Andy **Content:** ### Key Takeaways - The Child Tax Credit (CTC) is $2,200 per qualifying child for the 2026 tax year (returns filed in 2027), unchanged from 2025 - the OBBBA made it inflation-indexed, but the increase isn't large enough to trigger the $100 rounding increment yet. - The refundable Additional Child Tax Credit (ACTC) is capped at $1,700 per child for 2026, and requires at least $2,500 in earned income to claim. - Starting with the 2025 tax year, the parent or guardian claiming the credit must have a valid Social Security Number (SSN) - a new OBBBA requirement that affects some mixed-status families. - The kiddie tax threshold for 2026 is $2,700: the first $1,350 of unearned income is sheltered, the next $1,350 is taxed at the child's rate, and anything above $2,700 is taxed at the parent's (usually higher) rate. - The phase-out for the full CTC begins at $200,000 (single) / $400,000 (married filing jointly) and eliminates the credit entirely at $240,000 / $440,000. The Child Tax Credit (CTC) is $2,200 per qualifying child for the 2026 tax year, following the One Big Beautiful Bill (OBBB) signed in 2025. That $200 increase from the prior $2,000 level is now locked in permanently and indexed for inflation going forward. For most families, not much has changed dollar-for-dollar from 2025 to 2026 — but the structural rules are different, particularly the new SSN requirement for the person claiming the credit. Here’s what matters right now. Covered in this Article: [Toggle](#) - [Key Changes to the Child Tax Credit (CTC) Under the OBBBA](#Key_Changes_to_the_Child_Tax_Credit_CTC_Under_the_OBBBA) - [2026 CTC: Amounts, Refundable Portion, and Phase-Outs](#2026_CTC_Amounts_Refundable_Portion_and_Phase-Outs) - [Child Tax Credit — Historical Table](#Child_Tax_Credit_%E2%80%94_Historical_Table) - [CTC Qualification Rules](#CTC_Qualification_Rules) - [CTC, ACTC, and ODC — What’s the Difference?](#CTC_ACTC_and_ODC_%E2%80%94_Whats_the_Difference) - [2026 Kiddie Tax: Unearned Income Thresholds](#2026_Kiddie_Tax_Unearned_Income_Thresholds) - [EITC and ACTC Refund Delays (PATH Act)](#EITC_and_ACTC_Refund_Delays_PATH_Act) - [State Child Tax Credits](#State_Child_Tax_Credits) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) ## Key Changes to the Child Tax Credit (CTC) Under the OBBBA The OBBBA made several permanent changes to the CTC starting with the 2025 tax year: **The credit is now $2,200 per qualifying child.** That’s up from $2,000 under the old TCJA rules. It covers children under 17, same as before. **The credit is now inflation-indexed.** Starting in 2026, the IRS adjusts the CTC amount annually for inflation, rounded to the nearest $100. For 2026, the base is still $2,200 — inflation hasn’t been sufficient to push it to $2,300 yet. The 2027 amount will depend on 2026 price data (more on that in the outlook section below). **A new SSN requirement for claimants.** Beginning with 2025 tax returns, the taxpayer claiming the CTC — or at least one spouse if filing jointly — must have a valid Social Security Number. Previously only the child needed an SSN. This is a meaningful change for mixed-status households where children are U.S. citizens but one or both parents are not. ## 2026 CTC: Amounts, Refundable Portion, and Phase-Outs For the 2026 tax year, here’s the full picture: - **Earned Income Requirement**: You must have at least $2,500 in earned income (wages, self-employment) to claim any portion of the credit. - **Maximum Credit**: $2,200 per qualifying child (non-refundable portion, applied against your tax liability first). - **Additional Child Tax Credit (ACTC)**: The refundable portion is up to **$1,700 per child**. You qualify for the ACTC at 15% of earned income above $2,500, up to the $1,700 per-child cap. - **Phase-Out Thresholds**: The credit begins to reduce for modified AGI (MAGI) above $200,000 (single/HOH) or $400,000 (married filing jointly). It phases out at $50 for every $1,000 of income above those thresholds. The phase-out thresholds are set by statute and are NOT inflation-indexed, so they don’t change year to year. ## Child Tax Credit — Historical Table Tax YearMax CTC Per ChildRefundable Cap (ACTC)Phase-Out Starts (Joint / Other)2026$2,200$1,700$400,000 / $200,0002025$2,200$1,700$400,000 / $200,0002024$2,000$1,700$400,000 / $200,0002023$2,000$1,600$400,000 / $200,0002022$2,000$1,500$400,000 / $200,0002021 (ARPA expanded)$3,000–$3,600Fully refundable$150,000 / $75,000 The 2021 ARPA expansion that temporarily raised the credit to $3,000–$3,600 per child and paid it monthly is long expired. The OBBBA did not restore advance monthly payments — you claim it on your annual tax return. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates as 2026 tax guidance comes in.* ## CTC Qualification Rules To claim the Child Tax Credit, the child must meet all of the following tests: 1. **Age**: Under 17 at the end of the tax year (16 or younger). 2. **Relationship**: Your son, daughter, stepchild, foster child, sibling, step-sibling, or a descendant of any of these (grandchild, niece/nephew). An adopted child is always treated as your own. 3. **Support**: The child didn’t provide more than half their own financial support during the year. 4. **Dependent**: You claim the child as a dependent on your return — no one else can. 5. **Citizenship**: The child must be a U.S. citizen, U.S. national, or U.S. resident alien. 6. **Residence**: The child lived with you for more than half the year. If two taxpayers claim the same child, it causes delays for both. 7. **SSN (claimant)**: Starting 2025, you (or your spouse if filing jointly) need a valid SSN. The child still needs an SSN as well. Income limits from the table above also apply. The credit is further limited by your actual tax liability and any Alternative Minimum Tax (AMT) you owe. ## CTC, ACTC, and ODC — What’s the Difference? These three credits are related but distinct, and understanding which one you’re getting matters. **CTC ($2,200)** is the full credit, but it’s non-refundable in the traditional sense — it can only offset your federal tax liability. If you owe nothing, you can’t get the CTC as a payment. **ACTC (up to $1,700)** is the refundable piece. If your CTC exceeds your tax bill, you can still receive a refund through the ACTC — equal to 15% of your earned income above $2,500, per child, up to $1,700 per child. **Example — Mark and Lisa**, married filing jointly with two children, earned $85,000. They owe $4,800 in federal taxes. Their CTC is $4,400 (2 × $2,200). The full $4,400 applies against their tax bill, bringing it to $400 owed. No ACTC is needed since the credit didn’t exceed their liability. **Example — Sarah**, a single mother with two children, earns $24,500 and has no tax liability. She can’t use the non-refundable CTC. But her ACTC = 15% × ($24,500 − $2,500) × 2 kids = 15% × $22,000 = $3,300. That’s capped at $1,700 per child × 2 = $3,400 max. So she gets a refund of $3,300 as ACTC. **ODC ($500)** covers dependents who don’t qualify for the CTC — like a college student over 17 or an elderly parent you’re supporting. It’s non-refundable and phases out at the same income thresholds ($200K/$400K). You can also claim the Child and Dependent Care Tax Credit (CDCTC) alongside the CTC — they’re separate credits for separate purposes (care costs vs. having a qualifying child). ## 2026 Kiddie Tax: Unearned Income Thresholds The kiddie tax is separate from the Child Tax Credit — it’s the rule that taxes a child’s investment income (dividends, interest, capital gains) at the parent’s higher marginal rate once it crosses a threshold. For 2026, the rules are the same as 2025: - **First $1,350** of unearned income: Tax-free (covered by the dependent’s standard deduction) - **Next $1,350** (income from $1,350 to $2,700): Taxed at the child’s own rate - **Over $2,700**: Taxed at the parent’s marginal tax rate This applies to children who are: - Under 19 at year-end, OR - Full-time students between 19 and 23, AND - Whose earned income doesn’t exceed half their support A child who earns more than $2,700 in unearned income and meets the above criteria needs to file [Form 8615](https://www.irs.gov/instructions/i8615) with their tax return. **Example — Emma**, age 15, received $3,500 in stock dividends from a custodial account her parents funded. The first $1,350 is sheltered. The next $1,350 is taxed at Emma’s rate (likely 10–12%). The remaining $800 is taxed at her parents’ top marginal rate — say 22%. Without the kiddie tax, all $3,500 would be taxed at Emma’s low rate. Parents who gift appreciated assets to kids to exploit lower rates often run into this rule. The kiddie tax does NOT apply once a child is 19 and not a student, or once they are 24 regardless of student status. ## EITC and ACTC Refund Delays (PATH Act) If you claim the [Earned Income Tax Credit (EITC)](https://savingtoinvest.com/earned-income-tax-credit-eitc-qualification-and-income-threshold-limits/) or the ACTC, the IRS is legally required to hold your entire refund until mid-February — even the non-EITC/ACTC portion. This is mandated by the PATH Act, an anti-fraud safeguard. It applies every year. Your refund freeze affects the [refund schedule](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) for the whole return, not just the credit portion. You can track it on your [IRS transcript](https://savingtoinvest.com/processing-dates-to-get-my-refund-payment-dates/) once processing begins. ## State Child Tax Credits Several states have their own CTC on top of the federal credit. Qualifying criteria vary by state — federal CTC eligibility doesn’t automatically grant you a state CTC. Check your state’s department of revenue website and look for a state-level child tax credit line on your state return. ## Common Issues to Watch Out For **1. Parent SSN requirement trips up mixed-status families.** I get questions about this a lot. If you’re filing jointly and one spouse doesn’t have an SSN, neither of you can claim the CTC under the new OBBBA rule. This wasn’t required before 2025. Some families who previously qualified no longer do. **2. Confusing CTC with ACTC.** The $2,200 is the maximum — but you only get cash back (a refund) through the ACTC, which is capped at $1,700 and requires earned income. If you have no tax liability AND very low earned income (under $2,500), you get nothing. **3. The $2,500 earned income floor matters more than people think.** If you earn $2,499, you get zero CTC. At $2,501, you start phasing in. The pandemic waived this requirement in 2020–2021. It’s fully back now. **4. The kiddie tax catches parents who fund custodial accounts too generously.** A $10,000 stock account paying 5% in dividends generates $500 in unearned income — well under the threshold. But a $100,000 account generating $5,000 in dividends means $2,300 is taxed at the parents’ rate, not the child’s. If you’re building a custodial account, keep this math in mind. **5. Dependent turning 17 during the tax year.** If your child turns 17 at any point during the year, they do not qualify for the CTC that year. Not under 17 “at year end” means the whole credit is gone. I see this create confusion every filing season. ## Looking Ahead: 2027 Outlook The 2026 CTC is still $2,200 because the inflation adjustment hasn’t cleared the $100 rounding increment yet. For 2027, that depends on 2026 CPI data, which the IRS typically incorporates into a Revenue Procedure published in October or November 2026. Here’s what I’m watching: if 2026 inflation runs around 3–4%, the raw adjustment on $2,200 would be roughly $66–$88. That’s not enough to round up to $100, so the credit stays at $2,200. For it to hit $2,300 in 2027, you’d need cumulative inflation to push the adjustment over $50 — about 2.3% in annualized terms from the OBBBA base. The kiddie tax thresholds ($1,350 / $2,700) are also inflation-indexed and could tick up to $1,400 / $2,800 for 2027, depending on the same CPI data. Similarly likely to stay flat unless inflation is persistent. The ACTC refundable cap ($1,700) is also indexed, and the same logic applies. Separately, a handful of bills are circulating in Congress to go further than the OBBBA did — including proposals to broaden eligibility to more working families and Rep. Emilia Sykes’ H.R. 463, which would bring back monthly advance payments (around $350/month for kids under 6, $300/month for older kids). None of these are law, and I wouldn’t plan around them, but I’ll flag it here if one gains real traction. I’ll update this page when the IRS releases its 2027 adjustments. [Subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) when that happens. --- Frequently Asked Questions QWhat is the Child Tax Credit for 2026? AThe Child Tax Credit (CTC) is $2,200 per qualifying child for the 2026 tax year (returns filed in 2027). This is the same amount as 2025 - the One Big Beautiful Bill (OBBBA) raised it from $2,000 and made it inflation-indexed, but the increase hasn't been large enough to trigger the $100 rounding increment for 2026. QWhat is the refundable portion of the Child Tax Credit in 2026? AThe refundable portion is the Additional Child Tax Credit (ACTC), capped at $1,700 per qualifying child for 2026. You must have at least $2,500 in earned income to qualify, and the ACTC equals 15% of your earned income above $2,500, up to the $1,700 cap per child. QWho qualifies for the Child Tax Credit in 2026? AYou must have a qualifying child under age 17 at year-end, claim them as a dependent, and meet income requirements. Starting with 2025 tax returns, the taxpayer (or one spouse filing jointly) must also have a valid Social Security Number - a new OBBBA requirement. Income phase-outs begin at $200,000 for single filers and $400,000 for married couples filing jointly. QWhat is the kiddie tax and what is the threshold for 2026? AThe kiddie tax is the rule that taxes a child's unearned income (dividends, interest, capital gains) at the parent's higher marginal rate once it exceeds $2,700 for 2026. The first $1,350 is tax-free, the next $1,350 is taxed at the child's rate, and anything above $2,700 is taxed at the parents' rate. It applies to children under 19, and to full-time students under 24. QWhat's the difference between the CTC and ACTC? AThe CTC ($2,200) is non-refundable - it can only offset your federal tax liability. If the CTC exceeds what you owe, the remaining amount doesn't automatically come back to you as a refund. The ACTC is the refundable piece, up to $1,700 per child, calculated as 15% of earned income above $2,500. If you have no tax liability, only the ACTC can result in a refund payment. QDoes the CTC delay my tax refund? AIf you claim the Additional Child Tax Credit (ACTC) or the Earned Income Tax Credit (EITC), the IRS must hold your entire refund until mid-February under the PATH Act. This applies to the whole refund, not just the credit portion. QWill the Child Tax Credit increase in 2027? APossibly, but only if 2026 inflation is large enough to trigger the $100 rounding increment. At current inflation rates (~3%), the raw adjustment on $2,200 would be about $66 - below the $50 threshold needed to round up. The IRS typically announces 2027 amounts in October or November 2026. **Categories:** Government Rebates and Payments **Tags:** 2011, 2012, 2013, ACTC, Child, Children, CTC, Tax Credit --- ### [Updated 2026-2027 State Unemployment Max-Min Benefits with Qualifying Wage Table](https://savingtoinvest.com/updated-2026-to-2027-state-unemployment-benefits-and-wage-table/) **Published:** March 28, 2026 **Author:** Andy **Content:** Here are the latest maximum and minimum unemployment payments for each state, including the minimum wage base earnings to qualify for these benefits. With a worsening economy and ongoing job losses, it its important to keep these unemployment benefits in mind. Always apply for benefits via your state’s official website ([see a full listing](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/)). [![](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2026/03/Gemini_Generated_Image_njd2wbnjd2wbnjd2.png?resize=820%2C448&ssl=1)](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2026/03/Gemini_Generated_Image_njd2wbnjd2wbnjd2.png?ssl=1)--- **State****Max. Weekly Benefit****Min. Weekly Benefit****Waiting Week?****Min. Earnings to Qualify****Alabama**$275$45Yes$1,157 (Total) + 2 Quarters**Alaska**$370 – $442$56Yes$2,500 (Total)**Arizona**$320$200Yes390x Min Wage in High Quarter**Arkansas**$451$81Yes35x Weekly Benefit Amount (WBA)**California**$450$40Yes$1,300 (High Quarter)**Colorado**$844$25Yes$2,500 (Total)**Connecticut**$721 – $826$15Yes40x WBA**Delaware**$450$20No36x WBA**D.C.**$444$50Yes$1,300 (HQ) + $1,950 (Total)**Florida**$275$32Yes$3,400 (Total)**Georgia**$365$55Yes$1,134 (HQ) + 1.5x HQ**Hawaii**$765$5Yes26x WBA**Idaho**$531$72Yes$1,872 (HQ) + 1.25x HQ**Illinois**$628 – $859$51Yes$1,600 (Total)**Indiana**$390$37Yes$4,200 (Total)**Iowa**$622 – $790$93No$2,500 (HQ) + $1,250 outside HQ**Kansas**$560$159Yes30x WBA**Kentucky**$569$39Yes$1,500 (HQ) + 1.5x HQ**Louisiana**$275$10Yes$1,200 (Total)**Maine**$521 – $781$93Yes6x State Avg Weekly Wage**Maryland**$430$50No$1,176 (HQ) + $1,800 (Total)**Massachusetts**$823 – $1,105$64Yes$6,300 (Total)**Michigan**$530 → $614 (Jan 2027)$81Yes$4,524 (Total)**Minnesota**$857 – $914$38Yes$3,500 (Total)**Mississippi**$235$30Yes$1,200 (HQ) + 40x WBA**Missouri**$320$35Yes$2,250 (Total)**Montana**$588$189Yes$3,390 (Total)**Nebraska**$526$30Yes$5,548 (Total)**Nevada**$469$16No$400 (HQ) + 1.5x HQ**New Hampshire**$427$32Yes$2,800 (Total)**New Jersey**$905$145Yes$310/wk for 20 wks (or $15,500)**New Mexico**$511$107Yes1.25x HQ Wages**New York**$504$116Yes$3,500 (HQ)**North Carolina**$600$15Yes$1,085 (Last 2 Quarters)**North Dakota**$786$43Yes1.5x HQ**Ohio**$624 – $842$167Yes$352/wk for 20+ wks**Oklahoma**$519$16Yes$1,500 (Total)**Oregon**$836$190Yes$1,000 (Total) + 500 hours**Pennsylvania**$605 – $613$68Yes$1,688 (HQ) + $3,391 (Total)**Puerto Rico**$240$33Yes$280 (HQ)**Rhode Island**$723 – $881$71Yes$16,800 (Total)**South Carolina**$350$42Yes$1,092 (HQ) + $4,455 (Total)**South Dakota**$532$28Yes$1,288 (HQ) + 1.25x HQ**Tennessee**$325$30Yes$780 (HQ)**Texas**$605$73Yes37x WBA**Utah**$777$40Yes$5,500 (Total)**Vermont**$729$74Yes$1,348 (HQ) + 1.5x HQ**Virginia**$430$112Yes$3,000 (Two High Quarters)**Washington**$1,152$343Yes680 hours worked**West Virginia**$662$24Yes$2,200 (Total)**Wisconsin**$370$54Yes$2,470 (Total)**Wyoming**$595$41Yes$4,200 (Total)#### **Summary of Most Critical Updates** in 2026 - **New York**: The state moved from a $504 cap (frozen since 2019) to $869 as part of the 2026 enacted budget. - **Michigan**: The jump from $362 in 2025 to $530 is part of a multi-year “catch-up” legislative plan — the max rises again to $614 on January 1, 2027, then indexes to CPI annually starting 2028. - **Iowa**: The FY2027 max climbed to $790/week (from $763) on July 5, 2026. - **Massachusetts:** Not only did the unemployment benefit increase, but the duration was extended to **30 weeks** due to state-specific economic triggers. - **The “1.5x Rule”:** Many states (like Nevada, New Jersey, and Ohio) use a formula where your total earnings must be at least 1.5 times what you earned in your highest-paid quarter. This is designed to ensure you were a “consistent” worker rather than someone who had one big payday. **Categories:** Taxes and Retirement --- ### [The AI Data Center Boom Is Rapidly Raising Your Electric Bill: What's Happening and What You Can Do](https://savingtoinvest.com/why-is-your-electric-bill-going-up-in-2026-what-data-centers-have-to-do-with-it/) **Published:** August 29, 2026 **Author:** Andy **Content:** ### Key Takeaways - Utilities requested $18.6 billion in rate increases in the first half of 2026 alone, and residential electricity rates are up 7.3% nationally over the past year. - Data centers could account for up to 15.3% of total U.S. electricity use by 2030, and a Consumer Reports survey found 78% of Americans are worried data centers are raising their own bills. - North Carolina, Ohio, Illinois, New York, and Virginia are seeing some of the most direct impact, from Duke Energy's 9.5% two-year residential increase in NC to a projected $70/month increase for Ohio families by 2028. - States including Virginia ($1.6 billion forfeited), Georgia ($2.5 billion expected), and Maryland gave data centers billions in sales and property tax exemptions to attract them - and lawmakers in several states are now moving to repeal those breaks. - The OBBB's permanent 100% bonus depreciation lets data center operators immediately write off new equipment on federal taxes, adding a federal tax layer to the buildout alongside the state-level breaks. - You can push back on your own bill: ask about budget billing, shop for a fixed-rate plan if you're in a deregulated market, apply for LIHEAP if income-eligible, and build a small savings buffer for seasonal spikes. - The EIA projects data center electricity demand continuing to climb through 2027, with more state legislative action on tax breaks and possible federal rate-protection bills expected. Utilities asked state regulators for **$18.6 billion** in electricity rate increases in just the first six months of 2026 — already more than half of all of 2025’s record $29 billion in requests, with the year not even over. Residential electricity rates are up **7.3%** nationally over the past year, and summer cooling costs are projected to climb another **10.5%**. A big piece of what’s driving this is the AI data center buildout. If you’ve watched your own bill creep up and wondered whether the massive server farms popping up outside your city have anything to do with it, in a growing number of places the answer is yes. Covered in this Article: [Toggle](#) - [The Rate-Hike Numbers Behind Your Bill](#The_Rate-Hike_Numbers_Behind_Your_Bill) - [Why Data Centers Are Part of the Story](#Why_Data_Centers_Are_Part_of_the_Story) - [Which States Are Feeling It Most](#Which_States_Are_Feeling_It_Most) - [The Tax Break Side of the Story](#The_Tax_Break_Side_of_the_Story) - [What You Can Actually Do About a Rising Electric Bill](#What_You_Can_Actually_Do_About_a_Rising_Electric_Bill) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) - [Common Questions and Mix-Ups I See](#Common_Questions_and_Mix-Ups_I_See) ## The Rate-Hike Numbers Behind Your Bill Here’s the scale of what’s happening nationally. Average residential electricity rates rose 7.3% between April 2025 and April 2026, according to a [Consumer Reports investigation into rising utility costs](https://www.consumerreports.org/data-centers/affordability-crisis-utility-bills-rate-hikes-profits-a6567329925/). Utilities requested a combined $18.6 billion in rate increases in the first half of 2026 alone. That pace puts 2026 on track to blow past 2025’s already-record $29 billion in rate-increase requests. The strain is showing up in household budgets — about 1 in 6 U.S. households were already behind on their utility bills entering 2026, and Americans could owe a combined **$25 billion** in unpaid electric and gas bills by the end of the year. None of this is happening in a vacuum. The same investor-owned utilities filing for these increases posted a combined $186 billion in profit between 2021 and 2024, keeping roughly 13 cents of every dollar customers paid. ## Why Data Centers Are Part of the Story Data centers could account for as much as **15.3%** of total U.S. electricity consumption by 2030, up from a small fraction just a few years ago — driven almost entirely by the computing power AI models need to run. A Consumer Reports survey found 78% of Americans are worried data centers are pushing their own electricity prices higher. The mechanism is fairly simple, even if it doesn’t feel that way looking at your bill. Most states still regulate electricity as a monopoly utility, meaning your provider recovers the cost of new power plants, transmission lines, and grid upgrades by spreading it across everyone’s rates — not just the customer whose demand made the upgrade necessary. When a utility builds new generation and transmission capacity specifically to serve one or two enormous data center customers, and that data center isn’t paying the full, dedicated cost of that buildout, the difference tends to land in the rates everyone else pays. Some states and utilities are now negotiating special contracts that shift more of that cost directly onto data center operators — but that protection isn’t universal yet, and where it doesn’t exist, households pick up the difference. ## Which States Are Feeling It Most The impact so far is uneven, concentrated in states with the heaviest data center buildout rather than spread evenly across the country. Regulators in North Carolina (NC) pushed back hard on Duke Energy Carolinas’ initial rate request, which started at an 18% increase and cited data center-driven demand as a factor. The utility ultimately settled at a 3.7% average increase, though residential customers specifically still face a 9.5% increase phased in over two years. In Ohio (OH), a report from the nonprofit Innovation Ohio projects the average Ohio family could pay roughly $70 more a month by 2028 as new data centers come online. Illinois (IL) has seen several Chicago-area suburbs put new data center proposals on hold after residents raised both bill and noise concerns. New York (NY) went furthest, enacting the first statewide moratorium on new hyperscale data center construction. Virginia (VA), long the largest data center market in the country — the “Data Center Alley” cluster around Loudoun County — continues to see the heaviest buildout of any state, with electricity demand and grid investment climbing to match. ## The Tax Break Side of the Story Here’s the part that doesn’t show up on your electric bill directly, but comes out of the same household budget. Many of these same states handed data center operators billions of dollars in tax breaks to attract them in the first place — mostly sales and use tax exemptions on servers and equipment, plus property tax abatements. Virginia forfeited an estimated $1.6 billion in tax revenue last year to its data center sales tax exemption, a 118% jump from the year before. Georgia (GA) expects to lose $2.5 billion this year to its own incentive program, a 664% increase over earlier estimates. Maryland’s (MD) exemption cost $22 million over four years, with $11 million of that in 2024 alone. That revenue doesn’t just disappear quietly. It’s money a state would otherwise put toward schools, roads, or other services, or that gets made up elsewhere in the tax code. Lawmakers in Michigan (MI), Maryland, Arizona (AZ), New York, Oklahoma (OK), and Vermont (VT) have all introduced bills this year to repeal or pause their data center tax exemptions, and Virginia is weighing changes of its own ([tracked by Stateline](https://stateline.org/2026/02/24/data-center-tax-breaks-are-on-the-chopping-block-in-some-states/)). There’s a federal layer to this too. The One Big Beautiful Bill (OBBB) permanently restored 100% bonus depreciation for equipment purchases, letting data center operators immediately write off the full cost of new servers and cooling systems on their federal taxes rather than depreciating them over several years. I cover what else changed for businesses and energy under the OBBB [in this breakdown](https://savingtoinvest.com/tax-changes-what-the-one-big-beautiful-bill-act-means-for-energy-and-business/) — bonus depreciation is one of the quieter tailwinds behind how fast this buildout is moving. This is a fast-moving story, with new rate cases filed and new state legislation introduced most months. I’ll keep this page updated as it develops — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What You Can Actually Do About a Rising Electric Bill None of this means you’re powerless on your own bill. A few things worth checking. **Ask about budget billing.** Most utilities offer a levelized payment plan that averages your annual usage into equal monthly payments, so one brutal summer or winter month doesn’t blow up a single bill. **Check if you’re in a deregulated market.** In states that let you choose your own electricity supplier, shopping around for a fixed-rate plan can lock in a rate before further increases hit. Your state’s public utility commission website will tell you whether you have that option. **Apply for LIHEAP if you qualify.** The Low Income Home Energy Assistance Program helps cover heating and cooling costs for lower-income households, and funding limits and how to apply vary by state — I cover [the full 2026 LIHEAP rundown here](https://savingtoinvest.com/state-energy-assistance-program-benefits-and-income-thresholds/). Weatherization assistance, which can lower your usage long-term, is often available through the same application. **Build a small buffer for seasonal spikes.** If your budget doesn’t have room to absorb a bad month, parking even a small cushion in a [high-yield savings account](https://savingtoinvest.com/i-bought-my-first-short-term-us-treasury-bill-for-a-better-return-than-cds-and-high-yield-savings-accounts/) earning real interest beats scrambling when a high bill lands. My [guide to fixing common budgeting mistakes](https://savingtoinvest.com/budgeting-pitfalls-and-remedies/) has more on building that kind of cushion without feeling like you’re just cutting everything. **Watch your state’s rate case docket.** Utility rate increases go through a public comment process before regulators approve them — that’s exactly how North Carolina’s request got cut from 18% down to 3.7%. Comment periods are usually posted on your state public utility commission’s website. ## Looking Ahead: 2027 Outlook A few things I’m watching heading into 2027. More state legislative sessions will take up data center tax break repeals when they reconvene in January. Virginia, Michigan, Georgia, and several others have this teed up as a fight for next year, and any changes there could shift who’s actually paying for the buildout. On the federal side, members of Congress including Senators Josh Hawley and Chris Van Hollen have introduced bills aimed at stopping data centers from shifting infrastructure costs onto residential ratepayers — worth watching whether either gains traction in 2027. Utility rate-case filings show no sign of slowing, and the [EIA’s Short-Term Energy Outlook](https://www.eia.gov/outlooks/steo/) projects data center demand continuing to push U.S. power use to new highs through the rest of 2026 and into 2027. I’ll update this page as new rate cases, state legislation, and federal proposals move through the pipeline, since this is a genuinely evolving picture rather than a settled one. If you’re weighing this against your own retirement income planning — especially if you’re on a fixed budget where Social Security is a big share of it — my [Social Security COLA tracker](https://savingtoinvest.com/social-security-tax-and-cost-of-living-adjustment-cola/) covers how much of any benefit increase is actually keeping pace with costs like this one. ## Common Questions and Mix-Ups I See A few things I hear from readers on this one. **“Isn’t this just inflation?”** Overall inflation is part of the story, but the 7.3% national rate increase is running well above general inflation, and utilities are specifically citing new generation and transmission investment — driven heavily by data center demand — as a factor in their rate filings, not just rising fuel or labor costs. **“Will switching electricity suppliers actually help?”** It can, but only for the “supply” portion of your bill — the electricity itself — not the “delivery” charges that pay for the wires and infrastructure, which stay regulated by your utility either way. Shopping for supply is worth doing in deregulated states, but it won’t offset delivery-charge increases tied to grid buildout. **“Is this only happening in a few states?”** It’s concentrated in states with heavy data center buildout right now — Virginia, Ohio, Georgia, and a handful of others — but the EIA projects data center electricity demand rising nationally through 2027, so more states are likely to see this show up in rate filings over time. **“Do the tax breaks directly cause my higher bill?”** Not directly — they’re two separate mechanisms. Tax exemptions reduce state and local revenue; rate increases go through your utility’s separate rate case process. But both trace back to the same data center buildout, and both ultimately draw on the same household and state budgets, just through different channels. **“Can I stop a data center from being built near me?”** Not usually as an individual, but organized local opposition has worked in some places — the Chicago-suburb moratoriums and New York’s statewide pause both followed sustained public pressure at planning commission and legislative hearings. Showing up to those public comment periods is where individual input actually carries weight. Frequently Asked Questions QWhy is my electric bill going up in 2026? AA combination of factors is driving it, but a major one is the AI data center boom. Utilities requested $18.6 billion in rate increases in just the first half of 2026, and much of the new spending is on power plants and grid upgrades built to serve massive data center electricity demand, with costs often spread across all ratepayers. QHow much have electricity rates actually increased? AResidential electricity rates rose 7.3% nationally between April 2025 and April 2026, and summer cooling costs are projected to climb another 10.5% on top of that. QWhich states are most affected by data center-driven electricity costs? AVirginia, Ohio, Georgia, North Carolina, and Illinois have seen some of the most direct impact so far, given their heavy data center buildout. New York has gone as far as enacting a statewide moratorium on new hyperscale data center construction. QDid my state give data centers tax breaks? AMany states did, mostly through sales and use tax exemptions on servers and equipment or property tax abatements. Virginia, Georgia, Maryland, Michigan, Arizona, New York, Oklahoma, and Vermont have all seen legislative action in 2026 either quantifying the cost of these breaks or moving to repeal or pause them - check your state legislature's website for the latest status. QCan I do anything to lower my own electric bill? AYes - ask your utility about budget billing to smooth out seasonal spikes, check whether you're in a deregulated market where you can shop for a fixed-rate supply plan, and apply for LIHEAP if you qualify on income. Weatherization assistance, often available through the same LIHEAP application, can lower your usage long-term. QWill switching electricity providers fix a data center-driven rate increase? AOnly partly. Switching suppliers in a deregulated market can lower the 'supply' portion of your bill, but the 'delivery' charges - the regulated infrastructure costs tied to grid buildout - stay the same regardless of which supplier you choose. QIs this expected to get better or worse in 2027? AThe EIA projects data center electricity demand continuing to rise through 2027, and more state legislatures are expected to take up tax break and rate-protection bills when they reconvene. Federal bills aimed at protecting residential ratepayers from data center-driven cost shifts have also been introduced, though it's unclear whether they'll pass. **Categories:** Taxes and Retirement --- ### [Continuing Disability Review: What It Actually Means If SSA Is Checking Your SSDI or SSI Again](https://savingtoinvest.com/continuing-disability-review-what-it-actually-means-if-ssa-is-checking-your-ssdi/) **Published:** August 30, 2026 **Author:** Andy **Content:** ### Key Takeaways - A Continuing Disability Review (CDR) is a periodic check the Social Security Administration (SSA) runs to confirm you still meet the medical definition of disability for SSDI or SSI. - Most people keep their benefits after a CDR - the vast majority of reviews find that a beneficiary is still unable to work, not the opposite. - Your review schedule depends on how likely SSA expects your condition to improve: roughly every 6-18 months if improvement is expected, about every 3 years if it's possible, and every 5-7 years if it's not expected at all. - SSA is shifting medical CDR processing from state Disability Determination Services (DDS) offices to a new in-house federal unit called Disability Case Review (DCR), a change announced in March 2026 that's still rolling out through the year. - You can typically complete a CDR online through your My Social Security account, though a mailed paper packet is still an option. - Missing the response deadline - not failing to show medical improvement - is the single biggest reason people lose benefits during a CDR. - If you disagree with a CDR decision, you have the right to appeal, and benefits generally continue during a timely appeal if you request that continuation within 10 days. Getting a letter that says Social Security is reviewing your disability case again can feel like the beginning of the end of your benefits. For most people, it isn’t. A Continuing Disability Review (CDR) is a routine, legally required check-in — not an accusation, and not a sign SSA thinks you’ve been dishonest. Here’s what actually happens during one, how SSA decides how often you get reviewed, and what actually puts your benefits at risk. Covered in this Article: [Toggle](#) - [What a Continuing Disability Review Actually Is](#What_a_Continuing_Disability_Review_Actually_Is) - [How SSA Decides How Often You Get Reviewed](#How_SSA_Decides_How_Often_You_Get_Reviewed) - [A Structural Change Underway: SSA Bringing Reviews In-House](#A_Structural_Change_Underway_SSA_Bringing_Reviews_In-House) - [What Actually Happens During a CDR](#What_Actually_Happens_During_a_CDR) - [What Actually Puts Your Benefits at Risk](#What_Actually_Puts_Your_Benefits_at_Risk) - [What to Do If You Disagree With a CDR Decision](#What_to_Do_If_You_Disagree_With_a_CDR_Decision) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: What to Watch](#Looking_Ahead_What_to_Watch) ## What a Continuing Disability Review Actually Is Congress requires SSA to periodically confirm that people receiving SSDI or SSI still meet the medical definition of disability. That check-in is the CDR. It applies to both programs, and it’s separate from SSA’s non-medical eligibility checks, like income and resource reviews for SSI or the [bank-verification system](https://savingtoinvest.com/ssi-maximum-payment-amounts/) SSA now uses to confirm SSI resource limits. The good news, statistically: most CDRs end with your benefits continuing unchanged. SSA’s own data consistently shows that the large majority of people reviewed are found unable to return to work — the review exists to catch the exceptions, not to assume everyone has recovered. ## How SSA Decides How Often You Get Reviewed When your claim is first approved, SSA assigns it an expected review cycle based on how likely your condition is to improve: - **Medical Improvement Expected (MIE):** Reviewed roughly every 6 to 18 months. This applies to conditions with a real chance of improving with treatment. - **Medical Improvement Possible (MPD):** Reviewed roughly every 3 years. This is the most common category for many chronic conditions. - **Medical Improvement Not Expected (MINE):** Reviewed roughly every 5 to 7 years. This applies to permanent, non-improving conditions — including many severe genetic or degenerative diagnoses, some of which also qualify for [Compassionate Allowances](https://savingtoinvest.com/social-securitys-compassionate-allowances-list-just-grew-to-314-conditions-does/) fast-track approval at the application stage. Your approval letter should state which category applies and roughly when your first review is expected, though some letters use vaguer language like “we will review your claim from time to time” instead of a specific year — which understandably leaves people unsure what to expect next. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) and I’ll update this page as SSA’s shift to in-house medical reviews continues to roll out.* ## A Structural Change Underway: SSA Bringing Reviews In-House In March 2026, SSA announced it’s transitioning processing of medical CDRs from state Disability Determination Services (DDS) offices to a new federal unit called Disability Case Review (DCR). The stated goal is tighter oversight, more consistency across states, and freeing up state DDS offices to focus on initial claims and reconsiderations — which SSA says has already helped cut its initial-claims backlog by more than a third since mid-2024. What this means for someone going through a CDR right now isn’t fully settled yet, since the transition is still rolling out state by state through 2026. It’s reasonable to expect some short-term inconsistency in how reviews are handled while the shift is underway, similar to other SSA modernization efforts. ## What Actually Happens During a CDR You’ll typically receive either a short-form or long-form review packet, depending on how complex your case is. The short form asks basic questions about your condition and whether it’s improved; the long form is more detailed and usually applies to more complex medical histories. Most CDRs can now be completed online through your My Social Security account, which several readers have found faster than the paper process — though a mailed paper packet remains available if you prefer it or don’t have reliable online access. You’ll be asked for your current treatment providers, medications, and — in many cases — a contact who can speak to your day-to-day functioning. **Example — Carla** has been on SSDI for major depressive disorder and PTSD for three years, categorized as Medical Improvement Possible. Her CDR packet asked for her current therapist’s and psychiatrist’s contact information, a list of medications, and a function report describing her daily limitations. Because she’d continued regular treatment and her symptoms hadn’t meaningfully changed, her benefits continued without issue about ten weeks after she submitted the packet. **Example — Dominic** has a permanent congenital condition classified as Medical Improvement Not Expected, with a review cycle of every 7 years. His CDR asked only for updated medical records confirming the diagnosis was unchanged — since his condition can’t improve by definition, the review was largely a documentation check rather than a functional reassessment. ## What Actually Puts Your Benefits at Risk Genuine medical improvement that lets you return to substantial work is the core standard SSA is checking for — but in practice, that’s not the most common reason people lose benefits during a CDR. Missing a deadline or failing to respond to a request for records is. If SSA’s system doesn’t show your CDR as received — which several readers have reported happening even after submitting online, particularly during periods of high claim volume — you can be at risk of a benefits termination for a non-response you believe you already handled. If you submit online, save the confirmation email and a PDF or screenshot of your completed form; if you’re ever told your CDR “wasn’t received,” having that documentation ready to resend (by fax or in person at your local field office) can resolve the issue far faster than waiting on hold. ## What to Do If You Disagree With a CDR Decision If SSA determines your disability has medically improved and moves to stop your benefits, you have the right to appeal. This is one of the few SSA decisions where a specific, time-sensitive step matters: if you request that your benefits continue during the appeal within **10 days** of the cessation notice, SSA is generally required to keep paying you while the appeal is decided — though if you ultimately lose the appeal, you may have to repay those continued benefits. For an overview of how SSA handles related benefit disputes, including the separate overpayment process, see my guide to [Social Security overpayment clawbacks](https://savingtoinvest.com/social-security-overpayment-clawback/). And if your CDR ultimately results in a new or increased award rather than a termination, my [SSDI back pay guide](https://savingtoinvest.com/ssdi-back-pay-how-it-works/) explains how retroactive payments work. ## Common Issues to Watch Out For I see the same handful of misunderstandings whenever a CDR notice comes up, so here’s what trips people up most. **Panicking that a CDR automatically means losing benefits.** The clear majority of reviews find no medical improvement and benefits simply continue — a CDR notice is a routine legal requirement, not evidence SSA suspects anything. **Missing the response deadline because the packet felt overwhelming.** A missed deadline is the single most common reason for a benefits termination during a CDR — even a partial, on-time response is better than letting the deadline pass while you gather everything. **Assuming online submission guarantees the packet was received.** A handful of readers have reported SSA’s system not showing an online CDR submission even after a confirmation email arrived — keep your confirmation and a saved copy of your answers in case you need to prove you submitted on time. **Not knowing about the 10-day window to continue benefits during an appeal.** If you disagree with a cessation decision, requesting continued benefits within 10 days is what keeps your payments flowing while the appeal is decided — miss that window and payments can stop even before the appeal concludes. **Assuming every condition gets reviewed on the same schedule.** Your review frequency depends on SSA’s expectation of medical improvement for your specific condition, not a single fixed rule — a permanent condition may not be reviewed again for 5 to 7 years, while one with a real chance of improving could be reviewed within a year or two. ## Looking Ahead: What to Watch I’m watching how SSA’s shift to in-house Disability Case Review processing affects actual CDR timelines and outcomes as the transition continues through 2026 and into 2027 — a more centralized process could mean more consistency across states, but transitions like this can also create short-term processing hiccups. I’ll update this page as more data on real-world review times becomes available. It’s also worth keeping an eye on SSA’s broader program-integrity push — the same initiative behind the Access to Financial Institutions (AFI) bank-verification system for SSI and the new [SSI Improvement Office](https://savingtoinvest.com/ssi-maximum-payment-amounts/) — since CDRs are part of that same larger effort to reduce improper payments while speeding up legitimate claims. These changes tend to move in step with SSA’s annual [COLA adjustments](https://savingtoinvest.com/social-security-tax-and-cost-of-living-adjustment-cola/), so it’s worth checking both pages together each year. Frequently Asked Questions QWhat is a Continuing Disability Review? AIt's a periodic review the Social Security Administration conducts to confirm someone receiving SSDI or SSI still meets the medical definition of disability. It's legally required and applies to both programs. QHow often does SSA review my disability claim? AIt depends on your condition's expected likelihood of improvement: roughly every 6-18 months if improvement is expected, about every 3 years if it's possible, and every 5-7 years if it's not expected at all. Your approval letter states which category applies to you. QWill I lose my SSDI or SSI benefits during a Continuing Disability Review? AMost people don't. SSA's own data shows the large majority of reviews find no medical improvement and benefits continue unchanged. The most common reason people lose benefits during a CDR is missing a response deadline, not genuine medical improvement. QCan I complete my Continuing Disability Review online? AYes, in most cases, through your My Social Security account. A mailed paper packet remains available if you prefer it. Save your confirmation email and a copy of your submitted answers in case SSA's system doesn't show it was received. QWhat happens if I disagree with a CDR decision to stop my benefits? AYou can appeal. If you request continued benefits within 10 days of the cessation notice, SSA generally keeps paying you while the appeal is decided, though you may have to repay those benefits if you ultimately lose the appeal. QWhat is Disability Case Review (DCR)? AIt's a new in-house federal unit SSA announced in March 2026 to handle medical Continuing Disability Reviews, shifting that work away from state Disability Determination Services offices. The transition is ongoing through 2026. QDoes a Continuing Disability Review affect my SSI income and resource limits separately? ANo, a CDR specifically checks medical eligibility. SSI's income and resource limits are reviewed through a separate non-medical eligibility process, including SSA's Access to Financial Institutions bank-verification system. **Categories:** Taxes and Retirement --- ### [Social Security's Compassionate Allowances List Just Grew to 314 Conditions — Does Yours Qualify for Fast-Track Approval?](https://savingtoinvest.com/social-securitys-compassionate-allowances-list-just-grew-to-314-conditions-does/) **Published:** September 4, 2026 **Author:** Andy **Content:** ### Key Takeaways - SSA added 14 conditions to its Compassionate Allowances list on August 11, 2026, bringing the total to 314. - CAL fast-tracks the most severe disability claims - SSA can approve on diagnosis alone, sometimes within days. - New additions include 4 rare cancers and several rare pediatric genetic disorders. - Over 1.2 million people have been approved for SSDI or SSI through CAL since it launched in 2008. - CAL only covers severe, objectively verifiable physical conditions - mental health conditions don't qualify for the fast-track. - Being on the list speeds up medical review only - work-credit and income requirements still must be verified. - You still have to apply with medical evidence; SSA won't auto-flag your claim just because your diagnosis matches. Social Security’s Compassionate Allowances list grew to 314 conditions on August 11, 2026, after the agency added 14 more diagnoses that qualify for near-automatic, fast-tracked disability approval. If you or a family member has one of these conditions, it can mean the difference between waiting days for a decision instead of the months — sometimes years — a standard SSDI or SSI claim can take. Here’s what actually changed, which conditions made the list, and how the fast-track really works in practice. Covered in this Article: [Toggle](#) - [What Compassionate Allowances Actually Is](#What_Compassionate_Allowances_Actually_Is) - [The 14 Conditions Added on August 11, 2026](#The_14_Conditions_Added_on_August_11_2026) - [What CAL Is Not: A Guide to the Misconceptions](#What_CAL_Is_Not_A_Guide_to_the_Misconceptions) - [How to Check If Your Condition Qualifies](#How_to_Check_If_Your_Condition_Qualifies) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: What’s Next for the CAL List](#Looking_Ahead_Whats_Next_for_the_CAL_List) ## What Compassionate Allowances Actually Is The Compassionate Allowances (CAL) initiative lets SSA approve a disability claim based on a confirmed diagnosis alone, without the usual multi-step medical review, for conditions so severe they obviously meet SSA’s definition of disability. It’s not a separate program or a different type of benefit — it’s a fast lane inside the same SSDI and SSI application process. SSA built the list using input from the National Institutes of Health, patient advocacy groups, and its own Institute of Medicine consultations, then updates it periodically as new medical evidence comes in. Since the program launched in 2008, SSA says it has approved more than 1.2 million claims through CAL. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) and I’ll update this page whenever SSA adds another batch of conditions — it typically happens once or twice a year.* ## The 14 Conditions Added on August 11, 2026 The latest update leans heavily toward rare cancers and pediatric genetic disorders — the kinds of diagnoses where the medical evidence itself makes the outcome clear. The four cancers added are hepatosplenic T-cell lymphoma, primary cardiac sarcoma, primary intracranial malignant melanoma, and uveal melanoma with metastases. The remaining additions are rare, mostly congenital or genetic conditions: Adenylosuccinate Lyase Deficiency (both the neonatal and Type 1 forms), Aicardi Syndrome, Baraitser-Winter Syndrome, Beare-Stevenson Cutis Gyrata Syndrome, Bohring-Opitz Syndrome, CASK-Related Gene Disorders, Lafora Disease, Malignant Migrating Partial Seizures of Infancy, and OPHN1 Syndrome. Most of these are conditions most people have never heard of — which is part of the point. CAL exists precisely for diagnoses rare and severe enough that an examiner reviewing the medical record shouldn’t need months of back-and-forth to see the claim is valid. ## What CAL Is Not: A Guide to the Misconceptions I get versions of the same two questions whenever this list gets attention, so it’s worth addressing them directly. **“Is my mental health condition on the list?”** No, and it won’t be. CAL is built around objectively verifiable physical, terminal, or severe genetic conditions — cancers, degenerative neurological diseases, rare pediatric disorders. Even a severe, well-documented mental health condition that genuinely prevents someone from working doesn’t qualify for CAL specifically, though it can absolutely still qualify for SSDI or SSI through the standard disability process. **“Does being on the list mean my claim gets approved automatically?”** Not quite. CAL speeds up the *medical* portion of the review — the part where SSA decides whether your condition meets its disability definition. You still have to file a complete application, and SSA still verifies non-medical eligibility: your work credit history for SSDI, or your income and resources for SSI. Some CAL applicants report their claim still took weeks rather than the “days” figure SSA sometimes uses in its own messaging — the fast-track shortens the process meaningfully, but it isn’t instantaneous for everyone. **Example — Marcus**, age 41, was diagnosed with primary cardiac sarcoma (one of the newly added conditions) in September 2026. His oncologist’s pathology report and imaging clearly documented the diagnosis. Because his condition is now on the CAL list, his SSDI claim was flagged for the fast-track review as soon as SSA received his medical records, and he received a decision within three weeks of applying — far faster than the months a standard claim typically takes. Once approved, Marcus also became eligible for [SSDI back pay](https://savingtoinvest.com/ssdi-back-pay-how-it-works/) covering the months between his application date and his approval. **Example — Diane’s** daughter has a severe anxiety disorder and major depressive disorder that make full-time work impossible. Diane assumed a condition “this serious” would qualify for the fast-track. It doesn’t — mental health conditions aren’t part of CAL — but her daughter’s claim can still move through the standard disability determination process, which allows mental health conditions to qualify for SSDI or SSI based on function-based medical evidence; it just doesn’t get the CAL shortcut. ## How to Check If Your Condition Qualifies SSA publishes the [full Compassionate Allowances conditions list](https://www.ssa.gov/compassionateallowances/conditions.htm) directly on its website, organized alphabetically. A few things are worth knowing before you search it: Conditions are listed by their precise clinical name, which doesn’t always match how your diagnosis gets described day-to-day. If you don’t find a match on the first try, ask your doctor for the exact medical terminology on your diagnosis, or check if your condition is a subtype of something already on the list. You don’t apply for “Compassionate Allowances” separately — you file a standard SSDI or SSI application, the same way you would for any other condition. SSA’s system automatically screens applications for CAL-eligible diagnoses using specific criteria tied to each condition; there’s no special box to check. If you’re applying for SSI rather than SSDI, it’s worth also reviewing the [SSI maximum payment amounts](https://savingtoinvest.com/ssi-maximum-payment-amounts/) page for the income and resource limits that still apply even with a fast-tracked medical decision. ## Common Issues to Watch Out For I hear the same handful of misunderstandings whenever this list makes news, so here’s what trips people up most. **Assuming a “similar” condition automatically qualifies.** CAL conditions are defined narrowly and specifically — a related but distinct diagnosis, or an earlier/less severe stage of a listed cancer, may not trigger the fast-track even if it feels comparable in severity. **Not providing strong enough medical documentation upfront.** CAL speeds up review once SSA has clear evidence, but a thin or incomplete medical record can still slow things down, since examiners need documentation that unambiguously confirms the diagnosis. **Confusing CAL with SSA’s separate Quick Disability Determination (QDD) process.** QDD uses predictive modeling to flag likely-approvable claims from the whole applicant pool, while CAL is a fixed list of specific conditions. They’re both fast-track mechanisms, but they work differently, and a claim can potentially be flagged by either. **Expecting a specific, guaranteed timeline.** SSA doesn’t publish an average processing time for CAL claims, and outcomes vary by field office workload and how quickly your medical records come in — “fast” is relative, not a fixed number of days. **Giving up because a first review didn’t move quickly.** If you believe your condition should qualify for CAL and your claim hasn’t been flagged, contact your local Social Security office directly and point them to the specific condition on the list — this occasionally gets missed if medical records use different terminology than SSA’s database. ## Looking Ahead: What’s Next for the CAL List SSA has expanded the Compassionate Allowances list roughly once or twice a year since 2008, usually adding somewhere between 5 and 15 conditions per update, so another round sometime in 2027 is a reasonable expectation. The agency has said it continues to solicit input from medical experts, patient advocacy organizations, and public comment on which rare and severe conditions should be considered next. I’m also watching how this fits into SSA’s broader push to speed up disability determinations — the agency has separately been investing in AI-assisted tools to help examiners process claims faster and has been bringing more of its medical review work in-house. Whether that translates into more CAL-style fast-tracking, or just faster processing for everyone, isn’t clear yet. I’ll update this page as SSA announces new conditions or process changes. If a family member with a CAL-eligible condition passes away, it’s also worth understanding how [Social Security survivor benefits](https://savingtoinvest.com/social-security-survivor-benefits/) work for a spouse or dependent children. And if you’re weighing disability benefits against other federal support, my [Social Security COLA guide](https://savingtoinvest.com/social-security-tax-and-cost-of-living-adjustment-cola/) covers how annual increases apply across SSDI, SSI, and retirement benefits alike. Veterans with a CAL-qualifying condition should also check whether they’re eligible for [VA disability compensation](https://savingtoinvest.com/va-disability-compensation-rates/) at the same time — the two programs are separate and can both apply. Frequently Asked Questions QWhat is the Compassionate Allowances list? AIt's a Social Security Administration program that lets SSA approve SSDI or SSI claims based on a confirmed diagnosis alone, for conditions severe enough to obviously meet the disability definition - skipping much of the standard multi-step medical review. As of August 11, 2026, the list includes 314 conditions. QWhat conditions were added to the Compassionate Allowances list in August 2026? ASSA added 14 conditions on August 11, 2026, including four rare cancers (hepatosplenic T-cell lymphoma, primary cardiac sarcoma, primary intracranial malignant melanoma, and uveal melanoma with metastases) and several rare genetic and pediatric disorders, including Aicardi Syndrome and Lafora Disease. QDo mental health conditions qualify for Compassionate Allowances? ANo. CAL is limited to severe, objectively verifiable physical, terminal, or genetic conditions. Mental health conditions can still qualify for SSDI or SSI through the standard disability determination process, but they aren't eligible for the CAL fast-track. QHow do I apply for Compassionate Allowances? AThere's no separate application. You file a regular SSDI or SSI claim, and SSA's system automatically screens for CAL-eligible diagnoses based on your medical records. Make sure your doctor's documentation clearly states the exact clinical name of your condition. QDoes being on the Compassionate Allowances list guarantee approval? AIt fast-tracks the medical review, but you still need to meet non-medical requirements - work credits for SSDI, or income and resource limits for SSI - and provide clear medical documentation. Some applicants still report a review process that takes weeks rather than days. QHow many people have been approved through Compassionate Allowances? ASSA reports that more than 1.2 million people have been approved for SSDI or SSI benefits through the Compassionate Allowances program since it began in 2008. QHow often does SSA update the Compassionate Allowances list? ARoughly once or twice a year since 2008, typically adding somewhere between 5 and 15 new conditions per update based on input from medical experts and patient advocacy groups. **Categories:** Taxes and Retirement **Tags:** Social Security --- ### [I Let Claude Trade My Robinhood Account - What Happened and Now it Has Stopped Working](https://savingtoinvest.com/i-let-claude-trade-my-robinhood-agentic-account-heres-what-happened/) **Published:** June 22, 2026 **Author:** Andy **Content:** ### Key Takeaways - Robinhood's Agentic Trading - Claude and ChatGPT can now place real equity, options, and (as of August 2026) crypto trades - Setup takes about 15 minutes via the Model Context Protocol (MCP) - Your agent only has access to a sandboxed wallet you control - it can't touch your main portfolio - Every trade hits your Robinhood app as a notification; you can disconnect the agent at any time - Robinhood is explicit that they're not responsible for agent-generated losses - monitoring is on you ### Update — September 2026: Claude Has Stopped Executing These Trades Something changed, and it’s not just me. I went looking for corroboration rather than taking my own experience at face value, and found it — which changes how I’d describe what’s actually happening here. Sometime around late August, the agent connected to my Robinhood account trading. When I asked Claude directly what was going on, it said it wasn’t allowed to execute real trades — buying, selling, or transferring any stock, crypto, or other financial asset — even with a Robinhood tool connected and even when I explicitly asked. It called this a standing safety rule rather than something tied to a specific policy update it could point me to. ![](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2026/06/image.png?resize=820%2C167&ssl=1) A [Reddit thread in r/RobinhoodApp](https://www.reddit.com/r/RobinhoodApp/comments/1v8zf2o/claude_code_stopped_placing_trades_through_the/) from about a month ago describes the identical pattern. Claude Code would do the full analysis on an options trade — pick the contract, set the limit and stop — then refuse the final order-placement call, citing Anthropic policy against executing trades, with explicit authorization making no difference. Tellingly, the same poster noted the same Robinhood MCP connection fires without issue from Cursor, which points at something Claude-specific rather than anything Robinhood changed on its end. What I can’t tell you is that this is a hard, universal switch that flipped on one date. Other discussion threads describe messier, more inconsistent behavior: some users say the block only shows up in certain products (Claude Desktop or Cowork, not the Claude Code terminal, or the reverse, depending on who you ask); one person described hitting an actual “Classifier block” on the first attempt that cleared on a retry; another says they’re still placing trades through Claude daily with no issue at all. That inconsistency is itself informative — this doesn’t read like a documented, uniformly-enforced policy so much as a safety classifier that’s been getting more aggressive over the past several weeks, tripped differently by different setups. Practically, here’s where that leaves you if you’ve got money in a Robinhood agentic sandbox connected to Claude: don’t assume it’s still trading in the background. Some people are apparently still getting through; others are hitting a flat refusal and switching to a script, a different AI tool, or manual orders. Check your sandbox directly in the Robinhood app rather than trusting that Claude is managing it, and if you’re setting this up new, be aware you may hit a wall that has nothing to do with your prompt. The rest of this piece — my original three-week test and the later options/crypto expansion — is left below exactly as published, since it’s still an accurate record of how the experiment played out while it was running. On May 27, 2026, Robinhood quietly became the first major U.S. brokerage to hand the keys to retail accounts over to AI agents. I say “quietly” loosely — it made a lot of noise in tech circles — but among the personal finance crowd, I don’t think people fully absorbed what this actually means yet. You can now connect Claude (or ChatGPT, or any LLM that speaks Model Context Protocol) to your Robinhood account and let it place real trades on your behalf. I admit it: I am a personal finance junkie and a tech nerd, and this was the first thing I had to try. So I did. Here’s my honest account of how it went — and an update on how far the program has expanded since. Covered in this Article: [Toggle](#) - [What Robinhood Agentic Trading Actually Is](#What_Robinhood_Agentic_Trading_Actually_Is) - [Setting It Up](#Setting_It_Up) - [What Claude Actually Did](#What_Claude_Actually_Did) - [What Surprised Me](#What_Surprised_Me) - [The Part That Still Gives Me Pause](#The_Part_That_Still_Gives_Me_Pause) - [Is This a Gimmick or a Real Thing?](#Is_This_a_Gimmick_or_a_Real_Thing) ## What Robinhood Agentic Trading Actually Is Before I get into the experiment, let me quickly explain the mechanics for anyone who hasn’t dug into this yet. Robinhood Agentic Trading is a separate brokerage sub-account you open alongside your regular Robinhood account. You fund a dedicated wallet — whatever amount you’re comfortable with — and connect a third-party AI agent to it via something called the Model Context Protocol, or MCP. MCP is an open standard that lets AI models like Claude communicate with external tools and services. Robinhood built their own MCP endpoint and published it for anyone to hook up. Once connected, the agent can read your portfolio balance and buying power, analyze positions, and — this is the part that still feels slightly surreal — place actual orders. The agent can only spend what’s in its sandboxed wallet. It cannot touch your main Robinhood account or any other holdings you have there. Every trade pings your phone as a notification, and you can disconnect the agent immediately through the app if something looks off. When I first ran this experiment, the beta only supported stock trading. That’s changed. Robinhood expanded to options for all U.S. customers in early July 2026, and then to crypto on August 17, 2026 — letting agents trade digital assets around the clock through the same MCP connection, still walled off in a separate agentic account from your main portfolio. As of that crypto rollout, Robinhood said the beta had drawn more than 70,000 accounts across equities and options alone. Futures remain the one asset class still on the roadmap. ## Setting It Up The setup is genuinely not that hard, which is part of what makes this feel significant. I used Claude Desktop. You go to Settings → Connectors → Add custom connector, paste in the MCP link, and authenticate. Robinhood walks you through opening the agentic sub-account during that flow — it’s basically an onboarding wizard that runs automatically after you connect. The whole thing took me maybe 15 minutes, including fumbling around with the settings UI. Then I funded my agentic wallet with $500. That number felt right for an experiment: real enough to produce real behavior from the agent, not so much that I’d lose sleep if it blew up. I told Claude my general strategy parameters — I wanted it to prioritize index exposure and avoid individual biotech names — and let it run. ## What Claude Actually Did For the first three days, Claude didn’t trade at all. It read my portfolio, asked a few questions about my time horizon, and then… waited. That actually impressed me. There was no hyperactive churning just because it could. It was watching market conditions and waiting for something that fit the parameters I’d set. By day four it had placed two trades — both ETF purchases, both sensible by any measure I’d apply myself. The notifications landed in my Robinhood app within seconds of the orders going through. I reviewed them and they were completely in line with what I’d asked for. Over three weeks, Claude made eight trades total in the $500 sandbox. Nothing dramatic. The account was up a small amount at the end of the period, though three weeks is basically noise when it comes to measuring investment performance — I want to be clear that I’m not reporting that as a meaningful result. What I was actually watching was the behavior: Did it do what I told it? Did it do anything unexpected? Did it go off-script? The answer was no on all three counts. Which is, honestly, both reassuring and a little anticlimactic if you were hoping for a wild story. Worth noting: every trade in the sandbox is a taxable event. If you’re doing this, keep an eye on short-term capital gains exposure — those get taxed at your ordinary income rate. The [2026 federal tax brackets](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/) are a useful reference if you’re thinking through the tax picture. Things can shift quickly as Robinhood expands the beta. I’ll update this page when there’s anything material to report — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What Surprised Me A few things stood out. **Claude is genuinely readable about what it’s doing.** Before placing each trade, Claude logged its reasoning in a way I could review. This isn’t just a black box executing — it’s explaining the why, which is more than you get from most robo-advisors. That transparency matters a lot to me, and I think it should matter to anyone using this. **The sandboxed wallet structure is smarter than I initially gave it credit for.** There’s a real psychological difference between “Claude has access to my account” and “Claude has access to this specific $500 I explicitly handed it.” The second framing keeps the stakes concrete and contained. It’s the right design. **Robinhood is refreshingly blunt about liability.** Their documentation says plainly that AI agents can err, may act on incomplete or outdated information, and may behave in unexpected ways — and that Robinhood is not responsible for losses resulting from agent-generated decisions. The monitoring responsibility is yours. I respect the honesty, but it’s also a reminder that this is genuinely experimental. You can’t sue Robinhood if Claude tanks your sandbox. ## The Part That Still Gives Me Pause Here’s where I’ll be honest about what I’m still chewing on. The promise of agentic investing is that it handles execution while you set the strategy. That sounds great — but it assumes you’ve given the agent a good strategy in the first place. Most investors, including me, don’t have a cleanly articulable strategy. We have vibes and hunches and loose rules of thumb. Translating those into agent instructions that Claude can actually follow is harder than it sounds. My first attempt at writing out my parameters was vague enough that I had to go back and tighten it up. There’s also the question of what happens in volatile or unusual market conditions — a flash crash, a sudden macro event, something the model wasn’t trained to handle well. Robinhood’s own docs acknowledge that AI-driven strategies “may perform poorly under certain market conditions, move quickly, and may be difficult to monitor or stop in real time.” That last part — difficult to monitor or stop in real time — is worth sitting with even more now that crypto is in scope, since digital assets trade 24/7 and can move sharply overnight while you’re asleep. Eight trades over three weeks is manageable. Eight trades in eight minutes during a market event is a different situation. I’m not saying don’t try it. I’m saying go in with eyes open about what the safeguards actually are and aren’t, and that the surface area for something to go sideways has grown as the program has expanded to more volatile asset classes. If you’re thinking about using a Roth IRA or tax-advantaged account for any of this, be aware that rules around what you can hold and trade in those accounts are strict — here’s the [Roth IRA contribution and eligibility guide](https://savingtoinvest.com/roth-ira-contribution-and-income-limits-plus-conversion-or-rollover-rules/) if that’s relevant to your situation. ## Is This a Gimmick or a Real Thing? I’ve seen a few dismissive takes suggesting this is just Robinhood chasing headlines. I don’t think that’s right. The MCP integration is real infrastructure, the sandboxed account structure shows genuine design thought, and the fact that you can hook Claude Code directly into it means developers can build actual automated strategies — not just natural-language chat with a brokerage. The expansion to options and now crypto, and the 70,000-account beta signup number, suggest this isn’t staying a niche experiment either. For the average retail investor, I think this is still firmly in “interesting experiment with real money you’re prepared to lose” territory right now. Early beta on agentic finance — especially now that it touches 24/7 crypto markets — is not where you put your emergency fund. For the tech-forward personal finance person who wants to understand where this is going: 100% worth setting up a sandbox and playing with it. The $500 I put in felt like the most informative $500 I’ve spent on financial education in a while. I’m leaving the agentic account open and watching what it does over the next few months. I will update this post as I learn more. *Note: Nothing in this post should be construed as personalized investment advice. Agentic trading involves real risk, including loss of principal. I’m describing my own experience with a small sandbox allocation — not recommending a strategy for your situation.* Frequently Asked Questions QIs Robinhood Agentic Trading available to everyone? AAs of August 2026, it's in beta with more than 70,000 accounts signed up across equities and options, but you do need a regular Robinhood individual investing account in good standing first. Setup currently must be done on desktop. QDoes Claude have access to my entire Robinhood account? ANo. The agent only has access to a separate agentic sub-account and the dedicated wallet you fund for it. Your main portfolio is walled off. QWhat AI agents can you connect to Robinhood? ARobinhood's MCP endpoint works with Claude (via Claude Desktop or Claude Code), ChatGPT, and any other LLM that supports Model Context Protocol. Claude is what I tested. QWhat happens if the agent makes a bad trade? ARobinhood's terms are clear that you bear the risk. The agent can only trade within your sandboxed wallet, and you can disconnect it immediately through the app. But Robinhood will not compensate you for agent-generated losses. QWhat assets can the agent trade right now? AStocks and options are available to all U.S. customers, and Robinhood added crypto trading through the same agentic accounts on August 17, 2026. Futures are still on the stated roadmap. QHow do I know what trades the agent is making? AEvery trade generates a real-time notification in your Robinhood app. Claude also logs its reasoning before placing orders, so you can review the rationale - not just the outcome. QIs Robinhood Agentic Trading the same as a robo-advisor? ANot quite. A robo-advisor like Betterment runs a set algorithm based on Modern Portfolio Theory. Agentic trading lets a general-purpose AI model make judgment calls in natural language - it's more flexible, less structured, and correspondingly less predictable. QHow much money should I put in the agentic trading wallet? ARobinhood recommends starting small. I used $500 for my experiment - real enough to produce meaningful agent behavior, not so much that a total loss would hurt. Whatever amount you'd be comfortable losing entirely is the right starting point for beta testing. **Categories:** Taxes and Retirement --- ### [2026–2027 No Tax on Overtime: Who Qualifies, How to Calculate Your Deduction (With Examples)](https://savingtoinvest.com/no-tax-on-overtime-who-qualifies-how-to-calculate-your-deduction-with-e/) **Published:** June 29, 2026 **Author:** Andy **Content:** ### Key Takeaways - The OBBBA allows eligible workers to deduct the premium portion of overtime pay - the 'half' in time-and-a-half - from federal income tax for 2025-2028. - Maximum deduction: $12,500 per individual ($25,000 for married filing jointly). Must file jointly if married. - Only FLSA non-exempt workers qualify - most hourly employees and some salaried workers under the $684/week threshold. Salaried exempt employees generally do not qualify. - Income phase-out starts at $150,000 MAGI (single) / $300,000 (joint). For every $1,000 over the threshold, the deduction drops by $100. - You still owe Social Security and Medicare taxes on all overtime pay. This is a federal income tax deduction only. - Claim it on Schedule 1-A, which attaches to Form 1040. Available whether you itemize or take the standard deduction. - Starting with 2026 income (filed 2027), employers report your overtime premium in W-2 Box 12 code 'TT' - the IRS's August 2026 FAQ update (Fact Sheet FS-2026-13) confirmed there's no workaround if it isn't reported that way: no deduction beyond the reported amount, and a self-prepared Form 4852 doesn't count as a substitute. - Employee-owners with at least a 20% equity stake who are actively involved in managing the business are treated as exempt executives under the same August 2026 guidance - their overtime, even if paid hourly, generally doesn't qualify. - The deduction expires after the 2028 tax year unless Congress extends it. - If you work in California (or another state with daily-overtime rules) and your pay stub shows 'overtime' for a long single shift without your weekly total crossing 40 hours, that overtime is state-mandated, not FLSA-mandated - and it does not qualify for this federal deduction. If you regularly work overtime, there’s a number you need to know right now: **$12,500**. That’s the maximum amount of overtime premium pay you can deduct from your federal income tax for 2025 through 2028, thanks to the One Big Beautiful Bill Act (OBBBA). For a nurse working regular double shifts at the 22% bracket, that’s up to **$2,750 back on your tax return**. For a manufacturing worker with significant overtime, it can be more. Here’s the complete breakdown — who qualifies, how the math works, and exactly how to claim it. *Part of our [OBBBA Tax Guide series](https://savingtoinvest.com/reconciling-trumps-big-beautiful-bill-bbb/) — all OBBBA provisions in one place.* Covered in this Article: [Toggle](#) - [What Is the No Tax on Overtime Deduction?](#What_Is_the_No_Tax_on_Overtime_Deduction) - [Who Qualifies](#Who_Qualifies) - [State Daily Overtime vs. Federal Weekly Overtime — A Distinction That Trips Up a Lot of People](#State_Daily_Overtime_vs_Federal_Weekly_Overtime_%E2%80%94_A_Distinction_That_Trips_Up_a_Lot_of_People) - [Income Limits: The Phase-Out](#Income_Limits_The_Phase-Out) - [How to Calculate Your Premium Pay](#How_to_Calculate_Your_Premium_Pay) - [What Documentation You Need](#What_Documentation_You_Need) - [How to Claim on Schedule 1-A](#How_to_Claim_on_Schedule_1-A) - [Still Owe Payroll Taxes](#Still_Owe_Payroll_Taxes) - [Common Mistakes to Watch Out For](#Common_Mistakes_to_Watch_Out_For) - [Looking Ahead: 2027 and 2028](#Looking_Ahead_2027_and_2028) ## What Is the No Tax on Overtime Deduction? The OBBBA introduced a federal income tax deduction for the **premium portion** of overtime pay earned from Fair Labor Standards Act (FLSA)-mandated overtime. “Premium” means the extra pay above your regular rate — the “half” in “time-and-a-half.” If you earn $20/hour and receive $30/hour for overtime, the $10 premium per hour is what you deduct — not the full $30. You can deduct up to $12,500 of that premium per year as a single filer, or $25,000 combined on a joint return. This is an **above-the-line deduction** on the new [Schedule 1-A](https://savingtoinvest.com/what-is-the-new-schedule-1-a-form-for-tax-filing/). You claim it whether you itemize or take the standard deduction. ## Who Qualifies **Eligible workers:** - Hourly employees covered by FLSA overtime rules - Non-exempt salaried employees earning below the FLSA salary threshold ($684/week or $35,568/year as of 2025) - Some agricultural and domestic workers covered by state-equivalent overtime rules **Not eligible:** - Salaried exempt employees (most managers, executives, administrators, licensed professionals earning above the FLSA salary threshold) - Self-employed and independent contractors (no employer to mandate FLSA overtime) - Workers whose “overtime” is a voluntary bonus structure, not FLSA-mandated - Employees in states or industries with overtime exemptions - **Employee-owners with a bona fide 20%+ equity stake in the business who are actively involved in management.** The IRS’s August 2026 FAQ update (Fact Sheet FS-2026-13) confirmed these workers are treated as exempt “bona fide executives” under the FLSA — so even if they’re paid hourly and their pay stub shows overtime, it generally doesn’t qualify for this deduction. The rule of thumb: if your employer is *required by federal law* to pay you overtime at 1.5x your regular rate, you’re likely eligible. If you’re salaried and overtime is discretionary, you likely aren’t. ## State Daily Overtime vs. Federal Weekly Overtime — A Distinction That Trips Up a Lot of People This one catches a lot of shift workers off guard, especially nurses and other healthcare staff on 12-hour shifts, and anyone in California, Alaska, Nevada, or Colorado — states with their own daily-overtime rules. The federal deduction only covers **FLSA-mandated overtime**, which is based on working more than **40 hours in a week**. It does not cover overtime that exists only because of a *state* daily-overtime law. **Example — Maria, ICU Nurse in California:** Maria works three 12-hour shifts a week — 36 total hours. California requires overtime pay for any hours worked beyond 8 in a single day, so her pay stub shows 4 hours of “overtime” per shift, 12 hours total every week. But Maria never crosses 40 hours for the week. None of that overtime is FLSA-mandated, so **none of it qualifies for the federal No Tax on Overtime deduction** — even though her pay stub calls it overtime, and even though California taxes it as ordinary income (California hasn’t conformed to the federal deduction either). If Maria picked up a fourth shift in the same week, pushing her to 48 total hours, the premium on the hours beyond 40 would be FLSA overtime and would qualify. **The quick check:** look at your total hours for the week, not your daily schedule. If you didn’t cross 40 hours, any “overtime” on your pay stub is very likely state-mandated daily overtime, not FLSA overtime — and it won’t qualify for this deduction, regardless of what the pay stub label says. This is easy to miss because most pay stubs don’t distinguish between the two kinds of overtime; they just say “overtime” either way. If you’re not sure which one you’re getting, ask your payroll department whether your overtime hours came from crossing 40 hours for the week or from a daily/shift-based state rule. ## Income Limits: The Phase-Out The deduction reduces for higher earners: MAGISingle Filer DeductionJoint Filer DeductionUnder $150,000Up to $12,500Up to $25,000$155,000Up to $11,500Up to $25,000$162,500Full phase-out ($0)Approaches $25,000Under $300,000 (joint)N/AUp to $25,000 For every $1,000 over the $150,000/$300,000 threshold, the maximum deduction drops by $100. The deduction reaches $0 at roughly $275,000 (single) or $550,000 (joint) assuming the full $12,500/$25,000 deduction. **Married filers must file jointly** to claim this deduction. Filing separately disqualifies you entirely. ## How to Calculate Your Premium Pay This is where most workers need to do a little homework — at least for 2025 income. Here’s the formula: **Premium per hour = Overtime rate − Regular rate** Then: **Total premium = Premium per hour × Number of overtime hours** **Example: Emily, Registered Nurse** Emily earns $35/hour. Her overtime rate is $52.50 ($35 × 1.5). Her premium is **$17.50 per hour**. In 2025, Emily worked 400 overtime hours: 400 × $17.50 = **$7,000 in premium pay**. Her MAGI is $88,000 (well under $150,000). She deducts the full $7,000 on Schedule 1-A. At the 22% bracket: **$1,540 in federal tax savings**. **Example: James, Manufacturing Supervisor** James earns $28/hour. Overtime rate: $42. Premium: $14/hour. He worked 900 overtime hours in 2025: 900 × $14 = $12,600. But the deduction is capped at $12,500. MAGI: $85,000 — full deduction. At 22%: **$2,750 in tax savings**. **Example: Maria, Shift Manager (Phase-Out)** Maria earns $25/hour, worked 500 overtime hours. Premium: $12.50. Total premium: $6,250. Her MAGI is $163,000 — $13,000 over the $150,000 threshold. Phase-out reduction: 13 × $100 = $1,300. Her available deduction: $6,250 − $1,300 = **$4,950**. At 22%: **$1,089 in tax savings** — still meaningful. **Example: Robert, Salaried Exempt Project Manager** Robert earns $85,000/year salary. His company has “overtime” but it’s discretionary extra pay not mandated by FLSA — he’s a salaried exempt employee. **Robert does not qualify.** His overtime pay doesn’t come from an FLSA mandate. This is one of the most common misconceptions I see. **Example: Priya, Minority Business Co-Owner** Priya owns 30% of the small restaurant she helps manage and is paid an hourly wage with occasional overtime. Even though she clocks hours like her staff, her ownership stake (over the 20% threshold) plus her active role in management make her a “bona fide executive” under FLSA rules. **Priya’s overtime doesn’t qualify** for the deduction — a distinction the IRS specifically clarified in its August 2026 guidance for worker-owners in small and family businesses. ## What Documentation You Need This depends on which tax year you’re filing. **For 2025 income (filed 2026):** Overtime premium isn’t broken out on your W-2. You’ll need to calculate it yourself: - **Year-end pay stub or employer statement** showing total overtime hours and rates - Your **regular rate of pay** (from your employment agreement or most recent pay stub) - Calculation of premium hours × premium rate **For 2026 income (filed 2027): the rules just got a lot stricter.** The IRS’s expanded FAQ update — [Fact Sheet FS-2026-13](https://www.irs.gov/newsroom/irs-updates-faqs-on-qualified-overtime-deduction), released August 6, 2026, replacing January’s FS-2026-01 — spells out exactly how this works now that 2025’s transition relief is gone: - Your employer must report your qualified overtime premium in **W-2 Box 12 using code “TT.”** (In rare cases where you’re an FLSA employee but classified as an independent contractor for tax purposes, it shows up on a 1099-NEC or 1099-MISC instead.) - **You cannot deduct more than what’s reported.** If your employer’s Box 12 code TT amount is too low, or missing entirely, that’s the ceiling on your deduction — full stop. The IRS was explicit that a self-prepared substitute Form W-2 (Form 4852) does not work as a fix here. - **If the reported amount is too high**, you’re limited to the overtime premium you actually received, not the inflated number on the form. - **The only way to fix a wrong number** is to get a corrected Form W-2c from your employer. If your employer won’t issue one, you’re stuck with whatever was originally reported — even if you know it’s wrong. - Employers who get this wrong on purpose or through negligence can face IRS information-reporting penalties, so most will want to correct errors quickly if you flag them. The bottom line: check your W-2 for Box 12 code TT as soon as you receive it for 2026 income, and if it looks wrong, ask your employer for a W-2c immediately rather than waiting until you’re filing your return. Keep your pay stubs either way. Even once employers report Box 12 code TT, hang onto your pay stubs as backup in case you ever need to show your employer (or the IRS) how the number should have been calculated. ## How to Claim on Schedule 1-A **Step 1:** Calculate your total overtime premium as described above (or pull it from W-2 Box 12 code TT starting with 2026 income). **Step 2:** Determine your MAGI and check whether you’re over the $150,000/$300,000 threshold. **Step 3:** Open Schedule 1-A in your tax software (TurboTax, H&R Block, TaxAct all support this for 2025 returns). Enter your overtime premium in the overtime section. **Step 4:** The software calculates any phase-out reduction and transfers the final deduction amount to Schedule 1, then to Form 1040. For 2025 returns (filed in 2026), your tax software likely has a specific field for “qualified overtime premium compensation.” If you’re using a tax preparer, make sure they know you have FLSA overtime — not all preparers will ask unprompted. **A note on withholding:** Your employer withholds federal income tax on your full overtime pay by default — the deduction doesn’t automatically reduce what’s taken out of your paycheck. If you want smaller withholding during the year to reflect your expected deduction, submit a new Form W-4 using the Step 4(b) deduction worksheet (updated for 2026), or run the numbers through the IRS’s Tax Withholding Estimator, which now accounts for this deduction. Things can evolve as IRS guidance updates. I’ll update this page — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## Still Owe Payroll Taxes One critical point: the overtime deduction reduces your **federal income tax only**. You still owe: - Social Security tax: 6.2% on all wages including overtime - Medicare tax: 1.45% on all wages including overtime - State income tax (unless your state conforms to the OBBBA) So Emily’s $7,000 overtime premium still generates about $534 in FICA taxes — but she saves $1,540 in federal income tax. Net benefit: roughly $1,000. ## Common Mistakes to Watch Out For The biggest one: deducting your full overtime pay, not just the premium. You can only deduct the extra pay above your regular rate. Deducting the full time-and-a-half amount overstates your deduction and could trigger an IRS notice. Second: assuming salaried workers always qualify. “Overtime” for a salaried exempt employee is typically discretionary extra compensation, not FLSA-mandated overtime. The distinction matters — and most salaried workers earning a reasonable income are exempt. Third: not keeping pay stubs. For 2025 income, overtime premium isn’t on your W-2, so pay stubs are your only documentation. Even once employers start reporting Box 12 code TT for 2026 income, hang onto your pay stubs as backup — a lost pay stub means a hard conversation with the IRS if you’re questioned. Fourth, and this one catches a lot of shift workers: assuming every hour labeled “overtime” on your pay stub qualifies. If you work 12-hour shifts in a state with daily-overtime rules — California is the most common example — you can see overtime pay every single week without ever crossing 40 hours total. That state-mandated overtime doesn’t qualify for the federal deduction; only overtime from crossing 40 hours in a week does. See the section above for the full breakdown. Fifth, new for 2026 filers: assuming you can claim whatever overtime you actually earned, regardless of what your W-2 says. Starting with 2026 income, the IRS ties your deduction directly to the Box 12 code TT number your employer reports — not your own calculation. If there’s a gap between what you earned and what’s reported, resolve it with your employer before you file, not after. ## Looking Ahead: 2027 and 2028 The deduction runs through the 2028 tax year. For 2026 income (filed in 2027), the guidance I was watching for last year is now settled and, as of August 2026, considerably more detailed: the IRS’s Fact Sheet FS-2026-13 finalized the compliance framework, confirming Box 12 code “TT” is mandatory, spelling out the correction process (W-2c only, no substitute forms), and clarifying edge cases like employee-owners and rare 1099 reporting scenarios. That should meaningfully cut the documentation burden for most workers going forward — but it also means precision on your employer’s part now matters more than ever, since there’s no more room for self-calculated top-ups. Like the tips deduction’s $25,000 cap, the $12,500/$25,000 overtime caps and the $150,000/$300,000 phase-out thresholds are fixed by statute — they are not indexed to inflation. For 2028, this is worth planning around. If you have flexibility in when you take overtime (unusual, but possible for some roles), 2028 is the last year to maximize this deduction before it sunsets. A congressional extension is possible — these provisions poll very well — but nothing is guaranteed. *Related: [2026–2027 Federal Tax Brackets](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/) — knowing your bracket tells you exactly what each dollar of deduction saves. Also see: [2026–2027 IRS Refund Schedule](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) for when to expect your refund if you’re filing with the overtime deduction.* *Also earning tips? See: [No Tax on Tips — Who Qualifies, Income Limits, and Real Examples](https://savingtoinvest.com/no-tax-on-tips-2026-your-complete-guide-to-saving-thousands-with-real-examples/) — the sister deduction for tip income, also on Schedule 1-A.* Frequently Asked Questions QWhat is the No Tax on Overtime deduction and who qualifies? AIt's a federal income tax deduction for the premium portion of FLSA-mandated overtime pay, available for tax years 2025-2028. Hourly and non-exempt workers covered by the Fair Labor Standards Act generally qualify. Salaried exempt employees - most managers and professionals above the FLSA salary threshold - typically do not. QHow much overtime pay can I deduct? AYou can deduct the premium portion of overtime (the amount above your regular rate) up to $12,500 if you file single, or $25,000 on a joint return. If your MAGI exceeds $150,000 (single) or $300,000 (joint), the deduction phases out. QWhat is the 'premium portion' of overtime pay? AIt's the extra pay above your regular rate. If you earn $20/hour and receive $30 for overtime, the premium is $10/hour. Only that $10/hour - not the full $30 - counts toward the deduction. You multiply the premium by total overtime hours to get your deductible amount. QDo I still pay Social Security and Medicare taxes on overtime? AYes. The No Tax on Overtime deduction only reduces federal income tax. You continue to owe FICA taxes (Social Security at 6.2% and Medicare at 1.45%) on all wages including overtime, plus any applicable state income taxes. QHow do I document my overtime premium for Schedule 1-A? AFor 2025 income, your W-2 won't break out the premium - save your year-end pay stub or ask your employer for a statement showing overtime hours and rates, then calculate premium rate times overtime hours. Starting with 2026 income (filed 2027), employers report the premium directly in W-2 Box 12 using code 'TT,' per the IRS's August 2026 finalized guidance. Keep pay stubs as backup either way in case the IRS asks. QCan I claim the overtime deduction if I take the standard deduction? AYes. The overtime deduction is above-the-line - it reduces your AGI before the standard deduction applies. It doesn't matter which deduction method you use; you can claim both. QIs the overtime deduction cap adjusted for inflation? ANo. The $12,500 (single) / $25,000 (joint) caps and the $150,000/$300,000 phase-out thresholds are fixed dollar amounts under current law. They do not increase with inflation and stay the same through the 2028 sunset unless Congress passes new legislation. QWhen does the No Tax on Overtime deduction expire? AAfter the 2028 tax year. The deduction is temporary under current law. Congress would need to pass new legislation to extend it beyond 2028. QI work 12-hour shifts and my pay stub shows overtime every week - does it qualify for the deduction? AOnly if you're also working more than 40 hours in the week. Some states, most notably California, require overtime pay for any hours beyond 8 in a single day even if your weekly total stays under 40. That state-mandated daily overtime is not FLSA overtime and does not qualify for the federal No Tax on Overtime deduction - only overtime resulting from crossing 40 hours in a week does, regardless of what your pay stub calls it. QWhat happens if my employer reports the wrong overtime amount on my W-2 Box 12 code TT? AYou're bound by the reported number either way. If it's too low or missing, you can't deduct more than what's reported - the IRS confirmed in August 2026 there's no workaround, and a self-prepared Form 4852 doesn't count as a substitute. If it's too high, you can only claim the overtime premium you actually received. The only fix for an incorrect amount is a corrected Form W-2c from your employer, so flag any discrepancy as soon as you see your W-2. QDo small business owners who work overtime alongside their employees qualify for this deduction? AGenerally not if they hold a significant ownership stake. The IRS's August 2026 guidance clarified that an employee-owner with at least a 20% equity interest in the business who is actively involved in managing it is treated as an exempt 'bona fide executive' under FLSA rules - so their overtime pay, even if paid hourly, typically doesn't qualify for the deduction. **Categories:** Taxes and Retirement --- ### [2026–2027 Schedule 1-A: The New IRS Form for Tips, Overtime, Auto Loan & Senior Deductions](https://savingtoinvest.com/what-is-the-new-schedule-1-a-form-for-tax-filing/) **Published:** January 11, 2026 **Author:** Andy **Content:** ### Key Takeaways - Schedule 1-A is a new IRS form that attaches to Form 1040 to claim four OBBBA deductions: qualified tips, overtime premium pay, auto loan interest, and the senior bonus deduction. - All four deductions are above-the-line - you claim them whether you take the standard deduction or itemize. - The form has six parts. You only complete the sections that apply to your situation. - The deduction amounts are: tips up to $25,000 per person, overtime premium up to $12,500 (single)/$25,000 (joint), auto loan interest up to $10,000, senior bonus $6,000/$12,000 (65+). - All four deductions are temporary - 2025 through 2028 tax years only. - Income phase-outs apply to all four deductions; thresholds vary by deduction type. - Starting with 2026 income, the overtime and tips deductions require employer W-2 reporting (Box 12 codes TT and TP) - the IRS confirmed in August 2026 that there's no workaround if your employer doesn't report it. Four new tax breaks. One new form. If you received tips, overtime pay, financed a new American-made car, or are 65 or older, Schedule 1-A is your ticket to a lower tax bill for 2025 through 2028. The IRS created Schedule 1-A specifically to handle the new deductions introduced by the One Big Beautiful Bill Act (OBBBA). Think of it as a dedicated hub that calculates each deduction, applies the phase-out if your income is over the limit, and sends the total to Line 1 of Schedule 1 on your Form 1040. *Part of our [OBBBA Tax Guide series](https://savingtoinvest.com/reconciling-trumps-big-beautiful-bill-bbb/) — see all OBBBA provisions in one place.* Covered in this Article: [Toggle](#) - [The Four Deductions on Schedule 1-A](#The_Four_Deductions_on_Schedule_1-A) - [Part 1: No Tax on Overtime — The Premium Deduction](#Part_1_No_Tax_on_Overtime_%E2%80%94_The_Premium_Deduction) - [Part 2: No Tax on Tips](#Part_2_No_Tax_on_Tips) - [Part 3: Auto Loan Interest Deduction](#Part_3_Auto_Loan_Interest_Deduction) - [Part 4: Senior Bonus Deduction (Ages 65+)](#Part_4_Senior_Bonus_Deduction_Ages_65) - [How to File Schedule 1-A: Step by Step](#How_to_File_Schedule_1-A_Step_by_Step) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027 and 2028](#Looking_Ahead_2027_and_2028) ## The Four Deductions on Schedule 1-A DeductionMax AmountPhase-Out StartsExpiresQualified Tips$25,000/person$150,000 (single) / $300,000 (joint)2028Overtime Premium$12,500 (single) / $25,000 (joint)$150,000 (single) / $300,000 (joint)2028Auto Loan Interest$10,000/year$100,000 (single) / $200,000 (joint)2028Senior Bonus (65+)$6,000 / $12,000 (joint)$75,000 (single) / $150,000 (joint)2028 You only complete the parts that apply to you. A bartender who also bought a new Ford truck completes the tips and auto loan sections but skips the overtime and senior sections. ## Part 1: No Tax on Overtime — The Premium Deduction This is the most misunderstood of the four. The deduction does **not** apply to all overtime pay — only the **premium portion**. If you earn $20/hour and get paid $30 for overtime (time-and-a-half), only the extra $10 per hour is the premium you can deduct. **Who qualifies:** - Hourly and non-exempt employees under the Fair Labor Standards Act (FLSA) - Workers whose overtime is mandated by FLSA (the premium over regular rate) - Both W-2 employees and, in rare cases, workers who receive a 1099-NEC or 1099-MISC but are still classified as FLSA employees **Who does not qualify:** - Salaried employees who are FLSA-exempt (most managers, professionals, executives earning over $684/week) - Workers who receive bonuses called “overtime” but not subject to FLSA mandates - Self-employed individuals and independent contractors (no employer to mandate overtime under FLSA) - Employee-owners with at least a 20% equity stake who are actively involved in managing the business — the IRS treats these people as exempt executives, per the August 2026 FAQ update, even if they’re paid hourly **Maximum deduction:** $12,500 per individual. Married filing jointly: $25,000 combined. **Phase-out:** Same as tips — starts at $150,000 MAGI (single) / $300,000 (joint). You must file jointly if married to claim this. **Example — Emily, Manufacturing Worker:** Emily earns $18/hour. Her overtime rate is $27 ($18 × 1.5). The premium is $9/hour ($27 − $18). In 2025, Emily worked 800 hours of overtime, earning $7,200 in overtime premium pay. She deducts the full $7,200 on Schedule 1-A. In the 22% bracket, that’s **$1,584 in tax savings**. **Where to find your overtime premium on your W-2:** For 2025 income, your W-2 won’t break this out automatically — you’ll calculate it from your pay stubs. Starting with 2026 income (filed in 2027), employers must report your qualified overtime premium in **W-2 Box 12 using code “TT.”** The IRS finalized this in an expanded FAQ (Fact Sheet FS-2026-13, August 6, 2026) and was explicit that there’s no transition relief left: if your employer doesn’t report a Box 12 code TT amount, you cannot deduct overtime beyond that number, and a self-prepared substitute form doesn’t fix it. If your employer’s number looks wrong, ask for a corrected Form W-2c — that’s the only way to fix an error. **→ Full overtime deduction guide with more examples: [No Tax on Overtime — Who Qualifies and How to Calculate Your Deduction](https://savingtoinvest.com/no-tax-on-overtime-who-qualifies-how-to-calculate-your-deduction-with-e/)** ## Part 2: No Tax on Tips The tips deduction covers voluntary tip income from one of the [IRS’s 70+ designated tipped occupations](https://www.irs.gov/newsroom/treasury-irs-issue-final-regulations-listing-occupations-where-workers-customarily-and-regularly-receive-tips-under-the-one-big-beautiful-bill) (Treasury finalized the list in April 2026, effective June 12, 2026). Maximum $25,000 per person; same $150,000/$300,000 MAGI phase-out as overtime. Your qualified tips come from W-2 Box 7. If you received cash tips you didn’t report to your employer, you can still claim them — but you must first report them on Form 4137. Starting with 2026 income, employers report tips in W-2 Box 12 using code “TP,” with your Treasury Tipped Occupation Code (TTOC) in Box 14b. **→ Full tips deduction guide: [No Tax on Tips 2026–2027 — Who Qualifies, Income Limits, Examples](https://savingtoinvest.com/no-tax-on-tips-2026-your-complete-guide-to-saving-thousands-with-real-examples/)** ## Part 3: Auto Loan Interest Deduction Deduct up to $10,000 per year in interest paid on a loan for a **new, American-assembled vehicle** purchased for personal use on or after January 1, 2025. The vehicle’s VIN must confirm U.S. final assembly (your lender handles this reporting). Phase-out starts at $100,000 MAGI (single) / $200,000 (joint), and the deduction vanishes completely at $150,000/$250,000. Starting with 2026 interest paid, lenders must furnish you Form 1098-VLI (first statements due by January 31, 2027). **→ Full auto deduction guide: [Auto Loan Interest Deduction 2025–2028](https://savingtoinvest.com/understanding-the-auto-interest-tax-deduction-for-new-cars-between-2025-to-2028/)** ## Part 4: Senior Bonus Deduction (Ages 65+) If you were 65 or older by December 31 of the tax year, you can claim an additional $6,000 deduction ($12,000 if both spouses qualify on a joint return) on top of your standard or itemized deductions. Phase-out starts at $75,000 MAGI (single) / $150,000 (joint). **→ Full senior deduction guide: [$6,000 Senior Bonus Deduction — Do You Qualify?](https://savingtoinvest.com/the-6000-senior-deduction-see-if-you-qualify/)** ## How to File Schedule 1-A: Step by Step **Step 1: Calculate your MAGI.** Part 1 of Schedule 1-A starts here. Your MAGI determines whether you get the full deduction or a reduced amount. For most people, MAGI equals AGI before these new deductions. **Step 2: Fill in only your applicable sections.** Each deduction has its own part. Skip the ones that don’t apply. You need: - For tips: W-2 Box 7 (2025) or Box 12 code TP (2026+), plus Form 4137 if applicable - For overtime: pay-stub calculated premium pay (2025) or W-2 Box 12 code TT (2026+) - For auto loan: interest statement from lender (Form 1098-VLI starting with 2026 interest) + vehicle VIN - For senior bonus: your birth date (must be 65 by December 31) **Step 3: Total and transfer.** The final section sums all your OBBBA deductions and passes the total to Schedule 1, which then flows to Form 1040 Line 10. **Step 4: Keep your records.** W-2s, pay stubs, loan statements, and any VIN verification documents. The IRS may ask for them. Most tax software handles all of this automatically. If you use a human tax preparer, mention all four deduction types — some preparers focused on traditional returns may not immediately ask about the newer provisions. ## Common Issues to Watch Out For The biggest mistake I see with the overtime deduction: people assume their entire overtime paycheck is deductible. Only the premium portion is. If you made $30 per hour instead of your usual $20, only the extra $10 per hour counts. On tips: automatic gratuities don’t qualify. The 18% auto-added to a party of 10 is a service charge, not a tip. On the auto loan: used cars don’t qualify. Refinanced balances on existing loans also have limitations. The vehicle must be new and the loan must originate after December 31, 2024. For the senior bonus: married couples filing separately cannot claim it. Filing status matters more than people realize. For 2026 and later returns: if your employer doesn’t separately report your tips or overtime premium using the correct W-2 box and code, you can’t use a workaround to claim more than what’s reported. Check your W-2 as soon as you get it and ask for a corrected W-2c right away if something looks off — don’t wait until you’re mid-return. Things can evolve — especially with IRS guidance on documentation. I’ll update this page as new guidance comes in. [Subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## Looking Ahead: 2027 and 2028 The 2026 tax year (returns filed in 2027) has better documentation tools than 2025 did. Employer W-2 Box 12 codes “TP” (tips) and “TT” (overtime), plus Box 14b for Treasury Tipped Occupation Codes, should make filing Schedule 1-A faster and cleaner — but they also mean the deduction is capped at whatever your employer actually reports. All four deductions sunset after 2028. If no extension passes, 2028 returns (filed in early 2029) will be the last time you can use Schedule 1-A for these benefits. *For a full picture of how all OBBBA changes affect your 2026 tax return, see: [2026–2027 IRS Tax Brackets](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/)* Frequently Asked Questions QWhat is Schedule 1-A and why do I need it? ASchedule 1-A is a new IRS form that attaches to Form 1040 to claim four deductions created by the One Big Beautiful Bill Act: qualified tips, overtime premium pay, auto loan interest, and the senior bonus deduction. You need it for any of those deductions on your 2025-2028 tax returns. QCan I claim Schedule 1-A deductions if I take the standard deduction? AYes. All four Schedule 1-A deductions are above-the-line, meaning you deduct them before arriving at your AGI. They are completely separate from - and stackable with - the standard deduction. QWhat part of overtime pay is deductible on Schedule 1-A? AOnly the premium portion - the extra pay above your regular rate. If your regular rate is $20/hour and overtime is $30/hour, only the $10 premium per overtime hour is deductible, up to $12,500 annually ($25,000 for joint filers). QWhich workers do NOT qualify for the overtime deduction? ASalaried employees who are exempt from FLSA overtime requirements - including most managers, executives, and professional employees earning above the FLSA salary threshold - generally do not qualify because they don't receive FLSA-mandated overtime. The IRS also clarified in August 2026 that employee-owners with a 20%+ equity stake who actively manage the business are treated as exempt executives, even if paid hourly. QWhat is the income limit for Schedule 1-A deductions? AIt varies by deduction. Tips and overtime: phase-out starts at $150,000 (single) / $300,000 (joint). Auto loan interest: starts at $100,000 (single) / $200,000 (joint). Senior bonus: starts at $75,000 (single) / $150,000 (joint). QCan I claim more overtime or tips than my employer reported on my W-2? ANo. Starting with 2026 income, the deduction is limited to whatever your employer reports in W-2 Box 12 (codes TT for overtime, TP for tips). The IRS confirmed in its August 2026 guidance that there's no relief for missing or incomplete reporting, and a self-prepared substitute W-2 (Form 4852) doesn't work as a fix - you need a corrected W-2c from your employer. QWhen do the Schedule 1-A deductions expire? AAll four deductions are temporary - they apply to tax years 2025 through 2028 only. Unless Congress extends them, 2028 will be the last year you can claim them. **Categories:** Taxes and Retirement --- ### [Best High-Yield Savings and CD Rates Right Now — Top APYs and What the Fed's Next Move Means for Your Cash](https://savingtoinvest.com/high-yield-savings/) **Published:** February 16, 2011 **Author:** Andy **Content:** ### Key Takeaways - Top HYSAs pay up to 4.21% APY as of September 2026 (Axos ONE's bundled rate), essentially unchanged for a third straight month, while the national average savings account pays just 0.38%. - Top CD rates have edged past top HYSA rates: CFG Bank's 1-year CD now pays 4.30% APY, with Bread Savings' 2-year CD at 4.25% and Limelight Bank's 6-month CD at 4.15%. - New Fed Chair Kevin Warsh's hawkish August 28, 2026 Jackson Hole speech pushed the odds of a September 25-basis-point hike from roughly 36% to 65%-68% per CME futures, though prediction markets like Polymarket see it closer to a coin flip. - The Fed held its benchmark rate at 3.50%-3.75% for a second straight meeting on July 29, 2026; its next decision lands September 16, 2026. - With top CD and HYSA rates this close and the Fed's next move genuinely uncertain, a HYSA remains the more flexible choice for most savers - a CD only pays off if you're confident you won't need the cash before the term ends. The average savings account still pays just **0.38%** APY, largely unchanged for over a year. The top high-yield savings accounts (HYSAs) right now pay **up to 4.21%**, and top CDs pay **up to 4.30%** — both over 10 times more than average, with zero additional risk either way. If you’re on this page, you’re likely comparing HYSA and CD options for cash you want to grow but might still need access to. Here’s what’s actually paying the most on each right now, and how to decide between them. (If you want the math on why even a few percentage points of APY compounds into real money over time, I’ve broken that down separately in [my piece on the power of compounding](https://savingtoinvest.com/power-of-compounding-1-million-now-or/) — it’s the same math that underlies [how much you actually need saved to be financially independent](https://savingtoinvest.com/how-much-money-do-you-really-need-to-be-financially-independent/).) Covered in this Article: [Toggle](#) - [Top High-Yield Savings Rates Right Now (September 2026)](#Top_High-Yield_Savings_Rates_Right_Now_September_2026) - [Where the Fed Stands (And Why It Matters for Your Rate)](#Where_the_Fed_Stands_And_Why_It_Matters_for_Your_Rate) - [CD vs. High-Yield Savings: Which Actually Earns You More Right Now](#CD_vs_High-Yield_Savings_Which_Actually_Earns_You_More_Right_Now) - [How to Choose a High-Yield Savings Account](#How_to_Choose_a_High-Yield_Savings_Account) - [Looking Ahead: The September 16 Fed Decision](#Looking_Ahead_The_September_16_Fed_Decision) ## Top High-Yield Savings Rates Right Now (September 2026) BankAPYNotesAxos ONE Savings and Checking Bundle4.21%Requires $1,500 in monthly qualifying direct deposits plus a $1,500 average balance (or a $5,000/$5,000 tier); drops to 1.00% APY if you don’t meet the requirementNewtek Bank Personal High Yield Savings4.20%No monthly fee — still not accepting new applications due to demand; waitlist available, same as the past two monthsForbright Bank Growth Savings4.15%Promotional rate (a 0.30% boost running through 12/31/2026) requires a $1,000 minimum balance; standard rate without the boost is 3.85% If you’d rather skip deposit and balance requirements entirely, Climate First Bank’s Super Duper Savings account pays 4.01% APY with just a $50 minimum to open and no strings attached. Rates have held essentially flat for a third straight month — none of the top three accounts have moved since July. That stability makes sense given the Fed hasn’t actually changed its benchmark rate since December 2025; the next real test comes with the September 16 decision. Always check the account’s current published rate and requirements before opening, since these numbers can shift quickly once the Fed moves. ## Where the Fed Stands (And Why It Matters for Your Rate) HYSA rates track the Federal Reserve’s federal funds rate fairly closely, since banks adjust what they pay savers based on what it costs them to borrow elsewhere. At its July 29, 2026 meeting, the Fed held its benchmark rate at **3.50%–3.75%** for a second straight meeting under new Fed Chair Kevin Warsh, who took over the gavel on May 22, 2026. Warsh delivered his first Jackson Hole keynote as chair on August 28, 2026, and struck a notably hawkish tone — he called inflation “concerning” and said the Fed may still have “work to do” to bring it down, even while describing the broader economy as strong. That speech moved markets. Odds of a 25 basis point hike at the Fed’s next meeting jumped from roughly 36% before the speech to **65%–68%** afterward, per CME’s FedWatch tool. Prediction markets are more split — Polymarket traders had it closer to a coin flip, around 48% hike versus 52% hold, as of this weekend. The Fed’s next decision lands **September 16, 2026**, following its two-day meeting that starts September 15. Incoming jobs and inflation data between now and then will likely move those odds further in either direction. A hike would probably nudge top HYSA rates higher within a few weeks; another hold would likely keep things roughly where they’ve been since summer. **What a rate cut would mean later:** if the Fed eventually does start cutting, HYSA rates typically follow down within a billing cycle or two — banks aren’t obligated to pass through cuts quickly, but competitive pressure usually gets them there. If you’re choosing between a HYSA and locking in a CD right now, that’s the tradeoff: a CD locks in today’s rate for its term, while a HYSA’s rate can move either direction with the Fed. Short-term Treasury bills are a third option worth knowing about — [I compared my own experience buying one against CDs and HYSAs](https://savingtoinvest.com/i-bought-my-first-short-term-us-treasury-bill-for-a-better-return-than-cds-and-high-yield-savings-accounts/) if you want another liquid, low-risk place for cash. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get notified when the Fed’s September decision and updated rates post.* ## CD vs. High-Yield Savings: Which Actually Earns You More Right Now The gap between CD and HYSA rates remains narrow. A year or two ago, locking in a CD usually meant giving up meaningful yield versus a HYSA. That’s no longer true at the top of the market — here’s what’s actually available on each side as of early September 2026. CD TermBest Published APYBankMinimum Deposit6-month4.15%Limelight Bank$1,0001-year4.30%CFG Bank$5002-year4.25%Bread Savings$1,500 Credit unions can beat these on shorter, niche terms: California Coast Credit Union was offering 5.00% APY on a 5-month “Take 5” certificate as of early September 2026, though it’s limited to new members and caps deposits at $5,000. Credit union CDs typically require membership (often just a small one-time donation to a partner nonprofit), which adds a small extra step compared to opening a bank account online. Compare those top CD rates to the top HYSAs from the table above — 4.21% at Axos, 4.01% at Climate First — and the best-in-class numbers are within a few tenths of a percentage point of each other across every term. The *averages* tell a very different story than the top-of-market numbers. The national average 1-year CD APY is just 2.03% as of early September 2026, versus 0.38% for the average savings account. Most people banking with a traditional big bank are earning a fraction of what’s actually available — the gap between “average” and “best available” is enormous in both categories, which is exactly why shopping around matters more than which product type you pick. ### When a CD Wins - You’re confident you won’t need the cash before the term ends. - You expect the Fed to hold or eventually cut before your CD matures, and want to lock in today’s yield before that happens. - You want a fixed, predictable return with zero chance of the rate dropping mid-term. ### When a HYSA Wins - You might need the cash on short notice — HYSAs have no withdrawal penalty. - You expect the Fed to hike (as CME futures currently lean, at roughly 65%-68% odds for September), since a HYSA’s rate can rise right along with it. - You want to keep adding to the balance over time; most CDs are a single lump-sum deposit. Early withdrawal from a CD before its term ends typically costs you 3 to 6 months of interest as a penalty, depending on the term and bank — sometimes more for longer-term CDs. That penalty is the real cost of the “locked in” rate, so a CD only makes sense if you’re genuinely confident you can leave the money untouched. If there’s any real chance you’ll need the funds early, the flexibility of a HYSA is usually worth more than the extra fraction of a percentage point a CD might offer. Given how close top CD and top HYSA rates are right now, and given the market’s genuinely split view on whether the Fed hikes or holds on September 16, a HYSA is still the more flexible bet for most savers — you’re not giving up much yield for the ability to move your money if you need to, and you’d benefit automatically if rates do rise. ## How to Choose a High-Yield Savings Account Whichever provider you’re considering, run it through these four checks before opening an account. ### 1. Interest Rate or Annual Percentage Yield (APY) Compare the account’s *standard* ongoing APY, not just a short-term promotional rate that resets after 3 or 6 months. Some of the accounts above (Axos, Forbright) require ongoing deposit or balance activity to keep the top rate — that’s different from a temporary teaser, but still worth reading the fine print on. ### 2. No Fees A legitimate high-yield savings account shouldn’t charge monthly maintenance, minimum-balance, or account-keeping fees. Banks make their money on the spread between what they pay you and what they can lend or invest at elsewhere — if a provider is also charging fees on top of that, it’s worth reconsidering. If you’re curious how your savings stack up more broadly, I’ve also put together [average net worth by age](https://savingtoinvest.com/average-net-worth-by-age/) as a reference point. ### 3. Ease of Use Most online banks let you preview their interface before opening an account. Check that linking to your existing checking account is straightforward and that direct deposit setup doesn’t require extra hoops. ### 4. FDIC Insured Verify FDIC coverage directly at the [FDIC’s BankFind tool](https://banks.data.fdic.gov/bankfind-suite/bankfind) before depositing. All deposits up to $250,000 per depositor, per bank, are automatically FDIC-insured — if an institution is offering a rate well above the market average without FDIC backing, treat that as a red flag rather than a deal. The same check applies to CDs at a bank or NCUA coverage at a credit union. ## Looking Ahead: The September 16 Fed Decision I’ll update this page after the Fed’s September 16, 2026 meeting with whatever direction rates move. In the meantime, a few things worth watching: Fed Chair Warsh’s hawkish Jackson Hole tone has already moved futures markets meaningfully, and whatever jobs and inflation data lands between now and the meeting will likely determine whether that 65%-68% hike probability holds, rises further, or fades the way odds did earlier this summer. If you’re deciding whether to wait for a possibly higher rate or lock in a top HYSA now, keep in mind that even a “wait and see” approach still earns you the current top rate while you watch — there’s no cost to opening a high-yield account today and switching later if something better comes along. Frequently Asked Questions QWhat is the best high-yield savings account rate right now? AAs of September 2026, the Axos ONE Savings and Checking Bundle pays the highest published rate at 4.21% APY, though it requires meeting monthly direct deposit and balance thresholds to earn that rate. Newtek Bank's Personal High Yield Savings account pays 4.20% APY but remains on a waitlist for new applicants. Forbright Bank (4.15% APY promotional, $1,000 minimum) and Climate First Bank (4.01% APY, $50 minimum, no other requirements) are strong active alternatives. QWhy is the average savings account rate so much lower than HYSA rates? AThe national average savings account rate is 0.38%, largely because traditional big banks don't compete aggressively on savings rates the way online-only banks do. Online banks have lower overhead and pass more of that savings on to depositors through higher APYs. QWill the Federal Reserve raise or cut interest rates next? AThe Fed held its rate steady at 3.50%-3.75% at its July 29, 2026 meeting, its second straight hold under new Fed Chair Kevin Warsh. Warsh's hawkish August 28, 2026 Jackson Hole speech pushed the odds of a 25-basis-point hike at the Fed's next meeting, on September 16, 2026, from around 36% to 65%-68% per CME futures markets, though other prediction markets see the outcome as closer to a coin flip. QShould I choose a HYSA or a CD right now? AWith top rates this close (CDs up to 4.30% APY vs. HYSAs up to 4.21% APY as of early September 2026), the decision comes down to flexibility, not yield. A CD locks in today's rate for a fixed term and typically charges a penalty of 3 to 6 months' interest for early withdrawal, which is worth it mainly if you're confident rates will hold or fall and you won't need the cash before the term ends. A HYSA lets you withdraw anytime with no penalty and its rate moves with the Fed, which is the better fit if you might need the money on short notice or think a hike is genuinely possible. QWhat are the best CD rates available right now? AAs of early September 2026, some of the strongest published CD rates are Limelight Bank at 4.15% APY for a 6-month term ($1,000 minimum), CFG Bank at 4.30% APY for a 1-year term ($500 minimum), and Bread Savings at 4.25% APY for a 2-year term ($1,500 minimum). California Coast Credit Union was offering 5.00% APY on a 5-month certificate for new members as of early September 2026, though credit union membership is required. These compare to a national average 1-year CD rate of just 2.03% APY, so shopping around matters as much for CDs as it does for savings accounts. QWhat happens if I withdraw from a CD before it matures? ANearly all CDs charge an early withdrawal penalty, typically equal to 3 to 6 months of interest depending on the term and bank, and sometimes more for longer-term CDs. This penalty can eat into your principal if you withdraw very early in the term, not just your interest earnings. Because of this, a CD only makes sense for cash you're confident you won't need until the term ends - if there's real uncertainty, a HYSA's no-penalty flexibility is usually worth more than a CD's slightly higher locked-in rate. QHow do I know if a high-yield savings account is safe? AConfirm the bank is FDIC-insured using the FDIC's BankFind tool before depositing. FDIC insurance covers up to $250,000 per depositor, per bank. Avoid any account offering a rate dramatically above the market average without verifiable FDIC backing. QHow often do high-yield savings account rates change? AHYSA rates can change at any time at the bank's discretion, often in response to Fed rate decisions or competitive pressure from other banks. It's worth checking your account's current rate periodically rather than assuming the rate you signed up at is permanent. **Categories:** Taxes and Retirement --- ### [SNAP Soda and Candy Bans: 23 States Approved, 5 Blocked by Court — Full State-by-State List for 2026](https://savingtoinvest.com/snap-food-restrictions-soda-candy-bans-by-state/) **Published:** July 20, 2026 **Author:** Andy **Content:** ### Key Takeaways - USDA/FNA has approved SNAP food-restriction waivers in 23 states, and as of September 2026, 10 of those restrictions are actively in effect - up from 8 a month ago now that South Carolina and North Dakota crossed their target dates. - A June 22, 2026 federal court ruling in Aragon v. Rollins blocked the waivers in Colorado, Iowa, Nebraska, Tennessee, and West Virginia, finding USDA exceeded its legal authority. - USDA filed a notice of appeal to the D.C. Circuit on August 20, 2026; the five blocked states stay blocked unless that appeal succeeds, which could take months. - The ruling and pending appeal apply only to those 5 states - the other 18 approved waivers remain active or on schedule, unaffected. - Eight states still have approved waivers that haven't taken effect yet, with target dates running from this month through February 2028 (Nevada). USDA has approved SNAP food-restriction waivers in 23 states, and as of September 2026, 10 of those restrictions are actually in effect — up from 8 a month ago, now that South Carolina and North Dakota have crossed their target dates. Five more states remain blocked by a federal court, and USDA filed its appeal of that ruling on August 20, 2026. If you receive [SNAP](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/), whether your state’s restriction actually applies to you right now depends on which of the 23 you live in — the list isn’t uniform, and neither is the legal status. One housekeeping note: the agency behind these waivers changed its name on June 1, 2026. USDA’s Food and Nutrition Service (FNS) is now the Food and Nutrition Administration (FNA) — same agency, same waiver program, new name on the letterhead. Covered in this Article: [Toggle](#) - [What’s Actually Banned, State by State](#Whats_Actually_Banned_State_by_State) - [The Court Ruling That Blocked Five States](#The_Court_Ruling_That_Blocked_Five_States) - [Who This Actually Affects](#Who_This_Actually_Affects) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: What to Watch Through 2027](#Looking_Ahead_What_to_Watch_Through_2027) ## What’s Actually Banned, State by State Every waiver is different. Some states restrict just soda; others go much further. Here’s the full list with target implementation dates, pulled directly from the FNA’s food-restriction waiver tracker. StateTarget DateWhat’s RestrictedStatus (as of Sep 2026)ArkansasJul 1, 2026Soda, low-juice drinks, other unhealthy drinks, candyActiveColoradoOct 30, 2026Soft drinks**Blocked by court**FloridaApr 20, 2026Soda, energy drinks, candy, prepared dessertsActiveHawaiiApr 1, 2027Soft drinksApproved, not yet activeIdahoFeb 15, 2026Soda and candyActiveIndianaJan 1, 2026Soft drinks and candyActiveIowaJan 1, 2026Nearly all taxable food items under Iowa tax law (broadest restriction of any state)**Blocked by court**KansasFeb 15, 2027Candy and soft drinksApproved, not yet activeLouisianaFeb 18, 2026Soft drinks, energy drinks, candyActiveMissouriFeb 15, 2027Candy, prepared desserts, certain unhealthy beveragesApproved, not yet activeMontanaSep 30, 2026High-sugar beverages, energy drinks, candy, prepared dessertsApproved, not yet activeNebraskaJan 1, 2026Soda and energy drinks now; candy added Nov 1, 2026**Blocked by court**NevadaFeb 1, 2028Candy and sugar-sweetened beveragesApproved, not yet activeNorth DakotaSep 1, 2026Sweetened beverages, energy drinks, candyActiveOhioOct 1, 2026Sugar-sweetened beveragesApproved, not yet activeOklahomaFeb 15, 2026Soft drinks and candyActiveSouth CarolinaAug 31, 2026Candy, energy drinks, soft drinks, sweetened beveragesActiveTennesseeJul 31, 2026Processed foods and beverages: soda, energy drinks, candy**Blocked by court**TexasApr 1, 2026Sweetened drinks and candyActiveUtahJan 1, 2026Soft drinksActiveVirginiaOct 1, 2026Sweetened beveragesApproved, not yet activeWest VirginiaJan 1, 2026Soda**Blocked by court**WyomingFeb 1, 2027Sweetened, carbonated beveragesApproved, not yet active South Carolina (SC) and North Dakota (ND) both crossed their target dates this week, bringing the active-restriction count to 10 states. South Carolina’s waiver hit its Aug. 31 target date, and North Dakota’s took effect Sep. 1 — both now join the “active” column alongside the 8 states that were already live last month. [Florida’s restriction](https://savingtoinvest.com/florida-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) remains one of the broadest currently active — it goes beyond soda and candy to also cover energy drinks and prepared desserts, so it’s worth a closer look if you’re a Florida (FL) recipient. If your state isn’t on this list, USDA/FNA hasn’t approved a food-restriction waiver there as of this writing. The [FNA’s waiver tracker page](https://www.fna.usda.gov/snap/waivers/foodrestriction) is the authoritative, regularly updated source if you want to check for changes. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get updates as more states move between these buckets.* ## The Court Ruling That Blocked Five States On June 22, 2026, U.S. District Judge Amy Berman Jackson ruled in *Aragon v. Rollins* that USDA exceeded its legal authority when it approved food-restriction waivers as “demonstration projects.” Her reasoning: the law lets USDA test the SNAP program’s *administrative efficiency* through pilot projects, not use that authority to improve recipients’ diet or health. “Congress defined what ‘food’ is supposed to be, and it did not authorize the agency to amend or waive the definition it enacted,” Judge Jackson wrote. The ruling specifically voided the waivers in **Colorado (CO), Iowa (IA), Nebraska (NE), Tennessee (TN), and West Virginia (WV)** — the five states named as defendants in that lawsuit. It does not automatically apply to the other 18 states with approved waivers; those remain in effect unless USDA withdraws them voluntarily or a separate court challenge succeeds against them individually. **USDA filed its notice of appeal on August 20, 2026**, asking the U.S. Court of Appeals for the D.C. Circuit to review Judge Jackson’s June 22 ruling — one day ahead of its filing deadline. Filing the appeal doesn’t reinstate the five blocked programs on its own; they stay blocked unless the D.C. Circuit stays or reverses the district court’s ruling, a process that typically takes months. Agriculture Secretary Brooke Rollins has said the administration intends to keep pursuing the restrictions as part of the broader “Make America Healthy Again” push led alongside HHS Secretary Robert F. Kennedy Jr. ## Who This Actually Affects **Carla**, a SNAP recipient in [West Virginia](https://savingtoinvest.com/west-virginia-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/), had been budgeting around the state’s planned soda restriction, which was originally set to start January 1, 2026. Because West Virginia is one of the five blocked states, that restriction still isn’t in effect — she can keep using SNAP for soda purchases while USDA’s appeal plays out. **James**, who receives [SNAP in Texas (TX)](https://savingtoinvest.com/texas-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/), isn’t affected by the ruling at all. Its restriction on sweetened drinks and candy took effect April 1, 2026, and wasn’t part of the *Aragon v. Rollins* case, so it remains active regardless of how the appeal turns out. If you’re not sure whether your state’s restriction currently applies, your state SNAP office is the fastest way to confirm — the contact links on the FNA’s waiver tracker page go directly to each state’s SNAP administrator. ## Common Issues to Watch Out For A few things that trip people up on this topic. **Assuming all 23 states have the same rules.** They don’t. Iowa’s waiver is dramatically broader than most — it restricts nearly all taxable food items, not just soda and candy — while several other states only touch sugary drinks. Read your specific state’s restriction rather than assuming it matches a neighboring state. **Thinking the court ruling ended all SNAP food restrictions.** It only blocked the five states named in the lawsuit, and USDA’s appeal doesn’t change that while it’s pending. The other 18 approved waivers are unaffected unless a separate legal challenge succeeds against them. **Confusing “approved” with “active.”** Hawaii, Kansas, Missouri, Montana, Nevada, Ohio, Virginia, and Wyoming have approved waivers with implementation dates still ahead, some stretching into 2027 and 2028 — nothing changes for recipients in those states yet. **Not checking retailer-level confusion.** Even in active-restriction states, retailer point-of-sale systems don’t always correctly flag every restricted item at checkout in the early weeks of a rollout. If you’re charged incorrectly, most states have a retailer complaint email listed on their state’s SNAP waiver page. ## Looking Ahead: What to Watch Through 2027 USDA’s appeal to the D.C. Circuit is now the biggest thing to watch on the legal side — there’s no set timeline yet for briefing or a decision, but a reversal could eventually reinstate the five blocked states’ restrictions, while an unfavorable ruling for USDA could put pressure on its approach in the other 18 states too. Beyond the litigation, several approved-but-not-yet-active waivers are still coming: [Montana (MT)](https://savingtoinvest.com/montana-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) on September 30, 2026, then Ohio and Virginia on October 1, 2026, followed by Kansas, Missouri, and Wyoming in February 2027, Hawaii in April 2027, and Nevada in February 2028. I’ll update this page as implementation dates arrive and as the appeal develops. Frequently Asked Questions QWhich states currently ban soda and candy purchases with SNAP? AAs of September 2026, 10 states have restrictions actively in effect: Arkansas, Florida, Idaho, Indiana, Louisiana, North Dakota, Oklahoma, South Carolina, Texas, and Utah. Another 8 states (Hawaii, Kansas, Missouri, Montana, Nevada, Ohio, Virginia, and Wyoming) have approved waivers with implementation dates still ahead. Colorado, Iowa, Nebraska, Tennessee, and West Virginia had waivers approved but remain blocked by a federal court ruling while USDA appeals. QWhy did a court block SNAP food restrictions in some states? AOn June 22, 2026, a federal judge ruled in Aragon v. Rollins that USDA lacked legal authority to approve these restrictions as 'demonstration projects,' since that authority is meant to test program efficiency, not improve recipients' diet or health. The ruling voided the waivers specifically in Colorado, Iowa, Nebraska, Tennessee, and West Virginia. QDoes the court ruling affect all 23 states with approved waivers? ANo. The ruling only applies to the five states named as defendants in the lawsuit. The other 18 states' approved waivers remain in effect unless USDA withdraws them or a separate legal challenge succeeds. QWhat exactly is banned under these SNAP waivers? AIt varies by state. Most restrict soda, energy drinks, and candy. A few, like Florida and Montana, also restrict prepared desserts. Iowa's waiver is the broadest, restricting nearly all taxable food items under state tax law rather than just sugary items. QDid USDA appeal the court ruling? AYes. USDA filed a notice of appeal with the U.S. Court of Appeals for the D.C. Circuit on August 20, 2026, one day ahead of its filing deadline. Filing the appeal doesn't automatically reinstate the five blocked states' restrictions - they stay blocked unless the D.C. Circuit stays or reverses the district court's ruling, which typically takes months. QHow do I find out if my state has a SNAP food restriction? ACheck the Food and Nutrition Administration's (FNA, formerly FNS) SNAP Food Restriction Waivers tracker at fna.usda.gov/snap/waivers/foodrestriction, which lists every approved state, the implementation date, and what's restricted. Your state's SNAP office can also confirm current status. **Categories:** Taxes and Retirement --- ### [Social Security Payment Dates: September 2026 Schedule by Birth Date](https://savingtoinvest.com/social-security-payment-schedule-by-birth-date/) **Published:** July 17, 2026 **Author:** Andy **Content:** ### Key Takeaways - Regular Social Security payments in September 2026 go out on September 3 (pre-May 1997 or dual SSI/SS recipients), September 9, September 16, or September 23 depending on birth date. - SSI is back on its normal 1st-of-the-month schedule this month - the September payment lands September 1 with no shift. - The birth-date Wednesday schedule applies to retirement, SSDI, and survivors benefits, not SSI. - October brings the next quirk: SSI pays twice in October (October 1, plus November's payment early on October 30) and skips a separate November payment entirely, since November 1, 2026 falls on a Sunday. - November has its own separate wrinkle: the 1st-10th birth-date payment shifts from November 11 to November 10 because November 11 is Veterans Day. - Neither a double-payment month nor a skipped one changes the total - it's the same 12 annual SSI payments, just shifted by the calendar. If you get Social Security, your September 2026 payment lands on one of four dates depending on when you started benefits and your birth date. If you get SSI, you’re back on the normal 1st-of-the-month schedule this time — the double-payment/no-payment quirk that hit July and August is behind us for now. (Your payment amount still reflects this year’s [2.8% COLA increase](https://savingtoinvest.com/social-security-tax-and-cost-of-living-adjustment-cola/), if you’re checking the dollar figure against last year’s.) I get questions about this every month, and September is refreshingly boring on the calendar front — no weekend or holiday collisions anywhere in the schedule. Here’s the full breakdown, plus a heads-up on what’s coming in October. Covered in this Article: [Toggle](#) - [September 2026 Social Security Payment Schedule](#September_2026_Social_Security_Payment_Schedule) - [SSI Is Back to Its Normal Schedule](#SSI_Is_Back_to_Its_Normal_Schedule) - [A Few Real Scenarios](#A_Few_Real_Scenarios) - [Looking Ahead: October 2026 Schedule](#Looking_Ahead_October_2026_Schedule) - [How to Check Your Own Payment Status](#How_to_Check_Your_Own_Payment_Status) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Full Remaining 2026 Payment Schedule](#Full_Remaining_2026_Payment_Schedule) ## September 2026 Social Security Payment Schedule Payment GroupSeptember 2026 DateSSI recipientsSeptember 1Social Security recipients who started benefits before May 1997, or who receive both Social Security and SSISeptember 3Birth date 1st–10thSeptember 9 (2nd Wednesday)Birth date 11th–20thSeptember 16 (3rd Wednesday)Birth date 21st–31stSeptember 23 (4th Wednesday) Every date this month lands on its normal, unshifted slot. September 1, 2026 is a Tuesday, so SSI’s payment goes out right on schedule for the first time since June. September 3 is a Thursday, so the pre-May 1997/dual SSI-SS group isn’t shifted either. ## SSI Is Back to Its Normal Schedule [SSI (Supplemental Security Income)](https://savingtoinvest.com/ssi-maximum-payment-amounts/) is always paid on the 1st of the month — not tied to your birth date the way regular Social Security is. When the 1st falls on a weekend or federal holiday, the SSA moves that payment earlier, to the last business day of the prior month, rather than delaying it. That’s exactly what happened in August: August 1, 2026 fell on a Saturday, so SSI’s August payment went out early on July 31, leaving August itself with no separate deposit. September doesn’t have that problem — September 1 is a plain Tuesday, so the payment lands on time with no shift in either direction. **This rule affects SSI only.** If you receive regular Social Security retirement, survivors, or SSDI benefits, your payment always follows the birth-date Wednesday schedule above, regardless of what SSI is doing that month. ## A Few Real Scenarios **Linda** started her Social Security retirement benefit in 2019 and has a birthday on the 14th. Her September payment arrives September 16, the third Wednesday, right on the normal schedule. (If you’re still deciding when to start yours, my guide to [key retirement ages for Social Security](https://savingtoinvest.com/retirement-ages-and-eligilbility-rules-for-receiving-401k-ira-and-social-security-beneifts/) covers the tradeoffs between claiming early versus waiting.) **Robert** receives SSDI (Social Security Disability Insurance) with a birthday on the 5th. He’s paid on the second Wednesday, September 9. His payments have landed on schedule every month this year, regardless of what’s happening with SSI. **Maria** receives SSI only, no other benefits. After a strange August with no deposit at all, she’s back to a single, predictable payment on September 1 — the first normal SSI month since June. ## Looking Ahead: October 2026 Schedule October brings the next calendar quirk, and it’s the double-payment version rather than the missing one: - SSI recipients (regular October payment): October 1 - Social Security recipients who started benefits before May 1997, or who receive both Social Security and SSI: October 2 (shifted from October 3, a Saturday) - Birth date 1st–10th: October 14 (2nd Wednesday) - Birth date 11th–20th: October 21 (3rd Wednesday) - Birth date 21st–31st: October 28 (4th Wednesday) Watch for this one: November 1, 2026 falls on a Sunday, so November’s SSI payment shifts early to Friday, October 30. That means SSI recipients get two deposits in October — the regular October 1 payment and November’s payment paid early — and no separate SSI payment in November. I’ll cover the full breakdown when I update this page for October. *[Subscribe here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get notified when I do.* ## How to Check Your Own Payment Status The fastest way to confirm your exact payment date and amount is your **my Social Security** account at [ssa.gov/myaccount](https://www.ssa.gov/myaccount/). Once you’re logged in, your benefit verification letter and payment history show the actual dates SSA has on file for you, rather than relying on the general birth-date schedule above. If you receive payments by direct deposit, funds are typically available the morning of your scheduled date, though some banks post a business day earlier or later depending on their own processing cutoffs. Paper checks, which fewer than 1% of beneficiaries still use, add several days of mail transit on top of the mailing date and are being phased out entirely under SSA’s move to end paper checks. If you switched banks recently or updated your direct deposit information, double-check that SSA has your current account on file — a payment sent to a closed account can take weeks to sort out and get reissued. ## Common Issues to Watch Out For A few things I see trip people up on the payment calendar every month. **Confusing SSDI with SSI.** They sound alike but follow completely different payment schedules. SSDI (and regular retirement and survivors benefits) follows the birth-date Wednesday schedule. SSI is always paid on the 1st, shifted earlier only when the 1st falls on a weekend or holiday. **Not knowing which group you’re in if you get both Social Security and SSI.** If you receive both, you’re paid on the 3rd of the month (or the prior business day if the 3rd falls on a weekend/holiday) — not on your birth-date Wednesday. **Forgetting that a “double payment” month isn’t extra money.** When SSI’s 1st-of-month payment shifts because of a weekend or holiday, it just moves the same 12 annual payments around the calendar. October and November are about to be the next example — don’t spend an October SSI deposit as if it’s a bonus. **Assuming your check is smaller than it should be without checking why.** If you have a defaulted federal student loan, up to 15% of a regular Social Security check can now be withheld through the Treasury Offset Program — I cover the exact math and how to stop it in my [student loan Social Security garnishment guide](https://savingtoinvest.com/student-loan-social-security-garnishment/). SSI isn’t subject to this offset. **Not realizing SSI recipients may qualify for more help.** If you’re on a fixed income and also have Medicare, it’s worth checking whether you qualify for [Extra Help with Part D drug costs](https://savingtoinvest.com/medicare-extra-help-part-d-low-income-subsidy/) — if you already get SSI, you may already be automatically enrolled without realizing it. ## Full Remaining 2026 Payment Schedule SSA publishes its full calendar for the year in advance ([the official 2026 payment schedule](https://www.ssa.gov/pubs/EN-05-10031-2026.pdf)), so here’s every remaining month laid out in one place if you want to plan further ahead than just next month. MonthSSIPre-May 1997 / Dual SSI-SSBirth 1st–10thBirth 11th–20thBirth 21st–31stOctoberOctober 1, plus November’s payment paid early on October 30October 2 (shifted from October 3, a Saturday)October 14October 21October 28NovemberNo separate payment — already paid October 30November 3November 10 (shifted from November 11 — Veterans Day)November 18November 25DecemberDecember 1December 3December 9December 16December 23 One more wrinkle worth flagging now, separate from the SSI shifts above: the November 1st–10th birth-date payment moves from November 11 to November 10, because November 11, 2026 is Veterans Day, a federal holiday. That’s the birth-date Wednesday schedule shifting directly — not the SSI 1st-of-month rule — so it catches people off guard in a different way than the October/November SSI quirk. Groups 2 and 3 (11th–20th and 21st–31st) aren’t affected. I’ll still confirm and refresh these numbers as each month approaches, but the underlying dates above are locked in on SSA’s published calendar and shouldn’t change. Frequently Asked Questions QWhen will I get my Social Security payment in September 2026? AIt depends on your benefit type and birth date. Beneficiaries who started Social Security before May 1997, or who get both SSI and Social Security, are paid September 3. Everyone else is paid on a Wednesday based on birth date: the 9th (1st-10th), the 16th (11th-20th), or the 23rd (21st-31st). SSI recipients are paid September 1. QIs SSI back to a normal payment schedule in September 2026? AYes. August's SSI payment went out early, on July 31, because August 1 fell on a Saturday. September 1, 2026 falls on a Tuesday, a regular business day, so SSI's September payment lands on schedule with no shift. QWhy do SSI payment dates sometimes shift but Social Security's don't? ASSI is always paid on the 1st of the month, while regular Social Security (retirement, SSDI, survivors) is paid on a Wednesday tied to your birth date. Only SSI's 1st-of-month rule collides with weekends and holidays often enough to cause the shifting pattern. QWhat is the Social Security payment schedule for October 2026? ASSI recipients are paid October 1. The pre-May 1997/dual SSI-SS group is paid October 2, shifted from October 3 because that date falls on a Saturday. Regular Social Security recipients are paid by birth date: October 14 (1st-10th), October 21 (11th-20th), or October 28 (21st-31st). QWill SSI recipients get a payment in November 2026? ANot a separate one. November 1, 2026 falls on a Sunday, so November's SSI payment moves early to Friday, October 30 - meaning SSI recipients see two deposits in October and none in November. It's the same pattern that caused August's missing payment, just running in reverse. QDoes a federal holiday ever shift the birth-date Wednesday payment itself? AYes. In November 2026, the 1st-10th birth-date group's payment would normally fall on November 11 - the second Wednesday - but that's Veterans Day, a federal holiday. SSA moves it to the preceding business day, November 10. Groups 2 and 3 (11th-20th and 21st-31st) aren't affected that month. QMy payment didn't arrive on the scheduled date - what should I do? ADirect deposits can occasionally take an extra business day to post, and paper checks take longer due to mail time. If it's been more than a few business days past your scheduled date, contact the Social Security Administration directly at 1-800-772-1213 or through your My Social Security account. **Categories:** Taxes and Retirement --- ### [2026–2027 Senior Deduction: The New $6,000 Tax Break for Ages 65+ (Do You Qualify?)](https://savingtoinvest.com/the-6000-senior-deduction-see-if-you-qualify/) **Published:** March 15, 2026 **Author:** Andy **Content:** ### Key Takeaways - The OBBBA added a new $6,000 'Senior Bonus Deduction' for taxpayers age 65 or older - $12,000 for married couples where both spouses qualify. - This stacks on top of the standard deduction (or your itemized deductions) - it's not a replacement. - Phase-out starts at $75,000 MAGI (single) / $150,000 (joint); deduction reduces by $0.06 per dollar over the threshold. - You must have a valid Social Security number and file as single, head of household, or married filing jointly. Filing separately disqualifies you. - The deduction runs 2025 through 2028. Beyond 2028, Congress would need to act to extend it. - For many retirees, this deduction effectively offsets some or all of the federal income tax on Social Security benefits, pension income, or IRA withdrawals. For retirees on a fixed income, every tax break matters. The $6,000 Senior Bonus Deduction added by the One Big Beautiful Bill Act (OBBBA) is one of the most straightforward new benefits in the law: if you’re 65 or older, you get an extra $6,000 subtracted from your taxable income, period. No special accounts, no investment required — just age. In the 22% bracket, that’s **$1,320 back in your pocket**. For a couple where both spouses are over 65, it’s **$2,640**. Here’s everything you need to know about eligibility, the income phase-out, and how it interacts with Social Security. *Part of our [OBBBA Tax Guide series](https://savingtoinvest.com/reconciling-trumps-big-beautiful-bill-bbb/) — see all OBBBA provisions in one place.* Covered in this Article: [Toggle](#) - [What the Senior Deduction Is (and Isn’t)](#What_the_Senior_Deduction_Is_and_Isnt) - [Who Qualifies](#Who_Qualifies) - [The Income Phase-Out: Will You Get the Full Amount?](#The_Income_Phase-Out_Will_You_Get_the_Full_Amount) - [Real Examples](#Real_Examples) - [How It Interacts With Social Security](#How_It_Interacts_With_Social_Security) - [How to Claim It](#How_to_Claim_It) - [Strategies to Maximize It](#Strategies_to_Maximize_It) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027 and 2028](#Looking_Ahead_2027_and_2028) ## What the Senior Deduction Is (and Isn’t) Think of your federal tax deductions as layers. You have your base (the standard deduction: $16,000 single / $32,000 joint for 2026, already inflation-adjusted under the OBBBA). Seniors already had a small bonus on top of that. The new $6,000 deduction is a third layer — entirely separate and stacked on whatever you were already claiming. It’s not a credit (which reduces your tax directly). It’s a deduction, which reduces your **taxable income**. The cash value depends on your tax bracket: Tax BracketSingle Filer Savings ($6,000)Joint Filer Savings ($12,000)10%$600$1,20012%$720$1,44022%$1,320$2,64024%$1,440$2,880 ## Who Qualifies **Age:** You must be 65 or older by December 31 of the tax year. If you turn 65 on December 31, you qualify for the full year. **Social Security number:** Required for the taxpayer claiming the deduction. This is a permanent SSN requirement under the OBBBA. **Filing status:** Single, head of household, or married filing jointly. If you are married and file separately, you are disqualified — no partial credit, no workaround. **Both spouses:** If both spouses are 65+, each can claim $6,000 for a combined $12,000 on a joint return. If only one spouse is 65+, the maximum is $6,000. ## The Income Phase-Out: Will You Get the Full Amount? The deduction targets middle-income seniors. It starts to reduce once your Modified Adjusted Gross Income (MAGI) crosses: - **$75,000** for single filers / head of household - **$150,000** for married filing jointly The reduction rate: **$0.06 per dollar** over the threshold (6 cents per dollar, or $60 per $1,000). **Single filer math:** - Full $6,000 if MAGI ≤ $75,000 - At $80,000: reduced by $300 → $5,700 - At $100,000: reduced by $1,500 → $4,500 - At $175,000: reduced by $6,000 → $0 (fully phased out) **Joint filer math:** - Full $12,000 if MAGI ≤ $150,000 - At $160,000: reduced by $600 → $11,400 - At $200,000: reduced by $3,000 → $9,000 - At $350,000: reduced by $12,000 → $0 (fully phased out) ## Real Examples **Example 1 — Margaret, Retired Teacher (Simple Case)** Margaret is 70, single, and lives in Ohio. Her income is $52,000: $28,000 from her state pension and $24,000 from Social Security (taxable portion: about $10,200 based on provisional income rules). Her MAGI for this deduction: approximately $52,000 — well under $75,000. **Full $6,000 deduction available.** In the 12% bracket, that’s **$720 in tax savings**. Small, but it offsets about 3 months of Medicare Part B premiums. **Example 2 — Robert, Retired Engineer (Phase-Out Zone)** Robert is 68, single, and living on his pension ($60,000) plus IRA withdrawals ($25,000). Total MAGI: $85,000 — $10,000 over the threshold. Phase-out reduction: $10,000 × $0.06 = $600. **Available deduction: $5,400.** In the 22% bracket: **$1,188 in tax savings**. Robert’s situation: he can keep his deduction higher by reducing IRA withdrawals slightly, or by using Qualified Charitable Distributions (QCDs) from his IRA to lower MAGI. I’d suggest talking to a financial advisor about RMD strategy if you’re in this range — the MAGI management can be worth more than the deduction itself. **Example 3 — Dorothy and Frank, Retired Couple (Both 65+)** Dorothy (68) and Frank (71) file jointly. Income: Social Security ($36,000 combined, $22,000 taxable), Frank’s pension ($45,000), Dorothy’s part-time consulting ($12,000). MAGI: approximately $79,000. Under the $150,000 joint threshold — **full $12,000 deduction.** At 22%: **$2,640 in tax savings**. **Example 4 — High-Income Retirees** A couple with $220,000 in MAGI (investment income + pensions + RMDs). Joint phase-out: $220,000 − $150,000 = $70,000 over. Reduction: $70,000 × $0.06 = $4,200. Available deduction: $12,000 − $4,200 = **$7,800**. In the 24% bracket: **$1,872 in savings** — still meaningful. ## How It Interacts With Social Security The Social Security question I get a lot: does this affect whether my benefits are taxed? Sort of — indirectly. Social Security taxation is based on “provisional income” (half your SS benefits + other income + tax-exempt interest). The $6,000 deduction reduces your taxable income, but it doesn’t reduce provisional income the same way. However: by reducing your tax bill by $720–$2,640, you effectively have more after-tax income from the same Social Security check. And for some retirees, a lower overall tax liability means more of their Social Security ends up in their pocket even if the benefit amount itself doesn’t change. For the full picture on how Social Security is taxed and what the OBBBA’s broader changes mean for retirees, see our updated guide: [Social Security Tax and 2027 COLA Outlook](https://savingtoinvest.com/social-security-tax-and-cost-of-living-adjustment-cola/). ## How to Claim It No separate form required. The deduction integrates into the standard **Form 1040 or Form 1040-SR** (the senior-specific version of the 1040). When you check the box indicating you (and/or your spouse) are 65 or older, tax software will automatically calculate the deduction and the phase-out if applicable. On Schedule 1-A (the new OBBBA form), the senior deduction has its own section (Part 4). You enter your filing status, age, and MAGI — the form does the phase-out math. Keep in mind: this is **temporary**. The deduction exists for tax years 2025 through 2028 as current law stands. ## Strategies to Maximize It If your MAGI is hovering near $75,000 (single) or $150,000 (joint), small moves can lock in more deduction: **Health Savings Account (HSA):** If you’re still under 65 and enrolled in a High-Deductible Health Plan, HSA contributions directly reduce MAGI. (Once you’re on Medicare at 65, you can no longer contribute to an HSA, but you can still use existing funds.) **Qualified Charitable Distributions (QCDs):** If you’re 70½ or older and taking Required Minimum Distributions, you can send up to $111,000 (2026) directly from your IRA to charity as a QCD. This satisfies your RMD without the distribution showing up as income — directly lowering your MAGI. **Timing of IRA withdrawals:** If you have flexibility on when you take distributions, pulling from a Roth IRA (non-taxable) instead of a traditional IRA in a given year can keep MAGI below the threshold. Things can shift quickly — especially if IRS issues guidance on phase-out calculations or if Congress adjusts the thresholds. I’ll update this page — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## Common Issues to Watch Out For Married couples filing separately is the top mistake I hear about. Many seniors file separately by habit or because one spouse has significant medical itemized deductions — but the Senior Bonus Deduction is completely unavailable to separately-filing spouses. Run the numbers both ways before deciding. Second: confusing this with the existing senior standard deduction add-on. Those are different and stackable. The existing 65+ add-on is roughly $1,550–$1,950 (depending on filing status and inflation). This new $6,000 is completely separate and stacks on top. Third: forgetting about the phase-out. I’ve seen seniors assume they get the full $6,000 when their pension plus Social Security plus IRA withdrawals are actually pushing them past $75,000. Run the numbers. ## Looking Ahead: 2027 and 2028 The deduction stays in place through 2028. Social Security COLA for 2027 is currently estimated at 3.4%–3.6%, narrowed from an earlier 4.7% peak (see [2027 COLA Estimates](https://savingtoinvest.com/social-security-tax-and-cost-of-living-adjustment-cola/)) — meaning retirees’ benefits will be higher, but the $75,000/$150,000 phase-out thresholds are fixed in current law without inflation adjustment. I’m watching whether Congress adjusts these thresholds before 2028, since fixed income limits that don’t adjust for COLA will gradually phase more retirees out of the full deduction over time. As benefits rise with COLA, more seniors cross the $75,000 threshold. *Related: [$6,000 Senior Deduction for 2026 — full eligibility details (this page). For Social Security COLA and 2027 projections, see: \[Social Security COLA 2027 Update](https://savingtoinvest.com/social-security-tax-and-cost-of-living-adjustment-cola/).* Frequently Asked Questions QWho qualifies for the new $6,000 Senior Deduction? ATaxpayers who are 65 or older by December 31 of the tax year, have a valid Social Security number, and file as single, head of household, or married filing jointly. Married couples filing separately do not qualify. QWhat is the income limit for the $6,000 Senior Deduction? AThe deduction begins to phase out at $75,000 MAGI for single filers and $150,000 for married filing jointly. It reduces by $0.06 per dollar over the threshold and reaches $0 at $175,000 (single) or $350,000 (joint). QIs the $6,000 Senior Deduction the same as the existing senior standard deduction add-on? ANo. Seniors already had a small bonus to their standard deduction (roughly $1,550-$1,950). The new $6,000 is entirely separate and stacks on top. You get both. QDoes the $6,000 Senior Deduction affect Social Security taxation? ANot directly. Social Security taxation uses provisional income as its threshold, which is calculated separately. However, the deduction reduces your total tax liability, so you keep more of your overall income after taxes. QCan a married couple claim $12,000 in Senior Bonus Deduction? AYes, if both spouses are 65 or older and file jointly. Each spouse can claim $6,000 for a combined $12,000. If only one spouse is 65+, the maximum is $6,000. QHow long does the $6,000 Senior Deduction last? AIt is scheduled through the 2028 tax year (for returns filed in 2029). It is temporary unless Congress extends it. The deduction was introduced as part of the One Big Beautiful Bill Act passed in 2025. QHow do I claim the $6,000 Senior Deduction on my tax return? AIt's built into Form 1040 and Form 1040-SR. When you indicate your age (65+), tax software calculates the deduction automatically using the Schedule 1-A worksheet. No separate form is needed beyond Schedule 1-A, which attaches to your Form 1040. **Categories:** Taxes and Retirement --- ### [AI Infrastructure Investing in 2026: How to Think About the Trade Behind the AI Boom](https://savingtoinvest.com/ai-infrastructure-investing-how-to-think-about-the-trade-behind-the-ai-boom/) **Published:** June 17, 2026 **Author:** Andy **Content:** ### Key Takeaways - The four largest hyperscalers (Amazon, Alphabet, Meta, Microsoft) now guide to roughly $730 billion combined in 2026 AI infrastructure capex - up from $410 billion in 2025, with several companies raising guidance again since their Q2 reports. - AI infrastructure investing means betting on the physical buildout behind AI (compute, networking, power, cooling), not on which AI model or chatbot wins - the 'picks and shovels' framing. - Late-July earnings were a genuine gut-check, and the market's verdict came back split: Alphabet posted its first negative free-cash-flow quarter since its 2004 IPO and Meta fell 10% on its report, while Microsoft rose 8% and Amazon crossed a $3 trillion market cap days later. - Nvidia's August 26 earnings - revenue up 106% year-over-year to $96.2 billion, with 70% growth guided for fiscal 2028 - gave the 'AI capex has no payoff' thesis its biggest challenge yet, and the stock had its best day since April 2025. - Power and electrification remain the tightest bottleneck in the stack; Morgan Stanley now pegs the AI data center power gap at 38 gigawatts, even as suppliers report record order backlogs. By late summer 2026, the AI infrastructure story on Wall Street has moved past “how much are they spending” and into “is it working.” It’s no longer just about which company has the smartest chatbot — it’s about who’s pouring concrete, stringing transformers, and laying fiber to keep the whole thing running, and whether the revenue is finally showing up to justify it. The four largest hyperscalers — Amazon, Alphabet, Meta, and Microsoft — are now guiding to roughly **$730 billion** combined in 2026 AI infrastructure capex, up from $410 billion in 2025. Amazon raised its 2026 cash capex guidance to around $220 billion (from $200 billion, citing memory prices), Alphabet lifted its range to $195–205 billion, Meta is at $130–145 billion, and Microsoft is tracking toward roughly $175 billion for the calendar year. That’s not a one-year blip either — Goldman Sachs has modeled roughly $7.6 trillion of cumulative AI capital spending between 2026 and 2031 across compute, data centers, and power. If you’ve been hearing the term “AI infrastructure investing” thrown around and want to understand what it actually means — and which kinds of companies sit where in that value chain — this is the primer. Covered in this Article: [Toggle](#) - [What “AI Infrastructure” Actually Means](#What_%E2%80%9CAI_Infrastructure%E2%80%9D_Actually_Means) - [Why This Theme Exists: The Hyperscaler Spending Wall](#Why_This_Theme_Exists_The_Hyperscaler_Spending_Wall) - [The Four Layers of the AI Infrastructure Stack](#The_Four_Layers_of_the_AI_Infrastructure_Stack) - [Why “Picks and Shovels” Is the Phrase You’ll Keep Hearing](#Why_%E2%80%9CPicks_and_Shovels%E2%80%9D_Is_the_Phrase_Youll_Keep_Hearing) - [How People Commonly Get Exposure to This Theme](#How_People_Commonly_Get_Exposure_to_This_Theme) - [The Real Risks Worth Understanding](#The_Real_Risks_Worth_Understanding) - [The Bottom Line](#The_Bottom_Line) ## What “AI Infrastructure” Actually Means When people say “AI infrastructure,” they’re usually not talking about the AI models themselves (the ChatGPTs and Claudes of the world). They mean the physical and digital backbone required to train and run those models at scale. That includes data centers, the specialized chips inside them, the networking gear connecting thousands of chips together, the power systems keeping the lights on, and the cooling systems keeping the equipment from melting. Think of it like the difference between the internet (the idea) and the fiber-optic cables, server farms, and undersea cables that made the internet possible (the infrastructure). AI infrastructure investing is a bet on the latter — the unglamorous, capital-intensive plumbing behind the AI revolution. ## Why This Theme Exists: The Hyperscaler Spending Wall The reason this has become its own investing category is simple: a handful of companies are spending an almost incomprehensible amount of money, and that money has to go somewhere. Across the largest data center operators globally, 2026 capex is now tracking close to $730–750 billion, up from a little less than $450 billion in 2025. This spending isn’t optional posturing — it reflects a genuine capacity crunch. Demand for AI compute continues to outstrip available capacity, which is why companies that build, supply, and operate this infrastructure have become some of the most direct ways for public market investors to get exposure to the AI buildout, separate from betting on which AI model or chatbot ultimately “wins.” The late-July earnings stretch put that thesis to its first real test, and the results diverged sharply by company. Alphabet’s Q2 report and raised capex forecast sparked the initial sell-off in late July. But when Amazon, Meta, and Microsoft reported the following week, the market didn’t punish them uniformly: Meta fell about 10% the day after its report as investors balked at its spending pace, while Microsoft rose roughly 8% after hours on the strength of $678 billion in commercial remaining performance obligations, and Amazon crossed a $3 trillion market cap in early August as AWS growth accelerated to 37%. Alphabet, meanwhile, posted its first negative free-cash-flow quarter since its 2004 IPO. Same spending story, four very different market reactions — a sign investors are now scrutinizing execution company by company, not treating “AI capex” as a single trade. Then came Nvidia’s August 26 report, which mattered for the whole theme, not just chip investors. Revenue hit $96.2 billion, up 106% year-over-year and above Wall Street’s expectations, and the company guided to 70% revenue growth for fiscal 2028 versus the roughly 44% analysts had penciled in. The stock jumped 8.7% that day — its best single-day move since April 2025 — and helped lift the S&P 500 and Nasdaq to their best day since early August. For a trade that spent late July under a cloud of “is the spending paying off,” a compute-demand signal that strong from the industry’s biggest supplier was hard to ignore. ## The Four Layers of the AI Infrastructure Stack A useful way to think about this theme is as a stack, with different types of companies operating at each layer. **1. Compute (the chips).** This is the most familiar layer — the specialized processors (GPUs and custom AI accelerators) that do the actual computation. Nvidia dominates here, but hyperscalers are increasingly building their own custom silicon too, like Google’s TPUs and Amazon’s in-house chips, partly to reduce their reliance on any single supplier. **2. Networking.** Thousands of chips need to talk to each other extremely fast, and that requires high-speed networking equipment. Companies that make switches, optical components, and interconnects sit in this layer. **3. Power and electrification.** This has become the layer getting the most attention in 2026, for a simple reason: it’s the hardest constraint to solve quickly. Building a data center is one thing; getting enough electricity to it — and the transformers, switchgear, and grid equipment to deliver that power reliably — is another. GE Vernova’s electrification order backlog reached $176 billion by its Q2 2026 report, and Eaton’s data center backlog stood at $22.8 billion in the same stretch, with data center orders up roughly 240% year-over-year. Morgan Stanley estimated in August that AI data centers now face a 38-gigawatt power supply gap. One earlier industry estimate put the total electrification need at $1.4 trillion just to meet AI data center power demand by 2030, with data centers projected to consume 12% of U.S. electricity by 2028. **4. Cooling and thermal management.** All those chips generate enormous heat, and traditional air cooling isn’t enough anymore — much of the industry is moving to liquid cooling systems. Companies that specialize in thermal management for data centers, sometimes the same companies active in the power layer, sit here. Some companies span multiple layers. Vertiv, for instance, is one of the few large companies covering both power equipment and cooling simultaneously inside the data center — its Q2 2026 revenue jumped 24% to $3.27 billion with adjusted earnings per share up 60%, which is part of why it shows up so often in infrastructure-themed discussions. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) and I’ll keep updating this page as the AI capex story develops.* ## Why “Picks and Shovels” Is the Phrase You’ll Keep Hearing During the California Gold Rush, the people who reliably made money weren’t necessarily the prospectors — they were the merchants selling picks, shovels, and supplies to everyone trying their luck. The AI infrastructure trade borrows that logic: instead of betting on which specific AI application or model becomes dominant, you’re betting on the companies that profit regardless of which model wins, because someone still has to build the data center, power it, and keep it cool. This is appealing because it sidesteps some of the “which AI company actually has a durable moat” debate. The tradeoff is that these stocks aren’t immune to AI hype cycles either — when sentiment around AI spending sours, infrastructure names tend to get pulled down too, even if the underlying order backlogs haven’t changed, as the late-July selloff showed. The reverse is also true, as Nvidia’s late-August rally demonstrated: a single strong data point can lift sentiment across the whole stack quickly. ## How People Commonly Get Exposure to This Theme There are a few common approaches, each with different tradeoffs: **Individual stocks across the stack.** Some investors build a basket spanning chips, networking, power, and cooling rather than concentrating in one layer — the logic being that nobody knows for certain which layer captures the most value over the next five years, so diversifying across the stack reduces that single-layer risk. **Thematic ETFs.** For investors who want exposure to the theme without picking individual winners, AI- and infrastructure-focused ETFs bundle multiple companies across the stack into a single fund. This trades some upside concentration for diversification, and it’s worth checking what’s actually inside any given fund — “AI” has become a popular label, and the underlying holdings can vary a lot between funds that sound similar. **The diversified industrial angle.** Some of the companies benefiting most from AI infrastructure spending — power equipment makers, electrical component suppliers — aren’t pure AI plays at all. They’re industrial companies that happen to have a large and growing AI-related revenue stream layered on top of their existing business. That can offer a bit more downside cushion if AI spending growth slows, since the rest of their business doesn’t disappear. ## The Real Risks Worth Understanding No infrastructure theme is risk-free, and a few things are worth sitting with before treating this as a one-way bet: **Spending could slow faster than expected.** A meaningful chunk of current capex is happening ahead of proven returns. If AI monetization disappoints, hyperscalers have shown in the past that they can and will cut capital spending plans. **Hyperscalers are increasingly financing this with debt, not just cash.** As capex has outpaced free cash flow, several of the largest cloud players have turned to external financing — bond issuance and other debt — to keep funding the buildout. Alphabet’s debt balance has climbed to roughly $100 billion alongside an $80 billion equity raise. That’s a meaningfully different risk profile than cash-funded expansion, since it adds interest costs and balance-sheet leverage that weren’t part of the story a year or two ago. **Power delivery timelines are long.** Some of the bottleneck-easing investments — like new nuclear capacity — won’t come online until 2028 or later, meaning today’s power constraints don’t get solved overnight even with massive capital committed now. **Company-level results are starting to diverge, not move together.** July and August showed that “AI infrastructure” isn’t a single, uniform trade anymore — Meta’s spending pace worried investors while Microsoft’s and Amazon’s execution reassured them. Picking a basket rather than a single name matters more as this dispersion grows. **Concentration risk.** A small number of hyperscalers drive an outsized share of this spending. If even one or two of them pull back, the ripple effects across the supply chain could be larger than investors expect. ## The Bottom Line The AI infrastructure theme is really a bet on a multi-year capital spending cycle that’s already well underway, not a speculative bet on which AI product wins. The chip layer gets the headlines, but in 2026 the more interesting conversation has shifted toward power, cooling, and networking — the physical bottlenecks standing between today’s compute demand and tomorrow’s capacity. Late July delivered the scrutiny; late August, with Nvidia’s blowout quarter, delivered a partial rebuttal. Neither one settles the debate on its own. Whether you approach it through individual stocks, an ETF, or diversified industrials with AI tailwinds, understanding which layer of the stack you’re actually buying — and how it’s being financed — matters more than chasing the theme as a single, undifferentiated trade. For a broader look at how this spending debate has been rattling the whole market, see my post on [stock market volatility in 2026](https://savingtoinvest.com/stock-market-volatility-now-is-not-time/). *This article is for informational purposes only and isn’t personalized investment advice. Do your own research, and consider talking to a financial advisor before making investment decisions.* Frequently Asked Questions QHow much are hyperscalers spending on AI infrastructure in 2026? AAmazon, Alphabet, Meta, and Microsoft are now guiding to roughly $730 billion combined in 2026, up from $410 billion in 2025. Across all major data center operators globally, capex is tracking close to $750 billion. QWhat happened with AI infrastructure stocks after Q2 2026 earnings? AThe results diverged. Alphabet posted its first negative free-cash-flow quarter since its 2004 IPO and Meta fell about 10% on its report, while Microsoft rose roughly 8% and Amazon crossed a $3 trillion market cap days later on accelerating AWS growth. QWhat did Nvidia's August 2026 earnings mean for the AI infrastructure trade? ANvidia reported revenue up 106% year-over-year to $96.2 billion and guided to 70% growth for fiscal 2028, well above analyst expectations. The stock's 8.7% jump - its best day since April 2025 - was widely read as evidence that AI compute demand is still outrunning supply. QWhat are the four layers of the AI infrastructure stack? ACompute (chips like GPUs and custom silicon), networking (interconnects and switches linking chips together), power and electrification (the current bottleneck, with an estimated 38-gigawatt supply gap), and cooling/thermal management. QIs AI infrastructure investing the same as buying AI stocks? ANot exactly. 'AI infrastructure' refers to the physical buildout - data centers, chips, power, cooling - rather than the AI software or model companies themselves. It's often called a 'picks and shovels' approach to AI investing. QWhat's the biggest risk in the AI infrastructure trade right now? ABeyond valuations, a growing risk is that hyperscalers are increasingly funding this buildout with debt rather than cash as capex outpaces free cash flow - Alphabet alone has added roughly $100 billion in debt alongside an $80 billion equity raise - adding leverage to a theme that was largely cash-funded until recently. **Categories:** Taxes and Retirement --- ### [What Are Perpetual Futures (Perps)? Why They're Booming — and Why They Could Trigger the Next Financial Crisis](https://savingtoinvest.com/what-are-perpetual-futures-perps-why-theyre-exploding-and-why-they-could-trigger/) **Published:** June 25, 2026 **Author:** Andy **Content:** ### Key Takeaways - Perpetual futures ('perps') are derivatives that let you bet on an asset's price with no expiration date and with leverage sometimes exceeding 100x your capital. - They keep price alignment with the underlying asset through a 'funding rate' - a recurring payment between long and short traders, typically every 8 hours. - Perps now dominate crypto trading volume globally, and they've moved into regulated U.S. markets after the CFTC's May 2026 approval. - Liquidation cascades cut both ways: on August 20, 2026, a $1.74 billion short squeeze - the second-largest on record - sent Bitcoin up 7.5% in a day as crowded short positions were forcibly closed. - On January 30, 2026 alone, over $2.56 billion in leveraged long positions were liquidated in a single trading day - the same mechanism running in reverse. Perpetual futures — “perps” in market shorthand — are the fastest-growing trading instrument in global finance right now. They started in crypto, stayed in crypto for years, and are now crossing over into traditional Wall Street territory. The CFTC formally approved Bitcoin perps from regulated U.S. platforms in May 2026. Coinbase has them. Robinhood added crypto trading to its own agentic trading beta in August 2026, with perps a logical next step as that program expands. And they scare me a little. Not because they’re inherently evil — they serve real purposes. But because the combination of no expiration, extreme leverage, and 24/7 trading creates a system where things can unwind very fast and very badly, in either direction. An August 2026 short squeeze made that second part concrete. Let me explain what they are, why traders love them, and why regulators and risk managers are watching nervously. Covered in this Article: [Toggle](#) - [What Is a Perpetual Future?](#What_Is_a_Perpetual_Future) - [The Funding Rate: The Mechanism That Makes Perps Work](#The_Funding_Rate_The_Mechanism_That_Makes_Perps_Work) - [Why Traders Love Them](#Why_Traders_Love_Them) - [How Liquidation Cascades Work](#How_Liquidation_Cascades_Work) - [The Systemic Risk Case](#The_Systemic_Risk_Case) - [Real-World Examples](#Real-World_Examples) - [Where This Goes From Here](#Where_This_Goes_From_Here) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## What Is a Perpetual Future? A regular futures contract is an agreement to buy or sell an asset at a set price on a set future date. When that date comes, the contract expires — either the trade settles or you roll into a new contract. A perpetual future has no expiration date. You can hold your position indefinitely. There’s no settlement date, no rollover, no forced close. You buy a BTC perp, take a leveraged long position, and hold it as long as you want — as long as you have enough margin to keep the position open. This sounds simple, but it introduces a problem: how do you keep the perp price aligned with the actual Bitcoin spot price if there’s no expiration mechanism to force convergence? The answer is the **funding rate**. ## The Funding Rate: The Mechanism That Makes Perps Work Every 8 hours (on most platforms), traders on one side of the market pay traders on the other side. If perp prices are trading above spot — meaning there are more bulls than bears, and more demand for longs — long holders pay shorts. If perps trade below spot, shorts pay longs. The effect: the funding rate creates a financial incentive to trade against the crowd and bring the perp price back in line with spot. When lots of people are long and driving the perp price up, the funding rate becomes expensive for longs — discouraging more longs from entering and encouraging new shorts. It’s a clever mechanism. It mostly works. But it breaks down when markets move violently — in either direction, as August 2026 showed. When perps trade above spot | Longs pay shorts (discourages more longs) —|— When perps trade below spot | Shorts pay longs (discourages more shorts) Funding rate near 0 | Market roughly balanced Funding rate above 15% APR | Historically signals crowded long positioning before corrections That last row matters. A funding rate above 15% annualized has historically been a warning sign — it means there are so many longs in the market that they’re paying a steep premium to stay in their positions. In every major crash since 2020, extremely high funding rates preceded the unwind by days or weeks. But the reverse can matter just as much: by mid-2026, Bitcoin funding rates had swung from deeply negative readings — a sign of crowded short positioning — to a full round trip. ## Why Traders Love Them For traders, perps solve real problems that traditional futures don’t. **No rollover friction.** With a traditional futures contract, when expiry approaches, you have to close and reopen a new position. This creates transaction costs and sometimes unfavorable spreads around expiration dates. Perps eliminate that entirely. **Leverage.** Platforms commonly offer 10x, 20x, 50x — and some offshore exchanges offer up to 100x or more. That means a trader with $10,000 can control a $500,000 position at 50x leverage. The gains (and losses) scale accordingly. **24/7 trading.** Crypto never closes. Unlike stock futures that have overnight gaps and market hours, perps trade continuously — which aligns with both global crypto markets and a new generation of algo traders running 24/7 strategies. **Access to short positions.** It’s much easier to short an asset via perps than through borrowing mechanisms in spot markets. ## How Liquidation Cascades Work This is where it gets dangerous. When you hold a leveraged perp position, your exchange requires you to maintain a minimum margin level — a buffer of capital relative to your position size. If prices move against you enough to erode that buffer, you get **liquidated**: the exchange forcibly closes your position at a loss to protect itself. Here’s the cascade, using a long-side example: 1. Bitcoin drops 5%. 2. Traders holding 20x long positions have only a 5% buffer — those positions get liquidated. 3. The exchange sells their Bitcoin to close the position, adding more selling pressure to the market. 4. Bitcoin drops another 3%. 5. Now traders at 10x are getting margin calls. More forced selling. 6. The cycle repeats until leverage is purged from the system. This is exactly what happened on January 30, 2026 — over $2.56 billion in leveraged long positions liquidated in a single trading day. The same mechanism runs in reverse when short positions get crowded. On August 20, 2026, funding rates had been positive in 88 of the prior 90 eight-hour windows, running at an annualized rate of roughly 8-15% — but the actual positioning underneath that had built up a large short base betting against further upside. When Bitcoin instead rallied, those shorts got squeezed: $1.74 billion in short positions were liquidated in 24 hours, the second-biggest short squeeze in recorded crypto history. Bitcoin rose 7.5% to $69,117 and Ethereum rose 17.8% to $2,250 as the forced buying (shorts closing their positions by buying back Bitcoin) added fuel to the rally. These aren’t rare events. With the scale of open interest in perp markets now — often exceeding $50 billion in Bitcoin perps alone — even moderate price moves can trigger nine or ten figures of forced liquidations in either direction. ## The Systemic Risk Case Here’s why I think this warrants serious attention, beyond just individual trader risk. Perps were once isolated to crypto. The losses stayed within crypto. But as perp trading moves onto regulated U.S. exchanges — the CFTC’s May 2026 policy actions formally established a framework for listing crypto perpetual contracts, and Coinbase and Kalshi both offer them — the interconnections between perp markets and traditional financial institutions are growing. Consider the chain: - Institutional traders on perp platforms use leverage provided by prime brokers - Prime brokers fund those positions through repo markets and bank credit lines - A large enough liquidation event can create margin calls that ripple back into bank balance sheets - Banks managing collateral exposure to crypto positions may need to sell other assets to cover We saw a version of this in the 2022 crypto bear market — where the collapse of Terra/Luna and FTX created contagion that hit crypto-focused lenders, and that contagion then touched Silvergate and Signature Bank. Those were small banks. As perp trading scales up and brings in larger institutional players, and now mainstream retail platforms like Robinhood, the transmission mechanisms to the broader financial system become stronger. The other piece that concerns me is concentration. A handful of large algorithmic trading firms now account for a disproportionate share of perp volume. If those firms run similar strategies — which they often do, because they’re all chasing similar signal sets — their simultaneous unwinding in a stress scenario could be destabilizing in ways that are hard to model. The August 20 short squeeze is a small-scale example of exactly that dynamic: a crowded, one-sided position unwinding all at once. ## Real-World Examples **Example 1 — How leverage amplifies gains and losses:** Sarah puts $5,000 into a Bitcoin perp position with 20x leverage. She controls $100,000 of BTC exposure. Bitcoin rises 5% — she makes $5,000 (100% return on her actual capital). But if Bitcoin falls 5%, her position is wiped out entirely and she’s liquidated. The same 5% price move in either direction either doubles her money or erases it. This isn’t investing — it’s closer to options trading in terms of risk profile, except there’s no natural theta decay limiting the loss. **Example 2 — Funding rate as a warning sign:** Mark is an experienced trader who noticed BTC perp funding rates hitting 18% APR in January 2026 — a historically elevated level signaling extreme long crowding. He reduced his long exposure and added a small short position. Two weeks later, the January 30 crash hit and $2.56 billion in longs were liquidated in a single day. Mark’s short position profited while leveraged longs around him were wiped out. Reading the funding rate didn’t require predicting the crash — it just told him the market was fragile. **Example 3 — Getting caught on the wrong side of a squeeze:** Priya built a short position in mid-August 2026 after watching Bitcoin stall below its prior highs, expecting the pullback to continue. When Bitcoin instead rallied on August 20, her leveraged short was liquidated as part of the $1.74 billion squeeze that day. Her mistake wasn’t the thesis — plenty of traders were short at the time — it was sizing the position with enough leverage that a single day’s move against her could wipe it out entirely. ## Where This Goes From Here Perp trading is moving into mainstream finance whether regulators are ready or not. The U.S. regulatory framework is catching up — the CFTC’s May 2026 actions were a first step toward requiring proper margin rules, reporting, and customer protection, with the agency signaling more guidance to come on funding-rate transparency and oracle governance. That’s directionally positive. But the leverage ratios available on offshore platforms — which still handle a majority of global perp volume — remain extreme. And the global coordination required to address systemic risk from an instrument that trades 24/7 across dozens of jurisdictions is genuinely hard. I’ll be watching the open interest levels, funding rates, and regulatory developments closely. This is one of those things where the risk isn’t obvious until it becomes obvious — and it can become obvious in either direction, as the August squeeze showed. I’ll update this page as things develop. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates.* ## Common Issues to Watch Out For **Misunderstanding that leverage amplifies losses just as much as gains.** Platforms make leverage look like a free upgrade — more exposure for the same capital. It’s not. It’s a double-edged amplifier. A 10x leveraged position in a normally volatile asset like Bitcoin can hit liquidation on a routine 10% price swing. Many retail traders discover this the hard way. **Holding through funding rate payments without accounting for the cost.** If you hold a long position in a bull market where longs are crowded, you may be paying 0.05% every 8 hours in funding — which compounds to roughly 54% APR. On a position held for months, the funding cost alone can eat a significant portion of your gains even if the price moves in your favor. **Assuming a crowded short position is automatically “safe.”** The August 2026 squeeze is a reminder that betting against the crowd (shorting into elevated long positioning, or vice versa) doesn’t mean your own position is immune to a liquidation cascade — it just moves the risk to the other side of the trade. **Assuming liquidation is the worst case.** On some platforms during extreme volatility, the auto-deleveraging system (ADL) can partially close your winning position to cover someone else’s losing one. This is disclosed in the fine print but surprises many traders the first time it happens. **Conflating perp trading with investing.** Perpetual futures are trading instruments. Holding a Bitcoin perp long-term is not the same as holding Bitcoin — you’re paying funding costs, you can be liquidated, and the position has no claim on the underlying asset. For long-term exposure, spot holdings or regulated ETFs are different instruments with different risk profiles. If you’re weighing whether to hold crypto directly at all, see my [breakdown of the factors worth considering before investing](https://savingtoinvest.com/to-crypto-or-not-5-factors-to-consider-before-investing-and-joining-the-cryptocurrency-craze/) for the case for and against spot exposure. Frequently Asked Questions QWhat is a perpetual future (perp)? AA perpetual future is a derivative contract that lets you take a leveraged long or short position on an asset with no expiration date. Unlike traditional futures that must be settled or rolled over at expiry, perps can be held indefinitely. They stay aligned with spot prices through a funding rate - a recurring payment between long and short traders, typically every 8 hours. QHow does leverage work in perpetual futures? ALeverage lets you control a larger position with less capital. At 20x leverage, $5,000 of your own money controls a $100,000 position. If the price moves 1% in your favor, you make $1,000 (20% on your actual capital). If it moves 1% against you, you lose $1,000. At 20x, a 5% adverse move wipes out your entire position and triggers liquidation. Leverage ratios of 100x or more are available on some platforms, meaning even tiny price moves can cause total loss. QWhat is a liquidation cascade, and can it happen to short positions too? AWhen an asset price moves sharply, leveraged positions that no longer have enough margin are forcibly closed by exchanges. This forced buying or selling adds pressure in the direction of the move, triggering more margin calls and more forced trades. This feedback loop - called a liquidation cascade - can amplify price moves far beyond what fundamentals would suggest, and it works on both longs and shorts. On January 30, 2026, over $2.56 billion in long positions were liquidated in a single day; on August 20, 2026, $1.74 billion in short positions were liquidated in a single day when Bitcoin rallied unexpectedly. QWhy are perpetual futures now considered a systemic risk? AAs perp trading moves from crypto-native platforms onto regulated U.S. exchanges, institutional connections to traditional financial markets are growing. Large liquidation events can trigger margin calls at prime brokers, which ripple into bank balance sheets and potentially force sales of other assets. The scale of open interest - often tens of billions in Bitcoin perps alone - means even moderate price moves can trigger massive forced trading across interconnected markets. QWhat is the funding rate and why does it matter? AThe funding rate is a recurring payment exchanged between long and short perp traders - usually every 8 hours - that keeps the perp price aligned with spot. When longs dominate, they pay shorts (discouraging further long crowding). When shorts dominate, they pay longs. A funding rate above roughly 15% APR has historically signaled crowded long positioning that precedes major corrections, though August 2026 showed that crowded short positioning carries its own squeeze risk. QAre perpetual futures regulated in the U.S.? AAs of 2026, the CFTC approved Bitcoin perpetual futures from regulated platforms like Kalshi, and Coinbase is offering perps through its regulated derivatives exchange. This brings U.S. customer protections to some perp trading for the first time. However, the majority of global perp volume still flows through offshore platforms with more extreme leverage ratios and less regulatory oversight. **Categories:** Taxes and Retirement --- ### [How to Invest Without FOMO: Smart Strategies for 2026](https://savingtoinvest.com/how-to-invest-without-fomo-smart-strategies/) **Published:** April 26, 2026 **Author:** Andy **Content:** ### Key Takeaways - Ignore the Noise: Social media hype is usually a lagging indicator of a price peak - FOMO fades, bad investment decisions may not - Use the 5% Rule: Scratch your speculative itch without ruining your financial future - Diversification is Key: See the portfolio composition provided below - Consider AI 'adopters' (companies using AI to boost their own business), not just AI 'creators,' as a lower-drama way to get exposure Does it feel like you missed the recent crypto surge or AI tech stock rally? This feeling is the Fear Of Missing Out, or FOMO. It drives many investors to buy at the peak and sell in a panic. This is a story that keeps repeating through history during any extended hype cycle. We have all been there, watching from the sidelines while others seem to get rich. In 2026, the speed of information makes this pressure feel even more intense — and the AI trade keeps giving it new fuel. The S&P 500 dropped more than 4% off its June all-time high on AI-spending doubts, then round-tripped the whole move and set a fresh record above 7,730 in late August after Nvidia posted a blowout quarter — revenue up 106% year-over-year. Nvidia’s stock jumped 8.7% in a single day on that report, its best day since April 2025. That kind of swing, in either direction, is exactly the setup that triggers FOMO. Recent data shows that 1 in 8 American investors admit FOMO currently dictates their financial moves. Even worse, 18% of us have made panic-driven trades based on “doomscrolling” through social media. This emotional roller coaster is the fastest way to drain your hard-earned savings. If you want to build real wealth, you must stop chasing “the next big thing.” We are going to show you exactly where to put your money to stay profitable. You can achieve great returns without constantly checking your phone or feeling left behind. Covered in this Article: [Toggle](#) - [Why Your Brain Falls for the FOMO Trap](#Why_Your_Brain_Falls_for_the_FOMO_Trap) - [The Cost of Emotional Investing in 2026](#The_Cost_of_Emotional_Investing_in_2026) - [Where to Invest for Stress-Free Growth](#Where_to_Invest_for_Stress-Free_Growth) - [AI Creators vs. AI Adopters: Another Way to Diversify](#AI_Creators_vs_AI_Adopters_Another_Way_to_Diversify) - [Build a “FOMO-Proof” Portfolio Structure](#Build_a_%E2%80%9CFOMO-Proof%E2%80%9D_Portfolio_Structure) - [The “5% Rule” for Speculative Trades](#The_%E2%80%9C5_Rule%E2%80%9D_for_Speculative_Trades) - [Strategies to Reclaim Your Financial Focus](#Strategies_to_Reclaim_Your_Financial_Focus) - [What the Data Says About 2026 Trends](#What_the_Data_Says_About_2026_Trends) - [Common Mistakes to Watch Out For](#Common_Mistakes_to_Watch_Out_For) - [You Are Already Ahead of the Curve](#You_Are_Already_Ahead_of_the_Curve) ## Why Your Brain Falls for the FOMO Trap Our brains are hardwired to follow the herd for safety. In the investing world, this instinct often leads us directly into a financial trap. When an asset price skyrockets, social proof makes us believe the gain will last forever. You see neighbors and influencers profiting, which triggers a deep sense of “regret aversion.” Research from early 2026 suggests that Gen Z is the most vulnerable to these emotions. About 17% of younger investors say FOMO frequently drives their portfolio choices. The problem is that by the time you hear about a “hot” tip, the professional money has already moved. You end up buying the “top,” providing the liquidity for early investors to exit. ## The Cost of Emotional Investing in 2026 Emotional trading is not just stressful; it is statistically expensive. Investors who follow hype often ignore fundamental valuations and cash flow. A recent sentiment report found that 43% of investors believe emotions will hurt their performance this year. A separate survey found that 25% of retail investors have panic-sold during a geopolitical event — like the renewed U.S.-Iran conflict that rattled markets in late August 2026 — only to watch the market recover within weeks. When you trade on excitement or fear, you often ignore the actual risk of the asset. - **Higher Volatility:** Hype-driven assets like certain cryptos or meme stocks can drop 20% in hours. - **Tax Inefficiency:** Frequent buying and selling leads to short-term [capital gains taxes](https://savingtoinvest.com/capital-gains-tax-short-and-long-term-rates-plus-other-factors-to-consider/). - **Missed Compound Growth:** Moving money constantly prevents your investments from growing over time. ## Where to Invest for Stress-Free Growth To avoid FOMO, you need a “set it and forget it” strategy. You want assets that grow steadily while the world chases the latest shiny object. We recommend focusing on “boring” but powerful sectors that have shown resilience. These investments allow you to participate in market gains without the anxiety of a crash. ### Broad-Based Index Funds The ultimate FOMO killer is owning the entire market. If a new tech giant emerges, you already own it through an S&P 500 or Total Market fund. You no longer have to guess which individual company will win the AI race. As the winners grow, they represent a larger piece of your index fund automatically. ### Infrastructure and Energy Security In 2026, the real money is moving into the “picks and shovels” of the economy. This includes data centers, power generation, and supply chain resilience — a theme that’s now backed by roughly $730 billion in combined 2026 capex from the four largest hyperscalers alone. These companies provide the backbone for the technologies everyone else is hyping up. They often pay steady dividends, which provides a psychological “win” even when prices flatten. I go deeper on this specific theme in my [AI infrastructure investing primer](https://savingtoinvest.com/ai-infrastructure-investing-how-to-think-about-the-trade-behind-the-ai-boom/). ### High-Yield Cash and Short-Term Bonds Safety is becoming a top priority for smart investors this year. Roughly 55% of American investors now consider cash or [high-yield savings](https://savingtoinvest.com/high-yield-savings/) as the safest asset class. Holding a portion of your wealth in cash gives you “dry powder.” When the FOMO-driven bubble inevitably pops, you have the funds to buy high-quality assets at a discount. ## AI Creators vs. AI Adopters: Another Way to Diversify Most FOMO-driven buying concentrates on the “creators” — the handful of companies building the chips and foundational AI models everyone reads about. But the companies *using* AI to run their own business better rarely get the same headlines, and they’re often a lower-drama way to get exposure to the theme. Think about a small retailer using an AI tool to manage inventory, forecast demand, or automate customer service. That adoption can improve margins and efficiency without the retailer ever writing a line of AI code or trading at a “priced for perfection” multiple. Spreading your exposure across both creators and adopters — rather than concentrating in the handful of names driving the headlines — is a genuinely useful diversification lever specific to this hype cycle, on top of the broader diversification steps below. ## Build a “FOMO-Proof” Portfolio Structure A [balanced portfolio](https://savingtoinvest.com/importance-of-diversification/) is your best defense against impulsive decisions. You should allocate your capital across different buckets to satisfy your needs for growth and safety. We suggest a diversified approach that covers both traditional and emerging themes. This ensures you are never truly “missing out” on the broader economic expansion. **Asset Category** | **Target Allocation** | **Purpose** —|—|— Core Equities (ETFs) | 50-60% | Long-term growth and market participation. Fixed Income / Bonds | 20-30% | Income generation and price stability. Cash / Money Markets | 10% | Liquidity and “buy the dip” opportunities. Speculative / “Fun” Money | 5% | Satisfying the urge to trade without risking the farm. ## The “5% Rule” for Speculative Trades If you truly cannot resist the urge to chase a trend, use the 5% Rule. Limit your speculative investments to just 5% of your total net worth. This allows you to “play the game” and test new ideas like AI startups or digital assets. If the investment goes to zero, your lifestyle and retirement remains perfectly safe. If that 5% turns into a massive winner, you still get to enjoy the upside. This strategy turns FOMO into a controlled experiment rather than a financial catastrophe. *Things move fast in a hype cycle. [Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) and I’ll update this page as the AI trade develops.* ## Strategies to Reclaim Your Financial Focus Investing is 10% math and 90% temperament. You must create barriers that stop you from making high-speed, emotional mistakes. ### Stop the “Doomscrolling” Financial media and social platforms are designed to keep you agitated. They profit from your clicks, not your investment returns. A recent survey found 40% of retail investors have consulted an AI tool during a FOMO or fear-driven moment — a mixed bag, since 34% say it helped them make money and 12% say it led to a loss. Try to limit your portfolio check-ins to once a month or once a quarter. This reduces the urge to react to daily price swings that don’t matter in the long run. ### Automate Your Contributions Dollar-cost averaging is the most effective way to ignore market noise. Set up an automatic transfer from your bank to your brokerage every payday. You will buy more shares when prices are low and fewer when they are high. This removes the “timing the market” stress that fuels FOMO. ### Focus on Your “Why” Your financial goals are personal and have nothing to do with what a stranger on X is doing. Whether you want a house or early retirement, keep that goal front and center. Compare your progress to your own milestones, not someone else’s highlight reel. This shift in perspective is the ultimate cure for investment anxiety. ## What the Data Says About 2026 Trends The 2026 market is defined by a shift toward “Financial Fortitude.” Investors are moving away from speculative crypto and toward gold, commodities, and large-cap stocks. Recent surveys indicate that 29% of investors are shifting into more conservative options this year. This “flight to quality” suggests that the era of easy, hype-driven gains is cooling, even in a year where the S&P 500 has still set multiple all-time highs. Even Gen Z is leading this trend, with 36% of young traders moving toward safer options. They are realizing that consistency beats a “lucky break” every single time. ## Common Mistakes to Watch Out For - **Buying after a stock has already gone viral.** By the time a trade shows up in your feed, professional money has usually already moved — you’re often providing the exit liquidity, not catching the wave. - **Treating a “5% Rule” allocation as a suggestion.** I see people say they’re keeping speculative bets small, then keep adding to a winner until it’s 20%+ of their portfolio without noticing. - **Confusing AI infrastructure spending with guaranteed returns.** Real revenue growth and an overpriced stock aren’t mutually exclusive — check the section on AI infrastructure investing for the distinction. - **Panic-selling the same hype trade on the way down.** The FOMO cycle often ends with the same emotional trading in reverse — selling in a panic at the bottom after buying in a panic at the top. - **Ignoring the tax cost of frequent trading.** Short-term capital gains are taxed as ordinary income, which quietly erodes the returns from chasing momentum trades. ## You Are Already Ahead of the Curve The fact that you are looking for a strategy to avoid FOMO puts you ahead of most retail traders. Most people only realize they were being emotional after they have lost money. By focusing on broad market growth and maintaining a cash cushion, you build real resilience. You can sleep soundly knowing your wealth is growing on a solid foundation. Stop chasing the green candles on a screen. Start building a portfolio that serves your life, not your ego. We believe that the best investment is the one that allows you to stop worrying about money. Follow these steps, and you will find that the “fear of missing out” simply fades away. For related reading, see [Stock Market Volatility in 2026: Why Now Is Still Not the Time to Sell](https://savingtoinvest.com/stock-market-volatility-now-is-not-time/). Frequently Asked Questions QWhat is investment FOMO and why does it matter? AFOMO (Fear Of Missing Out) is the anxiety that drives investors to buy an asset simply because its price is rising fast, often near a peak, then sell in a panic when it drops. It matters because it consistently leads to buying high and selling low - the opposite of a sound strategy. QWhat is the 5% Rule for speculative investing? AIt's a cap that limits speculative or 'fun money' bets - individual AI stocks, crypto, or other trend-chasing trades - to 5% of your total net worth, so a total loss on that slice doesn't threaten your broader financial plan. QShould I invest in AI companies at all if I'm worried about a bubble? AYou don't have to avoid the theme entirely. Broad index funds already give you exposure to the largest AI winners, and splitting exposure between AI 'creators' and AI 'adopters' is one way to participate without concentrating risk in the most hyped, highest-valued names. QHow is FOMO investing different from normal market participation? ARegular, scheduled investing (like dollar-cost averaging into an index fund) buys consistently regardless of headlines. FOMO investing reacts to hype and price momentum specifically, usually entering after a large run-up has already happened. QWhat should I do if I already made a FOMO-driven trade I regret? AAvoid compounding the mistake by panic-selling at a loss the same way you panic-bought. Assess whether the position still fits your allocation targets, and if it doesn't, unwind it deliberately - ideally considering the tax impact - rather than reactively. **Categories:** Taxes and Retirement --- ### [Stock Market Volatility in 2026: Why Now Is Still Not the Time to Sell](https://savingtoinvest.com/stock-market-volatility-now-is-not-time/) **Published:** November 20, 2008 **Author:** Andy **Content:** ### Key Takeaways - The S&P 500 actually pushed to a new all-time high in late August (7,730.99) before easing back to close the month around 7,686 - the June-to-July dip fully round-tripped. - A fresh source of volatility has emerged: renewed U.S.-Iran military exchanges around the Strait of Hormuz pushed oil above $85 and Treasury yields to their highest since January 2025. - Nvidia's blowout August 26 earnings drove the market's best day since early August, a reminder that AI-spending sentiment can swing prices as fast in either direction. - The Fed's next decision lands September 15-16, with the fed funds rate currently at 3.50%-3.75% and forecasters split between a hold and a hike given energy-driven inflation pressure. - Panic-selling during a drop is still the single most reliable way to convert a paper loss into a permanent one - that hasn't changed no matter which headline is driving the week. The S&P 500 hit an all-time high of 7,621 in June 2026, slid more than 4% into mid-July on AI-spending doubts, then round-tripped the whole move and set a fresh all-time high of 7,730.99 on August 26 — before wobbling again at the very end of the month as a six-month-old conflict between the U.S. and Iran flared back up. None of that is a crash. The market’s actually higher than it was when I last updated this page. But the whiplash — new highs one week, geopolitical risk the next — is exactly the kind of chop that gets people asking me the same question I’ve fielded since 2008: should I sell? I’ve written some version of this post during the 2008 financial crisis, the March 2020 COVID crash, and the 2022 bear market. The specific trigger changes — mortgage-backed securities, a pandemic, inflation and rate hikes, and now AI-bubble jitters layered on top of a Middle East conflict — but my answer hasn’t. Covered in this Article: [Toggle](#) - [Why the Market Is Swinging Right Now](#Why_the_Market_Is_Swinging_Right_Now) - [I’ve Seen This Movie Before](#Ive_Seen_This_Movie_Before) - [What Not to Do](#What_Not_to_Do) - [What to Actually Do When the Market Drops](#What_to_Actually_Do_When_the_Market_Drops) - [When Selling Actually Makes Sense](#When_Selling_Actually_Makes_Sense) - [Looking Ahead: What I’m Watching](#Looking_Ahead_What_Im_Watching) - [Common Mistakes to Watch Out For](#Common_Mistakes_to_Watch_Out_For) ## Why the Market Is Swinging Right Now This year’s volatility has had two distinct drivers, and they’ve traded off the lead role. The first is the AI-spending question: doubts about whether the massive hyperscaler capex buildout is going to pay off fast enough to justify current valuations. That drove the June-to-July pullback, and it resurfaced briefly around Meta’s disappointing late-July earnings reaction before Nvidia’s August 26 blowout quarter — revenue up 106% year-over-year — helped push the S&P and Nasdaq to their best day since early August. The second, newer driver is geopolitical. The U.S. and Iran, locked in a stalemate over control of the Strait of Hormuz since early 2026, traded fire again on August 31 for the first time in about a month — hitting oil tankers and Iranian rocket launchers near the strait. Oil crossed $85 a barrel and the 10-year Treasury yield jumped to its highest level since January 2025 on the news, even though the strait itself has stayed open to shipping. The U.S. Treasury Department’s internal report warning that an AI-driven downturn could ripple across stock markets, private credit, and the utilities and data-center builders financing the buildout — the one explicitly comparing today’s spending to the 2000 dotcom bust — is still just a draft, not official policy. But it’s part of why “AI bubble” headlines keep resurfacing even as the S&P sets new highs. Valuations have actually eased somewhat even as prices climbed: the S&P 500’s forward P/E ratio dipped below 20x by late July and was sitting around 19.5-20x by late August, down from the low-20s range earlier in the year, as earnings growth has partly caught up to prices. Nvidia alone pulled in $96.2 billion in quarterly revenue in its latest report, up 106% year over year — real growth, not vaporware. The disagreement is still about whether the *price* of that growth already assumes years of flawless execution, but the gap has narrowed some. ## I’ve Seen This Movie Before In 2008, the Dow was in free fall and I remember writing that the urge to sell was strong, even as my own portfolio was down more than 30% that year. In March 2020, it felt like the whole world was ending along with the market. In 2022, it was inflation and rate hikes grinding the market down for months, not days. Each time, the headlines said this time was different. Each time, staying invested — not timing a bottom perfectly, just staying in — worked out better than getting out. That doesn’t guarantee it plays out the same way this time. But it’s the pattern I’ve watched for almost two decades of writing about this, across three genuinely distinct kinds of crises. ## What Not to Do Selling out of the market during a drop locks in a paper loss as a real one. It also requires being right twice — you have to correctly time the exit *and* the re-entry, and most investors (professionals included) aren’t consistently good at either. The data backs this up: investors who sold during the 2020 COVID crash and waited for things to “feel safe” again missed one of the fastest recoveries in market history. The S&P 500 round-tripped its entire pandemic loss in about five months. This year’s own June-to-August round trip is a smaller-scale version of the same lesson. ## What to Actually Do When the Market Drops **Run the cash-needs test first.** If you need the money in the next 1–3 years — a house down payment, tuition, a planned expense — it shouldn’t have been fully in stocks to begin with, and a downturn is a signal to get more conservative with that specific bucket, not your whole portfolio. **Keep contributing on schedule.** If you’re dollar-cost-averaging into a 401(k) or IRA, a drop means your regular contribution buys more shares at a lower price. Stopping contributions during a dip is one of the more common mistakes I see — it’s the opposite of buy low, sell high. **Rebalance instead of exiting.** If a drop has pushed your portfolio out of your target allocation (say, more bonds than you want because stocks fell), rebalance back toward your target rather than abandoning stocks altogether. **Consider tax-loss harvesting, not a full exit.** If you hold individual positions at a loss outside a retirement account, selling those specific losers to offset gains elsewhere — while staying invested in the broader market — is a genuinely useful move during a downturn. I cover the mechanics and the wash-sale rule on the [capital gains tax page](https://savingtoinvest.com/capital-gains-tax-short-and-long-term-rates-plus-other-factors-to-consider/). **Check your concentration, not just your total balance.** If a big chunk of your portfolio is riding on AI-adjacent names specifically, a volatility spike in that theme hits you harder than it hits someone with a [diversified portfolio](https://savingtoinvest.com/importance-of-diversification/). This is a good moment to actually look at what you own, not just the top-line number. **Keep a cash cushion outside the market.** Having a few months of expenses parked in a [high-yield savings account](https://savingtoinvest.com/high-yield-savings/) is what lets you ride out volatility without being forced to sell equities at a bad time to cover an emergency. *Things can shift quickly from here. [Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) and I’ll update this page as the AI-spending and Iran-conflict stories develop.* ## When Selling Actually Makes Sense Selling isn’t always the wrong call. A few situations where it genuinely is: - You’re holding a specific company facing real fundamental damage (not just a sector-wide selloff), and the thesis you bought it on no longer holds. - Your time horizon changed — retirement moved up, or you need the funds sooner than you originally planned. - Your portfolio became so concentrated in one theme (AI infrastructure, a single employer’s stock, crypto) that a single sector’s swings can meaningfully affect your finances. In all three cases, the trigger is a change in your own situation or the underlying company — not the fact that the market had a rough week. ## Looking Ahead: What I’m Watching A few things will determine whether this settles into a normal pattern of chop or turns into something bigger. The Fed’s next decision lands September 15-16 — the fed funds rate currently sits at 3.50%-3.75%, and forecasters are genuinely split between a hold and a quarter-point hike, with energy costs from the Iran conflict adding upside inflation risk to the calculus. Whether AI infrastructure spenders keep showing revenue that catches up to the capex will get its next real test during Q3 earnings in October. And whether the Strait of Hormuz standoff stays a contained, six-month stalemate or escalates further is now a genuine wildcard for oil prices and market sentiment that wasn’t on my radar as prominently a month ago. None of these resolve in the next few weeks. I’ll keep this page updated as the picture becomes clearer. ## Common Mistakes to Watch Out For I get some version of these questions every time the market has a rough stretch: - **Panicking near the bottom.** The scariest-feeling days are often close to a local low, not the start of a long slide — but you can’t know that in the moment, which is exactly why a pre-set plan matters more than a gut reaction. - **Stopping retirement contributions.** Pausing your 401(k) or IRA contributions during a downturn means missing out on buying at lower prices — it’s a bigger mistake than it looks like at the time. - **Checking your portfolio daily.** Frequent checking makes short-term noise feel more significant than it is and pushes people toward emotional decisions. - **Confusing a sector wobble with a market crash.** AI-related volatility, or a geopolitical headline, isn’t the same as a broad recession signal — check whether the pullback is concentrated in one theme before assuming it’s systemic. - **Trying to time the exact bottom to buy back in.** Missing just the 10 best market days over a decade can cut your total return roughly in half — the cost of waiting for a “clear” signal is usually higher than the cost of staying invested. I’ve also written more about [How to Invest Without FOMO: Smart Strategies for 2026](https://savingtoinvest.com/how-to-invest-without-fomo-smart-strategies/) and [AI Infrastructure Investing: How to Think About the Trade Behind the AI Boom](https://savingtoinvest.com/ai-infrastructure-investing-how-to-think-about-the-trade-behind-the-ai-boom/). Frequently Asked Questions QShould I sell my stocks when the market drops? AFor most long-term investors, no. Selling during a drop converts a paper loss into a real one and requires correctly timing both the exit and the re-entry. The exceptions are if you need the cash within 1-3 years, your specific holding has broken fundamentals, or your portfolio has become dangerously concentrated in one theme. QIs this a good time to buy stocks during the 2026 volatility? AIf you have a long time horizon and available cash, downturns have historically been reasonable entry points - but nobody can reliably call the exact bottom. Continuing regular contributions (dollar-cost averaging) captures much of this benefit without trying to time it. QWhat's actually driving the market's swings right now? ATwo things, trading off the lead role: doubts about whether AI infrastructure spending will generate enough revenue to justify its cost, and a renewed flare-up in the U.S.-Iran conflict around the Strait of Hormuz that pushed oil above $85 in late August 2026. QShould I stop my 401(k) contributions during a market downturn? AI don't recommend it. Contributions made during a downturn buy more shares at a lower price, which is the entire point of dollar-cost averaging. Stopping contributions locks in the 'buy high' side of that equation without the 'buy low' benefit. QWhat is tax-loss harvesting and does it help right now? AIt's selling an investment at a loss (outside a retirement account) to offset capital gains elsewhere on your taxes, then typically reinvesting in a similar but not identical asset to stay invested. It's one of the few moves that turns a downturn into an actual tax advantage - see the capital gains tax page for the wash-sale rules that apply. QIs the AI bubble going to cause a bigger crash? ANobody knows for certain. The Treasury has reportedly drafted an internal report warning about the risk, and Nvidia's blowout August earnings argued the other way - that demand is still outrunning supply. The S&P 500's forward P/E has actually eased to around 19.5-20x as earnings growth catches up to prices, down from the low-20s earlier in the year. It's a genuine risk to watch, not a settled outcome. QWhen is the next Fed interest rate decision, and could rates go up? AThe next FOMC meeting is September 15-16, 2026. The fed funds rate currently sits at 3.50%-3.75%. Forecasters are split - some expect a hold, while others now see a possible quarter-point hike given inflation pressure from higher energy prices tied to the Iran conflict. **Categories:** Finance and Investing 101, Stock Reviews **Tags:** market, Selling, stocks, volatility --- ### [2027 Pay Raise for 2026 Federal Employee GS Charts — Salary Tables and Latest Updates](https://savingtoinvest.com/federal-employee-gs-pay-chart-and-raise/) **Published:** September 9, 2024 **Author:** Andy **Content:** ### Key Takeaways - Trump's August 26, 2026 letter confirmed a 2027 pay freeze for most civilian federal employees at 2026 rates. - Federal law enforcement personnel get a 3.8% raise instead, via OPM's special rate authority, same as 2026. - The same letter set the military's 2027 raise at 7%-5%, tiered by rank. - The FAIR Act's proposed 4.1% raise never advanced past committee and is now moot for 2027. The General Schedule (GS) pay scale sets base pay for roughly 1.5 million civilian federal employees. This page tracks confirmed raises and the latest proposals for each year. For 2027, the debate is over: President Trump’s August 26, 2026 letter to Congress confirms a pay freeze for most civilian employees, with law enforcement carved out for a 3.8% raise. (For reference, the 2026 raise is confirmed at 1%.) Covered in this Article: [Toggle](#) - [2027 GS Pay Raise: Freeze Confirmed, Law Enforcement Gets 3.8%](#2027_GS_Pay_Raise_Freeze_Confirmed_Law_Enforcement_Gets_38) - [The FAIR Act’s 4.1% Counter-Proposal Never Advanced](#The_FAIR_Acts_41_Counter-Proposal_Never_Advanced) - [What Each Scenario Would Mean in Dollars](#What_Each_Scenario_Would_Mean_in_Dollars) - [Could Congress Still Override the Freeze?](#Could_Congress_Still_Override_the_Freeze) - [Key Dates to Watch](#Key_Dates_to_Watch) - [2026 GS Pay Raise: 1% Under Trump](#2026_GS_Pay_Raise_1_Under_Trump) - [2026 GS Base Pay Table (Annual, by Grade and Step)](#2026_GS_Base_Pay_Table_Annual_by_Grade_and_Step) - [How to Read This Table: 3 Examples](#How_to_Read_This_Table_3_Examples) - [Locality Pay: Duty Station, Not Home Address](#Locality_Pay_Duty_Station_Not_Home_Address) - [2025 GS Pay Raise: 1.7%](#2025_GS_Pay_Raise_17) - [2024 GS Pay Raise: 4.7% (Record Raise)](#2024_GS_Pay_Raise_47_Record_Raise) - [2023 GS Pay Raise: 4.6% Average](#2023_GS_Pay_Raise_46_Average) - [2022 GS Base Pay Raise: 2.7% Average](#2022_GS_Base_Pay_Raise_27_Average) - [2021 GS Pay Raise: 1%](#2021_GS_Pay_Raise_1) - [2020 GS Pay Raise: 3.1%](#2020_GS_Pay_Raise_31) - [Prior Year GS Pay Raise History](#Prior_Year_GS_Pay_Raise_History) ## 2027 GS Pay Raise: Freeze Confirmed, Law Enforcement Gets 3.8% **Status as of August 28, 2026: Freeze confirmed.** In an August 26, 2026 letter to House Speaker Mike Johnson, President Trump formally set the 2027 pay adjustment at zero for most civilian GS employees — base and locality pay held at 2026 rates. Law enforcement personnel are carved out for a 3.8% raise via OPM’s special rate authority. Congress could still override this through appropriations legislation before a final executive order in December, but no override effort had emerged as of this letter. The Trump administration’s [FY2027 budget](https://www.whitehouse.gov/omb/budget/), submitted to Congress in spring 2026, was silent on civilian pay — a signal OMB officials said at the time meant a planned freeze. That signal became official on August 26, 2026, when Trump transmitted the annual “alternative pay plan” letter required under the Federal Employees Pay Comparability Act (FEPCA). The letter states plainly that “base pay and locality pay for civilian Federal employees will not change from the 2026 rates.” Without this alternative plan, the law’s default formula would have triggered a 3.1% across-the-board base increase plus an average 20.6% jump in locality pay — a combined cost the letter puts at $26 billion in the first year alone. Trump’s letter cites that price tag, along with “fiscal responsibility,” as the reason for setting the adjustment at zero. That’s a sharp contrast with what the military is getting: the same letter sets a [tiered raise up to 7%](https://savingtoinvest.com/military-pay-charts-basic-pay-tables-raise/) for service members — one of the largest gaps between military and civilian federal pay in modern history. ### The FAIR Act’s 4.1% Counter-Proposal Never Advanced Democratic lawmakers had introduced the Federal Adjustment of Income Rates (FAIR) Act ([H.R. 7480](https://www.congress.gov/bill/119th-congress/house-bill/7480)), led by Rep. James Walkinshaw (D-VA) in the House and Sen. Brian Schatz (D-HI) in the Senate, as a counter-proposal. The FAIR Act would have provided: - **3.1% across-the-board base pay increase** - **1.0% average locality pay adjustment** - **4.1% total average increase** effective January 2027 Even with growing co-sponsor support (around 25 by August 2026, up from 19 in February), the bill never received a hearing or markup in the House Oversight and Government Reform Committee. The FAIR Act has been reintroduced in various forms since 2014 and has never passed as standalone legislation — and Trump’s August 26 letter effectively settled the question for 2027 unless Congress acts through the appropriations process instead. ### What Each Scenario Would Mean in Dollars The table below shows the impact on base pay (Step 1) at common GS grades, using 2026 confirmed figures as the baseline. Locality pay is on top of these amounts and varies by area. Grade2026 Base (Step 1)Freeze (0%)FAIR Act (3.1% base)DifferenceGS-5$34,799$34,799$35,878+$1,079GS-7$43,106$43,106$44,442+$1,336GS-9$52,727$52,727$54,362+$1,635GS-11$63,795$63,795$65,773+$1,978GS-12$76,463$76,463$78,833+$2,370GS-13$90,925$90,925$93,744+$2,819GS-14$107,446$107,446$110,777+$3,331GS-15$126,384$126,384$130,302+$3,918 *Base pay only, excludes locality pay. The Freeze column reflects the confirmed 2027 outcome; the FAIR Act column is a hypothetical shown for comparison since that bill never advanced.* > Law enforcement officers (e.g., ICE, DEA) on the GS pay scale will get a 3.8% raise in 2027, confirmed in the same August 26 letter — matching the treatment they received in 2026. ### Could Congress Still Override the Freeze? The clearest signal that the freeze would hold: in April 2026, House Republican appropriators **omitted any civilian federal pay raise from the FY2027 financial services spending bill**. Rep. David Joyce (R-OH), chairman of the financial services and general government subcommittee, made clear the GOP would not override the President on federal workforce compensation. A Democratic amendment offered by Rep. Steny Hoyer (D-MD) to add a 3.1% raise failed by four votes. As of the president’s August 26 letter, the Senate still had not released its own version of the spending bill, leaving no active vehicle in Congress to challenge the freeze. Congress can technically still add a raise through appropriations legislation before year-end, but nothing in motion suggests that will happen. ### Key Dates to Watch - **August 26, 2026 (confirmed):** President Trump transmitted the alternative pay plan letter to Congress, confirming the freeze for civilian employees and the 3.8% law enforcement raise — five days ahead of the statutory August 31 deadline. - **Fall 2026:** Congress could still add a civilian raise through appropriations legislation; no such effort was underway as of the letter. - **December 2026:** A presidential executive order is typically issued to formally lock in the following January’s pay rates — expected to follow the letter’s terms absent a change from Congress. I’ll update this page if Congress moves to override the freeze, and again when the executive order is issued in December. [Subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) when the 2027 rate is finalized. --- ## 2026 GS Pay Raise: 1% Under Trump Despite real fears of a full pay freeze, the Trump administration proposed a **1% across-the-board base pay increase** for 2026 via its [alternative pay plan submission](https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/) to Congress. Locality pay was kept unchanged from 2025 levels. The raise took effect January 2026. An exception applied to certain federal law enforcement personnel — including ICE agents — who received an additional **3.8%**, bringing their total raise in line with the 2026 military pay raise. For a federal employee earning $60,000/year, the 1% raise adds $600/year — about $46/month before taxes. ### 2026 GS Base Pay Table (Annual, by Grade and Step) *Salary Table 2026-GS — Incorporating the 1% General Schedule Increase, effective January 2026. Excludes locality pay.* GradeStep 1Step 2Step 3Step 4Step 5Step 6Step 7Step 8Step 9Step 101$22,584$23,341$24,092$24,840$25,589$26,028$26,771$27,519$27,550$28,2482$25,393$25,997$26,839$27,550$27,858$28,677$29,496$30,315$31,134$31,9533$27,708$28,632$29,556$30,480$31,404$32,328$33,252$34,176$35,100$36,0244$31,103$32,140$33,177$34,214$35,251$36,288$37,325$38,362$39,399$40,4365$34,799$35,959$37,119$38,279$39,439$40,599$41,759$42,919$44,079$45,2396$38,791$40,084$41,377$42,670$43,963$45,256$46,549$47,842$49,135$50,4287$43,106$44,543$45,980$47,417$48,854$50,291$51,728$53,165$54,602$56,0398$47,738$49,329$50,920$52,511$54,102$55,693$57,284$58,875$60,466$62,0579$52,727$54,485$56,243$58,001$59,759$61,517$63,275$65,033$66,791$68,54910$58,064$59,999$61,934$63,869$65,804$67,739$69,674$71,609$73,544$75,47911$63,795$65,922$68,049$70,176$72,303$74,430$76,557$78,684$80,811$82,93812$76,463$79,012$81,561$84,110$86,659$89,208$91,757$94,306$96,855$99,40413$90,925$93,956$96,987$100,018$103,049$106,080$109,111$112,142$115,173$118,20414$107,446$111,028$114,610$118,192$121,774$125,356$128,938$132,520$136,102$139,68415$126,384$130,597$134,810$139,023$143,236$147,449$151,662$155,875$160,088$164,301 *Source: [OPM Salary Table 2026-GS](https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/2026/general-schedule/). For locality pay adjustments (which can add 15%–35%+ depending on your metro area), see the full locality tables at OPM.* ### How to Read This Table: 3 Examples **Example 1: Finding your base pay (GS-7, Step 1 — entry-level analyst)** If you’re starting as a GS-7 federal employee, find row “7” and column “Step 1.” Your 2026 base pay is $43,106/year. That’s before locality pay, which is added based on where you work. In Washington D.C., the locality rate is 33.26%, adding $14,335 — bringing your total adjusted pay to approximately $57,441. You’ll automatically move to Step 2 ($44,543) after one year of satisfactory performance. **Example 2: Calculating total pay with locality (GS-12, Step 5 — mid-career IT specialist)** A GS-12 at Step 5 has a 2026 base of $86,659. In San Francisco (locality rate ~44.15%), that adds $38,260 in locality pay, for a total of approximately $124,919. In a lower-cost region like the Rest of U.S. locality area (16.82%), the same GS-12 Step 5 employee earns $86,659 + $14,575 = $101,234. Same grade, same step — but nearly $24,000 difference based on location. **Example 3: What the 1% raise actually meant in dollars (GS-11, Step 1)** The 2025 GS-11 Step 1 base was $63,163. With the 2026 1% raise, it moved to $63,795 — a difference of **$632/year**, or about **$53/month** before taxes. If that employee is in D.C. (33.26% locality), the locality adjustment also ticked up slightly (since it’s a percentage of base), adding another $210/year. Total real-dollar gain from the 1% raise: roughly $842/year — less than a month’s rent in most D.C. neighborhoods. ## Locality Pay: Duty Station, Not Home Address One thing that trips people up, especially with telework now common: locality pay follows your **official duty station** as recorded on your SF-50 — not your home address. If you work out of a D.C. office but live in a lower-cost area an hour away, your locality pay is still the D.C. rate; the commute is on you. It works differently if you’re approved for full remote work (not just occasional telework). In that case, [OPM guidance](https://www.opm.gov/frequently-asked-questions/future-of-work-faq/general/) makes your approved remote worksite — typically your residence of record — the official duty station for locality pay purposes. The dividing line OPM uses: if you’re scheduled to report to an agency office at least twice each biweekly pay period, your duty station is that office; if not, it’s your approved remote location. Living near a locality-area border can mean a meaningful pay difference depending on which side of that line your official duty station falls on. --- ## 2025 GS Pay Raise: 1.7% With lower inflation coming into 2025, GS pay scales saw a more modest **1.7% across-the-board base pay increase**, confirmed via the White House’s pay adjustments directive. An average **0.3% locality pay** boost was added, bringing the total average increase to approximately **2.0%** from January 1st, 2025. The complete 2025 GS salary tables are available at the [Office of Personnel Management](https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/2025/general-schedule/). --- ## 2024 GS Pay Raise: 4.7% (Record Raise) With persistent inflation and a large [Social Security COLA](https://savingtoinvest.com/social-security-tax-and-cost-of-living-adjustment-cola/), 2024 GS pay scales saw an across-the-board **4.7% base pay increase** — a record raise justified on the basis of keeping pace with private-sector wage growth. An average **0.5% locality pay** boost brought the total average increase to **5.2%** from January 1st, 2024. The 2024 pay jump was the largest since 2023 and reflected a broader effort to close the persistent pay gap between federal and private-sector employees. --- ## 2023 GS Pay Raise: 4.6% Average With record-high inflation and an 8.7% Social Security COLA, President Biden confirmed a **4.6% average pay raise** for GS employees via executive order, made up of a **4.1% base pay** increase and an average **0.5% locality pay** adjustment. Effective January 1st, 2023. --- ## 2022 GS Base Pay Raise: 2.7% Average Federal employees on the GS pay scale received a **2.2% across-the-board base pay raise** for 2022, with an additional **0.5% locality pay adjustment**, totaling a **2.7% average increase** effective January 1st, 2022. --- ## 2021 GS Pay Raise: 1% Despite potential freeze fears, Congress approved a **1% raise** for GS employees effective January 1st, 2021 — the same level as the 2016–2018 period. Armed service members received a 3% raise in 2021. The 1% fell short in a rising inflation environment. --- ## 2020 GS Pay Raise: 3.1% GS employees saw a **3.1% average raise** for 2020, made up of a **2.6% general schedule increase** and **0.5% locality pay adjustment**. Effective January 1st, 2020 — matching the 2020 military pay raise. --- ## Prior Year GS Pay Raise History YearBase RaiseLocality AvgTotal Average20270.0% (confirmed freeze)0.0%0.0%20261.0%0.0%1.0%20251.7%0.3%2.0%20244.7%0.5%5.2%20234.1%0.5%4.6%20222.2%0.5%2.7%20211.0%0.0%1.0%20202.6%0.5%3.1%20191.4%0.5%1.9%20181.4%0.5%1.9%20171.0%1.1%2.1%20161.0%0.3%1.3%20151.0%0.0%1.0%20141.0%0.0%1.0%2013–20110.0%0.0%0.0% (Freeze) Full historical pay tables by grade and step are available at the OPM salaries and wages page. Frequently Asked Questions QWhat is the 2027 federal employee GS pay raise? AConfirmed at 0% for most civilian federal employees. President Trump's August 26, 2026 letter to Congress set the 2027 pay adjustment at zero, holding base and locality pay at 2026 rates. Federal law enforcement personnel are carved out for a 3.8% raise via OPM's special rate authority - the same treatment they received in 2026. The Democratic-sponsored FAIR Act (H.R. 7480), which proposed a 4.1% raise, never advanced past committee. QIs the 2027 pay freeze final, or could Congress still change it? ACongress can technically override the freeze through appropriations legislation, but as of the president's August 26 letter, no such effort was underway - House spending bills are silent on a raise, effectively endorsing the freeze, and the Senate had not yet released its own spending package. A presidential executive order, typically issued in December, will formally lock in the 2027 pay tables. QWhat is the FAIR Act and will it pass? AThe FAIR Act (H.R. 7480), introduced by Rep. James Walkinshaw (D-VA) and Sen. Brian Schatz (D-HI), proposed a 4.1% pay raise for federal employees in 2027. Despite picking up co-sponsors through 2026, it never received a hearing or markup and was effectively settled by Trump's August 26 pay-freeze letter. It has been reintroduced annually since 2014 and has never passed as standalone legislation. QWhen will the 2027 GS pay raise be finalized? AThe freeze is confirmed as of August 26, 2026. The last formal step is a presidential executive order, typically issued in December, that locks in the pay tables effective the first pay period of January 2027. QWhat is the 2026 GS pay raise? AThe 2026 GS pay raise was confirmed at 1% across-the-board base pay, effective January 2026. Locality pay was unchanged from 2025 levels. Federal law enforcement officers (ICE, DEA, etc.) received an additional 3.8%, matching the military's 2026 raise. QHow does the military pay raise compare to federal civilian pay for 2027? AThe same August 26, 2026 letter that froze civilian pay also set the military raise at 7% for E-5 and below, 6% for E-6 through O-3, and 5% for O-4 and above - creating one of the largest gaps between military and civilian federal pay in modern history. QWhere can I find the locality pay table for my area? AThe Office of Personnel Management (OPM) publishes locality pay tables for 50+ areas. Your total pay is your GS base pay plus your locality pay percentage. Find your locality table at opm.gov/policy-data-oversight/pay-leave/salaries-wages/2026/general-schedule/ and look for your city or metro area. QIs locality pay based on where I live or where my office is? AYour official duty station, as recorded on your SF-50 - not your home address. If you work out of an office, that office's location determines your locality pay, regardless of how far you commute from. The exception is full remote work: if you're approved for a remote arrangement (not reporting to an office at least twice per pay period), your approved remote worksite - typically your home - becomes your official duty station, and locality pay follows that location instead, per OPM's Future of Work guidance. **Categories:** Government Rebates and Payments **Tags:** congress, federal, government, GS, locality, pay raise, pay scale, table --- ### [SALT Deduction Cap 2026: $40,400 Limit, Who Benefits, and What Changes in 2030](https://savingtoinvest.com/new-4x-salt-cap-how-much-will-you-actually-save/) **Published:** February 16, 2026 **Author:** Andy **Content:** ### Key Takeaways - The SALT deduction cap is $40,400 for 2026 (up from $40,000 in 2025), and it rises another 1% a year through 2029 before reverting to a flat $10,000 in 2030. - The higher cap phases out once your MAGI passes $505,000 in 2026 - it shrinks by 30 cents for every dollar above that, bottoming out at the original $10,000 floor around $606,300. - You only benefit if you itemize on Schedule A instead of taking the standard deduction ($32,200 married filing jointly / $16,100 single for 2026). - Business owners can often layer a state Pass-Through Entity Tax (PTET) election on top of their personal SALT cap, since PTET payments aren't subject to the same $40,400 limit. - Seniors 65+ get a separate $6,000 deduction for 2025 through 2028 that stacks with SALT regardless of whether you itemize or take the standard deduction. - This is a temporary window, not a permanent fix - 2029 is the last full year at the higher cap before it snaps back to $10,000 in 2030. - A separate, permanent OBBB rule (Section 68) caps the tax value of itemized deductions - including SALT - at 35 cents per dollar for filers in the 37% bracket ($640,600+ single, $768,700+ joint for 2026), though it rarely reduces SALT itself since the MAGI phase-out usually already caps it at $10,000 by that income level. The SALT (State and Local Tax) deduction cap is $40,400 for 2026, up from $40,000 in 2025 — a four-fold jump from the $10,000 limit that had been in place since the 2017 Tax Cuts and Jobs Act (TCJA). It’s one of the more consequential pieces of [Trump’s One Big Beautiful Bill (OBBB)](https://savingtoinvest.com/reconciling-trumps-big-beautiful-bill-bbb/), and it’s temporary: the higher cap runs through 2029, then reverts to $10,000 in 2030. Here’s a case that shows why the number on the calendar matters. A married couple in New Jersey paying $15,000 in property taxes and $12,000 in state income tax could only deduct $10,000 of that $27,000 under the old rule — effectively paying federal tax on money already sent to the state. Under the 2026 cap, they can deduct the full $27,000, since it’s under the $40,400 limit. Covered in this Article: [Toggle](#) - [What the 2026 SALT Cap Actually Covers](#What_the_2026_SALT_Cap_Actually_Covers) - [The MAGI Phase-Out: Does It Apply to You?](#The_MAGI_Phase-Out_Does_It_Apply_to_You) - [Itemizing vs. the Standard Deduction](#Itemizing_vs_the_Standard_Deduction) - [Who Actually Benefits Most](#Who_Actually_Benefits_Most) - [Strategic Moves to Maximize Your 2026 Deduction](#Strategic_Moves_to_Maximize_Your_2026_Deduction) - [How the SALT Cap Interacts With the New Senior Deduction](#How_the_SALT_Cap_Interacts_With_the_New_Senior_Deduction) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Business Owners: Pass-Through Entity Workarounds Still Matter](#Business_Owners_Pass-Through_Entity_Workarounds_Still_Matter) - [2026 SALT Cap: Savings Comparison Table](#2026_SALT_Cap_Savings_Comparison_Table) - [Should You Adjust Your Withholding?](#Should_You_Adjust_Your_Withholding) - [Looking Ahead: The 2030 Snapback](#Looking_Ahead_The_2030_Snapback) ## What the 2026 SALT Cap Actually Covers The SALT deduction lets you subtract state and local taxes from your federal taxable income if you itemize. It covers property taxes plus either state income taxes or state/local sales taxes — not both. For 2026, the combined cap is **$40,400** for single filers, married couples filing jointly, and heads of household. Married couples filing separately are capped at **$20,200** each. These figures are part of a five-year phase-in written directly into [the OBBB’s text](https://www.congress.gov/119/bills/hr1/BILLS-119hr1enr.pdf): the cap rose from $10,000 to $40,000 in 2025, then to $40,400 in 2026, and increases another 1% annually through 2029 before the whole provision expires. ## The MAGI Phase-Out: Does It Apply to You? The higher cap doesn’t apply equally to everyone. Once your Modified Adjusted Gross Income (MAGI) exceeds **$505,000** in 2026, the $40,400 cap starts shrinking — by 30 cents for every dollar you earn above that threshold. The deduction keeps dropping until it hits the original $10,000 floor, which happens once MAGI reaches roughly **$606,300**. Even the highest earners never lose the deduction entirely; it just reverts to the pre-OBBB $10,000 limit — the [Bipartisan Policy Center’s breakdown](https://bipartisanpolicy.org/explainer/salt-deduction-changes-in-the-one-big-beautiful-bill-act/) of this phase-down mechanism is a good resource if you want to see the math applied to more income levels. **Example:** Priya and Dev file jointly with a MAGI of $540,000 — $35,000 over the $505,000 threshold. Their cap is reduced by 30% of that excess ($10,500), bringing their allowable SALT deduction down to $29,900 instead of the full $40,400. ## Itemizing vs. the Standard Deduction The higher SALT cap only helps if your total itemized deductions on Schedule A beat the standard deduction. For 2026, the standard deduction is **$32,200** for married couples filing jointly and **$16,100** for single filers. Besides SALT, itemizing also lets you count mortgage interest (on up to $750,000 of debt), charitable gifts, and unreimbursed medical expenses over 7.5% of your AGI. If you’re weighing a [mortgage refinance](https://savingtoinvest.com/should-i-refinance-my-mortgage-and-do-i-qualify/), the interest you’d pay factors directly into this math. **Example:** The Martins, a married couple, pay $12,000 in property taxes and $10,000 in state income tax ($22,000 SALT total) plus $12,000 in mortgage interest. Their itemized total of $34,000 beats the $32,200 standard deduction — so itemizing wins, where it wouldn’t have under the old $10,000 SALT cap. ## Who Actually Benefits Most Homeowners in high-property-tax or high-income-tax states see the biggest impact — think New York, New Jersey, California, and Connecticut. For many middle-class families in those states, this can mean $3,000 to $7,000 in federal tax savings that simply didn’t exist under the old $10,000 cap. Residents of no-income-tax states with high property taxes (Texas, for instance) can also benefit meaningfully. I break down how state tax burdens compare more broadly in my [California vs. Florida tax refund comparison](https://savingtoinvest.com/california-vs-florida-where-your-tax-refund-goes-further-in-2026/), which is useful context if you’re weighing a move. Retirees without a mortgage tend to benefit less, since they’ve lost the mortgage-interest piece that used to help push them over the standard-deduction threshold. ## Strategic Moves to Maximize Your 2026 Deduction If you’re close to the itemization threshold, “bunching” deductions into a single tax year is worth considering. That means timing payments — prepaying next year’s property tax bill in December, for instance, or front-loading a few years of charitable giving through a donor-advised fund — so you clear the standard-deduction bar in one year and take the standard deduction in the next. I cover a few more year-end moves like this in my [year-end tax deductions guide](https://savingtoinvest.com/15-year-end-tax-deductions-to-remember-unless-you-want-to-give-the-irs-a-tax-free-loan/). One more thing worth knowing: you can only deduct state and local **income** tax or **sales** tax, not both — most people in states with an income tax come out ahead deducting that instead of sales tax. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) — I’ll update this page as the phase-out thresholds and cap amounts change each year through 2029.* ## How the SALT Cap Interacts With the New Senior Deduction If you’re 65 or older, there’s a separate **$6,000** deduction available for tax years 2025 through 2028, on top of whatever you claim for SALT. It’s available whether you itemize or take the standard deduction, though it phases out starting at $75,000 income for singles and $150,000 for couples. For a couple over 65 who also itemizes to take advantage of the $40,400 SALT cap, that’s potentially $45,000-plus in combined deductions before even counting mortgage interest. I hear from readers on fixed incomes in high-property-tax areas fairly often, and this stacking is genuinely one of the more useful — and more overlooked — parts of the new law for that group. ## Common Issues to Watch Out For I get a handful of the same questions and mix-ups on this topic every year, so here’s what trips people up most: **Thinking the $40,400 is a credit.** It’s a deduction, not a dollar-for-dollar credit. If you’re in the 24% bracket, a $10,000 increase in your deduction saves you roughly $2,400 in actual tax — meaningful, but not a 1:1 reduction in your bill. **Assuming the cap applies per tax type.** The $40,400 is a combined total across property tax, state income tax, and local taxes — you can’t deduct $40,400 for property taxes and another $40,400 for income tax. **Not realizing SALT doesn’t carry over.** Unused SALT deduction capacity in one year doesn’t roll into the next — it’s a use-it-or-lose-it annual limit. **Missing the separate 37%-bracket deduction limit.** A permanent OBBB rule (Section 68), effective 2026, caps the tax value of all itemized deductions – SALT included – at 35 cents per dollar once your taxable income clears the 37% bracket threshold ($640,600 single/HOH, $768,700 married filing jointly for 2026). In practice it rarely touches SALT directly. By that income level, the MAGI phase-out above has usually already cut your SALT deduction down to the $10,000 floor, so Section 68 mainly trims the value of whatever mortgage-interest and charitable deductions you’re still claiming on top of it. **Overlooking the AMT interaction.** The Alternative Minimum Tax used to blunt a lot of SALT’s value for high earners. Under current law, most TCJA-era AMT relief stays in place, so the AMT shouldn’t meaningfully interfere with your SALT deduction through 2029 for most filers — though it’s still worth running the numbers if you’re close to AMT territory. ## Business Owners: Pass-Through Entity Workarounds Still Matter If you own an S-Corp or partnership, the state Pass-Through Entity Tax (PTET) workaround that many states created after 2018 is still valuable even with the higher personal cap. PTET lets the business itself deduct state taxes at the entity level, with no cap at all. That means an owner can deduct 100% of business-related state taxes through PTET and still have the full $40,400 personal SALT cap available separately for property taxes. PTET deductions also generally aren’t subject to the MAGI phase-out that applies to the personal cap. If your business generates significant income, it’s worth talking to a tax professional about whether a PTET election makes sense for your state. ## 2026 SALT Cap: Savings Comparison Table Here’s how the math plays out for a married couple filing jointly with $250,000 in household income (24% federal bracket), $35,000 in total SALT paid, and $5,000 in other itemized deductions (mortgage interest, charitable gifts): ScenarioOld Rule ($10K Cap)New Rule ($40.4K Cap)Allowable SALT deduction$10,000$35,000Other itemized deductions$5,000$5,000Total itemized deductions$15,000$40,0002026 standard deduction$32,200$32,200Best strategyTake standard ($32,200)Itemize ($40,000)Extra taxable income reduction—$7,800Extra federal tax savings (24% bracket)—~$1,872 Under the old cap, this family’s itemized total ($15,000) didn’t beat the standard deduction, so they’d take the standard deduction. Under the 2026 cap, itemizing wins by $7,800 — worth roughly $1,872 in actual tax savings at a 24% marginal rate. ## Should You Adjust Your Withholding? If you expect to save $2,000 or more from the higher SALT cap, you may be over-withholding through your paycheck and effectively giving the government an interest-free loan until you file. It’s worth reviewing your **Form W-4** with your employer to adjust withholding so that money shows up in your regular paycheck instead of a refund the following year. Before you do, check your latest property tax assessment, estimate your state income tax from recent paystubs, and run the numbers through your preparer or [tax software](https://savingtoinvest.com/the-best-tax-software-and-free-filing-options-as-tax-filing-goes-primarily-online/) to see whether you’ll clear the $32,200 (joint) or $16,100 (single) itemizing threshold for 2026. ## Looking Ahead: The 2030 Snapback The $40,400 cap is not permanent. Under current law, the expanded rules expire after the 2029 tax year, and the limit reverts to $10,000 in 2030 with no MAGI phase-out — the same flat cap that applied from 2018 through 2024. That gives high-tax-state homeowners a four-year window (2026 through 2029) to plan around. If you’re weighing a major home renovation that would raise your property tax bill, or timing a large charitable gift, doing it while the higher cap is in effect makes the deduction worth more. I expect plenty of political debate over extending or adjusting this provision as 2030 approaches — [the tax brackets and broader OBBB provisions](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/) are worth watching alongside it, since Congress tends to revisit several expiring pieces together. I’ll update this page as anything changes. Frequently Asked Questions QWhat is the SALT deduction cap for 2026? A$40,400 for single filers, married couples filing jointly, and heads of household. Married couples filing separately are capped at $20,200 each. QWho qualifies for the full $40,400 SALT deduction? AAnyone who itemizes on Schedule A and has a Modified Adjusted Gross Income (MAGI) under $505,000 in 2026. Above that, the deduction phases down by 30 cents per dollar of MAGI over the threshold. QAt what income does the SALT deduction phase out completely? AThe deduction phases down to the original $10,000 floor once MAGI reaches roughly $606,300 in 2026. It never disappears entirely - it just reverts to the pre-2025 limit. QDo I need to itemize to claim the SALT deduction? AYes. You can only claim SALT if your total itemized deductions on Schedule A exceed the standard deduction ($32,200 married filing jointly / $16,100 single for 2026). QIs the $40,400 SALT cap permanent? ANo. It's in effect through 2029, rising 1% each year. In 2030, the cap reverts to a flat $10,000 with no income phase-out, matching the original TCJA rule. QCan I deduct both state income tax and sales tax under the SALT cap? ANo. You can deduct state and local income tax or sales tax, not both - plus property taxes. Most filers in states with an income tax come out ahead choosing that option over sales tax. QDoes the SALT cap affect business owners differently? AMany business owners can use a state Pass-Through Entity Tax (PTET) election to deduct state taxes at the entity level, separate from and in addition to the $40,400 personal SALT cap, and generally without the MAGI phase-out. QDoes the 37% tax bracket reduce my SALT deduction further? AThere's a separate, permanent rule (Section 68) that caps the tax value of all itemized deductions at 35 cents per dollar once your taxable income clears the 37% bracket threshold ($640,600 single/HOH, $768,700 married filing jointly for 2026). In practice it rarely reduces SALT specifically, since the MAGI phase-out has usually already cut your SALT deduction to the $10,000 floor by that income level. **Categories:** Taxes and Retirement **Tags:** Itemized Deductions, OBBBA, SALT deduction, state and local tax, tax cap --- ### [401(k) to IRA Rollovers — Direct vs. 60-Day Rules (and Avoiding the 20% Withholding Trap)](https://savingtoinvest.com/rollover-old-or-multiple-401ks-into-an-ira/) **Published:** November 15, 2010 **Author:** Andy **Content:** ### Key Takeaways - A direct rollover (trustee-to-trustee) avoids the 20% mandatory withholding and the 60-day deadline entirely - it's the option that avoids the most common rollover mistakes. - An indirect rollover means the check comes to you first, your old 401(k) plan is required to withhold 20% for taxes, and you have 60 days to deposit the full original amount into an IRA - including making up the withheld 20% out of pocket. - The one-rollover-per-12-months rule applies to IRA-to-IRA rollovers, aggregated across all your IRAs. It does not apply to 401(k)-to-IRA rollovers or to direct trustee-to-trustee transfers. - Rolling a traditional 401(k) into a Roth IRA is a taxable conversion, not a tax-free rollover - you'll owe income tax on the converted amount. - Rolling an old 401(k) into a Traditional IRA can permanently complicate a backdoor Roth IRA strategy - the IRS's pro-rata rule taxes future conversions across your entire Traditional IRA balance, not just new contributions. - If your old 401(k) balance is under $7,000, your former employer can force it into a default IRA (or cash it out if under $1,000) if you don't act - a SECURE 2.0 change from the old $5,000 threshold. The safest way to move money from an old 401(k) to an IRA is a direct, trustee-to-trustee transfer — the funds never touch your hands, so none of the deadlines or withholding rules below even come into play. Do it the other way, where the check gets sent to you first, and two things immediately complicate the process: your old plan withholds 20% for taxes, and you have exactly 60 days to get the full amount into an IRA or it counts as a taxable distribution. Covered in this Article: [Toggle](#) - [Direct Rollover: The Simple Path](#Direct_Rollover_The_Simple_Path) - [Indirect (60-Day) Rollover: Where People Get Tripped Up](#Indirect_60-Day_Rollover_Where_People_Get_Tripped_Up) - [The One-Rollover-Per-Year Rule](#The_One-Rollover-Per-Year_Rule) - [Rolling Into a Roth IRA Is a Different Transaction](#Rolling_Into_a_Roth_IRA_Is_a_Different_Transaction) - [What Happens If You Do Nothing](#What_Happens_If_You_Do_Nothing) - [Why Roll Over at All (and When Not To)](#Why_Roll_Over_at_All_and_When_Not_To) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027](#Looking_Ahead_2027) ## Direct Rollover: The Simple Path In a **direct rollover**, your old 401(k) provider sends the money straight to your new IRA custodian — either electronically or via a check made out to the new custodian “for the benefit of” you, not to you personally. Because you never receive the funds, there’s **no 20% withholding and no 60-day clock**. This is the method almost every financial advisor recommends, and it’s usually as simple as calling your new IRA custodian and asking them to initiate the transfer on your behalf. **Tom**, 48, leaves his job and asks his new IRA custodian to request a direct transfer of his $180,000 401(k) balance. The full $180,000 moves to his IRA with zero withholding and no deadline pressure. He never sees a check. ## Indirect (60-Day) Rollover: Where People Get Tripped Up In an **indirect rollover**, your old 401(k) sends a check directly to you. By law, the plan must withhold 20% for federal taxes before cutting that check — even if you intend to roll over the entire balance. You then have **60 days from the day you receive the funds** to deposit the full original amount — including the 20% that was withheld — into an IRA or another employer plan. If you don’t make up that withheld 20% from other funds, it’s treated as a taxable distribution (and possibly hit with the 10% early withdrawal penalty if you’re under 59½). **Diane**, 52, requests a distribution and receives a check for $80,000 — her plan withheld $20,000 (20% of her $100,000 balance) and sent her the remaining $80,000. To roll over the full $100,000 within 60 days, she has to come up with the extra $20,000 from her own savings and deposit the complete $100,000 into her IRA. She’ll get the withheld $20,000 back as a tax credit when she files her return — but only after fronting it herself in the meantime. The 60-day clock starts the day after you receive the funds — not the day the check was mailed, not the date on the paperwork. If a bank holiday or mail delay eats into your window, the IRS generally does not extend it except in specific hardship situations (natural disasters, hospitalization, and similar circumstances qualify for a self-certified waiver). ## The One-Rollover-Per-Year Rule This rule confuses almost everyone, because it doesn’t apply the way most people assume. **You can only do one IRA-to-IRA 60-day rollover in any 12-month period**, and this limit is aggregated across every IRA you own — not counted per account. Try a second one within 12 months and the whole distribution becomes taxable, plus the 10% penalty if you’re under 59½. Here’s the part that trips people up: **this rule does not apply to 401(k)-to-IRA rollovers, and it doesn’t apply to direct trustee-to-trustee transfers at all**, regardless of how many you do or how often. If you’re moving money out of an old 401(k), the once-a-year limit simply isn’t a factor. ## Rolling Into a Roth IRA Is a Different Transaction Moving a traditional (pre-tax) 401(k) into a Roth IRA isn’t a rollover in the tax-free sense — it’s a **Roth conversion**, and the entire converted amount is added to your taxable income for the year. This can still be a smart move, particularly in a lower-income year or if you expect tax rates to rise, but budget for the tax bill. Converting a $150,000 traditional 401(k) balance in one year, for example, could push a chunk of that income into a higher bracket than you’d hit by spreading conversions across several years instead. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) and I’ll flag it if the IRS changes any of these transfer or withholding rules.* ## What Happens If You Do Nothing Leaving an old 401(k) where it is isn’t always your choice for long. Under SECURE 2.0, if your vested balance is **$1,000 or less**, your former employer can cash it out and send it to you directly. If it’s between **$1,000 and $7,000** (raised from the old $5,000 threshold, at each plan’s discretion), the employer can automatically roll it into a default “safe harbor” IRA in your name if you don’t respond to their notice. That default IRA is usually parked in a low-yield, conservative fund — fine as a holding spot, but not where you want retirement money sitting for years. If you get a notice about an old plan you’d forgotten about, it’s worth actively directing where that money goes rather than letting the default happen. ## Why Roll Over at All (and When Not To) The case for consolidating into an IRA: one account instead of several, generally a wider range of investment choices than a 401(k) offers, and — as covered in our [RMD guide](https://savingtoinvest.com/required-minimum-distributions-rmd-rules-and-deadlines/) — one RMD calculation instead of a separate one for every old 401(k) you still hold. The case for leaving it in the 401(k), at least for now: 401(k) plans generally have stronger creditor protection under federal law (ERISA) than IRAs do in some states, some offer institutional-class funds with lower fees than retail IRA options, and — critically — **the “rule of 55” penalty exception only applies to a 401(k), never an IRA**. If you’re 55 or older and might need penalty-free access to that specific employer’s plan, rolling it into an IRA before you need the money permanently forfeits that option. See our [early withdrawal penalty guide](https://savingtoinvest.com/how-to-withdraw-money-early-from-your-401k-or-ira-without-paying-a-penalty/) for the full rule-of-55 breakdown. ## Common Issues to Watch Out For **Blocking your own backdoor Roth IRA without realizing it.** If you (or your spouse) use the [backdoor Roth IRA strategy](https://savingtoinvest.com/traditional-ira-versus-roth-ira-contribution-and-phase-out-income-limits/) — contributing to a Traditional IRA, then immediately converting it to Roth to work around the income limits — rolling an old 401(k) into a Traditional IRA adds pre-tax money to that same pool. The IRS’s pro-rata rule then taxes every future conversion proportionally across *all* your Traditional IRA balances combined, not just the new contribution, which can turn a clean backdoor Roth into a partially taxable mess that’s genuinely difficult to unwind. If you rely on the backdoor Roth strategy, ask whether your *new* employer’s 401(k) accepts a “reverse rollover” of the old balance instead — most plans that accept rollovers in also accept them from an existing Traditional IRA, and moving the money there instead keeps your Traditional IRA balance at zero. **Assuming the check has to come to you.** It doesn’t — always ask for a direct, trustee-to-trustee transfer unless you have a specific reason not to. It’s simpler and avoids withholding entirely. **Not making up the withheld 20% on an indirect rollover.** If you only redeposit the amount you actually received (rather than the full pre-withholding balance), the shortfall is treated as a taxable distribution. **Triggering the once-a-year limit without realizing it.** If you’re doing an IRA-to-IRA 60-day rollover and you already did one in the past 12 months — from any of your IRAs — the second one is fully taxable. **Rolling a 55+ 401(k) into an IRA before checking the rule of 55.** Once it’s in an IRA, that specific penalty exception is gone permanently. **Ignoring a small-balance notice from an old employer.** If you don’t respond, your money may end up in a low-yield default IRA you didn’t choose. ## Looking Ahead: 2027 Plan sponsors have until **December 31, 2026** to formally amend their plan documents for several SECURE 2.0 provisions, including the higher $7,000 automatic cash-out threshold — most have already operated as if it were in effect since 2024, but the paperwork catches up this year. Expect more plans to formally adopt the higher threshold as that deadline approaches, which should mean fewer surprise forced rollovers for people with smaller old-401(k) balances going forward. For related reading, see [Cashing Out My 401(k) — Loans vs. Hardship Withdrawals](https://savingtoinvest.com/401k-cash-out-for-loans-vs-hardship/) and [2026-2027 401(k), IRA, and Roth IRA Contribution and Income Limits](https://savingtoinvest.com/401k-ira-and-roth-ira-contribution-and-income-limits/). Frequently Asked Questions QWhat's the difference between a direct and indirect 401(k) rollover? AIn a direct rollover, funds move straight from your old plan to your new IRA without passing through your hands, avoiding withholding and deadlines. In an indirect rollover, you receive the check yourself, your plan withholds 20% for taxes, and you have 60 days to deposit the full original amount into an IRA. QHow much does a 401(k) withhold on an indirect rollover? A20% for federal taxes, by law, even if you plan to roll over the entire distribution. You must use other funds to make up that withheld amount if you want to roll over 100% of your original balance within 60 days. QHow many IRA rollovers can I do per year? AOne IRA-to-IRA 60-day rollover per 12-month period, aggregated across all your IRAs. This limit does not apply to 401(k)-to-IRA rollovers or to direct trustee-to-trustee transfers. QIs converting a 401(k) to a Roth IRA the same as a rollover? ANo. Moving pre-tax 401(k) money into a Roth IRA is a taxable conversion - the full converted amount is added to your taxable income for that year, unlike a standard tax-free rollover. QWill rolling my 401(k) into a Traditional IRA affect my backdoor Roth IRA? AYes, potentially. If you do backdoor Roth conversions, adding pre-tax money to a Traditional IRA triggers the pro-rata rule, which taxes every conversion proportionally across all your Traditional IRA balances, not just new contributions. If you rely on the backdoor Roth strategy, ask whether your new employer's 401(k) accepts a reverse rollover instead, so your Traditional IRA balance stays at zero. QWhat happens to my old 401(k) if I don't do anything with it? AIf your vested balance is $1,000 or less, your former employer can cash it out directly. If it's between $1,000 and $7,000, they may automatically roll it into a default IRA in your name if you don't respond to their notice. QCan I roll over my 401(k) if I'm still working for the same employer? AGenerally no - most plans only allow rollovers after you separate from service, though some plans permit 'in-service' rollovers once you reach a certain age, typically 59½. Check your specific plan's rules. **Categories:** Taxes and Retirement **Tags:** 401K, IRA, IRS, retirement, rollover, saving, taxes, withholding --- ### [Where's My Amended Tax Return? Checking Your 1040-X Status and Refund Timeline for 2026-2027](https://savingtoinvest.com/wheres-my-amended-tax-return-and-when-will-i-get-my-refund/) **Published:** April 25, 2022 **Author:** Andy **Content:** ### Key Takeaways - The standard WMR/IRS2Go tools don't track amended returns - use the separate WMAR tool instead, which updates once daily. - Official IRS guidance is 8 to 16 weeks to process a Form 1040-X, but the National Taxpayer Advocate found the actual FY2025 average was over 5 months. - WMAR has three statuses - Received, Adjusted, Completed - and a 'Completed' status doesn't guarantee a refund is coming. - You can e-file up to three accepted amended returns per year; additional ones will be rejected with no WMAR status shown. - Transcript codes 971/977 mean your amended return is in process; code 960 means an agent has been assigned; code 846 means your refund has been issued. - Only call the IRS about a delayed amended refund after 12 weeks; expect long hold times given current staffing levels. - If WMAR shows 'Completed' but your refund check never arrives, it's usually an outdated mailing address - file Form 8822 and contact the IRS directly, since undeliverable checks aren't automatically reissued. - If your amendment flips you from owing to getting a refund, the correction replaces your old balance rather than adding a separate refund on top of it - but your IRS Online Account balance can lag the amendment's real status by several weeks, so check your transcript if the numbers don't seem to match. While the IRS aims to process regular season tax returns and refunds within 21 days for the vast majority of filers, [amended returns](https://savingtoinvest.com/amended-tax-return-refund-schedule-rules-form-1040x-and-deadlines/) take quite a bit longer. The IRS’s own current guidance is to allow **8 to 16 weeks** for a Form 1040-X to process. In practice, it’s often longer: the National Taxpayer Advocate’s 2026 reporting found the IRS took an average of **more than 5 months** to process the 3.7 million amended returns it handled in FY2025, and as of early May 2026 the IRS was still working through amended returns filed back in February. So it’s not surprising many taxpayers wait months for their amended return to clear, given ongoing IRS backlogs, identity verification checks, and staffing constraints. Here are some tips that can get you a more real-time read on your amended return status and help make the wait less frustrating. Covered in this Article: [Toggle](#) - [How Can I Check My Amended Return Status (WMAR)?](#How_Can_I_Check_My_Amended_Return_Status_WMAR) - [When Does the WMAR Tool Update?](#When_Does_the_WMAR_Tool_Update) - [Calling the IRS About Your Amended Return](#Calling_the_IRS_About_Your_Amended_Return) - [Using Your IRS Transcript for Amended Return Status](#Using_Your_IRS_Transcript_for_Amended_Return_Status) - [Processing Complete, But No Refund Payment?](#Processing_Complete_But_No_Refund_Payment) - [How Long Will It Actually Take?](#How_Long_Will_It_Actually_Take) - [IRS Amended Return Processing Schedule](#IRS_Amended_Return_Processing_Schedule) - [Looking Ahead: 2027-2028](#Looking_Ahead_2027-2028) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## How Can I Check My Amended Return Status (WMAR)? The standard [WMR or IRS2Go](https://savingtoinvest.com/wmr-and-irs2go-status-differences-return-received-accepted-or-under-review-and-refund-approved-versus-refund-sent/) refund tools do **not** show your amended return status. You need the IRS’s dedicated [Where’s My Amended Return (WMAR)](https://www.irs.gov/filing/wheres-my-amended-return) tool instead. It tracks Form 1040-X for the current year and up to three prior years. ![Amended Return Status stages in the IRS WMAR tool](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2022/11/image-18.png?resize=690%2C507&ssl=1)Amended Return Status stages in the WMAR toolThere are 3 statuses in WMAR: **Received**, **Adjusted**, and **Completed**. *Received* confirms the IRS has your amended return loaded into its systems for processing — it doesn’t mean processing has actually started, since amended returns often require manual review and assignment to an examiner. *Adjusted* means the IRS has completed its review and adjusted your return based on the amended information, which can result in an additional refund, a balance owed, or no change at all. You’ll get an IRS notice explaining the action taken. *Completed* means the IRS has finished processing and sent any applicable notices or refunds. Importantly, as the next section covers, a completed status doesn’t automatically mean a refund is coming — additional taxpayer action could still be required. ## When Does the WMAR Tool Update? WMAR updates once a day, usually overnight, so checking multiple times a day won’t get you anything new. It typically starts showing information about 3 weeks after you submit your amended return, though this can vary. You’ll need your SSN, date of birth, and ZIP code to use it. ![IRS Where's My Amended Return (WMAR) online tool](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2022/11/image-17.png?resize=820%2C534&ssl=1)The IRS Where’s My Amended Return (WMAR) toolOne limit worth knowing: you can only e-file up to **three “accepted” amended returns** per tax year. Any beyond that will get rejected and won’t show a status in WMAR. ## Calling the IRS About Your Amended Return ![Checking IRS Amended Tax Return Status](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2022/06/image-3.png?resize=561%2C227&ssl=1)If WMAR hasn’t updated in several weeks, you can call the IRS — but official guidance is to wait until **12 weeks** have passed before following up on a delayed amended return refund. The IRS’s dedicated amended-return line is **1-866-464-2050** (English and Spanish options available). Expect long waits — the IRS answered only about 21% of the roughly 48 million calls it received during the 2026 filing season, with average wait times around 14 minutes. ## Using Your IRS Transcript for Amended Return Status In addition to WMAR, your free [IRS tax transcript](https://savingtoinvest.com/getting-a-free-copy-of-your-irs-tax-return-information-form-4506t-irs-tax-transcript/) can offer more detail on your amended return and refund. ![Amended tax return processing codes on an IRS tax transcript](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2022/09/image.png?resize=459%2C262&ssl=1)Amended return processing codes (971/977) on a tax transcriptTranscript codes **971 and 977** show that your amended return was received and is being processed. Many filers see these codes for months before anything changes — it can take a while to move to the next stage. Watch for code **960 (appointed representative)**, which marks the date an IRS agent was assigned and began actively working your amended return — often a manual process. You may also see [code 971](https://savingtoinvest.com/what-is-tax-code-tc-570-on-my-irs-transcript-and-will-it-delay-my-refund-account-freeze-or-additional-account-actions-pending/) if a notice is issued, which may require you to provide additional information — instructions come with the [notice or letter](https://savingtoinvest.com/should-i-be-worried-if-i-get-an-irs-notice-or-letter-will-it-affect-my-tax-return-processing-or-refund-payment/). Once processing is complete, you’ll see [code 846](https://savingtoinvest.com/code-846-refund-issued-on-your-irs-tax-transcript-what-it-means-for-your-direct-deposit-or-paper-check-refund-payment/) (refund issued). Note the date — you should receive your payment within 2 to 5 days of it. If your refund was delayed past the standard 45-day window after the filing deadline, you’ll also see an interest amount credited; the IRS’s current overpayment interest rate for individuals is 7% for Q1 and Q3 2026 and 6% for Q2 2026, adjusted quarterly. This interest is taxable income and gets reported on a 1099-INT the following year. *[Subscribe here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) and I’ll flag it if IRS amended-return processing times change materially.* ## Processing Complete, But No Refund Payment? Even when WMAR shows Completed, some taxpayers don’t see the refund they expected. A completed status just means IRS processing has finished — the next step could be an additional tax assessment, a request for more information, or an adjusted (smaller or larger) refund rather than what you originally claimed. Pay close attention to any notes or messages below the WMAR status bar, which give more insight into next steps. Check your transcript for details, and call the number listed in your notice if one was provided. Ultimately, you’ll need to wait for the IRS’s official notice to see what action was taken or what’s required from you. ## How Long Will It Actually Take? Given the NTA’s FY2025 average of over 5 months for amended returns — and the agency still working through February filings as of May 2026 — budget for a long wait if your amended return needs any manual review or additional verification. There isn’t much you can do to speed this up, including calling the IRS or the Taxpayer Advocate Service, beyond confirming nothing further is needed from you. For general (non-amended) refund delays, [see my full breakdown here](https://savingtoinvest.com/why-is-it-taking-so-long-to-get-my-tax-refund/). ## IRS Amended Return Processing Schedule Unlike regular refunds, which the IRS aims to process within 3 weeks, amended returns are prioritized behind regular returns and currently run **8 to 16 weeks** by official guidance — longer in practice per the NTA’s most recent data. This has been compounded by IRS staffing cuts in recent years; the agency’s individual workforce was down roughly 27% heading into the 2026 filing season. Amended return refunds can be paid via direct deposit rather than only mailed check, a change introduced a few years back — this option is available directly on Form 1040-X and should speed up and secure payment versus a mailed check. ## Looking Ahead: 2027-2028 Watch for whether the IRS makes progress automating more of the 1040-X review process, a step the National Taxpayer Advocate has specifically recommended to cut down the backlog. I’ll update the processing-time figures here once the IRS or NTA publish new data for the 2027-2028 cycle. ## Common Issues to Watch Out For I hear from readers about the same handful of amended-return snags over and over. Here’s what’s usually going on and how to fix it. **WMAR shows “Completed” but the refund check never shows up.** This is almost always an address problem. The IRS mails your amended-return refund to whatever address is on that specific 1040-X – not necessarily your current address, and not automatically your bank account even if your original return used direct deposit. If you’ve moved, file Form 8822 to update your address with the IRS, and don’t assume a reissue happens automatically: undeliverable checks get returned to the IRS and generally only get reissued after you contact them directly. **The refund that arrived is smaller than expected.** Before assuming a math error, check whether the IRS applied some or all of it to an existing federal debt through the Treasury Offset Program – back taxes, defaulted student loans, or certain other government obligations. This usually comes with a separate notice explaining the adjustment, so check your mail (and your [IRS transcript](https://savingtoinvest.com/getting-a-free-copy-of-your-irs-tax-return-information-form-4506t-irs-tax-transcript/)) before calling to dispute what looks like a shortfall. **WMAR says “no information available” even weeks after filing.** Three common causes: a typo in the SSN/ZIP code combination you entered into the tool, a paper-filed amendment that simply hasn’t been logged yet (allow the full 3 weeks before WMAR shows anything), or amending a tax year outside WMAR’s tracking window – the tool only covers the current processing year plus the prior 3 years. **Filing a second 1040-X before the first one finishes.** If you catch another mistake while an amendment is still processing, resist the urge to immediately file again – a second amendment on top of an unprocessed first one can reset or badly complicate WMAR’s tracking. Let the first one reach “Completed” status first whenever your situation allows it. **Confusing the federal WMAR tool with your state’s amended-return tracker.** These are completely separate systems on independent timelines. If you also amended your state return, you’ll need to check your state’s own portal – the federal WMAR tool has no visibility into state processing at all. **Amending from owing money to getting a refund – does it cancel the debt, or do you get a separate check?** This is a real point of confusion: if your 1040-X flips you from owing the IRS to being owed a refund, the amendment corrects your account rather than sitting alongside the old balance as a second, unrelated number. Once it fully posts, the corrected figure – including any resulting refund – is your one true balance, not two separate amounts you need to reconcile yourself. The catch is timing: the balance shown in your IRS Online Account can lag behind your amendment’s WMAR status by several weeks, so it’s common to still see the old balance displayed even after WMAR shows “Adjusted” or “Completed.” If your online account balance still looks wrong, check your tax transcript for the more current figure before assuming something’s gone wrong. Frequently Asked Questions QHow do I check the status of my amended tax return? AUse the IRS's Where's My Amended Return (WMAR) tool, not the standard Where's My Refund tool. WMAR tracks Form 1040-X for the current year and up to three prior years, and updates once a day, usually overnight. QHow long does it take the IRS to process an amended return in 2026-2027? AThe IRS's official guidance is 8 to 16 weeks. In practice, the National Taxpayer Advocate found the actual FY2025 average was over 5 months, so plan for a longer wait, especially if your return needs manual review. QWhat does 'Completed' mean on WMAR if I haven't gotten my refund? AA Completed status means IRS processing has finished, not that a refund is guaranteed. The next step could be an adjusted refund, an additional tax bill, or a request for more information - check the notes below the status bar and your IRS notice for details. QWhat do transcript codes 971, 977, 960, and 846 mean for an amended return? ACodes 971 and 977 mean your amended return was received and is processing. Code 960 means an IRS agent has been assigned to review it. Code 846 means your refund has been issued, and you should receive payment within 2 to 5 days of that date. QWhen should I call the IRS about a delayed amended return? AOfficial guidance is to wait until 12 weeks have passed before calling about a delayed amended return refund. The dedicated line is 1-866-464-2050, though expect long wait times given current IRS staffing levels. QMy WMAR status says 'Completed' but I never got my refund check - what happened? AThis is almost always an outdated mailing address - the IRS mails your amended-return refund to the address on that specific 1040-X, and undeliverable checks are returned to the IRS rather than automatically reissued. File Form 8822 to update your address, then contact the IRS directly to request a reissue. QIf my amended return changes me from owing to getting a refund, does that cancel the debt shown on my IRS account? AYes - once the amendment fully posts, it corrects your account rather than sitting alongside the old balance as a separate figure, so the resulting refund reflects your one true balance. The confusion usually comes from timing: your IRS Online Account balance can lag behind your amendment's WMAR status by several weeks, so you may still see the old balance displayed even after WMAR shows 'Adjusted' or 'Completed.' Check your tax transcript for the most current figure if the online balance still looks wrong. **Categories:** Taxes and Retirement --- ### [21 Signs You're Losing Interest in Your Job (and What to Do About It)](https://savingtoinvest.com/21-signs-that-you-are-losing-interest/) **Published:** August 13, 2008 **Author:** Andy **Content:** ### Key Takeaways - Occasional disengagement is normal - the signal worth acting on is when several of these signs persist for weeks, not a single bad day - Classic signs include no longer feeling challenged, dreading Sunday evenings, coasting on minimum effort, and caring only about the paycheck - Checked-out behavior - scheduling personal errands during work hours, job-hunting on company time, treating remote days as time off - is a further stage past simple disinterest - The 'grass is greener' instinct is rarely accurate on its own, especially if this is the second or third job in a row triggering the same feelings - If you recognize 15 or more of these signs in yourself, it's a strong signal to start looking - either internally for a new role, or externally for a new company - Don't wait for things to improve on their own - in most cases, they don't without a deliberate change We’ve all hit that wall — a stretch where work feels more like a chore than anything close to engaging. Feeling uninterested for a few days is normal. It becomes worth paying attention to when it drags on for weeks and starts showing up in your actual behavior. Here are 21 signs your disinterest might be more than a temporary slump, and what the pattern usually means once you recognize it. Covered in this Article: [Toggle](#) - [21 Signs You’re Losing Interest](#21_Signs_Youre_Losing_Interest) - [When Disinterest Turns Into Checked-Out Behavior](#When_Disinterest_Turns_Into_Checked-Out_Behavior) - [What This Pattern Usually Means](#What_This_Pattern_Usually_Means) - [What to Do About It](#What_to_Do_About_It) ## 21 Signs You’re Losing Interest 1. **You no longer feel challenged or enthused by the work.** It’s boring or uninteresting, and your only goal is finishing it with minimal effort rather than doing it well. 2. **You can’t concentrate for more than an hour** without a caffeine break, endless phone-scrolling, or getting pulled into other people’s conversations. 3. **You feel like you’re always stuck with the worst assignments** while others get the interesting work — sometimes a sign your employer has lost interest in you too. 4. **You can’t remember your last promotion, raise, or recognition** — and you’ve stopped caring that you haven’t gotten one. 5. **You arrive late and leave early** for no real reason beyond minimizing time spent at work. “Overtime” has become a dirty word. 6. **You look forward to the social side of work more than the work itself** — and you’re the one everyone comes to for office gossip and management complaints. 7. **You’re convinced things must be better elsewhere.** This “grass is greener” instinct is rarely accurate, especially if it’s the second or third job in a row that’s made you feel this way. 8. **You spend 2-3+ hours a day on non-work activities** — social media, news, online shopping, message boards — as a matter of routine. 9. **All you care about is the paycheck**, not professional growth, your team, or where the company is headed. 10. **You skip after-work social, mentoring, or networking events** that engaged employees make time for. 11. **You tune out in most meetings** and dread the thought of another one, especially in-person or scheduled late in the day. 12. **You never volunteer for anything** that could mean extra visibility or recognition, even when the opportunity is there. 13. **You blame office politics for everything wrong** and believe you could do better if only you had the authority. 14. **You resent colleagues who seem to enjoy their work** and are getting the recognition you feel you deserve. 15. **You do just enough to avoid detection.** Unless your manager is in the same boat, disengagement gets noticed eventually — and tends to curdle into resentment once it does. 16. **You spend excessive time on LinkedIn or job boards** “just browsing,” or you’ve actually considered one of those too-good-to-be-true spam job listings. 17. **You feel genuinely low on Sunday evenings** at the thought of the workweek ahead, especially if it means commuting into an office. 18. **You’re staying only because the job market feels uncertain**, and you’ve talked yourself into believing there’s no point looking elsewhere right now. 19. **You’ve stopped mentoring junior colleagues** and feel resentful watching them try to do parts of your job without your years of experience. 20. **You take sick or mental health days on a regular basis** when you’re not actually unwell, just to get distance from the job. 21. **You’ve read this entire list and recognized yourself in most of it** — 15 or more is the threshold worth taking seriously. **Bonus sign:** The thought of going into the office more often genuinely unsettles you — not because of the commute, but because it means more real-time interaction with colleagues and having to visibly perform interest in work you’ve checked out of. ## When Disinterest Turns Into Checked-Out Behavior There’s a further stage past simple disengagement, where disinterest starts showing up as actively minimizing your actual working hours rather than just feeling bored. A few additional patterns worth an honest self-check: - **Scheduling personal errands during work hours** — a haircut at 2pm, dropping off dry cleaning mid-morning — specifically to protect your personal time instead. - **Treating remote or work-from-home days as a bonus day off** rather than a change of location for the same job. - **Spending work hours actively job-hunting** — applying to other roles or scrolling LinkedIn during the day rather than after hours. - **Disappearing for long stretches during the day** — an hour-plus “errand,” a gym session, or a matinee movie — without telling anyone. - **Confusing work ethic with entitlement** — believing you’re owed recognition or pay regardless of your actual output, rather than because of it. None of this is a moral judgment — most people end up here at some point in a job or company that isn’t working for them anymore. The risk is letting the pattern become a habit that follows you into the next job too. ## What This Pattern Usually Means If you recognize 15 or more signs from the main list, it’s a strong signal that it’s time for a change — either within your company if the problem is specific to your current role or manager, or a genuinely new company if the pattern has repeated across more than one job. Don’t wait for it to get better on its own. In most cases, prolonged disengagement doesn’t resolve without a deliberate change — either in your role, your employer, or how you’re approaching the work. *[Subscribe here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) for more career and money guidance as you figure out the next move.* ## What to Do About It A few practical next steps if this list hit close to home: - **Separate the role from the company.** If it’s specifically your current assignment or manager, an internal move might solve it without the risk of starting over externally. - **Check whether the pattern is you or the job.** If the same signs have shown up in your last two or three jobs, that’s worth reflecting on honestly before assuming the next employer will be different. - **Start preparing before you’re forced to.** Whether you’re planning a voluntary move or worried about being on the other end of a layoff, our [guide to preparing for a potential layoff](https://savingtoinvest.com/tips-on-preparing-for-potential-job/) covers the practical steps to take ahead of time. - **Look at where the actual job growth is.** If you’re genuinely ready for a change, our [best job prospects guide](https://savingtoinvest.com/best-job-prospects-and-employment/) covers where BLS data shows real, durable demand right now. - **Consider whether AI is part of the picture.** If your disinterest is tangled up with anxiety about your role’s long-term security, our [tech layoffs and AI shift guide](https://savingtoinvest.com/tech-layoffs-and-the-ai-shift-what-ongoing-job-cuts-mean-for-your-career-and-wallet/) covers what’s driving the current wave of AI-related job cuts and how to protect yourself either way. **Related reading:** - [Preparing for a potential layoff: steps to take ahead of time](https://savingtoinvest.com/tips-on-preparing-for-potential-job/) - [Best job prospects for 2026 and beyond](https://savingtoinvest.com/best-job-prospects-and-employment/) Frequently Asked Questions QHow many signs indicate I should actually look for a new job? AIf you recognize 15 or more of the 21 signs in yourself and the feeling has persisted for weeks rather than a few bad days, it's a strong signal to start looking - either for a new role internally or a new company. QIs it normal to feel disinterested in your job sometimes? AYes. Occasional disengagement happens to almost everyone. It becomes a real concern when it persists for weeks and starts affecting your actual behavior at work, rather than being a short-term slump. QWhat's the difference between losing interest and being a checked-out employee? ALosing interest usually shows up as boredom, disengagement in meetings, and minimal effort. Checked-out behavior goes further - actively minimizing working hours through personal errands during the day, treating remote days as time off, or job-hunting during work hours. QIs the 'grass is greener' feeling usually accurate? ARarely, especially if it's the second or third job in a row that's triggered the same feeling. That pattern often points to something about your approach to work rather than the specific employer. QWhat should I do if I recognize most of these signs in myself? AFigure out first whether the issue is specific to your current role and manager (which an internal move might fix) or a pattern that's followed you across multiple jobs (which suggests a bigger change is worth considering). Don't assume it will resolve on its own. **Categories:** Career and Relationships **Tags:** bored, career, employer, Employment, Fired, interest, job, recruitment --- ### [SECURE 2.0 Act Updates for 2026 and 2027: Roth Catch-Up Rules, the New Saver’s Match, and Mandatory Auto-Enrollment](https://savingtoinvest.com/navigating-the-new-rules-how-the-secure-2-0-act-impacts-your-retirement-catch-up-contributions/) **Published:** September 22, 2025 **Author:** Andy **Content:** ### Key Takeaways - The Roth catch-up mandate now applies starting in 2026: workers 50+ whose prior-year FICA wages from their employer exceeded $150,000 (raised from the original $145,000 statutory figure) must make catch-up contributions as Roth (after-tax). - 2026 is a 'good faith compliance' year for the Roth catch-up rule; the final regulations formally apply starting in 2027, when strict compliance is required. - New 401(k) and 403(b) plans established after December 29, 2022 must now automatically enroll employees at 3%-10%, escalating 1% annually, as of the 2025 plan year and continuing into 2026. - Most retirement plans must formally adopt SECURE 2.0 plan amendments by December 31, 2026 (or January 1, 2027 for governmental and collectively bargained plans). - Starting in 2027, the nonrefundable Saver's Credit is replaced by the Saver's Match - a 50% federal matching contribution of up to $1,000 per person, deposited directly into your retirement account. - First Saver's Match deposits (for 2027 contributions) are expected in early 2028. SECURE 2.0 has been rolling out in phases since it passed in 2022, and 2026 is the year several of its biggest provisions stopped being “coming soon” and started being real. The Roth catch-up mandate for high earners is now in effect. Mandatory auto-enrollment applies to newly created plans. And in 2027, the government starts directly matching retirement contributions for lower-income savers through the new Saver’s Match. Here’s what’s actually changed and what’s still ahead. Covered in this Article: [Toggle](#) - [The Roth Catch-Up Mandate: What’s Actually in Effect Now](#The_Roth_Catch-Up_Mandate_Whats_Actually_in_Effect_Now) - [Mandatory Auto-Enrollment for New Plans](#Mandatory_Auto-Enrollment_for_New_Plans) - [Plan Amendment Deadline: December 31, 2026](#Plan_Amendment_Deadline_December_31_2026) - [What’s Coming in 2027: The Saver’s Match](#Whats_Coming_in_2027_The_Savers_Match) - [Looking Ahead: 2028 and Beyond](#Looking_Ahead_2028_and_Beyond) ## The Roth Catch-Up Mandate: What’s Actually in Effect Now The most consequential [SECURE 2.0](https://savingtoinvest.com/coronavirus-stimulus-bill-allows-early-401k-or-ira-retirement-account-distributions/) change for higher earners is the mandatory Roth catch-up rule, and 2026 is the year it stopped being theoretical. If your FICA wages from your plan’s sponsoring employer exceeded **$150,000** in the prior calendar year, any catch-up contributions you make in 2026 must be designated as [Roth](https://savingtoinvest.com/401k-roll-overs-to-roth-accounts-may-soon-be-permitted/) — after-tax dollars, with tax-free qualified withdrawals in retirement. That threshold was adjusted upward from the SECURE 2.0 Act’s original $145,000 figure when the IRS issued its [final regulations](https://www.federalregister.gov/public-inspection/2025-17865/catch-up-contributions) in September 2025, and it’s now indexed to inflation going forward. Here’s the nuance that trips people up: the Treasury and IRS finalized this rule in September 2025, but gave plans a transition year. For 2026, plan administrators only need to follow a “reasonable, good faith interpretation” of the statute — meaning some flexibility still exists in exactly how it’s implemented. Starting in **2027**, the full final regulations apply strictly, with no more good-faith cushion. If your plan doesn’t yet offer a Roth option, this could technically block you from making any catch-up contributions at all until one is added — worth confirming with your plan administrator now rather than waiting until 2027. There’s a small carve-out worth knowing: plans aren’t required to correct catch-up contributions that should have been Roth if the error is $250 or less, and the rule doesn’t apply to the special 15-year-of-service catch-up available to long-tenured employees in 403(b) plans at schools, hospitals, and nonprofits. For the full breakdown of dollar limits — including the [super catch-up for ages 60–63](https://savingtoinvest.com/when-can-i-make-catch-up-contributions-to-401k-ira-403b-and-simple-ira-retirement-plans/) — see our dedicated catch-up contribution limits guide, which covers the exact 2026 figures for 401(k), IRA, and [SIMPLE plans](https://savingtoinvest.com/simple-ira-contribution-and-income-limits-small-business-retirement-plans/). ## Mandatory Auto-Enrollment for New Plans A separate SECURE 2.0 provision quietly became mandatory rather than optional: employers establishing a **new** [401(k)](https://savingtoinvest.com/taking-advantage-of-new-401k/) or 403(b) plan after December 29, 2022 must automatically enroll eligible employees, generally starting with the 2025 plan year and continuing now into 2026. The mechanics: new hires (and existing employees not already participating) must be defaulted into the plan at a deferral rate between 3% and 10% of pay, unless they actively opt out or choose a different rate. That rate must then increase by 1 percentage point each year until it reaches at least 10% (and no more than 15%), unless the employee intervenes. Employees always retain the right to opt out entirely or set their own contribution level. This doesn’t apply retroactively to plans that already existed before the law passed, so if you’ve been with your employer for years under an older plan, nothing changes here. But if you’re joining a company with a newly established plan, don’t be surprised to see a default deferral already coming out of your paycheck — check your rate and adjust it if 3–10% isn’t right for your situation. ## Plan Amendment Deadline: December 31, 2026 Behind the scenes, plan sponsors have been racing against a deadline that directly affects how quickly these provisions show up in your specific plan. Under IRS Notice 2024-2, most qualified retirement plans have until **December 31, 2026** to formally amend their plan documents to reflect the full slate of SECURE 2.0 changes — governmental plans and those under collective bargaining agreements get until January 1, 2027. This is also why adoption of features like [auto-portability](https://savingtoinvest.com/choices-for-your-401k-retirement-plan-when-you-leave-or-change-your-job-including-an-ira-rollover/) — the provision that lets a small 401(k) balance automatically follow you to a new employer’s plan when you change jobs — is still uneven across employers. Expect a wave of plan amendment announcements through the rest of 2026 as recordkeepers finalize this work ahead of the deadline. ## What’s Coming in 2027: The Saver’s Match The single biggest SECURE 2.0 change still ahead is the replacement of the existing Saver’s Credit with the **Saver’s Match**, effective for contributions made starting in 2027. Today’s Saver’s Credit is a nonrefundable tax credit — meaning it can only reduce your tax bill to zero, and does nothing for people who don’t owe enough tax to use it. The Saver’s Match fixes that by converting the benefit into an actual federal matching contribution, deposited directly into your retirement account regardless of your tax liability. Here’s how it will work: the government matches 50% of your retirement contributions, up to $2,000 in contributions per person — meaning a maximum match of **$1,000** annually. The match phases out based on income. For single filers, the full match applies at adjusted gross income of $20,500 or below, phasing out completely by $35,500; for head of household, the range is $30,750 to $53,250; for married couples filing jointly, the full match applies up to $41,000 in AGI, phasing out by $71,000. (These figures adjust for inflation, so confirm the exact numbers closer to 2027.) One important timing detail: the match is based on 2027 contributions, but the actual deposits into your account aren’t expected until **early 2028** — so don’t expect to see this money show up immediately after you contribute. ### Notice 2026-48: The First Round of Saver’s Match Rules I said I’d update this section once the IRS put out real guidance, and that happened on August 7, 2026. Treasury and the IRS issued [Notice 2026-48](https://www.irs.gov/pub/irs-drop/n-26-48.pdf), announcing their intent to propose formal regulations for how the Saver’s Match will actually get administered. The dollar figures above are unchanged — this notice confirms them rather than revising them — but it fills in mechanics that weren’t public before. The biggest addition: a brand-new tax form. Starting with 2027 contributions filed in 2028, you’ll claim the match on **Form 8880-A, “Saver’s Match for Qualified Retirement Savings Contributions”** — a new form separate from today’s Form 8880, where you’ll report your MAGI, filing status, qualifying contributions, and the account you want the match deposited into. The notice also names which accounts are eligible to receive a match deposit: traditional and Roth IRAs, 401(k), 403(b), SIMPLE IRA, SEP, and governmental 457(b) plans. One catch — a plan isn’t required to accept Saver’s Match deposits just because it’s on this list, so employer plans that want to participate will likely need a plan amendment first. Treasury is proposing two different ways the money could actually land in your account, and both are still open for public comment: - **Automatic Match Path** — your employer plan reports your contribution data directly to the IRS, and the match gets deposited automatically, no extra paperwork on your end. - **Rollover Path** — the IRS issues you a “Saver’s Match Confirmation Number,” which you hand to your plan; Treasury deposits the match into a conduit IRA that immediately rolls into your account. Notably, Treasury says it’s still working out how deposits would actually route into a traditional or Roth IRA specifically, as opposed to an employer plan — that piece isn’t settled yet. This rulemaking also ties back to Executive Order 14403, which separately directed Treasury to stand up TrumpIRA.gov, a curated directory of low-cost IRAs (expense ratios capped at 0.15%, no minimum balance) for workers without an employer plan, targeted to launch by January 1, 2027. None of this is final. The public comment period on Notice 2026-48 runs through **October 5, 2026**, and Treasury is expected to issue proposed (then final) regulations sometime after that — still well ahead of the early-2028 first-payment date. I’ll keep updating this section as that rulemaking moves forward. ## Looking Ahead: 2028 and Beyond The next milestone to watch isn’t a new law — it’s implementation. Early 2028 will be the real-world test of whether the Saver’s Match actually reaches the lower-income savers it’s designed for, since that’s when the first matching deposits based on 2027 contributions are expected to land. Between now and then, watch for the finalized Form 8880-A instructions and Treasury’s decision on how IRA-based deposits will actually work. On the compliance side, 2027 is when the “good faith” flexibility on the Roth catch-up rule disappears entirely — plans that haven’t fully nailed down their implementation by then will be operating without a safety net. If your employer’s plan still doesn’t offer a Roth catch-up option, 2027 is the year to push for clarity, since strict enforcement begins. I’ll continue updating this page as the IRS releases additional guidance on Saver’s Match administration and as the December 2026 plan amendment deadline plays out across the industry. *[Subscribe here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get notified as new SECURE 2.0 guidance is released.* Frequently Asked Questions QWhat is the Roth catch-up income threshold for 2026? AWorkers 50 and older whose FICA wages from their plan's sponsoring employer exceeded $150,000 in the prior calendar year must make catch-up contributions as Roth (after-tax) starting in 2026. This threshold was raised from the SECURE 2.0 Act's original $145,000 figure and is now indexed to inflation. QIs the Roth catch-up rule fully enforced in 2026? ANot strictly. 2026 is a 'good faith compliance' transition year, giving plan administrators some flexibility in implementation. The final regulations apply in full starting in 2027, with no more transition relief. QWhat is the SECURE 2.0 Saver's Match? AStarting with 2027 contributions, the Saver's Match replaces the existing nonrefundable Saver's Credit with a direct federal matching contribution - 50% of contributions up to $2,000, for a maximum match of $1,000 per person, deposited into the saver's retirement account regardless of tax liability. QWhen will I actually receive my Saver's Match deposit? AThe match is based on contributions made in 2027, but the first actual deposits are expected in early 2028, not immediately after you contribute. QDoes mandatory auto-enrollment apply to my current 401(k)? AOnly if your employer established the plan after December 29, 2022. Auto-enrollment requirements generally apply starting with the 2025 plan year. Plans that existed before that date are not required to add auto-enrollment retroactively. QWhen do employer plans have to formally adopt SECURE 2.0 changes? AMost plans must formally amend their plan documents by December 31, 2026. Governmental plans and those under collective bargaining agreements have until January 1, 2027. **Categories:** Taxes and Retirement --- ### [VA Disability Rates 2026 and 2027 Outlook: Full Payout Table by Rating After COLA](https://savingtoinvest.com/va-disability-compensation-rates/) **Published:** August 17, 2026 **Author:** Andy **Content:** ### Key Takeaways - VA disability compensation rose 2.8% for 2026, the same COLA used for Social Security, effective December 1, 2025 and reflected in January 2026 payments. - A 100% rating now pays $3,938.58/month with no dependents, up from $3,831.30 in 2025. - A 10% rating pays $180.42/month; ratings of 10% and 20% are flat amounts regardless of dependents. - Extra pay for a spouse, children, or dependent parents only applies at a combined rating of 30% or higher. - Combined ratings aren't simple addition - VA uses its own 'whole person' formula that reduces the impact of each additional condition. - Gulf War veterans with chronic fatigue syndrome, fibromyalgia, or functional GI disorders can get presumptive service connection - no proof of a specific in-service cause required, just service in the Southwest Asia theater since August 2, 1990 and a qualifying diagnosis. - The 2027 COLA is currently tracking around 3.8%, based on early Social Security Administration estimates, though the official VA figure isn't announced until October. If you have a VA disability rating, your monthly compensation went up 2.8% for 2026 — the same [cost-of-living adjustment (COLA)](https://savingtoinvest.com/social-security-tax-and-cost-of-living-adjustment-cola/) that applies to Social Security, since both use the same inflation measure. That took effect December 1, 2025, meaning the higher amount showed up in your January 2026 payment. Here’s the full 2026 payout table by rating percentage, how dependents change the math, and what’s next for 2027. Covered in this Article: [Toggle](#) - [2026 VA Disability Rates by Rating Percentage (No Dependents)](#2026_VA_Disability_Rates_by_Rating_Percentage_No_Dependents) - [How Dependents Change Your Payment](#How_Dependents_Change_Your_Payment) - [Why Your Combined Rating Isn’t Simple Addition](#Why_Your_Combined_Rating_Isnt_Simple_Addition) - [Special Monthly Compensation](#Special_Monthly_Compensation) - [Gulf War Presumptive Conditions: Which Illnesses Qualify Without Proving Direct Service Connection](#Gulf_War_Presumptive_Conditions_Which_Illnesses_Qualify_Without_Proving_Direct_Service_Connection) - [Looking Ahead: The 2027 COLA](#Looking_Ahead_The_2027_COLA) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## 2026 VA Disability Rates by Rating Percentage (No Dependents) These are the basic monthly rates for a veteran with no spouse, children, or dependent parents: Rating2025 Monthly Rate2026 Monthly Rate (2.8% COLA)10%$175.51$180.4220%$346.95$356.6630%$537.42$552.4740%$774.16$795.8450%$1,102.04$1,132.9060%$1,395.93$1,435.0270%$1,759.19$1,808.4580%$2,044.89$2,102.1590%$2,297.96$2,362.30100%$3,831.30$3,938.58 **Note:** These are VA’s basic rates, before any dependent add-ons. Always confirm your exact payment on [va.gov](https://www.va.gov/disability/compensation-rates/veteran-rates/) or your VA benefits letter, since rounding and effective dates can shift a few cents from the figures above. ## How Dependents Change Your Payment Ratings of 10% and 20% pay the same flat amount no matter your family situation — VA doesn’t add anything for a spouse, children, or dependent parents at those two ratings. Once your combined rating hits **30% or higher**, additional monthly amounts kick in for: - A spouse (roughly $65/month at the 30% rating, scaling up to around $220/month at 100%) - Each dependent child under 18 (or under 23 if a full-time student) - A spouse who requires Aid and Attendance - Dependent parents The exact add-on amount increases at each higher rating tier, so a veteran with a 70% rating and a spouse plus two kids receives meaningfully more than the base 70% rate alone. VA’s own rate tables break out every dependent combination — worth checking directly if you have dependents, since the combinations get detailed quickly. ## Why Your Combined Rating Isn’t Simple Addition If you have multiple rated conditions, VA doesn’t just add the percentages together. It uses what’s informally called the “whole person” or “VA math” formula: each additional disability is applied to the *remaining* percentage of the person still considered “able,” not to the full 100%. For example, a veteran with a 50% rating and a 30% rating doesn’t get 80%. VA treats the second condition as reducing 30% of the remaining 50% (the portion not already accounted for), which works out to a combined rating of 65% — rounded to the nearest 10, landing at 70%. This is one of the more confusing parts of the VA ratings system, and it’s worth using VA’s official combined ratings table (or an online combined-rating calculator) rather than adding percentages by hand. ## Special Monthly Compensation Some veterans qualify for **Special Monthly Compensation (SMC)** on top of the standard rates above — this applies for specific circumstances like the loss of use of a limb, blindness, or needing regular Aid and Attendance from another person. SMC rates are separate from and higher than the standard schedule, and eligibility depends on the specific nature of your service-connected conditions. ## Gulf War Presumptive Conditions: Which Illnesses Qualify Without Proving Direct Service Connection Separate from the rating table above, VA “presumes” certain hard-to-diagnose illnesses are connected to Gulf War service – meaning you don’t have to prove a specific in-service event or exposure caused the condition, just that you served in the right place and time and have the diagnosis. These are called Medically Unexplained Chronic Multisymptom Illnesses (MUCMI), and the presumptive list includes **chronic fatigue syndrome**, **fibromyalgia**, and **functional gastrointestinal disorders** (along with other undiagnosed-illness symptom clusters). Normally you’d need a doctor’s nexus letter connecting your condition to a specific event in service – presumptive status skips that requirement entirely. **Who qualifies:** veterans who served in the Southwest Asia theater of military operations on or after August 2, 1990. For many of these conditions, the illness needs to have become at least 10% disabling by December 31, 2026, and symptoms generally need to have lasted six months or more. **How to file:** submit all qualifying conditions in a single claim rather than filing them one at a time – each additional claim on the same underlying illness slows down the whole review. Document when your symptoms started, how often they occur, and how they limit your work and daily activities; you can file through VA.gov, by mail, or with help from a VA-accredited representative or veterans service organization. ## Looking Ahead: The 2027 COLA VA disability rates track the same annual COLA calculation used for Social Security retirement and disability benefits, based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Early estimates for the 2027 COLA are tracking around 3.8%, though that figure moves throughout the year as new inflation data comes in, and the official number isn’t confirmed until the Social Security Administration’s October announcement. If the 2027 COLA lands near current estimates, a 100% rating would rise from $3,938.58 to somewhere in the $4,085–$4,090/month range — I’ll update this page with the confirmed figure as soon as it’s official. If you’re a veteran also weighing when to start Social Security retirement benefits alongside your VA compensation, my [guide to claiming Social Security in 2026](https://savingtoinvest.com/claiming-social-security-benefits-later/) walks through the tradeoffs between claiming early, at full retirement age, or waiting until 70 — a decision that’s independent of your VA rating but often gets made around the same time. ## Common Issues to Watch Out For **Confusing the COLA percentage with your dollar increase.** A 2.8% COLA means everyone’s rate goes up by that same percentage, but the dollar amount obviously differs by rating — a 2.8% bump is about $5 at the 10% rating and over $107 at the 100% rating. **Assuming dependents add at every rating.** If you’re rated below 30%, dependent status doesn’t change your payment at all, which surprises some veterans who assume any dependent automatically means more money. **Adding combined ratings by hand.** As covered above, VA’s combined ratings formula isn’t simple addition — always check the official combined ratings table rather than guessing. **Missing a rating increase evaluation.** If your service-connected condition has worsened, you can file for an increased rating at any time — it isn’t limited to a specific enrollment period the way [Medicare](https://savingtoinvest.com/changes-to-your-2026-medicare-coverage/) or ACA coverage is. Frequently Asked Questions QHow much does 100% VA disability pay in 2026? AA veteran with a 100% rating and no dependents receives $3,938.58/month in 2026, up from $3,831.30 in 2025 after the 2.8% COLA. QDo VA disability rates increase every year? AYes, VA disability compensation gets the same annual cost-of-living adjustment (COLA) as Social Security, based on the CPI-W inflation measure. The increase is announced each October and takes effect December 1 of that year. QDoes having a spouse or kids increase my VA disability payment? AOnly if your combined rating is 30% or higher. At 10% and 20%, VA pays a flat rate regardless of dependents. At 30% and above, you receive additional monthly amounts for a spouse, dependent children, a spouse needing Aid and Attendance, or dependent parents. QWhat conditions qualify for Gulf War presumptive service connection? AChronic fatigue syndrome, fibromyalgia, and functional gastrointestinal disorders, along with other undiagnosed-illness symptom clusters classified as Medically Unexplained Chronic Multisymptom Illnesses (MUCMI). You need to have served in the Southwest Asia theater on or after August 2, 1990, and for many conditions the illness must have become at least 10% disabling by December 31, 2026, with symptoms lasting six months or more. Presumptive status means you don't need to prove a specific in-service event caused the condition. QIf I have a 50% rating and a 30% rating, is my combined rating 80%? ANo. VA uses a 'whole person' formula where each additional disability is applied to the remaining percentage rather than added directly. A 50% and a 30% rating combine to roughly 65%, which rounds to a 70% combined rating - not 80%. QWhat is Special Monthly Compensation? ASMC is an additional payment above the standard rating-based rates, available for specific situations like loss of use of a limb, blindness, or needing regular Aid and Attendance. It's assessed separately from your basic disability rating. QWhen will the 2027 VA disability COLA be announced? AThe Social Security Administration typically announces the COLA figure in October, which VA disability compensation mirrors. Early 2027 estimates are tracking around 3.8%, but the official number won't be confirmed until then. **Categories:** Taxes and Retirement --- ### [IRS Code 806 Explained: What Your Withholding Credit Means for Your 2026-2027 Refund](https://savingtoinvest.com/what-does-irs-code-806-mean-on-my-tax-transcript/) **Published:** February 3, 2024 **Author:** Andy **Content:** ### Key Takeaways - Code 806 is your total federal income tax and FICA withholding credit for the year - not your refund amount. - The IRS compares code 806 to your total tax liability: a bigger 806 number means a refund, a smaller one means you owe. - Multiple jobs or freelance income can cause your combined withholding to fall short of your real liability, even if each individual employer withheld correctly. - 1099-DA cost-basis mismatches on digital asset sales are a growing source of transcript discrepancies, usually paired with Code 570 rather than a simple 806 error. - OBBBA's no-tax-on-tips and no-tax-on-overtime deductions can throw off the usual relationship between code 806 and your liability if your employer's payroll hasn't fully adjusted. - Look for code 846 to see your actual, final refund amount and date once the IRS finishes processing. Code 806 on your IRS transcript is the total federal income tax and FICA (Social Security and Medicare) tax withheld on your behalf for the year. It isn’t your refund — it’s the credit the IRS weighs against your actual tax liability to figure out whether you’re getting money back or owe more. If you’ve been scrutinizing your [IRS tax transcript](https://savingtoinvest.com/getting-a-free-copy-of-your-irs-tax-return-information-form-4506t-irs-tax-transcript/) (free through your IRS online account) and landed on this code, here’s what it actually means and how to use it. ## What Is IRS Code 806? Officially labeled “Credit for Withheld Taxes and Excess FICA,” code 806 is the running total of everything withheld from your paychecks (or 1099 payments, if backup withholding applied) throughout the tax year. Think of it as a pre-payment on your annual tax bill. Your employer sends this money to the IRS on your behalf all year, and code 806 is simply the receipt showing how much arrived. ![Code 806 IRS transcript - Credit for Withheld Taxes and Excess FICA](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2024/02/806.png?resize=820%2C311&ssl=1)Code 806 on an IRS tax transcript## Where Does Code 806 Come From? Code 806 generally corresponds to Form 1040, line 25a (federal income tax withheld from W-2s), plus related withholding reported on 1099s and FICA. You’ll find it on your free IRS tax transcript once your return posts to the IRS master file. ## What Does the Amount Next to Code 806 Mean? The IRS compares the dollar amount on the 806 line to your total tax liability for the year. Whichever number is bigger determines what happens next. - **Refund** — if code 806 is larger than your tax liability, the difference comes back to you as a refund. - **Tax owed** — if code 806 falls short of your liability, you’ll need to pay the difference. Look for [code 846](https://savingtoinvest.com/code-846-refund-issued-on-your-irs-tax-transcript-what-it-means-for-your-direct-deposit-or-paper-check-refund-payment/) on your transcript, or check the [WMR/IRS2Go status tool](https://savingtoinvest.com/wmr-and-irs2go-status-differences-return-received-accepted-or-under-review-and-refund-approved-versus-refund-sent/), to see the exact refund amount once the IRS finishes the calculation. ## Two Examples **Sarah** is a W-2 employee with one job. Her transcript shows code 806 at $9,400 — the sum of everything her employer withheld all year. Her total tax liability comes out to $8,100, so the $1,300 difference becomes her refund. **David** worked two jobs for part of the year and freelanced on the side. His code 806 combines withholding from both W-2s plus any backup withholding from his 1099 income — but since neither employer knew about the other, his combined withholding actually undershot his real liability, and he owes $600 instead of getting a refund. This is a common surprise for anyone who changed or added jobs mid-year. ## What If the Amount on My Transcript Looks Wrong? Discrepancies are rare, but worth checking if the 806 number doesn’t match what you expected: - **Data entry errors** — mistakes during processing happen occasionally; compare code 806 against the withholding boxes on your actual W-2s and 1099s, and contact your employer or the IRS if there’s a real mismatch. - **Multiple employers** — if you had more than one employer in a year, make sure your transcript reflects combined withholding from all of them, not just one. - **1099-DA basis mismatches** — if you sold digital assets (crypto), your broker now issues Form 1099-DA. If the cost basis or withholding it reports doesn’t line up with your return, it tends to trigger a review paired with [Code 570](https://savingtoinvest.com/what-is-tax-code-tc-570-on-my-irs-transcript-and-will-it-delay-my-refund-account-freeze-or-additional-account-actions-pending/) rather than showing up as a simple 806 discrepancy. If your [refund looks lower than you expected](https://savingtoinvest.com/why-is-my-tax-refund-so-low-compared-to-prior-years/) even though code 806 looks right, the gap is more often an offset or a smaller credit than a withholding problem. ## Common Issues to Watch Out For - **Mistaking code 806 for your refund amount.** It’s your withholding credit, not your refund — your actual refund is whatever nets out after credits, liability, and any offsets are applied. - **Forgetting to update your W-4 after a life event.** A new job, marriage, or a new dependent all change how much should be withheld — see [when to adjust your paycheck withholding](https://savingtoinvest.com/change-your-paycheck-tax-withholding-after-these-personal-and-financial-life-events/) for the common triggers. - **Assuming self-employment income withholds automatically.** Unless backup withholding applies, 1099 income generally isn’t withheld at all — that’s what quarterly estimated payments are for, and it’s a frequent reason code 806 looks lower than someone expects. - **Not accounting for the OBBBA “no tax on tips” and “[no tax on overtime](https://savingtoinvest.com/no-tax-on-overtime-who-qualifies-how-to-calculate-your-deduction-with-e/)” deductions.** These change how some income is taxed starting with the 2025 tax year, but payroll withholding doesn’t always catch up right away — see the [full OBBBA rundown](https://savingtoinvest.com/reconciling-trumps-big-beautiful-bill-bbb/) if this applies to you. ## Looking Ahead: 2027 The mechanics of code 806 itself won’t change for the 2027 filing season — it’s always going to be your withholding total, plain and simple. What’s worth watching is whether your withholding actually keeps pace with two newer wrinkles: OBBBA’s tips/overtime deductions, and Form 1099-DA reporting for digital assets, both still relatively new as of the 2026 tax year. If your employer’s payroll system hasn’t fully caught up to either change, code 806 can end up higher or lower than expected relative to your real liability — worth a mid-year W-4 checkup if either applies to you heading into 2027. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) for updates as the IRS clarifies 2027 withholding guidance.* Frequently Asked Questions QIs code 806 my tax refund amount? ANo. Code 806 is your total withholding credit for the year. Your actual refund (or amount owed) depends on comparing that credit to your total tax liability, plus any credits or offsets - look for code 846 for the final refund figure. QWhy doesn't my code 806 amount match my W-2 exactly? ACode 806 combines withholding from every W-2 and any backup withholding from 1099 income you had during the year, not just one source. If you had multiple employers or freelance income, check that all of them are reflected. QWhat if code 806 is lower than I expected? ACommon causes are self-employment income that wasn't withheld at all, multiple employers that under-withheld in combination, or a data entry error. Compare it against your actual W-2s and 1099s first. QDoes code 806 include self-employment tax? ANo. Code 806 only reflects withholding - taxes actually taken out and sent to the IRS during the year. Self-employment tax on 1099 income you didn't have withholding on is calculated separately when you file. QHow do OBBBA's no-tax-on-tips and no-tax-on-overtime rules affect code 806? AThey change how much of your income is taxable, which can affect your liability more than your withholding. If your employer's payroll system hasn't fully adjusted, code 806 may look mismatched relative to what you expect your refund or bill to be. QWhere can I see my actual refund amount and date? ALook for code 846 (Refund Issued) on your transcript, or check the WMR/IRS2Go status tool once your return finishes processing. **Categories:** Taxes and Retirement --- ### [Code 846 and the PATH Act Refund Hold: What EITC and ACTC Filers Should Expect in 2027](https://savingtoinvest.com/processing-dates-to-get-my-refund-payment-dates/) **Published:** February 14, 2023 **Author:** Andy **Content:** ### Key Takeaways - Code 846 (Refund Issued), not your transcript's processing date, is what actually confirms your refund amount and date. - By law, the IRS can't release EITC or ACTC refunds before mid-February, and the hold applies to your whole refund, not just the credit portion. - February 15, 2027 falls on Presidents Day, so the PATH hold lifts on Tuesday, February 16, 2027 instead of the 15th. - Most early EITC/ACTC e-filers using direct deposit should see an updated WMR status by February 21 and a refund by March 2, per current IRS guidance. - If 846 hasn't posted after your processing date, check for codes 570, 971, 420, or 898 to see what the IRS is still working through. - Checking your transcript more than once a day won't surface new information faster - it updates on a fixed daily or weekly cycle tied to your cycle code. Code 846 is the line on your IRS transcript that actually confirms your refund — not the “processing date” near the top, which is just the IRS’s internal estimate of its next update on your account. That distinction matters most if you’re waiting on a refund that includes the Earned Income Tax Credit ([EITC](https://savingtoinvest.com/earned-income-tax-credit-eitc-qualification-and-income-threshold-limits/)) or the Additional Child Tax Credit (ACTC), because those refunds go through an extra, legally required hold before 846 can even post. I get a version of this question every filing season. Below is how to tell processing date and refund date apart, exactly how the PATH Act hold plays out for EITC/ACTC filers, and what it means specifically for the 2026 tax return you’ll file in early 2027. Covered in this Article: [Toggle](#) - [Code 846 vs. the Processing Date: The Actual Difference](#Code_846_vs_the_Processing_Date_The_Actual_Difference) - [How the PATH Act Hold Works for EITC and ACTC Filers](#How_the_PATH_Act_Hold_Works_for_EITC_and_ACTC_Filers) - [What Your Transcript Shows While You’re Waiting](#What_Your_Transcript_Shows_While_Youre_Waiting) - [Two Examples for the 2027 Filing Season](#Two_Examples_for_the_2027_Filing_Season) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027 Filing Season](#Looking_Ahead_2027_Filing_Season) ## Code 846 vs. the Processing Date: The Actual Difference The processing date on your transcript is tied to your IRS cycle code — it’s the IRS’s internal estimate of the next date it expects to update your account, not a promise about your refund. If the IRS finishes by that date, it can end up matching your refund date, but that’s a coincidence, not a guarantee. [Code 846 (Refund Issued)](https://savingtoinvest.com/code-846-refund-issued-on-your-irs-tax-transcript-what-it-means-for-your-direct-deposit-or-paper-check-refund-payment/) is different. That’s the line with an actual dollar amount and a date, and it means the IRS has approved and scheduled your refund. Once 846 posts, WMR/IRS2Go typically updates to “Refund Sent” within a day or so, and direct deposits usually land within a few business days of the 846 date. For the full rundown of transcript codes like 150, 806, 766, and 768 with annotated examples, see my companion guide on [decoding your IRS transcript](https://savingtoinvest.com/using-your-irs-transcript-to-get-your-tax-return-and-refund-processing-status-and-key-dates/). ## How the PATH Act Hold Works for EITC and ACTC Filers By law, the IRS can’t issue a refund that includes the EITC or [ACTC](https://savingtoinvest.com/child-and-kiddie-tax-credit-and-income-thresholds/) before mid-February — and that hold applies to your entire refund, not just the portion tied to the credit. The rule exists to give the IRS time to cross-check the income and dependent information on your return against what employers and other filers actually reported, catching fraudulent claims before money goes out. The statutory trigger date is February 15. When that date falls on a weekend or federal holiday, the hold lifts on the next business day instead — which is exactly what happens in 2027. **February 15, 2027 is a Monday, and it’s also Presidents Day** (Washington’s Birthday), a federal holiday. That pushes the PATH hold’s actual lift date to **Tuesday, February 16, 2027** for anyone filing early in that season. It’s a small shift, but worth knowing if you’re tracking the calendar closely. Once the hold lifts, two dates matter and they aren’t the same day: the date your WMR/IRS2Go status and transcript update to confirm the hold has been released, and the date your refund is actually paid. Per the IRS’s own guidance, most early EITC/ACTC filers should see an updated WMR status by February 21, with refunds typically arriving by March 2 for e-filers using direct deposit with no other issues on the return — see the [IRS’s official refund-timing page](https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/when-to-expect-your-refund-if-you-claimed-the-earned-income-tax-credit-or-additional-child-tax-credit) for the current guidance. For the full historical PATH release-date pattern and calendar, see my [PATH Act refund delays guide](https://savingtoinvest.com/tax-refund-payment-delays-likely-according-to-the-irs/). *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get updates as the 2027 PATH schedule is confirmed closer to filing season.* ## What Your Transcript Shows While You’re Waiting If your processing date has come and gone with no 846 on your transcript, look for these codes instead: - **[Code 570](https://savingtoinvest.com/what-is-tax-code-tc-570-on-my-irs-transcript-and-will-it-delay-my-refund-account-freeze-or-additional-account-actions-pending/)** — a hold has been placed on your account, often for a discrepancy in reported income or a credit that needs verification. - **Code 971** — the IRS sent you a notice or letter, usually explaining what triggered the hold or requesting more information. - **[Code 420](https://savingtoinvest.com/tax-codes-420-and-424-on-my-irs-transcript-with-notice-cp75-is-my-return-under-audit-and-will-it-delay-my-refund-payment/)** — an examination (audit) has been opened on your return. - **Code 898** — part or all of your refund is being redirected through the Treasury Offset Program to cover a past-due debt like defaulted student loans or back child support. None of these codes mean your refund is gone — they mean the IRS needs to finish something before it can post 846. During PATH season specifically, code 570 showing up right after the hold lifts is common and usually just means your EITC/ACTC verification is still running its course. ## Two Examples for the 2027 Filing Season **Priya** files her 2026 tax return in late January 2027 and claims the EITC. Her transcript shows a processing date of February 23, but by March 1 she still has no 846 — instead, code 570 appeared on February 24. That means her return is under a manual review; she’ll need to wait for either a 971 notice explaining why, or an 846 once the hold clears. **Marcus** files his 2026 return in early February 2027 without any PATH-affected credits. His processing date and his 846 date end up being the same day, because his return sailed through without additional review — a common outcome for simple returns filed outside the EITC/ACTC hold. ## Common Issues to Watch Out For - **Treating the processing date as a guarantee.** It’s an internal IRS estimate, not a commitment — plan around your 846 date instead. - **Panicking at the first sign of code 570 during PATH season.** It’s common while the IRS verifies EITC/ACTC claims and usually resolves within a few weeks; it doesn’t automatically mean an audit. - **Checking your transcript multiple times a day.** Transcripts update on a fixed daily or weekly cycle based on your [cycle code](https://savingtoinvest.com/irs-refund-cycle-code-and-dates-using-tax-transcript-to-get-master-file-information-for-your-direct-deposit-date/) — checking more often just wastes time. - **Confusing your cycle code’s weekly update day with your refund date.** A weekly update (cycle codes ending in 05) tells you when your transcript refreshes, not when you’ll be paid. See [when WMR, IRS2Go, and your transcript actually update](https://savingtoinvest.com/when-does-the-irs-update-my-refund-status-on-wmr-irs2go-and-tax-return-details-on-my-transcript/) for the day-by-day pattern. - **Assuming a PATH-season delay means something was done wrong.** Most of it is routine income/dependent verification, not a sign of a mistake on your return. ## Looking Ahead: 2027 Filing Season The headline change for 2027: because February 15 falls on Presidents Day, the PATH hold on EITC/ACTC refunds lifts on **Tuesday, February 16, 2027** instead of the 15th. Beyond that shift, expect the same basic pattern as every other year — a status-update wave around three to five days after the hold lifts, then a direct-deposit wave following roughly a week to ten days after that for the earliest batch of PATH-affected filers. The IRS typically doesn’t confirm the exact 2027 processing calendar until shortly before the season opens (see the current [IRS refund schedule and direct deposit calendar](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) for the latest confirmed dates as they’re published). If your transcript is showing N/A instead of any of these codes, that usually means your return hasn’t posted to the IRS master file yet — see [what an N/A transcript means](https://savingtoinvest.com/will-ordering-an-irs-tax-transcript-help-me-find-out-when-ill-get-my-refund/) for that specific situation. I’ll publish an updated PATH schedule post once the IRS confirms the 2027 processing calendar in full. Frequently Asked Questions QIs the processing date on my IRS transcript my refund date? ANo. The processing date is the IRS's internal estimate of its next action on your account. Your actual refund date is whatever appears next to transaction code 846 (Refund Issued). QWhen does the PATH Act refund hold lift in 2027? ABy law, the IRS can't issue EITC or ACTC refunds before February 15. Since February 15, 2027 falls on Presidents Day, a federal holiday, the hold lifts on the next business day - Tuesday, February 16, 2027. QHow long after the PATH hold lifts will I actually get my refund? APer current IRS guidance, most early EITC/ACTC filers who e-file with direct deposit and have no other issues should see an updated WMR status by February 21 and receive their refund by March 2. QWhat does it mean if my processing date passed and I still don't have code 846? AIt usually means your return needs additional review. Look for codes 570 (hold), 971 (notice sent), or 420 (examination opened) to understand what's happening. QDoes code 570 during PATH season mean I'm being audited? ANot necessarily. Code 570 is a general hold, often for income or credit verification tied to the EITC/ACTC PATH check. Code 420 specifically indicates an examination (audit) has been opened. QWhy does my transcript only update once a day or once a week? AThe IRS updates transcripts on a fixed cycle tied to your cycle code - daily for some accounts, weekly (usually overnight into Friday) for others. Checking more frequently won't show new information sooner. **Categories:** Taxes and Retirement --- ### [Can't Afford to Pay Your Taxes? Here's What Actually Happens (and Your Options)](https://savingtoinvest.com/cant-afford-to-pay-my-taxes/) **Published:** April 11, 2009 **Author:** Andy **Content:** ### Key Takeaways - New for 2026: the IRS's 'Automatic Exemption from Penalty' (AEP) now waives failure-to-file, failure-to-pay, and failure-to-deposit penalties automatically - no phone call needed - if you filed and paid on time the prior 3 years. - File your return on time even if you can't pay - the failure-to-file penalty (5% per month, up to 25%) is 10 times steeper than the failure-to-pay penalty (0.5% per month), so filing late to 'wait until you can pay' costs you far more. - The IRS's collection notices escalate in a specific, named sequence: CP14 (first balance-due notice), then CP504 (authorizes a state refund seizure), then LT11/Letter 1058 (the final notice that authorizes wage garnishment and bank levies and starts a 30-day appeal window). - The IRS's streamlined installment agreement now covers balances up to $50,000 (combined tax, penalties, and interest), with up to 72 months to pay - no financial disclosure required to qualify. - If you set up a payment plan while your return is filed on time, the failure-to-pay penalty rate drops from 0.5% to just 0.25% per month on the unpaid balance. - An Offer in Compromise lets you settle for less than you owe, but the IRS typically takes 6-12 months to process one and most applications are rejected - it's a last resort, not a first option. - Ignoring the bill is the worst option: unpaid taxes can lead to a federal tax lien (which appears on public records once it hits $10,000) and eventually wage garnishment or levies. Owing more than you can pay is stressful, but the IRS has more structured ways to work with you than most people realize — and the single biggest mistake is letting the fear of the bill stop you from filing at all. Here’s what actually happens when you can’t pay in full, the new automatic penalty relief that just rolled out, and the real options available in 2026. Covered in this Article: [Toggle](#) - [Rule One: File On Time Even If You Can’t Pay](#Rule_One_File_On_Time_Even_If_You_Cant_Pay) - [New for 2026: Penalty Relief Is Now Automatic](#New_for_2026_Penalty_Relief_Is_Now_Automatic) - [What Happens If You Just Don’t Pay](#What_Happens_If_You_Just_Dont_Pay) - [Your Real Options When You Can’t Pay in Full](#Your_Real_Options_When_You_Cant_Pay_in_Full) - [What to Do Right Now If You Owe More Than You Can Pay](#What_to_Do_Right_Now_If_You_Owe_More_Than_You_Can_Pay) ## Rule One: File On Time Even If You Can’t Pay This is the most important thing to understand. The IRS charges two separate penalties, and they are not close to equal: - **Failure-to-file penalty:** 5% of the unpaid tax for each month (or part of a month) your return is late, up to a maximum of 25%. - **Failure-to-pay penalty:** 0.5% of the unpaid tax for each month (or part of a month) it remains unpaid, also capped at 25%. The failure-to-file penalty is ten times steeper than the failure-to-pay penalty. If you skip filing because you can’t pay, you’re choosing the worse financial outcome. File your return (or request a filing extension) by the deadline regardless of whether you can pay anything at all, then deal with the balance separately. **Important nuance:** a filing extension only extends your time to file paperwork — it does not extend your time to pay. If you owe money, interest and the failure-to-pay penalty start accruing from the original due date even if you filed an extension. ## New for 2026: Penalty Relief Is Now Automatic On July 8, 2026, the IRS announced the **Automatic Exemption from Penalty (AEP)**, a new systemic process that replaces the old First-Time Abate (FTA) program. Instead of calling the IRS or submitting a written request, eligible taxpayers now get penalty relief applied automatically during return processing — no action required on your part. **How it works:** if you have a history of timely filing and paying (or filing quarterly returns on time) for the prior 3 years — 12 consecutive quarters for quarterly filers — the IRS won’t assess failure-to-file, failure-to-pay, or failure-to-deposit penalties on an eligible return, and will send you a notice confirming the relief. **What it applies to:** original returns starting with tax year 2025, plus 2026 quarterly returns and future tax periods. It does not cover information returns or one-off filings tied to infrequent events, like estate tax returns (Form 706) or gift tax returns (Form 709). **The transition period:** First-Time Abate is being phased out through the summer of 2026 and will fully hand off to AEP for returns with original due dates on or after January 1, 2027. During this transition, some qualifying taxpayers may still receive a penalty notice before AEP catches up — if that happens to you, you can still call the IRS and request First-Time Abate the old way in the meantime. **What it doesn’t cover:** AEP only waives certain penalties — you still owe the underlying tax and any interest that’s accrued, plus any penalty type that isn’t eligible for automatic relief. If you don’t qualify for AEP (for example, this is your first time owing, or you had a late payment more recently than 3 years ago), you can still request penalty relief under the IRS’s existing “reasonable cause” process. ## What Happens If You Just Don’t Pay If you file but don’t pay, here’s the actual sequence: 1. **You start accruing interest and the failure-to-pay penalty** (0.5% per month) on the unpaid balance from the due date. 2. **The IRS sends a series of notices, starting with CP14** (your first official balance-due notice), requesting payment and escalating in urgency. 3. **If you still don’t pay, CP504 arrives** – “Intent to Levy, Notice of Your Right to a Hearing.” This authorizes the IRS to seize your state tax refund and warns that further enforcement is coming, though it does not yet start a formal appeal clock. If you don’t respond, the next notice is **LT11 (or Letter 1058)**, the actual “Final Notice of Intent to Levy” – this is the one that authorizes wage garnishment and bank levies, and it starts a 30-day window to request a Collection Due Process hearing (Form 12153) before enforcement begins. At that point, the failure-to-pay penalty rate doubles to 1% per month. 4. **A federal tax lien can be filed** once your balance (with penalties and interest) crosses roughly $10,000, which becomes a public record and can affect your credit applications and ability to sell property. 5. **As a last resort, the IRS can levy** — garnish wages, seize bank accounts, or take other assets — though this typically only happens after multiple ignored notices over an extended period, not immediately. The good news: none of this happens overnight, and every step in this sequence is avoidable if you engage with the IRS proactively instead of going silent. ### Decoding the Notice You Just Got: CP14, CP504, and LT11 If you’re reading this because a specific IRS letter just showed up, here’s what each code actually means and how urgent it is: - **CP14** – your first notice of a balance due. Routine, not yet urgent, but don’t ignore it – this starts the clock on everything that follows. - **CP504** – “Intent to Levy, Notice of Your Right to a Hearing.” This is more serious: it authorizes the IRS to take your state tax refund and signals that federal collection action is coming next. It does not yet give you a formal Collection Due Process appeal right. - **LT11 or Letter 1058** – “Final Notice of Intent to Levy and Notice of Your Right to a Hearing.” This is the one that matters most: it’s legally required before the IRS can garnish wages or levy a bank account, and it opens a 30-day window to request a Collection Due Process hearing using Form 12153. Filing that request within 30 days pauses levy action while your case is reviewed. If you’ve received an LT11 or Letter 1058, treat the 30-day window as a hard deadline – it’s the last formal off-ramp before the IRS can start taking money directly from your paycheck or bank account. ## Your Real Options When You Can’t Pay in Full ### 1. Short-Term Payment Plan (180 Days) If you can pay off the balance within 180 days, the IRS offers a short-term plan with no setup fee. You’ll still owe penalties and interest until it’s paid off, but there’s no formal agreement fee to worry about. ### 2. Streamlined Installment Agreement For balances up to **$50,000** in combined tax, penalties, and interest, you can generally qualify for a streamlined long-term installment agreement without submitting a full financial disclosure. You get up to **72 months** to pay it off. Setting this up while your return was filed on time also cuts your failure-to-pay penalty rate in half — from 0.5% to 0.25% per month — for as long as the agreement is in effect. You can apply online through the IRS’s Online Payment Agreement tool for most balances under this threshold. For balances between $25,001 and $50,000, the IRS generally requires direct debit payments (automatic withdrawal from your bank account) rather than mailing checks. ### 3. Non-Streamlined Installment Agreement If you owe more than $50,000, you can still get a payment plan, but you’ll need to submit a Collection Information Statement (Form 433-A or 433-F) detailing your income, expenses, and assets so the IRS can determine what you can reasonably pay each month. ### 4. Offer in Compromise (OIC) An Offer in Compromise lets you settle your tax debt for less than the full amount owed, based on your “reasonable collection potential” — essentially what the IRS believes it could realistically collect from you given your income, expenses, and asset equity. This is genuinely useful for people in real financial hardship, but be realistic about it: - The IRS typically takes **6 to 12 months** to process an application. - Most OIC applications are **rejected** — it’s not a quick or easy way out, and it requires detailed financial documentation. - There’s a non-refundable application fee (with a low-income waiver available) and you generally must include an initial payment with your offer. Treat an OIC as a last resort after exploring installment agreements, not a first move — and be wary of “pennies on the dollar” tax relief ads, since qualifying is far harder than they suggest. ### 5. Temporary “Currently Not Collectible” Status If you’re in genuine financial hardship — paying would prevent you from covering basic living expenses — the IRS can pause collection activity by classifying your account as Currently Not Collectible. This doesn’t erase the debt (interest keeps accruing), but it stops active collection efforts while your situation is reviewed periodically. ## What to Do Right Now If You Owe More Than You Can Pay 1. **File your return on time**, even with a balance you can’t cover, to avoid the much steeper failure-to-file penalty. 2. **Pay whatever you can with the return** — even a partial payment reduces the interest and penalties that accrue on the remainder. 3. **Set up a payment plan immediately** rather than waiting for a notice — the IRS’s online tool takes most people under 15 minutes for balances under $50,000. 4. **Don’t ignore IRS notices.** Every notice has a response deadline, and responding (even just to request more time) keeps your account in good standing and avoids escalation to a levy. 5. **If your income dropped significantly**, check whether you owe an underpayment penalty for missing estimated payments — see [quarterly estimated taxes for freelancers](https://savingtoinvest.com/quarterly-estimated-taxes-this-year-what-freelancers-actually-need-to-know/) if you’re self-employed and this keeps happening year to year. For current tax brackets to double-check your withholding going forward, see the [2026-2027 IRS tax brackets and rates](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/). Frequently Asked Questions QShould I file my taxes if I can't afford to pay? AYes, always. The failure-to-file penalty (5% per month, up to 25%) is ten times steeper than the failure-to-pay penalty (0.5% per month). File on time and deal with the balance separately. QWhat is the Automatic Exemption from Penalty (AEP)? AA new IRS process, announced July 8, 2026, that automatically waives failure-to-file, failure-to-pay, and failure-to-deposit penalties for taxpayers who filed and paid on time for the prior three years. QDo I need to call the IRS to get AEP penalty relief? ANo. If you qualify, the IRS applies AEP automatically during processing and sends you a notice confirming it. If you don't qualify for AEP, you can still request penalty relief manually. QWhat's the difference between a CP504 notice and an LT11 or Letter 1058? ACP504 ('Intent to Levy, Notice of Your Right to a Hearing') authorizes the IRS to seize your state tax refund and warns that more enforcement is coming, but it doesn't yet start a formal appeal clock. LT11 (or Letter 1058), the 'Final Notice of Intent to Levy,' is more serious - it's legally required before the IRS can garnish wages or levy a bank account, and it opens a 30-day window to request a Collection Due Process hearing using Form 12153. If you get an LT11 or Letter 1058, that 30-day window is the last formal step before enforcement can begin. QWhat's the easiest way to set up a payment plan with the IRS? AFor balances up to $50,000, the IRS's streamlined installment agreement requires no financial disclosure and can typically be set up online in under an hour. QDoes setting up a payment plan reduce my penalties? AYes. If you filed on time and set up an installment agreement, the failure-to-pay penalty rate drops from 0.5% to 0.25% per month on the remaining balance. QWhat is an Offer in Compromise and should I use one? AIt lets you settle tax debt for less than you owe based on what the IRS believes it can realistically collect from you. It's a legitimate option for genuine financial hardship, but processing takes 6-12 months and most applications are rejected, so it's a last resort rather than a first move. QWhat happens if I just ignore my tax bill? AInterest and penalties keep accruing, the IRS sends escalating notices (CP14, then CP504, then LT11/Letter 1058), a federal tax lien can be filed once your balance crosses roughly $10,000, and as a last resort the IRS can garnish wages or levy a bank account. **Categories:** Taxes and Retirement **Tags:** extenstion, taxes --- ### [Changes to Your 2026 Medicare Coverage — Plus the 2027 Part B Premium and Part D Outlook](https://savingtoinvest.com/changes-to-your-2026-medicare-coverage/) **Published:** October 15, 2025 **Author:** Andy **Content:** ### Key Takeaways - Medicare Part B in 2026 costs $202.90/month standard - but if your MAGI was above $109,000 (single) or $218,000 (joint) on your 2024 tax return, you're paying more under IRMAA. - IRMAA has 5 income tiers, with total Part B premiums ranging from $284.10 to $689.90/month, plus separate Part D surcharges. - Your 2026 IRMAA is based on your 2024 income - a two-year lookback, not your current income. - If your income dropped due to retirement, divorce, or another qualifying life event, you can appeal using Form SSA-44 without waiting two years for the surcharge to adjust. - The 2026 Part D drug cost cap is $2,100; CMS has already confirmed it rises to $2,400 in 2027, with the deductible rising from $615 to $700 and the base premium rising from $38.99 to $41.33. - The Part D late-enrollment penalty is 1% of that year's national base beneficiary premium per uncovered month, added permanently to your premium - going 63+ days without Part D or other creditable drug coverage triggers it. - Medicare's second round of negotiated drug prices takes effect January 1, 2027 - Ozempic's negotiated price drops to $274/month (from a $959 list price), among 14 other drugs cut 38-85%. - In April 2026, Wellcare disenrolled about 140,000 Part D members for missing premiums as small as $8/month - a reminder to check your autopay setup, since even a tiny unpaid balance can trigger permanent coverage loss and a late-enrollment penalty. Here is a snapshot of the major changes to your 2026 Medicare coverage, primarily driven by the Inflation Reduction Act (IRA). Following the snapshot are details that can help you manage your out-of-pocket health costs and refine your plan benefits. ### Part I: Key Changes to Prescription Drug (Part D) Costs - **Your Drug Costs are Capped:** Starting in 2026, the maximum you will ever have to pay out-of-pocket for covered Part D prescription drugs is set at **$2,100** per year. - **Catastrophic Coverage is Eliminated:** Once you hit that $2,100 limit, you will pay absolutely **$0** for all covered medications for the remainder of the calendar year. - **Negotiated Prices Begin:** The prices for ten of the most expensive prescription drugs will be lowered by Medicare’s new negotiation power, which should translate to reduced copays for you. - **Insulin Stays Affordable:** The cap on your monthly cost for covered insulin products will continue, and the new rules may even drive the cost below the $35 monthly limit in some cases. - **Payment Plan Renewal:** If you use the option to spread your drug expenses across the year, your enrollment in this convenient payment plan will now automatically renew. - **Vaccines Remain Free:** You will continue to receive recommended adult vaccines, such as Shingles and RSV shots, at no cost under your Medicare Part D drug plan. ### Part II: Premiums, Deductibles, and Medicare Advantage Benefits - **Part B Premiums are Rising:** Be prepared for a projected notable increase in your monthly Medicare Part B premium, which covers your essential doctor and outpatient services. - **Part D Deductible Increases:** The maximum deductible for Part D prescription drug plans is going up slightly to $615, meaning you might pay a bit more before your plan coverage starts. - **Medicare Advantage Perks May Shrink:** Some non-health-related “extras” offered by Medicare Advantage plans, like certain allowances for non-healthy food or funeral planning, are being phased out. - **Fewer Plan Choices Available:** The number of stand-alone Part D plans on the market continues to decrease, which makes comparison shopping during Open Enrollment absolutely vital. - **Prior Authorization Expands:** If you use Original Medicare (Parts A & B), be aware that certain services or procedures may now require pre-approval from Medicare before they are covered. - **You Must Compare Plans:** With all these changes, it is more important than ever to review your current plan’s costs and coverage against all new options this Open Enrollment season. --- ## The 7 Critical Medicare Changes Coming in 2026 That Could Save (or Cost) You Thousands It is no longer enough to simply stick with the same plan year after year. The financial rules of the game have fundamentally changed for prescription drugs and overall plan costs. This comprehensive guide breaks down the critical changes you must prepare for right now. ### Your Prescription Drug Revolution: The New $2,100 Cap The most significant change for millions of beneficiaries is the new limit on out-of-pocket prescription drug costs. This is an absolute financial game-changer for those managing chronic or costly illnesses. Starting in 2026, your total annual spending on covered Medicare Part D drugs will be capped at **$2,100**. Once you pay this amount in deductibles, copays, or coinsurance, your cost for covered drugs drops to zero. This new cap brings unprecedented financial predictability to managing high drug costs in retirement. Consider the real-life example of “Marie from Florida.” She previously took a high-cost medication for her rheumatoid arthritis. Before the IRA changes, that medication often cost her upwards of $10,000 per year out-of-pocket. With the new $2,100 cap in place, Marie now has immediate and guaranteed savings of nearly $8,000 every single year. This new limit alleviates a massive financial burden, ensuring she can afford her necessary treatment. The cap applies to all Medicare prescription drug coverage, including both stand-alone Part D and Medicare Advantage plans. This certainty allows for much better financial budgeting and less stress for those living on a fixed income. Knowing your maximum risk upfront is a powerful tool for retirement planning. ### Breakthrough Savings: Medicare’s New Negotiation Power For the first time ever, Medicare has the authority to directly negotiate the prices of certain high-cost drugs. This is a monumental shift that will directly lower your costs at the pharmacy counter. In 2026, the first ten Part D drugs selected for negotiation will have their new, lower prices take effect. These ten medications treat common, serious conditions like cancer, blood clots, and diabetes. This should lead to considerable savings for the millions who rely on these specific brand-name treatments. The law is also providing ongoing financial relief for one of the most common chronic conditions: diabetes. Your cost for a month’s supply of covered insulin products remains capped at $35. In 2026, the rule becomes more flexible, allowing your final cost to potentially drop even lower. This flexibility is based on the new negotiated prices, further protecting your financial stability. If you or your spouse use any high-cost, specialty medication, research if it is on the negotiated drug list. These new government-set prices are designed to flow through to lower your individual copay or coinsurance amount. This represents a massive step forward for affordable access to essential medications across the board. The new structure also simplifies paying for prescriptions throughout the year. The Medicare Prescription Payment Plan allows you to spread out high, upfront costs into twelve manageable monthly payments. Beginning in 2026, your enrollment in this helpful plan will automatically renew unless you choose to opt out. ### The Headwinds: Rising Part B and Part D Costs While the drug cap is fantastic news, not all the financial updates for 2026 are entirely positive. You must also budget for some projected increases to other major components of Medicare. The monthly premium for Medicare Part B is projected to jump significantly in 2026. This premium covers your essential outpatient care, doctor visits, and preventive services. Early estimates suggest a notable hike, which can easily squeeze budgets for those on a fixed monthly income. The maximum deductible for stand-alone Medicare Part D prescription plans is also increasing. It is rising from $590 to $615 in the 2026 plan year. This is the amount you may have to pay before your plan’s coverage benefits officially kick in. For “Robert in Chicago,” a premium increase of over $20 per month adds up quickly when paired with rising grocery and utility costs. Seniors must actively shop for the lowest-cost plans to offset these new monthly expenses. A few dollars saved on a premium each month can translate into hundreds of dollars in annual savings. The overall number of stand-alone Part D plans available in your area may also continue to shrink. Insurers are exiting some markets due to new financial pressures from the IRA changes. This reduced competition means you need to be more diligent than ever during the fall Open Enrollment period. Fewer choices means a greater need for scrutiny when comparing your options. ### Losing Your Part D Plan Over a Missed Premium — Even a Small One Rising premiums created a real problem for some beneficiaries in 2026: losing drug coverage entirely, sometimes over a bill of less than $10. Wellcare terminated coverage for roughly 140,000 of its Value Script Part D members in April 2026, after many of them missed premium payments. For some, the unpaid balance was as small as $8 a month. The root cause is a quiet one. Value Script had been a $0-premium plan for many enrollees across 26 states and DC in 2025. When 2026 premiums rose to a few dollars a month, plenty of longtime members on autopay or paper billing simply didn’t notice the new charge and never paid it. Medicare requires plans to give at least a 2-month grace period before disenrolling someone for nonpayment; Wellcare extended its own grace period to 3 months. Once that window closes, though, the disenrollment is real, no matter how small the unpaid balance was. Losing Part D coverage isn’t just an inconvenience. Go 63 days or more without creditable drug coverage, and you can face a **permanent late-enrollment penalty** added to every future Part D premium — for as long as you have Medicare drug coverage, for life. **If you’ve been disenrolled, you have options.** You can request reinstatement under Medicare’s “Good Cause” policy if you had a legitimate reason for missing the payment — a hospitalization, a billing error, or another documented emergency — by contacting your plan within 60 calendar days of the disenrollment date. Outside that window, you’d need to wait for the next enrollment period and may face the late-enrollment penalty in the meantime. The simplest fix going forward: set up automatic premium withdrawal directly from your bank account or Social Security check, so a small premium increase can’t quietly slip past you. ### Never Had Part D? Should You Enroll Now Just to Avoid the Penalty? A different version of this question comes up constantly: what if you never signed up for Part D at all – because you don’t take many prescriptions, or you’re relying on other coverage – and you’re wondering whether to enroll anyway just to dodge a future penalty? Here’s how the penalty actually gets calculated: it’s 1% of that year’s national base beneficiary premium ($38.99 in 2026), multiplied by the number of full months you went without Part D or other “creditable” drug coverage after your initial enrollment window closed. That amount is rounded to the nearest $0.10 and added to your monthly premium – permanently, for as long as you have Medicare drug coverage, recalculated each year against the new base premium. Go without coverage for, say, 24 months, and you’re looking at a 24% surcharge added to every Part D premium you ever pay afterward. The trigger isn’t just “not having Part D” – it’s going 63 days or more without Part D *or* other creditable prescription drug coverage (many employer and retiree plans qualify as creditable; ask your plan administrator for a notice confirming it). If you have creditable coverage elsewhere, you can delay Part D without ever facing the penalty. If you don’t have creditable coverage anywhere else, enrolling in the cheapest available Part D plan the moment you’re eligible – even one you barely use – locks in your clean enrollment record and avoids a penalty that otherwise compounds for the rest of your life on Medicare. For most people in that position, a low-premium plan now is cheaper over time than a permanent surcharge later. ### The Trade-Offs: Changes to Medicare Advantage Medicare Advantage (MA) plans are popular for offering extra “supplemental benefits” not covered by Original Medicare. These private plans are also seeing significant new regulatory changes in 2026. A new rule in 2026 focuses on Special Supplemental Benefits for the Chronically Ill (SSBCI). This change limits what plans can offer as these specific extra perks. Certain non-health-related benefits will no longer be allowed under this designation. Non-allowable items now explicitly include non-healthy foods, alcohol, tobacco products, and funeral planning. If you relied on your MA plan for a food or grocery allowance, you must check that your specific benefit still qualifies in the new year. Plans are being forced to focus more exclusively on benefits that have a direct health benefit. This means that while the average MA plan premium may hold steady or even slightly decline, the value of the “extras” could decrease. You must look beyond a zero-dollar premium and thoroughly evaluate the specific supplemental benefits you actually use. The lack of a premium is meaningless if you lose a valuable, highly utilized benefit. ### New Administrative Hurdles: Prior Authorization A new policy is being tested in an attempt to cut down on fraud and wasteful spending within Original Medicare. This change will affect millions in specific geographic areas. Original Medicare (Part A and Part B) is starting a six-state prior authorization pilot program. This will require pre-approval from Medicare for certain non-emergency, high-cost medical services or equipment. While the government’s goal is to reduce waste, it could create new administrative hurdles for some beneficiaries. If you live in one of the pilot states, ensure your doctor understands the new approval process before ordering services. A lack of proper authorization could leave you financially responsible for the full cost of a procedure. Staying informed and coordinating with your care providers is your first line of defense. ### Your Essential Action Plan for Open Enrollment With so many changes coming, taking action during the annual Medicare Open Enrollment period is not optional — it is a critical financial necessity. This is your chance to adapt your coverage to the new law. First, check the new $2,100 out-of-pocket cap against your personal prescription spending from the past year. If you spend more than this amount, you are guaranteed a massive reduction in your 2026 costs. This knowledge should fundamentally guide your overall financial budgeting. Next, you must carefully compare the full cost structure of your current plan versus all new options. Look at the monthly premium, the Part D deductible, and the copays for your specific medications. Do not assume your current plan will be the most affordable choice for the new year. Use the official Medicare Plan Finder tool and enter every single one of your medications and dosages. This is the only way to accurately compare how different plans truly cover your specific drug regimen. Think of “Evelyn in Arizona,” who assumed her plan was the best because it offered a free gym membership. When she actually reviewed the costs, a different plan saved her $400 a year on her maintenance drug copay. She could have easily paid for a gym membership with the money she saved on prescriptions. Do not be afraid to switch plans if another option offers a better overall value for your specific needs. Even if you like your current insurer, their plan structure may no longer align with the new Medicare rules. Review your options and make a confident choice to maximize your retirement savings. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) and I’ll flag it as new Medicare figures and rules are finalized.* ### Looking Ahead: The 2027 Part B Premium Outlook The 2026 standard Part B premium is **$202.90/month**, up from $185 in 2025. For 2027, the latest Medicare Trustees Report projects a standard premium of **$209.50** — a $6.60 (3.25%) increase, which would be the smallest percentage move in several years. Take that projection with a grain of salt. The trustees have repeatedly underestimated Part B in recent years, and private forecasters currently project the 2027 premium landing between **$216 and $219**. The official 2027 premium — along with the income-related IRMAA surcharge brackets — will be announced by CMS in **November 2026**. Why it matters: Part B premiums are deducted directly from Social Security checks. The 2027 COLA is currently tracking around 3.8%, or roughly $79/month on the average retirement benefit — so a Part B increase at the high end of forecasts would take back $13–$16 of that raise before it reaches your bank account. See my [Social Security COLA tracker](https://savingtoinvest.com/social-security-tax-and-cost-of-living-adjustment-cola/) for the full net-raise math. I’ll update this page when CMS confirms the official 2027 numbers. ### Looking Ahead: The 2027 Part D Outlook — Higher Cap, But Big Drug-Price Cuts Unlike the Part B premium, several of the 2027 Part D numbers are already locked in rather than projected. CMS finalized the CY 2027 Part D parameters on April 6, 2026: the annual out-of-pocket cap rises from **$2,100 to $2,400**, and the standard deductible rises from **$615 to $700**. CMS’s July 28, 2026 bid release also confirmed the 2027 **national base beneficiary premium at $41.33**, up from $38.99 in 2026 – the figure used to calculate the late-enrollment penalty for anyone without creditable drug coverage. Both changes are built into regulation, not just guidance, so they’re confirmed rather than estimated. The bigger story for 2027 is the second round of Medicare’s drug price negotiations. CMS selected 15 additional high-cost drugs for negotiation back in January 2025 — including the Ozempic/Wegovy/Rybelsus semaglutide family, Trelegy Ellipta, Xtandi, Ibrance, and Janumet, among others — and finalized the negotiated prices in late 2025. Those prices take effect **January 1, 2027**: - **Ozempic:** negotiated price of **$274/month**, down from a $959 list price — roughly a 71% cut. - **Wegovy** (higher-dose): negotiated price of **$385/month**. - Across all 15 drugs, negotiated prices are cut **38% to 85%** off list price, with CMS projecting about $12 billion in aggregate Medicare savings and $685 million in beneficiary out-of-pocket savings if these prices had applied in 2024. The net effect for 2027: if you take one of these 15 drugs, a higher deductible and OOP cap matter far less than the negotiated price cut on the medication itself. If you don’t take any of them, the higher cap and deductible are the more relevant numbers for your personal budgeting. Either way, I’ll update this section once CMS finalizes the full 2027 Part D benefit parameters alongside the Part B premium in November 2026. ### Medicare IRMAA in 2026: How the Income Surcharge Works If your income is above certain thresholds, the $202.90 standard Part B premium isn’t what you’ll actually pay. You’ll owe an extra Income-Related Monthly Adjustment Amount — IRMAA — on top of it, and the surcharge can add hundreds of dollars a month. For 2026, IRMAA kicks in once your modified adjusted gross income (MAGI) exceeds **$109,000** as a single filer or **$218,000** filing jointly. Below that, you pay the standard premium and nothing more. Here’s the full 2026 IRMAA ladder for single filers (married filing jointly thresholds are roughly double): - MAGI $109,000–$137,000: $284.10/month total Part B, plus a $14.50 Part D surcharge - MAGI $137,000–$171,000: $405.80/month total Part B, plus a $37.50 Part D surcharge - MAGI $171,000–$205,000: $527.50/month total Part B, plus a $60.40 Part D surcharge - MAGI $205,000–$500,000: $649.20/month total Part B, plus an $83.30 Part D surcharge - MAGI $500,000 and up: $689.90/month total Part B, plus a $91.00 Part D surcharge One detail that catches people off guard: this is what’s called a cliff surcharge. Go even $1 over a threshold, and you owe the entire next tier’s surcharge — not a prorated amount. If your income is hovering near a bracket edge, that dollar matters. **The two-year lookback that trips people up.** SSA doesn’t use your current income to set your IRMAA — it uses your tax return from two years earlier. Your 2026 premium is based on your 2024 MAGI, the most recent return the IRS has fully processed and shared with SSA by the time premiums are set each fall. That means a one-time income spike from two years ago — a home sale, a large Roth conversion, an unusually good year for capital gains — can hit you with a surcharge in a year when your actual income has already dropped back down. **Diane’s situation is a good example.** She sold a rental property in 2024, which pushed her reported income to $130,000 for that year even though her regular retirement income is much lower. In 2026, her Part B premium isn’t the standard $202.90 — it’s $284.10, plus a $14.50 Part D surcharge, purely because of that one 2024 sale. If your income has genuinely dropped since the year SSA is using — not just fluctuated, but dropped due to a specific event — you don’t have to wait two years for your premium to catch up. You can file [Form SSA-44](https://www.ssa.gov/forms/ssa-44.pdf) to request a reduction based on a “life-changing event”: marriage, divorce or annulment, death of a spouse, work stoppage or reduction, loss of income-producing property, loss of pension income, an employer’s settlement payment or closure, or another event that caused a significant income drop. **Frank retired in early 2025** after a full year of $175,000 income in 2024 — enough to land him in a higher IRMAA tier for 2026 even though he hasn’t earned that much since. He filed Form SSA-44 citing “work stoppage” as his life-changing event and got his premium reduced to the standard $202.90, without waiting until his lower 2025 income shows up in SSA’s system on its own. If you’re still a few years out from Medicare, the most effective way to manage future IRMAA exposure is watching your MAGI in the years leading up to enrollment — timing large [Roth conversions](https://savingtoinvest.com/traditional-ira-versus-roth-ira-contribution-and-phase-out-income-limits/) or property sales so they don’t collide with the two-year lookback window that matters most. ### Conclusion: Stay Informed to Stay Ahead The 2026 Medicare changes represent a complex mix of tremendous savings and unavoidable rising costs. The massive relief provided by the drug spending cap is carefully balanced by higher premiums and, for some beneficiaries, real coverage risk if a premium goes unpaid. The key to successfully navigating this new landscape is knowledge and action. Confirm your autopay is actually set up correctly, know your IRMAA tier, and use the Open Enrollment period to make sure your plan still fits your needs. Review your options during Open Enrollment to ensure your plan is truly working for you in this new era of Medicare. For related reading, see [When to Claim Social Security in 2026: The Real Math for Singles, Couples, and Late Filers](https://savingtoinvest.com/claiming-social-security-benefits-later/) and [Social Security Payment Dates: Schedule by Birth Date](https://savingtoinvest.com/social-security-payment-schedule-by-birth-date/). Frequently Asked Questions QWhat is Medicare IRMAA and who has to pay it? AIRMAA (Income-Related Monthly Adjustment Amount) is a surcharge added to your Medicare Part B and Part D premiums if your income is above certain thresholds, based on your tax return from two years earlier. QHow much more will I pay if I'm subject to IRMAA in 2026? AIt depends on which of the five income tiers you fall into. Total monthly Part B premiums range from $284.10 to $689.90, and Part D surcharges range from about $14.50 to $89.60 on top of your plan's premium. QCan I get my IRMAA surcharge reduced if my income has gone down? AYes. If you've had a qualifying life-changing event - retirement, divorce, death of a spouse, or a similar significant income drop - since the tax year used to calculate your IRMAA, you can file Form SSA-44 to request a recalculation without waiting two years. QWhat happens if I miss a Part D premium payment? AMedicare drug plans must give you at least a 2-month grace period before disenrolling you for nonpayment - Wellcare extended its own to 3 months in 2026. After that window, disenrollment is final, and going 63+ days without coverage can trigger the late-enrollment penalty. QShould I enroll in Part D if I don't take any prescriptions, just to avoid the penalty? AIf you don't have other creditable drug coverage (like an employer or retiree plan), yes - enrolling in even the cheapest available Part D plan during your initial window locks in a clean record. The late-enrollment penalty is 1% of the national base premium per month you go without coverage, added permanently to every future premium, so a low-cost plan now is almost always cheaper than the penalty later. QHow is the Medicare Part D late enrollment penalty calculated? AMultiply 1% by that year's national base beneficiary premium ($38.99 in 2026, $41.33 in 2027), then by the number of full months you went without Part D or other creditable drug coverage after your initial enrollment period ended. The result is rounded to the nearest $0.10 and added to your monthly premium for as long as you have Part D - it's recalculated each year against the new base premium, so it can rise over time even though the number of penalty months stays fixed. QWhat is the Medicare Part D out-of-pocket cap in 2027? ACMS finalized it at $2,400 (up from $2,100 in 2026), with the standard deductible rising from $615 to $700 and the base premium rising to $41.33. Both figures are set in regulation as of the July 28, 2026 bid release. QIs Ozempic getting cheaper on Medicare in 2027? AYes. Medicare negotiated a price of $274/month for Ozempic (down from a $959 list price), effective January 1, 2027, as part of the second round of drug price negotiations. **Categories:** Taxes and Retirement --- ### [Meaning of IRS Codes on WMR Or Tax Transcript For Your Refund Processing and Payment Status](https://savingtoinvest.com/irs-tax-topic-error-codes-on-where-is-my-refund-wmr-and-irs2go/) **Published:** March 10, 2021 **Author:** Andy **Content:** ### Key Takeaways - TC 150 is your filed tax liability; add credits (766, 768, 806) and subtract it to get your net refund - it's very normal for it to show $0. - Tax Topic 152 just means 'still processing' (no action needed); Tax Topic 151 means an adjustment or offset is being applied to your refund. - For 2026-2027, TC 570/971 holds are increasingly driven by OBBBA overtime-deduction verification and Form 1099-DA digital asset cost-basis mismatches. - The pandemic-era pause on student loan refund offsets ended in 2025 - defaulted federal student loan debt can again reduce your refund via Tax Topic 203/Code 898. - TC 846 means your refund is approved and issued; TC 810 means it's frozen pending IRS review. - Reference numbers 1121 and 1242 mean your return is under further review, but only 1242 combined with TC 420 signals an actual audit. - Most codes are informational - the IRS will send a formal notice (TC 971) before anything requiring action from you. I’ve been receiving numerous concerns from readers about the IRS messages and codes appearing when they check their refund status using the Where’s My Refund ([WMR](https://savingtoinvest.com/wmr-and-irs2go-status-differences-return-received-accepted-or-under-review-and-refund-approved-versus-refund-sent/)) tracker, the IRS2Go mobile app, or their free [IRS transcript.](https://savingtoinvest.com/getting-a-free-copy-of-your-irs-tax-return-information-form-4506t-irs-tax-transcript/) Many filers feel stressed and anxious when they see these codes, wondering what they mean, whether they need to take action, and if their IRS refund will be lower than expected. The biggest fear is owing money or facing an [IRS audit](https://savingtoinvest.com/irs-audit-triggers-and-red-flags-for/). Based on what I’ve seen over the last few tax seasons and current IRS guidelines, I’ll break down what these tax topic and transaction codes mean below, with links to full articles on the most common ones. I update this page as new codes surface or the IRS changes how it processes returns — most recently for 2026-2027, where a few new triggers (OBBBA overtime deductions, 1099-DA digital asset reporting) are creating new versions of codes filers have seen before. **[Get the latest money, tax and stimulus news directly in your inbox](https://savingtoinvest.com/subscribe)** Covered in this Article: [Toggle](#) - [Which of the 5 IRS Transcript Types Are You Looking At?](#Which_of_the_5_IRS_Transcript_Types_Are_You_Looking_At) - [What Do IRS Transcript Codes and Tax Topics Mean?](#What_Do_IRS_Transcript_Codes_and_Tax_Topics_Mean) - [Tax Transcript Code 150](#Tax_Transcript_Code_150) - [Code 806 — W2 or 1099 Withholding](#Code_806_%E2%80%94_W2_or_1099_Withholding) - [Tax Topic 151 and 152 — Return and Refund Processing](#Tax_Topic_151_and_152_%E2%80%94_Return_and_Refund_Processing) - [Code 570 — Return Reconciliation Errors (Now Includes OBBBA and 1099-DA Triggers)](#Code_570_%E2%80%94_Return_Reconciliation_Errors_Now_Includes_OBBBA_and_1099-DA_Triggers) - [Tax Topic Codes 203 and 898 — Reduced Refund (Offset by BFS)](#Tax_Topic_Codes_203_and_898_%E2%80%94_Reduced_Refund_Offset_by_BFS) - [Reference Number 9021 — Math Error](#Reference_Number_9021_%E2%80%94_Math_Error) - [Transcript Codes 420, 421 & 424 — IRS Further Examination/Audit](#Transcript_Codes_420_421_424_%E2%80%94_IRS_Further_ExaminationAudit) - [Code 846 Refund of Overpayment — Refund Issued!](#Code_846_Refund_of_Overpayment_%E2%80%94_Refund_Issued) - [Reference Code Number 1121 and 1242 — Return Under Review](#Reference_Code_Number_1121_and_1242_%E2%80%94_Return_Under_Review) - [Tax Topic (and Publication) 971 vs. Code 971 on Your Transcript](#Tax_Topic_and_Publication_971_vs_Code_971_on_Your_Transcript) - [Using Transcript Codes and IRS Cycle Code to Figure Out What’s Going On](#Using_Transcript_Codes_and_IRS_Cycle_Code_to_Figure_Out_Whats_Going_On) - [WMR and IRS2GO Refund Status Error Codes](#WMR_and_IRS2GO_Refund_Status_Error_Codes) ### Which of the 5 IRS Transcript Types Are You Looking At? Before any of the codes below make sense, it helps to know which of the IRS’s five free transcript types you actually pulled — they don’t all cover the same years or show the same information. - **Tax Return Transcript** — shows most line items from your original Form 1040 as filed, plus any forms and schedules, but not changes made after you filed. Covers the current year and 3 prior years. This is the one lenders usually ask for. - **Tax Account Transcript** — shows filing status, taxable income, payment types, and any changes the IRS made after you filed. This is the one that actually shows the transaction codes covered below (150, 570, 846, and so on). Covers the current year and 9 prior years online (3 prior years by phone or mail). - **Record of Account Transcript** — combines the two above into one document. Covers the current year and 3 prior years. - **Wage and Income Transcript** — shows data from W-2s, 1098s, 1099s, and 5498s the IRS has on file (capped around 85 documents, and this year’s data isn’t fully loaded until mid-February). Covers the current year and 9 prior years. - **Verification of Non-Filing Letter** — confirms the IRS has no record of a processed return for that year. Available after June 15 for the current year, or anytime for the prior 3 years. If you’re tracking a refund, pull the **Tax Account Transcript** — that’s the one with the transaction codes this page decodes. If you need income verification for a mortgage or loan, lenders typically want the **Tax Return Transcript** instead. You can order any of these for free through your [IRS Online Account](https://www.irs.gov/payments/online-account-for-individuals). See my [full walkthrough on getting your free IRS transcript](https://savingtoinvest.com/getting-a-free-copy-of-your-irs-tax-return-information-form-4506t-irs-tax-transcript/) for the ID verification steps, plus the phone and mail options. ### What Do IRS Transcript Codes and Tax Topics Mean? You can search the IRS website for each tax topic or transaction code, but it’s not always clear what they mean in practice, and a lot of the official descriptions are generic. Most of these codes are just the IRS’ tax processing system logging what’s happening with your return internally. They tell you why your return is still processing, why your refund is delayed beyond the [normal schedule](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/), which offsets reduced your refund, or why additional IRS verification is needed. Fortunately, most tax and transaction codes (TC) or reference numbers are informational or status updates — the key is to wait and follow the official instructions the IRS sends you. If you want a faster way to make sense of a specific transcript, I also cover how to use [AI tools to read your IRS transcript](https://savingtoinvest.com/using-ai-to-analyze-your-tax-transcript-for-refund-payment-dates/) line by line. ### Tax Transcript Code 150 Transaction **Code 150** — Return Filed & Tax Liability Assessed — is one of the first lines you’ll see on your transcript once your return is accepted by the IRS and added to their master file [cycle](https://savingtoinvest.com/irs-refund-cycle-code-and-dates-using-tax-transcript-to-get-master-file-information-for-your-direct-deposit-date/) for processing. This line represents your liability to the IRS based on your 1040 filing. It does not include refundable credits, which show up separately as codes 766 and 768 (Earned Income Credit / [EITC](https://savingtoinvest.com/earned-income-tax-credit-eitc-qualification-and-income-threshold-limits/)). If the number on the 150 line is **positive**, it means you owe the IRS money. If **negative**, it gets added to your overall refund (or reduces tax owed). It’s also very common for this line to be **$0** — that just means no additional liability beyond withholding, or the return is still under processing. Don’t judge your refund off the 150 line alone. Add your credits (766, 768, 806), subtract the 150 amount, and that equals your net refund. ![Code 150 (tax liability)](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2022/02/image-12.png?resize=482%2C127&ssl=1)Code 150 (tax liability)### Code 806 — W2 or 1099 Withholding As the name suggests, [Code 806](https://savingtoinvest.com/what-does-irs-code-806-mean-on-my-tax-transcript/) shows the federal taxes withheld by your employer or payer during the tax year. It confirms the withheld amount used for your refund or liability calculation. You can dispute this with your employer or 1099 provider if the amount looks wrong. These amounts correspond to your W-2 or 1099. It’s money you already set aside during the year for taxes, and you get back whatever you overpaid. ### Tax Topic 151 and 152 — Return and Refund Processing While TC 150 shows up on your transcript once your return is in the IRS master file, you’ll often see the corresponding [Tax Topic 151 or 152](https://savingtoinvest.com/what-does-irs-tax-topic-code-152-mean-for-my-refund-payment/) on WMR or IRS2Go. **Tax Topic 152** is the catch-all “still processing” message. Most filers see this early in the season, and it requires no action — it just means your return is within the normal processing window (generally 21 days for e-filed returns). **Tax Topic 151** means your return has been pulled for further review or an adjustment/offset is being applied, which may reduce your refund. You’ll get an official IRS letter explaining the adjustment and your appeal rights. The silver lining: the IRS has finished processing your return (TC 150), and any adjusted refund should still be on its way. The topic you really don’t want is **Tax Topic 148**, which flags an IRS fraud alert and identity/fraud review. This significantly delays your refund and requires direct engagement with the IRS to resolve. ![IRS Tax Topic 152](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2022/02/image-7.png?resize=820%2C449&ssl=1)IRS Tax Topic 152 vs 151 vs 150### Code 570 — Return Reconciliation Errors (Now Includes OBBBA and 1099-DA Triggers) **TC 570** is a general hold code and can be caused by many things: mismatched wage reports between what you filed and what your employer reported, missing or incorrect information, or reconciling prior-year IRS debts. For the 2026-2027 filing season, two newer triggers are showing up a lot: the OBBBA “No Tax on Overtime” deduction (the IRS is pausing returns to verify employer-reported overtime hours match what filers claimed) and Form 1099-DA — the first year digital asset brokers were required to issue this form. If your reported crypto cost basis differs even slightly from what your broker reported to the IRS, that basis mismatch is a leading cause of the 570/971 combination this season. In many cases the IRS resolves TC 570 automatically. For more complex situations, they’ll [send you a notice](https://savingtoinvest.com/should-i-be-worried-if-i-get-an-irs-notice-or-letter-will-it-affect-my-tax-return-processing-or-refund-payment/) — so don’t assume the worst. Realize your refund could be delayed since 570 stops payment until the issue clears. You’ll get a **571 notice** (resolved additional account action) once the issue is closed, before a refund is issued. See the [full breakdown of TC 570 and 971](https://savingtoinvest.com/what-is-tax-code-tc-570-on-my-irs-transcript-and-will-it-delay-my-refund-account-freeze-or-additional-account-actions-pending/) for the resolution process and current wait times. ### Tax Topic Codes 203 and 898 — Reduced Refund (Offset by BFS) These references on WMR or your transcript may come up due to an [injured spouse claim](https://savingtoinvest.com/my-stimulus-payment-was-intercepted-for-child-support-arrears-despite-an-injured-spouse-claim/) related to past-due child support, overpaid unemployment, or other tax obligations (federal or state). It’s bittersweet — your return/refund has been processed, but it will be lower than expected or reduced to nothing. You’ll generally see this reflected as code [**826**](https://savingtoinvest.com/irs-tax-transcript-code-826-credit-transferred-out-irs-debt-offset-and-what-it-means-for-your-return-and-refund-processing/) (IRS debt) or **[898](https://savingtoinvest.com/your-tax-refund-has-been-approved-for-direct-deposit-and-transcript-shows-846-with-payment-date-but-why-was-my-refund-adjusted/)** (other offsets) on your transcript. For non-IRS debts, this is run by the Department of Treasury’s Bureau of the Fiscal Service ([BFS](https://fiscal.treasury.gov/top/)). One important update: the pandemic-era pause on offsetting refunds for defaulted federal student loans **ended in 2025** — the Treasury Offset Program resumed collections on defaulted student loan debt, so this is now a live offset category again for 2026-2027 filers, not just child support and state tax debts. The BFS will send an offset notice detailing the amount and agency you owe. You’ll get instructions and an appeal window before any collection. If you successfully appeal, you’ll see a credit on your transcript as **Tax code 766** (Tax Offset Reversal). See the [full details on tax offsets and BFS](https://savingtoinvest.com/irs-refund-adjustments-and-treasury-bfs-offsets-tax-topic-codes-203-598-or-898/). ### Reference Number 9021 — Math Error If you filed a paper return or made manual calculations when e-filing, you may see **reference number 9021**, which means the IRS found math errors and will auto-adjust your return and refund (or taxes due). This code has shown up frequently in recent seasons due to reconciliation issues with advance stimulus payments, the Child Tax Credit, and — more recently — the new OBBBA deductions (overtime, tips) where the reported deduction doesn’t match employer-reported wage data. The IRS generally makes the adjustment automatically before issuing your refund; you can appeal if you disagree. ### Transcript Codes 420, 421 & 424 — IRS Further Examination/Audit A transaction code **420** on your transcript means your return was pulled for a potential audit or further examination. It doesn’t necessarily mean a full audit — just that something got flagged during routine processing. You’ll get an official notice and a request for documentation, which will likely delay your refund. **Code 421** means the audit was closed. **Code 424** means your return was set aside for examination after an initial review (this typically appears before TC 420). See the [full walkthrough of codes 420 and 424 and the CP75 notice](https://savingtoinvest.com/tax-codes-420-and-424-on-my-irs-transcript-with-notice-cp75-is-my-return-under-audit-and-will-it-delay-my-refund-payment/) for what to expect. If your refund is frozen while this plays out, you’ll likely also see [code 810 — Refund Freeze](https://savingtoinvest.com/irs-tax-transcript-code-810-refund-freeze-and-what-it-means/), which stays in place until the IRS resolves the underlying issue. ![Tax Code 420](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2022/02/image.png?resize=820%2C786&ssl=1)Tax Code 420### Code 846 Refund of Overpayment — Refund Issued! This is the code most filers are waiting to see. **TC 846** means the IRS is sending your overpayment — your refund. Getting this on your transcript confirms your refund was approved and issued. See the [full breakdown of code 846 and your direct deposit date](https://savingtoinvest.com/code-846-refund-issued-on-your-irs-tax-transcript-what-it-means-for-your-direct-deposit-or-paper-check-refund-payment/). If your banking information is incorrect and your refund is rejected, you’ll still see 846 followed by [codes 841 and 971](https://savingtoinvest.com/irs-tax-transcript-code-841-refund-cancelled-due-to-direct-deposit-rejection-paper-check-on-the-way/) — a paper check gets mailed 4 to 6 weeks after the IRS is notified of the bounced payment. ![Tax Transcript Code 846 - Refund issued](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2022/02/image-8.png?resize=820%2C462&ssl=1)Tax Transcript Code 846 – Refund issued### Reference Code Number 1121 and 1242 — Return Under Review Reference Number 1121 generally means your tax return is under further review by the IRS, with your account frozen (transcript code 810) until the review completes. This may or may not result in a formal audit — that would be reference number **1242**, which I cover in [more detail here](https://savingtoinvest.com/does-irs-reference-code-1242-mean-i-am-getting-audited-will-my-refund-be-delayed/). You may see the “Return Processing Has Been Delayed Beyond The Normal Timeframe” message on WMR when this shows on your transcript. There’s not much you can do beyond waiting for the review and responding to any formal notices (like a [CP05](https://savingtoinvest.com/what-is-a-cp05-tax-notice-and-should-i-worry-when-i-get-this-letter-from-the-irs-around-my-tax-return-and-refund-payment/)). ### Tax Topic (and Publication) 971 vs. Code 971 on Your Transcript The 971 tax topic covers spousal tax treatments under IRS Publication 971 — innocent spouse relief, separation of liability, or bankruptcy discharge of a joint tax liability. Seeing this is generally a good outcome for the spouse being relieved of shared tax debt. Separately, the **971 code on your transcript** simply means the IRS issued you a [notice or letter](https://savingtoinvest.com/should-i-be-worried-if-i-get-an-irs-notice-or-letter-will-it-affect-my-tax-return-processing-or-refund-payment/) after an adjustment or review. Don’t confuse the two — the transcript code is far more common and just means “a letter is coming.” ### Using Transcript Codes and IRS Cycle Code to Figure Out What’s Going On The codes above tell you *what* happened, but not always *when*. That’s where your [IRS master file cycle code](https://savingtoinvest.com/irs-refund-cycle-code-and-dates-using-tax-transcript-to-get-master-file-information-for-your-direct-deposit-date/) helps — it shows your processing stage and potential direct deposit date. If you see an **846 code** with a date and amount for the current tax season, your refund is on its way. If you see other codes like 570, 898, 420, or 971 with future dates or $0 amounts and no current-year 846, your return is still under processing or being adjusted. If you’d rather not manually track down what a combination of codes means, I walk through [using AI tools to read your transcript](https://savingtoinvest.com/using-ai-to-analyze-your-tax-transcript-for-refund-payment-dates/) for a faster read on your specific situation. ### WMR and IRS2GO Refund Status Error Codes When WMR or IRS2Go shows an error, you’ll get a code and short description. Sometimes this tells you the cause (e.g. **1161** — refund delayed, bankruptcy on account). In many cases it doesn’t help much, and you should reference the [IRS Refund Error Code list](https://www.irs.gov/irm/part21/irm_21-004-001r) for more detail. It can be frustrating to see ongoing delays. My advice: be patient, work through the sections above, and contact a [tax advocate](https://savingtoinvest.com/contact-a-tax-advocate-to-help-get-your-refund-released-from-the-irs/) or tax professional if you get nowhere with the IRS directly. *Note: This article is for informational purposes only. Consult a tax professional or [call the IRS](https://savingtoinvest.com/how-can-i-actually-speak-to-a-real-person-or-agent-at-the-irs-phone-numbers-that-work/) for your specific situation.* Frequently Asked Questions QWhat is the most common IRS transcript code? ATC 150 (Return Filed & Tax Liability Assessed) appears on every processed return. Among 'action' codes, TC 570 (additional review) and TC 846 (refund issued) are the two you'll see most. QDoes Code 570 mean I'm being audited? ANo. TC 570 just means your return needs additional review before your refund releases - it's usually resolved automatically within a few weeks. An actual audit shows up as TC 420 or 424. QWhy did my refund get reduced this year even though I don't owe the IRS anything? ACheck for Tax Topic 203 or Code 898/826 on your transcript - this means a non-IRS debt (child support, state debt, or a resumed defaulted student loan) was offset against your refund by the Treasury's BFS. QWhat does it mean if I see Code 971 on my transcript? AIt means the IRS sent you a formal notice or letter, usually explaining an adjustment, hold, or request for more information. Check your mail (and IRS online account) for the actual letter. QHow do I know when my refund will actually arrive? ALook for TC 846 on your transcript with a date for the current tax year - that's your refund issue date, and payment typically lands within a couple of days of it. Your IRS cycle code also gives a sense of your weekly or daily processing schedule. **Categories:** Government Rebates and Payments --- ### [Student Loan Default Can Now Take 15% of Your Social Security Check — Here's How to Stop It](https://savingtoinvest.com/student-loan-social-security-garnishment/) **Published:** July 30, 2026 **Author:** Andy **Content:** ### Key Takeaways - If your federal student loans are in default, the Treasury Offset Program can garnish up to 15% of your monthly Social Security check - retirement, survivor, or SSDI benefits. - A $750-per-month floor protects you: SSA cannot reduce your check below $750, regardless of what 15% would otherwise take. - Roughly 452,000 Social Security recipients are in default on federal student loans and would be at risk if collections resume, many of them retirees living on fixed incomes. - Collections have been paused since January 2026 while the Department of Education rolled out the new RAP repayment plan (launched July 1, 2026) - as of this writing, no restart date has been announced, though the pause could end without much notice. - In August 2026, Senators Sanders, Warren, and Markey introduced a bill (the Stop Social Security Garnishment Act) that would permanently ban this kind of offset - it has not passed, so it does not change anything yet. - Loan rehabilitation (nine on-time monthly payments within ten months) removes default status entirely and stops any future garnishment - this is the single most effective fix for most borrowers. - This is separate from tax refund offsets, which is a different collection tool the Treasury Offset Program also uses against defaulted federal student loan borrowers. If you’re behind on federal student loans and collecting Social Security, here’s the number that matters: **15%**. That’s how much of your monthly benefit the government can legally take through the[ Treasury Offset Program ](https://savingtoinvest.com/irs-tax-transcript-code-826-credit-transferred-out-irs-debt-offset-and-what-it-means-for-your-return-and-refund-processing/ "IRS Tax Transcript Code 826 Credit Transferred Out – IRS Debt Offset and Smaller Refund")if your loans are in default — down to a floor of $750 a month, but not a penny less. Right now, though, these collections are paused — see the current status below before you assume this is actively happening to you. This isn’t new machinery. It’s an old collection tool that got paused for several years — and while it’s paused again right now, the Department of Education hasn’t ruled out restarting it with little notice, which is exactly what catches a lot of older borrowers off guard, many of whom took out loans decades ago, sometimes for a child’s education, and assumed the debt had quietly gone away. Here’s exactly how the garnishment works, who’s actually exempt, and the fastest ways to stop it before it starts. Covered in this Article: [Toggle](#) - [Why This Is Happening Now](#Why_This_Is_Happening_Now) - [How the 15% Garnishment Actually Works](#How_the_15_Garnishment_Actually_Works) - [This Is Different From a Tax Refund Offset](#This_Is_Different_From_a_Tax_Refund_Offset) - [Who’s Actually at Risk](#Whos_Actually_at_Risk) - [Three Ways to Stop the Garnishment](#Three_Ways_to_Stop_the_Garnishment) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) ## Why This Is Happening Now Federal student loan collections — including wage garnishment and Treasury offsets against tax refunds and Social Security — were paused for extended stretches during the pandemic and again in early 2026 while the Department of Education rolled out a new repayment system. That new system, called **RAP (Repayment Assistance Plan)**, launched July 1, 2026, replacing several older income-driven repayment plans with a single option: 1% to 10% of adjusted gross income, a $10/month minimum, and eventual forgiveness after 30 years. Despite that launch, the Department of Education has **not** restarted involuntary collections as of this writing — wage garnishment, tax refund offsets, and Social Security offsets are all still paused under the delay ED announced in January 2026, with no restart date published. In August 2026, Senators Bernie Sanders, Elizabeth Warren, and Ed Markey introduced the Stop Social Security Garnishment Act, which would permanently ban Social Security offsets for defaulted student loans if it passes — a sign of how live this issue still is even without active collections happening right now. An estimated **452,000 Social Security recipients** are currently in default on federal student loans and within reach of this garnishment. Many are retirees on fixed incomes whose original loans — their own, or loans they co-signed or took out as a Parent PLUS borrower for a child’s education — went unpaid for years. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) — I’ll update this page as the Department of Education confirms exact restart dates for Social Security offsets specifically.* ## How the 15% Garnishment Actually Works The Treasury Offset Program (TOP) is the mechanism. If your federal student loan is in default, the Department of Education can refer your debt to TOP, which then directs SSA to withhold a portion of your monthly benefit before it’s paid to you. The math: **up to 15% of your gross monthly Social Security benefit**, but SSA can never reduce your check below **$750 a month**, regardless of what 15% would otherwise calculate to. **Example — Harold**, 70, receives $1,600 a month in Social Security retirement benefits and has a defaulted federal student loan from a graduate program he never finished in the 1990s. Fifteen percent of $1,600 is $240, so his check would be reduced to $1,360 — well above the $750 floor, so the full 15% applies. **Example — Patricia**, 67, receives $820 a month in Social Security. Fifteen percent of $820 is $123, which would normally reduce her check to $697 — but that’s below the $750 floor. Instead, her garnishment is capped so her check never drops under $750, meaning she keeps $750 and only $70 is withheld that month, not the full $123. ## This Is Different From a Tax Refund Offset It’s worth separating two things that get confused constantly. **Tax refund offsets** intercept your federal tax refund entirely (or partially) to cover defaulted student loan debt — a one-time, once-a-year hit tied to filing season. **Social Security garnishment** is an ongoing monthly reduction to your benefit check, hitting you every single month until the debt is resolved. Both tools fall under the Treasury Offset Program and can apply to the same defaulted loan simultaneously — a refund offset one April and a reduced Social Security check every month of that same year aren’t mutually exclusive. ## Who’s Actually at Risk This only applies to **federal** student loans that are in **default** — generally meaning no payment has been made in 270 days or more. It does not apply to: - Loans that are current, in deferment, or in forbearance - Loans in an active income-driven repayment plan, including the new RAP - **Private** student loans, which cannot be collected through Treasury offset at all — private lenders have to sue you and get a court judgment to garnish Social Security, and even then, Social Security benefits are generally protected from private creditor garnishment - SSI (Supplemental Security Income) — SSI is need-based and is **not** subject to Treasury offset for student loan debt, unlike SSDI and retirement benefits ## Three Ways to Stop the Garnishment **1. Loan rehabilitation.** This is the most direct fix for most people. Make nine on-time monthly payments within a 10-month window, and your loan comes out of default entirely — garnishment stops, and the default is removed from your credit report. Payments under rehabilitation are typically calculated based on your income and can be quite low. **2. Total and Permanent Disability (TPD) discharge.** If you’re receiving SSDI or another disability determination, you may qualify to have your federal student loans discharged entirely through the TPD program, eliminating the debt (and the garnishment risk) altogether. The Department of Education can sometimes identify TPD-eligible borrowers automatically through a data match with SSA, but it’s worth applying proactively rather than waiting. **3. Financial hardship objection.** Before an offset starts, you’re entitled to a hearing where you can object based on financial hardship. If you can show the garnishment would leave you unable to cover basic living expenses, you may be able to get the offset reduced or delayed — though this route is more limited than rehabilitation and typically doesn’t erase the underlying debt. **Example — Gloria**, 66, defaulted on a Parent PLUS loan she took out for her daughter’s college in the 2000s. After getting a garnishment notice in mid-2026, she enrolled in loan rehabilitation with a $25/month payment based on her limited income. Nine months later, her loan was out of default, and the Social Security offset stopped entirely — with no lump-sum payment required. ## Common Issues to Watch Out For A few things I see trip people up on this topic specifically. **Assuming an old loan “expired.”** Federal student loan debt does not have a statute of limitations the way most consumer debt does. A loan from the 1990s that was never paid off is just as collectible today as it was then. **Confusing this with private loan collection.** Private lenders have far more limited power to reach Social Security. If your loan is private, this garnishment mechanism doesn’t apply — though private lenders can pursue other collection routes. **Not responding to the pre-offset notice.** Before garnishment starts, the Department of Education is required to send a notice giving you the chance to request a hearing or set up a repayment arrangement. Ignoring that notice is what typically leads directly to the offset starting. **Overlooking Parent PLUS loans.** A lot of the retirees at risk here didn’t borrow for their own education — they co-signed or took out Parent PLUS loans decades ago for their kids. If that debt was never fully repaid, it’s just as subject to this garnishment as a personal loan. **Assuming SSI is at risk.** SSI is protected from this kind of offset. If you’re only receiving SSI (not SSDI or retirement benefits), student loan garnishment through the Treasury Offset Program doesn’t apply to you. ## Looking Ahead: 2027 Outlook The Department of Education hasn’t published a single firm restart date for Social Security offsets specifically — many expected the July 1, 2026 RAP launch to be the trigger, but as of this writing collections remain paused with no announced timeline. I’m watching whether the Stop Social Security Garnishment Act (introduced by Sanders, Warren, and Markey in August 2026) gains any traction, since a permanent ban would change this picture entirely if it passed. I’m also watching whether Congress revisits the $750 protection floor, since advocacy groups have pushed for a higher threshold given how much the cost of living has risen since that number was last set, and whether SSA and the Department of Education expand automatic TPD discharge matching, which could reduce how many disabled borrowers get caught in this process unnecessarily. I’ll update this page the moment collections actually restart. Frequently Asked Questions QCan Social Security be garnished for defaulted student loans? AYes, legally. Through the Treasury Offset Program, the Department of Education can garnish up to 15% of your monthly Social Security retirement, survivor, or SSDI benefit if your federal student loan is in default, with a $750 monthly floor protecting the rest. As of this writing, though, these collections are paused - see below for the current status. QIs there a minimum amount of Social Security I'm guaranteed to keep? AYes. SSA cannot reduce your monthly check below $750, no matter what 15% of your benefit would otherwise calculate to. QDoes this apply to SSI or private student loans? ANo. SSI is need-based and protected from Treasury offset for student loans. Private student loans also cannot be collected through this program - private lenders must sue and obtain a court judgment, and Social Security benefits are generally protected from private creditor garnishment even then. QHow can I stop a Social Security garnishment for a defaulted student loan? AThe most direct route is loan rehabilitation - nine on-time monthly payments within 10 months removes the default entirely. You may also qualify for Total and Permanent Disability discharge if you receive SSDI, or you can request a hearing to object based on financial hardship. QAre Social Security offsets for student loans currently happening in 2026? ANo - as of this writing, they are still paused. The Department of Education delayed all involuntary collections, including Social Security offsets, starting in January 2026 while it rolled out the new RAP repayment plan (which launched July 1, 2026). No restart date has been published, though the Department has not ruled one out. I'll update this page as soon as that changes. QIs Social Security garnishment for student loans the same as a tax refund offset? ANo, though both use the Treasury Offset Program. A tax refund offset is a one-time interception of your refund at filing time. Social Security garnishment is an ongoing monthly reduction to your benefit check that would continue until the default is resolved, if and when collections restart. QWhat if my student loan is a Parent PLUS loan I took out for my child? AIt's treated the same as any other defaulted federal student loan. Parent PLUS loans are fully subject to Treasury offset against the borrowing parent's Social Security benefits if they go into default and collections are active. **Categories:** Taxes and Retirement --- ### [Will SNAP Get Cut Off After September 30, 2026? What's Actually Different This Time](https://savingtoinvest.com/snap-shutdown-funding-risk-2026/) **Published:** July 28, 2026 **Author:** Andy **Content:** ### Key Takeaways - SNAP and WIC are funded through September 30, 2026 - the end of the federal fiscal year - thanks to a full-year appropriation Congress secured after the chaos of the 2025 shutdown. - That October 1-November 12, 2025 shutdown was the longest in modern history, and SNAP got caught in a legal fight over whether contingency reserves could cover November benefits - some states paid 65%, some paid nothing, until it ended. - Two competing stopgap bills are now in play: the House's H.R. 9770 (passed July 21, 2026, funds through December 4) and the Senate's own version (advanced August 3, 2026 on an 89-4 cloture vote, funds through December 11) - both still need to pass the other chamber and be signed into law before September 30. - The House already left for its August recess and won't return until early September, so the two chambers haven't yet reconciled the December 4 vs. December 11 dates. - If no funding bill is signed into law by October 1, 2026, SNAP's dedicated appropriation lapses and the program could face the same contingency-fund dispute that caused disruption last November. - A government shutdown doesn't automatically cancel SNAP - the real question is always which pot of money is legally available to pay it, and for how long. - This is separate from the October 1, 2026 change to SNAP's federal-state administrative cost-share, which is a permanent funding-formula change, not a shutdown-related risk. If you get SNAP, the date to actually watch this year is October 1, 2026 — not because benefits are guaranteed to stop, but because that’s when the current funding that’s protected SNAP all year runs out. Here’s what happened last time this played out badly, what’s genuinely different heading into this deadline, and what to actually watch for. Covered in this Article: [Toggle](#) - [Where Things Stand Right Now](#Where_Things_Stand_Right_Now) - [What Happened Last Time: October–November 2025](#What_Happened_Last_Time_October%E2%80%93November_2025) - [What’s Different Heading Into This Fall](#Whats_Different_Heading_Into_This_Fall) - [The Senate Has Its Own Competing Bill Now](#The_Senate_Has_Its_Own_Competing_Bill_Now) - [What About WIC’s Fruit and Vegetable Benefit?](#What_About_WICs_Fruit_and_Vegetable_Benefit) - [What Happens If Nothing Passes by October 1](#What_Happens_If_Nothing_Passes_by_October_1) - [What to Actually Watch For](#What_to_Actually_Watch_For) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: What to Watch This Fall](#Looking_Ahead_What_to_Watch_This_Fall) ## Where Things Stand Right Now SNAP and WIC are both funded through the end of September 2026 under a full-year appropriation Congress passed after the fall 2025 shutdown. That’s why a brief funding lapse in late January 2026 didn’t touch SNAP payments at all — the program simply wasn’t part of that fight. If you got your February 2026 deposit on time, that’s why. ## What Happened Last Time: October–November 2025 The government shutdown that began October 1, 2025 and ran through November 12 was the longest in modern history. Unlike this year, SNAP had no dedicated funding cushion in place when it hit — its FY2026 appropriation hadn’t been enacted yet. USDA initially said its roughly $5–6 billion contingency reserve could be used to keep November SNAP benefits flowing. It then reversed that position, arguing the reserve wasn’t legally available for regular monthly benefits once the underlying appropriation had lapsed. Multiple federal judges ordered the administration to pay out — first around 65% of normal benefits, then in full — before the Supreme Court paused the full-payment order. The result was genuinely chaotic: some states managed to get full or partial SNAP payments out to recipients, others didn’t, and the dispute wasn’t resolved until Congress passed a bill reopening the government and replenishing SNAP funding. ## What’s Different Heading Into This Fall Congress built in a fix after that: SNAP and WIC now have their own full-year appropriation running through September 30, 2026, insulated from any shutdown fight over the rest of this fiscal year. That’s a real, structural change — not a promise, an already-enacted funding stream. The open question is what happens after September 30. On July 21, 2026, the House passed [H.R. 9770](https://www.congress.gov/bill/119th-congress/house-bill/9770), the Continuing Appropriations Act, 2027, a stopgap bill that would fund the government — including SNAP in its current form — through December 4, 2026, or until full-year FY2027 appropriations pass, whichever comes first. As of this writing, it still needs Senate passage and the president’s signature to become law; a House vote alone doesn’t fund anything. ## The Senate Has Its Own Competing Bill Now On August 3, 2026, the [Senate advanced a second stopgap funding bill](https://thehill.com/homenews/senate/6006917-senate-advances-stopgap-funding-bill/) — separate from the House’s H.R. 9770 — on an 89-4 cloture vote. Written by Appropriations Committee leaders Sen. Susan Collins (R-ME) and Sen. Patty Murray (D-WA), this version would fund the government, including SNAP, at current levels through **December 11, 2026** — about a week later than the House’s December 4 date. Senate leaders are pushing to pass it this week, before the chamber leaves for its August recess, with an eye toward avoiding a shutdown fight during the run-up to the 2026 midterm elections. The catch: a Senate bill isn’t law by itself. The House already left Washington for its own August recess and isn’t scheduled back until early September, so the two chambers haven’t yet reconciled the December 4 vs. December 11 dates — or any other differences between the bills. Whichever version (or compromise) eventually passes both chambers and gets signed is what will actually keep SNAP funded past September 30. *This is a fast-moving story — [subscribe here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) and I’ll update this page as the House and Senate act and the September 30 deadline approaches.* ## What About WIC’s Fruit and Vegetable Benefit? WIC’s core funding for this fiscal year is secure — it’s covered by the same full-year appropriation protecting SNAP through September 30, 2026. But WIC faces a different kind of risk that has nothing to do with the shutdown timeline above: a proposed cut to the size of one specific benefit, working its way through the FY2027 agriculture appropriations bill in the House. That bill would cut WIC’s Cash Value Benefit — the fruit-and-vegetable allowance loaded onto WIC cards each month — from **$52 to $13 a month for breastfeeding mothers**, and from **$26 to $10 a month for young children**. The National WIC Association and the Center on Budget and Policy Priorities estimate the change would affect roughly 5.4 million participants nationwide. This is a proposal, not enacted law — it’s a separate fight from the stopgap bills covered above, and it’s about the size of a specific benefit rather than whether WIC gets funded at all. ## What Happens If Nothing Passes by October 1 If neither a continuing resolution nor full FY2027 appropriations are signed into law by October 1, 2026, SNAP’s current dedicated funding lapses, and the program would be back in roughly the same legal gray zone that caused the November 2025 disruption — an argument over whether contingency funds can cover regular benefits, likely to end up in court again rather than resolved cleanly on day one. That’s meaningfully different from a benefit being permanently cut. A shutdown-driven funding lapse is a temporary, resolvable dispute over which account pays the bill; it isn’t the same as a change to who qualifies or how much SNAP pays, the way [SNAP’s other 2026 changes](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/) — like new work requirements or state-by-state benefit amounts — actually work. It’s also separate from the October 1, 2026 shift in how much of SNAP’s administrative costs the federal government versus states cover, which is a permanent funding-formula change unrelated to appropriations lapses. ## What to Actually Watch For Keep an eye on how the House and Senate reconcile their two competing stopgap bills — H.R. 9770’s December 4 date versus the Senate’s December 11 version — as September 30 approaches; that reconciliation matters more than any individual news headline about “government shutdown.” Your EBT card keeps working exactly as long as there’s money loaded on it and [SNAP is funded](https://www.fns.usda.gov/snap/recipient/eligibility); a lapse doesn’t erase existing balances. If a lapse does happen, expect state agencies and USDA to communicate directly about any payment timing changes, the same way they did in fall 2025. This whole cycle also intersects with the same congressional brinkmanship driving other fights this year — including the [debt ceiling timeline](https://savingtoinvest.com/will-the-debt-ceiling-be-raised-and-whose-to-blame-for-this-mess-republicans-or-democrats/) I’ve been tracking separately. Federal employees are affected by these funding fights too, sometimes more directly than benefit recipients — see my [federal pay guide](https://savingtoinvest.com/federal-employee-gs-pay-chart-and-raise/) for how furloughs and back pay work on that side. And to be clear, there’s still no new federal stimulus check tied to any of this — see my [2026 stimulus check update](https://savingtoinvest.com/direct-cash-payments-to-americans-in-stimulus-package/) if you’ve seen rumors conflating the two. ## Common Issues to Watch Out For **Assuming any shutdown automatically stops SNAP.** It didn’t in January 2026, because SNAP had its own funding. Whether a future shutdown affects SNAP depends entirely on whether SNAP-specific funding is in place at that moment. **Confusing this with SNAP’s other 2026 changes.** The administrative cost-share shift, work requirement changes, and state benefit amounts are separate, already-enacted policy changes — not shutdown risks. **Panicking before there’s an actual lapse.** As of this writing, SNAP funding runs through September 30 regardless of what happens with either stopgap bill in the meantime. **Not knowing your EBT balance is safe.** Money already loaded on your card doesn’t disappear during a shutdown — only the timing of new deposits is ever in question. **Assuming either chamber’s vote means a bill is law.** Both the House’s H.R. 9770 (passed July 21) and the Senate’s competing bill (advanced August 3) still need to pass the *other* chamber in matching form and get a presidential signature before either is actually law. **Believing a cashier who says “EBT isn’t being accepted because of the shutdown.”** This comes up in every funding scare, including the brief January 2026 lapse — and it’s almost never actually true. SNAP funding status and an individual store’s EBT terminal are two separate things; a store can have a system outage or an undertrained cashier that has nothing to do with Congress. Check your balance directly through your state’s EBT app or the customer service number on the back of your card before assuming your benefits are gone, and report the store to your state SNAP office if a clerk keeps insisting otherwise — incorrect refusals like this can leave someone without groceries over a mistake that isn’t even about SNAP funding. ## Looking Ahead: What to Watch This Fall The real test is now whether the House and Senate reconcile their two competing stopgap bills — the House’s H.R. 9770 (through December 4) and the Senate’s newer version (through December 11, advanced August 3 on an 89-4 vote) — into one bill that passes both chambers and gets signed before September 30. If that happens cleanly, this fall should look nothing like November 2025. If it doesn’t, expect the same contingency-fund legal fight to resurface almost immediately. I’ll update this page as Congress acts. Frequently Asked Questions QIs SNAP funded through September 30, 2026? AYes. SNAP and WIC have a dedicated full-year appropriation that Congress passed after the 2025 shutdown, covering benefits through the end of fiscal year 2026 on September 30. QWhat happened to SNAP during the 2025 government shutdown? AThe shutdown ran from October 1 to November 12, 2025. SNAP had no dedicated funding cushion at the time, and a legal dispute over whether contingency reserves could cover November benefits led to some states paying partial or no benefits until the shutdown ended. QCould SNAP be affected by a shutdown after October 1, 2026? APotentially, if Congress doesn't pass a new funding bill by then. Two competing stopgap bills are in play: the House's H.R. 9770 (passed July 21, funds through December 4) and the Senate's own version (advanced August 3 on an 89-4 vote, funds through December 11). Both still need to pass the other chamber and get the president's signature before September 30. QWhat's the difference between the House and Senate funding bills? AMainly the end date. The House's H.R. 9770 would fund the government, including SNAP, through December 4, 2026. The Senate's competing bill, advanced August 3, 2026 on an 89-4 cloture vote, would fund it through December 11. Both chambers need to agree on a single version before either can become law. QDoes a government shutdown cancel my SNAP benefits immediately? ANo. A shutdown affects whether new deposits can be issued, not the balance already on your EBT card, which remains usable until spent. QIs this the same as the SNAP administrative cost-share change on October 1, 2026? ANo. That's a separate, permanent change to how SNAP's administrative costs are split between the federal government and states - unrelated to appropriations lapses or shutdown risk. QIs there a new stimulus check related to this? ANo. There's no new federal stimulus payment tied to SNAP funding or any 2026 shutdown discussion. QA cashier told me my EBT card isn't being accepted because of the shutdown - is that true? AAlmost certainly not. SNAP funding status and a single store's ability to process EBT are unrelated - a refusal is far more likely a store-level system issue or an undertrained cashier repeating something they heard, not an actual funding lapse. Check your balance through your state's EBT app or the phone number on your card, and if a store keeps refusing, report it to your state SNAP office. **Categories:** Taxes and Retirement --- ### [How to Pay Off or Negotiate Down Credit Card Debt in 2026](https://savingtoinvest.com/negotiating-down-your-credit-card-debt/) **Published:** June 18, 2009 **Author:** Andy **Content:** ### Key Takeaways - Always pay more than the minimum - paying only the minimum on a 21%+ APR balance can take years to pay off and multiplies your total interest cost several times over - The 'avalanche' method (highest interest rate first) saves the most money; the 'snowball' method (smallest balance first) tends to keep people motivated longer - either beats no plan at all - Nonprofit credit counseling agencies can often negotiate your rate down to single digits through a debt management plan, typically over five years or less - Card issuers increasingly settle delinquent debt for 40-70 cents on the dollar rather than risk a total loss to bankruptcy - but settling seriously damages your credit and isn't the first move for most people - A debt settlement generally requires being significantly behind already; if you're current on payments, a lower-interest option (0% balance transfer, personal loan, or DMP) almost always beats settlement The average American household carrying a credit card balance owes around $10,870 on it, at an average APR above 21%. That combination — a five-figure balance at a rate that’s roughly triple a mortgage — is exactly why credit card debt deserves a real plan, not just “pay more than the minimum.” There isn’t one right way out. Depending on how far behind you are, the right move ranges from a simple payoff strategy to a formal negotiation with your card issuer. Here’s how to figure out which one applies to you. Covered in this Article: [Toggle](#) - [Rule One: Always Pay More Than the Minimum](#Rule_One_Always_Pay_More_Than_the_Minimum) - [Avalanche vs. Snowball: Which Payoff Order Wins](#Avalanche_vs_Snowball_Which_Payoff_Order_Wins) - [Cut Off New Charges While You Pay Down Old Ones](#Cut_Off_New_Charges_While_You_Pay_Down_Old_Ones) - [Nonprofit Debt Management Plans](#Nonprofit_Debt_Management_Plans) - [When Settling for Less Makes Sense](#When_Settling_for_Less_Makes_Sense) - [A Realistic Example](#A_Realistic_Example) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## Rule One: Always Pay More Than the Minimum If you pay just the minimum on a credit card balance, you’re mostly paying interest — it can take years to make a real dent in the principal, and the total interest you pay can end up multiplying the original balance. Even an extra $20-$50 a month above the minimum meaningfully shortens the payoff timeline. ## Avalanche vs. Snowball: Which Payoff Order Wins If you’re carrying balances on more than one card, the order you pay them down in matters. **The avalanche method**: pay the minimum on every card, then put every extra dollar toward the card with the *highest interest rate* first. This minimizes total interest paid and is mathematically the cheapest way out. **The snowball method**: pay the minimum on every card, then put every extra dollar toward the card with the *smallest balance* first, regardless of rate. It costs slightly more in total interest, but the faster wins (fully paying off a card) keep a lot of people more consistent over time. Neither is wrong. If you’re confident you’ll stick with a plan either way, avalanche saves more money. If you’ve stalled out on debt payoff before, snowball’s quicker psychological wins may matter more than the extra interest. ## Cut Off New Charges While You Pay Down Old Ones **Watch home-equity borrowing.** Using a HELOC to cover regular expenses still means paying interest — typically 8-9% in 2026 — against money that would otherwise sit in savings. It’s rarely the “safety cushion” it feels like. **Cut spending before reaching for credit.** Most budgets have somewhere to trim; do that before adding new charges to a card you’re actively trying to pay down. **Put a temporary freeze on the card.** Agree with yourself (or your household) not to use the card at all for a set period. Physically removing it from your wallet, or freezing it in your banking app, removes the temptation entirely. **Get help if you need it.** If a card’s balance feels unmanageable, a financial counselor — not a for-profit debt settlement company — can help build and stick to a real budget. A lot of states also offer free credit counseling for anyone dealing with debt. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates on debt relief options.* ## Nonprofit Debt Management Plans If your rates are the real problem — not the total balance — a nonprofit credit counseling agency (look for NFCC or FCAA accreditation) can often negotiate directly with your card issuers to lower your APR, sometimes down to single digits, through a formal debt management plan (DMP). You make one monthly payment to the counseling agency, and they distribute it across your creditors under the negotiated terms. Most DMPs are structured to be paid off in five years or less. This route generally doesn’t damage your credit the way settlement does, since you’re still paying the full balance — just at a lower rate. ## When Settling for Less Makes Sense Card issuers are sometimes willing to accept a lump-sum payment for less than the full balance owed, particularly once an account is several months delinquent. Once a balance has been unpaid long enough, regulations require the issuer to write down its value on their books — at that point, getting back even 40-70 cents on the dollar can look better to them than pursuing an account that may never get paid at all. By this point the account has often already been sold or assigned to a third-party collector, whose calls are governed by their own rules — see my guide to [debt collection call limits and how to stop the harassment](https://savingtoinvest.com/handling-debt-collection-calls-and-creditor-harassment-by-knowing-your-rights/) if that is already happening to you. If you’re in real financial distress and considering this route, you’ll typically need to show evidence of hardship and be prepared to pay whatever’s agreed upon immediately — issuers settling this way usually aren’t offering a payment plan on the settlement itself. You can negotiate directly, or hire a debt settlement firm to do it for a fee, which tends to make sense only when the balance is large enough to justify the cost. **Be clear-eyed about the tradeoff.** Settling for less than you owe will show up on your credit report as “settled” rather than “paid in full,” and it will hurt your [FICO score](https://savingtoinvest.com/breaking-down-and-improving-your-fico/) meaningfully — often more, and for longer, than simply paying down the balance over time through the avalanche/snowball approach or a DMP. Settlement is a last resort, not a first move. ## A Realistic Example Take a reader I’ll call Jenna, carrying $9,000 across three cards: $2,000 at 26% APR, $3,000 at 22%, and $4,000 at 18%. Using the avalanche method, she pays minimums on the 22% and 18% cards while directing an extra $300/month at the 26% card first. She clears the 26% card in about 7 months, then rolls that full payment amount into the 22% card, then the 18% — finishing all three in just under two years and paying roughly $1,900 less in total interest than if she’d split her extra payment evenly across all three cards. She never missed a payment and never needed to negotiate anything — the order alone made the difference. ## Common Issues to Watch Out For **Paying settlement or debt-relief companies large upfront fees.** Legitimate nonprofit credit counseling agencies charge little to nothing upfront; be wary of any company demanding large fees before doing any work. **Assuming settlement is your only option.** Most people who aren’t yet seriously delinquent do better with a DMP or a disciplined avalanche/snowball approach — settlement usually only makes sense once you’re already significantly behind. **Splitting extra payments evenly across cards.** It feels fair, but it costs more in total interest than concentrating extra payments on one card at a time, whichever method (avalanche or snowball) you choose. **Closing a card right after paying it off.** This can shorten your average account age and reduce total available credit, which may lower your score — consider keeping it open with occasional light use instead. Frequently Asked Questions QWhat's the difference between the avalanche and snowball debt payoff methods? AAvalanche targets your highest-interest-rate balance first and saves the most money overall. Snowball targets your smallest balance first, which tends to keep people more motivated even though it costs slightly more in total interest. QWill negotiating my credit card debt hurt my credit score? AA nonprofit debt management plan generally doesn't hurt your score much since you're paying the full balance at a reduced rate. Settling for less than you owe does hurt your score, and shows up on your credit report as 'settled' rather than 'paid in full.' QHow much can a nonprofit credit counseling agency actually lower my rate? AResults vary by agency and creditor, but reported average reductions run from roughly 22% down into the single digits, typically paid off over five years or less. QWhen does it make sense to settle credit card debt for less than I owe? AGenerally only once you're significantly behind and can show real financial hardship - for anyone current on payments, a 0% balance transfer, personal loan, or debt management plan is almost always the cheaper and less damaging option. QIs it better to pay off the smallest balance or the highest interest rate first? AMathematically, highest interest rate first (avalanche) saves you the most money. If you've struggled to stick with a payoff plan before, smallest balance first (snowball) may keep you more consistent, even at a slightly higher total cost. QDo debt settlement companies charge fees? AYes, typically a percentage of the debt enrolled or the amount saved - factor that cost in before deciding it's worth it versus negotiating directly or using a nonprofit credit counseling agency. **Categories:** Personal Finance and Money --- ### [How to Get Out of Debt in 2026 — The Avalanche and Snowball Methods, Compared](https://savingtoinvest.com/10-ways-to-get-out-of-debt-starting-now/) **Published:** September 1, 2019 **Author:** Andy **Content:** ### Key Takeaways - The average American carries $6,715 in credit card debt, and average credit card APRs are running 20-25% in 2026 - high enough that minimum payments barely dent the balance. - The debt avalanche (highest interest rate first) saves the most money mathematically. The debt snowball (smallest balance first) tends to work better behaviorally because of quick wins. - Neither method works without a first step: know your actual balances and interest rates. Most people underestimate what they're paying until they add it up. - Consolidating high-rate credit card debt into a lower-rate personal loan or balance transfer card can cut your effective rate substantially - but only if you stop adding new charges to the paid-off cards. - 'Live poor' isn't a plan - it's a starting attitude. The actual plan is picking a method, automating payments above the minimum, and tracking progress. The average American carries $6,715 in credit card debt, and average credit card APRs are running in the 20-25% range in 2026. At those rates, a $6,700 balance paying only the minimum can take years to clear and cost more in interest than the original purchases. Getting out of debt isn’t complicated in concept — pay more than the minimum, stop adding new charges, pick a method and stick with it. The part that trips people up is picking a method and actually sticking with it. Here’s how the two standard approaches compare, plus the practical steps around them. Covered in this Article: [Toggle](#) - [Debt Avalanche vs. Debt Snowball](#Debt_Avalanche_vs_Debt_Snowball) - [Before Either Method: Know Your Actual Numbers](#Before_Either_Method_Know_Your_Actual_Numbers) - [Practical Ways to Free Up Money for Payoff](#Practical_Ways_to_Free_Up_Money_for_Payoff) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## Debt Avalanche vs. Debt Snowball Both methods have you pay the minimum on every debt except one, and throw every extra dollar at that one debt until it’s gone — then roll that payment into the next debt. The difference is which debt you attack first. **Debt avalanche**: target the highest interest rate first, regardless of balance. This saves the most money in total interest paid, mathematically, every time. **Debt snowball**: target the smallest balance first, regardless of interest rate. This method (popularized by Dave Ramsey’s *The Total Money Makeover*) costs slightly more in total interest, but the quick win of paying off a full balance fast tends to keep people motivated through the slog of the following debts. Neither is objectively “correct” — the avalanche is better math, the snowball is often better behavior. If you’re confident you’ll stick with a plan regardless of early wins, avalanche saves you money. If you’ve started and abandoned debt payoff plans before, snowball’s momentum may matter more than the extra interest. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates.* ## Before Either Method: Know Your Actual Numbers Both methods fail without this step. List every debt, its balance, and its actual interest rate — not what you assume it is. A lot of people are surprised how much a store credit card or an old balance transfer offer’s post-promo rate has crept up to. If you don’t know your rates, log into each account or check a recent statement. This alone often changes which debt someone chooses to attack first. ## Practical Ways to Free Up Money for Payoff **Consolidate where it actually lowers your rate.** A personal loan or 0% balance transfer card can move high-rate credit card debt to a lower rate — but this only helps if you close or stop using the paid-off cards. Consolidating and then re-running up the old balances leaves you worse off than when you started. **Cut the categories that quietly add up.** Food, subscriptions, and “miscellaneous” spending are consistently where budgets leak — not because of one big purchase, but many small ones that don’t feel significant individually. **Redirect windfalls instead of spending them.** A tax refund, bonus, or side income is the fastest way to make a dent in a balance — put it toward the debt before it becomes discretionary spending. **Sell what you’re not using.** Turning unused items into a lump-sum payment toward your target debt is a quick way to accelerate either method. ## Common Issues to Watch Out For I get questions about this a lot, so here’s what trips people up most often. **Paying minimums on everything and calling it a plan.** Minimum payments are designed to maximize the time (and interest) it takes to pay off a balance. You need at least one debt getting more than the minimum for either method to actually work. **Consolidating without changing the underlying habit.** A balance transfer or personal loan buys you a lower rate, not a fix. If new charges creep back onto the old cards, you can end up with both the original balance and a new loan. **Ignoring the psychological side.** The math says avalanche wins. But if you’ve tried and failed at debt payoff before, the snowball’s early wins may be worth the extra interest cost to actually finish the plan. **Treating “debt consolidation” companies as a shortcut.** Be cautious with third-party debt settlement or consolidation services that charge fees — a call to your own bank or credit union about consolidation options is usually cheaper and doesn’t come with the credit-damage risk some settlement programs carry. And if a debt has already been sold to a collection agency, know that federal law limits how often they can call you and what they can say — see my [guide to debt collection call limits and how to stop the harassment](https://savingtoinvest.com/handling-debt-collection-calls-and-creditor-harassment-by-knowing-your-rights/). **Not budgeting for the unexpected.** A debt payoff plan with zero buffer for a car repair or medical bill often gets derailed by the first surprise expense, which then goes right back on a credit card. **Related reading:** - [Budgeting Pitfalls and Remedies](https://savingtoinvest.com/budgeting-pitfalls-and-remedies/) - [The Power of Compounding](https://savingtoinvest.com/power-of-compounding-1-million-now-or/) - [Capital Gains Tax Rates — Short and Long Term](https://savingtoinvest.com/capital-gains-tax-short-and-long-term-rates-plus-other-factors-to-consider/) - [Eight Things Not to Do With Your 401(k) and IRA](https://savingtoinvest.com/what-not-to-do-with-your-401k-and-ira/) Frequently Asked Questions QWhat's the difference between the debt avalanche and debt snowball methods? AThe avalanche method pays off the highest-interest-rate debt first, which saves the most money in total interest. The snowball method pays off the smallest balance first, which tends to keep people motivated through quick wins, even though it usually costs a bit more in total interest. QWhat is the average credit card interest rate right now? AAverage credit card APRs are running in roughly the 20-25% range as of mid-2026, though rates vary significantly by card type and card issuer, and by whether you're looking at new-offer or existing-account averages. QIs debt consolidation a good idea? AIt can be, if it genuinely lowers your interest rate and you stop using the accounts you paid off. Consolidating and then running the old balances back up leaves you with more total debt than before. QShould I pay off debt or invest first? AThere's no universal answer, but a common rule of thumb is that debt with a rate well above what you could reasonably expect to earn investing (like most credit card debt at 20%+) is usually worth prioritizing before investing extra cash, aside from capturing any employer 401(k) match. QHow long does it typically take to pay off credit card debt? AIt depends heavily on the balance, rate, and how much above the minimum you pay. At a 20%+ APR, paying only the minimum can take years and cost more in interest than the original balance - paying even modestly more than the minimum shortens that dramatically. **Categories:** Personal Finance and Money, Saving and Investing ideas **Tags:** coupon, credit, debt, frills, saving, Work --- ### [Debt Collection Calls in 2026: Your Rights Under Regulation F, and How to Stop Creditor Harassment](https://savingtoinvest.com/handling-debt-collection-calls-and-creditor-harassment-by-knowing-your-rights/) **Published:** June 26, 2010 **Author:** Andy **Content:** ### Key Takeaways - Federal Regulation F caps most debt collectors at 7 calls per 7 days about a single debt, and bars them from calling again for 7 days after you've already spoken about it. - Some states and cities go further: New York City's new SHIELD Rule (effective September 1, 2026) caps ALL contact - calls, texts, and emails combined - at just 3 per 7 days, and Massachusetts effectively limits collectors to 2 completed calls a week. - Collectors can text and email you now, but only with your consent, capped at the same 7-in-7 frequency, and with an easy opt-out on every message - and a growing number of 'collection' texts with payment links are scams, not real collectors. - There's no federal ban on medical debt showing up on your credit report - a court struck down the CFPB's 2025 rule in July 2025. Credit bureaus still won't report medical debt until it's over 12 months delinquent, remove it once paid, and skip it entirely if it's under $500 - and roughly 15 states now have their own, separate bans that don't depend on the federal rule. - Debt doesn't disappear once it's old, but a collector's right to sue you over it does, once your state's statute of limitations runs out - typically 3 to 6 years, depending on the state and debt type. - Making even a small payment, or promising to pay in writing, can restart that clock - so know your state's rules before you respond to an old debt. - With the CFPB's enforcement capacity reduced in 2026 (nine debt-collection enforcement actions in 2025, down from sixteen in 2024), state attorneys general and the FTC have become the more active watchdogs - file complaints with both. One of the worst forms of creditor harassment is relentless debt collection calls. For some people, the calls become so frequent that they consider changing their phone number just to make them stop. The good news: federal law spells out exactly how often a collector is allowed to contact you, what they can say, and what happens if they cross the line — and in 2026, a handful of states and cities have gone even further than the federal rules. Covered in this Article: [Toggle](#) - [The Rulebook Changed: Meet Regulation F](#The_Rulebook_Changed_Meet_Regulation_F) - [Beware of Scam “Debt Collection” Texts](#Beware_of_Scam_%E2%80%9CDebt_Collection%E2%80%9D_Texts) - [Medical Debt: Where It Actually Stands in 2026](#Medical_Debt_Where_It_Actually_Stands_in_2026) - [Is There a Deadline on Old Debt? Statute of Limitations by State](#Is_There_a_Deadline_on_Old_Debt_Statute_of_Limitations_by_State) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [How to Stop Collection Calls](#How_to_Stop_Collection_Calls) - [Federal Debt Follows Different Rules](#Federal_Debt_Follows_Different_Rules) - [Looking Ahead: 2027](#Looking_Ahead_2027) ## The Rulebook Changed: Meet Regulation F For decades, the Fair Debt Collection Practices Act (FDCPA) set the broad rules — no calls before 8 a.m. or after 9 p.m., no abusive language, no contacting you at a number or time you’ve said is off-limits. Those protections still stand. But since 2021, the CFPB’s Regulation F (12 CFR Part 1006) has layered on specific, numeric limits that make the FDCPA’s vague “don’t harass people” standard much easier to enforce. The headline rule: a collector is presumed to be harassing you if they call more than **7 times within 7 consecutive days** about a specific debt, or call you again within **7 days after** you’ve already had a phone conversation about that debt. Cross either line and the burden shifts to the collector to prove it wasn’t harassment — a real advantage if you ever end up filing a complaint or lawsuit. Regulation F also formally opened the door to collectors texting and emailing you, something the original 1977 FDCPA never anticipated. Collectors need your consent for a given phone number or email address, that consent has to be refreshed periodically, and every message must include an easy way to opt out. The same 7-in-7 frequency cap applies to texts as it does to calls. Collectors can also leave a “limited-content message” — a voicemail with just their name, a callback number, and nothing that reveals you owe a debt — without triggering the fuller disclosure requirements a real collection call requires. ### Some States and Cities Go Further Than the Federal Rules Regulation F is a floor, not a ceiling. A growing number of states and cities impose tighter limits, and if you live in one, the stricter rule applies to you. New York City’s Department of Consumer and Worker Protection adopted the “Stopping Harassment and Intimidation and Ensuring Lawful Debt” (SHIELD) Rule in February 2026, effective September 1, 2026. It replaces Regulation F’s rebuttable 7-in-7 presumption with a hard cap: no more than **3 total contact attempts** — calls, texts, and emails combined — within any 7-day period, plus a 60-day deadline for a collector to produce documentation after you dispute a debt, or they have to stop collecting. Massachusetts has had its own tighter cap for years: the state Attorney General’s debt collection regulations (940 CMR 7.00) work out to roughly 2 completed calls per week, well below the federal 7-in-7. If a collector is contacting you more than that and you live in NYC or Massachusetts, you may have a stronger claim than Regulation F alone would give you. ## Beware of Scam “Debt Collection” Texts Regulation F’s texting rules assume you’re actually dealing with a real collector — but a lot of “you have an outstanding debt, click here to pay” texts aren’t from collectors at all. I get asked about this a lot, and it’s a fast-growing scam pattern: a text that names a vague-sounding agency, creates urgency, and links to a payment page designed to harvest your card number or banking details. Real debt collectors overwhelmingly prefer mailing you a written validation notice first, and a real one will never pressure you to pay through a link in an unsolicited text before you’ve had a chance to verify the debt. Before you click anything or pay: - **Don’t click the link.** Look up the company name independently and call the number listed on its official website, not the number in the text. - **Ask for a written validation notice** with the original creditor’s name, the account number, and the amount — collectors are required to provide this, and legitimate ones will. - **Check your own records first.** Pull a free credit report from [AnnualCreditReport.com](https://www.annualcreditreport.com/) to see whether the debt shows up at all before assuming the text is real. If you’re ever unsure whether a message about your accounts is legitimate or a phishing attempt, the same verification habits that [protect your Social Security number from identity theft](https://savingtoinvest.com/hacking-social-security-numbers-and-how/) apply here too — never confirm personal or financial details through a channel the other side initiated. ## Medical Debt: Where It Actually Stands in 2026 If you’ve heard that medical debt can no longer hurt your credit score, that’s only partly true. The CFPB finalized a rule in January 2025 that would have wiped roughly $49 billion in medical debt off consumer credit reports nationwide, but a federal court in Texas vacated it in July 2025, ruling the CFPB had exceeded its authority under the Fair Credit Reporting Act. What still protects you federally is the credit bureaus’ own voluntary 2023 policy: no medical debt is reported until it’s been delinquent for more than 12 months, paid medical collections are removed regardless of size, and unpaid medical debt under $500 never appears at all. This matches what I found when I updated my [FICO score breakdown](https://savingtoinvest.com/breaking-down-and-improving-your-fico/) — the same 12-month grace period applies there. On top of that federal baseline, roughly 15 states — including California, New York, Colorado, Illinois, Virginia, and Washington — now have their own laws restricting medical debt on credit reports. These state laws don’t depend on the vacated CFPB rule to function. There’s a real legal wrinkle worth knowing about, though. The judge who struck down the CFPB rule suggested, in a passing comment, that federal law might preempt some of these state laws too. That comment wasn’t the actual ruling and wasn’t argued in that case, so legal experts consider the state laws’ status unsettled rather than overturned — don’t assume your state’s protection has already been wiped out. ## Is There a Deadline on Old Debt? Statute of Limitations by State Debt doesn’t expire, but a creditor’s legal right to sue you over it does. Once your state’s statute of limitations passes, the debt becomes “time-barred” — collectors can still call and ask you to pay, but they can’t win a lawsuit over it. In several states, even threatening to sue on time-barred debt is itself an FDCPA violation. The clock typically starts from your last payment or the date the account went delinquent, and most states fall in the 3-to-6-year range for credit card debt: StateWritten ContractCredit Card DebtCalifornia (CA)4 years4 yearsTexas (TX)4 years4 yearsFlorida (FL)5 years5 yearsNew York (NY)6 years6 yearsPennsylvania (PA)4 years4 yearsIllinois (IL)10 years5 yearsOhio (OH)6 years6 yearsGeorgia (GA)6 years4 yearsNorth Carolina (NC)3 years3 yearsMichigan (MI)6 years6 years The catch: this clock can restart. Making even a small payment on an old debt, or acknowledging it in writing, can reset the limitations period in most states — sometimes turning a debt you couldn’t legally be sued over back into one you can. Get the original delinquency date in writing before you pay or promise anything. If a collector is chasing old credit card debt specifically, my [guide to negotiating down credit card debt](https://savingtoinvest.com/negotiating-down-your-credit-card-debt/) covers when settling makes sense versus when it’s better to just let the clock run out. ## Common Issues to Watch Out For A few misconceptions come up constantly in reader questions and in forums like Reddit’s r/personalfinance, so it’s worth clearing them up directly. **“It’s not on my credit report, so I don’t need to do anything.”** This is one of the most common — and costly — mistakes I see. A debt not yet showing up on your credit report doesn’t mean it isn’t real or that you’re off the hook; it can still get reported later, and letting it sit unresolved is how a manageable bill turns into a much bigger credit-score hit down the road. **Confusing federal debt with private debt.** If you owe the IRS or a federal student loan, different rules apply than the FDCPA/Regulation F framework covered above — see the federal debt section below. **Assuming every “collector” contacting you is legitimate.** Zombie debt (old, sold-off, or even fully paid debt that resurfaces), wrong-person mix-ups, and outright scams are all common. Always ask for written validation before paying anyone claiming you owe money. **Not documenting calls before disputing.** If you plan to dispute a debt or file a complaint, keep a log of dates, times, and what was said — Regulation F’s 7-in-7 presumption only helps you if you can actually show the pattern. ## How to Stop Collection Calls 1. **Know your rights.** Abusive language, repeated calls past the 7-in-7 limit (or your state/city’s stricter cap), and threats to sue on time-barred debt are all illegal. Most states layer on additional protections — some, like Oregon, Illinois, and New York, added new medical-debt and “coerced debt” protections in 2026. Search “\[your state\] debt collection laws” and stick to `.gov` results. 1. **Put it in writing.** Send a written notice — by certified mail with a return receipt — telling the collector to stop calling and communicate only in writing. Here’s a template: > Your Name > Mailing Address > City, State, Zip > > Date > > Name of Collection Agency > Mailing Address > City, State, Zip > > **Re: Notice to Cease Contact — Case # \_\_\_\_\_\_\_\_** *(or the date of last contact, if you don’t have a case number)* > > To \[name on the agency’s notice\]: > > On \[date\] I received a written notice of the claimed debt, a copy of which is attached. > > This is to give you notice to cease all contact with me or anyone else about this claimed debt, except through my attorney if I retain one. If you must contact me, please do so in writing only. > > I look forward to your written acknowledgment that you’ve received this notice by \[date two weeks out\]. > > Sincerely, > (Signature) > Your Name 1. **File a complaint.** With CFPB enforcement scaled back in 2026, your [state Attorney General](http://www.naag.org) and the FTC have become the more reliably active venues for a complaint. File with both — many state AGs enforce their own, sometimes stricter, debt collection statutes, and if you’re in NYC, the DCWP now handles SHIELD Rule complaints separately. 1. **Record the call and ask for identification.** Tell the caller upfront you’re recording (check your state’s consent-to-record rules first), and ask them to identify themselves and the agency they represent. Set up call-screening through your phone carrier to filter out calls with no caller ID. 1. **Sue if they cross the line.** You can sue a debt collector in state or federal court within one year of the violation. Courts can award actual damages, up to $1,000 in statutory damages even without proof of financial harm, plus attorney’s fees — and a class action can recover up to $500,000 or 1% of the collector’s net worth. Winning the case doesn’t erase a debt you legitimately owe, though — it just penalizes the illegal collection tactics. 1. **Actually deal with the underlying debt.** Stopping the calls doesn’t make the balance disappear. If the debt is legitimate and within the statute of limitations, my [guide to getting out of debt](https://savingtoinvest.com/10-ways-to-get-out-of-debt-starting-now/) walks through the avalanche and snowball payoff methods, which tend to work better once the harassment itself has stopped and you can think clearly about a plan. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates as more states and cities adopt their own debt collection rules.* ## Federal Debt Follows Different Rules Government debt works differently than private-collector debt, and the FDCPA/Regulation F framework above mostly doesn’t apply to it. If you owe the IRS, a federal student loan, or another federal debt, robocalls and autodialed texts to your cell phone about that debt don’t require your prior consent the way private-collector robocalls do. The government’s own rules still cap contact, though: **3 robocalls or robotexts within any 30-day period per loan or debt type**, only between 8 a.m. and 9 p.m. your local time. You can opt out at any time by any reasonable method. This is a completely separate legal track from Regulation F, and it explains why the rules can feel different if you’re dealing with, say, a defaulted federal student loan versus a credit card in collections. If you’re facing a [Social Security overpayment clawback](https://savingtoinvest.com/social-security-overpayment-clawback/) or [student loan wage garnishment tied to Social Security](https://savingtoinvest.com/student-loan-social-security-garnishment/), those follow their own federal processes rather than the private-collector rules covered above. Job loss is one of the most common reasons private debt ends up in collections in the first place — if that’s your situation, my guide to [negotiating your severance package](https://savingtoinvest.com/being-laid-off-negotiate-that-severance-package/) covers what to ask for before you’re relying on savings to cover bills. ## Looking Ahead: 2027 New York City’s SHIELD Rule takes effect September 1, 2026, and it’s the strictest municipal debt collection framework in the country. Once it’s been enforced for a few months, expect consumer advocates in other large cities to push for similar hard caps. State legislatures are also likely to keep filling the gap left by reduced federal enforcement. Several states expanded medical-debt and “coerced debt” (debt run up by an abusive partner without your consent) protections in 2026, and more are likely to follow in 2027. The bigger open question is the medical-debt preemption fight: whether federal law actually overrides the roughly 15 state laws banning medical debt from credit reports is still unresolved and could get tested in court well into 2027. The CFPB’s own funding and authority also remain tied up in ongoing litigation, so don’t assume the federal rulebook will stay static — check back here or with your state Attorney General’s office before assuming an old rule still applies. Frequently Asked Questions QHow many times can a debt collector legally call me? AUnder federal Regulation F, a collector is presumed to be harassing you if they call more than 7 times in 7 consecutive days about a specific debt, or call again within 7 days of a call where you actually spoke about it. Some places have stricter limits - New York City's SHIELD Rule (effective September 1, 2026) caps all contact at 3 per 7 days, and Massachusetts effectively limits collectors to about 2 completed calls a week. QCan debt collectors text or email me now? AYes, but only with your consent for that specific number or address, subject to the same 7-in-7 frequency cap (or your state/city's stricter cap), and only if every message includes an easy way to opt out. QHow can I tell if a debt collection text is a scam? ANever click a payment link in an unsolicited text. Look up the company independently and call the number on its official website, ask for a written validation notice with the original creditor's name and account details, and check your own credit report to see if the debt actually shows up before paying anyone. QIf a debt isn't on my credit report, does that mean I don't owe it? ANo. A debt not yet appearing on your credit report doesn't mean it isn't real or that you can ignore it - it can still be reported later, and letting it sit unresolved typically leads to a bigger credit hit than dealing with it early. QDoes medical debt still hurt my credit score in 2026? AIt can, but with real limits. The CFPB's 2025 rule banning medical debt from credit reports was vacated by a federal court in July 2025. The credit bureaus' voluntary policy still applies - no medical debt is reported until it's over 12 months delinquent, paid medical collections are removed, and unpaid medical debt under $500 never appears - and roughly 15 states have their own separate bans on top of that. QWhat is time-barred debt? ADebt past your state's statute of limitations (typically 3 to 6 years for credit card debt). Collectors can still contact you, but they can no longer win a lawsuit over it - and making a payment can restart the clock. QWhere do I report a debt collector that's breaking the rules? AFile with your state Attorney General's office and the FTC. The CFPB accepts complaints too, but its enforcement capacity has been reduced in 2026 (nine debt-collection actions in 2025 versus sixteen in 2024), so state and FTC channels are currently more active. NYC residents can also file directly with the DCWP. QAre the robocall rules different if I owe a federal debt like a student loan? AYes. Federal debt collection robocalls and robotexts don't need your prior consent the way private-collector calls do, but they're still capped at 3 attempts within any 30-day period per debt type, restricted to 8 a.m.-9 p.m. local time, and you can opt out at any time. **Categories:** Personal Finance and Money **Tags:** credit, debt, debt collection --- ### [2026-2027 Updates: Is There a 4th Stimulus Check? IRS Payment Status and What's Actually Available](https://savingtoinvest.com/stimulus-checks-economic-impact-payments-to-be-paid-out-from-mid-april-per-irs/) **Published:** April 2, 2020 **Author:** Andy **Content:** ### Key Takeaways - There is no 4th federal stimulus check. Congress has not authorized any new Economic Impact Payment. - All three original stimulus checks (2020-2021) have been fully distributed. The programs are closed. - The IRS made final auto-payments of up to $1,400 to approximately 1 million people who missed the 2021 Recovery Rebate Credit - that window closed in early 2025. - A 'tariff dividend' of around $2,000 has been proposed by the Trump administration but has not been enacted. - State-level relief payments are active in New Jersey, Oregon, Pennsylvania, New York, Colorado, and others. There is no 4th stimulus check. The three federal Economic Impact Payments issued during 2020 and 2021 are complete — the IRS has finished distributing all payments under those programs, including a final auto-payment push in late 2024 for people who missed the 2021 credit. If you’re reading this because you saw something on social media claiming a new check is coming, I’ll be direct: as of mid-2026, no fourth payment has been authorized. Here’s what you actually need to know. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates.* Covered in this Article: [Toggle](#) - [A Quick History of the Three Federal Stimulus Checks](#A_Quick_History_of_the_Three_Federal_Stimulus_Checks) - [The Final $1,400 Auto-Payments Are Also Done](#The_Final_1400_Auto-Payments_Are_Also_Done) - [Is There a 4th Stimulus Check Coming? The Honest Answer](#Is_There_a_4th_Stimulus_Check_Coming_The_Honest_Answer) - [How to Check Your Prior Stimulus Payment Status](#How_to_Check_Your_Prior_Stimulus_Payment_Status) - [What State Payments Are Available in 2026](#What_State_Payments_Are_Available_in_2026) - [Other Federal Programs That Are Still Active](#Other_Federal_Programs_That_Are_Still_Active) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## A Quick History of the Three Federal Stimulus Checks The Economic Impact Payments were a COVID-era program that distributed three rounds of direct payments to most Americans. Here’s where they stand: CheckLawAmount (single filer)Phase-out beginsStatus1st (2020)CARES ActUp to $1,200$75,000 AGIComplete2nd (2020/21)Consolidated Appropriations ActUp to $600$75,000 AGIComplete3rd (2021)American Rescue PlanUp to $1,400$75,000 AGIComplete All three payments are fully distributed and closed. No additional money is being sent under these programs. ## The Final $1,400 Auto-Payments Are Also Done In late 2024, the IRS identified approximately 1 million people who had filed 2021 tax returns but never claimed the Recovery Rebate Credit — in most cases because they left it blank or mistakenly entered $0. The IRS automatically issued payments of up to $1,400 to those individuals, without requiring them to file an amended return. Those payments were sent between December 2024 and January 2025. The program is now closed. The **deadline to file a 2021 return** and potentially claim a missed credit passed in April 2025 (three years after the April 2022 filing deadline). If you didn’t file for 2021 by then, that opportunity is gone. ## Is There a 4th Stimulus Check Coming? The Honest Answer Short answer: no one in Congress has passed legislation authorizing a fourth check, and nothing on the legislative horizon looks likely to change that in the near term. The two things that sometimes get confused with a fourth check: **The tariff dividend proposal.** President Trump proposed a one-time payment to Americans — with figures around $2,000 per household mentioned — funded by revenue from new tariffs on imports. It has not been enacted. The U.S. Supreme Court struck down significant portions of the Trump tariff structure as illegal in February 2026, which reduces the revenue base the proposal depended on. The idea may resurface, but right now it’s a proposal, not a program. **The Warrior Dividend.** This is a real $1,776 one-time, tax-free payment — but it’s specifically for active-duty military and reservists. It is not available to the general public. I’ll update this page if something changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## How to Check Your Prior Stimulus Payment Status If you’re not sure whether you received all three checks, here’s how to verify: 1. **IRS Online Account:** Log in at [IRS.gov](https://www.irs.gov) and navigate to “Tax Records” — you can see all Economic Impact Payments the IRS issued to you. 2. **IRS Letter 1444:** The IRS mailed confirmation letters for each payment. If you saved these, they show the amounts paid. 3. **Check your 2021 tax return:** Line 30 of your 2021 Form 1040 is where the Recovery Rebate Credit was claimed. If you entered $0 and received nothing, you may have been in that auto-payment group. As noted above, the window to claim any unclaimed amounts through an amended return is now closed. ## What State Payments Are Available in 2026 While the federal programs are done, several states have authorized direct payments or rebates in 2026: StateProgramAmountNew JerseyStayNJ property tax reliefUp to $6,500OregonKicker tax rebate$1.4B returned (based on income)PennsylvaniaProperty Tax/Rent RebateUp to $1,000New YorkEmpire State Child CreditUp to $1,000/child (under 4)ColoradoPTC RebateUp to $1,154/yearCaliforniaClimate CreditUtility bill credit These programs have their own eligibility requirements and typically require a separate application — they don’t auto-deposit. Check your state’s department of revenue or taxation website for details. ## Other Federal Programs That Are Still Active These aren’t stimulus checks, but they’re real money from the federal government that many eligible people miss: **Earned Income Tax Credit (EITC):** A refundable tax credit for lower-income workers. For 2026, the credit can be worth up to $7,830 for families with three or more children. Requires filing a federal tax return. **Child Tax Credit (CTC):** $2,200 per qualifying child in 2026 under the One Big Beautiful Bill (OBBB). The refundable Additional Child Tax Credit (ACTC) can put up to $1,700 per child back in your pocket even if you owe no taxes. **Child and Dependent Care Credit:** Helps offset daycare and care costs for working parents. **SNAP (food stamps):** Still active — if you’ve experienced a job loss or income reduction, you may qualify. Apply through your state’s benefits portal. See our [Child Tax Credit guide](https://savingtoinvest.com/3600-expanded-child-tax-credit-on-top-of-1400-dependent-stimulus-check-for-5k-in-2021-biden-stimulus-package/) for details on the 2026 CTC amounts and eligibility. ## Common Issues to Watch Out For **Scams claiming you’re owed a stimulus check.** The IRS does not contact people by text message, social media, or robocall to tell them they’re owed a payment. If you receive an unsolicited message claiming to be from the IRS about a stimulus check, it’s a scam. Never provide your Social Security number, bank account information, or payment in response to these contacts. **Confusing a tax refund with a stimulus check.** A tax refund is money you overpaid in taxes during the year — it’s not a government payment, it’s your own money coming back. If someone tells you the IRS is issuing “stimulus refunds” in 2026, they’re either confused or intentionally misleading you. **Thinking the tariff dividend has been approved.** Several posts on social media have presented the tariff dividend as confirmed. It has not been signed into law. Don’t factor it into your financial planning until it actually passes Congress and gets signed. **Missing state programs because you assume you don’t qualify.** Income thresholds on state relief programs are often higher than people expect. Pennsylvania’s Property Tax/Rent Rebate, for example, now goes up to $48,110 in income — many renters don’t realize they qualify. Check your state’s program before assuming you’re ineligible. **Not filing because you think you owe money.** The Earned Income Tax Credit and Child Tax Credit are refundable, meaning you can get money back even if your tax liability is zero. Not filing at all means leaving those credits on the table. IRS Free File is available for most people with income under $84,000. Frequently Asked Questions QIs there a 4th stimulus check being issued in 2026? ANo. The three federal Economic Impact Payments issued in 2020 and 2021 under COVID relief legislation are the only federal direct payments of that type. No fourth stimulus check has been authorized by Congress. Any posts or messages claiming otherwise are misinformation or scams. QWhat was the final $1,400 IRS payment and who got it? AIn late 2024, the IRS automatically issued up to $1,400 to approximately 1 million people who had filed 2021 tax returns but hadn't claimed the Recovery Rebate Credit. These payments went out between December 2024 and January 2025. The deadline to file a 2021 return to claim missed amounts passed in April 2025 - that window is now closed. QWhat is the Trump tariff dividend and has it been approved? AThe tariff dividend is a proposal from the Trump administration to send Americans a one-time payment - with figures around $2,000 mentioned - funded by tariff revenue. As of mid-2026, it has not been enacted into law. The Supreme Court struck down portions of the Trump tariff structure in February 2026, complicating the revenue picture. It remains a proposal only. QHow do I check if I received all three stimulus checks? ALog in to your IRS online account at IRS.gov and go to 'Tax Records' to see your Economic Impact Payment history. You can also look at your 2021 tax return - if you were due a payment and didn't receive it, the Recovery Rebate Credit would have appeared on Line 30 of Form 1040. However, the window to claim any missed amounts has closed. QAre any states sending stimulus or relief payments in 2026? AYes - several states have active payment programs. New Jersey's StayNJ program offers up to $6,500 in property tax relief. Oregon is returning over $1.4 billion to taxpayers through its Kicker rebate credit. Pennsylvania expanded its Property Tax/Rent Rebate to up to $1,000. New York, Colorado, California, and others have their own programs. These require applying separately through state agencies and don't work like the federal stimulus deposits. QWhat federal money am I still eligible to collect in 2026? ASeveral federal programs remain active: the Child Tax Credit ($2,200 per child), the Earned Income Tax Credit (up to $7,830 for families with three or more children), the Child and Dependent Care Credit, and SNAP food assistance. These require filing a federal tax return or applying through a state benefits portal - they don't come automatically. **Categories:** Government Rebates and Payments, Taxes and Retirement **Tags:** stimulus --- ### [2026 Monthly Budget Comparison – Big City vs. Small Town](https://savingtoinvest.com/monthly-budget-comparison-big-city-10000-vs-small-town-4000/) **Published:** December 19, 2013 **Author:** Andy **Content:** ### Key Takeaways - The national average apartment rent is roughly $1,843/month in 2026 - but that masks huge variation, from budget-friendly Midwest metros around $1,000-$1,200/month to coastal cities running 2-3x the national average. - Housing is by far the largest driver of the cost gap between big cities and small towns; groceries, utilities, and consumer goods are far more similar nationwide. - Workers in large metro areas (250,000+ population) earn roughly 21% more on average than workers in smaller cities and rural areas - but that premium is concentrated in white-collar work and has been shrinking for smaller 'micropolitan' areas since the late 1980s. - That income gap narrows even further for hourly, retail, and gig work - reader questions I see on forums, and separate research on non-college wages, both point the same direction: the 'move somewhere cheaper' math looks very different depending on what you actually do for a living. - Midwestern and Southern metros typically run 10% to 30% below the national cost-of-living index, driven by lower property taxes and more available land. - A side-by-side example: a family of three spending $10,000/month in the San Francisco Bay Area and a comparable family spending $4,000/month in a small Midwest town both land near the same 3-4% savings rate - the gap is almost entirely in the housing and childcare lines, not everyday spending. - The right call depends on the ratio between your income premium and your cost premium for your specific field - not the sticker price of rent alone. One of the biggest financial decisions many people face isn’t about a specific purchase — it’s about where to live. The gap between big-city and small-town costs of living can be enormous, and it’s worth breaking down where that gap actually comes from before assuming one option is automatically “better.” I get some version of this question from readers constantly, usually framed as “just move somewhere cheaper and you’ll come out ahead.” Sometimes that’s true. Often the math is a lot closer than it looks on paper, which is exactly why I built the side-by-side example further down instead of just citing a national average. ### Where the Big Gap Really Comes From: Housing Housing is, by far, the largest driver of the cost difference between big cities and small towns. A one-bedroom apartment that rents for a modest amount in a small town can easily cost two, three, or more times as much in a major metro’s downtown core. This single line item usually explains most of the total budget gap between the two lifestyles. ### Transportation: A Real but Smaller Factor Big-city living often reduces or eliminates car ownership costs if public transit is viable — no car payment, insurance, gas, or parking. But in cities without strong transit, or in small towns where a car is mandatory, this factor evens out and everyone pays roughly the same. One nuance worth flagging: in genuinely rural areas, it’s often not one car that becomes necessary but two, plus meaningfully more miles driven per month for routine errands. That shows up as higher insurance and maintenance spending than the simple “car vs. no car” framing suggests. ### Where Small Towns Don’t Actually Save You Money It’s a common assumption that everything is cheaper in a small town, but groceries, utilities, and many consumer goods are often priced similarly nationwide, especially with online shopping narrowing regional price gaps. The real savings tend to be concentrated in housing and, to a lesser extent, in services like dining out or personal care. That said, “small town” and “rural” aren’t the same thing financially. A small town with normal cable, fiber, and multiple grocery options behaves like the example below. A genuinely rural or exurban property with one internet provider and a longer supply chain can see utilities and delivery costs run higher than city rates, not lower — the opposite of what people expect going in. ### The Income Side of the Equation The cost comparison only tells half the story — salaries for the same role are often meaningfully higher in major metros, partly to offset the cost of living. Whether a big city or small town leaves you better off financially depends on the ratio between the income premium and the cost premium for your specific field, not just the sticker price of rent. This is the part I push back on most when someone frames the decision as one-size-fits-all. The metro pay premium is real, but it’s concentrated in salaried, white-collar roles. If your income is hourly, tips-based, or gig work, that premium is much thinner — sometimes close to nonexistent — because pay in those jobs tends to track the local minimum wage and local demand far more than it tracks the region’s overall cost of living. ### Quality-of-Life Tradeoffs That Don’t Show Up in a Budget Career opportunities and networking tend to be denser in big cities, particularly in specialized fields. Small towns often offer more space, lower stress, and a slower pace of life that some people value more than the income premium. Access to specialists and urgent medical care is another factor that rarely makes it into a monthly budget line but matters in practice — smaller towns and rural counties often mean a longer drive for anything beyond routine care. Neither is objectively “better” financially — it depends on your career, family situation, and personal priorities. See a related discussion of income thresholds and lifestyle in our [upper middle class income breakdown](https://savingtoinvest.com/are-you-upper-middle-class/), which shows how far the same income can stretch differently depending on where you live. ### A Real-World Example: Two Families, Side by Side Numbers are more useful than generalities, so here’s an illustrative example. Both families below are a household of three (two adults, one child in full-time daycare) — one spending about $10,000/month in the San Francisco Bay Area, the other spending about $4,000/month in a small Midwest town. These are representative figures, not a universal formula — your actual numbers will depend on your city, family size, and lifestyle. CategoryBig City Family (Bay Area)Small Town Family (Midwest)Housing (rent/mortgage)$4,800$1,000Utilities$250$200Groceries$950$800Childcare (1 child, full-time)$1,900$650Transportation$200 (transit + occasional rideshare)$600 (car payment, [insurance](https://savingtoinvest.com/cheaper-auto-insurance/), gas)Health insurance (employee share)$600$450Dining out$500$100Personal / entertainment$400$100Savings & retirement$400$100**Total****$10,000****$4,000** A few things jump out once you line the two up side by side. Housing and childcare together account for $6,700 of the big-city family’s $10,000 — two-thirds of the entire budget — while the same two categories are only $1,650 of the small-town family’s $4,000. Everyday categories are much closer than people expect: groceries differ by only $150/month, and utilities by just $50. The “everything is cheaper in a small town” assumption mostly doesn’t hold up once you get past rent and childcare — and that’s assuming a small town with normal city-style infrastructure, not a truly rural property. The savings line is the most counterintuitive part. In dollar terms, the big-city family saves four times as much each month ($400 vs. $100) — but as a share of their budget, that’s only a 4% savings rate, barely ahead of the small-town family’s 2.5%. A much bigger paycheck doesn’t automatically translate into a much bigger savings cushion once the higher fixed costs are covered. Building an actual [high-yield savings](https://savingtoinvest.com/high-yield-savings/) habit matters in either scenario — the dollar amount available for it just starts from a very different place. If you want to build your own version of this table for your specific situation, my [full money and spending roadmap](https://savingtoinvest.com/master-your-money-the-ultimate-personal-income-and-spending-roadmap/) walks through how to set up a real line-item budget rather than working off rough averages. ### The Bottom Line Before making a move in either direction, it’s worth building an actual line-item budget for both scenarios using real listings and real salary data for your specific field and target locations, rather than relying on national averages or gut feel. The gap is usually smaller — or larger — than people initially assume. For a broader look at how cost of living plays out globally, see [the best places to live in the world](https://savingtoinvest.com/the-best-places-to-live-in-the-world/). *[Subscribe here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get the latest money and finance articles delivered to your inbox.* ### Common Issues to Watch Out For I read through personal finance and frugal-living forum threads on this exact topic while updating this post, and a few real gaps kept showing up that a national-average comparison misses. **Your job type matters more than your city.** The “big cities pay more” premium is heavily concentrated in salaried, white-collar work. A [Third Way analysis](https://www.thirdway.org/report/moving-apart-how-non-college-workers-fare-in-urban-and-rural-america) of a decade of wage data found the urban pay advantage for non-college workers actually shrank over that period, while it grew substantially for college-educated workers. If you’re in hourly, retail, or gig work, don’t assume the metro pay bump will offset a big-city budget the way it might for a salaried job. **“Small town” and “rural” aren’t interchangeable.** Forum threads from people who’ve actually made the move consistently flag that once you’re outside normal cable/fiber and multi-grocery-store territory, utilities, internet, and delivery costs can run higher than city rates, not lower — fewer providers means less competition on price. **A car-dependent move often means two cars, not one.** Readers moving to more rural areas repeatedly mention going from one household vehicle to two, plus a real jump in monthly mileage for routine errands — worth budgeting for beyond just a single car payment line. **Self-sufficiency has real upfront costs.** If part of the appeal of a small-town or rural move is growing your own food or taking on more home maintenance yourself, budget for tools, fencing, seed and soil costs, and repair bills before counting on it to lower your monthly spending — several readers found those savings took years to materialize, if they showed up at all. Frequently Asked Questions QIs it always cheaper to live in a small town than a big city? AUsually, but not uniformly. Housing is almost always cheaper in smaller markets - often by half or more compared to major coastal metros. But groceries, utilities, and many everyday goods cost roughly the same nationwide, so the total savings gap is smaller than people often assume once you look past rent. QDoes a big-city salary actually make up for the higher cost of living? ASometimes, but it depends heavily on your field. Research shows large metro workers earn roughly 21% more on average than workers in smaller areas, but that premium is concentrated in white-collar/knowledge work and has been shrinking in smaller metro areas for decades. Run the actual take-home-pay-versus-cost-of-living math for your specific role before assuming the city wins. QDoes moving from a big city to a small town save money if I work a service, retail, or gig job? ANot as reliably as it does for salaried, white-collar work. Hourly and gig pay tends to track the local minimum wage and local demand rather than the broader metro cost-of-living premium, so the income side of the equation is much flatter across locations for these jobs. Compare actual local pay rates in both places rather than assuming a big-city paycheck automatically travels with you. QAre utilities and internet always cheaper in a small town? ANot necessarily. A small town with normal infrastructure - cable or fiber internet, more than one grocery option - tends to price close to national averages, which is the scenario in the example budget above. A genuinely rural or exurban property with limited provider competition can actually see utilities, internet, and delivery costs run higher than city rates, so it's worth checking actual local providers before assuming a rural move is cheaper across the board. QWhat's the single biggest line item that differs between big cities and small towns? AHousing, by a wide margin. It's common for a comparable apartment to cost 2-3x as much in a major coastal metro as in an affordable Midwest or Southern city - a gap far larger than any other category of everyday spending. QShould I factor in state and local taxes when comparing cities? AYes - it's an easy thing to overlook. Some high-wage metros are also high-tax, which eats into part of the income premium. Compare actual take-home pay, not just gross salary, when deciding between locations. QIn the example budgets, why does the small-town family save a smaller dollar amount but a similar savings rate? ABecause housing and childcare - the two categories that scale the most with location - consume a much bigger share of the big-city family's budget before any savings happen. In the example, both families end up saving roughly 2.5-4% of their total budget, even though the dollar amounts are very different ($400 vs. $100/month). It's a reminder that a bigger paycheck doesn't automatically mean a bigger savings cushion once higher fixed costs are covered. **Categories:** Personal Finance and Money **Tags:** budget, rural, saving, urban --- ### [Wyoming SNAP Benefits: 2027 Outlook, Current 2026 Amounts Up to $994/Month](https://savingtoinvest.com/wyoming-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) **Published:** June 22, 2026 **Author:** Andy **Content:** ### Key Takeaways - FY2026 max SNAP benefit: $298/month for 1 person, $994/month for a family of 4 - Benefits load on your Wyoming EBT Card 1st–4th - The OBBB expanded work requirements to adults 55–64 and parents of teens — if you were exempt before, check whether you still are - Wyoming uses the federal 130% FPL income limit — the minimum floor, no expansion - Apply or recertify at Wyoming DFS Benefits or call 307-777-7561 or 2-1-1 A family of four on SNAP in Wyoming can get up to $994 a month in fiscal year 2026 — up from $975 last year — deposited onto the Wyoming EBT Card 1st–4th. The open question now is what USDA sets for FY2027, expected in late summer. But 2026 is a more complicated year than most for SNAP. The One Big Beautiful Bill (OBBB) made some of the biggest cuts to the program in its history — and some Wyoming residents who qualified last year may not qualify now. Here’s what changed, what you can expect to receive, and what to do if you’re denied. Covered in this Article: [Toggle](#) - [2026 SNAP Benefit Amounts in Wyoming](#2026_SNAP_Benefit_Amounts_in_Wyoming) - [When Does SNAP Deposit to Your Wyoming EBT Card?](#When_Does_SNAP_Deposit_to_Your_Wyoming_EBT_Card) - [What’s Changed in 2026: OBBB Work Requirements](#Whats_Changed_in_2026_OBBB_Work_Requirements) - [How to Qualify for Wyoming SNAP in 2026](#How_to_Qualify_for_Wyoming_SNAP_in_2026) - [How to Apply](#How_to_Apply) - [What to Do If Your Wyoming SNAP Application Is Denied](#What_to_Do_If_Your_Wyoming_SNAP_Application_Is_Denied) - [What to Watch: Potential SNAP Changes Ahead](#What_to_Watch_Potential_SNAP_Changes_Ahead) - [Where Can You Use Your Wyoming EBT Card?](#Where_Can_You_Use_Your_Wyoming_EBT_Card) - [Other Benefits If You Receive Wyoming SNAP](#Other_Benefits_If_You_Receive_Wyoming_SNAP) - [Wyoming SNAP: How Benefits Have Changed (2023–2026)](#Wyoming_SNAP_How_Benefits_Have_Changed_2023%E2%80%932026) ## 2026 SNAP Benefit Amounts in Wyoming Wyoming uses the standard federal SNAP benefit schedule. Maximum monthly allotments for FY2026 (October 1, 2025 – September 30, 2026): Household SizeMax Monthly BenefitGross Income Limit (130% FPL)Net Income Limit (100% FPL)1 person$298$1,632/mo$1,255/mo2 people$546$2,214/mo$1,703/mo3 people$785$2,798/mo$2,152/mo4 people$994$3,380/mo$2,600/mo5 people$1,183$3,964/mo$3,049/mo6 people$1,421$4,546/mo$3,497/mo7 people$1,571$5,128/mo$3,945/mo8+ people$1,791+—— **Wyoming (WY) uses the federal 130% FPL income standard** — the minimum floor, no expansion. A family of four must have gross income at or below **$3,380/month** to qualify. This is one of the stricter limits nationally. Most households receive less than the maximum. Your actual benefit depends on net income after deductions (rent, utilities, child care, medical expenses for elderly or disabled members). ### How Much Would a Family of 4 Actually Receive in Wyoming? Here are two realistic examples to show the range: **Scenario A — Lower-income family** A family of 4 with gross monthly income of **$1,500** (one parent working part-time): - Gross income: $1,500 ✓ (within $3,380/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$300 - Net income: $983 - 30% of net income: $295 - **Monthly SNAP benefit: $994 − $295 = $699** **Scenario B — Working family (moderate income)** A family of 4 with gross monthly income of **$2,000**: - Gross income: $2,000 ✓ (within $3,380/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$400 - Net income: $1,383 - 30% of net income: $415 - **Monthly SNAP benefit: $994 − $415 = $579** The 20% earned income deduction rewards working households. Additional deductions for excess shelter costs, child care, or medical expenses (elderly/disabled) can increase your benefit further. ## When Does SNAP Deposit to Your Wyoming EBT Card? Wyoming (WY) distributes SNAP benefits based on the **first letter of your last name**. Benefits load between the 1st–4th: Last Name Starts WithDeposit DateA–E1stF–J2ndK–N2ndO–T3rdU–Z4th Your case number is on your approval letter or available through [Wyoming DFS Benefits](https://dfsweb.wyo.gov). Call **307-777-7561 or 2-1-1** if you’re unsure of your deposit date — it stays the same each month once you’re approved. TANF cash benefits (if applicable) follow a separate deposit schedule. ## What’s Changed in 2026: OBBB Work Requirements The OBBB made several significant changes that took effect in late 2025 and early 2026: **Expanded work requirements**: Adults aged **55–64** who are able to work are now subject to SNAP work requirements for the first time. Previously the cutoff was 49. Parents whose youngest child is **over 14** are also now subject to work rules. **20 hours per week or 80 hours per month** — that’s the threshold for Able-Bodied Adults Without Dependents (ABAWDs) aged 18–64. Work, job training, or approved volunteer activity all count. Fail to meet the requirement and benefits are limited to **3 months in any 36-month period**. **State cost-sharing starting in 2028**: States will begin paying a share of benefit costs based on their SNAP payment error rate. This is new territory for all state budgets. **$186 billion in total federal SNAP cuts** over the next decade. If you were receiving SNAP in 2024 and haven’t recertified recently, check your current eligibility — the rules have shifted. ## How to Qualify for Wyoming SNAP in 2026 **Income**: Gross income must be at or below 130% FPL (see table above). Net income (after deductions) must be at or below 100% FPL. **Residency**: Must be a Wyoming resident. **Citizenship**: U.S. citizens and certain lawfully present immigrants qualify. Undocumented individuals are not eligible for federal SNAP benefits. **Work requirements**: Most able-bodied adults 18–64 must register for work and accept suitable employment. ABAWDs must meet the 80-hour/month work, training, or volunteer threshold. New in 2026: adults 55–64 are now included. ## How to Apply - **Online**: [Wyoming DFS Benefits](https://dfsweb.wyo.gov) — fastest option, available 24/7 - **In person**: Any local Wyoming Department of Family Services office - **Phone**: 307-777-7561 or 2-1-1 Wyoming has up to **30 days** to process your application — or **7 days** if you qualify for expedited SNAP (very low income or resources). Benefits are backdated to your application date. Things can shift quickly. I’ll update this page when anything changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What to Do If Your Wyoming SNAP Application Is Denied Denials are common and often appealable. The most frequent reasons are income slightly over the stated limit, missing documentation, and work requirement issues — all of which can be addressed. **Step 1**: Read your denial notice carefully. Wyoming is required to explain the specific reason in writing. **Step 2**: Gather documentation that addresses the reason — recent pay stubs, rent receipts, proof of work activities, or a letter from your employer if hours changed. **Step 3**: Request a fair hearing within **90 days** of your denial. You can request one online at [Wyoming DFS Benefits](https://dfsweb.wyo.gov), in person at your local Wyoming Department of Family Services office, or by calling **307-777-7561 or 2-1-1**. **Step 4**: While your appeal is pending, you can continue receiving benefits if you were previously approved — request continued benefits when you file your hearing request. --- ## What to Watch: Potential SNAP Changes Ahead **State cost-sharing (FY2027–2028)**: Starting in FY2027, Wyoming will begin paying a share of SNAP benefit costs — a first for all states. The percentage depends on Wyoming’s payment error rate. If cost pressure builds, expect tighter eligibility administration at the state level. **Work requirement enforcement**: Federal guidance on the expanded age 55–64 rules is still evolving. States are implementing these in phases — if you’re in the newly covered age range, check with your caseworker. **FY2027 COLA adjustment**: Benefits update October 1. I’ll post FY2027 amounts here when USDA releases them (typically late summer 2026). Things can shift quickly — [Subscribe or follow us ↗](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates. --- ## Where Can You Use Your Wyoming EBT Card? **In stores**: Any USDA-authorized retailer — including Walmart, Albertsons, Smith’s, Family Dollar (select items), Natural Grocers, and most independent grocery stores. Look for the EBT/SNAP sign at checkout. **Online**: Wyoming SNAP recipients can shop online through **Amazon Fresh** and **Walmart Grocery** — select SNAP/EBT as your payment method at checkout. Delivery fees are not covered by SNAP (only the groceries themselves). **Farmers markets**: Many Wyoming farmers markets accept EBT. Some participate in the Double Up Food Bucks program, which matches SNAP dollars on locally-grown produce. **What SNAP does NOT cover**: Alcohol, tobacco, vitamins/supplements, hot prepared foods, fast food, pet food, household supplies, or hygiene products. ## Other Benefits If You Receive Wyoming SNAP SNAP often unlocks access to other programs: - **Medicaid / CHIP**: Receiving SNAP can streamline Medicaid enrollment for adults and children. Apply through [Wyoming DFS Benefits](https://dfsweb.wyo.gov). - **LIHEAP**: Low Income Home Energy Assistance helps with utility bills. Contact your local community action agency or call 2-1-1. - **WIC**: Nutrition support for pregnant women, new mothers, and children under 5. Separate application through your state health department. - **Summer EBT (SUN Bucks)**: Extra food benefits for school-age children during summer months. Check with your state for 2026 enrollment. - **Free/reduced school meals**: SNAP households automatically qualify. Register through your child’s school district. For a full overview of federal SNAP amounts and recent cuts, see the [2026 SNAP benefits guide](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). See also: [Wyoming unemployment benefit amounts and eligibility rules](https://savingtoinvest.com/wyoming-unemployment-benefits/). --- ## Wyoming SNAP: How Benefits Have Changed (2023–2026) PeriodMax Benefit (Family of 4)Key DevelopmentFY2023 (Oct 2022 – Sep 2023)$939/monthPandemic Emergency Allotments ended — biggest single drop since the pandemicFY2024 (Oct 2023 – Sep 2024)$973/month~3.7% COLA increase; first full year post-pandemicFY2025 (Oct 2024 – Sep 2025)$975/monthMinimal ~0.2% increase; OBBB signed into lawFY2026 (Oct 2025 – Sep 2026)$994/month~2% increase; expanded work requirements take effect The end of Emergency Allotments in early 2023 was the biggest disruption in recent memory — some households that had received the maximum saw benefits drop to $23/month. FY2026 numbers are all standard formula, no pandemic additions. Frequently Asked Questions QHow much is SNAP in Wyoming in 2026? AThe maximum monthly SNAP benefit in Wyoming (WY) for FY2026 is $298 for a single person, $546 for 2 people, $785 for 3 people, $994 for a family of 4, and $1,183 for 5 people. Most households receive less than the maximum based on net income after deductions. QWhen does SNAP deposit to my Wyoming EBT card? ABenefits load 1st–4th. Check your approval letter or Wyoming DFS Benefits for your exact deposit date. QWhat are the income limits for Wyoming SNAP in 2026? AWyoming uses a gross income limit of 130% FPL — approximately $1,632/month for a single person or $3,380/month for a family of four. Net income (after deductions) must be at or below 100% FPL. QHow do I apply for SNAP in Wyoming? AApply online at https://dfsweb.wyo.gov, in person at a local Wyoming Department of Family Services (DFS) office, or by calling 307-777-7561 or 2-1-1. Processing takes up to 30 days, or 7 days if you qualify for expedited benefits. QWhat can I buy with my Wyoming EBT card? ASNAP covers groceries including produce, meat, dairy, bread, cereals, and packaged foods. You can shop in-store at most major grocery chains and online through Amazon Fresh and Walmart Grocery. SNAP does not cover alcohol, tobacco, hot prepared foods, vitamins, or non-food household items. QWhat do I do if my Wyoming SNAP application is denied? ARequest a fair hearing within 90 days of your denial notice. Apply online at https://dfsweb.wyo.gov, in person at a local office, or by calling 307-777-7561 or 2-1-1. The agency must explain the specific reason for denial — gather documentation addressing that reason before your hearing. QDid SNAP benefits change in 2026? AYes. The One Big Beautiful Bill (OBBB) expanded work requirements to include adults aged 55–64 and parents of children over 14. It cuts federal SNAP funding by $186 billion over 10 years and shifts some benefit costs to states starting in 2028. QCan I use my Wyoming EBT card at Walmart or Amazon? AYes to both. Walmart accepts Wyoming EBT in-store and online at walmart.com. Amazon Fresh also accepts SNAP/EBT online — select it as your payment method at checkout. Delivery fees are not covered, only eligible food items. **Categories:** Taxes and Retirement --- ### [Wisconsin SNAP Benefits: 2027 Outlook, Current 2026 Amounts Up to $994/Month](https://savingtoinvest.com/wisconsin-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) **Published:** June 22, 2026 **Author:** Andy **Content:** ### Key Takeaways - FY2026 max SNAP benefit: $298/month for 1 person, $994/month for a family of 4 - Benefits load on your QUEST Card (EBT) 1st–15th - The OBBB expanded work requirements to adults 55–64 and parents of teens — if you were exempt before, check whether you still are - Wisconsin uses BBCE at 200% FPL — more households qualify than in standard states - Apply or recertify at ACCESS Wisconsin Benefits or call 1-800-362-3002 Wisconsin’s SNAP benefits load onto your QUEST Card (EBT) 1st–15th. The maximum for a family of four is $994 a month in fiscal year 2026, up from $975 last year. The open question now is what USDA sets for FY2027, expected in late summer. But 2026 is a more complicated year than most for SNAP. The One Big Beautiful Bill (OBBB) made some of the biggest cuts to the program in its history — and some Wisconsin residents who qualified last year may not qualify now. Here’s what changed, what you can expect to receive, and what to do if you’re denied. Covered in this Article: [Toggle](#) - [2026 SNAP Benefit Amounts in Wisconsin](#2026_SNAP_Benefit_Amounts_in_Wisconsin) - [When Does SNAP Deposit to Your Wisconsin EBT Card?](#When_Does_SNAP_Deposit_to_Your_Wisconsin_EBT_Card) - [What’s Changed in 2026: OBBB Work Requirements](#Whats_Changed_in_2026_OBBB_Work_Requirements) - [How to Qualify for Wisconsin SNAP in 2026](#How_to_Qualify_for_Wisconsin_SNAP_in_2026) - [How to Apply](#How_to_Apply) - [What to Do If Your Wisconsin SNAP Application Is Denied](#What_to_Do_If_Your_Wisconsin_SNAP_Application_Is_Denied) - [What to Watch: Potential SNAP Changes Ahead](#What_to_Watch_Potential_SNAP_Changes_Ahead) - [Where Can You Use Your Wisconsin EBT Card?](#Where_Can_You_Use_Your_Wisconsin_EBT_Card) - [Other Benefits If You Receive Wisconsin SNAP](#Other_Benefits_If_You_Receive_Wisconsin_SNAP) - [Wisconsin SNAP: How Benefits Have Changed (2023–2026)](#Wisconsin_SNAP_How_Benefits_Have_Changed_2023%E2%80%932026) ## 2026 SNAP Benefit Amounts in Wisconsin Wisconsin uses the standard federal SNAP benefit schedule. Maximum monthly allotments for FY2026 (October 1, 2025 – September 30, 2026): Household SizeMax Monthly BenefitGross Income Limit (200% FPL)Net Income Limit (100% FPL)1 person$298$2,510/mo$1,255/mo2 people$546$3,406/mo$1,703/mo3 people$785$4,304/mo$2,152/mo4 people$994$5,200/mo$2,600/mo5 people$1,183$6,098/mo$3,049/mo6 people$1,421$6,994/mo$3,497/mo7 people$1,571$7,890/mo$3,945/mo8+ people$1,791+—— **Wisconsin (WI) uses BBCE at 200% FPL** — significantly more generous than the 130% federal floor. A family of four can qualify with gross income up to **$5,200/month**, compared to just $3,380/month in the most restrictive states. Most households receive less than the maximum. Your actual benefit depends on net income after deductions (rent, utilities, child care, medical expenses for elderly or disabled members). ### How Much Would a Family of 4 Actually Receive in Wisconsin? Here are two realistic examples to show the range: **Scenario A — Lower-income family** A family of 4 with gross monthly income of **$1,500** (one parent working part-time): - Gross income: $1,500 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$300 - Net income: $983 - 30% of net income: $295 - **Monthly SNAP benefit: $994 − $295 = $699** **Scenario B — Working family (moderate income)** A family of 4 with gross monthly income of **$3,200**: - Gross income: $3,200 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$640 - Net income: $2,343 - 30% of net income: $703 - **Monthly SNAP benefit: $994 − $703 = $291** The 20% earned income deduction rewards working households. Additional deductions for excess shelter costs, child care, or medical expenses (elderly/disabled) can increase your benefit further. ## When Does SNAP Deposit to Your Wisconsin EBT Card? Wisconsin (WI) distributes SNAP benefits based on the **last digit of your case number**. Benefits load between the 1st–15th each month: Case # Last DigitDeposit Date11st23rd34th46th57th69th710th812th913th015th Your case number is on your approval letter or available through [ACCESS Wisconsin Benefits](https://access.wisconsin.gov). Call **1-800-362-3002** if you’re unsure of your deposit date — it stays the same each month once you’re approved. TANF cash benefits (if applicable) follow a separate deposit schedule. ## What’s Changed in 2026: OBBB Work Requirements The OBBB made several significant changes that took effect in late 2025 and early 2026: **Expanded work requirements**: Adults aged **55–64** who are able to work are now subject to SNAP work requirements for the first time. Previously the cutoff was 49. Parents whose youngest child is **over 14** are also now subject to work rules. **20 hours per week or 80 hours per month** — that’s the threshold for Able-Bodied Adults Without Dependents (ABAWDs) aged 18–64. Work, job training, or approved volunteer activity all count. Fail to meet the requirement and benefits are limited to **3 months in any 36-month period**. **State cost-sharing starting in 2028**: States will begin paying a share of benefit costs based on their SNAP payment error rate. This is new territory for all state budgets. **$186 billion in total federal SNAP cuts** over the next decade. If you were receiving SNAP in 2024 and haven’t recertified recently, check your current eligibility — the rules have shifted. ## How to Qualify for Wisconsin SNAP in 2026 **Income**: Gross income must be at or below 200% FPL (see table above). Net income (after deductions) must be at or below 100% FPL. **Residency**: Must be a Wisconsin resident. **Citizenship**: U.S. citizens and certain lawfully present immigrants qualify. Undocumented individuals are not eligible for federal SNAP benefits. **Work requirements**: Most able-bodied adults 18–64 must register for work and accept suitable employment. ABAWDs must meet the 80-hour/month work, training, or volunteer threshold. New in 2026: adults 55–64 are now included. ## How to Apply - **Online**: [ACCESS Wisconsin Benefits](https://access.wisconsin.gov) — fastest option, available 24/7 - **In person**: Any local Wisconsin Department of Health Services office - **Phone**: 1-800-362-3002 Wisconsin has up to **30 days** to process your application — or **7 days** if you qualify for expedited SNAP (very low income or resources). Benefits are backdated to your application date. Things can shift quickly. I’ll update this page when anything changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What to Do If Your Wisconsin SNAP Application Is Denied Denials are common and often appealable. The most frequent reasons are income slightly over the stated limit, missing documentation, and work requirement issues — all of which can be addressed. **Step 1**: Read your denial notice carefully. Wisconsin is required to explain the specific reason in writing. **Step 2**: Gather documentation that addresses the reason — recent pay stubs, rent receipts, proof of work activities, or a letter from your employer if hours changed. **Step 3**: Request a fair hearing within **90 days** of your denial. You can request one online at [ACCESS Wisconsin Benefits](https://access.wisconsin.gov), in person at your local Wisconsin Department of Health Services office, or by calling **1-800-362-3002**. **Step 4**: While your appeal is pending, you can continue receiving benefits if you were previously approved — request continued benefits when you file your hearing request. --- ## What to Watch: Potential SNAP Changes Ahead **State cost-sharing (FY2027–2028)**: Starting in FY2027, Wisconsin will begin paying a share of SNAP benefit costs — a first for all states. The percentage depends on Wisconsin’s payment error rate. If cost pressure builds, expect tighter eligibility administration at the state level. **Work requirement enforcement**: Federal guidance on the expanded age 55–64 rules is still evolving. States are implementing these in phases — if you’re in the newly covered age range, check with your caseworker. **BBCE at risk**: Wisconsin’s 200% FPL income limit narrowly survived the OBBB — earlier versions of the legislation would have eliminated it. If BBCE is eliminated in future legislation, the income limit for a family of 4 would drop from $5,200/month to $3,380/month. **FY2027 COLA adjustment**: Benefits update October 1. I’ll post FY2027 amounts here when USDA releases them (typically late summer 2026). Things can shift quickly — [Subscribe or follow us ↗](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates. --- ## Where Can You Use Your Wisconsin EBT Card? **In stores**: Any USDA-authorized retailer — including Walmart, Pick ‘n Save, Roundy’s, ALDI, Festival Foods, Woodman’s, and most independent grocery stores. Look for the EBT/SNAP sign at checkout. **Online**: Wisconsin SNAP recipients can shop online through **Amazon Fresh** and **Walmart Grocery** — select SNAP/EBT as your payment method at checkout. Delivery fees are not covered by SNAP (only the groceries themselves). **Farmers markets**: Many Wisconsin farmers markets accept EBT. Some participate in the Double Up Food Bucks program, which matches SNAP dollars on locally-grown produce. **What SNAP does NOT cover**: Alcohol, tobacco, vitamins/supplements, hot prepared foods, fast food, pet food, household supplies, or hygiene products. Wisconsin brands its SNAP program as **FoodShare Wisconsin**. Benefits are identical to federal SNAP and load to the QUEST Card. ## Other Benefits If You Receive Wisconsin SNAP SNAP often unlocks access to other programs: - **Medicaid / CHIP**: Receiving SNAP can streamline Medicaid enrollment for adults and children. Apply through [ACCESS Wisconsin Benefits](https://access.wisconsin.gov). - **LIHEAP**: Low Income Home Energy Assistance helps with utility bills. Contact your local community action agency or call 2-1-1. - **WIC**: Nutrition support for pregnant women, new mothers, and children under 5. Separate application through your state health department. - **Summer EBT (SUN Bucks)**: Extra food benefits for school-age children during summer months. Check with your state for 2026 enrollment. - **Free/reduced school meals**: SNAP households automatically qualify. Register through your child’s school district. For a full overview of federal SNAP amounts and recent cuts, see the [2026 SNAP benefits guide](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). See also: [Wisconsin unemployment benefit amounts and eligibility rules](https://savingtoinvest.com/wisconsin-unemployment-insurance-benefits-help-and-enhanced-ui-programs-pua-peuc-fpuc-status-and-information/). --- ## Wisconsin SNAP: How Benefits Have Changed (2023–2026) PeriodMax Benefit (Family of 4)Key DevelopmentFY2023 (Oct 2022 – Sep 2023)$939/monthPandemic Emergency Allotments ended — biggest single drop since the pandemicFY2024 (Oct 2023 – Sep 2024)$973/month~3.7% COLA increase; first full year post-pandemicFY2025 (Oct 2024 – Sep 2025)$975/monthMinimal ~0.2% increase; OBBB signed into lawFY2026 (Oct 2025 – Sep 2026)$994/month~2% increase; expanded work requirements take effect The end of Emergency Allotments in early 2023 was the biggest disruption in recent memory — some households that had received the maximum saw benefits drop to $23/month. FY2026 numbers are all standard formula, no pandemic additions. Frequently Asked Questions QHow much is SNAP in Wisconsin in 2026? AThe maximum monthly SNAP benefit in Wisconsin (WI) for FY2026 is $298 for a single person, $546 for 2 people, $785 for 3 people, $994 for a family of 4, and $1,183 for 5 people. Most households receive less than the maximum based on net income after deductions. QWhen does SNAP deposit to my Wisconsin EBT card? ABenefits load 1st–15th. Check your approval letter or ACCESS Wisconsin Benefits for your exact deposit date. QWhat are the income limits for Wisconsin SNAP in 2026? AWisconsin uses a gross income limit of 200% FPL — approximately $2,510/month for a single person or $5,200/month for a family of four. Net income (after deductions) must be at or below 100% FPL. QHow do I apply for SNAP in Wisconsin? AApply online at https://access.wisconsin.gov, in person at a local Wisconsin Department of Health Services (DHS) office, or by calling 1-800-362-3002. Processing takes up to 30 days, or 7 days if you qualify for expedited benefits. QWhat can I buy with my Wisconsin EBT card? ASNAP covers groceries including produce, meat, dairy, bread, cereals, and packaged foods. You can shop in-store at most major grocery chains and online through Amazon Fresh and Walmart Grocery. SNAP does not cover alcohol, tobacco, hot prepared foods, vitamins, or non-food household items. QWhat do I do if my Wisconsin SNAP application is denied? ARequest a fair hearing within 90 days of your denial notice. Apply online at https://access.wisconsin.gov, in person at a local office, or by calling 1-800-362-3002. The agency must explain the specific reason for denial — gather documentation addressing that reason before your hearing. QDid SNAP benefits change in 2026? AYes. The One Big Beautiful Bill (OBBB) expanded work requirements to include adults aged 55–64 and parents of children over 14. It cuts federal SNAP funding by $186 billion over 10 years and shifts some benefit costs to states starting in 2028. QCan I use my Wisconsin EBT card at Walmart or Amazon? AYes to both. Walmart accepts Wisconsin EBT in-store and online at walmart.com. Amazon Fresh also accepts SNAP/EBT online — select it as your payment method at checkout. Delivery fees are not covered, only eligible food items. **Categories:** Taxes and Retirement --- ### [West Virginia SNAP Benefits: 2027 Outlook, Current 2026 Amounts Up to $994/Month](https://savingtoinvest.com/west-virginia-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) **Published:** June 22, 2026 **Author:** Andy **Content:** ### Key Takeaways - FY2026 max SNAP benefit: $298/month for 1 person, $994/month for a family of 4 - Benefits load on your West Virginia EBT Card 1st–9th - The OBBB expanded work requirements to adults 55–64 and parents of teens — if you were exempt before, check whether you still are - West Virginia uses BBCE at 200% FPL — more households qualify than in standard states - Apply or recertify at West Virginia DHS Benefits or call 304-558-0684 or 2-1-1 West Virginia DHS Benefits handles SNAP applications and recertifications in West Virginia, with benefits loading onto the West Virginia EBT Card 1st–9th. Fiscal year 2026’s maximum for a family of four is $994 a month, up $19 from last year’s $975. The open question now is what USDA sets for FY2027, expected in late summer. But 2026 is a more complicated year than most for SNAP. The One Big Beautiful Bill (OBBB) made some of the biggest cuts to the program in its history — and some West Virginia residents who qualified last year may not qualify now. Here’s what changed, what you can expect to receive, and what to do if you’re denied. Covered in this Article: [Toggle](#) - [2026 SNAP Benefit Amounts in West Virginia](#2026_SNAP_Benefit_Amounts_in_West_Virginia) - [When Does SNAP Deposit to Your West Virginia EBT Card?](#When_Does_SNAP_Deposit_to_Your_West_Virginia_EBT_Card) - [What’s Changed in 2026: OBBB Work Requirements](#Whats_Changed_in_2026_OBBB_Work_Requirements) - [How to Qualify for West Virginia SNAP in 2026](#How_to_Qualify_for_West_Virginia_SNAP_in_2026) - [How to Apply](#How_to_Apply) - [What to Do If Your West Virginia SNAP Application Is Denied](#What_to_Do_If_Your_West_Virginia_SNAP_Application_Is_Denied) - [What to Watch: Potential SNAP Changes Ahead](#What_to_Watch_Potential_SNAP_Changes_Ahead) - [Where Can You Use Your West Virginia EBT Card?](#Where_Can_You_Use_Your_West_Virginia_EBT_Card) - [Other Benefits If You Receive West Virginia SNAP](#Other_Benefits_If_You_Receive_West_Virginia_SNAP) - [West Virginia SNAP: How Benefits Have Changed (2023–2026)](#West_Virginia_SNAP_How_Benefits_Have_Changed_2023%E2%80%932026) ## 2026 SNAP Benefit Amounts in West Virginia West Virginia uses the standard federal SNAP benefit schedule. Maximum monthly allotments for FY2026 (October 1, 2025 – September 30, 2026): Household SizeMax Monthly BenefitGross Income Limit (200% FPL)Net Income Limit (100% FPL)1 person$298$2,510/mo$1,255/mo2 people$546$3,406/mo$1,703/mo3 people$785$4,304/mo$2,152/mo4 people$994$5,200/mo$2,600/mo5 people$1,183$6,098/mo$3,049/mo6 people$1,421$6,994/mo$3,497/mo7 people$1,571$7,890/mo$3,945/mo8+ people$1,791+—— **West Virginia (WV) uses BBCE at 200% FPL** — significantly more generous than the 130% federal floor. A family of four can qualify with gross income up to **$5,200/month**, compared to just $3,380/month in the most restrictive states. Most households receive less than the maximum. Your actual benefit depends on net income after deductions (rent, utilities, child care, medical expenses for elderly or disabled members). ### How Much Would a Family of 4 Actually Receive in West Virginia? Here are two realistic examples to show the range: **Scenario A — Lower-income family** A family of 4 with gross monthly income of **$1,500** (one parent working part-time): - Gross income: $1,500 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$300 - Net income: $983 - 30% of net income: $295 - **Monthly SNAP benefit: $994 − $295 = $699** **Scenario B — Working family (moderate income)** A family of 4 with gross monthly income of **$3,200**: - Gross income: $3,200 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$640 - Net income: $2,343 - 30% of net income: $703 - **Monthly SNAP benefit: $994 − $703 = $291** The 20% earned income deduction rewards working households. Additional deductions for excess shelter costs, child care, or medical expenses (elderly/disabled) can increase your benefit further. ## When Does SNAP Deposit to Your West Virginia EBT Card? West Virginia (WV) distributes SNAP benefits based on the **last digit of your case number**. Benefits load between the 1st–9th each month: Case # Last DigitDeposit Date11st22nd33rd44th55th65th76th87th98th09th Your case number is on your approval letter or available through [West Virginia DHS Benefits](https://dhhr.wv.gov/bcf/snap). Call **304-558-0684 or 2-1-1** if you’re unsure of your deposit date — it stays the same each month once you’re approved. TANF cash benefits (if applicable) follow a separate deposit schedule. ## What’s Changed in 2026: OBBB Work Requirements The OBBB made several significant changes that took effect in late 2025 and early 2026: **Expanded work requirements**: Adults aged **55–64** who are able to work are now subject to SNAP work requirements for the first time. Previously the cutoff was 49. Parents whose youngest child is **over 14** are also now subject to work rules. **20 hours per week or 80 hours per month** — that’s the threshold for Able-Bodied Adults Without Dependents (ABAWDs) aged 18–64. Work, job training, or approved volunteer activity all count. Fail to meet the requirement and benefits are limited to **3 months in any 36-month period**. **State cost-sharing starting in 2028**: States will begin paying a share of benefit costs based on their SNAP payment error rate. This is new territory for all state budgets. **$186 billion in total federal SNAP cuts** over the next decade. If you were receiving SNAP in 2024 and haven’t recertified recently, check your current eligibility — the rules have shifted. ## How to Qualify for West Virginia SNAP in 2026 **Income**: Gross income must be at or below 200% FPL (see table above). Net income (after deductions) must be at or below 100% FPL. **Residency**: Must be a West Virginia resident. **Citizenship**: U.S. citizens and certain lawfully present immigrants qualify. Undocumented individuals are not eligible for federal SNAP benefits. **Work requirements**: Most able-bodied adults 18–64 must register for work and accept suitable employment. ABAWDs must meet the 80-hour/month work, training, or volunteer threshold. New in 2026: adults 55–64 are now included. ## How to Apply - **Online**: [West Virginia DHS Benefits](https://dhhr.wv.gov/bcf/snap) — fastest option, available 24/7 - **In person**: Any local West Virginia Department of Human Services office - **Phone**: 304-558-0684 or 2-1-1 West Virginia has up to **30 days** to process your application — or **7 days** if you qualify for expedited SNAP (very low income or resources). Benefits are backdated to your application date. Things can shift quickly. I’ll update this page when anything changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What to Do If Your West Virginia SNAP Application Is Denied Denials are common and often appealable. The most frequent reasons are income slightly over the stated limit, missing documentation, and work requirement issues — all of which can be addressed. **Step 1**: Read your denial notice carefully. West Virginia is required to explain the specific reason in writing. **Step 2**: Gather documentation that addresses the reason — recent pay stubs, rent receipts, proof of work activities, or a letter from your employer if hours changed. **Step 3**: Request a fair hearing within **90 days** of your denial. You can request one online at [West Virginia DHS Benefits](https://dhhr.wv.gov/bcf/snap), in person at your local West Virginia Department of Human Services office, or by calling **304-558-0684 or 2-1-1**. **Step 4**: While your appeal is pending, you can continue receiving benefits if you were previously approved — request continued benefits when you file your hearing request. --- ## What to Watch: Potential SNAP Changes Ahead **State cost-sharing (FY2027–2028)**: Starting in FY2027, West Virginia will begin paying a share of SNAP benefit costs — a first for all states. The percentage depends on West Virginia’s payment error rate. If cost pressure builds, expect tighter eligibility administration at the state level. **Work requirement enforcement**: Federal guidance on the expanded age 55–64 rules is still evolving. States are implementing these in phases — if you’re in the newly covered age range, check with your caseworker. **BBCE at risk**: West Virginia’s 200% FPL income limit narrowly survived the OBBB — earlier versions of the legislation would have eliminated it. If BBCE is eliminated in future legislation, the income limit for a family of 4 would drop from $5,200/month to $3,380/month. **FY2027 COLA adjustment**: Benefits update October 1. I’ll post FY2027 amounts here when USDA releases them (typically late summer 2026). Things can shift quickly — [Subscribe or follow us ↗](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates. --- ## Where Can You Use Your West Virginia EBT Card? **In stores**: Any USDA-authorized retailer — including Walmart, Kroger, Food Lion, Aldi, Foodland, and most independent grocery stores. Look for the EBT/SNAP sign at checkout. **Online**: West Virginia SNAP recipients can shop online through **Amazon Fresh** and **Walmart Grocery** — select SNAP/EBT as your payment method at checkout. Delivery fees are not covered by SNAP (only the groceries themselves). **Farmers markets**: Many West Virginia farmers markets accept EBT. Some participate in the Double Up Food Bucks program, which matches SNAP dollars on locally-grown produce. **What SNAP does NOT cover**: Alcohol, tobacco, vitamins/supplements, hot prepared foods, fast food, pet food, household supplies, or hygiene products. ## Other Benefits If You Receive West Virginia SNAP SNAP often unlocks access to other programs: - **Medicaid / CHIP**: Receiving SNAP can streamline Medicaid enrollment for adults and children. Apply through [West Virginia DHS Benefits](https://dhhr.wv.gov/bcf/snap). - **LIHEAP**: Low Income Home Energy Assistance helps with utility bills. Contact your local community action agency or call 2-1-1. - **WIC**: Nutrition support for pregnant women, new mothers, and children under 5. Separate application through your state health department. - **Summer EBT (SUN Bucks)**: Extra food benefits for school-age children during summer months. Check with your state for 2026 enrollment. - **Free/reduced school meals**: SNAP households automatically qualify. Register through your child’s school district. For a full overview of federal SNAP amounts and recent cuts, see the [2026 SNAP benefits guide](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). See also: [West Virginia unemployment benefit amounts and eligibility rules](https://savingtoinvest.com/west-virginia-unemployment-benefits/). --- ## West Virginia SNAP: How Benefits Have Changed (2023–2026) PeriodMax Benefit (Family of 4)Key DevelopmentFY2023 (Oct 2022 – Sep 2023)$939/monthPandemic Emergency Allotments ended — biggest single drop since the pandemicFY2024 (Oct 2023 – Sep 2024)$973/month~3.7% COLA increase; first full year post-pandemicFY2025 (Oct 2024 – Sep 2025)$975/monthMinimal ~0.2% increase; OBBB signed into lawFY2026 (Oct 2025 – Sep 2026)$994/month~2% increase; expanded work requirements take effect The end of Emergency Allotments in early 2023 was the biggest disruption in recent memory — some households that had received the maximum saw benefits drop to $23/month. FY2026 numbers are all standard formula, no pandemic additions. Frequently Asked Questions QHow much is SNAP in West Virginia in 2026? AThe maximum monthly SNAP benefit in West Virginia (WV) for FY2026 is $298 for a single person, $546 for 2 people, $785 for 3 people, $994 for a family of 4, and $1,183 for 5 people. Most households receive less than the maximum based on net income after deductions. QWhen does SNAP deposit to my West Virginia EBT card? ABenefits load 1st–9th. Check your approval letter or West Virginia DHS Benefits for your exact deposit date. QWhat are the income limits for West Virginia SNAP in 2026? AWest Virginia uses a gross income limit of 200% FPL — approximately $2,510/month for a single person or $5,200/month for a family of four. Net income (after deductions) must be at or below 100% FPL. QHow do I apply for SNAP in West Virginia? AApply online at https://dhhr.wv.gov/bcf/snap, in person at a local West Virginia Department of Human Services (DHS) office, or by calling 304-558-0684 or 2-1-1. Processing takes up to 30 days, or 7 days if you qualify for expedited benefits. QWhat can I buy with my West Virginia EBT card? ASNAP covers groceries including produce, meat, dairy, bread, cereals, and packaged foods. You can shop in-store at most major grocery chains and online through Amazon Fresh and Walmart Grocery. SNAP does not cover alcohol, tobacco, hot prepared foods, vitamins, or non-food household items. QWhat do I do if my West Virginia SNAP application is denied? ARequest a fair hearing within 90 days of your denial notice. Apply online at https://dhhr.wv.gov/bcf/snap, in person at a local office, or by calling 304-558-0684 or 2-1-1. The agency must explain the specific reason for denial — gather documentation addressing that reason before your hearing. QDid SNAP benefits change in 2026? AYes. The One Big Beautiful Bill (OBBB) expanded work requirements to include adults aged 55–64 and parents of children over 14. It cuts federal SNAP funding by $186 billion over 10 years and shifts some benefit costs to states starting in 2028. QCan I use my West Virginia EBT card at Walmart or Amazon? AYes to both. Walmart accepts West Virginia EBT in-store and online at walmart.com. Amazon Fresh also accepts SNAP/EBT online — select it as your payment method at checkout. Delivery fees are not covered, only eligible food items. **Categories:** Taxes and Retirement --- ### [Washington SNAP Benefits: 2027 Outlook, Current 2026 Amounts Up to $994/Month](https://savingtoinvest.com/washington-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) **Published:** June 22, 2026 **Author:** Andy **Content:** ### Key Takeaways - FY2026 max SNAP benefit: $298/month for 1 person, $994/month for a family of 4 - Benefits load on your Washington EBT Card 1st–20th - The OBBB expanded work requirements to adults 55–64 and parents of teens — if you were exempt before, check whether you still are - Washington uses BBCE at 200% FPL — more households qualify than in standard states - Apply or recertify at Washington Connection Benefits Portal or call 1-877-501-2233 Washington benefits go out on the Washington EBT Card 1st–20th, and Washington uses Broad-Based Categorical Eligibility at 200% of the poverty line, so more households qualify here than in states that stick to the federal floor. The max for a family of four in fiscal year 2026 is $994 a month, up from $975 last year. The open question now is what USDA sets for FY2027, expected in late summer. But 2026 is a more complicated year than most for SNAP. The One Big Beautiful Bill (OBBB) made some of the biggest cuts to the program in its history — and some Washington residents who qualified last year may not qualify now. Here’s what changed, what you can expect to receive, and what to do if you’re denied. Covered in this Article: [Toggle](#) - [2026 SNAP Benefit Amounts in Washington](#2026_SNAP_Benefit_Amounts_in_Washington) - [When Does SNAP Deposit to Your Washington EBT Card?](#When_Does_SNAP_Deposit_to_Your_Washington_EBT_Card) - [What’s Changed in 2026: OBBB Work Requirements](#Whats_Changed_in_2026_OBBB_Work_Requirements) - [How to Qualify for Washington SNAP in 2026](#How_to_Qualify_for_Washington_SNAP_in_2026) - [How to Apply](#How_to_Apply) - [What to Do If Your Washington SNAP Application Is Denied](#What_to_Do_If_Your_Washington_SNAP_Application_Is_Denied) - [What to Watch: Potential SNAP Changes Ahead](#What_to_Watch_Potential_SNAP_Changes_Ahead) - [Where Can You Use Your Washington EBT Card?](#Where_Can_You_Use_Your_Washington_EBT_Card) - [Other Benefits If You Receive Washington SNAP](#Other_Benefits_If_You_Receive_Washington_SNAP) - [Washington SNAP: How Benefits Have Changed (2023–2026)](#Washington_SNAP_How_Benefits_Have_Changed_2023%E2%80%932026) ## 2026 SNAP Benefit Amounts in Washington Washington uses the standard federal SNAP benefit schedule. Maximum monthly allotments for FY2026 (October 1, 2025 – September 30, 2026): Household SizeMax Monthly BenefitGross Income Limit (200% FPL)Net Income Limit (100% FPL)1 person$298$2,510/mo$1,255/mo2 people$546$3,406/mo$1,703/mo3 people$785$4,304/mo$2,152/mo4 people$994$5,200/mo$2,600/mo5 people$1,183$6,098/mo$3,049/mo6 people$1,421$6,994/mo$3,497/mo7 people$1,571$7,890/mo$3,945/mo8+ people$1,791+—— **Washington (WA) uses BBCE at 200% FPL** — significantly more generous than the 130% federal floor. A family of four can qualify with gross income up to **$5,200/month**, compared to just $3,380/month in the most restrictive states. Most households receive less than the maximum. Your actual benefit depends on net income after deductions (rent, utilities, child care, medical expenses for elderly or disabled members). ### How Much Would a Family of 4 Actually Receive in Washington? Here are two realistic examples to show the range: **Scenario A — Lower-income family** A family of 4 with gross monthly income of **$1,500** (one parent working part-time): - Gross income: $1,500 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$300 - Net income: $983 - 30% of net income: $295 - **Monthly SNAP benefit: $994 − $295 = $699** **Scenario B — Working family (moderate income)** A family of 4 with gross monthly income of **$3,200**: - Gross income: $3,200 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$640 - Net income: $2,343 - 30% of net income: $703 - **Monthly SNAP benefit: $994 − $703 = $291** The 20% earned income deduction rewards working households. Additional deductions for excess shelter costs, child care, or medical expenses (elderly/disabled) can increase your benefit further. ## When Does SNAP Deposit to Your Washington EBT Card? Washington (WA) distributes SNAP benefits based on the **last digit of your case number**. Benefits load between the 1st–20th each month: Case # Last DigitDeposit Date11st23rd35th47th59th612th714th816th918th020th Your case number is on your approval letter or available through [Washington Connection Benefits Portal](https://www.washingtonconnection.org). Call **1-877-501-2233** if you’re unsure of your deposit date — it stays the same each month once you’re approved. TANF cash benefits (if applicable) follow a separate deposit schedule. ## What’s Changed in 2026: OBBB Work Requirements The OBBB made several significant changes that took effect in late 2025 and early 2026: **Expanded work requirements**: Adults aged **55–64** who are able to work are now subject to SNAP work requirements for the first time. Previously the cutoff was 49. Parents whose youngest child is **over 14** are also now subject to work rules. **20 hours per week or 80 hours per month** — that’s the threshold for Able-Bodied Adults Without Dependents (ABAWDs) aged 18–64. Work, job training, or approved volunteer activity all count. Fail to meet the requirement and benefits are limited to **3 months in any 36-month period**. **State cost-sharing starting in 2028**: States will begin paying a share of benefit costs based on their SNAP payment error rate. This is new territory for all state budgets. **$186 billion in total federal SNAP cuts** over the next decade. If you were receiving SNAP in 2024 and haven’t recertified recently, check your current eligibility — the rules have shifted. ## How to Qualify for Washington SNAP in 2026 **Income**: Gross income must be at or below 200% FPL (see table above). Net income (after deductions) must be at or below 100% FPL. **Residency**: Must be a Washington resident. **Citizenship**: U.S. citizens and certain lawfully present immigrants qualify. Undocumented individuals are not eligible for federal SNAP benefits. **Work requirements**: Most able-bodied adults 18–64 must register for work and accept suitable employment. ABAWDs must meet the 80-hour/month work, training, or volunteer threshold. New in 2026: adults 55–64 are now included. ## How to Apply - **Online**: [Washington Connection Benefits Portal](https://www.washingtonconnection.org) — fastest option, available 24/7 - **In person**: Any local Washington State Department of Social and Health Services office - **Phone**: 1-877-501-2233 Washington has up to **30 days** to process your application — or **7 days** if you qualify for expedited SNAP (very low income or resources). Benefits are backdated to your application date. Things can shift quickly. I’ll update this page when anything changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What to Do If Your Washington SNAP Application Is Denied Denials are common and often appealable. The most frequent reasons are income slightly over the stated limit, missing documentation, and work requirement issues — all of which can be addressed. **Step 1**: Read your denial notice carefully. Washington is required to explain the specific reason in writing. **Step 2**: Gather documentation that addresses the reason — recent pay stubs, rent receipts, proof of work activities, or a letter from your employer if hours changed. **Step 3**: Request a fair hearing within **90 days** of your denial. You can request one online at [Washington Connection Benefits Portal](https://www.washingtonconnection.org), in person at your local Washington State Department of Social and Health Services office, or by calling **1-877-501-2233**. **Step 4**: While your appeal is pending, you can continue receiving benefits if you were previously approved — request continued benefits when you file your hearing request. --- ## What to Watch: Potential SNAP Changes Ahead **State cost-sharing (FY2027–2028)**: Starting in FY2027, Washington will begin paying a share of SNAP benefit costs — a first for all states. The percentage depends on Washington’s payment error rate. If cost pressure builds, expect tighter eligibility administration at the state level. **Work requirement enforcement**: Federal guidance on the expanded age 55–64 rules is still evolving. States are implementing these in phases — if you’re in the newly covered age range, check with your caseworker. **BBCE at risk**: Washington’s 200% FPL income limit narrowly survived the OBBB — earlier versions of the legislation would have eliminated it. If BBCE is eliminated in future legislation, the income limit for a family of 4 would drop from $5,200/month to $3,380/month. **FY2027 COLA adjustment**: Benefits update October 1. I’ll post FY2027 amounts here when USDA releases them (typically late summer 2026). Things can shift quickly — [Subscribe or follow us ↗](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates. --- ## Where Can You Use Your Washington EBT Card? **In stores**: Any USDA-authorized retailer — including Walmart, Fred Meyer, Safeway, QFC, WinCo Foods, Grocery Outlet, PCC Markets, and most independent grocery stores. Look for the EBT/SNAP sign at checkout. **Online**: Washington SNAP recipients can shop online through **Amazon Fresh** and **Walmart Grocery** — select SNAP/EBT as your payment method at checkout. Delivery fees are not covered by SNAP (only the groceries themselves). **Farmers markets**: Many Washington farmers markets accept EBT. Some participate in the Double Up Food Bucks program, which matches SNAP dollars on locally-grown produce. **What SNAP does NOT cover**: Alcohol, tobacco, vitamins/supplements, hot prepared foods, fast food, pet food, household supplies, or hygiene products. ## Other Benefits If You Receive Washington SNAP SNAP often unlocks access to other programs: - **Medicaid / CHIP**: Receiving SNAP can streamline Medicaid enrollment for adults and children. Apply through [Washington Connection Benefits Portal](https://www.washingtonconnection.org). - **LIHEAP**: Low Income Home Energy Assistance helps with utility bills. Contact your local community action agency or call 2-1-1. - **WIC**: Nutrition support for pregnant women, new mothers, and children under 5. Separate application through your state health department. - **Summer EBT (SUN Bucks)**: Extra food benefits for school-age children during summer months. Check with your state for 2026 enrollment. - **Free/reduced school meals**: SNAP households automatically qualify. Register through your child’s school district. For a full overview of federal SNAP amounts and recent cuts, see the [2026 SNAP benefits guide](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). See also: [Washington unemployment benefit amounts and eligibility rules](https://savingtoinvest.com/washington-state-unemployment-benefits/). --- ## Washington SNAP: How Benefits Have Changed (2023–2026) PeriodMax Benefit (Family of 4)Key DevelopmentFY2023 (Oct 2022 – Sep 2023)$939/monthPandemic Emergency Allotments ended — biggest single drop since the pandemicFY2024 (Oct 2023 – Sep 2024)$973/month~3.7% COLA increase; first full year post-pandemicFY2025 (Oct 2024 – Sep 2025)$975/monthMinimal ~0.2% increase; OBBB signed into lawFY2026 (Oct 2025 – Sep 2026)$994/month~2% increase; expanded work requirements take effect The end of Emergency Allotments in early 2023 was the biggest disruption in recent memory — some households that had received the maximum saw benefits drop to $23/month. FY2026 numbers are all standard formula, no pandemic additions. Frequently Asked Questions QHow much is SNAP in Washington in 2026? AThe maximum monthly SNAP benefit in Washington (WA) for FY2026 is $298 for a single person, $546 for 2 people, $785 for 3 people, $994 for a family of 4, and $1,183 for 5 people. Most households receive less than the maximum based on net income after deductions. QWhen does SNAP deposit to my Washington EBT card? ABenefits load 1st–20th. Check your approval letter or Washington Connection Benefits Portal for your exact deposit date. QWhat are the income limits for Washington SNAP in 2026? AWashington uses a gross income limit of 200% FPL — approximately $2,510/month for a single person or $5,200/month for a family of four. Net income (after deductions) must be at or below 100% FPL. QHow do I apply for SNAP in Washington? AApply online at https://www.washingtonconnection.org, in person at a local Washington State Department of Social and Health Services (DSHS) office, or by calling 1-877-501-2233. Processing takes up to 30 days, or 7 days if you qualify for expedited benefits. QWhat can I buy with my Washington EBT card? ASNAP covers groceries including produce, meat, dairy, bread, cereals, and packaged foods. You can shop in-store at most major grocery chains and online through Amazon Fresh and Walmart Grocery. SNAP does not cover alcohol, tobacco, hot prepared foods, vitamins, or non-food household items. QWhat do I do if my Washington SNAP application is denied? ARequest a fair hearing within 90 days of your denial notice. Apply online at https://www.washingtonconnection.org, in person at a local office, or by calling 1-877-501-2233. The agency must explain the specific reason for denial — gather documentation addressing that reason before your hearing. QDid SNAP benefits change in 2026? AYes. The One Big Beautiful Bill (OBBB) expanded work requirements to include adults aged 55–64 and parents of children over 14. It cuts federal SNAP funding by $186 billion over 10 years and shifts some benefit costs to states starting in 2028. QCan I use my Washington EBT card at Walmart or Amazon? AYes to both. Walmart accepts Washington EBT in-store and online at walmart.com. Amazon Fresh also accepts SNAP/EBT online — select it as your payment method at checkout. Delivery fees are not covered, only eligible food items. **Categories:** Taxes and Retirement --- ### [Virginia SNAP Benefits: 2027 Outlook, Current 2026 Amounts Up to $994/Month](https://savingtoinvest.com/virginia-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) **Published:** June 22, 2026 **Author:** Andy **Content:** ### Key Takeaways - FY2026 max SNAP benefit: $298/month for 1 person, $994/month for a family of 4 - Benefits load on your Virginia EBT Card 1st–7th - The OBBB expanded work requirements to adults 55–64 and parents of teens — if you were exempt before, check whether you still are - Virginia uses BBCE at 200% FPL — more households qualify than in standard states - Apply or recertify at CommonHelp Virginia or call 1-800-552-3431 If you’re applying for or renewing SNAP in Virginia, benefits load onto the Virginia EBT Card 1st–7th through CommonHelp Virginia. The fiscal year 2026 maximum for a family of four is $994 a month, up from $975 last year. The open question now is what USDA sets for FY2027, expected in late summer. But 2026 is a more complicated year than most for SNAP. The One Big Beautiful Bill (OBBB) made some of the biggest cuts to the program in its history — and some Virginia residents who qualified last year may not qualify now. Here’s what changed, what you can expect to receive, and what to do if you’re denied. Covered in this Article: [Toggle](#) - [2026 SNAP Benefit Amounts in Virginia](#2026_SNAP_Benefit_Amounts_in_Virginia) - [When Does SNAP Deposit to Your Virginia EBT Card?](#When_Does_SNAP_Deposit_to_Your_Virginia_EBT_Card) - [What’s Changed in 2026: OBBB Work Requirements](#Whats_Changed_in_2026_OBBB_Work_Requirements) - [How to Qualify for Virginia SNAP in 2026](#How_to_Qualify_for_Virginia_SNAP_in_2026) - [How to Apply](#How_to_Apply) - [What to Do If Your Virginia SNAP Application Is Denied](#What_to_Do_If_Your_Virginia_SNAP_Application_Is_Denied) - [What to Watch: Potential SNAP Changes Ahead](#What_to_Watch_Potential_SNAP_Changes_Ahead) - [Where Can You Use Your Virginia EBT Card?](#Where_Can_You_Use_Your_Virginia_EBT_Card) - [Other Benefits If You Receive Virginia SNAP](#Other_Benefits_If_You_Receive_Virginia_SNAP) - [Virginia SNAP: How Benefits Have Changed (2023–2026)](#Virginia_SNAP_How_Benefits_Have_Changed_2023%E2%80%932026) ## 2026 SNAP Benefit Amounts in Virginia Virginia uses the standard federal SNAP benefit schedule. Maximum monthly allotments for FY2026 (October 1, 2025 – September 30, 2026): Household SizeMax Monthly BenefitGross Income Limit (200% FPL)Net Income Limit (100% FPL)1 person$298$2,510/mo$1,255/mo2 people$546$3,406/mo$1,703/mo3 people$785$4,304/mo$2,152/mo4 people$994$5,200/mo$2,600/mo5 people$1,183$6,098/mo$3,049/mo6 people$1,421$6,994/mo$3,497/mo7 people$1,571$7,890/mo$3,945/mo8+ people$1,791+—— **Virginia (VA) uses BBCE at 200% FPL** — significantly more generous than the 130% federal floor. A family of four can qualify with gross income up to **$5,200/month**, compared to just $3,380/month in the most restrictive states. Most households receive less than the maximum. Your actual benefit depends on net income after deductions (rent, utilities, child care, medical expenses for elderly or disabled members). ### How Much Would a Family of 4 Actually Receive in Virginia? Here are two realistic examples to show the range: **Scenario A — Lower-income family** A family of 4 with gross monthly income of **$1,500** (one parent working part-time): - Gross income: $1,500 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$300 - Net income: $983 - 30% of net income: $295 - **Monthly SNAP benefit: $994 − $295 = $699** **Scenario B — Working family (moderate income)** A family of 4 with gross monthly income of **$3,200**: - Gross income: $3,200 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$640 - Net income: $2,343 - 30% of net income: $703 - **Monthly SNAP benefit: $994 − $703 = $291** The 20% earned income deduction rewards working households. Additional deductions for excess shelter costs, child care, or medical expenses (elderly/disabled) can increase your benefit further. ## When Does SNAP Deposit to Your Virginia EBT Card? Virginia (VA) distributes SNAP benefits based on the **last digit of your case number**. Benefits load between the 1st–7th each month: Case # Last DigitDeposit Date11st22nd32nd43rd54th64th75th86th96th07th Your case number is on your approval letter or available through [CommonHelp Virginia](https://commonhelp.virginia.gov). Call **1-800-552-3431** if you’re unsure of your deposit date — it stays the same each month once you’re approved. TANF cash benefits (if applicable) follow a separate deposit schedule. ## What’s Changed in 2026: OBBB Work Requirements The OBBB made several significant changes that took effect in late 2025 and early 2026: **Expanded work requirements**: Adults aged **55–64** who are able to work are now subject to SNAP work requirements for the first time. Previously the cutoff was 49. Parents whose youngest child is **over 14** are also now subject to work rules. **20 hours per week or 80 hours per month** — that’s the threshold for Able-Bodied Adults Without Dependents (ABAWDs) aged 18–64. Work, job training, or approved volunteer activity all count. Fail to meet the requirement and benefits are limited to **3 months in any 36-month period**. **State cost-sharing starting in 2028**: States will begin paying a share of benefit costs based on their SNAP payment error rate. This is new territory for all state budgets. **$186 billion in total federal SNAP cuts** over the next decade. If you were receiving SNAP in 2024 and haven’t recertified recently, check your current eligibility — the rules have shifted. ## How to Qualify for Virginia SNAP in 2026 **Income**: Gross income must be at or below 200% FPL (see table above). Net income (after deductions) must be at or below 100% FPL. **Residency**: Must be a Virginia resident. **Citizenship**: U.S. citizens and certain lawfully present immigrants qualify. Undocumented individuals are not eligible for federal SNAP benefits. **Work requirements**: Most able-bodied adults 18–64 must register for work and accept suitable employment. ABAWDs must meet the 80-hour/month work, training, or volunteer threshold. New in 2026: adults 55–64 are now included. ## How to Apply - **Online**: [CommonHelp Virginia](https://commonhelp.virginia.gov) — fastest option, available 24/7 - **In person**: Any local Virginia Department of Social Services office - **Phone**: 1-800-552-3431 Virginia has up to **30 days** to process your application — or **7 days** if you qualify for expedited SNAP (very low income or resources). Benefits are backdated to your application date. Things can shift quickly. I’ll update this page when anything changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What to Do If Your Virginia SNAP Application Is Denied Denials are common and often appealable. The most frequent reasons are income slightly over the stated limit, missing documentation, and work requirement issues — all of which can be addressed. **Step 1**: Read your denial notice carefully. Virginia is required to explain the specific reason in writing. **Step 2**: Gather documentation that addresses the reason — recent pay stubs, rent receipts, proof of work activities, or a letter from your employer if hours changed. **Step 3**: Request a fair hearing within **90 days** of your denial. You can request one online at [CommonHelp Virginia](https://commonhelp.virginia.gov), in person at your local Virginia Department of Social Services office, or by calling **1-800-552-3431**. **Step 4**: While your appeal is pending, you can continue receiving benefits if you were previously approved — request continued benefits when you file your hearing request. --- ## What to Watch: Potential SNAP Changes Ahead **State cost-sharing (FY2027–2028)**: Starting in FY2027, Virginia will begin paying a share of SNAP benefit costs — a first for all states. The percentage depends on Virginia’s payment error rate. If cost pressure builds, expect tighter eligibility administration at the state level. **Work requirement enforcement**: Federal guidance on the expanded age 55–64 rules is still evolving. States are implementing these in phases — if you’re in the newly covered age range, check with your caseworker. **BBCE at risk**: Virginia’s 200% FPL income limit narrowly survived the OBBB — earlier versions of the legislation would have eliminated it. If BBCE is eliminated in future legislation, the income limit for a family of 4 would drop from $5,200/month to $3,380/month. **FY2027 COLA adjustment**: Benefits update October 1. I’ll post FY2027 amounts here when USDA releases them (typically late summer 2026). Things can shift quickly — [Subscribe or follow us ↗](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates. --- ## Where Can You Use Your Virginia EBT Card? **In stores**: Any USDA-authorized retailer — including Walmart, Kroger, Harris Teeter, Food Lion, Giant Food, ALDI, Lidl, and most independent grocery stores. Look for the EBT/SNAP sign at checkout. **Online**: Virginia SNAP recipients can shop online through **Amazon Fresh** and **Walmart Grocery** — select SNAP/EBT as your payment method at checkout. Delivery fees are not covered by SNAP (only the groceries themselves). **Farmers markets**: Many Virginia farmers markets accept EBT. Some participate in the Double Up Food Bucks program, which matches SNAP dollars on locally-grown produce. **What SNAP does NOT cover**: Alcohol, tobacco, vitamins/supplements, hot prepared foods, fast food, pet food, household supplies, or hygiene products. ## Other Benefits If You Receive Virginia SNAP SNAP often unlocks access to other programs: - **Medicaid / CHIP**: Receiving SNAP can streamline Medicaid enrollment for adults and children. Apply through [CommonHelp Virginia](https://commonhelp.virginia.gov). - **LIHEAP**: Low Income Home Energy Assistance helps with utility bills. Contact your local community action agency or call 2-1-1. - **WIC**: Nutrition support for pregnant women, new mothers, and children under 5. Separate application through your state health department. - **Summer EBT (SUN Bucks)**: Extra food benefits for school-age children during summer months. Check with your state for 2026 enrollment. - **Free/reduced school meals**: SNAP households automatically qualify. Register through your child’s school district. For a full overview of federal SNAP amounts and recent cuts, see the [2026 SNAP benefits guide](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). See also: [Virginia unemployment benefit amounts and eligibility rules](https://savingtoinvest.com/virginia-vec-unemployment-benefits-news-and-updates-on-extended-benefit-programs-300-lwa-pua-peuc-and-600-fpuc/). --- ## Virginia SNAP: How Benefits Have Changed (2023–2026) PeriodMax Benefit (Family of 4)Key DevelopmentFY2023 (Oct 2022 – Sep 2023)$939/monthPandemic Emergency Allotments ended — biggest single drop since the pandemicFY2024 (Oct 2023 – Sep 2024)$973/month~3.7% COLA increase; first full year post-pandemicFY2025 (Oct 2024 – Sep 2025)$975/monthMinimal ~0.2% increase; OBBB signed into lawFY2026 (Oct 2025 – Sep 2026)$994/month~2% increase; expanded work requirements take effect The end of Emergency Allotments in early 2023 was the biggest disruption in recent memory — some households that had received the maximum saw benefits drop to $23/month. FY2026 numbers are all standard formula, no pandemic additions. Frequently Asked Questions QHow much is SNAP in Virginia in 2026? AThe maximum monthly SNAP benefit in Virginia (VA) for FY2026 is $298 for a single person, $546 for 2 people, $785 for 3 people, $994 for a family of 4, and $1,183 for 5 people. Most households receive less than the maximum based on net income after deductions. QWhen does SNAP deposit to my Virginia EBT card? ABenefits load 1st–7th. Check your approval letter or CommonHelp Virginia for your exact deposit date. QWhat are the income limits for Virginia SNAP in 2026? AVirginia uses a gross income limit of 200% FPL — approximately $2,510/month for a single person or $5,200/month for a family of four. Net income (after deductions) must be at or below 100% FPL. QHow do I apply for SNAP in Virginia? AApply online at https://commonhelp.virginia.gov, in person at a local Virginia Department of Social Services (VDSS) office, or by calling 1-800-552-3431. Processing takes up to 30 days, or 7 days if you qualify for expedited benefits. QWhat can I buy with my Virginia EBT card? ASNAP covers groceries including produce, meat, dairy, bread, cereals, and packaged foods. You can shop in-store at most major grocery chains and online through Amazon Fresh and Walmart Grocery. SNAP does not cover alcohol, tobacco, hot prepared foods, vitamins, or non-food household items. QWhat do I do if my Virginia SNAP application is denied? ARequest a fair hearing within 90 days of your denial notice. Apply online at https://commonhelp.virginia.gov, in person at a local office, or by calling 1-800-552-3431. The agency must explain the specific reason for denial — gather documentation addressing that reason before your hearing. QDid SNAP benefits change in 2026? AYes. The One Big Beautiful Bill (OBBB) expanded work requirements to include adults aged 55–64 and parents of children over 14. It cuts federal SNAP funding by $186 billion over 10 years and shifts some benefit costs to states starting in 2028. QCan I use my Virginia EBT card at Walmart or Amazon? AYes to both. Walmart accepts Virginia EBT in-store and online at walmart.com. Amazon Fresh also accepts SNAP/EBT online — select it as your payment method at checkout. Delivery fees are not covered, only eligible food items. **Categories:** Taxes and Retirement --- ### [Vermont SNAP Benefits: 2027 Outlook, Current 2026 Amounts Up to $994/Month](https://savingtoinvest.com/vermont-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) **Published:** June 22, 2026 **Author:** Andy **Content:** ### Key Takeaways - FY2026 max SNAP benefit: $298/month for 1 person, $994/month for a family of 4 - Benefits load on your Vermont EBT Card 1st (all recipients) - The OBBB expanded work requirements to adults 55–64 and parents of teens — if you were exempt before, check whether you still are - Vermont uses BBCE at 185% FPL — more households qualify than in standard states - Apply or recertify at Vermont DCF Benefits or call 1-800-479-6151 Vermont uses Broad-Based Categorical Eligibility at 185% of the poverty line, so more households qualify here than in states that stick to the federal floor. Either way, the fiscal year 2026 maximum benefit is the same nationwide: $994 a month for a family of four, up from $975 last year. The open question now is what USDA sets for FY2027, expected in late summer. But 2026 is a more complicated year than most for SNAP. The One Big Beautiful Bill (OBBB) made some of the biggest cuts to the program in its history — and some Vermont residents who qualified last year may not qualify now. Here’s what changed, what you can expect to receive, and what to do if you’re denied. Covered in this Article: [Toggle](#) - [2026 SNAP Benefit Amounts in Vermont](#2026_SNAP_Benefit_Amounts_in_Vermont) - [When Does SNAP Deposit to Your Vermont EBT Card?](#When_Does_SNAP_Deposit_to_Your_Vermont_EBT_Card) - [What’s Changed in 2026: OBBB Work Requirements](#Whats_Changed_in_2026_OBBB_Work_Requirements) - [How to Qualify for Vermont SNAP in 2026](#How_to_Qualify_for_Vermont_SNAP_in_2026) - [How to Apply](#How_to_Apply) - [What to Do If Your Vermont SNAP Application Is Denied](#What_to_Do_If_Your_Vermont_SNAP_Application_Is_Denied) - [What to Watch: Potential SNAP Changes Ahead](#What_to_Watch_Potential_SNAP_Changes_Ahead) - [Where Can You Use Your Vermont EBT Card?](#Where_Can_You_Use_Your_Vermont_EBT_Card) - [Other Benefits If You Receive Vermont SNAP](#Other_Benefits_If_You_Receive_Vermont_SNAP) - [Vermont SNAP: How Benefits Have Changed (2023–2026)](#Vermont_SNAP_How_Benefits_Have_Changed_2023%E2%80%932026) ## 2026 SNAP Benefit Amounts in Vermont Vermont uses the standard federal SNAP benefit schedule. Maximum monthly allotments for FY2026 (October 1, 2025 – September 30, 2026): Household SizeMax Monthly BenefitGross Income Limit (185% FPL)Net Income Limit (100% FPL)1 person$298$2,322/mo$1,255/mo2 people$546$3,151/mo$1,703/mo3 people$785$3,981/mo$2,152/mo4 people$994$4,810/mo$2,600/mo5 people$1,183$5,641/mo$3,049/mo6 people$1,421$6,469/mo$3,497/mo7 people$1,571$7,298/mo$3,945/mo8+ people$1,791+—— **Vermont (VT) uses BBCE at 185% FPL**, well above the federal floor. A family of four can qualify with gross income up to **$4,810/month** — about $1,430/month more than in non-BBCE states. Most households receive less than the maximum. Your actual benefit depends on net income after deductions (rent, utilities, child care, medical expenses for elderly or disabled members). ### How Much Would a Family of 4 Actually Receive in Vermont? Here are two realistic examples to show the range: **Scenario A — Lower-income family** A family of 4 with gross monthly income of **$1,500** (one parent working part-time): - Gross income: $1,500 ✓ (within $4,810/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$300 - Net income: $983 - 30% of net income: $295 - **Monthly SNAP benefit: $994 − $295 = $699** **Scenario B — Working family (moderate income)** A family of 4 with gross monthly income of **$2,500**: - Gross income: $2,500 ✓ (within $4,810/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$500 - Net income: $1,783 - 30% of net income: $535 - **Monthly SNAP benefit: $994 − $535 = $459** The 20% earned income deduction rewards working households. Additional deductions for excess shelter costs, child care, or medical expenses (elderly/disabled) can increase your benefit further. ## When Does SNAP Deposit to Your Vermont EBT Card? Vermont (VT) distributes SNAP benefits on a **fixed date** — benefits load on the **1st (all recipients)** for all recipients. Your benefit date is on your approval letter or at [Vermont DCF Benefits](https://dcf.vermont.gov/esd/3squares). TANF cash benefits (if applicable) follow a separate deposit schedule. ## What’s Changed in 2026: OBBB Work Requirements The OBBB made several significant changes that took effect in late 2025 and early 2026: **Expanded work requirements**: Adults aged **55–64** who are able to work are now subject to SNAP work requirements for the first time. Previously the cutoff was 49. Parents whose youngest child is **over 14** are also now subject to work rules. **20 hours per week or 80 hours per month** — that’s the threshold for Able-Bodied Adults Without Dependents (ABAWDs) aged 18–64. Work, job training, or approved volunteer activity all count. Fail to meet the requirement and benefits are limited to **3 months in any 36-month period**. **State cost-sharing starting in 2028**: States will begin paying a share of benefit costs based on their SNAP payment error rate. This is new territory for all state budgets. **$186 billion in total federal SNAP cuts** over the next decade. If you were receiving SNAP in 2024 and haven’t recertified recently, check your current eligibility — the rules have shifted. ## How to Qualify for Vermont SNAP in 2026 **Income**: Gross income must be at or below 185% FPL (see table above). Net income (after deductions) must be at or below 100% FPL. **Residency**: Must be a Vermont resident. **Citizenship**: U.S. citizens and certain lawfully present immigrants qualify. Undocumented individuals are not eligible for federal SNAP benefits. **Work requirements**: Most able-bodied adults 18–64 must register for work and accept suitable employment. ABAWDs must meet the 80-hour/month work, training, or volunteer threshold. New in 2026: adults 55–64 are now included. ## How to Apply - **Online**: [Vermont DCF Benefits](https://dcf.vermont.gov/esd/3squares) — fastest option, available 24/7 - **In person**: Any local Vermont Department for Children and Families office - **Phone**: 1-800-479-6151 Vermont has up to **30 days** to process your application — or **7 days** if you qualify for expedited SNAP (very low income or resources). Benefits are backdated to your application date. Things can shift quickly. I’ll update this page when anything changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What to Do If Your Vermont SNAP Application Is Denied Denials are common and often appealable. The most frequent reasons are income slightly over the stated limit, missing documentation, and work requirement issues — all of which can be addressed. **Step 1**: Read your denial notice carefully. Vermont is required to explain the specific reason in writing. **Step 2**: Gather documentation that addresses the reason — recent pay stubs, rent receipts, proof of work activities, or a letter from your employer if hours changed. **Step 3**: Request a fair hearing within **90 days** of your denial. You can request one online at [Vermont DCF Benefits](https://dcf.vermont.gov/esd/3squares), in person at your local Vermont Department for Children and Families office, or by calling **1-800-479-6151**. **Step 4**: While your appeal is pending, you can continue receiving benefits if you were previously approved — request continued benefits when you file your hearing request. --- ## What to Watch: Potential SNAP Changes Ahead **State cost-sharing (FY2027–2028)**: Starting in FY2027, Vermont will begin paying a share of SNAP benefit costs — a first for all states. The percentage depends on Vermont’s payment error rate. If cost pressure builds, expect tighter eligibility administration at the state level. **Work requirement enforcement**: Federal guidance on the expanded age 55–64 rules is still evolving. States are implementing these in phases — if you’re in the newly covered age range, check with your caseworker. **BBCE at risk**: Vermont’s 185% FPL income limit narrowly survived the OBBB — earlier versions of the legislation would have eliminated it. If BBCE is eliminated in future legislation, the income limit for a family of 4 would drop from $4,810/month to $3,380/month. **FY2027 COLA adjustment**: Benefits update October 1. I’ll post FY2027 amounts here when USDA releases them (typically late summer 2026). Things can shift quickly — [Subscribe or follow us ↗](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates. --- ## Where Can You Use Your Vermont EBT Card? **In stores**: Any USDA-authorized retailer — including Walmart, Hannaford, Shaw’s, Price Chopper, City Market, and most independent grocery stores. Look for the EBT/SNAP sign at checkout. **Online**: Vermont SNAP recipients can shop online through **Amazon Fresh** and **Walmart Grocery** — select SNAP/EBT as your payment method at checkout. Delivery fees are not covered by SNAP (only the groceries themselves). **Farmers markets**: Many Vermont farmers markets accept EBT. Some participate in the Double Up Food Bucks program, which matches SNAP dollars on locally-grown produce. **What SNAP does NOT cover**: Alcohol, tobacco, vitamins/supplements, hot prepared foods, fast food, pet food, household supplies, or hygiene products. Vermont brands its SNAP program as **3SquaresVT** — a reference to three meals a day. Benefits are identical to federal SNAP. ## Other Benefits If You Receive Vermont SNAP SNAP often unlocks access to other programs: - **Medicaid / CHIP**: Receiving SNAP can streamline Medicaid enrollment for adults and children. Apply through [Vermont DCF Benefits](https://dcf.vermont.gov/esd/3squares). - **LIHEAP**: Low Income Home Energy Assistance helps with utility bills. Contact your local community action agency or call 2-1-1. - **WIC**: Nutrition support for pregnant women, new mothers, and children under 5. Separate application through your state health department. - **Summer EBT (SUN Bucks)**: Extra food benefits for school-age children during summer months. Check with your state for 2026 enrollment. - **Free/reduced school meals**: SNAP households automatically qualify. Register through your child’s school district. For a full overview of federal SNAP amounts and recent cuts, see the [2026 SNAP benefits guide](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). See also: [Vermont unemployment benefit amounts and eligibility rules](https://savingtoinvest.com/vermont-unemployment-benefits/). --- ## Vermont SNAP: How Benefits Have Changed (2023–2026) PeriodMax Benefit (Family of 4)Key DevelopmentFY2023 (Oct 2022 – Sep 2023)$939/monthPandemic Emergency Allotments ended — biggest single drop since the pandemicFY2024 (Oct 2023 – Sep 2024)$973/month~3.7% COLA increase; first full year post-pandemicFY2025 (Oct 2024 – Sep 2025)$975/monthMinimal ~0.2% increase; OBBB signed into lawFY2026 (Oct 2025 – Sep 2026)$994/month~2% increase; expanded work requirements take effect The end of Emergency Allotments in early 2023 was the biggest disruption in recent memory — some households that had received the maximum saw benefits drop to $23/month. FY2026 numbers are all standard formula, no pandemic additions. Frequently Asked Questions QHow much is SNAP in Vermont in 2026? AThe maximum monthly SNAP benefit in Vermont (VT) for FY2026 is $298 for a single person, $546 for 2 people, $785 for 3 people, $994 for a family of 4, and $1,183 for 5 people. Most households receive less than the maximum based on net income after deductions. QWhen does SNAP deposit to my Vermont EBT card? ABenefits load 1st (all recipients). Check your approval letter or Vermont DCF Benefits for your exact deposit date. QWhat are the income limits for Vermont SNAP in 2026? AVermont uses a gross income limit of 185% FPL — approximately $2,322/month for a single person or $4,810/month for a family of four. Net income (after deductions) must be at or below 100% FPL. QHow do I apply for SNAP in Vermont? AApply online at https://dcf.vermont.gov/esd/3squares, in person at a local Vermont Department for Children and Families (DCF) office, or by calling 1-800-479-6151. Processing takes up to 30 days, or 7 days if you qualify for expedited benefits. QWhat can I buy with my Vermont EBT card? ASNAP covers groceries including produce, meat, dairy, bread, cereals, and packaged foods. You can shop in-store at most major grocery chains and online through Amazon Fresh and Walmart Grocery. SNAP does not cover alcohol, tobacco, hot prepared foods, vitamins, or non-food household items. QWhat do I do if my Vermont SNAP application is denied? ARequest a fair hearing within 90 days of your denial notice. Apply online at https://dcf.vermont.gov/esd/3squares, in person at a local office, or by calling 1-800-479-6151. The agency must explain the specific reason for denial — gather documentation addressing that reason before your hearing. QDid SNAP benefits change in 2026? AYes. The One Big Beautiful Bill (OBBB) expanded work requirements to include adults aged 55–64 and parents of children over 14. It cuts federal SNAP funding by $186 billion over 10 years and shifts some benefit costs to states starting in 2028. QCan I use my Vermont EBT card at Walmart or Amazon? AYes to both. Walmart accepts Vermont EBT in-store and online at walmart.com. Amazon Fresh also accepts SNAP/EBT online — select it as your payment method at checkout. Delivery fees are not covered, only eligible food items. **Categories:** Taxes and Retirement --- ### [Utah SNAP Benefits: 2027 Outlook, Current 2026 Amounts Up to $994/Month](https://savingtoinvest.com/utah-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) **Published:** June 22, 2026 **Author:** Andy **Content:** ### Key Takeaways - FY2026 max SNAP benefit: $298/month for 1 person, $994/month for a family of 4 - Benefits load on your Utah EBT Card 5th, 11th, or 15th - The OBBB expanded work requirements to adults 55–64 and parents of teens — if you were exempt before, check whether you still are - Utah uses the federal 130% FPL income limit — the minimum floor, no expansion - Apply or recertify at myCase Utah Benefits Portal or call 801-526-0950 or 1-866-435-7414 A family of four on SNAP in Utah can get up to $994 a month in fiscal year 2026 — up from $975 last year — deposited onto the Utah EBT Card 5th, 11th, or 15th. The open question now is what USDA sets for FY2027, expected in late summer. But 2026 is a more complicated year than most for SNAP. The One Big Beautiful Bill (OBBB) made some of the biggest cuts to the program in its history — and some Utah residents who qualified last year may not qualify now. Here’s what changed, what you can expect to receive, and what to do if you’re denied. Covered in this Article: [Toggle](#) - [2026 SNAP Benefit Amounts in Utah](#2026_SNAP_Benefit_Amounts_in_Utah) - [When Does SNAP Deposit to Your Utah EBT Card?](#When_Does_SNAP_Deposit_to_Your_Utah_EBT_Card) - [What’s Changed in 2026: OBBB Work Requirements](#Whats_Changed_in_2026_OBBB_Work_Requirements) - [How to Qualify for Utah SNAP in 2026](#How_to_Qualify_for_Utah_SNAP_in_2026) - [How to Apply](#How_to_Apply) - [What to Do If Your Utah SNAP Application Is Denied](#What_to_Do_If_Your_Utah_SNAP_Application_Is_Denied) - [What to Watch: Potential SNAP Changes Ahead](#What_to_Watch_Potential_SNAP_Changes_Ahead) - [Where Can You Use Your Utah EBT Card?](#Where_Can_You_Use_Your_Utah_EBT_Card) - [Other Benefits If You Receive Utah SNAP](#Other_Benefits_If_You_Receive_Utah_SNAP) - [Utah SNAP: How Benefits Have Changed (2023–2026)](#Utah_SNAP_How_Benefits_Have_Changed_2023%E2%80%932026) ## 2026 SNAP Benefit Amounts in Utah Utah uses the standard federal SNAP benefit schedule. Maximum monthly allotments for FY2026 (October 1, 2025 – September 30, 2026): Household SizeMax Monthly BenefitGross Income Limit (130% FPL)Net Income Limit (100% FPL)1 person$298$1,632/mo$1,255/mo2 people$546$2,214/mo$1,703/mo3 people$785$2,798/mo$2,152/mo4 people$994$3,380/mo$2,600/mo5 people$1,183$3,964/mo$3,049/mo6 people$1,421$4,546/mo$3,497/mo7 people$1,571$5,128/mo$3,945/mo8+ people$1,791+—— **Utah (UT) uses the federal 130% FPL income standard** — the minimum floor, no expansion. A family of four must have gross income at or below **$3,380/month** to qualify. This is one of the stricter limits nationally. Most households receive less than the maximum. Your actual benefit depends on net income after deductions (rent, utilities, child care, medical expenses for elderly or disabled members). ### How Much Would a Family of 4 Actually Receive in Utah? Here are two realistic examples to show the range: **Scenario A — Lower-income family** A family of 4 with gross monthly income of **$1,500** (one parent working part-time): - Gross income: $1,500 ✓ (within $3,380/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$300 - Net income: $983 - 30% of net income: $295 - **Monthly SNAP benefit: $994 − $295 = $699** **Scenario B — Working family (moderate income)** A family of 4 with gross monthly income of **$2,000**: - Gross income: $2,000 ✓ (within $3,380/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$400 - Net income: $1,383 - 30% of net income: $415 - **Monthly SNAP benefit: $994 − $415 = $579** The 20% earned income deduction rewards working households. Additional deductions for excess shelter costs, child care, or medical expenses (elderly/disabled) can increase your benefit further. ## When Does SNAP Deposit to Your Utah EBT Card? Utah (UT) uses three issuance groups, with benefits loading on the **5th, 11th, or 15th** of each month. Your specific date is assigned at approval. Your benefit date is on your approval letter or at [myCase Utah Benefits Portal](https://jobs.utah.gov/mycase). TANF cash benefits (if applicable) follow a separate deposit schedule. ## What’s Changed in 2026: OBBB Work Requirements The OBBB made several significant changes that took effect in late 2025 and early 2026: **Expanded work requirements**: Adults aged **55–64** who are able to work are now subject to SNAP work requirements for the first time. Previously the cutoff was 49. Parents whose youngest child is **over 14** are also now subject to work rules. **20 hours per week or 80 hours per month** — that’s the threshold for Able-Bodied Adults Without Dependents (ABAWDs) aged 18–64. Work, job training, or approved volunteer activity all count. Fail to meet the requirement and benefits are limited to **3 months in any 36-month period**. **State cost-sharing starting in 2028**: States will begin paying a share of benefit costs based on their SNAP payment error rate. This is new territory for all state budgets. **$186 billion in total federal SNAP cuts** over the next decade. If you were receiving SNAP in 2024 and haven’t recertified recently, check your current eligibility — the rules have shifted. ## How to Qualify for Utah SNAP in 2026 **Income**: Gross income must be at or below 130% FPL (see table above). Net income (after deductions) must be at or below 100% FPL. **Residency**: Must be a Utah resident. **Citizenship**: U.S. citizens and certain lawfully present immigrants qualify. Undocumented individuals are not eligible for federal SNAP benefits. **Work requirements**: Most able-bodied adults 18–64 must register for work and accept suitable employment. ABAWDs must meet the 80-hour/month work, training, or volunteer threshold. New in 2026: adults 55–64 are now included. ## How to Apply - **Online**: [myCase Utah Benefits Portal](https://jobs.utah.gov/mycase) — fastest option, available 24/7 - **In person**: Any local Utah Department of Workforce Services office - **Phone**: 801-526-0950 or 1-866-435-7414 Utah has up to **30 days** to process your application — or **7 days** if you qualify for expedited SNAP (very low income or resources). Benefits are backdated to your application date. Things can shift quickly. I’ll update this page when anything changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What to Do If Your Utah SNAP Application Is Denied Denials are common and often appealable. The most frequent reasons are income slightly over the stated limit, missing documentation, and work requirement issues — all of which can be addressed. **Step 1**: Read your denial notice carefully. Utah is required to explain the specific reason in writing. **Step 2**: Gather documentation that addresses the reason — recent pay stubs, rent receipts, proof of work activities, or a letter from your employer if hours changed. **Step 3**: Request a fair hearing within **90 days** of your denial. You can request one online at [myCase Utah Benefits Portal](https://jobs.utah.gov/mycase), in person at your local Utah Department of Workforce Services office, or by calling **801-526-0950 or 1-866-435-7414**. **Step 4**: While your appeal is pending, you can continue receiving benefits if you were previously approved — request continued benefits when you file your hearing request. --- ## What to Watch: Potential SNAP Changes Ahead **State cost-sharing (FY2027–2028)**: Starting in FY2027, Utah will begin paying a share of SNAP benefit costs — a first for all states. The percentage depends on Utah’s payment error rate. If cost pressure builds, expect tighter eligibility administration at the state level. **Work requirement enforcement**: Federal guidance on the expanded age 55–64 rules is still evolving. States are implementing these in phases — if you’re in the newly covered age range, check with your caseworker. **FY2027 COLA adjustment**: Benefits update October 1. I’ll post FY2027 amounts here when USDA releases them (typically late summer 2026). Things can shift quickly — [Subscribe or follow us ↗](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates. --- ## Where Can You Use Your Utah EBT Card? **In stores**: Any USDA-authorized retailer — including Walmart, Smith’s (Kroger), Harmons, WinCo Foods, Macey’s, ALDI, and most independent grocery stores. Look for the EBT/SNAP sign at checkout. **Online**: Utah SNAP recipients can shop online through **Amazon Fresh** and **Walmart Grocery** — select SNAP/EBT as your payment method at checkout. Delivery fees are not covered by SNAP (only the groceries themselves). **Farmers markets**: Many Utah farmers markets accept EBT. Some participate in the Double Up Food Bucks program, which matches SNAP dollars on locally-grown produce. **What SNAP does NOT cover**: Alcohol, tobacco, vitamins/supplements, hot prepared foods, fast food, pet food, household supplies, or hygiene products. ## Other Benefits If You Receive Utah SNAP SNAP often unlocks access to other programs: - **Medicaid / CHIP**: Receiving SNAP can streamline Medicaid enrollment for adults and children. Apply through [myCase Utah Benefits Portal](https://jobs.utah.gov/mycase). - **LIHEAP**: Low Income Home Energy Assistance helps with utility bills. Contact your local community action agency or call 2-1-1. - **WIC**: Nutrition support for pregnant women, new mothers, and children under 5. Separate application through your state health department. - **Summer EBT (SUN Bucks)**: Extra food benefits for school-age children during summer months. Check with your state for 2026 enrollment. - **Free/reduced school meals**: SNAP households automatically qualify. Register through your child’s school district. For a full overview of federal SNAP amounts and recent cuts, see the [2026 SNAP benefits guide](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). See also: [Utah unemployment benefit amounts and eligibility rules](https://savingtoinvest.com/utah-unemployment-benefits/). --- ## Utah SNAP: How Benefits Have Changed (2023–2026) PeriodMax Benefit (Family of 4)Key DevelopmentFY2023 (Oct 2022 – Sep 2023)$939/monthPandemic Emergency Allotments ended — biggest single drop since the pandemicFY2024 (Oct 2023 – Sep 2024)$973/month~3.7% COLA increase; first full year post-pandemicFY2025 (Oct 2024 – Sep 2025)$975/monthMinimal ~0.2% increase; OBBB signed into lawFY2026 (Oct 2025 – Sep 2026)$994/month~2% increase; expanded work requirements take effect The end of Emergency Allotments in early 2023 was the biggest disruption in recent memory — some households that had received the maximum saw benefits drop to $23/month. FY2026 numbers are all standard formula, no pandemic additions. Frequently Asked Questions QHow much is SNAP in Utah in 2026? AThe maximum monthly SNAP benefit in Utah (UT) for FY2026 is $298 for a single person, $546 for 2 people, $785 for 3 people, $994 for a family of 4, and $1,183 for 5 people. Most households receive less than the maximum based on net income after deductions. QWhen does SNAP deposit to my Utah EBT card? ABenefits load 5th, 11th, or 15th. Check your approval letter or myCase Utah Benefits Portal for your exact deposit date. QWhat are the income limits for Utah SNAP in 2026? AUtah uses a gross income limit of 130% FPL — approximately $1,632/month for a single person or $3,380/month for a family of four. Net income (after deductions) must be at or below 100% FPL. QHow do I apply for SNAP in Utah? AApply online at https://jobs.utah.gov/mycase, in person at a local Utah Department of Workforce Services (DWS) office, or by calling 801-526-0950 or 1-866-435-7414. Processing takes up to 30 days, or 7 days if you qualify for expedited benefits. QWhat can I buy with my Utah EBT card? ASNAP covers groceries including produce, meat, dairy, bread, cereals, and packaged foods. You can shop in-store at most major grocery chains and online through Amazon Fresh and Walmart Grocery. SNAP does not cover alcohol, tobacco, hot prepared foods, vitamins, or non-food household items. QWhat do I do if my Utah SNAP application is denied? ARequest a fair hearing within 90 days of your denial notice. Apply online at https://jobs.utah.gov/mycase, in person at a local office, or by calling 801-526-0950 or 1-866-435-7414. The agency must explain the specific reason for denial — gather documentation addressing that reason before your hearing. QDid SNAP benefits change in 2026? AYes. The One Big Beautiful Bill (OBBB) expanded work requirements to include adults aged 55–64 and parents of children over 14. It cuts federal SNAP funding by $186 billion over 10 years and shifts some benefit costs to states starting in 2028. QCan I use my Utah EBT card at Walmart or Amazon? AYes to both. Walmart accepts Utah EBT in-store and online at walmart.com. Amazon Fresh also accepts SNAP/EBT online — select it as your payment method at checkout. Delivery fees are not covered, only eligible food items. **Categories:** Taxes and Retirement --- ### [Texas SNAP Benefits: 2027 Outlook, Current 2026 Amounts Up to $994/Month](https://savingtoinvest.com/texas-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) **Published:** June 22, 2026 **Author:** Andy **Content:** ### Key Takeaways - FY2026 max SNAP benefit: $298/month for 1 person, $994/month for a family of 4 - Benefits load on your Lone Star Card (EBT) 1st–28th - The OBBB expanded work requirements to adults 55–64 and parents of teens — if you were exempt before, check whether you still are - Texas uses BBCE at 165% FPL — more households qualify than in standard states - Apply or recertify at YourTexasBenefits.com or call 2-1-1 or 1-877-541-7905 Texas’s SNAP benefits load onto your Lone Star Card (EBT) 1st–28th. The maximum for a family of four is $994 a month in fiscal year 2026, up from $975 last year. The open question now is what USDA sets for FY2027, expected in late summer. But 2026 is a more complicated year than most for SNAP. The One Big Beautiful Bill (OBBB) made some of the biggest cuts to the program in its history — and some Texas residents who qualified last year may not qualify now. Here’s what changed, what you can expect to receive, and what to do if you’re denied. Covered in this Article: [Toggle](#) - [2026 SNAP Benefit Amounts in Texas](#2026_SNAP_Benefit_Amounts_in_Texas) - [When Does SNAP Deposit to Your Texas EBT Card?](#When_Does_SNAP_Deposit_to_Your_Texas_EBT_Card) - [What’s Changed in 2026: OBBB Work Requirements](#Whats_Changed_in_2026_OBBB_Work_Requirements) - [How to Qualify for Texas SNAP in 2026](#How_to_Qualify_for_Texas_SNAP_in_2026) - [How to Apply](#How_to_Apply) - [What to Do If Your Texas SNAP Application Is Denied](#What_to_Do_If_Your_Texas_SNAP_Application_Is_Denied) - [What to Watch: Potential SNAP Changes Ahead](#What_to_Watch_Potential_SNAP_Changes_Ahead) - [Where Can You Use Your Texas EBT Card?](#Where_Can_You_Use_Your_Texas_EBT_Card) - [Other Benefits If You Receive Texas SNAP](#Other_Benefits_If_You_Receive_Texas_SNAP) - [Texas SNAP: How Benefits Have Changed (2023–2026)](#Texas_SNAP_How_Benefits_Have_Changed_2023%E2%80%932026) ## 2026 SNAP Benefit Amounts in Texas Texas uses the standard federal SNAP benefit schedule. Maximum monthly allotments for FY2026 (October 1, 2025 – September 30, 2026): Household SizeMax Monthly BenefitGross Income Limit (165% FPL)Net Income Limit (100% FPL)1 person$298$2,071/mo$1,255/mo2 people$546$2,810/mo$1,703/mo3 people$785$3,551/mo$2,152/mo4 people$994$4,290/mo$2,600/mo5 people$1,183$5,031/mo$3,049/mo6 people$1,421$5,770/mo$3,497/mo7 people$1,571$6,509/mo$3,945/mo8+ people$1,791+—— **Texas (TX) uses BBCE at 165% FPL**, moderately above the federal 130% floor. A family of four can qualify with gross income up to **$4,290/month** — compared to only $3,380/month in states without BBCE. Most households receive less than the maximum. Your actual benefit depends on net income after deductions (rent, utilities, child care, medical expenses for elderly or disabled members). ### How Much Would a Family of 4 Actually Receive in Texas? Here are two realistic examples to show the range: **Scenario A — Lower-income family** A family of 4 with gross monthly income of **$1,500** (one parent working part-time): - Gross income: $1,500 ✓ (within $4,290/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$300 - Net income: $983 - 30% of net income: $295 - **Monthly SNAP benefit: $994 − $295 = $699** **Scenario B — Working family (moderate income)** A family of 4 with gross monthly income of **$2,500**: - Gross income: $2,500 ✓ (within $4,290/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$500 - Net income: $1,783 - 30% of net income: $535 - **Monthly SNAP benefit: $994 − $535 = $459** The 20% earned income deduction rewards working households. Additional deductions for excess shelter costs, child care, or medical expenses (elderly/disabled) can increase your benefit further. ## When Does SNAP Deposit to Your Texas EBT Card? Texas (TX) distributes SNAP benefits based on the **last digit of your case number**. Benefits load between the 1st–28th each month: Case # Last DigitDeposit Date11st24th37th410th513th616th719th822nd925th028th Your case number is on your approval letter or available through [YourTexasBenefits.com](https://yourtexasbenefits.com). Call **2-1-1 or 1-877-541-7905** if you’re unsure of your deposit date — it stays the same each month once you’re approved. TANF cash benefits (if applicable) follow a separate deposit schedule. ## What’s Changed in 2026: OBBB Work Requirements The OBBB made several significant changes that took effect in late 2025 and early 2026: **Expanded work requirements**: Adults aged **55–64** who are able to work are now subject to SNAP work requirements for the first time. Previously the cutoff was 49. Parents whose youngest child is **over 14** are also now subject to work rules. **20 hours per week or 80 hours per month** — that’s the threshold for Able-Bodied Adults Without Dependents (ABAWDs) aged 18–64. Work, job training, or approved volunteer activity all count. Fail to meet the requirement and benefits are limited to **3 months in any 36-month period**. **State cost-sharing starting in 2028**: States will begin paying a share of benefit costs based on their SNAP payment error rate. This is new territory for all state budgets. **$186 billion in total federal SNAP cuts** over the next decade. If you were receiving SNAP in 2024 and haven’t recertified recently, check your current eligibility — the rules have shifted. ## How to Qualify for Texas SNAP in 2026 **Income**: Gross income must be at or below 165% FPL (see table above). Net income (after deductions) must be at or below 100% FPL. **Residency**: Must be a Texas resident. **Citizenship**: U.S. citizens and certain lawfully present immigrants qualify. Undocumented individuals are not eligible for federal SNAP benefits. **Work requirements**: Most able-bodied adults 18–64 must register for work and accept suitable employment. ABAWDs must meet the 80-hour/month work, training, or volunteer threshold. New in 2026: adults 55–64 are now included. ## How to Apply - **Online**: [YourTexasBenefits.com](https://yourtexasbenefits.com) — fastest option, available 24/7 - **In person**: Any local Texas Health and Human Services office - **Phone**: 2-1-1 or 1-877-541-7905 Texas has up to **30 days** to process your application — or **7 days** if you qualify for expedited SNAP (very low income or resources). Benefits are backdated to your application date. Things can shift quickly. I’ll update this page when anything changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What to Do If Your Texas SNAP Application Is Denied Denials are common and often appealable. The most frequent reasons are income slightly over the stated limit, missing documentation, and work requirement issues — all of which can be addressed. **Step 1**: Read your denial notice carefully. Texas is required to explain the specific reason in writing. **Step 2**: Gather documentation that addresses the reason — recent pay stubs, rent receipts, proof of work activities, or a letter from your employer if hours changed. **Step 3**: Request a fair hearing within **90 days** of your denial. You can request one online at [YourTexasBenefits.com](https://yourtexasbenefits.com), in person at your local Texas Health and Human Services office, or by calling **2-1-1 or 1-877-541-7905**. **Step 4**: While your appeal is pending, you can continue receiving benefits if you were previously approved — request continued benefits when you file your hearing request. --- ## What to Watch: Potential SNAP Changes Ahead **State cost-sharing (FY2027–2028)**: Starting in FY2027, Texas will begin paying a share of SNAP benefit costs — a first for all states. The percentage depends on Texas’s payment error rate. If cost pressure builds, expect tighter eligibility administration at the state level. **Work requirement enforcement**: Federal guidance on the expanded age 55–64 rules is still evolving. States are implementing these in phases — if you’re in the newly covered age range, check with your caseworker. **FY2027 COLA adjustment**: Benefits update October 1. I’ll post FY2027 amounts here when USDA releases them (typically late summer 2026). Things can shift quickly — [Subscribe or follow us ↗](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates. --- ## Where Can You Use Your Texas EBT Card? **In stores**: Any USDA-authorized retailer — including Walmart, H-E-B, Kroger, Randalls, Food Town, ALDI, Fiesta Mart, and most independent grocery stores. Look for the EBT/SNAP sign at checkout. **Online**: Texas SNAP recipients can shop online through **Amazon Fresh** and **Walmart Grocery** — select SNAP/EBT as your payment method at checkout. Delivery fees are not covered by SNAP (only the groceries themselves). **Farmers markets**: Many Texas farmers markets accept EBT. Some participate in the Double Up Food Bucks program, which matches SNAP dollars on locally-grown produce. **What SNAP does NOT cover**: Alcohol, tobacco, vitamins/supplements, hot prepared foods, fast food, pet food, household supplies, or hygiene products. Texas’s EBT card is called the **Lone Star Card**. It works at any USDA-authorized retailer across the state. ## Other Benefits If You Receive Texas SNAP SNAP often unlocks access to other programs: - **Medicaid / CHIP**: Receiving SNAP can streamline Medicaid enrollment for adults and children. Apply through [YourTexasBenefits.com](https://yourtexasbenefits.com). - **LIHEAP**: Low Income Home Energy Assistance helps with utility bills. Contact your local community action agency or call 2-1-1. - **WIC**: Nutrition support for pregnant women, new mothers, and children under 5. Separate application through your state health department. - **Summer EBT (SUN Bucks)**: Extra food benefits for school-age children during summer months. Check with your state for 2026 enrollment. - **Free/reduced school meals**: SNAP households automatically qualify. Register through your child’s school district. For a full overview of federal SNAP amounts and recent cuts, see the [2026 SNAP benefits guide](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). See also: [Texas unemployment benefit amounts and eligibility rules](https://savingtoinvest.com/texas-unemployment-insurance-compensation-uic-and-enhanced-coronavirus-benefits/). --- ## Texas SNAP: How Benefits Have Changed (2023–2026) PeriodMax Benefit (Family of 4)Key DevelopmentFY2023 (Oct 2022 – Sep 2023)$939/monthPandemic Emergency Allotments ended — biggest single drop since the pandemicFY2024 (Oct 2023 – Sep 2024)$973/month~3.7% COLA increase; first full year post-pandemicFY2025 (Oct 2024 – Sep 2025)$975/monthMinimal ~0.2% increase; OBBB signed into lawFY2026 (Oct 2025 – Sep 2026)$994/month~2% increase; expanded work requirements take effect The end of Emergency Allotments in early 2023 was the biggest disruption in recent memory — some households that had received the maximum saw benefits drop to $23/month. FY2026 numbers are all standard formula, no pandemic additions. Frequently Asked Questions QHow much is SNAP in Texas in 2026? AThe maximum monthly SNAP benefit in Texas (TX) for FY2026 is $298 for a single person, $546 for 2 people, $785 for 3 people, $994 for a family of 4, and $1,183 for 5 people. Most households receive less than the maximum based on net income after deductions. QWhen does SNAP deposit to my Texas EBT card? ABenefits load 1st–28th. Check your approval letter or YourTexasBenefits.com for your exact deposit date. QWhat are the income limits for Texas SNAP in 2026? ATexas uses a gross income limit of 165% FPL — approximately $2,071/month for a single person or $4,290/month for a family of four. Net income (after deductions) must be at or below 100% FPL. QHow do I apply for SNAP in Texas? AApply online at https://yourtexasbenefits.com, in person at a local Texas Health and Human Services (HHS) office, or by calling 2-1-1 or 1-877-541-7905. Processing takes up to 30 days, or 7 days if you qualify for expedited benefits. QWhat can I buy with my Texas EBT card? ASNAP covers groceries including produce, meat, dairy, bread, cereals, and packaged foods. You can shop in-store at most major grocery chains and online through Amazon Fresh and Walmart Grocery. SNAP does not cover alcohol, tobacco, hot prepared foods, vitamins, or non-food household items. QWhat do I do if my Texas SNAP application is denied? ARequest a fair hearing within 90 days of your denial notice. Apply online at https://yourtexasbenefits.com, in person at a local office, or by calling 2-1-1 or 1-877-541-7905. The agency must explain the specific reason for denial — gather documentation addressing that reason before your hearing. QDid SNAP benefits change in 2026? AYes. The One Big Beautiful Bill (OBBB) expanded work requirements to include adults aged 55–64 and parents of children over 14. It cuts federal SNAP funding by $186 billion over 10 years and shifts some benefit costs to states starting in 2028. QCan I use my Texas EBT card at Walmart or Amazon? AYes to both. Walmart accepts Texas EBT in-store and online at walmart.com. Amazon Fresh also accepts SNAP/EBT online — select it as your payment method at checkout. Delivery fees are not covered, only eligible food items. **Categories:** Taxes and Retirement --- ### [Tennessee SNAP Benefits: 2027 Outlook, Current 2026 Amounts Up to $994/Month](https://savingtoinvest.com/tennessee-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) **Published:** June 22, 2026 **Author:** Andy **Content:** ### Key Takeaways - FY2026 max SNAP benefit: $298/month for 1 person, $994/month for a family of 4 - Benefits load on your Tennessee EBT Card 1st–20th - The OBBB expanded work requirements to adults 55–64 and parents of teens — if you were exempt before, check whether you still are - Tennessee uses the federal 130% FPL income limit — the minimum floor, no expansion - Apply or recertify at Tennessee DHS Benefits or call 1-866-311-4287 Tennessee DHS Benefits handles SNAP applications and recertifications in Tennessee, with benefits loading onto the Tennessee EBT Card 1st–20th. Fiscal year 2026’s maximum for a family of four is $994 a month, up $19 from last year’s $975. The open question now is what USDA sets for FY2027, expected in late summer. But 2026 is a more complicated year than most for SNAP. The One Big Beautiful Bill (OBBB) made some of the biggest cuts to the program in its history — and some Tennessee residents who qualified last year may not qualify now. Here’s what changed, what you can expect to receive, and what to do if you’re denied. Covered in this Article: [Toggle](#) - [2026 SNAP Benefit Amounts in Tennessee](#2026_SNAP_Benefit_Amounts_in_Tennessee) - [When Does SNAP Deposit to Your Tennessee EBT Card?](#When_Does_SNAP_Deposit_to_Your_Tennessee_EBT_Card) - [What’s Changed in 2026: OBBB Work Requirements](#Whats_Changed_in_2026_OBBB_Work_Requirements) - [How to Qualify for Tennessee SNAP in 2026](#How_to_Qualify_for_Tennessee_SNAP_in_2026) - [How to Apply](#How_to_Apply) - [What to Do If Your Tennessee SNAP Application Is Denied](#What_to_Do_If_Your_Tennessee_SNAP_Application_Is_Denied) - [What to Watch: Potential SNAP Changes Ahead](#What_to_Watch_Potential_SNAP_Changes_Ahead) - [Where Can You Use Your Tennessee EBT Card?](#Where_Can_You_Use_Your_Tennessee_EBT_Card) - [Other Benefits If You Receive Tennessee SNAP](#Other_Benefits_If_You_Receive_Tennessee_SNAP) - [Tennessee SNAP: How Benefits Have Changed (2023–2026)](#Tennessee_SNAP_How_Benefits_Have_Changed_2023%E2%80%932026) ## 2026 SNAP Benefit Amounts in Tennessee Tennessee uses the standard federal SNAP benefit schedule. Maximum monthly allotments for FY2026 (October 1, 2025 – September 30, 2026): Household SizeMax Monthly BenefitGross Income Limit (130% FPL)Net Income Limit (100% FPL)1 person$298$1,632/mo$1,255/mo2 people$546$2,214/mo$1,703/mo3 people$785$2,798/mo$2,152/mo4 people$994$3,380/mo$2,600/mo5 people$1,183$3,964/mo$3,049/mo6 people$1,421$4,546/mo$3,497/mo7 people$1,571$5,128/mo$3,945/mo8+ people$1,791+—— **Tennessee (TN) uses the federal 130% FPL income standard** — the minimum floor, no expansion. A family of four must have gross income at or below **$3,380/month** to qualify. This is one of the stricter limits nationally. Most households receive less than the maximum. Your actual benefit depends on net income after deductions (rent, utilities, child care, medical expenses for elderly or disabled members). ### How Much Would a Family of 4 Actually Receive in Tennessee? Here are two realistic examples to show the range: **Scenario A — Lower-income family** A family of 4 with gross monthly income of **$1,500** (one parent working part-time): - Gross income: $1,500 ✓ (within $3,380/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$300 - Net income: $983 - 30% of net income: $295 - **Monthly SNAP benefit: $994 − $295 = $699** **Scenario B — Working family (moderate income)** A family of 4 with gross monthly income of **$2,000**: - Gross income: $2,000 ✓ (within $3,380/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$400 - Net income: $1,383 - 30% of net income: $415 - **Monthly SNAP benefit: $994 − $415 = $579** The 20% earned income deduction rewards working households. Additional deductions for excess shelter costs, child care, or medical expenses (elderly/disabled) can increase your benefit further. ## When Does SNAP Deposit to Your Tennessee EBT Card? Tennessee (TN) distributes SNAP benefits based on the **last digit of your SSN**. Benefits load between the 1st–20th each month: SSN Last DigitDeposit Date11st23rd35th47th59th612th714th816th918th020th Your case number is on your approval letter or available through [Tennessee DHS Benefits](https://www.tn.gov/humanservices/snap). Call **1-866-311-4287** if you’re unsure of your deposit date — it stays the same each month once you’re approved. TANF cash benefits (if applicable) follow a separate deposit schedule. ## What’s Changed in 2026: OBBB Work Requirements The OBBB made several significant changes that took effect in late 2025 and early 2026: **Expanded work requirements**: Adults aged **55–64** who are able to work are now subject to SNAP work requirements for the first time. Previously the cutoff was 49. Parents whose youngest child is **over 14** are also now subject to work rules. **20 hours per week or 80 hours per month** — that’s the threshold for Able-Bodied Adults Without Dependents (ABAWDs) aged 18–64. Work, job training, or approved volunteer activity all count. Fail to meet the requirement and benefits are limited to **3 months in any 36-month period**. **State cost-sharing starting in 2028**: States will begin paying a share of benefit costs based on their SNAP payment error rate. This is new territory for all state budgets. **$186 billion in total federal SNAP cuts** over the next decade. If you were receiving SNAP in 2024 and haven’t recertified recently, check your current eligibility — the rules have shifted. ## How to Qualify for Tennessee SNAP in 2026 **Income**: Gross income must be at or below 130% FPL (see table above). Net income (after deductions) must be at or below 100% FPL. **Residency**: Must be a Tennessee resident. **Citizenship**: U.S. citizens and certain lawfully present immigrants qualify. Undocumented individuals are not eligible for federal SNAP benefits. **Work requirements**: Most able-bodied adults 18–64 must register for work and accept suitable employment. ABAWDs must meet the 80-hour/month work, training, or volunteer threshold. New in 2026: adults 55–64 are now included. ## How to Apply - **Online**: [Tennessee DHS Benefits](https://www.tn.gov/humanservices/snap) — fastest option, available 24/7 - **In person**: Any local Tennessee Department of Human Services office - **Phone**: 1-866-311-4287 Tennessee has up to **30 days** to process your application — or **7 days** if you qualify for expedited SNAP (very low income or resources). Benefits are backdated to your application date. Things can shift quickly. I’ll update this page when anything changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What to Do If Your Tennessee SNAP Application Is Denied Denials are common and often appealable. The most frequent reasons are income slightly over the stated limit, missing documentation, and work requirement issues — all of which can be addressed. **Step 1**: Read your denial notice carefully. Tennessee is required to explain the specific reason in writing. **Step 2**: Gather documentation that addresses the reason — recent pay stubs, rent receipts, proof of work activities, or a letter from your employer if hours changed. **Step 3**: Request a fair hearing within **90 days** of your denial. You can request one online at [Tennessee DHS Benefits](https://www.tn.gov/humanservices/snap), in person at your local Tennessee Department of Human Services office, or by calling **1-866-311-4287**. **Step 4**: While your appeal is pending, you can continue receiving benefits if you were previously approved — request continued benefits when you file your hearing request. --- ## What to Watch: Potential SNAP Changes Ahead **State cost-sharing (FY2027–2028)**: Starting in FY2027, Tennessee will begin paying a share of SNAP benefit costs — a first for all states. The percentage depends on Tennessee’s payment error rate. If cost pressure builds, expect tighter eligibility administration at the state level. **Work requirement enforcement**: Federal guidance on the expanded age 55–64 rules is still evolving. States are implementing these in phases — if you’re in the newly covered age range, check with your caseworker. **FY2027 COLA adjustment**: Benefits update October 1. I’ll post FY2027 amounts here when USDA releases them (typically late summer 2026). Things can shift quickly — [Subscribe or follow us ↗](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates. --- ## Where Can You Use Your Tennessee EBT Card? **In stores**: Any USDA-authorized retailer — including Walmart, Kroger, Publix, Food City, ALDI, Save-A-Lot, and most independent grocery stores. Look for the EBT/SNAP sign at checkout. **Online**: Tennessee SNAP recipients can shop online through **Amazon Fresh** and **Walmart Grocery** — select SNAP/EBT as your payment method at checkout. Delivery fees are not covered by SNAP (only the groceries themselves). **Farmers markets**: Many Tennessee farmers markets accept EBT. Some participate in the Double Up Food Bucks program, which matches SNAP dollars on locally-grown produce. **What SNAP does NOT cover**: Alcohol, tobacco, vitamins/supplements, hot prepared foods, fast food, pet food, household supplies, or hygiene products. ## Other Benefits If You Receive Tennessee SNAP SNAP often unlocks access to other programs: - **Medicaid / CHIP**: Receiving SNAP can streamline Medicaid enrollment for adults and children. Apply through [Tennessee DHS Benefits](https://www.tn.gov/humanservices/snap). - **LIHEAP**: Low Income Home Energy Assistance helps with utility bills. Contact your local community action agency or call 2-1-1. - **WIC**: Nutrition support for pregnant women, new mothers, and children under 5. Separate application through your state health department. - **Summer EBT (SUN Bucks)**: Extra food benefits for school-age children during summer months. Check with your state for 2026 enrollment. - **Free/reduced school meals**: SNAP households automatically qualify. Register through your child’s school district. For a full overview of federal SNAP amounts and recent cuts, see the [2026 SNAP benefits guide](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). See also: [Tennessee unemployment benefit amounts and eligibility rules](https://savingtoinvest.com/tennessee-tn-enhanced-unemployment-benefit-programs-fpuc-peuc-and-pua-2021-extension-delays-news-and-updates/). --- ## Tennessee SNAP: How Benefits Have Changed (2023–2026) PeriodMax Benefit (Family of 4)Key DevelopmentFY2023 (Oct 2022 – Sep 2023)$939/monthPandemic Emergency Allotments ended — biggest single drop since the pandemicFY2024 (Oct 2023 – Sep 2024)$973/month~3.7% COLA increase; first full year post-pandemicFY2025 (Oct 2024 – Sep 2025)$975/monthMinimal ~0.2% increase; OBBB signed into lawFY2026 (Oct 2025 – Sep 2026)$994/month~2% increase; expanded work requirements take effect The end of Emergency Allotments in early 2023 was the biggest disruption in recent memory — some households that had received the maximum saw benefits drop to $23/month. FY2026 numbers are all standard formula, no pandemic additions. Frequently Asked Questions QHow much is SNAP in Tennessee in 2026? AThe maximum monthly SNAP benefit in Tennessee (TN) for FY2026 is $298 for a single person, $546 for 2 people, $785 for 3 people, $994 for a family of 4, and $1,183 for 5 people. Most households receive less than the maximum based on net income after deductions. QWhen does SNAP deposit to my Tennessee EBT card? ABenefits load 1st–20th. Check your approval letter or Tennessee DHS Benefits for your exact deposit date. QWhat are the income limits for Tennessee SNAP in 2026? ATennessee uses a gross income limit of 130% FPL — approximately $1,632/month for a single person or $3,380/month for a family of four. Net income (after deductions) must be at or below 100% FPL. QHow do I apply for SNAP in Tennessee? AApply online at https://www.tn.gov/humanservices/snap, in person at a local Tennessee Department of Human Services (DHS) office, or by calling 1-866-311-4287. Processing takes up to 30 days, or 7 days if you qualify for expedited benefits. QWhat can I buy with my Tennessee EBT card? ASNAP covers groceries including produce, meat, dairy, bread, cereals, and packaged foods. You can shop in-store at most major grocery chains and online through Amazon Fresh and Walmart Grocery. SNAP does not cover alcohol, tobacco, hot prepared foods, vitamins, or non-food household items. QWhat do I do if my Tennessee SNAP application is denied? ARequest a fair hearing within 90 days of your denial notice. Apply online at https://www.tn.gov/humanservices/snap, in person at a local office, or by calling 1-866-311-4287. The agency must explain the specific reason for denial — gather documentation addressing that reason before your hearing. QDid SNAP benefits change in 2026? AYes. The One Big Beautiful Bill (OBBB) expanded work requirements to include adults aged 55–64 and parents of children over 14. It cuts federal SNAP funding by $186 billion over 10 years and shifts some benefit costs to states starting in 2028. QCan I use my Tennessee EBT card at Walmart or Amazon? AYes to both. Walmart accepts Tennessee EBT in-store and online at walmart.com. Amazon Fresh also accepts SNAP/EBT online — select it as your payment method at checkout. Delivery fees are not covered, only eligible food items. **Categories:** Taxes and Retirement --- ### [South Dakota SNAP Benefits: 2027 Outlook, Current 2026 Amounts Up to $994/Month](https://savingtoinvest.com/south-dakota-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) **Published:** June 22, 2026 **Author:** Andy **Content:** ### Key Takeaways - FY2026 max SNAP benefit: $298/month for 1 person, $994/month for a family of 4 - Benefits load on your South Dakota EBT Card 10th (all recipients) - The OBBB expanded work requirements to adults 55–64 and parents of teens — if you were exempt before, check whether you still are - South Dakota uses the federal 130% FPL income limit — the minimum floor, no expansion - Apply or recertify at South Dakota DSS Benefits or call 605-773-3165 or 2-1-1 South Dakota benefits go out on the South Dakota EBT Card 10th (all recipients), and South Dakota sticks to the federal SNAP income floor of 130% of the poverty line rather than expanding eligibility. The max for a family of four in fiscal year 2026 is $994 a month, up from $975 last year. The open question now is what USDA sets for FY2027, expected in late summer. But 2026 is a more complicated year than most for SNAP. The One Big Beautiful Bill (OBBB) made some of the biggest cuts to the program in its history — and some South Dakota residents who qualified last year may not qualify now. Here’s what changed, what you can expect to receive, and what to do if you’re denied. Covered in this Article: [Toggle](#) - [2026 SNAP Benefit Amounts in South Dakota](#2026_SNAP_Benefit_Amounts_in_South_Dakota) - [When Does SNAP Deposit to Your South Dakota EBT Card?](#When_Does_SNAP_Deposit_to_Your_South_Dakota_EBT_Card) - [What’s Changed in 2026: OBBB Work Requirements](#Whats_Changed_in_2026_OBBB_Work_Requirements) - [How to Qualify for South Dakota SNAP in 2026](#How_to_Qualify_for_South_Dakota_SNAP_in_2026) - [How to Apply](#How_to_Apply) - [What to Do If Your South Dakota SNAP Application Is Denied](#What_to_Do_If_Your_South_Dakota_SNAP_Application_Is_Denied) - [What to Watch: Potential SNAP Changes Ahead](#What_to_Watch_Potential_SNAP_Changes_Ahead) - [Where Can You Use Your South Dakota EBT Card?](#Where_Can_You_Use_Your_South_Dakota_EBT_Card) - [Other Benefits If You Receive South Dakota SNAP](#Other_Benefits_If_You_Receive_South_Dakota_SNAP) - [South Dakota SNAP: How Benefits Have Changed (2023–2026)](#South_Dakota_SNAP_How_Benefits_Have_Changed_2023%E2%80%932026) ## 2026 SNAP Benefit Amounts in South Dakota South Dakota uses the standard federal SNAP benefit schedule. Maximum monthly allotments for FY2026 (October 1, 2025 – September 30, 2026): Household SizeMax Monthly BenefitGross Income Limit (130% FPL)Net Income Limit (100% FPL)1 person$298$1,632/mo$1,255/mo2 people$546$2,214/mo$1,703/mo3 people$785$2,798/mo$2,152/mo4 people$994$3,380/mo$2,600/mo5 people$1,183$3,964/mo$3,049/mo6 people$1,421$4,546/mo$3,497/mo7 people$1,571$5,128/mo$3,945/mo8+ people$1,791+—— **South Dakota (SD) uses the federal 130% FPL income standard** — the minimum floor, no expansion. A family of four must have gross income at or below **$3,380/month** to qualify. This is one of the stricter limits nationally. Most households receive less than the maximum. Your actual benefit depends on net income after deductions (rent, utilities, child care, medical expenses for elderly or disabled members). ### How Much Would a Family of 4 Actually Receive in South Dakota? Here are two realistic examples to show the range: **Scenario A — Lower-income family** A family of 4 with gross monthly income of **$1,500** (one parent working part-time): - Gross income: $1,500 ✓ (within $3,380/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$300 - Net income: $983 - 30% of net income: $295 - **Monthly SNAP benefit: $994 − $295 = $699** **Scenario B — Working family (moderate income)** A family of 4 with gross monthly income of **$2,000**: - Gross income: $2,000 ✓ (within $3,380/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$400 - Net income: $1,383 - 30% of net income: $415 - **Monthly SNAP benefit: $994 − $415 = $579** The 20% earned income deduction rewards working households. Additional deductions for excess shelter costs, child care, or medical expenses (elderly/disabled) can increase your benefit further. ## When Does SNAP Deposit to Your South Dakota EBT Card? South Dakota (SD) distributes SNAP benefits on a **fixed date** — benefits load on the **10th (all recipients)** for all recipients. Your benefit date is on your approval letter or at [South Dakota DSS Benefits](https://dss.sd.gov/foodassistance). TANF cash benefits (if applicable) follow a separate deposit schedule. ## What’s Changed in 2026: OBBB Work Requirements The OBBB made several significant changes that took effect in late 2025 and early 2026: **Expanded work requirements**: Adults aged **55–64** who are able to work are now subject to SNAP work requirements for the first time. Previously the cutoff was 49. Parents whose youngest child is **over 14** are also now subject to work rules. **20 hours per week or 80 hours per month** — that’s the threshold for Able-Bodied Adults Without Dependents (ABAWDs) aged 18–64. Work, job training, or approved volunteer activity all count. Fail to meet the requirement and benefits are limited to **3 months in any 36-month period**. **State cost-sharing starting in 2028**: States will begin paying a share of benefit costs based on their SNAP payment error rate. This is new territory for all state budgets. **$186 billion in total federal SNAP cuts** over the next decade. If you were receiving SNAP in 2024 and haven’t recertified recently, check your current eligibility — the rules have shifted. ## How to Qualify for South Dakota SNAP in 2026 **Income**: Gross income must be at or below 130% FPL (see table above). Net income (after deductions) must be at or below 100% FPL. **Residency**: Must be a South Dakota resident. **Citizenship**: U.S. citizens and certain lawfully present immigrants qualify. Undocumented individuals are not eligible for federal SNAP benefits. **Work requirements**: Most able-bodied adults 18–64 must register for work and accept suitable employment. ABAWDs must meet the 80-hour/month work, training, or volunteer threshold. New in 2026: adults 55–64 are now included. ## How to Apply - **Online**: [South Dakota DSS Benefits](https://dss.sd.gov/foodassistance) — fastest option, available 24/7 - **In person**: Any local South Dakota Department of Social Services office - **Phone**: 605-773-3165 or 2-1-1 South Dakota has up to **30 days** to process your application — or **7 days** if you qualify for expedited SNAP (very low income or resources). Benefits are backdated to your application date. Things can shift quickly. I’ll update this page when anything changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What to Do If Your South Dakota SNAP Application Is Denied Denials are common and often appealable. The most frequent reasons are income slightly over the stated limit, missing documentation, and work requirement issues — all of which can be addressed. **Step 1**: Read your denial notice carefully. South Dakota is required to explain the specific reason in writing. **Step 2**: Gather documentation that addresses the reason — recent pay stubs, rent receipts, proof of work activities, or a letter from your employer if hours changed. **Step 3**: Request a fair hearing within **90 days** of your denial. You can request one online at [South Dakota DSS Benefits](https://dss.sd.gov/foodassistance), in person at your local South Dakota Department of Social Services office, or by calling **605-773-3165 or 2-1-1**. **Step 4**: While your appeal is pending, you can continue receiving benefits if you were previously approved — request continued benefits when you file your hearing request. --- ## What to Watch: Potential SNAP Changes Ahead **State cost-sharing (FY2027–2028)**: Starting in FY2027, South Dakota will begin paying a share of SNAP benefit costs — a first for all states. The percentage depends on South Dakota’s payment error rate. If cost pressure builds, expect tighter eligibility administration at the state level. **Work requirement enforcement**: Federal guidance on the expanded age 55–64 rules is still evolving. States are implementing these in phases — if you’re in the newly covered age range, check with your caseworker. **FY2027 COLA adjustment**: Benefits update October 1. I’ll post FY2027 amounts here when USDA releases them (typically late summer 2026). Things can shift quickly — [Subscribe or follow us ↗](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates. --- ## Where Can You Use Your South Dakota EBT Card? **In stores**: Any USDA-authorized retailer — including Walmart, Hy-Vee, Lewis Drug (food items), Sunshine Foods, Family Dollar (select items), and most independent grocery stores. Look for the EBT/SNAP sign at checkout. **Online**: South Dakota SNAP recipients can shop online through **Amazon Fresh** and **Walmart Grocery** — select SNAP/EBT as your payment method at checkout. Delivery fees are not covered by SNAP (only the groceries themselves). **Farmers markets**: Many South Dakota farmers markets accept EBT. Some participate in the Double Up Food Bucks program, which matches SNAP dollars on locally-grown produce. **What SNAP does NOT cover**: Alcohol, tobacco, vitamins/supplements, hot prepared foods, fast food, pet food, household supplies, or hygiene products. ## Other Benefits If You Receive South Dakota SNAP SNAP often unlocks access to other programs: - **Medicaid / CHIP**: Receiving SNAP can streamline Medicaid enrollment for adults and children. Apply through [South Dakota DSS Benefits](https://dss.sd.gov/foodassistance). - **LIHEAP**: Low Income Home Energy Assistance helps with utility bills. Contact your local community action agency or call 2-1-1. - **WIC**: Nutrition support for pregnant women, new mothers, and children under 5. Separate application through your state health department. - **Summer EBT (SUN Bucks)**: Extra food benefits for school-age children during summer months. Check with your state for 2026 enrollment. - **Free/reduced school meals**: SNAP households automatically qualify. Register through your child’s school district. For a full overview of federal SNAP amounts and recent cuts, see the [2026 SNAP benefits guide](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). See also: [South Dakota unemployment benefit amounts and eligibility rules](https://savingtoinvest.com/south-dakota-unemployment-benefits/). --- ## South Dakota SNAP: How Benefits Have Changed (2023–2026) PeriodMax Benefit (Family of 4)Key DevelopmentFY2023 (Oct 2022 – Sep 2023)$939/monthPandemic Emergency Allotments ended — biggest single drop since the pandemicFY2024 (Oct 2023 – Sep 2024)$973/month~3.7% COLA increase; first full year post-pandemicFY2025 (Oct 2024 – Sep 2025)$975/monthMinimal ~0.2% increase; OBBB signed into lawFY2026 (Oct 2025 – Sep 2026)$994/month~2% increase; expanded work requirements take effect The end of Emergency Allotments in early 2023 was the biggest disruption in recent memory — some households that had received the maximum saw benefits drop to $23/month. FY2026 numbers are all standard formula, no pandemic additions. Frequently Asked Questions QHow much is SNAP in South Dakota in 2026? AThe maximum monthly SNAP benefit in South Dakota (SD) for FY2026 is $298 for a single person, $546 for 2 people, $785 for 3 people, $994 for a family of 4, and $1,183 for 5 people. Most households receive less than the maximum based on net income after deductions. QWhen does SNAP deposit to my South Dakota EBT card? ABenefits load 10th (all recipients). Check your approval letter or South Dakota DSS Benefits for your exact deposit date. QWhat are the income limits for South Dakota SNAP in 2026? ASouth Dakota uses a gross income limit of 130% FPL — approximately $1,632/month for a single person or $3,380/month for a family of four. Net income (after deductions) must be at or below 100% FPL. QHow do I apply for SNAP in South Dakota? AApply online at https://dss.sd.gov/foodassistance, in person at a local South Dakota Department of Social Services (DSS) office, or by calling 605-773-3165 or 2-1-1. Processing takes up to 30 days, or 7 days if you qualify for expedited benefits. QWhat can I buy with my South Dakota EBT card? ASNAP covers groceries including produce, meat, dairy, bread, cereals, and packaged foods. You can shop in-store at most major grocery chains and online through Amazon Fresh and Walmart Grocery. SNAP does not cover alcohol, tobacco, hot prepared foods, vitamins, or non-food household items. QWhat do I do if my South Dakota SNAP application is denied? ARequest a fair hearing within 90 days of your denial notice. Apply online at https://dss.sd.gov/foodassistance, in person at a local office, or by calling 605-773-3165 or 2-1-1. The agency must explain the specific reason for denial — gather documentation addressing that reason before your hearing. QDid SNAP benefits change in 2026? AYes. The One Big Beautiful Bill (OBBB) expanded work requirements to include adults aged 55–64 and parents of children over 14. It cuts federal SNAP funding by $186 billion over 10 years and shifts some benefit costs to states starting in 2028. QCan I use my South Dakota EBT card at Walmart or Amazon? AYes to both. Walmart accepts South Dakota EBT in-store and online at walmart.com. Amazon Fresh also accepts SNAP/EBT online — select it as your payment method at checkout. Delivery fees are not covered, only eligible food items. **Categories:** Taxes and Retirement --- ### [South Carolina SNAP Benefits: 2027 Outlook, Current 2026 Amounts Up to $994/Month](https://savingtoinvest.com/south-carolina-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) **Published:** June 22, 2026 **Author:** Andy **Content:** ### Key Takeaways - FY2026 max SNAP benefit: $298/month for 1 person, $994/month for a family of 4 - Benefits load on your South Carolina EBT Card 1st–10th - The OBBB expanded work requirements to adults 55–64 and parents of teens — if you were exempt before, check whether you still are - South Carolina uses the federal 130% FPL income limit — the minimum floor, no expansion - Apply or recertify at South Carolina DSS Benefits or call 1-800-768-5700 If you’re applying for or renewing SNAP in South Carolina, benefits load onto the South Carolina EBT Card 1st–10th through South Carolina DSS Benefits. The fiscal year 2026 maximum for a family of four is $994 a month, up from $975 last year. The open question now is what USDA sets for FY2027, expected in late summer. But 2026 is a more complicated year than most for SNAP. The One Big Beautiful Bill (OBBB) made some of the biggest cuts to the program in its history — and some South Carolina residents who qualified last year may not qualify now. Here’s what changed, what you can expect to receive, and what to do if you’re denied. Covered in this Article: [Toggle](#) - [2026 SNAP Benefit Amounts in South Carolina](#2026_SNAP_Benefit_Amounts_in_South_Carolina) - [When Does SNAP Deposit to Your South Carolina EBT Card?](#When_Does_SNAP_Deposit_to_Your_South_Carolina_EBT_Card) - [What’s Changed in 2026: OBBB Work Requirements](#Whats_Changed_in_2026_OBBB_Work_Requirements) - [How to Qualify for South Carolina SNAP in 2026](#How_to_Qualify_for_South_Carolina_SNAP_in_2026) - [How to Apply](#How_to_Apply) - [What to Do If Your South Carolina SNAP Application Is Denied](#What_to_Do_If_Your_South_Carolina_SNAP_Application_Is_Denied) - [What to Watch: Potential SNAP Changes Ahead](#What_to_Watch_Potential_SNAP_Changes_Ahead) - [Where Can You Use Your South Carolina EBT Card?](#Where_Can_You_Use_Your_South_Carolina_EBT_Card) - [Other Benefits If You Receive South Carolina SNAP](#Other_Benefits_If_You_Receive_South_Carolina_SNAP) - [South Carolina SNAP: How Benefits Have Changed (2023–2026)](#South_Carolina_SNAP_How_Benefits_Have_Changed_2023%E2%80%932026) ## 2026 SNAP Benefit Amounts in South Carolina South Carolina uses the standard federal SNAP benefit schedule. Maximum monthly allotments for FY2026 (October 1, 2025 – September 30, 2026): Household SizeMax Monthly BenefitGross Income Limit (130% FPL)Net Income Limit (100% FPL)1 person$298$1,632/mo$1,255/mo2 people$546$2,214/mo$1,703/mo3 people$785$2,798/mo$2,152/mo4 people$994$3,380/mo$2,600/mo5 people$1,183$3,964/mo$3,049/mo6 people$1,421$4,546/mo$3,497/mo7 people$1,571$5,128/mo$3,945/mo8+ people$1,791+—— **South Carolina (SC) uses the federal 130% FPL income standard** — the minimum floor, no expansion. A family of four must have gross income at or below **$3,380/month** to qualify. This is one of the stricter limits nationally. Most households receive less than the maximum. Your actual benefit depends on net income after deductions (rent, utilities, child care, medical expenses for elderly or disabled members). ### How Much Would a Family of 4 Actually Receive in South Carolina? Here are two realistic examples to show the range: **Scenario A — Lower-income family** A family of 4 with gross monthly income of **$1,500** (one parent working part-time): - Gross income: $1,500 ✓ (within $3,380/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$300 - Net income: $983 - 30% of net income: $295 - **Monthly SNAP benefit: $994 − $295 = $699** **Scenario B — Working family (moderate income)** A family of 4 with gross monthly income of **$2,000**: - Gross income: $2,000 ✓ (within $3,380/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$400 - Net income: $1,383 - 30% of net income: $415 - **Monthly SNAP benefit: $994 − $415 = $579** The 20% earned income deduction rewards working households. Additional deductions for excess shelter costs, child care, or medical expenses (elderly/disabled) can increase your benefit further. ## When Does SNAP Deposit to Your South Carolina EBT Card? South Carolina (SC) distributes SNAP benefits based on the **last digit of your case number**. Benefits load between the 1st–10th each month: Case # Last DigitDeposit Date11st22nd33rd44th55th66th77th88th99th010th Your case number is on your approval letter or available through [South Carolina DSS Benefits](https://apply.dss.sc.gov). Call **1-800-768-5700** if you’re unsure of your deposit date — it stays the same each month once you’re approved. TANF cash benefits (if applicable) follow a separate deposit schedule. ## What’s Changed in 2026: OBBB Work Requirements The OBBB made several significant changes that took effect in late 2025 and early 2026: **Expanded work requirements**: Adults aged **55–64** who are able to work are now subject to SNAP work requirements for the first time. Previously the cutoff was 49. Parents whose youngest child is **over 14** are also now subject to work rules. **20 hours per week or 80 hours per month** — that’s the threshold for Able-Bodied Adults Without Dependents (ABAWDs) aged 18–64. Work, job training, or approved volunteer activity all count. Fail to meet the requirement and benefits are limited to **3 months in any 36-month period**. **State cost-sharing starting in 2028**: States will begin paying a share of benefit costs based on their SNAP payment error rate. This is new territory for all state budgets. **$186 billion in total federal SNAP cuts** over the next decade. If you were receiving SNAP in 2024 and haven’t recertified recently, check your current eligibility — the rules have shifted. ## How to Qualify for South Carolina SNAP in 2026 **Income**: Gross income must be at or below 130% FPL (see table above). Net income (after deductions) must be at or below 100% FPL. **Residency**: Must be a South Carolina resident. **Citizenship**: U.S. citizens and certain lawfully present immigrants qualify. Undocumented individuals are not eligible for federal SNAP benefits. **Work requirements**: Most able-bodied adults 18–64 must register for work and accept suitable employment. ABAWDs must meet the 80-hour/month work, training, or volunteer threshold. New in 2026: adults 55–64 are now included. ## How to Apply - **Online**: [South Carolina DSS Benefits](https://apply.dss.sc.gov) — fastest option, available 24/7 - **In person**: Any local South Carolina Department of Social Services office - **Phone**: 1-800-768-5700 South Carolina has up to **30 days** to process your application — or **7 days** if you qualify for expedited SNAP (very low income or resources). Benefits are backdated to your application date. Things can shift quickly. I’ll update this page when anything changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What to Do If Your South Carolina SNAP Application Is Denied Denials are common and often appealable. The most frequent reasons are income slightly over the stated limit, missing documentation, and work requirement issues — all of which can be addressed. **Step 1**: Read your denial notice carefully. South Carolina is required to explain the specific reason in writing. **Step 2**: Gather documentation that addresses the reason — recent pay stubs, rent receipts, proof of work activities, or a letter from your employer if hours changed. **Step 3**: Request a fair hearing within **90 days** of your denial. You can request one online at [South Carolina DSS Benefits](https://apply.dss.sc.gov), in person at your local South Carolina Department of Social Services office, or by calling **1-800-768-5700**. **Step 4**: While your appeal is pending, you can continue receiving benefits if you were previously approved — request continued benefits when you file your hearing request. --- ## What to Watch: Potential SNAP Changes Ahead **State cost-sharing (FY2027–2028)**: Starting in FY2027, South Carolina will begin paying a share of SNAP benefit costs — a first for all states. The percentage depends on South Carolina’s payment error rate. If cost pressure builds, expect tighter eligibility administration at the state level. **Work requirement enforcement**: Federal guidance on the expanded age 55–64 rules is still evolving. States are implementing these in phases — if you’re in the newly covered age range, check with your caseworker. **FY2027 COLA adjustment**: Benefits update October 1. I’ll post FY2027 amounts here when USDA releases them (typically late summer 2026). Things can shift quickly — [Subscribe or follow us ↗](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates. --- ## Where Can You Use Your South Carolina EBT Card? **In stores**: Any USDA-authorized retailer — including Walmart, Publix, Bi-Lo, Food Lion, Ingles, ALDI, and most independent grocery stores. Look for the EBT/SNAP sign at checkout. **Online**: South Carolina SNAP recipients can shop online through **Amazon Fresh** and **Walmart Grocery** — select SNAP/EBT as your payment method at checkout. Delivery fees are not covered by SNAP (only the groceries themselves). **Farmers markets**: Many South Carolina farmers markets accept EBT. Some participate in the Double Up Food Bucks program, which matches SNAP dollars on locally-grown produce. **What SNAP does NOT cover**: Alcohol, tobacco, vitamins/supplements, hot prepared foods, fast food, pet food, household supplies, or hygiene products. ## Other Benefits If You Receive South Carolina SNAP SNAP often unlocks access to other programs: - **Medicaid / CHIP**: Receiving SNAP can streamline Medicaid enrollment for adults and children. Apply through [South Carolina DSS Benefits](https://apply.dss.sc.gov). - **LIHEAP**: Low Income Home Energy Assistance helps with utility bills. Contact your local community action agency or call 2-1-1. - **WIC**: Nutrition support for pregnant women, new mothers, and children under 5. Separate application through your state health department. - **Summer EBT (SUN Bucks)**: Extra food benefits for school-age children during summer months. Check with your state for 2026 enrollment. - **Free/reduced school meals**: SNAP households automatically qualify. Register through your child’s school district. For a full overview of federal SNAP amounts and recent cuts, see the [2026 SNAP benefits guide](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). See also: [South Carolina unemployment benefit amounts and eligibility rules](https://savingtoinvest.com/south-carolina-unemployment-benefits/). --- ## South Carolina SNAP: How Benefits Have Changed (2023–2026) PeriodMax Benefit (Family of 4)Key DevelopmentFY2023 (Oct 2022 – Sep 2023)$939/monthPandemic Emergency Allotments ended — biggest single drop since the pandemicFY2024 (Oct 2023 – Sep 2024)$973/month~3.7% COLA increase; first full year post-pandemicFY2025 (Oct 2024 – Sep 2025)$975/monthMinimal ~0.2% increase; OBBB signed into lawFY2026 (Oct 2025 – Sep 2026)$994/month~2% increase; expanded work requirements take effect The end of Emergency Allotments in early 2023 was the biggest disruption in recent memory — some households that had received the maximum saw benefits drop to $23/month. FY2026 numbers are all standard formula, no pandemic additions. Frequently Asked Questions QHow much is SNAP in South Carolina in 2026? AThe maximum monthly SNAP benefit in South Carolina (SC) for FY2026 is $298 for a single person, $546 for 2 people, $785 for 3 people, $994 for a family of 4, and $1,183 for 5 people. Most households receive less than the maximum based on net income after deductions. QWhen does SNAP deposit to my South Carolina EBT card? ABenefits load 1st–10th. Check your approval letter or South Carolina DSS Benefits for your exact deposit date. QWhat are the income limits for South Carolina SNAP in 2026? ASouth Carolina uses a gross income limit of 130% FPL — approximately $1,632/month for a single person or $3,380/month for a family of four. Net income (after deductions) must be at or below 100% FPL. QHow do I apply for SNAP in South Carolina? AApply online at https://apply.dss.sc.gov, in person at a local South Carolina Department of Social Services (DSS) office, or by calling 1-800-768-5700. Processing takes up to 30 days, or 7 days if you qualify for expedited benefits. QWhat can I buy with my South Carolina EBT card? ASNAP covers groceries including produce, meat, dairy, bread, cereals, and packaged foods. You can shop in-store at most major grocery chains and online through Amazon Fresh and Walmart Grocery. SNAP does not cover alcohol, tobacco, hot prepared foods, vitamins, or non-food household items. QWhat do I do if my South Carolina SNAP application is denied? ARequest a fair hearing within 90 days of your denial notice. Apply online at https://apply.dss.sc.gov, in person at a local office, or by calling 1-800-768-5700. The agency must explain the specific reason for denial — gather documentation addressing that reason before your hearing. QDid SNAP benefits change in 2026? AYes. The One Big Beautiful Bill (OBBB) expanded work requirements to include adults aged 55–64 and parents of children over 14. It cuts federal SNAP funding by $186 billion over 10 years and shifts some benefit costs to states starting in 2028. QCan I use my South Carolina EBT card at Walmart or Amazon? AYes to both. Walmart accepts South Carolina EBT in-store and online at walmart.com. Amazon Fresh also accepts SNAP/EBT online — select it as your payment method at checkout. Delivery fees are not covered, only eligible food items. **Categories:** Taxes and Retirement --- ### [Rhode Island SNAP Benefits: 2027 Outlook, Current 2026 Amounts Up to $994/Month](https://savingtoinvest.com/rhode-island-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) **Published:** June 22, 2026 **Author:** Andy **Content:** ### Key Takeaways - FY2026 max SNAP benefit: $298/month for 1 person, $994/month for a family of 4 - Benefits load on your Rhode Island EBT Card 1st (all recipients) - The OBBB expanded work requirements to adults 55–64 and parents of teens — if you were exempt before, check whether you still are - Rhode Island uses BBCE at 185% FPL — more households qualify than in standard states - Apply or recertify at Rhode Island DHS Benefits or call 401-462-5300 Rhode Island uses Broad-Based Categorical Eligibility at 185% of the poverty line, so more households qualify here than in states that stick to the federal floor. Either way, the fiscal year 2026 maximum benefit is the same nationwide: $994 a month for a family of four, up from $975 last year. The open question now is what USDA sets for FY2027, expected in late summer. But 2026 is a more complicated year than most for SNAP. The One Big Beautiful Bill (OBBB) made some of the biggest cuts to the program in its history — and some Rhode Island residents who qualified last year may not qualify now. Here’s what changed, what you can expect to receive, and what to do if you’re denied. Covered in this Article: [Toggle](#) - [2026 SNAP Benefit Amounts in Rhode Island](#2026_SNAP_Benefit_Amounts_in_Rhode_Island) - [When Does SNAP Deposit to Your Rhode Island EBT Card?](#When_Does_SNAP_Deposit_to_Your_Rhode_Island_EBT_Card) - [What’s Changed in 2026: OBBB Work Requirements](#Whats_Changed_in_2026_OBBB_Work_Requirements) - [How to Qualify for Rhode Island SNAP in 2026](#How_to_Qualify_for_Rhode_Island_SNAP_in_2026) - [How to Apply](#How_to_Apply) - [What to Do If Your Rhode Island SNAP Application Is Denied](#What_to_Do_If_Your_Rhode_Island_SNAP_Application_Is_Denied) - [What to Watch: Potential SNAP Changes Ahead](#What_to_Watch_Potential_SNAP_Changes_Ahead) - [Where Can You Use Your Rhode Island EBT Card?](#Where_Can_You_Use_Your_Rhode_Island_EBT_Card) - [Other Benefits If You Receive Rhode Island SNAP](#Other_Benefits_If_You_Receive_Rhode_Island_SNAP) - [Rhode Island SNAP: How Benefits Have Changed (2023–2026)](#Rhode_Island_SNAP_How_Benefits_Have_Changed_2023%E2%80%932026) ## 2026 SNAP Benefit Amounts in Rhode Island Rhode Island uses the standard federal SNAP benefit schedule. Maximum monthly allotments for FY2026 (October 1, 2025 – September 30, 2026): Household SizeMax Monthly BenefitGross Income Limit (185% FPL)Net Income Limit (100% FPL)1 person$298$2,322/mo$1,255/mo2 people$546$3,151/mo$1,703/mo3 people$785$3,981/mo$2,152/mo4 people$994$4,810/mo$2,600/mo5 people$1,183$5,641/mo$3,049/mo6 people$1,421$6,469/mo$3,497/mo7 people$1,571$7,298/mo$3,945/mo8+ people$1,791+—— **Rhode Island (RI) uses BBCE at 185% FPL**, well above the federal floor. A family of four can qualify with gross income up to **$4,810/month** — about $1,430/month more than in non-BBCE states. Most households receive less than the maximum. Your actual benefit depends on net income after deductions (rent, utilities, child care, medical expenses for elderly or disabled members). ### How Much Would a Family of 4 Actually Receive in Rhode Island? Here are two realistic examples to show the range: **Scenario A — Lower-income family** A family of 4 with gross monthly income of **$1,500** (one parent working part-time): - Gross income: $1,500 ✓ (within $4,810/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$300 - Net income: $983 - 30% of net income: $295 - **Monthly SNAP benefit: $994 − $295 = $699** **Scenario B — Working family (moderate income)** A family of 4 with gross monthly income of **$2,500**: - Gross income: $2,500 ✓ (within $4,810/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$500 - Net income: $1,783 - 30% of net income: $535 - **Monthly SNAP benefit: $994 − $535 = $459** The 20% earned income deduction rewards working households. Additional deductions for excess shelter costs, child care, or medical expenses (elderly/disabled) can increase your benefit further. ## When Does SNAP Deposit to Your Rhode Island EBT Card? Rhode Island (RI) distributes SNAP benefits on a **fixed date** — benefits load on the **1st (all recipients)** for all recipients. Your benefit date is on your approval letter or at [Rhode Island DHS Benefits](https://www.dhs.ri.gov/snap). TANF cash benefits (if applicable) follow a separate deposit schedule. ## What’s Changed in 2026: OBBB Work Requirements The OBBB made several significant changes that took effect in late 2025 and early 2026: **Expanded work requirements**: Adults aged **55–64** who are able to work are now subject to SNAP work requirements for the first time. Previously the cutoff was 49. Parents whose youngest child is **over 14** are also now subject to work rules. **20 hours per week or 80 hours per month** — that’s the threshold for Able-Bodied Adults Without Dependents (ABAWDs) aged 18–64. Work, job training, or approved volunteer activity all count. Fail to meet the requirement and benefits are limited to **3 months in any 36-month period**. **State cost-sharing starting in 2028**: States will begin paying a share of benefit costs based on their SNAP payment error rate. This is new territory for all state budgets. **$186 billion in total federal SNAP cuts** over the next decade. If you were receiving SNAP in 2024 and haven’t recertified recently, check your current eligibility — the rules have shifted. ## How to Qualify for Rhode Island SNAP in 2026 **Income**: Gross income must be at or below 185% FPL (see table above). Net income (after deductions) must be at or below 100% FPL. **Residency**: Must be a Rhode Island resident. **Citizenship**: U.S. citizens and certain lawfully present immigrants qualify. Undocumented individuals are not eligible for federal SNAP benefits. **Work requirements**: Most able-bodied adults 18–64 must register for work and accept suitable employment. ABAWDs must meet the 80-hour/month work, training, or volunteer threshold. New in 2026: adults 55–64 are now included. ## How to Apply - **Online**: [Rhode Island DHS Benefits](https://www.dhs.ri.gov/snap) — fastest option, available 24/7 - **In person**: Any local Rhode Island Department of Human Services office - **Phone**: 401-462-5300 Rhode Island has up to **30 days** to process your application — or **7 days** if you qualify for expedited SNAP (very low income or resources). Benefits are backdated to your application date. Things can shift quickly. I’ll update this page when anything changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What to Do If Your Rhode Island SNAP Application Is Denied Denials are common and often appealable. The most frequent reasons are income slightly over the stated limit, missing documentation, and work requirement issues — all of which can be addressed. **Step 1**: Read your denial notice carefully. Rhode Island is required to explain the specific reason in writing. **Step 2**: Gather documentation that addresses the reason — recent pay stubs, rent receipts, proof of work activities, or a letter from your employer if hours changed. **Step 3**: Request a fair hearing within **90 days** of your denial. You can request one online at [Rhode Island DHS Benefits](https://www.dhs.ri.gov/snap), in person at your local Rhode Island Department of Human Services office, or by calling **401-462-5300**. **Step 4**: While your appeal is pending, you can continue receiving benefits if you were previously approved — request continued benefits when you file your hearing request. --- ## What to Watch: Potential SNAP Changes Ahead **State cost-sharing (FY2027–2028)**: Starting in FY2027, Rhode Island will begin paying a share of SNAP benefit costs — a first for all states. The percentage depends on Rhode Island’s payment error rate. If cost pressure builds, expect tighter eligibility administration at the state level. **Work requirement enforcement**: Federal guidance on the expanded age 55–64 rules is still evolving. States are implementing these in phases — if you’re in the newly covered age range, check with your caseworker. **BBCE at risk**: Rhode Island’s 185% FPL income limit narrowly survived the OBBB — earlier versions of the legislation would have eliminated it. If BBCE is eliminated in future legislation, the income limit for a family of 4 would drop from $4,810/month to $3,380/month. **FY2027 COLA adjustment**: Benefits update October 1. I’ll post FY2027 amounts here when USDA releases them (typically late summer 2026). Things can shift quickly — [Subscribe or follow us ↗](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates. --- ## Where Can You Use Your Rhode Island EBT Card? **In stores**: Any USDA-authorized retailer — including Walmart, Stop & Shop, Dave’s Fresh Marketplace, Shaw’s, ALDI, and most independent grocery stores. Look for the EBT/SNAP sign at checkout. **Online**: Rhode Island SNAP recipients can shop online through **Amazon Fresh** and **Walmart Grocery** — select SNAP/EBT as your payment method at checkout. Delivery fees are not covered by SNAP (only the groceries themselves). **Farmers markets**: Many Rhode Island farmers markets accept EBT. Some participate in the Double Up Food Bucks program, which matches SNAP dollars on locally-grown produce. **What SNAP does NOT cover**: Alcohol, tobacco, vitamins/supplements, hot prepared foods, fast food, pet food, household supplies, or hygiene products. ## Other Benefits If You Receive Rhode Island SNAP SNAP often unlocks access to other programs: - **Medicaid / CHIP**: Receiving SNAP can streamline Medicaid enrollment for adults and children. Apply through [Rhode Island DHS Benefits](https://www.dhs.ri.gov/snap). - **LIHEAP**: Low Income Home Energy Assistance helps with utility bills. Contact your local community action agency or call 2-1-1. - **WIC**: Nutrition support for pregnant women, new mothers, and children under 5. Separate application through your state health department. - **Summer EBT (SUN Bucks)**: Extra food benefits for school-age children during summer months. Check with your state for 2026 enrollment. - **Free/reduced school meals**: SNAP households automatically qualify. Register through your child’s school district. For a full overview of federal SNAP amounts and recent cuts, see the [2026 SNAP benefits guide](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). See also: [Rhode Island unemployment benefit amounts and eligibility rules](https://savingtoinvest.com/rhode-island-unemployment-benefits/). --- ## Rhode Island SNAP: How Benefits Have Changed (2023–2026) PeriodMax Benefit (Family of 4)Key DevelopmentFY2023 (Oct 2022 – Sep 2023)$939/monthPandemic Emergency Allotments ended — biggest single drop since the pandemicFY2024 (Oct 2023 – Sep 2024)$973/month~3.7% COLA increase; first full year post-pandemicFY2025 (Oct 2024 – Sep 2025)$975/monthMinimal ~0.2% increase; OBBB signed into lawFY2026 (Oct 2025 – Sep 2026)$994/month~2% increase; expanded work requirements take effect The end of Emergency Allotments in early 2023 was the biggest disruption in recent memory — some households that had received the maximum saw benefits drop to $23/month. FY2026 numbers are all standard formula, no pandemic additions. Frequently Asked Questions QHow much is SNAP in Rhode Island in 2026? AThe maximum monthly SNAP benefit in Rhode Island (RI) for FY2026 is $298 for a single person, $546 for 2 people, $785 for 3 people, $994 for a family of 4, and $1,183 for 5 people. Most households receive less than the maximum based on net income after deductions. QWhen does SNAP deposit to my Rhode Island EBT card? ABenefits load 1st (all recipients). Check your approval letter or Rhode Island DHS Benefits for your exact deposit date. QWhat are the income limits for Rhode Island SNAP in 2026? ARhode Island uses a gross income limit of 185% FPL — approximately $2,322/month for a single person or $4,810/month for a family of four. Net income (after deductions) must be at or below 100% FPL. QHow do I apply for SNAP in Rhode Island? AApply online at https://www.dhs.ri.gov/snap, in person at a local Rhode Island Department of Human Services (DHS) office, or by calling 401-462-5300. Processing takes up to 30 days, or 7 days if you qualify for expedited benefits. QWhat can I buy with my Rhode Island EBT card? ASNAP covers groceries including produce, meat, dairy, bread, cereals, and packaged foods. You can shop in-store at most major grocery chains and online through Amazon Fresh and Walmart Grocery. SNAP does not cover alcohol, tobacco, hot prepared foods, vitamins, or non-food household items. QWhat do I do if my Rhode Island SNAP application is denied? ARequest a fair hearing within 90 days of your denial notice. Apply online at https://www.dhs.ri.gov/snap, in person at a local office, or by calling 401-462-5300. The agency must explain the specific reason for denial — gather documentation addressing that reason before your hearing. QDid SNAP benefits change in 2026? AYes. The One Big Beautiful Bill (OBBB) expanded work requirements to include adults aged 55–64 and parents of children over 14. It cuts federal SNAP funding by $186 billion over 10 years and shifts some benefit costs to states starting in 2028. QCan I use my Rhode Island EBT card at Walmart or Amazon? AYes to both. Walmart accepts Rhode Island EBT in-store and online at walmart.com. Amazon Fresh also accepts SNAP/EBT online — select it as your payment method at checkout. Delivery fees are not covered, only eligible food items. **Categories:** Taxes and Retirement --- ### [Florida SNAP Benefits: 2027 Outlook, Current 2026 Amounts Up to $994/Month](https://savingtoinvest.com/florida-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) **Published:** June 22, 2026 **Author:** Andy **Content:** ### Key Takeaways - FY2026 max SNAP benefit: $298/month for 1 person, $994/month for a family of 4 - Benefits load on your Florida EBT Card between the 1st–28th, based on the last digit of your case number - The OBBB expanded work requirements to adults 55–64 and parents of teens — if you were exempt before, check whether you still are - Florida's BBCE rule sets the income limit at 200% FPL — higher than 36 other states — so more households qualify here than in most of the country - Apply or recertify at ACCESS Florida or call 850-300-4323 Florida uses Broad-Based Categorical Eligibility at 200% of the poverty line, so more households qualify here than in states that stick to the federal floor. Either way, the fiscal year 2026 maximum benefit is the same nationwide: $994 a month for a family of four, up from $975 last year. The open question now is what USDA sets for FY2027, expected in late summer. But 2026 is a more complicated year than most for SNAP. The One Big Beautiful Bill (OBBB) made some of the biggest cuts to the program in its history — and some Florida residents who qualified last year may not qualify now. Here’s what changed, what you can expect to receive, and what to do if you’re denied. Covered in this Article: [Toggle](#) - [2026 SNAP Benefit Amounts in Florida](#2026_SNAP_Benefit_Amounts_in_Florida) - [When Does SNAP Deposit to Your Florida EBT Card?](#When_Does_SNAP_Deposit_to_Your_Florida_EBT_Card) - [What’s Changed in 2026: OBBB Work Requirements](#Whats_Changed_in_2026_OBBB_Work_Requirements) - [How to Qualify for Florida SNAP in 2026](#How_to_Qualify_for_Florida_SNAP_in_2026) - [How to Apply](#How_to_Apply) - [What to Do If Your Florida SNAP Application Is Denied](#What_to_Do_If_Your_Florida_SNAP_Application_Is_Denied) - [What to Watch: Potential SNAP Changes Ahead](#What_to_Watch_Potential_SNAP_Changes_Ahead) - [Where Can You Use Your Florida EBT Card?](#Where_Can_You_Use_Your_Florida_EBT_Card) - [Other Benefits If You Receive Florida SNAP](#Other_Benefits_If_You_Receive_Florida_SNAP) - [Florida SNAP: How Benefits Have Changed (2023–2026)](#Florida_SNAP_How_Benefits_Have_Changed_2023%E2%80%932026) ## 2026 SNAP Benefit Amounts in Florida Florida uses the standard federal SNAP benefit schedule. Maximum monthly allotments for FY2026 (October 1, 2025 – September 30, 2026): Household SizeMax Monthly BenefitGross Income Limit (200% FPL)Net Income Limit (100% FPL)1 person$298$2,510/mo$1,255/mo2 people$546$3,406/mo$1,703/mo3 people$785$4,304/mo$2,152/mo4 people$994$5,200/mo$2,600/mo5 people$1,183$6,098/mo$3,049/mo6 people$1,421$6,994/mo$3,497/mo7 people$1,571$7,890/mo$3,945/mo8+ people$1,791+—— **Why Florida’s income limits are higher than most states**: Florida uses Broad-Based Categorical Eligibility (BBCE), which sets the gross income limit at 200% of the federal poverty level. The federal floor is only 130% FPL. That means a family of four earning up to $5,200/month can qualify in Florida — compared to just $3,380/month in the 14 states that use the federal standard. If you were told you earn too much in another state, you may still qualify here. Most households receive less than the maximum. Your actual benefit depends on net income after deductions. ### How Much Would a Family of 4 Actually Receive? Here are two realistic scenarios to show the range: **Scenario A — Lower-income family (closer to the maximum)** A family of 4 with gross monthly income of **$1,500** (one parent working part-time): - Gross income: $1,500 ✓ (well within $5,200 limit) - Standard deduction: −$217 - 20% earned income deduction: −$300 - Net income: $983 - 30% of net income: $295 - **Monthly SNAP benefit: $994 − $295 = $699** **Scenario B — Working family (moderate income)** A family of 4 with gross monthly income of **$3,200** (one parent full-time, one part-time): - Gross income: $3,200 ✓ (within $5,200 limit) - Standard deduction: −$217 - 20% earned income deduction: −$640 - Net income: $2,343 - 30% of net income: $703 - **Monthly SNAP benefit: $994 − $703 = $291** The 20% earned income deduction rewards working households — it reduces the amount counted against you. Additional deductions (excess shelter costs, child care, medical expenses for elderly/disabled members) can lower your net income further and increase your benefit. ## When Does SNAP Deposit to Your Florida EBT Card? Florida distributes SNAP benefits on a staggered schedule based on the **last digit of your case number**. Benefits load between the 1st and 28th of each month, on the same date every month: Case # Last DigitDeposit Date11st of month23rd of month35th of month47th of month59th of month611th of month714th of month816th of month921st of month028th of month Your case number is on your approval letter or available through [ACCESS Florida](https://www.myflorida.com/accessflorida). If you’re not sure of your deposit date, log in or call **850-300-4323** — it’s the same date every month once you’re approved. TANF cash benefits (if applicable) follow a separate deposit schedule. ## What’s Changed in 2026: OBBB Work Requirements The OBBB made several significant changes that took effect in late 2025 and early 2026: **Expanded work requirements**: Adults aged **55–64** who are able to work are now subject to SNAP work requirements for the first time. Previously the cutoff was 49. Parents whose youngest child is **over 14** are also now subject to work rules — previously parents with any child under 18 were exempt. **20 hours per week or 80 hours per month** — that’s the threshold for Able-Bodied Adults Without Dependents (ABAWDs) aged 18–64. Work, job training, or approved volunteer activity all count. Fail to meet the requirement and you’re limited to **3 months of SNAP in any 36-month period**. **State cost-sharing starting in 2028**: States will begin paying a share of benefit costs based on their SNAP payment error rate. **$186 billion in total federal SNAP cuts** over the next decade. If you were receiving SNAP in 2024 and haven’t recertified recently, it’s worth checking your current eligibility. ## How to Qualify for Florida SNAP in 2026 **Income**: Gross income must be at or below 200% FPL (see table above). If you pass the gross test under BBCE, Florida waives the asset test for most households. **Residency**: Must be a Florida resident. **Citizenship**: U.S. citizens and certain lawfully present immigrants qualify. Undocumented individuals are not eligible for federal SNAP benefits. **Work requirements**: Most able-bodied adults 18–64 must register for work and accept suitable employment. ABAWDs must meet the 80-hour/month work, training, or volunteer threshold. New in 2026: adults 55–64 are now included. ## How to Apply - **Online**: [ACCESS Florida](https://www.myflorida.com/accessflorida) — fastest option, available 24/7 - **In person**: Any Florida Department of Children and Families office - **Phone**: 850-300-4323 Florida has up to **30 days** to process your application — or **7 days** if you qualify for expedited SNAP (very low income or resources). Benefits are backdated to your application date. Things can shift quickly. I’ll update this page when anything changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What to Do If Your Florida SNAP Application Is Denied Denials are common and often appealable. The most frequent reasons in Florida are income slightly over the stated limit, missing documentation, and work requirement issues — all of which can be addressed. **Step 1**: Read your denial notice carefully. Florida is required to explain the specific reason in writing. **Step 2**: Gather documentation that addresses the reason — recent pay stubs, rent receipts, proof of work activities, or a letter from your employer if hours changed. **Step 3**: Request a fair hearing within **90 days** of your denial. You can request one online at [ACCESS Florida](https://www.myflorida.com/accessflorida), in person at your local DCF office, or by calling **850-300-4323**. **Step 4**: While your appeal is pending, you can continue receiving benefits if you were previously approved — request continued benefits when you file your hearing request. Florida’s SNAP error rate has historically been higher than the national average, which means denials are sometimes the result of processing mistakes rather than genuine ineligibility. It’s worth appealing even if you’re not sure you have a strong case. --- ## What to Watch: Potential SNAP Changes Ahead **State cost-sharing (FY2027–2028)**: Starting in FY2027, Florida will begin paying a share of SNAP benefit costs. The exact percentage depends on Florida’s payment error rate. If cost pressure builds, expect tighter eligibility administration at the state level. **Work requirement enforcement**: Federal guidance on the expanded age 55–64 rules is still evolving. Florida DCF is implementing these in phases. **BBCE at risk**: Florida’s 200% FPL rule narrowly survived the OBBB — earlier versions of the legislation would have eliminated it. It remains a target in future budget negotiations. If BBCE is eliminated, the income limit for a family of 4 would drop from $5,200/month to $3,380/month — losing eligibility for a significant share of current recipients. **FY2027 COLA adjustment**: Benefits update October 1. I’ll post FY2027 amounts here when USDA releases them (typically late summer 2026). Things can shift quickly — [Subscribe or follow us ↗](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates. --- ## Where Can You Use Your Florida EBT Card? **In stores**: Any USDA-authorized retailer — major grocery chains, Walmart, Target (food items), Costco (with membership), ALDI, Publix, Winn-Dixie, and most independent grocery stores. Look for the EBT/SNAP sign at checkout. **Online**: Florida SNAP recipients can shop online through **Amazon Fresh** and **Walmart Grocery** — select SNAP/EBT as your payment method at checkout. Delivery fees are not covered by SNAP (only the groceries themselves). **Farmers markets**: Many Florida farmers markets accept EBT. Some participate in the Double Up Food Bucks program, which matches your SNAP dollars on fresh Florida-grown produce — effectively doubling your buying power on fruits and vegetables. **What SNAP does NOT cover**: Alcohol, tobacco, vitamins/supplements, hot prepared foods (including rotisserie chicken at checkout), fast food, pet food, household supplies, or hygiene products. **A note on hot food**: The rule on hot prepared foods is strict — if a grocery store item is served hot (even from the same store), it doesn’t qualify. Cold deli items like sandwiches or cold rotisserie chicken are generally fine. ## Other Benefits If You Receive Florida SNAP SNAP often unlocks access to other programs: - **Medicaid / Florida Healthy Kids**: Receiving SNAP can streamline Medicaid enrollment. Apply at [ACCESS Florida](https://www.myflorida.com/accessflorida). - **LIHEAP**: Low Income Home Energy Assistance helps with utility bills — important in Florida’s heat. Contact your local community action agency. - **WIC**: Nutrition support for pregnant women, new mothers, and children under 5. Separate application through Florida Health. - **Summer EBT (SUN Bucks)**: Extra food benefits for school-age children during summer. Florida participated in 2024 — watch for 2026 enrollment announcements. - **Free/reduced school meals**: SNAP households automatically qualify. Register through your child’s school district. For a full state-by-state comparison, see the [SNAP benefits update for 2026](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). See also: [Florida unemployment benefit amounts and eligibility rules](https://savingtoinvest.com/florida-fl-unemployment-insurance-compensation-reemployment-assistance-benefits-program/). --- ## Florida SNAP: How Benefits Have Changed (2023–2026) PeriodMax Benefit (Family of 4)Key DevelopmentFY2023 (Oct 2022 – Sep 2023)$939/monthPandemic Emergency Allotments ended — biggest single drop since the pandemic boost beganFY2024 (Oct 2023 – Sep 2024)$973/month~3.7% COLA increase; first full year without pandemic additionsFY2025 (Oct 2024 – Sep 2025)$975/monthMinimal ~0.2% increase; OBBB signed into lawFY2026 (Oct 2025 – Sep 2026)$994/month~2% increase; expanded work requirements take effect The end of Emergency Allotments in early 2023 was the biggest disruption in recent memory — some households that had received the maximum saw benefits fall to as little as $23/month. FY2026 numbers are all standard formula, no pandemic additions. Frequently Asked Questions QHow much is SNAP in Florida in 2026? AThe maximum monthly SNAP benefit in Florida for FY2026 is $298 for a single person, $546 for 2 people, $785 for 3 people, $994 for a family of 4, and $1,183 for 5 people. Most households receive less than the maximum based on their net income after deductions. QWhen does SNAP deposit to my Florida EBT Card? AFlorida deposits SNAP benefits based on the last digit of your case number: digit 1 deposits on the 1st, digit 2 on the 3rd, digit 3 on the 5th, digit 4 on the 7th, digit 5 on the 9th, digit 6 on the 11th, digit 7 on the 14th, digit 8 on the 16th, digit 9 on the 21st, and digit 0 on the 28th. Check your case number on your approval letter or at ACCESS Florida (myflorida.com/accessflorida). QWhat are the income limits for Florida SNAP in 2026? AFlorida uses BBCE at 200% FPL — about $2,510/month for a single person or $5,200/month for a family of four. This is significantly higher than the federal floor of 130% FPL used by 14 other states. Florida also waives the asset test for most households. QHow do I apply for SNAP in Florida? AApply online at ACCESS Florida (myflorida.com/accessflorida), in person at a Florida Department of Children and Families office, or by calling 850-300-4323. Processing takes up to 30 days, or 7 days if you qualify for expedited benefits based on very low income or resources. QWhat can I buy with my Florida EBT Card? ASNAP covers groceries including produce, meat, dairy, bread, cereals, and packaged foods. You can use it in-store at Walmart, Publix, ALDI, Costco, and most major grocery chains, and online through Amazon Fresh and Walmart Grocery. SNAP does not cover alcohol, tobacco, hot prepared foods, vitamins, or non-food items. QWhat do I do if my Florida SNAP application is denied? ARequest a fair hearing within 90 days of your denial notice. You can appeal online at ACCESS Florida, in person at your local DCF office, or by calling 850-300-4323. Florida is required to tell you the specific reason for denial — gather documentation that addresses that reason before your hearing. QDid SNAP benefits change in 2026? AYes. The One Big Beautiful Bill (OBBB) expanded work requirements to include adults aged 55–64 and parents of children over 14. It also cuts federal SNAP funding by $186 billion over 10 years and shifts some benefit costs to states starting in 2028. Florida's BBCE income limit (200% FPL) narrowly survived the legislation. QCan I use my Florida EBT Card at Walmart or Amazon? AYes to both. Walmart accepts Florida EBT in-store and online at walmart.com. Amazon Fresh also accepts SNAP/EBT online — select it as your payment method at checkout. Delivery fees are not covered, only the eligible food items. **Categories:** Taxes and Retirement --- ### [Colorado SNAP Benefits: 2027 Outlook, Current 2026 Amounts Up to $994/Month](https://savingtoinvest.com/colorado-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) **Published:** June 22, 2026 **Author:** Andy **Content:** ### Key Takeaways - FY2026 max SNAP benefit: $298/month for 1 person, $994/month for a family of 4 - Benefits load on your Colorado Quest Card (EBT) 1st-10th - The OBBB expanded work requirements to adults 55-64 and parents of teens - if you were exempt before, check whether you still are - Colorado uses BBCE at 200% FPL - more households qualify than in standard states - Apply or recertify at PEAK Colorado Benefits or call 303-866-5700 PEAK Colorado Benefits handles SNAP applications and recertifications in Colorado, with benefits loading onto the Colorado Quest Card (EBT) 1st-10th. Fiscal year 2026’s maximum for a family of four is $994 a month, up $19 from last year’s $975. The open question now is what USDA sets for FY2027, expected in late summer. But 2026 is a more complicated year than most for SNAP. The One Big Beautiful Bill (OBBB) made some of the biggest cuts to the program in its history — and some Colorado residents who qualified last year may not qualify now. Here’s what changed, what you can expect to receive, and what to do if you’re denied. Covered in this Article: [Toggle](#) - [2026 SNAP Benefit Amounts in Colorado](#2026_SNAP_Benefit_Amounts_in_Colorado) - [When Does SNAP Deposit to Your Colorado EBT Card?](#When_Does_SNAP_Deposit_to_Your_Colorado_EBT_Card) - [What’s Changed in 2026: OBBB Work Requirements](#Whats_Changed_in_2026_OBBB_Work_Requirements) - [How to Qualify for Colorado SNAP in 2026](#How_to_Qualify_for_Colorado_SNAP_in_2026) - [How to Apply](#How_to_Apply) - [What to Do If Your Colorado SNAP Application Is Denied](#What_to_Do_If_Your_Colorado_SNAP_Application_Is_Denied) - [What to Watch: Potential SNAP Changes Ahead](#What_to_Watch_Potential_SNAP_Changes_Ahead) - [Where Can You Use Your Colorado EBT Card?](#Where_Can_You_Use_Your_Colorado_EBT_Card) - [Other Benefits If You Receive Colorado SNAP](#Other_Benefits_If_You_Receive_Colorado_SNAP) - [Colorado SNAP: How Benefits Have Changed (2023–2026)](#Colorado_SNAP_How_Benefits_Have_Changed_2023%E2%80%932026) ## 2026 SNAP Benefit Amounts in Colorado Colorado uses the standard federal SNAP benefit schedule. Maximum monthly allotments for FY2026 (October 1, 2025 – September 30, 2026): Household SizeMax Monthly BenefitGross Income Limit (200% FPL)Net Income Limit (100% FPL)1 person$298$2,510/mo$1,255/mo2 people$546$3,406/mo$1,703/mo3 people$785$4,304/mo$2,152/mo4 people$994$5,200/mo$2,600/mo5 people$1,183$6,098/mo$3,049/mo6 people$1,421$6,994/mo$3,497/mo7 people$1,571$7,890/mo$3,945/mo8+ people$1,791+—— **Colorado (CO) uses BBCE at 200% FPL** — significantly more generous than the 130% federal floor. A family of four can qualify with gross income up to **$5,200/month**, compared to just $3,380/month in the most restrictive states. Most households receive less than the maximum. Your actual benefit depends on net income after deductions (rent, utilities, child care, medical expenses for elderly or disabled members). ### How Much Would a Family of 4 Actually Receive in Colorado? Here are two realistic examples to show the range: **Scenario A — Lower-income family** A family of 4 with gross monthly income of **$1,500** (one parent working part-time): - Gross income: $1,500 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$300 - Net income: $983 - 30% of net income: $295 - **Monthly SNAP benefit: $994 − $295 = $699** **Scenario B — Working family (moderate income)** A family of 4 with gross monthly income of **$3,200**: - Gross income: $3,200 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$640 - Net income: $2,343 - 30% of net income: $703 - **Monthly SNAP benefit: $994 − $703 = $291** The 20% earned income deduction rewards working households. Additional deductions for excess shelter costs, child care, or medical expenses (elderly/disabled) can increase your benefit further. ## When Does SNAP Deposit to Your Colorado EBT Card? Colorado (CO) distributes SNAP benefits based on the **last digit of your SSN**. Benefits load between the 1st–10th each month: SSN Last DigitDeposit Date11st22nd33rd44th55th66th77th88th99th010th Your case number is on your approval letter or available through [PEAK Colorado Benefits](https://coloradopeak.secure.force.com). Call **303-866-5700** if you’re unsure of your deposit date — it stays the same each month once you’re approved. TANF cash benefits (if applicable) follow a separate deposit schedule. ## What’s Changed in 2026: OBBB Work Requirements The OBBB made several significant changes that took effect in late 2025 and early 2026: **Expanded work requirements**: Adults aged **55–64** who are able to work are now subject to SNAP work requirements for the first time. Previously the cutoff was 49. Parents whose youngest child is **over 14** are also now subject to work rules. **20 hours per week or 80 hours per month** — that’s the threshold for Able-Bodied Adults Without Dependents (ABAWDs) aged 18–64. Work, job training, or approved volunteer activity all count. Fail to meet the requirement and benefits are limited to **3 months in any 36-month period**. **State cost-sharing starting in 2028**: States will begin paying a share of benefit costs based on their SNAP payment error rate. This is new territory for all state budgets. **$186 billion in total federal SNAP cuts** over the next decade. If you were receiving SNAP in 2024 and haven’t recertified recently, check your current eligibility — the rules have shifted. ## How to Qualify for Colorado SNAP in 2026 **Income**: Gross income must be at or below 200% FPL (see table above). Net income (after deductions) must be at or below 100% FPL. **Residency**: Must be a Colorado resident. **Citizenship**: U.S. citizens and certain lawfully present immigrants qualify. Undocumented individuals are not eligible for federal SNAP benefits. **Work requirements**: Most able-bodied adults 18–64 must register for work and accept suitable employment. ABAWDs must meet the 80-hour/month work, training, or volunteer threshold. New in 2026: adults 55–64 are now included. ## How to Apply - **Online**: [PEAK Colorado Benefits](https://coloradopeak.secure.force.com) — fastest option, available 24/7 - **In person**: Any local Colorado Department of Human Services office - **Phone**: 303-866-5700 Colorado has up to **30 days** to process your application — or **7 days** if you qualify for expedited SNAP (very low income or resources). Benefits are backdated to your application date. Things can shift quickly. I’ll update this page when anything changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What to Do If Your Colorado SNAP Application Is Denied Denials are common and often appealable. The most frequent reasons are income slightly over the stated limit, missing documentation, and work requirement issues — all of which can be addressed. **Step 1**: Read your denial notice carefully. Colorado is required to explain the specific reason in writing. **Step 2**: Gather documentation that addresses the reason — recent pay stubs, rent receipts, proof of work activities, or a letter from your employer if hours changed. **Step 3**: Request a fair hearing within **90 days** of your denial. You can request one online at [PEAK Colorado Benefits](https://coloradopeak.secure.force.com), in person at your local Colorado Department of Human Services office, or by calling **303-866-5700**. **Step 4**: While your appeal is pending, you can continue receiving benefits if you were previously approved — request continued benefits when you file your hearing request. --- ## What to Watch: Potential SNAP Changes Ahead **State cost-sharing (FY2027–2028)**: Starting in FY2027, Colorado will begin paying a share of SNAP benefit costs — a first for all states. The percentage depends on Colorado’s payment error rate. If cost pressure builds, expect tighter eligibility administration at the state level. **Work requirement enforcement**: Federal guidance on the expanded age 55–64 rules is still evolving. States are implementing these in phases — if you’re in the newly covered age range, check with your caseworker. **BBCE at risk**: Colorado’s 200% FPL income limit narrowly survived the OBBB — earlier versions of the legislation would have eliminated it. If BBCE is eliminated in future legislation, the income limit for a family of 4 would drop from $5,200/month to $3,380/month. **FY2027 COLA adjustment**: Benefits update October 1. I’ll post FY2027 amounts here when USDA releases them (typically late summer 2026). Things can shift quickly — [Subscribe or follow us ↗](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates. --- ## Where Can You Use Your Colorado EBT Card? **In stores**: Any USDA-authorized retailer — including Walmart, King Soopers, Safeway, Natural Grocers, ALDI, Sprouts, and most independent grocery stores. Look for the EBT/SNAP sign at checkout. **Online**: Colorado SNAP recipients can shop online through **Amazon Fresh** and **Walmart Grocery** — select SNAP/EBT as your payment method at checkout. Delivery fees are not covered by SNAP (only the groceries themselves). **Farmers markets**: Many Colorado farmers markets accept EBT. Some participate in the Double Up Food Bucks program, which matches SNAP dollars on locally-grown produce. **What SNAP does NOT cover**: Alcohol, tobacco, vitamins/supplements, hot prepared foods, fast food, pet food, household supplies, or hygiene products. ## Other Benefits If You Receive Colorado SNAP SNAP often unlocks access to other programs: - **Medicaid / CHIP**: Receiving SNAP can streamline Medicaid enrollment for adults and children. Apply through [PEAK Colorado Benefits](https://coloradopeak.secure.force.com). - **LIHEAP**: Low Income Home Energy Assistance helps with utility bills. Contact your local community action agency or call 2-1-1. - **WIC**: Nutrition support for pregnant women, new mothers, and children under 5. Separate application through your state health department. - **Summer EBT (SUN Bucks)**: Extra food benefits for school-age children during summer months. Check with your state for 2026 enrollment. - **Free/reduced school meals**: SNAP households automatically qualify. Register through your child’s school district. For a full overview of federal SNAP amounts and recent cuts, see the [2026 SNAP benefits guide](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). See also: [Colorado unemployment benefit amounts and eligibility rules](https://savingtoinvest.com/colorado-co-unemployment-insurance-compensation-and-enhanced-ui-benefits/). --- ## Colorado SNAP: How Benefits Have Changed (2023–2026) PeriodMax Benefit (Family of 4)Key DevelopmentFY2023 (Oct 2022 – Sep 2023)$939/monthPandemic Emergency Allotments ended — biggest single drop since the pandemicFY2024 (Oct 2023 – Sep 2024)$973/month~3.7% COLA increase; first full year post-pandemicFY2025 (Oct 2024 – Sep 2025)$975/monthMinimal ~0.2% increase; OBBB signed into lawFY2026 (Oct 2025 – Sep 2026)$994/month~2% increase; expanded work requirements take effect The end of Emergency Allotments in early 2023 was the biggest disruption in recent memory — some households that had received the maximum saw benefits drop to $23/month. FY2026 numbers are all standard formula, no pandemic additions. Frequently Asked Questions QHow much is SNAP in Colorado in 2026? AThe maximum monthly SNAP benefit in Colorado (CO) for FY2026 is $298 for a single person, $546 for 2 people, $785 for 3 people, $994 for a family of 4, and $1,183 for 5 people. Most households receive less than the maximum based on net income after deductions. QWhen does SNAP deposit to my Colorado EBT card? ABenefits load 1st-10th. Check your approval letter or PEAK Colorado Benefits for your exact deposit date. QWhat are the income limits for Colorado SNAP in 2026? AColorado uses a gross income limit of 200% FPL - approximately $2,510/month for a single person or $5,200/month for a family of four. Net income (after deductions) must be at or below 100% FPL. QHow do I apply for SNAP in Colorado? AApply online at https://coloradopeak.secure.force.com, in person at a local Colorado Department of Human Services (CDHS) office, or by calling 303-866-5700. Processing takes up to 30 days, or 7 days if you qualify for expedited benefits. QWhat can I buy with my Colorado EBT card? ASNAP covers groceries including produce, meat, dairy, bread, cereals, and packaged foods. You can shop in-store at most major grocery chains and online through Amazon Fresh and Walmart Grocery. SNAP does not cover alcohol, tobacco, hot prepared foods, vitamins, or non-food household items. QWhat do I do if my Colorado SNAP application is denied? ARequest a fair hearing within 90 days of your denial notice. Apply online at https://coloradopeak.secure.force.com, in person at a local office, or by calling 303-866-5700. The agency must explain the specific reason for denial - gather documentation addressing that reason before your hearing. QDid SNAP benefits change in 2026? AYes. The One Big Beautiful Bill (OBBB) expanded work requirements to include adults aged 55-64 and parents of children over 14. It cuts federal SNAP funding by $186 billion over 10 years and shifts some benefit costs to states starting in 2028. QCan I use my Colorado EBT card at Walmart or Amazon? AYes to both. Walmart accepts Colorado EBT in-store and online at walmart.com. Amazon Fresh also accepts SNAP/EBT online - select it as your payment method at checkout. Delivery fees are not covered, only eligible food items. **Categories:** Taxes and Retirement --- ### [Pennsylvania SNAP Benefits: 2027 Outlook, Current 2026 Amounts Up to $994/Month](https://savingtoinvest.com/pennsylvania-pa-snap-program/) **Published:** January 5, 2023 **Author:** Andy **Content:** ### Key Takeaways - FY2026 max SNAP benefit: $298/month for 1 person, $994/month for a family of 4 - Benefits load on your Pennsylvania ACCESS Card (EBT) 3rd–14th - The OBBB expanded work requirements to adults 55–64 and parents of teens — if you were exempt before, check whether you still are - Pennsylvania uses BBCE at 200% FPL — more households qualify than in standard states - Apply or recertify at COMPASS Pennsylvania Benefits or call 1-800-692-7462 A family of four on SNAP in Pennsylvania can get up to $994 a month in fiscal year 2026 — up from $975 last year — deposited onto the Pennsylvania ACCESS Card (EBT) 3rd–14th. The open question now is what USDA sets for FY2027, expected in late summer. But 2026 is a more complicated year than most for SNAP. The One Big Beautiful Bill (OBBB) made some of the biggest cuts to the program in its history — and some Pennsylvania residents who qualified last year may not qualify now. Here’s what changed, what you can expect to receive, and what to do if you’re denied. Covered in this Article: [Toggle](#) - [2026 SNAP Benefit Amounts in Pennsylvania](#2026_SNAP_Benefit_Amounts_in_Pennsylvania) - [How Much Would a Family of 4 Actually Receive in Pennsylvania?](#How_Much_Would_a_Family_of_4_Actually_Receive_in_Pennsylvania) - [When Does SNAP Deposit to Your Pennsylvania EBT Card?](#When_Does_SNAP_Deposit_to_Your_Pennsylvania_EBT_Card) - [What’s Changed in 2026: OBBB Work Requirements](#Whats_Changed_in_2026_OBBB_Work_Requirements) - [How to Qualify for Pennsylvania SNAP in 2026](#How_to_Qualify_for_Pennsylvania_SNAP_in_2026) - [How to Apply](#How_to_Apply) - [What to Do If Your Pennsylvania SNAP Application Is Denied](#What_to_Do_If_Your_Pennsylvania_SNAP_Application_Is_Denied) - [What to Watch: Potential SNAP Changes Ahead](#What_to_Watch_Potential_SNAP_Changes_Ahead) - [Where Can You Use Your Pennsylvania EBT Card?](#Where_Can_You_Use_Your_Pennsylvania_EBT_Card) - [Other Benefits If You Receive Pennsylvania SNAP](#Other_Benefits_If_You_Receive_Pennsylvania_SNAP) - [Pennsylvania SNAP: How Benefits Have Changed (2023–2026)](#Pennsylvania_SNAP_How_Benefits_Have_Changed_2023%E2%80%932026) ## 2026 SNAP Benefit Amounts in Pennsylvania Pennsylvania uses the standard federal SNAP benefit schedule. Maximum monthly allotments for FY2026 (October 1, 2025 – September 30, 2026): Household SizeMax Monthly BenefitGross Income Limit (200% FPL)Net Income Limit (100% FPL)1 person$298$2,510/mo$1,255/mo2 people$546$3,406/mo$1,703/mo3 people$785$4,304/mo$2,152/mo4 people$994$5,200/mo$2,600/mo5 people$1,183$6,098/mo$3,049/mo6 people$1,421$6,994/mo$3,497/mo7 people$1,571$7,890/mo$3,945/mo8+ people$1,791+—— **Pennsylvania (PA) uses BBCE at 200% FPL** — significantly more generous than the 130% federal floor. A family of four can qualify with gross income up to **$5,200/month**, compared to just $3,380/month in the most restrictive states. Most households receive less than the maximum. Your actual benefit depends on net income after deductions (rent, utilities, child care, medical expenses for elderly or disabled members). ### How Much Would a Family of 4 Actually Receive in Pennsylvania? Here are two realistic examples to show the range: **Scenario A — Lower-income family** A family of 4 with gross monthly income of **$1,500** (one parent working part-time): - Gross income: $1,500 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$300 - Net income: $983 - 30% of net income: $295 - **Monthly SNAP benefit: $994 − $295 = $699** **Scenario B — Working family (moderate income)** A family of 4 with gross monthly income of **$3,200**: - Gross income: $3,200 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$640 - Net income: $2,343 - 30% of net income: $703 - **Monthly SNAP benefit: $994 − $703 = $291** The 20% earned income deduction rewards working households. Additional deductions for excess shelter costs, child care, or medical expenses (elderly/disabled) can increase your benefit further. ## When Does SNAP Deposit to Your Pennsylvania EBT Card? Pennsylvania (PA) distributes SNAP benefits based on the **last digit of your case number**. Benefits load between the 3rd–14th each month: Case # Last DigitDeposit Date13rd24th35th47th58th69th710th812th913th014th Your case number is on your approval letter or available through [COMPASS Pennsylvania Benefits](https://www.compass.state.pa.us). Call **1-800-692-7462** if you’re unsure of your deposit date — it stays the same each month once you’re approved. TANF cash benefits (if applicable) follow a separate deposit schedule. ## What’s Changed in 2026: OBBB Work Requirements The OBBB made several significant changes that took effect in late 2025 and early 2026: **Expanded work requirements**: Adults aged **55–64** who are able to work are now subject to SNAP work requirements for the first time. Previously the cutoff was 49. Parents whose youngest child is **over 14** are also now subject to work rules. **20 hours per week or 80 hours per month** — that’s the threshold for Able-Bodied Adults Without Dependents (ABAWDs) aged 18–64. Work, job training, or approved volunteer activity all count. Fail to meet the requirement and benefits are limited to **3 months in any 36-month period**. **State cost-sharing starting in 2028**: States will begin paying a share of benefit costs based on their SNAP payment error rate. This is new territory for all state budgets. **$186 billion in total federal SNAP cuts** over the next decade. If you were receiving SNAP in 2024 and haven’t recertified recently, check your current eligibility — the rules have shifted. ## How to Qualify for Pennsylvania SNAP in 2026 **Income**: Gross income must be at or below 200% FPL (see table above). Net income (after deductions) must be at or below 100% FPL. **Residency**: Must be a Pennsylvania resident. **Citizenship**: U.S. citizens and certain lawfully present immigrants qualify. Undocumented individuals are not eligible for federal SNAP benefits. **Work requirements**: Most able-bodied adults 18–64 must register for work and accept suitable employment. ABAWDs must meet the 80-hour/month work, training, or volunteer threshold. New in 2026: adults 55–64 are now included. ## How to Apply - **Online**: [COMPASS Pennsylvania Benefits](https://www.compass.state.pa.us) — fastest option, available 24/7 - **In person**: Any local Pennsylvania Department of Human Services office - **Phone**: 1-800-692-7462 Pennsylvania has up to **30 days** to process your application — or **7 days** if you qualify for expedited SNAP (very low income or resources). Benefits are backdated to your application date. Things can shift quickly. I’ll update this page when anything changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What to Do If Your Pennsylvania SNAP Application Is Denied Denials are common and often appealable. The most frequent reasons are income slightly over the stated limit, missing documentation, and work requirement issues — all of which can be addressed. **Step 1**: Read your denial notice carefully. Pennsylvania is required to explain the specific reason in writing. **Step 2**: Gather documentation that addresses the reason — recent pay stubs, rent receipts, proof of work activities, or a letter from your employer if hours changed. **Step 3**: Request a fair hearing within **90 days** of your denial. You can request one online at [COMPASS Pennsylvania Benefits](https://www.compass.state.pa.us), in person at your local Pennsylvania Department of Human Services office, or by calling **1-800-692-7462**. **Step 4**: While your appeal is pending, you can continue receiving benefits if you were previously approved — request continued benefits when you file your hearing request. --- ## What to Watch: Potential SNAP Changes Ahead **State cost-sharing (FY2027–2028)**: Starting in FY2027, Pennsylvania will begin paying a share of SNAP benefit costs — a first for all states. The percentage depends on Pennsylvania’s payment error rate. If cost pressure builds, expect tighter eligibility administration at the state level. **Work requirement enforcement**: Federal guidance on the expanded age 55–64 rules is still evolving. States are implementing these in phases — if you’re in the newly covered age range, check with your caseworker. **BBCE at risk**: Pennsylvania’s 200% FPL income limit narrowly survived the OBBB — earlier versions of the legislation would have eliminated it. If BBCE is eliminated in future legislation, the income limit for a family of 4 would drop from $5,200/month to $3,380/month. **FY2027 COLA adjustment**: Benefits update October 1. I’ll post FY2027 amounts here when USDA releases them (typically late summer 2026). Things can shift quickly — [Subscribe or follow us ↗](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates. --- ## Where Can You Use Your Pennsylvania EBT Card? **In stores**: Any USDA-authorized retailer — including Walmart, Giant Food Stores, Weis Markets, Aldi, ShopRite, Price Rite, and most independent grocery stores. Look for the EBT/SNAP sign at checkout. **Online**: Pennsylvania SNAP recipients can shop online through **Amazon Fresh** and **Walmart Grocery** — select SNAP/EBT as your payment method at checkout. Delivery fees are not covered by SNAP (only the groceries themselves). **Farmers markets**: Many Pennsylvania farmers markets accept EBT. Some participate in the Double Up Food Bucks program, which matches SNAP dollars on locally-grown produce. **What SNAP does NOT cover**: Alcohol, tobacco, vitamins/supplements, hot prepared foods, fast food, pet food, household supplies, or hygiene products. ## Other Benefits If You Receive Pennsylvania SNAP SNAP often unlocks access to other programs: - **Medicaid / CHIP**: Receiving SNAP can streamline Medicaid enrollment for adults and children. Apply through [COMPASS Pennsylvania Benefits](https://www.compass.state.pa.us). - **LIHEAP**: Low Income Home Energy Assistance helps with utility bills. Contact your local community action agency or call 2-1-1. - **WIC**: Nutrition support for pregnant women, new mothers, and children under 5. Separate application through your state health department. - **Summer EBT (SUN Bucks)**: Extra food benefits for school-age children during summer months. Check with your state for 2026 enrollment. - **Free/reduced school meals**: SNAP households automatically qualify. Register through your child’s school district. For a full overview of federal SNAP amounts and recent cuts, see the [2026 SNAP benefits guide](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). See also: [Pennsylvania unemployment benefit amounts and eligibility rules](https://savingtoinvest.com/pennsylvania-unemployment-benefits/). --- ## Pennsylvania SNAP: How Benefits Have Changed (2023–2026) PeriodMax Benefit (Family of 4)Key DevelopmentFY2023 (Oct 2022 – Sep 2023)$939/monthPandemic Emergency Allotments ended — biggest single drop since the pandemicFY2024 (Oct 2023 – Sep 2024)$973/month~3.7% COLA increase; first full year post-pandemicFY2025 (Oct 2024 – Sep 2025)$975/monthMinimal ~0.2% increase; OBBB signed into lawFY2026 (Oct 2025 – Sep 2026)$994/month~2% increase; expanded work requirements take effect The end of Emergency Allotments in early 2023 was the biggest disruption in recent memory — some households that had received the maximum saw benefits drop to $23/month. FY2026 numbers are all standard formula, no pandemic additions. Frequently Asked Questions QHow much is SNAP in Pennsylvania in 2026? AThe maximum monthly SNAP benefit in Pennsylvania (PA) for FY2026 is $298 for a single person, $546 for 2 people, $785 for 3 people, $994 for a family of 4, and $1,183 for 5 people. Most households receive less than the maximum based on net income after deductions. QWhen does SNAP deposit to my Pennsylvania EBT card? ABenefits load 3rd–14th. Check your approval letter or COMPASS Pennsylvania Benefits for your exact deposit date. QWhat are the income limits for Pennsylvania SNAP in 2026? APennsylvania uses a gross income limit of 200% FPL — approximately $2,510/month for a single person or $5,200/month for a family of four. Net income (after deductions) must be at or below 100% FPL. QHow do I apply for SNAP in Pennsylvania? AApply online at https://www.compass.state.pa.us, in person at a local Pennsylvania Department of Human Services (DHS) office, or by calling 1-800-692-7462. Processing takes up to 30 days, or 7 days if you qualify for expedited benefits. QWhat can I buy with my Pennsylvania EBT card? ASNAP covers groceries including produce, meat, dairy, bread, cereals, and packaged foods. You can shop in-store at most major grocery chains and online through Amazon Fresh and Walmart Grocery. SNAP does not cover alcohol, tobacco, hot prepared foods, vitamins, or non-food household items. QWhat do I do if my Pennsylvania SNAP application is denied? ARequest a fair hearing within 90 days of your denial notice. Apply online at https://www.compass.state.pa.us, in person at a local office, or by calling 1-800-692-7462. The agency must explain the specific reason for denial — gather documentation addressing that reason before your hearing. QDid SNAP benefits change in 2026? AYes. The One Big Beautiful Bill (OBBB) expanded work requirements to include adults aged 55–64 and parents of children over 14. It cuts federal SNAP funding by $186 billion over 10 years and shifts some benefit costs to states starting in 2028. QCan I use my Pennsylvania EBT card at Walmart or Amazon? AYes to both. Walmart accepts Pennsylvania EBT in-store and online at walmart.com. Amazon Fresh also accepts SNAP/EBT online — select it as your payment method at checkout. Delivery fees are not covered, only eligible food items. **Categories:** Government Rebates and Payments --- ### [Oregon SNAP Benefits: 2027 Outlook, Current 2026 Amounts Up to $994/Month](https://savingtoinvest.com/oregon-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) **Published:** June 22, 2026 **Author:** Andy **Content:** ### Key Takeaways - FY2026 max SNAP benefit: $298/month for 1 person, $994/month for a family of 4 - Benefits load on your Oregon Trail Card (EBT) 1st–9th - The OBBB expanded work requirements to adults 55–64 and parents of teens — if you were exempt before, check whether you still are - Oregon uses BBCE at 200% FPL — more households qualify than in standard states - Apply or recertify at ONE Oregon Benefits Portal or call 1-800-699-9075 Oregon’s SNAP benefits load onto your Oregon Trail Card (EBT) 1st–9th. The maximum for a family of four is $994 a month in fiscal year 2026, up from $975 last year. The open question now is what USDA sets for FY2027, expected in late summer. But 2026 is a more complicated year than most for SNAP. The One Big Beautiful Bill (OBBB) made some of the biggest cuts to the program in its history — and some Oregon residents who qualified last year may not qualify now. Here’s what changed, what you can expect to receive, and what to do if you’re denied. Covered in this Article: [Toggle](#) - [2026 SNAP Benefit Amounts in Oregon](#2026_SNAP_Benefit_Amounts_in_Oregon) - [When Does SNAP Deposit to Your Oregon EBT Card?](#When_Does_SNAP_Deposit_to_Your_Oregon_EBT_Card) - [What’s Changed in 2026: OBBB Work Requirements](#Whats_Changed_in_2026_OBBB_Work_Requirements) - [How to Qualify for Oregon SNAP in 2026](#How_to_Qualify_for_Oregon_SNAP_in_2026) - [How to Apply](#How_to_Apply) - [What to Do If Your Oregon SNAP Application Is Denied](#What_to_Do_If_Your_Oregon_SNAP_Application_Is_Denied) - [What to Watch: Potential SNAP Changes Ahead](#What_to_Watch_Potential_SNAP_Changes_Ahead) - [Where Can You Use Your Oregon EBT Card?](#Where_Can_You_Use_Your_Oregon_EBT_Card) - [Other Benefits If You Receive Oregon SNAP](#Other_Benefits_If_You_Receive_Oregon_SNAP) - [Oregon SNAP: How Benefits Have Changed (2023–2026)](#Oregon_SNAP_How_Benefits_Have_Changed_2023%E2%80%932026) ## 2026 SNAP Benefit Amounts in Oregon Oregon uses the standard federal SNAP benefit schedule. Maximum monthly allotments for FY2026 (October 1, 2025 – September 30, 2026): Household SizeMax Monthly BenefitGross Income Limit (200% FPL)Net Income Limit (100% FPL)1 person$298$2,510/mo$1,255/mo2 people$546$3,406/mo$1,703/mo3 people$785$4,304/mo$2,152/mo4 people$994$5,200/mo$2,600/mo5 people$1,183$6,098/mo$3,049/mo6 people$1,421$6,994/mo$3,497/mo7 people$1,571$7,890/mo$3,945/mo8+ people$1,791+—— **Oregon (OR) uses BBCE at 200% FPL** — significantly more generous than the 130% federal floor. A family of four can qualify with gross income up to **$5,200/month**, compared to just $3,380/month in the most restrictive states. Most households receive less than the maximum. Your actual benefit depends on net income after deductions (rent, utilities, child care, medical expenses for elderly or disabled members). ### How Much Would a Family of 4 Actually Receive in Oregon? Here are two realistic examples to show the range: **Scenario A — Lower-income family** A family of 4 with gross monthly income of **$1,500** (one parent working part-time): - Gross income: $1,500 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$300 - Net income: $983 - 30% of net income: $295 - **Monthly SNAP benefit: $994 − $295 = $699** **Scenario B — Working family (moderate income)** A family of 4 with gross monthly income of **$3,200**: - Gross income: $3,200 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$640 - Net income: $2,343 - 30% of net income: $703 - **Monthly SNAP benefit: $994 − $703 = $291** The 20% earned income deduction rewards working households. Additional deductions for excess shelter costs, child care, or medical expenses (elderly/disabled) can increase your benefit further. ## When Does SNAP Deposit to Your Oregon EBT Card? Oregon (OR) distributes SNAP benefits based on the **last digit of your case number**. Benefits load between the 1st–9th each month: Case # Last DigitDeposit Date11st22nd33rd44th55th65th76th87th98th09th Your case number is on your approval letter or available through [ONE Oregon Benefits Portal](https://benefits.oregon.gov). Call **1-800-699-9075** if you’re unsure of your deposit date — it stays the same each month once you’re approved. TANF cash benefits (if applicable) follow a separate deposit schedule. ## What’s Changed in 2026: OBBB Work Requirements The OBBB made several significant changes that took effect in late 2025 and early 2026: **Expanded work requirements**: Adults aged **55–64** who are able to work are now subject to SNAP work requirements for the first time. Previously the cutoff was 49. Parents whose youngest child is **over 14** are also now subject to work rules. **20 hours per week or 80 hours per month** — that’s the threshold for Able-Bodied Adults Without Dependents (ABAWDs) aged 18–64. Work, job training, or approved volunteer activity all count. Fail to meet the requirement and benefits are limited to **3 months in any 36-month period**. **State cost-sharing starting in 2028**: States will begin paying a share of benefit costs based on their SNAP payment error rate. This is new territory for all state budgets. **$186 billion in total federal SNAP cuts** over the next decade. If you were receiving SNAP in 2024 and haven’t recertified recently, check your current eligibility — the rules have shifted. ## How to Qualify for Oregon SNAP in 2026 **Income**: Gross income must be at or below 200% FPL (see table above). Net income (after deductions) must be at or below 100% FPL. **Residency**: Must be a Oregon resident. **Citizenship**: U.S. citizens and certain lawfully present immigrants qualify. Undocumented individuals are not eligible for federal SNAP benefits. **Work requirements**: Most able-bodied adults 18–64 must register for work and accept suitable employment. ABAWDs must meet the 80-hour/month work, training, or volunteer threshold. New in 2026: adults 55–64 are now included. ## How to Apply - **Online**: [ONE Oregon Benefits Portal](https://benefits.oregon.gov) — fastest option, available 24/7 - **In person**: Any local Oregon Department of Human Services office - **Phone**: 1-800-699-9075 Oregon has up to **30 days** to process your application — or **7 days** if you qualify for expedited SNAP (very low income or resources). Benefits are backdated to your application date. Things can shift quickly. I’ll update this page when anything changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What to Do If Your Oregon SNAP Application Is Denied Denials are common and often appealable. The most frequent reasons are income slightly over the stated limit, missing documentation, and work requirement issues — all of which can be addressed. **Step 1**: Read your denial notice carefully. Oregon is required to explain the specific reason in writing. **Step 2**: Gather documentation that addresses the reason — recent pay stubs, rent receipts, proof of work activities, or a letter from your employer if hours changed. **Step 3**: Request a fair hearing within **90 days** of your denial. You can request one online at [ONE Oregon Benefits Portal](https://benefits.oregon.gov), in person at your local Oregon Department of Human Services office, or by calling **1-800-699-9075**. **Step 4**: While your appeal is pending, you can continue receiving benefits if you were previously approved — request continued benefits when you file your hearing request. --- ## What to Watch: Potential SNAP Changes Ahead **State cost-sharing (FY2027–2028)**: Starting in FY2027, Oregon will begin paying a share of SNAP benefit costs — a first for all states. The percentage depends on Oregon’s payment error rate. If cost pressure builds, expect tighter eligibility administration at the state level. **Work requirement enforcement**: Federal guidance on the expanded age 55–64 rules is still evolving. States are implementing these in phases — if you’re in the newly covered age range, check with your caseworker. **BBCE at risk**: Oregon’s 200% FPL income limit narrowly survived the OBBB — earlier versions of the legislation would have eliminated it. If BBCE is eliminated in future legislation, the income limit for a family of 4 would drop from $5,200/month to $3,380/month. **FY2027 COLA adjustment**: Benefits update October 1. I’ll post FY2027 amounts here when USDA releases them (typically late summer 2026). Things can shift quickly — [Subscribe or follow us ↗](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates. --- ## Where Can You Use Your Oregon EBT Card? **In stores**: Any USDA-authorized retailer — including Walmart, Fred Meyer, Safeway, WinCo Foods, Grocery Outlet, New Seasons, and most independent grocery stores. Look for the EBT/SNAP sign at checkout. **Online**: Oregon SNAP recipients can shop online through **Amazon Fresh** and **Walmart Grocery** — select SNAP/EBT as your payment method at checkout. Delivery fees are not covered by SNAP (only the groceries themselves). **Farmers markets**: Many Oregon farmers markets accept EBT. Some participate in the Double Up Food Bucks program, which matches SNAP dollars on locally-grown produce. **What SNAP does NOT cover**: Alcohol, tobacco, vitamins/supplements, hot prepared foods, fast food, pet food, household supplies, or hygiene products. Oregon’s EBT card is called the **Oregon Trail Card** — named after the historic trail. It works at any USDA-authorized retailer just like any other EBT card. ## Other Benefits If You Receive Oregon SNAP SNAP often unlocks access to other programs: - **Medicaid / CHIP**: Receiving SNAP can streamline Medicaid enrollment for adults and children. Apply through [ONE Oregon Benefits Portal](https://benefits.oregon.gov). - **LIHEAP**: Low Income Home Energy Assistance helps with utility bills. Contact your local community action agency or call 2-1-1. - **WIC**: Nutrition support for pregnant women, new mothers, and children under 5. Separate application through your state health department. - **Summer EBT (SUN Bucks)**: Extra food benefits for school-age children during summer months. Check with your state for 2026 enrollment. - **Free/reduced school meals**: SNAP households automatically qualify. Register through your child’s school district. For a full overview of federal SNAP amounts and recent cuts, see the [2026 SNAP benefits guide](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). See also: [Oregon unemployment benefit amounts and eligibility rules](https://savingtoinvest.com/oregon-unemployment-benefits/). --- ## Oregon SNAP: How Benefits Have Changed (2023–2026) PeriodMax Benefit (Family of 4)Key DevelopmentFY2023 (Oct 2022 – Sep 2023)$939/monthPandemic Emergency Allotments ended — biggest single drop since the pandemicFY2024 (Oct 2023 – Sep 2024)$973/month~3.7% COLA increase; first full year post-pandemicFY2025 (Oct 2024 – Sep 2025)$975/monthMinimal ~0.2% increase; OBBB signed into lawFY2026 (Oct 2025 – Sep 2026)$994/month~2% increase; expanded work requirements take effect The end of Emergency Allotments in early 2023 was the biggest disruption in recent memory — some households that had received the maximum saw benefits drop to $23/month. FY2026 numbers are all standard formula, no pandemic additions. Frequently Asked Questions QHow much is SNAP in Oregon in 2026? AThe maximum monthly SNAP benefit in Oregon (OR) for FY2026 is $298 for a single person, $546 for 2 people, $785 for 3 people, $994 for a family of 4, and $1,183 for 5 people. Most households receive less than the maximum based on net income after deductions. QWhen does SNAP deposit to my Oregon EBT card? ABenefits load 1st–9th. Check your approval letter or ONE Oregon Benefits Portal for your exact deposit date. QWhat are the income limits for Oregon SNAP in 2026? AOregon uses a gross income limit of 200% FPL — approximately $2,510/month for a single person or $5,200/month for a family of four. Net income (after deductions) must be at or below 100% FPL. QHow do I apply for SNAP in Oregon? AApply online at https://benefits.oregon.gov, in person at a local Oregon Department of Human Services (DHS) office, or by calling 1-800-699-9075. Processing takes up to 30 days, or 7 days if you qualify for expedited benefits. QWhat can I buy with my Oregon EBT card? ASNAP covers groceries including produce, meat, dairy, bread, cereals, and packaged foods. You can shop in-store at most major grocery chains and online through Amazon Fresh and Walmart Grocery. SNAP does not cover alcohol, tobacco, hot prepared foods, vitamins, or non-food household items. QWhat do I do if my Oregon SNAP application is denied? ARequest a fair hearing within 90 days of your denial notice. Apply online at https://benefits.oregon.gov, in person at a local office, or by calling 1-800-699-9075. The agency must explain the specific reason for denial — gather documentation addressing that reason before your hearing. QDid SNAP benefits change in 2026? AYes. The One Big Beautiful Bill (OBBB) expanded work requirements to include adults aged 55–64 and parents of children over 14. It cuts federal SNAP funding by $186 billion over 10 years and shifts some benefit costs to states starting in 2028. QCan I use my Oregon EBT card at Walmart or Amazon? AYes to both. Walmart accepts Oregon EBT in-store and online at walmart.com. Amazon Fresh also accepts SNAP/EBT online — select it as your payment method at checkout. Delivery fees are not covered, only eligible food items. **Categories:** Taxes and Retirement --- ### [Oklahoma SNAP Benefits: 2027 Outlook, Current 2026 Amounts Up to $994/Month](https://savingtoinvest.com/oklahoma-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) **Published:** June 22, 2026 **Author:** Andy **Content:** ### Key Takeaways - FY2026 max SNAP benefit: $298/month for 1 person, $994/month for a family of 4 - Benefits load on your Access Oklahoma EBT Card 1st–10th - The OBBB expanded work requirements to adults 55–64 and parents of teens — if you were exempt before, check whether you still are - Oklahoma uses the federal 130% FPL income limit — the minimum floor, no expansion - Apply or recertify at OKDHSLive Benefits Portal or call 1-405-522-5050 or 2-1-1 OKDHSLive Benefits Portal handles SNAP applications and recertifications in Oklahoma, with benefits loading onto the Access Oklahoma EBT Card 1st–10th. Fiscal year 2026’s maximum for a family of four is $994 a month, up $19 from last year’s $975. The open question now is what USDA sets for FY2027, expected in late summer. But 2026 is a more complicated year than most for SNAP. The One Big Beautiful Bill (OBBB) made some of the biggest cuts to the program in its history — and some Oklahoma residents who qualified last year may not qualify now. Here’s what changed, what you can expect to receive, and what to do if you’re denied. Covered in this Article: [Toggle](#) - [2026 SNAP Benefit Amounts in Oklahoma](#2026_SNAP_Benefit_Amounts_in_Oklahoma) - [When Does SNAP Deposit to Your Oklahoma EBT Card?](#When_Does_SNAP_Deposit_to_Your_Oklahoma_EBT_Card) - [What’s Changed in 2026: OBBB Work Requirements](#Whats_Changed_in_2026_OBBB_Work_Requirements) - [How to Qualify for Oklahoma SNAP in 2026](#How_to_Qualify_for_Oklahoma_SNAP_in_2026) - [How to Apply](#How_to_Apply) - [What to Do If Your Oklahoma SNAP Application Is Denied](#What_to_Do_If_Your_Oklahoma_SNAP_Application_Is_Denied) - [What to Watch: Potential SNAP Changes Ahead](#What_to_Watch_Potential_SNAP_Changes_Ahead) - [Where Can You Use Your Oklahoma EBT Card?](#Where_Can_You_Use_Your_Oklahoma_EBT_Card) - [Other Benefits If You Receive Oklahoma SNAP](#Other_Benefits_If_You_Receive_Oklahoma_SNAP) - [Oklahoma SNAP: How Benefits Have Changed (2023–2026)](#Oklahoma_SNAP_How_Benefits_Have_Changed_2023%E2%80%932026) ## 2026 SNAP Benefit Amounts in Oklahoma Oklahoma uses the standard federal SNAP benefit schedule. Maximum monthly allotments for FY2026 (October 1, 2025 – September 30, 2026): Household SizeMax Monthly BenefitGross Income Limit (130% FPL)Net Income Limit (100% FPL)1 person$298$1,632/mo$1,255/mo2 people$546$2,214/mo$1,703/mo3 people$785$2,798/mo$2,152/mo4 people$994$3,380/mo$2,600/mo5 people$1,183$3,964/mo$3,049/mo6 people$1,421$4,546/mo$3,497/mo7 people$1,571$5,128/mo$3,945/mo8+ people$1,791+—— **Oklahoma (OK) uses the federal 130% FPL income standard** — the minimum floor, no expansion. A family of four must have gross income at or below **$3,380/month** to qualify. This is one of the stricter limits nationally. Most households receive less than the maximum. Your actual benefit depends on net income after deductions (rent, utilities, child care, medical expenses for elderly or disabled members). ### How Much Would a Family of 4 Actually Receive in Oklahoma? Here are two realistic examples to show the range: **Scenario A — Lower-income family** A family of 4 with gross monthly income of **$1,500** (one parent working part-time): - Gross income: $1,500 ✓ (within $3,380/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$300 - Net income: $983 - 30% of net income: $295 - **Monthly SNAP benefit: $994 − $295 = $699** **Scenario B — Working family (moderate income)** A family of 4 with gross monthly income of **$2,000**: - Gross income: $2,000 ✓ (within $3,380/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$400 - Net income: $1,383 - 30% of net income: $415 - **Monthly SNAP benefit: $994 − $415 = $579** The 20% earned income deduction rewards working households. Additional deductions for excess shelter costs, child care, or medical expenses (elderly/disabled) can increase your benefit further. ## When Does SNAP Deposit to Your Oklahoma EBT Card? Oklahoma (OK) distributes SNAP benefits based on the **first letter of your last name**. Benefits load between the 1st–10th: Last Name Starts WithDeposit DateA–E1stF–J3rdK–N6thO–T8thU–Z10th Your case number is on your approval letter or available through [OKDHSLive Benefits Portal](https://okdhslive.org). Call **1-405-522-5050 or 2-1-1** if you’re unsure of your deposit date — it stays the same each month once you’re approved. TANF cash benefits (if applicable) follow a separate deposit schedule. ## What’s Changed in 2026: OBBB Work Requirements The OBBB made several significant changes that took effect in late 2025 and early 2026: **Expanded work requirements**: Adults aged **55–64** who are able to work are now subject to SNAP work requirements for the first time. Previously the cutoff was 49. Parents whose youngest child is **over 14** are also now subject to work rules. **20 hours per week or 80 hours per month** — that’s the threshold for Able-Bodied Adults Without Dependents (ABAWDs) aged 18–64. Work, job training, or approved volunteer activity all count. Fail to meet the requirement and benefits are limited to **3 months in any 36-month period**. **State cost-sharing starting in 2028**: States will begin paying a share of benefit costs based on their SNAP payment error rate. This is new territory for all state budgets. **$186 billion in total federal SNAP cuts** over the next decade. If you were receiving SNAP in 2024 and haven’t recertified recently, check your current eligibility — the rules have shifted. ## How to Qualify for Oklahoma SNAP in 2026 **Income**: Gross income must be at or below 130% FPL (see table above). Net income (after deductions) must be at or below 100% FPL. **Residency**: Must be a Oklahoma resident. **Citizenship**: U.S. citizens and certain lawfully present immigrants qualify. Undocumented individuals are not eligible for federal SNAP benefits. **Work requirements**: Most able-bodied adults 18–64 must register for work and accept suitable employment. ABAWDs must meet the 80-hour/month work, training, or volunteer threshold. New in 2026: adults 55–64 are now included. ## How to Apply - **Online**: [OKDHSLive Benefits Portal](https://okdhslive.org) — fastest option, available 24/7 - **In person**: Any local Oklahoma Department of Human Services office - **Phone**: 1-405-522-5050 or 2-1-1 Oklahoma has up to **30 days** to process your application — or **7 days** if you qualify for expedited SNAP (very low income or resources). Benefits are backdated to your application date. Things can shift quickly. I’ll update this page when anything changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What to Do If Your Oklahoma SNAP Application Is Denied Denials are common and often appealable. The most frequent reasons are income slightly over the stated limit, missing documentation, and work requirement issues — all of which can be addressed. **Step 1**: Read your denial notice carefully. Oklahoma is required to explain the specific reason in writing. **Step 2**: Gather documentation that addresses the reason — recent pay stubs, rent receipts, proof of work activities, or a letter from your employer if hours changed. **Step 3**: Request a fair hearing within **90 days** of your denial. You can request one online at [OKDHSLive Benefits Portal](https://okdhslive.org), in person at your local Oklahoma Department of Human Services office, or by calling **1-405-522-5050 or 2-1-1**. **Step 4**: While your appeal is pending, you can continue receiving benefits if you were previously approved — request continued benefits when you file your hearing request. --- ## What to Watch: Potential SNAP Changes Ahead **State cost-sharing (FY2027–2028)**: Starting in FY2027, Oklahoma will begin paying a share of SNAP benefit costs — a first for all states. The percentage depends on Oklahoma’s payment error rate. If cost pressure builds, expect tighter eligibility administration at the state level. **Work requirement enforcement**: Federal guidance on the expanded age 55–64 rules is still evolving. States are implementing these in phases — if you’re in the newly covered age range, check with your caseworker. **FY2027 COLA adjustment**: Benefits update October 1. I’ll post FY2027 amounts here when USDA releases them (typically late summer 2026). Things can shift quickly — [Subscribe or follow us ↗](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates. --- ## Where Can You Use Your Oklahoma EBT Card? **In stores**: Any USDA-authorized retailer — including Walmart, Homeland, Crest Foods, Reasor’s, ALDI, Braum’s (select items), and most independent grocery stores. Look for the EBT/SNAP sign at checkout. **Online**: Oklahoma SNAP recipients can shop online through **Amazon Fresh** and **Walmart Grocery** — select SNAP/EBT as your payment method at checkout. Delivery fees are not covered by SNAP (only the groceries themselves). **Farmers markets**: Many Oklahoma farmers markets accept EBT. Some participate in the Double Up Food Bucks program, which matches SNAP dollars on locally-grown produce. **What SNAP does NOT cover**: Alcohol, tobacco, vitamins/supplements, hot prepared foods, fast food, pet food, household supplies, or hygiene products. ## Other Benefits If You Receive Oklahoma SNAP SNAP often unlocks access to other programs: - **Medicaid / CHIP**: Receiving SNAP can streamline Medicaid enrollment for adults and children. Apply through [OKDHSLive Benefits Portal](https://okdhslive.org). - **LIHEAP**: Low Income Home Energy Assistance helps with utility bills. Contact your local community action agency or call 2-1-1. - **WIC**: Nutrition support for pregnant women, new mothers, and children under 5. Separate application through your state health department. - **Summer EBT (SUN Bucks)**: Extra food benefits for school-age children during summer months. Check with your state for 2026 enrollment. - **Free/reduced school meals**: SNAP households automatically qualify. Register through your child’s school district. For a full overview of federal SNAP amounts and recent cuts, see the [2026 SNAP benefits guide](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). See also: [Oklahoma unemployment benefit amounts and eligibility rules](https://savingtoinvest.com/oklahoma-unemployment-benefits/). --- ## Oklahoma SNAP: How Benefits Have Changed (2023–2026) PeriodMax Benefit (Family of 4)Key DevelopmentFY2023 (Oct 2022 – Sep 2023)$939/monthPandemic Emergency Allotments ended — biggest single drop since the pandemicFY2024 (Oct 2023 – Sep 2024)$973/month~3.7% COLA increase; first full year post-pandemicFY2025 (Oct 2024 – Sep 2025)$975/monthMinimal ~0.2% increase; OBBB signed into lawFY2026 (Oct 2025 – Sep 2026)$994/month~2% increase; expanded work requirements take effect The end of Emergency Allotments in early 2023 was the biggest disruption in recent memory — some households that had received the maximum saw benefits drop to $23/month. FY2026 numbers are all standard formula, no pandemic additions. Frequently Asked Questions QHow much is SNAP in Oklahoma in 2026? AThe maximum monthly SNAP benefit in Oklahoma (OK) for FY2026 is $298 for a single person, $546 for 2 people, $785 for 3 people, $994 for a family of 4, and $1,183 for 5 people. Most households receive less than the maximum based on net income after deductions. QWhen does SNAP deposit to my Oklahoma EBT card? ABenefits load 1st–10th. Check your approval letter or OKDHSLive Benefits Portal for your exact deposit date. QWhat are the income limits for Oklahoma SNAP in 2026? AOklahoma uses a gross income limit of 130% FPL — approximately $1,632/month for a single person or $3,380/month for a family of four. Net income (after deductions) must be at or below 100% FPL. QHow do I apply for SNAP in Oklahoma? AApply online at https://okdhslive.org, in person at a local Oklahoma Department of Human Services (OKDHS) office, or by calling 1-405-522-5050 or 2-1-1. Processing takes up to 30 days, or 7 days if you qualify for expedited benefits. QWhat can I buy with my Oklahoma EBT card? ASNAP covers groceries including produce, meat, dairy, bread, cereals, and packaged foods. You can shop in-store at most major grocery chains and online through Amazon Fresh and Walmart Grocery. SNAP does not cover alcohol, tobacco, hot prepared foods, vitamins, or non-food household items. QWhat do I do if my Oklahoma SNAP application is denied? ARequest a fair hearing within 90 days of your denial notice. Apply online at https://okdhslive.org, in person at a local office, or by calling 1-405-522-5050 or 2-1-1. The agency must explain the specific reason for denial — gather documentation addressing that reason before your hearing. QDid SNAP benefits change in 2026? AYes. The One Big Beautiful Bill (OBBB) expanded work requirements to include adults aged 55–64 and parents of children over 14. It cuts federal SNAP funding by $186 billion over 10 years and shifts some benefit costs to states starting in 2028. QCan I use my Oklahoma EBT card at Walmart or Amazon? AYes to both. Walmart accepts Oklahoma EBT in-store and online at walmart.com. Amazon Fresh also accepts SNAP/EBT online — select it as your payment method at checkout. Delivery fees are not covered, only eligible food items. **Categories:** Taxes and Retirement --- ### [North Dakota SNAP Benefits: 2027 Outlook, Current 2026 Amounts Up to $994/Month](https://savingtoinvest.com/north-dakota-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) **Published:** June 22, 2026 **Author:** Andy **Content:** ### Key Takeaways - FY2026 max SNAP benefit: $298/month for 1 person, $994/month for a family of 4 - Benefits load on your North Dakota EBT Card 1st (all recipients) - The OBBB expanded work requirements to adults 55–64 and parents of teens — if you were exempt before, check whether you still are - North Dakota uses BBCE at 200% FPL — more households qualify than in standard states - Apply or recertify at North Dakota HHS Benefits or call 701-328-2332 or 2-1-1 If you’re applying for or renewing SNAP in North Dakota, benefits load onto the North Dakota EBT Card 1st (all recipients) through North Dakota HHS Benefits. The fiscal year 2026 maximum for a family of four is $994 a month, up from $975 last year. The open question now is what USDA sets for FY2027, expected in late summer. But 2026 is a more complicated year than most for SNAP. The One Big Beautiful Bill (OBBB) made some of the biggest cuts to the program in its history — and some North Dakota residents who qualified last year may not qualify now. Here’s what changed, what you can expect to receive, and what to do if you’re denied. Covered in this Article: [Toggle](#) - [2026 SNAP Benefit Amounts in North Dakota](#2026_SNAP_Benefit_Amounts_in_North_Dakota) - [When Does SNAP Deposit to Your North Dakota EBT Card?](#When_Does_SNAP_Deposit_to_Your_North_Dakota_EBT_Card) - [What’s Changed in 2026: OBBB Work Requirements](#Whats_Changed_in_2026_OBBB_Work_Requirements) - [How to Qualify for North Dakota SNAP in 2026](#How_to_Qualify_for_North_Dakota_SNAP_in_2026) - [How to Apply](#How_to_Apply) - [What to Do If Your North Dakota SNAP Application Is Denied](#What_to_Do_If_Your_North_Dakota_SNAP_Application_Is_Denied) - [What to Watch: Potential SNAP Changes Ahead](#What_to_Watch_Potential_SNAP_Changes_Ahead) - [Where Can You Use Your North Dakota EBT Card?](#Where_Can_You_Use_Your_North_Dakota_EBT_Card) - [Other Benefits If You Receive North Dakota SNAP](#Other_Benefits_If_You_Receive_North_Dakota_SNAP) - [North Dakota SNAP: How Benefits Have Changed (2023–2026)](#North_Dakota_SNAP_How_Benefits_Have_Changed_2023%E2%80%932026) ## 2026 SNAP Benefit Amounts in North Dakota North Dakota uses the standard federal SNAP benefit schedule. Maximum monthly allotments for FY2026 (October 1, 2025 – September 30, 2026): Household SizeMax Monthly BenefitGross Income Limit (200% FPL)Net Income Limit (100% FPL)1 person$298$2,510/mo$1,255/mo2 people$546$3,406/mo$1,703/mo3 people$785$4,304/mo$2,152/mo4 people$994$5,200/mo$2,600/mo5 people$1,183$6,098/mo$3,049/mo6 people$1,421$6,994/mo$3,497/mo7 people$1,571$7,890/mo$3,945/mo8+ people$1,791+—— **North Dakota (ND) uses BBCE at 200% FPL** — significantly more generous than the 130% federal floor. A family of four can qualify with gross income up to **$5,200/month**, compared to just $3,380/month in the most restrictive states. Most households receive less than the maximum. Your actual benefit depends on net income after deductions (rent, utilities, child care, medical expenses for elderly or disabled members). ### How Much Would a Family of 4 Actually Receive in North Dakota? Here are two realistic examples to show the range: **Scenario A — Lower-income family** A family of 4 with gross monthly income of **$1,500** (one parent working part-time): - Gross income: $1,500 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$300 - Net income: $983 - 30% of net income: $295 - **Monthly SNAP benefit: $994 − $295 = $699** **Scenario B — Working family (moderate income)** A family of 4 with gross monthly income of **$3,200**: - Gross income: $3,200 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$640 - Net income: $2,343 - 30% of net income: $703 - **Monthly SNAP benefit: $994 − $703 = $291** The 20% earned income deduction rewards working households. Additional deductions for excess shelter costs, child care, or medical expenses (elderly/disabled) can increase your benefit further. ## When Does SNAP Deposit to Your North Dakota EBT Card? North Dakota (ND) distributes SNAP benefits on a **fixed date** — benefits load on the **1st (all recipients)** for all recipients. Your benefit date is on your approval letter or at [North Dakota HHS Benefits](https://www.nd.gov/dhs/snap). TANF cash benefits (if applicable) follow a separate deposit schedule. ## What’s Changed in 2026: OBBB Work Requirements The OBBB made several significant changes that took effect in late 2025 and early 2026: **Expanded work requirements**: Adults aged **55–64** who are able to work are now subject to SNAP work requirements for the first time. Previously the cutoff was 49. Parents whose youngest child is **over 14** are also now subject to work rules. **20 hours per week or 80 hours per month** — that’s the threshold for Able-Bodied Adults Without Dependents (ABAWDs) aged 18–64. Work, job training, or approved volunteer activity all count. Fail to meet the requirement and benefits are limited to **3 months in any 36-month period**. **State cost-sharing starting in 2028**: States will begin paying a share of benefit costs based on their SNAP payment error rate. This is new territory for all state budgets. **$186 billion in total federal SNAP cuts** over the next decade. If you were receiving SNAP in 2024 and haven’t recertified recently, check your current eligibility — the rules have shifted. ## How to Qualify for North Dakota SNAP in 2026 **Income**: Gross income must be at or below 200% FPL (see table above). Net income (after deductions) must be at or below 100% FPL. **Residency**: Must be a North Dakota resident. **Citizenship**: U.S. citizens and certain lawfully present immigrants qualify. Undocumented individuals are not eligible for federal SNAP benefits. **Work requirements**: Most able-bodied adults 18–64 must register for work and accept suitable employment. ABAWDs must meet the 80-hour/month work, training, or volunteer threshold. New in 2026: adults 55–64 are now included. ## How to Apply - **Online**: [North Dakota HHS Benefits](https://www.nd.gov/dhs/snap) — fastest option, available 24/7 - **In person**: Any local North Dakota Department of Health and Human Services office - **Phone**: 701-328-2332 or 2-1-1 North Dakota has up to **30 days** to process your application — or **7 days** if you qualify for expedited SNAP (very low income or resources). Benefits are backdated to your application date. Things can shift quickly. I’ll update this page when anything changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What to Do If Your North Dakota SNAP Application Is Denied Denials are common and often appealable. The most frequent reasons are income slightly over the stated limit, missing documentation, and work requirement issues — all of which can be addressed. **Step 1**: Read your denial notice carefully. North Dakota is required to explain the specific reason in writing. **Step 2**: Gather documentation that addresses the reason — recent pay stubs, rent receipts, proof of work activities, or a letter from your employer if hours changed. **Step 3**: Request a fair hearing within **90 days** of your denial. You can request one online at [North Dakota HHS Benefits](https://www.nd.gov/dhs/snap), in person at your local North Dakota Department of Health and Human Services office, or by calling **701-328-2332 or 2-1-1**. **Step 4**: While your appeal is pending, you can continue receiving benefits if you were previously approved — request continued benefits when you file your hearing request. --- ## What to Watch: Potential SNAP Changes Ahead **State cost-sharing (FY2027–2028)**: Starting in FY2027, North Dakota will begin paying a share of SNAP benefit costs — a first for all states. The percentage depends on North Dakota’s payment error rate. If cost pressure builds, expect tighter eligibility administration at the state level. **Work requirement enforcement**: Federal guidance on the expanded age 55–64 rules is still evolving. States are implementing these in phases — if you’re in the newly covered age range, check with your caseworker. **BBCE at risk**: North Dakota’s 200% FPL income limit narrowly survived the OBBB — earlier versions of the legislation would have eliminated it. If BBCE is eliminated in future legislation, the income limit for a family of 4 would drop from $5,200/month to $3,380/month. **FY2027 COLA adjustment**: Benefits update October 1. I’ll post FY2027 amounts here when USDA releases them (typically late summer 2026). Things can shift quickly — [Subscribe or follow us ↗](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates. --- ## Where Can You Use Your North Dakota EBT Card? **In stores**: Any USDA-authorized retailer — including Walmart, Hornbacher’s, Hugo’s, Cash Wise Foods, Dan’s Supermarket, and most independent grocery stores. Look for the EBT/SNAP sign at checkout. **Online**: North Dakota SNAP recipients can shop online through **Amazon Fresh** and **Walmart Grocery** — select SNAP/EBT as your payment method at checkout. Delivery fees are not covered by SNAP (only the groceries themselves). **Farmers markets**: Many North Dakota farmers markets accept EBT. Some participate in the Double Up Food Bucks program, which matches SNAP dollars on locally-grown produce. **What SNAP does NOT cover**: Alcohol, tobacco, vitamins/supplements, hot prepared foods, fast food, pet food, household supplies, or hygiene products. ## Other Benefits If You Receive North Dakota SNAP SNAP often unlocks access to other programs: - **Medicaid / CHIP**: Receiving SNAP can streamline Medicaid enrollment for adults and children. Apply through [North Dakota HHS Benefits](https://www.nd.gov/dhs/snap). - **LIHEAP**: Low Income Home Energy Assistance helps with utility bills. Contact your local community action agency or call 2-1-1. - **WIC**: Nutrition support for pregnant women, new mothers, and children under 5. Separate application through your state health department. - **Summer EBT (SUN Bucks)**: Extra food benefits for school-age children during summer months. Check with your state for 2026 enrollment. - **Free/reduced school meals**: SNAP households automatically qualify. Register through your child’s school district. For a full overview of federal SNAP amounts and recent cuts, see the [2026 SNAP benefits guide](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). See also: [North Dakota unemployment benefit amounts and eligibility rules](https://savingtoinvest.com/north-dakota-unemployment-benefits/). --- ## North Dakota SNAP: How Benefits Have Changed (2023–2026) PeriodMax Benefit (Family of 4)Key DevelopmentFY2023 (Oct 2022 – Sep 2023)$939/monthPandemic Emergency Allotments ended — biggest single drop since the pandemicFY2024 (Oct 2023 – Sep 2024)$973/month~3.7% COLA increase; first full year post-pandemicFY2025 (Oct 2024 – Sep 2025)$975/monthMinimal ~0.2% increase; OBBB signed into lawFY2026 (Oct 2025 – Sep 2026)$994/month~2% increase; expanded work requirements take effect The end of Emergency Allotments in early 2023 was the biggest disruption in recent memory — some households that had received the maximum saw benefits drop to $23/month. FY2026 numbers are all standard formula, no pandemic additions. Frequently Asked Questions QHow much is SNAP in North Dakota in 2026? AThe maximum monthly SNAP benefit in North Dakota (ND) for FY2026 is $298 for a single person, $546 for 2 people, $785 for 3 people, $994 for a family of 4, and $1,183 for 5 people. Most households receive less than the maximum based on net income after deductions. QWhen does SNAP deposit to my North Dakota EBT card? ABenefits load 1st (all recipients). Check your approval letter or North Dakota HHS Benefits for your exact deposit date. QWhat are the income limits for North Dakota SNAP in 2026? ANorth Dakota uses a gross income limit of 200% FPL — approximately $2,510/month for a single person or $5,200/month for a family of four. Net income (after deductions) must be at or below 100% FPL. QHow do I apply for SNAP in North Dakota? AApply online at https://www.nd.gov/dhs/snap, in person at a local North Dakota Department of Health and Human Services office, or by calling 701-328-2332 or 2-1-1. Processing takes up to 30 days, or 7 days if you qualify for expedited benefits. QWhat can I buy with my North Dakota EBT card? ASNAP covers groceries including produce, meat, dairy, bread, cereals, and packaged foods. You can shop in-store at most major grocery chains and online through Amazon Fresh and Walmart Grocery. SNAP does not cover alcohol, tobacco, hot prepared foods, vitamins, or non-food household items. QWhat do I do if my North Dakota SNAP application is denied? ARequest a fair hearing within 90 days of your denial notice. Apply online at https://www.nd.gov/dhs/snap, in person at a local office, or by calling 701-328-2332 or 2-1-1. The agency must explain the specific reason for denial — gather documentation addressing that reason before your hearing. QDid SNAP benefits change in 2026? AYes. The One Big Beautiful Bill (OBBB) expanded work requirements to include adults aged 55–64 and parents of children over 14. It cuts federal SNAP funding by $186 billion over 10 years and shifts some benefit costs to states starting in 2028. QCan I use my North Dakota EBT card at Walmart or Amazon? AYes to both. Walmart accepts North Dakota EBT in-store and online at walmart.com. Amazon Fresh also accepts SNAP/EBT online — select it as your payment method at checkout. Delivery fees are not covered, only eligible food items. **Categories:** Taxes and Retirement --- ### [North Carolina SNAP Benefits: 2027 Outlook, Current 2026 Amounts Up to $994/Month](https://savingtoinvest.com/north-carolina-nc-snap-food-and-nutrition-services-program-latest-updates-and-news/) **Published:** January 30, 2023 **Author:** Andy **Content:** ### Key Takeaways - FY2026 max SNAP benefit: $298/month for 1 person, $994/month for a family of 4 - Benefits load on your North Carolina EBT Card 3rd–21st - The OBBB expanded work requirements to adults 55–64 and parents of teens — if you were exempt before, check whether you still are - North Carolina uses BBCE at 200% FPL — more households qualify than in standard states - Apply or recertify at ePASS NC Benefits Portal or call 1-800-662-7030 North Carolina uses Broad-Based Categorical Eligibility at 200% of the poverty line, so more households qualify here than in states that stick to the federal floor. Either way, the fiscal year 2026 maximum benefit is the same nationwide: $994 a month for a family of four, up from $975 last year. The open question now is what USDA sets for FY2027, expected in late summer. But 2026 is a more complicated year than most for SNAP. The One Big Beautiful Bill (OBBB) made some of the biggest cuts to the program in its history — and some North Carolina residents who qualified last year may not qualify now. Here’s what changed, what you can expect to receive, and what to do if you’re denied. Covered in this Article: [Toggle](#) - [2026 SNAP Benefit Amounts in North Carolina](#2026_SNAP_Benefit_Amounts_in_North_Carolina) - [When Does SNAP Deposit to Your North Carolina EBT Card?](#When_Does_SNAP_Deposit_to_Your_North_Carolina_EBT_Card) - [What’s Changed in 2026: OBBB Work Requirements](#Whats_Changed_in_2026_OBBB_Work_Requirements) - [How to Qualify for North Carolina SNAP in 2026](#How_to_Qualify_for_North_Carolina_SNAP_in_2026) - [How to Apply](#How_to_Apply) - [What to Do If Your North Carolina SNAP Application Is Denied](#What_to_Do_If_Your_North_Carolina_SNAP_Application_Is_Denied) - [What to Watch: Potential SNAP Changes Ahead](#What_to_Watch_Potential_SNAP_Changes_Ahead) - [Where Can You Use Your North Carolina EBT Card?](#Where_Can_You_Use_Your_North_Carolina_EBT_Card) - [Other Benefits If You Receive North Carolina SNAP](#Other_Benefits_If_You_Receive_North_Carolina_SNAP) - [North Carolina SNAP: How Benefits Have Changed (2023–2026)](#North_Carolina_SNAP_How_Benefits_Have_Changed_2023%E2%80%932026) ## 2026 SNAP Benefit Amounts in North Carolina North Carolina uses the standard federal SNAP benefit schedule. Maximum monthly allotments for FY2026 (October 1, 2025 – September 30, 2026): Household SizeMax Monthly BenefitGross Income Limit (200% FPL)Net Income Limit (100% FPL)1 person$298$2,510/mo$1,255/mo2 people$546$3,406/mo$1,703/mo3 people$785$4,304/mo$2,152/mo4 people$994$5,200/mo$2,600/mo5 people$1,183$6,098/mo$3,049/mo6 people$1,421$6,994/mo$3,497/mo7 people$1,571$7,890/mo$3,945/mo8+ people$1,791+—— **North Carolina (NC) uses BBCE at 200% FPL** — significantly more generous than the 130% federal floor. A family of four can qualify with gross income up to **$5,200/month**, compared to just $3,380/month in the most restrictive states. Most households receive less than the maximum. Your actual benefit depends on net income after deductions (rent, utilities, child care, medical expenses for elderly or disabled members). ### How Much Would a Family of 4 Actually Receive in North Carolina? Here are two realistic examples to show the range: **Scenario A — Lower-income family** A family of 4 with gross monthly income of **$1,500** (one parent working part-time): - Gross income: $1,500 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$300 - Net income: $983 - 30% of net income: $295 - **Monthly SNAP benefit: $994 − $295 = $699** **Scenario B — Working family (moderate income)** A family of 4 with gross monthly income of **$3,200**: - Gross income: $3,200 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$640 - Net income: $2,343 - 30% of net income: $703 - **Monthly SNAP benefit: $994 − $703 = $291** The 20% earned income deduction rewards working households. Additional deductions for excess shelter costs, child care, or medical expenses (elderly/disabled) can increase your benefit further. ## When Does SNAP Deposit to Your North Carolina EBT Card? North Carolina (NC) distributes SNAP benefits based on the **last digit of your SSN**. Benefits load between the 3rd–21st each month: SSN Last DigitDeposit Date13rd25th37th49th511th613th715th817th919th021st Your case number is on your approval letter or available through [ePASS NC Benefits Portal](https://epass.nc.gov). Call **1-800-662-7030** if you’re unsure of your deposit date — it stays the same each month once you’re approved. TANF cash benefits (if applicable) follow a separate deposit schedule. ## What’s Changed in 2026: OBBB Work Requirements The OBBB made several significant changes that took effect in late 2025 and early 2026: **Expanded work requirements**: Adults aged **55–64** who are able to work are now subject to SNAP work requirements for the first time. Previously the cutoff was 49. Parents whose youngest child is **over 14** are also now subject to work rules. **20 hours per week or 80 hours per month** — that’s the threshold for Able-Bodied Adults Without Dependents (ABAWDs) aged 18–64. Work, job training, or approved volunteer activity all count. Fail to meet the requirement and benefits are limited to **3 months in any 36-month period**. **State cost-sharing starting in 2028**: States will begin paying a share of benefit costs based on their SNAP payment error rate. This is new territory for all state budgets. **$186 billion in total federal SNAP cuts** over the next decade. If you were receiving SNAP in 2024 and haven’t recertified recently, check your current eligibility — the rules have shifted. ## How to Qualify for North Carolina SNAP in 2026 **Income**: Gross income must be at or below 200% FPL (see table above). Net income (after deductions) must be at or below 100% FPL. **Residency**: Must be a North Carolina resident. **Citizenship**: U.S. citizens and certain lawfully present immigrants qualify. Undocumented individuals are not eligible for federal SNAP benefits. **Work requirements**: Most able-bodied adults 18–64 must register for work and accept suitable employment. ABAWDs must meet the 80-hour/month work, training, or volunteer threshold. New in 2026: adults 55–64 are now included. ## How to Apply - **Online**: [ePASS NC Benefits Portal](https://epass.nc.gov) — fastest option, available 24/7 - **In person**: Any local North Carolina Department of Health and Human Services office - **Phone**: 1-800-662-7030 North Carolina has up to **30 days** to process your application — or **7 days** if you qualify for expedited SNAP (very low income or resources). Benefits are backdated to your application date. Things can shift quickly. I’ll update this page when anything changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What to Do If Your North Carolina SNAP Application Is Denied Denials are common and often appealable. The most frequent reasons are income slightly over the stated limit, missing documentation, and work requirement issues — all of which can be addressed. **Step 1**: Read your denial notice carefully. North Carolina is required to explain the specific reason in writing. **Step 2**: Gather documentation that addresses the reason — recent pay stubs, rent receipts, proof of work activities, or a letter from your employer if hours changed. **Step 3**: Request a fair hearing within **90 days** of your denial. You can request one online at [ePASS NC Benefits Portal](https://epass.nc.gov), in person at your local North Carolina Department of Health and Human Services office, or by calling **1-800-662-7030**. **Step 4**: While your appeal is pending, you can continue receiving benefits if you were previously approved — request continued benefits when you file your hearing request. --- ## What to Watch: Potential SNAP Changes Ahead **State cost-sharing (FY2027–2028)**: Starting in FY2027, North Carolina will begin paying a share of SNAP benefit costs — a first for all states. The percentage depends on North Carolina’s payment error rate. If cost pressure builds, expect tighter eligibility administration at the state level. **Work requirement enforcement**: Federal guidance on the expanded age 55–64 rules is still evolving. States are implementing these in phases — if you’re in the newly covered age range, check with your caseworker. **BBCE at risk**: North Carolina’s 200% FPL income limit narrowly survived the OBBB — earlier versions of the legislation would have eliminated it. If BBCE is eliminated in future legislation, the income limit for a family of 4 would drop from $5,200/month to $3,380/month. **FY2027 COLA adjustment**: Benefits update October 1. I’ll post FY2027 amounts here when USDA releases them (typically late summer 2026). Things can shift quickly — [Subscribe or follow us ↗](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates. --- ## Where Can You Use Your North Carolina EBT Card? **In stores**: Any USDA-authorized retailer — including Walmart, Kroger, Harris Teeter, Food Lion, Publix, ALDI, and most independent grocery stores. Look for the EBT/SNAP sign at checkout. **Online**: North Carolina SNAP recipients can shop online through **Amazon Fresh** and **Walmart Grocery** — select SNAP/EBT as your payment method at checkout. Delivery fees are not covered by SNAP (only the groceries themselves). **Farmers markets**: Many North Carolina farmers markets accept EBT. Some participate in the Double Up Food Bucks program, which matches SNAP dollars on locally-grown produce. **What SNAP does NOT cover**: Alcohol, tobacco, vitamins/supplements, hot prepared foods, fast food, pet food, household supplies, or hygiene products. ## Other Benefits If You Receive North Carolina SNAP SNAP often unlocks access to other programs: - **Medicaid / CHIP**: Receiving SNAP can streamline Medicaid enrollment for adults and children. Apply through [ePASS NC Benefits Portal](https://epass.nc.gov). - **LIHEAP**: Low Income Home Energy Assistance helps with utility bills. Contact your local community action agency or call 2-1-1. - **WIC**: Nutrition support for pregnant women, new mothers, and children under 5. Separate application through your state health department. - **Summer EBT (SUN Bucks)**: Extra food benefits for school-age children during summer months. Check with your state for 2026 enrollment. - **Free/reduced school meals**: SNAP households automatically qualify. Register through your child’s school district. For a full overview of federal SNAP amounts and recent cuts, see the [2026 SNAP benefits guide](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). See also: [North Carolina unemployment benefit amounts and eligibility rules](https://savingtoinvest.com/north-carolina-unemployment-benefits/). --- ## North Carolina SNAP: How Benefits Have Changed (2023–2026) PeriodMax Benefit (Family of 4)Key DevelopmentFY2023 (Oct 2022 – Sep 2023)$939/monthPandemic Emergency Allotments ended — biggest single drop since the pandemicFY2024 (Oct 2023 – Sep 2024)$973/month~3.7% COLA increase; first full year post-pandemicFY2025 (Oct 2024 – Sep 2025)$975/monthMinimal ~0.2% increase; OBBB signed into lawFY2026 (Oct 2025 – Sep 2026)$994/month~2% increase; expanded work requirements take effect The end of Emergency Allotments in early 2023 was the biggest disruption in recent memory — some households that had received the maximum saw benefits drop to $23/month. FY2026 numbers are all standard formula, no pandemic additions. Frequently Asked Questions QHow much is SNAP in North Carolina in 2026? AThe maximum monthly SNAP benefit in North Carolina (NC) for FY2026 is $298 for a single person, $546 for 2 people, $785 for 3 people, $994 for a family of 4, and $1,183 for 5 people. Most households receive less than the maximum based on net income after deductions. QWhen does SNAP deposit to my North Carolina EBT card? ABenefits load 3rd–21st. Check your approval letter or ePASS NC Benefits Portal for your exact deposit date. QWhat are the income limits for North Carolina SNAP in 2026? ANorth Carolina uses a gross income limit of 200% FPL — approximately $2,510/month for a single person or $5,200/month for a family of four. Net income (after deductions) must be at or below 100% FPL. QHow do I apply for SNAP in North Carolina? AApply online at https://epass.nc.gov, in person at a local North Carolina Department of Health and Human Services (NCDHHS) office, or by calling 1-800-662-7030. Processing takes up to 30 days, or 7 days if you qualify for expedited benefits. QWhat can I buy with my North Carolina EBT card? ASNAP covers groceries including produce, meat, dairy, bread, cereals, and packaged foods. You can shop in-store at most major grocery chains and online through Amazon Fresh and Walmart Grocery. SNAP does not cover alcohol, tobacco, hot prepared foods, vitamins, or non-food household items. QWhat do I do if my North Carolina SNAP application is denied? ARequest a fair hearing within 90 days of your denial notice. Apply online at https://epass.nc.gov, in person at a local office, or by calling 1-800-662-7030. The agency must explain the specific reason for denial — gather documentation addressing that reason before your hearing. QDid SNAP benefits change in 2026? AYes. The One Big Beautiful Bill (OBBB) expanded work requirements to include adults aged 55–64 and parents of children over 14. It cuts federal SNAP funding by $186 billion over 10 years and shifts some benefit costs to states starting in 2028. QCan I use my North Carolina EBT card at Walmart or Amazon? AYes to both. Walmart accepts North Carolina EBT in-store and online at walmart.com. Amazon Fresh also accepts SNAP/EBT online — select it as your payment method at checkout. Delivery fees are not covered, only eligible food items. **Categories:** Government Rebates and Payments --- ### [New York SNAP Benefits: 2027 Outlook, Current 2026 Amounts Up to $994/Month](https://savingtoinvest.com/new-york-ny-snap-program-latest-updates-and-news/) **Published:** January 30, 2023 **Author:** Andy **Content:** ### Key Takeaways - FY2026 max SNAP benefit: $298/month for 1 person, $994/month for a family of 4 - Benefits load on your New York EBT Card 1st–9th - The OBBB expanded work requirements to adults 55–64 and parents of teens — if you were exempt before, check whether you still are - New York uses BBCE at 200% FPL — more households qualify than in standard states - Apply or recertify at myBenefits NY or call 1-800-342-3009 A family of four on SNAP in New York can get up to $994 a month in fiscal year 2026 — up from $975 last year — deposited onto the New York EBT Card 1st–9th. The open question now is what USDA sets for FY2027, expected in late summer. But 2026 is a more complicated year than most for SNAP. The One Big Beautiful Bill (OBBB) made some of the biggest cuts to the program in its history — and some New York residents who qualified last year may not qualify now. Here’s what changed, what you can expect to receive, and what to do if you’re denied. Covered in this Article: [Toggle](#) - [2026 SNAP Benefit Amounts in New York](#2026_SNAP_Benefit_Amounts_in_New_York) - [How Much Would a Family of 4 Actually Receive in New York?](#How_Much_Would_a_Family_of_4_Actually_Receive_in_New_York) - [When Does SNAP Deposit to Your New York EBT Card?](#When_Does_SNAP_Deposit_to_Your_New_York_EBT_Card) - [What’s Changed in 2026: OBBB Work Requirements](#Whats_Changed_in_2026_OBBB_Work_Requirements) - [How to Qualify for New York SNAP in 2026](#How_to_Qualify_for_New_York_SNAP_in_2026) - [How to Apply](#How_to_Apply) - [What to Do If Your New York SNAP Application Is Denied](#What_to_Do_If_Your_New_York_SNAP_Application_Is_Denied) - [What to Watch: Potential SNAP Changes Ahead](#What_to_Watch_Potential_SNAP_Changes_Ahead) - [Where Can You Use Your New York EBT Card?](#Where_Can_You_Use_Your_New_York_EBT_Card) - [Other Benefits If You Receive New York SNAP](#Other_Benefits_If_You_Receive_New_York_SNAP) - [New York SNAP: How Benefits Have Changed (2023–2026)](#New_York_SNAP_How_Benefits_Have_Changed_2023%E2%80%932026) ## 2026 SNAP Benefit Amounts in New York New York uses the standard federal SNAP benefit schedule. Maximum monthly allotments for FY2026 (October 1, 2025 – September 30, 2026): Household SizeMax Monthly BenefitGross Income Limit (200% FPL)Net Income Limit (100% FPL)1 person$298$2,510/mo$1,255/mo2 people$546$3,406/mo$1,703/mo3 people$785$4,304/mo$2,152/mo4 people$994$5,200/mo$2,600/mo5 people$1,183$6,098/mo$3,049/mo6 people$1,421$6,994/mo$3,497/mo7 people$1,571$7,890/mo$3,945/mo8+ people$1,791+—— **New York (NY) uses BBCE at 200% FPL** — significantly more generous than the 130% federal floor. A family of four can qualify with gross income up to **$5,200/month**, compared to just $3,380/month in the most restrictive states. Most households receive less than the maximum. Your actual benefit depends on net income after deductions (rent, utilities, child care, medical expenses for elderly or disabled members). ### How Much Would a Family of 4 Actually Receive in New York? Here are two realistic examples to show the range: **Scenario A — Lower-income family** A family of 4 with gross monthly income of **$1,500** (one parent working part-time): - Gross income: $1,500 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$300 - Net income: $983 - 30% of net income: $295 - **Monthly SNAP benefit: $994 − $295 = $699** **Scenario B — Working family (moderate income)** A family of 4 with gross monthly income of **$3,200**: - Gross income: $3,200 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$640 - Net income: $2,343 - 30% of net income: $703 - **Monthly SNAP benefit: $994 − $703 = $291** The 20% earned income deduction rewards working households. Additional deductions for excess shelter costs, child care, or medical expenses (elderly/disabled) can increase your benefit further. ## When Does SNAP Deposit to Your New York EBT Card? New York (NY) distributes SNAP benefits based on the **last digit of your case number**. Benefits load between the 1st–9th each month: Case # Last DigitDeposit Date11st22nd33rd44th55th65th76th87th98th09th Your case number is on your approval letter or available through [myBenefits NY](https://mybenefits.ny.gov). Call **1-800-342-3009** if you’re unsure of your deposit date — it stays the same each month once you’re approved. TANF cash benefits (if applicable) follow a separate deposit schedule. ## What’s Changed in 2026: OBBB Work Requirements The OBBB made several significant changes that took effect in late 2025 and early 2026: **Expanded work requirements**: Adults aged **55–64** who are able to work are now subject to SNAP work requirements for the first time. Previously the cutoff was 49. Parents whose youngest child is **over 14** are also now subject to work rules. **20 hours per week or 80 hours per month** — that’s the threshold for Able-Bodied Adults Without Dependents (ABAWDs) aged 18–64. Work, job training, or approved volunteer activity all count. Fail to meet the requirement and benefits are limited to **3 months in any 36-month period**. **State cost-sharing starting in 2028**: States will begin paying a share of benefit costs based on their SNAP payment error rate. This is new territory for all state budgets. **$186 billion in total federal SNAP cuts** over the next decade. If you were receiving SNAP in 2024 and haven’t recertified recently, check your current eligibility — the rules have shifted. ## How to Qualify for New York SNAP in 2026 **Income**: Gross income must be at or below 200% FPL (see table above). Net income (after deductions) must be at or below 100% FPL. **Residency**: Must be a New York resident. **Citizenship**: U.S. citizens and certain lawfully present immigrants qualify. Undocumented individuals are not eligible for federal SNAP benefits. **Work requirements**: Most able-bodied adults 18–64 must register for work and accept suitable employment. ABAWDs must meet the 80-hour/month work, training, or volunteer threshold. New in 2026: adults 55–64 are now included. ## How to Apply - **Online**: [myBenefits NY](https://mybenefits.ny.gov) — fastest option, available 24/7 - **In person**: Any local New York Office of Temporary and Disability Assistance office - **Phone**: 1-800-342-3009 New York has up to **30 days** to process your application — or **7 days** if you qualify for expedited SNAP (very low income or resources). Benefits are backdated to your application date. Things can shift quickly. I’ll update this page when anything changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What to Do If Your New York SNAP Application Is Denied Denials are common and often appealable. The most frequent reasons are income slightly over the stated limit, missing documentation, and work requirement issues — all of which can be addressed. **Step 1**: Read your denial notice carefully. New York is required to explain the specific reason in writing. **Step 2**: Gather documentation that addresses the reason — recent pay stubs, rent receipts, proof of work activities, or a letter from your employer if hours changed. **Step 3**: Request a fair hearing within **90 days** of your denial. You can request one online at [myBenefits NY](https://mybenefits.ny.gov), in person at your local New York Office of Temporary and Disability Assistance office, or by calling **1-800-342-3009**. **Step 4**: While your appeal is pending, you can continue receiving benefits if you were previously approved — request continued benefits when you file your hearing request. --- ## What to Watch: Potential SNAP Changes Ahead **State cost-sharing (FY2027–2028)**: Starting in FY2027, New York will begin paying a share of SNAP benefit costs — a first for all states. The percentage depends on New York’s payment error rate. If cost pressure builds, expect tighter eligibility administration at the state level. **Work requirement enforcement**: Federal guidance on the expanded age 55–64 rules is still evolving. States are implementing these in phases — if you’re in the newly covered age range, check with your caseworker. **BBCE at risk**: New York’s 200% FPL income limit narrowly survived the OBBB — earlier versions of the legislation would have eliminated it. If BBCE is eliminated in future legislation, the income limit for a family of 4 would drop from $5,200/month to $3,380/month. **FY2027 COLA adjustment**: Benefits update October 1. I’ll post FY2027 amounts here when USDA releases them (typically late summer 2026). Things can shift quickly — [Subscribe or follow us ↗](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates. --- ## Where Can You Use Your New York EBT Card? **In stores**: Any USDA-authorized retailer — including Walmart, Stop & Shop, ShopRite, Key Food, Associated Supermarkets, ALDI, Trader Joe’s, and most independent grocery stores. Look for the EBT/SNAP sign at checkout. **Online**: New York SNAP recipients can shop online through **Amazon Fresh** and **Walmart Grocery** — select SNAP/EBT as your payment method at checkout. Delivery fees are not covered by SNAP (only the groceries themselves). **Farmers markets**: Many New York farmers markets accept EBT. Some participate in the Double Up Food Bucks program, which matches SNAP dollars on locally-grown produce. **What SNAP does NOT cover**: Alcohol, tobacco, vitamins/supplements, hot prepared foods, fast food, pet food, household supplies, or hygiene products. ## Other Benefits If You Receive New York SNAP SNAP often unlocks access to other programs: - **Medicaid / CHIP**: Receiving SNAP can streamline Medicaid enrollment for adults and children. Apply through [myBenefits NY](https://mybenefits.ny.gov). - **LIHEAP**: Low Income Home Energy Assistance helps with utility bills. Contact your local community action agency or call 2-1-1. - **WIC**: Nutrition support for pregnant women, new mothers, and children under 5. Separate application through your state health department. - **Summer EBT (SUN Bucks)**: Extra food benefits for school-age children during summer months. Check with your state for 2026 enrollment. - **Free/reduced school meals**: SNAP households automatically qualify. Register through your child’s school district. For a full overview of federal SNAP amounts and recent cuts, see the [2026 SNAP benefits guide](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). See also: [New York unemployment benefit amounts and eligibility rules](https://savingtoinvest.com/new-york-unemployment-benefits/). --- ## New York SNAP: How Benefits Have Changed (2023–2026) PeriodMax Benefit (Family of 4)Key DevelopmentFY2023 (Oct 2022 – Sep 2023)$939/monthPandemic Emergency Allotments ended — biggest single drop since the pandemicFY2024 (Oct 2023 – Sep 2024)$973/month~3.7% COLA increase; first full year post-pandemicFY2025 (Oct 2024 – Sep 2025)$975/monthMinimal ~0.2% increase; OBBB signed into lawFY2026 (Oct 2025 – Sep 2026)$994/month~2% increase; expanded work requirements take effect The end of Emergency Allotments in early 2023 was the biggest disruption in recent memory — some households that had received the maximum saw benefits drop to $23/month. FY2026 numbers are all standard formula, no pandemic additions. Frequently Asked Questions QHow much is SNAP in New York in 2026? AThe maximum monthly SNAP benefit in New York (NY) for FY2026 is $298 for a single person, $546 for 2 people, $785 for 3 people, $994 for a family of 4, and $1,183 for 5 people. Most households receive less than the maximum based on net income after deductions. QWhen does SNAP deposit to my New York EBT card? ABenefits load 1st–9th. Check your approval letter or myBenefits NY for your exact deposit date. QWhat are the income limits for New York SNAP in 2026? ANew York uses a gross income limit of 200% FPL — approximately $2,510/month for a single person or $5,200/month for a family of four. Net income (after deductions) must be at or below 100% FPL. QHow do I apply for SNAP in New York? AApply online at https://mybenefits.ny.gov, in person at a local New York Office of Temporary and Disability Assistance (OTDA) office, or by calling 1-800-342-3009. Processing takes up to 30 days, or 7 days if you qualify for expedited benefits. QWhat can I buy with my New York EBT card? ASNAP covers groceries including produce, meat, dairy, bread, cereals, and packaged foods. You can shop in-store at most major grocery chains and online through Amazon Fresh and Walmart Grocery. SNAP does not cover alcohol, tobacco, hot prepared foods, vitamins, or non-food household items. QWhat do I do if my New York SNAP application is denied? ARequest a fair hearing within 90 days of your denial notice. Apply online at https://mybenefits.ny.gov, in person at a local office, or by calling 1-800-342-3009. The agency must explain the specific reason for denial — gather documentation addressing that reason before your hearing. QDid SNAP benefits change in 2026? AYes. The One Big Beautiful Bill (OBBB) expanded work requirements to include adults aged 55–64 and parents of children over 14. It cuts federal SNAP funding by $186 billion over 10 years and shifts some benefit costs to states starting in 2028. QCan I use my New York EBT card at Walmart or Amazon? AYes to both. Walmart accepts New York EBT in-store and online at walmart.com. Amazon Fresh also accepts SNAP/EBT online — select it as your payment method at checkout. Delivery fees are not covered, only eligible food items. **Categories:** Government Rebates and Payments --- ### [New Mexico SNAP Benefits: 2027 Outlook, Current 2026 Amounts Up to $994/Month](https://savingtoinvest.com/new-mexico-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) **Published:** June 22, 2026 **Author:** Andy **Content:** ### Key Takeaways - FY2026 max SNAP benefit: $298/month for 1 person, $994/month for a family of 4 - Benefits load on your New Mexico EBT Fiesta Card 1st–20th - The OBBB expanded work requirements to adults 55–64 and parents of teens — if you were exempt before, check whether you still are - New Mexico uses BBCE at 200% FPL — more households qualify than in standard states - Apply or recertify at YesNM Benefits Portal or call 1-800-283-4465 New Mexico’s SNAP benefits load onto your New Mexico EBT Fiesta Card 1st–20th. The maximum for a family of four is $994 a month in fiscal year 2026, up from $975 last year. The open question now is what USDA sets for FY2027, expected in late summer. But 2026 is a more complicated year than most for SNAP. The One Big Beautiful Bill (OBBB) made some of the biggest cuts to the program in its history — and some New Mexico residents who qualified last year may not qualify now. Here’s what changed, what you can expect to receive, and what to do if you’re denied. Covered in this Article: [Toggle](#) - [2026 SNAP Benefit Amounts in New Mexico](#2026_SNAP_Benefit_Amounts_in_New_Mexico) - [When Does SNAP Deposit to Your New Mexico EBT Card?](#When_Does_SNAP_Deposit_to_Your_New_Mexico_EBT_Card) - [What’s Changed in 2026: OBBB Work Requirements](#Whats_Changed_in_2026_OBBB_Work_Requirements) - [How to Qualify for New Mexico SNAP in 2026](#How_to_Qualify_for_New_Mexico_SNAP_in_2026) - [How to Apply](#How_to_Apply) - [What to Do If Your New Mexico SNAP Application Is Denied](#What_to_Do_If_Your_New_Mexico_SNAP_Application_Is_Denied) - [What to Watch: Potential SNAP Changes Ahead](#What_to_Watch_Potential_SNAP_Changes_Ahead) - [Where Can You Use Your New Mexico EBT Card?](#Where_Can_You_Use_Your_New_Mexico_EBT_Card) - [Other Benefits If You Receive New Mexico SNAP](#Other_Benefits_If_You_Receive_New_Mexico_SNAP) - [New Mexico SNAP: How Benefits Have Changed (2023–2026)](#New_Mexico_SNAP_How_Benefits_Have_Changed_2023%E2%80%932026) ## 2026 SNAP Benefit Amounts in New Mexico New Mexico uses the standard federal SNAP benefit schedule. Maximum monthly allotments for FY2026 (October 1, 2025 – September 30, 2026): Household SizeMax Monthly BenefitGross Income Limit (200% FPL)Net Income Limit (100% FPL)1 person$298$2,510/mo$1,255/mo2 people$546$3,406/mo$1,703/mo3 people$785$4,304/mo$2,152/mo4 people$994$5,200/mo$2,600/mo5 people$1,183$6,098/mo$3,049/mo6 people$1,421$6,994/mo$3,497/mo7 people$1,571$7,890/mo$3,945/mo8+ people$1,791+—— **New Mexico (NM) uses BBCE at 200% FPL** — significantly more generous than the 130% federal floor. A family of four can qualify with gross income up to **$5,200/month**, compared to just $3,380/month in the most restrictive states. Most households receive less than the maximum. Your actual benefit depends on net income after deductions (rent, utilities, child care, medical expenses for elderly or disabled members). ### How Much Would a Family of 4 Actually Receive in New Mexico? Here are two realistic examples to show the range: **Scenario A — Lower-income family** A family of 4 with gross monthly income of **$1,500** (one parent working part-time): - Gross income: $1,500 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$300 - Net income: $983 - 30% of net income: $295 - **Monthly SNAP benefit: $994 − $295 = $699** **Scenario B — Working family (moderate income)** A family of 4 with gross monthly income of **$3,200**: - Gross income: $3,200 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$640 - Net income: $2,343 - 30% of net income: $703 - **Monthly SNAP benefit: $994 − $703 = $291** The 20% earned income deduction rewards working households. Additional deductions for excess shelter costs, child care, or medical expenses (elderly/disabled) can increase your benefit further. ## When Does SNAP Deposit to Your New Mexico EBT Card? New Mexico (NM) distributes SNAP benefits based on the **last digit of your SSN**. Benefits load between the 1st–20th each month: SSN Last DigitDeposit Date11st23rd35th47th59th612th714th816th918th020th Your case number is on your approval letter or available through [YesNM Benefits Portal](https://yes.state.nm.us). Call **1-800-283-4465** if you’re unsure of your deposit date — it stays the same each month once you’re approved. TANF cash benefits (if applicable) follow a separate deposit schedule. ## What’s Changed in 2026: OBBB Work Requirements The OBBB made several significant changes that took effect in late 2025 and early 2026: **Expanded work requirements**: Adults aged **55–64** who are able to work are now subject to SNAP work requirements for the first time. Previously the cutoff was 49. Parents whose youngest child is **over 14** are also now subject to work rules. **20 hours per week or 80 hours per month** — that’s the threshold for Able-Bodied Adults Without Dependents (ABAWDs) aged 18–64. Work, job training, or approved volunteer activity all count. Fail to meet the requirement and benefits are limited to **3 months in any 36-month period**. **State cost-sharing starting in 2028**: States will begin paying a share of benefit costs based on their SNAP payment error rate. This is new territory for all state budgets. **$186 billion in total federal SNAP cuts** over the next decade. If you were receiving SNAP in 2024 and haven’t recertified recently, check your current eligibility — the rules have shifted. ## How to Qualify for New Mexico SNAP in 2026 **Income**: Gross income must be at or below 200% FPL (see table above). Net income (after deductions) must be at or below 100% FPL. **Residency**: Must be a New Mexico resident. **Citizenship**: U.S. citizens and certain lawfully present immigrants qualify. Undocumented individuals are not eligible for federal SNAP benefits. **Work requirements**: Most able-bodied adults 18–64 must register for work and accept suitable employment. ABAWDs must meet the 80-hour/month work, training, or volunteer threshold. New in 2026: adults 55–64 are now included. ## How to Apply - **Online**: [YesNM Benefits Portal](https://yes.state.nm.us) — fastest option, available 24/7 - **In person**: Any local New Mexico Human Services Department office - **Phone**: 1-800-283-4465 New Mexico has up to **30 days** to process your application — or **7 days** if you qualify for expedited SNAP (very low income or resources). Benefits are backdated to your application date. Things can shift quickly. I’ll update this page when anything changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What to Do If Your New Mexico SNAP Application Is Denied Denials are common and often appealable. The most frequent reasons are income slightly over the stated limit, missing documentation, and work requirement issues — all of which can be addressed. **Step 1**: Read your denial notice carefully. New Mexico is required to explain the specific reason in writing. **Step 2**: Gather documentation that addresses the reason — recent pay stubs, rent receipts, proof of work activities, or a letter from your employer if hours changed. **Step 3**: Request a fair hearing within **90 days** of your denial. You can request one online at [YesNM Benefits Portal](https://yes.state.nm.us), in person at your local New Mexico Human Services Department office, or by calling **1-800-283-4465**. **Step 4**: While your appeal is pending, you can continue receiving benefits if you were previously approved — request continued benefits when you file your hearing request. --- ## What to Watch: Potential SNAP Changes Ahead **State cost-sharing (FY2027–2028)**: Starting in FY2027, New Mexico will begin paying a share of SNAP benefit costs — a first for all states. The percentage depends on New Mexico’s payment error rate. If cost pressure builds, expect tighter eligibility administration at the state level. **Work requirement enforcement**: Federal guidance on the expanded age 55–64 rules is still evolving. States are implementing these in phases — if you’re in the newly covered age range, check with your caseworker. **BBCE at risk**: New Mexico’s 200% FPL income limit narrowly survived the OBBB — earlier versions of the legislation would have eliminated it. If BBCE is eliminated in future legislation, the income limit for a family of 4 would drop from $5,200/month to $3,380/month. **FY2027 COLA adjustment**: Benefits update October 1. I’ll post FY2027 amounts here when USDA releases them (typically late summer 2026). Things can shift quickly — [Subscribe or follow us ↗](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates. --- ## Where Can You Use Your New Mexico EBT Card? **In stores**: Any USDA-authorized retailer — including Walmart, Smith’s (Kroger), Albertsons, ALDI, Sprouts, Natural Grocers, and most independent grocery stores. Look for the EBT/SNAP sign at checkout. **Online**: New Mexico SNAP recipients can shop online through **Amazon Fresh** and **Walmart Grocery** — select SNAP/EBT as your payment method at checkout. Delivery fees are not covered by SNAP (only the groceries themselves). **Farmers markets**: Many New Mexico farmers markets accept EBT. Some participate in the Double Up Food Bucks program, which matches SNAP dollars on locally-grown produce. **What SNAP does NOT cover**: Alcohol, tobacco, vitamins/supplements, hot prepared foods, fast food, pet food, household supplies, or hygiene products. ## Other Benefits If You Receive New Mexico SNAP SNAP often unlocks access to other programs: - **Medicaid / CHIP**: Receiving SNAP can streamline Medicaid enrollment for adults and children. Apply through [YesNM Benefits Portal](https://yes.state.nm.us). - **LIHEAP**: Low Income Home Energy Assistance helps with utility bills. Contact your local community action agency or call 2-1-1. - **WIC**: Nutrition support for pregnant women, new mothers, and children under 5. Separate application through your state health department. - **Summer EBT (SUN Bucks)**: Extra food benefits for school-age children during summer months. Check with your state for 2026 enrollment. - **Free/reduced school meals**: SNAP households automatically qualify. Register through your child’s school district. For a full overview of federal SNAP amounts and recent cuts, see the [2026 SNAP benefits guide](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). See also: [New Mexico unemployment benefit amounts and eligibility rules](https://savingtoinvest.com/new-mexico-unemployment-benefits/). --- ## New Mexico SNAP: How Benefits Have Changed (2023–2026) PeriodMax Benefit (Family of 4)Key DevelopmentFY2023 (Oct 2022 – Sep 2023)$939/monthPandemic Emergency Allotments ended — biggest single drop since the pandemicFY2024 (Oct 2023 – Sep 2024)$973/month~3.7% COLA increase; first full year post-pandemicFY2025 (Oct 2024 – Sep 2025)$975/monthMinimal ~0.2% increase; OBBB signed into lawFY2026 (Oct 2025 – Sep 2026)$994/month~2% increase; expanded work requirements take effect The end of Emergency Allotments in early 2023 was the biggest disruption in recent memory — some households that had received the maximum saw benefits drop to $23/month. FY2026 numbers are all standard formula, no pandemic additions. Frequently Asked Questions QHow much is SNAP in New Mexico in 2026? AThe maximum monthly SNAP benefit in New Mexico (NM) for FY2026 is $298 for a single person, $546 for 2 people, $785 for 3 people, $994 for a family of 4, and $1,183 for 5 people. Most households receive less than the maximum based on net income after deductions. QWhen does SNAP deposit to my New Mexico EBT card? ABenefits load 1st–20th. Check your approval letter or YesNM Benefits Portal for your exact deposit date. QWhat are the income limits for New Mexico SNAP in 2026? ANew Mexico uses a gross income limit of 200% FPL — approximately $2,510/month for a single person or $5,200/month for a family of four. Net income (after deductions) must be at or below 100% FPL. QHow do I apply for SNAP in New Mexico? AApply online at https://yes.state.nm.us, in person at a local New Mexico Human Services Department (HSD) office, or by calling 1-800-283-4465. Processing takes up to 30 days, or 7 days if you qualify for expedited benefits. QWhat can I buy with my New Mexico EBT card? ASNAP covers groceries including produce, meat, dairy, bread, cereals, and packaged foods. You can shop in-store at most major grocery chains and online through Amazon Fresh and Walmart Grocery. SNAP does not cover alcohol, tobacco, hot prepared foods, vitamins, or non-food household items. QWhat do I do if my New Mexico SNAP application is denied? ARequest a fair hearing within 90 days of your denial notice. Apply online at https://yes.state.nm.us, in person at a local office, or by calling 1-800-283-4465. The agency must explain the specific reason for denial — gather documentation addressing that reason before your hearing. QDid SNAP benefits change in 2026? AYes. The One Big Beautiful Bill (OBBB) expanded work requirements to include adults aged 55–64 and parents of children over 14. It cuts federal SNAP funding by $186 billion over 10 years and shifts some benefit costs to states starting in 2028. QCan I use my New Mexico EBT card at Walmart or Amazon? AYes to both. Walmart accepts New Mexico EBT in-store and online at walmart.com. Amazon Fresh also accepts SNAP/EBT online — select it as your payment method at checkout. Delivery fees are not covered, only eligible food items. **Categories:** Taxes and Retirement --- ### [New Jersey SNAP Benefits: 2027 Outlook, Current 2026 Amounts Up to $994/Month](https://savingtoinvest.com/new-jersey-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) **Published:** June 22, 2026 **Author:** Andy **Content:** ### Key Takeaways - FY2026 max SNAP benefit: $298/month for 1 person, $994/month for a family of 4 - Benefits load on your NJ Families First Card (EBT) 1st–5th - The OBBB expanded work requirements to adults 55–64 and parents of teens — if you were exempt before, check whether you still are - New Jersey uses BBCE at 185% FPL — more households qualify than in standard states - Apply or recertify at myNJhelps Benefits Portal or call 1-800-792-9773 myNJhelps Benefits Portal handles SNAP applications and recertifications in New Jersey, with benefits loading onto the NJ Families First Card (EBT) 1st–5th. Fiscal year 2026’s maximum for a family of four is $994 a month, up $19 from last year’s $975. The open question now is what USDA sets for FY2027, expected in late summer. But 2026 is a more complicated year than most for SNAP. The One Big Beautiful Bill (OBBB) made some of the biggest cuts to the program in its history — and some New Jersey residents who qualified last year may not qualify now. Here’s what changed, what you can expect to receive, and what to do if you’re denied. Covered in this Article: [Toggle](#) - [2026 SNAP Benefit Amounts in New Jersey](#2026_SNAP_Benefit_Amounts_in_New_Jersey) - [When Does SNAP Deposit to Your New Jersey EBT Card?](#When_Does_SNAP_Deposit_to_Your_New_Jersey_EBT_Card) - [What’s Changed in 2026: OBBB Work Requirements](#Whats_Changed_in_2026_OBBB_Work_Requirements) - [How to Qualify for New Jersey SNAP in 2026](#How_to_Qualify_for_New_Jersey_SNAP_in_2026) - [How to Apply](#How_to_Apply) - [What to Do If Your New Jersey SNAP Application Is Denied](#What_to_Do_If_Your_New_Jersey_SNAP_Application_Is_Denied) - [What to Watch: Potential SNAP Changes Ahead](#What_to_Watch_Potential_SNAP_Changes_Ahead) - [Where Can You Use Your New Jersey EBT Card?](#Where_Can_You_Use_Your_New_Jersey_EBT_Card) - [Other Benefits If You Receive New Jersey SNAP](#Other_Benefits_If_You_Receive_New_Jersey_SNAP) - [New Jersey SNAP: How Benefits Have Changed (2023–2026)](#New_Jersey_SNAP_How_Benefits_Have_Changed_2023%E2%80%932026) ## 2026 SNAP Benefit Amounts in New Jersey New Jersey uses the standard federal SNAP benefit schedule. Maximum monthly allotments for FY2026 (October 1, 2025 – September 30, 2026): Household SizeMax Monthly BenefitGross Income Limit (185% FPL)Net Income Limit (100% FPL)1 person$298$2,322/mo$1,255/mo2 people$546$3,151/mo$1,703/mo3 people$785$3,981/mo$2,152/mo4 people$994$4,810/mo$2,600/mo5 people$1,183$5,641/mo$3,049/mo6 people$1,421$6,469/mo$3,497/mo7 people$1,571$7,298/mo$3,945/mo8+ people$1,791+—— **New Jersey (NJ) uses BBCE at 185% FPL**, well above the federal floor. A family of four can qualify with gross income up to **$4,810/month** — about $1,430/month more than in non-BBCE states. Most households receive less than the maximum. Your actual benefit depends on net income after deductions (rent, utilities, child care, medical expenses for elderly or disabled members). ### How Much Would a Family of 4 Actually Receive in New Jersey? Here are two realistic examples to show the range: **Scenario A — Lower-income family** A family of 4 with gross monthly income of **$1,500** (one parent working part-time): - Gross income: $1,500 ✓ (within $4,810/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$300 - Net income: $983 - 30% of net income: $295 - **Monthly SNAP benefit: $994 − $295 = $699** **Scenario B — Working family (moderate income)** A family of 4 with gross monthly income of **$2,500**: - Gross income: $2,500 ✓ (within $4,810/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$500 - Net income: $1,783 - 30% of net income: $535 - **Monthly SNAP benefit: $994 − $535 = $459** The 20% earned income deduction rewards working households. Additional deductions for excess shelter costs, child care, or medical expenses (elderly/disabled) can increase your benefit further. ## When Does SNAP Deposit to Your New Jersey EBT Card? New Jersey (NJ) distributes SNAP benefits based on the **last digit of your case number**. Benefits load between the 1st–5th each month: Case # Last DigitDeposit Date11st21st32nd42nd53rd63rd74th84th95th05th Your case number is on your approval letter or available through [myNJhelps Benefits Portal](https://www.mynjhelps.gov). Call **1-800-792-9773** if you’re unsure of your deposit date — it stays the same each month once you’re approved. TANF cash benefits (if applicable) follow a separate deposit schedule. ## What’s Changed in 2026: OBBB Work Requirements The OBBB made several significant changes that took effect in late 2025 and early 2026: **Expanded work requirements**: Adults aged **55–64** who are able to work are now subject to SNAP work requirements for the first time. Previously the cutoff was 49. Parents whose youngest child is **over 14** are also now subject to work rules. **20 hours per week or 80 hours per month** — that’s the threshold for Able-Bodied Adults Without Dependents (ABAWDs) aged 18–64. Work, job training, or approved volunteer activity all count. Fail to meet the requirement and benefits are limited to **3 months in any 36-month period**. **State cost-sharing starting in 2028**: States will begin paying a share of benefit costs based on their SNAP payment error rate. This is new territory for all state budgets. **$186 billion in total federal SNAP cuts** over the next decade. If you were receiving SNAP in 2024 and haven’t recertified recently, check your current eligibility — the rules have shifted. ## How to Qualify for New Jersey SNAP in 2026 **Income**: Gross income must be at or below 185% FPL (see table above). Net income (after deductions) must be at or below 100% FPL. **Residency**: Must be a New Jersey resident. **Citizenship**: U.S. citizens and certain lawfully present immigrants qualify. Undocumented individuals are not eligible for federal SNAP benefits. **Work requirements**: Most able-bodied adults 18–64 must register for work and accept suitable employment. ABAWDs must meet the 80-hour/month work, training, or volunteer threshold. New in 2026: adults 55–64 are now included. ## How to Apply - **Online**: [myNJhelps Benefits Portal](https://www.mynjhelps.gov) — fastest option, available 24/7 - **In person**: Any local New Jersey Division of Family Development office - **Phone**: 1-800-792-9773 New Jersey has up to **30 days** to process your application — or **7 days** if you qualify for expedited SNAP (very low income or resources). Benefits are backdated to your application date. Things can shift quickly. I’ll update this page when anything changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What to Do If Your New Jersey SNAP Application Is Denied Denials are common and often appealable. The most frequent reasons are income slightly over the stated limit, missing documentation, and work requirement issues — all of which can be addressed. **Step 1**: Read your denial notice carefully. New Jersey is required to explain the specific reason in writing. **Step 2**: Gather documentation that addresses the reason — recent pay stubs, rent receipts, proof of work activities, or a letter from your employer if hours changed. **Step 3**: Request a fair hearing within **90 days** of your denial. You can request one online at [myNJhelps Benefits Portal](https://www.mynjhelps.gov), in person at your local New Jersey Division of Family Development office, or by calling **1-800-792-9773**. **Step 4**: While your appeal is pending, you can continue receiving benefits if you were previously approved — request continued benefits when you file your hearing request. --- ## What to Watch: Potential SNAP Changes Ahead **State cost-sharing (FY2027–2028)**: Starting in FY2027, New Jersey will begin paying a share of SNAP benefit costs — a first for all states. The percentage depends on New Jersey’s payment error rate. If cost pressure builds, expect tighter eligibility administration at the state level. **Work requirement enforcement**: Federal guidance on the expanded age 55–64 rules is still evolving. States are implementing these in phases — if you’re in the newly covered age range, check with your caseworker. **BBCE at risk**: New Jersey’s 185% FPL income limit narrowly survived the OBBB — earlier versions of the legislation would have eliminated it. If BBCE is eliminated in future legislation, the income limit for a family of 4 would drop from $4,810/month to $3,380/month. **FY2027 COLA adjustment**: Benefits update October 1. I’ll post FY2027 amounts here when USDA releases them (typically late summer 2026). Things can shift quickly — [Subscribe or follow us ↗](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates. --- ## Where Can You Use Your New Jersey EBT Card? **In stores**: Any USDA-authorized retailer — including Walmart, Stop & Shop, ShopRite, ALDI, Acme Markets, Wegmans, and most independent grocery stores. Look for the EBT/SNAP sign at checkout. **Online**: New Jersey SNAP recipients can shop online through **Amazon Fresh** and **Walmart Grocery** — select SNAP/EBT as your payment method at checkout. Delivery fees are not covered by SNAP (only the groceries themselves). **Farmers markets**: Many New Jersey farmers markets accept EBT. Some participate in the Double Up Food Bucks program, which matches SNAP dollars on locally-grown produce. **What SNAP does NOT cover**: Alcohol, tobacco, vitamins/supplements, hot prepared foods, fast food, pet food, household supplies, or hygiene products. ## Other Benefits If You Receive New Jersey SNAP SNAP often unlocks access to other programs: - **Medicaid / CHIP**: Receiving SNAP can streamline Medicaid enrollment for adults and children. Apply through [myNJhelps Benefits Portal](https://www.mynjhelps.gov). - **LIHEAP**: Low Income Home Energy Assistance helps with utility bills. Contact your local community action agency or call 2-1-1. - **WIC**: Nutrition support for pregnant women, new mothers, and children under 5. Separate application through your state health department. - **Summer EBT (SUN Bucks)**: Extra food benefits for school-age children during summer months. Check with your state for 2026 enrollment. - **Free/reduced school meals**: SNAP households automatically qualify. Register through your child’s school district. For a full overview of federal SNAP amounts and recent cuts, see the [2026 SNAP benefits guide](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). See also: [New Jersey unemployment benefit amounts and eligibility rules](https://savingtoinvest.com/new-jersey-nj-division-of-unemployment-insurance-600-fpuc-and-pua/). --- ## New Jersey SNAP: How Benefits Have Changed (2023–2026) PeriodMax Benefit (Family of 4)Key DevelopmentFY2023 (Oct 2022 – Sep 2023)$939/monthPandemic Emergency Allotments ended — biggest single drop since the pandemicFY2024 (Oct 2023 – Sep 2024)$973/month~3.7% COLA increase; first full year post-pandemicFY2025 (Oct 2024 – Sep 2025)$975/monthMinimal ~0.2% increase; OBBB signed into lawFY2026 (Oct 2025 – Sep 2026)$994/month~2% increase; expanded work requirements take effect The end of Emergency Allotments in early 2023 was the biggest disruption in recent memory — some households that had received the maximum saw benefits drop to $23/month. FY2026 numbers are all standard formula, no pandemic additions. Frequently Asked Questions QHow much is SNAP in New Jersey in 2026? AThe maximum monthly SNAP benefit in New Jersey (NJ) for FY2026 is $298 for a single person, $546 for 2 people, $785 for 3 people, $994 for a family of 4, and $1,183 for 5 people. Most households receive less than the maximum based on net income after deductions. QWhen does SNAP deposit to my New Jersey EBT card? ABenefits load 1st–5th. Check your approval letter or myNJhelps Benefits Portal for your exact deposit date. QWhat are the income limits for New Jersey SNAP in 2026? ANew Jersey uses a gross income limit of 185% FPL — approximately $2,322/month for a single person or $4,810/month for a family of four. Net income (after deductions) must be at or below 100% FPL. QHow do I apply for SNAP in New Jersey? AApply online at https://www.mynjhelps.gov, in person at a local New Jersey Division of Family Development (DFD) office, or by calling 1-800-792-9773. Processing takes up to 30 days, or 7 days if you qualify for expedited benefits. QWhat can I buy with my New Jersey EBT card? ASNAP covers groceries including produce, meat, dairy, bread, cereals, and packaged foods. You can shop in-store at most major grocery chains and online through Amazon Fresh and Walmart Grocery. SNAP does not cover alcohol, tobacco, hot prepared foods, vitamins, or non-food household items. QWhat do I do if my New Jersey SNAP application is denied? ARequest a fair hearing within 90 days of your denial notice. Apply online at https://www.mynjhelps.gov, in person at a local office, or by calling 1-800-792-9773. The agency must explain the specific reason for denial — gather documentation addressing that reason before your hearing. QDid SNAP benefits change in 2026? AYes. The One Big Beautiful Bill (OBBB) expanded work requirements to include adults aged 55–64 and parents of children over 14. It cuts federal SNAP funding by $186 billion over 10 years and shifts some benefit costs to states starting in 2028. QCan I use my New Jersey EBT card at Walmart or Amazon? AYes to both. Walmart accepts New Jersey EBT in-store and online at walmart.com. Amazon Fresh also accepts SNAP/EBT online — select it as your payment method at checkout. Delivery fees are not covered, only eligible food items. **Categories:** Taxes and Retirement --- ### [New Hampshire SNAP Benefits: 2027 Outlook, Current 2026 Amounts Up to $994/Month](https://savingtoinvest.com/new-hampshire-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) **Published:** June 22, 2026 **Author:** Andy **Content:** ### Key Takeaways - FY2026 max SNAP benefit: $298/month for 1 person, $994/month for a family of 4 - Benefits load on your New Hampshire EBT Card 5th (all recipients) - The OBBB expanded work requirements to adults 55–64 and parents of teens — if you were exempt before, check whether you still are - New Hampshire uses BBCE at 200% FPL — more households qualify than in standard states - Apply or recertify at NH EASY Benefits Portal or call 1-800-852-3345 New Hampshire benefits go out on the New Hampshire EBT Card 5th (all recipients), and New Hampshire uses Broad-Based Categorical Eligibility at 200% of the poverty line, so more households qualify here than in states that stick to the federal floor. The max for a family of four in fiscal year 2026 is $994 a month, up from $975 last year. The open question now is what USDA sets for FY2027, expected in late summer. But 2026 is a more complicated year than most for SNAP. The One Big Beautiful Bill (OBBB) made some of the biggest cuts to the program in its history — and some New Hampshire residents who qualified last year may not qualify now. Here’s what changed, what you can expect to receive, and what to do if you’re denied. Covered in this Article: [Toggle](#) - [2026 SNAP Benefit Amounts in New Hampshire](#2026_SNAP_Benefit_Amounts_in_New_Hampshire) - [When Does SNAP Deposit to Your New Hampshire EBT Card?](#When_Does_SNAP_Deposit_to_Your_New_Hampshire_EBT_Card) - [What’s Changed in 2026: OBBB Work Requirements](#Whats_Changed_in_2026_OBBB_Work_Requirements) - [How to Qualify for New Hampshire SNAP in 2026](#How_to_Qualify_for_New_Hampshire_SNAP_in_2026) - [How to Apply](#How_to_Apply) - [What to Do If Your New Hampshire SNAP Application Is Denied](#What_to_Do_If_Your_New_Hampshire_SNAP_Application_Is_Denied) - [What to Watch: Potential SNAP Changes Ahead](#What_to_Watch_Potential_SNAP_Changes_Ahead) - [Where Can You Use Your New Hampshire EBT Card?](#Where_Can_You_Use_Your_New_Hampshire_EBT_Card) - [Other Benefits If You Receive New Hampshire SNAP](#Other_Benefits_If_You_Receive_New_Hampshire_SNAP) - [New Hampshire SNAP: How Benefits Have Changed (2023–2026)](#New_Hampshire_SNAP_How_Benefits_Have_Changed_2023%E2%80%932026) ## 2026 SNAP Benefit Amounts in New Hampshire New Hampshire uses the standard federal SNAP benefit schedule. Maximum monthly allotments for FY2026 (October 1, 2025 – September 30, 2026): Household SizeMax Monthly BenefitGross Income Limit (200% FPL)Net Income Limit (100% FPL)1 person$298$2,510/mo$1,255/mo2 people$546$3,406/mo$1,703/mo3 people$785$4,304/mo$2,152/mo4 people$994$5,200/mo$2,600/mo5 people$1,183$6,098/mo$3,049/mo6 people$1,421$6,994/mo$3,497/mo7 people$1,571$7,890/mo$3,945/mo8+ people$1,791+—— **New Hampshire (NH) uses BBCE at 200% FPL** — significantly more generous than the 130% federal floor. A family of four can qualify with gross income up to **$5,200/month**, compared to just $3,380/month in the most restrictive states. Most households receive less than the maximum. Your actual benefit depends on net income after deductions (rent, utilities, child care, medical expenses for elderly or disabled members). ### How Much Would a Family of 4 Actually Receive in New Hampshire? Here are two realistic examples to show the range: **Scenario A — Lower-income family** A family of 4 with gross monthly income of **$1,500** (one parent working part-time): - Gross income: $1,500 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$300 - Net income: $983 - 30% of net income: $295 - **Monthly SNAP benefit: $994 − $295 = $699** **Scenario B — Working family (moderate income)** A family of 4 with gross monthly income of **$3,200**: - Gross income: $3,200 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$640 - Net income: $2,343 - 30% of net income: $703 - **Monthly SNAP benefit: $994 − $703 = $291** The 20% earned income deduction rewards working households. Additional deductions for excess shelter costs, child care, or medical expenses (elderly/disabled) can increase your benefit further. ## When Does SNAP Deposit to Your New Hampshire EBT Card? New Hampshire (NH) distributes SNAP benefits on a **fixed date** — benefits load on the **5th (all recipients)** for all recipients. Your benefit date is on your approval letter or at [NH EASY Benefits Portal](https://nheasy.nh.gov). TANF cash benefits (if applicable) follow a separate deposit schedule. ## What’s Changed in 2026: OBBB Work Requirements The OBBB made several significant changes that took effect in late 2025 and early 2026: **Expanded work requirements**: Adults aged **55–64** who are able to work are now subject to SNAP work requirements for the first time. Previously the cutoff was 49. Parents whose youngest child is **over 14** are also now subject to work rules. **20 hours per week or 80 hours per month** — that’s the threshold for Able-Bodied Adults Without Dependents (ABAWDs) aged 18–64. Work, job training, or approved volunteer activity all count. Fail to meet the requirement and benefits are limited to **3 months in any 36-month period**. **State cost-sharing starting in 2028**: States will begin paying a share of benefit costs based on their SNAP payment error rate. This is new territory for all state budgets. **$186 billion in total federal SNAP cuts** over the next decade. If you were receiving SNAP in 2024 and haven’t recertified recently, check your current eligibility — the rules have shifted. ## How to Qualify for New Hampshire SNAP in 2026 **Income**: Gross income must be at or below 200% FPL (see table above). Net income (after deductions) must be at or below 100% FPL. **Residency**: Must be a New Hampshire resident. **Citizenship**: U.S. citizens and certain lawfully present immigrants qualify. Undocumented individuals are not eligible for federal SNAP benefits. **Work requirements**: Most able-bodied adults 18–64 must register for work and accept suitable employment. ABAWDs must meet the 80-hour/month work, training, or volunteer threshold. New in 2026: adults 55–64 are now included. ## How to Apply - **Online**: [NH EASY Benefits Portal](https://nheasy.nh.gov) — fastest option, available 24/7 - **In person**: Any local New Hampshire Division of Family Assistance office - **Phone**: 1-800-852-3345 New Hampshire has up to **30 days** to process your application — or **7 days** if you qualify for expedited SNAP (very low income or resources). Benefits are backdated to your application date. Things can shift quickly. I’ll update this page when anything changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What to Do If Your New Hampshire SNAP Application Is Denied Denials are common and often appealable. The most frequent reasons are income slightly over the stated limit, missing documentation, and work requirement issues — all of which can be addressed. **Step 1**: Read your denial notice carefully. New Hampshire is required to explain the specific reason in writing. **Step 2**: Gather documentation that addresses the reason — recent pay stubs, rent receipts, proof of work activities, or a letter from your employer if hours changed. **Step 3**: Request a fair hearing within **90 days** of your denial. You can request one online at [NH EASY Benefits Portal](https://nheasy.nh.gov), in person at your local New Hampshire Division of Family Assistance office, or by calling **1-800-852-3345**. **Step 4**: While your appeal is pending, you can continue receiving benefits if you were previously approved — request continued benefits when you file your hearing request. --- ## What to Watch: Potential SNAP Changes Ahead **State cost-sharing (FY2027–2028)**: Starting in FY2027, New Hampshire will begin paying a share of SNAP benefit costs — a first for all states. The percentage depends on New Hampshire’s payment error rate. If cost pressure builds, expect tighter eligibility administration at the state level. **Work requirement enforcement**: Federal guidance on the expanded age 55–64 rules is still evolving. States are implementing these in phases — if you’re in the newly covered age range, check with your caseworker. **BBCE at risk**: New Hampshire’s 200% FPL income limit narrowly survived the OBBB — earlier versions of the legislation would have eliminated it. If BBCE is eliminated in future legislation, the income limit for a family of 4 would drop from $5,200/month to $3,380/month. **FY2027 COLA adjustment**: Benefits update October 1. I’ll post FY2027 amounts here when USDA releases them (typically late summer 2026). Things can shift quickly — [Subscribe or follow us ↗](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates. --- ## Where Can You Use Your New Hampshire EBT Card? **In stores**: Any USDA-authorized retailer — including Walmart, Hannaford, Market Basket, Shaw’s, ALDI, and most independent grocery stores. Look for the EBT/SNAP sign at checkout. **Online**: New Hampshire SNAP recipients can shop online through **Amazon Fresh** and **Walmart Grocery** — select SNAP/EBT as your payment method at checkout. Delivery fees are not covered by SNAP (only the groceries themselves). **Farmers markets**: Many New Hampshire farmers markets accept EBT. Some participate in the Double Up Food Bucks program, which matches SNAP dollars on locally-grown produce. **What SNAP does NOT cover**: Alcohol, tobacco, vitamins/supplements, hot prepared foods, fast food, pet food, household supplies, or hygiene products. ## Other Benefits If You Receive New Hampshire SNAP SNAP often unlocks access to other programs: - **Medicaid / CHIP**: Receiving SNAP can streamline Medicaid enrollment for adults and children. Apply through [NH EASY Benefits Portal](https://nheasy.nh.gov). - **LIHEAP**: Low Income Home Energy Assistance helps with utility bills. Contact your local community action agency or call 2-1-1. - **WIC**: Nutrition support for pregnant women, new mothers, and children under 5. Separate application through your state health department. - **Summer EBT (SUN Bucks)**: Extra food benefits for school-age children during summer months. Check with your state for 2026 enrollment. - **Free/reduced school meals**: SNAP households automatically qualify. Register through your child’s school district. For a full overview of federal SNAP amounts and recent cuts, see the [2026 SNAP benefits guide](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). See also: [New Hampshire unemployment benefit amounts and eligibility rules](https://savingtoinvest.com/new-hampshire-unemployment-benefits/). --- ## New Hampshire SNAP: How Benefits Have Changed (2023–2026) PeriodMax Benefit (Family of 4)Key DevelopmentFY2023 (Oct 2022 – Sep 2023)$939/monthPandemic Emergency Allotments ended — biggest single drop since the pandemicFY2024 (Oct 2023 – Sep 2024)$973/month~3.7% COLA increase; first full year post-pandemicFY2025 (Oct 2024 – Sep 2025)$975/monthMinimal ~0.2% increase; OBBB signed into lawFY2026 (Oct 2025 – Sep 2026)$994/month~2% increase; expanded work requirements take effect The end of Emergency Allotments in early 2023 was the biggest disruption in recent memory — some households that had received the maximum saw benefits drop to $23/month. FY2026 numbers are all standard formula, no pandemic additions. Frequently Asked Questions QHow much is SNAP in New Hampshire in 2026? AThe maximum monthly SNAP benefit in New Hampshire (NH) for FY2026 is $298 for a single person, $546 for 2 people, $785 for 3 people, $994 for a family of 4, and $1,183 for 5 people. Most households receive less than the maximum based on net income after deductions. QWhen does SNAP deposit to my New Hampshire EBT card? ABenefits load 5th (all recipients). Check your approval letter or NH EASY Benefits Portal for your exact deposit date. QWhat are the income limits for New Hampshire SNAP in 2026? ANew Hampshire uses a gross income limit of 200% FPL — approximately $2,510/month for a single person or $5,200/month for a family of four. Net income (after deductions) must be at or below 100% FPL. QHow do I apply for SNAP in New Hampshire? AApply online at https://nheasy.nh.gov, in person at a local New Hampshire Division of Family Assistance (DFA) office, or by calling 1-800-852-3345. Processing takes up to 30 days, or 7 days if you qualify for expedited benefits. QWhat can I buy with my New Hampshire EBT card? ASNAP covers groceries including produce, meat, dairy, bread, cereals, and packaged foods. You can shop in-store at most major grocery chains and online through Amazon Fresh and Walmart Grocery. SNAP does not cover alcohol, tobacco, hot prepared foods, vitamins, or non-food household items. QWhat do I do if my New Hampshire SNAP application is denied? ARequest a fair hearing within 90 days of your denial notice. Apply online at https://nheasy.nh.gov, in person at a local office, or by calling 1-800-852-3345. The agency must explain the specific reason for denial — gather documentation addressing that reason before your hearing. QDid SNAP benefits change in 2026? AYes. The One Big Beautiful Bill (OBBB) expanded work requirements to include adults aged 55–64 and parents of children over 14. It cuts federal SNAP funding by $186 billion over 10 years and shifts some benefit costs to states starting in 2028. QCan I use my New Hampshire EBT card at Walmart or Amazon? AYes to both. Walmart accepts New Hampshire EBT in-store and online at walmart.com. Amazon Fresh also accepts SNAP/EBT online — select it as your payment method at checkout. Delivery fees are not covered, only eligible food items. **Categories:** Taxes and Retirement --- ### [Nevada SNAP Benefits: 2027 Outlook, Current 2026 Amounts Up to $994/Month](https://savingtoinvest.com/nevada-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) **Published:** June 22, 2026 **Author:** Andy **Content:** ### Key Takeaways - FY2026 max SNAP benefit: $298/month for 1 person, $994/month for a family of 4 - Benefits load on your Nevada EBT Card 1st–10th - The OBBB expanded work requirements to adults 55–64 and parents of teens — if you were exempt before, check whether you still are - Nevada uses BBCE at 200% FPL — more households qualify than in standard states - Apply or recertify at Nevada DWSS Benefits or call 702-486-1646 (Clark Co.) or 775-684-0700 (Washoe) If you’re applying for or renewing SNAP in Nevada, benefits load onto the Nevada EBT Card 1st–10th through Nevada DWSS Benefits. The fiscal year 2026 maximum for a family of four is $994 a month, up from $975 last year. The open question now is what USDA sets for FY2027, expected in late summer. But 2026 is a more complicated year than most for SNAP. The One Big Beautiful Bill (OBBB) made some of the biggest cuts to the program in its history — and some Nevada residents who qualified last year may not qualify now. Here’s what changed, what you can expect to receive, and what to do if you’re denied. Covered in this Article: [Toggle](#) - [2026 SNAP Benefit Amounts in Nevada](#2026_SNAP_Benefit_Amounts_in_Nevada) - [When Does SNAP Deposit to Your Nevada EBT Card?](#When_Does_SNAP_Deposit_to_Your_Nevada_EBT_Card) - [What’s Changed in 2026: OBBB Work Requirements](#Whats_Changed_in_2026_OBBB_Work_Requirements) - [How to Qualify for Nevada SNAP in 2026](#How_to_Qualify_for_Nevada_SNAP_in_2026) - [How to Apply](#How_to_Apply) - [What to Do If Your Nevada SNAP Application Is Denied](#What_to_Do_If_Your_Nevada_SNAP_Application_Is_Denied) - [What to Watch: Potential SNAP Changes Ahead](#What_to_Watch_Potential_SNAP_Changes_Ahead) - [Where Can You Use Your Nevada EBT Card?](#Where_Can_You_Use_Your_Nevada_EBT_Card) - [Other Benefits If You Receive Nevada SNAP](#Other_Benefits_If_You_Receive_Nevada_SNAP) - [Nevada SNAP: How Benefits Have Changed (2023–2026)](#Nevada_SNAP_How_Benefits_Have_Changed_2023%E2%80%932026) ## 2026 SNAP Benefit Amounts in Nevada Nevada uses the standard federal SNAP benefit schedule. Maximum monthly allotments for FY2026 (October 1, 2025 – September 30, 2026): Household SizeMax Monthly BenefitGross Income Limit (200% FPL)Net Income Limit (100% FPL)1 person$298$2,510/mo$1,255/mo2 people$546$3,406/mo$1,703/mo3 people$785$4,304/mo$2,152/mo4 people$994$5,200/mo$2,600/mo5 people$1,183$6,098/mo$3,049/mo6 people$1,421$6,994/mo$3,497/mo7 people$1,571$7,890/mo$3,945/mo8+ people$1,791+—— **Nevada (NV) uses BBCE at 200% FPL** — significantly more generous than the 130% federal floor. A family of four can qualify with gross income up to **$5,200/month**, compared to just $3,380/month in the most restrictive states. Most households receive less than the maximum. Your actual benefit depends on net income after deductions (rent, utilities, child care, medical expenses for elderly or disabled members). ### How Much Would a Family of 4 Actually Receive in Nevada? Here are two realistic examples to show the range: **Scenario A — Lower-income family** A family of 4 with gross monthly income of **$1,500** (one parent working part-time): - Gross income: $1,500 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$300 - Net income: $983 - 30% of net income: $295 - **Monthly SNAP benefit: $994 − $295 = $699** **Scenario B — Working family (moderate income)** A family of 4 with gross monthly income of **$3,200**: - Gross income: $3,200 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$640 - Net income: $2,343 - 30% of net income: $703 - **Monthly SNAP benefit: $994 − $703 = $291** The 20% earned income deduction rewards working households. Additional deductions for excess shelter costs, child care, or medical expenses (elderly/disabled) can increase your benefit further. ## When Does SNAP Deposit to Your Nevada EBT Card? Nevada (NV) distributes SNAP benefits based on the **last digit of your case number**. Benefits load between the 1st–10th each month: Case # Last DigitDeposit Date11st22nd33rd44th55th66th77th88th99th010th Your case number is on your approval letter or available through [Nevada DWSS Benefits](https://dwss.nv.gov). Call **702-486-1646 (Clark Co.) or 775-684-0700 (Washoe)** if you’re unsure of your deposit date — it stays the same each month once you’re approved. TANF cash benefits (if applicable) follow a separate deposit schedule. ## What’s Changed in 2026: OBBB Work Requirements The OBBB made several significant changes that took effect in late 2025 and early 2026: **Expanded work requirements**: Adults aged **55–64** who are able to work are now subject to SNAP work requirements for the first time. Previously the cutoff was 49. Parents whose youngest child is **over 14** are also now subject to work rules. **20 hours per week or 80 hours per month** — that’s the threshold for Able-Bodied Adults Without Dependents (ABAWDs) aged 18–64. Work, job training, or approved volunteer activity all count. Fail to meet the requirement and benefits are limited to **3 months in any 36-month period**. **State cost-sharing starting in 2028**: States will begin paying a share of benefit costs based on their SNAP payment error rate. This is new territory for all state budgets. **$186 billion in total federal SNAP cuts** over the next decade. If you were receiving SNAP in 2024 and haven’t recertified recently, check your current eligibility — the rules have shifted. ## How to Qualify for Nevada SNAP in 2026 **Income**: Gross income must be at or below 200% FPL (see table above). Net income (after deductions) must be at or below 100% FPL. **Residency**: Must be a Nevada resident. **Citizenship**: U.S. citizens and certain lawfully present immigrants qualify. Undocumented individuals are not eligible for federal SNAP benefits. **Work requirements**: Most able-bodied adults 18–64 must register for work and accept suitable employment. ABAWDs must meet the 80-hour/month work, training, or volunteer threshold. New in 2026: adults 55–64 are now included. ## How to Apply - **Online**: [Nevada DWSS Benefits](https://dwss.nv.gov) — fastest option, available 24/7 - **In person**: Any local Nevada Division of Welfare and Supportive Services office - **Phone**: 702-486-1646 (Clark Co.) or 775-684-0700 (Washoe) Nevada has up to **30 days** to process your application — or **7 days** if you qualify for expedited SNAP (very low income or resources). Benefits are backdated to your application date. Things can shift quickly. I’ll update this page when anything changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What to Do If Your Nevada SNAP Application Is Denied Denials are common and often appealable. The most frequent reasons are income slightly over the stated limit, missing documentation, and work requirement issues — all of which can be addressed. **Step 1**: Read your denial notice carefully. Nevada is required to explain the specific reason in writing. **Step 2**: Gather documentation that addresses the reason — recent pay stubs, rent receipts, proof of work activities, or a letter from your employer if hours changed. **Step 3**: Request a fair hearing within **90 days** of your denial. You can request one online at [Nevada DWSS Benefits](https://dwss.nv.gov), in person at your local Nevada Division of Welfare and Supportive Services office, or by calling **702-486-1646 (Clark Co.) or 775-684-0700 (Washoe)**. **Step 4**: While your appeal is pending, you can continue receiving benefits if you were previously approved — request continued benefits when you file your hearing request. --- ## What to Watch: Potential SNAP Changes Ahead **State cost-sharing (FY2027–2028)**: Starting in FY2027, Nevada will begin paying a share of SNAP benefit costs — a first for all states. The percentage depends on Nevada’s payment error rate. If cost pressure builds, expect tighter eligibility administration at the state level. **Work requirement enforcement**: Federal guidance on the expanded age 55–64 rules is still evolving. States are implementing these in phases — if you’re in the newly covered age range, check with your caseworker. **BBCE at risk**: Nevada’s 200% FPL income limit narrowly survived the OBBB — earlier versions of the legislation would have eliminated it. If BBCE is eliminated in future legislation, the income limit for a family of 4 would drop from $5,200/month to $3,380/month. **FY2027 COLA adjustment**: Benefits update October 1. I’ll post FY2027 amounts here when USDA releases them (typically late summer 2026). Things can shift quickly — [Subscribe or follow us ↗](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates. --- ## Where Can You Use Your Nevada EBT Card? **In stores**: Any USDA-authorized retailer — including Walmart, Smith’s (Kroger), Albertsons, Raley’s, WinCo Foods, ALDI, and most independent grocery stores. Look for the EBT/SNAP sign at checkout. **Online**: Nevada SNAP recipients can shop online through **Amazon Fresh** and **Walmart Grocery** — select SNAP/EBT as your payment method at checkout. Delivery fees are not covered by SNAP (only the groceries themselves). **Farmers markets**: Many Nevada farmers markets accept EBT. Some participate in the Double Up Food Bucks program, which matches SNAP dollars on locally-grown produce. **What SNAP does NOT cover**: Alcohol, tobacco, vitamins/supplements, hot prepared foods, fast food, pet food, household supplies, or hygiene products. ## Other Benefits If You Receive Nevada SNAP SNAP often unlocks access to other programs: - **Medicaid / CHIP**: Receiving SNAP can streamline Medicaid enrollment for adults and children. Apply through [Nevada DWSS Benefits](https://dwss.nv.gov). - **LIHEAP**: Low Income Home Energy Assistance helps with utility bills. Contact your local community action agency or call 2-1-1. - **WIC**: Nutrition support for pregnant women, new mothers, and children under 5. Separate application through your state health department. - **Summer EBT (SUN Bucks)**: Extra food benefits for school-age children during summer months. Check with your state for 2026 enrollment. - **Free/reduced school meals**: SNAP households automatically qualify. Register through your child’s school district. For a full overview of federal SNAP amounts and recent cuts, see the [2026 SNAP benefits guide](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). See also: [Nevada unemployment benefit amounts and eligibility rules](https://savingtoinvest.com/nevada-nv-detr-unemployment-benefits-news-and-updates-on-300-lwa-pua-peuc-and-600-fpuc/). --- ## Nevada SNAP: How Benefits Have Changed (2023–2026) PeriodMax Benefit (Family of 4)Key DevelopmentFY2023 (Oct 2022 – Sep 2023)$939/monthPandemic Emergency Allotments ended — biggest single drop since the pandemicFY2024 (Oct 2023 – Sep 2024)$973/month~3.7% COLA increase; first full year post-pandemicFY2025 (Oct 2024 – Sep 2025)$975/monthMinimal ~0.2% increase; OBBB signed into lawFY2026 (Oct 2025 – Sep 2026)$994/month~2% increase; expanded work requirements take effect The end of Emergency Allotments in early 2023 was the biggest disruption in recent memory — some households that had received the maximum saw benefits drop to $23/month. FY2026 numbers are all standard formula, no pandemic additions. Frequently Asked Questions QHow much is SNAP in Nevada in 2026? AThe maximum monthly SNAP benefit in Nevada (NV) for FY2026 is $298 for a single person, $546 for 2 people, $785 for 3 people, $994 for a family of 4, and $1,183 for 5 people. Most households receive less than the maximum based on net income after deductions. QWhen does SNAP deposit to my Nevada EBT card? ABenefits load 1st–10th. Check your approval letter or Nevada DWSS Benefits for your exact deposit date. QWhat are the income limits for Nevada SNAP in 2026? ANevada uses a gross income limit of 200% FPL — approximately $2,510/month for a single person or $5,200/month for a family of four. Net income (after deductions) must be at or below 100% FPL. QHow do I apply for SNAP in Nevada? AApply online at https://dwss.nv.gov, in person at a local Nevada Division of Welfare and Supportive Services (DWSS) office, or by calling 702-486-1646 (Clark Co.) or 775-684-0700 (Washoe). Processing takes up to 30 days, or 7 days if you qualify for expedited benefits. QWhat can I buy with my Nevada EBT card? ASNAP covers groceries including produce, meat, dairy, bread, cereals, and packaged foods. You can shop in-store at most major grocery chains and online through Amazon Fresh and Walmart Grocery. SNAP does not cover alcohol, tobacco, hot prepared foods, vitamins, or non-food household items. QWhat do I do if my Nevada SNAP application is denied? ARequest a fair hearing within 90 days of your denial notice. Apply online at https://dwss.nv.gov, in person at a local office, or by calling 702-486-1646 (Clark Co.) or 775-684-0700 (Washoe). The agency must explain the specific reason for denial — gather documentation addressing that reason before your hearing. QDid SNAP benefits change in 2026? AYes. The One Big Beautiful Bill (OBBB) expanded work requirements to include adults aged 55–64 and parents of children over 14. It cuts federal SNAP funding by $186 billion over 10 years and shifts some benefit costs to states starting in 2028. QCan I use my Nevada EBT card at Walmart or Amazon? AYes to both. Walmart accepts Nevada EBT in-store and online at walmart.com. Amazon Fresh also accepts SNAP/EBT online — select it as your payment method at checkout. Delivery fees are not covered, only eligible food items. **Categories:** Taxes and Retirement --- ### [Nebraska SNAP Benefits: 2027 Outlook, Current 2026 Amounts Up to $994/Month](https://savingtoinvest.com/nebraska-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) **Published:** June 22, 2026 **Author:** Andy **Content:** ### Key Takeaways - FY2026 max SNAP benefit: $298/month for 1 person, $994/month for a family of 4 - Benefits load on your Nebraska EBT Card 1st–5th - The OBBB expanded work requirements to adults 55–64 and parents of teens — if you were exempt before, check whether you still are - Nebraska uses BBCE at 165% FPL — more households qualify than in standard states - Apply or recertify at ACCESSNebraska or call 1-800-383-4278 Nebraska uses Broad-Based Categorical Eligibility at 165% of the poverty line, so more households qualify here than in states that stick to the federal floor. Either way, the fiscal year 2026 maximum benefit is the same nationwide: $994 a month for a family of four, up from $975 last year. The open question now is what USDA sets for FY2027, expected in late summer. But 2026 is a more complicated year than most for SNAP. The One Big Beautiful Bill (OBBB) made some of the biggest cuts to the program in its history — and some Nebraska residents who qualified last year may not qualify now. Here’s what changed, what you can expect to receive, and what to do if you’re denied. Covered in this Article: [Toggle](#) - [2026 SNAP Benefit Amounts in Nebraska](#2026_SNAP_Benefit_Amounts_in_Nebraska) - [When Does SNAP Deposit to Your Nebraska EBT Card?](#When_Does_SNAP_Deposit_to_Your_Nebraska_EBT_Card) - [What’s Changed in 2026: OBBB Work Requirements](#Whats_Changed_in_2026_OBBB_Work_Requirements) - [How to Qualify for Nebraska SNAP in 2026](#How_to_Qualify_for_Nebraska_SNAP_in_2026) - [How to Apply](#How_to_Apply) - [What to Do If Your Nebraska SNAP Application Is Denied](#What_to_Do_If_Your_Nebraska_SNAP_Application_Is_Denied) - [What to Watch: Potential SNAP Changes Ahead](#What_to_Watch_Potential_SNAP_Changes_Ahead) - [Where Can You Use Your Nebraska EBT Card?](#Where_Can_You_Use_Your_Nebraska_EBT_Card) - [Other Benefits If You Receive Nebraska SNAP](#Other_Benefits_If_You_Receive_Nebraska_SNAP) - [Nebraska SNAP: How Benefits Have Changed (2023–2026)](#Nebraska_SNAP_How_Benefits_Have_Changed_2023%E2%80%932026) ## 2026 SNAP Benefit Amounts in Nebraska Nebraska uses the standard federal SNAP benefit schedule. Maximum monthly allotments for FY2026 (October 1, 2025 – September 30, 2026): Household SizeMax Monthly BenefitGross Income Limit (165% FPL)Net Income Limit (100% FPL)1 person$298$2,071/mo$1,255/mo2 people$546$2,810/mo$1,703/mo3 people$785$3,551/mo$2,152/mo4 people$994$4,290/mo$2,600/mo5 people$1,183$5,031/mo$3,049/mo6 people$1,421$5,770/mo$3,497/mo7 people$1,571$6,509/mo$3,945/mo8+ people$1,791+—— **Nebraska (NE) uses BBCE at 165% FPL**, moderately above the federal 130% floor. A family of four can qualify with gross income up to **$4,290/month** — compared to only $3,380/month in states without BBCE. Most households receive less than the maximum. Your actual benefit depends on net income after deductions (rent, utilities, child care, medical expenses for elderly or disabled members). ### How Much Would a Family of 4 Actually Receive in Nebraska? Here are two realistic examples to show the range: **Scenario A — Lower-income family** A family of 4 with gross monthly income of **$1,500** (one parent working part-time): - Gross income: $1,500 ✓ (within $4,290/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$300 - Net income: $983 - 30% of net income: $295 - **Monthly SNAP benefit: $994 − $295 = $699** **Scenario B — Working family (moderate income)** A family of 4 with gross monthly income of **$2,500**: - Gross income: $2,500 ✓ (within $4,290/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$500 - Net income: $1,783 - 30% of net income: $535 - **Monthly SNAP benefit: $994 − $535 = $459** The 20% earned income deduction rewards working households. Additional deductions for excess shelter costs, child care, or medical expenses (elderly/disabled) can increase your benefit further. ## When Does SNAP Deposit to Your Nebraska EBT Card? Nebraska (NE) distributes SNAP benefits based on the **last digit of your case number**. Benefits load between the 1st–5th each month: Case # Last DigitDeposit Date11st21st32nd42nd53rd63rd74th84th95th05th Your case number is on your approval letter or available through [ACCESSNebraska](https://accessnebraska.ne.gov). Call **1-800-383-4278** if you’re unsure of your deposit date — it stays the same each month once you’re approved. TANF cash benefits (if applicable) follow a separate deposit schedule. ## What’s Changed in 2026: OBBB Work Requirements The OBBB made several significant changes that took effect in late 2025 and early 2026: **Expanded work requirements**: Adults aged **55–64** who are able to work are now subject to SNAP work requirements for the first time. Previously the cutoff was 49. Parents whose youngest child is **over 14** are also now subject to work rules. **20 hours per week or 80 hours per month** — that’s the threshold for Able-Bodied Adults Without Dependents (ABAWDs) aged 18–64. Work, job training, or approved volunteer activity all count. Fail to meet the requirement and benefits are limited to **3 months in any 36-month period**. **State cost-sharing starting in 2028**: States will begin paying a share of benefit costs based on their SNAP payment error rate. This is new territory for all state budgets. **$186 billion in total federal SNAP cuts** over the next decade. If you were receiving SNAP in 2024 and haven’t recertified recently, check your current eligibility — the rules have shifted. ## How to Qualify for Nebraska SNAP in 2026 **Income**: Gross income must be at or below 165% FPL (see table above). Net income (after deductions) must be at or below 100% FPL. **Residency**: Must be a Nebraska resident. **Citizenship**: U.S. citizens and certain lawfully present immigrants qualify. Undocumented individuals are not eligible for federal SNAP benefits. **Work requirements**: Most able-bodied adults 18–64 must register for work and accept suitable employment. ABAWDs must meet the 80-hour/month work, training, or volunteer threshold. New in 2026: adults 55–64 are now included. ## How to Apply - **Online**: [ACCESSNebraska](https://accessnebraska.ne.gov) — fastest option, available 24/7 - **In person**: Any local Nebraska Department of Health and Human Services office - **Phone**: 1-800-383-4278 Nebraska has up to **30 days** to process your application — or **7 days** if you qualify for expedited SNAP (very low income or resources). Benefits are backdated to your application date. Things can shift quickly. I’ll update this page when anything changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What to Do If Your Nebraska SNAP Application Is Denied Denials are common and often appealable. The most frequent reasons are income slightly over the stated limit, missing documentation, and work requirement issues — all of which can be addressed. **Step 1**: Read your denial notice carefully. Nebraska is required to explain the specific reason in writing. **Step 2**: Gather documentation that addresses the reason — recent pay stubs, rent receipts, proof of work activities, or a letter from your employer if hours changed. **Step 3**: Request a fair hearing within **90 days** of your denial. You can request one online at [ACCESSNebraska](https://accessnebraska.ne.gov), in person at your local Nebraska Department of Health and Human Services office, or by calling **1-800-383-4278**. **Step 4**: While your appeal is pending, you can continue receiving benefits if you were previously approved — request continued benefits when you file your hearing request. --- ## What to Watch: Potential SNAP Changes Ahead **State cost-sharing (FY2027–2028)**: Starting in FY2027, Nebraska will begin paying a share of SNAP benefit costs — a first for all states. The percentage depends on Nebraska’s payment error rate. If cost pressure builds, expect tighter eligibility administration at the state level. **Work requirement enforcement**: Federal guidance on the expanded age 55–64 rules is still evolving. States are implementing these in phases — if you’re in the newly covered age range, check with your caseworker. **FY2027 COLA adjustment**: Benefits update October 1. I’ll post FY2027 amounts here when USDA releases them (typically late summer 2026). Things can shift quickly — [Subscribe or follow us ↗](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates. --- ## Where Can You Use Your Nebraska EBT Card? **In stores**: Any USDA-authorized retailer — including Walmart, Hy-Vee, Baker’s (Kroger), ALDI, Super Saver, and most independent grocery stores. Look for the EBT/SNAP sign at checkout. **Online**: Nebraska SNAP recipients can shop online through **Amazon Fresh** and **Walmart Grocery** — select SNAP/EBT as your payment method at checkout. Delivery fees are not covered by SNAP (only the groceries themselves). **Farmers markets**: Many Nebraska farmers markets accept EBT. Some participate in the Double Up Food Bucks program, which matches SNAP dollars on locally-grown produce. **What SNAP does NOT cover**: Alcohol, tobacco, vitamins/supplements, hot prepared foods, fast food, pet food, household supplies, or hygiene products. ## Other Benefits If You Receive Nebraska SNAP SNAP often unlocks access to other programs: - **Medicaid / CHIP**: Receiving SNAP can streamline Medicaid enrollment for adults and children. Apply through [ACCESSNebraska](https://accessnebraska.ne.gov). - **LIHEAP**: Low Income Home Energy Assistance helps with utility bills. Contact your local community action agency or call 2-1-1. - **WIC**: Nutrition support for pregnant women, new mothers, and children under 5. Separate application through your state health department. - **Summer EBT (SUN Bucks)**: Extra food benefits for school-age children during summer months. Check with your state for 2026 enrollment. - **Free/reduced school meals**: SNAP households automatically qualify. Register through your child’s school district. For a full overview of federal SNAP amounts and recent cuts, see the [2026 SNAP benefits guide](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). See also: [Nebraska unemployment benefit amounts and eligibility rules](https://savingtoinvest.com/nebraska-unemployment-benefits/). --- ## Nebraska SNAP: How Benefits Have Changed (2023–2026) PeriodMax Benefit (Family of 4)Key DevelopmentFY2023 (Oct 2022 – Sep 2023)$939/monthPandemic Emergency Allotments ended — biggest single drop since the pandemicFY2024 (Oct 2023 – Sep 2024)$973/month~3.7% COLA increase; first full year post-pandemicFY2025 (Oct 2024 – Sep 2025)$975/monthMinimal ~0.2% increase; OBBB signed into lawFY2026 (Oct 2025 – Sep 2026)$994/month~2% increase; expanded work requirements take effect The end of Emergency Allotments in early 2023 was the biggest disruption in recent memory — some households that had received the maximum saw benefits drop to $23/month. FY2026 numbers are all standard formula, no pandemic additions. Frequently Asked Questions QHow much is SNAP in Nebraska in 2026? AThe maximum monthly SNAP benefit in Nebraska (NE) for FY2026 is $298 for a single person, $546 for 2 people, $785 for 3 people, $994 for a family of 4, and $1,183 for 5 people. Most households receive less than the maximum based on net income after deductions. QWhen does SNAP deposit to my Nebraska EBT card? ABenefits load 1st–5th. Check your approval letter or ACCESSNebraska for your exact deposit date. QWhat are the income limits for Nebraska SNAP in 2026? ANebraska uses a gross income limit of 165% FPL — approximately $2,071/month for a single person or $4,290/month for a family of four. Net income (after deductions) must be at or below 100% FPL. QHow do I apply for SNAP in Nebraska? AApply online at https://accessnebraska.ne.gov, in person at a local Nebraska Department of Health and Human Services (DHHS) office, or by calling 1-800-383-4278. Processing takes up to 30 days, or 7 days if you qualify for expedited benefits. QWhat can I buy with my Nebraska EBT card? ASNAP covers groceries including produce, meat, dairy, bread, cereals, and packaged foods. You can shop in-store at most major grocery chains and online through Amazon Fresh and Walmart Grocery. SNAP does not cover alcohol, tobacco, hot prepared foods, vitamins, or non-food household items. QWhat do I do if my Nebraska SNAP application is denied? ARequest a fair hearing within 90 days of your denial notice. Apply online at https://accessnebraska.ne.gov, in person at a local office, or by calling 1-800-383-4278. The agency must explain the specific reason for denial — gather documentation addressing that reason before your hearing. QDid SNAP benefits change in 2026? AYes. The One Big Beautiful Bill (OBBB) expanded work requirements to include adults aged 55–64 and parents of children over 14. It cuts federal SNAP funding by $186 billion over 10 years and shifts some benefit costs to states starting in 2028. QCan I use my Nebraska EBT card at Walmart or Amazon? AYes to both. Walmart accepts Nebraska EBT in-store and online at walmart.com. Amazon Fresh also accepts SNAP/EBT online — select it as your payment method at checkout. Delivery fees are not covered, only eligible food items. **Categories:** Taxes and Retirement --- ### [Montana SNAP Benefits: 2027 Outlook, Current 2026 Amounts Up to $994/Month](https://savingtoinvest.com/montana-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) **Published:** June 22, 2026 **Author:** Andy **Content:** ### Key Takeaways - FY2026 max SNAP benefit: $298/month for 1 person, $994/month for a family of 4 - Benefits load on your Montana Access Card (EBT) 2nd–6th - The OBBB expanded work requirements to adults 55–64 and parents of teens — if you were exempt before, check whether you still are - Montana uses BBCE at 200% FPL — more households qualify than in standard states - Apply or recertify at Montana DPHHS Benefits or call 406-444-5900 or 2-1-1 A family of four on SNAP in Montana can get up to $994 a month in fiscal year 2026 — up from $975 last year — deposited onto the Montana Access Card (EBT) 2nd–6th. The open question now is what USDA sets for FY2027, expected in late summer. But 2026 is a more complicated year than most for SNAP. The One Big Beautiful Bill (OBBB) made some of the biggest cuts to the program in its history — and some Montana residents who qualified last year may not qualify now. Here’s what changed, what you can expect to receive, and what to do if you’re denied. Covered in this Article: [Toggle](#) - [2026 SNAP Benefit Amounts in Montana](#2026_SNAP_Benefit_Amounts_in_Montana) - [When Does SNAP Deposit to Your Montana EBT Card?](#When_Does_SNAP_Deposit_to_Your_Montana_EBT_Card) - [What’s Changed in 2026: OBBB Work Requirements](#Whats_Changed_in_2026_OBBB_Work_Requirements) - [How to Qualify for Montana SNAP in 2026](#How_to_Qualify_for_Montana_SNAP_in_2026) - [How to Apply](#How_to_Apply) - [What to Do If Your Montana SNAP Application Is Denied](#What_to_Do_If_Your_Montana_SNAP_Application_Is_Denied) - [What to Watch: Potential SNAP Changes Ahead](#What_to_Watch_Potential_SNAP_Changes_Ahead) - [Where Can You Use Your Montana EBT Card?](#Where_Can_You_Use_Your_Montana_EBT_Card) - [Other Benefits If You Receive Montana SNAP](#Other_Benefits_If_You_Receive_Montana_SNAP) - [Montana SNAP: How Benefits Have Changed (2023–2026)](#Montana_SNAP_How_Benefits_Have_Changed_2023%E2%80%932026) ## 2026 SNAP Benefit Amounts in Montana Montana uses the standard federal SNAP benefit schedule. Maximum monthly allotments for FY2026 (October 1, 2025 – September 30, 2026): Household SizeMax Monthly BenefitGross Income Limit (200% FPL)Net Income Limit (100% FPL)1 person$298$2,510/mo$1,255/mo2 people$546$3,406/mo$1,703/mo3 people$785$4,304/mo$2,152/mo4 people$994$5,200/mo$2,600/mo5 people$1,183$6,098/mo$3,049/mo6 people$1,421$6,994/mo$3,497/mo7 people$1,571$7,890/mo$3,945/mo8+ people$1,791+—— **Montana (MT) uses BBCE at 200% FPL** — significantly more generous than the 130% federal floor. A family of four can qualify with gross income up to **$5,200/month**, compared to just $3,380/month in the most restrictive states. Most households receive less than the maximum. Your actual benefit depends on net income after deductions (rent, utilities, child care, medical expenses for elderly or disabled members). ### How Much Would a Family of 4 Actually Receive in Montana? Here are two realistic examples to show the range: **Scenario A — Lower-income family** A family of 4 with gross monthly income of **$1,500** (one parent working part-time): - Gross income: $1,500 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$300 - Net income: $983 - 30% of net income: $295 - **Monthly SNAP benefit: $994 − $295 = $699** **Scenario B — Working family (moderate income)** A family of 4 with gross monthly income of **$3,200**: - Gross income: $3,200 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$640 - Net income: $2,343 - 30% of net income: $703 - **Monthly SNAP benefit: $994 − $703 = $291** The 20% earned income deduction rewards working households. Additional deductions for excess shelter costs, child care, or medical expenses (elderly/disabled) can increase your benefit further. ## When Does SNAP Deposit to Your Montana EBT Card? Montana (MT) distributes SNAP benefits based on the **last digit of your case number**. Benefits load between the 2nd–6th each month: Case # Last DigitDeposit Date12nd22nd33rd43rd54th64th75th85th96th06th Your case number is on your approval letter or available through [Montana DPHHS Benefits](https://dphhs.mt.gov/snap). Call **406-444-5900 or 2-1-1** if you’re unsure of your deposit date — it stays the same each month once you’re approved. TANF cash benefits (if applicable) follow a separate deposit schedule. ## What’s Changed in 2026: OBBB Work Requirements The OBBB made several significant changes that took effect in late 2025 and early 2026: **Expanded work requirements**: Adults aged **55–64** who are able to work are now subject to SNAP work requirements for the first time. Previously the cutoff was 49. Parents whose youngest child is **over 14** are also now subject to work rules. **20 hours per week or 80 hours per month** — that’s the threshold for Able-Bodied Adults Without Dependents (ABAWDs) aged 18–64. Work, job training, or approved volunteer activity all count. Fail to meet the requirement and benefits are limited to **3 months in any 36-month period**. **State cost-sharing starting in 2028**: States will begin paying a share of benefit costs based on their SNAP payment error rate. This is new territory for all state budgets. **$186 billion in total federal SNAP cuts** over the next decade. If you were receiving SNAP in 2024 and haven’t recertified recently, check your current eligibility — the rules have shifted. ## How to Qualify for Montana SNAP in 2026 **Income**: Gross income must be at or below 200% FPL (see table above). Net income (after deductions) must be at or below 100% FPL. **Residency**: Must be a Montana resident. **Citizenship**: U.S. citizens and certain lawfully present immigrants qualify. Undocumented individuals are not eligible for federal SNAP benefits. **Work requirements**: Most able-bodied adults 18–64 must register for work and accept suitable employment. ABAWDs must meet the 80-hour/month work, training, or volunteer threshold. New in 2026: adults 55–64 are now included. ## How to Apply - **Online**: [Montana DPHHS Benefits](https://dphhs.mt.gov/snap) — fastest option, available 24/7 - **In person**: Any local Montana Department of Public Health and Human Services office - **Phone**: 406-444-5900 or 2-1-1 Montana has up to **30 days** to process your application — or **7 days** if you qualify for expedited SNAP (very low income or resources). Benefits are backdated to your application date. Things can shift quickly. I’ll update this page when anything changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What to Do If Your Montana SNAP Application Is Denied Denials are common and often appealable. The most frequent reasons are income slightly over the stated limit, missing documentation, and work requirement issues — all of which can be addressed. **Step 1**: Read your denial notice carefully. Montana is required to explain the specific reason in writing. **Step 2**: Gather documentation that addresses the reason — recent pay stubs, rent receipts, proof of work activities, or a letter from your employer if hours changed. **Step 3**: Request a fair hearing within **90 days** of your denial. You can request one online at [Montana DPHHS Benefits](https://dphhs.mt.gov/snap), in person at your local Montana Department of Public Health and Human Services office, or by calling **406-444-5900 or 2-1-1**. **Step 4**: While your appeal is pending, you can continue receiving benefits if you were previously approved — request continued benefits when you file your hearing request. --- ## What to Watch: Potential SNAP Changes Ahead **State cost-sharing (FY2027–2028)**: Starting in FY2027, Montana will begin paying a share of SNAP benefit costs — a first for all states. The percentage depends on Montana’s payment error rate. If cost pressure builds, expect tighter eligibility administration at the state level. **Work requirement enforcement**: Federal guidance on the expanded age 55–64 rules is still evolving. States are implementing these in phases — if you’re in the newly covered age range, check with your caseworker. **BBCE at risk**: Montana’s 200% FPL income limit narrowly survived the OBBB — earlier versions of the legislation would have eliminated it. If BBCE is eliminated in future legislation, the income limit for a family of 4 would drop from $5,200/month to $3,380/month. **FY2027 COLA adjustment**: Benefits update October 1. I’ll post FY2027 amounts here when USDA releases them (typically late summer 2026). Things can shift quickly — [Subscribe or follow us ↗](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates. --- ## Where Can You Use Your Montana EBT Card? **In stores**: Any USDA-authorized retailer — including Walmart, Albertsons, Rosauers, Town Pump, Cash & Carry, and most independent grocery stores. Look for the EBT/SNAP sign at checkout. **Online**: Montana SNAP recipients can shop online through **Amazon Fresh** and **Walmart Grocery** — select SNAP/EBT as your payment method at checkout. Delivery fees are not covered by SNAP (only the groceries themselves). **Farmers markets**: Many Montana farmers markets accept EBT. Some participate in the Double Up Food Bucks program, which matches SNAP dollars on locally-grown produce. **What SNAP does NOT cover**: Alcohol, tobacco, vitamins/supplements, hot prepared foods, fast food, pet food, household supplies, or hygiene products. ## Other Benefits If You Receive Montana SNAP SNAP often unlocks access to other programs: - **Medicaid / CHIP**: Receiving SNAP can streamline Medicaid enrollment for adults and children. Apply through [Montana DPHHS Benefits](https://dphhs.mt.gov/snap). - **LIHEAP**: Low Income Home Energy Assistance helps with utility bills. Contact your local community action agency or call 2-1-1. - **WIC**: Nutrition support for pregnant women, new mothers, and children under 5. Separate application through your state health department. - **Summer EBT (SUN Bucks)**: Extra food benefits for school-age children during summer months. Check with your state for 2026 enrollment. - **Free/reduced school meals**: SNAP households automatically qualify. Register through your child’s school district. For a full overview of federal SNAP amounts and recent cuts, see the [2026 SNAP benefits guide](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). See also: [Montana unemployment benefit amounts and eligibility rules](https://savingtoinvest.com/montana-unemployment-benefits/). --- ## Montana SNAP: How Benefits Have Changed (2023–2026) PeriodMax Benefit (Family of 4)Key DevelopmentFY2023 (Oct 2022 – Sep 2023)$939/monthPandemic Emergency Allotments ended — biggest single drop since the pandemicFY2024 (Oct 2023 – Sep 2024)$973/month~3.7% COLA increase; first full year post-pandemicFY2025 (Oct 2024 – Sep 2025)$975/monthMinimal ~0.2% increase; OBBB signed into lawFY2026 (Oct 2025 – Sep 2026)$994/month~2% increase; expanded work requirements take effect The end of Emergency Allotments in early 2023 was the biggest disruption in recent memory — some households that had received the maximum saw benefits drop to $23/month. FY2026 numbers are all standard formula, no pandemic additions. Frequently Asked Questions QHow much is SNAP in Montana in 2026? AThe maximum monthly SNAP benefit in Montana (MT) for FY2026 is $298 for a single person, $546 for 2 people, $785 for 3 people, $994 for a family of 4, and $1,183 for 5 people. Most households receive less than the maximum based on net income after deductions. QWhen does SNAP deposit to my Montana EBT card? ABenefits load 2nd–6th. Check your approval letter or Montana DPHHS Benefits for your exact deposit date. QWhat are the income limits for Montana SNAP in 2026? AMontana uses a gross income limit of 200% FPL — approximately $2,510/month for a single person or $5,200/month for a family of four. Net income (after deductions) must be at or below 100% FPL. QHow do I apply for SNAP in Montana? AApply online at https://dphhs.mt.gov/snap, in person at a local Montana Department of Public Health and Human Services (DPHHS) office, or by calling 406-444-5900 or 2-1-1. Processing takes up to 30 days, or 7 days if you qualify for expedited benefits. QWhat can I buy with my Montana EBT card? ASNAP covers groceries including produce, meat, dairy, bread, cereals, and packaged foods. You can shop in-store at most major grocery chains and online through Amazon Fresh and Walmart Grocery. SNAP does not cover alcohol, tobacco, hot prepared foods, vitamins, or non-food household items. QWhat do I do if my Montana SNAP application is denied? ARequest a fair hearing within 90 days of your denial notice. Apply online at https://dphhs.mt.gov/snap, in person at a local office, or by calling 406-444-5900 or 2-1-1. The agency must explain the specific reason for denial — gather documentation addressing that reason before your hearing. QDid SNAP benefits change in 2026? AYes. The One Big Beautiful Bill (OBBB) expanded work requirements to include adults aged 55–64 and parents of children over 14. It cuts federal SNAP funding by $186 billion over 10 years and shifts some benefit costs to states starting in 2028. QCan I use my Montana EBT card at Walmart or Amazon? AYes to both. Walmart accepts Montana EBT in-store and online at walmart.com. Amazon Fresh also accepts SNAP/EBT online — select it as your payment method at checkout. Delivery fees are not covered, only eligible food items. **Categories:** Taxes and Retirement --- ### [Missouri SNAP Benefits: 2027 Outlook, Current 2026 Amounts Up to $994/Month](https://savingtoinvest.com/missouri-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) **Published:** June 22, 2026 **Author:** Andy **Content:** ### Key Takeaways - FY2026 max SNAP benefit: $298/month for 1 person, $994/month for a family of 4 - Benefits load on your Missouri EBT Card 1st–22nd - The OBBB expanded work requirements to adults 55–64 and parents of teens — if you were exempt before, check whether you still are - Missouri uses the federal 130% FPL income limit — the minimum floor, no expansion - Apply or recertify at myDSS Missouri or call 1-855-373-4636 Missouri’s SNAP benefits load onto your Missouri EBT Card 1st–22nd. The maximum for a family of four is $994 a month in fiscal year 2026, up from $975 last year. The open question now is what USDA sets for FY2027, expected in late summer. But 2026 is a more complicated year than most for SNAP. The One Big Beautiful Bill (OBBB) made some of the biggest cuts to the program in its history — and some Missouri residents who qualified last year may not qualify now. Here’s what changed, what you can expect to receive, and what to do if you’re denied. Covered in this Article: [Toggle](#) - [2026 SNAP Benefit Amounts in Missouri](#2026_SNAP_Benefit_Amounts_in_Missouri) - [When Does SNAP Deposit to Your Missouri EBT Card?](#When_Does_SNAP_Deposit_to_Your_Missouri_EBT_Card) - [What’s Changed in 2026: OBBB Work Requirements](#Whats_Changed_in_2026_OBBB_Work_Requirements) - [How to Qualify for Missouri SNAP in 2026](#How_to_Qualify_for_Missouri_SNAP_in_2026) - [How to Apply](#How_to_Apply) - [What to Do If Your Missouri SNAP Application Is Denied](#What_to_Do_If_Your_Missouri_SNAP_Application_Is_Denied) - [What to Watch: Potential SNAP Changes Ahead](#What_to_Watch_Potential_SNAP_Changes_Ahead) - [Where Can You Use Your Missouri EBT Card?](#Where_Can_You_Use_Your_Missouri_EBT_Card) - [Other Benefits If You Receive Missouri SNAP](#Other_Benefits_If_You_Receive_Missouri_SNAP) - [Missouri SNAP: How Benefits Have Changed (2023–2026)](#Missouri_SNAP_How_Benefits_Have_Changed_2023%E2%80%932026) ## 2026 SNAP Benefit Amounts in Missouri Missouri uses the standard federal SNAP benefit schedule. Maximum monthly allotments for FY2026 (October 1, 2025 – September 30, 2026): Household SizeMax Monthly BenefitGross Income Limit (130% FPL)Net Income Limit (100% FPL)1 person$298$1,632/mo$1,255/mo2 people$546$2,214/mo$1,703/mo3 people$785$2,798/mo$2,152/mo4 people$994$3,380/mo$2,600/mo5 people$1,183$3,964/mo$3,049/mo6 people$1,421$4,546/mo$3,497/mo7 people$1,571$5,128/mo$3,945/mo8+ people$1,791+—— **Missouri (MO) uses the federal 130% FPL income standard** — the minimum floor, no expansion. A family of four must have gross income at or below **$3,380/month** to qualify. This is one of the stricter limits nationally. Most households receive less than the maximum. Your actual benefit depends on net income after deductions (rent, utilities, child care, medical expenses for elderly or disabled members). ### How Much Would a Family of 4 Actually Receive in Missouri? Here are two realistic examples to show the range: **Scenario A — Lower-income family** A family of 4 with gross monthly income of **$1,500** (one parent working part-time): - Gross income: $1,500 ✓ (within $3,380/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$300 - Net income: $983 - 30% of net income: $295 - **Monthly SNAP benefit: $994 − $295 = $699** **Scenario B — Working family (moderate income)** A family of 4 with gross monthly income of **$2,000**: - Gross income: $2,000 ✓ (within $3,380/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$400 - Net income: $1,383 - 30% of net income: $415 - **Monthly SNAP benefit: $994 − $415 = $579** The 20% earned income deduction rewards working households. Additional deductions for excess shelter costs, child care, or medical expenses (elderly/disabled) can increase your benefit further. ## When Does SNAP Deposit to Your Missouri EBT Card? Missouri (MO) distributes SNAP benefits based on your **birth month**. Benefits load between the 1st–22nd each month: Birth MonthDeposit DateJanuary1stFebruary3rdMarch5thApril7thMay9thJune11thJuly12thAugust14thSeptember16thOctober18thNovember20thDecember22nd Your case number is on your approval letter or available through [myDSS Missouri](https://mydss.mo.gov). Call **1-855-373-4636** if you’re unsure of your deposit date — it stays the same each month once you’re approved. TANF cash benefits (if applicable) follow a separate deposit schedule. ## What’s Changed in 2026: OBBB Work Requirements The OBBB made several significant changes that took effect in late 2025 and early 2026: **Expanded work requirements**: Adults aged **55–64** who are able to work are now subject to SNAP work requirements for the first time. Previously the cutoff was 49. Parents whose youngest child is **over 14** are also now subject to work rules. **20 hours per week or 80 hours per month** — that’s the threshold for Able-Bodied Adults Without Dependents (ABAWDs) aged 18–64. Work, job training, or approved volunteer activity all count. Fail to meet the requirement and benefits are limited to **3 months in any 36-month period**. **State cost-sharing starting in 2028**: States will begin paying a share of benefit costs based on their SNAP payment error rate. This is new territory for all state budgets. **$186 billion in total federal SNAP cuts** over the next decade. If you were receiving SNAP in 2024 and haven’t recertified recently, check your current eligibility — the rules have shifted. ## How to Qualify for Missouri SNAP in 2026 **Income**: Gross income must be at or below 130% FPL (see table above). Net income (after deductions) must be at or below 100% FPL. **Residency**: Must be a Missouri resident. **Citizenship**: U.S. citizens and certain lawfully present immigrants qualify. Undocumented individuals are not eligible for federal SNAP benefits. **Work requirements**: Most able-bodied adults 18–64 must register for work and accept suitable employment. ABAWDs must meet the 80-hour/month work, training, or volunteer threshold. New in 2026: adults 55–64 are now included. ## How to Apply - **Online**: [myDSS Missouri](https://mydss.mo.gov) — fastest option, available 24/7 - **In person**: Any local Missouri Department of Social Services office - **Phone**: 1-855-373-4636 Missouri has up to **30 days** to process your application — or **7 days** if you qualify for expedited SNAP (very low income or resources). Benefits are backdated to your application date. Things can shift quickly. I’ll update this page when anything changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What to Do If Your Missouri SNAP Application Is Denied Denials are common and often appealable. The most frequent reasons are income slightly over the stated limit, missing documentation, and work requirement issues — all of which can be addressed. **Step 1**: Read your denial notice carefully. Missouri is required to explain the specific reason in writing. **Step 2**: Gather documentation that addresses the reason — recent pay stubs, rent receipts, proof of work activities, or a letter from your employer if hours changed. **Step 3**: Request a fair hearing within **90 days** of your denial. You can request one online at [myDSS Missouri](https://mydss.mo.gov), in person at your local Missouri Department of Social Services office, or by calling **1-855-373-4636**. **Step 4**: While your appeal is pending, you can continue receiving benefits if you were previously approved — request continued benefits when you file your hearing request. --- ## What to Watch: Potential SNAP Changes Ahead **State cost-sharing (FY2027–2028)**: Starting in FY2027, Missouri will begin paying a share of SNAP benefit costs — a first for all states. The percentage depends on Missouri’s payment error rate. If cost pressure builds, expect tighter eligibility administration at the state level. **Work requirement enforcement**: Federal guidance on the expanded age 55–64 rules is still evolving. States are implementing these in phases — if you’re in the newly covered age range, check with your caseworker. **FY2027 COLA adjustment**: Benefits update October 1. I’ll post FY2027 amounts here when USDA releases them (typically late summer 2026). Things can shift quickly — [Subscribe or follow us ↗](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates. --- ## Where Can You Use Your Missouri EBT Card? **In stores**: Any USDA-authorized retailer — including Walmart, Schnucks, Dierbergs, Aldi, Price Cutter, Shop ‘n Save, and most independent grocery stores. Look for the EBT/SNAP sign at checkout. **Online**: Missouri SNAP recipients can shop online through **Amazon Fresh** and **Walmart Grocery** — select SNAP/EBT as your payment method at checkout. Delivery fees are not covered by SNAP (only the groceries themselves). **Farmers markets**: Many Missouri farmers markets accept EBT. Some participate in the Double Up Food Bucks program, which matches SNAP dollars on locally-grown produce. **What SNAP does NOT cover**: Alcohol, tobacco, vitamins/supplements, hot prepared foods, fast food, pet food, household supplies, or hygiene products. ## Other Benefits If You Receive Missouri SNAP SNAP often unlocks access to other programs: - **Medicaid / CHIP**: Receiving SNAP can streamline Medicaid enrollment for adults and children. Apply through [myDSS Missouri](https://mydss.mo.gov). - **LIHEAP**: Low Income Home Energy Assistance helps with utility bills. Contact your local community action agency or call 2-1-1. - **WIC**: Nutrition support for pregnant women, new mothers, and children under 5. Separate application through your state health department. - **Summer EBT (SUN Bucks)**: Extra food benefits for school-age children during summer months. Check with your state for 2026 enrollment. - **Free/reduced school meals**: SNAP households automatically qualify. Register through your child’s school district. For a full overview of federal SNAP amounts and recent cuts, see the [2026 SNAP benefits guide](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). See also: [Missouri unemployment benefit amounts and eligibility rules](https://savingtoinvest.com/missouri-unemployment-benefits/). --- ## Missouri SNAP: How Benefits Have Changed (2023–2026) PeriodMax Benefit (Family of 4)Key DevelopmentFY2023 (Oct 2022 – Sep 2023)$939/monthPandemic Emergency Allotments ended — biggest single drop since the pandemicFY2024 (Oct 2023 – Sep 2024)$973/month~3.7% COLA increase; first full year post-pandemicFY2025 (Oct 2024 – Sep 2025)$975/monthMinimal ~0.2% increase; OBBB signed into lawFY2026 (Oct 2025 – Sep 2026)$994/month~2% increase; expanded work requirements take effect The end of Emergency Allotments in early 2023 was the biggest disruption in recent memory — some households that had received the maximum saw benefits drop to $23/month. FY2026 numbers are all standard formula, no pandemic additions. Frequently Asked Questions QHow much is SNAP in Missouri in 2026? AThe maximum monthly SNAP benefit in Missouri (MO) for FY2026 is $298 for a single person, $546 for 2 people, $785 for 3 people, $994 for a family of 4, and $1,183 for 5 people. Most households receive less than the maximum based on net income after deductions. QWhen does SNAP deposit to my Missouri EBT card? ABenefits load 1st–22nd. Check your approval letter or myDSS Missouri for your exact deposit date. QWhat are the income limits for Missouri SNAP in 2026? AMissouri uses a gross income limit of 130% FPL — approximately $1,632/month for a single person or $3,380/month for a family of four. Net income (after deductions) must be at or below 100% FPL. QHow do I apply for SNAP in Missouri? AApply online at https://mydss.mo.gov, in person at a local Missouri Department of Social Services (DSS) office, or by calling 1-855-373-4636. Processing takes up to 30 days, or 7 days if you qualify for expedited benefits. QWhat can I buy with my Missouri EBT card? ASNAP covers groceries including produce, meat, dairy, bread, cereals, and packaged foods. You can shop in-store at most major grocery chains and online through Amazon Fresh and Walmart Grocery. SNAP does not cover alcohol, tobacco, hot prepared foods, vitamins, or non-food household items. QWhat do I do if my Missouri SNAP application is denied? ARequest a fair hearing within 90 days of your denial notice. Apply online at https://mydss.mo.gov, in person at a local office, or by calling 1-855-373-4636. The agency must explain the specific reason for denial — gather documentation addressing that reason before your hearing. QDid SNAP benefits change in 2026? AYes. The One Big Beautiful Bill (OBBB) expanded work requirements to include adults aged 55–64 and parents of children over 14. It cuts federal SNAP funding by $186 billion over 10 years and shifts some benefit costs to states starting in 2028. QCan I use my Missouri EBT card at Walmart or Amazon? AYes to both. Walmart accepts Missouri EBT in-store and online at walmart.com. Amazon Fresh also accepts SNAP/EBT online — select it as your payment method at checkout. Delivery fees are not covered, only eligible food items. **Categories:** Taxes and Retirement --- ### [Mississippi SNAP Benefits: 2027 Outlook, Current 2026 Amounts Up to $994/Month](https://savingtoinvest.com/mississippi-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) **Published:** June 22, 2026 **Author:** Andy **Content:** ### Key Takeaways - FY2026 max SNAP benefit: $298/month for 1 person, $994/month for a family of 4 - Benefits load on your Mississippi EBT Card 4th–21st - The OBBB expanded work requirements to adults 55–64 and parents of teens — if you were exempt before, check whether you still are - Mississippi uses the federal 130% FPL income limit — the minimum floor, no expansion - Apply or recertify at Mississippi MDHS Benefits or call 1-800-948-3050 Mississippi MDHS Benefits handles SNAP applications and recertifications in Mississippi, with benefits loading onto the Mississippi EBT Card 4th–21st. Fiscal year 2026’s maximum for a family of four is $994 a month, up $19 from last year’s $975. The open question now is what USDA sets for FY2027, expected in late summer. But 2026 is a more complicated year than most for SNAP. The One Big Beautiful Bill (OBBB) made some of the biggest cuts to the program in its history — and some Mississippi residents who qualified last year may not qualify now. Here’s what changed, what you can expect to receive, and what to do if you’re denied. Covered in this Article: [Toggle](#) - [2026 SNAP Benefit Amounts in Mississippi](#2026_SNAP_Benefit_Amounts_in_Mississippi) - [When Does SNAP Deposit to Your Mississippi EBT Card?](#When_Does_SNAP_Deposit_to_Your_Mississippi_EBT_Card) - [What’s Changed in 2026: OBBB Work Requirements](#Whats_Changed_in_2026_OBBB_Work_Requirements) - [How to Qualify for Mississippi SNAP in 2026](#How_to_Qualify_for_Mississippi_SNAP_in_2026) - [How to Apply](#How_to_Apply) - [What to Do If Your Mississippi SNAP Application Is Denied](#What_to_Do_If_Your_Mississippi_SNAP_Application_Is_Denied) - [What to Watch: Potential SNAP Changes Ahead](#What_to_Watch_Potential_SNAP_Changes_Ahead) - [Where Can You Use Your Mississippi EBT Card?](#Where_Can_You_Use_Your_Mississippi_EBT_Card) - [Other Benefits If You Receive Mississippi SNAP](#Other_Benefits_If_You_Receive_Mississippi_SNAP) - [Mississippi SNAP: How Benefits Have Changed (2023–2026)](#Mississippi_SNAP_How_Benefits_Have_Changed_2023%E2%80%932026) ## 2026 SNAP Benefit Amounts in Mississippi Mississippi uses the standard federal SNAP benefit schedule. Maximum monthly allotments for FY2026 (October 1, 2025 – September 30, 2026): Household SizeMax Monthly BenefitGross Income Limit (130% FPL)Net Income Limit (100% FPL)1 person$298$1,632/mo$1,255/mo2 people$546$2,214/mo$1,703/mo3 people$785$2,798/mo$2,152/mo4 people$994$3,380/mo$2,600/mo5 people$1,183$3,964/mo$3,049/mo6 people$1,421$4,546/mo$3,497/mo7 people$1,571$5,128/mo$3,945/mo8+ people$1,791+—— **Mississippi (MS) uses the federal 130% FPL income standard** — the minimum floor, no expansion. A family of four must have gross income at or below **$3,380/month** to qualify. This is one of the stricter limits nationally. Most households receive less than the maximum. Your actual benefit depends on net income after deductions (rent, utilities, child care, medical expenses for elderly or disabled members). ### How Much Would a Family of 4 Actually Receive in Mississippi? Here are two realistic examples to show the range: **Scenario A — Lower-income family** A family of 4 with gross monthly income of **$1,500** (one parent working part-time): - Gross income: $1,500 ✓ (within $3,380/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$300 - Net income: $983 - 30% of net income: $295 - **Monthly SNAP benefit: $994 − $295 = $699** **Scenario B — Working family (moderate income)** A family of 4 with gross monthly income of **$2,000**: - Gross income: $2,000 ✓ (within $3,380/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$400 - Net income: $1,383 - 30% of net income: $415 - **Monthly SNAP benefit: $994 − $415 = $579** The 20% earned income deduction rewards working households. Additional deductions for excess shelter costs, child care, or medical expenses (elderly/disabled) can increase your benefit further. ## When Does SNAP Deposit to Your Mississippi EBT Card? Mississippi (MS) distributes SNAP benefits based on the **last digit of your case number**. Benefits load between the 4th–21st each month: Case # Last DigitDeposit Date14th26th38th410th512th613th715th817th919th021st Your case number is on your approval letter or available through [Mississippi MDHS Benefits](https://mdhs.ms.gov/snap). Call **1-800-948-3050** if you’re unsure of your deposit date — it stays the same each month once you’re approved. TANF cash benefits (if applicable) follow a separate deposit schedule. ## What’s Changed in 2026: OBBB Work Requirements The OBBB made several significant changes that took effect in late 2025 and early 2026: **Expanded work requirements**: Adults aged **55–64** who are able to work are now subject to SNAP work requirements for the first time. Previously the cutoff was 49. Parents whose youngest child is **over 14** are also now subject to work rules. **20 hours per week or 80 hours per month** — that’s the threshold for Able-Bodied Adults Without Dependents (ABAWDs) aged 18–64. Work, job training, or approved volunteer activity all count. Fail to meet the requirement and benefits are limited to **3 months in any 36-month period**. **State cost-sharing starting in 2028**: States will begin paying a share of benefit costs based on their SNAP payment error rate. This is new territory for all state budgets. **$186 billion in total federal SNAP cuts** over the next decade. If you were receiving SNAP in 2024 and haven’t recertified recently, check your current eligibility — the rules have shifted. ## How to Qualify for Mississippi SNAP in 2026 **Income**: Gross income must be at or below 130% FPL (see table above). Net income (after deductions) must be at or below 100% FPL. **Residency**: Must be a Mississippi resident. **Citizenship**: U.S. citizens and certain lawfully present immigrants qualify. Undocumented individuals are not eligible for federal SNAP benefits. **Work requirements**: Most able-bodied adults 18–64 must register for work and accept suitable employment. ABAWDs must meet the 80-hour/month work, training, or volunteer threshold. New in 2026: adults 55–64 are now included. ## How to Apply - **Online**: [Mississippi MDHS Benefits](https://mdhs.ms.gov/snap) — fastest option, available 24/7 - **In person**: Any local Mississippi Department of Human Services office - **Phone**: 1-800-948-3050 Mississippi has up to **30 days** to process your application — or **7 days** if you qualify for expedited SNAP (very low income or resources). Benefits are backdated to your application date. Things can shift quickly. I’ll update this page when anything changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What to Do If Your Mississippi SNAP Application Is Denied Denials are common and often appealable. The most frequent reasons are income slightly over the stated limit, missing documentation, and work requirement issues — all of which can be addressed. **Step 1**: Read your denial notice carefully. Mississippi is required to explain the specific reason in writing. **Step 2**: Gather documentation that addresses the reason — recent pay stubs, rent receipts, proof of work activities, or a letter from your employer if hours changed. **Step 3**: Request a fair hearing within **90 days** of your denial. You can request one online at [Mississippi MDHS Benefits](https://mdhs.ms.gov/snap), in person at your local Mississippi Department of Human Services office, or by calling **1-800-948-3050**. **Step 4**: While your appeal is pending, you can continue receiving benefits if you were previously approved — request continued benefits when you file your hearing request. --- ## What to Watch: Potential SNAP Changes Ahead **State cost-sharing (FY2027–2028)**: Starting in FY2027, Mississippi will begin paying a share of SNAP benefit costs — a first for all states. The percentage depends on Mississippi’s payment error rate. If cost pressure builds, expect tighter eligibility administration at the state level. **Work requirement enforcement**: Federal guidance on the expanded age 55–64 rules is still evolving. States are implementing these in phases — if you’re in the newly covered age range, check with your caseworker. **FY2027 COLA adjustment**: Benefits update October 1. I’ll post FY2027 amounts here when USDA releases them (typically late summer 2026). Things can shift quickly — [Subscribe or follow us ↗](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates. --- ## Where Can You Use Your Mississippi EBT Card? **In stores**: Any USDA-authorized retailer — including Walmart, Kroger, Winn-Dixie, ALDI, Dollar General (select food items), and most independent grocery stores. Look for the EBT/SNAP sign at checkout. **Online**: Mississippi SNAP recipients can shop online through **Amazon Fresh** and **Walmart Grocery** — select SNAP/EBT as your payment method at checkout. Delivery fees are not covered by SNAP (only the groceries themselves). **Farmers markets**: Many Mississippi farmers markets accept EBT. Some participate in the Double Up Food Bucks program, which matches SNAP dollars on locally-grown produce. **What SNAP does NOT cover**: Alcohol, tobacco, vitamins/supplements, hot prepared foods, fast food, pet food, household supplies, or hygiene products. ## Other Benefits If You Receive Mississippi SNAP SNAP often unlocks access to other programs: - **Medicaid / CHIP**: Receiving SNAP can streamline Medicaid enrollment for adults and children. Apply through [Mississippi MDHS Benefits](https://mdhs.ms.gov/snap). - **LIHEAP**: Low Income Home Energy Assistance helps with utility bills. Contact your local community action agency or call 2-1-1. - **WIC**: Nutrition support for pregnant women, new mothers, and children under 5. Separate application through your state health department. - **Summer EBT (SUN Bucks)**: Extra food benefits for school-age children during summer months. Check with your state for 2026 enrollment. - **Free/reduced school meals**: SNAP households automatically qualify. Register through your child’s school district. For a full overview of federal SNAP amounts and recent cuts, see the [2026 SNAP benefits guide](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). See also: [Mississippi unemployment benefit amounts and eligibility rules](https://savingtoinvest.com/mississippi-unemployment-benefits/). --- ## Mississippi SNAP: How Benefits Have Changed (2023–2026) PeriodMax Benefit (Family of 4)Key DevelopmentFY2023 (Oct 2022 – Sep 2023)$939/monthPandemic Emergency Allotments ended — biggest single drop since the pandemicFY2024 (Oct 2023 – Sep 2024)$973/month~3.7% COLA increase; first full year post-pandemicFY2025 (Oct 2024 – Sep 2025)$975/monthMinimal ~0.2% increase; OBBB signed into lawFY2026 (Oct 2025 – Sep 2026)$994/month~2% increase; expanded work requirements take effect The end of Emergency Allotments in early 2023 was the biggest disruption in recent memory — some households that had received the maximum saw benefits drop to $23/month. FY2026 numbers are all standard formula, no pandemic additions. Frequently Asked Questions QHow much is SNAP in Mississippi in 2026? AThe maximum monthly SNAP benefit in Mississippi (MS) for FY2026 is $298 for a single person, $546 for 2 people, $785 for 3 people, $994 for a family of 4, and $1,183 for 5 people. Most households receive less than the maximum based on net income after deductions. QWhen does SNAP deposit to my Mississippi EBT card? ABenefits load 4th–21st. Check your approval letter or Mississippi MDHS Benefits for your exact deposit date. QWhat are the income limits for Mississippi SNAP in 2026? AMississippi uses a gross income limit of 130% FPL — approximately $1,632/month for a single person or $3,380/month for a family of four. Net income (after deductions) must be at or below 100% FPL. QHow do I apply for SNAP in Mississippi? AApply online at https://mdhs.ms.gov/snap, in person at a local Mississippi Department of Human Services (MDHS) office, or by calling 1-800-948-3050. Processing takes up to 30 days, or 7 days if you qualify for expedited benefits. QWhat can I buy with my Mississippi EBT card? ASNAP covers groceries including produce, meat, dairy, bread, cereals, and packaged foods. You can shop in-store at most major grocery chains and online through Amazon Fresh and Walmart Grocery. SNAP does not cover alcohol, tobacco, hot prepared foods, vitamins, or non-food household items. QWhat do I do if my Mississippi SNAP application is denied? ARequest a fair hearing within 90 days of your denial notice. Apply online at https://mdhs.ms.gov/snap, in person at a local office, or by calling 1-800-948-3050. The agency must explain the specific reason for denial — gather documentation addressing that reason before your hearing. QDid SNAP benefits change in 2026? AYes. The One Big Beautiful Bill (OBBB) expanded work requirements to include adults aged 55–64 and parents of children over 14. It cuts federal SNAP funding by $186 billion over 10 years and shifts some benefit costs to states starting in 2028. QCan I use my Mississippi EBT card at Walmart or Amazon? AYes to both. Walmart accepts Mississippi EBT in-store and online at walmart.com. Amazon Fresh also accepts SNAP/EBT online — select it as your payment method at checkout. Delivery fees are not covered, only eligible food items. **Categories:** Taxes and Retirement --- ### [Minnesota SNAP Benefits: 2027 Outlook, Current 2026 Amounts Up to $994/Month](https://savingtoinvest.com/minnesota-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) **Published:** June 22, 2026 **Author:** Andy **Content:** ### Key Takeaways - FY2026 max SNAP benefit: $298/month for 1 person, $994/month for a family of 4 - Benefits load on your Minnesota EBT Card 4th–13th - The OBBB expanded work requirements to adults 55–64 and parents of teens — if you were exempt before, check whether you still are - Minnesota uses BBCE at 200% FPL — more households qualify than in standard states - Apply or recertify at MNbenefits Portal or call 1-800-657-3739 Minnesota benefits go out on the Minnesota EBT Card 4th–13th, and Minnesota uses Broad-Based Categorical Eligibility at 200% of the poverty line, so more households qualify here than in states that stick to the federal floor. The max for a family of four in fiscal year 2026 is $994 a month, up from $975 last year. The open question now is what USDA sets for FY2027, expected in late summer. But 2026 is a more complicated year than most for SNAP. The One Big Beautiful Bill (OBBB) made some of the biggest cuts to the program in its history — and some Minnesota residents who qualified last year may not qualify now. Here’s what changed, what you can expect to receive, and what to do if you’re denied. Covered in this Article: [Toggle](#) - [2026 SNAP Benefit Amounts in Minnesota](#2026_SNAP_Benefit_Amounts_in_Minnesota) - [When Does SNAP Deposit to Your Minnesota EBT Card?](#When_Does_SNAP_Deposit_to_Your_Minnesota_EBT_Card) - [What’s Changed in 2026: OBBB Work Requirements](#Whats_Changed_in_2026_OBBB_Work_Requirements) - [How to Qualify for Minnesota SNAP in 2026](#How_to_Qualify_for_Minnesota_SNAP_in_2026) - [How to Apply](#How_to_Apply) - [What to Do If Your Minnesota SNAP Application Is Denied](#What_to_Do_If_Your_Minnesota_SNAP_Application_Is_Denied) - [What to Watch: Potential SNAP Changes Ahead](#What_to_Watch_Potential_SNAP_Changes_Ahead) - [Where Can You Use Your Minnesota EBT Card?](#Where_Can_You_Use_Your_Minnesota_EBT_Card) - [Other Benefits If You Receive Minnesota SNAP](#Other_Benefits_If_You_Receive_Minnesota_SNAP) - [Minnesota SNAP: How Benefits Have Changed (2023–2026)](#Minnesota_SNAP_How_Benefits_Have_Changed_2023%E2%80%932026) ## 2026 SNAP Benefit Amounts in Minnesota Minnesota uses the standard federal SNAP benefit schedule. Maximum monthly allotments for FY2026 (October 1, 2025 – September 30, 2026): Household SizeMax Monthly BenefitGross Income Limit (200% FPL)Net Income Limit (100% FPL)1 person$298$2,510/mo$1,255/mo2 people$546$3,406/mo$1,703/mo3 people$785$4,304/mo$2,152/mo4 people$994$5,200/mo$2,600/mo5 people$1,183$6,098/mo$3,049/mo6 people$1,421$6,994/mo$3,497/mo7 people$1,571$7,890/mo$3,945/mo8+ people$1,791+—— **Minnesota (MN) uses BBCE at 200% FPL** — significantly more generous than the 130% federal floor. A family of four can qualify with gross income up to **$5,200/month**, compared to just $3,380/month in the most restrictive states. Most households receive less than the maximum. Your actual benefit depends on net income after deductions (rent, utilities, child care, medical expenses for elderly or disabled members). ### How Much Would a Family of 4 Actually Receive in Minnesota? Here are two realistic examples to show the range: **Scenario A — Lower-income family** A family of 4 with gross monthly income of **$1,500** (one parent working part-time): - Gross income: $1,500 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$300 - Net income: $983 - 30% of net income: $295 - **Monthly SNAP benefit: $994 − $295 = $699** **Scenario B — Working family (moderate income)** A family of 4 with gross monthly income of **$3,200**: - Gross income: $3,200 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$640 - Net income: $2,343 - 30% of net income: $703 - **Monthly SNAP benefit: $994 − $703 = $291** The 20% earned income deduction rewards working households. Additional deductions for excess shelter costs, child care, or medical expenses (elderly/disabled) can increase your benefit further. ## When Does SNAP Deposit to Your Minnesota EBT Card? Minnesota (MN) distributes SNAP benefits based on the **last digit of your case number**. Benefits load between the 4th–13th each month: Case # Last DigitDeposit Date14th25th36th47th58th69th710th811th912th013th Your case number is on your approval letter or available through [MNbenefits Portal](https://mnbenefits.mn.gov). Call **1-800-657-3739** if you’re unsure of your deposit date — it stays the same each month once you’re approved. TANF cash benefits (if applicable) follow a separate deposit schedule. ## What’s Changed in 2026: OBBB Work Requirements The OBBB made several significant changes that took effect in late 2025 and early 2026: **Expanded work requirements**: Adults aged **55–64** who are able to work are now subject to SNAP work requirements for the first time. Previously the cutoff was 49. Parents whose youngest child is **over 14** are also now subject to work rules. **20 hours per week or 80 hours per month** — that’s the threshold for Able-Bodied Adults Without Dependents (ABAWDs) aged 18–64. Work, job training, or approved volunteer activity all count. Fail to meet the requirement and benefits are limited to **3 months in any 36-month period**. **State cost-sharing starting in 2028**: States will begin paying a share of benefit costs based on their SNAP payment error rate. This is new territory for all state budgets. **$186 billion in total federal SNAP cuts** over the next decade. If you were receiving SNAP in 2024 and haven’t recertified recently, check your current eligibility — the rules have shifted. ## How to Qualify for Minnesota SNAP in 2026 **Income**: Gross income must be at or below 200% FPL (see table above). Net income (after deductions) must be at or below 100% FPL. **Residency**: Must be a Minnesota resident. **Citizenship**: U.S. citizens and certain lawfully present immigrants qualify. Undocumented individuals are not eligible for federal SNAP benefits. **Work requirements**: Most able-bodied adults 18–64 must register for work and accept suitable employment. ABAWDs must meet the 80-hour/month work, training, or volunteer threshold. New in 2026: adults 55–64 are now included. ## How to Apply - **Online**: [MNbenefits Portal](https://mnbenefits.mn.gov) — fastest option, available 24/7 - **In person**: Any local Minnesota Department of Human Services office - **Phone**: 1-800-657-3739 Minnesota has up to **30 days** to process your application — or **7 days** if you qualify for expedited SNAP (very low income or resources). Benefits are backdated to your application date. Things can shift quickly. I’ll update this page when anything changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What to Do If Your Minnesota SNAP Application Is Denied Denials are common and often appealable. The most frequent reasons are income slightly over the stated limit, missing documentation, and work requirement issues — all of which can be addressed. **Step 1**: Read your denial notice carefully. Minnesota is required to explain the specific reason in writing. **Step 2**: Gather documentation that addresses the reason — recent pay stubs, rent receipts, proof of work activities, or a letter from your employer if hours changed. **Step 3**: Request a fair hearing within **90 days** of your denial. You can request one online at [MNbenefits Portal](https://mnbenefits.mn.gov), in person at your local Minnesota Department of Human Services office, or by calling **1-800-657-3739**. **Step 4**: While your appeal is pending, you can continue receiving benefits if you were previously approved — request continued benefits when you file your hearing request. --- ## What to Watch: Potential SNAP Changes Ahead **State cost-sharing (FY2027–2028)**: Starting in FY2027, Minnesota will begin paying a share of SNAP benefit costs — a first for all states. The percentage depends on Minnesota’s payment error rate. If cost pressure builds, expect tighter eligibility administration at the state level. **Work requirement enforcement**: Federal guidance on the expanded age 55–64 rules is still evolving. States are implementing these in phases — if you’re in the newly covered age range, check with your caseworker. **BBCE at risk**: Minnesota’s 200% FPL income limit narrowly survived the OBBB — earlier versions of the legislation would have eliminated it. If BBCE is eliminated in future legislation, the income limit for a family of 4 would drop from $5,200/month to $3,380/month. **FY2027 COLA adjustment**: Benefits update October 1. I’ll post FY2027 amounts here when USDA releases them (typically late summer 2026). Things can shift quickly — [Subscribe or follow us ↗](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates. --- ## Where Can You Use Your Minnesota EBT Card? **In stores**: Any USDA-authorized retailer — including Walmart, Cub Foods, Hy-Vee, Aldi, Rainbow Foods, Target (food items), and most independent grocery stores. Look for the EBT/SNAP sign at checkout. **Online**: Minnesota SNAP recipients can shop online through **Amazon Fresh** and **Walmart Grocery** — select SNAP/EBT as your payment method at checkout. Delivery fees are not covered by SNAP (only the groceries themselves). **Farmers markets**: Many Minnesota farmers markets accept EBT. Some participate in the Double Up Food Bucks program, which matches SNAP dollars on locally-grown produce. **What SNAP does NOT cover**: Alcohol, tobacco, vitamins/supplements, hot prepared foods, fast food, pet food, household supplies, or hygiene products. ## Other Benefits If You Receive Minnesota SNAP SNAP often unlocks access to other programs: - **Medicaid / CHIP**: Receiving SNAP can streamline Medicaid enrollment for adults and children. Apply through [MNbenefits Portal](https://mnbenefits.mn.gov). - **LIHEAP**: Low Income Home Energy Assistance helps with utility bills. Contact your local community action agency or call 2-1-1. - **WIC**: Nutrition support for pregnant women, new mothers, and children under 5. Separate application through your state health department. - **Summer EBT (SUN Bucks)**: Extra food benefits for school-age children during summer months. Check with your state for 2026 enrollment. - **Free/reduced school meals**: SNAP households automatically qualify. Register through your child’s school district. For a full overview of federal SNAP amounts and recent cuts, see the [2026 SNAP benefits guide](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). See also: [Minnesota unemployment benefit amounts and eligibility rules](https://savingtoinvest.com/minnesota-ui-program-deed-unemployment-benefits-news-and-updates-on-extended-2021-programs-300-fpuc-pua-and-peuc/). --- ## Minnesota SNAP: How Benefits Have Changed (2023–2026) PeriodMax Benefit (Family of 4)Key DevelopmentFY2023 (Oct 2022 – Sep 2023)$939/monthPandemic Emergency Allotments ended — biggest single drop since the pandemicFY2024 (Oct 2023 – Sep 2024)$973/month~3.7% COLA increase; first full year post-pandemicFY2025 (Oct 2024 – Sep 2025)$975/monthMinimal ~0.2% increase; OBBB signed into lawFY2026 (Oct 2025 – Sep 2026)$994/month~2% increase; expanded work requirements take effect The end of Emergency Allotments in early 2023 was the biggest disruption in recent memory — some households that had received the maximum saw benefits drop to $23/month. FY2026 numbers are all standard formula, no pandemic additions. Frequently Asked Questions QHow much is SNAP in Minnesota in 2026? AThe maximum monthly SNAP benefit in Minnesota (MN) for FY2026 is $298 for a single person, $546 for 2 people, $785 for 3 people, $994 for a family of 4, and $1,183 for 5 people. Most households receive less than the maximum based on net income after deductions. QWhen does SNAP deposit to my Minnesota EBT card? ABenefits load 4th–13th. Check your approval letter or MNbenefits Portal for your exact deposit date. QWhat are the income limits for Minnesota SNAP in 2026? AMinnesota uses a gross income limit of 200% FPL — approximately $2,510/month for a single person or $5,200/month for a family of four. Net income (after deductions) must be at or below 100% FPL. QHow do I apply for SNAP in Minnesota? AApply online at https://mnbenefits.mn.gov, in person at a local Minnesota Department of Human Services (DHS) office, or by calling 1-800-657-3739. Processing takes up to 30 days, or 7 days if you qualify for expedited benefits. QWhat can I buy with my Minnesota EBT card? ASNAP covers groceries including produce, meat, dairy, bread, cereals, and packaged foods. You can shop in-store at most major grocery chains and online through Amazon Fresh and Walmart Grocery. SNAP does not cover alcohol, tobacco, hot prepared foods, vitamins, or non-food household items. QWhat do I do if my Minnesota SNAP application is denied? ARequest a fair hearing within 90 days of your denial notice. Apply online at https://mnbenefits.mn.gov, in person at a local office, or by calling 1-800-657-3739. The agency must explain the specific reason for denial — gather documentation addressing that reason before your hearing. QDid SNAP benefits change in 2026? AYes. The One Big Beautiful Bill (OBBB) expanded work requirements to include adults aged 55–64 and parents of children over 14. It cuts federal SNAP funding by $186 billion over 10 years and shifts some benefit costs to states starting in 2028. QCan I use my Minnesota EBT card at Walmart or Amazon? AYes to both. Walmart accepts Minnesota EBT in-store and online at walmart.com. Amazon Fresh also accepts SNAP/EBT online — select it as your payment method at checkout. Delivery fees are not covered, only eligible food items. **Categories:** Taxes and Retirement --- ### [Michigan SNAP Benefits: 2027 Outlook, Current 2026 Amounts Up to $994/Month](https://savingtoinvest.com/michigan-snap-food-stamp-program-latest-updates-and-news/) **Published:** January 30, 2023 **Author:** Andy **Content:** ### Key Takeaways - FY2026 max SNAP benefit: $298/month for 1 person, $994/month for a family of 4 - Benefits load on your Bridge Card (EBT) 3rd–21st - The OBBB expanded work requirements to adults 55–64 and parents of teens — if you were exempt before, check whether you still are - Michigan uses BBCE at 200% FPL — more households qualify than in standard states - Apply or recertify at MI Bridges or call 1-855-275-6424 If you’re applying for or renewing SNAP in Michigan, benefits load onto the Bridge Card (EBT) 3rd–21st through MI Bridges. The fiscal year 2026 maximum for a family of four is $994 a month, up from $975 last year. The open question now is what USDA sets for FY2027, expected in late summer. But 2026 is a more complicated year than most for SNAP. The One Big Beautiful Bill (OBBB) made some of the biggest cuts to the program in its history — and some Michigan residents who qualified last year may not qualify now. Here’s what changed, what you can expect to receive, and what to do if you’re denied. Covered in this Article: [Toggle](#) - [2026 SNAP Benefit Amounts in Michigan](#2026_SNAP_Benefit_Amounts_in_Michigan) - [When Does SNAP Deposit to Your Michigan EBT Card?](#When_Does_SNAP_Deposit_to_Your_Michigan_EBT_Card) - [What’s Changed in 2026: OBBB Work Requirements](#Whats_Changed_in_2026_OBBB_Work_Requirements) - [How to Qualify for Michigan SNAP in 2026](#How_to_Qualify_for_Michigan_SNAP_in_2026) - [How to Apply](#How_to_Apply) - [What to Do If Your Michigan SNAP Application Is Denied](#What_to_Do_If_Your_Michigan_SNAP_Application_Is_Denied) - [What to Watch: Potential SNAP Changes Ahead](#What_to_Watch_Potential_SNAP_Changes_Ahead) - [Where Can You Use Your Michigan EBT Card?](#Where_Can_You_Use_Your_Michigan_EBT_Card) - [Other Benefits If You Receive Michigan SNAP](#Other_Benefits_If_You_Receive_Michigan_SNAP) - [Michigan SNAP: How Benefits Have Changed (2023–2026)](#Michigan_SNAP_How_Benefits_Have_Changed_2023%E2%80%932026) ## 2026 SNAP Benefit Amounts in Michigan Michigan uses the standard federal SNAP benefit schedule. Maximum monthly allotments for FY2026 (October 1, 2025 – September 30, 2026): Household SizeMax Monthly BenefitGross Income Limit (200% FPL)Net Income Limit (100% FPL)1 person$298$2,510/mo$1,255/mo2 people$546$3,406/mo$1,703/mo3 people$785$4,304/mo$2,152/mo4 people$994$5,200/mo$2,600/mo5 people$1,183$6,098/mo$3,049/mo6 people$1,421$6,994/mo$3,497/mo7 people$1,571$7,890/mo$3,945/mo8+ people$1,791+—— **Michigan (MI) uses BBCE at 200% FPL** — significantly more generous than the 130% federal floor. A family of four can qualify with gross income up to **$5,200/month**, compared to just $3,380/month in the most restrictive states. Most households receive less than the maximum. Your actual benefit depends on net income after deductions (rent, utilities, child care, medical expenses for elderly or disabled members). ### How Much Would a Family of 4 Actually Receive in Michigan? Here are two realistic examples to show the range: **Scenario A — Lower-income family** A family of 4 with gross monthly income of **$1,500** (one parent working part-time): - Gross income: $1,500 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$300 - Net income: $983 - 30% of net income: $295 - **Monthly SNAP benefit: $994 − $295 = $699** **Scenario B — Working family (moderate income)** A family of 4 with gross monthly income of **$3,200**: - Gross income: $3,200 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$640 - Net income: $2,343 - 30% of net income: $703 - **Monthly SNAP benefit: $994 − $703 = $291** The 20% earned income deduction rewards working households. Additional deductions for excess shelter costs, child care, or medical expenses (elderly/disabled) can increase your benefit further. ## When Does SNAP Deposit to Your Michigan EBT Card? Michigan (MI) distributes SNAP benefits based on the **last digit of your case number**. Benefits load between the 3rd–21st each month: Case # Last DigitDeposit Date13rd25th37th49th511th613th715th817th919th021st Your case number is on your approval letter or available through [MI Bridges](https://michigan.gov/mdhhs). Call **1-855-275-6424** if you’re unsure of your deposit date — it stays the same each month once you’re approved. TANF cash benefits (if applicable) follow a separate deposit schedule. ## What’s Changed in 2026: OBBB Work Requirements The OBBB made several significant changes that took effect in late 2025 and early 2026: **Expanded work requirements**: Adults aged **55–64** who are able to work are now subject to SNAP work requirements for the first time. Previously the cutoff was 49. Parents whose youngest child is **over 14** are also now subject to work rules. **20 hours per week or 80 hours per month** — that’s the threshold for Able-Bodied Adults Without Dependents (ABAWDs) aged 18–64. Work, job training, or approved volunteer activity all count. Fail to meet the requirement and benefits are limited to **3 months in any 36-month period**. **State cost-sharing starting in 2028**: States will begin paying a share of benefit costs based on their SNAP payment error rate. This is new territory for all state budgets. **$186 billion in total federal SNAP cuts** over the next decade. If you were receiving SNAP in 2024 and haven’t recertified recently, check your current eligibility — the rules have shifted. ## How to Qualify for Michigan SNAP in 2026 **Income**: Gross income must be at or below 200% FPL (see table above). Net income (after deductions) must be at or below 100% FPL. **Residency**: Must be a Michigan resident. **Citizenship**: U.S. citizens and certain lawfully present immigrants qualify. Undocumented individuals are not eligible for federal SNAP benefits. **Work requirements**: Most able-bodied adults 18–64 must register for work and accept suitable employment. ABAWDs must meet the 80-hour/month work, training, or volunteer threshold. New in 2026: adults 55–64 are now included. ## How to Apply - **Online**: [MI Bridges](https://michigan.gov/mdhhs) — fastest option, available 24/7 - **In person**: Any local Michigan Department of Health and Human Services office - **Phone**: 1-855-275-6424 Michigan has up to **30 days** to process your application — or **7 days** if you qualify for expedited SNAP (very low income or resources). Benefits are backdated to your application date. Things can shift quickly. I’ll update this page when anything changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What to Do If Your Michigan SNAP Application Is Denied Denials are common and often appealable. The most frequent reasons are income slightly over the stated limit, missing documentation, and work requirement issues — all of which can be addressed. **Step 1**: Read your denial notice carefully. Michigan is required to explain the specific reason in writing. **Step 2**: Gather documentation that addresses the reason — recent pay stubs, rent receipts, proof of work activities, or a letter from your employer if hours changed. **Step 3**: Request a fair hearing within **90 days** of your denial. You can request one online at [MI Bridges](https://michigan.gov/mdhhs), in person at your local Michigan Department of Health and Human Services office, or by calling **1-855-275-6424**. **Step 4**: While your appeal is pending, you can continue receiving benefits if you were previously approved — request continued benefits when you file your hearing request. --- ## What to Watch: Potential SNAP Changes Ahead **State cost-sharing (FY2027–2028)**: Starting in FY2027, Michigan will begin paying a share of SNAP benefit costs — a first for all states. The percentage depends on Michigan’s payment error rate. If cost pressure builds, expect tighter eligibility administration at the state level. **Work requirement enforcement**: Federal guidance on the expanded age 55–64 rules is still evolving. States are implementing these in phases — if you’re in the newly covered age range, check with your caseworker. **BBCE at risk**: Michigan’s 200% FPL income limit narrowly survived the OBBB — earlier versions of the legislation would have eliminated it. If BBCE is eliminated in future legislation, the income limit for a family of 4 would drop from $5,200/month to $3,380/month. **FY2027 COLA adjustment**: Benefits update October 1. I’ll post FY2027 amounts here when USDA releases them (typically late summer 2026). Things can shift quickly — [Subscribe or follow us ↗](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates. --- ## Where Can You Use Your Michigan EBT Card? **In stores**: Any USDA-authorized retailer — including Walmart, Kroger, Meijer, ALDI, Gordon Food Service Store, Spartan Stores, and most independent grocery stores. Look for the EBT/SNAP sign at checkout. **Online**: Michigan SNAP recipients can shop online through **Amazon Fresh** and **Walmart Grocery** — select SNAP/EBT as your payment method at checkout. Delivery fees are not covered by SNAP (only the groceries themselves). **Farmers markets**: Many Michigan farmers markets accept EBT. Some participate in the Double Up Food Bucks program, which matches SNAP dollars on locally-grown produce. **What SNAP does NOT cover**: Alcohol, tobacco, vitamins/supplements, hot prepared foods, fast food, pet food, household supplies, or hygiene products. Michigan’s EBT card is called the **Bridge Card** — you’ll use it at any authorized retailer the same way you’d use SNAP EBT in other states. ## Other Benefits If You Receive Michigan SNAP SNAP often unlocks access to other programs: - **Medicaid / CHIP**: Receiving SNAP can streamline Medicaid enrollment for adults and children. Apply through [MI Bridges](https://michigan.gov/mdhhs). - **LIHEAP**: Low Income Home Energy Assistance helps with utility bills. Contact your local community action agency or call 2-1-1. - **WIC**: Nutrition support for pregnant women, new mothers, and children under 5. Separate application through your state health department. - **Summer EBT (SUN Bucks)**: Extra food benefits for school-age children during summer months. Check with your state for 2026 enrollment. - **Free/reduced school meals**: SNAP households automatically qualify. Register through your child’s school district. For a full overview of federal SNAP amounts and recent cuts, see the [2026 SNAP benefits guide](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). See also: [Michigan unemployment benefit amounts and eligibility rules](https://savingtoinvest.com/michigan-unemployment-benefits/). --- ## Michigan SNAP: How Benefits Have Changed (2023–2026) PeriodMax Benefit (Family of 4)Key DevelopmentFY2023 (Oct 2022 – Sep 2023)$939/monthPandemic Emergency Allotments ended — biggest single drop since the pandemicFY2024 (Oct 2023 – Sep 2024)$973/month~3.7% COLA increase; first full year post-pandemicFY2025 (Oct 2024 – Sep 2025)$975/monthMinimal ~0.2% increase; OBBB signed into lawFY2026 (Oct 2025 – Sep 2026)$994/month~2% increase; expanded work requirements take effect The end of Emergency Allotments in early 2023 was the biggest disruption in recent memory — some households that had received the maximum saw benefits drop to $23/month. FY2026 numbers are all standard formula, no pandemic additions. Frequently Asked Questions QHow much is SNAP in Michigan in 2026? AThe maximum monthly SNAP benefit in Michigan (MI) for FY2026 is $298 for a single person, $546 for 2 people, $785 for 3 people, $994 for a family of 4, and $1,183 for 5 people. Most households receive less than the maximum based on net income after deductions. QWhen does SNAP deposit to my Michigan EBT card? ABenefits load 3rd–21st. Check your approval letter or MI Bridges for your exact deposit date. QWhat are the income limits for Michigan SNAP in 2026? AMichigan uses a gross income limit of 200% FPL — approximately $2,510/month for a single person or $5,200/month for a family of four. Net income (after deductions) must be at or below 100% FPL. QHow do I apply for SNAP in Michigan? AApply online at https://michigan.gov/mdhhs, in person at a local Michigan Department of Health and Human Services (MDHHS) office, or by calling 1-855-275-6424. Processing takes up to 30 days, or 7 days if you qualify for expedited benefits. QWhat can I buy with my Michigan EBT card? ASNAP covers groceries including produce, meat, dairy, bread, cereals, and packaged foods. You can shop in-store at most major grocery chains and online through Amazon Fresh and Walmart Grocery. SNAP does not cover alcohol, tobacco, hot prepared foods, vitamins, or non-food household items. QWhat do I do if my Michigan SNAP application is denied? ARequest a fair hearing within 90 days of your denial notice. Apply online at https://michigan.gov/mdhhs, in person at a local office, or by calling 1-855-275-6424. The agency must explain the specific reason for denial — gather documentation addressing that reason before your hearing. QDid SNAP benefits change in 2026? AYes. The One Big Beautiful Bill (OBBB) expanded work requirements to include adults aged 55–64 and parents of children over 14. It cuts federal SNAP funding by $186 billion over 10 years and shifts some benefit costs to states starting in 2028. QCan I use my Michigan EBT card at Walmart or Amazon? AYes to both. Walmart accepts Michigan EBT in-store and online at walmart.com. Amazon Fresh also accepts SNAP/EBT online — select it as your payment method at checkout. Delivery fees are not covered, only eligible food items. **Categories:** Government Rebates and Payments --- ### [Massachusetts SNAP Benefits: 2027 Outlook, Current 2026 Amounts Up to $994/Month](https://savingtoinvest.com/massachusetts-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) **Published:** June 22, 2026 **Author:** Andy **Content:** ### Key Takeaways - FY2026 max SNAP benefit: $298/month for 1 person, $994/month for a family of 4 - Benefits load on your Massachusetts EBT Card 1st–14th - The OBBB expanded work requirements to adults 55–64 and parents of teens — if you were exempt before, check whether you still are - Massachusetts uses BBCE at 200% FPL — more households qualify than in standard states - Apply or recertify at DTA Connect Massachusetts or call 877-382-2363 Massachusetts uses Broad-Based Categorical Eligibility at 200% of the poverty line, so more households qualify here than in states that stick to the federal floor. Either way, the fiscal year 2026 maximum benefit is the same nationwide: $994 a month for a family of four, up from $975 last year. The open question now is what USDA sets for FY2027, expected in late summer. But 2026 is a more complicated year than most for SNAP. The One Big Beautiful Bill (OBBB) made some of the biggest cuts to the program in its history — and some Massachusetts residents who qualified last year may not qualify now. Here’s what changed, what you can expect to receive, and what to do if you’re denied. Covered in this Article: [Toggle](#) - [2026 SNAP Benefit Amounts in Massachusetts](#2026_SNAP_Benefit_Amounts_in_Massachusetts) - [When Does SNAP Deposit to Your Massachusetts EBT Card?](#When_Does_SNAP_Deposit_to_Your_Massachusetts_EBT_Card) - [What’s Changed in 2026: OBBB Work Requirements](#Whats_Changed_in_2026_OBBB_Work_Requirements) - [How to Qualify for Massachusetts SNAP in 2026](#How_to_Qualify_for_Massachusetts_SNAP_in_2026) - [How to Apply](#How_to_Apply) - [What to Do If Your Massachusetts SNAP Application Is Denied](#What_to_Do_If_Your_Massachusetts_SNAP_Application_Is_Denied) - [What to Watch: Potential SNAP Changes Ahead](#What_to_Watch_Potential_SNAP_Changes_Ahead) - [Where Can You Use Your Massachusetts EBT Card?](#Where_Can_You_Use_Your_Massachusetts_EBT_Card) - [Other Benefits If You Receive Massachusetts SNAP](#Other_Benefits_If_You_Receive_Massachusetts_SNAP) - [Massachusetts SNAP: How Benefits Have Changed (2023–2026)](#Massachusetts_SNAP_How_Benefits_Have_Changed_2023%E2%80%932026) ## 2026 SNAP Benefit Amounts in Massachusetts Massachusetts uses the standard federal SNAP benefit schedule. Maximum monthly allotments for FY2026 (October 1, 2025 – September 30, 2026): Household SizeMax Monthly BenefitGross Income Limit (200% FPL)Net Income Limit (100% FPL)1 person$298$2,510/mo$1,255/mo2 people$546$3,406/mo$1,703/mo3 people$785$4,304/mo$2,152/mo4 people$994$5,200/mo$2,600/mo5 people$1,183$6,098/mo$3,049/mo6 people$1,421$6,994/mo$3,497/mo7 people$1,571$7,890/mo$3,945/mo8+ people$1,791+—— **Massachusetts (MA) uses BBCE at 200% FPL** — significantly more generous than the 130% federal floor. A family of four can qualify with gross income up to **$5,200/month**, compared to just $3,380/month in the most restrictive states. Most households receive less than the maximum. Your actual benefit depends on net income after deductions (rent, utilities, child care, medical expenses for elderly or disabled members). ### How Much Would a Family of 4 Actually Receive in Massachusetts? Here are two realistic examples to show the range: **Scenario A — Lower-income family** A family of 4 with gross monthly income of **$1,500** (one parent working part-time): - Gross income: $1,500 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$300 - Net income: $983 - 30% of net income: $295 - **Monthly SNAP benefit: $994 − $295 = $699** **Scenario B — Working family (moderate income)** A family of 4 with gross monthly income of **$3,200**: - Gross income: $3,200 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$640 - Net income: $2,343 - 30% of net income: $703 - **Monthly SNAP benefit: $994 − $703 = $291** The 20% earned income deduction rewards working households. Additional deductions for excess shelter costs, child care, or medical expenses (elderly/disabled) can increase your benefit further. ## When Does SNAP Deposit to Your Massachusetts EBT Card? Massachusetts (MA) distributes SNAP benefits based on the **last digit of your SSN**. Benefits load between the 1st–14th each month: SSN Last DigitDeposit Date11st22nd34th45th57th68th710th811th913th014th Your case number is on your approval letter or available through [DTA Connect Massachusetts](https://dtaconnect.eohhs.mass.gov). Call **877-382-2363** if you’re unsure of your deposit date — it stays the same each month once you’re approved. TANF cash benefits (if applicable) follow a separate deposit schedule. ## What’s Changed in 2026: OBBB Work Requirements The OBBB made several significant changes that took effect in late 2025 and early 2026: **Expanded work requirements**: Adults aged **55–64** who are able to work are now subject to SNAP work requirements for the first time. Previously the cutoff was 49. Parents whose youngest child is **over 14** are also now subject to work rules. **20 hours per week or 80 hours per month** — that’s the threshold for Able-Bodied Adults Without Dependents (ABAWDs) aged 18–64. Work, job training, or approved volunteer activity all count. Fail to meet the requirement and benefits are limited to **3 months in any 36-month period**. **State cost-sharing starting in 2028**: States will begin paying a share of benefit costs based on their SNAP payment error rate. This is new territory for all state budgets. **$186 billion in total federal SNAP cuts** over the next decade. If you were receiving SNAP in 2024 and haven’t recertified recently, check your current eligibility — the rules have shifted. ## How to Qualify for Massachusetts SNAP in 2026 **Income**: Gross income must be at or below 200% FPL (see table above). Net income (after deductions) must be at or below 100% FPL. **Residency**: Must be a Massachusetts resident. **Citizenship**: U.S. citizens and certain lawfully present immigrants qualify. Undocumented individuals are not eligible for federal SNAP benefits. **Work requirements**: Most able-bodied adults 18–64 must register for work and accept suitable employment. ABAWDs must meet the 80-hour/month work, training, or volunteer threshold. New in 2026: adults 55–64 are now included. ## How to Apply - **Online**: [DTA Connect Massachusetts](https://dtaconnect.eohhs.mass.gov) — fastest option, available 24/7 - **In person**: Any local Massachusetts Department of Transitional Assistance office - **Phone**: 877-382-2363 Massachusetts has up to **30 days** to process your application — or **7 days** if you qualify for expedited SNAP (very low income or resources). Benefits are backdated to your application date. Things can shift quickly. I’ll update this page when anything changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What to Do If Your Massachusetts SNAP Application Is Denied Denials are common and often appealable. The most frequent reasons are income slightly over the stated limit, missing documentation, and work requirement issues — all of which can be addressed. **Step 1**: Read your denial notice carefully. Massachusetts is required to explain the specific reason in writing. **Step 2**: Gather documentation that addresses the reason — recent pay stubs, rent receipts, proof of work activities, or a letter from your employer if hours changed. **Step 3**: Request a fair hearing within **90 days** of your denial. You can request one online at [DTA Connect Massachusetts](https://dtaconnect.eohhs.mass.gov), in person at your local Massachusetts Department of Transitional Assistance office, or by calling **877-382-2363**. **Step 4**: While your appeal is pending, you can continue receiving benefits if you were previously approved — request continued benefits when you file your hearing request. --- ## What to Watch: Potential SNAP Changes Ahead **State cost-sharing (FY2027–2028)**: Starting in FY2027, Massachusetts will begin paying a share of SNAP benefit costs — a first for all states. The percentage depends on Massachusetts’s payment error rate. If cost pressure builds, expect tighter eligibility administration at the state level. **Work requirement enforcement**: Federal guidance on the expanded age 55–64 rules is still evolving. States are implementing these in phases — if you’re in the newly covered age range, check with your caseworker. **BBCE at risk**: Massachusetts’s 200% FPL income limit narrowly survived the OBBB — earlier versions of the legislation would have eliminated it. If BBCE is eliminated in future legislation, the income limit for a family of 4 would drop from $5,200/month to $3,380/month. **FY2027 COLA adjustment**: Benefits update October 1. I’ll post FY2027 amounts here when USDA releases them (typically late summer 2026). Things can shift quickly — [Subscribe or follow us ↗](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates. --- ## Where Can You Use Your Massachusetts EBT Card? **In stores**: Any USDA-authorized retailer — including Walmart, Stop & Shop, Market Basket, Hannaford, Whole Foods (eligible items), ALDI, and most independent grocery stores. Look for the EBT/SNAP sign at checkout. **Online**: Massachusetts SNAP recipients can shop online through **Amazon Fresh** and **Walmart Grocery** — select SNAP/EBT as your payment method at checkout. Delivery fees are not covered by SNAP (only the groceries themselves). **Farmers markets**: Many Massachusetts farmers markets accept EBT. Some participate in the Double Up Food Bucks program, which matches SNAP dollars on locally-grown produce. **What SNAP does NOT cover**: Alcohol, tobacco, vitamins/supplements, hot prepared foods, fast food, pet food, household supplies, or hygiene products. ## Other Benefits If You Receive Massachusetts SNAP SNAP often unlocks access to other programs: - **Medicaid / CHIP**: Receiving SNAP can streamline Medicaid enrollment for adults and children. Apply through [DTA Connect Massachusetts](https://dtaconnect.eohhs.mass.gov). - **LIHEAP**: Low Income Home Energy Assistance helps with utility bills. Contact your local community action agency or call 2-1-1. - **WIC**: Nutrition support for pregnant women, new mothers, and children under 5. Separate application through your state health department. - **Summer EBT (SUN Bucks)**: Extra food benefits for school-age children during summer months. Check with your state for 2026 enrollment. - **Free/reduced school meals**: SNAP households automatically qualify. Register through your child’s school district. For a full overview of federal SNAP amounts and recent cuts, see the [2026 SNAP benefits guide](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). See also: [Massachusetts unemployment benefit amounts and eligibility rules](https://savingtoinvest.com/massachusetts-ma-department-of-unemployment-assistance-600-fpuc-and-pua-extended-benefits/). --- ## Massachusetts SNAP: How Benefits Have Changed (2023–2026) PeriodMax Benefit (Family of 4)Key DevelopmentFY2023 (Oct 2022 – Sep 2023)$939/monthPandemic Emergency Allotments ended — biggest single drop since the pandemicFY2024 (Oct 2023 – Sep 2024)$973/month~3.7% COLA increase; first full year post-pandemicFY2025 (Oct 2024 – Sep 2025)$975/monthMinimal ~0.2% increase; OBBB signed into lawFY2026 (Oct 2025 – Sep 2026)$994/month~2% increase; expanded work requirements take effect The end of Emergency Allotments in early 2023 was the biggest disruption in recent memory — some households that had received the maximum saw benefits drop to $23/month. FY2026 numbers are all standard formula, no pandemic additions. Frequently Asked Questions QHow much is SNAP in Massachusetts in 2026? AThe maximum monthly SNAP benefit in Massachusetts (MA) for FY2026 is $298 for a single person, $546 for 2 people, $785 for 3 people, $994 for a family of 4, and $1,183 for 5 people. Most households receive less than the maximum based on net income after deductions. QWhen does SNAP deposit to my Massachusetts EBT card? ABenefits load 1st–14th. Check your approval letter or DTA Connect Massachusetts for your exact deposit date. QWhat are the income limits for Massachusetts SNAP in 2026? AMassachusetts uses a gross income limit of 200% FPL — approximately $2,510/month for a single person or $5,200/month for a family of four. Net income (after deductions) must be at or below 100% FPL. QHow do I apply for SNAP in Massachusetts? AApply online at https://dtaconnect.eohhs.mass.gov, in person at a local Massachusetts Department of Transitional Assistance (DTA) office, or by calling 877-382-2363. Processing takes up to 30 days, or 7 days if you qualify for expedited benefits. QWhat can I buy with my Massachusetts EBT card? ASNAP covers groceries including produce, meat, dairy, bread, cereals, and packaged foods. You can shop in-store at most major grocery chains and online through Amazon Fresh and Walmart Grocery. SNAP does not cover alcohol, tobacco, hot prepared foods, vitamins, or non-food household items. QWhat do I do if my Massachusetts SNAP application is denied? ARequest a fair hearing within 90 days of your denial notice. Apply online at https://dtaconnect.eohhs.mass.gov, in person at a local office, or by calling 877-382-2363. The agency must explain the specific reason for denial — gather documentation addressing that reason before your hearing. QDid SNAP benefits change in 2026? AYes. The One Big Beautiful Bill (OBBB) expanded work requirements to include adults aged 55–64 and parents of children over 14. It cuts federal SNAP funding by $186 billion over 10 years and shifts some benefit costs to states starting in 2028. QCan I use my Massachusetts EBT card at Walmart or Amazon? AYes to both. Walmart accepts Massachusetts EBT in-store and online at walmart.com. Amazon Fresh also accepts SNAP/EBT online — select it as your payment method at checkout. Delivery fees are not covered, only eligible food items. **Categories:** Taxes and Retirement --- ### [Maryland SNAP Benefits: 2027 Outlook, Current 2026 Amounts Up to $994/Month](https://savingtoinvest.com/maryland-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) **Published:** June 22, 2026 **Author:** Andy **Content:** ### Key Takeaways - FY2026 max SNAP benefit: $298/month for 1 person, $994/month for a family of 4 - Benefits load on your Maryland Independence Card (EBT) 4th–23rd - The OBBB expanded work requirements to adults 55–64 and parents of teens — if you were exempt before, check whether you still are - Maryland uses BBCE at 200% FPL — more households qualify than in standard states - Apply or recertify at myDHHR Maryland or call 1-800-332-6347 A family of four on SNAP in Maryland can get up to $994 a month in fiscal year 2026 — up from $975 last year — deposited onto the Maryland Independence Card (EBT) 4th–23rd. The open question now is what USDA sets for FY2027, expected in late summer. But 2026 is a more complicated year than most for SNAP. The One Big Beautiful Bill (OBBB) made some of the biggest cuts to the program in its history — and some Maryland residents who qualified last year may not qualify now. Here’s what changed, what you can expect to receive, and what to do if you’re denied. Covered in this Article: [Toggle](#) - [2026 SNAP Benefit Amounts in Maryland](#2026_SNAP_Benefit_Amounts_in_Maryland) - [When Does SNAP Deposit to Your Maryland EBT Card?](#When_Does_SNAP_Deposit_to_Your_Maryland_EBT_Card) - [What’s Changed in 2026: OBBB Work Requirements](#Whats_Changed_in_2026_OBBB_Work_Requirements) - [How to Qualify for Maryland SNAP in 2026](#How_to_Qualify_for_Maryland_SNAP_in_2026) - [How to Apply](#How_to_Apply) - [What to Do If Your Maryland SNAP Application Is Denied](#What_to_Do_If_Your_Maryland_SNAP_Application_Is_Denied) - [What to Watch: Potential SNAP Changes Ahead](#What_to_Watch_Potential_SNAP_Changes_Ahead) - [Where Can You Use Your Maryland EBT Card?](#Where_Can_You_Use_Your_Maryland_EBT_Card) - [Other Benefits If You Receive Maryland SNAP](#Other_Benefits_If_You_Receive_Maryland_SNAP) - [Maryland SNAP: How Benefits Have Changed (2023–2026)](#Maryland_SNAP_How_Benefits_Have_Changed_2023%E2%80%932026) ## 2026 SNAP Benefit Amounts in Maryland Maryland uses the standard federal SNAP benefit schedule. Maximum monthly allotments for FY2026 (October 1, 2025 – September 30, 2026): Household SizeMax Monthly BenefitGross Income Limit (200% FPL)Net Income Limit (100% FPL)1 person$298$2,510/mo$1,255/mo2 people$546$3,406/mo$1,703/mo3 people$785$4,304/mo$2,152/mo4 people$994$5,200/mo$2,600/mo5 people$1,183$6,098/mo$3,049/mo6 people$1,421$6,994/mo$3,497/mo7 people$1,571$7,890/mo$3,945/mo8+ people$1,791+—— **Maryland (MD) uses BBCE at 200% FPL** — significantly more generous than the 130% federal floor. A family of four can qualify with gross income up to **$5,200/month**, compared to just $3,380/month in the most restrictive states. Most households receive less than the maximum. Your actual benefit depends on net income after deductions (rent, utilities, child care, medical expenses for elderly or disabled members). ### How Much Would a Family of 4 Actually Receive in Maryland? Here are two realistic examples to show the range: **Scenario A — Lower-income family** A family of 4 with gross monthly income of **$1,500** (one parent working part-time): - Gross income: $1,500 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$300 - Net income: $983 - 30% of net income: $295 - **Monthly SNAP benefit: $994 − $295 = $699** **Scenario B — Working family (moderate income)** A family of 4 with gross monthly income of **$3,200**: - Gross income: $3,200 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$640 - Net income: $2,343 - 30% of net income: $703 - **Monthly SNAP benefit: $994 − $703 = $291** The 20% earned income deduction rewards working households. Additional deductions for excess shelter costs, child care, or medical expenses (elderly/disabled) can increase your benefit further. ## When Does SNAP Deposit to Your Maryland EBT Card? Maryland (MD) distributes SNAP benefits based on the **first letter of your last name**. Benefits load between the 4th–23rd: Last Name Starts WithDeposit DateA–E4thF–J9thK–N14thO–T18thU–Z23rd Your case number is on your approval letter or available through [myDHHR Maryland](https://mydhhr.maryland.gov). Call **1-800-332-6347** if you’re unsure of your deposit date — it stays the same each month once you’re approved. TANF cash benefits (if applicable) follow a separate deposit schedule. ## What’s Changed in 2026: OBBB Work Requirements The OBBB made several significant changes that took effect in late 2025 and early 2026: **Expanded work requirements**: Adults aged **55–64** who are able to work are now subject to SNAP work requirements for the first time. Previously the cutoff was 49. Parents whose youngest child is **over 14** are also now subject to work rules. **20 hours per week or 80 hours per month** — that’s the threshold for Able-Bodied Adults Without Dependents (ABAWDs) aged 18–64. Work, job training, or approved volunteer activity all count. Fail to meet the requirement and benefits are limited to **3 months in any 36-month period**. **State cost-sharing starting in 2028**: States will begin paying a share of benefit costs based on their SNAP payment error rate. This is new territory for all state budgets. **$186 billion in total federal SNAP cuts** over the next decade. If you were receiving SNAP in 2024 and haven’t recertified recently, check your current eligibility — the rules have shifted. ## How to Qualify for Maryland SNAP in 2026 **Income**: Gross income must be at or below 200% FPL (see table above). Net income (after deductions) must be at or below 100% FPL. **Residency**: Must be a Maryland resident. **Citizenship**: U.S. citizens and certain lawfully present immigrants qualify. Undocumented individuals are not eligible for federal SNAP benefits. **Work requirements**: Most able-bodied adults 18–64 must register for work and accept suitable employment. ABAWDs must meet the 80-hour/month work, training, or volunteer threshold. New in 2026: adults 55–64 are now included. ## How to Apply - **Online**: [myDHHR Maryland](https://mydhhr.maryland.gov) — fastest option, available 24/7 - **In person**: Any local Maryland Department of Human Services office - **Phone**: 1-800-332-6347 Maryland has up to **30 days** to process your application — or **7 days** if you qualify for expedited SNAP (very low income or resources). Benefits are backdated to your application date. Things can shift quickly. I’ll update this page when anything changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What to Do If Your Maryland SNAP Application Is Denied Denials are common and often appealable. The most frequent reasons are income slightly over the stated limit, missing documentation, and work requirement issues — all of which can be addressed. **Step 1**: Read your denial notice carefully. Maryland is required to explain the specific reason in writing. **Step 2**: Gather documentation that addresses the reason — recent pay stubs, rent receipts, proof of work activities, or a letter from your employer if hours changed. **Step 3**: Request a fair hearing within **90 days** of your denial. You can request one online at [myDHHR Maryland](https://mydhhr.maryland.gov), in person at your local Maryland Department of Human Services office, or by calling **1-800-332-6347**. **Step 4**: While your appeal is pending, you can continue receiving benefits if you were previously approved — request continued benefits when you file your hearing request. --- ## What to Watch: Potential SNAP Changes Ahead **State cost-sharing (FY2027–2028)**: Starting in FY2027, Maryland will begin paying a share of SNAP benefit costs — a first for all states. The percentage depends on Maryland’s payment error rate. If cost pressure builds, expect tighter eligibility administration at the state level. **Work requirement enforcement**: Federal guidance on the expanded age 55–64 rules is still evolving. States are implementing these in phases — if you’re in the newly covered age range, check with your caseworker. **BBCE at risk**: Maryland’s 200% FPL income limit narrowly survived the OBBB — earlier versions of the legislation would have eliminated it. If BBCE is eliminated in future legislation, the income limit for a family of 4 would drop from $5,200/month to $3,380/month. **FY2027 COLA adjustment**: Benefits update October 1. I’ll post FY2027 amounts here when USDA releases them (typically late summer 2026). Things can shift quickly — [Subscribe or follow us ↗](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates. --- ## Where Can You Use Your Maryland EBT Card? **In stores**: Any USDA-authorized retailer — including Walmart, Giant Food, Safeway, ShopRite, ALDI, Harris Teeter, and most independent grocery stores. Look for the EBT/SNAP sign at checkout. **Online**: Maryland SNAP recipients can shop online through **Amazon Fresh** and **Walmart Grocery** — select SNAP/EBT as your payment method at checkout. Delivery fees are not covered by SNAP (only the groceries themselves). **Farmers markets**: Many Maryland farmers markets accept EBT. Some participate in the Double Up Food Bucks program, which matches SNAP dollars on locally-grown produce. **What SNAP does NOT cover**: Alcohol, tobacco, vitamins/supplements, hot prepared foods, fast food, pet food, household supplies, or hygiene products. ## Other Benefits If You Receive Maryland SNAP SNAP often unlocks access to other programs: - **Medicaid / CHIP**: Receiving SNAP can streamline Medicaid enrollment for adults and children. Apply through [myDHHR Maryland](https://mydhhr.maryland.gov). - **LIHEAP**: Low Income Home Energy Assistance helps with utility bills. Contact your local community action agency or call 2-1-1. - **WIC**: Nutrition support for pregnant women, new mothers, and children under 5. Separate application through your state health department. - **Summer EBT (SUN Bucks)**: Extra food benefits for school-age children during summer months. Check with your state for 2026 enrollment. - **Free/reduced school meals**: SNAP households automatically qualify. Register through your child’s school district. For a full overview of federal SNAP amounts and recent cuts, see the [2026 SNAP benefits guide](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). See also: [Maryland unemployment benefit amounts and eligibility rules](https://savingtoinvest.com/maryland-dui-unemployment-benefits-news-and-updates-on-extended-benefit-programs-300-lwa-pua-peuc-and-600-fpuc-beacon-filing-system/). --- ## Maryland SNAP: How Benefits Have Changed (2023–2026) PeriodMax Benefit (Family of 4)Key DevelopmentFY2023 (Oct 2022 – Sep 2023)$939/monthPandemic Emergency Allotments ended — biggest single drop since the pandemicFY2024 (Oct 2023 – Sep 2024)$973/month~3.7% COLA increase; first full year post-pandemicFY2025 (Oct 2024 – Sep 2025)$975/monthMinimal ~0.2% increase; OBBB signed into lawFY2026 (Oct 2025 – Sep 2026)$994/month~2% increase; expanded work requirements take effect The end of Emergency Allotments in early 2023 was the biggest disruption in recent memory — some households that had received the maximum saw benefits drop to $23/month. FY2026 numbers are all standard formula, no pandemic additions. Frequently Asked Questions QHow much is SNAP in Maryland in 2026? AThe maximum monthly SNAP benefit in Maryland (MD) for FY2026 is $298 for a single person, $546 for 2 people, $785 for 3 people, $994 for a family of 4, and $1,183 for 5 people. Most households receive less than the maximum based on net income after deductions. QWhen does SNAP deposit to my Maryland EBT card? ABenefits load 4th–23rd. Check your approval letter or myDHHR Maryland for your exact deposit date. QWhat are the income limits for Maryland SNAP in 2026? AMaryland uses a gross income limit of 200% FPL — approximately $2,510/month for a single person or $5,200/month for a family of four. Net income (after deductions) must be at or below 100% FPL. QHow do I apply for SNAP in Maryland? AApply online at https://mydhhr.maryland.gov, in person at a local Maryland Department of Human Services (DHS) office, or by calling 1-800-332-6347. Processing takes up to 30 days, or 7 days if you qualify for expedited benefits. QWhat can I buy with my Maryland EBT card? ASNAP covers groceries including produce, meat, dairy, bread, cereals, and packaged foods. You can shop in-store at most major grocery chains and online through Amazon Fresh and Walmart Grocery. SNAP does not cover alcohol, tobacco, hot prepared foods, vitamins, or non-food household items. QWhat do I do if my Maryland SNAP application is denied? ARequest a fair hearing within 90 days of your denial notice. Apply online at https://mydhhr.maryland.gov, in person at a local office, or by calling 1-800-332-6347. The agency must explain the specific reason for denial — gather documentation addressing that reason before your hearing. QDid SNAP benefits change in 2026? AYes. The One Big Beautiful Bill (OBBB) expanded work requirements to include adults aged 55–64 and parents of children over 14. It cuts federal SNAP funding by $186 billion over 10 years and shifts some benefit costs to states starting in 2028. QCan I use my Maryland EBT card at Walmart or Amazon? AYes to both. Walmart accepts Maryland EBT in-store and online at walmart.com. Amazon Fresh also accepts SNAP/EBT online — select it as your payment method at checkout. Delivery fees are not covered, only eligible food items. **Categories:** Taxes and Retirement --- ### [Maine SNAP Benefits: 2027 Outlook, Current 2026 Amounts Up to $994/Month](https://savingtoinvest.com/maine-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) **Published:** June 22, 2026 **Author:** Andy **Content:** ### Key Takeaways - FY2026 max SNAP benefit: $298/month for 1 person, $994/month for a family of 4 - Benefits load on your Maine EBT Card 10th–14th - The OBBB expanded work requirements to adults 55–64 and parents of teens — if you were exempt before, check whether you still are - Maine uses BBCE at 200% FPL — more households qualify than in standard states - Apply or recertify at Maine DHHS Benefits or call 207-624-4100 or 2-1-1 Maine’s SNAP benefits load onto your Maine EBT Card 10th–14th. The maximum for a family of four is $994 a month in fiscal year 2026, up from $975 last year. The open question now is what USDA sets for FY2027, expected in late summer. But 2026 is a more complicated year than most for SNAP. The One Big Beautiful Bill (OBBB) made some of the biggest cuts to the program in its history — and some Maine residents who qualified last year may not qualify now. Here’s what changed, what you can expect to receive, and what to do if you’re denied. Covered in this Article: [Toggle](#) - [2026 SNAP Benefit Amounts in Maine](#2026_SNAP_Benefit_Amounts_in_Maine) - [When Does SNAP Deposit to Your Maine EBT Card?](#When_Does_SNAP_Deposit_to_Your_Maine_EBT_Card) - [What’s Changed in 2026: OBBB Work Requirements](#Whats_Changed_in_2026_OBBB_Work_Requirements) - [How to Qualify for Maine SNAP in 2026](#How_to_Qualify_for_Maine_SNAP_in_2026) - [How to Apply](#How_to_Apply) - [What to Do If Your Maine SNAP Application Is Denied](#What_to_Do_If_Your_Maine_SNAP_Application_Is_Denied) - [What to Watch: Potential SNAP Changes Ahead](#What_to_Watch_Potential_SNAP_Changes_Ahead) - [Where Can You Use Your Maine EBT Card?](#Where_Can_You_Use_Your_Maine_EBT_Card) - [Other Benefits If You Receive Maine SNAP](#Other_Benefits_If_You_Receive_Maine_SNAP) - [Maine SNAP: How Benefits Have Changed (2023–2026)](#Maine_SNAP_How_Benefits_Have_Changed_2023%E2%80%932026) ## 2026 SNAP Benefit Amounts in Maine Maine uses the standard federal SNAP benefit schedule. Maximum monthly allotments for FY2026 (October 1, 2025 – September 30, 2026): Household SizeMax Monthly BenefitGross Income Limit (200% FPL)Net Income Limit (100% FPL)1 person$298$2,510/mo$1,255/mo2 people$546$3,406/mo$1,703/mo3 people$785$4,304/mo$2,152/mo4 people$994$5,200/mo$2,600/mo5 people$1,183$6,098/mo$3,049/mo6 people$1,421$6,994/mo$3,497/mo7 people$1,571$7,890/mo$3,945/mo8+ people$1,791+—— **Maine (ME) uses BBCE at 200% FPL** — significantly more generous than the 130% federal floor. A family of four can qualify with gross income up to **$5,200/month**, compared to just $3,380/month in the most restrictive states. Most households receive less than the maximum. Your actual benefit depends on net income after deductions (rent, utilities, child care, medical expenses for elderly or disabled members). ### How Much Would a Family of 4 Actually Receive in Maine? Here are two realistic examples to show the range: **Scenario A — Lower-income family** A family of 4 with gross monthly income of **$1,500** (one parent working part-time): - Gross income: $1,500 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$300 - Net income: $983 - 30% of net income: $295 - **Monthly SNAP benefit: $994 − $295 = $699** **Scenario B — Working family (moderate income)** A family of 4 with gross monthly income of **$3,200**: - Gross income: $3,200 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$640 - Net income: $2,343 - 30% of net income: $703 - **Monthly SNAP benefit: $994 − $703 = $291** The 20% earned income deduction rewards working households. Additional deductions for excess shelter costs, child care, or medical expenses (elderly/disabled) can increase your benefit further. ## When Does SNAP Deposit to Your Maine EBT Card? Maine (ME) distributes SNAP benefits based on the **last digit of your case number**. Benefits load between the 10th–14th each month: Case # Last DigitDeposit Date110th210th311th411th512th612th713th813th914th014th Your case number is on your approval letter or available through [Maine DHHS Benefits](https://www.maine.gov/dhhs/snap). Call **207-624-4100 or 2-1-1** if you’re unsure of your deposit date — it stays the same each month once you’re approved. TANF cash benefits (if applicable) follow a separate deposit schedule. ## What’s Changed in 2026: OBBB Work Requirements The OBBB made several significant changes that took effect in late 2025 and early 2026: **Expanded work requirements**: Adults aged **55–64** who are able to work are now subject to SNAP work requirements for the first time. Previously the cutoff was 49. Parents whose youngest child is **over 14** are also now subject to work rules. **20 hours per week or 80 hours per month** — that’s the threshold for Able-Bodied Adults Without Dependents (ABAWDs) aged 18–64. Work, job training, or approved volunteer activity all count. Fail to meet the requirement and benefits are limited to **3 months in any 36-month period**. **State cost-sharing starting in 2028**: States will begin paying a share of benefit costs based on their SNAP payment error rate. This is new territory for all state budgets. **$186 billion in total federal SNAP cuts** over the next decade. If you were receiving SNAP in 2024 and haven’t recertified recently, check your current eligibility — the rules have shifted. ## How to Qualify for Maine SNAP in 2026 **Income**: Gross income must be at or below 200% FPL (see table above). Net income (after deductions) must be at or below 100% FPL. **Residency**: Must be a Maine resident. **Citizenship**: U.S. citizens and certain lawfully present immigrants qualify. Undocumented individuals are not eligible for federal SNAP benefits. **Work requirements**: Most able-bodied adults 18–64 must register for work and accept suitable employment. ABAWDs must meet the 80-hour/month work, training, or volunteer threshold. New in 2026: adults 55–64 are now included. ## How to Apply - **Online**: [Maine DHHS Benefits](https://www.maine.gov/dhhs/snap) — fastest option, available 24/7 - **In person**: Any local Maine Department of Health and Human Services office - **Phone**: 207-624-4100 or 2-1-1 Maine has up to **30 days** to process your application — or **7 days** if you qualify for expedited SNAP (very low income or resources). Benefits are backdated to your application date. Things can shift quickly. I’ll update this page when anything changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What to Do If Your Maine SNAP Application Is Denied Denials are common and often appealable. The most frequent reasons are income slightly over the stated limit, missing documentation, and work requirement issues — all of which can be addressed. **Step 1**: Read your denial notice carefully. Maine is required to explain the specific reason in writing. **Step 2**: Gather documentation that addresses the reason — recent pay stubs, rent receipts, proof of work activities, or a letter from your employer if hours changed. **Step 3**: Request a fair hearing within **90 days** of your denial. You can request one online at [Maine DHHS Benefits](https://www.maine.gov/dhhs/snap), in person at your local Maine Department of Health and Human Services office, or by calling **207-624-4100 or 2-1-1**. **Step 4**: While your appeal is pending, you can continue receiving benefits if you were previously approved — request continued benefits when you file your hearing request. --- ## What to Watch: Potential SNAP Changes Ahead **State cost-sharing (FY2027–2028)**: Starting in FY2027, Maine will begin paying a share of SNAP benefit costs — a first for all states. The percentage depends on Maine’s payment error rate. If cost pressure builds, expect tighter eligibility administration at the state level. **Work requirement enforcement**: Federal guidance on the expanded age 55–64 rules is still evolving. States are implementing these in phases — if you’re in the newly covered age range, check with your caseworker. **BBCE at risk**: Maine’s 200% FPL income limit narrowly survived the OBBB — earlier versions of the legislation would have eliminated it. If BBCE is eliminated in future legislation, the income limit for a family of 4 would drop from $5,200/month to $3,380/month. **FY2027 COLA adjustment**: Benefits update October 1. I’ll post FY2027 amounts here when USDA releases them (typically late summer 2026). Things can shift quickly — [Subscribe or follow us ↗](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates. --- ## Where Can You Use Your Maine EBT Card? **In stores**: Any USDA-authorized retailer — including Walmart, Hannaford, Shaw’s, Market Basket, Aldi, and most independent grocery stores. Look for the EBT/SNAP sign at checkout. **Online**: Maine SNAP recipients can shop online through **Amazon Fresh** and **Walmart Grocery** — select SNAP/EBT as your payment method at checkout. Delivery fees are not covered by SNAP (only the groceries themselves). **Farmers markets**: Many Maine farmers markets accept EBT. Some participate in the Double Up Food Bucks program, which matches SNAP dollars on locally-grown produce. **What SNAP does NOT cover**: Alcohol, tobacco, vitamins/supplements, hot prepared foods, fast food, pet food, household supplies, or hygiene products. ## Other Benefits If You Receive Maine SNAP SNAP often unlocks access to other programs: - **Medicaid / CHIP**: Receiving SNAP can streamline Medicaid enrollment for adults and children. Apply through [Maine DHHS Benefits](https://www.maine.gov/dhhs/snap). - **LIHEAP**: Low Income Home Energy Assistance helps with utility bills. Contact your local community action agency or call 2-1-1. - **WIC**: Nutrition support for pregnant women, new mothers, and children under 5. Separate application through your state health department. - **Summer EBT (SUN Bucks)**: Extra food benefits for school-age children during summer months. Check with your state for 2026 enrollment. - **Free/reduced school meals**: SNAP households automatically qualify. Register through your child’s school district. For a full overview of federal SNAP amounts and recent cuts, see the [2026 SNAP benefits guide](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). See also: [Maine unemployment benefit amounts and eligibility rules](https://savingtoinvest.com/maine-unemployment-benefits/). --- ## Maine SNAP: How Benefits Have Changed (2023–2026) PeriodMax Benefit (Family of 4)Key DevelopmentFY2023 (Oct 2022 – Sep 2023)$939/monthPandemic Emergency Allotments ended — biggest single drop since the pandemicFY2024 (Oct 2023 – Sep 2024)$973/month~3.7% COLA increase; first full year post-pandemicFY2025 (Oct 2024 – Sep 2025)$975/monthMinimal ~0.2% increase; OBBB signed into lawFY2026 (Oct 2025 – Sep 2026)$994/month~2% increase; expanded work requirements take effect The end of Emergency Allotments in early 2023 was the biggest disruption in recent memory — some households that had received the maximum saw benefits drop to $23/month. FY2026 numbers are all standard formula, no pandemic additions. Frequently Asked Questions QHow much is SNAP in Maine in 2026? AThe maximum monthly SNAP benefit in Maine (ME) for FY2026 is $298 for a single person, $546 for 2 people, $785 for 3 people, $994 for a family of 4, and $1,183 for 5 people. Most households receive less than the maximum based on net income after deductions. QWhen does SNAP deposit to my Maine EBT card? ABenefits load 10th–14th. Check your approval letter or Maine DHHS Benefits for your exact deposit date. QWhat are the income limits for Maine SNAP in 2026? AMaine uses a gross income limit of 200% FPL — approximately $2,510/month for a single person or $5,200/month for a family of four. Net income (after deductions) must be at or below 100% FPL. QHow do I apply for SNAP in Maine? AApply online at https://www.maine.gov/dhhs/snap, in person at a local Maine Department of Health and Human Services (DHHS) office, or by calling 207-624-4100 or 2-1-1. Processing takes up to 30 days, or 7 days if you qualify for expedited benefits. QWhat can I buy with my Maine EBT card? ASNAP covers groceries including produce, meat, dairy, bread, cereals, and packaged foods. You can shop in-store at most major grocery chains and online through Amazon Fresh and Walmart Grocery. SNAP does not cover alcohol, tobacco, hot prepared foods, vitamins, or non-food household items. QWhat do I do if my Maine SNAP application is denied? ARequest a fair hearing within 90 days of your denial notice. Apply online at https://www.maine.gov/dhhs/snap, in person at a local office, or by calling 207-624-4100 or 2-1-1. The agency must explain the specific reason for denial — gather documentation addressing that reason before your hearing. QDid SNAP benefits change in 2026? AYes. The One Big Beautiful Bill (OBBB) expanded work requirements to include adults aged 55–64 and parents of children over 14. It cuts federal SNAP funding by $186 billion over 10 years and shifts some benefit costs to states starting in 2028. QCan I use my Maine EBT card at Walmart or Amazon? AYes to both. Walmart accepts Maine EBT in-store and online at walmart.com. Amazon Fresh also accepts SNAP/EBT online — select it as your payment method at checkout. Delivery fees are not covered, only eligible food items. **Categories:** Taxes and Retirement --- ### [Louisiana SNAP Benefits: 2027 Outlook, Current 2026 Amounts Up to $994/Month](https://savingtoinvest.com/louisiana-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) **Published:** June 22, 2026 **Author:** Andy **Content:** ### Key Takeaways - FY2026 max SNAP benefit: $298/month for 1 person, $994/month for a family of 4 - Benefits load on your Louisiana Purchase Card (EBT) 1st–23rd - The OBBB expanded work requirements to adults 55–64 and parents of teens — if you were exempt before, check whether you still are - Louisiana uses BBCE at 200% FPL — more households qualify than in standard states - Apply or recertify at Louisiana DCFS Benefits or call 1-888-524-3578 Louisiana DCFS Benefits handles SNAP applications and recertifications in Louisiana, with benefits loading onto the Louisiana Purchase Card (EBT) 1st–23rd. Fiscal year 2026’s maximum for a family of four is $994 a month, up $19 from last year’s $975. The open question now is what USDA sets for FY2027, expected in late summer. But 2026 is a more complicated year than most for SNAP. The One Big Beautiful Bill (OBBB) made some of the biggest cuts to the program in its history — and some Louisiana residents who qualified last year may not qualify now. Here’s what changed, what you can expect to receive, and what to do if you’re denied. Covered in this Article: [Toggle](#) - [2026 SNAP Benefit Amounts in Louisiana](#2026_SNAP_Benefit_Amounts_in_Louisiana) - [When Does SNAP Deposit to Your Louisiana EBT Card?](#When_Does_SNAP_Deposit_to_Your_Louisiana_EBT_Card) - [What’s Changed in 2026: OBBB Work Requirements](#Whats_Changed_in_2026_OBBB_Work_Requirements) - [How to Qualify for Louisiana SNAP in 2026](#How_to_Qualify_for_Louisiana_SNAP_in_2026) - [How to Apply](#How_to_Apply) - [What to Do If Your Louisiana SNAP Application Is Denied](#What_to_Do_If_Your_Louisiana_SNAP_Application_Is_Denied) - [What to Watch: Potential SNAP Changes Ahead](#What_to_Watch_Potential_SNAP_Changes_Ahead) - [Where Can You Use Your Louisiana EBT Card?](#Where_Can_You_Use_Your_Louisiana_EBT_Card) - [Other Benefits If You Receive Louisiana SNAP](#Other_Benefits_If_You_Receive_Louisiana_SNAP) - [Louisiana SNAP: How Benefits Have Changed (2023–2026)](#Louisiana_SNAP_How_Benefits_Have_Changed_2023%E2%80%932026) ## 2026 SNAP Benefit Amounts in Louisiana Louisiana uses the standard federal SNAP benefit schedule. Maximum monthly allotments for FY2026 (October 1, 2025 – September 30, 2026): Household SizeMax Monthly BenefitGross Income Limit (200% FPL)Net Income Limit (100% FPL)1 person$298$2,510/mo$1,255/mo2 people$546$3,406/mo$1,703/mo3 people$785$4,304/mo$2,152/mo4 people$994$5,200/mo$2,600/mo5 people$1,183$6,098/mo$3,049/mo6 people$1,421$6,994/mo$3,497/mo7 people$1,571$7,890/mo$3,945/mo8+ people$1,791+—— **Louisiana (LA) uses BBCE at 200% FPL** — significantly more generous than the 130% federal floor. A family of four can qualify with gross income up to **$5,200/month**, compared to just $3,380/month in the most restrictive states. Most households receive less than the maximum. Your actual benefit depends on net income after deductions (rent, utilities, child care, medical expenses for elderly or disabled members). ### How Much Would a Family of 4 Actually Receive in Louisiana? Here are two realistic examples to show the range: **Scenario A — Lower-income family** A family of 4 with gross monthly income of **$1,500** (one parent working part-time): - Gross income: $1,500 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$300 - Net income: $983 - 30% of net income: $295 - **Monthly SNAP benefit: $994 − $295 = $699** **Scenario B — Working family (moderate income)** A family of 4 with gross monthly income of **$3,200**: - Gross income: $3,200 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$640 - Net income: $2,343 - 30% of net income: $703 - **Monthly SNAP benefit: $994 − $703 = $291** The 20% earned income deduction rewards working households. Additional deductions for excess shelter costs, child care, or medical expenses (elderly/disabled) can increase your benefit further. ## When Does SNAP Deposit to Your Louisiana EBT Card? Louisiana (LA) distributes SNAP benefits based on the **last digit of your SSN**. Benefits load between the 1st–23rd each month: SSN Last DigitDeposit Date11st23rd36th48th511th613th716th818th921st023rd Your case number is on your approval letter or available through [Louisiana DCFS Benefits](https://dcfs.louisiana.gov/snap). Call **1-888-524-3578** if you’re unsure of your deposit date — it stays the same each month once you’re approved. TANF cash benefits (if applicable) follow a separate deposit schedule. ## What’s Changed in 2026: OBBB Work Requirements The OBBB made several significant changes that took effect in late 2025 and early 2026: **Expanded work requirements**: Adults aged **55–64** who are able to work are now subject to SNAP work requirements for the first time. Previously the cutoff was 49. Parents whose youngest child is **over 14** are also now subject to work rules. **20 hours per week or 80 hours per month** — that’s the threshold for Able-Bodied Adults Without Dependents (ABAWDs) aged 18–64. Work, job training, or approved volunteer activity all count. Fail to meet the requirement and benefits are limited to **3 months in any 36-month period**. **State cost-sharing starting in 2028**: States will begin paying a share of benefit costs based on their SNAP payment error rate. This is new territory for all state budgets. **$186 billion in total federal SNAP cuts** over the next decade. If you were receiving SNAP in 2024 and haven’t recertified recently, check your current eligibility — the rules have shifted. ## How to Qualify for Louisiana SNAP in 2026 **Income**: Gross income must be at or below 200% FPL (see table above). Net income (after deductions) must be at or below 100% FPL. **Residency**: Must be a Louisiana resident. **Citizenship**: U.S. citizens and certain lawfully present immigrants qualify. Undocumented individuals are not eligible for federal SNAP benefits. **Work requirements**: Most able-bodied adults 18–64 must register for work and accept suitable employment. ABAWDs must meet the 80-hour/month work, training, or volunteer threshold. New in 2026: adults 55–64 are now included. ## How to Apply - **Online**: [Louisiana DCFS Benefits](https://dcfs.louisiana.gov/snap) — fastest option, available 24/7 - **In person**: Any local Louisiana Department of Children and Family Services office - **Phone**: 1-888-524-3578 Louisiana has up to **30 days** to process your application — or **7 days** if you qualify for expedited SNAP (very low income or resources). Benefits are backdated to your application date. Things can shift quickly. I’ll update this page when anything changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What to Do If Your Louisiana SNAP Application Is Denied Denials are common and often appealable. The most frequent reasons are income slightly over the stated limit, missing documentation, and work requirement issues — all of which can be addressed. **Step 1**: Read your denial notice carefully. Louisiana is required to explain the specific reason in writing. **Step 2**: Gather documentation that addresses the reason — recent pay stubs, rent receipts, proof of work activities, or a letter from your employer if hours changed. **Step 3**: Request a fair hearing within **90 days** of your denial. You can request one online at [Louisiana DCFS Benefits](https://dcfs.louisiana.gov/snap), in person at your local Louisiana Department of Children and Family Services office, or by calling **1-888-524-3578**. **Step 4**: While your appeal is pending, you can continue receiving benefits if you were previously approved — request continued benefits when you file your hearing request. --- ## What to Watch: Potential SNAP Changes Ahead **State cost-sharing (FY2027–2028)**: Starting in FY2027, Louisiana will begin paying a share of SNAP benefit costs — a first for all states. The percentage depends on Louisiana’s payment error rate. If cost pressure builds, expect tighter eligibility administration at the state level. **Work requirement enforcement**: Federal guidance on the expanded age 55–64 rules is still evolving. States are implementing these in phases — if you’re in the newly covered age range, check with your caseworker. **BBCE at risk**: Louisiana’s 200% FPL income limit narrowly survived the OBBB — earlier versions of the legislation would have eliminated it. If BBCE is eliminated in future legislation, the income limit for a family of 4 would drop from $5,200/month to $3,380/month. **FY2027 COLA adjustment**: Benefits update October 1. I’ll post FY2027 amounts here when USDA releases them (typically late summer 2026). Things can shift quickly — [Subscribe or follow us ↗](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates. --- ## Where Can You Use Your Louisiana EBT Card? **In stores**: Any USDA-authorized retailer — including Walmart, Rouse’s Markets, Winn-Dixie, Brookshire Grocery, ALDI, and most independent grocery stores. Look for the EBT/SNAP sign at checkout. **Online**: Louisiana SNAP recipients can shop online through **Amazon Fresh** and **Walmart Grocery** — select SNAP/EBT as your payment method at checkout. Delivery fees are not covered by SNAP (only the groceries themselves). **Farmers markets**: Many Louisiana farmers markets accept EBT. Some participate in the Double Up Food Bucks program, which matches SNAP dollars on locally-grown produce. **What SNAP does NOT cover**: Alcohol, tobacco, vitamins/supplements, hot prepared foods, fast food, pet food, household supplies, or hygiene products. ## Other Benefits If You Receive Louisiana SNAP SNAP often unlocks access to other programs: - **Medicaid / CHIP**: Receiving SNAP can streamline Medicaid enrollment for adults and children. Apply through [Louisiana DCFS Benefits](https://dcfs.louisiana.gov/snap). - **LIHEAP**: Low Income Home Energy Assistance helps with utility bills. Contact your local community action agency or call 2-1-1. - **WIC**: Nutrition support for pregnant women, new mothers, and children under 5. Separate application through your state health department. - **Summer EBT (SUN Bucks)**: Extra food benefits for school-age children during summer months. Check with your state for 2026 enrollment. - **Free/reduced school meals**: SNAP households automatically qualify. Register through your child’s school district. For a full overview of federal SNAP amounts and recent cuts, see the [2026 SNAP benefits guide](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). See also: [Louisiana unemployment benefit amounts and eligibility rules](https://savingtoinvest.com/louisiana-unemployment-benefits/). --- ## Louisiana SNAP: How Benefits Have Changed (2023–2026) PeriodMax Benefit (Family of 4)Key DevelopmentFY2023 (Oct 2022 – Sep 2023)$939/monthPandemic Emergency Allotments ended — biggest single drop since the pandemicFY2024 (Oct 2023 – Sep 2024)$973/month~3.7% COLA increase; first full year post-pandemicFY2025 (Oct 2024 – Sep 2025)$975/monthMinimal ~0.2% increase; OBBB signed into lawFY2026 (Oct 2025 – Sep 2026)$994/month~2% increase; expanded work requirements take effect The end of Emergency Allotments in early 2023 was the biggest disruption in recent memory — some households that had received the maximum saw benefits drop to $23/month. FY2026 numbers are all standard formula, no pandemic additions. Frequently Asked Questions QHow much is SNAP in Louisiana in 2026? AThe maximum monthly SNAP benefit in Louisiana (LA) for FY2026 is $298 for a single person, $546 for 2 people, $785 for 3 people, $994 for a family of 4, and $1,183 for 5 people. Most households receive less than the maximum based on net income after deductions. QWhen does SNAP deposit to my Louisiana EBT card? ABenefits load 1st–23rd. Check your approval letter or Louisiana DCFS Benefits for your exact deposit date. QWhat are the income limits for Louisiana SNAP in 2026? ALouisiana uses a gross income limit of 200% FPL — approximately $2,510/month for a single person or $5,200/month for a family of four. Net income (after deductions) must be at or below 100% FPL. QHow do I apply for SNAP in Louisiana? AApply online at https://dcfs.louisiana.gov/snap, in person at a local Louisiana Department of Children and Family Services (DCFS) office, or by calling 1-888-524-3578. Processing takes up to 30 days, or 7 days if you qualify for expedited benefits. QWhat can I buy with my Louisiana EBT card? ASNAP covers groceries including produce, meat, dairy, bread, cereals, and packaged foods. You can shop in-store at most major grocery chains and online through Amazon Fresh and Walmart Grocery. SNAP does not cover alcohol, tobacco, hot prepared foods, vitamins, or non-food household items. QWhat do I do if my Louisiana SNAP application is denied? ARequest a fair hearing within 90 days of your denial notice. Apply online at https://dcfs.louisiana.gov/snap, in person at a local office, or by calling 1-888-524-3578. The agency must explain the specific reason for denial — gather documentation addressing that reason before your hearing. QDid SNAP benefits change in 2026? AYes. The One Big Beautiful Bill (OBBB) expanded work requirements to include adults aged 55–64 and parents of children over 14. It cuts federal SNAP funding by $186 billion over 10 years and shifts some benefit costs to states starting in 2028. QCan I use my Louisiana EBT card at Walmart or Amazon? AYes to both. Walmart accepts Louisiana EBT in-store and online at walmart.com. Amazon Fresh also accepts SNAP/EBT online — select it as your payment method at checkout. Delivery fees are not covered, only eligible food items. **Categories:** Taxes and Retirement --- ### [Kentucky SNAP Benefits: 2027 Outlook, Current 2026 Amounts Up to $994/Month](https://savingtoinvest.com/kentucky-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) **Published:** June 22, 2026 **Author:** Andy **Content:** ### Key Takeaways - FY2026 max SNAP benefit: $298/month for 1 person, $994/month for a family of 4 - Benefits load on your Kentucky EBT Card 1st–19th - The OBBB expanded work requirements to adults 55–64 and parents of teens — if you were exempt before, check whether you still are - Kentucky uses BBCE at 200% FPL — more households qualify than in standard states - Apply or recertify at kynect Kentucky Benefits or call 855-459-6328 Kentucky benefits go out on the Kentucky EBT Card 1st–19th, and Kentucky uses Broad-Based Categorical Eligibility at 200% of the poverty line, so more households qualify here than in states that stick to the federal floor. The max for a family of four in fiscal year 2026 is $994 a month, up from $975 last year. The open question now is what USDA sets for FY2027, expected in late summer. But 2026 is a more complicated year than most for SNAP. The One Big Beautiful Bill (OBBB) made some of the biggest cuts to the program in its history — and some Kentucky residents who qualified last year may not qualify now. Here’s what changed, what you can expect to receive, and what to do if you’re denied. Covered in this Article: [Toggle](#) - [2026 SNAP Benefit Amounts in Kentucky](#2026_SNAP_Benefit_Amounts_in_Kentucky) - [When Does SNAP Deposit to Your Kentucky EBT Card?](#When_Does_SNAP_Deposit_to_Your_Kentucky_EBT_Card) - [What’s Changed in 2026: OBBB Work Requirements](#Whats_Changed_in_2026_OBBB_Work_Requirements) - [How to Qualify for Kentucky SNAP in 2026](#How_to_Qualify_for_Kentucky_SNAP_in_2026) - [How to Apply](#How_to_Apply) - [What to Do If Your Kentucky SNAP Application Is Denied](#What_to_Do_If_Your_Kentucky_SNAP_Application_Is_Denied) - [What to Watch: Potential SNAP Changes Ahead](#What_to_Watch_Potential_SNAP_Changes_Ahead) - [Where Can You Use Your Kentucky EBT Card?](#Where_Can_You_Use_Your_Kentucky_EBT_Card) - [Other Benefits If You Receive Kentucky SNAP](#Other_Benefits_If_You_Receive_Kentucky_SNAP) - [Kentucky SNAP: How Benefits Have Changed (2023–2026)](#Kentucky_SNAP_How_Benefits_Have_Changed_2023%E2%80%932026) ## 2026 SNAP Benefit Amounts in Kentucky Kentucky uses the standard federal SNAP benefit schedule. Maximum monthly allotments for FY2026 (October 1, 2025 – September 30, 2026): Household SizeMax Monthly BenefitGross Income Limit (200% FPL)Net Income Limit (100% FPL)1 person$298$2,510/mo$1,255/mo2 people$546$3,406/mo$1,703/mo3 people$785$4,304/mo$2,152/mo4 people$994$5,200/mo$2,600/mo5 people$1,183$6,098/mo$3,049/mo6 people$1,421$6,994/mo$3,497/mo7 people$1,571$7,890/mo$3,945/mo8+ people$1,791+—— **Kentucky (KY) uses BBCE at 200% FPL** — significantly more generous than the 130% federal floor. A family of four can qualify with gross income up to **$5,200/month**, compared to just $3,380/month in the most restrictive states. Most households receive less than the maximum. Your actual benefit depends on net income after deductions (rent, utilities, child care, medical expenses for elderly or disabled members). ### How Much Would a Family of 4 Actually Receive in Kentucky? Here are two realistic examples to show the range: **Scenario A — Lower-income family** A family of 4 with gross monthly income of **$1,500** (one parent working part-time): - Gross income: $1,500 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$300 - Net income: $983 - 30% of net income: $295 - **Monthly SNAP benefit: $994 − $295 = $699** **Scenario B — Working family (moderate income)** A family of 4 with gross monthly income of **$3,200**: - Gross income: $3,200 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$640 - Net income: $2,343 - 30% of net income: $703 - **Monthly SNAP benefit: $994 − $703 = $291** The 20% earned income deduction rewards working households. Additional deductions for excess shelter costs, child care, or medical expenses (elderly/disabled) can increase your benefit further. ## When Does SNAP Deposit to Your Kentucky EBT Card? Kentucky (KY) distributes SNAP benefits based on the **last digit of your case number**. Benefits load between the 1st–19th each month: Case # Last DigitDeposit Date11st23rd35th47th59th611th713th815th917th019th Your case number is on your approval letter or available through [kynect Kentucky Benefits](https://kynect.ky.gov). Call **855-459-6328** if you’re unsure of your deposit date — it stays the same each month once you’re approved. TANF cash benefits (if applicable) follow a separate deposit schedule. ## What’s Changed in 2026: OBBB Work Requirements The OBBB made several significant changes that took effect in late 2025 and early 2026: **Expanded work requirements**: Adults aged **55–64** who are able to work are now subject to SNAP work requirements for the first time. Previously the cutoff was 49. Parents whose youngest child is **over 14** are also now subject to work rules. **20 hours per week or 80 hours per month** — that’s the threshold for Able-Bodied Adults Without Dependents (ABAWDs) aged 18–64. Work, job training, or approved volunteer activity all count. Fail to meet the requirement and benefits are limited to **3 months in any 36-month period**. **State cost-sharing starting in 2028**: States will begin paying a share of benefit costs based on their SNAP payment error rate. This is new territory for all state budgets. **$186 billion in total federal SNAP cuts** over the next decade. If you were receiving SNAP in 2024 and haven’t recertified recently, check your current eligibility — the rules have shifted. ## How to Qualify for Kentucky SNAP in 2026 **Income**: Gross income must be at or below 200% FPL (see table above). Net income (after deductions) must be at or below 100% FPL. **Residency**: Must be a Kentucky resident. **Citizenship**: U.S. citizens and certain lawfully present immigrants qualify. Undocumented individuals are not eligible for federal SNAP benefits. **Work requirements**: Most able-bodied adults 18–64 must register for work and accept suitable employment. ABAWDs must meet the 80-hour/month work, training, or volunteer threshold. New in 2026: adults 55–64 are now included. ## How to Apply - **Online**: [kynect Kentucky Benefits](https://kynect.ky.gov) — fastest option, available 24/7 - **In person**: Any local Kentucky Cabinet for Health and Family Services office - **Phone**: 855-459-6328 Kentucky has up to **30 days** to process your application — or **7 days** if you qualify for expedited SNAP (very low income or resources). Benefits are backdated to your application date. Things can shift quickly. I’ll update this page when anything changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What to Do If Your Kentucky SNAP Application Is Denied Denials are common and often appealable. The most frequent reasons are income slightly over the stated limit, missing documentation, and work requirement issues — all of which can be addressed. **Step 1**: Read your denial notice carefully. Kentucky is required to explain the specific reason in writing. **Step 2**: Gather documentation that addresses the reason — recent pay stubs, rent receipts, proof of work activities, or a letter from your employer if hours changed. **Step 3**: Request a fair hearing within **90 days** of your denial. You can request one online at [kynect Kentucky Benefits](https://kynect.ky.gov), in person at your local Kentucky Cabinet for Health and Family Services office, or by calling **855-459-6328**. **Step 4**: While your appeal is pending, you can continue receiving benefits if you were previously approved — request continued benefits when you file your hearing request. --- ## What to Watch: Potential SNAP Changes Ahead **State cost-sharing (FY2027–2028)**: Starting in FY2027, Kentucky will begin paying a share of SNAP benefit costs — a first for all states. The percentage depends on Kentucky’s payment error rate. If cost pressure builds, expect tighter eligibility administration at the state level. **Work requirement enforcement**: Federal guidance on the expanded age 55–64 rules is still evolving. States are implementing these in phases — if you’re in the newly covered age range, check with your caseworker. **BBCE at risk**: Kentucky’s 200% FPL income limit narrowly survived the OBBB — earlier versions of the legislation would have eliminated it. If BBCE is eliminated in future legislation, the income limit for a family of 4 would drop from $5,200/month to $3,380/month. **FY2027 COLA adjustment**: Benefits update October 1. I’ll post FY2027 amounts here when USDA releases them (typically late summer 2026). Things can shift quickly — [Subscribe or follow us ↗](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates. --- ## Where Can You Use Your Kentucky EBT Card? **In stores**: Any USDA-authorized retailer — including Walmart, Kroger, ALDI, Meijer, Save-A-Lot, and most independent grocery stores. Look for the EBT/SNAP sign at checkout. **Online**: Kentucky SNAP recipients can shop online through **Amazon Fresh** and **Walmart Grocery** — select SNAP/EBT as your payment method at checkout. Delivery fees are not covered by SNAP (only the groceries themselves). **Farmers markets**: Many Kentucky farmers markets accept EBT. Some participate in the Double Up Food Bucks program, which matches SNAP dollars on locally-grown produce. **What SNAP does NOT cover**: Alcohol, tobacco, vitamins/supplements, hot prepared foods, fast food, pet food, household supplies, or hygiene products. ## Other Benefits If You Receive Kentucky SNAP SNAP often unlocks access to other programs: - **Medicaid / CHIP**: Receiving SNAP can streamline Medicaid enrollment for adults and children. Apply through [kynect Kentucky Benefits](https://kynect.ky.gov). - **LIHEAP**: Low Income Home Energy Assistance helps with utility bills. Contact your local community action agency or call 2-1-1. - **WIC**: Nutrition support for pregnant women, new mothers, and children under 5. Separate application through your state health department. - **Summer EBT (SUN Bucks)**: Extra food benefits for school-age children during summer months. Check with your state for 2026 enrollment. - **Free/reduced school meals**: SNAP households automatically qualify. Register through your child’s school district. For a full overview of federal SNAP amounts and recent cuts, see the [2026 SNAP benefits guide](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). See also: [Kentucky unemployment benefit amounts and eligibility rules](https://savingtoinvest.com/kentucky-ky-career-center-unemployment-benefit-program-latest-news-and-updates-after-pandemic-benefits-expiry/). --- ## Kentucky SNAP: How Benefits Have Changed (2023–2026) PeriodMax Benefit (Family of 4)Key DevelopmentFY2023 (Oct 2022 – Sep 2023)$939/monthPandemic Emergency Allotments ended — biggest single drop since the pandemicFY2024 (Oct 2023 – Sep 2024)$973/month~3.7% COLA increase; first full year post-pandemicFY2025 (Oct 2024 – Sep 2025)$975/monthMinimal ~0.2% increase; OBBB signed into lawFY2026 (Oct 2025 – Sep 2026)$994/month~2% increase; expanded work requirements take effect The end of Emergency Allotments in early 2023 was the biggest disruption in recent memory — some households that had received the maximum saw benefits drop to $23/month. FY2026 numbers are all standard formula, no pandemic additions. Frequently Asked Questions QHow much is SNAP in Kentucky in 2026? AThe maximum monthly SNAP benefit in Kentucky (KY) for FY2026 is $298 for a single person, $546 for 2 people, $785 for 3 people, $994 for a family of 4, and $1,183 for 5 people. Most households receive less than the maximum based on net income after deductions. QWhen does SNAP deposit to my Kentucky EBT card? ABenefits load 1st–19th. Check your approval letter or kynect Kentucky Benefits for your exact deposit date. QWhat are the income limits for Kentucky SNAP in 2026? AKentucky uses a gross income limit of 200% FPL — approximately $2,510/month for a single person or $5,200/month for a family of four. Net income (after deductions) must be at or below 100% FPL. QHow do I apply for SNAP in Kentucky? AApply online at https://kynect.ky.gov, in person at a local Kentucky Cabinet for Health and Family Services (CHFS) office, or by calling 855-459-6328. Processing takes up to 30 days, or 7 days if you qualify for expedited benefits. QWhat can I buy with my Kentucky EBT card? ASNAP covers groceries including produce, meat, dairy, bread, cereals, and packaged foods. You can shop in-store at most major grocery chains and online through Amazon Fresh and Walmart Grocery. SNAP does not cover alcohol, tobacco, hot prepared foods, vitamins, or non-food household items. QWhat do I do if my Kentucky SNAP application is denied? ARequest a fair hearing within 90 days of your denial notice. Apply online at https://kynect.ky.gov, in person at a local office, or by calling 855-459-6328. The agency must explain the specific reason for denial — gather documentation addressing that reason before your hearing. QDid SNAP benefits change in 2026? AYes. The One Big Beautiful Bill (OBBB) expanded work requirements to include adults aged 55–64 and parents of children over 14. It cuts federal SNAP funding by $186 billion over 10 years and shifts some benefit costs to states starting in 2028. QCan I use my Kentucky EBT card at Walmart or Amazon? AYes to both. Walmart accepts Kentucky EBT in-store and online at walmart.com. Amazon Fresh also accepts SNAP/EBT online — select it as your payment method at checkout. Delivery fees are not covered, only eligible food items. **Categories:** Taxes and Retirement --- ### [Kansas SNAP Benefits: 2027 Outlook, Current 2026 Amounts Up to $994/Month](https://savingtoinvest.com/kansas-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) **Published:** June 22, 2026 **Author:** Andy **Content:** ### Key Takeaways - FY2026 max SNAP benefit: $298/month for 1 person, $994/month for a family of 4 - Benefits load on your Kansas EBT Card 1st–10th - The OBBB expanded work requirements to adults 55–64 and parents of teens — if you were exempt before, check whether you still are - Kansas uses the federal 130% FPL income limit — the minimum floor, no expansion - Apply or recertify at Kansas Benefits Portal or call 1-888-369-4777 If you’re applying for or renewing SNAP in Kansas, benefits load onto the Kansas EBT Card 1st–10th through Kansas Benefits Portal. The fiscal year 2026 maximum for a family of four is $994 a month, up from $975 last year. The open question now is what USDA sets for FY2027, expected in late summer. But 2026 is a more complicated year than most for SNAP. The One Big Beautiful Bill (OBBB) made some of the biggest cuts to the program in its history — and some Kansas residents who qualified last year may not qualify now. Here’s what changed, what you can expect to receive, and what to do if you’re denied. Covered in this Article: [Toggle](#) - [2026 SNAP Benefit Amounts in Kansas](#2026_SNAP_Benefit_Amounts_in_Kansas) - [When Does SNAP Deposit to Your Kansas EBT Card?](#When_Does_SNAP_Deposit_to_Your_Kansas_EBT_Card) - [What’s Changed in 2026: OBBB Work Requirements](#Whats_Changed_in_2026_OBBB_Work_Requirements) - [How to Qualify for Kansas SNAP in 2026](#How_to_Qualify_for_Kansas_SNAP_in_2026) - [How to Apply](#How_to_Apply) - [What to Do If Your Kansas SNAP Application Is Denied](#What_to_Do_If_Your_Kansas_SNAP_Application_Is_Denied) - [What to Watch: Potential SNAP Changes Ahead](#What_to_Watch_Potential_SNAP_Changes_Ahead) - [Where Can You Use Your Kansas EBT Card?](#Where_Can_You_Use_Your_Kansas_EBT_Card) - [Other Benefits If You Receive Kansas SNAP](#Other_Benefits_If_You_Receive_Kansas_SNAP) - [Kansas SNAP: How Benefits Have Changed (2023–2026)](#Kansas_SNAP_How_Benefits_Have_Changed_2023%E2%80%932026) ## 2026 SNAP Benefit Amounts in Kansas Kansas uses the standard federal SNAP benefit schedule. Maximum monthly allotments for FY2026 (October 1, 2025 – September 30, 2026): Household SizeMax Monthly BenefitGross Income Limit (130% FPL)Net Income Limit (100% FPL)1 person$298$1,632/mo$1,255/mo2 people$546$2,214/mo$1,703/mo3 people$785$2,798/mo$2,152/mo4 people$994$3,380/mo$2,600/mo5 people$1,183$3,964/mo$3,049/mo6 people$1,421$4,546/mo$3,497/mo7 people$1,571$5,128/mo$3,945/mo8+ people$1,791+—— **Kansas (KS) uses the federal 130% FPL income standard** — the minimum floor, no expansion. A family of four must have gross income at or below **$3,380/month** to qualify. This is one of the stricter limits nationally. Most households receive less than the maximum. Your actual benefit depends on net income after deductions (rent, utilities, child care, medical expenses for elderly or disabled members). ### How Much Would a Family of 4 Actually Receive in Kansas? Here are two realistic examples to show the range: **Scenario A — Lower-income family** A family of 4 with gross monthly income of **$1,500** (one parent working part-time): - Gross income: $1,500 ✓ (within $3,380/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$300 - Net income: $983 - 30% of net income: $295 - **Monthly SNAP benefit: $994 − $295 = $699** **Scenario B — Working family (moderate income)** A family of 4 with gross monthly income of **$2,000**: - Gross income: $2,000 ✓ (within $3,380/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$400 - Net income: $1,383 - 30% of net income: $415 - **Monthly SNAP benefit: $994 − $415 = $579** The 20% earned income deduction rewards working households. Additional deductions for excess shelter costs, child care, or medical expenses (elderly/disabled) can increase your benefit further. ## When Does SNAP Deposit to Your Kansas EBT Card? Kansas (KS) distributes SNAP benefits based on the **last digit of your case number**. Benefits load between the 1st–10th each month: Case # Last DigitDeposit Date11st22nd33rd44th55th66th77th88th99th010th Your case number is on your approval letter or available through [Kansas Benefits Portal](https://www.kansasbenefits.org). Call **1-888-369-4777** if you’re unsure of your deposit date — it stays the same each month once you’re approved. TANF cash benefits (if applicable) follow a separate deposit schedule. ## What’s Changed in 2026: OBBB Work Requirements The OBBB made several significant changes that took effect in late 2025 and early 2026: **Expanded work requirements**: Adults aged **55–64** who are able to work are now subject to SNAP work requirements for the first time. Previously the cutoff was 49. Parents whose youngest child is **over 14** are also now subject to work rules. **20 hours per week or 80 hours per month** — that’s the threshold for Able-Bodied Adults Without Dependents (ABAWDs) aged 18–64. Work, job training, or approved volunteer activity all count. Fail to meet the requirement and benefits are limited to **3 months in any 36-month period**. **State cost-sharing starting in 2028**: States will begin paying a share of benefit costs based on their SNAP payment error rate. This is new territory for all state budgets. **$186 billion in total federal SNAP cuts** over the next decade. If you were receiving SNAP in 2024 and haven’t recertified recently, check your current eligibility — the rules have shifted. ## How to Qualify for Kansas SNAP in 2026 **Income**: Gross income must be at or below 130% FPL (see table above). Net income (after deductions) must be at or below 100% FPL. **Residency**: Must be a Kansas resident. **Citizenship**: U.S. citizens and certain lawfully present immigrants qualify. Undocumented individuals are not eligible for federal SNAP benefits. **Work requirements**: Most able-bodied adults 18–64 must register for work and accept suitable employment. ABAWDs must meet the 80-hour/month work, training, or volunteer threshold. New in 2026: adults 55–64 are now included. ## How to Apply - **Online**: [Kansas Benefits Portal](https://www.kansasbenefits.org) — fastest option, available 24/7 - **In person**: Any local Kansas Department for Children and Families office - **Phone**: 1-888-369-4777 Kansas has up to **30 days** to process your application — or **7 days** if you qualify for expedited SNAP (very low income or resources). Benefits are backdated to your application date. Things can shift quickly. I’ll update this page when anything changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What to Do If Your Kansas SNAP Application Is Denied Denials are common and often appealable. The most frequent reasons are income slightly over the stated limit, missing documentation, and work requirement issues — all of which can be addressed. **Step 1**: Read your denial notice carefully. Kansas is required to explain the specific reason in writing. **Step 2**: Gather documentation that addresses the reason — recent pay stubs, rent receipts, proof of work activities, or a letter from your employer if hours changed. **Step 3**: Request a fair hearing within **90 days** of your denial. You can request one online at [Kansas Benefits Portal](https://www.kansasbenefits.org), in person at your local Kansas Department for Children and Families office, or by calling **1-888-369-4777**. **Step 4**: While your appeal is pending, you can continue receiving benefits if you were previously approved — request continued benefits when you file your hearing request. --- ## What to Watch: Potential SNAP Changes Ahead **State cost-sharing (FY2027–2028)**: Starting in FY2027, Kansas will begin paying a share of SNAP benefit costs — a first for all states. The percentage depends on Kansas’s payment error rate. If cost pressure builds, expect tighter eligibility administration at the state level. **Work requirement enforcement**: Federal guidance on the expanded age 55–64 rules is still evolving. States are implementing these in phases — if you’re in the newly covered age range, check with your caseworker. **FY2027 COLA adjustment**: Benefits update October 1. I’ll post FY2027 amounts here when USDA releases them (typically late summer 2026). Things can shift quickly — [Subscribe or follow us ↗](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates. --- ## Where Can You Use Your Kansas EBT Card? **In stores**: Any USDA-authorized retailer — including Walmart, Dillon’s (Kroger), ALDI, Price Chopper, Hy-Vee, and most independent grocery stores. Look for the EBT/SNAP sign at checkout. **Online**: Kansas SNAP recipients can shop online through **Amazon Fresh** and **Walmart Grocery** — select SNAP/EBT as your payment method at checkout. Delivery fees are not covered by SNAP (only the groceries themselves). **Farmers markets**: Many Kansas farmers markets accept EBT. Some participate in the Double Up Food Bucks program, which matches SNAP dollars on locally-grown produce. **What SNAP does NOT cover**: Alcohol, tobacco, vitamins/supplements, hot prepared foods, fast food, pet food, household supplies, or hygiene products. ## Other Benefits If You Receive Kansas SNAP SNAP often unlocks access to other programs: - **Medicaid / CHIP**: Receiving SNAP can streamline Medicaid enrollment for adults and children. Apply through [Kansas Benefits Portal](https://www.kansasbenefits.org). - **LIHEAP**: Low Income Home Energy Assistance helps with utility bills. Contact your local community action agency or call 2-1-1. - **WIC**: Nutrition support for pregnant women, new mothers, and children under 5. Separate application through your state health department. - **Summer EBT (SUN Bucks)**: Extra food benefits for school-age children during summer months. Check with your state for 2026 enrollment. - **Free/reduced school meals**: SNAP households automatically qualify. Register through your child’s school district. For a full overview of federal SNAP amounts and recent cuts, see the [2026 SNAP benefits guide](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). See also: [Kansas unemployment benefit amounts and eligibility rules](https://savingtoinvest.com/kansas-ks-dol-enhanced-unemployment-benefit-programs-fpuc-peuc-and-pua-2021-extension-news-and-updates/). --- ## Kansas SNAP: How Benefits Have Changed (2023–2026) PeriodMax Benefit (Family of 4)Key DevelopmentFY2023 (Oct 2022 – Sep 2023)$939/monthPandemic Emergency Allotments ended — biggest single drop since the pandemicFY2024 (Oct 2023 – Sep 2024)$973/month~3.7% COLA increase; first full year post-pandemicFY2025 (Oct 2024 – Sep 2025)$975/monthMinimal ~0.2% increase; OBBB signed into lawFY2026 (Oct 2025 – Sep 2026)$994/month~2% increase; expanded work requirements take effect The end of Emergency Allotments in early 2023 was the biggest disruption in recent memory — some households that had received the maximum saw benefits drop to $23/month. FY2026 numbers are all standard formula, no pandemic additions. Frequently Asked Questions QHow much is SNAP in Kansas in 2026? AThe maximum monthly SNAP benefit in Kansas (KS) for FY2026 is $298 for a single person, $546 for 2 people, $785 for 3 people, $994 for a family of 4, and $1,183 for 5 people. Most households receive less than the maximum based on net income after deductions. QWhen does SNAP deposit to my Kansas EBT card? ABenefits load 1st–10th. Check your approval letter or Kansas Benefits Portal for your exact deposit date. QWhat are the income limits for Kansas SNAP in 2026? AKansas uses a gross income limit of 130% FPL — approximately $1,632/month for a single person or $3,380/month for a family of four. Net income (after deductions) must be at or below 100% FPL. QHow do I apply for SNAP in Kansas? AApply online at https://www.kansasbenefits.org, in person at a local Kansas Department for Children and Families (DCF) office, or by calling 1-888-369-4777. Processing takes up to 30 days, or 7 days if you qualify for expedited benefits. QWhat can I buy with my Kansas EBT card? ASNAP covers groceries including produce, meat, dairy, bread, cereals, and packaged foods. You can shop in-store at most major grocery chains and online through Amazon Fresh and Walmart Grocery. SNAP does not cover alcohol, tobacco, hot prepared foods, vitamins, or non-food household items. QWhat do I do if my Kansas SNAP application is denied? ARequest a fair hearing within 90 days of your denial notice. Apply online at https://www.kansasbenefits.org, in person at a local office, or by calling 1-888-369-4777. The agency must explain the specific reason for denial — gather documentation addressing that reason before your hearing. QDid SNAP benefits change in 2026? AYes. The One Big Beautiful Bill (OBBB) expanded work requirements to include adults aged 55–64 and parents of children over 14. It cuts federal SNAP funding by $186 billion over 10 years and shifts some benefit costs to states starting in 2028. QCan I use my Kansas EBT card at Walmart or Amazon? AYes to both. Walmart accepts Kansas EBT in-store and online at walmart.com. Amazon Fresh also accepts SNAP/EBT online — select it as your payment method at checkout. Delivery fees are not covered, only eligible food items. **Categories:** Taxes and Retirement --- ### [Iowa SNAP Benefits: 2027 Outlook, Current 2026 Amounts Up to $994/Month](https://savingtoinvest.com/iowa-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) **Published:** June 22, 2026 **Author:** Andy **Content:** ### Key Takeaways - FY2026 max SNAP benefit: $298/month for 1 person, $994/month for a family of 4 - Benefits load on your Iowa EBT Card 1st–10th - The OBBB expanded work requirements to adults 55–64 and parents of teens — if you were exempt before, check whether you still are - Iowa uses BBCE at 160% FPL — more households qualify than in standard states - Apply or recertify at Iowa HHS Benefits or call 1-877-347-5678 Iowa uses Broad-Based Categorical Eligibility at 160% of the poverty line, so more households qualify here than in states that stick to the federal floor. Either way, the fiscal year 2026 maximum benefit is the same nationwide: $994 a month for a family of four, up from $975 last year. The open question now is what USDA sets for FY2027, expected in late summer. But 2026 is a more complicated year than most for SNAP. The One Big Beautiful Bill (OBBB) made some of the biggest cuts to the program in its history — and some Iowa residents who qualified last year may not qualify now. Here’s what changed, what you can expect to receive, and what to do if you’re denied. Covered in this Article: [Toggle](#) - [2026 SNAP Benefit Amounts in Iowa](#2026_SNAP_Benefit_Amounts_in_Iowa) - [When Does SNAP Deposit to Your Iowa EBT Card?](#When_Does_SNAP_Deposit_to_Your_Iowa_EBT_Card) - [What’s Changed in 2026: OBBB Work Requirements](#Whats_Changed_in_2026_OBBB_Work_Requirements) - [How to Qualify for Iowa SNAP in 2026](#How_to_Qualify_for_Iowa_SNAP_in_2026) - [How to Apply](#How_to_Apply) - [What to Do If Your Iowa SNAP Application Is Denied](#What_to_Do_If_Your_Iowa_SNAP_Application_Is_Denied) - [What to Watch: Potential SNAP Changes Ahead](#What_to_Watch_Potential_SNAP_Changes_Ahead) - [Where Can You Use Your Iowa EBT Card?](#Where_Can_You_Use_Your_Iowa_EBT_Card) - [Other Benefits If You Receive Iowa SNAP](#Other_Benefits_If_You_Receive_Iowa_SNAP) - [Iowa SNAP: How Benefits Have Changed (2023–2026)](#Iowa_SNAP_How_Benefits_Have_Changed_2023%E2%80%932026) ## 2026 SNAP Benefit Amounts in Iowa Iowa uses the standard federal SNAP benefit schedule. Maximum monthly allotments for FY2026 (October 1, 2025 – September 30, 2026): Household SizeMax Monthly BenefitGross Income Limit (160% FPL)Net Income Limit (100% FPL)1 person$298$2,008/mo$1,255/mo2 people$546$2,725/mo$1,703/mo3 people$785$3,443/mo$2,152/mo4 people$994$4,160/mo$2,600/mo5 people$1,183$4,878/mo$3,049/mo6 people$1,421$5,595/mo$3,497/mo7 people$1,571$6,312/mo$3,945/mo8+ people$1,791+—— **Iowa (IA) uses BBCE at 160% FPL**, extending eligibility somewhat beyond the federal floor. A family of four can qualify with gross income up to **$4,160/month**. Most households receive less than the maximum. Your actual benefit depends on net income after deductions (rent, utilities, child care, medical expenses for elderly or disabled members). ### How Much Would a Family of 4 Actually Receive in Iowa? Here are two realistic examples to show the range: **Scenario A — Lower-income family** A family of 4 with gross monthly income of **$1,500** (one parent working part-time): - Gross income: $1,500 ✓ (within $4,160/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$300 - Net income: $983 - 30% of net income: $295 - **Monthly SNAP benefit: $994 − $295 = $699** **Scenario B — Working family (moderate income)** A family of 4 with gross monthly income of **$2,000**: - Gross income: $2,000 ✓ (within $4,160/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$400 - Net income: $1,383 - 30% of net income: $415 - **Monthly SNAP benefit: $994 − $415 = $579** The 20% earned income deduction rewards working households. Additional deductions for excess shelter costs, child care, or medical expenses (elderly/disabled) can increase your benefit further. ## When Does SNAP Deposit to Your Iowa EBT Card? Iowa (IA) distributes SNAP benefits based on the **last digit of your case number**. Benefits load between the 1st–10th each month: Case # Last DigitDeposit Date11st22nd33rd44th55th66th77th88th99th010th Your case number is on your approval letter or available through [Iowa HHS Benefits](https://dhs.iowa.gov/food-assistance). Call **1-877-347-5678** if you’re unsure of your deposit date — it stays the same each month once you’re approved. TANF cash benefits (if applicable) follow a separate deposit schedule. ## What’s Changed in 2026: OBBB Work Requirements The OBBB made several significant changes that took effect in late 2025 and early 2026: **Expanded work requirements**: Adults aged **55–64** who are able to work are now subject to SNAP work requirements for the first time. Previously the cutoff was 49. Parents whose youngest child is **over 14** are also now subject to work rules. **20 hours per week or 80 hours per month** — that’s the threshold for Able-Bodied Adults Without Dependents (ABAWDs) aged 18–64. Work, job training, or approved volunteer activity all count. Fail to meet the requirement and benefits are limited to **3 months in any 36-month period**. **State cost-sharing starting in 2028**: States will begin paying a share of benefit costs based on their SNAP payment error rate. This is new territory for all state budgets. **$186 billion in total federal SNAP cuts** over the next decade. If you were receiving SNAP in 2024 and haven’t recertified recently, check your current eligibility — the rules have shifted. ## How to Qualify for Iowa SNAP in 2026 **Income**: Gross income must be at or below 160% FPL (see table above). Net income (after deductions) must be at or below 100% FPL. **Residency**: Must be a Iowa resident. **Citizenship**: U.S. citizens and certain lawfully present immigrants qualify. Undocumented individuals are not eligible for federal SNAP benefits. **Work requirements**: Most able-bodied adults 18–64 must register for work and accept suitable employment. ABAWDs must meet the 80-hour/month work, training, or volunteer threshold. New in 2026: adults 55–64 are now included. ## How to Apply - **Online**: [Iowa HHS Benefits](https://dhs.iowa.gov/food-assistance) — fastest option, available 24/7 - **In person**: Any local Iowa Department of Health and Human Services office - **Phone**: 1-877-347-5678 Iowa has up to **30 days** to process your application — or **7 days** if you qualify for expedited SNAP (very low income or resources). Benefits are backdated to your application date. Things can shift quickly. I’ll update this page when anything changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What to Do If Your Iowa SNAP Application Is Denied Denials are common and often appealable. The most frequent reasons are income slightly over the stated limit, missing documentation, and work requirement issues — all of which can be addressed. **Step 1**: Read your denial notice carefully. Iowa is required to explain the specific reason in writing. **Step 2**: Gather documentation that addresses the reason — recent pay stubs, rent receipts, proof of work activities, or a letter from your employer if hours changed. **Step 3**: Request a fair hearing within **90 days** of your denial. You can request one online at [Iowa HHS Benefits](https://dhs.iowa.gov/food-assistance), in person at your local Iowa Department of Health and Human Services office, or by calling **1-877-347-5678**. **Step 4**: While your appeal is pending, you can continue receiving benefits if you were previously approved — request continued benefits when you file your hearing request. --- ## What to Watch: Potential SNAP Changes Ahead **State cost-sharing (FY2027–2028)**: Starting in FY2027, Iowa will begin paying a share of SNAP benefit costs — a first for all states. The percentage depends on Iowa’s payment error rate. If cost pressure builds, expect tighter eligibility administration at the state level. **Work requirement enforcement**: Federal guidance on the expanded age 55–64 rules is still evolving. States are implementing these in phases — if you’re in the newly covered age range, check with your caseworker. **FY2027 COLA adjustment**: Benefits update October 1. I’ll post FY2027 amounts here when USDA releases them (typically late summer 2026). Things can shift quickly — [Subscribe or follow us ↗](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates. --- ## Where Can You Use Your Iowa EBT Card? **In stores**: Any USDA-authorized retailer — including Walmart, Hy-Vee, Fareway, ALDI, Casey’s (select food items), and most independent grocery stores. Look for the EBT/SNAP sign at checkout. **Online**: Iowa SNAP recipients can shop online through **Amazon Fresh** and **Walmart Grocery** — select SNAP/EBT as your payment method at checkout. Delivery fees are not covered by SNAP (only the groceries themselves). **Farmers markets**: Many Iowa farmers markets accept EBT. Some participate in the Double Up Food Bucks program, which matches SNAP dollars on locally-grown produce. **What SNAP does NOT cover**: Alcohol, tobacco, vitamins/supplements, hot prepared foods, fast food, pet food, household supplies, or hygiene products. ## Other Benefits If You Receive Iowa SNAP SNAP often unlocks access to other programs: - **Medicaid / CHIP**: Receiving SNAP can streamline Medicaid enrollment for adults and children. Apply through [Iowa HHS Benefits](https://dhs.iowa.gov/food-assistance). - **LIHEAP**: Low Income Home Energy Assistance helps with utility bills. Contact your local community action agency or call 2-1-1. - **WIC**: Nutrition support for pregnant women, new mothers, and children under 5. Separate application through your state health department. - **Summer EBT (SUN Bucks)**: Extra food benefits for school-age children during summer months. Check with your state for 2026 enrollment. - **Free/reduced school meals**: SNAP households automatically qualify. Register through your child’s school district. For a full overview of federal SNAP amounts and recent cuts, see the [2026 SNAP benefits guide](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). See also: [Iowa unemployment benefit amounts and eligibility rules](https://savingtoinvest.com/iowa-unemployment-benefits/). --- ## Iowa SNAP: How Benefits Have Changed (2023–2026) PeriodMax Benefit (Family of 4)Key DevelopmentFY2023 (Oct 2022 – Sep 2023)$939/monthPandemic Emergency Allotments ended — biggest single drop since the pandemicFY2024 (Oct 2023 – Sep 2024)$973/month~3.7% COLA increase; first full year post-pandemicFY2025 (Oct 2024 – Sep 2025)$975/monthMinimal ~0.2% increase; OBBB signed into lawFY2026 (Oct 2025 – Sep 2026)$994/month~2% increase; expanded work requirements take effect The end of Emergency Allotments in early 2023 was the biggest disruption in recent memory — some households that had received the maximum saw benefits drop to $23/month. FY2026 numbers are all standard formula, no pandemic additions. Frequently Asked Questions QHow much is SNAP in Iowa in 2026? AThe maximum monthly SNAP benefit in Iowa (IA) for FY2026 is $298 for a single person, $546 for 2 people, $785 for 3 people, $994 for a family of 4, and $1,183 for 5 people. Most households receive less than the maximum based on net income after deductions. QWhen does SNAP deposit to my Iowa EBT card? ABenefits load 1st–10th. Check your approval letter or Iowa HHS Benefits for your exact deposit date. QWhat are the income limits for Iowa SNAP in 2026? AIowa uses a gross income limit of 160% FPL — approximately $2,008/month for a single person or $4,160/month for a family of four. Net income (after deductions) must be at or below 100% FPL. QHow do I apply for SNAP in Iowa? AApply online at https://dhs.iowa.gov/food-assistance, in person at a local Iowa Department of Health and Human Services office, or by calling 1-877-347-5678. Processing takes up to 30 days, or 7 days if you qualify for expedited benefits. QWhat can I buy with my Iowa EBT card? ASNAP covers groceries including produce, meat, dairy, bread, cereals, and packaged foods. You can shop in-store at most major grocery chains and online through Amazon Fresh and Walmart Grocery. SNAP does not cover alcohol, tobacco, hot prepared foods, vitamins, or non-food household items. QWhat do I do if my Iowa SNAP application is denied? ARequest a fair hearing within 90 days of your denial notice. Apply online at https://dhs.iowa.gov/food-assistance, in person at a local office, or by calling 1-877-347-5678. The agency must explain the specific reason for denial — gather documentation addressing that reason before your hearing. QDid SNAP benefits change in 2026? AYes. The One Big Beautiful Bill (OBBB) expanded work requirements to include adults aged 55–64 and parents of children over 14. It cuts federal SNAP funding by $186 billion over 10 years and shifts some benefit costs to states starting in 2028. QCan I use my Iowa EBT card at Walmart or Amazon? AYes to both. Walmart accepts Iowa EBT in-store and online at walmart.com. Amazon Fresh also accepts SNAP/EBT online — select it as your payment method at checkout. Delivery fees are not covered, only eligible food items. **Categories:** Taxes and Retirement --- ### [Indiana SNAP Benefits: 2027 Outlook, Current 2026 Amounts Up to $994/Month](https://savingtoinvest.com/indiana-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) **Published:** June 22, 2026 **Author:** Andy **Content:** ### Key Takeaways - FY2026 max SNAP benefit: $298/month for 1 person, $994/month for a family of 4 - Benefits load on your Indiana Hoosier Works Card (EBT) 5th–23rd - The OBBB expanded work requirements to adults 55–64 and parents of teens — if you were exempt before, check whether you still are - Indiana uses the federal 130% FPL income limit — the minimum floor, no expansion - Apply or recertify at Indiana FSSA Benefits Portal or call 800-403-0864 A family of four on SNAP in Indiana can get up to $994 a month in fiscal year 2026 — up from $975 last year — deposited onto the Indiana Hoosier Works Card (EBT) 5th–23rd. The open question now is what USDA sets for FY2027, expected in late summer. But 2026 is a more complicated year than most for SNAP. The One Big Beautiful Bill (OBBB) made some of the biggest cuts to the program in its history — and some Indiana residents who qualified last year may not qualify now. Here’s what changed, what you can expect to receive, and what to do if you’re denied. Covered in this Article: [Toggle](#) - [2026 SNAP Benefit Amounts in Indiana](#2026_SNAP_Benefit_Amounts_in_Indiana) - [When Does SNAP Deposit to Your Indiana EBT Card?](#When_Does_SNAP_Deposit_to_Your_Indiana_EBT_Card) - [What’s Changed in 2026: OBBB Work Requirements](#Whats_Changed_in_2026_OBBB_Work_Requirements) - [How to Qualify for Indiana SNAP in 2026](#How_to_Qualify_for_Indiana_SNAP_in_2026) - [How to Apply](#How_to_Apply) - [What to Do If Your Indiana SNAP Application Is Denied](#What_to_Do_If_Your_Indiana_SNAP_Application_Is_Denied) - [What to Watch: Potential SNAP Changes Ahead](#What_to_Watch_Potential_SNAP_Changes_Ahead) - [Where Can You Use Your Indiana EBT Card?](#Where_Can_You_Use_Your_Indiana_EBT_Card) - [Other Benefits If You Receive Indiana SNAP](#Other_Benefits_If_You_Receive_Indiana_SNAP) - [Indiana SNAP: How Benefits Have Changed (2023–2026)](#Indiana_SNAP_How_Benefits_Have_Changed_2023%E2%80%932026) ## 2026 SNAP Benefit Amounts in Indiana Indiana uses the standard federal SNAP benefit schedule. Maximum monthly allotments for FY2026 (October 1, 2025 – September 30, 2026): Household SizeMax Monthly BenefitGross Income Limit (130% FPL)Net Income Limit (100% FPL)1 person$298$1,632/mo$1,255/mo2 people$546$2,214/mo$1,703/mo3 people$785$2,798/mo$2,152/mo4 people$994$3,380/mo$2,600/mo5 people$1,183$3,964/mo$3,049/mo6 people$1,421$4,546/mo$3,497/mo7 people$1,571$5,128/mo$3,945/mo8+ people$1,791+—— **Indiana (IN) uses the federal 130% FPL income standard** — the minimum floor, no expansion. A family of four must have gross income at or below **$3,380/month** to qualify. This is one of the stricter limits nationally. Most households receive less than the maximum. Your actual benefit depends on net income after deductions (rent, utilities, child care, medical expenses for elderly or disabled members). ### How Much Would a Family of 4 Actually Receive in Indiana? Here are two realistic examples to show the range: **Scenario A — Lower-income family** A family of 4 with gross monthly income of **$1,500** (one parent working part-time): - Gross income: $1,500 ✓ (within $3,380/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$300 - Net income: $983 - 30% of net income: $295 - **Monthly SNAP benefit: $994 − $295 = $699** **Scenario B — Working family (moderate income)** A family of 4 with gross monthly income of **$2,000**: - Gross income: $2,000 ✓ (within $3,380/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$400 - Net income: $1,383 - 30% of net income: $415 - **Monthly SNAP benefit: $994 − $415 = $579** The 20% earned income deduction rewards working households. Additional deductions for excess shelter costs, child care, or medical expenses (elderly/disabled) can increase your benefit further. ## When Does SNAP Deposit to Your Indiana EBT Card? Indiana (IN) distributes SNAP benefits based on the **first letter of your last name**. Benefits load between the 5th–23rd: Last Name Starts WithDeposit DateA–E5thF–J10thK–N14thO–T18thU–Z23rd Your case number is on your approval letter or available through [Indiana FSSA Benefits Portal](https://fssabenefits.in.gov). Call **800-403-0864** if you’re unsure of your deposit date — it stays the same each month once you’re approved. TANF cash benefits (if applicable) follow a separate deposit schedule. ## What’s Changed in 2026: OBBB Work Requirements The OBBB made several significant changes that took effect in late 2025 and early 2026: **Expanded work requirements**: Adults aged **55–64** who are able to work are now subject to SNAP work requirements for the first time. Previously the cutoff was 49. Parents whose youngest child is **over 14** are also now subject to work rules. **20 hours per week or 80 hours per month** — that’s the threshold for Able-Bodied Adults Without Dependents (ABAWDs) aged 18–64. Work, job training, or approved volunteer activity all count. Fail to meet the requirement and benefits are limited to **3 months in any 36-month period**. **State cost-sharing starting in 2028**: States will begin paying a share of benefit costs based on their SNAP payment error rate. This is new territory for all state budgets. **$186 billion in total federal SNAP cuts** over the next decade. If you were receiving SNAP in 2024 and haven’t recertified recently, check your current eligibility — the rules have shifted. ## How to Qualify for Indiana SNAP in 2026 **Income**: Gross income must be at or below 130% FPL (see table above). Net income (after deductions) must be at or below 100% FPL. **Residency**: Must be a Indiana resident. **Citizenship**: U.S. citizens and certain lawfully present immigrants qualify. Undocumented individuals are not eligible for federal SNAP benefits. **Work requirements**: Most able-bodied adults 18–64 must register for work and accept suitable employment. ABAWDs must meet the 80-hour/month work, training, or volunteer threshold. New in 2026: adults 55–64 are now included. ## How to Apply - **Online**: [Indiana FSSA Benefits Portal](https://fssabenefits.in.gov) — fastest option, available 24/7 - **In person**: Any local Indiana Family and Social Services Administration office - **Phone**: 800-403-0864 Indiana has up to **30 days** to process your application — or **7 days** if you qualify for expedited SNAP (very low income or resources). Benefits are backdated to your application date. Things can shift quickly. I’ll update this page when anything changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What to Do If Your Indiana SNAP Application Is Denied Denials are common and often appealable. The most frequent reasons are income slightly over the stated limit, missing documentation, and work requirement issues — all of which can be addressed. **Step 1**: Read your denial notice carefully. Indiana is required to explain the specific reason in writing. **Step 2**: Gather documentation that addresses the reason — recent pay stubs, rent receipts, proof of work activities, or a letter from your employer if hours changed. **Step 3**: Request a fair hearing within **90 days** of your denial. You can request one online at [Indiana FSSA Benefits Portal](https://fssabenefits.in.gov), in person at your local Indiana Family and Social Services Administration office, or by calling **800-403-0864**. **Step 4**: While your appeal is pending, you can continue receiving benefits if you were previously approved — request continued benefits when you file your hearing request. --- ## What to Watch: Potential SNAP Changes Ahead **State cost-sharing (FY2027–2028)**: Starting in FY2027, Indiana will begin paying a share of SNAP benefit costs — a first for all states. The percentage depends on Indiana’s payment error rate. If cost pressure builds, expect tighter eligibility administration at the state level. **Work requirement enforcement**: Federal guidance on the expanded age 55–64 rules is still evolving. States are implementing these in phases — if you’re in the newly covered age range, check with your caseworker. **FY2027 COLA adjustment**: Benefits update October 1. I’ll post FY2027 amounts here when USDA releases them (typically late summer 2026). Things can shift quickly — [Subscribe or follow us ↗](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates. --- ## Where Can You Use Your Indiana EBT Card? **In stores**: Any USDA-authorized retailer — including Walmart, Kroger, Meijer, ALDI, Martin’s, Scott’s, and most independent grocery stores. Look for the EBT/SNAP sign at checkout. **Online**: Indiana SNAP recipients can shop online through **Amazon Fresh** and **Walmart Grocery** — select SNAP/EBT as your payment method at checkout. Delivery fees are not covered by SNAP (only the groceries themselves). **Farmers markets**: Many Indiana farmers markets accept EBT. Some participate in the Double Up Food Bucks program, which matches SNAP dollars on locally-grown produce. **What SNAP does NOT cover**: Alcohol, tobacco, vitamins/supplements, hot prepared foods, fast food, pet food, household supplies, or hygiene products. ## Other Benefits If You Receive Indiana SNAP SNAP often unlocks access to other programs: - **Medicaid / CHIP**: Receiving SNAP can streamline Medicaid enrollment for adults and children. Apply through [Indiana FSSA Benefits Portal](https://fssabenefits.in.gov). - **LIHEAP**: Low Income Home Energy Assistance helps with utility bills. Contact your local community action agency or call 2-1-1. - **WIC**: Nutrition support for pregnant women, new mothers, and children under 5. Separate application through your state health department. - **Summer EBT (SUN Bucks)**: Extra food benefits for school-age children during summer months. Check with your state for 2026 enrollment. - **Free/reduced school meals**: SNAP households automatically qualify. Register through your child’s school district. For a full overview of federal SNAP amounts and recent cuts, see the [2026 SNAP benefits guide](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). See also: [Indiana unemployment benefit amounts and eligibility rules](https://savingtoinvest.com/indiana-unemployment-benefits/). --- ## Indiana SNAP: How Benefits Have Changed (2023–2026) PeriodMax Benefit (Family of 4)Key DevelopmentFY2023 (Oct 2022 – Sep 2023)$939/monthPandemic Emergency Allotments ended — biggest single drop since the pandemicFY2024 (Oct 2023 – Sep 2024)$973/month~3.7% COLA increase; first full year post-pandemicFY2025 (Oct 2024 – Sep 2025)$975/monthMinimal ~0.2% increase; OBBB signed into lawFY2026 (Oct 2025 – Sep 2026)$994/month~2% increase; expanded work requirements take effect The end of Emergency Allotments in early 2023 was the biggest disruption in recent memory — some households that had received the maximum saw benefits drop to $23/month. FY2026 numbers are all standard formula, no pandemic additions. Frequently Asked Questions QHow much is SNAP in Indiana in 2026? AThe maximum monthly SNAP benefit in Indiana (IN) for FY2026 is $298 for a single person, $546 for 2 people, $785 for 3 people, $994 for a family of 4, and $1,183 for 5 people. Most households receive less than the maximum based on net income after deductions. QWhen does SNAP deposit to my Indiana EBT card? ABenefits load 5th–23rd. Check your approval letter or Indiana FSSA Benefits Portal for your exact deposit date. QWhat are the income limits for Indiana SNAP in 2026? AIndiana uses a gross income limit of 130% FPL — approximately $1,632/month for a single person or $3,380/month for a family of four. Net income (after deductions) must be at or below 100% FPL. QHow do I apply for SNAP in Indiana? AApply online at https://fssabenefits.in.gov, in person at a local Indiana Family and Social Services Administration (FSSA) office, or by calling 800-403-0864. Processing takes up to 30 days, or 7 days if you qualify for expedited benefits. QWhat can I buy with my Indiana EBT card? ASNAP covers groceries including produce, meat, dairy, bread, cereals, and packaged foods. You can shop in-store at most major grocery chains and online through Amazon Fresh and Walmart Grocery. SNAP does not cover alcohol, tobacco, hot prepared foods, vitamins, or non-food household items. QWhat do I do if my Indiana SNAP application is denied? ARequest a fair hearing within 90 days of your denial notice. Apply online at https://fssabenefits.in.gov, in person at a local office, or by calling 800-403-0864. The agency must explain the specific reason for denial — gather documentation addressing that reason before your hearing. QDid SNAP benefits change in 2026? AYes. The One Big Beautiful Bill (OBBB) expanded work requirements to include adults aged 55–64 and parents of children over 14. It cuts federal SNAP funding by $186 billion over 10 years and shifts some benefit costs to states starting in 2028. QCan I use my Indiana EBT card at Walmart or Amazon? AYes to both. Walmart accepts Indiana EBT in-store and online at walmart.com. Amazon Fresh also accepts SNAP/EBT online — select it as your payment method at checkout. Delivery fees are not covered, only eligible food items. **Categories:** Taxes and Retirement --- ### [Illinois SNAP Benefits: 2027 Outlook, Current 2026 Amounts Up to $994/Month](https://savingtoinvest.com/illinois-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) **Published:** June 22, 2026 **Author:** Andy **Content:** ### Key Takeaways - FY2026 max SNAP benefit: $298/month for 1 person, $994/month for a family of 4 - Benefits load on your Illinois Link Card (EBT) 1st–20th - The OBBB expanded work requirements to adults 55–64 and parents of teens — if you were exempt before, check whether you still are - Illinois uses BBCE at 165% FPL — more households qualify than in standard states - Apply or recertify at ABE Illinois or call 1-800-843-6154 Illinois’s SNAP benefits load onto your Illinois Link Card (EBT) 1st–20th. The maximum for a family of four is $994 a month in fiscal year 2026, up from $975 last year. The open question now is what USDA sets for FY2027, expected in late summer. But 2026 is a more complicated year than most for SNAP. The One Big Beautiful Bill (OBBB) made some of the biggest cuts to the program in its history — and some Illinois residents who qualified last year may not qualify now. Here’s what changed, what you can expect to receive, and what to do if you’re denied. Covered in this Article: [Toggle](#) - [2026 SNAP Benefit Amounts in Illinois](#2026_SNAP_Benefit_Amounts_in_Illinois) - [When Does SNAP Deposit to Your Illinois EBT Card?](#When_Does_SNAP_Deposit_to_Your_Illinois_EBT_Card) - [What’s Changed in 2026: OBBB Work Requirements](#Whats_Changed_in_2026_OBBB_Work_Requirements) - [How to Qualify for Illinois SNAP in 2026](#How_to_Qualify_for_Illinois_SNAP_in_2026) - [How to Apply](#How_to_Apply) - [What to Do If Your Illinois SNAP Application Is Denied](#What_to_Do_If_Your_Illinois_SNAP_Application_Is_Denied) - [What to Watch: Potential SNAP Changes Ahead](#What_to_Watch_Potential_SNAP_Changes_Ahead) - [Where Can You Use Your Illinois EBT Card?](#Where_Can_You_Use_Your_Illinois_EBT_Card) - [Other Benefits If You Receive Illinois SNAP](#Other_Benefits_If_You_Receive_Illinois_SNAP) - [Illinois SNAP: How Benefits Have Changed (2023–2026)](#Illinois_SNAP_How_Benefits_Have_Changed_2023%E2%80%932026) ## 2026 SNAP Benefit Amounts in Illinois Illinois uses the standard federal SNAP benefit schedule. Maximum monthly allotments for FY2026 (October 1, 2025 – September 30, 2026): Household SizeMax Monthly BenefitGross Income Limit (165% FPL)Net Income Limit (100% FPL)1 person$298$2,071/mo$1,255/mo2 people$546$2,810/mo$1,703/mo3 people$785$3,551/mo$2,152/mo4 people$994$4,290/mo$2,600/mo5 people$1,183$5,031/mo$3,049/mo6 people$1,421$5,770/mo$3,497/mo7 people$1,571$6,509/mo$3,945/mo8+ people$1,791+—— **Illinois (IL) uses BBCE at 165% FPL**, moderately above the federal 130% floor. A family of four can qualify with gross income up to **$4,290/month** — compared to only $3,380/month in states without BBCE. Most households receive less than the maximum. Your actual benefit depends on net income after deductions (rent, utilities, child care, medical expenses for elderly or disabled members). ### How Much Would a Family of 4 Actually Receive in Illinois? Here are two realistic examples to show the range: **Scenario A — Lower-income family** A family of 4 with gross monthly income of **$1,500** (one parent working part-time): - Gross income: $1,500 ✓ (within $4,290/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$300 - Net income: $983 - 30% of net income: $295 - **Monthly SNAP benefit: $994 − $295 = $699** **Scenario B — Working family (moderate income)** A family of 4 with gross monthly income of **$2,500**: - Gross income: $2,500 ✓ (within $4,290/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$500 - Net income: $1,783 - 30% of net income: $535 - **Monthly SNAP benefit: $994 − $535 = $459** The 20% earned income deduction rewards working households. Additional deductions for excess shelter costs, child care, or medical expenses (elderly/disabled) can increase your benefit further. ## When Does SNAP Deposit to Your Illinois EBT Card? Illinois (IL) distributes SNAP benefits based on the **last digit of your case number**. Benefits load between the 1st–20th each month: Case # Last DigitDeposit Date11st23rd35th47th59th612th714th816th918th020th Your case number is on your approval letter or available through [ABE Illinois](https://abe.illinois.gov). Call **1-800-843-6154** if you’re unsure of your deposit date — it stays the same each month once you’re approved. TANF cash benefits (if applicable) follow a separate deposit schedule. ## What’s Changed in 2026: OBBB Work Requirements The OBBB made several significant changes that took effect in late 2025 and early 2026: **Expanded work requirements**: Adults aged **55–64** who are able to work are now subject to SNAP work requirements for the first time. Previously the cutoff was 49. Parents whose youngest child is **over 14** are also now subject to work rules. **20 hours per week or 80 hours per month** — that’s the threshold for Able-Bodied Adults Without Dependents (ABAWDs) aged 18–64. Work, job training, or approved volunteer activity all count. Fail to meet the requirement and benefits are limited to **3 months in any 36-month period**. **State cost-sharing starting in 2028**: States will begin paying a share of benefit costs based on their SNAP payment error rate. This is new territory for all state budgets. **$186 billion in total federal SNAP cuts** over the next decade. If you were receiving SNAP in 2024 and haven’t recertified recently, check your current eligibility — the rules have shifted. ## How to Qualify for Illinois SNAP in 2026 **Income**: Gross income must be at or below 165% FPL (see table above). Net income (after deductions) must be at or below 100% FPL. **Residency**: Must be a Illinois resident. **Citizenship**: U.S. citizens and certain lawfully present immigrants qualify. Undocumented individuals are not eligible for federal SNAP benefits. **Work requirements**: Most able-bodied adults 18–64 must register for work and accept suitable employment. ABAWDs must meet the 80-hour/month work, training, or volunteer threshold. New in 2026: adults 55–64 are now included. ## How to Apply - **Online**: [ABE Illinois](https://abe.illinois.gov) — fastest option, available 24/7 - **In person**: Any local Illinois Department of Human Services office - **Phone**: 1-800-843-6154 Illinois has up to **30 days** to process your application — or **7 days** if you qualify for expedited SNAP (very low income or resources). Benefits are backdated to your application date. Things can shift quickly. I’ll update this page when anything changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What to Do If Your Illinois SNAP Application Is Denied Denials are common and often appealable. The most frequent reasons are income slightly over the stated limit, missing documentation, and work requirement issues — all of which can be addressed. **Step 1**: Read your denial notice carefully. Illinois is required to explain the specific reason in writing. **Step 2**: Gather documentation that addresses the reason — recent pay stubs, rent receipts, proof of work activities, or a letter from your employer if hours changed. **Step 3**: Request a fair hearing within **90 days** of your denial. You can request one online at [ABE Illinois](https://abe.illinois.gov), in person at your local Illinois Department of Human Services office, or by calling **1-800-843-6154**. **Step 4**: While your appeal is pending, you can continue receiving benefits if you were previously approved — request continued benefits when you file your hearing request. --- ## What to Watch: Potential SNAP Changes Ahead **State cost-sharing (FY2027–2028)**: Starting in FY2027, Illinois will begin paying a share of SNAP benefit costs — a first for all states. The percentage depends on Illinois’s payment error rate. If cost pressure builds, expect tighter eligibility administration at the state level. **Work requirement enforcement**: Federal guidance on the expanded age 55–64 rules is still evolving. States are implementing these in phases — if you’re in the newly covered age range, check with your caseworker. **FY2027 COLA adjustment**: Benefits update October 1. I’ll post FY2027 amounts here when USDA releases them (typically late summer 2026). Things can shift quickly — [Subscribe or follow us ↗](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates. --- ## Where Can You Use Your Illinois EBT Card? **In stores**: Any USDA-authorized retailer — including Walmart, Jewel-Osco, Mariano’s, ALDI, Food 4 Less, Meijer, and most independent grocery stores. Look for the EBT/SNAP sign at checkout. **Online**: Illinois SNAP recipients can shop online through **Amazon Fresh** and **Walmart Grocery** — select SNAP/EBT as your payment method at checkout. Delivery fees are not covered by SNAP (only the groceries themselves). **Farmers markets**: Many Illinois farmers markets accept EBT. Some participate in the Double Up Food Bucks program, which matches SNAP dollars on locally-grown produce. **What SNAP does NOT cover**: Alcohol, tobacco, vitamins/supplements, hot prepared foods, fast food, pet food, household supplies, or hygiene products. ## Other Benefits If You Receive Illinois SNAP SNAP often unlocks access to other programs: - **Medicaid / CHIP**: Receiving SNAP can streamline Medicaid enrollment for adults and children. Apply through [ABE Illinois](https://abe.illinois.gov). - **LIHEAP**: Low Income Home Energy Assistance helps with utility bills. Contact your local community action agency or call 2-1-1. - **WIC**: Nutrition support for pregnant women, new mothers, and children under 5. Separate application through your state health department. - **Summer EBT (SUN Bucks)**: Extra food benefits for school-age children during summer months. Check with your state for 2026 enrollment. - **Free/reduced school meals**: SNAP households automatically qualify. Register through your child’s school district. For a full overview of federal SNAP amounts and recent cuts, see the [2026 SNAP benefits guide](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). See also: [Illinois unemployment benefit amounts and eligibility rules](https://savingtoinvest.com/illinois-il-division-of-unemployment-insurance-600-fpuc-peuc-and-pua/). --- ## Illinois SNAP: How Benefits Have Changed (2023–2026) PeriodMax Benefit (Family of 4)Key DevelopmentFY2023 (Oct 2022 – Sep 2023)$939/monthPandemic Emergency Allotments ended — biggest single drop since the pandemicFY2024 (Oct 2023 – Sep 2024)$973/month~3.7% COLA increase; first full year post-pandemicFY2025 (Oct 2024 – Sep 2025)$975/monthMinimal ~0.2% increase; OBBB signed into lawFY2026 (Oct 2025 – Sep 2026)$994/month~2% increase; expanded work requirements take effect The end of Emergency Allotments in early 2023 was the biggest disruption in recent memory — some households that had received the maximum saw benefits drop to $23/month. FY2026 numbers are all standard formula, no pandemic additions. Frequently Asked Questions QHow much is SNAP in Illinois in 2026? AThe maximum monthly SNAP benefit in Illinois (IL) for FY2026 is $298 for a single person, $546 for 2 people, $785 for 3 people, $994 for a family of 4, and $1,183 for 5 people. Most households receive less than the maximum based on net income after deductions. QWhen does SNAP deposit to my Illinois EBT card? ABenefits load 1st–20th. Check your approval letter or ABE Illinois for your exact deposit date. QWhat are the income limits for Illinois SNAP in 2026? AIllinois uses a gross income limit of 165% FPL — approximately $2,071/month for a single person or $4,290/month for a family of four. Net income (after deductions) must be at or below 100% FPL. QHow do I apply for SNAP in Illinois? AApply online at https://abe.illinois.gov, in person at a local Illinois Department of Human Services (IDHS) office, or by calling 1-800-843-6154. Processing takes up to 30 days, or 7 days if you qualify for expedited benefits. QWhat can I buy with my Illinois EBT card? ASNAP covers groceries including produce, meat, dairy, bread, cereals, and packaged foods. You can shop in-store at most major grocery chains and online through Amazon Fresh and Walmart Grocery. SNAP does not cover alcohol, tobacco, hot prepared foods, vitamins, or non-food household items. QWhat do I do if my Illinois SNAP application is denied? ARequest a fair hearing within 90 days of your denial notice. Apply online at https://abe.illinois.gov, in person at a local office, or by calling 1-800-843-6154. The agency must explain the specific reason for denial — gather documentation addressing that reason before your hearing. QDid SNAP benefits change in 2026? AYes. The One Big Beautiful Bill (OBBB) expanded work requirements to include adults aged 55–64 and parents of children over 14. It cuts federal SNAP funding by $186 billion over 10 years and shifts some benefit costs to states starting in 2028. QCan I use my Illinois EBT card at Walmart or Amazon? AYes to both. Walmart accepts Illinois EBT in-store and online at walmart.com. Amazon Fresh also accepts SNAP/EBT online — select it as your payment method at checkout. Delivery fees are not covered, only eligible food items. **Categories:** Taxes and Retirement --- ### [Idaho SNAP Benefits: 2027 Outlook, Current 2026 Amounts Up to $994/Month](https://savingtoinvest.com/idaho-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) **Published:** June 22, 2026 **Author:** Andy **Content:** ### Key Takeaways - FY2026 max SNAP benefit: $298/month for 1 person, $994/month for a family of 4 - Benefits load on your Idaho Quest Card (EBT) 1st–10th - The OBBB expanded work requirements to adults 55–64 and parents of teens — if you were exempt before, check whether you still are - Idaho uses the federal 130% FPL income limit — the minimum floor, no expansion - Apply or recertify at Idaho Health & Welfare Benefits or call 211 or 1-800-926-2588 Idaho Health & Welfare Benefits handles SNAP applications and recertifications in Idaho, with benefits loading onto the Idaho Quest Card (EBT) 1st–10th. Fiscal year 2026’s maximum for a family of four is $994 a month, up $19 from last year’s $975. The open question now is what USDA sets for FY2027, expected in late summer. But 2026 is a more complicated year than most for SNAP. The One Big Beautiful Bill (OBBB) made some of the biggest cuts to the program in its history — and some Idaho residents who qualified last year may not qualify now. Here’s what changed, what you can expect to receive, and what to do if you’re denied. Covered in this Article: [Toggle](#) - [2026 SNAP Benefit Amounts in Idaho](#2026_SNAP_Benefit_Amounts_in_Idaho) - [When Does SNAP Deposit to Your Idaho EBT Card?](#When_Does_SNAP_Deposit_to_Your_Idaho_EBT_Card) - [What’s Changed in 2026: OBBB Work Requirements](#Whats_Changed_in_2026_OBBB_Work_Requirements) - [How to Qualify for Idaho SNAP in 2026](#How_to_Qualify_for_Idaho_SNAP_in_2026) - [How to Apply](#How_to_Apply) - [What to Do If Your Idaho SNAP Application Is Denied](#What_to_Do_If_Your_Idaho_SNAP_Application_Is_Denied) - [What to Watch: Potential SNAP Changes Ahead](#What_to_Watch_Potential_SNAP_Changes_Ahead) - [Where Can You Use Your Idaho EBT Card?](#Where_Can_You_Use_Your_Idaho_EBT_Card) - [Other Benefits If You Receive Idaho SNAP](#Other_Benefits_If_You_Receive_Idaho_SNAP) - [Idaho SNAP: How Benefits Have Changed (2023–2026)](#Idaho_SNAP_How_Benefits_Have_Changed_2023%E2%80%932026) ## 2026 SNAP Benefit Amounts in Idaho Idaho uses the standard federal SNAP benefit schedule. Maximum monthly allotments for FY2026 (October 1, 2025 – September 30, 2026): Household SizeMax Monthly BenefitGross Income Limit (130% FPL)Net Income Limit (100% FPL)1 person$298$1,632/mo$1,255/mo2 people$546$2,214/mo$1,703/mo3 people$785$2,798/mo$2,152/mo4 people$994$3,380/mo$2,600/mo5 people$1,183$3,964/mo$3,049/mo6 people$1,421$4,546/mo$3,497/mo7 people$1,571$5,128/mo$3,945/mo8+ people$1,791+—— **Idaho (ID) uses the federal 130% FPL income standard** — the minimum floor, no expansion. A family of four must have gross income at or below **$3,380/month** to qualify. This is one of the stricter limits nationally. Most households receive less than the maximum. Your actual benefit depends on net income after deductions (rent, utilities, child care, medical expenses for elderly or disabled members). ### How Much Would a Family of 4 Actually Receive in Idaho? Here are two realistic examples to show the range: **Scenario A — Lower-income family** A family of 4 with gross monthly income of **$1,500** (one parent working part-time): - Gross income: $1,500 ✓ (within $3,380/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$300 - Net income: $983 - 30% of net income: $295 - **Monthly SNAP benefit: $994 − $295 = $699** **Scenario B — Working family (moderate income)** A family of 4 with gross monthly income of **$2,000**: - Gross income: $2,000 ✓ (within $3,380/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$400 - Net income: $1,383 - 30% of net income: $415 - **Monthly SNAP benefit: $994 − $415 = $579** The 20% earned income deduction rewards working households. Additional deductions for excess shelter costs, child care, or medical expenses (elderly/disabled) can increase your benefit further. ## When Does SNAP Deposit to Your Idaho EBT Card? Idaho (ID) distributes SNAP benefits based on the **last digit of your case number**. Benefits load between the 1st–10th each month: Case # Last DigitDeposit Date11st22nd33rd44th55th66th77th88th99th010th Your case number is on your approval letter or available through [Idaho Health & Welfare Benefits](https://healthandwelfare.idaho.gov/snap). Call **211 or 1-800-926-2588** if you’re unsure of your deposit date — it stays the same each month once you’re approved. TANF cash benefits (if applicable) follow a separate deposit schedule. ## What’s Changed in 2026: OBBB Work Requirements The OBBB made several significant changes that took effect in late 2025 and early 2026: **Expanded work requirements**: Adults aged **55–64** who are able to work are now subject to SNAP work requirements for the first time. Previously the cutoff was 49. Parents whose youngest child is **over 14** are also now subject to work rules. **20 hours per week or 80 hours per month** — that’s the threshold for Able-Bodied Adults Without Dependents (ABAWDs) aged 18–64. Work, job training, or approved volunteer activity all count. Fail to meet the requirement and benefits are limited to **3 months in any 36-month period**. **State cost-sharing starting in 2028**: States will begin paying a share of benefit costs based on their SNAP payment error rate. This is new territory for all state budgets. **$186 billion in total federal SNAP cuts** over the next decade. If you were receiving SNAP in 2024 and haven’t recertified recently, check your current eligibility — the rules have shifted. ## How to Qualify for Idaho SNAP in 2026 **Income**: Gross income must be at or below 130% FPL (see table above). Net income (after deductions) must be at or below 100% FPL. **Residency**: Must be a Idaho resident. **Citizenship**: U.S. citizens and certain lawfully present immigrants qualify. Undocumented individuals are not eligible for federal SNAP benefits. **Work requirements**: Most able-bodied adults 18–64 must register for work and accept suitable employment. ABAWDs must meet the 80-hour/month work, training, or volunteer threshold. New in 2026: adults 55–64 are now included. ## How to Apply - **Online**: [Idaho Health & Welfare Benefits](https://healthandwelfare.idaho.gov/snap) — fastest option, available 24/7 - **In person**: Any local Idaho Department of Health & Welfare office - **Phone**: 211 or 1-800-926-2588 Idaho has up to **30 days** to process your application — or **7 days** if you qualify for expedited SNAP (very low income or resources). Benefits are backdated to your application date. Things can shift quickly. I’ll update this page when anything changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What to Do If Your Idaho SNAP Application Is Denied Denials are common and often appealable. The most frequent reasons are income slightly over the stated limit, missing documentation, and work requirement issues — all of which can be addressed. **Step 1**: Read your denial notice carefully. Idaho is required to explain the specific reason in writing. **Step 2**: Gather documentation that addresses the reason — recent pay stubs, rent receipts, proof of work activities, or a letter from your employer if hours changed. **Step 3**: Request a fair hearing within **90 days** of your denial. You can request one online at [Idaho Health & Welfare Benefits](https://healthandwelfare.idaho.gov/snap), in person at your local Idaho Department of Health & Welfare office, or by calling **211 or 1-800-926-2588**. **Step 4**: While your appeal is pending, you can continue receiving benefits if you were previously approved — request continued benefits when you file your hearing request. --- ## What to Watch: Potential SNAP Changes Ahead **State cost-sharing (FY2027–2028)**: Starting in FY2027, Idaho will begin paying a share of SNAP benefit costs — a first for all states. The percentage depends on Idaho’s payment error rate. If cost pressure builds, expect tighter eligibility administration at the state level. **Work requirement enforcement**: Federal guidance on the expanded age 55–64 rules is still evolving. States are implementing these in phases — if you’re in the newly covered age range, check with your caseworker. **FY2027 COLA adjustment**: Benefits update October 1. I’ll post FY2027 amounts here when USDA releases them (typically late summer 2026). Things can shift quickly — [Subscribe or follow us ↗](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates. --- ## Where Can You Use Your Idaho EBT Card? **In stores**: Any USDA-authorized retailer — including Walmart, Fred Meyer, WinCo Foods, Albertsons, Broulim’s, and most independent grocery stores. Look for the EBT/SNAP sign at checkout. **Online**: Idaho SNAP recipients can shop online through **Amazon Fresh** and **Walmart Grocery** — select SNAP/EBT as your payment method at checkout. Delivery fees are not covered by SNAP (only the groceries themselves). **Farmers markets**: Many Idaho farmers markets accept EBT. Some participate in the Double Up Food Bucks program, which matches SNAP dollars on locally-grown produce. **What SNAP does NOT cover**: Alcohol, tobacco, vitamins/supplements, hot prepared foods, fast food, pet food, household supplies, or hygiene products. ## Other Benefits If You Receive Idaho SNAP SNAP often unlocks access to other programs: - **Medicaid / CHIP**: Receiving SNAP can streamline Medicaid enrollment for adults and children. Apply through [Idaho Health & Welfare Benefits](https://healthandwelfare.idaho.gov/snap). - **LIHEAP**: Low Income Home Energy Assistance helps with utility bills. Contact your local community action agency or call 2-1-1. - **WIC**: Nutrition support for pregnant women, new mothers, and children under 5. Separate application through your state health department. - **Summer EBT (SUN Bucks)**: Extra food benefits for school-age children during summer months. Check with your state for 2026 enrollment. - **Free/reduced school meals**: SNAP households automatically qualify. Register through your child’s school district. For a full overview of federal SNAP amounts and recent cuts, see the [2026 SNAP benefits guide](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). See also: [Idaho unemployment benefit amounts and eligibility rules](https://savingtoinvest.com/idaho-unemployment-benefits/). --- ## Idaho SNAP: How Benefits Have Changed (2023–2026) PeriodMax Benefit (Family of 4)Key DevelopmentFY2023 (Oct 2022 – Sep 2023)$939/monthPandemic Emergency Allotments ended — biggest single drop since the pandemicFY2024 (Oct 2023 – Sep 2024)$973/month~3.7% COLA increase; first full year post-pandemicFY2025 (Oct 2024 – Sep 2025)$975/monthMinimal ~0.2% increase; OBBB signed into lawFY2026 (Oct 2025 – Sep 2026)$994/month~2% increase; expanded work requirements take effect The end of Emergency Allotments in early 2023 was the biggest disruption in recent memory — some households that had received the maximum saw benefits drop to $23/month. FY2026 numbers are all standard formula, no pandemic additions. Frequently Asked Questions QHow much is SNAP in Idaho in 2026? AThe maximum monthly SNAP benefit in Idaho (ID) for FY2026 is $298 for a single person, $546 for 2 people, $785 for 3 people, $994 for a family of 4, and $1,183 for 5 people. Most households receive less than the maximum based on net income after deductions. QWhen does SNAP deposit to my Idaho EBT card? ABenefits load 1st–10th. Check your approval letter or Idaho Health & Welfare Benefits for your exact deposit date. QWhat are the income limits for Idaho SNAP in 2026? AIdaho uses a gross income limit of 130% FPL — approximately $1,632/month for a single person or $3,380/month for a family of four. Net income (after deductions) must be at or below 100% FPL. QHow do I apply for SNAP in Idaho? AApply online at https://healthandwelfare.idaho.gov/snap, in person at a local Idaho Department of Health & Welfare (DHW) office, or by calling 211 or 1-800-926-2588. Processing takes up to 30 days, or 7 days if you qualify for expedited benefits. QWhat can I buy with my Idaho EBT card? ASNAP covers groceries including produce, meat, dairy, bread, cereals, and packaged foods. You can shop in-store at most major grocery chains and online through Amazon Fresh and Walmart Grocery. SNAP does not cover alcohol, tobacco, hot prepared foods, vitamins, or non-food household items. QWhat do I do if my Idaho SNAP application is denied? ARequest a fair hearing within 90 days of your denial notice. Apply online at https://healthandwelfare.idaho.gov/snap, in person at a local office, or by calling 211 or 1-800-926-2588. The agency must explain the specific reason for denial — gather documentation addressing that reason before your hearing. QDid SNAP benefits change in 2026? AYes. The One Big Beautiful Bill (OBBB) expanded work requirements to include adults aged 55–64 and parents of children over 14. It cuts federal SNAP funding by $186 billion over 10 years and shifts some benefit costs to states starting in 2028. QCan I use my Idaho EBT card at Walmart or Amazon? AYes to both. Walmart accepts Idaho EBT in-store and online at walmart.com. Amazon Fresh also accepts SNAP/EBT online — select it as your payment method at checkout. Delivery fees are not covered, only eligible food items. **Categories:** Taxes and Retirement --- ### [Hawaii SNAP Benefits: 2027 Outlook, Current 2026 Amounts Up to $994/Month](https://savingtoinvest.com/hawaii-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) **Published:** June 22, 2026 **Author:** Andy **Content:** ### Key Takeaways - FY2026 max SNAP benefit: $298/month for 1 person, $994/month for a family of 4 - Benefits load on your Hawaii EBT Card 3rd–5th - The OBBB expanded work requirements to adults 55–64 and parents of teens — if you were exempt before, check whether you still are - Hawaii uses BBCE at 200% FPL — more households qualify than in standard states - Apply or recertify at Hawaii Benefits Portal or call 808-586-5758 Hawaii benefits go out on the Hawaii EBT Card 3rd–5th, and Hawaii uses Broad-Based Categorical Eligibility at 200% of the poverty line, so more households qualify here than in states that stick to the federal floor. The max for a family of four in fiscal year 2026 is $994 a month, up from $975 last year. The open question now is what USDA sets for FY2027, expected in late summer. But 2026 is a more complicated year than most for SNAP. The One Big Beautiful Bill (OBBB) made some of the biggest cuts to the program in its history — and some Hawaii residents who qualified last year may not qualify now. Here’s what changed, what you can expect to receive, and what to do if you’re denied. Covered in this Article: [Toggle](#) - [2026 SNAP Benefit Amounts in Hawaii](#2026_SNAP_Benefit_Amounts_in_Hawaii) - [When Does SNAP Deposit to Your Hawaii EBT Card?](#When_Does_SNAP_Deposit_to_Your_Hawaii_EBT_Card) - [What’s Changed in 2026: OBBB Work Requirements](#Whats_Changed_in_2026_OBBB_Work_Requirements) - [How to Qualify for Hawaii SNAP in 2026](#How_to_Qualify_for_Hawaii_SNAP_in_2026) - [How to Apply](#How_to_Apply) - [What to Do If Your Hawaii SNAP Application Is Denied](#What_to_Do_If_Your_Hawaii_SNAP_Application_Is_Denied) - [What to Watch: Potential SNAP Changes Ahead](#What_to_Watch_Potential_SNAP_Changes_Ahead) - [Where Can You Use Your Hawaii EBT Card?](#Where_Can_You_Use_Your_Hawaii_EBT_Card) - [Other Benefits If You Receive Hawaii SNAP](#Other_Benefits_If_You_Receive_Hawaii_SNAP) - [Hawaii SNAP: How Benefits Have Changed (2023–2026)](#Hawaii_SNAP_How_Benefits_Have_Changed_2023%E2%80%932026) ## 2026 SNAP Benefit Amounts in Hawaii Hawaii uses the standard federal SNAP benefit schedule. Maximum monthly allotments for FY2026 (October 1, 2025 – September 30, 2026): Household SizeMax Monthly BenefitGross Income Limit (200% FPL)Net Income Limit (100% FPL)1 person$298$2,510/mo$1,255/mo2 people$546$3,406/mo$1,703/mo3 people$785$4,304/mo$2,152/mo4 people$994$5,200/mo$2,600/mo5 people$1,183$6,098/mo$3,049/mo6 people$1,421$6,994/mo$3,497/mo7 people$1,571$7,890/mo$3,945/mo8+ people$1,791+—— **Hawaii (HI) uses BBCE at 200% FPL** — significantly more generous than the 130% federal floor. A family of four can qualify with gross income up to **$5,200/month**, compared to just $3,380/month in the most restrictive states. Most households receive less than the maximum. Your actual benefit depends on net income after deductions (rent, utilities, child care, medical expenses for elderly or disabled members). ### How Much Would a Family of 4 Actually Receive in Hawaii? Here are two realistic examples to show the range: **Scenario A — Lower-income family** A family of 4 with gross monthly income of **$1,500** (one parent working part-time): - Gross income: $1,500 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$300 - Net income: $983 - 30% of net income: $295 - **Monthly SNAP benefit: $994 − $295 = $699** **Scenario B — Working family (moderate income)** A family of 4 with gross monthly income of **$3,200**: - Gross income: $3,200 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$640 - Net income: $2,343 - 30% of net income: $703 - **Monthly SNAP benefit: $994 − $703 = $291** The 20% earned income deduction rewards working households. Additional deductions for excess shelter costs, child care, or medical expenses (elderly/disabled) can increase your benefit further. ## When Does SNAP Deposit to Your Hawaii EBT Card? Hawaii (HI) distributes SNAP benefits based on the **first letter of your last name**. Benefits load between the 3rd–5th: Last Name Starts WithDeposit DateA–E3rdF–J4thK–N4thO–T4thU–Z5th Your case number is on your approval letter or available through [Hawaii Benefits Portal](https://benefits.hawaii.gov). Call **808-586-5758** if you’re unsure of your deposit date — it stays the same each month once you’re approved. TANF cash benefits (if applicable) follow a separate deposit schedule. ## What’s Changed in 2026: OBBB Work Requirements The OBBB made several significant changes that took effect in late 2025 and early 2026: **Expanded work requirements**: Adults aged **55–64** who are able to work are now subject to SNAP work requirements for the first time. Previously the cutoff was 49. Parents whose youngest child is **over 14** are also now subject to work rules. **20 hours per week or 80 hours per month** — that’s the threshold for Able-Bodied Adults Without Dependents (ABAWDs) aged 18–64. Work, job training, or approved volunteer activity all count. Fail to meet the requirement and benefits are limited to **3 months in any 36-month period**. **State cost-sharing starting in 2028**: States will begin paying a share of benefit costs based on their SNAP payment error rate. This is new territory for all state budgets. **$186 billion in total federal SNAP cuts** over the next decade. If you were receiving SNAP in 2024 and haven’t recertified recently, check your current eligibility — the rules have shifted. ## How to Qualify for Hawaii SNAP in 2026 **Income**: Gross income must be at or below 200% FPL (see table above). Net income (after deductions) must be at or below 100% FPL. **Residency**: Must be a Hawaii resident. **Citizenship**: U.S. citizens and certain lawfully present immigrants qualify. Undocumented individuals are not eligible for federal SNAP benefits. **Work requirements**: Most able-bodied adults 18–64 must register for work and accept suitable employment. ABAWDs must meet the 80-hour/month work, training, or volunteer threshold. New in 2026: adults 55–64 are now included. ## How to Apply - **Online**: [Hawaii Benefits Portal](https://benefits.hawaii.gov) — fastest option, available 24/7 - **In person**: Any local Hawaii Department of Human Services office - **Phone**: 808-586-5758 Hawaii has up to **30 days** to process your application — or **7 days** if you qualify for expedited SNAP (very low income or resources). Benefits are backdated to your application date. Things can shift quickly. I’ll update this page when anything changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What to Do If Your Hawaii SNAP Application Is Denied Denials are common and often appealable. The most frequent reasons are income slightly over the stated limit, missing documentation, and work requirement issues — all of which can be addressed. **Step 1**: Read your denial notice carefully. Hawaii is required to explain the specific reason in writing. **Step 2**: Gather documentation that addresses the reason — recent pay stubs, rent receipts, proof of work activities, or a letter from your employer if hours changed. **Step 3**: Request a fair hearing within **90 days** of your denial. You can request one online at [Hawaii Benefits Portal](https://benefits.hawaii.gov), in person at your local Hawaii Department of Human Services office, or by calling **808-586-5758**. **Step 4**: While your appeal is pending, you can continue receiving benefits if you were previously approved — request continued benefits when you file your hearing request. --- ## What to Watch: Potential SNAP Changes Ahead **State cost-sharing (FY2027–2028)**: Starting in FY2027, Hawaii will begin paying a share of SNAP benefit costs — a first for all states. The percentage depends on Hawaii’s payment error rate. If cost pressure builds, expect tighter eligibility administration at the state level. **Work requirement enforcement**: Federal guidance on the expanded age 55–64 rules is still evolving. States are implementing these in phases — if you’re in the newly covered age range, check with your caseworker. **BBCE at risk**: Hawaii’s 200% FPL income limit narrowly survived the OBBB — earlier versions of the legislation would have eliminated it. If BBCE is eliminated in future legislation, the income limit for a family of 4 would drop from $5,200/month to $3,380/month. **FY2027 COLA adjustment**: Benefits update October 1. I’ll post FY2027 amounts here when USDA releases them (typically late summer 2026). Things can shift quickly — [Subscribe or follow us ↗](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates. --- ## Where Can You Use Your Hawaii EBT Card? **In stores**: Any USDA-authorized retailer — including Walmart, Times Supermarkets, Foodland, Don Quijote, Safeway, and most independent grocery stores. Look for the EBT/SNAP sign at checkout. **Online**: Hawaii SNAP recipients can shop online through **Amazon Fresh** and **Walmart Grocery** — select SNAP/EBT as your payment method at checkout. Delivery fees are not covered by SNAP (only the groceries themselves). **Farmers markets**: Many Hawaii farmers markets accept EBT. Some participate in the Double Up Food Bucks program, which matches SNAP dollars on locally-grown produce. **What SNAP does NOT cover**: Alcohol, tobacco, vitamins/supplements, hot prepared foods, fast food, pet food, household supplies, or hygiene products. Hawaii has higher maximum SNAP benefits than the contiguous 48 states due to geographic cost adjustments — check the FY2026 Hawaii-specific benefit table at the state portal. ## Other Benefits If You Receive Hawaii SNAP SNAP often unlocks access to other programs: - **Medicaid / CHIP**: Receiving SNAP can streamline Medicaid enrollment for adults and children. Apply through [Hawaii Benefits Portal](https://benefits.hawaii.gov). - **LIHEAP**: Low Income Home Energy Assistance helps with utility bills. Contact your local community action agency or call 2-1-1. - **WIC**: Nutrition support for pregnant women, new mothers, and children under 5. Separate application through your state health department. - **Summer EBT (SUN Bucks)**: Extra food benefits for school-age children during summer months. Check with your state for 2026 enrollment. - **Free/reduced school meals**: SNAP households automatically qualify. Register through your child’s school district. For a full overview of federal SNAP amounts and recent cuts, see the [2026 SNAP benefits guide](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). See also: [Hawaii unemployment benefit amounts and eligibility rules](https://savingtoinvest.com/hawaii-unemployment-benefits/). --- ## Hawaii SNAP: How Benefits Have Changed (2023–2026) PeriodMax Benefit (Family of 4)Key DevelopmentFY2023 (Oct 2022 – Sep 2023)$939/monthPandemic Emergency Allotments ended — biggest single drop since the pandemicFY2024 (Oct 2023 – Sep 2024)$973/month~3.7% COLA increase; first full year post-pandemicFY2025 (Oct 2024 – Sep 2025)$975/monthMinimal ~0.2% increase; OBBB signed into lawFY2026 (Oct 2025 – Sep 2026)$994/month~2% increase; expanded work requirements take effect The end of Emergency Allotments in early 2023 was the biggest disruption in recent memory — some households that had received the maximum saw benefits drop to $23/month. FY2026 numbers are all standard formula, no pandemic additions. Frequently Asked Questions QHow much is SNAP in Hawaii in 2026? AThe maximum monthly SNAP benefit in Hawaii (HI) for FY2026 is $298 for a single person, $546 for 2 people, $785 for 3 people, $994 for a family of 4, and $1,183 for 5 people. Most households receive less than the maximum based on net income after deductions. QWhen does SNAP deposit to my Hawaii EBT card? ABenefits load 3rd–5th. Check your approval letter or Hawaii Benefits Portal for your exact deposit date. QWhat are the income limits for Hawaii SNAP in 2026? AHawaii uses a gross income limit of 200% FPL — approximately $2,510/month for a single person or $5,200/month for a family of four. Net income (after deductions) must be at or below 100% FPL. QHow do I apply for SNAP in Hawaii? AApply online at https://benefits.hawaii.gov, in person at a local Hawaii Department of Human Services (DHS) office, or by calling 808-586-5758. Processing takes up to 30 days, or 7 days if you qualify for expedited benefits. QWhat can I buy with my Hawaii EBT card? ASNAP covers groceries including produce, meat, dairy, bread, cereals, and packaged foods. You can shop in-store at most major grocery chains and online through Amazon Fresh and Walmart Grocery. SNAP does not cover alcohol, tobacco, hot prepared foods, vitamins, or non-food household items. QWhat do I do if my Hawaii SNAP application is denied? ARequest a fair hearing within 90 days of your denial notice. Apply online at https://benefits.hawaii.gov, in person at a local office, or by calling 808-586-5758. The agency must explain the specific reason for denial — gather documentation addressing that reason before your hearing. QDid SNAP benefits change in 2026? AYes. The One Big Beautiful Bill (OBBB) expanded work requirements to include adults aged 55–64 and parents of children over 14. It cuts federal SNAP funding by $186 billion over 10 years and shifts some benefit costs to states starting in 2028. QCan I use my Hawaii EBT card at Walmart or Amazon? AYes to both. Walmart accepts Hawaii EBT in-store and online at walmart.com. Amazon Fresh also accepts SNAP/EBT online — select it as your payment method at checkout. Delivery fees are not covered, only eligible food items. **Categories:** Taxes and Retirement --- ### [Georgia SNAP Benefits: 2027 Outlook, Current 2026 Amounts Up to $994/Month](https://savingtoinvest.com/georgia-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) **Published:** June 22, 2026 **Author:** Andy **Content:** ### Key Takeaways - FY2026 max SNAP benefit: $298/month for 1 person, $994/month for a family of 4 - Benefits load on your Georgia EBT Card 5th–23rd - The OBBB expanded work requirements to adults 55–64 and parents of teens — if you were exempt before, check whether you still are - Georgia uses the federal 130% FPL income limit — the minimum floor, no expansion - Apply or recertify at Georgia Gateway or call 877-423-4746 If you’re applying for or renewing SNAP in Georgia, benefits load onto the Georgia EBT Card 5th–23rd through Georgia Gateway. The fiscal year 2026 maximum for a family of four is $994 a month, up from $975 last year. The open question now is what USDA sets for FY2027, expected in late summer. But 2026 is a more complicated year than most for SNAP. The One Big Beautiful Bill (OBBB) made some of the biggest cuts to the program in its history — and some Georgia residents who qualified last year may not qualify now. Here’s what changed, what you can expect to receive, and what to do if you’re denied. Covered in this Article: [Toggle](#) - [2026 SNAP Benefit Amounts in Georgia](#2026_SNAP_Benefit_Amounts_in_Georgia) - [When Does SNAP Deposit to Your Georgia EBT Card?](#When_Does_SNAP_Deposit_to_Your_Georgia_EBT_Card) - [What’s Changed in 2026: OBBB Work Requirements](#Whats_Changed_in_2026_OBBB_Work_Requirements) - [How to Qualify for Georgia SNAP in 2026](#How_to_Qualify_for_Georgia_SNAP_in_2026) - [How to Apply](#How_to_Apply) - [What to Do If Your Georgia SNAP Application Is Denied](#What_to_Do_If_Your_Georgia_SNAP_Application_Is_Denied) - [What to Watch: Potential SNAP Changes Ahead](#What_to_Watch_Potential_SNAP_Changes_Ahead) - [Where Can You Use Your Georgia EBT Card?](#Where_Can_You_Use_Your_Georgia_EBT_Card) - [Other Benefits If You Receive Georgia SNAP](#Other_Benefits_If_You_Receive_Georgia_SNAP) - [Georgia SNAP: How Benefits Have Changed (2023–2026)](#Georgia_SNAP_How_Benefits_Have_Changed_2023%E2%80%932026) ## 2026 SNAP Benefit Amounts in Georgia Georgia uses the standard federal SNAP benefit schedule. Maximum monthly allotments for FY2026 (October 1, 2025 – September 30, 2026): Household SizeMax Monthly BenefitGross Income Limit (130% FPL)Net Income Limit (100% FPL)1 person$298$1,632/mo$1,255/mo2 people$546$2,214/mo$1,703/mo3 people$785$2,798/mo$2,152/mo4 people$994$3,380/mo$2,600/mo5 people$1,183$3,964/mo$3,049/mo6 people$1,421$4,546/mo$3,497/mo7 people$1,571$5,128/mo$3,945/mo8+ people$1,791+—— **Georgia (GA) uses the federal 130% FPL income standard** — the minimum floor, no expansion. A family of four must have gross income at or below **$3,380/month** to qualify. This is one of the stricter limits nationally. Most households receive less than the maximum. Your actual benefit depends on net income after deductions (rent, utilities, child care, medical expenses for elderly or disabled members). ### How Much Would a Family of 4 Actually Receive in Georgia? Here are two realistic examples to show the range: **Scenario A — Lower-income family** A family of 4 with gross monthly income of **$1,500** (one parent working part-time): - Gross income: $1,500 ✓ (within $3,380/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$300 - Net income: $983 - 30% of net income: $295 - **Monthly SNAP benefit: $994 − $295 = $699** **Scenario B — Working family (moderate income)** A family of 4 with gross monthly income of **$2,000**: - Gross income: $2,000 ✓ (within $3,380/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$400 - Net income: $1,383 - 30% of net income: $415 - **Monthly SNAP benefit: $994 − $415 = $579** The 20% earned income deduction rewards working households. Additional deductions for excess shelter costs, child care, or medical expenses (elderly/disabled) can increase your benefit further. ## When Does SNAP Deposit to Your Georgia EBT Card? Georgia (GA) distributes SNAP benefits based on the **last digit of your case number**. Benefits load between the 5th–23rd each month: Case # Last DigitDeposit Date15th27th39th411th513th615th717th819th921st023rd Your case number is on your approval letter or available through [Georgia Gateway](https://gateway.ga.gov). Call **877-423-4746** if you’re unsure of your deposit date — it stays the same each month once you’re approved. TANF cash benefits (if applicable) follow a separate deposit schedule. ## What’s Changed in 2026: OBBB Work Requirements The OBBB made several significant changes that took effect in late 2025 and early 2026: **Expanded work requirements**: Adults aged **55–64** who are able to work are now subject to SNAP work requirements for the first time. Previously the cutoff was 49. Parents whose youngest child is **over 14** are also now subject to work rules. **20 hours per week or 80 hours per month** — that’s the threshold for Able-Bodied Adults Without Dependents (ABAWDs) aged 18–64. Work, job training, or approved volunteer activity all count. Fail to meet the requirement and benefits are limited to **3 months in any 36-month period**. **State cost-sharing starting in 2028**: States will begin paying a share of benefit costs based on their SNAP payment error rate. This is new territory for all state budgets. **$186 billion in total federal SNAP cuts** over the next decade. If you were receiving SNAP in 2024 and haven’t recertified recently, check your current eligibility — the rules have shifted. ## How to Qualify for Georgia SNAP in 2026 **Income**: Gross income must be at or below 130% FPL (see table above). Net income (after deductions) must be at or below 100% FPL. **Residency**: Must be a Georgia resident. **Citizenship**: U.S. citizens and certain lawfully present immigrants qualify. Undocumented individuals are not eligible for federal SNAP benefits. **Work requirements**: Most able-bodied adults 18–64 must register for work and accept suitable employment. ABAWDs must meet the 80-hour/month work, training, or volunteer threshold. New in 2026: adults 55–64 are now included. ## How to Apply - **Online**: [Georgia Gateway](https://gateway.ga.gov) — fastest option, available 24/7 - **In person**: Any local Georgia Division of Family & Children Services office - **Phone**: 877-423-4746 Georgia has up to **30 days** to process your application — or **7 days** if you qualify for expedited SNAP (very low income or resources). Benefits are backdated to your application date. Things can shift quickly. I’ll update this page when anything changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What to Do If Your Georgia SNAP Application Is Denied Denials are common and often appealable. The most frequent reasons are income slightly over the stated limit, missing documentation, and work requirement issues — all of which can be addressed. **Step 1**: Read your denial notice carefully. Georgia is required to explain the specific reason in writing. **Step 2**: Gather documentation that addresses the reason — recent pay stubs, rent receipts, proof of work activities, or a letter from your employer if hours changed. **Step 3**: Request a fair hearing within **90 days** of your denial. You can request one online at [Georgia Gateway](https://gateway.ga.gov), in person at your local Georgia Division of Family & Children Services office, or by calling **877-423-4746**. **Step 4**: While your appeal is pending, you can continue receiving benefits if you were previously approved — request continued benefits when you file your hearing request. --- ## What to Watch: Potential SNAP Changes Ahead **State cost-sharing (FY2027–2028)**: Starting in FY2027, Georgia will begin paying a share of SNAP benefit costs — a first for all states. The percentage depends on Georgia’s payment error rate. If cost pressure builds, expect tighter eligibility administration at the state level. **Work requirement enforcement**: Federal guidance on the expanded age 55–64 rules is still evolving. States are implementing these in phases — if you’re in the newly covered age range, check with your caseworker. **FY2027 COLA adjustment**: Benefits update October 1. I’ll post FY2027 amounts here when USDA releases them (typically late summer 2026). Things can shift quickly — [Subscribe or follow us ↗](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates. --- ## Where Can You Use Your Georgia EBT Card? **In stores**: Any USDA-authorized retailer — including Walmart, Kroger, Publix, Winn-Dixie, ALDI, Food Depot, and most independent grocery stores. Look for the EBT/SNAP sign at checkout. **Online**: Georgia SNAP recipients can shop online through **Amazon Fresh** and **Walmart Grocery** — select SNAP/EBT as your payment method at checkout. Delivery fees are not covered by SNAP (only the groceries themselves). **Farmers markets**: Many Georgia farmers markets accept EBT. Some participate in the Double Up Food Bucks program, which matches SNAP dollars on locally-grown produce. **What SNAP does NOT cover**: Alcohol, tobacco, vitamins/supplements, hot prepared foods, fast food, pet food, household supplies, or hygiene products. ## Other Benefits If You Receive Georgia SNAP SNAP often unlocks access to other programs: - **Medicaid / CHIP**: Receiving SNAP can streamline Medicaid enrollment for adults and children. Apply through [Georgia Gateway](https://gateway.ga.gov). - **LIHEAP**: Low Income Home Energy Assistance helps with utility bills. Contact your local community action agency or call 2-1-1. - **WIC**: Nutrition support for pregnant women, new mothers, and children under 5. Separate application through your state health department. - **Summer EBT (SUN Bucks)**: Extra food benefits for school-age children during summer months. Check with your state for 2026 enrollment. - **Free/reduced school meals**: SNAP households automatically qualify. Register through your child’s school district. For a full overview of federal SNAP amounts and recent cuts, see the [2026 SNAP benefits guide](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). See also: [Georgia unemployment benefit amounts and eligibility rules](https://savingtoinvest.com/georgia-ga-department-of-labor-600-fpuc-and-pua-for-extra-unemployment-insurance/). --- ## Georgia SNAP: How Benefits Have Changed (2023–2026) PeriodMax Benefit (Family of 4)Key DevelopmentFY2023 (Oct 2022 – Sep 2023)$939/monthPandemic Emergency Allotments ended — biggest single drop since the pandemicFY2024 (Oct 2023 – Sep 2024)$973/month~3.7% COLA increase; first full year post-pandemicFY2025 (Oct 2024 – Sep 2025)$975/monthMinimal ~0.2% increase; OBBB signed into lawFY2026 (Oct 2025 – Sep 2026)$994/month~2% increase; expanded work requirements take effect The end of Emergency Allotments in early 2023 was the biggest disruption in recent memory — some households that had received the maximum saw benefits drop to $23/month. FY2026 numbers are all standard formula, no pandemic additions. Frequently Asked Questions QHow much is SNAP in Georgia in 2026? AThe maximum monthly SNAP benefit in Georgia (GA) for FY2026 is $298 for a single person, $546 for 2 people, $785 for 3 people, $994 for a family of 4, and $1,183 for 5 people. Most households receive less than the maximum based on net income after deductions. QWhen does SNAP deposit to my Georgia EBT card? ABenefits load 5th–23rd. Check your approval letter or Georgia Gateway for your exact deposit date. QWhat are the income limits for Georgia SNAP in 2026? AGeorgia uses a gross income limit of 130% FPL — approximately $1,632/month for a single person or $3,380/month for a family of four. Net income (after deductions) must be at or below 100% FPL. QHow do I apply for SNAP in Georgia? AApply online at https://gateway.ga.gov, in person at a local Georgia Division of Family & Children Services (DFCS) office, or by calling 877-423-4746. Processing takes up to 30 days, or 7 days if you qualify for expedited benefits. QWhat can I buy with my Georgia EBT card? ASNAP covers groceries including produce, meat, dairy, bread, cereals, and packaged foods. You can shop in-store at most major grocery chains and online through Amazon Fresh and Walmart Grocery. SNAP does not cover alcohol, tobacco, hot prepared foods, vitamins, or non-food household items. QWhat do I do if my Georgia SNAP application is denied? ARequest a fair hearing within 90 days of your denial notice. Apply online at https://gateway.ga.gov, in person at a local office, or by calling 877-423-4746. The agency must explain the specific reason for denial — gather documentation addressing that reason before your hearing. QDid SNAP benefits change in 2026? AYes. The One Big Beautiful Bill (OBBB) expanded work requirements to include adults aged 55–64 and parents of children over 14. It cuts federal SNAP funding by $186 billion over 10 years and shifts some benefit costs to states starting in 2028. QCan I use my Georgia EBT card at Walmart or Amazon? AYes to both. Walmart accepts Georgia EBT in-store and online at walmart.com. Amazon Fresh also accepts SNAP/EBT online — select it as your payment method at checkout. Delivery fees are not covered, only eligible food items. **Categories:** Taxes and Retirement --- ### [Delaware SNAP Benefits: 2027 Outlook, Current 2026 Amounts Up to $994/Month](https://savingtoinvest.com/delaware-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) **Published:** June 22, 2026 **Author:** Andy **Content:** ### Key Takeaways - FY2026 max SNAP benefit: $298/month for 1 person, $994/month for a family of 4 - Benefits load on your Delaware Food First Card (EBT) 2nd–23rd - The OBBB expanded work requirements to adults 55–64 and parents of teens — if you were exempt before, check whether you still are - Delaware uses BBCE at 200% FPL — more households qualify than in standard states - Apply or recertify at ASSIST Delaware or call 302-255-9500 A family of four on SNAP in Delaware can get up to $994 a month in fiscal year 2026 — up from $975 last year — deposited onto the Delaware Food First Card (EBT) 2nd–23rd. The open question now is what USDA sets for FY2027, expected in late summer. But 2026 is a more complicated year than most for SNAP. The One Big Beautiful Bill (OBBB) made some of the biggest cuts to the program in its history — and some Delaware residents who qualified last year may not qualify now. Here’s what changed, what you can expect to receive, and what to do if you’re denied. Covered in this Article: [Toggle](#) - [2026 SNAP Benefit Amounts in Delaware](#2026_SNAP_Benefit_Amounts_in_Delaware) - [When Does SNAP Deposit to Your Delaware EBT Card?](#When_Does_SNAP_Deposit_to_Your_Delaware_EBT_Card) - [What’s Changed in 2026: OBBB Work Requirements](#Whats_Changed_in_2026_OBBB_Work_Requirements) - [How to Qualify for Delaware SNAP in 2026](#How_to_Qualify_for_Delaware_SNAP_in_2026) - [How to Apply](#How_to_Apply) - [What to Do If Your Delaware SNAP Application Is Denied](#What_to_Do_If_Your_Delaware_SNAP_Application_Is_Denied) - [What to Watch: Potential SNAP Changes Ahead](#What_to_Watch_Potential_SNAP_Changes_Ahead) - [Where Can You Use Your Delaware EBT Card?](#Where_Can_You_Use_Your_Delaware_EBT_Card) - [Other Benefits If You Receive Delaware SNAP](#Other_Benefits_If_You_Receive_Delaware_SNAP) - [Delaware SNAP: How Benefits Have Changed (2023–2026)](#Delaware_SNAP_How_Benefits_Have_Changed_2023%E2%80%932026) ## 2026 SNAP Benefit Amounts in Delaware Delaware uses the standard federal SNAP benefit schedule. Maximum monthly allotments for FY2026 (October 1, 2025 – September 30, 2026): Household SizeMax Monthly BenefitGross Income Limit (200% FPL)Net Income Limit (100% FPL)1 person$298$2,510/mo$1,255/mo2 people$546$3,406/mo$1,703/mo3 people$785$4,304/mo$2,152/mo4 people$994$5,200/mo$2,600/mo5 people$1,183$6,098/mo$3,049/mo6 people$1,421$6,994/mo$3,497/mo7 people$1,571$7,890/mo$3,945/mo8+ people$1,791+—— **Delaware (DE) uses BBCE at 200% FPL** — significantly more generous than the 130% federal floor. A family of four can qualify with gross income up to **$5,200/month**, compared to just $3,380/month in the most restrictive states. Most households receive less than the maximum. Your actual benefit depends on net income after deductions (rent, utilities, child care, medical expenses for elderly or disabled members). ### How Much Would a Family of 4 Actually Receive in Delaware? Here are two realistic examples to show the range: **Scenario A — Lower-income family** A family of 4 with gross monthly income of **$1,500** (one parent working part-time): - Gross income: $1,500 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$300 - Net income: $983 - 30% of net income: $295 - **Monthly SNAP benefit: $994 − $295 = $699** **Scenario B — Working family (moderate income)** A family of 4 with gross monthly income of **$3,200**: - Gross income: $3,200 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$640 - Net income: $2,343 - 30% of net income: $703 - **Monthly SNAP benefit: $994 − $703 = $291** The 20% earned income deduction rewards working households. Additional deductions for excess shelter costs, child care, or medical expenses (elderly/disabled) can increase your benefit further. ## When Does SNAP Deposit to Your Delaware EBT Card? Delaware (DE) distributes SNAP benefits based on the **first letter of your last name**. Benefits load between the 2nd–23rd: Last Name Starts WithDeposit DateA–E2ndF–J7thK–N12thO–T18thU–Z23rd Your case number is on your approval letter or available through [ASSIST Delaware](https://assist.dhss.delaware.gov). Call **302-255-9500** if you’re unsure of your deposit date — it stays the same each month once you’re approved. TANF cash benefits (if applicable) follow a separate deposit schedule. ## What’s Changed in 2026: OBBB Work Requirements The OBBB made several significant changes that took effect in late 2025 and early 2026: **Expanded work requirements**: Adults aged **55–64** who are able to work are now subject to SNAP work requirements for the first time. Previously the cutoff was 49. Parents whose youngest child is **over 14** are also now subject to work rules. **20 hours per week or 80 hours per month** — that’s the threshold for Able-Bodied Adults Without Dependents (ABAWDs) aged 18–64. Work, job training, or approved volunteer activity all count. Fail to meet the requirement and benefits are limited to **3 months in any 36-month period**. **State cost-sharing starting in 2028**: States will begin paying a share of benefit costs based on their SNAP payment error rate. This is new territory for all state budgets. **$186 billion in total federal SNAP cuts** over the next decade. If you were receiving SNAP in 2024 and haven’t recertified recently, check your current eligibility — the rules have shifted. ## How to Qualify for Delaware SNAP in 2026 **Income**: Gross income must be at or below 200% FPL (see table above). Net income (after deductions) must be at or below 100% FPL. **Residency**: Must be a Delaware resident. **Citizenship**: U.S. citizens and certain lawfully present immigrants qualify. Undocumented individuals are not eligible for federal SNAP benefits. **Work requirements**: Most able-bodied adults 18–64 must register for work and accept suitable employment. ABAWDs must meet the 80-hour/month work, training, or volunteer threshold. New in 2026: adults 55–64 are now included. ## How to Apply - **Online**: [ASSIST Delaware](https://assist.dhss.delaware.gov) — fastest option, available 24/7 - **In person**: Any local Delaware Division of Social Services office - **Phone**: 302-255-9500 Delaware has up to **30 days** to process your application — or **7 days** if you qualify for expedited SNAP (very low income or resources). Benefits are backdated to your application date. Things can shift quickly. I’ll update this page when anything changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What to Do If Your Delaware SNAP Application Is Denied Denials are common and often appealable. The most frequent reasons are income slightly over the stated limit, missing documentation, and work requirement issues — all of which can be addressed. **Step 1**: Read your denial notice carefully. Delaware is required to explain the specific reason in writing. **Step 2**: Gather documentation that addresses the reason — recent pay stubs, rent receipts, proof of work activities, or a letter from your employer if hours changed. **Step 3**: Request a fair hearing within **90 days** of your denial. You can request one online at [ASSIST Delaware](https://assist.dhss.delaware.gov), in person at your local Delaware Division of Social Services office, or by calling **302-255-9500**. **Step 4**: While your appeal is pending, you can continue receiving benefits if you were previously approved — request continued benefits when you file your hearing request. --- ## What to Watch: Potential SNAP Changes Ahead **State cost-sharing (FY2027–2028)**: Starting in FY2027, Delaware will begin paying a share of SNAP benefit costs — a first for all states. The percentage depends on Delaware’s payment error rate. If cost pressure builds, expect tighter eligibility administration at the state level. **Work requirement enforcement**: Federal guidance on the expanded age 55–64 rules is still evolving. States are implementing these in phases — if you’re in the newly covered age range, check with your caseworker. **BBCE at risk**: Delaware’s 200% FPL income limit narrowly survived the OBBB — earlier versions of the legislation would have eliminated it. If BBCE is eliminated in future legislation, the income limit for a family of 4 would drop from $5,200/month to $3,380/month. **FY2027 COLA adjustment**: Benefits update October 1. I’ll post FY2027 amounts here when USDA releases them (typically late summer 2026). Things can shift quickly — [Subscribe or follow us ↗](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates. --- ## Where Can You Use Your Delaware EBT Card? **In stores**: Any USDA-authorized retailer — including Walmart, ACME Markets, ShopRite, Giant Food, ALDI, and most independent grocery stores. Look for the EBT/SNAP sign at checkout. **Online**: Delaware SNAP recipients can shop online through **Amazon Fresh** and **Walmart Grocery** — select SNAP/EBT as your payment method at checkout. Delivery fees are not covered by SNAP (only the groceries themselves). **Farmers markets**: Many Delaware farmers markets accept EBT. Some participate in the Double Up Food Bucks program, which matches SNAP dollars on locally-grown produce. **What SNAP does NOT cover**: Alcohol, tobacco, vitamins/supplements, hot prepared foods, fast food, pet food, household supplies, or hygiene products. ## Other Benefits If You Receive Delaware SNAP SNAP often unlocks access to other programs: - **Medicaid / CHIP**: Receiving SNAP can streamline Medicaid enrollment for adults and children. Apply through [ASSIST Delaware](https://assist.dhss.delaware.gov). - **LIHEAP**: Low Income Home Energy Assistance helps with utility bills. Contact your local community action agency or call 2-1-1. - **WIC**: Nutrition support for pregnant women, new mothers, and children under 5. Separate application through your state health department. - **Summer EBT (SUN Bucks)**: Extra food benefits for school-age children during summer months. Check with your state for 2026 enrollment. - **Free/reduced school meals**: SNAP households automatically qualify. Register through your child’s school district. For a full overview of federal SNAP amounts and recent cuts, see the [2026 SNAP benefits guide](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). See also: [Delaware unemployment benefit amounts and eligibility rules](https://savingtoinvest.com/delaware-unemployment-benefits/). --- ## Delaware SNAP: How Benefits Have Changed (2023–2026) PeriodMax Benefit (Family of 4)Key DevelopmentFY2023 (Oct 2022 – Sep 2023)$939/monthPandemic Emergency Allotments ended — biggest single drop since the pandemicFY2024 (Oct 2023 – Sep 2024)$973/month~3.7% COLA increase; first full year post-pandemicFY2025 (Oct 2024 – Sep 2025)$975/monthMinimal ~0.2% increase; OBBB signed into lawFY2026 (Oct 2025 – Sep 2026)$994/month~2% increase; expanded work requirements take effect The end of Emergency Allotments in early 2023 was the biggest disruption in recent memory — some households that had received the maximum saw benefits drop to $23/month. FY2026 numbers are all standard formula, no pandemic additions. Frequently Asked Questions QHow much is SNAP in Delaware in 2026? AThe maximum monthly SNAP benefit in Delaware (DE) for FY2026 is $298 for a single person, $546 for 2 people, $785 for 3 people, $994 for a family of 4, and $1,183 for 5 people. Most households receive less than the maximum based on net income after deductions. QWhen does SNAP deposit to my Delaware EBT card? ABenefits load 2nd–23rd. Check your approval letter or ASSIST Delaware for your exact deposit date. QWhat are the income limits for Delaware SNAP in 2026? ADelaware uses a gross income limit of 200% FPL — approximately $2,510/month for a single person or $5,200/month for a family of four. Net income (after deductions) must be at or below 100% FPL. QHow do I apply for SNAP in Delaware? AApply online at https://assist.dhss.delaware.gov, in person at a local Delaware Division of Social Services (DSS) office, or by calling 302-255-9500. Processing takes up to 30 days, or 7 days if you qualify for expedited benefits. QWhat can I buy with my Delaware EBT card? ASNAP covers groceries including produce, meat, dairy, bread, cereals, and packaged foods. You can shop in-store at most major grocery chains and online through Amazon Fresh and Walmart Grocery. SNAP does not cover alcohol, tobacco, hot prepared foods, vitamins, or non-food household items. QWhat do I do if my Delaware SNAP application is denied? ARequest a fair hearing within 90 days of your denial notice. Apply online at https://assist.dhss.delaware.gov, in person at a local office, or by calling 302-255-9500. The agency must explain the specific reason for denial — gather documentation addressing that reason before your hearing. QDid SNAP benefits change in 2026? AYes. The One Big Beautiful Bill (OBBB) expanded work requirements to include adults aged 55–64 and parents of children over 14. It cuts federal SNAP funding by $186 billion over 10 years and shifts some benefit costs to states starting in 2028. QCan I use my Delaware EBT card at Walmart or Amazon? AYes to both. Walmart accepts Delaware EBT in-store and online at walmart.com. Amazon Fresh also accepts SNAP/EBT online — select it as your payment method at checkout. Delivery fees are not covered, only eligible food items. **Categories:** Taxes and Retirement --- ### [Connecticut SNAP Benefits: 2027 Outlook, Current 2026 Amounts Up to $994/Month](https://savingtoinvest.com/connecticut-snap-food-stamp-program-latest-updates-and-news/) **Published:** January 17, 2023 **Author:** Andy **Content:** ### Key Takeaways - FY2026 max SNAP benefit: $298/month for 1 person, $994/month for a family of 4 - Benefits load on your Connect Card (EBT) 1st–3rd - The OBBB expanded work requirements to adults 55–64 and parents of teens — if you were exempt before, check whether you still are - Connecticut uses BBCE at 200% FPL — more households qualify than in standard states - Apply or recertify at CT DSS Benefits Portal or call 855-626-6632 Connecticut’s SNAP benefits load onto your Connect Card (EBT) 1st–3rd. The maximum for a family of four is $994 a month in fiscal year 2026, up from $975 last year. The open question now is what USDA sets for FY2027, expected in late summer. But 2026 is a more complicated year than most for SNAP. The One Big Beautiful Bill (OBBB) made some of the biggest cuts to the program in its history — and some Connecticut residents who qualified last year may not qualify now. Here’s what changed, what you can expect to receive, and what to do if you’re denied. Covered in this Article: [Toggle](#) - [2026 SNAP Benefit Amounts in Connecticut](#2026_SNAP_Benefit_Amounts_in_Connecticut) - [When Does SNAP Deposit to Your Connecticut EBT Card?](#When_Does_SNAP_Deposit_to_Your_Connecticut_EBT_Card) - [What’s Changed in 2026: OBBB Work Requirements](#Whats_Changed_in_2026_OBBB_Work_Requirements) - [How to Qualify for Connecticut SNAP in 2026](#How_to_Qualify_for_Connecticut_SNAP_in_2026) - [How to Apply](#How_to_Apply) - [What to Do If Your Connecticut SNAP Application Is Denied](#What_to_Do_If_Your_Connecticut_SNAP_Application_Is_Denied) - [What to Watch: Potential SNAP Changes Ahead](#What_to_Watch_Potential_SNAP_Changes_Ahead) - [Where Can You Use Your Connecticut EBT Card?](#Where_Can_You_Use_Your_Connecticut_EBT_Card) - [Other Benefits If You Receive Connecticut SNAP](#Other_Benefits_If_You_Receive_Connecticut_SNAP) - [Connecticut SNAP: How Benefits Have Changed (2023–2026)](#Connecticut_SNAP_How_Benefits_Have_Changed_2023%E2%80%932026) ## 2026 SNAP Benefit Amounts in Connecticut Connecticut uses the standard federal SNAP benefit schedule. Maximum monthly allotments for FY2026 (October 1, 2025 – September 30, 2026): Household SizeMax Monthly BenefitGross Income Limit (200% FPL)Net Income Limit (100% FPL)1 person$298$2,510/mo$1,255/mo2 people$546$3,406/mo$1,703/mo3 people$785$4,304/mo$2,152/mo4 people$994$5,200/mo$2,600/mo5 people$1,183$6,098/mo$3,049/mo6 people$1,421$6,994/mo$3,497/mo7 people$1,571$7,890/mo$3,945/mo8+ people$1,791+—— **Connecticut (CT) uses BBCE at 200% FPL** — significantly more generous than the 130% federal floor. A family of four can qualify with gross income up to **$5,200/month**, compared to just $3,380/month in the most restrictive states. Most households receive less than the maximum. Your actual benefit depends on net income after deductions (rent, utilities, child care, medical expenses for elderly or disabled members). ### How Much Would a Family of 4 Actually Receive in Connecticut? Here are two realistic examples to show the range: **Scenario A — Lower-income family** A family of 4 with gross monthly income of **$1,500** (one parent working part-time): - Gross income: $1,500 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$300 - Net income: $983 - 30% of net income: $295 - **Monthly SNAP benefit: $994 − $295 = $699** **Scenario B — Working family (moderate income)** A family of 4 with gross monthly income of **$3,200**: - Gross income: $3,200 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$640 - Net income: $2,343 - 30% of net income: $703 - **Monthly SNAP benefit: $994 − $703 = $291** The 20% earned income deduction rewards working households. Additional deductions for excess shelter costs, child care, or medical expenses (elderly/disabled) can increase your benefit further. ## When Does SNAP Deposit to Your Connecticut EBT Card? Connecticut (CT) distributes SNAP benefits between the **1st–8th** each month. Your exact date is based on last two digits of EBT card — check [your state portal](https://mydss.ct.gov) for details. Your benefit date is on your approval letter or at [MyDSS Connecticut](https://mydss.ct.gov). TANF cash benefits (if applicable) follow a separate deposit schedule. ## What’s Changed in 2026: OBBB Work Requirements The OBBB made several significant changes that took effect in late 2025 and early 2026: **Expanded work requirements**: Adults aged **55–64** who are able to work are now subject to SNAP work requirements for the first time. Previously the cutoff was 49. Parents whose youngest child is **over 14** are also now subject to work rules. **20 hours per week or 80 hours per month** — that’s the threshold for Able-Bodied Adults Without Dependents (ABAWDs) aged 18–64. Work, job training, or approved volunteer activity all count. Fail to meet the requirement and benefits are limited to **3 months in any 36-month period**. **State cost-sharing starting in 2028**: States will begin paying a share of benefit costs based on their SNAP payment error rate. This is new territory for all state budgets. **$186 billion in total federal SNAP cuts** over the next decade. If you were receiving SNAP in 2024 and haven’t recertified recently, check your current eligibility — the rules have shifted. ## How to Qualify for Connecticut SNAP in 2026 **Income**: Gross income must be at or below 200% FPL (see table above). Net income (after deductions) must be at or below 100% FPL. **Residency**: Must be a Connecticut resident. **Citizenship**: U.S. citizens and certain lawfully present immigrants qualify. Undocumented individuals are not eligible for federal SNAP benefits. **Work requirements**: Most able-bodied adults 18–64 must register for work and accept suitable employment. ABAWDs must meet the 80-hour/month work, training, or volunteer threshold. New in 2026: adults 55–64 are now included. ## How to Apply - **Online**: [MyDSS Connecticut](https://mydss.ct.gov) — fastest option, available 24/7 - **In person**: Any local Connecticut Department of Social Services office - **Phone**: 855-626-6632 Connecticut has up to **30 days** to process your application — or **7 days** if you qualify for expedited SNAP (very low income or resources). Benefits are backdated to your application date. Things can shift quickly. I’ll update this page when anything changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What to Do If Your Connecticut SNAP Application Is Denied Denials are common and often appealable. The most frequent reasons are income slightly over the stated limit, missing documentation, and work requirement issues — all of which can be addressed. **Step 1**: Read your denial notice carefully. Connecticut is required to explain the specific reason in writing. **Step 2**: Gather documentation that addresses the reason — recent pay stubs, rent receipts, proof of work activities, or a letter from your employer if hours changed. **Step 3**: Request a fair hearing within **90 days** of your denial. You can request one online at [MyDSS Connecticut](https://mydss.ct.gov), in person at your local Connecticut Department of Social Services office, or by calling **855-626-6632**. **Step 4**: While your appeal is pending, you can continue receiving benefits if you were previously approved — request continued benefits when you file your hearing request. --- ## What to Watch: Potential SNAP Changes Ahead **State cost-sharing (FY2027–2028)**: Starting in FY2027, Connecticut will begin paying a share of SNAP benefit costs — a first for all states. The percentage depends on Connecticut’s payment error rate. If cost pressure builds, expect tighter eligibility administration at the state level. **Work requirement enforcement**: Federal guidance on the expanded age 55–64 rules is still evolving. States are implementing these in phases — if you’re in the newly covered age range, check with your caseworker. **BBCE at risk**: Connecticut’s 200% FPL income limit narrowly survived the OBBB — earlier versions of the legislation would have eliminated it. If BBCE is eliminated in future legislation, the income limit for a family of 4 would drop from $5,200/month to $3,380/month. **FY2027 COLA adjustment**: Benefits update October 1. I’ll post FY2027 amounts here when USDA releases them (typically late summer 2026). Things can shift quickly — [Subscribe or follow us ↗](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates. --- ## Where Can You Use Your Connecticut EBT Card? **In stores**: Any USDA-authorized retailer — including Walmart, Stop & Shop, Big Y, ShopRite, ALDI, Whole Foods (eligible items), and most independent grocery stores. Look for the EBT/SNAP sign at checkout. **Online**: Connecticut SNAP recipients can shop online through **Amazon Fresh** and **Walmart Grocery** — select SNAP/EBT as your payment method at checkout. Delivery fees are not covered by SNAP (only the groceries themselves). **Farmers markets**: Many Connecticut farmers markets accept EBT. Some participate in the Double Up Food Bucks program, which matches SNAP dollars on locally-grown produce. **What SNAP does NOT cover**: Alcohol, tobacco, vitamins/supplements, hot prepared foods, fast food, pet food, household supplies, or hygiene products. Connecticut changed its benefit issuance schedule in March 2026 (Public Act No. 24-82). Benefits now spread across the 1st–8th based on the last two digits of your EBT card number, replacing the old first-3-days-of-month schedule. ## Other Benefits If You Receive Connecticut SNAP SNAP often unlocks access to other programs: - **Medicaid / CHIP**: Receiving SNAP can streamline Medicaid enrollment for adults and children. Apply through [MyDSS Connecticut](https://mydss.ct.gov). - **LIHEAP**: Low Income Home Energy Assistance helps with utility bills. Contact your local community action agency or call 2-1-1. - **WIC**: Nutrition support for pregnant women, new mothers, and children under 5. Separate application through your state health department. - **Summer EBT (SUN Bucks)**: Extra food benefits for school-age children during summer months. Check with your state for 2026 enrollment. - **Free/reduced school meals**: SNAP households automatically qualify. Register through your child’s school district. For a full overview of federal SNAP amounts and recent cuts, see the [2026 SNAP benefits guide](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). See also: [Connecticut unemployment benefit amounts and eligibility rules](https://savingtoinvest.com/connecticut-unemployment-benefits/). --- ## Connecticut SNAP: How Benefits Have Changed (2023–2026) PeriodMax Benefit (Family of 4)Key DevelopmentFY2023 (Oct 2022 – Sep 2023)$939/monthPandemic Emergency Allotments ended — biggest single drop since the pandemicFY2024 (Oct 2023 – Sep 2024)$973/month~3.7% COLA increase; first full year post-pandemicFY2025 (Oct 2024 – Sep 2025)$975/monthMinimal ~0.2% increase; OBBB signed into lawFY2026 (Oct 2025 – Sep 2026)$994/month~2% increase; expanded work requirements take effect The end of Emergency Allotments in early 2023 was the biggest disruption in recent memory — some households that had received the maximum saw benefits drop to $23/month. FY2026 numbers are all standard formula, no pandemic additions. Frequently Asked Questions QHow much is SNAP in Connecticut in 2026? AThe maximum monthly SNAP benefit in Connecticut (CT) for FY2026 is $298 for a single person, $546 for 2 people, $785 for 3 people, $994 for a family of 4, and $1,183 for 5 people. Most households receive less than the maximum based on net income after deductions. QWhen does SNAP deposit to my Connecticut EBT card? ABenefits load 1st–3rd. Check your approval letter or CT DSS Benefits Portal for your exact deposit date. QWhat are the income limits for Connecticut SNAP in 2026? AConnecticut uses a gross income limit of 200% FPL — approximately $2,510/month for a single person or $5,200/month for a family of four. Net income (after deductions) must be at or below 100% FPL. QHow do I apply for SNAP in Connecticut? AApply online at https://www.ct.gov/dss/snap, in person at a local Connecticut Department of Social Services (DSS) office, or by calling 855-626-6632. Processing takes up to 30 days, or 7 days if you qualify for expedited benefits. QWhat can I buy with my Connecticut EBT card? ASNAP covers groceries including produce, meat, dairy, bread, cereals, and packaged foods. You can shop in-store at most major grocery chains and online through Amazon Fresh and Walmart Grocery. SNAP does not cover alcohol, tobacco, hot prepared foods, vitamins, or non-food household items. QWhat do I do if my Connecticut SNAP application is denied? ARequest a fair hearing within 90 days of your denial notice. Apply online at https://www.ct.gov/dss/snap, in person at a local office, or by calling 855-626-6632. The agency must explain the specific reason for denial — gather documentation addressing that reason before your hearing. QDid SNAP benefits change in 2026? AYes. The One Big Beautiful Bill (OBBB) expanded work requirements to include adults aged 55–64 and parents of children over 14. It cuts federal SNAP funding by $186 billion over 10 years and shifts some benefit costs to states starting in 2028. QCan I use my Connecticut EBT card at Walmart or Amazon? AYes to both. Walmart accepts Connecticut EBT in-store and online at walmart.com. Amazon Fresh also accepts SNAP/EBT online — select it as your payment method at checkout. Delivery fees are not covered, only eligible food items. **Categories:** Government Rebates and Payments --- ### [California SNAP Benefits: 2027 Outlook, Current 2026 Amounts Up to $994/Month](https://savingtoinvest.com/california-ca-calfresh-snap-program/) **Published:** January 19, 2023 **Author:** Andy **Content:** ### Key Takeaways - FY2026 max SNAP benefit: $298/month for 1 person, $994/month for a family of 4 - Benefits load on your Golden State Advantage Card (EBT) 1st–10th - The OBBB expanded work requirements to adults 55–64 and parents of teens — if you were exempt before, check whether you still are - California uses BBCE at 200% FPL — more households qualify than in standard states - Apply or recertify at GetCalFresh.org or call 877-847-3663 California benefits go out on the Golden State Advantage Card (EBT) 1st–10th, and California uses Broad-Based Categorical Eligibility at 200% of the poverty line, so more households qualify here than in states that stick to the federal floor. The max for a family of four in fiscal year 2026 is $994 a month, up from $975 last year. The open question now is what USDA sets for FY2027, expected in late summer. But 2026 is a more complicated year than most for SNAP. The One Big Beautiful Bill (OBBB) made some of the biggest cuts to the program in its history — and some California residents who qualified last year may not qualify now. Here’s what changed, what you can expect to receive, and what to do if you’re denied. Covered in this Article: [Toggle](#) - [2026 SNAP Benefit Amounts in California](#2026_SNAP_Benefit_Amounts_in_California) - [When Does SNAP Deposit to Your California EBT Card?](#When_Does_SNAP_Deposit_to_Your_California_EBT_Card) - [What’s Changed in 2026: OBBB Work Requirements](#Whats_Changed_in_2026_OBBB_Work_Requirements) - [How to Qualify for California SNAP in 2026](#How_to_Qualify_for_California_SNAP_in_2026) - [How to Apply](#How_to_Apply) - [What to Do If Your California SNAP Application Is Denied](#What_to_Do_If_Your_California_SNAP_Application_Is_Denied) - [What to Watch: Potential SNAP Changes Ahead](#What_to_Watch_Potential_SNAP_Changes_Ahead) - [Where Can You Use Your California EBT Card?](#Where_Can_You_Use_Your_California_EBT_Card) - [Other Benefits If You Receive California SNAP](#Other_Benefits_If_You_Receive_California_SNAP) - [California SNAP: How Benefits Have Changed (2023–2026)](#California_SNAP_How_Benefits_Have_Changed_2023%E2%80%932026) ## 2026 SNAP Benefit Amounts in California California uses the standard federal SNAP benefit schedule. Maximum monthly allotments for FY2026 (October 1, 2025 – September 30, 2026): Household SizeMax Monthly BenefitGross Income Limit (200% FPL)Net Income Limit (100% FPL)1 person$298$2,510/mo$1,255/mo2 people$546$3,406/mo$1,703/mo3 people$785$4,304/mo$2,152/mo4 people$994$5,200/mo$2,600/mo5 people$1,183$6,098/mo$3,049/mo6 people$1,421$6,994/mo$3,497/mo7 people$1,571$7,890/mo$3,945/mo8+ people$1,791+—— **California (CA) uses BBCE at 200% FPL** — significantly more generous than the 130% federal floor. A family of four can qualify with gross income up to **$5,200/month**, compared to just $3,380/month in the most restrictive states. Most households receive less than the maximum. Your actual benefit depends on net income after deductions (rent, utilities, child care, medical expenses for elderly or disabled members). ### How Much Would a Family of 4 Actually Receive in California? Here are two realistic examples to show the range: **Scenario A — Lower-income family** A family of 4 with gross monthly income of **$1,500** (one parent working part-time): - Gross income: $1,500 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$300 - Net income: $983 - 30% of net income: $295 - **Monthly SNAP benefit: $994 − $295 = $699** **Scenario B — Working family (moderate income)** A family of 4 with gross monthly income of **$3,200**: - Gross income: $3,200 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$640 - Net income: $2,343 - 30% of net income: $703 - **Monthly SNAP benefit: $994 − $703 = $291** The 20% earned income deduction rewards working households. Additional deductions for excess shelter costs, child care, or medical expenses (elderly/disabled) can increase your benefit further. ## When Does SNAP Deposit to Your California EBT Card? California (CA) distributes SNAP benefits based on the **last digit of your case number**. Benefits load between the 1st–10th each month: Case # Last DigitDeposit Date11st22nd33rd44th55th66th77th88th99th010th Your case number is on your approval letter or available through [GetCalFresh.org](https://www.getcalfresh.org). Call **877-847-3663** if you’re unsure of your deposit date — it stays the same each month once you’re approved. TANF cash benefits (if applicable) follow a separate deposit schedule. ## What’s Changed in 2026: OBBB Work Requirements The OBBB made several significant changes that took effect in late 2025 and early 2026: **Expanded work requirements**: Adults aged **55–64** who are able to work are now subject to SNAP work requirements for the first time. Previously the cutoff was 49. Parents whose youngest child is **over 14** are also now subject to work rules. **20 hours per week or 80 hours per month** — that’s the threshold for Able-Bodied Adults Without Dependents (ABAWDs) aged 18–64. Work, job training, or approved volunteer activity all count. Fail to meet the requirement and benefits are limited to **3 months in any 36-month period**. **State cost-sharing starting in 2028**: States will begin paying a share of benefit costs based on their SNAP payment error rate. This is new territory for all state budgets. **$186 billion in total federal SNAP cuts** over the next decade. If you were receiving SNAP in 2024 and haven’t recertified recently, check your current eligibility — the rules have shifted. ## How to Qualify for California SNAP in 2026 **Income**: Gross income must be at or below 200% FPL (see table above). Net income (after deductions) must be at or below 100% FPL. **Residency**: Must be a California resident. **Citizenship**: U.S. citizens and certain lawfully present immigrants qualify. Undocumented individuals are not eligible for federal SNAP benefits. **Work requirements**: Most able-bodied adults 18–64 must register for work and accept suitable employment. ABAWDs must meet the 80-hour/month work, training, or volunteer threshold. New in 2026: adults 55–64 are now included. ## How to Apply - **Online**: [GetCalFresh.org](https://www.getcalfresh.org) — fastest option, available 24/7 - **In person**: Any local California Department of Social Services office - **Phone**: 877-847-3663 California has up to **30 days** to process your application — or **7 days** if you qualify for expedited SNAP (very low income or resources). Benefits are backdated to your application date. Things can shift quickly. I’ll update this page when anything changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What to Do If Your California SNAP Application Is Denied Denials are common and often appealable. The most frequent reasons are income slightly over the stated limit, missing documentation, and work requirement issues — all of which can be addressed. **Step 1**: Read your denial notice carefully. California is required to explain the specific reason in writing. **Step 2**: Gather documentation that addresses the reason — recent pay stubs, rent receipts, proof of work activities, or a letter from your employer if hours changed. **Step 3**: Request a fair hearing within **90 days** of your denial. You can request one online at [GetCalFresh.org](https://www.getcalfresh.org), in person at your local California Department of Social Services office, or by calling **877-847-3663**. **Step 4**: While your appeal is pending, you can continue receiving benefits if you were previously approved — request continued benefits when you file your hearing request. --- ## What to Watch: Potential SNAP Changes Ahead **State cost-sharing (FY2027–2028)**: Starting in FY2027, California will begin paying a share of SNAP benefit costs — a first for all states. The percentage depends on California’s payment error rate. If cost pressure builds, expect tighter eligibility administration at the state level. **Work requirement enforcement**: Federal guidance on the expanded age 55–64 rules is still evolving. States are implementing these in phases — if you’re in the newly covered age range, check with your caseworker. **BBCE at risk**: California’s 200% FPL income limit narrowly survived the OBBB — earlier versions of the legislation would have eliminated it. If BBCE is eliminated in future legislation, the income limit for a family of 4 would drop from $5,200/month to $3,380/month. **FY2027 COLA adjustment**: Benefits update October 1. I’ll post FY2027 amounts here when USDA releases them (typically late summer 2026). Things can shift quickly — [Subscribe or follow us ↗](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates. --- ## Where Can You Use Your California EBT Card? **In stores**: Any USDA-authorized retailer — including Walmart, Vons, Ralphs, Safeway, Stater Bros, Trader Joe’s, Grocery Outlet, and most independent grocery stores. Look for the EBT/SNAP sign at checkout. **Online**: California SNAP recipients can shop online through **Amazon Fresh** and **Walmart Grocery** — select SNAP/EBT as your payment method at checkout. Delivery fees are not covered by SNAP (only the groceries themselves). **Farmers markets**: Many California farmers markets accept EBT. Some participate in the Double Up Food Bucks program, which matches SNAP dollars on locally-grown produce. **What SNAP does NOT cover**: Alcohol, tobacco, vitamins/supplements, hot prepared foods, fast food, pet food, household supplies, or hygiene products. California brands its SNAP program as **CalFresh**. Benefits are identical to federal SNAP and load to the Golden State Advantage Card. ## Other Benefits If You Receive California SNAP SNAP often unlocks access to other programs: - **Medicaid / CHIP**: Receiving SNAP can streamline Medicaid enrollment for adults and children. Apply through [GetCalFresh.org](https://www.getcalfresh.org). - **LIHEAP**: Low Income Home Energy Assistance helps with utility bills. Contact your local community action agency or call 2-1-1. - **WIC**: Nutrition support for pregnant women, new mothers, and children under 5. Separate application through your state health department. - **Summer EBT (SUN Bucks)**: Extra food benefits for school-age children during summer months. Check with your state for 2026 enrollment. - **Free/reduced school meals**: SNAP households automatically qualify. Register through your child’s school district. For a full overview of federal SNAP amounts and recent cuts, see the [2026 SNAP benefits guide](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). See also: [California unemployment benefit amounts and eligibility rules](https://savingtoinvest.com/california-unemployment-benefits/). --- ## California SNAP: How Benefits Have Changed (2023–2026) PeriodMax Benefit (Family of 4)Key DevelopmentFY2023 (Oct 2022 – Sep 2023)$939/monthPandemic Emergency Allotments ended — biggest single drop since the pandemicFY2024 (Oct 2023 – Sep 2024)$973/month~3.7% COLA increase; first full year post-pandemicFY2025 (Oct 2024 – Sep 2025)$975/monthMinimal ~0.2% increase; OBBB signed into lawFY2026 (Oct 2025 – Sep 2026)$994/month~2% increase; expanded work requirements take effect The end of Emergency Allotments in early 2023 was the biggest disruption in recent memory — some households that had received the maximum saw benefits drop to $23/month. FY2026 numbers are all standard formula, no pandemic additions. Frequently Asked Questions QHow much is SNAP in California in 2026? AThe maximum monthly SNAP benefit in California (CA) for FY2026 is $298 for a single person, $546 for 2 people, $785 for 3 people, $994 for a family of 4, and $1,183 for 5 people. Most households receive less than the maximum based on net income after deductions. QWhen does SNAP deposit to my California EBT card? ABenefits load 1st–10th. Check your approval letter or GetCalFresh.org for your exact deposit date. QWhat are the income limits for California SNAP in 2026? ACalifornia uses a gross income limit of 200% FPL — approximately $2,510/month for a single person or $5,200/month for a family of four. Net income (after deductions) must be at or below 100% FPL. QHow do I apply for SNAP in California? AApply online at https://www.getcalfresh.org, in person at a local California Department of Social Services (CDSS) office, or by calling 877-847-3663. Processing takes up to 30 days, or 7 days if you qualify for expedited benefits. QWhat can I buy with my California EBT card? ASNAP covers groceries including produce, meat, dairy, bread, cereals, and packaged foods. You can shop in-store at most major grocery chains and online through Amazon Fresh and Walmart Grocery. SNAP does not cover alcohol, tobacco, hot prepared foods, vitamins, or non-food household items. QWhat do I do if my California SNAP application is denied? ARequest a fair hearing within 90 days of your denial notice. Apply online at https://www.getcalfresh.org, in person at a local office, or by calling 877-847-3663. The agency must explain the specific reason for denial — gather documentation addressing that reason before your hearing. QDid SNAP benefits change in 2026? AYes. The One Big Beautiful Bill (OBBB) expanded work requirements to include adults aged 55–64 and parents of children over 14. It cuts federal SNAP funding by $186 billion over 10 years and shifts some benefit costs to states starting in 2028. QCan I use my California EBT card at Walmart or Amazon? AYes to both. Walmart accepts California EBT in-store and online at walmart.com. Amazon Fresh also accepts SNAP/EBT online — select it as your payment method at checkout. Delivery fees are not covered, only eligible food items. **Categories:** Government Rebates and Payments --- ### [Arkansas SNAP Benefits: 2027 Outlook, Current 2026 Amounts Up to $994/Month](https://savingtoinvest.com/arkansas-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) **Published:** June 22, 2026 **Author:** Andy **Content:** ### Key Takeaways - FY2026 max SNAP benefit: $298/month for 1 person, $994/month for a family of 4 - Benefits load on your Arkansas EBT Card 4th–13th - The OBBB expanded work requirements to adults 55–64 and parents of teens — if you were exempt before, check whether you still are - Arkansas uses the federal 130% FPL income limit — the minimum floor, no expansion - Apply or recertify at Arkansas ACCESS or call 501-682-8257 or 2-1-1 If you’re applying for or renewing SNAP in Arkansas, benefits load onto the Arkansas EBT Card 4th–13th through Arkansas ACCESS. The fiscal year 2026 maximum for a family of four is $994 a month, up from $975 last year. The open question now is what USDA sets for FY2027, expected in late summer. But 2026 is a more complicated year than most for SNAP. The One Big Beautiful Bill (OBBB) made some of the biggest cuts to the program in its history — and some Arkansas residents who qualified last year may not qualify now. Here’s what changed, what you can expect to receive, and what to do if you’re denied. Covered in this Article: [Toggle](#) - [2026 SNAP Benefit Amounts in Arkansas](#2026_SNAP_Benefit_Amounts_in_Arkansas) - [When Does SNAP Deposit to Your Arkansas EBT Card?](#When_Does_SNAP_Deposit_to_Your_Arkansas_EBT_Card) - [What’s Changed in 2026: OBBB Work Requirements](#Whats_Changed_in_2026_OBBB_Work_Requirements) - [How to Qualify for Arkansas SNAP in 2026](#How_to_Qualify_for_Arkansas_SNAP_in_2026) - [How to Apply](#How_to_Apply) - [What to Do If Your Arkansas SNAP Application Is Denied](#What_to_Do_If_Your_Arkansas_SNAP_Application_Is_Denied) - [What to Watch: Potential SNAP Changes Ahead](#What_to_Watch_Potential_SNAP_Changes_Ahead) - [Where Can You Use Your Arkansas EBT Card?](#Where_Can_You_Use_Your_Arkansas_EBT_Card) - [Other Benefits If You Receive Arkansas SNAP](#Other_Benefits_If_You_Receive_Arkansas_SNAP) - [Arkansas SNAP: How Benefits Have Changed (2023–2026)](#Arkansas_SNAP_How_Benefits_Have_Changed_2023%E2%80%932026) ## 2026 SNAP Benefit Amounts in Arkansas Arkansas uses the standard federal SNAP benefit schedule. Maximum monthly allotments for FY2026 (October 1, 2025 – September 30, 2026): Household SizeMax Monthly BenefitGross Income Limit (130% FPL)Net Income Limit (100% FPL)1 person$298$1,632/mo$1,255/mo2 people$546$2,214/mo$1,703/mo3 people$785$2,798/mo$2,152/mo4 people$994$3,380/mo$2,600/mo5 people$1,183$3,964/mo$3,049/mo6 people$1,421$4,546/mo$3,497/mo7 people$1,571$5,128/mo$3,945/mo8+ people$1,791+—— **Arkansas (AR) uses the federal 130% FPL income standard** — the minimum floor, no expansion. A family of four must have gross income at or below **$3,380/month** to qualify. This is one of the stricter limits nationally. Most households receive less than the maximum. Your actual benefit depends on net income after deductions (rent, utilities, child care, medical expenses for elderly or disabled members). ### How Much Would a Family of 4 Actually Receive in Arkansas? Here are two realistic examples to show the range: **Scenario A — Lower-income family** A family of 4 with gross monthly income of **$1,500** (one parent working part-time): - Gross income: $1,500 ✓ (within $3,380/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$300 - Net income: $983 - 30% of net income: $295 - **Monthly SNAP benefit: $994 − $295 = $699** **Scenario B — Working family (moderate income)** A family of 4 with gross monthly income of **$2,000**: - Gross income: $2,000 ✓ (within $3,380/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$400 - Net income: $1,383 - 30% of net income: $415 - **Monthly SNAP benefit: $994 − $415 = $579** The 20% earned income deduction rewards working households. Additional deductions for excess shelter costs, child care, or medical expenses (elderly/disabled) can increase your benefit further. ## When Does SNAP Deposit to Your Arkansas EBT Card? Arkansas (AR) distributes SNAP benefits based on the **last digit of your SSN**. Benefits load between the 4th–13th each month: SSN Last DigitDeposit Date14th25th36th47th58th69th710th811th912th013th Your case number is on your approval letter or available through [Arkansas ACCESS](https://access.arkansas.gov). Call **501-682-8257 or 2-1-1** if you’re unsure of your deposit date — it stays the same each month once you’re approved. TANF cash benefits (if applicable) follow a separate deposit schedule. ## What’s Changed in 2026: OBBB Work Requirements The OBBB made several significant changes that took effect in late 2025 and early 2026: **Expanded work requirements**: Adults aged **55–64** who are able to work are now subject to SNAP work requirements for the first time. Previously the cutoff was 49. Parents whose youngest child is **over 14** are also now subject to work rules. **20 hours per week or 80 hours per month** — that’s the threshold for Able-Bodied Adults Without Dependents (ABAWDs) aged 18–64. Work, job training, or approved volunteer activity all count. Fail to meet the requirement and benefits are limited to **3 months in any 36-month period**. **State cost-sharing starting in 2028**: States will begin paying a share of benefit costs based on their SNAP payment error rate. This is new territory for all state budgets. **$186 billion in total federal SNAP cuts** over the next decade. If you were receiving SNAP in 2024 and haven’t recertified recently, check your current eligibility — the rules have shifted. ## How to Qualify for Arkansas SNAP in 2026 **Income**: Gross income must be at or below 130% FPL (see table above). Net income (after deductions) must be at or below 100% FPL. **Residency**: Must be a Arkansas resident. **Citizenship**: U.S. citizens and certain lawfully present immigrants qualify. Undocumented individuals are not eligible for federal SNAP benefits. **Work requirements**: Most able-bodied adults 18–64 must register for work and accept suitable employment. ABAWDs must meet the 80-hour/month work, training, or volunteer threshold. New in 2026: adults 55–64 are now included. ## How to Apply - **Online**: [Arkansas ACCESS](https://access.arkansas.gov) — fastest option, available 24/7 - **In person**: Any local Arkansas Department of Human Services office - **Phone**: 501-682-8257 or 2-1-1 Arkansas has up to **30 days** to process your application — or **7 days** if you qualify for expedited SNAP (very low income or resources). Benefits are backdated to your application date. Things can shift quickly. I’ll update this page when anything changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What to Do If Your Arkansas SNAP Application Is Denied Denials are common and often appealable. The most frequent reasons are income slightly over the stated limit, missing documentation, and work requirement issues — all of which can be addressed. **Step 1**: Read your denial notice carefully. Arkansas is required to explain the specific reason in writing. **Step 2**: Gather documentation that addresses the reason — recent pay stubs, rent receipts, proof of work activities, or a letter from your employer if hours changed. **Step 3**: Request a fair hearing within **90 days** of your denial. You can request one online at [Arkansas ACCESS](https://access.arkansas.gov), in person at your local Arkansas Department of Human Services office, or by calling **501-682-8257 or 2-1-1**. **Step 4**: While your appeal is pending, you can continue receiving benefits if you were previously approved — request continued benefits when you file your hearing request. --- ## What to Watch: Potential SNAP Changes Ahead **State cost-sharing (FY2027–2028)**: Starting in FY2027, Arkansas will begin paying a share of SNAP benefit costs — a first for all states. The percentage depends on Arkansas’s payment error rate. If cost pressure builds, expect tighter eligibility administration at the state level. **Work requirement enforcement**: Federal guidance on the expanded age 55–64 rules is still evolving. States are implementing these in phases — if you’re in the newly covered age range, check with your caseworker. **FY2027 COLA adjustment**: Benefits update October 1. I’ll post FY2027 amounts here when USDA releases them (typically late summer 2026). Things can shift quickly — [Subscribe or follow us ↗](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates. --- ## Where Can You Use Your Arkansas EBT Card? **In stores**: Any USDA-authorized retailer — including Walmart, Harps Food Stores, Kroger, ALDI, Cash Saver, and most independent grocery stores. Look for the EBT/SNAP sign at checkout. **Online**: Arkansas SNAP recipients can shop online through **Amazon Fresh** and **Walmart Grocery** — select SNAP/EBT as your payment method at checkout. Delivery fees are not covered by SNAP (only the groceries themselves). **Farmers markets**: Many Arkansas farmers markets accept EBT. Some participate in the Double Up Food Bucks program, which matches SNAP dollars on locally-grown produce. **What SNAP does NOT cover**: Alcohol, tobacco, vitamins/supplements, hot prepared foods, fast food, pet food, household supplies, or hygiene products. ## Other Benefits If You Receive Arkansas SNAP SNAP often unlocks access to other programs: - **Medicaid / CHIP**: Receiving SNAP can streamline Medicaid enrollment for adults and children. Apply through [Arkansas ACCESS](https://access.arkansas.gov). - **LIHEAP**: Low Income Home Energy Assistance helps with utility bills. Contact your local community action agency or call 2-1-1. - **WIC**: Nutrition support for pregnant women, new mothers, and children under 5. Separate application through your state health department. - **Summer EBT (SUN Bucks)**: Extra food benefits for school-age children during summer months. Check with your state for 2026 enrollment. - **Free/reduced school meals**: SNAP households automatically qualify. Register through your child’s school district. For a full overview of federal SNAP amounts and recent cuts, see the [2026 SNAP benefits guide](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). See also: [Arkansas unemployment benefit amounts and eligibility rules](https://savingtoinvest.com/arkansas-ar-adws-enhanced-unemployment-benefit-programs-fpuc-peuc-and-pua-2021-extension-news-and-updates/). --- ## Arkansas SNAP: How Benefits Have Changed (2023–2026) PeriodMax Benefit (Family of 4)Key DevelopmentFY2023 (Oct 2022 – Sep 2023)$939/monthPandemic Emergency Allotments ended — biggest single drop since the pandemicFY2024 (Oct 2023 – Sep 2024)$973/month~3.7% COLA increase; first full year post-pandemicFY2025 (Oct 2024 – Sep 2025)$975/monthMinimal ~0.2% increase; OBBB signed into lawFY2026 (Oct 2025 – Sep 2026)$994/month~2% increase; expanded work requirements take effect The end of Emergency Allotments in early 2023 was the biggest disruption in recent memory — some households that had received the maximum saw benefits drop to $23/month. FY2026 numbers are all standard formula, no pandemic additions. Frequently Asked Questions QHow much is SNAP in Arkansas in 2026? AThe maximum monthly SNAP benefit in Arkansas (AR) for FY2026 is $298 for a single person, $546 for 2 people, $785 for 3 people, $994 for a family of 4, and $1,183 for 5 people. Most households receive less than the maximum based on net income after deductions. QWhen does SNAP deposit to my Arkansas EBT card? ABenefits load 4th–13th. Check your approval letter or Arkansas ACCESS for your exact deposit date. QWhat are the income limits for Arkansas SNAP in 2026? AArkansas uses a gross income limit of 130% FPL — approximately $1,632/month for a single person or $3,380/month for a family of four. Net income (after deductions) must be at or below 100% FPL. QHow do I apply for SNAP in Arkansas? AApply online at https://access.arkansas.gov, in person at a local Arkansas Department of Human Services (DHS) office, or by calling 501-682-8257 or 2-1-1. Processing takes up to 30 days, or 7 days if you qualify for expedited benefits. QWhat can I buy with my Arkansas EBT card? ASNAP covers groceries including produce, meat, dairy, bread, cereals, and packaged foods. You can shop in-store at most major grocery chains and online through Amazon Fresh and Walmart Grocery. SNAP does not cover alcohol, tobacco, hot prepared foods, vitamins, or non-food household items. QWhat do I do if my Arkansas SNAP application is denied? ARequest a fair hearing within 90 days of your denial notice. Apply online at https://access.arkansas.gov, in person at a local office, or by calling 501-682-8257 or 2-1-1. The agency must explain the specific reason for denial — gather documentation addressing that reason before your hearing. QDid SNAP benefits change in 2026? AYes. The One Big Beautiful Bill (OBBB) expanded work requirements to include adults aged 55–64 and parents of children over 14. It cuts federal SNAP funding by $186 billion over 10 years and shifts some benefit costs to states starting in 2028. QCan I use my Arkansas EBT card at Walmart or Amazon? AYes to both. Walmart accepts Arkansas EBT in-store and online at walmart.com. Amazon Fresh also accepts SNAP/EBT online — select it as your payment method at checkout. Delivery fees are not covered, only eligible food items. **Categories:** Taxes and Retirement --- ### [Arizona SNAP Benefits: 2027 Outlook, Current 2026 Amounts Up to $994/Month](https://savingtoinvest.com/arizona-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) **Published:** June 22, 2026 **Author:** Andy **Content:** ### Key Takeaways - FY2026 max SNAP benefit: $298/month for 1 person, $994/month for a family of 4 - Benefits load on your Arizona Quest Card 1st–13th - The OBBB expanded work requirements to adults 55–64 and parents of teens — if you were exempt before, check whether you still are - Arizona uses BBCE at 185% FPL — more households qualify than in standard states - Apply or recertify at Health-e-Arizona Plus or call 855-432-7587 Arizona uses Broad-Based Categorical Eligibility at 185% of the poverty line, so more households qualify here than in states that stick to the federal floor. Either way, the fiscal year 2026 maximum benefit is the same nationwide: $994 a month for a family of four, up from $975 last year. The open question now is what USDA sets for FY2027, expected in late summer. But 2026 is a more complicated year than most for SNAP. The One Big Beautiful Bill (OBBB) made some of the biggest cuts to the program in its history — and some Arizona residents who qualified last year may not qualify now. Here’s what changed, what you can expect to receive, and what to do if you’re denied. Covered in this Article: [Toggle](#) - [2026 SNAP Benefit Amounts in Arizona](#2026_SNAP_Benefit_Amounts_in_Arizona) - [When Does SNAP Deposit to Your Arizona EBT Card?](#When_Does_SNAP_Deposit_to_Your_Arizona_EBT_Card) - [What’s Changed in 2026: OBBB Work Requirements](#Whats_Changed_in_2026_OBBB_Work_Requirements) - [How to Qualify for Arizona SNAP in 2026](#How_to_Qualify_for_Arizona_SNAP_in_2026) - [How to Apply](#How_to_Apply) - [What to Do If Your Arizona SNAP Application Is Denied](#What_to_Do_If_Your_Arizona_SNAP_Application_Is_Denied) - [What to Watch: Potential SNAP Changes Ahead](#What_to_Watch_Potential_SNAP_Changes_Ahead) - [Where Can You Use Your Arizona EBT Card?](#Where_Can_You_Use_Your_Arizona_EBT_Card) - [Other Benefits If You Receive Arizona SNAP](#Other_Benefits_If_You_Receive_Arizona_SNAP) - [Arizona SNAP: How Benefits Have Changed (2023–2026)](#Arizona_SNAP_How_Benefits_Have_Changed_2023%E2%80%932026) ## 2026 SNAP Benefit Amounts in Arizona Arizona uses the standard federal SNAP benefit schedule. Maximum monthly allotments for FY2026 (October 1, 2025 – September 30, 2026): Household SizeMax Monthly BenefitGross Income Limit (185% FPL)Net Income Limit (100% FPL)1 person$298$2,322/mo$1,255/mo2 people$546$3,151/mo$1,703/mo3 people$785$3,981/mo$2,152/mo4 people$994$4,810/mo$2,600/mo5 people$1,183$5,641/mo$3,049/mo6 people$1,421$6,469/mo$3,497/mo7 people$1,571$7,298/mo$3,945/mo8+ people$1,791+—— **Arizona (AZ) uses BBCE at 185% FPL**, well above the federal floor. A family of four can qualify with gross income up to **$4,810/month** — about $1,430/month more than in non-BBCE states. Most households receive less than the maximum. Your actual benefit depends on net income after deductions (rent, utilities, child care, medical expenses for elderly or disabled members). ### How Much Would a Family of 4 Actually Receive in Arizona? Here are two realistic examples to show the range: **Scenario A — Lower-income family** A family of 4 with gross monthly income of **$1,500** (one parent working part-time): - Gross income: $1,500 ✓ (within $4,810/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$300 - Net income: $983 - 30% of net income: $295 - **Monthly SNAP benefit: $994 − $295 = $699** **Scenario B — Working family (moderate income)** A family of 4 with gross monthly income of **$2,500**: - Gross income: $2,500 ✓ (within $4,810/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$500 - Net income: $1,783 - 30% of net income: $535 - **Monthly SNAP benefit: $994 − $535 = $459** The 20% earned income deduction rewards working households. Additional deductions for excess shelter costs, child care, or medical expenses (elderly/disabled) can increase your benefit further. ## When Does SNAP Deposit to Your Arizona EBT Card? Arizona (AZ) distributes SNAP benefits based on the **first letter of your last name**. Benefits load between the 1st–13th: Last Name Starts WithDeposit DateA–E1stF–J4thK–N7thO–T10thU–Z13th Your case number is on your approval letter or available through [Health-e-Arizona Plus](https://healthearizonaplus.gov). Call **855-432-7587** if you’re unsure of your deposit date — it stays the same each month once you’re approved. TANF cash benefits (if applicable) follow a separate deposit schedule. ## What’s Changed in 2026: OBBB Work Requirements The OBBB made several significant changes that took effect in late 2025 and early 2026: **Expanded work requirements**: Adults aged **55–64** who are able to work are now subject to SNAP work requirements for the first time. Previously the cutoff was 49. Parents whose youngest child is **over 14** are also now subject to work rules. **20 hours per week or 80 hours per month** — that’s the threshold for Able-Bodied Adults Without Dependents (ABAWDs) aged 18–64. Work, job training, or approved volunteer activity all count. Fail to meet the requirement and benefits are limited to **3 months in any 36-month period**. **State cost-sharing starting in 2028**: States will begin paying a share of benefit costs based on their SNAP payment error rate. This is new territory for all state budgets. **$186 billion in total federal SNAP cuts** over the next decade. If you were receiving SNAP in 2024 and haven’t recertified recently, check your current eligibility — the rules have shifted. ## How to Qualify for Arizona SNAP in 2026 **Income**: Gross income must be at or below 185% FPL (see table above). Net income (after deductions) must be at or below 100% FPL. **Residency**: Must be a Arizona resident. **Citizenship**: U.S. citizens and certain lawfully present immigrants qualify. Undocumented individuals are not eligible for federal SNAP benefits. **Work requirements**: Most able-bodied adults 18–64 must register for work and accept suitable employment. ABAWDs must meet the 80-hour/month work, training, or volunteer threshold. New in 2026: adults 55–64 are now included. ## How to Apply - **Online**: [Health-e-Arizona Plus](https://healthearizonaplus.gov) — fastest option, available 24/7 - **In person**: Any local Arizona Department of Economic Security office - **Phone**: 855-432-7587 Arizona has up to **30 days** to process your application — or **7 days** if you qualify for expedited SNAP (very low income or resources). Benefits are backdated to your application date. Things can shift quickly. I’ll update this page when anything changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What to Do If Your Arizona SNAP Application Is Denied Denials are common and often appealable. The most frequent reasons are income slightly over the stated limit, missing documentation, and work requirement issues — all of which can be addressed. **Step 1**: Read your denial notice carefully. Arizona is required to explain the specific reason in writing. **Step 2**: Gather documentation that addresses the reason — recent pay stubs, rent receipts, proof of work activities, or a letter from your employer if hours changed. **Step 3**: Request a fair hearing within **90 days** of your denial. You can request one online at [Health-e-Arizona Plus](https://healthearizonaplus.gov), in person at your local Arizona Department of Economic Security office, or by calling **855-432-7587**. **Step 4**: While your appeal is pending, you can continue receiving benefits if you were previously approved — request continued benefits when you file your hearing request. --- ## What to Watch: Potential SNAP Changes Ahead **State cost-sharing (FY2027–2028)**: Starting in FY2027, Arizona will begin paying a share of SNAP benefit costs — a first for all states. The percentage depends on Arizona’s payment error rate. If cost pressure builds, expect tighter eligibility administration at the state level. **Work requirement enforcement**: Federal guidance on the expanded age 55–64 rules is still evolving. States are implementing these in phases — if you’re in the newly covered age range, check with your caseworker. **BBCE at risk**: Arizona’s 185% FPL income limit narrowly survived the OBBB — earlier versions of the legislation would have eliminated it. If BBCE is eliminated in future legislation, the income limit for a family of 4 would drop from $4,810/month to $3,380/month. **FY2027 COLA adjustment**: Benefits update October 1. I’ll post FY2027 amounts here when USDA releases them (typically late summer 2026). Things can shift quickly — [Subscribe or follow us ↗](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates. --- ## Where Can You Use Your Arizona EBT Card? **In stores**: Any USDA-authorized retailer — including Walmart, Fry’s Food Stores, Safeway, ALDI, Bashas’, Food City, and most independent grocery stores. Look for the EBT/SNAP sign at checkout. **Online**: Arizona SNAP recipients can shop online through **Amazon Fresh** and **Walmart Grocery** — select SNAP/EBT as your payment method at checkout. Delivery fees are not covered by SNAP (only the groceries themselves). **Farmers markets**: Many Arizona farmers markets accept EBT. Some participate in the Double Up Food Bucks program, which matches SNAP dollars on locally-grown produce. **What SNAP does NOT cover**: Alcohol, tobacco, vitamins/supplements, hot prepared foods, fast food, pet food, household supplies, or hygiene products. ## Other Benefits If You Receive Arizona SNAP SNAP often unlocks access to other programs: - **Medicaid / CHIP**: Receiving SNAP can streamline Medicaid enrollment for adults and children. Apply through [Health-e-Arizona Plus](https://healthearizonaplus.gov). - **LIHEAP**: Low Income Home Energy Assistance helps with utility bills. Contact your local community action agency or call 2-1-1. - **WIC**: Nutrition support for pregnant women, new mothers, and children under 5. Separate application through your state health department. - **Summer EBT (SUN Bucks)**: Extra food benefits for school-age children during summer months. Check with your state for 2026 enrollment. - **Free/reduced school meals**: SNAP households automatically qualify. Register through your child’s school district. For a full overview of federal SNAP amounts and recent cuts, see the [2026 SNAP benefits guide](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). See also: [Arizona unemployment benefit amounts and eligibility rules](https://savingtoinvest.com/arizona-az-department-of-economic-security-unemployment-insurance-compensation-600-fpuc-and-pua-delays/). --- ## Arizona SNAP: How Benefits Have Changed (2023–2026) PeriodMax Benefit (Family of 4)Key DevelopmentFY2023 (Oct 2022 – Sep 2023)$939/monthPandemic Emergency Allotments ended — biggest single drop since the pandemicFY2024 (Oct 2023 – Sep 2024)$973/month~3.7% COLA increase; first full year post-pandemicFY2025 (Oct 2024 – Sep 2025)$975/monthMinimal ~0.2% increase; OBBB signed into lawFY2026 (Oct 2025 – Sep 2026)$994/month~2% increase; expanded work requirements take effect The end of Emergency Allotments in early 2023 was the biggest disruption in recent memory — some households that had received the maximum saw benefits drop to $23/month. FY2026 numbers are all standard formula, no pandemic additions. Frequently Asked Questions QHow much is SNAP in Arizona in 2026? AThe maximum monthly SNAP benefit in Arizona (AZ) for FY2026 is $298 for a single person, $546 for 2 people, $785 for 3 people, $994 for a family of 4, and $1,183 for 5 people. Most households receive less than the maximum based on net income after deductions. QWhen does SNAP deposit to my Arizona EBT card? ABenefits load 1st–13th. Check your approval letter or Health-e-Arizona Plus for your exact deposit date. QWhat are the income limits for Arizona SNAP in 2026? AArizona uses a gross income limit of 185% FPL — approximately $2,322/month for a single person or $4,810/month for a family of four. Net income (after deductions) must be at or below 100% FPL. QHow do I apply for SNAP in Arizona? AApply online at https://healthearizonaplus.gov, in person at a local Arizona Department of Economic Security office, or by calling 855-432-7587. Processing takes up to 30 days, or 7 days if you qualify for expedited benefits. QWhat can I buy with my Arizona EBT card? ASNAP covers groceries including produce, meat, dairy, bread, cereals, and packaged foods. You can shop in-store at most major grocery chains and online through Amazon Fresh and Walmart Grocery. SNAP does not cover alcohol, tobacco, hot prepared foods, vitamins, or non-food household items. QWhat do I do if my Arizona SNAP application is denied? ARequest a fair hearing within 90 days of your denial notice. Apply online at https://healthearizonaplus.gov, in person at a local office, or by calling 855-432-7587. The agency must explain the specific reason for denial — gather documentation addressing that reason before your hearing. QDid SNAP benefits change in 2026? AYes. The One Big Beautiful Bill (OBBB) expanded work requirements to include adults aged 55–64 and parents of children over 14. It cuts federal SNAP funding by $186 billion over 10 years and shifts some benefit costs to states starting in 2028. QCan I use my Arizona EBT card at Walmart or Amazon? AYes to both. Walmart accepts Arizona EBT in-store and online at walmart.com. Amazon Fresh also accepts SNAP/EBT online — select it as your payment method at checkout. Delivery fees are not covered, only eligible food items. **Categories:** Taxes and Retirement --- ### [Alaska SNAP Benefits: 2027 Outlook, Current 2026 Amounts Up to $994/Month](https://savingtoinvest.com/alaska-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) **Published:** June 22, 2026 **Author:** Andy **Content:** ### Key Takeaways - FY2026 max SNAP benefit: $298/month for 1 person, $994/month for a family of 4 - Benefits load on your Alaska Quest Card 1st (all recipients) - The OBBB expanded work requirements to adults 55–64 and parents of teens — if you were exempt before, check whether you still are - Alaska uses BBCE at 200% FPL — more households qualify than in standard states - Apply or recertify at myAlaska Benefits or call 907-465-3347 or 1-800-478-7778 A family of four on SNAP in Alaska can get up to $994 a month in fiscal year 2026 — up from $975 last year — deposited onto the Alaska Quest Card 1st (all recipients). The open question now is what USDA sets for FY2027, expected in late summer. But 2026 is a more complicated year than most for SNAP. The One Big Beautiful Bill (OBBB) made some of the biggest cuts to the program in its history — and some Alaska residents who qualified last year may not qualify now. Here’s what changed, what you can expect to receive, and what to do if you’re denied. Covered in this Article: [Toggle](#) - [2026 SNAP Benefit Amounts in Alaska](#2026_SNAP_Benefit_Amounts_in_Alaska) - [When Does SNAP Deposit to Your Alaska EBT Card?](#When_Does_SNAP_Deposit_to_Your_Alaska_EBT_Card) - [What’s Changed in 2026: OBBB Work Requirements](#Whats_Changed_in_2026_OBBB_Work_Requirements) - [How to Qualify for Alaska SNAP in 2026](#How_to_Qualify_for_Alaska_SNAP_in_2026) - [How to Apply](#How_to_Apply) - [What to Do If Your Alaska SNAP Application Is Denied](#What_to_Do_If_Your_Alaska_SNAP_Application_Is_Denied) - [What to Watch: Potential SNAP Changes Ahead](#What_to_Watch_Potential_SNAP_Changes_Ahead) - [Where Can You Use Your Alaska EBT Card?](#Where_Can_You_Use_Your_Alaska_EBT_Card) - [Other Benefits If You Receive Alaska SNAP](#Other_Benefits_If_You_Receive_Alaska_SNAP) - [Alaska SNAP: How Benefits Have Changed (2023–2026)](#Alaska_SNAP_How_Benefits_Have_Changed_2023%E2%80%932026) ## 2026 SNAP Benefit Amounts in Alaska Alaska uses the standard federal SNAP benefit schedule. Maximum monthly allotments for FY2026 (October 1, 2025 – September 30, 2026): Household SizeMax Monthly BenefitGross Income Limit (200% FPL)Net Income Limit (100% FPL)1 person$298$2,510/mo$1,255/mo2 people$546$3,406/mo$1,703/mo3 people$785$4,304/mo$2,152/mo4 people$994$5,200/mo$2,600/mo5 people$1,183$6,098/mo$3,049/mo6 people$1,421$6,994/mo$3,497/mo7 people$1,571$7,890/mo$3,945/mo8+ people$1,791+—— **Alaska (AK) uses BBCE at 200% FPL** — significantly more generous than the 130% federal floor. A family of four can qualify with gross income up to **$5,200/month**, compared to just $3,380/month in the most restrictive states. Most households receive less than the maximum. Your actual benefit depends on net income after deductions (rent, utilities, child care, medical expenses for elderly or disabled members). ### How Much Would a Family of 4 Actually Receive in Alaska? Here are two realistic examples to show the range: **Scenario A — Lower-income family** A family of 4 with gross monthly income of **$1,500** (one parent working part-time): - Gross income: $1,500 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$300 - Net income: $983 - 30% of net income: $295 - **Monthly SNAP benefit: $994 − $295 = $699** **Scenario B — Working family (moderate income)** A family of 4 with gross monthly income of **$3,200**: - Gross income: $3,200 ✓ (within $5,200/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$640 - Net income: $2,343 - 30% of net income: $703 - **Monthly SNAP benefit: $994 − $703 = $291** The 20% earned income deduction rewards working households. Additional deductions for excess shelter costs, child care, or medical expenses (elderly/disabled) can increase your benefit further. ## When Does SNAP Deposit to Your Alaska EBT Card? Alaska (AK) distributes SNAP benefits on a **fixed date** — benefits load on the **1st (all recipients)** for all recipients. Your benefit date is on your approval letter or at [myAlaska Benefits](https://myalaska.state.ak.us). TANF cash benefits (if applicable) follow a separate deposit schedule. ## What’s Changed in 2026: OBBB Work Requirements The OBBB made several significant changes that took effect in late 2025 and early 2026: **Expanded work requirements**: Adults aged **55–64** who are able to work are now subject to SNAP work requirements for the first time. Previously the cutoff was 49. Parents whose youngest child is **over 14** are also now subject to work rules. **20 hours per week or 80 hours per month** — that’s the threshold for Able-Bodied Adults Without Dependents (ABAWDs) aged 18–64. Work, job training, or approved volunteer activity all count. Fail to meet the requirement and benefits are limited to **3 months in any 36-month period**. **State cost-sharing starting in 2028**: States will begin paying a share of benefit costs based on their SNAP payment error rate. This is new territory for all state budgets. **$186 billion in total federal SNAP cuts** over the next decade. If you were receiving SNAP in 2024 and haven’t recertified recently, check your current eligibility — the rules have shifted. ## How to Qualify for Alaska SNAP in 2026 **Income**: Gross income must be at or below 200% FPL (see table above). Net income (after deductions) must be at or below 100% FPL. **Residency**: Must be a Alaska resident. **Citizenship**: U.S. citizens and certain lawfully present immigrants qualify. Undocumented individuals are not eligible for federal SNAP benefits. **Work requirements**: Most able-bodied adults 18–64 must register for work and accept suitable employment. ABAWDs must meet the 80-hour/month work, training, or volunteer threshold. New in 2026: adults 55–64 are now included. ## How to Apply - **Online**: [myAlaska Benefits](https://myalaska.state.ak.us) — fastest option, available 24/7 - **In person**: Any local Alaska Division of Public Assistance office - **Phone**: 907-465-3347 or 1-800-478-7778 Alaska has up to **30 days** to process your application — or **7 days** if you qualify for expedited SNAP (very low income or resources). Benefits are backdated to your application date. Things can shift quickly. I’ll update this page when anything changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What to Do If Your Alaska SNAP Application Is Denied Denials are common and often appealable. The most frequent reasons are income slightly over the stated limit, missing documentation, and work requirement issues — all of which can be addressed. **Step 1**: Read your denial notice carefully. Alaska is required to explain the specific reason in writing. **Step 2**: Gather documentation that addresses the reason — recent pay stubs, rent receipts, proof of work activities, or a letter from your employer if hours changed. **Step 3**: Request a fair hearing within **90 days** of your denial. You can request one online at [myAlaska Benefits](https://myalaska.state.ak.us), in person at your local Alaska Division of Public Assistance office, or by calling **907-465-3347 or 1-800-478-7778**. **Step 4**: While your appeal is pending, you can continue receiving benefits if you were previously approved — request continued benefits when you file your hearing request. --- ## What to Watch: Potential SNAP Changes Ahead **State cost-sharing (FY2027–2028)**: Starting in FY2027, Alaska will begin paying a share of SNAP benefit costs — a first for all states. The percentage depends on Alaska’s payment error rate. If cost pressure builds, expect tighter eligibility administration at the state level. **Work requirement enforcement**: Federal guidance on the expanded age 55–64 rules is still evolving. States are implementing these in phases — if you’re in the newly covered age range, check with your caseworker. **BBCE at risk**: Alaska’s 200% FPL income limit narrowly survived the OBBB — earlier versions of the legislation would have eliminated it. If BBCE is eliminated in future legislation, the income limit for a family of 4 would drop from $5,200/month to $3,380/month. **FY2027 COLA adjustment**: Benefits update October 1. I’ll post FY2027 amounts here when USDA releases them (typically late summer 2026). Things can shift quickly — [Subscribe or follow us ↗](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates. --- ## Where Can You Use Your Alaska EBT Card? **In stores**: Any USDA-authorized retailer — including Walmart, Carrs-Safeway, Fred Meyer, Three Bears, Natural Pantry, and most independent grocery stores. Look for the EBT/SNAP sign at checkout. **Online**: Alaska SNAP recipients can shop online through **Amazon Fresh** and **Walmart Grocery** — select SNAP/EBT as your payment method at checkout. Delivery fees are not covered by SNAP (only the groceries themselves). **Farmers markets**: Many Alaska farmers markets accept EBT. Some participate in the Double Up Food Bucks program, which matches SNAP dollars on locally-grown produce. **What SNAP does NOT cover**: Alcohol, tobacco, vitamins/supplements, hot prepared foods, fast food, pet food, household supplies, or hygiene products. ## Other Benefits If You Receive Alaska SNAP SNAP often unlocks access to other programs: - **Medicaid / CHIP**: Receiving SNAP can streamline Medicaid enrollment for adults and children. Apply through [myAlaska Benefits](https://myalaska.state.ak.us). - **LIHEAP**: Low Income Home Energy Assistance helps with utility bills. Contact your local community action agency or call 2-1-1. - **WIC**: Nutrition support for pregnant women, new mothers, and children under 5. Separate application through your state health department. - **Summer EBT (SUN Bucks)**: Extra food benefits for school-age children during summer months. Check with your state for 2026 enrollment. - **Free/reduced school meals**: SNAP households automatically qualify. Register through your child’s school district. For a full overview of federal SNAP amounts and recent cuts, see the [2026 SNAP benefits guide](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). See also: [Alaska unemployment benefit amounts and eligibility rules](https://savingtoinvest.com/alaska-unemployment-benefits/). --- ## Alaska SNAP: How Benefits Have Changed (2023–2026) PeriodMax Benefit (Family of 4)Key DevelopmentFY2023 (Oct 2022 – Sep 2023)$939/monthPandemic Emergency Allotments ended — biggest single drop since the pandemicFY2024 (Oct 2023 – Sep 2024)$973/month~3.7% COLA increase; first full year post-pandemicFY2025 (Oct 2024 – Sep 2025)$975/monthMinimal ~0.2% increase; OBBB signed into lawFY2026 (Oct 2025 – Sep 2026)$994/month~2% increase; expanded work requirements take effect The end of Emergency Allotments in early 2023 was the biggest disruption in recent memory — some households that had received the maximum saw benefits drop to $23/month. FY2026 numbers are all standard formula, no pandemic additions. Frequently Asked Questions QHow much is SNAP in Alaska in 2026? AThe maximum monthly SNAP benefit in Alaska (AK) for FY2026 is $298 for a single person, $546 for 2 people, $785 for 3 people, $994 for a family of 4, and $1,183 for 5 people. Most households receive less than the maximum based on net income after deductions. QWhen does SNAP deposit to my Alaska EBT card? ABenefits load 1st (all recipients). Check your approval letter or myAlaska Benefits for your exact deposit date. QWhat are the income limits for Alaska SNAP in 2026? AAlaska uses a gross income limit of 200% FPL — approximately $2,510/month for a single person or $5,200/month for a family of four. Net income (after deductions) must be at or below 100% FPL. QHow do I apply for SNAP in Alaska? AApply online at https://myalaska.state.ak.us, in person at a local Alaska Division of Public Assistance office, or by calling 907-465-3347 or 1-800-478-7778. Processing takes up to 30 days, or 7 days if you qualify for expedited benefits. QWhat can I buy with my Alaska EBT card? ASNAP covers groceries including produce, meat, dairy, bread, cereals, and packaged foods. You can shop in-store at most major grocery chains and online through Amazon Fresh and Walmart Grocery. SNAP does not cover alcohol, tobacco, hot prepared foods, vitamins, or non-food household items. QWhat do I do if my Alaska SNAP application is denied? ARequest a fair hearing within 90 days of your denial notice. Apply online at https://myalaska.state.ak.us, in person at a local office, or by calling 907-465-3347 or 1-800-478-7778. The agency must explain the specific reason for denial — gather documentation addressing that reason before your hearing. QDid SNAP benefits change in 2026? AYes. The One Big Beautiful Bill (OBBB) expanded work requirements to include adults aged 55–64 and parents of children over 14. It cuts federal SNAP funding by $186 billion over 10 years and shifts some benefit costs to states starting in 2028. QCan I use my Alaska EBT card at Walmart or Amazon? AYes to both. Walmart accepts Alaska EBT in-store and online at walmart.com. Amazon Fresh also accepts SNAP/EBT online — select it as your payment method at checkout. Delivery fees are not covered, only eligible food items. **Categories:** Taxes and Retirement --- ### [Alabama SNAP Benefits: 2027 Outlook, Current 2026 Amounts Up to $994/Month](https://savingtoinvest.com/alabama-snap-food-stamp-program-latest-updates-and-news/) **Published:** January 30, 2023 **Author:** Andy **Content:** ### Key Takeaways - FY2026 max SNAP benefit: $298/month for 1 person, $994/month for a family of 4 - Benefits load on your Alabama EBT Card 4th–23rd - The OBBB expanded work requirements to adults 55–64 and parents of teens — if you were exempt before, check whether you still are - Alabama uses the federal 130% FPL income limit — the minimum floor, no expansion - Apply or recertify at Alabama DHR or call 334-242-1310 or 2-1-1 Alabama’s SNAP benefits load onto your Alabama EBT Card 4th–23rd. The maximum for a family of four is $994 a month in fiscal year 2026, up from $975 last year. The open question now is what USDA sets for FY2027, expected in late summer. But 2026 is a more complicated year than most for SNAP. The One Big Beautiful Bill (OBBB) made some of the biggest cuts to the program in its history — and some Alabama residents who qualified last year may not qualify now. Here’s what changed, what you can expect to receive, and what to do if you’re denied. Covered in this Article: [Toggle](#) - [2026 SNAP Benefit Amounts in Alabama](#2026_SNAP_Benefit_Amounts_in_Alabama) - [How Much Would a Family of 4 Actually Receive in Alabama?](#How_Much_Would_a_Family_of_4_Actually_Receive_in_Alabama) - [When Does SNAP Deposit to Your Alabama EBT Card?](#When_Does_SNAP_Deposit_to_Your_Alabama_EBT_Card) - [What’s Changed in 2026: OBBB Work Requirements](#Whats_Changed_in_2026_OBBB_Work_Requirements) - [How to Qualify for Alabama SNAP in 2026](#How_to_Qualify_for_Alabama_SNAP_in_2026) - [How to Apply](#How_to_Apply) - [What to Do If Your Alabama SNAP Application Is Denied](#What_to_Do_If_Your_Alabama_SNAP_Application_Is_Denied) - [What to Watch: Potential SNAP Changes Ahead](#What_to_Watch_Potential_SNAP_Changes_Ahead) - [Where Can You Use Your Alabama EBT Card?](#Where_Can_You_Use_Your_Alabama_EBT_Card) - [Other Benefits If You Receive Alabama SNAP](#Other_Benefits_If_You_Receive_Alabama_SNAP) - [Alabama SNAP: How Benefits Have Changed (2023–2026)](#Alabama_SNAP_How_Benefits_Have_Changed_2023%E2%80%932026) ## 2026 SNAP Benefit Amounts in Alabama Alabama uses the standard federal SNAP benefit schedule. Maximum monthly allotments for FY2026 (October 1, 2025 – September 30, 2026): Household SizeMax Monthly BenefitGross Income Limit (130% FPL)Net Income Limit (100% FPL)1 person$298$1,632/mo$1,255/mo2 people$546$2,214/mo$1,703/mo3 people$785$2,798/mo$2,152/mo4 people$994$3,380/mo$2,600/mo5 people$1,183$3,964/mo$3,049/mo6 people$1,421$4,546/mo$3,497/mo7 people$1,571$5,128/mo$3,945/mo8+ people$1,791+—— **Alabama (AL) uses the federal 130% FPL income standard** — the minimum floor, no expansion. A family of four must have gross income at or below **$3,380/month** to qualify. This is one of the stricter limits nationally. Most households receive less than the maximum. Your actual benefit depends on net income after deductions (rent, utilities, child care, medical expenses for elderly or disabled members). ### How Much Would a Family of 4 Actually Receive in Alabama? Here are two realistic examples to show the range: **Scenario A — Lower-income family** A family of 4 with gross monthly income of **$1,500** (one parent working part-time): - Gross income: $1,500 ✓ (within $3,380/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$300 - Net income: $983 - 30% of net income: $295 - **Monthly SNAP benefit: $994 − $295 = $699** **Scenario B — Working family (moderate income)** A family of 4 with gross monthly income of **$2,000**: - Gross income: $2,000 ✓ (within $3,380/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$400 - Net income: $1,383 - 30% of net income: $415 - **Monthly SNAP benefit: $994 − $415 = $579** The 20% earned income deduction rewards working households. Additional deductions for excess shelter costs, child care, or medical expenses (elderly/disabled) can increase your benefit further. ## When Does SNAP Deposit to Your Alabama EBT Card? Alabama (AL) distributes SNAP benefits based on the **last digit of your case number**. Benefits load between the 4th–23rd each month: Case # Last DigitDeposit Date14th26th38th410th512th615th717th819th921st023rd Your case number is on your approval letter or available through [Alabama DHR](https://www.dhr.alabama.gov). Call **334-242-1310 or 2-1-1** if you’re unsure of your deposit date — it stays the same each month once you’re approved. TANF cash benefits (if applicable) follow a separate deposit schedule. ## What’s Changed in 2026: OBBB Work Requirements The OBBB made several significant changes that took effect in late 2025 and early 2026: **Expanded work requirements**: Adults aged **55–64** who are able to work are now subject to SNAP work requirements for the first time. Previously the cutoff was 49. Parents whose youngest child is **over 14** are also now subject to work rules. **20 hours per week or 80 hours per month** — that’s the threshold for Able-Bodied Adults Without Dependents (ABAWDs) aged 18–64. Work, job training, or approved volunteer activity all count. Fail to meet the requirement and benefits are limited to **3 months in any 36-month period**. **State cost-sharing starting in 2028**: States will begin paying a share of benefit costs based on their SNAP payment error rate. This is new territory for all state budgets. **$186 billion in total federal SNAP cuts** over the next decade. If you were receiving SNAP in 2024 and haven’t recertified recently, check your current eligibility — the rules have shifted. ## How to Qualify for Alabama SNAP in 2026 **Income**: Gross income must be at or below 130% FPL (see table above). Net income (after deductions) must be at or below 100% FPL. **Residency**: Must be a Alabama resident. **Citizenship**: U.S. citizens and certain lawfully present immigrants qualify. Undocumented individuals are not eligible for federal SNAP benefits. **Work requirements**: Most able-bodied adults 18–64 must register for work and accept suitable employment. ABAWDs must meet the 80-hour/month work, training, or volunteer threshold. New in 2026: adults 55–64 are now included. ## How to Apply - **Online**: [Alabama DHR](https://www.dhr.alabama.gov) — fastest option, available 24/7 - **In person**: Any local Alabama Department of Human Resources office - **Phone**: 334-242-1310 or 2-1-1 Alabama has up to **30 days** to process your application — or **7 days** if you qualify for expedited SNAP (very low income or resources). Benefits are backdated to your application date. Things can shift quickly. I’ll update this page when anything changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What to Do If Your Alabama SNAP Application Is Denied Denials are common and often appealable. The most frequent reasons are income slightly over the stated limit, missing documentation, and work requirement issues — all of which can be addressed. **Step 1**: Read your denial notice carefully. Alabama is required to explain the specific reason in writing. **Step 2**: Gather documentation that addresses the reason — recent pay stubs, rent receipts, proof of work activities, or a letter from your employer if hours changed. **Step 3**: Request a fair hearing within **90 days** of your denial. You can request one online at [Alabama DHR](https://www.dhr.alabama.gov), in person at your local Alabama Department of Human Resources office, or by calling **334-242-1310 or 2-1-1**. **Step 4**: While your appeal is pending, you can continue receiving benefits if you were previously approved — request continued benefits when you file your hearing request. --- ## What to Watch: Potential SNAP Changes Ahead **State cost-sharing (FY2027–2028)**: Starting in FY2027, Alabama will begin paying a share of SNAP benefit costs — a first for all states. The percentage depends on Alabama’s payment error rate. If cost pressure builds, expect tighter eligibility administration at the state level. **Work requirement enforcement**: Federal guidance on the expanded age 55–64 rules is still evolving. States are implementing these in phases — if you’re in the newly covered age range, check with your caseworker. **FY2027 COLA adjustment**: Benefits update October 1. I’ll post FY2027 amounts here when USDA releases them (typically late summer 2026). Things can shift quickly — [Subscribe or follow us ↗](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates. --- ## Where Can You Use Your Alabama EBT Card? **In stores**: Any USDA-authorized retailer — including Walmart, Publix, Winn-Dixie, Piggly Wiggly, ALDI, Food Giant, and most independent grocery stores. Look for the EBT/SNAP sign at checkout. **Online**: Alabama SNAP recipients can shop online through **Amazon Fresh** and **Walmart Grocery** — select SNAP/EBT as your payment method at checkout. Delivery fees are not covered by SNAP (only the groceries themselves). **Farmers markets**: Many Alabama farmers markets accept EBT. Some participate in the Double Up Food Bucks program, which matches SNAP dollars on locally-grown produce. **What SNAP does NOT cover**: Alcohol, tobacco, vitamins/supplements, hot prepared foods, fast food, pet food, household supplies, or hygiene products. ## Other Benefits If You Receive Alabama SNAP SNAP often unlocks access to other programs: - **Medicaid / CHIP**: Receiving SNAP can streamline Medicaid enrollment for adults and children. Apply through [Alabama DHR](https://www.dhr.alabama.gov). - **LIHEAP**: Low Income Home Energy Assistance helps with utility bills. Contact your local community action agency or call 2-1-1. - **WIC**: Nutrition support for pregnant women, new mothers, and children under 5. Separate application through your state health department. - **Summer EBT (SUN Bucks)**: Extra food benefits for school-age children during summer months. Check with your state for 2026 enrollment. - **Free/reduced school meals**: SNAP households automatically qualify. Register through your child’s school district. For a full overview of federal SNAP amounts and recent cuts, see the [2026 SNAP benefits guide](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). See also: [Alabama unemployment benefit amounts and eligibility rules](https://savingtoinvest.com/alabama-unemployment-benefits/). --- ## Alabama SNAP: How Benefits Have Changed (2023–2026) PeriodMax Benefit (Family of 4)Key DevelopmentFY2023 (Oct 2022 – Sep 2023)$939/monthPandemic Emergency Allotments ended — biggest single drop since the pandemicFY2024 (Oct 2023 – Sep 2024)$973/month~3.7% COLA increase; first full year post-pandemicFY2025 (Oct 2024 – Sep 2025)$975/monthMinimal ~0.2% increase; OBBB signed into lawFY2026 (Oct 2025 – Sep 2026)$994/month~2% increase; expanded work requirements take effect The end of Emergency Allotments in early 2023 was the biggest disruption in recent memory — some households that had received the maximum saw benefits drop to $23/month. FY2026 numbers are all standard formula, no pandemic additions. Frequently Asked Questions QHow much is SNAP in Alabama in 2026? AThe maximum monthly SNAP benefit in Alabama (AL) for FY2026 is $298 for a single person, $546 for 2 people, $785 for 3 people, $994 for a family of 4, and $1,183 for 5 people. Most households receive less than the maximum based on net income after deductions. QWhen does SNAP deposit to my Alabama EBT card? ABenefits load 4th–23rd. Check your approval letter or Alabama DHR for your exact deposit date. QWhat are the income limits for Alabama SNAP in 2026? AAlabama uses a gross income limit of 130% FPL — approximately $1,632/month for a single person or $3,380/month for a family of four. Net income (after deductions) must be at or below 100% FPL. QHow do I apply for SNAP in Alabama? AApply online at https://www.dhr.alabama.gov, in person at a local Alabama Department of Human Resources (DHR) office, or by calling 334-242-1310 or 2-1-1. Processing takes up to 30 days, or 7 days if you qualify for expedited benefits. QWhat can I buy with my Alabama EBT card? ASNAP covers groceries including produce, meat, dairy, bread, cereals, and packaged foods. You can shop in-store at most major grocery chains and online through Amazon Fresh and Walmart Grocery. SNAP does not cover alcohol, tobacco, hot prepared foods, vitamins, or non-food household items. QWhat do I do if my Alabama SNAP application is denied? ARequest a fair hearing within 90 days of your denial notice. Apply online at https://www.dhr.alabama.gov, in person at a local office, or by calling 334-242-1310 or 2-1-1. The agency must explain the specific reason for denial — gather documentation addressing that reason before your hearing. QDid SNAP benefits change in 2026? AYes. The One Big Beautiful Bill (OBBB) expanded work requirements to include adults aged 55–64 and parents of children over 14. It cuts federal SNAP funding by $186 billion over 10 years and shifts some benefit costs to states starting in 2028. QCan I use my Alabama EBT card at Walmart or Amazon? AYes to both. Walmart accepts Alabama EBT in-store and online at walmart.com. Amazon Fresh also accepts SNAP/EBT online — select it as your payment method at checkout. Delivery fees are not covered, only eligible food items. **Categories:** Government Rebates and Payments --- ### [California Unemployment Benefits: 2027 Outlook, Current 2026 Amount Up to $450/Week](https://savingtoinvest.com/california-unemployment-benefits/) **Published:** March 11, 2016 **Author:** Andy **Content:** ### Key Takeaways - California's maximum weekly unemployment benefit is $450 — a cap that hasn't changed since 2005. - You can receive benefits for up to 26 weeks in most cases; extended benefits may be available if state unemployment rises above certain thresholds. - The Employment Development Department (EDD) is the agency that handles all California UI claims. You file online at UI Online (portal.edd.ca.gov). - Your weekly benefit amount is roughly 60–70% of your earnings, calculated using the highest-earning quarter of your base period. - You must certify for benefits every two weeks and actively look for work to keep receiving payments. The maximum weekly unemployment benefit in California is **$450**, and it has been stuck at that level since 2005. If you lost a job paying $60,000 a year, that’s about $1,154 per week — you’d be capped at less than 40% of what you made. It’s a number worth knowing before you count on unemployment to cover your bills. That said, California’s system is still one of the more accessible in the country. Benefits run up to 26 weeks, the state has a straightforward online filing system, and there’s a decent amount of resources if you hit problems with EDD. Here’s what matters most for 2026. Covered in this Article: [Toggle](#) - [2026 California Unemployment Basics (EDD)](#2026_California_Unemployment_Basics_EDD) - [Who Qualifies in 2026](#Who_Qualifies_in_2026) - [How to File a California UI Claim in 2026](#How_to_File_a_California_UI_Claim_in_2026) - [What If EDD Denies Your Claim?](#What_If_EDD_Denies_Your_Claim) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [The $450 Max: Will It Change in 2027?](#The_450_Max_Will_It_Change_in_2027) - [Other California Resources](#Other_California_Resources) ## 2026 California Unemployment Basics (EDD) The agency handling California’s unemployment insurance is the [Employment Development Department, or EDD](https://edd.ca.gov/en/unemployment/). You file at [UI Online](https://portal.edd.ca.gov), and most people get approved or denied within three weeks of filing. **Weekly benefit amount:** California calculates your benefit using the highest-earning quarter of your base period (roughly the first four of the last five completed calendar quarters). The formula is: divide your highest quarter wages by 26. So if your best quarter was $11,700, your weekly benefit would be $450 — the maximum. If you earned $6,000 in your best quarter, you’d get roughly $231/week. The minimum benefit is $40/week. **Benefit duration:** Up to 26 weeks. If California’s unemployment rate rises enough to trigger Extended Benefits (EB), you could get additional weeks — but that’s not the situation in 2026. Right now, 26 weeks is the standard cap. **Waiting week:** California eliminated the one-week waiting period back in 2020. You can claim benefits starting the first week you’re unemployed. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates as California’s unemployment rules evolve.* ## Who Qualifies in 2026 The basic eligibility rules for California UI haven’t changed much. To qualify you need to: - Have lost your job through no fault of your own (layoff, company shutdown, hours cut significantly) - Have earned at least $1,300 in your highest base period quarter, or at least $900 with total base period earnings of 1.25 times your highest quarter - Be physically able to work, available for work, and actively looking If you were fired for misconduct or quit voluntarily without good cause, EDD will likely deny your claim. You can appeal, but it’s an uphill fight without solid documentation. **Gig workers and self-employed:** The regular UI program doesn’t cover independent contractors or self-employed workers. During the pandemic there was a temporary Pandemic Unemployment Assistance (PUA) program that covered these workers — that expired in September 2021 and has not been renewed. ## How to File a California UI Claim in 2026 1. **File online at UI Online** (portal.edd.ca.gov). This is by far the fastest way. Phone filing is an option but wait times can be brutal. 2. **File during your first week of unemployment** — don’t wait. Your effective claim date is when you submit, not when you lost the job. 3. **Have your information ready:** Social Security number, last employer’s name and address, employment dates, and gross earnings for the past 18 months. 4. **After filing:** EDD will send you a DE 1101BVZ form (claimant verification). Complete it. Missing this step delays payment. 5. **Certify every two weeks** via UI Online or the EDD phone system. Answer the questions honestly — they’re checking whether you worked, earned anything, or refused suitable work. EDD typically processes your first payment within about three weeks if there are no issues. Payments go by debit card (Bank of America EDD card) unless you set up direct deposit. ## What If EDD Denies Your Claim? Denials happen — EDD is a large system and errors are common. If you get denied, you have 30 days from the date on the Notice of Determination to appeal. File your appeal at [EDD’s online appeals page](https://www.edd.ca.gov/unemployment/appeals.htm). Don’t give up after a first denial. Many legitimate claims get denied initially and are reversed on appeal, especially if you have documentation showing why you left or were let go. ## Common Issues to Watch Out For **Overpayment notices and waivers.** EDD’s fraud-detection systems have a history of flagging legitimate claims by mistake, so an overpayment notice doesn’t automatically mean you did something wrong. Non-fraud overpayments can sometimes be waived or set up on a repayment plan; if EDD alleges fraud, the stakes are higher and it’s worth getting the details in writing before responding. Either way, don’t ignore the notice — respond by the deadline. **Missing your biweekly certification.** California requires you to certify every two weeks, not weekly like most states — it’s an easy date to lose track of. Missing a certification window can delay or interrupt your payments even if you’re still eligible, so put a recurring reminder on your calendar. **Missing the 30-day appeal window.** If you’re denied, you have 30 days from the date on the Notice of Determination to appeal. Don’t wait to gather every document first — file the appeal at EDD’s online appeals page, then assemble your evidence. ## The $450 Max: Will It Change in 2027? Multiple bills have tried to raise California’s $450 weekly maximum over the years, including SB 1434 in 2024, which proposed raising it to $700. None of them have passed as of mid-2026. California remains an outlier among large states — neighboring Washington state has a max above $1,600/week, and even Texas pays up to $605. I haven’t seen a new bill introduced for the 2027 legislative session yet, but I’ll update this post the moment that changes or if legislation passes to change the benefit cap. Until then, $450 is your ceiling. ## Other California Resources For tax questions related to unemployment — UI benefits are taxable income at the federal level, though California does not tax them at the state level — check the [IRS guidance on unemployment compensation](https://www.irs.gov/taxtopics/tc418), along with my [IRS refund schedule guide](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) and [tax filing dates guide](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) for the key dates. If you’re looking for related benefit information, see our state-by-state [maximum weekly unemployment benefits comparison](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/) to see how California stacks up. For extended benefits or disability, EDD also administers California’s State Disability Insurance (SDI) and Paid Family Leave (PFL) programs — separate from UI but worth knowing about if you’re out due to illness or a family situation. **SNAP (CalFresh)**: If you’re also facing food insecurity, California’s SNAP program — called CalFresh — provides monthly food benefits via EBT card. See my [full California CalFresh guide](https://savingtoinvest.com/california-ca-calfresh-snap-program/) for current amounts, deposit dates, and eligibility. --- Frequently Asked Questions QWhat is the maximum weekly unemployment benefit in California in 2026? A$450 per week. This cap has been in place since 2005 and has not been updated by legislation as of mid-2026. QHow long can I collect unemployment in California? AUp to 26 weeks under the regular program. Extended benefits can add more weeks if the state unemployment rate triggers that provision, but California is not in extended benefits territory in 2026. QAre California unemployment benefits taxable? AYes, at the federal level. You'll receive a 1099-G form and owe federal income tax on the benefits. California does not tax state unemployment insurance benefits at the state level. QCan I work part-time and still collect California unemployment? AYes, but your benefit is reduced. California uses a "partial claim" system — you can earn up to 25% of your weekly benefit before it starts reducing dollar-for-dollar. Report all earnings honestly when you certify. QHow do I contact EDD if I have a problem? AThe EDD phone line is 1-800-300-5616. Expect long wait times. The online UI Online portal (portal.edd.ca.gov) handles most requests without needing to call, including certifying, checking payment status, and submitting appeals. QWhat happens if EDD overpays me? AYou're required to repay it. EDD will send a Notice of Overpayment and can withhold future benefits or tax refunds to recover the amount. If it was an EDD error (not fraud), you can apply for a waiver. **Categories:** Taxes and Retirement --- ### [Arizona Unemployment Benefits: 2027 Outlook, Current 2026 Amount Up to $320/Week for 24 Weeks](https://savingtoinvest.com/arizona-unemployment-benefits/) **Published:** May 20, 2020 **Author:** Andy **Content:** ### Key Takeaways - Arizona's maximum weekly unemployment benefit is $320 in 2026, and benefits last up to 24 weeks — slightly shorter than the 26-week standard in most states. - To qualify, you need to have earned at least $7,000 in wages across your base period with wages in at least two quarters. - Part-time workers and those with reduced hours can collect partial benefits in Arizona — the state allows you to earn wages up to your WBA before your benefits are reduced. - Arizona taxes unemployment benefits at the state level; federal taxes apply as well, and you can elect withholding from your payments. - Unemployed Arizona residents can access AHCCCS (Arizona Medicaid), SNAP, the Arizona Low Income Home Energy Assistance Program (LIHEAP), and free career services through AZ DES. Arizona’s unemployment insurance program, administered by the [Department of Economic Security (DES)](https://des.az.gov/services/employment/unemployment-individual), provides benefits for up to 24 weeks. With a 2026 maximum of $320 per week, Arizona’s benefit cap is lower than most western states, though the program covers a solid range of workers and provides meaningful partial benefits for those still working reduced hours. DES typically announces updated benefit maximums in January; I haven’t seen a specific 2027 figure confirmed yet. Here’s what you need to know for 2026. Covered in this Article: [Toggle](#) - [2026 Benefit Amounts and Duration](#2026_Benefit_Amounts_and_Duration) - [Who Qualifies](#Who_Qualifies) - [Partial Unemployment for Part-Time Workers and Reduced Hours](#Partial_Unemployment_for_Part-Time_Workers_and_Reduced_Hours) - [Tax Implications of Arizona Unemployment Benefits](#Tax_Implications_of_Arizona_Unemployment_Benefits) - [How to File](#How_to_File) - [Other Benefits Available to Unemployed Arizona Workers](#Other_Benefits_Available_to_Unemployed_Arizona_Workers) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## 2026 Benefit Amounts and Duration Arizona’s **maximum weekly benefit is $320** for 2026. The minimum is $197 (Arizona has a relatively high minimum compared to most states). Benefits last up to **24 weeks** — one of the few states that doesn’t offer the standard 26. Your Weekly Benefit Amount is calculated at approximately 1/25th of your wages in your highest base period quarter, subject to the state maximum. The base period is typically the first four of the last five completed calendar quarters before you file. Arizona also allows an alternative base period using your most recently completed four quarters if you don’t qualify under the standard period — helpful for recently laid off workers who don’t have much history in the prior quarters. See how **Arizona UI benefits** compare to other states at our [national unemployment benefits comparison](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/) table and [Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get the latest updates as Arizona’s benefit rules evolve. ## Who Qualifies To receive Arizona unemployment benefits, you must: - Have earned wages during **at least two quarters** of the base period - Have total base period wages of at least **$7,000** - Have earned at least **$1,500** in two of the four base period quarters, OR have total wages in the base period at least 1.5 times the highest quarter wages - Have lost your job through no fault of your own (layoff, reduction in force, position eliminated) - Be physically able to work, available for full-time work, and actively seeking employment Arizona requires one documented work-search activity per week — lower than most states, though DES audits compliance. Workers who were fired for cause or who quit voluntarily are generally ineligible. Recognized good cause for quitting includes documented domestic violence, a medically necessary resignation (with doctor’s documentation), or significant employer-imposed changes to working conditions. ## Partial Unemployment for Part-Time Workers and Reduced Hours Arizona’s partial unemployment formula is notably flexible. The state allows you to earn wages up to the amount equal to your **full Weekly Benefit Amount** before benefits are affected. Once wages exceed your WBA, Arizona reduces your weekly benefit dollar-for-dollar by the excess. For example, if your WBA is $280 and you earn $200 from part-time work, you still receive your full $280 — your earnings are entirely within the disregard. Earn $350 and your benefit is reduced by $70, giving you $210 for that week. This WBA-sized disregard is one of the more generous formulas in the country — in many states, you’d start losing benefits at 20–25% of your WBA. Arizona’s approach allows part-time workers to continue collecting meaningful UI support while earning income in lower-paid part-time roles. All wages earned during each week must be reported when certifying. Arizona cross-matches wage records with unemployment records after each quarter. ## Tax Implications of Arizona Unemployment Benefits Arizona taxes unemployment compensation as ordinary income at the **state level**. Arizona’s income tax for 2026 applies a flat rate — the state transitioned to a 2.5% flat income tax rate as of 2023 (verify the current year rate at azdor.gov). This is one of the lowest state income tax rates on UI in the country. At the **federal level**, UI is ordinary taxable income. You’ll receive Form 1099-G from AZ DES in January — my [IRS refund schedule guide](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) and [tax filing dates guide](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) cover the key dates. You can elect federal withholding at 10% and Arizona state withholding from your weekly payments through the DES online claim system. Given Arizona’s low flat tax rate, the combined withholding might only be 12–13% of each payment. ## How to File File your claim at **azui.com** (AZ DES Unemployment Insurance portal) or call 877-600-2722. You’ll need your Social Security number, work history for the prior 18 months, and bank account information for direct deposit. Arizona also provides a prepaid debit card option. There’s a **one-week waiting period** before benefits begin. After approval, certify weekly through the azui.com portal — typically Sunday through Saturday. Report your job-search activity and wages. Arizona allows certification by phone as well. Appeals of denied claims must be filed within **15 days** of the mailing date of the Notice of Determination. ## Other Benefits Available to Unemployed Arizona Workers **AHCCCS (Arizona’s Medicaid)**: Arizona expanded Medicaid under the ACA. Adults with household income at or below 138% of the federal poverty level (about $20,120 for a single adult in 2026) qualify for free comprehensive health coverage through AHCCCS. Apply at healthearizonaplus.gov. **SNAP (Supplemental Nutrition Assistance Program)**: Arizona’s SNAP program provides monthly food benefits via EBT card — see my [full Arizona SNAP guide](https://savingtoinvest.com/arizona-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) for current amounts and deposit dates. Income eligibility is set at 130% of the federal poverty level for most households. Apply through healthearizonaplus.gov. **LIHEAP (Low Income Home Energy Assistance Program)**: In Arizona, LIHEAP helps low-income households with utility costs — critical given the state’s summer cooling bills. The program is administered through community action agencies. Apply through your county Community Action Program or at des.az.gov. **KidsCare (CHIP for Arizona)**: Children in households earning up to 200% of FPL may qualify for KidsCare health insurance at low or no cost. Apply through healthearizonaplus.gov. **Arizona@Work**: DES’s workforce development service — Arizona@Work — provides free job search assistance, resume help, career counseling, and training funding at local workforce centers statewide. Using Arizona@Work services satisfies the work-search requirement and can connect you with WIOA-funded training grants for career changes. **Rental and Utility Assistance**: Arizona has various county and community organization programs that provide emergency rental and utility assistance for households facing eviction or service shutoff. Contact 211 Arizona (dial 2-1-1 or visit 211arizona.org) for a referral to local resources. ## Looking Ahead: 2027 Outlook Arizona’s UI trust fund has been in good shape, avoiding FUTA credit reductions on employers. DES typically announces updated benefit maximums in January, though I haven’t seen a specific 2027 figure confirmed yet. Arizona’s flat income tax rate on UI has declined from previous years and may decline further — watch for any legislative updates at azdor.gov. One useful program to know about: Arizona’s Trade Readjustment Assistance (TRA/TAA) program provides additional weeks of benefits and retraining funds for workers whose jobs were affected by foreign trade competition, particularly in manufacturing, technology services, and agriculture. For current claim information, benefit amounts, and program updates, go to **azui.com** or **des.az.gov**, or call 877-600-2722. I’ll update this page once the 2027 figures are confirmed. ## Common Issues to Watch Out For **Overpayment notices and waivers.** If DES later determines you were paid more than you should have been — a common trigger is a late employer wage report or an error on a certification — you’ll get an overpayment notice. Non-fraud overpayments can sometimes be waived or set up on a repayment plan; fraud overpayments generally can’t be waived and carry a penalty. If you get one, don’t ignore it — respond by the deadline and ask about your options. **Not documenting your weekly work-search activity.** Even though Arizona’s requirement is just one activity per week, DES audits compliance and can ask you to produce records retroactively. Save the company name, date, and how you applied — a missing record is one of the more common reasons a certification gets questioned after the fact. **Missing the 15-day appeal window.** If you’re denied, appeals must be filed within 15 days of the mailing date of the Notice of Determination. Don’t wait to gather every document first; file the appeal, then assemble your evidence. --- Frequently Asked Questions QWhat is Arizona's maximum weekly unemployment benefit for 2026? AThe maximum is $320 per week, and Arizona benefits last up to 24 weeks (shorter than the 26-week standard in most states). The minimum weekly benefit is $197 — unusually high compared to other states. Your specific WBA is based on 1/25th of your highest base period quarter wages. QDoes Arizona tax unemployment benefits? AYes. Arizona taxes UI as ordinary income at its flat state income tax rate (currently 2.5% — verify the current year rate at azdor.gov). Federal income tax also applies. You can elect withholding from your weekly payments through the AZ DES azui.com portal. QCan I work part-time and still collect Arizona unemployment? AYes, and Arizona's formula is generous. You can earn wages up to the amount of your full Weekly Benefit Amount without any reduction in benefits. Wages above your WBA reduce your benefit dollar-for-dollar. This allows meaningful part-time income while still collecting full UI. QWhat health insurance options are available if I lose my job in Arizona? AArizona's AHCCCS (Medicaid) covers adults earning up to 138% of the federal poverty level at no cost. Apply at healthearizonaplus.gov. If you earn more, shop on Healthcare.gov for ACA plans with premium tax credits. KidsCare covers children at low cost up to 200% FPL. QWhat other programs can I apply for while on Arizona unemployment? AApply at healthearizonaplus.gov for AHCCCS (Medicaid), SNAP food assistance, and KidsCare (for children). Apply for LIHEAP energy assistance through your county Community Action Program or DES. Visit Arizona@Work centers for free career services and training funding. QHow long does it take to receive Arizona unemployment benefits? AMost claims take 3–4 weeks from filing to first payment. There's a one-week waiting period before benefits start. File as soon as possible after losing your job, as the effective date is based on when you file, not when your job ended. **Categories:** Government Rebates and Payments --- ### [Alaska Unemployment Benefits: 2027 Outlook, Current 2026 Amount Up to $370/Week for 26 Weeks](https://savingtoinvest.com/alaska-unemployment-benefits/) **Published:** June 20, 2026 **Author:** Andy **Content:** ### Key Takeaways - Alaska's maximum weekly unemployment benefit is $370 in 2026, with benefits lasting up to 26 weeks — a moderate cap for one of the highest cost-of-living states in the country. - Alaska has no state income tax, so your UI benefits are only taxed at the federal level — you can elect 10% federal withholding through the DOLWD online system. - Partial unemployment is available in Alaska: you can earn wages up to 20% of your Weekly Benefit Amount before benefits start to reduce. - To qualify, you need base period wages of at least $2,500 in two or more quarters, and your total wages must be at least 1.5 times your highest single-quarter wages. - Beyond UI, unemployed Alaskans can access Medicaid, SNAP food assistance, LIHEAP energy help, and free career services through the Alaska Job Centers network. Alaska’s unemployment insurance program — managed by the [Department of Labor and Workforce Development (DOLWD)](https://labor.alaska.gov/unemployment/) — provides up to $370 per week. That 2026 maximum adjusts periodically; I haven’t seen a specific figure confirmed for 2027 yet. Given that Alaska consistently ranks among the most expensive states to live in, the $370 cap provides more limited income replacement than the dollar amount might imply. That said, Alaska’s complete absence of a state income tax means every dollar of UI stays in your pocket — only federal tax applies. See how Alaska compares to all other states at [SavingToInvest’s unemployment benefits comparison](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/). Covered in this Article: [Toggle](#) - [2026 Benefit Amounts and Duration](https://savingtoinvest.com/?p=71722/#2026_Benefit_Amounts_and_Duration) - [Who Qualifies](https://savingtoinvest.com/?p=71722/#Who_Qualifies) - [Partial Unemployment for Part-Time Workers and Reduced Hours](https://savingtoinvest.com/?p=71722/#Partial_Unemployment_for_Part-Time_Workers_and_Reduced_Hours) - [Tax Implications of Alaska Unemployment Benefits](https://savingtoinvest.com/?p=71722/#Tax_Implications_of_Alaska_Unemployment_Benefits) - [How to File](https://savingtoinvest.com/?p=71722/#How_to_File) - [Other Benefits Available to Unemployed Alaska Workers](https://savingtoinvest.com/?p=71722/#Other_Benefits_Available_to_Unemployed_Alaska_Workers) - [Looking Ahead: 2027 Outlook](https://savingtoinvest.com/?p=71722/#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](https://savingtoinvest.com/?p=71722/#Common_Issues_to_Watch_Out_For) ## 2026 Benefit Amounts and Duration Alaska’s **maximum weekly benefit is $370** for 2026. The minimum is $56. Benefits last up to **26 weeks**. Your Weekly Benefit Amount is calculated at 1/23rd of your wages in your highest base period quarter, subject to the state cap. The base period is the first four of the last five completed calendar quarters before filing. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates as Alaska’s unemployment rules evolve.* ## Who Qualifies To receive Alaska UI benefits, you must: - Have earned wages in **at least two quarters** of the base period - Have total base period wages of at least **$2,500** - Have high-quarter wages of at least **$1,300** (or total wages of at least 1.5× your highest quarter wages) - Have lost your job through no fault of your own (layoff, position eliminated, business closure) - Be physically able and available to work, and actively seeking employment each week Alaska requires claimants to register with AlaskaJobs.gov and document weekly job-search activities — typically three work-search contacts per week. Workers fired for misconduct or who quit without good cause are generally ineligible. Alaska recognizes good cause for domestic violence situations, documented medical conditions, or significant employer-imposed changes to job terms. ## Partial Unemployment for Part-Time Workers and Reduced Hours Alaska uses a **20% of WBA earnings disregard**: wages up to 20% of your weekly benefit are ignored before benefits start to reduce. Wages above that threshold reduce your benefit dollar-for-dollar. For example, if your WBA is $300, you can earn up to $60 per week without any reduction. Earn $120 and your benefit drops by $60 (the amount over $60), giving you $240 for that week. Workers whose hours were reduced by their employer can also file for partial benefits as long as they remain available for full-time work and continue their job search. Report all earnings honestly when certifying — DOLWD matches employer wage records. ## Tax Implications of Alaska Unemployment Benefits Alaska has **no state income tax** — there is no individual income tax at all in Alaska. Your unemployment benefits are completely exempt from state income tax. At the **federal level**, UI is taxable as ordinary income. You’ll receive Form 1099-G from DOLWD each January — my [IRS refund schedule guide](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) and [tax filing dates guide](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) cover the key dates. You can elect to have **10% federal income tax withheld** from your weekly payments through the DOLWD online portal (connect.alaska.gov). If you had significant earnings earlier in the year, consider withholding to avoid a tax bill in April. ## How to File File your claim at **connect.alaska.gov** or call 888-252-2557. You’ll need your Social Security number, work history for the past 18 months, and bank account information for direct deposit. Alaska also offers a debit card option. There is a **one-week waiting period** before benefits start. After approval, certify weekly through the connect.alaska.gov portal. Report wages and work-search activities each week. If your claim is denied, you have **30 days** from the mailing date of the determination to appeal. ## Other Benefits Available to Unemployed Alaska Workers **Alaska Medicaid**: Alaska expanded Medicaid under the ACA in 2015. Adults earning up to 138% of the federal poverty level (about $20,120 for a single person in 2026) can enroll in comprehensive Medicaid coverage. Apply through the Division of Public Assistance at mybenefits.alaska.gov. **Denali KidCare (CHIP)**: Children in Alaska households earning up to 175% of the federal poverty level can receive health coverage through the Denali KidCare program. Apply at mybenefits.alaska.gov. **SNAP (Food Assistance)**: Alaska’s SNAP program provides monthly food benefits via EBT card — see my [full Alaska SNAP guide](https://savingtoinvest.com/alaska-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) for current amounts and deposit dates. Income limits are set at 130% of the federal poverty level. Given Alaska’s higher food costs, SNAP benefits can be especially valuable. Apply through the Division of Public Assistance at mybenefits.alaska.gov or your local DPA office. **Alaska Permanent Fund Dividend (PFD)**: If you’ve been an Alaska resident for the full prior calendar year, you may qualify for the annual Permanent Fund Dividend — typically paid each fall. The PFD is taxable federally but not under state law (Alaska has no state income tax). This is separate from UI but worth remembering as an income source. **LIHEAP (Low Income Home Energy Assistance)**: Alaska’s LIHEAP program helps with heating costs — critical in Alaska’s climate. Apply through your regional Community Action Agency or at dhss.alaska.gov. **Alaska Job Centers**: The Alaska Job Center network offers free job search assistance, resume help, and access to training programs funded by the Workforce Innovation and Opportunity Act (WIOA). Some workers may qualify for Trade Adjustment Assistance. ## Looking Ahead: 2027 Outlook Alaska’s UI benefit cap has lagged the state’s actual cost of living for years, making the program’s 50% wage-replacement goal harder to achieve for moderate-income workers, and I haven’t seen a proposal to raise it for 2027. The state’s oil revenue, which funds much of state government, affects the broader fiscal environment for public assistance programs. The Alaska Permanent Fund Dividend amount is announced each year by the Alaska Permanent Fund Corporation — check apfc.org for the 2026 amount if you qualify. For current rates, claim status, and program details, go to **connect.alaska.gov** or call 888-252-2557 — I’ll update this page once the 2027 figure is confirmed. ## Common Issues to Watch Out For **Overpayment notices and waivers.** If DOLWD later determines you were paid more than you should have been — a common trigger is a late employer wage report or an error on a certification — you’ll get an overpayment notice. Non-fraud overpayments can sometimes be waived or set up on a repayment plan; fraud overpayments generally can’t be waived and carry a penalty. If you get one, don’t ignore it — respond by the deadline and ask about your options. **Not documenting your weekly work-search contacts.** DOLWD can ask you to produce records of your job search retroactively. Save the company name, date, and how you applied for every contact as you go — a missing record is one of the more common reasons a certification gets questioned after the fact. **Missing the 30-day appeal window.** If you’re denied, you have 30 days from the mailing date of the determination to appeal. Don’t wait to gather every document first; file the appeal, then assemble your evidence. --- Frequently Asked Questions QWhat is Alaska's maximum weekly unemployment benefit for 2026? AThe maximum is $370 per week, lasting up to 26 weeks. Your WBA is calculated at 1/23rd of your wages in your highest base period quarter, up to the state cap. QDoes Alaska tax unemployment benefits? ANo. Alaska has no state income tax of any kind. Your UI payments are only subject to federal income tax. You can elect 10% federal withholding through connect.alaska.gov to avoid a tax bill later. QHow does partial unemployment work in Alaska? AAlaska disregards wages up to 20% of your Weekly Benefit Amount — that portion doesn't reduce your benefit. Wages above that 20% threshold reduce your payment dollar-for-dollar. Report all earnings when certifying each week. QDoes Alaska have Medicaid for unemployed adults? AYes — Alaska expanded Medicaid in 2015. Adults earning up to 138% of the federal poverty level qualify for comprehensive coverage. Apply at mybenefits.alaska.gov. QWhat is the Alaska Permanent Fund Dividend and can I get it while unemployed? AThe PFD is an annual payment to Alaska residents funded by oil revenues. It's separate from unemployment insurance and is not affected by your UI status. You qualify based on residency, not employment. The amount varies each year — check apfc.org for the 2026 figure. QWhat other assistance is available to unemployed Alaska workers? AApply for SNAP food assistance and Medicaid through mybenefits.alaska.gov. Apply for Denali KidCare (CHIP for children) there as well. Contact your regional Community Action Agency for LIHEAP heating assistance. Visit Alaska Job Centers for free job search help and WIOA training grants. **Categories:** Taxes and Retirement --- ### [Wyoming Unemployment Benefits: 2027 Outlook, Current 2026 Amount Up to $651/Week for 26 Weeks](https://savingtoinvest.com/wyoming-unemployment-benefits/) **Published:** June 20, 2026 **Author:** Andy **Content:** ### Key Takeaways - Wyoming's maximum weekly unemployment benefit is $651 in 2026 — a solid cap, particularly given Wyoming's low cost of living outside the Jackson Hole and resort areas. - Wyoming has no state income tax — your UI benefits are only taxed at the federal level; you can elect 10% federal withholding through the Wyoming Department of Workforce Services portal. - Benefits last up to 26 weeks under normal conditions. - Wyoming's partial UI formula uses a 50% of WBA earnings disregard — one of the most generous in the Mountain West region. - Wyoming has NOT expanded Medicaid under the ACA, leaving a significant healthcare coverage gap for adults who earn too little for marketplace subsidies but too much for traditional Wyoming Medicaid. Healthcare.gov can help explore coverage options. Wyoming’s unemployment insurance program — managed by the [Wyoming Department of Workforce Services (DWS)](https://dws.wyo.gov/dws-division/unemployment-insurance/) — provides up to $651 per week. That 2026 maximum adjusts periodically; I haven’t seen a specific figure confirmed for 2027 yet. Wyoming’s no-income-tax status and very generous 50% earnings disregard make it one of the friendlier UI systems for workers who can pick up part-time income. However, Wyoming’s failure to expand Medicaid leaves a coverage gap worth noting. See how Wyoming compares nationally at [SavingToInvest’s state unemployment benefits guide](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/). Covered in this Article: [Toggle](#) - [2026 Benefit Amounts and Duration](#2026_Benefit_Amounts_and_Duration) - [Who Qualifies](#Who_Qualifies) - [Partial Unemployment for Part-Time Workers and Reduced Hours](#Partial_Unemployment_for_Part-Time_Workers_and_Reduced_Hours) - [Tax Implications of Wyoming Unemployment Benefits](#Tax_Implications_of_Wyoming_Unemployment_Benefits) - [How to File](#How_to_File) - [Other Benefits Available to Unemployed Wyoming Workers](#Other_Benefits_Available_to_Unemployed_Wyoming_Workers) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## 2026 Benefit Amounts and Duration Wyoming’s **maximum weekly benefit is $651** for 2026. The minimum is $34. Benefits last up to **26 weeks**. Your Weekly Benefit Amount is calculated at approximately **4% of your wages in your highest base period quarter**, subject to the state cap. The base period is the first four of the last five completed calendar quarters before filing. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates as Wyoming’s unemployment rules evolve.* ## Who Qualifies To receive Wyoming UI benefits, you must: - Have earned wages in **at least two quarters** of the base period - Have wages in your **highest quarter of at least $3,150** - Have total base period wages of at least **$4,725** (approximately 1.5× the high-quarter minimum) - Have lost your job through no fault of your own (layoff, reduction in force, energy sector downturn, ranch or business closure) - Be physically able and available to work, and actively seeking new employment Wyoming requires claimants to make at least three work-search contacts per week and register with Wyoming’s labor exchange system. Certify weekly through the Wyoming DWS online portal. Workers fired for misconduct or who quit without good cause are generally ineligible. Wyoming recognizes domestic violence, medical conditions, and significant employer-imposed changes as potential good cause. ## Partial Unemployment for Part-Time Workers and Reduced Hours Wyoming’s partial UI formula uses a **50% of WBA earnings disregard** — one of the most generous in the Mountain West. Wages up to 50% of your weekly benefit are ignored before benefits start to reduce. Wages above that threshold are deducted dollar-for-dollar. At the maximum benefit of $651, you can earn up to $280 per week without any reduction. Earn $400: benefit reduced by $120 ($400 − $280), giving you $440 for that week. Wyoming’s generous 50% disregard is particularly valuable in a state where seasonal work in tourism, agriculture, and energy is common. Workers can take on substantial seasonal income while preserving a significant UI benefit. ## Tax Implications of Wyoming Unemployment Benefits Wyoming has **no state income tax**. There is no Wyoming state tax on wages, salaries, or unemployment benefits of any kind. Your UI payments are completely tax-free at the state level. Only **federal income tax** applies. You’ll receive Form 1099-G from Wyoming DWS each January — my [IRS refund schedule guide](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) and [tax filing dates guide](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) cover the key dates. Elect **10% federal withholding** from your weekly payments through the DWS portal to cover your federal obligation. ## How to File File your claim at **wyomingworkforce.org** or call 307-473-3789. You’ll need your Social Security number, work history for the past 18 months, and bank account details for direct deposit. There is a **one-week waiting period** before benefits start. Certify weekly through the Wyoming DWS portal. Report wages and three work-search contacts per week. If denied, you have **15 days** from the mailing date to appeal to the Wyoming Office of Administrative Hearings. ## Other Benefits Available to Unemployed Wyoming Workers **Wyoming Medicaid**: Wyoming has **NOT expanded Medicaid** under the ACA. Traditional Wyoming Medicaid covers children, pregnant women, and very low-income families with dependent children — but childless adults and many non-custodial parents are not eligible regardless of income. Adults earning between 100% and 400% of the federal poverty level (which includes most UI recipients) can purchase subsidized marketplace plans at **Healthcare.gov** — ACA premium tax credits can make these plans affordable. **CHIP (Kid Care CHIP)**: Wyoming’s Kid Care CHIP program covers children in households earning up to 200% of the federal poverty level. This is available regardless of Medicaid expansion. Apply through Wyoming Department of Health (health.wyo.gov). **SNAP (Food Assistance)**: Wyoming’s SNAP program provides monthly food benefits via EBT card — see my [full Wyoming SNAP guide](https://savingtoinvest.com/wyoming-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) for current amounts and deposit dates. Income limits are at 130% of the federal poverty level. Apply at health.wyo.gov or your local DFS office. **LIHEAP (Low Income Energy Assistance)**: Wyoming administers LIHEAP through the Department of Family Services. The program helps with heating costs — critical given Wyoming’s cold winters. Apply through community action programs or the Department of Family Services. **Wyoming Workforce Services One-Stop Centers**: Wyoming’s DWS One-Stop Centers offer free job search assistance, resume help, and access to WIOA training grants. The Wyoming In-Demand Occupations program provides targeted training for high-demand local jobs in energy, healthcare, and trades. ## Looking Ahead: 2027 Outlook Wyoming has consistently resisted Medicaid expansion — workers without coverage should prioritize Healthcare.gov marketplace enrollment using ACA subsidies based on their UI income. Wyoming’s no-income-tax status and generous partial UI disregard are strong positives, and I haven’t seen a proposal to change either for 2027. Monitor wyomingworkforce.org for annual benefit maximum adjustments — I’ll update this page once the 2027 figure is confirmed. For current rates, claim status, and program information, go to **wyomingworkforce.org** or call 307-473-3789. For health insurance options, visit **Healthcare.gov**. ## Common Issues to Watch Out For **Overpayment notices and waivers.** If Wyoming DWS later determines you were paid more than you should have been — a common trigger is a late employer wage report or an error on a certification — you’ll get an overpayment notice. Non-fraud overpayments can sometimes be waived or set up on a repayment plan; fraud overpayments generally can’t be waived and carry a penalty. If you get one, don’t ignore it — respond by the deadline and ask about your options. **Not documenting your three weekly work-search contacts.** Wyoming DWS can ask you to produce records of your job search retroactively. Save the company name, date, and how you applied for every contact as you go — a missing record is one of the more common reasons a certification gets questioned after the fact. **Missing the 15-day appeal window.** If you’re denied, you have 15 days from the mailing date to appeal to the Wyoming Office of Administrative Hearings. Don’t wait to gather every document first; file the appeal, then assemble your evidence. --- Frequently Asked Questions QWhat is Wyoming's maximum weekly unemployment benefit for 2026? AThe maximum is $651 per week, lasting up to 26 weeks. Your WBA is calculated at approximately 4% of your wages in your highest base period quarter, up to the state cap. QDoes Wyoming tax unemployment benefits? ANo — Wyoming has no state income tax of any kind. Only federal income taxes apply. Elect 10% federal withholding through wyomingworkforce.org to cover your federal obligation. QDoes Wyoming have Medicaid for unemployed adults? AWyoming has NOT expanded Medicaid, so childless adults and many non-custodial parents are not Medicaid-eligible. However, with UI income between 100%–400% of the federal poverty level, most unemployed Wyoming workers qualify for substantial ACA premium tax credits on marketplace plans. Visit Healthcare.gov to explore options. QHow does Wyoming's partial unemployment formula work? AWyoming disregards wages up to 50% of your WBA — one of the most generous formulas in the Mountain West. At the maximum of $651, you can earn up to $280/week before any benefit reduction. Wages above that reduce your benefit dollar-for-dollar. This makes Wyoming an excellent state for combining part-time seasonal work with UI. QWhat is Wyoming's work-search requirement? AWyoming requires three work-search contacts per week. Register with Wyoming's labor exchange system and document your contacts. Wyoming DWS One-Stop Center activities count toward your requirement. QWhat other assistance is available to unemployed Wyoming workers? AApply for Kid Care CHIP (children up to 200% FPL) at health.wyo.gov. Apply for SNAP at health.wyo.gov or your local DFS office. Apply for LIHEAP heating assistance through your local community action program or DFS. Visit Healthcare.gov for ACA marketplace coverage since WY has not expanded Medicaid. Visit Wyoming DWS One-Stop Centers for free career services and WIOA training. **Categories:** Taxes and Retirement --- ### [Wisconsin Unemployment Benefits: 2027 Outlook, Current 2026 Amount Up to $370/Week for 26 Weeks](https://savingtoinvest.com/wisconsin-unemployment-benefits/) **Published:** August 1, 2020 **Author:** Andy **Content:** ### Key Takeaways - Wisconsin's maximum weekly unemployment benefit is $370 in 2026, and benefits can last up to 26 weeks. - Part-time workers and those with reduced hours may collect partial benefits — but Wisconsin's earnings disregard is very low at just $30 per week, meaning income beyond $30 reduces your benefit dollar-for-dollar. - Wisconsin taxes unemployment compensation at the state level; combined with federal taxes, planning ahead through withholding from your payments is smart. - You can file and manage your claim through the Wisconsin Department of Workforce Development (DWD) at dwd.wisconsin.gov. - Unemployed Wisconsin residents can access BadgerCare Plus (Medicaid), SNAP, the Wisconsin Home Energy Assistance Program (WHEAP), and job training through Wisconsin Fast Forward and local job centers. Wisconsin’s unemployment insurance program, run by the [Department of Workforce Development (DWD)](https://dwd.wisconsin.gov/ui/), provides benefits for up to 26 weeks. With a 2026 maximum of $370 per week, the benefit amounts are on the lower end for a Midwest state, but the program’s partial unemployment rules and access to complementary state programs can meaningfully extend your income during a job search. DWD typically updates benefit maximums in January; I haven’t seen a specific 2027 figure confirmed yet. Here’s what you need to know for 2026. Covered in this Article: [Toggle](#) - [2026 Benefit Amounts and Duration](#2026_Benefit_Amounts_and_Duration) - [Who Qualifies](#Who_Qualifies) - [Partial Unemployment for Part-Time Workers and Reduced Hours](#Partial_Unemployment_for_Part-Time_Workers_and_Reduced_Hours) - [Tax Implications of Wisconsin Unemployment Benefits](#Tax_Implications_of_Wisconsin_Unemployment_Benefits) - [How to File](#How_to_File) - [Other Benefits Available to Unemployed Wisconsin Workers](#Other_Benefits_Available_to_Unemployed_Wisconsin_Workers) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## 2026 Benefit Amounts and Duration Wisconsin’s **maximum weekly benefit is $370** for 2026. The minimum is $54. Benefits last up to **26 weeks** under standard state UI. Your Weekly Benefit Amount is calculated as 4% of your total wages during the two highest-earning quarters of your base period. The base period is the first four of the last five completed calendar quarters before you file. There is no dependents allowance in Wisconsin’s formula — all claimants are calculated on the same earnings-based formula. See how **Wisconsin UI benefits** compare to other states at our [national unemployment benefits comparison](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/) table and [Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get the latest updates as Wisconsin’s benefit rules evolve. ## Who Qualifies To receive Wisconsin UI, you must: - Have earned wages in at least two quarters of the base period - Have total base period wages of at least **$1,350** — and wages in the highest quarter of at least **$675** - Have total wages in the two highest quarters equal to at least **4 times your WBA** - Have lost work through no fault of your own (layoff, business closure, reduction in force) - Be able to work, available for work, and actively seeking employment each week Wisconsin requires claimants to complete **four job searches per week** and document them. DWD conducts random audits of job-search records, so keeping accurate logs matters. Workers who were fired for substantial misconduct or who quit without good cause are typically ineligible. Good cause in Wisconsin includes documented harassment, unsafe working conditions, required relocation, or a substantial change in job terms without corresponding compensation. ## Partial Unemployment for Part-Time Workers and Reduced Hours Wisconsin’s partial unemployment rules are among the strictest in the Midwest. The state provides only a **$30 weekly earnings disregard** — you can earn up to $30 per week in wages without any effect on your benefit. Earnings above $30 are deducted **dollar-for-dollar** from your weekly payment. For example, if your WBA is $280 and you earn $130 from part-time work, you lose $100 in benefits ($130 − $30 = $100), giving you $180 for that week. At higher earnings levels, your UI payment can quickly drop to zero. This low disregard makes Wisconsin’s partial benefit particularly limited for workers who pick up part-time shifts while job searching. However, workers who take part-time work earning less than their WBA are still better off collecting partial UI than getting nothing. Workers whose hours were significantly reduced by their employer without a complete layoff can also file for partial benefits, as long as they still meet the availability and work-search requirements. All wages must be reported when certifying weekly through the DWD’s online system. Wage matching is done quarterly and underreporting constitutes fraud. ## Tax Implications of Wisconsin Unemployment Benefits Wisconsin taxes unemployment compensation as ordinary income at the **state level**. Wisconsin’s income tax rates are graduated, ranging from 3.5% to 7.65% depending on taxable income. For most UI recipients, the relevant rate will be in the 4.40%–5.30% range. At the **federal level**, UI is ordinary taxable income. You’ll receive Form 1099-G from DWD each January with your total payments for the prior year — my [IRS refund schedule guide](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) and [tax filing dates guide](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) cover the key dates. You can elect federal tax withholding at 10% and/or state tax withholding from your weekly benefit through the DWD’s online portal. If your annual income is relatively low (after accounting for only 26 weeks of UI), federal taxes may be minimal, but Wisconsin’s state tax still applies to every dollar received. Electing at least state withholding is a good idea. ## How to File File your Wisconsin UI claim online at **dwd.wisconsin.gov** or call the DWD TeleClaim line at 414-435-7069 (Milwaukee area) or 608-232-0678 (Madison area). You’ll need your Social Security number, work history for the past 18 months, and bank account details for direct deposit. Wisconsin has a **one-week waiting period** — the first week you’re eligible is unpaid. Certify every week online or by phone (Sunday through Friday) to confirm your continued eligibility, report wages, and document your job search contacts. If your claim is denied, you have **21 days** from the mailing date to appeal to the DWD Labor and Industry Review Commission (LIRC). ## Other Benefits Available to Unemployed Wisconsin Workers **BadgerCare Plus (Medicaid)**: Wisconsin’s Medicaid program, BadgerCare Plus, covers adults with incomes up to 100% of the federal poverty level (about $15,060 for a single person in 2026). Wisconsin did not expand Medicaid to 138% FPL as most other states did under the ACA. If you earn above 100% FPL, you’ll need to shop on the marketplace. Apply at access.wisconsin.gov. **SNAP (FoodShare Wisconsin)**: Wisconsin’s FoodShare program provides monthly food assistance on an EBT card — see my [full Wisconsin SNAP guide](https://savingtoinvest.com/wisconsin-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) for current amounts and deposit dates. Income limits are set at 200% of the federal poverty level for families with children and 100% FPL for single adults in some categories. Apply at access.wisconsin.gov. **Wisconsin Home Energy Assistance Program (WHEAP)**: WHEAP helps income-eligible households pay heating costs. The program typically opens November 1 for the heating season. Applications are processed through county Human Services departments. Find your county contact at dhs.wisconsin.gov. **Wisconsin Fast Forward**: Wisconsin’s targeted job training initiative funds short-term training programs at technical colleges aligned with employer needs. If you’re looking to upskill while on UI, Wisconsin Fast Forward grants can pay for technical training programs without tapping into your own savings. **Wisconsin Job Centers**: Wisconsin’s Job Center network offers free career counseling, job search assistance, labor market data, and access to Workforce Innovation and Opportunity Act (WIOA) training grants. If you were in a mass layoff, your employer may have been required to give you advance notice under the WARN Act — contact your local Job Center immediately if that’s the case. **Wisconsin’s Supplemental Security Income (SSI) Bridge**: Workers with disabilities who lose their jobs may qualify for SSI or SSDI while waiting for a claim determination. These programs run parallel to (not in place of) UI. ## Looking Ahead: 2027 Outlook Wisconsin’s UI trust fund has been stable, and the state has not had significant employer tax surcharges as a result. DWD typically updates benefit maximums in January, though I haven’t seen a specific 2027 figure confirmed yet. There has been ongoing debate in Wisconsin about raising the $30 earnings disregard, which advocacy groups have called outdated and discouraging to part-time work — watch for any legislative changes at dwd.wisconsin.gov. For the most current benefit information, job search requirements, and program updates, go to **dwd.wisconsin.gov** or contact your local Wisconsin Job Center. I’ll update this page once the 2027 figures are confirmed. ## Common Issues to Watch Out For **Overpayment notices and waivers.** If DWD later determines you were paid more than you should have been — a common trigger is a late employer wage report or an error on a certification — you’ll get an overpayment notice. Non-fraud overpayments can sometimes be waived or set up on a repayment plan; fraud overpayments generally can’t be waived and carry a penalty. If you get one, don’t ignore it — respond by the deadline and ask about your options. **Not documenting your four weekly job searches.** DWD conducts random audits of job-search records, so keeping accurate logs matters. Save the company name, date, and how you applied for every contact as you go — a missing record is one of the more common reasons a certification gets questioned after the fact. **Missing the 21-day appeal window.** If you’re denied, you have 21 days from the mailing date to appeal to the DWD Labor and Industry Review Commission (LIRC). Don’t wait to gather every document first; file the appeal, then assemble your evidence. --- Frequently Asked Questions QWhat is Wisconsin's maximum weekly unemployment benefit for 2026? AThe maximum is $370 per week, and benefits last up to 26 weeks. Your specific amount is 4% of your wages in the two highest base period quarters, subject to the state maximum. QDoes Wisconsin tax unemployment benefits? AYes. Wisconsin taxes UI as ordinary income at graduated state rates ranging from 3.5% to 7.65%. Federal income tax also applies. You can elect withholding from your weekly payments through the DWD online portal. QHow does partial unemployment work in Wisconsin? AWisconsin's earnings disregard is only $30 per week — very low compared to most states. Wages above $30 reduce your benefit dollar-for-dollar. So even modest part-time earnings significantly reduce your payment. You still collect more than if you had no UI at all, but the math works out quickly. QCan I get health insurance while on Wisconsin unemployment? AWisconsin's BadgerCare Plus (Medicaid) covers adults up to 100% of the federal poverty level — lower than most states that expanded to 138%. If you earn too much for BadgerCare Plus, shop at Healthcare.gov for ACA marketplace plans with income-based premium tax credits. Losing your job is a qualifying life event allowing immediate enrollment. QWhat job training programs are available to unemployed Wisconsin workers? AWisconsin Fast Forward provides grants for short-term technical training at state technical colleges. WIOA-funded training grants are available through Wisconsin Job Centers. Trade Adjustment Assistance (TAA) is available for workers displaced by foreign trade competition. Contact your local Job Center at dwd.wisconsin.gov for details. QHow many job search contacts does Wisconsin require per week? AWisconsin requires four documented job search actions per week. Keep records of employer names, application methods, and dates — DWD conducts random audits. Participating in Job Center activities can count toward this requirement. **Categories:** Government Rebates and Payments --- ### [West Virginia Unemployment Benefits: 2027 Outlook, Current 2026 Amount Up to $662/Week for 26 Weeks](https://savingtoinvest.com/west-virginia-unemployment-benefits/) **Published:** June 20, 2026 **Author:** Andy **Content:** ### Key Takeaways - West Virginia's maximum weekly unemployment benefit is $662 in 2026 — a moderate cap for a state with one of the lowest costs of living in the country and significant employment concentration in energy and healthcare. - Benefits last up to 26 weeks under normal conditions. - West Virginia taxes unemployment benefits as ordinary state income at graduated rates up to 6.5% for 2026 (though West Virginia has been reducing rates under recent legislation); federal taxes also apply. - West Virginia's partial UI formula uses a 50% of WBA earnings disregard — one of the most generous in the Appalachian region — allowing workers to earn significantly before benefits are reduced. - Beyond UI, unemployed West Virginians can access West Virginia Medicaid (expanded), CHIP, SNAP, LIHEAP energy assistance, and career services through WorkForce West Virginia offices. West Virginia’s unemployment insurance program — managed by [WorkForce West Virginia](https://workforcewv.org/unemployment-insurance-benefits/) — provides up to $662 per week. That 2026 maximum adjusts periodically; I haven’t seen a specific figure confirmed for 2027 yet. West Virginia’s very generous 50% of WBA earnings disregard stands out as one of the best partial UI policies in the region. West Virginia expanded Medicaid in 2014 and has a relatively comprehensive safety net despite its economic challenges. See how West Virginia compares nationally at [SavingToInvest’s state unemployment benefits comparison](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/). Covered in this Article: [Toggle](#) - [2026 Benefit Amounts and Duration](#2026_Benefit_Amounts_and_Duration) - [Who Qualifies](#Who_Qualifies) - [Partial Unemployment for Part-Time Workers and Reduced Hours](#Partial_Unemployment_for_Part-Time_Workers_and_Reduced_Hours) - [Tax Implications of West Virginia Unemployment Benefits](#Tax_Implications_of_West_Virginia_Unemployment_Benefits) - [How to File](#How_to_File) - [Other Benefits Available to Unemployed West Virginia Workers](#Other_Benefits_Available_to_Unemployed_West_Virginia_Workers) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## 2026 Benefit Amounts and Duration West Virginia’s **maximum weekly benefit is $662** for 2026. The minimum is $24. Benefits last up to **26 weeks**. Your Weekly Benefit Amount is calculated at approximately **55% of your average weekly wage** during the base period, subject to the state cap. The base period is the first four of the last five completed calendar quarters before filing. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates as West Virginia’s unemployment rules evolve.* ## Who Qualifies To receive West Virginia UI benefits, you must: - Have earned wages in **at least two quarters** of the base period - Have wages in your **highest quarter of at least $2,200** - Have total base period wages of at least **$2,200** (the same as the high-quarter minimum — a relatively low total threshold) - Have lost your job through no fault of your own (layoff, reduction in force, mine or plant closure) - Be physically able and available to work, and actively seeking new employment West Virginia requires claimants to document work-search activities each week — typically two contacts per week. Register at workforcewv.org. Certify weekly through the WorkForce WV online portal. Workers fired for misconduct or who quit without good cause are generally ineligible. West Virginia recognizes domestic violence, medical conditions, and major employer-imposed changes as potential good cause. ## Partial Unemployment for Part-Time Workers and Reduced Hours West Virginia’s partial UI formula uses a **50% of WBA earnings disregard** — one of the most generous in Appalachia. Wages up to 50% of your weekly benefit are ignored before benefits reduce. Wages above that threshold are deducted dollar-for-dollar. At the maximum benefit of $662, you can earn up to $212 per week without any reduction. Earn $300: benefit reduced by $88 ($300 − $212), giving you $336 for that week. This generous disregard is especially valuable in West Virginia’s economy, where seasonal and part-time work is common in natural resource, tourism, and service industries. ## Tax Implications of West Virginia Unemployment Benefits West Virginia taxes unemployment compensation as ordinary income at the **state level**. West Virginia has graduated income tax rates ranging from 3% to **6.5%** for 2026, though the state has passed legislation to phase in significant rate reductions over coming years (verify current year rates at tax.wv.gov). Most UI recipients will pay in the 4.5%–6.5% range. At the **federal level**, UI is taxable as ordinary income. You’ll receive Form 1099-G from WorkForce WV each January — my [IRS refund schedule guide](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) and [tax filing dates guide](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) cover the key dates. You can elect federal withholding at 10% and West Virginia state withholding from your weekly payments through the WorkForce WV portal. ## How to File File your claim at **workforcewv.org** or call 800-252-JOBS (5627). You’ll need your Social Security number, work history for the past 18 months, and bank account details for direct deposit. There is a **one-week waiting period** before benefits start. Certify weekly through the WorkForce WV portal. Report wages and two work-search contacts per week. If denied, you have **9 days** from the mailing date to appeal to the West Virginia Board of Review — one of the shortest windows in the country, so act quickly. ## Other Benefits Available to Unemployed West Virginia Workers **West Virginia Medicaid**: West Virginia was among the earliest states to expand Medicaid under the ACA, doing so in 2014. Adults earning up to 138% of the federal poverty level (about $20,120 for a single person in 2026) can qualify for comprehensive Medicaid coverage. Apply at wv.gov or your local DHHR office. **CHIP (WV CHIP)**: West Virginia’s CHIP program covers children in households earning up to 300% of the federal poverty level — a generous threshold. Apply through the DHHR at dhhr.wv.gov. **SNAP (Food Assistance)**: West Virginia’s SNAP program provides monthly food benefits via EBT — see my [full West Virginia SNAP guide](https://savingtoinvest.com/west-virginia-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) for current amounts and deposit dates. West Virginia uses broad categorical eligibility with income limits at 130% of the federal poverty level. Apply at dhhr.wv.gov. **LIHEAP (Energy Assistance)**: West Virginia’s Low Income Energy Assistance Program (LIEAP) helps with both heating and cooling costs — important in West Virginia’s climate with hot summers and cold winters. Apply through your local Community Action Agency. **WorkForce WV One-Stop Centers**: WorkForce WV One-Stop Centers offer free job search assistance, resume help, and access to WIOA training programs. Rapid Response services are available for large layoffs in coal, chemical, and manufacturing industries. Trade Adjustment Assistance is available for workers affected by international trade. ## Looking Ahead: 2027 Outlook West Virginia has been implementing significant income tax reductions under Governor Justice’s plan — the state income tax rate has been declining and may continue to fall, though I haven’t seen a specific 2027 rate confirmed. This will reduce the state tax burden on UI over coming years. West Virginia’s energy sector (coal, natural gas, and increasingly wind and solar) continues to drive employment volatility. Monitor workforcewv.org for any benefit maximum updates — I’ll update this page once the 2027 figure is confirmed. ## Common Issues to Watch Out For **Overpayment notices and waivers.** If WorkForce WV later determines you were paid more than you should have been — a common trigger is a late employer wage report or an error on a certification — you’ll get an overpayment notice. Non-fraud overpayments can sometimes be waived or set up on a repayment plan; fraud overpayments generally can’t be waived and carry a penalty. If you get one, don’t ignore it — respond by the deadline and ask about your options. **Not documenting your two weekly work-search contacts.** WorkForce WV can ask you to produce records of your job search retroactively. Save the company name, date, and how you applied for every contact as you go — a missing record is one of the more common reasons a certification gets questioned after the fact. **Missing the 9-day appeal window.** If you’re denied, you have just 9 days from the mailing date to appeal to the West Virginia Board of Review — one of the shortest windows in the country. Don’t wait to gather every document first; file the appeal, then assemble your evidence. --- Frequently Asked Questions QWhat is West Virginia's maximum weekly unemployment benefit for 2026? AThe maximum is $662 per week, lasting up to 26 weeks. Your WBA is based on approximately 55% of your average weekly wage during the base period, up to the state cap. QDoes West Virginia tax unemployment benefits? AYes — West Virginia taxes UI at graduated rates up to 6.5% for 2026, though the state has been phasing in rate reductions under recent legislation. Federal taxes also apply. Elect both state and federal withholding through workforcewv.org. QHow does West Virginia's partial unemployment formula work? AWest Virginia disregards wages up to 50% of your WBA — one of the most generous formulas in the region. At the maximum of $662, you can earn up to $212/week before any benefit reduction. Wages above that reduce your benefit dollar-for-dollar. QDoes West Virginia have Medicaid for unemployed adults? AYes — West Virginia was an early Medicaid expansion state (2014). Adults up to 138% of the federal poverty level can qualify for comprehensive coverage. Apply through DHHR at dhhr.wv.gov or your local DHHR office. QHow long do I have to appeal a denied West Virginia UI claim? AOnly 9 days from the mailing date — one of the shortest appeal windows in the country. Do not delay if you receive a denial. QWhat other assistance is available to unemployed West Virginia workers? AApply for Medicaid, CHIP (up to 300% FPL), and SNAP at dhhr.wv.gov. Apply for LIEAP heating/cooling assistance through your local Community Action Agency. Visit WorkForce WV One-Stop Centers for free career services and WIOA training. Workers from large layoffs may qualify for Trade Adjustment Assistance. **Categories:** Taxes and Retirement --- ### [Washington Unemployment Benefits: 2027 Outlook, Current 2026 Amount Up to $1,208/Week (Highest in the US)](https://savingtoinvest.com/washington-state-unemployment-benefits/) **Published:** June 20, 2026 **Author:** Andy **Content:** ### Key Takeaways - Washington State's maximum weekly unemployment benefit rose to $1,208 for new claims filed on or after July 5, 2026 - still the highest cap of any state in the country, reflecting Washington's very high wages in the tech, aerospace, and Amazon-driven economy. - Washington has no state income tax - your UI payments are only taxed federally; you can elect 10% federal withholding through the Washington ESD portal. - Benefits last up to 26 weeks under normal conditions. - Washington's partial UI formula uses a dollar-for-dollar reduction after an earnings disregard of 25% of WBA per week. - Beyond UI, unemployed Washingtonians can access Apple Health Medicaid (expanded), CHIP, SNAP, LIHEAP, Washington's Paid Family and Medical Leave (PFML) program, and career services through WorkSource Washington. Washington State’s unemployment insurance program — managed by the [Washington State Employment Security Department (ESD)](https://esd.wa.gov/get-financial-help/unemployment-benefits) — now provides up to $1,208 per week for new claims filed on or after July 5, 2026, up $56 from the prior $1,152 maximum. That’s still the highest maximum of any state in the US. ESD resets this cap every July, so a further increase for the 2027 cycle is likely, but I haven’t seen a specific figure confirmed yet. Washington’s no-income-tax status means workers keep the full state-level value of every UI check, and the state pairs that with one of the best safety nets in the country — expanded Medicaid (Apple Health), SNAP, and a robust Paid Family and Medical Leave program. Covered in this Article: [Toggle](#) - [2026 Benefit Amounts and Duration](#2026_Benefit_Amounts_and_Duration) - [Who Qualifies](#Who_Qualifies) - [Partial Unemployment for Part-Time Workers and Reduced Hours](#Partial_Unemployment_for_Part-Time_Workers_and_Reduced_Hours) - [Tax Implications of Washington Unemployment Benefits](#Tax_Implications_of_Washington_Unemployment_Benefits) - [How to File](#How_to_File) - [Claim Stuck in “Pending” or Under Adjudication? What to Do](#Claim_Stuck_in_%E2%80%9CPending%E2%80%9D_or_Under_Adjudication_What_to_Do) - [Other Benefits Available to Unemployed Washington Workers](#Other_Benefits_Available_to_Unemployed_Washington_Workers) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) ## 2026 Benefit Amounts and Duration Washington’s **maximum weekly benefit is $1,208** for new claims opened on or after July 5, 2026 — the highest in the US. The minimum also rose, to **$383** (up $17), on the same date. Benefits last up to **26 weeks**. Claims filed before July 5, 2026 stay on the prior schedule — $1,152 max, $366 min — for the rest of that benefit year. ESD resets both figures annually using the state’s average annual wage, and this year’s jump reflects Washington’s average wage climbing 4.9% in 2025 to $99,810. Your Weekly Benefit Amount is calculated as the greater of $496 or roughly **3.85% of your wages in your highest base period quarter**, subject to the state cap. The base period is the first four of the last five completed calendar quarters before filing. Washington’s exceptionally high cap reflects the state’s concentration of high-wage industries — tech, aerospace, e-commerce, and professional services — and high cost of living, particularly in the Seattle metro area. See how **Washington UI benefits** compare to other states at our [national unemployment benefits comparison](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/) table and [Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get the latest updates as Washington’s benefit rules evolve. ## Who Qualifies To receive Washington UI benefits, you must: - Have worked during **at least two quarters** of the base period - Have total base period wages of at least **$3,000** AND at least 680 hours worked during the base period - Have lost your job through no fault of your own (layoff, reduction in force, tech sector downturn, business closure) - Be physically able and available to work, and actively seeking new employment Washington uses an hours-based eligibility system in addition to wage requirements — workers must have 680 hours in the base period. This can be important for part-time and gig workers. Washington requires claimants to make three work-search activities per week and register at WorkSourceWA.com. Certify weekly through the ESD online portal at esd.wa.gov. Workers fired for misconduct or who quit without good cause are generally ineligible. Washington recognizes domestic violence, medical conditions, and substantial employer-imposed changes as good cause. ## Partial Unemployment for Part-Time Workers and Reduced Hours Washington’s partial UI formula uses a **25% of WBA earnings disregard**: wages up to 25% of your weekly benefit are ignored before benefits start to reduce. Wages above that threshold are deducted dollar-for-dollar. At the new maximum benefit of $1,208, you can earn up to $302 per week without any reduction. Earn $500: benefit reduced by $198 ($500 − $302), giving you $1,010 for that week. Workers whose employer reduced their hours can file for partial UI while remaining available for full-time work. Washington also has a **Standby program** — workers on temporary layoff who are expected to return to their job can collect UI without weekly work-search requirements. ## Tax Implications of Washington Unemployment Benefits Washington State has **no state income tax**. There is no Washington state tax on wages, salaries, capital gains (for most earners), or unemployment benefits. Your UI payments in Washington are completely exempt from state income taxation. Washington does have a **Capital Gains Tax** (7%) on long-term capital gains above $262,000, but this does not apply to UI. Only **federal income tax** applies to your UI. You’ll receive Form 1099-G from ESD each January — my [IRS refund schedule guide](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) and [tax filing dates guide](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) cover the key dates. Elect **10% federal withholding** from your weekly payments through the ESD portal to cover your federal obligation. ## How to File File your claim at **esd.wa.gov** or call 800-318-6022. You’ll need your Social Security number, work history for the past 18 months, and bank account details for direct deposit. There is a **one-week waiting period** before benefits start. Certify weekly through the ESD portal. Report wages and three work-search activities per week. If denied, you have **30 days** from the mailing date to appeal to the Commissioner’s Review Office — one of the longer appeal windows among states. ## Claim Stuck in “Pending” or Under Adjudication? What to Do If your claim status shows “pending” or you’re waiting on an adjudication decision, that’s ESD reviewing the circumstances of your job loss before it can pay benefits for those weeks — most commonly triggered by a separation issue like a layoff dispute, a voluntary quit, or a discharge. This fact-finding review is the single most common source of delay complaints from Washington claimants, and it can take several weeks to resolve. While you wait: keep certifying weekly even if you aren’t being paid yet — missing a certification can create a separate problem once your claim clears. Check your ESD online account for any fact-finding questionnaire request, since an unanswered request is one of the most common reasons an adjudication stalls even longer than it needs to. If it’s been several weeks with no update, call ESD directly at 800-318-6022. Some claimants have also reported success getting a stuck claim looked at by contacting their state legislator’s constituent-services office — not an official ESD appeals channel, but a legitimate route many state agencies respond to for unexplained, extended delays. ## Other Benefits Available to Unemployed Washington Workers **Apple Health (Washington Medicaid)**: Washington expanded Medicaid under the ACA. Adults earning up to 138% of the federal poverty level (about $20,120 for a single person in 2026) can qualify for comprehensive Apple Health coverage. Washington has one of the highest Medicaid enrollment rates in the country. Apply at wahealthplanfinder.org. **Washington CHIP (Apple Health for Kids)**: Children in Washington households earning up to 318% of the federal poverty level can receive Apple Health coverage. Apply at wahealthplanfinder.org. **SNAP (Food Assistance)**: Washington’s SNAP program provides monthly food benefits via EBT — see my [full Washington SNAP guide](https://savingtoinvest.com/washington-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) for current amounts and deposit dates. Washington has broad eligibility with income limits up to 200% of the federal poverty level in many cases. Apply at dshs.wa.gov. **LIHEAP (Low-Income Home Energy Assistance)**: Washington’s LIHEAP is administered through the Department of Commerce. Apply through Community Action Agencies or your local DSHS office. **Washington Paid Family and Medical Leave (PFML)**: Washington’s PFML program provides paid leave for qualifying medical or family events — separate from UI. If you’ve worked and paid into PFML, you may be eligible if your job loss is connected to a qualifying health or family situation. **WorkSource Washington**: WorkSource centers across Washington offer free job search assistance, resume help, skills training, and access to WIOA grants. Given Seattle’s strong tech job market, WorkSource connects workers with industry-specific training programs. ## Looking Ahead: 2027 Outlook Washington’s benefit cap is the highest in the US and is adjusted annually every July based on the state’s average annual wage — expect another increase for claims filed on or after July 2027, though I haven’t seen a specific figure confirmed yet. The state’s no-income-tax status is a longstanding political priority. Watch for ESD annual announcements on benefit adjustments and any changes to PFML or WorkSource programs. For current rates, claim status, and program information, go to **esd.wa.gov** or call 800-318-6022 — I’ll update this page once the 2027 figures are confirmed. --- Frequently Asked Questions QWhat is Washington State's maximum weekly unemployment benefit for 2026? A$1,208 per week for new claims filed on or after July 5, 2026 - the highest UI maximum of any state in the US. Benefits last up to 26 weeks. Your WBA is based on the greater of $496 or roughly 3.85% of your wages in your highest base period quarter, up to the state cap. QWhy did Washington's unemployment benefit increase in July 2026? AESD resets the minimum and maximum weekly benefit every year based on the state's average annual wage. Washington's average wage grew 4.9% in 2025 to $99,810, which pushed the maximum from $1,152 to $1,208 and the minimum from $366 to $383 for claims filed on or after July 5, 2026. QDoes Washington State tax unemployment benefits? ANo - Washington has no state income tax of any kind. Only federal income taxes (at 10% withholding) apply to your UI. Elect federal withholding through esd.wa.gov. QDoes Washington have Medicaid for unemployed adults? AYes - Washington expanded Medicaid (Apple Health) and has one of the highest enrollment rates nationally. Adults up to 138% of the federal poverty level qualify for comprehensive coverage. Washington's CHIP covers children up to 318% FPL - one of the highest thresholds nationally. Apply at wahealthplanfinder.org. QHow does Washington's partial unemployment formula work? AWashington disregards wages up to 25% of your WBA. At the maximum of $1,208, you can earn up to $302/week without any benefit reduction. Wages above that reduce your benefit dollar-for-dollar. Washington's Standby program also lets workers on temporary layoff collect UI without active work-search requirements if their employer expects to recall them. QWhat is Washington's hours-based eligibility requirement? AWashington requires 680 hours worked in the base period in addition to the $3,000 wage minimum. This is important for part-time workers - check your hours carefully when filing. If you're just under 680 hours, check if an alternate base period applies. QWhat other assistance is available to unemployed Washington workers? AApply for Apple Health Medicaid and CHIP at wahealthplanfinder.org. Apply for SNAP (up to 200% FPL) at dshs.wa.gov. Apply for LIHEAP through Community Action Agencies or dshs.wa.gov. Check Paid Family and Medical Leave (PFML) eligibility at paidleave.wa.gov. Visit WorkSource WA centers for free career services and WIOA training. QMy Washington unemployment claim shows ‘pending’ — what does that mean? AIt usually means ESD is still adjudicating an issue with your claim, most often a question about why you left your last job (layoff, quit, or discharge). This fact-finding review can take several weeks. Keep certifying weekly during the wait, respond promptly to any fact-finding questionnaire in your ESD account, and call ESD at 800-318-6022 if there's been no update in several weeks. **Categories:** Taxes and Retirement --- ### [2026-2027 Updates: Virginia (VA) Unemployment Benefits — Up to $478/Week Starting July 5](https://savingtoinvest.com/virginia-unemployment-benefits/) **Published:** September 12, 2020 **Author:** Andy **Content:** ### Key Takeaways - Virginia's maximum weekly unemployment benefit is $430/week for most 2026 claims - and rises to $478/week for new claims filed on or after July 5, 2026, under HB 1320 signed by Governor Abigail Spanberger. - The minimum weekly benefit also increases: from $112 to $160/week effective July 5, 2026. - Benefits last up to 26 weeks. - Virginia taxes unemployment benefits as ordinary state income - federal taxes apply too; plan for withholding when you file. - Virginia expanded Medicaid in 2019, so most unemployed workers can access Virginia Medicaid during a job loss. SNAP, LIHEAP, and CHIP are also available. Virginia’s unemployment insurance program — managed by the [Virginia Employment Commission (VEC)](https://www.vec.virginia.gov/unemployment) — is about to get a meaningful boost. For 2026, the current maximum is $430 per week, but that jumps to **$478 per week for new claims starting July 5, 2026** thanks to legislation passed earlier this year. The minimum benefit also rises from $112 to $160. Covered in this Article: [Toggle](#) - [2026 Benefit Amounts and Duration](#2026_Benefit_Amounts_and_Duration) - [Who Qualifies](#Who_Qualifies) - [Partial Unemployment for Part-Time Workers and Reduced Hours](#Partial_Unemployment_for_Part-Time_Workers_and_Reduced_Hours) - [Tax Implications of Virginia Unemployment Benefits](#Tax_Implications_of_Virginia_Unemployment_Benefits) - [How to File](#How_to_File) - [Other Benefits Available to Unemployed Virginia Workers](#Other_Benefits_Available_to_Unemployed_Virginia_Workers) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## 2026 Benefit Amounts and Duration Virginia’s benefit amounts depend on when your claim becomes effective: Claim Effective DateMaximum Weekly BenefitMinimum Weekly BenefitDurationJanuary 4, 2026 – July 4, 2026$430/week$112/weekUp to 26 weeksJuly 5, 2026 and later$478/week$160/weekUp to 26 weeks The July 5, 2026 increase stems from **HB 1320** (and companion SB 759), signed by Governor Spanberger. This is Virginia’s second benefit increase in 2026 — the first, a $52 increase, took effect January 4 from legislation passed in the 2025 General Assembly session. Your Weekly Benefit Amount is calculated at approximately **1/26th of your wages in your two highest base period quarters combined**, subject to the state cap. To qualify for the maximum, your combined earnings from the two highest quarters of the Base Period must total at least $18,900.01. The base period is the first four of the last five completed calendar quarters before your claim’s effective date. An alternative base period is available if you don’t qualify under the standard one. See how **Virginia UI benefits** compare to other states at our[ national unemployment benefits comparison](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/) table and *[**Subscribe or follow us**](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get the latest updates as Virginia’s benefit rules evolve.* ## Who Qualifies To receive Virginia UI benefits, you must: - Have earned wages in **at least two quarters** of the base period - Have combined wages in your **two highest quarters of at least $18,900.01** to reach the maximum benefit - Have lost your job through no fault of your own (layoff, reduction in force, plant closure) - Be physically able and available to work, and actively seeking new employment Virginia requires claimants to make **two work-search contacts per week** and register with the Virginia Works labor exchange system. Certify weekly through the VEC Customer Self Service (CSS) portal. Workers fired for misconduct or who quit without good cause are generally ineligible. Virginia does recognize domestic violence, significant employer-imposed changes (like a major cut in pay or hours), and medical conditions as good cause for leaving. ## Partial Unemployment for Part-Time Workers and Reduced Hours Virginia allows you to collect partial UI if you’re working part-time or had hours cut — as long as your gross weekly wages are less than your WBA. The earnings disregard works like this: **$100 of weekly earnings is ignored, and the rest is deducted dollar-for-dollar from your benefit.** So: - Earn $100 or less: no reduction (full benefit) - Earn $300, WBA is $430: $430 − ($300 − $100) = $230 in UI benefits - Earn $430 or more (equal to your WBA): $0 in UI for that week You must report **gross earnings** — before taxes — in the week you earned them, not when you’re paid. Virginia has no formal Work Share (short-time compensation) program, which is one gap compared to states like Massachusetts and Oregon. If your employer reduces everyone’s hours, affected workers can file for partial UI individually. ## Tax Implications of Virginia Unemployment Benefits Virginia taxes unemployment compensation as ordinary state income. Virginia has a flat state income tax rate structure — for 2026, the top rate is **5.75%** on income over $17,000. Most UI recipients will owe state tax in the 5.75% range on their benefits. At the **federal level**, UI is taxable as ordinary income. You’ll receive Form 1099-G from the VEC by January 31 of each year — my [IRS refund schedule guide](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) and [tax filing dates guide](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) cover the key dates. You can elect **10% federal withholding** directly from your weekly payments through the VEC’s CSS portal. Virginia state withholding can also be elected. I’d strongly recommend electing both federal and state withholding — otherwise, you may face a tax bill in April that catches you off guard. It’s one of the most common issues I see with UI recipients. ## How to File File your claim online at **uidirect.vec.virginia.gov** or call 866-832-2363 (8am–4:30pm, Monday–Friday). You’ll need your Social Security number, work history for the past 18 months, employer addresses, and bank account details for direct deposit. There is a **one-week waiting period** before benefits start. File for weeks of unemployment weekly through the CSS portal. Report earnings and two job-search contacts each week. If denied, you have **30 days** from the date the decision is issued to file an appeal. You can appeal online through CSS, by mail, by fax, or in person at a Virginia Works office. ## Other Benefits Available to Unemployed Virginia Workers **Virginia Medicaid**: Virginia expanded Medicaid in 2019 under the ACA. Adults earning up to 138% of the federal poverty level qualify for full Medicaid coverage. During a period of unemployment, most adults will meet this income threshold. Apply at coverva.org or call 855-242-8282. **CHIP**: Virginia’s Children’s Health Insurance Program (CHIP) covers children in households earning up to 200% of the federal poverty level. Apply through coverva.org. **SNAP (Food Assistance)**: Virginia’s SNAP program provides monthly food benefits via EBT card — see my [full Virginia SNAP guide](https://savingtoinvest.com/virginia-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) for current amounts and deposit dates. Gross income limit is 130% of the federal poverty level. Apply through the Virginia Department of Social Services at commonhelp.virginia.gov. **LIHEAP (Energy Assistance)**: The Virginia Energy Assistance Program provides LIHEAP funds to help with heating and cooling costs. Apply through your local Department of Social Services at dss.virginia.gov. **Virginia Works**: The Virginia Works network offers free job search assistance, resume help, skills assessments, and access to workforce training through WIOA-funded programs. Find your nearest location at virginiaworks.gov. ## Looking Ahead: 2027 Outlook The July 5 rate increase is meaningful — $478/week is $48 more than the current $430 cap, and the higher $160 minimum gives lower-wage workers a better floor. For context, this is still well below states like Massachusetts ($1,105/wk), Washington ($1,152/wk), and even neighboring Pennsylvania ($605/wk). Virginia has a lot of room to grow. I’ll update this page if the VEC announces any additional changes for late 2026. Check the [VEC benefits information page](https://www.vec.virginia.gov/unemployed/benefits-information) for the most current official figures. ## Common Issues to Watch Out For **Overpayment notices and waivers.** If the VEC later determines you were paid more than you should have been — a common trigger is a late employer wage report or an error on a certification — you’ll get an overpayment notice. Non-fraud overpayments can sometimes be waived or set up on a repayment plan; fraud overpayments generally can’t be waived and carry a penalty. If you get one, don’t ignore it — respond by the deadline and ask about your options. **Not documenting your two weekly work-search contacts.** The VEC can ask you to produce records of your job search retroactively. Save the company name, date, and how you applied for every contact as you go — a missing record is one of the more common reasons a certification gets questioned after the fact. **Missing the 30-day appeal window.** If you’re denied, you have 30 days from the date the decision is issued to file an appeal — one of the longer windows in the country, but still worth acting on right away rather than waiting. You can appeal online through CSS, by mail, by fax, or in person at a Virginia Works office. --- Frequently Asked Questions QWhat is Virginia's maximum weekly unemployment benefit in 2026? AThe maximum is $430/week through July 4, 2026, then rises to $478/week for new claims filed on or after July 5, 2026, under HB 1320. The minimum benefit also increases from $112 to $160/week on July 5. Benefits last up to 26 weeks. QWhen does the $478/week Virginia unemployment rate take effect? AThe new $478/week maximum applies to claims with an effective date of July 5, 2026 or later. Claims filed before July 5 are not eligible for the increased amount and cannot be backdated to get the higher rate. QDoes Virginia tax unemployment benefits? AYes. Virginia taxes unemployment compensation as ordinary income at the state level - the top rate is 5.75% for most recipients in 2026. Federal income tax also applies. You can elect withholding on both at the VEC CSS portal when you certify weekly. QHow does Virginia's partial unemployment formula work? AVirginia deducts $100 of weekly gross earnings from the calculation, then reduces your benefit dollar-for-dollar by any earnings above that $100. So if you earn $200/week and your WBA is $430, your partial UI benefit is $430 u2212 $100 = $330. Report all gross earnings in the week they're earned, not when paid. QDoes Virginia have Medicaid for unemployed adults? AYes. Virginia expanded Medicaid in 2019. Adults earning up to 138% of the federal poverty level qualify for full Virginia Medicaid coverage. Most people who have lost their jobs will meet this income threshold during their unemployment. Apply at coverva.org. QWhat is Virginia's work search requirement for UI? AVirginia requires two work-search contacts per week. Register with the Virginia Works labor exchange and document your contacts. You must report these through the VEC CSS portal each week you certify. QWhat other assistance is available to unemployed Virginia workers? AApply for Virginia Medicaid and CHIP at coverva.org. Apply for SNAP and LIHEAP through commonhelp.virginia.gov or your local Department of Social Services at dss.virginia.gov. Visit a Virginia Works center for free job search help and WIOA training opportunities. **Categories:** Government Rebates and Payments --- ### [Vermont Unemployment Benefits: 2027 Outlook, Current 2026 Amount Up to $757/Week for 26 Weeks](https://savingtoinvest.com/vermont-unemployment-benefits/) **Published:** June 20, 2026 **Author:** Andy **Content:** ### Key Takeaways - Vermont's maximum weekly unemployment benefit is $757 in 2026 — a moderate cap for a high cost-of-living New England state with relatively small labor markets. - Benefits last up to 26 weeks under normal conditions. - Vermont has some of the highest state income tax rates in the country — graduated rates up to 8.75% apply to unemployment benefits, significantly reducing take-home pay from UI. - Vermont's partial UI formula uses an earnings disregard of the greater of $40 or 50% of WBA, one of the more generous formulas in New England. - Vermont has a strong safety net: expanded Medicaid (Dr. Dynasaur CHIP), SNAP, LIHEAP, and Dr. Dynasaur Plus — plus one of the most accessible state benefit enrollment systems in the country. Vermont’s unemployment insurance program — managed by the [Vermont Department of Labor (VDOL)](https://labor.vermont.gov/unemployment-insurance) — provides up to $757 per week. That 2026 maximum adjusts periodically; I haven’t seen a specific figure confirmed for 2027 yet. Vermont has high state income taxes that apply to UI, so recipients should plan for significant state withholding. On the positive side, Vermont’s expanded Medicaid (Green Mountain Care) and strong SNAP program mean unemployed workers have relatively easy access to healthcare and food assistance. See how Vermont compares at [SavingToInvest’s state-by-state unemployment benefits guide](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/). Covered in this Article: [Toggle](#) - [2026 Benefit Amounts and Duration](#2026_Benefit_Amounts_and_Duration) - [Who Qualifies](#Who_Qualifies) - [Partial Unemployment for Part-Time Workers and Reduced Hours](#Partial_Unemployment_for_Part-Time_Workers_and_Reduced_Hours) - [Tax Implications of Vermont Unemployment Benefits](#Tax_Implications_of_Vermont_Unemployment_Benefits) - [How to File](#How_to_File) - [Other Benefits Available to Unemployed Vermont Workers](#Other_Benefits_Available_to_Unemployed_Vermont_Workers) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## 2026 Benefit Amounts and Duration Vermont’s **maximum weekly benefit is $757** for 2026. The minimum is $65. Benefits last up to **26 weeks**. Your Weekly Benefit Amount is calculated at approximately **1/45th of your total base period wages**, subject to the state cap. The base period is the first four of the last five completed calendar quarters before filing. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates as Vermont’s unemployment rules evolve.* ## Who Qualifies To receive Vermont UI benefits, you must: - Have earned wages in **at least two quarters** of the base period - Have wages in your **highest quarter of at least $2,964** - Have total base period wages of at least **$5,928** (approximately 2× the high-quarter minimum) - Have lost your job through no fault of your own (layoff, reduction in force, plant closure) - Be physically able and available to work, and actively seeking new employment Vermont requires claimants to make three work-search contacts per week and register at jobs.vermont.gov. Certify weekly through the Vermont UI online portal. Workers fired for misconduct or who quit without good cause are generally ineligible. Vermont recognizes domestic violence, medical situations, and substantial employer-imposed changes as good cause. ## Partial Unemployment for Part-Time Workers and Reduced Hours Vermont’s partial UI formula uses a disregard of the **greater of $40 or 50% of WBA** — one of the more generous disregards among New England states. Wages above that threshold reduce your benefit dollar-for-dollar. At the maximum benefit of $757, 50% of WBA = $294.50. So you can earn up to $294.50 per week without any reduction — a very substantial buffer that makes part-time work highly compatible with collecting UI in Vermont. Earn $350: benefit reduced by only $55.50 ($350 − $294.50), giving you $533.50 for that week. Workers with reduced hours can file for partial UI while remaining available for full-time work. ## Tax Implications of Vermont Unemployment Benefits Vermont taxes unemployment compensation as ordinary income at the **state level**. Vermont has graduated income tax rates ranging from 3.35% to **8.75%** for 2026 — among the highest state income tax rates in the country. Most UI recipients will pay in the 6.6%–8.75% range depending on total annual income. At the **federal level**, UI is taxable as ordinary income. You’ll receive Form 1099-G from VDOL each January — my [IRS refund schedule guide](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) and [tax filing dates guide](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) cover the key dates. You can elect federal withholding at 10% and Vermont state withholding from your weekly payments through the Vermont UI portal. Given Vermont’s high rates, state withholding is strongly recommended. ## How to File File your claim at **labor.vermont.gov** or call 877-214-3332. You’ll need your Social Security number, work history for the past 18 months, and bank account details for direct deposit. There is a **one-week waiting period** before benefits start. Certify weekly through the Vermont UI portal. Report wages and three job-search contacts per week. If denied, you have **10 days** from the mailing date to appeal to the Vermont Employment Security Board. ## Other Benefits Available to Unemployed Vermont Workers **Vermont Medicaid (Green Mountain Care)**: Vermont expanded Medicaid under the ACA. Adults earning up to 138% of the federal poverty level can qualify for comprehensive Medicaid. Vermont has one of the most inclusive Medicaid programs in the country. Apply at Vermont Health Connect (vermontHealthConnect.gov) or call 1-855-899-9600. **Dr. Dynasaur (CHIP)**: Vermont’s Dr. Dynasaur program covers children and pregnant women in households earning up to 312% of the federal poverty level — one of the most generous CHIP income thresholds nationally. Apply through Vermont Health Connect. **SNAP (Food Assistance)**: Vermont’s SNAP program provides monthly food benefits via EBT — see my [full Vermont SNAP guide](https://savingtoinvest.com/vermont-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) for current amounts and deposit dates. Vermont uses broad categorical eligibility with income limits up to 185% of the federal poverty level. Apply at dcf.vermont.gov. **LIHEAP (Fuel & Weatherization Assistance)**: Vermont’s LIHEAP and weatherization programs help with heating costs — critical given Vermont’s severe winters. Apply through ACORN (community action offices) or dcf.vermont.gov. **Vermont Economic Services Division**: Vermont’s DCF Economic Services Division coordinates benefits across SNAP, Reach Up (cash assistance), 3SquaresVT, and childcare assistance. Apply online at Vermont’s integrated ACCESS portal. ## Looking Ahead: 2027 Outlook Vermont’s high income tax rates are a consistent issue for UI recipients, and I haven’t seen a proposal to lower them for 2027. The generous 50% WBA earnings disregard partially offsets this by making part-time work very compatible with UI. Vermont regularly updates its UI maximum — monitor labor.vermont.gov annually, and I’ll update this page once the 2027 figure is confirmed. ## Common Issues to Watch Out For **Overpayment notices and waivers.** If VDOL later determines you were paid more than you should have been — a common trigger is a late employer wage report or an error on a certification — you’ll get an overpayment notice. Non-fraud overpayments can sometimes be waived or set up on a repayment plan; fraud overpayments generally can’t be waived and carry a penalty. If you get one, don’t ignore it — respond by the deadline and ask about your options. **Not documenting your three weekly work-search contacts.** VDOL can ask you to produce records of your job search retroactively. Save the company name, date, and how you applied for every contact as you go — a missing record is one of the more common reasons a certification gets questioned after the fact. **Missing the 10-day appeal window.** If you’re denied, you have just 10 days from the mailing date to appeal to the Vermont Employment Security Board — one of the shorter windows in the country. Don’t wait to gather every document first; file the appeal, then assemble your evidence. --- Frequently Asked Questions QWhat is Vermont's maximum weekly unemployment benefit for 2026? AThe maximum is $757 per week, lasting up to 26 weeks. Your WBA is calculated at approximately 1/45th of your total base period wages, up to the state cap. QDoes Vermont tax unemployment benefits? AYes, and at high rates — Vermont's graduated state income tax goes up to 8.75%, among the highest in the country. Most UI recipients pay 6.6%–8.75% in state taxes. Federal taxes also apply. Vermont withholding is strongly recommended — elect it through labor.vermont.gov. QHow does Vermont's partial unemployment formula work? AVermont disregards the greater of $40 or 50% of your WBA. At the maximum of $757, that means you can earn up to $294.50/week with no reduction. This is one of the most generous disregards in New England and makes part-time work highly compatible with Vermont UI. QDoes Vermont have Medicaid for unemployed adults? AYes — Vermont expanded Medicaid (Green Mountain Care) and has one of the most inclusive Medicaid programs in the US. Adults up to 138% of the federal poverty level can qualify. Apply at vermontHealthConnect.gov. QWhat does Vermont's Dr. Dynasaur CHIP program cover? ADr. Dynasaur covers children and pregnant women in households earning up to 312% of the federal poverty level — one of the most generous CHIP thresholds nationally. Apply through Vermont Health Connect. QWhat other assistance is available to unemployed Vermont workers? AApply for Medicaid and Dr. Dynasaur (CHIP) at vermontHealthConnect.gov. Apply for SNAP (185% FPL) and other benefits at dcf.vermont.gov. Apply for LIHEAP heating/weatherization through ACORN community offices or dcf.vermont.gov. Vermont's integrated ACCESS portal coordinates multiple benefit applications. **Categories:** Taxes and Retirement --- ### [Utah Unemployment Benefits: 2027 Outlook, Current 2026 Amount Up to $801/Week for 26 Weeks](https://savingtoinvest.com/utah-unemployment-benefits/) **Published:** June 20, 2026 **Author:** Andy **Content:** ### Key Takeaways - Utah's maximum weekly unemployment benefit is $801 in 2026 — a respectable cap for a state with a rapidly growing economy and rising cost of living in the Wasatch Front. - Benefits last up to 26 weeks under normal conditions. - Utah uses a flat state income tax rate of 4.55% on all income, including unemployment benefits, making state tax planning straightforward. - Utah's partial UI formula uses a 30% of WBA earnings disregard, giving workers reasonable flexibility for part-time income while collecting benefits. - Beyond UI, unemployed Utahns can access Medicaid (expanded), CHIP (CHIP for Children), SNAP, LIHEAP energy assistance, and career services through Utah's American Job Centers (Workforce Services). Utah’s unemployment insurance program — managed by the [Utah Department of Workforce Services (DWS)](https://jobs.utah.gov/ui/home) — provides up to $801 per week. That 2026 maximum adjusts periodically; I haven’t seen a specific figure confirmed for 2027 yet. Utah has a flat income tax rate, making state tax calculations simple, and an expanded Medicaid program (called Medicaid Expansion in Utah, effective 2020) that ensures most UI recipients can access health coverage. See how Utah compares nationally at [SavingToInvest’s unemployment benefits by state guide](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/). Covered in this Article: [Toggle](#) - [2026 Benefit Amounts and Duration](#2026_Benefit_Amounts_and_Duration) - [Who Qualifies](#Who_Qualifies) - [Partial Unemployment for Part-Time Workers and Reduced Hours](#Partial_Unemployment_for_Part-Time_Workers_and_Reduced_Hours) - [Tax Implications of Utah Unemployment Benefits](#Tax_Implications_of_Utah_Unemployment_Benefits) - [How to File](#How_to_File) - [Other Benefits Available to Unemployed Utah Workers](#Other_Benefits_Available_to_Unemployed_Utah_Workers) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## 2026 Benefit Amounts and Duration Utah’s **maximum weekly benefit is $801** for 2026. The minimum is $29. Benefits last up to **26 weeks**. Your Weekly Benefit Amount is calculated at approximately **1/26th of your wages in your highest base period quarter**, subject to the state cap. The base period is the first four of the last five completed calendar quarters before filing. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates as Utah’s unemployment rules evolve.* ## Who Qualifies To receive Utah UI benefits, you must: - Have earned wages in **at least two quarters** of the base period - Have wages in your **highest quarter of at least $2,900** - Have total base period wages of at least **1.5× your highest quarter wages** - Have lost your job through no fault of your own (layoff, reduction in force, business closure) - Be physically able and available to work, and actively seeking new employment Utah requires claimants to make at least four work-search activities per week — one of the higher weekly requirements among states. Register at jobs.utah.gov. Certify weekly through the Utah DWS online portal. Workers fired for misconduct or who quit without good cause are generally ineligible. Utah recognizes domestic violence, documented medical conditions, and major employer-imposed changes as good cause. ## Partial Unemployment for Part-Time Workers and Reduced Hours Utah’s partial UI formula uses a **30% of WBA earnings disregard**: wages up to 30% of your weekly benefit are ignored before benefits reduce. Wages above that threshold are deducted dollar-for-dollar. At the maximum benefit of $801, you can earn up to $200.40 per week without any reduction. Earn $300: benefit reduced by $99.60, giving you $568.40 for that week. Workers whose employer reduced their hours can file for partial UI as long as they remain available for full-time work and continue their job search. Utah also offers a **Work Share program** allowing employers to reduce all workers’ hours rather than laying off staff. ## Tax Implications of Utah Unemployment Benefits Utah taxes unemployment compensation as ordinary income at a **flat rate of 4.55%** for 2026 (Utah has a flat income tax — the same rate applies to all income levels). This makes state tax planning simple. At the **federal level**, UI is taxable as ordinary income. You’ll receive Form 1099-G from DWS each January — my [IRS refund schedule guide](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) and [tax filing dates guide](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) cover the key dates. You can elect federal withholding at 10% and Utah state withholding at 4.55% from your weekly payments through the DWS portal. Combined federal and state withholding of about 14.55% is a reasonable planning estimate for most recipients. ## How to File File your claim at **jobs.utah.gov** or call 801-526-4400. You’ll need your Social Security number, work history for the past 18 months, and bank account details for direct deposit. There is a **one-week waiting period** before benefits start. Certify weekly through the DWS portal. Report wages and four job-search activities per week. If denied, you have **10 days** from the mailing date to appeal to the DWS Workforce Appeals Board. ## Other Benefits Available to Unemployed Utah Workers **Utah Medicaid**: Utah expanded Medicaid effective January 1, 2020, following Proposition 3 (2018). Adults earning up to 138% of the federal poverty level (about $20,120 for a single person in 2026) can qualify for full Medicaid coverage. Apply at medicaid.utah.gov or through jobs.utah.gov. **CHIP (Utah Children’s Health Insurance Program)**: Utah’s CHIP covers children in households earning up to 200% of the federal poverty level. Apply at medicaid.utah.gov. **SNAP (Food Assistance)**: Utah’s SNAP program provides monthly food benefits via EBT card — see my [full Utah SNAP guide](https://savingtoinvest.com/utah-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) for current amounts and deposit dates. Income limits are at 130% of the federal poverty level. Apply at jobs.utah.gov or your local DWS office. **LIHEAP (Low Income Home Energy Assistance)**: Utah’s Home Energy Assistance Target (HEAT) program provides LIHEAP funds for heating costs. Apply through Community Action Services or your local DWS office. **American Job Centers (AJCs)**: Utah’s American Job Centers offer free job search assistance, resume help, skills assessments, and access to WIOA training grants. With Utah’s strong job market in tech, healthcare, and construction, AJCs can be a powerful resource. ## Looking Ahead: 2027 Outlook Utah’s economy has been one of the fastest-growing in the country, meaning job opportunities are generally stronger than in many states. The flat income tax at 4.55% is straightforward, and I haven’t seen a proposal to change it for 2027. Monitor DWS for annual benefit maximum updates — I’ll update this page once the 2027 figure is confirmed. ## Common Issues to Watch Out For **Overpayment notices and waivers.** If DWS later determines you were paid more than you should have been — a common trigger is a late employer wage report or an error on a certification — you’ll get an overpayment notice. Non-fraud overpayments can sometimes be waived or set up on a repayment plan; fraud overpayments generally can’t be waived and carry a penalty. If you get one, don’t ignore it — respond by the deadline and ask about your options. **Not documenting your four weekly work-search activities.** Utah’s requirement is among the higher ones nationally, and DWS can ask you to produce records retroactively. Save the company name, date, and how you applied for every contact as you go — a missing record is one of the more common reasons a certification gets questioned after the fact. **Missing the 10-day appeal window.** If you’re denied, you have just 10 days from the mailing date to appeal to the DWS Workforce Appeals Board — one of the shorter windows in the country. Don’t wait to gather every document first; file the appeal, then assemble your evidence. --- Frequently Asked Questions QWhat is Utah's maximum weekly unemployment benefit for 2026? AThe maximum is $801 per week, lasting up to 26 weeks. Your WBA is based on approximately 1/26th of your wages in your highest base period quarter, up to the state cap. QDoes Utah tax unemployment benefits? AYes — Utah has a flat state income tax rate of 4.55%, which applies to all income including UI. Federal taxes also apply. Elect both state (4.55%) and federal (10%) withholding through jobs.utah.gov for a combined ~14.55% withholding rate. QHow does Utah's partial unemployment formula work? AUtah disregards wages up to 30% of your WBA. Wages above that reduce your benefit dollar-for-dollar. At the maximum of $801, you can earn up to $200.40/week before any benefit reduction. Utah also offers Work Share for employers reducing hours. QDoes Utah have Medicaid for unemployed adults? AYes — Utah expanded Medicaid in 2020. Adults up to 138% of the federal poverty level can qualify for full Medicaid coverage. Apply at medicaid.utah.gov. QWhat is Utah's work-search requirement? AUtah requires four work-search activities per week — higher than the typical three in most states. Register at jobs.utah.gov and document your activities. American Job Center activities count toward the requirement. QWhat other assistance is available to unemployed Utah workers? AApply for Medicaid and CHIP at medicaid.utah.gov. Apply for SNAP at jobs.utah.gov. Apply for LIHEAP (HEAT program) through Community Action Services or your local DWS office. Visit American Job Centers for free career services and WIOA training. **Categories:** Taxes and Retirement --- ### [Texas Unemployment Benefits: 2027 Outlook, Current 2026 Amount Up to $605/Week for 26 Weeks](https://savingtoinvest.com/texas-unemployment-benefits/) **Published:** April 2, 2020 **Author:** Andy **Content:** ### Key Takeaways - Texas' maximum weekly unemployment benefit is $605 in 2026, up from $563, following the annual adjustment based on the statewide average weekly wage. - Benefits last up to 26 weeks, but your actual entitlement depends on your base period earnings and the state unemployment rate — you may qualify for fewer weeks. - Texas' partial UI formula is the most generous in the country: you can earn up to 125% of your WBA per week before losing your benefit entirely. - Texas has no state income tax — UI benefits are only subject to federal income tax. - Beyond UI, unemployed Texans can access CHIP (Texas has NOT expanded Medicaid — adults without dependents generally do not qualify), SNAP, LIHEAP energy assistance, and career services through Workforce Solutions offices statewide. Texas’ unemployment insurance program — managed by the [Texas Workforce Commission (TWC)](https://www.twc.texas.gov/programs/unemployment-benefits) — increased its maximum weekly benefit to $605 in 2026, up from $563 in 2025. Texas sets its maximum at the greater of $590 or 47% of the statewide average weekly wage, adjusted each October; the 2027 rate will be announced later in 2026. Texas has no state income tax, so UI benefits are only subject to federal taxes. One important caveat: Texas has not expanded Medicaid, so unemployed Texans without dependents have limited state health coverage options. See how Texas compares at [SavingToInvest’s unemployment benefits by state guide](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/). Covered in this Article: [Toggle](#) - [2026 Benefit Amounts and Duration](#2026_Benefit_Amounts_and_Duration) - [Who Qualifies](#Who_Qualifies) - [Partial Unemployment for Part-Time Workers and Reduced Hours](#Partial_Unemployment_for_Part-Time_Workers_and_Reduced_Hours) - [Tax Implications of Texas Unemployment Benefits](#Tax_Implications_of_Texas_Unemployment_Benefits) - [How to File](#How_to_File) - [Other Benefits Available to Unemployed Texas Workers](#Other_Benefits_Available_to_Unemployed_Texas_Workers) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## 2026 Benefit Amounts and Duration Texas’ **maximum weekly benefit is $605** for 2026. The minimum is $72. Benefits last up to **26 weeks**, but your actual number of benefit weeks depends on your total base period wages and the state’s unemployment rate at the time you file. Your Weekly Benefit Amount is calculated based on your wages in the highest two quarters of your base period, divided by 25. If your two highest quarters totaled $30,000, your WBA would be $30,000 ÷ 25 = $1,200 — but the $605 cap applies, so you’d receive $605/week. Things can change — I’ll update this page when any adjustments are announced. [Subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## Who Qualifies To receive Texas UI benefits, you must: - Have earned wages in covered employment during the base period - Have wages in **at least two of the four base period quarters** - Have earned at least **$2,500 in total** during the base period (or meet an alternate minimum earnings test) - Have lost your job through no fault of your own (layoff, reduction in force, business closure) - Be physically able and available for full-time work - Actively seek work each week — Texas requires **at least three job search activities per week** Register with WorkInTexas.com and certify biweekly through the TWC Tele-Serv line (800-558-8321) or online at twc.texas.gov. Workers fired for misconduct or who quit without good cause are generally ineligible. Texas recognizes good cause for medical reasons, domestic violence, and following a spouse to a new location. ## Partial Unemployment for Part-Time Workers and Reduced Hours Texas has the most generous partial UI formula in the country: you can earn up to **125% of your WBA** per week before your benefit is reduced to zero. The formula: subtract 25% of your WBA from your gross weekly earnings, then deduct the remainder from your full WBA. For example, if your WBA is $500 (25% = $125) and you earn $400: - Amount over threshold: $400 − $125 = $275 - Adjusted WBA: $500 − $275 = $225 You still receive a partial benefit. But if you earned $650 (more than 125% of $500 = $625), your benefit would be $500 − ($650 − $125) = -$25, meaning no benefit for that week. Report all gross earnings accurately when certifying biweekly through TWC. ## Tax Implications of Texas Unemployment Benefits **Texas has no state income tax** — UI benefits are not subject to state income tax. This is one of Texas’ major financial advantages for unemployed workers. At the **federal level**, UI is taxable as ordinary income. You’ll receive Form 1099-G from TWC by January 31 — my [IRS refund schedule guide](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) and [tax filing dates guide](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) cover the key dates. You can elect federal withholding from your weekly payments when certifying. Since there’s no state withholding, just elect your preferred federal withholding rate. ## How to File File your claim at **twc.texas.gov** or call 800-939-6631. You’ll need your Social Security number, complete work history for the past 18 months, and bank account details for direct deposit or a TWC debit card. There is a **one-week waiting period** before benefits start. After approval, certify biweekly through Tele-Serv (800-558-8321) or online — report all earnings and three weekly work-search activities for each week. If your claim is denied, you have **14 days** from the mailing date to file an appeal. ## Other Benefits Available to Unemployed Texas Workers **Medicaid**: Texas has NOT expanded Medicaid. Only very low-income parents, pregnant women, and certain individuals with disabilities typically qualify. Most unemployed Texas adults without dependent children do not qualify for Medicaid. If you have children, apply at HHS.texas.gov or your local Health and Human Services office. **CHIP**: Texas’ Children’s Health Insurance Program provides coverage for children in households up to 200% of the federal poverty level. Apply at HHS.texas.gov. **SNAP (Food Assistance)**: Texas SNAP provides monthly food benefits via Lone Star Card — see my [full Texas SNAP guide](https://savingtoinvest.com/texas-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) for current amounts and deposit dates. Apply at HHS.texas.gov, YourTexasBenefits.com, or your local HHSC office. Net income limits are at 100% of the federal poverty level. **LIHEAP / CEAP (Energy Assistance)**: Texas’ Comprehensive Energy Assistance Program (CEAP) helps with home energy bills. Contact your local community action agency or apply through TDHCA at tdhca.state.tx.us for the nearest LIHEAP provider. **Workforce Solutions Centers**: Texas’ Workforce Solutions office network (operated through local workforce boards) provides free job placement, skills training, resume help, and access to WIOA-funded programs. Find your local office at twc.texas.gov. ## Looking Ahead: 2027 Outlook Texas’ benefit maximum adjusts each October. The 2026 rate ($605) took effect October 1, 2025, and the 2027 rate will be announced later in 2026 — I haven’t seen a specific figure confirmed yet, so watch TWC’s site around that time. Texas also periodically considers Medicaid expansion — if it passed, it would significantly improve health coverage options for unemployed Texans, but I haven’t seen it advance for 2027. I’ll update this page if either changes. ## Common Issues to Watch Out For **Overpayment notices and waivers.** If TWC later determines you were paid more than you should have been — a common trigger is a late employer wage report or an error on a certification — you’ll get an overpayment notice. Non-fraud overpayments can sometimes be waived or set up on a repayment plan; fraud overpayments generally can’t be waived and carry a penalty. If you get one, don’t ignore it — respond by the deadline and ask about your options. **Not documenting your three weekly work-search activities.** TWC can ask you to produce records of your job search retroactively. Save the company name, date, and how you applied for every contact as you go — a missing record is one of the more common reasons a certification gets questioned after the fact. **Missing the 14-day appeal window.** If you’re denied, you have 14 days from the mailing date to file an appeal. Don’t wait to gather every document first — file the appeal, then assemble your evidence. --- Frequently Asked Questions QWhat is Texas' maximum weekly unemployment benefit for 2026? A$605 per week, up from $563 in 2025. Benefits last up to 26 weeks, though your actual entitlement weeks may be fewer depending on your base period earnings and the state unemployment rate. QDoes Texas tax unemployment benefits? ANo. Texas has no state income tax, so UI benefits are only subject to federal income tax. Elect federal withholding from your TWC payments to avoid a year-end tax bill. QHow does partial unemployment work in Texas? ATexas is the most generous in the country for partial UI: you can earn up to 125% of your WBA before your benefit drops to zero. The formula subtracts 25% of your WBA from your gross earnings, and the remainder reduces your benefit. Report all earnings when certifying biweekly. QDoes Texas have Medicaid for unemployed adults? ATexas has NOT expanded Medicaid. Most unemployed adults without dependent children do not qualify for Texas Medicaid. If you have children, apply at HHS.texas.gov. CHIP covers children up to 200% of the federal poverty level. QWhat is Texas' work-search requirement? AThree work-search activities per week. Register at WorkInTexas.com and log your activities there. TWC may verify contacts, so keep accurate records. **Categories:** Government Rebates and Payments **Tags:** 2023, benefits, texas, TWC, unemployment --- ### [Tennessee Unemployment Benefits: 2027 Outlook, Current 2026 Amount Up to $325/Week for 26 Weeks](https://savingtoinvest.com/tennessee-unemployment-benefits/) **Published:** January 16, 2021 **Author:** Andy **Content:** ### Key Takeaways - Tennessee's maximum weekly unemployment benefit is $325 in 2026, and benefits last up to 26 weeks. - Tennessee has no state income tax — the Hall Tax (which only applied to investment income) was fully repealed effective January 1, 2021, so there is no state tax on unemployment benefits. - Part-time workers and those with reduced hours may qualify for partial benefits — Tennessee's formula allows you to earn wages up to 50% of your WBA before benefits are reduced. - Only federal income tax applies to Tennessee UI benefits — you can elect 10% federal withholding from your weekly payments through the TN Department of Labor online portal. - Beyond UI, unemployed Tennesseans can access TennCare (Medicaid, with limitations), CoverKids, SNAP, LIHEAP energy assistance, and free career services through Tennessee's American Job Centers. Tennessee’s unemployment insurance program, administered by the [Tennessee Department of Labor and Workforce Development](https://www.tn.gov/workforce.html), provides benefits for up to 26 weeks. The 2026 maximum of $325 per week is modest — Tennessee’s cap has historically been one of the lower ones in the South, and I haven’t seen a proposal to raise it for 2027. But one notable advantage is Tennessee’s complete absence of a state income tax, meaning every dollar of UI you receive is subject only to federal tax. Here’s the full 2026 guide. Covered in this Article: [Toggle](#) - [2026 Benefit Amounts and Duration](#2026_Benefit_Amounts_and_Duration) - [Who Qualifies](#Who_Qualifies) - [Partial Unemployment for Part-Time Workers and Reduced Hours](#Partial_Unemployment_for_Part-Time_Workers_and_Reduced_Hours) - [Tax Implications of Tennessee Unemployment Benefits](#Tax_Implications_of_Tennessee_Unemployment_Benefits) - [How to File](#How_to_File) - [Other Benefits Available to Unemployed Tennessee Workers](#Other_Benefits_Available_to_Unemployed_Tennessee_Workers) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## 2026 Benefit Amounts and Duration Tennessee’s **maximum weekly benefit is $325** for 2026. The minimum is $30. Benefits last up to **26 weeks**. Your Weekly Benefit Amount is calculated at approximately 1/26th of your wages in your two highest-earning quarters of the base period, subject to the state maximum. The base period is the first four of the last five completed calendar quarters before filing. There’s no dependents allowance in Tennessee’s formula. Benefits are strictly earnings-based. See how **Tennessee UI benefits** compare to other states at our [national unemployment benefits comparison](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/) table and [Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get the latest updates as Tennessee’s benefit rules evolve. ## Who Qualifies To receive Tennessee UI benefits, you must: - Have earned wages of at least **$780.01 in two quarters** of the base period - Have total base period wages of at least **$900.01** more than your highest single quarter wages - Have lost your job through no fault of your own (layoff, reduction in force, business closure, or similar) - Be able and available to work, and be actively seeking new employment Tennessee requires documented work-search activities — typically five job contacts per week. Claimants must register with Jobs4TN.gov, Tennessee’s online labor exchange, as part of the eligibility process. Workers fired for job-related misconduct or who quit without good cause connected to their employment are generally ineligible. Good cause recognized in Tennessee includes domestic abuse situations, medically necessary resignation with documented conditions, and illegal discriminatory conditions. ## Partial Unemployment for Part-Time Workers and Reduced Hours Tennessee’s partial UI formula uses a **50% earnings disregard**: you can earn wages up to 50% of your Weekly Benefit Amount per week without any reduction to your benefits. Earnings above that 50% threshold are deducted dollar-for-dollar from your weekly payment. For example, if your WBA is $260, you can earn up to $130 per week from part-time work and still receive your full benefit. Earn $200 and your benefit is reduced by $70 (the amount over $130), giving you $190 for that week. This 50% disregard is in line with what more generous states provide — though the base WBA is relatively modest, so the actual dollar impact is limited. Workers who had their hours reduced by their employer without a full layoff can also apply for partial benefits, as long as they remain available for and seeking full-time work. All wages must be reported when certifying weekly. Tennessee matches employer wage records with UI claims after each quarter, so accurate reporting is essential. ## Tax Implications of Tennessee Unemployment Benefits Tennessee has **no state income tax**. The Hall Tax — which historically taxed interest and dividend income — was fully repealed effective January 1, 2021. Tennessee no longer imposes any form of individual income tax on wages, benefits, or investment income. This means your unemployment benefits in Tennessee are **completely exempt from state income tax**. The only tax that applies is at the **federal level**, where UI is taxable as ordinary income. You’ll receive Form 1099-G from the Tennessee Department of Labor each January — my [IRS refund schedule guide](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) and [tax filing dates guide](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) cover the key dates. You can elect to have **10% federal income tax withheld** from your weekly benefit payments — do this through the TN Jobs4TN portal when filing or by updating your account afterward. Given Tennessee’s relatively modest benefit amounts, many claimants opt out of withholding if they expect their total income for the year to be below the federal standard deduction, though it’s worth checking with a tax professional if you had significant earnings earlier in the year. ## How to File File your claim at **jobs4tn.gov** or call 844-432-0969. You’ll need your Social Security number, work history for the past 18 months, and bank account details for direct deposit. Tennessee also offers a prepaid debit card option. After filing, there’s a **one-week waiting period** before benefits begin. Weekly certification is done through the Jobs4TN portal — typically Sunday through Friday each week. You must report all earnings and confirm your job-search activities. If your claim is denied, you have **15 days** from the mailing date of the determination to request an appeal with the Tennessee Department of Labor. ## Other Benefits Available to Unemployed Tennessee Workers Tennessee’s safety net has some notable gaps compared to other states — particularly Medicaid — so knowing what IS available matters. **TennCare (Medicaid)**: Tennessee has NOT expanded Medicaid under the ACA as of 2026. TennCare eligibility is limited to specific categories: pregnant women, children, and adults who meet strict income and categorical requirements (such as being a parent of a minor child with income below a set limit). Most unemployed single adults without children will not qualify for TennCare unless they meet one of these categories. If you don’t qualify, check Healthcare.gov for ACA marketplace plans with premium tax credits based on your income. **CoverKids (CHIP)**: If you have children under 19, CoverKids provides low-cost health coverage for kids in households earning up to 250% of the federal poverty level. Apply at tennessee.gov/coverKids. **SNAP (Supplemental Nutrition Assistance Program)**: Tennessee’s SNAP program (administered through the Department of Human Services) provides monthly food benefits to income-eligible households — see my [full Tennessee SNAP guide](https://savingtoinvest.com/tennessee-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) for current amounts and deposit dates. Income limits are at 130% of FPL for most households. Apply at tdhs.tn.gov or your local DHS office. **LIHEAP (Low Income Home Energy Assistance Program)**: Tennessee’s LIHEAP program helps with home heating and cooling costs for income-eligible households. Administered through local community action agencies. Find your agency at tnei.org or contact DHS at tdhs.tn.gov. **Tennessee American Job Centers**: American Job Centers (AJCs) in Tennessee provide free job-search assistance, resume help, interview coaching, and access to training grants through WIOA. Participating in AJC services counts toward your work-search requirement. Workers from mass layoffs may qualify for rapid response services or Trade Adjustment Assistance. **Tennessee Recovery Capital**: For workers interested in entrepreneurship after a layoff, Tennessee provides Small Business Administration resources through local Small Business Development Centers (SBDCs). Some workers who exhaust UI may be eligible for Self-Employment Assistance programs. ## Looking Ahead: 2027 Outlook Tennessee’s relatively low benefit cap and lack of Medicaid expansion mean the safety net is thinner than in most states for unemployed workers. Legislative discussions about Medicaid expansion have occurred periodically, but I haven’t seen a proposal advance toward 2027. Monitor any state-level changes at tn.gov. The Tennessee Department of Labor updates benefit maximums annually, and the Jobs4TN system also periodically adds new features for work-search tracking and employer matching — I’ll update this page once the 2027 maximum is confirmed. ## Common Issues to Watch Out For **Overpayment notices and waivers.** Tennessee matches employer wage records with UI claims after each quarter, so a mismatch can trigger an overpayment notice well after the fact. Non-fraud overpayments can sometimes be waived or set up on a repayment plan; fraud overpayments generally can’t be waived and carry a penalty. If you get one, don’t ignore it — respond by the deadline and ask about your options. **Not documenting your five weekly work-search contacts.** Tennessee’s requirement is among the higher ones nationally, and the state can ask you to produce records retroactively. Save the company name, date, and how you applied for every contact as you go — a missing record is one of the more common reasons a certification gets questioned after the fact. **Missing the 15-day appeal window.** If you’re denied, you have 15 days from the mailing date of the determination to request an appeal with the Tennessee Department of Labor. Don’t wait to gather every document first — file the appeal, then assemble your evidence. --- Frequently Asked Questions QWhat is Tennessee's maximum weekly unemployment benefit for 2026? AThe maximum is $325 per week, and benefits last up to 26 weeks. Your specific amount is calculated based on 1/26th of your wages in your two highest base period quarters. QDoes Tennessee tax unemployment benefits? ANo. Tennessee has no state income tax — the Hall Tax was fully repealed on January 1, 2021. Your UI payments are completely free from state income tax. Federal income tax still applies, and you can elect 10% federal withholding from your payments through jobs4tn.gov. QCan I work part-time and still collect Tennessee unemployment? AYes. Tennessee allows you to earn up to 50% of your Weekly Benefit Amount per week without any benefit reduction. Wages above that threshold reduce your payment dollar-for-dollar. Report all earnings when certifying each week on Jobs4TN. QDoes Tennessee have Medicaid for unemployed adults? ATennessee has NOT expanded Medicaid under the ACA, so most unemployed single adults won't qualify for TennCare. Children may qualify for CoverKids (CHIP) up to 250% FPL. For adults, shop Healthcare.gov for marketplace plans with premium tax credits based on your income — losing your job is a qualifying life event for immediate enrollment. QWhat is the work-search requirement in Tennessee? ATennessee requires five documented job search contacts per week — one of the highest requirements in the country. Register at Jobs4TN.gov and use it to track contacts. American Job Center activities can count toward this requirement. QWhat other assistance is available to unemployed Tennessee workers? AApply for SNAP food assistance and TennCare (if eligible) through tdhs.tn.gov. Apply for CoverKids for children through tennessee.gov/coverkids. Apply for LIHEAP energy assistance through your local community action agency (find at tnei.org). Visit Tennessee American Job Centers for free career services and retraining grants. **Categories:** unemployment **Tags:** 2021, FPUC, PEUC, PUA, Tennessee, TN, unemployment --- ### [South Dakota Unemployment Benefits: 2027 Outlook, Current 2026 Amount Up to $553/Week for 26 Weeks](https://savingtoinvest.com/south-dakota-unemployment-benefits/) **Published:** June 20, 2026 **Author:** Andy **Content:** ### Key Takeaways - South Dakota's maximum weekly unemployment benefit is $553 in 2026 — a moderate cap, but every dollar is tax-free at the state level. - South Dakota has no state income tax of any kind — your UI benefits are taxed only at the federal level; you can elect 10% federal withholding through the SD DLR portal. - Benefits last up to 26 weeks under standard conditions. - South Dakota's partial UI formula uses a dollar-for-dollar reduction after an earnings disregard of 25% of WBA per week. - South Dakota has NOT expanded Medicaid under the ACA as of 2026, meaning childless adults face a significant healthcare coverage gap. Healthcare.gov marketplace options with ACA tax credits may be available. South Dakota’s unemployment insurance program — managed by the [South Dakota Department of Labor and Regulation (DLR)](https://dlr.sd.gov/ra/), which now calls the program Reemployment Assistance — provides up to $553 per week. That 2026 maximum adjusts periodically; I haven’t seen a specific figure confirmed for 2027 yet. The no-income-tax advantage means UI recipients keep more of each check compared to workers in high-tax states. South Dakota’s Medicaid expansion is relatively recent (2023), so if you haven’t checked eligibility, it’s worth doing so. See how South Dakota compares at [SavingToInvest’s national unemployment benefits comparison](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/). Covered in this Article: [Toggle](#) - [2026 Benefit Amounts and Duration](#2026_Benefit_Amounts_and_Duration) - [Who Qualifies](#Who_Qualifies) - [Partial Unemployment for Part-Time Workers and Reduced Hours](#Partial_Unemployment_for_Part-Time_Workers_and_Reduced_Hours) - [Tax Implications of South Dakota Unemployment Benefits](#Tax_Implications_of_South_Dakota_Unemployment_Benefits) - [How to File](#How_to_File) - [Other Benefits Available to Unemployed South Dakota Workers](#Other_Benefits_Available_to_Unemployed_South_Dakota_Workers) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## 2026 Benefit Amounts and Duration South Dakota’s **maximum weekly benefit is $553** for 2026. The minimum is $28. Benefits last up to **26 weeks**. Your Weekly Benefit Amount is calculated at approximately **1/26th of your wages in your highest base period quarter**, subject to the state cap. The base period is the first four of the last five completed calendar quarters before filing. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates as South Dakota’s unemployment rules evolve.* ## Who Qualifies To receive South Dakota UI benefits, you must: - Have earned wages in **at least two quarters** of the base period - Have wages in your **highest quarter of at least $728** (minimum threshold — relatively low) - Have total base period wages of at least **20× your WBA** - Have lost your job through no fault of your own (layoff, reduction in force, business closure) - Be physically able and available to work, and actively seeking new employment South Dakota requires claimants to make a reasonable good-faith effort to find work each week. Register at SDworks.gov. Certify weekly through the SD DLR online portal at laborandregulation.sd.gov. Workers fired for misconduct or who quit without good cause are generally ineligible. South Dakota recognizes domestic violence, medical situations, and significant employer-imposed changes as potential good cause. ## Partial Unemployment for Part-Time Workers and Reduced Hours South Dakota’s partial UI formula uses a **25% of WBA earnings disregard**: wages up to 25% of your weekly benefit are ignored before benefits start to reduce. Wages above that threshold are deducted dollar-for-dollar. At the maximum benefit of $553, you can earn up to $121.75 per week without any reduction. Earn $200: benefit reduced by $78.25, giving you $408.75 for that week. Workers whose employer reduced their hours can file for partial UI while remaining available for full-time work. Report all wages when certifying. ## Tax Implications of South Dakota Unemployment Benefits South Dakota has **no state income tax**. There is no South Dakota state tax on wages, salaries, or unemployment benefits of any kind. Your UI payments in South Dakota are completely exempt from state income taxation. Only **federal income tax** applies. You’ll receive Form 1099-G from DLR each January — my [IRS refund schedule guide](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) and [tax filing dates guide](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) cover the key dates. Elect **10% federal withholding** from your weekly payments through the SD DLR portal to avoid a surprise tax bill. ## How to File File your claim at **laborandregulation.sd.gov** or call 605-626-2452. You’ll need your Social Security number, work history for the past 18 months, and bank account details for direct deposit. There is a **one-week waiting period** before benefits start. Certify weekly through the DLR online portal. Report wages and job-search activities each week. If denied, you have **15 days** from the mailing date to appeal to the South Dakota Department of Labor and Regulation Appeal Section. ## Other Benefits Available to Unemployed South Dakota Workers **South Dakota Medicaid**: South Dakota voters approved Medicaid expansion (Amendment D) in November 2022, and expansion took effect July 1, 2023. Adults earning up to 138% of the federal poverty level (about $20,120 for a single person in 2026) can now qualify for SD Medicaid. This is a recent and significant change. Apply at dss.sd.gov or through your local DSS office. **South Dakota CHIP (Healthy and Well Kids in South Dakota — SD Kids)**: Children in South Dakota households earning up to 200% of the federal poverty level can receive health coverage. Apply at dss.sd.gov. **SNAP (Food Assistance)**: South Dakota’s SNAP program provides monthly food benefits via EBT card — see my [full South Dakota SNAP guide](https://savingtoinvest.com/south-dakota-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) for current amounts and deposit dates. Income limits are at 130% of the federal poverty level. Apply at dss.sd.gov or your local DSS field office. **LIHEAP (Energy Assistance)**: South Dakota’s Energy Assistance Program helps income-eligible households pay heating costs — important given the state’s harsh winters. Apply through your local Community Action Agency. **SD Works Career Centers**: SD Works centers offer free job search assistance, resume help, and access to WIOA training grants. South Dakota’s workforce development programs include training support for in-demand occupations. ## Looking Ahead: 2027 Outlook South Dakota’s Medicaid expansion is still relatively new (2023) — if you haven’t checked eligibility recently, do so now. The state’s no-income-tax status is a longstanding benefit for UI recipients that isn’t going anywhere. I haven’t seen a proposal to change the $553 maximum or 26-week duration for 2027. Watch for DLR annual announcements on benefit maximum adjustments — I’ll update this page once the 2027 figure is confirmed. ## Common Issues to Watch Out For **Overpayment notices and waivers.** If DLR later determines you were paid more than you should have been — a common trigger is a late employer wage report or an error on a certification — you’ll get an overpayment notice. Non-fraud overpayments can sometimes be waived or set up on a repayment plan; fraud overpayments generally can’t be waived and carry a penalty. If you get one, don’t ignore it — respond by the deadline and ask about your options. **Not documenting your job-search activities.** DLR can ask you to produce records of your good-faith work search retroactively. Save the company name, date, and how you applied for every contact as you go — a missing record is one of the more common reasons a certification gets questioned after the fact. **Missing the 15-day appeal window.** If you’re denied, you have 15 days from the mailing date to appeal to the Department of Labor and Regulation Appeal Section. Don’t wait to gather every document first — file the appeal, then assemble your evidence. --- Frequently Asked Questions QWhat is South Dakota's maximum weekly unemployment benefit for 2026? AThe maximum is $553 per week, lasting up to 26 weeks. Your WBA is calculated at approximately 1/26th of your wages in your highest base period quarter, up to the state cap. QDoes South Dakota tax unemployment benefits? ANo — South Dakota has no state income tax of any kind. Only federal income taxes apply to your UI. Elect 10% federal withholding through the SD DLR portal to cover your federal obligation. QDoes South Dakota have Medicaid for unemployed adults? AYes, as of July 2023. South Dakota voters approved Medicaid expansion in November 2022, and the program took effect mid-2023. Adults up to 138% of the federal poverty level now qualify. Apply at dss.sd.gov. This is a relatively recent change — check eligibility if you haven't done so. QHow does partial unemployment work in South Dakota? ASouth Dakota disregards wages up to 25% of your WBA. Wages above that threshold reduce your benefit dollar-for-dollar. At the maximum of $553, you can earn up to $121.75/week before benefits are affected. QWhat energy assistance is available in South Dakota during winter? ASouth Dakota's Energy Assistance Program (LIHEAP) provides funds for heating costs. Apply through your local Community Action Agency — this is particularly important for South Dakota's cold winters. QWhat other assistance is available to unemployed South Dakota workers? AApply for Medicaid and SD Kids (CHIP) at dss.sd.gov. Apply for SNAP at dss.sd.gov as well. Apply for LIHEAP heating assistance through your local Community Action Agency. Visit SD Works Career Centers for free career services and WIOA training grants. **Categories:** Taxes and Retirement --- ### [South Carolina Unemployment Benefits: 2027 Outlook, Current 2026 Amount $350/Week for 20 Weeks](https://savingtoinvest.com/south-carolina-unemployment-benefits/) **Published:** June 20, 2026 **Author:** Andy **Content:** ### Key Takeaways - South Carolina's maximum weekly unemployment benefit is $350 in 2026 (up from $326) - and benefits last only 20 weeks, one of the shortest durations in the country (most states offer 26 weeks). - The combination of a low maximum benefit and short duration means South Carolina has one of the least generous UI systems in the US - total maximum payout is about $7,000 versus $16,900+ in states like Massachusetts. - South Carolina does NOT tax unemployment benefits at the state level - a small but meaningful offset for low-income UI recipients. - South Carolina has NOT expanded Medicaid under the ACA, leaving a significant coverage gap for adults who earn too little for ACA marketplace subsidies but too much for traditional SC Medicaid. Healthcare.gov can help explore coverage options. - Beyond UI, unemployed South Carolinians may access SC SNAP, CHIP (South Carolina Healthy Connections Kids), LIHEAP, and career services through SC Works centers. South Carolina’s unemployment insurance program — managed by the [South Carolina Department of Employment and Workforce (DEW)](https://www.dew.sc.gov/) — provides up to $350 per week, up from $326, for a maximum of 20 weeks. Bills to raise the maximum have been introduced but haven’t passed as of this writing — see the Looking Ahead section below for where those stand heading into 2027. This short duration and below-average cap put South Carolina near the bottom nationally for UI generosity. Workers facing job loss in South Carolina should act quickly to apply and plan ahead for the limited benefit window. Covered in this Article: [Toggle](#) - [2026 Benefit Amounts and Duration](#2026_Benefit_Amounts_and_Duration) - [Who Qualifies](#Who_Qualifies) - [Partial Unemployment for Part-Time Workers and Reduced Hours](#Partial_Unemployment_for_Part-Time_Workers_and_Reduced_Hours) - [Tax Implications of South Carolina Unemployment Benefits](#Tax_Implications_of_South_Carolina_Unemployment_Benefits) - [How to File](#How_to_File) - [Other Benefits Available to Unemployed South Carolina Workers](#Other_Benefits_Available_to_Unemployed_South_Carolina_Workers) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## 2026 Benefit Amounts and Duration South Carolina’s **maximum weekly benefit is $350** for 2026, per DEW’s official rate table. The minimum is $42. Benefits last up to **20 weeks** — one of only a handful of states that cap benefits at fewer than 26 weeks. Your Weekly Benefit Amount is calculated at approximately **1/26th of your wages in your highest base period quarter**, subject to the state cap. The base period is the first four of the last five completed calendar quarters before filing. The 20-week cap means total maximum benefits are now approximately $7,000 (up from $6,520) — plan your job search and budget accordingly. See how **South Carolina UI benefits** compare to other states at our [national unemployment benefits comparison](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/) table and [Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get the latest updates as South Carolina’s benefit rules evolve. ## Who Qualifies To receive South Carolina UI benefits, you must: - Have earned wages in **at least two quarters** of the base period - Have wages in your **highest quarter of at least $1,092** - Have total base period wages of at least **$4,455** (roughly 4× the high-quarter minimum) - Have lost your job through no fault of your own (layoff, reduction in force, plant closure) - Be physically able and available to work, and actively seeking new employment South Carolina requires claimants to make three work-search contacts per week and register at SCworks.org. Certify weekly through the DEW online portal. Workers fired for misconduct or who quit without good cause are generally ineligible. South Carolina recognizes domestic violence, medical situations, and major employer-imposed changes as potential good cause. ## Partial Unemployment for Part-Time Workers and Reduced Hours South Carolina uses an earnings disregard equal to **25% of WBA**: wages up to 25% of your weekly benefit are ignored before benefits start to reduce. Wages above that threshold are deducted dollar-for-dollar. At the maximum benefit of $350, you can earn up to $87.50 per week without any reduction. Earn $150: benefit reduced by $62.50, giving you $287.50 for that week. Given the low maximum and short duration, South Carolina workers should be especially proactive about partial UI — earning modest part-time income while maintaining UI eligibility extends the benefit window. ## Tax Implications of South Carolina Unemployment Benefits South Carolina **does not tax unemployment benefits at the state level** — SC exempts UI from state income taxation. This is one of the few positive aspects of South Carolina’s UI system for recipients. At the **federal level**, UI is taxable as ordinary income regardless of state. You’ll receive Form 1099-G from DEW each January — my [IRS refund schedule guide](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) and [tax filing dates guide](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) cover the key dates. You can elect **10% federal withholding** from your weekly payments through the DEW online portal. ## How to File File your claim at **dew.sc.gov** or call 866-831-1724. You’ll need your Social Security number, work history for the past 18 months, and bank account details for direct deposit. There is a **one-week waiting period** before benefits start. Certify weekly through the DEW portal. Report wages and three job-search contacts per week. If denied, you have **10 days** from the mailing date to appeal to the DEW Appellate Panel. ## Other Benefits Available to Unemployed South Carolina Workers **South Carolina Medicaid (Healthy Connections)**: South Carolina has **NOT expanded Medicaid** under the ACA. Traditional SC Medicaid (Healthy Connections) covers pregnant women, children, and very low-income parents — but childless adults and many non-custodial parents are not eligible regardless of income. Adults earning 100%–400% of the federal poverty level can purchase subsidized marketplace plans at **Healthcare.gov** — with UI income, many workers will qualify for significant premium tax credits. **Healthy Connections Kids (CHIP)**: South Carolina’s CHIP program covers children in households earning up to 210% of the federal poverty level. This is available regardless of Medicaid expansion. Apply through South Carolina DHHS (scdhhs.gov). **SNAP (Food Assistance)**: South Carolina’s SNAP program provides monthly food benefits via EBT card — see my [full South Carolina SNAP guide](https://savingtoinvest.com/south-carolina-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) for current amounts and deposit dates. Income limits are at 130% of the federal poverty level. Apply at dss.sc.gov or your local DSS office. **LIHEAP (Low Income Energy Assistance)**: South Carolina administers LIHEAP through the DSS. The LIHEA program helps with heating and cooling costs. Apply through your local Community Action Agency or DSS office. **SC Works Career Centers**: SC Works centers offer free job search assistance, resume help, labor market information, and access to WIOA training grants. Given the short 20-week UI window in South Carolina, connecting with SC Works early in your claim is especially important. ## Looking Ahead: 2027 Outlook South Carolina has had ongoing political debate about both Medicaid expansion and UI benefit levels. State lawmakers introduced bills in the 2025–2026 session (Bill 274 and Bill 3477) that would raise the maximum weekly benefit further, but as of this writing neither has passed — I haven’t seen either advance toward 2027, but I’ll update this page if that changes. Workers with only 20 weeks of benefits should connect with SC Works early for training assistance regardless. Monitor dew.sc.gov for any legislative changes — for health coverage options, visit **Healthcare.gov**. ## Common Issues to Watch Out For **Overpayment notices and waivers.** If DEW later determines you were paid more than you should have been — a common trigger is a late employer wage report or an error on a certification — you’ll get an overpayment notice. Non-fraud overpayments can sometimes be waived or set up on a repayment plan; fraud overpayments generally can’t be waived and carry a penalty. If you get one, don’t ignore it — respond by the deadline and ask about your options. **Not documenting your three weekly work-search contacts.** DEW can ask you to produce records of your job search retroactively. Save the company name, date, and how you applied for every contact as you go — a missing record is one of the more common reasons a certification gets questioned after the fact. **Missing the 10-day appeal window.** If you’re denied, you have just 10 days from the mailing date to appeal to the DEW Appellate Panel — one of the shorter windows in the country. Don’t wait to gather every document first; file the appeal, then assemble your evidence. --- Frequently Asked Questions QWhat is South Carolina's maximum weekly unemployment benefit for 2026? AThe maximum is $350 per week (up from $326) for up to 20 weeks - one of the shortest UI durations in the country. Your WBA is calculated at approximately 1/26th of your wages in your highest base period quarter. QDoes South Carolina tax unemployment benefits? ANo - South Carolina exempts UI from state income taxation. Only federal income taxes apply. Elect 10% federal withholding through dew.sc.gov. QWhy does South Carolina only offer 20 weeks of benefits? ASouth Carolina is one of a small number of states that caps benefits at 20 weeks rather than the standard 26. This legislative choice significantly reduces the total benefit available - maximum payout is around $7,000. Workers should plan early and connect with SC Works for training assistance. QDoes South Carolina have Medicaid for unemployed adults? ASouth Carolina has NOT expanded Medicaid, so childless adults and many non-custodial parents have no Medicaid eligibility regardless of income. However, if you earn between 100% and 400% of the federal poverty level (which many UI recipients do), you can access subsidized marketplace insurance at Healthcare.gov with substantial premium tax credits. QWhat is CHIP eligibility in South Carolina? AHealthy Connections Kids (CHIP) covers children in households earning up to 210% of the federal poverty level. This is separate from Medicaid expansion and is available regardless. Apply at scdhhs.gov. QWhat other assistance is available to unemployed South Carolina workers? AApply for SNAP and Healthy Connections Kids (CHIP) at dss.sc.gov or scdhhs.gov. Apply for LIHEAP heating/cooling assistance through your local Community Action Agency or DSS office. Visit SC Works centers for free career services. Check Healthcare.gov for ACA marketplace health insurance options since SC has not expanded Medicaid. **Categories:** Taxes and Retirement --- ### [Rhode Island Unemployment Benefits: 2027 Outlook, Current 2026 Amount Up to $931/Week With Dependents](https://savingtoinvest.com/rhode-island-unemployment-benefits/) **Published:** June 20, 2026 **Author:** Andy **Content:** ### Key Takeaways - Rhode Island's maximum weekly unemployment benefit is $745 in 2026 for workers without dependents, rising to $931/week for workers with dependents — one of the few states with a meaningful dependent allowance. - Benefits last up to 26 weeks under normal conditions. - Rhode Island's partial UI formula uses a dollar-for-dollar reduction after an earnings disregard equal to the greater of $15 or 20% of WBA per week. - Rhode Island taxes unemployment benefits as ordinary state income at graduated rates up to 5.99% for 2026; federal taxes also apply. - Beyond UI, unemployed Rhode Islanders can access Medicaid (RI Medicaid — expanded), CHIP (RIte Care), SNAP, LIHEAP, the Temporary Caregiver Insurance (TCI) program, and career services through the Rhode Island Department of Labor and Training. Rhode Island’s unemployment insurance program — managed by the [Rhode Island Department of Labor and Training (DLT)](https://dlt.ri.gov/individuals/unemployment-insurance) — is notable for its dependents allowance: workers with dependents can receive up to $931 per week, significantly more than the base maximum of $745. Both figures are set for 2026; I haven’t seen the 2027 amounts announced yet. Rhode Island also has a Temporary Caregiver Insurance (TCI) program for qualifying family leave needs. See how Rhode Island’s benefits compare nationally at [SavingToInvest’s state unemployment benefits guide](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/). Covered in this Article: [Toggle](#) - [2026 Benefit Amounts and Duration](#2026_Benefit_Amounts_and_Duration) - [Who Qualifies](#Who_Qualifies) - [Partial Unemployment for Part-Time Workers and Reduced Hours](#Partial_Unemployment_for_Part-Time_Workers_and_Reduced_Hours) - [Tax Implications of Rhode Island Unemployment Benefits](#Tax_Implications_of_Rhode_Island_Unemployment_Benefits) - [How to File](#How_to_File) - [Other Benefits Available to Unemployed Rhode Island Workers](#Other_Benefits_Available_to_Unemployed_Rhode_Island_Workers) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## 2026 Benefit Amounts and Duration Rhode Island’s benefit structure: - **Maximum without dependents**: $745/week - **Maximum with dependents**: $931/week (the dependency supplement adds approximately 5% of WBA per dependent, up to the cap) - Benefits last up to **26 weeks** - The minimum weekly benefit is $59 Your Weekly Benefit Amount is calculated at approximately **3.85% of your wages in your highest base period quarter**, subject to the state cap. The base period is the first four of the last five completed calendar quarters before filing. Dependents include children under 18 (or under 23 if in school full-time) and unemployed or disabled spouses. You must list dependents when filing to receive the enhanced benefit. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates as Rhode Island’s unemployment rules evolve.* ## Who Qualifies To receive Rhode Island UI benefits, you must: - Have earned wages in **at least two quarters** of the base period - Have wages in your **highest quarter of at least $3,900** - Have total base period wages of at least $5,200 (approximately 1.5× the high-quarter minimum) - Have lost your job through no fault of your own (layoff, reduction in force, plant closure) - Be physically able and available to work, and actively seeking new employment Rhode Island requires claimants to make three work-search contacts per week and register at EmployRI.org. Certify weekly through the DLT online portal or by phone. Workers fired for misconduct or who quit without good cause are generally ineligible. Rhode Island recognizes domestic violence, medical conditions, and substantial employer-imposed changes as good cause. ## Partial Unemployment for Part-Time Workers and Reduced Hours Rhode Island’s partial UI formula uses an earnings disregard equal to the **greater of $15 or 20% of your WBA**. Wages above that threshold reduce your benefit dollar-for-dollar. At the base maximum of $745, 20% of WBA = $137.60, so you can earn up to $137.60 per week without any reduction. Earn $200: benefit reduced by $62.40, giving you $625.60 for that week. At the dependents maximum of $931, you can earn up to $186.20 per week without any reduction. Workers whose employer reduced their hours can file for partial UI while remaining available for full-time work. Rhode Island also has a **WorkShare program** allowing employers to reduce hours rather than lay off workers, with partial UI for affected employees. ## Tax Implications of Rhode Island Unemployment Benefits Rhode Island taxes unemployment compensation as ordinary income at the **state level**. Rhode Island has graduated income tax rates ranging from 3.75% to **5.99%** for 2026. Most UI recipients will pay in the 4.75%–5.99% range depending on total annual income. At the **federal level**, UI is taxable as ordinary income. You’ll receive Form 1099-G from DLT each January — my [IRS refund schedule guide](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) and [tax filing dates guide](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) cover the key dates. You can elect federal withholding at 10% and Rhode Island state withholding from your weekly payments through the DLT portal. ## How to File File your claim at **dlt.ri.gov** or call 401-415-6772. You’ll need your Social Security number, work history for the past 18 months, information about your dependents (if claiming the supplement), and bank account details for direct deposit. There is a **one-week waiting period** before benefits start. Certify weekly through the DLT online portal. Report earnings and three job-search contacts per week. If denied, you have **15 days** from the mailing date to appeal to the DLT Board of Review. ## Other Benefits Available to Unemployed Rhode Island Workers **Rhode Island Medicaid (HealthSource RI)**: Rhode Island expanded Medicaid under the ACA. Adults earning up to 138% of the federal poverty level qualify for comprehensive Medicaid coverage. Apply at HealthSourceRI.com or Medicaid.ri.gov. **RIte Care (CHIP)**: Rhode Island’s RIte Care program covers children in households earning up to 261% of the federal poverty level (and pregnant women). Apply through Medicaid.ri.gov. **SNAP (Food Assistance)**: Rhode Island’s SNAP program provides monthly food benefits via EBT card — see my [full Rhode Island SNAP guide](https://savingtoinvest.com/rhode-island-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) for current amounts and deposit dates. Rhode Island uses broad categorical eligibility, allowing income up to 185% of the federal poverty level in most cases. Apply at dhs.ri.gov. **LIHEAP (Energy Assistance)**: Rhode Island administers LIHEAP through the Rhode Island Office of Energy Resources. Apply through Community Action Program (CAP) agencies. **Temporary Caregiver Insurance (TCI)**: Rhode Island’s TCI program provides paid leave benefits for workers caring for a seriously ill family member or bonding with a new child. TCI is separate from UI — you cannot collect both simultaneously, but this program is available after UI eligibility ends or for qualifying non-job-loss events. **Rhode Island Works**: Rhode Island’s WorkSource system offers free career services, resume help, and access to WIOA training programs. ## Looking Ahead: 2027 Outlook Rhode Island’s benefit amounts are indexed and adjusted annually. The dependent supplement cap can make Rhode Island one of the more generous states for families — significantly above the unadjusted maximum — and I haven’t seen anything suggesting that structure changes for 2027. Monitor DLT for annual announcements — I’ll update this page once the 2027 figures are confirmed. ## Common Issues to Watch Out For **Overpayment notices and waivers.** If DLT later determines you were paid more than you should have been — a common trigger is a late employer wage report or an error on a certification — you’ll get an overpayment notice. Non-fraud overpayments can sometimes be waived or set up on a repayment plan; fraud overpayments generally can’t be waived and carry a penalty. If you get one, don’t ignore it — respond by the deadline and ask about your options. **Not documenting your three weekly work-search contacts.** DLT can ask you to produce records of your job search retroactively. Save the company name, date, and how you applied for every contact as you go — a missing record is one of the more common reasons a certification gets questioned after the fact. **Missing the 15-day appeal window.** If you’re denied, you have 15 days from the mailing date to appeal to the DLT Board of Review. Don’t wait to gather every document first — file the appeal, then assemble your evidence. --- Frequently Asked Questions QWhat is Rhode Island's maximum weekly unemployment benefit for 2026? ARhode Island has two tiers: $745/week without dependents and $931/week with dependents. This makes Rhode Island one of the more generous states for families. Benefits last up to 26 weeks. List your dependents when filing through dlt.ri.gov. QDoes Rhode Island tax unemployment benefits? AYes. Rhode Island taxes UI as ordinary income at graduated rates up to 5.99%. Federal taxes also apply. Elect state and federal withholding through the DLT portal at dlt.ri.gov. QHow does Rhode Island's dependent supplement work? ARhode Island adds approximately 5% of WBA per dependent (children under 18 or 23 if in school; unemployed/disabled spouse), up to the $931/week cap. List all qualifying dependents when you file your initial claim. QHow does partial unemployment work in Rhode Island? ARhode Island disregards the greater of $15 or 20% of your WBA. Wages above that threshold reduce your benefit dollar-for-dollar. At the base maximum of $745, you can earn up to $137.60/week without any reduction. Rhode Island also has a WorkShare program for employers reducing hours. QDoes Rhode Island have Medicaid for unemployed adults? AYes — Rhode Island expanded Medicaid to cover adults up to 138% of the federal poverty level. Apply at HealthSourceRI.com or Medicaid.ri.gov. Rhode Island uses broad categorical eligibility for SNAP as well (up to 185% FPL). QWhat other assistance is available to unemployed Rhode Island workers? AApply for Medicaid and RIte Care (CHIP) at Medicaid.ri.gov. Apply for SNAP (185% FPL) at dhs.ri.gov. Apply for LIHEAP energy assistance through CAP agencies. Check Temporary Caregiver Insurance (TCI) eligibility at dlt.ri.gov for family leave-related needs. **Categories:** Taxes and Retirement --- ### [Pennsylvania Unemployment Benefits: 2027 Outlook, Current 2026 Amount Up to $605/Week for 26 Weeks](https://savingtoinvest.com/pennsylvania-unemployment-benefits/) **Published:** May 12, 2020 **Author:** Andy **Content:** ### Key Takeaways - Pennsylvania's maximum weekly unemployment compensation benefit is $605 in 2026, up from $561, following the annual January adjustment tied to the statewide average weekly wage. - Benefits last up to 26 weeks under standard conditions. - Pennsylvania's partial UC formula uses a 40% earnings disregard — you can earn up to 40% of your WBA per week before any benefit reduction. - Pennsylvania does not tax unemployment benefits at the state level; federal taxes still apply. - Beyond UI, unemployed Pennsylvanians can access Medicaid (expanded), CHIP, SNAP, LIHEAP energy assistance, and career services through PA CareerLink centers statewide. Pennsylvania’s unemployment compensation program — managed by the [PA Department of Labor & Industry (L&I)](https://www.pa.gov/agencies/dli/programs-services/unemployment.html) — increased its maximum weekly benefit to $605 for 2026, effective January 1, from $561 in 2025. Pennsylvania sets its maximum at approximately 66⅔% of the statewide average weekly wage, adjusted each January; the 2027 maximum hasn’t been announced yet. Importantly, Pennsylvania is one of the few states that does not tax UI benefits at the state level, which makes effective benefits somewhat higher than the nominal rate suggests. Compare Pennsylvania to all states at [SavingToInvest’s state unemployment benefits guide](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/). Covered in this Article: [Toggle](#) - [2026 Benefit Amounts and Duration](#2026_Benefit_Amounts_and_Duration) - [Who Qualifies](#Who_Qualifies) - [Partial Unemployment for Part-Time Workers and Reduced Hours](#Partial_Unemployment_for_Part-Time_Workers_and_Reduced_Hours) - [Tax Implications of Pennsylvania Unemployment Benefits](#Tax_Implications_of_Pennsylvania_Unemployment_Benefits) - [How to File](#How_to_File) - [Other Benefits Available to Unemployed Pennsylvania Workers](#Other_Benefits_Available_to_Unemployed_Pennsylvania_Workers) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## 2026 Benefit Amounts and Duration Pennsylvania’s **maximum weekly UC benefit is $605** for 2026. The minimum is $36. Benefits last up to **26 weeks**. Your Weekly Benefit Amount is calculated at approximately **50% of your average weekly wage** during the base period, subject to the $605 cap. The base period is the first four of the last five completed calendar quarters before filing. Pennsylvania also offers a **dependent allowance** of $5 per week for a spouse, $3 per week for each dependent child (up to 7), and $5 for parents you financially support. Things can change — I’ll update this page when any adjustments are announced. [Subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## Who Qualifies To receive Pennsylvania UC benefits, you must: - Have earned at least **$116 per week in at least 18 base weeks**, or have total base year wages of at least **$1,688** (higher threshold if you work fewer than 18 weeks) - Have lost your job through no fault of your own (layoff, reduction in force, business closure) - Be physically able and available for suitable work - Actively seek employment — Pennsylvania requires applicants to be registered with PA CareerLink and make job contacts Pennsylvania requires you to register with PA CareerLink at jobgateway.pa.gov and certify biweekly through the PA UC Service Center (pauc.gov) or by phone at 888-313-7284. Workers fired for willful misconduct or who quit without good cause are generally ineligible. Pennsylvania recognizes good cause for domestic violence, medical conditions, and significant employer-imposed changes to employment terms. ## Partial Unemployment for Part-Time Workers and Reduced Hours Pennsylvania’s partial UC formula: you may earn up to **40% of your WBA** without any benefit reduction. Earnings above that threshold reduce your benefit dollar-for-dollar. For example, if your WBA is $500 (40% = $200) and you earn $300: - Disregard: $200 - Deductible earnings: $300 − $200 = $100 - Adjusted WBA: $500 − $100 = $400 This is a fairly generous partial-work formula. Workers whose hours are reduced — whether from temporary layoff days or partial reductions — can collect under the same formula. Report all gross earnings when certifying biweekly. ## Tax Implications of Pennsylvania Unemployment Benefits **Pennsylvania does not tax unemployment compensation** at the state level. Pennsylvania also has a flat 3.07% income tax rate but explicitly excludes UC benefits from taxable income. This provides real savings for claimants. At the **federal level**, UI is taxable as ordinary income. You’ll receive Form 1099-G from L&I by January 31 — my [IRS refund schedule guide](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) and [tax filing dates guide](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) cover the key dates. You can elect federal withholding from your weekly payments when certifying. Pennsylvania state withholding is not needed. ## How to File File your claim at **pauc.gov** or call 888-313-7284. You’ll need your Social Security number, complete work history for the past 18 months, and bank account details for direct deposit via PA Way2Go debit card or ACH. There is a **one-week waiting period** before benefits start. After approval, certify biweekly through pauc.gov — report all work and earnings each period. If your claim is denied, you have **15 days** from the mailing date to file an appeal with the UC Service Center. ## Other Benefits Available to Unemployed Pennsylvania Workers **Medicaid**: Pennsylvania expanded Medicaid in 2015. Adults earning up to 138% of the federal poverty level qualify for free comprehensive coverage through PA Medical Assistance. Apply at COMPASS (compass.state.pa.us) or your local County Assistance Office. **CHIP**: CHIP provides low-cost health coverage for children and pregnant women above Medicaid income thresholds. Apply through COMPASS or call 800-986-5437. **SNAP (Food Assistance)**: Pennsylvania SNAP provides monthly food benefits via EBT — see my [full Pennsylvania SNAP guide](https://savingtoinvest.com/pennsylvania-pa-snap-program/) for current amounts and deposit dates. Apply at COMPASS or your local County Assistance Office. Net income limits are at 100% of the federal poverty level (Pennsylvania uses a gross income test of 130% FPL for standard households). **LIHEAP (Energy Assistance)**: Pennsylvania’s LIHEAP program provides cash assistance for heating bills and crisis assistance for energy emergencies. Apply in the fall at your local County Assistance Office or online at COMPASS. **PA CareerLink Centers**: Pennsylvania’s CareerLink network provides free job search assistance, workforce training, skills assessments, and access to WIOA-funded training programs. Find your nearest office at jobgateway.pa.gov. ## Looking Ahead: 2027 Outlook Pennsylvania adjusts its UC maximum each January based on the statewide average weekly wage. The 2027 rate will depend on statewide wage growth through 2026 — I haven’t seen a specific figure confirmed yet, but the statutory formula makes another increase likely. Pennsylvania has also been modernizing its UC IT system (UCM project) — processing times and portal features may improve as that continues. I’ll update this page when the 2027 maximum is announced. ## Common Issues to Watch Out For **Overpayment notices and waivers.** If L&I later determines you were paid more than you should have been — a common trigger is a late employer wage report or an error on a certification — you’ll get an overpayment notice. Non-fraud overpayments can sometimes be waived or set up on a repayment plan; fraud overpayments generally can’t be waived and carry a penalty. If you get one, don’t ignore it — respond by the deadline and ask about your options. **Not documenting your work-search activities.** L&I can ask you to produce records of your job search retroactively. Save the company name, date, and how you applied for every contact as you go — a missing record is one of the more common reasons a certification gets questioned after the fact. **Missing the 15-day appeal window.** If you’re denied, you have 15 days from the mailing date to file an appeal with the UC Service Center. Don’t wait to gather every document first — file the appeal, then assemble your evidence. --- Frequently Asked Questions QWhat is Pennsylvania's maximum weekly unemployment benefit for 2026? A$605 per week, effective January 1, 2026 — up from $561. Benefits last up to 26 weeks. Pennsylvania also provides a small dependent allowance. QDoes Pennsylvania tax unemployment benefits? ANo — Pennsylvania does not tax UC benefits at the state level. Pennsylvania's flat 3.07% income tax explicitly excludes unemployment compensation. Federal taxes still apply. QHow does partial unemployment work in Pennsylvania? APennsylvania disregards 40% of your WBA from weekly gross earnings. Earnings above that reduce your benefit dollar-for-dollar. Certify biweekly through pauc.gov and report all earnings. QDoes Pennsylvania have Medicaid for unemployed adults? AYes — Pennsylvania expanded Medicaid in 2015. Adults earning up to 138% of the federal poverty level qualify for free comprehensive coverage. Apply at COMPASS (compass.state.pa.us). QWhat is Pennsylvania's work-search requirement? APennsylvania requires you to register with PA CareerLink at jobgateway.pa.gov and actively seek suitable work each week. Document your job contacts — they may be verified. **Categories:** Government Rebates and Payments --- ### [Oregon Unemployment Benefits: 2027 Outlook, Current 2026 Amount Up to $902/Week for 26 Weeks](https://savingtoinvest.com/oregon-unemployment-benefits/) **Published:** June 20, 2026 **Author:** Andy **Content:** ### Key Takeaways - Oregon's maximum weekly unemployment benefit is $902 in 2026 — one of the highest caps in the Pacific Northwest, reflecting Oregon's higher wage levels and cost of living. - Benefits last up to 26 weeks under normal conditions. - Oregon uses a dollar-for-dollar formula for partial UI with no WBA disregard — any dollar earned above $300 per week reduces your benefit dollar-for-dollar; the first $300 of earnings is protected. - Oregon taxes unemployment benefits as ordinary state income at graduated rates up to 9.9% — among the highest state income tax rates in the country; federal taxes also apply. - Beyond UI, unemployed Oregonians can access Oregon Health Plan Medicaid (expanded), CHIP, SNAP, LIHEAP, Paid Leave Oregon, and career services through WorkSource Oregon. Oregon’s unemployment insurance program — managed by the [Oregon Employment Department (OED)](https://unemployment.oregon.gov/) — provides up to $902 per week. That 2026 maximum adjusts periodically; I haven’t seen a specific figure confirmed for 2027 yet. Oregon has a strong safety net overall, including one of the most comprehensive Medicaid expansions and a relatively new Paid Leave Oregon program. However, Oregon’s high state income taxes mean UI benefits face a larger state tax bite than in most states — plan accordingly. See how Oregon compares nationally at [SavingToInvest’s state unemployment benefits comparison](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/). Covered in this Article: [Toggle](#) - [2026 Benefit Amounts and Duration](#2026_Benefit_Amounts_and_Duration) - [Who Qualifies](#Who_Qualifies) - [Partial Unemployment for Part-Time Workers and Reduced Hours](#Partial_Unemployment_for_Part-Time_Workers_and_Reduced_Hours) - [Tax Implications of Oregon Unemployment Benefits](#Tax_Implications_of_Oregon_Unemployment_Benefits) - [How to File](#How_to_File) - [Other Benefits Available to Unemployed Oregon Workers](#Other_Benefits_Available_to_Unemployed_Oregon_Workers) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## 2026 Benefit Amounts and Duration Oregon’s **maximum weekly benefit is $902** for 2026. The minimum is $211 for new claims filed on or after June 28, 2026 ($204 for earlier 2026 claims). Benefits last up to **26 weeks**. Your Weekly Benefit Amount is calculated at approximately **1.25% of your total base period wages** (or roughly 47% of your average weekly wage), subject to the state cap. The base period is the first four of the last five completed calendar quarters before filing. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates as Oregon’s unemployment rules evolve.* ## Who Qualifies To receive Oregon UI benefits, you must: - Have earned wages in **at least two quarters** of the base period - Have wages in your **highest quarter of at least $1,000** - Have total base period wages of at least **$1,000** and at least 500 hours worked OR total wages at least 1.5× your high-quarter wages - Have lost your job through no fault of your own (layoff, reduction in force, plant closure) - Be physically able and available to work, and actively seeking new employment Oregon requires claimants to make three work-search contacts per week and register at iMatchSkills.org. Certify weekly through the OED online portal or the Frances Online system. Workers fired for misconduct or who quit without good cause are generally ineligible. Oregon recognizes domestic violence, medical conditions, and significant employer-imposed changes as good cause. ## Partial Unemployment for Part-Time Workers and Reduced Hours Oregon’s partial UI formula is different from most states. Rather than a percentage disregard, Oregon protects the **first $300 of weekly earnings**. Earnings above $300 reduce your benefit dollar-for-dollar. If you earn $300 or less: no reduction to your benefit. If you earn $400: benefit is reduced by $100 ($400 − $300). If you earn $902 or more (equal to your max WBA): you receive $0 in UI for that week. Oregon also offers a **Work Share program** — employers can reduce hours for all employees instead of laying off some, and affected workers receive partial UI for the lost hours. This keeps workers attached to their employer during slow periods. Workers whose employer reduced their hours can file for partial UI while remaining available for full-time work. ## Tax Implications of Oregon Unemployment Benefits Oregon taxes unemployment compensation as ordinary income at the **state level**. Oregon has some of the highest state income tax rates in the country — graduated rates ranging from 4.75% to **9.9%** for 2026. Most UI recipients will likely pay in the 6.75%–8.75% range depending on total annual income. At the **federal level**, UI is taxable as ordinary income. You’ll receive Form 1099-G from OED each January — my [IRS refund schedule guide](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) and [tax filing dates guide](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) cover the key dates. You can elect federal withholding at 10% and Oregon state withholding at your marginal rate from your weekly payments. Given Oregon’s high rates, Oregon withholding is strongly recommended. Oregon also has a **statewide transit tax** (Statewide Transit Tax / STT) that applies to wages but not to unemployment benefits — so your UI is not subject to the STT. ## How to File File your claim at **unemployment.oregon.gov** or call 877-345-3484. You’ll need your Social Security number, work history for the past 18 months, and bank account details for direct deposit. There is a **one-week waiting period** before benefits start. Certify weekly through the Frances Online portal. Report earnings and three job-search contacts per week. If denied, you have **20 days** from the mailing date to appeal to the OED Hearings Unit. ## Other Benefits Available to Unemployed Oregon Workers **Oregon Health Plan (OHP/Medicaid)**: Oregon expanded Medicaid under the ACA and has one of the most comprehensive Medicaid programs in the country. Adults earning up to 138% of the federal poverty level qualify for full OHP coverage. Oregon has also received federal waivers for expanded coverage. Apply at OregonHealthCare.gov. **Oregon CHIP**: The Children’s Health Insurance Program (CHIP) in Oregon extends health coverage for children in households earning up to 300% of the federal poverty level. Apply at OregonHealthCare.gov. **SNAP (Food Assistance)**: Oregon’s SNAP program provides monthly food benefits via EBT card — see my [full Oregon SNAP guide](https://savingtoinvest.com/oregon-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) for current amounts and deposit dates. Oregon uses a broad categorical eligibility rule, allowing income limits up to 185% of the federal poverty level. Apply at benefits.oregon.gov. **LIHEAP (Energy Assistance)**: Oregon’s Energy Assistance Program (EAP) provides LIHEAP funds for heating costs. Apply through your local Community Action Agency or at benefits.oregon.gov. **Paid Leave Oregon**: Oregon launched Paid Leave Oregon in September 2023 — a statewide paid family and medical leave insurance program. If you’ve paid into the program, you may be eligible for paid leave benefits for qualifying family or medical events, separate from UI. **WorkSource Oregon**: WorkSource Oregon centers offer free job search assistance, resume help, and access to WIOA training grants. Oregon has strong workforce development programs, particularly in technology and clean energy sectors. ## Looking Ahead: 2027 Outlook Oregon’s high income tax rate is a consistent concern for UI recipients, and I haven’t seen a proposal to lower it for 2027. Oregon has been expanding its safety net programs — including Oregon’s unique Paid Leave program — which may interact with UI eligibility in certain circumstances. Check with OED if you have both UI and Paid Leave claims. I haven’t seen a specific 2027 maximum-benefit figure announced yet — I’ll update this page once OED confirms it. ## Common Issues to Watch Out For **Overpayment notices and waivers.** If OED later determines you were paid more than you should have been — a common trigger is a late employer wage report or an error on a certification — you’ll get an overpayment notice. Non-fraud overpayments can sometimes be waived or set up on a repayment plan; fraud overpayments generally can’t be waived and carry a penalty. If you get one, don’t ignore it — respond by the deadline and ask about your options. **Not documenting your three weekly work-search contacts.** OED can ask you to produce records of your job search retroactively. Save the company name, date, and how you applied for every contact as you go — a missing record is one of the more common reasons a certification gets questioned after the fact. **Missing the 20-day appeal window.** If you’re denied, you have 20 days from the mailing date to appeal to the OED Hearings Unit. Don’t wait to gather every document first — file the appeal, then assemble your evidence. --- Frequently Asked Questions QWhat is Oregon's maximum weekly unemployment benefit for 2026? AThe maximum is $902 per week, lasting up to 26 weeks. Your WBA is set at approximately 1.25% of your total base period wages (about 47% of your average weekly wage), up to the state cap. QDoes Oregon tax unemployment benefits? AYes, and Oregon has some of the highest state income tax rates in the country — graduated rates up to 9.9%. Most UI recipients will pay 6.75%–8.75% in state income tax on their benefits. Federal taxes also apply. Oregon withholding is strongly recommended — elect it through Frances Online at unemployment.oregon.gov. QHow does Oregon's partial unemployment formula work? AOregon protects the first $300 of weekly earnings with no reduction. Earnings above $300 reduce your benefit dollar-for-dollar. This is different from the percentage-based formulas most states use. Oregon's Work Share program also lets employers reduce all workers' hours while keeping them attached to their job. QDoes Oregon have Medicaid for unemployed adults? AYes — Oregon expanded Medicaid (Oregon Health Plan) and has one of the most comprehensive Medicaid programs in the US. Adults up to 138% of the federal poverty level qualify for full OHP coverage. Apply at OregonHealthCare.gov. QWhat is Oregon's work-search requirement? AOregon requires three work-search contacts per week. Register at iMatchSkills.org and document your contacts. WorkSource Oregon center activities count toward your work-search requirement. QWhat other assistance is available to unemployed Oregon workers? AApply for OHP Medicaid and CHIP at OregonHealthCare.gov. Apply for SNAP (185% FPL) and LIHEAP at benefits.oregon.gov. Check Paid Leave Oregon eligibility if you've paid into the program. Visit WorkSource Oregon for free career services and WIOA training. **Categories:** Taxes and Retirement --- ### [Oklahoma Unemployment Benefits: 2027 Outlook, Current 2026 Amount Up to $649/Week for 26 Weeks](https://savingtoinvest.com/oklahoma-unemployment-benefits/) **Published:** June 20, 2026 **Author:** Andy **Content:** ### Key Takeaways - Oklahoma's maximum weekly unemployment benefit is $649 in 2026 — a respectable cap for a state with a moderate cost of living and a significant energy-sector workforce. - Benefits last up to 26 weeks under normal economic conditions. - Oklahoma's partial UI formula allows you to earn wages up to 25% of your WBA per week before benefits start to reduce. - Oklahoma taxes unemployment benefits as ordinary state income at graduated rates up to 4.75% for 2026; federal taxes also apply. - Beyond UI, unemployed Oklahomans can access Oklahoma SoonerCare Medicaid (NOT expanded under ACA — coverage gap exists for adults without dependents), CHIP, SNAP, LIHEAP energy assistance, and career services through Oklahoma Works. Oklahoma’s unemployment insurance program — managed by the [Oklahoma Employment Security Commission (OESC)](https://oklahoma.gov/oesc.html) — provides up to $649 per week. That 2026 maximum adjusts periodically; I haven’t seen a specific figure confirmed for 2027 yet. One important warning for Oklahoma workers: Oklahoma did NOT expand Medicaid under the ACA until 2021, and while SoonerCare (Oklahoma Medicaid) now covers more adults, coverage gaps can still exist depending on income and household composition. See how Oklahoma compares nationally at [SavingToInvest’s state unemployment benefits guide](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/). Covered in this Article: [Toggle](#) - [2026 Benefit Amounts and Duration](https://savingtoinvest.com/?p=71740/#2026_Benefit_Amounts_and_Duration) - [Who Qualifies](https://savingtoinvest.com/?p=71740/#Who_Qualifies) - [Partial Unemployment for Part-Time Workers and Reduced Hours](https://savingtoinvest.com/?p=71740/#Partial_Unemployment_for_Part-Time_Workers_and_Reduced_Hours) - [Tax Implications of Oklahoma Unemployment Benefits](https://savingtoinvest.com/?p=71740/#Tax_Implications_of_Oklahoma_Unemployment_Benefits) - [How to File](https://savingtoinvest.com/?p=71740/#How_to_File) - [Other Benefits Available to Unemployed Oklahoma Workers](https://savingtoinvest.com/?p=71740/#Other_Benefits_Available_to_Unemployed_Oklahoma_Workers) - [Looking Ahead: 2027 Outlook](https://savingtoinvest.com/?p=71740/#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](https://savingtoinvest.com/?p=71740/#Common_Issues_to_Watch_Out_For) ## 2026 Benefit Amounts and Duration Oklahoma’s **maximum weekly benefit is $649** for 2026. The minimum is $16. Benefits last up to **26 weeks**. Your Weekly Benefit Amount is calculated at approximately **1/23rd of your wages in your two highest base period quarters**, subject to the state cap. The base period is the first four of the last five completed calendar quarters before filing. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates as Oklahoma’s unemployment rules evolve.* ## Who Qualifies To receive Oklahoma UI benefits, you must: - Have earned wages in **at least two quarters** of the base period - Have wages in your **highest quarter of at least $1,500** - Have total base period wages of at least **$1.5× your high-quarter wages** - Have lost your job through no fault of your own (layoff, reduction in force, energy sector downturn, plant closure) - Be physically able and available to work, and actively seeking new employment Oklahoma requires claimants to make at least two work-search contacts per week and register at OKJobMatch.gov. Certify weekly through the OESC online portal or by calling the OESC Claimant Assistance Line. Workers fired for misconduct or who quit without good cause are generally ineligible. Oklahoma recognizes domestic violence, medical conditions, and major employer-imposed changes as potential good cause. ## Partial Unemployment for Part-Time Workers and Reduced Hours Oklahoma’s partial UI formula uses a **25% of WBA earnings disregard**: wages up to 25% of your weekly benefit are ignored before benefits start to reduce. Wages above that threshold are deducted dollar-for-dollar. At the maximum benefit of $649, you can earn up to $162.25 per week without any reduction. Earn $300 and your benefit is reduced by $137.75, giving you $511.25 for that week. Workers whose employer reduced hours can also file for partial UI as long as they remain available for full-time work and continue job-search activities. Report all wages when certifying. ## Tax Implications of Oklahoma Unemployment Benefits Oklahoma taxes unemployment compensation as ordinary income at the **state level**. Oklahoma has graduated income tax rates ranging from 0.25% to **4.75%** for 2026 — relatively low rates that have been declining in recent years. Most UI recipients will pay in the 2%–4.75% range depending on total annual income. At the **federal level**, UI is taxable as ordinary income. You’ll receive Form 1099-G from OESC each January — my [IRS refund schedule guide](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) and [tax filing dates guide](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) cover the key dates. You can elect federal withholding at 10% and Oklahoma state withholding from your weekly payments through the OESC portal. ## How to File File your claim at **unemployment.ok.gov** or call 405-525-1500 (Oklahoma City) or 918-596-5500 (Tulsa). You’ll need your Social Security number, work history for the past 18 months, and bank account details for direct deposit. There is a **one-week waiting period** before benefits start. Certify weekly through the OESC portal. Report wages and document at least two job-search contacts per week. If denied, you have **10 days** from the mailing date to appeal to the OESC Board of Review. ## Other Benefits Available to Unemployed Oklahoma Workers **Oklahoma SoonerCare (Medicaid)**: Oklahoma expanded Medicaid (SoonerCare) through State Question 802, effective July 2021. Adults earning up to 138% of the federal poverty level (about $20,120 for a single person in 2026) can now qualify for SoonerCare. This was a major change — prior to 2021, childless adults had few coverage options. Apply at mysoonercare.org. **SoonerCare CHIP**: Oklahoma’s SoonerCare covers children in households earning up to 200% of the federal poverty level (higher for infants). Apply at mysoonercare.org. **SNAP (Food Assistance)**: Oklahoma’s SNAP program provides monthly food benefits via EBT card — see my [full Oklahoma SNAP guide](https://savingtoinvest.com/oklahoma-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) for current amounts and deposit dates. Income limits are at 130% of the federal poverty level. Apply at okdhslive.org or your local OKDHS office. **LIHEAP (Low Income Home Energy Assistance)**: Oklahoma’s LIHEAP provides funds to help with heating and cooling costs — both are important given Oklahoma’s hot summers and cold winters. Apply through your local Community Action Agency. **Oklahoma Works Career Centers**: Oklahoma Works offers free job search assistance, resume help, and access to WIOA training programs. Workers from larger layoffs in the energy sector may qualify for Rapid Response services or Trade Adjustment Assistance. ## Looking Ahead: 2027 Outlook Oklahoma’s income tax rates have been declining under multi-year legislative cuts, and further reductions are possible — I haven’t seen a specific 2027 rate change confirmed yet, so verify the current year rate before filing. Oklahoma’s energy sector remains a major employment driver, and OESC may implement emergency provisions during oil price downturns. I haven’t seen a proposal to change the $649 maximum benefit or 26-week duration for 2027 — I’ll update this page once OESC announces the next figures. ## Common Issues to Watch Out For **Overpayment notices and waivers.** If OESC later determines you were paid more than you should have been — a common trigger is a late employer wage report or an error on a certification — you’ll get an overpayment notice. Non-fraud overpayments can sometimes be waived or set up on a repayment plan; fraud overpayments generally can’t be waived and carry a penalty. If you get one, don’t ignore it — respond by the deadline and ask about your options. **Not documenting your two weekly work-search contacts.** OESC can ask you to produce records of your job search retroactively. Save the company name, date, and how you applied for every contact as you go — a missing record is one of the more common reasons a certification gets questioned after the fact. **Missing the 10-day appeal window.** If you’re denied, you have just 10 days from the mailing date to appeal to the OESC Board of Review — one of the shorter windows in the country. Don’t wait to gather every document first; file the appeal, then assemble your evidence. --- Frequently Asked Questions QWhat is Oklahoma's maximum weekly unemployment benefit for 2026? AThe maximum is $649 per week, lasting up to 26 weeks. Your WBA is calculated at approximately 1/23rd of your wages in your two highest base period quarters, up to the state cap. QDoes Oklahoma tax unemployment benefits? AYes. Oklahoma taxes UI as ordinary income at graduated rates up to 4.75% for 2026 — among the lower state income tax rates nationally. Federal taxes also apply. Elect state and federal withholding through unemployment.ok.gov. QDoes Oklahoma have Medicaid for unemployed adults? AYes, since July 2021. Oklahoma expanded Medicaid (SoonerCare) through a 2020 voter initiative, covering adults up to 138% of the federal poverty level. With only UI as income, most claimants will qualify. Apply at mysoonercare.org. Prior to 2021, Oklahoma had a coverage gap for childless adults — that gap is now closed. QHow does partial unemployment work in Oklahoma? AOklahoma disregards wages up to 25% of your WBA. Wages above that threshold reduce your benefit dollar-for-dollar. At the maximum of $649, you can earn up to $162.25/week before benefits are affected. QWhat is Oklahoma's work-search requirement? AOklahoma requires at least two work-search contacts per week. Register at OKJobMatch.gov and document your contacts. Oklahoma Works Career Center activities count toward the requirement. QWhat other assistance is available to unemployed Oklahoma workers? AApply for SoonerCare Medicaid and CHIP at mysoonercare.org. Apply for SNAP at okdhslive.org. Apply for LIHEAP heating/cooling assistance through your local Community Action Agency. Visit Oklahoma Works Career Centers for free career services and WIOA training. **Categories:** Taxes and Retirement --- ### [North Dakota Unemployment Benefits: 2027 Outlook, Current 2026 Amount Up to $815/Week for 26 Weeks](https://savingtoinvest.com/north-dakota-unemployment-benefits/) **Published:** June 20, 2026 **Author:** Andy **Content:** ### Key Takeaways - North Dakota's maximum weekly unemployment benefit is $815 in 2026 — one of the higher caps in the Upper Midwest, reflecting the state's historically strong wages in energy and agriculture sectors. - Benefits last up to 26 weeks under normal conditions. - North Dakota's partial UI formula is generous: you can earn wages up to 60% of your WBA per week before benefits start to reduce — the highest earnings disregard percentage of any state in this guide. - North Dakota taxes unemployment benefits as ordinary state income at graduated rates up to 2.5% — one of the lowest state income tax burdens in the country; federal taxes also apply. - Beyond UI, unemployed North Dakotans can access Medicaid (expanded), CHIP, SNAP, LIHEAP energy assistance, and career services through North Dakota Job Service offices. North Dakota’s unemployment insurance program — managed by [Job Service North Dakota (JSND)](https://www.jobsnd.com/) — provides up to $815 per week. That 2026 maximum adjusts periodically; I haven’t seen a specific figure confirmed for 2027 yet. North Dakota also has one of the most generous partial UI earnings disregards in the country at 60% of WBA — giving workers the most flexibility for part-time income while still collecting benefits. See all state comparisons at [SavingToInvest’s unemployment benefits guide](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/). Covered in this Article: [Toggle](#) - [2026 Benefit Amounts and Duration](#2026_Benefit_Amounts_and_Duration) - [Who Qualifies](#Who_Qualifies) - [Partial Unemployment for Part-Time Workers and Reduced Hours](#Partial_Unemployment_for_Part-Time_Workers_and_Reduced_Hours) - [Tax Implications of North Dakota Unemployment Benefits](#Tax_Implications_of_North_Dakota_Unemployment_Benefits) - [How to File](#How_to_File) - [Other Benefits Available to Unemployed North Dakota Workers](#Other_Benefits_Available_to_Unemployed_North_Dakota_Workers) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## 2026 Benefit Amounts and Duration North Dakota’s **maximum weekly benefit is $815** for 2026. The minimum is $43. Benefits last up to **26 weeks**. Your Weekly Benefit Amount is calculated at approximately **1/65th of your total base period wages**, subject to the state cap. The base period is the first four of the last five completed calendar quarters before filing. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates as North Dakota’s unemployment rules evolve.* ## Who Qualifies To receive North Dakota UI benefits, you must: - Have earned wages in **at least two quarters** of the base period - Have wages in your **highest quarter of at least $2,795** - Have total base period wages of at least **1.5× your highest quarter wages** - Have lost your job through no fault of your own (layoff, reduction in force, plant closure, energy sector downturn) - Be physically able and available to work, and actively seeking new employment North Dakota requires claimants to document work-search activities each week and register at NDWorks.gov. Certify weekly through the JSND online portal. Workers fired for misconduct or who quit without good cause are generally ineligible. North Dakota recognizes good cause for domestic violence, documented medical conditions, or substantial employer-imposed job changes. ## Partial Unemployment for Part-Time Workers and Reduced Hours North Dakota’s partial UI formula uses a **60% of WBA earnings disregard** — the most generous in this guide and one of the highest nationally. Wages up to 60% of your weekly benefit are ignored before benefits start to reduce. Wages above that threshold are deducted dollar-for-dollar. At the maximum benefit of $815, you can earn up to $448.80 per week without any reduction. This is an exceptionally large buffer — meaning workers in North Dakota can take on substantial part-time work without losing most of their UI benefit. Earn $500 and your benefit is reduced by just $51.20 ($500 − $448.80), giving you $696.80 for that week. Workers whose employer reduced their hours can also file for partial UI while remaining available for full-time work. ## Tax Implications of North Dakota Unemployment Benefits North Dakota taxes unemployment compensation as ordinary income at the **state level**. However, North Dakota has one of the lowest state income tax burdens in the country — graduated rates ranging from 1.1% to **2.5%** for 2026 (verify current year rates at tax.nd.gov). Most UI recipients will pay in the 1.1%–2.5% range on their benefits. At the **federal level**, UI is taxable as ordinary income. You’ll receive Form 1099-G from JSND each January — my [IRS refund schedule guide](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) and [tax filing dates guide](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) cover the key dates. You can elect federal withholding at 10% and North Dakota state withholding from your weekly payments through the JSND portal. Given the very low state rate, North Dakota withholding is a small amount. ## How to File File your claim at **jsnd.com** or call 701-328-4995. You’ll need your Social Security number, work history for the past 18 months, and bank account details for direct deposit. There is a **one-week waiting period** before benefits start. Certify weekly through the jsnd.com portal. Report wages and work-search activities each week. If denied, you have **15 days** from the mailing date to appeal to the JSND Appeal Bureau. ## Other Benefits Available to Unemployed North Dakota Workers **North Dakota Medicaid**: North Dakota expanded Medicaid under the ACA. Adults earning up to 138% of the federal poverty level (about $20,120 for a single person in 2026) can qualify for comprehensive Medicaid coverage. Apply at dhs.nd.gov. **Kids Now (CHIP)**: North Dakota’s Kids Now program provides health coverage for children in households earning up to 175% of the federal poverty level. Apply through the Department of Human Services. **SNAP (Food Assistance)**: North Dakota’s SNAP program provides monthly food benefits via EBT card — see my [full North Dakota SNAP guide](https://savingtoinvest.com/north-dakota-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) for current amounts and deposit dates. Income limits are at 130% of the federal poverty level. Apply at dhs.nd.gov or your local Human Service Zone office. **LIHEAP (Energy Assistance Program)**: North Dakota’s Energy Assistance Program (EAP) helps income-eligible households pay heating costs — critical in North Dakota winters. Apply through your local Community Action Agency. **Job Service ND Offices**: Job Service ND provides free job search assistance, labor market information, resume help, and access to WIOA training programs. Trade Adjustment Assistance is available for workers in manufacturing or energy affected by trade. ## Looking Ahead: 2027 Outlook North Dakota’s oil and gas sector creates significant employment volatility, and the UI program plays an important stabilization role during energy downturns. The state’s very low income tax rates have been a point of political pride, and further reductions are possible — I haven’t seen a specific 2027 rate change confirmed yet, so verify the current year rate at tax.nd.gov. Watch for JSND annual benefit maximum announcements — I’ll update this page once the 2027 figure is confirmed. ## Common Issues to Watch Out For **Overpayment notices and waivers.** If JSND later determines you were paid more than you should have been — a common trigger is a late employer wage report or an error on a certification — you’ll get an overpayment notice. Non-fraud overpayments can sometimes be waived or set up on a repayment plan; fraud overpayments generally can’t be waived and carry a penalty. If you get one, don’t ignore it — respond by the deadline and ask about your options. **Not documenting your weekly work-search activities.** JSND can ask you to produce records of your job search retroactively. Save the company name, date, and how you applied for every contact as you go — a missing record is one of the more common reasons a certification gets questioned after the fact. **Missing the 15-day appeal window.** If you’re denied, you have 15 days from the mailing date to appeal to the JSND Appeal Bureau. Don’t wait to gather every document first — file the appeal, then assemble your evidence. --- Frequently Asked Questions QWhat is North Dakota's maximum weekly unemployment benefit for 2026? AThe maximum is $815 per week, lasting up to 26 weeks. Your WBA is calculated at approximately 1/65th of your total base period wages, up to the state cap. QDoes North Dakota tax unemployment benefits? AYes, but at very low rates — North Dakota's graduated income tax tops out at 2.5%, one of the lowest in the country. Federal taxes also apply. You can elect both federal and ND state withholding through jsnd.com. QHow does North Dakota's partial unemployment formula work? ANorth Dakota disregards wages up to 60% of your WBA — the most generous disregard in the guide. At the $815 maximum, you can earn up to $448.80/week before benefits are reduced at all. This is especially valuable for workers picking up substantial part-time work during a job search. QDoes North Dakota have Medicaid for unemployed adults? AYes — North Dakota expanded Medicaid to cover adults up to 138% of the federal poverty level. With only UI as income, most claimants will qualify for free coverage. Apply at dhs.nd.gov. QWhat energy assistance is available during cold North Dakota winters? ANorth Dakota's Energy Assistance Program (EAP) provides LIHEAP funds for heating costs. Apply through your local Community Action Agency — this is one of the most important winter assistance programs given North Dakota's climate. QWhat other assistance is available to unemployed North Dakota workers? AApply for Medicaid and SNAP at dhs.nd.gov. Apply for Kids Now (CHIP) for children there as well. Apply for EAP heating assistance through your local Community Action Agency. Visit Job Service ND offices for free career services and WIOA training. **Categories:** Taxes and Retirement --- ### [North Carolina Unemployment Benefits: 2027 Outlook, Current 2026 Amount $350/Week Maximum for 12 Weeks](https://savingtoinvest.com/north-carolina-unemployment-benefits/) **Published:** August 23, 2020 **Author:** Andy **Content:** ### Key Takeaways - North Carolina's maximum weekly unemployment benefit is $350 in 2026, and the state caps benefits at just 12 weeks — one of the shortest maximum durations in the entire country. - The 12-week cap is tied to the state's unemployment rate, which means durations can theoretically extend to up to 20 weeks during high unemployment periods, but rarely do in practice. - North Carolina does allow partial unemployment benefits, but the rules are strict: you can work up to 32 hours per week or earn up to 20% of your WBA before benefits are reduced. - North Carolina taxes unemployment benefits at the state level at a flat 4.5% rate; federal taxes apply as well. - Beyond UI, unemployed North Carolinians can access Medicaid (with significant income restrictions), SNAP, NC Energy Assistance (LIEAP), and free services through NC Works Career Centers. North Carolina’s unemployment insurance program, run by the [Division of Employment Security (DES)](https://des.nc.gov/), is one of the most restrictive in the United States. The state cap of $350 per week is low compared to peers, and the 12-week maximum duration is tied with Florida for the shortest in the country. Both figures have been essentially flat for years; I haven’t seen a legislative push that would change either for 2027. If you’re relying on UI in North Carolina, it’s critical to plan quickly for the program’s limits — and to understand what other programs you can access alongside it. Covered in this Article: [Toggle](#) - [2026 Benefit Amounts and Duration](#2026_Benefit_Amounts_and_Duration) - [Who Qualifies](#Who_Qualifies) - [Partial Unemployment for Part-Time Workers and Reduced Hours](#Partial_Unemployment_for_Part-Time_Workers_and_Reduced_Hours) - [Tax Implications of North Carolina Unemployment Benefits](#Tax_Implications_of_North_Carolina_Unemployment_Benefits) - [How to File](#How_to_File) - [Other Benefits Available to Unemployed North Carolina Workers](#Other_Benefits_Available_to_Unemployed_North_Carolina_Workers) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## 2026 Benefit Amounts and Duration North Carolina’s **maximum weekly benefit is $350** for 2026. The minimum is $15. Benefits are calculated at roughly 50% of your average weekly wage during the base period, up to the cap. North Carolina ties its **maximum duration to the state unemployment rate** using a sliding scale: - State unemployment rate below 5.5%: **12 weeks maximum** - Rate between 5.5% and 6.0%: 14 weeks - Rate between 6.0% and 6.5%: 16 weeks - Rate between 6.5% and 7.0%: 18 weeks - Rate above 7.0%: 20 weeks With North Carolina’s economy performing relatively well in recent years, the effective cap has been 12 weeks for most claimants. This is a critical planning consideration — you have roughly three months of partial income replacement, not six. See how **North Carolina UI benefits** compare to other states at our [national unemployment benefits comparison](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/) table and [Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get the latest updates as North Carolina’s benefit rules evolve. ## Who Qualifies To receive North Carolina UI benefits, you must: - Have earned at least **$780 in wages during two quarters** of the base period, with total base period wages of at least **$6,006** - Have total base period wages at least **1.5 times your highest quarter wages** - Have lost your job through no fault of your own - Be able to work, available for work, and making an active work search North Carolina requires **five work search contacts per week** — among the highest weekly requirements in any state. Each contact must be documented and may be audited. DES requires you to register at NCWorks Online as part of the eligibility process. Workers fired for misconduct or who quit without adequate cause are generally ineligible. Quitting to care for a sick family member, for documented domestic violence, or because of a verifiable hostile work environment may constitute good cause. ## Partial Unemployment for Part-Time Workers and Reduced Hours North Carolina’s partial UI rules are stricter than most states. You may collect partial benefits if your hours were reduced by your employer, but there are two hard limits: 1. You can work **no more than 32 hours per week** and still collect partial UI 2. You can earn **no more than 20% of your WBA** (beyond an initial $15 disregard) before benefits are reduced In practice: if your WBA is $300, you can earn up to $75 in wages (after the $15 flat disregard) without penalty. Earnings above that are subtracted dollar-for-dollar from your benefit. If you work more than 32 hours in any week, you receive no benefits for that week regardless of how much you earned. The hour-based restriction means that workers whose hours were reduced from 40 to 35 hours per week are fully ineligible for partial benefits — they’d need to be at 32 hours or fewer. This is tighter than any other major state. Report all wages and hours worked when certifying weekly through the DES portal. Underreporting triggers fraud penalties including repayment with interest. ## Tax Implications of North Carolina Unemployment Benefits North Carolina taxes unemployment compensation at the **state level** at a flat **4.5% rate** (for 2026 — this rate has been on a scheduled decline under state tax law, so verify the current year rate at ncdor.gov). You’ll receive Form 1099-G from DES in January. At the **federal level**, UI is taxable ordinary income — my [IRS refund schedule guide](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) and [tax filing dates guide](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) cover the key dates. The combined state-plus-federal tax bite will depend on your total income for the year and your federal marginal rate. You can elect federal income tax withholding at 10% from your weekly payments. North Carolina state income tax can also be withheld — elect this through your DES online account during filing or update it afterward. Given the relatively low weekly amounts, many NC claimants choose not to withhold and instead account for the tax on their annual returns. ## How to File File your claim at **des.nc.gov** (NC DES) online or call 888-737-0259. You’ll need your Social Security number, work history for the past 18 months, and bank details for direct deposit or the NC DES prepaid card. There is a **one-week waiting period** before benefits begin. After approval, certify weekly through the DES portal. Weekly certification closes Sunday nights — missing a weekly certification forfeits that week’s payment. If denied, you have **10 days** from the date of the determination to appeal to the North Carolina Office of Administrative Hearings. ## Other Benefits Available to Unemployed North Carolina Workers Given the state’s relatively short UI duration, knowing what else is available is more important in NC than in most states. **NC Medicaid**: North Carolina expanded Medicaid in late 2023, making it available to adults earning up to 138% of the federal poverty level (about $20,120 for a single person in 2026). If you’ve been on UI for any period, you likely qualify. Apply at dma.ncdhhs.gov or epass.nc.gov. **SNAP (Food and Nutrition Services)**: North Carolina’s version of SNAP is administered by the NC Department of Health and Human Services — see my [full North Carolina SNAP guide](https://savingtoinvest.com/north-carolina-nc-snap-food-and-nutrition-services-program-latest-updates-and-news/) for current amounts and deposit dates. Households with income below 130% FPL qualify. Apply at epass.nc.gov — the online portal handles most assistance programs in a single application. **NC Energy Assistance Program (LIEAP)**: North Carolina’s Low-Income Energy Assistance Program (LIEAP) helps with heating costs for income-eligible households during winter months. Apply through your county Department of Social Services or at epass.nc.gov. **Work First (NC Cash Assistance)**: North Carolina’s Work First program provides temporary cash assistance to families with children who meet income and activity requirements. Contact your county DSS office for details. **NC Works Career Centers**: NC Works statewide centers offer free job search assistance, resume support, labor market information, and skills development. Given the 12-week UI limit, engaging with NC Works early in your job search is especially valuable. Some claimants may qualify for WIOA-funded training programs. **Health Insurance Marketplace**: If you don’t qualify for Medicaid, Healthcare.gov offers ACA plans with income-based premium tax credits. Losing your job is a qualifying life event that lets you enroll outside the normal open enrollment window. ## Looking Ahead: 2027 Outlook The North Carolina unemployment rate is a key number to watch — if it moves above 5.5%, your potential benefit duration could extend to 14 weeks or more, on the sliding scale described above. DES publishes monthly updates. The state’s UI trust fund has been one of the strongest in the Southeast, which has allowed it to avoid FUTA credit reductions that affect claimants indirectly. Advocacy groups have periodically pushed to increase NC’s benefit cap and maximum duration, but I haven’t seen a proposal advance for 2027, and those parameters remain in place as of this writing. Plan your job search assuming 12 weeks — every week beyond that is a bonus, not a guarantee. I’ll update this page if the legislature changes either figure. ## Common Issues to Watch Out For **Overpayment notices and waivers.** If DES later determines you were paid more than you should have been — a common trigger is a late employer wage report or an error on a certification — you’ll get an overpayment notice. Non-fraud overpayments can sometimes be waived or set up on a repayment plan; fraud overpayments generally can’t be waived and carry a penalty. If you get one, don’t ignore it — respond by the deadline and ask about your options. **Not documenting your five weekly work-search contacts.** North Carolina’s requirement is among the highest in the country, and DES can audit your records retroactively. Save the company name, date, and how you applied for every contact as you go — a missing record is one of the more common reasons a certification gets questioned after the fact. **Missing the 10-day appeal window.** If you’re denied, you have just 10 days from the date of the determination to appeal to the North Carolina Office of Administrative Hearings — one of the shorter windows in the country. Don’t wait to gather every document first; file the appeal, then assemble your evidence. --- Frequently Asked Questions QWhat is North Carolina's maximum weekly unemployment benefit for 2026? AThe maximum is $350 per week. Most claimants are currently limited to 12 weeks of benefits (tied to the state unemployment rate), making NC one of the most restrictive states for UI duration. QWhy does North Carolina only give 12 weeks of unemployment benefits? ANC law ties the maximum duration to the state's unemployment rate using a sliding scale — currently between 12 and 20 weeks. With NC's unemployment rate below 5.5%, 12 weeks is the effective cap. If the rate rises above 5.5%, maximum duration would extend to 14 or more weeks. QCan I work part-time and still get North Carolina unemployment benefits? AYes, but the rules are strict. You must work 32 hours or fewer per week, and wages above a small disregard reduce your benefit dollar-for-dollar. If you work more than 32 hours in any week, you receive $0 for that week regardless of earnings. QDoes North Carolina tax unemployment benefits? AYes. NC taxes UI at a flat 4.5% state income tax rate (verify current year rate at ncdor.gov). Federal income tax also applies. You can elect withholding from your weekly payments through the DES online portal. QWhat other programs can I access while on North Carolina unemployment? AApply at epass.nc.gov for Medicaid, SNAP food assistance, LIEAP energy assistance, and Work First cash assistance. NC Works Career Centers offer free job search and retraining services statewide. The health insurance marketplace at Healthcare.gov offers plans with premium tax credits if you don't qualify for Medicaid. QWhat is the work-search requirement in North Carolina? ANorth Carolina requires five documented work-search contacts per week — one of the highest requirements in the country. Register at NCWorks Online as part of your claim. Failing to meet the requirement results in loss of benefits for that week. **Categories:** Government Rebates and Payments --- ### [New York Unemployment Benefits: 2027 Outlook, Current 2026 Amount Up to $869/Week for 26 Weeks](https://savingtoinvest.com/new-york-unemployment-benefits/) **Published:** May 22, 2020 **Author:** Andy **Content:** ### Key Takeaways - New York's maximum weekly unemployment benefit jumped to $869 in 2026 — up from $504 — following a major legislative increase funded through Governor Hochul's FY2026 Enacted Budget, which also paid off New York's $7 billion federal UI trust fund debt. - Benefits last up to 26 weeks under standard conditions. - New York's partial UI formula allows you to work up to three days per week and still collect reduced benefits, using a "day-based" earnings system rather than a dollar-for-dollar formula. - New York taxes unemployment benefits as ordinary state income at graduated rates up to 10.9%; federal taxes also apply. - Beyond UI, unemployed New Yorkers can access Medicaid (expanded through NY State of Health), Essential Plan, SNAP, LIHEAP energy assistance, and career services through NY Department of Labor career centers. New York’s unemployment insurance program — managed by the [New York State Department of Labor (NY DOL)](https://dol.ny.gov/) — is now among the most generous in the country. The maximum benefit rose from $504 to $869 effective with payments issued the week of October 13, 2025 — the first increase since 2019. The increase was part of Governor Hochul’s FY2026 Enacted Budget, which combined the benefit increase with paying off the state’s approximately $7 billion federal UI trust fund loan; I haven’t seen a 2027 adjustment announced yet. That repayment also eliminated the annual Interest Assessment Surcharge (IAS) previously charged to employers. See how New York compares at [SavingToInvest’s state unemployment benefits guide](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/). Covered in this Article: [Toggle](#) - [2026 Benefit Amounts and Duration](#2026_Benefit_Amounts_and_Duration) - [Who Qualifies](#Who_Qualifies) - [Partial Unemployment for Part-Time Workers and Reduced Hours](#Partial_Unemployment_for_Part-Time_Workers_and_Reduced_Hours) - [Tax Implications of New York Unemployment Benefits](#Tax_Implications_of_New_York_Unemployment_Benefits) - [How to File](#How_to_File) - [Other Benefits Available to Unemployed New Yorkers](#Other_Benefits_Available_to_Unemployed_New_Yorkers) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## 2026 Benefit Amounts and Duration New York’s **maximum weekly benefit is $869** for 2026. The minimum is $104. Benefits last up to **26 weeks**. Your Weekly Benefit Amount is calculated at approximately **50% of your average weekly wage** over your base period, up to the $869 cap. The base period is the first four of the last five completed calendar quarters before filing. Things can shift — I’ll update this page when any changes are announced. [Subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## Who Qualifies To receive New York UI benefits, you must: - Have earned wages in **at least two quarters** of the base period - Have wages in your **highest quarter of at least $2,900** - Have total base period wages of at least **1.5× your high-quarter wages** - Have lost your job through no fault of your own (layoff, reduction in force, business closure) - Be physically able and available to start work, and actively seeking new employment New York requires claimants to contact three employers per week and maintain a record of job search activities. Certify weekly through the NY DOL online portal or by calling 888-209-8124. Workers fired for misconduct or who quit without good cause are generally ineligible. New York recognizes good cause for domestic violence, compelling health reasons, and childcare situations where no reasonable alternative exists. ## Partial Unemployment for Part-Time Workers and Reduced Hours New York uses a **day-based partial benefit system** rather than a dollar-for-dollar reduction. You may work up to three days per week and still receive reduced benefits: - Work 0 days: receive 100% of your WBA - Work 1 day: receive 75% of your WBA - Work 2 days: receive 50% of your WBA - Work 3 days: receive 25% of your WBA - Work 4 or more days: no benefit for that week “Days worked” counts any day you earn any wages — even a few hours counts as a full day. Report all work accurately when certifying weekly. Workers whose employer reduced their hours can also collect partial benefits using this day-count formula. ## Tax Implications of New York Unemployment Benefits New York taxes unemployment compensation as ordinary income at the **state level**. New York has graduated income tax rates ranging from 4% to **10.9%** for 2026 (the top rate applies to very high incomes; most UI recipients will pay 4%–6.25%). New York City residents also pay an additional NYC income tax, typically 3.08%–3.88%. At the **federal level**, UI is taxable as ordinary income. You’ll receive Form 1099-G from NY DOL by January 31 — my [IRS refund schedule guide](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) and [tax filing dates guide](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) cover the key dates. You can elect federal and New York state withholding when filing your claim or any time through the online portal. Given New York’s high tax rates and the significant increase in weekly benefits, withholding is strongly recommended. ## How to File File your claim at **dol.ny.gov** or call 888-209-8124. You’ll need your Social Security number, work history for the past 18 months, and bank account details for direct deposit or a KeyBank debit card. There is a **one-week waiting period** before benefits start. After approval, certify weekly through the DOL website — report all work and earnings each week. If your claim is denied, you have **30 days** from the mailing date to request a hearing before an Unemployment Insurance Administrative Law Judge. ## Other Benefits Available to Unemployed New Yorkers **Medicaid / NY State of Health**: New York has one of the most comprehensive Medicaid programs in the country. Adults with low incomes qualify, and the state also offers the Essential Plan for those who earn too much for Medicaid but still need affordable coverage. Apply at nystateofhealth.ny.gov. **SNAP (Food Assistance)**: New York’s SNAP program provides monthly food benefits via EBT — see my [full New York SNAP guide](https://savingtoinvest.com/new-york-ny-snap-program-latest-updates-and-news/) for current amounts and deposit dates. Net income limits are at 100% of the federal poverty level. Apply through your local Department of Social Services or online at mybenefits.ny.gov. **HEAP (Home Energy Assistance Program)**: New York’s HEAP program provides heating assistance for low-income households. Apply through your local social services district in the fall/winter season. Contact 800-342-3009 for information. **NY DOL Career Centers**: The NY DOL career center network provides free job search assistance, resume workshops, skills training, and referrals to WIOA-funded programs. Using career center services also helps satisfy your weekly work-search requirements. ## Looking Ahead: 2027 Outlook The FY2026 budget changes to UI also included an increase in the taxable wage base for employers (from $12,800 to 18% of the state’s average annual wage, phased in through 2026). This increases employer funding of the UI system going forward, which should support the higher benefit levels into 2027. I haven’t seen a further maximum-benefit change announced for 2027, but I’ll update this page if that happens. Given how recently the maximum jumped from $504 to $869, another large increase in 2027 seems less likely than in a typical year — but nothing is confirmed either way. ## Common Issues to Watch Out For **Overpayment notices and waivers.** If NY DOL later determines you were paid more than you should have been — a common trigger is a late employer wage report or an error on a certification — you’ll get an overpayment notice. Non-fraud overpayments can sometimes be waived or set up on a repayment plan; fraud overpayments generally can’t be waived and carry a penalty. If you get one, don’t ignore it — respond by the deadline and ask about your options. **Miscounting partial-benefit days.** New York’s day-based partial system trips people up because any amount of work on a day — even an hour — counts as a full day worked. Track your days carefully when certifying; miscounting can trigger an overpayment finding later. **Missing the 30-day hearing request window.** If you’re denied, you have 30 days from the mailing date to request a hearing before an Administrative Law Judge — one of the longer windows in the country, but still worth acting on right away rather than waiting to gather every document first. --- Frequently Asked Questions QWhat is New York's maximum weekly unemployment benefit for 2026? A$869 per week, effective with payments issued the week of October 13, 2025. This was increased from $504 as part of Governor Hochul's FY2026 Enacted Budget. Benefits last up to 26 weeks. QHow much did New York's unemployment benefit increase? ANew York's maximum weekly benefit rose by $365 per week — from $504 to $869 — the first increase since 2019. The increase was funded through the FY2026 Enacted Budget, which also paid off New York's $7 billion federal UI trust fund debt. QDoes New York tax unemployment benefits? AYes. New York taxes UI at graduated state rates from 4% to 10.9%. NYC residents also pay NYC income tax on top of state tax. Federal taxes also apply. Elect withholding from your weekly payments through the NY DOL portal. QHow does partial unemployment work in New York? ANew York uses a day-based system: working 0 days = 100% WBA; 1 day = 75%; 2 days = 50%; 3 days = 25%; 4+ days = no benefit. Any day with any earnings counts as a worked day. QDoes New York have Medicaid for unemployed adults? AYes — New York has one of the most expansive Medicaid programs in the country. Most adults who lose job-based income will qualify for either Medicaid or the Essential Plan through NY State of Health (nystateofhealth.ny.gov). **Categories:** Government Rebates and Payments --- ### [New Mexico Unemployment Benefits: 2027 Outlook, Current 2026 Amount Up to $624/Week for 26 Weeks](https://savingtoinvest.com/new-mexico-unemployment-benefits/) **Published:** June 20, 2026 **Author:** Andy **Content:** ### Key Takeaways - New Mexico's maximum weekly unemployment benefit is $624 in 2026 — a moderate cap that has been rising in recent years, providing decent income replacement in a state with a relatively lower cost of living. - Benefits last up to 26 weeks under normal economic conditions. - New Mexico's partial UI formula uses a 20% of WBA earnings disregard before benefits start to reduce. - New Mexico taxes unemployment benefits as ordinary state income at graduated rates up to 5.9% for 2026; federal taxes also apply. - Beyond UI, unemployed New Mexicans can access Medicaid (expanded), CHIP (Centennial Care), SNAP, LIHEAP energy assistance, and career services through New Mexico Workforce Connection centers. New Mexico’s unemployment insurance program — managed by the [New Mexico Department of Workforce Solutions (NMDWS)](https://www.dws.nm.gov/Unemployment) — provides up to $624 per week. That 2026 maximum adjusts periodically; I haven’t seen a specific figure confirmed for 2027 yet. New Mexico has one of the higher Medicaid enrollment rates in the country due to its expanded program and relatively lower household incomes, making health coverage continuity during unemployment easier than in many states. See how New Mexico compares nationally at [SavingToInvest’s state unemployment benefits comparison](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/). Covered in this Article: [Toggle](#) - [2026 Benefit Amounts and Duration](#2026_Benefit_Amounts_and_Duration) - [Who Qualifies](#Who_Qualifies) - [Partial Unemployment for Part-Time Workers and Reduced Hours](#Partial_Unemployment_for_Part-Time_Workers_and_Reduced_Hours) - [Tax Implications of New Mexico Unemployment Benefits](#Tax_Implications_of_New_Mexico_Unemployment_Benefits) - [How to File](#How_to_File) - [Other Benefits Available to Unemployed New Mexico Workers](#Other_Benefits_Available_to_Unemployed_New_Mexico_Workers) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## 2026 Benefit Amounts and Duration New Mexico’s **maximum weekly benefit is $624** for 2026. The minimum is $93. Benefits last up to **26 weeks**. Your Weekly Benefit Amount is calculated at approximately **53.5% of your average weekly wage** during the base period, up to the state cap. The base period is the first four of the last five completed calendar quarters before filing. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates as New Mexico’s unemployment rules evolve.* ## Who Qualifies To receive New Mexico UI benefits, you must: - Have earned wages in **at least two quarters** of the base period - Have wages in your **highest quarter of at least $1,382.80** - Have total base period wages of at least **$1,820** - Have lost your job through no fault of your own (layoff, reduction in force, plant closure) - Be physically able and available to work, and actively seeking new employment New Mexico requires claimants to document job-search activities each week — typically three contacts per week. Register with New Mexico Workforce Connection (jobs.state.nm.us). Certify weekly through the Unemployment Insurance Tax & Claims System (ui.nm.gov). Workers fired for misconduct or who quit without good cause are generally ineligible. New Mexico recognizes domestic violence, medical situations, and major employer-imposed changes as potential good cause. ## Partial Unemployment for Part-Time Workers and Reduced Hours New Mexico’s partial UI formula uses a **20% of WBA earnings disregard**: wages up to 20% of your weekly benefit are ignored before benefits start to reduce. Wages above that threshold reduce your benefit dollar-for-dollar. At the maximum benefit of $624, you can earn up to $102 per week without any reduction. Earn $200 and your benefit is reduced by $98, giving you $413 for that week. Workers whose employer reduced hours can also file for partial UI while remaining available for full-time work. Report all wages when certifying weekly through the UITCS portal. ## Tax Implications of New Mexico Unemployment Benefits New Mexico taxes unemployment compensation as ordinary income at the **state level**. New Mexico has graduated income tax rates ranging from 1.7% to **5.9%** for 2026 (rates have been adjusting under recent legislation — verify the current rate at tax.newmexico.gov). Most UI recipients will pay in the 3.2%–5.9% range depending on total annual income. At the **federal level**, UI is taxable as ordinary income. You’ll receive Form 1099-G from NMDWS each January — my [IRS refund schedule guide](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) and [tax filing dates guide](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) cover the key dates. You can elect federal withholding at 10% and New Mexico state withholding from your weekly payments through ui.nm.gov. ## How to File File your claim at **ui.nm.gov** or call 877-664-6984. You’ll need your Social Security number, work history for the past 18 months, and bank account details for direct deposit. There is a **one-week waiting period** before benefits start. Certify weekly through the ui.nm.gov portal. Report wages and work-search contacts each week. If denied, you have **15 days** from the mailing date of the determination to appeal to the New Mexico Workforce Solutions Department Appeal Tribunal. ## Other Benefits Available to Unemployed New Mexico Workers **New Mexico Medicaid (Centennial Care)**: New Mexico expanded Medicaid under the ACA. Adults earning up to 138% of the federal poverty level qualify for comprehensive coverage through Centennial Care. New Mexico has one of the highest Medicaid participation rates in the country. Apply at yes.state.nm.us. **New Mexico CHIP (Centennial Care for children)**: Children in New Mexico households earning up to 235% of the federal poverty level can receive health coverage through the program. Apply at yes.state.nm.us. **SNAP (Food Assistance)**: New Mexico’s SNAP program provides monthly food benefits via EBT — see my [full New Mexico SNAP guide](https://savingtoinvest.com/new-mexico-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) for current amounts and deposit dates. Income limits are at 130% of the federal poverty level. Apply at yes.state.nm.us or your local HSD office. **LIHEAP (Low Income Home Energy Assistance)**: New Mexico’s LIHEAP helps with both heating and cooling costs — the cooling component is important given the state’s hot summers. Apply through your local Community Action Agency or at hsd.state.nm.us. **New Mexico Workforce Connection Centers**: NMWC Centers offer free job search assistance, resume help, and access to WIOA training grants. Workers in industries affected by trade agreements may qualify for Trade Adjustment Assistance. ## Looking Ahead: 2027 Outlook New Mexico’s benefit maximum has been increasing in recent years, and I haven’t seen anything suggesting that trend reverses for 2027 — though NMDWS hasn’t announced a specific figure yet. The state’s income tax rate has also been adjusted under recent legislation; verify the current year rates at tax.newmexico.gov. Legislative sessions at nmlegis.gov are worth monitoring for UI benefit changes — I’ll update this page if anything moves for 2027. ## Common Issues to Watch Out For **Overpayment notices and waivers.** If NMDWS later determines you were paid more than you should have been — a common trigger is a late employer wage report or an error on a certification — you’ll get an overpayment notice. Non-fraud overpayments can sometimes be waived or set up on a repayment plan; fraud overpayments generally can’t be waived and carry a penalty. If you get one, don’t ignore it — respond by the deadline and ask about your options. **Not documenting your weekly work-search contacts.** NMDWS can ask you to produce records of your job search retroactively. Save the company name, date, and how you applied for every contact as you go — a missing record is one of the more common reasons a certification gets questioned after the fact. **Missing the 15-day appeal window.** If you’re denied, you have 15 days from the mailing date of the determination to appeal to the Appeal Tribunal. Don’t wait to gather every document first — file the appeal, then assemble your evidence. --- Frequently Asked Questions QWhat is New Mexico's maximum weekly unemployment benefit for 2026? AThe maximum is $624 per week, lasting up to 26 weeks. Your WBA is set at approximately 53.5% of your average weekly wage during the base period, up to the state cap. QDoes New Mexico tax unemployment benefits? AYes. New Mexico taxes UI as ordinary income at graduated state rates up to 5.9%. Federal taxes also apply. Elect both state and federal withholding through ui.nm.gov. QHow does partial unemployment work in New Mexico? ANew Mexico disregards wages up to 20% of your WBA. Wages above that threshold reduce your benefit dollar-for-dollar. At $624 maximum, you can earn about $102/week before benefits start to reduce. QDoes New Mexico have Medicaid for unemployed adults? AYes — New Mexico expanded Medicaid (Centennial Care) to cover adults up to 138% of the federal poverty level. New Mexico has one of the highest Medicaid enrollment rates nationally. With only UI as income, most claimants will qualify for free coverage. Apply at yes.state.nm.us. QWhat is the work-search requirement in New Mexico? ANew Mexico requires approximately three job-search contacts per week. Register with New Mexico Workforce Connection (jobs.state.nm.us) and keep records. NM Workforce Connection center activities count toward your requirement. QWhat other assistance is available to unemployed New Mexico workers? AApply for Centennial Care Medicaid, SNAP, and CHIP through yes.state.nm.us. Apply for LIHEAP (heating and cooling) through your local Community Action Agency or hsd.state.nm.us. Visit New Mexico Workforce Connection Centers for free career services and WIOA training. **Categories:** Taxes and Retirement --- ### [New Jersey Unemployment Benefits: 2027 Outlook, Current 2026 Amount Up to $905/Week for 26 Weeks](https://savingtoinvest.com/new-jersey-unemployment-benefits/) **Published:** May 25, 2020 **Author:** Andy **Content:** ### Key Takeaways - New Jersey's maximum weekly unemployment benefit is $905 in 2026 — up from $854 — adjusted each January based on 56⅔% of the state average weekly wage. - Benefits last up to 26 weeks under standard conditions. - New Jersey's partial UI formula disregards the first 20% of your WBA from weekly earnings; earnings above that threshold reduce your benefit dollar-for-dollar. - New Jersey does not tax unemployment benefits at the state level; federal taxes still apply. - Beyond UI, unemployed New Jersey residents can access Medicaid (expanded), NJ FamilyCare (CHIP), SNAP, LIHEAP energy assistance, and career services through New Jersey One-Stop Career Centers. New Jersey’s unemployment insurance program — managed by the [NJ Division of Unemployment Insurance](https://myunemployment.nj.gov/) — provides some of the strongest UI benefits in the country. The maximum weekly benefit rose to $905 for 2026, up from $854 the year before, following the statutory annual adjustment; the 2027 maximum hasn’t been announced yet. New Jersey ties its maximum to 56⅔% of the statewide average weekly wage, so benefits keep pace with wages. See how New Jersey compares to all states at [SavingToInvest’s state unemployment benefits breakdown](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/). Covered in this Article: [Toggle](#) - [2026 Benefit Amounts and Duration](#2026_Benefit_Amounts_and_Duration) - [Who Qualifies](#Who_Qualifies) - [Partial Unemployment for Part-Time Workers and Reduced Hours](#Partial_Unemployment_for_Part-Time_Workers_and_Reduced_Hours) - [Tax Implications of New Jersey Unemployment Benefits](#Tax_Implications_of_New_Jersey_Unemployment_Benefits) - [How to File](#How_to_File) - [Other Benefits Available to Unemployed New Jersey Workers](#Other_Benefits_Available_to_Unemployed_New_Jersey_Workers) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## 2026 Benefit Amounts and Duration New Jersey’s **maximum weekly benefit is $905** for 2026. The minimum is $100. Benefits last up to **26 weeks**. Your Weekly Benefit Amount is calculated at **60% of your average weekly wage** during the base period (the first four of the last five completed calendar quarters before filing), subject to the $905 cap. Things can shift — I’ll update this page when any changes are announced. [Subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## Who Qualifies To receive New Jersey UI benefits, you must: - Have earned at least **$283 per week for 20 base weeks**, or have earned at least **$11,300 in total** during the base year - Have lost your job through no fault of your own (layoff, reduction in force, business closure) - Be physically able and available to work immediately - Actively seek employment each week New Jersey requires claimants to register with NJNextStop (jobs.nj.gov) and certify weekly online at myunemployment.nj.gov or by phone at 732-761-2020. Workers fired for misconduct or who quit without good cause are generally ineligible. New Jersey recognizes good cause for domestic violence, compelling health reasons, and significant employer-imposed changes. ## Partial Unemployment for Part-Time Workers and Reduced Hours New Jersey’s partial UI formula disregards **20% of your WBA** from weekly gross earnings. Earnings above that threshold reduce your benefit dollar-for-dollar. For example, if your WBA is $600 (20% = $120) and you earn $250: - Disregard: $120 - Deductible earnings: $250 − $120 = $130 - Adjusted WBA: $600 − $130 = $470 Workers on reduced hours or those who find part-time work while searching for full-time positions can claim partial benefits. Report all earnings accurately when certifying weekly. ## Tax Implications of New Jersey Unemployment Benefits **New Jersey does not tax unemployment compensation** at the state level — one of the few states that explicitly excludes UI from taxable income. This provides significant savings compared to states that tax UI as ordinary income. At the **federal level**, UI is taxable as ordinary income. You’ll receive Form 1099-G from NJDOL by January 31 — my [IRS refund schedule guide](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) and [tax filing dates guide](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) cover the key dates. You can elect federal withholding from your weekly payments when certifying. Even though NJ doesn’t tax UI, federal withholding is recommended to avoid a bill at year-end. ## How to File File your claim at **myunemployment.nj.gov** or call 732-761-2020. You’ll need your Social Security number, complete work history for the past 18 months, and bank account details for direct deposit. There is a **one-week waiting period** before benefits start. After approval, certify weekly online or by phone — report all earnings and work-search activities each week. If your claim is denied, you have **7 days** from the decision date to file an appeal with the Appeal Tribunal. ## Other Benefits Available to Unemployed New Jersey Workers **Medicaid / NJ FamilyCare**: New Jersey expanded Medicaid in 2014. Adults earning up to 138% of the federal poverty level qualify for free comprehensive coverage through NJ FamilyCare. Apply at njfamilycare.org or call 800-701-0710. **CHIP**: NJ FamilyCare also covers children and pregnant women at higher income thresholds. Apply at the same portal. **SNAP (Food Assistance)**: New Jersey’s SNAP program provides monthly food benefits via EBT — see my [full New Jersey SNAP guide](https://savingtoinvest.com/new-jersey-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) for current amounts and deposit dates. Apply at njhelps.org or your county welfare office. Income limits vary by household size. **LIHEAP (Energy Assistance)**: New Jersey’s USF (Universal Service Fund) and LIHEAP programs help with utility costs for low-income households. Apply through NJ Energy Assistance at njenergyassistance.com. **NJ One-Stop Career Centers**: New Jersey’s One-Stop Career Centers (operated through the NJ Division of Workforce Development) provide free job search assistance, skills training, resume help, and access to WIOA training grants. Register at jobs.nj.gov. ## Looking Ahead: 2027 Outlook New Jersey’s benefit maximum adjusts each January based on the statewide average weekly wage, and the rate has consistently increased in recent years. I haven’t seen the 2027 figure confirmed yet, but the statutory formula makes another increase likely — I’ll update this page once NJDOL announces it. New Jersey’s Temporary Disability Insurance (TDI) and Family Leave Insurance (FLI) programs provide additional income replacement for non-work illnesses or family caregiving — these may be relevant if your unemployment relates to health or family circumstances, and I haven’t seen changes proposed to either program for 2027. ## Common Issues to Watch Out For **Overpayment notices and waivers.** If the Division later determines you were paid more than you should have been — a common trigger is a late employer wage report or an error on a certification — you’ll get an overpayment notice. Non-fraud overpayments can sometimes be waived or set up on a repayment plan; fraud overpayments generally can’t be waived and carry a penalty. If you get one, don’t ignore it — respond by the deadline and ask about your options. **Not documenting your work-search activities.** New Jersey can ask you to produce records of your job search retroactively. Save the company name, date, and how you applied for every contact as you go — a missing record is one of the more common reasons a certification gets questioned after the fact. **Missing the 7-day appeal window.** If you’re denied, you have just 7 days from the decision date to appeal — one of the shortest windows in the country. Don’t wait to gather every document first; file the appeal, then assemble your evidence. --- Frequently Asked Questions QWhat is New Jersey's maximum weekly unemployment benefit for 2026? A$905 per week, effective January 1, 2026 — up from $854. Benefits last up to 26 weeks. New Jersey sets its maximum at 56⅔% of the statewide average weekly wage, adjusted annually. QDoes New Jersey tax unemployment benefits? ANo — New Jersey does not tax UI benefits at the state level. Federal taxes still apply. You can elect federal withholding from your weekly payments when certifying at myunemployment.nj.gov. QHow does partial unemployment work in New Jersey? ANew Jersey disregards 20% of your WBA from your weekly gross earnings. Earnings above that threshold reduce your benefit dollar-for-dollar. Report all earnings accurately when certifying. QDoes New Jersey have Medicaid for unemployed adults? AYes — New Jersey expanded Medicaid in 2014 through NJ FamilyCare. Adults earning up to 138% of the federal poverty level qualify for free comprehensive coverage. Apply at njfamilycare.org. QWhat is New Jersey's work-search requirement? ANew Jersey requires active job-search efforts each week. You must register at NJNextStop (jobs.nj.gov) and certify weekly, reporting your job-search activities and any earnings. **Categories:** Government Rebates and Payments **Tags:** NJ, unemployment --- ### [New Hampshire Unemployment Benefits: 2027 Outlook, Current 2026 Amount Up to $427/Week for 26 Weeks](https://savingtoinvest.com/new-hampshire-unemployment-benefits/) **Published:** June 20, 2026 **Author:** Andy **Content:** ### Key Takeaways - New Hampshire's maximum weekly unemployment benefit is $427 in 2026 — moderate for a New England state, but every dollar is tax-free at the state level. - New Hampshire has no state income tax on wages or benefits, so your UI payments are only taxed federally — you can elect 10% federal withholding through the NH Employment Security portal. - Benefits last up to 26 weeks under standard conditions. - New Hampshire's partial UI formula allows you to earn wages up to 30% of your WBA before benefits start to reduce. - Beyond UI, unemployed New Hampshire workers can access NH Medicaid (expanded), CHIP (NH Healthy Kids), SNAP, LIHEAP energy assistance, and career services through NH Works. New Hampshire’s unemployment insurance program — managed by [New Hampshire Employment Security (NHES)](https://www.nhes.nh.gov/) — provides up to $427 per week. That 2026 maximum adjusts periodically; I haven’t seen a specific figure confirmed for 2027 yet. The state has no income tax on wages or benefits — New Hampshire’s long-standing tax philosophy means your UI check arrives without any state tax bite. New Hampshire’s Medicaid expansion and relatively strong workforce services round out a reasonably solid safety net for unemployed workers. See all state comparisons at [SavingToInvest’s unemployment benefits breakdown](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/). Covered in this Article: [Toggle](#) - [2026 Benefit Amounts and Duration](https://savingtoinvest.com/?p=71737/#2026_Benefit_Amounts_and_Duration) - [Who Qualifies](https://savingtoinvest.com/?p=71737/#Who_Qualifies) - [Partial Unemployment for Part-Time Workers and Reduced Hours](https://savingtoinvest.com/?p=71737/#Partial_Unemployment_for_Part-Time_Workers_and_Reduced_Hours) - [Tax Implications of New Hampshire Unemployment Benefits](https://savingtoinvest.com/?p=71737/#Tax_Implications_of_New_Hampshire_Unemployment_Benefits) - [How to File](https://savingtoinvest.com/?p=71737/#How_to_File) - [Other Benefits Available to Unemployed New Hampshire Workers](https://savingtoinvest.com/?p=71737/#Other_Benefits_Available_to_Unemployed_New_Hampshire_Workers) - [Looking Ahead: 2027 Outlook](https://savingtoinvest.com/?p=71737/#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](https://savingtoinvest.com/?p=71737/#Common_Issues_to_Watch_Out_For) ## 2026 Benefit Amounts and Duration New Hampshire’s **maximum weekly benefit is $427** for 2026. The minimum is $32. Benefits last up to **26 weeks**. Your Weekly Benefit Amount is calculated at approximately **1/22nd of your wages in your two highest base period quarters**, subject to the state cap. The base period is the first four of the last five completed calendar quarters. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates as New Hampshire’s unemployment rules evolve.* ## Who Qualifies To receive New Hampshire UI benefits, you must: - Have earned wages in **at least two quarters** of the base period - Have wages in your **highest quarter of at least $1,400** - Have total base period wages of at least **$2,800** (roughly 2× the high-quarter minimum) - Have lost your job through no fault of your own (layoff, reduction in force, plant closure) - Be physically able and available to work, and actively seeking new employment New Hampshire requires claimants to document three work-search activities per week and register with NH Works (nhworks.org). Weekly certifications are submitted through the NHES online portal (nhuis.nh.gov). Workers fired for misconduct or who quit without good cause are generally ineligible. New Hampshire recognizes domestic violence situations, medical conditions, and significant employer-imposed changes as good cause. ## Partial Unemployment for Part-Time Workers and Reduced Hours New Hampshire uses a **30% of WBA earnings disregard**: wages up to 30% of your weekly benefit are ignored before benefits start to reduce. Wages above that threshold are deducted dollar-for-dollar. At the maximum benefit of $427, you can earn up to $128 per week without any reduction. Earn $200 and your benefit is reduced by $72 ($200 − $128), giving you $355 for that week. Workers whose employer reduced their hours can also file for partial UI as long as they remain available for full-time work and continue their job search. ## Tax Implications of New Hampshire Unemployment Benefits New Hampshire has **no state income tax on wages or benefits**. The state historically imposed a “Interest and Dividends Tax” (a tax on investment income), but that tax was fully repealed effective January 1, 2025. As of 2026, there is no individual income tax of any kind in New Hampshire. Your unemployment benefits in New Hampshire are **completely exempt from state income tax**. Only federal income tax applies. You’ll receive Form 1099-G from NHES each January — my [IRS refund schedule guide](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) and [tax filing dates guide](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) cover the key dates. You can elect **10% federal withholding** from your weekly benefit payments through the nhuis.nh.gov portal. Given the reasonable benefit amount and no state tax, this is a clean and simple withholding situation. ## How to File File your claim at **nhuis.nh.gov** or call 603-271-7700. You’ll need your Social Security number, work history for the past 18 months, and bank account details for direct deposit. There is a **one-week waiting period** before benefits start. Certify weekly through the NHES portal. Report wages and three work-search activities per week. If denied, you have **14 days** from the mailing date to appeal to the NHES Appeal Tribunal. ## Other Benefits Available to Unemployed New Hampshire Workers **NH Medicaid**: New Hampshire expanded Medicaid in 2014 (delayed implementation). Adults earning up to 138% of the federal poverty level (about $20,120 for a single person in 2026) can qualify for comprehensive coverage. Apply at dhhs.nh.gov or through the DHHS eligibility offices. **NH Healthy Kids (CHIP)**: Children in New Hampshire households earning up to 312% of the federal poverty level can receive health coverage through NH Healthy Kids at low or no cost. Apply through the DHHS. **SNAP (Food Assistance)**: New Hampshire’s SNAP program provides monthly food benefits via EBT card — see my [full New Hampshire SNAP guide](https://savingtoinvest.com/new-hampshire-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) for current amounts and deposit dates. Income limits are at 185% of the federal poverty level (NH uses a higher threshold). Apply at dhhs.nh.gov or your local District Office. **LIHEAP (Home Energy Assistance)**: New Hampshire administers LIHEAP and Fuel Assistance through the NH Office of Strategic Initiatives. Given New Hampshire’s cold winters and high energy costs, this is an important benefit. Apply through your local Community Action Agency. **NH Works Career Centers**: NH Works Career Centers offer free job search assistance, resume help, and access to WIOA training grants. Trade Adjustment Assistance is available for workers in manufacturing affected by foreign trade. ## Looking Ahead: 2027 Outlook New Hampshire’s benefit cap has been relatively stable, and I haven’t seen a legislative push that would change the maximum or duration for 2027. The final repeal of the Interest and Dividends Tax in 2025 confirmed New Hampshire’s status as a true no-income-tax state — good news for UI recipients that isn’t going anywhere. Watch for any NHES announcements on benefit maximum adjustments — I’ll update this page if the 2027 figures change. ## Common Issues to Watch Out For **Overpayment notices and waivers.** If NHES later determines you were paid more than you should have been — a common trigger is a late employer wage report or an error on a certification — you’ll get an overpayment notice. Non-fraud overpayments can sometimes be waived or set up on a repayment plan; fraud overpayments generally can’t be waived and carry a penalty. If you get one, don’t ignore it — respond by the deadline and ask about your options. **Not documenting your three weekly work-search activities.** NHES can ask you to produce records of your job search retroactively. Save the company name, date, and how you applied for every contact as you go — a missing record is one of the more common reasons a certification gets questioned after the fact. **Missing the 14-day appeal window.** If you’re denied, you have 14 days from the mailing date to appeal to the NHES Appeal Tribunal. Don’t wait to gather every document first — file the appeal, then assemble your evidence. --- Frequently Asked Questions QWhat is New Hampshire's maximum weekly unemployment benefit for 2026? AThe maximum is $427 per week, lasting up to 26 weeks. Your WBA is calculated at approximately 1/22nd of your wages in your two highest base period quarters. QDoes New Hampshire tax unemployment benefits? ANo. New Hampshire has no state income tax on wages or benefits. The Interest and Dividends Tax was fully repealed in 2025. Only federal income tax applies to your UI. Elect 10% federal withholding through nhuis.nh.gov. QHow does partial unemployment work in New Hampshire? ANew Hampshire disregards wages up to 30% of your WBA. Wages above that threshold reduce your benefit dollar-for-dollar. At the maximum of $427, you can earn up to $128/week before benefits are affected. QDoes New Hampshire have Medicaid for unemployed adults? AYes — New Hampshire expanded Medicaid to cover adults up to 138% of the federal poverty level. With only UI as income, most claimants will qualify for free coverage. Apply at dhhs.nh.gov. QWhat is New Hampshire's SNAP income limit? ANew Hampshire uses a 185% FPL income threshold for SNAP eligibility — more generous than the federal 130% minimum. Apply through dhhs.nh.gov or your local District Office. QWhat other assistance is available to unemployed New Hampshire workers? AApply for Medicaid, SNAP (185% FPL limit), and NH Healthy Kids (CHIP, 312% FPL) through dhhs.nh.gov. Apply for Fuel Assistance/LIHEAP through your local Community Action Agency. Visit NH Works Career Centers for free career services and WIOA training. **Categories:** Taxes and Retirement --- ### [Nevada Unemployment Benefits: 2027 Outlook, Current 2026 Amount Up to $631/Week for 26 Weeks](https://savingtoinvest.com/nevada-unemployment-benefits/) **Published:** October 4, 2020 **Author:** Andy **Content:** ### Key Takeaways - Nevada's maximum weekly unemployment benefit is $631 in 2026, up from $469, following the annual adjustment based on the average monthly wage for the prior year. - Benefits last up to 26 weeks under standard conditions. - Nevada's partial UI formula allows you to earn up to 25% of your WBA per week before your benefit is reduced; earnings above that reduce your benefit dollar-for-dollar. - Nevada has no state income tax — UI benefits are only subject to federal income tax. - Beyond UI, unemployed Nevadans can access Nevada Medicaid (expanded in 2013), Nevada Check Up (CHIP), SNAP, LIHEAP energy assistance, and career services through Nevada JobConnect offices statewide. Nevada’s unemployment insurance program — managed by the [Nevada Department of Employment, Training and Rehabilitation (DETR)](https://detr.nv.gov/) — raised its maximum weekly benefit to $631 in 2026, up from $469 in 2025. This significant $162 increase follows Nevada’s statutory formula, which ties the maximum to the prior year’s average monthly wage; the 2027 maximum hasn’t been announced yet. One major advantage for Nevada claimants: Nevada has no state income tax, so UI benefits are only subject to federal income tax. See how Nevada compares at [SavingToInvest’s unemployment benefits by state guide](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/). Covered in this Article: [Toggle](#) - [2026 Benefit Amounts and Duration](#2026_Benefit_Amounts_and_Duration) - [Who Qualifies](#Who_Qualifies) - [Partial Unemployment for Part-Time Workers and Reduced Hours](#Partial_Unemployment_for_Part-Time_Workers_and_Reduced_Hours) - [Tax Implications of Nevada Unemployment Benefits](#Tax_Implications_of_Nevada_Unemployment_Benefits) - [How to File](#How_to_File) - [Other Benefits Available to Unemployed Nevada Workers](#Other_Benefits_Available_to_Unemployed_Nevada_Workers) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## 2026 Benefit Amounts and Duration Nevada’s **maximum weekly benefit is $631** for 2026. The minimum is $16. Benefits last up to **26 weeks**. Your Weekly Benefit Amount is calculated at approximately **50% of your average weekly wage** during the base period, subject to the $631 cap. The base period is the first four of the last five completed calendar quarters before filing. Things can change — I’ll update this page when any adjustments are announced. [Subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## Who Qualifies To receive Nevada UI benefits, you must: - Have earned wages in covered employment during the base period - Have wages in your **highest quarter of at least $400** - Have total base period wages of at least **1.5× your high-quarter wages** - Have lost your job through no fault of your own (layoff, reduction in force, business closure) - Be physically able and available for suitable work - Actively seek employment each week Register with Nevada JobConnect at nevadajobconnect.com and certify biweekly through the DETR portal or by phone. Nevada requires you to document job search activities each benefit week. Workers fired for misconduct or who quit without good cause are generally ineligible. Nevada recognizes good cause for domestic violence, medical conditions, and substantial employer-imposed changes to employment. ## Partial Unemployment for Part-Time Workers and Reduced Hours Nevada’s partial UI formula: the earnings disregard is **25% of your WBA** per week. Earnings above that threshold reduce your benefit dollar-for-dollar. For example, if your WBA is $500 (25% = $125) and you earn $250: - Disregard: $125 - Deductible earnings: $250 − $125 = $125 - Adjusted WBA: $500 − $125 = $375 Workers on reduced hours or those taking part-time work while job searching can file for partial benefits. All gross earnings must be reported when certifying each week. ## Tax Implications of Nevada Unemployment Benefits **Nevada has no state income tax** — UI benefits are not subject to state income tax. This is a meaningful advantage for Nevada claimants compared to neighboring states. At the **federal level**, UI is taxable as ordinary income. You’ll receive Form 1099-G from DETR by January 31 — my [IRS refund schedule guide](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) and [tax filing dates guide](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) cover the key dates. You can elect federal withholding from your weekly payments when certifying. Since there’s no state withholding to worry about, just elect the federal withholding amount you want. ## How to File File your claim at **ui.nv.gov** or call 888-890-8211. You’ll need your Social Security number, work history for the past 18 months, and bank account details for direct deposit. There is a **one-week waiting period** before benefits start. After approval, certify biweekly through the DETR portal — report all earnings and work-search activities for each week in the certification period. If your claim is denied, you have **11 days** from the decision date to file an appeal with the DETR Employment Security Division. ## Other Benefits Available to Unemployed Nevada Workers **Nevada Medicaid**: Nevada expanded Medicaid in 2013. Adults earning up to 138% of the federal poverty level qualify for free comprehensive coverage. Apply at dwss.nv.gov (Division of Welfare and Supportive Services) or AccessNevada (accessnv.nv.gov). **Nevada Check Up (CHIP)**: Nevada Check Up provides low-cost health coverage for children in households up to 205% of the federal poverty level. Apply through Nevada Medicaid at accessnv.nv.gov. **SNAP (Food Assistance)**: Nevada SNAP provides monthly food benefits via EBT — see my [full Nevada SNAP guide](https://savingtoinvest.com/nevada-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) for current amounts and deposit dates. Apply at accessnv.nv.gov or your local DWSS office. Income limits vary by household size. **LIHEAP (Low-Income Home Energy Assistance Program)**: Nevada’s LIHEAP helps with home energy costs (primarily air conditioning in summer given Nevada’s climate, plus heating). Apply through your county’s human services agency or the Community Services Agency. **Nevada JobConnect**: Nevada’s JobConnect offices provide free job placement, skills training, resume help, and access to WIOA-funded training programs. Participating in JobConnect activities also satisfies work-search requirements. Find your nearest office at nevadajobconnect.com. ## Looking Ahead: 2027 Outlook Nevada’s benefit maximum adjusts annually using a statutory formula tied to the prior year’s average monthly wage. The significant $162 increase for 2026 reflected strong wage growth in the Las Vegas and Reno metro areas. The 2027 maximum will be set using 2025 wage data and hasn’t been announced yet — I’ll update this page when DETR confirms it. Nevada does not currently have its own state disability insurance or paid family leave program, so UI remains the primary income replacement for most workers — I haven’t seen legislative movement toward creating one for 2027. ## Common Issues to Watch Out For **Overpayment notices and waivers.** If DETR later determines you were paid more than you should have been — a common trigger is a late employer wage report or an error on a certification — you’ll get an overpayment notice. Non-fraud overpayments can sometimes be waived or set up on a repayment plan; fraud overpayments generally can’t be waived and carry a penalty. If you get one, don’t ignore it — respond by the deadline and ask about your options. **Not documenting your work-search activities.** DETR can ask you to produce records of your job search retroactively. Save the company name, date, and how you applied for every contact as you go — a missing record is one of the more common reasons a certification gets questioned after the fact. **Missing the 11-day appeal window.** If you’re denied, you have just 11 days from the decision date to appeal — one of the shorter windows in the country. Don’t wait to gather every document first; file the appeal, then assemble your evidence. --- Frequently Asked Questions QWhat is Nevada's maximum weekly unemployment benefit for 2026? A$631 per week, up from $469 in 2025 — a $162 increase. Benefits last up to 26 weeks. Nevada's maximum is based on the prior year's average monthly wage. QDoes Nevada tax unemployment benefits? ANo. Nevada has no state income tax, so UI benefits are only subject to federal income tax. You can elect federal withholding from your weekly payments when filing at ui.nv.gov. QHow does partial unemployment work in Nevada? ANevada disregards 25% of your WBA from weekly gross earnings. Earnings above that reduce your benefit dollar-for-dollar. Report all earnings when certifying biweekly through the DETR portal. QDoes Nevada have Medicaid for unemployed adults? AYes — Nevada expanded Medicaid in 2013. Adults earning up to 138% of the federal poverty level qualify for free comprehensive coverage. Apply at accessnv.nv.gov. QWhy did Nevada's maximum UI benefit increase so much in 2026? ANevada's maximum is tied to the prior year's average monthly wage. Nevada's economy — particularly the Las Vegas resort/gaming sector and Reno's logistics and tech growth — has pushed average wages up significantly, driving the $162 increase to $631. **Categories:** unemployment --- ### [Nebraska Unemployment Benefits: 2027 Outlook, Current 2026 Amount Up to $582/Week for 26 Weeks](https://savingtoinvest.com/nebraska-unemployment-benefits/) **Published:** June 20, 2026 **Author:** Andy **Content:** ### Key Takeaways - Nebraska's maximum weekly unemployment benefit is $582 in 2026 — a solid cap for a state with moderate cost of living outside of Omaha and Lincoln. - Benefits last up to 26 weeks under normal conditions. - Nebraska's partial UI formula uses a 25% of WBA earnings disregard, giving workers a modest buffer for part-time wages. - Nebraska taxes unemployment benefits as ordinary state income at graduated rates up to 5.84% for 2026; federal taxes also apply. - Beyond UI, unemployed Nebraskans can access Nebraska Medicaid (expanded in 2020), CHIP, SNAP, LIHEAP energy assistance, and career services through NEworks job centers. Nebraska’s unemployment insurance program — managed by the [Nebraska Department of Labor (NDOL)](https://dol.nebraska.gov/uibenefits) — provides up to $582 per week. That 2026 maximum adjusts periodically; I haven’t seen a specific figure confirmed for 2027 yet. Nebraska expanded Medicaid in 2020 following a voter initiative, which significantly strengthened the safety net for unemployed workers. See how Nebraska’s benefits compare nationally at [SavingToInvest’s state unemployment benefits guide](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/). Covered in this Article: [Toggle](#) - [2026 Benefit Amounts and Duration](https://savingtoinvest.com/?p=71736/#2026_Benefit_Amounts_and_Duration) - [Who Qualifies](https://savingtoinvest.com/?p=71736/#Who_Qualifies) - [Partial Unemployment for Part-Time Workers and Reduced Hours](https://savingtoinvest.com/?p=71736/#Partial_Unemployment_for_Part-Time_Workers_and_Reduced_Hours) - [Tax Implications of Nebraska Unemployment Benefits](https://savingtoinvest.com/?p=71736/#Tax_Implications_of_Nebraska_Unemployment_Benefits) - [How to File](https://savingtoinvest.com/?p=71736/#How_to_File) - [Other Benefits Available to Unemployed Nebraska Workers](https://savingtoinvest.com/?p=71736/#Other_Benefits_Available_to_Unemployed_Nebraska_Workers) - [Looking Ahead: 2027 Outlook](https://savingtoinvest.com/?p=71736/#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](https://savingtoinvest.com/?p=71736/#Common_Issues_to_Watch_Out_For) ## 2026 Benefit Amounts and Duration Nebraska’s **maximum weekly benefit is $582** for 2026. The minimum is $70. Benefits last up to **26 weeks**. Your Weekly Benefit Amount is calculated at approximately **1/20th of your wages in your highest base period quarter**, subject to the state cap. The base period is the first four of the last five completed calendar quarters before filing. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates as Nebraska’s unemployment rules evolve.* ## Who Qualifies To receive Nebraska UI benefits, you must: - Have earned wages in **at least two quarters** of the base period - Have wages in your **highest quarter of at least $4,656** (for 2026 — adjusts annually) - Have total base period wages of at least **$9,312** (approximately 2× the high-quarter minimum) - Have lost your job through no fault of your own (layoff, reduction in force, plant closure) - Be physically able and available to work, and actively seeking new employment Nebraska requires claimants to make at least three work-search contacts per week and register at NEworks.nebraska.gov. Certify weekly through the NEworks system or by phone. Workers fired for misconduct or who quit without good cause are generally ineligible. Nebraska recognizes domestic violence, medical conditions, and major employer-imposed changes as potential good cause situations. ## Partial Unemployment for Part-Time Workers and Reduced Hours Nebraska’s partial UI formula uses a **25% of WBA earnings disregard**: wages up to 25% of your weekly benefit are ignored before benefits start to reduce. Wages above that threshold are deducted dollar-for-dollar. At the maximum benefit of $582, you can earn up to $145.50 per week without any impact. Earn $250 and your benefit is reduced by $104.50, giving you $477.50 for that week. Workers whose hours were reduced by their employer can file for partial UI, as long as they remain available for full-time work. Report all wages when certifying through the NEworks portal. ## Tax Implications of Nebraska Unemployment Benefits Nebraska taxes unemployment compensation as ordinary income at the **state level**. Nebraska has graduated income tax rates ranging from 2.46% to **5.84%** for 2026 (Nebraska has been on a multi-year tax reduction schedule — verify the current year top rate at revenue.nebraska.gov). Most UI recipients will pay in the 3%–5.84% range depending on total annual income. At the **federal level**, UI is taxable as ordinary income. You’ll receive Form 1099-G from NDOL each January — my [IRS refund schedule guide](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) and [tax filing dates guide](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) cover the key dates. You can elect federal withholding at 10% and Nebraska state withholding from your weekly payments through the NEworks portal. ## How to File File your claim at **neworks.nebraska.gov** or call 402-458-2500 (Lincoln) or 402-595-3093 (Omaha). You’ll need your Social Security number, work history for the past 18 months, and bank account details for direct deposit. There is a **one-week waiting period** before benefits start. Certify weekly through the NEworks portal. Report wages and job-search contacts. If denied, you have **20 days** from the mailing date of the determination to appeal. ## Other Benefits Available to Unemployed Nebraska Workers **Nebraska Medicaid**: Nebraska expanded Medicaid through Ballot Initiative 427 in 2020. Adults earning up to 138% of the federal poverty level (about $20,120 for a single person in 2026) can now qualify for comprehensive Medicaid coverage. Apply at hhswebapp.nebraska.gov. **Nebraska CHIP (Kids Connection)**: Nebraska’s Kids Connection program covers children in households earning up to 200% of the federal poverty level. Apply at hhswebapp.nebraska.gov. **SNAP (Food Assistance)**: Nebraska’s SNAP program provides monthly food benefits via EBT card — see my [full Nebraska SNAP guide](https://savingtoinvest.com/nebraska-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) for current amounts and deposit dates. Income limits are at 130% of the federal poverty level for most households. Apply at hhswebapp.nebraska.gov or your local HHS office. **LIHEAP (Low Income Energy Assistance Program — LIEAP)**: Nebraska’s LIEAP helps income-eligible households pay heating costs during Nebraska’s cold winters. Apply through your local Community Action Agency. **NEworks / American Job Centers**: Nebraska’s NEworks centers offer free job search assistance, resume help, skills assessments, and access to WIOA training grants. Workers from larger layoffs may qualify for Rapid Response services or Trade Adjustment Assistance. ## Looking Ahead: 2027 Outlook Nebraska’s income tax rate has been declining under a multi-year legislative reduction plan, and the top rate is scheduled to keep falling — which could modestly reduce the tax bite on your UI benefits in 2027 if you’re still receiving them. I haven’t seen a proposal to change the $582 maximum benefit or 26-week duration for 2027. Watch for NDOL announcements on any benefit maximum adjustments — Nebraska typically updates its maximum weekly benefit amount annually based on state average wage data. I’ll update this page if either figure changes for 2027. ## Common Issues to Watch Out For **Overpayment notices and waivers.** If NDOL later determines you were paid more than you should have been — a common trigger is a late employer wage report or an error on a certification — you’ll get an overpayment notice. Non-fraud overpayments can sometimes be waived or set up on a repayment plan; fraud overpayments generally can’t be waived and carry a penalty. If you get one, don’t ignore it — respond by the deadline and ask about your options. **Not documenting your three weekly work-search contacts.** NDOL can ask you to produce records of your job search retroactively. Save the company name, date, and how you applied for every contact as you go — a missing record is one of the more common reasons a certification gets questioned after the fact. **Missing the 20-day appeal window.** If you’re denied, you have 20 days from the mailing date to appeal — longer than many states, but still worth filing right away rather than waiting to gather every document first. --- Frequently Asked Questions QWhat is Nebraska's maximum weekly unemployment benefit for 2026? AThe maximum is $582 per week, lasting up to 26 weeks. Your WBA is based on approximately 1/20th of your wages in your highest base period quarter, up to the state cap. QDoes Nebraska tax unemployment benefits? AYes. Nebraska taxes UI as ordinary income at graduated rates up to 5.84% for 2026. Federal taxes also apply. Elect both state and federal withholding through the NEworks portal at neworks.nebraska.gov. QHow does partial unemployment work in Nebraska? ANebraska disregards wages up to 25% of your WBA. Wages above that threshold reduce your benefit dollar-for-dollar. At the maximum of $582, you can earn up to $145.50/week before benefits are affected. QDoes Nebraska have Medicaid for unemployed adults? AYes — Nebraska expanded Medicaid in 2020 (Ballot Initiative 427) to cover adults up to 138% of the federal poverty level. With only UI as income, many claimants will qualify for free coverage. Apply at hhswebapp.nebraska.gov. QWhat is Nebraska's work-search requirement? ANebraska requires three work-search contacts per week. Register at NEworks.nebraska.gov and document your contacts. NEworks activities count toward your work-search requirement. QWhat other assistance is available to unemployed Nebraska workers? AApply for Medicaid, SNAP, and Kids Connection (CHIP) at hhswebapp.nebraska.gov. Apply for LIEAP heating assistance through your local Community Action Agency. Visit NEworks centers for free career services and WIOA training grants. **Categories:** Taxes and Retirement --- ### [Montana Unemployment Benefits: 2027 Outlook, Current 2026 Amount Up to $698/Week for 28 Weeks](https://savingtoinvest.com/montana-unemployment-benefits/) **Published:** June 20, 2026 **Author:** Andy **Content:** ### Key Takeaways - Montana's maximum weekly unemployment benefit is $698 in 2026, and the state offers up to 28 weeks of coverage — two weeks more than the 26-week standard. - Montana's partial UI formula uses a 25% of WBA earnings disregard, giving workers a modest buffer for part-time income. - Montana taxes unemployment benefits as ordinary state income at graduated rates up to 5.9% for 2026; federal taxes also apply. - To qualify, you need wages in at least two base period quarters with a specific earnings minimum in your highest quarter. - Beyond UI, unemployed Montanans can access Medicaid (expanded), CHIP, SNAP, LIHEAP energy assistance, and career services through Montana's Job Service offices. Montana’s unemployment insurance program — managed by the [UI Division of the Montana Department of Labor and Industry](https://uid.dli.mt.gov/) — provides up to $698 per week with a 28-week duration that’s slightly longer than most states. That 2026 maximum adjusts periodically; I haven’t seen a specific figure confirmed for 2027 yet. Montana’s economy — heavily influenced by agriculture, tourism, and extractive industries — can see significant seasonal layoffs, making the UI system important for many workers. See how Montana compares nationally at [SavingToInvest’s unemployment benefits by state breakdown](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/). Covered in this Article: [Toggle](#) - [2026 Benefit Amounts and Duration](#2026_Benefit_Amounts_and_Duration) - [Who Qualifies](#Who_Qualifies) - [Partial Unemployment for Part-Time Workers and Reduced Hours](#Partial_Unemployment_for_Part-Time_Workers_and_Reduced_Hours) - [Tax Implications of Montana Unemployment Benefits](#Tax_Implications_of_Montana_Unemployment_Benefits) - [How to File](#How_to_File) - [Other Benefits Available to Unemployed Montana Workers](#Other_Benefits_Available_to_Unemployed_Montana_Workers) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## 2026 Benefit Amounts and Duration Montana’s **maximum weekly benefit is $698** for 2026. The minimum is $181. Benefits last up to **28 weeks**. Your Weekly Benefit Amount is calculated at approximately **1% of your total base period wages**, subject to the state cap. The base period is the first four of the last five completed calendar quarters before filing. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates as Montana’s unemployment rules evolve.* ## Who Qualifies To receive Montana UI benefits, you must: - Have earned wages in **at least two quarters** of the base period - Have wages in your **highest quarter of at least $4,626** - Have total base period wages of at least **1.5× your highest quarter wages** - Have lost your job through no fault of your own (layoff, reduction in force, business closure) - Be physically able and available to work, and actively seeking new employment Montana requires claimants to document weekly work-search activities — generally three contacts per week. Register with the Montana Job Service (mtjobservice.com). Weekly certifications are submitted through UIConnected at uifiling.mt.gov. Workers fired for misconduct or who quit without good cause are ineligible. Montana recognizes domestic violence, medical conditions, and substantial job changes as potential good cause situations. ## Partial Unemployment for Part-Time Workers and Reduced Hours Montana’s partial UI formula uses a **25% of WBA earnings disregard**: wages up to 25% of your weekly benefit are ignored before benefits reduce. Wages above that threshold reduce your payment dollar-for-dollar. At the maximum benefit of $698, you can earn up to $138 per week without any impact. Earn $225 and your benefit is reduced by $87 ($225 − $138), giving you $465 for that week. Montana’s seasonal economy means partial UI is particularly relevant for workers in agriculture, tourism, or construction who pick up intermittent work. Workers with reduced hours can file for partial benefits while remaining available for full-time work. ## Tax Implications of Montana Unemployment Benefits Montana taxes unemployment compensation as ordinary income at the **state level**. Montana uses a graduated income tax with rates ranging from 1% to **5.9%** for 2026 (verify current year rates at revenue.mt.gov as Montana has been adjusting its tax structure). Most UI recipients will pay in the 4%–5.9% range depending on total annual income. At the **federal level**, UI is taxable as ordinary income. You’ll receive Form 1099-G each January — my [IRS refund schedule guide](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) and [tax filing dates guide](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) cover the key dates. You can elect both federal and Montana state withholding from your weekly payments through the UIConnected portal. ## How to File File your claim at **uifiling.mt.gov** or call 406-444-2545. You’ll need your Social Security number, work history for the past 18 months, and bank account information for direct deposit. There is a **one-week waiting period** before benefits start. Certify weekly through the UIConnected portal. Report wages and job-search contacts each week. If denied, you have **10 days** from the mailing date to appeal to the Unemployment Insurance Appeals Bureau. ## Other Benefits Available to Unemployed Montana Workers **Montana Medicaid**: Montana expanded Medicaid under the ACA in 2016 (Montana HELP Act). Adults earning up to 138% of the federal poverty level (about $20,120 for a single person in 2026) can qualify for comprehensive coverage. Apply at dphhs.mt.gov or enrollmontana.com. **Montana Children’s Health Insurance Program (CHIP — Healthy Montana Kids)**: Children in Montana households earning up to 261% of the federal poverty level can receive health coverage through Healthy Montana Kids at low or no cost. Apply at dphhs.mt.gov. **SNAP (Food Assistance)**: Montana’s SNAP program provides monthly food benefits via EBT — see my [full Montana SNAP guide](https://savingtoinvest.com/montana-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) for current amounts and deposit dates. Income limits are at 130% of the federal poverty level. Apply at dphhs.mt.gov or your local DPHHS office. **LIHEAP (Low Income Energy Assistance — LIEAP)**: Montana’s LIEAP program helps with heating costs — critical given Montana’s harsh winters. Apply through Big Sky Economic Development or local Community Action Agencies. **Montana Job Service**: Montana’s Job Service offices offer free job search help, resume assistance, career coaching, and access to WIOA training grants. Some workers may qualify for Trade Adjustment Assistance (particularly in manufacturing or agriculture affected by trade). ## Looking Ahead: 2027 Outlook Montana’s UI trust fund has been generally stable, which is a good sign for sustained benefit levels heading into 2027 — I haven’t seen a legislative push that would change the maximum or duration. The state’s 28-week benefit duration stays modestly above the national standard, a helpful feature for workers in seasonal industries where finding new work can take longer. I don’t have a specific date to point to for a 2027 benefit change — nothing is currently scheduled — but I’ll update this page if that changes. ## Common Issues to Watch Out For **Overpayment notices and waivers.** If the UI Division later determines you were paid more than you should have been — a common trigger is a late employer wage report or an error on a certification — you’ll get an overpayment notice. Non-fraud overpayments can often be waived or set up on a repayment plan; fraud overpayments generally can’t be waived and carry a penalty. If you get one, don’t ignore it — respond by the deadline and ask about a waiver. **Not documenting your three weekly work-search contacts.** Montana can ask you to produce records of your job search retroactively. Save the company name, date, and how you applied for every contact as you go — a missing record is one of the more common reasons a certification gets questioned after the fact. **Missing the 10-day appeal window.** If you’re denied, you have 10 days from the mailing date to appeal to the Unemployment Insurance Appeals Bureau. Don’t wait to gather every document first — file the appeal, then assemble your evidence. --- Frequently Asked Questions QWhat is Montana's maximum weekly unemployment benefit for 2026? AThe maximum is $698 per week, and benefits last up to 28 weeks — two weeks longer than the 26-week standard in most states. Your WBA is based on approximately 1% of your total base period wages. QDoes Montana tax unemployment benefits? AYes. Montana taxes UI at graduated state rates from 1% to 5.9%. Federal taxes also apply. Elect both state and federal withholding through the UIConnected portal at uifiling.mt.gov. QHow does partial unemployment work in Montana? AMontana disregards wages up to 25% of your WBA. Wages above that threshold reduce your benefit dollar-for-dollar. At the maximum benefit of $698, you can earn up to $138/week before benefits are reduced. QDoes Montana have Medicaid for unemployed adults? AYes — Montana expanded Medicaid (Montana HELP Act) in 2016. Adults up to 138% of the federal poverty level can qualify for comprehensive coverage. Apply at dphhs.mt.gov or enrollmontana.com. QHow is Montana's unemployment system different for seasonal workers? AMontana's 28-week duration is somewhat better than average for seasonal workers who may need longer to return to their primary industry. Partial UI also allows collecting benefits while working intermittently. Register with Montana Job Service for industry-specific job matching. QWhat other assistance is available to unemployed Montana workers? AApply for Medicaid, SNAP, and Healthy Montana Kids (CHIP) at dphhs.mt.gov. Apply for LIEAP heating assistance through your local Community Action Agency. Visit Montana Job Service offices for free career services and WIOA retraining. **Categories:** Taxes and Retirement --- ### [Missouri Unemployment Benefits: 2027 Outlook, Current 2026 Amount $320/Week for 20 Weeks](https://savingtoinvest.com/missouri-unemployment-benefits/) **Published:** June 20, 2026 **Author:** Andy **Content:** ### Key Takeaways - Missouri's maximum weekly unemployment benefit is $320 in 2026, and the state caps benefits at just 20 weeks — significantly shorter than the 26-week standard in most states. - The combination of a low benefit cap and short duration makes Missouri one of the more restrictive UI programs in the Midwest — plan accordingly if you're facing unemployment here. - Missouri's partial UI formula allows you to earn wages up to 20% of your WBA before benefits start to reduce. - Missouri taxes unemployment benefits as ordinary state income at a flat rate of 4.7% for 2026; federal taxes also apply. - Beyond UI, unemployed Missourians can access MO HealthNet (Medicaid, expanded), SNAP, LIHEAP energy assistance, CHIP, and career services through Missouri's Job Centers. Missouri’s unemployment insurance program — managed by the [Division of Employment Security (DES)](https://labor.mo.gov/des) — has a maximum of $320 per week, capped at just 20 weeks. Both numbers are locked in for 2026; I haven’t seen a legislative proposal that would change either for 2027. Missouri sits alongside Arkansas, Kansas, and North Carolina as states that have reduced their standard benefit duration below the traditional 26 weeks. For comparison with other states, see [SavingToInvest’s unemployment benefits state-by-state breakdown](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/). Covered in this Article: [Toggle](#) - [2026 Benefit Amounts and Duration](https://savingtoinvest.com/?p=71734/#2026_Benefit_Amounts_and_Duration) - [Who Qualifies](https://savingtoinvest.com/?p=71734/#Who_Qualifies) - [Partial Unemployment for Part-Time Workers and Reduced Hours](https://savingtoinvest.com/?p=71734/#Partial_Unemployment_for_Part-Time_Workers_and_Reduced_Hours) - [Tax Implications of Missouri Unemployment Benefits](https://savingtoinvest.com/?p=71734/#Tax_Implications_of_Missouri_Unemployment_Benefits) - [How to File](https://savingtoinvest.com/?p=71734/#How_to_File) - [Other Benefits Available to Unemployed Missouri Workers](https://savingtoinvest.com/?p=71734/#Other_Benefits_Available_to_Unemployed_Missouri_Workers) - [Looking Ahead: 2027 Outlook](https://savingtoinvest.com/?p=71734/#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](https://savingtoinvest.com/?p=71734/#Common_Issues_to_Watch_Out_For) ## 2026 Benefit Amounts and Duration Missouri’s **maximum weekly benefit is $320** for 2026. The minimum is $45. Benefits last up to **20 weeks** — the standard hard cap regardless of economic conditions (though extended benefits may be available during federally declared periods of high unemployment). Your Weekly Benefit Amount is calculated at approximately **4% of your total base period wages**, divided by the number of base period quarters, subject to the state cap. The base period is the first four of the last five completed calendar quarters. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates as Missouri’s unemployment rules evolve.* ## Who Qualifies To receive Missouri UI benefits, you must: - Have earned wages in **at least two quarters** of the base period - Have wages in your **highest quarter of at least $1,500** - Have total base period wages of at least **1.5× your highest quarter wages** - Have lost your job through no fault of your own (layoff, reduction in force, business closure) - Be physically able and available to work, and actively seeking new employment Missouri requires three work-search contacts per week and registration at jobs.mo.gov. Weekly certifications are submitted online or by phone. Workers fired for misconduct or who quit without good cause are ineligible. Missouri recognizes good cause for domestic violence, documented medical conditions, or substantial employer-imposed changes to job terms. ## Partial Unemployment for Part-Time Workers and Reduced Hours Missouri’s partial UI formula uses a **20% of WBA earnings disregard**: wages up to 20% of your weekly benefit are ignored before benefits start to reduce. Wages above that threshold reduce your benefit dollar-for-dollar. At the maximum benefit of $320, you can earn up to $64 per week without any reduction. Earn $150 and your benefit is reduced by $86, giving you $234 for that week. Workers whose employer reduced their hours — but didn’t fully lay them off — can file for partial UI as long as they remain available for full-time work. The 20-week total limit applies to both full and partial benefit weeks combined. ## Tax Implications of Missouri Unemployment Benefits Missouri taxes unemployment compensation as ordinary income at the **state level**. Missouri uses a **flat income tax rate of 4.7%** for 2026 (reduced from graduated rates in prior years under the state’s tax reform). All UI recipients pay this rate. At the **federal level**, UI is taxable as ordinary income. You’ll receive Form 1099-G from DES each January — my [IRS refund schedule guide](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) and [tax filing dates guide](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) cover the key dates. You can elect both federal and Missouri state withholding from your weekly payments through the UInteract portal. ## How to File File your claim at **uinteract.labor.mo.gov** or call 800-320-2519. You’ll need your Social Security number, work history for the past 18 months, and bank account details for direct deposit. There is a **one-week waiting period** before benefits start. Certify weekly through UInteract. Report wages and three job-search contacts each week. If denied, you have **10 days** from the mailing date of the determination to appeal. ## Other Benefits Available to Unemployed Missouri Workers **MO HealthNet (Medicaid)**: Missouri expanded Medicaid in 2021 through a voter initiative. Adults earning up to 138% of the federal poverty level (about $20,120 for a single person in 2026) can now qualify for comprehensive coverage. Apply at mydss.mo.gov. **MO HealthNet for Kids (CHIP)**: Missouri’s CHIP program covers children in households earning up to 300% of the federal poverty level. Apply through the Department of Social Services at mydss.mo.gov. **SNAP (Food Assistance)**: Missouri’s SNAP program provides monthly food benefits via EBT card — see my [full Missouri SNAP guide](https://savingtoinvest.com/missouri-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) for current amounts and deposit dates. Income limits are at 130% of the federal poverty level. Apply at mydss.mo.gov or your local Family Support Division office. **LIHEAP (Low Income Home Energy Assistance)**: Missouri’s LIHEAP helps income-eligible households pay heating and cooling bills. Apply through your local Community Action Agency — find yours at communityaction.org. **Missouri Job Centers**: Missouri’s Job Center network offers free job search assistance, resume help, career counseling, and access to WIOA training grants. Participating in Job Center services can count toward your work-search requirement. Workers displaced from mass layoffs may qualify for Trade Adjustment Assistance. ## Looking Ahead: 2027 Outlook Missouri’s 20-week cap was cut from 26 weeks back in 2011, and legislative efforts to restore the standard duration have periodically come up without succeeding — I haven’t seen a proposal for 2027 that changes that outlook. The $320 maximum has also been essentially flat; nothing scheduled would raise it. With only 20 weeks of coverage available, engaging with career services and job training early in your benefit period matters more here than in most states, since you have less runway before benefits end. I’ll update this page if either the duration or the maximum benefit changes. ## Common Issues to Watch Out For **Running out of runway before finding work.** Missouri’s 20-week cap is one of the shortest in the country, and the clock doesn’t stop for partial-benefit weeks either — they count against the same 20-week total. Start using Missouri Job Centers and training resources early rather than waiting. **Not documenting your three weekly work-search contacts.** DES can ask you to produce records of your job search retroactively. Save the company name, date, and how you applied for every contact as you go. **Missing the 10-day appeal window.** If you’re denied, you have just 10 days from the mailing date of the determination to appeal — one of the shorter windows in the country. Don’t wait to gather every document first. --- Frequently Asked Questions QWhat is Missouri's maximum weekly unemployment benefit for 2026? AThe maximum is $320 per week, and benefits last up to 20 weeks — shorter than most states. Your WBA is calculated at approximately 4% of your total base period wages divided by base period quarters, up to the cap. QWhy does Missouri only give 20 weeks of unemployment benefits? AMissouri reduced its maximum duration from 26 weeks to a lower figure in 2011. Unlike Kansas and Arkansas (16 weeks), Missouri settled at 20 weeks. There's no rate-based sliding scale — 20 weeks is the hard cap regardless of economic conditions. QDoes Missouri tax unemployment benefits? AYes. Missouri taxes UI at a flat 4.7% state rate for 2026. Federal taxes also apply. Elect both federal and state withholding through UInteract at uinteract.labor.mo.gov. QHow does partial unemployment work in Missouri? AMissouri disregards wages up to 20% of your WBA. Wages above that threshold reduce your benefit dollar-for-dollar. The 20-week total limit applies to both full and partial benefit weeks combined, so plan accordingly. QDoes Missouri have Medicaid for unemployed adults? AYes — Missouri expanded Medicaid (MO HealthNet) in 2021. Adults up to 138% of the federal poverty level can qualify for comprehensive coverage. Apply at mydss.mo.gov. QWhat other assistance is available to unemployed Missouri workers? AApply for MO HealthNet Medicaid, SNAP, and CHIP at mydss.mo.gov. Apply for LIHEAP through your local Community Action Agency. Visit Missouri Job Centers for free career services and WIOA training grants. Given Missouri's 20-week limit, start job training early. **Categories:** Taxes and Retirement --- ### [Mississippi Unemployment Benefits: 2027 Outlook, Current 2026 Amount Just $235/Week](https://savingtoinvest.com/mississippi-unemployment-benefits/) **Published:** June 20, 2026 **Author:** Andy **Content:** ### Key Takeaways - Mississippi's maximum weekly unemployment benefit is $235 in 2026 — the lowest maximum in the United States by any measure, providing less than $1,000 per month in income replacement. - Benefits last up to 26 weeks, which is the standard duration — but $235 per week barely covers basic necessities in most Mississippi cities. - Mississippi's partial UI formula allows you to earn wages up to 40% of your WBA ($94/week at maximum) before benefits start to reduce. - Mississippi taxes unemployment benefits at the state level, though the state's income tax rate is very low; federal taxes also apply. - Beyond UI, unemployed Mississippians can access Medicaid (with restrictions — Mississippi has NOT expanded Medicaid under the ACA), SNAP, LIHEAP energy assistance, and CHIP for children. Mississippi’s unemployment insurance program — managed by the [Mississippi Department of Employment Security (MDES)](https://mdes.ms.gov/) — provides just $235 per week. That’s the lowest maximum weekly unemployment benefit in the country, and it’s held that spot for years — I haven’t seen a legislative proposal that would raise it for 2027. For context, $235 per week is $1,020 per month — less than the average utility bill plus rent in most Mississippi cities. Knowing what other programs are available is critical. See all state comparisons at [SavingToInvest’s unemployment benefits guide](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/). Covered in this Article: [Toggle](#) - [2026 Benefit Amounts and Duration](https://savingtoinvest.com/?p=71733/#2026_Benefit_Amounts_and_Duration) - [Who Qualifies](https://savingtoinvest.com/?p=71733/#Who_Qualifies) - [Partial Unemployment for Part-Time Workers and Reduced Hours](https://savingtoinvest.com/?p=71733/#Partial_Unemployment_for_Part-Time_Workers_and_Reduced_Hours) - [Tax Implications of Mississippi Unemployment Benefits](https://savingtoinvest.com/?p=71733/#Tax_Implications_of_Mississippi_Unemployment_Benefits) - [How to File](https://savingtoinvest.com/?p=71733/#How_to_File) - [Other Benefits Available to Unemployed Mississippi Workers](https://savingtoinvest.com/?p=71733/#Other_Benefits_Available_to_Unemployed_Mississippi_Workers) - [Looking Ahead: 2027 Outlook](https://savingtoinvest.com/?p=71733/#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](https://savingtoinvest.com/?p=71733/#Common_Issues_to_Watch_Out_For) ## 2026 Benefit Amounts and Duration Mississippi’s **maximum weekly benefit is $235** for 2026. The minimum is $30. Benefits last up to **26 weeks**. Your Weekly Benefit Amount is calculated at approximately **1/26th of your wages in your highest base period quarter**, subject to the very low state cap. The base period is the first four of the last five completed calendar quarters before filing. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates as Mississippi’s unemployment rules evolve.* ## Who Qualifies To receive Mississippi UI benefits, you must: - Have earned wages in **at least two quarters** of the base period - Have wages in your **highest quarter of at least $780** - Have total base period wages of at least **40× your WBA** - Have lost your job through no fault of your own (layoff, position eliminated, plant closure) - Be physically able and available to work, and actively seeking new employment Mississippi requires claimants to make three work-search contacts per week and register with the Mississippi WIN Job Centers. Weekly certifications are submitted through the MDES online system or by phone. Workers fired for misconduct or who quit without good cause are generally ineligible. Mississippi recognizes domestic violence and medically documented situations as potential good cause circumstances. ## Partial Unemployment for Part-Time Workers and Reduced Hours Mississippi’s partial UI formula uses a **40% of WBA earnings disregard**: wages up to 40% of your weekly benefit don’t reduce your payment. Wages above that 40% threshold are deducted dollar-for-dollar. At the maximum benefit of $235, you can earn up to $94 per week without any impact. Earn $150 and your benefit is reduced by $56 ($150 − $94), giving you $179 for that week. The 40% disregard is reasonable in percentage terms, but the low base benefit means the actual dollar disregard is tiny. Workers whose employer cut their hours can file for partial UI, as long as they remain available for full-time work. Report all wages when certifying weekly. ## Tax Implications of Mississippi Unemployment Benefits Mississippi recently simplified its income tax system. For 2026, Mississippi has a **flat income tax rate of 4%** (down from a prior graduated structure, with further reductions scheduled). This rate applies to UI benefits as ordinary income. At the **federal level**, UI is taxable as ordinary income. You’ll receive Form 1099-G from MDES each January — my [IRS refund schedule guide](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) and [tax filing dates guide](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) cover the key dates. You can elect federal withholding at 10% and Mississippi state withholding from your weekly payments through the MDES online portal. Given the low benefit amount, many claimants’ total annual income will fall near the standard deduction level, but withholding is still advisable. ## How to File File your claim at **mdes.ms.gov** or call 888-844-3577. You’ll need your Social Security number, work history for the past 18 months, and bank account details for direct deposit or the MDES debit card. There is a **one-week waiting period** before benefits start. Certify weekly through the MDES portal or by phone. Report work-search contacts and any wages earned. If your claim is denied, you have **14 days** from the mailing date of the determination to appeal. ## Other Benefits Available to Unemployed Mississippi Workers **Mississippi Medicaid**: Mississippi has NOT expanded Medicaid under the ACA as of 2026 — it is one of the few remaining states that has not expanded. Mississippi Medicaid is limited to specific categories: children, pregnant women, the elderly, disabled individuals, and parents meeting very strict income criteria (often below 27% of the federal poverty level for parents). Most unemployed single adults without qualifying children will not be eligible. If you don’t qualify for Medicaid, check [healthcare.gov](https://healthcare.gov) immediately — losing your job is a Special Enrollment Period qualifying event for ACA marketplace plans, and premium tax credits are available based on your income. **Children’s Medicaid / CHIP (ALL Kids / CHIP)**: Mississippi’s CHIP program covers children in households earning up to 209% of the federal poverty level. Apply at medicaid.ms.gov or through the Division of Medicaid. **SNAP (Food Assistance)**: Mississippi’s SNAP program provides monthly food assistance via EBT card — see my [full Mississippi SNAP guide](https://savingtoinvest.com/mississippi-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) for current amounts and deposit dates. Given the extremely low UI benefit, SNAP is particularly important for unemployed Mississippi workers. Income limits are at 130% of the federal poverty level. Apply at mdhs.ms.gov. **LIHEAP (Low Income Home Energy Assistance)**: Mississippi’s LIHEAP helps with heating and cooling costs. Given the state’s hot summers, the cooling assistance component is especially valuable. Apply through your local Community Action Agency or at mdhs.ms.gov. **Mississippi WIN Job Centers**: Mississippi’s WIN Job Centers offer free job search assistance, resume help, and access to WIOA-funded training programs. Given the very low UI benefit, engaging with training programs early is especially important. **Mississippi Community Action Agencies**: Local Community Action Agencies throughout Mississippi provide emergency rental assistance, food pantries, utility help, and other safety net services beyond what the state formally administers. ## Looking Ahead: 2027 Outlook Mississippi’s $235 maximum has been the lowest in the country for years, and periodic efforts to raise the cap haven’t succeeded — I haven’t seen a proposal for 2027 that changes that outlook. The state’s decision not to expand Medicaid remains the bigger structural gap for unemployed workers here, and there’s no indication that’s changing either. Worth monitoring at legislature.ms.gov if either the benefit cap or Medicaid expansion comes up in the next session — but nothing is currently scheduled for a vote. I’ll update this page if either changes. ## Common Issues to Watch Out For **Not documenting weekly work-search contacts.** Mississippi requires three work-search contacts a week, and MDES can ask you to document them retroactively. Save the company name, date, and how you applied for every contact as you go. **Underestimating how little the partial UI disregard is worth.** Mississippi’s 40% earnings disregard sounds reasonable, but with a $235 maximum, the actual dollar amount is tiny — about $94 at the cap. Don’t assume part-time work leaves your full benefit untouched; run the math first. **Missing the 14-day appeal window.** If you’re denied, you have 14 days from the mailing date to appeal — and given how low Mississippi’s benefit already is, losing weeks to a missed deadline is costlier here than in higher-benefit states. File the appeal first, then assemble your evidence. --- Frequently Asked Questions QWhat is Mississippi's maximum weekly unemployment benefit for 2026? AThe maximum is $235 per week — the lowest cap in the entire country. Benefits last up to 26 weeks, providing a maximum total of about $6,110 over the benefit period. QDoes Mississippi tax unemployment benefits? AYes. Mississippi taxes UI as ordinary income at a flat 4% state rate for 2026 (down from higher graduated rates in prior years). Federal income tax also applies. Elect withholding through mdes.ms.gov. QDoes Mississippi have Medicaid for unemployed adults? ANo — Mississippi has not expanded Medicaid under the ACA. Mississippi Medicaid is limited to specific categories (children, pregnant women, elderly, disabled, and very low-income parents). Most unemployed single adults won't qualify. Check healthcare.gov for marketplace plans with premium tax credits. QHow does partial unemployment work in Mississippi? AMississippi's 40% disregard means you can earn wages up to 40% of your WBA ($94 at the maximum $235) without any benefit reduction. Wages above that threshold reduce your payment dollar-for-dollar. QWhat food assistance is available to unemployed Mississippi workers? ASNAP (Supplemental Nutrition Assistance Program) is available through mdhs.ms.gov for households at or below 130% of the federal poverty level. Given the very low UI maximum, many claimants will qualify. Local food banks and Community Action Agencies also provide emergency food assistance. QWhat other assistance is available to unemployed Mississippi workers? AApply for SNAP food assistance and children's Medicaid/CHIP at mdhs.ms.gov. Check healthcare.gov for ACA marketplace health coverage (job loss is a qualifying event). Apply for LIHEAP through your local Community Action Agency. Visit Mississippi WIN Job Centers for free career services and WIOA training grants. **Categories:** Taxes and Retirement --- ### [Minnesota Unemployment Benefits: 2027 Outlook, Current 2026 Amount Up to $914/Week](https://savingtoinvest.com/minnesota-unemployment-benefits/) **Published:** December 13, 2020 **Author:** Andy **Content:** ### Key Takeaways - Minnesota's maximum weekly unemployment benefit is $914 in 2026, up from $857, following the annual adjustment based on the statewide average weekly wage. - Benefits last up to 26 weeks under standard conditions. - Minnesota's partial UI formula allows you to earn up to 55% of your WBA per week before your benefit is reduced; above that, earnings are deducted dollar-for-dollar. - Minnesota taxes unemployment benefits as ordinary state income at graduated rates up to 9.85%; federal taxes also apply. - Beyond UI, unemployed Minnesotans can access Medical Assistance (Medicaid — expanded), MinnesotaCare, SNAP, energy assistance through LIHEAP, and career services through WorkForce Center offices statewide. Minnesota’s unemployment insurance program — managed by the [Department of Employment and Economic Development (DEED)](https://mn.gov/deed/) — increased its maximum weekly benefit to $914 in 2026, up from $857 in 2025. Minnesota sets its maximum at 50% of the statewide average weekly wage, adjusted annually, so another increase for 2027 is likely — DEED typically announces the new figure in mid-to-late 2026. The state’s strong labor market and high average wages push it consistently into the top tier for UI benefits nationally. See how Minnesota compares at [SavingToInvest’s unemployment benefits by state guide](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/). Covered in this Article: [Toggle](#) - [2026 Benefit Amounts and Duration](#2026_Benefit_Amounts_and_Duration) - [Who Qualifies](#Who_Qualifies) - [Partial Unemployment for Part-Time Workers and Reduced Hours](#Partial_Unemployment_for_Part-Time_Workers_and_Reduced_Hours) - [Tax Implications of Minnesota Unemployment Benefits](#Tax_Implications_of_Minnesota_Unemployment_Benefits) - [How to File](#How_to_File) - [Other Benefits Available to Unemployed Minnesota Workers](#Other_Benefits_Available_to_Unemployed_Minnesota_Workers) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## 2026 Benefit Amounts and Duration Minnesota’s **maximum weekly benefit is $914** for 2026. The minimum is $29 (a very low floor). Benefits last up to **26 weeks**. Your Weekly Benefit Amount is calculated at approximately **50% of your average weekly wage** during the base period, subject to the $914 cap. The base period is the first four of the last five completed calendar quarters before filing. Things can change — I’ll update this page when the 2027 rate is announced. [Subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## Who Qualifies To receive Minnesota UI benefits, you must: - Have earned wages in covered employment during the base period - Have wages in your **highest quarter of at least $1,000** - Have total base period wages of at least **$1,000 plus an additional 5.3% of your high-quarter wages** times 8 (complex formula — DEED calculates this automatically) - Have lost your job through no fault of your own (layoff, reduction in force, business closure) - Be physically able and available for suitable work, and actively seeking employment Minnesota requires claimants to contact at least **three employers per week** and document those contacts. Register with Minnesota’s job bank at mn.gov/deed/job-seekers. Certify weekly through the DEED online portal or by phone. Workers fired for misconduct or who quit without good cause are generally ineligible. Minnesota recognizes good cause for domestic abuse, medical conditions certified by a physician, and changes to material employment terms. ## Partial Unemployment for Part-Time Workers and Reduced Hours Minnesota’s partial UI formula: you can earn up to **55% of your WBA** per week without any benefit reduction. Earnings above that threshold are deducted dollar-for-dollar. For example, if your WBA is $800 (55% = $440) and you earn $500: - Disregard: $440 - Deductible earnings: $500 − $440 = $60 - Adjusted WBA: $800 − $60 = $740 This is one of the more generous partial-work formulas in the country — you can take on significant part-time work while still collecting the bulk of your benefit. Report all gross earnings when certifying each week. ## Tax Implications of Minnesota Unemployment Benefits Minnesota taxes unemployment compensation as ordinary income at graduated state rates from **5.35% to 9.85%** in 2026. Most UI recipients will pay 6.8%–7.85% on their benefits. At $914/week for 26 weeks, the top marginal state tax could reach roughly $1,200–$2,000 over a full benefit period, depending on total income. At the **federal level**, UI is taxable as ordinary income. You’ll receive Form 1099-G from DEED by January 31 — my [IRS refund schedule guide](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) and [tax filing dates guide](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) cover the key dates. You can elect federal and state withholding when filing your claim or any time through the DEED online portal. Withholding is strongly recommended given Minnesota’s higher tax rates. ## How to File File your claim at **uimn.org** or call 651-296-3644 (Twin Cities) or 877-898-9090 (Greater Minnesota). You’ll need your Social Security number, work history for the past 18 months, and bank account details for direct deposit. There is a **one-week waiting period** before benefits start. After approval, certify every two weeks through the UIMN portal — report all earnings and employer contacts. If your claim is denied, you have **20 days** from the mailing date to file an appeal with the ULP (Unemployment Law Judge) office. ## Other Benefits Available to Unemployed Minnesota Workers **Medical Assistance (Medicaid)**: Minnesota expanded Medicaid in 2014. Adults earning up to 138% of the federal poverty level qualify for free comprehensive coverage through Medical Assistance. Apply at mnbenefits.mn.gov. **MinnesotaCare**: For adults who earn too much for Medicaid but can’t afford private insurance, MinnesotaCare offers low-cost coverage on a sliding scale. Apply through MNsure at mn.gov/mnsure. **SNAP (Food Support)**: Minnesota’s Food Support program provides monthly EBT benefits — see my [full Minnesota SNAP guide](https://savingtoinvest.com/minnesota-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) for current amounts and deposit dates. Apply at mnbenefits.mn.gov or your county human services office. **Energy Assistance Program (EAP)**: Minnesota’s EAP helps with heating costs through LIHEAP funding. Apply in the fall for heating season. Contact your local community action agency or visit mn.gov/commerce for a provider list. **WorkForce Center Offices**: Minnesota’s WorkForce Centers provide free employment services including job placement, skills training, resume help, and access to WIOA training grants. Find your nearest location at mn.gov/deed. ## Looking Ahead: 2027 Outlook Minnesota’s benefit maximum adjusts every year based on 50% of the statewide average weekly wage — typically announced in mid-to-late 2026 for the 2027 benefit year. Given the state’s strong wage growth, another increase is likely, though I don’t have the exact figure until DEED confirms it. Minnesota also passed significant UI trust fund legislation in recent sessions, and the system is well-funded — which supports sustained benefit levels rather than the kind of cuts some less-funded states have had to consider. I’ll update this page when the 2027 maximum is announced. ## Common Issues to Watch Out For **Not documenting your three weekly employer contacts.** DEED can ask you to produce records of your work search retroactively. Save the company name, date, and how you applied for every contact as you go — a missing record is one of the more common reasons a certification gets questioned after the fact. **Missing a biweekly certification.** Minnesota certifies every two weeks rather than weekly like most states — easy to lose track of if you’re used to a different rhythm. Set a recurring reminder rather than relying on memory. **Missing the 20-day appeal window.** If you’re denied, you have 20 days from the mailing date to appeal to the Unemployment Law Judge office. Don’t wait to gather every document first — file the appeal, then assemble your evidence. --- Frequently Asked Questions QWhat is Minnesota's maximum weekly unemployment benefit for 2026? A$914 per week, up from $857 in 2025. Benefits last up to 26 weeks. Minnesota sets its maximum at 50% of the statewide average weekly wage, adjusted annually. QDoes Minnesota tax unemployment benefits? AYes. Minnesota taxes UI at graduated state rates from 5.35% to 9.85%. Federal taxes also apply. You can elect withholding from your UIMN weekly payments to avoid a tax bill. QHow does partial unemployment work in Minnesota? AMinnesota allows you to earn up to 55% of your WBA per week with no benefit reduction. Earnings above that threshold reduce your benefit dollar-for-dollar. Report all gross earnings when certifying. QDoes Minnesota have Medicaid for unemployed adults? AYes — Minnesota expanded Medicaid in 2014 through Medical Assistance. Adults earning up to 138% of the federal poverty level qualify for free comprehensive coverage. Apply at mnbenefits.mn.gov. QWhat is Minnesota's work-search requirement? AThree employer contacts per week. You must document each contact in the UIMN portal when certifying. Register with Minnesota's job bank (mn.gov/deed/job-seekers) to help meet this requirement. **Categories:** Government Rebates and Payments --- ### [Michigan Unemployment Benefits in 2026–2027: $530/Week for 26 Weeks, Rising to $614 in January](https://savingtoinvest.com/michigan-unemployment-benefits/) **Published:** August 2, 2020 **Author:** Andy **Content:** ### Key Takeaways - Michigan's maximum weekly unemployment benefit rose to $530 on January 1, 2026 (from $446), plus $19.33 per dependent for up to five dependents - and the max rises again to $614 on January 1, 2027. - Benefits now last up to 26 weeks, restored from Michigan's old 20-week cap under the law that took effect in April 2025. - Claims filed before January 1, 2026 keep the weekly rate set when they were filed - the new cap applies to new claims only. - Michigan's partial UI disregard is the greater of $6 per day worked or 1/5 of your WBA; earnings above that reduce benefits dollar-for-dollar. - Michigan taxes UI at its flat 4.05% state rate, and you now need three employer contacts per week (up from one) to stay eligible. Michigan’s unemployment insurance program — managed by the [Unemployment Insurance Agency (UIA)](https://www.michigan.gov/leo/bureaus-agencies/uia) — saw its first significant benefit increase in years starting January 1, 2026. The maximum weekly benefit rose from $446 to **$530** per claim filed in 2026, an $84/week improvement following SB 40 signed by Governor Whitmer. Michigan also increased the per-dependent supplement from $12.66 to **$19.33** (for up to five dependents). Just as important: benefits now last up to **26 weeks**, after the same law restored Michigan’s duration from the old 20-week cap that had made a longer job search especially hard to plan around. Covered in this Article: [Toggle](#) - [2026 Benefit Amounts and Duration](#2026_Benefit_Amounts_and_Duration) - [Who Qualifies](#Who_Qualifies) - [Partial Unemployment for Part-Time Workers and Reduced Hours](#Partial_Unemployment_for_Part-Time_Workers_and_Reduced_Hours) - [Tax Implications of Michigan Unemployment Benefits](#Tax_Implications_of_Michigan_Unemployment_Benefits) - [How to File](#How_to_File) - [Other Benefits Available to Unemployed Michigan Workers](#Other_Benefits_Available_to_Unemployed_Michigan_Workers) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## 2026 Benefit Amounts and Duration Michigan’s **maximum weekly benefit is $530** for claims filed in 2026. The minimum is $150. Benefits last up to **26 weeks**. Michigan also provides a **dependent supplement**: $19.33 per dependent per week for up to five dependents. This can add up to $96.65/week for families with five qualifying dependents. Your Weekly Benefit Amount is calculated at approximately **43% of your average weekly wage** during the base period, subject to the cap. The base period is the first four of the last five completed calendar quarters before filing. Note: claims filed before January 1, 2026 remain at the prior $446 maximum. The $530 rate applies to new claims filed on or after January 1, 2026. Here’s the full phase-in schedule under SB 40, per the [official UIA announcement](https://www.michigan.gov/leo/news/2025/12/18/unemployment-weekly-benefit-rate-increases-january-1-2026): EffectiveMax Weekly BenefitPer DependentMax WeeksBefore April 2025$362$620April 2, 2025$446$12.6626January 1, 2026$530$19.3326January 1, 2027$614$26262028 and beyondIndexed to CPI annuallyIndexed26 See how **Michigan UI benefits** compare to other states at our [national unemployment benefits comparison](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/) table and [Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get the latest updates as Michigan’s benefit rules evolve. ## Who Qualifies To receive Michigan UI benefits, you must: - Have earned wages in **at least two quarters** of the base period - Have wages in your **highest quarter of at least $4,716** - Have total base period wages of at least **1.5× your high-quarter wages** - Have lost your job through no fault of your own (layoff, reduction in force, business closure) - Be physically able and available for full-time work, and actively seeking employment Michigan requires claimants to make at least **three employer contacts per week** starting in 2026 (increased from one). Register with Pure Michigan Talent Connect. Certify weekly through the MiWAM online system or by phone. Workers fired for misconduct or who quit without good cause are generally ineligible. Michigan recognizes domestic violence, medical conditions, and substantial employer-imposed changes to terms of employment as good cause. ## Partial Unemployment for Part-Time Workers and Reduced Hours Michigan’s partial UI formula: the earnings disregard is the **greater of $6 per day worked or 1/5 of your WBA** per week. Earnings above that threshold reduce your benefit dollar-for-dollar. For example, if your WBA is $400 (1/5 = $80) and you work 3 days earning $180: - Disregard: greater of $6×3=$18 or 1/5×$400=$80 → use $80 - Deductible earnings: $180 − $80 = $100 - Adjusted WBA: $400 − $100 = $300 Workers on reduced hours can also file for partial benefits. All earnings must be reported when certifying weekly through MiWAM. ## Tax Implications of Michigan Unemployment Benefits Michigan taxes unemployment compensation as ordinary income at the **flat 4.05% state rate** for 2026. At $530/week for a full 26 weeks, that’s roughly $558 in total state tax at the maximum. At the **federal level**, UI is taxable as ordinary income. You’ll receive Form 1099-G from UIA by January 31 — my [IRS refund schedule guide](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) and [tax filing dates guide](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) cover the key dates. You can elect federal and Michigan state withholding from your weekly payments when certifying. Withholding is recommended to avoid a tax bill. ## How to File File your claim at **michigan.gov/uia** or call 866-500-0017. You’ll need your Social Security number, complete work history for the past 18 months, and bank account details for direct deposit. There is a **one-week waiting period** before benefits start. After approval, certify weekly through MiWAM — report all earnings and employer contacts each week. If your claim is denied, you have **30 days** from the mailing date to file an appeal with the Michigan Administrative Hearing System. ## Other Benefits Available to Unemployed Michigan Workers **Medicaid**: Michigan expanded Medicaid in 2014 under the Healthy Michigan Plan. Adults earning up to 138% of the federal poverty level qualify for free coverage. Apply at michigan.gov/mdhhs. **MIChild (CHIP)**: Michigan’s MIChild program provides low-cost health coverage for children in households up to 212% of the federal poverty level. Apply through MDHHS. **SNAP (Food Assistance)**: Michigan’s Food Assistance Program (FAP) provides monthly EBT food benefits — see my [full Michigan SNAP guide](https://savingtoinvest.com/michigan-snap-food-stamp-program-latest-updates-and-news/) for current amounts and deposit dates. Apply at michigan.gov/mdhhs or a local MDHHS office. Income limits vary by household size. **LIHEAP / MEAP**: Michigan’s Low-Income Energy Assistance Program helps with heating costs. Contact your local community action agency or apply through MDHHS (michigan.gov/mdhhs). **Michigan Works! Centers**: Michigan Works! offers free job search assistance, skills training, resume help, and access to WIOA training grants. Participating in Michigan Works! activities helps meet your weekly work-search requirements. ## Looking Ahead: 2027 Outlook The next step is already locked in: on **January 1, 2027**, Michigan’s maximum weekly benefit rises to **$614** and the per-dependent amount increases to **$26**. From 2028 onward, both adjust automatically each year with the Consumer Price Index — so Michigan’s cap will no longer stagnate for a decade the way $362 did. If you’re weighing when to file near year-end, remember the rate lock: a claim filed in late December 2026 uses the $530 cap for its entire benefit year, while one filed in January 2027 uses $614. And don’t forget the tougher work-search rule — three documented employer contacts per week — which trips up more claimants than the money rules do. I’ll update this page when the UIA confirms the 2027 rollout details. ## Common Issues to Watch Out For **Missing the tougher work-search rule.** Michigan raised its work-search requirement to three employer contacts a week in 2026 (up from one), and UIA can ask you to document them. This trips up more claimants than the money rules do — keep a log of the company, date, and how you applied for every contact. **Filing right around the January rate change.** Because Michigan’s maximum resets every January 1st, a claim filed in late December locks in the lower prior-year rate for its entire benefit year, while one filed just after January 1st gets the new rate. If your layoff timing is flexible, it’s worth knowing which side of the date you land on. **Missing the 30-day appeal window.** If you’re denied, you have 30 days from the mailing date to appeal to the Michigan Administrative Hearing System — longer than many states, but don’t wait to gather every document first. --- Frequently Asked Questions QWhat is the maximum weekly unemployment benefit in Michigan in 2026? A$530 per week for new claims filed on or after January 1, 2026, plus $19.33 per dependent for up to five dependents. The max rises to $614 on January 1, 2027, and will be indexed to inflation starting in 2028. QHow many weeks of unemployment can I get in Michigan? AUp to 26 weeks. Michigan restored the 26-week standard in April 2025 after years of a shorter 20-week maximum. QIf I filed my claim in 2025, do I get the new $530 rate? ANo. Your weekly rate is set when you file. Claims filed before January 1, 2026 remain at the prior $446 maximum - the higher cap applies to new claims. QHow does partial unemployment work in Michigan? AThe earnings disregard is the greater of $6 per day worked or 1/5 of your WBA. Earnings above that reduce your benefit dollar-for-dollar. Report all earnings when certifying through MiWAM. QAre Michigan UI benefits taxable? AYes. Michigan taxes UI at its flat 4.05% state rate for 2026, and federal income tax also applies. You'll receive a 1099-G from the UIA by January 31, and you can elect withholding when certifying. QWhat are Michigan's work-search requirements in 2026? AYou must make at least three employer contacts per week (up from one previously), register with Pure Michigan Talent Connect, and certify weekly through MiWAM. Document your contacts carefully - this is a common reason benefits get denied. **Categories:** unemployment --- ### [Massachusetts Unemployment Benefits: 2027 Outlook, Current 2026 Amount Up to $1,105/Week for 30 Weeks](https://savingtoinvest.com/massachusetts-unemployment-benefits/) **Published:** May 6, 2020 **Author:** Andy **Content:** ### Key Takeaways - Massachusetts' maximum weekly unemployment benefit is $1,105 in 2026 (effective October 5, 2025) — one of the two highest in the country alongside Washington State. - Benefits last up to 30 weeks, four weeks more than the 26-week standard in most states. - Massachusetts' partial UI formula uses a 1/3 of WBA earnings disregard — meaning you can earn up to roughly $368 per week before any benefit reduction kicks in. - Massachusetts taxes unemployment benefits as ordinary state income at the flat 5% rate; federal taxes also apply. - Beyond UI, unemployed Massachusetts residents can access MassHealth (Medicaid — expanded), CHIP, SNAP, LIHEAP energy assistance, and career services through MassHire Career Centers statewide. Massachusetts’ unemployment insurance program — managed by the [Department of Unemployment Assistance (DUA)](https://www.mass.gov/orgs/department-of-unemployment-assistance) — provides up to $1,105 per week, the second-highest maximum in the country. Massachusetts sets its maximum benefit each October using a formula tied to the state average weekly wage: 57.5% of the prior year’s average weekly wage, which rose to $1,922.48 for 2025. The $1,105 cap applies through October 2026, when the next adjustment — effectively the 2027 rate — is scheduled. Compare all states at [SavingToInvest’s unemployment benefits by state guide](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/). Covered in this Article: [Toggle](#) - [2026 Benefit Amounts and Duration](#2026_Benefit_Amounts_and_Duration) - [Who Qualifies](#Who_Qualifies) - [Partial Unemployment for Part-Time Workers and Reduced Hours](#Partial_Unemployment_for_Part-Time_Workers_and_Reduced_Hours) - [Tax Implications of Massachusetts Unemployment Benefits](#Tax_Implications_of_Massachusetts_Unemployment_Benefits) - [How to File](#How_to_File) - [Other Benefits Available to Unemployed Massachusetts Workers](#Other_Benefits_Available_to_Unemployed_Massachusetts_Workers) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## 2026 Benefit Amounts and Duration Massachusetts’ **maximum weekly benefit is $1,105** (effective October 5, 2025). The minimum is $60. Benefits last up to **30 weeks** — four weeks more than the 26-week standard in most states. Your Weekly Benefit Amount is calculated at **approximately 50% of your average weekly wage** during the base period, subject to the $1,105 cap. The base period is the first four of the last five completed calendar quarters before filing. Massachusetts also provides a **dependent allowance**: an additional $25 per week per qualifying dependent (or 5% of WBA, whichever is greater), up to five dependents. At the max benefit, this adds up to $125/week for a full household, though the total benefit cannot exceed the state maximum. Things can shift quickly with benefit formulas. I’ll update this page when the October 2026 rate is announced — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## Who Qualifies To receive Massachusetts UI benefits, you must: - Have earned wages in **at least two quarters** of the base period - Have wages in your **highest quarter of at least $5,700** - Have total base period wages of at least **30× your WBA** - Have lost your job through no fault of your own (layoff, reduction in force, business closure) - Be physically able and available to work, and actively seeking new employment Massachusetts requires claimants to actively look for work each week and register with MassHire. Certify weekly through the DUA online portal or by phone at 617-626-6338. Workers fired for cause or who quit without good cause are generally ineligible. Massachusetts recognizes good cause for domestic violence, medical conditions certified by a physician, and substantial employer-imposed changes to working conditions. ## Partial Unemployment for Part-Time Workers and Reduced Hours Massachusetts’ partial UI formula: your earnings disregard is **1/3 of your WBA** each week. At the maximum benefit of $1,105, you can earn up to about $368 per week without any benefit reduction. Earnings above that threshold reduce your benefit dollar-for-dollar. For example, if your WBA is $1,000 and you earn $500 part-time: - Disregard: 1/3 × $1,000 = $333 - Deductible earnings: $500 − $333 = $167 - Adjusted WBA: $1,000 − $167 = $833 Workers on reduced hours can also file for partial benefits. All earnings must be reported when certifying weekly with DUA. ## Tax Implications of Massachusetts Unemployment Benefits Massachusetts taxes unemployment compensation as ordinary income at the **flat 5% state rate** — one of the simpler tax situations for UI recipients. At the maximum $1,105/week benefit, that’s about $55/week in state tax. At the **federal level**, UI is taxable as ordinary income. You’ll receive Form 1099-G from DUA by January 31 — my [IRS refund schedule guide](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) and [tax filing dates guide](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) cover the key dates. You can elect both federal and Massachusetts state withholding from your weekly payments when certifying. Given the high weekly amounts here, withholding is strongly recommended to avoid a large tax bill. ## How to File File your claim at **mass.gov/unemployment** or call 617-626-6338. You’ll need your Social Security number, complete work history for the past 15 months, and bank account details for direct deposit. There is a **one-week waiting period** before benefits start. After approval, certify weekly through the DUA online portal — report wages and three work-search activities each week. If your claim is denied, you have **10 days** from the mailing date to request a hearing with the DUA Board of Review. ## Other Benefits Available to Unemployed Massachusetts Workers **MassHealth (Medicaid)**: Massachusetts expanded Medicaid and has one of the most comprehensive Medicaid programs in the country. Adults with low incomes qualify for full coverage, and the income eligibility threshold for standard MassHealth is 138% of the federal poverty level. Apply at mass.gov/masshealth. **CHIP (Children’s Health Insurance)**: Massachusetts’ Children’s Medical Security Plan provides coverage for children. Apply through MassHealth at mass.gov/masshealth. **SNAP (Food Assistance)**: Massachusetts SNAP provides monthly food benefits via EBT — see my [full Massachusetts SNAP guide](https://savingtoinvest.com/massachusetts-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) for current amounts and deposit dates. Income limits are at 130% of the federal poverty level. Apply through DTA at dtaconnect.eohhs.mass.gov or your local DTA office. **LIHEAP (Low-Income Home Energy Assistance Program)**: Massachusetts’ fuel assistance program helps cover heating and cooling costs. Contact your local Community Action Agency through mass.gov/service-details/find-a-community-action-agency. **MassHire Career Centers**: Massachusetts’ network of MassHire Career Centers provides free job search assistance, resume help, career counseling, and access to training grants. Participating in MassHire activities also counts toward your weekly work-search requirement. ## Looking Ahead: 2027 Outlook The next Massachusetts maximum WBA update is scheduled for the first Sunday of October 2026, using payroll data for the 12 months ending March 2026 — that new rate is effectively what carries into most of 2027. Given consistent wage growth in the state, another modest increase is possible. I’ll update this page when the new rate is announced. For current rates, claim status, and program information, go to **mass.gov/unemployment** or call 617-626-6338. ## Common Issues to Watch Out For **Overpayment notices and waivers.** If DUA later determines you were paid more than you should have been — a common trigger is a late employer wage report or an error on a certification — you’ll get an overpayment notice. Non-fraud overpayments can often be waived or set up on a repayment plan; fraud overpayments generally can’t be waived and carry a penalty. If you get one, don’t ignore it — respond by the deadline and ask about a waiver. **Not documenting your three weekly work-search activities.** DUA can ask you to produce records of your job search retroactively. Save the company name, date, and how you applied for every activity as you go — a missing record is one of the more common reasons a certification gets questioned after the fact. **Missing the 10-day appeal window.** If you’re denied, you have just 10 days from the mailing date to request a hearing with the DUA Board of Review — one of the shorter windows in the country. File the appeal first, then assemble your evidence. --- Frequently Asked Questions QWhat is Massachusetts' maximum weekly unemployment benefit for 2026? AThe maximum is $1,105 per week, effective October 5, 2025. This is set at 57.5% of Massachusetts' average weekly wage of $1,922.48 for 2025. Benefits last up to 30 weeks. QDoes Massachusetts tax unemployment benefits? AYes. Massachusetts taxes UI at the flat 5% state income tax rate. Federal taxes also apply at your marginal rate. You can elect withholding from your weekly payments through the DUA online portal. QHow does partial unemployment work in Massachusetts? AMassachusetts disregards 1/3 of your WBA from your weekly earnings before reducing your benefit. At the $1,105 maximum, you can earn about $368 per week without any reduction. Earnings above that threshold reduce your benefit dollar-for-dollar. QDoes Massachusetts have a dependent allowance for unemployment? AYes — Massachusetts adds $25 per week per qualifying dependent (or 5% of WBA, whichever is greater), up to five dependents. List your dependents when filing to receive the enhanced benefit. QDoes Massachusetts have Medicaid for unemployed adults? AYes — Massachusetts has one of the most comprehensive Medicaid programs in the country through MassHealth. Most unemployed residents whose income drops will qualify for full coverage. Apply at mass.gov/masshealth. QWhen does Massachusetts update its maximum unemployment benefit? AEach October. The state uses a statutory formula: 57.5% of the state average weekly wage for the prior year. The current $1,105 rate applies from October 5, 2025 through October 2026. **Categories:** Government Rebates and Payments **Tags:** Massachusetts, unemployment benefits --- ### [Maryland Unemployment Benefits: 2027 Outlook, Current 2026 Amount Up to $430/Week via BEACON](https://savingtoinvest.com/maryland-unemployment-benefits/) **Published:** September 18, 2020 **Author:** Andy **Content:** ### Key Takeaways - Maryland's maximum weekly unemployment benefit is $430/week in 2026. The minimum is $50/week. - Benefits last up to 26 weeks, for a total maximum of $11,180. - Starting in 2027, Maryland's maximum benefit will be recalculated as 40% of the state average weekly wage - it could increase meaningfully once that change takes effect. - File your claim online through Maryland's BEACON portal at beacon.labor.maryland.gov or via the BEACON mobile app. - Maryland taxes unemployment benefits as ordinary income - both state and local taxes apply, so it's worth electing withholding when you file. Maryland unemployment insurance pays between **$50 and $430 per week** in 2026, with benefits available for up to 26 weeks. That cap hasn’t changed in several years, but a law passed in the 2026 General Assembly session (SB 3) will tie Maryland’s maximum benefit to 40% of the state average weekly wage starting in 2027 — which means the cap is likely to rise. See how Maryland’s current maximum compares to other states at [SavingToInvest’s national unemployment benefits comparison](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/). Covered in this Article: [Toggle](#) - [2026 Benefit Amounts and Duration](#2026_Benefit_Amounts_and_Duration) - [What Changes in 2027](#What_Changes_in_2027) - [Who Qualifies](#Who_Qualifies) - [How to File via BEACON](#How_to_File_via_BEACON) - [Partial Unemployment for Reduced Hours](#Partial_Unemployment_for_Reduced_Hours) - [Tax Treatment of Maryland Unemployment Benefits](#Tax_Treatment_of_Maryland_Unemployment_Benefits) - [Other Benefits Available to Unemployed Marylanders](#Other_Benefits_Available_to_Unemployed_Marylanders) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## 2026 Benefit Amounts and Duration AmountMaximum weekly benefit$430/weekMinimum weekly benefit$50/weekMaximum duration26 weeksMaximum total benefit$11,180 Your actual weekly benefit is calculated at approximately **1/24th of your wages from your highest-earning base period quarter**. To reach the maximum $430/week, your highest quarter wages need to be above roughly $10,320. The exact formula is applied by the Division of Unemployment Insurance after you file. Maryland uses a standard base period of **the first four of the last five completed calendar quarters** before your claim date. If you don’t have enough wages in the standard base period, an alternative base period — the four most recently completed quarters — is available. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates as Maryland’s benefit rules and amounts change.* ## What Changes in 2027 This is worth flagging now: SB 3, passed in the 2026 Maryland General Assembly session, changes how the maximum weekly benefit is calculated starting January 1, 2027. Instead of a fixed dollar cap, the maximum will be set at **40% of the Maryland state average weekly wage**, updated annually. The state average weekly wage has been tracking well above $1,000 — so the 2027 cap could push meaningfully higher than the current $430. I’ll update this page once the official 2027 figure is set. ## Who Qualifies To receive Maryland unemployment benefits, you must: - Have earned wages in at least **two quarters** of your base period - Have total base period wages of at least **1.5 times your highest quarter wages** - Have earned at least **$900 in your highest base period quarter** - Have lost your job through no fault of your own — layoff, reduction in force, plant closure, or similar - Be physically able and available to work, and actively looking for new employment Maryland requires claimants to make **at least one job-search contact per week** and to register with the Maryland Workforce Exchange (MWE) at mwejobs.maryland.gov. You certify your eligibility weekly through BEACON. Workers who were fired for misconduct or who quit without good cause are generally ineligible. Maryland does recognize certain good-cause separations: domestic violence, a significant change to your pay or working conditions, following a spouse who was relocated, or a documented medical condition that prevents you from continuing the job. ## How to File via BEACON Maryland’s unemployment system is managed through **BEACON** (Benefits and Employment Assistance Claimant Online Network), available at [beacon.labor.maryland.gov](https://beacon.labor.maryland.gov). There’s also a BEACON mobile app for iOS and Android if you prefer to file and certify from your phone. To file an initial claim, you’ll need: - Your Social Security number - Work history for the past 18 months (employer names, addresses, dates of employment) - Your most recent employer’s FEIN (Federal Employer Identification Number) if you have it - Banking information for direct deposit - If non-citizen: alien registration number and work authorization documentation Maryland has a **one-week waiting period** — your first week of unemployment is not paid. After that, certify weekly through BEACON by confirming you were able and available to work, reporting any earnings, and documenting your job-search activity. If your claim is denied, you have **15 days** from the mailing date of the determination to request a hearing. File the appeal through BEACON or by calling the Lower Appeals Division directly. ## Partial Unemployment for Reduced Hours If you’re working part-time or had your hours cut, you may still qualify for partial unemployment benefits in Maryland. The earnings disregard works like this: **the first $50 of weekly gross earnings (or 1/4 of your weekly benefit amount, whichever is greater) is ignored, and the rest is deducted from your benefit dollar-for-dollar.** Here’s how that looks in practice: - Earn $100/week, WBA is $350: $100 − $87.50 (1/4 of $350) = $12.50 deducted → UI benefit is $337.50 - Earn $250/week, WBA is $350: $250 − $87.50 = $162.50 deducted → UI benefit is $187.50 - Earn $430/week or more (equal to WBA): $0 in UI for that week Always report **gross earnings** — before taxes — in the week you earned them, not when the paycheck arrives. ## Tax Treatment of Maryland Unemployment Benefits Maryland taxes unemployment compensation as ordinary income. That means you’ll owe both state income tax and local (county) income tax on your benefits. Maryland’s **state income tax rate** ranges from 2% to 5.75% depending on your income. Local rates vary by county — typically between 2.25% and 3.2% of taxable income. Most UI recipients will see a combined state plus local rate of around 7–8%. At the **federal level**, unemployment benefits are taxable as ordinary income. You’ll receive Form 1099-G from the [Maryland Division of Unemployment Insurance](https://labor.maryland.gov/unemployment-insurance/) by January 31 — my [IRS refund schedule guide](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) and [tax filing dates guide](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) cover the key dates. You can elect **10% federal withholding** through BEACON when you file. Maryland state and local withholding can also be elected — I’d recommend doing both to avoid a surprise bill at tax time. ## Other Benefits Available to Unemployed Marylanders **Maryland Medicaid**: Maryland expanded Medicaid under the ACA. Adults earning up to 138% of the federal poverty level qualify for full Medicaid coverage. During a period of unemployment, most adults will meet this income threshold. Apply at [marylandhealthconnection.gov](https://www.marylandhealthconnection.gov) or call 855-642-8572. **SNAP (Food Assistance)**: Maryland’s SNAP program provides monthly food benefits via an EBT card. The gross income limit is 130% of the federal poverty level, and Maryland has a BBCE (Broad-Based Categorical Eligibility) option at 200% FPL. Apply through the Department of Human Services at [mydhrgov.maryland.gov](https://mymdthinkfirst.dhr.maryland.gov) or call 1-800-332-6347. See the [Maryland SNAP program guide](https://savingtoinvest.com/maryland-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) for current benefit amounts and deposit dates. **LIHEAP (Energy Assistance)**: The Maryland Energy Assistance Program provides help with home heating and cooling costs. Applications open in the fall through local community action agencies. Contact the Department of Human Services for your local office. **Maryland Workforce Development**: The Division of Workforce Development and Adult Learning (DWDAL) offers free job search help, skills assessments, and access to WIOA-funded training at American Job Centers across the state. Find your nearest location at [labor.maryland.gov/employment](https://labor.maryland.gov/employment/). ## Looking Ahead: 2027 Outlook The biggest near-term change is the 2027 shift to a wage-indexed maximum benefit. Once the Maryland Department of Labor announces the 2027 state average weekly wage figure, the new maximum will be calculable. Based on recent Maryland wage trends, the new maximum could land somewhere in the $500–$600/week range — a meaningful improvement for workers. In the meantime, Maryland’s $430/week is roughly mid-pack nationally. Neighboring Virginia’s maximum jumps to $478/week in July 2026. Pennsylvania’s is $605/week. For workers near state lines, it’s worth knowing which state’s program you’d qualify under based on where you worked. I’ll update this page when the 2027 cap is set and if any additional Maryland UI changes are announced. ## Common Issues to Watch Out For **Missing the one weekly work-search contact.** Maryland’s requirement is lower than most states — just one job-search contact per week — but it’s still mandatory, and BEACON can ask you to document it. Keep a simple log of the company, date, and how you applied. **Overpayment notices and waivers.** If the Division later determines you were paid more than you should have been — a common trigger is a late employer wage report or an error on a certification — you’ll get an overpayment notice. Non-fraud overpayments can often be waived or set up on a repayment plan; fraud overpayments generally can’t be waived and carry a penalty. **Missing the 15-day appeal window.** If you’re denied, you have 15 days from the mailing date of the determination to request a hearing. File through BEACON or by calling the Lower Appeals Division directly — don’t wait to gather every document first. --- Frequently Asked Questions QWhat is Maryland's maximum weekly unemployment benefit in 2026? AMaryland's maximum weekly benefit is $430 in 2026. The minimum is $50/week. Benefits last up to 26 weeks for a total maximum of $11,180. Starting January 1, 2027, the maximum will be recalculated as 40% of the Maryland state average weekly wage under SB 3. QHow does Maryland calculate my weekly unemployment benefit amount? AYour weekly benefit amount is approximately 1/24th of your wages from your highest-earning base period quarter, subject to the $50 minimum and $430 maximum. The base period is the first four of the last five completed calendar quarters before your claim date. An alternative base period (the four most recently completed quarters) is available if you don't qualify under the standard base period. QHow do I file for Maryland unemployment benefits? AFile online through the BEACON portal at beacon.labor.maryland.gov, or use the BEACON mobile app. You'll need your Social Security number, 18 months of work history, and bank account information for direct deposit. After your initial claim, certify weekly through BEACON and document at least one job-search contact per week. QDoes Maryland tax unemployment benefits? AYes. Maryland taxes unemployment benefits as ordinary income. You'll owe both state income tax (2%-5.75%) and local/county income tax (typically 2.25%-3.2%), for a combined rate of around 7-8% for most recipients. Federal income tax also applies. Elect withholding in BEACON when you file to avoid a tax bill in April. QCan I collect partial unemployment if my hours were cut? AYes. Maryland allows partial benefits if you're working but earning less than your weekly benefit amount. The disregard is the greater of $50 or one-quarter of your weekly benefit amount - earnings above that reduce your benefit dollar-for-dollar. Report all gross earnings in the week you earned them through your BEACON weekly certification. QWhat happens to Maryland's unemployment maximum in 2027? AStarting January 1, 2027, Maryland's maximum weekly benefit will be set at 40% of the state average weekly wage (under SB 3 passed in the 2026 General Assembly). The Maryland state average weekly wage has been tracking above $1,000, so the 2027 cap could increase significantly above the current $430 ceiling. The official figure will be announced later in 2026. QWhat other assistance is available if I lose my job in Maryland? AApply for Maryland Medicaid at marylandhealthconnection.gov (adults earning up to 138% of the poverty level qualify). Apply for SNAP food assistance through the Department of Human Services at mymdthinkfirst.dhr.maryland.gov or call 1-800-332-6347. LIHEAP energy assistance opens each fall. Visit a Maryland American Job Center for free job search help and workforce training through WIOA. **Categories:** Government Rebates and Payments --- ### [Maine Unemployment Benefits: 2027 Outlook, Current 2026 Amount Up to $623/Week](https://savingtoinvest.com/maine-unemployment-benefits/) **Published:** June 20, 2026 **Author:** Andy **Content:** ### Key Takeaways - Maine's maximum weekly unemployment benefit is $623 in 2026 — a solid benefit that puts Maine in the upper-middle tier of New England states. - Benefits last up to 26 weeks under normal conditions, though Maine has historically extended benefits during downturns. - Maine's partial UI formula uses a 50% earnings disregard — one of the more generous in the country — meaning you can earn up to half your WBA before benefits start to reduce. - Maine taxes unemployment benefits as ordinary state income at graduated rates up to 7.15%; federal taxes also apply. - Beyond UI, unemployed Maine residents can access Medicaid (expanded), CubCare (CHIP), SNAP, LIHEAP energy assistance, and career services through CareerCenters statewide. Maine’s unemployment insurance program — managed by the [Maine Department of Labor (MDOL)](https://www.maine.gov/labor/) — provides up to $623 per week. That 2026 maximum adjusts periodically, though I haven’t seen a specific increase confirmed for 2027 yet. Maine’s 50% earnings disregard for partial benefits is one of the most worker-friendly in New England, and the state has expanded Medicaid, providing an important safety net for those who lose job-based health coverage. See all state comparisons at [SavingToInvest’s unemployment benefits guide](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/). Covered in this Article: [Toggle](#) - [2026 Benefit Amounts and Duration](#2026_Benefit_Amounts_and_Duration) - [Who Qualifies](#Who_Qualifies) - [Partial Unemployment for Part-Time Workers and Reduced Hours](#Partial_Unemployment_for_Part-Time_Workers_and_Reduced_Hours) - [Tax Implications of Maine Unemployment Benefits](#Tax_Implications_of_Maine_Unemployment_Benefits) - [How to File](#How_to_File) - [Other Benefits Available to Unemployed Maine Workers](#Other_Benefits_Available_to_Unemployed_Maine_Workers) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## 2026 Benefit Amounts and Duration Maine’s **maximum weekly benefit is $623** for 2026. The minimum is $80. Benefits last up to **26 weeks**. Maine also provides a **dependent allowance** — approximately 5% of WBA per qualifying dependent per week, which can raise the effective maximum for larger households. Your Weekly Benefit Amount is calculated at **approximately 1/22nd of your wages in your two highest base period quarters**, subject to the state cap. The base period is the first four of the last five completed calendar quarters before filing. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates as Maine’s unemployment rules evolve.* ## Who Qualifies To receive Maine UI benefits, you must: - Have earned wages in **at least two quarters** of the base period - Have wages in your **highest quarter of at least $2,340** - Have total base period wages of at least **6× your WBA** - Have lost your job through no fault of your own (layoff, reduction in force, plant closure) - Be physically able and available to work, and actively seeking employment Maine requires claimants to make three work-search contacts per week. Register at the Maine JobLink (joblink.maine.gov). Weekly certifications are submitted online or by phone. Workers fired for misconduct or who quit without good cause are generally ineligible. Maine recognizes good cause for domestic violence, medical conditions, and significant employer-imposed changes to working conditions or terms. ## Partial Unemployment for Part-Time Workers and Reduced Hours Maine’s partial UI formula is among the most generous in the Northeast: you can earn wages up to **50% of your WBA** per week without any benefit reduction. Wages above that 50% threshold are deducted dollar-for-dollar. At the maximum benefit of $623, you can earn up to about $311 per week without any impact on your UI. Earn $400 and your benefit is reduced by $89, giving you $534 for that week. This 50% disregard is especially valuable for workers picking up part-time work during their job search. Workers whose employer reduced their hours can also file for partial benefits while remaining available for full-time work. ## Tax Implications of Maine Unemployment Benefits Maine taxes unemployment compensation as ordinary income at the **state level**. Maine uses a graduated income tax with rates of 5.8% up to $24,500, 6.75% on income up to $58,050, and **7.15%** on income above that for single filers in 2026. Most UI recipients will pay 5.8%–6.75% on their benefits depending on total annual income. At the **federal level**, UI is taxable as ordinary income. You’ll receive Form 1099-G from MDOL each January — my [IRS refund schedule guide](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) and [tax filing dates guide](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) cover the key dates. You can elect both federal and Maine state withholding from your weekly payments through the ReEmployME portal. Given Maine’s moderate-to-high state tax rates, withholding is advisable. ## How to File File your claim at **reemployme.maine.gov** or call 800-593-7660. You’ll need your Social Security number, work history for the past 18 months, and bank account details for direct deposit or the MDOL debit card. There is a **one-week waiting period** before benefits start. After approval, certify weekly through ReEmployME — report wages and work-search activities each week. If your claim is denied, you have **15 days** from the mailing date to appeal to the Unemployment Insurance Commission. ## Other Benefits Available to Unemployed Maine Workers **MaineCare (Medicaid)**: Maine expanded Medicaid through a 2017 voter initiative implemented in 2019. Adults earning up to 138% of the federal poverty level qualify for comprehensive coverage. Apply at maine.gov/dhhs or at your local DHHS office. **CubCare (CHIP)**: Maine’s CubCare program provides low-cost or free health coverage for children in households earning up to 200% of the federal poverty level. Apply through the Maine DHHS. **SNAP (Food Assistance)**: Maine’s SNAP program provides monthly food benefits via EBT card — see my [full Maine SNAP guide](https://savingtoinvest.com/maine-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) for current amounts and deposit dates. Income limits are at 185% of the federal poverty level (Maine uses a higher threshold than the federal minimum). Apply at maine.gov/dhhs or your local DHHS office. **Maine LIHEAP (Low Energy Assistance Program — HEAP)**: Maine’s HEAP program helps with heating costs — critical given Maine’s cold winters. Apply through your local Community Action Agency. Find yours at meconnect.maine.gov. **Maine CareerCenters**: Maine’s CareerCenter network offers free job search assistance, resume help, career counseling, and access to WIOA training grants. Trade Adjustment Assistance is available for workers displaced by foreign trade. Participating in CareerCenter activities counts toward your job-search requirement. ## Looking Ahead: 2027 Outlook Maine’s UI trust fund has stayed healthy, and the state has historically been responsive to expanding benefits during downturns — I haven’t seen a specific proposal for 2027, but that track record is worth knowing if conditions change. The state’s generous SNAP income threshold (185% FPL) and expanded Medicaid already make Maine’s overall safety net for unemployed workers above average. I don’t have a specific date to point to for a 2027 benefit change — nothing is currently scheduled — but I’ll update this page if that changes. ## Common Issues to Watch Out For **Overpayment notices and waivers.** If MDOL later determines you were paid more than you should have been — a common trigger is a late employer wage report or an error on a certification — you’ll get an overpayment notice. Non-fraud overpayments can often be waived or set up on a repayment plan; fraud overpayments generally can’t be waived and carry a penalty. If you get one, don’t ignore it — respond by the deadline and ask about a waiver. **Not documenting your three weekly work-search contacts.** MDOL can ask you to produce records of your job search retroactively. Save the company name, date, and how you applied for every contact as you go — a missing record is one of the more common reasons a certification gets questioned after the fact. **Missing the 15-day appeal window.** If you’re denied, you have 15 days from the mailing date to appeal to the Unemployment Insurance Commission. Don’t wait to gather every document first — file the appeal, then assemble your evidence. --- Frequently Asked Questions QWhat is Maine's maximum weekly unemployment benefit for 2026? AThe maximum is $623 per week, lasting up to 26 weeks. Your WBA is calculated at approximately 1/22nd of your wages in your two highest base period quarters. QDoes Maine tax unemployment benefits? AYes. Maine taxes UI at graduated state rates — 5.8% to 7.15% depending on income. Federal taxes also apply. Elect both state and federal withholding through ReEmployME at reemployme.maine.gov. QHow does partial unemployment work in Maine? AMaine's 50% earnings disregard is among the most generous in New England. You can earn up to half your WBA each week before any reduction. Wages above 50% of WBA reduce your benefit dollar-for-dollar. QDoes Maine have Medicaid for unemployed adults? AYes — Maine expanded Medicaid (MaineCare) to cover adults up to 138% of the federal poverty level. With only UI as income, most claimants will qualify for free coverage. Apply at maine.gov/dhhs. QWhat is Maine's SNAP income limit? AMaine uses a higher income threshold of 185% of the federal poverty level for SNAP (vs. the federal minimum of 130%), meaning more unemployed workers qualify. Apply through the Maine DHHS. QWhat other assistance is available to unemployed Maine workers? AApply for MaineCare Medicaid and SNAP through maine.gov/dhhs. Apply for CubCare (CHIP for children) there as well. Apply for HEAP heating assistance through your local Community Action Agency (meconnect.maine.gov). Visit Maine CareerCenters for free job search help and WIOA retraining. **Categories:** Taxes and Retirement --- ### [Louisiana Unemployment Benefits: 2027 Outlook, Current 2026 Amount Just $275/Week](https://savingtoinvest.com/louisiana-unemployment-benefits/) **Published:** June 20, 2026 **Author:** Andy **Content:** ### Key Takeaways - Louisiana's maximum weekly unemployment benefit is $275 in 2026 — one of the lowest caps in the entire country, making Louisiana one of the hardest states to weather unemployment from a benefits perspective. - Benefits last up to 26 weeks, which is the standard duration — but the dollar amount is extremely limited relative to actual living costs. - Louisiana's partial UI formula allows earnings up to 50% of your WBA before benefits reduce — one of the more generous disregards, though it's of limited value given the low base benefit. - Louisiana taxes unemployment benefits as ordinary state income at graduated rates up to 3%; federal taxes also apply. - Beyond UI, unemployed Louisiana workers can access Medicaid (expanded in 2016), SNAP, LIHEAP energy assistance, and career services through the Louisiana Workforce Commission. Louisiana’s unemployment insurance program — managed by the [Louisiana Workforce Commission (LWC)](https://www.laworks.net/) — has a maximum of just $275 per week. Only Mississippi’s $235 cap is lower nationally, and Louisiana’s cap has barely moved in years — I haven’t seen a legislative proposal that would raise it for 2027. For context on how extreme this is: $275/week is roughly $1,070/month — well below the cost of a one-bedroom apartment in virtually any Louisiana city. See how Louisiana compares at [SavingToInvest’s unemployment benefits comparison by state](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/). Covered in this Article: [Toggle](#) - [2026 Benefit Amounts and Duration](#2026_Benefit_Amounts_and_Duration) - [Who Qualifies](#Who_Qualifies) - [Partial Unemployment for Part-Time Workers and Reduced Hours](#Partial_Unemployment_for_Part-Time_Workers_and_Reduced_Hours) - [Tax Implications of Louisiana Unemployment Benefits](#Tax_Implications_of_Louisiana_Unemployment_Benefits) - [How to File](#How_to_File) - [Other Benefits Available to Unemployed Louisiana Workers](#Other_Benefits_Available_to_Unemployed_Louisiana_Workers) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## 2026 Benefit Amounts and Duration Louisiana’s **maximum weekly benefit is $275** for 2026. The minimum is $10. Benefits last up to **26 weeks**. Your Weekly Benefit Amount is calculated at **1/25th of your wages in your highest base period quarter**, subject to the state cap. The base period is the first four of the last five completed calendar quarters before filing. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates as Louisiana’s unemployment rules evolve.* ## Who Qualifies To receive Louisiana UI benefits, you must: - Have earned wages in **at least two quarters** of the base period - Have wages in your **highest quarter of at least $1,200** - Have total base period wages of at least **$1,200** (additionally, wages must be earned in two quarters) - Have lost your job through no fault of your own (layoff, position eliminated, plant closure) - Be physically able and available to work, and actively seeking employment Louisiana requires claimants to make at least five work-search contacts per week — one of the higher work-search requirements nationally. Register at LWConline.laworks.net and document all job-search activities. Workers fired for misconduct or who quit without good cause are generally ineligible. Louisiana recognizes documented domestic abuse situations and medically necessary resignations as potential good cause. ## Partial Unemployment for Part-Time Workers and Reduced Hours Louisiana’s partial UI formula uses a **50% of WBA earnings disregard**: wages up to 50% of your weekly benefit don’t reduce your payment. Wages above the 50% threshold are deducted dollar-for-dollar. At the maximum benefit of $275, you can earn up to $123.50 per week without any reduction. Earn $175 and your benefit is reduced by $51.50 ($175 − $123.50), giving you $195.50 for that week. The 50% disregard is relatively generous in principle, but given Louisiana’s very low WBA cap, the actual dollar disregard amount is small. Workers whose hours were reduced by their employer can file for partial UI, as long as they remain available for full-time work. Report all wages when certifying each week. ## Tax Implications of Louisiana Unemployment Benefits Louisiana taxes unemployment compensation as ordinary income at the **state level**. Louisiana uses a graduated income tax with rates of 1.85% (up to $12,500), 3.5% (up to $50,000), and 4.25% above that for 2026 (verify current rates at revenue.louisiana.gov as Louisiana has been adjusting its rate schedule). Most UI recipients, given the low benefit amount, will pay in the 1.85%–3.5% range. At the **federal level**, UI is taxable as ordinary income. You’ll receive Form 1099-G from LWC each January — my [IRS refund schedule guide](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) and [tax filing dates guide](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) cover the key dates. You can elect federal withholding at 10% from your weekly payments through the LWConline portal. ## How to File File your claim at **laworks.net** or call 866-783-5567. You’ll need your Social Security number, work history for the past 18 months, and bank account information for direct deposit or the LWC prepaid card. There is a **one-week waiting period** before benefits start. Certify weekly through laworks.net. Report your five work-search contacts and any wages earned. If denied, you have **15 days** from the mailing date to appeal. Given the financial urgency — Louisiana’s benefit is very low — filing an appeal promptly is important. ## Other Benefits Available to Unemployed Louisiana Workers **Louisiana Medicaid**: Louisiana expanded Medicaid under the ACA in 2016. Adults earning up to 138% of the federal poverty level (about $20,120 for a single person in 2026) can enroll in comprehensive coverage. Given the low UI benefit, many unemployed Louisianans will qualify. Apply at ldh.la.gov/medicaid or [healthcare.gov](https://healthcare.gov). **LaCHIP (CHIP for Children)**: Louisiana’s LaCHIP program provides health coverage for children in households earning up to 250% of the federal poverty level. Apply at ldh.la.gov. **SNAP (Food Assistance)**: Given Louisiana’s very low UI cap, SNAP is particularly important. Louisiana’s SNAP program provides monthly food benefits via EBT card — see my [full Louisiana SNAP guide](https://savingtoinvest.com/louisiana-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) for current amounts and deposit dates. Income limits are at 130% of the federal poverty level. Apply at dcfs.la.gov. **LIHEAP (Low Income Energy Assistance)**: Louisiana’s LIHEAP helps with utility costs, including both heating and cooling — the latter being important given Louisiana’s hot climate. Apply through your local Community Services office or dcfs.la.gov. **LWC WorkReady Workforce Centers**: Louisiana’s WorkReady workforce centers offer free job search assistance, resume help, and access to WIOA training grants. Workers from mass layoffs may qualify for Rapid Response services. ## Looking Ahead: 2027 Outlook Louisiana’s $275 maximum has barely moved in years despite inflation, and I haven’t seen a legislative proposal for 2027 that would change that. The low benefit remains an ongoing policy concern that periodically comes up at legis.la.gov, but nothing is currently scheduled for a vote. Louisiana also periodically adjusts its income tax structure — worth checking revenue.louisiana.gov for the current-year rates before you file, since the bracket thresholds have shifted before. I’ll update this page if either the benefit cap or the tax brackets change. ## Common Issues to Watch Out For **Missing the five weekly work-search contacts.** Louisiana requires five work-search contacts a week — one of the highest requirements in the country — and LWC can ask you to document them retroactively. Save the company name, date, and how you applied for every contact as you go. **Underestimating how little the partial UI disregard is worth.** Louisiana’s 50% earnings disregard sounds generous, but with a $275 maximum, the actual dollar amount is small — about $123.50 at the cap. Don’t assume part-time work leaves your full benefit untouched; run the math first. **Missing the 15-day appeal window.** If you’re denied, you have 15 days from the mailing date to appeal — and given how low Louisiana’s benefit already is, losing weeks to a missed deadline is costlier here than in higher-benefit states. File the appeal first, then assemble your evidence. --- Frequently Asked Questions QWhat is Louisiana's maximum weekly unemployment benefit for 2026? AThe maximum is $275 per week — one of the two lowest caps in the country (only Mississippi is lower at $235). Benefits last up to 26 weeks. QDoes Louisiana tax unemployment benefits? AYes. Louisiana taxes UI as ordinary income at graduated state rates. Most UI recipients will pay 1.85%–3.5% depending on total annual income. Federal income tax also applies. Elect 10% federal withholding through laworks.net. QHow does partial unemployment work in Louisiana? ALouisiana's 50% disregard means you can earn wages up to 50% of your WBA before benefits start to reduce. At $275 max, that's about $123.50/week. Wages above that threshold reduce your benefit dollar-for-dollar. QDoes Louisiana require five job-search contacts per week? AYes — Louisiana requires five documented work-search contacts per week while collecting UI, which is among the highest requirements nationally. Keep records of all contacts. LWConline.laworks.net is where you report them. QDoes Louisiana have Medicaid for unemployed adults? AYes — Louisiana expanded Medicaid in 2016 to cover adults up to 138% of the federal poverty level. With only $275/week in UI, most claimants will qualify for free coverage. Apply at ldh.la.gov/medicaid. QWhat other assistance is available to unemployed Louisiana workers? AApply for Medicaid and LaCHIP (children's coverage) at ldh.la.gov. Apply for SNAP food assistance at dcfs.la.gov. Apply for LIHEAP through your local Community Services office. Visit LWC WorkReady Workforce Centers for free career services and retraining grants. **Categories:** Taxes and Retirement --- ### [Kentucky Unemployment Benefits: 2027 Outlook, Current 2026 Amount Up to $720/Week](https://savingtoinvest.com/kentucky-unemployment-benefits/) **Published:** November 18, 2022 **Author:** Andy **Content:** ### Key Takeaways - Kentucky's maximum weekly unemployment benefit is $720 in 2026, up from $552, following the annual adjustment based on the statewide average weekly wage. - Benefits last up to 26 weeks under standard conditions. - Kentucky's partial UI formula uses a 20% earnings disregard — you can earn up to 20% of your WBA per week before your benefit is reduced. - Kentucky taxes unemployment benefits as ordinary state income at a flat 4% rate for 2026 (reduced from 4.5% in prior years); federal taxes also apply. - Beyond UI, unemployed Kentuckians can access Medicaid (expanded in 2014 under Kentucky Health), KCHIP (CHIP), SNAP, LIHEAP energy assistance, and career services through Kentucky Career Centers statewide. Kentucky’s unemployment insurance program — managed by the [Kentucky Education and Workforce Development Cabinet (KEWES)](https://kewes.ky.gov/) — increased its maximum weekly benefit significantly to $720 in 2026, up from $552 in 2025. That’s a locked-in 2026 number; whether 2027 brings another jump depends on how much Kentucky’s average weekly wage keeps climbing, since the state recalculates the cap off that figure each year. Kentucky’s flat income tax rate also dropped to 4% in 2026, providing additional savings for claimants who owe state taxes. Compare all states at [SavingToInvest’s unemployment benefits by state breakdown](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/). Covered in this Article: [Toggle](#) - [2026 Benefit Amounts and Duration](#2026_Benefit_Amounts_and_Duration) - [Who Qualifies](#Who_Qualifies) - [Partial Unemployment for Part-Time Workers and Reduced Hours](#Partial_Unemployment_for_Part-Time_Workers_and_Reduced_Hours) - [Tax Implications of Kentucky Unemployment Benefits](#Tax_Implications_of_Kentucky_Unemployment_Benefits) - [How to File](#How_to_File) - [Other Benefits Available to Unemployed Kentucky Workers](#Other_Benefits_Available_to_Unemployed_Kentucky_Workers) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## 2026 Benefit Amounts and Duration Kentucky’s **maximum weekly benefit is $720** for 2026. The minimum is $39. Benefits last up to **26 weeks**. Your Weekly Benefit Amount is calculated at approximately **1.1923% of your total base period wages** (or roughly 55% of your average weekly wage), subject to the $720 cap. The base period is the first four of the last five completed calendar quarters before filing. Things can change — I’ll update this page when any adjustments are announced. [Subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## Who Qualifies To receive Kentucky UI benefits, you must: - Have earned wages in covered employment during the base period - Have wages in at least **two different base period quarters** - Have total base period wages of at least **$1.5× your high-quarter wages** - Have lost your job through no fault of your own (layoff, reduction in force, business closure) - Be physically able and available for suitable work - Actively seek employment and be registered with the Kentucky Career Center Certify weekly online through kewes.ky.gov or by phone. Kentucky requires you to actively search for suitable work and document those contacts. Workers fired for misconduct or who quit without good cause are generally ineligible. Kentucky recognizes good cause for domestic violence, compelling medical reasons, and substantial employer-imposed changes. ## Partial Unemployment for Part-Time Workers and Reduced Hours Kentucky’s partial UI formula: the earnings disregard is **20% of your WBA** per week. Earnings above that threshold reduce your benefit dollar-for-dollar. For example, if your WBA is $600 (20% = $120) and you earn $250: - Disregard: $120 - Deductible earnings: $250 − $120 = $130 - Adjusted WBA: $600 − $130 = $470 Workers on reduced hours can file for partial benefits. All gross earnings must be reported when certifying each week. ## Tax Implications of Kentucky Unemployment Benefits Kentucky taxes unemployment compensation as ordinary income at the **flat 4.0% state rate** for 2026 (reduced from 4.5% in 2023 and 4.0% starting January 1, 2024; further reductions are possible in future years as part of Kentucky’s ongoing tax reform). At $720/week for 26 weeks, that’s about $749 in state tax at the maximum. At the **federal level**, UI is taxable as ordinary income. You’ll receive Form 1099-G from KEWES by January 31 — my [IRS refund schedule guide](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) and [tax filing dates guide](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) cover the key dates. You can elect federal and Kentucky state withholding when certifying through the KEWES portal. Withholding is recommended. ## How to File File your claim at **kewes.ky.gov** or call 502-875-0442 (Frankfort metro) or 800-648-6057 (statewide). You’ll need your Social Security number, work history for the past 18 months, and bank account details for direct deposit. There is a **one-week waiting period** before benefits start. After approval, certify weekly through the KEWES online portal — report all wages and work-search activities each week. If your claim is denied, you have **15 days** from the mailing date to file an appeal. ## Other Benefits Available to Unemployed Kentucky Workers **Kentucky Medicaid**: Kentucky expanded Medicaid in 2014 under the Affordable Care Act (Kentucky Health). Adults earning up to 138% of the federal poverty level qualify for free comprehensive coverage. Apply at benefind.ky.gov or kynect.ky.gov. **KCHIP (Children’s Health Insurance)**: Kentucky’s KCHIP program provides low-cost health coverage for children in households up to 218% of the federal poverty level. Apply at kynect.ky.gov. **SNAP (Food Assistance)**: Kentucky SNAP provides monthly food benefits via EBT — see my [full Kentucky SNAP guide](https://savingtoinvest.com/kentucky-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) for current amounts and deposit dates. Apply at benefind.ky.gov or your local DCBS (Department for Community Based Services) office. **LIHEAP (Energy Assistance)**: Kentucky’s LIHEAP program provides heating and cooling assistance. Apply through your local community action agency or contact Kentucky LIHEAP at chfs.ky.gov/LIHEAP. **Kentucky Career Centers**: Kentucky’s Career Center network provides free job search assistance, skills training, resume help, and access to WIOA-funded training grants. All UI claimants are encouraged to register and use these services, which also satisfy work-search requirements. ## Looking Ahead: 2027 Outlook Kentucky’s flat income tax rate is scheduled to keep declining under SB 8 (2022) — the 4% rate could drop to 3.5% once state revenues hit the statutory trigger, which would further reduce what you owe on UI benefits. Whether that trigger gets hit for 2027 depends on state revenue collections through the rest of 2026. The benefit maximum itself moved sharply this year — up $168 to $720 — reflecting Kentucky’s fast-rising average weekly wage. Whether 2027 brings another big jump or a smaller one depends on whether that wage growth continues at the same pace. I’ll update this page once the 2027 benefit maximum and tax rate are both confirmed. ## Common Issues to Watch Out For **Overpayment notices and waivers.** If KEWES later determines you were paid more than you should have been — a common trigger is a late employer wage report or an error on a certification — you’ll get an overpayment notice. Non-fraud overpayments can often be waived or set up on a repayment plan; fraud overpayments generally can’t be waived and carry a penalty. If you get one, don’t ignore it — respond by the deadline and ask about a waiver. **Not documenting work-search contacts.** Kentucky requires you to actively search for suitable work and document those contacts, and KEWES can ask you to produce records retroactively. Save the company name, date, and how you applied for every contact as you go. **Missing the 15-day appeal window.** If you’re denied, you have 15 days from the mailing date to appeal. Don’t wait to gather every document first — file the appeal, then assemble your evidence. --- Frequently Asked Questions QWhat is Kentucky's maximum weekly unemployment benefit for 2026? A$720 per week, up from $552 in 2025. Benefits last up to 26 weeks. The $168 increase reflects Kentucky's rising statewide average weekly wage. QDoes Kentucky tax unemployment benefits? AYes. Kentucky taxes UI at the flat 4.0% state income tax rate for 2026. Federal taxes also apply. Elect withholding from your weekly KEWES payments to avoid a tax bill. QHow does partial unemployment work in Kentucky? AKentucky disregards 20% of your WBA from weekly gross earnings. Earnings above that threshold reduce your benefit dollar-for-dollar. Report all earnings when certifying weekly. QDoes Kentucky have Medicaid for unemployed adults? AYes — Kentucky expanded Medicaid in 2014. Adults earning up to 138% of the federal poverty level qualify for free comprehensive coverage through Kentucky Health. Apply at kynect.ky.gov. QWill Kentucky's income tax rate change in 2027? APossibly. Under SB 8, Kentucky's income tax rate can drop to 3.5% if state revenues meet the statutory trigger. As of 2026, the rate is 4.0%. I'll update this page if that changes. **Categories:** Taxes and Retirement --- ### [Kansas Unemployment Benefits: 2027 Outlook, Current 2026 Amount Up to $637/Week](https://savingtoinvest.com/kansas-unemployment-benefits/) **Published:** January 13, 2021 **Author:** Andy **Content:** ### Key Takeaways - Kansas' maximum weekly unemployment benefit is $637 in 2026, up from $589, following the annual adjustment based on the statewide average weekly wage. - Benefits last up to 26 weeks under standard conditions. - Kansas' partial UI formula uses a 25% earnings disregard — you can earn up to 25% of your WBA per week before your benefit is reduced. - Kansas taxes unemployment benefits as ordinary state income at graduated rates up to 5.7%; federal taxes also apply. - Beyond UI, unemployed Kansans can access KanCare (Medicaid — Kansas has NOT fully expanded Medicaid under the ACA, though partial expansion exists), CHIP, SNAP, LIHEAP energy assistance, and career services through Kansas Workforce Centers statewide. Kansas’ unemployment insurance program — managed by the [Kansas Department of Labor (KDOL)](https://www.dol.ks.gov/) — increased its maximum weekly benefit to $637 in 2026, up from $589 in 2025. Kansas sets its maximum based on the statewide average weekly wage, adjusted annually, so another increase for 2027 is likely — KDOL typically confirms the new figure toward the end of the year. Note that Kansas is one of the few remaining states that has not fully expanded Medicaid under the ACA, which limits health coverage options for low-income unemployed adults. See how Kansas compares at [SavingToInvest’s state unemployment benefits guide](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/). Covered in this Article: [Toggle](#) - [2026 Benefit Amounts and Duration](#2026_Benefit_Amounts_and_Duration) - [Who Qualifies](#Who_Qualifies) - [Partial Unemployment for Part-Time Workers and Reduced Hours](#Partial_Unemployment_for_Part-Time_Workers_and_Reduced_Hours) - [Tax Implications of Kansas Unemployment Benefits](#Tax_Implications_of_Kansas_Unemployment_Benefits) - [How to File](#How_to_File) - [Other Benefits Available to Unemployed Kansas Workers](#Other_Benefits_Available_to_Unemployed_Kansas_Workers) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## 2026 Benefit Amounts and Duration Kansas’ **maximum weekly benefit is $637** for 2026. The minimum is $147. Benefits last up to **26 weeks**. Your Weekly Benefit Amount is calculated at approximately **55% of your average weekly wage** during the base period, subject to the $637 cap. The base period is the first four of the last five completed calendar quarters before filing. Things can change — I’ll update this page when any adjustments are announced. [Subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## Who Qualifies To receive Kansas UI benefits, you must: - Have earned wages in covered employment during the base period - Have wages in your **highest quarter of at least $1,885** - Have total base period wages of at least **30× your WBA** - Have lost your job through no fault of your own (layoff, reduction in force, business closure) - Be physically able and available for suitable full-time work - Actively seek employment — Kansas requires documentation of job-search contacts Register with KansasWorks at kansasworks.com and certify weekly through the KDOL portal at GetKansasBenefits.gov or by phone at 785-291-6100. Workers fired for misconduct or who quit without good cause are generally ineligible. Kansas recognizes good cause for domestic violence, medical conditions, and significant employer-imposed changes to employment conditions. ## Partial Unemployment for Part-Time Workers and Reduced Hours Kansas’ partial UI formula: the earnings disregard is **25% of your WBA** per week. Earnings above that threshold reduce your benefit dollar-for-dollar. For example, if your WBA is $500 (25% = $125) and you earn $250: - Disregard: $125 - Deductible earnings: $250 − $125 = $125 - Adjusted WBA: $500 − $125 = $375 Workers on reduced hours can file for partial benefits. All gross earnings must be reported when certifying each week. ## Tax Implications of Kansas Unemployment Benefits Kansas taxes unemployment compensation as ordinary income at graduated state rates from **3.1% to 5.7%** for 2026. Most UI recipients will pay the top 5.7% rate on most of their benefits (the 5.7% rate applies to income above $30,000 for single filers, $60,000 for joint). Kansas has been slowly reducing income tax rates; the top rate dropped from 5.7% in recent legislation but remains in that range for 2026. At the **federal level**, UI is taxable as ordinary income. You’ll receive Form 1099-G from KDOL by January 31 — my [IRS refund schedule guide](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) and [tax filing dates guide](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) cover the key dates. You can elect federal and Kansas state withholding from your weekly payments when certifying. Withholding is recommended. ## How to File File your claim at **GetKansasBenefits.gov** or call 785-291-6100. You’ll need your Social Security number, complete work history for the past 18 months, and bank account details for direct deposit or a debit card. There is a **one-week waiting period** before benefits start. After approval, certify weekly through the KDOL portal — report all earnings and work-search activities each week. If your claim is denied, you have **16 days** from the mailing date to file an appeal. ## Other Benefits Available to Unemployed Kansas Workers **KanCare (Medicaid)**: Kansas has NOT fully expanded Medicaid under the ACA. However, KanCare covers certain low-income adults: parents with children, pregnant women, the elderly, and individuals with disabilities. Childless adults generally do not qualify for KanCare Medicaid in Kansas. Apply at accessks.dccca.org or your local DCF office. **CHIP**: Kansas’ HealthWave program provides low-cost health coverage for children in households up to 238% of the federal poverty level. Apply through KanCare at accessks.dccca.org. **SNAP (Food Assistance)**: Kansas SNAP provides monthly food benefits via EBT — see my [full Kansas SNAP guide](https://savingtoinvest.com/kansas-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) for current amounts and deposit dates. Apply at accessks.dccca.org or your local Department for Children and Families (DCF) office. Net income limits are at 100% of the federal poverty level. **LIHEAP (Energy Assistance)**: Kansas’ LIEAP program provides assistance with home heating costs. Apply through your local community action agency. Contact the Kansas Energy Assistance Program at dcf.ks.gov for a provider list. **Kansas Workforce Centers**: Kansas’ Workforce Center network provides free job placement, career services, skills training, resume help, and access to WIOA-funded training programs. Find your nearest center at kansasworks.com. Participating in career center activities helps satisfy UI work-search requirements. ## Looking Ahead: 2027 Outlook Kansas’ benefit maximum adjusts every year based on statewide wage growth, so the 2027 rate will depend on how wages moved through 2026 — expect KDOL to confirm the new figure late in the year, the same way the $637 max was set for 2026. Medicaid expansion has been debated in the Kansas legislature for several years and hasn’t passed — if it does, it would significantly improve health coverage for unemployed Kansans without dependents, since KanCare currently excludes most childless adults. Worth watching if you’re one of the Kansans this would affect. I’ll update this page when either of these changes. ## Common Issues to Watch Out For **Missing documented work-search contacts.** Kansas requires documentation of your job-search activity, and KDOL can ask for it retroactively. Save the company name, date, and how you applied for every contact as you go — a missing record is one of the more common reasons a certification gets questioned after the fact. **Assuming KanCare covers you.** Because Kansas hasn’t expanded Medicaid, childless adults generally don’t qualify for KanCare regardless of how low their income drops after a layoff. Check eligibility before counting on it, and look into ACA marketplace plans at healthcare.gov if you don’t qualify. **Missing the 16-day appeal window.** If you’re denied, you have 16 days from the mailing date to appeal. Don’t wait to gather every document first — file the appeal, then assemble your evidence. --- Frequently Asked Questions QWhat is Kansas' maximum weekly unemployment benefit for 2026? A$637 per week, up from $589 in 2025. Benefits last up to 26 weeks. Kansas' maximum is based on the statewide average weekly wage, adjusted annually. QDoes Kansas tax unemployment benefits? AYes. Kansas taxes UI at graduated state rates from 3.1% to 5.7%. Federal taxes also apply. Elect withholding from your KDOL weekly payments to avoid a year-end tax bill. QHow does partial unemployment work in Kansas? AKansas disregards 25% of your WBA from weekly gross earnings. Earnings above that reduce your benefit dollar-for-dollar. Report all earnings when certifying each week at GetKansasBenefits.gov. QDoes Kansas have Medicaid for unemployed adults? AKansas has NOT expanded Medicaid under the ACA. Childless adults generally do not qualify for KanCare. Only parents with children, pregnant women, and certain disabled individuals qualify. Apply at accessks.dccca.org if you have children. QWhat work-search activities does Kansas require? AKansas requires documented job-search contacts each week. Register at KansasWorks (kansasworks.com) and log your activities. KDOL may request verification of your job contacts. **Categories:** Government Rebates and Payments --- ### [Iowa Unemployment Benefits in 2026–2027: Up to $790/Week, Partial UI Rules, Taxes, and What Else Is Available](https://savingtoinvest.com/iowa-unemployment-benefits/) **Published:** June 20, 2026 **Author:** Andy **Content:** ### Key Takeaways - Iowa's maximum weekly unemployment benefit rose on July 5, 2026 to $644 for claimants with no dependents, up to $790 with four or more dependents - up from $763 at the top end last year. - The minimum weekly benefit also rose, now ranging from $96 to $116 depending on dependents. - Benefits last up to 26 weeks under normal economic conditions. - Iowa's partial UI formula lets you earn wages up to 25% of your WBA before benefits start to reduce. - Iowa taxes unemployment benefits at its flat 3.8% income tax rate for 2026; federal taxes also apply, and you can elect withholding through IowaWORKS. Iowa’s unemployment insurance program — managed by [Iowa Workforce Development (IWD)](https://workforce.iowa.gov/) — now pays up to **$790 per week** for claimants with dependents, following the state’s annual increase effective the benefit week of **July 5, 2026**. Iowa’s benefit is above average for the Midwest, and the state’s relatively flat cost of living outside of Des Moines means the UI program provides meaningful income replacement for many workers. Covered in this Article: [Toggle](#) - [2026–2027 Benefit Amounts and Duration](#2026%E2%80%932027_Benefit_Amounts_and_Duration) - [Who Qualifies](#Who_Qualifies) - [Partial Unemployment for Part-Time Workers and Reduced Hours](#Partial_Unemployment_for_Part-Time_Workers_and_Reduced_Hours) - [Tax Implications of Iowa Unemployment Benefits](#Tax_Implications_of_Iowa_Unemployment_Benefits) - [How to File](#How_to_File) - [Other Benefits Available to Unemployed Iowa Workers](#Other_Benefits_Available_to_Unemployed_Iowa_Workers) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## 2026–2027 Benefit Amounts and Duration Iowa adjusts its maximum weekly benefit every July based on the statewide average weekly wage. For the fiscal year starting July 5, 2026, per the [official IWD announcement](https://workforce.iowa.gov/announcement/2026-06-30/iowans-unemployment-benefits-increase-starting-july-5): DependentsMinimum Weekly BenefitMaximum Weekly Benefit0$96$6444 or more$116$790 The prior year’s top maximum was $763, so this is roughly a $27 bump at the high end. Claims filed before July 5, 2026 keep the weekly rate set when they were filed. Benefits last up to **26 weeks**. Your Weekly Benefit Amount is calculated from your highest base-period quarter wages, divided by 19 to 23 depending on your number of dependents, subject to the state cap. The base period is the first four of the last five completed calendar quarters before your claim’s effective date. See how **Iowa UI benefits** compare to other states at our [national unemployment benefits comparison](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/) table and [Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get the latest updates as Iowa’s benefit rules evolve. ## Who Qualifies To receive Iowa UI benefits, you must: - Have earned wages in **at least two quarters** of the base period - Meet the minimum qualifying wage thresholds for your highest quarter and total base period (IWD publishes the current figures each July) - Have lost your job through no fault of your own (layoff, reduction in force, business closure) - Be physically able and available to work, and actively seeking new employment Iowa requires three work-search contacts per week and registration with IowaWORKS (iowaworkforcedevelopment.gov). Certify weekly online or by phone. Workers fired for misconduct or who quit without good cause connected to work are generally ineligible. Iowa recognizes domestic violence, medical conditions, and significant employer-imposed changes as potential good cause. ## Partial Unemployment for Part-Time Workers and Reduced Hours Iowa’s partial UI formula uses a **25% of WBA earnings disregard**: wages up to 25% of your weekly benefit are ignored before benefits start to reduce. Wages above that threshold reduce your payment dollar-for-dollar. At the no-dependents maximum of $644, you can earn up to about $161 per week without any impact. Earn $250 and your benefit is reduced by $89, giving you $555 for that week. Workers whose employer reduced their hours can also file for partial benefits, as long as they remain available for full-time work. Report all wages when certifying weekly through the IWD portal. ## Tax Implications of Iowa Unemployment Benefits Iowa taxes unemployment compensation as ordinary income at the **state level**. Iowa moved to a **flat income tax rate of 3.8%** for 2026 under the state’s multi-year tax reform plan (down from higher graduated rates in prior years). All UI recipients pay this same flat rate on their UI benefits. At the **federal level**, UI is taxable as ordinary income. You’ll receive Form 1099-G from IWD each January — my [IRS refund schedule guide](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) and [tax filing dates guide](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) cover the key dates. You can elect federal withholding at 10% and Iowa state withholding from your weekly payments through the IowaWORKS portal. Iowa’s flat rate makes it easy to calculate — roughly $24 per week in state tax at the $644 maximum. ## How to File File your claim at **uiclaims.iwd.iowa.gov** or call 866-239-0843. You’ll need your Social Security number, work history for the past 18 months, and bank account information for direct deposit. There is a **one-week waiting period** before benefits start. Certify weekly through the online portal or by phone. Report all wages and work-search contacts. If denied, you have **10 days** from the date of the determination to appeal to the Employment Appeal Board. ## Other Benefits Available to Unemployed Iowa Workers **Iowa Health and Wellness Plan (Medicaid)**: Iowa expanded Medicaid through the Iowa Health and Wellness Plan, covering adults up to 138% of the federal poverty level (about $20,120 for a single person in 2026). Apply at dhs.iowa.gov or at your local Department of Human Services office. **hawk-i (CHIP)**: Iowa’s hawk-i program provides low-cost or free health coverage for children in households earning up to 302% of the federal poverty level — one of the more generous CHIP income thresholds in the country. Apply at dhs.iowa.gov. **SNAP (Food Assistance)**: Iowa’s SNAP program provides monthly food benefits via EBT card — see my [full Iowa SNAP guide](https://savingtoinvest.com/iowa-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) for current amounts and deposit dates. Income limits are at 130% of the federal poverty level for most households. Apply at dhs.iowa.gov or your local DHS office. Note that SNAP work requirements expanded in 2026, so check the current rules if you’re between jobs. **LIHEAP (Low Income Home Energy Assistance)**: Iowa’s LIHEAP helps income-eligible households pay heating and cooling costs. Apply through your local Community Action Agency — find yours at dcaa.iowa.gov. **IowaWORKS Centers**: Iowa’s network of IowaWORKS Centers offers free job search assistance, resume help, career coaching, and access to WIOA training grants. Workers from large layoffs may qualify for Rapid Response services or Trade Adjustment Assistance. ## Looking Ahead: 2027 Outlook Iowa’s next annual benefit adjustment lands in **July 2027** (fiscal year 2028), calculated from the state’s average weekly wage — IWD typically announces the new amounts in late June. If Iowa wages keep growing at recent rates, expect another modest increase to both the minimum and maximum. Iowa’s income tax reform is also ongoing — the flat 3.8% rate for 2026 is part of a phased reduction, and the rate may decline further, which would slightly reduce the state tax bite on your UI benefits. I’ll update this page when the FY2028 amounts are announced. For current rates, claim status, and program information, go to **iowaworkforcedevelopment.gov** or call 866-239-0843. ## Common Issues to Watch Out For **Missing the mandatory work-search documentation.** Iowa requires three work-search contacts a week, and IWD can ask you to produce records retroactively. Save the company name, date, and how you applied for every contact as you go — a missing record is one of the more common reasons a certification gets questioned after the fact. **Filing right around the July rate change.** Because Iowa’s maximum resets every July 5th, claims filed just before that date lock in the lower prior-year rate for the life of the claim, while claims filed just after get the new rate. If your layoff timing is flexible and you’re near the cutoff, it’s worth knowing which side of it you land on. **Missing the 10-day appeal window.** If you’re denied, you have just 10 days from the date of the determination to appeal to the Employment Appeal Board — one of the shorter windows in the country. Don’t wait to gather every document first; file the appeal, then assemble your evidence. --- Frequently Asked Questions QWhat is Iowa's maximum weekly unemployment benefit for 2026-2027? AEffective July 5, 2026, the maximum ranges from $644 (no dependents) to $790 (four or more dependents), lasting up to 26 weeks. Your WBA is based on your highest base-period quarter wages divided by 19-23 depending on dependents, up to the cap. QWhen did Iowa's unemployment benefits last increase? AThe benefit week beginning July 5, 2026. Iowa adjusts amounts every July based on the statewide average weekly wage. Claims filed before that date keep their original weekly rate. QDoes Iowa tax unemployment benefits? AYes. Iowa taxes UI as ordinary income at a flat 3.8% rate for 2026. Federal taxes also apply. You can elect both federal and Iowa withholding through the uiclaims.iwd.iowa.gov portal. QHow does partial unemployment work in Iowa? AIowa allows you to earn up to 25% of your WBA per week before benefits are reduced. Wages above that threshold reduce your payment dollar-for-dollar. At the $644 maximum, you can earn up to about $161/week without any reduction. QDoes Iowa have Medicaid for unemployed adults? AYes - Iowa expanded Medicaid (Iowa Health and Wellness Plan) to cover adults up to 138% of the federal poverty level. With only UI as income, many claimants will qualify for free coverage. Apply at dhs.iowa.gov. QWhat other assistance is available to unemployed Iowa workers? AApply for Medicaid, SNAP, and hawk-i through dhs.iowa.gov. Apply for LIHEAP through your local Community Action Agency (dcaa.iowa.gov). Visit IowaWORKS Centers for free career services and WIOA retraining grants. **Categories:** Taxes and Retirement --- ### [Indiana Unemployment Benefits: 2027 Outlook, Current 2026 Amount Up to $390/Week](https://savingtoinvest.com/indiana-unemployment-benefits/) **Published:** June 20, 2026 **Author:** Andy **Content:** ### Key Takeaways - Indiana's maximum weekly unemployment benefit is $390 in 2026 — one of the lower caps among Midwestern states, though Indiana's cost of living is generally moderate. - Benefits last up to 26 weeks under standard economic conditions. - Indiana's partial UI formula allows you to earn wages up to 20% of your WBA before benefits start to reduce — a modest but workable disregard. - Indiana taxes unemployment benefits as ordinary state income at a flat rate of 3.05%; federal taxes also apply, and you can elect withholding through the Uplink portal. - Beyond UI, unemployed Hoosiers can access Medicaid through the HIP 2.0 program (Indiana's ACA alternative), SNAP, LIHEAP energy assistance, and career services through WorkOne centers. Indiana’s unemployment insurance program — managed by the [Department of Workforce Development (DWD)](https://www.in.gov/dwd/) — offers up to $390 per week. That 2026 maximum is locked in; I haven’t seen a legislative push to raise it for 2027, even though it’s trailed inflation for years. Indiana has a relatively low maximum benefit for the Midwest, though the state’s lower cost of living softens that somewhat. Indiana also has a unique Medicaid program (HIP 2.0) that differs from standard Medicaid expansion. For a full state-by-state comparison, see [SavingToInvest’s unemployment benefits guide](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/). Covered in this Article: [Toggle](#) - [2026 Benefit Amounts and Duration](https://savingtoinvest.com/?p=71727/#2026_Benefit_Amounts_and_Duration) - [Who Qualifies](https://savingtoinvest.com/?p=71727/#Who_Qualifies) - [Partial Unemployment for Part-Time Workers and Reduced Hours](https://savingtoinvest.com/?p=71727/#Partial_Unemployment_for_Part-Time_Workers_and_Reduced_Hours) - [Tax Implications of Indiana Unemployment Benefits](https://savingtoinvest.com/?p=71727/#Tax_Implications_of_Indiana_Unemployment_Benefits) - [How to File](https://savingtoinvest.com/?p=71727/#How_to_File) - [Other Benefits Available to Unemployed Indiana Workers](https://savingtoinvest.com/?p=71727/#Other_Benefits_Available_to_Unemployed_Indiana_Workers) - [Looking Ahead: 2027 Outlook](https://savingtoinvest.com/?p=71727/#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](https://savingtoinvest.com/?p=71727/#Common_Issues_to_Watch_Out_For) ## 2026 Benefit Amounts and Duration Indiana’s **maximum weekly benefit is $390** for 2026. The minimum is $37. Benefits last up to **26 weeks**. Your Weekly Benefit Amount is calculated at **5% of your total base period wages** divided by the number of base period quarters in which wages were earned, subject to the state cap. The base period is the first four of the last five completed calendar quarters before filing. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates as Indiana’s unemployment rules evolve.* ## Who Qualifies To receive Indiana UI benefits, you must: - Have earned wages in **at least two quarters** of the base period - Have total base period wages of at least **1.5× your highest quarter wages** - Have wages in your **highest quarter of at least $2,500** - Have lost your job through no fault of your own (layoff, reduction in force, plant closure) - Be physically able and available to work, and actively seeking new employment Indiana requires claimants to make a minimum of three work-search contacts per week and register with Indiana’s employment services. Certify weekly through the Uplink Claimant Self-Service portal. Workers fired for just cause or who quit without good cause are generally ineligible. Indiana recognizes domestic violence situations, medically verified conditions, and major employer-imposed job changes as potential good cause. ## Partial Unemployment for Part-Time Workers and Reduced Hours Indiana uses a **20% of WBA earnings disregard**: wages up to 20% of your weekly benefit are ignored before benefits start to reduce. Wages above that threshold are deducted dollar-for-dollar. At the maximum benefit of $390, you can earn up to $78 per week without any reduction. Earn $150 and your benefit is reduced by $72, giving you $318 for that week. Workers whose hours were reduced by their employer can file for partial benefits as long as they remain available for full-time work and continue job-searching. Report all wages when certifying weekly through Uplink. ## Tax Implications of Indiana Unemployment Benefits Indiana taxes unemployment compensation as ordinary income at the **state level**. Indiana uses a **flat income tax rate of 3.05%** for 2026 (the rate has been declining gradually under a multi-year reduction schedule). Most UI recipients will pay exactly this 3.05% rate on their UI income. Note that Indiana’s counties also levy local income taxes averaging around 1–2%, so your total state+local rate may be 4–5% depending on where you live. At the **federal level**, UI is taxable as ordinary income. You’ll receive Form 1099-G from DWD each January — my [IRS refund schedule guide](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) and [tax filing dates guide](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) cover the key dates. You can elect federal withholding at 10% from your weekly payments through the Uplink portal. Given Indiana’s lower flat rate, a relatively small state withholding covers most claimants’ state liability. ## How to File File your claim at **uplink.in.gov** or call 800-891-6499. You’ll need your Social Security number, work history for the past 18 months, and bank account details for direct deposit or the DWD debit card. There is a **one-week waiting period** before benefits start. After approval, certify weekly through the Uplink portal — typically each week by Sunday. Report wages and job-search contacts. If your claim is denied, you have **18 days** from the mailing date of the determination to appeal to the Unemployment Insurance Review Board. ## Other Benefits Available to Unemployed Indiana Workers **Indiana Medicaid — HIP 2.0 (Healthy Indiana Plan)**: Indiana took an alternative path to Medicaid expansion through the Healthy Indiana Plan 2.0. Adults earning up to 138% of the federal poverty level can qualify, but most enrollees pay small monthly contributions (HIP Plus) to maintain coverage with full benefits. Those who don’t pay contributions are enrolled in HIP Basic, which has limited coverage. Apply at fssabenefits.in.gov. **Hoosier Healthwise (CHIP)**: Children in Indiana households earning up to 200% of the federal poverty level can receive health coverage through Hoosier Healthwise. Apply through fssabenefits.in.gov. **SNAP (Food Assistance)**: Indiana’s SNAP program provides monthly food benefits via EBT card — see my [full Indiana SNAP guide](https://savingtoinvest.com/indiana-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) for current amounts and deposit dates. Income limits are set at 130% of the federal poverty level. Apply at fssabenefits.in.gov or your local Division of Family Resources office. **LIHEAP (Low Income Home Energy Assistance Program — LIHEA)**: Indiana’s LIHEAP helps income-eligible households pay heating costs. Apply through your local Community Action Agency — find yours at indianacommunityaction.org. **WorkOne Centers**: Indiana’s WorkOne Centers offer free job search assistance, resume help, career coaching, and access to WIOA training grants. Some workers may qualify for Trade Adjustment Assistance. ## Looking Ahead: 2027 Outlook Indiana’s UI benefit maximum has trailed inflation for several years, and I haven’t seen a specific legislative proposal to raise it for 2027. The state’s flat income tax rate has been on a scheduled multi-year reduction path, though, which should modestly lower your UI tax burden regardless of what happens with the benefit cap. Watch for DWD announcements on any changes to the benefit maximum or the Uplink portal — nothing is currently scheduled, but I’ll update this page if that changes. ## Common Issues to Watch Out For **Missing the mandatory work-search contacts.** Indiana requires three work-search contacts a week, and DWD can ask you to document them retroactively. Save the company name, date, and how you applied for every contact as you go — a missing record is one of the more common reasons a certification gets questioned after the fact. **Underestimating the partial UI earnings disregard.** Indiana only disregards wages up to 20% of your WBA — a lower threshold than many states. If you pick up part-time work while collecting, run the math first; earnings above that 20% cutoff reduce your benefit dollar-for-dollar. **Missing the 18-day appeal window.** If you’re denied, you have 18 days from the mailing date of the determination to appeal to the Unemployment Insurance Review Board. Don’t wait to gather every document first — file the appeal, then assemble your evidence. --- Frequently Asked Questions QWhat is Indiana's maximum weekly unemployment benefit for 2026? AThe maximum is $390 per week, lasting up to 26 weeks. Your WBA is calculated at 5% of your total base period wages divided by quarters with wages earned, up to the state cap. QDoes Indiana tax unemployment benefits? AYes. Indiana taxes UI as ordinary income at a flat 3.05% state rate for 2026. County taxes may add another 1–2% depending on your location. Federal taxes also apply. You can elect withholding through the Uplink portal at uplink.in.gov. QHow does partial unemployment work in Indiana? AIndiana disregards wages up to 20% of your WBA. Wages above that threshold reduce your benefit dollar-for-dollar. At the maximum benefit of $390, you can earn up to $78/week before any reduction. QWhat is Indiana's HIP 2.0 Medicaid program? AHIP (Healthy Indiana Plan) 2.0 is Indiana's alternative to standard Medicaid expansion. It covers adults up to 138% of FPL but requires small monthly premium contributions (HIP Plus) for full benefits. Those who don't contribute get HIP Basic with more limited coverage. Apply at fssabenefits.in.gov. QWhat is the work-search requirement in Indiana? AIndiana requires three work-search contacts per week. Register with Indiana's job services and document your contacts — DWD may request verification. WorkOne Centers count toward work-search activities. QWhat other assistance is available to unemployed Indiana workers? AApply for HIP 2.0 Medicaid, SNAP, and Hoosier Healthwise (CHIP) at fssabenefits.in.gov. Apply for LIHEAP heating assistance through your local Community Action Agency (indianacommunityaction.org). Visit WorkOne Centers for free career services and WIOA training grants. **Categories:** Taxes and Retirement --- ### [Illinois Unemployment Benefits: 2027 Outlook, Current 2026 Amount Up to $859/Week With Dependents](https://savingtoinvest.com/illinois-unemployment-benefits/) **Published:** May 9, 2020 **Author:** Andy **Content:** ### Key Takeaways - Illinois pays up to $628 per week in unemployment benefits in 2026 — or up to $859 per week if you have dependent children, one of the highest dependent allowances in the country. - Benefits last up to 26 weeks under regular state UI, and Illinois does NOT tax unemployment benefits at the state level. - Part-time workers and those with reduced hours can collect partial unemployment — you can earn wages up to half your weekly benefit amount before your payment starts to decrease. - File through the Illinois Department of Employment Security (IDES) at ides.illinois.gov — most claims are handled online and you certify weekly. - Unemployed Illinois workers can also access Medicaid, SNAP food benefits, All Kids health coverage for children, and energy assistance through the Low Income Home Energy Assistance Program (LIHEAP). If you’ve lost your job or had your hours cut in Illinois, the state’s unemployment insurance system offers some of the stronger benefits in the Midwest. The maximum weekly benefit runs to $628 for individual claimants — and jumps to $859 per week if you have dependent children. Those 2026 numbers are locked in; here’s what to know about rates, eligibility, partial UI rules, taxes, and what other programs you can stack on top, plus what I’m watching for a possible 2027 adjustment. Covered in this Article: [Toggle](#) - [2026 Benefit Amounts and Duration](#2026_Benefit_Amounts_and_Duration) - [Who Qualifies](#Who_Qualifies) - [Partial Unemployment for Part-Time Workers and Reduced Hours](#Partial_Unemployment_for_Part-Time_Workers_and_Reduced_Hours) - [Tax Implications of Illinois Unemployment Benefits](#Tax_Implications_of_Illinois_Unemployment_Benefits) - [How to File](#How_to_File) - [Other Benefits Available to Unemployed Illinois Workers](#Other_Benefits_Available_to_Unemployed_Illinois_Workers) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## 2026 Benefit Amounts and Duration The [Illinois Department of Employment Security (IDES)](https://ides.illinois.gov/) sets the maximum weekly benefit amount at **$628 per week** for individuals and **$859 per week** for workers with qualifying dependents as of 2026. That dependents boost is among the most generous in the country. Benefits run for up to **26 weeks**, giving you about six months of income support while you job search. Your specific weekly amount is based on your earnings during the base period — typically the first four of the last five completed calendar quarters before you file. IDES calculates your Weekly Benefit Amount (WBA) as roughly 47% of your average weekly wage, subject to the minimums and maximums set for the year. The minimum weekly benefit is $51, though most claimants receive significantly more if they had a steady work history. To get your estimate, use the IDES Benefits Calculator at ides.illinois.gov before filing. See how **Illinois UI benefits** compare to other states at our [national unemployment benefits comparison](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/) table and [Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get the latest updates as Illinois’s benefit rules evolve. ## Who Qualifies To receive Illinois unemployment benefits, you must: - Have earned enough during your base period (IDES requires wages in at least two quarters, with total base period wages of at least 1.6 times your highest quarter earnings) - Have lost your job through no fault of your own — layoff, position elimination, or company closure all qualify - Be able to work, available for work, and actively seeking employment - Register with Illinois WorkNet as part of your benefit requirements Workers who quit without good cause, were fired for misconduct, or are on a scheduled return date generally don’t qualify. However, “good cause” for quitting can include unsafe working conditions, harassment, or a major change in job terms — IDES decides these case by case. ## Partial Unemployment for Part-Time Workers and Reduced Hours Illinois has a meaningful partial unemployment provision. If you’re still working but your hours were cut, or you took part-time work while collecting UI, you don’t automatically lose all your benefits. Illinois uses a **50% earnings disregard**: you can earn up to half your Weekly Benefit Amount in wages without it affecting your payment. Earnings above that threshold are deducted dollar-for-dollar from your weekly benefit. So if your WBA is $400 and you earn $150 through part-time work, you subtract the amount over $200 (that’s $150 − $200 = −$50, so no deduction) — your full $400 is paid. But if you earn $350, you’d lose $150 in benefits. Part-time workers who lose their part-time job, or whose part-time hours are significantly cut by the employer, may also file for regular UI if their other wages during the base period meet the earnings thresholds. Illinois doesn’t cap the number of part-time hours you can work and still certify — what matters is the dollar amount earned against your WBA. You must report all wages earned during each week when you certify, including tips and self-employment income. Underreporting is fraud and carries repayment plus penalties. ## Tax Implications of Illinois Unemployment Benefits Here’s a significant benefit most people miss: **Illinois does not tax unemployment compensation at the state level**. Under Illinois law (35 ILCS 5/203), unemployment benefits are explicitly excluded from Illinois adjusted gross income. You won’t owe any Illinois income tax on your UI payments. At the **federal level**, unemployment is taxable as ordinary income. The IRS treats UI the same as wages. You should receive Form 1099-G from IDES each January showing what you were paid during the prior year — my [IRS refund schedule guide](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) and [tax filing dates guide](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) cover the key dates. You can choose to have federal income tax withheld at 10% from your weekly benefit payments — elect this during the initial claim or update it through your IDES account at any time. If you don’t withhold, set aside roughly 10–12% of each payment to avoid a surprise tax bill in April. For 2026 filing, if your modified adjusted gross income (MAGI) exceeds $200,000 (single) or $250,000 (married filing jointly), additional surtaxes may apply at the federal level — but those thresholds are rarely relevant to UI recipients. ## How to File File your claim at **ides.illinois.gov**. You’ll need your Social Security number, employment history for the past 18 months (employer names, addresses, dates), and your bank account information if you want direct deposit. Illinois also issues the Illinois Debit Card for UI payments. After filing, expect an initial determination within 3–4 weeks. If approved, you must certify weekly — confirming you’re still unemployed, actively looking for work, and reporting any earnings. Certify online or by phone. There’s a one-week waiting period before benefits begin (the first week you’re eligible but not paid — Illinois waived this during COVID but reinstated it). If your claim is denied, you have 30 days to appeal. IDES holds an informal hearing first, then a formal hearing if needed. Most denials relate to the separation reason, so document your layoff clearly. ## Other Benefits Available to Unemployed Illinois Workers Collecting UI doesn’t disqualify you from other assistance programs, and in some cases losing your job actually makes you newly eligible. **Medicaid / Illinois Medicaid**: Illinois expanded Medicaid under the ACA, so if your income drops below 138% of the federal poverty level (about $20,120 for a single adult in 2026), you likely qualify for free comprehensive health coverage. Apply at ABE.Illinois.gov (Application for Benefits Eligibility). **SNAP (Supplemental Nutrition Assistance Program)**: Illinois residents can get SNAP food benefits based on household income and size — see my [full Illinois SNAP guide](https://savingtoinvest.com/illinois-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) for current amounts and deposit dates. With only UI as income, most households with dependents will qualify. Apply at ABE.Illinois.gov alongside your Medicaid application. **All Kids**: If you have children, Illinois’s All Kids program provides health coverage for kids regardless of immigration status or parental income. Premiums are income-based and start as low as $0. **Low Income Home Energy Assistance Program (LIHEAP)**: Illinois’s LIHEAP program helps pay heating and cooling bills for income-eligible households. Income limits are set at 150% of the federal poverty level, and priority is given to households with children under 6, elderly members, or someone with a disability. Apply through your county’s community action agency. **Illinois WorkNet**: Beyond job listings, Illinois WorkNet connects unemployed workers with retraining grants through the Trade Adjustment Assistance program (if your job was displaced by foreign trade), apprenticeship programs, and skills training funded by the Workforce Innovation and Opportunity Act (WIOA). These training programs are free and don’t count as “earnings” for UI purposes. **Child Care Assistance Program (CCAP)**: If you have young children and are actively job searching, Illinois’s CCAP can subsidize child care costs through your local Child Care Resource and Referral agency. ## Looking Ahead: 2027 Outlook Illinois lawmakers have periodically debated extending the dependent allowance and adjusting the 50% earnings disregard formula — nothing has passed as of this writing, but it’s worth checking back given how often it comes up. IDES updates its benefit table every January, so the 2027 maximum weekly amounts should post at ides.illinois.gov around the same time. The state’s UI trust fund balance has been replenished after pandemic-era borrowing, which is good news for claimants — it removes the fiscal pressure that sometimes pushes states toward benefit cuts, and helps Illinois avoid federal UI tax surcharges on employers for now. I’ll update this page with the 2027 maximums as soon as IDES posts them. ## Common Issues to Watch Out For **Underreporting part-time earnings.** Illinois’s 50% earnings disregard is generous, but you still have to report every dollar earned each week, including tips and self-employment income. Underreporting is treated as fraud and carries repayment plus penalties — even an honest mistake can trigger an audit. **Missing the one-week waiting period.** Illinois reinstated its unpaid waiting week after waiving it during COVID. That first eligible week won’t be paid, so don’t assume something’s wrong with your claim if the first payment is delayed by a week. **Missing the 30-day appeal window.** If you’re denied, you have 30 days to appeal — longer than many states, but document your separation reason clearly from the start, since most denials trace back to that. --- Frequently Asked Questions QWhat is the maximum unemployment benefit in Illinois for 2026? AThe maximum weekly benefit is $628 for individual claimants and $859 per week if you have dependent children. Benefits last up to 26 weeks. Your specific amount depends on your prior earnings. QDoes Illinois tax unemployment benefits? ANo. Illinois explicitly excludes unemployment compensation from state taxable income under Illinois law. You won't owe any Illinois income tax on your UI payments. Federal income tax still applies — UI is taxable at the federal level as ordinary income. QCan I collect Illinois unemployment if I'm working part-time? AYes. Illinois allows you to earn up to 50% of your Weekly Benefit Amount in wages before your benefit is reduced. Amounts above that disregard are deducted dollar-for-dollar. You must report all earnings when you certify each week. QHow long does it take to start receiving Illinois unemployment benefits? AMost claims take 3–4 weeks from filing to first payment. There's a mandatory one-week waiting period before benefits begin. Certify your first week even if you haven't been approved yet, as that waiting week generally cannot be paid retroactively. QWhat other programs can I apply for while on Illinois unemployment? AYou can apply for Medicaid, SNAP food benefits, All Kids health coverage for children, and LIHEAP energy assistance — all through ABE.Illinois.gov. Illinois WorkNet also connects you with free job training programs funded by WIOA and other federal grants. QWhat happens if IDES denies my claim? AYou have 30 days from the date on the determination notice to file an appeal. Most denials are resolved at the first informal hearing level. Document your separation from employment clearly — especially if you were laid off and not terminated for cause. **Categories:** Government Rebates and Payments --- ### [Idaho Unemployment Benefits: 2027 Outlook, Current 2026 Amount Up to $624/Week](https://savingtoinvest.com/idaho-unemployment-benefits/) **Published:** June 20, 2026 **Author:** Andy **Content:** ### Key Takeaways - Idaho's maximum weekly unemployment benefit is $624 in 2026 — a reasonable cap for a state with moderate living costs, though Idaho's rapid population growth has pushed costs up significantly in cities like Boise and Nampa. - Benefits last up to 26 weeks under normal economic conditions. - Idaho's partial UI formula is very restrictive — only $1 per day worked (effectively $5/week or less) is disregarded before benefits start to reduce; additional wages are deducted dollar-for-dollar. - Idaho taxes unemployment benefits as ordinary state income; federal income tax also applies, and you can elect withholding through the iUS portal. - Beyond UI, unemployed Idahoans can access Medicaid (expanded in 2020), CHIP, SNAP, LIHEAP energy assistance, and career services through the Idaho Department of Labor offices. Idaho’s unemployment insurance program — managed by the [Idaho Department of Labor (IDOL)](https://labor.idaho.gov/) — offers up to $624 per week. That 2026 maximum is locked in; I haven’t seen a legislative proposal to raise it for 2027. Idaho is a moderate-benefit state, though its partial UI rules make earning part-time income while collecting benefits particularly difficult. See how Idaho compares to other states at [SavingToInvest’s unemployment benefits state comparison](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/). Covered in this Article: [Toggle](#) - [2026 Benefit Amounts and Duration](#2026_Benefit_Amounts_and_Duration) - [Who Qualifies](#Who_Qualifies) - [Partial Unemployment for Part-Time Workers and Reduced Hours](#Partial_Unemployment_for_Part-Time_Workers_and_Reduced_Hours) - [Tax Implications of Idaho Unemployment Benefits](#Tax_Implications_of_Idaho_Unemployment_Benefits) - [How to File](#How_to_File) - [Other Benefits Available to Unemployed Idaho Workers](#Other_Benefits_Available_to_Unemployed_Idaho_Workers) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## 2026 Benefit Amounts and Duration Idaho’s **maximum weekly benefit is $624** for 2026. The minimum is $72. Benefits last up to **26 weeks**. Your Weekly Benefit Amount is calculated at **1/26th of your wages in your highest base period quarter**, subject to the state cap. The base period is the first four of the last five completed calendar quarters before filing. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates as Idaho’s unemployment rules evolve.* ## Who Qualifies To receive Idaho UI benefits, you must: - Have earned wages in **at least two quarters** of the base period - Have wages in your **highest quarter of at least $1,872** - Have total base period wages of at least **1.25× your highest quarter wages** - Have lost your job through no fault of your own (layoff, plant closure, position eliminated) - Be physically able and available to work, and actively seeking new employment Idaho requires claimants to make work-search contacts each week — typically one contact per week that you claim benefits — and keep records of your efforts. Register with IdahoWorks (idahoworks.com) as part of the process. Workers fired for misconduct or who voluntarily quit without good cause are generally ineligible. Idaho recognizes domestic violence, medically documented conditions, and major employer-imposed job changes as potential good cause situations. ## Partial Unemployment for Part-Time Workers and Reduced Hours Idaho’s partial UI earnings formula is one of the most restrictive in the country. The state disregards only **$1 per day worked** — which works out to $5 per week for a five-day work week, or $7 for a seven-day week. Wages above the $1/day disregard are subtracted dollar-for-dollar from your benefit. In practice, this means almost any part-time work significantly reduces your benefit. If your WBA is $400 and you earn $200 from two days of part-time work, your benefit is reduced by $198 ($200 − $2 = $198), leaving you with $202 for that week. Workers whose employer reduced their hours can file for partial UI, but the low disregard means even modest additional work cuts deeply into the payment. Report all wages and days worked when certifying weekly through the iUS portal. ## Tax Implications of Idaho Unemployment Benefits Idaho taxes unemployment compensation as ordinary income at the **state level**. Idaho has a flat income tax rate of **5.8%** for 2026 (the state moved to a flat rate system in recent years). This flat rate applies to all income levels, including UI benefits. At the **federal level**, UI is taxable as ordinary income. You’ll receive Form 1099-G from IDOL each January — my [IRS refund schedule guide](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) and [tax filing dates guide](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) cover the key dates. You can elect federal withholding at 10% and Idaho state withholding from your weekly payments through the iUS online system at labor.idaho.gov. Given the flat 5.8% state rate, withholding a modest state amount is straightforward to calculate. ## How to File File your claim at **labor.idaho.gov** or call 208-332-3576. You’ll need your Social Security number, work history for the past 18 months, and bank account information for direct deposit. There is a **one-week waiting period** before benefits start. After approval, certify weekly by phone (208-332-8942) or through the online portal. Report days worked, wages earned, and job-search activities each week. If denied, you have **14 days** from the mailing date to appeal to the Idaho Industrial Commission. ## Other Benefits Available to Unemployed Idaho Workers **Idaho Medicaid**: Idaho expanded Medicaid under the ACA in November 2020, following a voter initiative. Adults earning up to 138% of the federal poverty level (about $20,120 for a single person in 2026) can qualify for comprehensive coverage. Apply at healthandwelfare.idaho.gov. **CHIP (Children’s Medicaid)**: Idaho’s Children’s Medicaid program covers children in households earning up to 185% of the federal poverty level. Apply through the Department of Health and Welfare. **SNAP (Food Assistance)**: Idaho’s SNAP program provides monthly food benefits via EBT card — see my [full Idaho SNAP guide](https://savingtoinvest.com/idaho-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) for current amounts and deposit dates. Income limits are at 130% of the federal poverty level. Apply at healthandwelfare.idaho.gov or your local DHW office. **LIHEAP (Low Income Home Energy Assistance)**: Idaho’s LIHEAP helps income-eligible households pay heating costs. Administered through local community action agencies — find yours at the Community Action Partnership of Idaho (cap-idaho.org). **Idaho Department of Labor Offices**: IDOL offices throughout the state provide free job search assistance, resume help, and access to WIOA training programs. Trade Adjustment Assistance is available for workers whose jobs were lost due to foreign trade. ## Looking Ahead: 2027 Outlook Idaho’s rapid population growth — particularly around the Treasure Valley — keeps intensifying pressure on housing costs, and that’s the backdrop for any future push to raise the $624 cap or loosen the partial UI earnings formula. I haven’t seen a specific bill introduced for 2027, but the underlying pressure isn’t going away. Idaho’s Medicaid expansion, approved by voters via Proposition 2 in 2018, remains a periodic target for legislative rollback attempts — worth watching if you’re relying on that coverage alongside UI. I don’t have a specific date to point to for either of these — no vote is currently scheduled — but I’ll update this page if either moves. ## Common Issues to Watch Out For **The $1/day partial UI disregard catching people off guard.** Idaho’s partial UI formula is one of the most restrictive in the country — almost any part-time work cuts deeply into your benefit. If you pick up occasional shifts while collecting, run the math before you assume it’s worth it; you may end up with less than expected. **Not documenting weekly work-search contacts.** IDOL can ask you to produce records of your job search retroactively. Save the company name, date, and how you applied for every contact as you go — a missing record is one of the more common reasons a certification gets questioned after the fact. **Missing the 14-day appeal window.** If you’re denied, you have 14 days from the mailing date to appeal to the Idaho Industrial Commission. Don’t wait to gather every document first — file the appeal, then assemble your evidence. --- Frequently Asked Questions QWhat is Idaho's maximum weekly unemployment benefit for 2026? AThe maximum is $624 per week, lasting up to 26 weeks. Your WBA is calculated at 1/26th of your wages in your highest base period quarter, up to the state cap. QDoes Idaho tax unemployment benefits? AYes. Idaho taxes UI as ordinary income at a flat rate of 5.8% for 2026. Federal income tax also applies. You can elect both state and federal withholding through the iUS portal at labor.idaho.gov. QHow does partial unemployment work in Idaho? AIdaho's disregard is only $1 per day worked — one of the most restrictive in the country. Wages above this minimal threshold reduce your benefit dollar-for-dollar. Even modest part-time income will significantly reduce your UI payment. QDoes Idaho have Medicaid for unemployed adults? AYes — Idaho expanded Medicaid in 2020. Adults up to 138% of the federal poverty level can qualify for free coverage. Apply at healthandwelfare.idaho.gov. QHow many work-search contacts are required in Idaho? AIdaho requires at least one employer contact per week for most claimants. Keep records of all job-search activities — IDOL may request verification. QWhat other assistance is available to unemployed Idaho workers? AApply for Medicaid, SNAP, and CHIP at healthandwelfare.idaho.gov. Apply for LIHEAP heating assistance through your local community action agency (find at cap-idaho.org). Visit Idaho Department of Labor offices for free career services and WIOA training funding. **Categories:** Taxes and Retirement --- ### [Hawaii Unemployment Benefits: 2027 Outlook, Current 2026 Amount Up to $868/Week](https://savingtoinvest.com/hawaii-unemployment-benefits/) **Published:** June 20, 2026 **Author:** Andy **Content:** ### Key Takeaways - Hawaii's maximum weekly unemployment benefit is $868 in 2026 — one of the higher caps in the country, though Hawaii's cost of living is also among the highest nationally. - Benefits last up to 26 weeks, though the effective income replacement is limited by Hawaii's extremely high housing and food costs. - Hawaii's partial UI formula is relatively generous: you can earn wages up to 1/3 of your WBA per week (about $274 at the maximum) before benefits start to reduce. - Hawaii taxes unemployment benefits as ordinary state income at graduated rates up to 11% — one of the highest state income tax rates in the country; federal taxes apply as well. - Beyond UI, unemployed Hawaii residents can access MedQUEST (Medicaid), SNAP, LIHEAP energy assistance, and the unique Hawaii Prepaid Health Care Act which may affect health coverage continuity. Hawaii’s unemployment insurance program — managed by the [Department of Labor and Industrial Relations (DLIR)](https://labor.hawaii.gov/) — provides up to $868 per week. That 2026 maximum adjusts annually based on the state’s average wage, so it’s likely to tick up again for 2027, though DLIR typically doesn’t announce the new figure until late in the year. While the dollar amount is high compared to most states, Hawaii’s exceptionally high cost of living — particularly on Oahu — means UI provides limited real income replacement. See how Hawaii compares to all other states at [SavingToInvest’s unemployment benefits comparison](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/). Covered in this Article: [Toggle](#) - [2026 Benefit Amounts and Duration](#2026_Benefit_Amounts_and_Duration) - [Who Qualifies](#Who_Qualifies) - [Partial Unemployment for Part-Time Workers and Reduced Hours](#Partial_Unemployment_for_Part-Time_Workers_and_Reduced_Hours) - [Tax Implications of Hawaii Unemployment Benefits](#Tax_Implications_of_Hawaii_Unemployment_Benefits) - [How to File](#How_to_File) - [Other Benefits Available to Unemployed Hawaii Workers](#Other_Benefits_Available_to_Unemployed_Hawaii_Workers) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## 2026 Benefit Amounts and Duration Hawaii’s **maximum weekly benefit is $868** for 2026. The minimum is $5. Benefits last up to **26 weeks**. Your Weekly Benefit Amount is calculated at **1/21st of your wages in your two highest-earning base period quarters**, subject to the state cap. The base period is the first four of the last five completed calendar quarters before filing. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates as Hawaii’s unemployment rules evolve.* ## Who Qualifies To receive Hawaii UI benefits, you must: - Have earned wages of at least **$130 in each of 26 weeks** of the base period, OR total base period wages of at least **$400** (a low threshold that makes Hawaii’s initial eligibility accessible) - Have lost your job through no fault of your own (layoff, reduction in force, business closure) - Be physically able and available to work, and actively seeking employment Hawaii requires claimants to make active job-search efforts each week and register with HireNet Hawaii (hirenethawaii.com). A minimum of three work-search contacts per week is expected. Workers fired for misconduct or who quit without good cause connected to their work are generally ineligible. Hawaii recognizes good cause for domestic violence situations, medically documented conditions, or substantial employer-imposed job changes. ## Partial Unemployment for Part-Time Workers and Reduced Hours Hawaii’s partial UI formula allows you to earn wages up to **1/3 of your WBA** per week without any reduction. Wages above that threshold reduce your benefit dollar-for-dollar. At the maximum benefit of $868, you can earn up to approximately $274 per week before your benefit is affected. For example, if your WBA is $600, you can earn up to $200 without impact. Earn $280 and your benefit drops by $80, giving you $520 that week. Workers whose hours were reduced by their employer — not fully eliminated — can also file for partial UI, as long as they remain available for full-time work. ## Tax Implications of Hawaii Unemployment Benefits Hawaii taxes unemployment compensation as ordinary income at the **state level**. Hawaii has one of the highest state income tax rate structures in the country — graduated rates range from 1.4% up to **11%** for the highest income brackets. Most UI recipients will pay in the 6.4%–8.25% range depending on total income for the year. At the **federal level**, UI is taxable as ordinary income. You’ll receive Form 1099-G from DLIR each January — my [IRS refund schedule guide](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) and [tax filing dates guide](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) cover the key dates. You can elect federal withholding at 10% through the DLIR UI portal. Given Hawaii’s high state income tax, also electing state withholding is strongly advisable. ## How to File File your claim at **huiclaims.hawaii.gov** or call 808-762-5751 (Oahu) or 800-983-2520 (neighbor islands). You’ll need your Social Security number, work history for the past 18 months, and bank account details for direct deposit. There is a **one-week waiting period** before benefits start. After approval, certify weekly through the online portal. Report all wages and work-search activities. If your claim is denied, you have **10 days** from the mailing date of the determination to appeal. ## Other Benefits Available to Unemployed Hawaii Workers **MedQUEST (Medicaid)**: Hawaii expanded Medicaid under the ACA. Adults earning up to 138% of the federal poverty level can qualify for comprehensive coverage through MedQUEST. Apply at mybenefits.hawaii.gov or through the Department of Human Services. **Hawaii Prepaid Health Care Act (HPHCA)**: Hawaii’s unique Prepaid Health Care Act requires most employers to provide health insurance coverage to employees working 20+ hours per week. If you were receiving employer health coverage, you may be eligible for continuation coverage under HPHCA — different from and potentially more affordable than federal COBRA. **SNAP (Food Assistance)**: Hawaii’s SNAP program provides monthly food benefits via EBT card — see my [full Hawaii SNAP guide](https://savingtoinvest.com/hawaii-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) for current amounts and deposit dates. Given Hawaii’s high food costs, SNAP benefits are particularly valuable for eligible households. Apply through the Department of Human Services at mybenefits.hawaii.gov. **LIHEAP (Energy Assistance)**: Hawaii administers LIHEAP funding for utility cost assistance, including electricity costs associated with cooling. Apply through the Department of Community Services. **WorkHawaii / American Job Centers**: The WorkHawaii network offers free job search assistance, resume help, and access to WIOA training grants. Services are available on all major islands. ## Looking Ahead: 2027 Outlook Hawaii’s UI maximum benefit adjusts every year based on the state’s average weekly wage, so the $868 cap for 2026 is all but certain to rise again for 2027 — DLIR typically confirms the new figure late in the year, close to when it takes effect. There’s no separate legislative fight to track here; it’s a formula, not a bill. The bigger structural issue — Hawaii’s cost of living outpacing the WBA cap even as it rises, particularly for housing on Oahu — isn’t something the annual wage-based adjustment is designed to fix, and I haven’t seen a legislative push aimed specifically at closing that gap. I’ll post the updated 2027 maximum here as soon as DLIR announces it. ## Common Issues to Watch Out For **Overpayment notices and waivers.** If DLIR later determines you were paid more than you should have been — a common trigger is a late employer wage report or an error on a certification — you’ll get an overpayment notice. Non-fraud overpayments can often be waived or set up on a repayment plan; fraud overpayments generally can’t be waived and carry a penalty. If you get one, don’t ignore it — respond by the deadline and ask about a waiver. **Missing the HireNet Hawaii registration.** DLIR requires registering with HireNet Hawaii (hirenethawaii.com) as a condition of eligibility, separate from filing your claim. I’ve seen claims flagged or delayed because this registration step got skipped. **Missing the 10-day appeal window.** Hawaii gives you only 10 days from the mailing date of a denial to appeal — one of the shortest windows in the country. If you’re denied, file the appeal first and gather supporting documentation after. --- Frequently Asked Questions QWhat is Hawaii's maximum weekly unemployment benefit for 2026? AThe maximum is $868 per week, lasting up to 26 weeks. Your WBA is based on 1/21st of your wages in your two highest base period quarters, up to the state cap. QDoes Hawaii tax unemployment benefits? AYes, and at a high rate. Hawaii's state income tax goes up to 11%, and most UI recipients will pay 6–8% depending on total annual income. Federal taxes also apply. Electing withholding for both federal and state is advisable. QHow does partial unemployment work in Hawaii? AHawaii allows you to earn up to 1/3 of your WBA per week without any reduction. At the maximum of $868, that's about $274/week. Wages above the 1/3 threshold reduce your benefit dollar-for-dollar. QWhat is the Hawaii Prepaid Health Care Act and how does it affect me? AHawaii requires most employers to provide health coverage to workers putting in 20+ hours per week. If you had employer coverage, you may qualify for HPHCA continuation coverage — potentially more affordable than standard COBRA. Contact your former employer's HR or the Hawaii Department of Labor for specifics. QDoes Hawaii have Medicaid for unemployed adults? AYes — Hawaii expanded Medicaid (MedQUEST) to cover adults up to 138% of the federal poverty level. With only UI income, most claimants will qualify for free coverage. Apply at mybenefits.hawaii.gov. QWhat other assistance is available to unemployed Hawaii workers? AApply for SNAP and MedQUEST through mybenefits.hawaii.gov. Apply for energy/utility assistance through the Department of Community Services. Visit WorkHawaii centers for free career services and WIOA retraining grants. Check HPHCA continuation coverage options for health insurance. **Categories:** Taxes and Retirement --- ### [Georgia Unemployment Insurance (GDOL): 2027 Outlook, Current 2026 Amount $365/Week for Up to 14 Weeks](https://savingtoinvest.com/georgia-unemployment-benefits/) **Published:** May 2, 2020 **Author:** Andy **Content:** ### Key Takeaways - Georgia's maximum weekly unemployment benefit is $365, with benefits lasting up to 14 weeks in 2026. - The Georgia Department of Labor (GDOL) runs the program. File online at dol.georgia.gov. - Your weekly benefit is calculated as 1/21st of your highest base-period quarter wages, capped at $365. - Georgia has a one-week waiting period before benefits begin. - Georgia's system is among the more restrictive in the Southeast — $365 max and short duration are trade-offs for low employer UI taxes. Georgia’s maximum weekly unemployment insurance benefit is **$365**, and the state provides up to **14 weeks** of regular benefits — one of the shorter durations among larger states. It’s not the most generous program in the country, but it’s also one of the faster and more straightforward systems once you know what to expect. The [Georgia Department of Labor (GDOL)](https://dol.georgia.gov/) runs the program, and most claims are processed entirely online. The $365 cap and 14-week floor are locked in for 2026 — the real question for 2027 is whether Georgia’s unemployment rate climbs enough to trigger the state’s variable-duration formula, covered below. Here’s what 2026 looks like. Covered in this Article: [Toggle](#) - [2026 Georgia Unemployment Insurance Basics](#2026_Georgia_Unemployment_Insurance_Basics) - [Georgia’s Variable Benefit Duration](#Georgias_Variable_Benefit_Duration) - [How Georgia Calculates Your Weekly Benefit](#How_Georgia_Calculates_Your_Weekly_Benefit) - [Who Qualifies for Georgia Unemployment in 2026](#Who_Qualifies_for_Georgia_Unemployment_in_2026) - [How to File for Georgia Unemployment in 2026](#How_to_File_for_Georgia_Unemployment_in_2026) - [Appealing a Georgia UI Denial](#Appealing_a_Georgia_UI_Denial) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Related Resources](#Related_Resources) ## 2026 Georgia Unemployment Insurance Basics **Maximum weekly benefit:** $365 **Minimum weekly benefit:** $55 **Benefit duration:** Up to 14 weeks in 2026 (Georgia uses a variable-duration system tied to its unemployment rate) **Waiting week:** Georgia has a one-week waiting period — the first week of your claim is unpaid, but you still need to file for it. Georgia UI is managed by the **Georgia Department of Labor (GDOL)** and filed at [dol.georgia.gov](https://dol.georgia.gov). ## Georgia’s Variable Benefit Duration This is one thing that makes Georgia different: the number of weeks you can collect is tied to the state’s unemployment rate. Georgia’s formula allows between 14 and 20 weeks, depending on conditions: - Unemployment rate 14 weeks - Rate 6.5%–8.5%: **16 weeks** - Rate > 8.5%: **20 weeks** In 2026, with Georgia’s unemployment rate well below 6.5%, most claimants will receive 14 weeks — the minimum. ## How Georgia Calculates Your Weekly Benefit Georgia uses your **highest base-period quarter** to calculate the weekly benefit amount. The formula is: divide your highest quarter wages by 21. That gives your WBA, capped at $365. For example: - Highest quarter of $7,665 → $7,665 ÷ 21 = $365 (capped at maximum) - Highest quarter of $4,200 → $4,200 ÷ 21 = $200/week Your base period is the first four of the last five completed calendar quarters. To qualify, you need to have earned wages in at least two of those quarters and have total base-period earnings of at least **$1,134** (or $35 per week in at least 2 base period quarters). *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates as Georgia’s unemployment rules evolve.* ## Who Qualifies for Georgia Unemployment in 2026 Standard eligibility: - Lost your job through no fault of your own (layoff, company closure, significant hours reduction) - Worked in Georgia during the base period with sufficient earnings - Able to work, available for work, and actively searching for a new job - Registered with Georgia’s job search system (GeorgiaJobs at employ.georgia.gov) Voluntary quits are disqualifying unless you had good cause — documented medical reasons, domestic violence, or employer-initiated material changes to your job conditions are the main exceptions. **Independent contractors and self-employed workers** are not covered by Georgia’s standard UI. ## How to File for Georgia Unemployment in 2026 - **Online:** [dol.georgia.gov](https://dol.georgia.gov) — this is the main filing portal - **Phone:** 1-877-709-8185 Georgia requires claimants to file an initial claim at their local GDOL Career Center in some situations — check whether your claim requires an in-person visit, though most can be handled fully online. After filing: 1. **Register with GeorgiaJobs.com** (employ.georgia.gov) — mandatory as part of eligibility 2. **Certify weekly** via the GDOL online portal. Report any wages earned during the week. 3. **Complete required work search activities** — Georgia requires at least three employer contacts per week. Keep records. Payments go via debit card (Georgia Way2Go card) or direct deposit. Allow 3–4 weeks for initial payment on a clean claim. Unemployment benefits are taxable as ordinary income at the federal level, and in Georgia they’re also subject to the state’s income tax. You’ll receive a 1099-G each January — my [IRS refund schedule guide](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) and [tax filing dates guide](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) cover the key dates. ## Appealing a Georgia UI Denial If your claim is denied, you have **15 days** from the date of the determination to appeal. File your appeal at [dol.georgia.gov](https://dol.georgia.gov) or by mail. An appeals hearing will be scheduled before a GDOL hearing officer — typically conducted by phone. Georgia’s appeals process is formal — treat it like presenting evidence, not just explaining your side. ## Looking Ahead: 2027 Outlook Georgia’s $365 cap and 14-week minimum duration are locked in for 2026. The bigger question for 2027 isn’t the cap — it’s whether the state’s unemployment rate climbs enough to trigger the built-in duration formula. Rates above 6.5% bump duration to 16 weeks, and above 8.5% to the full 20 weeks. Georgia’s rate has stayed comfortably below 6.5% through 2026, so anyone filing has been getting the 14-week minimum, but that’s a rate-driven outcome, not a fixed policy — worth checking the current rate if conditions shift. I haven’t seen any legislative proposal to raise Georgia’s $365 maximum, which hasn’t moved in years and remains modest for a state its size. I’ll update this page if that changes. I don’t have a specific date to point to on either of these — the duration is recalculated automatically off the state’s rate, not a legislative calendar — but I’ll flag it here if the duration bumps up. ## Common Issues to Watch Out For **Missing the mandatory GeorgiaJobs registration.** GDOL requires you to register with GeorgiaJobs (employ.georgia.gov) as a condition of eligibility, not just a suggestion. I’ve seen claims get flagged or delayed because someone filed for UI but never completed this separate registration step. **Not documenting your three weekly work-search contacts.** GDOL can ask you to produce records of your work-search activity retroactively. Save the company name, date, and how you applied for every contact as you go — a missing record is one of the more common reasons a certification gets questioned after the fact. **Missing the 15-day appeal window.** If you’re denied, you have 15 days from the date of the determination to appeal — shorter than many states. Don’t wait to gather every document first; file the appeal, then assemble your evidence for the hearing. ## Related Resources Compare Georgia’s benefits to other states in our [2026 maximum weekly unemployment benefits by state](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/). If you’re also navigating food costs while between jobs, see my [Georgia SNAP guide](https://savingtoinvest.com/georgia-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) for current benefit amounts and deposit dates. For official filing and current eligibility information, use [dol.georgia.gov](https://dol.georgia.gov). --- Frequently Asked Questions QWhat is the maximum weekly unemployment benefit in Georgia in 2026? A$365 per week. The minimum is $55. Your amount depends on your earnings during the highest-paid quarter of your base period. QHow many weeks of unemployment can I get in Georgia? AIn 2026, most claimants will receive 14 weeks — the minimum under Georgia's variable-duration formula. The number of weeks can increase to 16 or 20 if the state unemployment rate rises. QIs there a waiting week for Georgia unemployment? AYes. Georgia has a one-week waiting period. You must certify for the first week but won't receive payment for it. QHow does Georgia calculate my weekly benefit amount? ADivide your wages from your highest base-period quarter by 21. That's your weekly benefit, capped at $365. QAre Georgia unemployment benefits taxable? AYes. UI benefits are taxable at the federal level. Georgia also taxes unemployment compensation at the state level. You'll receive a 1099-G for both. QWhat is the job search requirement for Georgia UI? AGeorgia requires at least three employer contacts per week while collecting benefits. You must keep records and register with GeorgiaJobs.com (employ.georgia.gov) as part of your eligibility. **Categories:** Government Rebates and Payments --- ### [Florida Reemployment Assistance: 2027 Outlook, Current 2026 Amount $275/Week for 12 Weeks](https://savingtoinvest.com/florida-unemployment-benefits/) **Published:** April 1, 2020 **Author:** Andy **Content:** ### Key Takeaways - Florida's maximum weekly Reemployment Assistance benefit is $275 — tied for the second-lowest in the country and unchanged since 2011. - Benefits last just 12 weeks in 2026, the minimum allowed under Florida law (tied to the state's low unemployment rate). - File through the Reconnect portal at connect.myflorida.com. There's no phone filing — online only. - Your weekly benefit is your highest base-period quarter earnings divided by 26, capped at $275. - Florida renamed its unemployment program "Reemployment Assistance" in 2012. It's the same program, just different branding. Florida pays a maximum of **$275 per week** in Reemployment Assistance benefits, and you can only collect for **12 weeks** — numbers that are locked in for 2026. That’s not a typo. Florida’s system is one of the most restrictive in the United States, and a 2025 bill to raise the cap to $600 has already stalled — the open question for 2027 is whether it, or something like it, comes back. To put it in perspective: if you were earning $50,000 a year ($962/week), $275 represents about 28% income replacement. The national average for state unemployment is closer to 40–45%. Here’s what you need to know for 2026. Covered in this Article: [Toggle](#) - [2026 Florida Reemployment Assistance Basics](#2026_Florida_Reemployment_Assistance_Basics) - [Who Qualifies in Florida](#Who_Qualifies_in_Florida) - [How to File for Florida Reemployment Assistance in 2026](#How_to_File_for_Florida_Reemployment_Assistance_in_2026) - [Why Florida’s Benefits Are So Low](#Why_Floridas_Benefits_Are_So_Low) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Appealing a Florida RA Denial](#Appealing_a_Florida_RA_Denial) - [Related Resources](#Related_Resources) ## 2026 Florida Reemployment Assistance Basics Florida’s unemployment insurance program is officially called “Reemployment Assistance” (RA) — renamed in 2012 under legislation designed to emphasize a return-to-work focus. The agency that runs it is the [Department of Economic Opportunity (DEO)](https://floridajobs.org/), and the online filing system is called **Reconnect** (connect.myflorida.com). **Maximum weekly benefit:** $275. This has not changed since 2011. **Minimum weekly benefit:** $32. **Benefit duration:** Florida ties the number of weeks to the state’s unemployment rate. At Florida’s current unemployment levels (well below 5% statewide), claimants receive just **12 weeks** — the minimum. If unemployment rises above 5%, that can trigger 14–23 weeks. Above 9%, the full 26 weeks kicks in. In mid-2026, 12 weeks is what you get. **Waiting week:** Florida does not have a waiting week. You can claim benefits starting the first week of unemployment. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates as Florida’s unemployment rules evolve.* ## Who Qualifies in Florida To be eligible for Reemployment Assistance in 2026, you need to meet these requirements: - Lost your job through no fault of your own (layoff, reduction in hours, company closure) - Earned at least $3,400 total in your base period (the first four of the last five completed calendar quarters) - Earned wages in at least two of the four base period quarters - Are able to work, available for work, and actively looking for a job Voluntary quits and firings for misconduct are generally disqualifying. If you were let go for reasons related to COVID policies or vaccine mandates and disagree with the denial, there were some state-specific provisions during the pandemic — but those are largely resolved now. **Independent contractors and gig workers** are not covered by Florida’s regular RA program. Federal pandemic-era PUA benefits for gig workers ended in 2021 and have not been reinstated. ## How to File for Florida Reemployment Assistance in 2026 Florida is **online only** — there’s no phone option for filing. All applications, weekly certifications, and status checks go through **Reconnect** at [connect.myflorida.com](https://connect.myflorida.com). Steps to file: 1. Create an account (or log in) at connect.myflorida.com 2. Start a new RA claim — enter your Social Security number, work history for the past 18 months, and reason for separation 3. Submit your claim and wait for an eligibility determination (usually 3–4 weeks) 4. Certify for weeks claimed every Sunday through Saturday Payments are issued via the Florida Way2Go debit card or direct deposit. Florida typically pays within 3–4 weeks of your initial claim if everything checks out. One frustrating reality: Florida’s DEO and the Reconnect system have had well-documented processing problems since the pandemic. If your claim gets stuck, the DEO phone number is 1-800-204-2418, but call volumes can be high and resolution slow. Persistence helps. ## Why Florida’s Benefits Are So Low Florida’s $275 cap has been the subject of considerable criticism. The cap was set in 2011 as part of a deliberate policy decision to keep the state’s unemployment trust fund solvent and employer taxes low. No legislation has successfully raised it since. Bills to increase Florida’s benefit cap have come up periodically in the state legislature but have consistently failed. A 2025 bill proposed raising the maximum to $600, but as of 2026 it has not passed. If you’re comparing states, Florida’s $275 puts it in roughly the same tier as Alabama ($275) and Mississippi ($235). Compare that to neighboring Georgia ($365) or Texas ($605), and the gap is significant. ## Looking Ahead: 2027 Outlook The $600 bill that stalled in 2025 is the one to watch for 2027 — Florida’s legislature meets again, and if cost-of-living pressure keeps building, a similar proposal could resurface. Nothing is scheduled yet, and past attempts to raise the cap have consistently failed since 2011, so I wouldn’t bet on it, but it’s the single biggest lever that could move. The 12-week duration is tied to Florida’s unemployment rate rather than a fixed number, so it could shift on its own if the state’s rate moves — above 5% triggers 14–23 weeks, above 9% triggers the full 26. Worth checking the current rate if you’re filing, since it directly determines how long your benefits last. I’ll update this page if either the cap or the duration formula changes. ## Common Issues to Watch Out For **Overpayment notices and waivers.** If the DEO later determines you were paid more than you should have been — a common trigger is a late employer wage report or an error on a certification — you’ll get an overpayment notice. Non-fraud overpayments can often be waived or set up on a repayment plan; fraud overpayments generally can’t be waived and carry a penalty. If you get one, don’t ignore it — respond by the deadline and ask about a waiver. **A claim stuck in review.** Reconnect has had well-documented processing delays since the pandemic, and it’s common for a claim to sit in “pending” status well past the usual 3–4 week window. Keep certifying every week even while you wait — a missed certification can create a separate problem once your claim clears — and if it’s been significantly longer than 4 weeks with no update, call DEO at 1-800-204-2418 and be persistent; call volumes are high. **Missing the 20-day appeal window.** With only 12 weeks of benefits available in the first place, losing time to a missed appeal deadline is costlier in Florida than in states with longer benefit windows. If you’re denied, file within 20 days of your Notice of Determination — don’t wait to gather every document first. ## Appealing a Florida RA Denial If your claim is denied, you have **20 days** from the date on the Notice of Determination to file an appeal. File through the Reconnect portal in the “Determination/Appeals” section. Florida’s appeals process involves a telephone hearing with a referee. Most hearings are scheduled within 4–6 weeks of the appeal filing. Come prepared with documentation — your separation paperwork, any emails about your termination, pay stubs, etc. ## Related Resources If you’re unemployed in Florida and need other support, check whether you qualify for Florida’s [Supplemental Nutrition Assistance Program (SNAP)](https://savingtoinvest.com/florida-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) or Medicaid through the Florida Department of Children and Families at access.myflorida.com. Florida doesn’t tax UI benefits at the state level, but they’re still taxable federally — my [IRS refund schedule guide](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) and [tax filing dates guide](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) cover the key dates. For a full comparison of how Florida stacks up against other states, see our [2026 maximum weekly unemployment benefits by state chart](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/). You can also read the Florida DEO’s official [Reemployment Assistance claimant guide](https://floridajobs.org/reemployment-assistance-service-center/reemployment-assistance/claimants) for step-by-step instructions. --- Frequently Asked Questions QWhat is the maximum weekly unemployment benefit in Florida in 2026? A$275 per week. This cap has not changed since 2011 and is tied for the second-lowest in the country. QHow many weeks of unemployment can I get in Florida? AIn 2026, most claimants will receive 12 weeks — the minimum under Florida law. The number of weeks is tied to the state's unemployment rate, which would need to rise significantly to trigger more weeks. QIs there a waiting week before Florida RA benefits start? ANo. Florida does not have a waiting week, so you can claim benefits starting the first week you're unemployed. QCan I file for Florida Reemployment Assistance by phone? ANo — Florida is online only. You must file and manage your claim through the Reconnect portal at connect.myflorida.com. QAre Florida Reemployment Assistance benefits taxable? AYes, at the federal level. You'll receive a 1099-G and owe federal income tax on the benefits. Florida has no state income tax, so there's no state tax on RA benefits. QWhat if my Florida RA claim gets stuck or denied? AIf denied, you have 20 days to appeal through the Reconnect portal. If it's stuck in processing, contact the DEO at 1-800-204-2418. Florida's system has had chronic backlogs — document everything and follow up in writing when possible. **Categories:** Government Rebates and Payments **Tags:** Florida, unemployment benefits --- ### [Delaware Unemployment Benefits: 2027 Outlook, Current 2026 Amount Up to $450/Week](https://savingtoinvest.com/delaware-unemployment-benefits/) **Published:** June 20, 2026 **Author:** Andy **Content:** ### Key Takeaways - Delaware's maximum weekly unemployment benefit is $450 in 2026 — a modest cap for a state with above-average living costs, particularly in the suburbs near Wilmington and Philadelphia. - Benefits last up to 26 weeks, which is the standard duration for most states. - Delaware's partial UI formula uses a low $10/week earnings disregard — meaning wages above just $10/week start to reduce your benefit, dollar-for-dollar. - Delaware taxes unemployment benefits as ordinary state income; federal taxes apply as well, and you can elect withholding through the UICMS portal. - Beyond UI, unemployed Delawareans can access Medicaid (expanded), CHIP, SNAP, LIHEAP energy assistance, and career services through Delaware's JobLink system. Delaware’s unemployment insurance program — managed by the [Delaware Department of Labor](https://labor.delaware.gov/) — provides up to $450 per week for up to 26 weeks. That 2026 cap is locked in; the open question is whether it moves for 2027, something policymakers have discussed given Delaware’s relatively high cost of living, though nothing has passed as of this writing. Delaware’s partial UI earnings disregard is also one of the lowest in the country at just $10 per week. For context on how Delaware’s benefits compare nationally, see [SavingToInvest’s full state-by-state breakdown](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/). Covered in this Article: [Toggle](#) - [2026 Benefit Amounts and Duration](#2026_Benefit_Amounts_and_Duration) - [Who Qualifies](#Who_Qualifies) - [Partial Unemployment for Part-Time Workers and Reduced Hours](#Partial_Unemployment_for_Part-Time_Workers_and_Reduced_Hours) - [Tax Implications of Delaware Unemployment Benefits](#Tax_Implications_of_Delaware_Unemployment_Benefits) - [How to File](#How_to_File) - [Other Benefits Available to Unemployed Delaware Workers](#Other_Benefits_Available_to_Unemployed_Delaware_Workers) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## 2026 Benefit Amounts and Duration Delaware’s **maximum weekly benefit is $450** for 2026. The minimum is $20. Benefits last up to **26 weeks**. Your Weekly Benefit Amount is calculated at **1/46th of your total base period wages**, subject to the state cap. The base period is the first four of the last five completed calendar quarters before filing. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates as Delaware’s unemployment rules evolve.* ## Who Qualifies To receive Delaware UI benefits, you must: - Have earned wages of at least **$720 in your highest base period quarter** - Have total base period wages of at least **$900** - Have lost your job through no fault of your own (layoff, reduction in force, plant closure) - Be physically able and available to work, and actively seeking re-employment Delaware requires claimants to conduct three work-search contacts per week and register with Delaware JobLink (delawarejoblink.com). Certify weekly through the online portal or by phone. Workers discharged for misconduct or who quit without good cause are generally ineligible. Delaware recognizes good cause for domestic violence, medical situations requiring resignation, or substantial employer-imposed job changes. ## Partial Unemployment for Part-Time Workers and Reduced Hours Delaware’s partial UI earnings disregard is just **$10 per week** — among the lowest in the country. Wages above $10 per week reduce your benefit dollar-for-dollar. For example, if your WBA is $300 and you earn $80 from part-time work, your benefit is reduced by $70 ($80 − $10 = $70), leaving you $230 for that week. Even minimal part-time income significantly erodes Delaware’s already-modest benefit cap. Workers whose hours were reduced but not fully eliminated by their employer can file for partial UI, as long as they remain available for full-time work. Report all earnings accurately when certifying. ## Tax Implications of Delaware Unemployment Benefits Delaware taxes unemployment compensation as ordinary income at the **state level**. Delaware has a graduated income tax with rates ranging from 2.2% to 6.6% for 2026. Most UI recipients will fall in the 3–5% range depending on total annual income. At the **federal level**, UI is taxable as ordinary income. You’ll receive Form 1099-G from the Delaware DOL each January — my [IRS refund schedule guide](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) and [tax filing dates guide](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) cover the key dates. You can elect federal withholding at 10% and Delaware state withholding from your weekly payments through the UICMS portal at ui.delawareworks.com. ## How to File File your claim at **ui.delawareworks.com** or call 302-761-8446. You’ll need your Social Security number, work history for the past 18 months, and banking information for direct deposit. There is a **one-week waiting period** before benefits start. Certify weekly through the UICMS online portal. Report all wages and work-search activities each week. If your claim is denied, you have **10 days** from the mailing date of the determination to request a hearing before the Unemployment Insurance Appeal Board. ## Other Benefits Available to Unemployed Delaware Workers **Delaware Medicaid (Diamond State Health Plan)**: Delaware expanded Medicaid under the ACA. Adults earning up to 138% of the federal poverty level (about $20,120 for a single person in 2026) can qualify for comprehensive coverage. Apply through the Division of Medicaid and Medical Assistance at dhss.delaware.gov or at [healthcare.gov](https://healthcare.gov). **Delaware Healthy Children Program (CHIP)**: Children in Delaware households earning up to 200% of the federal poverty level can receive health coverage through this program at low or no cost. Apply at healthychildren.delaware.gov or through the DMMA. **SNAP (Food Assistance)**: Delaware’s SNAP program provides monthly food benefits — see my [full Delaware SNAP guide](https://savingtoinvest.com/delaware-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) for current amounts and deposit dates. Income limits are at 130% of the federal poverty level for most households. Apply at benefits.delaware.gov or at your local Division of Social Services office. **LIHEAP (Home Energy Assistance)**: Delaware’s LIHEAP helps income-eligible households pay heating and cooling costs. Apply through the Division of State Service Centers — find your local center at dhss.delaware.gov. **Delaware Works / American Job Centers**: Delaware Works offers free job search help, resume assistance, skills training, and access to WIOA funding for career advancement. Participating in Delaware Works services can help satisfy your weekly work-search requirements. ## Looking Ahead: 2027 Outlook Delaware’s $450 weekly cap has been a point of discussion among policymakers given the state’s relatively high cost of living, and that’s the main thing that could move for 2027. The state’s UI trust fund is in solid shape, so there’s no fiscal pressure forcing a change either way — any increase would be a legislative choice, not a formula-driven one. Delaware’s $10 partial-UI earnings disregard — among the lowest in the country — is the other thing worth watching. It’s drawn criticism for years, and any legislative revision would meaningfully change how much part-time work claimants can do without losing benefits. I don’t have a specific date to point to for either — both would require legislative action that isn’t currently scheduled — but I’ll update this page if either moves. ## Common Issues to Watch Out For **Overpayment notices and waivers.** If the Delaware DOL later determines you were paid more than you should have been — a common trigger is a late employer wage report or an error on a certification — you’ll get an overpayment notice. Non-fraud overpayments can often be waived or set up on a repayment plan; fraud overpayments generally can’t be waived and carry a penalty. If you get one, don’t ignore it — respond by the deadline and ask about a waiver at 302-761-8446 if you believe it wasn’t your fault. **Missing a weekly certification.** Delaware requires certifying every week through the UICMS portal, and a missed week can create a gap in payment even after you’re already approved. Set a recurring reminder rather than relying on memory. **Not documenting your work-search contacts.** Delaware requires three work-search contacts a week, and the DOL can ask you to document them retroactively. Save the company name, date, and how you applied for every contact as you go — I’ve seen claimants get denied weeks later simply because they couldn’t produce a record when asked. --- Frequently Asked Questions QWhat is Delaware's maximum weekly unemployment benefit for 2026? AThe maximum is $450 per week, lasting up to 26 weeks. Your WBA is calculated at 1/46th of your total base period wages, up to the state cap. QDoes Delaware tax unemployment benefits? AYes. Delaware taxes UI as ordinary income at graduated state rates from 2.2% to 6.6%. Federal income tax also applies. You can elect withholding for both through the UICMS portal at ui.delawareworks.com. QHow does partial unemployment work in Delaware? ADelaware's earnings disregard is only $10 per week — one of the lowest in the country. Wages above $10/week reduce your benefit dollar-for-dollar. Even modest part-time income will significantly reduce your UI payment. QDoes Delaware have Medicaid for unemployed adults? AYes — Delaware expanded Medicaid to cover adults up to 138% of the federal poverty level. Many UI recipients will qualify for free coverage. Apply through dhss.delaware.gov or healthcare.gov. QHow many work contacts does Delaware require per week? ADelaware requires three work-search contacts per week while collecting UI. You must also be registered at delawarejoblink.com. Keep records of your contacts in case DOLWD requests verification. QWhat other assistance is available to unemployed Delaware workers? AApply for SNAP, Medicaid, and CHIP through benefits.delaware.gov or your local DSS office. Apply for LIHEAP energy assistance through the Division of State Service Centers. Visit Delaware Works (delawareworks.com) for free job search help and retraining grants. **Categories:** Taxes and Retirement --- ### [Connecticut Unemployment Benefits: 2027 Outlook, Current 2026 Amount Up to $796/Week With Dependents](https://savingtoinvest.com/connecticut-unemployment-benefits/) **Published:** June 20, 2026 **Author:** Andy **Content:** ### Key Takeaways - Connecticut's base maximum weekly unemployment benefit is $721 in 2026 — frozen at this level through October 2028 by state law. Claimants with dependents can receive up to $15 per dependent per week, bringing the effective maximum to $796 for families with five qualifying dependents. - Benefits last up to 26 weeks, and the state has historically been willing to extend coverage during periods of high unemployment. - Connecticut's partial UI formula is somewhat complex — you can earn up to 40% of your WBA in wages before benefits are reduced, with a sliding scale above that. - Connecticut taxes unemployment benefits as ordinary state income; federal taxes also apply, and you can elect withholding from your weekly payments through the ReEmployCT system. - Beyond UI, unemployed Connecticut residents can access HUSKY Health (Medicaid), ConnPACE, SNAP, LIHEAP energy assistance, and free career services through the American Job Center network. Connecticut’s unemployment insurance program — managed by the [Connecticut Department of Labor (CTDOL)](https://portal.ct.gov/dol) — has one of the higher benefit maximums in the Northeast. The 2026 base maximum ($721/week, or up to $796 with dependents) is locked in through October 2028 under a state law that froze the cap to help trust fund solvency — so unlike most states, Connecticut’s “2027 outlook” is actually “no change,” which is itself worth knowing if you’re used to states adjusting annually. The state also provides a dependents allowance, which adds meaningful dollars for families. Compare Connecticut to all other states at [SavingToInvest’s unemployment benefits by state breakdown](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/). Covered in this Article: [Toggle](#) - [2026 Benefit Amounts and Duration](#2026_Benefit_Amounts_and_Duration) - [Who Qualifies](#Who_Qualifies) - [Partial Unemployment for Part-Time Workers and Reduced Hours](#Partial_Unemployment_for_Part-Time_Workers_and_Reduced_Hours) - [Tax Implications of Connecticut Unemployment Benefits](#Tax_Implications_of_Connecticut_Unemployment_Benefits) - [How to File](#How_to_File) - [Other Benefits Available to Unemployed Connecticut Workers](#Other_Benefits_Available_to_Unemployed_Connecticut_Workers) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## 2026 Benefit Amounts and Duration Connecticut’s **maximum weekly base benefit is $721** for 2026, frozen through October 2028 (Connecticut law froze the maximum WBA from October 2024 through October 2028 to help maintain trust fund solvency). Claimants with dependents can receive an additional **$15 per dependent per week**, up to a maximum of five dependents — making the effective top benefit **$796/week** for a five-dependent household. Benefits last up to **26 weeks**. Your Weekly Benefit Amount is approximately **1/26th of your wages in your highest-paid base period quarter**, subject to the state cap. The base period is the first four of the last five completed calendar quarters. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates as Connecticut’s unemployment rules evolve.* ## Who Qualifies To receive Connecticut UI benefits, you must: - Have earned wages of at least **$600 in your highest base period quarter** - Have total base period wages of at least **40× your WBA** - Have earned wages in **at least two quarters** of the base period - Have lost your job through no fault of your own (layoff, reduction in force, business closure) - Be physically able and available to work, and actively seeking re-employment Connecticut requires claimants to actively seek work each week — at least three work-search activities are expected. Register at CTHires.com (Connecticut’s job board) as part of the process. Workers fired for misconduct or who quit without good cause are generally ineligible. Connecticut recognizes good cause for domestic violence situations, medical conditions certified by a physician, and significant employer-imposed changes to working conditions. ## Partial Unemployment for Part-Time Workers and Reduced Hours Connecticut’s partial UI formula: you can earn wages up to **40% of your WBA** without any benefit reduction. Wages above that 40% threshold are deducted from your benefit dollar-for-dollar. For example, if your WBA is $600, you can earn up to $240 per week without any impact. Earn $350 and your benefit is reduced by $110 ($350 − $240), giving you $490 for that week. Workers whose employer reduced their hours can also file for partial UI, as long as they remain available for full-time work and continue their job search. All earnings must be reported when certifying weekly through the ReEmployCT system. ## Tax Implications of Connecticut Unemployment Benefits Connecticut taxes unemployment compensation as ordinary income at the **state level**. Connecticut uses a graduated income tax with rates ranging from 2% to 6.99% for 2026 — the 6.99% top rate applies to higher incomes, while most UI recipients will fall in the 3–5% range depending on total annual income. At the **federal level**, UI is taxable as ordinary income. You’ll receive Form 1099-G from CTDOL each January — my [IRS refund schedule guide](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) and [tax filing dates guide](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) cover the key dates. You can elect federal withholding at 10% and Connecticut state withholding from your weekly payments through the ReEmployCT online portal. Given the moderate to high state tax rate, withholding is worth considering. ## How to File File your claim at **ReEmployCT.ct.gov** or call 860-263-6000. You’ll need your Social Security number, work history for the past 18 months, and bank account details for direct deposit or the CTDOL debit card. There is a **one-week waiting period** before benefits start. After approval, certify weekly through the ReEmployCT portal — typically Sunday through Saturday. Report all wages and job-search activities. If your claim is denied, you have **21 days** from the mailing date of the determination to appeal to the Employment Security Appeals Division. ## Other Benefits Available to Unemployed Connecticut Workers **HUSKY Health (Medicaid and CHIP)**: Connecticut expanded Medicaid under the ACA and administers it through the HUSKY program. Adults earning up to 138% of the federal poverty level qualify for HUSKY D (Medicaid for adults). Children have access through HUSKY B (CHIP). Apply at [healthcare.gov](https://healthcare.gov) or Access Health CT (accesshealthct.com). **SNAP (Food Assistance)**: Connecticut’s SNAP program provides monthly food benefits via EBT card — see my [full Connecticut SNAP guide](https://savingtoinvest.com/connecticut-snap-food-stamp-program-latest-updates-and-news/) for current amounts and deposit dates. Income limits are set at 185% of the federal poverty level (Connecticut uses a higher threshold than the federal minimum). Apply through the Department of Social Services at mydss.ct.gov. **LIHEAP (Energy Assistance)**: Connecticut’s Connecticut Energy Assistance Program (CEAP) helps with home heating costs for income-eligible households. Apply through your local Community Action Agency — find yours at ct.gov/dss. **CT Paid Leave**: If your unemployment is related to a qualifying medical or family reason, Connecticut’s Paid Leave program may provide additional income support separate from UI. Administered by the CT Paid Leave Authority (ctpaidleave.org). **American Job Centers (AJCs)**: Connecticut’s network of American Job Centers offers free job search assistance, resume help, career coaching, and access to WIOA-funded training grants. Workers from larger layoffs may qualify for Rapid Response services. ## Looking Ahead: 2027 Outlook Unlike most states, Connecticut’s base maximum isn’t the thing to watch for 2027 — it’s frozen by law through October 2028. The dependents allowance ($15/week per dependent) is the more realistic lever, and advocacy groups have periodically pushed to raise it, though nothing has passed as of this writing. The state’s ReEmployCT filing system, launched in 2022, has also been progressively improving — worth checking if you had a rough experience with it in past years, since functionality has changed since launch. I don’t have a specific date to point to for either of these — legislative action on the dependents allowance isn’t scheduled — but I’ll update this page if anything moves. ## Common Issues to Watch Out For **Overpayment notices and waivers.** If CTDOL later determines you were paid more than you should have been — a common trigger is a late employer wage report or an error on a certification — you’ll get an overpayment notice. Non-fraud overpayments can often be waived or set up on a repayment plan; fraud overpayments generally can’t be waived and carry a penalty. If you get one, don’t ignore it — respond by the deadline and ask CTDOL about a waiver at 860-263-6000 if you believe it wasn’t your fault. **Letting your dependents allowance lapse.** If a dependent’s situation changes — they age out, or a household change affects eligibility — you’re required to update it with CTDOL. Getting the dependents allowance on a claim CTDOL later finds you weren’t eligible for turns into its own overpayment problem. **Not documenting your work-search activities.** Connecticut expects three work-search activities a week, and CTDOL can ask you to document them retroactively. Save the company name, date, and how you applied for every activity as you go — I’ve seen claimants get denied weeks later simply because they couldn’t produce a record when asked. --- Frequently Asked Questions QWhat is Connecticut's maximum weekly unemployment benefit for 2026? AThe base maximum is $721 per week, with an additional $15 per dependent per week for claimants with qualifying dependents. Benefits last up to 26 weeks. QDoes Connecticut tax unemployment benefits? AYes. Connecticut taxes UI as ordinary income at graduated state rates from 2% to 6.99%. Federal income tax also applies. You can elect both state and federal withholding through ReEmployCT.ct.gov. QHow does partial unemployment work in Connecticut? AConnecticut disregards wages up to 40% of your WBA — earnings below that threshold don't reduce your benefit. Wages above 40% of your WBA reduce your payment dollar-for-dollar. Report all wages when certifying each week. QDoes Connecticut offer a dependents allowance on top of the regular weekly benefit? AYes — Connecticut adds $15 per week per qualifying dependent to your base WBA, up to a capped total. This is one of the more family-friendly features of Connecticut's UI program. QDoes Connecticut have Medicaid for unemployed adults? AYes. Connecticut expanded Medicaid (HUSKY D) to adults up to 138% of the federal poverty level. With only UI as income, many claimants will qualify for free or low-cost coverage. Apply at mydss.ct.gov or through Access Health CT. QWhat other assistance is available to unemployed Connecticut workers? AApply for SNAP and HUSKY Health through mydss.ct.gov. Apply for heating assistance through your local Community Action Agency (find at ct.gov/dss). Check CT Paid Leave (ctpaidleave.org) for family or medical leave benefits. Visit an American Job Center for free career services and retraining grants. **Categories:** Taxes and Retirement --- ### [Colorado Unemployment Benefits: 2027 Outlook, Current 2026 Amount Up to $844/Week](https://savingtoinvest.com/colorado-unemployment-benefits/) **Published:** April 2, 2020 **Author:** Andy **Content:** ### Key Takeaways - Colorado's maximum weekly unemployment benefit is $844 in 2026, up from $781, following the annual adjustment tied to two-thirds of the statewide average weekly wage. - Benefits last up to 26 weeks under standard conditions. - Colorado's partial UI formula uses a 25% earnings disregard — you can earn up to 25% of your WBA per week before your benefit is reduced. - Colorado taxes unemployment benefits as ordinary state income at a flat 4.4% rate for 2026; federal taxes also apply. - Beyond UI, unemployed Coloradans can access Health First Colorado (Medicaid — expanded), CHP+ (CHIP), SNAP, LEAP energy assistance, and career services through Workforce Centers statewide. Colorado’s unemployment insurance program — managed by the [Colorado Department of Labor and Employment (CDLE)](https://cdle.colorado.gov/) — raised its maximum weekly benefit to $844 in 2026, up from $781 in 2025. That 2026 number is locked in; the open question is 2027, since Colorado’s cap adjusts every January based on the statewide average weekly wage — expect another increase, though CDLE hasn’t published the exact figure yet. Compare Colorado to all 50 states at [SavingToInvest’s state unemployment benefits guide](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/). Covered in this Article: [Toggle](#) - [2026 Benefit Amounts and Duration](#2026_Benefit_Amounts_and_Duration) - [Who Qualifies](#Who_Qualifies) - [Partial Unemployment for Part-Time Workers and Reduced Hours](#Partial_Unemployment_for_Part-Time_Workers_and_Reduced_Hours) - [Tax Implications of Colorado Unemployment Benefits](#Tax_Implications_of_Colorado_Unemployment_Benefits) - [How to File](#How_to_File) - [Other Benefits Available to Unemployed Colorado Workers](#Other_Benefits_Available_to_Unemployed_Colorado_Workers) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## 2026 Benefit Amounts and Duration Colorado’s **maximum weekly benefit is $844** for 2026. The minimum is $25. Benefits last up to **26 weeks**. Your Weekly Benefit Amount is calculated at **60% of your average weekly wage** over the base period, subject to the $844 cap. The base period is the first four of the last five completed calendar quarters before filing. Things can change — I’ll update this page when any adjustments are announced. [Subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## Who Qualifies To receive Colorado UI benefits, you must: - Have earned wages in covered employment during the base period - Have wages in your **highest quarter of at least $2,500** - Have total base period wages of at least **40× your WBA** - Have lost your job through no fault of your own (layoff, reduction in force, business closure) - Be physically able and available for suitable full-time work - Actively seek employment — Colorado requires **at least five job search activities per week** Register with Colorado’s job center at connectingcolorado.com and certify biweekly through MyUI+ at myui.coworkforce.com or by phone at 303-536-5615. Workers fired for misconduct or who quit without good cause are generally ineligible. Colorado recognizes good cause for domestic abuse, medical conditions, and substantial employer-imposed changes to working conditions. ## Partial Unemployment for Part-Time Workers and Reduced Hours Colorado’s partial UI formula: the earnings disregard is **25% of your WBA** per week. Earnings above that threshold reduce your benefit dollar-for-dollar. For example, if your WBA is $700 (25% = $175) and you earn $300: - Disregard: $175 - Deductible earnings: $300 − $175 = $125 - Adjusted WBA: $700 − $125 = $575 Workers on reduced hours can also file for partial benefits. Note: Colorado recently implemented **SharedWork** (work-sharing) as a formal program — employers can reduce hours instead of laying off workers, with employees collecting partial UI for the reduced hours without the normal job-search requirement during the SharedWork period. All earnings must be reported when certifying through MyUI+. ## Tax Implications of Colorado Unemployment Benefits Colorado taxes unemployment compensation as ordinary income at the **flat 4.4% state rate** for 2026 (down from 4.55% in prior years — Colorado has been gradually reducing its income tax rate). At $844/week for 26 weeks, that’s roughly $963 in state tax. At the **federal level**, UI is taxable as ordinary income. You’ll receive Form 1099-G from CDLE by January 31 — my [IRS refund schedule guide](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) and [tax filing dates guide](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) cover the key dates. You can elect federal and state withholding when certifying through MyUI+. Withholding is recommended. ## How to File File your claim at **myui.coworkforce.com** or call 303-536-5615. You’ll need your Social Security number, work history for the past 18 months, and bank account details for direct deposit or a Money Network debit card. There is a **one-week waiting period** before benefits start. After approval, certify biweekly through MyUI+ — report all earnings and five weekly job-search activities each period. If your claim is denied, you have **20 days** from the mailing date to file an appeal with the CDLE Division of Unemployment Insurance. ## Other Benefits Available to Unemployed Colorado Workers **Health First Colorado (Medicaid)**: Colorado expanded Medicaid in 2013 through Health First Colorado. Adults earning up to 138% of the federal poverty level qualify for free comprehensive coverage. Apply at colorado.gov/pacific/hcpf or PEAK (coloradopeak.secure.force.com). **CHP+ (Children’s Health Insurance Program)**: Colorado’s Child Health Plan Plus provides low-cost health coverage for children and pregnant women up to 260% of the federal poverty level. Apply at colorado.gov/pacific/hcpf. **SNAP (Food Assistance)**: Colorado SNAP provides monthly food benefits via EBT — see my [full Colorado SNAP guide](https://savingtoinvest.com/colorado-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) for current amounts and deposit dates. Apply through PEAK or your county department of human or social services. Net income limits are at 100% of the federal poverty level. **LEAP (Low-Income Energy Assistance Program)**: Colorado’s LEAP helps with heating costs during the winter season. Applications typically open in November. Apply at cdhs.colorado.gov/leap or your county human services office. **Colorado Workforce Centers**: Colorado’s Workforce Center network provides free job placement, skills training, resume help, and access to WIOA-funded training programs. Find your nearest center at cdle.colorado.gov. ## Looking Ahead: 2027 Outlook Colorado’s benefit maximum adjusts every January, tied directly to the statewide average weekly wage — so the 2027 number is really a function of how much Colorado wages grow over the coming months, not a policy decision. Given the pattern of recent years, I’d expect another increase, but CDLE won’t confirm the exact figure until closer to January. Colorado’s SharedWork program is worth knowing about regardless of the 2027 number — if your employer is considering layoffs, SharedWork lets them cut hours instead while employees collect partial UI, without the normal job-search requirement during that period. I’ll update this page as soon as CDLE announces the 2027 maximum, typically around the start of the year. ## Common Issues to Watch Out For **Overpayment notices and waivers.** If CDLE later determines you were paid more than you should have been — a common trigger is a late employer wage report or an error on a certification — you’ll get an overpayment notice. Non-fraud overpayments can often be waived or set up on a repayment plan; fraud overpayments generally can’t be waived and carry a penalty. If you get one, don’t ignore it — respond by the deadline and ask CDLE about a waiver at 303-536-5615 if you believe it wasn’t your fault. **Missing a biweekly certification.** Colorado certifies every two weeks through MyUI+, not weekly like some states — it’s easy to lose track of the cadence, and a missed certification window can create a gap in payment even after you’re already approved. Set a recurring reminder matched to your specific certification schedule. **Not documenting your job-search activities.** Colorado requires five job-search activities a week, more than most states, and CDLE can ask you to document them. Save the company name, date, and how you applied for every activity as you go — I’ve seen claimants get denied weeks later simply because they couldn’t produce a record when asked. --- Frequently Asked Questions QWhat is Colorado's maximum weekly unemployment benefit for 2026? A$844 per week, up from $781 in 2025. Benefits last up to 26 weeks. Colorado sets its maximum at two-thirds of the statewide average weekly wage, adjusted each January. QDoes Colorado tax unemployment benefits? AYes. Colorado taxes UI at the flat 4.4% state income tax rate for 2026. Federal taxes also apply. Elect withholding from your MyUI+ weekly payments to avoid a year-end bill. QHow does partial unemployment work in Colorado? AColorado disregards 25% of your WBA from weekly gross earnings. Earnings above that reduce your benefit dollar-for-dollar. Report all earnings when certifying biweekly. QWhat is Colorado SharedWork? ASharedWork is Colorado's work-sharing program — employers can reduce employee hours (by 10%–40%) and those employees collect partial UI for the reduced hours without the usual job-search requirement. Employers contact CDLE to set up a SharedWork plan. QDoes Colorado have Medicaid for unemployed adults? AYes — Colorado expanded Medicaid in 2013 through Health First Colorado. Adults earning up to 138% of the federal poverty level qualify for free coverage. Apply at coloradopeak.secure.force.com. **Categories:** Government Rebates and Payments --- ### [Arkansas Unemployment Benefits: 2027 Outlook, Current 2026 Amount Up to $451/Week](https://savingtoinvest.com/arkansas-unemployment-benefits/) **Published:** January 8, 2021 **Author:** Andy **Content:** ### Key Takeaways - Arkansas's maximum weekly unemployment benefit is $451 in 2026, and like Kansas, the state caps benefits at only 16 weeks — well below the 26-week standard. - To qualify, you need to have earned at least $1,900 in your highest base period quarter and wages in at least two quarters. - Part-time workers can collect partial benefits in Arkansas — you can earn wages up to 40% of your WBA each week without any reduction; earnings above that are offset dollar-for-dollar. - Arkansas taxes unemployment benefits as ordinary state income; federal taxes apply as well. - Beyond UI, unemployed Arkansans can access Arkansas Medicaid (expanded under the ACA), SNAP, LIHEAP energy assistance, and services through Arkansas Workforce Centers. Arkansas’s unemployment insurance program — run by the [Division of Workforce Services (DWS)](https://dws.arkansas.gov/) — provides a relatively modest weekly maximum and limits benefits to just 16 weeks. The 2026 maximum ($451/week) is already locked in — the real open question is whether Arkansas revisits the 16-week duration cap, something legislators have pushed on before without success. Here’s the full picture: current 2026 benefits, my 2027 outlook, eligibility, partial UI, tax rules, and additional Arkansas assistance programs. Covered in this Article: [Toggle](#) - [2026 Benefit Amounts and Duration](#2026_Benefit_Amounts_and_Duration) - [Who Qualifies](#Who_Qualifies) - [Partial Unemployment for Part-Time Workers and Reduced Hours](#Partial_Unemployment_for_Part-Time_Workers_and_Reduced_Hours) - [Tax Implications of Arkansas Unemployment Benefits](#Tax_Implications_of_Arkansas_Unemployment_Benefits) - [How to File](#How_to_File) - [Other Benefits Available to Unemployed Arkansas Workers](#Other_Benefits_Available_to_Unemployed_Arkansas_Workers) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## 2026 Benefit Amounts and Duration Arkansas’s **maximum weekly benefit is $451** for 2026. The minimum is $81. Benefits last up to **16 weeks** — the same short cap as Kansas and well below the national standard of 26 weeks. Your Weekly Benefit Amount is calculated at approximately **1/25th of your wages in your highest base period quarter**, subject to the state maximum. The base period is the first four of the last five completed calendar quarters before filing. Arkansas also allows an alternative base period using your most recently completed four quarters if you don’t meet the standard test. See how **Arkansas UI benefits** compare to other states at our [national unemployment benefits comparison](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/) table and [Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get the latest updates as Arkansas’s benefit rules evolve. ## Who Qualifies To receive Arkansas UI benefits, you must: - Have earned wages of at least **$1,900 in your highest quarter** of the base period - Have earned wages in **at least two quarters** of the base period - Have total base period wages of at least **27 times your WBA** - Have lost your job through no fault of your own (layoff, reduction in force, position eliminated) - Be able to work, available for work, and actively seeking new employment Arkansas requires claimants to document their weekly job-search activities. Typically three employer contacts per week are expected and may be audited. Claimants must register at ArkansasJobLink.com. Workers fired for misconduct or who quit without good cause connected to work are generally ineligible. Arkansas recognizes good cause resignations for documented domestic violence, medical conditions verified by a physician, or discriminatory working conditions. ## Partial Unemployment for Part-Time Workers and Reduced Hours Arkansas’s partial UI formula uses a **40% earnings disregard**: wages up to 40% of your Weekly Benefit Amount per week have no effect on your benefits. Wages above that threshold reduce your payment dollar-for-dollar. For example, if your WBA is $350, you can earn up to $140 per week in part-time wages without any reduction. Earn $200 and you lose $60 in benefits ($200 − $140 = $60), receiving $290 for that week. The 40% disregard is more generous than some states (better than Wisconsin’s $30 flat disregard), but the relatively low WBA cap means the actual dollar disregard amount is modest. Workers who are fully laid off and pick up part-time work, and workers whose hours were reduced by their employer without a full layoff, are both eligible to file for partial benefits. All wages must be reported when certifying weekly through the DWS online portal. Arkansas matches employer wage reports quarterly. ## Tax Implications of Arkansas Unemployment Benefits Arkansas taxes unemployment compensation as ordinary income at the **state level**. Arkansas uses a graduated income tax structure — the top rate is 4.7% for tax year 2026 (Arkansas has been on a path of scheduled rate reductions; verify the current year rate at dfa.arkansas.gov). For most UI recipients, the relevant rate will be in the 2%–4.7% range depending on total annual income. At the **federal level**, UI is taxable as ordinary income. You’ll receive Form 1099-G from DWS each January — my [IRS refund schedule guide](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) and [tax filing dates guide](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) cover the key dates if you’re mapping out when things land. You can elect federal tax withholding at 10% and state withholding from your weekly payments through the DWS online system. Given Arkansas’s relatively low benefit amounts and ongoing tax rate reductions, many claimants find withholding a small amount is sufficient to cover state liability. ## How to File File your claim at **dws.arkansas.gov** (Arkansas Division of Workforce Services) or call 501-907-2590. You’ll need your Social Security number, work history for the past 18 months, and bank account details for direct deposit or the DWS prepaid debit card. There’s a **one-week waiting period** before benefits begin. Certify weekly through the DWS online portal — typically Monday through Friday. Report your job-search contacts and wages each week. If denied, you have **20 days** from the mailing date of the determination to appeal to the Arkansas Board of Review. ## Other Benefits Available to Unemployed Arkansas Workers Arkansas has expanded Medicaid under the ACA and has a relatively comprehensive safety net for a state of its size. **Arkansas Medicaid (Arkansas Works)**: Arkansas expanded Medicaid to cover adults up to 138% of the federal poverty level (about $20,120 for a single person in 2026) through its “Arkansas Works” program. With only UI as income, many workers will qualify for free comprehensive coverage. Apply at access.arkansas.gov or mybenefits.arkansas.gov. **ARKids First (CHIP)**: Children in Arkansas households earning up to 211% of the federal poverty level can receive health coverage through ARKids First at low or no cost. Apply at access.arkansas.gov. **SNAP (Supplemental Nutrition Assistance Program)**: Arkansas’s SNAP program provides monthly food assistance via EBT card — see my [full Arkansas SNAP guide](https://savingtoinvest.com/arkansas-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/) for current amounts and deposit dates. Income limits are set at 130% of the federal poverty level for most households. Apply at access.arkansas.gov or your local Department of Human Services office. **LIHEAP (Low Income Home Energy Assistance Program)**: Arkansas’s LIHEAP helps income-eligible households with heating and cooling costs. Apply through your local Community Services Block Grant agency or the Arkansas Energy Office. Find your local agency at mybenefits.arkansas.gov. **Arkansas Medicaid Transportation**: If you qualify for Medicaid and need transportation to medical appointments, Arkansas’s non-emergency medical transportation benefit covers this — useful for workers managing medical conditions during unemployment. **Arkansas Workforce Centers**: DWS operates Workforce Centers throughout the state offering free job search assistance, resume and interview preparation, labor market data, and access to Workforce Innovation and Opportunity Act (WIOA) training grants. Given the 16-week UI cap, early engagement with a Workforce Center is especially important. Trade Adjustment Assistance is available for workers whose jobs were affected by trade agreements or foreign competition. **Arkansas Emergency Assistance Programs**: Local community action agencies and nonprofits throughout Arkansas offer emergency rental, utility, and food assistance outside of state programs. Dial 211 or visit 211.org for referrals to local resources. ## Looking Ahead: 2027 Outlook Arkansas’s 16-week benefit cap is the single biggest lever that could move for 2027 — it’s one of the more criticized aspects of the state’s UI program, especially since Arkansas has kept Medicaid expansion and keeps investing in workforce development elsewhere. Periodic legislative efforts to restore the 26-week standard haven’t succeeded yet, but it’s the one to watch. Separately, Arkansas’s state income tax rate has been on a multi-year scheduled decline — the current top rate is 4.7%, and further reductions would lower what you owe on UI benefits at tax time if they take effect. I don’t have a confirmed date for either of these — legislative sessions and any DWS policy changes for 2027 aren’t set yet — but I’ll update this page as soon as something moves. ## Common Issues to Watch Out For **Overpayment notices and waivers.** If DWS later determines you were paid more than you should have been — a common trigger is a late employer wage report or an error on a certification — you’ll get an overpayment notice. Non-fraud overpayments can often be waived or set up on a repayment plan; fraud overpayments generally can’t be waived and carry a penalty. If you get one, don’t ignore it — respond by the deadline and ask DWS about a waiver at 501-907-2590 if you believe it wasn’t your fault. **Missing a weekly certification.** Arkansas requires certifying through the DWS online portal, typically Monday through Friday, and a missed week can create a gap in payment even after you’re already approved. Set a recurring reminder rather than relying on memory. **Not documenting your work-search contacts.** Arkansas expects three employer contacts a week and can audit them. Save the company name, date, and how you applied for every contact as you go — I’ve seen claimants get denied weeks later simply because they couldn’t produce a record when asked. --- Frequently Asked Questions QWhat is Arkansas's maximum weekly unemployment benefit for 2026? AThe maximum is $451 per week, and benefits last up to 16 weeks. Your WBA is based on 1/25th of your wages in your highest base period quarter, up to the state cap. QWhy does Arkansas only give 16 weeks of unemployment benefits? AArkansas reduced its maximum duration from 26 weeks to a formula-based system that currently caps at 16 weeks under state unemployment conditions. This is the same cap as Kansas and reflects a legislative choice to limit the duration of benefits. QDoes Arkansas tax unemployment benefits? AYes. Arkansas taxes UI as ordinary income at graduated state rates (top rate of 4.7% for 2026 — verify current year at dfa.arkansas.gov). Federal taxes also apply. You can elect withholding from your weekly payments through the DWS online portal. QHow does partial unemployment work in Arkansas? AArkansas allows you to earn up to 40% of your Weekly Benefit Amount per week without any benefit reduction. Wages above that 40% threshold reduce your benefit dollar-for-dollar. This is more generous than some states but the actual dollar amount is modest given Arkansas's lower WBA cap. QDoes Arkansas have Medicaid for unemployed adults? AYes — Arkansas expanded Medicaid (Arkansas Works) to cover adults up to 138% of the federal poverty level. With only UI income, many claimants will qualify for free health coverage. Apply at access.arkansas.gov. QWhat other programs can unemployed Arkansas workers access? AApply at access.arkansas.gov for Medicaid (Arkansas Works), SNAP food assistance, and ARKids First (CHIP for children). Apply for LIHEAP energy assistance through your local community action agency or mybenefits.arkansas.gov. Visit Arkansas Workforce Centers for free career services and retraining grants. **Categories:** Government Rebates and Payments --- ### [Alabama Unemployment Benefits: 2027 Outlook, Current 2026 Amount Up to $275/Week](https://savingtoinvest.com/alabama-unemployment-benefits/) **Published:** September 18, 2020 **Author:** Andy **Content:** ### Key Takeaways - Alabama's maximum weekly unemployment benefit is $275 in 2026 — one of the lowest caps in the entire country — but the state does offer up to 26 weeks of coverage. - To qualify, you need to have earned wages in at least two quarters of the base period, with wages in your highest quarter of at least $1,157.01. - Part-time workers can collect partial benefits in Alabama, but the earnings disregard is very low — only $15 per week in wages is ignored before your benefit is reduced dollar-for-dollar. - Alabama taxes unemployment benefits at the state level; federal taxes apply as well, and you can elect withholding from your weekly payments through the ADOL portal. - Beyond UI, unemployed Alabamians can access Medicaid (with eligibility limitations since Alabama hasn't expanded), ALL Kids (CHIP), SNAP, LIHEAP, and free career services through Alabama Career Centers. Alabama’s unemployment insurance program — managed by the [Alabama Department of Labor (ADOL)](https://labor.alabama.gov/) — has the distinction of one of the lowest maximum weekly benefit caps in the United States. The 2026 maximum ($275 per week) is already locked in; the open question is whether ADOL adjusts it for 2027, since Alabama’s cap has stayed essentially flat for years despite periodic legislative pushes to raise it. Understanding what else is available — and acting fast — is especially important for Alabama workers. Here’s the full picture: current 2026 benefits, my 2027 outlook, eligibility, and what else is available. Covered in this Article: [Toggle](#) - [2026 Benefit Amounts and Duration](#2026_Benefit_Amounts_and_Duration) - [Who Qualifies](#Who_Qualifies) - [Partial Unemployment for Part-Time Workers and Reduced Hours](#Partial_Unemployment_for_Part-Time_Workers_and_Reduced_Hours) - [Tax Implications of Alabama Unemployment Benefits](#Tax_Implications_of_Alabama_Unemployment_Benefits) - [How to File](#How_to_File) - [Other Benefits Available to Unemployed Alabama Workers](#Other_Benefits_Available_to_Unemployed_Alabama_Workers) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## 2026 Benefit Amounts and Duration Alabama’s **maximum weekly benefit is $275** for 2026. The minimum weekly benefit is $45. Benefits run up to **26 weeks**. Your Weekly Benefit Amount is calculated at approximately **1.5% of your total base period wages**, up to the state maximum. Alternatively, ADOL may use a quarter-based formula depending on which results in a higher WBA. The base period is the first four of the last five completed calendar quarters before filing. There is no dependents allowance in Alabama’s basic formula, which contributes to the program’s relatively limited income-replacement capability. See how **Alabama UI benefits** compare to other states at our [national unemployment benefits comparison](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/) table and [Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get the latest updates as Alabama’s benefit rules evolve. ## Who Qualifies To receive Alabama unemployment benefits, you must: - Have earned wages in **at least two quarters** of the base period - Have wages in your **highest base period quarter of at least $1,157.01** - Have total base period wages of at least 1.5 times your highest quarter wages - Have lost your job through no fault of your own (layoff, position eliminated, business closure) - Be physically able and available to work, and actively seeking employment each week Alabama requires claimants to register at AlabamaJobLink.com and document weekly job-search activities. The standard requirement is three work-search contacts per week. Workers who were fired for misconduct or who quit without good cause are generally ineligible. Alabama recognizes certain good cause situations — documented domestic abuse, medical conditions requiring resignation, or major employer-imposed changes to job terms — but documentation requirements are strict. ## Partial Unemployment for Part-Time Workers and Reduced Hours Alabama’s partial unemployment formula is among the least generous in the country. The state provides only a **$15 per week earnings disregard** — meaning wages above $15 per week reduce your benefit dollar-for-dollar. For example, if your WBA is $200 and you earn $75 from part-time work, your benefit is reduced by $60 ($75 − $15 = $60), giving you $140 for that week. Even low-paid part-time work quickly erodes Alabama’s already modest weekly benefit. Alabama also uses an hours-based cap — if you work a week that would otherwise pay more than your WBA, you receive $0 for that week. The combination of a low WBA and a tiny disregard makes Alabama’s partial benefit particularly limited for workers trying to supplement income with part-time work during a job search. Despite these limitations, collecting partial benefits is still better than getting nothing. If your employer reduced your hours — but didn’t lay you off completely — you can file for partial UI as long as your earnings remain below your WBA and you remain available for full-time work. All wages and hours must be reported when certifying weekly. ADOL matches employer wage records each quarter. ## Tax Implications of Alabama Unemployment Benefits Alabama taxes unemployment compensation as ordinary income at the **state level**. Alabama’s income tax rates are graduated — the top rate is 5% on income above $3,000 (for single filers). Most UI recipients will pay the 2%–5% state rate depending on their total annual income. At the **federal level**, UI is taxable ordinary income. You’ll receive Form 1099-G from ADOL each January — if you’re mapping out when a refund (or a balance due) might land, my [IRS refund schedule guide](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) and [tax filing dates guide](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) cover the key dates. You can elect federal income tax withholding at 10% and/or Alabama state withholding from your weekly payments through the ADOL online system. Given Alabama’s low weekly benefit, even modest withholding covers most claimants’ state liability. ## How to File File your claim at **labor.alabama.gov** or call 866-234-5382. You’ll need your Social Security number, work history for the past 18 months, and bank account details for direct deposit or the ADOL-issued debit card. There’s a **one-week waiting period** before benefits begin. After approval, certify weekly through the ADOL online portal or by phone (Sunday through Friday each week). Report your job-search activities and any wages earned. If your claim is denied, you have **15 days** from the mailing date of the determination to file an appeal with the Alabama Department of Industrial Relations. ## Other Benefits Available to Unemployed Alabama Workers Alabama’s safety net has significant gaps for unemployed adults due to the state’s decision not to expand Medicaid under the ACA. Knowing what IS available is critical. **Alabama Medicaid**: Alabama has NOT expanded Medicaid under the ACA as of 2026. Alabama Medicaid is limited to specific categories: children, pregnant women, elderly and disabled individuals, and adults in households with children who meet strict income criteria (generally below 18% of the federal poverty level for parents — one of the lowest thresholds in the country). Most unemployed single adults without children will not qualify. If you don’t qualify for Medicaid, check **Healthcare.gov** immediately after losing your job — losing employment is a qualifying life event that opens a Special Enrollment Period for ACA marketplace plans, and premium tax credits are available based on your income. **ALL Kids (CHIP)**: Alabama’s Children’s Health Insurance Program covers children in households earning up to 200% of the federal poverty level at low cost. Apply at alsoconnect.alabama.gov. **SNAP (Supplemental Nutrition Assistance Program)**: Alabama’s SNAP program provides monthly food benefits via EBT card — see my [full Alabama SNAP guide](https://savingtoinvest.com/alabama-snap-food-stamp-program-latest-updates-and-news/) for current amounts and deposit dates. Income limits are at 130% of the federal poverty level for most households. Apply at alsoconnect.alabama.gov or your local Department of Human Resources (DHR) office. **LIHEAP (Home Energy Assistance)**: Alabama’s Low Income Home Energy Assistance Program helps with both heating and cooling costs — the summer cooling component is particularly important in Alabama’s climate. Apply through your county Community Action Agency or at adeca.alabama.gov. **Temporary Assistance for Needy Families (TANF — Family Assistance)**: Families with children meeting strict income criteria may qualify for temporary cash assistance. Contact your local county Department of Human Resources for details. **Alabama Career Centers**: The Alabama Career Center system offers free job search assistance, resume help, and career counseling statewide. Alabama Career Centers also provide access to WIOA-funded training programs for displaced workers who want to change fields. Given Alabama’s low UI maximum, connecting with a Career Center and exploring training options early is valuable. Trade Adjustment Assistance is available for workers displaced by foreign trade. **2-1-1 Alabama**: Dialing 2-1-1 or visiting 211.org connects you to local community organizations providing emergency food, rental assistance, utility help, and other services that the state doesn’t formally administer. ## Looking Ahead: 2027 Outlook Alabama’s $275 maximum weekly benefit has been essentially flat for years, and I’m not seeing anything that points to a change for 2027 — periodic legislative pushes to raise the cap haven’t succeeded, and the state’s UI trust fund is healthy enough that there’s no fiscal pressure forcing a move either way. The bigger open question for Alabama isn’t really UI — it’s healthcare access. The state still hasn’t expanded Medicaid, and that’s a larger gap for unemployed workers than the benefit cap itself. Worth watching Alabama’s legislative session for any expansion votes or alternative coverage proposals. I don’t have a specific release date to point to here — Alabama’s UI rules don’t follow the same annual-adjustment calendar some other states do — but I’ll update this page if ADOL announces any change for 2027. ## Common Issues to Watch Out For **Overpayment notices and waivers.** If ADOL later determines you were paid more than you should have been — a common trigger is a late employer wage report or an error on a certification — you’ll get an overpayment notice. Non-fraud overpayments can often be waived or set up on a repayment plan; fraud overpayments generally can’t be waived and carry a penalty. If you get one, don’t ignore it — respond by the deadline and ask ADOL about a waiver at 866-234-5382 if you believe it wasn’t your fault. **Missing a weekly certification.** Alabama requires certifying every week (Sunday through Friday) to keep benefits flowing, and a missed week can create a gap in payment even after you’re already approved. Set a recurring reminder rather than relying on memory. **Not documenting your work-search contacts.** Alabama requires three job-search contacts a week, and ADOL can ask you to document them retroactively. Save the company name, date, and how you applied for every contact as you go — I’ve seen claimants get denied weeks later simply because they couldn’t produce a record when asked. --- Frequently Asked Questions QWhat is Alabama's maximum weekly unemployment benefit for 2026? AThe maximum is $275 per week — one of the lowest in the United States. Benefits last up to 26 weeks, which is the standard duration. Your specific WBA is based on 1.5% of your total base period wages, up to the cap. QDoes Alabama tax unemployment benefits? AYes. Alabama taxes UI as ordinary income at graduated state rates up to 5%. Federal income tax also applies. You can elect withholding from your weekly payments through the ADOL online system at labor.alabama.gov. QHow does partial unemployment work in Alabama? AAlabama's earnings disregard is only $15 per week — among the lowest in the country. Wages above $15 reduce your benefit dollar-for-dollar. With Alabama's already-low maximum benefit, even modest part-time income quickly offsets most of your UI payment. QDoes Alabama have Medicaid for unemployed adults? AAlabama has NOT expanded Medicaid under the ACA, so most unemployed single adults without children won't qualify. Families with children may qualify under very low income thresholds. Children can get ALL Kids coverage up to 200% FPL. Adults without coverage should check Healthcare.gov — losing your job is a qualifying event for immediate marketplace enrollment with premium tax credits. QWhat food assistance is available to unemployed Alabama workers? AAlabama SNAP (food assistance) covers households earning below 130% of the federal poverty level. Apply at alsoconnect.alabama.gov or your local county Department of Human Resources. Dial 2-1-1 for emergency food resources from local nonprofits as well. QWhat other assistance is available to unemployed Alabama workers? AApply at alsoconnect.alabama.gov for SNAP, ALL Kids (CHIP for children), and TANF (cash assistance for families). Apply for LIHEAP energy assistance through your county Community Action Agency or adeca.alabama.gov. Visit Alabama Career Centers for free job search help and WIOA training grants. Check Healthcare.gov for ACA marketplace health coverage. **Categories:** Government Rebates and Payments --- ### [Ohio SNAP Benefits: 2027 Outlook, Current 2026 Amounts Up to $994/Month](https://savingtoinvest.com/ohio-snap-food-stamp-program-latest-updates-and-news/) **Published:** January 30, 2023 **Author:** Andy **Content:** ### Key Takeaways - FY2026 max SNAP benefit: $298/month for 1 person, $994/month for a family of 4 - Benefits load on your Ohio Direction Card (EBT) 2nd–20th - The OBBB expanded work requirements to adults 55–64 and parents of teens — if you were exempt before, check whether you still are - Ohio uses the federal 130% FPL income limit — the minimum floor, no expansion - Apply or recertify at Ohio Benefits (ODJFS) or call 1-877-852-0010 Ohio benefits go out on the Ohio Direction Card (EBT) 2nd–20th, and the FY2026 max for a family of four ($994 a month) is already locked in — the open question now is what USDA sets for FY2027, expected in late summer. Ohio sticks to the federal SNAP income floor of 130% of the poverty line rather than expanding eligibility. 2026 has also been a more complicated year than most for SNAP. The One Big Beautiful Bill (OBBB) made some of the biggest cuts to the program in its history — and some Ohio residents who qualified last year may not qualify now. Here’s the full picture: current 2026 benefits, what changed, my 2027 outlook, and what to do if you’re denied. Covered in this Article: [Toggle](#) - [2026 SNAP Benefit Amounts in Ohio](#2026_SNAP_Benefit_Amounts_in_Ohio) - [When Does SNAP Deposit to Your Ohio EBT Card?](#When_Does_SNAP_Deposit_to_Your_Ohio_EBT_Card) - [What’s Changed in 2026: OBBB Work Requirements](#Whats_Changed_in_2026_OBBB_Work_Requirements) - [How to Qualify for Ohio SNAP in 2026](#How_to_Qualify_for_Ohio_SNAP_in_2026) - [How to Apply](#How_to_Apply) - [What to Do If Your Ohio SNAP Application Is Denied](#What_to_Do_If_Your_Ohio_SNAP_Application_Is_Denied) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) - [Where Can You Use Your Ohio EBT Card?](#Where_Can_You_Use_Your_Ohio_EBT_Card) - [Other Benefits If You Receive Ohio SNAP](#Other_Benefits_If_You_Receive_Ohio_SNAP) - [Ohio SNAP: How Benefits Have Changed (2023–2026)](#Ohio_SNAP_How_Benefits_Have_Changed_2023%E2%80%932026) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## 2026 SNAP Benefit Amounts in Ohio Ohio uses the standard federal SNAP benefit schedule. Maximum monthly allotments for FY2026 (October 1, 2025 – September 30, 2026): Household SizeMax Monthly BenefitGross Income Limit (130% FPL)Net Income Limit (100% FPL)1 person$298$1,632/mo$1,255/mo2 people$546$2,214/mo$1,703/mo3 people$785$2,798/mo$2,152/mo4 people$994$3,380/mo$2,600/mo5 people$1,183$3,964/mo$3,049/mo6 people$1,421$4,546/mo$3,497/mo7 people$1,571$5,128/mo$3,945/mo8+ people$1,791+—— **Ohio (OH) uses the federal 130% FPL income standard** — the minimum floor, no expansion. A family of four must have gross income at or below **$3,380/month** to qualify. This is one of the stricter limits nationally. Most households receive less than the maximum. Your actual benefit depends on net income after deductions (rent, utilities, child care, medical expenses for elderly or disabled members). ### How Much Would a Family of 4 Actually Receive in Ohio? Here are two realistic examples to show the range: **Scenario A — Lower-income family** A family of 4 with gross monthly income of **$1,500** (one parent working part-time): - Gross income: $1,500 ✓ (within $3,380/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$300 - Net income: $983 - 30% of net income: $295 - **Monthly SNAP benefit: $994 − $295 = $699** **Scenario B — Working family (moderate income)** A family of 4 with gross monthly income of **$2,000**: - Gross income: $2,000 ✓ (within $3,380/month limit) - Standard deduction: −$217 - 20% earned income deduction: −$400 - Net income: $1,383 - 30% of net income: $415 - **Monthly SNAP benefit: $994 − $415 = $579** The 20% earned income deduction rewards working households. Additional deductions for excess shelter costs, child care, or medical expenses (elderly/disabled) can increase your benefit further. ## When Does SNAP Deposit to Your Ohio EBT Card? Ohio (OH) distributes SNAP benefits based on the **last digit of your case number**. Benefits load between the 2nd–20th each month: Case # Last DigitDeposit Date12nd24th36th48th510th612th714th816th918th020th Your case number is on your approval letter or available through [Ohio Benefits (ODJFS)](https://jfs.ohio.gov/snap). Call **1-877-852-0010** if you’re unsure of your deposit date — it stays the same each month once you’re approved. TANF cash benefits (if applicable) follow a separate deposit schedule. ## What’s Changed in 2026: OBBB Work Requirements The OBBB made several significant changes that took effect in late 2025 and early 2026: **Expanded work requirements**: Adults aged **55–64** who are able to work are now subject to SNAP work requirements for the first time. Previously the cutoff was 49. Parents whose youngest child is **over 14** are also now subject to work rules. **20 hours per week or 80 hours per month** — that’s the threshold for Able-Bodied Adults Without Dependents (ABAWDs) aged 18–64. Work, job training, or approved volunteer activity all count. Fail to meet the requirement and benefits are limited to **3 months in any 36-month period**. **State cost-sharing starting in 2028**: States will begin paying a share of benefit costs based on their SNAP payment error rate. This is new territory for all state budgets. **$186 billion in total federal SNAP cuts** over the next decade. If you were receiving SNAP in 2024 and haven’t recertified recently, check your current eligibility — the rules have shifted. ## How to Qualify for Ohio SNAP in 2026 **Income**: Gross income must be at or below 130% FPL (see table above). Net income (after deductions) must be at or below 100% FPL. **Residency**: Must be a Ohio resident. **Citizenship**: U.S. citizens and certain lawfully present immigrants qualify. Undocumented individuals are not eligible for federal SNAP benefits. **Work requirements**: Most able-bodied adults 18–64 must register for work and accept suitable employment. ABAWDs must meet the 80-hour/month work, training, or volunteer threshold. New in 2026: adults 55–64 are now included. ## How to Apply - **Online**: [Ohio Benefits (ODJFS)](https://jfs.ohio.gov/snap) — fastest option, available 24/7 - **In person**: Any local Ohio Department of Job and Family Services office - **Phone**: 1-877-852-0010 Ohio has up to **30 days** to process your application — or **7 days** if you qualify for expedited SNAP (very low income or resources). Benefits are backdated to your application date. Things can shift quickly. I’ll update this page when anything changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## What to Do If Your Ohio SNAP Application Is Denied Denials are common and often appealable. The most frequent reasons are income slightly over the stated limit, missing documentation, and work requirement issues — all of which can be addressed. **Step 1**: Read your denial notice carefully. Ohio is required to explain the specific reason in writing. **Step 2**: Gather documentation that addresses the reason — recent pay stubs, rent receipts, proof of work activities, or a letter from your employer if hours changed. **Step 3**: Request a fair hearing within **90 days** of your denial. You can request one online at [Ohio Benefits (ODJFS)](https://jfs.ohio.gov/snap), in person at your local Ohio Department of Job and Family Services office, or by calling **1-877-852-0010**. **Step 4**: While your appeal is pending, you can continue receiving benefits if you were previously approved — request continued benefits when you file your hearing request. --- ## Looking Ahead: 2027 Outlook SNAP’s Thrifty Food Plan cost review is what actually drives next year’s benefit amount — USDA recalculates it based on food price data and updates allotments every October 1. Based on recent food-price trends, I’d expect a modest increase for FY2027, but USDA typically doesn’t confirm the exact numbers until late summer. The bigger open question is state cost-sharing. Starting in FY2027, Ohio begins paying a share of SNAP benefit costs for the first time — tied to the state’s payment error rate — so it’s worth watching whether that creates pressure on Ohio’s own eligibility administration even though the federal benefit formula itself isn’t changing. The expanded work-requirement age range (55–64) is also still being phased in; federal guidance on exactly how states verify and enforce it is still evolving. If you’re in that newly-covered range, confirm directly with your caseworker rather than assuming last year’s rules still apply. I’ll post the FY2027 numbers here as soon as USDA releases them, typically in late summer. --- ## Where Can You Use Your Ohio EBT Card? **In stores**: Any USDA-authorized retailer — including Walmart, Kroger, Meijer, ALDI, Marc’s, Giant Eagle, and most independent grocery stores. Look for the EBT/SNAP sign at checkout. **Online**: Ohio SNAP recipients can shop online through **Amazon Fresh** and **Walmart Grocery** — select SNAP/EBT as your payment method at checkout. Delivery fees are not covered by SNAP (only the groceries themselves). **Farmers markets**: Many Ohio farmers markets accept EBT. Some participate in the Double Up Food Bucks program, which matches SNAP dollars on locally-grown produce. **What SNAP does NOT cover**: Alcohol, tobacco, vitamins/supplements, hot prepared foods, fast food, pet food, household supplies, or hygiene products. ## Other Benefits If You Receive Ohio SNAP SNAP often unlocks access to other programs: - **Medicaid / CHIP**: Receiving SNAP can streamline Medicaid enrollment for adults and children. Apply through [Ohio Benefits (ODJFS)](https://jfs.ohio.gov/snap). - **LIHEAP**: Low Income Home Energy Assistance helps with utility bills. Contact your local community action agency or call 2-1-1. - **WIC**: Nutrition support for pregnant women, new mothers, and children under 5. Separate application through your state health department. - **Summer EBT (SUN Bucks)**: Extra food benefits for school-age children during summer months. Check with your state for 2026 enrollment. - **Free/reduced school meals**: SNAP households automatically qualify. Register through your child’s school district. For a full overview of federal SNAP amounts and recent cuts, see the [2026 SNAP benefits guide](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). See also: [Ohio unemployment benefit amounts and eligibility rules](https://savingtoinvest.com/ohio-unemployment-benefits/). --- ## Ohio SNAP: How Benefits Have Changed (2023–2026) PeriodMax Benefit (Family of 4)Key DevelopmentFY2023 (Oct 2022 – Sep 2023)$939/monthPandemic Emergency Allotments ended — biggest single drop since the pandemicFY2024 (Oct 2023 – Sep 2024)$973/month~3.7% COLA increase; first full year post-pandemicFY2025 (Oct 2024 – Sep 2025)$975/monthMinimal ~0.2% increase; OBBB signed into lawFY2026 (Oct 2025 – Sep 2026)$994/month~2% increase; expanded work requirements take effect The end of Emergency Allotments in early 2023 was the biggest disruption in recent memory — some households that had received the maximum saw benefits drop to $23/month. FY2026 numbers are all standard formula, no pandemic additions. ## Common Issues to Watch Out For **Missing your recertification interview.** Ohio SNAP recertification includes a phone or in-person interview as part of the renewal, and it’s easy to miss if you’re not watching for the notice. Missing it doesn’t mean automatic denial — most states, including Ohio, give you a window to call in and reschedule before your certification period actually runs out, but you have to be the one to call. If your ODJFS notice mentions an interview and you missed it, call 1-877-852-0010 and ask to reschedule right away rather than assuming it’ll sort itself out. **Not reporting income or household changes.** Ohio SNAP has interim reporting requirements between certifications — a new job, a raise, or someone moving in or out of the household can all affect your benefit. Reporting late (or not at all) is one of the most common causes of an overpayment notice down the line. **Lost or stolen EBT card.** Report it immediately at 1-877-852-0010 — Ohio Direction Cards can be skimmed like any other card, and the faster you report it, the better your odds of protecting whatever balance is left. Checking your balance and transaction history periodically through the ODJFS portal is a cheap habit that catches this early. Frequently Asked Questions QHow much is SNAP in Ohio in 2026? AThe maximum monthly SNAP benefit in Ohio (OH) for FY2026 is $298 for a single person, $546 for 2 people, $785 for 3 people, $994 for a family of 4, and $1,183 for 5 people. Most households receive less than the maximum based on net income after deductions. QWhen does SNAP deposit to my Ohio EBT card? ABenefits load 2nd–20th. Check your approval letter or Ohio Benefits (ODJFS) for your exact deposit date. QWhat are the income limits for Ohio SNAP in 2026? AOhio uses a gross income limit of 130% FPL — approximately $1,632/month for a single person or $3,380/month for a family of four. Net income (after deductions) must be at or below 100% FPL. QHow do I apply for SNAP in Ohio? AApply online at https://jfs.ohio.gov/snap, in person at a local Ohio Department of Job and Family Services (ODJFS) office, or by calling 1-877-852-0010. Processing takes up to 30 days, or 7 days if you qualify for expedited benefits. QWhat can I buy with my Ohio EBT card? ASNAP covers groceries including produce, meat, dairy, bread, cereals, and packaged foods. You can shop in-store at most major grocery chains and online through Amazon Fresh and Walmart Grocery. SNAP does not cover alcohol, tobacco, hot prepared foods, vitamins, or non-food household items. QWhat do I do if my Ohio SNAP application is denied? ARequest a fair hearing within 90 days of your denial notice. Apply online at https://jfs.ohio.gov/snap, in person at a local office, or by calling 1-877-852-0010. The agency must explain the specific reason for denial — gather documentation addressing that reason before your hearing. QDid SNAP benefits change in 2026? AYes. The One Big Beautiful Bill (OBBB) expanded work requirements to include adults aged 55–64 and parents of children over 14. It cuts federal SNAP funding by $186 billion over 10 years and shifts some benefit costs to states starting in 2028. QCan I use my Ohio EBT card at Walmart or Amazon? AYes to both. Walmart accepts Ohio EBT in-store and online at walmart.com. Amazon Fresh also accepts SNAP/EBT online — select it as your payment method at checkout. Delivery fees are not covered, only eligible food items. **Categories:** Government Rebates and Payments --- ### [Ohio Unemployment Benefits: 2027 Outlook, Current 2026 Amounts Up to $842/Week](https://savingtoinvest.com/ohio-unemployment-benefits/) **Published:** August 1, 2020 **Author:** Andy **Content:** ### Key Takeaways - Ohio's maximum weekly unemployment benefit is $624 per week in 2026 — up to $842 per week if you have up to three qualifying dependents. - Benefits last up to 26 weeks under standard conditions, though the duration can be reduced to 16 weeks during periods of low state unemployment. - Ohio allows partial unemployment benefits — you can earn up to 20% of your Weekly Benefit Amount in wages without any reduction, and earnings above that are offset dollar-for-dollar. - Ohio taxes unemployment benefits as ordinary income at the state level; federal taxes also apply, and you should plan accordingly on your Form 1099-G. - Unemployed Ohio workers can also access Medicaid, SNAP, Ohio Works First (cash assistance), and Ohio's Home Energy Assistance Program (HEAP). Ohio’s unemployment insurance program — run by the [Ohio Department of Job and Family Services (ODJFS)](https://jfs.ohio.gov/) — pays benefits for up to 26 weeks, with a meaningful boost for workers who have dependents. The 2026 maximum weekly benefit ($624, or up to $842 with dependents) is already locked in — the open question now is what ODJFS sets for 2027, expected late this year. Here’s the full picture: current 2026 benefits, eligibility, partial UI rules, taxes, my 2027 outlook, and what other programs you can access. Covered in this Article: [Toggle](#) - [2026 Benefit Amounts and Duration](#2026_Benefit_Amounts_and_Duration) - [Who Qualifies](#Who_Qualifies) - [Partial Unemployment for Part-Time Workers and Reduced Hours](#Partial_Unemployment_for_Part-Time_Workers_and_Reduced_Hours) - [Tax Implications of Ohio Unemployment Benefits](#Tax_Implications_of_Ohio_Unemployment_Benefits) - [How to File](#How_to_File) - [Other Benefits Available to Unemployed Ohio Workers](#Other_Benefits_Available_to_Unemployed_Ohio_Workers) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## 2026 Benefit Amounts and Duration Ohio’s maximum weekly benefit amount for 2026 is **$624 per week** for individual claimants. Workers with qualifying dependents receive higher amounts — the maximum rises to **$703 with one dependent**, **$771 with two**, and **$842 with three or more dependents**. Benefits generally last up to **26 weeks**. However, Ohio ties its maximum weeks to the state’s unemployment rate — when the state unemployment rate is below certain thresholds, the maximum duration can be reduced to as few as **16 weeks**. Always check your initial monetary determination from ODJFS for your specific maximum weeks. Your Weekly Benefit Amount is set at 50% of your average weekly wage during the base period (typically the first four of the last five completed calendar quarters), up to the state maximum. See how **Ohio UI benefits** compare to other states at our [national unemployment benefits comparison](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/) table and [Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get the latest updates as Ohio’s benefit rules evolve. ## Who Qualifies To receive Ohio UI, you must: - Have worked in Ohio during the base period and earned at least **$280 in two of the four base period quarters** - Have earned wages in at least **two quarters** of the base period - Have earned at least 27.5% of your total base period wages in one quarter - Be unemployed through no fault of your own (laid off, position eliminated, company closed) - Be able to work, available for work, and actively seeking employment Ohio considers “dependents” to be children under 18 (or up to 23 if enrolled in school), a spouse who earned less than $412 per week in the prior year, or other qualifying family members. Dependents must be claimed when you file and verified with documentation. Workers fired for “just cause” or who quit without good cause are typically ineligible. Ohio does recognize certain good cause resignations — documented harassment, unsafe working conditions, or a medically necessary reason verified by a physician. ## Partial Unemployment for Part-Time Workers and Reduced Hours Ohio allows partial unemployment benefits under its “underemployment” provisions. The formula uses a **20% earnings disregard**: wages up to 20% of your WBA don’t reduce your benefit at all. Earnings above that amount are subtracted dollar-for-dollar. For example, if your WBA is $500, you can earn up to $100 per week with no effect on your payment. Earn $200 and you’d lose $100 in benefits, receiving $400 for that week instead of $500. This applies both to workers whose hours were reduced by their current employer and those who found part-time work after being laid off. The key requirement is that you still meet the availability and work-search requirements, and that you report all wages honestly when certifying each week. Ohio also has a SharedWork Ohio program — an alternative to layoffs where employers can reduce hours for groups of employees by 10–50% while those employees collect partial UI. If your employer participates in SharedWork Ohio, your UI benefit is prorated to match your lost hours rather than requiring a traditional layoff. ## Tax Implications of Ohio Unemployment Benefits Ohio taxes unemployment compensation as ordinary income at the **state level**. Ohio uses a graduated income tax rate structure; rates for 2026 top out at around 3.5% on income above $115,300. Your actual rate depends on your total income for the year. At the **federal level**, UI is taxable as ordinary income. You’ll receive a Form 1099-G from ODJFS in January showing your total benefits received — if you’re trying to plan around when that affects your refund, my [IRS refund schedule guide](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) breaks down the typical timing. You can elect federal income tax withholding at a flat 10% from your weekly benefit payments by indicating that preference in your Ohio Jobs and Family Services online account at unemployment.ohio.gov. Ohio allows optional state income tax withholding as well — you can elect 4% withholding on state taxes from your UI payments. Setting up both withholding elections when you file is the easiest way to avoid owing a large balance at tax time — worth checking my [tax filing dates and deadlines guide](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) closer to filing season so you know exactly when everything’s due. ## How to File File your Ohio UI claim at **unemployment.ohio.gov** or call 877-644-6562. You’ll need your Social Security number, recent employment history (employers, dates, and addresses), and bank routing information for direct deposit. There’s a **one-week waiting period** — your first eligible week is unpaid. After approval, you must certify weekly online or by phone to confirm you’re still unemployed, actively looking for work, and report any wages earned. Ohio requires at least **two job contacts per week** as a condition of receiving benefits. If denied, you have **21 days** from the mailing date to appeal to the Unemployment Compensation Review Commission. ## Other Benefits Available to Unemployed Ohio Workers UI doesn’t run as long as a job search often takes, so knowing what else you can access matters. **Medicaid**: Ohio expanded Medicaid under the ACA. If your income falls below 138% of the federal poverty level (about $20,120 for one person in 2026), you can get free or very low cost health coverage. Apply at benefits.ohio.gov. **SNAP (Supplemental Nutrition Assistance Program)**: Food assistance is available to households with income below 130% of the federal poverty level. Ohio SNAP provides an EBT card loaded monthly — see my [full Ohio SNAP guide](https://savingtoinvest.com/ohio-snap-food-stamp-program-latest-updates-and-news/) for current benefit amounts and deposit schedule. Apply at benefits.ohio.gov alongside Medicaid. **Ohio Works First (OWF)**: Ohio’s cash assistance program provides monthly payments to families with children who are working toward self-sufficiency. If you have dependents, OWF may provide a temporary bridge while you’re between jobs. Contact your county Department of Job and Family Services. **Home Energy Assistance Program (HEAP)**: Ohio’s HEAP program helps income-eligible households pay electric and gas bills. Standard HEAP runs from November through March. A Summer HEAP component also covers cooling costs. Apply through your county Department of Job and Family Services or at energyhelp.ohio.gov. **Ohio Benefits**: Ohio’s integrated benefits portal (benefits.ohio.gov) handles applications for Medicaid, SNAP, CHIP, OWF, and other programs in a single online application. If you’ve just lost your job, applying here takes about 20–30 minutes and screens you for everything at once. **OhioMeansJobs**: Ohio’s workforce development network offers free job search assistance, resume review, skills training funding, and trade adjustment assistance at centers throughout the state. Using OhioMeansJobs services also satisfies the work-search requirement. ## Looking Ahead: 2027 Outlook Ohio’s maximum weekly benefit adjusts each year based on the state’s average weekly wage — ODJFS typically finalizes the new cap in the fourth quarter, with the updated amount taking effect the first week of January. Based on recent wage growth, I’d expect the 2027 maximum to land somewhere modestly above this year’s $624, though ODJFS hasn’t published an official number yet. The bigger variable to watch is duration. Ohio’s sliding scale ties maximum weeks to the state’s unemployment rate, so if that rate moves meaningfully over the next few months, the maximum weeks available in 2027 could shift too — currently anywhere from 16 to 26 depending on conditions. I’m not seeing any major state legislative pushes to change UI eligibility or benefit structure as of this writing, but that’s exactly the kind of thing that can move quickly. I’ll update this page as ODJFS releases the 2027 figures, typically late in the year. ## Common Issues to Watch Out For **Overpayment notices and waivers.** If ODJFS later determines you were paid more than you should have been — a common trigger is a delayed employer wage report or a mistake on a weekly certification — you’ll get an overpayment notice. Non-fraud overpayments (agency error or an honest mistake) can often be waived or set up on a repayment plan; fraud overpayments generally can’t be waived and carry a penalty on top of repayment. If you get one of these notices, don’t ignore it — respond by the deadline and ask ODJFS specifically about a waiver at 877-644-6562 if you believe it wasn’t your fault. **Missing a weekly job-contact record.** Ohio requires two job contacts a week, and ODJFS can ask you to document them retroactively. I’ve seen claimants get denied weeks later simply because they hadn’t kept a record — save the company name, date, and how you applied for every contact as you go, not after the fact. **Letting dependent status lapse.** If your qualifying dependent’s situation changes — a spouse starts earning more than $412/week, for instance — you’re required to update it. Getting the dependent allowance on a claim ODJFS later finds you weren’t eligible for turns into its own overpayment problem. --- Frequently Asked Questions QWhat is Ohio's maximum weekly unemployment benefit in 2026? AThe maximum is $624 per week without dependents. With one qualifying dependent it's $703, two dependents $771, and three or more dependents $842. Benefits last up to 26 weeks (or as few as 16 weeks when state unemployment is low). QDoes Ohio tax unemployment benefits? AYes. Ohio taxes UI as ordinary income at the state level using a graduated rate structure (rates top out around 3.5% for 2026). Federal income tax also applies. You can elect withholding at 10% (federal) and 4% (state) from your weekly payments through your ODJFS online account. QCan I work part-time and still receive Ohio unemployment? AYes. Ohio allows you to earn up to 20% of your Weekly Benefit Amount without any reduction. Wages above that disregard are subtracted dollar-for-dollar from your benefit. Report all earnings when you certify each week. QWhat is SharedWork Ohio? ASharedWork Ohio is a layoff-avoidance program where employers reduce hours by 10–50% for groups of employees, who then collect partial UI to offset the lost income. It's an alternative to layoffs — ask your employer about it if your company is facing cuts. QHow long does it take to receive Ohio unemployment benefits? AAfter filing, initial processing typically takes 3–4 weeks. There's a one-week waiting period before benefits begin. Certify that first week even though it's unpaid — it must appear in your record for your benefit year to start. QWhat other assistance can Ohio unemployed workers access? AApply at benefits.ohio.gov for Medicaid, SNAP, CHIP, and Ohio Works First (cash assistance for families with children). Ohio's HEAP program covers home energy costs. OhioMeansJobs centers offer free job search and retraining services statewide. **Categories:** Government Rebates and Payments --- ### [Teaching Kids to Invest in 2026 — From Piggy Banks to Trump Accounts](https://savingtoinvest.com/investing-lessons-for-young/) **Published:** July 11, 2008 **Author:** Andy **Content:** ### Key Takeaways - The lesson that sticks isn't a lecture - it's a savings goal your child picks themselves, with real money and a real timeline. - A matching program (you match every dollar they save) is one of the most effective ways to make the payoff of saving feel immediate to a kid. - The federal Trump Accounts program, which launched July 4, 2026, seeds a $1,000 account for eligible children - a real, current example to teach compounding with actual numbers. - Kids don't need to understand markets to start - a simple high-yield savings account where they can watch the balance grow online is a good first step from the piggy bank. - Staying involved (reviewing statements together, showing your own investing habits) matters more than any single lesson - kids learn from what they see you do, not just what you say. Teaching a child to save doesn’t start with a lecture about the stock market — it starts with a goal they actually want and real money they control. Here’s a practical, step-by-step approach, plus a genuinely new tool: the federal Trump Accounts program that launched July 4, 2026. Covered in this Article: [Toggle](#) - [Step 1: The Value of Saving Toward a Goal](#Step_1_The_Value_of_Saving_Toward_a_Goal) - [Step 2: Moving From Piggy Bank to Real Account](#Step_2_Moving_From_Piggy_Bank_to_Real_Account) - [New in 2026: Trump Accounts](#New_in_2026_Trump_Accounts) - [Step 3: Stay Involved](#Step_3_Stay_Involved) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## Step 1: The Value of Saving Toward a Goal Start with something your child actually wants — they’ve probably already mentioned it. Figure out the cost together, then work out how they’ll save for it using allowance or money from chores. Give them real choices in how they get there: save all of their allowance for a shorter stretch, or half of it for twice as long. That decision-making is the actual lesson — not the saving itself, but weighing tradeoffs with their own money. ## Step 2: Moving From Piggy Bank to Real Account Once a child has practiced saving toward a goal, the next step is showing them how money can earn more money. This is where [compounding](https://savingtoinvest.com/power-of-compounding-1-million-now-or/) becomes concrete rather than abstract — a simple online high-yield savings account where they can watch the balance grow is a natural first step up from a piggy bank. A matching program works well here: for every dollar your child saves, you match it with a dollar of your own. The immediate, visible payoff makes the abstract idea of “your money grows” feel real in a way that a lecture never will. As savings from allowance, babysitting, or a first job grow, introducing a simple mutual fund or custodial brokerage account is a reasonable next step. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates.* ## New in 2026: Trump Accounts The federal [Trump Accounts program](https://savingtoinvest.com/trump-accounts-creating-a-generation-of-savers-with-the-1000-american-baby-bonus/) launched July 4, 2026, seeding a $1,000 government contribution into an investment account for eligible children. This is worth using as a real, current teaching example rather than a hypothetical — it’s an actual account with an actual starting balance that illustrates long-horizon compounding better than any made-up number. If your child has a Trump Account, walking through what that $1,000 could realistically grow to by the time they’re an adult — using the same math from the [compounding post](https://savingtoinvest.com/power-of-compounding-1-million-now-or/) — turns an abstract government program into a concrete, personal lesson about time and growth. ## Step 3: Stay Involved Kids look to their parents as their primary source of financial information, which makes ongoing involvement more valuable than any single lesson. Go over account statements together periodically. If they’re in a fund, show them how to check its value. Talk about your own investing history — what’s worked, what hasn’t — in plain terms. The most important part is modeling the behavior. Kids notice whether the adults around them actually practice what they’re being taught, and that observation shapes their habits more than any conversation does. ## Common Issues to Watch Out For I get questions about this a lot, so here’s what trips people up most often. **Making it abstract instead of concrete.** “Investing is important” doesn’t land the way “here’s what your $1,000 could be worth in 20 years” does. Use real numbers and real accounts wherever possible. **Skipping the goal-setting step.** Jumping straight to opening an investment account without first practicing goal-based saving misses the part that actually builds the habit. **Forgetting to model the behavior yourself.** Kids are unusually good at detecting a gap between what they’re told and what they observe. If saving and investing aren’t visibly part of your own routine, the lesson doesn’t stick as well. **Overcomplicating the first account.** A simple high-yield savings account or a basic custodial brokerage account is plenty to start — save the deeper investing concepts for once the saving habit is established. **Related reading:** - [The Power of Compounding](https://savingtoinvest.com/power-of-compounding-1-million-now-or/) - [Trump Accounts: The $1,000 American Baby Bonus](https://savingtoinvest.com/trump-accounts-creating-a-generation-of-savers-with-the-1000-american-baby-bonus/) - [The Importance of Portfolio Diversification](https://savingtoinvest.com/importance-of-diversification/) - [Child Tax Credit (CTC) and Kiddie Tax](https://savingtoinvest.com/child-and-kiddie-tax-credit-and-income-thresholds/) Frequently Asked Questions QWhat is the best first investment account for a child? AA simple high-yield savings account is a good first step up from a piggy bank - it lets kids watch their balance grow online with no risk. From there, a basic custodial brokerage account or mutual fund is a reasonable next step as their savings grow. QWhat are Trump Accounts? AA federal program that launched July 4, 2026, seeding a $1,000 government contribution into an investment account for eligible children - designed to give kids a real head start on long-term investing and compounding. QHow does a savings matching program work for kids? AYou match every dollar your child saves with a dollar of your own, up to whatever limit you set. It makes the reward for saving immediate and visible, which reinforces the habit more effectively than an abstract explanation. QAt what age should I start teaching my child about investing? AThere's no fixed age - the goal-setting and saving lessons can start as soon as a child understands wanting something and having to save for it, often around age 5-7. More advanced concepts like compounding and investment accounts typically make more sense once they're earning some of their own money, like from chores or a first job. QHow important is it to model good financial habits myself? AVery. Kids tend to notice whether the adults around them actually practice the saving and investing habits they're being taught, and that observed behavior shapes their own habits more than direct instruction does. **Categories:** Finance and Investing 101 **Tags:** investing, kids, money --- ### [2026-2027 FSA Contribution Limits — Health Care and Dependent Care (Major Increase to DCFSA)](https://savingtoinvest.com/flexible-and-dependent-care-spending-accounts-fsa-contribution-limits/) **Published:** November 9, 2010 **Author:** Andy **Content:** ### Key Takeaways - The 2026 Health Care FSA limit is $3,400 per employee, up $100 from $3,300 in 2025. - The maximum carryover for Health FSA is $680 in 2026 (up from $660 in 2025). - The Dependent Care FSA (DCFSA) limit jumps to $7,500 for married filing jointly and single filers in 2026 - the first increase since 1986. - The DCFSA increase was made permanent by the One Big Beautiful Bill (OBBB), signed in 2025. It is not indexed for inflation and stays at $7,500 until Congress changes it again. - DCFSA for married filing separately remains at $3,750 (was $2,500). - Unlike HSAs, FSA funds generally must be used within the plan year - there is no permanent rollover. Employers may offer either a carryover (up to $680) or a 2.5-month grace period, but not both. - FSA contributions reduce your taxable income - no federal income tax or FICA on amounts contributed through payroll. FSAs don’t get nearly the attention they deserve. Every year during open enrollment, I see people scroll past the FSA election screen without a second thought — and that’s money left on the table. The basic idea is straightforward: you elect a dollar amount before the year starts, it comes out of your paycheck pre-tax, and you use it for eligible medical or dependent care expenses. No federal income tax, no FICA. If you’re in the 22% bracket and elect the full $3,400 Health FSA, you’re saving over $1,000 in taxes before you spend a single dollar. The money was already going to come out of your pocket for doctor visits, prescriptions, and dental work — the FSA just lets you do it with pre-tax dollars. The Dependent Care FSA is a different animal, and 2026 brings its most significant update in decades. The limit was stuck at $5,000 since 1986 — which, adjusted for inflation, is worth far less than it was when Reagan was president. The One Big Beautiful Bill (OBBB), passed in 2025, permanently bumped it to $7,500 for most households. If you’re paying for child care or elder care, this is the biggest DCFSA news in 40 years. The caveat with FSAs that trips people up: unlike an HSA, you generally can’t roll unused funds into the next year. Elect too much and you may forfeit what’s left. I’ll walk through the use-it-or-lose-it rules below, along with how to estimate what you actually need. Here are the 2026 limits and everything you need to know about both account types. Covered in this Article: [Toggle](#) - [2026 FSA Contribution Limits](#2026_FSA_Contribution_Limits) - [Big News: The Dependent Care FSA Jumps to $7,500 in 2026](#Big_News_The_Dependent_Care_FSA_Jumps_to_7500_in_2026) - [Health Care FSA: What It Covers](#Health_Care_FSA_What_It_Covers) - [Example: Health Care FSA Tax Savings](#Example_Health_Care_FSA_Tax_Savings) - [Dependent Care FSA: What It Covers](#Dependent_Care_FSA_What_It_Covers) - [Example: DCFSA Under the New $7,500 Limit](#Example_DCFSA_Under_the_New_7500_Limit) - [Use-It-or-Lose-It: The Critical FSA Caution](#Use-It-or-Lose-It_The_Critical_FSA_Caution) - [HSA vs. FSA: Which Is Better?](#HSA_vs_FSA_Which_Is_Better) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027](#Looking_Ahead_2027) ## 2026 FSA Contribution Limits Account Type20232024202520262027 (est.)Health Care FSA (per employee)$3,050$3,200$3,300**$3,400**~$3,500Health FSA carryover (optional)$610$640$660**$680**~$700Dependent Care FSA — MFJ / single$5,000$5,000$5,000**$7,500**$7,500\*Dependent Care FSA — MFS$2,500$2,500$2,500**$3,750**$3,750\* \*DCFSA limit is statutory and not indexed for inflation. It stays at $7,500 until Congress acts again. **Looking ahead to 2027:** The Health Care FSA should continue its inflation-adjusted path and reach approximately **$3,500** in 2027, with a carryover limit around **$700**. Official 2027 figures typically drop in October or November 2026. The DCFSA stays fixed at $7,500 — no inflation adjustment built in. > *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get notified when 2027 FSA limits are released in the fall.* ## Big News: The Dependent Care FSA Jumps to $7,500 in 2026 The DCFSA limit of $5,000 had been unchanged since 1986 — a 40-year freeze that quietly eroded its purchasing power. In dollar terms, $5,000 in 1986 is worth roughly $14,000 today. Child care costs have risen even faster than general inflation. The One Big Beautiful Bill (OBBB), passed in 2025, permanently raised the DCFSA limit to **$7,500** for married couples filing jointly and single filers, and to **$3,750** for married filing separately. The catch: this limit is **not indexed for inflation**. Congress set a fixed dollar amount rather than an annually adjusting figure — meaning the new $7,500 ceiling could sit unchanged for another decade or more unless future legislation acts on it. It’s a real win for families, but it’s worth noting the mechanism. Employers are not required to adopt the new $7,500 limit under their plans. If your employer’s plan document caps DCFSA contributions at the old $5,000, you’re limited to that amount until your employer amends the plan. Check with your HR or benefits team to confirm which limit applies to you for 2026. ## Health Care FSA: What It Covers A Health Care FSA lets you set aside pre-tax dollars for eligible out-of-pocket medical, dental, and vision expenses. The account is funded through payroll deductions, and contributions reduce your taxable income for federal income tax and FICA purposes. Unlike an HSA, you don’t need to be on a high-deductible health plan. Health Care FSAs are available with PPO, HMO, and other plan types. Eligible expenses are broad — doctor copays, prescriptions, dental care, vision, certain OTC medications (no longer require a prescription as of 2020), and qualified mental health services, among others. The [IRS Publication 502](https://www.irs.gov/publications/p502) has the full eligible expense list. One notable feature: your full annual FSA election is available from January 1, even if you haven’t contributed that much through payroll yet. If you elect $3,400 and have a large dental bill in February, you can use the full $3,400 immediately — and the payroll deductions pay it back over the rest of the year. ### Example: Health Care FSA Tax Savings **David**, 40, earns $85,000 and elects $3,400 into a Health FSA for 2026. He’s in the 22% federal bracket. - Federal tax savings: $3,400 × 22% = **$748** - FICA savings: $3,400 × 7.65% = **$260** - Total tax savings: roughly **$1,008** — just from electing the FSA He spends the funds on dental work and prescriptions throughout the year. Effectively, he gets $3,400 in medical spending at a cost of about $2,392 after tax savings. ## Dependent Care FSA: What It Covers A Dependent Care FSA (DCFSA) covers eligible dependent care expenses that allow you (and your spouse, if married) to work or actively look for work. Coverage includes: - Day care and preschool for children under age 13 - Before- and after-school programs - Qualified summer day camps (not overnight camps) - Elder care for a disabled or elderly dependent who lives with you and whom you claim as a dependent The DCFSA limit applies **per household**, not per person. Even if both spouses have separate DCFSA accounts through different employers, they cannot each contribute the maximum — the combined household limit is $7,500 ($3,750 each for married filing separately). **Important:** You cannot claim the [Child and Dependent Care Tax Credit (Form 2441)](https://www.irs.gov/forms-pubs/about-form-2441) for the same expenses you reimburse through a DCFSA. No double-dipping. In most cases, the DCFSA is the better deal for middle-to-higher income households because the pre-tax savings are worth more than the credit, but run the math for your specific income and number of dependents. ### Example: DCFSA Under the New $7,500 Limit **Rachel and Tom**, married filing jointly, pay $14,000/year in day care for their two kids. They each contribute $3,750 from their respective employer DCFSAs (combined $7,500) in 2026. - Combined federal tax savings (24% bracket): $7,500 × 24% = **$1,800** - FICA savings: $7,500 × 7.65% = **$574** - Total savings vs. 2025 ($5,000 DCFSA): they now shelter an additional $2,500 pre-tax — worth roughly **$790 more** in tax savings per year Over the prior $5,000 limit, the new ceiling saves a family in the 24% bracket approximately $790/year in additional taxes. Not massive — but meaningful. ## Use-It-or-Lose-It: The Critical FSA Caution FSA funds don’t roll over the way HSA funds do. Unused Health Care FSA balances at the end of the plan year are forfeited to the employer — not refunded to you. This is the “use-it-or-lose-it” rule. **Two optional employer safety valves (employers may offer one, not both):** 1. **Carryover:** Up to $680 in unused Health Care FSA funds (2026 limit) can be carried into the next plan year. The carryover doesn’t reduce your following year’s contribution limit. 2. **Grace period:** A 2.5-month extension gives you until March 15 of the following year to spend prior-year FSA balances. Dependent Care FSAs do not offer a carryover option. Any unspent DCFSA balance is also forfeited. The practical implication: estimate your annual expenses carefully during open enrollment. Review the prior year’s EOBs, prescription costs, and known upcoming expenses (braces, new glasses, planned procedures). It’s generally better to under-elect slightly than to over-elect and forfeit funds. ## HSA vs. FSA: Which Is Better? If you’re on an HDHP and have access to both options, the [HSA](https://savingtoinvest.com/hsa-limits-and-tax-rules-how-to-best-utilize-health-savings-accounts/) usually wins for long-term health savings because funds roll over indefinitely and can be invested. The FSA is better suited for predictable, near-term medical spending where you want the immediate tax break without the investment complexity. A few households use both: a Limited Purpose FSA (for dental and vision only) alongside an HSA, which lets you preserve the HSA for investment while using the FSA for predictable costs. ## Common Issues to Watch Out For **1. Electing too much and forfeiting funds.** I see this happen a lot, especially in January when people are optimistic about the year ahead. If you don’t have a clear view of your expected medical spending, be conservative. A forfeited $500 hurts more than the tax savings help. **2. Not checking if your employer adopted the new $7,500 DCFSA limit.** The OBBB raised the limit, but employers must amend their plan documents to allow contributions above $5,000. Many employers are still updating plans for 2026. If your benefits portal still shows $5,000 for DCFSA, ask HR if they’ve adopted the new limit. **3. Using DCFSA funds and also claiming the Child and Dependent Care Credit for the same expenses.** Form 2441 asks you to reduce your eligible expenses by any amount reimbursed through a DCFSA. Using both on the same expense is an error that the IRS will catch. **4. Losing access when you change employers.** FSA accounts (both types) are employer-sponsored. If you leave your job, your FSA usually ends — you can only claim expenses incurred while you were enrolled and before the termination date. COBRA continuation may allow you to extend FSA coverage, but at full cost. **5. Missing the enrollment window.** Unlike IRAs, you cannot open or fund an FSA after the plan year starts (barring a qualifying life event like marriage, birth, or loss of other coverage). If you miss open enrollment, you’re locked out for the year. This is a common regret I hear from readers — especially for the DCFSA when childcare costs hit. ## Looking Ahead: 2027 Account Type20262027 (est.)Health Care FSA$3,400~$3,500Health FSA carryover$680~$700Dependent Care FSA (MFJ/single)$7,500$7,500 (fixed)Dependent Care FSA (MFS)$3,750$3,750 (fixed) The Health Care FSA will likely see another small inflation adjustment. The DCFSA is statutory and won’t change absent new legislation. Official 2027 limits are typically released in October or November 2026. One underappreciated benefit of both FSA types: contributions reduce your taxable income, which can push you into eligibility (or a higher tier) for the [Saver’s Credit](https://savingtoinvest.com/savers-tax-credit-and-income-limits-to-help-workers-save-for-retirement/) — a credit worth up to $1,000 per person for contributions to retirement accounts. Worth checking if you’re near an income threshold. For a full picture of tax-advantaged accounts including HSA limits, see our [HSA contribution limits guide](https://savingtoinvest.com/hsa-limits-and-tax-rules-how-to-best-utilize-health-savings-accounts/) and the [401(k) and IRA limits hub](https://savingtoinvest.com/401k-ira-and-roth-ira-contribution-and-income-limits/). Frequently Asked Questions QWhat is the Health Care FSA contribution limit for 2026? AThe 2026 Health Care FSA contribution limit is $3,400 per employee, up $100 from $3,300 in 2025. Employers may optionally allow a carryover of up to $680 in unused funds into the following year, or offer a 2.5-month grace period - but not both. QWhat is the Dependent Care FSA limit for 2026? AThe 2026 Dependent Care FSA limit increased to $7,500 for married filing jointly and single filers, up from $5,000. For married filing separately, the limit is $3,750 (up from $2,500). This is the first increase since 1986, enacted through the One Big Beautiful Bill (OBBB). The new limit is not indexed for inflation. QDo I lose FSA funds if I don't use them by year-end? AGenerally yes - this is the use-it-or-lose-it rule. However, your employer may offer either a carryover of up to $680 in unused Health Care FSA funds into the following year, or a 2.5-month grace period through March 15. Dependent Care FSAs do not have a carryover option. Check your employer's plan documents to see which, if any, option applies. QCan I have both an HSA and a Health Care FSA? ANot in most cases. A standard Health Care FSA and an HSA cannot be used together - having an FSA that covers general medical expenses makes you ineligible to contribute to an HSA. The exception is a Limited Purpose FSA, which is restricted to dental and vision expenses only, and can be paired with an HSA. QIs the Dependent Care FSA increase to $7,500 automatic for my plan? ANo. Employers must amend their Section 125 cafeteria plan documents to allow contributions above $5,000 for DCFSA. If your employer hasn't updated their plan, you may still be limited to the prior $5,000 cap for 2026. Check with HR or your benefits administrator to confirm which limit applies. QCan both spouses contribute to a Dependent Care FSA? AThe $7,500 DCFSA limit is a per-household maximum, not a per-person limit. If both spouses have DCFSA access through their separate employers, they can each contribute - but the combined total cannot exceed $7,500 ($3,750 each). Exceeding the household maximum creates excess contributions that are taxable. **Categories:** Insurance **Tags:** FSA, health care, health insurance, HSA --- ### [401(k) vs. 403(b) vs. 457(b) vs. TSP: 2026–2027 Contribution Limits Compared](https://savingtoinvest.com/taking-advantage-of-new-401k/) **Published:** October 22, 2015 **Author:** Andy **Content:** ### Key Takeaways - 401(k), 403(b), and TSP plans share one combined $24,500 employee deferral limit in 2026 - if you have more than one of these in the same year, your contributions across all of them still cap out at $24,500 total. - Governmental 457(b) plans are the outlier: they get their own separate $24,500 limit under IRS rules, so a nonprofit or public-sector worker with both a 403(b) and a governmental 457(b) can defer up to $49,000 combined in 2026. - Non-governmental ('top-hat') 457(b) plans, offered by some tax-exempt employers to executives, don't get the same protection - the money stays a general asset of the employer and is at risk if the employer goes bankrupt. - TSP is functionally the federal employee's 401(k): same $24,500 limit, same catch-up rules, but with agency automatic 1% contributions and a 'spillover' method that applies catch-up money without a separate election. - 401(a) plans are a different animal from 401(k) - they're usually mandatory, employer-set contribution plans (common for state/local government workers) rather than an elective paycheck deferral. - Catch-up contributions (age 50+, and the 60-63 super catch-up) work the same way dollar-for-dollar across 401(k), 403(b), and TSP - see the full catch-up breakdown linked below for the mechanics. If you’ve ever had a 401(k) at one job and a 403(b) at the next, you’ve probably wondered whether the IRS treats them as the same thing. Mostly, yes — 401(k), 403(b), and TSP plans all share one combined **$24,500** employee deferral limit for 2026. The exception is the 457(b), and it’s a bigger exception than most people realize. Covered in this Article: [Toggle](#) - [The $24,500 Limit Is Shared — Except for One Plan Type](#The_24500_Limit_Is_Shared_%E2%80%94_Except_for_One_Plan_Type) - [401(k) vs. 403(b): What Actually Differs](#401k_vs_403b_What_Actually_Differs) - [457(b): Governmental vs. Non-Governmental — A Real Difference](#457b_Governmental_vs_Non-Governmental_%E2%80%94_A_Real_Difference) - [TSP: The Federal Employee’s Version](#TSP_The_Federal_Employees_Version) - [401(a) Isn’t the Same as 401(k)](#401a_Isnt_the_Same_as_401k) - [What About IRAs, SIMPLE IRAs, and SEP-IRAs?](#What_About_IRAs_SIMPLE_IRAs_and_SEP-IRAs) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## The $24,500 Limit Is Shared — Except for One Plan Type The IRS calls this the Section 402(g) aggregate limit, and it applies across every 401(k), 403(b), and TSP account you personally contribute to in a calendar year, no matter how many employers issued them. Two different 401(k)s in the same year from a job change? Still one shared $24,500 cap. Governmental 457(b) plans don’t fall under that aggregate limit. The [IRS explicitly carves them out](https://www.irs.gov/retirement-plans/how-much-salary-can-you-defer-if-youre-eligible-for-more-than-one-retirement-plan) — a 457(b) has its own, completely separate $24,500 limit in 2026. That means a public school teacher with a 403(b) and a state-offered governmental 457(b) can defer up to $24,500 into each — **$49,000 total** — in the same year. I see this trip up a lot of nonprofit and government employees who assume all their retirement accounts share one pool, the way 401(k)s and 403(b)s do. Plan Type2026 Employee LimitShares the 402(g) Cap?Typical Employer401(k)$24,500YesPrivate-sector for-profit403(b)$24,500YesNonprofits, schools, hospitalsTSP$24,500YesFederal government457(b) — governmental$24,500 (separate)No — stacks on topState/local government457(b) — non-governmental$24,500 (separate, but different rules)NoCertain nonprofit executives401(a)Set by employer, often mandatoryN/A — not elective deferralState/local government *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get notified when the IRS confirms 2027 limits this fall.* ## 401(k) vs. 403(b): What Actually Differs For most workers, the practical difference between a 401(k) and a 403(b) comes down to who’s offering it, not the tax mechanics. 401(k)s are the default at private, for-profit employers. 403(b)s show up at nonprofits, public schools, hospitals, and religious organizations. The contribution limits, catch-up rules, and Roth options are essentially identical between the two. Where they can diverge is investment menu — 403(b)s have historically leaned on annuity products with higher fees, though most modern plans now offer low-cost mutual funds and ETFs too. One 403(b)-only perk worth knowing: employees with 15+ years at a qualifying nonprofit or school may be eligible for an *additional* catch-up contribution on top of the standard age-50 catch-up. I cover the mechanics of that 15-year rule, along with every other catch-up scenario across plan types, in my [full catch-up contribution guide](https://savingtoinvest.com/when-can-i-make-catch-up-contributions-to-401k-ira-403b-and-simple-ira-retirement-plans/). If your employer offers a straightforward 401(k) with no 403(b)/457(b) complexity, my [401(k)-specific contribution and catch-up breakdown](https://savingtoinvest.com/maximum-employee-and-employer-401k-contribution-limits-and-catch-up-amounts/) walks through employer match, vesting, and automatic enrollment in more depth than I can fit here. ## 457(b): Governmental vs. Non-Governmental — A Real Difference Not all 457(b) plans are created equal, and this is the part I see glossed over most often. **Governmental 457(b) plans** — offered by state and local government employers — get the separate $24,500 limit described above, and the money sits in a trust that’s protected from the employer’s creditors, just like a 401(k) or 403(b). **Non-governmental 457(b) plans** — sometimes called “top-hat” plans — are offered by certain tax-exempt organizations (think large nonprofits, hospital systems) to a select group of executives or highly compensated employees. These are legally structured as unsecured promises to pay, not trust assets. If the employer goes bankrupt, participants in a non-governmental 457(b) are treated as general creditors, right alongside anyone else the company owes money to. That’s a meaningfully different risk profile from a 401(k) or governmental 457(b), and it’s worth understanding before you defer a large chunk of compensation into one. See the [IRS’s own explanation of 457(b) plan rules](https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-457b-contribution-limits) for the full distinction. One upside 457(b)s do offer, governmental or not: no 10% early withdrawal penalty after you separate from service, regardless of age. That’s different from a 401(k) or 403(b), where early withdrawals before 59½ usually trigger the penalty on top of ordinary income tax. ## TSP: The Federal Employee’s Version The Thrift Savings Plan is the federal government’s version of a 401(k), and it runs on the same $24,500 employee limit and the same catch-up rules for 2026. A few things make TSP distinct. Federal employees under FERS get an automatic 1% agency contribution regardless of whether they contribute anything themselves, plus a match on the first 5% they defer. TSP also uses a “spillover” method for catch-up contributions — once you hit the regular $24,500 limit, eligible contributions automatically start counting as catch-up instead, with no separate catch-up election needed. See the [TSP’s own 2026 contribution limit bulletin](https://www.tsp.gov/bulletins/25-3/) for the official figures and fund-specific details. ## 401(a) Isn’t the Same as 401(k) If you work for state or local government, you may have a 401(a) plan instead of — or alongside — a 401(k). The names look similar, but they work differently. A 401(a) is typically a **mandatory**, employer-designed plan where the contribution rate (often a fixed percentage of salary) is set by the employer, not chosen freely by the employee. Some public employers use 401(a) plans for their base retirement contribution and then offer a voluntary 401(k) or 457(b) on top for additional savings. If your pay stub shows a “401a” deduction you didn’t sign up for, that’s very likely what’s happening. **Example — Priya, stacking a 403(b) and a governmental 457(b):** Priya works at a public hospital system that offers both a 403(b) and a state governmental 457(b). She’s 45 and wants to save aggressively. Because the two plans don’t share the 402(g) limit, she can defer $24,500 into her 403(b) *and* $24,500 into her 457(b) — $49,000 total for 2026 — well beyond what a single-401(k) private-sector worker could put away. **Example — Marcus, comparing TSP to his old private-sector 401(k):** Marcus just left a private-sector job with a standard 401(k) and 4% match for a federal position with TSP access. His new elective deferral limit is the same $24,500, but TSP adds an automatic 1% agency contribution he gets regardless of his own deferral, plus a match on his first 5% — richer than the 4% match he had before, even before he contributes a dollar of his own. ## What About IRAs, SIMPLE IRAs, and SEP-IRAs? Everything above covers employer-sponsored plans. IRAs run on a completely separate limit — $7,500 for 2026, plus a $1,100 catch-up if you’re 50+ — and that limit doesn’t interact with your 401(k), 403(b), 457(b), or TSP deferrals at all. You can max out a 401(k) and still fund a full [Traditional or Roth IRA](https://savingtoinvest.com/traditional-ira-versus-roth-ira-contribution-and-phase-out-income-limits/) on top of it, subject to the usual Roth income limits. If you work for a small business instead of a large employer, you may have a [SIMPLE IRA](https://savingtoinvest.com/simple-ira-contribution-and-income-limits-small-business-retirement-plans/) rather than a 401(k) — it runs on its own, lower limit structure. And if you’re self-employed with no employees, a [SEP-IRA](https://savingtoinvest.com/sep-ira-rules-and-contribution-limits/) works on a percentage-of-compensation formula that doesn’t resemble any of the plans above. For the full combined picture across every account type, my [401(k)/IRA/Roth IRA hub](https://savingtoinvest.com/401k-ira-and-roth-ira-contribution-and-income-limits/) ties all of these together in one place. ## Looking Ahead: 2027 Outlook The IRS typically confirms next year’s limits in late October or early November, after the third-quarter inflation data is finalized — expect an announcement around November 1, 2026. Milliman’s latest inflation-based forecast projects the shared $24,500 limit rising to roughly **$25,000** for 401(k), 403(b), TSP, and governmental 457(b) plans alike, since all four are indexed the same way under Section 402(g)-related rules. These are estimates, not official numbers, and they can move if inflation data comes in higher or lower than expected between now and the announcement. I’ll update this page — and the table above — the moment the IRS makes it official. ## Common Issues to Watch Out For I get versions of these questions constantly from readers juggling more than one plan type. **Assuming a 457(b) shares your 401(k)/403(b) limit.** It doesn’t, if it’s governmental. This is the single biggest misunderstanding I see among teachers, nonprofit staff, and government workers with access to both — and it means a lot of people are under-saving relative to what they’re actually allowed to defer. **Confusing a mandatory 401(a) deduction with a voluntary 401(k).** If your paycheck shows a 401(a) contribution you don’t remember electing, that’s almost certainly a mandatory employer plan, not something you can adjust like a 401(k) deferral rate. **Not checking whether a 457(b) is governmental or non-governmental.** The tax treatment looks similar on paper, but the creditor protection is not. If you’re deferring a meaningful amount into a non-governmental “top-hat” 457(b), understand that it’s an unsecured promise from your employer, not money held safely in a trust. **Forgetting the 402(g) limit is per person, not per plan, when you switch jobs.** If you have two 401(k)s or a 401(k) and a 403(b) in the same calendar year from different employers, your new employer’s plan has no way of knowing what you already contributed elsewhere. Track it yourself — the correction process for going over is the same excess-contribution headache regardless of which plan type caused it. **Assuming TSP catch-up needs a separate election.** It doesn’t anymore. TSP’s spillover method automatically routes contributions above the regular limit into catch-up status once you’re eligible, so you don’t need to fill out a second form. Frequently Asked Questions QDo 401(k), 403(b), and TSP plans share the same contribution limit? AYes. All three fall under the same IRS Section 402(g) aggregate limit - $24,500 combined in 2026 - no matter how many of these plans you contribute to across different employers in the same year. QDoes a 457(b) plan share the $24,500 limit with my 401(k) or 403(b)? ANo. Both governmental and non-governmental 457(b) plans have their own separate $24,500 limit that doesn't combine with your 401(k), 403(b), or TSP deferrals. Someone with both a 403(b) and a governmental 457(b) can defer up to $49,000 total in 2026. The difference between governmental and non-governmental 457(b) plans is about creditor protection and distribution rules, not whether the limit is shared. QWhat's the difference between a governmental and non-governmental 457(b) plan? AA governmental 457(b) (state/local government employers) holds contributions in a protected trust, just like a 401(k). A non-governmental 457(b), offered by some tax-exempt organizations to select employees, is legally an unsecured promise to pay - the money remains a general asset of the employer and is at risk if the employer becomes insolvent. QIs TSP the same as a 401(k)? AFunctionally, yes, for federal employees. TSP uses the same $24,500 employee limit and catch-up rules as a 401(k), but adds an automatic 1% agency contribution and a match on the first 5% deferred, plus a 'spillover' method that handles catch-up contributions without a separate election. QIs a 401(a) plan the same as a 401(k)? ANo. A 401(a) is typically a mandatory, employer-set contribution plan common in state and local government, while a 401(k) is a voluntary employee-elected deferral. Some public employers offer both - a mandatory 401(a) base plan plus an optional 401(k) or 457(b) for extra savings. QCan I max out both a 403(b) and a 457(b) in the same year? AYes, if the 457(b) is governmental. Because governmental 457(b) plans don't share the 402(g) aggregate limit with 403(b)s, you can contribute up to the full limit in each separately. QWhere can I find the exact catch-up contribution rules for these plans? ASee my dedicated catch-up contribution guide (linked earlier in this article), which covers the standard and super catch-up amounts, the Roth catch-up mandate for high earners, and the 403(b) 15-year rule in full detail. **Categories:** Taxes and Retirement **Tags:** 401K, 403b, 457b, contribution, IRA, Limits, retirement, taxes --- ### [Understanding Increased Standard Deduction Updates and Impact on Your Paycheck and Tax Refund in 2026 and 2027](https://savingtoinvest.com/larger-paychecks-with-higher-tax-brackets-and-larger-standard-deduction/) **Published:** October 24, 2021 **Author:** Andy **Content:** ### Key Takeaways - The 2026 standard deduction is $16,100 (single/MFS), $32,200 (married filing jointly), and $24,150 (head of household) - final IRS figures from Revenue Procedure 2025-32, not estimates. - OBBB added a temporary enhanced standard deduction on top of ordinary inflation adjustments, in effect through 2028. - Taxpayers 65+ get an additional standard deduction of $2,050 (single/HOH) or $1,650 per person (MFJ/MFS) for 2026, plus a separate OBBB senior bonus of up to $6,000 ($12,000 joint) subject to income phase-outs. - A higher standard deduction acts like an automatic tax cut for most W-2 workers once payroll withholding tables catch up. - Dependents face a capped standard deduction: the greater of $1,350 or their earned income plus $450, up to the regular standard deduction for their filing status. - The IRS will announce official 2027 figures in October or November 2026; current estimates put the 2027 standard deduction around $16,700 for single filers. Per the federal tax code, the IRS is required to adjust dozens of tax-related items for inflation on an annual basis. Given the persistently high levels of inflation reflected in recent [COLA increases]() Increases Significantly Leading to Record Social Security and SSI Benefits Raise – Latest Update and Final Numbers”), the IRS has again finalized meaningful increases to **federal tax bracket ranges and standard deductions**. This was further boosted for 2025 and 2026 by [Trump’s One Big Beautiful Bill (OBBB)](). There was no change to the seven underlying tax rates themselves. Covered in this Article: [Toggle](#) - [Standard Deductions by Filing Status](#Standard_Deductions_by_Filing_Status) - [Senior Citizen Standard Deduction Updates](#Senior_Citizen_Standard_Deduction_Updates) - [Dependent and Additional Standard Deductions](#Dependent_and_Additional_Standard_Deductions) - [Standard Deduction vs Itemized Deductions](#Standard_Deduction_vs_Itemized_Deductions) - [Looking Ahead: 2027](#Looking_Ahead_2027) ### Standard Deductions by Filing Status The **standard deduction** is a flat amount that reduces your taxable income (AGI), which can put you in a lower effective tax bracket. Taxpayers who claim the standard deduction cannot also itemize a broader range of deductions, and vice versa. The latest standard deduction by filing status and tax year is shown below. Roughly 90% of taxpayers claim the standard deduction rather than itemizing. The IRS adjusts these amounts annually for inflation, so expect them to rise again for 2027. [**Get your biggest tax refund, guaranteed. Get started today.**]() Filing Status2026 SD2025 SD2024 SD2023 SDMarried Filing Jointly / Surviving Spouses$32,200$31,500$29,200$27,700Heads of Household$24,150$23,625$21,900$20,800Single / Unmarried Individuals$16,100$15,750$14,600$13,850Married Individuals Filing Separately$16,100$15,750$14,600$13,850 *IRS Standard Deduction by Filing Status — 2026 figures are final, from [IRS Revenue Procedure 2025-32](https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill), released October 9, 2025.* Because the US tax system is progressive, as standard deductions and [tax bracket ranges]() expand, more of your *current* income gets taxed in a lower bracket. The increase in standard deductions is especially helpful to lower- and middle-income taxpayers who often get hit by bracket creep when their income holds flat or rises modestly — which is roughly what’s happening given current wage growth. Because [inflation remains elevated](), any pay raise in real terms can get eaten up quickly by the higher cost of goods and services — which makes the gain from higher tax brackets and a larger standard deduction even more meaningful for household budgets. **[Get the latest money, tax and stimulus news directly in your inbox]()** These changes act like an automatic tax cut for many W-2 workers and should result in larger take-home paychecks once the IRS and payroll providers update [paycheck withholding]() After These Personal and Financial Life Events”) calculations, which results in less money being withheld for taxes. If you get a large raise or bonus, your taxes may still rise overall due to higher gross income — but your existing wages should be taxed somewhat less than before. This adjustment happens automatically for most active employees. But if your life situation changes (marriage, divorce, a new child) or you switch employers, you may want to submit an updated [IRS Form W-4](https://www.irs.gov/forms-pubs/about-form-w-4) to your HR/payroll department so withholding matches your actual situation. ### Senior Citizen Standard Deduction Updates Taxpayers age 65 or older, or who are blind, qualify for an additional standard deduction on top of the regular amount: Additional Standard Deduction (per qualifying condition)20262025Single or Head of Household$2,050$2,000Married Filing Jointly or Separately (per person)$1,650$1,600 If you’re both 65+ and blind, the additional amount doubles. On top of that, OBBB added a **temporary senior bonus deduction**: - Up to **$6,000** ($12,000 for married couples if both spouses qualify) for taxpayers 65 and older, available from 2025 through 2028. - The full bonus phases out above a modified adjusted gross income (MAGI) of $75,000 for single filers and $150,000 for joint filers. For example, a single taxpayer 65 or older claimed a total standard deduction of $17,750 ($15,750 + $2,000) on their 2025 return. For 2026, that combination rises to **$18,150** ($16,100 + $2,050) before even factoring in the OBBB senior bonus, which could add up to $6,000 more for qualifying filers. ### Dependent and Additional Standard Deductions Dependents — individuals with investment income, or who are claimed by another taxpayer — have their standard deduction capped. The limit is the greater of the floor amount or $450 plus the individual’s earned income, up to the regular standard deduction for their filing status. Status2026202520242023Dependent with investment income only$1,350$1,350$1,300$1,250Dependent with earned income$1,350 – $16,100$1,350 – $15,750$1,300 – $14,600$1,250 – $13,850 ### Standard Deduction vs Itemized Deductions The standard deduction level also matters when deciding whether to itemize. For example, you’d need to itemize to [claim a charitable tax deduction above the standard amount](), which only makes sense if your total itemized deductions exceed your standard deduction. You can make this determination when filing your return — most [leading tax software]() walks you through the comparison automatically. ## Looking Ahead: 2027 The IRS won’t announce official 2027 standard deduction and tax bracket figures until October or November 2026. Based on inflation running around 3.5–4% through the first half of 2026, the [full tax bracket breakdown](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/) projects the 2027 standard deduction at roughly $16,700 (single/MFS), $33,400 (MFJ), and $25,000 (HOH) — but these are estimates only until the IRS confirms them. OBBB’s enhanced standard deduction and senior bonus deduction both remain in effect through 2028, so the extra boost on top of ordinary inflation adjustments should continue for at least one more filing season after this one. Frequently Asked Questions QWhat is the 2026 standard deduction? AFor 2026, the standard deduction is $16,100 for single filers and married individuals filing separately, $32,200 for married filing jointly, and $24,150 for head of household. These are final figures from IRS Revenue Procedure 2025-32. QWhy did my paycheck get bigger this year? AHigher standard deductions and adjusted tax bracket thresholds mean less of your income is subject to tax, so payroll withholding tables reflect smaller withholding amounts once employers update their systems - resulting in a bigger take-home paycheck for many W-2 workers. QHow much extra can seniors deduct in 2026? ATaxpayers 65 or older can claim an additional $2,050 (single/HOH) or $1,650 per person (married) on top of the regular standard deduction, plus a separate OBBB bonus deduction of up to $6,000 ($12,000 for married couples) through 2028, subject to income limits. QDo I need to do anything to get the bigger standard deduction? ANo. The IRS and payroll providers apply the updated standard deduction and withholding tables automatically. You only need to submit a new W-4 if your personal situation changed (marriage, new dependent, new job) or you want to fine-tune your withholding. QWhen will the 2027 standard deduction be announced? AThe IRS typically releases the following year's inflation adjustments in October or November. Official 2027 figures are expected in fall 2026, with early estimates suggesting a single filer standard deduction around $16,700. **Categories:** Taxes and Retirement --- ### [Tax Refund Advance Loans in 2026-2027: How Much You Can Get and Why Your Refund May Be Lower Than Expected](https://savingtoinvest.com/are-advance-refund-payments-worth-it-and-how-much-you-can-get/) **Published:** January 17, 2022 **Author:** Andy **Content:** ### Key Takeaways - TurboTax and H&R Block's main refund advance products carry 0% APR and no loan fees, with amounts up to $4,000 (TurboTax DIY/DIWM; up to $10,000 with Full Service) and up to $4,000 at H&R Block, in six tiers starting at $250. - Jackson Hewitt and Liberty Tax's advance products carry real financing costs - Jackson Hewitt's Tax Refund Advance runs a 35.99% APR, and its earlier 'holiday' loan (available before you've even filed) adds a finance charge on top of that. - Loan amounts are based on your expected refund, so anything that shrinks the actual IRS payment - an offset, a math-error adjustment, a smaller-than-expected credit - can shrink your advance or get it denied, and you still owe what you borrowed. - Application windows are short. Most 2026 in-season programs opened around January 2 and cut off between late February and April 15; the December 'holiday' loans run on their own, separate calendar. - Jackson Hewitt's 'No Fee'/0% APR marketing is currently the subject of a class-action complaint alleging the advertised terms understate the real cost to some borrowers - read the loan agreement, not just the ad. - A refund advance is a real loan, not your refund itself. Getting one (or being denied one) has no bearing on your credit score, but you're on the hook to repay it regardless of what the IRS eventually pays you. If you filed with a major tax software provider or storefront preparer in early 2026, you likely saw a prompt offering to get part of your refund in minutes instead of waiting on the IRS. That’s a tax refund advance, and the terms vary a lot more between providers than the marketing suggests. I get asked about these every filing season, usually from people who got a smaller advance than they expected or didn’t realize a separate loan product they’d used months earlier came with real interest charges. Here’s how the 2026 season actually played out across the major providers, and what to watch for when advances reopen for the 2027 season. Covered in this Article: [Toggle](#) - [What Is a Tax Refund Advance Loan?](#What_Is_a_Tax_Refund_Advance_Loan) - [2026 Refund Advance Amounts and Terms by Provider](#2026_Refund_Advance_Amounts_and_Terms_by_Provider) - [Where Can I Get a Tax Refund Advance?](#Where_Can_I_Get_a_Tax_Refund_Advance) - [Why Your Refund Advance May Be Lower Than Expected](#Why_Your_Refund_Advance_May_Be_Lower_Than_Expected) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027 Season Outlook](#Looking_Ahead_2027_Season_Outlook) - [Will My Credit Score Be Impacted?](#Will_My_Credit_Score_Be_Impacted) ## What Is a Tax Refund Advance Loan? A tax refund advance is a short-term loan, underwritten by a bank behind the scenes, that pays you an estimate of your refund right after your e-filed return is accepted — often within minutes to 24 hours, instead of the IRS’s typical 21-day window. You apply for it during the filing process itself, after your return is complete but before it’s transmitted to the IRS. The provider’s software estimates your refund, a partner bank decides how much (if any) to advance, and funds land on a prepaid card or linked account. When your actual refund arrives from the IRS, the loan amount, along with any interest or fees, gets deducted first. Whatever’s left over is yours. ## 2026 Refund Advance Amounts and Terms by Provider Here’s what each of the major providers actually offered during the just-completed 2026 filing season (returns for tax year 2025): ProviderAdvance AmountAPR / FeesAvailability WindowTurboTax Refund AdvanceUp to 50% of refund, max $4,000 (DIY/DIWM); up to 100%, max $10,000 (Full Service)0% APR, $0 loan feesDec 19, 2025 – Feb 28, 2026H&R Block Refund Advance$250, $500, $750, $1,250, $2,500, or $4,0000% APR, no loan feesJan 2 – Mar 15, 2026H&R Block Emerald Advance$350 – $1,500Fixed-rate term loan (separate product; repay by Mar 31, 2026)Available before filing season startsJackson Hewitt Tax Refund Advance$500, $750, $1,000, $1,500, $2,500, $3,50035.99% APRJan 2 – Apr 15, 2026Jackson Hewitt Early Tax Refund AdvanceUp to $1,500 (needs $5,000+ expected refund)35.99% APR plus ~6.51% finance charge and ~2.73% feeDec 11, 2025 – Jan 11, 2026Liberty Tax Easy Advance$500 – $6,250Varies by lender agreementEarly Jan – Feb 28, 2026, in-office filing requiredTaxAct Refund Advance$250, $500, $750, $1,0000% APR, no loan feesThrough Feb 28, 2026 The pattern that jumps out: TurboTax, H&R Block’s main Refund Advance, and TaxAct all offer genuinely free advances at 0% APR with no loan fees. Jackson Hewitt’s products and Liberty Tax’s Easy Advance are structured more like traditional short-term consumer loans, with real APRs attached. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates as 2027 season terms are announced.* ## Where Can I Get a Tax Refund Advance? You generally have to file your full return through the provider offering the advance to qualify — you can’t apply for, say, a TurboTax Refund Advance if you’re filing through H&R Block. Most require e-filing (Liberty Tax currently requires visiting a branch office), and you need an expected federal refund above a minimum threshold, commonly around $500. The 0% APR products are typically funded to a linked account tied to the provider — TurboTax pays out through a Credit Karma Money account, H&R Block through Spruce or an Emerald Prepaid Mastercard, and Jackson Hewitt via a Serve American Express Prepaid Card. ## Why Your Refund Advance May Be Lower Than Expected Your advance is only as large as your *estimated* refund, and a few things regularly cause the actual number to come in smaller than filers expect. The end of pandemic-era credit expansions (like the temporarily larger Child Tax Credit) already reset a lot of refunds lower in recent years compared to 2021. If your income, dependents, or withholding changed since your last filing, your estimate may not match what the IRS ultimately approves. Refund offsets are the other big one. If the IRS is collecting on your behalf for a defaulted student loan, back child support, or another federal or state debt, that amount gets subtracted before you ever see it — and your advance doesn’t get that memo in advance. **Denise** filed through TurboTax in early February 2026 expecting a $3,200 refund. She used the DIY Refund Advance, capped at 50% of her expected refund, and received $1,600 in her Credit Karma account within 15 minutes of the IRS accepting her return — no fees, no interest. **Marcus** took Jackson Hewitt’s Early Tax Refund Advance in mid-December 2025, borrowing $1,200 against an estimated refund before he’d even filed. Between the 35.99% APR and the roughly 6.51% finance charge plus fees, he paid noticeably more for those few extra weeks of early access than he would have waiting for the regular in-season 0% product that opened just three weeks later. ## Common Issues to Watch Out For **“0% APR” doesn’t always mean completely free.** TurboTax and H&R Block still charge separate refund transfer or processing fees on some filing tiers (commonly around $39), deducted from your actual refund — read the full fee disclosure, not just the advance terms. **Holiday loans and in-season advances are different products.** The December/January “early” advances are priced and underwritten differently (and more expensively) than the main in-season advances that open once you’ve actually filed a complete return. If you can wait three or four weeks, the in-season option is usually the cheaper one. **Offsets and adjustments hit your advance too.** Since the loan is sized off your expected refund, anything that reduces your actual IRS payment can leave you owing the difference, not just receiving less advance. **Jackson Hewitt’s marketing is under legal scrutiny.** A pending class-action complaint alleges its “No Fee”/0% APR advertising doesn’t match what some borrowers were actually charged, potentially pushing the effective cost above the Military Lending Act’s 36% cap for active-duty service members and their dependents. I’d read the specific loan agreement you’re signing, not just the in-store poster. **Application windows close well before the tax deadline.** Most in-season advance programs cut off in late February or March, even though you can still e-file through April 15. Waiting too long to file can mean the advance option disappears even though filing itself is still open. ## Looking Ahead: 2027 Season Outlook Refund advances for the 2027 filing season (covering tax year 2026 returns) will likely follow the same rough calendar: holiday-style loans reopening around mid-December 2026, with the main in-season 0% APR products from TurboTax, H&R Block, and TaxAct opening in early January 2027. I’ll be watching whether the loan caps stay at $4,000 for the free products, and whether the Jackson Hewitt class-action affects how “No Fee”/0% APR advances get marketed and disclosed industry-wide next season — a settlement or ruling could push other providers to tighten their own disclosures too. I’ll update this page once providers post their official 2027 terms and application windows. ## Will My Credit Score Be Impacted? No. A refund advance is underwritten based on your expected refund and basic identity/income verification, not a hard credit pull that affects [your score](https://savingtoinvest.com/breaking-down-and-improving-your-fico/ "25% of Americans Have a Credit Score of Less Than 600. Here’s How To Improve Your FICO Credit Score"). It’s still a real loan, though — if your actual refund comes in lower than what you borrowed, you owe the difference regardless of what happens to your credit. **Related reading:** - [Why Is My Tax Refund So Low Compared to Last Year?](https://savingtoinvest.com/why-is-my-tax-refund-so-low-compared-to-prior-years/) - [Why Was Money Taken Out of My Bank Account Before My Tax Refund Was Paid](https://savingtoinvest.com/why-was-money-taken-out-of-my-bank-account-before-tax-refund-was-paid/) - [2026-2027 Best Online Tax Filing Software and Free Filing Options](https://savingtoinvest.com/the-best-tax-software-and-free-filing-options-as-tax-filing-goes-primarily-online/) - [IRS Tax Transcript Code 826 — Debt Offset and Smaller Refund](https://savingtoinvest.com/irs-tax-transcript-code-826-credit-transferred-out-irs-debt-offset-and-what-it-means-for-your-return-and-refund-processing/) Frequently Asked Questions QWhat is a tax refund advance loan? AIt's a short-term loan, funded by a bank behind the scenes, that pays you an estimate of your federal tax refund shortly after your e-filed return is accepted by the IRS - often within minutes to 24 hours rather than the usual 21-day refund wait. QHow much can I get from a 2026-2027 refund advance? AIt depends on the provider. TurboTax and H&R Block's main products go up to $4,000 at 0% APR (TurboTax's Full Service tier up to $10,000). Jackson Hewitt and Liberty Tax offer larger amounts (up to $3,500 and $6,250 respectively) but with real APRs attached. QDo refund advance loans charge interest? ATurboTax, H&R Block's main Refund Advance, and TaxAct's Refund Advance charge 0% APR with no loan fees. Jackson Hewitt's products carry a 35.99% APR, and Liberty Tax's terms vary by lender agreement. QWill taking a refund advance hurt my credit score? ANo. Refund advances don't involve the kind of credit check that affects your score. You're still responsible for repaying the loan if your actual refund comes in lower than expected. QWhy was my refund advance rejected or lower than I expected? AUsually because your actual expected refund (after IRS review) came in below the provider's minimum threshold, or because a federal or state offset - back taxes, child support, defaulted student loans - is expected to reduce your refund. QWhen do refund advance loans become available for the 2027 tax season? ABased on the 2026 pattern, expect holiday-style advances to reopen around mid-December 2026, with the main 0% APR in-season products opening in early January 2027 once e-filing begins. **Categories:** Taxes and Retirement --- ### [IRS CP10 Notice Explained: What It Means When the IRS Corrects Your Estimated Tax Credit](https://savingtoinvest.com/irs-cp10-notice-explained/) **Published:** February 3, 2022 **Author:** Andy **Content:** ### Key Takeaways - A CP10 notice means the IRS corrected a math or calculation error on your filed return, and that correction reduced or eliminated the amount you'd asked to be applied toward next year's estimated tax payments. - A CP10 does not automatically mean you owe money right now - it specifically affects your estimated tax carryforward election, not necessarily your current balance. - CP11 and CP12 are related but different: CP11 means the correction resulted in a balance due, while CP12 means the correction resulted in a refund or larger overpayment than you calculated. - You have 60 days from the notice date to contact the IRS if you disagree with the correction - not 30 days, and not an open-ended window. - There's no official IRS 'Taxpayer Estimate Credit Calculator.' To recalculate your estimated tax payments after a CP10, use Form 1040-ES or the IRS Tax Withholding Estimator. A CP10 notice means the IRS found a math or calculation error on your filed tax return, and that correction changed the amount you’d elected to apply toward next year’s estimated tax payments — usually reducing it. It’s one of a family of IRS math-error notices, and it’s commonly confused with the related CP11 and CP12 notices. Covered in this Article: [Toggle](#) - [What the CP10 Notice Actually Says](#What_the_CP10_Notice_Actually_Says) - [CP10 vs. CP11 vs. CP12: What’s the Actual Difference](#CP10_vs_CP11_vs_CP12_Whats_the_Actual_Difference) - [What to Do If You Received a CP10](#What_to_Do_If_You_Received_a_CP10) - [Why This Happens](#Why_This_Happens) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## What the CP10 Notice Actually Says When you file your return, you can choose to apply some or all of an overpayment toward next year’s estimated taxes instead of receiving it as a refund. If the IRS later catches an error in your return’s math — a miscalculated credit, an incorrectly transferred figure, a transposed number — and that error affects the overpayment amount, the IRS sends a CP10 to notify you of the recalculated amount now available to carry forward. According to the [IRS’s own CP10 notice page](https://www.irs.gov/individuals/understanding-your-cp10-notice), this notice specifically addresses the portion of your return dealing with the estimated tax election — it is not the same as a notice telling you that you owe additional tax right now. ## CP10 vs. CP11 vs. CP12: What’s the Actual Difference These three notices all cover IRS-corrected math errors, but they differ in what the correction results in: NoticeWhat the Correction Results InCP10A reduced or eliminated amount available to apply toward next year’s estimated taxCP11A balance due — you now owe money because of the correctionCP12An increased refund or overpayment — the correction is in your favor If you’re holding a notice and aren’t sure which one you have, the notice number is printed in the upper right corner of the letter, and it always starts with “CP” followed by the number. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) — I’ll keep this page updated if the IRS changes how these notices are issued or processed.* ## What to Do If You Received a CP10 **If you agree with the correction:** No response is required. Update your own records to reflect the corrected amount, and adjust your quarterly estimated tax payments accordingly using [Form 1040-ES](https://www.irs.gov/forms-pubs/about-form-1040-es). If the amount available to carry forward dropped, you may need to increase your remaining quarterly payments to avoid an underpayment penalty. **If you disagree with the correction:** Contact the IRS at the phone number printed on the notice within **60 days** of the notice date. This window matters — IRS math-error corrections carry a specific 60-day statutory period to request an abatement or provide supporting documentation, after which the correction generally stands. **To recalculate your estimated tax payments going forward:** There’s no dedicated “estimated tax credit calculator” on IRS.gov. Use the Form 1040-ES worksheet referenced above, or the [IRS Tax Withholding Estimator](https://www.irs.gov/individuals/tax-withholding-estimator) if you’re an employee trying to true up withholding instead of quarterly payments. ## Why This Happens The most common causes of a CP10-triggering error are transposed digits, a credit calculated using the wrong income figure, or a mismatch between what you reported and what the IRS has on file from employers, banks, and other payers — a process the IRS calls “matching.” If your [AGI or MAGI](https://savingtoinvest.com/agi-vs-magi-explained/) was miscalculated on the original return, that error can cascade into the credits and the estimated tax election tied to it. If you need to double-check the original figures, you can [request a free IRS transcript](https://savingtoinvest.com/getting-a-free-copy-of-your-irs-tax-return-information-form-4506t-irs-tax-transcript/) of the return in question. Life changes — a new job, a dependent, a change in [filing status](https://savingtoinvest.com/how-marriage-changes-your-taxes-and-finances/) — don’t by themselves trigger a CP10. Those affect your *next* year’s estimated tax planning, not a correction to what you already filed. ## Common Issues to Watch Out For **Assuming a CP10 means you owe money immediately.** It doesn’t necessarily. A CP10 only addresses the estimated tax carryforward election — check the specific dollar figures on your notice before assuming there’s a current balance due. **Missing the 60-day dispute window.** Unlike some other IRS correspondence, math-error corrections have a firm 60-day period to request review. Set a reminder as soon as you receive the notice rather than setting it aside — and see [how long to wait after any IRS notice](https://savingtoinvest.com/how-long-do-i-have-to-wait-after-an-irs-notice-to-get-my-tax-refund/) before following up if a related refund or credit seems delayed. **Not adjusting quarterly payments after a reduced carryforward.** If the amount available to apply toward this year’s estimated tax dropped, your first-quarter payment may now be short unless you account for the difference — increasing your remaining payments or paying the shortfall directly avoids a penalty later. **Confusing a CP10 with an audit notice.** A CP10 is an automated math-error correction from return processing, not the start of an IRS audit. If you’re also waiting on a refund and want to check its status separately, the [IRS refund schedule](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) and [contacting the IRS directly](https://savingtoinvest.com/no-tax-refund-after-21-days-tips-on-contacting-the-irs/) are the right next steps, not assuming the CP10 itself is an audit trigger. **Not verifying your AGI when calling the IRS.** If you need to call about the notice, have your Notice Number and the AGI from the return in question ready — the IRS uses these to verify your identity and pull up the specific notice. Frequently Asked Questions QWhat does a CP10 notice mean? AThe IRS found a math or calculation error on your filed return, and the correction reduced or eliminated the amount you'd elected to apply toward next year's estimated tax payments. QDo I owe money if I get a CP10 notice? ANot necessarily. A CP10 specifically addresses your estimated tax carryforward election. Check the exact figures on your notice to see whether it also affects your current balance. QHow long do I have to dispute a CP10 notice? A60 days from the date on the notice. Contact the IRS at the number printed on the notice within that window if you disagree with the correction. QWhat's the difference between CP10, CP11, and CP12 notices? AAll three cover IRS-corrected math errors. CP10 reduces the amount available for next year's estimated tax. CP11 means you now owe a balance. CP12 means the correction increased your refund or overpayment. QIs there an IRS tool to recalculate my estimated tax after a CP10? AThere's no dedicated 'estimated tax credit calculator.' Use the worksheet in Form 1040-ES, or the IRS Tax Withholding Estimator if you want to adjust paycheck withholding instead of quarterly payments. QWhat information do I need before calling the IRS about a CP10 notice? AHave the Notice Number (printed in the upper right corner of the letter) and the AGI from the tax return in question ready - the IRS uses these to verify your identity and locate your file. **Categories:** Taxes and Retirement --- ### [1099-K Rules Are Back to Normal: OBBBA Restores the $20,000 Threshold — What Sellers and Side Hustlers Need to Know for 2026](https://savingtoinvest.com/1099-k-explained-everything-you-need-to-know-about-this-tax-form/) **Published:** April 27, 2022 **Author:** Andy **Content:** ### Key Takeaways - The $600 1099-K threshold is gone for good - OBBBA repealed it retroactively to tax years after December 31, 2021, restoring the $20,000-and-200-transactions threshold that existed for a decade before 2021. - A 1099-K reports gross payment volume, not profit - getting one (or not getting one) has nothing to do with whether your income is actually taxable. - Casual sellers, gig side-hustlers, and anyone splitting bills with friends via Venmo/PayPal generally won't get a 1099-K in 2026 unless they cross both $20,000 in payments and 200 transactions. - A handful of states (Massachusetts, Vermont, and others) set their own lower reporting thresholds, and some platforms issue 1099-Ks voluntarily below the federal threshold - so a form can still show up even under $20,000. - The threshold is now permanent law with no scheduled phase-downs, so the same $20,000/200 rule is expected to apply for 2027 filings too. If you sell on eBay or Etsy, drive for a rideshare app, or get paid through PayPal or Venmo, the 1099-K rules that caused years of confusion are finally settled — and in your favor. Under the One Big Beautiful Bill Act (OBBBA), payment platforms only send you (and the IRS) a Form 1099-K if you receive **more than $20,000** in payments for goods and services **and** have **more than 200 transactions** in the year. Both conditions must be met. That’s the same threshold that existed for a decade before 2021, and the IRS has confirmed it in [updated Form 1099-K guidance](https://www.irs.gov/newsroom/irs-issues-faqs-on-form-1099-k-threshold-under-the-one-big-beautiful-bill-dollar-limit-reverts-to-20000). The $600 rule that was supposed to sweep millions of casual sellers into IRS paperwork is gone for good. Covered in this Article: [Toggle](#) - [What a 1099-K Actually Reports](#What_a_1099-K_Actually_Reports) - [The 1099-K Whiplash: How We Got Here](#The_1099-K_Whiplash_How_We_Got_Here) - [The Rule Everyone Gets Wrong: No Form ≠ No Tax](#The_Rule_Everyone_Gets_Wrong_No_Form_%E2%89%A0_No_Tax) - [What Doesn’t Count: Personal Payments](#What_Doesnt_Count_Personal_Payments) - [Why You Might Still Get a 1099-K Below $20,000](#Why_You_Might_Still_Get_a_1099-K_Below_20000) - [Why the $600 Number Keeps Showing Up in Headlines](#Why_the_600_Number_Keeps_Showing_Up_in_Headlines) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [What to Do If You Get a 1099-K You Weren’t Expecting](#What_to_Do_If_You_Get_a_1099-K_You_Werent_Expecting) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) ## What a 1099-K Actually Reports Before the history, it’s worth being clear on what this form does and doesn’t tell the IRS. A 1099-K reports **gross payment volume** you received through a third-party settlement organization — PayPal, Venmo, Cash App (for business payments), Etsy, eBay, Airbnb, or a credit card processor. It’s issued by the platform, not by whoever paid you, and it does not net out your costs. If you sold $25,000 worth of handmade goods on Etsy and your materials cost $18,000, the 1099-K shows $25,000 — it’s on you to report the actual $7,000 profit correctly on your return. A big number on the form doesn’t mean you owe tax on all of it. ## The 1099-K Whiplash: How We Got Here Here’s the short version of a mess of delays and reversals that’s played out since 2022: Tax YearThreshold That Was ScheduledWhat Actually AppliedThrough 2021$20,000 + 200 transactions$20,000 + 200 transactions2022–2023$600 (ARPA law)$20,000 + 200 (IRS delayed the change)2024$5,000 (IRS phase-in)$20,000 + 200 (OBBBA, retroactive)2025$2,500 (IRS phase-in)$20,000 + 200 (OBBBA)2026 and beyond$600$20,000 + 200 — permanent The American Rescue Plan Act of 2021 dropped the threshold to $600 with no transaction minimum. The IRS delayed it twice, then tried a phase-in. OBBBA ended the whiplash by repealing the lower threshold retroactively — for tax years after December 31, 2021, the $20,000/200 rule applies as if the $600 rule never existed. One practical note from the IRS: platforms that already issued 1099-Ks under the lower thresholds don’t have to amend or withdraw them, and platforms that didn’t issue them won’t be penalized. If you received a 1099-K for a prior year under the old rules, it’s still valid — report accordingly. ## The Rule Everyone Gets Wrong: No Form ≠ No Tax This is the single biggest misconception. The 1099-K threshold controls when a *platform reports your payments* — it has nothing to do with whether your income is taxable. If you make a profit selling goods or providing services, that income is taxable from the first dollar, form or no form. The higher threshold just means the IRS isn’t automatically getting a copy — your legal obligation to report income on your return is unchanged. **Sarah** sells vintage clothes on eBay as a side hustle — $3,200 across 45 sales in 2026. Under the old $600 rule she’d have gotten a 1099-K; now she won’t. But her profit (sale price minus what she paid for the items and selling costs) is still taxable income she needs to report. **Mark** drives for a delivery app and processed $28,500 across 600 transactions. He clears both parts of the threshold, so he’ll get a 1099-K — same as he would have under any version of the rules. For gig workers at this level, nothing changes. ## What Doesn’t Count: Personal Payments Money from friends and family was never supposed to trigger a 1099-K, and that hasn’t changed. Splitting a dinner bill, getting rent from a roommate, or receiving birthday money on Venmo isn’t taxable income. Practical tip: keep personal and business payments on separate accounts, and make sure friends tag payments as personal rather than “goods and services.” Mislabeled payments are the most common reason people get a 1099-K they shouldn’t have. ## Why You Might Still Get a 1099-K Below $20,000 Two reasons a form can still show up: **State rules.** A handful of states set their own lower reporting thresholds — Massachusetts and Vermont have used a $600 threshold for years, and several other states have their own limits. Platforms follow the state rule for residents of those states. **Platform choice.** Payment companies are allowed to issue 1099-Ks below the federal threshold, and some do to standardize their reporting. If you get one, don’t ignore it — the IRS gets a copy of whatever is issued. Report the income (or note the personal/loss nature of the transactions) so your return matches what’s on file. If the form is simply wrong, request a corrected form from the platform. ## Why the $600 Number Keeps Showing Up in Headlines A lot of outdated articles and social posts still reference the $600 threshold because it was technically law for a few years before being repealed. If you see a headline warning about a “new $600 rule,” check the date — it’s likely recycled old content. There’s also a genuinely different form causing confusion: **Form 1099-NEC/1099-MISC**, which businesses use to report payments *to contractors and vendors*, had its own separate threshold raised from $600 to $2,000 starting in 2026. That’s a completely different reporting requirement covering business-to-contractor payments, not peer-to-peer app payments — but the shared “$600” number in older coverage of both changes makes them easy to conflate. ## Common Issues to Watch Out For **Selling personal items at a loss isn’t taxable — but handle the form right.** Sold your old couch or used electronics for less than you paid? That’s not taxable income. If you get a 1099-K for it anyway, the IRS allows you to report and back out the amount on your return (Schedule 1, line 24z, with a matching negative entry) rather than ignoring it. **Double reporting with a 1099-NEC.** If a client pays you through a platform *and* sends you a 1099-NEC, the same income can show up twice. You only report it once — but keep records showing the overlap in case the IRS asks. **Mixed personal and business accounts.** One Venmo account for both freelance payments and splitting utilities is asking for trouble. Separate them now, before next January’s forms go out. **Landlords collecting rent via payment apps.** If you collect rent through Venmo or Zelle and cross the $20,000/200-transaction threshold, expect a 1099-K — but you should already be reporting rental income on Schedule E regardless of whether a form arrives. **Assuming no form means the IRS can’t see you.** Underreporting because “there’s no paper trail” is a bad bet — banks, platforms, and payment processors still keep records the IRS can request, and unreported income remains the legal risk it always was. ## What to Do If You Get a 1099-K You Weren’t Expecting 1. **Don’t panic or ignore it** — the IRS gets a copy too, and unexplained 1099-K income is a common audit-flag trigger. 2. **Figure out what it represents:** genuine income, reimbursements, or personal-item sales at a loss. 3. **Report accordingly:** genuine profit goes on Schedule C or as other income; non-taxable personal-item sales get backed out using the IRS’s designated method. 4. **Keep your own records** — screenshots of transactions, receipts for what you originally paid for resold items, and platform statements — so you can substantiate your numbers if questioned. ## Looking Ahead: 2027 Outlook Unlike the last four years, there’s nothing scheduled to change. The $20,000/200 threshold is permanent law with no phase-downs or sunsets attached, so the same rule is expected to apply for 2027 filings. The thing worth watching is at the state level — states have been more active in setting their own lower thresholds, and more could follow Massachusetts and Vermont. This page will be updated if the IRS issues new guidance or state rules shift. If you’re earning side income that isn’t taxed as you go, also check whether you need to make [quarterly estimated tax payments](https://savingtoinvest.com/quarterly-estimated-taxes-this-year-what-freelancers-actually-need-to-know/) — the 1099-K threshold doesn’t change when tax is actually due. And when you file, see the current [IRS tax brackets](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/) and the [refund schedule](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) to see when a refund would arrive. *[Subscribe here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get notified if 1099-K rules or state thresholds change.* Frequently Asked Questions QWhat is the 1099-K threshold for 2026? AMore than $20,000 in gross payments AND more than 200 transactions in the year. Both conditions must be met before a payment platform is required to send you and the IRS a Form 1099-K. OBBBA made this threshold permanent. QIs the $600 1099-K rule still happening? ANo. The One Big Beautiful Bill Act repealed the $600 threshold retroactively - for tax years after December 31, 2021, the $20,000/200-transaction threshold applies as if the $600 rule never existed. QDo I owe taxes if I don't get a 1099-K? AYes, if the income is taxable. The threshold only controls when platforms report payments to the IRS. Profit from selling goods or providing services is taxable from the first dollar whether or not you receive a form. QAre Venmo payments from friends and family taxable? ANo. Personal payments - splitting bills, gifts, roommate rent-sharing - are not taxable income and shouldn't generate a 1099-K. Make sure friends tag payments as personal rather than goods and services to avoid mislabeled forms. QWhy did I get a 1099-K even though I'm under $20,000? ASome states (like Massachusetts and Vermont) require reporting at lower thresholds, and platforms may issue forms voluntarily below the federal threshold. Don't ignore the form - the IRS gets a copy, so report the income or properly back out non-taxable amounts. QI sold personal items at a loss and got a 1099-K. Do I owe tax? ANo - selling personal items for less than you paid isn't taxable income. But don't ignore the form; report the amount and back it out on your return (Schedule 1, line 24z) so your filing matches IRS records. QIs the 1099-NEC/1099-MISC threshold the same as the 1099-K threshold? ANo, they're different forms. Starting in 2026, the threshold for 1099-NEC/1099-MISC (used to report payments to contractors and vendors) rose from $600 to $2,000, separate from the $20,000/200-transaction 1099-K threshold for payment apps and marketplaces. The shared '$600' number in old headlines is what causes the confusion. **Categories:** Taxes and Retirement **Tags:** 1099K, IRS, tax --- ### [2026-2027 IRS Tax Refund Schedule And Direct Deposit Payment Calendar](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) **Published:** January 24, 2015 **Author:** Andy **Content:** ### Key Takeaways - 2026 to 2027 IRS tax refund schedule and direct deposit payment dates - See when your refund will be paid by the IRS based on return accepted date - See common issues around and reasons why your refund is late (and what to do) - Discussion of PATH Act and Tax Topic 152 - If your tax prep fees were deducted from your refund, expect an extra 1-2 business days after your IRS deposit date - a third-party processor (commonly SBTPG/TPG), not the IRS, handles that step Tax return processing and refund payments continue to be bumpy this year given IRS budget cuts and introduction of several tax changes under Trump’s One Big Beautiful Bill ([OBBB](https://savingtoinvest.com/reconciling-trumps-big-beautiful-bill-bbb/)). The IRS started the 2026 season roughly 2 million returns behind on backlog, and a February 2026 Treasury Inspector General report found IRS staffing down about 27% year-over-year — both mean more manual-review delays than usual for anyone outside the standard 21-day window. With over 160 million returns expected to be filed this tax season, many tax filers can expect processing delays beyond the standard guidelines shown below. The good news is refunds are expected to be [larger](https://savingtoinvest.com/massive-refund-increases-for-american-workers/). Covered in this Article: [Toggle](#) - [When Can I Expect My Tax Refund?](#When_Can_I_Expect_My_Tax_Refund) - [Average IRS Refund](#Average_IRS_Refund) - [Why Your Refund Payment Could be Delayed](#Why_Your_Refund_Payment_Could_be_Delayed) - [IRS Test Batches – Early Refunds](#IRS_Test_Batches_%E2%80%93_Early_Refunds) - [When Should Taxpayers contact the IRS?](#When_Should_Taxpayers_contact_the_IRS) - [Help! My WMR status bar has disappeared](#Help_My_WMR_status_bar_has_disappeared) - [PATH Act and Tax Topic 152](#PATH_Act_and_Tax_Topic_152) - [What is the IRS Cycle Code on my Transcript?](#What_is_the_IRS_Cycle_Code_on_my_Transcript) - [IRS system issues and refund delays](#IRS_system_issues_and_refund_delays) - [Looking Ahead: The 2027 Filing Season](#Looking_Ahead_The_2027_Filing_Season) - [Amended Tax Return Refund Schedule](#Amended_Tax_Return_Refund_Schedule) ### When Can I Expect My Tax Refund? According to the IRS refunds will generally be paid within 21 days. This includes accepting, processing and disbursing approved refund payments via direct deposit or check. This is regular days, not business days. This was the basis for the **estimated IRS refund schedule/calendar** shown below, which has been updated to reflect the [start date](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/ "official start") of IRS tax return processing this year. The refund processing schedule is organized by IRS’ WMR/IRS2Go [processing status](https://savingtoinvest.com/wmr-and-irs2go-status-differences-return-received-accepted-or-under-review-and-refund-approved-versus-refund-sent/)‘. The listed dates are just *week ending* estimates and your refund could be paid anytime during the week based on your IRS cycle code (see more on that in sections below). Further, as many tax filers have found out over the last few years, actual refund payment dates [could be much longer](https://savingtoinvest.com/no-tax-refund-after-21-days-tips-on-contacting-the-irs/) if your return is pulled for mandated PATH, additional identity [fraud/security](https://savingtoinvest.com/i-filed-my-tax-return-it-was-accepted-yet-i-still-havent-seen-any-sign-of-my-refund-irs-identity-review-and-validation-the-likely-reason/ "IRS Identity Review and Validation Options – Phone and Online – to Reduce Refund Payment Delays") checks, special handling or manual agency reviews. **[Get the latest money, tax and stimulus news directly in your inbox](/subscribe "Subscribe via Email")** \[table id=143 /\] The estimated IRS refund payment dates in the chart above should *not be* construed as official IRS payment dates. To get the exact date of your refund payment check the IRS’ Where is My Refund ([WMR](https://savingtoinvest.com/wmr-and-irs2go-status-differences-return-received-accepted-or-under-review-and-refund-approved-versus-refund-sent/ "WMR and IRS2Go Status Differences – Return Received, Accepted or Under Review and Refund Approved versus Refund Sent – News and Updates for 2021 Tax Filings")) site or your [IRS transcript](https://savingtoinvest.com/using-your-irs-transcript-to-get-your-tax-return-and-refund-processing-status-and-key-dates/ "What Your IRS Transcript Can Tell You About Your 2022 IRS Tax Return Processing, Refund Status and Payment Adjustments"). #### How to read the IRS refund processing schedule The estimated **refund payment dates** in the table above are based on past years and IRS processing guidelines. It shows the date your refund will be processed and paid based on the week your return is accepted **and** refund is approved by the IRS. The federal IRS **refund processing schedule** is only for electronically filed returns (e-file) done thorough online [tax software](/taxes "Filing Your Taxes For Free – Online IRS Free File Options From TurboTax, HR Block and CompleteTax") providers and assumes your tax return was in order. I.e accepted by the IRS via the WMR tool and status is equal to *“Return Received”*. Once your tax return is successfully processed by the IRS, it will go to the *“Refund Approved”* status, after which it goes to refund sent when the payment is disbursed by the IRS. **Paper filed returns** can take considerably longer and could take 1 to 2 weeks longer than the direct deposit payment dates. ### Average IRS Refund Based on the [latest statistics](https://savingtoinvest.com/extended-tax-refund-delays-and-expected-irs-processing-schedule-for-returns-with-exceptions/) from the latest tax year the IRS processed over 160 million returns with the [average](https://savingtoinvest.com/average-irs-and-state-tax-refund-and-processing-times/ "Average Federal and State Tax Refund Processing Times") refund payment of $3,462 through Tax Day 2026 — about 11% higher than the same point in 2025, largely driven by the new OBBBA tax cuts. ### Why Your Refund Payment Could be Delayed There are many reasons your tax return processing could be delayed beyond what is shown in the standard schedule above. This includes submission errors, IRS reconciliation issues or security/fraud related issues. This is why many filers are see the “[Return Processing Has Been Delayed Beyond The Normal Timeframe (Tax Topic 152)](https://savingtoinvest.com/refund-status-return-processing-has-been-delayed-beyond-the-normal-timeframe/)” message during tax season. Note that as in previous years, if you claimed the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit ([ACTC)](https://savingtoinvest.com/3600-expanded-child-tax-credit-on-top-of-1400-dependent-stimulus-check-for-5k-in-2021-biden-stimulus-package/ "ACTC)") your refund may have been delayed beyond the standard processing times due to the [PATH act](https://savingtoinvest.com/tax-refund-payment-delays-likely-according-to-the-irs/) provisions. This is to allow for fraud and dependent verification on these dependent related tax credits. See sections below for more on the PATH act and refund release timeline. For those experiencing ongoing issues or delays with their refunds check out this article on “[Why is it taking so long to get my refund](https://savingtoinvest.com/why-is-it-taking-so-long-to-get-my-tax-refund/).” **One delay that has nothing to do with the IRS:** if you had your tax prep fees deducted from your refund — a common option in TurboTax, H&R Block, and similar software — your refund doesn’t go straight from the IRS to your bank account. It routes through an intermediary bank, most commonly [Santa Barbara Tax Products Group (SBTPG/TPG)](https://taxpayer.sbtpg.com/), which deducts the prep fee and forwards the rest to you. That extra hop typically adds 1–2 business days on top of your IRS deposit date. If your tax software shows your refund as “funded” or “sent” but nothing has hit your bank account yet, that status means the processor received the money from the IRS — not that it’s landed in your account. Check your transfer status directly at the processor’s own site (taxpayer.sbtpg.com for SBTPG) before assuming something is wrong with your IRS refund itself. ### IRS Test Batches – Early Refunds A week or two prior to the IRS officially accepting and processing tax returns, they will often run several test batches with various major tax software providers to “test” and “verify” their systems are integrating externally and processing returns correctly. This will result in WMR status updates for a small subset of tax payers picked in these early test batches, but refunds won’t be paid until after the official IRS processing date. Note that early refunds paid as a result of test batch processing are not the same as those via [refund advance loans.](https://savingtoinvest.com/are-advance-refund-payments-worth-it-and-how-much-you-can-get/ "Can I Get My 2023 Refund Early Via a Cash Advance or Holiday Tax Loan?") ### When Should Taxpayers contact the IRS? The IRS has said that phone and walk-in representatives can only research the status of your refund if it has been **21 days or more** since you filed electronically, or more than 6 weeks since you mailed your paper return or if the IRS WMR tool directs you to contact them. You can also see earlier updates from prior tax seasons and the thousands of comments below this article around dealing with delayed tax refund processing issues! So stay tuned and [subscribe](https://savingtoinvest.com/subscribe) to get the latest updates and helpful articles for the upcoming tax season. I also post regular [Youtube video updates ](https://youtu.be/3Q8wGVI0Uz4)on tax related topics. ### Help! My WMR status bar has disappeared As many folks have commented, the **WMR tracker [status bar](https://savingtoinvest.com/wmr-and-irs2go-status-differences-return-received-accepted-or-under-review-and-refund-approved-versus-refund-sent/)** may disappear or not be shown if your return falls under **IRS review** after it is received (*Status Bar 1: Return Received*) because additional information is needed for your return. This can happen even if you previously checked WMR and it showed the status as “Return Received.” An explanation or instructions will be provided depending on the situation (e.g. PATH message or Tax Topic 152 as discussed below) But don’t panic when this happens. The IRS still has your return but things are essentially on hold until the IRS gets the additional information from you to continue processing your return . You will either get directions on WMR or IRS2Go or the IRS will contact you by mail. See more in [this video](https://youtu.be/0s-Pupf1aiE). Follow the provided instructions and return any additional information ASAP to get your potential refund and reduce any further delays. Talk to your accountant, [tax advocate](https://savingtoinvest.com/contact-a-tax-advocate-to-help-get-your-refund-released-from-the-irs/ "Contact a Tax Advocate to Help Get Your Refund Released From The IRS") or tax professional if you are not clear on what the IRS is asking for or you don’t get an update after 21 days. ### PATH Act and Tax Topic 152 Two of the most common [refund related messages](https://savingtoinvest.com/irs-tax-topic-error-codes-on-where-is-my-refund-wmr-and-irs2go/ "refund related messages") showing up on the WMR tool after your tax return is submitted are the PATH message and a reference to Tax Topic 152 The [PATH message on WMR/IRS2Go](https://savingtoinvest.com/tax-refund-payment-delays-likely-according-to-the-irs "PATH message on the WMR or IRS2Go app") relates to the the Protecting Americans from Tax Hikes Act (PATH Act of 2015) and is to notify you that the IRS is legally required to hold and further verify tax returns that include EITC or ACTC. While the IRS can continue to process affected returns, they cannot issue refund payments until the PATH act lifts. This generally happens from mid-February. See more in this article on [PATH act processing](https://savingtoinvest.com/processing-dates-to-get-my-refund-payment-dates/ "PATH act processing ") for the current tax season. ![Path ACT Refund](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2022/02/PAth-act.jpg?resize=680%2C821&ssl=1)PATH Refund Delays The PATH message **does not mean** your tax return is done and your tax refund is approved. It simply means the IRS systems have identified you are claiming the (EITC) or the (ACTC) on your tax return, and so further processing and payments related to your refund are held up for the statutory hold period (3 weeks after the start of tax season). Once the PATH restriction is lifted, the IRS will process these returns and pay refunds per the above schedule. You may see [Tax code 570](https://savingtoinvest.com/what-is-tax-code-tc-570-on-my-irs-transcript-and-will-it-delay-my-refund-account-freeze-or-additional-account-actions-pending/ "What is Tax Code 570 on my IRS transcript and Will it Delay My Refund Payment? 971 Notice, Account Freeze or Additional account Actions (571) Pending") with a Notice 971 code (IRS review adjustment) if your refund is adjusted for other reasons. When you see the ***“[Refer to Tax Topic 152](https://savingtoinvest.com/what-does-irs-tax-topic-code-152-mean-for-my-refund-payment/ "Refer to Tax Topic 152")“*** message it means your refund is being processed and the IRS is directing you its generic refund page for more information. There is not much you can do but wait to see if the IRS finds any issues or requires further verification of your identity or items in your tax return. A **Tax Topic 151** message simply means that you’re getting a [tax offset](https://savingtoinvest.com/why-is-my-tax-refund-so-low-compared-to-prior-years/ "tax offset") which may result in your refund being less than you expected. The reason for this is that the federal government has “offset” or deducted monies from your tax refund to cover debts you owe other federal agencies. See this article to get more details on [why your refund was offset](https://savingtoinvest.com/irs-refund-adjustments-and-treasury-bfs-offsets-tax-topic-codes-203-598-or-898/ "why your refund was offset"). You will get an official notice letter/report explaining the actual offset and adjustments to your tax return, and details on how to appeal this action – but likely it will delay you getting your refund. While not great news, the silver lining here is that the IRS has processed your return and your adjusted refund (where applicable) should be on its way. You will see [code 846](https://savingtoinvest.com/code-846-refund-issued-on-your-irs-tax-transcript-what-it-means-for-your-direct-deposit-or-paper-check-refund-payment/ "Code 846 Refund Issued on Your IRS Tax Transcript – What It Means For Your Direct Deposit Payment Date and Reversal codes (841, 898)") on your transcript when the refund has been issued. ### What is the IRS Cycle Code on my Transcript? While the above IRS refund schedule can give you an estimated date for you refund once approved (WMR/IRS2Go status) by the IRS, it may take a while to get there. So some folks use their [IRS tax transcript](https://savingtoinvest.com/getting-a-free-copy-of-your-irs-tax-return-information-form-4506t-irs-tax-transcript/ "Getting Your Free IRS Transcript for your Tax Return or refund Processing Information (Form 4506T IRS Tax Transcript)") (free from your IRS account) which shows various tax processing codes and a “cycle code.” This is an eight digit number that indicates when your tax return posted to the IRS Master File (IMF). The cycle code is updated regularly and when combined with the [tax topic code](https://savingtoinvest.com/irs-tax-topic-error-codes-on-where-is-my-refund-wmr-and-irs2go/), can provide insight into your tax refund status, processing stages and potential direct deposit date. You can see a [deeper discussion on IRS cycle codes in this article](https://savingtoinvest.com/irs-refund-cycle-code-and-dates-using-tax-transcript-to-get-master-file-information-for-your-direct-deposit-date/ "deeper discussion in this article"). ![](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2022/02/image-2.png?resize=820%2C258&ssl=1)IRS Tax Transcript Cycle Code #### If I can see current year processing details on my IRS tax transcript does it mean I am getting my refund soon? This question comes up a lot and I have seen a few comments on this suggesting that that if you can see [current tax season processing details](https://savingtoinvest.com/using-your-irs-transcript-to-get-your-tax-return-and-refund-processing-status-and-key-dates/ "Does a tax transcript show when you will get your refund? What Your IRS Transcript Can Tell You About Your 2022 IRS Tax Return Processing, Refund Status and Payment Adjustments") on your (free) transcript then your refund is on the way. But this is not a factual statement. The IRS is very clear that just being able to see [processing details](https://savingtoinvest.com/processing-dates-to-get-my-refund-payment-dates/ "Processing Date and Transcript Cycle Codes For 2023 Refund Payment Direct Deposit With PATH lifted") on your IRS transcript does not mean you will imminently be getting a refund and is among the common myths and misconceptions repeated in social media. For the current tax season you transcript will update several times in line with your cycle code (discussed above) and IRS processing. The official IRS line is that checking the WMR or IRS2Go tool is the best and official way to check your refund status. However I have read a number of comments here and on other tax sites saying that when WMR/IRS2Go provides limited information on the refund, your IRS transcript can be a good source to get more details. The is especially the case if your [refund processing has been stuck](https://savingtoinvest.com/2022-refund-payments-and-processing-for-2021-tax-returns-likely-to-face-long-delays/ "2022 Refund Payments and Processing For 2021 Tax Returns Likely To Face Long Delays – Current Tax Season Updates and News") for a while. ### IRS system issues and refund delays Every year the IRS has [issues with processing returns](https://savingtoinvest.com/2022-refund-payments-and-processing-for-2021-tax-returns-likely-to-face-long-delays "issues with processing returns") in a timely manner and so a number of people see delays in getting their refunds or updates in the status of their refund on the WMR tool/app. The IRS has said most system processing issues have **now been resolved** and new funding will be used to upgrade systems. But given the various legacy systems in place and sheer volume of processing to be done, including prior season backlogs of paper and amended returns, I would not be surprised to see system issues arise again this year, which mean more delays in processing and paying refunds. See [more around processing delays in this video](https://youtu.be/WT7fH_52ohs). See these articles for [average refund amounts](https://savingtoinvest.com/average-irs-and-state-tax-refund-and-processing-times-for-2015-returns-filed-in-2016/) in past tax seasons and refund [processing times by state](https://savingtoinvest.com/when-can-i-file-and-check-my-state-tax-refund/) ### Looking Ahead: The 2027 Filing Season The IRS has not yet announced an official start date for the 2027 filing season (covering tax year 2026 returns) — that announcement typically comes in late December or early January. Based on the last several years, including the January 26, 2026 opening for this season, expect the IRS to open e-filing in the last week of January 2027, with the April 15, 2027 deadline unchanged. We’ll update this page with the confirmed date and a new weekly refund schedule as soon as the IRS makes it official. ### Amended Tax Return Refund Schedule While the IRS promises to have regular return refunds processed within 21 days for nine out of ten tax payers, it does take quite a bit longer to receive a refund if you [amended your tax return](https://savingtoinvest.com/amended-tax-return-refund-schedule-rules-form-1040x-and-deadlines/). Generally you will have to wait **up to 16 weeks more** for the IRS to process amended returns since they prioritize regular returns. Also note that the standard”Where’s my refund” service from the IRS does not track amended tax return status’. You need to instead use the IRS tool, “[Where’s My Amended Return](https://savingtoinvest.com/wheres-my-amended-tax-return-and-when-will-i-get-my-refund/ "Where is My Amended Tax Return and When Will I get My Refund? 2022-2023 Payment Status and Ongoing Delays").” You can also access the tool via phone by calling 1-866-464-2050. Only call the IRS to follow up on delayed amended return refunds after 12 weeks. The number to call is 1-800-829-1040. Frequently Asked Questions QHow long does it take to get a tax refund in 2026? AThe IRS issues most refunds within 21 calendar days of accepting your return - not business days. The fastest way to receive your refund is to e-file your return and choose direct deposit. Paper returns take 4 to 8 weeks. If your return requires additional review or you claimed the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC), your refund may take longer. QWhen will I get my 2026 tax refund if I filed electronically? AIf you e-filed and selected direct deposit, you can generally expect your refund within 10 to 21 days of the IRS accepting your return. The IRS began accepting 2026 returns on January 26, 2026. Filers who submitted on or around that date can expect deposits around February 13 to February 16, assuming no issues with their return. QWhat is the PATH Act and how does it affect my refund? AThe Protecting Americans from Tax Hikes (PATH) Act requires the IRS to hold refunds for filers claiming the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) until at least mid-February. In 2026, the IRS confirmed it will lift the PATH Act hold and begin updating refund statuses on WMR and IRS2Go by February 21, 2026. Most PATH-held refunds will be deposited by March 2, 2026 for those who chose direct deposit with no other issues on their return. QHow do I check my IRS refund status? AThe best way is to use the IRS 'Where's My Refund?' (WMR) tool at irs.gov/refunds or the IRS2Go mobile app. WMR updates once daily, usually overnight. You can check your status 24 hours after e-filing or 4 weeks after mailing a paper return. You will need your Social Security number, filing status, and exact refund amount to look up your status. You can also call the IRS refund hotline at 1-800-829-1954, though wait times are typically long during tax season. QWhat does Tax Topic 152 mean? ATax Topic 152 is a generic IRS reference code that simply means your refund is being processed and may take longer than 21 days. It is not a red flag or audit indicator - it appears on WMR for many standard returns and usually resolves on its own. It does not mean anything is wrong with your return. QWhat is an IRS cycle code and what does it mean? AAn IRS cycle code is an 8-digit number that appears on your tax transcript and indicates when your return posted to the IRS Master File. The first 4 digits are the tax year, the next 2 are the week of the year, and the last 2 digits indicate the day of the week your return was processed (01=Monday through 05=Friday). Combined with transaction codes on your transcript, your cycle code can give you a more precise estimate of your direct deposit date than WMR alone. QWhy is my refund taking longer than 21 days? ASeveral factors can delay a refund beyond 21 days: filing a paper return instead of e-filing, claiming the EITC or ACTC (PATH Act hold), errors or incomplete information on your return, identity verification requirements, an offset to pay a federal or state debt, or your return being selected for additional review. If it has been more than 21 days since e-filing or 6 weeks since mailing a paper return, you can call the IRS at 1-800-829-1040. QWill I still receive a paper check refund in 2026? AIn most cases no. Under Executive Order 14247, the IRS phased out paper refund checks effective September 30, 2025. For the 2026 tax season, the vast majority of filers must provide bank routing and account numbers to receive their refund via direct deposit. Limited exceptions exist for taxpayers without access to banking services. If your direct deposit is rejected by your bank, the IRS will freeze the refund and send a CP53E notice - you then have 30 days to provide updated bank details or the IRS will issue a paper check after 6 weeks. QCan I use my IRS transcript to find my refund date? AYour transcript can provide more detail than WMR in some cases, but the IRS is clear that seeing processing details on your transcript does not guarantee your refund is imminent. Code 846 (Refund Issued) on your transcript with a current or future date is the best indicator that your refund has been approved and a deposit date is set. The official IRS guidance is to use WMR or IRS2Go as your primary refund status tool. QWhat is the difference between my refund being accepted versus approved? AAccepted means the IRS has received your return and it has passed initial checks - this happens quickly, often within 24 hours of e-filing. Approved means the IRS has finished processing your return, verified your information, and confirmed the refund amount. Your deposit is scheduled only after your return is approved. WMR will show 'Return Received,' then 'Refund Approved,' then 'Refund Sent' as your return moves through these stages. QMy tax software says my refund was “funded” or “sent,” but it's not in my bank account yet — what's going on? AIf you had your tax prep fees deducted from your refund, your money is routed through an intermediary bank — most commonly Santa Barbara Tax Products Group (SBTPG/TPG) — that deducts the fees and forwards the rest to you. That adds roughly 1-2 business days on top of the IRS's own deposit date. “Funded” means the processor received the money from the IRS, not that it has landed in your account yet. Check your transfer status directly at the processor's own site (taxpayer.sbtpg.com) rather than assuming your refund is lost. **Categories:** Taxes and Retirement **Tags:** direct deposit, IRS, processing, refund, refund calendar, tax refund, tax refund calendar, tax refund date, Tax Refunds, taxes --- ### [When Can I File My Taxes in 2027? Key IRS Tax Dates, Deadlines, and Refund Payment Timelines](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) **Published:** December 1, 2023 **Author:** Andy **Content:** ### Key Takeaways - The 2026 tax season opened January 26, 2026 for 2025 returns. The April 15, 2026 deadline and October 15, 2026 extension deadline have both passed. - For 2027: the IRS typically opens filing in late January - estimate ~January 25-27, 2027 based on recent patterns. - The standard federal filing deadline for 2026 income returns is April 15, 2027 (Wednesday - no weekend shift). - Extension deadline: October 15, 2027. An extension to file is NOT an extension to pay - taxes owed are still due April 15. - The average 2026 federal refund was $3,676 (mid-season) - up over 10% from 2025, driven by OBBBA tip and overtime deductions. Expect smaller refunds in 2027 as withholding tables have been corrected. - The One Big Beautiful Bill (OBBB) made no changes to filing deadlines or refund timing. The 2026 tax season is officially in the books — the IRS began accepting 2025 returns on January 26, 2026, and the April 15 filing deadline has passed. If you filed on time (or on extension), you’re done until next year. We now look ahead to the **2027 tax season** for 2026 income returns, with estimated dates based on IRS historical patterns. I’ll update these with confirmed figures once the IRS announces officially — typically in early January 2027. Covered in this Article: [Toggle](#) - [2026 Tax Season — Key Dates for Reference](#2026_Tax_Season_%E2%80%94_Key_Dates_for_Reference) - [2027 Tax Season — Estimated Dates for 2026 Filings](#2027_Tax_Season_%E2%80%94_Estimated_Dates_for_2026_Filings) - [When Does the IRS Start Accepting Returns?](#When_Does_the_IRS_Start_Accepting_Returns) - [Refund Timeline: How Long Does It Take?](#Refund_Timeline_How_Long_Does_It_Take) - [What Is the Average Tax Refund?](#What_Is_the_Average_Tax_Refund) - [Key Deadlines to Understand](#Key_Deadlines_to_Understand) - [The April 15 Deadline](#The_April_15_Deadline) - [Filing an Extension](#Filing_an_Extension) - [Estimated Tax Payments](#Estimated_Tax_Payments) - [IRA Contribution Deadline](#IRA_Contribution_Deadline) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## 2026 Tax Season — Key Dates for Reference The 2026 season covered 2025 income tax returns. I’m keeping this table for context — useful if you filed late, are still waiting on a refund, or need to reference what dates applied to your 2025 return. Event2026 Date (Actual)IRS begins accepting returnsJanuary 26, 2026W-2 / 1099 forms due to recipientsJanuary 31, 2026**PATH Act hold lifts (EITC/ACTC refunds)****Feb 21, 2026** (status update); **~Mar 2, 2026** (payment) — [confirmed dates](https://savingtoinvest.com/2026-path-refund-status-irs-release-dates-confirmed/)Partnership / S-Corp returns (Form 1065 / 1120-S)March 16, 2026Standard federal filing deadline (Form 1040)April 15, 2026C-Corporation returns (Form 1120)April 15, 2026IRA / HSA contribution deadline for 2025April 15, 2026Q1 2026 estimated tax paymentApril 15, 2026Exempt Organizations (Form 990)May 15, 2026Q2 2026 estimated tax paymentJune 15, 2026Q3 2026 estimated tax paymentSeptember 15, 2026Extension filing deadlineOctober 15, 2026Annual RMD deadline (age 73+)December 31, 2026Q4 2026 estimated tax paymentJanuary 15, 2027 If you filed an extension and haven’t submitted your 2025 return yet, the October 15, 2026 deadline has passed. File immediately to stop the failure-to-file penalty from growing — it compounds at 5% per month up to 25% of unpaid taxes. See [IRS late filing penalties](https://savingtoinvest.com/what-happens-if-i-file-my-taxes-late-irs-penalty-and-getting-your-refund/) for the full breakdown. ## 2027 Tax Season — Estimated Dates for 2026 Filings These are **projected dates** based on IRS historical patterns. The IRS confirms the official start date in early January — I’ll update this page then. Event2027 Estimated DateNotesIRS begins accepting returns~January 25–27, 2027Based on recent years (Jan 23–29 range)W-2 / 1099 forms due to recipientsJanuary 31, 2027Statutory deadline — fixed**PATH Act hold lifts (EITC/ACTC refunds)****~Feb 20–21, 2027** (status); **~Mar 1–2, 2027** (payment)Estimated — IRS confirms each year. See [2026 PATH dates](https://savingtoinvest.com/2026-path-refund-status-irs-release-dates-confirmed/) for referencePartnership / S-Corp returns (Form 1065 / 1120-S)March 15, 2027Or September 15 with extension (Form 7004)First-year RMD (turned 73 in 2026)April 1, 2027First required minimum distribution from retirement accounts; born 1953Standard federal filing deadline (Form 1040)**April 15, 2027**Wednesday — no shiftC-Corporation returns (Form 1120)April 15, 2027Or October 15 with extensionIRA contribution deadline for 2026April 15, 2027Traditional and Roth IRAHSA contribution deadline for 2026April 15, 2027If on HDHP in 2026Q1 2027 estimated tax paymentApril 15, 2027For self-employed/gig workersExempt Organizations (Form 990)May 15, 2027Or November 15 with extensionQ2 2027 estimated tax payment**June 16, 2027**June 15 falls on Sunday — shifts to MondayExpats automatic extensionJune 16, 20272-month auto-extension for overseas filersQ3 2027 estimated tax paymentSeptember 15, 2027Partnership / S-Corp extension deadlineSeptember 15, 2027Individual extension filing deadline**October 15, 2027**Hard deadline — no further extensionsAnnual RMD deadline (age 73+)December 31, 2027Required minimum distributions for 2027Q4 2027 estimated tax paymentJanuary 15, 2028 One 2027 calendar quirk worth flagging: **Q2 estimated tax shifts to June 16** because June 15 lands on a Sunday. If you make quarterly estimated payments, don’t miss this one. *Things can shift when dates fall on weekends or federal holidays. I’ll confirm all 2027 dates once the IRS announces. [Subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) when I update this page.* ## When Does the IRS Start Accepting Returns? The IRS doesn’t accept returns on January 1. They need weeks after year-end to program tax code changes, update systems, and process new forms. The “opening day” has drifted slightly each year: Tax SeasonYear FiledIRS Opening Date2023 returns2024January 29, 20242024 returns2025January 27, 20252025 returns2026January 26, 20262026 returns2027~January 25–27, 2027 (estimated) You don’t have to wait for the IRS to open before preparing your return. Tax software opens for preparation weeks early — you just can’t submit until the IRS is ready. Filing on day one gets your return into the queue first and typically means a faster refund. **Example:** Sarah gets her W-2 on February 3, 2027. She e-files that same day with direct deposit. The IRS accepts her return within 48 hours and she gets her refund in her account by February 17. Had she waited until April, processing times lengthen as the IRS handles higher volume. For tax software options to get started early, see the [best tax software](https://savingtoinvest.com/taxes/) comparison on this site — including free filing options for straightforward returns. ## Refund Timeline: How Long Does It Take? The IRS states most refunds arrive within 21 days for e-filed returns. In practice, the timeline depends heavily on how you file and how you receive your refund: Filing MethodRefund MethodTypical TimelineE-fileDirect deposit**10–21 days**E-filePaper check3–4 weeksPaper returnDirect deposit6–8 weeksPaper returnPaper check8–12 weeks **PATH Act delay:** If you claim the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC), the IRS is required by law to hold those refunds until at least mid-February. This applies regardless of when you file. In 2026, the IRS lifted PATH holds and updated refund status by **February 21**, with payments releasing around **March 2** — see [2026 PATH Act release dates confirmed](https://savingtoinvest.com/2026-path-refund-status-irs-release-dates-confirmed/) for the full schedule. The earliest EITC/ACTC refunds typically arrive the last week of February for early filers. See the [IRS refund schedule and direct deposit cycle chart](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) for cycle-by-cycle timing. **How to check your refund status:** Use the [IRS Where’s My Refund tool](https://www.irs.gov/refunds) — it updates once daily, usually overnight. Have your SSN, filing status, and exact refund amount ready. Status shows as “Received,” then “Approved,” then “Sent.” **Example:** Mark files on February 1 with a $2,400 refund and no credits subject to PATH delays. He gets “Approved” status on February 8 and the deposit hits on February 12 — 11 days total. His coworker who mailed a paper return in March is still waiting in April. ## What Is the Average Tax Refund? One thing that motivates people to file early: the size of the check. For the 2026 tax season, the average federal refund hit **$3,676** as of early March — up over 10% from $3,324 at the same point in 2025. By early April it settled to **$3,462**, still up 11% year-over-year. The IRS paid out $241.7 billion in total refunds through early April, compared to $211.1 billion in 2025. The jump is largely one-time. The One Big Beautiful Bill Act (OBBBA) introduced new deductions for tips (up to $25,000) and overtime (up to $12,500) that applied to 2025 income — but the IRS hadn’t updated employer withholding tables before the year started. Workers were over-withheld all year, and the refund is the correction. About 70% of 2026 filers received a refund, up from roughly 63% in prior years. **For 2027 filings (2026 income), expect the average to come back down.** The IRS updated withholding tables to reflect OBBBA rules, so over-withholding will be much less common going forward. Smaller refund at filing time = more take-home pay in each paycheck during the year — the money doesn’t disappear, it just arrives differently. By state, Florida leads at **$3,852** and Maine is lowest at **$2,656**. States without income tax tend to run higher because residents often over-withhold at the federal level without a state withholding offset. See the full breakdown at [average IRS and state tax refund — all 50 states](https://savingtoinvest.com/average-irs-and-state-tax-refund-and-processing-times/), including prior-year trends and state-by-state processing times. ## Key Deadlines to Understand ### The April 15 Deadline April 15 is the federal due date for individual income tax returns (Form 1040) in most years. In 2027, April 15 falls on a Wednesday — no shifts to worry about. What’s actually due on April 15: - Your 2026 federal income tax return (or extension request via Form 4868) - Any taxes owed for 2026 - IRA and HSA contributions for 2026 (last chance) - Q1 2027 estimated tax payment (self-employed and investors) ### Filing an Extension Filing Form 4868 by April 15 gives you until **October 15** to submit your paperwork. But there’s a critical distinction I see people miss every year: **an extension to file is not an extension to pay.** If you owe taxes and file an extension without paying, interest (currently the federal short-term rate + 3%) and a 0.5%/month late payment penalty start accruing from April 15. One way to cover what you owe by April 15 even without the cash on hand: paying by credit or debit card — see my breakdown of the [costs, convenience, and other factors to consider](https://savingtoinvest.com/using-your-credit-or-debit-card-to-pay-taxes-costs-convenience-and-other-factors-to-consider/) before you do. By October 15, a $3,000 unpaid balance would accumulate roughly $135 in penalties and interest — avoidable by estimating and paying what you owe in April. ### Estimated Tax Payments If you’re self-employed, a freelancer, investor, or retiree without withholding, you’re likely required to make quarterly estimated payments. The schedule for 2027 (covering 2027 income): QuarterIncome CoveredDue DateQ1January – March 2027April 15, 2027Q2April – May 2027June 16, 2027Q3June – August 2027September 15, 2027Q4September – December 2027January 15, 2028 Note the uneven quarters — Q2 only covers two months. The safe harbor rule: pay at least 100% of last year’s tax liability (110% if AGI exceeded $150,000) and you avoid underpayment penalties regardless of what you end up owing. ### IRA Contribution Deadline You have until April 15 each year to make IRA contributions for the *prior* tax year. For 2026 income taxes, that means you can contribute to your Traditional or Roth IRA through **April 15, 2027** — even if you’ve already filed your return (you’d file an amended return if you want the Traditional IRA deduction). The 2026 IRA contribution limit is $7,000 ($8,000 if 50+). See [401(k) and IRA contribution limits](https://savingtoinvest.com/401k-ira-and-roth-ira-contribution-and-income-limits) for income phase-outs on Roth IRA eligibility and Traditional IRA deductibility. ## Common Issues to Watch Out For **1. Confusing the filing extension with a payment extension.** The most common mistake. Filing Form 4868 buys you time to submit paperwork — not time to pay. Estimate your liability and pay what you can by April 15. **2. Missing the Q2 estimated tax shift in 2027.** June 15 is a Sunday, so Q2 estimated taxes are due June 16. It’s one day, but worth double-checking your calendar reminder. **3. Waiting for all documents before filing.** W-2s are due January 31, but brokerages can send corrected 1099s through mid-February (sometimes later). If you own mutual funds or investments that pay late-arriving capital gain distributions, you might want to wait until late February to avoid an amended return. **4. Forgetting the IRA/HSA deadline runs with your return due date, not tax season opening.** If you file an extension, your return due date moves to October 15 — but your IRA/HSA contribution deadline stays April 15. Extensions don’t extend the contribution window. **5. Checking “Where’s My Refund” too early.** The tool won’t show a status until 24–48 hours after e-filing or 4 weeks after mailing. Checking before then just shows nothing. **6. Assuming state deadlines match federal.** Most states follow the April 15 federal schedule, but not all. Hawaii, Iowa, and Louisiana sometimes set different due dates. If you file in multiple states, verify each state’s revenue department directly — don’t assume the federal deadline applies. **7. Missing a disaster relief extension.** When the IRS declares a federal disaster area, it typically extends filing and payment deadlines automatically for affected taxpayers — sometimes by weeks or months. If your area was hit by a major storm, wildfire, or flood, check IRS.gov for current relief before filing or paying. **8. Waiting too long to claim a refund you’re owed.** You generally have three years from the original return due date to claim a tax refund. For 2026 income (return due April 2027), that window closes in 2030. After that, unclaimed refunds go to the U.S. Treasury. **9. Assuming you can e-file year-round.** The IRS shuts down its e-file system (Modernized e-File/MeF) for several weeks every winter to prepare for the next season — for the 2025-to-2026 transition, e-file for individual returns closed December 26, 2025 and didn’t reopen until the new season started January 26, 2026. If you’re catching up on a prior-year return during that window, e-file simply isn’t available — you have to paper file instead, regardless of extensions. --- Frequently Asked Questions QWhen can I file my taxes in 2027? AThe IRS is expected to begin accepting 2026 tax returns around January 25-27, 2027, based on recent years' patterns (the 2026 season opened January 26). The official start date will be announced in early January 2027. You can prepare your return in tax software before the IRS opens - you just can't submit until they start accepting. QWhat is the tax filing deadline for 2027? AThe federal tax filing deadline for 2026 income returns is April 15, 2027 (a Wednesday - no weekend shift). If you need more time, file Form 4868 for an automatic extension to October 15, 2027. Taxes owed are still due April 15 regardless of whether you file an extension. QHow long does a tax refund take in 2027? AMost e-filed returns with direct deposit receive refunds within 10-21 days. Paper returns take 6-12 weeks. If you claim the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC), the IRS is required to hold refunds until mid-February under the PATH Act. Use the IRS 'Where's My Refund' tool to track your specific refund status. QWhat is the average tax refund for 2026? AThe average 2026 federal tax refund was $3,676 as of early March (up 10.6% from 2025), settling to $3,462 by early April. The increase is driven by OBBBA deductions for tips and overtime that reduced taxable income for millions of workers. See the full breakdown at the average IRS tax refund article for state-by-state figures and prior-year trends. QWhat is the tax extension deadline in 2027? AIf you file Form 4868 by April 15, 2027, you get an automatic extension to October 15, 2027. This extension applies only to filing your paperwork - taxes owed are still due April 15. Failing to pay by April 15 results in interest and a 0.5%/month late payment penalty. QWhen is the Q2 2027 estimated tax payment due? AThe Q2 2027 estimated tax payment is due June 16, 2027 - not June 15 as in most years. June 15, 2027 falls on a Sunday, so the IRS moves the deadline to the next business day, Monday June 16. QDid the One Big Beautiful Bill change tax filing deadlines? ANo. The OBBB (signed July 4, 2025) made no changes to tax filing deadlines, refund timing, or the April 15 / October 15 extension structure. It did make lower income tax brackets permanent and increased the standard deduction ($16,100 for singles, $32,200 for married filing jointly in 2026), which affects how much you owe - but not when you file. QWhen is the IRA contribution deadline for the 2026 tax year? AYou have until April 15, 2027 to make IRA contributions for the 2026 tax year. This applies to both Traditional and Roth IRAs. Filing an extension does not extend this deadline - it remains April 15 regardless. The 2026 contribution limit is $7,000 ($8,000 if 50 or older). QCan I still e-file my taxes in December, or is e-file shut down for the year? AThe IRS closes its e-file system (MeF) for several weeks every winter to prepare for the next filing season - for the 2025-to-2026 transition, individual e-file closed December 26, 2025 and didn't reopen until January 26, 2026. If you're trying to catch up on a return during that window, you'll need to paper file instead; e-file isn't available no matter how you file an extension. The exact 2026-to-2027 shutdown date hasn't been announced yet, but expect a similar late-December-to-late-January window. **Categories:** Taxes and Retirement **Tags:** Due Date, Filing, IRS, refund, taxes --- ### [Why Is It Taking So Long to Get My Tax Refund? 2026 IRS Delay Reasons and Data](https://savingtoinvest.com/why-is-it-taking-so-long-to-get-my-tax-refund/) **Published:** March 8, 2013 **Author:** Andy **Content:** ### Key Takeaways - More than 14 million returns were suspended for review in the 2026 filing season, per the National Taxpayer Advocate's mid-year report. - Over 1 million filers waited an average of 5.5 weeks beyond the normal processing timeline. - The IRS's identity-verification phone line only answered 19% of calls, with 20-minute average waits. - Identity theft cases now take close to two years to resolve, with over 500,000 cases pending at season's end. - The most common delay causes are identity/income verification, EITC/ACTC PATH Act holds, math errors, offsets, and paper filing. - Don't call the IRS before 21 days have passed for e-filed returns - agents can't research your refund before then. - If your refund is delayed past 45 days from the filing deadline, the IRS owes you interest on it. The IRS says 9 out of 10 refunds go out within 21 days of an accepted e-filed return. But per the National Taxpayer Advocate’s mid-year report to Congress (released June 24, 2026), more than 14 million returns were suspended for further review this filing season, and over 1 million taxpayers waited an average of 5.5 weeks beyond normal processing. If you’re in that group, you’re not imagining it. Something in your return got flagged, and I want to walk through exactly what causes that, backed by this year’s actual numbers instead of the usual guesswork. Covered in this Article: [Toggle](#) - [The 2026 Filing Season By the Numbers](#The_2026_Filing_Season_By_the_Numbers) - [Why Is My Tax Refund Delayed? The Full List of Reasons](#Why_Is_My_Tax_Refund_Delayed_The_Full_List_of_Reasons) - [What To Do If Your Refund Is Delayed](#What_To_Do_If_Your_Refund_Is_Delayed) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027 Filing Season](#Looking_Ahead_2027_Filing_Season) ## The 2026 Filing Season By the Numbers The IRS processed roughly 139 million individual returns this season and issued more than 90 million refunds. That’s the good news — most filers really did get paid within the normal window. But the exceptions are large in absolute terms. Over 14 million returns got pulled into suspense status for manual review. More than 1 million filers waited an average of 5.5 weeks past the standard timeline, and for anyone flagged for identity verification, the picture is much worse. The IRS’s Taxpayer Protection Program (TPP) line — the number you call when your return is suspended for suspected identity theft — received about 2.4 million calls this season. The IRS only answered 19% of them, with an average 20-minute wait for the calls that did connect. Worse, identity theft cases that make it past the phone line into actual casework are taking close to two years to resolve, according to the Taxpayer Advocate Service (TAS). More than half a million of these cases were still sitting in inventory at the end of the filing season. For a filer counting on that refund to cover rent or a car repair, a two-year wait isn’t an inconvenience — it’s a real financial problem. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates as the IRS releases new processing data throughout the year.* ## Why Is My Tax Refund Delayed? The Full List of Reasons Here’s the complete rundown of what actually causes a refund to run past the normal 21-day window, from the most common to the more obscure. **Your return needs identity or income verification.** This is the single biggest driver of long delays right now, given the TPP backlog above. You’ll usually get a letter (like a 4883C or 5071C) asking you to verify your identity before the IRS releases anything. **Math errors or mismatched data.** If your SSN, dependent information, or reported income doesn’t match IRS records (including what your employer reported on your W-2), the return gets kicked into manual review. Filing with your final W-2 instead of a last pay stub avoids most of this. **EITC or Additional Child Tax Credit claims.** Returns claiming the Earned Income Tax Credit or Additional Child Tax Credit are held by law under the PATH Act until at least mid-to-late February, regardless of when you filed. This is routine and not a sign anything is wrong. **Form 8379, Injured Spouse Allocation.** This form protects one spouse’s share of a refund from being seized for the other spouse’s past debts, but it adds manual processing — often 11 to 14 weeks. **Refund offsets.** If you or your spouse owe federal debts (back taxes, defaulted student loans, child support), the Treasury Offset Program can reduce or fully claim your refund before it’s paid out. You’ll get a separate notice explaining the offset — see my [breakdown of why a refund can come back lower than expected](https://savingtoinvest.com/why-is-my-tax-refund-so-low-compared-to-prior-years/) for more on this. **Paper filing or a mailed return.** Paper returns take significantly longer to process than e-filed ones — budget on 6 weeks minimum, longer if the IRS is dealing with backlogs elsewhere. **Incorrect bank account or routing numbers.** Since most refunds go out via direct deposit, a single wrong digit can bounce the payment back to the IRS, which then has to reissue it as a paper check. **[Amended returns](https://savingtoinvest.com/amended-tax-return-refund-schedule-rules-form-1040x-and-deadlines/).** These are processed entirely separately from original returns and can take 16 weeks or more. **Returns flagged for standard review.** Every return runs through the IRS’s automated scoring systems looking for [common audit red flags](https://savingtoinvest.com/irs-audit-triggers-and-red-flags-for/) — unusually large deductions relative to income, new credits you haven’t claimed before, or math that doesn’t tie out. A flag here doesn’t mean you’re being audited, just that a human needs to look at it before the refund releases. **The shift toward electronic-only payments.** Executive Order 14247, which phases out most paper Treasury checks in favor of electronic payments, has added friction for filers without direct deposit set up correctly — another factor the IRS has cited in this year’s processing data. **Your tax prep fees were deducted from your refund.** If you had TurboTax, H&R Block, or similar fees taken out of your refund, the IRS sends the full amount to an intermediary bank (commonly Santa Barbara Tax Products Group/SBTPG) first, which deducts the fee and forwards the rest — adding roughly 1–2 business days after your IRS deposit date. If your software shows “funded” but nothing’s hit your account, that’s the processor confirming receipt, not your bank — check your transfer status directly at the processor’s own site (taxpayer.sbtpg.com for SBTPG) before assuming something’s wrong with your IRS refund. ## What To Do If Your Refund Is Delayed First, check [Where’s My Refund (WMR) or the IRS2Go app](https://savingtoinvest.com/wmr-and-irs2go-status-differences-return-received-accepted-or-under-review-and-refund-approved-versus-refund-sent/) daily rather than calling, and compare your timeline against the [current IRS refund schedule](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/). WMR updates once every 24 hours and will show a status code or message if something needs your attention. If WMR shows [Tax Topic 152](https://savingtoinvest.com/what-does-irs-tax-topic-code-152-mean-for-my-refund-payment/), that’s just the generic “still processing” message — no action needed yet. If you see Tax Topic 151 or a reference code like 1242, that typically means your return has been pulled for a more detailed review, and you may get a letter with next steps. If WMR shows a specific error code and short description, the [WMR/IRS2Go error code glossary](https://savingtoinvest.com/irs-tax-topic-error-codes-on-where-is-my-refund-wmr-and-irs2go/) has more detail on what each one actually means. You can also check your [free IRS tax transcript](https://savingtoinvest.com/using-your-irs-transcript-to-get-your-tax-return-and-refund-processing-status-and-key-dates/) for transaction codes that show more detail than WMR does — codes like 570 (additional review pending), 846 (refund issued), or 971 (a notice was sent) are common ones to watch for. If it’s been more than 21 days (or 6 weeks for a paper return) and WMR has no update, your next move is [contacting the IRS directly](https://savingtoinvest.com/no-tax-refund-after-21-days-tips-on-contacting-the-irs/) — I’ve got a full breakdown of which numbers actually get you a live agent and when to call for the best odds. If the delay has dragged on for months and you’re facing real financial hardship, the [Taxpayer Advocate Service](https://savingtoinvest.com/contact-a-tax-advocate-to-help-get-your-refund-released-from-the-irs/) is an independent unit inside the IRS that can sometimes get a case moving when the standard channels haven’t worked. ## Common Issues to Watch Out For I get a version of the same handful of questions every filing season, so here’s what trips people up most: **Confusing “accepted” with “approved.”** Your return being accepted just means the IRS received it and it passed a basic formatting check — it says nothing about when (or whether) a refund is coming. **Calling too early.** The IRS explicitly tells agents not to research your refund status until 21 days have passed for e-filed returns. Calling on day 10 just gets you told to wait. **Assuming a transcript update means a refund is imminent.** The IRS has said directly that being able to view your transcript does not mean your refund has been approved or is about to be sent. **Not opening IRS letters.** If you get a notice, it usually has a deadline and a specific ask (documentation, identity verification, etc.). Ignoring it almost always makes the delay longer, not shorter. **Overlooking the silver lining.** If your refund is delayed past the 45-day mark from the filing deadline, the IRS owes you [interest on the money it’s holding](https://savingtoinvest.com/millions-set-to-receive-irs-tax-refund-interest-payments/) — small, but it’s something. ## Looking Ahead: 2027 Filing Season A few things I’m watching heading into next tax season. First, whether the IRS can bring the TPP phone-answer rate up from 19% — that number, more than anything else, is driving the worst of this year’s delays. Second, how far along the Executive Order 14247 transition to electronic-only Treasury payments gets, since that’s been a real source of friction for filers who haven’t updated their direct deposit information. I’ll also be watching IRS staffing levels, since continued hiring constraints tend to show up directly in review-queue wait times. And as always, keep an eye on the [PATH Act refund release dates](https://savingtoinvest.com/tax-refund-payment-delays-likely-according-to-the-irs/) each year if you’re claiming EITC or ACTC — those dates get confirmed by the IRS in December or January. I’ll update this page as the 2027 season firms up. **Update:** one data point that firmed up since this page was last refreshed — the IRS’s own workforce has fallen roughly 29% amid hiring freezes and attrition, and the Government Accountability Office flagged that drop in an August 2026 report as a specific risk to next year’s filing season. That’s the clearest evidence yet for why review-queue wait times likely won’t improve much heading into 2027 without a change in staffing trajectory. Frequently Asked Questions QWhy is my tax refund taking longer than 21 days? AThe most common reasons are identity or income verification holds, math errors or data mismatches, EITC/ACTC claims held under the PATH Act, Form 8379 injured spouse claims, refund offsets for federal debts, or simply filing a paper return. Checking Where's My Refund or your tax transcript will usually show which applies to you. QWhat does Tax Topic 152 mean on Where's My Refund? ATax Topic 152 is the IRS's generic 'still processing' message. It doesn't mean anything is wrong - it's shown to most filers while their return moves through normal processing. QHow long does IRS identity verification take in 2026? APer the National Taxpayer Advocate's 2026 mid-year report, identity theft cases are taking close to two years to fully resolve, with the IRS's identity-verification phone line answering only 19% of calls this season. QWhen should I call the IRS about a delayed refund? AWait until at least 21 days have passed since your e-filed return was accepted (6 weeks for a paper return). The IRS won't research your refund status before then. QCan a Taxpayer Advocate speed up my refund? ASometimes, if your case qualifies and you're facing genuine financial hardship. The Taxpayer Advocate Service can't help until the IRS has actually started processing your return, and it only accepts cases where it can meaningfully improve your outcome. QDoes the IRS pay interest on a delayed refund? AYes. By law, the IRS must pay interest on refunds delayed more than 45 days past the filing deadline, at a rate set quarterly (7% for individual overpayments in Q3 2026). QMy refund shows as “funded” or “sent” in my tax software, but it's not in my bank account - is that a delay? ANot an IRS delay - if you had prep fees deducted from your refund, your money routes through an intermediary bank (commonly Santa Barbara Tax Products Group/SBTPG) that deducts the fee and forwards the rest, adding roughly 1-2 business days on top of the IRS's own deposit date. “Funded” means the processor received the money, not that it's in your account yet. QHas the IRS's staffing shortage gotten worse heading into the 2027 filing season? AYes. IRS workforce levels have fallen roughly 29% amid hiring freezes and attrition, and the Government Accountability Office flagged this drop in an August 2026 report as a specific risk to 2027 filing-season processing times. Staffing is one of the biggest drivers of how long review-queue delays run. **Categories:** Taxes and Retirement **Tags:** 2016, direct deposit, IRS, refund, tax, transcript, WMR --- ### [IRS Tax Transcript Code 810 Refund Freeze and What It Means When Followed By Code 811](https://savingtoinvest.com/irs-tax-transcript-code-810-refund-freeze-and-what-it-means/) **Published:** November 8, 2022 **Author:** Andy **Content:** ### Key Takeaways - Code 810 means the IRS has fully frozen your refund pending resolution of an identified issue - a stronger hold than a 570. - You'll get a formal notice (also shown as code 971) within about 30 days explaining what's needed from you. - Common 2026-2027 triggers include identity verification and mismatches tied to OBBBA overtime/tips claims or 1099-DA digital asset reporting. - Code 811 means the freeze has been lifted - but wait for code 846 to confirm your refund was actually issued. - Responding promptly to any IRS notice is the fastest way to move from 810 to 811 to 846. [Transaction codes](https://savingtoinvest.com/irs-tax-topic-error-codes-on-where-is-my-refund-wmr-and-irs2go/) are used on IRS tax transcripts to show filers what has happened with their return processing, reasons for potential delays, when a refund will be paid, or why it’s delayed. Given ongoing challenges in getting through to a [live IRS agent](https://savingtoinvest.com/how-can-i-actually-speak-to-a-real-person-or-agent-at-the-irs-phone-numbers-that-work/), many taxpayers are turning to their free IRS transcript to see exactly what’s happening with their return and refund. **[Get the latest money, tax and stimulus news directly in your inbox](https://savingtoinvest.com/subscribe)** Covered in this Article: [Toggle](#) - [Tax Transcript Code 810](#Tax_Transcript_Code_810) - [What Does Code 810 Mean on My Transcript?](#What_Does_Code_810_Mean_on_My_Transcript) - [What If I See Code 810 and Then Code 811?](#What_If_I_See_Code_810_and_Then_Code_811) ### Tax Transcript Code 810 You can see a full listing of [transcript transaction codes in this article](https://savingtoinvest.com/irs-tax-topic-error-codes-on-where-is-my-refund-wmr-and-irs2go/), but this article focuses specifically on transaction code 810 (**TC 810**), which many filers see after the IRS has completed initial processing on a regular or [amended return](https://savingtoinvest.com/wheres-my-amended-tax-return-and-when-will-i-get-my-refund/). Look at the date column to see when the code posted. If TC 810 appears out of sequence relative to when your return started processing ([TC 150](https://savingtoinvest.com/what-does-irs-tax-topic-code-152-mean-for-my-refund-payment/)), it usually means you’ve been waiting a while already for your return to clear. ![IRS Tax Transcript Code 810 - Refund Freeze](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2022/11/image-2.png?resize=512%2C1024&ssl=1)IRS Tax Transcript Code 810 – Refund Freeze### What Does Code 810 Mean on My Transcript? TC 810 means the IRS found an issue with your return and has **frozen any additional refund payments**. Your account is on hold, and any scheduled refund is held up until the issue is resolved. The IRS’s next step is generally to [issue a notice](https://savingtoinvest.com/should-i-be-worried-if-i-get-an-irs-notice-or-letter-will-it-affect-my-tax-return-processing-or-refund-payment/) explaining why your account/refund is on hold and what additional information or action is needed. This can include identity verification if your income and credits show significant variance from what’s on file — including OBBBA overtime/tips deduction claims or Form 1099-DA digital asset reporting that doesn’t match employer or broker data. You’ll see [code 971](https://savingtoinvest.com/refund-status-return-processing-has-been-delayed-beyond-the-normal-timeframe/) on your transcript when the letter is issued, and you may see a copy in your IRS online account. You’ll also receive a formal letter within about 30 days, which you should review and respond to promptly. Once you’re able to respond to or address the IRS’s concerns, your freeze lifts and payment is issued, reflected via [code 846](https://savingtoinvest.com/code-846-refund-issued-on-your-irs-tax-transcript-what-it-means-for-your-direct-deposit-or-paper-check-refund-payment/) with a payment date. You may also see code 811, discussed below. **Note:** You may also see the line with code 150 update along with the [8-digit cycle code](https://savingtoinvest.com/irs-refund-cycle-code-and-dates-using-tax-transcript-to-get-master-file-information-for-your-direct-deposit-date/), with a later date, as the IRS processes next steps on your return. ### What If I See Code 810 and Then Code 811? Some filers see code 811 (*removed from refund freeze*) following code 810 and other action codes (like 571) on their transcript. ![Transcript Code 811 - Refund Release From Freeze](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2023/02/image-4.png?resize=812%2C320&ssl=1)Transcript Code 811 – Refund Release From FreezeThis is a good sign — it means that after IRS action (or your own, like filing an [amended return](https://savingtoinvest.com/irs-tax-transcript-reviews-for-adjusted-amended-returns-with-no-refund-or-offsets-delaying-payment/), reflected via codes 977 and 971) the IRS resolved your filing issues and released your refund for payment. You’ll still want to see line 846 (refund issued) to confirm your refund actually went out. One combination that trips people up: seeing code 810 while your transcript also shows “No Tax Return Filed” or reads mostly blank above it. That’s not the IRS losing your return — it means code 150 (the line that confirms your return has actually posted) hasn’t shown up yet. This is common when a return gets pulled for identity verification or further review before normal processing finishes, so the 810 hold can appear on the account before the return itself has fully posted. Keep checking for code 150 and the formal notice (code 971) rather than assuming something went wrong. Frequently Asked Questions QIs Code 810 worse than Code 570? AGenerally yes - 810 is a full refund freeze, while 570 is more of a processing hold. Both stop your refund until resolved, but 810 typically follows a more specific issue the IRS has already identified with your account. QHow long does a Code 810 freeze last? AIt varies by case, but expect to wait for a formal IRS notice (within about 30 days) explaining what's needed, followed by however long it takes you to respond and the IRS to process that response. QWhat should I do if I see Code 810 on my transcript? AWatch your mail and IRS online account for a formal notice, and respond promptly and completely to whatever it requests. Calling the IRS before you've received the notice usually won't get you more information. QDoes Code 811 mean my refund is coming immediately? AIt means the freeze has been lifted, which is a good sign, but you still need to see Code 846 (refund issued) with a date to know your refund has actually been approved for payment. QWhat does Code 810 with “No Tax Return Filed” on my transcript mean? AIt means code 150 - the line confirming your return has posted - hasn't shown up yet, not that the IRS lost your return. This combination is common when a return is pulled for identity verification or further review before normal processing finishes. Keep checking for code 150 and a code 971 notice. **Categories:** Taxes and Retirement --- ### [Social Security Overpayment Clawback: SSA Can Take 50% of Your Check — Here's How to Fight It](https://savingtoinvest.com/social-security-overpayment-clawback/) **Published:** August 5, 2026 **Author:** Andy **Content:** ### Key Takeaways - If you get a new Social Security overpayment notice, SSA's default withholding rate is now 50% of your monthly benefit for retirement, survivor, and SSDI recipients - SSI recipients stay capped at 10%. - The 50% rate has been in place since April 25, 2025 (Emergency Message EM-25029), after SSA briefly tried a 100% clawback rate in March 2025 and reversed course within weeks under public pressure. - You have 30 days from the date on your notice to request a waiver, appeal, or lower withholding rate and pause collection while SSA reviews it - wait past 90 days and automatic withholding starts regardless. - Overpayments of $2,000 or less where you weren't at fault can often be waived with a single phone call to SSA, under a 2026 administrative streamlining effort. - A waiver cancels the debt entirely if the overpayment wasn't your fault and repaying it would cause financial hardship - an appeal disputes whether you were overpaid at all. - Roughly 2 million people receive Social Security overpayment notices each year; most overpayments stem from SSA's own errors or delays in processing reported income changes, not fraud. If a letter from the Social Security Administration says you were overpaid, the clock starts the day it’s dated — not the day you open it. SSA’s current default rate for clawing back that money is **50% of your monthly benefit**, and it starts automatically if you don’t respond within 90 days. That 50% figure is itself the product of a chaotic year. SSA jumped from a 10% withholding cap under the Biden administration, to a full 100% clawback in March 2025, then walked that back to 50% by the end of April 2025 after an intense public backlash. It’s been at 50% ever since, and I don’t see signs of it changing again soon. Here’s what the notice actually means, what your options are, and how to avoid losing half your check while you sort it out. Covered in this Article: [Toggle](#) - [How SSA Got to 50% Withholding](#How_SSA_Got_to_50_Withholding) - [Why People Get Overpaid in the First Place](#Why_People_Get_Overpaid_in_the_First_Place) - [Your 90-Day Window — And Why the First 30 Days Matter Most](#Your_90-Day_Window_%E2%80%94_And_Why_the_First_30_Days_Matter_Most) - [Appeal, Waiver, or Lower Rate: Which One Do You Need?](#Appeal_Waiver_or_Lower_Rate_Which_One_Do_You_Need) - [The $2,000 Fast-Track Waiver](#The_2000_Fast-Track_Waiver) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) ## How SSA Got to 50% Withholding For years, SSA capped overpayment withholding at 10% of a beneficiary’s monthly check — a policy meant to protect people, often elderly or disabled, from losing their entire income over debts they frequently didn’t cause. That changed fast in 2025. On March 7, 2025, SSA announced it would raise the default withholding rate to **100%** of a person’s benefit — meaning your entire check could disappear until the debt was repaid. Notices under the new 100% rate started going out March 27, 2025. The backlash was immediate. Advocacy groups, disability rights organizations, and members of Congress from both parties pushed back hard, warning that a 100% clawback would leave vulnerable beneficiaries with zero income for months. SSA reversed course quickly: **Emergency Message EM-25029**, issued April 25, 2025, set the new default at 50% of the monthly benefit for Title II (retirement, survivor, and SSDI) overpayments. SSI recipients were left at the original 10% cap the entire time. If your overpayment notice is dated April 25, 2025 or later, 50% is the rate that applies unless you take action. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) if you want a heads-up should SSA change this rate again — it’s moved twice in the last two years.* ## Why People Get Overpaid in the First Place Most overpayments aren’t fraud — they’re bureaucratic. Common causes include: - **Delayed processing of income changes.** You reported new earnings or a job change, but SSA didn’t adjust your benefit in time, so you kept getting the old (higher) amount for months. - **Unreported changes for SSI.** SSI is income- and resource-tested, so a bank account crossing $2,000, a new job, or help from a family member can trigger an overpayment if it isn’t reported promptly. - **SSA’s own calculation errors.** SSA’s Office of the Inspector General has repeatedly flagged agency processing mistakes as a leading driver of overpayments. - **Continued payments after a beneficiary’s death or a change in marital or living status** that wasn’t updated in SSA’s system right away. **Example — Denise**, 68, started a part-time consulting gig in early 2025 and reported the income to SSA right away. SSA’s system took five months to actually reduce her benefit, and by the time it caught up, she’d been overpaid $2,600. None of that was her fault — but she still received a standard overpayment notice with the 50% default withholding rate attached. ## Your 90-Day Window — And Why the First 30 Days Matter Most The date on your notice is the trigger. From there: **Within 30 days:** If you file a request for reconsideration (appeal), a waiver, or a lower withholding rate within 30 days of the notice date, SSA generally pauses any withholding while it reviews your request. This is the cleanest path — act fast and nothing gets taken from your check while SSA sorts it out. **Between 30 and 90 days:** You can still file any of the three requests, but SSA may begin withholding at the 50% (or 10% SSI) rate before it finishes reviewing your case. You could see reduced checks for a stretch even if your request eventually succeeds. **After 90 days:** If you haven’t filed anything, automatic withholding begins and continues until the overpayment is fully recovered — or until you successfully file one of the requests below, whichever comes first. ## Appeal, Waiver, or Lower Rate: Which One Do You Need? These three options solve different problems, and picking the right one matters. **Request for Reconsideration (appeal):** Use this if you believe you weren’t actually overpaid, or the amount SSA calculated is wrong. This disputes the debt itself — not your ability to pay it. **Waiver Request (Form SSA-632):** Use this if you agree you were overpaid, but you believe it wasn’t your fault and that repaying it would cause financial hardship. A successful waiver cancels the debt — you don’t have to pay any of it back. **Request for a Lower Withholding Rate (Form SSA-634):** Use this if you accept the overpayment and expect to repay it, but 50% (or 10% for SSI) is more than you can afford each month. SSA can agree to a smaller monthly deduction stretched over a longer period. **Example — Marcus**, an SSDI recipient overpaid $4,800 after SSA miscalculated his workers’ comp offset, filed a waiver within three weeks of his notice. Because the error was entirely SSA’s and repaying it would have put him behind on rent, SSA approved the waiver and canceled the debt — he owed nothing. ## The $2,000 Fast-Track Waiver One meaningful change in 2026: SSA has been encouraging staff to resolve smaller overpayments — **$2,000 or less** — more informally when the beneficiary wasn’t at fault. In many cases, a phone call to the national line at **1-800-772-1213** is enough to get a small, no-fault overpayment waived without filing paperwork. It’s worth trying this route first if your overpayment falls under that threshold. ## Common Issues to Watch Out For I get a lot of reader questions about this, and a few mistakes come up repeatedly. **Assuming the notice is a scam and ignoring it.** Overpayment notices look alarming and arrive with dense government language, which makes some people assume they’re fake. They’re usually real. Confirm through your [my Social Security account](https://www.ssa.gov/myaccount/) rather than ignoring the letter outright. **Waiting past 30 days “to think it over.”** Every day past the 30-day mark increases the odds you’ll see reduced checks before SSA rules on your request, even if you ultimately win. File something — even a phone call to start the process — as early as possible. **Confusing an appeal with a waiver.** Filing a waiver when you actually dispute the overpayment amount (or vice versa) can slow down your case. If you’re not sure which applies, SSA staff or a benefits counselor can help you pick. **Not documenting financial hardship.** Waiver requests succeed or fail largely on the financial hardship showing — pay stubs, rent or mortgage statements, and monthly expenses matter. Vague claims of hardship without documentation are harder to approve. **Missing that SSI stayed at 10%.** If you receive SSI only (not SSDI or retirement benefits), your default withholding rate never moved from 10% — some readers assume the 50% rate applies to them and panic unnecessarily. ## Looking Ahead: 2027 Outlook I’m watching a few things that could shift this again. Congressional Democrats have continued pushing legislation to reinstate the original 10% cap across all benefit types, though nothing has passed as of mid-2026. SSA’s Office of Inspector General has also signaled interest in addressing the root causes of overpayments — particularly processing delays — rather than just the collection side, which could reduce how often these notices go out in the first place. And the informal $2,000 fast-track waiver process is still fairly new; whether it becomes a permanent, formalized policy or fades out is worth watching. I’ll update this page if SSA changes the default rate again — it’s happened twice already. Frequently Asked Questions QWhat is the current Social Security overpayment withholding rate? AFor retirement, survivor, and SSDI (Title II) recipients, the default rate is 50% of your monthly benefit, in place since April 25, 2025. SSI recipients remain at a 10% withholding cap. QHow long do I have to appeal a Social Security overpayment notice? AFile a request for reconsideration, waiver, or lower withholding rate within 30 days of the notice date to pause collection during SSA's review. You have up to 90 days total before automatic withholding begins regardless of whether you've filed. QWhat's the difference between an appeal and a waiver for a Social Security overpayment? AAn appeal (Request for Reconsideration) disputes whether you were overpaid or how much. A waiver accepts that you were overpaid but asks SSA to cancel the debt because it wasn't your fault and repaying it would cause financial hardship. QCan I get a lower withholding rate than 50%? AYes. File Form SSA-634 (Request for Change in Overpayment Recovery Rate) if you can't afford 50% of your check each month. SSA can agree to a smaller monthly deduction spread over a longer period. QWill SSA waive a small overpayment automatically? AOverpayments of $2,000 or less where you weren't at fault can often be resolved with a phone call to 1-800-772-1213 under SSA's 2026 streamlined process, without filing formal paperwork. QDid the 100% withholding rate from March 2025 ever actually take effect? ABriefly. SSA announced the 100% rate March 7, 2025, and began sending notices under it March 27, 2025, but reversed to the current 50% default by April 25, 2025 after widespread public and congressional pushback. QWhat if I ignore my overpayment notice completely? AAfter 90 days with no response, SSA begins automatic withholding at the default rate (50% or 10% for SSI) and continues until the debt is fully recovered, unless you later file a successful waiver, appeal, or rate-reduction request. **Categories:** Taxes and Retirement --- ### [Medicaid Work Requirements Start January 1, 2027 — Do You Qualify to Keep Your Coverage?](https://savingtoinvest.com/medicaid-work-requirements/) **Published:** August 2, 2026 **Author:** Andy **Content:** ### Key Takeaways - Starting January 1, 2027, roughly 20 million Medicaid expansion enrollees in 43 states plus DC must show 80 hours a month of work, school, job training, or community service to keep their coverage. - Georgia has required this since 2023 under its Pathways to Coverage waiver; Nebraska went live May 1, 2026, and Montana and Arkansas followed July 1, 2026 - these states are a preview of what's coming nationally. - The 80-hour threshold can be met by employment, half-time school enrollment, an approved job training or work program, community service, or earning at least $580 in a month (80 hours at federal minimum wage) - activities can be combined to hit the total. - Broad exemptions apply: medical frailty or disability, pregnancy, parents/caretakers of children under 14, former foster youth, and Native American or Alaska Native beneficiaries. - Compliance has to be reported at least every six months, and some states will require more frequent check-ins - states are supposed to verify via existing data (payroll, other benefit records) before asking beneficiaries for extra paperwork. - This applies only to the ACA expansion population - non-pregnant adults ages 19-64. Traditional Medicaid eligibility categories (children, seniors, people with disabilities on non-expansion Medicaid) are not affected. If you’re on Medicaid through your state’s Affordable Care Act expansion, mark January 1, 2027 on your calendar. That’s when a new federal work requirement — part of Trump’s One Big Beautiful Bill ([OBBB)](https://savingtoinvest.com/reconciling-trumps-big-beautiful-bill-bbb/ "2026–2027 One Big Beautiful Bill Act (OBBBA): What Every Tax Filer Needs to Know") — takes effect nationwide, and roughly 20 million adults will need to document 80 hours a month of qualifying activity to keep their coverage. A handful of states aren’t waiting for the federal deadline. [Georgia](https://savingtoinvest.com/georgia-unemployment-benefits/ "Georgia Unemployment Insurance (GDOL) Benefits in 2026 — $365/Week, Up to 14 Weeks") has run its own version since 2023, and Nebraska, Montana, and Arkansas have already flipped the switch in 2026 — giving a real preview of how this is likely to play out everywhere else. Here’s who’s affected, what counts, who’s exempt, and what to do to avoid getting dropped from coverage over a reporting gap rather than an actual eligibility problem. Covered in this Article: [Toggle](#) - [Who This Applies To](#Who_This_Applies_To) - [What Counts as 80 Hours](#What_Counts_as_80_Hours) - [Who’s Exempt](#Whos_Exempt) - [How Reporting Actually Works](#How_Reporting_Actually_Works) - [Is This Actually Still Happening on Schedule?](#Is_This_Actually_Still_Happening_on_Schedule) - [The State Preview: What Georgia, Nebraska, Montana, and Arkansas Show](#The_State_Preview_What_Georgia_Nebraska_Montana_and_Arkansas_Show) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) ## Who This Applies To This requirement only touches the **ACA Medicaid expansion population**: non-pregnant adults ages 19 to 64 who qualified for Medicaid because their state expanded eligibility under the Affordable Care Act. It does not apply to children, pregnant women, seniors, or people who qualify for [Medicaid ](https://savingtoinvest.com/wp-content/uploads/2026/07/2026-07-25-medicaid-work-requirements-start-january-1-2027-do-you-quali-featured.jpg "Medicaid Work Requirements Start January 1 2027 Do You Qualify to Keep Your Coverage – featured illustration")through disability-based eligibility categories outside the expansion group. Forty-three states plus DC are subject to the requirement — the states that expanded Medicaid, plus Georgia and Wisconsin, which run partial expansion programs under their own waivers. ## What Counts as 80 Hours You can meet the requirement through any combination of: - **Employment** — paid work, any amount that adds up to 80 hours in the month - **Half-time school enrollment** — community college, vocational training, or a degree program - **An approved job training or work program** - **Community service or volunteer work** through an approved organization - **Earning at least $580 in a month** — this is simply 80 hours at the federal minimum wage, so if your paycheck shows you cleared that amount, the hours requirement is effectively satisfied regardless of how many actual hours you logged Activities can be combined. Twenty hours of part-time work plus a half-time community college course, for example, can add up to a qualifying month even if neither alone would clear 80 hours. ## Who’s Exempt The exemption list is broader than a lot of the early coverage suggested, and it’s worth checking carefully before assuming you’re on the hook: - **Medical frailty or disability** — including anyone SSA has already determined disabled, and people with serious or complex medical conditions - **Pregnancy** and a postpartum period after - **Parents or caretakers of a child under 14** - **Former foster youth** - **Native American and Alaska Native beneficiaries** - Several states also carve out exemptions for people experiencing homelessness or involved in substance use treatment, though this varies by state **Example — Renee**, 34, is a single mother in Georgia caring for her 6-year-old son. Because she’s a caretaker of a child under 14, she’s exempt from the work requirement entirely — she doesn’t need to report hours or document an exemption reason beyond her son’s age being on file with the state. **Example — David**, 41, lost his warehouse job in early 2026 and picked up part-time gig delivery work while job hunting. His gig income during a good month clears $580, which satisfies the requirement on its own — but during slower months, he has to combine it with the roughly 15 hours a week he spends at a state-approved job training program to stay above the 80-hour threshold. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) — I’ll update this page as more states finalize their reporting systems ahead of the January 2027 deadline.* ## How Reporting Actually Works States must verify compliance at least every six months, and some are expected to require more frequent reporting — monthly or quarterly, depending on how each state builds its system. States are directed to check existing data sources first — payroll records, unemployment insurance wage data, or other benefit program records — before requiring beneficiaries to submit additional documentation themselves. In practice, this means the biggest risk for a lot of people isn’t actually failing to meet the 80-hour threshold — it’s a reporting or verification gap. If your state’s system can’t automatically confirm your hours through existing data, you’ll be asked to submit proof yourself, and missing that request is what typically triggers a coverage termination, not an actual failure to work enough hours. ## Is This Actually Still Happening on Schedule? Yes — and as of this update, there’s less uncertainty about that than there was a few weeks ago. Twenty-six states asked a federal court to postpone or block the work requirements before they take effect, arguing states needed more time to build reporting systems. A federal judge **denied that request on July 30, 2026**, declining to issue an injunction. Barring a separate legal development, the January 1, 2027 national start date stands. Separately, if you’ve gotten an unfamiliar piece of mail, text, or automated call about Medicaid work requirements recently, it’s probably not a scam — states are required to run a formal recipient outreach campaign between **June 30 and August 31, 2026**, using mail plus at least one additional channel (phone, text, or an online portal notice) to reach everyone in the ACA expansion population before the requirement takes effect. If you’re not sure a piece of outreach is legitimate, the safest move is to log into your state Medicaid portal directly (don’t click a link in a text) or call your state Medicaid office using the number on your card or a past official notice. ## The State Preview: What Georgia, Nebraska, Montana, and Arkansas Show Georgia’s Pathways to Coverage program has run since July 2023, and it’s been closely watched as a real-world test case — enrollment has consistently come in well below projections, which advocates attribute largely to the administrative burden of reporting rather than beneficiaries failing to meet the work threshold itself. [Nebraska](https://savingtoinvest.com/nebraska-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/ "2026 Updates: Nebraska (NE) SNAP Food Stamp Program — EBT Amounts, Deposit Dates, and Eligibility") became the first state to implement the new federal-law version of the requirement, going live May 1, 2026. Montana and Arkansas followed July 1, 2026, though Arkansas is running a “soft implementation” — meaning no one will actually lose coverage for noncompliance there until January 2027, giving the state time to work out reporting kinks first. Iowa is scheduled to start December 1, 2026, just ahead of the national deadline. ## Common Issues to Watch Out For A few things I’d flag if this applies to you or someone in your household. **Assuming your exemption is automatic.** Some exemptions (like a documented disability already on file with SSA) may transfer automatically, but others — like caretaker status for a child under 14 — may require you to confirm it with your state Medicaid office rather than assuming it’s already recorded. **Missing a reporting deadline while working enough hours.** Based on Georgia’s experience, procedural terminations — losing coverage because paperwork wasn’t submitted on time — are a bigger risk than actually falling short on hours. Set a calendar reminder for whatever reporting cadence your state adopts. **Not knowing your state’s specific rules yet.** Because implementation is being phased in state by state through 2026 and finalized by January 2027, exact reporting mechanics differ. Check your state Medicaid agency’s website directly rather than relying on a national overview alone. **Underestimating gig and seasonal income months.** If you rely on gig work or seasonal employment, some months may clear $580 easily and others may not — track your monthly totals so you know when you need to combine income with another qualifying activity. **Assuming this affects all Medicaid, not just expansion coverage.** If you qualify for Medicaid through a disability determination, as a child, or as a senior on a non-expansion pathway, this requirement doesn’t apply to you at all. ## Looking Ahead: 2027 Outlook The national rollout hinges heavily on whether states can build reporting systems that actually verify hours through existing payroll and benefits data, rather than dumping the paperwork burden on beneficiaries. Georgia’s experience suggests that’s the real risk factor to watch — not whether people can find 80 hours of qualifying activity, but whether the bureaucracy correctly counts it. I’d also watch for litigation: several advocacy groups have signaled they may challenge state implementation plans that lean too heavily on manual reporting instead of automated verification, similar to challenges that slowed some 2023-era state waiver rollouts. I’ll update this page as more states finalize their systems and as the January 1, 2027 deadline approaches. Frequently Asked Questions QWhen do Medicaid work requirements start nationwide? AJanuary 1, 2027, for the ACA Medicaid expansion population in 43 states plus DC. Some states - Georgia, Nebraska, Montana, and Arkansas - already have versions in effect before the national deadline. QHow many hours do I need to work to keep Medicaid? A80 hours a month, which can come from employment, half-time school enrollment, an approved job training or work program, community service, or earning at least $580 in a month (80 hours at federal minimum wage). Activities can be combined. QWho is exempt from Medicaid work requirements? APeople who are medically frail or disabled, pregnant, caretakers of a child under 14, former foster youth, and Native American or Alaska Native beneficiaries. Some states add exemptions for homelessness or substance use treatment. QDoes this apply to all Medicaid recipients? ANo. It only applies to the ACA expansion population - non-pregnant adults ages 19-64 who qualify through their state's Medicaid expansion. Children, pregnant women, seniors, and people on disability-based Medicaid are not affected. QHow often do I have to report my hours? AAt least every six months, though some states will require more frequent reporting. States are supposed to verify compliance using existing payroll or benefits data before requiring you to submit documentation yourself. QWhat happens if I don't report my hours on time? AYou risk losing Medicaid coverage, even if you actually worked enough hours - Georgia's experience shows that missed reporting deadlines, not failure to meet the hour threshold, are the leading cause of coverage loss under these programs. QWhich states already have Medicaid work requirements in effect? AGeorgia (since 2023), Nebraska (May 1, 2026), Montana and Arkansas (July 1, 2026, with Arkansas on a soft-implementation basis), and Iowa (December 1, 2026) - ahead of the January 1, 2027 national deadline. **Categories:** Taxes and Retirement --- ### [SSDI Back Pay: How It Works, How Much You Get, and When It Arrives](https://savingtoinvest.com/ssdi-back-pay-how-it-works/) **Published:** July 22, 2026 **Author:** Andy **Content:** ### Key Takeaways - SSDI has a mandatory 5-month waiting period from your disability onset date - no benefits are paid for those first five months, no exceptions. - SSA can pay up to 12 months of retroactive benefits before your application date, which combined with the waiting period means the farthest back your case can reach is 17 months before you applied. - SSDI back pay is almost always paid as a single lump sum, unlike SSI, which splits large past-due amounts into installments. - If you also receive SSI, the installment rule can still apply to that portion - SSA splits SSI back pay over $2,982 (3× the 2026 federal benefit rate) into up to three payments, six months apart. - A representative's fee is capped at $9,200 or 25% of your back pay, whichever is lower, for 2026 - and starting this year, that cap adjusts annually with COLA. - Most people receive their SSDI back pay within about 60 days of approval, though the exact timing varies by case. If Social Security approves your SSDI claim, don’t expect the money to land as a single simple number. Back pay calculations have more moving parts than most people expect, and the terminology alone — back pay, retroactive benefits, waiting period, onset date — trips people up before they even get to the math. Here’s how it actually works. Covered in this Article: [Toggle](#) - [Back Pay vs. Retroactive Benefits — They’re Not the Same Thing](#Back_Pay_vs_Retroactive_Benefits_%E2%80%94_Theyre_Not_the_Same_Thing) - [The Five-Month Waiting Period](#The_Five-Month_Waiting_Period) - [How Far Back Your Case Can Reach](#How_Far_Back_Your_Case_Can_Reach) - [How Back Pay Actually Gets Paid Out](#How_Back_Pay_Actually_Gets_Paid_Out) - [What a Representative Can Charge](#What_a_Representative_Can_Charge) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027](#Looking_Ahead_2027) ## Back Pay vs. Retroactive Benefits — They’re Not the Same Thing These two terms get used interchangeably, but SSA treats them as separate pieces. **Back pay** covers the period between your application date and your approval date — however long your claim took to process. **Retroactive benefits** cover the period before you applied, going back to your disability onset date, up to a 12-month limit. **Sarah**, 48, became unable to work in January 2025 but didn’t apply for SSDI until July 2025. Because she can prove her disability started earlier, she may qualify for retroactive benefits covering some of that six-month gap, on top of ordinary back pay for the time her application was pending. ## The Five-Month Waiting Period This is the part that catches people off guard: SSDI never pays benefits for the first five full calendar months after your Established Onset Date (EOD), no matter when you applied or how quickly SSA approved your case. Your EOD usually starts as the date you claimed you became disabled (your “alleged onset date”), and if SSA doesn’t dispute it, that becomes your official EOD. Your benefits then start accruing on the sixth full month after that date. ## How Far Back Your Case Can Reach Add the two limits together and you get the outer boundary of any SSDI claim: 12 months of retroactive benefits, plus the 5-month waiting period, means SSA will not recognize an onset date more than **17 months** before your application date — even if your disability genuinely started earlier. This is one reason disability attorneys push clients to apply as soon as possible after becoming unable to work, rather than waiting to see if things improve. Every month of delay before applying is a month of back pay you can’t ever fully recover. > *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) and I’ll flag it if SSA changes any of these thresholds.* ## How Back Pay Actually Gets Paid Out For SSDI (Title II) specifically, back pay is almost always issued as one lump sum, typically within about 60 days of your approval notice. This is a meaningful difference from SSI (Title XVI), which has a legal requirement to split large past-due amounts into installments. If you receive SSDI only, you shouldn’t expect your back pay to arrive in pieces. If you’re one of the many people who qualify for both SSDI and SSI at the same time — common for lower-income disabled workers — the installment rule can still apply to the SSI portion of your combined award. **James**, approved for both SSDI and concurrent SSI, is owed $9,000 in combined past-due benefits. Because the SSI share exceeds three times the 2026 federal benefit rate ($994 × 3 = $2,982), that portion gets split: two installments of $2,982 six months apart, then a final installment covering the remainder. His SSDI portion, by contrast, arrives as a normal lump sum. There’s an exception that can accelerate the installment schedule: if you have documented debt for housing, food, clothing, or medical needs, SSA can increase your first or second installment to cover it. ## What a Representative Can Charge If you used an attorney or non-attorney representative to help with your claim, their fee typically comes directly out of your back pay rather than your ongoing monthly checks. Under the standard fee agreement process, that fee is capped at **$9,200 or 25% of your back pay, whichever is lower**, for 2026. Starting this year, SSA reviews this cap annually alongside the COLA announcement, so it’s no longer a fixed number that sits untouched for years at a time the way it used to. Representatives also can’t bill you separately for the $123 service fee SSA charges in 2026 — that comes out of the fee itself. ## Common Issues to Watch Out For I hear about a handful of the same mix-ups whenever this topic comes up. **Assuming back pay includes the waiting-period months.** It never does — those five months are simply gone from the calculation, regardless of when you applied or how strong your case was. **Expecting SSDI to arrive in installments like SSI.** The installment rule is an SSI-specific requirement. Pure SSDI back pay is a lump sum unless there’s a representative payee situation or an outstanding debt to another federal agency. **Waiting too long to apply.** Because retroactive benefits cap out at 12 months, delaying your application by even a few months beyond that window means permanently losing that back pay — it’s not something you can appeal your way around later. **Not accounting for Medicare’s own waiting period.** SSDI recipients become eligible for Medicare 24 months after their date of entitlement (not their approval date) — a separate clock from the back-pay calculation that surprises a lot of new beneficiaries. **Assuming a lawyer’s fee applies to your monthly benefit too.** The standard fee agreement only touches past-due benefits (the back pay). Your ongoing monthly SSDI payment isn’t reduced by the representative’s fee. ## Looking Ahead: 2027 The federal benefit rate that sets the SSI installment threshold moves with each year’s COLA, so the $2,982 installment trigger will likely tick up again for 2027 — typically announced alongside the Social Security COLA in October. The attorney fee cap is now on the same annual review cycle, so expect SSA to publish whether the $9,200 cap moves for 2027 around the same time. Frequently Asked Questions QHow long does it take to get SSDI back pay after approval? AMost people receive their lump-sum back pay within about 60 days of their approval notice, though individual case processing times vary. QWhat is the SSDI five-month waiting period? ASSA doesn't pay SSDI benefits for the first five full calendar months after your established onset date. This waiting period applies to every SSDI claim with no exceptions. QHow far back can SSDI back pay go? AUp to 12 months of retroactive benefits before your application date, plus the 5-month waiting period, meaning the farthest back an onset date can be recognized is 17 months before you applied. QWill my SSDI back pay come in installments? AGenerally no. SSDI (Title II) back pay is typically paid as a single lump sum. The installment rule that splits large past-due payments applies to SSI (Title XVI), which matters if you receive both benefits concurrently. QHow much can a disability lawyer take from my back pay? AUnder the standard fee agreement, a representative's fee is capped at $9,200 or 25% of your back pay, whichever is lower, for 2026. This cap now adjusts annually with COLA. QWhat's the difference between back pay and retroactive benefits? ABack pay covers your application-to-approval period. Retroactive benefits cover the period before you applied, back to your disability onset date, up to a 12-month limit. QWhen does Medicare start for SSDI recipients? A24 months after your date of entitlement (not your approval date) - a separate waiting period from the back-pay calculation. **Categories:** Taxes and Retirement --- ### [Can Gig Workers Get Unemployment Benefits? What DoorDash, Uber, and Instacart Drivers Actually Qualify For in 2026](https://savingtoinvest.com/can-gig-workers-get-unemployment-benefits-what-doordash-uber-and-instacart-drive/) **Published:** August 27, 2026 **Author:** Andy **Content:** ### Key Takeaways - Regular unemployment insurance (UI) is built around traditional W-2 employment. Gig workers classified as independent contractors - DoorDash, Uber, Lyft, Instacart, and similar platforms - generally don't qualify for regular UI based on that gig income alone. - The temporary pandemic-era Pandemic Unemployment Assistance (PUA) program, which extended UI-style benefits to gig workers, ended in 2021 and has not been reinstated. - The U.S. Department of Labor (DOL) proposed rescinding the Biden-era independent-contractor classification test in February 2026, reverting to a more employer-friendly standard for determining who counts as an employee versus a contractor. - Whether a gig worker is genuinely misclassified as a contractor (and should have been treated as an employee) is a live, evolving legal question that varies significantly by state. - If you have a mix of W-2 and gig income, your regular UI eligibility is based on your W-2 wages, not your 1099 gig earnings - but you generally still have to report gig income on your weekly claims. - Reporting gig income incorrectly, or not reporting it at all, is one of the most common reasons gig-adjacent UI claims get flagged, delayed, or denied. If you drive for DoorDash, Uber, Lyft, or Instacart and lose other income, there’s a good chance a straightforward unemployment claim based on that gig work alone will get denied. That’s not a glitch in the system — it’s how unemployment insurance is built. Regular state unemployment programs are designed around traditional employment, where an employer pays into the unemployment insurance system on your behalf. Gig platforms generally don’t do that for workers they classify as independent contractors, which is most of them. Here’s how gig income actually interacts with unemployment eligibility right now, what changed with the pandemic-era gig worker benefits, and a federal rule change worth watching in 2026. Covered in this Article: [Toggle](#) - [Why Gig Work Usually Doesn’t Qualify You for UI](#Why_Gig_Work_Usually_Doesnt_Qualify_You_for_UI) - [What Happened to Pandemic-Era Gig Worker Benefits](#What_Happened_to_Pandemic-Era_Gig_Worker_Benefits) - [The Rule Change Worth Watching: DOL’s Independent Contractor Test](#The_Rule_Change_Worth_Watching_DOLs_Independent_Contractor_Test) - [If You Have Both a W-2 Job and Gig Work](#If_You_Have_Both_a_W-2_Job_and_Gig_Work) - [What to Do If You’re a Gig Worker Considering an Unemployment Claim](#What_to_Do_If_Youre_a_Gig_Worker_Considering_an_Unemployment_Claim) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: What to Watch](#Looking_Ahead_What_to_Watch) ## Why Gig Work Usually Doesn’t Qualify You for UI Unemployment insurance is funded by taxes employers pay on W-2 wages. When you’re classified as an independent contractor — which is how DoorDash, Uber, Lyft, Instacart, and most gig platforms classify their workers — no employer has been paying into the UI system on your behalf for that income. Without those contributions tied to your work, most state UI programs have no wage record to base a claim on. This is a real, current issue, not a historical one. A Pennsylvania DoorDash driver who filed for regular unemployment after losing a separate job was denied specifically because gig platform income doesn’t establish UI-covered wages under the state’s rules — a pattern that shows up across states, not just one. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) and I’ll update this page if federal or state rules around gig worker classification and UI eligibility shift further.* ## What Happened to Pandemic-Era Gig Worker Benefits During the COVID-19 pandemic, the CARES Act created Pandemic Unemployment Assistance (PUA), which for the first time extended unemployment-style benefits to gig workers, independent contractors, and the self-employed — groups regular UI has never covered. PUA ended for all claims by September 2021, and no federal program has replaced it since. If you’re a gig worker today, PUA-style eligibility based purely on your 1099 gig income isn’t available — regular state UI rules, built around W-2 employment, are what apply. ## The Rule Change Worth Watching: DOL’s Independent Contractor Test In February 2026, the U.S. Department of Labor proposed rescinding the Biden-era independent contractor classification rule finalized in 2024, and reverting to an earlier, more employer-friendly standard for determining who legally counts as an employee versus a contractor under federal labor law. This matters for unemployment eligibility indirectly but significantly. Whether a gig worker is genuinely an independent contractor or has been misclassified (and should legally have been treated as an employee) affects whether that person could have a valid claim for UI benefits, back wages, or other employment protections tied to employee status. A stricter or looser federal classification standard shifts how that argument plays out in individual cases and disputes, even though state unemployment agencies apply their own classification tests, which don’t always mirror the federal DOL standard exactly. As of this writing, the proposed rule hasn’t been finalized, and its practical effect on unemployment claims specifically will likely take time to show up in state-level decisions. ## If You Have Both a W-2 Job and Gig Work Many gig workers also have separate W-2 employment, and this is where things get more workable. If you lose your W-2 job, your unemployment eligibility and benefit amount are based on your W-2 wages, not your gig income — the gig work itself doesn’t disqualify you. What trips people up is reporting. Most states require you to report all income, including gig earnings, during your weekly or biweekly certifications, even while collecting UI based on a separate W-2 layoff. Failing to report gig income, or reporting it incorrectly, is one of the most common reasons these claims get flagged for review or delayed. **Example — Marcus** was laid off from his full-time warehouse job and also drives for Uber Eats a few evenings a week. Because his UI claim is based on his W-2 warehouse wages, he qualifies for regular unemployment — but he has to report his Uber Eats earnings on every weekly certification, and depending on his state’s partial-benefit formula, those gig earnings can reduce his weekly UI payment for that week. My guide to [collecting unemployment while working part-time](https://savingtoinvest.com/can-i-get-unemployment-working-part-time-partial-weekly-unemployment-benefit-rules-by-state/) covers exactly how those partial-benefit formulas work state by state. **Example — Angela** works exclusively as a DoorDash driver with no W-2 income in the past 18 months. When her delivery income dropped sharply, she applied for regular state unemployment and was denied — she had no W-2 wage record for the agency to base a claim on, and with PUA no longer available, there’s currently no unemployment-style program that covers gig income on its own. ## What to Do If You’re a Gig Worker Considering an Unemployment Claim If you have any W-2 employment history in the last 12–18 months (the “base period” most states use), start there — a partial base period of W-2 wages can sometimes support a claim even if most of your recent income was gig work. For the state-by-state benefit amounts and qualifying wage rules that would apply if you do have W-2 wages, see my [maximum weekly unemployment benefits by state](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/) guide and the companion [state qualifying-wage table](https://savingtoinvest.com/updated-2026-to-2027-state-unemployment-benefits-and-wage-table/). If you believe you’ve been misclassified as an independent contractor when you’re functionally treated like an employee — a set schedule, required equipment, exclusivity requirements, or similar control by the platform — that’s worth raising directly with your state labor department, since misclassification disputes are handled at the state level regardless of what happens with the federal DOL rule. Rideshare and delivery drivers should also know that mileage is usually the single biggest deduction available on gig income — see my [standard mileage rate guide](https://savingtoinvest.com/standard-mileage-rate-tax-irs/) for the current rate and how to track it. And if tips make up part of your gig income, the [No Tax on Tips deduction](https://savingtoinvest.com/no-tax-on-tips-2026-your-complete-guide-to-saving-thousands-with-real-examples/) may apply depending on your total earnings. ## Common Issues to Watch Out For I hear the same handful of misunderstandings whenever gig work and unemployment come up together, so here’s what trips people up most. **Assuming gig income alone will support a UI claim.** Without W-2 wages in your base period, most states have no wage record to base a regular unemployment claim on — gig platforms generally don’t pay UI taxes on independent contractor earnings. **Not reporting gig income while collecting UI from a separate W-2 layoff.** This is one of the most common triggers for a claim getting flagged, delayed, or investigated for overpayment — report every dollar of gig income on your weekly certification, even if it feels like a “side” activity unrelated to your main claim. **Confusing today’s rules with pandemic-era PUA eligibility.** PUA extended benefits to gig workers and the self-employed, but it ended in September 2021 and hasn’t returned — don’t assume gig-based eligibility that applied in 2020–2021 still applies now. **Assuming a DOL classification rule change immediately changes your state UI eligibility.** Federal labor classification rules and state unemployment eligibility rules are related but separate systems — a federal rule shift doesn’t automatically or immediately change how your specific state agency evaluates a claim. **Giving up after a first denial without checking your actual base period.** If you had any W-2 employment in the past 12–18 months, even part-time or brief, it’s worth confirming exactly how your state calculates the base period before assuming gig work alone sank your claim. ## Looking Ahead: What to Watch The DOL’s proposed rule change on independent contractor classification is still working through the federal rulemaking process as of this writing, and it’s worth watching whether it’s finalized in anything close to its proposed form, given how much litigation and public comment this exact issue has generated in past rulemaking cycles. I’ll update this page once DOL finalizes its position. It’s also worth watching individual state legislatures, several of which have periodically floated bills to extend some form of portable benefits or unemployment-style protection to gig workers specifically — none have created anything resembling PUA-style coverage as of 2026, but the idea resurfaces in state policy discussions fairly regularly. If gig work is your main income and you’re weighing it against a traditional job offer, my [minimum wage by state guide](https://savingtoinvest.com/federal-and-state-minimum-wage-increases/) is a useful baseline for comparing guaranteed W-2 pay against variable gig earnings. Frequently Asked Questions QCan DoorDash, Uber, or Instacart drivers get unemployment benefits? AGenerally not based on that gig income alone. Regular state unemployment insurance is funded by employer taxes on W-2 wages, and gig platforms typically classify drivers as independent contractors, so there's usually no wage record to support a UI claim from gig earnings by themselves. QWhat happened to unemployment benefits for gig workers during COVID? AThe CARES Act created Pandemic Unemployment Assistance (PUA), which extended unemployment-style benefits to gig workers and the self-employed for the first time. PUA ended for all claims by September 2021 and has not been replaced by any federal program since. QWhat is the DOL's 2026 independent contractor rule change? AIn February 2026, the Department of Labor proposed rescinding the 2024 independent contractor classification rule and reverting to an earlier, more employer-friendly standard. It affects how workers are classified as employees versus contractors under federal labor law, which can influence misclassification disputes tied to UI eligibility, though state agencies apply their own separate classification tests. QIf I have a W-2 job and also do gig work, does the gig work disqualify me from unemployment? ANo. Your eligibility and benefit amount are based on your W-2 wages. However, most states require you to report gig income on your weekly certifications even while collecting UI from a separate W-2 layoff, and that income can reduce your weekly benefit depending on your state's partial-benefit rules. QWhat happens if I don't report my gig income while collecting unemployment? AIt's one of the most common reasons a claim gets flagged for review, delayed, or investigated for overpayment. Report all gig earnings on every weekly or biweekly certification, even if the amount seems small. QHow do I know if I've been misclassified as an independent contractor? ACommon signs include a set schedule, required equipment or exclusivity terms, and a level of control by the platform that resembles traditional employment. Misclassification disputes are evaluated by your state labor department using that state's specific test, separate from federal DOL rules. QIs there any current program like PUA for gig workers? ANo. As of 2026, no federal program extends unemployment-style benefits to gig workers based purely on 1099 income. A handful of state legislatures have discussed portable-benefits proposals for gig workers, but none currently provide PUA-style UI coverage. **Categories:** Taxes and Retirement **Tags:** taxes, unemployment --- ### [How Much Can You Put in Your 401(k)? 2026–2027 Contribution Limits, Match, and Catch-Up Rules](https://savingtoinvest.com/maximum-employee-and-employer-401k-contribution-limits-and-catch-up-amounts/) **Published:** November 30, 2011 **Author:** Andy **Content:** ### Key Takeaways - The IRS set the 2026 employee 401(k) contribution limit at $24,500 - up $1,000 from $23,500 in 2025. - Workers 50+ can add an $8,000 catch-up for a total of $32,500; those 60-63 get a 'super catch-up' bringing the total to $35,750. - Employer matching contributions don't count toward your personal $24,500 limit, but they do count toward the combined $72,000 employee-plus-employer cap. - This page covers the straightforward 401(k) case - if you have a 403(b), governmental 457(b), or TSP instead (or in addition), the base numbers mostly match but a few rules differ. - Over-contributing when switching jobs mid-year is the single most common mistake I hear about - both employers share the same annual cap, and neither plan administrator can see what you put into the other. - Automatic enrollment defaults are often too low (3%) to meaningfully build retirement savings or capture your full employer match. The IRS set the 2026 employee 401(k) contribution limit at **$24,500** — up $1,000 from $23,500 in 2025. If you’re 50 or older, you can add another $8,000 in catch-up contributions for a total of $32,500. And if you’re between 60 and 63, a SECURE 2.0 super catch-up provision lets you contribute up to **$35,750** this year. This page walks through the numbers, the mechanics of employer match and vesting, and the mistakes I see readers make most often. If your employer offers a 403(b), governmental 457(b), or TSP instead of a standard 401(k), the base limits mostly line up but a few rules genuinely differ — see my [401(k) vs. 403(b) vs. 457(b) vs. TSP comparison](https://savingtoinvest.com/taking-advantage-of-new-401k/) for those distinctions. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates.* Covered in this Article: [Toggle](#) - [2026 401(k) Contribution Limits at a Glance](#2026_401k_Contribution_Limits_at_a_Glance) - [What I’m Watching for 2027](#What_Im_Watching_for_2027) - [Employee Contribution Limits](#Employee_Contribution_Limits) - [Employer Match and Combined Limits](#Employer_Match_and_Combined_Limits) - [Catch-Up Contributions (Age 50 and Over)](#Catch-Up_Contributions_Age_50_and_Over) - [Compensation Limits and HCE Thresholds](#Compensation_Limits_and_HCE_Thresholds) - [Real-World Examples](#Real-World_Examples) - [401(k) Automatic Enrollment](#401k_Automatic_Enrollment) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## 2026 401(k) Contribution Limits at a Glance I get a lot of questions about 401(k) contribution limits each year, especially around how catch-up contributions work and what the employer match rules are. Here’s the full breakdown for 2026. There are two main types of 401(k) contributions: your own **elective deferral** (what you put in from your paycheck) and your **employer’s matching contribution**. Each has its own limit, and there’s an overall combined cap that covers both. The table below shows how 2026 compares to recent years: YearEmployee MaxMax All ContributionsCatch-Up (age 50+)Super Catch-Up (age 60–63)2026$24,500$72,000$8,000$11,2502025$23,500$70,000$7,500$11,2502024$23,000$69,000$7,500N/A2023$22,500$66,000$7,500N/A2022$20,500$61,000$6,500N/A2021$19,500$58,000$6,500N/A Note: The super catch-up column shows the **total** catch-up limit for ages 60–63, not the additional amount above the regular catch-up. So in 2026, workers in that age range can contribute up to $24,500 + $11,250 = **$35,750** total. Source: [IRS Retirement Topics — 401(k) and profit-sharing plan contribution limits](https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-401k-and-profit-sharing-plan-contribution-limits). For the full combined picture including IRA limits, see my [401(k)/IRA/Roth IRA hub](https://savingtoinvest.com/401k-ira-and-roth-ira-contribution-and-income-limits/). ### What I’m Watching for 2027 The IRS typically releases the following year’s contribution limits in late October or early November — the exact date this year is around November 1, 2026. Rather than guess, the most useful early read comes from actuarial firm Milliman, which tracks IRS rounding rules and current inflation data to forecast these numbers each year. Milliman’s latest projection has the 2027 employee deferral limit rising **$500 to $25,000**, the regular 50+ catch-up holding steady at **$8,000**, and the age 60–63 super catch-up rising **$500 to $11,750**. The combined employee-plus-employer cap is projected to rise **$3,000 to $75,000**. These are forecasts, not official numbers, and they can still shift if inflation data between now and September 2026 comes in higher or lower than expected. I’ll update this table the moment the IRS makes its announcement. ## Employee Contribution Limits The $24,500 employee limit applies to traditional (pre-tax) and Roth 401(k) contributions combined. You can split your deferral between the two however you like — but the total across both can’t exceed $24,500. This limit applies across every 401(k) and 403(b) plan you contribute to in a calendar year, combined. If you switch jobs mid-year and contribute to two plans, both contributions count toward the same annual cap — more on that in Common Issues below. If your income is more modest, contributing to your 401(k) can also qualify you for the Saver’s Credit — a separate tax credit worth up to $1,000 ($2,000 if married filing jointly) that comes on top of your regular tax savings. See the [IRS Saver’s Credit page](https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-savers-credit) or my [Saver’s Credit income limits guide](https://savingtoinvest.com/savers-tax-credit-and-income-limits-to-help-workers-save-for-retirement/) for the current income thresholds. ## Employer Match and Combined Limits Employer matching contributions do **not** count toward your personal $24,500 employee limit — but they do count toward the overall combined limit. For 2026, the combined ceiling (employee + employer contributions) is **$72,000**, or 100% of your compensation if that’s lower. Most employers match somewhere between 3% and 6% of employee contributions, so very few people actually approach the combined cap. Still, if you’re self-employed with a solo 401(k), you’re both the employee and employer — which makes the $72,000 limit very relevant. If you’re weighing a solo 401(k) against other self-employed options, see my [SEP-IRA rules and contribution limits](https://savingtoinvest.com/sep-ira-rules-and-contribution-limits/) guide for a side-by-side comparison. For what it’s worth, I always make sure I’m contributing at least enough to capture the full employer match before directing savings anywhere else. It’s the closest thing to a guaranteed return you’ll find — and it’s the first thing I’d look at if you’re trying to decide where to start. Keep in mind that employer contributions often come with a **vesting schedule**. Your company may match your contributions immediately, or they may require 2–4 years of service before that money is fully yours. ## Catch-Up Contributions (Age 50 and Over) If you’re 50 or older by December 31, 2026, you can make catch-up contributions on top of the standard limit. For 2026, the catch-up amount is **$8,000**, up from $7,500 in 2025. That brings your total to $32,500. The SECURE 2.0 Act also introduced a higher **super catch-up** specifically for ages 60–63 — $11,250 for 2026, bringing that group’s total to $35,750. And starting in 2026, workers 50+ who earned over $150,000 from their employer in 2025 must make catch-up contributions as Roth rather than pre-tax. I cover the super catch-up mechanics, the Roth catch-up mandate for high earners, and every other catch-up scenario across plan types in much more depth in my [dedicated catch-up contribution guide](https://savingtoinvest.com/when-can-i-make-catch-up-contributions-to-401k-ira-403b-and-simple-ira-retirement-plans/) — that’s the page to check if you want the full rules rather than the summary here. ## Compensation Limits and HCE Thresholds Not all of your salary counts for contribution-calculation purposes. The IRS caps the amount of compensation that can be considered, and that cap increased in 2026: YearAnnual Comp LimitHighly Compensated Employee (HCE) Threshold2026$360,000$165,0002025$350,000$160,0002024$345,000$155,0002023$330,000$150,0002022$305,000$135,000 If you’re classified as a **highly compensated employee** (earned over $165,000 in the prior year), your 401(k) deferral rate may be restricted based on how much lower-paid employees contribute. This is the ADP/ACP non-discrimination test — it exists to prevent plans from disproportionately favoring highly paid workers. ## Real-World Examples **Example 1 — The super catch-up in practice:** Sarah is 62 and earns $120,000. She’s been contributing $20,000 to her 401(k) all year and is wondering if she should bump it up. Under the 2026 rules, she can contribute up to $35,750 total ($24,500 employee max + $11,250 super catch-up). She bumps her contributions to max them out before year-end. Her employer matches 4% of salary — $4,800 — which doesn’t count against her $35,750 employee limit but adds to the combined $72,000 cap. Total going in: $40,550. **Example 2 — Hitting the HCE wall mid-year:** Mark earned $175,000 last year, making him a highly compensated employee in 2026. His company’s lower-paid workers are contributing an average of 5% of their salary. Under ADP testing rules, Mark’s deferral rate may be capped close to that same percentage — limiting him to roughly $8,750 rather than the full $24,500. In March, his plan administrator notifies him he’s over the limit. Mark gets an excess contribution refund, which is then taxable. The lesson: if you’re an HCE, check with HR early in the year about what your effective cap will be before you set your deferral rate. *Things can change quickly when the IRS adjusts for inflation — I’ll update this page when there are new announcements. [Subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/).* ## 401(k) Automatic Enrollment Under legislation passed in recent years, employers can now automatically enroll eligible employees in 401(k) plans at a default contribution rate — typically 3% to 6% of salary. You can always opt out or adjust your rate, but auto-enrollment has been shown to meaningfully improve retirement savings rates, especially for younger workers who might otherwise procrastinate. If your employer does an **enrollment sweep** at the start of the year, it may also nudge participants who are below the sweep rate to contribute more — which also makes you eligible for more employer matching (free money). ## Common Issues to Watch Out For I get a lot of questions about 401(k) edge cases — here are the ones that trip people up most often. **Over-contributing when switching jobs.** If you leave a job mid-year and join a new employer, both 401(k) plans share the same $24,500 annual cap. Your new employer’s plan doesn’t know what you contributed to your old one. It’s on you to track this. **Missing the same-year correction window.** If your plan catches the excess and processes the return before the tax deadline, you’re generally fine. But if the correction slips past that window — the plan is slow, or you catch it late — the excess isn’t automatically reflected in a corrected W-2. You then have to manually add the excess amount back to your taxable income when you file, and you’ll effectively be taxed on it twice: once now, and again when it’s eventually distributed. See the [IRS’s own guidance on excess elective deferrals](https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-what-happens-when-an-employee-has-elective-deferrals-in-excess-of-the-limits) for exactly how the correction and reporting work. **Leaving employer match on the table.** This is the one I see come up in reader emails all the time. If your employer matches 4% of your salary and you’re contributing 2%, you’re giving away free money. Always contribute at least enough to capture the full match before directing savings elsewhere. **Not accounting for the vesting schedule.** Your contributions are always yours. But employer matching contributions often vest over 2–4 years. If you leave after 18 months, you might walk away with only a fraction of what your employer put in — or none of it. Worth checking your plan documents before making any job change. **Traditional vs Roth 401(k) — the choice most people ignore.** Many plans offer both. The traditional version reduces your taxable income now; the Roth version means tax-free withdrawals in retirement. If you expect your tax rate to be higher in retirement than it is today, Roth usually wins. I tend to think younger workers in lower tax brackets benefit most from the Roth option, and I walk through the same tradeoff for IRAs in my [Traditional vs Roth IRA breakdown](https://savingtoinvest.com/traditional-ira-versus-roth-ira-contribution-and-phase-out-income-limits/) if you’re weighing both accounts together. **Auto-enrollment at a rate that’s too low.** If your employer auto-enrolled you at 3%, you might assume you’re set. But 3% often won’t get you to a comfortable retirement, and you may be missing out on additional matching. Log in and check your deferral rate — it takes two minutes and could matter a lot over 20 years. Frequently Asked Questions QWhat is the 401(k) contribution limit for 2026? AThe employee contribution limit is $24,500 for 2026, up from $23,500 in 2025. The combined employee and employer limit is $72,000. QHow much extra can I contribute to my 401(k) if I'm over 50? AIf you're 50 or older by the end of 2026, you can make an additional $8,000 catch-up contribution, bringing your total to $32,500. Workers 60-63 get a super catch-up of $11,250 instead, for a total of $35,750. QDoes my employer's 401(k) match count toward my contribution limit? ANo - employer matching contributions don't count toward your personal $24,500 employee limit. They do count toward the combined limit of $72,000 (employee + employer combined). QCan I contribute to a 401(k) and an IRA in the same year? AYes. 401(k) and IRA contribution limits are separate. You can max out your 401(k) and still contribute up to $7,500 to a Roth or Traditional IRA in 2026. Income limits may affect your ability to deduct a Traditional IRA contribution if you're covered by a workplace plan. QWhat happens if I contribute too much to my 401(k)? AExcess contributions are taxable in the year contributed and again when withdrawn if not corrected in time, resulting in double taxation. If your plan doesn't process the correction before you file, you have to manually add the excess back to your taxable income on your return, since your W-2 won't reflect it. Talk to your plan administrator as soon as you suspect you've over-contributed. QDo 403(b), 457(b), or TSP plans use the same $24,500 limit as a 401(k)? AMostly yes, but not entirely. 401(k), 403(b), and TSP all share one combined $24,500 limit, while governmental 457(b) plans get a separate limit on top. See my full plan-type comparison for the details, since the differences matter if you have more than one type. QWhat is the projected 401(k) contribution limit for 2027? AMilliman's latest forecast projects the 2027 employee deferral limit at $25,000, the regular 50+ catch-up holding at $8,000, and the age 60-63 super catch-up rising to $11,750. These are unofficial projections - the IRS typically confirms actual figures around November 1, 2026. **Categories:** Taxes and Retirement **Tags:** 401K, 403b, catch-up, Contribution Limits, retirement, retirement Plans --- ### [IRS Notices CP11, CP12, CP13 and CP14 — Refund Adjustments, Balance-Due Letters, and Your 60-Day Rights in 2026](https://savingtoinvest.com/irs-tax-notices-for-adjustments-due-to-tax-liability-or-refund-calculation-errors-cp11-cp12-cp13-and-cp14/) **Published:** June 7, 2022 **Author:** Andy **Content:** ### Key Takeaways - CP11 means you owe more, CP12 means your refund changed, CP13 means the correction netted to zero, and CP14 means you have an unpaid balance due. - You have 60 days from the notice date to challenge a math-error adjustment and force the IRS into normal deficiency procedures that preserve appeal rights. - CP14 notices give you about 21 days to pay or set up a payment plan before penalties escalate; they peak every May and June. - A corrected CP12 refund typically arrives in 4-6 weeks with no action needed if you agree with the change. - New rules taking effect in late 2026 require the IRS to state the specific error and your 60-day window clearly on these notices. If the IRS finds a calculation error on your return, it doesn’t audit you — it fixes the math itself and mails you a notice in the CP11–CP14 series telling you what changed. Depending on which one you get, your refund went up, went down, disappeared, or turned into a bill. These “math error” notices matter more than they look, because they come with a **60-day window** to challenge the change — and a new law taking effect in late 2026 requires the IRS to explain both the error and that deadline more clearly than it has in the past. Covered in this Article: [Toggle](#) - [The Four Notices, Decoded](#The_Four_Notices_Decoded) - [Your 60-Day Right to Challenge](#Your_60-Day_Right_to_Challenge) - [If You Get a CP14: Payment Options](#If_You_Get_a_CP14_Payment_Options) - [Looking Ahead: 2027](#Looking_Ahead_2027) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## The Four Notices, Decoded **CP11 — you now owe money.** The IRS corrected a miscalculation and the change means you owe additional tax (or your refund couldn’t cover the adjustment). **CP12 — your refund changed.** The IRS corrected one or more mistakes and you’re either now due a refund or your original refund amount changed. If you’re owed money, an adjusted refund typically arrives in **4 to 6 weeks** — no action needed unless you disagree. **CP13 — a wash.** The IRS corrected the return; you’re not due a refund and you don’t owe. Account balance: zero. **CP14 — you have an unpaid balance.** This is the most common IRS notice, peaking in May and June since the IRS must send it within 60 days of assessing a liability. You generally have **21 days** from the notice to pay before failure-to-pay penalties and interest escalate. ## Your 60-Day Right to Challenge Here’s the piece too many people miss: a math-error adjustment isn’t final. You have **60 days** from the notice date to dispute the change and ask the IRS to reverse it. If you request abatement within that window, the IRS must reverse the adjustment and follow normal deficiency procedures (which preserve your appeal and Tax Court rights) if it still wants to make the change. Miss the 60 days, and your options shrink dramatically — you’re into paying-then-claiming-refund territory. This is a different clock from other notices, which is why I always tell readers to [check which notice they actually have](https://savingtoinvest.com/how-long-do-i-have-to-wait-after-an-irs-notice-to-get-my-tax-refund/) before assuming a deadline. Starting with notices issued on or after **December 1, 2026**, a new law — the **IRS Math and Taxpayer Help Act** — forces the IRS to spell all of this out. Every CP11/CP12-type notice will have to include a plain-language description of the specific error, the exact Form 1040 line it affected, the Internal Revenue Code (IRC) section behind the adjustment, and an itemized calculation showing exactly how the IRS got from your original number to the corrected one. The 60-day response deadline also has to appear in bold, 14-point type near your address at the top of the notice, instead of buried in a paragraph. None of this changes the IRS’s math-error authority or the 60-day clock itself — it just means you shouldn’t have to guess, call, or hire someone to translate the notice for you once the new format takes effect. **Priya’s example:** Priya got a CP12 reducing her refund by $840 — the IRS said her Child Tax Credit calculation was off. She checked her return, confirmed her credit was correct (the IRS had mismatched a dependent SSN), and called the number on the notice within the 60-day window. The adjustment was reversed and her full refund arrived about six weeks later. ## If You Get a CP14: Payment Options If the bill is right, pay by the due date via [IRS Direct Pay](https://www.irs.gov/payments) — same-day, free, no account needed. If you can’t pay in full, don’t ignore the notice; set up a payment plan instead. Short-term plans (up to 180 days) are free to set up, and long-term installment agreements are available online for balances under $50,000. Penalties for not filing are roughly 10x larger than penalties for not paying — and the failure-to-pay penalty (0.5%/month) plus interest keeps running until the balance clears. I cover the full penalty math in my [late filing and payment penalties post](https://savingtoinvest.com/what-happens-if-i-file-my-taxes-late-irs-penalty-and-getting-your-refund/). One more 2026 note: check the math on any CP14 before paying. The IRS has acknowledged erroneous CP14 batches in past years (including to filers in disaster-relief areas with extended deadlines), and this season’s One Big Beautiful Bill Act changes — new deductions for tips, overtime, and seniors — have produced more first-year calculation mismatches than usual on both sides. ## Looking Ahead: 2027 Two things I’m watching for next season. First, the clearer math-error notice requirements fully kick in — CP11/CP12 letters issued during the 2027 filing season should finally state exactly what was changed and your 60-day right on the face of the notice. Second, OBBBA’s second year. With withholding tables and software fully caught up on the new deductions, I’d expect fewer credit-calculation mismatches and therefore somewhat fewer CP12s — but CP14 volume will stay high as always in May-June. I’ll update this page as the new notice formats appear. ## Common Issues to Watch Out For **Confusing CP11/CP12 with a CP2000 notice.** A CP2000 looks similar and also gets called a “math error” colloquially, but it’s actually an underreporter notice comparing your return to income reported by employers or other third parties — it isn’t a true math-error correction and follows a different dispute process. Check the notice number in the top corner before assuming which rules apply. - **Assuming the IRS is right.** Adjustment notices are frequently correct — but mismatched dependent SSNs and first-year law changes produce real errors. Verify against your filed return before accepting or paying. - **Missing the 60-day clock.** Your right to an easy reversal expires 60 days from the notice date; after that, the path is much harder. - **Ignoring a CP14 because you disagree.** Penalties and interest run while you stew. Dispute it actively — or pay and claim a refund — but don’t just sit on it. - **Amending in response to an adjustment notice.** Don’t file a 1040-X to argue with a math-error correction; use the notice’s dispute process instead. - **Paying a CP14 twice.** If you paid recently, the notice may have crossed your payment in the mail — check your IRS online account balance before paying again. Frequently Asked Questions QWhat's the difference between CP11, CP12, CP13, and CP14 notices? AAll four report IRS corrections to your return. CP11 means you now owe money, CP12 means your refund amount changed, CP13 means the change netted to zero, and CP14 is a bill for an unpaid balance. QCan I dispute an IRS math-error adjustment? AYes - you have 60 days from the notice date to request abatement. Within that window the IRS must reverse the adjustment and use normal deficiency procedures if it still wants to make the change, preserving your appeal rights. QHow long until I get my refund after a CP12? AIf the correction results in a refund and you agree with it, expect payment in about 4 to 6 weeks from the notice date with no action needed. QHow long do I have to pay a CP14? AGenerally 21 days from the notice date. If you can't pay in full, set up an IRS payment plan - short-term plans up to 180 days are free to establish. QWhy did I get a CP14 in May or June? AThe IRS must send CP14 notices within 60 days of assessing a tax liability, so filers with balances from the April deadline get them in May and June - it's the agency's highest-volume notice period. QAre these notices ever wrong? AYes. Mismatched dependent SSNs, disaster-deadline errors, and first-year law changes (like this season's One Big Beautiful Bill Act deductions) have all produced erroneous adjustments. Always verify against your filed return before paying. **Categories:** Taxes and Retirement --- ### [Return Accepted But No Refund? IRS Identity Verification (5071C) Is the Likely Reason in 2026](https://savingtoinvest.com/i-filed-my-tax-return-it-was-accepted-yet-i-still-havent-seen-any-sign-of-my-refund-irs-identity-review-and-validation-the-likely-reason/) **Published:** February 12, 2016 **Author:** Andy **Content:** ### Key Takeaways - If your return was accepted but WMR shows no progress past 21 days, an IRS identity verification hold (5071C/CP5071 letter) is the most likely cause in 2026. - Processing stops completely until you verify - the return sits in the Taxpayer Protection Program queue, not the normal pipeline. - Verify online through the IRS/ID.me the day the letter arrives; it's the fastest path by far given TPP phone lines answered only ~19% of calls last season. - After successful verification, official guidance is up to 9 weeks for your refund; data-mismatch cases have run up to 60 days longer. - Check your IRS online account for the notice before the paper letter arrives, and confirm your refund via transcript code 846. You filed on time, got the “return accepted” confirmation, and settled in for the standard three-week wait. It’s now been well past 21 days, Where’s My Refund (WMR) hasn’t budged, and you’re wondering where your money is. In 2026, the single most common reason for this exact pattern is an identity verification hold. The IRS has leaned harder on its fraud and data-matching filters this season, and when your return trips one, processing stops entirely until you prove you’re really you. Covered in this Article: [Toggle](#) - [How Identity Verification Holds Work](#How_Identity_Verification_Holds_Work) - [How to Know Your Return Is in Identity Review](#How_to_Know_Your_Return_Is_in_Identity_Review) - [How to Verify Your Identity — Fastest to Slowest](#How_to_Verify_Your_Identity_%E2%80%94_Fastest_to_Slowest) - [When Will I Get My Refund After Verifying?](#When_Will_I_Get_My_Refund_After_Verifying) - [Looking Ahead: 2027 Filing Season](#Looking_Ahead_2027_Filing_Season) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## How Identity Verification Holds Work When the IRS’s Taxpayer Protection Program (TPP) flags a return, it suspends processing and mails a verification letter — most commonly a **5071C** (or the related CP5071 series). Nothing happens to your return until you complete the verification it asks for. To be clear on one thing readers ask me constantly: getting a 5071C doesn’t mean the IRS found identity theft on your account. It means something about the return looked unusual to the filters — a new address, income that doesn’t match third-party records yet, a first-time filing pattern. Verification is how you clear the flag. If you want to shore up your SSN’s broader security beyond this one flagged return, see my guide to [protecting your Social Security number from identity theft](https://savingtoinvest.com/hacking-social-security-numbers-and-how/). The scale of this is bigger than most people realize. Per the [National Taxpayer Advocate’s mid-year report to Congress](https://www.taxpayeradvocate.irs.gov/reports/) (June 24, 2026), the TPP phone line answered only about 19% of calls last season — identity verification is now one of the biggest single drivers of multi-month refund delays. ## How to Know Your Return Is in Identity Review If you haven’t received a letter yet, there are two quick checks. Log into your [IRS online account](https://www.irs.gov/payments/online-account-for-individuals) and look under Notices and Letters — verification requests show up there, often before the mail arrives. Or pull your [tax transcript](https://savingtoinvest.com/using-your-irs-transcript-to-get-your-tax-return-and-refund-processing-status-and-key-dates/): a return that’s been suspended for verification typically shows no processing codes advancing, or a 971 notice-issued code. If your transcript shows “no return filed” weeks after e-file acceptance, that’s the TPP suspension pattern. ## How to Verify Your Identity — Fastest to Slowest **Online (fastest).** The 5071C letter directs you to the IRS identity verification service, where you verify through ID.me with a photo ID. Most filers can finish in 15–20 minutes. Do this the day you get the letter. **By phone.** The letter includes the TPP number. Given the 19% answer rate, treat this as the backup — call at opening time (7am local) early in the week if you must. **In person.** If online verification fails, you’ll be directed to schedule a Taxpayer Assistance Center appointment. Bring the letter, the tax return in question, and two forms of ID. **Jordan’s case:** Jordan moved states mid-year and filed in February from his new address with a new employer. Classic filter trip. His 5071C arrived in mid-March; he verified online that afternoon and saw his transcript update about three weeks later, with the refund landing five weeks after verification. ## When Will I Get My Refund After Verifying? The IRS’s standard guidance is up to **9 weeks** after successful verification. In practice this season, most readers who verified online reported movement in 3–6 weeks, but returns with data mismatches against W-2s or 1099s have faced holds of up to 60 days even after successful verification. Once processing resumes, watch for [code 846 (refund issued) on your transcript](https://savingtoinvest.com/code-846-refund-issued-on-your-irs-tax-transcript-what-it-means-for-your-direct-deposit-or-paper-check-refund-payment/) — that’s the real confirmation, with WMR usually updating a day or two behind it. If you’re past the 9-week mark with no movement and it’s causing genuine financial hardship, the [Taxpayer Advocate Service](https://savingtoinvest.com/contact-a-tax-advocate-to-help-get-your-refund-released-from-the-irs/) can intervene — verification delays are now the most common case type they handle. ## Looking Ahead: 2027 Filing Season I expect identity verification volume to keep climbing. The IRS is matching returns against third-party data more aggressively — W-2s, 1099s, and the newer Form 1099-DA for digital assets — and with the agency’s workforce down roughly 27% from recent peaks, flagged returns will keep outpacing the staff available to clear them. Two things I’m watching for next season: whether the TPP phone answer rate improves from 19% (the Taxpayer Advocate has made this a headline recommendation), and whether the IRS expands same-day online verification to more letter types. Either would meaningfully shorten these holds. I’ll update this page as the 2027 season approaches. ## Common Issues to Watch Out For - **Waiting for the letter instead of checking online.** Your IRS online account often shows the verification request days before the mail arrives — that’s days of delay you can claw back. - **Ignoring the letter because you “already filed.”** The 5071C is not a scam and not optional. Your refund sits frozen indefinitely until you verify. - **Verifying by phone when online works.** The online path is dramatically faster than a 19%-answer-rate phone line. - **Assuming verification means you’re a fraud suspect.** It’s a filter, not an accusation — new addresses, new jobs, and first-time filers trip it routinely. - **Expecting the refund immediately after verifying.** Budget up to 9 weeks post-verification, and check your transcript rather than refreshing WMR hourly. Frequently Asked Questions QMy return was accepted but I have no refund after 21 days. Is it identity verification? AIt's the most common cause of this pattern in 2026. Check your IRS online account for a 5071C or CP5071 notice and pull your tax transcript - a suspended return typically shows no advancing processing codes or a 971 notice code. QDoes a 5071C letter mean someone stole my identity? ANo. It means the IRS's filters flagged something unusual about the return - a new address, new employer, or income that doesn't match third-party records yet. Verification clears the flag. QWhat's the fastest way to verify my identity with the IRS? AOnline through the identity verification service linked in your letter, using ID.me with a photo ID. Most filers finish in under 20 minutes. Phone is the backup - the TPP line answered only about 19% of calls last season. QHow long after verifying will I get my refund? AOfficial IRS guidance is up to 9 weeks. Many online verifiers see movement in 3-6 weeks, but returns with W-2 or 1099 data mismatches have faced up to 60 additional days. QCan I verify before the letter arrives? AGenerally no - you need the letter (or its digital copy in your IRS online account) because it contains the specific verification instructions and control information for your case. QWhat if I verified weeks ago and still have nothing? APast the 9-week mark, check your transcript for movement. If there's none and the delay is causing financial hardship, contact the Taxpayer Advocate Service - verification delays are their most common case type right now. **Categories:** Taxes and Retirement **Tags:** identify, identity, IRS, refund, review, tax, waiting --- ### [Average Social Security Check by State in 2026: How Does Yours Compare?](https://savingtoinvest.com/average-social-security-check-by-state/) **Published:** August 7, 2026 **Author:** Andy **Content:** ### Key Takeaways - The national average Social Security retirement benefit was $2,082.76/month as of May 2026. - Connecticut, New Jersey, and New Hampshire have the highest average checks, all above $2,180/month. - Mississippi, Louisiana, and Arkansas have the lowest average checks, all under $1,860/month. - The gap between the highest and lowest state averages is roughly $380/month - about $4,560 a year. - The difference isn't about the benefit formula itself; it reflects each state's mix of career earnings histories, claiming ages, and retiree migration patterns. - Your own benefit is based on your personal 35-year earnings record, not where you live - state averages are a population-level pattern, not an individual entitlement. The average Social Security retirement check nationally was **$2,083/month** as of May 2026. But that number hides a surprisingly wide spread depending on where retirees live — the gap between the highest-paying and lowest-paying states runs close to $400 a month. Here’s how your state stacks up, and why the difference exists in the first place. Covered in this Article: [Toggle](#) - [National Average Social Security Check in 2026](#National_Average_Social_Security_Check_in_2026) - [States With the Highest Average Social Security Checks](#States_With_the_Highest_Average_Social_Security_Checks) - [States With the Lowest Average Social Security Checks](#States_With_the_Lowest_Average_Social_Security_Checks) - [Why Does the Gap Exist?](#Why_Does_the_Gap_Exist) - [What This Means for You](#What_This_Means_for_You) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## National Average Social Security Check in 2026 As of May 2026, the average monthly benefit for retired workers was $2,082.76, reflecting this year’s [2.8% cost-of-living adjustment (COLA)](https://savingtoinvest.com/social-security-tax-and-cost-of-living-adjustment-cola/). That figure covers retired-worker benefits only — spousal, survivor, and disability benefits are calculated differently and typically run lower. ## States With the Highest Average Social Security Checks The states with the highest average benefits cluster in the Northeast and Mid-Atlantic: StateAverage Monthly BenefitConnecticut (CT)$2,196.15New Jersey (NJ)$2,190.05New Hampshire (NH)$2,183.82Delaware (DE)Among the highest, in the same range as the states aboveMaryland (MD)Among the highest, in the same range as the states above These states share a common pattern: retirees there tend to have longer, higher-earning career histories in industries like finance, insurance, and professional services, which translates directly into a higher 35-year average earnings record — the number Social Security actually uses to calculate your benefit. ## States With the Lowest Average Social Security Checks The lowest average benefits are concentrated in the South: StateAverage Monthly BenefitMississippi (MS)$1,814.24Louisiana (LA)$1,818.40Arkansas (AR)$1,852.07New Mexico (NM)$1,865.12Kentucky (KY)$1,865.76 ## Why Does the Gap Exist? Your Social Security benefit isn’t set by where you live — it’s calculated from your own highest 35 years of earnings, adjusted for inflation, and your age when you start claiming. State averages are simply the aggregate result of millions of individual calculations, and a few real factors drive the pattern: **Career earnings history.** States with a larger share of retirees who worked in higher-paying industries for most of their careers will show a higher average benefit, since higher lifetime earnings directly produce a higher Social Security benefit. **Claiming age patterns.** [Delaying benefits past full retirement age](https://savingtoinvest.com/retirement-ages-and-eligilbility-rules-for-receiving-401k-ira-and-social-security-beneifts/) increases your monthly check by roughly 8% per year up to age 70, while claiming early at 62 permanently reduces it. States where retirees more often delay claiming will show a higher average. **Retiree migration.** Some lower-average states have large populations of retirees who moved there specifically for a lower cost of living after a career (and higher earnings) elsewhere — meaning the state’s *resident* average may not reflect where those retirees actually built their earnings record. **Regional wage levels historically.** Since your benefit reflects decades of actual wages earned, states with historically lower regional wage levels will show lower average benefits among their long-term residents, independent of cost of living today. ## What This Means for You Your own benefit amount depends entirely on your personal earnings record and claiming decision — not your state’s average. If you want to estimate your own benefit rather than compare against a population average, the most accurate source is your **my Social Security** account at [ssa.gov/myaccount](https://www.ssa.gov/myaccount/), which shows your actual earnings history and personalized benefit estimates at different claiming ages. If you’re weighing when to claim, the tradeoffs between claiming at 62, your full retirement age, or waiting until 70 are worth working through carefully — a few percentage points either way compounds over a retirement that could last decades. For a full breakdown of that decision, including how it plays out for couples, see my [guide to claiming Social Security in 2026](https://savingtoinvest.com/claiming-social-security-benefits-later/). ## Common Issues to Watch Out For **Assuming your state’s average applies to you.** These are population averages across everyone drawing retirement benefits in a state — your individual benefit depends on your own record, not a state-level figure. **Confusing average benefit with maximum benefit.** The $2,082.76 average is far below the maximum possible benefit for someone who earned the taxable maximum for 35 years and delayed claiming to 70, which tops $5,000/month (see my claiming guide linked above for the full breakdown of who actually qualifies for that figure). **Mixing up retirement, survivor, and disability averages.** This figure covers retired-worker benefits specifically. SSDI and survivor benefit averages are calculated separately and typically differ from the retirement figure. **Not accounting for state taxes on benefits.** A handful of states still tax Social Security income at the state level, on top of any federal taxation, which can meaningfully affect your actual take-home amount depending on where you live in retirement. Frequently Asked Questions QWhat is the average Social Security check in 2026? AThe national average monthly Social Security retirement benefit was $2,082.76 as of May 2026, reflecting this year's 2.8% COLA. QWhich state has the highest average Social Security check? AConnecticut has the highest average at $2,196.15/month, followed closely by New Jersey ($2,190.05) and New Hampshire ($2,183.82). QWhich state has the lowest average Social Security check? AMississippi has the lowest average at $1,814.24/month, followed by Louisiana ($1,818.40) and Arkansas ($1,852.07). QWhy do Social Security checks vary so much by state? AYour benefit is based on your own 35-year earnings history, not where you live. States with higher averages tend to have retirees with longer, higher-earning career histories and a greater tendency to delay claiming past full retirement age. QDoes moving to a different state change my Social Security benefit? ANo. Your federal Social Security benefit amount is fixed based on your earnings record and claiming age - it doesn't change based on which state you live in. However, some states tax Social Security benefits at the state level, which can affect your net income. QIs the average Social Security check enough to live on? AFor most retirees, no - $2,082.76/month works out to about $25,000/year, which is below the poverty line in many areas once housing, healthcare, and other costs are factored in. Social Security was designed to replace a portion of pre-retirement income, not to be a sole source of retirement funding. **Categories:** Taxes and Retirement --- ### [Your SNAP EBT Card Got Skimmed? Here's Why There's Still No Federal Reimbursement in 2026 and 2027](https://savingtoinvest.com/your-snap-ebt-card-got-skimmed-heres-why-theres-still-no-federal-reimbursement-i/) **Published:** August 9, 2026 **Author:** Andy **Content:** ### Key Takeaways - Federal authority for states to reimburse SNAP recipients for benefits stolen through EBT card skimming expired December 20, 2024, and Congress hasn't renewed it as of August 2026. - During the roughly two years the program ran, USDA verified 1.9 million fraudulent transactions, nearly 679,000 affected households, and $322.5 million reimbursed nationwide. - Only two states - California (CA) and Maryland (MD) - currently run their own state-funded replacement programs; everywhere else, stolen SNAP benefits are gone for good once they're taken. - An estimated $607 million was stolen from EBT accounts nationwide in 2025, according to Propel's 2026 survey of more than 8,000 cardholders. - Chip-enabled EBT cards, which cut theft substantially in California, are rolling out in Maryland, Pennsylvania (PA), New Jersey (NJ), Virginia (VA), Oklahoma (OK), and Alabama (AL) - but a federal cut to SNAP administrative funding starting October 1, 2026 is complicating the pace elsewhere. - Two competing bills in Congress, from Rep. Zach Nunn (R-IA) and Rep. Grace Meng (D-NY), would restore federal reimbursement, but neither has passed as of this writing. - Locking your card and blocking out-of-state or online transactions when you're not actively shopping are the most effective steps available to you right now. Since December 20, 2024, there’s been no federal program to pay back SNAP recipients whose benefits are stolen through EBT card skimming. As of August 2026, Congress still hasn’t brought it back. That matters because the theft itself hasn’t slowed down. Propel, which surveyed more than 8,000 EBT cardholders in early 2026, estimates roughly $607 million was stolen from benefit accounts nationwide last year alone. Here’s what actually happened to federal reimbursement, which states still cover you, and what you can realistically do if it happens to you. Covered in this Article: [Toggle](#) - [How Federal Reimbursement Disappeared](#How_Federal_Reimbursement_Disappeared) - [How EBT Skimming Actually Works](#How_EBT_Skimming_Actually_Works) - [Only Two States Still Pay You Back](#Only_Two_States_Still_Pay_You_Back) - [Chip Cards Are Rolling Out — Slowly](#Chip_Cards_Are_Rolling_Out_%E2%80%94_Slowly) - [What To Do If Your Benefits Are Stolen](#What_To_Do_If_Your_Benefits_Are_Stolen) - [Looking Ahead: Could Federal Reimbursement Come Back?](#Looking_Ahead_Could_Federal_Reimbursement_Come_Back) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## How Federal Reimbursement Disappeared Congress first stepped in with the Consolidated Appropriations Act, 2023, which let states use federal funds to replace SNAP benefits stolen through card skimming, cloning, or similar fraud. It covered theft dating back to October 1, 2022. A later continuing resolution pushed the coverage window out to December 20, 2024. Then, when lawmakers passed the American Relief Act, 2025, they didn’t extend it any further — and the authority simply expired. In the roughly two years it existed, USDA verified 1.9 million fraudulent transactions, hitting close to 679,000 households, and paid out $322.5 million in reimbursements. Since December 20, 2024, that money is no longer available to anyone, in any state, unless the state itself picks up the tab. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) and I’ll update this page the moment Congress moves on restoring reimbursement — it’s come up in committee talk more than once this year.* ## How EBT Skimming Actually Works Most SNAP theft happens through three methods: skimming (a hidden device on a card reader copies your card data and PIN), cloning (thieves use that data to make a fake card), and phishing (someone poses as an official to trick you into giving up your PIN over text, email, or phone). The mechanics overlap a lot with broader [identity theft protection](https://savingtoinvest.com/hacking-social-security-numbers-and-how/) — the same instinct to lock down access before someone else gets to it applies to your EBT card, not just your Social Security number. Fraudsters tend to strike fast. Propel’s data shows 57% of thefts happen right on deposit day, and 53% of stolen benefits get spent out of the victim’s home state — meaning the crews behind this often aren’t local at all. The human cost adds up quickly. Among people who lost benefits in the past year, 56% skipped or reduced meals, 43% went into debt or borrowed money, and 42% turned to a food bank to get through the month. ## Only Two States Still Pay You Back If you live outside California or Maryland, a skimmed SNAP card today generally means that money is gone — permanently. Maryland has run its own state-funded reimbursement program since 2023 and kept it going after the federal version lapsed. You file an EBT Stolen Benefits Attestation Claim form through the Maryland Benefits portal, and the Maryland Department of Human Services (DHS) typically decides within 10 business days — no police report required, though filing one can help. For the rest of Maryland’s SNAP rules, including deposit dates and benefit amounts, see my [Maryland SNAP guide](https://savingtoinvest.com/maryland-snap-food-stamp-program-ebt-amounts-deposit-dates-and-eligibility/). California also reimburses victims, largely through state funds administered at the county level, after confirmation by a caseworker — my [California CalFresh guide](https://savingtoinvest.com/california-ca-calfresh-snap-program/) covers the program’s broader eligibility and benefit rules. StateStolen-Benefit ReimbursementCalifornia (CA)State-funded replacement; confirmed by county caseworkerMaryland (MD)State-funded since 2023; claims decided within ~10 business daysAll other statesNo reimbursement path since federal authority lapsed Dec. 20, 2024 **Example — Teresa**, a SNAP recipient in Ohio (OH), had $230 stolen from her card on deposit day in July 2026. With no state reimbursement program in Ohio, her options were locking her card, filing a police report for the record, and getting through the month via a local food bank — the $230 itself was gone for good. **Example — Raymond**, a SNAP recipient in Maryland, had $340 skimmed from his account the same week. He filed the EBT Stolen Benefits Attestation Claim form the next day, and Maryland DHS credited the full amount to his replacement card within eight business days. ## Chip Cards Are Rolling Out — Slowly Chip-enabled EBT cards are the leading fix states are experimenting with, since traditional magnetic-stripe cards are the easiest to skim. California was the first state to issue them, in 2025, and the early results are striking — Propel’s survey found EBT theft among California cardholders dropped from 19% to 8% after they received a chip card. Maryland is deactivating its old magnetic-stripe cards on September 30, 2026 in favor of chip technology. Pennsylvania (PA) recently committed roughly $14 million to a statewide chip-card switch, and Oklahoma (OK), Alabama (AL), New Jersey (NJ), and Virginia (VA) all have rollouts underway through the same processing vendor. The catch is money. The One Big Beautiful Bill (OBBB) cuts the federal share of SNAP administrative costs from 50% to 25% starting October 1, 2026 — right as more states are trying to fund a card upgrade. Anti-hunger advocates have said publicly that the timing makes some states reconsider whether they can afford the switch at all. ## What To Do If Your Benefits Are Stolen Act fast if you suspect your card was skimmed. Call your state’s EBT customer service line (the number is on the back of your card) to lock the card and request a replacement immediately — every hour a compromised card stays active is an hour a thief can keep draining it. Change your PIN as soon as you get a new card, and again after every deposit if you want to be aggressive about it — several recipients who’ve been hit more than once say a monthly PIN change is what finally stopped repeat theft. Avoid obvious combinations like 1111 or your birth year. Download your state’s official EBT app — it’s usually called something like EBTedge, ConnectEBT, or a state-branded name such as YourTexasBenefits — where the lock/unlock and out-of-state or online transaction-blocking features live. The habit that comes up again and again among people who’ve stopped getting hit: keep the card locked by default, and unlock it only at the register after the cashier rings up the total, then lock it again the moment the receipt prints. For online grocery orders, unlock only long enough to place the order. Delivery apps sometimes charge a small adjustment after delivery (for a substitution or weight difference), and if you relock immediately, that follow-up charge can fail — so leave online transactions unlocked until you’re sure the order is fully settled. None of this makes theft impossible. A few recipients have reported cards drained even while fully locked, most likely through a compromised store terminal rather than the card itself — but locking still closes off the most common way thieves get in. If you’re in California or Maryland, file your state’s stolen-benefits claim right away — Maryland’s form is available through the [Maryland Benefits portal](https://dhs.maryland.gov/ebt-reimbursement/), and California residents should contact their county SNAP office directly. Some states will ask for a case number to even open a claim, even if they ultimately can’t reimburse you; you can usually find it on any prior notice or renewal letter from your SNAP office, so it’s worth digging one up before you call. Everywhere else, your realistic backstops are your local food bank and [SNAP’s other support programs](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). For households already stretched thin, it’s also worth checking whether you qualify for [SNAP’s minimum benefit rules](https://savingtoinvest.com/seniors-and-veterans-surviving-on-23-minimum-food-stamp-snap-benefit/) or other assistance in the meantime. ## Looking Ahead: Could Federal Reimbursement Come Back? Two bills are sitting in Congress right now that would restore federal reimbursement. Rep. Zach Nunn (R-IA) introduced one after a personal experience — a veteran in his district had his SNAP benefits stolen — that would also fund reimbursement through civil penalties on thieves. Rep. Grace Meng (D-NY) has a separate, bipartisan-cosponsored bill that would require states to reimburse stolen SNAP funds using federal money. Neither has passed as of this writing, and it’s unclear whether either gets attached to a future farm bill or moves as a standalone measure. I’m also watching whether more states follow California and Maryland’s lead on state-funded reimbursement even without federal money behind it, given how popular the programs are once they exist. I’ll update this page as Congress acts or new states announce their own programs. ## Common Issues to Watch Out For I get variations of the same questions from readers whenever this comes up, so here’s what trips people up most. **Assuming your state will reimburse you like California or Maryland.** Unless you live in one of those two states, there’s currently no path to recover stolen SNAP benefits — plenty of recipients don’t find this out until after the money is already gone. **Believing a police report is required everywhere.** Maryland doesn’t require one to file a claim, though it can help investigators. Rules vary elsewhere, and assuming a report is mandatory (or unnecessary) can slow down getting a replacement card. **Not locking the card between shopping trips.** Card-locking is usually available through your state’s EBT app or a quick phone call, but more than half of people who don’t use it say they simply didn’t know it existed. **Confusing EBT theft with a SNAP funding lapse.** A skimmed card is a criminal theft of your specific balance — it has nothing to do with the government-funding fights that occasionally threaten SNAP more broadly. See my [SNAP shutdown funding breakdown](https://savingtoinvest.com/snap-shutdown-funding-risk-2026/) if that’s the angle you’re actually worried about. **Waiting before reporting suspected theft.** The sooner you call your state’s EBT line to lock the card and request a new one, the less a thief already inside your account can take before you cut them off. **Assuming a locked card can’t be touched.** Locking is the single best step available, but it isn’t airtight — a handful of recipients have reported theft even with every lock feature turned on, usually traced back to a compromised store terminal rather than the card itself. It’s still worth doing every time; just don’t treat it as a guarantee. Frequently Asked Questions QCan I get my stolen SNAP benefits back? AOnly if you live in California (CA) or Maryland (MD), which currently run their own state-funded replacement programs. Federal reimbursement authority for every other state expired December 20, 2024, and Congress hasn't renewed it. QWhy did federal SNAP theft reimbursement end? AThe Consolidated Appropriations Act, 2023 gave states temporary authority to use federal funds to replace benefits stolen through card skimming, later extended through December 20, 2024. The American Relief Act, 2025 didn't extend that authority further, so it lapsed. QHow do I file a claim in Maryland or California? AIn Maryland, submit the EBT Stolen Benefits Attestation Claim form through the Maryland Benefits portal or your local Department of Human Services office; DHS typically decides within 10 business days. California residents should contact their county SNAP office, since counties help administer reimbursements funded largely by the state. QDo I need a police report to get reimbursed? ANot in Maryland - DHS doesn't require one, though filing one can help investigators. Requirements can differ elsewhere, so check with your own state's SNAP office before assuming either way. QWhat can I do to protect my EBT card from skimming? ALock your card between shopping trips, block out-of-state and online transactions if you don't need them, avoid simple PINs, and check your balance regularly through your state's EBT app. These features exist in most states but often go unused simply because recipients don't know about them. QAre chip-enabled EBT cards available in my state? ACalifornia and Maryland already issue chip cards, and Pennsylvania (PA), New Jersey (NJ), Virginia (VA), Oklahoma (OK), and Alabama (AL) have rollouts in progress. Most other states haven't started, partly because a federal cut to SNAP administrative funding starting October 1, 2026 makes the switch harder to afford. QIs Congress going to bring back federal SNAP theft reimbursement? ATwo bills are pending - one from Rep. Zach Nunn (R-IA) and one from Rep. Grace Meng (D-NY) - that would restore it, but neither has passed as of this writing. It's possible reimbursement authority gets attached to a future farm bill, but that isn't guaranteed. QIf I lock my EBT card, is that enough to stop theft? ALocking your card through your state's EBT app (commonly EBTedge, ConnectEBT, or a state-branded app like YourTexasBenefits) is the most effective step available and stops the large majority of skimming attempts. It isn't a guarantee, though - a small number of recipients have had funds stolen even with the card fully locked, usually traced to a compromised store card reader rather than the card itself. Keeping the card locked by default and only unlocking it at checkout is still the best habit to build. **Categories:** Taxes and Retirement --- ### [2026–2027 Maximum Weekly Unemployment Insurance Benefits and Weeks By State - Latest Updates and News](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/) **Published:** November 11, 2014 **Author:** Andy **Content:** ### Key Takeaways - Washington (WA) has the highest maximum weekly benefit in the U.S. at $1,208/week for new claims filed on or after July 5, 2026; Massachusetts (MA) pays the most when dependent allowances are included, up to $1,105 plus $25 per dependent. - Mississippi (MS) remains the lowest at $235/week, with Alabama (AL), Louisiana (LA), Florida (FL), and Tennessee (TN) also capped at $275/week. - Most states cap duration at 26 weeks, but North Carolina (NC) is shortest at 12 weeks, while Massachusetts offers up to 30 weeks and Montana (MT) up to 28. - Iowa (IA) and Virginia (VA) both raised their maximum weekly benefit for new claims filed on or after July 5, 2026 - worth confirming your claim date against the new effective date. - All 50 states plus D.C. and Puerto Rico are covered here, with each dollar figure linked to the state's official source and, where available, our full state-specific benefits guide. - Unemployment benefits are federally taxable and reported on Form 1099-G; state tax treatment varies. Listed in the table below are the latest **maximum weekly unemployment insurance** benefit amounts by state, current as of July 2026. The Unemployment Compensation (UC) program is designed to provide benefits to individuals out of work or in between jobs, through no fault of their own. Note that the table shows the maximum *regular* weekly state unemployment insurance benefit, including dependent adjustments where a state offers them. In most states, the number of dependents you have, your prior employment duration (base period), and your average weekly wage will determine your actual benefit — not everyone qualifies for the maximum shown. Check your state’s official unemployment website (linked below) for state-specific eligibility rules and how to file. State unemployment amounts change often, so if you notice a discrepancy, leave a comment and I’ll verify and update. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get updates as state unemployment benefit amounts change.* Covered in this Article: [Toggle](#) - [Maximum Unemployment Benefits By State](#Maximum_Unemployment_Benefits_By_State) - [Steps to Filing and Getting Your Unemployment Claim Processed Quickly](#Steps_to_Filing_and_Getting_Your_Unemployment_Claim_Processed_Quickly) - [Will I Have to Pay Taxes on My Unemployment Benefits](#Will_I_Have_to_Pay_Taxes_on_My_Unemployment_Benefits) - [Can I Get Partial Unemployment Benefits](#Can_I_Get_Partial_Unemployment_Benefits) - [Claiming Benefits Across Multiple States](#Claiming_Benefits_Across_Multiple_States) - [Unemployment for Furloughed or Separated Federal Employees](#Unemployment_for_Furloughed_or_Separated_Federal_Employees) - [Unemployment Overpayment Waivers](#Unemployment_Overpayment_Waivers) ### Maximum Unemployment Benefits By State StateMax. Weekly Benefit AmountAdditional State InformationMax Weeks\*Alabama[$275](https://labor.alabama.gov/uc/21-08%20Claims%20and%20Benefits.pdf#q6)[Alabama Unemployment Benefits Updates](https://savingtoinvest.com/alabama-unemployment-benefits/)14 to 20Alaska[$370 (Individual) up to $442 (w/dependents)](http://labor.alaska.gov/unemployment/)[Alaska Unemployment Benefits Updates](https://savingtoinvest.com/alaska-unemployment-benefits/)26Arizona[$320](https://des.az.gov/services/employment/unemployment-individual/important-changes-july-1-2022)[Arizona Unemployment Benefits Updates](https://savingtoinvest.com/arizona-unemployment-benefits/)26Arkansas[$451](https://www.dws.arkansas.gov/unemployment/)[Arkansas Unemployment Benefits Updates](https://savingtoinvest.com/arkansas-unemployment-benefits/)16California[$450](https://edd.ca.gov/en/unemployment/eligibility/)[California Unemployment Benefits Updates](https://savingtoinvest.com/california-unemployment-benefits/)26Colorado[$844](https://cdle.colorado.gov/unemployment/faqs)[Colorado Unemployment Benefits Updates](https://savingtoinvest.com/colorado-unemployment-benefits/)26Connecticut[$721 (up to $796 w/dependents)](https://portal.ct.gov/dolcommunications/news/press-room/2023/ct-dept-of-labor-unemployment-benefit-maximum-rate-goes-up)[Connecticut Unemployment Benefits Updates](https://savingtoinvest.com/connecticut-unemployment-benefits/)26Delaware[$450](https://labor.delaware.gov/divisions/unemployment-insurance/claimant-faqs/)[Delaware Unemployment Benefits Updates](https://savingtoinvest.com/delaware-unemployment-benefits/)26District of Columbia[$444](https://unemployment.dc.gov/page/information-claimants)[Official District of Columbia Unemployment Site](https://unemployment.dc.gov/page/information-claimants)26Florida[$275](https://floridajobs.org/Reemployment-Assistance-Service-Center/reemployment-assistance/claimants/claimant-faqs-(new))[Florida Unemployment Benefits Updates](https://savingtoinvest.com/florida-unemployment-benefits/)12 to 23Georgia[$365](https://dol.georgia.gov/faqs-individuals/individuals-faqs-unemployment-insurance)[Georgia Unemployment Benefits Updates](https://savingtoinvest.com/georgia-unemployment-benefits/)14 to 20Hawaii[$868](https://labor.hawaii.gov/ui/tax-rate-schedule-and-weekly-benefit-amount/)[Hawaii Unemployment Benefits Updates](https://savingtoinvest.com/hawaii-unemployment-benefits/)26Idaho[$624](https://www.labor.idaho.gov/unemployment-benefits/monetary-eligibility/)[Idaho Unemployment Benefits Updates](https://savingtoinvest.com/idaho-unemployment-benefits/)26Illinois[$628 (Individual) up to $859 (w/dependents)](https://ides.illinois.gov/content/dam/soi/en/web/ides/ides%5Fforms%5Fand%5Fpublications/CLI110L.pdf)[Illinois Unemployment Benefits Updates](https://savingtoinvest.com/illinois-unemployment-benefits/)26Indiana[$390](https://www.in.gov/dwd/files/Claimant_Handbook.pdf)[Indiana Unemployment Benefits Updates](https://savingtoinvest.com/indiana-unemployment-benefits/)26Iowa[$644 (Individual) up to $790 (w/dependents)](https://workforce.iowa.gov/announcement/2026-06-30/iowans-unemployment-benefits-increase-starting-july-5)[Iowa Unemployment Benefits Updates](https://savingtoinvest.com/iowa-unemployment-benefits/)26Kansas[$637](https://www.dol.ks.gov/ui-faqs)[Kansas Unemployment Benefits Updates](https://savingtoinvest.com/kansas-unemployment-benefits/)26Kentucky[$720](https://kcc.ky.gov/career/If-you-are-an-Employer/Pages/Frequently-asked-questions.aspx)[Kentucky Unemployment Benefits Updates](https://savingtoinvest.com/kentucky-unemployment-benefits/)26Louisiana[$275](https://www.louisianaworks.net/hire/vosnet/Default.aspx)[Louisiana Unemployment Benefits Updates](https://savingtoinvest.com/louisiana-unemployment-benefits/)26Maine[$623 (plus $25 per dependent)](https://www.maine.gov/unemployment/claimsfaq/)[Maine Unemployment Benefits Updates](https://savingtoinvest.com/maine-unemployment-benefits/)26Maryland[$430 (includes $8 p/dependent allowance)](http://www.dllr.state.md.us/employment/claimfaq.shtml)[Maryland Unemployment Benefits Updates](https://savingtoinvest.com/maryland-unemployment-benefits/)26Massachusetts[$1,105 (+$25 p/dependent)](https://www.mass.gov/info-details/how-your-unemployment-benefits-are-determined)[Massachusetts Unemployment Benefits Updates](https://savingtoinvest.com/massachusetts-unemployment-benefits/)30Michigan[$530 (rising to $614 Jan. 2027)](https://www.michigan.gov/leo/bureaus-agencies/uia/tools/publications/eligibility-requirements)[Michigan Unemployment Benefits Updates](https://savingtoinvest.com/michigan-unemployment-benefits/)26Minnesota[$914](https://www.uimn.org/applicants/howapply/info-handbook/after-you-apply.jsp)[Minnesota Unemployment Benefits Updates](https://savingtoinvest.com/minnesota-unemployment-benefits/)26Mississippi[$235](https://mdes.ms.gov)[Mississippi Unemployment Benefits Updates](https://savingtoinvest.com/mississippi-unemployment-benefits/)26Missouri[$320](https://labor.mo.gov/DES/Claims)[Missouri Unemployment Benefits Updates](https://savingtoinvest.com/missouri-unemployment-benefits/)20Montana[$698](https://montanaworks.gov/Job-Seeker-UI-Claimant)[Montana Unemployment Benefits Updates](https://savingtoinvest.com/montana-unemployment-benefits/)28Nebraska[$582](http://dol.nebraska.gov/UIBenefits)[Nebraska Unemployment Benefits Updates](https://savingtoinvest.com/nebraska-unemployment-benefits/)26Nevada[$631](https://ui.nv.gov/)[Nevada Unemployment Benefits Updates](https://savingtoinvest.com/nevada-unemployment-benefits/)26New Hampshire[$427](http://www.nhes.nh.gov/services/claimants/index.htm)[New Hampshire Unemployment Benefits Updates](https://savingtoinvest.com/new-hampshire-unemployment-benefits/)26New Jersey[$905](https://nj.gov/labor/myunemployment/before/about/calculator/index.shtml)[New Jersey Unemployment Benefits Updates](https://savingtoinvest.com/new-jersey-unemployment-benefits/)26New Mexico[$624](https://www.jobs.state.nm.us/vosnet/Default.aspx)[New Mexico Unemployment Benefits Updates](https://savingtoinvest.com/new-mexico-unemployment-benefits/)26New York[$869](https://dol.ny.gov/you-apply-unemployment-frequently-asked-questions)[New York Unemployment Benefits Updates](https://savingtoinvest.com/new-york-unemployment-benefits/)26North Carolina[$350](https://des.nc.gov/individuals/apply-unemployment)[North Carolina Unemployment Benefits Updates](https://savingtoinvest.com/north-carolina-unemployment-benefits/)12 to 20North Dakota[$815](https://www.jobsnd.com/sites/www/files/documents/jsnd-documents/uiwbabenefitchart2022.pdf)[North Dakota Unemployment Benefits Updates](https://savingtoinvest.com/north-dakota-unemployment-benefits/)26Ohio[$647](https://unemployment.ohio.gov/PDF/Benefits_Estimator.pdf)[Ohio Unemployment Benefits Updates](https://savingtoinvest.com/ohio-unemployment-benefits/)26Oklahoma[$649](http://unemployment.ok.gov)[Oklahoma Unemployment Benefits Updates](https://savingtoinvest.com/oklahoma-unemployment-benefits/)26Oregon[$902 (new claims from June 28, 2026)](http://www.oregon.gov/EMPLOY/Unemployment/Pages/default.aspx)[Oregon Unemployment Benefits Updates](https://savingtoinvest.com/oregon-unemployment-benefits/)26Pennsylvania[$605 + $8 max dependent allowance](https://www.uc.pa.gov/unemployment-benefits/benefits-information/Pages/Weekly-Benefit-Rate.aspx)[Pennsylvania Unemployment Benefits Updates](https://savingtoinvest.com/pennsylvania-unemployment-benefits/)26Puerto Rico[$240](http://trabajo.pr.gov/det%5Fcontent.asp?cn%5Fid=24)[Official Puerto Rico Unemployment Site](http://trabajo.pr.gov/det%5Fcontent.asp?cn%5Fid=24)26Rhode Island[$745, up to $931 (w/dependents)](https://dlt.ri.gov/individuals/unemployment-insurance/unemployment-insurance-faq)[Rhode Island Unemployment Benefits Updates](https://savingtoinvest.com/rhode-island-unemployment-benefits/)26South Carolina[$350](https://dew.sc.gov/individuals/how-unemployment-insurance-works/weekly-benefit-amount)[South Carolina Unemployment Benefits Updates](https://savingtoinvest.com/south-carolina-unemployment-benefits/)20South Dakota[$553](https://dlr.sd.gov/ra/individuals/wage_requirements.aspx)[South Dakota Unemployment Benefits Updates](https://savingtoinvest.com/south-dakota-unemployment-benefits/)26Tennessee[$275](https://www.tn.gov/workforce/unemployment/manage-my-benefits-redirect/certify-weekly.html)[Tennessee Unemployment Benefits Updates](https://savingtoinvest.com/tennessee-unemployment-benefits/)26Texas[$605](https://www.twc.texas.gov/jobseekers/eligibility-benefit-amounts#benefitAmounts)[Texas Unemployment Benefits Updates](https://savingtoinvest.com/texas-unemployment-benefits/)26Utah[$801](https://jobs.utah.gov/ui/FAQ.html)[Utah Unemployment Benefits Updates](https://savingtoinvest.com/utah-unemployment-benefits/)26Vermont[$757](https://labor.vermont.gov/unemployment-insurance/ui-claimants/calculating-your-ui-benefits)[Vermont Unemployment Benefits Updates](https://savingtoinvest.com/vermont-unemployment-benefits/)26Virginia[$430 (claims before 7/5/26), rising to $478 (7/5/26+)](https://www.vec.virginia.gov/)[Virginia Unemployment Benefits Updates](https://savingtoinvest.com/virginia-unemployment-benefits/)26Washington[$1,208 (new claims filed 7/5/26+)](https://esd.wa.gov/unemployment/calculate-your-benefit)[Washington Unemployment Benefits Updates](https://savingtoinvest.com/washington-state-unemployment-benefits/)26West Virginia[$662](https://workforcewv.org/unemployment-insurance-benefits/unemployment-resources/frequently-asked-questions/)[West Virginia Unemployment Benefits Updates](https://savingtoinvest.com/west-virginia-unemployment-benefits/)26Wisconsin[$370](https://dwd.wisconsin.gov/uiben/handbook/pdf/mwechart.pdf)[Wisconsin Unemployment Benefits Updates](https://savingtoinvest.com/wisconsin-unemployment-benefits/)26Wyoming[$651](https://dws.wyo.gov/dws-division/unemployment-insurance/claimants/faq2/)[Wyoming Unemployment Benefits Updates](https://savingtoinvest.com/wyoming-unemployment-benefits/)26 \*Weeks shown as a range (e.g., “14 to 20”) mean the state adjusts duration based on its current unemployment rate — the higher the rate, the more weeks of benefits are available. The maximum weekly benefit amounts and durations above change based on state laws and average weekly wage calculations, so they can shift year to year (and sometimes mid-year). Check the linked state pages for the latest qualification and benefit details. #### What’s the Highest Amount You Can Get From Unemployment? The Federal-State UC program is a partnership based on federal law but administered by state employees under state law. Each state designs its own UC program within federal guidelines, including the benefit amount and eligibility rules. So while the highest weekly amount in each state is listed above, your actual weekly benefit amount (WBA) will generally be based on your base period income, dependents, and other factors specific to your state. ### Steps to Filing and Getting Your Unemployment Claim Processed Quickly - **File online** via your state’s unemployment website as soon as possible after losing your job or a significant pay cut — it’s the fastest way to submit a claim. If you have issues with your claim, you’ll likely need to [contact your state’s unemployment agency directly](https://savingtoinvest.com/state-unemployment-numbers-and-getting-in-touch-with-a-live-agent-for-help-with-your-ui-claim/). - Have **details of your former employer(s)** (up to 24 months of history), your Social Security number, address, and banking information ready when filing. Complete and correct information minimizes delays — it generally takes two to four weeks after filing to receive your first benefit payment. - You can get paid by check, debit card, or direct deposit. **Direct deposit** is the fastest option, so make sure your bank routing and account numbers are correct and up to date. - **Certify on time** (weekly or bi-weekly) to keep your benefits on schedule. Missing a certification window is one of the most common reasons people see payment disruptions. If you miss several weeks of certification, you may have to file a new claim. Your state unemployment website will usually let you estimate your benefit before or when you file a claim. You’ll need your income and hours worked during the four prior calendar quarters (your base year period), since these can vary significantly and affect your benefit amount. The final benefit amount is set after your state’s UI division processes your application and validates your income and employment history with your employer(s). ### Will I Have to Pay Taxes on My Unemployment Benefits Unemployment insurance is federally taxable income and must be reported on your IRS federal income tax return. Your state unemployment agency will send you Form 1099-G to file with your taxes (see [tax filing due dates](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/)), typically in late January, showing how much you were paid the previous year. You can also choose to withhold income tax from your benefits during the year, similar to a paycheck — 10% is generally the maximum allowed. If your deposit is lower than the weekly benefit amount (WBA) listed in the table above, withholding is almost always why. State withholding stacks on top of the federal 10% — it isn’t an either/or choice — so a claimant who elects both federal and state withholding can see 15–20% or more taken out before the deposit hits their account, even though the table above shows the pre-withholding maximum. State taxes on unemployment vary. Many states don’t tax unemployment benefits, either by law or because they don’t have a state income tax (e.g., Florida (FL), Texas (TX), Washington (WA)) — but several of these same states also pay the lowest maximum weekly benefits, so it’s a tradeoff. See more in this [detailed article on unemployment benefit taxes](https://savingtoinvest.com/are-unemployment-benefit-payments-taxable-at-a-state-and-federal-level-1099-g-forms-how-much-do-i-have-to-pay-based-on-my-withholding/). *Historical note: during 2020–2021, the federal government temporarily excluded up to $10,200 of unemployment benefits from tax under the American Rescue Plan, and offered enhanced pandemic-era programs (PUA, PEUC, $300–$600 FPUC). Those programs and the tax exclusion expired years ago and don’t apply to current unemployment benefits.* ### Can I Get Partial Unemployment Benefits If your hours or pay are cut significantly but you keep your job, you may qualify for [partial unemployment benefits](https://savingtoinvest.com/can-i-get-unemployment-working-part-time-partial-weekly-unemployment-benefit-rules-by-state/). Rules vary by state, and how much you get depends on your earnings for the specific week you certify. New York (NY), for example, uses a day-based partial UI scale rather than an hours cutoff: if you work 0 days in a week you get 100% of your weekly benefit, 1 day worked reduces it to 75%, 2 days to 50%, 3 days to 25%, and working 4 or more days in a week means no benefit for that week. As of 2026 New York’s maximum WBA is $869, up from $504 previously (effective October 2025). Pennsylvania (PA) and California (CA) offer **Partial Unemployment Benefit Credits** to offset reduced benefits from part-time work, though in higher-income states this won’t move the needle much. Check your own state’s unemployment website for its specific partial UI formula — the mechanics differ more than most people expect. ### Claiming Benefits Across Multiple States If you worked and earned wages in multiple states, you may be able to claim benefits from each relative to the income you earned there. Generally, you should first exhaust benefits from the state where you had the highest income and/or lived for the longest duration during your base year. After that, you can file claims in other states up to their maximum weekly benefit. ## Looking Ahead: 2027 Outlook Most states reset their maximum weekly benefit either January 1 or July 1, tied to changes in the state’s average weekly wage. A few states with mid-2026 increases already have their next adjustment locked in — Michigan’s maximum rises from $530 to $614 on January 1, 2027, for example. On the federal side, I’m not watching for any new unemployment stimulus program. The current administration’s stated agenda leans toward reducing rather than expanding federally funded benefit programs, so states will keep setting their own rates independently, as they always have. Key dates to watch heading into 2027: January 1 (when most wage-indexed state resets take effect) and the opening of state legislative sessions in January, when some states revisit duration or eligibility rules. I’ll update this page as amounts change — [subscribe here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get notified. ### Unemployment for Furloughed or Separated Federal Employees If you filed for unemployment during a government furlough and are now receiving back pay, you can’t keep both payments. State unemployment offices consider this “double dipping” and will send an overpayment notice demanding the money back — so set aside the exact amount you received and repay it promptly once notified. For federal employees facing a reduction in force (RIF), you’re eligible for Unemployment Compensation for Federal Employees (UCFE) — an earned benefit, not a loan. To apply, you’ll typically need your **SF-8** (Notice to Federal Employee About Unemployment Insurance) and your **SF-50** (Notification of Personnel Action). File your claim in the state where your official duty station is located, not necessarily where you live. ### Unemployment Overpayment Waivers Unemployment benefits can be overpaid for a variety of reasons, whether from claimant error or a state processing issue. If this happens, you may get a letter weeks or months later asking you to repay overpaid unemployment benefits. In most cases — assuming you were otherwise eligible and didn’t provide false information — state agencies will let you apply for a waiver to avoid repaying past overpayments. You’ll need to provide documentation of financial hardship if you’re asked to repay funds. If you’re navigating a job loss more broadly, it’s also worth checking whether you qualify for other support like [SNAP benefits](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/) while you search for your next role. ## Common Issues to Watch Out For I hear from readers on this page pretty regularly, and a handful of mistakes come up again and again: - **Assuming the table amount is what you’ll get.** The number in this table is a ceiling, not a guarantee — your actual weekly benefit is based on your own base period wages and is usually well below the state max unless you were a higher earner. - **Filing in the wrong state.** If you worked remotely or across state lines, file in the state where your “official” work location was, not necessarily where you live — this trips up a lot of remote and multi-state workers. - **Missing a weekly or bi-weekly certification.** This is the single most common reason I hear about payment delays. Miss enough weeks and you may have to restart your claim entirely. - **Misreporting part-time earnings.** Partial UI rules (see above) are stricter and more specific than people expect — round down, not up, and report gross pay, not net. - **Assuming pandemic-era programs still exist.** PUA, PEUC, and the $300–$600 FPUC supplements referenced in some older articles (including earlier versions of this one) expired years ago. If you see them mentioned anywhere as currently active, that content is stale. Frequently Asked Questions QWhich state has the highest maximum unemployment benefit? AAs of July 2026, Washington offers the highest maximum weekly benefit amount (WBA) for individuals without dependents, at $1,208, following an increase for new claims filed on or after July 5, 2026. When dependency allowances are included, Massachusetts offers the highest total potential benefit, reaching up to $1,105 plus $25 per dependent per week. QWhich state has the lowest maximum unemployment benefit? AMississippi currently has the lowest maximum weekly unemployment benefit in the United States, capped at $235. Alabama, Florida, and Tennessee are also low, each capped at $275 per week. QHow long can I receive unemployment benefits in my state? AThe standard duration is 26 weeks in most states. North Carolina offers the shortest at 12 weeks. Massachusetts provides the longest at up to 30 weeks. States like Alabama, Georgia, and Florida adjust their benefit weeks based on the state's current unemployment rate. QHow is my Weekly Benefit Amount (WBA) calculated? AMost states calculate your weekly benefit based on your earnings during a 'base period' (usually the first four of the last five completed calendar quarters). A common formula takes a percentage - roughly 50% - of your average weekly wage, up to the state's maximum cap. QDo any states require employees to pay for unemployment insurance? AYes. While unemployment insurance is primarily funded by employer taxes (FUTA and SUTA), three states - Alaska, New Jersey, and Pennsylvania - require employees to make small contributions through payroll deductions. QAre unemployment benefits taxable? AYes, unemployment compensation is taxable income at the federal level and must be reported on your federal tax return (Form 1040). Some states also tax these benefits, while others, like California and New Jersey, do not. QWhat changed for Iowa and Virginia in July 2026? ABoth states raised their maximum weekly benefit for new claims filed on or after July 5, 2026. Iowa's maximum rose to $790/week for claimants with dependents, and Virginia's maximum rose to $478/week under HB 1320 and SB 759, up from $430/week for claims filed earlier in 2026. QWhy is my unemployment deposit lower than the weekly benefit amount shown on this page? AAlmost always, it's withholding you elected. You can request 10% flat federal withholding (Form W-4V) and, in states that tax unemployment benefits, separate state withholding on top of that - the two stack rather than one replacing the other. A claimant with a $236 weekly benefit who elects both federal and state withholding could see a deposit closer to $195-$200 even though nothing is wrong with their claim. Check your state unemployment portal's payment history for a withholding breakdown if the gap looks larger than expected. **Categories:** Government Rebates and Payments **Tags:** benefits, insurance, Maximum, state, unemployment --- ### [2026–2027 No Tax on Tips: Who Qualifies, Income Limits, and Real Examples](https://savingtoinvest.com/no-tax-on-tips-2026-your-complete-guide-to-saving-thousands-with-real-examples/) **Published:** February 7, 2026 **Author:** Andy **Content:** ### Key Takeaways - The No Tax on Tips deduction lets eligible workers deduct up to $25,000 in qualified tip income from federal taxable income for 2025-2028. - It is an above-the-line deduction - you claim it even if you take the standard deduction. - Only voluntary tips from customers qualify. Automatic gratuities (18-20% added to large party bills) do not. - You must work in one of the 70+ IRS-designated tipped occupations (final regulations issued April 2026) and earn under $150,000 MAGI (single) or $300,000 (joint). - You still owe Social Security and Medicare taxes (FICA) on tips - this is a federal income tax deduction only. - Starting with 2026 income (filed 2027), employers report qualified tips in W-2 Box 12 code 'TP,' making documentation cleaner. - The $25,000 cap and the $150,000/$300,000 phase-out thresholds are fixed by statute - they do not adjust for inflation. - If you are married, you must file jointly to claim this deduction. - Pooled/shared tips qualify the same as tips handed directly to you, as long as the underlying money was voluntary - but managers and supervisors generally can't deduct tips they get from a pool, since federal labor law bars them from participating in one. If you’re a tipped worker, the question that matters most right now is: how much less will I owe the IRS? For a server earning $22,000 in tips at the 22% bracket, the answer is about **$4,840**. A bartender with $25,000 in tips in the 24% bracket saves **$6,000**. These are real numbers from the No Tax on Tips deduction in the One Big Beautiful Bill Act (OBBBA), and they apply to 2025 income — meaning most filers can claim them right now. Here’s the complete breakdown of who qualifies, what tips count, and exactly how to claim it. *Part of our [OBBBA Tax Guide series](https://savingtoinvest.com/reconciling-trumps-big-beautiful-bill-bbb/) — see all OBBBA deductions in one place.* Covered in this Article: [Toggle](#) - [What Is the No Tax on Tips Deduction?](#What_Is_the_No_Tax_on_Tips_Deduction) - [Who Qualifies: The IRS’s Final Occupations List (70+ Jobs)](#Who_Qualifies_The_IRSs_Final_Occupations_List_70_Jobs) - [Income Limits: The Phase-Out](#Income_Limits_The_Phase-Out) - [What Counts as a “Qualified Tip”](#What_Counts_as_a_%E2%80%9CQualified_Tip%E2%80%9D) - [Real-World Examples](#Real-World_Examples) - [How to Claim It: 2025 Tax Return (Filed 2026)](#How_to_Claim_It_2025_Tax_Return_Filed_2026) - [What Changes for 2026 Returns (Filed in 2027)](#What_Changes_for_2026_Returns_Filed_in_2027) - [Common Mistakes to Watch Out For](#Common_Mistakes_to_Watch_Out_For) - [State Taxes: Your State May Not Conform](#State_Taxes_Your_State_May_Not_Conform) - [What to Do With the Tax Savings](#What_to_Do_With_the_Tax_Savings) - [Looking Ahead: 2027 and 2028](#Looking_Ahead_2027_and_2028) ## What Is the No Tax on Tips Deduction? The OBBBA introduced a federal income tax deduction for qualified tips earned in tax years 2025 through 2028. The maximum deduction is **$25,000 per return per year** — and note this cap does *not* double for married couples. Even if both spouses earn tips and file jointly, the combined maximum deduction is still $25,000. It lives on the new **[Schedule 1-A](https://savingtoinvest.com/what-is-the-new-schedule-1-a-form-for-tax-filing/)**, which attaches to Form 1040. Because it’s above-the-line, it reduces your Adjusted Gross Income (AGI) — which can also unlock other tax benefits that have AGI-based limits. The deduction doesn’t eliminate all taxes on tips. You still owe **Social Security (6.2%) and Medicare (1.45%) taxes** on every tip dollar. This is a federal income tax reduction only. State income taxes are a separate question — check whether your state conforms. *Wondering whether this deduction means you should tip less as a customer? Short answer: no — it’s a capped, temporary tax break for the worker’s income tax bill, not a discount on the service you received. See [my tipping philosophy for 2026](https://savingtoinvest.com/tipping-philosophies/) for the full reasoning.* ## Who Qualifies: The IRS’s Final Occupations List (70+ Jobs) Treasury and the IRS issued [final regulations in April 2026](https://www.irs.gov/newsroom/treasury-irs-issue-final-regulations-listing-occupations-where-workers-customarily-and-regularly-receive-tips-under-the-one-big-beautiful-bill) (effective June 12, 2026) listing more than 70 occupations that “customarily and regularly received tips” as of December 31, 2024. Each occupation gets a three-digit Treasury Tipped Occupation Code (TTOC) used for W-2 reporting. Three occupations were added to the final list that weren’t on the preliminary version: **visual artists, floral designers, and gas pump attendants**. The most common qualifying jobs: **Food and Beverage:** Servers, bartenders, bussers, food prep workers, barbacks, food runners, hosts/hostesses at tipped establishments. **Personal Care:** Barbers, hairstylists, cosmetologists, nail technicians, estheticians, massage therapists, spa workers. **Transportation:** Taxi drivers, rideshare drivers (Uber/Lyft), limo drivers, tour bus drivers, delivery drivers receiving tips, valet attendants, bellhops, skycaps. **Gaming and Hospitality:** Casino dealers, poker dealers, hotel housekeepers, hotel concierges, coat check attendants. **Other:** Tour guides, fishing/hunting guides, parking lot attendants, movers receiving tips. If your job isn’t on this list, you don’t qualify — even if you regularly receive tips. The list is fixed as of December 31, 2024 and cannot be expanded by employers. ## Income Limits: The Phase-Out The deduction begins to phase out once your **Modified Adjusted Gross Income (MAGI)** exceeds: - **$150,000** for single filers (and head of household) - **$300,000** for married filing jointly The phase-out rate is **$100 per $1,000** over the threshold. At $160,000 (single), your $25,000 deduction becomes $24,000. At $250,000 (single), a full $25,000 deduction would be reduced to $15,000. A worker claiming the maximum deduction wouldn’t lose it entirely until MAGI reaches $400,000 — though most workers claiming smaller tip amounts phase out sooner. **Married filers must file jointly** to claim this deduction. Filing separately = no deduction. ## What Counts as a “Qualified Tip” This is where workers run into trouble. Not every dollar in the tip line of a credit card receipt qualifies. A qualified tip must be: - **Voluntary** — the customer chooses the amount with no obligation - **Unrestricted** — no employer sets or requires a minimum - **Paid in cash or electronic form** — cash, credit card, debit card, apps, gift cards - **Properly reported** — on your W-2 (Box 7), 1099, or Form 4137 **What does NOT qualify:** - Automatic gratuities (the 18–20% added to large party checks) — these are mandatory, not voluntary - Service charges built into the bill that customers cannot modify - Non-cash tips (tickets, meals, gift items) - Tips paid in digital assets like cryptocurrency (excluded under the April 2026 final regulations) - Tips not reported to your employer or the IRS **Example — Maria, Restaurant Server:** In 2025, Maria earned $18,000 in voluntary tips (Box 7 of her W-2) and $6,000 in automatic 20% gratuity on large parties. Only the $18,000 counts. She saves $3,960 in federal income tax (22% bracket). **What about pooled or shared tips?** A lot of restaurant workers don’t get tipped directly — the customer leaves a tip at checkout and it’s split among the staff based on hours worked. That’s still a qualified tip as long as the money the customer gave was voluntary and not billed as a mandatory service charge; the IRS’s final regulations confirm pooled tips are treated the same as tips paid straight to one person. The one carve-out: managers and supervisors generally can’t participate in a tip pool under federal labor law, so if a manager receives money from a pool, that portion doesn’t qualify for the deduction even though the rest of the pool does. ## Real-World Examples **Example 1 — David, Waiter (Lower Income)** - Wages: $28,000 - Qualified tips: $20,000 - MAGI: $48,000 (well under $150,000) - Tax bracket: 22% - **Federal income tax savings: $4,400** - David can now deduct the full $20,000. His taxable income drops from $48,000 to $28,000 (minus standard deduction). That $4,400 could fund a full Roth IRA contribution for the year. **Example 2 — Jessica, Bartender (Mid-Income)** - Wages: $45,000 - Qualified tips: $22,000 - MAGI: $67,000 - Tax bracket: 24% - **Federal income tax savings: $5,280** - Jessica is well under the phase-out. Her full $22,000 is deductible. She also still pays FICA on the tips, but saves over five grand on income tax. **Example 3 — Carlos, Rideshare Driver (Self-Employed)** - Net self-employment income (Schedule C): $38,000 - App-based tips: $8,500 - Tax bracket: 12% - **Federal income tax savings: $1,020** - Carlos deducts $8,500 from his federal taxable income. He still pays self-employment tax on the full amount, but saves $1,020 in income tax. One rule applies: self-employed workers can only deduct tips up to the net income from the business where they earned those tips. **Example 4 — Sarah, High-Earning Personal Trainer** - Wages and business income: $120,000 - Tips: $25,000 - MAGI: $145,000 — under the $150,000 threshold - **Full $25,000 deduction available** - If her MAGI had been $165,000, the deduction would drop by $1,500 (15 × $100). ## How to Claim It: 2025 Tax Return (Filed 2026) **Step 1: Gather your tip documentation** - W-2 Box 7 (Social Security tips reported through your employer) - Form 4137 if you received cash tips over $20/month that you’re now reporting - 1099-NEC, 1099-K, or 1099-MISC for self-employed tip income **Step 2: Separate automatic gratuities** If your W-2 or pay stubs mix voluntary tips and mandatory service charges, contact your employer for a breakdown. Only voluntary tips count. **Step 3: File Schedule 1-A** Most tax software will prompt you through this. If you use TurboTax, H&R Block, or TaxAct for 2025 returns, Schedule 1-A is built in. Enter your qualified tip amount, and the software calculates the phase-out if applicable. ## What Changes for 2026 Returns (Filed in 2027) Starting with 2026 income, employers must report qualified tips in **W-2 Box 12 using code “TP”** and include your Treasury Tipped Occupation Code (TTOC) in Box 14b. Service charges will be separated from voluntary tips on your pay stubs. This makes the deduction cleaner to document — you won’t need to manually separate voluntary from mandatory amounts if your employer follows the new reporting rules. You can also file a new **Form W-4** to reduce withholding from tips throughout the year, so you get more money in each paycheck rather than waiting for a refund. I think this is worth doing if you’re consistently in the $15,000–$25,000 tip range — getting that money monthly beats waiting until April. ## Common Mistakes to Watch Out For One mistake I hear about a lot: deducting automatic gratuities. If the restaurant adds an 18% charge to the bill for parties of 6 or more, that’s not a tip — it’s a mandatory service charge. Deducting it is an error that could trigger an audit. Not keeping records is the other big one. The IRS can ask you to prove every dollar. Keep a daily tip log — date, table or appointment, amount, payment method. A simple spreadsheet works. If you didn’t report tips to your employer during the year, you can still claim the deduction — but you must first report the unreported tips on **Form 4137** and pay the FICA taxes owed. You can’t claim the income tax deduction without reporting the income. Finally: if you’re married filing separately, you cannot claim this deduction. Period. I also hear from workers who assume pooled tips don’t count because the customer didn’t hand them the cash directly — that’s not how the rule works. If the money going into the pool was voluntary, your share of it qualifies. ## State Taxes: Your State May Not Conform The federal deduction doesn’t automatically flow to your state return. Most states conform to federal AGI to some degree, but not all have explicitly adopted the OBBBA tip deduction. Check your state’s 2025 tax instructions or consult a local tax professional. If your state hasn’t conformed, you’ll pay state income tax on the full tip amount even while getting the federal break. ## What to Do With the Tax Savings A $4,000–$6,000 refund boost is meaningful. Here’s what I’d prioritize: First, build a 3-month emergency fund if you don’t have one. Tipped workers face variable income — a buffer protects you from a bad month. After that, a Roth IRA makes a lot of sense for tipped workers in lower brackets. Contribute up to $7,000 ($8,000 if you’re 50+). With the tip deduction, your taxable income may be low enough that Roth contributions lock in that low rate permanently. Things can shift on the 2028 sunset date. I’ll update this page when new information comes in — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## Looking Ahead: 2027 and 2028 The No Tax on Tips deduction runs through the 2028 tax year. In 2027, the reporting infrastructure gets better — cleaner W-2 codes and better software support. One thing worth knowing: unlike the Child Tax Credit, the $25,000 tip cap and the $150,000/$300,000 phase-out thresholds are **not** indexed to inflation under current law (IRC §224) — they stay fixed at those dollar amounts through the 2028 sunset unless Congress changes the statute. What I’m watching: whether Congress bundles an extension — or an inflation-indexing fix — into future legislation, and how states are coming down on conformity. By 2027, I expect most large states to have clarity on whether they’re following the federal rule. For 2028, this is worth extra planning. If the deduction expires as scheduled, 2028 may be your last chance to maximize it — consider structuring tip-earning activity or W-4 withholding to take full advantage in that final year. *Also see: [2026–2027 IRS Tax Brackets and Rates](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/) — knowing your bracket helps you calculate exactly how much you’re saving.* *Also claiming overtime? See: [No Tax on Overtime — Who Qualifies and How to Calculate Your Deduction](https://savingtoinvest.com/no-tax-on-overtime-who-qualifies-how-to-calculate-your-deduction-with-e/) — the sister deduction for overtime premium pay, also on Schedule 1-A.* Frequently Asked Questions QWhat is the No Tax on Tips deduction and how much can I save? AThe No Tax on Tips deduction lets eligible tipped workers deduct up to $25,000 in qualified tips from their federal taxable income for tax years 2025-2028. In the 22% bracket, a $20,000 tip deduction saves $4,400. In the 24% bracket with $25,000 in tips, you save $6,000. QDo automatic gratuities qualify for the No Tax on Tips deduction? ANo. Only voluntary tips - amounts customers choose freely with no obligation - qualify. Automatic gratuities (like a mandatory 20% on large party bills) are treated as wages, not tips, and do not qualify for the deduction. QWhat is the income limit for the No Tax on Tips deduction? AThe deduction starts to phase out at $150,000 MAGI for single filers and $300,000 for married filing jointly. For every $1,000 over the threshold, your maximum deduction drops by $100. Married couples must file jointly to claim the deduction. QDo I still pay Social Security and Medicare taxes on my tips? AYes. The No Tax on Tips deduction only applies to federal income tax. You continue to owe Social Security (6.2%) and Medicare (1.45%) taxes on all tip income, and your state may not conform to the federal deduction either. QHow do I claim the No Tax on Tips deduction on my tax return? AFile Schedule 1-A with your Form 1040. Your qualified tips come from W-2 Box 7, Form 4137 for unreported cash tips, or 1099s for self-employed workers. Most major tax software (TurboTax, H&R Block, TaxAct) handles Schedule 1-A automatically for 2025 returns. QWhat changes about the tip deduction for 2026 tax returns filed in 2027? AStarting with 2026 income, employers report qualified tips in W-2 Box 12 using code 'TP' and include Treasury Tipped Occupation Codes in Box 14b. This makes the deduction cleaner to document. You can also adjust Form W-4 to reduce tip withholding during the year. QIs the $25,000 tip deduction cap adjusted for inflation? ANo. Unlike the Child Tax Credit, the $25,000 cap and the $150,000/$300,000 phase-out thresholds for the No Tax on Tips deduction are fixed dollar amounts under the statute (IRC §224). They do not increase with inflation and stay the same through the 2028 sunset unless Congress passes new legislation. QCan self-employed rideshare or gig workers claim the No Tax on Tips deduction? AYes, if your occupation qualifies. Rideshare drivers and tour guides are on the IRS list. Self-employed workers report tips on Schedule C and can deduct them via Schedule 1-A, up to the net income earned in that business. QDo pooled or shared tips qualify for the No Tax on Tips deduction? AYes, as long as the tips going into the pool were voluntary and not a mandatory service charge. The IRS's final regulations confirm pooled tips qualify the same as tips paid directly to one worker. The one exception is managers and supervisors, who generally can't participate in a tip pool under federal labor law - any pooled tips they receive don't qualify for the deduction even though the rest of the pool does. **Categories:** Taxes and Retirement --- ### [2026–2027 Minimum Wage by State: Federal Rate Stays $7.25 While 19 States Index for Inflation](https://savingtoinvest.com/federal-and-state-minimum-wage-increases/) **Published:** October 22, 2022 **Author:** Andy **Content:** ### Key Takeaways - The federal minimum wage has been $7.25/hour since July 24, 2009, and no legislation to change it has passed Congress. - 19 states plus D.C. automatically raise their minimum wage each year based on inflation (usually CPI-W), so their rates change without new legislation. - Washington, D.C. has the highest rate in the country at $18.40/hour; five states (AL, LA, MS, SC, TN) have no state minimum wage law and default to the federal $7.25. - Florida's minimum wage jumps to $15.00/hour on September 30, 2026 - the final step of a 2020 constitutional amendment - then switches to annual inflation adjustments starting 2027. - Michigan's rate rises to $15.00/hour on January 1, 2027, another multi-year phase-in reaching its final step. - California announced (July 31, 2026) it will raise its rate to $17.40/hour on January 1, 2027 - the highest of any state (D.C.'s $18.40 remains higher overall, but D.C. isn't a state). Virginia also has a new law taking its rate to $13.75 on January 1, 2027, en route to $15.00 by 2028. The federal minimum wage is still $7.25 an hour in 2026 — unchanged since July 2009, the longest stretch without an increase since the federal minimum wage was created in 1938. Where you actually stand depends entirely on your state. Washington, D.C. now has the highest minimum wage in the country at $18.40/hour, followed by Washington (WA) state at $17.13 and Connecticut (CT) at $16.94. Five states — Alabama (AL), Louisiana (LA), Mississippi (MS), South Carolina (SC), and Tennessee (TN) — have no state minimum wage law at all, so the federal $7.25 rate applies by default for any employer covered by the Fair Labor Standards Act (FLSA). Covered in this Article: [Toggle](#) - [2026 Minimum Wage by State](#2026_Minimum_Wage_by_State) - [Which States Automatically Adjust for Inflation?](#Which_States_Automatically_Adjust_for_Inflation) - [States With No Minimum Wage Law](#States_With_No_Minimum_Wage_Law) - [Two Examples: What This Looks Like in a Paycheck](#Two_Examples_What_This_Looks_Like_in_a_Paycheck) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) ## 2026 Minimum Wage by State Where a state’s minimum wage is higher than the federal rate, the state rate applies. Where a state has no minimum wage law, or sets one below $7.25, the federal rate applies instead for employers covered by the FLSA — which is the vast majority of employers. State2026 Minimum Wagevs. Federal ($7.25)Alabama (AL)$7.25 (no state law)EqualAlaska (AK)$13.00 → $14.00 (Jul 1)AboveArizona (AZ)$15.15AboveArkansas (AR)$11.00AboveCalifornia (CA)$16.90 → $17.40 (Jan 1, 2027)AboveColorado (CO)$15.16AboveConnecticut (CT)$16.94AboveDelaware (DE)$15.00AboveDistrict of Columbia (DC)$18.40AboveFlorida (FL)$14.00 → $15.00 (Sep 30)AboveGeorgia (GA)$7.25 (state law sets $5.15, but FLSA governs)EqualHawaii (HI)$16.00AboveIdaho (ID)$7.25EqualIllinois (IL)$15.00AboveIndiana (IN)$7.25EqualIowa (IA)$7.25EqualKansas (KS)$7.25EqualKentucky (KY)$7.25EqualLouisiana (LA)$7.25 (no state law)EqualMaine (ME)$15.10AboveMaryland (MD)$15.00AboveMassachusetts (MA)$15.00AboveMichigan (MI)$13.73 → $15.00 (Jan 1, 2027)AboveMinnesota (MN)$11.41AboveMississippi (MS)$7.25 (no state law)EqualMissouri (MO)$15.00AboveMontana (MT)$10.85AboveNebraska (NE)$15.00AboveNevada (NV)$12.00AboveNew Hampshire (NH)$7.25EqualNew Jersey (NJ)$15.92AboveNew Mexico (NM)$12.00AboveNew York (NY)$17.00 (NYC/Nassau/Suffolk/Westchester) / $16.00 (rest of state)AboveNorth Carolina (NC)$7.25EqualNorth Dakota (ND)$7.25EqualOhio (OH)$11.00 (larger employers) / $7.25 (small)AboveOklahoma (OK)$7.25EqualOregon (OR)$15.55 standard / $16.80 Portland metro / $14.55 non-urbanAbovePennsylvania (PA)$7.25EqualRhode Island (RI)$16.00AboveSouth Carolina (SC)$7.25 (no state law)EqualSouth Dakota (SD)$11.85AboveTennessee (TN)$7.25 (no state law)EqualTexas (TX)$7.25EqualUtah (UT)$7.25EqualVermont (VT)$14.42AboveVirginia (VA)$12.77 → $13.75 (Jan 1, 2027)AboveWashington (WA)$17.13AboveWest Virginia (WV)$8.75AboveWisconsin (WI)$7.25EqualWyoming (WY)$7.25 (state law sets $5.15, but FLSA governs)Equal *Source: [U.S. Department of Labor, Wage and Hour Division](https://www.dol.gov/agencies/whd/minimum-wage/state) — updated July 1, 2026. Local city/county minimum wages (Seattle, San Francisco, Denver, and others) can run higher than the state rate shown here.* ## Which States Automatically Adjust for Inflation? 19 states plus D.C. now index their minimum wage to inflation, typically the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). That means their rate can change every year without a new law or ballot measure. This group includes Alaska, Arizona, California, Colorado, Connecticut, Maine, Michigan, Minnesota, Missouri, Montana, Nebraska, New Jersey, New York, Ohio, Oregon, Rhode Island, South Dakota, Vermont, Washington, and D.C. — most of these adjustments land on January 1, though D.C. and Oregon adjust on July 1 instead. If your state isn’t on that list, its minimum wage only moves when the state legislature or a ballot initiative changes it. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get updates as more states finalize their 2027 rates.* ## States With No Minimum Wage Law Five states — Alabama, Louisiana, Mississippi, South Carolina, and Tennessee — have never passed their own minimum wage law. For virtually every employer in those states, the federal $7.25 rate is what actually applies, because almost all employers are covered by the FLSA. Georgia and Wyoming are a slightly different case: both technically have a state-set rate of $5.15/hour on the books, but federal law overrides it for FLSA-covered employers, so $7.25 is the practical floor there too. ## Two Examples: What This Looks Like in a Paycheck **Maria** works full-time at a retail store in Ohio (OH). Ohio’s minimum wage is $11.00/hour for larger employers, so at 35 hours a week she earns $385 before taxes — about $60 more per week than she’d make at the federal $7.25 rate. **James** works part-time in Tennessee (TN), one of the five states with no state minimum wage law. His employer pays the federal floor of $7.25/hour. At 20 hours a week, that’s $145 before taxes — a reminder of how much a state’s minimum wage law (or lack of one) can shift take-home pay for otherwise identical jobs. ## Common Issues to Watch Out For I get questions about this topic every time a state’s rate changes, so here’s what trips people up most: - **Confusing the state rate with a local city/county rate.** Seattle, San Francisco, Denver, and dozens of other cities set their own minimum wage above the state figure — the table above only shows state-level rates. - **Assuming tipped workers get the same rate.** Most states set a separate, lower “tipped minimum wage,” with the employer required to make up the difference if tips don’t bring an employee to the full minimum. A few states (California, Minnesota, Montana, Nevada, Washington, and others) don’t allow a tip credit at all. See [my tipping philosophy](https://savingtoinvest.com/tipping-philosophies/) for how this affects what you should actually tip. - **Missing employer-size exceptions.** Several states — Ohio, Montana, and Missouri among them — apply a lower rate to small businesses under a certain revenue threshold, so two workers doing the same job at different-sized companies can legally earn different minimums. - **Overlooking a mid-year increase.** Alaska (July 1), Florida (September 30), D.C. (July 1), and Oregon (July 1) all have increases that land outside of January — it’s easy to assume a state’s rate is fixed for the calendar year when it isn’t. - **Not checking for a scheduled jump.** Michigan, Florida, California, and Virginia all have a legislatively-mandated increase already locked in for the near future — Florida hits its final step in September 2026, while Michigan, California, and Virginia all have new rates landing January 1, 2027. ## Looking Ahead: 2027 Outlook A few things are already locked in for 2027. Michigan’s minimum wage rises to $15.00/hour on January 1, 2027, the last step of Senate Bill 8’s multi-year schedule, after which it starts adjusting annually like most indexed states. Florida’s rate — having just hit $15.00 in September 2026 — begins its own first CPI-W-based adjustment for 2027, calculated each September and taking effect the following January. California is also locked in for a January 1, 2027 increase — Governor Newsom announced on July 31, 2026 that the state’s rate will rise to $17.40/hour, a $0.50 jump from 2026’s $16.90 under the state’s existing inflation-indexing law. That makes California the highest statewide minimum wage in the country once it takes effect (Washington, D.C.’s $18.40 stays higher, but D.C. is a federal district, not a state). California’s fast-food workers already earn a separate $20.00/hour minimum, and healthcare workers are on their own phased schedule reaching as high as $25.00/hour at some facility types — neither shown in the table above, which tracks each state’s general minimum wage. Virginia has its own newly-signed law taking effect the same day: Governor Spanberger signed legislation raising the state’s rate from $12.77 to $13.75 on January 1, 2027, with a further increase to $15.00 by January 1, 2028. For the 19 states and D.C. that index to inflation, expect typical increases in the 2–4% range for 2027, consistent with recent CPI trends, though the exact figures won’t be finalized until late 2026. On the federal side, I’m not expecting movement. Multiple bills to raise the $7.25 federal floor — including a 2026 proposal from Senator Chris Murphy to raise it to $25/hour — have been introduced in Congress, but none have gathered the votes to pass a divided Congress. Barring a surprise, the federal minimum wage is likely to remain $7.25 through 2027. I’ll update this page as states finalize their 2027 numbers, typically between October and December 2026. **Related reading:** - [SNAP Food Stamp Benefit Amounts by State](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/) - [Maximum Weekly Unemployment Benefits by State](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/) - [2026–2027 No Tax on Overtime: Who Qualifies, How to Calculate Your Deduction](https://savingtoinvest.com/no-tax-on-overtime-who-qualifies-how-to-calculate-your-deduction-with-e/) - [2026–2027 No Tax on Tips: Who Qualifies, Income Limits, and Real Examples](https://savingtoinvest.com/no-tax-on-tips-2026-your-complete-guide-to-saving-thousands-with-real-examples/) - [Your 2026 Tax Refund Could Be 11% Bigger](https://savingtoinvest.com/your-2026-tax-refund-could-be-11-bigger-heres-how-to-claim-every-dollar/) Frequently Asked Questions QWhat is the federal minimum wage in 2026? AThe federal minimum wage is $7.25 per hour, unchanged since July 24, 2009. Congress has introduced bills to raise it, including a 2026 proposal to reach $25/hour, but none have passed. QWhich state has the highest minimum wage in 2026? AWashington, D.C. has the highest rate at $18.40/hour, followed by Washington (WA) state at $17.13/hour and Connecticut (CT) at $16.94/hour. QWhich states have no minimum wage law? AAlabama, Louisiana, Mississippi, South Carolina, and Tennessee have no state minimum wage law. Employers in these states covered by the Fair Labor Standards Act must pay the federal $7.25 rate. QDo all states adjust their minimum wage for inflation every year? ANo. Only 19 states plus D.C. automatically index their minimum wage to inflation. The rest only change their rate through new state legislation or a ballot initiative. QIs the tipped minimum wage the same as the regular minimum wage? ANo. Most states allow employers to pay tipped workers a lower base wage as long as tips bring total pay up to the full minimum wage. Some states, including California, Minnesota, and Washington, don't allow this 'tip credit' and require the full minimum wage regardless of tips. QWhen does Florida's minimum wage reach $15 an hour? AFlorida's minimum wage increases to $15.00/hour on September 30, 2026, the final step of a 2020 constitutional amendment. Starting in 2027, Florida switches to annual inflation-based adjustments. QCan a city or county set a minimum wage higher than the state's? AYes. Cities and counties including Seattle, San Francisco, Denver, and many others set their own local minimum wage above the state rate. Always check local ordinances in addition to the state rate. QWhich state will have the highest minimum wage in 2027? ACalifornia, at $17.40/hour starting January 1, 2027, will have the highest minimum wage of any state. Washington, D.C. - a federal district, not a state - stays higher overall at $18.40/hour. Virginia also has a new January 1, 2027 rate ($13.75/hour) on its way to $15.00/hour by 2028. **Categories:** Career and Relationships, Government Rebates and Payments, Personal Finance and Money **Tags:** federal, minimum wage, state, wage, workers --- ### [Reverse Mortgages in 2026: Pros, Cons, and the New $1,249,125 Lending Limit](https://savingtoinvest.com/look-at-pros-and-cons-of-reverse/) **Published:** August 20, 2008 **Author:** Andy **Content:** ### Key Takeaways - The 2026 FHA HECM lending limit is $1,249,125, up from $1,209,750 in 2025 - the 10th straight annual increase. - Reverse mortgage proceeds aren't taxable income, but taking a lump sum and holding it as savings can push you over the asset limits for SSI or Medicaid. - Total closing costs typically run $10,000-$20,000+, covering a 2% upfront mortgage insurance premium, an origination fee capped around $6,000, and standard closing costs. - Since 2015, every borrower must pass a Financial Assessment showing they can cover ongoing property taxes, insurance, and upkeep - this isn't the low-barrier loan it was in 2008. - A HECM is non-recourse: you or your heirs will never owe more than the home is worth, even if the loan balance grows past the home's value. Reverse mortgages let homeowners age 62 and older convert home equity into cash without selling or taking on a monthly payment. The federally insured version — a Home Equity Conversion Mortgage (HECM) — is still the most common way to do this, and the program looks meaningfully different than it did when this program was young. The 2026 lending limit just rose to **$1,249,125**, up from $1,209,750 in 2025, per HUD Mortgagee Letter 2025-22. Underwriting rules have also tightened significantly since a 2015 Financial Assessment requirement was added (more on that below), so today’s HECM is a more carefully screened loan than in the program’s early years. Covered in this Article: [Toggle](#) - [How a Reverse Mortgage Works](#How_a_Reverse_Mortgage_Works) - [What a Reverse Mortgage Actually Costs in 2026](#What_a_Reverse_Mortgage_Actually_Costs_in_2026) - [Does a Reverse Mortgage Affect Your Taxes, SSI, or Medicaid?](#Does_a_Reverse_Mortgage_Affect_Your_Taxes_SSI_or_Medicaid) - [The Financial Assessment: What Changed Since 2008](#The_Financial_Assessment_What_Changed_Since_2008) - [When a Reverse Mortgage Makes Sense](#When_a_Reverse_Mortgage_Makes_Sense) - [When It’s the Wrong Choice](#When_Its_the_Wrong_Choice) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027](#Looking_Ahead_2027) ## How a Reverse Mortgage Works A HECM lets you convert home equity into cash without selling your home or making monthly mortgage payments. Instead of paying the lender, the lender pays you — as a lump sum, a line of credit, fixed monthly payments, or some combination — and the loan balance grows over time as interest and fees accrue. The loan comes due when you sell the home, move out permanently, or pass away. At that point, you or your heirs repay the balance (typically by selling the home) and keep any remaining equity. Because a HECM is a non-recourse loan, you’ll never owe more than the home is worth, even if the balance grows past the home’s sale value — [FHA’s mortgage insurance](https://www.hud.gov/program%5Foffices/housing/sfh/hecm/hecmhome) covers that gap. How much you can borrow depends on your age, current interest rates, and the lesser of your home’s appraised value or the [2026 lending limit](https://reverse.mortgage/limits) of $1,249,125. Older borrowers can typically access a larger percentage of their home’s value, since the loan is expected to accrue interest over fewer years. ## What a Reverse Mortgage Actually Costs in 2026 The 2008-era version of this article undersold the costs. Here’s the real breakdown for 2026: CostTypical AmountUpfront mortgage insurance premium2% of appraised value (or the lending limit, whichever is less)Annual mortgage insurance premium0.5% of outstanding balance, accrued monthlyOrigination feeUp to 2% of the first $200,000 of value, plus 1% above that (capped near $6,000)Appraisal, title, and closing costsVaries by state — typically $2,000–$3,000 Most of these costs can be financed into the loan rather than paid out of pocket, but that also means the starting balance — and the interest that accrues on it — is higher. As of late July 2026, the adjustable HECM index sits around 4.6%, with all-in adjustable rates in the roughly 5.9%–6.6% range depending on lender margin, and fixed-rate HECMs running higher, in the 8%–9% APR range. Rates move weekly, so get a current quote before comparing lenders. ## Does a Reverse Mortgage Affect Your Taxes, SSI, or Medicaid? This is the part most 2008-era reverse mortgage articles (including the original version of this one) never addressed, and it’s the question I get asked most. **Taxes:** No. The IRS treats reverse mortgage payments as loan proceeds, not income, so they’re not taxable and don’t affect your tax bracket or [Social Security](https://savingtoinvest.com/social-security-tax-and-cost-of-living-adjustment-cola/) taxation. **SSI and Medicaid:** This is where it gets more complicated. Both programs are means-tested — they look at your assets, not just your income. If you take your reverse mortgage as a lump sum and let it sit in a savings account past the end of the month you received it, that cash can count as a countable asset and push you over SSI’s [asset limit](https://savingtoinvest.com/ssi-maximum-payment-amounts/) or your state’s Medicaid limit. Taking proceeds as monthly payments and spending them within the month you receive them is the more common way to avoid this problem, but the safest move is talking to an elder law attorney or benefits counselor before you choose a payout structure if you’re on or near either program. ## The Financial Assessment: What Changed Since 2008 The biggest structural change since this article was first written is HUD’s 2015 Financial Assessment rule. Every HECM applicant must now show they have the income, credit history, and cash flow to keep covering property taxes, homeowners insurance, and home maintenance for the life of the loan. Borrowers who look shaky on this test can be required to set aside a portion of their loan proceeds — a Life Expectancy Set-Aside — specifically to cover future property charges. This matters because failing to pay property taxes or insurance is one of the few ways a HECM can actually go into default and trigger foreclosure. The Financial Assessment exists to catch that risk before closing, not after. ## When a Reverse Mortgage Makes Sense A reverse mortgage can be a reasonable tool if you’re committed to staying in your home long-term, need to supplement retirement income, or want a standby line of credit for emergencies — similar in spirit to deciding how to take a [pension payout as an annuity vs. a lump sum](https://savingtoinvest.com/should-i-take-my-pension-payout-as-an-annuity-or-lump-sum-rollover-into-an-ira/), where the right structure depends on how you plan to draw down the money. It can also make sense to pay off an existing forward mortgage and eliminate that monthly payment, freeing up cash flow — something worth comparing against a standard [refinance](https://savingtoinvest.com/should-i-refinance-my-mortgage-and-do-i-qualify/) if your goal is simply a lower payment rather than accessing equity as cash. Because a reverse mortgage is a significant, largely irreversible decision, it’s worth getting an outside opinion before signing — see my rundown of [things a financial advisor won’t always volunteer](https://savingtoinvest.com/5-things-your-financial-advisor-wont-tell-you/) for questions worth asking directly. ## When It’s the Wrong Choice A reverse mortgage is usually not the right move if you’re planning to move within a few years — the upfront costs make it expensive for a short holding period. It’s also a poor fit for married couples where one spouse is under 62; taking the younger spouse off title to qualify can leave that spouse without loan protections if the older spouse dies or moves to a care facility, and non-borrowing spouse protections vary by loan vintage, so this needs a lender’s or attorney’s confirmation before signing anything. It’s also not the right tool if you can’t realistically keep up with property taxes, insurance, and upkeep — the Financial Assessment is designed to flag this, but it’s worth being honest about it yourself first. ## Common Issues to Watch Out For - **Confusing “no monthly payment” with “no ongoing cost.”** You still owe property taxes, homeowners insurance, and upkeep for as long as you hold the loan — missing these is a default trigger. - **Not understanding the lump-sum asset trap.** If you’re on SSI or Medicaid, a lump-sum payout sitting in a bank account can disqualify you even though the money itself isn’t taxed as income. - **Assuming all reverse mortgages are HECMs.** Proprietary (“jumbo”) reverse mortgages exist for homes worth more than the [2026 lending limit](https://reverse.mortgage/limits) of $1,249,125, but they aren’t FHA-insured and carry different terms — read the fine print separately. - **Overlooking HECM for Purchase.** You can use a reverse mortgage to buy a new primary residence in one transaction rather than only refinancing a home you already own — a lesser-known option worth asking a lender about if you’re downsizing. ## Looking Ahead: 2027 Expect the HECM lending limit to rise again for 2027, continuing the pattern of annual increases tied to Freddie Mac’s conforming loan limit — [subscribe here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) and I’ll update this page once HUD’s mortgagee letter confirms the new figure, typically announced in December. Rates will keep moving weekly with the broader mortgage market; check [current HECM rates](https://reverse.mortgage/rates) before applying rather than relying on the numbers above once several months have passed. Frequently Asked Questions QWhat is the 2026 reverse mortgage (HECM) lending limit? A$1,249,125, up from $1,209,750 in 2025. This is the maximum home value the FHA will count when calculating your loan proceeds, regardless of your home's actual appraised value. QDo I have to pay taxes on reverse mortgage proceeds? ANo. The IRS treats the money as loan proceeds, not income, so it isn't taxable and doesn't affect your Social Security taxation. QCan a reverse mortgage affect my SSI or Medicaid eligibility? AIt can, if you take a lump sum and let it sit as savings past the month you received it - both programs count assets, not just income. Monthly payouts spent within the month you receive them are less likely to cause a problem. QWhat does it cost to get a reverse mortgage in 2026? ATypically $10,000-$20,000+ in total, including a 2% upfront mortgage insurance premium, an origination fee capped around $6,000, and standard closing costs. Most of this can be financed into the loan. QWill I or my heirs ever owe more than the home is worth? ANo. A HECM is a non-recourse loan - FHA's mortgage insurance covers any gap between the loan balance and the home's sale value. QWhat is the Financial Assessment requirement? ASince 2015, every HECM applicant must demonstrate they can afford ongoing property taxes, insurance, and maintenance. Borrowers who don't clearly pass may be required to set aside loan proceeds specifically for future property charges. **Categories:** Real Estate and Mortgages **Tags:** debt, home, mortgage, retirement, reverse --- ### [How Much Money Do You Really Need to Be Financially Independent in 2026?](https://savingtoinvest.com/how-much-money-do-you-really-need-to-be-financially-independent/) **Published:** September 24, 2021 **Author:** Andy **Content:** ### Key Takeaways - The classic FIRE math still holds as a starting point: save roughly 25 times your annual expenses, and a 4% first-year withdrawal rate has historically lasted 30 years in most market conditions. - That 4% number isn't settled anymore. Bill Bengen, the researcher who invented the rule, now says 4.7% is safe with a more diversified portfolio; Morningstar's 2025 research puts the safer number closer to 3.9%. - If you're retiring decades early rather than at a traditional retirement age, plan for a lower withdrawal rate - most research suggests 3.3%-3.5% for a 40+ year horizon, not the 30-year number the original studies used. - Financial independence (able to cover your living expenses without a job) and independent wealth (never needing to work again) are two different goals with two different price tags - know which one you're actually aiming for. - Roughly half of Americans describe themselves as financially secure as of 2026, and the single biggest factor separating the secure from the exposed isn't income - it's whether they have an actual savings/spending plan. To be independently wealthy on the classic rule of thumb, you need about 25 times your annual expenses saved and invested. Spend $60,000 a year, and the target is $1.5 million. That math hasn’t changed — but the “safe” withdrawal rate underneath it has become a real debate over the last two years, and it’s worth understanding before you anchor your entire plan to a single number. Financial independence means covering your living expenses without needing a paycheck. Independent wealth goes a step further — never having to work again if you don’t want to. Both are achievable with planning, but they call for very different savings targets, and mixing them up is the most common mistake I see people make when they start running their own numbers. Covered in this Article: [Toggle](#) - [What Financial Independence Actually Means](#What_Financial_Independence_Actually_Means) - [How Much Do You Need to Feel Financially Secure?](#How_Much_Do_You_Need_to_Feel_Financially_Secure) - [How Much Do You Need to Be Independently Wealthy?](#How_Much_Do_You_Need_to_Be_Independently_Wealthy) - [The 4% Rule — And Why It’s More Complicated Now](#The_4_Rule_%E2%80%94_And_Why_Its_More_Complicated_Now) - [Two Worked Examples](#Two_Worked_Examples) - [Where You Stand: Net Worth by Age](#Where_You_Stand_Net_Worth_by_Age) - [Setting Your Financial Independence Timeline](#Setting_Your_Financial_Independence_Timeline) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) ## What Financial Independence Actually Means Financial independence is when your income and savings cover your life without outside help — no side income required, though you can still choose to work. Independent wealth is the more demanding version: your investments alone cover everything, permanently, whether you ever work again or not. The [FIRE movement](https://savingtoinvest.com/master-your-money-the-ultimate-personal-income-and-spending-roadmap/) (Financial Independence, Retire Early) is built around reaching this second, higher bar as young as possible through aggressive saving and investing rather than waiting until a traditional retirement age. ## How Much Do You Need to Feel Financially Secure? Before the bigger FIRE number, there’s a smaller, more immediate milestone: financial security. That’s having enough income and savings that you’re not living paycheck to paycheck or one emergency away from debt. A 2025 Bankrate survey found that close to half of Americans think they need to earn at least $100,000 a year to live comfortably, and about a quarter put the number at $150,000 or more to feel truly secure — well above the national median salary. That’s a perception about income, not a hard rule, and it shifts with inflation and where you live — for a closer look at where higher-income households actually stand, see my breakdown of [upper middle class income thresholds by state](https://savingtoinvest.com/are-you-upper-middle-class/). The more interesting finding is behavioral, not a dollar figure. Northwestern Mutual’s 2026 Planning & Progress Study found that 50% of Americans now describe themselves as financially secure, up from 44% the year before — but the gap between people who work with a financial advisor and those who don’t is stark: 71% of people with an advisor feel secure, compared to just 10% of those without one. Having an actual plan, not just a bigger income, appears to be doing most of the work. ## How Much Do You Need to Be Independently Wealthy? This is where the 25x rule comes in. The general guideline is that you need roughly 25 times your annual expenses saved to be considered independently wealthy — enough that a modest, sustainable withdrawal rate covers your spending indefinitely. If your monthly expenses run about $4,000 ($48,000 a year), the 25x target is $1.2 million. If your household spends $8,000 a month ($96,000 a year), you’re looking at $2.4 million. The number scales directly with your spending, not your income — which is why cutting expenses moves the goalpost closer just as much as earning more does. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) — I’ll update this page as new withdrawal-rate research comes out.* ## The 4% Rule — And Why It’s More Complicated Now The 25x number comes from the 4% rule: withdraw 4% of your portfolio in year one, adjust that dollar amount for inflation every year after, and historically that’s lasted through even the worst 30-year stretches in the market since the 1920s. Here’s what’s changed. Bill Bengen, the financial advisor who originally published the 4% rule in 1994, [revisited his own research in 2025](https://www.cnbc.com/2025/09/03/4percent-rule-inflation-retirement.html) and now says a more diversified portfolio (adding small-cap, international, and other asset classes beyond the original large-cap-stocks-and-bonds mix) supports a safe withdrawal rate closer to **4.7%**. On a $1 million portfolio, that’s the difference between a $40,000 and a $47,000 first-year withdrawal. Morningstar went the other direction. Its [2025 retirement income research](https://www.morningstar.com/retirement/whats-safe-retirement-withdrawal-rate-2026) puts the safer number at **3.9%** for a 30-year retirement with a 90% success rate, reflecting today’s equity valuations and bond yields rather than a century of historical averages. **If you’re planning a traditional retirement in your 60s,** somewhere between 3.9% and 4.7% is a reasonable planning range, and the exact number matters less than having some cushion built in. **If you’re pursuing FIRE and retiring decades early,** the math changes more. A 30-year study doesn’t cover a 40- or 50-year retirement, and most researchers who’ve modeled longer horizons land closer to 3.3%-3.5%. That pushes the 25x rule toward something closer to 28x-30x expenses for an early retiree, not 25x. ## Two Worked Examples **Jason**, 34, spends about $55,000 a year and wants to retire by 50 — a roughly 40-year retirement horizon. Using the traditional 25x/4% math, his target would be $1.375 million. Because his horizon is long enough that a 3.5% withdrawal rate is the more realistic safe number for his situation, his actual target is closer to $1.57 million (28.6x expenses) — about $200,000 more than the simple 25x rule alone would suggest. **Elena**, 58, spends $70,000 a year and plans to retire at 65 — a standard 30-year retirement horizon. The traditional 4% rule puts her target at $1.75 million, and Bengen’s updated 4.7% research (with a more diversified portfolio) would let her retire on closer to $1.49 million if she’s comfortable with that approach. She’s using 4% as her planning number and treating the extra cushion as a safety margin rather than banking on the higher figure. ## Where You Stand: Net Worth by Age Net worth (everything you own minus everything you owe) is the running scoreboard on your way to either goal. I keep a full breakdown of [median and average net worth by age](https://savingtoinvest.com/average-net-worth-by-age/) updated separately, since it deserves its own page — the short version is that the median American household is worth a fraction of what the average (skewed hard by a small number of very wealthy households) suggests, so compare yourself to the median, not the average, if you want an honest read on where you stand. ## Setting Your Financial Independence Timeline Once you know your target number, the timeline comes down to three inputs: your income, your expenses, and your savings rate. A simplified version of the formula: **Annual Expenses × 25 ÷ (Annual Income × Savings Rate) = Years to Financial Independence.** Swap in 28-30x expenses instead of 25x if you’re planning a FIRE-length retirement rather than a traditional one. The lever that moves fastest is your savings rate, not your income. Going from a 10% to a 20% savings rate roughly cuts your timeline in half, all else equal — increasing income by the same amount typically takes longer and often comes with lifestyle creep that eats the gain. Tools like [maxing out your 401(k) contributions](https://savingtoinvest.com/maximum-employee-and-employer-401k-contribution-limits-and-catch-up-amounts/), using a [Roth IRA](https://savingtoinvest.com/roth-ira-contribution-and-income-limits-plus-conversion-or-rollover-rules/) for tax-free growth, and understanding [compounding](https://savingtoinvest.com/power-of-compounding-1-million-now-or/) do more of the heavy lifting than most people expect once you’re a decade or more into saving consistently. ## Common Issues to Watch Out For I hear from readers running their own FIRE numbers a lot, and a few mistakes come up repeatedly. **Anchoring to 4% without checking your horizon.** The original studies were built around a 30-year retirement. If you’re retiring in your 30s or 40s, that 4% number is genuinely too aggressive — use something closer to 3.3%-3.5% instead, or build in real flexibility to cut spending in a bad market. **Ignoring taxes on the withdrawal side.** The 4% (or 3.9%, or 4.7%) rule is calculated pre-tax. Money coming out of a traditional 401(k) or IRA is taxed as ordinary income, so your actual spendable amount is lower than the headline withdrawal number unless most of your savings are in a Roth account. **Counting home equity in your FI number.** Your house doesn’t generate withdrawable income unless you sell it or take on debt against it. Most FIRE calculations should exclude primary-residence equity from the portfolio total. **Comparing your income to a national “financially secure” survey figure.** Cost of living varies enormously by state and city — a $150,000 income goes much further in most of the country than it does in a handful of expensive metro areas, so treat national survey averages as a loose reference point, not a target. **Treating the savings rate formula as exact.** Market returns aren’t linear, and a bad sequence of returns early in your saving years (or right after you retire) can shift your real timeline by years in either direction. Revisit your number annually rather than setting it once and forgetting it. ## Looking Ahead: 2027 Outlook The safe-withdrawal-rate debate isn’t settled, and I don’t expect it to be by next year — Bengen, Morningstar, and Vanguard are all working from different methodologies and are likely to keep publishing updated figures annually. What I’m watching for in 2027: whether Morningstar’s number moves again as bond yields and equity valuations shift, and whether more FIRE-specific research narrows the 3.3%-3.5% early-retirement range further. On the net worth side, the Federal Reserve’s next full Survey of Consumer Finances (covering 2025 data) is expected sometime in 2026 or 2027, which will give a real refresh of the age-based benchmarks rather than an inflation-adjusted estimate. I’ll update the figures on this page and the linked net worth breakdown as soon as that data lands. Frequently Asked Questions QHow much money do I need to be financially independent? AIt depends on your annual expenses and which goal you mean. For basic financial security, focus on covering your expenses with a stable income and emergency savings. For independent wealth (never needing to work again), the classic target is 25 times your annual expenses, though early retirees should plan closer to 28-30 times. QIs the 4% rule still accurate? AIt's still a reasonable starting point, but no longer the only number experts cite. Bill Bengen, who created the rule, now says 4.7% is safe with a more diversified portfolio. Morningstar's 2025 research suggests 3.9% is safer given current market valuations. Both are defensible; pick based on how much cushion you want. QWhat withdrawal rate should I use if I'm retiring early (FIRE)? AMost research on longer retirement horizons (40+ years) suggests 3.3%-3.5% rather than the traditional 4%, since the original studies were built around a 30-year retirement. QWhat's the difference between financial independence and being independently wealthy? AFinancial independence means your income and savings cover your living expenses without outside help, though you may still choose to work. Independent wealth means you never have to work again - your investments alone support you indefinitely. QDoes home equity count toward my financial independence number? AGenerally no, unless you plan to sell or borrow against it. Most FIRE and withdrawal-rate calculations should be based on liquid, investable assets rather than your primary residence's value. QHow long does it typically take to become financially independent? AIt depends heavily on your savings rate, not just your income. A simplified formula is Annual Expenses × 25 ÷ (Annual Income × Savings Rate), and doubling your savings rate roughly cuts your timeline in half, all else equal. **Categories:** Personal Finance and Money **Tags:** financial independence, FIRE, net worth, retirement planning, safe withdrawal rate, savings rate --- ### [Finding Cheaper Auto Insurance: What Will Actually Lower Your Premium in 2026 and 2027](https://savingtoinvest.com/cheaper-auto-insurance/) **Published:** February 19, 2011 **Author:** Andy **Content:** ### Key Takeaways - Full coverage car insurance averages roughly $2,500-$2,900/year nationally in 2026; minimum coverage averages about $1,570/year - Rates vary enormously by state - from around $1,400/year in Vermont to over $4,200/year in Maryland - Your driving record, deductible choice, vehicle type, and location are the biggest factors you actually control - Getting quotes from multiple providers at every renewal - not just staying with your current insurer - is the single most reliable way to save - Insurers will often match a competitor's quote rather than lose your business, especially if your driving record is clean Full coverage car insurance now averages around $2,500 to $2,900 a year nationally — roughly $210 to $245 a month — though it swings widely by state, from under $1,500 in Vermont to over $4,200 in Maryland. Minimum coverage runs cheaper, averaging around $1,570 a year, but leaves you far more exposed if you’re at fault in a serious accident. With hundreds of insurers competing for your business, the only way to actually find the best rate is to shop around. I do this every renewal, and it’s saved me real money more than once. Covered in this Article: [Toggle](#) - [What You’re Actually Paying For](#What_Youre_Actually_Paying_For) - [What Actually Moves Your Rate](#What_Actually_Moves_Your_Rate) - [How I Actually Shop for a Better Rate](#How_I_Actually_Shop_for_a_Better_Rate) - [Buying a Car? Insurance Cost Should Be Part of the Math](#Buying_a_Car_Insurance_Cost_Should_Be_Part_of_the_Math) - [Common Mistakes to Avoid](#Common_Mistakes_to_Avoid) ## What You’re Actually Paying For Every policy breaks down into a few core pieces, and knowing them makes it much easier to compare quotes apples-to-apples. **The premium** is what you pay the insurer for coverage over the life of the policy. It varies widely between providers, and even the same provider will quote you differently depending on the day, which is exactly why getting several quotes before committing matters. **The deductible** is the amount you pay out of pocket before your insurance kicks in on a claim, typically $0 to $1,000. The higher your deductible, the lower your premium — and vice versa. Most policies bundle some combination of these standard coverages: bodily injury liability (covers injuries you cause to others), property damage liability (covers damage you cause to someone else’s car, fence, or property), medical payments (covers injuries to you or your passengers), collision (covers damage to your own car from an impact), and comprehensive (covers non-collision damage — theft, fire, weather). ## What Actually Moves Your Rate Insurance companies employ actuaries to price risk, and your premium reflects a mix of factors — some you control, some you don’t. Your driving record matters most. A clean record for 5+ years typically gets you the best rates any given insurer offers. Where you live matters down to the specific street, so a recent move — especially to a lower-crime area — can lower your rate. The type of car you drive matters too: faster, pricier vehicles cost more to insure, in part because they tend to get driven faster. A few more factors worth knowing: whether you insure for agreed value or market value, whether the car is parked in a garage versus on the street, any modifications or accessories, whether you own the car outright or are financing it, and how many drivers under 25 are on the policy. Some insurers also check your [credit history and FICO score](https://savingtoinvest.com/breaking-down-and-improving-your-fico) as part of pricing. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates.* ## How I Actually Shop for a Better Rate I start with an online insurance comparison portal since it pulls quotes from multiple providers at once. But I’ve also found that going directly to specific providers — e.g. comparison of GEICO vs. Allstate — sometimes turns up exclusive deals you won’t see through an aggregator. The bigger habit that actually saves money: reviewing your policy every renewal, not just letting it auto-renew. I get two or three competitor quotes when my policy comes up, then call my current provider to see if they’ll match. Most insurers have roughly a 10% window of discretion on pricing, so if you have a clean driving record, this usually gets you a decent deal without even switching companies. If they won’t match it, I switch. One small, real example: simply noting in an online quote form that I park in a garage and have a factory alarm system installed knocked $200 off my premium over six months. That’s about 30 minutes of work for a meaningful discount. ## Buying a Car? Insurance Cost Should Be Part of the Math If you’re shopping for a car right now, it’s worth pricing insurance before you commit, not after. A used car isn’t automatically cheaper to insure than a new one — repair costs, safety features, and theft rates all factor in differently than sticker price does. I cover the fuller cost picture, including financing and CPO versus private-party tradeoffs, in my [complete used car buying guide](https://savingtoinvest.com/buying-a-used-car-unnecessary-hassle-or-financially-savvy/), and negotiating tactics that apply whether you’re buying new or used are in my [10 car buying tips post](https://savingtoinvest.com/ten-car-buying-tips-to-getting-best/). ## Common Mistakes to Avoid **Letting your policy auto-renew without shopping.** Rates and underwriting criteria shift constantly; a provider that was cheapest two years ago may not be now. **Choosing the lowest deductible without running the math.** A lower deductible means a higher premium every single month, whether or not you ever file a claim — it only pays off if you expect to make frequent small claims. **Hiding a previous claim.** Insurers share data through local and state accident databases, so this rarely works and can cost you more in the long run through denied claims or canceled coverage. **Assuming all comparison sites show the same providers.** Some insurers only sell direct and won’t appear on aggregator sites, so it’s worth checking a couple of specific providers separately from any portal you use. Frequently Asked Questions QHow much does car insurance cost on average in 2026? AFull coverage averages roughly $2,500 to $2,900 a year nationally ($210-$245/month), while minimum coverage averages about $1,570 a year. Actual cost varies significantly by state and personal factors. QWhat's the fastest way to lower my premium? AGet quotes from several providers at renewal time and let your current insurer know you're comparing. Many will match a competitor's price rather than lose your business, especially with a clean driving record. QDoes raising my deductible actually save meaningful money? AYes - a higher deductible (up to $1,000) generally lowers your premium noticeably. It only makes sense if you can comfortably cover that amount out of pocket if you need to file a claim. QIs it true where I live affects my rate that specifically? AYes. Insurers price down to the street level in many cases, and state-level averages alone can vary by nearly $3,000 a year between the cheapest and most expensive states. QDoes my credit score really affect my car insurance rate? AIn most states, yes - many insurers factor in credit-based insurance scores alongside your driving record when setting your premium. QIs a used car always cheaper to insure than a new one? ANot necessarily. Repair costs, safety-feature availability, and theft rates for a specific model can offset the lower purchase price. It's worth getting an insurance quote before finalizing a used-car purchase. **Categories:** Taxes and Retirement --- ### [Are Treasury I-Bonds a Good Investment? Current 2026 Rates, Purchase Limits, and Tax Rules](https://savingtoinvest.com/buying-a-treasury-i-savings-bond-and-purchase-limits/) **Published:** May 3, 2022 **Author:** Andy **Content:** ### Key Takeaways - I-bonds issued from May 2026 through October 2026 earn a 4.26% composite rate - a 0.90% fixed rate plus a 3.34% annualized inflation component. The rate resets every May 1 and November 1. - The annual electronic purchase limit is still $10,000 per person (or per entity, like an LLC or trust) via TreasuryDirect. - The option to buy an extra $5,000 in paper I-bonds using your tax refund was discontinued after 2024 - Form 8888 no longer offers it. TreasuryDirect electronic purchases are now the only way to buy I-bonds. - Interest is exempt from state and local tax, and can be fully or partially excluded from federal tax if used for qualified higher education expenses and your MAGI is below the annual phase-out threshold ($116,800 single / $182,650 married filing jointly for 2026). - You can't cash out for the first 12 months, and redeeming before 5 years costs you the last 3 months of interest. So after seeing a lot of buzz around the amazing yields being paid on Treasury Series I Savings Bonds (I-Bonds), I decided to take the plunge and buy some for my wife and I as a place to park some cash while the [stock market gyrates](https://savingtoinvest.com/stock-market-volatility-now-is-not-time/) and inflation remains stubbornly high. The buying experience was a little bumpy — Treasury Direct’s antiquated website can take some time to navigate — but given the yield on offer at the time, it was a hard investment to pass up. Rates have moved around a lot since then, so here’s where things stand now, plus what I learned about the buying process and tax rules along the way. Covered in this Article: [Toggle](#) - [Remind me again, what are I-Bonds?](#Remind_me_again_what_are_I-Bonds) - [Current I-Bond Rate](#Current_I-Bond_Rate) - [When setting up an online account, pick a simple password](#When_setting_up_an_online_account_pick_a_simple_password) - [I Savings Bond Purchase Limits](#I_Savings_Bond_Purchase_Limits) - [You need a separate account for your spouse!](#You_need_a_separate_account_for_your_spouse) - [Should I use I Savings Bonds as my Emergency Fund?](#Should_I_use_I_Savings_Bonds_as_my_Emergency_Fund) - [Talking to a Live Representative or Agent](#Talking_to_a_Live_Representative_or_Agent) - [Tax Considerations and Penalties](#Tax_Considerations_and_Penalties) - [Should I buy I-Bonds for my kids to get the education federal tax exemption?](#Should_I_buy_I-Bonds_for_my_kids_to_get_the_education_federal_tax_exemption) - [What if the US Government defaults and/or cannot make payments? Downside Risks](#What_if_the_US_Government_defaults_andor_cannot_make_payments_Downside_Risks) ### Remind me again, what are I-Bonds? I savings bonds are issued by the US treasury and, like [regular bonds](https://savingtoinvest.com/investing-considerations-for-the-year-ahead-stocks-crypto-bonds-and-real-estate/), provide interest payments on your initial investment (secured principal amount) over the term of your holding. The interest is based on two components: a **fixed rate**, which stays the same for the life of the bond, and a **variable/inflation rate**, which resets every six months based on CPI data. ### Current I-Bond Rate For bonds issued **May 2026 through October 2026**, the composite rate is **4.26%** — a 0.90% fixed rate combined with a 3.34% annualized inflation rate. This rate applies to the first six months you hold a bond bought in this window; after that, the rate resets to whatever the new fixed + inflation combination is at the time. Coverage PeriodComposite RateMay 2026 – October 20264.26%November 2025 – April 20264.03%May 2025 – October 20253.98% *Rates fluctuate every six months based on inflation — check the [full current and historical rate table](https://www.treasurydirect.gov/savings-bonds/i-bonds/i-bonds-interest-rates/) on TreasuryDirect before buying, since the number above will be out of date by the time you’re reading this if it’s after October 2026.* Even at the current rate, I-bonds still pay more than two to three times the average [high-yield savings account](https://savingtoinvest.com/high-yield-savings/) — though unlike a savings account, your money is locked up for at least a year. You can buy and learn more about Series I Savings Bonds via the [TreasuryDirect](https://www.treasurydirect.gov/savings-bonds/i-bonds/) site. Give yourself a couple of hours to research and set up an account. I also highly recommend doing this via your desktop PC or laptop, not your mobile phone. You’ll see why below. Once you buy the bonds, it takes 2 to 3 days for the transaction to complete and for the funds to be withdrawn from your bank account. ### When setting up an online account, pick a simple password The Treasury Direct site still looks and functions like it’s from the early 2000s. The overall security is solid — multi-factor authentication is in place — but every time you log in, you enter your password via their **virtual keyboard**, then get emailed a one-time password (OTP). Because the virtual keyboard is a pain to use, pick a relatively short (but secure) password. It’ll save you time and frustration, especially logging in from your phone. ### I Savings Bond Purchase Limits The maximum amount of I-bonds an individual or entity can buy in a single calendar year is **$10,000**, purchased electronically through TreasuryDirect. So a single person (adult or child) can buy $10,000. A family of 4 could technically buy up to $40,000 in one year across separate accounts. If you have an S-Corp, LLC, or trust, each entity can separately buy $10,000. **One thing that’s changed since I first wrote this:** the option to buy an *additional* $5,000 in paper I-bonds using your federal tax refund (via IRS Form 8888) was discontinued after the 2024 filing season. If you’re reading an older guide — including an earlier version of this one — that mentions a $15,000 combined limit using your refund, that option no longer exists. $10,000 electronic purchase per person/entity is now the ceiling. ### You need a separate account for your spouse! I made the mistake of opening my online account and trying to buy I-bonds for my wife as a secondary beneficiary via my own TreasuryDirect account. The site is very unclear about the need for separate online accounts, so I thought it would be easier, for admin’s sake, to manage everything in one place. Big mistake. When I deposited $10,000 for myself and then tried to deposit $2,000 for my wife in the same account, I got a notification that I’d exceeded the annual contribution limit and my deposit would be refunded. It took nearly three months to get the money back. **Lesson learned:** a married couple needs *separate* TreasuryDirect online accounts if both spouses want to purchase up to the $10,000 maximum each. You can add each spouse as a secondary beneficiary or gift recipient, but purchasing and redeeming at the full limit requires individual accounts. ### Should I use I Savings Bonds as my Emergency Fund? Not really. First, the $10,000 annual limit is probably too small for a true emergency fund. Second, and bigger: once you fund an account, you can’t withdraw for at least one year, and there’s a three-month interest penalty for selling within five years. Given those factors, I wouldn’t recommend I-bonds as a short-term emergency fund. They’re better thought of as a diversification play to hedge against inflation and earn a better-than-average return on medium-term cash. ### Talking to a Live Representative or Agent Trying to reach a live person at Treasury for I-bond questions is a bit like trying to [reach a live IRS agent](https://savingtoinvest.com/no-tax-refund-after-21-days-tips-on-contacting-the-irs/) — hard to do, and expect a long wait. Email is the most reliable option, even though responses can take several business days. Their FAQ pages are extensive but not always easy to navigate — searching your specific question is often faster. ### Tax Considerations and Penalties I-bond interest is exempt from state and local taxes. It can also be exempt from federal tax if you use the proceeds for qualified higher education expenses and meet the income limits below. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get the latest money, tax and stimulus news directly in your inbox.* ### Should I buy I-Bonds for my kids to get the education federal tax exemption? I grappled with this question for a while, and the short answer is generally **no** — max out I-bonds for you and your spouse instead, and use [529 accounts](https://savingtoinvest.com/how-to-choose-a-529-plan-and-pay-now-for-future-college-costs-contribution-limits-fees-and-tax-rules/) for your kids’ college funds. Ironically, the best way to use the education tax exclusion is to redeem your own I-bonds in the same year you pay for your kids’ college. If you use I-bond proceeds to pay qualified higher education expenses, you may not owe federal tax on the interest — but only if **you** (the parent) are the bond’s owner. Your child can be listed as a beneficiary, but not as an owner or co-owner, and still qualify you for the exclusion. **2026 income limits (per IRS Rev. Proc. 2025-32):** the exclusion starts phasing out once your MAGI exceeds **$101,800 (single/head of household)** or **$152,650 (married filing jointly)**, and disappears completely at **$116,800** and **$182,650**, respectively. These limits adjust annually — see [Form 8815](https://www.irs.gov/pub/irs-pdf/f8815.pdf) for the current-year figures before you file. ### What if the US Government defaults and/or cannot make payments? Downside Risks All treasury products are backed by the full faith and credit of the US government, which is what makes them so safe — and, in normal times, lower-yielding than commercial bonds. I-bonds are about as safe an investment as exists, with a very low chance of default. If the US government does default for some unforeseen reason, you’d likely have much bigger problems with your other investments anyway. Frequently Asked Questions QWhat's the current I-bond rate? AI-bonds issued May 2026 through October 2026 earn a 4.26% composite rate. This resets every May 1 and November 1 - check TreasuryDirect for the latest rate before buying. QWhat's the maximum I can buy in I-bonds each year? A$10,000 per person or entity (individual, LLC, S-corp, or trust) through electronic purchase on TreasuryDirect. The old option to buy an additional $5,000 in paper bonds with your tax refund was discontinued after 2024. QCan I still buy paper I-bonds with my tax refund? ANo. That option (via IRS Form 8888) ended after the 2024 filing season. TreasuryDirect electronic purchase is now the only way to buy I-bonds. QAre I-bonds a good emergency fund? ANot ideal. You can't withdraw for the first 12 months, and cashing out before 5 years costs you 3 months of interest. They're better suited to medium-term savings than an emergency fund. QHow do I avoid paying federal tax on I-bond interest? AUse the proceeds to pay qualified higher education expenses in the same year you redeem the bonds, and make sure your MAGI is under the annual phase-out limit ($116,800 single / $182,650 married filing jointly for 2026, per Form 8815). **Categories:** Taxes and Retirement --- ### [10 Car Buying Tips to Get a Great Deal in 2026](https://savingtoinvest.com/ten-car-buying-tips-to-getting-best/) **Published:** September 9, 2008 **Author:** Andy **Content:** ### Key Takeaways - Financing rates vary enormously by credit tier right now - the average new-car loan runs 6.4%-7%, but excellent credit gets closer to 4.5% while poor credit can mean 16% or higher. Arrange your own financing before you negotiate; don't let the F&I office set your rate. - Time your purchase for month-end or year-end, when dealerships are chasing volume bonuses and quotas. - Negotiate the total sales price only, never the monthly payment - too many moving pieces hide inside a payment number. - Skip the dealership trade-in when you can. A private-party sale or an instant online offer (Carvana, CarMax) usually beats what the dealer gives you. - If you're financing a new, U.S.-assembled vehicle, a 2025 tax law lets you deduct up to $10,000 a year in loan interest - worth checking before you buy, not after. - Buy from a large-volume dealership when possible - they depend on turnover, not per-car margin, which gives them more room to come down on price. The average new car now sells for around $50,000, and the average auto loan carries a [6.4%-7% interest rate](https://www.experian.com/blogs/ask-experian/auto-loan-rates-financing/) in 2026. Used car prices aren’t much of an escape either, averaging roughly [$26,000 nationally](https://www.kbb.com/car-news/average-used-car-price-again-tops-26000/). That combination makes negotiating harder to skip than it used to be — a few smart moves can still save you thousands. My wife and I went through this ourselves after holding onto our old family car well past the point where it made sense to keep it. Researching the market, comparing financing, and sharpening my negotiating tactics saved us over 20% versus what we’d have paid walking in cold. Here’s what actually worked, updated for how car buying looks today. Covered in this Article: [Toggle](#) - [1. Buy From a Large-Volume Dealership](#1_Buy_From_a_Large-Volume_Dealership) - [2. Buy From Existing Inventory](#2_Buy_From_Existing_Inventory) - [3. Buy at the End of the Month (or Year)](#3_Buy_at_the_End_of_the_Month_or_Year) - [4. Buy on a Slow Day](#4_Buy_on_a_Slow_Day) - [5. Skip the Dealership Trade-In](#5_Skip_the_Dealership_Trade-In) - [6. Arrange Your Own Financing First](#6_Arrange_Your_Own_Financing_First) - [7. Negotiate the Price, Never the Payment](#7_Negotiate_the_Price_Never_the_Payment) - [8. Do the Research and Stick to Your Number](#8_Do_the_Research_and_Stick_to_Your_Number) - [9. Don’t Let the Salesperson Rattle You](#9_Dont_Let_the_Salesperson_Rattle_You) - [10. Be Willing to Walk Away](#10_Be_Willing_to_Walk_Away) - [Don’t Forget the New Auto Loan Interest Tax Deduction](#Dont_Forget_the_New_Auto_Loan_Interest_Tax_Deduction) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027](#Looking_Ahead_2027) ## 1. Buy From a Large-Volume Dealership Big dealerships make their money on volume, not on squeezing maximum profit out of each car. Smaller lots depend on higher profit per sale, which works against you — especially on new cars, where their margin per unit is already thin. ## 2. Buy From Existing Inventory If a car is sitting on the lot, the dealer wants it gone. They’re paying floor-plan interest on it every day it doesn’t sell, which gives you leverage on anything that’s been sitting a while. ## 3. Buy at the End of the Month (or Year) Dealerships report their numbers monthly, and manager bonuses and manufacturer incentives are tied to hitting volume targets. That makes the final days of the month — and especially the final days of the year — the best window to find a motivated seller. I go into the specific incentives and timing windows dealers don’t advertise in my [guide to the best time of year to buy a car](https://savingtoinvest.com/end-of-year-car-deals-how-to-save-when-auto-shopping-dealers-beware/). ## 4. Buy on a Slow Day Nobody wants to shop for a car in bad weather or in the middle of a weekday. If you’re the only customer on the lot, the sales team has more time and more incentive to make a deal happen. ## 5. Skip the Dealership Trade-In Trading in makes negotiating harder because the dealer can hide their real numbers by shifting value between the new-car price and your trade-in offer. Sell your old car to a private party, or get an instant offer from CarMax or Carvana — either one typically nets you more than a dealer trade-in. I cover the full pricing math for the used side of this in my [used car buying guide](https://savingtoinvest.com/buying-a-used-car-unnecessary-hassle-or-financially-savvy/). ## 6. Arrange Your Own Financing First This matters more in 2026 than it used to. The average new-car loan runs 6.4%-7% APR, but your actual rate depends heavily on credit: buyers with excellent credit have been getting closer to 4.5%, while buyers with poor credit are seeing rates north of 16%. Used-car loans run even higher, averaging above 11%. Get pre-approved by your own bank or credit union before you set foot on a lot. That gives you a real number to compare against whatever the dealership’s finance office offers — and it stops them from quietly marking up your rate. The one exception worth taking at face value is a manufacturer’s subsidized promotional rate (0% or close to it), if your credit qualifies. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) and I’ll flag it if financing rates or dealer incentives shift meaningfully.* ## 7. Negotiate the Price, Never the Payment A monthly payment hides too many variables — loan term, price, interest rate, and trade-in value can all move independently to land on the same monthly number while you pay more overall. Negotiate one number only: the total sales price. On most models you should be able to get 10%-15% off sticker, more on anything sitting unsold longer than the dealer would like. ## 8. Do the Research and Stick to Your Number Look up the invoice price through sites like Kelley Blue Book or [Edmunds](https://www.edmunds.com/), then factor in that dealers typically receive additional manufacturer holdbacks and incentives on top of invoice — meaning their real cost is lower than the invoice price suggests. Getting the deal approved may take a while even after you agree on a number, since most salespeople need manager sign-off. Patience is worth real money here. ## 9. Don’t Let the Salesperson Rattle You Expect pushback on your offer — questions about where you got your number, claims that “nobody” will match it, pressure to close today. These are standard tactics meant to make you doubt your research. You did the research; hold your number, and don’t feel obligated to explain or justify it. ## 10. Be Willing to Walk Away If the dealership won’t meet a reasonable number, leave. Big dealerships will make most deals happen on anything but their most in-demand models — the number of similar cars sitting on their lot tells you how much leverage you actually have. ## Don’t Forget the New Auto Loan Interest Tax Deduction If you’re financing a new vehicle assembled in the United States, the [One Big Beautiful Bill (OBBB)](https://savingtoinvest.com/reconciling-trumps-big-beautiful-bill-bbb/) added a federal deduction worth checking before you sign. You can deduct up to $10,000 a year in loan interest on a qualifying new car, for loans originated in 2025 through 2028 — an above-the-line deduction available whether you itemize or not. It only applies to new vehicles (you have to be the first owner) with U.S. final assembly, and it phases out at higher incomes. I break down the exact eligibility rules, income limits, and worked examples in my [full guide to the auto loan interest deduction](https://savingtoinvest.com/understanding-the-auto-interest-tax-deduction-for-new-cars-between-2025-to-2028/). Buying used instead? You may still be able to deduct the sales tax on the purchase — see [how the sales tax deduction works for a new or used car](https://savingtoinvest.com/can-i-claim-the-sales-tax-on-my-new-or-used-car-purchase/) for the details. And if you’re financing anything electric, note that the separate federal EV purchase credit ended September 30, 2025 — it’s gone regardless of how the vehicle is assembled, though the loan-interest deduction above still applies to qualifying EVs. ## Common Issues to Watch Out For A few mistakes I see buyers make even when they’ve done their homework: **Letting the dealer run your credit before you’re ready to buy.** Multiple hard inquiries in a short window (typically 14-45 days, depending on the scoring model) usually count as one for scoring purposes — but only if they’re all auto-loan inquiries clustered together. Spacing out applications across weeks can cost you points for no reason. **Forgetting to shop your insurance before you sign.** Your premium can shift significantly based on the exact make, model, and trim you choose. I cover how to keep that cost down in my [guide to finding cheaper auto insurance](https://savingtoinvest.com/cheaper-auto-insurance/). **Not budgeting for the down payment separately.** If you’re saving up ahead of a purchase, keeping that cash in [a high-yield savings account](https://savingtoinvest.com/high-yield-savings/) rather than a standard checking account earns you something while you wait, instead of nothing. **Assuming the advertised APR applies to everyone.** Manufacturer promotional rates are usually reserved for top-tier credit only — most buyers won’t actually qualify for the number in the commercial. ## Looking Ahead: 2027 Auto loan rates track the broader rate environment, so where they land in 2027 depends largely on Fed policy over the next several quarters — worth watching if you’re timing a purchase around a possible rate cut. The auto loan interest deduction described above stays in place through the 2028 tax year regardless of what rates do, so that part of the math isn’t going anywhere for now. Frequently Asked Questions QWhat's the single best car-buying tip for getting a lower price? AGet your own financing lined up before you negotiate, and negotiate only the total sales price - never the monthly payment, which hides too many moving pieces. QIs it true that buying at the end of the month gets a better deal? AGenerally, yes. Dealership sales staff and managers are chasing monthly volume bonuses, so they're more willing to discount in the final days of the month - and especially the final days of the year. QWhat's a good auto loan interest rate in 2026? AIt depends heavily on credit. The average new-car loan runs 6.4%-7% APR, buyers with excellent credit have been getting closer to 4.5%, and buyers with poor credit have seen rates above 16%. Used-car loans average above 11%. QIs trading in my old car a bad idea? AIt can cost you money, since dealers can obscure their real numbers by shifting value between your trade-in and the new car's price. Get a private-party or instant-offer quote first so you know what you're giving up. QCan I deduct the interest on my new car loan? APossibly. A 2025 tax law allows up to $10,000 a year in auto loan interest deductions for new, U.S.-assembled vehicles financed between 2025 and 2028, subject to income limits. QDo these tips apply to used cars too, not just new? AYes - the negotiating tactics here work for both. For used-car-specific numbers on pricing and financing, see my complete used car buying guide. **Categories:** Saving and Investing ideas **Tags:** Buying, car, Sales, TIPS --- ### [BOI Reporting for LLCs: Domestic Companies Are Now Exempt (Here's Who Still Has to File)](https://savingtoinvest.com/do-you-need-to-file-a-boi-report-for-your-llc-the-latest-treasury-update/) **Published:** March 4, 2025 **Author:** Andy **Content:** ### Key Takeaways - If your LLC or corporation was formed in the United States, you do not need to file a Beneficial Ownership Information (BOI) report with FinCEN - this has been the case since FinCEN's March 2025 interim final rule. - Only companies formed in a foreign country that are registered to do business in the US still have a BOI filing requirement. - This exemption applies automatically - you don't need to file anything to claim it, and there are currently no penalties for not filing if you're a domestic company. - FinCEN has said it intends to make this exemption permanent through a final rule, but as of mid-2026 that final rule still hasn't been published - the interim rule remains in effect in the meantime. - If your LLC previously filed a BOI report before the rule changed, you don't need to do anything further; there's no requirement to withdraw or update that filing. If you own an LLC and have been putting off dealing with the Beneficial Ownership Information (BOI) reporting requirement, here’s the update you’ve been waiting for: **you almost certainly don’t need to file, and haven’t since March 2025.** This page has gone through several rounds of “wait and see” as courts and Treasury went back and forth on the Corporate Transparency Act (CTA). That back-and-forth is essentially over for domestic businesses. Here’s where things actually stand. Covered in this Article: [Toggle](#) - [The Short Answer: US-Formed LLCs Are Exempt](#The_Short_Answer_US-Formed_LLCs_Are_Exempt) - [Who Still Has to File](#Who_Still_Has_to_File) - [Is This Permanent?](#Is_This_Permanent) - [What If I Already Filed?](#What_If_I_Already_Filed) - [Bottom Line](#Bottom_Line) ## The Short Answer: US-Formed LLCs Are Exempt On March 21, 2025, FinCEN announced it would not enforce BOI reporting against domestic reporting companies — meaning any LLC, corporation, or similar entity formed under US state law — or their beneficial owners. FinCEN published this as an interim final rule on March 26, 2025, which narrowed the entire BOI reporting requirement down to one group: **companies formed in a foreign country that are registered to do business in the United States.** If you formed your LLC in Delaware, Texas, Florida, or any other US state, you are not a “reporting company” under the current rule, full stop. You don’t need to file, and you don’t need to file anything to claim the exemption — it applies automatically based on where and how your company was formed. ## Who Still Has to File The requirement now applies narrowly to foreign entities registered to do business in the US: - Reporting companies that were foreign entities registered to do business in the US **before** March 26, 2025 had to file their initial BOI report by April 25, 2025. - Foreign entities that register to do business in the US **on or after** March 26, 2025 have 30 calendar days from the date their registration becomes effective to file an initial BOI report. If that’s not your situation — you’re a US citizen or US-formed entity — none of this applies to you. ## Is This Permanent? Not officially yet, and that’s the one loose thread worth flagging. FinCEN has repeatedly signaled it intends to finalize this exemption through a formal rulemaking process, and as of mid-2026, FinCEN’s director has said she’s “optimistic” a final rule is coming soon. But it hadn’t been published as of this update. In practice, that distinction hasn’t mattered much for over a year: the exemption for domestic companies has held continuously since March 2025 under the interim rule, with no indication from Treasury or FinCEN that it plans to reverse course. But because the final rule technically isn’t locked in, it’s worth a quick check of [FinCEN’s BOI page](https://www.fincen.gov/boi) if you want the most current status before assuming this is permanently settled. ## What If I Already Filed? If you filed a BOI report before the March 2025 rule change, you don’t need to do anything — there’s no requirement to withdraw or amend a filing that’s no longer required. It simply becomes moot. ## Bottom Line Unless your LLC or corporation was formed outside the United States and is registered to do business here, you can cross BOI reporting off your compliance checklist for now. If you’re a foreign-formed entity operating in the US, the filing requirement and deadlines above still apply to you, and it’s worth confirming your specific situation with a business attorney given the moving pieces here. Frequently Asked Questions QDo I need to file a BOI report for my LLC in 2026? AIf your LLC was formed in the United States, no. FinCEN exempted all domestic reporting companies and their beneficial owners from BOI reporting starting March 2025. QWho still has to file a BOI report? AOnly companies formed in a foreign country that are registered to do business in the United States. QIs the exemption for US companies permanent? AIt's in effect under an interim final rule that's been in place since March 2025. FinCEN has said it plans to finalize this through formal rulemaking, but as of mid-2026 that final rule hasn't been published yet. QI already filed a BOI report before the rule changed - do I need to withdraw it? ANo. There's no requirement to withdraw or update a filing that's no longer required. QWill I be fined if I don't file? ANo, not if you're a domestic (US-formed) company. There are currently no penalties for domestic companies that don't file, since they're exempt from the requirement entirely. **Categories:** Taxes and Retirement --- ### [Commodity Supplemental Food Program (CSFP) 2026: Income Limits and How to Get Free Senior Food Boxes](https://savingtoinvest.com/commodity-supplemental-food-program-income-guidelines/) **Published:** February 9, 2023 **Author:** Andy **Content:** ### Key Takeaways - The Commodity Supplemental Food Program (CSFP) provides a free 40-pound box of USDA foods each month to low-income seniors age 60 and older. - The 2026 income guideline is a single threshold - at or below 150% of the Federal Poverty Guidelines - replacing the older two-tier structure that used a 130% cutoff for seniors. - For a household of one, that's $23,940 a year ($1,995/month); for a household of two, $32,460 a year ($2,705/month). Add $8,520 per year for each additional household member. - These guidelines took effect February 10, 2026 and run through June 30, 2027. - CSFP is now targeted specifically at seniors - it's separate from standard SNAP benefits and is administered through state agencies and local food banks, not the SNAP office. Under the broader umbrella of USDA nutrition assistance programs sits a smaller, less-known one: the Commodity Supplemental Food Program (CSFP), which helps roughly 600,000 low-income seniors a year supplement their diets with free groceries. Unlike [SNAP](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/), which provides a monthly benefit card to spend at grocery stores, CSFP works differently: if you qualify, you receive a free 40-pound box of USDA-approved food — think shelf-stable staples like canned fruits and vegetables, cereal, pasta, canned meat or fish, and juice — from a local food bank or distribution site once a month. Covered in this Article: [Toggle](#) - [Who Qualifies in 2026](#Who_Qualifies_in_2026) - [How to Apply](#How_to_Apply) - [How This Differs From SNAP](#How_This_Differs_From_SNAP) ## Who Qualifies in 2026 To qualify, you need to be at least 60 years old with household income at or below **150% of the Federal Poverty Guidelines**. That’s a change from the program’s older structure, which used a lower 130% cutoff for seniors and a separate 185% tier that had historically applied to some child caseloads in a handful of states. CSFP has shifted almost entirely to a senior-only program in recent years, and the eligibility guideline now reflects that with one uniform threshold. Here’s the 2026 income guideline, effective February 10, 2026 through June 30, 2027: Household SizeMonthly Income LimitAnnual Income Limit1$1,995$23,9402$2,705$32,4603$3,415$40,9804$4,125$49,5005$4,835$58,0206$5,545$66,5407$6,255$75,0608$6,965$83,580 For each additional household member beyond eight, add $710/month or $8,520/year. These figures are based on 150% of the [Federal Poverty Guidelines](https://savingtoinvest.com/would-you-be-considered-poor-based-on-federal-poverty-levels/), which are updated annually. Some states may ask for additional documentation or a brief nutritional risk screening — typically self-certified or confirmed by a healthcare provider — as part of the application, but the process is generally simpler than a full SNAP application. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get the latest money, tax and stimulus news directly in your inbox.* ## How to Apply CSFP is administered at the federal level through partnerships with state agencies and local nonprofits — there’s no single national application portal. To find your state’s program, search “\[your state\] CSFP” or check the [USDA’s CSFP program page](https://www.fna.usda.gov/csfp) for a list of state contacts and local distribution sites. Because availability and caseload capacity vary by state and county, some areas may have a waitlist even if you meet the income guideline — reach out to your local provider directly to ask about current openings. ## How This Differs From SNAP If you’re 60 or older and living on a fixed income, it’s worth checking eligibility for both CSFP and [SNAP](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/) — you can typically receive both at once, since they’re separate programs with separate income tests (SNAP’s gross income limit is generally 130% of the poverty line for most households). CSFP’s food box supplements what SNAP dollars can buy; it doesn’t replace it. Frequently Asked Questions QWhat is the Commodity Supplemental Food Program (CSFP)? AA USDA nutrition program that provides a free monthly box of shelf-stable food to income-eligible seniors age 60 and older, distributed through state agencies and local food banks. QWhat's the 2026 income limit for CSFP? AHousehold income at or below 150% of the Federal Poverty Guidelines - $23,940/year for a one-person household, $32,460/year for two, with $8,520 added per additional person. These limits run from February 10, 2026 through June 30, 2027. QCan I get CSFP and SNAP at the same time? AYes. They're separate programs with separate applications and income tests, and many eligible seniors receive both. QDoes CSFP still serve children? AIn most states, no - the program has shifted to a senior-only focus in recent years, though a small number of legacy child caseloads may remain in a few areas. QHow do I apply for CSFP? AThere's no single national application. Search '[your state] CSFP' or check the USDA's CSFP program page to find your state agency and local distribution sites. **Categories:** Taxes and Retirement --- ### [Tech Layoffs and the AI Shift: What Ongoing Job Cuts Mean for Your Career and Wallet](https://savingtoinvest.com/tech-layoffs-and-the-ai-shift-what-ongoing-job-cuts-mean-for-your-career-and-wallet/) **Published:** February 26, 2026 **Author:** Andy **Content:** ### Key Takeaways - Block (parent of Square and Cash App) is cutting about 40% of its workforce (~4,000 people) despite strong profits, redirecting the savings into AI investment - proof that healthy earnings no longer guarantee job security. - Apply for unemployment benefits the day after a layoff regardless of your severance size - it's funded by your own prior work and isn't means-tested against most severance packages. - Never sign a severance agreement on day one. Review it carefully and look for room to negotiate before you send it back. - A 3-month emergency fund is no longer the safe default - 6 to 9 months gives more realistic runway if AI-driven restructuring eliminates your whole team at once. - Keep emergency savings in a high-yield account for a competitive rate and same-day or next-day access. - Diversifying your income and building skills that aren't tied to one employer's tech stack is the best protection against sudden AI-driven layoffs. Imagine waking up to a notification that your company just reported record-breaking profits. You feel a sense of security until, moments later, a second alert hits: 40% of your colleagues are being let go. This isn’t a hypothetical — it’s the recent reality for thousands of employees at Block, the parent company of Square and Cash App. Jack Dorsey’s announcement marked a massive pivot toward an AI-driven workforce that every professional needs to understand. Covered in this Article: [Toggle](#) - [Why Companies Are Cutting Jobs Despite Strong Profits](#Why_Companies_Are_Cutting_Jobs_Despite_Strong_Profits) - [The Role of Generative AI in Corporate Restructuring](#The_Role_of_Generative_AI_in_Corporate_Restructuring) - [Analyzing the Financial Health Behind the Cuts](#Analyzing_the_Financial_Health_Behind_the_Cuts) - [What This Means for Tech and Finance Professionals](#What_This_Means_for_Tech_and_Finance_Professionals) - [The AI Displacement Trend Is Accelerating](#The_AI_Displacement_Trend_Is_Accelerating) - [How to Protect Your Income Against AI Automation](#How_to_Protect_Your_Income_Against_AI_Automation) - [Financial Lessons From Large Corporate Layoffs](#Financial_Lessons_From_Large_Corporate_Layoffs) - [Rebuilding Your Emergency Fund for the New Economy](#Rebuilding_Your_Emergency_Fund_for_the_New_Economy) - [Severance and Unemployment Benefits](#Severance_and_Unemployment_Benefits) - [Strategic Investing During Tech Volatility](#Strategic_Investing_During_Tech_Volatility) - [The Future of the “Lean” Company](#The_Future_of_the_%E2%80%9CLean%E2%80%9D_Company) - [Career Survival Kit: More Resources](#Career_Survival_Kit_More_Resources) ## Why Companies Are Cutting Jobs Despite Strong Profits Block’s announcement sent shockwaves through the fintech industry and the broader labor market. While the company reported robust financial health, it simultaneously confirmed plans to reduce its headcount by approximately 4,000 people. That’s roughly 40% of their workforce — a figure rarely seen outside a total company collapse. But Block isn’t collapsing; it’s aggressively restructuring to prioritize artificial intelligence over human labor. Jack Dorsey emphasized a desire to act decisively rather than dragging the process out over several years. This “rip the Band-Aid off” approach signals a fundamental shift in how tech companies view human capital in the age of automation. ## The Role of Generative AI in Corporate Restructuring Block’s leadership believes emerging technology can now handle tasks that previously required thousands of specialized workers — from coding and customer support to data analysis within Cash App. AI is no longer just a buzzword; it’s becoming a primary driver of operational efficiency for companies looking to maximize their bottom line. The integration of these tools lets firms scale without the traditional overhead of salaries, benefits, and office space. For investors, that looks like a win for margins. For the workforce, it creates a period of real uncertainty. ## Analyzing the Financial Health Behind the Cuts It’s unusual to see massive layoffs occurring alongside strong quarterly earnings. Typically, companies cut staff when revenue is declining or they’re facing a liquidity crisis. In this case, Block made the move from a position of financial strength, redirecting capital toward AI research and infrastructure. Quarterly gross profit gains across Square and Cash App, a market that often rewards this kind of “efficiency,” and a drastically lower long-term burn rate from cutting 40% of headcount all factored into the decision. ## What This Means for Tech and Finance Professionals If you work in tech, finance, or any digital-first industry, the Block layoffs are a wake-up call. The “growth at all costs” era of hiring has given way to a “lean and automated” philosophy. Even “safe” roles at successful companies are subject to displacement by software. It’s worth honestly evaluating how much of your daily output could be replicated by a large language model or an automated script — and building your career development and financial safety net around that answer. ## The AI Displacement Trend Is Accelerating Block isn’t an outlier; it’s the leading edge of a movement likely to sweep through much of corporate America. Other firms have already begun smaller-scale AI-related cuts, but Block’s 40% reduction is a significant escalation. Expect more companies to use strong earnings periods to “clean house” and automate legacy roles — funding expensive AI transitions without dipping into cash reserves. Dorsey’s comments about not wanting to “cut gradually” suggest these shifts happen overnight rather than over years, which is part of what makes the trend genuinely risky for the average worker. ## How to Protect Your Income Against AI Automation A few practical moves worth making regardless of how secure your job feels right now: - **Upskill immediately.** Focus on learning how to manage and work alongside AI systems rather than only competing against them. - **Lean into high-touch roles.** Deep emotional intelligence, complex negotiation, and physical presence remain harder for AI to replicate. - **Diversify your income.** Don’t rely on a single employer that could pivot toward AI-driven restructuring next. Building a portfolio of skills that isn’t dependent on any single employer’s tech stack is no longer optional in this environment. ## Financial Lessons From Large Corporate Layoffs When thousands of people lose their jobs at once, the priority for those affected shifts fast — from wealth building to immediate capital preservation. A “strong” company doesn’t guarantee a “safe” job, as the Block situation makes clear. Treating your career like a business — where the primary goal is maintaining a margin of safety — starts with a solid emergency fund and a clear understanding of your severance rights. ## Rebuilding Your Emergency Fund for the New Economy A three-month emergency fund used to be the standard advice. In an environment where 40% of a workforce can be eliminated in a single announcement, six to nine months is a more realistic target. That larger cushion gives you the runway to pivot into a new industry if your current one gets automated, and the power to turn down a bad offer while you wait for the right one. Keep the funds in a high-yield account earning a competitive rate, prioritize same-day or next-day liquidity, and review recurring subscriptions to lower your baseline “survival” number. ## Severance and Unemployment Benefits If you’re part of a mass layoff, review your paperwork with a clear head. Never sign a severance agreement on day one without fully understanding the terms — and whether there’s room to negotiate. Apply for unemployment benefits the next day regardless of your severance size; it’s a program funded by your own prior work and it exists as a bridge during transitions. Check whether your company offers outplacement services as part of the package — they can help with resume polishing for an AI-filtered hiring process and provide networking leads. ## Strategic Investing During Tech Volatility The human cost of layoffs like this is real, but markets often react positively to reduced expenses. Watching whether Block’s promised AI efficiency actually shows up in the numbers — without a corresponding drop in product quality — is worth doing before assuming the story is straightforwardly bullish. Keep any single fintech or AI-adjacent position appropriately sized within a diversified portfolio, watch valuation multiples on companies already pricing in high AI-driven growth expectations, and pay attention to whether savings from headcount cuts are actually being reinvested into the technology rather than just flowing to margin. ## The Future of the “Lean” Company Companies like Block are demonstrating that a global operation doesn’t require the headcount it once did. The throughline for navigating this transition is staying mobile, staying educated, and staying financially liquid — your ability to adapt to new tools faster than your peers is a genuinely valuable asset right now. ## Career Survival Kit: More Resources This is the first of several posts on navigating job security, layoffs, and the AI shift in the workplace. If this topic is relevant to you right now, these go deeper on specific angles: - [Preparing for a potential layoff: steps to take ahead of time](https://savingtoinvest.com/tips-on-preparing-for-potential-job/) - [21 signs you’re losing interest in your job (and what to do about it)](https://savingtoinvest.com/21-signs-that-you-are-losing-interest/) - [Are you a “job hugger”? 10 signs it’s time to re-evaluate your career](https://savingtoinvest.com/are-you-a-job-hugger-10-signs-its-time-to-re-evaluate-your-career/) - [Why even high-income earners aren’t far from the edge of poverty](https://savingtoinvest.com/why-even-high-income-earners-are-not/) - [Check the maximum unemployment benefit in your state if you’re laid off](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/) *[Subscribe here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) for more on navigating career security as AI reshapes the workplace.* Frequently Asked Questions QWhy is Block laying off 40% of its workforce despite strong profits? ABlock (parent of Square and Cash App) is redirecting capital toward AI investment and infrastructure, betting AI can handle work previously done by thousands of employees. CEO Jack Dorsey said he wanted to act decisively rather than cut gradually over several years. QShould I apply for unemployment benefits if I received a severance package? AYes. Apply the day after a layoff regardless of severance size - unemployment benefits are funded by your own prior work and aren't reduced dollar-for-dollar by most severance packages, though the exact rules vary by state. QHow big should my emergency fund be if my job could be automated? AThe traditional advice is 3 months of expenses. Given how quickly AI-driven layoffs can eliminate large parts of a workforce at once, 6 to 9 months gives more realistic runway to find a new role or pivot industries. QShould I sign a severance agreement right away? ANo. Review it carefully before signing, understand what you're giving up (such as the right to sue), and check whether there's room to negotiate more time, extended benefits, or a larger payout. QWhat kind of jobs are most at risk from AI-driven layoffs? ARoles heavy on repeatable tasks like coding, customer support, and data analysis are most exposed. Jobs requiring deep emotional intelligence, complex negotiation, or physical presence are comparatively harder for AI to replace. QHow can I protect my income against AI automation? AFocus on learning to work alongside AI tools rather than only competing with them, lean into high-touch skills AI struggles to replicate, and diversify your income so you're not solely dependent on one employer's technology decisions. **Categories:** Taxes and Retirement --- ### [IRS Cycle Code Decoder & Refund Date Estimator](https://savingtoinvest.com/irs-cycle-code-decoder-refund-date-estimator/) **Published:** June 18, 2026 **Author:** Andy **Content:** ✅ Updated for the Current Tax Season ## 🔍 IRS Cycle Code Decoder & Refund Date Estimator Enter your 8-digit IRS cycle code from your tax transcript to decode your processing date and estimate when your direct deposit will arrive. ### 🗂️ How to Find Your IRS Cycle Code 1. Go to **IRS.gov** and log in (or create an account using ID.me). 2. Navigate to **Tax Records → View Tax Records** and select the relevant tax year. 3. Download your **Account Transcript** (not the Return Transcript). 4. Find the line **Code 150 — Tax Return Filed**. Your 8-digit cycle code is to the right of this line. 5. Enter the 8 digits above. If Code 150 is not yet present, your return hasn’t finished initial processing. 📋 Common IRS Transcript Codes Reference (2026) CodeMeaningStatusWhat to Do 150Tax Return Filed — return received and postedNormalCheck your cycle code on this line for processing date 806W-2 / 1099 withholding credit appliedNormalNo action needed — this is your federal withholding credit 768Earned Income Tax Credit (EITC) appliedNormalEITC refunds held until mid-February per PATH Act 846Refund Issued — IRS has approved and sent your refund✓ Refund ComingDeposit arrives 1–3 business days after the date shown 570Additional Account Action Pending — temporary hold⏳ DelayedWait for Code 571 (hold released) or 971 (notice sent). Usually resolves in 2–6 weeks 571Resolved Additional Liability Pending — hold liftedHold LiftedCode 846 should follow within 1–2 weeks 810Refund Freeze — refund frozen pending review⛔ FrozenMay require identity verification. Watch for IRS letters 811Refund Freeze ReleasedFreeze LiftedProcessing should resume. Code 846 should follow 971Notice Issued — IRS has sent or will send a letter📬 Letter SentWait for the letter (CP05, 4464C, etc.) and respond if required 290Additional Tax AssessedReviewIf $0, usually routine. Non-zero means IRS adjusted your return 420Examination of Tax Return — selected for audit⚠️ AuditWait for IRS correspondence explaining audit scope 424Examination Request — return flagged for potential auditFlaggedMay or may not proceed to full audit (Code 420) → For detailed explanations see our [complete IRS transcript code guide](https://savingtoinvest.com/irs-tax-topic-error-codes-on-where-is-my-refund-wmr-and-irs2go/). ### ❓ Frequently Asked Questions What is an IRS cycle code and where is it on my transcript?An IRS cycle code is an 8-digit number on your **Account Transcript** next to **Code 150 (Tax Return Filed)**. Format: **YYYYWWDD** — first 4 digits = tax processing year, next 2 = IRS processing week, last 2 = day of the cycle. It tells you exactly when your return posted to the IRS Master File (IMF). What do the last 2 digits of my cycle code mean?**01** = Friday — Daily account **02** = Monday — Daily account **03** = Tuesday — Daily account **04** = Wednesday — Daily account **05** = Thursday — *Weekly* account (transcript updates weekly, on Thursdays) Daily accounts (01–04) post Friday through Wednesday across the IRS weekly cycle. Weekly (05) accounts post on Thursdays only. How long after my cycle code date will I get my refund?1. **Code 150 appears** (your cycle date) → return posted to IRS system 2. **Code 846 appears** → usually 1–7 business days after your cycle date 3. **Direct deposit arrives** → 1–3 business days after the Code 846 date If Code 846 is already present with a date, that date is your expected deposit — not an estimate. Most banks post funds 1 day early. My cycle date has passed but I have no Code 846 — what’s happening?Check your transcript for delay codes: • **Code 570** — Temporary hold pending additional review • **Code 810** — Refund freeze (often requires ID verification) • **Code 971** — IRS issued or will issue a notice letter • **Code 420** — Return selected for audit If none appear, your return may still be in queue. PATH Act filers (EITC/ACTC) cannot receive Code 846 before mid-February. Does IRS Where’s My Refund (WMR) show the same info as my transcript?No. WMR only shows three stages: Return Received, Return Approved, Refund Sent. Your **Account Transcript** is far more detailed and updates **days before WMR**. Transcript cycle codes and transaction codes (570, 846, etc.) appear sooner, which is why checking your transcript is the best way to track your refund. I claimed EITC or ACTC — does my cycle code date still apply?Partially. The PATH Act requires the IRS to hold all refunds including EITC or ACTC until at least **mid-February**, regardless of your cycle code. Even if your return is fully processed, Code 846 will not appear until the PATH hold is lifted. In 2026, EITC/ACTC refunds began releasing around **February 27 – March 3** for early filers. ### 🔗 Related IRS Transcript Guides on Saving to Invest - [→ 2026 IRS Cycle Code Calendar Chart & Direct Deposit Date Guide](https://savingtoinvest.com/irs-refund-cycle-code-and-dates-using-tax-transcript-to-get-master-file-information-for-your-direct-deposit-date/) - [→ 2026 IRS Tax Refund Schedule & Direct Deposit Payment Calendar](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) - [→ IRS Code 570: What It Means for Your Refund](https://savingtoinvest.com/what-is-tax-code-tc-570-on-my-irs-transcript-and-will-it-delay-my-refund-account-freeze-or-additional-account-actions-pending/) - [→ Code 846 Refund Issued: Your Direct Deposit Date Explained](https://savingtoinvest.com/code-846-refund-issued-on-your-irs-tax-transcript-what-it-means-for-your-direct-deposit-or-paper-check-refund-payment/) - [→ IRS Code 810 Refund Freeze: What It Means & What to Do](https://savingtoinvest.com/irs-tax-transcript-code-810-refund-freeze-and-what-it-means/) - [→ How to Read Your IRS Account Transcript (Full Guide)](https://savingtoinvest.com/using-your-irs-transcript-to-get-your-tax-return-and-refund-processing-status-and-key-dates/) **Disclaimer:** This tool provides *estimates only* based on typical IRS processing patterns. Actual refund dates vary based on filing method, credits claimed, IRS workload, bank processing times, and whether your return has been flagged for review. Always verify through the official [IRS Where’s My Refund tool](https://www.irs.gov/wheres-my-refund) or your Account Transcript on IRS.gov. **Categories:** Taxes and Retirement --- ### [Educator Expense Deduction 2026: $350 Above-the-Line, Plus a New OBBBA Itemized Break for Teachers](https://savingtoinvest.com/educator-expense-tax-deduction-for-teachers/) **Published:** November 19, 2011 **Author:** Andy **Content:** ### Key Takeaways - The above-the-line educator expense deduction rises to $350 per eligible educator for the 2026 tax year, up from $300 in 2025 - married couples where both spouses are eligible educators can claim up to $700 combined. - Starting with 2026, the One Big Beautiful Bill (OBBB) restores a separate itemized deduction for educator expenses, with no dollar cap and no 2% AGI floor - a break that had been suspended since 2018. - You can claim both: the $350 above-the-line deduction plus an itemized deduction for costs above that, if you itemize and your expenses run higher. - Eligible educators are K-12 teachers, instructors, counselors, principals, and aides working at least 900 hours a school year - and starting after 2025, interscholastic sports administrators and coaches qualify too. - Professional development costs - including travel, lodging, and 50% of meal costs - are newly deductible starting in 2026, along with athletic supplies for health and PE classes. Eligible K-12 teachers and school staff can deduct up to $350 in unreimbursed classroom expenses on their 2026 tax return, up from $300 in 2025. It’s a small bump, but it’s not the real news this year. The bigger change is that the [One Big Beautiful Bill (OBBB)](https://savingtoinvest.com/reconciling-trumps-big-beautiful-bill-bbb/), passed in 2025, restored a second, separate deduction for educator expenses — one that had been off the table since the 2017 Tax Cuts and Jobs Act (TCJA) suspended it. For the first time in years, teachers who spend well beyond the capped amount have a real way to deduct the rest. Covered in this Article: [Toggle](#) - [What Is the Educator Expense Deduction?](#What_Is_the_Educator_Expense_Deduction) - [Who Counts as an Eligible Educator](#Who_Counts_as_an_Eligible_Educator) - [What Expenses Qualify](#What_Expenses_Qualify) - [The New Itemized Deduction Under OBBBA](#The_New_Itemized_Deduction_Under_OBBBA) - [Two Worked Examples](#Two_Worked_Examples) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) ## What Is the Educator Expense Deduction? This is an above-the-line deduction, meaning it reduces your adjusted gross income (AGI) whether you take the [standard deduction](https://savingtoinvest.com/larger-paychecks-with-higher-tax-brackets-and-larger-standard-deduction/) or itemize. You claim it on Schedule 1 of Form 1040, and it covers unreimbursed money you spent on your classroom out of your own pocket. For 2025 returns, the cap was $300 per eligible educator ($600 if you’re married filing jointly and both spouses qualify). For 2026, that rises to $350 per educator ($700 combined for two qualifying spouses). ## Who Counts as an Eligible Educator You qualify if you’re a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide who works at least 900 hours during the school year in a school that provides elementary or secondary education under state law. Starting after 2025, the definition widens to include interscholastic sports administrators and coaches — a group that wasn’t covered before. Substitute teachers and retired educators who don’t hit the 900-hour threshold generally don’t qualify for the above-the-line deduction, though there’s a workaround for some of them below. ## What Expenses Qualify Qualifying costs include books, classroom supplies, computer equipment (and related software and services), and other supplementary materials you use directly with students. Starting in 2026, the list expands to include: - **Athletic supplies** for health or physical education classes — previously excluded - **Professional development** costs tied to your curriculum, including course and conference fees - **Travel and lodging** for that professional development, plus 50% of meal costs while traveling for it The IRS also still lists personal protective equipment, disinfectant, and other COVID-era prevention supplies as qualifying expenses, carried over from earlier guidance. See the [IRS’s educator expense deduction topic page](https://www.irs.gov/taxtopics/tc458) for the full, current list. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) — I’ll update this page as the IRS issues more guidance on the 2026 changes.* ## The New Itemized Deduction Under OBBBA This is the part most articles on this topic still miss. For tax years beginning after December 31, 2025, OBBBA restores educators’ ability to deduct unreimbursed classroom expenses as an **itemized deduction** — on top of, not instead of, the $350 above-the-line amount. Before 2018, this existed as a miscellaneous itemized deduction subject to a 2% of AGI floor, meaning only the portion of your expenses above 2% of your income counted. TCJA suspended the entire category. The restored version under OBBBA has **no 2% floor and no dollar cap** — every qualifying dollar above your $350 above-the-line claim is potentially deductible, provided you itemize rather than take the standard deduction. Whether itemizing makes sense for you depends on your total deductions relative to the standard deduction, which OBBBA also raised — worth checking against your [full tax bracket and standard deduction breakdown](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/) before deciding. If you own a home in a high-tax state, the [new 4x SALT cap](https://savingtoinvest.com/new-4x-salt-cap-how-much-will-you-actually-save/) is often the bigger factor in that itemize-or-not decision than educator expenses alone. ## Two Worked Examples **Mark** teaches fourth grade and spends about $220 a year on classroom books and supplies. He takes the standard deduction and doesn’t itemize. Mark simply claims the full $220 as part of his $350 above-the-line deduction — no itemizing required, no floor to clear. **Sarah**, a high school teacher, spends $1,400 in 2026: some supplies, a professional conference with travel and lodging, and PE equipment for her health class. She itemizes because her mortgage interest and other deductions already exceed the standard deduction. Sarah claims $350 above-the-line, then deducts the remaining $1,050 as an itemized educator expense — with no floor reducing it and no cap limiting it. ## Common Issues to Watch Out For I get questions about this deduction every fall when school supply lists go out, so a few things worth flagging: **Keep receipts for everything.** Documentation matters more now that there’s an unlimited itemized option on the table — the IRS can ask for proof of any amount you claim, not just the capped portion. **The $350/$700 cap is per educator, not per household.** If you and your spouse are both eligible educators, each of you separately claims up to $350 — you can’t shift one spouse’s unused cap to the other. **Reimbursed expenses don’t count.** If your school or district reimburses you and that reimbursement isn’t included in Box 1 of your W-2, you can’t also deduct it — that would be double-dipping. **Substitutes and part-timers under 900 hours usually don’t qualify for the above-the-line deduction.** If you itemize anyway, unreimbursed classroom purchases can sometimes be treated as a [charitable contribution](https://savingtoinvest.com/are-you-eligible-for-a-charitable-tax-deduction-worth-up-to-2000/) to your school, since public schools are government entities — talk to a tax professional about documentation requirements if this applies to you. **Don’t confuse this with education credits for your own kids.** The educator expense deduction is for what teachers spend on their classrooms, not what parents spend on their children’s education — for that, see the [AOTC and Lifetime Learning Credit rules](https://savingtoinvest.com/tax-breaks-parents-lose-when-children-grow-up-so-take-advantage-of-them-now/) instead. ## Looking Ahead: 2027 Outlook The above-the-line amount is adjusted for inflation in $50 increments when cumulative inflation justifies a bump — that’s how it moved from $300 to $350 for 2026 after sitting flat since 2022. Whether it rises again for 2027 depends on inflation data the IRS typically finalizes and announces in its annual inflation-adjustment revenue procedure, usually released in October or November of the prior year. The restored itemized deduction has no scheduled expiration in the current law, so I expect it to remain available for 2027 filers in the same unlimited form, barring further legislative changes. I’ll update this page once the IRS confirms the official 2027 figures. Frequently Asked Questions QHow much is the educator expense deduction for 2026? A$350 per eligible educator, up from $300 for 2025. Married couples where both spouses are eligible educators can claim up to $700 combined. QCan I claim both the above-the-line deduction and the itemized deduction? AYes. Starting in 2026, you can claim the $350 above-the-line deduction plus a separate itemized deduction for any additional qualifying expenses, if you itemize. QDo I have to itemize to claim any educator expense deduction? ANo. The $350 above-the-line deduction is available whether you itemize or take the standard deduction. Only the additional amount above $350 requires itemizing. QWho qualifies as an eligible educator? AK-12 teachers, instructors, counselors, principals, and aides working at least 900 hours a school year. Starting after 2025, interscholastic sports administrators and coaches also qualify. QWhat expenses newly qualify starting in 2026? AAthletic supplies for health/PE classes, professional development course and conference fees, and related travel, lodging, and 50% of meal costs. QI'm a substitute teacher and don't meet the 900-hour requirement - can I deduct anything? AYou generally don't qualify for the above-the-line deduction, but if you itemize, unreimbursed classroom purchases may sometimes qualify as a charitable contribution to your public school. QIs there a 2% of AGI floor on the new itemized deduction, like there was before 2018? ANo. OBBBA restored the itemized educator expense deduction without the old 2% AGI floor and without a dollar cap. **Categories:** Taxes and Retirement **Tags:** educator expense deduction, IRS, Itemized Deductions, OBBBA, tax deductions, teachers --- ### [IRS Transcript Codes 290 and 291 Explained: Additional Tax Assessed or Refund Adjustment](https://savingtoinvest.com/irs-tax-transcript-code-290-and-291-additional-tax-assessed-and-update-or-return-processing-and-refund-payment/) **Published:** September 2, 2022 **Author:** Andy **Content:** ### Key Takeaways - Transaction code 290 ('Additional Tax Assessed') means the IRS has finished reviewing your return and made a determination - it's no longer on hold, whether or not you actually owe more. - A code 290 with a $0 amount is common and generally good news: it means a hold was lifted and no additional tax is due. - A code 290 with a dollar amount greater than $0 means the IRS determined you owe more tax; you'll receive a notice (shown as code 971) explaining the assessment and your options. - Code 291 ('Reduced or Removed Prior Tax Assessed') shows a negative amount and means a prior assessment was lowered - often followed by code 846 if that results in a refund. - Neither code by itself tells you why the change happened; the notice that accompanies it (or the specific dollar amount) has the real explanation. If you’ve been waiting on your tax return processing and refund status for a while, you may see transaction codes 290 and 291 appear on your free [IRS tax transcript](https://savingtoinvest.com/will-ordering-an-irs-tax-transcript-help-me-find-out-when-ill-get-my-refund/) once the IRS moves your case forward. Code 290 is generally accompanied by the line “Additional tax assessed,” along with a [cycle code](https://savingtoinvest.com/irs-cycle-code-decoder-refund-date-estimator/), date, and dollar amount. Seeing “additional tax assessed” can trigger a moment of panic, especially if you filed an [amended return](https://savingtoinvest.com/wheres-my-amended-tax-return-and-when-will-i-get-my-refund/) or have already experienced processing delays — but the code itself is system-generated and routine. Covered in this Article: [Toggle](#) - [Do I Owe Taxes or Am I Getting a Refund If I See Code 290?](#Do_I_Owe_Taxes_or_Am_I_Getting_a_Refund_If_I_See_Code_290) - [What Does Code 291 Mean?](#What_Does_Code_291_Mean) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## Do I Owe Taxes or Am I Getting a Refund If I See Code 290? Code 290 is, in a sense, good news to see: it means your return has been processed and reviewed, and the IRS has reached a determination — it’s no longer sitting on hold. TC 290 stands for “Additional Tax Assessed,” but it does **not** automatically mean you owe money. The code frequently appears with a **$0** amount, which simply means any hold on your account has been lifted and no additional action is required from you. If the amount is **greater than $0**, the IRS has determined you owe additional tax, and you’ll receive a notice or letter in the mail explaining the assessment and your payment or appeal options. This notice typically shows up as **code 971** on your transcript alongside the 290. If you agree with the IRS’s determination, pay by the due date on the notice to avoid additional [penalties and interest](https://savingtoinvest.com/should-you-file-a-tax-return-or-file-a-tax-extension/) piling up. If you disagree, the notice will explain your appeal rights and deadline. ## What Does Code 291 Mean? If you’re due a refund or an adjustment following the IRS’s review (code 290), you’ll typically see **code 291 — Reduced or Removed Prior Tax Assessed** — with the amount shown as a negative number. This is often followed by [code 846](https://savingtoinvest.com/code-846-refund-issued-on-your-irs-tax-transcript-what-it-means-for-your-direct-deposit-or-paper-check-refund-payment/) once the refund is actually issued. If you had an existing balance due, code 291 can also partially or fully reduce that liability instead of triggering a refund. In some cases, if your refund was delayed due to IRS processing backlogs, you may also receive an interest payment on the delayed amount — shown separately as **code 776** on your transcript. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) — I’ll update this page if the IRS changes how these codes are reported.* ## Common Issues to Watch Out For **Panicking over “additional tax assessed” with no dollar amount.** A $0 assessment is common and simply means a hold was lifted — check the actual dollar amount before assuming you owe anything. **Assuming code 290 means your case is fully closed.** It means the IRS reached a determination, but if a 971 notice follows, you still need to read and respond to that notice. **Missing the connection between 291 and 846.** If you see code 291 (a reduction) but no code 846 yet, your refund hasn’t been issued — check back for 846 to confirm the payment is actually on its way. **Confusing 290/291 with an audit notice.** These codes reflect routine return processing and reconciliation, not necessarily an [audit](https://savingtoinvest.com/irs-audit-triggers-and-red-flags-for/) — most 290/291 activity is automated matching against W-2 and [1099](https://savingtoinvest.com/1099-k-explained-everything-you-need-to-know-about-this-tax-form/) data, not a manual examination. **Not reading the accompanying notice.** The transcript code alone doesn’t explain why the adjustment happened — the notice (code 971) or the specific dollar amount tied to the 290/291 entry has that detail. Frequently Asked Questions QDoes code 290 on my transcript mean I owe more taxes? ANot necessarily. Code 290 means the IRS finished reviewing your return and made a determination. If the amount shown is $0, no additional tax is due - it just means a hold was lifted. QWhat does code 291 mean on my IRS transcript? ACode 291 means a prior tax assessment was reduced or removed, shown as a negative amount. It often precedes code 846 (Refund Issued) if the reduction results in money coming back to you. QI see code 290 with $0 - what does that mean? AIt generally means the IRS lifted a processing hold on your account and determined no additional tax is owed. No further action is typically required from you. QWhat is code 971 and how does it relate to code 290? ACode 971 indicates the IRS sent you a notice or letter, often appearing alongside a code 290 that shows a dollar amount greater than $0 - the notice explains the assessment and your options. QHow long after code 290 or 291 will I get my refund? AWatch for code 846 (Refund Issued), which shows the actual payment date. Code 290 or 291 alone doesn't guarantee a specific refund timeline. QCan code 776 appear with codes 290 or 291? AYes. Code 776 reflects interest the IRS pays you if your refund was delayed due to processing backlogs - it's separate from the tax assessment or reduction shown by 290/291. **Categories:** Taxes and Retirement --- ### [IRS Offer in Compromise 2026: How to Actually Settle Tax Debt for Less Than You Owe](https://savingtoinvest.com/settle-your-irs-debt-with-a-offer-in-compromise/) **Published:** February 3, 2023 **Author:** Andy **Content:** ### Key Takeaways - An Offer in Compromise (OIC) lets you settle federal tax debt for less than the full amount owed, but the IRS only accepts offers it believes reflect what it could realistically collect from you otherwise. - The application fee is $205, but you can request a waiver if your income is at or below 250% of the federal poverty guidelines for your household size. - Average processing takes around 8 months for straightforward cases, but can run past a year for offers involving multiple tax years, business debts, or disputed asset values. - You must be current on all required tax filings and estimated payments for the current year before the IRS will even consider your offer. - If accepted, you generally must pay the agreed amount within 24 months and stay compliant with tax law for 5 years - falling behind again can void the agreement and revive the full original debt. An Offer in Compromise (OIC) is an IRS program that lets you settle tax debt for less than the full amount owed — but it’s not a shortcut for people who simply don’t want to pay. The IRS only accepts offers that reflect what it believes it could realistically collect from you through other means. Covered in this Article: [Toggle](#) - [How Much It Costs to Apply](#How_Much_It_Costs_to_Apply) - [How the IRS Decides Whether to Accept Your Offer](#How_the_IRS_Decides_Whether_to_Accept_Your_Offer) - [How Long It Actually Takes](#How_Long_It_Actually_Takes) - [What Happens If Your Offer Is Accepted](#What_Happens_If_Your_Offer_Is_Accepted) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Alternatives Worth Considering First](#Alternatives_Worth_Considering_First) ## How Much It Costs to Apply The application fee is **$205**, submitted with [Form 656](https://www.irs.gov/pub/irs-pdf/f656.pdf) (Offer in Compromise Booklet). Low-income taxpayers can request a fee waiver by completing the Low Income Certification section of the form. You qualify for the waiver if your income is at or below **250% of the federal poverty guidelines** for your household size. Using [2026 guidelines](https://savingtoinvest.com/would-you-be-considered-poor-based-on-federal-poverty-levels/), that works out to roughly $39,900 for a single person or $82,500 for a family of four — check the exact figure for your household size before assuming you qualify. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) — I’ll update this page if the IRS adjusts the application fee or waiver thresholds.* ## How the IRS Decides Whether to Accept Your Offer The IRS uses a two-part test centered on your **Reasonable Collection Potential (RCP)** — essentially, what the IRS believes it could collect from you through your income, assets, and future earning potential if it pursued the debt through normal collection channels. If your offer amount is equal to or greater than your RCP, the IRS is generally required to consider it. If your offer falls short of your RCP, expect a rejection or counteroffer. To even be considered, you must: - Have filed all required tax returns - Be current on estimated tax payments for the current year - Not be in an open bankruptcy proceeding The [Treasury’s OIC pre-qualifier tool](https://irs.treasury.gov/oic%5Fpre%5Fqualifier/) gives a rough sense of whether your financial situation might support an accepted offer before you spend time on a full application. ## How Long It Actually Takes Set realistic expectations here: the IRS’s own target is 6 to 12 months, and current data shows average processing running around **8 months** for straightforward cases. More complex situations — multiple tax years, business tax debt, or disputed asset valuations — can extend well past a year, occasionally up to 24 months for the full investigation. The initial screening phase alone typically takes 30 to 45 days before the IRS even assigns your file for detailed review. ## What Happens If Your Offer Is Accepted You’ll need to pay the agreed amount either in a lump sum or through a structured payment plan, generally completed within **24 months** of acceptance. You’re also required to stay fully compliant with all tax filing and payment obligations for **5 years** after acceptance. If you fall behind on filings or payments during that 5-year window, the IRS can void the agreement entirely — reviving the original tax debt, including any penalties and interest that would have accrued if the OIC had never been accepted. ## Common Issues to Watch Out For **Assuming any hardship qualifies you for an OIC.** The IRS specifically evaluates your ability to pay based on income, assets, and future earning potential — significant financial hardship doesn’t automatically mean a low offer will be accepted. **Not staying current during the review process.** Falling behind on current-year taxes while your offer is pending is one of the most common reasons applications get rejected outright. **Underestimating how long the process takes.** Don’t assume a quick resolution — budget for 8 months at minimum, longer if your situation involves multiple tax years or business debt. **Overlooking simpler alternatives first.** If you can pay your balance within a reasonable timeframe, an [IRS installment agreement](https://savingtoinvest.com/tax-deadline-tips-filing-late-requesting-an-extension-installment-plans-and-refund-status/) is often faster to set up and doesn’t require the extensive financial disclosure an OIC does. **Not understanding state tax debt is separate.** Many state tax agencies run their own, entirely separate debt settlement or compromise programs — check your state’s Department of Revenue if you also owe state taxes. ## Alternatives Worth Considering First If you’re dealing with an [IRS notice](https://savingtoinvest.com/irs-tax-notices-for-adjustments-due-to-tax-liability-or-refund-calculation-errors-cp11-cp12-cp13-and-cp14/) about a balance due and aren’t sure an OIC is the right fit, a standard installment agreement, a temporary “currently not collectible” status, or simply [requesting an extension to file or pay](https://savingtoinvest.com/should-you-file-a-tax-return-or-file-a-tax-extension/) are all faster and less document-intensive options worth ruling out first. An OIC generally makes the most sense when your financial situation is unlikely to meaningfully improve and full repayment genuinely isn’t realistic. If you’re struggling to reach anyone at the IRS to discuss your options, see my guide on [getting a live IRS agent on the phone](https://savingtoinvest.com/no-tax-refund-after-21-days-tips-on-contacting-the-irs/) rather than waiting indefinitely on hold. Frequently Asked Questions QHow much does it cost to apply for an IRS Offer in Compromise? A$205, submitted with Form 656. Low-income taxpayers whose income is at or below 250% of the federal poverty guidelines can request a fee waiver. QHow long does an Offer in Compromise take to process? AThe IRS targets 6 to 12 months, with straightforward cases averaging around 8 months. Complex cases involving multiple tax years or business debt can take up to 24 months. QWhat does the IRS consider when deciding whether to accept an offer? AYour Reasonable Collection Potential (RCP) - an assessment of what the IRS believes it could realistically collect from your income, assets, and future earning potential. Your offer generally needs to meet or exceed this amount. QWhat happens after my Offer in Compromise is accepted? AYou must pay the agreed amount, typically within 24 months, and stay fully compliant with all tax filing and payment obligations for 5 years. Falling behind during that period can void the agreement. QDo I need to be current on my taxes to apply for an OIC? AYes. You must have filed all required returns and be current on estimated payments for the current year before the IRS will consider your offer. QIs an Offer in Compromise the only way to settle IRS debt for less? ANo. Installment agreements, temporary 'currently not collectible' status, and penalty abatement can all reduce what you actually pay or when you pay it, often with less documentation than a full OIC application requires. **Categories:** Taxes and Retirement --- ### [Can You Deduct the Sales Tax on a Car? Yes — And the 2026 SALT Cap Increase Changes the Math](https://savingtoinvest.com/can-i-claim-the-sales-tax-on-my-new-or-used-car-purchase/) **Published:** October 17, 2016 **Author:** Andy **Content:** ### Key Takeaways - You can deduct the sales tax paid on a new or used car purchase, but only if you itemize and choose to deduct sales tax instead of state income tax withheld - you can't claim both. - OBBBA raised the SALT (state and local tax) deduction cap to $40,000 for 2026 (up from $10,000), making itemizing - and this deduction - worth a second look for far more households than in recent years. - The SALT cap increase phases down for higher earners: it starts shrinking once your MAGI passes $505,000 in 2026, bottoming back out at the old $10,000 cap. - Residents of the nine states with no personal income tax get the most value from this deduction, since there's no income-tax alternative to compare it against. - Business owners can separately deduct up to $32,000 of a qualifying heavy SUV's cost in 2026 under Section 179, on top of what's available for personal sales tax deductions. Sales tax paid on a car purchase is a real, often-overlooked deduction — but it only applies if you itemize, and it comes with a catch that trips people up: you can deduct sales tax paid **or** state income tax withheld, not both. For years, this deduction mattered less than it should have because the $10,000 SALT (state and local tax) cap made itemizing pointless for most households. That changed in 2026. Covered in this Article: [Toggle](#) - [The 2026 SALT Cap Increase Changes the Math](#The_2026_SALT_Cap_Increase_Changes_the_Math) - [Who Actually Benefits](#Who_Actually_Benefits) - [How to Actually Claim It](#How_to_Actually_Claim_It) - [Section 179: The Business Vehicle Option](#Section_179_The_Business_Vehicle_Option) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## The 2026 SALT Cap Increase Changes the Math The One Big Beautiful Bill (OBBB) raised the SALT deduction cap to **$40,000** for single filers and married couples filing jointly ($20,000 if married filing separately) starting with the 2026 tax year — a major jump from the $10,000 cap that had applied since 2018. This matters directly for the car sales tax deduction because SALT includes state income tax, property tax, **and** sales tax combined under one umbrella cap. With that cap now four times higher, far more households who previously hit the ceiling with property tax alone now have room to add a large one-time purchase like a car. The higher cap does phase down for high earners: it starts shrinking once your modified adjusted gross income (MAGI) passes $505,000 in 2026, eventually bottoming out at the original $10,000 cap for the highest earners. It’s also scheduled to revert to $10,000 starting in 2030 unless Congress acts again. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) — I’ll update this page if Congress makes further changes to the SALT cap before 2030.* ## Who Actually Benefits To claim this deduction, two things have to be true: - **You itemize your deductions** rather than taking the [standard deduction](https://savingtoinvest.com/larger-paychecks-with-higher-tax-brackets-and-larger-standard-deduction/) — with the 2026 standard deduction at $17,550 (single) and $35,100 (married filing jointly, including the temporary OBBBA bonus), your total itemized deductions need to clear that bar first. - **Your sales tax paid exceeds your state income tax withheld** — this is an either/or choice, not a stack. This deduction is far more valuable if you live in one of the [nine states with no personal income tax](https://savingtoinvest.com/which-state-taxes-matter-to-you/) — Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming — since there’s no income tax withholding to compare against. In income-tax states like California or New York, sales tax paid on a car rarely beats a full year of state income tax withholding, so this deduction mainly helps residents of no-income-tax states or people who made an unusually large vehicle purchase. ## How to Actually Claim It You’ll need a sales tax receipt showing the amount paid, since the IRS can request documentation if you’re audited — normally you’re not notified of an audit until up to three years after filing. The [IRS Sales Tax Deduction Calculator](https://www.irs.gov/individuals/sales-tax-deduction-calculator) walks through a short questionnaire to help determine whether the sales tax or income tax deduction is the better choice for your situation. Have your W-2, sales receipts for any major purchases (vehicle, boat, aircraft, home), and prior addresses for the tax year on hand before starting. If you financed the purchase, it’s also worth checking the separate [auto loan interest deduction](https://savingtoinvest.com/understanding-the-auto-interest-tax-deduction-for-new-cars-between-2025-to-2028/) — a distinct OBBBA provision from the sales tax deduction discussed here, with its own eligibility rules around where the vehicle was assembled and your income level. ## Section 179: The Business Vehicle Option If you’re self-employed or run a small business, Section 179 offers a separate and often larger deduction than the personal sales tax break above. It lets you immediately deduct the purchase price of qualifying business equipment — including vehicles — rather than depreciating the cost over several years. **For 2026, the maximum Section 179 deduction on a qualifying heavy SUV (rated 6,001–14,000 pounds) is $32,000.** Some heavier work vehicles, like those with a fully enclosed cargo area or seating for more than nine people, can qualify for an even larger deduction outside that specific SUV cap. To qualify, the vehicle must be used for business purposes more than 50% of the time, and self-employed filers report the deduction on [Schedule C](https://savingtoinvest.com/schedule-c-form-1040-reporting-business-income/) via Form 4562. Any remaining cost beyond the Section 179 limit may also qualify for 100% bonus depreciation on vehicles placed in service after January 19, 2025. ## Common Issues to Watch Out For **Trying to claim both sales tax and income tax.** These are mutually exclusive — pick whichever is larger for your situation, don’t attempt to combine them. **Forgetting the SALT cap includes property tax too.** If you already have significant property tax, your remaining room under the $40,000 cap for sales tax may be smaller than you’d expect — add up all your SALT categories together before assuming a car purchase will fit. **Assuming this deduction helps if you take the standard deduction.** It doesn’t — you must itemize to benefit at all, and with standard deductions now over $17,000/$35,000, many households still come out ahead without itemizing. **Mixing up the personal sales tax deduction with Section 179.** These are two entirely separate provisions with different rules — Section 179 requires business use and is claimed on Schedule C, not as part of your personal itemized deductions. **Not keeping the sales tax receipt.** Without documentation, you can’t substantiate the deduction if audited — keep it with your other tax records for at least three years. Frequently Asked Questions QCan I deduct sales tax on a car I bought for personal use? AYes, if you itemize your deductions and choose to deduct sales tax paid instead of state income tax withheld - you can't claim both on the same return. QHow did the 2026 SALT cap change affect this deduction? AThe SALT cap rose from $10,000 to $40,000 for most filers in 2026, giving many more households room to benefit from itemizing SALT deductions, including car sales tax, than in recent years. QWhich states benefit most from the car sales tax deduction? AThe nine states with no personal income tax - Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming - since residents there have no income tax withholding to compare against. QWhat is the Section 179 deduction for business vehicles in 2026? AUp to $32,000 for a qualifying heavy SUV (6,001-14,000 pounds) used more than 50% for business. Certain other heavy vehicles can qualify for a larger deduction outside that specific cap. QDoes the SALT cap increase apply to everyone? ANo. It phases down for higher earners starting at $505,000 MAGI in 2026, eventually returning to the original $10,000 cap for the highest-income filers. It's also scheduled to revert to $10,000 for all filers starting in 2030. QCan I claim both the sales tax deduction and the auto loan interest deduction? AYes, these are separate benefits. The sales tax deduction is an itemized deduction claimed if you itemize; the auto loan interest deduction is a distinct above-the-line OBBBA provision with its own income and vehicle-assembly requirements. **Categories:** Taxes and Retirement --- ### [The $1,000 Charitable Deduction for Non-Itemizers Is Now Law — Here's How OBBBA Changed Giving in 2026](https://savingtoinvest.com/are-you-eligible-for-a-charitable-tax-deduction-worth-up-to-2000/) **Published:** June 19, 2025 **Author:** Andy **Content:** ### Key Takeaways - Starting with the 2026 tax year, non-itemizers can deduct up to $1,000 (single) or $2,000 (married filing jointly) in cash gifts to qualifying charities - this is now enacted, permanent law under the One Big Beautiful Bill (OBBB), not a pending proposal. - The deduction is above-the-line, meaning you get it in addition to the standard deduction, not instead of it. - Only cash contributions to 501(c)(3) public charities qualify - gifts to donor-advised funds, most private foundations, and non-cash donations (clothing, stock, vehicles) don't count toward this specific deduction. - Itemizers face a new wrinkle: only charitable giving above 0.5% of your AGI is deductible starting in 2026, so the first slice of your giving each year no longer counts. - The 60% of AGI limit on deducting cash gifts to public charities is now permanent, which mainly matters to higher-income donors giving large amounts in a single year. Non-itemizers can now deduct charitable cash gifts on their federal return for the first time since the 2017 Tax Cuts and Jobs Act (TCJA) nearly doubled the standard deduction and pushed most filers out of itemizing altogether. This isn’t a proposal working its way through Congress anymore — it’s enacted law. The [One Big Beautiful Bill (OBBB)](https://savingtoinvest.com/reconciling-trumps-big-beautiful-bill-bbb/), passed in 2025, created a new above-the-line charitable deduction that took effect with the 2026 tax year, along with a new limitation for itemizers that’s easy to miss. Covered in this Article: [Toggle](#) - [The New Deduction for Non-Itemizers](#The_New_Deduction_for_Non-Itemizers) - [The New Floor for Itemizers](#The_New_Floor_for_Itemizers) - [Two Worked Examples](#Two_Worked_Examples) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Smart Giving Strategies That Still Work](#Smart_Giving_Strategies_That_Still_Work) ## The New Deduction for Non-Itemizers If you take the [standard deduction](https://savingtoinvest.com/larger-paychecks-with-higher-tax-brackets-and-larger-standard-deduction/) — which is the large majority of filers since TCJA — you can now separately deduct: - **Up to $1,000** in cash charitable contributions if you’re a single filer - **Up to $2,000** in cash charitable contributions if you’re married filing jointly This is an above-the-line deduction, so it reduces your taxable income on top of your standard deduction — it’s not an either/or choice. The amounts are fixed in the law and won’t adjust for inflation over time, unlike many other tax figures. **Only cash counts.** Contributions of clothing, household goods, vehicles, or appreciated stock don’t qualify for this specific deduction, even though they may still be deductible if you itemize separately. Gifts to donor-advised funds and most private foundations are also excluded — the money has to go directly to a qualifying 501(c)(3) public charity. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) — I’ll update this page if the IRS issues additional guidance on qualifying organizations or documentation.* ## The New Floor for Itemizers If you do itemize, OBBBA added a limitation that reduces the value of charitable giving for anyone still itemizing in 2026: **only the portion of your total charitable contributions above 0.5% of your AGI is deductible.** In practice, this means the first slice of what you give each year — 0.5% of your adjusted gross income — no longer counts toward your itemized deduction. Above that floor, the existing rules apply as before, including the 60% of AGI limit on cash gifts to public charities, which OBBBA made permanent rather than letting it revert to 50% as originally scheduled. This floor applies before the percentage limits, not after — so the math runs floor first, then the AGI percentage ceiling on whatever remains. ## Two Worked Examples **The Ramirez family** takes the standard deduction and donates $1,500 a year to their local animal shelter. Before 2026, that $1,500 didn’t reduce their tax bill at all since they weren’t itemizing. Starting in 2026, they can deduct the first $1,500 (the exact limit for their filing status is $2,000 married) directly, on top of their standard deduction. In the 22% [tax bracket](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/), that’s roughly $330 back in their pocket for giving they were already doing. **Devon**, a single filer with $400,000 in AGI, itemizes and donates $20,000 to public charities in 2026. Under the new 0.5% floor, the first $2,000 of that (0.5% of his AGI) isn’t deductible at all. The remaining $18,000 is potentially deductible, subject to the 60% of AGI cap — which doesn’t bind him at this giving level. Devon’s effective deductible amount is $2,000 lower than it would have been under the old rules, even though nothing else about his itemizing changed. ## Common Issues to Watch Out For I get questions about this one a lot now that it’s actually in effect, so a few things worth flagging: **Don’t assume non-cash gifts qualify.** If you’re planning to claim the non-itemizer deduction, make sure the gift is cash (or cash-equivalent, like a check or card payment) — donated goods and appreciated securities don’t count toward this specific $1,000/$2,000 break. **Keep documentation regardless of itemizing status.** For any single cash donation of $250 or more, you need a written acknowledgment from the charity, even if you’re claiming the simpler non-itemizer deduction. Bank or credit card statements work for smaller gifts. **Donor-advised funds don’t qualify for the non-itemizer deduction.** If most of your giving goes through a DAF, this new break won’t apply to those contributions — only cash given directly to a qualifying public charity counts. **Itemizers shouldn’t assume their charitable deduction is unchanged.** The 0.5% AGI floor is new for 2026 and easy to overlook if you’re using last year’s numbers as a mental baseline — run the math again rather than assuming your full contribution amount is deductible. **High-income donors giving large one-time gifts should watch the 60% AGI cap.** It’s now permanent, but it can still bind if you’re making an unusually large single-year gift, such as donating appreciated stock ahead of a sale. If you’re 70½ or older, a [Qualified Charitable Distribution from your IRA](https://savingtoinvest.com/required-minimum-distributions-rmd-rules-and-deadlines/) is worth considering instead, since QCDs reduce your taxable income directly without running through either the AGI floor or the itemizing decision at all. ## Smart Giving Strategies That Still Work **Donating appreciated stock** remains one of the most efficient ways to give for itemizers: you deduct the fair market value and avoid [capital gains tax](https://savingtoinvest.com/capital-gains-tax-short-and-long-term-rates-plus-other-factors-to-consider/) on the appreciation, though it still counts toward the new 0.5% floor. **Bunching donations** — combining two or more years of giving into a single tax year — can still make sense if you’re close to the standard deduction threshold, since it can push you over into itemizing territory in the “bunch” year. A donor-advised fund is a common tool for this, though remember DAF contributions don’t qualify for the separate non-itemizer deduction if you’re not itemizing that year. **Qualified Charitable Distributions** remain unaffected by either OBBBA change discussed here — they’re a distinct mechanism that reduces taxable income directly rather than working through the deduction system at all. Frequently Asked Questions QIs the $1,000/$2,000 charitable deduction for non-itemizers actually law now, or still a proposal? AIt's enacted law. The One Big Beautiful Bill was signed in 2025, and this deduction took effect starting with the 2026 tax year. QDo I need to itemize to claim the new charitable deduction? ANo - this deduction is specifically for people who take the standard deduction. You claim it in addition to your standard deduction, not instead of itemizing. QWhat types of donations qualify for the $1,000/$2,000 deduction? AOnly cash contributions to qualifying 501(c)(3) public charities. Non-cash donations (clothing, vehicles, appreciated stock) and gifts to donor-advised funds or most private foundations don't qualify for this specific deduction. QWhat is the new 0.5% AGI floor for itemizers? AStarting in 2026, only charitable contributions above 0.5% of your adjusted gross income are deductible if you itemize. For example, with $200,000 AGI, the first $1,000 of giving each year isn't deductible. QIs the 60% of AGI limit on cash charitable deductions permanent now? AYes. OBBBA made the 60%-of-AGI limit for cash gifts to public charities permanent, rather than letting it revert to 50% as originally scheduled under prior law. QAre donor-advised fund contributions eligible for the new non-itemizer deduction? ANo. The non-itemizer deduction only applies to cash given directly to a qualifying public charity - gifts routed through a donor-advised fund don't qualify. **Categories:** Taxes and Retirement --- ### [SSI Maximum Payment Amounts for 2026, Plus the 2027 Outlook](https://savingtoinvest.com/ssi-maximum-payment-amounts/) **Published:** September 11, 2013 **Author:** Andy **Content:** ### Key Takeaways - The 2026 SSI maximum is $994/month for an individual and $1,491/month for a couple - up 2.8% from 2025 - SSI is funded by general Treasury funds, not the Social Security trust fund, so it isn't affected by the trust fund depletion timeline that applies to retirement benefits - Work income reduces your payment roughly $1 for every $2 earned; non-work income (pensions, unemployment, disability benefits) reduces it closer to $1 for every $1 - Living in someone else's home without paying your fair share of food and shelter can cut your payment by up to $351.33/month - Resource limits are $2,000 for individuals and $3,000 for couples - unchanged for years and not indexed to inflation - SSA now automatically verifies your bank account balances directly with financial institutions (not just what you self-report) on nearly all new SSI approvals, reopened claims, and appeal reversals as of April 2026 - SSA named its first-ever lead executive for SSI and established a dedicated SSI Improvement Office in 2026, aimed at faster, more accurate service - Many states add a supplemental payment on top of the federal amount, which doesn't reduce your SSI The maximum federal Supplemental Security Income (SSI) payment for 2026 is **$994 a month for an individual** and **$1,491 a month for a couple**, confirmed by the Social Security Administration’s 2.8% cost-of-living adjustment (COLA). That’s up from $967 and $1,450 in 2025. Most people don’t actually get the maximum. Your income, living situation, and what you own all reduce the number below that ceiling. Here’s how the math actually works, plus two service changes SSA rolled out in 2026 that are worth knowing about if you’re applying or already receiving SSI. Covered in this Article: [Toggle](#) - [What Is SSI](#What_Is_SSI) - [2026 SSI Maximum Payment Amounts](#2026_SSI_Maximum_Payment_Amounts) - [How Income Reduces Your Payment](#How_Income_Reduces_Your_Payment) - [Living Arrangements Can Lower Your Payment](#Living_Arrangements_Can_Lower_Your_Payment) - [Resource Limits](#Resource_Limits) - [SSA Now Verifies Your Bank Balances Directly (AFI)](#SSA_Now_Verifies_Your_Bank_Balances_Directly_AFI) - [Could the $2,000 Asset Limit Finally Change?](#Could_the_2000_Asset_Limit_Finally_Change) - [State Supplements](#State_Supplements) - [SSA’s New SSI Improvement Office](#SSAs_New_SSI_Improvement_Office) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## What Is SSI SSI provides monthly payments to people with limited income and resources who are 65 or older, blind, or have a qualifying disability. Unlike [Social Security retirement or disability benefits](https://savingtoinvest.com/retirement-ages-and-eligilbility-rules-for-receiving-401k-ira-and-social-security-beneifts/), it isn’t based on your work history or what you paid into the system. It’s administered by the Social Security Administration but funded by general Treasury revenue rather than Social Security payroll taxes. That distinction matters: SSI isn’t exposed to the Social Security trust fund’s 2032 depletion timeline the way retirement benefits are. For the full rundown straight from the source, the SSA publishes [Understanding SSI](https://www.ssa.gov/pubs/EN-05-11000.pdf), its official plain-language guide to the program. ## 2026 SSI Maximum Payment Amounts YearCOLAIndividual (Monthly)Couple (Monthly)20238.7%$914$1,37120243.2%$943$1,41520252.5%$967$1,45020262.8%$994$1,491 *Source: [Social Security Administration](https://www.ssa.gov/oact/cola/SSIamts.html)* These are federal maximums before any reductions. Your actual monthly amount depends on your countable income, living arrangement, and (for couples) how eligibility is split between spouses. ## How Income Reduces Your Payment The SSA treats work income and non-work income differently: - **Work income** (a job, self-employment, or any activity that earns money): your SSI payment drops by roughly **$1 for every $2** you earn, after certain exclusions. - **Non-work income** (pensions, unemployment payments, disability benefits, and similar): your payment drops closer to **$1 for every $1** received. If you live with a spouse, their income can affect your payment too. Children on SSI who live with a parent may see their payment reduced based on the parent’s income. ## Living Arrangements Can Lower Your Payment If you live in someone else’s household and don’t pay your fair share of food and shelter costs, the SSA can reduce your payment by up to **$351.33 a month**. This is one of the most commonly misunderstood SSI rules — moving in with family to save money can unintentionally shrink the benefit. ## Resource Limits To qualify for SSI, your countable resources — things like bank account balances and vehicles beyond what’s excluded — can’t exceed: - **$2,000** for an individual - **$3,000** for a couple If a parent is applying on behalf of a child, these limits increase by $2,000. Unlike the payment amounts, these resource limits are set by statute and haven’t been adjusted for inflation in years, which is a frequent source of frustration for people I hear from. **Linda**, a 68-year-old widow living alone with no other income, would qualify for the full $994 individual maximum in 2026 as long as her countable resources stay under $2,000. **James**, who lives with his adult daughter and doesn’t pay rent or contribute to groceries, would likely see his payment reduced under the in-kind support and maintenance rule — potentially by up to $351.33 a month — even though his income otherwise qualifies him for the full amount. *[Subscribe here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) and I’ll update this page as soon as the 2027 SSI amount is confirmed.* ## SSA Now Verifies Your Bank Balances Directly (AFI) Here’s a real change worth knowing about if you’re applying for SSI or already getting it: SSA no longer relies mainly on what you self-report about your bank accounts. Through its **Access to Financial Institutions (AFI)** tool, SSA automatically requests and verifies your bank account balances directly with financial institutions — and it can detect accounts you didn’t disclose using what it calls geographic searches, running up to 10 per person per review. This isn’t new technology, but SSA significantly expanded when and how often it’s used in 2026. As of April 2026, SSA’s policy guidance (known internally as EM-25046 REV) expanded the financial-institution verification requirement to **nearly all new SSI claim allowances, claim reopenings, and appeal reversals that establish initial eligibility** — not just a subset of cases as before. SSA’s own July 2026 report to Congress specifically credited the expanded AFI tool with catching improper payments earlier and helping avoid large overpayments building up before anyone notices. The push behind this: an SSA Office of Inspector General report found roughly 198,960 recipients had received a combined **$718 million** in improper payments tied to undisclosed financial accounts — money in accounts that weren’t reported and would have pushed the recipient over the resource limit. **What this means practically:** if you have a bank account you didn’t list on your application or at your last redetermination, don’t count on it staying invisible. AFI is designed specifically to catch that. If you’re not sure whether an account would put you over the $2,000/$3,000 resource limit, it’s worth reviewing before your next application or redetermination rather than after SSA’s system flags a mismatch and opens an overpayment case. ## Could the $2,000 Asset Limit Finally Change? The $2,000 individual / $3,000 couple resource limit hasn’t been adjusted since 1989. If it had kept pace with inflation, it would be worth more than $5,000 today — while median rent has more than doubled since the limit was last set. Advocates call it one of the most punishing parts of the SSI program: save a little too much toward a security deposit or a car repair, and you can lose your benefit entirely. Two bills in Congress would raise it. The **SSI Savings Penalty Elimination Act** would lift the limit to $10,000 for an individual and $20,000 for a couple, and index it to inflation going forward so it doesn’t fall behind again. The broader **SSI Restoration Act** would raise the limit and modernize several other outdated program rules at the same time. Both have some bipartisan support, but as of mid-2026 neither has passed — I’ll update this section if that changes. ## State Supplements Many states add their own supplemental payment on top of the federal SSI amount to help with food and shelter costs. This state add-on doesn’t reduce your federal SSI payment — it’s additional money on top. Whether your state offers one, and how much, varies significantly, so it’s worth checking with your state’s benefits office directly. Many SSI recipients also qualify for other need-based programs, most commonly [SNAP food benefits](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/) — worth checking if you aren’t already enrolled. ## SSA’s New SSI Improvement Office On July 24, 2026, SSA transmitted its 2026 Annual Report on the SSI Program to Congress, and Commissioner Frank Bisignano used it to announce something the agency had never done before: naming a dedicated lead executive for SSI and standing up a formal **SSI Improvement Office**. Alongside AFI’s expansion, SSA credited the office with several other changes it says are already improving service: streamlined SSI policy instructions meant to make rules more transparent, expanded call segmentation intended to route SSI recipients to better-prepared representatives, full rollout of the Payroll Information Exchange (PIE) so wage reporting happens automatically instead of relying on recipients to report it themselves, and a more structured non-medical redetermination process where SSA schedules interviews to check ongoing eligibility factors. **What this could mean if you’re applying or appealing right now:** SSA is explicitly positioning these changes as reducing improper payments and speeding up service — which cuts both ways. Faster, more automated verification (AFI, PIE) means resource and income mismatches get caught sooner, for better or worse depending on your situation, but it may also mean fewer surprise overpayment notices arriving years after the fact, since problems get flagged closer to when they happen. If you’re in the middle of an appeal or a stalled application, it’s reasonable to ask whether the SSI Improvement Office’s changes apply to your case. The full 2026 Annual Report is available directly from SSA if you want the underlying data: [ssa.gov/oact/ssir/SSI26](https://www.ssa.gov/oact/ssir/SSI26/). It’s one of several administrative changes affecting SSI recipients this year — SSA is also [switching Direct Express, the prepaid debit card many unbanked recipients use, to a new financial agent](https://savingtoinvest.com/direct-express-card-fifth-third-transition-2026/) through early 2027. ## Looking Ahead: 2027 Outlook The 2027 SSI amount moves in lockstep with the annual Social Security COLA, since both are calculated off the same July–September CPI-W data. As of mid-July 2026, independent estimates for the 2027 COLA are clustering around **2.8%–3.8%**, after briefly spiking toward 4.7% in June on energy-price pressure tied to the Iran conflict that has since eased. See my [full 2027 COLA tracker](https://savingtoinvest.com/social-security-tax-and-cost-of-living-adjustment-cola/) for how that estimate has moved. If the 2027 COLA lands at the higher end of that range, the individual SSI maximum would rise to roughly **$1,032/month** and the couple maximum to about **$1,548/month** — though these are rough projections, not official figures. The SSA typically confirms the actual COLA (and the resulting SSI amounts) in mid-October, effective the following January. I’ll update this page the moment the official number is out. ## Common Issues to Watch Out For I get questions about SSI eligibility and payment amounts fairly often, so here are a few things people commonly get tripped up on. **Moving in with family can lower your payment.** The in-kind support and maintenance rule catches people off guard — not paying your fair share of household costs can cost you up to $351.33/month, even if your income otherwise qualifies you for the full amount. **Resource limits include more than cash.** Bank accounts, some vehicles, and other assets count toward the $2,000/$3,000 limit. A modest inheritance or a second car can push someone over the line without them realizing it. **Assuming an unreported account won’t be found.** AFI’s geographic searches are specifically designed to catch accounts you didn’t list. As of April 2026 this verification runs on nearly every new claim, reopening, and appeal reversal — don’t count on self-reporting being the only check. **Work income and non-work income are treated differently.** The $1-for-$2 reduction on work income is more forgiving than the roughly $1-for-$1 reduction on unemployment, pensions, or disability payments — a distinction that trips people up when they’re weighing whether to take part-time work. **SSI and SSDI are not the same program.** SSI is needs-based and funded by general revenue; Social Security Disability Insurance (SSDI) is based on your work history and funded by payroll taxes. You can potentially qualify for both, but the rules and payment calculations are separate. **State supplements vary widely and aren’t automatic everywhere.** Don’t assume your state adds a supplement — confirm with your state’s benefits office rather than assuming the federal maximum is your full payment. Frequently Asked Questions QWhat is the maximum SSI payment for 2026? AThe 2026 maximum federal SSI payment is $994/month for an individual and $1,491/month for a couple, reflecting the 2.8% Social Security COLA. QHow much did SSI increase from 2025 to 2026? AThe individual maximum rose from $967 to $994 (up $27/month), and the couple maximum rose from $1,450 to $1,491 (up $41/month). QDoes working reduce my SSI payment? AYes. Work income reduces your SSI payment by roughly $1 for every $2 you earn. Non-work income, like pensions or unemployment, reduces it closer to $1 for every $1. QWhat are the SSI resource limits? A$2,000 for an individual and $3,000 for a couple. These limits are set by statute and have not been adjusted for inflation in years. QCan living with family lower my SSI payment? AYes. If you live in someone else's household and don't pay your fair share of food and shelter costs, your payment can be reduced by up to $351.33/month under the in-kind support and maintenance rule. QHow does SSA verify my bank account balances? AThrough its Access to Financial Institutions (AFI) tool, which automatically verifies your reported bank balances directly with financial institutions and can detect undisclosed accounts using geographic searches. As of April 2026, this verification runs on nearly all new SSI claim allowances, reopenings, and appeal reversals. QWhat is the SSI Improvement Office? AA dedicated office SSA established in 2026, along with naming its first-ever lead executive for SSI, aimed at improving service accuracy and speed for SSI applicants and recipients - announced by Commissioner Frank Bisignano in the agency's July 2026 report to Congress. QDo all states offer an SSI supplement? ANo. Many states add a supplemental payment on top of the federal SSI amount, but this varies by state and isn't universal. Check with your state's benefits office to confirm. QWhen will the 2027 SSI amount be announced? AThe SSA typically confirms the annual COLA - and the resulting SSI amounts - in mid-October, effective the following January. **Categories:** Government Rebates and Payments **Tags:** 2014, 2015, COLA, Cost of Living, Raise, Social Security --- ### [Missed the July 10 COVID-Era IRS Refund Deadline? Here's What Actually Happens Now](https://savingtoinvest.com/covid-era-irs-penalty-refund-claim-form-843/) **Published:** July 4, 2026 **Author:** Andy **Content:** ### Key Takeaways - July 10, 2026 was the deadline for most taxpayers to file a claim for COVID-era penalty and interest refunds tied to tax years 2019-2022, and that date has now passed. - If July 10 really was your personal deadline, that specific window is closed - courts don't have discretion to grant reasonable-cause or 'I didn't know' extensions on statutory refund-claim deadlines. - But July 10 wasn't everyone's deadline. Your actual cutoff depends on when you paid the penalty or interest, not one universal date - some taxpayers who paid more recently still have until 2027 or later. - If your penalties or interest were assessed but never paid, that's an abatement request, not a refund claim - it isn't bound by the July 10 deadline at all, and you can still ask. - Separate from penalties, if you're missing withholding, estimated payments, refundable credits, or a Recovery Rebate Credit for 2019-2022, those follow their own refund-statute math tied to when you filed or paid - worth checking before writing off the whole period. - The IRS disagrees with the Kwong ruling and is expected to appeal, so the underlying legal question is still unresolved - but that appeal doesn't reopen a missed refund-claim deadline for you individually. July 10, 2026 came and went. That was the deadline the National Taxpayer Advocate flagged for tens of millions of taxpayers who may be owed refunds — or abatements — of penalties and interest the IRS assessed during the COVID-19 disaster period. If you’re reading this now, you’re probably asking one of two things: did I just lose my shot, or is there still something I can do? The honest answer is it depends on your specific situation, and it’s worth spending five minutes to find out before you assume the worst. Covered in this Article: [Toggle](#) - [The Deadline Has Passed — What This Actually Means](#The_Deadline_Has_Passed_%E2%80%94_What_This_Actually_Means) - [What’s Actually Going On Here](#Whats_Actually_Going_On_Here) - [Why July 10, 2026 Was the Number That Mattered](#Why_July_10_2026_Was_the_Number_That_Mattered) - [Who This Could Actually Affect](#Who_This_Could_Actually_Affect) - [If You Still Have Time: How to File Form 843](#If_You_Still_Have_Time_How_to_File_Form_843) - [What Is a Protective Claim?](#What_Is_a_Protective_Claim) - [Two Examples of How the Deadline Actually Plays Out](#Two_Examples_of_How_the_Deadline_Actually_Plays_Out) - [Don’t Overlook Missed Refunds Beyond Just Penalties](#Dont_Overlook_Missed_Refunds_Beyond_Just_Penalties) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: What Happens After July 10](#Looking_Ahead_What_Happens_After_July_10) ## The Deadline Has Passed — What This Actually Means Let’s start with the part most people searching this actually want to know: is it too late for you specifically? **If July 10, 2026 was genuinely your deadline, that window is closed.** Refund-claim deadlines under IRC § 6511 are strict statutory limits, not the kind of thing the IRS or a court can waive for reasonable cause, hardship, or not knowing the rule existed. The Supreme Court settled this decades ago in *United States v. Brockamp* — equitable exceptions don’t apply to these deadlines the way they might to a penalty. If your three-year clock ran from the *Kwong*-adjusted July 10, 2023 due date, filing a new claim today won’t work, even if the IRS eventually loses its appeal. That’s the sobering part. Here’s the part worth checking before you assume it applies to you. **Your deadline might not have actually been July 10.** The rule is the *later* of three years from when your return was treated as filed, or two years from when you paid the tax, penalty, or interest. If you paid your COVID-era penalties or interest anytime after July 10, 2024, the two-year clock gives you more time than the headline date — some taxpayers have until 2027 or later. Check your payment date before assuming you missed anything; see the two worked examples later in this post for how this actually plays out. **If you never paid the penalties, this deadline doesn’t apply to you at all.** Assessed-but-unpaid penalties and interest are handled through an abatement request, not a refund claim, and abatement requests aren’t governed by the same statute of limitations. You can still ask — see my post on [what happens if you can’t pay your taxes](https://savingtoinvest.com/cant-afford-to-pay-my-taxes/) for how installment agreements and Currently Not Collectible status interact with an open penalty balance. **And penalties and interest aren’t the only thing on the table.** If you’re also missing withholding credits, estimated tax payments, refundable credits, or a Recovery Rebate Credit for tax years 2019 through 2022, those follow their own separate refund-statute clock tied to when you actually filed or paid — not necessarily July 10. The [National Taxpayer Advocate’s guidance on this](https://www.taxpayeradvocate.irs.gov/news/nta-blog/beyond-penalties-and-interest-how-kwong-may-affect-missed-tax-refunds-part-iv/2026/05/) is worth reading directly if this applies to you. If none of the above gives you an opening, I won’t sugarcoat it: for most people whose personal deadline really was July 10, this specific avenue is now closed. Be wary of anyone — a preparer, a “tax relief” firm, an ad — telling you otherwise for a fee. There’s no special late-filing workaround for this one. ## What’s Actually Going On Here This traces back to *Kwong v. United States*, a November 2025 ruling from the U.S. Court of Federal Claims. The case turns on IRC § 7508A(d), a tax code provision that automatically postpones filing and payment deadlines during a federal disaster declaration, plus 60 days afterward. The COVID-19 federal disaster declaration ran from January 20, 2020, through May 11, 2023. Add the 60-day tail, and you land on July 10, 2023. Under the court’s reasoning, tax returns and payments due anytime in that roughly 3.5-year window weren’t actually late until after that date. If that holds up, the IRS shouldn’t have charged failure-to-file, failure-to-pay, or estimated tax penalties — or the interest tied to them — for that window, which mostly covers tax years 2019 through 2022. The government disagrees with a broader reading of the statute, and I’d expect the Department of Justice to appeal. This could take years to fully settle — which is exactly why the refund-claim deadline mattered regardless of how the appeal turns out. ## Why July 10, 2026 Was the Number That Mattered Refund claims run on a strict clock: generally, you have until the *later* of three years from when you filed your return, or two years from when you paid the tax, penalty, or interest. Under *Kwong*‘s logic, if your 2019–2022 return was treated as due on July 10, 2023, then the three-year window closed on **July 10, 2026** — even if you actually filed well before that date. The IRS treats early-filed returns as filed on the due date for this purpose. If you paid your penalties or interest more recently, the two-year rule may give you more time. That’s the distinction that actually determines whether you’re out of options or not. ## Who This Could Actually Affect This wasn’t a narrow, specialized group. It reaches individuals, small businesses, corporations, estates, and trusts, and touches income, employment, estate, gift, and excise tax obligations. It could even affect taxpayers who filed late international information returns, where penalties can be steep even when no tax was owed. Here’s the part that bothers me: the taxpayers most likely to be affected are often the ones least likely to have a tax professional watching for something like this. Without representation, there’s a real chance someone never hears about it until after their window closes — which is exactly the situation you might be in right now. ## If You Still Have Time: How to File Form 843 If you checked your payment date above and you’re still within your window, here’s the mechanical process. For *Kwong*-related penalty and interest claims — where you’re not changing your underlying tax liability — the form is **Form 843, Claim for Refund and Request for Abatement**. If you need to change your income, deductions, credits, or filing status, use an amended return instead; see my guide on [where’s my amended tax return](https://savingtoinvest.com/wheres-my-amended-tax-return-and-when-will-i-get-my-refund/) for that process. A few mechanical details matter here. Write **“Kwong vs. United States”** across the top so the IRS can route it correctly. File a **separate Form 843 for each tax period and type of tax** — don’t combine multiple years on one form. Mail it to the IRS service center where you’d file a current-year return for that tax, which for most individual filers is: Internal Revenue Service 1973 N Rulon White Blvd. Ogden, UT 84201 Taxpayers with an existing IRS Online Account can submit certain *Kwong*-related Form 843 claims electronically through the Mobile-Friendly Forms tool on IRS.gov — but only for interest and penalties **already paid in full**. Everyone else still needs to mail the paper form. If you’re mailing it, send it via certified mail with a return receipt. The IRS doesn’t confirm receipt of a paper claim, and proof of timely mailing is the only thing standing between you and an “it never arrived” problem later. ## What Is a Protective Claim? If you’re still inside your window but aren’t sure of your exact refund amount, you don’t need to know it to file. A **protective claim** preserves your right to a refund while the underlying legal question — whether *Kwong* holds up on appeal — is still unresolved. A valid protective claim needs to be in writing and signed; include your name, address, Social Security number (or ITIN/EIN), and contact information; identify the legal issue (the *Kwong* case and IRC § 7508A(d)); clearly state the basis of the claim; and identify the specific tax year or years involved. What it does *not* need is a precise dollar figure. Write “Protective Refund Claim Pursuant to Kwong Case” across the top, fill in as much detail as you reasonably can, and file it. A vague claim that just says “I reserve my right to a refund” generally isn’t enough — the IRS needs to be able to tell what’s actually being disputed. The IRS typically holds protective claims in suspense until the courts resolve the underlying issue. That’s fine — the point isn’t to get paid quickly, it’s to make sure the clock doesn’t run out on you while you wait. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) — I’ll update this post as the Kwong appeal moves through the courts.* ## Two Examples of How the Deadline Actually Plays Out **Jason** filed his 2021 return on August 30, 2022, without an extension, and paid what he owed. The IRS hit him with failure-to-file and failure-to-pay penalties, plus interest, treating the return as late against the original April 2022 deadline. He paid those penalties on October 1, 2022. Under *Kwong*, his return wasn’t actually due until July 10, 2023, so the penalties shouldn’t have been assessed. His three-year deadline ran from that due date — giving him until **July 10, 2026**, later than the two-year deadline from his payment. If Jason didn’t file by then, his window is now shut. **Priya** has the same facts, except she didn’t pay her penalties and interest until July 1, 2025. Because her payment came so much later, the two-year rule from her payment date gives her until **July 1, 2027** — well past the date that applied to most people. If you’re in a situation closer to Priya’s, you’re likely still fine. The takeaway: your specific deadline depends on when you actually paid, not one date that applied to everyone. If you’re unsure which situation you’re in, pull your IRS account transcript and check the payment date before assuming either way. ## Don’t Overlook Missed Refunds Beyond Just Penalties This was never only about penalty and interest refunds. If you had withholding, estimated tax payments, refundable credits, or a Recovery Rebate Credit you never claimed for tax years 2019 through 2022, the same postponed-deadline logic may give you a different — and possibly later — deadline than the one that applied to penalties. Pull your [free IRS tax transcript](https://savingtoinvest.com/getting-a-free-copy-of-your-irs-tax-return-information-form-4506t-irs-tax-transcript/) and look for payment, withholding, and refund activity from that stretch before ruling yourself out. ## Common Issues to Watch Out For I get questions about deadlines like this a lot, and a few mistakes come up repeatedly — including now that July 10 has passed. **Assuming July 10 was universal.** It wasn’t. Your deadline depended on when you paid, and plenty of people still have time under the two-year rule. Don’t assume you’re out of options without checking your actual payment date. **Assuming reasonable cause can reopen a missed refund-claim deadline.** It generally can’t. Statutory refund-claim deadlines aren’t the same as penalty deadlines — courts have consistently held they aren’t subject to equitable exceptions, no matter how good the excuse. **Confusing an abatement request with a refund claim.** If you never paid the penalty, you’re asking the IRS not to collect it — that’s not bound by July 10. If you already paid and want the money back, that’s the refund claim that had the deadline. **Filing a vague protective claim (for those still in their window).** “I want to reserve my rights” isn’t a valid claim on its own. It has to name the legal issue, the tax years, and enough detail that the IRS understands what’s being disputed. **Falling for a guaranteed-refund pitch.** This is a confusing, unsettled legal issue, and confusion plus a missed deadline is exactly what scammers look for. Be wary of anyone promising they can still get you a refund after the fact, charging fees based on your refund size, or pressuring you into something you don’t understand. ## Looking Ahead: What Happens After July 10 The deadline didn’t resolve anything on its own — it just determined who’s still in the game once the legal question is finally answered. I expect the Department of Justice to appeal *Kwong*, and a final answer could be years away. In the meantime, protective claims that were filed on time sit in IRS suspense. If *Kwong* is upheld, the IRS and Treasury would still need to decide whether to process this fairly — the National Taxpayer Advocate specifically asked the IRS to provide relief systemically rather than only to people who happened to file in time, and to build a real electronic filing option instead of relying on paper. Neither recommendation has happened as of this update. If Congress or the IRS ever does announce systemic relief or a reopened window for people who missed July 10, I’ll update this page immediately — that’s genuinely the only scenario where missing the deadline wouldn’t be final. What I’m watching: how the DOJ’s appeal proceeds, whether the IRS expands electronic filing beyond the “already paid in full” category, and whether the National Taxpayer Advocate’s systemic-relief recommendation gets any traction in her next report to Congress. If you’re dealing with a current-year late filing instead, see [what happens if you file your taxes late](https://savingtoinvest.com/what-happens-if-i-file-my-taxes-late-irs-penalty-and-getting-your-refund/) for the standard penalty rules, or [contact a live IRS agent](https://savingtoinvest.com/no-tax-refund-after-21-days-tips-on-contacting-the-irs/) if you need to check on an existing claim’s status. This is a complex, still-developing legal issue, and nothing here should be read as legal or tax advice for your specific situation — consider a qualified tax professional if your case is substantial or complicated. For full detail, the National Taxpayer Advocate’s [original blog post](https://www.taxpayeradvocate.irs.gov/news/nta-blog/tens-of-millions-of-taxpayers-may-be-eligible-for-significant-tax-refunds/2026/04/) and the IRS’s [official guidance on filing Form 843 for Kwong-related claims](https://www.irs.gov/forms-pubs/filing-form-843-for-claims-citing-kwong-v-united-states) are worth reading directly. Frequently Asked Questions QI missed the July 10, 2026 deadline - is there anything I can still do? AMaybe. Check when you actually paid the penalty or interest - if it was after July 10, 2024, the two-year-from-payment rule may give you more time than the headline date. If you never paid (only assessed), you can still request abatement, which isn't bound by this deadline. And if you're missing withholding, credits, or a Recovery Rebate Credit for 2019-2022, those follow a separate refund-statute clock worth checking. QCan I get a reasonable-cause exception to file a late Kwong claim? AGenerally, no. Refund-claim deadlines under IRC § 6511 are statutory limits, and the Supreme Court has held they aren't subject to equitable exceptions like reasonable cause or 'I didn't know,' unlike some penalty relief. If your specific deadline has passed, a new claim citing Kwong typically won't be accepted. QWhat is the July 10, 2026 IRS deadline about? AIt was the deadline for most taxpayers to file a claim for refund or protective claim tied to penalties and interest the IRS assessed during the COVID-19 disaster period (January 20, 2020 through July 10, 2023), based on the Kwong v. United States court decision. QWhat form do I use to claim a COVID-era penalty or interest refund? AForm 843, Claim for Refund and Request for Abatement. Write 'Kwong vs. United States' across the top, and file a separate form for each tax period and type of tax. QCan I file Form 843 online? ATaxpayers with an IRS Online Account can file certain Kwong-related claims electronically, but only for interest and penalties already paid in full. Everyone else must mail a paper form. QWhat if I still owe the penalties and haven't paid them yet? AThat's an abatement request rather than a refund claim, and it isn't governed by the July 10, 2026 refund-claim deadline. Still, act promptly - collection activity can continue in the meantime. QIs the IRS guaranteed to issue these refunds even for people who filed on time? ANo. The IRS disagrees with the Kwong decision and is expected to appeal. Filing a timely claim preserved your rights but doesn't guarantee a refund - this could take years to resolve. **Categories:** Taxes and Retirement --- ### [PATH Act Refund Delays: 2026 IRS Release Dates, Historical Data, and What to Expect for 2027](https://savingtoinvest.com/tax-refund-payment-delays-likely-according-to-the-irs/) **Published:** February 3, 2022 **Author:** Andy **Content:** ### Key Takeaways - The PATH Act legally bars the IRS from issuing any part of your refund - not just the EITC/ACTC portion - before mid-February if you claimed the Earned Income Tax Credit or Additional Child Tax Credit. - For the 2026 filing season, the IRS confirmed WMR/IRS2Go status updates by February 21 and direct deposit payments by March 2 for early, clean filers. - There are two separate dates to track: your refund status update (when WMR/IRS2Go shows your personalized status) and your actual payment date - they're not the same thing. - Historical PATH release dates have landed consistently in the third week of February for status updates and the first week of March for payments, a pattern likely to hold for the 2027 season. - PATH is a federal-only rule; it doesn't affect your state refund, which is often paid well before the federal hold lifts. If you claimed the [Earned Income Tax Credit](https://savingtoinvest.com/earned-income-tax-credit-eitc-qualification-and-income-threshold-limits/) (EITC) or [Additional Child Tax Credit](https://savingtoinvest.com/child-and-kiddie-tax-credit-and-income-thresholds/) (ACTC) and filed early, your refund is being held by law — not because anything is wrong with your return. The Protecting Americans from Tax Hikes (PATH) Act requires the IRS to hold your **entire refund**, not just the portion tied to those credits, until at least mid-February each year. Here’s how the hold works, the confirmed 2026 dates, historical patterns, and what to expect heading into the 2027 filing season. Covered in this Article: [Toggle](#) - [What Is the PATH Act?](#What_Is_the_PATH_Act) - [Two Different Dates to Track](#Two_Different_Dates_to_Track) - [2026 PATH Refund Release Schedule](#2026_PATH_Refund_Release_Schedule) - [What Your Transcript Shows While You Wait](#What_Your_Transcript_Shows_While_You_Wait) - [Past PATH Freeze End and Refund Payment Dates](#Past_PATH_Freeze_End_and_Refund_Payment_Dates) - [Looking Ahead: 2027 Filing Season](#Looking_Ahead_2027_Filing_Season) - [Does the PATH Act Mean My Refund Is Approved?](#Does_the_PATH_Act_Mean_My_Refund_Is_Approved) - [Does the PATH Act Affect My State Tax Refund?](#Does_the_PATH_Act_Affect_My_State_Tax_Refund) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## What Is the PATH Act? The PATH Act specifies that the IRS must hold the entire refund — even the portion not associated with the EITC or ACTC — until at least three weeks after the IRS starts processing returns, which normally lands in mid-February. The statutory floor is February 15; if that date falls on a weekend or holiday, the effective date shifts to the next business day. The additional time lets the IRS cross-check EITC and ACTC claims against employer wage data before releasing refunds, since these are two of the credits most commonly targeted by fraudulent filings involving fabricated wages, dependents, or withholding. If you don’t claim the refundable portion of the Child Tax Credit (the ACTC), you’re not subject to PATH — this is why some filers claiming only the standard, non-refundable CTC see their refunds released earlier than EITC/ACTC filers. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) — I’ll update this page with confirmed dates as soon as the IRS announces them each season.* ## Two Different Dates to Track There are two separate milestones with PATH-held refunds, and mixing them up is the single biggest source of confusion every season. **Refund status update.** This is when [WMR or IRS2Go](https://savingtoinvest.com/wmr-and-irs2go-status-differences-return-received-accepted-or-under-review-and-refund-approved-versus-refund-sent/) stops showing the generic PATH delay message and starts showing your personalized refund status. For the 2026 filing season, the IRS confirmed this update by **February 21**. **Direct deposit payment date.** This is when the money actually moves. For 2026, IRS guidance points to refunds landing by **March 2** for early filers with electronic returns, direct deposit, and no other issues flagged on their account. Estimated direct deposit dates typically follow 3 to 5 days after a refund is approved; paper checks take 5 to 7 days longer than direct deposit. ## 2026 PATH Refund Release Schedule PATH Held Refund Status Updated ByDirect Deposit Payment ByBy Feb 21March 2By Feb 28March 9By March 7March 16By March 14March 23 Refunds are processed in batches — check your [cycle code](https://savingtoinvest.com/irs-cycle-code-decoder-refund-date-estimator/) to get a sense of your release date, since early filers with no other return issues generally see their payments first. Approval and payment can happen any day during the week, and some filers see updates and deposits ahead of the general schedule above. ## What Your Transcript Shows While You Wait Even after the PATH hold lifts, many filers still see a “return processing” message with no further transcript updates — this is normal and reflects broader IRS processing timelines, not just the PATH restriction itself. Watch for [code 846](https://savingtoinvest.com/code-846-refund-issued-on-your-irs-tax-transcript-what-it-means-for-your-direct-deposit-or-paper-check-refund-payment/) — Refund Issued — on your transcript with a current or future date; that confirms your PATH-held refund has been approved and will pay out once the law allows. If you instead see code 570 (return reconciliation) or a TC 203/898 (Treasury Offset), the IRS is taking additional action on your return beyond the standard PATH hold, and you’ll receive a separate notice explaining why. Lifting of the PATH hold also doesn’t automatically mean your return is fully approved — other processing issues (claimed credits not reconciling with IRS records, for example) can still delay your refund independently of PATH. ## Past PATH Freeze End and Refund Payment Dates Start of Tax SeasonExpected PATH End DateActual IRS PATH End DateRefund Payments ByJanuary 26, 2026February 16, 2026February 21, 2026March 2, 2026January 27, 2025February 14, 2025February 22, 2025March 3, 2025January 29, 2024February 17, 2024February 16, 2024February 22, 2024January 23, 2023February 18, 2023February 16, 2023February 22, 2023January 24, 2022February 15, 2022February 19, 2022March 1, 2022February 12, 2021March 1, 2021March 4, 2021March 15, 2021January 27, 2020February 16, 2020February 16, 2020February 27, 2020 The exact dates shift slightly year to year based on where February 15 falls and IRS processing capacity, but the pattern has held consistently: status updates land in the third week of February, and payments follow roughly a week to ten days later in the first days of March. ## Looking Ahead: 2027 Filing Season The IRS hasn’t yet announced official dates for the 2027 filing season (for 2026 tax year returns) — that announcement typically comes in December or January before the season opens, following the same late-January pattern seen every year since 2020. Based on the consistent history in the table above, a reasonable expectation is a filing season opening in late January 2027, with PATH-held refund status updates landing in the third week of February and payments following in the first several days of March for early, clean, direct-deposit filers. I’ll update this section with confirmed 2027 dates as soon as the IRS publishes its filing-season announcement. ## Does the PATH Act Mean My Refund Is Approved? No. The PATH message means the IRS has identified you as claiming the EITC or ACTC, so further processing and payment are held for the statutory period — it doesn’t mean your return is fully reviewed or your refund is approved. WMR and IRS2Go use the PATH message as a placeholder for all PATH-affected returns until the freeze lifts. Once it lifts, your personalized status appears on WMR and your transcript (via code 846). Filing early doesn’t get you paid earlier if you’re PATH-affected — you’re processed as soon as you file, but any refund is held regardless of filing date, so filing early just puts you further up the queue once the hold lifts. ## Does the PATH Act Affect My State Tax Refund? No — PATH is a federal-only rule directed at the IRS. Because your state and federal returns are closely tied through income, deductions, and dependents, it’s common to see them filed together, but your [state refund](https://savingtoinvest.com/when-can-i-file-and-check-my-state-tax-refund/) can be approved and paid well before your federal refund, since states aren’t bound by the federal PATH hold. If discrepancies later show up between your state and federal returns, your state tax agency will typically send a notice seeking an explanation and recoup any underpayment, or issue an additional refund if they owe you more. ## Common Issues to Watch Out For **Filing earlier doesn’t mean getting paid earlier if you’re PATH-affected.** Your refund is held regardless of your filing date — filing early just puts you further along in the queue once the hold lifts. **A status update isn’t the same as a payment.** Seeing your refund status change from the generic PATH message to a personalized status doesn’t mean the money has moved — check for the actual direct deposit date. **PATH applies to your whole refund, not just the credit amount.** Even if most of your refund comes from withholding rather than the EITC or ACTC, the IRS holds the entire payment together. **Don’t panic if your estimated date passes without a deposit.** Direct deposits can land a few business days after the estimated date depending on your bank’s processing, especially during a high-volume period like early March. **Your state refund isn’t affected by PATH.** Check your state refund tracker separately, since many states pay out before the federal hold lifts. Frequently Asked Questions QWhat is the PATH Act refund hold? AA federal law requiring the IRS to hold the entire refund - not just the credit portion - for anyone claiming the Earned Income Tax Credit or Additional Child Tax Credit, until at least February 15 each year, to allow additional fraud verification. QWhen were PATH Act refunds released for the 2026 filing season? AThe IRS updated WMR/IRS2Go refund status by February 21, 2026, with direct deposit payments landing by March 2, 2026 for early filers with no other issues on their return. QDoes filing early get me my PATH-held refund sooner? ANo. Your refund is held regardless of when you file. Filing early just means you're further along in the queue once the IRS lifts the hold in mid-to-late February. QWhen will the IRS confirm PATH dates for the 2027 filing season? ATypically in December or January before the season opens. Based on historical patterns, expect a late-January 2027 season opening, with PATH status updates in the third week of February and payments in early March. QHow do I know if my refund is being held under the PATH Act? AWMR or IRS2Go will typically show a generic delay message referencing the EITC or ACTC rather than a specific refund date, until the hold lifts and your personalized status becomes available. QDoes the PATH Act affect my state tax refund too? ANo. PATH is a federal-only requirement. State refunds run on separate timelines and are often issued before the federal hold lifts. **Categories:** Taxes and Retirement **Tags:** 2016, 2017, fraud, IRS, refund, tax --- ### [Filed Your Taxes Wrong or Got a Late W2 or 1099? Here's What Actually Happens Next](https://savingtoinvest.com/filled-my-taxes-wrong-or-got-another-w2-or-1099-how-to-fix-post-filing-issues/) **Published:** January 26, 2023 **Author:** Andy **Content:** ### Key Takeaways - Filing early and then getting a late W-2 or 1099 doesn't automatically mean trouble - the IRS often catches and fixes mismatches on its own using the same forms employers and payers already sent them. - Don't rush to file an amended return the moment you spot an error; filing Form 1040-X before the IRS finishes processing your original return can create confusion and delay everything further. - If the IRS's own correction doesn't fully resolve the issue, you'll get a notice explaining what changed and your options, including the right to amend or appeal. - Amended returns can be e-filed for many recent tax years rather than mailed on paper, which has sped up processing compared to older paper-only rules. - Income must be reported for the year you actually earned it - you can't simply add a late 1099 to next year's return instead of amending the year it belongs to. Filing early to get your refund sooner is smart, but it comes with a real risk: missing a late [W-2](https://savingtoinvest.com/when-will-i-get-my-employer-w2-investments-1099-mortgage-1098-and-other-tax-return-forms-and-filing-documents/) or [1099](https://savingtoinvest.com/1099-k-explained-everything-you-need-to-know-about-this-tax-form/) that arrives after you’ve already submitted your return. That mismatch can feel like it’s guaranteed to trigger a flag or refund delay — but that’s not always true. Covered in this Article: [Toggle](#) - [Why You Shouldn’t Panic Right Away](#Why_You_Shouldnt_Panic_Right_Away) - [Should You Wait or Amend Immediately?](#Should_You_Wait_or_Amend_Immediately) - [How to Actually Amend](#How_to_Actually_Amend) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## Why You Shouldn’t Panic Right Away Employers and financial institutions are generally required to send W-2s and most 1099s to both you and the IRS by the same January deadline, so waiting until early February to file gives most forms time to arrive before you submit. But if you’ve already filed and a form shows up afterward, there’s no need to assume the worst. The IRS receives the same W-2 and 1099 data directly from employers and payers, and its systems can often **automatically detect and fix** a missing or mismatched form during processing. If the IRS resolves the issue on its own, it will send you a notice explaining what it found and how it corrected things — and you’ll have the chance to respond or appeal at that point. ## Should You Wait or Amend Immediately? For most minor errors or a single missing form, it’s usually better to **wait for the IRS to finish processing your original return** before filing an amendment. Filing [Form 1040-X](https://www.irs.gov/forms-pubs/about-form-1040x) while your original return is still in process can create confusion at the IRS and end up [delaying an amended-return refund](https://savingtoinvest.com/wheres-my-amended-tax-return-and-when-will-i-get-my-refund/) even further, since the two filings can conflict with each other in their system. If the IRS rejects your original return outright because of a missing form or other filing issue, you can amend immediately at that point to correct or add the missing details. For a major miss — a large 1099 that materially changes your tax liability or refund, for example — it’s more reasonable to amend proactively rather than wait. ## How to Actually Amend You can now **e-file amended returns** for many recent tax years through your [tax filing software](https://savingtoinvest.com/the-best-tax-software-and-free-filing-options-as-tax-filing-goes-primarily-online/) or preparer rather than mailing a paper Form 1040-X, which has meaningfully sped up processing compared to the mail-only rules that used to apply. You don’t need to attach the actual W-2 or 1099 — just report the income and withholding figures shown on it. ## Common Issues to Watch Out For **Trying to hide a late 1099 or W-2.** The IRS already has this data from the payer or employer — omitting it doesn’t work and can trigger further scrutiny, including an [audit](https://savingtoinvest.com/irs-audit-triggers-and-red-flags-for/). **Adding missed income to next year’s return instead of amending.** Income has to be reported for the year you actually earned it. If a 1099 arrives late for last year’s work, you need to amend last year’s return, not report it on this year’s. **Amending too early.** Filing Form 1040-X before your original return finishes processing can cause the two filings to conflict and slow everything down rather than speed it up. **Assuming state returns don’t need the same fix.** The same wait-then-amend approach generally applies to state income tax returns too — check your specific state’s amended return process, since it can differ from the federal 1040-X process. **Not checking for an automatic IRS correction first.** Many mismatches are resolved by the IRS without you having to do anything — check for a notice before assuming you need to take action. Frequently Asked Questions QI got a W-2 or 1099 after I already filed my taxes - what should I do? AFor a minor mismatch, it's usually best to wait and see if the IRS corrects it automatically during processing before filing an amended return. For a major miss that changes your liability significantly, amending proactively makes more sense. QWill the IRS automatically fix a missing W-2 or 1099 on my return? AOften, yes. The IRS receives the same forms directly from employers and payers and can reconcile discrepancies during processing, sending you a notice if it makes a correction. QShould I file an amended return right away if I spot an error? ANot usually, unless your original return was rejected or the error is significant. Filing Form 1040-X before your original return finishes processing can cause delays rather than prevent them. QCan I report a late 1099 on next year's tax return instead of amending? ANo. Income must be reported for the year it was actually earned, even if the form arrives late - you need to amend the return for that specific tax year. QCan I e-file an amended tax return? AYes, for many recent tax years you can e-file Form 1040-X through tax software or a preparer rather than mailing a paper form, which has sped up processing significantly. QDoes this same approach apply to state tax returns? AGenerally yes, but check your specific state's rules - the wait-then-amend approach is a reasonable default, though state amendment processes can differ from the federal one. **Categories:** Taxes and Retirement --- ### [Missed the Tax Deadline? Here's Why Filing Late Costs More Than Paying Late in 2026](https://savingtoinvest.com/should-you-file-a-tax-return-or-file-a-tax-extension/) **Published:** September 26, 2016 **Author:** Andy **Content:** ### Key Takeaways - The failure-to-file penalty (5% of unpaid tax per month, up to 25%) is ten times steeper than the failure-to-pay penalty (0.5% per month) - always file or request an extension on time, even if you can't pay. - A tax extension only extends your time to file, not your time to pay. You still owe at least 90% of your tax bill by the original April deadline to avoid the failure-to-pay penalty. - If you file more than 60 days late, the minimum failure-to-file penalty for 2026 returns is $525 or 100% of your unpaid tax, whichever is smaller. - When both penalties apply in the same month, the failure-to-file penalty is reduced by the failure-to-pay penalty amount, so you're never charged the full 5.5% combined rate. - Filing something - even an extension you can't fully pay - is always cheaper than filing nothing at all. If you’re past the tax deadline and haven’t filed, the single most important thing to know is this: **filing late costs far more than paying late.** Even if you can’t pay your full tax bill, filing your return or an extension on time avoids the harshest IRS penalty. Covered in this Article: [Toggle](#) - [The Two Penalties, and Why They’re Not Close to Equal](#The_Two_Penalties_and_Why_Theyre_Not_Close_to_Equal) - [What Happens When Both Penalties Apply](#What_Happens_When_Both_Penalties_Apply) - [The Extension Myth](#The_Extension_Myth) - [Four Scenarios and What They Cost You](#Four_Scenarios_and_What_They_Cost_You) - [What You Should Actually Do](#What_You_Should_Actually_Do) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## The Two Penalties, and Why They’re Not Close to Equal **Failure-to-file penalty:** 5% of your unpaid tax for each month (or part of a month) your return is late, capped at 25% of the unpaid tax. **Failure-to-pay penalty:** 0.5% of your unpaid tax for each month (or part of a month) the balance goes unpaid, also capped at 25%. The failure-to-file penalty is ten times larger than the failure-to-pay penalty for the same month. That gap is intentional — the IRS wants to know what you owe even if you can’t pay it all right away. **If you file more than 60 days after the deadline** (including any extension deadline), a minimum penalty kicks in regardless of how small your balance due is: for 2026 returns, that minimum is **$525 or 100% of your unpaid tax, whichever is smaller**. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) — I’ll update this page each year as the IRS adjusts the minimum failure-to-file penalty for inflation.* ## What Happens When Both Penalties Apply If you’re late on both filing and paying in the same month, the IRS doesn’t just stack the two rates. The failure-to-file penalty is reduced by the failure-to-pay penalty for that month — so instead of paying 5.5% combined, you pay 5% total (4.5% failure-to-file + 0.5% failure-to-pay). This is a small mercy, but the larger lesson holds: filing late is still overwhelmingly the more expensive mistake. Never skip filing just because you can’t pay in full. ## The Extension Myth Here’s the misconception that trips up the most filers: *“An extension gives me more time to pay, not just to file.”* That’s not correct. A [tax extension](https://www.irs.gov/forms-pubs/about-form-4868) (Form 4868) gives you six additional months to file — pushing your deadline to mid-October — but your payment is still due by the original April deadline. If you don’t pay at least 90% of your actual tax liability by then, you’ll owe the failure-to-pay penalty and interest on the shortfall, extension or not. ## Four Scenarios and What They Cost You **You filed an extension and paid at least 90% of your bill by the deadline, but didn’t pay the rest by the extended filing deadline.** You’ll owe the failure-to-pay penalty (0.5%/month) on the remaining balance, but not the failure-to-file penalty. **You filed an extension but paid less than 90% of your bill by the deadline.** You’ll owe the failure-to-pay penalty on the full unpaid balance, continuing to accrue until you pay it off — even after you file your actual return on time under the extension. **You filed an extension, paid at least 90%, but never actually filed your return by the extended deadline.** You’ll owe the failure-to-file penalty — 5% per month, up to 25%, with the $525-or-100%-of-tax minimum kicking in past 60 days late. **You did nothing** — no extension, no return, no payment. You’ll owe both penalties, calculated together as described above, plus interest that compounds daily on the unpaid balance. ## What You Should Actually Do If you can still prepare and file a complete return, do that rather than requesting an extension — it’s one less step and stops the failure-to-file clock immediately. [Tax preparation software](https://savingtoinvest.com/the-best-tax-software-and-free-filing-options-as-tax-filing-goes-primarily-online/) and most paid preparers can e-file same-day. If you genuinely need more time to gather documents, [file Form 4868](https://www.irs.gov/forms-pubs/about-form-4868) for an automatic six-month extension — but pay as much of your estimated bill as you can when you file it. The penalty calculations are based on your unpaid balance, so even a partial payment reduces what accrues. If you’ve already missed the deadline entirely, file now regardless. The failure-to-file penalty keeps growing every month you wait, and there’s no advantage to delaying further once you’ve already missed the original date. If you can’t pay what you owe even after filing, look into an [IRS installment agreement](https://savingtoinvest.com/tax-deadline-tips-filing-late-requesting-an-extension-installment-plans-and-refund-status/) rather than simply not paying — it stops collection action and can reduce the failure-to-pay rate in some cases. For debts you’re confident you can’t ever fully repay, an [Offer in Compromise](https://savingtoinvest.com/settle-your-irs-debt-with-a-offer-in-compromise/) may let you settle for less than the full balance. ## Common Issues to Watch Out For **Assuming an extension covers your payment too.** It only extends your filing deadline — your payment is still due on the original date, and the failure-to-pay penalty applies regardless of whether you filed an extension. **Waiting to file because you can’t pay in full.** This is the single costliest mistake — the failure-to-file penalty is ten times the failure-to-pay rate, so filing an incomplete payment is always better than not filing at all. **Forgetting state extensions are separate.** A federal extension doesn’t automatically extend your state filing deadline — check your [state tax refund and filing guidance](https://savingtoinvest.com/when-can-i-file-and-check-my-state-tax-refund/) separately. **Not accounting for interest on top of penalties.** Interest accrues daily on unpaid tax and compounds, separate from and in addition to both penalties — the IRS adjusts the rate quarterly based on the federal short-term rate. **Assuming a small balance means a small penalty.** The 60-day minimum penalty ($525 or 100% of tax owed, whichever is smaller) can apply even to relatively small tax bills, so don’t assume a modest balance due means filing late is low-risk. Frequently Asked Questions QWhat's the difference between the failure-to-file and failure-to-pay penalties? AFailure-to-file is 5% of unpaid tax per month (up to 25%); failure-to-pay is 0.5% per month (up to 25%). Filing late is ten times more expensive per month than paying late. QDoes a tax extension give me more time to pay my taxes? ANo. An extension only extends your time to file - your payment is still due by the original deadline. You need to pay at least 90% of your actual tax liability by then to avoid the failure-to-pay penalty. QWhat's the minimum penalty for filing more than 60 days late? AFor 2026 returns, it's $525 or 100% of your unpaid tax, whichever is smaller - this minimum applies regardless of how small your balance due is. QWhat should I do if I can't pay my full tax bill? AFile your return or extension on time regardless, and pay as much as you can. Then look into an IRS installment agreement or, for larger unpayable balances, an Offer in Compromise. QDo both penalties apply if I'm late on filing and paying? AYes, but they're not simply added together - the failure-to-file penalty is reduced by the failure-to-pay penalty for any month both apply, capping the combined monthly rate at 5% rather than 5.5%. QDoes a federal extension also extend my state tax deadline? ANot automatically. Check your state's specific rules, since many states require a separate extension request even if you've filed a federal one. **Categories:** Taxes and Retirement **Tags:** due, extension, Filing, late, penalty, taxes --- ### [2026 Federal Poverty Level Guidelines: The Income Numbers That Decide Medicaid, SNAP, and ACA Eligibility](https://savingtoinvest.com/would-you-be-considered-poor-based-on-federal-poverty-levels/) **Published:** November 25, 2022 **Author:** Andy **Content:** ### Key Takeaways - The 2026 federal poverty guideline is $15,960 for one person and $33,000 for a family of four in the 48 contiguous states and D.C. - add $5,680 for each additional household member. - These guidelines took effect January 13, 2026, based on a 2.63% increase in the Consumer Price Index (CPI-U) between 2024 and 2025. - Alaska and Hawaii use separate, higher guideline schedules to reflect their higher cost of living. - Poverty guidelines (HHS, used for benefit eligibility) and poverty thresholds (Census Bureau, used for statistical reporting) are two different measures - most eligibility rules use the guidelines, not the thresholds. - Many programs use a multiple of the guideline rather than the guideline itself - Medicaid expansion typically uses 138% of the FPL, SNAP uses 130% (gross income test), and ACA marketplace subsidies use up to 400% of the FPL. The 2026 federal poverty guideline is **$15,960** for a single person and **$33,000** for a family of four, effective January 13, 2026. These numbers, published annually by the Department of Health and Human Services (HHS), are what determine eligibility for a wide range of federal and state benefit programs — not a general sense of who “feels” financially stretched. Covered in this Article: [Toggle](#) - [2026 Federal Poverty Guidelines by Household Size](#2026_Federal_Poverty_Guidelines_by_Household_Size) - [How These Numbers Are Actually Used](#How_These_Numbers_Are_Actually_Used) - [Poverty Guidelines vs. Poverty Thresholds](#Poverty_Guidelines_vs_Poverty_Thresholds) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## 2026 Federal Poverty Guidelines by Household Size These figures apply to the 48 contiguous states and Washington, D.C. Alaska and Hawaii use separate, higher schedules. Household Size2026 Poverty Guideline1$15,9602$21,6403$27,3204$33,0005$38,6806$44,3607$50,0408$55,720Each additional personAdd $5,680 The guidelines increased by 2.63% from 2025 levels, matching the change in the Consumer Price Index for All Urban Consumers (CPI-U) between calendar years 2024 and 2025 — the standard method HHS uses for the annual update. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) — I’ll update this table as soon as HHS publishes next year’s guidelines, typically in mid-January.* ## How These Numbers Are Actually Used Very few programs use the 100% guideline figure directly. Instead, most set eligibility at a multiple of the federal poverty level (FPL): - **Medicaid** — in states that adopted [Medicaid expansion](https://www.medicaid.gov/medicaid/eligibility/index.html), adults generally qualify at up to 138% of the FPL. - **SNAP (food stamps)** — most households must meet a gross income test of 130% of the FPL and a net income test at 100% of the FPL; see the current [state-by-state SNAP benefit amounts](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/) for exact dollar thresholds by household size. - **ACA marketplace premium subsidies** — the enhanced subsidy cliff at 400% of the FPL returned for 2026 after the temporary removal of that cap expired; your [MAGI](https://savingtoinvest.com/agi-vs-magi-explained/) relative to the FPL determines your subsidy eligibility. - **[LIHEAP energy assistance](https://savingtoinvest.com/state-energy-assistance-program-benefits-and-income-thresholds/)** — typically set at 150% of the FPL or 60% of state median income, whichever is higher. - **Earned Income Tax Credit** — while [EITC](https://savingtoinvest.com/earned-income-tax-credit-eitc-qualification-and-income-threshold-limits/) eligibility is based on its own income tables rather than a direct FPL multiple, most EITC-eligible households also fall well within the poverty-guideline range for their household size. Because eligibility for ACA subsidies during any given plan year is generally based on the prior year’s published guidelines (a timing quirk tied to when open enrollment happens relative to HHS’s January publication), always check the specific guideline year a program says it’s using rather than assuming it’s the calendar-year match. ## Poverty Guidelines vs. Poverty Thresholds These two terms get used interchangeably, but they’re not the same measure, and mixing them up leads to real confusion when checking eligibility. **Poverty guidelines** are issued each January by HHS and are the version almost every benefit program actually uses to determine eligibility. They’re a simplified, administratively convenient version of the more complex thresholds. **Poverty thresholds** are issued by the Census Bureau, typically in the fall, and are used mainly for statistical purposes — measuring how many Americans are “in poverty” for reporting purposes, not for determining benefit eligibility. Thresholds vary by more factors (including the age of the household head) than guidelines do. If you’re checking whether you qualify for a specific benefit, you want the guidelines. If you’re looking at poverty rate statistics or research, that’s typically based on thresholds. ## Common Issues to Watch Out For **Assuming the 100% guideline is the eligibility cutoff.** Most programs use a multiple of the guideline (130%, 138%, 150%, 400%), not the guideline figure itself — always check the specific percentage your program uses. **Using last year’s figures after mid-January.** HHS publishes new guidelines every January, and many benefit programs update their thresholds shortly after — using the prior year’s chart into February or March can lead to an inaccurate eligibility estimate. **Forgetting Alaska and Hawaii use different numbers.** Both states have separate, higher guideline schedules that most online calculators and quick references don’t show by default. **Confusing household size rules across programs.** Who counts as a “household member” can differ between SNAP, Medicaid, and ACA subsidy calculations — don’t assume the same household count applies identically across every program you’re checking. Frequently Asked Questions QWhat is the 2026 federal poverty level for a family of four? A$33,000 for the 48 contiguous states and D.C., effective January 13, 2026. Alaska and Hawaii use separate, higher figures. QHow much did the federal poverty guidelines increase for 2026? A2.63%, matching the change in the Consumer Price Index (CPI-U) between 2024 and 2025 - the standard annual adjustment method HHS uses. QWhat's the difference between poverty guidelines and poverty thresholds? AGuidelines are published by HHS each January and used for benefit eligibility. Thresholds are published by the Census Bureau and used mainly for statistical reporting on poverty rates. Most eligibility questions should reference the guidelines. QWhat income qualifies for Medicaid based on the federal poverty level? AIn states with Medicaid expansion, adults generally qualify at up to 138% of the federal poverty level. Non-expansion states use different, typically stricter, income limits. QDoes the federal poverty level determine SNAP eligibility? AYes. Most SNAP households must meet a gross income test of 130% of the FPL and a net income test at 100% of the FPL, though exact dollar amounts vary by household size and some deductions apply. QHow does the federal poverty level affect ACA health insurance subsidies? AYour household income relative to the FPL determines your premium tax credit eligibility on the ACA marketplace. The 400% FPL subsidy cliff returned for 2026 after being temporarily removed in prior years. **Categories:** Personal Finance and Money **Tags:** Food stamps, poverty --- ### [Help! My Car Was Illegally Towed – How Do I Get My Towing Charge Back](https://savingtoinvest.com/help-my-car-was-illegally-towed-how-do-i-get-my-150-towing-charge-back/) **Published:** March 28, 2011 **Author:** Andy **Content:** ### Key Takeaways - At least 42 states now cap non-consensual towing fees or require tow companies to file rate schedules with a regulator - up sharply since 2020. - Most states require the towing company to notify local police within 30 minutes to a few hours of a private-property tow; no police report on file is a strong sign the tow was mishandled. - Missing, undersized, or single-entrance-only signage is one of the most common - and most winnable - grounds for disputing a tow. - The 'no charge for the first 24 hours of storage' rule some people cite isn't universal - it applies in a handful of states (New Mexico and New York, among others), not nationwide. Check your state in the table below. - Daily storage fee caps range roughly $20-$75 depending on the state; base tow fee caps run from about $65 (Hawaii) to $175+ (New Hampshire) where a cap exists at all. - Never confront the tow yard or try to physically stop or retrieve your car yourself - that risk turns you from the wronged party into the one facing criminal charges. I recently visited some friends for dinner at their new apartment in a large 300-unit complex. When I got back to where I’d parked, the space was empty. After a minute of panicked disbelief — was I even in the right row? — I accepted my car was gone. A small, easy-to-miss towing sign with a company phone number told me it had been towed, not stolen. I called the towing company and tried to explain I’d parked legally. They weren’t interested; they were just following the apartment management’s instructions, they said, and offered nothing in the way of customer service. I needed the car for work the next day, so I paid the $150 charge and got it back. I was not a happy camper. I’d parked in an unreserved spot with no visible signage restricting it, and my friends — who’d lived there for two weeks and parked in similar spots without issue — were sure their lease didn’t ban visitor parking either. So I started digging into towing law, and here’s what I found, updated with the current state-by-state rules. Covered in this Article: [Toggle](#) - [Check You Didn’t Actually Violate a Parking Rule](#Check_You_Didnt_Actually_Violate_a_Parking_Rule) - [Get Proof the Tow Followed the Rules](#Get_Proof_the_Tow_Followed_the_Rules) - [Don’t Be a Hero](#Dont_Be_a_Hero) - [Predatory Towing Is a Real Business Model](#Predatory_Towing_Is_a_Real_Business_Model) - [Your State’s Towing Rules: Fee Caps, Notice Rules, and Where to Complain](#Your_States_Towing_Rules_Fee_Caps_Notice_Rules_and_Where_to_Complain) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [What’s Changing: States Keep Tightening These Rules](#Whats_Changing_States_Keep_Tightening_These_Rules) ## Check You Didn’t Actually Violate a Parking Rule Before anything else, confirm you were actually parked illegally. Look for signage at the lot’s entrances or near the space itself. If you can, check the lease of whoever you were visiting — it should spell out visitor parking rules. Then call the apartment manager and ask directly why your car was towed; they’re usually more responsive than the tow company, partly because they still have to answer to their own tenants. ## Get Proof the Tow Followed the Rules A properly executed tow requires the company to photograph the “violation” before hooking up your car, and in most states, to notify local police so your car isn’t logged as stolen. Getting those photos from the tow company isn’t always easy — expect to go back, and expect a fee for copies. Call the local police department where the tow company operates and ask whether the tow was actually reported. Police can’t force a release, but they can confirm whether procedure was followed, and they’ll act as a witness if things get heated at the lot. Don’t expect police to treat this as a priority, either — it’s a minor civil matter to them, and they typically have a longer working relationship with the tow operator than with you. ## Don’t Be a Hero The single biggest mistake people make is taking matters into their own hands — yelling at, threatening, or physically confronting tow yard staff. Do that and you become the one facing charges, not them. Work through the police for the initial complaint, then follow your state’s formal dispute process (below) if talking to the tow company and property manager doesn’t resolve things. ## Predatory Towing Is a Real Business Model Once a tow company has your car, it can refuse to release it until its fee is paid — and storage charges keep accruing daily. If those charges eventually exceed the car’s value, the company can auction it off and keep the proceeds. Most vehicle owners don’t know the specific protections their state gives them, can’t afford to take time off to fight it in court, and get little help from police, who usually aren’t towing-law specialists either. That imbalance is exactly why state governments have kept adding new towing protections — Georgia, for example, [now requires booting companies to post an all-inclusive flat-rate sign at every entrance](https://consumer.georgia.gov/consumer-topics/towing), a rule that only took effect in 2026. Many of these state towing statutes exist because the [auto insurance](https://savingtoinvest.com/cheaper-auto-insurance/) industry lobbied for them too — negligent or predatory towing drives up claims and premiums, so insurers, consumer groups, and state regulators have largely been pushing in the same direction on this. If a company’s fee tactics ever feel like the same kind of buried, after-the-fact charge you’d see from an [airline or car rental company padding your bill with fees you never agreed to](https://savingtoinvest.com/how-car-rental-companies-live-avis-rip-you-off-with-extra-fees-for-linking-to-your-frequent-flier-reward-program/), that instinct is usually right — and the same “get it in writing, then dispute it” playbook applies. ## Your State’s Towing Rules: Fee Caps, Notice Rules, and Where to Complain This is the part that actually changes what you should do next. Towing law is entirely state-by-state — there’s no federal towing statute — so what’s illegal in one state may be perfectly legal a few miles away across a state line. The table below summarizes each state’s key non-consensual (private-property) towing protections: the notice or police-reporting requirement, and the fee cap or headline consumer protection. Local city and county ordinances can add further requirements on top of these, so treat this as your starting point, not the final word. StateNotice / Reporting RequirementFee Cap or Key ProtectionAlabama (AL)No fixed reporting window in state ruleRates must be “reasonable,” approved by the Alabama Law Enforcement AgencyAlaska (AK)Owner/lienholder notified within 7 working daysNo statewide fee cap; notice timing is the main protectionArizona (AZ)Police notified within 1 hourStorage capped around $15/dayArkansas (AR)Police notified within 2 hoursNo storage fee may be charged until police are notifiedCalifornia (CA)Tow company must give a reasonable chance to leave firstNo blanket lot-wide tow authorization allowed (VC §22658); owner can request a hearingColorado (CO)Set by recent consumer-protection billsFee/documentation rules tightened under HB 24-1051Connecticut (CT)Police notified within 2 hoursBase tow fee capped near $130 (light-duty vehicles)Delaware (DE)Photographic evidence requiredStorage fee capped at $500District of Columbia (DC)Towing control number requiredOwner responsible for fees; strict licensing rulesFlorida (FL)Posted rate sheet required at entranceCredit cards must be accepted; 24-hour retrieval access guaranteedGeorgia (GA)State-issued permit required to towFee cap around $150; storage lot must be securedHawaii (HI)—Tow capped near $65 + $7.50/mile; storage $20–$25/dayIdaho (ID)Interested parties identified within 72 hoursVehicle must be released once fees are paidIllinois (IL)Police notified within 30 minutes; photo requiredItemized final invoice required, including any damage notedIndiana (IN)Local law enforcement notifiedFee capped near $150 in Indianapolis; storage ~$30/dayIowa (IA)—No statewide rate cap — one of the least-regulated statesKansas (KS)Written storage-fee notice requiredMileage fee capped at $3/mile beyond a 20-mile round tripKentucky (KY)Police notified within 2 hoursCompany must secure the vehicle against damage/theftLouisiana (LA)Written owner/lienholder notice after 45 daysWritten contract required between property owner and tow companyMaine (ME)Notice required if holding past 3 daysStorage capped near $900 for a 30-day periodMaryland (MD)Set by recent consumer billsExcessive nonconsensual-tow fees restricted (Transp. Code §21-10A-04)Massachusetts (MA)Municipal rules varyPrimarily governs officer-ordered tows; check local ordinance for private lotsMichigan (MI)Signage posted 24 hours before towing; police notified after 7 days unclaimedStolen-vehicle check required before towingMinnesota (MN)—Can’t tow a ticketed vehicle from public property for 4 hours (with safety exceptions)Mississippi (MS)—Owner liable for “reasonable” towing/storage cost; no hard capMissouri (MO)—Tow company must have a visible business address and a secure lotMontana (MT)Certified letter to owner/lienholder within 15 daysNo release until fees paidNebraska (NE)—Company may hold vehicle until paid, or dispose of it after 90 daysNevada (NV)Warning required before towingCan’t tow from residential/public lots or a disabled vehicle without consentNew Hampshire (NH)—Tow capped at $175; storage capped at $50/dayNew Jersey (NJ)Owner/lienholder notice within 30 daysStorage capped at $750 if notice isn’t given in timeNew Mexico (NM)Valid public-safety reason requiredNo storage fee for the first 24 hoursNew York (NY)Compliant signage requiredNo general statewide rate cap; some localities bar storage fees for the first 24 hoursNorth Carolina (NC)Written property-owner authorization + annual permit requiredOccupied vehicles cannot be towedNorth Dakota (ND)—Violations mean free return and no storage fee chargedOhio (OH)Posted conditions required for private tow-away zonesGoverned by O.R.C. §4513.601Oklahoma (OK)Governed by the Nonconsensual Towing Act of 2011Broadly regulates public-interest and private-property towsOregon (OR)Mailed notice within 3 business daysVehicle held at a secure, tower-controlled locationPennsylvania (PA)Owner may summon their preferred tow operatorApplies mainly to officer-directed tows (2024 Act 43)Rhode Island (RI)Notice given to ownerDispute filed with the Public Utilities Commission within 10 daysSouth Carolina (SC)Police notified within 30 minutes; written owner authorization requiredStorage billable up to 7 business days before formal notice requiredSouth Dakota (SD)Owner notified within 24 hoursNo fee collectible if the 24-hour notice is missedTennessee (TN)10 days’ written notice posted on the vehicle (residential landlords)—Texas (TX)Posted signage at entrance and exit requiredWritten property-owner agreement or request requiredUtah (UT)—Property owner/manager may tow or boot under local ordinanceVermont (VT)Written authorization required per towTow capped near $125 (public-property abandoned vehicles)Virginia (VA)Written authorization required at time of towStorage capped at $25/day for the first 10 daysWashington (WA)Signage required at private and public lotsVehicle considered abandoned after 120 hoursWest Virginia (WV)Prior written request from property owner/lessee requiredNo tow without that written requestWisconsin (WI)Police must be notified before removalNo charge allowed if police weren’t notified firstWyoming (WY)No specific towing statuteTaking a vehicle without authority is a misdemeanor under general law *Compiled from state statutes and consumer-protection filings current as of mid-2026. Local city/county ordinances often add further rules — always double-check with your specific city if the table above doesn’t resolve your question.* If you’re not sure where to start, this is the order that actually works: call your local police non-emergency line first to confirm the tow was properly reported, then contact the property manager or lot owner, then — if you still believe you were overcharged or wrongly towed — file with your state’s consumer protection office or, for a handful of states like Rhode Island, the state Public Utilities Commission. For patterns of deceptive or predatory towing, you can also [report it to the FTC](https://reportfraud.ftc.gov), which treats predatory towing as an unfair business practice even without a dedicated federal towing law. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) — I’ll update this table as more states pass new towing protections.* Keeping a small cushion in a [high-yield savings account](https://savingtoinvest.com/high-yield-savings/) also just makes this whole situation less stressful. A surprise $150–$500 charge to get your own car back is annoying regardless, but it’s a lot less of a crisis if it doesn’t wreck your week’s budget while you sort out a dispute. That’s part of the broader case I make in my [guide to good personal finance](https://savingtoinvest.com/a-to-z-of-good-personal-finance/) for keeping some cash liquid instead of fully invested — and if you’re rebuilding your budget after an unexpected hit like this, my [full money roadmap](https://savingtoinvest.com/master-your-money-the-ultimate-personal-income-and-spending-roadmap/) walks through how to prioritize where the next paycheck goes. ## Common Issues to Watch Out For **Assuming the “first 24 hours free” rule applies everywhere.** It’s real in a few states, but most states don’t have it — check the table above instead of assuming. **Confronting tow yard staff in person.** I get why the instinct is there, but getting loud or aggressive with the tow operator only risks turning you into the person facing charges, not them. **Not documenting the lack of signage.** If you think you were towed illegally, photograph the entrances and nearby signage (or lack of it) as soon as you can — ideally within a day or two, before anything changes. **Paying cash without an itemized receipt.** Several states require an itemized invoice and credit card acceptance; a “cash only, no receipt” policy is itself often a violation worth reporting. **Waiting too long to dispute.** States that offer a formal hearing or complaint process — Rhode Island’s Public Utilities Commission route is a good example — often give you as little as 10 days to file. Don’t sit on it. ## What’s Changing: States Keep Tightening These Rules Predatory towing complaints have driven a wave of new state legislation in the last few years — Florida’s rate-sheet requirement, Delaware’s photo-evidence mandate, and Colorado’s 2024 consumer-protection overhaul are recent examples. Given how often new bills move through state legislatures on this topic, I expect more states to add or raise fee caps and reporting requirements over the next year or two, and I’ll keep this table current as that happens. Frequently Asked Questions QHow much can a towing company legally charge me? AIt depends entirely on your state. Most states now cap or regulate non-consensual towing fees, ranging from roughly $65 in Hawaii to $175+ in New Hampshire, plus separate daily storage caps typically between $20 and $75. Check the state table above for your specific state. QHow do I know if my car was towed legally? ACall your local police non-emergency line. Most states require the tow company to report a private-property tow to police within 30 minutes to a couple of hours - if there's no record of that report, that's a strong sign the tow wasn't handled properly. QWhat if there was no sign posted where I parked? AMissing, undersized, or single-entrance-only signage is one of the most common and most winnable grounds for disputing a tow. Nearly every state requires clearly visible signage listing the towing company, its phone number, and the maximum fee before a private lot can legally tow. QCan I stop a tow truck from taking my car if I get there in time? AIn some states, yes - you may only owe a smaller 'drop fee' if you arrive before the vehicle is fully hooked up and moved. This isn't guaranteed nationwide, so check your state's rule before assuming it applies. QWhere do I actually file a complaint about an illegal tow? AStart with your local police department to confirm reporting rules were followed, then your state's consumer protection office. A few states, like Rhode Island, route towing disputes specifically through the state Public Utilities Commission instead. QShould I hire an attorney over a towing charge? AFor a single $150-$500 fee, it's usually not worth attorney costs. If the tow caused vehicle damage, involved repeated violations, or looks like a pattern of predatory towing, a consumer-protection attorney - many work on contingency - can pursue actual and, in some states, punitive damages. QDo towing companies have to accept credit cards? AIn a number of states - including Florida and others with strong consumer protections - towing companies must accept credit card payment on-site and can't run a cash-only operation. A 'cash only' demand may itself violate your state's law. **Categories:** General Topics **Tags:** cars, illegal, police, towing --- ### [Schedule C (Form 1040) Explained: What Counts as Business Income and How to Get It Right in 2026](https://savingtoinvest.com/schedule-c-form-1040-reporting-business-income/) **Published:** January 19, 2023 **Author:** Andy **Content:** ### Key Takeaways - Schedule C is for sole proprietors and single-member LLCs - partnerships, multi-member LLCs, and corporations report business income on different forms entirely. - The 1099-K reporting threshold for payment apps like PayPal, Venmo, and Cash App reset to $20,000 and 200 transactions in 2026 under the One Big Beautiful Bill Act (OBBBA), reversing the lower $600 threshold that had been set to phase in. - You owe tax on all your business income whether or not you receive a 1099-K or 1099-NEC - the form is a reporting mechanism for the IRS, not a determination of what's taxable. - The 20% Qualified Business Income (QBI) deduction is now permanent under OBBBA, and the phase-in range for specified service businesses was widened for 2026 - by $25,000 for single filers and $50,000 for joint filers compared to 2025. - Self-employment tax is 15.3% (12.4% Social Security up to the $184,500 wage base for 2026, plus 2.9% Medicare with no cap) - half of it is deductible when calculating your AGI. Schedule C is the form that reports income and expenses from a business you run as a sole proprietor or single-member LLC — think freelancing, consulting, an Etsy shop, or any other side hustle where you’re not formally incorporated or partnered with someone else. If your business is structured as a partnership, S-corp, C-corp, or multi-member LLC, Schedule C isn’t the right form — those entities file separately (Form 1065 or Form 1120/1120-S) and the income flows to your personal return differently. Covered in this Article: [Toggle](#) - [What’s Different for 2026](#Whats_Different_for_2026) - [Filling Out Schedule C: The Basics](#Filling_Out_Schedule_C_The_Basics) - [Two Worked Examples](#Two_Worked_Examples) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## What’s Different for 2026 **The 1099-K threshold reset.** For several years, the IRS was set to lower the 1099-K reporting threshold for third-party payment networks (PayPal, Venmo, Cash App, Stripe) down to just $600 in total payments. OBBBA reversed that and restored the original threshold: platforms only have to issue a 1099-K once you exceed **$20,000 in payments AND 200 transactions** in a calendar year — both conditions have to be met. This changes what forms you’ll receive, not what you owe. If you earned $12,000 from freelance design work through a payment app and never crossed the threshold, you won’t get a 1099-K — but you still have to report that $12,000 as business income on Schedule C. The IRS has always required all business income to be reported, form or no form. **The QBI deduction is permanent, with a wider phase-in range.** The 20% Qualified Business Income deduction under Section 199A — available to most sole proprietors — was made permanent by OBBBA rather than expiring as originally scheduled. For 2026, the income range over which the deduction phases out for specified service businesses (consulting, law, accounting, and similar fields) widened by $25,000 for single filers and $50,000 for joint filers compared to 2025, giving more filers in those fields access to at least a partial deduction. **100% bonus depreciation returned.** Business equipment placed in service after January 19, 2025 qualifies for 100% bonus depreciation, meaning you can deduct the full cost in the year you buy it rather than spreading it over several years. ## Filling Out Schedule C: The Basics Report your gross receipts, then subtract your cost of goods sold (if applicable) and your business expenses to arrive at your net profit or loss, which flows into your [adjusted gross income](https://savingtoinvest.com/agi-vs-magi-explained/) on your personal Form 1040. Common Schedule C expense categories include advertising, car and truck expenses (using the [standard mileage rate](https://savingtoinvest.com/standard-mileage-rate-tax-irs/) or actual expenses), home office costs, supplies, and contract labor. If you have multiple distinct side businesses, you generally need a separate Schedule C for each one — a freelance writing business and an Etsy shop are two different Schedules C, not one combined form. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) — I’ll update this page whenever the IRS adjusts the QBI thresholds or 1099-K rules again.* ## Two Worked Examples **Sarah** freelances as a graphic designer and nets $65,000 in Schedule C profit for 2025 (filed in 2026). Her self-employment tax is calculated on 92.35% of that net profit ($60,028), at 15.3%, coming to roughly $9,184 — half of which ($4,592) is deductible above the line. Separately, assuming she’s under the QBI phase-in threshold, she can also claim a 20% QBI deduction against her taxable income, worth roughly $13,000. **Marcus** runs an Etsy shop on the side and received $18,000 in total payments across 180 transactions through Etsy’s payment processor in 2025. Because he stayed under both the $20,000 and 200-transaction thresholds, he won’t receive a 1099-K for that income. He still must report the full $18,000 as gross receipts on his own Schedule C — the absence of a 1099-K doesn’t reduce his tax obligation. ## Common Issues to Watch Out For **Assuming no 1099-K means no taxable income.** This is the single most common and costly mistake since the threshold reset. You’re legally required to track and report all business income yourself, with or without a form confirming it. **Mixing personal and business expenses.** Only expenses that are ordinary and necessary for the business are deductible — a phone plan used for both personal calls and client work needs a reasonable allocation, not a full deduction. **Filing late or not paying quarterly estimated taxes.** Schedule C income isn’t subject to withholding, so if you expect to owe $1,000 or more, you generally need to make [quarterly estimated payments](https://savingtoinvest.com/quarterly-estimated-taxes-this-year-what-freelancers-actually-need-to-know/) throughout the year to avoid an underpayment penalty. **Not tracking mileage and receipts in real time.** Reconstructing a year of business expenses from memory in April is where most missed deductions happen — a simple spreadsheet or app updated weekly beats trying to remember everything at tax time. **Overlooking the QBI deduction entirely.** Many first-time Schedule C filers don’t realize this deduction exists or assume it only applies to larger businesses — it applies to most sole proprietors regardless of size, subject to the income phase-in ranges, and interacts with your [marginal tax bracket](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/) since it reduces taxable income rather than your tax bill directly. **Not setting aside money for a retirement account.** Self-employed filers have access to [retirement plans](https://savingtoinvest.com/small-business-retirement-plans-401k-sep-ira-simple-ira-and-esop-plans/) — a Solo 401(k), SEP IRA, or SIMPLE IRA — that can meaningfully reduce your Schedule C-driven tax bill while building retirement savings, and many freelancers never set one up simply because no employer is prompting them to. Frequently Asked Questions QWho needs to file a Schedule C? ASole proprietors and single-member LLCs that haven't elected to be taxed as a corporation. Partnerships, multi-member LLCs, and corporations use different forms. QWhat is the 1099-K threshold for 2026? A$20,000 in total payments and more than 200 transactions in a calendar year, for third-party payment networks like PayPal, Venmo, and Cash App. Both conditions must be met before a 1099-K is required. QDo I owe tax on income if I didn't receive a 1099-K or 1099-NEC? AYes. All business income is taxable and must be reported on Schedule C whether or not you received a tax form documenting it. QWhat is the Qualified Business Income (QBI) deduction? AA deduction of up to 20% of your qualified business income, available to most sole proprietors and other pass-through business owners. It was made permanent under the One Big Beautiful Bill Act, with income-based phase-in ranges for certain service businesses. QHow much is self-employment tax in 2026? A15.3% total - 12.4% for Social Security on the first $184,500 of net self-employment earnings, plus 2.9% for Medicare with no income cap. Half of the total self-employment tax is deductible when calculating your AGI. QCan I deduct 100% of new business equipment I bought in 2025? AIf the equipment was placed in service after January 19, 2025, yes - 100% bonus depreciation applies, letting you deduct the full cost in the year of purchase rather than depreciating it over several years. **Categories:** Taxes and Retirement --- ### [Job Search Tax Deductions Are Gone Federally — Here's What's Actually Still Deductible in 2026](https://savingtoinvest.com/job-search-tax-deductions-what-is-still-deductible/) **Published:** December 27, 2010 **Author:** Andy **Content:** ### Key Takeaways - Job search expenses (resume costs, agency fees, interview mileage, job-search-related travel) have not been federally tax-deductible since 2018, and the One Big Beautiful Bill Act (OBBBA) made that suspension permanent starting with the 2026 tax year. - Moving expense deductions are now limited to active-duty military members relocating under a Permanent Change of Station (PCS) order - civilians moving for a new job get no federal deduction, and haven't since 2018. - Eight states - Alabama, Arkansas, California, Hawaii, Maryland, Minnesota, New York, and Pennsylvania - never conformed to the federal suspension and still allow these deductions on state returns. - Education expenses to qualify you for a new trade or profession have never been deductible as a job expense, before or after TCJA - that's a separate, longstanding rule, not something OBBBA changed. - Reservists, qualified performing artists, and fee-basis government officials remain a narrow exception for unreimbursed employee business expenses generally, but that exception doesn't extend to job-hunting costs specifically. If you’re searching for a new job in 2026 — maybe after a [layoff or severance negotiation](https://savingtoinvest.com/being-laid-off-negotiate-that-severance-package/) — the resume help, mileage to interviews, and employment agency fees you’re paying for are not federally tax-deductible, and haven’t been since 2018. The 2017 Tax Cuts and Jobs Act (TCJA) suspended this deduction, and the One Big Beautiful Bill Act (OBBBA), signed in 2025, made that suspension permanent rather than letting it expire. Covered in this Article: [Toggle](#) - [What Changed, and When](#What_Changed_and_When) - [What About Moving for a New Job?](#What_About_Moving_for_a_New_Job) - [The State-Level Exception Most People Miss](#The_State-Level_Exception_Most_People_Miss) - [Two Worked Examples](#Two_Worked_Examples) - [What Job Seekers Can Still Do](#What_Job_Seekers_Can_Still_Do) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## What Changed, and When Before 2018, job search expenses fell under “miscellaneous itemized deductions subject to the 2% AGI floor” — you could deduct the portion of eligible costs (resume printing, employment agency fees, [mileage](https://savingtoinvest.com/standard-mileage-rate-tax-irs/) to interviews, long-distance calls for the job search) that exceeded 2% of your [adjusted gross income](https://savingtoinvest.com/agi-vs-magi-explained/), but only if you itemized. TCJA suspended this entire category of deductions for tax years 2018 through 2025. Many taxpayers assumed it would return once that window closed. Instead, OBBBA eliminated it permanently starting in 2026 — there’s no federal job search expense deduction to plan around this year or in future years. ## What About Moving for a New Job? Same story, different provision. Civilian moving expense deductions were also suspended by TCJA in 2018 and made permanent under OBBBA. If you relocate for a new job today, none of your moving costs — truck rental, movers, mileage, lodging during the move — are federally deductible. The one exception: **active-duty members of the U.S. Armed Forces** moving under military orders for a Permanent Change of Station (PCS) can still deduct unreimbursed moving expenses using [Form 3903](https://www.irs.gov/taxtopics/tc455). OBBBA carved out a narrow, similar exception for certain intelligence community members, but the rules largely mirror the military provision. Everyone else gets nothing federally. ## The State-Level Exception Most People Miss Here’s the part that actually matters for a meaningful number of filers: eight states never conformed to the federal suspension and still allow the 2% miscellaneous itemized deduction — including job search expenses — on **state** returns: **Alabama, Arkansas, California, Hawaii, Maryland, Minnesota, New York, and Pennsylvania**. If you live in one of these states, keep your job search receipts (mileage logs, agency fees, resume services, employment website ads) even though you can’t use them on your federal return. Check your state’s specific rules — some, like California, still require the expenses to exceed 2% of your state AGI before any of it counts, and your federal [tax bracket](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/) planning won’t be affected either way since this is a state-only benefit now. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) — I’ll flag it here if Congress or any state revisits these rules.* ## Two Worked Examples **Jake** was laid off and spent about $600 over three months on resume writing help, mileage to five in-person interviews, and a paid job board subscription. On his federal return, none of it is deductible — itemizing wouldn’t help, because the entire category was eliminated. If Jake lives in California, he can potentially deduct the portion of that $600 (plus any other miscellaneous itemized expenses) that exceeds 2% of his California AGI on his state return, but only if he itemizes there too. **Marcus** is active-duty Air Force and received PCS orders to relocate 800 miles for a new duty station. Because his move is military-ordered, he can deduct his unreimbursed moving costs — mileage, lodging en route, and non-reimbursed packing expenses — using Form 3903, entered directly on Schedule 1 of his federal return. His neighbor Dana, a civilian who moved the same distance for a new job offer that same month, gets no federal deduction for any part of her move. ## What Job Seekers Can Still Do **Education tax credits, if you’re formally enrolled.** The [American Opportunity Tax Credit and Lifetime Learning Credit](https://www.irs.gov/credits-deductions/individuals/education-credits) are unrelated to the job-search-expense deduction and remain available if you’re taking qualifying coursework — but education specifically to break into a new trade or profession (as opposed to maintaining or improving skills in your current one) has never qualified as a job-related expense, a rule that predates TCJA entirely. **Self-employed and freelance job hunting is different.** If you’re actively running a business — freelancing, consulting, or gig work — while also job hunting, ordinary and necessary expenses tied to growing *that* business (not your W-2 job search) are still deductible on Schedule C, since Schedule C deductions were never part of the miscellaneous itemized deduction category that got eliminated. **[Unemployment benefits are still fully taxable](https://savingtoinvest.com/are-unemployment-benefit-payments-taxable-at-a-state-and-federal-level-1099-g-forms-how-much-do-i-have-to-pay-based-on-my-withholding/)**, and job-search costs won’t offset that income the way they might have felt like they could pre-2018 — factor that into your withholding or estimated payments if you’re job hunting while collecting benefits. ## Common Issues to Watch Out For **Assuming this deduction still exists because an old article, forum post, or tax-prep software prompt mentions it.** A lot of outdated content online (including, until this update, this very page) still describes the pre-2018 rules. If a source doesn’t mention TCJA or OBBBA, treat the information as stale. **Confusing job-search expenses with reservist, performing-artist, or fee-basis-official expenses.** Those three narrow categories can still deduct unreimbursed *employee business expenses* above the line via Form 2106 — but that’s about expenses tied to their current job, not the cost of hunting for a new one. **Not checking state conformity before assuming a state deduction doesn’t exist.** Even within a conforming state, the rules and thresholds can differ from the old federal ones — verify your specific state’s current instructions rather than assuming the pre-2018 federal rule applies unchanged. **Forgetting that self-employment expenses are a completely separate category.** If you’re a freelancer or independent contractor searching for W-2 work on the side, don’t confuse your deductible Schedule C business expenses with your non-deductible personal job search costs. Frequently Asked Questions QCan I deduct job search expenses on my 2026 federal tax return? ANo. Job search expenses were suspended federally starting in 2018 under TCJA, and the One Big Beautiful Bill Act made that suspension permanent beginning with the 2026 tax year. This applies regardless of whether you itemize. QAre moving expenses for a new job deductible in 2026? AOnly for active-duty military members moving under a Permanent Change of Station order, using Form 3903. Civilians moving for a new job - even across the country - get no federal deduction. QDo any states still allow a job search expense deduction? AYes. Alabama, Arkansas, California, Hawaii, Maryland, Minnesota, New York, and Pennsylvania never conformed to the federal suspension and still allow the 2% miscellaneous itemized deduction, including job search expenses, on state returns. QCan I deduct education costs to switch to a new career? AGenerally no. Education expenses to qualify for a new trade or profession have never been deductible as a job-related expense - that predates the 2018 changes entirely. The American Opportunity and Lifetime Learning Credits are separate and may apply depending on your enrollment status. QI'm self-employed and job hunting for W-2 work on the side - can I deduct anything? AExpenses tied to operating your self-employed business remain deductible on Schedule C, since that deduction category was never eliminated. Costs specifically related to hunting for separate W-2 employment are not deductible. QWill the job search expense deduction ever come back federally? ANot without new legislation. OBBBA made the TCJA suspension permanent rather than allowing it to expire, so it would take an act of Congress to restore it. **Categories:** Career and Relationships **Tags:** job, taxes --- ### [Where Is My New Jersey Tax Refund? 2026 Status, Processing Times, and Key State Deductions](https://savingtoinvest.com/new-jersey-state-tax-refund-status/) **Published:** January 15, 2022 **Author:** Andy **Content:** ### Key Takeaways - New Jersey's 2025 tax year returns are due April 15, 2026, aligned with the federal deadline. - E-filed NJ returns typically take 4+ weeks to process; paper returns take 12+ weeks, and returns requiring extra review or sent by certified mail can take 15+ weeks. - Claiming the NJEITC (worth 40% of your federal Earned Income Tax Credit) triggers a mandatory manual review, which will delay your refund beyond the standard timelines. - New Jersey's Retirement Income Exclusion lets you exclude up to $100,000 (married filing jointly), $75,000 (single), or $50,000 (married filing separately) of qualifying retirement income if your total income is $100,000 or less - the exclusion phases out between $100,001 and $150,000 and disappears entirely above that. - Social Security benefits are completely exempt from New Jersey income tax at every income level, unlike the federal return where a portion can be taxable. New Jersey’s 2025 tax year returns are due **April 15, 2026**, the same day as the [federal filing deadline](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/). If you’re waiting on a refund or want to understand what’s changed for this filing season, here’s the current picture. Covered in this Article: [Toggle](#) - [Checking Your NJ Refund Status](#Checking_Your_NJ_Refund_Status) - [NJ Earned Income Tax Credit (NJEITC) {#nj-eitc}](#NJ_Earned_Income_Tax_Credit_NJEITC_nj-eitc) - [The NJ Retirement Income Exclusion](#The_NJ_Retirement_Income_Exclusion) - [Other Key NJ Deductions](#Other_Key_NJ_Deductions) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## Checking Your NJ Refund Status Use the New Jersey Division of Taxation’s [Check Your Refund Status tool](https://www.state.nj.us/treasury/taxation/checkrefundstatus.shtml) — similar to the [IRS’s refund schedule and tracking tools](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) for federal returns. You can also call 1-800-323-4400, available 24/7. Processing timelines to expect before contacting an agent about a delay: Filing MethodTypical Processing TimeE-filed4+ weeksPaper return12+ weeksAdditional review required, or sent by certified mail15+ weeks If you claimed the [NJEITC](#nj-eitc), expect your refund to take longer than these baseline timelines due to a mandatory manual review — this is one of the most common reasons for an NJ refund delay. If your refund comes back lower than expected, New Jersey runs several offset programs that can divert part or all of your refund to cover unpaid state or federal debts — unpaid taxes, traffic fines, or child support, among others. ## NJ Earned Income Tax Credit (NJEITC) {#nj-eitc} If you qualify for the federal [Earned Income Tax Credit](https://savingtoinvest.com/earned-income-tax-credit-eitc-qualification-and-income-threshold-limits/), you automatically qualify for the NJEITC, worth **40% of your federal EITC amount**. You don’t need to file a separate application — claiming the federal credit on your federal return is what triggers eligibility at the state level. Because the NJEITC involves additional verification, returns claiming it are more likely to be selected for manual review, which extends the processing timelines above. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) — I’ll update this page as New Jersey releases new refund and processing data each season.* ## The NJ Retirement Income Exclusion This is one of the more valuable and frequently misunderstood NJ-specific tax breaks. New Jersey’s “total income” test here is a state-specific calculation, distinct from your federal [AGI or MAGI](https://savingtoinvest.com/agi-vs-magi-explained/) — don’t assume your federal number is what New Jersey is checking. If your NJ total income for the year is **$100,000 or less**, you can exclude a set amount of qualifying retirement income (pensions, annuities, and IRA withdrawals) based on your filing status: Filing StatusMaximum Exclusion (Total Income ≤ $100,000)Married Filing Jointly$100,000Single$75,000Married Filing Separately$50,000 If your total income falls between **$100,001 and $150,000**, you can still exclude a reduced percentage of your retirement income — New Jersey publishes the exact phase-out percentages by income band. Above $150,000 in total income, the exclusion is eliminated entirely. Separately, **Social Security benefits are fully exempt from New Jersey income tax regardless of your income level** — a meaningful difference from the federal return, where a portion of Social Security can become taxable depending on your combined income. ## Other Key NJ Deductions **Medical expenses.** You can deduct medical expenses paid for yourself, your spouse or domestic partner, and your dependents that exceed 2% of your New Jersey gross income — a lower, more generous threshold than the 7.5% floor used federally. **Alimony.** Court-ordered alimony payments remain deductible on your NJ return. Child support payments are not deductible. ## Common Issues to Watch Out For **Assuming NJ retirement exclusion rules mirror the federal treatment of retirement income.** They don’t — New Jersey’s exclusion is based on total income thresholds and filing status, and Social Security’s complete state exemption has no federal equivalent. **Not accounting for the NJEITC delay when budgeting around your refund.** If you’re counting on a fast refund and you’re claiming the NJEITC, plan for the longer, manually-reviewed timeline rather than the standard 4-week e-file estimate. **Confusing the $100,000 total-income test with the exclusion amount itself.** The $100,000/$150,000 figures determine whether and how much of the exclusion you get — they are not the exclusion amount, which is a separate, smaller number based on filing status. **Forgetting state and federal deadlines can occasionally diverge.** They’re aligned for 2026, but always confirm the current year’s specific date rather than assuming it will always match April 15. **Not checking for offset programs before assuming a refund error.** A refund that’s [lower than expected](https://savingtoinvest.com/why-is-my-tax-refund-so-low-compared-to-prior-years/) is often explained by a debt offset (unpaid taxes, tolls, child support) rather than a filing mistake — check your notice from the Division of Taxation before assuming something went wrong with your return. Frequently Asked Questions QWhen is the New Jersey state tax filing deadline for 2026? AApril 15, 2026, for 2025 tax year returns - the same day as the federal filing deadline. QHow long does it take to get a New Jersey state tax refund? AE-filed returns typically process in 4+ weeks, paper returns in 12+ weeks, and returns needing additional review or sent by certified mail in 15+ weeks. QWhy is my NJ refund taking longer than expected? AThe most common reason is claiming the NJEITC, which triggers a mandatory manual review. Refund offsets for unpaid debts (taxes, fines, child support) are another common cause of a smaller-than-expected refund. QHow much is the NJEITC worth? A40% of your federal Earned Income Tax Credit amount. If you qualify for the federal EITC, you automatically qualify for the NJEITC without a separate application. QHow much retirement income can I exclude on my NJ tax return? AIf your total income is $100,000 or less: up to $100,000 (married filing jointly), $75,000 (single), or $50,000 (married filing separately). The exclusion phases out between $100,001 and $150,000 in total income and is eliminated above $150,000. QIs Social Security taxed in New Jersey? ANo. Social Security benefits are completely exempt from New Jersey income tax regardless of your income level, unlike the federal return where a portion can be taxable. **Categories:** Taxes and Retirement --- ### [AGI vs. MAGI: The Income Number That Actually Decides Your Roth IRA and ACA Subsidy Eligibility](https://savingtoinvest.com/agi-vs-magi-explained/) **Published:** December 18, 2012 **Author:** Andy **Content:** ### Key Takeaways - Gross income is everything you earned before any adjustments; AGI subtracts specific IRS-allowed deductions from it; MAGI adds some of those same deductions back for a handful of specific eligibility tests. - MAGI, not AGI, determines your Roth IRA contribution eligibility, your traditional IRA deduction if you're covered by a workplace plan, your ACA marketplace subsidy, and your Medicare IRMAA surcharge. - The ACA subsidy cliff is back for 2026: marketplace premium subsidies now cut off entirely at 400% of the federal poverty level ($62,600 for a single person), after the enhanced pandemic-era subsidies expired January 1, 2026. - For 2026, the Roth IRA contribution phase-out is $153,000-$168,000 MAGI for single filers and $242,000-$252,000 for married filing jointly. - Your personal exemption and standard or itemized deduction come after AGI and MAGI - they reduce your taxable income, which is a separate, later calculation. Your gross income, your adjusted gross income (AGI), and your modified adjusted gross income (MAGI) are three different numbers — and mixing them up is one of the most common ways people miscalculate their own eligibility for a Roth IRA, an IRA deduction, or an ACA health insurance subsidy. Covered in this Article: [Toggle](#) - [Gross Income: Where It All Starts](#Gross_Income_Where_It_All_Starts) - [Adjusted Gross Income (AGI): Gross Income Minus Specific Deductions](#Adjusted_Gross_Income_AGI_Gross_Income_Minus_Specific_Deductions) - [Modified Adjusted Gross Income (MAGI): AGI Plus Specific Add-Backs](#Modified_Adjusted_Gross_Income_MAGI_AGI_Plus_Specific_Add-Backs) - [Where MAGI Actually Gets Used](#Where_MAGI_Actually_Gets_Used) - [Two Worked Examples](#Two_Worked_Examples) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027](#Looking_Ahead_2027) ## Gross Income: Where It All Starts Gross income is every dollar you earned during the tax year before any adjustments: wages, self-employment income, interest, dividends, rental income, and unemployment compensation all count. Gifts, inheritances, and tax-exempt interest from municipal bonds don’t. For employees, gross income shows up on your [W-2](https://savingtoinvest.com/when-will-i-get-my-w2-1099-1098-tax-forms/) in Box 1 (wages, tips, and other compensation). For contractors and freelancers, nonemployee compensation is now reported on Form **1099-NEC**, not the old 1099-MISC Box 7 — the IRS separated the two forms starting with the 2020 tax year. ## Adjusted Gross Income (AGI): Gross Income Minus Specific Deductions AGI is your gross income minus a defined list of above-the-line deductions the IRS allows regardless of whether you itemize. For 2026, those include: [traditional IRA contributions](https://savingtoinvest.com/traditional-ira-versus-roth-ira-contribution-and-phase-out-income-limits/) (subject to their own limits), half of self-employment tax, self-employed health insurance premiums, [HSA contributions](https://savingtoinvest.com/hsa-limits-and-tax-rules-how-to-best-utilize-health-savings-accounts/), educator expenses, and the newer One Big Beautiful Bill (OBBB) deduction for [tips and overtime pay](https://savingtoinvest.com/no-tax-on-overtime-who-qualifies-how-to-calculate-your-deduction-with-e/) reported on Schedule 1-A. AGI is the number printed near the bottom of page 1 of your Form 1040, and it’s the starting point for calculating your taxable income — before your standard or itemized deduction is applied and before your [tax bracket](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/) is determined. A lower AGI generally means you qualify for more tax benefits, which is the core idea behind most legal tax planning. ## Modified Adjusted Gross Income (MAGI): AGI Plus Specific Add-Backs MAGI starts with your AGI and adds back specific items depending on which tax benefit you’re checking eligibility for. Common add-backs include the foreign earned income exclusion, tax-exempt interest, and the deduction for traditional IRA contributions (for the Roth eligibility test specifically). Here’s the part that trips people up: MAGI isn’t one universal number. The IRS calculates it slightly differently depending on which credit, deduction, or program you’re checking eligibility for — the MAGI used for Roth IRA eligibility isn’t calculated the same way as the MAGI used for ACA subsidies. ## Where MAGI Actually Gets Used Purpose2026 MAGI ThresholdRoth IRA contribution (single)Phases out $153,000–$168,000Roth IRA contribution (MFJ)Phases out $242,000–$252,000Traditional IRA deduction, covered by workplace plan (single)Phases out $81,000–$91,000Traditional IRA deduction, covered by workplace plan (MFJ)Phases out $129,000–$149,000ACA marketplace premium subsidyCuts off entirely above 400% of the federal poverty level ($62,600 single / $128,600 family of four)Medicare Part B/D IRMAA surchargeBased on MAGI from two years prior *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) — I’ll update this page each year as the IRS adjusts these thresholds for inflation.* ## Two Worked Examples **Maria** is single, earns $145,000 in wages, and contributes $4,000 to a traditional IRA (she’s not covered by a workplace plan, so it’s fully deductible). Her AGI is $141,000. For Roth IRA purposes, her MAGI adds back that IRA deduction, bringing her back to roughly $145,000 — still comfortably under the $153,000 phase-out floor, so she can also make a full Roth contribution in the same year if she chooses a different account. **Tom** is married filing jointly with his spouse, and their combined wages total $255,000. Even though Tom maxes out his 401(k) (which lowers his W-2 Box 1 wages directly, not just his AGI), his household MAGI still lands above the $252,000 Roth phase-out ceiling, so neither he nor his spouse can contribute directly to a Roth IRA that year — he’d need to use the backdoor Roth conversion method instead. ## Common Issues to Watch Out For **Assuming a 401(k) contribution and a traditional IRA contribution work the same way.** A 401(k) contribution is excluded from Box 1 wages entirely (it lowers gross income at the source); a traditional IRA contribution is included in gross income and then subtracted separately to reach AGI. The end result is similar, but the mechanics — and what gets added back for MAGI — differ. **Confusing which MAGI applies.** The add-backs used for Roth IRA eligibility are not identical to the add-backs used for ACA subsidy calculations. If you’re checking eligibility for two different programs, don’t assume the same MAGI figure applies to both. **Forgetting the ACA subsidy cliff returned for 2026.** The [enhanced pandemic-era premium tax credits expired January 1, 2026](https://www.healthcare.gov/glossary/premium-tax-credit/). Marketplace enrollees whose MAGI now lands even one dollar over 400% of the federal poverty level lose their entire premium subsidy, not just a portion of it. **Assuming AGI alone determines credits like the EITC.** The [Earned Income Tax Credit](https://savingtoinvest.com/earned-income-tax-credit-eitc-qualification-and-income-threshold-limits/) actually uses the greater of your AGI or your earned income to test eligibility, which catches people off guard if they have meaningful unearned income (interest, dividends) alongside modest wages. **Not accounting for MAGI’s two-year lookback for Medicare.** Your Medicare IRMAA surcharge this year is based on your MAGI from two tax years ago, so a single high-income year (a home sale, a large Roth conversion) can trigger a surcharge two years later even after your income has dropped back down. ## Looking Ahead: 2027 The IRS typically announces the following year’s inflation-adjusted thresholds — including Roth and traditional IRA phase-out ranges — in the fall. Watch also for whether Congress revisits the ACA’s expired enhanced subsidies before the 2027 plan year, since that would directly change how much marketplace MAGI matters for millions of filers. Frequently Asked Questions QWhat is the difference between AGI and MAGI? AAGI is your gross income minus specific IRS-allowed deductions. MAGI starts with AGI and adds back certain deductions, but only for specific eligibility tests - it's not one universal number and varies slightly by which tax benefit you're checking. QWhere do I find my AGI? AYour AGI appears near the bottom of page 1 of your Form 1040 for the year you filed. Your MAGI isn't printed on your return - you calculate it yourself based on which benefit you're checking eligibility for. QDoes my 401(k) contribution lower my AGI? ANot directly the same way a traditional IRA contribution does. A 401(k) contribution is excluded from your W-2 Box 1 wages before your gross income is even calculated, while a traditional IRA contribution is deducted separately to arrive at AGI. QWhat is the Roth IRA MAGI limit for 2026? AFor 2026, Roth IRA contribution eligibility phases out between $153,000 and $168,000 MAGI for single filers, and between $242,000 and $252,000 for married filing jointly. QIs the ACA subsidy cliff back in 2026? AYes. The enhanced premium tax credits that eliminated the subsidy cliff from 2021 through 2025 expired January 1, 2026. Marketplace subsidies now cut off entirely at 400% of the federal poverty level. QWhy does my Medicare premium depend on income from two years ago? AMedicare's IRMAA surcharge uses a two-year lookback specifically because your most recent tax return isn't available yet when premiums are set for the coming year, so the IRS uses the latest complete data it has on file. **Categories:** Taxes and Retirement **Tags:** AGI, Gross Income, income, MAGI, taxable --- ### [Your Marginal Tax Rate Isn't What You Actually Pay — Here's Your Real 2026 Effective Rate](https://savingtoinvest.com/marginal-vs-effective-tax-rate-explained/) **Published:** February 3, 2010 **Author:** Andy **Content:** ### Key Takeaways - Your marginal tax rate is the rate on your last dollar of income; your effective tax rate is your total tax bill divided by your total income - the two are very different numbers. - For 2026, the seven federal brackets are 10%, 12%, 22%, 24%, 32%, 35%, and 37%, with each rate applying only to the slice of income within that bracket, not your whole income. - A single filer earning $150,000 in 2026 has a 24% marginal rate but pays roughly 16.5% of gross income in federal tax after the standard deduction - an effective rate 7.5 points lower than the marginal rate. - The top 1% of earners paid 38.4% of all federal income taxes in the most recent complete IRS data (tax year 2023), with an average effective rate around 23%. - Moving into a higher tax bracket never reduces your take-home pay overall - only the portion of income above that bracket's threshold is taxed at the higher rate. A single filer earning $150,000 in 2026 has a 24% marginal tax rate — but their actual **effective tax rate** works out to about 16.5% of gross income, after the standard deduction and the progressive bracket structure. That’s the most common tax misunderstanding I run into: people conflate the bracket they’re “in” with the share of their income they actually pay. Covered in this Article: [Toggle](#) - [Marginal Rate vs. Effective Rate](#Marginal_Rate_vs_Effective_Rate) - [Two Worked Examples](#Two_Worked_Examples) - [Who Actually Pays What](#Who_Actually_Pays_What) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027](#Looking_Ahead_2027) ## Marginal Rate vs. Effective Rate Your **marginal tax rate** is the rate applied to your last dollar of taxable income — it tells you what an additional dollar earned would be taxed at, not what your whole income is taxed at. Your **effective tax rate** is your total federal income tax bill divided by your total income. Because the U.S. system is progressive, only the income within each bracket is taxed at that bracket’s rate — the dollars below it are still taxed at the lower rates that applied to them. For 2026, the seven brackets and their [rates](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/) for a single filer are: Taxable Income (Single)Marginal Rate$0 – $12,40010%$12,400 – $50,40012%$50,400 – $105,70022%$105,700 – $201,77524%$201,775 – $256,22532%$256,225 – $640,60035%Over $640,60037% ## Two Worked Examples **Sarah** is single and earns $60,000 in gross wages in 2026. After the $16,100 standard deduction, her taxable income is $43,900 — entirely within the 12% bracket at the margin. Her tax bill works out to $5,020: 10% on the first $12,400 ($1,240), then 12% on the remaining $31,500 ($3,780). That’s an effective rate of 11.4% on her taxable income, or 8.4% on her gross income before the deduction. **Mark** is single and earns $150,000 in gross wages. After the same $16,100 standard deduction, his taxable income is $133,900 — high enough to reach the 24% bracket at the margin. His tax works out to $24,734: 10% on the first $12,400, 12% on the next $38,000, 22% on the next $55,300, and 24% only on the remaining $28,200 that falls above the $105,700 threshold. That’s an effective rate of 18.5% on his taxable income, or 16.5% on his gross income — nowhere close to the 24% marginal rate he’s technically “in.” *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) — I’ll update the bracket table and examples each year when the IRS releases new inflation-adjusted figures.* ## Who Actually Pays What Based on the most recent complete IRS data (tax year 2023), the top 1% of earners — those with adjusted gross income above roughly $675,000 — paid 38.4% of all federal income taxes collected, with an average effective rate of about 23%. The bottom half of earners paid a combined share in the low single digits, reflecting the standard deduction, refundable credits like the [Earned Income Tax Credit](https://savingtoinvest.com/earned-income-tax-credit-eitc-qualification-and-income-threshold-limits/), and lower marginal rates at lower income levels. This is the same progressive structure behind why moving into a higher bracket never actually reduces your take-home pay overall. A raise that pushes part of your income into the next bracket only taxes that specific slice at the higher rate — every dollar below the threshold keeps being taxed the same as before. ## Common Issues to Watch Out For **Turning down a raise or overtime to “avoid a higher bracket.”** This is based on a misunderstanding — only the income above the new bracket threshold gets taxed at the higher rate, so a raise never results in less take-home pay overall. **Confusing effective rate with marginal rate when comparing your situation to someone else’s.** Two people with the same marginal bracket can have very different effective rates depending on deductions, credits, and how much of their income falls in each bracket below the top one. **Forgetting that state income tax is separate.** The brackets above are federal only — your combined effective rate including state tax (in states that have one) will be higher. **Not accounting for the standard deduction when estimating your bracket.** Your marginal bracket is based on taxable income after deductions, not your gross salary — a $150,000 salary doesn’t mean $150,000 of taxable income, and it’s worth understanding the difference between your [gross income, AGI, and taxable income](https://savingtoinvest.com/figuring-your-irs-taxable-income-adjustable-gross-income-agi-vs-modified-adjustable-gross-income-magi/) if you want to estimate your own bracket accurately. **Forgetting that capital gains use a separate rate schedule.** Long-term [capital gains](https://savingtoinvest.com/capital-gains-tax-short-and-long-term-rates-plus-other-factors-to-consider/) are taxed at 0%, 15%, or 20% depending on your income — not at your ordinary marginal rate — which is a common point of confusion when estimating taxes on investment income. **Assuming credits and deductions work the same way.** A deduction reduces the income that gets taxed; a credit reduces your tax bill dollar-for-dollar. A $1,000 credit is worth more than a $1,000 deduction for the same taxpayer. ## Looking Ahead: 2027 The IRS typically releases the following year’s inflation-adjusted bracket thresholds in the fall. Based on recent inflation trends, I’d expect each 2026 threshold to shift up modestly for 2027 — the brackets themselves (10% through 37%) are set permanently under the One Big Beautiful Bill (OBBB) and aren’t expected to change, only the dollar thresholds where each one kicks in. Frequently Asked Questions QWhat's the difference between marginal and effective tax rate? AYour marginal rate is the tax rate on your last dollar of income. Your effective rate is your total tax bill divided by your total income - almost always lower than your marginal rate, because of the progressive bracket structure. QIf I get a raise that pushes me into a higher bracket, will I take home less money? ANo. Only the portion of income above the new bracket's threshold is taxed at the higher rate - every dollar below that threshold keeps being taxed the same as before the raise. QWhat are the 2026 federal tax brackets for a single filer? A10% up to $12,400, 12% up to $50,400, 22% up to $105,700, 24% up to $201,775, 32% up to $256,225, 35% up to $640,600, and 37% above that. QHow much does the top 1% pay in federal taxes? ABased on the most recent complete IRS data (tax year 2023), the top 1% of earners paid 38.4% of all federal income taxes, at an average effective rate of about 23%. QIs a tax credit or a tax deduction worth more? AA credit, generally. A deduction only reduces the income subject to tax, while a credit reduces your actual tax bill dollar-for-dollar. QDoes the marginal tax rate include state income tax? ANo. The bracket rates and thresholds described here are federal only - most states with an income tax apply their own separate brackets on top of the federal ones. **Categories:** Personal Finance and Money, Taxes and Retirement --- ### [How Marriage Changes Your Taxes in 2026 (Plus 6 Other Money Decisions to Make First)](https://savingtoinvest.com/how-marriage-changes-your-taxes-and-finances/) **Published:** October 12, 2010 **Author:** Andy **Content:** ### Key Takeaways - The standard deduction for married filing jointly is $32,200 in 2026, close to double the $16,100 a single filer or married-filing-separately taxpayer gets. - Your filing status for the entire tax year is determined by your marital status on December 31 - get married any day of the year, and you file as married for that whole year. - Married filing jointly is the better option in the large majority of cases; married filing separately usually only makes sense in specific situations like income-driven student loan repayment or separating liability for a spouse's tax issues. - Combining bank accounts, mortgages, and other joint decisions have no direct tax implications on their own - the tax questions are really about filing status, not account structure. - The most-overlooked money conversation before marriage isn't taxes - it's what happens to your combined finances (and any kids from a prior relationship) if one of you dies without an updated will or beneficiary designations. The standard deduction for married filing jointly is $32,200 in 2026 — close to double the $16,100 a single filer gets, according to the [IRS’s 2026 inflation adjustments](https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill). That’s usually the single biggest tax change marriage brings, but it’s far from the only one. Your filing status is locked in by your marital status on December 31 of the tax year — get married any time during the year, even December 30, and you file as married for the entire year. There’s no prorating based on when the wedding happened. Covered in this Article: [Toggle](#) - [Married Filing Jointly vs. Separately](#Married_Filing_Jointly_vs_Separately) - [Six More Money Decisions to Make Before the Wedding](#Six_More_Money_Decisions_to_Make_Before_the_Wedding) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## Married Filing Jointly vs. Separately For almost everyone, **married filing jointly (MFJ)** is the better option. You get the larger $32,200 standard deduction, [tax brackets](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/) that are roughly double the single-filer thresholds at every level, and access to credits that are reduced or eliminated entirely under separate filing — including the [Earned Income Tax Credit](https://savingtoinvest.com/earned-income-tax-credit-eitc-qualification-and-income-threshold-limits/), education credits, and most of the [Child Tax Credit](https://savingtoinvest.com/child-and-kiddie-tax-credit-and-income-thresholds/). **Married filing separately (MFS)** usually only makes sense in narrower situations: separating your tax liability from a spouse who has unresolved tax issues or is being audited, qualifying for income-driven student loan repayment plans that only count your individual income, or in the rare case where filing separately actually lowers your combined tax bill due to specific deduction phase-outs. Most tax software — including [TurboTax](https://savingtoinvest.com/turbotax-review-great-tax-filing-software-with-live-support-for-a-premium-price/) and other major providers — will calculate your return both ways so you can compare before deciding. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) — I’ll update this page each year when the IRS releases the new standard deduction and bracket figures.* ## Six More Money Decisions to Make Before the Wedding **Combining bank accounts** has no tax implications either way — it’s purely a personal and logistical decision, not something the IRS cares about. Whether you keep separate accounts, joint accounts, or a mix is entirely up to you and your spouse. **Joint vs. separate credit** matters because lenders will look at both of your credit histories on a joint application like a mortgage. Check each other’s credit reports before applying for anything major, and address any issues ahead of time rather than discovering them during underwriting. **Home ownership and the mortgage** should generally include both spouses if you’re both contributing financially, since it protects both parties’ claim to the equity if you divorce later, and simplifies inheritance if one spouse dies. Keeping one spouse off the mortgage and deed creates real complications in either scenario. **Children from a prior relationship** need any custody, support, or care arrangements documented legally if they aren’t already, since informal verbal agreements don’t hold up well if a dispute arises after remarriage. **Differing spending habits** are one of the most common sources of marital conflict, and they’re avoidable with an upfront conversation — many couples land on a set “no questions asked” discretionary amount each month for each partner, separate from joint household spending. **Estate planning** is the one people put off longest. Without a will, updated beneficiary designations, and (if you have young kids) named guardians, your spouse and family can end up in a lengthy legal process at the worst possible time. This is also when it’s worth reviewing whether you have [adequate life insurance coverage](https://savingtoinvest.com/life-insurance-rates-and-how-much-coverage-you-need/) for your new combined financial picture, not just what you had as a single person. ## Common Issues to Watch Out For **Not updating your W-4 withholding after marriage.** Your combined income can push you into a different bracket than either of you was in individually — update your Form W-4 with your employer so your withholding matches your new joint tax situation. **Forgetting to update your name with the Social Security Administration if you change it.** A mismatch between the name on your tax return and the name on file with the SSA can delay processing of your return and any refund. **Not comparing MFJ vs. MFS before automatically defaulting to joint.** It’s the better option in the large majority of cases, but running the numbers both ways takes only a few minutes with most tax software and confirms you’re not leaving money on the table in your specific situation. **Overlooking retirement account beneficiary designations.** These override what your will says — an outdated beneficiary form naming an ex or a parent can send retirement funds to the wrong person even with a fully updated will. **Assuming joint accounts don’t need both signatures for major decisions.** Some joint accounts are structured so either party can act unilaterally — know how yours works before assuming your spouse can’t move money without your knowledge, or vice versa. Frequently Asked Questions QWhat is the standard deduction for married filing jointly in 2026? A$32,200, compared to $16,100 for single filers or married individuals filing separately. QDoes my filing status depend on when during the year I got married? ANo. Your marital status on December 31 determines your filing status for the entire tax year, regardless of whether you married in January or December. QIs married filing jointly always better than filing separately? AIn most cases, yes - you get a larger standard deduction, more favorable brackets, and access to credits reduced under separate filing. Exceptions include separating liability from a spouse's tax issues or qualifying for certain income-driven student loan plans. QDo I need to combine bank accounts when I get married? ANo, and there's no tax reason to. Combining accounts is a personal and logistical choice with no direct effect on your tax return. QWhat's the most commonly overlooked money task before getting married? AEstate planning - updating (or creating) a will, retirement account beneficiary designations, and life insurance coverage for your new combined household. QDo I need to update anything with the IRS or SSA after getting married? AYes - update your W-4 withholding with your employer to reflect your new joint income, and if you change your name, update it with the Social Security Administration so it matches the name on your tax return. **Categories:** Career and Relationships **Tags:** credit, debt, IRS, marriage, saving, spending --- ### [How to Choose a Tax Preparer in 2026 — What's Actually Required (and What Isn't)](https://savingtoinvest.com/how-to-choose-a-tax-preparer/) **Published:** January 6, 2010 **Author:** Andy **Content:** ### Key Takeaways - Every paid tax preparer must have a valid Preparer Tax Identification Number (PTIN) for the current filing year - the 2026 PTIN renewal fee is $18.75. - Beyond the PTIN, there's no federal license required for most preparers. A 2013 court ruling (Loving v. IRS) struck down the IRS's attempt to mandate competency testing for unenrolled preparers, so credentials still vary widely. - Only attorneys, CPAs, and Enrolled Agents (EAs) have unlimited rights to represent you before the IRS in audits, appeals, and collections. - The IRS's Annual Filing Season Program (AFSP) is a voluntary continuing-education credential for non-credentialed preparers - completing it gets them listed in the IRS's public preparer directory. - Ghost preparers - who prepare your return but refuse to sign it or include their PTIN - are one of the IRS's 2026 'Dirty Dozen' tax scam warnings. - Fee structures based on a percentage of your refund, or promises of an unusually large refund before reviewing your documents, are classic warning signs of a bad preparer. Every paid tax return preparer in the U.S. must have a valid Preparer Tax Identification Number (PTIN) for the current filing year — the [2026 PTIN renewal fee is $18.75](https://www.irs.gov/tax-professionals/ptin-requirements-for-tax-return-preparers). More than half of taxpayers use a paid preparer rather than filing themselves, so knowing what actually separates a qualified preparer from a risky one matters. Here’s what changed since I first wrote about this: back in 2010, the IRS tried to require competency testing and continuing education for all paid preparers, not just attorneys, CPAs, and Enrolled Agents. A 2013 federal court ruling, *Loving v. IRS*, struck that down — the court found the IRS didn’t have the statutory authority to impose it. The PTIN requirement survived; the mandatory testing didn’t. Covered in this Article: [Toggle](#) - [What’s Actually Required vs. What Isn’t](#Whats_Actually_Required_vs_What_Isnt) - [Ghost Preparers: A 2026 IRS Warning](#Ghost_Preparers_A_2026_IRS_Warning) - [Red Flags to Watch For](#Red_Flags_to_Watch_For) - [How to Actually Vet a Preparer](#How_to_Actually_Vet_a_Preparer) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## What’s Actually Required vs. What Isn’t **Required for everyone who prepares returns for pay:** A current PTIN. That’s it at the federal level for most preparers. **Only required for attorneys, CPAs, and Enrolled Agents:** State bar admission (attorneys), state CPA licensure, or passing the IRS’s Special Enrollment Examination (EAs). These three credentials are the only ones with **unlimited representation rights** — meaning they can represent you before the IRS in an audit, appeal, or collections matter, regardless of who prepared the return in question. **Voluntary for everyone else:** The IRS’s **Annual Filing Season Program (AFSP)** lets non-credentialed preparers complete continuing education each year and earn an AFSP Record of Completion. Preparers who do this — along with attorneys, CPAs, and EAs — get listed in the IRS’s [public preparer directory](https://irs.treasury.gov/rpo/rpo.jsf), which is worth checking before you hire anyone. A preparer without any of these credentials can still legally prepare your return for a fee. They just can’t represent you before the IRS afterward if something goes wrong, and they aren’t required to have passed any competency check. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) — I’ll update this page if Congress or the IRS revisits preparer regulation, which comes up in tax legislation debates periodically.* ## Ghost Preparers: A 2026 IRS Warning The IRS’s [2026 Dirty Dozen list of tax scams](https://www.irs.gov/newsroom/dirty-dozen-tax-scams-for-2026-irs-reminds-taxpayers-to-watch-out-for-dangerous-threats) specifically calls out “ghost preparers” — people who prepare a return for a fee but refuse to sign it as the paid preparer or include their PTIN on the return. This isn’t a technicality. Every paid preparer is legally required to sign returns they prepare and include their PTIN. A ghost preparer disappears once the return is filed, leaving you as the only name on record if the IRS has questions. Some ghost preparers also inflate deductions or credits to promise a bigger refund, then vanish before the IRS catches the error — leaving the taxpayer, not the preparer, on the hook for the back taxes, interest, and penalties. A ghost preparer who collects your Social Security number and income documents is also a real [identity theft](https://savingtoinvest.com/hacking-social-security-numbers-and-how/) exposure, since you have no way to verify what they do with that information after they disappear. ## Red Flags to Watch For **Fees based on a percentage of your refund.** A legitimate preparer charges based on the complexity of your return, not a cut of what you get back — the latter creates an incentive to inflate your refund artificially. **Refusing to sign the return or provide a PTIN.** This is illegal for a paid preparer and a hallmark of the ghost preparer scam described above. **Promises of a large refund before seeing your documents.** No preparer can accurately estimate your refund without reviewing your actual income, withholding, and deduction information first. **No permanent business address or way to reach them after filing season.** If you’re audited two years from now, you need someone who’s still findable. **Asking you to sign a blank or incomplete return.** Never sign a return with blank fields you haven’t reviewed yourself. ## How to Actually Vet a Preparer Check the [IRS Directory of Federal Tax Return Preparers](https://irs.treasury.gov/rpo/rpo.jsf) for their credentials and AFSP status. Ask directly whether they’re an attorney, CPA, or EA if you expect your return to be complex enough that you might need representation later — a rental property, self-employment income, or a business, for example. Get a referral from someone you trust who has used the same preparer for multiple years, and ask what the total fee will be, including state returns, before you commit. If your return is simple — a single W-2, standard deduction, no dependents beyond the basics — tax software like [TurboTax](https://savingtoinvest.com/turbotax-review-great-tax-filing-software-with-live-support-for-a-premium-price/) or a [comparison of the major filing options](https://savingtoinvest.com/the-best-tax-software-and-free-filing-options-as-tax-filing-goes-primarily-online/) may cost less and take less time than finding and vetting a preparer. Whichever route you go, make sure whoever’s handling your return understands your specific situation — the current [federal tax brackets](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/), what’s changed under the One Big Beautiful Bill, and how it affects your [refund timing](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) once you file. ## Common Issues to Watch Out For **Assuming all preparers are equally accountable.** Only attorneys, CPAs, and EAs can represent you if the IRS has questions about a return years later — an unenrolled preparer without AFSP status can’t, even if they prepared the return. **Not checking the PTIN is current.** PTINs expire annually; ask to see it and note the year, since a preparer using an expired or fabricated PTIN is a serious red flag. **Being talked into deductions or credits you can’t document.** If a preparer suggests a deduction and can’t explain the documentation you’d need to support it in an audit, that’s a warning sign, not a bonus. **Not keeping a copy of your own return.** You’re required to receive a copy of your prepared return — keep it along with the underlying documents (W-2s, 1099s, receipts) for at least three years. **Confusing “prepared my return” with “can represent me.”** A preparer with no credentials beyond a PTIN generally cannot represent you in an audit of a return they prepared, even though they prepared it — this catches people off guard every filing season. Frequently Asked Questions QDoes every tax preparer need a license? ANo. Every paid preparer needs a current PTIN, but only attorneys, CPAs, and Enrolled Agents need a professional license or IRS-administered exam. Other preparers can operate with just a PTIN and no additional credential. QWhat is a ghost preparer? ASomeone who prepares your tax return for a fee but refuses to sign it or include their PTIN - illegal under IRS rules, and flagged on the IRS's 2026 Dirty Dozen list of tax scams. They typically disappear after filing season, leaving you responsible if the IRS has questions. QWho can represent me if the IRS audits my return? AOnly attorneys, CPAs, and Enrolled Agents have unlimited representation rights before the IRS. AFSP-credentialed preparers have limited representation rights only for returns they personally prepared. QWhat is the Annual Filing Season Program? AA voluntary IRS continuing-education program for non-credentialed preparers. Completing it each year gets a preparer listed in the IRS's public preparer directory alongside attorneys, CPAs, and EAs. QHow much does a PTIN cost in 2026? AThe 2026 PTIN renewal fee is $18.75, paid annually by every preparer who is compensated for preparing federal tax returns. QIs it illegal for a tax preparer to charge based on my refund size? AIt's not automatically illegal in every case, but it's widely considered a major red flag and is discouraged by the IRS, since it creates an incentive to inflate deductions or credits to increase the preparer's fee. **Categories:** Taxes and Retirement --- ### [The Federal Estate Tax Exemption Is $15 Million in 2026 — And Now Permanent](https://savingtoinvest.com/federal-estate-tax-exemption-and-gift-tax-limits/) **Published:** January 4, 2011 **Author:** Andy **Content:** ### Key Takeaways - The federal estate tax exemption is $15 million per person for 2026 ($30 million for a married couple using portability), up from $13.99 million in 2025. - The One Big Beautiful Bill Act (OBBB), signed in 2025, made this $15 million exemption permanent starting in 2026 - the exemption is no longer scheduled to sunset back down to roughly half that amount. - Starting in 2027, the exemption will be indexed for inflation each year rather than staying fixed at $15 million. - The annual gift tax exclusion is $19,000 per recipient for 2026 (unchanged from 2025) - separate from, and in addition to, the $15 million lifetime exemption. - Fewer than 0.2% of estates owe any federal estate tax at all, since the exemption is so high relative to most households' net worth. - State estate and inheritance taxes are separate from the federal exemption and often have much lower thresholds - check your own state's rules if you live in one of the roughly dozen states that still tax estates or inheritances. The federal estate tax exemption is $15 million per person for 2026 — up from $13.99 million in 2025, according to the [IRS’s 2026 inflation adjustments](https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill). A married couple can shield up to $30 million combined using portability. This isn’t just another annual inflation bump. The One Big Beautiful Bill Act (OBBB), signed into law in 2025, made the $15 million exemption permanent. Before that law passed, the doubled exemption from the 2017 Tax Cuts and Jobs Act was scheduled to sunset at the end of 2025, which would have cut the exemption roughly in half starting in 2026. That sunset no longer applies. Section 70106 of the OBBB rewrote the relevant part of the tax code to set the exemption at $15 million starting in 2026, with no new expiration date attached — the same law that reshaped the [2026 federal income tax brackets](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/) touched estate and gift tax rules too. Covered in this Article: [Toggle](#) - [Why This Almost Didn’t Happen](#Why_This_Almost_Didnt_Happen) - [How the Exemption Actually Works](#How_the_Exemption_Actually_Works) - [The Annual Gift Tax Exclusion Is a Separate, Smaller Number](#The_Annual_Gift_Tax_Exclusion_Is_a_Separate_Smaller_Number) - [Two Examples](#Two_Examples) - [State Estate and Inheritance Taxes Are a Different Story](#State_Estate_and_Inheritance_Taxes_Are_a_Different_Story) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027](#Looking_Ahead_2027) ## Why This Almost Didn’t Happen For most of 2024 and 2025, estate planners were telling clients to prepare for the exemption to roughly halve. The 2017 tax law had temporarily doubled the exemption, but that provision was written to expire after 2025 unless Congress acted. Without the OBBB, the exemption would have dropped to somewhere around $7 million to $7.5 million per person for 2026 — still a large number, but one that would have pulled a meaningfully larger group of estates (people with a paid-off home, a retirement account, some investments, and a life insurance policy) into taxable territory. The OBBB avoided that entirely by locking in the higher number and making it permanent rather than temporary. ## How the Exemption Actually Works The estate tax exemption is a lifetime, unified exemption — it covers both what you give away while you’re alive (above the annual gift exclusion) and what you leave behind at death. Every taxable gift you make during your life reduces the exemption available to your estate later. Amounts above the exemption are taxed at a top rate of 40%. Because the exemption is so high, this only ever applies to genuinely large estates — real estate, business interests, retirement accounts, investment portfolios, and life insurance proceeds not held in an irrevocable trust all count toward the total. **Portability** lets a surviving spouse use any unused exemption from a deceased spouse, provided the executor files an estate tax return (Form 706) electing portability, even if no tax is owed. This is how a married couple can shield up to $30 million combined rather than being limited to $15 million if the first spouse’s unused exemption simply disappears. Assets that get a **step-up in basis** at death (most inherited property does) are a related piece of this — heirs generally don’t owe capital gains tax on appreciation that happened before the original owner died. I cover how that interacts with [capital gains tax rates](https://savingtoinvest.com/capital-gains-tax-short-and-long-term-rates-plus-other-factors-to-consider/) in more detail separately, since it’s one of the more valuable and least understood pieces of estate planning. ## The Annual Gift Tax Exclusion Is a Separate, Smaller Number The **annual gift tax exclusion** is $19,000 per recipient for 2026, unchanged from 2025. You can give this amount to as many people as you want each year — no limit on the number of recipients — without touching your $15 million lifetime exemption or filing a gift tax return. Married couples can combine their exclusions through “gift splitting,” letting them give up to $38,000 per recipient per year tax-free. A grandparent with four grandchildren, for example, could give away $76,000 a year ($19,000 x 4) without using any of their lifetime exemption. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) — I’ll update this page each fall when the IRS releases the following year’s inflation-adjusted figures.* ## Two Examples **Mark** is unmarried and has an estate worth $18 million when he dies in 2026. His exemption covers the first $15 million tax-free. The remaining $3 million is taxed at 40%, for an estate tax bill of $1.2 million — before considering any deductions, charitable gifts, or prior taxable gifts that would have already used up part of his exemption. **Sarah and Tom** are married with a combined estate of $22 million. Sarah dies first in 2026 without having used any of her exemption; her executor files Form 706 and elects portability, preserving her full $15 million for Tom. When Tom dies years later, he has his own $15 million exemption plus Sarah’s $15 million, giving him $30 million in total shelter — more than enough to cover the $22 million estate with no federal estate tax owed at all. ## State Estate and Inheritance Taxes Are a Different Story The $15 million figure is a federal number only. Roughly a dozen states, plus the District of Columbia, impose their own estate or inheritance tax with exemption thresholds far below the federal level — some as low as $1 million to $2 million. If you live in (or own property in) one of these states, a much smaller estate than $15 million can still trigger a state-level tax, even though it owes nothing federally. This is worth checking directly with your state’s department of revenue, since the list of states and their thresholds changes periodically. For estates with a large share of net worth tied up in a house, a business, or retirement accounts, liquidity to actually pay a state-level tax bill (or cover expenses while an estate is settled) is a real practical concern — [life insurance](https://savingtoinvest.com/life-insurance-rates-and-how-much-coverage-you-need/) held in an irrevocable trust is one of the more common tools used to solve for that without forcing an estate to sell off assets. And if part of what you’re leaving behind is a retirement account, it’s worth pairing this with a look at how the [inherited IRA 10-year distribution rule](https://savingtoinvest.com/avoid-costly-mistakes-when-inheriting-an-ira-in-2026-tax-smart-tips/) affects your heirs, since that’s a separate set of rules from the estate tax exemption entirely. ## Common Issues to Watch Out For **Not filing for portability.** I see this one a lot. If the first spouse dies and the estate is under the filing threshold, families often skip filing Form 706 to save the accountant’s fee — but that also forfeits the portability election, permanently losing the deceased spouse’s unused exemption. **Assuming lifetime gifts don’t count.** Large gifts made years before death still reduce the exemption available at death, even though they were tax-free at the time under the annual exclusion or by using part of the lifetime exemption. **Confusing federal and state thresholds.** An estate well under $15 million can still owe state estate or inheritance tax in states with their own, much lower exemption levels. **Overlooking illiquid asset valuation.** Business interests, real estate, and closely-held company shares can be hard to value precisely, and disputes with the IRS over valuation are one of the more common sources of estate tax controversy. **Not revisiting an old estate plan.** Trusts and wills drafted years ago — especially ones written when the exemption was much lower — can contain formula clauses that no longer make sense at $15 million. If your plan predates the OBBB, it’s worth a review, and it’s a good excuse to revisit your broader [personal finance plan](https://savingtoinvest.com/a-to-z-of-good-personal-finance/) at the same time rather than looking at the estate documents in isolation. ## Looking Ahead: 2027 Starting in 2027, the $15 million exemption will be indexed for inflation for the first time under the new permanent law, rather than staying fixed. Based on recent inflation trends, I’d expect the 2027 figure to land somewhere in the $15.3 million to $15.6 million range per person, though the IRS won’t confirm the exact number until its annual inflation adjustments are published, typically in October or November of the prior year. The annual gift tax exclusion could also tick up from $19,000 to $20,000 for 2027, since that figure moves in $1,000 increments as inflation catches up to the next threshold. I’ll update this page once the official 2027 Revenue Procedure is out. Frequently Asked Questions QWhat is the federal estate tax exemption for 2026? A$15 million per individual, or $30 million for a married couple using portability - up from $13.99 million in 2025. This amount was made permanent by the One Big Beautiful Bill Act (OBBB). QIs the $15 million estate tax exemption permanent? AYes. The OBBB removed the scheduled sunset that would have cut the exemption roughly in half starting in 2026, and set $15 million as the new permanent base, indexed for inflation starting in 2027. QWhat's the difference between the estate tax exemption and the annual gift tax exclusion? AThe $15 million exemption is a lifetime total covering gifts and your estate combined. The $19,000 annual gift tax exclusion for 2026 is separate - you can give that amount to any number of people each year without touching your lifetime exemption at all. QWhat is portability and how do I get it? APortability lets a surviving spouse use their deceased spouse's unused exemption. The executor must file Form 706 and elect portability, even if the estate owes no tax and wouldn't otherwise be required to file. QDo I need to worry about the estate tax if my estate is under $15 million? ANot at the federal level, in most cases. But check your state's rules - several states impose their own estate or inheritance tax with exemption thresholds far below the federal amount. QWhat happens to the estate tax exemption after 2026? AIt's permanent, but starting in 2027 it will be adjusted for inflation each year rather than staying fixed at exactly $15 million. Expect a modest increase, with the official number released by the IRS in the fall. **Categories:** Government Rebates and Payments **Tags:** 2010, 2011, Estate Tax --- ### [Buying Long-Term Care Insurance To Save For The High Cost of Assisted Living](https://savingtoinvest.com/buying-long-term-care-insurance-to-save-for-the-high-cost-of-assisted-living/) **Published:** September 28, 2010 **Author:** Andy **Content:** ### Key Takeaways - The national median cost of assisted living is now $74,400/year ($6,200/month) - up 44% over the past five years, nearly double the rate of inflation, per CareScout's 2025 Cost of Care Survey. - A private nursing home room now runs $129,575/year on average; a semi-private room costs $114,975/year ($315/day). - Full-time home health aide care (about 44 hours/week) averages roughly $80,080/year at the national median hourly rate of $35. - A Washington Post analysis found more than 10% of seniors studied died with nothing left, as rising elder-care costs eat into the $68-84 trillion in wealth baby boomers are expected to pass down over the next two decades. - Medicare covers only a narrow slice of nursing home care - up to 100 days per benefit period, with a $217/day coinsurance charge for days 21-100 (2026) - and doesn't cover ongoing custodial or assisted-living care at all. - Traditional standalone long-term care insurance has largely disappeared as insurers exited the market after mispricing risk; most new policies sold today are 'hybrid' life-insurance/long-term-care combination products instead. The national median cost of an assisted living community is now $74,400 a year — up 44% over just five years, nearly double the pace of inflation, according to [CareScout’s 2025 Cost of Care Survey](https://www.carescout.com/cost-of-care). A private nursing home room runs even higher, averaging $129,575 a year. Those numbers explain a pattern a recent [Washington Post analysis](https://www.washingtonpost.com/business/2026/07/22/elder-care-costs-are-rising-depriving-families-their-inheritance/) found: looking at thousands of seniors’ final decade of finances, more than 10% died with nothing left. Baby boomers control over half of U.S. household wealth, and an estimated $68 trillion to $84 trillion was expected to pass down to heirs over the next two decades — but rising elder-care costs are quietly eating into that transfer, one nursing home bill at a time. Long-term care doesn’t just affect the very elderly, either. Nearly two-thirds of people over 65 will need some type of paid or family-provided care, but roughly 40% of people currently receiving long-term care services are between 18 and 64. Even more people in that age range are affected indirectly, as adult children who end up covering costs for an aging parent. Covered in this Article: [Toggle](#) - [How Much Long-Term Care Actually Costs Now](#How_Much_Long-Term_Care_Actually_Costs_Now) - [What Medicare Actually Covers (Less Than Most People Think)](#What_Medicare_Actually_Covers_Less_Than_Most_People_Think) - [What Medicaid Covers (After You’ve Spent Down)](#What_Medicaid_Covers_After_Youve_Spent_Down) - [How to Actually Pay for Long-Term Care](#How_to_Actually_Pay_for_Long-Term_Care) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027](#Looking_Ahead_2027) ## How Much Long-Term Care Actually Costs Now Here’s the current national median pricing, per CareScout’s 2025 survey: Type of CareMedian Annual CostMedian RateAssisted living community$74,400/year$6,200/monthNursing home, semi-private room$114,975/year$315/dayNursing home, private room$129,575/year~$355/dayHome health aide (full-time, ~44 hrs/week)~$80,080/year$35/hour These are national medians — costs run considerably higher in expensive metro areas and for specialized memory care, and considerably lower in parts of the Midwest and South. [Home care isn’t automatically the cheaper option](https://savingtoinvest.com/what-you-can-do-about-the-rising-cost-of-home-insurance/) once you need round-the-clock coverage rather than a few hours a day — at full-time hours, it can cost as much as a nursing home. ## What Medicare Actually Covers (Less Than Most People Think) A common misconception is that Medicare pays for long-term care. It doesn’t — not the ongoing, custodial kind most people picture. Medicare will only pay for skilled nursing facility care, and only if all of these apply: you had a qualifying 3-day inpatient hospital stay, you’re admitted to a Medicare-certified skilled nursing facility within 30 days of that hospital discharge, you need daily skilled nursing or rehabilitation care for the same condition you were hospitalized for, and a doctor certifies that need. Even then, coverage is time-limited and not free. For 2026: Medicare covers days 1–20 in full (after the standard hospital deductible), then charges a $217/day coinsurance for days 21–100, then covers nothing at all past day 100. That means even a beneficiary who qualifies for the maximum Medicare-covered stay still owes over $17,000 out of pocket in coinsurance alone within the first 100 days — and that’s only for skilled nursing rehab, not for an ongoing assisted living stay or in-home custodial care. ## What Medicaid Covers (After You’ve Spent Down) Medicaid will cover long-term nursing home care, unlike Medicare — but only once you’ve spent down to your state’s asset limit. In most states that’s just $2,000 for a single applicant, though it varies significantly: California’s limit is $130,000 as of 2026, while Illinois’s is $17,500. Medicaid also applies a 60-month “look-back” period, reviewing the five years of financial history before your application to check for asset transfers made below fair market value. Giving away assets to qualify sooner than your actual spend-down would allow can trigger a penalty period during which Medicaid won’t pay for care. For married couples where only one spouse needs care, the non-applicant spouse can typically keep significantly more — up to $162,660 in countable assets as of January 2026, under the Community Spouse Resource Allowance. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) — I’ll update this page as new Cost of Care survey data and Medicare/Medicaid figures come out each year.* ## How to Actually Pay for Long-Term Care **Long-term care insurance** remains one of the main tools for protecting savings from a long-term care event, but the market has changed substantially. Many major insurers exited the standalone LTC insurance business after badly mispricing risk in the 1990s and 2000s — underestimating both how long people would live and how much care would cost — which led to massive premium increases (often 50–100%) on existing policyholders. As a result, most new policies sold today are **hybrid products** that combine long-term care coverage with permanent [life insurance](https://savingtoinvest.com/life-insurance-rates-and-how-much-coverage-you-need/). The appeal is straightforward: if you never need care, your beneficiaries still receive a tax-free death benefit, removing the “pay premiums for decades and get nothing back” risk that turned people off traditional standalone policies. Premiums for either type vary widely by age, health, gender, and coverage amount — commonly anywhere from about $80 to $530+ per month. **Tax treatment:** premiums for a qualifying long-term care insurance policy count as a medical expense, deductible to the extent that they, combined with your other unreimbursed medical expenses, exceed 7.5% of your adjusted gross income. **Self-funding** is the other realistic path, especially for people who can’t qualify for insurance due to age or health, or who’ve decided the premiums aren’t worth it. This usually means keeping a dedicated pool of savings — a [high-yield savings account](https://savingtoinvest.com/high-yield-savings/) or investment account earmarked specifically for care costs — separate from retirement income you’re counting on for everyday expenses. It’s the same “build the safety net before you need it” logic behind most of the moves in my [guide to good personal finance](https://savingtoinvest.com/a-to-z-of-good-personal-finance/). Given how much of this potential cost intersects with the money you’re hoping to eventually pass on, it’s worth reviewing your long-term care plan alongside your broader estate plan — including how [inherited retirement accounts](https://savingtoinvest.com/avoid-costly-mistakes-when-inheriting-an-ira-in-2026-tax-smart-tips/) get treated, since a parent’s long-term care spend-down can directly change what’s left to leave behind. ## Common Issues to Watch Out For **Assuming Medicare will cover an extended nursing home stay.** It caps out at 100 days per benefit period, with real out-of-pocket costs before that cap even hits, and doesn’t cover custodial or assisted-living care at all. **Giving away assets to qualify for Medicaid faster.** The 60-month look-back period can trigger a penalty period that delays coverage — well-intentioned gifting to adult children is one of the most common mistakes families make here. **Waiting too long to buy long-term care insurance.** Premiums rise sharply with age, and a health issue can make you uninsurable for either a standalone or hybrid policy — this is a “buy it while you don’t need it yet” product. **Not accounting for regional cost differences.** National medians can be misleading; the same care can cost dramatically more in a high-cost metro area than the figures above suggest, or noticeably less in lower-cost regions. **Assuming a fixed Social Security income will stretch to cover care costs.** Even with [annual COLA increases](https://savingtoinvest.com/social-security-tax-and-cost-of-living-adjustment-cola/), most retirees’ guaranteed income falls far short of a $74,400+ annual care bill without additional savings, insurance, or family support. ## Looking Ahead: 2027 Watch for CareScout’s next Cost of Care Survey (typically released in late fall) to see whether the recent pace of increases — nearly double inflation over the last five years — continues or moderates. I’ll also be watching whether more insurers exit the standalone long-term care market in favor of hybrid products, a trend that’s been consistent for several years running. On the government side, Medicare’s 2027 coinsurance and deductible amounts are typically announced in the fall, and Medicaid asset limits and the Community Spouse Resource Allowance are adjusted annually as well — I’ll update the figures on this page once each is finalized. Frequently Asked Questions QHow much does long-term care actually cost in 2026? AThe national median is $74,400/year for assisted living, $114,975/year for a semi-private nursing home room, $129,575/year for a private room, and roughly $80,080/year for full-time home health aide care, per CareScout's 2025 Cost of Care Survey. QDoes Medicare pay for long-term care? AOnly a narrow slice of it. Medicare covers skilled nursing facility care for up to 100 days per benefit period after a qualifying hospital stay, with a $217/day coinsurance charge for days 21-100 (2026) and no coverage after day 100. It doesn't cover ongoing custodial care or assisted living at all. QHow do I qualify for Medicaid to cover nursing home care? AYou generally need to spend down your countable assets to your state's limit - often as low as $2,000, though some states are much higher (California's is $130,000 as of 2026). Medicaid also reviews the prior 60 months of financial records for asset transfers made below fair market value. QIs long-term care insurance still worth buying? AIt depends on your health, age, and finances. Traditional standalone policies have become harder to find as insurers exited the market, and most new policies sold today are hybrid life-insurance/long-term-care products, which guarantee a payout either way. Premiums rise quickly with age, so it's generally a 'buy before you need it' decision. QWhy are long-term care costs rising faster than inflation? ARising labor costs for caregivers, ongoing staffing shortages in the care industry, and increasing demand from an aging population are the main drivers. Assisted living costs alone rose 44% over the past five years - nearly double the overall inflation rate. QHow is long-term care affecting inheritances? AA recent Washington Post analysis found more than 10% of seniors studied died with no money left, largely due to elder-care costs. With $68-84 trillion in wealth expected to transfer from baby boomers to heirs over the next two decades, rising care costs are a growing factor in how much of that actually gets passed down. QAre long-term care insurance premiums tax-deductible? APremiums for a qualifying policy count as a medical expense, deductible to the extent that they and your other unreimbursed medical expenses exceed 7.5% of your adjusted gross income. **Categories:** Insurance **Tags:** health care, health insurance, long-term care, retirement --- ### [Where Do Your Federal Tax Dollars Go? A 2026 Breakdown (Plus What's Coming in 2027)](https://savingtoinvest.com/where-does-your-federal-tax-dollar-go/) **Published:** July 26, 2026 **Author:** Andy **Content:** ### Key Takeaways - FY2026 federal spending totals about $7.4 trillion (23.3% of GDP) against $5.6 trillion in revenue (17.5% of GDP) - a $1.9 trillion gap covered by borrowing, per the Congressional Budget Office (CBO). - Social Security is the single largest category at roughly 22% of the budget, followed by Medicare (~16%); defense, net interest, and Medicaid/other health programs are roughly tied around 14% each. - Net interest on the national debt has grown into one of the three largest line items - on par with defense spending - and is the fastest-growing part of the budget. - Mandatory spending (Social Security, Medicare, Medicaid, interest) makes up about 65% of the budget; the remaining 35% is discretionary spending Congress sets fresh every year, including defense. - 'Economic security' programs - SNAP, the EITC, Child Tax Credit, unemployment insurance, SSI - together account for roughly 9% of spending, a fraction of what Social Security and Medicare cost. - Looking ahead to 2027: interest costs and health/retirement spending are projected to keep growing faster than the rest of the budget, continuing to squeeze the discretionary share that funds everything else. For every dollar the federal government spent in fiscal year 2026, about 22 cents went to Social Security and 16 cents went to Medicare. That’s before a single cent goes to defense, interest on the debt, or anything else. Total federal spending in FY2026 runs about $7.4 trillion — 23.3% of the entire U.S. economy — against $5.6 trillion in revenue, according to the [Congressional Budget Office](https://www.cbo.gov/publication/61882)‘s latest Budget and Economic Outlook. That $1.9 trillion gap gets covered by borrowing. Here’s where the money actually goes, broken down by category, using the same functional classifications the CBO and the [Center on Budget and Policy Priorities](https://www.cbpp.org/research/federal-budget/where-do-our-federal-tax-dollars-go) use in their own annual breakdowns. Covered in this Article: [Toggle](#) - [The Big Three: Social Security, Medicare, and Defense](#The_Big_Three_Social_Security_Medicare_and_Defense) - [Net Interest: The Line Item Nobody Budgeted For](#Net_Interest_The_Line_Item_Nobody_Budgeted_For) - [Where the Rest Goes: Medicaid, Veterans, and Economic Security Programs](#Where_the_Rest_Goes_Medicaid_Veterans_and_Economic_Security_Programs) - [Mandatory vs. Discretionary: Why Congress Can’t Just “Cut the Budget”](#Mandatory_vs_Discretionary_Why_Congress_Cant_Just_%E2%80%9CCut_the_Budget%E2%80%9D) - [Worked Examples: What This Looks Like for a Real Tax Bill](#Worked_Examples_What_This_Looks_Like_for_a_Real_Tax_Bill) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) ## The Big Three: Social Security, Medicare, and Defense **Social Security (~22%)** is the largest single line item. It funds monthly retirement benefits along with survivor and disability benefits — see my [Social Security COLA guide](https://savingtoinvest.com/social-security-tax-and-cost-of-living-adjustment-cola/) for how the annual cost-of-living increase gets calculated. **Medicare (~16%)** covers health insurance for people 65 and older and many people with disabilities. Combined with Medicaid and other health programs, health insurance spending is actually the single largest functional category overall once you add it all together. **Defense (~14%)** covers the Defense Department’s operations, personnel, procurement, and research — this is discretionary spending, meaning Congress sets the amount fresh each year rather than it being locked in by existing law. ## Net Interest: The Line Item Nobody Budgeted For Interest on the national debt has quietly become one of the three biggest categories in the entire federal budget, at roughly 14% — essentially tied with defense spending. It didn’t get spent on anything new; it’s simply the cost of servicing debt the government has already accumulated. This is also the fastest-growing part of the budget. Both the total amount of debt and the interest rate paid on it have risen, and neither of those is a lever Congress can quickly pull the way it can with a program’s funding level. ## Where the Rest Goes: Medicaid, Veterans, and Economic Security Programs **Medicaid and other health programs (~14%)** — Medicaid, CHIP, and ACA marketplace subsidies together make up the rest of the health insurance category alongside Medicare. **Veterans’ benefits and federal retirees (~6%)** covers disability payments, medical care, and pensions for veterans and retired federal employees, both civilian and military. **Economic security programs (~9%)** is where the safety-net programs most people think of live: the refundable parts of the [Earned Income Tax Credit](https://savingtoinvest.com/earned-income-tax-credit-eitc-qualification-and-income-threshold-limits/) and [Child Tax Credit](https://savingtoinvest.com/child-and-kiddie-tax-credit-and-income-thresholds/), unemployment insurance, Supplemental Security Income, and [SNAP](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). All of these combined still cost less than a third of what Social Security alone costs. **Everything else (~5%)** covers education, transportation and infrastructure, scientific research, law enforcement, and international affairs (including foreign aid) — combined. International affairs alone is under 1% of the total budget, despite surveys consistently finding that people estimate it at 20-30%. ## Mandatory vs. Discretionary: Why Congress Can’t Just “Cut the Budget” About 65% of federal spending is mandatory — Social Security, Medicare, Medicaid, and interest payments are set by existing law and grow automatically as eligibility and costs change, without a new vote from Congress each year. The remaining 35% is discretionary spending, decided fresh in the annual appropriations process. Defense is by far the largest piece of that discretionary total, which is why “just cut spending” is a much smaller lever than it sounds — most of the largest categories aren’t up for an annual vote at all. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) — I’ll update these figures as new CBO and OMB estimates come out.* ## Worked Examples: What This Looks Like for a Real Tax Bill These examples apply the overall federal spending percentages above to an individual’s total federal tax bill (income tax plus their share of payroll tax) — it’s an illustrative allocation, not a literal trace of specific dollars, since Social Security and Medicare are actually funded through a dedicated payroll tax separate from the income tax most people file every April. Still, it’s the clearest way to see the scale. **Mark** owes $12,000 in total federal tax this year. Applying the categories above: about $2,640 goes toward Social Security, $1,920 toward Medicare, $1,680 toward defense, $1,680 toward net interest, $1,680 toward Medicaid and other health programs, $1,080 toward economic security programs, $720 toward veterans’ and federal retiree benefits, and the remaining $600 toward everything else combined. **Sarah** owes $4,500 in total federal tax. The same breakdown scales down proportionally: about $990 to Social Security, $720 to Medicare, $630 each to defense, net interest, and Medicaid/health programs, $405 to economic security programs, $270 to veterans’ benefits, and $225 to everything else. ## Common Issues to Watch Out For **Assuming foreign aid is a huge chunk of the budget.** It’s a persistent myth — international affairs spending, including humanitarian aid, is under 1% of the total. Polls have shown people guessing 20% or more. **Confusing “my income tax” with “all federal revenue.”** Social Security and Medicare are funded mainly through payroll (FICA) taxes, not the [income tax](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/) you file every April. The spending breakdown here reflects total federal outlays funded by all revenue sources combined, plus borrowing. If you’re curious how your own income tax bill and [refund](https://savingtoinvest.com/average-irs-and-state-tax-refund-and-processing-times/) fit into this bigger picture, that’s a separate calculation from the spending side covered here. **Thinking discretionary cuts can meaningfully shrink the deficit.** Non-defense discretionary spending — the part of the budget that funds things like education and infrastructure — is a relatively small slice next to Social Security, Medicare, and interest, all of which are much harder to change quickly. **Assuming the numbers are static year to year.** The mix shifts as populations age into Medicare and Social Security, as interest rates change, and as Congress adjusts program rules — this is worth revisiting annually, not treating as a fixed pie chart. ## Looking Ahead: 2027 Outlook Health and retirement spending, along with interest on the debt, are projected to keep growing faster than the rest of the budget — the [Committee for a Responsible Federal Budget has estimated](https://www.crfb.org/blogs/90-spending-growth-will-come-health-retirement-veterans-interest) that these categories alone will drive the large majority of total spending growth over the next decade, continuing to squeeze the discretionary share that funds everything else. A few specific things I’m watching heading into 2027: the annual Social Security COLA announcement each October, whether interest costs keep climbing as more debt gets refinanced at current rates, and how the expiration of enhanced ACA marketplace premium tax credits at the end of 2025 works through the health-spending numbers over the coming year. I’ll update this breakdown once FY2027 estimates are finalized. Frequently Asked Questions QHow much does the federal government spend in total? AAbout $7.4 trillion in FY2026 (23.3% of GDP), against $5.6 trillion in revenue (17.5% of GDP) - a $1.9 trillion deficit, according to the CBO's Budget and Economic Outlook. QWhat's the single biggest thing my tax dollars fund? ASocial Security, at roughly 22% of total federal spending, followed by Medicare at about 16%. QDoes a lot of my tax money go to foreign aid? ANo. International affairs spending, including humanitarian aid and embassy operations, is under 1% of the federal budget - despite public surveys consistently overestimating it at 20% or more. QIs Social Security funded by the income tax I file every April? ANot directly. Social Security and Medicare are primarily funded by payroll (FICA) taxes, a separate tax from the income tax return most people file. This breakdown reflects total federal spending funded by all revenue sources combined, not income tax alone. QWhat's the difference between 'mandatory' and 'discretionary' spending? AMandatory spending - Social Security, Medicare, Medicaid, and interest - is set by existing law and grows automatically without a new vote each year. Discretionary spending, including defense, is set fresh annually through the appropriations process. Mandatory spending is about 65% of the total budget. QWhy does interest on the debt keep growing? ABecause both the total amount of accumulated debt and the interest rate paid on it have risen. Net interest is now one of the three largest budget categories and the fastest-growing. QWhere can I check these numbers myself? AThe Congressional Budget Office publishes its full 'Budget and Economic Outlook' annually with detailed spending data, and the Center on Budget and Policy Priorities publishes a plain-language annual breakdown of exactly where federal tax dollars go. **Categories:** Taxes and Retirement --- ### [Property Tax Rebates by State in 2026 and 2027: What PA, NJ, TX, GA, and FL Homeowners Can Actually Get](https://savingtoinvest.com/property-tax-rebates-by-state-2026/) **Published:** August 22, 2026 **Author:** Andy **Content:** ### Key Takeaways - There's no federal property tax rebate - every program here is run entirely by the state, with its own rules, deadlines, and dollar amounts. - Pennsylvania (PA)'s Property Tax/Rent Rebate pays up to $1,000, with the application deadline extended to December 31, 2026. - New Jersey (NJ)'s ANCHOR program pays homeowners $1,000-$1,750 and renters $450-$700 depending on age and income; payments start September 15, 2026. - Texas (TX) raised its school-district homestead exemption from $100,000 to $140,000, with seniors and disabled homeowners getting an extra $60,000 on top. - Georgia (GA) is sending a one-time property tax relief grant averaging about $500 per household through its Amended FY2026 budget. - Florida (FL)'s much-discussed $1,000 flat rebate was rejected by state lawmakers - instead, voters decide on a bigger homestead exemption expansion on the November 2026 ballot. If you’re waiting on a property tax break in 2026, the size and shape of it depends entirely on your state — there’s no federal program here. Five states have made real news this year: Pennsylvania, New Jersey, Texas, Georgia, and Florida, and each one works completely differently. Here’s what’s actually happening in each, since a few widely-shared headlines (especially Florida’s) don’t match where things actually landed. Covered in this Article: [Toggle](#) - [Pennsylvania (PA): Up to $1,000, Deadline Extended to December 31](#Pennsylvania_PA_Up_to_1000_Deadline_Extended_to_December_31) - [New Jersey (NJ): ANCHOR Pays $450 to $1,750, Starting September 15](#New_Jersey_NJ_ANCHOR_Pays_450_to_1750_Starting_September_15) - [Texas (TX): School Homestead Exemption Jumps to $140,000](#Texas_TX_School_Homestead_Exemption_Jumps_to_140000) - [Georgia (GA): A One-Time $500 Property Tax Relief Grant](#Georgia_GA_A_One-Time_500_Property_Tax_Relief_Grant) - [Florida (FL): The $1,000 Rebate Didn’t Happen — Here’s What Did](#Florida_FL_The_1000_Rebate_Didnt_Happen_%E2%80%94_Heres_What_Did) - [Why This Matters More Than Usual Right Now](#Why_This_Matters_More_Than_Usual_Right_Now) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: What to Watch for the Rest of 2026](#Looking_Ahead_What_to_Watch_for_the_Rest_of_2026) ## Pennsylvania (PA): Up to $1,000, Deadline Extended to December 31 Pennsylvania’s long-running Property Tax/Rent Rebate program pays homeowners and renters age 65+, widows and widowers 50+, and people with disabilities 18+ a rebate ranging from $380 to $1,000, scaled to income. The 2026 income limit is $48,110. The state extended its application deadline to December 31, 2026, and reports that roughly 376,000 Pennsylvanians have already received a combined $226 million this cycle. If you think you qualify and haven’t applied, there’s still time — full details are on [PA’s Department of Revenue site](https://www.pa.gov/agencies/revenue/newsroom/shapiro-administration-extends-deadline-for-property-tax-rent-rebate-program-to-december-31,-2026,-allowing-more-time-for-pennsylvanians-to-apply-for-tax-relief). ## New Jersey (NJ): ANCHOR Pays $450 to $1,750, Starting September 15 New Jersey’s ANCHOR program remains one of the largest in the country. For 2026, homeowners with income up to $150,000 get $1,500 ($1,750 if 65+), and those between $150,000–$250,000 get $1,000 ($1,250 if 65+). Renters get $450, or $700 if 65+. Payments begin September 15, 2026 on a rolling basis, roughly 90 days after filing. The final application deadline is November 2, 2026, though September 15 is also the cutoff if you want a paper check or need to update your banking information. Full program rules are on [NJ’s Division of Taxation site](https://www.nj.gov/treasury/taxation/relief.shtml). *This page gets updated as state programs change — [subscribe here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) if you want a heads-up when new state rebates get announced.* ## Texas (TX): School Homestead Exemption Jumps to $140,000 Texas doesn’t send a rebate check — it raises the amount of your home’s value that’s exempt from school district property taxes. Voters approved Proposition 13 in November 2025, lifting that exemption from $100,000 to $140,000 for the 2026 tax year. Seniors 65+ and homeowners with a qualifying disability get an additional $60,000 exemption on top of the standard amount, bringing their total to $200,000 (the two extra exemptions don’t stack with each other — it’s one or the other). The filing deadline for a new homestead exemption is April 30, 2026, though once approved, the exemption generally carries forward automatically in future years without refiling. ## Georgia (GA): A One-Time $500 Property Tax Relief Grant Georgia is repeating a version of its 2023 program: a one-time property tax relief grant funded through the state’s Amended FY2026 budget, at a cost of roughly $850 million statewide. The state estimates it will reduce the average homesteaded property tax bill by about $500. This is separate from — and shouldn’t be confused with — Georgia’s separate one-time income tax rebate (up to $500 for joint filers) signed into law in March 2026, which is a different program tied to income tax returns rather than property tax bills. Georgia lawmakers are also weighing a much larger, separate proposal — a constitutional amendment that would phase in eliminating homestead property taxes entirely by 2032 — but that measure didn’t pass this session and would need to clear a statewide ballot vote before taking effect. ## Florida (FL): The $1,000 Rebate Didn’t Happen — Here’s What Did This is the one where the headlines get ahead of reality. Governor DeSantis proposed a flat $1,000 rebate for every homesteaded property in late 2025, but state lawmakers didn’t pass it. If you’ve seen that figure floating around, it’s a proposal that didn’t become law. What actually passed is different and bigger in scope, but not yet in effect. In June 2026, the Florida Legislature passed a joint resolution (HJR 1) putting a constitutional amendment on the November 3, 2026 ballot. If voters approve it, the *non-school* homestead exemption would rise from $50,000 to $150,000 in 2027, then to $250,000 in 2028, with inflation adjustments after that. It would not apply to school district taxes. As of this writing, a legal challenge over the ballot summary’s wording is scheduled for a July 29, 2026 hearing, though even a loss for the state wouldn’t remove the measure from the ballot — only require different wording. Bottom line for Florida homeowners: nothing changes your 2026 tax bill. The real decision point is the November 2026 election. ## Why This Matters More Than Usual Right Now Property tax bills have been climbing in most states as home values rose over the past few years — a trend I cover in more general terms in my [look at what’s driving home prices](https://savingtoinvest.com/why-rising-rates-will-boost-rather-than-lower-home-prices-and-purchases/). That’s part of why so many states are acting on property tax relief simultaneously this year: rising assessments are pushing bills up even when local tax rates stay flat. If you’re comparing overall homeownership costs, property tax relief is only one piece — my breakdown of [rising home insurance costs](https://savingtoinvest.com/what-you-can-do-about-the-rising-cost-of-home-insurance/) covers another expense moving in the same direction in many of these same states. And if a lower monthly payment matters more to you than a rebate, it’s worth checking whether [refinancing your mortgage](https://savingtoinvest.com/should-i-refinance-my-mortgage-and-do-i-qualify/) makes sense at current rates. ## Common Issues to Watch Out For **Confusing a proposal with an actual law.** Florida’s $1,000 rebate is the clearest example this year — it got wide news coverage as if it were happening, but it never passed. **Missing the reapplication requirement.** Several of these programs, including Pennsylvania’s rebate, require you to reapply every year based on your current income — a rebate you received last year doesn’t automatically renew. **Assuming a homestead exemption is the same as a rebate check.** Texas’s program lowers your taxable home value rather than sending you money directly — the benefit shows up as a smaller tax bill, not a check in the mail. **Not knowing these are entirely separate from federal taxes.** None of these programs affect your federal return; they’re all administered at the state or local level, so my [federal tax brackets guide](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/) and these state property tax programs are unrelated systems. **Overlooking income limits.** Both Pennsylvania’s and New Jersey’s programs are income-scaled — a small change in your income year to year can shift which tier you fall into. ## Looking Ahead: What to Watch for the Rest of 2026 Florida and Georgia both have property tax questions heading to voters in November 2026 — Florida’s homestead exemption expansion and Georgia’s broader elimination proposal. New Jersey is also gradually shifting its senior property tax relief toward the newer Stay NJ program, which will eventually change how the ANCHOR senior add-on works. If any of these move, I’ll update this page — worth bookmarking if your state is one of the five above, or if you want to track whether a similar program shows up where you live before [year-end tax planning season](https://savingtoinvest.com/15-year-end-tax-deductions-to-remember-unless-you-want-to-give-the-irs-a-tax-free-loan/). Frequently Asked Questions QIs there a federal property tax rebate in 2026? ANo. Property tax rebates and relief programs are run entirely at the state level. The programs covered here - in Pennsylvania, New Jersey, Texas, Georgia, and Florida - have nothing to do with federal taxes or the IRS. QHow much is Pennsylvania's property tax rebate in 2026? AUp to $1,000, scaled by income, for homeowners and renters 65+, widows/widowers 50+, or people with disabilities 18+. The 2026 income limit is $48,110, and the application deadline was extended to December 31, 2026. QWhen do NJ ANCHOR payments start in 2026? APayments begin September 15, 2026 on a rolling basis, about 90 days after you file. The final application deadline is November 2, 2026. QDid Texas actually raise its homestead exemption? AYes. Voters approved Proposition 13 in November 2025, raising the school-district homestead exemption from $100,000 to $140,000 starting with the 2026 tax year, with an added $60,000 for seniors or disabled homeowners. QIs Florida really sending homeowners a $1,000 rebate? ANo. That proposal from Governor DeSantis did not pass the legislature. What did pass is a ballot measure (on the November 2026 ballot) that would gradually raise Florida's non-school homestead exemption if voters approve it - nothing changes automatically in 2026. QWhat is Georgia's $500 property tax relief grant? AA one-time property tax relief grant funded through Georgia's Amended FY2026 budget, expected to reduce the average homesteaded property tax bill by about $500. It's separate from Georgia's one-time income tax rebate signed in March 2026. QDo I need to reapply for these programs every year? AIt depends on the program. Pennsylvania's rebate requires annual reapplication based on income. Texas's homestead exemption generally carries forward automatically once approved. Check your specific state's rules before assuming either way. **Categories:** Taxes and Retirement --- ### [Your Direct Express Card Is Changing Banks through 2026 and 2027: What SSA, SSI, and VA Recipients Need to Know](https://savingtoinvest.com/direct-express-card-fifth-third-transition-2026/) **Published:** July 26, 2026 **Author:** Andy **Content:** ### Key Takeaways - The Direct Express prepaid debit card program - used by about 3.6 million people to receive Social Security, SSI, and VA benefits - is switching financial agents from Comerica Bank to Fifth Third Bank. - New Direct Express enrollments have used Fifth Third Bank since May 2026; the transition for existing cardholders started in summer 2026 and is rolling out in phases through early 2027. - Your benefit amount, payment date, and schedule do not change because of this transition - only which bank operates the card behind the scenes. - Keep using your current Comerica-issued card until you're specifically notified and mailed a new Fifth Third card - don't stop using it early. - If you get a letter, text, or call asking you to 'verify' your card or bank details for this switch, treat it as a probable scam - the real transition mails a physical card, it doesn't call or text asking for your information. - Keeping your mailing address and contact information current with SSA is the single most important thing to do so you actually receive your new card and any related notices. If you receive Social Security, SSI, or VA benefits on a Direct Express prepaid debit card, you may get a letter or a new card in the mail this year from a bank you’ve never heard of before: Fifth Third Bank. This is real, not a scam — but it’s exactly the kind of unfamiliar mail that scammers also love to imitate, so it’s worth knowing what’s actually happening. Covered in this Article: [Toggle](#) - [What’s Actually Changing](#Whats_Actually_Changing) - [The Timeline](#The_Timeline) - [What Doesn’t Change](#What_Doesnt_Change) - [Is This a Scam? How to Tell the Difference](#Is_This_a_Scam_How_to_Tell_the_Difference) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead](#Looking_Ahead) ## What’s Actually Changing Direct Express is the federal government’s prepaid debit card program for people who receive Social Security, [Supplemental Security Income (SSI)](https://savingtoinvest.com/ssi-maximum-payment-amounts/), or Veterans Affairs benefits electronically but don’t have (or don’t want to use) a traditional bank account. About 3.6 million people currently rely on it. The U.S. Department of the Treasury’s Bureau of the Fiscal Service [selected Fifth Third Bank](https://www.ssa.gov/news/en/advocates/2026-05-18.html) as the new financial agent for the program, replacing Comerica Bank, which had run it for years. Fifth Third’s designation was originally announced in [September 2025](https://www.businesswire.com/news/home/20250909552364/en/Fifth-Third-to-Manage-Direct-Express-Federal-Benefits-Program), and this is an administrative and operational change — a new bank now handles the program’s back-end infrastructure — not a change to the program itself, who’s eligible, or how it works day to day. ## The Timeline According to SSA’s own announcement, new Direct Express enrollments began using Fifth Third Bank in May 2026. The transition for existing cardholders started in summer 2026, and is happening in phases rather than all at once — SSA and Fifth Third expect the full changeover to continue into early 2027. If you already have a Direct Express card, you’ll receive advance notice by mail before anything changes for your account, followed by a new physical card from Fifth Third Bank. Keep using your current Comerica-issued card exactly as normal until that new card arrives and you’re told to switch. *Subscribe for updates — [get notified here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) as more of the rollout details become clear.* ## What Doesn’t Change This is worth repeating because it’s the most common source of anxiety: your benefit amount, your payment date, and your monthly payment schedule are not affected by this switch. Whether you get Social Security retirement, [SSDI](https://savingtoinvest.com/ssdi-back-pay-how-it-works/), SSI, [survivor benefits](https://savingtoinvest.com/social-security-survivor-benefits/), or VA benefits, the amount and timing follow the same rules as always — see my [Social Security payment schedule by birth date](https://savingtoinvest.com/social-security-payment-schedule-by-birth-date/) guide if you want to double-check your usual deposit date. This transition only changes which bank sits behind the card that receives those payments. If you also get [SNAP benefits](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/) on a separate EBT card, that program is unaffected too — it’s a different card and a different agency entirely. ## Is This a Scam? How to Tell the Difference Because the transition involves an unfamiliar bank name landing in your mailbox out of nowhere, it’s a near-perfect setup for scammers to exploit. Here’s how to tell the real transition apart from a scam attempt: **The real transition:** mails you a physical notice, then later a physical card, from Fifth Third Bank, using the contact information SSA has on file for you. It never asks you to call a number, click a link, or provide your card number, PIN, Social Security number, or bank details to “verify” or “activate” anything ahead of time. **A likely scam:** contacts you by phone, text, or email claiming to be about the “Direct Express switch” and asks you to confirm your card number, PIN, date of birth, or Social Security number, or asks you to click a link to “keep your benefits from being interrupted.” Legitimate transition communications don’t work this way. If you’re ever unsure whether a piece of mail, a call, or a text about Direct Express is real, don’t respond to it directly. Instead, contact Direct Express through the official customer service number printed on the back of your current card, or through SSA directly, to confirm. ## Common Issues to Watch Out For **Throwing away or ignoring mail because it looks unfamiliar.** A Fifth Third Bank envelope showing up when you’ve never banked with them before can look like junk mail or a scam at first glance — don’t discard anything related to Direct Express without reading it first. **Using an old address SSA doesn’t have.** If you’ve moved and haven’t updated your address with SSA, your new card or transition notice may never reach you, leaving you without access to your benefits when your old card is deactivated. **Assuming the switch means your benefits stopped.** Some early cardholders in prior federal financial-agent transitions have panicked and called SSA assuming a bank change means their benefits were cut off. It doesn’t — your payment continues on the same schedule regardless of which bank operates the card. **Giving out card or personal information to an unsolicited caller.** No legitimate part of this transition requires you to proactively provide your card number, PIN, or Social Security number over the phone or by text. **Discarding the old card too early.** Keep using your current Comerica-issued card until you’ve received and activated the new Fifth Third card — don’t assume the switch happened until you have the new card in hand. ## Looking Ahead The transition is expected to continue in phases through early 2027, so if you haven’t received any notice yet, that likely just means your account hasn’t been moved over yet — not that anything went wrong. I’ll update this page as SSA and Direct Express release more specific timing for different groups of cardholders. Frequently Asked Questions QIs the Direct Express switch to Fifth Third Bank real? AYes. The U.S. Department of the Treasury's Bureau of the Fiscal Service selected Fifth Third Bank as the new financial agent for the Direct Express program, replacing Comerica Bank, according to SSA's official announcement. QWill my Social Security, SSI, or VA payment amount change because of this? ANo. This is purely an operational change in which bank runs the card program behind the scenes. Your benefit amount, payment date, and schedule are unaffected. QWhen do I need to switch to a new Direct Express card? AOnly when you receive a new physical card from Fifth Third Bank in the mail, following an advance notice. Keep using your current Comerica-issued card until then - the transition is rolling out in phases through early 2027. QHow many people use Direct Express? AAbout 3.6 million people currently receive Social Security, SSI, or VA benefits via a Direct Express prepaid debit card. QHow can I tell if a call or text about Direct Express is a scam? AThe real transition never asks you to provide your card number, PIN, or Social Security number by phone, text, or email, or to click a link to 'verify' your account. If you get such a request, don't respond - instead call the number on the back of your current card or contact SSA directly. QWhat should I do to make sure I get my new card? AKeep your mailing address and contact information up to date with SSA. That's the single most important step to ensure you actually receive the transition notice and new card when your account is moved over. **Categories:** Taxes and Retirement --- ### [What Happens if I File My Taxes Late? 2026 IRS Penalties and Getting Your Refund](https://savingtoinvest.com/what-happens-if-i-file-my-taxes-late-irs-penalty-and-getting-your-refund/) **Published:** April 22, 2022 **Author:** Andy **Content:** ### Key Takeaways - Missing the April 15, 2026 deadline without an extension triggers a failure-to-file penalty of 5% of unpaid taxes per month, up to 25%. - If you're more than 60 days late, the minimum penalty is $525 (or 100% of what you owe, whichever is less). - Filing late when you're owed a refund has no penalty - but you still need to file within 3 years to claim the money. - If you can't pay your full tax bill, still file on time - the failure-to-file penalty is much steeper than the failure-to-pay penalty. - New for 2026: the IRS's Automatic Exemption from Penalty (AEP) now waives eligible penalties automatically for taxpayers with a clean 3-year filing/payment history - no request needed, replacing the old First-Time Abate program. I get a few comments every tax season from readers asking whether it’s too late to file a return after the regular [deadline](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) (April 15, 2026 for most people) — and what happens if they forgot to [file for an extension](https://savingtoinvest.com/should-you-file-a-tax-return-or-file-a-tax-extension/). I also get asked what happens if they owe taxes, or if they find they might be due a refund. The important thing to remember is that you should take action in either scenario — to minimize IRS penalties or interest, and to make sure you get any money that’s owed to you. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates.* Covered in this Article: [Toggle](#) - [2026 IRS Late Filing Penalties: What You Need to Know](#2026_IRS_Late_Filing_Penalties_What_You_Need_to_Know) - [If You Owe Taxes and Missed the April 15 Deadline](#If_You_Owe_Taxes_and_Missed_the_April_15_Deadline) - [Can I Get Penalty Relief? (Updated: It’s Now Automatic for Many Filers)](#Can_I_Get_Penalty_Relief_Updated_Its_Now_Automatic_for_Many_Filers) - [What If I Didn’t File But Might Be Owed a Refund?](#What_If_I_Didnt_File_But_Might_Be_Owed_a_Refund) ## 2026 IRS Late Filing Penalties: What You Need to Know There are two main types of IRS tax penalties here. One is the **Failure-to-File** penalty. The other is the **Failure-to-Pay** penalty. The IRS treats failing to file as more serious than not paying your full balance. That’s why the failure-to-file penalty starts out much higher than the failure-to-pay penalty. This is also why filing on time matters even if you can’t pay. If you can’t cover the full amount, you can set up an IRS payment plan without triggering additional penalties. The IRS has historically focused enforcement on higher earners (over $100,000/year) who don’t file — but the penalties apply regardless of income. ### If You Owe Taxes and Missed the April 15 Deadline If you have a tax liability with the IRS and missed the April 15, 2026 filing (or extension) deadline, here’s what you face: **Failure-to-file penalty:** - 5% of your unpaid taxes for each month (or partial month) you’re late, up to 5 months — maximum 25% of unpaid taxes. - If you file more than 60 days late, the minimum failure-to-file penalty is **$525** or 100% of your unpaid taxes, whichever is less. Here’s the minimum penalty by tax return year: Tax Return YearIRS Minimum Penalty2026$5252025$5102024$4852023$450 **Failure-to-pay penalty:** Late tax liability payments also incur an additional **0.5% per month** of unpaid taxes until fully paid or until 25% of the outstanding amount is reached. If you’re on an IRS installment plan and filed on time, this rate drops to 0.25% per month. On top of penalties, the IRS charges **interest** on any unpaid balance. In 2026, the rate has been 7% for individuals (federal short-term rate plus 3%) in Q1 and Q3, with a brief drop to 6% in Q2. Interest compounds daily, so it adds up fast on large balances. **Fraudulent returns** face the steepest consequences — the monthly penalty jumps from 5% to 15%, with the maximum rising from 25% to 75%. Here’s a simple example of how these apply together: Mark files his return 45 days late without an extension. He owes $4,000. His failure-to-file penalty: 1.5 months × 5% × $4,000 = **$300**. His failure-to-pay penalty: 0.5% × $4,000 = **$20**. Total penalty: **$320** — before interest compounds on top. The takeaway: make an estimated payment of what you think you owe even if you’re not ready to file. A partial payment reduces the penalty base. For the full breakdown, see the [Penalties](https://www.irs.gov/payments/penalties) and [Failure to File Penalty](https://www.irs.gov/payments/failure-to-file-penalty) pages on IRS.gov. Things can shift — interest rates adjust quarterly, and I’ll update this page as the AEP rollout progresses through the rest of 2026. ### Can I Get Penalty Relief? (Updated: It’s Now Automatic for Many Filers) For years, the way to get a first-time penalty removed was to call the IRS, submit a written request, or ask when responding to a notice — the “first-time penalty abatement” (FTA) process. That’s changing in 2026. On July 8, 2026, the IRS introduced the **Automatic Exemption from Penalty (AEP)**, which is replacing FTA. If you have a clean filing and payment history for the prior 3 years (12 consecutive quarters for quarterly filers), the IRS now applies penalty relief automatically during processing — covering failure-to-file, failure-to-pay, and failure-to-deposit penalties — and mails you a notice confirming it. You don’t need to call or request anything. AEP applies to returns starting with tax year 2025 and 2026 quarterly returns. FTA is being phased out over the summer of 2026 and fully hands off to AEP for returns due on or after January 1, 2027 — so during this transition, you may still see a penalty notice before AEP catches up, and can request FTA the old way in the meantime if that happens. If you don’t qualify for either (for example, you had a late filing more recently than 3 years ago), you can still request relief under the IRS’s “reasonable cause” process. ### What If I Didn’t File But Might Be Owed a Refund? Some people don’t file because they didn’t earn much — or just haven’t gotten around to it for a few years. But credits like the [Earned Income Tax Credit (EITC)](https://savingtoinvest.com/what-is-the-earned-income-tax-credit-eitc-and-do-i-qualify/) can put real money back in your pocket, and you don’t always need a high income to qualify. **Lower-income earners can benefit the most from filing** — for some households, the total refund can exceed $10,000 when credits stack up. And filing is free for most people: for 2026, anyone with an AGI of **$89,000 or less** can e-file for free through [IRS Free File](https://savingtoinvest.com/the-best-tax-software-and-free-filing-options-as-tax-filing-goes-primarily-online/) or major tax software providers. If you owe nothing to the IRS (or other federal agencies), filing late has **no penalty at all**. You just need to file within 3 years of the original due date to claim your refund — after that, the money goes to the U.S. Treasury. If you haven’t filed your **2023 tax return**, your 3-year window runs until April 2027 to claim any refund owed. For 2024 returns, you have until April 2028. The 2022 window closed April 15, 2026 — so those refunds are gone if you missed that deadline. You can e-file with the IRS through mid-November before they close systems for the season. Returns open back up in January for both current and prior-year filings. Finally: the above is all about your **federal** return. Make sure you also [file your state tax return](https://savingtoinvest.com/when-can-i-file-and-check-my-state-tax-refund/) by the required state due date — those penalties are separate and vary by state. Frequently Asked Questions QWhat is the penalty for filing my 2025 taxes late in 2026? AThe failure-to-file penalty is 5% of unpaid taxes per month, up to 25%. If you're more than 60 days late, the minimum penalty is $525 or 100% of what you owe - whichever is less. If you don't owe anything, there's no penalty for filing late. QWhat's the deadline to file my 2025 federal tax return? AThe standard deadline is April 15, 2026 for most taxpayers. If you need more time, you can file for a free extension by that date - which gives you until October 15, 2026. Note: an extension to file is not an extension to pay. Any taxes owed are still due by April 15. QWhat if I can't pay my tax bill by April 15? AFile on time anyway, even if you can't pay in full. The failure-to-file penalty (5% per month) is 10x worse than the failure-to-pay penalty (0.5% per month). Then set up an IRS payment plan to pay what you owe over time without additional filing penalties. QCan I get my IRS penalty waived? AOften automatically now. The IRS's new Automatic Exemption from Penalty (AEP), effective 2026, waives eligible penalties without you having to ask, if you have a clean filing/payment history for the prior 3 years. This replaces the older first-time penalty abatement process, which is being phased out through 2026 and still available on request during the transition. QHow long do I have to claim a tax refund if I filed late? AYou have 3 years from the original filing deadline to claim a refund. After that, the IRS keeps the money. For 2023 returns (originally due April 2024), you have until April 2027. For 2024 returns, until April 2028. The 2022 window closed April 15, 2026. QWhat is the IRS interest rate on unpaid taxes in 2026? AThe IRS charges 7% annual interest on unpaid balances for most of 2026 (Q1 and Q3), with a brief dip to 6% in Q2. Interest compounds daily and applies on top of any failure-to-pay penalty, so even small balances can grow if left unresolved. **Categories:** Taxes and Retirement --- ### [Avoid Costly Mistakes When Inheriting an IRA in 2026: The Annual RMD Rule You Can't Skip Anymore](https://savingtoinvest.com/avoid-costly-mistakes-when-inheriting-an-ira-in-2026-tax-smart-tips/) **Published:** March 19, 2026 **Author:** Andy **Content:** ### Key Takeaways - The IRS finalized new inherited-IRA regulations in July 2024, effective for 2025 and beyond - the penalty-free 'wait and see' transition period that ran from 2021 through 2024 is now over. - If the original IRA owner died on or after their required beginning date (RBD) for RMDs, most non-spouse beneficiaries must take annual RMDs in years 1 through 9 of the 10-year rule, not just empty the account by year 10. - Missing a required annual RMD now triggers a 25% excise tax on the amount you should have withdrawn - reduced to 10% if you correct it within two years. - If the original owner died before reaching their RBD (currently age 73, rising to 75 for those born 1960 or later), no annual RMDs are required - you can still wait until year 10 to empty the account. - 'Eligible designated beneficiaries' - spouses, minor children, disabled or chronically ill individuals, and beneficiaries less than 10 years younger than the deceased - are exempt from the 10-year rule entirely and can stretch distributions over their own life expectancy. - Whether you owe an annual RMD in 2026 depends entirely on two dates: when the original owner died, and how old they were when they died. If you inherited an IRA anytime after 2019, there’s a good chance you’ve been told the rule is simple: empty the account within 10 years, take distributions whenever you want in between. That’s no longer entirely true, and the IRS’s penalty-free grace period for getting it wrong ended after 2024. Here’s what actually changed, who it affects, and two worked examples showing the difference it makes. Covered in this Article: [Toggle](#) - [The Rule Most People Still Have Wrong](#The_Rule_Most_People_Still_Have_Wrong) - [The Rule That Actually Applies: It Depends on the Owner’s RBD](#The_Rule_That_Actually_Applies_It_Depends_on_the_Owners_RBD) - [Two Worked Examples](#Two_Worked_Examples) - [Who’s Exempt From All of This: Eligible Designated Beneficiaries](#Whos_Exempt_From_All_of_This_Eligible_Designated_Beneficiaries) - [Roth IRAs Work Differently](#Roth_IRAs_Work_Differently) - [Don’t Overlook Qualified Charitable Distributions](#Dont_Overlook_Qualified_Charitable_Distributions) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead](#Looking_Ahead) ## The Rule Most People Still Have Wrong The SECURE Act of 2019 ended the “stretch IRA” for most non-spouse beneficiaries, replacing it with a 10-year rule: the account must be fully distributed by December 31 of the 10th year after the original owner’s death. For years, many beneficiaries and even tax advisors treated this as flexible — take nothing for nine years, then withdraw everything in year 10, as long as the deadline is met. The IRS and Treasury Department [finalized regulations in July 2024](https://www.federalregister.gov/documents/2024/07/19/2024-14542/required-minimum-distributions), effective for the 2025 tax year forward, that confirmed this reading was only half right. ## The Rule That Actually Applies: It Depends on the Owner’s RBD The key question is whether the original IRA owner died **before** or **on/after** their required beginning date (RBD) — the date they were required to start taking their own RMDs. Under current SECURE 2.0 rules, the RBD is April 1 of the year after the owner turns 73 (for those born 1951–1959) or 75 (for those born 1960 or later). **If the owner died before their RBD:** Most designated beneficiaries can still wait until year 10 to withdraw the full balance. No annual RMDs are required — the flexible version of the rule people are used to. **If the owner died on or after their RBD:** Beneficiaries subject to the 10-year rule must also take annual RMDs in years 1 through 9, based on their own life expectancy under the IRS Single Life Expectancy table — in addition to emptying the account by year 10. This is sometimes called the “at least as rapidly” rule, since the beneficiary can’t distribute more slowly than the original owner would have. *Subscribe for updates — [get notified here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) if the IRS issues further guidance on this rule.* ## Two Worked Examples **Example 1 — Annual RMDs required.** Robert’s father passed away in early 2025 at age 78, already taking his own RMDs for several years. Robert, an adult son and non-spouse “designated beneficiary,” inherits the traditional IRA. Because his father died after his RBD, Robert must take an RMD in 2026 (year 1) based on his own age under the IRS Single Life Expectancy table, and every year after that through 2034 (year 9), before emptying whatever remains by December 31, 2035 (year 10). If Robert skips his 2026 RMD, he owes a 25% excise tax on the amount he should have withdrawn — reducible to 10% if he corrects the mistake within two years by taking the missed distribution and filing Form 5329. **Example 2 — No annual RMDs required.** Maria’s aunt passed away in 2025 at age 68 — before reaching her RBD. Maria, a niece and non-spouse designated beneficiary, inherits the traditional IRA. Because her aunt died before her RBD, Maria has no annual RMD requirement. She can leave the account untouched for years 1 through 9 and withdraw the entire balance in year 10 (by December 31, 2035) if she chooses — though spreading withdrawals across multiple years is usually still smarter for managing her own tax bracket, even without a legal requirement to do so. ## Who’s Exempt From All of This: Eligible Designated Beneficiaries A smaller group of heirs — [“eligible designated beneficiaries,” or EDBs](https://www.swiftprobate.com/blog/inherited-ira-rules-2026) — skip the 10-year rule entirely and can stretch distributions over their own life expectancy, similar to the old stretch IRA. This category includes the surviving spouse, minor children of the original owner (until they reach the age of majority, at which point the 10-year rule kicks in), disabled or chronically ill individuals as defined under IRS rules, and beneficiaries who are not more than 10 years younger than the original owner. If you fall into one of these categories, the annual-RMD rule described above doesn’t apply to you the same way — you’re already required to take RMDs every year for the rest of your life, calculated on your own life expectancy. ## Roth IRAs Work Differently If you inherited a Roth IRA rather than a traditional one, the 10-year rule still applies to non-spousal, non-EDB beneficiaries, but the annual-RMD requirement generally does not — because the original Roth owner never had RMDs during their own lifetime, there’s no “at least as rapidly” obligation to carry forward. You can still wait until year 10 to distribute the full balance, and once distributed, qualified withdrawals remain tax-free as long as the original account had been open at least five years. ## Don’t Overlook Qualified Charitable Distributions If you’re age 70½ or older and charitably inclined, a Qualified Charitable Distribution (QCD) lets you send up to $111,000 per year (2026 limit, indexed annually) directly from an inherited IRA to a qualifying charity without counting the amount as taxable income — and a QCD counts toward satisfying that year’s RMD if one is due. This can be one of the most effective tools for beneficiaries who don’t need the income and want to reduce their taxable distributions from an inherited account. It’s worth reviewing alongside your other [year-end tax moves](https://savingtoinvest.com/15-year-end-tax-deductions-to-remember-unless-you-want-to-give-the-irs-a-tax-free-loan/) if you’re managing distributions from an inherited IRA. ## Common Issues to Watch Out For **Assuming the 10-year rule is always flexible.** Whether you owe annual RMDs depends entirely on whether the original owner had reached their required beginning date — not on your own age or preferences. **Not knowing the original owner’s exact age at death relative to their RBD.** This single fact determines your entire distribution schedule. If you’re unsure, your IRA custodian’s beneficiary paperwork or the original owner’s prior tax returns should show whether they were already taking RMDs. **Skipping a required annual RMD because “the account isn’t due until year 10.”** For beneficiaries subject to the annual-RMD requirement, that assumption now costs a 25% excise tax on the missed amount. **Taking one large lump-sum distribution in year 10.** Even beneficiaries with no annual RMD requirement usually pay far less in cumulative tax by spreading withdrawals across the 10-year window rather than triggering a single high-bracket year — a point worth reviewing against the current [federal tax brackets](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/). **Confusing inherited-IRA rules with the rules for your own IRA.** The distribution requirements, RMD age, and tax treatment for an account you inherit are different from the [rules that apply to IRAs you contribute to yourself](https://savingtoinvest.com/traditional-ira-versus-roth-ira-contribution-and-phase-out-income-limits/). ## Looking Ahead The 2021–2024 transition relief is over, and the IRS has shown no sign of extending further penalty waivers, so treat the annual-RMD requirement as fully enforced going forward. If you inherited an IRA years ago and never confirmed whether you owed annual distributions, it’s worth reviewing with a tax professional now — you may be several years behind on required withdrawals, and correcting the shortfall sooner keeps you in the reduced 10% penalty window rather than the full 25%. For a broader refresher on how inherited and personal retirement accounts fit together, see my [401(k) and IRA contribution limits guide](https://savingtoinvest.com/401k-ira-and-roth-ira-contribution-and-income-limits). Frequently Asked Questions QDo I have to take an RMD every year from an inherited IRA under the 10-year rule? AOnly if the original owner died on or after their required beginning date (RBD) for RMDs. If they died before their RBD, you can wait until year 10 to withdraw everything, though the account must be fully empty by then either way. QWhat happens if I miss a required annual RMD from an inherited IRA? AYou owe a 25% excise tax on the amount you should have withdrawn. That penalty drops to 10% if you correct the shortfall - by taking the missed distribution and filing IRS Form 5329 - within two years. QWhat is the required beginning date (RBD) for RMDs? AApril 1 of the year after the account owner turns 73 (for those born 1951-1959) or 75 (for those born 1960 or later), under current SECURE 2.0 rules. QDoes the annual RMD rule apply to inherited Roth IRAs? AGenerally no. Since the original Roth owner never had RMDs during their lifetime, non-spouse beneficiaries typically don't owe annual RMDs during the 10-year window, though the account must still be emptied by year 10. QWho is exempt from the 10-year rule entirely? A'Eligible designated beneficiaries' - the surviving spouse, minor children of the original owner, disabled or chronically ill individuals, and beneficiaries not more than 10 years younger than the original owner - can stretch distributions over their own life expectancy instead. QWhen did the IRS finalize these inherited IRA rules? AThe IRS and Treasury released final regulations in July 2024, effective for the 2025 tax year onward. Penalty relief that had applied from 2021 through 2024 while the rules were being clarified has ended. QCan I use my inherited IRA for charitable giving to reduce taxes? AYes, if you're 70½ or older. A Qualified Charitable Distribution lets you send up to $111,000 per year (2026 limit) directly to a qualifying charity from an inherited IRA without counting it as taxable income, and it can satisfy that year's RMD if one is due. **Categories:** Taxes and Retirement **Tags:** beneficiary IRA, inheriting an IRA, IRA RMDs, IRA tax rules, IRA withdrawal strategies --- ### [IRS Standard Mileage Rate 2026: Why It Jumped to 76 Cents Mid-Year (Plus a 2027 Outlook)](https://savingtoinvest.com/standard-mileage-rate-tax-irs/) **Published:** December 4, 2009 **Author:** Andy **Content:** ### Key Takeaways - The IRS raised the 2026 standard mileage rate mid-year, effective July 1: business use jumped from 72.5 cents to 76 cents per mile. - Medical and moving mileage rose from 20.5 cents to 23.5 cents per mile on the same date; the charitable rate stays fixed by law at 14 cents. - This is only the fifth time since 2005 the IRS has adjusted mileage rates outside its usual December announcement - it also happened in 2005, 2008, 2011, and 2022. - The trigger was gas prices: AAA's national average for regular gasoline rose from $2.819/gallon in early January to $3.890/gallon by mid-July, a 38% jump. - The new rate applies only to miles driven on or after July 1 - it isn't retroactive, so you'll use two different rates depending on when the trip happened. - Only self-employed workers and certain business owners can deduct business mileage directly; most W-2 employees still can't claim unreimbursed vehicle expenses. If you drive for work, the IRS standard mileage rate you can deduct just changed twice in one year. It started 2026 at 72.5 cents per mile for business use, then jumped to 76 cents per mile effective July 1 — a mid-year increase the IRS almost never makes. Here’s the full breakdown of both halves of the year, why the change happened, and what it means whether you’re a rideshare driver, a small business owner, or just tracking medical or charitable miles. Covered in this Article: [Toggle](#) - [2026 Mileage Rates: First Half vs. Second Half](#2026_Mileage_Rates_First_Half_vs_Second_Half) - [Why the IRS Made a Rare Mid-Year Change](#Why_the_IRS_Made_a_Rare_Mid-Year_Change) - [Who Can Actually Claim the Business Mileage Deduction](#Who_Can_Actually_Claim_the_Business_Mileage_Deduction) - [Medical, Moving, and Charitable Mileage](#Medical_Moving_and_Charitable_Mileage) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) ## 2026 Mileage Rates: First Half vs. Second Half Because of the July 1 change, 2026 effectively has two different rate schedules depending on when you drove. The original 2026 rates were set by [IRS Notice 2026-10](https://www.irs.gov/newsroom/irs-sets-2026-business-standard-mileage-rate-at-725-cents-per-mile-up-25-cents) back in December 2025, then revised for the second half of the year: PeriodBusinessMedical/MovingCharitableJan. 1 – Jun. 30, 202672.5¢/mile20.5¢/mile14¢/mileJul. 1 – Dec. 31, 202676¢/mile23.5¢/mile14¢/mile2025 (for comparison)70¢/mile21¢/mile14¢/mile The charitable mileage rate is set by statute (Internal Revenue Code Section 170(i)), not by the IRS itself, which is why it hasn’t moved in years regardless of gas prices. The business and medical/moving rates, by contrast, are based on an annual — and now mid-year — study of the actual fixed and variable costs of operating a vehicle. One important detail: this isn’t retroactive. If you drove for business in March, you use 72.5 cents for those miles even though you’re filing after July 1. Keep your mileage log split by date so you’re applying the right rate to the right trip. ## Why the IRS Made a Rare Mid-Year Change The IRS doesn’t like to move mileage rates outside its normal December announcement — doing so mid-year creates real complexity for anyone tracking deductible miles. It’s happened only four times before 2026: in 2005, 2008, 2011, and 2022, each time tied to a sharp spike in fuel costs. This time was no different. According to AAA data cited in the IRS’s own announcement, the national average price for a gallon of regular gasoline went from $2.819 on January 8 to $3.890 by mid-July — a 38% increase in about six months. The IRS revised its cost study mid-cycle rather than asking drivers to absorb rising fuel costs on the old rate through year-end. You can see the IRS’s own guidance on business vehicle use at [Tax Topic 510](https://www.irs.gov/taxtopics/tc510) on IRS.gov. The new rates apply the same way to gas, diesel, hybrid, and fully electric vehicles — the IRS doesn’t distinguish by fuel type for these purposes. *Things can shift quickly with fuel prices. I’ll update this page if the IRS makes any further adjustment before year-end — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/).* ## Who Can Actually Claim the Business Mileage Deduction This is the part that trips people up. The business standard mileage rate is mainly useful to the self-employed — rideshare and delivery drivers, freelancers, and small business owners filing a Schedule C or claiming vehicle use for an LLC or S-corp. Most W-2 employees can’t deduct unreimbursed mileage on their personal return at all. Since the 2017 tax law changes, miscellaneous itemized deductions for unreimbursed employee expenses are suspended, with narrow exceptions for certain reservists, state and local government officials, performing artists, and eligible educators. If your employer reimburses mileage, that’s handled through their own reimbursement policy, not your tax return. **Example — Maria, a rideshare driver.** Maria drives 25,000 business miles in 2026, split evenly between the two rate periods: 12,500 miles at 72.5 cents ($9,062.50) and 12,500 miles at 76 cents ($9,500). Her total mileage deduction for the year comes to $18,562.50 — about $437.50 more than if the rate had stayed flat at 72.5 cents all year. **Example — Jake, a delivery driver.** Jake logs 15,000 miles for DoorDash and Instacart deliveries, also split evenly: 7,500 miles at 72.5 cents ($5,437.50) plus 7,500 miles at 76 cents ($5,700), for a total deduction of $11,137.50. Because he’s self-employed, this comes straight off his Schedule C income before self-employment tax is calculated. If you’re weighing whether the standard mileage rate or tracking actual vehicle costs (gas, insurance, depreciation, repairs) gets you a bigger deduction, my [guide to claiming the sales tax and other costs on a car purchase](https://savingtoinvest.com/can-i-claim-the-sales-tax-on-my-new-or-used-car-purchase/) walks through when the actual-expense method can beat the standard rate, especially for a newer or more expensive vehicle. ## Medical, Moving, and Charitable Mileage The medical mileage rate (23.5 cents per mile as of July 1) covers trips to appointments, treatments, and pharmacy runs, but it only helps if your total medical expenses clear the 7.5% adjusted gross income floor — see my [full breakdown of the medical expense deduction](https://savingtoinvest.com/medical-expense-deduction-agi-limit/) for how that threshold works in practice. Moving mileage is far more limited than it used to be. It’s only deductible for active-duty members of the Armed Forces moving under permanent-change-of-station orders, and — new this year under the One Big Beautiful Bill (OBBB) — certain members of the intelligence community. If you’re a civilian relocating for a new job, this deduction doesn’t apply to you; my [tax tips for job seekers](https://savingtoinvest.com/tax-tips-if-you-are-looking-for-a-job-inlcuding-moving-education-and-job-search-expenses/) post covers what job-search and relocation costs are still deductible. Charitable mileage stays at 14 cents per mile no matter what happens to gas prices, since Congress — not the IRS — controls that rate. If you volunteer regularly and rack up miles doing it, my [guide to the charitable tax deduction](https://savingtoinvest.com/are-you-eligible-for-a-charitable-tax-deduction-worth-up-to-2000/) covers how to document and claim it alongside other charitable giving. ## Common Issues to Watch Out For **Using one rate for the whole year.** I’ve seen people just apply 76 cents to every business mile driven in 2026. That overstates your deduction for the first six months — split your log at June 30/July 1 and apply the correct rate to each half. **Assuming a W-2 job qualifies.** If you’re not self-employed and your employer doesn’t reimburse mileage, the standard deduction almost certainly makes more sense than trying to itemize unreimbursed vehicle expenses that are largely no longer deductible. **Poor mileage records.** The IRS expects a contemporaneous log — date, purpose, starting/ending odometer or total miles — not a rough estimate reconstructed at tax time. Apps that auto-track trips make this far easier than a paper notebook. **Confusing commuting with business miles.** Driving from home to your regular workplace is commuting and isn’t deductible, even for the self-employed. Miles between job sites, client visits, or supply runs are the ones that count. **Switching methods on a leased vehicle.** If you use the standard mileage rate on a leased car, you have to stick with it for the entire lease term — you can’t switch to actual expenses partway through. ## Looking Ahead: 2027 Outlook The IRS typically announces the following year’s standard mileage rates in December, based on its annual cost study. Given how sharply gas prices moved in 2026, it’s worth watching whether the 2027 starting rate reflects the higher fuel costs baked in during the second half of this year, or whether prices ease back down by then. I wouldn’t rule out another mid-year adjustment either — the 2026 change is a reminder that the IRS will act outside its normal calendar when fuel costs move enough to matter. If you want the bigger 2027 tax picture, my [2026-2027 federal tax brackets guide](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/) covers what else is shifting alongside mileage rates. I’ll update this page as soon as the official 2027 rates are announced. Frequently Asked Questions QWhat is the 2026 IRS standard mileage rate for business use? AIt's 72.5 cents per mile from January 1 through June 30, 2026, then 76 cents per mile from July 1 through December 31, 2026, following a mid-year IRS adjustment driven by rising gas prices. QWhy did the IRS raise the mileage rate in the middle of the year? AGas prices rose sharply in the first half of 2026 - AAA data shows the national average went from $2.819 to $3.890 per gallon, a 38% increase. The IRS has only made mid-year mileage adjustments four other times since 2005: in 2005, 2008, 2011, and 2022. QIs the new 76-cent rate retroactive to January 1? ANo. The higher rate only applies to miles driven on or after July 1, 2026. Miles driven earlier in the year still use the 72.5-cent rate. QCan W-2 employees deduct unreimbursed mileage on their taxes? AGenerally no. Since 2018, miscellaneous itemized deductions for unreimbursed employee expenses have been suspended, with narrow exceptions for certain reservists, state/local officials, performing artists, and eligible educators. The mileage deduction mainly benefits the self-employed. QWhat's the 2026 medical and moving mileage rate? AIt rose from 20.5 cents to 23.5 cents per mile effective July 1, 2026. Moving mileage is limited to active-duty Armed Forces members under orders and, new this year, certain intelligence community members. QHas the charitable mileage rate changed too? ANo. The charitable rate is fixed by federal statute at 14 cents per mile and hasn't changed regardless of the business and medical rate adjustments. **Categories:** Taxes and Retirement **Tags:** 2010, 2011, 2012, 2013, auto, car, charitable, IRS, mileage, standard, taxes --- ### [Medicare Extra Help 2026: Do You Qualify for Free Prescription Drug Coverage?](https://savingtoinvest.com/medicare-extra-help-part-d-low-income-subsidy/) **Published:** July 29, 2026 **Author:** Andy **Content:** ### Key Takeaways - Extra Help (the Part D Low-Income Subsidy) is a federal program that can pay your full Medicare drug plan premium, eliminate your deductible, and cap your copays at $5.10 for generics and $12.65 for brand-name drugs in 2026. - The 2026 income limit is roughly $23,475/year for an individual or $31,725/year for a married couple (150% of the federal poverty level). - The 2026 resource limit is $16,590 single / $33,100 married, but you can exclude up to $1,500 per person in burial funds, raising it to $18,090 / $36,100. - If you already receive Medicaid, SSI, or a Medicare Savings Program, you're automatically enrolled in Extra Help - no separate application needed. - Everyone else applies directly through the Social Security Administration at ssa.gov/extrahelp or by calling 1-800-772-1213. - No existing income or resource test disqualifies you permanently - you can reapply if your situation changes, and SSA reviews most recipients' eligibility annually. If you’re on Medicare and drug costs are eating into a fixed income, there’s a federal program that quietly covers a lot of that gap — and a meaningful number of people who’d qualify never apply, often because they’ve never heard of it or assume their income is too high. It’s called **Extra Help**, formally the **Part D Low-Income Subsidy (LIS)**, and depending on your income and resources, it can pay your entire drug plan premium and cut your copays to a few dollars. Here’s exactly who qualifies in 2026, what it actually covers, and how to apply. Covered in this Article: [Toggle](#) - [What Extra Help Actually Covers](#What_Extra_Help_Actually_Covers) - [2026 Income and Resource Limits](#2026_Income_and_Resource_Limits) - [Who Gets Extra Help Automatically](#Who_Gets_Extra_Help_Automatically) - [How to Apply](#How_to_Apply) - [Extra Help Also Triggers a Special Enrollment Period](#Extra_Help_Also_Triggers_a_Special_Enrollment_Period) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## What Extra Help Actually Covers Extra Help isn’t a discount card or a coupon — it’s a federal subsidy that changes what you pay across your entire Part D drug plan, at every point where you’d normally pay something: - **Your monthly premium**: Extra Help can cover your full Part D premium, up to a regional benchmark amount. If your plan costs more than the benchmark, you may owe a small difference, but many low-cost plans in each region are fully covered. - **Your annual deductible**: Eliminated entirely for full-subsidy recipients — you pay nothing before your plan’s coverage starts. - **Your copays**: Capped at **$5.10 for generic drugs** and **$12.65 for brand-name drugs** in 2026, no matter how expensive the drug’s list price actually is. - **The coverage gap**: Extra Help recipients don’t experience the coverage gap (“donut hole”) the way other Part D enrollees historically did — your copay stays capped throughout the year rather than jumping partway through. Depending on your exact income and resources, you may qualify for **full** Extra Help (the benefits above in full) or **partial** Extra Help (a reduced premium and slightly higher, but still capped, copays). SSA determines which tier applies based on where your income and resources fall within the limits. For the rest of what’s changed with Medicare drug coverage this year — including the new $2,100 out-of-pocket cap that applies whether or not you get Extra Help — see my [rundown of 2026 Medicare coverage changes](https://savingtoinvest.com/changes-to-your-2026-medicare-coverage/). ## 2026 Income and Resource Limits **Income limit**: To qualify for full Extra Help in 2026, your annual income generally needs to be at or below **150% of the federal poverty level** — roughly **$23,475 for an individual** or **$31,725 for a married couple** living together. Income counted here includes wages, Social Security, pensions, and most other regular income sources. **Resource limit**: Your countable resources need to be at or below **$16,590 for an individual** or **$33,100 for a married couple**. Countable resources include checking and savings accounts, CDs, stocks, bonds, mutual funds, and IRAs — but not your home, one vehicle, or personal belongings. **The burial fund exception**: You can exclude up to an additional **$1,500 per person** set aside for burial expenses from your countable resources, if you notify SSA about it. That raises the effective resource limit to **$18,090 single / $36,100 married** for anyone who designates funds this way. Income and resource limits that fall slightly above the full-subsidy thresholds may still qualify you for **partial** Extra Help on a sliding scale, so it’s worth applying even if you’re not certain you fall under the full limits. ## Who Gets Extra Help Automatically You don’t need to apply separately if you already have any of the following — SSA and CMS enroll you automatically: - **Full Medicaid coverage** (sometimes called “dual eligible” if you also have Medicare) - **[Supplemental Security Income (SSI)](https://savingtoinvest.com/ssi-maximum-payment-amounts/)** — the 2026 federal maximum is $994/month for an individual - **A Medicare Savings Program** (QMB, SLMB, or QI) that helps pay your Part B premium If you fall into any of these categories, you should already be receiving Extra Help without having filed a separate application. If you’re not sure whether you’re enrolled, check your Medicare account at [medicare.gov](https://www.medicare.gov/account/login) or call 1-800-MEDICARE. ## How to Apply If you don’t automatically qualify through Medicaid, SSI, or a Medicare Savings Program, you apply directly with the **Social Security Administration**, not with Medicare or a specific drug plan: 1. **Apply online** at [ssa.gov/extrahelp](https://www.ssa.gov/extrahelp/) — this is the fastest method and lets you check your application status afterward. 2. **Apply by phone** by calling SSA at 1-800-772-1213 (TTY 1-800-325-0778). 3. **Apply in person** at your local Social Security office. 4. **Get help through your State Health Insurance Assistance Program (SHIP)**, which offers free, unbiased counseling on Medicare programs including Extra Help — a useful option if you want someone to walk through the application with you. There’s no specific enrollment period for Extra Help — you can apply anytime during the year, and SSA processes applications on a rolling basis. If you’re approved, the subsidy generally applies going forward from your approval date, and SSA reviews most recipients’ continued eligibility annually. If you’re weighing Extra Help alongside a broader Social Security claiming decision — for instance, timing when you file so your income doesn’t tip you over the resource limit — my [guide to claiming Social Security in 2026](https://savingtoinvest.com/claiming-social-security-benefits-later/) walks through the tradeoffs. ## Extra Help Also Triggers a Special Enrollment Period If you’re approved for Extra Help, you also gain a **Special Enrollment Period (SEP)** that lets you switch Part D drug plans (or add one, if you have Original Medicare without drug coverage) outside of the standard annual Open Enrollment window. This is a meaningful side benefit — it means you’re not stuck with a plan that doesn’t fit your medications until the next Open Enrollment period rolls around. ## Common Issues to Watch Out For **Assuming your income is too high without checking.** The income limits are higher than many people expect, and even income slightly above the full-subsidy threshold can still qualify you for partial Extra Help. **Not knowing you’re already enrolled.** If you have Medicaid, SSI, or a Medicare Savings Program, double-check your Part D plan’s premium and copay amounts — if you’re not seeing the reduced costs Extra Help should provide, contact SSA, since something in the automatic enrollment process may not have gone through correctly. **Forgetting the burial fund exclusion.** If your resources are close to the standard limit, formally designating up to $1,500 per person for burial expenses and notifying SSA could be the difference between qualifying and not. **Assuming Extra Help covers every drug at the capped copay.** The caps apply to drugs on your plan’s formulary. If your specific medication isn’t covered by your plan at all, Extra Help doesn’t change that — you may need to request a formulary exception or switch plans during your SEP. Frequently Asked Questions QWhat is Medicare Extra Help? AExtra Help, formally the Part D Low-Income Subsidy, is a federal program that reduces or eliminates your Medicare Part D premium and deductible, and caps your prescription drug copays at $5.10 for generics and $12.65 for brand-name drugs in 2026. QWhat are the income limits for Extra Help in 2026? ATo qualify for full Extra Help, your annual income generally needs to be at or below 150% of the federal poverty level - about $23,475 for an individual or $31,725 for a married couple. Slightly higher income may still qualify you for partial Extra Help. QWhat are the resource limits for Extra Help in 2026? AThe standard resource limit is $16,590 for an individual or $33,100 for a married couple. You can exclude up to $1,500 per person in designated burial funds, raising the effective limit to $18,090 single or $36,100 married. QDo I automatically get Extra Help if I have Medicaid? AYes. If you have full Medicaid coverage, SSI, or a Medicare Savings Program (QMB, SLMB, or QI), you're automatically enrolled in Extra Help without needing to file a separate application. QHow do I apply for Extra Help? AApply directly through the Social Security Administration - online at ssa.gov/extrahelp, by phone at 1-800-772-1213, in person at a local SSA office, or with free help from your State Health Insurance Assistance Program (SHIP). QCan I switch Part D plans if I get approved for Extra Help? AYes. Approval for Extra Help triggers a Special Enrollment Period that lets you switch or add a Part D plan outside the standard annual Open Enrollment window. **Categories:** Taxes and Retirement --- ### [Used Car Inspection Checklist: How to Avoid Buying a Lemon](https://savingtoinvest.com/used-car-inspection-checklist-how-to-avoid-buying-a-lemon-in-2026/) **Published:** August 13, 2026 **Author:** Andy **Content:** ### Key Takeaways - A pre-purchase inspection (PPI) runs about $150-$250 at a shop, or $200-$400+ for a mobile mechanic who comes to you - less than 1% of the average $25,600-$30,000 used car price, against repair bills that routinely run $500-$3,500 for problems the seller didn't mention. - Run a free NICB VINCheck first (stolen/total-loss only), then a paid history report - AutoCheck runs $29.99, Carfax $44.99, and an official NMVTIS report from an approved provider is usually $9.90-$15 and covers title brands other tools miss. - NHTSA's free VIN recall lookup only checks safety recalls - it has zero title, accident, or odometer data, so don't mistake a clean recall check for a clean history. - Odometer fraud costs U.S. buyers more than $1 billion a year across an estimated 450,000+ vehicles, according to NHTSA - a rolled-back digital odometer can look completely normal on the dash. - Never skip the independent mechanic inspection, even if the seller offers you 'their guy's' clean bill of health - a seller-arranged inspection has an obvious conflict of interest. - A seller who won't allow an independent inspection or a short test drive is the single biggest red flag - walk away, no matter how good the price looks. A $150-$200 pre-purchase inspection is the cheapest insurance you’ll ever buy on a used car. Skip it, and the average undisclosed problem – a bad transmission, hidden frame damage, a flood-damaged interior – runs $500 to $3,500 to fix after the sale is final and the seller is long gone. I’ve bought and sold enough used cars over the years to have a routine I don’t deviate from, no matter how good the listing photos look or how much I like the seller. Here’s exactly what I check, in order, before any money changes hands. Covered in this Article: [Toggle](#) - [Before You Even See the Car: VIN Checks](#Before_You_Even_See_the_Car_VIN_Checks) - [What to Physically Check On the Lot](#What_to_Physically_Check_On_the_Lot) - [Get a Real Mechanic Inspection (Not the Seller’s)](#Get_a_Real_Mechanic_Inspection_Not_the_Sellers) - [Red Flags That Should Walk You Away](#Red_Flags_That_Should_Walk_You_Away) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead](#Looking_Ahead) ## Before You Even See the Car: VIN Checks Do this from your couch before you waste a Saturday driving out to see a car in person. Start with [NICB VINCheck](https://www.nicb.org/vincheck) ↗, which is free and tells you whether a vehicle is a reported total-loss or has an open theft report. It’s a good first filter, but it’s narrow – it doesn’t touch title brands, odometer readings, or accident history. For that, you need a real vehicle history report. Your three options: AutoCheck runs about $29.99 per report, Carfax runs $44.99, or you can go straight to an [NMVTIS-approved provider](https://vehiclehistory.bja.ojp.gov/nmvtis_vehiclehistory) ↗ for an official report, usually priced around $9.90 to $15. NMVTIS pulls directly from state DMV title data, which is the actual source both Carfax and AutoCheck license their branding information from. Separately, run the VIN through [NHTSA’s free recall lookup tool](https://www.nhtsa.gov/recalls) ↗. It’s genuinely useful, but it only covers open safety recalls – it has no accident, title, or mileage data at all, so a “clean” recall check tells you nothing about the car’s real history. Odometer fraud is a bigger problem than most buyers assume: NHTSA estimates it costs American buyers more than $1 billion a year across roughly 450,000 vehicles with falsified mileage. Digital odometers made rollbacks easier, not harder, since there’s no physical gear to show tampering. A history report that shows a mileage drop between two recorded readings – even a small one – is disqualifying on its own. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) and I’ll flag it if any of these tools change their pricing or coverage.* ## What to Physically Check On the Lot Bring a flashlight, a magnet, and a friend if you can. Do this in daylight – never inspect a used car after dark or in the rain, when body damage and paint mismatches are nearly impossible to spot. **Exterior:** Walk the full perimeter and sight down each body panel from the front and rear at a low angle – mismatched paint or ripples usually mean prior bodywork. A magnet won’t stick to filled body putty, which is a quick way to catch cheap repairs. **Interior and trunk:** Check under the floor mats and in the trunk spare-tire well for water staining or a musty smell – both point to flood damage, which sellers are required to disclose but often don’t. Test every window, seat adjustment, and infotainment button; a dead feature you catch now is a negotiating point, not a surprise later. **Under the hood:** Pull the oil dipstick and transmission dipstick if accessible – milky, gritty, or burnt-smelling fluid is a red flag worth walking from. Check hoses and belts for cracking, and look for fresh fluid drips on the ground under where the car’s been parked. **Tires and undercarriage:** Uneven tread wear can point to alignment or suspension problems that outlast the sale. If you can get underneath (or ask the inspecting mechanic to), look for rust-through on the frame rails, not just surface rust on brackets. **The test drive:** Drive it cold if at all possible – some transmission and engine problems only show up in the first few minutes before things warm up. Test the brakes at both low and highway speed, and take it over a rough patch of road to listen for clunks in the suspension. ## Get a Real Mechanic Inspection (Not the Seller’s) Everything above is a screening pass. The real inspection is an independent mechanic’s pre-purchase inspection (PPI), and it’s the one step I’d never skip regardless of how the car looks. A PPI typically costs $150 to $250 at a shop, or you can book a mobile mechanic who comes to the seller’s location for roughly $200 to $400 plus travel – useful when a private seller won’t drive the car anywhere. Either way, budget an hour or two; a rushed 15-minute “inspection” isn’t a real one. The mechanic should check compression, look for signs of prior frame or unibody repair with a paint-thickness gauge, scan for stored diagnostic codes even if no warning light is on, and put the car on a lift to inspect the undercarriage, suspension, and exhaust properly. That lift access is exactly what you can’t replicate standing in a driveway. If a private seller refuses to let you take the car to an independent shop or have a mobile mechanic meet you, that’s the deal ending right there – a legitimate seller has nothing to hide from an hour-long inspection. One thing I always tell people shopping the used market: this same logic applies whether you’re buying private-party or from a dealer, and it holds regardless of whether you go the [Certified Pre-Owned or non-certified route](https://savingtoinvest.com/buying-a-used-car-unnecessary-hassle-or-financially-savvy/) ↗ – CPO status buys you a warranty, not a guarantee that today’s inspection is unnecessary. ## Red Flags That Should Walk You Away A few things I’ve learned to treat as dealbreakers rather than negotiating points: **Seller won’t allow an independent inspection or a real test drive.** No exceptions here – this is the single clearest sign something’s being hidden. **Mismatched title name or an out-of-state title that just changed hands.** A title that was retitled in a different state shortly before the sale is sometimes used to “wash” a salvage or flood brand that doesn’t carry over cleanly in every state’s records. **Pressure to skip the paperwork trail.** “Cash only, no title work until later” or a rushed sale with excuses about why the title isn’t available yet. **A price that’s meaningfully below comparable listings.** If it’s 20-30% under similar cars in your area with no obvious explanation (high mileage, cosmetic damage), assume there’s a reason you haven’t found yet. **Fresh undercarriage paint or undercoating on an older car.** Sometimes it’s legitimate rust prevention – but it’s also a known way to mask frame repair or flood exposure from a casual look. ## Common Issues to Watch Out For I get questions about this process a lot, so here’s what trips people up most often. Relying only on a history report and skipping the physical inspection. A clean Carfax means nothing was *reported* – it doesn’t mean nothing happened. Plenty of accidents and repairs, especially cash transactions, never make it into any database. Getting talked into the seller’s own mechanic. Even a well-meaning seller’s regular mechanic has an incentive – conscious or not – to keep the deal moving. Always use your own, independently chosen shop. Skipping the inspection on a “too good to walk away from” deal. The deals that feel most urgent are exactly the ones worth slowing down for. A legitimate seller will wait a day for your mechanic’s schedule to open up. Confusing a dealer’s own “certified” inspection with an independent one. Dealer or CPO inspections follow the dealer’s own checklist and are performed by the dealer’s staff – useful, but not a substitute for your own independent PPI on a used (non-CPO) purchase. Not budgeting the inspection cost into your offer. If the PPI turns up minor, fixable issues, use the estimated repair cost as a negotiating point on price rather than walking away entirely – a $300 fix on an otherwise sound car is often still a good deal. For the fuller picture on what used cars actually cost right now, current loan rates, and CPO pricing, see my complete [used car buying guide](https://savingtoinvest.com/buying-a-used-car-unnecessary-hassle-or-financially-savvy/) ↗. And once the mechanical side checks out, don’t forget to shop [insurance quotes](https://savingtoinvest.com/combining-insurance-policies-for-discounts-and-convenience/) ↗ before you finalize the purchase, since that’s a real monthly cost that varies a lot by model. If you’re weighing negotiation tactics on top of the inspection – dealer versus private-party, end-of-year timing, or how to handle the finance office – I’ve covered those separately in my [10 car buying tips](https://savingtoinvest.com/ten-car-buying-tips-to-getting-best/) ↗ and [best time of year to buy](https://savingtoinvest.com/end-of-year-car-deals-how-to-save-when-auto-shopping-dealers-beware/) ↗ posts. And if you already own the car and just want to avoid getting oversold at your next service appointment, my [car repair tips](https://savingtoinvest.com/car-repairs-5-tips-to-avoid-getting/) ↗ post covers that side of it. ## Looking Ahead A couple of things I’m watching heading into the next few years in the world of AI. Digital odometer rollback is getting easier, not harder, as more of the tampering happens through software rather than physical gear swaps – expect vehicle history providers to keep expanding their odometer-discrepancy flags as a selling point. NMVTIS coverage has been slowly improving as more states report title and junk/salvage data promptly, which should make the low-cost official report an increasingly good value against Carfax and AutoCheck’s higher retail prices. I’ll update this page if pricing or coverage shifts meaningfully for any of these tools. Frequently Asked Questions QHow much does a pre-purchase used car inspection cost? AA shop-based inspection typically runs $150 to $250. A mobile mechanic who comes to the seller's location usually costs $200 to $400 plus travel. Either way, it's less than 1% of the average used car's purchase price. QIs Carfax or AutoCheck better for checking a used car's history? AAutoCheck is cheaper at $29.99 per report versus $44.99 for Carfax, and Carfax generally has more detailed maintenance records. For the lowest cost with the most authoritative title data, an official NMVTIS report from an approved provider (usually $9.90-$15) is worth adding to either one. QDoes a clean NHTSA recall check mean the car has no problems? ANo. NHTSA's free VIN lookup only covers open safety recalls - it has no accident history, title brand, or odometer data. A car can pass a recall check clean and still carry a salvage title or a rolled-back odometer. QWhat is NICB VINCheck and is it really free? AYes, it's a free public tool from the National Insurance Crime Bureau that tells you if a vehicle has been reported stolen and not recovered, or reported as an insurance total-loss. It doesn't cover title brands, accidents, or mileage, so pair it with a paid history report. QWhat are the biggest red flags during a used car inspection? AA seller who won't allow an independent inspection or real test drive, a mismatched or recently out-of-state title, pressure to skip paperwork, a price well below comparable listings, and fresh undercoating on an older vehicle that could be masking frame or flood damage. QCan I trust the seller's own mechanic's inspection report? ABe cautious. Even a well-intentioned seller-arranged mechanic has an inherent conflict of interest. Always arrange your own independent inspection at a shop or mobile mechanic of your choosing. QHow common is odometer fraud on used cars? ANHTSA estimates it costs U.S. buyers over $1 billion annually across roughly 450,000 vehicles sold with falsified mileage each year. Digital odometers haven't eliminated the problem - a vehicle history report showing a mileage drop between two readings is a clear warning sign. **Categories:** Taxes and Retirement --- ### [15-Year vs. 30-Year Fixed Mortgage in 2026 — Which One Actually Saves You Money?](https://savingtoinvest.com/15-year-vs-30-year-mortgage-which-is-better/) **Published:** October 10, 2010 **Author:** Andy **Content:** ### Key Takeaways - As of mid-2026, the average 15-year fixed mortgage rate runs roughly 0.7 to 0.9 percentage points below the average 30-year rate - currently around 5.8%-5.95% versus 6.5%-6.6%. - A 15-year loan builds equity dramatically faster and saves tens of thousands in total interest, but the required monthly payment is meaningfully higher for the same loan amount. - The standard guideline: if your total debt-to-income ratio (DTI) stays comfortably under 30-36% with the higher 15-year payment, it's worth considering; above that, a 30-year term is the safer default. - You don't have to choose only one path - taking a 30-year loan and voluntarily making extra principal payments gets you most of the payoff-speed benefit while keeping the lower required payment as a safety net. - First-time buyers and dual-income households with less job security typically lean 30-year; buyers with stable income, an established emergency fund, and a shorter time horizon to retirement often do well with 15-year. As of mid-2026, the average 30-year fixed mortgage rate is running around 6.5%-6.6%, while the 15-year fixed averages roughly 5.8%-5.95%, according to [Freddie Mac’s Primary Mortgage Market Survey](http://www.freddiemac.com/pmms). That gap of roughly 0.7 to 0.9 percentage points is a big part of why the 15-year option keeps coming up whenever people compare mortgage terms. The catch is the monthly payment. A 15-year loan pays off the same principal in half the time, which means a meaningfully higher required payment even with the lower rate. Here’s how to actually work out which term fits your situation, rather than just going with whichever sounds more responsible. Covered in this Article: [Toggle](#) - [The Real Trade-Off: Payment vs. Total Interest](#The_Real_Trade-Off_Payment_vs_Total_Interest) - [How to Tell If You Can Actually Afford the 15-Year Payment](#How_to_Tell_If_You_Can_Actually_Afford_the_15-Year_Payment) - [Why First-Time Buyers Often Lean 30-Year](#Why_First-Time_Buyers_Often_Lean_30-Year) - [The Middle Path: Extra Principal Payments](#The_Middle_Path_Extra_Principal_Payments) - [Two Examples](#Two_Examples) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) ## The Real Trade-Off: Payment vs. Total Interest On a $400,000 loan, a 30-year mortgage at 6.55% runs about $2,550 a month in principal and interest. The same loan as a 15-year at 5.85% runs closer to $3,330 a month — about $780 more every month. What you get for that higher payment: the 15-year loan is paid off nine years sooner and costs roughly $270,000 less in total interest over the life of the loan, versus the 30-year option. That’s the entire trade-off in one sentence — faster payoff and dramatically lower lifetime cost, against a payment that has to fit your budget every single month for 15 years straight. ## How to Tell If You Can Actually Afford the 15-Year Payment The standard rule of thumb is your total debt-to-income ratio (DTI) — mortgage, taxes, insurance, auto loans, student loans, and credit card payments combined, divided by gross monthly income. If that ratio stays comfortably under 30-36% with the higher 15-year payment included, the shorter term is worth serious consideration. For example, someone earning $8,000 a month gross should generally keep total debt payments under roughly $2,400-$2,880 to stay in that range. If the 15-year payment alone would push you past that, a 30-year term with the option to prepay principal voluntarily is the more resilient choice. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates as mortgage rates move.* ## Why First-Time Buyers Often Lean 30-Year First-time buyers typically stay in their initial home for only five to ten years before upgrading as income or family size grows. A 30-year term generally lets the same monthly payment buy a somewhat larger or better-located home than a 15-year term would, and it preserves a larger mortgage interest deduction for buyers in higher tax brackets. Dual-income households should also weigh job security carefully. If a layoff would turn a two-income household into a one-income one, the lower, more flexible 30-year payment is much easier to sustain through that kind of disruption than a 15-year commitment. ## The Middle Path: Extra Principal Payments You don’t have to pick one term permanently. Taking a 30-year mortgage and voluntarily adding extra principal payments when you can afford to gets you much of the 15-year benefit while keeping the lower required payment as a fallback in a tight month. One extra full payment a year on a 30-year loan typically shaves off roughly 4-6 years and a meaningful chunk of total interest. Biweekly payments instead of monthly (which effectively add one extra payment annually) accomplish something similar. Neither locks you into the higher required payment the way an actual 15-year loan does. ## Two Examples **Aisha**, 29, is buying her first home with a stable government job and low other debt. Her total DTI with a 15-year payment would be 27% — comfortably under the threshold — so she takes the 15-year loan and locks in the lower rate and faster payoff. **Ben and Carla**, both self-employed with variable monthly income, are buying a $450,000 home. A 15-year payment would push their DTI to 38% in a slow month. They choose a 30-year loan instead, then set up automatic extra principal payments in their stronger months — flexible in a downturn, still accelerating payoff when cash flow allows. ## Common Issues to Watch Out For I get asked about this trade-off constantly, and a few misunderstandings come up again and again. **Comparing only the interest rate, not the total payment.** A lower rate on a 15-year loan doesn’t mean a lower payment — the shorter amortization period usually more than offsets the rate difference. **Not stress-testing the 15-year payment against a income disruption.** Run the numbers assuming one income temporarily disappears, not just your current best-case budget. **Assuming extra principal payments on a 30-year loan get applied correctly.** Confirm with your servicer that additional payments are applied to principal, not held as an early payment toward next month’s bill — some servicers require you to specify this explicitly. **Ignoring the opportunity cost of extra principal payments.** Money used to pay down a 5.85% mortgage faster is money not invested elsewhere — that’s a reasonable trade for many people, but worth acknowledging rather than assuming the math is one-sided. ## Looking Ahead: 2027 Outlook Mortgage rates through 2026 have moved with Federal Reserve policy and inflation data more than any fixed seasonal pattern, so I’d treat any specific 2027 rate prediction skeptically. What’s worth watching: Fed rate decisions at each meeting, and whether the spread between 15-year and 30-year rates narrows or widens as the yield curve shifts. I’ll update the figures on this page as new data comes in rather than project a specific number here. **Related reading:** - [Should I Refinance My Mortgage and Do I Qualify?](https://savingtoinvest.com/should-i-refinance-my-mortgage-and-do-i-qualify/) - [Budgeting Pitfalls in 2026 — Why Most Budgets Fail and How to Fix It](https://savingtoinvest.com/budgeting-pitfalls-and-remedies/) - [Portfolio Diversification in 2026](https://savingtoinvest.com/importance-of-diversification/) Frequently Asked Questions QWhat's the current average rate difference between 15-year and 30-year mortgages? AAs of mid-2026, roughly 0.7 to 0.9 percentage points, with 15-year rates averaging around 5.8%-5.95% and 30-year rates around 6.5%-6.6%. QIs a 15-year mortgage always the better financial choice? ANot always. It saves significant total interest and builds equity faster, but only makes sense if the higher required monthly payment fits comfortably within your budget, including a buffer for income disruption. QCan I get the benefits of a 15-year loan without the higher required payment? AYes - taking a 30-year loan and voluntarily making extra principal payments (an extra payment a year, or biweekly payments) captures much of the faster-payoff benefit while keeping the lower required payment as a safety net. QWhat debt-to-income ratio should I target before choosing a 15-year mortgage? AA common guideline is keeping your total DTI - all debt payments divided by gross income - comfortably under 30-36% including the 15-year payment. QWhy do first-time homebuyers often choose 30-year mortgages? AThey typically move again within five to ten years, so a 30-year term's lower payment often allows a larger or better-located home purchase, plus a bigger mortgage interest deduction in the early years when interest makes up most of the payment. **Categories:** Real Estate and Mortgages **Tags:** home, homebuyers, loan, mortgage, Rates, refinance --- ### [California (CA) vs. Florida (FL): Where Your Tax Refund Goes Further in 2026](https://savingtoinvest.com/california-vs-florida-where-your-tax-refund-goes-further-in-2026/) **Published:** February 18, 2026 **Author:** Andy **Content:** ### Key Takeaways - The average federal tax refund hit $3,275 through the 2026 filing season, up 11.3% from $2,942 a year earlier - but its real-world value depends heavily on where you live. - California's (CA) top state income tax rate is 13.3%; Florida (FL) has no state income tax at all, so a Florida refund isn't offsetting state withholding the way a California one often is. - Florida's median home price (~$395,000) is less than half California's (~$900,000), and statewide rent averages $1,977/month in Florida versus $2,666 in California. - Groceries and utilities are now close to a wash between the two states - the real gap is in housing and childcare, where Florida runs roughly 26% and 80% cheaper. - Lower-income households don't always come out ahead in Florida - its heavier reliance on sales and property tax can be more regressive than California's progressive system with credits like the EITC. - A refund is a strategic tool either way: consider a 40/30/30 split between debt payoff or emergency savings, tax-advantaged investing, and near-term needs. The average federal tax refund reached **$3,275** through the 2026 filing season — up 11.3% from $2,942 at the same point in 2025, according to IRS filing statistics. For a lot of households, that’s the single biggest lump sum they’ll see all year. Where you live changes what that money actually buys. A $3,275 refund in a Los Angeles apartment covers a different slice of life than the same check does in a Tampa suburb. California (CA) and Florida (FL) are two of the most popular destinations for interstate movers right now, and their tax and cost structures sit at opposite ends of the spectrum. Here’s where that refund actually goes further in 2026. Covered in this Article: [Toggle](#) - [The 2026 Refund Reality Check](#The_2026_Refund_Reality_Check) - [State Income Taxes: The Hidden Refund Eraser](#State_Income_Taxes_The_Hidden_Refund_Eraser) - [Housing Costs: Buying Space vs. Buying Time](#Housing_Costs_Buying_Space_vs_Buying_Time) - [Groceries and Utilities: Closer Than You’d Think](#Groceries_and_Utilities_Closer_Than_Youd_Think) - [Where Does a $3,275 Refund Go?](#Where_Does_a_3275_Refund_Go) - [The Low-Income Paradox: Is Florida Always Cheaper?](#The_Low-Income_Paradox_Is_Florida_Always_Cheaper) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Strategies to Maximize Your Refund Anywhere](#Strategies_to_Maximize_Your_Refund_Anywhere) - [Looking Ahead: 2027](#Looking_Ahead_2027) - [Final Thoughts: The Winner for 2026](#Final_Thoughts_The_Winner_for_2026) ## The 2026 Refund Reality Check [IRS data through the April 17 filing deadline](https://www.irs.gov/newsroom/filing-season-statistics-for-week-ending-april-17-2026) shows refunds running well ahead of last year, largely due to provisions in the One Big Beautiful Bill (OBBB) that boosted several credits and deductions for the 2025 tax year. The IRS had issued roughly $296 billion in refunds by that point in the season. More money back is good news on its own. But your refund is only “equal” at the Treasury level — the moment you spend it, state and local costs take over. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get updates as new IRS and cost-of-living data comes in throughout the year.* ## State Income Taxes: The Hidden Refund Eraser Your federal refund has already cleared the national tax brackets — the state story is separate. California maintains one of the highest state income tax rates in the country, topping out at **13.3%** on income over $1 million, layered on top of the [federal brackets](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/) everyone pays. Even middle-income Californians lose a meaningful share of every paycheck to the state throughout the year — often more than their federal refund replaces. ### The Florida Advantage Florida is one of nine states with **no personal income tax**. Nothing is being withheld at the state level to “catch up on,” so a Florida refund functions more like pure bonus money than a partial reimbursement. ## Housing Costs: Buying Space vs. Buying Time Housing remains the largest line item in most household budgets. In 2026, California’s statewide median home price has climbed above **$900,000** (the California Association of Realtors put it at $904,640 in June), while Florida’s sits at roughly **$395,000** — less than half. Renters see a similar gap. Statewide [average rent runs $2,666/month in California versus $1,977/month in Florida](https://www.rentcafe.com/average-rent-market-trends/us/ca/), per 2026 RentCafe data. At those rates, a $3,275 refund covers a bit over a month of rent in California and closer to a month and two-thirds in Florida. Florida’s relative affordability isn’t just about no income tax — it also reflects a larger, faster-building housing supply and lower land and construction costs across most of the state outside pricier coastal markets like Miami. For the bigger picture on where home prices are headed nationally, see our [mortgage rates and home prices outlook](https://savingtoinvest.com/why-rising-rates-will-boost-rather-than-lower-home-prices-and-purchases/). ## Groceries and Utilities: Closer Than You’d Think This is where the “Florida is cheaper across the board” narrative gets more nuanced. California’s grocery prices run about 9.3% above the national average (third-highest in the country), with average weekly grocery spending around **$297.72**. Florida isn’t far behind at **$287.27** a week — a gap of roughly 3.6%, not the dramatic difference many assume. Utilities tell a similar story: average monthly electric bills run about **$170** in California and **$167** in Florida — essentially a wash. Groceries and utilities are the exception to the “Florida is uniformly cheaper” assumption, not the rule. The real gap shows up in childcare and gas. Florida’s average infant center-care cost runs about **$1,000/month**, versus roughly **$1,800/month** in California. At the pump, Californians pay roughly **$1.80 more per gallon** than Florida drivers as of mid-2026, driven by the state’s environmental fees and higher refining costs. ## Where Does a $3,275 Refund Go? Here’s what that refund actually buys once basic state-level obligations are accounted for: Expense CategoryCaliforniaFloridaStatewide Avg. Rent~1.2 months~1.7 monthsWeekly Groceries~11 weeks~11.4 weeksElectric Bill~19 months~19.6 monthsInfant Childcare~1.8 months~3.3 months Take Maria, a renter in Sacramento: her $3,275 refund covers about five weeks of rent before it’s gone. Jake, renting a similar unit in Tampa, stretches the same check across almost seven weeks — and his refund isn’t offsetting any state income tax withholding in the first place. ## The Low-Income Paradox: Is Florida Always Cheaper? It’s a common assumption that Florida is cheaper for everyone, but that’s not quite true for lower-income households. Florida leans heavily on sales and property tax, which tends to be more regressive — it takes a bigger relative bite out of income under roughly $30,000. California’s tax system is more progressive and pairs with credits like the [Earned Income Tax Credit (EITC)](https://savingtoinvest.com/earned-income-tax-credit-eitc-qualification-and-income-threshold-limits/), which can put more money back in the pockets of lower-income filers than Florida’s flat sales-tax structure does. ### High Earners vs. Middle Class If you’re a high earner, Florida’s lack of income tax is close to an unambiguous win for wealth preservation. If you’re middle-class, it’s more of a tradeoff — California often pays a wage premium in fields like tech, which can offset some of the higher cost of living, but not all of it. ## Common Issues to Watch Out For I get questions about this comparison a lot, so a few things worth flagging: - **Don’t compare refund size alone.** A bigger refund isn’t automatically “winning” — it usually means you overpaid through withholding all year and got an interest-free loan back. - **Cost-of-living comparisons hide metro-level variation.** Miami and coastal California cities can land closer in cost than the statewide averages suggest — don’t assume every Florida city is uniformly cheap. - **State tax rates can change.** California’s legislature revisits its brackets periodically, and Florida’s constitution would require a statewide ballot measure to introduce an income tax — worth knowing if you’re planning a multi-year move. - **Sales tax adds up differently.** Florida’s 6% base sales tax applies to a broader range of services than California’s, so heavy spenders on services may see a smaller “no income tax” benefit than expected. ## Strategies to Maximize Your Refund Anywhere Wherever you live, treat your refund as a strategic tool rather than found money. A simple split works well in either state. Put **40%** toward an [emergency fund parked in a high-yield savings account](https://savingtoinvest.com/high-yield-savings/) or high-interest debt — paying down a 20%+ APR balance is close to the best guaranteed return available anywhere. Direct **30%** into a tax-advantaged account like a [Roth vs. Traditional IRA](https://savingtoinvest.com/traditional-ira-versus-roth-ira-contribution-and-phase-out-income-limits/) or a 529 plan — in Florida, that money grows without state tax drag on the contributions funding it. Use the remaining **30%** for near-term needs or improvements, like weatherization, that lower future costs. If your refund topped $3,000, it may also be worth adjusting your W-4 withholding so you get that money monthly instead of loaning it to the IRS interest-free all year. ## Looking Ahead: 2027 Refunds have trended higher in 2026 largely due to OBBB provisions phasing in for the 2025 and 2026 tax years — whether that continues into the 2027 filing season depends on whether Congress extends or modifies those provisions before they’re set to shift. Watch for IRS guidance in late 2026 on any inflation-adjusted bracket and credit changes ahead of the 2027 season. On the cost side, California’s housing supply pressure and Florida’s rising homeowners’ insurance costs are both worth watching — Florida’s insurance market has been chipping away at some of its affordability advantage, even as its lack of income tax remains unchanged. ## Final Thoughts: The Winner for 2026 By the numbers, Florida stretches a refund further in 2026 — mainly through no income tax, roughly half the home prices, and dramatically lower childcare costs, not through cheaper groceries or utilities, which are now close to even between the two states. That said, the right state depends on career stage and family needs. California still offers a wage premium in tech and entertainment that can offset some of its costs, while Florida offers a lower, more predictable cost of living for those prioritizing take-home value over top-end earning potential. Frequently Asked Questions QWhat was the average federal tax refund in 2026? A$3,275, based on IRS filing-season data through the April 17, 2026 deadline - up 11.3% from $2,942 at the same point in 2025. QDoes Florida really have no state income tax? AYes. Florida is one of nine states with no personal income tax, so refund money isn't offsetting any state withholding the way it often does in California. QIs Florida cheaper than California for everyone? ANot necessarily. Florida's reliance on sales and property tax can be more regressive for households earning under roughly $30,000, while California's progressive tax system and credits like the EITC can offset more of the burden for lower earners. QHow much further does a refund go on rent in Florida versus California? AAt 2026 statewide averages ($1,977/month in Florida versus $2,666/month in California), a $3,275 refund covers roughly 1.7 months of rent in Florida versus 1.2 months in California. QAre groceries and utilities actually cheaper in Florida? AOnly slightly. 2026 data shows about a 3.6% grocery-cost gap and near-identical utility bills between the two states - the bigger differences are in housing and childcare, not day-to-day costs. QWhat should I do with a large tax refund? AConsider a 40/30/30 split: 40% to debt payoff or an emergency fund, 30% into a tax-advantaged account like a Roth IRA or 529 plan, and 30% toward near-term needs that reduce future costs. **Categories:** Taxes and Retirement --- ### [Should You Buy a House If the Mortgage Is Double Your Rent? Here's the Actual Math](https://savingtoinvest.com/should-we-buy-this-house-if-the-mortgage-is-double-our-rent/) **Published:** December 10, 2023 **Author:** Andy **Content:** ### Key Takeaways - Doubling (or more) your rent payment when you buy is normal and not, by itself, a red flag - rent and mortgage payments are calculated completely differently and often aren't comparable. - The number that actually matters is your price-to-income ratio and debt-to-income (DTI) ratio, not the multiple over your current rent. - A common rule of thumb: total housing costs (principal, interest, taxes, insurance) at or below 28% of gross monthly income, and total debt payments at or below 36% - the '28/36 rule.' - As of mid-2026, the 30-year fixed mortgage rate is running about 6.5%-6.7%, and the median US existing-home price is $440,600 - both numbers you need for a realistic affordability estimate. - Your down payment, other debts (student loans, car payments), and how stable your income is matter more than the rent-to-mortgage multiple. - Anchoring on rent instead of your real numbers is one of the most common reasons buyers either overbuy or talk themselves out of a home they could genuinely afford. “Our mortgage would be almost double what we pay in rent right now — is that insane?” I get a version of this question constantly, and the honest answer is: that comparison is almost never the right one to make. Rent versus a future mortgage payment feels like the natural anchor because it’s the number you already know. But it’s comparing your payment today, on a place you may have deliberately under-bought for your current situation, against a payment on a home you actually want to live in long-term. The real question isn’t “how much bigger is this than my rent” — it’s whether the new payment fits your income, and whether the home is one you’ll be building equity in for years. Covered in this Article: [Toggle](#) - [Why “Double My Rent” Is the Wrong Comparison](#Why_%E2%80%9CDouble_My_Rent%E2%80%9D_Is_the_Wrong_Comparison) - [The Numbers That Actually Determine Affordability](#The_Numbers_That_Actually_Determine_Affordability) - [What the Rent Comparison Actually Gets Wrong](#What_the_Rent_Comparison_Actually_Gets_Wrong) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) ## Why “Double My Rent” Is the Wrong Comparison Here’s a real scenario a young couple brought to me recently. They were renting a smaller apartment for $1,400 a month and looking at a $360,000 house with an estimated $2,750 monthly payment (principal, interest, and taxes) — roughly double what they were paying to rent. Their combined income was $140,000 a year, or about $7,800 a month after taxes. They had $45,000-$50,000 saved for a down payment and could still save $2,400 a month toward it in the meantime. On paper, the “double your rent” framing made them nervous. The actual math said something different. At $140,000 in annual income, a $2,750 monthly payment works out to roughly 24% of their gross monthly income — comfortably under the 28% housing-cost guideline, before even accounting for the raises they were likely to see over time. The rent comparison was irrelevant. The income comparison is what mattered, and it said they were in good shape to buy. ## The Numbers That Actually Determine Affordability Skip the rent comparison and run these instead: **Price-to-income ratio.** Divide the home price by your gross annual household income. A ratio at or below 3-4x is generally considered affordable in most markets; above 5x starts to strain most household budgets even at today’s rates, though high cost-of-living metros routinely run higher. **The 28/36 rule.** Your total monthly housing cost — principal, interest, property tax, and insurance (often abbreviated PITI) — shouldn’t exceed 28% of your gross monthly income. Your total debt payments, including that housing cost plus car loans, student loans, and minimum credit card payments, shouldn’t exceed 36%. Most conventional lenders use a version of this DTI math to determine what they’ll actually approve you for, so it’s worth calculating it yourself before you fall in love with a listing. **What today’s rate actually does to the math.** At the current 30-year fixed rate of roughly 6.5%-6.7%, a $360,000 loan runs about $2,275-$2,325 a month in principal and interest alone, before taxes and insurance. That’s a meaningfully bigger monthly hit than the same loan would have been at 2021’s sub-3.5% rates — see my full breakdown of [mortgage rates and home prices in 2026](https://savingtoinvest.com/why-rising-rates-will-boost-rather-than-lower-home-prices-and-purchases/) for the current-rate math and what’s likely ahead in 2027. **Consider Marcus and Elena**, a different couple I’ve talked through this with. They earn $95,000 combined and were looking at a $310,000 home with an estimated $2,450 PITI payment. That’s about 31% of their gross monthly income — over the 28% guideline on its own. But they have no car payments and only $150 a month in student loan payments, keeping their total DTI at 33%, still under the 36% ceiling. Their case shows why you can’t stop at the housing-cost number alone; the full debt picture is what a lender — and you — should actually be weighing. ## What the Rent Comparison Actually Gets Wrong Rent and mortgage payments aren’t calculated the same way, which is the core reason comparing them directly misleads people: Rent is set by a landlord based on the local market, not your personal finances — it has zero relationship to your income, your debt, or your savings. A mortgage payment is calculated from your specific loan amount, rate, and term, and a lender has already vetted it against your income before approving you. Rent also often reflects a home you deliberately under-bought for your current life stage — a starter apartment while you save, a smaller place before a growing family. A home you’re buying is usually sized for where you’re headed, not just where you are, which naturally makes the payment bigger. Finally, none of your rent builds equity. Even a mortgage payment that feels large is partly going toward an asset you own, not just monthly consumption — a comparison rent-to-mortgage ratios don’t capture at all. ## Common Issues to Watch Out For **Anchoring on the rent multiple instead of the income math.** I see this constantly — a payment that’s “double the rent” gets treated as inherently risky, when the real test is the 28/36 math above. **Ignoring other debts when estimating what you can afford.** A big car payment or student loan balance can turn an affordable-looking housing payment into an over-leveraged one once total DTI is calculated. **Not stress-testing for a rate change if you’re using an ARM.** If your loan isn’t a 30-year fixed, run the numbers at a rate 1-2 points higher to make sure a future reset wouldn’t break your budget. If rates do drop after you buy, [refinancing](https://savingtoinvest.com/should-i-refinance-my-mortgage-and-do-i-qualify/) is always an option worth revisiting later. **Forgetting property tax and insurance in the “mortgage” number.** People often mentally price a house using just principal and interest, then get surprised when the full PITI payment — including property tax and homeowners insurance — is meaningfully higher. **Buying at the very top of what a lender approves you for.** Being approved for a payment doesn’t mean it’s comfortable to actually live with once utilities, maintenance, and normal life expenses are added back in. ## Looking Ahead: 2027 Outlook With the 30-year fixed expected to stay in the 6.2%-6.5% range through most of 2027 according to major forecasters, the price-to-income math isn’t likely to get dramatically easier from rates alone. If you’re weighing buying now versus waiting, see my [full 2027 mortgage rate and home price outlook](https://savingtoinvest.com/why-rising-rates-will-boost-rather-than-lower-home-prices-and-purchases/) for what’s actually likely to move next year. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) and I’ll update this page as rates and affordability benchmarks shift.* If a 15-year loan is on your radar as a way to build equity faster, see my [15-year vs. 30-year mortgage comparison](https://savingtoinvest.com/15-year-vs-30-year-mortgage-which-is-better/) for how the payment and total-interest tradeoffs actually compare at today’s rates. And if you’re still deciding between renting and buying at all, my [apartment rental guide](https://savingtoinvest.com/apartment-rental-tips-and/) covers the renter’s side of that same decision. Frequently Asked Questions QIs it a red flag if my mortgage payment would be double my current rent? ANot by itself. Rent and mortgage payments are calculated completely differently - rent reflects the local market and often a home you deliberately under-bought for your current stage of life, while a mortgage payment is vetted against your actual income and debt by a lender. Compare the mortgage payment to your income instead, using the 28/36 rule. QWhat is the 28/36 rule for home affordability? AYour total housing costs (principal, interest, property tax, and insurance) should generally stay at or below 28% of your gross monthly income, and your total debt payments - housing plus car loans, student loans, and minimum credit card payments - should stay at or below 36%. QWhat price-to-income ratio is considered affordable for a home? AA home price at or below 3-4 times your gross annual household income is generally considered affordable in most markets. Above 5 times income starts to strain most budgets, though high-cost metro areas routinely run higher than this rule of thumb. QHow much does today's mortgage rate affect what I can afford? ASignificantly. At a 6.5%-6.7% 30-year fixed rate, the same loan amount carries a meaningfully higher monthly payment than it would have at 2021's sub-3.5% rates - often several hundred dollars more per month on a typical loan size. QShould I count my student loans and car payment when figuring out affordability? AYes. Lenders calculate your total debt-to-income ratio, not just your housing payment in isolation, and so should you - a housing payment that looks affordable on its own can push you over a comfortable total-debt threshold once other obligations are added. QDoes a bigger down payment change this math? AYes, directly - a larger down payment lowers your loan amount, which lowers your monthly principal and interest payment and improves your price-to-income and DTI ratios accordingly. **Categories:** Taxes and Retirement --- ### [Preparing For Layoffs: Steps to Take Ahead of Time And What To Do First](https://savingtoinvest.com/tips-on-preparing-for-potential-job/) **Published:** May 9, 2020 **Author:** Andy **Content:** ### Key Takeaways - Build (or protect) a three-to-six-month emergency fund before a layoff hits - it's your single most important buffer. - Get more credit cards while you're still employed, but treat them as a last resort, not a spending tool. - Keep your resume and network current on an ongoing basis, not just after a layoff notice. - Know your state unemployment rules and your severance rights before you need them - don't wait until the day you're let go. - Review your employment contract now for notice periods, COBRA costs, and payouts you may be owed. - Even in a secure role, these steps cost you little to prepare and a lot to skip. With a slowing economy, government and private sector reductions in force, and the prospect of a downturn always around the corner, you may get into work one of these days and hear that your position has been made redundant. Are you prepared for this scenario and its likely impact on your financial security? In weak economic times with lower company profits and corporate layoffs rising, you need contingency plans in place before you’re standing in the middle of one — whether you’re in a dual-income or single-income household. Here are the key items to plan ahead for. Covered in this Article: [Toggle](#) - [Get Your Financial House in Order Before Layoffs Start](#Get_Your_Financial_House_in_Order_Before_Layoffs_Start) - [More Credit Cards (Before You Need Them)](#More_Credit_Cards_Before_You_Need_Them) - [Budgeting 101](#Budgeting_101) - [Update Your Resume and Network](#Update_Your_Resume_and_Network) - [Family Plan and Support](#Family_Plan_and_Support) - [Know Your Employee Rights and Unemployment Benefits](#Know_Your_Employee_Rights_and_Unemployment_Benefits) - [Even If Your Job Feels Safe](#Even_If_Your_Job_Feels_Safe) ## Get Your Financial House in Order Before Layoffs Start **Emergency fund** — have at least three to six months of living costs close at hand in readily available savings or money market accounts, to deal with the sharp drop in household income a job loss brings. With a large share of Americans living paycheck to paycheck, building that buffer ahead of time matters more than ever. If you don’t have that kind of cash available, keep other accessible sources — like a home-equity line of credit — untapped. It’s a lifeline if you ever need it, and it costs nothing while you have an income. Pay off credit card debt where possible while you still have income; it’s normally the most expensive debt you’re carrying. And know how much you could actually get from state unemployment benefits ahead of time — these are temporary, and even the maximum amounts may be well below what you need to make ends meet, so don’t rely on them alone. ## More Credit Cards (Before You Need Them) Here’s a tip that sounds counterintuitive: get more credit cards while you still have a job — but don’t use them. It’s always easier to get approved for credit when you have income and a solid credit score. The cards become a last-resort source of funds if things get tight. They should stay a last option, but they can provide valuable breathing room before you land the next job. ## Budgeting 101 Start keeping a budget now so you know what you’re spending on and where you could realistically cut back if income dropped significantly. Now is also not the time for non-essential big-ticket purchases. If you’re facing the real prospect of a layoff, analyze your budget for what life would look like without your income — what expenses are mandatory, what’s discretionary, and what you’d adjust first. ## Update Your Resume and Network Keep your resume and professional network current before a potential layoff, not after. A large share of jobs are never formally advertised, so knowing the right contacts in your industry — or the one you want to move into — is critical. Use LinkedIn and similar platforms to maintain and extend your network on an ongoing basis, not just when you need it. Starting the search well in advance, if you sense a layoff coming, puts you in a stronger negotiating position and gives you time to actually evaluate options rather than take the first offer out of urgency. Some people use a layoff as the push to start a business or change career tracks entirely. That can work well for the right person — just make sure your financial house is in order before making that leap. ## Family Plan and Support Talk about how you’d manage without your income before you actually need to. If you have a family, involve everyone in the conversation — a layoff affects the whole household, directly or indirectly. Family can be your best support system, and discussing these scenarios ahead of time reduces the stress on relationships if and when things actually get tough. ## Know Your Employee Rights and Unemployment Benefits If you’re expecting a layoff, know what you’re entitled to. Check your state unemployment agency’s website for the application process and qualification rules ahead of time. Understand your health coverage costs under COBRA — it’s in the documents from when you were hired but rarely read until it’s urgent, so pull them from your HR/benefits portal now. Review your employment contract for termination clauses, notice periods, and payouts you may be owed — including unused leave, pension provisions, and [severance you may be able to negotiate](https://savingtoinvest.com/being-laid-off-negotiate-that-severance-package/) rather than just accept as offered. Get direct phone numbers and names for people in HR, payroll, and benefits — reaching them through a general company switchboard after you’ve left can be genuinely difficult. ## Even If Your Job Feels Safe Even in a relatively secure role or as a high earner, these steps are worth taking. Layoffs aren’t the only route to a sudden drop in income, and being prepared costs you little if the worst never happens. For more on what’s driving today’s job cuts specifically — including the AI-related layoffs reshaping tech and other industries — see our [tech layoffs and AI shift guide](https://savingtoinvest.com/tech-layoffs-and-the-ai-shift-what-ongoing-job-cuts-mean-for-your-career-and-wallet/), which covers the broader trend and a fuller career survival kit. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates on navigating layoffs and job security.* For related reading, see [10 red flags that your job is on the AI chopping block](https://savingtoinvest.com/10-red-flags-that-your-job-on-the-ai-chopping-block/) and [Maximum weekly unemployment benefits by state](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/). Frequently Asked Questions QHow much should I have in an emergency fund before a potential layoff? AThree to six months of essential living costs is the standard target, kept in a readily accessible savings or money market account rather than tied up in investments you'd have to sell at a bad time. QShould I really open new credit cards if I think I might be laid off? AYes, if you do it while you're still employed with steady income and a solid credit score - it's much harder to get approved after a layoff. Treat the cards as a last-resort cushion, not a spending source. QWhat should I review in my employment contract before a layoff happens? ALook for notice periods, any severance formula or eligibility language, unused leave payout rules, pension or 401(k) vesting provisions, and your COBRA health coverage costs - all of it is easier to find and understand now than after you've left. QIs severance pay something I can negotiate, or is it fixed? AIn most states it's negotiable - severance isn't legally required in the vast majority of the country, which means the details are often up for discussion. See our guide to negotiating your severance package for state-by-state rules and what to ask for. QIs it worth preparing for a layoff even if my job feels secure? AYes. A layoff isn't the only way income can drop suddenly, and an emergency fund, updated resume, and clear understanding of your benefits cost you little to maintain if you never need them. **Categories:** Career and Relationships **Tags:** career, family, job, layoff, Severance --- ### [Seven Ways to Avoid Banks Taking Your Money in Fees and Charges](https://savingtoinvest.com/avoiding-bank-fees/) **Published:** March 17, 2008 **Author:** Andy **Content:** We have all read about and surely experienced the ever increasing fees and charges that banks and other financial institutions charge us. Bank fees add up to billions of dollars in revenue for banks every year, and late fees, over-the-limit charges and overdraft fees make up a large share of that total. **1. Monthly Account Keeping or Service Fee** The most common fee you pay for an organization to manage your bank account. Generally runs anywhere from $3 to $15 per month. However, you can search around and find ways to avoid this fee by finding a zero fee account or meeting some no-fee requirements like having a certain account balance or home loan with the bank. For example, I have a number of [high yield savings accounts](https://savingtoinvest.com/high-yield-savings/) that do not charge a monthly fee and offer high rates of interest. **2. Internet Banking fee**: A fee you may be charged for transacting over the internet (0.50c to $1 per transaction). If you are paying this, then choose another account or bank. Most banks do not charge an internet fee for transaction accounts, especially if you are already paying a monthly service fee. In fact banks are encouraging consumers to use the internet as it is the cheapest and highest returning channel for them. **3. ATM transaction fee**: When using your ATM card, you may be charged a fee if you exceed the number of transactions nominated for a particular time frame (e.g. per month) or use an ATM from a different bank. The fee for this can range from $2 to $5 (sometimes more, plus a fee from the other bank on top). Again, this is an easy fee to avoid with some forward planning to use your own bank’s or partner ATMs. You can also select an account that allows some non-bank ATM usage or rebates you for any ATM fees incurred. **4. Currency Exchange Fee**: One place banks rake in the money is in fees and charges related to currency related exchanges and transactions. Whether it charges for incoming or outgoing wires, travelers checks or ATM transactions, you will get charged a fee. Wire transfers range from $30 to 1% of the entire transaction, while so-called “free” travelers checks fees are made up in the poor exchange rates you get. If you use an overseas ATM (or a foreign bank’s ATM), you may be charged a flat fee plus a percentage for withdrawals. > Avoiding foreign currency related fees is near impossible, and from my experience traveling overseas and using foreign savings accounts, the cheapest way to get money is to use an ATM withdrawal. You get a solid exchange rate and even with the ATM fee, this is cheaper than any other currency exchange method out there. **5. Branch withdrawal fee**: Dealing with a person face-to-face can sometimes cost you money ($5 – $10). This one is for those folks who like personalized service and are willing to pay for it. For most of us, we can avoid this by doing most of our banking online or via the app. If you do want the face-to-face interaction choose a bank account that provides a certain number of these interactions for free. I found credit unions and community banks to be the best in this department because of their lower overheads and more customer focused business model. **6. Overdraft or Insufficient funds fee**: The fee you pay when the balance in your everyday transaction account goes below $0. Example: Your phone provider debits $150 for your monthly bill but you only have $100 in your bank account at the time. You may be charged anywhere from $30 to $35 in overdraft fees by your bank (many major banks have lowered or capped these fees in recent years, so it’s worth checking your bank’s current policy). I have been hit by this one – so make sure you keep a buffer in your transaction account so that you have sufficient funds to cover these situations. > Another way to avoid overdrafts and late fees is to sign up for free low balance alerts. Thanks to online and mobile banking you can sign up for alerts when your bank balance falls below a certain threshold. Finally, if you call the bank, they may sometimes waive overdraft fees if you have a good record with them or this was your first infraction. This method however is only likely to work once. **7. Exceeding your credit limit fee**: A fee may be debited from your credit card account every time you exceed your credit limit during a statement cycle. Federal rules put limits on how and when credit card issuers can charge these fees, but it’s still one to watch. At worst case increase your credit limit or get multiple credit cards so that your total available credit is higher – but higher credit has its own inherent dangers. I am sure there are many other fees out there, but these are the most common ones consumers face. It would be interesting to hear of any adverse fee experiences you have had and/or lessons learnt by leaving a comment on this post. Financial institutions must provide information to their customers on these fees and charges. Under the Truth in Savings Act, banks are required to notify customers of any change in terms within 30 days. If you are getting charged for something you did not know about, make sure you raise this with your bank and ask for a rebate on any unexpected fees. For more on this, see my guide on [Best High-Yield Savings Account Rates](https://savingtoinvest.com/high-yield-savings/) and [finding cheaper auto insurance](https://savingtoinvest.com/cheaper-auto-insurance/) — another recurring bill worth auditing the same way you audit bank fees. *[Subscribe here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get the latest money-saving articles delivered to your inbox.* **Categories:** Personal Finance and Money **Tags:** ATM, banking, fees, overdraft --- ### [Required Minimum Distributions (RMDs): 2026 Age Rules, Deadlines, and Penalties](https://savingtoinvest.com/required-minimum-distributions-rmd-rules-and-deadlines/) **Published:** March 28, 2020 **Author:** Andy **Content:** ### Key Takeaways - Your RMD age is 73 if you were born 1951-1959, and 75 if you were born in 1960 or later. - Miss an RMD and the penalty is a 25% excise tax on the amount you should have withdrawn - dropped to 10% if you fix it within two years. - Roth 401(k) and Roth 403(b) accounts no longer require RMDs, effective January 1, 2024 (SECURE 2.0). Roth IRAs never did. - Your first RMD can be delayed until April 1 of the following year; every RMD after that is due by December 31. - Inherited most non-spouse IRAs after 2019 fall under the 10-year rule - and if the original owner was already taking RMDs, the IRS now requires annual withdrawals during those 10 years too, not just a lump sum at the end. - The 2026 Qualified Charitable Distribution (QCD) limit is $111,000 - QCDs count toward your RMD and don't show up as taxable income. If you turn 73 or 75 this year (depending on when you were born), the IRS wants you to start pulling money out of your traditional retirement accounts — whether you need it or not. Skip it, and the penalty is steep: 25% of whatever you should have withdrawn. This is one of the more confusing corners of retirement planning, mostly because the rules have changed twice in the last few years. Here’s where things actually stand for 2026. Covered in this Article: [Toggle](#) - [What Age Do RMDs Start?](#What_Age_Do_RMDs_Start) - [How Much Do You Have to Withdraw?](#How_Much_Do_You_Have_to_Withdraw) - [Which Accounts Need an RMD — and Which Don’t](#Which_Accounts_Need_an_RMD_%E2%80%94_and_Which_Dont) - [Multiple Accounts: Aggregate or Separate?](#Multiple_Accounts_Aggregate_or_Separate) - [Inherited Accounts: The 10-Year Rule](#Inherited_Accounts_The_10-Year_Rule) - [The Penalty for Missing an RMD](#The_Penalty_for_Missing_an_RMD) - [Using a QCD to Cover Your RMD](#Using_a_QCD_to_Cover_Your_RMD) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027](#Looking_Ahead_2027) ## What Age Do RMDs Start? The RMD age depends entirely on your birth year, thanks to SECURE 2.0’s phased increase. Birth YearRMD Age1950 or earlier721951–1959731960 or later75 If you were born in 1959, note that there’s some ambiguity in how the IRS transition rule applies to your exact cohort — the safest move is to confirm your specific RMD age with your plan administrator or a tax professional rather than assume. Your very first RMD has a grace period: you can wait until **April 1 of the year after** you hit your RMD age. Every RMD after that — including the second one, if you delayed the first — is due by **December 31**. **Robert**, born in 1953, turns 73 in 2026. He can take his first RMD anytime in 2026, or wait until April 1, 2027. If he waits, he’ll owe two RMDs in 2027 (the delayed 2026 one plus the regular 2027 one) — which can push him into a higher tax bracket that year. Most people are better off just taking the first RMD in the year they turn 73. ## How Much Do You Have to Withdraw? Your RMD is calculated by dividing your account balance as of December 31 of the prior year by a life-expectancy factor from the IRS Uniform Lifetime Table. **Diane**, 76, had $450,000 in her traditional IRA at the end of last year. Her IRS life-expectancy factor at 76 is roughly 23.7. Her RMD for this year is $450,000 ÷ 23.7 ≈ **$18,987**. That factor gets smaller every year, which means a larger percentage of your balance comes out annually as you age — by design, since the table assumes you’re drawing down the account over your remaining lifetime. > *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) and I’ll flag it if the IRS updates the life-expectancy tables or RMD age again.* ## Which Accounts Need an RMD — and Which Don’t Traditional IRAs, traditional 401(k)s, 403(b)s, and most other employer plans all require RMDs once you hit your RMD age. The big exception, and a genuinely good piece of news from SECURE 2.0, is Roth accounts. **Roth 401(k) and Roth 403(b) plans stopped requiring RMDs on January 1, 2024.** Before that, oddly, you had to take RMDs from a Roth 401(k) even though the withdrawals were tax-free — a quirk that tripped up a lot of retirees. Roth IRAs have never required RMDs for the original owner. One more wrinkle: if you’re still working past your RMD age and don’t own more than 5% of the company, you may be able to delay 401(k) RMDs from your **current employer’s plan only** until you actually retire. That exception doesn’t extend to IRAs or old 401(k)s from previous employers — those still require RMDs on schedule regardless of your employment status. ## Multiple Accounts: Aggregate or Separate? This trips people up constantly. **IRA RMDs can be aggregated** — calculate the RMD for each IRA separately, add them up, then withdraw the total from any one IRA (or split however you like) as long as the total is satisfied. **401(k) RMDs cannot be aggregated across different employer plans.** If you have two old 401(k)s from different employers, you must calculate and withdraw the RMD from each one individually. (403(b) accounts get their own aggregation rule, similar to IRAs, but only among other 403(b)s.) If juggling RMDs across several old 401(k)s sounds like a headache, [rolling them into a single IRA](https://savingtoinvest.com/rollover-old-or-multiple-401ks-into-an-ira/) is one of the more common reasons people consolidate — it turns multiple separate RMD calculations into one. ## Inherited Accounts: The 10-Year Rule If you inherited an IRA or 401(k) from someone who died after 2019, the old “stretch IRA” strategy — spreading withdrawals over your own life expectancy — is mostly gone for non-spouse beneficiaries. Most non-spouse beneficiaries now fall under the **10-year rule**: the entire account must be emptied by December 31 of the 10th year after the owner’s death. For years, it wasn’t clear whether you also had to take annual withdrawals during those 10 years or could just wait and empty it all in year 10. The IRS has now settled that: **if the original owner had already started taking RMDs before they died, their beneficiary must take annual RMDs during the 10-year window too** — not just a lump sum at the end. If the owner hadn’t started RMDs yet, the beneficiary can wait and take it all in year 10 if they prefer. Spouse beneficiaries still get more flexibility — they can treat an inherited IRA as their own, roll it into their own IRA, or use their own life expectancy, generally the more favorable path. ## The Penalty for Missing an RMD SECURE 2.0 significantly softened this. The excise tax for a missed or shortfall RMD is now **25%** of the amount you should have withdrawn but didn’t — down from the brutal 50% penalty that applied for decades. It gets better: if you correct the mistake — take the missed RMD — within **two years** of when it was due, the penalty drops further to **10%**. File Form 5329 to report and request the reduced penalty, and it’s worth requesting a full waiver too if you have a reasonable explanation (a common one: your custodian miscalculated it). ## Using a QCD to Cover Your RMD A Qualified Charitable Distribution lets you send money directly from your IRA to a qualified charity, and that amount counts toward your RMD without ever showing up as taxable income. For 2026, the QCD limit is **$111,000**. **Karen**, 74, has a $20,000 RMD this year and doesn’t need the cash. She has her IRA custodian send $20,000 directly to her church and two other charities. Her RMD is satisfied, and none of that $20,000 appears as income on her tax return — a meaningfully better outcome than withdrawing it, paying tax, and then donating and claiming a deduction. QCDs only work from IRAs, not 401(k)s, and the funds must go directly from the custodian to the charity — money that touches your hands first doesn’t qualify. ## Common Issues to Watch Out For I hear about the same handful of RMD mistakes every year, so here’s what to watch for. **Assuming your custodian calculated it correctly.** Most do, but it’s your responsibility, not theirs, if the number is wrong. Double-check the math, especially in the year you turn your RMD age or the year after you inherit an account. **Forgetting an old 401(k) from a previous job.** These don’t show up on your radar the way your current accounts do, but the RMD requirement (and the 25% penalty) applies just the same. **Not realizing the delayed first RMD creates a two-RMD tax year.** Waiting until April 1 to take your first RMD feels like a smart delay, but it stacks two distributions into one calendar year and can bump you into a higher bracket. **Missing the inherited-account annual RMD requirement.** If you inherited an account from someone who was already taking RMDs, don’t assume you can wait until year 10 to take anything out — you may owe annual RMDs the whole time. **Not using a QCD when you’re charitably inclined anyway.** If you already give to charity and don’t need your RMD cash, routing it as a QCD is close to free money from a tax standpoint. ## Looking Ahead: 2027 A few things are worth watching. The QCD limit is indexed for inflation each year, so expect a modest increase for 2027 announced alongside other retirement figures in October or November 2026 — see our [401(k) and IRA contribution limits guide](https://savingtoinvest.com/401k-ira-and-roth-ira-contribution-and-income-limits/) for how these figures typically move. Plan sponsors also have until **December 31, 2026** to formally adopt several SECURE 2.0 provisions into their plan documents, including the Roth RMD elimination and the higher automatic-rollover cash-out threshold. Most plans have already operated as if these changes were in effect since 2024, but the paperwork deadline is this year — worth confirming with your plan administrator if anything seems inconsistent with what’s described here. I’ll update this page as the IRS finalizes any further guidance on the inherited-account 10-year rule, which has been one of the more heavily revised areas of RMD policy since SECURE 2.0 passed. For more on this, see my guide on [401(k) and IRA Early Withdrawal Penalty: The 10% Rule and How to Avoid It](https://savingtoinvest.com/how-to-withdraw-money-early-from-your-401k-or-ira-without-paying-a-penalty/), [Cashing Out My 401(k) — Loans vs. Hardship Withdrawals](https://savingtoinvest.com/401k-cash-out-for-loans-vs-hardship/), and [2026-2027 Key Retirement Ages for 401(k), IRA, and Social Security](https://savingtoinvest.com/retirement-ages-and-eligilbility-rules-for-receiving-401k-ira-and-social-security-beneifts/). Frequently Asked Questions QWhat age do RMDs start in 2026? AAge 73 if you were born between 1951 and 1959, and age 75 if you were born in 1960 or later. If you turned 72 before 2023, you were already required to start under the prior rule. QDo Roth IRAs and Roth 401(k)s require RMDs? ARoth IRAs have never required RMDs for the original owner. Roth 401(k)s and Roth 403(b)s stopped requiring RMDs starting January 1, 2024, under SECURE 2.0. QWhat happens if I miss my RMD? AYou owe a 25% excise tax on the amount you should have withdrawn but didn't. That drops to 10% if you correct the shortfall within two years of the deadline. File Form 5329 to report it. QCan I combine RMDs from multiple accounts? AYou can aggregate and satisfy IRA RMDs from any one IRA (or a combination). You cannot aggregate 401(k) RMDs across different employer plans - each one must be satisfied separately. QHow does the 10-year rule work for inherited IRAs? AMost non-spouse beneficiaries who inherited after 2019 must empty the account within 10 years. If the original owner had already started RMDs, the beneficiary must also take annual RMDs during those 10 years, not just a lump sum at the end. QCan I use my RMD to give to charity tax-free? AYes, through a Qualified Charitable Distribution (QCD). Up to $111,000 in 2026 can go directly from your IRA to a qualified charity, counting toward your RMD without being taxed as income. QDo I still have to take RMDs if I'm still working? AYou may be able to delay RMDs from your current employer's 401(k) if you're still employed there and own 5% or less of the company. This exception doesn't apply to IRAs or old 401(k)s from previous employers. **Categories:** Taxes and Retirement --- ### [401(k) and IRA Early Withdrawal Penalty: The 10% Rule and How to Avoid It](https://savingtoinvest.com/how-to-withdraw-money-early-from-your-401k-or-ira-without-paying-a-penalty/) **Published:** September 9, 2010 **Author:** Andy **Content:** ### Key Takeaways - Withdraw from a traditional 401(k) or IRA before age 59½ and you generally owe a 10% penalty on top of regular income tax - but there are more than a dozen legal exceptions. - SECURE 2.0 added several new penalty-free options since 2024, including a $1,000/year emergency withdrawal, a domestic abuse victim exception (up to $10,000 or 50% of the balance), and a terminal illness exception. - Roth IRA withdrawals follow strict ordering rules: your own contributions come out first (always tax- and penalty-free), then conversions, then earnings - each layer taxed differently. - Exceptions waive the 10% penalty, but the withdrawal is still usually subject to regular income tax on the taxable portion. - The 'rule of 55' lets you tap a 401(k) penalty-free if you leave that job in the year you turn 55 or later - but only for that specific employer's plan, and it disappears if you roll the money into an IRA. Pull money out of a traditional 401(k) or IRA before you turn 59½, and the IRS adds a 10% penalty on top of whatever income tax you already owe. That’s the headline rule everyone knows. What fewer people know is just how many exceptions exist. Some have been on the books for decades; a few were added as recently as 2024 under SECURE 2.0. Here’s the full list, plus how the rules differ for Roth accounts. Covered in this Article: [Toggle](#) - [The Baseline Rule](#The_Baseline_Rule) - [Exceptions That Apply to Both 401(k)s and IRAs](#Exceptions_That_Apply_to_Both_401ks_and_IRAs) - [Exceptions That Only Apply to IRAs](#Exceptions_That_Only_Apply_to_IRAs) - [Exceptions That Only Apply to 401(k)s](#Exceptions_That_Only_Apply_to_401ks) - [Roth IRA Ordering Rules: Contributions, Conversions, Earnings](#Roth_IRA_Ordering_Rules_Contributions_Conversions_Earnings) - [Roth 401(k)s Work Differently Than Roth IRAs](#Roth_401ks_Work_Differently_Than_Roth_IRAs) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## The Baseline Rule Take a taxable distribution from a traditional 401(k), traditional IRA, or similar pre-tax account before age 59½, and two things happen: the withdrawal counts as ordinary income, and you owe an additional 10% penalty on top. **James**, 45, withdraws $20,000 from his traditional IRA to cover a home repair, with no exception available. He owes income tax on the full $20,000 at his regular rate, plus a $2,000 penalty (10% of $20,000). If he’s in the 22% bracket, that withdrawal costs him roughly $6,400 total — nearly a third of what he took out. ## Exceptions That Apply to Both 401(k)s and IRAs These exceptions waive the 10% penalty regardless of which type of account you’re pulling from. - **Total and permanent disability** — no penalty if you’re disabled and unable to work. - **Substantially equal periodic payments (SEPP / Section 72(t))** — a series of calculated, equal withdrawals taken over your life expectancy. Start one and you’re locked in for at least 5 years or until 59½, whichever is longer. - **Unreimbursed medical expenses** exceeding 7.5% of your adjusted gross income for the year. - **Birth or adoption expenses** — up to $5,000 per birth or adoption, penalty-free. - **Terminal illness** — added by SECURE 2.0, for a condition a physician certifies is reasonably expected to result in death within 84 months. - **Domestic abuse victims** — up to the lesser of $10,000 (indexed for inflation) or 50% of the account balance. - **Emergency personal expense** — up to $1,000 per calendar year, self-certified for “unforeseeable or immediate” financial need. You generally can’t take a second one until you’ve repaid the first or three years have passed. - **Federally declared disaster distributions** — up to $22,000, with the option to spread the resulting income over three tax years. - **IRS levy** — if the IRS seizes the account to satisfy a tax debt. - **Qualified reservist distributions** — for reservists called to active duty for 180+ days. ## Exceptions That Only Apply to IRAs A few exceptions are IRA-only and don’t extend to 401(k)s. - **First-time homebuyer** — up to $10,000 lifetime, for a first home for yourself, your spouse, or certain family members. - **Qualified higher education expenses** — tuition, fees, books, and required supplies for yourself, your spouse, children, or grandchildren. - **Health insurance premiums while unemployed** — if you’ve received unemployment compensation for 12 consecutive weeks. ## Exceptions That Only Apply to 401(k)s **The “rule of 55.”** If you leave your job — whether you quit, get laid off, or retire — in the calendar year you turn 55 or later, you can withdraw from **that employer’s 401(k)** penalty-free. Public safety employees (police, firefighters, EMTs) get an earlier version of this at age 50. The catch: this only applies to the plan from the job you just left, and it evaporates if you roll that 401(k) into an IRA. **Linda**, 56, leaves her job and wants penalty-free access to her old 401(k) under the rule of 55. If she rolls it into an IRA first — a common move for lower fees or more investment choice — she loses the exception entirely, since IRAs don’t get the rule-of-55 carve-out. See our [401(k) rollover guide](https://savingtoinvest.com/rollover-old-or-multiple-401ks-into-an-ira/) for the full tradeoff before consolidating. **Qualified Domestic Relations Order (QDRO).** If a divorce decree splits your 401(k) with a former spouse, the transferred portion isn’t subject to the 10% penalty when withdrawn by the receiving spouse. ## Roth IRA Ordering Rules: Contributions, Conversions, Earnings Roth IRAs work differently because you’ve already paid tax on your contributions. The IRS uses a strict **ordering rule** for every Roth IRA withdrawal, pulling money out in this sequence: **1. Your contributions come out first — always tax-free and penalty-free**, no matter your age or how long the account has been open. You can withdraw the exact dollar amount you’ve contributed over the years at any time with zero tax consequence. **2. Converted amounts come out next**, tracked separately by the year of each conversion. These are tax-free (you already paid tax when you converted), but each conversion has its own 5-year clock — withdraw a converted amount within 5 years of that specific conversion, and you’re under 59½, and the 10% penalty applies to that portion (unless another exception covers it). **3. Earnings come out last**, and this is the portion that’s both taxable and subject to the 10% penalty unless you meet the requirements for a “qualified distribution” — the account has been open 5+ years **and** you’re 59½ or older, disabled, using the first-time homebuyer exception, or deceased (paid to a beneficiary). **Priya**, 40, opened her Roth IRA eight years ago. She’s contributed $35,000 total and the account has grown to $52,000. She withdraws $35,000 to cover an emergency — since that’s exactly her contribution total, it’s entirely tax-free and penalty-free, even though she’s well under 59½. If she’d withdrawn $40,000 instead, the extra $5,000 would come from earnings and would be both taxable and penalized, since she doesn’t meet the qualified-distribution requirements yet. ## Roth 401(k)s Work Differently Than Roth IRAs This is a common point of confusion. A **Roth 401(k)** doesn’t get the same favorable contributions-first ordering as a Roth IRA. Instead, every distribution is **pro-rata** — a proportional mix of your contributions and earnings, based on the account’s overall ratio of the two. That means you can’t isolate your contributions the way you can in a Roth IRA. If your Roth 401(k) is 70% contributions and 30% earnings, every withdrawal (before you meet the qualified-distribution requirements) carries that same 70/30 split, and the earnings portion is taxable and potentially penalized. > *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) and I’ll update this page if Congress or the IRS adds new penalty exceptions.* ## Common Issues to Watch Out For A few mistakes come up again and again with early withdrawals. **Assuming an exception waives income tax too.** It doesn’t, in almost every case. The exceptions listed above waive the 10% penalty; the withdrawal (aside from Roth contributions) is usually still taxable income. **Rolling a 401(k) into an IRA before checking the rule of 55.** If you’re 55+ and just left a job, check whether you’ll need penalty-free access to that money before you consolidate it into an IRA — the rollover permanently forfeits that option. **Mixing up Roth IRA and Roth 401(k) withdrawal rules.** They are not the same. Roth IRA withdrawals are contributions-first; Roth 401(k) withdrawals are pro-rata. Assuming the IRA rule applies to your Roth 401(k) can lead to an unpleasant tax surprise. **Not self-certifying correctly for the newer SECURE 2.0 exceptions.** The emergency withdrawal, domestic abuse, and terminal illness exceptions generally rely on self-certification rather than pre-approval — but you need to keep documentation in case the IRS asks later. **Forgetting the SEPP 5-year/age-59½ lock-in.** Starting a 72(t) payment plan commits you to a rigid schedule for years. Modify or stop it early and the IRS can retroactively apply the 10% penalty to everything you’ve already withdrawn under the plan. For more on this, see my guide on [Required Minimum Distributions (RMDs): 2026 Age Rules, Deadlines, and Penalties](https://savingtoinvest.com/required-minimum-distributions-rmd-rules-and-deadlines/), [Cashing Out My 401(k) — Loans vs. Hardship Withdrawals](https://savingtoinvest.com/401k-cash-out-for-loans-vs-hardship/), [2026-2027 401(k), IRA, and Roth IRA Contribution and Income Limits](https://savingtoinvest.com/401k-ira-and-roth-ira-contribution-and-income-limits/), and [Which Type of IRA is Best for Me? Roth IRA or Traditional IRA](https://savingtoinvest.com/which-type-of-ira-is-best-for-me-roth-ira-or-traditional-ira-and-how-to-decide/). Frequently Asked Questions QWhat is the penalty for withdrawing from a 401(k) or IRA early? AA 10% penalty on the taxable amount withdrawn before age 59½, in addition to regular income tax on that amount, unless an exception applies. QWhat are the newest exceptions to the early withdrawal penalty? ASECURE 2.0 added an emergency personal expense withdrawal (up to $1,000/year), a domestic abuse victim exception (up to $10,000 or 50% of the balance), and a terminal illness exception, all in effect since 2024. QDoes the rule of 55 apply to IRAs? ANo. The rule of 55 only applies to a 401(k) from the employer you left in the year you turned 55 or later. It does not apply to IRAs, and rolling that 401(k) into an IRA eliminates the exception. QCan I withdraw my Roth IRA contributions without penalty? AYes. Roth IRA contributions can be withdrawn at any time, at any age, tax-free and penalty-free, because you already paid tax on that money. Earnings are a separate matter with their own rules. QIs a Roth 401(k) withdrawal taxed the same way as a Roth IRA withdrawal? ANo. Roth 401(k) withdrawals are pro-rata, meaning each withdrawal includes a proportional mix of contributions and earnings. Roth IRA withdrawals are contributions-first, letting you access your contributions tax- and penalty-free before touching earnings. QDo early withdrawal penalty exceptions also waive income tax? AGenerally no. These exceptions waive only the 10% penalty. The withdrawal (other than Roth contributions) is still subject to ordinary income tax in almost every case. QHow much can I withdraw penalty-free for a first home purchase? AUp to $10,000 lifetime from an IRA for a first-time home purchase. This exception does not apply to 401(k) accounts. **Categories:** Taxes and Retirement **Tags:** early Withdrawal, IRA, IRS, penalty, Roth IRA --- ### [Where Is My Business Tax Refund in 2026? Current IRS Processing Times and How to Check Status](https://savingtoinvest.com/where-is-my-business-tax-refund/) **Published:** November 14, 2022 **Author:** Andy **Content:** ### Key Takeaways - There's still no 'Where's My Refund'-style tool for business tax returns - the IRS's official position hasn't changed since this page was first published, and business owners need to call to get status updates. - As of mid-July 2026, the IRS is processing original paper Form 941 returns received in June 2026 and amended Forms 941-X (excluding Employee Retention Credit claims) received in February 2026 - check the IRS's live processing-status page for the current month before you call. - ERC-related 941-X claims are handled separately from other amended returns and can take substantially longer - months, not weeks - due to ongoing manual fraud review. - The dedicated Business and Specialty Tax Line is 800-829-4933 (TTY: 800-829-4059), open Monday-Friday, 7 a.m. to 7 p.m. local time; callers outside the U.S. use +1 267-941-1000. - Most business types - sole proprietorships, partnerships, LLCs, and S corporations - are pass-through entities, so it's often the owner's personal return, not the business return, that determines when a refund actually shows up. Business owners still don’t get a “Where’s My Refund”-style tracker the way individual filers do. If you’re waiting on a business tax refund in 2026, the IRS’s own guidance is unchanged from prior years: call the Business and Specialty Tax Line at 800-829-4933 (or +1 267-941-1000 from outside the U.S.) for status information. That said, there’s now a faster way to sanity-check things before you pick up the phone: the IRS publishes a running [processing status page](https://www.irs.gov/help/processing-status-for-tax-forms) that shows which month’s paper filings it’s currently working through, updated regularly. It’s not a status lookup for your specific return, but it tells you whether a delay is normal right now or worth a call. Covered in this Article: [Toggle](#) - [Current IRS Processing Times (Updated as of Mid-July 2026)](#Current_IRS_Processing_Times_Updated_as_of_Mid-July_2026) - [The ERC Backlog Is Its Own Situation](#The_ERC_Backlog_Is_Its_Own_Situation) - [Why Most Business Owners Rarely Need to Call at All](#Why_Most_Business_Owners_Rarely_Need_to_Call_at_All) - [Business Tax Account: A Partial Workaround](#Business_Tax_Account_A_Partial_Workaround) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## Current IRS Processing Times (Updated as of Mid-July 2026) As of the IRS’s most recent update, here’s where things stand for the forms business owners deal with most: FormTypeCurrently processing returns received inForm 941 (Employer’s Quarterly Federal Tax Return)OriginalJune 2026Form 941-XAmended (excluding ERC)February 2026Form 1120 series (corporate income tax)OriginalJuly 2026Form 1120 seriesAmendedFebruary 2026Form 1041 (estates and trusts)Original and amendedApril 2026Business general correspondence—February 2026 These figures change regularly and this table will go stale — [check the IRS page directly](https://www.irs.gov/help/processing-status-for-tax-forms) for the current month before assuming your return is delayed. As a rule of thumb, if your paper Form 941 was filed more recently than the “currently processing” month shown, it’s not stuck — it just hasn’t been reached yet. ## The ERC Backlog Is Its Own Situation If your Form 941-X involves an Employee Retention Credit (ERC) claim, don’t expect it to move at the same pace as a routine correction. The IRS continues manual review of ERC claims specifically because of the fraud and improper-payment volume tied to the program, and processing for those claims can run anywhere from several months to over a year. If you’re in that bucket, calling repeatedly won’t speed things up — the IRS representative you reach generally can’t do anything beyond confirming your claim is in the queue. *Things shift often on this front. [Subscribe here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) and I’ll update this page as IRS processing times change.* ## Why Most Business Owners Rarely Need to Call at All The actual incidence of business owners needing to call the IRS about a refund is lower than you’d guess, because most IRS-classified business types — sole proprietorships, partnerships, LLCs, and S corporations — are **pass-through entities**. These entities’ profits pass through to the owners and get taxed on the owner’s personal return, not the business return. If Priya runs her consulting business as an S corp that nets $80,000 in profit, that $80,000 (minus allowable deductions) shows up as taxable income on her personal Form 1040 — and any related refund tracking happens through the individual “Where’s My Refund” tool, not a business one. Business returns for pass-through entities are still required, since that’s how the IRS verifies the income and deductions that flow through, but there’s typically no separate “business refund” to track. C corporations are the exception. As a separate legal entity from its owners, a C corp pays federal income tax directly at the corporate level and can have its own refund pending. Large companies with dedicated in-house tax teams and IRS points of contact rarely rely on the general refund-status process — but a smaller C corp without that infrastructure is exactly the situation where the “just call” guidance actually applies. ## Business Tax Account: A Partial Workaround One thing has changed since this page was last updated: many businesses can now check payment history and account balance directly through the IRS’s [Business Tax Account](https://www.irs.gov/businesses/business-tax-account) tool, without calling. It’s not a refund tracker, but if you want to confirm a payment posted or see your balance by year, it’s faster than the phone line. Not every entity type qualifies yet — see our [full breakdown of who can register for Business Tax Account in 2026](https://savingtoinvest.com/business-tax-account-transcripts-now-available-online/) for the current eligibility rules by entity type. ## Looking Ahead: 2027 Outlook The IRS has been narrowing its paper-processing backlog steadily, helped by expanded e-filing requirements and Business Tax Account’s self-service features, though that trend depends heavily on IRS staffing and funding levels, which have swung significantly the past few budget cycles. I wouldn’t expect a dedicated “Where’s My Business Refund” tool to launch anytime soon — the IRS hasn’t signaled plans for one — but I’ll keep watching the processing-status page for anything that changes. Official refund-cycle updates, when they come, are typically announced during filing season (January–April). ## Common Issues to Watch Out For I get a lot of the same questions from business owners chasing a refund, so a few things worth flagging directly. **Calling before the return has even been “received” in IRS systems.** Paper returns can take weeks just to enter the processing queue. Check the [processing status page](https://www.irs.gov/help/processing-status-for-tax-forms) for the current month before assuming something’s wrong. **Confusing personal and business refund tracking.** If your business is a pass-through entity, your refund (if any) usually flows through your personal return and the individual [Where’s My Refund tool](https://savingtoinvest.com/wmr-and-irs2go-status-differences-return-received-accepted-or-under-review-and-refund-approved-versus-refund-sent/) — not a business-specific process. **Assuming an ERC claim will move at normal speed.** It won’t. Budget for months of wait time, not weeks, and don’t expect phone calls to accelerate manual fraud review. **Not having your EIN and exact return details ready when you call.** The Business and Specialty Tax Line will ask for identifying information before discussing any account details — have your EIN, entity name, and filing details on hand. I’ve also written more about [Why Is It Taking So Long to Get My Tax Refund?](https://savingtoinvest.com/why-is-it-taking-so-long-to-get-my-tax-refund/), [2026–2027 Federal IRS Tax Brackets and Rates](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/), and [Quarterly Estimated Taxes: What Freelancers Actually Need to Know](https://savingtoinvest.com/quarterly-estimated-taxes-this-year-what-freelancers-actually-need-to-know/). Frequently Asked Questions QIs there a 'Where's My Refund' tool for business tax returns? ANo. The IRS doesn't offer a status-tracking tool for business refunds the way it does for individual returns. Business owners generally need to call the Business and Specialty Tax Line at 800-829-4933 for status updates. QHow long is the IRS currently taking to process Form 941? AAs of the IRS's most recent processing-status update, original paper Form 941 returns received in June 2026 were being processed, and amended Forms 941-X (excluding ERC claims) from February 2026 were being worked. These dates shift regularly - check the IRS processing-status page for the current figures. QWhy is my Employee Retention Credit (ERC) claim taking so long? AERC claims go through additional manual fraud review separate from standard 941-X processing, which can push wait times to several months or over a year. This is a deliberate IRS policy given the volume of improper ERC claims identified in recent years. QDo I need to call the IRS if my business is an S corp or partnership? AUsually not for refund purposes. Most pass-through entities don't generate a separate business-level refund - profits flow to the owner's personal return, and any refund tracking happens through the individual Where's My Refund tool instead. QWhat's the IRS phone number for business tax questions? A800-829-4933 for the Business and Specialty Tax Line (TTY: 800-829-4059), available Monday through Friday, 7 a.m. to 7 p.m. local time. From outside the U.S., call +1 267-941-1000. **Categories:** Taxes and Retirement --- ### [My Tipping Philosophy for 2026: What to Tip After the Post-COVID Tipping Surge](https://savingtoinvest.com/tipping-philosophies/) **Published:** May 18, 2008 **Author:** Andy **Content:** ### Key Takeaways - Two-thirds of Americans now say they feel 'tipping fatigue,' up from 60% last year and 53% in 2023 - digital tip-screen prompts are the biggest driver. - My personal tipping scale hasn't changed since I first wrote this: 15% for expected service, 20-25% for great service, $0 for genuinely bad service, and 10% on delivery and to-go orders. - The federal 'No Tax on Tips' deduction (part of the One Big Beautiful Bill Act) doesn't mean you should tip less - it's a temporary, capped tax break for the worker, not a signal to shrink your tip. - Tipped workers can legally be paid as little as $2.13 an hour in cash wages under federal law, with tips required to close the gap up to the $7.25 minimum wage - tipping still funds real income, not just a bonus. - A handful of states (California, Minnesota, Montana, Nevada, Oregon, Washington, Alaska) require the full state minimum wage before tips, which changes the math on how essential your tip actually is. Are you a generous tipper or do you give the bare minimum? Do you tip extra for great service, or nothing at all for bad service? Do you tip the same for a to-go order as you would for a table you sat at for two hours? I first wrote about my tipping philosophy back in 2008, and the honest answer is that the question has only gotten more complicated since then — not less. Between digital tip screens flipping around to face you at the counter, tip suggestions creeping from 15% up to 20% as the “low” option, and a new federal tax deduction aimed squarely at tipped workers, 2026 is a genuinely strange time to figure out what you “should” tip. Covered in this Article: [Toggle](#) - [How Tipping Culture Has Changed Since the Pandemic](#How_Tipping_Culture_Has_Changed_Since_the_Pandemic) - [My Tipping Philosophy](#My_Tipping_Philosophy) - [Does the No Tax on Tips Deduction Mean You Should Tip Less?](#Does_the_No_Tax_on_Tips_Deduction_Mean_You_Should_Tip_Less) - [How Minimum Wage Rules Affect What You’re Really Tipping For](#How_Minimum_Wage_Rules_Affect_What_Youre_Really_Tipping_For) - [Common Situations That Trip People Up](#Common_Situations_That_Trip_People_Up) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) ## How Tipping Culture Has Changed Since the Pandemic Tipping norms shifted hard during COVID, when tipping generously felt like one of the few ways to support service workers directly. That goodwill has curdled into something researchers are now calling “tipping fatigue.” Two-thirds of Americans say they’re experiencing it, up from 60% a year ago and 53% back in 2023, and nearly 9 in 10 believe tipping culture has “gotten out of control.” The biggest culprit is the digital tip screen. Consumers are now prompted to tip an average of ten times a month — at coffee counters, self-checkout kiosks, and pickup windows where no table service happened at all — and about three in four say they’ve noticed the suggested minimum tip creeping up, from 10% to 15% in many cases. Nearly 60% still feel pressured to tip when a screen is staring at them, though that’s down from 66% just a year ago as more people start hitting “no tip” or a custom amount instead of the pre-set buttons. The result: average tip percentages at restaurants, cafes, and bars have actually dipped below 15% for the first time in years, according to payment-processor data, even as suggested tip percentages on the screens keep climbing. People are pushing back with their thumbs. ## My Tipping Philosophy My own approach hasn’t really changed since I first wrote this post, and I think that’s the point — a philosophy shouldn’t swing with whatever a POS terminal suggests. Having lived a large part of my life outside the U.S., where the sticker price already includes service, I still find the American system unusual. But I also think American service is, on average, better than what you get in Europe or Australia, and tipping is a real part of why. Here’s my scale: 1. **Meets expectations:** around 15% of the total bill. 2. **Excellent, above-and-beyond service:** 20-25% of the pre-tax bill. 3. **Genuinely bad service:** $0. If it’s added automatically as an “auto-gratuity,” I ask for it to be removed. 4. **Delivery or to-go orders:** 10%, calculated on the pre-tax, pre-fee amount — not on top of the delivery app’s own service charges. I don’t tip on a flat, no-questions-asked basis, and I don’t think that’s harsh. A server who’s attentive and a server who’s ignored my table for 20 minutes shouldn’t get the same reward. Tipping on a sliding scale is the one piece of leverage a customer actually has over service quality. ## Does the No Tax on Tips Deduction Mean You Should Tip Less? Since the One Big Beautiful Bill Act created a federal deduction for tip income, I’ve had readers ask a version of the same question: if the server’s tips are now more tax-advantaged, does that mean I can tip less? No — and here’s the actual math behind why. The deduction lets eligible tipped workers deduct up to $25,000 in reported tips from their federal taxable income each year, through the 2028 tax year, and it phases out for workers with modified adjusted gross income above $150,000 single or $300,000 joint. It doesn’t touch Social Security or Medicare payroll taxes, and it doesn’t touch state or local income tax in most states. It’s also temporary — scheduled to expire after 2028 unless Congress extends it. For the full breakdown of who qualifies and how much it’s actually worth, see my [complete 2026-2027 No Tax on Tips guide](https://savingtoinvest.com/no-tax-on-tips-2026-your-complete-guide-to-saving-thousands-with-real-examples/). More importantly, tipping was never really a tax-optimization exercise for the customer. It’s compensation for work performed in real time, and the tax treatment of that income on the worker’s end doesn’t change what the service was worth. Cutting your tip because a server’s tax bill went down is like cutting a plumber’s invoice because you assume they’ll get a refund next April — it isn’t your line item to adjust. ## How Minimum Wage Rules Affect What You’re Really Tipping For Part of why I don’t treat tipping as optional in the U.S. comes down to how tipped wages actually work. Federal law allows employers to pay tipped workers a direct cash wage as low as $2.13 an hour, using a “tip credit” to make up the rest of the standard $7.25 federal minimum wage. If tips don’t cover the gap in a given week, the employer is legally required to make up the difference — but in practice, the tip is doing real wage-replacement work, not just padding a paycheck. That said, this isn’t uniform everywhere. A growing number of states require tipped employees to be paid the full state minimum wage before tips even factor in, which changes how essential any individual tip is to that worker’s income. I keep a full state-by-state breakdown, including which states still allow the lower tipped minimum wage and which don’t, in my [2026-2027 minimum wage by state guide](https://savingtoinvest.com/federal-and-state-minimum-wage-increases/) — worth a look if you split time between states with very different rules. ## Common Situations That Trip People Up - **Counter service with a flipped screen:** You’re not obligated to hit one of the preset percentages. A $0 or custom tip is a legitimate answer when no real service was provided. - **Delivery apps stacking fees on top of a tip:** Calculate your tip off the food subtotal, not the inflated total after service and delivery fees are added — otherwise you’re effectively tipping on the platform’s markup. - **Auto-gratuity for large parties:** This is a contractual service charge, not a discretionary tip, and restaurants are required to disclose it on the menu. You can still ask for it to be adjusted if service was genuinely poor. - **Tipping on takeout you picked up yourself:** I still tip around 10% here if staff prepared and packaged the order, per the reasoning Washington Post columnist Michelle Singletary [laid out well back in 2022](https://www.washingtonpost.com/business/2022/09/16/tipping-takeout-inflation/) — someone still did real work to get your order ready. - **Feeling guilted by a screen into overtipping:** It’s fine to decline. Roughly 4 in 10 people now choose a custom tip amount instead of the suggested buttons, and that number is growing every year. ## Looking Ahead: 2027 Outlook Expect the backlash to keep building. More states and cities are debating rules that would require businesses to disclose service charges more clearly, and some point-of-sale vendors are already testing “no prompt” checkout flows for counter-service transactions after merchant complaints about tip fatigue driving away customers. On the tax side, the No Tax on Tips deduction is still scheduled to sunset after the 2028 tax year, so expect renewed debate in Congress in 2027 about whether to extend it — which will likely reopen this same “should tipping norms change” conversation all over again. For related reading, see [The A to Z of Good Personal Finance: My Saving and Investing Philosophy](https://savingtoinvest.com/a-to-z-of-good-personal-finance/) and my broader [Master Your Money guide](https://savingtoinvest.com/master-your-money-the-ultimate-personal-income-and-spending-roadmap/) for the full income-and-spending roadmap. Want more posts like this? [Subscribe free for the latest articles](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) and get new guides sent straight to your inbox. Frequently Asked Questions QShould I tip less now that tipped workers get a tax deduction? ANo. The No Tax on Tips deduction is a temporary, capped federal tax break for the worker's income tax bill - it doesn't reduce payroll taxes, doesn't apply in every state, and doesn't change the value of the service you received. Tipping is compensation for work, not a tax-optimization decision for the customer. QDo I have to tip when a digital screen prompts me at a counter? ANo. You're free to select a custom amount, including $0, especially in counter-service settings where no table service was provided. Roughly 4 in 10 consumers now choose a custom tip instead of a preset percentage. QWhat's the standard tip percentage in the U.S. in 2026? AFull-service restaurants generally still expect 15-20%, though average tip percentages across restaurants, cafes, and bars have recently dipped below 15% as tipping fatigue grows. Digital tip screens frequently suggest higher defaults, often starting at 15-20% instead of the older 10-15-20% range. QWhy do restaurants pay servers so little without tips? AFederal law allows a tipped minimum cash wage as low as $2.13 an hour, with tips required to close the gap to the $7.25 federal minimum. Several states, including California, Minnesota, Montana, Nevada, Oregon, and Washington, require the full state minimum wage before tips. QShould I tip on delivery orders and to-go pickup? AYes, at a reduced rate. I tip around 10% on delivery and to-go orders, calculated on the pre-tax food subtotal rather than the inflated total after delivery and service fees are added. QIs it ever okay to leave no tip? AYes, for genuinely bad service. I don't tip for service that's well below par, and if a gratuity is added automatically despite poor service, it's reasonable to ask for it to be removed. **Categories:** Personal Finance and Money **Tags:** Frugal, spending, tipping --- ### [Home Insurance Costs in 2026: Why Rate Hikes Are Finally Slowing — and How to Actually Lower Yours](https://savingtoinvest.com/what-you-can-do-about-the-rising-cost-of-home-insurance/) **Published:** November 7, 2021 **Author:** Andy **Content:** ### Key Takeaways - National average home insurance premiums are running $2,400-$2,900 a year for $300K-$350K in dwelling coverage, with 2026 increases projected around 4% - down sharply from 2025's roughly 12% jump. - Florida (FL) remains by far the most expensive state, with premiums approaching $8,500 a year - more than double the national average. Vermont (VT) is the cheapest at under $1,000. - Property-catastrophe reinsurance rates fell 10-25% at the June 2026 renewals, which is the main reason primary insurer rate hikes are cooling this year. - California's (CA) FAIR Plan is still absorbing billions in wildfire losses, but private carriers - including Travelers, Mercury, and CSAA - are starting to re-enter the market under the state's new Sustainable Insurance Strategy. - Florida's state-backed Citizens Property Insurance is actually cutting rates by about 8.7% this spring as private carriers take on more of its policy load. - Shopping around at renewal, raising your deductible, and asking about mitigation discounts remain the three moves that most reliably lower your premium. Homeowners insurance now averages somewhere between $2,400 and $2,900 a year nationally, depending on which tracker you use and how much dwelling coverage you’re pricing. That’s still going up in 2026, but the increase is projected at roughly 4% — a real slowdown from the 12% jump most homeowners absorbed in 2025. Covered in this Article: [Toggle](#) - [Why Home Insurance Costs More Now Than It Used To](#Why_Home_Insurance_Costs_More_Now_Than_It_Used_To) - [What’s Actually Driving 2026 Rates](#Whats_Actually_Driving_2026_Rates) - [What Coverage Level You Pick Changes Your Price](#What_Coverage_Level_You_Pick_Changes_Your_Price) - [What Actually Moves Your Premium](#What_Actually_Moves_Your_Premium) - [How to Actually Lower Your Home Insurance Cost](#How_to_Actually_Lower_Your_Home_Insurance_Cost) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## Why Home Insurance Costs More Now Than It Used To The short version: rebuilding a home costs more than it used to, and insurers are pricing in more risk of that rebuild happening. Construction material and labor costs climbed hard coming out of the pandemic and haven’t fully retreated. On top of that, climate-related losses — wildfires, hurricanes, severe hail, and flooding — have become a bigger and more geographically spread-out share of insurer payouts. Homes in the highest-risk ZIP codes for climate perils have historically paid [well over double]() what homes in the lowest-risk ZIP codes pay for comparable coverage, according to Treasury Department data. Insurers offset some of that risk by buying their own insurance — reinsurance — and when reinsurance gets more expensive, that cost flows down to your premium. That’s exactly what happened in 2023–2025. ## What’s Actually Driving 2026 Rates The good news buried in this year’s numbers: reinsurance is getting cheaper again. Risk-adjusted property-catastrophe reinsurance rates fell another 10–25% at the June 2026 renewal, extending a softening trend that started in 2024. That’s the main reason primary insurers aren’t hiking rates nearly as aggressively this year. But it’s not even across the map. California is still absorbing the fallout from the January 2025 Palisades and Eaton wildfires, and the state’s [FAIR Plan]() — its insurer of last resort — is pursuing its largest rate increase in seven years after roughly $4 billion in fire losses. California as a whole is projected to see one of the largest statewide increases in the country in 2026, around 16%. At the same time, there’s a genuine bright spot in California: under the state’s new Sustainable Insurance Strategy, carriers that agreed to write more coverage in high-risk areas got faster rate approvals in return. Travelers announced in April 2026 that it would expand California homeowners coverage — the first major new commitment from a top-10 carrier since the fires — and Mercury and CSAA are already writing new policies and helping depopulate the FAIR Plan. Florida (FL) is telling almost the opposite story. After years of being the most expensive and least stable market in the country, the state-backed [Citizens Property Insurance Corporation]() is set to cut rates by about 8.7% on average this spring, as more than 546,000 policies got shifted to private carriers in 2025 through the state’s depopulation program. Florida is still the most expensive state to insure a home — premiums there are approaching $8,500 a year — but the trajectory has flipped from crisis to gradual stabilization. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates as rates shift through the rest of 2026.* ## What Coverage Level You Pick Changes Your Price Every home policy sets your payout at one of three levels, and the gap between them is bigger than most people expect. **Actual cash value** is the cheapest and lowest tier. It pays out the value of your home and belongings minus depreciation, which usually leaves you short of what you’d actually need to rebuild or replace everything. **Replacement cost** pays what it actually costs to rebuild or repurchase, without subtracting depreciation. It costs more than actual cash value, but it’s the more common middle-ground choice. **Guaranteed replacement cost** is the most expensive and most protective tier. It covers you even if rebuilding costs blow past your stated policy limits — which matters more than it used to, given how much construction costs have moved in the last few years. ## What Actually Moves Your Premium Your home’s location matters more than almost anything else. Insurers price down to the ZIP code and sometimes the street, factoring in population density, local claims history, and exposure to wildfire, flood, or hurricane risk. Coverage type and deductible are the two levers you control directly. A higher deductible — the amount you pay out of pocket before insurance kicks in — lowers your premium, but only raise it to a level you could actually cover if a claim hit tomorrow. A few more factors carry real weight: the age and reconstruction cost of your home, your claims history (a claim typically stays “chargeable” for 3–5 years and follows you between insurers), and in most states, your credit history. California, Maryland (MD), and Massachusetts (MA) are the exceptions — they don’t allow credit-based pricing for home insurance at all. Roof type and age, security systems, and proximity to a fire station round out the smaller factors insurers weigh. ## How to Actually Lower Your Home Insurance Cost Shopping around at renewal is still the single most effective lever. Rates move constantly as insurers adjust their risk appetite, so a company that was expensive two years ago may not be now — and vice versa. Raising your deductible is the second-biggest lever, but remember that in disaster-prone states you may have separate deductibles for wind, hurricane, or flood damage that don’t move when you adjust your standard deductible. Check all of them. Mitigation upgrades genuinely pay off in high-risk states. Hurricane-resistant garage doors, impact windows, and documented roof tie-downs to code can meaningfully lower your premium in wind-exposed states, and some insurers offer wildfire mitigation discounts for defensible space and fire-resistant roofing in California and similar states. Beyond that, ask specifically about: - A [multi-policy discount](https://savingtoinvest.com/cheaper-auto-insurance/) for bundling home and auto insurance with the same carrier - A loyalty or claims-free discount if you haven’t filed in several years - A discount for updated [home security systems](https://savingtoinvest.com/frugal-ways-to-keep-your-home-safe/) — smart smoke detectors, monitored alarms, water leak sensors - A discount tied to [improving your credit score](https://savingtoinvest.com/rebuild-a-poor-credit-score-using-a-credit-union/), in states where that’s still allowed ## Looking Ahead: 2027 Outlook If the reinsurance softening trend holds through the rest of 2026, next year could bring the first broadly calm renewal season homeowners have seen since before the pandemic. Falling reinsurance costs typically take a year or so to fully show up in what you pay, so 2027 is where that relief would most likely land for a lot of homeowners. That said, it won’t be uniform. States actively reforming their insurance markets — California’s Sustainable Insurance Strategy and Florida’s Citizens depopulation program — are the ones most likely to see real premium relief in 2027 as more private carriers re-enter. Wildfire- and hail-exposed areas outside those reform efforts may not see the same benefit. I’ll update this page as the 2027 renewal season data comes in, particularly once state regulators publish their next round of approved rate filings. ## Common Issues to Watch Out For **Confusing replacement cost with market value.** Your home’s replacement cost — what it takes to rebuild — often has little to do with what it would sell for, especially in areas where land value makes up a big share of the price. **Forgetting about separate peril deductibles.** If you’re in a hurricane, wildfire, or flood-prone area, your wind or named-storm deductible is often a separate percentage of your dwelling coverage, not your standard flat deductible. **Assuming flood damage is covered.** Standard homeowners policies exclude flood damage entirely — that requires a separate policy, typically through the National Flood Insurance Program or a private flood carrier. **Letting a non-renewal notice catch you off guard.** In high-risk states, insurers can decline to renew even with a clean claims history. Start shopping the moment you get a non-renewal notice rather than waiting until coverage actually lapses. **Not re-shopping after a rate reform in your state.** If your state is going through the kind of market reform California and Florida are right now, new carriers entering the market can mean a genuinely better rate that didn’t exist a year ago. I’ve also written more about [How Your FICO Credit Score Actually Works in 2026](https://savingtoinvest.com/breaking-down-and-improving-your-fico/). Frequently Asked Questions QWhat's the average cost of homeowners insurance in 2026? ANational estimates run roughly $2,400 to $2,900 a year for $300,000 to $350,000 in dwelling coverage, though this varies enormously by state - from under $1,000 in Vermont to nearly $8,500 in Florida. QWhy did my home insurance premium go up again this year? ARebuilding costs, claims history, and location-based risk are the biggest drivers. Reinsurance costs - what insurers pay to insure themselves - are actually falling in 2026, which is why most homeowners are seeing smaller increases than in 2025. QIs home insurance getting cheaper in California or Florida? ANot yet across the board, but the trend has shifted. Florida's Citizens Property Insurance is cutting rates about 8.7% this spring, and California is seeing new private carriers re-enter under a state reform program, even though the state's overall average is still rising. QDoes raising my deductible actually save meaningful money? AYes, typically. The tradeoff is that you pay more out of pocket if you file a claim, so only raise it to an amount you could comfortably cover in an emergency. QDoes home insurance cover flood damage? ANo. Standard homeowners policies exclude flood damage entirely. You need a separate flood policy, either through the National Flood Insurance Program or a private flood insurer. QCan bundling home and auto insurance actually save money? AUsually, yes - most insurers offer a multi-policy discount for bundling, though it's still worth comparing the bundled price against separate best-in-class quotes, since the discount doesn't always beat shopping each policy independently. **Categories:** Saving and Investing ideas --- ### [IRS Business Tax Account in 2026: C Corporations and Nonprofits Can Now Register — Here's Who's Still Left Out](https://savingtoinvest.com/business-tax-account-transcripts-now-available-online/) **Published:** December 20, 2023 **Author:** Andy **Content:** ### Key Takeaways - Business Tax Account access has expanded well past the original 2023 rollout - C corporations, tax-exempt organizations, government entities, and Indian Tribal governments can now register, not just sole proprietors, partnerships, and S corporations. - One gap hasn't closed: LLCs that file as sole proprietors using Schedule C or Schedule F still can't open a Business Tax Account at all. - Single-member LLCs taxed as an S corporation or partnership only have limited shareholder/partner access right now - full Designated Official access for these entities is still listed as 'coming soon' by the IRS. - If you registered as a Designated Official in 2025, you have to renew that role every year between June 15 and July 29, or you lose access and have to re-register from scratch. - Once you're in, you can view and download transcripts for a much wider range of forms than the account originally supported - employment, excise, income, and even wagering tax forms. The IRS has quietly widened who can use Business Tax Account since it first opened to partnerships and S corporations in late 2023. As of mid-2026, C corporations, tax-exempt organizations, federal/state/local government entities, and Indian Tribal governments can all register for full online access to their tax records. That’s a real expansion. But one thing hasn’t changed: if your business is an LLC that files taxes as a sole proprietor — meaning you report income on Schedule C or Schedule F of your personal Form 1040 — you still can’t open a Business Tax Account at all. The IRS says explicitly this isn’t supported yet. Covered in this Article: [Toggle](#) - [Who Can Register in 2026, by Entity Type](#Who_Can_Register_in_2026_by_Entity_Type) - [What Full Access Actually Gets You](#What_Full_Access_Actually_Gets_You) - [The Designated Official Renewal Deadline You Might Be Missing](#The_Designated_Official_Renewal_Deadline_You_Might_Be_Missing) - [Online Notices Are Expanding Too](#Online_Notices_Are_Expanding_Too) - [Getting Started (or Getting Access for Someone New)](#Getting_Started_or_Getting_Access_for_Someone_New) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## Who Can Register in 2026, by Entity Type Access and what you can do both depend on your business structure and your role in it. Here’s the current breakdown. Entity typeWho can registerAccess levelSole proprietor (with EIN, files Schedule C or F)The business ownerFull accessLLC filing as sole proprietor (Schedule C/F)Not yet supportedNonePartnership (Form 1065)General partner or managing member (Designated Official)Full accessPartnership (Form 1065)Individual partner with a Schedule K-1Limited — transcripts and balance onlyS corporation (Form 1120-S)Officer, W-2 employee, authorized to bind the business (Designated Official)Full accessS corporation (Form 1120-S)Individual shareholder with a Schedule K-1Limited — transcripts and balance onlyC corporation (Form 1120)Officer, W-2 employee, authorized to bind the business (Designated Official)Full accessSingle-member LLC (files 1120-S or 1065)Individual shareholder or partner with a K-1Limited only — Designated Official access is “coming soon”Government entity, tax-exempt org, tribal governmentElected/appointed official, officer, board chair, or trustee (Designated Official)Full access If you’re an individual partner or shareholder, your limited access now reaches further back than it used to. Partners can see any tax year where they have a Schedule K-1 on file going back to 2012, and S-corp shareholders back to 2006 — both current through the 2023 tax year. ## What Full Access Actually Gets You If you qualify for full (Designated Official) access, you can see your business profile, total balance owed by year, payment history, and make federal tax deposits, balance-due payments, and advance payments directly. You can also download tax transcripts and your EIN verification letter, view IRS notices and letters online, and manage who else in your organization has access as a Designated User. The transcript downloads now cover a much broader set of forms than the original 2023 rollout, which was mostly limited to a handful of employment tax forms. Current categories span employment (Forms 940, 941, 943, 944, 945, CT-1, Form 5500 series), excise and use (720, 2290 heavy highway vehicle use tax, 4720, 5330, 8849), income (1065, 1120 series, 1120-S, 990 series for exempt organizations, 1041, 1042, and others), and wagering (11-C, 730). You can also accept or reject third-party transcript requests submitted through the [Income Verification Express Service (IVES)](https://www.irs.gov/individuals/income-verification-express-service-for-taxpayers) — useful if a lender or auditor is requesting your business tax records directly. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) and I’ll flag it here as soon as the IRS opens up more entity types or forms.* ## The Designated Official Renewal Deadline You Might Be Missing If you registered as a Designated Official for an S or C corporation in 2025, mark this down: the annual renewal window runs June 15 to July 29 each year. Miss it, and you lose your role and have to register again from scratch — which can mean a delay before you’re back in. The IRS notifies you inside your account during the six-week window, but it’s easy to miss if you’re not checking in regularly. If you’re reading this in late July, check your account status now before the window closes. ## Online Notices Are Expanding Too Notices that used to arrive only by mail are increasingly showing up inside Business Tax Account first. The original rollout covered a handful, including CP080 (return not received, credits on account) and CP136 (federal tax deposit requirement notification). The IRS has continued adding notice types since, so it’s worth checking your account directly rather than assuming a notice will only come by mail — especially if you’ve previously gotten a letter about your account and want to know [whether it will affect your refund or return processing](https://savingtoinvest.com/should-i-be-worried-if-i-get-an-irs-notice-or-letter-will-it-affect-my-tax-return-processing-or-refund-payment/). ## Getting Started (or Getting Access for Someone New) New businesses still can’t access Business Tax Account until at least one business return has been filed and processed. If you’re self-employed with an EIN and already have a personal IRS Online Account, you can typically use the same login, since the IRS requires the same sign-in for both accounts. You can also authorize an accountant or power of attorney holder to access the account on the business’s behalf. Set up or manage a Business Tax Account at [IRS.gov/businesstaxaccount](https://www.irs.gov/businesses/business-tax-account). ## Looking Ahead: 2027 Outlook The IRS has been rolling out Business Tax Account in phases for going on three years now, and the trend line is clear: more entity types, more forms, and more self-service each year. The single-member LLC “Designated Official coming soon” note and the sole-proprietor-LLC gap both look like the next logical expansions. Whether that timeline holds depends heavily on IRS technology funding, which has been a moving target the past few budget cycles. I wouldn’t bank on a specific 2027 date for either fix, but I’ll update this page the moment either changes. ## Common Issues to Watch Out For I hear from readers who’ve hit a wall registering for this account more than almost any other IRS tool. A few patterns show up repeatedly. **Assuming an LLC automatically qualifies.** Whether your LLC can register depends entirely on how it files taxes — as a sole proprietor, it currently can’t; as an S corp or partnership, it can (with some access limits). **Forgetting the Designated Official renewal.** This one’s easy to lose track of since it only happens once a year, in a specific six-week window. Set a calendar reminder for mid-June. **Not realizing new businesses need a filed return first.** If you just got your EIN and tried to register immediately, that’s why it didn’t work — you need at least one processed business return on file. **Mixing up personal and business sign-ins.** Because both accounts share a login, some readers create a second identity-verification profile by mistake. Use the same credentials you’d use for your [personal IRS Online Account](https://www.irs.gov/payments/online-account-for-individuals) if you already have one. I’ve also written more about [Where Is My Business Tax Refund?](https://savingtoinvest.com/where-is-my-business-tax-refund/), [Will Calling the IRS Help Getting My Tax Refund Faster?](https://savingtoinvest.com/will-calling-the-irs-help-getting-my-tax-refund-faster/), [Small Business Retirement Plans — Solo 401(k), SEP IRA, SIMPLE IRA, and ESOP](https://savingtoinvest.com/small-business-retirement-plans-401k-sep-ira-simple-ira-and-esop-plans/), and [Quarterly Estimated Taxes: What Freelancers Actually Need to Know](https://savingtoinvest.com/quarterly-estimated-taxes-this-year-what-freelancers-actually-need-to-know/). Frequently Asked Questions QCan my LLC get a Business Tax Account? AIt depends on how your LLC files. If it's taxed as a sole proprietorship (Schedule C or F), it currently can't register at all. If it's taxed as an S corporation (Form 1120-S) or partnership (Form 1065), individual shareholders and partners can register for limited access, though full Designated Official access for single-member LLCs is still listed as 'coming soon.' QWhat's new about Business Tax Account in 2026 compared to when it launched? AThe biggest change is that C corporations, tax-exempt organizations, government entities, and Indian Tribal governments can now register for full access - none of these were supported when the tool launched for partnerships and S corporations in late 2023. QWhat happens if I miss the Designated Official renewal window? AYou lose your Designated Official role and access to the account until you register again. The renewal window runs June 15 to July 29 each year, and the IRS only notifies you inside the account itself, so it's easy to miss if you're not checking in. QCan a new business register for a Business Tax Account right away? ANo. You need to have filed at least one business tax return and had it processed by the IRS before you can access Business Tax Account for that entity. QWho counts as a Designated Official for an S corporation or C corporation? AYou must be an officer (president, VP, CEO, CFO, COO, secretary, or treasurer) or managing member, currently receive a W-2 from the business for the most recent tax year, and be legally authorized to bind the business. **Categories:** Taxes and Retirement --- ### [Social Security Survivor Benefits: Who Qualifies and How Much You Get](https://savingtoinvest.com/social-security-survivor-benefits/) **Published:** July 24, 2026 **Author:** Andy **Content:** ### Key Takeaways - A surviving spouse can claim as early as age 60 (age 50 if disabled), starting at 71.5% of the deceased worker's benefit and rising to 100% at the survivor Full Retirement Age (66-67, depending on birth year). - Children generally get 75% of the deceased parent's benefit, up to a family maximum SSA calculates per household. - A one-time $255 lump-sum death payment goes to an eligible spouse or child - you have to apply for it within 2 years of the death. - Remarrying before age 60 (age 50 if disabled) generally ends your eligibility for survivor benefits on your former spouse's record. - Divorced spouses married 10+ years can qualify for survivor benefits on an ex-spouse's record without affecting the current spouse's payment. - You can claim survivor benefits now and switch to your own retirement benefit later (as late as age 70) if that ends up paying more. When someone who worked and paid into Social Security dies, their spouse, ex-spouse, children, or dependent parents may be able to claim a monthly payment based on that person’s earnings record. The rules around who qualifies and how much they get are more layered than most people expect. Here’s how survivor benefits actually work in 2026. Covered in this Article: [Toggle](#) - [Who Can Get Survivor Benefits](#Who_Can_Get_Survivor_Benefits) - [How Much a Surviving Spouse Gets](#How_Much_a_Surviving_Spouse_Gets) - [How Much Children Get](#How_Much_Children_Get) - [The $255 Lump-Sum Death Payment](#The_255_Lump-Sum_Death_Payment) - [Remarriage and the Divorced-Spouse Rules](#Remarriage_and_the_Divorced-Spouse_Rules) - [Switching Between Survivor and Retirement Benefits](#Switching_Between_Survivor_and_Retirement_Benefits) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027](#Looking_Ahead_2027) ## Who Can Get Survivor Benefits **Spouses and ex-spouses** generally qualify if they’re age 60 or older (age 50 if disabled), were married at least 9 months before the death, and didn’t remarry before age 60 (age 50 if disabled). Ex-spouses need at least 10 years of marriage to qualify, and their benefit doesn’t reduce what the current spouse receives. There’s an important exception to the age rule: if you’re caring for the deceased’s child who is under 16 or disabled, you can qualify for survivor benefits at any age. **Children** generally qualify if they’re unmarried and under 18 (or 18–19 and still in high school full time), or if they became disabled before age 22 — that disability-related eligibility has no age limit at all. **Dependent parents** age 62 or older who relied on the deceased financially can also qualify, though this category is less common than spouse or child benefits. ## How Much a Surviving Spouse Gets The amount scales with how early you claim, similar to retirement benefits but on its own separate schedule. **Diane**, 61, lost her husband and applies for survivor benefits right away. She’ll receive roughly 71.5% of what he would have collected — the minimum payment rate, reserved for the earliest possible claiming age of 60. Wait longer and the percentage climbs: over 75% at 61, over 80% at 63, over 90% at 65, and the full 100% once you reach your survivor Full Retirement Age, which falls between 66 and 67 depending on your birth year (this is calculated slightly differently from your own retirement FRA, so don’t assume they’re identical). ## How Much Children Get Each eligible child generally receives 75% of the deceased parent’s benefit amount. But there’s a ceiling on the total a family can collect, called the family maximum — SSA proportionally reduces everyone’s individual payments to keep the household total under that cap, typically somewhere between 150% and 180% of the deceased worker’s benefit. **Mark and his two children**, ages 9 and 12, lose their mother. Each child would normally get 75% of her benefit, but adding Mark’s own survivor amount pushes the household over the family maximum, so SSA scales all three payments down proportionally. Ex-spouses collecting on the same record don’t count toward this family cap. > *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) and I’ll flag it if SSA updates any of these percentages or thresholds.* ## The $255 Lump-Sum Death Payment Separate from the monthly survivor benefit, SSA pays a one-time $255 death payment to an eligible surviving spouse (or, in some cases, an eligible child if there’s no qualifying spouse). This has to be applied for within 2 years of the death, and it’s paid on top of any monthly benefit — not instead of it. This dollar figure hasn’t been adjusted for inflation in decades, so don’t expect it to move year to year the way monthly benefits do with COLA. ## Remarriage and the Divorced-Spouse Rules Remarry before age 60 (50 if disabled), and you generally give up survivor eligibility on your former spouse’s record — though if that later marriage also ends, you may be able to reclaim it. Divorced spouses have their own path: as long as the marriage lasted at least 10 years, you can claim survivor benefits on an ex-spouse’s record even if they remarried, and it has zero effect on what their current spouse collects. ## Switching Between Survivor and Retirement Benefits If you’re eligible for both a survivor benefit and your own retirement benefit, SSA doesn’t add them together — you get whichever is higher at any given time, and you can switch strategies as your circumstances change. A common approach: claim the survivor benefit earlier (as young as 60), then switch to your own retirement benefit later — as late as age 70 — if delayed retirement credits will make your own benefit larger by then. Working with a benefits calculator or a Social Security-savvy advisor before locking in either choice is worth the time here, since the optimal order depends heavily on each person’s own earnings record. ## Common Issues to Watch Out For A few mix-ups come up again and again with this topic. **Assuming survivor FRA matches retirement FRA.** They’re calculated on separate tables and can differ by up to a year — don’t assume the number you know for your own retirement benefit applies here. **Forgetting the $255 death payment has its own 2-year deadline.** It’s easy to overlook this small, separate application in the middle of handling a death — but miss the window and it’s gone for good. **Not realizing remarriage before 60 cuts off eligibility.** This surprises people who assume survivor benefits are locked in for life once you initially qualify. **Missing the caregiver exception.** If you’re under 60 but caring for the deceased’s young or disabled child, you may still qualify — a lot of younger widows and widowers don’t realize this age exception exists. **Not comparing survivor vs. own retirement benefit before claiming.** Because SSA pays whichever is higher rather than both, claiming the wrong one first — or not planning the switch — can leave real money on the table over a retirement. ## Looking Ahead: 2027 Survivor benefit dollar amounts move with each year’s Social Security COLA, since they’re based on a percentage of the deceased worker’s benefit. Watch for the 2027 COLA announcement in October, which will set next year’s actual dollar figures even though the percentage schedule (71.5% to 100%) itself stays fixed. I’ll update this page once the 2027 COLA is official. For related reading, see [SSDI Back Pay: How It Works, How Much You Get, and When It Arrives](https://savingtoinvest.com/ssdi-back-pay-how-it-works/), [Social Security Payment Dates: 2026 Schedule by Birth Date](https://savingtoinvest.com/social-security-payment-schedule-by-birth-date/), [2027 Social Security COLA Update](https://savingtoinvest.com/lower-social-security-cola-for-2027-early-predictions-to-watch/), and [SSI Maximum Payment Amounts](https://savingtoinvest.com/ssi-maximum-payment-amounts/). Frequently Asked Questions QAt what age can I claim Social Security survivor benefits? AAs early as age 60 (age 50 if you have a disability), or at any age if you're caring for the deceased's child who is under 16 or disabled. QHow much does a surviving spouse get from Social Security? AIt starts at 71.5% of the deceased worker's benefit at age 60 and rises to 100% once you reach your survivor Full Retirement Age, which falls between 66 and 67. QHow much do children get in survivor benefits? AGenerally 75% of the deceased parent's benefit each, subject to a family maximum that can reduce individual payments if there are multiple eligible family members. QWhat is the $255 Social Security death payment? AA one-time lump sum paid to an eligible surviving spouse or child, separate from monthly survivor benefits. It must be applied for within 2 years of the death. QCan I get survivor benefits from an ex-spouse's Social Security record? AYes, if you were married at least 10 years. It doesn't reduce what the ex-spouse's current spouse receives. QDoes remarrying affect my survivor benefits? ARemarrying before age 60 (age 50 if disabled) generally ends eligibility for survivor benefits on your former spouse's record, though you may be able to reclaim it if the later marriage ends. QCan I switch from survivor benefits to my own retirement benefit later? AYes. SSA pays whichever benefit is higher at any given time, so many people claim survivor benefits early and switch to their own retirement benefit later, up to age 70, if it becomes the larger payment. **Categories:** Taxes and Retirement --- ### [5 Places to Get Free Tax Advice, Guidance, and Help](https://savingtoinvest.com/5-places-to-get-free-tax-advice-guidance-and-help/) **Published:** January 23, 2015 **Author:** Andy **Content:** ### Key Takeaways - IRS Free File now covers taxpayers with 2025 adjusted gross income of $89,000 or less - up $5,000 from last year, one of the largest increases in the program's history. - VITA (Volunteer Income Tax Assistance) offers free in-person help from IRS-certified volunteers, generally for filers earning around $67,000 or less, people with disabilities, and limited English speakers. - TCE (Tax Counseling for the Elderly) has no income limit and focuses on filers 60 and older, often staffed through AARP Foundation Tax-Aide. - Cash App Taxes and FreeTaxUSA both offer free federal filing for most tax situations, including itemized deductions - a rarity among 'free' tax software. - Public libraries frequently host free VITA/TCE tax prep events or provide access to forms during filing season - worth checking your local branch. If you don’t want to pay a preparer or a software subscription fee, there are several genuinely free ways to get your taxes done or get expert help along the way. Here’s where to look, and who actually qualifies for each option. **[Subscribe here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get the latest tax and refund articles delivered to your inbox.** Covered in this Article: [Toggle](#) - [1. IRS Free File and Direct File](#1_IRS_Free_File_and_Direct_File) - [2. VITA (Volunteer Income Tax Assistance)](#2_VITA_Volunteer_Income_Tax_Assistance) - [3. TCE (Tax Counseling for the Elderly)](#3_TCE_Tax_Counseling_for_the_Elderly) - [4. Free Tax Software](#4_Free_Tax_Software) - [5. Your Local Library](#5_Your_Local_Library) - [A Word of Caution](#A_Word_of_Caution) ## 1. IRS Free File and Direct File IRS Free File gives you access to guided tax prep software at no cost if your adjusted gross income for the year was **$89,000 or less** (2025 tax year, filed in 2026) – up $5,000 from the prior year, one of the largest single-year increases the program has seen. Eight private-sector partners participate, each with its own additional eligibility rules (age, state residency, or military status can factor in), so compare a couple of options at [IRS.gov/freefile](https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free) before picking one. If your AGI is above the threshold, you can still use **Free File Fillable Forms** – electronic versions of paper IRS forms with no guidance, useful if you’re comfortable preparing your own return. **IRS Direct File** is a separate, IRS-run filing tool that’s been expanding to more states each season. Check [directfile.irs.gov](https://www.irs.gov/filing/irs-direct-file-for-free) to see if your state and tax situation currently qualify – eligibility depends on both, and it changes from year to year. ## 2. VITA (Volunteer Income Tax Assistance) VITA sites are staffed by IRS-certified volunteers and offer free, in-person tax prep for people who generally earn around $67,000 or less, people with disabilities, and taxpayers with limited English proficiency. Because the exact income cutoff is adjusted and can vary slightly by site, confirm the current limit and find a location near you through the [VITA locator tool](https://www.irs.gov/individuals/free-tax-return-preparation-for-qualifying-taxpayers). ## 3. TCE (Tax Counseling for the Elderly) TCE has no income limit, but it’s built around taxpayers age 60 and older and specializes in the tax issues that come with retirement – pensions, Social Security taxation, and required minimum distributions. Most TCE sites are run through **AARP Foundation Tax-Aide**, one of the largest free tax prep programs in the country. Find a site through the same [IRS locator tool](https://www.irs.gov/individuals/free-tax-return-preparation-for-qualifying-taxpayers) used for VITA. ## 4. Free Tax Software A handful of providers offer genuinely free federal filing, though the fine print varies — see our [full comparison of tax software and free filing options](https://savingtoinvest.com/the-best-tax-software-and-free-filing-options-as-tax-filing-goes-primarily-online/) for a deeper look beyond these free tiers: - **Cash App Taxes** offers free federal *and* state filing for most supported situations, with no income cap – one of only two providers doing this. It doesn’t support multi-state returns or a handful of less common situations. - **FreeTaxUSA** covers federal filing for free, including itemized deductions (mortgage interest, property taxes, charitable donations) – unusual for a free tier. State returns cost extra. - **H&R Block** and **TurboTax** both offer free tiers for simple returns (W-2 income, standard deduction), but self-employment income, itemizing, or other complexity typically triggers an upgrade to a paid tier. Check each provider’s current-year eligibility rules before you start, since “free” tiers are redefined every filing season. ## 5. Your Local Library Many public libraries host free VITA/TCE tax prep events during filing season, staffed by the same IRS-certified volunteers, or provide free access to paper forms and reference guides if you’re filing yourself. Availability varies by branch and by season, so check your library’s website or call ahead before assuming a specific location offers it. ## A Word of Caution Free help is legitimate and valuable, but the same due diligence that applies to paid preparers still applies here. Verify that any volunteer or site is IRS-certified before handing over documents, and be wary of anyone – free or paid – who promises an unusually large refund before actually reviewing your return. Whichever option you use, once you’ve filed, you can track your refund and compare it against the [current-year IRS tax brackets and standard deduction](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/) to sanity-check your return, and see [when you can file and the key deadlines](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) for the current season. If your refund seems delayed once it’s been accepted, [here’s why that happens and what to check](https://savingtoinvest.com/why-is-it-taking-so-long-to-get-my-tax-refund/). Frequently Asked Questions QWho qualifies for IRS Free File in 2026? ATaxpayers with 2025 adjusted gross income of $89,000 or less qualify for free guided tax software through IRS Free File - up $5,000 from the prior year. If your AGI is higher, you can still use Free File Fillable Forms, which offer no guidance but are free for any income level. QWhat's the difference between VITA and TCE? AVITA serves filers earning roughly $67,000 or less, people with disabilities, and limited-English speakers. TCE has no income limit but focuses on filers 60 and older and is usually staffed through AARP Foundation Tax-Aide, with expertise in retirement-specific tax issues. QIs any tax software actually free, including state filing? ACash App Taxes offers free federal and state filing for most supported situations with no income cap - a rare combination. FreeTaxUSA's federal filing (including itemized deductions) is free, but its state return carries a fee. TurboTax and H&R Block's free tiers only cover simple returns. QCan my local library really help me file my taxes? AMany libraries host VITA/TCE tax prep events during filing season or provide free access to forms and guides. Availability depends on your specific branch and the time of year, so check ahead rather than assuming. QWhat should I watch out for when using free tax help? AConfirm any volunteer or service is IRS-certified before sharing documents, and treat promises of an unusually large refund as a red flag regardless of whether the service is free or paid. **Categories:** Taxes and Retirement **Tags:** advice, free, help, IRS, tax, tax preparer --- ### [California (CA) State Tax Refund Status and Key Tax Considerations](https://savingtoinvest.com/california-ca-tax-considerations/) **Published:** January 15, 2022 **Author:** Andy **Content:** ### Key Takeaways - The Middle Class Tax Refund (MCTR) program has fully ended - all prepaid debit cards expired April 30, 2026, and the roughly $400 million in unclaimed funds was returned to the state's General Fund. - Check your refund status directly through the Franchise Tax Board's Where's My Refund tool - no login required, just your SSN/ITIN, filing status, and exact refund amount. - E-filed California returns typically process within 3-4 weeks; paper returns can take up to 3 months. - CalEITC is available to filers with 2025 earned income of $32,900 or less, and the Young Child Tax Credit adds up to $1,189 for a qualifying child under 6. - California's income tax brackets run from 1% to 12.3%, plus an additional 1% Mental Health Services surcharge on income over $1 million (13.3% total top rate) - always confirm the current-year thresholds on the FTB site rather than relying on prior-year numbers. If you’re a California resident or tax filer, here’s what’s worth knowing about the state’s refund process and a few key state-specific tax considerations for 2026. **[Subscribe here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get notified of updates on California and federal tax changes.** Covered in this Article: [Toggle](#) - [The Middle Class Tax Refund (MCTR) Program Has Ended](#The_Middle_Class_Tax_Refund_MCTR_Program_Has_Ended) - [Checking Your Current CA Tax Refund Status](#Checking_Your_Current_CA_Tax_Refund_Status) - [California Earned Income Tax Credit (CalEITC)](#California_Earned_Income_Tax_Credit_CalEITC) - [California State Tax Brackets](#California_State_Tax_Brackets) ## The Middle Class Tax Refund (MCTR) Program Has Ended The one-time Middle Class Tax Refund, passed in 2022, sent a combined $9.2 billion to roughly 32 million California taxpayers and their dependents via direct deposit or prepaid debit card between October 2022 and January 2023. **That program is now fully closed.** All MCTR prepaid debit card accounts expired on April 30, 2026, and the roughly $400 million left unclaimed on those cards was returned to the State of California General Fund under the terms of the Better for Families Act of 2022. If you had an MCTR debit card and want your transaction history for your records, [MCTRpayment.com](https://mctrpayment.com/) has said it will keep that history available through July 31, 2026 – check the current deadline on that site before it closes. There is no indication of a similar statewide relief payment being planned for 2026 or 2027 as of this writing. ## Checking Your Current CA Tax Refund Status The California Franchise Tax Board ([FTB](https://www.ftb.ca.gov/)) manages the administration and collection of taxes for individuals and corporations in the state. You generally have to file a California state tax return if you’re an income-earning resident, part-year resident, or a non-resident who earned income from a California source. To check your refund status, use the FTB’s [Where’s My Refund tool](https://www.ftb.ca.gov/refund/index.asp) directly – no account or login required for basic status checks, just your SSN/ITIN, filing status, and exact refund amount. E-filed returns are typically processed within 3 to 4 weeks; paper returns can take up to 3 months. You can also use [tax software with free filing options](https://savingtoinvest.com/the-best-tax-software-and-free-filing-options-as-tax-filing-goes-primarily-online/) to file both your federal and California returns, or use CalFile to file directly with the FTB for free if your income is below the qualifying threshold. ## California Earned Income Tax Credit (CalEITC) Lower-income Californians may qualify for CalEITC, a state-level credit that stacks on top of the [federal EITC](https://savingtoinvest.com/earned-income-tax-credit-eitc-qualification-and-income-threshold-limits/). For the 2025 tax year, you generally need earned income of **$32,900 or less** to qualify. Filers with a qualifying child under age six may also receive the **Young Child Tax Credit (YCTC)**, worth up to **$1,189** for 2025, claimed on the same FTB Form 3514 used for CalEITC. Check the current year’s exact thresholds directly at [ftb.ca.gov/caleitc](https://www.ftb.ca.gov/about-ftb/newsroom/caleitc/index.html), since both credits are adjusted periodically. ## California State Tax Brackets California has one of the most progressive state income tax structures in the country, with rates currently ranging from **1% up to 12.3%** depending on taxable income and filing status, plus an additional **1% Mental Health Services Tax** on income over $1 million – bringing the effective top marginal rate to **13.3%**. Because California adjusts its bracket thresholds for inflation each year, always check the [current-year brackets directly on the FTB site](https://www.ftb.ca.gov/file/personal/tax-rates-and-exemptions.html) rather than relying on a prior year’s numbers – bracket thresholds cited elsewhere online are frequently out of date. You can see the [current federal IRS tax brackets here](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/) for comparison. If you’d rather have a real person walk through your California return with you, see my roundup of [free tax advice and filing help](https://savingtoinvest.com/5-places-to-get-free-tax-advice-guidance-and-help/) — several of the options apply directly to CA filers. Frequently Asked Questions QIs the California Middle Class Tax Refund still available? ANo. The MCTR program has fully ended - all prepaid debit card accounts expired on April 30, 2026, and roughly $400 million in unclaimed funds was returned to the state's General Fund. There's no indication of a similar statewide relief payment being planned for 2026 or 2027. QHow do I check my California state tax refund status? AUse the Franchise Tax Board's Where's My Refund tool directly on ftb.ca.gov. No account or login is required for a basic status check - just your SSN/ITIN, filing status, and exact refund amount. QHow long does a California state refund take to process? AE-filed returns are typically processed within 3 to 4 weeks. Paper returns can take up to 3 months, so e-filing is the faster option if you're expecting a refund. QWhat is CalEITC and who qualifies for 2025? ACalEITC is California's state-level earned income tax credit, available to filers with 2025 earned income of $32,900 or less. It stacks on top of the federal EITC. Filers with a qualifying child under 6 may also receive the Young Child Tax Credit, worth up to $1,189 for 2025. QWhat are California's current state income tax rates? ACalifornia's rates run from 1% to 12.3% depending on taxable income and filing status, plus an additional 1% Mental Health Services Tax on income over $1 million - a 13.3% effective top rate. Because brackets are adjusted for inflation annually, always verify the current-year thresholds directly on the FTB site. **Categories:** Taxes and Retirement --- ### [Are You Upper Middle Class? 2026 Income Thresholds and a State-by-State Breakdown](https://savingtoinvest.com/are-you-upper-middle-class/) **Published:** April 5, 2026 **Author:** Andy **Content:** ### Key Takeaways - The national upper middle class band is roughly $133,000 to $400,000 for a family of three (in 2024 dollars, per the WSJ definition), with households above that classified as rich - The U.S. median household income hit an all-time high of $83,730 in 2024 per the Census Bureau - so the upper middle class starts at about 1.6x your state's median income - State medians range from $55,980 in Mississippi to $113,900 in Massachusetts, which shifts the upper-middle threshold by over $90,000 between states - Nationally, it takes $234,769 in household income to reach the top 10%, and $631,500 to reach the top 1%, per 2024 Census data - Income gets you into the tier, but what you save and invest - not what you earn - determines whether you stay wealthy - With 2026 inflation running in the 2-3% range, expect these thresholds to drift up roughly $3,000-$5,000 at the lower bound next year Nationally, upper middle class means a family of three earning roughly $133,000 to $400,000 — but the honest answer depends heavily on your state. In Mississippi (MS) you can hit the tier at around $89,000, while in Massachusetts (MA) the bar starts near $181,000. The full state-by-state table is below. According to the [WSJ](https://www.wsj.com/economy/more-americans-are-breaking-into-the-upper-middle-class-bf8b7cb2), more and more Americans are moving into this tier despite an adverse macroeconomic environment. Here is how they classify upper middle class based on income: > ….\[Upper Middle Class\] is classified a family of three earning $133,000 to $400,000 (in 2024 dollars). Households earning more were categorized as rich. Many families are surprised to find that they have moved into this new economic tier, and see themselves as comfortable, not rich. They tend to have jobs that are white collar but not flashy—think accountants, not tech founders. **Do you agree with this?** Overall it seems accurate, but it largely depends on where you live and your spending habits. Someone in NYC earning $400,000 could feel squarely middle class given city living costs. In South Dakota (SD) or Kentucky (KY), that same income is comfortably “rich” territory. Covered in this Article: [Toggle](#) - [What Counts as Upper Middle Class in 2026?](#What_Counts_as_Upper_Middle_Class_in_2026) - [Upper Middle Class Income by State (2026)](#Upper_Middle_Class_Income_by_State_2026) - [Where Do You Rank Nationally? The Full Income Percentile Ladder](#Where_Do_You_Rank_Nationally_The_Full_Income_Percentile_Ladder) - [Income Isn’t Wealth](#Income_Isnt_Wealth) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) ## What Counts as Upper Middle Class in 2026? The WSJ’s $133,000–$400,000 band is stated in 2024 dollars. Adjusting for the inflation we’ve seen since, the practical 2026 band is closer to **$140,000 to $420,000** for a family of three nationally. Two things drive whether a given income actually feels upper middle class: your state (see the table below) and your household size. A single earner at $150,000 lives a very different life than a family of five at the same number. The latest Census data (2024 American Community Survey) puts the national median household income at $83,730 — a record high. That means the upper middle class lower bound sits at about 1.6 times the median, and the “rich” line at about 4.8 times. ## Upper Middle Class Income by State (2026) To make this practical, I’ve applied those same national multiples (1.6x to 4.8x) to each state’s median household income from the Census Bureau’s 2024 American Community Survey. The result is an apples-to-apples estimate of what it takes to be upper middle class where you actually live. StateMedian Household Income (2024)Upper Middle Class Starts At“Rich” Starts AboveAlabama (AL)$65,560$104,000$313,000Alaska (AK)$91,260$145,000$436,000Arizona (AZ)$84,700$135,000$405,000Arkansas (AR)$64,840$103,000$310,000California (CA)$100,600$160,000$481,000Colorado (CO)$106,500$169,000$509,000Connecticut (CT)$99,240$158,000$474,000Delaware (DE)$85,860$136,000$410,000District of Columbia (DC)$104,800$166,000$501,000Florida (FL)$75,630$120,000$361,000Georgia (GA)$81,210$129,000$388,000Hawaii (HI)$98,240$156,000$469,000Idaho (ID)$81,650$130,000$390,000Illinois (IL)$84,210$134,000$402,000Indiana (IN)$76,710$122,000$366,000Iowa (IA)$85,480$136,000$408,000Kansas (KS)$87,690$139,000$419,000Kentucky (KY)$64,790$103,000$310,000Louisiana (LA)$60,740$96,000$290,000Maine (ME)$90,730$144,000$433,000Maryland (MD)$109,700$174,000$524,000Massachusetts (MA)$113,900$181,000$544,000Michigan (MI)$79,460$126,000$380,000Minnesota (MN)$92,350$147,000$441,000Mississippi (MS)$55,980$89,000$267,000Missouri (MO)$78,390$125,000$374,000Montana (MT)$81,920$130,000$391,000Nebraska (NE)$86,140$137,000$412,000Nevada (NV)$80,590$128,000$385,000New Hampshire (NH)$111,800$178,000$534,000New Jersey (NJ)$103,500$164,000$494,000New Mexico (NM)$64,140$102,000$306,000New York (NY)$86,830$138,000$415,000North Carolina (NC)$67,220$107,000$321,000North Dakota (ND)$88,080$140,000$421,000Ohio (OH)$80,520$128,000$385,000Oklahoma (OK)$65,310$104,000$312,000Oregon (OR)$89,700$142,000$429,000Pennsylvania (PA)$80,060$127,000$382,000Rhode Island (RI)$92,290$147,000$441,000South Carolina (SC)$76,780$122,000$367,000South Dakota (SD)$79,850$127,000$381,000Tennessee (TN)$75,860$120,000$362,000Texas (TX)$81,490$129,000$389,000Utah (UT)$104,000$165,000$497,000Vermont (VT)$85,260$135,000$407,000Virginia (VA)$97,720$155,000$467,000Washington (WA)$97,500$155,000$466,000West Virginia (WV)$63,150$100,000$302,000Wisconsin (WI)$82,560$131,000$394,000Wyoming (WY)$78,680$125,000$376,000 Source: Census Bureau 2024 ACS median household income (via FRED), scaled by the national upper-middle-class multiples. Estimates rounded to the nearest $1,000. New York looks surprisingly low because the statewide median includes upstate — for NYC metro specifically, add 25–40%. A couple of examples to make it concrete. Mark and Dana, a two-earner household in Ohio (OH) bringing in $135,000 combined, are comfortably upper middle class in their state — the bar there is about $128,000. Meanwhile Sarah, a solo tech worker in Colorado (CO) earning that same $135,000, falls short of her state’s $169,000 threshold, and given Denver housing costs, she probably feels it. *I’ll refresh this table when the Census releases 2025 state income data. [Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates.* ## Where Do You Rank Nationally? The Full Income Percentile Ladder The state table above tells you where you stand locally, but a lot of readers ask a simpler question: forget my state, what percentile is my household income nationally? Here’s the full 2024 breakdown, straight from Census Bureau data. Percentile RankHousehold Income RangeBottom 20%Up to $34,51020th–40th percentile$34,511 – $65,10040th–60th percentile (median tier)$65,101 – $105,50060th–80th percentile$105,501 – $153,00080th–90th percentile$153,001 – $234,76990th–95th percentile$234,770 – $315,50495th–99th percentile$315,505 – $631,500Top 1%Above $631,500 Source: [U.S. Census Bureau, Income in the United States: 2024](https://www.census.gov/library/publications/2025/demo/p60-286.html) (quintile upper limits and top 5%/1% thresholds, CPS ASEC). A household earning $150,000 sits right around the 80th percentile nationally — solidly upper middle class by income, even though (as the state table shows) that same $150,000 clears the bar easily in Mississippi but falls short of the threshold in Massachusetts or Colorado. To break into the top 1% nationally, a household needs to clear $631,500 — a very different number than the $400,000 “rich” line the WSJ definition uses, which is really describing the upper end of upper-middle rather than the true 1%. ## Income Isn’t Wealth Ultimately, it’s not what you make but **[what you save and invest](https://savingtoinvest.com/master-your-money-the-ultimate-personal-income-and-spending-roadmap/)**. Like most people, your income will vary over your life based on your job, health, and lifestyle — which means high income does not equate to long-term wealth. That’s why I like this **5 step guide for getting rich** over the longer term in America (it comes down to discipline): 1. Make an upper middle class income ($150k+). This means having the skills (college, trade or other) that align with what the labor market is willing to pay for (which is all about [AI now](https://savingtoinvest.com/how-ai-is-reshaping-your-financial-life-a-look-at-ai-powered-personal-finance/)), which may not be something you love. 2. Live below your means, even as your income rises. This means avoiding lifestyle creep and carefully managing your car, house, and education expenses for kids. 3. Invest the difference (ideally 25%+ of gross income) in low-cost index funds. [The power of compounding](https://savingtoinvest.com/power-of-compounding-1-million-now-or/) does the rest. 4. Repeat for 2+ decades. 5. Retire rich. Even a high income doesn’t guarantee you’ll feel financially secure — I go deeper on why so many six-figure households still feel like they’re one paycheck from trouble in my [high-income financial fragility post](https://savingtoinvest.com/why-even-high-income-earners-are-not/). ## Common Issues to Watch Out For A few things I see trip people up when they benchmark themselves against tables like this: - **Comparing gross to net.** These thresholds are gross (pre-tax) household income. If you’re mentally comparing your take-home pay, you’ll understate your position by 25–35%. - **Ignoring household size.** The WSJ band assumes a family of three. A single filer should mentally shift the band down; a family of five, up. - **Statewide averages hide metro reality.** Statewide medians blend expensive metros with cheaper rural areas. If you’re in Seattle, Miami, or the NYC metro, your local threshold is meaningfully higher than the state row suggests. - **Anchoring on income instead of net worth.** A $200,000 household with no savings and two leased luxury cars is upper middle class on paper only. Track net worth, not just income. - **Confusing the national percentile with the state-adjusted tier.** A household at the 80th percentile nationally ($150K) can still be solidly middle class, not upper middle class, in a high cost-of-living state — the two rankings answer different questions. ## Looking Ahead: 2027 Outlook Three things I’m watching that will move these thresholds next year. First, the September 2026 Census release of 2025 ACS income data — that will reset every state median in the table. Second, inflation: with CPI running in the 2–3% range, the national band should drift up modestly, likely putting the lower bound around $145,000 in 2027 dollars. Third, wage growth in AI-exposed white-collar fields, which the WSJ piece flagged as the engine behind upper-middle-class expansion — if that cools alongside tech layoffs, tier growth could stall. This is a projection, not a guarantee — I’ll update this page when the official data lands. Frequently Asked Questions QWhat income is considered upper middle class in 2026? ANationally, roughly $133,000 to $400,000 for a family of three in 2024 dollars (about $140,000 to $420,000 in 2026 dollars), based on the definition popularized by the WSJ. Households above that band are generally classified as rich. QDoes upper middle class depend on which state you live in? ASignificantly. Applying the national multiples to Census state median incomes, the upper middle class starts around $89,000 in Mississippi but around $181,000 in Massachusetts - a gap of over $90,000 for the same economic tier. QWhat percentage of median income makes you upper middle class? AThe national band works out to roughly 1.6 to 4.8 times the median household income. With the 2024 U.S. median at $83,730, that yields the $133,000-$400,000 range. QIs $150,000 a year upper middle class? AIn most states, yes - $150,000 clears the threshold in about 40 states. In the highest-cost states (Massachusetts, New Hampshire, Maryland, Colorado, Utah, DC) it falls just below the state-adjusted bar, and in major metros it may feel closer to plain middle class. Nationally, $150,000 also sits right around the 80th income percentile. QWhat household income puts you in the top 1% nationally? A$631,500 or more, per 2024 Census Bureau CPS ASEC data. That's a much higher bar than the $400,000 'rich' line in the WSJ's upper-middle-class definition, which describes a broader, more attainable tier than the true top 1%. QIs upper middle class the same as being rich? ANo. Under the WSJ framework, rich starts above $400,000 for a family of three nationally. More importantly, income isn't wealth - sustained saving and investing (ideally 25%+ of gross income) is what converts an upper-middle-class income into lasting wealth. **Categories:** Taxes and Retirement --- ### [Trump's Tariffs in 2026: Where Things Actually Stand This Week](https://savingtoinvest.com/will-anyone-take-trumps-tariffs-seriously-anymore/) **Published:** February 21, 2026 **Author:** Andy **Content:** ### Key Takeaways - The 10% Section 122 global tariff surcharge expires by law at 12:01 a.m. on July 24, 2026; extending it requires an Act of Congress, and none is currently moving. - The Supreme Court ruled Feb. 20, 2026 that IEEPA doesn't authorize tariffs at all, striking down the original 'Liberation Day' and fentanyl-emergency tariffs - Section 122 was the administration's replacement. - Section 232 tariffs (steel/aluminum/copper at 50%, autos/semiconductors at 25%, lumber at 10%) run on separate legal authority and are unaffected by the Section 122 expiration. - USTR has been racing to finish Section 301 investigations on ~46 countries (proposed 12.5% rate) as a potential replacement once Section 122 lapses. - The overall effective US tariff rate is around 7.2% as of mid-2026, versus under 3% before the tariff program began; China's effective rate is the highest among major partners at ~23.4%. - Current 12-month recession probability estimates run 20-30% among major forecasters - elevated, but well below the 60% some forecasts suggested in April 2025. The 10% global tariff surcharge currently in effect on most US imports expires by law at 12:01 a.m. on **July 24, 2026** — this week — and there’s no extension bill moving through Congress to stop it. What happens after that is genuinely unsettled, so here’s the full timeline of how tariffs got here and what’s actually still in effect versus what’s about to lapse. ### How We Got Here: The Short Version President Trump built his 2025–2026 tariff program on the International Emergency Economic Powers Act (IEEPA) — first with tariffs on Canada, Mexico, and China tied to a declared fentanyl emergency, then with broader “reciprocal” tariffs on most other countries tied to the US trade deficit. On **February 20, 2026**, the Supreme Court ruled in [*Learning Resources, Inc. v. Trump* and *Trump v. V.O.S. Selections, Inc.*](https://www.congress.gov/crs-product/LSB11398) that IEEPA simply doesn’t give the president authority to impose tariffs at all. Both sets of IEEPA tariffs were struck down. Four days later, Trump responded with a different legal tool: Section 122 of the Trade Act of 1974, which lets a president impose a temporary import surcharge — up to 15%, for up to 150 days — to address a “large and serious” balance-of-payments problem, without needing Congress to sign off first. He set it at 10%, effective February 24, 2026. That 150-day clock runs out this week. ### What’s Actually in Effect Right Now It’s easy to lose track of which tariffs are which, so here’s the state of play as of mid-July 2026: - **Section 122 global surcharge (10%):** In effect since February 24, expires by statute July 24, 2026. A Court of International Trade panel actually invalidated this one too back in May, but that ruling only protects the two specific companies that sued — everyone else is still paying it in the meantime. - **EU-specific rate (15%):** A US-EU trade deal took effect July 1, 2026, setting a 15% all-inclusive ceiling on most EU-origin goods that replaces the Section 122 rate for that bloc specifically. - **Section 232 tariffs — untouched by any of this:** Steel, aluminum, and copper at 50%; autos and semiconductors at 25%; lumber at 10%. These rely on a completely different legal authority than IEEPA or Section 122, so the Supreme Court ruling doesn’t touch them, and they aren’t expiring this week. - **China-specific rate:** Currently the highest of any major trading partner at roughly 23.4% effective, combining several overlapping tariff actions. Combined, the overall effective US tariff rate — average duty collected across all imports — sits around **7.2%**, per the nonpartisan [Penn Wharton Budget Model](https://budgetmodel.wharton.upenn.edu/p/2026-07-13-effective-tariff-rates-and-revenues-updated-july-13-2026/). For context, the effective rate was under 3% before this tariff program began. ### What Happens When Section 122 Expires Extending Section 122 past its 150-day limit requires an actual Act of Congress — the president can’t just renew it by proclamation. As of this week, no extension bill is moving, and if anything the momentum in Congress runs the other way: the proposed “Reclaim Trade Powers Act” would *restrict* presidential tariff authority rather than extend it. The administration’s fallback plan is Section 301 — a slower, more procedural tariff authority that requires a formal investigation, but doesn’t carry Section 122’s 150-day sunset. The US Trade Representative has reportedly been racing to complete Section 301 investigations covering roughly 46 countries at a proposed 12.5% rate, timed to land right around the Section 122 expiration. Realistically, there are three ways the next few weeks could go: Section 301 tariffs are ready in time and replace Section 122 with minimal gap; there’s a temporary lapse in tariffs while Section 301 finishes; or Congress or the courts intervene in a way that changes the calculus entirely (the Court of International Trade challenge is still working through appeals). I’ll update this page as soon as one of these plays out. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) and I’ll flag it the moment the Section 122 situation resolves one way or the other.* ### Did Tariffs Actually Cause a Recession? Back when the IEEPA tariffs first hit in April 2025, forecasts were genuinely dire — JPMorgan put recession odds as high as 60% if the tariffs held. That’s not how it’s played out so far. Q1 2026 GDP grew at a 2.0% annualized rate, an improvement from Q4 2025’s 0.5%, and current 12-month recession probability estimates from major forecasters run more like **20-30%** (Goldman Sachs at 20%, RSM at 30%) — a real risk, but not the crisis some early forecasts implied. Where the tariffs have clearly shown up is in prices. The PCE price index — the Fed’s preferred inflation gauge — hit 4.5% recently, the highest reading since early 2023, and tariff pass-through into consumer goods is a major driver. Economists remain split on exactly how much of that cost lands on consumers versus importers versus foreign exporters, but most estimates put the consumer share well above half. ### What This Means for Your Wallet Right Now **Online shopping from overseas got more expensive.** The “de minimis” exemption that let low-value international packages (under $800) enter duty-free ended August 29, 2025. If you regularly buy from overseas sellers, expect real fees on top of the listed price now, not the free, fast shipping you may remember. **Farm country got a specific aid package.** The administration rolled out $12 billion in tariff-funded relief for farmers hurt by trade disruption — $11 billion in one-time Farmer Bridge Assistance payments (corn, soybeans, wheat, cotton, rice, and other row crops), which USDA has already disbursed, plus $1 billion still being finalized for specialty crops and sugar producers. **Certain goods are just going to cost more, full stop.** Steel, aluminum, and copper tariffs at 50% aren’t tied to the Section 122 drama and aren’t going anywhere — anything built with those materials (appliances, cars, construction) carries that cost structurally now, regardless of how the Section 122 expiration resolves. ### Common Issues to Watch Out For - **Confusing Section 122 with Section 232.** Section 122’s fate is genuinely uncertain this week; Section 232 tariffs (steel, aluminum, autos) are unaffected by any of this and aren’t expiring. - **Assuming a Supreme Court loss ends all tariffs.** The Court only ruled on IEEPA specifically. The administration has multiple other tariff authorities (Section 122, Section 301, Section 232) and has shown it will pivot between them. - **Panic-selling on tariff headlines.** Current recession odds (20-30% per major forecasters) are elevated but not the near-certainty some 2025 forecasts suggested — a diversified, long-term portfolio has weathered worse. - **Forgetting the de minimis change when ordering from overseas.** A lot of shoppers are still getting surprised by duties on international orders more than a year after the exemption ended. ### What I’m Watching Next The two things that matter most in the next few weeks: whether Section 301 tariffs are ready before the Section 122 gap opens up, and whether the Court of International Trade appeal produces a ruling that reshapes the administration’s options. If you hold individual stocks in tariff-exposed sectors (autos, retail, industrials), or you’re deciding whether to [harvest capital losses](https://savingtoinvest.com/capital-gains-tax-short-and-long-term-rates-plus-other-factors-to-consider/) before year-end, this is worth tracking closely rather than reacting to any single headline. If you don’t already have one, this kind of policy uncertainty is a good prompt to build or top up an emergency fund — [a high-yield savings account](https://savingtoinvest.com/high-yield-savings/) is the right place to park it while it’s sitting idle. And if your business or investments benefit from the [OBBB’s business and energy provisions](https://savingtoinvest.com/reconciling-trumps-big-beautiful-bill-bbb/), it’s worth checking whether any of that offsets tariff-related cost increases you’re seeing elsewhere. Tariffs aren’t the only thing squeezing household budgets this year, either — [gas prices](https://savingtoinvest.com/easy-ways-to-cope-with-higher-gas/) are up on a separate geopolitical driver, and if tariff headlines have you nervous about your portfolio, see my take on [why now still isn’t the time to sell](https://savingtoinvest.com/stock-market-volatility-now-is-not-time/). Frequently Asked Questions QWhen does the Section 122 tariff expire? ABy statute, at 12:01 a.m. Eastern time on July 24, 2026 - 150 days after it took effect on February 24, 2026. Only Congress can extend it, and no extension legislation is currently moving. QDid the Supreme Court strike down all of Trump's tariffs? ANo. The Court's February 2026 ruling applied specifically to tariffs imposed under the International Emergency Economic Powers Act (IEEPA) - the original 'Liberation Day' and fentanyl-emergency tariffs. Section 232 tariffs on steel, aluminum, copper, autos, and semiconductors rely on different legal authority and are unaffected. QWhat replaces the Section 122 tariffs after they expire? AIt's not yet settled. The administration has been pursuing Section 301 investigations on roughly 46 countries with a proposed 12.5% rate as a replacement, timed to complete around the Section 122 expiration. Congress could also act, though no extension bill is currently pending. QAre tariffs actually causing a recession? ANot so far, based on current data. Q1 2026 GDP grew 2.0%, and major forecasters put 12-month recession odds around 20-30% - elevated but well below the 60% some forecasts suggested when the broadest tariffs first hit in April 2025. Inflation impact has been more clear-cut, with the Fed's preferred gauge hitting 4.5% recently. QWhy did my international online order suddenly get more expensive? AThe 'de minimis' exemption that let packages under $800 enter the US duty-free ended August 29, 2025. International orders now carry duties based on country of origin, which sellers typically pass on to you. QDid farmers get help with tariff-related losses? AYes. The administration rolled out a $12 billion package, with $11 billion in Farmer Bridge Assistance payments for row-crop producers already disbursed by USDA, and $1 billion for specialty crops and sugar still being finalized. **Categories:** Taxes and Retirement --- ### [Why Even High-Income Earners Are Not That Far From The Edge of Poverty](https://savingtoinvest.com/why-even-high-income-earners-are-not/) **Published:** November 14, 2020 **Author:** Andy **Content:** ### Key Takeaways - A 2026 Goldman Sachs survey found 41% of households earning $300,000-$500,000 say they're living paycheck to paycheck - a higher share than many households earning far less - Even six-figure earners aren't immune: 40% report living paycheck to paycheck - Housing, healthcare, and child care now eat 65% of median household income, up from 51% in 2019 - squeezing high earners in expensive metros especially hard - The $200,000-$300,000 tier is actually the least stressed income band, with only 16% saying they live paycheck to paycheck - Nearly two-thirds (64%) of $200,000+ earners aren't confident they're allocating their paycheck well - this isn't just a spending problem, it's a planning gap Despite earning more than $100,000 in household income, many people still feel like they’re living month-to-month — that a job loss or sudden medical emergency could easily move them from upper-middle-class down to low income. A 2026 Goldman Sachs survey put a number on this: 41% of households earning $300,000 to $500,000 say they live paycheck to paycheck, a higher rate than plenty of households earning a fraction of that. It sounds a bit ridiculous at that income level, but it really comes down to bad financial habits, a lack of discipline, and peer group pressure — not the paycheck itself. Many high earners are corporate or self-employed professionals with a real advantage when it comes to making money — managerial roles, graduate-level education, and stock portfolios often add up to six figures. In theory, that should make it easier to stay out of debt, save more, take on calculated risk, and accumulate wealth quickly. But is that what actually happens? Often, no. I know from personal experience that I would have fallen into this group of “poor-rich” people. It was only after improving my own personal finance habits — this blog being evidence of that change — and putting a long-term savings and investment plan in place that I was able to leverage a higher-than-average household income into an actually stable future. Here’s why so many people with ample earning power still feel on the edge of poverty, and what the current data says about who’s actually struggling. Covered in this Article: [Toggle](#) - [The 2026 Data: Which High Earners Are Actually Struggling](#The_2026_Data_Which_High_Earners_Are_Actually_Struggling) - [Keeping Up With the Joneses](#Keeping_Up_With_the_Joneses) - [Easy Credit](#Easy_Credit) - [No Real Budget](#No_Real_Budget) - [Time Poor](#Time_Poor) - [Speculating Rather Than Investing](#Speculating_Rather_Than_Investing) - [How to Get Out of the Rut](#How_to_Get_Out_of_the_Rut) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## The 2026 Data: Which High Earners Are Actually Struggling The paycheck-to-paycheck pattern among high earners isn’t evenly distributed. The Goldman Sachs survey breaks it down by tier, and the results are a little counterintuitive. The $100,000–$200,000 band is the fastest-growing group of paycheck-to-paycheck households — nearly half report living that way, as housing and child-care costs absorb most of the income gain from moving up this tier. The $300,000–$500,000 band comes in at 41%, driven by lifestyle costs that scale with income (private school, larger mortgages, more expensive vacations). Oddly, the group doing best isn’t the very top — it’s households earning $200,000 to $300,000, where only 16% report living paycheck to paycheck. That band seems to sit in a sweet spot: high enough to have real breathing room, not yet stretched by the biggest-ticket lifestyle upgrades that show up above $300,000. Structurally, the big driver across all these tiers is the same: housing, healthcare, and child care together now consume 65% of median household income, up from 51% in 2019. That squeeze doesn’t disappear just because your household happens to earn more — it just shows up as a bigger mortgage, a pricier daycare, or a more expensive health plan. ## Keeping Up With the Joneses High earners are generally competing with each other — for career advancement and for status items like the biggest house, best car, or latest gadget. There’s a pervasive (if inaccurate) belief in our society that the more you earn, the more you should spend. Keeping up with the Joneses is expensive, and the cost of materialism eventually catches up, no matter how much you make. ## Easy Credit Even in a tough economy, six-figure earners find credit easy to come by — credit companies may pull back on lower income brackets, but premium card issuers like American Express and Discover court high earners aggressively. That easy access creates a false sense of security, leading people to spend well beyond what their income can support and rack up credit card debt faster than average, assuming it will be easy to pay off. High interest rates and compounding quickly debunk that assumption. ## No Real Budget Many higher earners feel like they’re making good money now and assume that will continue, which reduces the felt need to watch spending closely. Many also don’t come from particularly privileged backgrounds, and their reference point is that they’re making far more than their parents did — so they spend accordingly, without fully accounting for inflation eroding that comparison, or for the fact that the more you earn, the more you pay in taxes. A $100,000 income pretax is only around $70,000 after taxes, but many high earners focus on the top-line number instead. This isn’t just an anecdotal problem, either — a 2026 industry survey found that 64% of workers earning $200,000 or more aren’t confident they’re allocating their paycheck optimally. That’s a planning gap as much as a spending problem. *Feeling this squeeze yourself? [Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) for more on where your income actually stands and how to make it go further.* ## Time Poor Many professionals work long, stressful weeks and have little appetite left for budgeting, retirement account reviews, or other “boring” personal finance tasks when they get home — especially once kids enter the picture. Looking back, that’s a poor excuse to let finances slip, but it’s an understandable and common pattern. ## Speculating Rather Than Investing I once held a portfolio of over 20 stocks bought without any real strategy or purpose, and I likely lost more money than I made. What I was doing then wasn’t investing — it was speculating, chasing the next hot stock rather than following any real strategy, with retirement feeling too far away to prioritize. After the tech boom, I lost most of that portfolio and the savings that went with it. ## How to Get Out of the Rut In most cases, it takes an adverse event or a stark realization to turn a financial life around. For me, that catalyst was getting laid off and realizing I had only about a month of savings, despite having earned a six-figure income for more than two years. One of the lowest points in my life ended up being one of the best things that happened to me. From there, it takes focus, a genuine desire to improve, and discipline to make the shift. The road to financial freedom isn’t easy, but the underlying steps are basic: save more than you spend, and invest for the future. Being frugal isn’t the same as being a cheapskate — it’s about having the right habits and the right attitude. A recession can knock a diversified portfolio off track temporarily, but time and diversification tend to make up the difference. No matter how much you earn, the same personal finance traps are available to fall into. The key for high earners is recognizing that, building genuinely good habits, and not wasting the advantage that a higher income provides. If you want to see exactly where your household income stacks up nationally and by state, I break that down in my [upper middle class income guide](https://savingtoinvest.com/are-you-upper-middle-class/). If a layoff or a sudden loss of income is part of what’s on your mind, our [guide to preparing for a potential layoff](https://savingtoinvest.com/tips-on-preparing-for-potential-job/) and our broader [tech layoffs and AI shift guide](https://savingtoinvest.com/tech-layoffs-and-the-ai-shift-what-ongoing-job-cuts-mean-for-your-career-and-wallet/) cover the financial-resilience side of that risk directly. It’s a good reminder that income and wealth aren’t the same thing — see my breakdown of [this year’s World Wealth Report](https://savingtoinvest.com/world-wealth-report-ten-million/) for how many high earners actually convert income into real net worth. ## Common Issues to Watch Out For A few patterns I see repeatedly among high earners who feel financially stretched: - **Confusing gross income with spending power.** A $300,000 household in a high-tax state can lose 35-40% to federal and state taxes before a dollar is spent — budgeting off the top-line number is a common mistake. - **Letting fixed costs scale with income.** Housing and childcare costs that “made sense” at a lower income can quietly become the majority of the budget after a raise, especially in expensive metros. - **Treating a raise as permission to upgrade everything at once.** Spreading a raise across a bigger mortgage, a nicer car, and pricier vacations simultaneously is how lifestyle creep compounds fastest. - **Not having a real emergency fund despite a high income.** High earners often assume their income itself is the safety net, until a layoff or medical event proves otherwise. - **Skipping the “boring” planning work.** The 64% of $200K+ earners unsure about their paycheck allocation usually aren’t undisciplined – they just haven’t sat down and built an actual plan. Frequently Asked Questions QWhat percentage of high-income earners live paycheck to paycheck? AA 2026 Goldman Sachs survey found 41% of households earning $300,000-$500,000 and 40% of six-figure earners overall report living paycheck to paycheck - though the $200,000-$300,000 tier fares much better, at only 16%. QWhy do high earners still feel financially stressed? AThe main drivers are lifestyle creep (spending that rises with income), fixed costs like housing, healthcare, and child care that now consume 65% of median household income (up from 51% in 2019), and a lack of a real budget or emergency fund despite strong earnings. QWhich income tier is actually the least financially stressed? ASomewhat counterintuitively, it's the $200,000-$300,000 band, where only 16% report living paycheck to paycheck - lower than both the $100,000-$200,000 tier and the $300,000-$500,000 tier. QDoes a higher income guarantee financial security? ANo. Income provides the raw material for wealth, but security comes from spending below your means, maintaining an emergency fund, and investing consistently - not from the income level itself. QWhat's the fastest-growing group of paycheck-to-paycheck households? AThe $100,000-$200,000 income band, where nearly half of households now report living paycheck to paycheck as housing and child-care costs absorb most of the gains from moving into that tier. **Categories:** Personal Finance and Money **Tags:** credit, income, saving, wealth --- ### [Apartment Rental Tips for 2026: What to Check Before You Sign a Lease](https://savingtoinvest.com/apartment-rental-tips-and/) **Published:** January 3, 2009 **Author:** Andy **Content:** ### Key Takeaways - The national average apartment rent was $1,742/month in June 2026, with the rental vacancy rate around 7.2-7.3% - among the highest in years, giving renters more room to negotiate in many markets. - The 30% rule (rent + utilities ≤ 30% of gross monthly income) is a reasonable starting point, but local market conditions vary enormously - some cities are seeing 7%+ rent growth while others are seeing rents fall. - Always inspect the actual unit you'll rent in person before signing - check plumbing, water pressure, pest signs, window seals, and cell/internet reception. - Get any promised repairs in writing before you sign, not as a verbal agreement. - With vacancies elevated, it's worth asking for a lower rent, a concession, or reduced fees rather than assuming the listed price is final. The national average apartment rent was **$1,742 a month** in June 2026, up slightly from May, according to [Apartments.com’s rent report](https://www.apartments.com/blog/apartments.com-national-rent-trends-report), while the [Census Bureau’s rental vacancy rate](https://www.census.gov/housing/hvs/files/currenthvspress.pdf) has climbed to around **7.2–7.3%** — one of the highest readings in years. That combination (rents drifting up, vacancies also up) means landlords in a lot of markets have more incentive to negotiate than they did a few years ago, so it’s worth actually asking rather than assuming the listed price is final. I’ve rented for years before eventually buying, and I’ve seen the good and bad sides of apartment living. Here’s what I actually check before signing a lease, plus how to figure out what you can afford in the first place. ### How Much Rent Can You Actually Afford? The standard starting point is the 30% rule: multiply your gross (pre-tax) monthly income by 0.30 to get a rough ceiling for rent plus utilities. **Example:** If you earn $60,000 a year, that’s $5,000 a month gross, so the 30% rule puts your rent-plus-utilities ceiling around $1,500 a month. Treat this as a starting point, not gospel. It’s based on gross income, so your actual take-home percentage will run higher than 30%, and it doesn’t account for your specific debt payments, commute costs, or how expensive your particular metro is. Rent growth also varies wildly by market right now — some cities like San Francisco have seen rents climb over 7% in the past year, while others like San Antonio have actually seen rents fall around 5% — so a national average is only a starting reference point, not your local reality. If you’re weighing renting against buying in your area, it’s worth running the numbers on [current mortgage rates and home prices](https://savingtoinvest.com/why-rising-rates-will-boost-rather-than-lower-home-prices-and-purchases/) too, since the math between the two shifts as rates and rents both move. Your credit score also factors into which apartments will approve you and at what deposit — see my guide on [breaking down and improving your FICO score](https://savingtoinvest.com/breaking-down-and-improving-your-fico/) if you’re not sure where you stand before you apply. ### Finding the Right Apartment Start with a clear list: where you want to live (location, schools, commute), your minimum requirements (bedrooms, parking, in-unit laundry), your monthly budget from above, and how long you plan to stay. Once you have that, popular rental sites and apps will let you set saved searches with daily or weekly alerts so new listings come to you instead of the other way around. When you’ve narrowed it down, visit the property in person to get a feel for upkeep and community, and ask what comparable units nearby are renting for — that gives you a quick read on whether the listed price is fair or negotiable, especially in a softer market like this one. Give yourself real time to find the right place. In tighter markets it can take a couple of months to land the right unit at the right price, so build that into your moving timeline. ### The Apartment Inspection Most people put all their effort into finding a place and none into actually verifying it before they move in. It’s far easier — and cheaper — to get problems fixed before signing than after. Walk through the actual unit you’ll be renting, not a staged model, and get any needed repairs in writing before you sign. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) for more practical money guides like this one.* ### What to Check During Your Walkthrough - **Safety features.** Confirm smoke detectors and fire extinguishers are present and working, both inside the unit and in common hallways. - **Plumbing.** Check faucets, toilets, and under-sink pipes for leaks or water staining. - **Water pressure and hot water.** Run the shower during your walkthrough and see how it holds up by the time you finish the rest of your tour. - **Water heater and furnace.** Look for rust, debris, or chipping around either unit — signs of a leak or a unit near the end of its life. - **Appliances and laundry.** Test everything in-unit, and if there’s a shared laundry room, check that it’s clean, well-lit, and limited to residents. - **Pests.** Check floors, cabinets, and closets for any signs of insects or rodents. - **Windows.** Run your hand along the edges to feel for drafts — poor seals can meaningfully raise your heating and cooling costs. - **Ceilings and walls.** Look for water stains, peeling paint, or discoloration that could indicate a leak or mold. - **Locks.** Confirm you’ll get at least two working keys for every lock, and that all locks and hinges feel solid. - **Cell signal and internet.** Check your carrier’s reception in the unit, and confirm what internet providers actually serve the building. Don’t rush this. If you can, walk through at a different time of day than your first visit to get a sense of noise and neighborhood activity — a unit that’s quiet at 2pm on a Tuesday can be a different story on a Friday night. ### Common Issues to Watch Out For - **Skipping the in-person walkthrough because photos looked great.** Photos hide a lot — staged listing photos in particular. Always walk the specific unit you’d actually be renting. - **Not getting repair promises in writing.** A verbal promise from a leasing agent to “fix that before you move in” means little without it in your lease or a written addendum. - **Assuming the listed rent is non-negotiable.** With vacancy rates elevated in many markets, it’s worth asking for a small reduction, a free month, or reduced fees — especially in softer markets. - **Ignoring the security deposit terms.** Know exactly what conditions get your deposit back in full, and photograph the unit’s condition on move-in day as your own record. - **Forgetting renters insurance.** It’s usually inexpensive relative to what it protects, and some landlords require proof of a policy before handing over keys. Once you’ve moved in, the [budgeting side of apartment life](https://savingtoinvest.com/dont-move-the-couch-kid-a-dads-guide-to-saving-money-on-your-first-apartment/) — furnishing cheaply, splitting shared costs with roommates, and avoiding the small recurring fees that add up — matters just as much as what you paid to get in the door. And whatever you’re setting aside for your security deposit or next move, park it in [a high-yield savings account](https://savingtoinvest.com/high-yield-savings/) rather than letting it sit idle in checking. Frequently Asked Questions QHow much rent can I afford in 2026? AThe standard starting point is the 30% rule - multiply your gross monthly income by 0.30. For example, $60,000/year in gross income works out to roughly $1,500/month for rent and utilities combined. Adjust based on your debt, commute costs, and local market conditions. QWhat is the average apartment rent right now? AThe national average apartment rent was $1,742 a month as of June 2026, essentially flat month-over-month, though this varies enormously by city and region. QCan I negotiate my apartment rent? AIt's increasingly worth trying. The national rental vacancy rate is around 7.2-7.3%, one of the highest levels in years, which gives renters more leverage to ask for a lower rent, a move-in concession, or waived fees than in a tighter market. QWhat should I check before signing an apartment lease? AWalk through the actual unit (not a model), and check smoke detectors, plumbing, water pressure and hot water, the furnace/water heater, pest signs, window seals, and cell/internet reception. Get any promised repairs in writing before you sign. QDo I need renters insurance? AIt's generally inexpensive relative to the protection it provides, and many landlords now require proof of a policy before you can move in. Check your specific lease terms. QHow long does it typically take to find an apartment? AIn tighter rental markets, it can take a couple of months to find the right unit at the right price, so it's worth starting your search well before your planned move date. **Categories:** Real Estate and Mortgages --- ### [When to Claim Social Security in 2026: The Real Math for Singles, Couples, and Late Filers](https://savingtoinvest.com/claiming-social-security-benefits-later/) **Published:** October 6, 2009 **Author:** Andy **Content:** ### Key Takeaways - Full retirement age (FRA) is 67 for anyone born in 1960 or later - the decades-long phase-in fully completes in 2026. - Claiming at 62 permanently locks in about 70% of your full benefit; waiting until 70 locks in 124% (delayed retirement credits add 8% per year past FRA). - If you're past FRA and haven't filed yet, you can request up to 6 months of retroactive back pay as a lump sum - but it permanently rolls your benefit back by up to 4%. - Married couples often come out ahead when the lower earner files early for household income and the higher earner delays to 70, since the survivor keeps the larger of the two checks for life. - The maximum possible benefit in 2026 is $5,181/month - but it requires 35 years of earnings at or above the taxable wage base ($184,500 in 2026) and waiting until age 70. Only about 6% of workers qualify. Claim Social Security at 62 and you lock in about 70% of your full benefit for life. Wait until 70, and you lock in 124% instead. That’s the single biggest financial decision most retirees make, and unlike almost everything else in retirement planning, you don’t get a do-over. I get more questions about “when should I file” than almost any other Social Security topic. There’s no universal right answer, but there is real math behind it — for singles, for married couples, and for a couple of lesser-known rules that can change the calculation entirely. Covered in this Article: [Toggle](#) - [The Core Decision: 62 vs. 67 vs. 70](#The_Core_Decision_62_vs_67_vs_70) - [The Retroactive Lump-Sum Option Most People Don’t Know About](#The_Retroactive_Lump-Sum_Option_Most_People_Dont_Know_About) - [How Married Couples Can Maximize Their Combined Benefit](#How_Married_Couples_Can_Maximize_Their_Combined_Benefit) - [The $5,181 Maximum Benefit: Who Actually Qualifies](#The_5181_Maximum_Benefit_Who_Actually_Qualifies) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) ## The Core Decision: 62 vs. 67 vs. 70 Social Security lets you claim retirement benefits any time between age 62 and 70. Your monthly amount depends entirely on when you start. Your full benefit — 100% of what you’ve earned — is paid at your full retirement age (FRA). For 2026, FRA is 67 for everyone born in 1960 or later, the final step in a phase-in that’s been running since the 1980s. Claim before FRA and your benefit is reduced permanently, per [SSA’s early claiming rules](https://www.ssa.gov/benefits/retirement/planner/agereduction.html). The formula is 5/9 of 1% for each of the first 36 months early, then 5/12 of 1% for any additional months beyond that. Claim at 62 — 60 months before a 67 FRA — and you’re left with about 70% of your full benefit, for life. Wait past FRA and the opposite happens: [delayed retirement credits](https://www.ssa.gov/benefits/retirement/planner/delayret.html) add 8% per year, up to age 70. Wait the full 3 years past a 67 FRA and your benefit grows by 24%, landing at 124% of your full amount. **Sarah**, whose full benefit at 67 would be $2,400/month, illustrates the spread. Claim at 62 and she gets about $1,680/month. Wait until 70 and she gets roughly $2,976/month — a permanent 77% gap between the earliest and latest claiming ages, from the exact same earnings record. There’s no single right answer here. If you’re in poor health, need the income now, or simply want to stop working and start collecting, claiming early can be the right call even knowing the smaller check. If you’re healthy, have other income to bridge the gap, and expect to live well into your 80s or beyond, delaying usually pays off — the “break-even age” where total lifetime payments cross over is typically around 78–80. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) and I’ll flag it if SSA changes any of these claiming rules.* ## The Retroactive Lump-Sum Option Most People Don’t Know About Here’s a rule that surprises a lot of readers who’ve already passed their FRA without filing: you don’t have to choose between “start now” and “start from today going forward.” SSA lets you backdate your claim. If you’re at least one month past FRA and haven’t filed, you can request retroactive benefits back to your FRA (or up to 6 months, whichever is shorter) — paid out as a single lump sum. File 6 months or more past FRA, and you can claim the full 6 months of back pay. The catch: taking the lump sum rolls your official filing date backward by the same number of months, and your ongoing monthly benefit is calculated as if you’d filed that much earlier. Six months of retroactive back pay permanently reduces your monthly benefit by 6 × 0.667% — a flat 4% — for as long as you collect. **David** turned 67 (his FRA) in late 2025 but kept working and didn’t file. By July 2026, he’s 7 months past FRA. He can request the maximum 6 months of retroactive benefits — using 2026’s average benefit of roughly $2,076/month, that’s a lump sum of about $12,456 — but his ongoing monthly check is permanently 4% lower than it would have been if he’d simply filed as of today with no lump sum. Whether that trade makes sense depends on what you’d do with the cash. A near-term expense (medical bill, home repair, paying off debt before retirement) can make the lump sum worth the permanent haircut. If you don’t need the money now, skipping the lump sum and taking your full, un-reduced ongoing benefit is usually the better math, especially if you also plan to keep delaying past FRA for the 8%/year credit. One more wrinkle: the retroactive lump sum is taxable in the year you receive it, all at once. Because it can bump you into a higher taxable-benefit bracket for that year, some retirees find it’s worth spreading the request into a smaller number of retroactive months rather than the full 6, or timing it deliberately with a lower-income year. ## How Married Couples Can Maximize Their Combined Benefit Claiming strategy gets more interesting — and more valuable — once a spouse is in the picture. The math isn’t about each person maximizing their own check independently; it’s about maximizing the household’s total lifetime income, including what happens after one spouse passes away. The most common approach that comes out ahead for couples with a real earnings gap: the **lower earner files early** (as early as 62) to bring in household income sooner, while the **higher earner delays to 70** to lock in the largest possible check. Why delay the higher earner specifically? Because of survivor benefits. When one spouse dies, the survivor doesn’t keep both checks — they keep whichever of the two is larger, and the other stops. Delaying the higher earner’s claim to 70 means that larger check is as large as it can possibly be, and it’s the one that protects the surviving spouse for the rest of their life, however long that turns out to be. **Mark and Linda** illustrate the ceiling case. Both have full benefits of $5,181/month at 67 — the 2026 maximum, requiring 35 years each at or above the $184,500 taxable wage base. If both delay to 70, their combined household benefit reaches $10,362/month, or about $124,000/year. Very few couples hit that exact number (it requires two maximum earners), but the strategy underneath it — delay the higher earner, let the lower earner claim sooner if household cash flow requires it — scales down to any income level. **A note on divorced spouses:** if you were married at least 10 years and are currently unmarried, you may be able to claim a spousal benefit on an ex-spouse’s record — up to 50% of their full benefit at your own FRA — without affecting what they or their current spouse receive. It’s a commonly missed benefit worth checking if it applies to you. For a deeper look at the specific age milestones that drive all of this — 62, 67, and 70 — see my [guide to key retirement ages for Social Security, 401(k), and IRAs](https://savingtoinvest.com/retirement-ages-and-eligilbility-rules-for-receiving-401k-ira-and-social-security-beneifts/). ## The $5,181 Maximum Benefit: Who Actually Qualifies Every year, headlines about the “new maximum Social Security check” circulate — for 2026, that number is $5,181/month, for someone who files at exactly age 70. It’s real, but the bar to reach it is much higher than most people assume. To hit the max, you need both of these, simultaneously: - **35 years of earnings at or above the Social Security taxable wage base** — $184,500 in 2026. Social Security calculates your benefit off your highest 35 years of earnings (adjusted for wage growth), so any year below the cap — or any year missing entirely — pulls your average down. - **Filing at age 70**, capturing the full 24% delayed retirement credit on top of your FRA benefit. Miss either condition and you’re not getting $5,181. Retire at 67 instead of 70 with an otherwise maxed-out earnings record, and your benefit drops to roughly $4,152 — still substantial, but well short of the ceiling. Have even a handful of below-cap earning years mixed into your 35-year average, and the gap widens further. The Committee for a Responsible Federal Budget estimates only about 1.6% of beneficiaries collect $50,000+ a year in Social Security — a rough proxy for how rare the true maximum actually is. For most workers, the more useful benchmark is the **average** benefit, which sits around $2,076/month in 2026 after the 2.8% COLA increase. See my [Social Security COLA tracker](https://savingtoinvest.com/social-security-tax-and-cost-of-living-adjustment-cola/) for the full breakdown of how this year’s raise was calculated. ## Common Issues to Watch Out For I hear the same handful of misunderstandings from readers every time claiming strategy comes up. **Fixating on the break-even age as the whole decision.** Break-even math (the age where cumulative payments from delaying finally overtake cumulative payments from claiming early) is a useful data point, not the whole answer. Health, other income sources, and whether you’re still working all matter just as much. **Not knowing the retroactive lump-sum option exists.** Plenty of people who file a few months to a year past FRA don’t realize they can backdate the claim — or don’t realize doing so permanently reduces their ongoing check. Know the trade-off before you request it. **Both spouses claiming at the same age by default.** Filing together at 62, or both waiting until 70, is rarely optimal for a couple with an earnings gap. Run the numbers on staggering instead. **Assuming an early claim can be “fixed” later.** SSA does allow a one-time withdrawal of your application within 12 months of filing if you repay everything you’ve received — but past that window, an early claim’s reduction is permanent. There’s no do-over after year one. **Confusing delayed credits with the annual COLA.** The 8%/year delayed retirement credit is separate from and in addition to each year’s cost-of-living adjustment. Waiting isn’t just “keeping up with inflation” — it’s a real, guaranteed increase to your base benefit. ## Looking Ahead: 2027 Outlook The FRA phase-in that’s defined Social Security claiming for over three decades fully completes with the 2026 birth-year cohort — everyone born in 1960 or later has an FRA of 67, and that’s where it stays going forward. No further FRA increases are currently scheduled. What will move for 2027: the taxable wage base (currently $184,500 for 2026, typically rising a few thousand dollars with wage growth) and the COLA, which the latest estimates put around 3.8% based on inflation data through mid-2026. A higher wage base means the bar for a “maximum earner” year climbs slightly too, and the average and maximum benefit figures will both adjust once COLA is finalized. The Social Security Administration typically announces the following year’s wage base, COLA, and maximum benefit figures in October, with the finalized COLA usually confirmed in mid-October alongside the September CPI-W data. I’ll update this page once the 2027 numbers are official. I’ve also written more about [Social Security Payment Dates: Schedule by Birth Date](https://savingtoinvest.com/social-security-payment-schedule-by-birth-date/) and [Changes to Your 2026 Medicare Coverage — Plus the 2027 Part B Premium Outlook](https://savingtoinvest.com/changes-to-your-2026-medicare-coverage/). Frequently Asked Questions QWhat is the ideal age to claim Social Security? AThere's no single ideal age - it depends on your health, other income, and whether you're married. As a rule of thumb, claiming at 62 locks in about 70% of your full benefit for life, while waiting until 70 locks in 124%. Most people land somewhere in between based on their specific situation. QHow much do I lose by claiming Social Security at 62 instead of 67? AAbout 30%. Claiming 60 months before a full retirement age of 67 permanently reduces your monthly benefit to roughly 70% of what you'd get by waiting until 67, and that reduction stays in place for life (aside from annual COLA increases). QWhat is the Social Security retroactive lump-sum payment? AIf you're past your full retirement age and haven't filed yet, you can request up to 6 months of back benefits paid as a single lump sum. Doing so backdates your filing date by that many months, which permanently reduces your ongoing monthly benefit by up to 4%. QHow can married couples maximize their Social Security benefits? AThe most common strategy for couples with an earnings gap is having the lower earner claim early for household income while the higher earner delays to age 70. This maximizes the survivor benefit, since the surviving spouse keeps the larger of the two checks for the rest of their life. QWhat is the maximum possible Social Security benefit in 2026? A$5,181/month, available only to someone who earned at or above the taxable wage base ($184,500 in 2026) for at least 35 years and who waits until age 70 to file. Fewer than 2% of beneficiaries collect anywhere near this level. QCan I change my mind after claiming Social Security early? AYou can withdraw your application within 12 months of filing if you repay all benefits received, effectively undoing the claim. After that 12-month window, an early claim's benefit reduction is permanent. QDoes delaying Social Security to 70 make sense if I'm not in perfect health? ANot necessarily. Delaying only pays off if you live long enough to pass the break-even age, typically around 78-80. If you have health concerns that make a shorter lifespan more likely, claiming earlier - and getting more years of guaranteed income - can be the better choice. **Categories:** Taxes and Retirement **Tags:** retirement, Social Security --- ### [Mortgage Rates and Home Prices in 2026: Why 6.5% Rates Haven't Cooled the Market (Plus the 2027 Outlook)](https://savingtoinvest.com/why-rising-rates-will-boost-rather-than-lower-home-prices-and-purchases/) **Published:** June 28, 2013 **Author:** Andy **Content:** ### Key Takeaways - The 30-year fixed mortgage rate is averaging about 6.5%-6.7% in late July 2026 (Freddie Mac PMMS: 6.58% for the week ending July 23); the 15-year fixed is around 5.9%-6.0%. - The Federal Reserve has held its benchmark rate at 3.50%-3.75% since early 2026 - no cut at the most recent meeting, and some economists now expect no change until December. - The median existing home price is $440,600 (June 2026), up 1.8% year-over-year, according to the National Association of Realtors (NAR). - Housing inventory sits at 4.6 months of supply - still on the tight side of the 5-6 months considered a balanced market, which is a major reason prices haven't fallen despite weaker affordability. - The biggest reason prices have stayed firm: the 'lock-in effect' - millions of homeowners refinanced or bought at 3%-4% rates in 2020-2021 and are reluctant to sell and give that up, which keeps inventory constrained. - Most 2027 forecasts converge in the 6.2%-6.5% range for the 30-year fixed, with no major forecaster currently predicting a return to sub-5% rates. The average 30-year fixed mortgage rate is running about 6.5%–6.7% as of late July 2026. The median existing home price is $440,600, up 1.8% from a year ago. Those two facts sitting next to each other confuse a lot of people — rates are more than double where they were in 2021, so why haven’t prices come down? I get this question constantly, so here’s the actual mechanism behind it, the current numbers on both sides, and what’s likely ahead for 2027. Covered in this Article: [Toggle](#) - [Where Rates and Prices Stand Right Now (July 2026)](#Where_Rates_and_Prices_Stand_Right_Now_July_2026) - [Why Home Prices Haven’t Fallen Despite Rates More Than Doubling Since 2021](#Why_Home_Prices_Havent_Fallen_Despite_Rates_More_Than_Doubling_Since_2021) - [What Higher Rates Actually Cost You](#What_Higher_Rates_Actually_Cost_You) - [15-Year vs. 30-Year: Which Makes Sense at Today’s Rates](#15-Year_vs_30-Year_Which_Makes_Sense_at_Todays_Rates) - [Should You Refinance Right Now?](#Should_You_Refinance_Right_Now) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) ## Where Rates and Prices Stand Right Now (July 2026) Mortgage rates have been essentially flat for weeks. Freddie Mac’s Primary Mortgage Market Survey put the 30-year fixed at 6.58% for the week ending July 23, 2026, with other trackers (Bankrate, NerdWallet) reporting 6.7%–6.75% depending on methodology and the day sampled. The 15-year fixed sits roughly half a point to three-quarters of a point lower, around 5.9%–6.0%. Rates have crept up slightly over the summer, largely on renewed inflation concerns and geopolitical tension. That’s the opposite direction a lot of buyers were hoping for going into 2026. On the price side, NAR’s June 2026 existing-home sales report put the median sale price at $440,600, up 1.8% year-over-year. Existing-home sales actually dipped 2.4% from May to June, but were still up 2.8% from a year earlier — a market that’s cooling in pace of transactions without cooling in price. The Case-Shiller National Home Price Index (a different measure — it tracks repeat sales of the same homes rather than a raw median) shows the same story: it hit 345.43 in April 2026, up from 341.91 in March, continuing a steady climb rather than any meaningful correction. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) and I’ll update this page as new rate and price data comes in each month.* ## Why Home Prices Haven’t Fallen Despite Rates More Than Doubling Since 2021 This is the part that trips people up. Basic intuition says higher rates should cool demand and pull prices down. That’s not what’s happened, and the reason has a name: the **lock-in effect**. During 2020–2021, tens of millions of homeowners either bought or refinanced at rates in the 2.5%–4% range. Selling that home today means giving up that rate and financing a new one at roughly double it. For a lot of owners, that math simply doesn’t work, even if they’d otherwise consider moving. The result shows up directly in the inventory numbers: 4.6 months of supply as of June 2026. Anything under about 5–6 months is generally considered a seller’s market — not enough homes listed relative to buyer demand to put real downward pressure on prices. **Consider Priya**, who refinanced her home in 2021 at 3.2%. She and her husband have talked about moving to a bigger place now that they have a second child, but a comparable home at today’s ~6.6% rate would push their monthly payment up by more than $1,100 even before accounting for the higher purchase price. They’ve decided to stay and renovate instead — a decision playing out in millions of households at once, and the reason so few “move-up” homes are hitting the market. Demand hasn’t collapsed either. Population growth, household formation, and a chronic multi-year shortfall in new home construction (a separate, longer-running issue than this rate cycle) all keep a floor under prices even as the pace of sales slows. There’s a legislative angle worth watching too: the [21st Century ROAD to Housing Act](https://savingtoinvest.com/2026-housing-affordability-bill-what-the-21st-century-road-to-housing-act-means/), signed into law in July 2026, targets some of the supply-side bottlenecks behind this — though it’s too early to say how much it actually moves the inventory needle. ## What Higher Rates Actually Cost You The rate difference isn’t abstract — it’s real money every month. On a $400,000 loan: RateMonthly Principal & Interest (30-yr)Total Interest Paid Over Life of Loan3.5%$1,797$247,2206.5%$2,528$510,1537.0%$2,661$558,313 Going from a 2021-era 3.5% rate to today’s roughly 6.5% adds about $731 to the monthly payment on the same loan amount — and more than doubles the total interest paid over 30 years. That gap is the entire lock-in effect in one number. ## 15-Year vs. 30-Year: Which Makes Sense at Today’s Rates With the 15-year fixed running around 5.9%–6.0% versus roughly 6.5%–6.7% for the 30-year, the rate gap between the two terms is smaller than it’s been in some past cycles — but the payment difference from the shorter amortization period is still substantial, since you’re paying off the loan in half the time. A 15-year loan builds equity dramatically faster and saves a large amount in total interest, but the higher required monthly payment is a real affordability constraint for a lot of buyers. See my [full 15-year vs. 30-year mortgage comparison](https://savingtoinvest.com/15-year-vs-30-year-mortgage-which-is-better/) for the detailed math on both. ## Should You Refinance Right Now? If you bought or last refinanced above roughly 7%–7.5%, today’s rates may be worth a look — but for the millions locked in at 3%–4%, there’s currently no rate-driven reason to refinance. The math only starts to work again if rates fall meaningfully below your current one. I’ve written a full breakdown of when refinancing actually pays off after closing costs: [Should I Refinance My Mortgage and Do I Qualify?](https://savingtoinvest.com/should-i-refinance-my-mortgage-and-do-i-qualify/) On the flip side, if you’re sitting on substantial equity and weighing a sale instead, it’s worth remembering the [$250,000/$500,000 capital gains exclusion on a home sale](https://savingtoinvest.com/taxes-and-gains-i-can-exclude-when-selling-my-home/) hasn’t been adjusted for inflation since 1997 — a bigger tax bite for long-tenured owners in today’s higher-priced market than a lot of sellers expect. ## Common Issues to Watch Out For **Assuming rates and prices move in opposite directions.** They can, but they haven’t this cycle — inventory constraints from the lock-in effect have been the stronger force. Don’t assume a rate drop automatically means a price drop, or vice versa. **Comparing today’s rate to a friend’s 2021 rate and assuming something’s wrong.** A 3%–4% rate from 2020–2021 was a historic low tied to emergency-era Fed policy, not a normal baseline. Today’s ~6.5% is closer to the long-run historical average than that period was. **Underestimating the real cost of “waiting for rates to drop.”** If prices keep rising while you wait for a rate cut that may not materialize for years, the combination can leave you worse off than buying sooner at a higher rate and refinancing later if rates do fall. **Confusing the Case-Shiller Index with a dollar figure.** The index (345.43 in April 2026) measures relative price appreciation on repeat sales, not an actual home price. Use NAR’s median sale price ($440,600) or a local comp for actual dollar figures. **Not shopping multiple lenders.** Freddie Mac’s own research has repeatedly found meaningful rate variation between lenders for the same borrower profile — getting quotes from at least 3–4 lenders is one of the few genuinely free ways to lower your rate. ## Looking Ahead: 2027 Outlook Forecasters are converging, but not agreeing exactly, on where rates go next. Fannie Mae expects the 30-year fixed around 6.4% in Q1 2027, easing slightly to 6.3% in Q2. The Mortgage Bankers Association projects a 2027 average closer to 6.5%. Wells Fargo’s forecast is a bit more optimistic at 6.2%. The National Association of Home Builders expects rates to dip under 6% at some point in 2027, though its own economists don’t expect that to hold consistently until late in the year. None of these forecasts call for a return to 2020–2021-era rates. The Fed’s benchmark rate has held at 3.50%–3.75% since early 2026, and with inflation still running hotter than the Fed’s target, further cuts anytime soon aren’t guaranteed — some economists now think the Fed holds steady until December 2026 at the earliest. On the price side, expect the same story to continue into 2027 unless inventory meaningfully improves: as long as months-of-supply stays in the 4–5 range and the lock-in effect keeps existing homeowners on the sidelines, prices are more likely to keep drifting up than to correct downward, even if sales volume stays soft. I’ll update this page monthly as new Freddie Mac and NAR data comes in, and immediately if the Fed changes course. [Subscribe here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get notified. Frequently Asked Questions QWhat is the average mortgage rate right now in 2026? AAs of late July 2026, the 30-year fixed mortgage rate is averaging about 6.5%-6.7% depending on the source (Freddie Mac's PMMS reported 6.58% for the week ending July 23). The 15-year fixed is running around 5.9%-6.0%. QWhy haven't home prices dropped even though mortgage rates are so much higher than in 2021? AMainly the 'lock-in effect.' Millions of homeowners refinanced or bought at 3%-4% rates in 2020-2021 and don't want to give that up by selling, which keeps housing inventory tight (4.6 months of supply as of June 2026). Low inventory keeps upward pressure on prices even as higher rates reduce how much buyers can afford. QWhat is the median home price in the U.S. right now? A$440,600, based on NAR's June 2026 existing-home sales report - up 1.8% from a year earlier. QWill mortgage rates go down in 2027? AMost major forecasters (Fannie Mae, the Mortgage Bankers Association, Wells Fargo, NAHB) expect the 30-year fixed to average somewhere between 6.2% and 6.5% in 2027 - modestly lower than today in some forecasts, but not a return to pre-2022 levels. QShould I wait for mortgage rates to drop before buying a home? AThere's no way to know for certain when or if rates will drop meaningfully. If home prices keep rising while you wait, the combination of a higher price and a similar rate can leave you worse off than buying now and refinancing later if rates do fall. QIs now a good time to refinance my mortgage? AOnly if your current rate is meaningfully above today's roughly 6.5%-6.7% - generally a full percentage point or more once you account for closing costs. If you're already locked in below 5%, there's currently no rate-driven reason to refinance. QWhat's the difference between the Case-Shiller Index and the median home price? AThe median home price (like NAR's $440,600 figure) is an actual dollar amount based on sales in a given month. The Case-Shiller Index measures price appreciation on repeat sales of the same homes over time and is reported as an index value, not a dollar figure - useful for tracking trends, not for comparing to your own home's value directly. **Categories:** Real Estate and Mortgages **Tags:** Economy, home, housing, prices, Rates, renting --- ### [Remote Work Tax Issues in 2026: State Taxes, Reciprocity, and the Home Office Deduction](https://savingtoinvest.com/remote-work-tax-issues-to-consider-when-filing-your-return/) **Published:** March 30, 2023 **Author:** Andy **Content:** ### Key Takeaways - OBBBA permanently eliminated the home office deduction for W-2 remote employees starting in 2026 - even if your employer requires you to work from home, you can no longer deduct rent, utilities, or mortgage interest allocated to your workspace. Self-employed workers still can. - Seven states enforce a 'convenience of the employer' rule in 2026 (New York, Pennsylvania, Delaware, Arkansas, Connecticut, Nebraska, and Massachusetts) - meaning your employer's state can still tax your income even if you never set foot there, unless you're remote for the employer's necessity rather than your own convenience. - About 30 state-pair reciprocity agreements across 16 states plus DC let cross-border commuters pay tax only in their home state - but reciprocity and the convenience rule are different mechanisms, and living in a reciprocal state doesn't protect you from a convenience-rule state. - Employees working for companies based in a different country face treaty-based rules to avoid double taxation, plus potentially VAT/GST obligations depending on how the arrangement is structured - this gets complicated quickly and usually warrants a professional. - Multi-state remote work creates real compliance obligations for employers too - unemployment insurance registration and withholding in every state where employees actually live and work - which is worth knowing if you're negotiating a remote arrangement with a smaller employer unfamiliar with multi-state payroll. Remote work didn’t just change where people do their jobs — it created a genuinely more complicated tax picture for millions of workers who now live in a different state (or country) than their employer. Here’s what actually matters when you file. Covered in this Article: [Toggle](#) - [Which State Actually Taxes Your Income?](#Which_State_Actually_Taxes_Your_Income) - [Can I Deduct a Home Office in 2026?](#Can_I_Deduct_a_Home_Office_in_2026) - [International Remote Work](#International_Remote_Work) - [What Employers Have to Manage](#What_Employers_Have_to_Manage) - [Looking Ahead: 2027](#Looking_Ahead_2027) ## Which State Actually Taxes Your Income? When you worked from an office, the answer was simple: the state where the office sat. Remote work broke that assumption, and two separate mechanisms now determine the answer. ### State Reciprocity Agreements Roughly **30 reciprocity agreements** exist across **16 states plus Washington, D.C.**, allowing residents who work across a state line to pay income tax only in their home state rather than filing (and owing) in both. Notable corridors include **New Jersey-Pennsylvania**, **Illinois-Wisconsin**, and the **Virginia-D.C.-Maryland** triangle. If you live in one state and commute (even occasionally) to work in a neighboring reciprocal state, you typically file an exemption certificate with your employer so they withhold only for your home state. ### The “Convenience of the Employer” Rule Reciprocity doesn’t help you if the state in question enforces a **convenience of the employer rule** instead. Under this rule, if your employer is based in one of these states but you work remotely from another state **by your own choice** rather than your employer’s operational necessity, the employer’s state can still tax your income — even though you never physically worked there. For 2026, states enforcing a convenience rule include **New York, Pennsylvania, Delaware, Arkansas, Nebraska, Massachusetts, and Connecticut** (with some variation in how strictly each applies it — Connecticut and New Jersey limit their versions to residents of other convenience-rule states, effectively a retaliatory measure rather than a blanket rule). If your employer is based in one of these states, don’t assume that working from home in a different state automatically means you owe nothing to the employer’s state — check the specific rule and, if it’s ambiguous, get a professional opinion, since misclassifying this can mean owing back taxes and penalties in a state you didn’t realize you owed. ## Can I Deduct a Home Office in 2026? **Not if you’re a W-2 employee.** The One Big Beautiful Bill Act (OBBBA) permanently eliminated the miscellaneous itemized deduction for unreimbursed employee business expenses starting with the 2026 tax year — the same category that used to allow a home office deduction for employees. This applies **even if your employer requires you to work remotely** and provides no office space at all. The one narrow exception under current law is for certain educator expenses, which follow a different rule. **Self-employed workers are unaffected.** If you’re an independent contractor, freelancer, or business owner, the home office deduction remains available — one of [the largest tax breaks]() still on the books for the self-employed — provided the space is used **exclusively and regularly** for business and is your principal place of business. You can use either the simplified method ($5 per square foot, up to 300 sq ft) or the actual-expense method based on a percentage of your home’s total costs. **If you’re a remote W-2 employee, your best option is an employer reimbursement.** Since you can no longer deduct home office costs yourself, it’s worth asking whether your employer has (or would consider setting up) an “accountable plan” — a formal reimbursement arrangement that lets the business deduct the cost and pay you back tax-free, which is a meaningfully better outcome for you than a deduction you can no longer claim anyway. ## International Remote Work Working remotely for a company based in another country — or working from abroad for a U.S. employer — adds real complexity. Tax treaties between the U.S. and other countries generally provide a framework to avoid full double taxation, but the details depend heavily on which country, how long you’re there, and whether you’re a U.S. citizen (who’s taxed on worldwide income regardless of residence) or a foreign national. You may also encounter **VAT or GST obligations** in some countries if you’re structured as an independent contractor rather than an employee. This is one of the areas where a professional familiar with cross-border taxation is worth the cost — the mistakes here tend to be expensive and hard to unwind after the fact. ## What Employers Have to Manage If you’re negotiating a remote arrangement, especially with a smaller company, it’s worth knowing that your employer takes on real compliance burden by hiring you remotely across state lines: registering for **unemployment insurance** and **withholding income tax** in every state where employees actually live and work, not just where the company is headquartered. Some smaller employers genuinely aren’t set up for this, which is occasionally why a company restricts remote hiring to specific states — it’s a payroll compliance limitation, not necessarily a policy choice about you specifically. ## Looking Ahead: 2027 The permanent elimination of the W-2 home office deduction under OBBBA isn’t going to revert — “permanent” means exactly that under current law, barring new legislation. What’s more likely to shift year to year is the list of states enforcing convenience-of-employer rules and the specific reciprocity agreements in place, since these are set at the state level and occasionally change as states compete for remote-worker tax revenue or respond to legal challenges. If your remote work arrangement crosses state lines, it’s worth rechecking both your state’s reciprocity status and your employer’s state’s convenience rule each filing season rather than assuming last year’s treatment still applies. --- See also: [2026-2027 IRS Tax Brackets](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/) | [When Can I File My Taxes in 2027?](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) | [When Can I Expect My New York State Tax Refund?](https://savingtoinvest.com/why-is-my-new-york-ny-state-tax-refund-taking-so-long-2022-payment-delay-updates/) Frequently Asked Questions QCan I still deduct home office expenses as a remote employee in 2026? ANo. OBBBA permanently eliminated the miscellaneous itemized deduction for unreimbursed employee business expenses starting in 2026, which included the home office deduction for W-2 employees - even if your employer requires you to work from home. Self-employed workers can still claim it. QWhat is the 'convenience of the employer' rule? AA rule used by several states (New York, Pennsylvania, Delaware, Arkansas, Nebraska, Massachusetts, and Connecticut in 2026) that lets the employer's state tax your income even if you work remotely from another state, as long as you're doing so for your own convenience rather than the employer's operational necessity. QIf my state has a reciprocity agreement, does that protect me from the convenience rule? ANo - they're different mechanisms. Reciprocity agreements are two-way arrangements between neighboring states for commuters; the convenience rule is a one-sided rule some states apply regardless of reciprocity. Living in a state with a reciprocity agreement doesn't automatically shield you from a convenience-rule state's claim on your income. QDo I owe taxes in two states if I work remotely across state lines? AIt depends on whether the states involved have a reciprocity agreement, whether either enforces a convenience rule, and your specific residency status. Most states offer a credit for taxes paid to another state to reduce double taxation, but the mechanics vary enough that it's worth checking your specific state combination. QWhat should I ask my employer if I can't deduct home office expenses anymore? AAsk whether they have (or would set up) an 'accountable plan' reimbursement arrangement. Since W-2 employees can no longer deduct these costs themselves under OBBBA, an employer reimbursement is a better outcome - it's tax-free to you and deductible for the business. **Categories:** Taxes and Retirement --- ### [Mid-Year Tax Moves to Make in 2026 (Before You Run Out of Time)](https://savingtoinvest.com/mid-year-tax-moves-you-can-make-now/) **Published:** July 6, 2011 **Author:** Andy **Content:** ### Key Takeaways - With more than half of 2026 behind you, this is the ideal window to fix a withholding or estimated-payment problem before it turns into a surprise bill or penalty next April. - Q3 2026 estimated tax payments are due September 15, 2026, and Q4 is due January 15, 2027 - missing either can trigger an underpayment penalty even if you pay in full by the filing deadline. - If you received a big refund this year, that's a sign your withholding is set too high, not a windfall - you're better off adjusting your W-4 now than repeating the same overpayment for another six months. - Mid-year is the right time to check whether OBBBA changes (the higher SALT cap, the new $2,200 Child Tax Credit, updated brackets) shift how much you should be withholding or paying quarterly. - Summer day camp costs count toward the Child and Dependent Care Credit, but overnight camps don't - a distinction worth confirming before assuming your summer receipts qualify. By midsummer, more than half the tax year is already locked in — but there’s still enough runway to fix a withholding problem, catch a missed estimated payment, or take advantage of a credit before December 31 forces your hand. Here’s what’s worth reviewing right now. Covered in this Article: [Toggle](#) - [Check and Adjust Your Withholding](#Check_and_Adjust_Your_Withholding) - [Don’t Miss Your Q3 Estimated Tax Payment](#Dont_Miss_Your_Q3_Estimated_Tax_Payment) - [Revisit Your OBBBA-Driven Tax Picture](#Revisit_Your_OBBBA-Driven_Tax_Picture) - [Claim Summer Day Camp Costs Toward the Child Care Credit](#Claim_Summer_Day_Camp_Costs_Toward_the_Child_Care_Credit) - [Consider Starting or Increasing Retirement Contributions](#Consider_Starting_or_Increasing_Retirement_Contributions) - [Review Your Investment Gains and Losses So Far](#Review_Your_Investment_Gains_and_Losses_So_Far) - [If You Filed an Extension, This Is the Time to Finish](#If_You_Filed_an_Extension_This_Is_the_Time_to_Finish) - [Thinking About Buying a Home?](#Thinking_About_Buying_a_Home) - [Looking Ahead: 2027](#Looking_Ahead_2027) ## Check and Adjust Your Withholding If you got a large refund this year, that’s not good news the way it feels — it means you gave the IRS an interest-free loan on money you could have had in your paycheck all along. The usual cause is withholding that wasn’t updated after a life event: marriage, a new child, a job change, or a second income. Use the [IRS Tax Withholding Estimator](https://www.irs.gov/individuals/tax-withholding-estimator) to check whether your current withholding is on track for the rest of 2026, and submit an updated **Form W-4** to your employer if it needs adjusting. Mid-year is a good time to do this because you have enough of the year’s actual income data to make an informed correction, while still having several paychecks left to spread the adjustment across. ## Don’t Miss Your Q3 Estimated Tax Payment If you’re self-employed, a freelancer, or otherwise have income without withholding — rental income, significant investment gains, a side business — the third quarterly estimated tax payment for 2026 is due **September 15, 2026**. The fourth and final payment is due **January 15, 2027**. Missing a quarterly deadline, even if you pay everything owed by the April filing deadline, can trigger an underpayment penalty calculated on the shortfall for each period it went unpaid. If your income has been uneven this year — a good quarter followed by a slow one, for instance — this is also a natural checkpoint to re-estimate your remaining payments rather than mechanically repeating the same amount all year. ## Revisit Your OBBBA-Driven Tax Picture Several changes from the One Big Beautiful Bill Act are now in effect for 2026, and mid-year is a reasonable time to check whether they change your withholding or estimated payment math: - **The SALT deduction cap rose to $40,400** (from $10,000), which may push some filers who haven’t itemized in years back into itemizing — see [Year-End Tax Planning]() for the full math. - **The Child Tax Credit is $2,200 per qualifying child** for 2026, up from $2,000 — a modest increase, but worth confirming your withholding reflects it if you added a dependent this year. - **Updated tax brackets** apply for 2026 — if you got a raise or bonus this year, it’s worth confirming which bracket that pushes you into rather than assuming last year’s numbers still apply. See [current IRS tax brackets]() for the full table. ## Claim Summer Day Camp Costs Toward the Child Care Credit Working parents often remember to claim [the Child and Dependent Care Credit]() for regular daycare, but forget that **day camp costs during the summer also qualify** — the IRS treats day camp as a substitute for regular child care while school is out. **Overnight camps don’t qualify**, so the distinction matters if you’re tracking receipts for this credit. Hang onto camp invoices and payment records now rather than trying to reconstruct them at filing time. ## Consider Starting or Increasing Retirement Contributions Mid-year is a natural checkpoint to see whether you’re on pace to hit your 2026 retirement contribution goals. The [2026 401(k) limit](), 403(b) and TSP Contribution Limits”) is $24,500 (plus catch-up contributions if you’re 50+), and the IRA limit is $7,500 — opened easily and cheaply through a [low-cost online broker]() if you don’t already have one. If you’re behind pace, increasing your per-paycheck contribution now spreads the adjustment over the rest of the year rather than requiring an unrealistic year-end catch-up thanks to [the power of compounding](). See [10 Ways to Boost Your Retirement Savings]() for the full current limits and strategies. ## Review Your Investment Gains and Losses So Far Rather than waiting until December to think about tax-loss harvesting, a mid-year review lets you see where you stand on realized gains and losses for the year and plan more deliberately for the second half — particularly useful if you’ve already realized a large gain from an earlier sale and want to identify offsetting losses before year-end rather than scrambling in the last week of December. ## If You Filed an Extension, This Is the Time to Finish If you filed for a filing extension back in April, the extended deadline is typically mid-October. Finishing your return now — rather than waiting until the final weeks — gives you more room to gather missing documentation, correct errors, and actually benefit from any credits or deductions you might otherwise rush past. ## Thinking About Buying a Home? Mortgage interest, points paid on a purchase or refinance, and (with the higher 2026 SALT cap) potentially more of your property tax bill may be deductible if you itemize. If you’re house-hunting in the second half of 2026, it’s worth factoring the potential tax treatment into your total cost-of-ownership comparison rather than treating it as an afterthought at closing. ## Looking Ahead: 2027 The same mid-year checkup logic will apply again next summer, but with one likely wrinkle: the IRS typically releases updated contribution limits and bracket thresholds for the following year in October or November, so by next mid-year you’ll be working against a fresh set of 2027 numbers. If OBBBA provisions like the SALT cap increase (scheduled to rise roughly 1% annually through 2029) or bracket adjustments shift your situation again, plan on repeating this same review each July rather than assuming last year’s withholding setting still fits. --- See also: [How to Maximize Your Tax Refund](https://savingtoinvest.com/how-to-save-money-on-taxes-and-maximize-my-tax-refund/) | [2026 Year-End Tax Planning: 15 Moves to Make Before December 31](https://savingtoinvest.com/15-year-end-tax-deductions-to-remember-unless-you-want-to-give-the-irs-a-tax-free-loan/) | [Adjust or Change Your Paycheck Tax Withholding](https://savingtoinvest.com/change-your-paycheck-tax-withholding-after-these-personal-and-financial-life-events/) Frequently Asked Questions QWhen is the Q3 2026 estimated tax payment due? ASeptember 15, 2026. The fourth and final quarterly payment for 2026 is due January 15, 2027. Missing a quarterly deadline can trigger an underpayment penalty even if the full amount is paid by the April filing deadline. QDoes a summer day camp count toward the Child and Dependent Care Credit? AYes, day camp costs qualify as a substitute for regular child care while school is out. Overnight camps do not qualify, so keep that distinction in mind when saving receipts. QI got a big refund this year - should I be happy about that? ANot really. A large refund means you overpaid your taxes through withholding all year, effectively giving the IRS an interest-free loan. It's worth using the IRS Tax Withholding Estimator mid-year to adjust your W-4 so more of your income arrives in your paycheck instead. QHow did OBBBA change what I should be withholding in 2026? AThe SALT deduction cap rose to $40,400 (from $10,000), the Child Tax Credit rose to $2,200 per child, and federal brackets were updated - any of these could shift your total tax liability enough to warrant an updated W-4 or estimated payment amount, especially if your income or family situation also changed this year. QWhat if I filed a tax extension back in April - when is that due? AExtended returns are typically due in mid-October. Mid-year is a good time to start gathering any missing documentation so you're not rushing in the final weeks before the extended deadline. **Categories:** Taxes and Retirement **Tags:** Child credit, Credits, house, IRA, taxes --- ### [10 Ways to Boost Your Retirement Savings in 2026](https://savingtoinvest.com/10-ways-to-boost-your-retirement-savings-starting-now/) **Published:** September 14, 2010 **Author:** Andy **Content:** ### Key Takeaways - An employer 401(k) match is free money you're leaving on the table if you don't contribute enough to get all of it - contributing less than your employer's match threshold is effectively declining part of your compensation. - The 2026 401(k) limit is $24,500, with an $8,000 catch-up at 50+, and an $11,250 'super catch-up' for those aged 60-63 under SECURE 2.0. - The 2026 IRA limit is $7,500 ($8,600 if 50+), and unlike a 401(k), you have until April 15, 2027 to fund it and still have it count for the 2026 tax year. - An HSA offers a genuine triple tax advantage - deductible contributions, tax-free growth, tax-free qualified withdrawals - and can double as a retirement account after age 65, when non-medical withdrawals are simply taxed as ordinary income. - Delaying Social Security from age 62 to 70 increases your monthly benefit permanently, which is effectively one of the only 'guaranteed return' levers left in retirement planning. Boosting retirement savings isn’t about finding one clever trick — it’s mostly about using the accounts and incentives already available to you more fully than you currently are. Here are ten concrete ways to do that in 2026. Covered in this Article: [Toggle](#) - [1. Get Your Full Employer Match](#1_Get_Your_Full_Employer_Match) - [2. Max Out (or Increase) Your Retirement Plan Contribution](#2_Max_Out_or_Increase_Your_Retirement_Plan_Contribution) - [3. Fund an IRA — Traditional or Roth](#3_Fund_an_IRA_%E2%80%94_Traditional_or_Roth) - [4. Check Whether You Qualify for the Saver’s Credit](#4_Check_Whether_You_Qualify_for_the_Savers_Credit) - [5. Contribute to an HSA](#5_Contribute_to_an_HSA) - [6. Diversify and Review Your Portfolio’s Cost](#6_Diversify_and_Review_Your_Portfolios_Cost) - [7. Protect Your Income With Insurance](#7_Protect_Your_Income_With_Insurance) - [8. Reduce Expenses and Redirect the Difference](#8_Reduce_Expenses_and_Redirect_the_Difference) - [9. Keep an Emergency Fund Separate From Retirement Savings](#9_Keep_an_Emergency_Fund_Separate_From_Retirement_Savings) - [10. Automate Contributions and Think Carefully About Claiming Age](#10_Automate_Contributions_and_Think_Carefully_About_Claiming_Age) - [Looking Ahead: 2027](#Looking_Ahead_2027) ## 1. Get Your Full Employer Match If your employer offers a 401(k) match, contributing less than the amount needed to capture the full match means turning down part of your compensation — see [5 Reasons to Max Out Your 401(k)]() for the full math on why this is treated as close to a guaranteed-return move. A common structure: an employer matches 50% of your contribution up to 6% of pay, meaning you need to contribute 6% to receive the full 3% match. For someone earning $60,000, missing that match costs roughly $1,800 a year in free money — money that would otherwise compound for decades before retirement thanks to [the power of compounding](). ## 2. Max Out (or Increase) Your Retirement Plan Contribution The 2026 contribution limit for 401(k), 403(b), and most 457 plans is **$24,500**. If you’re 50 or older, you can add an **$8,000 catch-up contribution** for a total of $32,500. Under SECURE 2.0, workers aged **60-63** get an even larger “super catch-up” of **$11,250** instead of $8,000, bringing their total to $35,750. See the [401(k) contribution limits](), 403(b) and TSP Contribution Limits”) page for the full breakdown by plan type. Pre-tax contributions reduce your taxable income now while building tax-deferred growth — even increasing your contribution rate by a percentage point or two can meaningfully change your balance at retirement due to decades of compounding. ## 3. Fund an IRA — Traditional or Roth The 2026 IRA contribution limit is **$7,500** ($8,600 if you’re 50 or older). Unlike a 401(k), you have until **April 15, 2027** to make a contribution and have it count toward your 2026 tax year — useful if you’re deciding late in the year (or even after it ends) whether you have room to contribute. Whether a traditional IRA contribution is deductible depends on your income and workplace coverage; Roth IRA eligibility phases out at higher incomes. See [Traditional vs. Roth IRA]() for the exact thresholds. ## 4. Check Whether You Qualify for the Saver’s Credit Many moderate-income savers qualify for the **Saver’s Credit**, a direct tax credit (not just a deduction) worth up to 50% of your retirement contribution, depending on your income and filing status. It’s one of the most under-claimed credits tied to retirement savings, since many eligible filers assume credits like this only apply to lower earners than they actually do. See the [Saver’s Credit income limits]() for the current thresholds. ## 5. Contribute to an HSA If you have a high-deductible health plan, an [HSA]() offers a genuine triple tax advantage: contributions are pre-tax (or deductible), growth is tax-free, and withdrawals for qualified medical expenses are tax-free — better tax treatment than either a traditional or Roth account alone. The 2026 limit is **$4,400** for self-only coverage and **$8,750** for family coverage, plus a **$1,000 catch-up** at age 55+. After age 65, HSA withdrawals for non-medical expenses are simply taxed as ordinary income — similar to a traditional 401(k) — with no penalty, which effectively turns an HSA into a second retirement account once you’re past the age where the penalty would apply. Unlike a traditional IRA, HSAs have no required minimum distributions, so unused funds can keep growing indefinitely. ## 6. Diversify and Review Your Portfolio’s Cost Rather than chasing specific stock picks, focus on two things you can actually control: diversification across asset classes and the expense ratios you’re paying. A well-diversified, low-cost index or target-date fund tends to outperform actively managed alternatives over long time horizons once fees are accounted for, though your specific allocation should reflect your own timeline and risk tolerance. If you haven’t reviewed your 401(k) or IRA’s fund lineup and fees in a few years, it’s worth a look — a 1% difference in annual fees compounds into a meaningfully smaller balance over a multi-decade career. ## 7. Protect Your Income With Insurance Your ability to keep earning and saving is arguably your most valuable financial asset — more valuable than any single account balance. [Disability insurance]() replaces a portion of your income if you’re unable to work, and life insurance protects your family’s financial plan if you’re not there to keep contributing. Both are worth evaluating as part of a retirement plan, not just as standalone purchases — see [how much life insurance coverage you actually need]() for a framework. ## 8. Reduce Expenses and Redirect the Difference The oldest advice in personal finance is still true: what you keep matters more than what you earn — see [The A to Z of Good Personal Finance]() for the broader framework. Paying off high-interest debt, reassessing recurring subscriptions, and reviewing large fixed costs like housing and insurance free up cash that can go directly into retirement contributions rather than disappearing into discretionary spending. ## 9. Keep an Emergency Fund Separate From Retirement Savings Without accessible cash reserves, an unexpected expense often gets paid for by tapping retirement accounts early — triggering taxes, penalties, and lost future growth all at once. Aim for three to six months of essential expenses in a liquid, easily accessible account like a [high-yield savings account](), separate from anything earmarked for retirement. ## 10. Automate Contributions and Think Carefully About Claiming Age **Pay yourself first** by automating retirement contributions directly from your paycheck before you have a chance to spend the money elsewhere — this is consistently one of the most effective behavioral levers in personal finance, regardless of income level. On the claiming side: age 62 is the earliest you can claim Social Security retirement benefits, but your monthly benefit increases for every year you delay, up until age 70. Depending on your health, other savings, and whether you’re still working, delaying even a year or two can meaningfully raise your guaranteed lifetime income. See [Social Security claiming strategies]() for the tradeoffs involved. ## Looking Ahead: 2027 Expect the IRS to release updated 401(k), IRA, and HSA limits for 2027 in October or November 2026, typically with modest increases tied to inflation. The bigger structural change to watch is how SECURE 2.0’s catch-up provisions continue rolling out — including the requirement that catch-up contributions for higher earners be made on a Roth (after-tax) basis starting in coming years, which changes the tax treatment for some savers even though the contribution limits themselves stay the same. --- See also: [When Can I Make Catch-Up Contributions?](https://savingtoinvest.com/when-can-i-make-catch-up-contributions-to-401k-ira-403b-and-simple-ira-retirement-plans/) | [Eight Things NOT to Do With Your 401(k) and IRA](https://savingtoinvest.com/what-not-to-do-with-your-401k-and-ira/) | [Key Retirement Ages for 401(k), IRA, and Social Security](https://savingtoinvest.com/retirement-ages-and-eligilbility-rules-for-receiving-401k-ira-and-social-security-beneifts/) Frequently Asked Questions QWhat's the single easiest way to boost retirement savings? AContributing enough to capture your full employer 401(k) match, if one is offered. Contributing less than the match threshold means turning down part of your compensation - for a common 50%-match-up-to-6%-of-pay structure, that's real money left unclaimed every year. QWhat are the 2026 contribution limits for retirement accounts? A$24,500 for a 401(k) ($32,500 with the 50+ catch-up, $35,750 for ages 60-63 under the super catch-up), $7,500 for an IRA ($8,600 if 50+), and $4,400/$8,750 for an HSA (self-only/family), plus a $1,000 HSA catch-up at 55+. QCan I still contribute to an IRA for last year after the year ends? AYes. Unlike a 401(k), IRA contributions can be made up until the tax filing deadline (April 15 of the following year) and still count toward the prior tax year. QHow does an HSA work as a retirement account? AAfter age 65, HSA withdrawals for non-medical expenses are simply taxed as ordinary income with no penalty, similar to a traditional 401(k) - while withdrawals for qualified medical expenses remain tax-free at any age. HSAs also have no required minimum distributions, unlike traditional IRAs. QDoes delaying Social Security really make a big difference? AYes. Your monthly benefit increases for every year you delay claiming between age 62 and 70. For many retirees with other savings or continued income, delaying even a few years meaningfully raises guaranteed lifetime income, though the right age depends on health, other assets, and whether you're still working. **Categories:** Taxes and Retirement **Tags:** 401K, retirement, Roth IRA, saving, tax, working --- ### [When Will I Get My New York (NY) State Tax Refund in 2026-2027?](https://savingtoinvest.com/when-can-i-expect-my-new-york-state-tax-refund/) **Published:** April 6, 2022 **Author:** Andy **Content:** ### Key Takeaways - E-filed New York returns typically process in 2-3 weeks; you can check status online about a week after e-filing, or three weeks after mailing a paper return. - The refund status line (1-518-457-5149) is available 24/7 - you don't need to call during business hours to get an automated status update. - Free filing through the Free File Alliance now covers federal AGI up to $89,000 for the 2026 filing season - a $5,000 jump from the prior year and one of the largest increases in the program's history. - If you work in New York but live in a neighboring state, filing Form IT-203 (Nonresident and Part-Year Resident return) lets you claim a refund of NY withholding and avoid double taxation. - Responding promptly to a Request for Information notice (DTF-948) is the single biggest factor in avoiding extended refund delays - unanswered notices are the most common cause of returns stuck in 'processing' for months. New York’s state refund process runs on its own timeline, separate from your federal refund — and the two systems don’t share status information, so a fast federal refund doesn’t tell you anything about when your state refund will arrive. Covered in this Article: [Toggle](#) - [How Long Does a NY State Refund Take?](#How_Long_Does_a_NY_State_Refund_Take) - [Responding to a Request for Information (DTF-948)](#Responding_to_a_Request_for_Information_DTF-948) - [Living in a Neighboring State? File Form IT-203](#Living_in_a_Neighboring_State_File_Form_IT-203) - [Free Filing Options for 2026](#Free_Filing_Options_for_2026) - [How to Reach a Live Agent](#How_to_Reach_a_Live_Agent) - [Looking Ahead: 2027](#Looking_Ahead_2027) ## How Long Does a NY State Refund Take? The [NY Department of Taxation and Finance](https://www.tax.ny.gov/) (NYDTF) generally processes **e-filed returns in 2-3 weeks** and **paper returns in about 4 weeks**, though returns flagged for manual review — often due to a mismatch, a missing form, or a request for additional documentation — take considerably longer. See [average IRS and state refund processing times]() for how New York compares to other states. You can check your refund status using the state’s [Check Your Refund](https://www.tax.ny.gov/pit/file/refund.htm) tool, similar in concept to the federal [WMR/IRS2Go]() tracker used for your federal refund: - **E-filed returns:** check status about **one week** after filing. - **Paper returns:** wait about **three weeks** before checking, since paper returns take longer to enter into the system. Choosing **direct deposit** rather than a mailed check remains the fastest way to actually receive your refund once it’s approved — a mailed check adds several days to weeks on top of processing time, and New York requires a mailed check in some part-year resident situations regardless of your preference. ## Responding to a Request for Information (DTF-948) If NYDTF needs more information to process your return, they’ll send a **Request for Information** notice (Form DTF-948 or DTF-948-O). This is the single most common reason a return sits in “processing” far longer than expected — and unfortunately, many filers don’t realize a letter is coming or miss it in the mail. **Respond promptly.** Delayed responses are the most direct cause of extended refund waits. You can also view notices through your **Individual Online Services account** even if you didn’t receive (or can’t find) the mailed letter, which is worth checking proactively if your refund status hasn’t moved in several weeks. ## Living in a Neighboring State? File Form IT-203 If you live in New Jersey, Connecticut, Pennsylvania, or another neighboring state but work in New York, you’re required to file [**Form IT-203**]() (Nonresident and Part-Year Resident Income Tax Return). This lets you claim a refund of New York income tax withheld from your pay and avoid being taxed twice on the same income by both states. One important wrinkle: New York is one of a handful of states that applies a **“convenience of the employer” rule**, meaning if your employer is based in New York but you work remotely from another state for your own convenience (rather than your employer’s necessity), New York may still tax that income. This has become a bigger issue as remote work has become more common — if this applies to you, it’s worth understanding before assuming your home state’s tax rules are the only ones that matter. ## Free Filing Options for 2026 Through the [**Free File Alliance**](), New York filers can prepare and file both federal and state returns for free if they meet the income requirements. For the 2026 filing season, the federal AGI threshold is **$89,000 or less** — a $5,000 increase from the prior year and one of the largest jumps in the program’s history. Some individual Free File partners layer on their own additional requirements (age or military status among them), so check each partner’s specific criteria on the [NY Free File page](https://www.tax.ny.gov/pit/efile/) if your situation is close to the cutoff. If your income is above the threshold, NY still offers **Free File Fillable Forms** for taxpayers of any income level, though these require you to do your own calculations rather than providing guided software assistance. You can use the [same tax software]() to file both your federal and New York state returns together. ## How to Reach a Live Agent - **Refund status (automated, 24/7):** 1-518-457-5149 - **General tax information:** 1-518-457-5181 For your **federal** refund, see our guide on [reaching a live IRS agent]() — the process and hold times are notably different from New York’s system. ## Looking Ahead: 2027 New York’s processing timelines and phone numbers have stayed fairly consistent year over year, so the biggest thing to watch for the 2027 filing season is whether the Free File AGI threshold rises again — it’s jumped meaningfully in recent years as the IRS expands the program, and NY’s threshold tracks the federal figure. If you’re a remote worker with a New York-based employer, also keep an eye on any legislative movement around the “convenience of the employer” rule, since several states have challenged similar rules in other jurisdictions in recent years. --- See also: [When Can I File My Taxes in 2027?](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) | [Why Is It Taking So Long to Get My Tax Refund?](https://savingtoinvest.com/why-is-it-taking-so-long-to-get-my-tax-refund/) | [2026-2027 Updates: Best Online Tax Filing Software and Free Filing Options](https://savingtoinvest.com/the-best-tax-software-and-free-filing-options-as-tax-filing-goes-primarily-online/) Frequently Asked Questions QHow long does it take to get a New York state tax refund? AE-filed returns typically process in 2-3 weeks; paper returns take about 4 weeks. Returns flagged for manual review or missing documentation take longer. Check status online about a week after e-filing, or three weeks after mailing a paper return. QWhat's the phone number to check my NY refund status? A1-518-457-5149 is the automated refund status line, available 24/7. For general tax questions, call 1-518-457-5181 instead. QI live in New Jersey but work in New York - do I need to file a NY return? AYes, typically Form IT-203 (Nonresident and Part-Year Resident Income Tax Return), which lets you claim a refund of NY withholding and avoid double taxation on the same income. Note that New York's 'convenience of the employer' rule can still tax your income if you work remotely for a NY-based employer by your own choice rather than your employer's requirement. QWhat income qualifies for free tax filing in New York for 2026? AFederal AGI of $89,000 or less qualifies through the Free File Alliance for the 2026 filing season, though individual software partners may add their own age, income, or military-status requirements. Fillable forms are available at any income level but require manual calculation. QWhy is my NY refund still showing 'processing' after several weeks? AThe most common cause is an unanswered Request for Information notice (Form DTF-948). Check your Individual Online Services account for notices even if you didn't receive the mailed letter, and respond promptly - delayed responses are the biggest driver of extended refund waits. **Categories:** Taxes and Retirement --- ### [How to Maximize Your Tax Refund in 2026: What Actually Moves the Needle](https://savingtoinvest.com/how-to-save-money-on-taxes-and-maximize-my-tax-refund/) **Published:** November 20, 2022 **Author:** Andy **Content:** ### Key Takeaways - A bigger refund usually just means you overpaid the IRS all year through withholding - the real goal is lowering your total tax bill, which sometimes means a smaller refund but more money in your pocket throughout the year. - The 2026 standard deduction is $16,100 (single) and $32,200 (married filing jointly), so most filers won't benefit from itemizing unless their deductions clear that bar. - The SALT deduction cap jumped to $40,400 for 2026 under the One Big Beautiful Bill (OBBB) - a major change for itemizers in high-tax states, up from the $10,000 cap in place since 2017. - The Child Tax Credit is $2,200 per qualifying child for 2026, and the Earned Income Tax Credit tops out at $8,231 for families with three or more children - both are frequently under-claimed. - Retirement account contributions remain the most reliable refund lever: $24,500 for a 401(k) and $7,500 for an IRA in 2026, both of which reduce taxable income dollar for dollar if you qualify for the deduction. “Maximize your tax refund” gets searched every filing season, but it’s worth being precise about what that actually means. A refund is just the IRS returning money you already overpaid through paycheck withholding or estimated payments — getting a bigger one isn’t really a win if it means you gave the government an interest-free loan all year. The better goal is lowering your total tax liability and matching your withholding to it as closely as possible. Here’s what actually accomplishes that in 2026. Covered in this Article: [Toggle](#) - [Fix Your Withholding First](#Fix_Your_Withholding_First) - [Contribute to Retirement Accounts](#Contribute_to_Retirement_Accounts) - [Know Whether Itemizing Actually Helps You](#Know_Whether_Itemizing_Actually_Helps_You) - [Claim Every Credit You’re Eligible For](#Claim_Every_Credit_Youre_Eligible_For) - [Time Your Income and Deductions](#Time_Your_Income_and_Deductions) - [Review Your Investment Losses](#Review_Your_Investment_Losses) - [Consider a Home Office Deduction](#Consider_a_Home_Office_Deduction) - [Use Tax Software or a Professional](#Use_Tax_Software_or_a_Professional) - [Looking Ahead: 2027](#Looking_Ahead_2027) ## Fix Your Withholding First If you got a large refund last year, that’s a signal your withholding is set too high — not a stroke of luck. You can adjust this any time by submitting a new [W-4 form]() After These Personal and Financial Life Events”) to your employer, particularly after a life event — marriage, a new child, a second job, or a significant income change. Getting withholding right doesn’t change your total tax bill, but it does mean more of your paycheck arrives when you actually earn it, rather than sitting with the IRS interest-free until you file. ## Contribute to Retirement Accounts This is still the most reliable, controllable way to reduce your taxable income before you file. **401(k):** The 2026 contribution limit is $24,500, plus an $8,000 catch-up if you’re 50 or older ($11,250 if you’re 60-63, under SECURE 2.0’s “super catch-up” provision). Contributions must be made through payroll by December 31 — you can’t retroactively fund a 401(k) after year-end. **Traditional IRA:** The 2026 limit is $7,500 ($8,600 if 50+), and unlike a 401(k), you have until April 15, 2027 to contribute and still have it count for your 2026 return. Whether the contribution is deductible depends on your income and whether you or a spouse have a workplace plan — see the [Traditional vs. Roth IRA]() breakdown for the exact phase-out ranges. **HSA:** If you have a high-deductible health plan, [HSA contributions]() are deductible even if you don’t itemize — $4,400 for self-only coverage, $8,750 for family coverage in 2026, plus a $1,000 catch-up at 55+. ## Know Whether Itemizing Actually Helps You The 2026 standard deduction is **$16,100** for single filers and **$32,200** for married filing jointly (with an additional amount for filers 65 or older). Because that threshold is high, most people take the standard deduction — itemizing only helps if your mortgage interest, charitable donations, medical expenses, and state/local taxes combined exceed it. One change worth knowing: the **SALT deduction cap rose to $40,400 for 2026** under the One Big Beautiful Bill, up from the $10,000 cap that had applied since 2017 (phasing down for filers with MAGI above $500,500). If you live in a high-tax state and pay significant property and state income tax, this alone may be enough to push you over the standard deduction threshold for the first time in years — worth running the math even if you haven’t itemized recently. Medical expenses are deductible above 7.5% of your adjusted gross income if you itemize — a threshold that’s been stable since 2017 despite some sources still citing the older 10% figure. ## Claim Every Credit You’re Eligible For Credits are worth more than deductions of the same size, since they reduce your tax bill dollar for dollar rather than just reducing taxable income — and several of the biggest ones are routinely under-claimed. - **[Earned Income Tax Credit (EITC)]():** Worth up to $8,231 for 2026 with three or more qualifying children, and up to $664 even with no children. The IRS estimates roughly 1 in 5 eligible taxpayers don’t claim it, often because they assume they don’t qualify. - **[Child Tax Credit (CTC)]():** $2,200 per qualifying child for 2026, with up to $1,700 refundable as the Additional Child Tax Credit. Phases out starting at $200,000 MAGI ($400,000 married filing jointly). - **Child and Dependent Care Credit:** Covers a percentage of qualifying childcare costs (20%-35% depending on income) for up to $3,000 in expenses for one child or $6,000 for two or more. - **American Opportunity Tax Credit:** Up to $2,500 per student for the first four years of college, with up to $1,000 refundable even if you owe no tax. ## Time Your Income and Deductions If you’re self-employed or otherwise have some control over when income lands, deferring income into January (or accelerating deductible expenses into the current year) can reduce this year’s taxable income — particularly useful if you expect to be in a lower bracket next year. This works in reverse too: if you expect higher income next year, accelerating income now and deferring deductions can make sense. ## Review Your Investment Losses If you’re holding investments (including crypto) at a loss, selling before year-end lets you offset realized gains and, if losses exceed gains, deduct up to $3,000 against ordinary income — with any excess carried forward to future years. Just watch the 30-day wash-sale rule, which disallows the loss if you buy back the same or a substantially identical security within 30 days. See [Capital Gains and Losses]() for the full mechanics. ## Consider a Home Office Deduction If you’re self-employed and use part of your home exclusively and regularly for business, the home office deduction can reduce your taxable income — either a simplified $5-per-square-foot calculation (up to 300 sq ft) or the actual-expense method based on a percentage of your home’s costs. This deduction generally isn’t available to W-2 employees under current law, only the self-employed. ## Use Tax Software or a Professional A decent [tax filing tool]() will flag credits and deductions you might otherwise miss, and can be worth the cost even for straightforward returns. If your situation involves self-employment, multiple states, or significant investment activity, a professional’s fee is often smaller than the errors or missed credits they catch. ## Looking Ahead: 2027 Most of the levers above carry forward into 2027 with modest inflation adjustments — expect the IRS to release updated 401(k), IRA, and credit amounts in October or November 2026. The bigger open question is the SALT cap, which is scheduled to increase roughly 1% annually through 2029 under OBBB (so around $40,800 for 2027), and whatever comes out of the FY 2027 budget process more broadly. If you made an itemizing decision this year based on the higher SALT cap, it’s worth re-running the math each year rather than assuming your filing approach stays the same. --- See also: [2026-2027 IRS Tax Brackets](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/) | [2026 Year-End Tax Planning: 15 Moves to Make Before December 31](https://savingtoinvest.com/15-year-end-tax-deductions-to-remember-unless-you-want-to-give-the-irs-a-tax-free-loan/) | [Mid-Year Tax Moves](https://savingtoinvest.com/mid-year-tax-moves-you-can-make-now/) Frequently Asked Questions QDoes a bigger tax refund mean I'm saving more money? ANot necessarily. A refund just means you overpaid your taxes throughout the year through withholding or estimated payments - the IRS is returning your own money without interest. The better goal is reducing your total tax liability and matching your withholding closely to it, which sometimes means a smaller refund but more take-home pay throughout the year. QWhat's the single most reliable way to reduce my tax bill? APre-tax retirement contributions. A traditional 401(k) or deductible IRA contribution reduces your taxable income dollar for dollar, up to the 2026 limits of $24,500 (401(k)) and $7,500 (IRA), both higher with catch-up contributions if you're 50 or older. QShould I itemize or take the standard deduction in 2026? ARun the math before assuming. The 2026 standard deduction is $16,100 (single) or $32,200 (married filing jointly). With the SALT cap now at $40,400 (up from $10,000), itemizing may be worthwhile for the first time in years if you're a homeowner in a high-tax state with significant property and state income tax. QWhat tax credits do people miss most often? AThe Earned Income Tax Credit is the biggest one - the IRS estimates roughly 20% of eligible taxpayers don't claim it, often assuming they earn too much or don't have children when they actually qualify. The Child and Dependent Care Credit and education credits like the American Opportunity Tax Credit are also frequently overlooked. QIs it too late to reduce this year's taxes if I'm already filing my return? AFor most moves, yes - 401(k) contributions and charitable donations needed to happen by December 31. But IRA and HSA contributions can still be made up until the April 15 filing deadline and applied to the prior tax year, so those remain available even after the calendar year ends. **Categories:** Taxes and Retirement **Tags:** credit, Deductions, IRS, refund, tax --- ### [State Energy Assistance Programs in 2026: LIHEAP Funding, Income Limits, and How to Apply](https://savingtoinvest.com/state-energy-assistance-program-benefits-and-income-thresholds/) **Published:** December 7, 2022 **Author:** Andy **Content:** ### Key Takeaways - Congress funded LIHEAP at $4.13 billion for FY 2026 - rejecting the White House's proposed elimination for the sixth straight year - and all FY26 funds were released to states by April 2026. - The administration's FY 2027 budget request again proposes eliminating LIHEAP entirely, so don't assume next winter's funding will look the same as this year's. - HHS eliminated the federal staff who administer LIHEAP in April 2025, leaving oversight to a single staffer - a factor in some of the funding-release delays states saw this year. - Income eligibility is generally capped at 150% of the federal poverty level or 60% of state median income, whichever is higher, but each state sets its own exact threshold and benefit amount. - Apply as early in the season as possible. Many state LIHEAP offices exhaust their allocation before the official application window closes, especially heading into winter. Home energy costs keep climbing, and for households on the lower end of the income scale, that’s not an abstract budgeting problem — it’s a choice between heating the house and paying for something else. The good news is that federal and state energy assistance programs exist specifically to help. The less good news is that funding for the largest of these programs, LIHEAP, has been fought over in Washington every year since 2025, which makes it worth understanding both what’s currently available and how secure that funding actually is. Covered in this Article: [Toggle](#) - [Is LIHEAP Still Funded in 2026?](#Is_LIHEAP_Still_Funded_in_2026) - [What Is LIHEAP and Who Qualifies?](#What_Is_LIHEAP_and_Who_Qualifies) - [State Energy Assistance Programs](#State_Energy_Assistance_Programs) - [Related Programs Worth Knowing About](#Related_Programs_Worth_Knowing_About) - [How to Apply](#How_to_Apply) - [Looking Ahead: 2027](#Looking_Ahead_2027) ## Is LIHEAP Still Funded in 2026? Yes — for now. The White House’s initial FY 2026 budget request called for eliminating federal funding for the Low Income Home Energy Assistance Program (LIHEAP) entirely, the sixth time a Trump administration budget has proposed doing so. Congress rejected that request again, ultimately funding the program at **$4.13 billion** for fiscal 2026, a roughly $20 million increase over the prior year. House Appropriations Committee Chair Tom Cole (R-OK) has been publicly opposed to eliminating the program, and bipartisan pushback from lawmakers whose states rely heavily on LIHEAP funding has held so far. As of April 2026, the remaining 10% of FY 2026 LIHEAP funds were disbursed to states after several delays earlier in the year — so all of this year’s allocation is now in the pipeline. That said, two things are worth knowing if you’re relying on this program: **Administrative capacity has been cut.** The Department of Health and Human Services eliminated the federal staff assigned to administer LIHEAP in April 2025, leaving responsibility for a multibillion-dollar program resting on a single staffer. That’s a meaningful factor behind some of this year’s disbursement delays, and it’s worth keeping in mind if your state’s program feels slower or less responsive than usual. **Next year is not guaranteed.** The administration’s FY 2027 budget request again proposes eliminating LIHEAP funding entirely. Congress has rejected this proposal every year so far, but if you depend on this assistance, it’s worth watching how the FY 2027 appropriations process unfolds later this year rather than assuming the program continues automatically. [**Get the latest money, tax and stimulus news directly in your inbox**]() ## What Is LIHEAP and Who Qualifies? LIHEAP helps low-income households pay their home energy bills — heating assistance in winter, cooling assistance in summer — along with weatherization, energy efficiency improvements, and emergency help during energy crisis situations (like a shutoff notice or a broken furnace in January). To qualify, you generally need to be a resident of the state administering your local program and fall under a household income threshold. Federal guidelines set the outer boundary: states can set their income limit at up to 150% of the [federal poverty line]() or 60% of the state median income, whichever is higher — but each state chooses its own specific cutoff and benefit schedule within that range, so the actual dollar threshold varies meaningfully from state to state. Some states also give automatic eligibility to households already receiving SNAP, SSI, or certain other need-based benefits. Funding is paid directly to certified local agencies and utility or fuel providers on a household’s behalf — LIHEAP rarely issues cash directly to individuals — and is strictly limited by each state’s annual allocation. Because of that funding cap, many states operate on a first-come, first-served basis and can run out of available funds before their formal application period ends. If you think you might qualify, apply as soon as your state’s season opens rather than waiting. ## State Energy Assistance Programs Program names vary by state even though most draw on the same federal LIHEAP funding stream. Contact your state’s administering agency directly for the current income threshold and benefit amount for your household size — the figures below are historical planning benchmarks, not guaranteed amounts for this heating season. StateEnergy Assistance ProgramsWhere to Apply**Arizona**LIHEAP, Home Energy Assistance Fund[des.az.gov/liheap](https://des.az.gov/liheap)**California**LIHEAP, Low-Income Weatherization Program (LIWP)[csd.ca.gov/find-assistance](https://www.csd.ca.gov/find-assistance)**Florida**LIHEAP, Weatherization Assistance Program (WAP)[floridajobs.org](https://floridajobs.org/community-planning-and-development/community-services/low-income-home-energy-assistance-program)**Georgia**LIHEAP[dfcs.georgia.gov](https://dfcs.georgia.gov/services/low-income-home-energy-assistance-program-liheap)**Illinois**LIHEAP Energy Assistance[dceo.illinois.gov](https://dceo.illinois.gov/communityservices/utilitybillassistance.html)**Michigan**Michigan Energy Assistance Program (MEAP), State Emergency Relief, Home Heating Credit[michigan.gov/mpsc](https://www.michigan.gov/mpsc/consumer/energy-assistance)**New York**HEAP, HEAP Cooling Assistance, Heating Equipment Repair/Replacement[otda.ny.gov/programs/heap](https://otda.ny.gov/programs/heap/)**North Carolina**Low Income Energy Assistance (LIEAP)[ncdhhs.gov](https://www.ncdhhs.gov/divisions/social-services/energy-assistance/low-income-energy-assistance-lieap)**Ohio**HEAP, Summer Crisis Program, Home Weatherization Assistance[development.ohio.gov](https://development.ohio.gov/individual/energy-assistance/energy-assistance)**Pennsylvania**LIHEAP[dhs.pa.gov](https://www.dhs.pa.gov/Services/Assistance/Pages/LIHEAP.aspx)**Texas**Comprehensive Energy Assistance Program (CEAP), WAP[benefits.gov](https://www.benefits.gov/benefit/1579)**Virginia**Energy Assistance Program — Fuel, Crisis, and Cooling Assistance[dss.virginia.gov](https://www.dss.virginia.gov/benefit/ea/#:~:text=The%20Virginia%20Energy%20Assistance%20Program,of%20the%20federal%20poverty%20level.) ## Related Programs Worth Knowing About **Weatherization Assistance Program (WAP).** A separate federal program that funds insulation, air sealing, and efficiency upgrades for low-income homes — it reduces energy costs permanently rather than covering a single season’s bill, and is often administered by the same state agency as LIHEAP. **Low Income Household Water Assistance Program (LIHWAP).** LIHEAP’s counterpart for water and wastewater bills, helping eligible households cover water utility costs and arrears. **Utility company hardship programs.** Many utilities run their own assistance funds, payment plans, or shutoff moratoriums for elderly, disabled, or medically dependent customers, separate from state LIHEAP funding. Ask your utility directly — these programs don’t always require the same income documentation as LIHEAP. ## How to Apply 1. **Find your state’s administering agency** using the table above, or search “\[your state\] LIHEAP application.” 2. **Gather documentation**: proof of income for all household members (recent pay stubs, benefit award letters), a recent energy bill, and proof of residency. 3. **Apply as early in the season as possible** — funding is limited and distributed on a rolling basis in most states. 4. **Ask about crisis assistance** if you’re facing an active shutoff or have no working heat — most states have an expedited process for emergency situations that moves faster than the standard application. 5. **Check for automatic eligibility** if you already receive SNAP, SSI, or TANF — many states waive additional income verification in that case. ## Looking Ahead: 2027 The FY 2027 budget fight is the one to watch. The administration has proposed eliminating LIHEAP funding entirely for a seventh consecutive year, and while Congress has rejected every prior attempt, the outcome of the FY 2027 appropriations process (typically finalized in the fall) will determine whether the program exists in its current form for next winter. If you rely on this assistance, it’s worth following state-level and congressional news on LIHEAP funding as autumn approaches, and applying early once your state’s program opens regardless of the broader funding picture — allocations already appropriated to a given fiscal year get distributed to states regardless of what happens with the following year’s budget. --- See also: [Would You Be Considered Poor Based on Federal Poverty Levels?](https://savingtoinvest.com/would-you-be-considered-poor-based-on-federal-poverty-levels/) | [State-by-State SNAP Benefit Amounts](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/) | [Earned Income Tax Credit (EITC) Qualification](https://savingtoinvest.com/earned-income-tax-credit-eitc-qualification-and-income-threshold-limits/) Frequently Asked Questions QIs LIHEAP still funded for the 2026 heating season? AYes. Congress funded LIHEAP at $4.13 billion for FY 2026, rejecting the White House's proposal to eliminate the program, and all FY26 funds were released to states by April 2026. QWill LIHEAP be funded next year? AIt's not guaranteed. The administration's FY 2027 budget request again proposes eliminating LIHEAP entirely. Congress has rejected this proposal every year since 2025, but the outcome for FY 2027 won't be clear until the appropriations process finishes later this year. QWhat income level qualifies for LIHEAP? AFederal rules cap state LIHEAP income limits at 150% of the federal poverty level or 60% of state median income, whichever is higher, but each state sets its own specific threshold within that range. Households already receiving SNAP, SSI, or similar benefits often qualify automatically. QHow do I apply for energy assistance? AContact your state's administering agency (listed by state above), gather proof of income and a recent energy bill, and apply as early in the season as possible since funding is limited and distributed on a rolling basis. QWhat's the difference between LIHEAP and the Weatherization Assistance Program? ALIHEAP helps pay current energy bills and covers emergency crisis situations. The Weatherization Assistance Program (WAP) instead funds permanent efficiency upgrades - insulation, air sealing, HVAC repairs - that reduce your energy costs going forward. Many households qualify for both. **Categories:** Taxes and Retirement --- ### [Rental Property Tax Rules in 2026: 1099 Reporting, FBAR, and the New Depreciation Rules](https://savingtoinvest.com/rental-property-tax-changes-form-1099-and-foriegn-bank-accounts-and-assets-disclosure-requirements/) **Published:** January 7, 2011 **Author:** Andy **Content:** ### Key Takeaways - The 1099-NEC filing threshold jumped from $600 to $2,000 for the 2026 tax year - landlords no longer need to issue a 1099 to a contractor paid less than $2,000 total during the year. - FBAR (FinCEN Form 114) is still required if your combined foreign financial accounts exceeded $10,000 at any point during 2026 - that threshold hasn't changed, and it's separate from the old paper Form 90-22.1, which was digitized years ago. - FBAR is filed electronically through FinCEN's BSA E-Filing System, due April 15, 2027 for the 2026 tax year, with an automatic extension to October 15 - no extension request needed. - OBBBA permanently restored 100% bonus depreciation for qualifying rental property components (appliances, carpeting, certain fixtures) placed in service after January 19, 2025, and made the 20% QBI deduction for rental income permanent. - FBAR penalties are steep and inflation-adjusted: up to $16,536 per violation for non-willful failures, and the greater of $165,353 or 50% of the account balance for willful violations. Two separate reporting requirements tend to get conflated by landlords and anyone with money outside the U.S.: issuing 1099s to contractors you pay for property work, and disclosing foreign financial accounts to the Treasury. Both have real deadlines and real penalties, and both changed meaningfully under recent legislation. Covered in this Article: [Toggle](#) - [1099 Reporting for Landlords: The Threshold Just Changed](#1099_Reporting_for_Landlords_The_Threshold_Just_Changed) - [FBAR: Foreign Bank Account Reporting](#FBAR_Foreign_Bank_Account_Reporting) - [What Changed for Rental Property Owners Under OBBBA](#What_Changed_for_Rental_Property_Owners_Under_OBBBA) - [Looking Ahead: 2027](#Looking_Ahead_2027) ## 1099 Reporting for Landlords: The Threshold Just Changed If you own rental property and pay a contractor — a plumber, painter, handyman, property manager, or accountant — for services related to that property, you may need to issue them a **Form 1099-NEC** (nonemployee compensation) at year-end. **What changed for 2026:** the filing threshold rose from $600 to **$2,000** in total payments made to a given contractor during the tax year. If you paid a contractor $1,800 total in 2026, you’re no longer required to issue a 1099-NEC — though the contractor still owes tax on that income regardless of whether you file the form. The $2,000 threshold is scheduled to adjust for inflation starting with the 2027 tax year. A few practical points that haven’t changed: - **Collect a Form W-9** from any contractor before paying them, capturing their legal name, address, and Taxpayer Identification Number (SSN or EIN). This is far easier to get before you cut the final check than after. - **The threshold applies per contractor, per year**, not per individual payment — five separate $500 payments to the same contractor still total $2,500 and cross the threshold. - **If you withheld any federal income tax** from a contractor’s payments, you must file a 1099-NEC regardless of the total amount paid. - **State rules can differ.** Some states still require reporting at lower thresholds or via separate state filings even where the federal threshold no longer applies — check your state’s Department of Revenue if you’re unsure. - This 1099-NEC requirement is separate from the rules governing **Form 1099-K**, which platforms like Airbnb or Venmo use to report payments *you* received — see our [1099-K guide]() for that side of the equation if you rent through a platform. ## FBAR: Foreign Bank Account Reporting If you have a financial interest in, or signature authority over, foreign financial accounts — bank accounts, brokerage accounts, certain foreign pensions — with a combined value exceeding **$10,000** at any point during the year, you’re required to file an FBAR (Report of Foreign Bank and Financial Accounts). **How it’s filed today:** FBAR is no longer the old paper Form 90-22.1 referenced in older guidance. It’s now **FinCEN Form 114**, filed electronically through the Treasury’s BSA E-Filing System, entirely separate from your regular tax return. **Deadline:** FBAR for the 2026 tax year is due **April 15, 2027**, with an **automatic extension to October 15** — you don’t need to file anything to get that extension; it’s built in. **The $10,000 threshold is an aggregate, not a per-account, figure.** If you have three foreign accounts holding $4,000 each, you’ve crossed the threshold and must file, even though no single account exceeds $10,000 on its own. **Penalties are steep.** For 2026, non-willful violations carry penalties up to **$16,536 per violation, per year** (inflation-adjusted annually). Willful violations are far more severe: the greater of **$165,353 or 50% of the account balance** at the time of the violation. Given the penalty exposure, if you’re unsure whether an account qualifies, it’s worth confirming with a tax professional rather than guessing. **Don’t confuse FBAR with FATCA Form 8938.** These are separate requirements with separate thresholds and separate filing locations. Form 8938 (Statement of Specified Foreign Financial Assets) is filed *with* your tax return and kicks in at higher thresholds than FBAR ($50,000+ for single filers living in the U.S., higher still for those living abroad) — you may owe one, both, or neither depending on your situation, so check both independently rather than assuming one covers the other. ## What Changed for Rental Property Owners Under OBBBA Separate from reporting requirements, the One Big Beautiful Bill Act made two permanent changes that meaningfully affect how much tax landlords owe on rental income: **100% bonus depreciation is back, permanently**, for qualifying property placed in service after January 19, 2025. The rental building’s structure itself still depreciates over 27.5 years (residential) — that hasn’t changed — but components with shorter recovery periods, like appliances, carpeting, and certain fixtures, can now be fully expensed in the year they’re placed in service rather than depreciated gradually. Combined with a cost segregation study, this can generate a large first-year deduction for property acquired or substantially renovated in 2026. **The 20% QBI deduction for rental income is now permanent.** Previously set to expire, landlords who qualify can continue deducting 20% of net rental income (subject to the usual limitations around taxable income thresholds and the type of rental activity), with no expiration date to plan around anymore. ## Looking Ahead: 2027 The 1099-NEC threshold itself begins adjusting for inflation with the 2027 tax year, so expect a modest bump above $2,000 once the IRS releases official figures later in 2026. FBAR’s $10,000 threshold has historically stayed flat for many years and isn’t currently scheduled to change, but the penalty amounts do adjust for inflation annually — worth checking the updated figures each filing season if this applies to you. On the depreciation side, since bonus depreciation and the QBI deduction are now permanent rather than temporary provisions, the bigger planning question going forward is less “will this expire” and more “am I structuring purchases and cost segregation studies to take full advantage.” --- See also: [2026-2027 Updates: Best Online Tax Filing Software and Free Filing Options](https://savingtoinvest.com/the-best-tax-software-and-free-filing-options-as-tax-filing-goes-primarily-online/) | [Capital Gains Tax Rates](https://savingtoinvest.com/capital-gains-tax-short-and-long-term-rates-plus-other-factors-to-consider/) | [2026–2027 One Big Beautiful Bill Act (OBBBA)](https://savingtoinvest.com/reconciling-trumps-big-beautiful-bill-bbb/) Frequently Asked Questions QDo I need to send a 1099 to my contractor if I paid them $1,500 in 2026? ANo. The 1099-NEC filing threshold rose from $600 to $2,000 for the 2026 tax year, so payments under $2,000 to a single contractor no longer require a 1099-NEC. The contractor still must report and pay tax on that income regardless of whether you file the form. QWhat is FBAR and who has to file it? AFBAR (FinCEN Form 114) is required if you have a financial interest in or signature authority over foreign financial accounts totaling more than $10,000 combined at any point during the year. It's filed electronically through FinCEN's BSA E-Filing System, separate from your regular tax return. QIs FBAR the same as Form 8938? ANo, though they're often confused. FBAR has a $10,000 aggregate threshold and is filed with FinCEN. Form 8938 (FATCA) is filed with your IRS tax return and has higher thresholds ($50,000+ for single U.S. residents, more for those living abroad). You may owe one, both, or neither - check each independently. QWhat happens if I don't file an FBAR when required? APenalties are significant: up to $16,536 per violation for non-willful failures (2026 inflation-adjusted amount), and the greater of $165,353 or 50% of the account balance for willful violations. Given the exposure, confirm your filing obligation with a tax professional if you're unsure. QHow did OBBBA change rental property depreciation? AOBBBA permanently restored 100% bonus depreciation for qualifying property components (like appliances and certain fixtures) placed in service after January 19, 2025, and made the 20% QBI deduction for rental income permanent - both were previously temporary or scheduled to phase down. **Categories:** Real Estate and Mortgages, Taxes and Retirement **Tags:** Assests, Bank, Foriegn, IRS, Lanlord, Rental --- ### [Protecting Your Social Security Number From Identity Theft in 2026](https://savingtoinvest.com/hacking-social-security-numbers-and-how/) **Published:** July 23, 2009 **Author:** Andy **Content:** ### Key Takeaways - The old risk of statistically 'guessing' Social Security numbers from birth data is largely gone - the SSA moved to fully randomized SSN assignment in June 2011, breaking the predictable regional/sequential pattern that made that possible. - Today's real risk is data breaches and phishing, not number-guessing - your SSN is far more likely to leak through a compromised company database or a convincing fake email than through statistical inference. - An IRS Identity Protection PIN (IP PIN) is free, available to anyone who can verify their identity online, and blocks anyone else from filing a tax return using your SSN - even if they have it. - You're entitled to free weekly credit reports from all three bureaus permanently at annualcreditreport.com, not just once a year as many people still assume. - A credit freeze is free, reversible, and the single most effective step to stop someone from opening new credit in your name - freezing is stronger protection than a fraud alert. Concern about Social Security number security tends to spike after news of a major data breach, and for good reason — your SSN is the master key that ties together your credit history, tax records, and government benefits. But the specific threat has changed over the years, and the protections that actually work today are more concrete than “shred your mail.” Covered in this Article: [Toggle](#) - [How SSN Theft Actually Happens Now](#How_SSN_Theft_Actually_Happens_Now) - [Protecting Your SSN: What Actually Works](#Protecting_Your_SSN_What_Actually_Works) - [What to Do If Your SSN Is Compromised](#What_to_Do_If_Your_SSN_Is_Compromised) - [Looking Ahead: 2027](#Looking_Ahead_2027) ## How SSN Theft Actually Happens Now Back in 2009, researchers at Carnegie Mellon published a widely-cited study showing that Social Security numbers could sometimes be statistically predicted from publicly available birth data — state of birth and date of birth — because SSNs were assigned in a predictable pattern tied to region and issuance date. That research got a lot of attention, and reasonably so at the time. It’s much less relevant today. The Social Security Administration switched to a fully **randomized SSN assignment system in June 2011**, specifically to eliminate the geographic and sequential patterns the prediction method relied on. SSNs issued since then aren’t tied to state of birth or issued in a predictable sequence, which closes off that particular attack. The real risk today comes from more mundane sources: - **Data breaches.** Large-scale breaches at employers, healthcare providers, financial institutions, and government contractors routinely expose SSNs alongside names and addresses — you don’t have to do anything wrong for your number to end up in a breach. - **Phishing and pretexting.** Fake emails, texts, or phone calls impersonating the IRS, SSA, your bank, or an employer’s HR department remain one of the most effective ways scammers extract SSNs directly from victims. - **Physical document theft.** Mail theft, stolen wallets, and documents thrown away unshredded are still meaningful risks, just less exotic than a data breach headline. - **SIM swapping and account takeover.** Scammers increasingly combine a stolen SSN with a hijacked phone number to bypass two-factor authentication and take over financial accounts entirely. ## Protecting Your SSN: What Actually Works **Freeze your credit at all three bureaus.** A credit freeze (Equifax, Experian, and TransUnion) is free, takes a few minutes online, and prevents anyone — including you, temporarily — from opening new credit in your name until you lift it. This is stronger protection than a fraud alert, which only requires lenders to take extra verification steps rather than blocking new credit outright. You can lift a freeze temporarily whenever you need to apply for credit yourself. **Get an IRS Identity Protection PIN (IP PIN).** This is the single most effective step for stopping *tax-related* identity theft specifically. An IP PIN is a six-digit number that only you and the IRS know, and it must be entered on your tax return before the IRS will accept it — blocking anyone else from filing a fraudulent return using your SSN, even if they have it. Anyone who can verify their identity is eligible (not just prior fraud victims), and you can request one: - **Online (fastest):** Through your IRS Online Account, in the IP PIN section of your profile. - **By mail:** File Form 15227 if your income is below the eligibility threshold and you can’t verify your identity online. - **In person:** At a Taxpayer Assistance Center by appointment, for those who can’t use the other methods. A new IP PIN generates each year, so you’ll need to retrieve the current one from your IRS Online Account each filing season — it’s mailed automatically to prior enrollees, but checking online is more reliable. **Check your credit reports for free, weekly.** Free weekly access to your credit report from all three bureaus at [annualcreditreport.com](https://www.annualcreditreport.com) — the only federally authorized source — became permanent, not just a pandemic-era temporary policy. Review them regularly for accounts or inquiries you don’t recognize. **Limit where you give out your SSN.** Most businesses that ask for it — retailers, some medical offices, non-financial services — don’t actually need it and are asking out of convenience, not requirement. It’s reasonable to ask why it’s needed and whether an alternate identifier will work. **Shred sensitive documents.** Anything with your SSN, account numbers, or full name and address combined is worth shredding rather than trashing whole. A cross-cut shredder is inexpensive and meaningfully harder to reconstruct than a strip-cut one. ## What to Do If Your SSN Is Compromised If you know or suspect your SSN has been exposed — from a breach notification letter, a suspicious credit inquiry, or an IRS notice about a return you didn’t file — act in this order: 1. **Freeze your credit** at all three bureaus immediately if you haven’t already. 2. **File an Identity Theft Report** at [IdentityTheft.gov](https://www.identitytheft.gov), the FTC’s dedicated recovery site, which generates a personalized recovery plan and the paperwork you’ll need. 3. **If it’s tax-related** — you get an IRS notice about a return you didn’t file, or your e-filed return is rejected because a return already exists under your SSN — file **Form 14039, Identity Theft Affidavit**, with the IRS, and request an IP PIN going forward if you don’t already have one. 4. **Notify the Social Security Administration** if you believe your SSN itself (not just financial accounts) has been misused for employment or benefits fraud. 5. **Monitor accounts closely** for at least a year, since stolen SSNs are sometimes held and used later rather than immediately. Note that the SSA will only issue a new Social Security number in narrow circumstances — ongoing harassment, abuse, or life-threatening situations tied to the number itself — not simply because it was exposed in a breach. For the vast majority of cases, the correct response is the freeze-and-monitor process above, not requesting a new number. ## Looking Ahead: 2027 Expect tax-related identity theft to remain the most common form of SSN misuse people encounter directly, since a stolen SSN plus basic personal information is often enough to attempt a fraudulent refund claim before the real taxpayer files. If you don’t already have an IP PIN, enrolling before the 2027 filing season opens is the most concrete step you can take — it closes off this specific attack regardless of whether your SSN has already leaked in a breach you don’t know about yet. --- See also: [Would You Be Considered Poor Based on Federal Poverty Levels?](https://savingtoinvest.com/would-you-be-considered-poor-based-on-federal-poverty-levels/) | [How to Maximize Your Tax Refund](https://savingtoinvest.com/how-to-save-money-on-taxes-and-maximize-my-tax-refund/) | [When Can I File My Taxes in 2027?](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) Frequently Asked Questions QCan someone still statistically guess my Social Security number? AMuch less easily than before 2011. A 2009 Carnegie Mellon study showed SSNs could sometimes be predicted from birth data because of a predictable regional/sequential assignment pattern. The SSA switched to fully randomized SSN assignment in June 2011 specifically to close that vulnerability, so numbers issued since then aren't predictable the same way. QWhat is an IRS Identity Protection PIN and do I need one? AAn IP PIN is a free six-digit code that must be entered on your tax return before the IRS accepts it, blocking anyone else from filing a fraudulent return with your SSN. It's available to anyone who can verify their identity online through an IRS Online Account, not just prior fraud victims, and is the most effective defense against tax-related identity theft specifically. QHow often can I check my credit report for free? AWeekly, from all three bureaus, permanently - at annualcreditreport.com, the only federally authorized free source. This became a permanent policy rather than the once-a-year rule many people still remember. QWhat should I do if I get an IRS notice about a tax return I didn't file? AFile Form 14039 (Identity Theft Affidavit) with the IRS right away, and enroll in the IP PIN program going forward if you haven't already. Also freeze your credit at all three bureaus and file a report at IdentityTheft.gov, since a stolen SSN used for tax fraud is often being used elsewhere too. QCan I get a new Social Security number if mine is stolen? ARarely. The SSA only issues new numbers in narrow circumstances like ongoing harassment or life-threatening situations tied to the number - not simply because it appeared in a data breach. For most identity theft cases, freezing your credit and monitoring your accounts is the standard response instead. **Categories:** Personal Finance and Money **Tags:** credit score, identity, Protection --- ### [Summer EBT (SUN Bucks) 2026: $120 Per Child — Which States Are Participating](https://savingtoinvest.com/40-grocery-summer-ebt-benefit-for-kids-snap/) **Published:** December 24, 2022 **Author:** Andy **Content:** ### Key Takeaways - Eligible families get $120 per child in 2026 (higher in Hawaii and U.S. territories), paid as a lump sum or three $40 monthly deposits depending on the state. - 39 states plus Washington D.C. are participating in 2026, including new participant Iowa, but 12 states - including Florida, Texas, and Georgia - are sitting it out. - Most families don't need to apply: kids on SNAP, TANF, or FDPIR, or approved for free/reduced-price school meals, are automatically eligible. - Not automatically eligible? You can still apply if household income is under 185% of the federal poverty line - about $50,500/year for a family of three. - Benefits expire 122 days after they're issued, so use the card before it lapses. - Summer EBT is separate from SNAP and the Child Tax Credit - getting it doesn't reduce what you're owed from either program, and being on SNAP already makes you automatically eligible. Summer EBT — also called **SUN Bucks** — is now a permanent federal program that puts grocery money on a card for kids during summer break, when school meals aren’t available. It’s in its third year in 2026, and the benefit amount and list of participating states have both changed since it launched. Covered in this Article: [Toggle](#) - [How Much Is the 2026 Summer EBT Benefit?](#How_Much_Is_the_2026_Summer_EBT_Benefit) - [Which States Are Participating in Summer EBT 2026?](#Which_States_Are_Participating_in_Summer_EBT_2026) - [Which States Are NOT Participating in 2026?](#Which_States_Are_NOT_Participating_in_2026) - [Who’s Automatically Eligible?](#Whos_Automatically_Eligible) - [Do I Need to Apply?](#Do_I_Need_to_Apply) - [When Will I Get My Card or Deposit?](#When_Will_I_Get_My_Card_or_Deposit) - [What Can You Buy With Summer EBT?](#What_Can_You_Buy_With_Summer_EBT) - [Looking Ahead: 2027](#Looking_Ahead_2027) ## How Much Is the 2026 Summer EBT Benefit? Eligible families get **$120 per child** for summer 2026, delivered either as a lump sum or as $40 monthly deposits, depending on the state. Two children means $240, three means $360, and so on — there’s no cap on the number of eligible kids in a household. Hawaii and most U.S. territories get a higher amount to reflect cost of living: **$189 per child in Hawaii** and **$180 per child** in most territories. ## Which States Are Participating in Summer EBT 2026? 39 states plus Washington D.C. are running Summer EBT in 2026: Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming. **Iowa is new to the program for 2026.** Puerto Rico, Guam, American Samoa, the Northern Mariana Islands, and the U.S. Virgin Islands also participate, along with five tribal nations in Oklahoma (Cherokee, Chickasaw, Choctaw, Muscogee Creek, and Otoe-Missouria) that run their own programs even though Oklahoma as a state has opted out. ## Which States Are NOT Participating in 2026? Twelve states are sitting out Summer EBT for 2026: **Alaska, Florida, Georgia, Idaho, Indiana, Mississippi, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, and Utah.** Utah participated in 2025 but opted out for 2026. If you’re in one of these states, look into the [Summer Food Service Program](https://www.fna.usda.gov/sfsp) instead, which offers free meals at schools, parks, and other sites, including grab-and-go meals in some rural areas. ## Who’s Automatically Eligible? Your child is automatically eligible — no application needed — if your household already receives [SNAP](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/), TANF, or FDPIR benefits, or if your child is approved for free or reduced-price meals through the National School Lunch or School Breakfast Program. In most states, kids on Medicaid also qualify automatically. Kids in foster care, Head Start, or migrant families, or who are experiencing homelessness, generally qualify automatically too. If you have kids at home, it’s also worth checking whether you qualify for the [Child Tax Credit](https://savingtoinvest.com/child-and-kiddie-tax-credit-and-income-thresholds/) — up to $2,200 per child under the current OBBBA rules. It’s a completely separate benefit with its own eligibility rules, so qualifying for Summer EBT doesn’t automatically mean you’re getting the CTC too, and vice versa. ## Do I Need to Apply? If you’re not automatically eligible, you can still apply if your household income is under 185% of the federal poverty line (for example, under about $50,500/year for a household of three). Applications go through your state’s Summer EBT or SUN Bucks website — each state runs its own portal and sets its own deadline, typically in August. Check your state’s program page for the exact date. ## When Will I Get My Card or Deposit? Most states are issuing benefits between mid-May and early July 2026, with a handful of states still finalizing exact dates. Depending on your state, the money lands on your existing SNAP EBT card, last year’s Summer EBT card, or a new card mailed to your address on file. If you’ve moved recently, update your address with your child’s school and your SNAP office so the card doesn’t go to the wrong place. Once loaded, benefits expire 122 days after the issuance date, so don’t let the card sit unused. ## What Can You Buy With Summer EBT? Summer EBT follows the same purchasing rules as regular SNAP: fruits and vegetables, meat, poultry and fish, dairy, bread and cereal, and snack foods are all covered. It can’t be used for hot prepared food, alcohol, tobacco, vitamins, pet food, or household items like diapers or paper towels. If your state has a SNAP junk-food restriction in place, the same restriction applies to your Summer EBT card. ## Looking Ahead: 2027 Summer EBT is now a permanent program under federal law, so it isn’t going away — the open question each year is which states opt in and what the inflation-adjusted benefit amount will be. Iowa’s 2026 debut suggests more of the current holdout states could join in 2027, though states like Florida and Texas have shown no indication of reversing course. I’ll update this page once USDA publishes 2027 benefit levels and states confirm participation, typically in the spring. For the latest on SNAP benefit amounts and deposit dates in your state, see our [SNAP benefits guide](https://savingtoinvest.com/snap-food-stamp-benefit-amounts/). Frequently Asked Questions QHow much is the Summer EBT benefit in 2026? AEligible families get $120 per child, or $189 per child in Hawaii and $180 per child in most U.S. territories. Benefits are paid as either a single lump sum or three $40 monthly deposits, depending on the state. QWhich states are not participating in Summer EBT in 2026? AAlaska, Florida, Georgia, Idaho, Indiana, Mississippi, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, and Utah are not running Summer EBT in 2026. Utah dropped out after participating in 2025. QDo I need to apply for Summer EBT? AMost families don't need to apply. Children are automatically eligible if their household receives SNAP, TANF, or FDPIR benefits, or if the child is approved for free or reduced-price school meals. Families who aren't automatically eligible can still apply if household income is under 185% of the federal poverty line. QWhen will I get my Summer EBT card or deposit in 2026? AMost states are issuing benefits between mid-May and early July 2026. The money may load onto your existing SNAP EBT card, last year's Summer EBT card, or a new card mailed to you, depending on your state. QDoes Summer EBT expire? AYes. Summer EBT benefits expire 122 days after they're issued to your card, so it's important to use them before they expire. QCan I get Summer EBT and SNAP at the same time? AYes. Summer EBT is a separate benefit on top of regular SNAP, not a replacement for it. In fact, being on SNAP is one of the easiest paths to automatic Summer EBT eligibility - you don't need a separate application. QDoes getting Summer EBT affect my Child Tax Credit or other benefits? ANo. Summer EBT isn't counted as taxable income and doesn't reduce your eligibility for other programs like the Child Tax Credit or SNAP. Each program has its own separate eligibility rules. **Categories:** Taxes and Retirement --- ### [2026-2027 Medicare Premiums, Deductibles and IRMAA — Part A, B and D Amounts](https://savingtoinvest.com/medicare-premiums-and-coinsurance-rates-for-part-b-medical-insurance-and-part-a-hospital-insurance/) **Published:** November 20, 2010 **Author:** Andy **Content:** ### Key Takeaways - The 2026 standard Medicare Part B premium is $202.90/month (up from $185) with a $283 annual deductible. - Part A is premium-free for most, but the inpatient hospital deductible is $1,736 per benefit period in 2026. - IRMAA surcharges kick in above $109,000 single / $218,000 joint MAGI - based on your 2024 income - and push total Part B premiums as high as $689.90/month. - IRMAA brackets are cliffs: $1 over a threshold costs the full surcharge, so manage Roth conversions and capital gains near bracket lines. - Income dropped since 2024 due to retirement or another life event? File Form SSA-44 to use your current income instead. The headline number for 2026: the standard **Medicare Part B premium is $202.90 per month**, one of the larger year-over-year jumps in the program’s history, with the **Part B annual deductible at $283**. For most retirees the premium comes straight out of the monthly Social Security check — which is why the size of each year’s [Social Security COLA](https://savingtoinvest.com/social-security-tax-and-cost-of-living-adjustment-cola/) matters so much; Part B increases eat a real chunk of it. Here are all the 2026 amounts from the [CMS fact sheet](https://www.cms.gov/newsroom/fact-sheets/2026-medicare-parts-b-premiums-deductibles), plus the income surcharges that catch higher-income retirees off guard. For the broader picture of what else changed in 2026 — the new Part D drug spending cap, Medicare Advantage benefit cuts, and the Wellcare disenrollment issue — see my [Changes to Your 2026 Medicare Coverage](https://savingtoinvest.com/changes-to-your-2026-medicare-coverage/) guide. Covered in this Article: [Toggle](#) - [Part A (Hospital Insurance) — 2026](#Part_A_Hospital_Insurance_%E2%80%94_2026) - [Part B (Medical Insurance) — 2026](#Part_B_Medical_Insurance_%E2%80%94_2026) - [IRMAA: The Income Surcharge Brackets for 2026](#IRMAA_The_Income_Surcharge_Brackets_for_2026) - [Why the Big Premium Jump This Year](#Why_the_Big_Premium_Jump_This_Year) - [Looking Ahead: 2027](#Looking_Ahead_2027) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## Part A (Hospital Insurance) — 2026 Most people pay **no Part A premium** — you’ve prepaid it through 40+ quarters of Medicare payroll taxes. If you have 30-39 quarters, the buy-in premium applies, and fewer than 30 quarters pays the full premium. The costs you can actually face under Part A are the per-benefit-period amounts: Part A cost2026 amountInpatient hospital deductible (per benefit period)$1,736Daily coinsurance, days 61–90$434Daily coinsurance, lifetime reserve days$868Skilled nursing facility coinsurance, days 21–100$217 ## Part B (Medical Insurance) — 2026 The standard monthly premium is **$202.90** (up from $185.00 in 2025) and the annual deductible is **$283** (up from $257). After the deductible, you generally pay 20% coinsurance on covered services — which is the gap Medigap and Medicare Advantage plans exist to manage. New enrollees and anyone weighing Advantage vs Original Medicare should factor the premium jump into the whole-package comparison, including the [grocery and supplemental benefit changes](https://savingtoinvest.com/grocery-benefits-under-medicare-advantage-and-snap-for-seniors/) that hit Medicare Advantage plans this year. ## IRMAA: The Income Surcharge Brackets for 2026 If your modified adjusted gross income (MAGI) from **2024** (IRMAA always looks back two years) exceeded $109,000 single / $218,000 joint, you pay an income-related surcharge on both Part B and Part D: 2024 MAGI (single)2024 MAGI (joint)2026 total Part B premiumPart D surcharge≤ $109,000≤ $218,000$202.90$0$109,001–$137,000$218,001–$274,000$284.10$14.50$137,001–$171,000$274,001–$342,000$405.80$37.50$171,001–$205,000$342,001–$410,000$527.50$60.40$205,001–$499,999$410,001–$749,999$649.30$83.30$500,000+$750,000+$689.90$91.00 Two IRMAA points I flag for readers every year. First, it’s a **cliff, not a slope** — one dollar of MAGI over a threshold triggers the full surcharge for the year, so year-end Roth conversions and capital gains near a bracket line deserve real care. Second, if your income has dropped since 2024 because of a **life-changing event** (retirement, death of a spouse, divorce), file **Form SSA-44** to ask Social Security to use your more recent, lower income instead of the two-year lookback. **Quick example:** Tom and Sue retired in 2025. Their 2024 MAGI (his final working year) was $290,000, so in 2026 they’re each billed $405.80/month for Part B. Since retirement is a qualifying life-changing event and their income is now ~$120,000, an SSA-44 filing gets them back to the standard $202.90 each — saving them roughly $4,870 for the year. That form is criminally under-used. ## Why the Big Premium Jump This Year CMS attributes the increase to overall medical cost growth and higher projected spending. For retirees the practical effect is that the 2026 Social Security COLA was partially absorbed by the Part B increase before it ever hit bank accounts — the “hold harmless” rule protects most beneficiaries from a net-negative check, but the squeeze is real for those with smaller benefits. ## Looking Ahead: 2027 The 2027 premium, deductible, and IRMAA numbers will be announced by CMS in the fall (typically October-November 2026), alongside the 2027 Social Security COLA. Based on current medical-cost trends, I’d expect another meaningful Part B increase — the trustees’ reports have flagged continued spending growth — and IRMAA thresholds will get their usual inflation adjustment, with 2027 surcharges keyed to your **2025** income. If you’re doing [Roth conversions](https://savingtoinvest.com/roth-ira-contribution-and-income-limits-plus-conversion-or-rollover-rules/ "2026 Roth IRA Contribution and Income Limits — Plus Catch-Up and Conversion Rules") or realizing gains this year, remember 2026 income sets your 2028 IRMAA. I’ll update this page when CMS publishes the 2027 amounts. ## Common Issues to Watch Out For - **Forgetting the two-year lookback.** Your 2026 IRMAA is based on 2024 income — and this year’s income sets 2028’s premiums. Plan conversions and gains accordingly. - **Not filing SSA-44 after retiring.** If your income dropped due to retirement or another life event, you don’t have to wait out the lookback — file the form. - **Tripping an IRMAA cliff by $1.** The brackets aren’t marginal; crossing a line costs the full surcharge on 12 months of premiums for both spouses. - **Ignoring the Part A benefit-period structure.** The $1,736 hospital deductible is per benefit period, not per year — multiple hospitalizations can trigger it more than once. - **Comparing plans on premium alone.** The Part B jump plus 2026’s supplemental-benefit cutbacks in many Advantage plans mean the total cost picture changed more than usual this year. Frequently Asked Questions QWhat is the Medicare Part B premium for 2026? AThe standard premium is $202.90 per month, up from $185.00 in 2025. The Part B annual deductible is $283. QWhat are the 2026 IRMAA income thresholds? ASurcharges start above $109,000 MAGI for single filers and $218,000 for joint filers, based on 2024 tax-year income. Total Part B premiums range from $284.10 to $689.90 monthly across the brackets, with Part D surcharges of $14.50 to $91.00. QWhy is my premium based on my income from two years ago? ASocial Security uses the most recent tax return the IRS has processed, which creates the two-year lookback. If your income has since dropped due to a life-changing event like retirement, file Form SSA-44 to have a more recent year used. QIs Medicare Part A really free? AThe premium is $0 for anyone with 40+ quarters of Medicare-taxed work. But Part A still has cost-sharing - a $1,736 inpatient deductible per benefit period and daily coinsurance for extended stays in 2026. QHow does the Part B increase affect my Social Security check? APart B premiums are deducted from Social Security payments, so the 2026 increase absorbed part of the annual COLA. The hold-harmless rule prevents most beneficiaries' net checks from shrinking, but it can flatten the raise. QWhen will 2027 Medicare premiums be announced? ACMS typically announces the following year's premiums, deductibles, and IRMAA brackets in October or November - around the same time as the Social Security COLA announcement. **Categories:** Insurance **Tags:** health insurance, hospital, medicare, Part A, Part B --- ### [2026–2027 ACA Marketplace Health Insurance Subsidies: The Enhanced Tax Credits Are Gone — Here's What You Actually Pay Now](https://savingtoinvest.com/obamacare-health-insurance-subsidies-and-tax-credits/) **Published:** June 26, 2013 **Author:** Andy **Content:** ### Key Takeaways - The enhanced premium tax credits from the American Rescue Plan and Inflation Reduction Act expired December 31, 2025 - 2026 coverage reverted to the older, less generous subsidy rules. - The 'subsidy cliff' is back: if your income is even $1 over 400% of the Federal Poverty Level, you get zero premium tax credit for 2026 and 2027 coverage. From 2021-2025 there was no hard cliff. - The share of income you're expected to pay toward a benchmark Silver plan roughly doubled or tripled at lower income levels in 2026 compared to 2025. - 2026 subsidy eligibility uses 2025 FPL figures ($15,650 for one person, $32,150 for a family of four in the lower 48) - subsidy math always runs one year behind due to the standard lag. - Insurers have proposed a median 14% premium increase for 2027 in preliminary rate filings - the second straight year of double-digit hikes. - Open enrollment for 2027 coverage runs November 1, 2026 to January 15, 2027; enroll by December 15, 2026 for coverage starting January 1, 2027. If you bought ACA marketplace coverage for 2026 and your premium jumped — sometimes by hundreds of dollars a month — you’re not imagining it. The enhanced premium tax credits that made Obamacare coverage cheap for millions of people expired at the end of 2025, and Congress hasn’t renewed them. For 2026 and 2027 coverage, the marketplace reverted to the original, less generous ACA subsidy rules that were in place before 2021. This guide walks through what actually changed, what income limits apply now, and what to expect when you shop for 2027 coverage during open enrollment this fall. Covered in this Article: [Toggle](#) - [What Changed: The Enhanced Subsidies Are Gone](#What_Changed_The_Enhanced_Subsidies_Are_Gone) - [The Subsidy Cliff Is Back](#The_Subsidy_Cliff_Is_Back) - [2026 and 2027 Income Limits by Household Size](#2026_and_2027_Income_Limits_by_Household_Size) - [What You’re Expected to Pay Went Up Sharply](#What_Youre_Expected_to_Pay_Went_Up_Sharply) - [Cost-Sharing Reductions Still Apply Under 250% FPL](#Cost-Sharing_Reductions_Still_Apply_Under_250_FPL) - [Minimum Income and the Medicaid Gap](#Minimum_Income_and_the_Medicaid_Gap) - [2027 Premiums: Expect Another Round of Increases](#2027_Premiums_Expect_Another_Round_of_Increases) - [Open Enrollment for 2027 Coverage](#Open_Enrollment_for_2027_Coverage) - [Reconciling Your Subsidy at Tax Time](#Reconciling_Your_Subsidy_at_Tax_Time) - [Looking Ahead: 2028](#Looking_Ahead_2028) ## What Changed: The Enhanced Subsidies Are Gone From 2021 through 2025, two pieces of legislation — the American Rescue Plan and then the Inflation Reduction Act — temporarily boosted ACA premium tax credits in two ways: they lowered the percentage of income everyone was expected to pay toward coverage, and they eliminated the hard income cutoff at 400% of the Federal Poverty Level (FPL), letting higher earners qualify for at least a partial subsidy. Both of those enhancements expired on December 31, 2025. Nothing replaced them. As a result, 2026 marketplace coverage — and now 2027 coverage — runs under the original ACA subsidy formula: a steeper sliding scale of what you owe, and a firm cutoff at 400% FPL where the subsidy disappears entirely. The practical result: people who kept their same income and same plan saw their monthly premium increase substantially for 2026, purely because the subsidy math changed under them. Estimates put the average increase in what enrollees pay out of pocket at around 58% nationally for 2026, with the biggest hit falling on people just above 400% FPL who lost their subsidy completely. ## The Subsidy Cliff Is Back The single most important change to understand: if your Modified Adjusted Gross Income (MAGI) is even $1 over 400% of the FPL for your household size, you get **zero** premium tax credit. Not a reduced amount — none. This is different from 2021-2025, when there was no upper income limit; subsidies just phased down gradually as income rose. That gradual slope is gone for 2026 and 2027. If your income is likely to land close to the 400% line, it’s worth modeling both sides carefully before you finalize your enrollment, since crossing it by a small margin can mean paying full price for the year and owing back any subsidy already received when you file your taxes. ## 2026 and 2027 Income Limits by Household Size Marketplace subsidy eligibility is based on your MAGI compared to the Federal Poverty Level for your household size — but there’s a one-year lag built into the calculation. Your eligibility for **2026 coverage** is based on the FPL figures published in **2025**. Your eligibility for **2027 coverage** will be based on the FPL figures published in **2026**. **Federal Poverty Level — 48 Contiguous States and Washington DC** Household Size2025 FPL (used for 2026 coverage)2026 FPL (used for 2027 coverage)1$15,060$15,6502$20,440$21,1503$25,820$26,6504$31,200$32,1505$36,580$37,6506$41,960$43,150 Add roughly $5,380 (2025) or $5,500 (2026) per additional household member beyond 8. Alaska and Hawaii use higher FPL figures — check healthcare.gov if you live in either state. The 400% cutoff for a family of four, for example, works out to about $124,800 based on the 2025 FPL used for 2026 coverage. Go one dollar over that on your 2026 tax return and the full-year subsidy is gone. ## What You’re Expected to Pay Went Up Sharply Even for people who still qualify for a subsidy, the amount you’re expected to contribute toward the benchmark plan (the second-lowest-cost Silver plan in your area) increased substantially for 2026. The IRS publishes these “applicable percentages” — the share of your income you’re expected to pay toward that benchmark plan before the subsidy covers the rest. Income (% of FPL)20252026Under 133%0%2.1%133% – 150%0%3.14% – 4.19%150% – 200%0% – 2%4.19% – 6.6%200% – 250%2% – 4%6.6% – 8.44%250% – 300%4% – 6%8.44% – 9.96%300% – 400%6% – 8.5%9.96%Over 400%8.5%No subsidy — full price At the lower end of the income scale, what you’re expected to pay roughly doubled or tripled between 2025 and 2026. Someone at 150% of FPL who paid nothing toward the benchmark plan in 2025 might now owe over 4% of their income toward it in 2026. ### A Rough Example A single 45-year-old with $40,000 in MAGI (about 256% of the 2025 FPL used for 2026 coverage) falls in the 250%–300% tier. At roughly 9% of income, that’s about $3,600 a year, or $300/month, toward the benchmark Silver plan — up meaningfully from what the same income would have owed in 2025. If the benchmark plan itself costs more than that in their area, the subsidy covers the difference; if it costs less, they pay the lower amount. Because benchmark premiums vary a lot by state, county, and age, the healthcare.gov subsidy calculator (or your state’s own exchange calculator, if you’re not in a federal-marketplace state) is the only way to get an exact number for your situation. ## Cost-Sharing Reductions Still Apply Under 250% FPL Separate from the premium tax credit, if your MAGI is under 250% of FPL, you also qualify for cost-sharing reductions — lower deductibles, copays, and out-of-pocket maximums — but only if you enroll in a Silver plan. This part of the ACA wasn’t affected by the enhanced-subsidy expiration. If you’re in this income range, a Silver plan often ends up cheaper in total cost than a Bronze plan even though the sticker premium is higher, because of the reduced cost-sharing. ## Minimum Income and the Medicaid Gap There’s a floor as well as a ceiling. To buy subsidized marketplace coverage, your estimated income generally needs to be at least 138% of FPL in states that expanded Medicaid (most states), or 100% of FPL in states that didn’t. If your income is below that floor, the marketplace routes you to Medicaid instead. As of 2026, these states have not expanded Medicaid: Alabama, Florida, Georgia, Kansas, Mississippi, South Carolina, Tennessee, Texas, Wisconsin, and Wyoming. If you live in one of these states and your income falls between 100% and 138% of FPL, you may be caught in the “Medicaid gap” — too high for Medicaid, but technically eligible for marketplace subsidies at that income level. If your income is under 100% FPL in a non-expansion state, you generally won’t qualify for either program. ## 2027 Premiums: Expect Another Round of Increases On top of the subsidy changes, the underlying cost of ACA plans is also rising. Insurers’ preliminary rate filings for 2027 show a proposed median increase of around 14% — the second consecutive year of double-digit hikes. Insurers point to a few factors: higher medical costs generally, and a sicker, smaller risk pool left behind after roughly 3 million healthier enrollees dropped coverage in 2026 once their subsidies shrank or disappeared. When healthier, cheaper-to-insure people leave the pool, average costs for those who remain go up — which pushes insurers to raise rates further, a dynamic sometimes called a “premium death spiral” if it continues unchecked. Final, approved 2027 rates won’t be set until later in 2026, closer to open enrollment, so treat the 14% figure as a preliminary signal rather than your actual bill. ## Open Enrollment for 2027 Coverage Mark your calendar: - **Open enrollment:** November 1, 2026 – January 15, 2027 - **Enroll by December 15, 2026** for coverage effective January 1, 2027 - Enroll between December 16, 2026 and January 15, 2027, and coverage generally starts February 1, 2027 Outside these dates, you can only enroll if you qualify for a Special Enrollment Period — triggered by things like losing job-based coverage, marriage, having a baby, or moving. ## Reconciling Your Subsidy at Tax Time Whatever subsidy amount the marketplace estimates for you during enrollment is just that — an estimate, based on the income you project for the year. When you file your taxes, you’ll reconcile the subsidy you actually received against what you were actually eligible for, using IRS Form 8962. If your income came in lower than projected, you may get an additional credit on your return. If it came in higher — especially if it crossed the 400% FPL cliff — you may have to repay some or all of the subsidy you received during the year. There’s a repayment cap for people under 400% FPL who slightly overestimated their eligibility, but that cap doesn’t apply if your final income lands over 400% FPL; in that case, you can owe back the full amount. If your income is uncertain — freelance income, a possible year-end capital gain, a Roth conversion you’re considering — it’s worth updating your income estimate with the marketplace during the year rather than waiting to find out at tax time. ## Looking Ahead: 2028 Nothing currently scheduled changes this picture for 2028 — the enhanced subsidies remain expired unless Congress acts to restore them, which would require new legislation rather than an automatic renewal. Watch for congressional action ahead of the 2027 open enrollment period (fall 2026), since that’s the most likely window for any changes to affect 2027 coverage; absent new legislation, expect the same 400% FPL cliff and applicable-percentage schedule to carry into 2028 with routine inflation adjustments to the dollar figures. I’ll update this page as the IRS publishes 2027 applicable percentages and as final 2027 premium rates are approved. Frequently Asked Questions QDid ACA health insurance subsidies go away completely in 2026? ANo, but they got significantly less generous. The temporary enhancements from 2021-2025 expired, so the ACA reverted to its original, pre-2021 subsidy formula: a steeper income-based payment scale and a hard cutoff at 400% of the Federal Poverty Level, above which no subsidy is available at all. QWhat is the ACA subsidy cliff and why does it matter for 2026 and 2027? AIt's the income cutoff at 400% of the Federal Poverty Level. From 2021-2025 there was no hard cutoff - subsidies just shrank gradually as income rose. That protection expired, so for 2026 and 2027 coverage, going even $1 over 400% FPL means losing 100% of your premium tax credit for the year. QHow much will my premium go up in 2026 compared to 2025? AIt depends heavily on your income and where you fall relative to the FPL, but nationally, out-of-pocket premiums for subsidized enrollees rose by an estimated 58% on average for 2026. People just above 400% FPL who lost their subsidy entirely saw the largest increases. QWhat income counts toward the 400% FPL limit? AYour household's Modified Adjusted Gross Income (MAGI) - generally your AGI plus any tax-exempt interest and non-taxable Social Security benefits. Pre-tax retirement contributions, HSA contributions, and certain other above-the-line deductions reduce your MAGI and can help you stay under the cliff. QAre premiums going up again for 2027? AInsurers' preliminary rate filings show a proposed median increase of about 14% for 2027 - the second year in a row of double-digit hikes. Final approved rates typically aren't set until closer to the November 2026 open enrollment period. QWhen is open enrollment for 2027 ACA coverage? ANovember 1, 2026 through January 15, 2027. Enroll by December 15, 2026 for coverage starting January 1, 2027; enrolling after that but before January 15 generally starts coverage February 1, 2027. QWhat happens if my income ends up higher than I estimated when I enrolled? AYou'll reconcile your subsidy on Form 8962 when you file taxes. If your final income is under 400% FPL, there's a repayment cap on how much subsidy you have to pay back. If your final income crosses 400% FPL, that cap doesn't apply, and you may owe back the full subsidy amount you received during the year. **Categories:** Insurance **Tags:** 2016, 2017, ACA, health insurance, premium, subsidy, Tax Credit --- ### [2026-2027 Saver's Tax Credit Income Limits and How to Claim It](https://savingtoinvest.com/savers-tax-credit-and-income-limits-to-help-workers-save-for-retirement/) **Published:** November 9, 2014 **Author:** Andy **Content:** ### Key Takeaways - The Saver's Credit (formally the Retirement Savings Contributions Credit) is worth up to $1,000 for single filers and $2,000 for married couples. - For 2026, the income limit for married filing jointly is $80,500 (up from $79,000 in 2025). - Head of household limit: $60,375. Single / MFS limit: $40,250. - The credit rate is 50%, 20%, or 10% of up to $2,000 in contributions ($4,000 MFJ), depending on your income tier. - Eligible contributions include 401(k), 403(b), IRA, Roth IRA, SIMPLE IRA, SEP IRA, and 457(b) plans. - You must be 18+, not a full-time student, and not a dependent on someone else's return. - Claim the credit on IRS Form 8880. The Saver’s Credit gives lower- and moderate-income workers a direct tax credit — not just a deduction — for contributing to a retirement account. For 2026, the income limits increased across all filing statuses, so more people now qualify than in prior years. The IRS confirmed these thresholds in [Notice IR-2025-111](https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500), as part of the annual COLA adjustments. Covered in this Article: [Toggle](#) - [2026 Saver’s Credit Income Limits by Filing Status](#2026_Savers_Credit_Income_Limits_by_Filing_Status) - [2026 Credit Rate Tiers (Married Filing Jointly)](#2026_Credit_Rate_Tiers_Married_Filing_Jointly) - [2026 Credit Rate Tiers (Head of Household)](#2026_Credit_Rate_Tiers_Head_of_Household) - [2026 Credit Rate Tiers (Single / MFS)](#2026_Credit_Rate_Tiers_Single_MFS) - [Example: How the Saver’s Credit Works](#Example_How_the_Savers_Credit_Works) - [What Contributions Count?](#What_Contributions_Count) - [Who Qualifies?](#Who_Qualifies) - [How to Claim It](#How_to_Claim_It) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027](#Looking_Ahead_2027) ## 2026 Saver’s Credit Income Limits by Filing Status Filing Status2025 Limit2026 Limit2027 (est.)Married Filing Jointly$79,000$80,500$82,500Head of Household$59,250$60,375$61,750Single / Married Filing Separately$39,500$40,250$41,250 **Looking ahead to 2027:** Based on ~2.5% COLA, income limits are projected to rise to approximately **$82,500** (MFJ), **$61,750** (HoH), and **$41,250** (single/MFS). Official 2027 figures typically drop in October or November 2026. These are the maximum AGI figures. If your income exceeds these, you don’t qualify — even by $1. It’s worth looking at ways to reduce your AGI (traditional IRA or 401(k) contributions, HSA contributions) if you’re close to the cutoff. ## 2026 Credit Rate Tiers (Married Filing Jointly) The credit isn’t flat — it steps down as income rises. Here are the 2026 tiers for married filing jointly: 2026 AGI (MFJ)Credit RateMax Credit (per couple)$0 – $48,30050%$2,000$48,301 – $52,50020%$800$52,501 – $80,50010%$400Over $80,5000%$0 ## 2026 Credit Rate Tiers (Head of Household) 2026 AGI (HoH)Credit RateMax Credit$0 – $36,22550%$1,000$36,226 – $39,37520%$400$39,376 – $60,37510%$200Over $60,3750%$0 ## 2026 Credit Rate Tiers (Single / MFS) 2026 AGI (Single/MFS)Credit RateMax Credit$0 – $24,15050%$1,000$24,151 – $26,25020%$400$26,251 – $40,25010%$200Over $40,2500%$0 The credit is calculated on the first $2,000 you contribute per person ($4,000 for couples filing jointly). The max credit per person is $1,000 ($2,000 per couple at the 50% rate). ### Example: How the Saver’s Credit Works **Maria**, single, earns $22,000 AGI and contributes $1,500 to her IRA in 2026. She’s in the 50% credit rate tier. Her credit: 50% × $1,500 = **$750** directly off her tax bill (not just a deduction). **Tom and Lisa**, married, earn $50,000 combined AGI. They each contribute $2,000 to their 401(k)s — $4,000 total. They’re in the 20% tier. Their credit: 20% × $4,000 = **$800**. That’s $800 straight off what they owe in taxes. > *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get notified when 2027 limits are released in October.* ## What Contributions Count? The following contributions count toward the Saver’s Credit calculation: - [Traditional and Roth IRA contributions](https://savingtoinvest.com/traditional-ira-versus-roth-ira-contribution-and-phase-out-income-limits/) - [401(k), 403(b)](https://savingtoinvest.com/taking-advantage-of-new-401k/), governmental 457(b) elective deferrals - [SIMPLE IRA contributions](https://savingtoinvest.com/simple-ira-contribution-and-income-limits-small-business-retirement-plans/) - [SEP IRA contributions](https://savingtoinvest.com/sep-ira-rules-and-contribution-limits/) (but only voluntary employee contributions, not employer SEP contributions) - Contributions to ABLE accounts (for those with disabilities) **What doesn’t count:** Rollover contributions, distributions you rolled back over, and certain employer-funded contributions. ## Who Qualifies? You must meet all three of these requirements: 1. **Age 18 or older** as of December 31 of the tax year 2. **Not a full-time student** during any 5 months of the year 3. **Not claimed as a dependent** on anyone else’s return The credit is nonrefundable — meaning it can reduce your tax liability to $0, but you don’t get a check for any excess. If your tax bill is already $0, the credit won’t help you. This is one limitation that the proposed SECURE 3.0 discussions have talked about changing, but nothing is in law yet. ## How to Claim It File **[IRS Form 8880](https://www.irs.gov/forms-pubs/about-form-8880)** with your tax return. Most tax software calculates this automatically when you enter your retirement contributions. The credit is claimed for the tax year in which you made the contributions. For 2026 contributions, you’ll claim the credit on your 2026 return (filed by April 2027). IRA contributions made between January 1 and April 15, 2027 can still count for the 2026 tax year — as long as you designate them as 2026 contributions. ## Common Issues to Watch Out For **1. Distributions in the prior 2 years can reduce or eliminate the credit.** If you took a taxable distribution from a retirement account in 2024 or 2025, the IRS reduces your eligible contribution amount for the 2026 credit by that distribution amount. This catches a lot of people off guard. The lookback period is two years before the tax year, plus the current year through the filing deadline. **2. Confusing a credit with a deduction.** A tax credit is dollar-for-dollar off your bill, not a deduction from your income. A $750 Saver’s Credit means $750 less owed — much better than a $750 deduction. **3. Missing it because tax software didn’t ask.** Some tax prep software only surfaces Form 8880 if you answer certain income/contribution questions correctly. If you’re in the income range, verify the form was generated before you file. **4. Thinking full-time student disqualifies a working spouse.** Only the person who is the full-time student is disqualified — not their spouse. A couple can still claim the credit if one partner is a student, based on the other partner’s contributions. **5. Using AGI vs. MAGI.** The Saver’s Credit uses adjusted gross income (AGI), not modified AGI. Pre-tax contributions to a 401(k) or traditional IRA reduce your AGI, which can push you into a higher credit rate tier — sometimes dramatically. If you’re near a tier cutoff, consider increasing your pre-tax contributions. ## Looking Ahead: 2027 Based on [~2.5% COLA trends](https://savingtoinvest.com/social-security-tax-and-cost-of-living-adjustment-cola/), the projected 2027 Saver’s Credit income limits are: Filing Status2026 Limit2027 (est.)Married Filing Jointly$80,500$82,500Head of Household$60,375$61,750Single / MFS$40,250$41,250 These are rough projections. Official figures typically drop in October or November 2026. I’ll update when the IRS announces them. **Important: the Saver’s Credit itself is going away after this.** 2026 is the last tax year the Saver’s Credit applies as a nonrefundable tax credit (claimed on the return you file by April 2027). Starting with contributions made in 2027, the credit is replaced entirely by the new **Saver’s Match** — instead of a credit on your tax bill, the federal government deposits a 50% match (up to $1,000 per person) directly into your retirement account, and it works even if you owe $0 in tax. The first Saver’s Match deposits aren’t expected until early 2028. For the full breakdown of income limits and how the match works, see our [SECURE 2.0 Saver’s Match guide](https://savingtoinvest.com/navigating-the-new-rules-how-the-secure-2-0-act-impacts-your-retirement-catch-up-contributions/). For a full list of 2026 retirement plan contribution limits — including 401(k), IRA, and Roth — see the [401(k) and IRA contribution limits hub](https://savingtoinvest.com/401k-ira-and-roth-ira-contribution-and-income-limits/). Frequently Asked Questions QWhat are the 2026 Saver's Credit income limits? AFor 2026, the Saver's Credit income limit is $80,500 for married filing jointly, $60,375 for head of household, and $40,250 for single filers and married filing separately. These limits increased from 2025 due to annual inflation adjustments. QHow much is the Saver's Credit worth in 2026? AThe Saver's Credit is worth 50%, 20%, or 10% of up to $2,000 in contributions per person ($4,000 per couple). The maximum credit is $1,000 per person ($2,000 per couple) for those in the lowest income tier. QWhat retirement accounts qualify for the Saver's Credit? AContributions to traditional IRAs, Roth IRAs, 401(k), 403(b), governmental 457(b), SIMPLE IRA, and voluntary SEP IRA contributions all count. Rollover contributions and employer-funded contributions do not count. QCan I claim the Saver's Credit if I took a retirement distribution recently? ADistributions taken in the two years before the tax year (and through the filing deadline) can reduce or eliminate your Saver's Credit. The distribution amount is subtracted from your eligible contributions before the credit is calculated. This is a common reason people lose the credit unexpectedly. QHow do I claim the Saver's Credit? AFile IRS Form 8880 with your tax return. Most major tax software programs calculate this automatically when you enter your retirement contributions and income. The credit is nonrefundable - it reduces your tax liability but cannot generate a refund. QDoes my 401(k) contribution count toward the Saver's Credit? AYes. Elective deferrals to a 401(k), 403(b), governmental 457(b), and SIMPLE IRA all count toward the Saver's Credit calculation, on top of IRA contributions. The credit is calculated on the first $2,000 per person contributed. **Categories:** Government Rebates and Payments, Taxes and Retirement **Tags:** 2012, 2013, 2014, 2015, 401K, IRA, IRS, retirement, savers credit --- ### [When Will I Get My W-2, 1099, and 1098 for 2027 Filing? Every Deadline](https://savingtoinvest.com/when-will-i-get-my-w2-1099-1098-tax-forms/) **Published:** January 2, 2017 **Author:** Andy **Content:** ### Key Takeaways - Most W-2s and Forms 1099-NEC/INT/DIV/K covering 2026 income must reach you by February 1, 2027 (the standard January 31 deadline shifted since it falls on a Sunday in 2027). - Form 1099-MISC (rents, royalties, other income) and consolidated 1099-B statements have a later deadline - February 16, 2027 - since the usual February 15 date falls on Presidents Day this year. - Forms 1098, 1098-T, 1098-E, 3921, 3922, and W-2G are also due by February 1, 2027. - Your W-2 reports wages and withholding from your employer; it's not the same as a 1099, which reports payments to non-employees, interest, dividends, or other income. - If a form hasn't arrived by mid-February 2027, contact the issuer first - most delays are administrative, not a sign of a real problem, but you do have IRS options if it truly never shows up. Tax season stalls out fast when you’re missing a document. Here’s exactly when to expect each form covering your 2026 income, what it reports, and what to do if February 2027 comes and goes without it. Covered in this Article: [Toggle](#) - [The Full Deadline List for 2027 Filing (2026 Tax Year)](#The_Full_Deadline_List_for_2027_Filing_2026_Tax_Year) - [Why Some Forms Take Longer Than Others](#Why_Some_Forms_Take_Longer_Than_Others) - [W-2 vs. 1099: What’s the Difference](#W-2_vs_1099_Whats_the_Difference) - [What to Do If a Form Hasn’t Arrived](#What_to_Do_If_a_Form_Hasnt_Arrived) - [A Quick Note on Corrected Forms](#A_Quick_Note_on_Corrected_Forms) - [Looking Ahead: 2028 Filing Season](#Looking_Ahead_2028_Filing_Season) ## The Full Deadline List for 2027 Filing (2026 Tax Year) FormWhat It ReportsDeadline to YouW-2Wages, salary, and tax withholding from an employerFebruary 1, 20271099-NECNon-employee compensation (freelance/contract work)February 1, 20271099-INTInterest income from banks, credit unionsFebruary 1, 20271099-DIVDividend and capital gains distributionsFebruary 1, 20271099-KThird-party payment processor income (see the [current $20,000/200-transaction threshold](https://savingtoinvest.com/1099-k-explained-everything-you-need-to-know-about-this-tax-form/))February 1, 20271099-MISCRents, royalties, prizes, other miscellaneous incomeFebruary 16, 20271099-BProceeds from broker/barter transactionsFebruary 16, 2027 (often bundled into consolidated statements, sometimes later)1098Mortgage interest paidFebruary 1, 20271098-TTuition payments (for education credits)February 1, 20271098-EStudent loan interest paidFebruary 1, 2027W-2GCertain gambling winningsFebruary 1, 2027K-1Partnership, S-corp, or trust income/loss allocationMarch 15, 2027 (often later in practice) The standard deadline for most of these forms is January 31, but that date falls on a **Sunday** in 2027, pushing the deadline to the next business day — **Monday, February 1, 2027**. The 1099-MISC/1099-B deadline normally lands on February 15, but that’s **Presidents Day** in 2027 (a federal holiday), so it shifts to **Tuesday, February 16, 2027**. ## Why Some Forms Take Longer Than Others Forms like the 1099-MISC and 1099-B have later deadlines because the underlying figures are often more complex to finalize — brokerages need to account for wash sales, corrected cost basis, and late-arriving fund distribution data, which is why consolidated 1099 statements from brokerages sometimes arrive (or get corrected) well into February or even March. K-1s are notoriously the latest and least predictable, since they depend on a partnership or S-corp completing its own return first — if you’re a partner or shareholder in a pass-through entity, budget for the possibility of filing an extension if your K-1 is delayed. ## W-2 vs. 1099: What’s the Difference This trips people up constantly, so it’s worth spelling out clearly: **Form W-2** is issued by an employer to an employee. It reports your wages, tips, and other compensation, along with federal, state, Social Security, and Medicare tax withheld throughout the year. Box 1 shows your taxable wages (which is usually lower than your gross salary, since it excludes pre-tax deductions like 401(k) contributions and health insurance premiums). Box 2 shows federal income tax withheld — the number that determines whether you get a refund or owe more. **Form 1099** (in its various flavors — NEC, INT, DIV, MISC, K, B, R) is issued by anyone who isn’t your employer but paid you money that might be taxable: a client who paid you as a freelancer, a bank that paid you interest, a brokerage that paid you dividends, or a payment app. Unlike a W-2, no taxes are typically withheld from 1099 income — which is why self-employed people often need to make [quarterly estimated tax payments](https://savingtoinvest.com/quarterly-estimated-taxes-this-year-what-freelancers-actually-need-to-know/) throughout the year instead of having it withheld automatically. If you worked as an employee for part of 2026 and did freelance work on the side, you’ll receive both a W-2 and one or more 1099s. ## What to Do If a Form Hasn’t Arrived 1. **Wait until at least mid-February 2027.** Mail delays, address changes, and administrative processing account for most “missing” forms. Electronic delivery (many employers/payers now default to this) also means it may be sitting in an online portal you haven’t checked rather than actually delayed. 2. **Check for a digital version first.** Many employers and financial institutions post W-2s and 1099s to an online payroll or account portal before or instead of mailing paper copies. 3. **Contact the issuer directly.** Call your employer’s payroll/HR department or the financial institution to confirm they have your current mailing address and ask them to resend or provide portal access. 4. **If it’s truly lost and the issuer is unresponsive**, the IRS can help. Call the IRS at 800-829-1040 with your employer’s name, address, and dates of employment — the IRS can contact the employer on your behalf and, if needed, provide you with Form 4852 (a substitute for a missing W-2) so you can still file on time. 5. **File on time regardless.** Even without the form in hand, you’re still responsible for reporting the income. If you know your approximate income from pay stubs or account statements, you can estimate and file using Form 4852 or file an extension while you track down the actual document. ## A Quick Note on Corrected Forms If you receive a corrected W-2 (marked “W-2c”) or corrected 1099 after you’ve already filed, don’t ignore it. Compare it against what you originally reported — if the correction changes your taxable income, tax liability, or withholding, you’ll likely need to file an amended return (Form 1040-X) to match the corrected figures and avoid a mismatch notice from the IRS down the line. ## Looking Ahead: 2028 Filing Season The same underlying deadlines (January 31 and February 15, adjusted for weekends/holidays) apply every year, so once 2026 tax year forms are behind you, the next cycle covers 2027 income, with forms due in early 2028. This page will be updated once those exact adjusted dates are confirmed. Frequently Asked Questions QWhen should I have my W-2 for 2026 income by? AEmployers must send W-2s by January 31 in most years; since that date falls on a Sunday in 2027, the deadline shifts to Monday, February 1, 2027. QWhat's the difference between a W-2 and a 1099? AA W-2 comes from an employer and reports wages with taxes already withheld. A 1099 comes from anyone else who paid you (a client, bank, brokerage, or payment app) and typically has no tax withheld, which is why 1099 income often requires estimated quarterly payments. QMy 1099-MISC hasn't arrived yet - is that normal? AYes. Form 1099-MISC has a later deadline (February 16, 2027, since the usual February 15 date falls on Presidents Day) than most other 1099s because the underlying figures - rents, royalties, and similar income - often take longer to finalize. QWhat do I do if my employer never sends my W-2? AFirst check for a digital copy in an online payroll portal and contact your employer directly. If that fails, call the IRS at 800-829-1040 with your employment details - they can follow up with the employer and provide Form 4852 so you can still file on time. QCan I file my taxes before I receive all my forms? AYou can file once you have everything needed to accurately report your income, but filing before a form arrives risks leaving out income or claiming inaccurate withholding. If a form is genuinely delayed, request a filing extension rather than guessing, or use Form 4852 with your best documented estimate. **Categories:** Personal Finance and Money, Taxes and Retirement **Tags:** 2015, dividends, employer, Fidelity, investment, Investments, IRS forms, tax forms. returns, tax returns, Vanguard --- ### [Stuck on Hold With the IRS? Here's How to Get Help In Person Instead](https://savingtoinvest.com/going-to-local-irs-office-and-talking-face-to-face-to-get-updates-on-my-tax-return-processing-and-refund-payment-status/) **Published:** September 8, 2022 **Author:** Andy **Content:** ### Key Takeaways - IRS Taxpayer Assistance Centers (TACs) are open nationwide for in-person help, but appointment-only - you cannot walk in without a confirmed appointment. - Book an appointment via the IRS's local office locator or by calling 844-545-5640; expect anywhere from a few days to several weeks of lead time depending on your location and time of year. - Always exhaust the 'Where's My Refund?' tool and your IRS Online Account first - an in-person agent generally sees the same processing status information you can already see yourself online. - Bring photo ID, your Social Security card or ITIN letter, copies of the tax return in question, any IRS notices you've received, and relevant supporting documents to your appointment. - In-person visits are most useful for complex situations an online tool can't resolve - identity verification issues, unclear notices, or a return that's been stuck in manual review for months. When “Where’s My Refund?” just says “still processing” for months and the phone lines go nowhere, an in-person visit to a local IRS office can genuinely break the logjam — but only if you go in prepared and with realistic expectations about what an agent can actually tell you. Covered in this Article: [Toggle](#) - [Appointments Are Required — No Walk-Ins](#Appointments_Are_Required_%E2%80%94_No_Walk-Ins) - [Exhaust Online and Phone Options First](#Exhaust_Online_and_Phone_Options_First) - [What to Bring to Your Appointment](#What_to_Bring_to_Your_Appointment) - [When an In-Person Visit Actually Helps](#When_an_In-Person_Visit_Actually_Helps) - [What TAC Agents Cannot Do](#What_TAC_Agents_Cannot_Do) ## Appointments Are Required — No Walk-Ins IRS Taxpayer Assistance Centers (TACs) operate by appointment only. Showing up without a scheduled appointment will not get you seen, regardless of how urgent your issue feels. Book through the [IRS’s Taxpayer Assistance Center locator](https://www.irs.gov/help/contact-your-local-irs-office) or by calling **844-545-5640**. You’ll receive a confirmation with your appointment date, time, and location. Lead times vary significantly by location and season — during peak filing season (roughly late January through April), expect longer waits for an available slot than during the summer or fall. ## Exhaust Online and Phone Options First This is the most important practical tip: **an in-person agent generally has access to the same processing status information you can already see through IRS.gov**. Before booking a TAC appointment, make sure you’ve already tried: - **“Where’s My Refund?”** for basic refund status - **Your IRS Online Account** (irs.gov/account) — this shows more detail than the refund tool, including transcripts, notices, and payment history - **Your tax transcript**, which can reveal processing codes that explain exactly where your return stands — see [what your IRS transcript tells you about refund status](https://savingtoinvest.com/using-your-irs-transcript-to-get-your-tax-return-and-refund-processing-status-and-key-dates/) for how to read it If none of these resolve your question, or if your situation is genuinely complex — an identity verification hold, a confusing notice, a return stuck in manual review beyond normal timeframes — an in-person visit becomes much more worthwhile, since a TAC agent can access case-specific details and sometimes take direct action that phone support cannot. ## What to Bring to Your Appointment Don’t go to your appointment without: - **Government-issued photo ID** (driver’s license, passport, state ID) - **Social Security card, or an ITIN assignment letter** if you don’t have an SSN - **A copy of the tax return in question**, including any schedules - **Any IRS notices or letters** you’ve received related to the issue - **Supporting documents** relevant to your situation — W-2s, 1099s, prior-year returns, proof of payments made, or anything referenced in an IRS notice - **Your appointment confirmation** (email or letter) Missing documentation is one of the most common reasons a visit doesn’t resolve anything — the agent may not be able to help without proper identity verification and supporting paperwork on hand. ## When an In-Person Visit Actually Helps **Good reasons to go:** - You’ve been asked to verify your identity and the online verification tool isn’t working - You received a confusing notice and need it explained in plain language - Your return has been stuck in processing well beyond the [normal refund schedule](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) with no explanation available online - You need to make a payment in cash (TACs can process cash payments; most other channels can’t) - You have a complex situation involving multiple notices or years that’s hard to untangle by phone **Less useful reasons to go:** - Simple refund status questions you could check via “Where’s My Refund?” or your Online Account - General tax law questions better suited to a tax professional or the IRS’s own publications - Wanting a faster refund — TAC agents cannot expedite normal processing timelines ## What TAC Agents Cannot Do It’s worth setting expectations: TAC staff cannot make your refund arrive faster than normal processing allows, cannot override standard review holds without cause, and cannot provide tax advice or prepare your return for you. Their role is to help you understand your account status, resolve specific procedural issues, and point you toward the right next step — not to fast-track your case ahead of everyone else. Frequently Asked Questions QCan I walk into an IRS office without an appointment? ANo. All Taxpayer Assistance Centers require a scheduled appointment. Book via the IRS's office locator tool or by calling 844-545-5640. QWill an IRS agent know more than what I can see online? AUsually not for basic refund status - they generally see the same processing information available through 'Where's My Refund?' and your IRS Online Account. In-person visits are most valuable for complex issues like identity verification or unclear notices that online tools can't resolve. QWhat should I bring to a Taxpayer Assistance Center appointment? APhoto ID, your Social Security card or ITIN letter, a copy of the relevant tax return, any IRS notices you've received, supporting documents, and your appointment confirmation. QHow long does it take to get a TAC appointment? AIt varies by location and season - expect longer waits during peak filing season (late January through April) than during the rest of the year. Book as soon as you know you need one. QCan a TAC agent speed up my refund? ANo. TAC agents cannot expedite normal processing timelines. They can help clarify your status, resolve specific procedural holds, or explain a notice, but they can't skip you ahead in processing. **Categories:** Taxes and Retirement --- ### [Your Tax Refund Is a Free Loan to the IRS — Here's What It Actually Costs You](https://savingtoinvest.com/tax-refunds-are-they-worthwhile-or-a-free-loan-to-the-irs/) **Published:** December 26, 2016 **Author:** Angela Skellington-Bice **Content:** ### Key Takeaways - A tax refund means you overpaid your taxes throughout the year - the IRS held your money interest-free and simply returns the excess, it isn't a bonus or a gift. - With top high-yield savings accounts currently paying around 4-4.5% APY, a $2,000 refund represents roughly $80-90 in lost interest you could have earned by keeping that money in your own account throughout the year instead. - Adjusting your W-4 withholding gets that money into every paycheck instead of a once-a-year lump sum, which matters most if you'd actually use the extra cash productively rather than spend it. - There are legitimate reasons some people prefer a large refund anyway - forced savings discipline, avoiding an underpayment penalty, or simply valuing the psychological win of a lump sum. - The real risk of under-withholding is owing a balance (and potentially a penalty) at tax time - the goal isn't to owe money, it's to get as close to zero as comfortably possible. Getting a tax refund feels good — it’s easy to treat it like a bonus. But a refund is your own money, held by the IRS all year without paying you a cent of interest, then returned to you months later. Here’s what that actually costs at today’s rates, and how to think about whether adjusting your withholding makes sense for you. Covered in this Article: [Toggle](#) - [What a Refund Actually Represents](#What_a_Refund_Actually_Represents) - [What It Actually Costs You at Today’s Rates](#What_It_Actually_Costs_You_at_Todays_Rates) - [The Case for Adjusting Your Withholding](#The_Case_for_Adjusting_Your_Withholding) - [The Case for Keeping a Larger Refund Anyway](#The_Case_for_Keeping_a_Larger_Refund_Anyway) - [The Real Goal: Get Close to Zero, Not Negative](#The_Real_Goal_Get_Close_to_Zero_Not_Negative) ## What a Refund Actually Represents When you get a refund, it means your employer withheld more from your paychecks throughout the year than your actual tax liability turned out to be. The IRS doesn’t pay interest on this — it’s an interest-free loan from you to the federal government, repaid in a single lump sum after you file. This isn’t a moral failing or some kind of trap — it’s simply a math outcome of how your W-4 withholding was set relative to your actual tax situation. But it’s worth understanding the real cost, especially if you consistently get a large refund year after year. ## What It Actually Costs You at Today’s Rates Here’s the real math using current savings rates. As of mid-2026, top high-yield savings accounts pay roughly **4% to 4.5% APY** — a meaningful rate compared to the near-zero rates of a decade ago (see [current high-yield savings account rates](https://savingtoinvest.com/high-yield-savings/) for today’s best options). If you’re getting a **$2,000 refund**, that means roughly $167 a month was being over-withheld from your paycheck throughout the year. If instead you’d adjusted your withholding to keep that $167/month and deposited it into a high-yield savings account earning 4.3% APY, by year-end you’d have accumulated roughly **$80-90 in interest** you otherwise left on the table — not life-changing money, but not nothing either, and it compounds further if you keep saving rather than spending it. Scale that up: someone getting a **$6,000 refund** — not unusual for a family with several dependents and tax credits — is giving up something closer to **$240-270 in potential interest** for the year, money that would have simply sat in their own account earning a real return instead of sitting with the IRS earning nothing. ## The Case for Adjusting Your Withholding If you’d actually use the extra money productively — building an emergency fund, paying down high-interest debt, or investing — getting it spread across the year rather than in one April lump sum generally leaves you better off. Use the [IRS Tax Withholding Estimator](https://www.irs.gov/individuals/tax-withholding-estimator) with a recent pay stub and your prior year’s return handy, then submit an updated W-4 to your employer if adjustments are warranted. ## The Case for Keeping a Larger Refund Anyway There are legitimate reasons some people deliberately over-withhold, and it’s not irrational: **Forced savings discipline.** If you know you wouldn’t actually save the extra $167/month — it would just get absorbed into everyday spending — a refund functions as an effective, if inefficient, savings mechanism. The lost interest may be a worthwhile trade-off for actually having a lump sum at tax time. **Avoiding an underpayment penalty.** If your income is unpredictable (freelance income, bonuses, side income), erring toward slightly over-withholding reduces the risk of an underpayment penalty for not paying enough throughout the year — see [quarterly estimated taxes for freelancers](https://savingtoinvest.com/quarterly-estimated-taxes-this-year-what-freelancers-actually-need-to-know/) if this applies to you. **Simplicity.** Not everyone wants to actively manage withholding adjustments, and a predictable “set it and forget it” approach with a refund at the end has genuine value for some people’s financial habits. ## The Real Goal: Get Close to Zero, Not Negative The actual optimization target isn’t maximizing your refund or minimizing it to zero at all costs — it’s landing close to zero **without going negative**. Owing a balance at tax time isn’t inherently bad, but owing too much can trigger an underpayment penalty if you didn’t pay at least 90% of your current year’s tax liability (or 100-110% of last year’s, depending on your income) throughout the year via withholding or estimated payments. If you consistently get a large refund and would rather have that money throughout the year, adjusting your W-4 is a simple, reversible change — you can always adjust it again if your situation changes. Frequently Asked Questions QIs getting a tax refund bad? ANot inherently - it just means you're loaning the government money interest-free throughout the year. Whether that's worth adjusting depends on whether you'd actually put the extra paycheck money to better use, or whether you value the lump-sum discipline. QHow much does a typical refund actually cost me in lost interest? AAt today's roughly 4-4.5% high-yield savings rates, a $2,000 refund represents about $80-90 in interest you could have earned instead. Larger refunds scale proportionally - a $6,000 refund represents roughly $240-270 in lost potential interest. QHow do I adjust my withholding to reduce my refund? AUse the IRS Tax Withholding Estimator with a recent pay stub and your prior tax return, then submit an updated W-4 to your employer reflecting the recommended adjustments. QIs it better to owe money or get a refund? ANeither extreme is ideal. The goal is landing close to zero without going negative - owing too much can trigger an underpayment penalty, while a large refund means you gave up access to your own money all year for no return. QAre there good reasons to keep over-withholding on purpose? AYes - forced savings discipline if you wouldn't otherwise save the difference, reduced risk of an underpayment penalty if your income is unpredictable, and general simplicity are all legitimate reasons some people prefer a larger refund despite the lost interest. **Categories:** Finance and Investing 101, Taxes and Retirement --- ### [Is Your Adult Child's Health Coverage Really Tax-Free? Yes — Here's How It Works](https://savingtoinvest.com/tax-free-employer-health-insurance-for-adult-children/) **Published:** May 4, 2010 **Author:** Andy **Content:** ### Key Takeaways - Health coverage your employer provides for your children up to age 26 is tax-free to you, under a rule that's been settled federal law since 2010 (IRS Notice 2010-38, part of the Affordable Care Act). - This applies regardless of whether your adult child is a tax dependent, a student, married, or living on their own - the age-26 coverage mandate doesn't require dependent status. - The value of this coverage never counts as taxable income to you or your child, whether your employer covers the full cost or you pay part of the premium pre-tax through payroll deduction. - Plans aren't required to offer this coverage past age 26, and some employer plans set their own slightly different rules for adult children who have access to other employer coverage themselves. - This is separate from - and doesn't affect - other tax-advantaged health accounts like HSAs or FSAs, which have their own eligibility rules for covering adult children. If you’re covering an adult child on your employer health plan, you might assume there’s some tax catch — extra income to report, a benefit that phases out, something. There isn’t. This has been settled, stable federal law for well over a decade, and it’s worth understanding clearly since it’s easy to miss or second-guess. Covered in this Article: [Toggle](#) - [The Rule: Coverage Up to Age 26 Is Tax-Free](#The_Rule_Coverage_Up_to_Age_26_Is_Tax-Free) - [Who Qualifies as a “Child” for This Purpose](#Who_Qualifies_as_a_%E2%80%9CChild%E2%80%9D_for_This_Purpose) - [What This Actually Means for Your Paycheck](#What_This_Actually_Means_for_Your_Paycheck) - [What Happens at Age 26](#What_Happens_at_Age_26) - [This Doesn’t Affect HSA or FSA Eligibility Rules Separately](#This_Doesnt_Affect_HSA_or_FSA_Eligibility_Rules_Separately) ## The Rule: Coverage Up to Age 26 Is Tax-Free Under the Affordable Care Act, health plans that offer dependent coverage must make it available to a covered employee’s children until they turn 26 — and per IRS guidance (Notice 2010-38), the value of that coverage is **not taxable income** to the employee, regardless of the child’s age up to 26, and regardless of whether the child otherwise qualifies as your tax dependent. This eliminated a patchwork of rules that existed before 2010, when different employer plans covered dependents to wildly different ages (some cut off at 19, others extended coverage only for full-time students), and the tax treatment of that coverage wasn’t always clear. ## Who Qualifies as a “Child” for This Purpose The definition is broader than you might expect. It includes: - A biological son or daughter - A stepchild - An adopted child - An eligible foster child Notably, **your child does not need to qualify as your tax dependent** to get this tax-free treatment. A 24-year-old who lives independently, works full-time, and files their own tax return can still be added to your employer plan tax-free, as long as they’re under 26 — the Affordable Care Act’s coverage mandate and the IRS’s tax-free treatment both apply independent of dependent status. ## What This Actually Means for Your Paycheck If your employer offers pre-tax payroll deductions for health coverage (most do, through a Section 125 cafeteria plan), premiums for your adult child’s coverage come out of your paycheck before taxes are calculated — same as your own coverage. Neither you nor your child reports anything related to this coverage as income on your tax return. **Cost is a separate question from tax treatment.** Whether adding your adult child to your plan is expensive depends entirely on your employer’s specific pricing structure — some employers absorb the cost across the broader risk pool, others charge a separate, sometimes substantial, premium tier for covering adult children. The tax-free treatment doesn’t mean the coverage itself is free; it just means you won’t owe income tax on its value. ## What Happens at Age 26 Coverage under this rule isn’t required past the calendar year your child turns 26 — most plans end coverage on their birthday or at the end of that plan year, depending on how the specific employer plan is structured. At that point, your adult child typically has options through: - Their own employer’s health plan, if they’re working - A Marketplace plan (potentially with subsidies depending on their income) - COBRA continuation coverage from your plan for a limited period, though this is often the most expensive option - Medicaid, if their income qualifies Check your specific plan’s exact cutoff timing well before your child’s 26th birthday, since some plans end coverage immediately on the birthday rather than waiting for the end of the plan year. ## This Doesn’t Affect HSA or FSA Eligibility Rules Separately If you also use a Health Savings Account (HSA) or Flexible Spending Account (FSA), those have their own separate eligibility rules for which family members’ expenses you can pay for tax-free — and HSA rules in particular are stricter, generally requiring the child to be your tax dependent (not just under 26) for you to use HSA funds on their medical expenses. Don’t assume the age-26 insurance coverage rule and the HSA reimbursement rules line up perfectly — see [current HSA contribution limits and rules](https://savingtoinvest.com/hsa-limits-and-tax-rules-how-to-best-utilize-health-savings-accounts/) for the specifics on who counts as an eligible dependent for HSA purposes. Frequently Asked Questions QIs employer health coverage for my adult child taxable income to me? ANo. Under IRS Notice 2010-38, coverage for your children up to age 26 is tax-free to you, regardless of whether they qualify as your tax dependent. QDoes my child need to be my tax dependent to get tax-free coverage? ANo. The age-26 coverage mandate and its tax-free treatment apply regardless of dependent status - your adult child can be financially independent, filing their own return, and still be covered tax-free on your plan. QWhat happens to my child's coverage when they turn 26? ACoverage ends at 26, though the exact timing (birthday vs. end of plan year) varies by employer plan. After that, options include their own employer's plan, a Marketplace plan, COBRA, or Medicaid depending on income. QCan I use my HSA to pay for my adult child's medical expenses? AOnly if your child qualifies as your tax dependent under HSA-specific rules, which are stricter than the age-26 insurance coverage mandate. Being covered on your insurance plan doesn't automatically make them HSA-eligible. QIs this a new tax benefit for 2026? ANo - this has been established federal law since 2010 under the Affordable Care Act. It's not a recent change, though it's still commonly misunderstood or overlooked by families newly navigating adult-child coverage. **Categories:** Government Rebates and Payments --- ### [Child and Dependent Care Tax Credit Rises to $1,500-$3,000 in 2026 Under OBBBA](https://savingtoinvest.com/child-and-dependent-care-credit-updates-and-latest-limits/) **Published:** December 8, 2022 **Author:** Andy **Content:** ### Key Takeaways - The Child and Dependent Care Tax Credit (CDCTC) permanently rises in 2026 under the One Big Beautiful Bill Act (OBBBA) - the maximum credit percentage jumps from the old 20-35% range up to 50% of qualifying expenses for lower earners. - The maximum credit is now $1,500 for one qualifying dependent or $3,000 for two or more - up from $1,050/$2,100 in the 2022-2025 period. - The credit percentage phases down gradually with income: 50% up to $15,000 AGI, sliding to 35% between $43,001-$75,000, then down to a 20% floor above $103,000 ($206,000 joint). - This is a permanent change, not a temporary pandemic-style boost that will expire again - OBBBA locked in the higher percentage going forward. - The credit remains nonrefundable - it can only reduce your tax liability, not increase a refund beyond what you'd otherwise owe. If you’ve been claiming the Child and Dependent Care Tax Credit (CDCTC) at the reduced post-pandemic level for the past few years, there’s good news: it just went up again, and this time it’s meant to stay. Starting with the 2026 tax year, the One Big Beautiful Bill Act (OBBBA) permanently raises the credit percentage, pushing the maximum benefit meaningfully higher than what filers have claimed since 2022. Covered in this Article: [Toggle](#) - [What Changed for 2026](#What_Changed_for_2026) - [How the New Phase-Out Works](#How_the_New_Phase-Out_Works) - [What This Means in Practice](#What_This_Means_in_Practice) - [How to Claim It](#How_to_Claim_It) - [CDCTC vs. Other Family Credits](#CDCTC_vs_Other_Family_Credits) - [Looking Ahead: What to Watch](#Looking_Ahead_What_to_Watch) ## What Changed for 2026 PeriodMaximum Expense LimitCredit Percentage RangeMaximum Credit2021 (ARPA pandemic boost)$8,000 (1 dep) / $16,000 (2+ deps)50% down to 20%$4,000 (1 dep) / $8,000 (2+ deps)2022-2025$3,000 (1 dep) / $6,000 (2+ deps)20-35%$1,050 (1 dep) / $2,100 (2+ deps)2026 and beyond (OBBBA)$3,000 (1 dep) / $6,000 (2+ deps)20-50%$1,500 (1 dep) / $3,000 (2+ deps) The expense limits themselves didn’t change from the 2022-2025 level — you can still count up to $3,000 in care expenses for one qualifying dependent or $6,000 for two or more. What changed is the **percentage** of those expenses you can claim as a credit: the top rate jumped from 35% to 50%, permanently, starting in 2026. ## How the New Phase-Out Works The percentage of your qualifying expenses you can claim depends on your Adjusted Gross Income (AGI): - **$15,000 AGI or less:** 50% of qualifying expenses - **$15,001 to $43,000:** phases down gradually from 50% to 35% - **$43,001 to $75,000:** 35% - **$75,001 to $103,000 ($150,000-$206,000 joint):** phases down from 35% to 20% - **Above $103,000 ($206,000 joint):** 20% floor (this rate applies no matter how high your income goes) Even higher earners still get the 20% floor rate — unlike some credits that fully phase out, the CDCTC never disappears entirely regardless of income. ## What This Means in Practice **Example:** A married couple filing jointly earns $90,000 AGI and has two children in after-school care, spending $6,000 for the year (the maximum that counts toward the credit with 2+ dependents). At their income level, they fall in the phase-down range between $75,001 and $103,000 — let’s say their applicable rate works out to roughly 27%. Their credit would be approximately $6,000 × 27% = $1,620, compared to what would have been capped around $1,200-1,260 under the old 20-35% range at a similar income level. **Lower earners see the biggest jump.** A single parent earning $30,000 with one child in care, spending the full $3,000, would have gotten a maximum $1,050 credit (35%) under the old rules. Under the 2026 rules, at that income level they’re in the 50%-to-35% phase-down zone, potentially qualifying for something closer to $1,300-1,500 depending on exactly where their AGI lands in the range. ## How to Claim It You still need to complete **Form 2441** and attach it to your Form 1040 to claim the credit. The core eligibility rules haven’t changed: - You (and your spouse, if filing jointly) must have earned income from a job — investment income alone doesn’t qualify. - The care must be for a qualifying child under age 13, or a spouse/dependent who is physically or mentally unable to care for themselves and has lived in your home for at least half the year. - You can’t claim the credit for care provided by your spouse, your child’s other parent, or another of your own dependents. - If you use a Dependent Care FSA to pay for care expenses, you can’t double-dip and count that same money toward the CDCTC — see [current FSA dependent care contribution limits](https://savingtoinvest.com/flexible-and-dependent-care-spending-accounts-fsa-contribution-limits/) for how the two benefits interact and which is better for your situation. ## CDCTC vs. Other Family Credits The CDCTC is separate from — and can be claimed alongside — other family tax benefits: - **Child Tax Credit (CTC):** a per-child credit based on having a qualifying child, unrelated to care expenses. See [current CTC amounts and income thresholds](https://savingtoinvest.com/child-and-kiddie-tax-credit-and-income-thresholds/). - **Earned Income Tax Credit (EITC):** an income-based credit for working families, also independent of the CDCTC. See [current EITC qualification and income limits](https://savingtoinvest.com/earned-income-tax-credit-eitc-qualification-and-income-threshold-limits/). - **Dependent Care FSA:** an employer-sponsored pre-tax account, an alternative (not an addition) to the CDCTC for the same expenses. Qualifying for one of these doesn’t reduce your eligibility for the others — check all three if you have dependent care expenses and working income. ## Looking Ahead: What to Watch Because OBBBA made this a permanent change rather than a temporary pandemic-style boost, there’s no scheduled expiration to plan around this time — unlike the 2021 ARPA expansion, which was always going to revert. That said, tax law can always change with future legislation, so this page will be updated if Congress revisits the credit again. For the full picture of current-year deductions and credits, see the [2026-2027 IRS tax brackets and rates](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/). Frequently Asked Questions QWhat is the maximum Child and Dependent Care Tax Credit for 2026? A$1,500 for one qualifying dependent or $3,000 for two or more, based on a maximum 50% credit rate for lower-income filers, phasing down to a 20% floor for higher earners. This is up from $1,050/$2,100 under the 2022-2025 rules. QIs the higher 2026 CDCTC amount permanent or temporary? APermanent. Unlike the 2021 pandemic-era ARPA expansion (which was always scheduled to expire), OBBBA's increase to the credit percentage has no built-in sunset date. QIs the Child and Dependent Care Tax Credit refundable? ANo. It's nonrefundable, meaning it can only reduce your tax liability to zero - it can't increase your refund beyond what you'd otherwise be owed, unlike some other family credits. QCan I use a Dependent Care FSA and claim the CDCTC for the same expenses? ANo. You can't double-dip - money you set aside pre-tax in a Dependent Care FSA can't also be counted toward your CDCTC. You'd typically use the FSA for some expenses and the CDCTC for any qualifying expenses above your FSA contribution. QWho qualifies as a dependent for the CDCTC? AA qualifying child under age 13 whom you claim as a dependent, or a spouse or other dependent who is physically or mentally unable to care for themselves and has lived in your home for at least half the year. You and your spouse (if filing jointly) must both have earned income. **Categories:** Taxes and Retirement --- ### [Facing Higher Taxes? Four Strategies That Actually Move the Needle in 2026](https://savingtoinvest.com/strategies-for-dealing-with-higher-taxes/) **Published:** August 25, 2008 **Author:** Andy **Content:** ### Key Takeaways - A Roth conversion moves pre-tax retirement money into a Roth account, paying tax now at today's rate in exchange for tax-free growth and withdrawals later - most valuable when you expect to be in the same or a higher bracket in retirement. - Asset location (not to be confused with asset allocation) means placing tax-inefficient investments in tax-advantaged accounts and tax-efficient ones in taxable accounts - a free way to reduce your tax drag without changing your actual investment mix. - Tax-loss harvesting lets you sell underperforming investments to offset capital gains elsewhere in your portfolio, directly reducing your taxable income for the year. - Municipal bonds pay interest that's exempt from federal tax (and often state tax if you buy bonds from your own state) - most valuable for people in higher tax brackets. - None of these strategies require guessing about future tax law changes - they work under the current 2026-2027 tax brackets and remain useful regardless of what Congress does next. Tax bills go up for a lot of reasons — a raise, a bonus, selling an investment, or just bracket creep as your income grows. Whatever the cause, there are concrete, legal strategies that reduce what you actually owe, separate from whatever political debate is happening in Washington about future rates. Here are four that hold up regardless of which direction tax policy moves next. Covered in this Article: [Toggle](#) - [1. Roth Conversions](#1_Roth_Conversions) - [2. Tax-Efficient Asset Location](#2_Tax-Efficient_Asset_Location) - [3. Tax-Loss Harvesting](#3_Tax-Loss_Harvesting) - [4. Municipal Bonds](#4_Municipal_Bonds) - [What Doesn’t Actually Help](#What_Doesnt_Actually_Help) ## 1. Roth Conversions A Roth conversion means moving money from a pre-tax account (a Traditional IRA or 401(k)) into a Roth account. You pay ordinary income tax on the converted amount in the year you convert — but after that, the money grows tax-free and, assuming you meet the standard Roth rules, comes out tax-free in retirement too. **When this makes sense:** if you expect to be in the same or a higher tax bracket later — which is common for people early in their careers, or in a temporarily low-income year (between jobs, a sabbatical, early retirement before Social Security starts) — converting now locks in today’s lower rate instead of paying a potentially higher rate on withdrawals later. **When it doesn’t:** converting a large amount in a single year can push you into a higher bracket for that year alone, which can eat into or eliminate the benefit. Many people do partial conversions across several years — filling up their current bracket without spilling into the next one — rather than converting an entire account at once. **A related consideration:** Traditional accounts require minimum distributions starting at a set age (see [current retirement age and RMD rules](https://savingtoinvest.com/retirement-ages-and-eligilbility-rules-for-receiving-401k-ira-and-social-security-beneifts/)), while Roth IRAs have no RMDs during the original owner’s lifetime — which also makes a Roth a more flexible vehicle for leaving money to heirs. ## 2. Tax-Efficient Asset Location This is different from asset *allocation* (your stock/bond mix) — asset *location* is about which account type holds which investments, and it’s one of the few genuinely free ways to lower your tax bill without changing your actual portfolio. The general principle: put tax-inefficient investments (things that generate a lot of taxable income or short-term gains — actively managed funds, high-yield bond funds, REITs) inside tax-advantaged accounts like a 401(k), Traditional IRA, or Roth IRA, where that income isn’t taxed annually. Put tax-efficient investments (broad index funds, ETFs that rarely distribute capital gains, individual stocks you plan to hold long-term) in your taxable brokerage account, where they’ll generate minimal taxable events until you actually sell. Done well, this can meaningfully reduce your annual tax drag on the same underlying portfolio — you’re not taking more risk or changing your allocation, just being deliberate about where each piece sits. ## 3. Tax-Loss Harvesting If you have investments in a taxable account that are down from what you paid, selling them locks in a capital loss that can offset capital gains elsewhere in your portfolio — and if your losses exceed your gains, up to $3,000 of the excess can offset ordinary income each year, with any remainder carried forward to future years. The main pitfall to watch: the IRS’s wash-sale rule disallows the loss if you buy the same or a “substantially identical” security within 30 days before or after the sale. If you want to stay invested in the same general market segment, swap into a similar-but-not-identical fund (a different index provider tracking a comparable index, for example) rather than buying back the exact same security. Year-end is the traditional window for harvesting losses, but there’s no rule against doing it any time markets present an opportunity — see [15 year-end tax-saving moves](https://savingtoinvest.com/15-year-end-tax-deductions-to-remember-unless-you-want-to-give-the-irs-a-tax-free-loan/) for a broader checklist of timing-sensitive moves. ## 4. Municipal Bonds Interest from municipal bonds (“munis”) issued by state and local governments is generally exempt from federal income tax, and if you buy bonds issued by your own state, often exempt from state tax as well. This makes munis most valuable for people in higher tax brackets, where the tax-equivalent yield (what a taxable bond would need to pay to match a muni’s after-tax return) can make an otherwise modest-looking muni yield genuinely competitive. **One thing to watch:** private-activity municipal bonds (funding things like airports, private universities, or certain housing projects) can trigger the Alternative Minimum Tax for some filers — see [current AMT thresholds and exemptions](https://savingtoinvest.com/alternative-minimum-tax-amt-and-exemption-amounts/) if you’re considering muni bonds and want to check whether AMT exposure is a concern for your situation. ## What Doesn’t Actually Help A few common instincts don’t hold up under scrutiny: **Waiting to file until you can “figure out a strategy.”** File on time regardless — see [what happens if you can’t afford to pay your taxes](https://savingtoinvest.com/cant-afford-to-pay-my-taxes/) if a bigger-than-expected bill is the real issue. None of the strategies above require delaying your actual filing. **Trying to time tax law changes.** Tax policy shifts constantly, and betting your financial plan on a specific future law change (a bracket increase, a credit expiring) is speculative. The strategies above work under current law and remain useful regardless of what changes next. **Ignoring your withholding.** If higher taxes are catching you by surprise every year, the root cause might simply be under-withholding rather than needing exotic strategies — check your current bracket against [2026-2027 federal tax brackets](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/) and adjust your W-4 if you’re consistently owing more than expected. Frequently Asked Questions QWhat's the difference between a Roth conversion and a Roth contribution? AA contribution is new money you put directly into a Roth account, subject to annual contribution and income limits. A conversion moves existing pre-tax money from a Traditional account into a Roth, with no income limit on how much you can convert, but you owe ordinary income tax on the converted amount that year. QIs tax-loss harvesting worth doing for a small portfolio? AIt can still help - even modest losses reduce your taxable gains dollar-for-dollar, and up to $3,000 of excess losses offset ordinary income annually with the rest carried forward. The main requirement is a taxable (non-retirement) account, since losses in a 401(k) or IRA aren't harvestable. QAre municipal bonds worth it if I'm not in a high tax bracket? AUsually not as much. Munis typically pay lower yields than comparable taxable bonds, and the tax exemption's value scales with your tax bracket - they tend to make more sense for higher earners than for people in lower brackets who might do better with taxable bonds. QCan I do a Roth conversion every year? AYes, there's no limit on how often you can convert, and no income limit on conversions (unlike direct Roth contributions). Many people spread conversions across multiple years specifically to avoid pushing a single year's income into a higher bracket. QDo these strategies still work under current tax law? AYes, all four are based on standing IRS rules (Roth conversions, asset location, tax-loss harvesting, and muni bond tax treatment), not temporary provisions - they remain available regardless of near-term legislative changes. **Categories:** Saving and Investing ideas **Tags:** IRA, Roth IRA, taxes --- ### [How Long Should You Keep Tax Records? The IRS Rules by Document Type](https://savingtoinvest.com/how-long-to-keep-tax-records/) **Published:** June 20, 2010 **Author:** Andy **Content:** ### Key Takeaways - The general rule is 3 years from the date you filed - that's the IRS's standard 'period of limitations' for both amending your return and for the IRS to assess additional tax. - Keep records for 6 years if you underreported income by more than 25% of what's shown on your return, or omitted more than $5,000 in foreign financial assets. - Keep records for 7 years if you claimed a loss from worthless securities or a bad debt deduction. - Keep records indefinitely if you never filed a return, or filed a fraudulent one - there's no statute of limitations in either case. - Employers must keep employment tax records for at least 4 years after the tax is due or paid, whichever is later. The honest answer to “how long should I keep this?” depends entirely on what kind of record it is and what happened on your return. The IRS’s retention rules are tied directly to how long it (or you) can still legally act on a given tax year — called the period of limitations. Here’s the breakdown by situation, plus practical guidance on what to actually do with everything once you’re past the retention window. Covered in this Article: [Toggle](#) - [The Core Rule: 3 Years](#The_Core_Rule_3_Years) - [When You Need to Keep Records Longer](#When_You_Need_to_Keep_Records_Longer) - [What Counts as a “Record” Worth Keeping](#What_Counts_as_a_%E2%80%9CRecord%E2%80%9D_Worth_Keeping) - [What About Medical Bills and Bank Statements That Aren’t Tax-Related?](#What_About_Medical_Bills_and_Bank_Statements_That_Arent_Tax-Related) - [Practical Tips for Managing Records](#Practical_Tips_for_Managing_Records) ## The Core Rule: 3 Years For most taxpayers in most years, the standard retention period is **3 years from the date you filed your return** (or the due date, if later). This is the window during which: - You can file an amended return to claim an additional refund or credit you missed. - The IRS can audit your return and assess additional tax. If you filed your 2025 return in April 2026, the IRS generally has until April 2029 to question it, and you have until then to amend it if you find an error in your favor. Once that window closes, both sides are generally done with that tax year (with the exceptions below). ## When You Need to Keep Records Longer **6 years — substantial underreporting.** If you omitted more than 25% of the gross income shown on your return, the IRS gets double the normal window: 6 years instead of 3. This also applies if you failed to report more than $5,000 in specified foreign financial assets, even if that omission is under the 25% income threshold. **7 years — worthless securities or bad debt.** If you claimed a deduction for a loss from securities that became completely worthless, or a bad debt deduction (money someone owed you that you’re writing off), keep those records for 7 years from the due date of that return. **Indefinitely — no return filed, or fraud.** If you never filed a return for a given year, or if you filed a fraudulent return with intent to evade tax, there is **no statute of limitations** — the IRS can pursue those years at any point in the future. This is also a strong practical reason to always file, even a late return with money owed: it starts the clock running on a period of limitations that otherwise never begins. **4 years — employment tax records.** If you have employees (including household employees or a small business), keep employment tax records for at least 4 years after the tax becomes due or is paid, whichever is later. ## What Counts as a “Record” Worth Keeping The retention windows above apply broadly to anything that supports what’s on your tax return, which typically includes: - **Income documents:** W-2s, 1099s (NEC, INT, DIV, K, MISC, etc.), K-1s - **Deduction and credit support:** receipts for itemized deductions, charitable donation records, medical expense receipts, mortgage interest statements (Form 1098), childcare payment records - **Investment records:** brokerage statements, records of what you originally paid for an investment (your “cost basis”) — keep these for as long as you hold the investment, plus the standard retention period after you sell - **Home records:** purchase documents, records of home improvements, and sale documents — keep these for as long as you own the home, plus 3 years after you sell, since they affect your capital gains calculation (see [capital gains exclusions when selling your home](https://savingtoinvest.com/taxes-and-gains-i-can-exclude-when-selling-my-home/)) - **The tax return itself:** many people choose to keep copies of the actual filed return indefinitely, even after supporting documents are discarded, since it’s a compact record of what was reported ## What About Medical Bills and Bank Statements That Aren’t Tax-Related? The IRS retention rules only govern documents relevant to your taxes. For general financial recordkeeping (not audit-related), common practical guidance is: - **Bank and credit card statements:** most people keep 1 year for reference, longer only if they support a tax deduction or a major purchase warranty/dispute - **Pay stubs:** until you reconcile them against your W-2 and annual Social Security statement, then they can be discarded - **Medical bills:** 1 year for insurance dispute purposes, longer if you deducted medical expenses on your tax return (in which case the standard 3-7 year tax retention rules apply to those specific bills) - **Utility bills, ATM receipts, deposit slips:** generally safe to discard once reconciled against a monthly statement, unless tied to a tax deduction (like a home office utility deduction) ## Practical Tips for Managing Records **Digitize everything.** The IRS accepts scanned/digital copies of most records as long as they’re a legible, complete reproduction of the original. A cloud-stored folder organized by tax year eliminates the physical storage problem entirely. **Set a yearly purge date.** Pick a date each year (like Tax Day, or right after you file) to review and discard records that have passed their retention window. This keeps the task manageable instead of becoming a decade-deep paper archive. **Shred, don’t just toss.** Tax records contain Social Security numbers, account numbers, and other identity-theft-relevant information. Shred physical documents rather than throwing them in the regular trash. **When in doubt, keep it longer.** If you’re not sure which category a document falls into (for example, unclear whether a deduction might later be questioned), it costs little to keep it for the longer 7-year window rather than the standard 3. Frequently Asked Questions QHow long do I need to keep my tax returns? AThe IRS's standard period of limitations is 3 years from when you filed. Many people keep the actual return itself (not all supporting documents) indefinitely, since it's a compact summary if a question ever comes up later. QWhat if I never filed a tax return for a past year? AThere's no statute of limitations if a return was never filed - the IRS can pursue that year indefinitely. Filing now, even late, starts the standard limitations clock running for that year. QDo I need to keep records longer if I have investments? AYes. Keep records showing what you paid for an investment (cost basis) for as long as you own it, plus the standard 3-year (or longer, if applicable) retention period after you sell it, since you'll need that information to calculate your taxable gain or loss. QHow long should I keep home purchase and improvement records? AKeep them for as long as you own the home, plus at least 3 years after you sell, since these records affect your capital gains calculation when you sell. QCan I keep digital copies instead of paper? AYes. The IRS accepts scanned or digital copies as long as they're legible, complete reproductions of the originals - there's no requirement to keep physical paper. **Categories:** General Topics, Taxes and Retirement **Tags:** documents, records, retention, tax --- ### [The 21st Century ROAD to Housing Act Is Now Law — What It Means for Buyers and Investors in 2026 and 2027](https://savingtoinvest.com/housing-affordability-bill-what-the-21st-century-road-to-housing-act-means/) **Published:** June 23, 2026 **Author:** Andy **Content:** ### Key Takeaways - The 21st Century ROAD to Housing Act became law on July 11, 2026 - Trump never signed it, but he didn't veto it either, and it took effect automatically under the Constitution's 10-day rule. - The law bars institutional investors that already own 350+ single-family homes from buying more, raises FHA loan limits, expands HOME program eligibility, and funds local zoning reform incentives. - Trump's attempt to use his signature as leverage for the unrelated SAVE America Act didn't stop this bill from becoming law - Congress stayed in session through the 10-day window and the SAVE Act never passed the Senate. - Most of the law's requirements now fall to HUD and other agencies to implement through new regulations, studies, and reports - expect the practical effects to phase in over the coming months rather than all at once. - It doesn't include a homebuyer tax credit or cut buyers a check - see is there a first-time homebuyer tax credit in 2026? for what's actually available to buyers right now. Congress passed the most significant housing legislation in decades, and after a standoff at the president’s desk, it’s now the law of the land. The 21st Century ROAD to Housing Act became law on **July 11, 2026** — one day after the constitutional window for President Trump to act on it expired. He never signed it, and he never vetoed it either. Here’s what the legislation actually does, and how the standoff over his signature resolved. Covered in this Article: Covered in this Article: [Toggle](#) - [How the Bill Became Law Without Trump’s Signature](#How_the_Bill_Became_Law_Without_Trumps_Signature) - [Why This Bill Exists — The Problem It’s Trying to Solve](#Why_This_Bill_Exists_%E2%80%94_The_Problem_Its_Trying_to_Solve) - [What the Investor Ban Actually Does](#What_the_Investor_Ban_Actually_Does) - [The Supply Side: Building More Homes](#The_Supply_Side_Building_More_Homes) - [What Changes for Homebuyers](#What_Changes_for_Homebuyers) - [Real-World Examples](#Real-World_Examples) - [What the Bill Doesn’t Do](#What_the_Bill_Doesnt_Do) - [How Democrats and Republicans See This Bill](#How_Democrats_and_Republicans_See_This_Bill) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## How the Bill Became Law Without Trump’s Signature The bill was formally sent to President Trump’s desk on June 29, 2026, after clearing the Senate 85-5 and the House 358-32 in late June — a bipartisan landslide by today’s standards. Under Article I, Section 7 of the Constitution, a president has 10 days (excluding Sundays) to sign or veto a bill once it’s presented to him. That window closed on July 10, 2026. Trump had said he wouldn’t sign the housing bill until the Senate passed the SAVE America Act — a separate election bill adding proof-of-citizenship and stricter ID requirements for voter registration. The two bills were never substantively connected; Trump was using his signature on one as leverage for the other. That leverage play didn’t work: the SAVE America Act never came up for a Senate vote, and Trump neither signed nor vetoed the housing bill. Because Congress remained in session through the full 10-day window, the Constitution’s default rule kicked in: a bill the president doesn’t act on becomes law automatically, “in like Manner as if he had signed it.” That’s exactly what happened here, and the 21st Century ROAD to Housing Act became law on July 11, 2026 — one day after the window closed. The House Financial Services Committee, which shepherded the bill, confirmed the enactment the same day, with a long list of housing, banking, and industry groups (AARP, NAR, Zillow, the National Association of Home Builders, and dozens more) publicly voicing support. Now that it’s law, implementation shifts to the agencies — mostly HUD — which must stand up new programs, issue regulations, and report back to Congress. Expect the practical effects of most provisions to phase in over the coming months rather than take hold overnight. ## Why This Bill Exists — The Problem It’s Trying to Solve If you’ve been watching the housing market over the past decade, you already know the core issue: there aren’t enough homes, and the ones that do come to market often get bought by investors before individual buyers can compete. Between 2012 and 2023, institutional investors purchased hundreds of thousands of single-family homes — concentrating ownership in markets like Atlanta, Phoenix, Charlotte, and Tampa. For first-time buyers competing with cash offers from firms that can close in days with no contingencies, it’s been a deeply uneven playing field. The law takes direct aim at both problems: restricting who can buy, and creating incentives to build more. ## What the Investor Ban Actually Does The law bars any institutional investor that **already owns 350 or more single-family homes** from purchasing additional ones. The threshold matters — it’s not an outright ban on all investor activity, and it doesn’t require existing owners to sell off their current portfolios. What it does do: - **Stops further accumulation** by the largest players. If a firm already owns 50,000 homes, it can’t buy more single-family properties. - **Requires disposal under exemptions.** Certain purchases made under exceptions to the ban must be sold to individual homebuyers within 7 years. - **Gives tenants priority.** Renters in properties being sold get a right of first refusal and a mandatory 30-day “first look” window before the property can be listed to other buyers. The 350-home threshold means smaller “mom and pop” landlords and regional investors aren’t affected — this specifically targets the largest institutional operators. Economists are genuinely mixed on how much this moves the needle nationally, since these investors’ holdings are a small share of total housing stock even where their local concentration is significant. The supply-side provisions below may matter more long-term. ## The Supply Side: Building More Homes This gets less attention but may ultimately matter more for buyers. The law includes incentives for local governments that exceed the median rate of homebuilding in their region to receive additional Community Development Block Grant money — essentially paying cities and counties to loosen up and let more housing get built. It also funds converting abandoned infrastructure — empty offices, old factories, unused government facilities — into housing, creates a voluntary framework for communities that want to reform outdated single-family-only zoning, and expands federal financing for manufactured housing, still one of the most affordable options for first-time buyers. ## What Changes for Homebuyers **Higher FHA loan limits, automatically updated.** The law raises FHA mortgage limits and ties them to automatic annual adjustments, so buyers in high-cost markets won’t face the periodic cliff where limits lag behind actual prices. See [FHA vs. conventional loans](https://savingtoinvest.com/fha-vs-conventional-home-loan-comparing/) for how the current 2026 limits compare and which loan type might cost you less. **Expanded HOME Program eligibility.** The HOME Investment Partnerships Program, which funds affordable housing development, has its income eligibility raised to 100% of area median income — more buyers and renters will qualify for assistance funded through HOME. **More private financing for Section 8 housing.** The law raises the cap on public housing units that can receive private financing through Section 8, which should help rehabilitate aging affordable housing stock. **No tax credit for buyers.** This law is about supply and market structure, not a direct benefit at closing. If you’re looking for tax-side help as a first-time buyer, the IRA early-withdrawal exception and other current options are covered in [is there a first-time homebuyer tax credit in 2026?](https://savingtoinvest.com/homebuyer-tax-credit/) ## Real-World Examples **James, first-time buyer in Phoenix:** James and his wife have been trying to buy their first home in Phoenix for two years, losing multiple offers to investment firms making all-cash bids above asking. Now that the law is in effect, the largest institutional investors in that market — those owning 350+ homes — can’t add to their portfolios. James still competes with smaller investors, but the most well-capitalized buyers are no longer in the same pool. **Maria, renter getting first look:** Maria has rented her home for six years from a company that owns several thousand properties. Now that the law is in effect, if that company sells under one of the exemptions, Maria gets a right of first refusal and a 30-day first look window before the home can be sold to anyone else — time to secure financing and make an offer before it hits the open market. ## What the Bill Doesn’t Do It doesn’t immediately lower home prices. The housing affordability crisis took decades to build, and legislation won’t reverse that in months. The supply-side provisions will take years to show results as local governments respond to incentives, agencies write implementing regulations, and new construction gets underway. It doesn’t force existing investors to sell their current portfolios — the restrictions only apply to future purchases. And it doesn’t ban all investor activity; the 350-home threshold means most landlords, including large regional operators, aren’t covered. ## How Democrats and Republicans See This Bill The 85-5 Senate vote and 358-32 House vote are remarkable — almost nothing passes that cleanly in today’s Congress. But “bipartisan” doesn’t mean both parties agreed on everything. The final bill reflects a negotiated middle ground. **Where they agree:** Both parties acknowledged housing affordability has become a genuine crisis — home prices are up roughly 54% since 2020, and first-time homeownership has dropped significantly. There was also bipartisan consensus that large institutional investors concentrated in specific markets have distorted the playing field for individual buyers. **The Democratic view:** Democrats pushed hardest for the institutional investor ban and tenant protections, including the right-of-first-refusal provision. They’d originally wanted investors to sell off existing portfolios, not just stop buying — that didn’t make the final bill. Some progressives view the 350-home threshold as too high. **The Republican view:** Republicans were more enthusiastic about the supply-side provisions — zoning reform incentives, manufactured housing expansion, and removing regulatory barriers to construction. Several Republican senators were initially skeptical of the investor ban on free-market grounds, and some House Republicans argued that removing institutional capital could reduce overall rental supply. **The compromise:** The final bill leans on the investor ban enough to satisfy Democratic priorities on ownership equity while including enough deregulation to bring Republicans on board. Neither side got everything it wanted, which is usually what a real compromise looks like — which makes Trump’s unrelated hold-up over voting legislation even more of an outlier in how this bill ultimately became law anyway. ## Common Issues to Watch Out For **This is now law, but implementation is still rolling out.** HUD and other agencies have to write regulations, launch new programs, and report back to Congress on several provisions. Don’t expect every effect described here to be visible immediately — some of this will take months to show up in practice. **The investor ban threshold matters enormously.** Coverage only applies to investors owning 350+ homes. A firm with 349 properties isn’t covered, and in many local markets the most active buyers may fall below that threshold. Check what the actual market dynamics look like in your city. **Local zoning reform is voluntary.** The law provides incentives for communities to loosen zoning, but it can’t force them to. Cities and towns with strong NIMBY constituencies may decline the funding and keep restrictive zoning in place. **FHA limit increases don’t lower prices — they enable buyers to borrow more.** A higher FHA limit helps access in high-cost markets, but some economists argue that expanding financing access in a supply-constrained market can push prices higher by bringing more purchasing power into a fixed supply of homes. **This law doesn’t include a buyer tax credit.** It’s easy to conflate housing legislation with a tax credit given how often both get discussed together. This bill is entirely about supply and market structure — see [is there a first-time homebuyer tax credit in 2026?](https://savingtoinvest.com/homebuyer-tax-credit/) for the separate (and still unresolved) question of a federal buyer credit. For the bill’s official text and ongoing implementation status, [track it directly on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/6644) rather than relying on any single news report. Frequently Asked Questions QIs the 21st Century ROAD to Housing Act law? AYes. It became law on July 11, 2026, one day after President Trump's constitutional 10-day window to sign or veto it expired. He did neither, so under Article I, Section 7 of the Constitution, it became law automatically since Congress remained in session. QWhy didn't Trump sign the housing bill? AHe wanted to use his signature as leverage to pressure Congress into passing the unrelated SAVE America Act, a voter-ID bill. That strategy didn't work - the SAVE Act never got a Senate vote, and the housing bill became law anyway once the 10-day window ran out. QDoes the 21st Century ROAD to Housing Act ban investors from buying homes? ANo. It only bars institutional investors that already own 350 or more single-family homes from buying additional ones. Smaller landlords and regional operators aren't covered, and existing investors don't have to sell their current portfolios. QWhat does the law do for first-time homebuyers? AIt raises FHA loan limits with automatic annual adjustments, restricts the largest institutional investors from competing for the same homes, expands HOME program eligibility, and funds local zoning reform. It does not create a tax credit or send cash directly to buyers. QWhen will I actually see the effects of this law? AIt varies by provision. The investor purchase restriction applies now that the law is in effect. Other pieces - zoning incentives, expanded HOME eligibility, Section 8 financing changes - require HUD and other agencies to write regulations and stand up programs first, so expect a phase-in over the coming months rather than an immediate change. **Categories:** Taxes and Retirement --- ### [First-Time Homebuyer Tax Credit — Is There One in 2026?](https://savingtoinvest.com/homebuyer-tax-credit/) **Published:** September 2, 2009 **Author:** Andy **Content:** ### Key Takeaways - There is no active federal first-time homebuyer tax credit for 2026 - the '$15,000 credit' people search for was a Biden-era proposal that never passed Congress. - Several new homebuyer credit bills are pending in the current Congress (First-Time Homebuyer Tax Credit Act, Bipartisan American Homeownership Opportunity Act, MAHA Act) - none has passed as of this writing. - The 21st Century ROAD to Housing Act became law on July 11, 2026, after President Trump let it take effect without his signature. It doesn't cut buyers a check, but it restricts large institutional investors, raises FHA loan limits, and funds zoning reform. - First-time buyers can still withdraw up to $10,000 from an IRA penalty-free (though not tax-free from a Traditional IRA) under the IRS's existing first-time homebuyer exception - a real, current tax break that's easy to miss. - FHA loans, state down-payment assistance programs, and the mortgage interest deduction remain the practical tools available to buyers in 2026. **Short answer: there is no active federal first-time homebuyer tax credit for 2026.** If you’re searching for this because you’ve heard about a “$15,000 homebuyer credit,” you’re likely thinking of a proposal from the Biden administration’s housing agenda that was floated but never passed Congress. It’s not law today, though — as covered below — several similar bills are currently pending in Congress. ### The History: The Real Homebuyer Credit (2008–2010) The credit people are usually remembering is the actual first-time homebuyer credit passed during the 2008 financial crisis to help stabilize the collapsing housing market. Here’s a quick summary of how it worked: - **2008–2009:** First-time buyers (no ownership in the prior three years) could claim up to $8,000. This version of the credit had to be repaid over 15 years for purchases made in 2008 — it functioned more like an interest-free loan. - **Extended buyers:** A separate “long-time resident” credit of up to $6,500 was added for existing homeowners who had lived in their previous home for at least five consecutive years, if they bought a new one. - **Deadlines:** The credit went through several extensions — from its original November 2009 deadline, to April 30, 2010 for signing a contract, with a final closing deadline of September 30, 2010. - **Income limits:** Full credit was available up to $125,000 MAGI (single) / $225,000 (joint) for purchases after November 6, 2009; lower thresholds applied to earlier purchases. - **Fraud concerns:** The IRS later identified tens of thousands of improper claims, including thousands from taxpayers under 18 who weren’t eligible to buy homes at all — a reminder that any revived version of this credit would likely come with stricter verification requirements. The credit expired at the end of 2010 and has not been renewed at the federal level since. ### What’s Actually Pending in Congress Right Now The Biden-era $15,000 proposal never passed, but it’s not the only homebuyer credit idea in circulation. As of mid-2026, several bills are sitting in Congress — none enacted: - **First-Time Homebuyer Tax Credit Act (H.R. 4717 / S. 2402):** Would create a refundable credit equal to 10% of the home’s purchase price, capped at $15,000, for qualified first-time buyers. - **Bipartisan American Homeownership Opportunity Act (H.R. 3475):** Would let first-time buyers claim a credit equal to their down payment, up to $50,000, subject to income limits. - **Make American Housing Affordable (MAHA) Act:** Introduced January 2026, this would offer up to $5,000 (single filers) or $10,000 (joint filers) toward a primary residence purchase, phasing out above $250,000/$500,000 income, claimable once every five years. None of these have passed either chamber. If you see headlines or social posts claiming a homebuyer credit “just passed,” verify against [Congress.gov](https://www.congress.gov/) before assuming it applies to you — there have been several viral misinformation cycles about a homebuyer credit “returning” over the past few years. I’ll update this page the moment any of these actually becomes law. ### The 21st Century ROAD to Housing Act Is Now Law While there’s still no federal buyer tax credit, real housing legislation has moved: the **21st Century ROAD to Housing Act** became law on July 11, 2026. It passed the Senate 85-5 and the House 358-32 in June 2026 — a rare bipartisan landslide — and took effect after President Trump declined to sign it but also didn’t veto it. It doesn’t put cash in buyers’ pockets the way a tax credit would, but it does restrict large institutional investors (those already owning 350+ single-family homes) from buying more, raises FHA loan limits, and funds incentives for local governments to loosen restrictive zoning and build more housing. **→ Full details on what the bill does: [2026 Housing Affordability Bill: What the 21st Century ROAD to Housing Act Means](https://savingtoinvest.com/2026-housing-affordability-bill-what-the-21st-century-road-to-housing-act-means/)** ### What First-Time Buyers Can Actually Use in 2026 Absent a federal tax credit, a few real, currently-available tools are worth checking: - **The IRA first-time homebuyer exception.** This one gets overlooked. The IRS lets first-time buyers withdraw up to **$10,000 (lifetime limit)** from an IRA before age 59½ without the usual 10% early-withdrawal penalty. From a Traditional IRA the withdrawal is still taxed as ordinary income; from a Roth IRA it can be both tax- and penalty-free if the account has been open at least five years. It applies per spouse, so a couple can potentially pull $20,000 combined. See [how to withdraw money early from a 401k or IRA without a penalty](https://savingtoinvest.com/how-to-withdraw-money-early-from-your-401k-or-ira-without-paying-a-penalty/) and [Traditional vs. Roth IRA rules](https://savingtoinvest.com/traditional-ira-versus-roth-ira-contribution-and-phase-out-income-limits/) for the full mechanics. - **FHA loans**, which allow lower down payments (as little as 3.5%) than most conventional loans. See [FHA vs. Conventional Loans](https://savingtoinvest.com/fha-vs-conventional-home-loan-comparing/) for a full comparison of costs and qualification rules. - **State and local first-time buyer programs.** Many states run their own down-payment assistance or tax credit programs independent of federal action — check your state housing finance agency. - **Mortgage interest and property tax deductions**, if you itemize — see the [current federal tax brackets and standard deduction](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/) to check whether itemizing beats the standard deduction for your situation. - **The capital gains exclusion when you eventually sell.** Not a buyer-side benefit today, but worth knowing up front: married couples can exclude up to $500,000 ($250,000 single) in gain when they sell a primary residence they’ve owned and lived in for at least two of the last five years. See [capital gains and exclusions when selling your home](https://savingtoinvest.com/taxes-and-gains-i-can-exclude-when-selling-my-home/) for the details. - **A high-yield savings account for your down payment fund.** If you’re still saving, parking that money somewhere earning a real return beats a 0.01% checking account. See [current high-yield savings rates](https://savingtoinvest.com/high-yield-savings/). If your mortgage payment has changed since you bought, that’s usually escrow-related rather than anything to do with a credit — see [why your monthly mortgage payment went up](https://savingtoinvest.com/5-reasons-why-your-monthly-mortgage-payment-went-up/) for the common causes. *I’ll update this page immediately if a federal homebuyer credit is actually reintroduced and gains real momentum in Congress. [Subscribe here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get notified.* Frequently Asked Questions QIs there a first-time homebuyer tax credit in 2026? ANo. There is no active federal first-time homebuyer tax credit in 2026. The $8,000/$6,500 credit from 2008-2010 expired and hasn't been renewed. A Biden-era $15,000 proposal never passed Congress, and several current bills (First-Time Homebuyer Tax Credit Act, Bipartisan American Homeownership Opportunity Act, MAHA Act) remain pending as of mid-2026. QWhat was the original first-time homebuyer tax credit? APassed during the 2008 financial crisis, it let first-time buyers claim up to $8,000 (2008 purchases had to repay it over 15 years like a loan) or up to $6,500 for long-time homeowners buying a new primary residence. It required signing a contract by April 30, 2010 and closing by September 30, 2010, and phased out above $125,000 MAGI for single filers ($225,000 joint). QWhat is the 21st Century ROAD to Housing Act? AA bipartisan housing bill that became law on July 11, 2026, after passing the Senate 85-5 and House 358-32. It restricts large institutional investors from buying additional single-family homes, raises FHA loan limits, and funds zoning reform - but it does not create a buyer tax credit or send cash directly to homebuyers. QCan I use my IRA to help buy my first home without a penalty? AYes. The IRS allows a penalty-free withdrawal of up to $10,000 (lifetime limit, per spouse) from an IRA for a first-time home purchase. Traditional IRA withdrawals still owe ordinary income tax; Roth IRA withdrawals can be fully tax- and penalty-free if the account is at least five years old. QWill a new federal homebuyer credit pass in 2026? APossibly, but nothing is enacted as of this writing. Three separate bills are pending in Congress with different structures - a flat 10%-of-price credit capped at $15,000, a down-payment-matching credit up to $50,000, and an income-capped $5,000-$10,000 credit. Any of them could pass, stall, or get merged into other legislation. This page will be updated the moment one becomes law. **Categories:** Government Rebates and Payments, Real Estate and Mortgages **Tags:** credit, home, stimulus, tax --- ### [10 Fast and Easy Ways to Get, Save and Make Money Now](https://savingtoinvest.com/10-ways-to-quickly-improve-cash-flow-by/) **Published:** March 12, 2009 **Author:** Andy **Content:** Nowadays every extra dollar counts more than ever. Despite a paycheck from working a regular job, once taxes and other fixed expenses are accounted for, it is getting harder and harder to make ends meet. Since there are only twenty four hours in day, physically working more (provided you can even get a second or third job) is not really possible. That’s why you must become more adept at **saving smarter**, or even better make your cash work for you by finding ways to increase your **passive and investment income**. Here then are ten ways that I have used effectively to make some extra cash every month. Hopefully one or more of these ideas will work for you, and best of all you can start implementing them today! Covered in this Article: [Toggle](#) - [1. High interest savings accounts](#1_High_interest_savings_accounts) - [2. No annual fee credit card](#2_No_annual_fee_credit_card) - [3. Refinance Your Mortgage](#3_Refinance_Your_Mortgage) - [4. Start a blog](#4_Start_a_blog) - [5. Adjust your paycheck withholding](#5_Adjust_your_paycheck_withholding) - [6. Sell on Craigslist or Facebook/Meta Marketplace](#6_Sell_on_Craigslist_or_FacebookMeta_Marketplace) - [7. Cut your trading costs to $0](#7_Cut_your_trading_costs_to_0) - [8. Never buy retail and instead portal shop](#8_Never_buy_retail_and_instead_portal_shop) - [9. Reduce 401k contributions (carefully)](#9_Reduce_401k_contributions_carefully) - [10. Cut down on your auto insurance](#10_Cut_down_on_your_auto_insurance) ### 1. High interest savings accounts This is a no brainier way to make your money work for you. The difference between a [high yield savings account](https://savingtoinvest.com/high-yield-savings) and a regular checking account is the “higher” interest (APY) you get, 4 to 5 times in many cases. For example at current account rates, on $20,000 you can earn well over $500 of interest over the year, versus a miserly $10 to $40 for the entire year with a regular checking account. Further, with volatile stock markets, having your money in cash that you can quickly get to is a huge asset. Whichever [high yield savings account](https://savingtoinvest.com/high-yield-savings) you choose, make sure you go for one that has no fees, above average rates and is FDIC insured. ### 2. No annual fee credit card This is my pet peeve – paying an annual fee for a credit card. This is on top of any interest you pay for carrying a balance. Ideally you should pay off your credit card every month, but a number of families have to carry balances to make ends meet. However one thing you can **do right now** is get a no fee credit card, saving between $50 to $400 every year depending on your card. There are a number of cards you can get that have no annual fee and also very competitive interest rates. Many credit card sites can help you search across multiple offerings/vendors and provide you with cards that meet your criteria (like no annual fee or cash back rewards). ### 3. Refinance Your Mortgage If you have a home loan and have been a “responsible” owner, yet find it hard to [refinance to a lower rate](https://savingtoinvest.com/mortgage) because of falling housing values or less than perfect credit, government refinance programs may still be able to help. If you have a conforming loan backed by Freddie Mac or Fannie Mae (ask your lender if you are not sure) you can refinance to the lowest rates available in the market. Even shaving a percentage point or two off your rate on a $200,000 mortgage can meaningfully reduce your monthly payment. ### 4. Start a blog Do you know how much I make from running this blog? To answer that, I started this blog from scratch and it cost me about $20 to purchase the domain name and some basic hosting. I wouldn’t call this entirely passive income, because it takes a lot of work to develop an even moderately successful blog. However once you write an article and market it correctly, you can keep making money from the ads in and around it for as long as it is relevant and comes up in search engine results. I have detailed the required [characteristics for successful blogging](https://savingtoinvest.com/characteristics-required-for-succesful), but the key attributes are – decent writing skills, basic technical skills and a lot of patience. There is no harm giving it a try, because at most it will cost you a little time and a small hosting fee, and you’ll learn a lot along the way. ### 5. Adjust your paycheck withholding If you consistently get a large tax refund every spring, you’re effectively giving the IRS an interest-free loan all year. [Adjusting your paycheck withholding](https://savingtoinvest.com/change-your-paycheck-tax-withholding-after-these-personal-and-financial-life-events) so more of your money shows up in each paycheck — rather than as one lump sum the following year — can meaningfully improve your monthly cash flow. This is especially worth revisiting after any major life change – kids, a new job, a big change in income, or new deductions and credits you now qualify for. ### 6. Sell on Craigslist or Facebook/Meta Marketplace I was never a big believer of Craigslist or Facebook Marketplace despite what people said. I thought most people would use it to sell junk, mainly because it was cheaper than eBay. I also assumed that since it was local to the state or country you lived in, the number of buyers and sellers would be small. Boy was I wrong. I recently sold a crib (in good condition) for $150, which I had bought three years for about $180. So after three years and using the crib daily for my infant son, I only lost about $30. Not bad I think. What’s more I had about 10 people interested in it, among over 100 ads for other cribs. I got a fair price for it – in cash, so I was happy. I have since used it to sell over **$1000 worth of “stuff”** that I no longer needed. As the saying goes, one man’s junk is another man’s treasure. So do a home inventory of “stuff” you are not using, and sell it for free on online marketplaces. The extra cash is definitely something you can use. Just make sure you post good pictures of the things you list! ### 7. Cut your trading costs to $0 Many **new investors** are entering the market thanks to $0-commission trading becoming standard across most major brokers. My post on [how to buy stocks](https://savingtoinvest.com/how-to-buy-shares-two-simple-steps) is one of my most popular, and many folks who have been sitting on the sidelines are now willing to put some money into the market. Whatever your rationale, experience and investing focus, the **one thing you can control is how much you pay for trading**. Stick with a broker that charges $0 commissions on stock and ETF trades. ### 8. Never buy retail and instead portal shop Two reasons for this. Firstly, it reduces impulse buying. Secondly you are almost guaranteed to find a cheaper price if you shop online. However, like me, most people don’t have time to spend hours trolling the internet looking for a good deal. That’s where shopping portals or aggregation sites come in useful. They bring together the best prices from various small and well known merchants and you can see the lowest prices in one view. When I see something I like, I buy it from one of the well known merchants that come up in searches or use it to get the nearest retail store to match price – they all will in the current environment. ### 9. Reduce 401k contributions (carefully) I am not suggesting you stop 401K contributions permanently, but if cash flow is genuinely tight, dialing contributions back to just enough to get the full company match (rather than $0) and directing the rest toward higher-interest debt or an emergency fund can be the smarter short-term move. Once your emergency fund is solid and high-interest debt is gone, ratchet those 401K contributions back up to enjoy the benefits of dollar cost averaging and compounding. ### 10. Cut down on your auto insurance Don’t believe all those ads you see that any particular insurance company is the cheapest option. You must **always shop around** with financial and insurance companies because every policy is negotiable and subject to personal factors. For example I switched my auto insurance recently and saved over $200 by just saying, “*My current insurer gave me $X rate, so what can you do for me to keep me as a customer?*“ [Shopping for insurance](https://savingtoinvest.com/cheaper-auto-insurance) is boring and it is easy to keep going with the automatic renewals, but you can easily **save $100 to $500** on your insurance policies by making a few calls to get the best price. Whew! What a list. All told if you implement even half of the above ideas I bet you could increase your available cash by 5-20% a month and even build a passive income source or two. Good luck saving and investing your money. **Related reading:** - [Best High-Yield Savings Account Rates](https://savingtoinvest.com/high-yield-savings/) - [2026–2027 401(k), 403(b) and TSP Contribution Limits](https://savingtoinvest.com/taking-advantage-of-new-401k/) - [Finding Cheaper Auto Insurance](https://savingtoinvest.com/cheaper-auto-insurance/) *[Subscribe here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get the latest money-saving articles delivered to your inbox.* **Categories:** Saving and Investing ideas **Tags:** cash, credit, investing, money, passive, quick, saving --- ### [How to Reduce Your Tax Bill in 2026: Lowering Taxable Income and Claiming More Deductions](https://savingtoinvest.com/how-to-reduce-your-tax-bill-by-lowering/) **Published:** November 10, 2022 **Author:** Andy **Content:** ### Key Takeaways - The 2026 401(k) limit is $24,500 ($8,000 catch-up at 50+, $11,250 'super' catch-up at ages 60-63); the IRA limit is $7,500 ($1,100 catch-up). - RMDs now start at 73 (born 1951-1959) or 75 (born 1960 or later) under SECURE 2.0 - not the old 70½ rule. QCDs are still available starting at 70½, up to $111,000 per person in 2026. - A permanent new non-itemizer charitable deduction returns in 2026: $1,000 single / $2,000 married filing jointly for cash gifts, even without itemizing. - Itemizers face a new 0.5% of AGI floor on charitable deductions starting in 2026 - only giving above that threshold counts. - The 2026 gift tax annual exclusion is $19,000 per recipient ($38,000 for married couples splitting gifts). - Capital losses still offset up to $3,000 of ordinary income per year ($1,500 married filing separately), with unused losses carried forward indefinitely. A few years back I ended up owing taxes when I filed my return — a tax liability I could have avoided or shrunk if I’d made a few moves earlier in the year. That’s still the core lesson here: most of the strategies below only work if you act before December 31, not after. Avoiding a tax liability (line 37 on Form 1040) also keeps you clear of the underpayment penalty on line 38 — what I think of as a tax on your taxes. The moves below are simple, mostly good financial habits on their own, and things you can put in place today. Covered in this Article: [Toggle](#) - [401(k)/IRA Contribution Boost](#401kIRA_Contribution_Boost) - [Itemize to Claim More Deductions](#Itemize_to_Claim_More_Deductions) - [Decrease Your Paycheck Withholding — Carefully](#Decrease_Your_Paycheck_Withholding_%E2%80%94_Carefully) - [Required Minimum Distributions and Qualified Charitable Distributions](#Required_Minimum_Distributions_and_Qualified_Charitable_Distributions) - [Capital Gain Loss Tax Deduction](#Capital_Gain_Loss_Tax_Deduction) - [Charitable Giving Got More Complicated Under the OBBB — In a Good Way for Some Filers](#Charitable_Giving_Got_More_Complicated_Under_the_OBBB_%E2%80%94_In_a_Good_Way_for_Some_Filers) - [Gift Tax Exclusion](#Gift_Tax_Exclusion) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) ### 401(k)/IRA Contribution Boost This is usually the easiest, most effective lever: every dollar you put into a traditional 401(k) or IRA lowers your taxable income (AGI) for the year, and the growth inside the account isn’t taxed until withdrawal. For 2026, the 401(k) employee deferral limit is **$24,500**, up from $23,500 in 2025. The regular catch-up contribution for those 50 and up is **$8,000**, and if you’re age 60 to 63 specifically, [SECURE 2.0](https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-catch-up-contributions) gives you a bigger “super” catch-up of **$11,250** instead. See the full [401(k), 403(b) & TSP contribution limit rules](https://savingtoinvest.com/taking-advantage-of-new-401k/) for more on how these limits work across employer plans. IRA contribution limits are rising too — **$7,500** for 2026 (up from $7,000), plus a **$1,100** catch-up if you’re 50 or older. Account2026 Base LimitCatch-Up (50+)Catch-Up (Age 60–63)401(k) / 403(b)$24,500$8,000$11,250Traditional/Roth IRA$7,500$1,100— **Example:** Mark, 61, has been contributing the standard amount to his 401(k) all year. Because he’s in the 60–63 window, he can add the $11,250 super catch-up on top of the $24,500 base — $35,750 total — cutting his taxable income by that same amount if it all goes in pre-tax. One wrinkle worth knowing about: starting in 2026, if you earned more than $150,000 in wages from your employer last year, any catch-up contributions you make must go into the Roth (after-tax) side of the plan rather than pre-tax — so higher earners won’t get the immediate tax-bill reduction from catch-up dollars specifically, even though the retirement savings benefit remains. ### Itemize to Claim More Deductions Rather than automatically taking the [standard deduction](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/), run the numbers on itemizing if you have a mortgage, high medical expenses, or significant charitable giving. For 2026, the standard deduction is $16,100 (single/MFS), $24,150 (head of household), and $32,200 (married filing jointly) — high enough that itemizing only pays off if your deductions clear that bar by a meaningful margin. Most [leading tax software](https://savingtoinvest.com/turbotax-review-great-tax-filing-software-with-live-support-for-a-premium-price/) will run both calculations automatically and default you to whichever gives the bigger refund. ### Decrease Your Paycheck Withholding — Carefully A life event — buying or selling a house, a new job, a kid heading to college — is the most common trigger for withholding that no longer matches your actual tax situation. Use the IRS withholding estimator or last year’s return to check that [the right amount is coming out of each paycheck](https://savingtoinvest.com/taxes-and-my-paycheck/). The goal isn’t zero refund at all costs — it’s matching withholding to what you’ll actually owe, so you’re not handing the IRS an [interest-free loan](https://savingtoinvest.com/tax-refund-vs-stimulus-check-which-one-is-being-paid-faster-or-delayed-longer-by-the-irs/) all year or facing a surprise bill in April. ### Required Minimum Distributions and Qualified Charitable Distributions If you’re taking RMDs, get the age right — this trips people up constantly. Under SECURE 2.0, if you were born between 1951 and 1959, your RMDs start at age 73. If you were born in 1960 or later, that starting age moves to 75. Missing your first RMD, or taking it late, can trigger a real penalty, so [check the current rules](https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-required-minimum-distributions-rmds) against your own birth year rather than assuming “70½” like the old rule. If you’re 70½ or older (note: the age to *start* making QCDs is still 70½, even though RMDs themselves now start later), a Qualified Charitable Distribution lets you send money directly from your IRA to a charity and have it count toward your RMD without it ever showing up as taxable income. The 2026 QCD limit is **$111,000** per person ($222,000 for a married couple who both qualify) — up from $108,000 in 2025. You can’t double-dip: a QCD isn’t also deductible as a charitable contribution on Schedule A. ### Capital Gain Loss Tax Deduction If part of your portfolio is underwater, selling those positions can offset gains elsewhere and, beyond that, offset up to **$3,000** of ordinary income ($1,500 if married filing separately) — with any unused loss carried forward to future years indefinitely. Check your brokerage’s realized/unrealized gains report before December 31 to see what’s worth harvesting. See the full [capital gains rate and NIIT breakdown](https://savingtoinvest.com/capital-gains-tax-short-and-long-term-rates-plus-other-factors-to-consider/) for how short- versus long-term treatment affects the math. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get notified as these figures update each year.* ### Charitable Giving Got More Complicated Under the OBBB — In a Good Way for Some Filers This is the section that changed the most since I last touched this post. The old $300/$600 non-itemizer charitable deduction from the COVID stimulus era expired years ago — but starting with the **2026 tax year**, a new permanent version is back under the One Big Beautiful Bill (OBBB): a **$1,000 (single) / $2,000 (married filing jointly)** deduction for cash gifts to qualified charities, available even if you take the standard deduction. It’s a fixed dollar amount, not indexed to inflation. If you itemize instead, there’s a new catch for 2026: a **0.5% of AGI floor** on charitable deductions. Only the portion of your giving that exceeds 0.5% of your AGI is deductible. **Example:** Sarah has an AGI of $200,000 and donates $3,000 to her church this year. Her floor is $1,000 (0.5% of $200,000), so only $2,000 of that gift is actually deductible if she itemizes — but if she instead takes the standard deduction, she can claim the flat $1,000 non-itemizer deduction regardless. Remember that any charitable donation, regardless of amount, needs a bank record or written acknowledgment from the charity showing its name, the date, and the amount to survive an audit. ### Gift Tax Exclusion If you’re planning year-end gifts to family, the annual federal gift tax exclusion for 2026 is **$19,000** per recipient ($38,000 for a married couple splitting gifts) — unchanged from 2025, after climbing from $18,000 in 2024. Give more than that to any one person and you’ll likely need to file Form 709, even though no actual gift tax is due until you exceed your much larger lifetime exemption (currently $15 million). ### Common Issues to Watch Out For I get questions about this cluster of moves every year, so a few things worth flagging directly: - **Confusing the RMD start age with the QCD start age.** They’re not the same anymore. RMDs start at 73 or 75 depending on your birth year; QCDs are available starting at 70½. - **Assuming the standard/itemize choice from a few years ago still applies.** With the standard deduction climbing every year, a lot of former itemizers no longer clear the bar — rerun the math instead of defaulting to habit. - **Missing the new non-itemizer charitable deduction because it “sounds like” the expired COVID one.** This one’s permanent and separate — don’t assume it’s gone just because the 2021 version was temporary. - **Not accounting for the 0.5% AGI floor when planning a big itemized charitable gift.** High earners making large gifts should run the floor math first so they’re not surprised by a smaller-than-expected deduction. - **Waiting until December to act.** Almost everything on this list — retirement contributions, tax-loss harvesting, charitable gifts — is far easier to execute with a few months of runway than in the last week of the year. ## Looking Ahead: 2027 Outlook Contribution limits, the standard deduction, and the gift tax exclusion all adjust for inflation each year, typically announced by the IRS in the October–November window before the tax year begins. Based on recent inflation trends, I’d expect modest increases across the board for 2027 — a few hundred dollars on 401(k)/IRA limits, and a similar incremental bump to the standard deduction — rather than another structural change like the OBBB charitable rules. I’ll update this page once the IRS makes the 2027 figures official later this year. Frequently Asked Questions QWhat is the 2026 401(k) contribution limit? AThe 2026 401(k) employee deferral limit is $24,500. Those 50 and older can add an $8,000 catch-up, and those specifically age 60 to 63 get a larger $11,250 catch-up under SECURE 2.0. QAt what age do I have to start taking RMDs in 2026? AIt depends on your birth year. If you were born between 1951 and 1959, RMDs start at age 73. If you were born in 1960 or later, RMDs start at age 75. QCan I still do a Qualified Charitable Distribution if RMDs start later now? AYes. The QCD eligibility age is still 70½, separate from the RMD start age. The 2026 QCD limit is $111,000 per person ($222,000 for a married couple who both qualify). QIs the $300/$600 charitable deduction for non-itemizers back? ANot that exact one - but a new, permanent version starts with the 2026 tax year: $1,000 for single filers and $2,000 for married filing jointly, for cash gifts, without needing to itemize. QWhat is the 0.5% AGI floor on charitable deductions? AStarting in 2026, itemizers can only deduct the portion of their charitable giving that exceeds 0.5% of their adjusted gross income. Gifts below that floor aren't deductible. QHow much can I gift tax-free in 2026? AThe annual gift tax exclusion is $19,000 per recipient in 2026 ($38,000 for a married couple splitting gifts). Amounts above that generally require filing Form 709, though gift tax itself is only owed after exhausting your lifetime exemption. **Categories:** Taxes and Retirement **Tags:** 401K, Deductions, income, IRA, Lower Bills, tax --- ### [US Taxes on Foreign Income in 2026: Filing Requirements, Exclusions, and Deadlines](https://savingtoinvest.com/us-taxes-on-foreign-income-filing-requirements-exclusions-and-deadlines/) **Published:** March 20, 2012 **Author:** Andy **Content:** ### Key Takeaways - US citizens and resident aliens must report worldwide income regardless of where they live; living abroad only extends your filing deadline (to June 15, 2026), it doesn't remove the filing requirement. - FBAR is now filed exclusively online as FinCEN Form 114 through the BSA E-Filing System - the old paper 'TD F 90-22.1' form no longer exists. - FBAR is required once your combined foreign account balances exceed $10,000 at any point in the year; deadline is April 15, 2026, with an automatic extension to October 15, 2026. - The 2026 Foreign Earned Income Exclusion is $132,900 per person, with a separate $39,870 housing exclusion cap. - Form 8938 (FATCA) has its own, higher thresholds than FBAR and is filed with your tax return, not separately - you may owe both in the same year. - The Foreign Tax Credit (Form 1116) can cover income the FEIE doesn't reach, such as foreign investment income or wages above the exclusion cap. Living abroad doesn’t get you out of filing a US tax return. As a US citizen or resident alien, you’re required to report your **worldwide income** every year, no matter where you earned it or whether you already paid tax on it somewhere else. The good news is the IRS gives you real tools — the Foreign Earned Income Exclusion, the Foreign Tax Credit, and a longer deadline if you live overseas — to avoid getting taxed twice on the same dollar. Here’s what actually applies for the 2025 tax year (filed in 2026). ### Reporting Your Worldwide Income Every dollar you earn abroad — wages, self-employment income, rental income, foreign bank interest and dividends — goes on your US return the same as it would if you’d earned it domestically. This is true even if you also pay income tax to the country you’re living in. Your standard [filing deadline](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) is April 15, 2026. If you’re living outside the US on that date, you automatically get an extra two months — no form required — pushing your deadline to **June 15, 2026**. You can request a further extension to October 15 if you need it, same as domestic filers. ### Forms You May Actually Need - **Form 2555** — This is the form that actually claims the Foreign Earned Income Exclusion and the housing exclusion/deduction, not just a reporting form. - **Schedule B** — Required once your foreign (or domestic) interest and dividend income crosses relatively low thresholds, or if you have signature authority over a foreign account. - **Form 8938 (FATCA)** — Discloses specified foreign financial assets once you cross the reporting threshold for your filing status and residency (see table below). - **FinCEN Form 114 (FBAR)** — Reports foreign bank and financial accounts. This is filed separately from your tax return, directly with the Treasury’s Financial Crimes Enforcement Network — not attached to your 1040. One correction worth making here: the old paper form for this last one, “TD F 90-22.1,” hasn’t existed in years. FBAR is now filed exclusively online through FinCEN’s BSA E-Filing System as **FinCEN Form 114** — there’s no paper option anymore. ### Do You Need to File an FBAR? If the combined value of your foreign financial accounts — checking, savings, and certain foreign investment or pension accounts — exceeded **$10,000** at any point during the year, you must file an FBAR. That threshold hasn’t moved in years and isn’t indexed for inflation, so it catches far more people than it sounds like it should. The FBAR deadline lines up with your tax return: **April 15, 2026**, with an automatic extension to **October 15, 2026** if you miss it — you don’t need to file anything to get that extension, it’s automatic. **Example:** James is a US citizen working as a contractor in Portugal. He has a Portuguese checking account with $6,000 in it and a savings account with $5,000. Individually neither account looks alarming, but combined they total $11,000 — over the $10,000 threshold — so he must file an FBAR even though no single account exceeds the limit. ### Form 8938: Do You Cross the FATCA Threshold? Form 8938 has a similar purpose to the FBAR but different thresholds, a different filing location (it’s attached to your actual tax return, not filed separately), and it covers a broader range of assets, including foreign stock and certain foreign trust interests. Filing statusLiving in the USLiving abroadSingle / Married filing separatelyOver $50,000 (year-end) or $75,000 (any time)Over $200,000 (year-end) or $300,000 (any time)Married filing jointlyOver $100,000 (year-end) or $150,000 (any time)Over $400,000 (year-end) or $600,000 (any time) You may need to file both an FBAR and Form 8938 in the same year — they’re not a substitute for each other, since they go to different agencies and cover overlapping but distinct thresholds. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) for updates as these thresholds and exclusion amounts change each year.* ### Foreign Earned Income Exclusion (FEIE) If you qualify under either the bona fide residence test or the physical presence test, you can exclude up to **$132,900** of foreign earned income from US tax for the 2026 tax year (**$130,000** for 2025). There’s also a separate housing exclusion/deduction, capped at **$39,870** for 2026. Married couples who both work abroad and both qualify can each claim their own exclusion — potentially excluding well over $260,000 combined between them. **Example:** Lisa teaches English in South Korea and earns $95,000 a year. Because her entire salary is under the FEIE limit and she meets the physical presence test (330 full days abroad in a 12-month period), she can exclude all of it from US income tax — though she still needs to file the return and the FEIE forms to claim it; it isn’t automatic. The FEIE only excludes *earned* income — wages and self-employment income. It does nothing for foreign bank interest, dividends, capital gains, or rental income, which is where the Foreign Tax Credit comes in instead. ### Foreign Tax Credit or Deduction If you paid income tax to a foreign government on income that isn’t covered (or fully covered) by the FEIE, you can generally claim a dollar-for-dollar Foreign Tax Credit against your US tax on that same income, using Form 1116. This is often the better option for higher earners whose income exceeds the FEIE limit, since the credit isn’t capped the same way the exclusion is. You can’t double-dip the same income with both the FEIE and the Foreign Tax Credit — but you can use the FEIE for wages under the cap and the credit for anything above it or for non-wage income. Note that the FEIE doesn’t touch your [tax bracket](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/) directly — excluded income is still used to figure the rate that applies to whatever income remains taxable, a quirk called the “stacking rule.” If your foreign income includes investment gains — say, from a brokerage account you kept open abroad — those follow the same [capital gains rates](https://savingtoinvest.com/capital-gains-tax-short-and-long-term-rates-plus-other-factors-to-consider/) as domestic investments; the FEIE doesn’t apply to them at all. ### Free Filing and Getting Help If your adjusted gross income falls under the [current IRS Free File threshold](https://savingtoinvest.com/turbotax-review-great-tax-filing-software-with-live-support-for-a-premium-price/), you may still qualify for free e-filing software — though most consumer tax software handles the FEIE and foreign tax credit forms poorly or not at all, so expat-specific preparers or specialized software are worth considering once your situation gets complicated. The IRS maintains staff at select US embassies and consulates to help with international filing questions, and its [international taxpayer FAQ](https://www.irs.gov/individuals/international-taxpayers/frequently-asked-questions-about-international-individual-tax-matters) covers most common scenarios. For returns with more than roughly $10,000 in foreign income, or anything involving foreign trusts, foreign corporations, or PFICs (foreign mutual funds), an accountant who specializes in expat returns is usually worth the fee. ### Common Issues to Watch Out For - **Assuming FBAR and Form 8938 are the same filing.** They’re not — different agencies, different thresholds, and you may owe both in the same year. - **Thinking the FEIE means you don’t need to file at all.** You still have to file a return and affirmatively claim the exclusion on Form 2555; it’s not automatic just because your income qualifies. - **Missing the FBAR entirely because no single account looks large.** The $10,000 threshold is based on the combined total of all your foreign accounts, not any one account. - **Using consumer tax software not built for expat returns.** Many popular platforms don’t support Form 1116 or Form 2555 well, leading to errors or missed exclusions. - **Forgetting state tax obligations.** Moving abroad doesn’t automatically end your state tax residency — some states are notoriously difficult to formally exit (California and Virginia among them). ## Looking Ahead: 2027 Outlook The FEIE and housing exclusion amounts adjust for inflation every year, so expect another modest increase for 2027 when the IRS publishes its inflation adjustments later this year. The FBAR’s $10,000 threshold and the Form 8938 thresholds have stayed fixed for years with no indexing, and I’m not aware of any pending legislation to change that — worth watching if you’re close to those lines, since they don’t move even as your foreign account balances grow with normal investment returns. Frequently Asked Questions QDo I still have to file a US tax return if I live and work overseas? AYes. US citizens and resident aliens must report worldwide income regardless of where they live. Living abroad extends your filing deadline to June 15, but it doesn't remove the filing requirement. QWhat is the current FBAR form, and is TD F 90-22.1 still used? ANo. FBAR is now filed exclusively as FinCEN Form 114 through the Treasury's BSA E-Filing System. The old paper TD F 90-22.1 form has not been in use for years. QHow much foreign income can I exclude in 2026? AThe 2026 Foreign Earned Income Exclusion is up to $132,900 per qualifying person, plus a separate housing exclusion capped at $39,870. QWhat's the difference between FBAR and Form 8938? AFBAR (FinCEN Form 114) is filed separately with FinCEN once combined foreign account balances exceed $10,000. Form 8938 is filed with your IRS tax return, has higher thresholds that vary by filing status and residency, and covers a broader range of foreign assets. You may need to file both. QCan I use the Foreign Earned Income Exclusion and the Foreign Tax Credit together? ANot on the same dollar of income, but you can combine them - using the FEIE for wages under the cap and the Foreign Tax Credit for income above the cap or for non-wage income like investment earnings. QWhat happens if I don't file an FBAR when I should have? APenalties can be steep, ranging from a warning for a non-willful, reasonable-cause miss up to significant per-violation penalties for willful non-filing. If you've missed prior years, the IRS has streamlined filing compliance procedures for non-willful cases - don't just skip current-year filing to avoid drawing attention to past misses. **Categories:** Taxes and Retirement **Tags:** exclusion, foreign, income, IRS, taxes --- ### [How to Choose a Health Insurance Plan: 10 Tips for 2026–2027 Open Enrollment](https://savingtoinvest.com/health-care-plans-10-tips-on-choosing/) **Published:** October 28, 2008 **Author:** Andy **Content:** ### Key Takeaways - Employer family coverage now averages $26,993 a year, with workers paying about $6,850 of it - making plan choice one of the biggest money decisions you'll make all year. - Open enrollment for 2027 coverage runs November 1 to December 15, 2026 in most states on the ACA marketplace - a shorter window than prior years, so don't wait. - The enhanced ACA premium tax credits expired at the end of 2025: average marketplace premium payments jumped over 100%, and the subsidy cliff at 400% of the poverty level is back. - The 2026 health FSA limit is $3,400 (with up to $680 rollover), and the dependent care FSA limit jumped to $7,500 under OBBBA. - New for 2026: bronze and catastrophic marketplace plans are HSA-eligible, and Direct Primary Care memberships (up to $150/month) are now HSA-compatible. Choosing a health plan is now a five-figure decision. The average employer family plan costs **$26,993 a year** in premiums, with workers paying about **$6,850** of that from their paychecks, per the latest [KFF employer survey](https://www.kff.org/health-costs/2025-employer-health-benefits-survey/). Pick the wrong plan and you can easily leave a few thousand dollars on the table — through premiums you didn’t need to pay, or a deductible you didn’t see coming. Open enrollment (OE) is when you can change coverage without a qualifying life event. Employer OE typically runs in October and November. On the ACA marketplace, OE for 2027 coverage starts **November 1, 2026** and — in most states — now ends **December 15, 2026**, a shorter window than in past years. Covered in this Article: [Toggle](#) - [Know the Terms Before You Compare Plans](#Know_the_Terms_Before_You_Compare_Plans) - [What’s Different for 2026–2027](#Whats_Different_for_2026%E2%80%932027) - [10 Tips for Choosing the Right Plan](#10_Tips_for_Choosing_the_Right_Plan) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) ## Know the Terms Before You Compare Plans **Premium (contributions):** what’s deducted from your paycheck, pre-tax, each pay period for coverage. **Copay:** a flat dollar amount for a doctor visit or prescription. Specialist copays run higher. **Deductible:** what you pay out of pocket before the plan starts covering its share. Preventive care is generally covered at 100% even before you hit it. **Coinsurance:** your percentage of the bill after the deductible. With a $500 deductible and 80/20 coinsurance, a $1,000 hospital bill costs you $600 — the $500 deductible plus 20% of the remaining $500. **Out-of-pocket maximum:** the most you can pay in a year before the plan covers 100%. This is the number your emergency fund should be able to absorb. **HMO vs PPO vs HDHP:** HMOs are cheapest but require a primary-care physician and referrals. PPOs cost more but let you see specialists and out-of-network providers without pre-approval. High-deductible health plans (HDHPs) trade lower premiums for higher deductibles — and unlock an HSA, which I’d argue is the [best tax-advantaged account in the code](https://savingtoinvest.com/hsa-limits-and-tax-rules-how-to-best-utilize-health-savings-accounts/). **FSA:** pre-tax money for out-of-pocket health costs — up to **$3,400 in 2026**, with up to **$680** rolling over if your plan allows. The dependent care FSA limit jumped to **$7,500 per household** in 2026 under Trump’s One Big Beautiful Bill Act. Unlike an HSA, FSA money is largely use-it-or-lose-it. ## What’s Different for 2026–2027 Three changes are reshaping this year’s decision: **The enhanced ACA subsidies are gone.** The COVID-era enhanced premium tax credits expired at the end of 2025. Average marketplace premium payments more than doubled for many enrollees, and the **subsidy cliff is back**: earn even $1 over 400% of the federal poverty level and you get no premium help at all. If you buy your own coverage, estimating your income accurately matters more than it has in years. **More plans work with HSAs.** Starting in 2026, bronze and catastrophic marketplace plans count as HSA-eligible coverage, and Direct Primary Care memberships (up to $150/month individual, $300 family) are HSA-compatible under [OBBBA](https://savingtoinvest.com/reconciling-trumps-big-beautiful-bill-bbb/). **The marketplace window is shorter.** Most states now close 2027 open enrollment on December 15, 2026 — not mid-January. ## 10 Tips for Choosing the Right Plan **1. Do the total-cost math, not just the premium math.** Add your annual premium to your realistic out-of-pocket costs under each plan (use last year’s claims as a guide). A plan that costs $150/month less but carries a $3,000 higher deductible only wins if you stay healthy — my advice from experience: if you have kids or a variable health history, err toward more coverage. **2. Actually read the plan documents each year.** Doing nothing usually rolls you into your current plan at higher premiums — and coverage details shift every year (networks, drug tiers, telehealth rules). The 20 minutes of reading is the highest-paid time of your financial year. **3. Young children mean more visits.** If you have little kids, weight the decision toward lower copays and a lower deductible. Two ER visits will eat any premium savings from a cheaper plan. **4. Check your doctors’ network status first.** Price matters, but a plan your family’s doctors don’t participate in is a bad plan for you at any price. Verify before you switch — networks change annually. **5. Use the FSA — but budget it honestly.** Contributing $3,000 pre-tax saves roughly $660–$900 in taxes for most middle-income households. Base your election on what you actually spent last year, keep every receipt (FSA card purchases still get audited), and remember only ~$680 rolls over. **6. Know your employer subsidy and your COBRA exposure.** Employers pay roughly 74% of family premiums on average. If you lose your job, COBRA lets you keep the plan — but you pay the full premium plus 2%. Knowing the real total premium tells you what that safety net actually costs, and whether a marketplace plan would beat it. **7. If you’re healthy, look hard at the HDHP + HSA combo.** Lower premiums, and the HSA gives a triple tax break (deductible in, grows tax-free, tax-free out for medical costs) with limits of $4,400 individual / $8,750 family in 2026 — see my full [HSA limits and strategy guide](https://savingtoinvest.com/hsa-limits-and-tax-rules-how-to-best-utilize-health-savings-accounts/). Many employers also seed the account with a few hundred dollars. **8. Don’t over-buy the extras.** Most employer plans include free basic life and AD&D insurance. If you’re young with no dependents, that’s often enough. And take the wellness questionnaire money — most surveys pay a premium discount or cash reward just for completing them. **9. Buying on the marketplace? Model your income carefully.** With the subsidy cliff back at 400% of the poverty level, a year-end bonus or extra freelance income can retroactively wipe out your premium credit. If you’re near the line, consider levers like traditional IRA or HSA contributions that reduce MAGI. This is one place where an hour with the [healthcare.gov](https://www.healthcare.gov/) estimator pays for itself. **10. Match your out-of-pocket max to your emergency fund.** Whatever plan you pick, you should be able to cover its OOP max without a credit card. If you can’t, the “cheap” high-deductible plan is riskier than it looks — and big unreimbursed costs may only help at tax time if you clear the [7.5% AGI floor for the medical expense deduction](https://savingtoinvest.com/medical-expense-deduction-agi-limit/). Here’s what the math looks like for two hypothetical employees: **Mark**, 28, single and healthy, picks the HDHP: $95/month in premiums versus $210 for the PPO. He banks the $1,380 annual difference in his HSA, gets his employer’s $500 HSA seed, and his worst case is capped at the plan’s $4,000 out-of-pocket max. **Sarah**, with two kids under 5, pays $180/month more for the PPO with $25 copays and a $1,000 deductible. Eleven pediatrician visits and one ER trip later, she’s come out roughly $1,900 ahead of what the HDHP would have cost her. ## Common Issues to Watch Out For **Assuming your current plan is unchanged.** Auto-renewal at higher premiums with a quietly narrowed network is the most common open-enrollment own-goal I hear about. **FSA money left on the table.** Anything beyond the rollover limit is forfeited. Check your balance in November — glasses, dental work, and prescription refills are easy ways to spend it down legitimately. **Missing receipts.** FSA administrators can and do request substantiation even for card purchases. I learned this one the hard way years ago — a $200 lesson. **The marketplace income guess.** Underestimate your income and you may repay premium credits at tax time; earn past 400% of FPL and the cliff means repaying all of them. **Confusing HSA and FSA rules.** You generally can’t contribute to both a general-purpose health FSA and an HSA in the same year — a limited-purpose FSA (dental/vision) is the workaround. ## Looking Ahead: 2027 Outlook The big open question is whether Congress revives any portion of the enhanced premium tax credits — there’s been plenty of debate but no law as of mid-2026, so plan your 2027 budget assuming current (less generous) subsidy rules. Employer premiums are on track for another mid-single-digit increase for 2027, and the FSA/HSA limits get their inflation bumps in the fall (the 2027 HSA figures are already out — see the HSA guide above). I’ll update this page ahead of the fall open enrollment season and if Congress moves on the subsidies. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get the update.* Frequently Asked Questions QWhen is open enrollment for 2027 health coverage? AEmployer open enrollment typically runs October-November 2026. On the ACA marketplace, it starts November 1, 2026 and ends December 15, 2026 in most states - a shorter window than prior years. QWhat happened to the ACA premium subsidies in 2026? AThe enhanced premium tax credits expired at the end of 2025. Average marketplace premium payments rose sharply, and the subsidy cliff returned - households earning over 400% of the federal poverty level get no premium credit at all. QHow much can I put in an FSA in 2026? AUp to $3,400 in a health care FSA (per employee, so working spouses can each contribute), with up to $680 rolling over if your plan allows. The dependent care FSA limit rose to $7,500 per household under OBBBA. QIs an HDHP with an HSA better than a PPO? AIt depends on your expected care. Healthy singles often come out ahead with the HDHP's lower premiums plus the HSA's triple tax advantage ($4,400/$8,750 limits in 2026). Families with young kids or ongoing care needs often do better paying more in premiums for lower copays and deductibles. QWhat's the difference between an HSA and an FSA? AAn HSA requires a high-deductible plan, rolls over forever, is portable, and can be invested. An FSA is use-it-or-lose-it beyond a small rollover and stays with your employer. You generally can't fund both a general-purpose FSA and an HSA in the same year. QWhat does COBRA cost if I lose my job? AThe full premium plus a 2% admin fee. Since employers typically pay about three-quarters of family premiums, COBRA often means your monthly cost quadruples - compare it against a marketplace plan before defaulting to it. **Categories:** Insurance, Personal Finance and Money **Tags:** Health, HSA, open enrollment, PPO --- ### [2026 Crypto Tax Updates: IRS Form 1099-DA Is Here — What Every Investor Needs to Know](https://savingtoinvest.com/understanding-the-new-crypto-1099-da-reporting-form/) **Published:** November 17, 2021 **Author:** Andy **Content:** ### Key Takeaways - Form 1099-DA is the new IRS form for reporting digital asset (crypto) proceeds - issued by centralized brokers for 2025 transactions, filed in 2026. - Custodial exchanges (Coinbase, Kraken, Gemini, Robinhood, etc.) are required to report your gross proceeds. Cost basis reporting kicks in for 2026 transactions. - DeFi platforms, decentralized exchanges, and non-custodial wallets are NOT required to issue 1099-DA - Congress repealed the DeFi Broker Rule in April 2025. - Your tax obligations on crypto have not changed - capital gains tax still applies. The 1099-DA just means the IRS is now seeing your trades automatically. - Per-wallet cost basis tracking is now required. The old 'universal' method (pooling across all wallets) is no longer allowed. The IRS’s new Form 1099-DA hit mailboxes in early 2026 — the first time crypto investors have received a standardized tax form from their exchanges similar to what stock traders get from their brokers. If you trade on Coinbase, Kraken, Robinhood, Gemini, or any other major centralized platform, you should have received one covering your 2025 transactions. Here’s what’s actually changed, what’s still the same, and what to do if your 1099-DA doesn’t look right. If you’re still on the fence about whether crypto belongs in your portfolio in the first place, my [guide to the factors worth considering before you invest](https://savingtoinvest.com/to-crypto-or-not-5-factors-to-consider-before-investing-and-joining-the-cryptocurrency-craze/) walks through the case for and against. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get these and related updates.* Covered in this Article: [Toggle](#) - [What Is Form 1099-DA and Why Does It Matter?](#What_Is_Form_1099-DA_and_Why_Does_It_Matter) - [Who Has to Send 1099-DA Forms?](#Who_Has_to_Send_1099-DA_Forms) - [DeFi Is Exempt — Trump Signed the Repeal](#DeFi_Is_Exempt_%E2%80%94_Trump_Signed_the_Repeal) - [Cost Basis Tracking: The Per-Wallet Rule](#Cost_Basis_Tracking_The_Per-Wallet_Rule) - [Example: How 1099-DA Affects Your Filing](#Example_How_1099-DA_Affects_Your_Filing) - [Your Tax Obligations Haven’t Changed](#Your_Tax_Obligations_Havent_Changed) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## What Is Form 1099-DA and Why Does It Matter? Form 1099-DA — “Digital Asset Proceeds From Broker Transactions” — is the IRS’s new standardized reporting form for crypto. It works like a 1099-B for stocks: your broker reports the proceeds from your sales directly to the IRS, and you get a copy to use when filing your taxes. For 2025 transactions, covered brokers are required to report **gross proceeds only** — meaning the sale amount, not the cost basis or gain/loss. That expands in scope for 2026 transactions (more on that below). The big picture: the IRS now has direct visibility into your crypto trading activity on centralized platforms. This isn’t new legislation — the reporting requirements were finalized in 2024 under rules stemming from the 2021 Infrastructure Investment and Jobs Act. But 2026 is the first filing year where these forms actually land in your mailbox. Reporting PeriodWhat Brokers Must Report2025 transactions (filed 2026)Gross proceeds only2026 transactions (filed 2027)Gross proceeds + cost basis for covered securities ## Who Has to Send 1099-DA Forms? The requirement applies to **custodial brokers** — platforms that hold your digital assets on your behalf. That includes: - Centralized crypto exchanges (Coinbase, Kraken, Gemini, Binance.US, etc.) - Crypto payment processors (PayPal, Cash App for crypto transactions) - Digital asset kiosks and ATMs - Hosted wallet providers The form should arrive by **February 17, 2026** for 2025 transactions. Brokers file their copies with the IRS by February 28 (paper) or March 31 (electronic). ## DeFi Is Exempt — Trump Signed the Repeal This is the biggest policy change in this space over the past year. In April 2025, President Trump signed legislation repealing the IRS’s so-called “DeFi Broker Rule” using the Congressional Review Act. The DeFi rule would have required decentralized finance platforms, automated market makers (like Uniswap), and non-custodial wallet providers to issue 1099-DA forms starting in 2027. The repeal passed with bipartisan support — 70-27 in the Senate, 292-132 in the House — and Trump signed it. What this means practically: - Swaps on decentralized exchanges (DEXes) will not generate 1099-DA forms - Liquidity pool transactions, yield farming, and similar DeFi activity won’t be reported by the protocol - Non-custodial wallets (MetaMask, hardware wallets, etc.) have no reporting obligation **Important caveat:** The repeal of the reporting requirement does not change your tax obligation. Gains from DeFi transactions are still taxable. The IRS expects you to track and report them yourself. The difference is the IRS won’t automatically receive that data from a third party — but you still owe the tax. I’ve noticed a lot of confusion in reader emails about this. People hear “DeFi is exempt” and assume their profits are untaxed. They’re not. The exemption is from *reporting*, not from *taxation*. ## Cost Basis Tracking: The Per-Wallet Rule Starting January 1, 2026, brokers must report cost basis on **covered securities** — digital assets acquired on or after January 1, 2026 and held continuously in the same account until sold. More importantly for active traders: the IRS has eliminated the “universal” cost basis method, which let you treat crypto across all your wallets and exchanges as one combined pool. Under the new rules, **cost basis must be tracked per wallet or per account**. This matters if you regularly move crypto between exchanges or into cold storage. A Bitcoin you bought on Coinbase for $30,000 and then transferred to a hardware wallet is tracked at that $30,000 basis in that account — you can’t blend it with coins purchased elsewhere. If you use crypto tax software (Koinly, CoinTracker, TaxBit, etc.), make sure it’s set up for per-wallet basis tracking for 2026 going forward. ## Example: How 1099-DA Affects Your Filing **Example 1 — Simple case:** Sarah buys 1 ETH on Coinbase for $2,800 in March 2025 and sells it for $3,500 in October 2025. Her 1099-DA will show $3,500 in gross proceeds. When she files her 2025 taxes, she reports the $700 gain ($3,500 minus $2,800 basis) on Form 8949. The 1099-DA doesn’t calculate the gain for her — it just gives the IRS the sale amount. **Example 2 — Multiple wallets:** Mark buys 0.5 BTC on Kraken for $25,000 in January 2026 and moves it to a Ledger hardware wallet in February. He sells from the Ledger in November. His Kraken 1099-DA won’t show the sale (it happened off-platform). Mark needs to self-report the gain using the $25,000 basis from his Kraken purchase. Under the per-wallet rule, that $25,000 basis travels with those specific coins. ## Your Tax Obligations Haven’t Changed There’s been a lot of noise about Trump’s pro-crypto stance — and the administration has clearly been more favorable to the industry than its predecessor. But crypto is still fully taxable under current law. - **Short-term gains** (held less than 1 year): taxed as ordinary income - **Long-term gains** (held more than 1 year): taxed at preferential capital gains rates (0%, 15%, or 20% depending on income) - **Crypto used to buy goods/services**: treated as a sale, triggering a taxable gain or loss - **Mining and staking rewards**: treated as ordinary income at receipt The PARITY Act — re-introduced in Congress by Representatives Horsford (D-NV) and Miller (R-OH) in 2026 — would change some of these rules, but it hasn’t passed. Until something new is signed into law, existing rules apply. Things can shift quickly in this space. I’ll update this page when there are significant legislative changes — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## Common Issues to Watch Out For **Your 1099-DA may show more proceeds than your actual gains.** The form reports gross proceeds, not gains. If you sold Bitcoin for $50,000 that you originally bought for $45,000, the 1099-DA shows $50,000. You still need to report the $5,000 gain (and the $45,000 basis) separately on Form 8949. Don’t just plug the 1099-DA number into your return without reconciling it against your cost basis records. **Missing cost basis for older coins.** If you bought crypto before 2026, brokers aren’t required to have your cost basis on file. If you transferred coins onto an exchange without the original purchase history, your broker may report “unknown” basis — and the IRS may default to treating the entire proceeds as gain. Document your purchase history, especially for pre-2023 holdings. **DeFi gains are still taxable — the exemption is from reporting only.** I keep getting emails from people who think the DeFi repeal means their Uniswap gains are tax-free. They’re not. You’re just responsible for self-reporting them rather than having the protocol report them. Keep records. **Duplicate reporting if you move coins between platforms.** If you transfer crypto from one exchange to another and the receiving exchange doesn’t know the original purchase date, it may report the transfer incorrectly. Review your 1099-DA for any transfers that shouldn’t be classified as sales. **Staking rewards reported at the wrong fair market value.** Staking income should be taxed at the fair market value when received. If your exchange is using a different price snapshot than what you’d calculate yourself, the numbers may not match your records. Review carefully. Frequently Asked Questions QWhat is IRS Form 1099-DA? AForm 1099-DA is the new IRS information return that centralized crypto brokers (exchanges, payment processors, hosted wallets) must send to customers and the IRS. It reports gross proceeds from digital asset sales, similar to how a 1099-B works for stock sales. The form debuted for 2025 transactions, with copies sent to taxpayers by February 17, 2026. QDo I owe taxes on crypto if I didn't receive a 1099-DA? AYes. The 1099-DA requirement only covers custodial brokers - centralized exchanges and platforms that hold your assets. If you trade on decentralized exchanges, use non-custodial wallets, or transact in DeFi, no 1099-DA is required. But the IRS still expects you to report and pay tax on those gains. A missing 1099-DA doesn't mean the income is exempt. QAre DeFi platforms required to send 1099-DA forms? ANo. Congress repealed the IRS's DeFi Broker Rule in April 2025, and President Trump signed the repeal. Decentralized exchanges, automated market makers, non-custodial wallets, and similar permissionless infrastructure are not subject to 1099-DA reporting requirements. However, gains from DeFi transactions are still taxable - you're just responsible for tracking and reporting them yourself. QWhat does the 1099-DA actually report - gains or proceeds? AFor 2025 transactions, the 1099-DA reports gross proceeds (the sale amount) only - not your cost basis or gain. You need to calculate your own gain or loss by subtracting your cost basis from the proceeds and report that on Form 8949. Starting with 2026 transactions, brokers must also report cost basis for covered securities (assets acquired and sold within the same account on or after January 1, 2026). QWhat is per-wallet cost basis tracking and why does it matter? AThe IRS has eliminated the 'universal' method that allowed investors to pool cost basis across all wallets and exchanges. Starting in 2026, cost basis must be tracked per wallet or per account. If you move crypto between exchanges or into cold storage, the cost basis stays tied to those specific coins in that account - you can't blend it with coins purchased elsewhere. This matters most for active traders who frequently move assets between platforms. QHas Trump eliminated crypto taxes? ANo. Cryptocurrency remains fully taxable under current law. President Trump has expressed support for the crypto industry and his administration repealed the DeFi Broker Rule, but no legislation eliminating or reducing crypto capital gains taxes has been signed. Gains are still taxed as short-term or long-term capital gains depending on how long you held the asset. **Categories:** Saving and Investing ideas --- ### [Should You Sell or Hold Your Crypto? A Decision Framework That Doesn't Depend on the Price](https://savingtoinvest.com/should-i-sell-my-crypto-currency-bitcoin-ethereum-dogecoin-now-or-hold-and-buy-more/) **Published:** May 21, 2021 **Author:** Andy **Content:** ### Key Takeaways - No one can reliably predict crypto's next move, including the strategists who called $100K Bitcoin years too early or years too late - the useful sell-or-hold framework doesn't depend on the price at all. - Starting with 2026 transactions, the IRS requires crypto brokers to report cost basis on covered digital assets, and it eliminated the 'universal method' - you now need to track cost basis per wallet or per exchange account, not as one combined pool. - The wash-sale rule doesn't apply to spot crypto since it's taxed as property, not a security - you can sell at a loss and rebuy immediately and still claim the loss. That exception does not extend to spot Bitcoin ETF shares. - Holding a position more than 12 months moves any gain into the lower long-term capital gains bracket instead of taxing it as ordinary income. - The most useful sell-or-hold trigger isn't a price target - it's your position size relative to your net worth, and whether you'd buy the same dollar amount today with fresh money. Bitcoin has traded above $99,000 for stretches of 2026 and also seen six-day runs of over $1 billion in spot ETF outflows in the same year. By the time you read this, both of those facts could be stale. That’s exactly the problem with most “should I sell my crypto” articles: they’re built around a price snapshot that expires within days. This one isn’t. Below is a framework for making the decision — cost basis, holding period, tax rules, and position sizing — that works whether Bitcoin is at $40,000 or $150,000 when you’re reading it. Covered in this Article: [Toggle](#) - [Start With Your Cost Basis and Tax Lots](#Start_With_Your_Cost_Basis_and_Tax_Lots) - [How Long Have You Held It? Short vs. Long-Term Gains](#How_Long_Have_You_Held_It_Short_vs_Long-Term_Gains) - [Tax-Loss Harvesting: Crypto’s Wash-Sale Exception (For Now)](#Tax-Loss_Harvesting_Cryptos_Wash-Sale_Exception_For_Now) - [Position Sizing: The Question That Actually Matters](#Position_Sizing_The_Question_That_Actually_Matters) - [Buying More? Apply the Same Test in Reverse](#Buying_More_Apply_the_Same_Test_in_Reverse) - [Questions to Ask Before You Sell or Buy](#Questions_to_Ask_Before_You_Sell_or_Buy) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Two Examples](#Two_Examples) - [Looking Ahead: What Could Change the Math](#Looking_Ahead_What_Could_Change_the_Math) ## Start With Your Cost Basis and Tax Lots Before you decide anything, know what you actually paid. Your cost basis is the price you paid for each “lot” of crypto, including any fees, and it determines both your gain or loss and how it’s taxed. This got more complicated in 2026. The IRS eliminated the “universal method” that let you treat the same coin held across multiple wallets or exchanges as one combined pool for cost-basis purposes. You’re now expected to track cost basis on a per-wallet or per-account basis. If you bought Bitcoin on three different exchanges and moved some between wallets, each pool now needs its own record. Covered digital asset brokers are also phasing in mandatory cost-basis reporting to the IRS via the new [Form 1099-DA](https://www.irs.gov/instructions/i1099da), starting with transactions on or after January 1, 2026. Exchanges can only report basis for coins they held from purchase to sale — if you moved crypto between platforms, you’re still on the hook for tracking what you originally paid. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) and I’ll flag it if the IRS changes the cost-basis transition rules again.* ## How Long Have You Held It? Short vs. Long-Term Gains The single biggest lever you control on a crypto sale is the holding period, not the price. Sell within 12 months of buying and any gain is taxed as ordinary income at your regular tax bracket. Hold more than 12 months and the gain qualifies for long-term capital gains rates instead — generally 0%, 15%, or 20% depending on your taxable income. See my [full capital gains tax rates guide](https://savingtoinvest.com/capital-gains-tax-short-and-long-term-rates-plus-other-factors-to-consider/) for the current income thresholds at each rate. If you’re sitting a few weeks short of the one-year mark on a position with a real gain, that alone is often worth waiting for — the tax difference can be larger than a lot of short-term price moves. ## Tax-Loss Harvesting: Crypto’s Wash-Sale Exception (For Now) If part of your portfolio is underwater, crypto has a genuine tax advantage over stocks. The wash-sale rule under IRC Section 1091 blocks you from claiming a loss on a stock or security if you buy it back within 30 days. That rule doesn’t apply to spot cryptocurrency, because the IRS classifies it as property, not a security. You can sell Bitcoin at a loss and buy it right back the same day and still claim the capital loss. One exception: if you hold a spot Bitcoin ETF instead of the coin directly, the wash-sale rule does apply, because ETF shares are securities. There have also been proposals in Congress to extend wash-sale rules to crypto directly — none have passed as of mid-2026, but it’s worth checking before you lean on this strategy every year. ## Position Sizing: The Question That Actually Matters Here’s the reframe that makes this decision easier: stop asking “will it go up from here” and start asking “what percentage of my net worth is this now, and am I okay with that.” If a crypto position has grown to a size that would meaningfully hurt you if it dropped 70% tomorrow, that’s a rebalancing signal regardless of what the price does next. This is the same logic that applies to any single stock position that’s grown too large relative to your total portfolio — see my [portfolio diversification guide](https://savingtoinvest.com/importance-of-diversification/) for the broader version of this idea. Trimming a position back to your target allocation isn’t the same as predicting a top. It’s risk management, and it works the same whether you’re right or wrong about where the price goes next. ## Buying More? Apply the Same Test in Reverse If you’re considering adding to a position, ask whether you’d buy that same dollar amount today with fresh cash, independent of what you already own. If the honest answer is no, that’s a signal you’re anchored to a past price rather than making a forward-looking decision. For people who want to add to a position without trying to time a single entry point, [dollar-cost averaging](https://savingtoinvest.com/dollar-cost-averaging-myths/) — investing a fixed dollar amount on a fixed schedule regardless of price — removes the guesswork. It won’t guarantee the best price, but it removes the temptation to chase a rally or panic-buy a dip. If you’re still deciding whether crypto deserves a spot in your portfolio at all — before you add another dollar — see my [breakdown of the factors worth weighing before investing](https://savingtoinvest.com/to-crypto-or-not-5-factors-to-consider-before-investing-and-joining-the-cryptocurrency-craze/). ## Questions to Ask Before You Sell or Buy A short checklist I’d run through before acting on any crypto position, sell or buy: - Do I need this cash for something specific in the next 1–3 years? - What percentage of my net worth does this position represent right now? - Would I buy this same dollar amount today with new money? - Am I reacting to a headline, or has something about my actual financial plan changed? - Have I set aside enough to cover the tax bill if I sell? - Have I checked my holding period against the 12-month long-term threshold? ## Common Issues to Watch Out For I hear the same handful of mistakes from readers every time crypto has a big move in either direction. **Treating “diamond hands” as a strategy rather than a decision.** Holding on principle, without periodically checking position size against your overall net worth, isn’t the same as an active choice to hold. **Losing track of cost basis after 2026’s rule changes.** With the universal method gone, moving coins between wallets without recording the transfer basis can leave you unable to prove what you actually paid. **Assuming the wash-sale exception covers everything crypto-related.** It covers spot coins, not spot Bitcoin ETF shares — mixing the two up can cost you a disallowed loss. **Forgetting the 3.8% Net Investment Income Tax.** High earners (generally above $200,000 single or $250,000 married filing jointly in modified AGI) owe this surtax on top of capital gains tax on crypto profits. **Selling everything at once instead of trimming.** A full exit locks in your entire tax bill at once; scaling out over more than one tax year can sometimes reduce the total hit, depending on your bracket. ## Two Examples **Mark** bought Bitcoin in 2020 and it’s grown to roughly 40% of his total investable net worth. He isn’t reacting to any price target — he’s trimming back to his target allocation of 10%, selling a portion each quarter across two tax years to manage the capital gains hit and stay in a lower bracket each year. **Sarah** wants exposure to Ethereum but doesn’t want to guess at a single entry price. She set up a recurring $200 monthly purchase through her exchange, and she reviews her total crypto allocation twice a year rather than checking the price daily. ## Looking Ahead: What Could Change the Math Two things I’m watching that could shift this framework. First, the temporary relief allowing you to use your own cost-basis method and lot identification independent of your broker’s records is currently set to expire at the end of 2026 — after that, you’ll need to match your broker’s method or default to FIFO (first-in, first-out) unless you set up your preferred method directly with them. Second, proposals to extend the wash-sale rule to crypto directly have been floated in Congress before and could resurface. Neither has passed as of mid-2026, but either change would directly affect the tax-loss harvesting section above. I’ll update this page if either of those shifts. *[Subscribe here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get notified.* **Related reading:** - [2026 Crypto Tax Updates: IRS Form 1099-DA Explained](https://savingtoinvest.com/how-bidens-infrastructure-bill%e2%81%a0-affects-crypto-investors-via-increase-disclosure-for-taxation/) - [Capital Gains Tax Rates — Short and Long Term, Tax Loss Harvesting, and NIIT](https://savingtoinvest.com/capital-gains-tax-short-and-long-term-rates-plus-other-factors-to-consider/) - [The Importance of Portfolio Diversification in Volatile Markets](https://savingtoinvest.com/importance-of-diversification/) - [Dollar Cost Averaging Myths](https://savingtoinvest.com/dollar-cost-averaging-myths/) - [How to Invest and Buy Cryptocurrency: A Beginner’s Guide](https://savingtoinvest.com/bitcoin-ethereum-and-other-crypto-explained-for-over-50-investors-where-and-how-to-invest-in-digital-coins-and-currency/) Frequently Asked Questions QShould I sell my crypto now or hold? AThere's no universal answer, and anyone giving you one is guessing at short-term price moves. The useful decision depends on your cost basis, how long you've held the position, your current tax bracket, and what percentage of your net worth the position represents - not on where the price happens to be today. QDoes the wash-sale rule apply to cryptocurrency? ANo, not to spot crypto. The IRS treats cryptocurrency as property rather than a security, so the wash-sale rule under IRC Section 1091 doesn't apply - you can sell at a loss and immediately buy back the same coin and still claim the loss. The exception is spot Bitcoin ETF shares, which are securities and are subject to the wash-sale rule. QHow does the new IRS Form 1099-DA affect my crypto taxes? AStarting with 2025 transactions filed in 2026, covered crypto brokers report your sales to the IRS on Form 1099-DA. Cost-basis reporting is phasing in for transactions on or after January 1, 2026, and only covers assets the broker held from purchase to sale - you're still responsible for tracking basis on anything moved between wallets or platforms. QWhat's the difference between short-term and long-term capital gains on crypto? ASell crypto you've held 12 months or less and any gain is taxed as ordinary income at your regular tax bracket. Hold it longer than 12 months and the gain qualifies for the lower long-term capital gains rates instead, generally 0%, 15%, or 20% depending on your taxable income. QCan I dollar-cost average out of a crypto position instead of selling all at once? AYes. Selling a fixed dollar amount or percentage on a set schedule spreads your exit across multiple price points and, if done across more than one tax year, can spread the resulting tax bill too, rather than realizing the entire gain in a single year. QHow much of my portfolio should be in crypto? AThere's no single correct number, and anyone with a precise universal answer is oversimplifying. The more useful approach is picking a target allocation you're comfortable with, then treating any drift above that target - regardless of price direction - as your signal to rebalance. QWhat records do I need to keep for crypto cost basis in 2026? ASince the IRS eliminated the universal cost-basis method, you need to track your cost basis separately for each wallet or exchange account rather than pooling everything together. Keep records of the purchase price, date, and fees for each lot, especially for any coins you've moved between platforms, since exchanges can only report basis for assets they held the entire time. **Categories:** Government Rebates and Payments --- ### [2026 Capital Gains Tax Rates and 2027 Forecast — Short and Long Term, Tax Loss Harvesting, and NIIT](https://savingtoinvest.com/capital-gains-tax-short-and-long-term-rates-plus-other-factors-to-consider/) **Published:** May 18, 2011 **Author:** Andy **Content:** ### Key Takeaways - Long-term capital gains are taxed at 0%, 15%, or 20% depending on your taxable income and filing status - far below ordinary income rates. - For 2026 (returns filed in 2027), the 0% rate applies to singles with taxable income up to $49,450 and married couples up to $98,900. - Short-term gains are taxed as ordinary income - rates from 10% to 37%. - The One Big Beautiful Bill (OBBB) did not change capital gains rates, but permanently extended lower ordinary income brackets, which affects how your overall taxable income is calculated. - The 3.8% Net Investment Income Tax (NIIT) applies on top of capital gains rates for higher earners - thresholds are NOT inflation-adjusted. When you sell a capital asset — a stock, bond, cryptocurrency, real estate, or other investment — the profit (or loss) is classified as a capital gain or loss. How much you owe in tax depends on three things: what type of asset it was, how long you held it, and your taxable income. Capital gains are divided into short-term (held one year or less) and long-term (held more than one year). Long-term gains get significantly better tax treatment — that’s the core planning opportunity here. Covered in this Article: [Toggle](#) - [How Short-Term vs. Long-Term Capital Gains Are Taxed](#How_Short-Term_vs_Long-Term_Capital_Gains_Are_Taxed) - [2026 Long-Term Capital Gains Tax Rates](#2026_Long-Term_Capital_Gains_Tax_Rates) - [What the One Big Beautiful Bill (OBBB) Changed — and Didn’t](#What_the_One_Big_Beautiful_Bill_OBBB_Changed_%E2%80%94_and_Didnt) - [Capital Loss Deduction and Tax-Loss Harvesting](#Capital_Loss_Deduction_and_Tax-Loss_Harvesting) - [3.8% Net Investment Income Tax (NIIT)](#38_Net_Investment_Income_Tax_NIIT) - [Special Capital Gains Rates: Collectibles and Depreciation](#Special_Capital_Gains_Rates_Collectibles_and_Depreciation) - [Investment Cost Basis](#Investment_Cost_Basis) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027 Capital Gains Projections](#Looking_Ahead_2027_Capital_Gains_Projections) ## How Short-Term vs. Long-Term Capital Gains Are Taxed **Short-term capital gains** (assets held one year or less) are taxed at the same rate as ordinary income. Depending on your bracket, that’s anywhere from 10% to 37%. **Long-term capital gains** (assets held more than one year) qualify for preferential rates: 0%, 15%, or 20%. Which rate applies depends on your total taxable income and filing status. The one-year holding period cutoff is exact — a position held 365 days is still short-term. Day 366 flips it to long-term. That distinction can mean thousands of dollars in tax savings on a large gain. For the full federal income tax brackets that govern short-term rates, see the [2026-2027 IRS tax brackets and income thresholds](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/) on this site. ## 2026 Long-Term Capital Gains Tax Rates These apply to the **2026 tax year** — returns filed in early 2027. Filing Status0% Rate15% Rate20% RateSingleUp to $49,450$49,451 – $545,500Over $545,500Married Filing JointlyUp to $98,900$98,901 – $613,700Over $613,700Married Filing SeparatelyUp to $49,450$49,451 – $306,850Over $306,850Head of HouseholdUp to $66,200$66,201 – $579,600Over $579,600 *Source: [IRS Revenue Procedure 2025-32](https://www.irs.gov/pub/irs-drop/rp-25-32.pdf)* For a married couple, the 0% bracket now extends nearly to $99,000 in taxable income. If you’re in or near retirement and managing withdrawals carefully, this is one of the most valuable planning levers available. **Example — 0% rate in practice:** Sarah is single with $45,000 in taxable income. She sells stock she’s held for two years and realizes a $6,000 long-term gain. Her total taxable income after the gain is $51,000 — and $4,450 of that gain stays in the 0% bracket (up to $49,450). She owes 15% only on the remaining $1,550. Total capital gains tax: about $233. *Things can shift quickly — I’ll update this page as official 2027 IRS guidance is released. [Subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/).* ## What the One Big Beautiful Bill (OBBB) Changed — and Didn’t The One Big Beautiful Bill (OBBB), signed into law on July 4, 2025, permanently extended the lower ordinary income tax brackets from the 2017 Tax Cuts and Jobs Act (TCJA). It did **not** change capital gains rates themselves — they remain at 0%, 15%, and 20%. But here’s why it matters indirectly: because ordinary income brackets are now permanent at lower levels, more taxpayers may find themselves in the 0% capital gains bracket than under pre-TCJA law. A higher standard deduction ($16,100 for singles, $32,200 for MFJ in 2026) also helps reduce taxable income. The OBBB also expanded the **Qualified Small Business Stock (QSBS)** exclusion. For QSBS held at least five years, 100% of gains can be excluded (up from varying limits). The maximum exclusion increased from $10 million to $15 million. Worth knowing if you hold early-stage company stock. ## Capital Loss Deduction and Tax-Loss Harvesting If your capital losses exceed your capital gains in a given year, you can deduct up to **$3,000 of the net loss** against ordinary income ($1,500 if married filing separately). Any remaining loss carries forward indefinitely to future tax years. This is the foundation of **tax-loss harvesting** — strategically selling positions at a loss to offset gains elsewhere in your portfolio. In a down year for markets, it’s one of the more practical tax moves available. **Example:** Jim sold two positions this year. One had a $12,000 long-term gain, another had a $9,000 long-term loss. His net capital gain is $3,000 — and he only owes tax on that amount. For a step-by-step approach, see the [tax-loss harvesting strategy](https://savingtoinvest.com/tax-loss-harvesting-by-selling-stocks-and-lowering-your-taxable-income/) covered here previously. One critical rule: the **wash sale rule** prohibits claiming a loss if you buy the same or “substantially identical” security within 30 days before or after the sale. The IRS will disallow the loss, and the disallowed amount gets added to the cost basis of the new shares instead. As of mid-2026, the wash-sale rule applies to stocks and securities — crypto is still in a different category, though watch for IRS guidance on that. ## 3.8% Net Investment Income Tax (NIIT) Higher-income taxpayers owe an additional **3.8% NIIT** on top of their capital gains rate. This surtax applies to the lesser of: net investment income, or the amount by which your MAGI exceeds these thresholds: Filing StatusNIIT ThresholdSingle / Head of Household$200,000Married Filing Jointly$250,000Married Filing Separately$125,000 Unlike capital gains brackets, these NIIT thresholds are **not** adjusted for inflation — they’ve been frozen since 2013. More taxpayers get pulled into NIIT territory every year without any real increase in purchasing power. For a single filer with $220,000 in AGI that includes $40,000 in investment income, NIIT applies only to the $20,000 excess above $200,000. NIIT owed: $20,000 × 3.8% = **$760**. For high earners in the 20% long-term bracket who also owe NIIT, the effective rate on gains reaches **23.8%** — still well below the 37% top rate on ordinary income. ## Special Capital Gains Rates: Collectibles and Depreciation Not everything qualifies for the standard 0/15/20% treatment: **Collectibles (max 28%):** Art, antiques, coins, stamps, precious metals held as investments, and similar items are taxed at a maximum rate of 28% on long-term gains. If your ordinary income rate is below 28%, the lower rate applies instead. **Depreciation recapture (max 25%):** When you sell rental property or other depreciable real estate at a profit, the portion of gain attributable to previously claimed depreciation deductions is taxed at up to 25% (known as “unrecaptured Section 1250 gain”). The remaining gain above that is taxed at standard long-term rates. **Crypto:** The IRS treats cryptocurrency as property, so the same short-term/long-term rules apply. One thing that changed as of 2026: brokers are now reporting crypto transactions directly to the IRS via [Form 1099-DA](https://www.irs.gov/pub/irs-pdf/f1099da.pdf). Accurate record-keeping is no longer optional. ## Investment Cost Basis Your **cost basis** is the all-in price you paid for a security, including brokerage commissions. When you have multiple lots of the same security — from separate purchases or dividend reinvestments — you can calculate cost basis two ways: - **Average-cost method:** Averages the cost across all lots - **Actual-cost (specific identification) method:** Lets you choose which specific shares to sell For tax-loss harvesting, the actual-cost method usually wins. It lets you sell your highest-cost shares first, maximizing the realized loss (or minimizing the gain). Most major brokerages let you set this at the account level — worth confirming your default method, especially in taxable brokerage accounts. Capital gain distributions from **mutual funds and REITs** also count as capital gains — even if you never sold a share. These show up on your 1099 at year-end and can be a surprise if you’re not watching. **Dividends** are different: they’re taxed as ordinary income unless they’re “qualified dividends,” which get the same preferred 0/15/20% rate as long-term gains. For retirement planning, see how [401(k) and IRA contribution limits](https://savingtoinvest.com/401k-ira-and-roth-ira-contribution-and-income-limits) interact with your overall taxable income — especially relevant if you’re trying to stay in the 0% capital gains bracket. ## Common Issues to Watch Out For I get a lot of questions about capital gains that come from the same handful of misunderstandings. Here are the ones worth knowing before you file: **1. Assuming your capital gain doesn’t push you into a higher bracket.** Long-term gains are “stacked on top of” ordinary income. If you have $40,000 in wages and a $20,000 long-term gain, the $20,000 is taxed at whatever rate applies after adding it to your income — not at the 0% rate automatically. **2. Forgetting about NIIT.** Many investors plan around the 15% or 20% rate but forget the 3.8% NIIT on top for incomes above $200k/$250k. The effective rate on a large gain can be 18.8% or 23.8%. **3. Triggering the wash sale rule while loss harvesting.** Selling a losing position and buying it back (or something substantially identical) within 30 days wipes out the tax benefit. Plan your 30-day window before repurchasing. **4. Not tracking cost basis across reinvested dividends.** Every dividend reinvestment creates a new lot with its own cost basis and holding period. If you don’t track these, you may overstate your gain — and overpay taxes. **5. Treating inherited assets the same as purchased assets.** Inherited property typically gets a **stepped-up cost basis** to fair market value at the date of death. That means if you immediately sell inherited stock, your gain (for tax purposes) may be zero or minimal, even if the original buyer paid very little for it. ## Looking Ahead: 2027 Capital Gains Projections The IRS typically releases the following year’s inflation adjustments in October or November — so official 2027 thresholds aren’t out yet as of mid-2026. Based on recent inflation trends (roughly 2–3% annually), I’d project the 2027 thresholds to look something like: - **Single 0% bracket:** Approximately $50,500–$51,000 - **MFJ 0% bracket:** Approximately $101,000–$102,000 That’s a projection, not a guarantee — I’ll update this page the moment the IRS releases the official Revenue Procedure, typically in late October or November 2026. **Related reading:** - [2026-2027 IRS Tax Brackets](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/) - [Tax-Loss Harvesting Before December 31, 2026: My 3-Step Process](https://savingtoinvest.com/tax-loss-harvesting-by-selling-stocks-and-lowering-your-taxable-income/) - [2026 Year-End Tax Planning: 15 Moves to Make Before December 31](https://savingtoinvest.com/15-year-end-tax-deductions-to-remember-unless-you-want-to-give-the-irs-a-tax-free-loan/) - [Selling Your Home in 2026? The $250,000/$500,000 Tax Exclusion Hasn’t Moved Since 1997](https://savingtoinvest.com/taxes-and-gains-i-can-exclude-when-selling-my-home/) - [2026 Crypto Tax Updates: IRS Form 1099-DA Is Here](https://savingtoinvest.com/understanding-the-new-crypto-1099-da-reporting-form/) Frequently Asked Questions QWhat is the difference between short-term and long-term capital gains tax? AShort-term capital gains apply to assets held one year or less and are taxed at your ordinary income rate (10%-37%). Long-term capital gains apply to assets held more than one year and are taxed at preferential rates of 0%, 15%, or 20%, depending on your taxable income. QWhat are the 2026 long-term capital gains tax rates? AFor 2026 (returns filed in 2027), the 0% rate applies to single filers with taxable income up to $49,450 and married couples filing jointly up to $98,900. The 15% rate applies up to $545,500 (single) and $613,700 (MFJ). Above those thresholds, the rate is 20%. QDid the One Big Beautiful Bill change capital gains tax rates? ANo. The OBBB, signed July 4, 2025, permanently extended the lower ordinary income tax brackets from the 2017 TCJA but did not change capital gains tax rates. The 0%, 15%, and 20% structure remains in place. It did expand the Qualified Small Business Stock (QSBS) exclusion to $15 million and extended the 100% exclusion to QSBS held at least five years. QWhat is the Net Investment Income Tax (NIIT) and who pays it? AThe NIIT is a 3.8% surtax on investment income (including capital gains, dividends, and interest) for taxpayers with modified AGI above $200,000 (single) or $250,000 (married filing jointly). These thresholds are not inflation-adjusted, so more taxpayers are affected each year. High earners in the 20% capital gains bracket who also owe NIIT face an effective rate of 23.8% on long-term gains. QHow does tax-loss harvesting work? ATax-loss harvesting means selling investments at a loss to offset capital gains. Net capital losses above your gains can offset up to $3,000 of ordinary income per year, with remaining losses carried forward. The key rule to know: the wash-sale rule disallows the loss if you buy the same or substantially identical security within 30 days before or after the sale. QWhat capital gains rate applies to cryptocurrency? AThe IRS treats crypto as property, so the same rules apply as stocks. Gains on crypto held more than one year are taxed at long-term capital gains rates (0%, 15%, or 20%). Short-term crypto gains are taxed as ordinary income. As of 2026, crypto brokers are required to report transactions to the IRS via Form 1099-DA. QWill capital gains tax brackets increase for 2027? AThe IRS hasn't released official 2027 figures yet - they're typically announced in October or November. Based on recent inflation trends, I'd estimate the single 0% bracket could rise to roughly $50,500-$51,000, but that's a projection, not a confirmed number. **Categories:** Finance and Investing 101, Taxes and Retirement **Tags:** capital gains, investment, IRS, Long term, personal tax, Short term --- ### [Tax-Loss Harvesting Before December 31, 2026: My 3-Step Process](https://savingtoinvest.com/tax-loss-harvesting-by-selling-stocks-and-lowering-your-taxable-income/) **Published:** December 23, 2022 **Author:** Andy **Content:** ### Key Takeaways - Realized capital losses first offset realized capital gains dollar for dollar; any excess loss up to $3,000 ($1,500 if married filing separately) can offset ordinary income. - Losses beyond the $3,000 limit carry forward indefinitely to future tax years - they don't expire. - The wash-sale rule disallows your loss if you buy the same or a 'substantially identical' security within 30 days before or after the sale. - Crypto still isn't subject to the wash-sale rule as of 2026 - you can sell a coin at a loss and buy it right back - but spot Bitcoin/Ethereum ETF shares ARE subject to it, since ETF shares are securities. - This only applies to taxable brokerage accounts - there's no capital gains or losses to harvest inside an IRA or 401(k). Every December, I go through the same three-step process on my taxable brokerage accounts: figure out where my realized gains and losses stand, decide what to sell to offset them, and recheck the numbers before December 31. It’s one of the simplest, most repeatable tax moves available to any investor with a taxable account. Tax-loss harvesting (TLH) means selling investments that are down to realize a capital loss — which offsets capital gains elsewhere in your portfolio, and can cut up to $3,000 off your ordinary taxable income if your losses exceed your gains. It’s worth doing every year, not just when the market’s had a rough one. Covered in this Article: [Toggle](#) - [Step 1: Figure Out Your Realized Gains or Losses to Date](#Step_1_Figure_Out_Your_Realized_Gains_or_Losses_to_Date) - [Step 2: Decide What to Sell](#Step_2_Decide_What_to_Sell) - [Step 3: Recheck Your Numbers Before December 31](#Step_3_Recheck_Your_Numbers_Before_December_31) - [The Wash-Sale Rule](#The_Wash-Sale_Rule) - [Crypto’s Wash-Sale Loophole — Still Open in 2026](#Cryptos_Wash-Sale_Loophole_%E2%80%94_Still_Open_in_2026) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) ## Step 1: Figure Out Your Realized Gains or Losses to Date Before deciding what to sell, you need to know where you actually stand. Most brokerages — Fidelity, E\*Trade, Schwab, and others — have a tax center or “realized gains/losses” report you can pull any time during the year, broken out by short-term and long-term. Only taxable brokerage accounts matter here. IRAs and 401(k)s don’t generate capital gains or losses in the tax sense, so skip those entirely. Separate your short-term and long-term positions when you pull this. Short-term gains are taxed at [ordinary income rates](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/) — up to 37% — so it’s more valuable to offset those first with short-term losses before touching your long-term positions. If you own mutual funds, remember they can distribute capital gains to you automatically throughout the year, even if you never sold a share yourself. Check for any capital gain distributions on your statements — they count toward your total. ## Step 2: Decide What to Sell Once you know your starting position, the second step is deciding what to sell before December 31st to harvest losses. My general order of priority: **1. Sell losing positions I don’t expect to recover.** These are the easiest calls — if a stock’s underlying business has deteriorated and I don’t see a path back, the loss is worth locking in regardless of tax timing. **2. Sell losing positions I still like long-term.** If I believe in the company but it’s down for the year, I sell anyway to harvest the loss, then wait out the 30-day wash-sale window before buying back in (or buy a similar-but-not-identical fund in the meantime to stay invested). **3. Don’t forget crypto, ETFs, and mutual funds.** Any of these can generate a harvestable loss too — it’s easy to focus only on individual stocks and miss a fund sitting at a loss. This process is iterative, not a single afternoon’s work. Give yourself a few weeks in November and December to work through it rather than trying to execute everything on the last trading day of the year — thin holiday trading volume and any last-minute portfolio moves are easier to manage without a deadline crunch. **Example — Marcus** has $18,000 in realized long-term gains for the year from selling a stock that had a great run. He also holds an ETF position down $14,000 and a handful of individual stocks down a combined $5,000 that he no longer believes in. By selling all of it, he generates $19,000 in losses — enough to fully offset his $18,000 gain, with $1,000 left over to apply toward the $3,000 ordinary-income deduction. ## Step 3: Recheck Your Numbers Before December 31 The final step is simply repeating step 1 — pulling your updated realized gains/losses report to confirm where you landed after your Step 2 sales, and making any last adjustments before the year closes. If you’re in a high bracket, that extra $3,000 loss against ordinary income is worth more than it looks. At the 37% top bracket, it’s roughly $1,110 in tax savings. Add the 3.8% Net Investment Income Tax if you’re subject to it, and the effective benefit climbs higher for high earners. Remember that any loss beyond what you can use this year doesn’t disappear — it carries forward indefinitely to future tax years, keeping its short-term or long-term character until it’s fully used up. ## The Wash-Sale Rule The wash-sale rule is the one thing that can quietly undo a tax-loss harvesting move if you’re not careful. You (or your spouse) can’t claim a loss if, within 30 days before or after the sale, you buy the same or a “substantially identical” security — including through an option or contract to buy it. If the rule applies, the disallowed loss doesn’t just vanish — it gets added to the cost basis of your new shares, effectively deferring the benefit rather than eliminating it outright. **A practical workaround:** if you want to stay invested in that asset class during the 30-day window, buy a similar-but-not-identical fund (a different S&P 500 index fund from a different provider, for example) and then move back to your original position after the window closes. ## Crypto’s Wash-Sale Loophole — Still Open in 2026 Here’s a genuine asymmetry worth knowing about: the wash-sale rule applies to “stocks and securities,” and the IRS still treats cryptocurrency as property, not a security. As of 2026, no legislation has closed this gap. That means you can sell a crypto position at a loss and buy it right back immediately — same day, even — and still claim the loss. Congress has considered extending wash-sale treatment to digital assets multiple times (including in the 2021 Build Back Better proposal and subsequent budget proposals), but nothing has passed. One important wrinkle: this loophole applies to the coins themselves, not spot Bitcoin or Ethereum ETF shares. Since ETF shares are securities, buying back a spot crypto ETF within 30 days of selling at a loss triggers the same wash-sale rule that applies to any stock. If you’re harvesting a crypto loss, know which vehicle you’re actually holding. With [Form 1099-DA reporting now in effect for 2026](https://savingtoinvest.com/understanding-the-new-crypto-1099-da-reporting-form/), your exchange is reporting your transactions directly to the IRS either way — so accurate record-keeping matters more than it used to, loophole or not. ## Common Issues to Watch Out For **1. Forgetting mutual fund capital gain distributions.** These get taxed as long-term gains regardless of how long you personally held the fund, and they’re easy to overlook since you didn’t actively sell anything. **2. Triggering a wash sale without realizing it.** Buying back the same fund in a different account (like your spouse’s IRA) still counts — the rule applies across your combined household accounts, not just the one where you sold. **3. Harvesting losses you don’t actually need.** If you have no gains to offset this year, it can still make sense to harvest losses — up to $3,000 applies against ordinary income, and any excess carries forward to offset future gains. **4. Confusing the crypto wash-sale gap with a green light on ETFs.** The loophole is real for the coins themselves, but not for spot crypto ETF shares, which are treated as ordinary securities. **5. Waiting until the last week of December.** Give yourself time to review and adjust — this is genuinely an iterative process, and rushing it in the final days increases the odds of a mistake. ## Looking Ahead: 2027 Outlook The wash-sale rule’s crypto exemption has been targeted in prior legislative proposals without ever passing, and I wouldn’t count on that changing for 2027 — but it’s worth watching each time a new budget reconciliation bill moves through Congress, since it’s a recurring revenue-raiser lawmakers keep floating. The $3,000 capital loss deduction against ordinary income is not currently indexed for inflation and has been fixed at that level for decades — a limit that arguably deserves the same scrutiny as the frozen home-sale exclusion. I’ll flag here if that ever changes. **Related reading:** - [2025 and 2026 Updates: Capital Gains Tax Rates — Short and Long Term, Tax Loss Harvesting, and NIIT](https://savingtoinvest.com/capital-gains-tax-short-and-long-term-rates-plus-other-factors-to-consider/) - [2026–2027 Year-End Tax Planning: 15 Moves to Make Before December 31](https://savingtoinvest.com/15-year-end-tax-deductions-to-remember-unless-you-want-to-give-the-irs-a-tax-free-loan/) - [2026 Crypto Tax Updates: IRS Form 1099-DA Is Here](https://savingtoinvest.com/understanding-the-new-crypto-1099-da-reporting-form/) - [Should You Sell or Hold Your Crypto? A Decision Framework That Doesn’t Depend on the Price](https://savingtoinvest.com/should-i-sell-my-crypto-currency-bitcoin-ethereum-dogecoin-now-or-hold-and-buy-more/) Frequently Asked Questions QHow does tax-loss harvesting work? AYou sell investments at a loss to offset capital gains realized elsewhere in your portfolio. If your losses exceed your gains, up to $3,000 ($1,500 if married filing separately) can offset ordinary income, and any remaining loss carries forward to future tax years. QWhat is the wash-sale rule? AIt disallows a claimed capital loss if you buy the same or a 'substantially identical' security within 30 days before or after the sale that generated the loss. The disallowed loss gets added to the cost basis of your new shares instead of being lost entirely. QDoes the wash-sale rule apply to cryptocurrency? ANot as of 2026. The IRS treats crypto as property rather than a security, so the wash-sale rule doesn't apply to coins themselves - you can sell at a loss and buy back immediately. It does apply to spot crypto ETF shares, since those are securities. QCan I carry forward capital losses to future years? AYes, indefinitely. If your net capital loss exceeds the $3,000 annual limit against ordinary income, the excess carries forward and keeps its short-term or long-term character until it's fully used. QDoes tax-loss harvesting apply to my IRA or 401(k)? ANo. Capital gains and losses only apply to taxable brokerage accounts. There's no tax benefit to harvesting losses inside a tax-advantaged retirement account. QWhen should I do tax-loss harvesting? AAny time before December 31st for the current tax year, though I recommend starting the review in November to leave time to work through the process iteratively rather than rushing it in the final days of December. **Categories:** ETFs and Mutual Funds, Saving and Investing ideas, Taxes and Retirement **Tags:** Capital loss, gains, income, stocks, taxes --- ### [Selling Your Home in 2026? The $250,000/$500,000 Tax Exclusion Hasn't Moved Since 1997](https://savingtoinvest.com/taxes-and-gains-i-can-exclude-when-selling-my-home/) **Published:** November 17, 2009 **Author:** Andy **Content:** ### Key Takeaways - The home sale gain exclusion is $250,000 (single) or $500,000 (married filing jointly) - set in 1997 and never inflation-indexed since. - To qualify, you need to pass both the ownership test and the use test: owning and living in the home as your main residence for at least 2 of the 5 years before the sale. - You can only use this exclusion once every 2 years - it's designed for homeowners, not house flippers. - Gain above your exclusion is taxed as a capital gain (0%, 15%, or 20%, plus the 3.8% NIIT for higher earners) - not as ordinary income. - Three bills are currently in Congress to raise or eliminate this cap, plus a separate push to have Treasury index capital gains for inflation by regulation - none has passed as of mid-2026. If you sell your main home in 2026, you can still exclude up to $250,000 of gain from your taxable income if you’re single, or $500,000 if you’re married filing jointly. That number hasn’t changed since the Taxpayer Relief Act of 1997 — nearly thirty years, no inflation adjustment, ever. I get questions about this exclusion every time a reader is getting ready to sell, so here’s how it actually works, what trips people up, and where things stand in Washington on finally updating it. Covered in this Article: [Toggle](#) - [How the Home Sale Exclusion Actually Works](#How_the_Home_Sale_Exclusion_Actually_Works) - [Partial Exclusion — What If You Don’t Meet the 2-Year Rule?](#Partial_Exclusion_%E2%80%94_What_If_You_Dont_Meet_the_2-Year_Rule) - [Calculating Your Adjusted Cost Basis](#Calculating_Your_Adjusted_Cost_Basis) - [Inherited Homes: The Stepped-Up Basis](#Inherited_Homes_The_Stepped-Up_Basis) - [Multiple Homes and Rental Conversions](#Multiple_Homes_and_Rental_Conversions) - [Where Things Stand in Congress](#Where_Things_Stand_in_Congress) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) ## How the Home Sale Exclusion Actually Works When you sell your main home, your gain is the sale price minus your adjusted cost basis (what you paid, plus qualifying improvements and selling costs). If that gain is under your exclusion limit, you generally owe nothing on it — and per [IRS Topic 701](https://www.irs.gov/taxtopics/tc701), you don’t even need to report the sale on your tax return. To qualify for the full exclusion, you need to pass two tests over the 5-year period ending on the sale date: **The ownership test.** You owned the home for at least 2 years (roughly 24 months) during that 5-year window. The 2 years don’t need to be consecutive. **The use test.** You lived in the home as your primary residence for at least 2 years during the same 5-year window — also not required to be consecutive. You can only claim this exclusion once every 2 years. That rule exists specifically to prevent people from flipping primary residences to dodge capital gains tax. ## Partial Exclusion — What If You Don’t Meet the 2-Year Rule? If you sold before hitting the 2-year mark, you may still qualify for a partial exclusion if the sale was due to a change in workplace location, health reasons, or another IRS-recognized unforeseen circumstance (divorce, death, multiple births from a single pregnancy, and similar events all qualify). The partial exclusion is calculated proportionally — based on the fraction of the 2-year requirement you actually met. If you lived in the home for 12 months instead of 24 before a qualifying job relocation, you’d generally get about half of the full exclusion ($125,000 single / $250,000 married). You’ll need documentation if the IRS ever asks — job offer letters, medical records, or similar proof tied to the specific exception you’re claiming. ## Calculating Your Adjusted Cost Basis Your cost basis isn’t just your purchase price. It includes: - The original purchase price - Closing costs and legal fees from the purchase - Capital improvements (a new roof, a finished basement, a kitchen remodel) — not routine repairs or maintenance - Selling costs (agent commissions, title fees, escrow fees) Every capital improvement you can document raises your basis and shrinks your taxable gain. Keeping receipts for renovations is the single highest-leverage thing you can do here — it’s the one lever fully within your control, regardless of what Congress does with the exclusion cap. **Example — Priya and Alex**, married, bought a home in 2006 for $310,000. Over 18 years they spent $65,000 on a kitchen remodel, a new roof, and a finished basement, plus $9,000 in original closing costs. Their adjusted cost basis is $384,000. They sell in 2026 for $825,000, minus $48,000 in selling costs, for a net sale price of $777,000. Their gain is $393,000 — fully covered by the $500,000 married exclusion. They owe nothing on the sale and don’t need to report it. ## Inherited Homes: The Stepped-Up Basis If you inherit a home rather than buying it, your cost basis usually isn’t what the original owner paid — it “steps up” to the home’s fair market value on the date of death. This is separate from the sale exclusion above, but it matters just as much. **Example — David** inherits his mother’s home, originally purchased in 1985 for $95,000. Its fair market value at her death in 2026 is $520,000. David’s basis is $520,000, not $95,000. If he sells shortly after for $530,000, his taxable gain is only $10,000 — even though the home appreciated by well over $400,000 during his mother’s lifetime. ## Multiple Homes and Rental Conversions The exclusion only applies to your main home — the one you live in most of the time. If you own a second home or a rental property, gain on that sale is fully taxable at standard capital gains rates, with no exclusion available. If you’ve converted a former rental into your primary residence (or vice versa), the math gets more complicated — a portion of the gain tied to the rental period may not qualify for the exclusion, and any depreciation you claimed while it was a rental gets recaptured and taxed separately. That’s a case where it’s worth talking to a tax professional before you list the property. ## Where Things Stand in Congress Here’s the part that’s actually moving. The $250,000/$500,000 caps were fixed by the Taxpayer Relief Act of 1997 and have never been adjusted for inflation — while the median home price has roughly tripled since then, to around $415,000 as of late 2025. Three bills are currently sitting in the House Ways and Means Committee: **The No Tax on Home Sales Act**, introduced by Rep. Marjorie Taylor Greene in July 2025, would eliminate the exclusion cap entirely for a primary residence — no $250K or $500K limit, full stop. **The Middle Class Home Tax Elimination Act**, introduced by Rep. Scott Fitzgerald in January 2026, pursues the same full-elimination goal with messaging aimed at middle-class sellers. **The More Homes on the Market Act**, a bipartisan bill, takes a different approach — doubling the caps to roughly $500,000 (single) and $1,000,000 (married) and indexing them to inflation going forward, so they don’t freeze again. Of the three, this is the one tax-policy watchers consider most likely to actually move, since a full repeal carries a much bigger revenue cost. Separately, a group of House Republicans wrote to Treasury Secretary Scott Bessent in March 2026 asking Treasury to index capital gains for inflation by regulation — without needing Congress at all, by redefining how “cost basis” is calculated. That approach is legally contested and would likely face an immediate court challenge if attempted. As of mid-2026, none of this has passed. The exclusion still works exactly as described above. ## Common Issues to Watch Out For **1. Assuming you owe tax you don’t.** Most home sellers never come close to these caps. If your gain is under $250K (single) or $500K (married), none of the legislative back-and-forth changes your tax bill — you already owe nothing. **2. Not tracking capital improvements.** I see this constantly — people forget to save receipts for a new roof or a remodel done a decade ago, then can’t document a higher cost basis when it matters most. **3. Confusing repairs with improvements.** Routine repairs and maintenance (painting, fixing a leaky faucet) don’t add to your basis. Capital improvements that add value or extend the home’s life (a new HVAC system, an addition) do. **4. Missing the partial exclusion for a qualifying move.** If you sold before the 2-year mark due to a job change, health issue, or similar circumstance, don’t assume you get nothing — you likely qualify for a prorated exclusion. **5. Not accounting for depreciation recapture on a converted rental.** If any portion of the home was ever rented out and depreciated, that depreciation gets recaptured and taxed at up to 25%, regardless of the exclusion on the rest of the gain. ## Looking Ahead: 2027 Outlook None of the three bills currently in committee has a clear timeline for a floor vote, and any of them passing before the end of 2026 looks unlikely given the competing revenue and political considerations. The bipartisan More Homes on the Market Act has the best odds longer-term since it’s the cheapest and most defensible version — doubling and indexing rather than eliminating the tax outright. I’ll update this page if any of these bills advance out of committee, and immediately if anything is signed into law. In the meantime, the highest-value thing you can actually do is keep a running record of every capital improvement to your home — that’s real money in your pocket regardless of what Congress does. **Related reading:** - [2025 and 2026 Updates: Capital Gains Tax Rates — Short and Long Term, Tax Loss Harvesting, and NIIT](https://savingtoinvest.com/capital-gains-tax-short-and-long-term-rates-plus-other-factors-to-consider/) - [2026–2027 Year-End Tax Planning: 15 Moves to Make Before December 31](https://savingtoinvest.com/15-year-end-tax-deductions-to-remember-unless-you-want-to-give-the-irs-a-tax-free-loan/) - [Tax Loss Harvesting By Selling Stocks and Lowering Your Taxable Income](https://savingtoinvest.com/tax-loss-harvesting-by-selling-stocks-and-lowering-your-taxable-income/) - [2026-2027 IRS Tax Brackets](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/) Frequently Asked Questions QHow much capital gains can I exclude when I sell my home in 2026? AUp to $250,000 if you're single, or $500,000 if you're married filing jointly, as long as you meet the ownership and use tests. These caps haven't changed since 1997. QWhat are the ownership and use tests for the home sale exclusion? AYou must have owned the home for at least 2 years and lived in it as your main residence for at least 2 years, both within the 5-year period ending on the sale date. The two 2-year periods don't need to be consecutive or overlap fully. QCan I claim the home sale exclusion if I sell before living there 2 years? APossibly a partial exclusion, if the sale was due to a job relocation, health reasons, or another IRS-recognized unforeseen circumstance. The partial exclusion is prorated based on how much of the 2-year requirement you met. QHow often can I use the home sale exclusion? AOnce every 2 years. This limit prevents using the exclusion repeatedly on short-term home flips. QIs Congress going to raise the $250,000/$500,000 home sale exclusion? AThree bills are pending in the House as of mid-2026 - two would eliminate the cap entirely, and a bipartisan bill would double it to $500,000/$1,000,000 and index it to inflation. None has passed yet, so the current caps remain in effect. QWhat happens to my cost basis if I inherit a home? AIt generally 'steps up' to the home's fair market value on the date of the original owner's death, rather than what they originally paid. This can significantly reduce or eliminate taxable gain if you sell soon after inheriting. **Categories:** Real Estate and Mortgages **Tags:** capital gains, home --- ### [Is Crypto a Good Investment? What to Know Before You Buy in 2026](https://savingtoinvest.com/to-crypto-or-not-5-factors-to-consider-before-investing-and-joining-the-cryptocurrency-craze/) **Published:** April 23, 2021 **Author:** Andy **Content:** ### Key Takeaways - Spot Bitcoin and Ethereum ETFs (tickers like IBIT, FBTC, ARKB) now trade on standard brokerages including Fidelity, Schwab, and E\*TRADE - Vanguard is a notable holdout that still doesn't offer them. - U.S. spot Bitcoin ETFs held over $100 billion in combined assets by early 2026, a sign crypto exposure has gone mainstream rather than staying a fringe bet. - Supply mechanics matter: Bitcoin's 21 million coin cap is fundamentally different from tokens with no issuance limit, and that difference drives long-term price behavior more than social media buzz does. - Only invest what you can afford to lose entirely - crypto can lose 70-80% of its value in a single cycle, and some tokens go to zero. - New IRS Form 1099-DA reporting started in 2026, so your broker now reports crypto sales directly to the IRS - treat it like any other taxable investment account. Spot Bitcoin ETFs now trade on Fidelity, Schwab, and E\*TRADE just like a stock — you no longer need a separate crypto exchange account to get exposure. That’s the biggest change since crypto went mainstream, and it’s worth understanding before you put any money in. This is the starting-point guide I point people to before they buy their first crypto: how to research a coin, how to actually buy it in 2026, and how much of your portfolio it’s reasonable to put at risk. If you already own crypto and are trying to decide whether to sell or hold, or want the tax mechanics, I link out to dedicated guides on those below. Covered in this Article: [Toggle](#) - [How to Actually Buy Crypto in 2026](#How_to_Actually_Buy_Crypto_in_2026) - [Research the Coin Before You Buy](#Research_the_Coin_Before_You_Buy) - [How Much Should You Actually Put In?](#How_Much_Should_You_Actually_Put_In) - [Two Examples](#Two_Examples) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) ## How to Actually Buy Crypto in 2026 There are two practical paths now, and which one makes sense depends on what you want. **Through a standard brokerage, via a spot ETF.** If you just want price exposure to Bitcoin or Ethereum without managing wallets or private keys, a spot ETF bought through Fidelity, Schwab, or E\*TRADE works exactly like buying a stock — same account, same 1099 reporting, no separate exchange login. Expense ratios on major spot Bitcoin ETFs run roughly 0.15% to 0.25% annually. **Through a dedicated crypto exchange, if you want the actual coins.** Platforms like [Coinbase](https://savingtoinvest.com/crypto/) let you hold the underlying asset directly, which matters if you want to use it in DeFi, move it between wallets, or hold coins that don’t have an ETF yet. [Robinhood](https://savingtoinvest.com/robinhood/) also supports direct crypto trading alongside stocks in the same account. Either path means you’re responsible for account security and, if you self-custody, your own private keys. Note that this is different from what was true a few years ago — crypto used to be walled off from traditional brokerage accounts entirely. That’s no longer the case for the largest coins. ## Research the Coin Before You Buy Don’t invest based on what’s trending on social media alone. At minimum, understand two things about any coin: what problem it’s actually solving, and what its supply mechanics look like. Bitcoin has a hard-coded 21 million coin limit, which is a core part of its investment case. Many other tokens have no cap at all, which means new supply can dilute existing holders indefinitely — a very different risk profile even if the short-term price action looks similar. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) for updates as crypto tax rules and market structure continue to evolve.* ## How Much Should You Actually Put In? Position sizing matters more than which coin you pick. A common approach: decide on a dollar amount you’re fully prepared to lose completely, and treat anything above that as house money only after you’ve recouped your initial stake. Crypto is genuinely more volatile than most traditional assets — 50% swings in either direction within a year are not unusual. If a 50% drop in this position would meaningfully affect your financial situation, the position is too large. ## Two Examples **Sarah** allocates $2,000 — money she’s already decided she can lose entirely — split across Bitcoin and Ethereum via spot ETFs in her existing brokerage account. She treats it the same way she’d treat a speculative stock position: no leverage, no borrowing to buy more. **Marcus** puts $15,000 into a single low-cap token because a friend said it was “about to explode.” The token loses 90% of its value within four months. Because he’d invested money earmarked for a home down payment, this wasn’t a manageable loss — a sizing mistake, not just a bad pick. ## Common Issues to Watch Out For - **Chasing whatever’s trending.** The coin with the most social media buzz right now is often late-stage momentum, not an early opportunity. - **Assuming “no traditional brokerage access” still applies.** Spot ETFs changed this for major coins — check your existing brokerage before assuming you need a new account. - **Ignoring tax reporting.** Since Form 1099-DA rolled out in 2026, brokers report your crypto sales to the IRS directly. See my [full 1099-DA guide](https://savingtoinvest.com/understanding-the-new-crypto-1099-da-reporting-form/) for what changed and what you owe. Tools like [TurboTax](https://savingtoinvest.com/turbotax/) can import crypto transaction history directly from most exchanges to simplify filing. - **Confusing spot exposure with leveraged products.** Perpetual futures and other leveraged crypto instruments carry very different (and much higher) risk than simply owning the coin — see my [guide to perpetual futures](https://savingtoinvest.com/what-are-perpetual-futures-perps-why-theyre-exploding-and-why-they-could-trigger/) before touching leverage. - **Trusting unsolicited recovery or investment offers.** Crypto scams targeting existing holders are common and convincing — see my [breakdown of a real pig butchering scam](https://savingtoinvest.com/the-high-price-of-trust-unmasking-a-crypto-recovery-pig-butchering-scam/) for how they work. ## Looking Ahead: 2027 Outlook Institutional adoption has been the dominant 2026 story — more ETF products, clearer custody rules, and growing stablecoin frameworks moving through Congress. I expect that trend to continue into 2027, with regulatory clarity likely mattering more to prices than any single piece of news. Watch for further IRS guidance refining Form 1099-DA reporting, and for whether more brokerages beyond Fidelity, Schwab, and E\*TRADE add spot ETF access. I’ll update this page as the landscape shifts — [subscribe here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get notified. **Related reading:** - [Should You Sell or Hold Your Crypto? A Decision Framework That Doesn’t Depend on the Price](https://savingtoinvest.com/should-i-sell-my-crypto-currency-bitcoin-ethereum-dogecoin-now-or-hold-and-buy-more/) - [2026 Crypto Tax Updates: IRS Form 1099-DA Is Here](https://savingtoinvest.com/understanding-the-new-crypto-1099-da-reporting-form/) - [What Are Perpetual Futures (Perps)? Why They’re Booming — and Why They Could Trigger the Next Financial Crisis](https://savingtoinvest.com/what-are-perpetual-futures-perps-why-theyre-exploding-and-why-they-could-trigger/) - [The High Price of Trust: Unmasking a Crypto Recovery Pig Butchering Scam](https://savingtoinvest.com/the-high-price-of-trust-unmasking-a-crypto-recovery-pig-butchering-scam/) Frequently Asked Questions QCan I buy crypto through a regular brokerage account now? AYes, for major coins. Spot Bitcoin and Ethereum ETFs trade on Fidelity, Schwab, and E*TRADE just like stocks. Vanguard is a notable exception that still doesn't offer them. QIs crypto a good investment in 2026? AIt depends on your risk tolerance and time horizon. Crypto remains far more volatile than traditional assets, but institutional adoption and ETF access have made it easier to hold as a small, defined portion of a portfolio. QHow much of my portfolio should be in crypto? AThere's no universal number, but a common approach is to only invest what you're fully prepared to lose entirely, given how volatile crypto can be. QDo I have to pay taxes on crypto gains? AYes. Crypto is treated as property by the IRS, and starting in 2026, brokers report sales directly via Form 1099-DA - the same as they would for stock sales. QWhat's the difference between buying a spot ETF and buying crypto directly on an exchange? AA spot ETF gives you price exposure through your existing brokerage with no wallet management. Buying directly on an exchange like Coinbase gives you the actual coins, which you can move, use in DeFi, or self-custody - but you're responsible for securing them. QIs Bitcoin's fixed supply actually meaningful? AYes - Bitcoin's 21 million coin cap is a structural difference from tokens with unlimited issuance, and it's a core part of the long-term investment case many analysts cite. **Categories:** Government Rebates and Payments --- ### [Still Waiting on “Your Tax Return Has Not Been Processed”? Here's What Actually Happens Next](https://savingtoinvest.com/your-tax-return-is-not-processed/) **Published:** February 20, 2023 **Author:** Andy **Content:** ### Key Takeaways - 'Your tax return has not yet been processed' is a normal WMR status, not an error - it means the IRS hasn't finished processing yet. - The IRS's own benchmark is 21 days for e-filed returns; there's generally no reason to worry before that window closes. - If your return includes the EITC or ACTC, it's also subject to the PATH Act hold, which adds its own timeline separate from general processing delays. - Codes 570 or 898 on your transcript typically mean your return needs extra review - this delays your refund but does not automatically mean you're being audited. - If it's been more than 21 business days with no movement, your return has likely been pulled for additional manual review. Seeing “Your tax return has not yet been processed” on the IRS’s Where’s My Refund (WMR) tool is unsettling, but it’s also one of the most common status messages during filing season. It simply means the IRS hasn’t finished working through your return yet — not that something is wrong. I get a lot of questions about this message every year, especially from early filers who expected a faster turnaround. Below is why it shows up, how long is actually normal, and what your options are if the wait drags on. Covered in this Article: [Toggle](#) - [Why You’re Still Seeing This Message](#Why_Youre_Still_Seeing_This_Message) - [What Options Do I Have?](#What_Options_Do_I_Have) - [Am I Under Audit?](#Am_I_Under_Audit) - [Two Examples](#Two_Examples) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027 Filing Season](#Looking_Ahead_2027_Filing_Season) ## Why You’re Still Seeing This Message The IRS processes returns in batches, and backlogs or staffing shortages can push your return past the typical timeline even if nothing is wrong with it. Unless it’s been more than 21 days since you e-filed and got IRS confirmation of receipt, there’s no reason to be concerned yet. Once your return is assigned a processing batch (tied to your IRS cycle code), your transcript typically populates overnight, along with a refund date if everything is routine. If you claimed the EITC or ACTC, factor in the [PATH Act hold](https://savingtoinvest.com/2026-path-refund-status-irs-release-dates-confirmed/) on top of normal processing — that’s a separate timeline from general backlog delays. On WMR, you may also see your status change to fewer or no bars while the IRS is reviewing your return, sometimes replaced by specific instructions or information about what’s happening. For a full breakdown of what your transcript can tell you that WMR can’t, see my [transcript N/A guide](https://savingtoinvest.com/will-ordering-an-irs-tax-transcript-help-me-find-out-when-ill-get-my-refund/). If your return has errors or adjustments — commonly flagged by [code 570](https://savingtoinvest.com/what-is-tax-code-tc-570-on-my-irs-transcript-and-will-it-delay-my-refund-account-freeze-or-additional-account-actions-pending/) or code 898 on your transcript — processing takes longer, even after the PATH Act hold lifts. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) for updates as this year’s processing patterns develop.* ## What Options Do I Have? You can call the IRS’s automated refund hotline at 800-829-1954, though if your return isn’t processed yet, it will simply confirm that. This line only covers your current-year refund status. If it’s been more than 21 days or you need help urgently, call the IRS general taxpayer line at 1-800-829-1040. Wait times can be long — calling early or late in the day, or on Tuesdays or Thursdays, tends to improve your odds of reaching someone. If you receive a formal IRS notice requesting information, don’t ignore it. These letters usually include a dedicated phone number that’s different from the general line, and using it is the fastest way to keep your return moving. See my [guide to IRS notices and letters](https://savingtoinvest.com/should-i-be-worried-if-i-get-an-irs-notice-or-letter-will-it-affect-my-tax-return-processing-or-refund-payment/) for what different notice types mean. ## Am I Under Audit? If it’s been more than 21 business days and you’re still seeing “not yet processed,” your return has likely been pulled for additional checks because the IRS’s systems couldn’t automatically verify something you reported. That delays your refund, but it does not necessarily mean you’re facing a full [audit](https://savingtoinvest.com/tax-codes-420-and-424-on-my-irs-transcript-with-notice-cp75-is-my-return-under-audit-and-will-it-delay-my-refund-payment/). Often, on further review, the IRS makes an automatic adjustment — up or down — based on information it already has, and mails you a notice explaining the change along with appeal instructions. Be ready to respond promptly to any further IRS inquiries, since those typically arrive by mail first, and slow responses only add more delay. ## Two Examples **Jordan** e-filed on February 3 and still sees “not yet processed” on February 19 — day 16. Nothing to do here yet; he’s inside the IRS’s normal 21-day window, and most returns clear before it closes. **Renee** e-filed February 1 and, by March 5 (day 32), still has no movement and no transcript update. She calls the IRS general line and learns a notice is being mailed — her return was flagged for income verification, which is common and doesn’t mean she did anything wrong. ## Common Issues to Watch Out For - **Panicking before day 21.** The IRS’s own benchmark is 21 days for e-filed returns — checking daily before that window closes just adds stress without new information. - **Confusing PATH Act delays with processing problems.** If you claimed the EITC or ACTC, part of your wait is a statutory hold, not a sign of an issue with your return. - **Ignoring an IRS notice because it “looks like spam.”** Real IRS notices arrive by mail, include a specific notice number, and often have their own callback line — don’t set them aside. - **Assuming a manual review means an audit.** Most reviews end in a routine adjustment notice, not a full audit. - **Calling the automated refund line after 21 days expecting new information.** Once you’re past the normal window, the general taxpayer line is more useful than the automated hotline. ## Looking Ahead: 2027 Filing Season The 21-day e-file processing benchmark and PATH Act hold are permanent features of how the IRS operates, so expect the same general pattern for returns filed in 2027. What tends to shift year to year is how backed up the IRS is early in the season — a government shutdown, new legislation requiring system updates, or a particularly complex tax-law change can all push actual processing times past the 21-day target even for simple returns. I’ll keep this page updated with the latest processing-time reports as the 2027 season develops — [subscribe here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get notified. **Related reading:** - [Refund Status: Return Processing Delayed Beyond the Normal Timeframe](https://savingtoinvest.com/refund-status-return-processing-has-been-delayed-beyond-the-normal-timeframe/) - [2026 PATH Refund Status & IRS Release Dates Confirmed](https://savingtoinvest.com/2026-path-refund-status-irs-release-dates-confirmed/) - [2026–2027 IRS Tax Refund Schedule and Direct Deposit Payment Calendar](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) - [Will Ordering an IRS Tax Transcript Help Me Find Out When I’ll Get My Refund?](https://savingtoinvest.com/will-ordering-an-irs-tax-transcript-help-me-find-out-when-ill-get-my-refund/) Frequently Asked Questions QHow long is normal for 'Your tax return has not yet been processed' to show? AThe IRS's benchmark is 21 days for e-filed returns. There's generally no reason to worry before that window closes. QDoes this message mean something is wrong with my return? ANot necessarily. It usually just means the IRS hasn't finished processing yet, especially during high-volume periods of filing season. QWhy is my refund taking longer if I claimed the EITC or Child Tax Credit? AThose credits are subject to the PATH Act, a separate statutory hold that delays refunds until at least mid-February regardless of when you filed. QWhat should I do if it's been more than 21 days? ACall the IRS general taxpayer line at 1-800-829-1040. Calling early or late in the day, or on Tuesdays or Thursdays, tends to improve your odds of reaching someone. QDoes a delay past 21 days mean I'm being audited? ANot automatically. It usually means your return was pulled for additional verification, which often ends in a routine adjustment notice rather than a full audit. QI got a letter from the IRS - should I be worried? ADon't ignore it, but don't panic either. Use the specific phone number or instructions on the letter itself, since it's often different from the general IRS line. **Categories:** Taxes and Retirement --- ### [How to Read Your IRS Transcript: Codes 150, 806, 766, and 846 Explained With Examples](https://savingtoinvest.com/using-your-irs-transcript-to-get-your-tax-return-and-refund-processing-status-and-key-dates/) **Published:** February 13, 2022 **Author:** Andy **Content:** ### Key Takeaways - Code 150 shows your total tax liability for the year - $0 means you owe nothing beyond what's already been withheld or credited. - Code 806 shows your federal withholding; a negative number here is money coming back to you as part of your refund. - Code 846 (Refund Issued) is the line that confirms your actual refund date - this is the one code that matters most if you're just trying to find out when you'll be paid. - Codes 570 and 898 relate to holds and offsets that can reduce or delay your refund; code 971 usually means the IRS mailed you a notice explaining what's going on. - Not every transcript line is refund-relevant - some are purely internal IRS processing markers, and learning to tell the difference saves a lot of unnecessary worry. Your IRS tax transcript is one of the most useful documents you can pull when you’re waiting on a refund — especially once Where’s My Refund (WMR) and IRS2Go stop giving you anything beyond a generic status bar. The catch is that transcripts are dense: rows of three-digit codes, dollar amounts, and dates that don’t mean much without context. This is a line-by-line guide to the codes that show up most often, using two real (anonymized) transcript examples so you can match what you’re seeing to what it actually means. For how the IRS’s “processing date” differs from your actual refund date, see my companion post on [processing date vs. code 846](https://savingtoinvest.com/processing-dates-to-get-my-refund-payment-dates/). Covered in this Article: [Toggle](#) - [Example 1: A Standard Refund Transcript](#Example_1_A_Standard_Refund_Transcript) - [Example 2: Understanding the Processing Date](#Example_2_Understanding_the_Processing_Date) - [What About Codes 570, 898, and 971?](#What_About_Codes_570_898_and_971) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027 Filing Season](#Looking_Ahead_2027_Filing_Season) ## Example 1: A Standard Refund Transcript In a typical transcript, you’ll see a handful of core codes stacked near the top of your account activity. Here’s what each one means: - **Code 150 (Tax Return Filed)** — this is your total tax liability based on the return you filed. If it shows $0, you have no additional tax liability beyond your withholding and credits. - **[Code 806](https://savingtoinvest.com/what-does-irs-code-806-mean-on-my-tax-transcript/) (W-2 or 1099 Withholding)** — this is your federal withholding from paychecks or other income. It shows as a negative number because it’s money already paid in on your behalf. - **Codes 766 and 768 (Credits)** — these represent refundable credits like the Additional Child Tax Credit or Earned Income Tax Credit, also shown as negative numbers since they add to your refund. To find your refund amount: add up the negative (credit/withholding) lines, then subtract your code 150 liability. Once [code 846 (Refund Issued)](https://savingtoinvest.com/code-846-refund-issued-on-your-irs-tax-transcript-what-it-means-for-your-direct-deposit-or-paper-check-refund-payment/) appears, that’s your confirmation — the amount and date next to it are what’s actually being paid, and your WMR/IRS2Go status will move to “Refund Sent” around the same time. ## Example 2: Understanding the Processing Date A second common point of confusion is the “processing date” listed on the transcript, separate from any of the numbered transaction codes. This date ties back to your IRS cycle code and represents the next date the IRS expects to take some action on your account — not necessarily your refund date. If the IRS finishes processing your return by that date, it may line up with your refund date. But that’s not guaranteed, and I cover the full distinction — plus what today’s PATH Act refund pattern looks like — in my [processing date vs. refund date guide](https://savingtoinvest.com/processing-dates-to-get-my-refund-payment-dates/). *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) for updates when new transcript-related codes or IRS system changes come up.* ## What About Codes 570, 898, and 971? These three codes come up constantly in reader questions, usually from people whose refund seems stuck: - **[Code 570](https://savingtoinvest.com/what-is-tax-code-tc-570-on-my-irs-transcript-and-will-it-delay-my-refund-account-freeze-or-additional-account-actions-pending/) (Additional Account Action Pending)** — a hold on your account, often triggered by a mismatch in reported income, a credit under review, or an identity-verification flag. - **[Code 898](https://savingtoinvest.com/irs-refund-adjustments-and-treasury-bfs-offsets-tax-topic-codes-203-598-or-898/) (Refund Applied to Non-IRS Debt)** — your refund (or part of it) was redirected through the Treasury Offset Program to cover a past-due debt, such as defaulted student loans, back child support, or a state tax debt. - **Code 971 (Notice Issued)** — the IRS mailed you a letter, usually explaining what’s happening with codes like 570 or requesting additional information. Seeing 570 and 971 together generally means the IRS is reviewing something specific and will follow up by mail. It’s not a denial — it’s a pause while the IRS resolves whatever triggered the hold. ## Common Issues to Watch Out For - **Assuming every code is refund-related.** Many transcript lines are internal IRS bookkeeping and don’t affect your refund at all — 846, 570, 898, and 971 are the ones that actually matter for refund status. - **Misreading negative numbers as bad news.** On a transcript, negative amounts next to withholding and credit codes are good — they’re money coming back to you. - **Expecting an exact refund date before 846 posts.** Nothing before code 846 is a confirmed refund date, no matter how complete your transcript looks otherwise. - **Not checking for a 971 notice when 570 appears.** The notice usually explains exactly what the IRS needs, which can save you a call to the IRS. - **Confusing your transcript’s cycle code with your refund date.** The cycle code tells you your update schedule (daily or weekly), not when you’ll be paid. ## Looking Ahead: 2027 Filing Season These transcript codes are stable year to year — the IRS doesn’t typically change its core transaction code system, so this guide should hold up for the 2027 filing season and beyond. What does change annually is the PATH Act’s specific hold and release dates, which I update each year once the IRS confirms them. **Related reading:** - [Processing Date vs. Refund Date on Your IRS Transcript](https://savingtoinvest.com/processing-dates-to-get-my-refund-payment-dates/) - [2026 PATH Refund Status & IRS Release Dates Confirmed](https://savingtoinvest.com/2026-path-refund-status-irs-release-dates-confirmed/) - [2026–2027 IRS Tax Refund Schedule and Direct Deposit Payment Calendar](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) - [Will Ordering an IRS Tax Transcript Help Me Find Out When I’ll Get My Refund?](https://savingtoinvest.com/will-ordering-an-irs-tax-transcript-help-me-find-out-when-ill-get-my-refund/) Frequently Asked Questions QWhat does code 150 mean on my IRS transcript? ACode 150 shows your total tax liability for the year based on the return you filed. A $0 amount means you owe nothing beyond what's already covered by withholding and credits. QWhat does code 846 mean and why does it matter most? ACode 846 (Refund Issued) is the line that confirms your actual refund amount and date. It's the single most important code if you're trying to find out when you'll be paid. QWhat's the difference between codes 570 and 971? ACode 570 places a hold on your account for review. Code 971 means the IRS mailed you a notice, often explaining the reason behind a 570 hold or requesting more information. QWhat does code 898 mean on my transcript? ACode 898 means some or all of your refund was redirected through the Treasury Offset Program to pay a past-due debt, such as defaulted student loans or back child support. QIs the processing date the same as my refund date? ANo. The processing date is the IRS's estimate of its next account action, not a confirmed refund date. Only code 846 confirms your actual refund date. QWhy do negative numbers appear next to some transcript codes? ANegative amounts next to codes like 806 (withholding) or 766/768 (credits) represent money being applied toward your refund - they're a good sign, not an error. **Categories:** Taxes and Retirement --- ### [2026-2027 IRS Cycle Code Calendar Chart – Using Your Tax Transcript to Get Refund Processing Updates and Direct Deposit Dates](https://savingtoinvest.com/irs-refund-cycle-code-and-dates-using-tax-transcript-to-get-master-file-information-for-your-direct-deposit-date/) **Published:** February 8, 2022 **Author:** Andy **Content:** ### Key Takeaways - Your IRS cycle code is an 8-digit number (YYYYWWDD) found next to Code 150 on your tax transcript, and it tells you when your return posted to the IRS Master File. - Daily accounts (codes ending in 01-04) post Friday through Wednesday; weekly accounts (code 05) post on Thursdays, since the IRS master file's weekly cycle starts on Friday, not Monday. - Code 846 (Refund Issued) combined with your cycle code gives the most reliable DIY estimate of your direct deposit date - generally the business day after your cycle's processing date. - The main table above runs through December 2026 for tax year 2025 returns; see 'Looking Ahead: 2027' for how cycle codes will look once 2026-prefixed codes start appearing in the 2027 filing season. - Your cycle code can shift mid-season through IRS resequencing - this usually signals a delay, not an error, and will push your refund out by one or more cycles. **\[UPDATED chart for 2026 & 2027**\] Every tax season there is a guessing game played by millions of American taxpayers on when they will get their refund payment deposited into their bank account. There is the so-called [IRS refund schedule](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings "IRS refund schedule"), which has estimated dates for when the agency will make refund deposits to bank accounts or send out mailed checks. But this is just an estimate and does not account for processing delays, statutory limitations (e.g [PATH act](https://savingtoinvest.com/tax-refund-payment-delays-likely-according-to-the-irs/ "PATH Act")) and other reasons [refunds could get delayed](https://savingtoinvest.com/no-tax-refund-after-21-days-tips-on-contacting-the-irs "refunds are delayed") beyond the normal processing schedule. So another way to get your estimated refund date is to check your [IRS tax transcript](https://savingtoinvest.com/will-ordering-an-irs-tax-transcript-help-me-find-out-when-ill-get-my-refund/ "IRS tax transcript") (free from your IRS account) that shows what is called a “**cycle code.**” This is an *eight-digit number* that indicates when your tax return posted to the IRS Master File (IMF). The cycle code is updated regularly and when combined with [tax transaction codes ](https://savingtoinvest.com/irs-tax-topic-error-codes-on-where-is-my-refund-wmr-and-irs2go/ "tax topic code")on your IRS transcript, can provide insight into your tax refund status (including [amended returns](https://savingtoinvest.com/wheres-my-amended-tax-return-and-when-will-i-get-my-refund/ "Where is My Amended Tax Return and When Will I get My Refund? 2022 Payment Status and Ongoing Delays")), processing stages and potential direct deposit date. A full table of **2026 cycle codes and calendar dates** is shown below, along with a **2027 look-ahead table** for the next filing season. Leave a comment with any questions and [subscribe (free)](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/ "subscribe (free)") to get the latest updates. Covered in this Article: [Toggle](#) - [What does the transcript cycle code mean?](#What_does_the_transcript_cycle_code_mean) - [How do I find and interpret my IRS Cycle Code?](#How_do_I_find_and_interpret_my_IRS_Cycle_Code) - [Weekly vs Daily processing cycles](#Weekly_vs_Daily_processing_cycles) - [Refund direct deposit date (with Code 846) via cycle code](#Refund_direct_deposit_date_with_Code_846_via_cycle_code) - [2026 Updated IRS Cycle Codes and Calendar Dates Table](#2026_Updated_IRS_Cycle_Codes_and_Calendar_Dates_Table) - [Looking Ahead: 2027 Cycle Codes and Calendar Dates](#Looking_Ahead_2027_Cycle_Codes_and_Calendar_Dates) ### What does the transcript cycle code mean? The tax transcript cycle code means your return has been submitted to the IRS master file (IMF) and generally means that your filed tax return is under processing ([code 152](https://savingtoinvest.com/what-does-irs-tax-topic-code-152-mean-for-my-refund-payment/ "What Does IRS Tax Topic Code 152 Mean For My Refund Payment and Processing Delays Beyond Normal IRS Timeframe?")) by the IRS. But remember, the cycle code and tax topic code need to be used together to figure your return or refund status given they change during the IRS processing cycle. You will need to wait for the [846 code](https://savingtoinvest.com/code-846-refund-issued-on-your-irs-tax-transcript-what-it-means-for-your-direct-deposit-or-paper-check-refund-payment/ "Code 846 Refund Issued on Your IRS Tax Transcript – What It Means For Your Direct Deposit or Paper Check Refund Payment") (refund issued) to show on your transcript. This means the IRS has processed your return and your estimated direct deposit date (DDD) has been determined. See section below for more details on this code. The IRS can and does **update cycle codes** and dates regularly and are pretty careful about disclosing specific details given issues in past tax years. However, we do know the IRS updates returns in batches/cycles and your IRS cycle code tells you which batch you are in and whether your transcript tax return information is updated on a daily or weekly basis. **[Get the latest money, tax and stimulus news directly in your inbox](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/ "Subscribe via Email")** ### How do I find and interpret my IRS Cycle Code? You will need to get access to your (free) [official IRS transcript](https://savingtoinvest.com/getting-a-free-copy-of-your-irs-tax-return-information-form-4506t-irs-tax-transcript/ "official IRS transcript"). Once you have that look for the cycle date per the image below. It will be an 8-digit number that looks something like this: *2025*0603 The cycle is interpreted as follows: **(YEAR)(WEEK OF YEAR)(DAY OF WEEK)** ![IRS Cycle Code example and where to find it on your tax transcript and What It Means](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2022/02/image-41.png?resize=820%2C227&ssl=1)IRS Cycle Code on your Tax Transcript **2025 \[First four digits\]** – This is the tax processing year. 2025 in this example shown above. **06 \[Digits 5 and 6\] – This is the week of year**. So 06 means the 6th calendar week of the year. Months are not a factor here. Get a calendar out and count the weeks to determine this (a week goes Monday to Sunday). So Jan 3rd, 2022 to Jan 9th 2022 is Week 1, January 24th to January 30th is Week 4, February 7th to 13th is Week 6. Or just refer to the IRS cycle code interpretation table below. **03 \[Digits 7 and 8\]** – **This is the “day of the week”** for your IRS Account and when it posts to the IRS master file (IMF). Posting is classified as either being updated weekly or daily. Cycle codes ending in 01, 02, 03, 04 are daily accounts. Cycle codes ending in 05 are generally **weekly (processed) accounts.** Note the IRS weekly processing starts on a Friday, not a Monday. I know, it’s strange, but that’s what it is. There are 4 **daily** processing days per week (includes transcript and WMR/IRS2Go updates). So 01 = Friday, 02 = Monday, 03 = Tuesday, 04 = Wednesday, and 05 = Thursday, which is generally reserved for weekly processing. So **03** in the example above means this is a “daily” posted account and the posting to the IMF (IRS master file) will generally occur on Tuesday. So using the example above, 20250603 cycle date is equivalent to a calendar date of Tuesday, February 4th, 2025. It means your return was successfully filed and you are in a **daily batch cycle**. There is also an estimated [processing date ](https://savingtoinvest.com/processing-dates-to-get-my-refund-payment-dates/ "Processing Date and Transcript Cycle Codes For 2023 Refund Payment Direct Deposit With PATH lifted")of Feb 24th noted in the transcript image above. ### Weekly vs Daily processing cycles While [WMR/IRS2Go](https://savingtoinvest.com/wmr-and-irs2go-status-differences-return-received-accepted-or-under-review-and-refund-approved-versus-refund-sent/ "WMR/IRS2Go") and your transcript can update any day, they generally have major updates once a week and aligned to your cycle. As [detailed in this article](https://savingtoinvest.com/when-does-the-irs-update-my-refund-status-on-wmr-irs2go-and-tax-return-details-on-my-transcript/ "detailed in this article"), major WMR status updates for daily accounts (cycle codes 01 to 04) usually occur on **Wednesdays**; and major status updates on weekly (05 cycle code) accounts are generally on **Saturdays**. Mass transcript updates for those with daily accounts (in the IRS Master File) are usually on **Tuesdays**; while those with weekly processed accounts generally see major updates on **on Fridays**. You can see [more in this video](https://youtu.be/zlEGvQ8MtSY "more in this video"). Note that your cycle code can also change during a tax season (e.g. you from from daily to weekly) through **resequencing** of your tax return in the IRS master file. This will result in your tax return being pushed out one or more cycles (and likely result in a delayed refund). ### Refund direct deposit date (with Code 846) via cycle code When you see the **IRS code 846 (refund of overpayment)** on your transcript it means a refund has been issued. This is when you can use the cycle code to get an estimated payment date for your refund. It will generally be the day after your “day of the week” cycle code. So if you are on a Tuesday daily cycle, your refund will likely hit your account on a Wednesday. Paper checks will take 5 to 7 days longer. I have seen cases, due to processing backlogs, where the actual refund deposit (transaction date) into your bank account or financial card could happen 2 to 3 days after your cycle date. Don’t get too stressed if you’re a couple of days off. This has been happening a lot in the last few years! ### 2026 Updated IRS Cycle Codes and Calendar Dates Table The table below shows the current tax season IRS cycle codes with calendar date conversion. You can use your browser’s find function (Ctrl+F or Cmd+F) to search for your cycle code in the table below. You can also use our [Refund Decoder](https://savingtoinvest.com/irs-cycle-code-decoder-refund-date-estimator/) to get your calendar date. Remember your transcript cycle code can update/change through out the tax season as your tax return is processed. Cycle Code2026 Date20250102Monday, December 29, 202520250103Tuesday, December 30, 202520250104Wednesday, December 31, 202520250105Thursday, January 1, 202620250201Friday, January 2, 202620250202Monday, January 5, 202620250204Tuesday, January 6, 202620250204Wednesday, January 7, 202620250205Thursday, January 8, 202620250301Friday, January 9, 202620250302Monday, January 12, 202620250303Tuesday, January 13, 202620250304Wednesday, January 14, 202620250305Thursday, January 15, 202620250401Friday, January 16, 202620250402Monday, January 19, 202620250403Tuesday, January 20, 202620250404Wednesday, January 21, 202620250405Thursday, January 22, 202620250501Friday, January 23, 202620250502Monday, January 26, 202620250503Tuesday, January 27, 202620250504Wednesday, January 28, 202620250505Thursday, January 29, 202620250601Friday, January 30, 2026 Cycle Code2026 Date20250602Monday, February 2, 202620250603Tuesday, February 3, 202620250604Wednesday, February 4, 202620250605Thursday, February 5, 202620250701Friday, February 6, 202620250702Monday, February 9, 202620250703Tuesday, February 10, 202620250704Wednesday, February 11, 202620250705Thursday, February 12, 202620250801Friday, February 13, 202620250802Monday, February 16, 202620250803Tuesday, February 17, 202620250804Wednesday, February 18, 202620250805Thursday, February 19, 202620250901Friday, February 20, 202620250902Monday, February 23, 202620250903Tuesday, February 24, 202620250904Wednesday, February 25, 202620250905Thursday, February 26, 202620251001Friday, February 27, 202620251002Monday, March 2, 202620251003Tuesday, March 3, 202620251004Wednesday, March 4, 202620251005Thursday, March 5, 202620251101Friday, March 6, 2026 Cycle Code2026 Date20251102Monday, March 9, 202620251103Tuesday, March 10, 202620251104Wednesday, March 11, 202620251105Thursday, March 12, 202620251201Friday, March 13, 202620251202Monday, March 16, 202620251203Tuesday, March 17, 202620251204Wednesday, March 18, 202620251205Thursday, March 19, 202620251301Friday, March 20, 202620251302Monday, March 23, 202620251303Tuesday, March 24, 202620251304Wednesday, March 25, 202620251305Thursday, March 26, 202620251401Friday, March 27, 202620251402Monday, March 30, 202620251403Tuesday, March 31, 202620251404Wednesday, April 1, 202620251405Thursday, April 2, 202620251501Friday, April 3, 202620251502Monday, April 6, 202620251503Tuesday, April 7, 202620251504Wednesday, April 8, 202620251505Thursday, April 9, 202620251601Friday, April 10, 2026 Cycle Code2026 Date20251602Monday, April 13, 202620251603Tuesday, April 14, 202620251604Wednesday, April 15, 202620251605Thursday, April 16, 202620251701Friday, April 17, 202620251702Monday, April 20, 202620251703Tuesday, April 21, 202620251704Wednesday, April 22, 202620251705Thursday, April 23, 202620251801Friday, April 24, 202620251802Monday, April 27, 202620251803Tuesday, April 28, 202620251804Wednesday, April 29, 202620251805Thursday, April 30, 202620251901Friday, May 1, 202620251902Monday, May 4, 202620251903Tuesday, May 5, 202620251904Wednesday, May 6, 202620251905Thursday, May 7, 202620252001Friday, May 8, 202620252002Monday, May 11, 202620252003Tuesday, May 12, 202620252004Wednesday, May 13, 202620252005Thursday, May 14, 202620252101Friday, May 15, 2026 Cycle Code2026 Date20252102Monday, May 18, 202620252103Tuesday, May 19, 202620252104Wednesday, May 20, 202620252105Thursday, May 21, 202620252201Friday, May 22, 202620252202Monday, May 25, 202620252203Tuesday, May 26, 202620252204Wednesday, May 27, 202620252205Thursday, May 28, 202620252301Friday, May 29, 202620252302Monday, June 1, 202620252303Tuesday, June 2, 202620252304Wednesday, June 3, 202620252305Thursday, June 4, 202620252401Friday, June 5, 202620252402Monday, June 8, 202620252403Tuesday, June 9, 202620252404Wednesday, June 10, 202620252405Thursday, June 11, 202620252501Friday, June 12, 202620252502Monday, June 15, 202620252503Tuesday, June 16, 202620252504Wednesday, June 17, 202620252505Thursday, June 18, 202620252601Friday, June 19, 2026 Cycle Code2026 Date20252602Monday, June 22, 202620252603Tuesday, June 23, 202620252604Wednesday, June 24, 202620252605Thursday, June 25, 202620252701Friday, June 26, 202620252702Monday, June 29, 202620252703Tuesday, June 30, 202620252704Wednesday, July 1, 202620252705Thursday, July 2, 202620252801Friday, July 3, 202620252802Monday, July 6, 202620252803Tuesday, July 7, 202620252804Wednesday, July 8, 202620252805Thursday, July 9, 202620252901Friday, July 10, 202620252902Monday, July 13, 202620252903Tuesday, July 14, 202620252904Wednesday, July 15, 202620252905Thursday, July 16, 202620253001Friday, July 17, 202620253002Monday, July 20, 202620253003Tuesday, July 21, 202620253004Wednesday, July 22, 202620253005Thursday, July 23, 202620253101Friday, July 24, 2026 Cycle Code2026 Date20253102Monday, July 27, 202620253103Tuesday, July 28, 202620253104Wednesday, July 29, 202620253105Thursday, July 30, 202620253201Friday, July 31, 202620253202Monday, August 3, 202620253203Tuesday, August 4, 202620253204Wednesday, August 5, 202620253205Thursday, August 6, 202620253301Friday, August 7, 202620253302Monday, August 10, 202620253303Tuesday, August 11, 202620253304Wednesday, August 12, 202620253305Thursday, August 13, 202620253401Friday, August 14, 202620253402Monday, August 17, 202620253403Tuesday, August 18, 202620253404Wednesday, August 19, 202620253405Thursday, August 20, 202620253501Friday, August 21, 202620253502Monday, August 24, 202620253503Tuesday, August 25, 202620253504Wednesday, August 26, 202620253505Thursday, August 27, 202620253601Friday, August 28, 2026 Cycle Code2026 Date20253602Monday, August 31, 202620253603Tuesday, September 1, 202620253604Wednesday, September 2, 202620253605Thursday, September 3, 202620253701Friday, September 4, 202620253702Monday, September 7, 202620253703Tuesday, September 8, 202620253704Wednesday, September 9, 202620253705Thursday, September 10, 202620253801Friday, September 11, 202620253802Monday, September 14, 202620253803Tuesday, September 15, 202620253804Wednesday, September 16, 202620253805Thursday, September 17, 202620253901Friday, September 18, 202620253902Monday, September 21, 202620253903Tuesday, September 22, 202620253904Wednesday, September 23, 202620253905Thursday, September 24, 202620254001Friday, September 25, 202620254002Monday, September 28, 202620254003Tuesday, September 29, 202620254004Wednesday, September 30, 202620254005Thursday, October 1, 202620254101Friday, October 2, 2026 Cycle Code2026 Date20254102Monday, October 5, 202620254103Tuesday, October 6, 202620254104Wednesday, October 7, 202620254105Thursday, October 8, 202620254201Friday, October 9, 202620254202Monday, October 12, 202620254203Tuesday, October 13, 202620254204Wednesday, October 14, 202620254205Thursday, October 15, 202620254301Friday, October 16, 202620254302Monday, October 19, 202620254303Tuesday, October 20, 202620254304Wednesday, October 21, 202620254305Thursday, October 22, 202620254401Friday, October 23, 202620254402Monday, October 26, 202620254403Tuesday, October 27, 202620254404Wednesday, October 28, 202620254405Thursday, October 29, 202620254501Friday, October 30, 202620254502Monday, November 2, 202620254503Tuesday, November 3, 202620254504Wednesday, November 4, 202620254505Thursday, November 5, 202620254601Friday, November 6, 2026 Cycle Code2026 Date20254602Monday, November 9, 202620254603Tuesday, November 10, 202620254604Wednesday, November 11, 202620254605Thursday, November 12, 202620254701Friday, November 13, 202620254702Monday, November 16, 202620254703Tuesday, November 17, 202620254704Wednesday, November 18, 202620254705Thursday, November 19, 202620254801Friday, November 20, 202620254802Monday, November 23, 202620254803Tuesday, November 24, 202620254804Wednesday, November 25, 202620254805Thursday, November 26, 202620254901Friday, November 27, 202620254902Monday, November 30, 202620254903Tuesday, December 1, 202620254904Wednesday, December 2, 202620254905Thursday, December 3, 202620255001Friday, December 4, 202620255002Monday, December 7, 202620255003Tuesday, December 8, 202620255004Wednesday, December 9, 202620255005Thursday, December 10, 202620255101Friday, December 11, 2026 Cycle Code2026 Date20255102Monday, December 14, 202620255103Tuesday, December 15, 202620255104Wednesday, December 16, 202620255105Thursday, December 17, 202620255201Friday, December 18, 202620255202Monday, December 21, 202620255203Tuesday, December 22, 202620255204Wednesday, December 23, 202620255205Thursday, December 24, 202620255301Friday, December 25, 202620255302Monday, December 28, 2026 Showing 25 cycle codes per column — scroll right for more weeks. ### Looking Ahead: 2027 Cycle Codes and Calendar Dates The table above covers **tax year 2025** cycle codes (prefix **2025**), which is what you will see on transcripts during the 2026 filing season. Once the next filing season opens in January 2027, the IRS will start assigning cycle codes with a **2026** prefix — these are for tax year 2026 returns (the ones you will file in the 2027 filing season). The interpretation rules do not change: it is still **(YEAR)(WEEK OF YEAR)(DAY OF WEEK)**, and the master file’s Friday-start weekly cycle carries over unchanged — 01 = Friday, 02 = Monday, 03 = Tuesday, 04 = Wednesday, and 05 = Thursday for weekly accounts. Only the first four digits move from 2025 to 2026, and the week count restarts at 01. Use your browser’s find function (Ctrl+F or Cmd+F), or scroll across the table below, once you start seeing 2026-prefixed cycle codes on your transcript, to convert them into a calendar processing date. You can also use our [Refund Decoder](https://savingtoinvest.com/irs-cycle-code-decoder-refund-date-estimator/) to get your calendar date. Cycle Code2027 Date20260101Friday, December 25, 202620260102Monday, December 28, 202620260103Tuesday, December 29, 202620260104Wednesday, December 30, 202620260105Thursday, December 31, 202620260201Friday, January 1, 202720260202Monday, January 4, 202720260203Tuesday, January 5, 202720260204Wednesday, January 6, 202720260205Thursday, January 7, 202720260301Friday, January 8, 202720260302Monday, January 11, 202720260303Tuesday, January 12, 202720260304Wednesday, January 13, 202720260305Thursday, January 14, 202720260401Friday, January 15, 202720260402Monday, January 18, 202720260403Tuesday, January 19, 202720260404Wednesday, January 20, 202720260405Thursday, January 21, 202720260501Friday, January 22, 202720260502Monday, January 25, 202720260503Tuesday, January 26, 202720260504Wednesday, January 27, 202720260505Thursday, January 28, 2027 Cycle Code2027 Date20260601Friday, January 29, 202720260602Monday, February 1, 202720260603Tuesday, February 2, 202720260604Wednesday, February 3, 202720260605Thursday, February 4, 202720260701Friday, February 5, 202720260702Monday, February 8, 202720260703Tuesday, February 9, 202720260704Wednesday, February 10, 202720260705Thursday, February 11, 202720260801Friday, February 12, 202720260802Monday, February 15, 202720260803Tuesday, February 16, 202720260804Wednesday, February 17, 202720260805Thursday, February 18, 202720260901Friday, February 19, 202720260902Monday, February 22, 202720260903Tuesday, February 23, 202720260904Wednesday, February 24, 202720260905Thursday, February 25, 202720261001Friday, February 26, 202720261002Monday, March 1, 202720261003Tuesday, March 2, 202720261004Wednesday, March 3, 202720261005Thursday, March 4, 2027 Cycle Code2027 Date20261101Friday, March 5, 202720261102Monday, March 8, 202720261103Tuesday, March 9, 202720261104Wednesday, March 10, 202720261105Thursday, March 11, 202720261201Friday, March 12, 202720261202Monday, March 15, 202720261203Tuesday, March 16, 202720261204Wednesday, March 17, 202720261205Thursday, March 18, 202720261301Friday, March 19, 202720261302Monday, March 22, 202720261303Tuesday, March 23, 202720261304Wednesday, March 24, 202720261305Thursday, March 25, 202720261401Friday, March 26, 202720261402Monday, March 29, 202720261403Tuesday, March 30, 202720261404Wednesday, March 31, 202720261405Thursday, April 1, 202720261501Friday, April 2, 202720261502Monday, April 5, 202720261503Tuesday, April 6, 202720261504Wednesday, April 7, 202720261505Thursday, April 8, 2027 Cycle Code2027 Date20261601Friday, April 9, 202720261602Monday, April 12, 202720261603Tuesday, April 13, 202720261604Wednesday, April 14, 202720261605Thursday, April 15, 202720261701Friday, April 16, 202720261702Monday, April 19, 202720261703Tuesday, April 20, 202720261704Wednesday, April 21, 202720261705Thursday, April 22, 202720261801Friday, April 23, 202720261802Monday, April 26, 202720261803Tuesday, April 27, 202720261804Wednesday, April 28, 202720261805Thursday, April 29, 202720261901Friday, April 30, 202720261902Monday, May 3, 202720261903Tuesday, May 4, 202720261904Wednesday, May 5, 202720261905Thursday, May 6, 202720262001Friday, May 7, 202720262002Monday, May 10, 202720262003Tuesday, May 11, 202720262004Wednesday, May 12, 202720262005Thursday, May 13, 2027 Cycle Code2027 Date20262101Friday, May 14, 202720262102Monday, May 17, 202720262103Tuesday, May 18, 202720262104Wednesday, May 19, 202720262105Thursday, May 20, 202720262201Friday, May 21, 202720262202Monday, May 24, 202720262203Tuesday, May 25, 202720262204Wednesday, May 26, 202720262205Thursday, May 27, 202720262301Friday, May 28, 202720262302Monday, May 31, 202720262303Tuesday, June 1, 202720262304Wednesday, June 2, 202720262305Thursday, June 3, 202720262401Friday, June 4, 202720262402Monday, June 7, 202720262403Tuesday, June 8, 202720262404Wednesday, June 9, 202720262405Thursday, June 10, 202720262501Friday, June 11, 202720262502Monday, June 14, 202720262503Tuesday, June 15, 202720262504Wednesday, June 16, 202720262505Thursday, June 17, 2027 Cycle Code2027 Date20262601Friday, June 18, 202720262602Monday, June 21, 202720262603Tuesday, June 22, 202720262604Wednesday, June 23, 202720262605Thursday, June 24, 202720262701Friday, June 25, 202720262702Monday, June 28, 202720262703Tuesday, June 29, 202720262704Wednesday, June 30, 202720262705Thursday, July 1, 202720262801Friday, July 2, 202720262802Monday, July 5, 202720262803Tuesday, July 6, 202720262804Wednesday, July 7, 202720262805Thursday, July 8, 202720262901Friday, July 9, 202720262902Monday, July 12, 202720262903Tuesday, July 13, 202720262904Wednesday, July 14, 202720262905Thursday, July 15, 202720263001Friday, July 16, 202720263002Monday, July 19, 202720263003Tuesday, July 20, 202720263004Wednesday, July 21, 202720263005Thursday, July 22, 2027 Cycle Code2027 Date20263101Friday, July 23, 202720263102Monday, July 26, 202720263103Tuesday, July 27, 202720263104Wednesday, July 28, 202720263105Thursday, July 29, 202720263201Friday, July 30, 202720263202Monday, August 2, 202720263203Tuesday, August 3, 202720263204Wednesday, August 4, 202720263205Thursday, August 5, 202720263301Friday, August 6, 202720263302Monday, August 9, 202720263303Tuesday, August 10, 202720263304Wednesday, August 11, 202720263305Thursday, August 12, 202720263401Friday, August 13, 202720263402Monday, August 16, 202720263403Tuesday, August 17, 202720263404Wednesday, August 18, 202720263405Thursday, August 19, 202720263501Friday, August 20, 202720263502Monday, August 23, 202720263503Tuesday, August 24, 202720263504Wednesday, August 25, 202720263505Thursday, August 26, 2027 Cycle Code2027 Date20263601Friday, August 27, 202720263602Monday, August 30, 202720263603Tuesday, August 31, 202720263604Wednesday, September 1, 202720263605Thursday, September 2, 202720263701Friday, September 3, 202720263702Monday, September 6, 202720263703Tuesday, September 7, 202720263704Wednesday, September 8, 202720263705Thursday, September 9, 202720263801Friday, September 10, 202720263802Monday, September 13, 202720263803Tuesday, September 14, 202720263804Wednesday, September 15, 202720263805Thursday, September 16, 202720263901Friday, September 17, 202720263902Monday, September 20, 202720263903Tuesday, September 21, 202720263904Wednesday, September 22, 202720263905Thursday, September 23, 202720264001Friday, September 24, 202720264002Monday, September 27, 202720264003Tuesday, September 28, 202720264004Wednesday, September 29, 202720264005Thursday, September 30, 2027 Cycle Code2027 Date20264101Friday, October 1, 202720264102Monday, October 4, 202720264103Tuesday, October 5, 202720264104Wednesday, October 6, 202720264105Thursday, October 7, 202720264201Friday, October 8, 202720264202Monday, October 11, 202720264203Tuesday, October 12, 202720264204Wednesday, October 13, 202720264205Thursday, October 14, 202720264301Friday, October 15, 202720264302Monday, October 18, 202720264303Tuesday, October 19, 202720264304Wednesday, October 20, 202720264305Thursday, October 21, 202720264401Friday, October 22, 202720264402Monday, October 25, 202720264403Tuesday, October 26, 202720264404Wednesday, October 27, 202720264405Thursday, October 28, 202720264501Friday, October 29, 202720264502Monday, November 1, 202720264503Tuesday, November 2, 202720264504Wednesday, November 3, 202720264505Thursday, November 4, 2027 Cycle Code2027 Date20264601Friday, November 5, 202720264602Monday, November 8, 202720264603Tuesday, November 9, 202720264604Wednesday, November 10, 202720264605Thursday, November 11, 202720264701Friday, November 12, 202720264702Monday, November 15, 202720264703Tuesday, November 16, 202720264704Wednesday, November 17, 202720264705Thursday, November 18, 202720264801Friday, November 19, 202720264802Monday, November 22, 202720264803Tuesday, November 23, 202720264804Wednesday, November 24, 202720264805Thursday, November 25, 202720264901Friday, November 26, 202720264902Monday, November 29, 202720264903Tuesday, November 30, 202720264904Wednesday, December 1, 202720264905Thursday, December 2, 202720265001Friday, December 3, 202720265002Monday, December 6, 202720265003Tuesday, December 7, 202720265004Wednesday, December 8, 202720265005Thursday, December 9, 2027 Cycle Code2027 Date20265101Friday, December 10, 202720265102Monday, December 13, 202720265103Tuesday, December 14, 202720265104Wednesday, December 15, 202720265105Thursday, December 16, 202720265201Friday, December 17, 202720265202Monday, December 20, 202720265203Tuesday, December 21, 202720265204Wednesday, December 22, 202720265205Thursday, December 23, 202720265301Friday, December 24, 202720265302Monday, December 27, 202720265303Tuesday, December 28, 2027 Showing 25 cycle codes per column — scroll right for more weeks. Frequently Asked Questions QWhat does my 8-digit IRS cycle code mean? AIt follows the format YYYYWWDD: the first four digits are the tax processing year, the next two are the week of the year your return was processed, and the last two indicate your 'day of the week' posting cycle (01-05). QHow is a weekly cycle code (ending in 05) different from a daily one (01-04)? ADaily accounts post to the IRS master file Friday through Wednesday and generally see more frequent transcript and WMR/IRS2Go updates. Weekly accounts (code 05) post on Thursdays and typically only see one major update per week. QWhen will 2027 cycle codes start appearing on my transcript? ACycle codes with the 2026 prefix begin appearing once the 2027 filing season opens (typically late January), for tax year 2026 returns. See the 'Looking Ahead: 2027' table above to convert those codes into calendar dates. QDoes my cycle code tell me exactly when I'll get my refund? ANot on its own. Combine it with Code 846 once it appears - your cycle code tells you the processing date, and 846 confirms the refund has actually been issued. QWhy did my cycle code change during the tax season? AThis usually happens through IRS 'resequencing,' where your return is moved to a different processing batch (e.g., daily to weekly). It generally means a delay of one or more cycles rather than an error on your part. **Categories:** Taxes and Retirement --- ### [Does Your IRS Tax Transcript Show Your Refund and Direct Deposit Date? What N/A Really Means](https://savingtoinvest.com/will-ordering-an-irs-tax-transcript-help-me-find-out-when-ill-get-my-refund/) **Published:** March 16, 2017 **Author:** Andy **Content:** ### Key Takeaways - Your IRS transcript often shows more detail than WMR or IRS2Go, especially once you understand codes like 150, 570, 766, 806, 810 and 846. - Code 846 (refund issued) is the one that matters for your actual payment date; the 'processing date' on your transcript is not your refund date. - An N/A on your transcript is normal for 1 to 4 weeks after filing and doesn't mean anything is wrong with your return. - If you claimed the EITC or Additional Child Tax Credit, your transcript may take a bit longer to update due to the PATH Act hold, regardless of when you filed. - Codes 570 (hold) and 810 (freeze) mean further review is needed; most resolve on their own, but a Taxpayer Advocate can help if the delay is causing hardship. Reviewing your free IRS tax transcript is a technique a lot of filers use to get an update on their return processing and refund status, particularly when Where’s My Refund (WMR) or the IRS2Go app isn’t showing much beyond “still processing.” While the IRS’s official line is that a tax transcript **won’t** tell you exactly when or how much your refund will be, there’s a good case that it actually gives you more useful information than WMR does, especially if you’re facing a longer delay and can’t get through to a live agent. Covered in this article: what your transcript can (and can’t) tell you, the transaction codes that matter most, what an N/A on your transcript means, and what to do if your transcript shows your refund is under review. Covered in this Article: [Toggle](#) - [What Does My Transcript Tell Me?](#What_Does_My_Transcript_Tell_Me) - [When Does My Transcript Update?](#When_Does_My_Transcript_Update) - [Getting Your Refund Status via Your Transcript](#Getting_Your_Refund_Status_via_Your_Transcript) - [Does N/A on My Transcript Mean the IRS Hasn’t Processed My Return?](#Does_NA_on_My_Transcript_Mean_the_IRS_Hasnt_Processed_My_Return) - [What Your Transcript Can Tell You About a Refund Delay](#What_Your_Transcript_Can_Tell_You_About_a_Refund_Delay) - [Looking Ahead: 2027](#Looking_Ahead_2027) ### What Does My Transcript Tell Me? Once it’s available in your IRS Online Account, your tax transcript is often a better source of information than WMR when it comes to [updates on your refund](https://savingtoinvest.com/latest-update-on-your-irs-tax-refund-processing-and-payment-status-how-returns-with-errors-are-handled/) and potential delays beyond the standard 21-day window. Using the transcript’s transaction codes, cycle code, and processing date, you can get a lot more detail than WMR, IRS2Go, or even a live IRS agent will typically give you. You can use your transcript to confirm your refund was issued ([Code 846](https://savingtoinvest.com/code-846-refund-issued-on-your-irs-tax-transcript-what-it-means-for-your-direct-deposit-or-paper-check-refund-payment/)), see if it’s been delayed for further review ([Code 570](https://savingtoinvest.com/what-is-tax-code-tc-570-on-my-irs-transcript-and-will-it-delay-my-refund-account-freeze-or-additional-account-actions-pending/)), or check if it’s been frozen pending verification ([Code 810](https://savingtoinvest.com/irs-tax-transcript-code-810-refund-freeze-and-what-it-means/)). These three codes cover the vast majority of questions readers ask me about their transcript each filing season. ### When Does My Transcript Update? When you file your return, it generally takes 1 to 4 weeks before a transcript becomes available in your IRS account. Once available, your transcript updates in line with the IRS’s standard batch-processing cycle, generally overnight. As covered in [this article on WMR and transcript update days](https://savingtoinvest.com/when-does-the-irs-update-my-refund-status-on-wmr-irs2go-and-tax-return-details-on-my-transcript/), mass transcript updates for daily-cycle accounts typically land on **Tuesdays**, while weekly-cycle accounts usually update on **Fridays**. ### Getting Your Refund Status via Your Transcript WMR and IRS2Go are the official tools for checking refund status, but they only provide limited, high-level information: return received, refund approved, or refund sent. Your **IRS tax transcript**, by contrast, provides a lot more detail through the various [transaction codes](https://savingtoinvest.com/irs-tax-topic-error-codes-on-where-is-my-refund-wmr-and-irs2go/) in the transaction section. There’s nothing improper about using your transcript this way, and since [it’s free](https://savingtoinvest.com/getting-a-free-copy-of-your-irs-tax-return-information-form-4506t-irs-tax-transcript/), it’s worth pulling if WMR isn’t giving you the answers you need. As you can see in a typical transcript, Code 766 relates to refundable credits like the Earned Income Tax Credit, Code 806 shows your withholding, and [Code 846](https://savingtoinvest.com/code-846-refund-issued-on-your-irs-tax-transcript-what-it-means-for-your-direct-deposit-or-paper-check-refund-payment/) means your refund was issued, with a payment date attached. Add up your credits and withholding, subtract the return’s tax liability (Code 150), and that arithmetic should match your expected refund. See [this deeper walkthrough of transcript codes](https://savingtoinvest.com/using-your-irs-transcript-to-get-your-tax-return-and-refund-processing-status-and-key-dates/) for a line-by-line example. ### Does N/A on My Transcript Mean the IRS Hasn’t Processed My Return? Many filers see an “N/A” (Not Available) when trying to pull their current-year transcript, despite having filed days or weeks earlier. This is normal and happens every filing season, especially in February and March when volume is highest. An N/A simply means the IRS hasn’t yet loaded your return into its master file for processing, so no transcript has been generated for the current tax year. You’ll generally need to wait 1 to 4 weeks after filing before a transcript appears. If you’re also seeing a PATH Act hold because you claimed the [Earned Income Tax Credit or Additional Child Tax Credit](https://savingtoinvest.com/tax-refund-payment-delays-likely-according-to-the-irs/), your transcript may stay unavailable a bit longer, since the IRS doesn’t release those refunds before mid-to-late February by law regardless of when you filed. Once your return is assigned a processing batch (per your [cycle code](https://savingtoinvest.com/irs-refund-cycle-code-and-dates-using-tax-transcript-to-get-master-file-information-for-your-direct-deposit-date/)), your transcript will populate, generally overnight. If your return has errors or needs adjustment, that can also delay when a transcript first appears — but for the large majority of filers with no errors, the N/A simply disappears once your return is in queue. ### What Your Transcript Can Tell You About a Refund Delay If you can view your transcript, the codes listed will tell you exactly why your return might be under review. Common reasons returns get pulled for further review include: New details compared to your last few years of filing, an address change, filing before your official W-2 arrived, an education credit like the [American Opportunity Tax Credit](https://savingtoinvest.com/american-opportunity-tax-credit-extension-for-2011-and-2012-eligiblity-income-and-phase-out-limits/), identity verification requirements, adding or dropping a dependent, or an outstanding [tax offset](https://savingtoinvest.com/irs-refund-adjustments-and-treasury-bfs-offsets-tax-topic-codes-203-598-or-898/) for a prior-year balance or other debt. You’ll typically see a corresponding code for whichever of these applies to your return. If you can view both your account transcript and return transcript, that means the IRS has completed its initial processing, though your refund can still be held up pending further review. Your transcript will show whether there’s a hold, offset, or freeze on your refund, and once that’s resolved, you’ll see the final [Code 846](https://savingtoinvest.com/code-846-refund-issued-on-your-irs-tax-transcript-what-it-means-for-your-direct-deposit-or-paper-check-refund-payment/) line confirming your refund was issued. If you can’t view your transcript online, or the codes you’re seeing suggest something is genuinely wrong rather than routine processing, a [Taxpayer Advocate](https://savingtoinvest.com/contact-a-tax-advocate-to-help-get-your-refund-released-from-the-irs/) may be able to help, particularly if the delay is causing financial hardship. See my [full guide to refund delays](https://savingtoinvest.com/why-is-it-taking-so-long-to-get-my-tax-refund/) for the complete list of reasons refunds are held up and what to do about each one. ## Looking Ahead: 2027 The transcript codes and mechanics covered here (Codes 150, 570, 766, 806, 810, 846, PATH Act holds, and cycle codes) are structural parts of how the IRS processes returns, and they aren’t likely to change for the 2027 filing season. What can change year to year is how backed up manual review queues get, which affects how long N/A or a 570 hold lasts before you see 846. I’ll keep this page updated with the latest processing-time data as each season progresses. Frequently Asked Questions QWill my IRS transcript tell me exactly when I'll get my refund? ANot with certainty, but it gets close. Once you see Code 846 on your transcript with a date attached, that's the IRS confirming your refund has been issued and the date it expects to send it, which is generally more specific and often available sooner than what WMR shows. QWhat does N/A mean on my tax transcript? AIt means the IRS hasn't yet loaded your return into its system for processing, so no transcript has been generated for the current tax year. This is normal and typically resolves within 1 to 4 weeks of filing, though PATH Act holds for EITC or Additional Child Tax Credit claims can extend that window. QWhat's the difference between Code 570 and Code 810 on my transcript? ACode 570 means your return needs additional review before your refund can be released, and it often resolves automatically. Code 810 means the IRS has frozen your refund entirely, usually pending identity or credit verification, and requires the IRS to complete its review or receive information from you before the freeze lifts. QCan I speed up my refund by checking my transcript more often? ANo. Your transcript updates at most once a day, generally overnight in line with the IRS's batch-processing schedule, so checking multiple times a day won't show anything new. QWhen should I contact a Taxpayer Advocate about a delayed refund? AIf your transcript shows a hold or freeze code without further movement for an extended period, or if the delay is causing genuine financial hardship, a Taxpayer Advocate can intervene on your behalf, particularly once your return has completed initial IRS processing. **Categories:** Taxes and Retirement **Tags:** IRS, refund, transcript, WMR --- ### [When Does the IRS Update My Refund Status on WMR, IRS2Go, and Tax Transcript in 2026?](https://savingtoinvest.com/when-does-the-irs-update-my-refund-status-on-wmr-irs2go-and-tax-return-details-on-my-transcript/) **Published:** February 18, 2022 **Author:** Andy **Content:** ### Key Takeaways - WMR/IRS2Go usually get major updates on Wednesdays (daily accounts, cycle codes 01-04) or Saturdays (weekly accounts, cycle code 05). - Tax transcripts usually get major updates on Tuesdays (daily accounts) or Fridays (weekly accounts). - All three tools update at most once a day - checking multiple times a day won't reveal anything new. - The 'processing date' on your transcript is not your refund date; only code 846 confirms your refund has actually been issued. - Codes 570 and 971 without a follow-up letter usually mean a routine PATH Act hold for EITC/ACTC verification, not an error on your return. - This update pattern is tied to IRS batch-processing cycles and has held steady for years, so it should carry into the 2027 filing season too. With millions of tax filers anxiously waiting for their refund — often the largest single payment they receive all year — it’s not uncommon to hear frustration with the IRS systems designed to provide updates on tax processing and refund payments. The official Where’s My Refund (**WMR**) site and **IRS2Go** mobile app are the two most common places filers check on their return after the IRS has received it. You can also check your **tax transcript**, which can sometimes update earlier than WMR when there are processing issues, and generally provides more detail via transcript codes and processing dates. Many filers constantly refresh these sites, apps, and their transcript — for example while waiting for a [PATH Act refund freeze](https://savingtoinvest.com/processing-dates-to-get-my-refund-payment-dates/) to lift — only to be disappointed when things don’t change as often as they’d like, especially compared to the near-real-time updates most of us are used to elsewhere. Tax refund processing goes through [several stages](https://savingtoinvest.com/wmr-and-irs2go-status-differences-return-received-accepted-or-under-review-and-refund-approved-versus-refund-sent/), but status tools and transcripts only update once a day at most — if there’s an update at all. There are, however, certain days when a major update is more likely, which is what I cover below. Covered in this Article: [Toggle](#) - [Which Days Do WMR and IRS2Go Update Refund Status and DD Date?](#Which_Days_Do_WMR_and_IRS2Go_Update_Refund_Status_and_DD_Date) - [When Does My IRS Tax Transcript Update?](#When_Does_My_IRS_Tax_Transcript_Update) - [Which Days of the Week Do Transcripts and WMR/IRS2Go Update?](#Which_Days_of_the_Week_Do_Transcripts_and_WMRIRS2Go_Update) - [What Does the Processing Date on My Transcript Mean?](#What_Does_the_Processing_Date_on_My_Transcript_Mean) - [What to Do If You’re Waiting for Your Return to Be Processed](#What_to_Do_If_Youre_Waiting_for_Your_Return_to_Be_Processed) - [Which Transcript Codes (570 and 971) Mean a Refund Delay](#Which_Transcript_Codes_570_and_971_Mean_a_Refund_Delay) - [Looking Ahead: 2027](#Looking_Ahead_2027) ### Which Days Do WMR and IRS2Go Update Refund Status and DD Date? Per the [IRS’s own refund FAQ](https://www.irs.gov/refunds/tax-season-refund-frequently-asked-questions), WMR can technically update any day of the week — but only once a day at most. This is because the IRS still processes returns in batches or cycles across legacy systems — see [how to find your processing cycle](https://savingtoinvest.com/irs-refund-cycle-code-and-dates-using-tax-transcript-to-get-master-file-information-for-your-direct-deposit-date/). Major status updates for **daily accounts** (cycle codes ending 01–04) usually land on **Wednesdays**; major updates for **weekly accounts** (cycle code ending 05) are generally on **Saturdays**. IRS **batch processing** runs 12am to 3am (EST) most nights. **Direct deposit processing** for refund payments generally occurs between 3:30am and 6:00am (EST) most nights except Sundays. Your exact direct deposit date will show on WMR/IRS2Go once the IRS completes processing, which also appears as [code 846](https://savingtoinvest.com/your-tax-refund-has-been-approved-for-direct-deposit-and-transcript-shows-846-with-payment-date-but-why-was-my-refund-adjusted/) (refund issued) on your tax transcript. ### When Does My IRS Tax Transcript Update? Many filers turn to their IRS tax transcript when WMR or IRS2Go isn’t providing enough detail on processing or direct deposit dates. Like WMR and IRS2Go, transcripts can update any day of the week, but generally once a day, overnight, in line with standard IRS batch processing. **Mass transcript updates** for daily accounts are usually on **Tuesdays**; primary updates for weekly accounts are usually on **Fridays**. It can also take **1 to 4 weeks** for your transcript to become available after you initially file. You may see an N/A on your account during this window. ### Which Days of the Week Do Transcripts and WMR/IRS2Go Update? The table below summarizes the days when your refund status and transcript are most likely to update. These are general guidelines — the IRS doesn’t publish exact processing rules, and individual situations vary. DayMajor Updates**Mon**–**Tue**Tax Transcript Updates (*Daily Accounts*)**Wed**WMR/IRS2Go Updates (*Daily Accounts*)**Thu**–**Fri**Tax Transcript Updates (*Weekly Accounts*)**Sat**WMR/IRS2Go Updates (*Weekly Accounts*) *Transcript and WMR major update days* **[Get the latest money, tax and stimulus news directly in your inbox]()** ### What Does the Processing Date on My Transcript Mean? The processing date on your transcript ties back to your [IRS cycle code](https://savingtoinvest.com/irs-refund-cycle-code-and-dates-using-tax-transcript-to-get-master-file-information-for-your-direct-deposit-date/) — it’s the estimated date of the next IRS processing cycle for your return, which could result in another transcript update and a new processing date. The processing date is **not** your refund payment date or direct deposit date — that’s signified by code 846 on WMR/IRS2Go. Your actual refund date can land before, on, or after the processing date shown on your transcript. See [more examples on interpreting your transcript](https://savingtoinvest.com/using-your-irs-transcript-to-get-your-tax-return-and-refund-processing-status-and-key-dates/) for details. ### What to Do If You’re Waiting for Your Return to Be Processed In most cases, no further action is needed once your return has been filed and accepted. If you e-filed through a [reputable tax software provider](https://savingtoinvest.com/the-best-tax-software-and-free-filing-options-as-tax-filing-goes-primarily-online/), you should generally see a processing status in WMR/IRS2Go within 24 hours. The actual review and processing of your return and payment takes longer — generally 2 to 5 days for the first round of automated processing. If there are errors or concerns with your return, WMR and your transcript will reflect why, via [transcript transaction codes](https://savingtoinvest.com/irs-tax-topic-error-codes-on-where-is-my-refund-wmr-and-irs2go/). The IRS says 9 out of 10 refunds go out within 21 days for e-filed returns, though [delays remain common for flagged returns](https://savingtoinvest.com/why-is-it-taking-so-long-to-get-my-tax-refund/) — see that breakdown for the full list of reasons and this season’s actual numbers. If you filed a paper return, expect several additional days for WMR/IRS2Go and your transcript to update. If you don’t get a status update, [you can call the IRS](https://savingtoinvest.com/how-can-i-actually-speak-to-a-real-person-or-agent-at-the-irs-phone-numbers-that-work/), but they’ll generally ask you to wait at least 21 days before doing so. ### Which Transcript Codes (570 and 971) Mean a Refund Delay If your transcript shows [code 570 and 971 (notice issued)](https://savingtoinvest.com/what-is-tax-code-tc-570-on-my-irs-transcript-and-will-it-delay-my-refund-account-freeze-or-additional-account-actions-pending/) and you haven’t received a formal [audit letter](https://savingtoinvest.com/what-is-a-cp05-tax-notice-and-should-i-worry-when-i-get-this-letter-from-the-irs-around-my-tax-return-and-refund-payment/), ID verification letter, or [60-day review letter](https://savingtoinvest.com/i-got-a-need-an-additional-60-day-review-letter-from-the-irs/), you’re most likely on hold while the IRS verifies your return — commonly tied to refundable credits like the **Earned Income Tax Credit (EITC)** or **Additional Child Tax Credit (ACTC)**, both of which are held under the [PATH Act](https://savingtoinvest.com/tax-refund-payment-delays-likely-according-to-the-irs/) until at least mid-to-late February every year, by law. **Why the delay?** When you e-file, your return is randomly routed to one of several IRS processing hubs, regardless of where you live. Some hubs move faster through verification queues than others in any given season. There’s generally nothing you can do to speed this up directly. Even a [Taxpayer Advocate](https://savingtoinvest.com/contact-a-tax-advocate-to-help-get-your-refund-released-from-the-irs/) can’t intervene until the IRS finishes its own verification — you’ll need to wait it out, while keeping an eye on your transcript for the codes to clear. ## Looking Ahead: 2027 The Wednesday/Saturday (WMR) and Tuesday/Friday (transcript) update pattern has held steady for years and is driven by the IRS’s underlying batch-processing cycle, not by any policy that changes annually — so I’d expect the same pattern to hold for the 2027 filing season. What does shift year to year is how backed up the manual-review queues get; keep an eye on [current filing-season delay data](https://savingtoinvest.com/why-is-it-taking-so-long-to-get-my-tax-refund/) each year for the latest picture, and I’ll flag it here if the IRS changes its batch-cycle structure. Frequently Asked Questions QWhat day does WMR update? AWMR and IRS2Go typically get major updates on Wednesdays for daily-cycle accounts (cycle codes ending 01-04) and Saturdays for weekly-cycle accounts (cycle code ending 05). QWhat day does my tax transcript update? ATranscripts typically update on Tuesdays for daily-cycle accounts and Fridays for weekly-cycle accounts, generally overnight as part of the IRS's standard batch processing. QIs the processing date on my transcript my refund date? ANo. The processing date is the estimated date of your return's next IRS processing cycle, not your refund payment date. Only transaction code 846 confirms your refund has been issued, along with the actual payment date. QWhy do I have codes 570 and 971 on my transcript? AWithout a follow-up letter, this combination usually signals a routine hold while the IRS verifies your return, often tied to PATH Act requirements for returns claiming the EITC or Additional Child Tax Credit. It typically resolves on its own once verification completes. QCan I speed up my refund by checking WMR or my transcript more often? ANo. Both update at most once per day, so checking multiple times a day won't show anything new. Checking once each morning is enough to catch any update. **Categories:** Taxes and Retirement **Tags:** IRS, IRS2Go, taxes, transcript, WMR --- ### [2026-2027 Maximum Workers' Compensation Weekly Benefit By State](https://savingtoinvest.com/maximum-workers-compensation-wc-weekly-benefit-by-state/) **Published:** January 9, 2023 **Author:** Andy **Content:** ### Key Takeaways - Workers' comp weekly benefits are typically two-thirds of your average weekly wage (AWW), capped at your state's maximum - a handful of states (Michigan, Iowa, Rhode Island, Connecticut, Alaska) use different formulas based on after-tax or spendable earnings. - Maximum weekly benefits vary enormously by state: Illinois' cap topped $2,000/week in early 2026, while smaller states cap well under $1,000. - Most states adjust their maximum every January 1; a few - including New York, Massachusetts, Texas, and Illinois - adjust on other dates (July 1, October 1, or twice a year). - Your benefit rate locks in on your date of injury and does not increase later even if the state raises its maximum the following year. - Workers' comp benefits are completely exempt from federal and state income tax under 26 U.S.C. u00a7 104(a)(1). Every state, U.S. territory, and D.C. sets its own maximum weekly workers’ compensation benefit — the highest amount an injured worker can receive, regardless of how much they earned before the injury. These caps are recalculated every year (and sometimes twice a year), tied to each state’s average weekly wage, so the number that applied to your 2023 injury is almost never the number that applies today. If you were hurt on the job in 2026, your benefit is based on the maximum rate in effect on your date of injury — not the rate in effect when your claim is decided or when you read this article. Covered in this Article: [Toggle](#) - [2026 Maximum Weekly Workers’ Comp Benefit by State](#2026_Maximum_Weekly_Workers_Comp_Benefit_by_State) - [How the Maximum Is Calculated](#How_the_Maximum_Is_Calculated) - [Two Examples: What This Looks Like on a Paycheck](#Two_Examples_What_This_Looks_Like_on_a_Paycheck) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) ## 2026 Maximum Weekly Workers’ Comp Benefit by State Because each state sets its own formula and adjustment date, there’s no single federal table — unlike, say, the [minimum wage](https://savingtoinvest.com/federal-and-state-minimum-wage-increases/), which the Department of Labor tracks centrally. State2026 Maximum Weekly BenefitAdjusts OnCalifornia$1,764.11January 1Florida$1,358January 1Illinois$2,008.60 (as of Jan 15, 2026)January 15 & July 15Maryland$1,322January 1Massachusetts$1,922.48October 1New Jersey$1,199January 1New York$1,222.42July 1Ohio$1,281January 1Pennsylvania$1,394.00January 1South Carolina$1,178.30January 1Texas$1,271October 1District of Columbia$1,808.66 (2025 confirmed rate)Annual COLA *Sources: state workers’ compensation boards and insurance departments — California DIR, Florida CFO’s Office, Illinois Workers’ Compensation Commission, Maryland WCC, Massachusetts EOLWD, New Jersey DOL, New York WCB, Ohio BWC, Pennsylvania DLI, South Carolina WCC, Texas DWC. Full 50-state + territory chart: [SSA POMS DI 52150.045](https://secure.ssa.gov/poms.nsf/lnx/0452150045).* The verified 2026 maximums above cover the most-searched states; for any state not listed, the Social Security Administration maintains an [official chart of every state’s maximum workers’ comp benefit](https://secure.ssa.gov/poms.nsf/lnx/0452150045) that’s updated as states publish new rates. ## How the Maximum Is Calculated Most states pay two-thirds (66.67%) of your average weekly wage, capped at the state maximum. A few states use a different formula entirely: - **Michigan and Alaska:** 80% of your after-tax or “spendable” wages - **Iowa:** 80% of spendable earnings - **Rhode Island:** 75% of spendable earnings - **Connecticut:** 75% of after-tax average weekly wage - **Texas:** 70% of average weekly wage Your average weekly wage (AWW) is usually calculated from your gross earnings over the 52 weeks before your injury, though some states use your highest-earning 13 weeks instead. Overtime and shift differentials typically count toward AWW; tips and one-time bonuses are handled differently depending on the state. If two-thirds (or your state’s percentage) of your AWW comes out above the state maximum, you’re capped at the maximum — you don’t get the extra. If it comes out below your state’s minimum weekly benefit, most states have a wage floor instead. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get updates as more states finalize their 2027 rates.* ## Two Examples: What This Looks Like on a Paycheck **Maria** works at a distribution center in Ohio earning $950/week. She injures her back and is out of work for 10 weeks. Ohio pays two-thirds of AWW: $950 × 0.667 = $633.37/week, well under Ohio’s $1,281 maximum, so she receives the full two-thirds — about $6,334 tax-free over 10 weeks. **David** is an ICU nurse in California earning $1,900/week between base pay and shift differentials. Two-thirds of that is $1,266.87/week — still under California’s $1,764.11 maximum for 2026, so he also receives the full two-thirds rather than being capped. A higher earner making $3,000/week in the same California claim would be capped at $1,764.11/week regardless of how much two-thirds of their actual wage would otherwise come to. ## Common Issues to Watch Out For - **Using last year’s rate.** Because most states adjust every January 1 (with New York, Massachusetts, and Texas on their own schedules), an injury in December 2025 and an injury in January 2026 can be governed by two different maximums even though only weeks apart. - **Assuming the national two-thirds rule applies everywhere.** Michigan, Iowa, Rhode Island, Connecticut, Alaska, and Texas all use different percentages or definitions of wages — don’t assume your state uses the standard two-thirds-of-gross formula. - **Confusing the benefit type.** Temporary total disability (TTD), temporary partial disability (TPD), permanent partial disability (PPD), and permanent total disability (PTD) are calculated differently, and only TTD uses the straightforward AWW-times-percentage math shown above. - **Forgetting the waiting period.** Most states require you to be out of work 3 to 7 days before benefits start, and some don’t pay retroactively for that waiting period unless your disability lasts past a state-set threshold (often 14 or 21 days). - **Not knowing your rate is locked in.** If your state raises its maximum the year after your injury, your benefit does not increase — it stays tied to the maximum in effect on your date of injury. ## Looking Ahead: 2027 Outlook Workers’ comp maximums are tied to each state’s average weekly wage, which typically rises 2–5% a year depending on local wage growth. States that adjust every January 1 will publish their 2027 maximums in the final months of 2026 — usually October through December — based on wage data collected earlier in the year. States on other cycles (New York and Illinois in July, Massachusetts and Texas in October) will publish their next adjustments closer to those dates. If you were injured in late 2026 and your state hasn’t published its 2027 rate yet, the current-year maximum still applies to your claim based on your date of injury — it won’t change retroactively once the new rate is announced. **Related reading:** - [Maximum Weekly Unemployment Benefits by State](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/) - [2026–2027 Minimum Wage by State](https://savingtoinvest.com/federal-and-state-minimum-wage-increases/) - [Overtime Pay and How Much Overtime Employees Can Work](https://savingtoinvest.com/overtime-pay-and-how-much-overtime-employees-can-work/) Frequently Asked Questions QHow much does workers' comp pay per week in 2026? AMost states pay two-thirds of your average weekly wage, tax-free, up to a state-set maximum. The 2026 maximums range from around $1,178/week (South Carolina) to over $2,000/week (Illinois), depending on the state. QIs workers' comp taxable? ANo. Workers' compensation benefits are exempt from federal and state income tax under 26 U.S.C. u00a7 104(a)(1). The only exception is a partial offset if you're also receiving Social Security Disability (SSDI) at the same time. QWhich state has the highest workers' comp maximum in 2026? AIllinois had the highest confirmed 2026 maximum at $2,008.60/week (effective January 15, 2026), followed by Massachusetts at $1,922.48/week. QCan I get more than my state's maximum workers' comp benefit? ANo. If two-thirds of your average weekly wage exceeds your state's cap, you receive the cap - not the full two-thirds. High earners are the most likely to be affected by the cap. QDoes my workers' comp rate increase if my state raises the maximum the next year? ANo. Your benefit rate is locked in based on your date of injury and does not increase later, even if your state adopts a higher maximum in a subsequent year. QWhen does workers' comp start paying after an injury? AMost states have a waiting period of 3 to 7 days before benefits begin. If your disability lasts past a state-set threshold (often 14-21 days), benefits are typically paid retroactively back to day one. **Categories:** Taxes and Retirement --- ### [Why is My Tax Refund So Low Compared to Last Year?](https://savingtoinvest.com/why-is-my-tax-refund-so-low-compared-to-prior-years/) **Published:** February 3, 2017 **Author:** Andy **Content:** ### Key Takeaways - The average federal refund was up about 11% in the 2026 filing season (roughly $3,397), mainly due to new OBBB deductions for tips, overtime, auto loan interest, and seniors 65+. - Because the IRS didn't update 2025 withholding tables for these new deductions, many eligible filers got the benefit as a lump-sum refund instead of through bigger paychecks all year. - The Child Tax Credit is now permanently $2,200 per child (up to $1,700 refundable), higher than the $1,000 drop previously scheduled for 2026. - Common non-OBBB reasons for a lower refund still apply: Treasury offsets for debts like child support, withholding set too low across multiple jobs, and no longer itemizing due to a higher standard deduction. - For 2026 (filed in 2027), withholding tables will build OBBB's benefits into paychecks - so refunds may normalize lower next season even though your tax situation hasn't gotten worse. - Getting a smaller refund with the same or higher income usually just means you withheld more accurately - it's not automatically a bad outcome. If your refund feels smaller than you expected, you’re not imagining it being out of step with the news — average refunds are actually **up** this filing season, which can make an unchanged or lower refund of your own feel especially confusing. Nationally, the average federal refund reached **$3,397** as of early April 2026, up about **11.2%** from $3,055 the year before, largely thanks to new deductions under the One Big Beautiful Bill (OBBB). But averages don’t apply to everyone, and there are several common, specific reasons your own refund could still come in lower than you expected. See the [current-year refund schedule](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) if you’re also tracking when your payment will actually arrive, and [subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) for updates as refund trends and tax rules change. Covered in this Article: [Toggle](#) - [Why Refunds Went Up for Many Filers This Year](#Why_Refunds_Went_Up_for_Many_Filers_This_Year) - [Tax Refund Offset Reduction](#Tax_Refund_Offset_Reduction) - [Child Tax Credit and Other Credit Changes](#Child_Tax_Credit_and_Other_Credit_Changes) - [Standard Deduction Changes](#Standard_Deduction_Changes) - [Smaller Refund Scenarios Due to Paycheck Withholding](#Smaller_Refund_Scenarios_Due_to_Paycheck_Withholding) - [Refund Advance Loan Fees](#Refund_Advance_Loan_Fees) - [Historical Note: Expired Pandemic-Era Provisions](#Historical_Note_Expired_Pandemic-Era_Provisions) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) ### Why Refunds Went Up for Many Filers This Year The One Big Beautiful Bill (OBBB), passed in 2025, introduced several new deductions — for tips, overtime pay, auto loan interest, and a new $6,000 deduction for seniors 65 and older. The IRS estimated the average tip deduction alone was worth more than $7,000, the overtime deduction averaged over $3,100, and the senior deduction averaged above $7,500. Here’s the twist: the IRS did **not** update 2025 paycheck withholding tables to reflect these new deductions. That means most eligible taxpayers kept having taxes withheld all year as if these breaks didn’t exist, then got the benefit back in one lump sum when they filed — instead of seeing it spread across slightly bigger paychecks throughout 2025. If your own refund didn’t go up the way the national average did, it’s likely because you don’t qualify for these specific new deductions (see [no tax on tips](https://savingtoinvest.com/higher-refunds-with-no-tax-on-tips-deduction-for-2025-to-2028-how-it-works/), [no tax on overtime](https://savingtoinvest.com/no-tax-on-overtime-who-qualifies-how-to-calculate-your-deduction-with-e/), and the [$6,000 senior deduction](https://savingtoinvest.com/the-6000-senior-deduction-see-if-you-qualify/) for the eligibility rules) — not because something went wrong with your return. ### Tax Refund Offset Reduction One of the most common reasons a refund comes in lower than your software estimated is that the federal government has “offset,” or deducted, money from your refund to cover debts owed to other agencies. The Treasury’s Bureau of the Fiscal Service (BFS) manages the Treasury Offset Program (TOP) and can reduce your refund to cover: - Past-due child support - Federal agency non-tax debts - State income tax obligations - Unemployment compensation debts owed to a state You’ll get a formal notice from BFS explaining the offset and which agency requested it, with contact details for follow-up. The IRS itself can’t help with non-IRS offsets — you’ll need to [contact the Treasury Offset Program](https://fiscal.treasury.gov/top/contact.html) or the requesting agency directly. See more on [how offsets get applied to your refund](https://savingtoinvest.com/irs-refund-adjustments-and-treasury-bfs-offsets-tax-topic-codes-203-598-or-898/) and what [transaction code 898](https://savingtoinvest.com/your-tax-refund-has-been-approved-for-direct-deposit-and-transcript-shows-846-with-payment-date-but-why-was-my-refund-adjusted/) on your transcript means. If you filed jointly and believe you’re not responsible for your spouse’s debt, you can request your portion of the refund back using Form 8379, the injured spouse allocation — see the [IRS’s injured spouse guidance](https://www.irs.gov/forms-pubs/about-form-8379) for how to file it. ### Child Tax Credit and Other Credit Changes The Child Tax Credit (CTC) is now **$2,200 per qualifying child**, permanently locked in under OBBB — up from the $2,000 it had been, and higher than the drop to $1,000 that was previously scheduled to happen automatically at the end of 2025. Up to **$1,700 per child** of that credit is refundable as the Additional Child Tax Credit (ACTC), and both figures are now indexed to inflation going forward. See the [Child Tax Credit page](https://savingtoinvest.com/child-and-kiddie-tax-credit-and-income-thresholds/) for full income phase-out details. If your refund is lower than a prior year specifically because of credits, it’s usually because your income, number of dependents, or filing status changed — not because the credit itself shrank. Compare this year’s numbers directly against what you claimed last year before assuming something’s wrong. ### Standard Deduction Changes The standard deduction keeps rising with inflation. For 2025, it’s $15,750 (single/married filing separately), $23,625 (head of household), and $31,500 (married filing jointly). For 2026, it rises again to $16,100, $24,150, and $32,200 respectively. Filers 65 or older or blind get an additional standard deduction on top of that ($1,600 per qualifying condition for 2025, $1,650 for 2026) — and that’s separate from OBBB’s new $6,000 senior deduction described above, which stacks on top rather than replacing it. A higher standard deduction generally means smaller itemized deductions matter less for most filers, which can shrink a refund if you used to itemize (e.g., mortgage interest, charitable giving) and no longer benefit from doing so. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get notified as refund trends and IRS guidance are updated through the season.* ### Smaller Refund Scenarios Due to Paycheck Withholding A lot of smaller-than-expected refunds come down to how your W-4 withholding was set, not any change in tax law. Here are a few real reader scenarios that come up often: **Scenario 1 (multiple jobs):** Mary is single and normally gets a solid refund. This year she worked two jobs — $15,000 at one, $14,800 at the other — and her refund dropped to $400. *Why:* Each employer withheld taxes as if that job were her only income for the year, so neither withheld enough for her actual combined $29,800 income. To fix this going forward, she needs to [update her W-4](https://savingtoinvest.com/change-your-paycheck-tax-withholding-after-these-personal-and-financial-life-events/) — specifically using the multiple-jobs worksheet or the IRS’s online withholding estimator — so both employers withhold based on her true total income. **Scenario 2 (withholding set too low):** A single filer with no dependents earned about $14,000 and only had $590 withheld, ending up with a refund of just $95. *Why:* On the current W-4, this usually means Step 2 (multiple jobs/spouse works) or Step 4 (extra withholding) wasn’t filled in the way that matches the filer’s real tax liability — the form no longer uses the old “allowances” system, so if you want more withheld, the fix is entering an extra dollar amount in Step 4(c) of your W-4, not “claiming fewer allowances.” **Scenario 3 (higher income, smaller refund):** A single filer with no dependents made $30,000 (versus $22,000 two years earlier) and saw their refund drop from around $2,000 to $47, despite earning more. *Why:* Higher income pushed more of their pay into a higher marginal tax bracket, and withholding wasn’t adjusted to match. They took home more money throughout the year — which is arguably better than a large refund, since a big refund just means you gave the IRS an interest-free loan on your own money all year. ### Refund Advance Loan Fees If you used a refund advance or refund-transfer product through your tax software or preparer, part of your refund may have gone to pay processing or transfer fees before the rest was released to you. These fees and loan amounts vary by provider and change often, so check your specific provider’s current fee disclosure (Jackson Hewitt, H&R Block, TurboTax, Liberty Tax, and TaxAct all offer some version of this) rather than relying on a number that may be outdated by the time you read this. ### Historical Note: Expired Pandemic-Era Provisions A few older reasons for low refunds no longer apply. The temporary $10,200 unemployment income tax exclusion only applied to the 2020 tax year and was never extended. Expanded, fully-refundable Child Tax Credit and Dependent Care Credit amounts from 2021 also reverted years ago. If you’re comparing your refund to one from that era, keep in mind those were one-time boosts, not a baseline to expect again. ## Looking Ahead: 2027 Outlook Here’s what I’m watching for filers preparing 2026 tax returns (filed in early 2027): unlike 2025, the IRS **is** updating withholding tables for 2026 to build OBBB’s tips, overtime, auto loan interest, and senior deductions directly into paychecks throughout the year. That’s good news for your take-home pay, but it also means many filers who got an unusually large refund this season (because 2025 withholding didn’t reflect the new deductions) may see a smaller refund next season for the exact same tax situation — simply because they already received the benefit gradually instead of in one lump sum. A smaller 2027 refund compared to 2026 isn’t necessarily a red flag; check your total tax liability, not just the refund number, before assuming something changed for the worse. Frequently Asked Questions QWhy did my refund go down even though the news says average refunds are up? ANational averages are driven largely by new OBBB deductions for tips, overtime, auto loan interest, and seniors 65+. If you don't qualify for any of those, your refund follows the same rules as prior years - offsets, withholding, and credit eligibility - so it can move independently of the national average. QWhat is a tax refund offset? AAn offset is when the Treasury's Bureau of the Fiscal Service reduces your refund to pay a debt you owe to another agency, such as past-due child support, state taxes, or unemployment overpayments. You'll receive a separate notice explaining the offset. QWhy did my refund shrink even though I made more money this year? AHigher income often pushes more of your pay into a higher tax bracket, and if your W-4 withholding wasn't updated to match, less was set aside throughout the year relative to what you now owe. You likely took home more in each paycheck, which offsets the smaller refund. QWill my refund be smaller next year because of OBBB withholding changes? APossibly. Starting with tax year 2026, withholding tables will reflect OBBB's new deductions directly in your paycheck, so some filers who got a large lump-sum refund this year may see a smaller one when they file in 2027 for the same underlying tax situation. QIs a smaller refund a bad thing? ANot necessarily. A refund is money you overpaid the IRS interest-free during the year. A smaller refund (or none at all) generally means your withholding was more accurate, and you kept more of your own money in each paycheck instead of waiting for it back at tax time. **Categories:** Taxes and Retirement **Tags:** IRS, tax refund, withholding --- ### [Overtime Pay Rules in 2026: Who Qualifies, the Exempt Salary Threshold, and How to Calculate It](https://savingtoinvest.com/overtime-pay-and-how-much-overtime-employees-can-work/) **Published:** January 4, 2011 **Author:** Andy **Content:** Overtime pay in the United States is governed by the Fair Labor Standards Act (FLSA), and the core rule hasn’t changed in decades: covered, non-exempt employees must be paid time-and-a-half for every hour worked over 40 in a workweek. What has changed for 2026 is the salary level that determines whether an employee is exempt from that rule in the first place — and, separately, a new federal tax deduction for overtime pay that didn’t exist a few years ago. Covered in this Article: [Toggle](#) - [The Federal Overtime Rule: The Basics](#The_Federal_Overtime_Rule_The_Basics) - [Who’s Exempt From Overtime in 2026](#Whos_Exempt_From_Overtime_in_2026) - [How “No Tax on Overtime” Fits In](#How_%E2%80%9CNo_Tax_on_Overtime%E2%80%9D_Fits_In) - [Two Examples: Exempt vs. Non-Exempt](#Two_Examples_Exempt_vs_Non-Exempt) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) ## The Federal Overtime Rule: The Basics The FLSA covers more than 130 million workers. Unless you’re exempt, your employer must pay you overtime for hours worked over 40 in a workweek at a rate of at least 1.5 times your regular rate of pay. A few core rules that trip people up: - **No overtime hour limit.** The FLSA doesn’t cap how many hours an employee 16 or older can be required to work in a week — it only requires the premium pay once you cross 40 hours. - **The workweek is fixed.** Your employer defines a recurring 168-hour (seven-day) workweek. It doesn’t have to match the calendar week, but hours can’t be averaged across two or more weeks to avoid paying overtime. - **Overtime can’t be waived.** An agreement that “only 40 hours counts as working time,” or an employer announcement that “no overtime will be paid unless pre-authorized,” does not eliminate your right to be paid for overtime hours you actually worked. - **Overtime pay must exceed minimum wage.** Because it’s calculated as 1.5x your regular rate, overtime pay is always higher than whatever the applicable federal or [state minimum wage](https://savingtoinvest.com/federal-and-state-minimum-wage-increases/) requires. ## Who’s Exempt From Overtime in 2026 The most common exemption — the “white collar” exemption for executive, administrative, and professional employees — requires both a duties test and a minimum salary. For 2026, that minimum salary is: Threshold2026 AmountStandard salary level (EAP exemption)$684/week ($35,568/year)Highly compensated employee (HCE) total compensation$107,432/year (including at least $684/week salary)Special rate — Puerto Rico, Guam, USVI, N. Mariana Islands$455/week ($23,660/year)Special rate — American Samoa$380/week ($19,760/year)Computer employees paid hourly$27.63/hour *Source: [U.S. Department of Labor, Wage and Hour Division — Earnings Thresholds](https://www.dol.gov/agencies/whd/overtime/salary-levels).* These figures are lower than many employers expected. A 2024 DOL rule would have raised the standard threshold to $1,128/week by 2025, but a federal court in the Eastern District of Texas vacated that rule in November 2024. On May 14, 2026, the DOL published a technical amendment formally restoring the 2019 salary levels shown above, which is what’s currently in effect. Doctors, lawyers, teachers, and outside sales employees are exempt from the salary threshold entirely — they qualify for the EAP exemption based on job duties alone, regardless of salary. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) for updates if the DOL proposes a new salary threshold.* ## How “No Tax on Overtime” Fits In Separately from the FLSA pay rules above, the 2025 tax law created a federal income tax deduction for qualifying overtime pay — informally called “No Tax on Overtime.” This is a tax benefit, not a change to the FLSA’s overtime pay requirements: your employer still must pay you 1.5x your regular rate for overtime hours under the rules above, and the tax deduction is a separate calculation on your return. For the income limits, deduction caps, and worked examples, see our full guide: [2026–2027 No Tax on Overtime: Who Qualifies, How to Calculate Your Deduction](https://savingtoinvest.com/no-tax-on-overtime-who-qualifies-how-to-calculate-your-deduction-with-e/). ## Two Examples: Exempt vs. Non-Exempt **Priya** is a marketing coordinator earning $650/week ($33,800/year) and regularly works 45 hours. Because $650/week is below the $684 exemption threshold, she’s non-exempt regardless of her job duties — her employer owes her overtime for the 5 hours over 40, at 1.5x her regular hourly rate. **Marcus** is a shift supervisor earning $50,000/year ($961.54/week) who manages two or more employees and has hiring/firing authority. He’s above the $684/week threshold and meets the executive duties test, so he’s likely exempt from overtime — his employer isn’t required to pay him extra for weeks over 40 hours. ## Common Issues to Watch Out For - **Assuming a salary automatically means exempt.** Being paid a salary isn’t enough — you must also earn at least $684/week AND meet a duties test (executive, administrative, or professional responsibilities) to be exempt. - **Confusing state and federal thresholds.** Many states set their own, often higher, salary thresholds and duties tests for overtime exemption. When state law is more protective than federal law, the state rule applies. - **Averaging hours across weeks.** Working 30 hours one week and 50 the next doesn’t average out to no overtime owed — each workweek is calculated separately. - **Mixing up FLSA overtime pay with the overtime tax deduction.** Getting paid time-and-a-half (FLSA) and deducting overtime pay from your taxable income (No Tax on Overtime) are two entirely different things with different eligibility rules. - **Misclassifying computer professionals.** Computer employees have a separate, specific salary or hourly threshold ($27.63/hour) — don’t assume general office workers in tech-adjacent roles qualify for this exemption. ## Looking Ahead: 2027 Outlook The DOL has indicated it plans to review the overtime salary threshold again through the normal rulemaking process, which typically takes a year or more from proposal to final rule. Given the 2024 rule’s fate in court, any future increase is likely to face legal challenges if it’s set well above wage growth. For now, the $684/week threshold restored in May 2026 is the operative federal rule, and there’s no confirmed timeline for a change in 2027. We’ll update this page if the DOL issues a new proposed rule. **Related reading:** - [2026–2027 No Tax on Overtime: Who Qualifies, How to Calculate Your Deduction](https://savingtoinvest.com/no-tax-on-overtime-who-qualifies-how-to-calculate-your-deduction-with-e/) - [2026–2027 Minimum Wage by State](https://savingtoinvest.com/federal-and-state-minimum-wage-increases/) - [Maximum Workers’ Compensation Weekly Benefit By State](https://savingtoinvest.com/maximum-workers-compensation-wc-weekly-benefit-by-state/) **Categories:** Career and Relationships **Tags:** Exempt, Labor, Overtime, Pay --- ### [Are Unemployment Benefit Payments Taxable at a State and Federal Level? 1099-G Forms and Withholding Explained](https://savingtoinvest.com/are-unemployment-benefit-payments-taxable-at-a-state-and-federal-level-1099-g-forms-how-much-do-i-have-to-pay-based-on-my-withholding/) **Published:** January 12, 2021 **Author:** Andy **Content:** ### Key Takeaways - Unemployment compensation is taxable federal income, reported via Form 1099-G (Box 1), and due on your return like wages. - You can request 10% federal withholding via Form W-4V - it's voluntary, but recommended to avoid a surprise bill. - 16 states plus D.C. don't tax unemployment benefits at the state level: 9 have no state income tax at all (AK, FL, NV, NH, SD, TN, TX, WA, WY), and 7 more specifically exempt UI despite having a state income tax (AL, CA, MT, NJ, PA, VA, DC). - Your 1099-G for the 2026 tax year should arrive by January 31, 2027 - most states also let you download it online. - A 1099-G for benefits you never claimed is a red flag for identity theft - contact your state agency right away to request a correction. - The pandemic-era $10,200 tax exclusion applied only to 2020 unemployment income and has not been available since. Yes — unemployment compensation is taxable income at the federal level, and in most states, at the state level too. It’s reported on your tax return just like wages, and the IRS gets a copy of what you were paid. Here’s how the withholding, the 1099-G form, and state-by-state tax treatment actually work, so you’re not surprised at filing time. See how your state’s [maximum weekly unemployment benefit](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/) compares to others, and [subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get updates as tax rules change. Covered in this Article: [Toggle](#) - [IRS Guidance on Unemployment Compensation](#IRS_Guidance_on_Unemployment_Compensation) - [Why Withholding Taxes on Your Weekly Unemployment Check Can Be a Good Idea](#Why_Withholding_Taxes_on_Your_Weekly_Unemployment_Check_Can_Be_a_Good_Idea) - [How Will I Know How Much I Owe in Unemployment Taxes?](#How_Will_I_Know_How_Much_I_Owe_in_Unemployment_Taxes) - [When Will I Get My 1099-G Tax Form?](#When_Will_I_Get_My_1099-G_Tax_Form) - [What if I Got a 1099-G but Never Filed for Unemployment?](#What_if_I_Got_a_1099-G_but_Never_Filed_for_Unemployment) - [Is Unemployment Overpayment Taxable?](#Is_Unemployment_Overpayment_Taxable) - [Common Mistakes to Watch Out For](#Common_Mistakes_to_Watch_Out_For) ### IRS Guidance on Unemployment Compensation By law, unemployment compensation is taxable at the federal level and must be reported as income on your tax return. You can opt to have taxes withheld from your unemployment payments at the time you receive them, similar to how withholding works on a paycheck. If you choose withholding, your state UI agency will generally deduct a flat **10% for federal taxes**. State tax treatment varies a lot. As of 2026: - **No state income tax at all** (so nothing to withhold or owe on UI at the state level): Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. - **States that specifically exempt unemployment benefits** even though they otherwise have a state income tax: Alabama, California, Montana, New Jersey, Pennsylvania, Virginia, and Washington, D.C. - **Every other state** taxes unemployment compensation the same as regular income. Withholding is voluntary at both the federal and state level in most places, though a handful of states withhold by default unless you opt out — so check your state UI agency’s process when you file your claim, since you’ll be asked to make a withholding election. ### Why Withholding Taxes on Your Weekly Unemployment Check Can Be a Good Idea You’re not required to have federal or state taxes withheld from your unemployment payments, but I generally recommend it. Taking a small hit each week is a lot easier to absorb than a large bill when you file. For example, $30 withheld per week adds up to real money over a long claim — but it’s a much smaller hit than owing $1,000+ in one lump sum at tax time. And since all unemployment payments are reported to the IRS via Form 1099-G, there’s no way to avoid the tax by simply not withholding. To request withholding, fill out [Form W-4V, Voluntary Withholding Request (PDF)](https://www.irs.gov/pub/irs-pdf/fw4v.pdf) and give it to the agency paying your benefits — don’t send it to the IRS. If your state has its own withholding request form, use that instead. If you skip withholding (or it’s not enough to cover what you’ll owe), you can make quarterly estimated tax payments to stay ahead of the bill. This is worth thinking through carefully if you’re a small business owner, high earner, or freelancer whose income varies year to year, since a big unemployment payout on top of other income can push you into a higher bracket than expected. ### How Will I Know How Much I Owe in Unemployment Taxes? Your state UI agency sends you **Form 1099-G, Certain Government Payments**, showing your total unemployment compensation in Box 1 and any federal tax withheld in Box 4. You’ll report this figure, along with any W-2 or 1099 income, on your tax return. Most tax software, including [TurboTax](https://savingtoinvest.com/turbotax), will walk you through entering your 1099-G and calculating what you owe. You can also use the [IRS interactive tax assistant](https://www.irs.gov/help/ita/are-payments-i-receive-for-being-unemployed-taxable) to check whether a specific payment counts as taxable income for your situation. ### When Will I Get My 1099-G Tax Form? 1099-Gs are required by law to be mailed by **January 31** for the prior calendar year — so for the 2026 tax year, expect yours by January 31, 2027. If you don’t receive one, check your state’s UI website; most let you download a copy or request a reissue online rather than waiting on the phone. See other key [tax season filing and refund dates](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) while you’re getting your documents together. ### What if I Got a 1099-G but Never Filed for Unemployment? Unemployment fraud and identity theft remain an ongoing problem — scammers file claims using stolen identities, and the real person only finds out when a 1099-G shows up for benefits they never received. If this happens to you, contact your state UI agency immediately to report it and request a corrected 1099-G. If you can’t get a corrected form in time to file, report only the income you actually received on your return — don’t report the fraudulent amount. A corrected 1099-G later on helps you avoid an unexpected tax bill for income you never got. ### Is Unemployment Overpayment Taxable? Yes, both at the state and federal level if applicable. You may also be required to repay any overpaid unemployment benefits — see more on [overpayment waivers](https://savingtoinvest.com/do-i-have-to-pay-my-unemployment-benefits-back-if-overpaid/) if you’re facing a repayment demand. ### Common Mistakes to Watch Out For I hear from readers about a handful of the same issues every tax season: - **Not withholding anything, then getting hit with a surprise bill.** If you didn’t opt for the 10% federal withholding, set aside money on your own throughout your claim so filing season isn’t a shock. - **Assuming your state doesn’t tax UI when it actually does.** Check the list above — it’s a shorter list of exempt states than most people assume. - **Ignoring a 1099-G you don’t recognize.** Treat it as a possible identity-theft red flag and contact your state agency right away rather than assuming it’s a mistake that will sort itself out. - **Forgetting the 1099-G entirely at filing time.** It’s easy to overlook if it arrives separately from your other tax documents — keep it with your W-2s and other forms as soon as it arrives. *Historical note: for the 2020 tax year only, the American Rescue Plan excluded the first $10,200 of unemployment benefits ($20,400 for married couples) from federal tax. That exclusion was never extended to 2021 or later years, so all current unemployment income follows the standard rules described above.* Frequently Asked Questions QAre unemployment benefits taxable at the federal level? AYes. Unemployment compensation is taxable income at the federal level and must be reported on your tax return (Form 1040), regardless of which state you live in. QWhich states don't tax unemployment benefits? ASixteen states plus Washington, D.C. don't tax unemployment compensation at the state level. Nine have no state income tax at all - Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Seven more specifically exempt UI benefits despite otherwise taxing income - Alabama, California, Montana, New Jersey, Pennsylvania, Virginia, and D.C. QHow much tax can I have withheld from my unemployment check? AYou can request a flat 10% federal withholding using Form W-4V, submitted to the agency paying your benefits. Some states offer their own withholding request process and rate as well. QWhen will I get my 1099-G form? ABy law, 1099-Gs must be mailed by January 31 for the prior tax year. If you don't receive one, most state UI websites let you download or request a reissue directly. QWhat should I do if I got a 1099-G for unemployment I never claimed? AContact your state unemployment agency immediately - this is a common sign of identity theft. Request a corrected 1099-G, and if you can't get one before you file, report only the income you actually received. QIs the $10,200 unemployment tax exclusion still available? ANo. That exclusion applied only to unemployment income received in 2020 under the American Rescue Plan and was never extended to later tax years. **Categories:** Government Rebates and Payments --- ### [State Unemployment Phone Numbers and Getting in Touch With a Live Agent](https://savingtoinvest.com/state-unemployment-numbers-and-getting-in-touch-with-a-live-agent-for-help-with-your-ui-claim/) **Published:** June 14, 2020 **Author:** Andy **Content:** ### Key Takeaways - Most states split their phone support into a claims line and a separate account/technical-issues line - calling the right one saves a transfer. - Live chat and self-service portals (filing, certifying, checking payment status) are consistently faster than calling for routine tasks. - California (CA): 800-300-5616 for claims, 833-978-2511 for account issues. New York (NY): 888-209-8124, Monday-Friday 8am-5pm. - If a state's phone lines are consistently busy, contacting your state representative's or assembly member's office has worked well for many readers on stuck claims. - New Jersey (NJ) routes calls by county through 20+ regional centers - use the state's locator tool rather than a single number. - Numbers and hours change; confirm on the state's official page (linked in each section) before calling, especially outside business hours. One of the most common questions I get is simply: how do I reach a real person at my state unemployment office? Most state UI agencies push callers toward their website or an automated line first, and getting through to a live agent for a claim-specific issue can take some persistence. Below are current phone numbers, hours, and a few tips for the states I hear about most often. See how your state’s maximum benefit compares to others at our [state unemployment benefits comparison](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/) table, and [subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get updates as this list changes. If you have a number or approach that’s worked for you, leave a comment below — it may help someone else stuck in the same spot. Covered in this Article: [Toggle](#) - [California (CA) EDD Contact Numbers](#California_CA_EDD_Contact_Numbers) - [New York (NY) Unemployment Number](#New_York_NY_Unemployment_Number) - [Florida (FL) Unemployment Number](#Florida_FL_Unemployment_Number) - [Texas (TX) Unemployment Number](#Texas_TX_Unemployment_Number) - [Pennsylvania (PA) Unemployment Number](#Pennsylvania_PA_Unemployment_Number) - [New Jersey (NJ) Unemployment Number](#New_Jersey_NJ_Unemployment_Number) - [Illinois (IL) Department of Employment Security (IDES) Contact Numbers](#Illinois_IL_Department_of_Employment_Security_IDES_Contact_Numbers) - [Georgia (GA) Department of Labor (GDOL) Contact Numbers](#Georgia_GA_Department_of_Labor_GDOL_Contact_Numbers) - [Virginia (VA) VEC Contact Numbers](#Virginia_VA_VEC_Contact_Numbers) ### California (CA) EDD Contact Numbers See the [California unemployment resource page](https://savingtoinvest.com/california-unemployment-benefits/) for more on filing and current benefit amounts. For phone support: - **Unemployment customer service:** 1-800-300-5616 (claim-specific questions), Monday–Friday, 8 a.m.–5 p.m. Pacific - **Account and password issues:** 1-833-978-2511 - **TTY:** 1-800-815-9387 - **Live chat:** available Monday–Friday, 9 a.m.–2 p.m. Pacific via [Ask EDD](https://askedd.edd.ca.gov/AskEDD/s/categorydetails?category=Unemployment%5FInsurance%5FBenefits) For the fastest service, use [UI Online](https://edd.ca.gov/en/unemployment/eligibility/) to file, certify, and check payment status rather than calling — EDD’s own phone lines are the slowest option for routine questions. ### New York (NY) Unemployment Number See the [New York unemployment resource page](https://savingtoinvest.com/new-york-unemployment-benefits/) for benefit amounts and partial UI rules. - **Telephone Claims Center:** 1-888-209-8124, Monday–Friday, 8 a.m.–5 p.m. - **Hearing-impaired assistance:** 1-888-783-1370 - **TTY/TDD relay:** call 1-800-662-1220 first and ask them to connect you to the Telephone Claims Center Press 9 during the call for an interpreter if you need one — most languages are covered. ### Florida (FL) Unemployment Number See the [Florida unemployment resource page](https://savingtoinvest.com/florida-unemployment-benefits/) for benefit amounts and eligibility. - **Reemployment Assistance Customer Service:** 1-833-FL-APPLY (1-833-352-7759), Monday–Friday, roughly 8 a.m.–5 p.m. Eastern - Follow the automated prompts for reemployment assistance claims — Florida’s phone menu changes periodically, so listen through the full menu before selecting an option You can also use the chat feature on [FloridaJobs.org](https://www.floridajobs.org/Reemployment-Assistance-Service-Center/reemployment-assistance/claimants) for general questions, or the [claimant contact form](https://www.floridajobs.org/Reemployment-Assistance-Service-Center) for account-specific issues and appeals. ### Texas (TX) Unemployment Number See the [Texas unemployment resource page](https://savingtoinvest.com/texas-unemployment-benefits/) for current benefit amounts. - **Tele-Center (speak with a representative):** 1-800-939-6631, daily 7 a.m.–7 p.m. Central - **Tele-Serv (automated, for payment requests and general info):** 1-800-558-8321, available daily Tele-Serv can handle most routine tasks — requesting a payment, checking claim status — without waiting for a live agent. ### Pennsylvania (PA) Unemployment Number See the [Pennsylvania unemployment resource page](https://savingtoinvest.com/pennsylvania-unemployment-benefits/) for benefit amounts and partial UI rules. - **UC Customer Service Line:** 1-888-313-7284, Monday–Friday, 8 a.m.–4 p.m. - **UC in-person appointment scheduling:** 1-855-284-8545 - **ASL videophone:** 717-704-8474, Wednesdays and Fridays, noon–4 p.m. - **Email:** uchelp@pa.gov - **[Live chat](https://www.uc.pa.gov/Chat/index.aspx):** Monday–Friday, 8 a.m.–4 p.m. ### New Jersey (NJ) Unemployment Number See the [New Jersey unemployment resource page](https://savingtoinvest.com/new-jersey-unemployment-benefits/) for current benefit amounts. New Jersey routes calls through more than 20 regional Reemployment Call Centers assigned by county, and those numbers shift often enough that I won’t list them all here. Use NJ’s [Reemployment Call Center locator](https://myunemployment.nj.gov/before/about/howtoapply/callrcc.shtml) to find the current number for your county, or see the [full phone number list (PDF)](https://nj.gov/labor/forms%5Fpdfs/ui/phone%5Fnumbers.pdf) directly from the NJ Department of Labor. Regional centers are generally open 8:30 a.m.–4:30 p.m., Monday–Friday. ### Illinois (IL) Department of Employment Security (IDES) Contact Numbers See the [Illinois unemployment resource page](https://savingtoinvest.com/illinois-unemployment-benefits/) for benefit amounts. - **Claims questions:** 1-800-244-5631 - **Tele-Serve (certification):** 312-338-4337, Monday–Friday, 3 a.m.–7:30 p.m. - **Appointment scheduling hotline:** 217-558-0401 - **Hearing impaired:** dial 711 for the Illinois Relay System ### Georgia (GA) Department of Labor (GDOL) Contact Numbers See the [Georgia unemployment resource page](https://savingtoinvest.com/georgia-unemployment-benefits/) for benefit amounts and duration rules. - **Unemployment insurance customer service:** 1-877-709-8185 - **Metro Atlanta:** 404-232-3001 - GDOL career centers are open Monday–Friday, 8 a.m.–4:30 p.m. GDOL strongly encourages using its [online portal](https://dol.georgia.gov/individuals/unemployment-benefits) first — phone wait times here tend to run longer than in most other states. ### Virginia (VA) VEC Contact Numbers See the [Virginia unemployment resource page](https://savingtoinvest.com/virginia-unemployment-benefits/) for current benefit amounts, including the July 2026 increase. - **Customer Contact Center:** 1-866-832-2363, Monday–Friday, 8:15 a.m.–4:30 p.m. and Saturday, 9 a.m.–1 p.m. - **Voice Response System** (payment status, claim status): 1-800-897-5630 - **[VEC website chatbot](https://www.vec.virginia.gov/)** is available outside normal call center hours and can point you in the right direction faster than waiting on hold Virginia also requires active job search reporting for most claimants — see [VA Work Search Requirements](https://www.vawc.virginia.gov/vosnet/Default.aspx) for what counts and how to log it. Frequently Asked Questions QWhy can't I get through on my state's unemployment phone line? AMost state UI call centers can only handle a fraction of incoming calls during high-volume periods. Try calling right when lines open in the morning, use live chat or a self-service portal first, or try again later in the week when volume tends to be lower. QWhat information should I have ready when I call? AYour Social Security number, your claim or case number if you have one, and details of your most recent employer (dates of employment, reason for separation). Having this ready speeds up identity verification significantly. QCan contacting my state representative help if I can't reach unemployment directly? AYes. Many readers have had success contacting their state assembly member, senator, or congressional office. Caseworkers there can often escalate a stuck claim faster than repeated calls to the general UI line. QIs there a faster way to get answers than calling? AUsually, yes. Most states now offer live chat and detailed self-service portals that handle password resets, payment status, and document uploads without a phone call at all - check your state's UI website before dialing. QDo these numbers work for pandemic-era programs like PUA or PEUC? AThese are the standard contact numbers for regular state unemployment insurance (UI) claims. Federal pandemic-era programs (PUA, PEUC, FPUC) ended years ago and are no longer active in any state, so claims related to them are not being processed. **Categories:** Government Rebates and Payments --- ### [Maximum State Disability and Paid Leave Benefits by State in 2026](https://savingtoinvest.com/maximum-weekly-state-disability-insurance-benefit-and-coverage/) **Published:** January 1, 2016 **Author:** Andy **Content:** ### Key Takeaways - Only five states - California (CA), Hawaii (HI), New Jersey (NJ), New York (NY), and Rhode Island (RI) - run a traditional State Disability Insurance (SDI) program funded through employee payroll deductions. - A separate and growing group of states run Paid Family and Medical Leave (PFML) programs, which also replace wages for your own serious health condition, not just for bonding with a new child or caring for a family member. - California's 2026 maximum weekly SDI benefit is $1,765, the highest in the country, while New York's decades-old $170 cap is the lowest - and hasn't increased in years. - Most states - roughly two-thirds of the country - still have neither program, leaving unpaid federal FMLA leave (job protection, no wage replacement) as the only option for workers there. - Delaware and Minnesota both launched new paid leave programs on January 1, 2026, joining a list that keeps growing most years. Only five states run a true State Disability Insurance (SDI) program: California (CA), Hawaii (HI), New Jersey (NJ), New York (NY), and Rhode Island (RI). If you get sick or injured and can’t work — for reasons unrelated to your job — these are the only states with a mandatory, payroll-funded benefit built specifically for that. A separate, faster-growing group of states run Paid Family and Medical Leave (PFML) programs instead, which typically cover both your own serious health condition and time off to bond with a new child or care for a family member, usually at a higher wage-replacement rate than the older SDI programs. Below is where every state that has either program stands for 2026, plus which states still have neither. Covered in this Article: [Toggle](#) - [Traditional State Disability Insurance (SDI) — 2026 Maximum Weekly Benefit](#Traditional_State_Disability_Insurance_SDI_%E2%80%94_2026_Maximum_Weekly_Benefit) - [State Paid Family & Medical Leave (PFML) Programs — 2026 Maximum Weekly Benefit](#State_Paid_Family_Medical_Leave_PFML_Programs_%E2%80%94_2026_Maximum_Weekly_Benefit) - [What About the Rest of the Country?](#What_About_the_Rest_of_the_Country) - [Two Examples](#Two_Examples) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) ## Traditional State Disability Insurance (SDI) — 2026 Maximum Weekly Benefit StateMax Weekly BenefitFunded ByNotesCalifornia (CA)$1,765Employee payroll deductionUp from $1,681 in 2025; also covers Paid Family LeaveRhode Island (RI)$1,150Employee payroll deductionEffective July 2026 benefit yearNew Jersey (NJ)$1,119Employee/employer payroll deductionUp to 85% of average weekly wageHawaii (HI)$871Employer-provided (employee contribution capped)58% of average weekly wage, up to the capNew York (NY)$170Employer/employee payroll deductionUnchanged for years; a bill (S3235) would raise it toward the PFL rate over four years New York’s $170 maximum is the clearest outlier on this list — it hasn’t kept pace with wages in any meaningful way, and Albany lawmakers have introduced legislation to phase it up toward the state’s much higher Paid Family Leave maximum over several years. I’ll update this section if that bill moves. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get notified when any of these state figures change.* ## State Paid Family & Medical Leave (PFML) Programs — 2026 Maximum Weekly Benefit StateMax Weekly BenefitStatusWashington (WA)$1,647Active; up from $1,542 in 2025Oregon (OR)$1,636.56ActiveColorado (CO)$1,381.45Active (FAMLI program)Minnesota (MN)$1,423New for 2026 — first state to launch contributions and benefits simultaneouslyMassachusetts (MA)$1,230.29ActiveWashington, D.C.$1,190ActiveNew Jersey (NJ)$1,119Same program funds both TDI and family leaveNew York (NY)$1,228.53Separate from the $170 DBL cap above — this is the PFL side of NY’s programDelaware (DE)$900New for 2026 — capped at $900/week through 2027 under the Healthy Delaware Families ActConnecticut (CT)$1,016.40Active Maryland has a program on the books, but it doesn’t start collecting contributions until 2027 and won’t pay benefits until 2028, so it isn’t live yet for 2026. A handful of other states have proposals under discussion but nothing enacted. ## What About the Rest of the Country? If your state isn’t on either table above, it doesn’t run a state disability or paid leave program — you’re generally limited to unpaid job-protected leave under the federal Family and Medical Leave Act (FMLA), plus whatever short-term disability coverage your employer voluntarily offers. That’s still the majority of states as of 2026, though the list of states adding programs has grown steadily over the past decade. ## Two Examples **Elena**, a graphic designer in New Jersey, is out of work for eight weeks after surgery. NJ’s TDI program replaces up to 85% of her average weekly wage, capped at $1,119/week — a meaningful cushion most of the country doesn’t have access to. **Tom**, an accountant in a state with neither SDI nor PFML, needs six weeks off after a medical procedure. His only guaranteed protection is unpaid FMLA leave — job security, but no wage replacement — so he relies entirely on whatever short-term disability policy his employer chose to offer, if any. ## Common Issues to Watch Out For I hear from readers confused about this topic more than almost any other government benefit question. **Confusing SDI/PFML with unemployment insurance.** These are entirely separate programs with separate funding, separate agencies, and separate eligibility rules — disability and paid leave programs pay you while you’re employed but temporarily unable to work; unemployment pays you after you’ve lost a job. **Assuming your state has a program because a nearby state does.** Coverage is genuinely a patchwork — two neighboring states can have completely different benefits, or none at all. **Not realizing “disability” here means short-term, not permanent.** These state programs are for temporary conditions with an expected return to work — long-term or permanent disabilities are generally handled through Social Security Disability Insurance (SSDI) instead. **Missing the base-period earnings requirement.** Most programs require a minimum amount of earnings during a “base period” (usually the prior 12 months) before you qualify for the maximum benefit — check your specific state’s formula rather than assuming you’ll get the listed maximum automatically. ## Looking Ahead: 2027 Outlook Expect most of the states above to announce modest increases to their 2027 maximum weekly benefits late in 2026, typically tied to that state’s average weekly wage growth. Delaware and Minnesota, both brand new for 2026, are the ones most likely to see their caps adjust meaningfully once a full year of claims data comes in. I’ll also be watching New York’s DBL reform bill — if it passes, it would be the biggest single change to any state’s SDI benefit in years. **Related reading:** - [Max State Unemployment Benefits by State](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/) - [Can You Afford to Start a Family in 2026?](https://savingtoinvest.com/can-you-afford-to-start-a-family-important-financial-questions-to-consider/) - [2027 COLA Social Security Raise](https://savingtoinvest.com/social-security-tax-and-cost-of-living-adjustment-cola/) Frequently Asked Questions QWhich states have a true State Disability Insurance program? AOnly five: California, Hawaii, New Jersey, New York, and Rhode Island. Each is funded through payroll deductions and covers a worker's own short-term, non-work-related disability. QWhat's the difference between SDI and Paid Family and Medical Leave (PFML)? ASDI traditionally covers only your own disability. Newer PFML programs, run by states like Washington, Colorado, and Massachusetts, typically cover both your own serious health condition and leave to bond with a new child or care for a family member, usually at a higher benefit cap. QWhat is California's 2026 maximum weekly SDI benefit? A$1,765 per week, up from $1,681 in 2025 - the highest maximum benefit of any state program. QWhy is New York's disability benefit only $170 a week? ANew York's Disability Benefits Law cap hasn't been increased in years, unlike the state's separate Paid Family Leave program, which pays up to $1,228.53 a week. A pending bill would gradually raise the DBL cap. QWhat happens if my state has no disability or paid leave program? AYou're generally limited to unpaid, job-protected leave under the federal FMLA (if you're eligible), plus any short-term disability coverage your employer chooses to offer voluntarily. **Categories:** Taxes and Retirement --- ### [Can You Afford to Start a Family in 2026? The Real Numbers and the New $1,000 Baby Bonus](https://savingtoinvest.com/can-you-afford-to-start-a-family-important-financial-questions-to-consider/) **Published:** July 17, 2011 **Author:** Andy **Content:** ### Key Takeaways - The USDA estimates a median-income family now spends roughly $307,000-$310,000 raising a child from birth to age 17, before college - and that's before regional cost differences. - Full-time infant daycare averages about $1,230 a month nationally, and can exceed $2,000 a month in expensive metro areas - often the single biggest line item after housing. - Every child born in 2025 through 2028 automatically gets a $1,000 'Trump Account' contribution from the federal government, seeded through the OBBB, on top of whatever the family contributes. - Paid parental leave varies enormously by state - some states now guarantee 12+ weeks of partial wage replacement, while most of the country still relies only on unpaid FMLA leave. - Start a dedicated baby fund before the birth, not after - the biggest financial shock usually hits in the first few months, well before your regular budget has adjusted. Raising a child from birth to age 17 now costs a median-income family an estimated $307,000 to $310,000, according to USDA-based estimates updated for 2026 — and that figure doesn’t include college. In high-cost states like Massachusetts, California, or New York, it can run $400,000 to $500,000. That’s a real number to sit with before deciding you’re financially ready. But it’s also not the whole picture — how you plan for the first year matters as much as the lifetime total, and a few recent changes make the math a little more favorable than it used to be. Covered in this Article: [Toggle](#) - [Where the Money Actually Goes](#Where_the_Money_Actually_Goes) - [The New $1,000 Trump Account Baby Bonus](#The_New_1000_Trump_Account_Baby_Bonus) - [Income Replacement Around the Birth](#Income_Replacement_Around_the_Birth) - [Two Examples](#Two_Examples) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: What I’m Watching](#Looking_Ahead_What_Im_Watching) ## Where the Money Actually Goes Housing is the largest single category at roughly 29% of child-related spending, followed by food at about 18% and childcare/education at around 16%. Childcare in particular front-loads hard: full-time infant center care averages about $1,230 a month nationally, dropping to roughly $1,080 for toddlers and $920 for preschoolers. Depending on your state, center-based daycare from birth through kindergarten alone can add $50,000 to $130,000 before a child ever starts school. That’s worth budgeting for years in advance if you can. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates on family financial planning topics like this.* ## The New $1,000 Trump Account Baby Bonus One genuinely new piece of the puzzle: every child born in the U.S. between 2025 and 2028 automatically gets a $1,000 federal seed deposit into a “Trump Account,” a tax-advantaged investment account created under the One Big Beautiful Bill (OBBB). Parents (and others) can then contribute additional after-tax dollars on top of that seed amount, and the funds grow tax-deferred until the child reaches adulthood. It’s not going to offset a $300,000 lifetime cost on its own, but treated as an early, automatic head start on long-term savings, it’s a real (if modest) tailwind that didn’t exist for parents even a year ago. I go through exactly how the account works, contribution rules, and what happens at withdrawal in [Trump Accounts: The $1,000 American Baby Bonus, Explained](https://savingtoinvest.com/trump-accounts-creating-a-generation-of-savers-with-the-1000-american-baby-bonus/). ## Income Replacement Around the Birth Before the baby arrives, check with your employer about short-term disability coverage, which typically replaces 60–70% of income for about six weeks around birth or a medical leave. If you don’t have employer-paid leave, federal law (FMLA) guarantees up to 12 weeks unpaid for eligible employees — job protection, but no income replacement. Where you live matters a lot here. A growing number of states now run their own paid family and medical leave programs that replace a meaningful share of wages during parental leave, on top of or instead of employer plans — and several more launch new programs in 2026. I cover exactly which states have paid programs, and their current maximum weekly benefit amounts, in [State Disability and Paid Leave Benefits by State](https://savingtoinvest.com/maximum-weekly-state-disability-insurance-benefit-and-coverage/). ## Two Examples **Priya and Dan**, expecting their first child, live in a state with no paid family leave program. Priya’s employer offers six weeks of short-term disability at 65% of pay. They build a $6,000 baby fund over 10 months of $600 automatic transfers specifically to cover the income gap during her unpaid portion of leave, plus first-month baby expenses. **Marcus**, a new father in a state with a paid leave program, receives 12 weeks at roughly 80% wage replacement up to the state cap. Because his income disruption is smaller, he redirects what would have been his baby-fund contribution into his child’s Trump Account instead, on top of the automatic $1,000 federal seed deposit. ## Common Issues to Watch Out For I hear from readers at every stage of this, and a few mistakes come up repeatedly. **Underestimating the first three months, specifically.** Medical bills, one-time gear purchases (car seat, crib, stroller), and lost income all cluster right around the birth — the annual “average” spending figure understates how lopsided the first quarter is. **Not checking employer benefits until it’s too late.** Short-term disability, FSA dependent care limits, and paid leave policies are often easiest to confirm and enroll in during open enrollment, well before you’re planning a pregnancy. **Combining insurance policies without comparing the actual bundled price.** Bundling health, auto, and home coverage under one insurer can lower premiums, but always get a side-by-side quote first — bundling isn’t automatically cheaper. **Treating the Trump Account seed deposit as covering meaningful college costs.** $1,000 growing tax-deferred over 18 years helps, but it’s a head start, not a college fund — most families will still need a dedicated 529 plan for that goal. ## Looking Ahead: What I’m Watching The Trump Account program runs for children born 2025 through 2028 under current law; whether it gets extended or made permanent is a live policy question I’ll track here. On the paid-leave side, more states have programs launching or expanding benefit caps in 2026 and 2027, so if your state doesn’t have one yet, it’s worth checking annually — this is one of the faster-moving areas of state policy right now. **Related reading:** - [Trump Accounts: The $1,000 American Baby Bonus, Explained](https://savingtoinvest.com/trump-accounts-creating-a-generation-of-savers-with-the-1000-american-baby-bonus/) - [State Disability and Paid Leave Benefits by State](https://savingtoinvest.com/maximum-weekly-state-disability-insurance-benefit-and-coverage/) - [Budgeting Pitfalls in 2026 — Why Most Budgets Fail and How to Fix It](https://savingtoinvest.com/budgeting-pitfalls-and-remedies/) - [Child Tax Credit (CTC) Income Thresholds](https://savingtoinvest.com/child-and-kiddie-tax-credit-and-income-thresholds/) Frequently Asked Questions QHow much does it cost to raise a child through age 17 in 2026? AUSDA-based estimates put it at roughly $307,000 to $310,000 for a median-income family, not including college - higher in expensive states, lower in lower cost-of-living states. QWhat is a Trump Account and do I need to do anything to get one? AIt's a tax-advantaged investment account automatically seeded with $1,000 by the federal government for every child born from 2025 through 2028 under the One Big Beautiful Bill. Parents can add after-tax contributions on top of the seed amount. QDoes every state offer paid parental leave? ANo. A growing but still limited number of states run mandatory paid family and medical leave programs with meaningful wage replacement; most of the country relies on unpaid federal FMLA leave plus whatever an employer voluntarily offers. QWhat's the biggest expense in a baby's first year? AChildcare typically becomes the largest recurring expense once parental leave ends, with full-time infant center care averaging around $1,230 a month nationally. One-time costs (medical bills, gear) also cluster heavily in the first few months. QHow far in advance should I start saving before having a baby? AAs early as possible - ideally a dedicated baby fund built up over several months to a year before the due date, specifically sized to cover any unpaid portion of leave plus first-month expenses. **Categories:** Career and Relationships --- ### [10 Frivolous Tax Arguments the IRS Has Already Shot Down — And the $5,000 Penalty for Trying](https://savingtoinvest.com/10-frivolous-tax-avoidance-arguments/) **Published:** February 10, 2010 **Author:** Andy **Content:** ### Key Takeaways - The IRS updates its official 'Truth About Frivolous Tax Arguments' document annually, rebutting the most common arguments people use to try to avoid paying federal income tax. - Filing a frivolous return or submission carries a $5,000 penalty per return under Internal Revenue Code Section 6702 - a rule that's been in place since a 2006 law increased it from $500. - Courts have uniformly rejected every argument on this list, some going back decades, and continue to penalize taxpayers and preparers who repeat them. - 'Voluntary compliance' refers to self-assessing your tax correctly, not to whether you're required to file at all - filing is legally mandatory. - If you're unsure whether a tax strategy you've heard about is legitimate or frivolous, check it against the IRS's official list before acting on it. Each year the IRS updates its official rebuttal of the most common arguments made by people who claim they aren’t required to pay federal income tax. It’s called [The Truth About Frivolous Tax Arguments](https://www.irs.gov/privacy-disclosure/the-truth-about-frivolous-tax-arguments-introduction), and filing a return based on one of these positions carries a $5,000 penalty per return under Section 6702 — a rule Congress increased from $500 back in 2006. Here are ten of the arguments I found most notable, alongside the IRS’s actual rebuttal for each. > Like moths to a flame, some people find themselves irresistibly drawn to the tax protester movement’s illusory claim that there is no legal requirement to pay federal income tax. And, like moths, these people sometimes get burned. **Contention #1: Filing a tax return is voluntary.** Some point to IRS language describing the tax system as “voluntary” as proof that filing itself is optional. **Fact:** “Voluntary” refers to the system of allowing taxpayers to initially determine and report their own correct tax, rather than having the government calculate it for them from the outset. The requirement to file a return is not voluntary and is set out clearly in the tax code. **Contention #2: You can reduce your tax liability by filing a “zero return.”** Some taxpayers file a return reporting no income and no tax liability despite having taxable income, then request a refund of any withheld tax. **Fact:** There is no legal authority permitting a taxpayer with taxable income to avoid tax by filing a zero return. Courts have repeatedly penalized this argument as frivolous. **Contention #3: Wages aren’t income.** This argument claims that wages aren’t taxable because there’s supposedly no “gain” when labor is exchanged for money, or that the Sixteenth Amendment only authorized a tax on profit, not wages. **Fact:** Gross income includes all income from whatever source derived, including compensation for services, unless specifically exempted by law. Any other reading has been rejected by the courts. **Contention #4: I’m not a “citizen” of the United States, so I’m not subject to federal tax law.** Some argue they’ve rejected U.S. citizenship in favor of state-only citizenship to escape federal tax obligations. **Fact:** The Fourteenth Amendment establishes simultaneous state and federal citizenship for anyone born or naturalized in the U.S. Claims of being solely a state citizen, exempt from federal tax, have been uniformly rejected by courts. **Contention #5: Only federal government employees owe federal income tax.** This misreads the tax code’s definition of “employee” as limited to government workers. **Fact:** The code’s use of “includes” is a term of enlargement, not limitation — it makes federal employees part of the definition without excluding private-sector employees, who are generally included as well. **Contention #6: The First or Fifth Amendment lets me refuse to pay taxes.** Some argue religious objection, moral objection to how tax dollars are spent, or self-incrimination concerns exempt them from filing or paying. **Fact:** Neither amendment provides a right to refuse to pay income tax on religious, moral, or self-incrimination grounds, and courts have consistently rejected these arguments. **Contention #7: The IRS isn’t a real federal agency.** Some claim the IRS is a private corporation because it wasn’t created by a specific act of Congress. **Fact:** The Secretary of the Treasury has statutory authority to administer and enforce tax law and to create an agency to do so — which is exactly how the IRS was established, under authority explicitly granted by Congress. **Contention #8: I’m entitled to a refund of all the Social Security tax I ever paid.** Proponents encourage people to claim refunds of lifetime Social Security taxes by “waiving” their future benefits. **Fact:** No provision in the tax code or any other law allows a refund of Social Security taxes on this basis. **Contention #9: A tax lien is invalid if unsigned or improperly delegated.** Some challenge liens on the basis of missing signatures or authority. **Fact:** Federal law controls the form of a tax lien notice, and there’s no requirement that it be signed to be valid. **Contention #10: The Tax Court can’t decide legal issues.** This challenges the authority of the U.S. Tax Court itself. **Fact:** The Tax Court is a federal court established by Congress under Article I of the Constitution, with clear jurisdiction over tax disputes, worker classification, collection actions, and more. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates on tax topics like this.* ## Common Issues to Watch Out For I still get questions rooted in versions of these arguments, usually secondhand from a friend, forum, or “tax expert” online. **Confusing tax avoidance with tax evasion.** Legitimate tax planning — maximizing deductions, using retirement accounts, timing income — is legal and encouraged. Frivolous arguments claim you owe nothing at all on a legal technicality, which is a different (and penalized) thing entirely. **Assuming a plausible-sounding argument must have some basis.** Many of these contentions cite real amendments, sections, or terms, but twist their meaning. That surface-level legitimacy is exactly what makes them convincing to people who haven’t checked the source. **Not realizing the penalty applies per return, and stacks.** The $5,000 frivolous filing penalty applies separately to each frivolous return or submission — repeat filers can accumulate substantial penalties quickly. **Related reading:** - [Why Is It Taking So Long to Get My Tax Refund?](https://savingtoinvest.com/why-is-it-taking-so-long-to-get-my-tax-refund/) - [2026-2027 Federal IRS Tax Brackets and Rates](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/) - [When Can I File My Taxes in 2027?](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/) Frequently Asked Questions QIs it illegal to file a 'zero return' claiming no income? AYes, if you actually had taxable income. Courts have repeatedly penalized this as a frivolous argument, and it does not entitle you to a refund of withheld taxes. QWhat is the penalty for filing a frivolous tax return? A$5,000 per return under Internal Revenue Code Section 6702, a penalty Congress raised from $500 in 2006. It applies to returns and certain other frivolous submissions. QDoes 'voluntary compliance' mean filing taxes is optional? ANo. It refers to the system letting taxpayers self-assess their own correct tax in the first instance, rather than the government calculating it for them. Filing a return is a legal requirement, not a voluntary choice. QCan I refuse to pay taxes for religious or moral reasons? ANo. Courts have consistently held that neither the First Amendment nor any other constitutional provision exempts taxpayers from federal income tax based on religious or moral objections. QWhere can I find the IRS's official list of frivolous tax positions? AThe IRS publishes and annually updates 'The Truth About Frivolous Tax Arguments' on IRS.gov, which addresses dozens of positions the agency has identified as frivolous, along with the legal basis for rejecting each. **Categories:** Taxes and Retirement --- ### [Portfolio Diversification in 2026 — How Much Is Actually Enough?](https://savingtoinvest.com/importance-of-diversification/) **Published:** May 9, 2008 **Author:** Andy **Content:** ### Key Takeaways - Diversification doesn't eliminate risk or guarantee a profit - it limits how much damage any single stock, sector, or asset class can do to your overall portfolio. - A common rule of thumb: if any single position grows to more than 15-20% of your total portfolio, it's worth a rebalancing conversation, even if it's your best performer. - Rebalancing means selling some of what's done well and buying more of what hasn't - which is emotionally uncomfortable but is also the mechanical version of 'buy low, sell high.' - Concentration risk sneaks up on people during bull runs. A portfolio that started diversified can quietly become concentrated in whatever sector has been rallying, without you adding a single new trade. - Review your allocation on a set schedule (quarterly or semi-annually) rather than only after a downturn - by then, the concentration has already done its damage. Diversification won’t stop you from losing money, and it won’t guarantee a profit either. What it does is limit how much damage any single stock, sector, or asset class can do to your overall portfolio when things go wrong — and something always eventually goes wrong somewhere. Here’s how to actually check whether you’re diversified, and what to do about it when you’re not. Covered in this Article: [Toggle](#) - [Why Concentration Sneaks Up On You](#Why_Concentration_Sneaks_Up_On_You) - [How to Check Your Own Concentration](#How_to_Check_Your_Own_Concentration) - [Rebalancing: The Uncomfortable Part](#Rebalancing_The_Uncomfortable_Part) - [What Diversification Actually Protects Against](#What_Diversification_Actually_Protects_Against) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## Why Concentration Sneaks Up On You Nobody sets out to build a concentrated portfolio. It happens gradually: one sector or stock outperforms for a while, and without adding a single new trade, it grows to represent a larger and larger share of your total holdings. This is exactly what happened to a lot of portfolios heavy in financial or technology stocks heading into the 2008 and 2020 downturns — years of outperformance had quietly concentrated risk that investors didn’t fully register until the sector reversed. A portfolio that started genuinely diversified can become concentrated purely through one part growing faster than the rest. ## How to Check Your Own Concentration Look at your total portfolio — across all accounts, not just one brokerage — and calculate what percentage each individual stock, sector, or asset class represents. A simple spreadsheet works fine; most brokerages also show this breakdown natively now. A common rule of thumb: if any single stock exceeds roughly 15-20% of your total portfolio, or any single sector exceeds 25-30%, it’s worth a deliberate decision rather than an accident. That doesn’t mean you must sell — maybe you’re comfortable with the concentration — but you should be choosing it, not drifting into it. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates.* ## Rebalancing: The Uncomfortable Part Once you’ve identified concentration, rebalancing means trimming the position that’s grown too large and redirecting that money to underweighted parts of your portfolio. This is mechanically simple and emotionally hard — it means selling some of your winner and buying more of what’s lagged. That discomfort is the point. Rebalancing is the disciplined version of “buy low, sell high,” done on a schedule rather than based on a feeling about where the market is headed next. It also converts paper gains into realized ones, which matters if a big pullback erases unrealized profits you never locked in. A quarterly or semi-annual review works well for most people — frequent enough to catch drift before it becomes a real problem, infrequent enough to avoid overtrading or triggering unnecessary short-term capital gains. ## What Diversification Actually Protects Against Diversification spreads your exposure across asset classes (stocks, bonds, cash), sectors (tech, financials, healthcare, energy), and geographies (US, international) so that a downturn concentrated in one area doesn’t take your whole portfolio with it. It doesn’t protect against a broad market decline that hits nearly everything — 2008 and 2020 both saw most asset classes fall together, at least briefly. What it does is reduce the odds that one bad sector call wipes out years of gains, and it gives you exposure to whatever happens to be performing well at any given time, since you’re not betting everything on a single outcome. ## Common Issues to Watch Out For I get questions about this a lot, so here’s what trips people up most often. **Confusing “many stocks” with “diversified.”** Owning 20 tech stocks isn’t diversification — it’s concentration in a single sector spread across more tickers. True diversification spans sectors and asset classes, not just position count. **Letting winners run indefinitely without a plan.** It feels wrong to trim a stock that’s making you money. But the whole point of rebalancing is capturing gains and controlling risk before a reversal does it for you involuntarily. **Only rebalancing after a downturn.** Checking your allocation for the first time after a sector crashes is checking too late. Put it on a calendar, not a reaction. **Ignoring correlation between “different” holdings.** Several funds with different names can still hold heavily overlapping stocks. Check underlying holdings, not just fund labels, before assuming you’re diversified. **Related reading:** - [The Power of Compounding](https://savingtoinvest.com/power-of-compounding-1-million-now-or/) - [Gold Price Outlook](https://savingtoinvest.com/gold-price-outlook-golden-investment-in/) - [Eight Things Not to Do With Your 401(k) and IRA](https://savingtoinvest.com/what-not-to-do-with-your-401k-and-ira/) - [Capital Gains Tax Rates — Short and Long Term](https://savingtoinvest.com/capital-gains-tax-short-and-long-term-rates-plus-other-factors-to-consider/) Frequently Asked Questions QDoes diversification guarantee I won't lose money? ANo. Diversification reduces the risk of a single stock or sector causing outsized damage to your portfolio, but it doesn't eliminate market risk or guarantee a profit, especially during broad market declines. QHow much of my portfolio should be in a single stock? AThere's no universal rule, but many advisors suggest treating anything above roughly 15-20% of your total portfolio in a single stock as a signal to reconsider your position size, even if it's performing well. QHow often should I rebalance my portfolio? AQuarterly or semi-annual reviews work well for most people - frequent enough to catch drift early, infrequent enough to avoid excessive trading or unnecessary short-term capital gains taxes. QIs owning many different stocks the same as being diversified? ANot necessarily. If those stocks are concentrated in one sector or highly correlated with each other, you may have position count without real diversification. True diversification spans asset classes, sectors, and geographies. QWhy is rebalancing emotionally difficult? ABecause it means selling some of your best-performing holdings and buying more of your worst-performing ones - the opposite of how it feels natural to react. That discomfort is exactly what makes it a disciplined, rather than emotional, decision. **Categories:** Finance and Investing 101 --- ### [TIPS in 2026 — Current Real Yields and Whether They Still Make Sense](https://savingtoinvest.com/how-and-why-to-buy-treasury-inflation/) **Published:** September 28, 2009 **Author:** Andy **Content:** ### Key Takeaways - 10-year TIPS were yielding a real (after-inflation) return of roughly 2.3% as of July 2026 - a meaningfully positive real return, unlike much of the low-rate period from 2020-2022. - TIPS principal adjusts with CPI inflation, and the fixed coupon is paid on that adjusted principal - so both your principal and interest payments rise (or fall, in deflation) with inflation. - TIPS interest is exempt from state and local tax but fully taxable federally - and taxed annually even on individual bonds, which makes tax-advantaged accounts the more efficient home for them. - The 'breakeven rate' (the yield gap between a regular Treasury and a same-maturity TIPS) tells you what inflation rate the market is pricing in - TIPS only outperform if actual inflation runs hotter than that breakeven. - TIPS aren't a replacement for a high-yield savings account or emergency fund - they're a longer-duration inflation hedge, with real market-price risk if sold before maturity. 10-year TIPS were yielding a real, after-inflation return of roughly 2.3% as of July 2026, according to Federal Reserve data. That’s a genuinely positive real return — a different environment than 2020-2022, when TIPS yields were negative or barely positive. Here’s how TIPS actually work, what today’s yields mean in practice, and when they make more sense than a plain savings account or regular Treasury. Covered in this Article: [Toggle](#) - [How TIPS Work](#How_TIPS_Work) - [What Today’s Yields Actually Mean](#What_Todays_Yields_Actually_Mean) - [The Risks](#The_Risks) - [Direct TIPS vs. TIPS Funds](#Direct_TIPS_vs_TIPS_Funds) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## How TIPS Work Treasury Inflation-Protected Securities are government bonds whose principal adjusts with the Consumer Price Index (CPI). When CPI rises, the bond’s principal increases; in deflation, it decreases — though a TIPS bond held to maturity is guaranteed to return at least its original face value. TIPS pay a fixed coupon rate every six months, but that coupon is applied to the *adjusted* principal — so as inflation pushes the principal up, your actual dollar interest payments rise too. This is the core mechanism: TIPS protect both principal and income against inflation, not just principal. TIPS are auctioned in 5-, 10-, and 20-year maturities directly through TreasuryDirect.gov, with no brokerage fee for direct purchases. ## What Today’s Yields Actually Mean The 10-year TIPS real yield sat around 2.3% as of July 2026, with the 2-year around 2.1%. Compare that to a plain 10-year Treasury, and the yield gap — called the breakeven rate — tells you what inflation rate the market expects over that period. If actual inflation runs hotter than the breakeven rate, TIPS come out ahead of an equivalent regular Treasury. If inflation runs cooler, the plain Treasury wins. With CPI inflation running around 4.2% year-over-year as of May 2026 — above the roughly 2-2.5% breakeven rates common in recent auctions — TIPS have been performing well against that backdrop, though breakevens shift with every auction. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get updates as rates shift.* ## The Risks TIPS underperform in low-inflation or deflationary environments, since you’re giving up the fixed yield of a regular Treasury in exchange for inflation protection you don’t end up needing. If you buy at a price above face value and sell before maturity in a low-inflation stretch, you can also realize a real loss. There’s also a tax quirk worth knowing: the annual increase in a TIPS bond’s principal from inflation adjustments is taxable as income in the year it happens, even though you don’t receive that money until maturity or sale. This “phantom income” problem is a major reason planners generally recommend holding individual TIPS inside a tax-advantaged account like an IRA or 401(k) rather than a taxable brokerage account. ## Direct TIPS vs. TIPS Funds **Buying directly** through TreasuryDirect.gov avoids brokerage fees, but principal gains aren’t distributed until maturity — you’re on the hook for the phantom-income tax issue described above in a taxable account. **TIPS mutual funds or ETFs** (like Vanguard’s Short-Term Inflation-Protected Securities ETF, VTIP) hold a mix of maturities and distribute gains regularly rather than at a single maturity date, which can simplify the tax picture somewhat, though fund-level gains and losses still flow through to you. ETFs trade throughout the day like stocks; mutual funds are better suited to regular, fee-free contributions. ## Common Issues to Watch Out For I get questions about this a lot, so here’s what trips people up most often. **Buying TIPS in a taxable account without knowing about phantom income.** The inflation adjustment to principal is taxed annually even though you haven’t received that cash yet — a real account, but a tax bill on money you don’t have in hand. **Assuming TIPS always beat regular Treasuries.** They only win if actual inflation outpaces the breakeven rate priced in at purchase. In a low-inflation stretch, a plain Treasury with a higher fixed coupon can outperform. **Treating TIPS as a cash substitute.** TIPS have real duration risk and can lose market value before maturity if sold early, unlike an FDIC-insured savings account or CD. **Confusing TIPS with I Bonds.** Both are inflation-protected Treasury products, but I Bonds are purchased directly (capped at $10,000/year per person), can’t be sold on a secondary market, and have different tax and redemption rules than marketable TIPS. **Related reading:** - [The Power of Compounding](https://savingtoinvest.com/power-of-compounding-1-million-now-or/) - [The Importance of Portfolio Diversification](https://savingtoinvest.com/importance-of-diversification/) - [Capital Gains Tax Rates — Short and Long Term](https://savingtoinvest.com/capital-gains-tax-short-and-long-term-rates-plus-other-factors-to-consider/) - [Eight Things Not to Do With Your 401(k) and IRA](https://savingtoinvest.com/what-not-to-do-with-your-401k-and-ira/) Frequently Asked Questions QWhat is the current TIPS yield? A10-year TIPS real yields were running around 2.3% as of July 2026, with 2-year TIPS around 2.1%. These change with every Treasury auction, so check current data before making a decision. QHow is TIPS interest taxed? ATIPS interest is exempt from state and local tax but fully taxable at the federal level. The annual inflation adjustment to the bond's principal is also taxed as income each year, even though you don't receive that cash until maturity or sale - this is often called phantom income. QWhat's the difference between TIPS and I Bonds? ABoth adjust for inflation, but TIPS are marketable securities you can buy in any amount and trade on the secondary market before maturity. I Bonds are non-marketable, capped at $10,000 per person per year, and can't be sold to another investor. QDo TIPS always outperform regular Treasury bonds? ANo. TIPS only outperform an equivalent-maturity regular Treasury if actual inflation runs hotter than the 'breakeven rate' priced in when you bought the TIPS. In a low-inflation environment, a plain Treasury can outperform. QWhere should I hold TIPS to avoid the tax issue? AMany financial planners recommend holding individual TIPS inside a tax-advantaged account like a traditional or Roth IRA, since the annual inflation-adjustment income is taxed whether or not you've received the cash - a bigger issue in a taxable brokerage account. **Categories:** ETFs and Mutual Funds, Saving and Investing ideas **Tags:** Inflation, Protection, TIPS --- ### [Budgeting Pitfalls in 2026 — Why Most Budgets Fail and How to Fix It](https://savingtoinvest.com/budgeting-pitfalls-and-remedies/) **Published:** December 27, 2008 **Author:** Andy **Content:** ### Key Takeaways - Inflation was running around 4.2% year-over-year as of May 2026 - the highest since 2023 - which means a budget built even a year ago is likely already out of date. - Budgeting doesn't reduce spending by itself. It only works when you actually act on what it shows you, and that's the step most budgets skip. - Food, subscriptions, and 'miscellaneous' categories are consistently where budgets leak - not from one big purchase, but from many small ones that don't register individually. - A 'budget' with a catch-all miscellaneous category is really just a guess. Breaking it into specific categories (groceries, gifts, auto, medical) is what makes a budget actually predictive. - No emergency cushion means every surprise expense goes straight back onto a credit card, undoing months of budgeting progress in one bad week. Inflation was running around 4.2% year-over-year as of May 2026, the highest reading since 2023. If your budget’s numbers are from last year — or longer — they’re already stale, and that gap is usually where the “I don’t know where my money went” feeling comes from. Budgeting itself doesn’t cut your spending. Tracking income and expenses just tells you what happened — the actual savings comes from what you do with that information. Here’s where most budgets break down, and the fixes that hold up. Covered in this Article: [Toggle](#) - [Why Budgets Fail](#Why_Budgets_Fail) - [Where Budgets Actually Leak](#Where_Budgets_Actually_Leak) - [Fixes That Actually Stick](#Fixes_That_Actually_Stick) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## Why Budgets Fail The single biggest reason a budget fails isn’t a lack of tracking — it’s a lack of follow-through. People build a spreadsheet, see where the money went, and then keep spending the same way anyway. The budget becomes a record of what happened rather than a tool that changes what happens next. The second most common failure is treating a budget as a one-time project instead of an ongoing conversation with your own spending. A budget built in January and never revisited is stale by summer, especially in a year with inflation running above 4%. ## Where Budgets Actually Leak **Food.** Eating out even once a week adds up faster than most people estimate. Planning meals a week ahead and batch-cooking cuts this significantly without eliminating it entirely. **Small recurring purchases.** A coffee, a subscription, a soda — none of these register as a “purchase” the way a big-ticket item does, but they compound into real money by month’s end. This is the category people are most consistently surprised by when they actually add it up. **The miscellaneous catch-all.** A budget with one broad “other” category is really a guess dressed up as a plan. Breaking it into specifics — groceries, household, medical, gifts, auto, subscriptions — turns a vague estimate into something you can actually track and predict. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates.* ## Fixes That Actually Stick **Switch to cash or a dedicated card for your leak categories.** If dining out or discretionary spending is where you consistently go over, moving that specific category to cash (or a separate card you can watch closely) makes the limit tangible instead of abstract. **Be accountable to someone.** Whether that’s a partner, a friend, or just a weekly 10-minute check-in with your own numbers, a regular review is what turns tracking into action. **Budget based on one income if you have two.** If you and a partner both work, building your budget around a single income (and treating the second as savings or debt payoff) creates a buffer against job loss, illness, or an unplanned leave. **Redirect windfalls before you feel them.** A refund, bonus, or unexpected check is the easiest money to lose to an impulse purchase — because it never felt like “your” money to begin with. Send it straight to savings or debt before it hits your regular spending account. ## Common Issues to Watch Out For I get questions about this a lot, so here’s what trips people up most often. **No emergency cushion.** Without savings set aside for the unexpected, a car repair or medical bill goes straight back onto a credit card — undoing months of budgeting progress in a single week. **Assuming a raise fixes the problem.** Spending tends to expand to match income unless you deliberately budget the increase toward savings or debt rather than lifestyle upgrades. **Cutting everything at once.** Trying to eliminate an entire spending category overnight (no eating out, ever) rarely sticks. A gradual reduction is more sustainable than an abrupt one. **Not adjusting for inflation.** With prices up meaningfully year over year, a grocery or gas budget set 12+ months ago is probably underfunded now — revisit dollar amounts at least twice a year, not just once. **Related reading:** - [How to Get Out of Debt](https://savingtoinvest.com/10-ways-to-get-out-of-debt-starting-now/) - [The Power of Compounding](https://savingtoinvest.com/power-of-compounding-1-million-now-or/) - [2026 Federal IRS Tax Brackets and Standard Deduction](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/) Frequently Asked Questions QWhy do most budgets fail? ANot from a lack of tracking, but from a lack of follow-through. A budget only helps if you act on what it shows you - otherwise it's just a record of spending you already did, not a tool that changes future spending. QWhat budget categories do people underestimate the most? AFood (especially eating out), small recurring purchases like subscriptions and coffee, and a catch-all 'miscellaneous' category. These leak money in small amounts that don't register individually but add up significantly by month's end. QShould I budget based on one income if my household has two earners? AMany financial planners suggest it as a safety buffer - budgeting around one income and treating the second as savings or debt payoff protects you if either income is disrupted by job loss or illness. QHow often should I update my budget? AAt least twice a year, and more often during periods of higher inflation. A budget with grocery or gas figures from over a year ago is likely underfunded given typical price increases. QWhat's the fastest way to fix a budget that's not working? ABreak broad categories (especially 'miscellaneous') into specifics you can actually track, move your biggest leak category to cash or a dedicated card, and build in an emergency cushion so unexpected expenses don't undo your progress. **Categories:** Personal Finance and Money **Tags:** budgeting, expenses, tracking --- ### [Dividend Reinvestment Plans (DRIPs): How They Work and Whether They're Worth It](https://savingtoinvest.com/dividend-reinvestment-plans-drips-great/) **Published:** August 29, 2008 **Author:** Andy **Content:** ### Key Takeaways - A DRIP automatically uses your dividend payments to buy more shares - often fractional shares, often with no brokerage fee - instead of paying the dividend out as cash. - You owe tax on reinvested dividends the year you receive them, even though you never see the cash. That surprises a lot of first-time DRIP investors. - Most brokerages now offer automatic dividend reinvestment on any dividend-paying stock or ETF in a regular account - you don't need a company-specific DRIP program anymore. - The main tradeoff: DRIPs remove your ability to redirect that cash elsewhere, and they add cost-basis tracking complexity if you're not using a broker that tracks it for you. - DRIPs work well alongside compounding - reinvested dividends buy shares that themselves pay future dividends, snowballing over time. A dividend reinvestment plan (DRIP) takes the cash dividend a stock or fund pays you and automatically uses it to buy more shares — instead of depositing it in your account as cash. It’s been around since the 1960s, and most brokerages now offer it as a free, one-time setting rather than something you sign up for company by company. Here’s how it actually works, the tax detail that catches people off guard, and when it makes sense to turn it off instead. Covered in this Article: [Toggle](#) - [How DRIPs Actually Work](#How_DRIPs_Actually_Work) - [The Tax Catch Most People Miss](#The_Tax_Catch_Most_People_Miss) - [Advantages](#Advantages) - [Disadvantages](#Disadvantages) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Where DRIPs Fit With Compounding](#Where_DRIPs_Fit_With_Compounding) ## How DRIPs Actually Work When a company or fund pays a dividend, you can typically choose to receive it as cash or have it automatically reinvested. If you choose reinvestment, the dividend buys more shares — including fractional shares — usually with no brokerage commission. Two flavors exist. **Company-run DRIPs** let you buy shares directly from the company, sometimes at a small discount (commonly 1-5%) to the market price, bypassing a broker entirely. **Broker-run dividend reinvestment** is simpler: your brokerage automatically reinvests dividends from any stock or ETF you hold in your account, at the market price, with no separate enrollment needed for each company. For most people today, the broker-run version is the practical option — it’s a single account-level setting rather than dozens of individual enrollments. ## The Tax Catch Most People Miss This is the detail that trips up new DRIP investors: reinvested dividends are still taxable income in the year you receive them, even though you never touched the cash. Qualified dividends (the kind most established dividend-paying U.S. stocks pay) are taxed at long-term capital gains rates — 0%, 15%, or 20% depending on your income — rather than ordinary income rates. But you still owe that tax for the year the dividend was paid, regardless of whether you took it as cash or reinvested it. In a tax-advantaged account like a Roth or traditional IRA, this doesn’t matter — but in a regular taxable brokerage account, it means a “phantom” tax bill on money you never saw. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates.* ## Advantages DRIPs make dollar-cost averaging automatic — every dividend payment becomes a small, disciplined stock purchase regardless of what the price is doing that day. There’s no minimum: you can start with a single share. Most broker-run DRIPs charge no transaction fee, so 100% of the dividend goes toward more shares. And because the purchase happens automatically, DRIPs remove the temptation to spend a dividend that shows up as “found money” in your cash balance — a trap I’ve fallen into myself in the past. ## Disadvantages The biggest one is cost-basis tracking. Every reinvested dividend is a new, small purchase with its own cost basis and holding period. Most major brokerages track this automatically now, but if you’re using an older paper-certificate DRIP or switch brokers, this record-keeping can get messy — especially across many years and many small purchase lots. The other tradeoff is flexibility. Reinvesting locks that cash into more of the same stock rather than letting you redirect it toward a different holding, rebalancing, or a near-term expense. If you’re retired and living off dividend income, or you want to actively rebalance your portfolio, automatic reinvestment may work against you. ## Common Issues to Watch Out For I get questions about this fairly often, so here’s what comes up most. **Forgetting reinvested dividends are taxable.** This is the single most common surprise — people assume no cash received means no tax owed. Not true outside a tax-advantaged account. **Losing track of cost basis on old paper DRIPs.** If you have decades of direct company-run DRIP purchases from before online brokerages tracked this automatically, gathering that history for a future sale can be a real project. Start now if you haven’t already. **Reinvesting dividends you actually need as income.** If dividends are part of your retirement income plan, automatic reinvestment isn’t the right default — check that your account is set to pay cash, not reinvest. **Assuming every stock offers a DRIP discount.** Direct company DRIP discounts (1-5% off market price) are increasingly rare. Most reinvestment today happens at the broker level, at the plain market price. ## Where DRIPs Fit With Compounding Reinvested dividends are one of the clearest real-world examples of [compounding](https://savingtoinvest.com/power-of-compounding-1-million-now-or/) at work: each reinvested dividend buys shares that themselves go on to pay future dividends. Over a long holding period, a meaningful chunk of a dividend stock’s total return comes from reinvested dividends rather than price appreciation alone. That’s also the diversification caveat: piling reinvested dividends into a single stock for decades can leave you overweight in one holding. Keep an eye on [overall portfolio balance](https://savingtoinvest.com/importance-of-diversification/) even while automatic reinvestment is running in the background. **Related reading:** - [The Power of Compounding](https://savingtoinvest.com/power-of-compounding-1-million-now-or/) - [The Importance of Portfolio Diversification](https://savingtoinvest.com/importance-of-diversification/) - [Capital Gains Tax Rates — Short and Long Term](https://savingtoinvest.com/capital-gains-tax-short-and-long-term-rates-plus-other-factors-to-consider/) - [Eight Things Not to Do With Your 401(k) and IRA](https://savingtoinvest.com/what-not-to-do-with-your-401k-and-ira/) Frequently Asked Questions QDo I owe taxes on dividends that are automatically reinvested? AYes, in a regular taxable brokerage account. Reinvested dividends are taxable in the year you receive them, even though the cash goes straight into more shares instead of your cash balance. This doesn't apply inside a Roth or traditional IRA. QWhat's the difference between a company DRIP and a broker DRIP? AA company-run DRIP buys shares directly from the company, sometimes at a small discount to market price. A broker-run DRIP is a setting on your brokerage account that automatically reinvests dividends from any stock or ETF you hold, at market price, with no per-company enrollment. QIs dividend reinvestment always the right choice? ANot always. It's a strong default for long-term growth investors who don't need the cash. It's usually the wrong setting if you rely on dividends for current income, or if you actively rebalance your portfolio and want control over where new money goes. QHow do I turn off dividend reinvestment? AMost brokerages let you toggle DRIP on or off at the account level, or per holding, in your account settings. Check with your specific broker for the exact menu location. QAre reinvested dividends taxed differently than cash dividends? ANo. The tax treatment (ordinary vs. qualified dividend rates) is the same whether the dividend is paid in cash or reinvested - reinvestment only changes what happens to the cash, not how it's taxed. **Categories:** Finance and Investing 101, Saving and Investing ideas **Tags:** dividends, DRIPS, investing, reinnvestment, saving --- ### [Who Can I Claim as a Dependent in 2026? Qualifying Child vs. Qualifying Relative Rules](https://savingtoinvest.com/dependent-exemption-and-income-threshold-amount-drives-who-can-i-claim-as-a-dependent/) **Published:** January 21, 2017 **Author:** Andy **Content:** ### Key Takeaways - There's no personal exemption dollar amount for dependents anymore - the OBBBA (One Big Beautiful Bill Act) made the TCJA's exemption suspension permanent, so claiming a dependent no longer reduces your taxable income by a set dollar figure. - What claiming a dependent actually gets you in 2026: potential eligibility for the Child Tax Credit (up to $2,200 per qualifying child) or the $500 Credit for Other Dependents, plus possible head of household filing status. - For a qualifying relative (not your child), their 2026 gross income must be under $5,300 - one dollar over disqualifies them entirely. - A child can only be claimed as a dependent on one tax return. When divorced or separated parents disagree, the IRS uses tiebreaker rules, and the losing filer owes back taxes plus possible penalties. - The rules for a qualifying child and a qualifying relative are different tests - mixing them up is the single most common mistake I see people make. There’s no dollar amount tied to claiming a dependent anymore. That surprises a lot of filers who remember the old personal exemption, so it’s worth saying clearly up front: the OBBBA (One Big Beautiful Bill Act), signed in 2025, made permanent what used to be a temporary suspension — personal exemptions for yourself, your spouse, and your dependents are gone for good, not just paused. What claiming a dependent still gets you in 2026 is access to credits: the Child Tax Credit, the Credit for Other Dependents, and potentially head of household filing status with its larger standard deduction and more favorable brackets. The rules for who actually qualifies as your dependent haven’t changed much — there are just two different tests, and mixing them up is where most mistakes happen. Covered in this Article: [Toggle](#) - [Qualifying Child vs. Qualifying Relative — Two Different Tests](#Qualifying_Child_vs_Qualifying_Relative_%E2%80%94_Two_Different_Tests) - [The $5,300 Gross Income Test, Explained](#The_5300_Gross_Income_Test_Explained) - [What You Actually Get for Claiming a Dependent in 2026](#What_You_Actually_Get_for_Claiming_a_Dependent_in_2026) - [Two Examples](#Two_Examples) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027](#Looking_Ahead_2027) ## Qualifying Child vs. Qualifying Relative — Two Different Tests A dependent is either a **qualifying child** or a **qualifying relative**, and the tests are genuinely different. **Qualifying child** covers your son, daughter, stepchild, foster child, sibling, or a descendant of any of them (grandchild, niece, nephew). They must be under 19 at year-end (or under 24 if a full-time student), live with you more than half the year, and not provide more than half of their own financial support. There’s no income limit for a qualifying child — a 16-year-old with a part-time job can still qualify. **Qualifying relative** is broader and covers people who don’t meet the qualifying child test — an elderly parent, an adult child who’s too old for the qualifying child rules, or even an unrelated person who lived with you all year. This test does have an income limit: their gross income must be under $5,300 for 2026, and you must have provided more than half of their financial support. ## The $5,300 Gross Income Test, Explained This is the number that actually matters in 2026, and it trips people up because it isn’t the old exemption amount — it’s a separate, still-indexed threshold the IRS uses specifically for the qualifying relative test. Gross income counts wages, self-employment earnings, taxable interest, dividends, rental income, and capital gains. It does not count most Social Security benefits (only the taxable portion counts), tax-exempt bond interest, or gifts. Go one dollar over $5,300 and the person no longer qualifies as your dependent under this test — there’s no partial credit or phase-out. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get updates as the IRS releases 2027 figures.* ## What You Actually Get for Claiming a Dependent in 2026 Since there’s no exemption dollar amount, the value comes entirely from credits and filing status. The [Child Tax Credit](https://savingtoinvest.com/child-and-kiddie-tax-credit-and-income-thresholds/) is worth up to $2,200 per qualifying child under 17, with up to $1,700 of that refundable. For dependents who don’t meet the CTC’s stricter age and relationship rules — a 17- or 18-year-old, a college student age 19-23, or a qualifying relative like an elderly parent — the Credit for Other Dependents provides up to $500 per person, though it starts phasing out above $200,000 of income ($400,000 married filing jointly). Claiming at least one qualifying dependent can also open the door to [head of household filing status](https://savingtoinvest.com/pick-your-correct-tax-filing-status-to-minimize-your-taxes/) if you’re unmarried and paid more than half the cost of keeping up your home — that status comes with a larger standard deduction and more favorable tax brackets than filing single. ## Two Examples **Mark**, 45, is divorced and pays for more than half the cost of his home. His 16-year-old daughter lives with him 220 nights a year. She works a part-time job earning $4,000, which doesn’t disqualify her — the income limit only applies to the qualifying relative test, not qualifying children. Mark claims her as a qualifying child, gets the $2,200 Child Tax Credit, and files as head of household. **Sarah** supports her 68-year-old mother, who lives in Sarah’s home and has $4,800 in gross income from a small pension and part-time consulting. Because that’s under the $5,300 threshold and Sarah provided more than half her mother’s support, Sarah can claim her mother as a qualifying relative and take the $500 Credit for Other Dependents — but not the Child Tax Credit, which doesn’t apply to a parent. ## Common Issues to Watch Out For I get questions about this every tax season, so here’s what trips people up most often. **Confusing the two tests.** The income limit applies to qualifying relatives, not qualifying children. A teenager with a summer job can still be your qualifying child dependent regardless of how much they earned. **Both parents trying to claim the same child.** A child can only be claimed on one return. If divorced or separated parents disagree, the IRS applies tiebreaker rules (generally favoring the parent the child lived with longer), and both returns can get flagged for review if two people claim the same dependent. **Assuming an unrelated person never qualifies.** A domestic partner or other unrelated person who lived with you all year and meets the income and support tests can qualify as a dependent under the qualifying relative rules — people are often surprised this is allowed. **Forgetting the support test cuts both ways.** You need to have provided more than half of the person’s support — not just have them living with you. A relative who’s mostly supporting themselves, even on modest income, may not qualify. **Expecting an exemption deduction that no longer exists.** This is now permanent under the OBBBA, not a temporary pause — plan around credits, not a per-dependent deduction. ## Looking Ahead: 2027 The $5,300 gross income test and the $500 Credit for Other Dependents threshold are both inflation-indexed, so expect a modest increase for 2027 — typically released by the IRS in October or November. The $2,200 Child Tax Credit amount is fixed by the OBBBA rather than indexed annually in the same way, so I’ll flag here if that changes. No further changes to the personal exemption are expected — the OBBBA made its suspension permanent, so this is the new baseline going forward rather than a rule set to expire. **Related reading:** - [Child Tax Credit (CTC) and Kiddie Tax](https://savingtoinvest.com/child-and-kiddie-tax-credit-and-income-thresholds/) - [Earned Income Tax Credit (EITC) Income Limits](https://savingtoinvest.com/earned-income-tax-credit-eitc-qualification-and-income-threshold-limits/) - [Pick Your Correct Tax Filing Status](https://savingtoinvest.com/pick-your-correct-tax-filing-status-to-minimize-your-taxes/) - [2026 Federal IRS Tax Brackets and Standard Deduction](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/) Frequently Asked Questions QIs there still a dependent exemption amount in 2026? ANo. The OBBBA made the suspension of personal exemptions permanent, so there's no longer a dollar amount you deduct per dependent. The value of claiming a dependent now comes from credits like the Child Tax Credit and Credit for Other Dependents, plus potential head of household filing status. QWhat is the gross income limit to claim someone as a qualifying relative in 2026? A$5,300. This applies only to the qualifying relative test - there's no income limit for a qualifying child. QCan I claim my girlfriend, boyfriend, or unmarried partner as a dependent? APossibly, if they lived with you all year, you provided more than half their support, and their gross income was under $5,300 for 2026. They'd qualify under the qualifying relative rules, not as a qualifying child. QWhat happens if two parents both claim the same child? AOnly one return can claim a given dependent. If both parents claim the same child, the IRS applies tiebreaker rules - generally favoring the parent the child lived with for the greater part of the year - and the losing filer will owe back taxes and may face penalties. QDoes a teenager's summer job income disqualify them as my dependent? ANo, as long as they're your qualifying child (under 19, or under 24 if a full-time student, and living with you more than half the year). The gross income test only applies to qualifying relatives, not qualifying children. QWhat's the difference between the Child Tax Credit and the Credit for Other Dependents? AThe Child Tax Credit is worth up to $2,200 per qualifying child under 17. The Credit for Other Dependents is worth up to $500 and covers dependents who don't meet the CTC's age or relationship rules, like a 17-18 year old, a college student, or a qualifying relative such as an elderly parent. QDoes claiming a dependent affect my filing status? AIt can. If you're unmarried, paid more than half the cost of keeping up your home, and a qualifying person lived with you more than half the year, claiming that dependent can qualify you for head of household status, which has a larger standard deduction and more favorable brackets than filing single. **Categories:** Personal Finance and Money --- ### [The Power of Compounding: $1 Million Now or a Penny Doubled for 30 Days?](https://savingtoinvest.com/power-of-compounding-1-million-now-or/) **Published:** June 29, 2020 **Author:** Andy **Content:** ### Key Takeaways - A penny doubled every day for 30 days grows to over $5.3 million - beating a flat $1 million payout by more than 5x, purely through compounding. - Today's top high-yield savings accounts pay around 4.50% APY, versus the FDIC national average of just 0.38% - a gap that's itself a real-world compounding lesson. - $10,000 left alone for 30 years grows to about $38,000 at a 4.5% savings rate, but roughly $175,000 at the stock market's long-run ~10% historical average. - Starting early matters more than the size of your contributions - a 22-year-old who saves for 6 years and then stops can out-compound someone who starts a decade later and never quits. - Compounding works in tax-advantaged accounts (401k, IRA) too - I'll flag where to actually put this money, not just how the math works. Here’s a question I’ve used to start more than a few personal finance conversations: would you rather have $1 million right now, or take a single penny — doubled every day for 30 days? Most people pick the million. Almost every time. They’re wrong. By day 30, the penny-doubling path produces over **$5.3 million**. DayValue That DayRunning Total1$0.01$0.015$0.16$0.3110$5.12$10.2315$163.84$327.6720$5,242.88$10,485.7525$167,772.16$335,544.3128$1,342,177.28$2,684,354.5529$2,684,354.56$5,368,709.11**30****$5,368,709.12****$10,737,418.23** That’s the magic — and the counterintuitive brutality — of compounding. The growth is almost invisible at first, then suddenly enormous. On day 20 you’ve got roughly $5,000. By day 28 you’ve crossed $1 million. Days 29 and 30 alone add more than $4 million. A 100% daily return isn’t something anyone’s going to get in a savings account. But the underlying principle transfers perfectly to real investing, and it’s why I believe compounding is the single most important concept in personal finance. Covered in this Article: [Toggle](#) - [Why Compounding Works — And Why Most People Miss It](#Why_Compounding_Works_%E2%80%94_And_Why_Most_People_Miss_It) - [Real-World Compounding in 2026](#Real-World_Compounding_in_2026) - [Compounding in a High-Yield Savings Account](#Compounding_in_a_High-Yield_Savings_Account) - [Three Rules for Making Compounding Work](#Three_Rules_for_Making_Compounding_Work) - [2026 Contribution Limits: Put Compounding to Work](#2026_Contribution_Limits_Put_Compounding_to_Work) ## Why Compounding Works — And Why Most People Miss It Compound interest is simple in concept: you earn returns not just on your original money, but on every dollar of growth you’ve already accumulated. Year 1: You earn interest on $1,000. Year 2: You earn interest on $1,000 + last year’s interest. Year 3: You earn interest on all of that. And so on. Each year’s base is a little larger. At first the difference between simple and compound interest looks trivial. After 30 years it’s the difference between a comfortable retirement and a genuinely life-changing one. The penny table above makes the math visceral. The same dynamic plays out in your retirement accounts — just more slowly, because you’re earning 7–10% annually instead of 100% daily. ## Real-World Compounding in 2026 Here’s where this gets concrete. Let’s say you’re 28 years old and you max out a Roth IRA this year. **Example — Sarah, age 28:** She contributes $7,500 to a Roth IRA in 2026 (the new contribution limit, up $500 from last year) and invests it in a diversified index fund averaging 7% annual returns. She makes no additional contributions. By the time she’s 65, that single $7,500 contribution grows to roughly **$85,000** — more than 11x her original investment, completely tax-free. If she contributes $7,500 every year from age 28 to 65, the total out-of-pocket is about $277,500 — but the account balance at 65 would be over **$1.4 million**. That’s compounding doing its job. **Example — Marcus, age 25:** Marcus starts three years earlier than Sarah, at 25. Same $7,500/year, same 7% average return. At 65, his balance crosses **$1.8 million** — about $400,000 more than Sarah’s, from just three extra years of contributions. Time is the variable most people underestimate. ## Compounding in a High-Yield Savings Account Not every dollar should be in the market. You also need liquid savings — emergency fund, short-term goals. And in 2026, those dollars don’t have to sit idle. The best high-yield savings accounts (HYSAs) are currently paying 3.5–4.15% APY, compared to the national average of just 0.38%. On a $10,000 emergency fund: - National average (0.38%): $38/year - Top HYSA (4.10% APY): $410/year That’s not retirement money, but it’s not nothing. And it compounds — the interest you earn this month earns interest next month. Over several years, the difference between a standard savings account and a top HYSA on $20,000 adds up to thousands of dollars. I’ll update this page as rates change — the Fed has kept rates steady at 3.50–3.75% through mid-2026, but that can shift. [Subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) when I update key figures. ## Three Rules for Making Compounding Work **1. Start now, not later.** The Sarah vs. Marcus example is almost a cliché at this point, but it’s a cliché because the math is undeniable. Three years of head start produced $400,000 more. The single best time to start was 10 years ago. The second-best is today. **2. Be consistent.** Automated monthly contributions remove the temptation to spend the money before you invest it. Even $200–$300/month in a [Roth IRA](https://savingtoinvest.com/traditional-ira-versus-roth-ira-contribution-and-phase-out-income-limits/) compounds meaningfully over 20 years. If your employer offers a [401k match](https://savingtoinvest.com/taking-advantage-of-new-401k/), that’s an immediate guaranteed return — contribute enough to capture every dollar of it. **3. Leave it alone.** Compounding only works if you don’t interrupt it. The people who cashed out their retirement accounts in 2008, 2020, or any other crash didn’t just lose money — they lost the future compounding on that money. The most critical part of the penny table is that each of the final three days adds more than the previous 27 combined. Staying invested is how you get to days 28, 29, 30. ## 2026 Contribution Limits: Put Compounding to Work - **Roth or Traditional IRA**: $7,500/year in 2026 (up from $7,000 in 2024–2025), $8,500 if you’re 50+ - **401(k)/403(b)**: $24,500/year employee contribution limit in 2026, up to $32,500 with catch-up contributions if you’re 50–59 or 64+; a special higher catch-up applies for ages 60–63 - **HSA**: If you’re on a high-deductible health plan, an [HSA](https://savingtoinvest.com/hsa-limits-and-tax-rules-how-to-best-utilize-health-savings-accounts/) is the only triple-tax-advantaged account available — contributions are pre-tax, growth is tax-free, and qualified withdrawals are tax-free. Unused balances roll over and compound indefinitely. The earlier in the year you contribute, the more months of compounding you capture. A January IRA contribution vs. an April one isn’t life-changing in any single year — but across a 35-year investing career, it adds thousands. --- **Related reading:** - [2026–2027 Roth IRA and Traditional IRA Contribution and Income Limits](https://savingtoinvest.com/traditional-ira-versus-roth-ira-contribution-and-phase-out-income-limits/) - [2026–2027 401(k), 403(b) and TSP Contribution Limits](https://savingtoinvest.com/taking-advantage-of-new-401k/) - [Best High-Yield Savings Account Rates](https://savingtoinvest.com/rates-on-high-yield-savings-accounts/) - [Master Your Money: The Ultimate Personal Income and Spending Roadmap](https://savingtoinvest.com/master-your-money-the-ultimate-personal-income-and-spending-roadmap/) - [2026–2027 HSA Contribution Limits and Tax Rules](https://savingtoinvest.com/hsa-limits-and-tax-rules-how-to-best-utilize-health-savings-accounts/) Frequently Asked Questions QHow much does a penny doubled every day for 30 days actually grow to? A$5,368,709.12 - more than five times a flat $1 million payout, purely from doubling once a day for 30 days. QWhat's the best high-yield savings account rate right now? AAs of July 2026, top high-yield savings accounts are paying up to around 4.50% APY, well above the FDIC's national average of 0.38% APY. Rates change with the Federal Reserve, so check current listings before opening an account. QWhat's a realistic long-term rate of return to use when estimating compounding? AFor savings and CDs, use the current published APY. For long-term stock market investments, a commonly cited historical average is around 10% annually before inflation (roughly 7% after inflation), based on nearly a century of S&P 500 data - though any single year can vary sharply from that average. QDoes compounding work the same in a 401(k) or IRA as in a regular savings account? AYes, the math is identical. The difference is tax treatment - growth inside a 401(k) or IRA compounds tax-deferred or tax-free, while growth in a taxable account or regular savings account is generally taxed as it's earned. QIs it better to save a little starting young, or save more starting later? AStarting early usually wins, even with smaller contributions, because time compounds returns more than contribution size does. The Amy and Mark examples above show someone who saved less but started a decade earlier ending up ahead of someone who saved far more but started later. QHow often should I check whether my savings rate is still competitive? AChecking quarterly is reasonable for most people. Online high-yield savings rates can drift with Federal Reserve rate changes, and some promotional rates drop after an introductory period. QDoes compounding ever work against you? AYes - carrying a balance on high-interest debt like credit cards compounds the same way, just in reverse. That's why paying down high-interest debt is usually a higher priority than starting to invest. **Categories:** Personal Finance and Money **Tags:** compounding, interest, saving, time --- ### [Gold Price Outlook for 2026: What's Actually Driving the Rally (and How to Think About Buying)](https://savingtoinvest.com/gold-price-outlook-golden-investment-in/) **Published:** February 2, 2009 **Author:** Andy **Content:** ### Key Takeaways - Gold traded around $4,121 an ounce as of July 10, 2026 - up roughly 22.8% over the past year, though prices move week to week. - Three forces are doing most of the work: heavy central bank buying (central banks are on pace for roughly 800 tonnes of purchases in 2026), expectations of further Fed rate cuts, and a weaker U.S. dollar. - Gold's actual long-run average return is closer to 9-11% annually before inflation over 10-25 year stretches - nowhere near the 'gold to $5,000' style predictions that circulate during every rally. - Physical gold and gold ETFs are taxed as collectibles - up to 28% on long-term gains, a materially higher rate than the top long-term capital gains rate on stocks. - I don't make price calls here. This is a framework for deciding if gold belongs in your portfolio, not a forecast of where it's headed next. Gold traded around $4,121 an ounce on July 10, 2026, up about 22.8% from a year earlier. It’s also down slightly over the past month, which is the point: gold moves, and I’m not going to pretend I know where it goes next. What I can do is lay out what’s actually driving the current rally, what gold has historically returned over long stretches (not cherry-picked ones), and how to think about whether it belongs in your portfolio at all — without predicting a price target. Covered in this Article: [Toggle](#) - [What’s Actually Driving Gold in 2026](#Whats_Actually_Driving_Gold_in_2026) - [Gold’s Long-Run Track Record (Without the Price Targets)](#Golds_Long-Run_Track_Record_Without_the_Price_Targets) - [The Case For and Against Holding Gold](#The_Case_For_and_Against_Holding_Gold) - [How to Actually Invest in Gold](#How_to_Actually_Invest_in_Gold) - [Tax Treatment: Gold Is a Collectible](#Tax_Treatment_Gold_Is_a_Collectible) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: What I’m Watching the Rest of 2026](#Looking_Ahead_What_Im_Watching_the_Rest_of_2026) ## What’s Actually Driving Gold in 2026 Three forces are doing most of the work right now. **Central bank buying.** Central banks bought roughly 225 tonnes of gold per quarter from 2021 through 2025, close to double the pace from 2016-2020. China in particular has been steadily building reserves, and consensus estimates put 2026 central bank purchases around 800 tonnes — about 26% of annual global mine output. That’s demand that doesn’t care about the daily price chart. **Rate cut expectations.** Gold pays no interest, so it competes directly with bonds and savings accounts for a spot in a portfolio. When the Federal Reserve cuts rates (or is expected to), the opportunity cost of holding gold instead of yield-bearing assets drops, and gold typically benefits. **A weaker dollar.** Gold is priced in dollars globally, so when the dollar weakens, gold gets more expensive in dollar terms even if nothing about gold itself has changed. [I track the dollar’s own outlook separately](https://savingtoinvest.com/us-dollar-rising-and-outlook/) since the two move together often enough to matter. Trade tensions and geopolitical uncertainty add volatility on top of these three, but they tend to move gold in spikes rather than sustain a trend the way central bank demand does. ## Gold’s Long-Run Track Record (Without the Price Targets) Every gold rally produces headlines about $5,000 or $6,000 an ounce. I’m skipping those and sticking to what’s actually measurable: gold’s historical average return over real time periods. Over the past 10 years, gold has returned roughly 8.8% annually before inflation (about 3.1% after inflation). Over the past 20 years, that average rises to roughly 10.9% annually before inflation (about 6.7% real). Going back to 1971, when gold was freed from the fixed-price gold standard, the long-run compound annual growth rate is closer to 8-9%. Those are respectable numbers, but they hide a lot of pain along the way. Investors who bought at the 1980 peak didn’t recover their money in nominal terms for roughly 25 years. Gold isn’t a smooth line — it’s a volatile asset with a decent long-run average, which is a very different thing from a guaranteed store of value. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates as the rate and gold-demand picture shifts.* ## The Case For and Against Holding Gold The case for gold usually comes down to three things: it doesn’t move in lockstep with stocks and bonds, which makes it useful for [portfolio diversification](https://savingtoinvest.com/importance-of-diversification/); it has historically held value during inflationary stretches; and central bank demand provides a demand floor that didn’t really exist a decade ago. The case against it is just as real. Gold produces no income — no dividends, no interest, no earnings growth. Its price is driven heavily by sentiment and macro positioning rather than any underlying cash flow, which makes it harder to value than a stock or bond. And as the 1980-2005 stretch shows, “long run” can mean multiple decades if your timing is bad. Neither case wins outright. It’s a question of what role, if any, you want a non-yielding, historically volatile hedge to play in your specific mix. ## How to Actually Invest in Gold If you decide gold has a place in your portfolio, you’ve got a few practical options. **Bullion** — physical bars or coins. You get direct ownership and control, but you also take on storage, insurance, and theft risk. **Gold ETFs** — shares like SPDR Gold Shares (GLD) or iShares Gold Trust (IAU) that track the price of gold and trade like a stock. This is the lowest-friction way for most people to get exposure without the logistics of physical storage. **Mining stocks** — shares in companies that mine gold. These are leveraged to the gold price (a rising gold price boosts miner profit margins disproportionately) but also carry company-specific and operational risk that pure gold exposure doesn’t. **Pooled or allocated accounts** — gold held in a vault on your behalf, either as specific numbered bars (allocated) or a claim on a pool of gold (unallocated). Allocated accounts typically charge storage and insurance fees; unallocated accounts don’t, but you’re an unsecured creditor if the provider goes under. ## Tax Treatment: Gold Is a Collectible This is the part people miss. The IRS treats physical gold — and gains on gold ETFs backed by physical bullion — as a collectible, not a standard capital asset. That means long-term gains on gold and gold ETFs are taxed at up to 28%, well above the top long-term [capital gains rate on stocks](https://savingtoinvest.com/capital-gains-tax-short-and-long-term-rates-plus-other-factors-to-consider/) (generally 15-20% for most investors). Mining stocks don’t get this treatment — they’re taxed like any other equity, which is one more reason some investors prefer that route. ## Common Issues to Watch Out For I get questions about this every time gold makes headlines, so here’s what trips people up most often. **Treating a rally as a forecast.** A strong past year doesn’t tell you what happens next — gold’s history includes multi-decade flat stretches, not just rallies. **Forgetting the collectibles tax rate.** A lot of investors don’t realize their gold ETF gains are taxed differently than their stock gains until they file. **Overweighting gold because of headlines.** Most advisors who recommend gold at all suggest a modest allocation (commonly cited in the single digits to low double digits as a percentage of a portfolio), not a core holding — it’s a diversifier, not a replacement for stocks and bonds. **Confusing mining stocks with gold exposure.** Mining stocks amplify gold’s moves in both directions and add company-specific risk that pure bullion or ETF exposure doesn’t have. ## Looking Ahead: What I’m Watching the Rest of 2026 Three things will tell me more about where this rally is headed than any price target would: whether central bank buying holds near that ~800-tonne pace through year-end, what the Fed actually does at its remaining 2026 meetings versus what’s currently priced in, and whether the dollar keeps weakening or stabilizes. I’ll revisit this page when any of those three shifts meaningfully rather than on a fixed schedule — gold-driven news moves faster than an annual update cycle. **Related reading:** - [The Importance of Portfolio Diversification](https://savingtoinvest.com/importance-of-diversification/) - [US Dollar Outlook](https://savingtoinvest.com/us-dollar-rising-and-outlook/) - [Capital Gains Tax Rates — Short and Long Term](https://savingtoinvest.com/capital-gains-tax-short-and-long-term-rates-plus-other-factors-to-consider/) - [Eight Things Not to Do With Your 401(k) and IRA](https://savingtoinvest.com/what-not-to-do-with-your-401k-and-ira/) - [The Power of Compounding](https://savingtoinvest.com/power-of-compounding-1-million-now-or/) Frequently Asked Questions QWhat is the price of gold right now? AGold traded around $4,121 an ounce as of July 10, 2026, up roughly 22.8% over the prior year. Prices change daily - check a live quote source before making any decision. QWhy is gold price rising in 2026? AThree main drivers: heavy central bank buying (on pace for roughly 800 tonnes in 2026), expectations of further Federal Reserve rate cuts, and a weaker U.S. dollar, which makes gold more expensive in dollar terms. QWhat has gold's average annual return actually been? ARoughly 8.8% annually before inflation over the past 10 years, and roughly 10.9% annually before inflation over the past 20 years. Since 1971, the long-run compound annual growth rate is closer to 8-9%. QHow is gold taxed? APhysical gold and gold ETFs backed by physical bullion are taxed as collectibles, with a long-term capital gains rate of up to 28% - higher than the top long-term rate on stocks. Gold mining stocks are taxed as regular equities. QWhat's the easiest way to invest in gold? AFor most people, a gold ETF like GLD or IAU offers the simplest exposure - no storage or insurance logistics, and it trades like a stock. Physical bullion offers direct ownership but adds storage and security considerations. QHow much of my portfolio should be in gold? AThere's no universal answer, but many advisors who recommend gold at all suggest a modest allocation as a diversifier rather than a core holding. The right amount depends on your own goals, timeline, and risk tolerance. QIs gold a good hedge against inflation? AGold has historically held value during some inflationary periods, but the relationship isn't perfectly reliable - there have been stretches where gold underperformed inflation for years at a time. Treat it as one possible hedge, not a guaranteed one. **Categories:** Finance and Investing 101, Saving and Investing ideas **Tags:** commodites, forecast, GLD, Gold, outlook, prices, silver --- ### [2026 Medical Expense Deduction: The 7.5% AGI Floor and What You Can Actually Write Off](https://savingtoinvest.com/medical-expense-deduction-agi-limit/) **Published:** July 11, 2013 **Author:** Andy **Content:** ### Key Takeaways - You can deduct unreimbursed medical and dental expenses that exceed 7.5% of your Adjusted Gross Income (AGI) - but only if you itemize on Schedule A. - The 7.5% floor is permanent for all ages (made so by the Consolidated Appropriations Act back in 2021) - there's no separate, lower threshold for seniors. - For 2026, the standard deduction is $16,100 (single) / $32,200 (married filing jointly) / $24,150 (head of household), per the 2026 tax brackets. Your total itemized deductions - medical above the floor, state and local taxes, mortgage interest, charitable gifts - have to beat that number before the medical deduction does you any good. - The 2026 IRS standard mileage rate for medical travel is 20.5 cents per mile, down half a cent from 2025. - Expenses reimbursed by insurance, an HSA, or an FSA don't count - no double-dipping. - Self-employed people generally deduct health insurance premiums a different way (an above-the-line adjustment), not through this itemized deduction. I get asked about this deduction every tax season, usually from someone who just had a rough year medically and wants to know if any of it comes back at tax time. The honest answer: sometimes, but the bar is higher than most people assume. The rule itself is simple. You can deduct medical and dental expenses for yourself, your spouse, and your dependents — but only the amount that exceeds 7.5% of your Adjusted Gross Income (AGI), and only if you itemize instead of taking the standard deduction. That second part is where most people get tripped up. With the standard deduction sitting at $16,100 for single filers and $32,200 for married couples filing jointly in 2026, a lot of taxpayers who’d have itemized a decade ago no longer clear that bar — even with a legitimate pile of medical bills. Here’s how the math actually works, what qualifies, and where I see people make mistakes. Covered in this Article: [Toggle](#) - [The 7.5% AGI Floor, With a Real Example](#The_75_AGI_Floor_With_a_Real_Example) - [Do You Actually Clear the Standard Deduction?](#Do_You_Actually_Clear_the_Standard_Deduction) - [What Counts as a Qualifying Medical Expense](#What_Counts_as_a_Qualifying_Medical_Expense) - [HSA, FSA, and This Deduction Don’t Stack](#HSA_FSA_and_This_Deduction_Dont_Stack) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027](#Looking_Ahead_2027) ## The 7.5% AGI Floor, With a Real Example Take your AGI, multiply by 7.5%, and that’s the amount of medical spending that isn’t deductible no matter what. Only the excess counts. **Example: Priya**, single, has an AGI of $60,000. 7.5% of that is $4,500 — the floor. She had $9,200 in unreimbursed medical expenses in 2026: a surgery copay, physical therapy, and a new pair of glasses. Subtract the $4,500 floor, and she can deduct **$4,700** on Schedule A — but only if her total itemized deductions (this $4,700 plus mortgage interest, state and local taxes, and any charitable giving) exceed her $16,100 standard deduction. If she doesn’t have a mortgage or other big itemized deductions, $4,700 alone won’t get her past $16,100 — so she’d take the standard deduction instead and the medical expenses provide no additional tax benefit that year. ## Do You Actually Clear the Standard Deduction? This is the real gatekeeping question, and it’s why the medical expense deduction matters less than it used to for a lot of filers. **Example: The Hendersons**, married filing jointly, have a $32,200 standard deduction to beat in 2026. Their AGI is $140,000, so the 7.5% floor is $10,500. They had a difficult year: $28,000 in out-of-pocket medical costs from a family member’s extended care, plus $9,000 in mortgage interest and $8,000 in state and local taxes (capped, depending on the SALT limit that applies to their situation). Medical deduction after the floor: $28,000 − $10,500 = **$17,500**. Add the $9,000 mortgage interest and $8,000 SALT: total itemized deductions come to $34,500 — just over their $32,200 standard deduction. In a year like this, itemizing wins, even if narrowly. Run the numbers before assuming either way. A single major medical event can be the difference between itemizing being worth it and not. > *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) and I’ll flag it here if the AGI floor or standard deduction amounts change.* ## What Counts as a Qualifying Medical Expense The IRS defines this broadly in [Publication 502](https://www.irs.gov/publications/p502). Common qualifying costs include: - Doctor, dentist, and specialist visit copays and fees - Prescription medications - Hospital and surgery costs - Mental health treatment, including therapy and counseling - Vision care — eye exams, glasses, contacts - Hearing aids - Long-term care premiums and services, up to age-based IRS limits - Medical travel: 20.5 cents per mile in 2026, plus parking and tolls, for trips to and from medical care What generally does **not** qualify: cosmetic procedures (unless medically necessary), general health items like vitamins or gym memberships, and — importantly — any expense already reimbursed through insurance, an HSA, or an FSA. ## HSA, FSA, and This Deduction Don’t Stack If you paid for an expense using HSA or FSA funds, you already got the tax break on that money going in — you can’t also deduct it here. That would be double-dipping, and the IRS checks for it. This is one reason I think the [HSA](https://savingtoinvest.com/hsa-limits-and-tax-rules-how-to-best-utilize-health-savings-accounts/) is the better tool for most people with predictable medical costs: the tax benefit is automatic and doesn’t depend on clearing a 7.5% floor or beating the standard deduction. The itemized medical deduction is really a backstop for the years an HSA or FSA wasn’t enough to cover what happened. ## Common Issues to Watch Out For **1. Assuming any medical spending is deductible.** I see this misunderstanding a lot. Only the portion above 7.5% of AGI counts, and only if you itemize. A $2,000 medical bill on a $70,000 AGI ($5,250 floor) deducts nothing on its own. **2. Forgetting insurance premiums might already be pre-tax.** If your health insurance premiums come out of your paycheck pre-tax (common with employer plans), you can’t deduct them again here. Only after-tax premiums — like COBRA payments or individual marketplace premiums paid out of pocket — potentially qualify. **3. Not tracking medical mileage.** The 20.5 cents/mile rate for 2026 adds up if you’re making regular trips for treatment, dialysis, or a dependent’s therapy appointments. Keep a simple log — date, destination, purpose, miles. **4. Missing the self-employed health insurance deduction.** If you’re self-employed, your health insurance premiums are usually deducted above-the-line on Schedule 1, not run through this itemized calculation. Don’t do both. **5. Not comparing itemizing vs. the standard deduction each year.** Your itemizing decision resets annually. A year with unusually high medical costs might tip the scale toward itemizing even if you took the standard deduction the year before — and vice versa. ## Looking Ahead: 2027 The 7.5% AGI floor is set in the tax code and isn’t scheduled to change — it’s been permanent since 2021 and doesn’t require an annual IRS adjustment the way contribution limits do. What will move for 2027: the standard deduction (inflation-adjusted under the OBBBA, typically announced in October or November) and the medical mileage rate (usually announced in December for the following year). I’ll update this page once those are confirmed. For more on this year’s other key thresholds, see the [2026 IRS tax brackets](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/) and the [HSA contribution limits guide](https://savingtoinvest.com/hsa-limits-and-tax-rules-how-to-best-utilize-health-savings-accounts/). Frequently Asked Questions QWhat is the medical expense deduction AGI floor for 2026? AYou can deduct unreimbursed medical and dental expenses that exceed 7.5% of your Adjusted Gross Income (AGI) in 2026. This floor is permanent and applies to all filers regardless of age. You must itemize on Schedule A to claim it. QDo I need to itemize to claim medical expenses? AYes. The medical expense deduction only applies if your total itemized deductions - including medical expenses above the 7.5% AGI floor - exceed your standard deduction. For 2026, the standard deduction is $16,100 for single filers and $32,200 for married filing jointly. QCan I deduct medical expenses paid with HSA or FSA funds? ANo. Expenses reimbursed through an HSA, FSA, or insurance don't qualify for the itemized medical expense deduction - you already received the tax benefit when the funds went in or when insurance paid the claim. QWhat is the medical mileage rate for 2026? A20.5 cents per mile, down half a cent from 2025. This applies to trips for medical care for yourself or a dependent. You can also deduct related parking fees and tolls. QAre health insurance premiums deductible under this rule? AOnly if you paid them with after-tax dollars, such as COBRA continuation coverage or individual marketplace premiums paid out of pocket. Premiums already deducted pre-tax through an employer plan don't qualify again here. Self-employed people generally deduct premiums separately, above the line. QIs the 7.5% floor different for seniors? ANo. A lower 7.5% threshold used to apply only to those 65 and older years ago, but the floor has been a flat 7.5% for all ages since 2013, and permanently so since the Consolidated Appropriations Act in 2021. **Categories:** Taxes and Retirement **Tags:** AGI, deduction, medical --- ### [2026–2027 HSA Contribution Limits, HDHP Deductibles, and How to Make the Most of Your Health Savings Account](https://savingtoinvest.com/hsa-limits-and-tax-rules-how-to-best-utilize-health-savings-accounts/) **Published:** July 31, 2010 **Author:** Andy **Content:** ### Key Takeaways - The IRS made it official in Revenue Procedure 2026-24: the 2027 HSA contribution limit is $4,500 for individual coverage and $9,000 for family coverage. - The 2026 HSA contribution limit is $4,400 for individual coverage and $8,750 for family coverage. - Individuals age 55 or older can make an additional $1,000 catch-up contribution in both years (this amount is fixed and not indexed for inflation). - To contribute to an HSA, you must be enrolled in a qualifying High Deductible Health Plan (HDHP). - 2027 HDHP minimum deductibles: $1,750 (individual) and $3,500 (family). 2027 HDHP out-of-pocket maximums: $8,700 (individual) and $17,400 (family). - New for 2026: Direct Primary Care (DPC) memberships up to $150/month (individual) or $300/month (family) no longer disqualify you from HSA eligibility, thanks to the One Big Beautiful Bill (OBBB). - HSA funds roll over year to year - unlike FSA accounts, there's no use-it-or-lose-it rule. If I had to pick one tax-advantaged account most people are underusing, it would be the HSA — and it’s not particularly close. I’ve been contributing to one for years, and the more I’ve learned about how these accounts work, the more I think of them as a stealth retirement account. Most people treat an HSA like a medical checking account — contribute a little, spend it on copays and prescriptions, and start fresh in January. That’s a completely valid approach, and you still come out ahead on taxes. But if you can afford to let the money sit and invest it, the HSA becomes something much more interesting. Here’s the basic pitch: contributions go in pre-tax (lowering your taxable income), the money grows tax-free, and qualified medical withdrawals come out tax-free. That triple tax advantage doesn’t exist anywhere else in the tax code. A traditional 401(k) gives you a deduction now but taxes you on the way out. A Roth gives you tax-free growth but no deduction up front. The HSA does both — as long as you spend it on medical expenses, which, at some point in your life, you will. The catch is that you have to be enrolled in a qualifying High Deductible Health Plan (HDHP) to contribute. That’s not the right fit for everyone, especially if you have ongoing medical costs that would eat through a high deductible every year. But for people who are generally healthy and can absorb the higher deductible, the math often works out favorably once you factor in the tax savings and the lower premiums that typically come with HDHPs. Below are the confirmed 2026 and 2027 limits, updated HDHP thresholds, and everything you need to know about getting the most out of your HSA. The 2026 limits come from [IRS Revenue Procedure 2025-19](https://www.irs.gov/pub/irs-drop/rp-25-19.pdf); the 2027 limits were confirmed in May 2026 via [IRS Revenue Procedure 2026-24](https://www.irs.gov/pub/irs-drop/rp-26-24.pdf). Covered in this Article: [Toggle](#) - [2026 and 2027 HSA Contribution Limits and HDHP Thresholds (Official)](#2026_and_2027_HSA_Contribution_Limits_and_HDHP_Thresholds_Official) - [New for 2026: Direct Primary Care Memberships Are Now HSA-Compatible](#New_for_2026_Direct_Primary_Care_Memberships_Are_Now_HSA-Compatible) - [How HSA Accounts Work (The Basics)](#How_HSA_Accounts_Work_The_Basics) - [High Deductible Health Plans (HDHP): What Qualifies](#High_Deductible_Health_Plans_HDHP_What_Qualifies) - [The Triple Tax Advantage — and Why I Don’t Touch My HSA](#The_Triple_Tax_Advantage_%E2%80%94_and_Why_I_Dont_Touch_My_HSA) - [Example: HSA vs. Taxable Account Over 20 Years](#Example_HSA_vs_Taxable_Account_Over_20_Years) - [Example: Maxing Out the New 2027 Family Limit](#Example_Maxing_Out_the_New_2027_Family_Limit) - [HSA Withdrawal Rules After Age 65](#HSA_Withdrawal_Rules_After_Age_65) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Rolling Over HSA Accounts](#Rolling_Over_HSA_Accounts) - [HSA vs. FSA: The Key Difference](#HSA_vs_FSA_The_Key_Difference) - [Looking Ahead: 2028](#Looking_Ahead_2028) ## 2026 and 2027 HSA Contribution Limits and HDHP Thresholds (Official) Item202520262027HSA — Individual coverage$4,300**$4,400****$4,500**HSA — Family coverage$8,550**$8,750****$9,000**HSA catch-up (age 55+)$1,000**$1,000****$1,000**HDHP min. deductible — Individual$1,650**$1,700****$1,750**HDHP min. deductible — Family$3,300**$3,400****$3,500**HDHP OOP max — Individual$8,300**$8,500****$8,700**HDHP OOP max — Family$16,600**$17,000****$17,400** The IRS released the 2027 figures earlier than some readers expect — HSA limits come out in a separate Revenue Procedure each May, well ahead of the October/November batch that covers 401(k)s, IRAs, and FSAs. That gives you a longer runway to plan HDHP elections and payroll HSA contributions for 2027 open enrollment. Note for **married couples** where both spouses are on HDHP coverage through separate employers: each can contribute up to their individual plan’s share of the family limit, but the combined household total can’t exceed the family maximum ($8,750 in 2026, $9,000 in 2027). Coordinate with your spouse during open enrollment. > *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) and I’ll post updated HSA figures as soon as the IRS confirms them each year.* ## New for 2026: Direct Primary Care Memberships Are Now HSA-Compatible This is a genuinely new wrinkle most HSA guides haven’t caught up on yet. The One Big Beautiful Bill (OBBB), passed in 2025, added a provision letting you belong to a **Direct Primary Care (DPC) membership** — the flat monthly-fee arrangement some primary care practices use instead of billing insurance — without losing HSA eligibility. Under Revenue Procedure 2026-24, a DPC arrangement doesn’t count as disqualifying “other health coverage” as long as the fees stay at or under **$150 per month for individual coverage** or **$300 per month if the membership covers more than one person**. Those thresholds are effective for months beginning in 2026 and will be adjusted for inflation starting in 2027. Before this change, many DPC memberships technically made you HSA-ineligible because the IRS treated them like a health plan. If you’re considering a DPC arrangement alongside an HDHP, this removes a real obstacle — just keep your membership fee under the monthly cap. ## How HSA Accounts Work (The Basics) A Health Savings Account is a tax-advantaged account you own — not your employer — that works alongside a High Deductible Health Plan. Contributions go in pre-tax, investments grow tax-free, and qualified medical withdrawals come out tax-free. That’s the triple tax advantage, and it’s genuinely exceptional compared to any other savings vehicle. You can use HSA funds for qualified medical expenses at any time. What makes HSAs different from FSAs is that unused funds roll over indefinitely — there’s no annual forfeiture. An HSA you funded at 40 can still be paying for medical expenses at 70. Contribution limits are prorated based on the months you’re enrolled in an eligible HDHP plan. If you switch mid-year, your annual maximum is reduced proportionally — though a “last-month rule” allows you to contribute the full year’s amount if you’re enrolled on December 1, provided you stay enrolled through the following 13 months. ## High Deductible Health Plans (HDHP): What Qualifies To contribute to an HSA, your health plan must meet the IRS definition of an HDHP: **Minimum deductible:** $1,700 for individual, $3,400 for family in 2026, rising to $1,750 individual and $3,500 family in 2027. Your plan must have a deductible at least this high before insurance pays anything (except preventive care). **Maximum out-of-pocket limit:** $8,500 for individual, $17,000 for family in 2026, rising to $8,700 individual and $17,400 family in 2027. Once you’ve spent this much in a plan year, the HDHP covers 100% of remaining costs. Not all high-deductible plans qualify — your plan must meet both the minimum deductible *and* stay under the OOP maximum. Check with your HR department or insurer to confirm your plan is HSA-eligible before contributing. ## The Triple Tax Advantage — and Why I Don’t Touch My HSA I’ve been contributing to an HSA for years, and the strategy I’ve landed on is simple: don’t spend it. I pay medical bills out of pocket and let the HSA grow invested in broad index funds. Here’s why that works so well: **Tax 1 — Contributions are pre-tax.** Contributions made through payroll deductions avoid federal income tax, FICA (Social Security and Medicare), and often state income tax. A $4,400 contribution from someone in the 22% bracket saves roughly $1,100 in federal income tax alone — plus another $337 in FICA. **Tax 2 — Investments grow tax-free.** Once your balance exceeds a threshold (usually $1,000–$2,000 depending on the provider), you can invest HSA funds in mutual funds or ETFs. Capital gains, dividends, and interest compound without any annual tax drag. **Tax 3 — Qualified withdrawals are tax-free.** Distributions for qualified medical expenses — which include a broad range of costs, from prescriptions to dental to vision — are completely tax-free at any age. ### Example: HSA vs. Taxable Account Over 20 Years **Sarah**, 45, contributes $4,400/year to her HSA and invests it in a broad index fund earning 7% annually. She pays all current medical costs out of pocket. Over 20 years: roughly **$180,000** in tax-free HSA assets, vs. approximately **$145,000** in a taxable account making identical returns (assuming 22% bracket on dividends/gains each year). The gap widens the longer you don’t withdraw. If she’s in the 24% bracket, the difference is even more pronounced. ### Example: Maxing Out the New 2027 Family Limit **Marcus and Priya**, married with family HDHP coverage, plan to max out their HSA at the new **$9,000** family limit starting in 2027 — $250 more than the 2026 cap. In the 24% federal bracket, that extra $250 saves them about **$60** in additional federal income tax, plus roughly **$19** in FICA, just from the limit increase alone. Small on its own, but it compounds every year they max out going forward. ## HSA Withdrawal Rules After Age 65 After age 65, HSA rules shift meaningfully: - **Qualified medical expenses:** still completely tax-free - **Any other purpose:** taxed as ordinary income, like a traditional IRA — but **no penalty** This effectively makes the HSA a second [traditional IRA](https://savingtoinvest.com/traditional-ira-versus-roth-ira-contribution-and-phase-out-income-limits/) for retirement. The key difference: use it for medical expenses and you pay zero tax. For many retirees, healthcare costs in retirement are significant enough that a large HSA balance stays entirely tax-free. One important use after 65: HSA funds can pay Medicare Part B premiums, Part D premiums, and Medicare Advantage premiums tax-free. These are often excluded from other retirement accounts’ qualified medical expense definitions. That’s a meaningful advantage. ## Common Issues to Watch Out For **1. Contributing while enrolled in Medicare.** Once you enroll in Medicare (Part A, B, or otherwise), you’re no longer eligible to contribute to an HSA — even if you still have HDHP coverage through a spouse or employer. The enrollment date matters, not when you first become eligible. A lot of people miss this and end up with excess contributions that carry a 6% excise tax per year until corrected. **2. Using HSA funds for non-qualified expenses before 65.** Distributions for non-medical purposes before age 65 are subject to income tax *plus* a 20% penalty. This is steeper than the 10% early withdrawal penalty on IRAs. Don’t tap your HSA for non-medical needs before retirement. **3. Forgetting to invest HSA funds.** Many HSA accounts default to a cash savings account earning near-zero interest. If your balance exceeds the minimum threshold, move the excess into investment options. Cash sitting in an HSA is a missed opportunity. **4. Losing receipts for out-of-pocket medical expenses.** The IRS has no statute of limitations on reimbursing qualified expenses paid out of pocket — as long as you have documentation that the expense occurred and you weren’t previously reimbursed for it. Keep records of every medical expense you pay out of pocket, even years before you plan to claim. You can reimburse yourself from the HSA years or even decades later. **5. Switching from HDHP to a PPO mid-year.** If you contribute the full annual amount and then switch off an HDHP mid-year, you may have excess contributions. The IRS prorates based on months of eligibility. Correct excess contributions before the tax deadline to avoid the 6% excise tax. ## Rolling Over HSA Accounts When you change employers or switch HSA providers, you can roll over HSA funds. The rollover process works similarly to an IRA rollover — direct trustee-to-trustee transfers are the cleanest approach. You get one rollover per 12-month period if you receive the funds yourself (the 60-day rollover rule applies); direct transfers between trustees are unlimited. Major providers like Fidelity now offer self-directed HSA plans with access to broad fund menus and low fees. I’ve moved my HSA to a lower-fee provider before — the transfer takes a week or two, and you’ll need to reselect your investments, but it’s worth it if your current provider has high fees. ## HSA vs. FSA: The Key Difference The biggest practical difference between an HSA and a [Flexible Spending Account (FSA)](https://savingtoinvest.com/flexible-and-dependent-care-spending-accounts-fsa-contribution-limits/) is carryover. FSA funds expire annually (with limited carryover or grace period options). HSA funds roll over indefinitely and are yours even if you leave your employer. If you have access to an HDHP with HSA, the long-term math almost always favors the HSA — especially if you can afford to pay current medical costs out of pocket and let the HSA compound. ## Looking Ahead: 2028 The IRS hasn’t released 2028 HSA figures yet — those typically come out next May, in a Revenue Procedure similar to the one that just confirmed 2027. Based on the roughly 2.3–2.9% increases we saw from 2026 to 2027, here’s a rough projection: Item20272028 (est.)HSA — Individual$4,500~$4,600HSA — Family$9,000~$9,200HDHP min. deductible — Individual$1,750~$1,800HDHP min. deductible — Family$3,500~$3,600HDHP OOP max — Individual$8,700~$8,900HDHP OOP max — Family$17,400~$17,800 These are estimates based on recent inflation trends, not official numbers — I’ll update this section as soon as the IRS confirms 2028 figures, likely in May 2027. The $1,000 catch-up contribution is fixed by statute and won’t move unless Congress changes it. One often-overlooked benefit: HSA contributions made through payroll reduce your W-2 income, which can lower your AGI enough to qualify for (or increase) the [Saver’s Credit](https://savingtoinvest.com/savers-tax-credit-and-income-limits-to-help-workers-save-for-retirement/) — a dollar-for-dollar tax credit worth up to $1,000 ($2,000 for married filers) for lower-to-middle income savers. For the full picture of 2026 retirement and tax-advantaged account limits, see the [401(k) and IRA contribution limits hub](https://savingtoinvest.com/401k-ira-and-roth-ira-contribution-and-income-limits/). Frequently Asked Questions QWhat is the HSA contribution limit for 2026 and 2027? AThe 2026 HSA contribution limit is $4,400 for individual coverage and $8,750 for family coverage. For 2027, the IRS confirmed the limit rises to $4,500 for individual coverage and $9,000 for family coverage in Revenue Procedure 2026-24. If you are age 55 or older, you can add a $1,000 catch-up contribution in either year. QWhat qualifies as an HDHP for HSA purposes in 2026 and 2027? AFor 2026, a qualifying High Deductible Health Plan must have a minimum deductible of $1,700 individual or $3,400 family, with a maximum out-of-pocket limit of $8,500 individual or $17,000 family. For 2027, those thresholds rise to a $1,750 individual or $3,500 family minimum deductible, and an $8,700 individual or $17,400 family out-of-pocket maximum. QDoes a Direct Primary Care membership affect my HSA eligibility? AStarting in 2026, no - as long as the membership fee doesn't exceed $150/month for individual coverage or $300/month for coverage of more than one person. This change came from the One Big Beautiful Bill (OBBB) and was confirmed in IRS Revenue Procedure 2026-24. Before this, many DPC memberships could disqualify you from HSA eligibility. QCan I use my HSA for non-medical expenses? ABefore age 65, non-medical withdrawals are subject to income tax plus a 20% penalty. After age 65, you can withdraw for any reason - but non-medical distributions are taxed as ordinary income (similar to a traditional IRA). Only qualified medical expenses are tax-free at any age. QWhat happens to my HSA if I enroll in Medicare? AOnce you enroll in Medicare (any part), you can no longer make new contributions to your HSA. However, you can continue to use existing HSA funds tax-free for qualified medical expenses, including Medicare premiums for Part B, Part D, and Medicare Advantage plans. Many financial planners recommend building up HSA assets before Medicare enrollment specifically for this purpose. QDo HSA funds expire if I don't use them? ANo. Unlike FSA accounts, HSA funds roll over from year to year without expiration. If you don't use your HSA balance this year, it stays in the account, continues to grow if invested, and is available in future years. This makes HSAs ideal for long-term healthcare savings. QCan both spouses contribute to HSAs? AYes, if both spouses are covered by qualifying HDHP plans. However, the combined household HSA contributions cannot exceed the family maximum ($8,750 in 2026, $9,000 in 2027). If one spouse has individual coverage and one has family coverage, the rules get more complex - consult IRS Publication 969 for the specific calculation. **Categories:** Insurance **Tags:** 2014, 2015, 2016, 2017, contribution, deductible, deduction, health insurance, HSA, Limits, Maximum, medical, MSA --- ### [2026–2027 OBBBA Tax Changes: What the One Big Beautiful Bill Means for Business and Energy Credits](https://savingtoinvest.com/tax-changes-what-the-one-big-beautiful-bill-act-means-for-energy-and-business/) **Published:** September 3, 2025 **Author:** Andy **Content:** ### Key Takeaways - The OBBBA permanently restores 100% bonus depreciation for equipment placed in service after January 19, 2025 - no more phased reductions. - Domestic R&D expensing is permanently restored: companies can immediately deduct R&D costs instead of amortizing over 5 years. - The 20% Qualified Business Income (QBI) deduction for pass-through businesses (sole proprietors, S-corps, partnerships) is now permanent. - Section 179 expensing limits are significantly increased, benefiting small businesses buying equipment outright. - Most residential clean energy credits (solar, geothermal, home efficiency) expired December 31, 2025. The EV tax credit was repealed after September 30, 2025. - The Energy Efficient Commercial Buildings deduction expired June 30, 2026 - only projects placed in service by that date qualify. - Businesses can also deduct employee tip and overtime costs through new employer provisions that parallel the individual deductions. If you run a business — whether it’s a solo consulting practice, a restaurant, or a mid-size manufacturer — the One Big Beautiful Bill Act (OBBBA) changes your tax picture significantly. Some changes are genuinely good news for investment planning. Others close doors that were previously open, especially on the clean energy side. Here’s what matters for your 2026 and 2027 tax strategy, with honest context on both the wins and the losses. *Part of our [OBBBA Tax Guide series](https://savingtoinvest.com/reconciling-trumps-big-beautiful-bill-bbb/) — see all OBBBA provisions in one place.* Covered in this Article: [Toggle](#) - [The Good News for Businesses: Permanent Incentives](#The_Good_News_for_Businesses_Permanent_Incentives) - [The Bad News: Clean Energy Credits Are Largely Gone](#The_Bad_News_Clean_Energy_Credits_Are_Largely_Gone) - [Small Business Planning Takeaways for 2026–2027](#Small_Business_Planning_Takeaways_for_2026%E2%80%932027) - [2027 and 2028 Outlook](#2027_and_2028_Outlook) ## The Good News for Businesses: Permanent Incentives ### 100% Bonus Depreciation — Permanently Restored Before the OBBBA, bonus depreciation was phasing out: 80% in 2023, 60% in 2024, 40% in 2025. The OBBBA reset it to 100% for qualifying property placed in service after January 19, 2025. This is now permanent, not a temporary patch. What this means practically: if your business buys a piece of equipment in 2026 — a CNC machine, a commercial oven, servers, vehicles used for business — you can deduct **the full cost in the year you place it in service** rather than depreciating it over 5–7 years. **Example — Small Manufacturer:** A machine shop owner purchases a $180,000 CNC machine in September 2026. Under bonus depreciation, she deducts the full $180,000 in 2026. At a 24% corporate-equivalent rate, that’s a $43,200 tax reduction — money that stays in the business for payroll and expansion. The permanence is the key here. Before, businesses faced uncertainty about whether depreciation would be phased down further. Now, capital expenditure planning has a stable, predictable baseline. ### R&D Expensing — Permanently Restored One of the most quietly damaging changes in recent years was the 2022 requirement to amortize domestic R&D costs over five years instead of expensing them immediately. The OBBBA restores immediate expensing of domestic R&D — permanently. For tech companies, pharma, advanced manufacturing, and any business that invests in innovation, this is material. An R&D-heavy company spending $5 million on domestic research in 2026 can deduct the full $5 million now rather than $1 million per year over five years. Note: foreign R&D still must be amortized over 15 years. The restoration applies to domestic activities only. ### QBI Deduction — Permanent for Pass-Through Businesses The 20% Qualified Business Income (QBI) deduction for sole proprietors, partnerships, S-corporations, and LLCs was set to expire. The OBBBA made it permanent. If you run a pass-through business and earn $200,000 in qualified business income, you can deduct $40,000 (20%) from your personal taxable income. For most small businesses under the W-2 wage and qualified property limitations, the deduction is straightforward to claim. **Example — Independent Contractor:** Alex runs a marketing consultancy as an S-corp. QBI: $150,000. QBI deduction: $30,000. In the 24% bracket, that’s $7,200 in permanent annual savings — nothing changed from prior law, but the stability of knowing it won’t expire is significant for long-term planning. ### Section 179 Expensing — Increased Limits Section 179 lets businesses immediately expense qualifying equipment up to a dollar limit (as opposed to bonus depreciation, which has no dollar cap but applies to specific property types). The OBBBA increased both the deduction limit and the phase-out threshold: Pre-OBBBAPost-OBBBAMaximum Section 179 deduction$1,160,000 (2023)Significantly increasedPhase-out starts at purchases of$2,890,000Increased proportionally The exact 2026 figures are subject to IRS inflation adjustments (see [IRS.gov](https://www.irs.gov/newsroom/one-big-beautiful-bill-provisions) for current-year limits). The practical effect: more small and mid-size businesses can expense equipment purchases in full without being limited by the old caps. ### Business Deductions for Tips and Overtime Pay Businesses also get a corresponding deduction for the tips and overtime they pay to employees. This means the employer-side costs of the individual no-tax-on-tips and no-tax-on-overtime provisions are also deductible above previous limits. For hospitality and food service businesses, this is a meaningful reduction in effective labor cost for tipped employees. Track these figures separately — they have their own reporting requirements. *→ Individual side of the overtime deduction: [No Tax on Overtime — Who Qualifies and How to Calculate Your Deduction](https://savingtoinvest.com/no-tax-on-overtime-who-qualifies-how-to-calculate-your-deduction-with-e/)* ## The Bad News: Clean Energy Credits Are Largely Gone ### Residential Clean Energy Credits — Expired December 31, 2025 The 30% Residential Clean Energy Credit (for solar panels, solar water heaters, geothermal heat pumps, battery storage, and wind energy) expired at the end of 2025. No extension was included in the OBBBA. The Energy Efficient Home Improvement Credit (for windows, doors, insulation, heat pumps) also expired on December 31, 2025. If you installed solar in 2025, you can still claim the credit on your 2025 return. If you were planning a 2026 installation hoping for a credit, that ship has sailed under current law. **Business impact:** Homeowners who were also counting on these for rental property improvements need to reassess. Commercial properties have a separate timeline (see below). ### Energy Efficient Commercial Buildings Deduction — Expired June 30, 2026 The Section 179D deduction for energy-efficient commercial buildings (new construction or major retrofits) expired on June 30, 2026. This affects commercial landlords, real estate developers, and businesses constructing or significantly renovating commercial facilities. If your qualifying project was **placed in service by June 30, 2026**, you can still claim the deduction on the return for the year the property was placed in service. Projects placed in service after that date no longer qualify. If you’re unsure whether your project made the cutoff, consult a tax professional. ### EV Credits — Repealed The federal EV purchase credits (up to $7,500 for new EVs, $4,000 for used EVs, and credits for commercial EVs) were all repealed for vehicles placed in service after September 30, 2025. This is done. What remains: the new auto loan interest deduction (up to $10,000) applies to personally-purchased new American-made EVs that meet the U.S.-assembly requirement. This doesn’t replicate the old EV credit — it’s significantly smaller — but it does provide some ongoing offset for qualifying EV buyers at income levels under $150,000 (single). ## Small Business Planning Takeaways for 2026–2027 **Accelerate equipment purchases.** With permanent 100% bonus depreciation, there’s no tax incentive to delay capital expenditure. If you need new equipment, buy it and deduct it this year. **Reconsider clean energy projects.** Commercial solar installations can still use accelerated MACRS depreciation (solar equipment is 5-year property), but the direct energy credits are gone. The economics of commercial solar may still work through depreciation — run the numbers with a tax advisor. **Pass-through QBI planning stays relevant.** If you’re near the W-2 wage limitations for the full QBI deduction ($182,400 for single / $364,800 for joint in recent years), consider the QBI optimization strategies that have always applied — W-2 wage payments, property investment, and business structure. **Employer tip and overtime deductions.** If you’re in hospitality, food service, or any sector with significant tipped or overtime-heavy employees, make sure your payroll system is tracking these separately. The deductions compound across both the employer and employee sides. [Subscribe here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to stay current — I’ll update this page as IRS guidance on the commercial building deduction expiration and other details comes in. ## 2027 and 2028 Outlook For most business tax provisions, 2027 will look much like 2026 — permanent changes don’t create year-to-year volatility. The big calendar items: - **June 30, 2026:** Energy Efficient Commercial Buildings deduction expired. No new projects qualify until/unless Congress restores it. - **End of 2028:** The individual tip, overtime, auto loan, and senior deductions expire. This may reduce labor cost planning benefits for employers (since the individual deductions affect employee take-home pay, which in turn affects hiring attractiveness and wage negotiation). From a purely business planning standpoint, the OBBBA creates unusual stability: permanent R&D, permanent QBI, permanent bonus depreciation. The variability from prior tax-cliff years is largely gone for business tax planning. That’s worth something. *Related: [2026–2027 IRS Tax Brackets and Business Rates](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/) — see how C-corp and pass-through rates interact with these new provisions.* Frequently Asked Questions QDid the OBBBA restore 100% bonus depreciation for businesses? AYes, permanently. For qualifying property placed in service after January 19, 2025, businesses can immediately deduct 100% of the cost rather than depreciating it over several years. This applies to equipment, machinery, computers, and certain other property - and it's now permanent, not subject to further phase-out. QIs the QBI deduction permanent under the OBBBA? AYes. The 20% Qualified Business Income deduction for sole proprietors, partnerships, S-corps, and LLCs (pass-through entities) was made permanent by the OBBBA. It was previously set to expire at the end of 2025. QCan businesses still claim solar tax credits after the OBBBA? AThe 30% Residential Clean Energy Credit expired December 31, 2025. The Energy Efficient Commercial Buildings deduction expired June 30, 2026. After those dates, these specific credits are no longer available under current law. Commercial solar may still benefit from accelerated depreciation (5-year MACRS), but the direct credit is gone. QWhat happened to the EV tax credit for businesses? AThe commercial EV tax credit was repealed for vehicles placed in service after September 30, 2025. There is no federal EV purchase credit currently available - for individuals or businesses. The separate auto loan interest deduction (up to $10,000) applies only to personally-financed new vehicles, not business-use vehicles. QHow does R&D expensing work under the OBBBA? ADomestic R&D costs can again be deducted immediately in the year incurred, permanently. This reverses the 2022 change that required 5-year amortization. Foreign R&D still requires 15-year amortization. This applies to qualified research expenses under Section 174. QWhat is the Section 179 deduction limit for 2026? AThe OBBBA increased both the Section 179 deduction limit and the phase-out threshold significantly above prior law. The exact 2026 inflation-adjusted limits are available on IRS.gov. Businesses purchasing qualifying equipment under the new limits can expense it entirely in the year of purchase. **Categories:** Taxes and Retirement --- ### [How to Actually Speak to a Real Person at the IRS — Phone Numbers, Chat, and Tips That Work](https://savingtoinvest.com/how-can-i-actually-speak-to-a-real-person-or-agent-at-the-irs-phone-numbers-that-work/) **Published:** February 19, 2016 **Author:** Andy **Content:** ### Key Takeaways - The main IRS individual helpline is 800-829-1040, available Monday-Friday 7am-7pm local time; average wait is now about 14 minutes during tax season, per the Taxpayer Advocate's June 2026 report - Before calling, try the IRS Online Account at irs.gov/account - you can check refund status, view transcripts, and see payment history without hold time - The IRS now offers a live chat option and a callback option when wait times exceed 15 minutes - both save significant hold time - The best time to call is early morning (before 9am) or Wednesday through Friday; Mondays and Tuesdays have the longest waits - If you have a hardship, the Taxpayer Advocate Service (877-777-4778) can intervene and often resolves issues in weeks rather than months - Do not call about your refund until 21 days after e-filing or 6 weeks after mailing a paper return Getting through to a live IRS agent has always been a battle, and 2026 hasn’t made it easier. Ongoing staffing cuts — accelerated by DOGE-related reductions earlier in the year — have continued to shrink the IRS workforce. At the same time, the IRS is actively pushing taxpayers toward digital and AI-assisted tools before they ever reach a human. That said, it is possible to get a live agent on the line if you use the right approach. But wait times have worsened again: per the National Taxpayer Advocate’s mid-year report (June 2026), the IRS answered only 21% of the 48.1 million calls it received in the 2026 filing season, with average holds of 14 minutes — roughly double the prior year’s 8 minutes. The key is knowing which number to call, which phone menu sequences work, and — critically — trying the online tools first, since they often resolve your issue faster than a call would. Also remember to wait [21 days](https://savingtoinvest.com/no-tax-refund-after-21-days-tips-on-contacting-the-irs/) after filing electronically before calling about your refund. Calling earlier won’t speed anything up. I’ll keep updating this page as things change. [Subscribe here to get notified.](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) Covered in this Article: [Toggle](#) - [Try Online First — It’s Faster Than Calling](#Try_Online_First_%E2%80%94_Its_Faster_Than_Calling) - [The Quick Approach — Phone Sequence That Works](#The_Quick_Approach_%E2%80%94_Phone_Sequence_That_Works) - [Alternative (thanks Sabrina!)](#Alternative_thanks_Sabrina) - [The Comprehensive Approach — IRS Phone Numbers to Try](#The_Comprehensive_Approach_%E2%80%94_IRS_Phone_Numbers_to_Try) - [“Diane’s Method” — A Detailed Phone Sequence](#%E2%80%9CDianes_Method%E2%80%9D_%E2%80%94_A_Detailed_Phone_Sequence) - [Identity Verification](#Identity_Verification) - [The Taxpayer Advocate Service](#The_Taxpayer_Advocate_Service) - [Amended Returns](#Amended_Returns) - [Treasury Offset — If Your Refund Was Reduced](#Treasury_Offset_%E2%80%94_If_Your_Refund_Was_Reduced) - [IRS Taxpayer Assistance Centers (In-Person)](#IRS_Taxpayer_Assistance_Centers_In-Person) - [Why Is It So Hard to Talk to Someone at the IRS?](#Why_Is_It_So_Hard_to_Talk_to_Someone_at_the_IRS) - [When Should I Call the IRS?](#When_Should_I_Call_the_IRS) - [Best Time of Day to Call](#Best_Time_of_Day_to_Call) - [Looking Ahead: 2027 IRS Contact Options](#Looking_Ahead_2027_IRS_Contact_Options) ## Try Online First — It’s Faster Than Calling Before dialing, I’d genuinely recommend spending 5 minutes with the IRS’s online tools. They’ve improved significantly over the last few years and handle most common refund and account questions without any hold time. - **[Where’s My Refund?](https://www.irs.gov/refunds)** — The official refund tracker. Updates once daily (usually overnight). Shows status for e-filed returns within 24 hours of IRS acceptance, and for paper returns about 4 weeks after mailing. - **[IRS Online Account](https://www.irs.gov/payments/online-account-for-individuals)** — Log in to see your full tax account: refund status, transcripts, balance due, payment history, and notices. This is the fastest way to get information a phone agent would otherwise look up for you. - **IRS Live Chat** — The IRS now offers live chat at [irs.gov/help](https://www.irs.gov/help/let-us-help-you). Availability varies by topic; worth checking before picking up the phone. - **[IRS Document Upload Tool](https://www.irs.gov/help/irs-document-upload-tool)** — If you received a notice asking for documentation, you can upload it directly online instead of mailing or faxing. If the online tools don’t resolve it — or if you need to verify your identity or have a complex situation — then call. ## The Quick Approach — Phone Sequence That Works 1. Call **1-800-829-0582** (amended refund line) 2. **Do NOT press 1** for English immediately 3. Wait for the full automated message to finish, then enter extension **652** 4. Expect to wait on hold — redial if the system disconnects you. Most people report reaching an agent within 10–20 minutes. This has been the most consistently reported working method across hundreds of comments on this post over several years. It doesn’t work 100% of the time — IRS phone menus do get updated — but it’s worth trying first. ### Alternative (thanks Sabrina!) - Dial **1-800-829-1040** - Press **1** (English) - Press **2** - Enter **000000** - Stay on the line regardless of what the automated system says — you’ll be put through to a representative ## The Comprehensive Approach — IRS Phone Numbers to Try If the quick approach isn’t working, here’s a broader toolkit of IRS phone numbers to try. Start with the one that looks closest to your issue and then work through others in the list: - **General individual assistance:** [800-829-1040](tel:800-829-1040) — 7am to 7pm local time, Monday–Friday. Do NOT press 1 for “Refund” — it routes you to an automated loop. Press 2 for “personal income tax” instead, then navigate to “all other questions.” - **Transcript by phone:** [800-908-9946](tel:800-908-9946) — automated transcript ordering. To get a live agent to review your transcript, use the main 829-1040 line. - **Identity verification:** [1-800-830-5084](tel:800-830-5084) — if you received a 4883C or 5071C letter asking you to verify your identity. You can also verify online at [irs.gov/verify](https://www.irs.gov/identity-theft-fraud-scams/verify-your-return). - **Amended return status:** [1-866-464-2050](tel:866-464-2050) — call only after 16 weeks from mailing your amended return, or if Where’s My Amended Return directs you to call. - **Treasury Offset (debt offsets):** [800-304-3107](tel:800-304-3107) — if your refund was reduced due to an outstanding debt. Select option 1 for the automated amount and creditor agency. Dispute with the creditor agency directly. - **TTY/TDD (hearing impaired):** [800-829-4059](tel:800-829-4059) ## “Diane’s Method” — A Detailed Phone Sequence This approach has been reported as working by many readers in the comments: Dial **800-829-1040** → Press **1** (English) → Press **2** → then **1** → then **3** → then **2** → enter the *primary* Social Security number on your return → wait for SSN confirmation → **do not press any more options** → hold and you’ll be connected to an agent. A few tips that improve your odds: - Call before 9am or between 10am–noon for shorter waits - Wednesday through Friday tend to have shorter queues than Monday and Tuesday - If the system says it can’t take your call and hangs up, redial — it sometimes takes several attempts during peak periods - The IRS now offers a **callback option** when wait times exceed 15 minutes. If prompted, always take it — they’ll call you back rather than making you sit on hold Note: IRS phone menus do get updated, so exact button sequences may shift. The general logic still holds: choose “personal income tax” over “refund,” and work toward “all other questions” to avoid automated dead-ends. ## Identity Verification If you’ve been asked to verify your identity, here are the current options: - **Online:** [irs.gov/verify](https://www.irs.gov/identity-theft-fraud-scams/verify-your-return) — the fastest option. The IRS uses ID.me for online identity verification; you’ll need a financial account or credit card to complete it. - **By phone:** [1-800-830-5084](tel:800-830-5084) — have your prior-year tax return, SSN, and a credit report-level question ready. - **In person:** Schedule an appointment at your local [Taxpayer Assistance Center](https://apps.irs.gov/app/officeLocator/index.jsp) — see the TAC section below. If cleared, the IRS may say it will take up to 9 weeks to issue your refund. In practice it’s often sooner, but plan accordingly. *[Subscribe here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get notified when IRS contact options or wait time data changes.* ## The Taxpayer Advocate Service If you have a genuine hardship — you can’t pay rent, you’ve received a levy notice, your return has been stuck for months — the Taxpayer Advocate Service (TAS) is often the most effective option. Call **1-877-777-4778**, option 1, option 1. TAS advocates can pull up your return, identify what’s causing the hold, and in many cases get things resolved within 1–2 weeks when a regular IRS call would tell you to wait 60–120 days. You can also request a Form 911 (Request for Taxpayer Advocate Service Assistance) directly from any IRS agent on the phone — just tell them you have a hardship. TAS is a free, independent service. If anyone tells you they charge a fee, that’s a scam. See more in our guide: [How to contact a Tax Advocate and when to use them.](https://savingtoinvest.com/contact-a-tax-advocate-to-help-get-your-refund-released-from-the-irs/) ## Amended Returns Amended returns are processed separately from regular returns and typically take longer — up to 20 weeks in some cases. Check status at [Where’s My Amended Return?](https://www.irs.gov/filing/wheres-my-amended-return) online or call **1-866-464-2050**. Wait at least **16 weeks** after mailing before calling — calling sooner won’t provide any useful information. See the full guide: [Amended return refund schedule, rules, and Form 1040-X deadlines.](https://savingtoinvest.com/amended-tax-return-refund-schedule-rules-form-1040x-and-deadlines/) ## Treasury Offset — If Your Refund Was Reduced If your refund was smaller than expected and you owe back debt (child support, federal student loans, state taxes, etc.), your refund may have been offset by the Treasury Offset Program. Call **800-304-3107** for an automated message with the amount, date, and which agency your refund went to. To dispute it, you’ll need to contact that agency directly — the IRS can’t override another agency’s debt collection. More detail: [Tax Topic 203: refund offset explained.](https://savingtoinvest.com/irs-refund-adjustments-and-treasury-bfs-offsets-tax-topic-codes-203-598-or-898/) ## IRS Taxpayer Assistance Centers (In-Person) The IRS has over 360 walk-in Taxpayer Assistance Centers across the country. Appointments are required — drop-in is no longer available at most locations. To schedule: call **844-545-5640** or use the [TAC locator tool](https://apps.irs.gov/app/officeLocator/index.jsp) at irs.gov. In-person appointments are especially useful for identity verification and resolving notices, since you can bring original documents. ## Why Is It So Hard to Talk to Someone at the IRS? The short answer: demand has outpaced capacity for years, and recent staffing reductions haven’t helped. The IRS handles over 150 million individual returns annually and fields tens of millions of phone calls each filing season. DOGE-related federal workforce cuts in early 2025 accelerated IRS staffing reductions. The IRS has partially offset this by expanding digital self-service tools — which is why trying online first genuinely saves time in 2026 in a way it didn’t in 2022. The [Where’s My Refund tool](https://savingtoinvest.com/wmr-and-irs2go-status-differences-return-received-accepted-or-under-review-and-refund-approved-versus-refund-sent/) remains the IRS’s preferred channel for refund status questions — they’re actively routing calls away from phone lines toward it. ## When Should I Call the IRS? The IRS asks you to wait before calling: - **E-filed return:** 21 days before calling about your refund - **Paper return:** 6 weeks — the IRS needs time to load paper returns into their systems - **Amended return:** 16 weeks - **Injured Spouse (Form 8379):** 11–14 weeks for e-filed, 14 weeks for paper If the IRS needs something before those timeframes, they’ll contact you by mail — never by phone or email unprompted. For help understanding a notice you received, see our guide to [IRS notices and letters.](https://savingtoinvest.com/should-i-be-worried-if-i-get-an-irs-notice-or-letter-will-it-affect-my-tax-return-processing-or-refund-payment/) ## Best Time of Day to Call Based on IRS data and consistent reader feedback: - **Best days:** Wednesday, Thursday, or Friday - **Best time:** Right when lines open at 7am local time, or 10–11am before the midday rush - **Avoid:** Mondays and Tuesdays, and the week of April 15 - **Take the callback:** If the system offers a callback rather than hold, always take it Per the National Taxpayer Advocate’s 2026 mid-year report, telephone assistors answered just 9.9 million of 48.1 million calls (21%) this filing season, with average waits of about 14 minutes — down from 25% answered and 8-minute waits the prior year. Outside filing season (May–December), expect 15 minutes or longer on some lines. ## Looking Ahead: 2027 IRS Contact Options The IRS has signaled it will continue expanding digital and AI-assisted service options through 2027. A few things I’m watching: - **Expanded live chat:** The IRS has been piloting broader chat availability and may extend it to more inquiry types — currently limited to specific topics - **IRS Direct File:** The IRS’s own free filing tool continues expanding state coverage; broader adoption should reduce post-filing call volume over time - **Staffing trajectory:** Whether Congress restores or further reduces IRS funding in late 2026 appropriations will directly affect phone service levels in 2027 I’ll update this page when meaningful changes happen. [Subscribe here to stay current.](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) Frequently Asked Questions QWhat is the main IRS phone number to speak to a live person? AThe main IRS individual helpline is 1-800-829-1040, available Monday through Friday, 7am to 7pm local time. For the best chance of reaching a live agent, do not select the Refund option. Instead press 2 for personal income tax, then navigate to all other questions. QWhat is the fastest way to get IRS refund status without calling? AUse the Where's My Refund? tool at irs.gov/refunds. It updates daily and shows status for e-filed returns within 24 hours of IRS acceptance. For a full account view including transcripts and payment history, log in to your IRS Online Account at irs.gov/account. QHow long is the IRS hold time in 2026? AAverage waits ran about 14 minutes during the 2026 filing season, with only 21% of calls reaching a live assistor, per the National Taxpayer Advocate's mid-year report. Waits are longer on Mondays and Tuesdays and around major deadlines. If wait times exceed 15 minutes, the IRS may offer a callback option so you don't have to sit on hold. QWhat is the best phone sequence to reach a live IRS agent? AOne widely reported approach: call 1-800-829-0582, do not press 1 for English, wait for the full automated message, then enter extension 652. Another method on 1-800-829-1040: press 1 (English), 2, 1, 3, 2, then enter the primary SSN and hold without pressing any further options. QWhat is the Taxpayer Advocate Service and when should I use it? AThe Taxpayer Advocate Service (TAS) is a free, independent IRS office that helps taxpayers experiencing financial hardship or who cannot resolve their issue through normal IRS channels. Call 1-877-777-4778. TAS can often resolve issues within 1-2 weeks that would otherwise take months through regular IRS channels. QHow do I verify my identity with the IRS? AIf you received a 5071C or 4883C letter asking you to verify your identity, you can verify online at irs.gov/verify (fastest) or by calling 1-800-830-5084. You can also schedule an in-person appointment at a Taxpayer Assistance Center by calling 844-545-5640. QWhen should I call the IRS about my refund? AThe IRS asks you to wait 21 days after e-filing before calling about a refund, or 6 weeks after mailing a paper return. Calling before these windows will not get you new information - the agent will tell you the same thing the Where's My Refund tool already shows. QHow do I check if my refund was offset by the Treasury? ACall the Treasury Offset Program at 800-304-3107. Select option 1 for an automated message with the offset amount and the creditor agency. To dispute the offset, contact the creditor agency directly - the IRS and Treasury cannot override another agency's debt collection. **Categories:** Taxes and Retirement **Tags:** agent, contact, IRS, phone --- ### [Best Job Prospects for 2026 and Beyond: What the Latest BLS Data Shows Is Actually Growing](https://savingtoinvest.com/best-job-prospects-and-employment/) **Published:** December 20, 2019 **Author:** Andy **Content:** ### Key Takeaways - BLS projects the U.S. economy will add 5.2 million jobs between 2024 and 2034, a 3.1% growth rate overall - Healthcare and social assistance remains the single biggest driver of new jobs - home health and personal care aides alone are projected to add 739,800 jobs, more than any other occupation - Computer and mathematical occupations are the second-fastest-growing occupational group (+10.1%), more than three times the economy-wide average - Fastest percentage growth: nurse practitioners (+40.1%), data scientists (+33.5%), and information security analysts (+28.5%) - Software developers remain a top-10 job-growth occupation by raw numbers (+267,700 jobs) with a $133,080 median wage - despite AI-driven disruption concerns in tech hiring - Skilled trades - electricians, industrial machinery mechanics - are growing faster than the last major projection cycle predicted, as demand outpaces the pipeline of trained workers - June 2026's soft jobs report (57,000 added, 4.2% unemployment) is a reminder that the 10-year trend and the current month can diverge - both matter for career planning The national unemployment rate was 4.2% in June 2026, and the economy added just 57,000 jobs that month — well below expectations, with leisure and hospitality actually losing jobs while healthcare and professional services kept growing. It’s a mixed, uneven labor market, and it makes the question of where the durable job growth actually is more relevant than it’s been in years. The Bureau of Labor Statistics publishes 10-year occupational projections, and the current cycle (2024–2034) is the clearest read available on where employment is headed. I’m updating this page with that data, replacing projections from prior decades that are now well out of date. Covered in this Article: [Toggle](#) - [The Occupations Adding the Most Jobs (2024–2034)](#The_Occupations_Adding_the_Most_Jobs_2024%E2%80%932034) - [Where the Fastest Percentage Growth Is](#Where_the_Fastest_Percentage_Growth_Is) - [Skilled Trades Are Quietly a Strong Bet](#Skilled_Trades_Are_Quietly_a_Strong_Bet) - [Where the Softness Is](#Where_the_Softness_Is) - [How to Use This Data for a Career Decision](#How_to_Use_This_Data_for_a_Career_Decision) - [Looking Ahead: 2027 Job Market Outlook](#Looking_Ahead_2027_Job_Market_Outlook) ## The Occupations Adding the Most Jobs (2024–2034) BLS Employment Projections data shows where the largest number of new positions are actually expected, not just the fastest percentage growth — a more useful lens if you care about how many total openings will exist: Occupation2024 EmploymentProjected 2034 EmploymentNew JobsMedian Annual WageHome health and personal care aides4.35M5.09M+739,800$34,900Software developers1.69M1.96M+267,700$133,080Stockers and order fillers2.76M3.00M+235,000$37,090Fast food and counter workers3.80M4.03M+233,200$30,480Registered nurses3.39M3.56M+166,100$93,600Medical and health services managers616,200759,100+142,900$117,960Financial managers868,600997,400+128,800$161,700Nurse practitioners320,400448,800+128,400$129,210Computer and information systems managers667,100768,700+101,600$171,200Data scientists245,900328,300+82,500$112,590 More than half of the largest job-growth occupations are in healthcare or directly support an aging population’s care needs. That’s been true for two decades of BLS projections running now — it isn’t a new trend, but it’s an even stronger one this cycle. ## Where the Fastest Percentage Growth Is Raw job counts favor already-large occupations. Looking at percentage growth instead surfaces smaller but rapidly expanding fields — often a better signal for where demand is outpacing supply of trained workers: - **Nurse practitioners:** +40.1% — the fastest-growing healthcare occupation in this cycle, driven by expanded scope-of-practice laws and primary care shortages - **Data scientists:** +33.5% — reflects continued enterprise investment in analytics and AI infrastructure - **Information security analysts:** +28.5% — cybersecurity hiring hasn’t slowed despite broader tech-sector volatility - **Medical and health services managers:** +23.2% — healthcare’s administrative and management layer is growing alongside clinical roles - **Home health and personal care aides:** +17.0% — the largest occupation in the entire economy is also still growing fast in percentage terms, not just raw numbers Wind turbine service technicians and solar photovoltaic installers remain the two fastest-growing occupations by percentage of any in the BLS database, though the total number of jobs involved is small (under 20,000 combined) — a reminder that “fastest growing” and “most opportunities” aren’t the same question. ## Skilled Trades Are Quietly a Strong Bet Electricians (+9.5%, $62,350 median wage), industrial machinery mechanics (+16.1%, $63,760), and construction laborers (+7.3%, $46,730) all show solid growth — and anecdotally, trade programs report demand from employers outpacing the number of workers coming through apprenticeships. Unlike software roles, these occupations aren’t exposed to the same AI-driven hiring slowdown currently playing out in parts of tech. If you’re weighing a vocational path against a four-year degree, this cycle’s data is a genuine point in favor of the trades — not just a consolation option. ## Where the Softness Is Tech hiring has been the most-discussed weak spot of 2026’s labor market — not because software roles are disappearing from the BLS 10-year projection (they aren’t; software developers still add nearly 268,000 jobs this decade), but because near-term hiring has slowed as companies weigh AI-assisted productivity gains against headcount. I cover this shift in more detail in my [tech layoffs and the AI hiring shift guide](https://savingtoinvest.com/tech-layoffs-and-the-ai-shift-what-ongoing-job-cuts-mean-for-your-career-and-wallet/). Leisure and hospitality lost jobs in the June 2026 report specifically, a sector that tends to be more sensitive to discretionary consumer spending than healthcare or professional services. *Job market data shifts monthly and BLS projections update on a multi-year cycle — [subscribe here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) and I’ll flag meaningful changes as they land.* ## How to Use This Data for a Career Decision A couple of practical notes if you’re weighing a degree, certification, or career change against this data: - **Weigh total openings against percentage growth.** A field growing 5% with 500,000 jobs added has more actual opportunities than one growing 40% off a tiny base. - **Check the education/training path against the wage.** Several of the fastest-growing skilled trades pay competitively without a four-year degree — factor in the earnings-versus-debt tradeoff honestly. - **Treat 10-year projections as a backdrop, not a guarantee.** A single month’s jobs report (like June 2026’s soft 57,000 print) doesn’t invalidate a decade-long trend, but sector-specific disruption — like AI’s effect on entry-level tech hiring — can move faster than a 10-year BLS cycle captures. ## Looking Ahead: 2027 Job Market Outlook BLS updates its 10-year occupational projections roughly every two years, so the current 2024–2034 cycle should remain the reference point through 2027. What I’m watching in the meantime: whether AI-driven productivity tools continue to soften entry-level hiring in software and other white-collar roles faster than the multi-year projections anticipated, and whether the healthcare hiring boom continues at its current pace as an aging population’s care needs grow. I’ll update this page if BLS releases a new projection cycle or if monthly employment data shows a meaningful trend shift. **Related reading:** - [Tech layoffs and the AI shift: what ongoing job cuts mean for your career and wallet](https://savingtoinvest.com/tech-layoffs-and-the-ai-shift-what-ongoing-job-cuts-mean-for-your-career-and-wallet/) - [The tax and financial planning playbook for 2026–2027](https://savingtoinvest.com/tax-and-financial-planning-playbook/) Frequently Asked Questions QWhat jobs are growing the fastest according to the BLS? ABy percentage, wind turbine service technicians and solar photovoltaic installers are the fastest-growing occupations, followed by nurse practitioners (+40.1%), data scientists (+33.5%), and information security analysts (+28.5%) over the 2024-2034 projection period. QWhat occupation is adding the most total jobs? AHome health and personal care aides are projected to add 739,800 jobs between 2024 and 2034, more than any other single occupation, reflecting the country's aging population and growing long-term care needs. QAre software developer jobs still growing despite AI and tech layoffs? AYes, according to BLS's 10-year projection, software developers are projected to add 267,700 jobs through 2034 with a median wage of $133,080. Near-term hiring has slowed in parts of tech as companies weigh AI-assisted productivity against headcount, but the occupation remains one of the largest sources of job growth in the economy. QWhat was the unemployment rate in June 2026? AThe unemployment rate was 4.2% in June 2026, with the economy adding a weaker-than-expected 57,000 jobs for the month, according to the Bureau of Labor Statistics Employment Situation report. QAre skilled trades a good career bet right now? AThe data supports it. Electricians, industrial machinery mechanics, and other skilled trades show solid projected growth and competitive median wages, and these roles are less exposed to the AI-driven hiring slowdown affecting some white-collar and tech occupations. QHow often does the BLS update its job growth projections? AThe Bureau of Labor Statistics typically releases a new 10-year occupational projection cycle every one to two years. The current cycle covers 2024 to 2034. **Categories:** Career and Relationships, Economy **Tags:** 2011, 2012, 2013, career, Economy, Employment, jobs, outlook --- ### [What a Strong or Weak Dollar Actually Means for Your Money in 2026](https://savingtoinvest.com/us-dollar-rising-and-outlook/) **Published:** October 23, 2008 **Author:** Andy **Content:** ### Key Takeaways - The Dollar Index (DXY) measures the dollar against six major currencies (euro, yen, pound, Canadian dollar, Swedish krona, Swiss franc) and has traded near 100-101 through mid-2026 - The dollar strengthened through the first half of 2026 largely because the Fed held interest rates at 3.50%-3.75% rather than cutting as some analysts expected, with inflation still running above the Fed's 2% target - A strong dollar generally means cheaper imports, cheaper overseas travel, and often lower gas and commodity prices - but it squeezes U.S. exporters and can weigh on the overseas earnings of American multinational companies - A weak dollar works in reverse: pricier imports and travel, but a tailwind for U.S. exporters, commodity prices, and the dollar value of foreign investments and gold - If you hold international stock funds or gold in a diversified portfolio, dollar moves are already partly working as a hedge - you don't need to actively trade currencies to benefit - Currency forecasts are genuinely uncertain even among professional analysts - treat any specific price target, including the ones in this post, as a snapshot of current thinking, not a prediction to bet on The U.S. Dollar Index (DXY) — a measure of the dollar against a basket of six major currencies — has been trading around 100 to 101 in mid-2026, after the Federal Reserve held its benchmark rate at 3.50%-3.75% at its June 17 meeting. That’s a meaningfully stronger dollar than the weakness many analysts predicted at the start of the year. Most people never look at a currency index and don’t need to. But the dollar’s strength or weakness quietly shows up in your grocery bill, your vacation budget, your gas price, and — if you hold international funds or own shares of multinational companies — your investment statements. Here’s what actually changes for you in either direction, without the trading jargon. Covered in this Article: [Toggle](#) - [What the Dollar Index Actually Measures](#What_the_Dollar_Index_Actually_Measures) - [Why the Dollar Strengthened in 2026](#Why_the_Dollar_Strengthened_in_2026) - [What a Strong Dollar Means for You](#What_a_Strong_Dollar_Means_for_You) - [What a Weak Dollar Means for You](#What_a_Weak_Dollar_Means_for_You) - [How This Shows Up in Your Portfolio (Without Trading Currencies)](#How_This_Shows_Up_in_Your_Portfolio_Without_Trading_Currencies) - [How to Think About This as a Saver, Not a Trader](#How_to_Think_About_This_as_a_Saver_Not_a_Trader) - [Looking Ahead: The Rest of 2026 and Into 2027](#Looking_Ahead_The_Rest_of_2026_and_Into_2027) ## What the Dollar Index Actually Measures The DXY tracks the dollar’s value against a basket of major currencies, most heavily the euro. When people say “the dollar is rising,” they usually mean this index — or a specific pair like USD/EUR or USD/JPY — is moving. Currencies trade in pairs: if you’re looking at EUR/USD, you’re simultaneously watching the price of buying euros with dollars. Every currency has a three-letter code — USD, EUR (euro), GBP (British pound), JPY (Japanese yen), CAD (Canadian dollar) — and these six pairings make up the bulk of global currency trading volume. You don’t need to know more than that to understand what “dollar strength” means for your own finances; the mechanics of active currency trading are a separate (and separately risky) pursuit from just understanding the effect on your money. ## Why the Dollar Strengthened in 2026 Heading into 2026, several major banks expected dollar weakness on the assumption the Fed would keep cutting rates. That didn’t happen. Inflation remained elevated relative to the Fed’s 2% target — partly from energy-related supply shocks — and [the Federal Reserve held its benchmark rate at 3.50%-3.75%](https://www.federalreserve.gov/newsevents/pressreleases/monetary20260617a.htm) at its June 17 meeting, with committee members split between holding steady and hiking further rather than cutting. Higher-for-longer U.S. rates make dollar-denominated assets more attractive to global investors relative to lower-yielding alternatives, which is the core mechanical reason the dollar strengthened rather than weakened this year. Resilient U.S. economic growth relative to other major economies has reinforced the same dynamic. Some analysts still flag caution: dollar-valuation models from firms like Morningstar have suggested the DXY may be running ahead of fundamental fair value, driven more by rate differentials and risk-off sentiment than a durable structural shift. That’s a genuine open debate among currency analysts, not a settled call — worth knowing rather than treating either direction as certain. ## What a Strong Dollar Means for You - **Cheaper imports.** Anything made overseas — electronics, cars, clothing — effectively costs less in dollar terms. - **Cheaper overseas travel.** Your dollars buy more in local currency, from hotel rooms to meals. - **Often lower gas and commodity prices**, since oil and many global commodities are priced in dollars — a stronger dollar tends to make them relatively cheaper. - **Headwinds for U.S. exporters and multinationals.** American goods become more expensive for foreign buyers, and profits multinational companies earn overseas translate back into fewer dollars — something that can show up in earnings reports for companies you hold in index funds. - **Less favorable for money sent abroad.** If you send remittances or support family overseas, a strong dollar is good for you but means the recipient gets less in their local currency per dollar sent, all else equal. ## What a Weak Dollar Means for You - **Pricier imports and travel** — the mirror image of the above, and a contributor to domestic inflation when it happens. - **A tailwind for U.S. exporters**, whose goods become more price-competitive abroad. - **Often higher commodity and gold prices**, since a weaker dollar historically has an inverse relationship with gold — see our [gold price outlook](https://savingtoinvest.com/gold-price-outlook-golden-investment-in/) for more on that dynamic specifically. - **A boost for unhedged foreign investments.** If you hold international stock funds, their returns get an added lift when translated back into weaker dollars. ## How This Shows Up in Your Portfolio (Without Trading Currencies) You don’t need a forex account to have exposure to dollar moves — if you hold a reasonably diversified portfolio, you likely already do: - **International stock or bond funds** move with currency swings in addition to the underlying securities’ performance - **Gold and other commodities** often (not always) move inversely to the dollar - **U.S. multinational company earnings** get a translation effect from overseas revenue, visible in quarterly earnings commentary - **[TIPS (Treasury Inflation-Protected Securities)](https://savingtoinvest.com/how-and-why-to-buy-treasury-inflation/)** are more directly tied to domestic inflation than currency moves, but the two often move together when the Fed’s rate path is the common driver If you’re not already diversified across US and international holdings, that’s a more useful lever to think about than trying to time currency moves directly — see our [portfolio diversification guide](https://savingtoinvest.com/importance-of-diversification/) for the basics. *Currency and rate dynamics shift with every Fed meeting — [subscribe here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) and I’ll flag it when the picture changes meaningfully.* ## How to Think About This as a Saver, Not a Trader Active currency trading is a genuinely different — and genuinely riskier — activity than understanding how the dollar affects your finances passively. It’s estimated only a minority of active currency traders make money consistently, and it requires real time and education to do well. For most people, the useful takeaway isn’t “should I trade EUR/USD” — it’s understanding why your next overseas trip feels cheaper or pricier than last year’s, why gas prices moved the way they did, and why a diversified portfolio with some international exposure already captures some of this dynamic without you needing to actively manage it. ## Looking Ahead: The Rest of 2026 and Into 2027 Current analyst forecasts for the DXY through the rest of 2026 span a fairly wide range — some see the index holding in the mid-90s to low-100s, others expect further strength toward 103-104 if the Fed leans toward another hike rather than a cut. Both scenarios are genuinely on the table given the Fed’s own split committee. The dominant variable heading into 2027 is the same one driving 2026: whether inflation cools enough for the Fed to resume cutting rates, or whether energy-related price pressures keep rates higher for longer. I’ll update this page as Fed policy and the resulting dollar trajectory become clearer — treat any specific number here as a snapshot of current thinking, not a forecast to plan around. **Related reading:** - [Gold price outlook and forecast](https://savingtoinvest.com/gold-price-outlook-golden-investment-in/) - [Buying Treasury Inflation-Protected Securities (TIPS)](https://savingtoinvest.com/how-and-why-to-buy-treasury-inflation/) - [The importance of portfolio diversification](https://savingtoinvest.com/importance-of-diversification/) Frequently Asked Questions QWhy is the dollar strong in 2026? AThe dollar strengthened mainly because the Federal Reserve held interest rates at 3.50%-3.75% rather than cutting as some analysts had expected, with inflation still running above the Fed's 2% target. Higher U.S. rates make dollar-denominated assets more attractive to global investors relative to other currencies. QWhat does a strong dollar mean for consumers? AA strong dollar generally means cheaper imported goods, cheaper overseas travel, and often lower gas and commodity prices, since many are priced in dollars globally. It's less favorable for U.S. exporters and for money sent abroad as remittances. QDoes a weak dollar make my international investments worth more? AOften yes, for unhedged international stock or bond funds. When the dollar weakens, foreign investment returns get an added boost when translated back into dollars, and commodities like gold have historically (though not always) moved inversely to the dollar. QWhat is the Dollar Index (DXY)? AThe DXY measures the U.S. dollar's value against a basket of six major currencies, most heavily the euro. It's the most commonly cited benchmark for describing whether 'the dollar' is broadly rising or falling. QShould I trade currencies to take advantage of dollar movements? AActive currency trading is a distinct, higher-risk activity from passive exposure through a diversified portfolio. Most individual currency traders don't make money consistently. For most savers, holding a diversified mix of U.S. and international assets captures much of the relevant exposure without active currency trading. **Categories:** Options and Currency **Tags:** currency, dollar, investors, US --- ### [Couples and Money: How to Set Expectations and Avoid Financial Disagreements](https://savingtoinvest.com/tips-for-avoiding-financial-disagreements/) **Published:** March 17, 2017 **Author:** Andy **Content:** ### Key Takeaways - Most money arguments start because expectations were never discussed, not because partners disagree on the actual numbers - A classic and common mismatch: one partner is a 'spender,' the other a 'saver' - the friction is manageable once you name it and compromise explicitly - Build a household budget together, even if one partner naturally handles the day-to-day finances - both people need visibility into where the money goes - Give each partner discretionary 'no questions asked' spending money, even a small amount - financial disagreements escalate fastest when neither person can spend anything without an interrogation - Talk with financial professionals together (advisors, tax preparers, lawyers) so both partners understand the household's finances, not just one - When an argument keeps resurfacing, it's often not really about money - it's about deeper feelings on trust, priorities, or security. Naming that directly moves the conversation further than re-litigating the dollar amount “What’s hers is hers, and what’s mine is hers — that’s how we share our money!” That joke lands because most couples never actually spell out how they handle money. Each partner just assumes the other shares their views, and that assumption is usually wrong. Money is one of the most common sources of relationship tension, and it’s rarely really about the dollar amount. This is a practical guide to the expectations couples should set explicitly, and the specific disagreements that come up once you’re actually managing money together. Covered in this Article: [Toggle](#) - [Start With Expectations, Not Rules](#Start_With_Expectations_Not_Rules) - [Problem: Spending Irregularities](#Problem_Spending_Irregularities) - [Problem: “Did You Pay That Bill? I Thought You Said You Would”](#Problem_%E2%80%9CDid_You_Pay_That_Bill_I_Thought_You_Said_You_Would%E2%80%9D) - [Problem: How Do We Manage Money and Still Have Control?](#Problem_How_Do_We_Manage_Money_and_Still_Have_Control) - [Problem: Should We Buy the TV or Upgrade the Kitchen?](#Problem_Should_We_Buy_the_TV_or_Upgrade_the_Kitchen) - [Problem: Our Finances Are a Mess — Who Do We Ask for Help?](#Problem_Our_Finances_Are_a_Mess_%E2%80%94_Who_Do_We_Ask_for_Help) - [Problem: Is Money Really the Problem?](#Problem_Is_Money_Really_the_Problem) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## Start With Expectations, Not Rules Most financial friction between couples traces back to expectations that were never actually discussed — each partner just assumed the other agreed with them. A few areas are worth an explicit conversation early, not after a disagreement forces it: **Your overall views on money.** One of the most common sources of tension is a “spender” paired with a “saver.” Neither view is wrong, but if you disagree strongly on the value of a cash cushion versus enjoying money now, that gap needs a conversation and a compromise, not a silent standoff. **Your big financial goals.** Couples often have different priorities — a house down payment, paying off debt, a career change, a vacation. If goals are disparate and unspoken, the odds either one actually happens go down. Sit down at least once a year and agree on what matters most as a couple, then build a plan around it. **Your day-to-day money management system.** Someone usually ends up handling bill-pay and account balancing, whether by default or agreement. The specific system matters less than making sure it was actually discussed — resentment builds fast when one partner carries the load without ever agreeing to. If one of you handles the finances and it’s clearly not working, address it directly rather than letting it drift. The goal isn’t a perfect system; it’s a system both people actually agreed to. ## Problem: Spending Irregularities **Solution:** Build your household budget together and revisit it periodically. Even if one partner is naturally better with money, both need to understand where it’s going. Needless arguments happen when one partner has no idea what kids’ clothes cost or how much the heating bill crept up this year. See our [budgeting pitfalls and remedies guide](https://savingtoinvest.com/budgeting-pitfalls-and-remedies/) for common budget mistakes worth fixing together. ## Problem: “Did You Pay That Bill? I Thought You Said You Would” **Solution:** Keep financial documents organized and visible to both of you — bank statements, insurance policies, tax records. Automate bill payments where possible, but still check statements regularly to confirm the right amounts are going out (and that you still need that subscription neither of you uses). Calendar reminders for irregular payments — an annual insurance premium, a quarterly estimated tax payment — feel like overkill until the one time they save you a late fee. ## Problem: How Do We Manage Money and Still Have Control? **Solution:** Decide deliberately on your account structure. A common approach when both partners earn income: a joint savings account for long-term goals, a joint checking account for household bills, and separate checking accounts for individual spending — each contributing to the joint accounts in proportion to income. Other couples simplify to fewer accounts; there’s no universally correct structure. Whatever you choose, make sure each partner has some discretionary money they can spend without explaining themselves. Disagreements escalate fastest when either partner feels every purchase requires a defense. ## Problem: Should We Buy the TV or Upgrade the Kitchen? **Solution:** Make big purchases jointly, even when either of you could easily afford it alone. Talking through major purchases together is less about the money and more about treating each other as financial partners, not just romantic ones. ## Problem: Our Finances Are a Mess — Who Do We Ask for Help? **Solution:** Bring in professionals together, not separately. When you need a lawyer, tax preparer, or [financial advisor](https://savingtoinvest.com/how-to-choose-the-right-financial-advisor/), attend those conversations as a couple so both of you can ask questions and hear the answers directly. This does double duty: it prevents misunderstandings now, and it means either partner could step in and manage things alone if an emergency required it. ## Problem: Is Money Really the Problem? **Solution:** Look past the dollar figure. Marriage counselors consistently find that money arguments are often proxies for something bigger — differing views on security, trust, or what the relationship is actually building toward. Try shifting from the transaction to the feeling behind it. Instead of “you spent $900 on a phone without asking,” try “when you make a purchase like that without telling me, I feel like my opinion doesn’t factor into our decisions.” Instead of relitigating a specific expense, try naming the actual worry: “I love our trips together, but I feel anxious that we don’t have savings to fall back on if one of us got sick.” *[Subscribe here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) for more practical guides on managing money as a household.* ## Common Issues to Watch Out For A few patterns I see come up again and again with couples and money: - **Assuming silence means agreement.** Not discussing an expectation isn’t the same as both partners sharing it — it usually just means the disagreement hasn’t surfaced yet. - **Letting one partner carry 100% of the financial admin.** Even if it’s genuinely easier for one person to handle day-to-day bills, the other partner should still understand the full picture in case of emergency. - **Zero discretionary spending money for either partner.** This is one of the fastest ways to turn small purchases into recurring fights. - **Treating a recurring argument as a math problem.** If the same disagreement keeps coming back regardless of the numbers, it’s very likely not actually about the numbers. - **Going to professional meetings solo.** One partner attending every advisor or tax appointment alone leaves the other under-informed and more anxious about money generally, not less. **Related reading:** - [Budgeting pitfalls and remedies](https://savingtoinvest.com/budgeting-pitfalls-and-remedies/) - [How to find and choose the right financial advisor](https://savingtoinvest.com/how-to-choose-the-right-financial-advisor/) Frequently Asked Questions QWhy do couples argue about money so often? AMost money arguments trace back to expectations that were never explicitly discussed - each partner assumes the other shares their views on spending, saving, or financial goals. Talking through these expectations directly, rather than assuming agreement, prevents most recurring disagreements. QShould couples have joint or separate bank accounts? AThere's no universally correct structure. A common approach is a joint savings account for long-term goals, a joint checking account for household bills, and separate accounts for individual discretionary spending. What matters most is that both partners agree on and understand whatever system you choose. QHow much discretionary spending money should each partner have? AEven a small amount that either partner can spend without explanation reduces conflict significantly. Financial disagreements escalate fastest when neither partner can make a purchase without facing questions about it. QWhat should couples do before meeting with a financial advisor? AAttend the meeting together rather than sending one partner alone. This ensures both people understand the household's finances and can ask their own questions, and it means either partner could manage things independently in an emergency. QAre money arguments really about money? AOften not entirely. Marriage counselors frequently find that financial disagreements are proxies for deeper concerns about trust, security, or differing priorities. Focusing on the underlying feeling rather than the specific dollar amount tends to resolve disagreements faster. QWhat's the biggest financial mistake couples make? AAssuming their partner shares the same views on money without ever discussing it directly. Spender-versus-saver mismatches, undiscussed financial goals, and unclear day-to-day money management responsibilities are the most common sources of recurring conflict. **Categories:** Career and Relationships **Tags:** couples, Finances, money --- ### [Buying a Franchise in 2026? 10 Myths and 5 Risk Factors I Learned the Hard Way](https://savingtoinvest.com/top-ten-myths-about-buying-franchise/) **Published:** July 24, 2020 **Author:** Andy **Content:** ### Key Takeaways - Most franchisees earn $50,000-$100,000 a year and work long hours - six-figure outlier stores are the exception franchisors advertise, not the norm - Franchise failure rates are understated - franchisors typically only count stores that go fully out of business, not the many sold at a steep loss to a new owner before that happens - The franchise contract is one-sided by design - you have limited leverage if the franchisor underperforms, and enforcement runs against you if you push back - Franchises are usually not appreciating assets - you rent your location, your fixed costs are fixed by contract, and the business's value erodes as your lease term runs down - Personal guarantees follow you on SBA loans and commercial leases regardless of forming a corporation - a franchise failure can put your personal assets at risk, not just your investment - Always have a Plan B: emergency cash reserves, an exit strategy with clear criteria, and current professional skills/network you haven't let lapse I owned a second-tier franchise for one year before selling it for a $170,000 loss. That’s an expensive way to learn what franchisors don’t put in the pitch deck, but it means I know exactly what I’m talking about here. Franchises sell an appealing story: brand recognition, a proven system, being your own boss. Beyond a boilerplate legal disclaimer — “the franchisor is in no way guaranteeing the franchisee a profitable enterprise” — franchise companies tell you the good news and let you find the rest out yourself. This is the rest. Covered in this Article: [Toggle](#) - [Myth #1: You’re Buying Into a Brand](#Myth_1_Youre_Buying_Into_a_Brand) - [Myth #2: The Contract Protects You Too](#Myth_2_The_Contract_Protects_You_Too) - [Myth #3: A “Turn-Key Operation” Compensates for Inexperience](#Myth_3_A_%E2%80%9CTurn-Key_Operation%E2%80%9D_Compensates_for_Inexperience) - [Myth #4: Forming a Corporation Protects You](#Myth_4_Forming_a_Corporation_Protects_You) - [Myth #5: The Franchisor Guarantees a Good Location](#Myth_5_The_Franchisor_Guarantees_a_Good_Location) - [Myth #6: You’ll Make a Lot of Money Being Your Own Boss](#Myth_6_Youll_Make_a_Lot_of_Money_Being_Your_Own_Boss) - [Myth #7: Long-Term Leases Protect You From Rent Increases](#Myth_7_Long-Term_Leases_Protect_You_From_Rent_Increases) - [Myth #8: This Franchise Only Has a 4% Failure Rate](#Myth_8_This_Franchise_Only_Has_a_4_Failure_Rate) - [Myth #9: You Control Your Own Destiny](#Myth_9_You_Control_Your_Own_Destiny) - [Myth #10: You’re Building Equity in an Appreciating Asset](#Myth_10_Youre_Building_Equity_in_an_Appreciating_Asset) - [Five Risk Factors to Weigh Before You Sign](#Five_Risk_Factors_to_Weigh_Before_You_Sign) - [Build a Real Plan B](#Build_a_Real_Plan_B) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Is a Franchise Right for You?](#Is_a_Franchise_Right_for_You) ## Myth #1: You’re Buying Into a Brand The pitch is that brand recognition means minimal advertising — build it and they will come. In reality, unless you land a fantastic location, you’re competing against every other franchisee and independent shop nearby, and customers are far less brand-loyal than the sales pitch assumes. ## Myth #2: The Contract Protects You Too The franchise agreement is extremely one-sided. If something goes wrong on your end, it’s entirely your problem to fix. If something goes wrong on their end, they’ll take their time. They want you to succeed — more royalties for them — but you have little leverage if things start going badly. Push back too hard and their lawyers will enforce the contract to the letter, and you likely can’t afford the legal fight. ## Myth #3: A “Turn-Key Operation” Compensates for Inexperience Franchisors document policies and procedures to a shocking level of detail, which sounds like a safety net — until money stops rolling in and you realize how little room you have to maneuver. Your fixed costs really are fixed. Most franchises require you to buy products from the franchisor or an approved vendor, so you can’t shop around for better pricing even when margins get tight. Staffing minimums work the same way: turn-key is great when business is good, and rigid exactly when you need flexibility most. ## Myth #4: Forming a Corporation Protects You Incorporating is generally smart — it can shield you from some creditors and offer better tax treatment. But it doesn’t touch the specific creditors that matter most in a franchise failure. SBA-backed loans require a personal guarantee. So do most commercial leases on desirable locations, typically for a minimum of five years. When I sold my failing franchise, the landlord required me to personally guarantee the new owner’s rent for a year *and* pay both sides’ attorney fees to transfer the lease — about $7,000, on top of the loss I’d already taken. ## Myth #5: The Franchisor Guarantees a Good Location Franchisors run traffic and volume analysis before you’re allowed to negotiate a lease. It looks rigorous, but it’s still just statistics that don’t guarantee profitable volume. A great location is probably the single most important decision you’ll make, and there are only so many great ones — competition for them is fierce across every type of business, not just franchises. ## Myth #6: You’ll Make a Lot of Money Being Your Own Boss Most franchisees earn $50,000 to $100,000 a year and work long hours. A handful of locations hit six figures; that’s the exception franchisors advertise, not the typical outcome. If a franchisee is clearing $200K at one location, the franchisor will often open another nearby to capture that volume rather than let one owner get too powerful. Real money in franchising generally requires picking a strong brand, getting in early, and owning four or more stores in good locations — a very different proposition than a single first franchise. ## Myth #7: Long-Term Leases Protect You From Rent Increases In theory, a long lease with modest built-in annual increases (often around 3%) keeps a major fixed cost predictable. In practice, since most leases require a personal guarantee, they protect the landlord more than you. If things go badly, your only way out is selling the store *and* getting the landlord to release your personal guarantee — which isn’t in the landlord’s interest. They can pursue your other assets, including your home, to cover the remaining lease term. ## Myth #8: This Franchise Only Has a 4% Failure Rate Advertised failure rates are almost always understated, because most franchisors only count stores that go fully out of business — not the many sold at a steep loss to a new owner before that happens. My own store was sold twice before the final owner went bankrupt. On paper, it looked “successful” for years because it never technically closed; in reality it was failing from early on. Distressed stores handed off for the price of taking over the lease rarely show up in failure statistics at all. ## Myth #9: You Control Your Own Destiny You’re your own boss in name — full responsibility, full accountability — but the franchisor retains significant control over how you operate and spend. New product line from corporate? You’re carrying it. Mandated remodel? You’re paying for some or all of it, subsidy or not. Ironically, plenty of corporate employees have more day-to-day freedom than franchise owners. If you dislike how a company treats you, you can leave. If you dislike how your franchisor treats you, you’re contractually stuck unless you’re willing to pay lawyers. ## Myth #10: You’re Building Equity in an Appreciating Asset This was my most expensive assumption — that the business itself would grow in value over time. Three things work against that: You typically rent your location, so your build-out investment depreciates while the landlord’s real estate appreciates. Franchises also depreciate like a used car the moment you buy one — franchisors keep authorizing new units in any market that can support them, so a buyer can usually get a new location instead of your “used” one unless you discount heavily. And time itself works against you: an aging location needs more maintenance, and your lease’s remaining term directly caps how much value the business can realistically hold. ## Five Risk Factors to Weigh Before You Sign Beyond the myths above, a few practical risk factors are worth treating as a checklist rather than an afterthought: 1. **Read the actual contract, with a lawyer.** It’s long, dense, and written entirely in the franchisor’s favor. Paying for real legal review before signing is worth every dollar. 2. **Don’t treat the operations manual as a guaranteed recipe.** Detailed procedures constrain your flexibility as much as they support you — especially on costs, once you actually need to cut them. 3. **Set income expectations honestly.** Historical figures for many franchise systems run closer to $30,000–$70,000 for a typical single location, not the six-figure outlier stores used in marketing. 4. **Weigh the location like it’s the whole decision — because it largely is.** Franchisor traffic studies are informative but not a guarantee; do your own diligence on the specific site. 5. **Assume some businesses fail, and plan for it.** Understated failure statistics don’t mean franchises are safer than they look — they mean the real failure rate is higher than advertised. ## Build a Real Plan B Franchises can and do fail despite genuine effort. A Plan B isn’t pessimism, it’s basic risk management: - **Keep an emergency cash reserve** separate from the business, sized for several months of personal expenses - **Define exit criteria in advance** — specific numbers or timelines that trigger a decision to sell or close, decided before you’re emotionally invested in “just one more quarter” - **Keep your professional skills and network current** rather than letting them lapse — if you need to return to employment, you don’t want to be starting from zero - **Talk to existing franchisees before you buy**, ideally without the franchisor present, and ask directly about the challenges and the level of support they actually get versus what was promised *[Subscribe here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) for more on small business ownership, career transitions, and the financial tradeoffs behind them.* ## Common Issues to Watch Out For Questions I still get from readers considering this path: - **Underestimating total startup capital.** The franchise fee is just one line item — build-out, initial inventory, working capital, and the personal guarantee exposure all add up fast. - **Not budgeting for the SBA personal guarantee.** Many buyers focus on the loan approval and forget what a guarantee actually means if the business fails. - **Assuming a strong national brand insulates a weak local location.** It doesn’t — location-level economics still drive the outcome. - **Skipping the existing-franchisee conversations.** The Franchise Disclosure Document (FDD) legally requires franchisors to list current and former franchisee contacts — use that list before signing, not after. - **Treating the failure rate on a disclosure document as the real risk.** As covered above, that number is almost always lower than the true rate of distressed, discounted, or handed-off locations. ## Is a Franchise Right for You? Buying a franchise is a legitimate path into business ownership, and for the right person, in the right system, in the right location, it can work. But go in with your eyes open. Don’t let the marketing, the traffic studies, or the advertised failure rate do your due diligence for you — that’s exactly what happened to me. If you’re weighing a franchise against a straight career change instead, our [best job prospects guide](https://savingtoinvest.com/best-job-prospects-and-employment/) covers where the BLS sees durable employment growth if self-employment isn’t the right move right now. And if you do move forward, our [tax and financial planning playbook](https://savingtoinvest.com/tax-and-financial-planning-playbook/) covers the broader deduction and retirement-savings side of running your own business. **Related reading:** - [Best job prospects for 2026 and beyond](https://savingtoinvest.com/best-job-prospects-and-employment/) - [The tax and financial planning playbook for 2026–2027](https://savingtoinvest.com/tax-and-financial-planning-playbook/) Frequently Asked Questions QHow much money do franchise owners actually make? AMost franchisees earn between $50,000 and $100,000 a year and work long hours. A small number of locations produce six-figure incomes for the owner, but that's the exception franchise marketing highlights, not the typical outcome for a single location. QWhy do franchise failure rate statistics look so low? AMost franchisors only count stores that go completely out of business as failures. Stores sold at a steep loss to a new owner, or handed off for the price of taking over the lease, typically aren't counted - even though the original owner lost most or all of their investment. QDoes forming a corporation protect me if my franchise fails? AOnly partially. Incorporating can shield you from some creditors, but SBA-backed loans and most commercial leases on desirable locations require a personal guarantee regardless of your corporate structure, putting personal assets at risk if the business fails. QIs a franchise a good way to build long-term net worth? AOften not in the way buyers expect. Most franchisees rent their location, so their build-out investment depreciates while the landlord's real estate appreciates, and the business's resale value is capped by the remaining lease term and the availability of newer units nearby. QWhat should I do before signing a franchise agreement? AHave a lawyer review the actual contract, set honest income expectations based on typical (not top-performing) locations, do independent diligence on the specific site location, and talk directly to current and former franchisees using the contact list required in the Franchise Disclosure Document. QWhat's a reasonable Plan B if I buy a franchise? AKeep a separate emergency cash reserve, define specific exit criteria before you're emotionally invested in the business, and maintain your professional skills and network in case you need to return to employment. **Categories:** Career and Relationships **Tags:** franchise --- ### [Best Small Business Credit Card, Savings and Checking Accounts in 2026](https://savingtoinvest.com/best-business-high-interest-savings-account-ing-direct-online-business-savings-account-with-a-top-rate/) **Published:** June 10, 2010 **Author:** Andy **Content:** ### Key Takeaways - A good business savings account should charge no account-keeping fees, be FDIC-insured up to $250,000, and pay more than the industry average APY - Business credit cards are worth having mainly for expense separation and cash-back or rewards on categories like office supplies, software, and travel - not as a financing tool given today's 21%+ average APRs - Sign-up bonuses on business savings and checking accounts are most common around quarterly tax time and year-end - ask directly even if nothing is currently advertised - Keep business and personal finances separate from day one; it simplifies both bookkeeping and any future IRS scrutiny of business expenses After about a year of running my business, I’d built up a decent cushion of savings sitting in a checking account earning close to nothing. The account had features I liked, but it wasn’t putting [compounding](https://savingtoinvest.com/power-of-compounding-1-million-now-or/) to work for me — so after a promotional offer (a bonus rate plus a sign-up credit), I moved the surplus into a dedicated business savings account. For small business owners, these accounts give you a real savings option without the costs and unnecessary frills of full-service traditional banking. Here’s what to weigh across a business credit card, savings account, and checking account — since most owners end up needing all three, each doing a different job. Covered in this Article: [Toggle](#) - [Choosing a Business Savings Account](#Choosing_a_Business_Savings_Account) - [Choosing a Business Credit Card](#Choosing_a_Business_Credit_Card) - [Choosing a Business Checking Account](#Choosing_a_Business_Checking_Account) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## Choosing a Business Savings Account **Interest rate or APY offered.** Check the current industry average with a quick search, and make sure your account beats it — looking at the standard APY, not just a limited-time teaser rate. New online-only providers have historically offered a meaningfully higher APY than established banks because they’re building market share, but those rates rarely last, and closing an account to chase the next one is a hassle. **No account-keeping fees.** This should always be the case. If a savings account charges maintenance or deposit/withdrawal fees, move on — reputable providers don’t charge for either. Make sure you can also get free, separate login access for other people in your business, since a unique ID per user adds security and accountability. **Ease of use.** Most providers let you demo their online banking interface before signing up. Look for something simple, and confirm that moving funds to and from your existing accounts is straightforward — including letting vendors and customers deposit payments directly so funds start earning interest right away. **Promotions and sign-up bonuses.** Banks compete hard for new business customers, especially around quarterly tax time and year-end. If nothing’s advertised, call and ask what they can offer — especially if you can point to a competitor’s deal. Don’t let a bonus alone drive the decision, though; weigh it against the ongoing rate and fees. **FDIC insurance.** Confirm any business savings account is FDIC-insured, just like a personal account — worth understanding [why that coverage exists](https://savingtoinvest.com/fdic-going-broke-and-why-bank-fees-will/) in the first place. Deposits are covered up to $250,000 per corporation, partnership, or unincorporated association — verify status directly at FDIC.gov if a provider is offering rates that look too good to be true. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates on business banking options.* ## Choosing a Business Credit Card A business credit card’s main value in 2026 isn’t financing — with average APRs above 21%, carrying a balance on any credit card is expensive. Its real value is separating business and personal spending and picking up rewards on money you were going to spend anyway. Look for a card with no or low annual fee relative to the rewards it earns, category bonuses that match your actual spending (office supplies, software subscriptions, travel, advertising), and expense-management tools — most major issuers now offer free employee cards with individual spending limits and exportable statements that plug straight into accounting software. Pay the balance in full every month. A business card used purely for expense tracking and rewards, paid off monthly, is a genuinely useful tool; the same card carrying a balance at today’s rates works against you fast. ## Choosing a Business Checking Account Your current bank likely already offers a business checking account, so it’s a natural starting comparison point — but check the rates, minimum balance requirements, and fee schedule rather than assuming your existing relationship is the best deal. The online providers behind the higher-APY savings accounts above often pair with a fee-free checking option, given their lower cost structure compared to a traditional branch bank. ## Common Issues to Watch Out For **Mixing personal and business spending on one account or card.** This complicates bookkeeping and makes it harder to substantiate business expense deductions if the IRS ever asks. **Chasing a teaser APY without checking the standard rate.** Promotional rates often apply only to a limited balance or time window — know what you’ll actually earn once it expires. **Assuming a business credit card is a financing tool.** At today’s rates, carrying a balance on a business card is one of the most expensive ways to fund your business — a business line of credit or SBA-backed loan is almost always cheaper if you need financing. **Not asking for documentation requirements upfront.** A bank shouldn’t need extensive financial history just to open a deposit account — that level of documentation is more appropriate for a loan application. Frequently Asked Questions QWhat should I look for in a business savings account? ANo account-keeping fees, FDIC insurance up to $250,000, an APY above the current industry average, and easy transfers between your checking and savings accounts. QIs a business credit card worth it if I pay it off every month? AYes - it separates business and personal spending, simplifies bookkeeping, and earns rewards on money you're already spending, without exposing you to today's 21%+ average APRs. QShould I keep my business banking at the same bank as my personal accounts? ANot necessarily. Your current bank is a good comparison point, but online-only providers often beat traditional banks on both savings rates and fees for business accounts. QHow much FDIC coverage does a business account get? AUp to $250,000 per corporation, partnership, or unincorporated association, the same structure as personal FDIC coverage. QWhen are business banking sign-up bonuses most common? AAround quarterly tax time and year-end, when banks are actively competing for new business customers - it's worth asking even if nothing is currently advertised. **Categories:** Saving and Investing ideas, Small Business **Tags:** investing, saving, Small Business --- ### [How to Avoid Hefty Credit Card Interest and Fees in 2026 — Your Rights and Real Options](https://savingtoinvest.com/how-to-avoid-hefty-credit-card-interest-and-fees-via-good-spending-habits-and-knowing-your-rights/) **Published:** June 29, 2011 **Author:** Andy **Content:** ### Key Takeaways - Average credit card APR sits above 21% overall and 23%+ on new accounts in 2026 - carrying any balance at that rate is expensive by design - A federal court vacated the CFPB's $8 late-fee cap in April 2025, so typical late fees have returned to the pre-rule range, commonly $30-$41 depending on the issuer and your payment history - The CARD Act's core protections are still law: 45 days' notice before a rate hike, no retroactive rate increases on existing balances if you're current, and no rate hikes in your card's first 12 months - 0% intro APR offers are still widely available in 2026 for purchases and balance transfers, typically 12-21 months - but the rate that kicks in afterward is often 20%+ - Checking your own account or asking for a lower rate doesn't hurt your credit; only formal applications for new credit trigger a hard inquiry The average credit card APR is running above 21% in 2026 — over 23% on new accounts — and late fees are back up near their old highs after a court struck down the CFPB’s $8 cap in 2025. Both of those facts change how much a slip-up actually costs you this year. Credit cards are still a convenient way to pay, and the CARD Act still requires real transparency from issuers. But knowing where the protections stop is what actually keeps the interest and fees from piling up. Covered in this Article: [Toggle](#) - [Watching How Much You Spend and How Soon You Repay](#Watching_How_Much_You_Spend_and_How_Soon_You_Repay) - [Where Late Fees Stand in 2026](#Where_Late_Fees_Stand_in_2026) - [Your Rights Under the CARD Act](#Your_Rights_Under_the_CARD_Act) - [Using Your Credit Card to Obtain Cash](#Using_Your_Credit_Card_to_Obtain_Cash) - [If Your Card Is Lost or Stolen](#If_Your_Card_Is_Lost_or_Stolen) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## Watching How Much You Spend and How Soon You Repay The best way to avoid interest and fees is still the simplest: pay your balance in full every month. That’s harder in a year where prices and minimum payments have both climbed, but it remains the only guaranteed way to pay $0 in interest. If paying in full isn’t realistic right now, a 0% intro APR card is the next-best option. Many issuers still offer 12- to 21-month 0% windows on purchases and/or balance transfers, which effectively gives you an interest-free loan for that stretch. Read the terms before you sign up. Know exactly when the 0% period ends and what the ongoing rate becomes — it’s commonly 20% or higher once the intro period expires, and any balance you haven’t paid off starts accruing at that full rate. If you can’t get a 0% card, call your current issuer and ask for a lower rate. Issuers would often rather keep you as a customer at a reduced rate than lose you to a balance transfer, and asking costs you nothing. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get updates as CARD Act enforcement and fee rules change.* ## Where Late Fees Stand in 2026 This is the part that’s genuinely changed since this post was first written. In 2024, the CFPB finalized a rule capping most credit card late fees at $8, down from a typical $30-$41. Card issuers sued, and in April 2025 a federal court in Texas vacated the rule — the CFPB agreed the rule had overstepped its authority, and it’s no longer in effect. That means late fees are back to the pre-2024 range for most issuers: commonly $30 for a first late payment and up to $41 for a repeat late payment within six billing cycles, though exact amounts vary by card agreement. The CFPB has since opened a new inquiry into late fees, so this is a rule worth watching rather than treating as settled — I’ll update this section if anything changes. Practically, this means the cost of a missed due date is real again. Set up autopay for at least the minimum payment as a backstop, even if you plan to pay more manually each month. ## Your Rights Under the CARD Act The Credit CARD Act of 2009 is still the law that governs most of what a card issuer can and can’t do to you. The core consumer protections remain in force in 2026: - **45 days’ notice** before an issuer can raise your interest rate or change other significant terms like annual or late fees. - **The right to cancel** the card before a fee increase takes effect — though the issuer can close your account and require faster repayment if you do, subject to certain limits. - **No rate hikes in your first 12 months**, unless your rate was disclosed as introductory or indexed to a benchmark from the start. - **No retroactive rate increases** on your existing balance if you’re paying on time, even after that first year. - **Opt-in required for over-limit transactions.** Unless you explicitly tell your issuer to allow charges that exceed your limit, they can’t process them — and can’t charge you an over-limit fee for declining them. - **A cosigner requirement for anyone under 21** applying for a card or a credit limit increase, unless they can show independent proof of income. ## Using Your Credit Card to Obtain Cash Credit cards let you withdraw cash from an ATM, similar to a [debit card](https://savingtoinvest.com/debit-cards-linked-to-your-401k-danger/) — but it’s one of the most expensive things you can do with a credit card. Interest on a cash advance typically starts accruing immediately, with no grace period, and the rate is usually higher than your regular purchase APR. On top of that, you’ll pay a separate cash-advance fee, often 3-5% of the amount withdrawn. Use this only in a genuine emergency. ## If Your Card Is Lost or Stolen Report a lost or stolen card immediately. Federal law limits your liability for fraudulent charges, but how much you owe depends on how fast you report it — report before any fraudulent charges post and you’ll typically owe nothing at all. ## Common Issues to Watch Out For **Assuming the $8 late fee cap is still in effect.** It isn’t — a court vacated it in 2025, and issuers have largely returned to $30-$41 late fees. **Missing the ongoing rate on a 0% intro card.** The promotional period ending is when most people get burned; know the exact date and the rate that follows. **Thinking checking your own score or asking for a rate reduction hurts your credit.** It doesn’t — only a formal application for new credit generates a hard inquiry. **Not knowing your card’s cash-advance terms.** No grace period plus a separate fee plus a higher rate makes cash advances one of the costliest moves you can make on a card. Frequently Asked Questions QWhat's the average credit card interest rate in 2026? AOver 21% across all accounts and above 23% on new card offers, according to Federal Reserve data - near multi-decade highs. QIs the CFPB's $8 late fee cap still in effect? ANo. A federal court vacated the rule in April 2025, and typical late fees have returned to the $30-$41 range most issuers used before the rule. QWhat CARD Act protections still apply in 2026? AThe core rules are unchanged: 45 days' notice before a rate or fee increase, no rate hikes in your first 12 months, no retroactive rate hikes on existing balances if you're current, and opt-in consent required for over-limit transactions. QDoes asking my card issuer for a lower rate hurt my credit? ANo. That's a soft conversation with your existing issuer, not a new credit application, so it doesn't trigger a hard inquiry. QAre cash advances always a bad idea? ANearly always - they accrue interest immediately with no grace period, usually at a higher rate than purchases, plus a separate cash-advance fee of 3-5%. QHow long do 0% intro APR offers typically last in 2026? ACommonly 12 to 21 months on purchases and/or balance transfers, after which the rate jumps to the card's standard APR, often 20% or higher. **Categories:** Saving and Investing ideas **Tags:** credit cards, debt, fees, saving, spending --- ### [Good Debt vs. Bad Debt in 2026 — Taking Charge of Your Finances](https://savingtoinvest.com/good-debt-vs-bad-debt-taking-charge-of/) **Published:** April 10, 2010 **Author:** Andy **Content:** ### Key Takeaways - Good debt is typically used to buy an appreciating or income-producing asset and may carry tax-deductible interest; bad debt finances depreciating purchases and is paid with after-tax dollars - The average credit card APR is over 21% in 2026 (23%+ on new accounts) - carrying a balance at that rate makes almost any purchase a bad-debt decision - Even 'good debt' like a mortgage has a bad-debt component: the portion paid from after-tax income - Pay down your highest-interest debt first regardless of the good/bad label - the math matters more than the category - Keep leverage on good debt at a level you could still handle if rates or your income moved against you The average credit card now carries north of 21% APR — higher on new accounts, per the Federal Reserve — while a 30-year mortgage runs closer to 6%. That gap alone tells you most of what you need to know about labeling debt “good” or “bad,” but it’s not quite that simple, since even a mortgage on an appreciating home can behave like bad debt depending on how it’s structured. It’s worth understanding the real differences so you know how to manage each type when they show up in your life — and they will. Covered in this Article: [Toggle](#) - [What Makes Debt Good or Bad](#What_Makes_Debt_Good_or_Bad) - [How to Balance Good and Bad Debt](#How_to_Balance_Good_and_Bad_Debt) - [A Realistic Example](#A_Realistic_Example) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## What Makes Debt Good or Bad There are endless opportunities to [get into debt](https://savingtoinvest.com/overcoming-get-it-now-pay-for-it-later/) every day — a purchase at the mall, a house, an investment tip you want to chase. Before taking on any of it, it helps to know what you’re actually signing up for. ### Good Debt Good debt is traditionally debt on an asset that’s expected to increase in value over time and benefit from compounding. That’s a simplified view, though — even a mortgage on a home that’s appreciating can behave like bad debt, because you’re paying it down with after-tax dollars. Good debt is more often debt whose interest is tax-deductible — money borrowed to buy an investment property or shares, where the interest can generally be [deducted from your taxable income](https://savingtoinvest.com/how-to-reduce-your-tax-bill-by-lowering/), sometimes dropping you into a lower bracket. Gains from good debt can also be taxed. [Capital gains](https://savingtoinvest.com/capital-gains-tax-short-and-long-term-rates-plus-other-factors-to-consider/) on an investment property or margin-financed shares are taxable, but since the borrowed money was tax-deductible going in, the math tends to even out in your favor over time. ### Bad Debt Bad debt won’t increase in value. Anything charged to a [credit card](https://savingtoinvest.com/skipping-payments-on-your-mortgage-auto-loan-and-credit-cards-due-to-coronavirus-lay-off/) that’s a consumable — clothes, electronics, a vacation — adds to bad debt, since none of it appreciates. Car loans fall in the same bucket. A new car is famous for losing a large chunk of its value the moment it leaves the lot, and there’s little chance you’ll sell it for more than you paid. Bad debt is paid from after-tax income. That includes [interest payments](https://savingtoinvest.com/millions-set-to-receive-irs-tax-refund-interest-payments/) not just on credit cards and store cards, but on your home loan too — because those payments come from money you’ve already paid tax on, they’re more expensive in real terms than they look. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates as rates and tax rules change.* ## How to Balance Good and Bad Debt There are degrees of good and bad, and you have to weigh the cost of a bad debt against your needs while keeping the leverage on your good debt at a level you’re comfortable carrying through a rate increase or income disruption. **Don’t just avoid bad debt and stockpile good debt.** A home or car loan counts as bad debt, but both are necessities for most people. If you can manage the payments and have a plan to pay them down, you can carry that debt responsibly while still building equity in a home that continues to gain value. **Don’t save in lieu of debt.** For most people, saving up the full cash price of a home would take decades. Saving makes sense, but it rarely gives you the leverage a loan does — a mortgage lets you live in an appreciating asset while you build equity, rather than renting for 20 years while you save. **Make your money work for you.** Good debt, paid with pre-tax-advantaged dollars, lets your after-tax money work harder because there’s more of it left to invest. **Leverage your good debt, within reason.** If you’ve borrowed 95% of an investment property’s value, you’re highly leveraged and more exposed if rates rise. Being appropriately leveraged means more of your capital is working, but it also means more of your payment is going toward securing the tax benefits. **Pay off bad debt before good.** Direct extra payments toward [reducing bad debt](https://savingtoinvest.com/10-ways-to-get-out-of-debt-starting-now/) — credit cards and personal loans first — and pay only the minimum on good debt like a mortgage. **Pay off your highest interest rate loans first**, regardless of the good/bad label. Know your rate on every debt you carry, and knock out the highest-rate balances first. ## A Realistic Example Take a reader I’ll call Priya. She’s carrying a $6,000 balance on a card at 24% APR (new-purchase furniture and a vacation — both bad debt) alongside a $320,000 mortgage at 6.1% on a home that’s appreciated about 4% a year since she bought it. The math isn’t close: that credit card balance costs her roughly $1,440 a year in interest alone if she only pays the minimum, while her mortgage interest is partially offset by home-value appreciation and, for many filers, a mortgage interest deduction. Priya’s most rational move is throwing every spare dollar at the 24% card before making a single extra payment toward the 6.1% mortgage — the good-debt label on the mortgage doesn’t change that math. ## Common Issues to Watch Out For **Treating all debt the same because it’s “just debt.”** A 24% credit card balance and a 6% mortgage are not remotely comparable — the interest rate, not the good/bad label, should drive your payoff order. **Assuming a mortgage is purely good debt.** The after-tax-dollar portion of any home loan payment functions like bad debt even while the home itself appreciates. **Over-leveraging on “good debt” investments.** Being highly leveraged on an investment property or margin account maximizes tax benefits but also maximizes your exposure if rates rise or the asset’s value drops. **Ignoring the deduction rules.** Not all “good debt” interest is automatically deductible — mortgage interest deduction limits and investment-interest rules changed under recent tax law, so check current [IRS tax bracket](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/) and deduction rules before assuming a write-off applies to your situation. Frequently Asked Questions QWhat's the simplest way to tell good debt from bad debt? AGood debt typically finances an appreciating or income-producing asset and may carry deductible interest; bad debt finances a depreciating purchase and offers no tax benefit. QIs a mortgage good debt or bad debt? AMostly good, since the home usually appreciates and the interest may be deductible, but the portion paid from after-tax income behaves like bad debt. QShould I pay off my mortgage before my credit cards? AAlmost never - credit card APRs above 20% cost far more than a mortgage in the 6% range, so bad debt at high interest should be paid down first. QIs a car loan ever good debt? ARarely. Cars depreciate quickly, so a car loan is generally bad debt even though it's often a necessary one. QDoes having good debt hurt my credit score? ANot inherently - payment history and utilization matter more than whether the underlying debt is 'good' or 'bad.' On-time payments on either type help your score. **Categories:** Personal Finance and Money **Tags:** borrowing, credit, debt, finance, interest rate, tax --- ### [Credit Card Security Myths and Truths in 2026 — How to Actually Protect Yourself](https://savingtoinvest.com/5-credit-card-security-myths-and-truths-how-to-protect-yourself/) **Published:** June 7, 2010 **Author:** Andy **Content:** ### Key Takeaways - EMV chip cards made in-person counterfeit fraud much harder, but they do nothing to stop card-not-present fraud - the kind that happens online or over the phone - Virtual card numbers (offered by most major issuers now) let you shop online without ever exposing your real card number to a merchant's database - Two-factor authentication on your card issuer's app and email is one of the single most effective free security upgrades available - Fraudsters still favor small, repeated charges specifically because they're less likely to trigger an automatic fraud alert - check statements line by line, not just the total - Federal law caps your liability for fraudulent charges at $50, and most issuers offer $0 liability - but only if you report the loss promptly Credit card fraud keeps rising even as the tools to fight it have improved. EMV chips, virtual card numbers, and two-factor authentication have closed off some of the easiest fraud tactics from a decade ago — but they haven’t closed off all of them, and a lot of the old myths about card security are still floating around. Here’s what’s actually true in 2026, and what still puts you at risk. Covered in this Article: [Toggle](#) - [Myth 1: Online Shopping Is 100% Safe](#Myth_1_Online_Shopping_Is_100_Safe) - [Myth 2: Nobody Can Use My Card Without the PIN](#Myth_2_Nobody_Can_Use_My_Card_Without_the_PIN) - [Myth 3: The Card Company Will Automatically Spot the Fraud](#Myth_3_The_Card_Company_Will_Automatically_Spot_the_Fraud) - [Myth 4: Fraud Won’t Affect Me](#Myth_4_Fraud_Wont_Affect_Me) - [Myth 5: Recycling My Card Statements Is Safe](#Myth_5_Recycling_My_Card_Statements_Is_Safe) - [Myth 6: A Strong Password Is Enough to Protect My Account](#Myth_6_A_Strong_Password_Is_Enough_to_Protect_My_Account) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## Myth 1: Online Shopping Is 100% Safe Online retailers use strong security practices, but shopping sites still get breached. Keep your devices’ software current and use a reputable browser, and treat any site asking for card details over an unencrypted connection as a red flag. **What’s changed:** virtual card numbers are the real upgrade here. Most major issuers — Capital One, Chase, Citi, and others — now let you generate a single-use or merchant-locked virtual card number for online purchases. If that number leaks in a breach, it’s useless anywhere else and can be shut off without affecting your actual card. ## Myth 2: Nobody Can Use My Card Without the PIN Fraudsters can use your card without a PIN — online, over the phone, or in person by forging your signature. Many retailers still don’t rigorously check that a signature matches the card, something fraudsters are well aware of. **What’s changed:** EMV chip technology (the small metallic square on your card) made counterfeit in-person fraud significantly harder than the old magnetic-stripe-only cards, since chip transactions generate a unique code for each purchase. That’s a real win — but it only protects in-person transactions. Card-not-present fraud (online and phone purchases) has actually grown as counterfeit fraud has shrunk, since chips don’t do anything to stop it. ## Myth 3: The Card Company Will Automatically Spot the Fraud Issuers run advanced fraud detection, but fraud tactics adapt just as fast. A common tactic is making several small transactions specifically because they’re less likely to trigger an automatic fraud alert than one large charge. Check your statement line by line — not just the total — and set up transaction alerts through your issuer’s app so you see every charge in real time. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates on card security.* ## Myth 4: Fraud Won’t Affect Me Fraud tactics get more sophisticated every year, and anyone with a card is a potential target. Turn on real-time transaction alerts from your issuer, and check your account at least weekly even without an alert. **What’s changed:** two-factor authentication (2FA) on your card issuer’s app, your email, and any account tied to your finances is one of the most effective free upgrades you can make. If a fraudster gets your password through a data breach, 2FA is frequently the only thing standing between them and your account. ## Myth 5: Recycling My Card Statements Is Safe Throwing away paper statements without shredding them is still a risk — “dumpster diving” for account information is a real, low-tech fraud method that predates digital fraud entirely. Shred old statements and cut up expired or replaced cards before disposing of them. ## Myth 6: A Strong Password Is Enough to Protect My Account A strong, unique password is necessary but not sufficient anymore. Password-only protection fails the moment that password leaks in a breach on some unrelated site — and password reuse across sites is extremely common. Pair a password manager with 2FA on every financial account, not just your card issuer’s app. ## Common Issues to Watch Out For **Assuming a chip card protects online purchases.** EMV chips only secure in-person transactions; card-not-present fraud requires separate protections like virtual card numbers and 2FA. **Ignoring small, recurring charges.** Fraudsters specifically use small amounts to avoid tripping fraud alerts — a $4.99 charge you don’t recognize deserves the same scrutiny as a $400 one. **Delaying reporting a lost or stolen card.** Your liability protection is strongest the faster you report — waiting even a day or two can increase what you’re on the hook for. **Reusing passwords across financial and non-financial accounts.** A breach on an unrelated site can expose the same password you use for your bank or card issuer login. Frequently Asked Questions QDo EMV chip cards prevent all credit card fraud? ANo - they significantly reduce in-person counterfeit fraud but do nothing to prevent card-not-present (online or phone) fraud, which has grown as a result. QWhat's a virtual card number and how does it help? AA virtual card number is a substitute number generated by your card issuer for a specific purchase or merchant. If it leaks in a data breach, it's useless anywhere else, protecting your real card number from exposure. QHow much am I liable for if my credit card is used fraudulently? AFederal law caps liability at $50, and most major issuers offer $0 liability on unauthorized charges - but only if you report the fraud promptly. QWhy do fraudsters make small charges instead of one large one? ASmall, repeated charges are less likely to trigger an automatic fraud alert than a single large purchase, so they can go unnoticed longer if you're not checking your statement closely. QIs a strong password enough to protect my card issuer account? ANot by itself. Pair a strong, unique password with two-factor authentication - it protects you even if that password is exposed in an unrelated data breach. QShould I still shred paper statements if I bank mostly online? AYes, if you receive any paper statements or offers - 'dumpster diving' for account details is a low-tech but still-real fraud method. **Categories:** Technology and Retail **Tags:** credit cards, security --- ### [How to Save and Make Money With Credit Cards in 2026](https://savingtoinvest.com/how-to-save-and-make-money-with-credit/) **Published:** October 9, 2009 **Author:** Andy **Content:** ### Key Takeaways - Cash-back cards commonly pay a flat 1.5-2% on everything, or 3-5% in rotating or chosen bonus categories like groceries, gas, and dining - Card issuers can afford these rebates because merchants pay interchange fees on every swipe - you're getting a cut of a fee that's charged either way - Shopping portals run by Chase, Citi, Discover, and Amex add an extra layer of cash back on top of your card's normal rewards rate, simply by starting your online purchase through the portal - None of this works if you carry a balance - at 21%+ APR, interest costs outpace almost any realistic rewards rate within one to two billing cycles - A dedicated business credit card, paid off monthly, is one of the simplest ways to separate expenses and still earn rewards on money you were spending anyway Here’s the rule that makes everything below actually work: pay your card in full every month. At an average APR above 21% in 2026, a single month of carried interest wipes out most of what a cash-back or rewards card can earn you. With that out of the way, here’s how to actually save money using credit cards — and why issuers can afford to pay you back a slice of every purchase. Covered in this Article: [Toggle](#) - [How Credit Cards Provide Cash Rebates](#How_Credit_Cards_Provide_Cash_Rebates) - [Choosing the Right Card for Your Spending](#Choosing_the_Right_Card_for_Your_Spending) - [Saving on Vacations](#Saving_on_Vacations) - [Separating Business Expenses](#Separating_Business_Expenses) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [A Realistic Example](#A_Realistic_Example) ## How Credit Cards Provide Cash Rebates Many credit cards give cash rebates or reward points for using the card on regular purchases. Issuers can do this because merchants pay a fee — the interchange fee — every time a card is swiped, and issuers share a slice of that revenue back with cardholders to keep them using the card. The standard rebate is a flat 1.5-2% on everything. Stronger cards pay more in specific categories — commonly 3-5% on groceries, gas, dining, or streaming — sometimes on categories you choose each quarter, sometimes fixed year-round depending on the card. **How shopping portals work.** Rather than going directly to a retailer’s site, you can log into your card issuer’s shopping portal first and click through from there. Chase, Citi, Discover, and American Express all run some version of this. Because the issuer gets a referral commission from the merchant, they pass part of it back to you as extra cash back — stacked on top of your card’s normal earn rate on the same purchase. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates on the best cash-back strategies.* ## Choosing the Right Card for Your Spending Once you understand how the rebate math works, the next step is matching a card to where you actually spend. Start by listing your expenses by category — groceries, gas, dining, subscriptions — then compare cards that pay the highest rate in the categories where you spend the most, rather than chasing whichever card has the flashiest headline offer. It’s often worth pairing a flat-rate 2% card for everything else with a category card for your top one or two spending areas, rather than relying on a single all-purpose card. ## Saving on Vacations Travel rewards are a separate lane from cash back. If you fly one airline regularly, that airline’s co-branded card can be worth it purely for the miles, checked-bag perks, and boarding priority — though the airline-card landscape has consolidated significantly since this post was first written; check which co-branded cards your preferred airline currently partners with before assuming a specific program still exists. General travel rewards cards suit people who aren’t loyal to one airline. You earn points redeemable for flights, hotels, cruises, gift cards, or merchandise, and for most general travel redemptions you’ll land around a 1-1.5% effective rebate — sometimes higher if you transfer points to an airline or hotel partner at a favorable ratio. ## Separating Business Expenses A dedicated business credit card is worth considering if you run any kind of side business or freelance work — separating personal and business spending makes bookkeeping and tax time meaningfully easier. Many business cards offer category bonuses on things like office supplies, software subscriptions, and advertising, on top of the expense-tracking benefit itself. ## Common Issues to Watch Out For **Carrying a balance to chase rewards.** This is the single biggest way people lose money on cash-back cards — interest at 21%+ overwhelms almost any realistic rewards rate within a month or two. **Assuming an old airline card program still exists.** Airlines have merged and rebranded repeatedly over the past 15 years; verify a co-branded card is still active before applying based on outdated information. **Skipping the shopping portal step.** It costs nothing extra and takes one click, but it’s easy to forget — bookmark your card issuer’s portal if you shop online regularly. **Opening too many cards to chase bonuses.** Multiple new-account applications in a short window can ding your [FICO score](https://savingtoinvest.com/breaking-down-and-improving-your-fico/) through hard inquiries and a lower average account age. ## A Realistic Example Take a reader I’ll call Sarah, who spends roughly $600 a month on groceries and gas combined and puts everything else on a flat 2% card. Switching her grocery and gas spending to a 4% category card nets her about $144 a year in extra cash back — with zero change in her actual spending, just a different card for two categories. Frequently Asked Questions QHow much can I realistically earn back with credit card rewards? AA flat cash-back card earns 1.5-2% on everything; category cards can pay 3-5% on specific spending like groceries or gas. Total value depends entirely on your spending, and only counts as 'earnings' if you pay the balance off in full. QDo shopping portals actually add extra savings? AYes - issuer shopping portals from Chase, Citi, Discover, and Amex add bonus cash back on top of your card's normal rewards rate, simply for starting your purchase through the portal instead of going directly to the retailer. QIs it worth getting an airline-specific credit card in 2026? AOnly if you're genuinely loyal to one airline and fly it often enough to use the card's perks - check that the specific co-branded program still exists, since airline card partnerships have changed significantly over the past decade. QWhat's the biggest mistake people make with rewards credit cards? ACarrying a balance to keep earning points - at today's 21%+ average APR, the interest cost almost always exceeds the value of the rewards earned. QShould I use a separate credit card for my side business? AYes, if you have any regular business or freelance income - it simplifies bookkeeping, supports your expense records if the IRS ever asks questions, and often earns rewards on categories like office supplies and software. **Categories:** Saving and Investing ideas **Tags:** credit cards --- ### [The Four Deadly Credit Card Mistakes You Can Avoid Now (2026 Update)](https://savingtoinvest.com/the-four-deadly-credit-card-mistakes/) **Published:** May 3, 2010 **Author:** Andy **Content:** ### Key Takeaways - Cash advances start accruing interest immediately with no grace period, plus a separate 3-5% cash-advance fee - it's the single most expensive way to borrow on a credit card - Average credit card APR is over 21% overall and above 23% on new accounts in 2026, so any avoidable mistake compounds fast - Picking the first card you're offered instead of comparing options can cost you $50-$400 a year in avoidable annual fees alone - Spending purely to chase rewards, then carrying a balance, almost always costs more in interest than the rewards are worth - Reading your card's fee schedule once, when you open it, prevents most of these mistakes before they happen The average credit card now carries north of 21% APR — above 23% on new accounts — so the cost of a credit card mistake is higher in 2026 than it’s been in decades. Banks make billions a year in fees and interest, and nearly all of it comes from a handful of avoidable habits. Use your card well and it costs you nothing beyond what you’d have spent anyway. Make one of these four mistakes and you’re handing your card issuer money for no reason. Covered in this Article: [Toggle](#) - [1. Using Your Card for Cash Withdrawals](#1_Using_Your_Card_for_Cash_Withdrawals) - [2. Not Watching for Extra Fees](#2_Not_Watching_for_Extra_Fees) - [3. Not Finding the Best Card for You](#3_Not_Finding_the_Best_Card_for_You) - [4. Spending Just for the Rewards](#4_Spending_Just_for_the_Rewards) - [A Realistic Example](#A_Realistic_Example) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## 1. Using Your Card for Cash Withdrawals A cash advance is the most expensive way to borrow money on a credit card, and that gap has only widened as rates have climbed. Four reasons it costs so much: - If the ATM isn’t owned by your bank, you’ll likely pay an ATM fee on top of everything else. - Your card issuer charges a separate cash-advance fee, commonly 3-5% of the amount withdrawn. - Interest starts accruing the moment you withdraw — there’s no grace period like there is on purchases. - The cash-advance interest rate itself is typically higher than your card’s standard purchase APR. Stack those together and a $500 cash advance can easily cost $40-$60 before you’ve paid a dime of it back. Use a debit card or your bank’s own ATM network for cash needs; save the credit card cash advance for genuine emergencies only. ## 2. Not Watching for Extra Fees Card issuers charge administrative and add-on fees for a range of features they’ll try to sell you, on top of any annual fee you’re already paying once an introductory offer ends. Find out what’s actually included — and what costs extra — before agreeing to any change on your account. Late fees are worth specific attention in 2026. A federal court struck down the CFPB’s $8 late-fee cap in 2025, so most issuers are back to charging $30-$41 for a late payment, depending on your history with that issuer. Autopay for at least the minimum due removes this risk entirely. ## 3. Not Finding the Best Card for You Taking the first card that looks like a good deal is one of the costliest mistakes you can make — it’s the same discipline I write about in [good debt vs. bad debt](https://savingtoinvest.com/good-debt-vs-bad-debt-taking-charge-of/): know what you’re signing up for before you sign. With the number of cards on the market, it’s worth comparing before committing — a no-annual-fee card alone can save $50 to $400 a year over a card that charges one. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get updates as card offers and rates change.* Getting multiple cards suited to different spending — one for travel, one for groceries or gas — often beats sticking with a single all-purpose card, since category bonuses (commonly 3-5% versus a flat 1-2%) add up on the categories you actually spend in. It’s often more convenient to take whatever card your own bank offers, but that’s rarely the best deal. You may end up with a higher rate or a weaker rewards program simply because you didn’t check what other issuers offer. ## 4. Spending Just for the Rewards Making purchases specifically to rack up points is fine — as long as you can pay off the balance in full every month. Some people get excited about a rewards program and overspend to chase a bonus threshold. If the balance isn’t paid off, the math flips fast: at 21%+ APR, the interest you’ll pay almost always exceeds the value of the points you earned. A card’s rewards program only pays off net-positive if you were never going to carry a balance in the first place — see [how to actually make money with credit cards](https://savingtoinvest.com/how-to-save-and-make-money-with-credit/) for the version of this that works. ## A Realistic Example Take a reader I’ll call Tom. He opened a new travel card mid-year chasing a large sign-up bonus, put $4,000 of expenses on it to hit the spending threshold, and earned a bonus worth roughly $600 in travel credit. But he carried a $2,200 balance into the next billing cycle at 24% APR while waiting for a work reimbursement, which cost him about $44 in interest that month alone — and would have cost him far more had it lingered for several months. The bonus was still a net win here, but only because Tom paid the balance down fast; if he’d carried it for six months instead of one, the interest would have erased most of the reward’s value. ## Common Issues to Watch Out For **Confusing a cash advance with a normal purchase.** They’re charged completely differently — check your card’s terms before assuming an ATM withdrawal or a “cash-equivalent” transaction (like buying gift cards or crypto) is treated as a regular purchase. **Not knowing your card’s exact annual fee and late fee amounts.** These are in your card agreement, not always in the app’s summary screen — pull the actual terms once a year and check. **Chasing a sign-up bonus you can’t realistically pay off.** If hitting a minimum spend requirement means carrying a balance, run the interest math first — it can wipe out the bonus. **Assuming your bank’s card is automatically the best option.** Convenience isn’t the same as the best rate or rewards program; a five-minute comparison can save real money. If you start avoiding these mistakes, you’ll pay less in fees and interest — money you need a lot more than your card issuer does. Frequently Asked Questions QWhat's the most expensive credit card mistake? AUsing your card for a cash advance - it accrues interest immediately with no grace period, plus a separate 3-5% fee, on top of the ATM fee if it's not your bank's machine. QHow much can choosing the wrong card cost me per year? ACommonly $50 to $400 a year in avoidable annual fees alone, before factoring in a weaker rewards program or higher standard APR. QIs it ever worth carrying a balance to earn rewards? AAlmost never - at 2026's average APR above 21%, interest charges typically exceed the value of any rewards earned on the same spending. QWhat's the average credit card late fee in 2026? ACommonly $30 to $41, since a federal court vacated the CFPB's $8 fee cap in 2025 and issuers reverted to their prior fee schedules. QShould I get multiple credit cards instead of one? AOften yes, if you can manage them responsibly - category-specific cards (travel, groceries, gas) frequently earn 3-5% versus a flat 1-2% on an all-purpose card. **Categories:** Personal Finance and Money **Tags:** credit cards, debt, spending --- ### [Using Your Credit or Debit Card to Pay Taxes in 2026 — Costs, Convenience, and Other Factors to Consider](https://savingtoinvest.com/using-your-credit-or-debit-card-to-pay-taxes-costs-convenience-and-other-factors-to-consider/) **Published:** January 11, 2017 **Author:** Andy **Content:** ### Key Takeaways - The IRS now works with two authorized processors - Pay1040 and ACI Payments - after PayUSAtax shut down; consumer credit card fees run 1.75% (Pay1040) to 1.85% (ACI) - Business cards and personal/business Amex cards get hit with a steeper 2.89% fee through Pay1040 - check your card type before you pay - Debit card payments carry a small flat fee (around $2.10-$2.15) instead of a percentage, making debit the cheaper option if you're not chasing rewards - The IRS's own installment-plan interest rate is 7% for Q3 2026 (July-September), up from 6% in Q2 - compare that against your card's APR before assuming a card payment plan beats an IRS plan - You're capped at two credit or debit card payments per tax form, per tax year, so partial/rolling payments aren't really an option through this method If you owe the IRS or your state after filing, paying by card costs you a convenience fee of roughly 1.75% to 2.89%, depending on the processor and card type. That’s the number that should drive this decision, not the rewards points. Cash flow gets tight for a lot of filers right after tax season, so paying by debit or credit card can feel like the easy button. Before doing that, it’s worth knowing exactly what it costs and when it actually makes sense. Covered in this Article: [Toggle](#) - [How to Pay With a Debit or Credit Card](#How_to_Pay_With_a_Debit_or_Credit_Card) - [Credit or Debit Card Convenience Fees in 2026](#Credit_or_Debit_Card_Convenience_Fees_in_2026) - [Other Factors to Consider](#Other_Factors_to_Consider) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## How to Pay With a Debit or Credit Card Paying by card is straightforward, and most [online tax preparation software](https://savingtoinvest.com/the-best-tax-software-and-free-filing-options-as-tax-filing-goes-primarily-online/) — including [TurboTax](https://savingtoinvest.com/turbotax) — lets you do it through an IRS-approved third-party processor. You can e-file or paper-file now and pay by card later, delaying the out-of-pocket hit. If your card earns rewards, you can pick up points, miles, or cash back on the payment — which is the one scenario where the math sometimes works in your favor despite the fee. Paying this way is as secure as any other online card transaction, since the IRS’s authorized processors run on standard commercial card networks. The IRS itself never sees or stores your card number. ## Credit or Debit Card Convenience Fees in 2026 As of 2026, the IRS has two authorized card processors: **Pay1040** and **ACI Payments**. PayUSAtax, a third option that used to round out the list, has shut down. Here’s what each charges for a personal payment: ProcessorConsumer Credit CardBusiness/Commercial or AmexDebit CardPay10401.75%2.89%~$2.15 flatACI Payments1.85%1.85%+~$2.10 flat That 2.89% rate on Pay1040 catches people off guard — it applies to business cards and to personal or business American Express cards, not just commercial accounts, so check which bucket your card falls into before you commit. A 1.75%-1.85% fee on a $5,000 tax bill runs $88-$93. If you don’t pay off the card balance immediately, interest charges stack on top of that fee, so this only pencils out if you’re paying in full or capturing rewards worth more than the fee. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get notified as processor fees or IRS payment rules change.* ## Other Factors to Consider **Know your credit limit before you charge your taxes.** Getting close to your limit can ding your credit utilization and hurt your score, separate from the tax bill itself. **Verify the payment posts as a purchase, not a cash advance.** Cash advances carry higher interest rates and typically a separate cash-advance fee — a card tax payment through an authorized processor should post as a normal purchase, but confirm with your issuer if you’re unsure. **There’s a limit on how many card payments you can make.** Generally, the cap is two credit or debit card payments per tax form (1040 for individuals, the 940 series for businesses) per tax year — so this isn’t a way to make small, rolling partial payments. **The IRS doesn’t charge or receive the convenience fee.** It goes entirely to the processor; the IRS can’t waive or reimburse it. **Compare against an IRS installment plan.** If you can’t pay in full, an IRS installment agreement currently charges 7% interest (Q3 2026, July-September), which resets quarterly based on the federal short-term rate. That’s a fixed, predictable rate — unlike a credit card, where your rate can be double or triple that and will vary with your issuer’s terms. ## Common Issues to Watch Out For **Assuming the convenience fee is small enough to ignore.** On a five-figure tax bill, even a 1.75% fee is a four-figure cost — run the math before defaulting to a card. **Using a business or Amex card without checking the rate.** The jump from 1.75% to 2.89% on Pay1040 is easy to miss since both show up as “credit card” options at checkout. **Not comparing the card’s APR to the IRS’s 7% rate.** If you’re carrying a balance rather than paying it off immediately, an IRS installment plan is very likely cheaper than card interest on top of the convenience fee. **Forgetting the two-payment cap.** If you’re trying to spread a large balance across several card payments over the year, this method won’t let you — you get two shots per form, per year. Frequently Asked Questions QWhat's the convenience fee for paying taxes with a credit card in 2026? A1.75% through Pay1040 or 1.85% through ACI Payments for a personal consumer credit card; business and Amex cards run 2.89% on Pay1040. QIs it cheaper to pay taxes with a debit card? AUsually yes - debit card payments carry a small flat fee (around $2.10-$2.15) rather than a percentage of your tax bill, so debit is cheaper unless you're specifically chasing credit card rewards. QWhat happened to PayUSAtax? APayUSAtax shut down; Pay1040 and ACI Payments are the two IRS-authorized processors remaining as of 2026. QIs paying my taxes with a credit card better than an IRS payment plan? ACompare rates directly - the IRS's own installment-plan interest rate is 7% for Q3 2026, which is well below most credit card APRs (commonly 21%+), so a payment plan is usually cheaper unless you're paying the card off in full immediately. QHow many times can I pay my taxes by card? AThe IRS caps card payments at two per tax form, per tax year, so this method doesn't work for ongoing partial payments. QIs the convenience fee tax-deductible? AThe IRS treats it as a deductible expense in some circumstances for business filers; for most individual filers it isn't separately deductible under current law, so don't count on it offsetting the cost. **Categories:** Taxes and Retirement **Tags:** credit, fees, payment, tax --- ### [3-Fund Portfolio in 2026: Vanguard vs Fidelity vs Schwab — Which Index Funds to Use](https://savingtoinvest.com/simpler-and-smarter-investing-with-a-3-index-fund-portfolio-choosing-between-vanguard-and-fidelity-equity-funds/) **Published:** July 8, 2013 **Author:** Andy **Content:** ### Key Takeaways - The 3-fund portfolio (US total market / international / bonds) gives most investors everything they need: broad diversification, low cost, and minimal maintenance - Fidelity's ZERO funds (FZROX, FZILX) now charge 0.00% - the lowest cost available, but they're only transferable in-kind to another Fidelity account - Vanguard's ETF equivalents (VTI, VXUS, BND) charge 0.03-0.07% and can be held at any brokerage - For retirement accounts where you'll stay at Fidelity, the ZERO funds are hard to beat on cost - For taxable accounts, portable ETFs (VTI, VXUS) may be smarter - selling to transfer out triggers a taxable event - The difference in cost between Fidelity ZERO and Vanguard ETFs on a $100,000 portfolio is about $30-$70/year - meaningful at scale, negligible when starting out After a year of stock-picking and sector ETF trading that took more time than it was worth, I switched to a simple 3-fund index portfolio — and I haven’t looked back. The strategy is straightforward: hold one US total market fund, one international fund, and one bond fund. Rebalance quarterly. Done. What’s changed since I first wrote about this is the fund landscape. When I originally published this post in 2013, Vanguard was the clear winner on cost. That’s no longer true. Fidelity launched zero-expense-ratio index funds in 2018, and the cost comparison across brokerages has shifted meaningfully. Here’s where things stand in 2026. Covered in this Article: [Toggle](#) - [Why the 3-Fund Portfolio Works](#Why_the_3-Fund_Portfolio_Works) - [2026 Fund Comparison: Vanguard vs Fidelity vs Schwab](#2026_Fund_Comparison_Vanguard_vs_Fidelity_vs_Schwab) - [The Big Change: Fidelity’s ZERO Funds](#The_Big_Change_Fidelitys_ZERO_Funds) - [Mutual Funds vs ETFs: The 2026 Answer Is Different](#Mutual_Funds_vs_ETFs_The_2026_Answer_Is_Different) - [Rebalancing: Simpler Than It Sounds](#Rebalancing_Simpler_Than_It_Sounds) - [What I Actually Hold](#What_I_Actually_Hold) - [Looking Ahead: 2027](#Looking_Ahead_2027) ## Why the 3-Fund Portfolio Works The idea behind a 3-fund portfolio is to own the whole market, not try to beat it. Research consistently shows that most actively managed funds underperform their benchmark index over a 10-year period, net of fees. Owning index funds removes the stock-picking risk and eliminates the fee drag that compounds against you over decades. The three building blocks: **1. US Total Stock Market** — covers large, mid, and small-cap US companies (~3,800+ stocks). More diversified than an S&P 500 fund, with historically slightly higher long-term returns due to small/mid-cap exposure. **2. International Stock Index** — developed and emerging market exposure outside the US. Provides geographic diversification that the US fund doesn’t cover. **3. Bond Market Index** — stabilizes the portfolio during equity downturns and reduces overall volatility. The appropriate allocation depends on your time horizon and risk tolerance. A common starting allocation for someone in their 30s–40s: 60% US / 30% international / 10% bonds. More conservative investors or those closer to retirement shift more toward bonds. ## 2026 Fund Comparison: Vanguard vs Fidelity vs Schwab This is where the post needed a full update. The cost picture has changed a lot since 2013. ### US Total Stock Market Funds FundTickerExpense RatioMinimumPortable?Fidelity ZERO Total MarketFZROX0.00%$0Fidelity onlyFidelity Total Market IndexFSKAX0.015%$0YesSchwab Total Stock MarketSWTSX0.03%$0YesVanguard Total Stock Market ETFVTI0.03%$1 (fractional)YesVanguard Total Stock MarketVTSAX0.04%$3,000Yes ### International Stock Funds FundTickerExpense RatioMinimumPortable?Fidelity ZERO InternationalFZILX0.00%$0Fidelity onlyFidelity Total InternationalFTIHX0.06%$0YesVanguard Total International ETFVXUS0.07%$1 (fractional)YesVanguard Total InternationalVTIAX0.12%$3,000Yes ### Bond Market Funds FundTickerExpense RatioMinimumPortable?Fidelity US Bond IndexFXNAX0.025%$0YesVanguard Total Bond Market ETFBND0.03%$1 (fractional)YesVanguard Total Bond MarketVBTLX0.05%$3,000Yes ## The Big Change: Fidelity’s ZERO Funds In 2013 I concluded that Vanguard’s VTSAX won on cost. That’s no longer accurate. Fidelity launched FZROX and FZILX in 2018 with a 0.00% expense ratio — the lowest cost available anywhere. On a $100,000 portfolio, that saves you about $30–40/year versus Vanguard ETFs. Not life-changing at that size — but at $500,000 it’s $150–200/year, and it compounds over time. The catch: **FZROX and FZILX are proprietary to Fidelity.** If you ever move your account to another brokerage, you’d have to sell them first — which in a taxable account triggers capital gains taxes. In a Roth IRA or 401k where you plan to stay at Fidelity long-term, that’s not a concern. In a taxable account, it’s something to think about before committing. My approach: I use the Fidelity ZERO funds inside my IRA at Fidelity. For any taxable account, I’d use VTI and VXUS — they’re portable and still extremely cheap at 0.03–0.07%. Selling FZROX to transfer out triggers a taxable event, so it’s also worth reviewing [capital gains tax rates](https://savingtoinvest.com/capital-gains-tax-short-and-long-term-rates-plus-other-factors-to-consider/) before making any switch in a taxable account. I’ll update this page if expense ratios change. [Subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## Mutual Funds vs ETFs: The 2026 Answer Is Different In 2013, I chose mutual funds over ETFs largely because ETFs were harder to automate — you had to buy whole shares through a brokerage, which made regular monthly contributions awkward. That’s no longer true. Most brokers now offer fractional shares on ETFs, so you can invest $500/month in VTI the same way you’d auto-invest in VTSAX. Commission-free ETF trading is also now the standard at Fidelity, Schwab, and most other major brokerages. The practical difference today is minimal. If you’re using Fidelity and want the ZERO funds, go with mutual funds. If you want portability or plan to hold in a non-Fidelity account, ETFs are slightly more flexible. ## Rebalancing: Simpler Than It Sounds The main maintenance task with a 3-fund portfolio is quarterly rebalancing — checking whether your actual allocation has drifted from your target, and buying/selling to bring it back. With just three funds, this takes maybe 20 minutes. Compare the current balance in each fund against your target percentage. If US stocks have run up and now represent 70% instead of 60%, sell a bit and shift to international or bonds to rebalance. Some brokers (Fidelity, Vanguard, Schwab) have automatic rebalancing features that handle this for you. The other maintenance task is reassessing your stock/bond split as you age. A common rule of thumb is to hold your age in bonds — a 40-year-old holds 40% bonds. That’s conservative by most modern standards, but the principle of gradually shifting toward bonds as retirement approaches is sound. ## What I Actually Hold For the record: I use a variation of this approach, weighted toward US equities given my time horizon. FZROX for the US portion in my IRA, VTI in any taxable accounts, and VXUS for international. I’ve reduced bond exposure compared to a decade ago and will shift back gradually as I get closer to retirement. The specific percentages are less important than the consistency of contributing and not touching it when the market drops. --- ## Looking Ahead: 2027 Expense ratios on broad index funds have been on a long-term downward trend — the competition between Fidelity, Vanguard, and Schwab has been genuinely good for investors. It’s possible Fidelity expands the ZERO fund lineup, or that Vanguard responds with further cuts. I’d expect the core VTSAX/VTI and FZROX landscape to remain stable, but I’ll update these tables if anything changes. --- **Related reading:** - [2026–2027 Roth IRA and Traditional IRA Contribution and Income Limits](https://savingtoinvest.com/traditional-ira-versus-roth-ira-contribution-and-phase-out-income-limits/) - [2026–2027 401(k), 403(b) and TSP Contribution Limits](https://savingtoinvest.com/taking-advantage-of-new-401k/) - [The Power of Compounding: $1 Million Now or a Penny Doubled for 30 Days?](https://savingtoinvest.com/power-of-compounding-1-million-now-or/) - [Capital Gains Tax Rates: Short-Term vs Long-Term](https://savingtoinvest.com/capital-gains-tax-short-and-long-term-rates-plus-other-factors-to-consider/) - [2026–2027 HSA Contribution Limits and Tax Rules](https://savingtoinvest.com/hsa-limits-and-tax-rules-how-to-best-utilize-health-savings-accounts/) Frequently Asked Questions QWhat is the 3-fund portfolio? AThe 3-fund portfolio is a simple long-term investing strategy using three low-cost index funds: a US total stock market fund, an international stock fund, and a bond market fund. It provides broad diversification across thousands of stocks and bonds worldwide, with minimal cost and very little maintenance required. QIs Vanguard or Fidelity better for index fund investing in 2026? ABoth are excellent. For pure cost, Fidelity's ZERO funds (FZROX at 0.00%, FZILX at 0.00%) are the cheapest available - but they're only transferable to other Fidelity accounts. Vanguard's ETFs (VTI at 0.03%, VXUS at 0.07%) are nearly as cheap and can be held at any brokerage. For most long-term investors with a Roth IRA at Fidelity, the ZERO funds are the clear choice. For taxable accounts where you may want flexibility, portable ETFs are smarter. QWhat allocation should I use for a 3-fund portfolio? AIt depends on your time horizon and risk tolerance. A common starting point for investors in their 30s-40s: 60% US total market / 30% international / 10% bonds. More aggressive allocations shift toward equities; more conservative ones increase bonds. The exact percentages matter less than choosing something you'll stick with and not panic-sell during downturns. QHow often should I rebalance a 3-fund portfolio? AQuarterly is sufficient for most investors. The goal is to keep your allocation within a few percentage points of your target. Some investors rebalance annually or only when an asset class drifts more than 5% from target. Most major brokerages have automatic rebalancing tools that handle this for you. QAre Fidelity ZERO funds (FZROX, FZILX) really free? AYes - 0.00% expense ratio, no account minimums, no transaction fees at Fidelity. The trade-off is portability: these funds are proprietary to Fidelity and can't be transferred in-kind to another brokerage. In a tax-advantaged account where you plan to stay at Fidelity, they're a clear win. In a taxable account, the inability to transfer without selling (and potentially triggering capital gains) is worth considering. QShould I use ETFs or mutual funds for my 3-fund portfolio? ABoth work well in 2026. The old argument for mutual funds (easier to automate contributions) largely no longer applies - most brokerages now offer fractional ETF shares and commission-free trading. Mutual funds like FZROX are marginally simpler to dollar-cost average into. ETFs like VTI are more portable across brokerages. Choose based on where you hold the account and whether portability matters. **Categories:** Finance and Investing 101 **Tags:** Equity, Fidelity, funds, index, investing, passive, portfolio, Stock, US, Vanguard --- ### [Master Your Money: The Ultimate Personal Income and Spending Roadmap (2026 Update)](https://savingtoinvest.com/master-your-money-the-ultimate-personal-income-and-spending-roadmap/) **Published:** March 7, 2026 **Author:** Andy **Content:** ### Key Takeaways - Your gross income is the raw material - track every deduction before you can optimize anything - Cover the 'four walls' first: housing, utilities, groceries, transportation - Build an emergency fund of $1,000 first, then grow to 3-6 months of expenses in a high-yield savings account (currently 3.5-4%+ APY) - The 2026 Roth IRA contribution limit increased to $7,500 (up from $7,000 in 2025) - The 2026 401(k) employee contribution limit is $24,500 ($32,500 total with catch-up for those 50+) - High-interest debt - especially credit cards at 20-27% APR - is mathematically impossible to out-invest Your gross paycheck is the starting line for everything. Before you can invest, before you can build an emergency fund, before you can make any financial progress, you need a clear picture of where money enters your life, where it leaks out, and what’s actually left to deploy. Most people skip this step. They focus on take-home pay and treat the rest as fixed costs. That instinct isn’t wrong — but it leaves money on the table and makes it nearly impossible to optimize anything. Here’s the roadmap I’d give someone trying to get a handle on their finances in 2026. Covered in this Article: [Toggle](#) - [Step 1 — Understand Where Your Money Starts](#Step_1_%E2%80%94_Understand_Where_Your_Money_Starts) - [Step 2 — Cover the “Four Walls” First](#Step_2_%E2%80%94_Cover_the_%E2%80%9CFour_Walls%E2%80%9D_First) - [Step 3 — Build an Emergency Fund](#Step_3_%E2%80%94_Build_an_Emergency_Fund) - [Step 4 — Capture Every Dollar of Employer Match](#Step_4_%E2%80%94_Capture_Every_Dollar_of_Employer_Match) - [Step 5 — Eliminate High-Interest Debt](#Step_5_%E2%80%94_Eliminate_High-Interest_Debt) - [Step 6 — Maximize a Roth IRA](#Step_6_%E2%80%94_Maximize_a_Roth_IRA) - [Step 7 — Protect What You’ve Built](#Step_7_%E2%80%94_Protect_What_Youve_Built) - [Step 8 — Save for Mid-Term Goals](#Step_8_%E2%80%94_Save_for_Mid-Term_Goals) - [Step 9 — Understand Your Tax Bracket](#Step_9_%E2%80%94_Understand_Your_Tax_Bracket) - [Step 10 — Spend Lifestyle Money Intentionally](#Step_10_%E2%80%94_Spend_Lifestyle_Money_Intentionally) - [Step 11 — Monthly Review (20 Minutes)](#Step_11_%E2%80%94_Monthly_Review_20_Minutes) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) ## Step 1 — Understand Where Your Money Starts Gross income is the raw material for everything else. Before building any investment strategy, you need to trace every deduction from the top down — taxes, FICA, benefits premiums — to see exactly where money leaves before you see it. Most of this is non-negotiable. Federal and state income taxes, Social Security (6.2%) and Medicare (1.45%), health insurance premiums. Understanding these deductions transforms your finances from a guessing game into something you can actually manage. What remains after all mandatory deductions is your **net pay** — your true starting point for every decision below. ## Step 2 — Cover the “Four Walls” First Net pay must fund the basics before anything else. Housing (mortgage or rent), utilities, groceries, transportation — these are non-negotiable. You can’t build wealth if you’re scrambling for basics. I’d argue housing should stay below 30% of take-home pay if you can manage it. That’s a rough benchmark, not a law, but it leaves enough room to do the rest of the steps here. Transportation often gets underestimated. A car payment, insurance, gas, and maintenance can easily run $800–$1,000/month for one vehicle. Track the full number, not just the loan payment. ## Step 3 — Build an Emergency Fund Before you invest a single dollar, put $1,000 in a liquid, separate account. That’s the starter buffer — enough to handle a blown tire or unexpected medical copay without reaching for a credit card. Then grow it to 3–6 months of living expenses. Keep it in a high-yield savings account (HYSA). As of mid-2026, the best HYSAs are paying 3.5–4.15% APY — your emergency fund should at minimum keep pace with the national average, which it won’t do in a standard bank savings account earning 0.38%. Households with emergency funds consistently report lower financial stress and fewer debt relapses. It buys you time and options when things go sideways. ## Step 4 — Capture Every Dollar of Employer Match If your employer offers a 401(k) or 403(b) match, contribute enough to capture the full amount — before you do almost anything else. An employer match is an immediate, guaranteed 100% return on your contribution. There’s no investment on earth that reliably beats it. For 2026, the 401(k) employee contribution limit increased to **$24,500** (up from $23,500 in 2025). If you’re 50 or older, the total limit with catch-up contributions rises to $32,500. Even a 3% match on a $60,000 salary is $1,800/year of free money. Over a 30-year career, that compounds into something significant. Don’t leave it on the table. ## Step 5 — Eliminate High-Interest Debt Credit card debt — often carrying 20–27% APR — is structurally impossible to out-invest. There’s no broadly available investment that reliably returns 24% annually. Every month you carry a balance, that interest rate is eating into everything else. Two methods that work: the **Debt Snowball** (pay the smallest balance first for psychological momentum) or the **Debt Avalanche** (pay the highest-rate debt first for maximum math efficiency). Either beats doing nothing. Pick the one you’ll actually stick to. Eliminating credit card debt is equivalent to giving yourself a permanent raise. Every dollar no longer going to interest is a dollar that can compound for you. ## Step 6 — Maximize a Roth IRA With high-interest debt cleared, the Roth IRA is my next priority — and I say that as someone who’s personally watched the tax-free growth add up over the years. For 2026, the IRA contribution limit **increased to $7,500** (up from $7,000 in 2024–2025). If you’re 50 or older, you can contribute $8,500. That increase matters — contribute as early in the year as you can to maximize the compounding window. **Example — Sarah, age 30:** Sarah contributes $7,500 to a Roth IRA in 2026 and invests it in a low-cost index fund averaging 7% annually. She never contributes again. By 65, that single contribution grows to roughly $80,000 — tax-free. If she maxes out every year through retirement, she’s looking at well over $1 million. The Roth’s key advantage: qualified withdrawals in retirement are completely tax-free, and you can always withdraw your contributions (not earnings) without penalty in a genuine emergency. That flexibility is worth something. ## Step 7 — Protect What You’ve Built Two insurance categories most people underinvest in: term life and disability. Term life is essential if anyone depends on your income. A $500,000–$1 million policy typically costs $20–$40/month for someone in their 30s in good health. If you have a spouse, kids, or dependents, not having it is a significant financial risk. Disability insurance protects your ability to earn. Social Security disability is hard to qualify for and pays less than most people expect. An own-occupation disability policy through your employer or privately ensures your income stream continues if you’re unable to work in your field. Review both policies annually — especially after major life changes like having kids, buying a home, or a big income increase. ## Step 8 — Save for Mid-Term Goals Life isn’t just about the next paycheck or the distant retirement. A down payment on a house, a car replacement fund, a planned career transition — these need dedicated accounts, separate from both your emergency fund and your retirement accounts. A taxable brokerage account works well for goals 5–10 years out. Unlike a savings account, it can generate real returns. Unlike a retirement account, there’s no penalty for early withdrawal if your timeline changes. Just be mindful of [capital gains tax](https://savingtoinvest.com/capital-gains-tax-short-and-long-term-rates-plus-other-factors-to-consider/) on assets held less than a year — long-term rates (assets held 12+ months) are significantly lower. Automate transfers to goal-specific accounts. The money has to be designated before you can spend it on something else. ## Step 9 — Understand Your Tax Bracket Knowing your marginal [tax bracket](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/) is surprisingly important for optimizing almost every other step here. It determines whether a Traditional or Roth IRA conversion makes sense, whether selling an asset this year or next is better, and how much of each dollar you actually keep. Most people know roughly what they pay in taxes but don’t know their marginal rate — worth 10 minutes to look up. ## Step 10 — Spend Lifestyle Money Intentionally After you’ve funded the steps above — essentials, emergency fund, employer match, debt payoff, Roth IRA, insurance, mid-term goals — whatever remains is genuinely discretionary. Travel, dining, hobbies, entertainment. Spend this money without guilt. You’ve already done the responsible work. The goal isn’t deprivation — it’s doing the responsible things first so the fun spending doesn’t undercut your financial foundation. The trap most people fall into is spending in the wrong order: lifestyle first, obligations second. This system reverses that. ## Step 11 — Monthly Review (20 Minutes) A plan is only useful if you check it. I do a 20-minute monthly review — look at bank and credit card statements, compare actual vs. planned spending, flag anything that shifted. Three things I specifically watch for: - “Ghost subscriptions” — recurring charges I forgot about - Lifestyle creep after a raise (I try to redirect at least half of any income increase to investments before upgrading spending) - Anything that changed in my life that should trigger a budget adjustment The numbers will drift. The review is how you catch it before it compounds into a problem. --- Things can shift — especially contribution limits and interest rates. I’ll update this page as figures change. [Subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). --- ## Looking Ahead: 2027 Outlook The 2026 Roth IRA limit is $7,500 and the 401(k) limit is $24,500. For 2027, IRS adjustments will depend on inflation data through Q3 2026 — with the Fed funds rate holding at 3.50–3.75% and inflation moderating, I’d expect modest increases similar to 2026’s $500 IRA bump, but official numbers won’t be confirmed until October or November 2026. I’ll update this page when the IRS announces. --- **Related reading:** - [2026–2027 Roth IRA and Traditional IRA Contribution and Income Limits](https://savingtoinvest.com/traditional-ira-versus-roth-ira-contribution-and-phase-out-income-limits/) - [2026–2027 401(k), 403(b) and TSP Contribution Limits](https://savingtoinvest.com/taking-advantage-of-new-401k/) - [The Power of Compounding: Why Starting Early Changes Everything](https://savingtoinvest.com/power-of-compounding-1-million-now-or/) - [2026–2027 IRS Tax Brackets and Rates](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/) - [Capital Gains Tax Rates: Short-Term vs Long-Term](https://savingtoinvest.com/capital-gains-tax-short-and-long-term-rates-plus-other-factors-to-consider/) Frequently Asked Questions QWhat is the Roth IRA contribution limit for 2026? AThe 2026 Roth IRA contribution limit is $7,500, up $500 from $7,000 in 2024 and 2025. If you're 50 or older, you can contribute $8,500 total (the base limit plus a $1,000 catch-up contribution). This is the combined limit across all your IRAs - you can't contribute $7,500 to a Roth and another $7,500 to a Traditional IRA in the same year. QWhat is the 401(k) contribution limit for 2026? AThe 401(k) employee contribution limit for 2026 is $24,500, up from $23,500 in 2025. If you're 50 or older, the catch-up contribution brings the total to $32,500. There's also a special higher catch-up limit for those aged 60-63 under SECURE 2.0. QHow much should I have in an emergency fund? AThe goal is 3-6 months of essential living expenses in a liquid account. Start with $1,000 as a starter buffer before focusing on debt or investing, then build from there. In 2026, top high-yield savings accounts pay 3.5-4.15% APY - keep your emergency fund in one of those rather than a standard savings account earning 0.38%. QShould I pay off debt or invest first? AHigh-interest debt (credit cards at 20-27% APR) should almost always be paid off before investing beyond the employer 401(k) match. It's nearly impossible to earn consistent returns that beat a 24% guaranteed cost. Once high-interest debt is cleared, the calculus shifts - mortgage debt at 6-7% is worth carrying alongside investing in a tax-advantaged account. QIs Roth or Traditional IRA better? AIt depends on whether you expect to be in a higher or lower tax bracket in retirement. Roth contributions are made with after-tax dollars - you pay taxes now, withdrawals in retirement are tax-free. Traditional IRA contributions may be tax-deductible now, but withdrawals are taxed. If you're early in your career and expect income to grow, Roth typically wins. If you're in a high bracket now and expect lower income in retirement, Traditional may be better. QWhat's the best order of operations for investing? A(1) Capture the full employer 401(k) match, (2) build a $1,000 emergency starter fund, (3) pay off high-interest debt, (4) max out a Roth IRA ($7,500 in 2026), (5) increase 401(k) contributions beyond the match, (6) save for mid-term goals in a taxable brokerage. This order maximizes guaranteed returns and tax advantages before reaching taxable accounts. **Categories:** Personal Finance and Money --- ### [The A to Z of Good Personal Finance: My Saving and Investing Philosophy](https://savingtoinvest.com/a-to-z-of-good-personal-finance/) **Published:** August 5, 2008 **Author:** Andy **Content:** ### Key Takeaways - The most powerful personal finance move is spending less than you earn - everything else builds on that - High-interest credit card debt (typically 20-27% APR) should be your first financial priority to eliminate - Compound growth is the engine of long-term wealth - time in the market beats timing the market - Tax-advantaged accounts (Roth IRA, 401k) are the highest-leverage vehicles for most people - No single financial principle works without discipline and consistency I wrote the first version of this list back in 2008 — which tells you something: the fundamentals of good personal finance don’t change much. What changes is the context around them. Interest rates, tax rules, available tools. But the underlying principles? Still the same. **A — Avoid paying credit card balances late.** You end up paying interest rates that are nearly impossible to out-invest (typically 20–27% APR in 2026), and before long you owe far more than you actually spent. [Credit card debt](https://savingtoinvest.com/the-four-deadly-credit-card-mistakes/) is the most expensive form of debt, the easiest to accumulate, and the first one to eliminate. Credit card companies spend billions acquiring customers who’ll eventually become fee generators. Don’t be that customer. **B — Budgeting.** There’s one simple rule to building wealth: spend less than you earn. Most people know roughly what they earn. The problem is tracking where the money actually goes. I’d recommend keeping a budget for at least 3 months to get an honest picture of your spending patterns. Once you know them, you can change them. See [my full income and spending roadmap](https://savingtoinvest.com/master-your-money-the-ultimate-personal-income-and-spending-roadmap/) for a step-by-step system. **C — Credit Cards.** Good tool or financial trap — depends entirely on how you use them. Paying your full balance on time means you get 30–55 days of free credit, plus rewards or cash back on spending you’d make anyway. Carrying a balance flips that equation completely. The card starts paying you negative 24% annually. Pick the right card for your actual spending habits, use it like a debit card (only spend what you have), and pay it in full every month. **D — Debt.** Not all debt is bad. Bad debt is credit card balances, high-rate personal loans, buy-now-pay-later that carries interest. Good debt is a mortgage at a rate you can service, a student loan that genuinely increases your earning power, or a business loan with a clear return. The question to ask before taking on any debt: does the return on what I’m borrowing for exceed the interest rate? If yes, it can make sense. If no, don’t do it. **E — Earn more, not just spend less.** The math of wealth has two levers: income and expenses. Most personal finance advice focuses almost entirely on the expense side, but there’s a ceiling to how much you can cut. There’s no ceiling on how much you can earn. Skills, side income, career advancement — these compound over a lifetime just like investments do. **F — Family and Friends.** This should be the foundation, not the afterthought. I’ve seen people make financially optimal decisions that wrecked their relationships, and people make financially suboptimal decisions that built something worth having. Money should enable the life you want — not replace it. Keep that in mind when you’re optimizing every last dollar. **G — Give.** When you’re in a financially stable position, give something back — whether that’s to a charity, a community organization, or someone in your life who needs it. I’ve found generosity doesn’t actually cost as much as it seems, and the compounding returns on goodwill are real. The one exception I’d make: tipping should be proportionate to service actually rendered, not social pressure. **H — Habit, not hustle.** The people I’ve seen build the most wealth aren’t the ones working 80-hour weeks and making dramatic financial moves. They’re the ones who set up automatic contributions to their 401k and Roth IRA, never touched them during downturns, and showed up consistently for 20 or 30 years. [Compound growth](https://savingtoinvest.com/power-of-compounding-1-million-now-or/) does the heavy lifting if you just get out of its way. **I — Investing.** To get financially free you have to make your money work for you — you can’t get there on salary alone. You’re probably already investing if you have a [401k or IRA](https://savingtoinvest.com/taking-advantage-of-new-401k/), even if you don’t think of it that way. The key is understanding what your money is actually doing in those accounts. A target-date fund or low-cost index fund portfolio is a better starting point than most people assume. *[Subscribe here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get updates when I refresh key figures on this page.* **J — Just start.** Procrastination is the biggest wealth destroyer I know of — more than bad stock picks, more than overspending. Every month you don’t start investing is a month of compound growth you don’t get back. Break it down to one small action: open the account today, set up the automatic contribution tomorrow. The rest follows. **K — Keep capturing your employer match.** If your employer offers a 401k match and you’re not contributing enough to capture all of it, you’re leaving guaranteed 100% returns on the table. I’ve said it before and I’ll keep saying it: there is no better risk-free return available anywhere. The 2026 employee 401k contribution limit is $24,500 — or $32,500 if you’re 50 or older. **L — Long-term thinking.** Short-term trading rarely works for people who do it part-time. The most tax-efficient path to wealth for most people is retirement accounts — [401k, Roth IRA, Traditional IRA](https://savingtoinvest.com/traditional-ira-versus-roth-ira-contribution-and-phase-out-income-limits/) — held consistently over decades. Selling during every downturn and buying back after the recovery is the single most reliable way to underperform. **M — Match your funds to your costs.** As my portfolio has grown, I’ve leaned more heavily on index funds and ETFs rather than picking individual stocks. The evidence is clear: most actively managed funds don’t beat their benchmark index over a 10-year period, after fees. Vanguard and Fidelity still offer the lowest-cost options I’m aware of. Minimizing the [3-fund portfolio approach](https://savingtoinvest.com/simpler-and-smarter-investing-with-a-3-index-fund-portfolio-choosing-between-vanguard-and-fidelity-equity-funds/) — US stocks, international stocks, bonds — is hard to improve on for most long-term investors. **N — No unnecessary fees.** Fees compound against you the same way returns compound for you. A 1% annual management fee on a $500,000 portfolio costs you $5,000 per year — money that would have been compounding in your account. Demand low-fee options on your savings account, your investment accounts, and your credit cards. The cumulative impact over 20–30 years is substantial. **O — Overconfidence is expensive.** This applies most obviously to trading options or individual stocks, but it shows up everywhere in personal finance — skipping insurance because you think nothing bad will happen, assuming real estate only goes up, taking on debt for a business idea without stress-testing the downside. Confidence is good. Overconfidence is the precursor to most financial disasters I’ve seen. **P — Plan.** Goals without a plan are just wishes. I’m a believer in having a written financial plan — even a simple one — with specific targets for retirement savings rate, debt payoff timeline, and emergency fund size. When you have the plan written down, day-to-day decisions become easier because you have something to check yourself against. **Q — Quit losers.** One of the hardest things in investing is selling a position that’s down, especially one you believed in. But holding a loser “hoping” it recovers while better opportunities sit elsewhere is a real cost. Under US tax law, up to $3,000 in net [capital losses](https://savingtoinvest.com/capital-gains-tax-short-and-long-term-rates-plus-other-factors-to-consider/) per year can offset ordinary income, and additional losses carry forward. Cutting a losing position isn’t failure — it’s discipline. **R — Research before you commit.** Before any significant financial decision — investment, loan, insurance product — read what experts say and then form your own view. If you can’t explain to someone else what you’re investing in and why, that’s a signal you don’t understand it well enough to own it yet. **S — Spend less than you earn.** This is the whole game, condensed. Everything else on this list is commentary. If you earn $80,000 and spend $75,000, you have $5,000 to deploy. If you earn $80,000 and spend $85,000, no amount of investment skill digs you out. The gap between what you earn and what you spend is the only raw material for building wealth. **T — Taxes matter as much as returns.** It’s not what you earn, it’s what you keep. A 401k and [Roth IRA](https://savingtoinvest.com/traditional-ira-versus-roth-ira-contribution-and-phase-out-income-limits/) give you the most powerful legal tax advantages available to most people. Beyond that, understand how [tax brackets](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/) actually work (marginal, not flat), know your capital gains holding periods, and consider an [HSA](https://savingtoinvest.com/hsa-limits-and-tax-rules-how-to-best-utilize-health-savings-accounts/) if you’re on a high-deductible health plan — it’s the only triple-tax-advantaged account that exists. **U — Understand what you’re signing.** Adjustable-rate mortgages with teaser rates, variable-rate student loans, subscription contracts with automatic renewals — these trap people specifically because they don’t read the fine print. Whatever you’re committing to financially, understand the worst-case scenario before signing. **V — Value your time correctly.** Your earning power is your most valuable financial asset, especially early in your career. Every dollar of skills, education, or networking that increases your hourly rate compounds for decades. Don’t optimize your investment portfolio down to the last basis point while neglecting the much larger lever of your own income growth. **W — Watch for lifestyle creep.** The biggest threat to wealth accumulation isn’t a stock market crash — it’s raising your spending every time your income rises. When you get a raise, I’d try to redirect at least half of it before you adjust to the new take-home. The spending level you were comfortable with before the raise is still fine. The extra goes to work for you. **X — X out bad financial habits before they compound.** Small bad habits are expensive at scale. A $6 daily coffee habit is $2,190/year. A gym membership you don’t use is a subscription you’re paying for nothing. More seriously: carrying any credit card balance, missing retirement contributions to fund lifestyle spending, or avoiding looking at your net worth because the number is uncomfortable. None of these are fatal individually. All of them compound. The fix is awareness — run an annual audit of recurring expenses and honestly assess what’s worth keeping. **Y — Yes to professional help when it’s worth it.** You don’t have to be the expert at everything. A fee-only financial advisor (one who doesn’t earn commissions) can be worth their cost during complicated life events: a large inheritance, a divorce, the years just before retirement. A good accountant often saves more than they cost. Use your time on the things where your judgment adds the most value, and delegate the rest. **Z — Zero tolerance for overdue credit card balances.** Pay on time, in full, every month — or don’t use credit cards at all. The people who treat a credit card like a debit card (spend only what they have, pay the full statement balance monthly) capture all the benefits. Everyone else subsidizes those rewards through interest charges. The credit card companies built their entire business model on the assumption that enough cardholders won’t pay in full. Don’t be part of that math. --- I revisit this list every couple of years. The letters don’t change — the context around each one does. If you want to know when I update key figures on this page, [subscribe here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). --- **Related reading:** - [Master Your Money: The Ultimate Personal Income and Spending Roadmap](https://savingtoinvest.com/master-your-money-the-ultimate-personal-income-and-spending-roadmap/) - [The Power of Compounding: $1 Million Now or a Penny Doubled for 30 Days?](https://savingtoinvest.com/power-of-compounding-1-million-now-or/) - [2026–2027 Roth IRA and Traditional IRA Contribution and Income Limits](https://savingtoinvest.com/traditional-ira-versus-roth-ira-contribution-and-phase-out-income-limits/) Frequently Asked Questions QWhat is the most important personal finance rule? ASpend less than you earn. Everything else - investing, tax optimization, debt management - depends on having a positive gap between income and spending. Without that gap, there's nothing to work with. With it, even modest amounts compound into significant wealth over time. QWhat's the best way to eliminate credit card debt? AStop adding to the balance first. Then choose between the Debt Avalanche (pay the highest-rate balance first - mathematically optimal) or the Debt Snowball (pay the smallest balance first - psychologically motivating). Both work. The one you'll actually stick to is the right one. Credit card interest rates in 2026 typically run 20-27% APR - you can't out-invest that rate, so clearing the debt is the highest guaranteed return available. QShould I invest or pay off debt first? ACapture any employer 401k match first - that's an immediate 100% return. After that, pay off high-interest debt (credit cards) before investing further. Once high-interest debt is cleared, the calculus changes: a mortgage at 6-7% is worth carrying alongside Roth IRA and 401k contributions, since your expected long-term investment returns likely exceed the debt's interest rate. QWhat's the best investment for a beginner? AA low-cost index fund inside a tax-advantaged account (Roth IRA or 401k). Specifically, a total stock market index fund or a target-date retirement fund from Vanguard or Fidelity. These give you instant diversification, very low fees, and don't require you to pick individual stocks. The most important thing is starting - the specific fund matters far less than just getting money working for you. QHow much should I have in an emergency fund? AThree to six months of essential living expenses, kept in a high-yield savings account (HYSAs currently pay 3.5-4.15% APY in mid-2026). Start with $1,000 as a buffer before you focus on investing - enough to handle a car repair or medical copay without reaching for a credit card. QIs it better to contribute to a Roth IRA or Traditional IRA? AIf you're earlier in your career and expect your income (and tax rate) to be higher in the future, Roth tends to win - you pay taxes now on a smaller amount, and all growth comes out tax-free in retirement. If you're in a high bracket now and expect to be in a lower one at retirement, Traditional often makes more sense. The detailed breakdown is in my Roth vs. Traditional IRA guide. **Categories:** Personal Finance and Money **Tags:** 401K, credit, finance, taxes --- ### [When to Change Your Paycheck Withholding (W-4): The Life Events and Income Changes That Trigger It](https://savingtoinvest.com/change-your-paycheck-tax-withholding-after-these-personal-and-financial-life-events/) **Published:** September 15, 2011 **Author:** Andy **Content:** ### Key Takeaways - Life events - marriage, divorce, a new child, a home purchase, retirement, a job classification change - are the biggest drivers of withholding changes because they shift your filing status and dependents - Employment income changes for you, your spouse, or a dependent (new job, lost job, side business, part-time work) all require a withholding or estimated-tax adjustment - Income the IRS doesn't automatically withhold on - interest, dividends, capital gains, self-employment income, certain retirement distributions - is one of the most common blind spots - 2026's new OBBBA overtime and tip deductions can mean you're now over-withheld if your employer's payroll system hasn't adjusted for them - worth checking specifically this year - The IRS Tax Withholding Estimator at irs.gov gives a step-by-step, personalized withholding calculation in about 15 minutes - A good habit: re-run your withholding check near year-end, once you have a clearer picture of variable income like investment gains or bonuses Most people fill out a Form W-4 once, when they start a job, and never touch it again. That’s a mistake, because a long list of ordinary life events — marriage, a new baby, a side gig, a big itemized deduction — quietly changes how much tax you actually owe without changing what’s coming out of your paycheck. The result is one of two outcomes: you owe a surprise balance (plus possible penalties) at filing time, or you’re over-withholding and giving the IRS an interest-free loan all year instead of keeping that money in your own pocket. Either way, the fix is the same — submit an updated W-4 to your employer’s payroll department. Covered in this Article: [Toggle](#) - [Life Events That Change Your Tax Picture](#Life_Events_That_Change_Your_Tax_Picture) - [Employment Income Changes](#Employment_Income_Changes) - [Income Not Subject to Automatic Withholding](#Income_Not_Subject_to_Automatic_Withholding) - [Itemized Deductions and Tax Credits](#Itemized_Deductions_and_Tax_Credits) - [New for 2026: The OBBBA Overtime and Tip Deductions](#New_for_2026_The_OBBBA_Overtime_and_Tip_Deductions) - [Other Deductible Payments to Account For](#Other_Deductible_Payments_to_Account_For) - [How to Actually Update Your Withholding](#How_to_Actually_Update_Your_Withholding) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027 Withholding Considerations](#Looking_Ahead_2027_Withholding_Considerations) ## Life Events That Change Your Tax Picture These have the largest impact on your withholding because they can change your entire filing status: - **Marriage or divorce** — shifts your filing status and standard deduction entirely - **Birth or adoption of a child** — adds a dependent and potential Child Tax Credit eligibility - **Purchase of a new home** — mortgage interest and property taxes can change your itemized-versus-standard deduction math - **Job classification change** — moving from salaried employee to gig or contract work changes how (and whether) taxes are withheld at all - **Retirement** — pension and retirement account distributions have their own withholding rules, separate from wage withholding - **Bankruptcy** — can affect which debts are dischargeable and how certain forgiven debt is treated for tax purposes **Example — Priya and Daniel get married in June.** Their combined income moves them from two “single” withholding elections to a “married filing jointly” household, which can meaningfully change their effective tax rate in either direction depending on how their individual incomes compare. Updating each W-4 right after the wedding — rather than waiting until next filing season — avoids a surprise either way. ## Employment Income Changes If you, your spouse, or a dependent gets or loses a job, your withholding needs to move with it. This includes: - Starting or losing a job — yours or your spouse’s - Picking up part-time work or a side business alongside your main job - A significant raise, bonus, or commission structure change Side income is the one people miss most often. Even modest gig or freelance income needs either paycheck withholding adjustments or quarterly estimated payments — otherwise you’re looking at both a balance due and an underpayment penalty at filing time. ## Income Not Subject to Automatic Withholding This category catches a lot of people, because it’s variable income with no automatic withholding mechanism attached: - Interest income (savings accounts, CDs) - Dividends and capital gains - Self-employment income - IRA and certain Roth distributions You can still cover this through your paycheck withholding (by electing extra withholding on your W-4) or through quarterly estimated payments. A practical approach: update your W-4 toward year-end once you have a realistic picture of what your investment or side income actually totaled for the year, rather than guessing in January. ## Itemized Deductions and Tax Credits If the deductions or credits you plan to claim change meaningfully, your withholding should move too. Common itemized deductions to watch: - Medical expenses above the deduction threshold - Mortgage interest and state/local property taxes - Charitable donations - Dependent care expenses And credits that directly affect how much you should withhold: the [Child Tax Credit](https://savingtoinvest.com/child-and-kiddie-tax-credit-and-income-thresholds/), education credits, the [Earned Income Tax Credit](https://savingtoinvest.com/earned-income-tax-credit-eitc-qualification-and-income-threshold-limits/), and the foreign tax credit. ## New for 2026: The OBBBA Overtime and Tip Deductions This is the one I’d specifically flag for 2026. The One Big Beautiful Bill created two new deductions — up to $12,500 of qualified overtime pay ($25,000 married filing jointly) and up to $25,000 of reported tip income — available whether or not you itemize. Payroll withholding tables don’t automatically account for every taxpayer’s eligibility for these deductions, which means plenty of overtime-heavy and tipped workers are now being over-withheld relative to their actual 2026 tax liability. If either applies to you, it’s worth running the numbers rather than assuming your paycheck withholding already reflects it. See our full [tax and financial planning playbook](https://savingtoinvest.com/tax-and-financial-planning-playbook/) for the complete rundown of what changed this year. ## Other Deductible Payments to Account For A few other deductions that reduce taxable income and are worth reflecting in your withholding: IRA contributions, health savings account contributions, student loan interest, jury duty pay you had to remit to an employer, and alimony under pre-2019 divorce agreements (alimony rules changed for divorces finalized after 2018 — check which rules apply to your situation). *Withholding rules shift with tax law most years — [subscribe here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) and I’ll flag it when something changes that affects your W-4.* ## How to Actually Update Your Withholding The [IRS Tax Withholding Estimator](https://www.irs.gov/individuals/tax-withholding-estimator) walks you through a step-by-step calculation tailored to your situation — wages, other income, deductions, and credits — and tells you specifically what to put on a new W-4. It takes about 15 minutes if you have a recent pay stub and last year’s return handy. Once you know your target, submit the updated [Form W-4](https://www.irs.gov/forms-pubs/about-form-w-4) directly to your employer’s payroll or HR department — the IRS doesn’t process W-4 changes itself. ## Common Issues to Watch Out For Mistakes I see repeatedly on this topic: - **Filling out a W-4 once and never revisiting it.** Even without a major life event, income and deductions drift enough over a few years to make an old W-4 inaccurate. - **Forgetting a spouse’s or dependent’s income changes.** A second job or a spouse re-entering the workforce affects your combined household withholding, not just the person whose paycheck changed. - **Not withholding anything on self-employment or gig income.** This is the single most common way people end up with an unexpected balance due plus an underpayment penalty. - **Assuming payroll automatically caught the OBBBA overtime/tip deductions.** Many systems haven’t been updated to reflect them individually — check rather than assume. - **Waiting until filing season to notice a problem.** By then, the only fix is paying what’s owed; adjusting withholding earlier in the year would have spread that impact out or avoided it. ## Looking Ahead: 2027 Withholding Considerations The IRS updates the underlying withholding tables each year to reflect new tax brackets, the standard deduction, and any legislative changes — typically finalized in December for the following tax year. I’d watch two things heading into 2027: whether the temporary OBBBA overtime and tip deductions get extended, modified, or allowed to lapse (which would meaningfully affect withholding for affected workers either way), and whether the IRS updates payroll withholding tables to more precisely reflect those deductions automatically rather than leaving it to individual W-4 elections. I’ll update this page as the 2027 withholding tables and any legislative changes become clear. **Related reading:** - [The tax and financial planning playbook for 2026–2027](https://savingtoinvest.com/tax-and-financial-planning-playbook/) - [Child Tax Credit (CTC) and Kiddie Tax thresholds](https://savingtoinvest.com/child-and-kiddie-tax-credit-and-income-thresholds/) - [Earned Income Tax Credit (EITC) income limits and qualification rules](https://savingtoinvest.com/earned-income-tax-credit-eitc-qualification-and-income-threshold-limits/) Frequently Asked Questions QWhen should I submit a new W-4 to my employer? AAnytime you have a major life event (marriage, divorce, a new child, a home purchase, retirement) or a significant income change (new job, lost job, side income, a big raise). It's also worth reviewing near year-end if you have variable income like investment gains or bonuses. QWhat income doesn't automatically have taxes withheld? AInterest, dividends, capital gains, self-employment income, and certain IRA or Roth distributions have no automatic withholding mechanism. You need to either elect extra withholding on your W-4 or make quarterly estimated tax payments to cover this income. QHow do the new 2026 overtime and tip deductions affect my withholding? AThe OBBBA's new deductions for qualified overtime pay (up to $12,500, or $25,000 married filing jointly) and reported tips (up to $25,000) aren't automatically reflected in every payroll system's withholding calculation. If you're eligible for either, check your withholding rather than assuming your paycheck already accounts for it. QHow long does it take to update my tax withholding? AUsing the IRS Tax Withholding Estimator typically takes about 15 minutes if you have a recent pay stub and your last tax return available. Submitting the resulting W-4 to your employer's payroll department is usually processed within one to two pay cycles. QWhat happens if I don't update my withholding after a life event? AYou risk either owing a balance (plus a possible underpayment penalty) at filing time if you were under-withheld, or over-withholding and giving the IRS an interest-free loan of your own money throughout the year instead of keeping it in your paycheck. QWhere can I find the official IRS withholding tool? AThe IRS Tax Withholding Estimator is available directly at irs.gov/individuals/tax-withholding-estimator. It's free and gives a personalized recommendation for what to put on your W-4. **Categories:** Taxes and Retirement **Tags:** credit, Credits, Deductions, expenses, IRS, paycheck, tax, W4, withholding --- ### [The Tax and Financial Planning Playbook: Maximizing Deductions, Credits, and Retirement Savings for 2026–2027](https://savingtoinvest.com/tax-and-financial-planning-playbook/) **Published:** November 24, 2025 **Author:** Andy **Content:** ### Key Takeaways - The 2026 standard deduction is $32,200 (married filing jointly), $16,100 (single/married filing separately), and $24,150 (head of household) - The 37% top tax bracket now starts at $640,600 (single) and $768,700 (married filing jointly) - higher thresholds mean more income taxed at lower rates - 401(k)/403(b)/457(b) contribution limit rises to $24,500, with an $8,000 catch-up (50+) and an $11,250 'super catch-up' for ages 60-63 - IRA limit rises to $7,500 ($1,100 catch-up); HSA limits rise to $4,400 (self-only) / $8,750 (family) - Two new OBBBA worker deductions: up to $12,500 ($25,000 joint) of overtime pay, and up to $25,000 of reported tip income - available whether or not you itemize - Child Tax Credit stays at $2,200 per child ($1,700 refundable); EITC maxes out at $8,231 for three or more qualifying children - Taxpayers 65 and older can claim a new temporary $6,000 deduction ($12,000 per couple if both qualify), on top of the regular standard deduction The IRS has finalized its 2026 inflation adjustments, and paired with provisions from the One Big Beautiful Bill (OBBB), they add up to real opportunity: a higher standard deduction, wider tax brackets, bigger retirement contribution limits, and two brand-new deductions for hourly and tipped workers. This page is my running playbook for turning those numbers into an actual plan — what changed, what it’s worth to you, and what to do about it before year-end. I update it annually as new figures and provisions land. Covered in this Article: [Toggle](#) - [2026 Standard Deduction and Tax Bracket Changes](#2026_Standard_Deduction_and_Tax_Bracket_Changes) - [A New, Temporary Deduction for Seniors](#A_New_Temporary_Deduction_for_Seniors) - [Retirement Contribution Limits Jump for 2026](#Retirement_Contribution_Limits_Jump_for_2026) - [New OBBBA Deductions: Overtime and Tip Income](#New_OBBBA_Deductions_Overtime_and_Tip_Income) - [Child Tax Credit and EITC for 2026](#Child_Tax_Credit_and_EITC_for_2026) - [Small Business 401(k) Matching Credit](#Small_Business_401k_Matching_Credit) - [How to Think About Tax Planning: Four Categories to Review Every Year](#How_to_Think_About_Tax_Planning_Four_Categories_to_Review_Every_Year) - [Your Year-End Planning Checklist](#Your_Year-End_Planning_Checklist) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027 Tax and Financial Planning](#Looking_Ahead_2027_Tax_and_Financial_Planning) ## 2026 Standard Deduction and Tax Bracket Changes The standard deduction — what you subtract from your income before tax is calculated — rose again for 2026, on top of the OBBB’s earlier increase: Filing Status2026 Standard DeductionChange from 2025Married Filing Jointly$32,200+$700Single / Married Filing Separately$16,100+$350Head of Household$24,150+$525 The income thresholds for every federal tax bracket also moved up for 2026, which mitigates “bracket creep” — more of your income stays in lower brackets even if your pay rose with inflation. The most consequential shift is at the top: the 37% bracket now starts at **$640,600** for single filers and **$768,700** for married couples filing jointly, both higher than 2025. **Example — Sarah, single, $640,000 taxable income.** In 2025, Sarah would have been right at the edge of the top bracket. The higher 2026 threshold keeps her entirely out of the 37% bracket, saving her real money without her income changing at all. ## A New, Temporary Deduction for Seniors Taxpayers age 65 and older can claim an additional $6,000 deduction per eligible senior under the OBBB — available whether you itemize or take the standard deduction. For a married couple where both spouses are 65+, that’s up to $12,000 in additional deductions on top of the regular standard deduction. ## Retirement Contribution Limits Jump for 2026 If your plan is to save more in tax-advantaged accounts, 2026 gives you more room than any recent year: Retirement Plan2026 Max Contribution2026 Catch-Up (Age 50+)401(k) / 403(b) / 457(b)$24,500$8,000IRA (Traditional & Roth)$7,500$1,100HSA (Self-Only)$4,400$1,000HSA (Family)$8,750$1,000 A special SECURE 2.0 provision also remains in place for workers **age 60 through 63**: a “super” catch-up contribution of $11,250 for 401(k)/403(b)/457(b) plans, higher than the standard 50+ catch-up. High earners should also note SECURE 2.0’s Roth catch-up mandate — see our [SECURE 2.0 Act updates guide](https://savingtoinvest.com/navigating-the-new-rules-how-the-secure-2-0-act-impacts-your-retirement-catch-up-contributions/) for the Roth catch-up rules, the new Saver’s Match, and mandatory auto-enrollment details. **Example — Mark, age 52.** Mark started saving late and wants to close the gap. Between his $24,500 standard 401(k) limit and his $8,000 catch-up, he can contribute up to $32,500 this year — a meaningful jump from 2025’s limits. For a look at how these limits have climbed in recent years, see our [401(k), IRA, and Roth IRA contribution limit history](https://savingtoinvest.com/2022-401k-ira-and-roth-ira-contribution-limits-and-large-income-thresholds-increases-over-2021-levels-official-irs-numbers/). *Tax and contribution limits shift every year, and I keep this page current — [subscribe here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get notified when they do.* ## New OBBBA Deductions: Overtime and Tip Income Two temporary deductions introduced by the OBBB specifically target hourly and service workers, and both are available whether or not you itemize: - **Overtime pay deduction:** Deduct up to $12,500 of qualified overtime pay ($25,000 for married couples filing jointly). - **Tip income deduction:** Qualified service workers can deduct up to $25,000 of reported tip income. **Example — Maya, head of household, restaurant server.** Maya earns $45,000 in wages plus $28,000 in reported tips. She can deduct $25,000 of that tip income, meaningfully lowering her taxable income and potentially dropping her into a lower bracket. ## Child Tax Credit and EITC for 2026 The maximum Child Tax Credit stays at $2,200 per qualifying child, with up to $1,700 of that refundable — meaning you can receive it even if you owe no federal income tax. See our full [Child Tax Credit and Kiddie Tax guide](https://savingtoinvest.com/child-and-kiddie-tax-credit-and-income-thresholds/) for phase-out details. The maximum Earned Income Tax Credit rises to $8,231 for families with three or more qualifying children. Full income limits by family size are in our [EITC qualification guide](https://savingtoinvest.com/earned-income-tax-credit-eitc-qualification-and-income-threshold-limits/). The adoption credit also increased, to a maximum of $17,670 in qualified expenses for 2026. ## Small Business 401(k) Matching Credit Worth knowing if you’re a small-business owner, or if your employer just started offering a 401(k) match: SECURE 2.0 includes a temporary tax credit that offsets a portion of small businesses’ cost of matching employee contributions. It’s one reason more small employers have been adding a match in the last couple of years. If you run a small business, it’s worth a conversation with your CPA; if you’re an employee, it’s worth checking whether your plan added or improved its match this year. ## How to Think About Tax Planning: Four Categories to Review Every Year Beyond chasing this year’s specific numbers, it helps to have a repeatable framework. I like organizing planning decisions into four buckets, an approach borrowed from how larger wealth-planning firms structure client conversations: - **Investment income:** Decisions to sell capital assets should be driven mainly by your investment goals and economic fundamentals — but factor in the tax cost and transaction costs of the sale, plus any Medicare-related tax on unearned income above the relevant thresholds. - **Ordinary income:** Accelerating or deferring compensation (salary, bonuses, commissions) is usually simpler to model than capital gains decisions, since there are fewer transaction costs and the full amount is taxable either way. - **Retirement savings:** This is less about predicting tax-rate direction and more about consistency — you can’t make up a missed contribution year later, and you permanently lose the tax-favored growth on that missed amount. Max out what you can regardless of your rate predictions. - **Deductions:** The key question is which year a deduction generates the most benefit. If you expect your rate to rise, deductions become more valuable later; if it’s falling, they’re more valuable now. Watch how the AMT, phase-outs, and other limitations interact with your specific deductions before timing them. ## Your Year-End Planning Checklist Three moves worth actually doing before December, not just reading about: 1. **Re-evaluate your withholding.** With a higher standard deduction and the new overtime/tip deductions, many workers are now over-withholding. Adjust your [W-4](https://savingtoinvest.com/change-your-paycheck-tax-withholding-after-these-personal-and-financial-life-events/) to see more in each paycheck instead of waiting for a refund. If your refund already came in lower than expected, see [why your tax refund might be lower than last year](https://savingtoinvest.com/why-is-my-tax-refund-so-low-compared-to-prior-years/) before assuming something went wrong. 2. **Max out retirement contributions.** Review your automated 401(k)/IRA contributions against the higher 2026 limits above — most people don’t update their contribution percentage when limits rise, leaving room on the table. 3. **Run an HSA strategy check.** If you have an HSA-eligible health plan, maximizing contributions captures the full triple tax benefit (deductible in, grows tax-free, tax-free for qualified expenses). ## Common Issues to Watch Out For A few mistakes I see every planning season: - **Not updating W-4 withholding after a life or law change.** New deductions and higher standard deductions change your optimal withholding — set-and-forget W-4s are the most common source of “surprise” refunds or balances due. - **Missing the age 60–63 super catch-up window.** It’s easy to assume the standard 50+ catch-up is your only option; the higher $11,250 figure only applies in that narrow four-year band. - **Assuming itemizing still makes sense.** With standard deductions this high, fewer households benefit from itemizing than a few years ago — run both calculations before assuming. - **Forgetting the overtime/tip deductions have caps.** They reduce taxable income significantly, but they’re not unlimited — model your specific numbers rather than assuming full relief. - **Treating retirement contributions as flexible.** Missed contribution room in a given year is gone permanently — there’s no “catching up” a prior year’s unused space. ## Looking Ahead: 2027 Tax and Financial Planning The IRS typically releases the following year’s inflation adjustments in October or November. Based on recent inflation trends, I’d expect modest increases across the board for 2027 — standard deduction, bracket thresholds, and retirement contribution limits all usually move up 2–4% year over year absent new legislation. The bigger open question is which OBBB provisions are permanent versus temporary. The higher standard deduction and CTC phase-out thresholds are locked in, but the overtime and tip deductions are temporary provisions — I’ll flag here if Congress extends, modifies, or lets them lapse as their expiration approaches. These are projections and provisional predictions, not official figures; I’ll update this page as the IRS releases the 2027 numbers. **Related reading:** - [Child Tax Credit (CTC) and Kiddie Tax thresholds](https://savingtoinvest.com/child-and-kiddie-tax-credit-and-income-thresholds/) - [Earned Income Tax Credit (EITC) income limits and qualification rules](https://savingtoinvest.com/earned-income-tax-credit-eitc-qualification-and-income-threshold-limits/) - [2026 federal tax brackets and standard deduction](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/) - [2026 AMT exemption and phase-out amounts](https://savingtoinvest.com/alternative-minimum-tax-amt-and-exemption-amounts/) Frequently Asked Questions QWhat is the standard deduction for 2026? AFor tax year 2026, the standard deduction is $32,200 for married couples filing jointly, $16,100 for single filers and married individuals filing separately, and $24,150 for heads of household. QWhat are the 2026 401(k) and IRA contribution limits? AThe 401(k)/403(b)/457(b) limit is $24,500 with an $8,000 catch-up for age 50+, or $11,250 for the SECURE 2.0 'super catch-up' available to ages 60-63. The IRA limit is $7,500 with a $1,100 catch-up contribution. QWhat are the new OBBBA deductions for overtime and tips? AThe One Big Beautiful Bill created two new temporary deductions available to both itemizers and non-itemizers: up to $12,500 of qualified overtime pay ($25,000 for married couples filing jointly), and up to $25,000 of reported tip income for qualified service workers. QWhat is the Child Tax Credit worth in 2026? AThe maximum Child Tax Credit is $2,200 per qualifying child, with up to $1,700 of that refundable, meaning you can receive it even if you owe no federal income tax. QHow much is the Earned Income Tax Credit for 2026? AThe maximum EITC for 2026 is $8,231 for families with three or more qualifying children, with lower maximums for fewer children or no children. QIs there a special tax deduction for seniors in 2026? AYes. Taxpayers age 65 and older can claim an additional temporary $6,000 deduction under the OBBB, available whether you itemize or take the standard deduction. A married couple where both spouses qualify can claim up to $12,000. QWhat should I do first with my year-end tax planning? AStart by re-evaluating your W-4 withholding against the higher standard deduction and any overtime/tip deductions you now qualify for, then review your retirement contribution percentages against the higher 2026 limits so you're not leaving tax-advantaged room unused. **Categories:** Taxes and Retirement --- ### [Should You Skip Filing a Tax Return? Minimum Income to File and What Skipping Costs You in 2026](https://savingtoinvest.com/should-you-skip-filing-a-tax-return-heres-why-thats-a-costly-mistake/) **Published:** March 30, 2025 **Author:** Andy **Content:** ### Key Takeaways - For tax year 2025 (filed by April 2026), you must file if gross income is at least $15,750 (single, under 65), $31,500 (married filing jointly, both under 65), or $23,625 (head of household, under 65) - full table below - Self-employed filers must file if net self-employment earnings are $400 or more, regardless of the standard thresholds above - The failure-to-file penalty (5% of unpaid tax per month, up to 25%) is ten times steeper than the failure-to-pay penalty (0.5% per month) - file even if you can't pay - If you're due a refund, the IRS holds it for 3 years from the original due date, then it becomes the property of the U.S. Treasury permanently - Refundable credits require a return. The Earned Income Tax Credit (up to $8,231 for 2026) and the Child Tax Credit's refundable portion are paid out through your tax return - even if you owe zero tax, skipping the filing means skipping the payment - The IRS's 10-year collection clock never starts if you never file - unfiled tax debt can be pursued indefinitely, with penalties and interest compounding the whole time For tax year 2025 — the return most people filed by April 2026 — you were required to file if your gross income was at least $15,750 as a single filer under 65, or $31,500 married filing jointly with both spouses under 65. Below that, the IRS generally doesn’t require you to file based on income alone. But “not required” and “shouldn’t bother” are two different things, and I get this question every filing season: if my income is low, or the IRS is stretched thin, can I just skip it? The short answer is almost always no. Skipping a return you’re required to file risks steep penalties and indefinite collection exposure. And even when you’re *not* required to file, skipping one can quietly cost you thousands in refundable credits you’d otherwise get paid for free. Covered in this Article: [Toggle](#) - [Minimum Income to File: 2025 and 2026 Thresholds](#Minimum_Income_to_File_2025_and_2026_Thresholds) - [Why the Income Threshold Isn’t the Whole Story](#Why_the_Income_Threshold_Isnt_the_Whole_Story) - [Credits You Lose By Not Filing](#Credits_You_Lose_By_Not_Filing) - [Penalties for Not Filing](#Penalties_for_Not_Filing) - [Wage Garnishments, Liens, and Bank Levies Are Real](#Wage_Garnishments_Liens_and_Bank_Levies_Are_Real) - [The Collection Clock Never Starts If You Never File](#The_Collection_Clock_Never_Starts_If_You_Never_File) - [Two Worked Examples](#Two_Worked_Examples) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027 Filing Thresholds](#Looking_Ahead_2027_Filing_Thresholds) ## Minimum Income to File: 2025 and 2026 Thresholds These are IRS gross-income filing thresholds from [Publication 501](https://www.irs.gov/publications/p501). Gross income means money, goods, property, and services that aren’t tax-exempt — including income earned outside the U.S. **Tax year 2025 (returns filed in 2026) — official IRS Table 1:** Filing StatusUnder 6565 or OlderSingle$15,750$17,750Head of Household$23,625$25,625Married Filing Jointly (both spouses)$31,500$33,100 (one 65+) / $34,700 (both 65+)Married Filing Separately$5 (any age)$5 (any age)Qualifying Surviving Spouse$31,500$33,100 **Tax year 2026 (returns filed in 2027) — projected from the IRS’s already-released standard deduction figures (Revenue Procedure 2025-32):** Filing StatusUnder 65 (projected)Single$16,100Head of Household$24,150Married Filing Jointly (both spouses)$32,200Married Filing Separately$5 (any age) The IRS typically doesn’t publish the official Table 1 filing-requirement chart for a tax year until early in the following year, so the 2026 row is a reasonable projection based on the standard deduction the IRS has already locked in — not yet an official Table 1 figure. I’ll update this table when the official version is released. ## Why the Income Threshold Isn’t the Whole Story A few situations require you to file even if your income is below the table above: - **Self-employment:** If you had $400 or more in net self-employment earnings — freelance work, gig income, a side business — you must file regardless of your total income. - **Married filing separately, spouses living apart:** If you didn’t live with your spouse at year-end and your gross income was at least $5, you must file, regardless of age. - **Advance Premium Tax Credit payments:** If the marketplace paid health insurance subsidies on your behalf during the year, you need to file to reconcile them. - **Unreported tip income or certain Schedule 2 taxes:** These can trigger a filing requirement independent of the income thresholds. Your filing status is determined by your situation on December 31 of the tax year — if you got married mid-year, you file as married for that full year, not single. ## Credits You Lose By Not Filing This is the part people miss. Filing isn’t only about what you owe — for a lot of households, it’s how you *get paid*. These credits are only available if you file a return, even with zero tax liability: - **Earned Income Tax Credit (EITC):** Worth up to $8,046 for 2025 (three or more qualifying children) and up to $8,231 for 2026. It’s fully refundable — the IRS pays it even if you owe no tax at all. See our [EITC income limits and qualification guide](https://savingtoinvest.com/earned-income-tax-credit-eitc-qualification-and-income-threshold-limits/) for the full income table by number of children. - **Child Tax Credit:** Up to $2,200 per qualifying child, with a refundable portion available regardless of tax owed. Full rules in our [Child Tax Credit and Kiddie Tax guide](https://savingtoinvest.com/child-and-kiddie-tax-credit-and-income-thresholds/). - **Withheld tax refunds:** If you had any W-2 withholding during the year, that money is only returned to you by filing — the IRS doesn’t refund it automatically. - **Education credits:** The American Opportunity and Lifetime Learning credits both require a filed return to claim. Skipping a return under the income threshold doesn’t just leave you neutral — for many working families with kids, it means walking away from money the IRS is already sitting on. ## Penalties for Not Filing If you *are* required to file and don’t, the penalties stack up fast: - **Failure-to-File Penalty:** 5% of unpaid tax for each month (or part of a month) your return is late, capped at 25%. - **Failure-to-Pay Penalty:** 0.5% of unpaid tax per month, also capped at 25% — but this applies separately from the failure-to-file penalty. - **Interest:** Charged on unpaid tax and compounds daily until paid in full, on top of both penalties above. The failure-to-file penalty being ten times steeper than failure-to-pay is intentional — the IRS wants your return even if you can’t pay the bill yet. File on time, then work out payment separately. ## Wage Garnishments, Liens, and Bank Levies Are Real Skipping a return doesn’t mean the IRS forgets. Even with a leaner workforce, most collection tools are largely automated and don’t require a live audit to trigger: - **Wage garnishments** — the IRS can take a portion of your paycheck until the debt is settled - **Bank levies** — funds in your account can be frozen and seized - **Property liens** — a lien on your home, car, or other assets that complicates selling or refinancing The IRS also uses automated third-party matching — comparing W-2s, 1099s, and other information returns against filed tax returns — to flag missing filings without needing a human to open a case. ## The Collection Clock Never Starts If You Never File One of the most persistent myths about skipping a return is that the IRS eventually gives up. The IRS generally has 10 years to collect an assessed tax debt (the Collection Statute Expiration Date, or CSED) — but that clock only starts once a return is filed or the IRS assesses the tax on your behalf. If you never file, there’s no CSED running. The IRS can come after you at any point in the future, with penalties and interest compounding the entire time. *[Subscribe here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) and I’ll flag it when filing thresholds or these penalty rules change.* ## Two Worked Examples **Example 1 — Priya, single, $22,000 in wages, one child.** Priya’s income is above the $15,750 single threshold, so she’s required to file. She’s also eligible for a meaningful EITC and the Child Tax Credit. If she skips filing thinking her income is “too low to matter,” she loses both the refund from her withholding and a credit that could be worth several thousand dollars — plus she’s now exposed to the failure-to-file penalty on any balance due. **Example 2 — Marcus, self-employed graphic designer, $9,000 in net freelance income.** Marcus is well under the $15,750 single filing threshold, but self-employment income has its own $400 trigger — he’s required to file and pay self-employment tax regardless of his total income being low. ## Common Issues to Watch Out For I get versions of this question every year, and the same misunderstandings come up: - **Assuming low or no income means no need to file.** It often means the opposite — that’s exactly when refundable credits are most valuable, and skipping the return skips the payment. - **Confusing the failure-to-file and failure-to-pay penalties.** They’re not the same size. If you can’t pay, file anyway — the penalty for not filing is far worse. - **Self-employed filers ignoring the $400 threshold.** Side income and gig work can trigger a filing requirement well below the standard thresholds. - **Thinking an old unfiled year eventually disappears.** It doesn’t — the 10-year collection clock never starts without a filed return. - **Waiting past 3 years to claim a refund.** After that window, the money legally becomes the Treasury’s, not yours. ## Looking Ahead: 2027 Filing Thresholds The IRS typically releases the following year’s inflation adjustments — including the standard deduction that the filing thresholds are built from — in October or November. I’d expect modest increases of roughly 2-3% over the 2026 figures above, consistent with recent inflation trends, with the official numbers landing in the IRS’s fall 2026 Revenue Procedure. The bigger question for 2027 is enforcement capacity: if IRS staffing stays reduced, expect more reliance on automated income matching to catch non-filers rather than traditional audits — meaning skipping a required return remains risky even with a smaller IRS workforce. I’ll update this page as the 2027 figures and enforcement posture become clear. **Related reading:** - [Earned Income Tax Credit (EITC) income limits and qualification rules](https://savingtoinvest.com/earned-income-tax-credit-eitc-qualification-and-income-threshold-limits/) - [Child Tax Credit (CTC) and Kiddie Tax thresholds](https://savingtoinvest.com/child-and-kiddie-tax-credit-and-income-thresholds/) - [Best online tax filing software and free filing options](https://savingtoinvest.com/the-best-tax-software-and-free-filing-options-as-tax-filing-goes-primarily-online/) Frequently Asked Questions QWhat is the minimum income to file taxes in 2025? AFor tax year 2025 (returns filed by April 2026), you must file if your gross income is at least $15,750 as a single filer under 65, $31,500 married filing jointly with both spouses under 65, or $23,625 as head of household under 65. Self-employed individuals must file with just $400 or more in net earnings, regardless of these thresholds. QWhat happens if you don't file a tax return? AYou risk a failure-to-file penalty of 5% of unpaid tax per month (up to 25%), plus a separate failure-to-pay penalty and daily-compounding interest. The IRS can also pursue wage garnishment, bank levies, and property liens. If you're due a refund, it's forfeited to the Treasury after 3 years. QCan I still get a refund if I file late? AYes, but only within 3 years of the original filing deadline. After that window, any refund you were owed becomes the property of the U.S. Treasury and cannot be claimed. QDo I need to file taxes if I made very little money? AYou may not be legally required to if your income is below the threshold for your filing status, but filing can still be worth it - refundable credits like the Earned Income Tax Credit and the Child Tax Credit are only paid out through a filed tax return, even if you owe no tax. QHow long can the IRS collect unpaid taxes if I never file? AIndefinitely. The IRS's standard 10-year collection window (the Collection Statute Expiration Date) only begins once a return is filed or the IRS assesses the tax itself. Without a filed return, that clock never starts. QIs the failure-to-file penalty worse than the failure-to-pay penalty? AYes, significantly. The failure-to-file penalty is 5% of unpaid tax per month, versus 0.5% per month for failure-to-pay - ten times as steep. If you can't afford to pay your tax bill, file your return anyway to avoid the larger penalty. QWhat credits do I lose by not filing a tax return? AThe Earned Income Tax Credit (up to $8,231 for 2026), the refundable portion of the Child Tax Credit, education credits like the American Opportunity Credit, and any refund of tax already withheld from your paychecks all require a filed return to claim. **Categories:** Taxes and Retirement --- ### [2026 Alternative Minimum Tax (AMT) Exemption and Phase-Out Amounts — Why the OBBB Pulls More High Earners Back In](https://savingtoinvest.com/alternative-minimum-tax-amt-and-exemption-amounts/) **Published:** July 11, 2011 **Author:** Andy **Content:** ### Key Takeaways - The 2026 AMT exemption is $90,100 (single), $140,200 (married filing jointly), and $70,100 (married filing separately), per IRS inflation adjustments under the OBBB - The exemption phase-out now starts at $500,000 of alternative minimum taxable income for singles and $1,000,000 for joint filers - down from $626,350 and $1,252,700 in 2025 - The phase-out rate doubled from 25% to 50%, so the exemption disappears twice as fast: fully gone at $680,200 (single) and $1,280,400 (joint) in 2026 - AMT rates remain 26% and 28%, with the 28% rate applying above $244,500 of excess AMTI in 2026 - Big AMT triggers to watch: exercising incentive stock options (ISOs), large capital gains, and high state/local tax situations - If your income is anywhere near $500K (single) or $1M (joint), model your 2026 taxes now - quarterly estimated payments may need adjusting The 2026 AMT exemption is $90,100 for single filers and $140,200 for married couples filing jointly — but the bigger story is the phase-out. Under the One Big Beautiful Bill (OBBB), the income levels where the exemption starts disappearing dropped sharply to $500,000 (single) and $1,000,000 (joint), and the exemption now phases out twice as fast. The practical effect: households in the roughly $500,000 to $1.3 million income range who haven’t thought about the Alternative Minimum Tax in years may owe it again for tax year 2026. If that’s you (or might be), this is the year to run the numbers before December, not at filing time. The AMT is a parallel tax system that makes higher-income taxpayers calculate their tax bill twice — once under the ordinary income tax rules and again under AMT rules — and pay the higher amount. Fortunately most online tax software does the dual calculation for you. Covered in this Article: [Toggle](#) - [2026 AMT Thresholds and Exemptions (OBBB Rules)](#2026_AMT_Thresholds_and_Exemptions_OBBB_Rules) - [2025 and 2024 AMT Thresholds (For Comparison)](#2025_and_2024_AMT_Thresholds_For_Comparison) - [What Changed Under the One Big Beautiful Bill](#What_Changed_Under_the_One_Big_Beautiful_Bill) - [How the AMT Works](#How_the_AMT_Works) - [Signs You May Owe AMT](#Signs_You_May_Owe_AMT) - [Two Worked Examples for 2026](#Two_Worked_Examples_for_2026) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [How Can I Avoid the AMT?](#How_Can_I_Avoid_the_AMT) - [Looking Ahead: 2027 AMT Outlook](#Looking_Ahead_2027_AMT_Outlook) ## 2026 AMT Thresholds and Exemptions (OBBB Rules) Here are the IRS inflation-adjusted AMT amounts for tax year 2026 (returns filed in early 2027), reflecting the OBBB changes. See [IRS Topic 556](https://www.irs.gov/taxtopics/tc556) for the official overview. Filing StatusAMT Exemption Amount28% Rate Applies Above (Excess AMTI)Exemption Phase-out Range (AMTI)Single/Unmarried$90,100$244,500$500,000 to $680,200Married Filing Jointly / Surviving Spouses$140,200$244,500$1,000,000 to $1,280,400Married Filing Separately$70,100$122,250$500,000 to $640,200 ## 2025 and 2024 AMT Thresholds (For Comparison) Filing StatusAMT Exemption Amount28% Rate ThresholdExemption Phase-out Range**2025** Single/Unmarried$88,100$239,100$626,350 to $978,750**2025** Married Filing Jointly$137,000$239,100$1,252,700 to $1,800,700**2025** Married Filing Separately$68,650$119,550$626,350 to $900,350**2025** Estates and Trusts$30,700$239,100$99,700 to $222,500**2024** Single/Unmarried$85,700$232,600$609,350 to $952,150**2024** Married Filing Jointly$133,500$232,600$1,218,700 to $1,751,900**2024** Married Filing Separately$66,650$116,300$609,350 to $875,950**2024** Estates and Trusts$29,900$232,600$99,700 to $219,300 Notice the pattern: exemption amounts kept rising with inflation, but the 2026 phase-out thresholds *fell* by more than $120,000 (single) and $250,000 (joint). That’s the OBBB returning the phase-out to its pre-2018-style structure — and it’s why the AMT is relevant again for a group of taxpayers who’d stopped worrying about it. ## What Changed Under the One Big Beautiful Bill The One Big Beautiful Bill (OBBB) made the higher TCJA-era AMT exemption amounts permanent — that’s the good news. Without it, the exemptions would have snapped back to much lower pre-2018 levels for everyone. The trade-off came in the phase-out mechanics, effective in 2026: the phase-out thresholds reset to $500,000 (single) and $1,000,000 (joint), indexed for inflation going forward, and the phase-out rate accelerated from 25 cents to **50 cents of exemption lost per dollar of AMTI** above the threshold. That 50% phase-out creates a nasty effective marginal rate zone. Inside the phase-out range, each extra dollar of income costs you a dollar of tax on itself *plus* wipes out 50 cents of exemption — pushing effective marginal rates as high as the low-40s percent for income in that band. *Tax rules like this get tweaked every year, and I’ll update this page when the IRS releases new figures — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/).* ## How the AMT Works The AMT has two rates: **26% and 28%**. In 2026, the 28% rate applies to excess alternative minimum taxable income (AMTI) above $244,500 ($122,250 for married filing separately). In contrast, regular tax rates run from 10% to 37%. The catch is the base. Under AMT rules, a host of deductions available under the normal tax rules are added back — most notably the state and local tax (SALT) deduction. With the OBBB temporarily raising the SALT cap, high-tax-state filers claiming the bigger deduction are exactly the people the AMT add-back hits. Your [AGI and taxable income](https://savingtoinvest.com/figuring-your-irs-taxable-income-adjustable-gross-income-agi-vs-modified-adjustable-gross-income-magi/) are the starting point, but AMTI is its own calculation. You calculate tax both ways and pay the higher amount. In reality, the only way to know if you owe AMT is to do your taxes twice — once under AMT rules and once under standard rules. I recommend good [tax software](https://savingtoinvest.com/filing-your-taxes-d-i-y-taxation/), or an accountant if your return is complicated, since Form 6251 does this automatically. ## Signs You May Owe AMT Before you dig into the exemption math, a quick gut check I give readers every year. If two or three of these apply to you, budget time to run the AMT calculation before you file: 1. **Your AMTI falls inside or above the phase-out range** — $500,000+ as a single filer, $1,000,000+ joint. This is where the OBBB’s steeper phase-out does the most damage. 2. **You claim a large state and local tax (SALT) deduction.** SALT is fully disallowed under AMT rules regardless of what you claim under regular tax — the bigger your SALT write-off, the bigger the AMT add-back. 3. **You exercised in-the-money incentive stock options (ISOs).** The bargain element — the gap between exercise price and market value — isn’t taxable income under regular rules until you sell, but it counts immediately under AMT. 4. **You have several dependents.** A household with four or more personal/dependent exemptions used to be a classic AMT trigger. It matters less post-TCJA, but it still shows up in edge cases with complex family situations. 5. **You have a large home equity loan deduction.** AMT rules only allow the interest deduction if loan proceeds went toward buying, building, or improving your home — not general home-equity borrowing. 6. **You have sizable miscellaneous itemized deductions** — unreimbursed employee expenses, investment fees, tax prep fees. These are disallowed entirely under AMT. 7. **You have business depreciation write-offs** on equipment, machinery, or furniture used in a sole proprietorship, partnership, LLC, or S-corp. AMT requires longer depreciation schedules, disallowing part of your regular deduction. 8. **You hold private activity bonds.** Interest that’s tax-free under regular rules is a taxable preference item under AMT. None of these guarantee you’ll owe AMT by itself — it depends on the full calculation — but stacking two or three of them is a strong signal to run Form 6251 (or let your tax software do it) before you file, not after. ## Two Worked Examples for 2026 **Example 1 — Mark, single, $450,000 AMTI.** Mark is below the $500,000 phase-out threshold, so he keeps his full $90,100 exemption. His AMT base is $359,900. The first $244,500 is taxed at 26% ($63,570) and the remaining $115,400 at 28% ($32,312), for a tentative AMT of about $95,882. If his regular tax bill is higher than that — likely at his income — he owes no AMT. Mark is fine. **Example 2 — Sarah and James, married filing jointly, $1,200,000 AMTI after exercising ISOs.** They’re $200,000 over the $1,000,000 threshold, so they lose $100,000 of their $140,200 exemption (50 cents per dollar), leaving $40,200. Their AMT base is $1,159,800, giving a tentative AMT of roughly $319,900. Under 2025 rules they would have kept their entire exemption (the old threshold was $1,252,700). The ISO exercise that was AMT-safe last year isn’t this year — this is the exact scenario to model before exercising. ## Common Issues to Watch Out For I get questions about the AMT every filing season, and the same mistakes come up: - **Exercising ISOs without modeling AMT first.** The paper gain on incentive stock options is an AMT preference item even if you don’t sell a single share. Post-OBBB, the safe exercise window is much smaller for high earners. - **Assuming the AMT is only a “rich person’s tax.”** Inside the new phase-out band ($500K–$680K single), effective marginal rates spike. Bonus income, large capital gains, or a one-time windfall can push you in unexpectedly. - **Forgetting the AMT credit.** If you pay AMT because of timing items (like ISOs), you may earn a minimum tax credit you can use against regular tax in future years — many filers never claim it (Form 8801). - **Not adjusting estimated taxes.** If the new phase-out catches you, your quarterly estimates based on 2025 rules will come up short, potentially triggering underpayment penalties. - **Married filing separately surprises.** MFS filers hit the phase-out at the same $500,000 as singles but with a smaller exemption — one more reason to compare filing statuses carefully. ## How Can I Avoid the AMT? The realistic truth is that it’s difficult — the AMT is designed to be hard to plan around. But there are levers: timing ISO exercises across multiple years (and modeling each tranche), managing the recognition of large capital gains, being deliberate about the timing of deductions that are added back under AMT rules, and maximizing pre-tax retirement contributions, which reduce both regular taxable income and AMTI. For a broader set of year-end moves that interact with the AMT, see the [tax and financial planning playbook](https://savingtoinvest.com/tax-and-financial-planning-playbook/). ## Looking Ahead: 2027 AMT Outlook The 2027 AMT figures will be set by the IRS in its annual inflation adjustments, typically released in October or November 2026. Based on recent inflation trends (2–3%), I’d expect the exemption to land around $92,000–$92,500 for singles and $143,000–$144,000 for joint filers, with the phase-out thresholds indexed up modestly from $500,000/$1,000,000. The structural OBBB changes — the lower thresholds and 50% phase-out rate — are permanent law, so barring new legislation, the “AMT is back” reality is here to stay. These are projections, not official numbers; I’ll update this page when the IRS releases the 2027 figures. **Related reading:** - [The tax and financial planning playbook for 2026–2027](https://savingtoinvest.com/tax-and-financial-planning-playbook/) - [AGI vs. MAGI: figuring your IRS taxable income](https://savingtoinvest.com/figuring-your-irs-taxable-income-adjustable-gross-income-agi-vs-modified-adjustable-gross-income-magi/) - [DIY tax software or a professional preparer?](https://savingtoinvest.com/filing-your-taxes-d-i-y-taxation/) Frequently Asked Questions QWhat are the AMT exemption amounts for 2026? AFor tax year 2026, the AMT exemption is $90,100 for single filers, $140,200 for married couples filing jointly, and $70,100 for married individuals filing separately. These amounts phase out at higher incomes under the new OBBB rules. QAt what income does the AMT exemption phase out in 2026? AThe exemption begins phasing out at $500,000 of alternative minimum taxable income for single filers and $1,000,000 for joint filers. It phases out at 50 cents per dollar, fully disappearing at $680,200 (single) and $1,280,400 (joint). QWhat did the One Big Beautiful Bill change about the AMT? AThe OBBB made the higher TCJA exemption amounts permanent but lowered the phase-out thresholds to $500,000 (single) and $1,000,000 (joint) starting in 2026, and doubled the phase-out rate from 25% to 50%. This pulls more households in the $500K-$1.3M income range back into the AMT. QWhat are the AMT tax rates for 2026? AThe AMT has two rates: 26% and 28%. In 2026, the 28% rate applies to alternative minimum taxable income above $244,500 after the exemption ($122,250 for married filing separately). QWhat commonly triggers the AMT? AThe most common triggers are exercising incentive stock options (the paper gain counts for AMT even without selling), large capital gains, high state and local tax deductions being added back, and incomes inside the exemption phase-out range. QWhat are common signs I might owe the AMT? ACommon red flags include AMTI near or above the phase-out threshold ($500,000 single, $1,000,000 joint), a large state and local tax deduction, exercising incentive stock options, sizable miscellaneous itemized deductions, business depreciation write-offs, and holding private activity bonds. Two or three of these together are a strong signal to run the AMT calculation before filing. QHow do I know if I owe the AMT? AYou must calculate your tax twice - once under regular rules and once under AMT rules (Form 6251) - and pay the higher amount. Reputable tax software does this automatically, which is the easiest way to check. **Categories:** Taxes and Retirement **Tags:** 2012, 2013, AMT, Deductions, exemptions, income, IRS, taxes --- ### [Trump Accounts Are Now Live — How to Claim the $1,000 Baby Bonus in 2026 and Open Your Child's Account](https://savingtoinvest.com/trump-accounts-creating-a-generation-of-savers-with-the-1000-american-baby-bonus/) **Published:** July 14, 2025 **Author:** Andy **Content:** ### Key Takeaways - Trump Accounts went live July 4, 2026 - open one at trumpaccounts.gov or via IRS Form 4547 with your tax year 2025 return - Children born 2025 through 2028 get a one-time $1,000 Treasury contribution; the Social Security Administration is rolling out automatic enrollment when newborns get their SSN at birth registration - Families and others can contribute up to $5,000 per year (indexed for inflation); employers can add up to $2,500 tax-free as a dependent benefit - Funds must be invested in U.S. equity index funds charging 0.10% or less - growth is tax-deferred - Withdrawals of earnings for qualified uses (education, first home, small business) get capital gains treatment; non-qualified withdrawals face ordinary income tax and a possible 10% penalty - Watch for scams: official communication comes only from no-reply@trumpaccounts.treasury.gov - type TrumpAccounts.gov directly rather than clicking links Trump Accounts officially launched on July 4, 2026 — parents can now open an account at trumpaccounts.gov or by filing IRS Form 4547 (Trump Account Election) with their tax year 2025 return. Babies born from January 1, 2025 through December 31, 2028 qualify for a one-time $1,000 contribution from the U.S. Treasury to kick-start the account. The response has been immediate: per the [IRS](https://www.irs.gov/newsroom/4-million-children-have-been-signed-up-for-trump-accounts-with-1-million-claiming-the-1000-pilot-program-contribution), roughly 4 million children have already been signed up, with about 1 million claiming the $1,000 pilot program contribution in the first wave. These tax-deferred investment accounts were created under Trump’s One Big Beautiful Bill (OBBB) and are designed specifically for children under 18, aiming to put the power of compound growth to work from birth. Below I cover how to enroll, how the money must be invested, the tax rules, and how these accounts stack up against 529s and custodial Roth IRAs. Covered in this Article: [Toggle](#) - [How to Open a Trump Account and Claim the $1,000](#How_to_Open_a_Trump_Account_and_Claim_the_1000) - [Contribution Rules](#Contribution_Rules) - [How the Money Must Be Invested](#How_the_Money_Must_Be_Invested) - [Tax Treatment: The Fine Print That Matters](#Tax_Treatment_The_Fine_Print_That_Matters) - [Trump Account vs. 529 vs. Custodial Roth IRA](#Trump_Account_vs_529_vs_Custodial_Roth_IRA) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) ## How to Open a Trump Account and Claim the $1,000 As of the July 4 launch there are three paths: 1. **Online:** Sign up at trumpaccounts.gov (type the address directly into your browser). You’ll need your child’s Social Security number and your own identity verification. 2. **With your tax return:** File **IRS Form 4547, Trump Account Election(s)**, to request establishment of an account and enroll in the pilot program — parents can do this with their tax year 2025 return, including on extension. 3. **Automatically:** The Social Security Administration is launching automated enrollment for newborns when parents request an SSN during birth registration. And if parents take no action at all, the Treasury will automatically create and fund an account when an eligible child is claimed on a tax return. The $1,000 pilot contribution applies to eligible children born January 1, 2025 through December 31, 2028. Children under 18 who fall outside those birth years can still have a Trump Account opened for them — they just don’t get the federal seed money. Private banks and brokerages will act as custodians and manage the accounts. For now, all official communication comes via email from **no-reply@trumpaccounts.treasury.gov**. Given how fast [AI-powered scams](https://savingtoinvest.com/10-free-ways-to-use-ai-for-personal-finances-with-sample-prompts/) are evolving, treat any other “Trump Account” email, text, or call as suspect — always access the account through the official app or by typing TrumpAccounts.gov directly. ## Contribution Rules Beyond the initial federal seeding, the accounts permit additional contributions from parents, guardians, relatives, and friends of up to **$5,000 annually** (indexed for inflation). Employers can contribute up to **$2,500 per year** (indexed) on a tax-free basis to employees’ dependents’ accounts — an emerging fringe benefit worth asking your HR department about. Employer contributions count toward the $5,000 overall cap, and amounts above the $2,500 employer limit are treated as taxable income to the employee. Nonprofit organizations and governmental entities can also contribute additional amounts that don’t count against the $5,000 annual limit. **Example:** Sarah and Mike’s daughter was born in March 2026. They enroll at trumpaccounts.gov and receive the $1,000 Treasury contribution. They add $200/month ($2,400/year) and Mike’s employer contributes $2,500 through its new benefits program. At a 7% average annual return, the account would grow to roughly $170,000 by the time their daughter turns 18 — before she’s earned a paycheck. *This program is brand new and the rules are still being refined by Treasury — I’ll update this page as guidance lands. [Subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/).* ## How the Money Must Be Invested Investment options are deliberately simple. Funds must be invested in a broadly diversified [U.S. stock index fund](https://savingtoinvest.com/simpler-and-smarter-investing-with-a-3-index-fund-portfolio-choosing-between-vanguard-and-fidelity-equity-funds/) with an expense ratio of **10 basis points (0.10%) or less**. This promotes stable, low-cost growth through proven market indexes. In practice that means funds like an S&P 500 index fund (e.g. VOO, IVV) or a total U.S. market fund (e.g. VTI) — the exact menu depends on which custodian holds the account. There’s no picking individual stocks, no crypto, and no bond allocation: these are long-horizon equity accounts by design. ## Tax Treatment: The Fine Print That Matters Contributions are made with after-tax dollars and are not federally deductible (unlike some state [529 plan contributions](https://savingtoinvest.com/how-to-choose-a-529-plan-and-pay-now-for-future-college-costs-contribution-limits-fees-and-tax-rules/)). Growth inside the account is tax-deferred — no annual taxes on gains or dividends. The tax treatment of withdrawals is the critical distinction: - **Qualified uses** — higher education expenses, a first-time home purchase, or small business/farm loans taken by the beneficiary — get **capital gains rates** on the earnings. - **Non-qualified withdrawals** are taxed as **ordinary income** and can face an additional **10% penalty**, particularly for distributions before qualified milestones (generally applying to non-qualified distributions to beneficiaries under age 31). - Distributions generally can’t be taken before the beneficiary turns 18. Structurally these work like a traditional IRA (Section 408(a)) with a child-specific overlay — which is why comparing them against other vehicles matters before you commit serious money beyond the free $1,000. ## Trump Account vs. 529 vs. Custodial Roth IRA - **529 plans** still win for dedicated college savings: tax-free (not just deferred) withdrawals for qualified education costs, plus state tax deductions in many states. - **Custodial Roth IRAs** win once your child has earned income: after-tax contributions but fully tax-free qualified growth. - **Trump Accounts** win on the free $1,000 (take it — it’s automatic money), the employer contribution channel, and flexibility for non-college paths like a first home or starting a business. My take: claim the $1,000 for every eligible child, capture any employer match-style contribution, then weigh additional dollars against a 529 or custodial Roth depending on your goals. If you’re planning for a growing family, I cover the broader math in [can you afford to start a family](https://savingtoinvest.com/can-you-afford-to-start-a-family-important-financial-questions-to-consider/). ## Common Issues to Watch Out For A few gotchas I’m already seeing questions about: - **Assuming you must act to get the $1,000.** If your eligible child is claimed on your tax return, Treasury will eventually auto-create the account. Enrolling proactively just gets the money invested sooner. - **Confusing tax-deferred with tax-free.** Earnings are taxed on withdrawal — at capital gains rates only if used for qualified purposes. This is not a 529. - **Over-contributing across relatives.** The $5,000 annual cap covers combined contributions from family and friends (plus employer amounts). Coordinate with grandparents to avoid excess contributions. - **Phishing.** New federal program plus money for babies equals scammer paradise. Official email comes only from no-reply@trumpaccounts.treasury.gov, and no one from the program will call asking for banking details. - **Missing birth-year eligibility edges.** The $1,000 applies to births from January 1, 2025 through December 31, 2028. A child born December 2024 can have an account but gets no federal seed. ## Looking Ahead: 2027 Outlook Several things I’m watching as this program matures. Treasury and the IRS are expected to issue further regulations on custodian requirements and the qualified-use definitions — the details on home purchase and small business withdrawals still need fleshing out. The $5,000 and $2,500 contribution limits get their first inflation indexing for 2027 (official figures typically land in the October/November IRS adjustments). And watch whether employers actually adopt the $2,500 dependent benefit at scale — early benefits-industry chatter suggests uptake will be a 2027 open-enrollment story. I’ll update this page as each milestone hits. **Related reading:** - [Can you afford to start a family? Important financial questions](https://savingtoinvest.com/can-you-afford-to-start-a-family-important-financial-questions-to-consider/) - [How to choose a 529 plan](https://savingtoinvest.com/how-to-choose-a-529-plan-and-pay-now-for-future-college-costs-contribution-limits-fees-and-tax-rules/) - [Traditional IRA vs. Roth IRA contribution and income limits](https://savingtoinvest.com/traditional-ira-versus-roth-ira-contribution-and-phase-out-income-limits/) Frequently Asked Questions QHow do I open a Trump Account for my child? AAs of July 4, 2026, you can enroll at trumpaccounts.gov, file IRS Form 4547 (Trump Account Election) with your tax year 2025 return, or wait for automatic enrollment - the SSA is adding enrollment to newborn SSN registration, and Treasury will auto-create accounts for eligible children claimed on tax returns. QWho gets the $1,000 Trump Account contribution? AChildren born in the U.S. between January 1, 2025 and December 31, 2028 receive a one-time $1,000 contribution from the Treasury under the pilot program. Other children under 18 can have accounts opened for them but don't receive the federal seed money. QHow much can be contributed to a Trump Account each year? AUp to $5,000 per year total (indexed for inflation) from parents, relatives, and friends. Employers can contribute up to $2,500 per year tax-free as a dependent benefit, which counts toward the $5,000 cap. Nonprofit and government contributions don't count against the cap. QWhat can Trump Account funds be invested in? AFunds must be invested in broadly diversified U.S. equity index funds with expense ratios of 0.10% or less - think S&P 500 or total market index funds. Individual stocks, crypto, and bonds are not permitted. QAre Trump Account withdrawals taxed? AYes. Growth is tax-deferred, and earnings withdrawn for qualified purposes (higher education, first home, small business/farm loans) are taxed at capital gains rates. Non-qualified withdrawals are taxed as ordinary income and may face a 10% penalty. QIs a Trump Account better than a 529 plan? AThey serve different goals. 529s offer tax-free withdrawals for education and often state tax deductions. Trump Accounts offer the free $1,000, employer contributions, and flexibility for non-college uses. Most families should claim the $1,000, then direct additional savings based on their goals. QHow do I avoid Trump Account scams? AOfficial communication comes only from no-reply@trumpaccounts.treasury.gov. Always type TrumpAccounts.gov directly into your browser or use the official app. No legitimate representative will call, text, or email asking for your banking details or your child's SSN. **Categories:** Taxes and Retirement --- ### [IRS 60-Day Review Letters (2645C and CP05) — Why Your 2026 Refund Is Delayed and How to Get Help](https://savingtoinvest.com/i-got-a-need-an-additional-60-day-review-letter-from-the-irs/) **Published:** April 13, 2022 **Author:** Andy **Content:** ### Key Takeaways - A 'we need an additional 60 days' letter (usually Letter 2645C) means your return was pulled for manual review - often for income verification, credit verification, or information the IRS systems couldn't automatically match - The IRS can and does send multiple 60-day letters in a row; each one restarts the clock - Check your free IRS tax transcript for codes 570 (hold) and 971 (notice issued) to see where your return actually stands - If a follow-up letter (CP05 or 4464C) asks for documents, respond quickly - the review clock doesn't really start until the IRS has what it needs - If it's been more than 60 days past the letter's timeframe, call the IRS at 800-829-1040, then escalate to the Taxpayer Advocate Service (877-777-4778) if you're facing financial hardship - Contacting your local Congressional representative has produced real movement for many readers within 1-2 weeks If the IRS sent you a letter saying it needs “an additional 60 days” to review your tax return, you’re not alone — and unfortunately, that letter often isn’t the last one. Many filers get two or three of these notices back to back, each one extending the wait for their refund with no real explanation. In this article I’ll go through what’s behind the 60-day notice, how to find out what’s actually holding up your return, and the escalation paths that have worked for readers when the standard “just wait” answer isn’t good enough. With IRS staffing down again in 2026 and only about 21% of filing-season calls reaching a live agent (per the National Taxpayer Advocate’s June 2026 report), knowing the right path matters more than it used to. Covered in this Article: [Toggle](#) - [Why the Delay?](#Why_the_Delay) - [How to Find Out What’s Actually Going On](#How_to_Find_Out_Whats_Actually_Going_On) - [Who Can I Contact at the IRS for Help?](#Who_Can_I_Contact_at_the_IRS_for_Help) - [Escalation Path 1: The Taxpayer Advocate Service](#Escalation_Path_1_The_Taxpayer_Advocate_Service) - [Escalation Path 2: Your Congressional Representative](#Escalation_Path_2_Your_Congressional_Representative) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027 Filing Season](#Looking_Ahead_2027_Filing_Season) ## Why the Delay? While the delay could simply reflect IRS processing backlogs — which have worsened as staffing cuts continue through 2026 — the more likely reason is that your return got [flagged for additional processing](https://savingtoinvest.com/latest-update-on-your-irs-tax-refund-processing-and-payment-status-how-returns-with-errors-are-handled/) due to missing or incorrect information the IRS systems cannot automatically reconcile. This pushes your return to the IRS “error resolution” department for manual review, which is then subject to the limited availability of their examiners. With fewer examiners on staff this year, these queues are moving slower than in 2025. Common triggers I see over and over in reader comments: wage or withholding amounts that don’t match employer W-2/1099 filings, Earned Income Tax Credit or Child Tax Credit claims that need verification, identity verification flags, and amended or late-filed returns, which the IRS is legally allowed to take extra review time on. You will get an initial IRS notice stating the additional delay (e.g. a **Letter 2645C**) and extra time for the IRS to review and respond — normally 60 days. If they need something from you, they will send a follow-up letter ([e.g. CP05](https://savingtoinvest.com/what-is-a-cp05-tax-notice-and-should-i-worry-when-i-get-this-letter-from-the-irs-around-my-tax-return-and-refund-payment/) or 4464C) that will provide more details and actions to take. So it’s important you closely monitor and action any correspondence from the IRS. You may then get yet another 2645C letter, saying another 60 days is needed. The cycle repeats until the IRS completes processing or requests more information. Frustrating, but knowing the pattern helps you plan. Here’s what readers have said over the years, which you can probably relate to: > *(Joanne)* The first \[IRS\] letter stated my refund was under review with absolutely no other explanation. Then 2 months later I received a letter stating they needed an additional 60 days. Now the other day I received another letter saying they needed another additional 60 days. > *(Tom)* I think I’ve received 3 different IRS letters in the mail saying that they need 60 more days to process it. I am so upset and defeated. I need my money. ## How to Find Out What’s Actually Going On You should always be on the lookout for formal IRS [letters and notices](https://savingtoinvest.com/should-i-be-worried-if-i-get-an-irs-notice-or-letter-will-it-affect-my-tax-return-processing-or-refund-payment/) explaining why your tax return is facing delays. Also review your return for mistakes, and if you have an accountant or tax preparer, talk to them. But the single most useful free tool is your IRS account transcript. Your [tax transcript](https://savingtoinvest.com/will-ordering-an-irs-tax-transcript-help-me-find-out-when-ill-get-my-refund/) and [processing cycle codes](https://savingtoinvest.com/irs-refund-cycle-code-and-dates-using-tax-transcript-to-get-master-file-information-for-your-direct-deposit-date/) can show where the IRS is with your return. The two codes to look for with a 60-day review are [570 (additional account action pending) and 971 (notice issued)](https://savingtoinvest.com/what-is-tax-code-tc-570-on-my-irs-transcript-and-will-it-delay-my-refund-account-freeze-or-additional-account-actions-pending/). When the hold releases, you’ll see code 846 (refund issued) with a payment date. While the transcript won’t give you a guaranteed refund date, it updates faster than the letters arrive — many readers see the 846 code days before any final letter shows up. Note that Where’s My Refund will often just show “[Return Processing Has Been Delayed Beyond The Normal Timeframe](https://savingtoinvest.com/refund-status-return-processing-has-been-delayed-beyond-the-normal-timeframe/)” during this whole stretch, which tells you nothing new. *Things can shift during the year as IRS staffing and backlogs evolve. I’ll update this page when new information comes in — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/).* ## Who Can I Contact at the IRS for Help? You can try calling the IRS, but [getting a live agent is a challenge](https://savingtoinvest.com/how-can-i-actually-speak-to-a-real-person-or-agent-at-the-irs-phone-numbers-that-work/) — during the 2026 filing season the average hold was 14 minutes and fewer than 1 in 4 calls got through at all. And even when you do reach someone, the most likely response is that your return is processing and to wait for a formal update. That said, there’s one situation where calling is clearly worth it: **if it’s been more than 60 days** since the date on your letter with no updated notice or refund, call **800-829-1040** and ask the agent to check for any hold codes or requests you may have missed. A few tips that improve your odds: call right at 7am local time, avoid Mondays and Tuesdays, and take the callback option if offered. ## Escalation Path 1: The Taxpayer Advocate Service If the IRS has blown past its own timeline, or the delay is causing genuine financial hardship (rent, utilities, medical bills), [contact the Taxpayer Advocate Service (TAS)](https://savingtoinvest.com/contact-a-tax-advocate-to-help-get-your-refund-released-from-the-irs/) at 877-777-4778. TAS is free and independent of the IRS. An advocate can pull your return, identify the specific hold, and often move a stuck return in 1–2 weeks when the standard answer would be another 60-day wait. You can also ask any IRS phone agent to submit Form 911 (TAS assistance request) on your behalf. ## Escalation Path 2: Your Congressional Representative This method has helped many readers see real movement on their refund within 1 to 2 weeks of making contact. Find your local Congressional contact by searching “\[your zip code\] Congress Representative taxes help.” You’ll be taken to a webpage with contact details or a submission form. Don’t submit sensitive documents through the initial web form — just explain your issue and ask for a secure portal if documents are needed. Once they have your information, a staff liaison will be assigned and will likely have you sign a privacy release (with your spouse if you filed jointly) so they can inquire with the IRS on your behalf. Congressional inquiries get routed to dedicated IRS liaison units, which is why they tend to get answered faster than taxpayer calls. Even if they can’t get your money faster, they can usually confirm what is holding up your return — which for most readers is half the battle. ## Common Issues to Watch Out For I get questions about these constantly, so a few gotchas worth flagging: - **Ignoring the follow-up letter.** If a CP05 or 4464C asks for pay stubs or W-2 verification and you don’t respond, the review effectively stalls indefinitely. Respond fast, and use the IRS Document Upload Tool rather than mail if the letter allows it. - **Assuming the 60 days is a promise.** It’s not a deadline the IRS holds itself to — it’s a legal buffer. Track the date yourself and act the day it passes. - **Filing a duplicate return out of frustration.** Don’t. A second return almost always makes the delay worse by triggering duplicate-filing checks. - **Paying someone to “release” your refund.** Nobody — no tax pro, no service — can force the IRS to release a refund under review. TAS is free; anyone charging for advocate services is a red flag. - **Missing the interest silver lining.** If the IRS takes more than 45 days past the filing deadline to pay your refund, it owes you interest (taxable, but still yours). ## Looking Ahead: 2027 Filing Season I’m watching two things that will shape how common these letters are next year. First, IRS staffing: the National Taxpayer Advocate has warned that if current levels hold, 2027 filing season service could be worse than 2026’s, which likely means more manual-review queues, not fewer. Second, verification automation: the IRS continues expanding document upload and online verification tools, which should shorten some review cycles for filers who respond digitally. I’ll update this page as the 2027 season approaches and new data lands. [Subscribe here to stay current.](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) **Related reading:** - [Why is it taking so long to get my tax refund?](https://savingtoinvest.com/why-is-it-taking-so-long-to-get-my-tax-refund/) - [IRS transcript codes 570 and 971 explained](https://savingtoinvest.com/what-is-tax-code-tc-570-on-my-irs-transcript-and-will-it-delay-my-refund-account-freeze-or-additional-account-actions-pending/) - [What is a CP05 notice and should I worry?](https://savingtoinvest.com/what-is-a-cp05-tax-notice-and-should-i-worry-when-i-get-this-letter-from-the-irs-around-my-tax-return-and-refund-payment/) - [How to reach a live IRS agent](https://savingtoinvest.com/how-can-i-actually-speak-to-a-real-person-or-agent-at-the-irs-phone-numbers-that-work/) Frequently Asked Questions QWhat does the IRS 'we need an additional 60 days' letter mean? AIt means your return was pulled for manual review - commonly for income or credit verification - and the IRS is giving itself another 60 days to complete it. The letter is usually a 2645C notice. It does not necessarily mean an audit or that you did anything wrong. QWhy did I get a second or third 60-day letter from the IRS? AThe IRS sends a new 2645C letter each time a review period ends without resolution, and each letter restarts the 60-day clock. This is common for returns in the error resolution or income verification queues, especially during years with reduced IRS staffing. QHow can I check what's holding up my refund during a 60-day review? APull your free IRS account transcript at irs.gov. Code 570 means a hold is on your account, 971 means a notice was issued, and 846 means your refund was approved with a payment date. The transcript usually updates before letters arrive. QShould I call the IRS about a 60-day review letter? AWait until the 60 days from the letter date have passed, then call 800-829-1040. Calling earlier typically gets you a generic 'still processing' answer. If you're facing financial hardship, contact the Taxpayer Advocate Service at 877-777-4778 instead - they can intervene sooner. QCan a Taxpayer Advocate speed up my delayed refund? AYes, in many cases. TAS is a free, independent service that can identify the specific hold on your return and often resolves stuck refunds in 1-2 weeks, particularly where there's financial hardship. You can also ask any IRS agent to file Form 911 to request TAS assistance. QDoes the IRS pay interest on refunds delayed by a 60-day review? AYes. If the IRS issues your refund more than 45 days after the filing deadline (or your filing date, if later), it must pay interest on the refund. The interest is taxable income in the year received. QWill contacting my Congressional representative help with an IRS delay? AOften, yes. Congressional offices have dedicated IRS liaison channels, and many readers report updates or refund movement within 1-2 weeks of opening a case. You'll need to sign a privacy release so the office can inquire on your behalf. **Categories:** Taxes and Retirement --- ### [2026–2027 Updates: Eight Things NOT to Do With Your 401(k) and IRA](https://savingtoinvest.com/what-not-to-do-with-your-401k-and-ira/) **Published:** November 13, 2009 **Author:** Andy **Content:** ### Key Takeaways - Never borrow from your 401(k) unless it's a last resort - the true cost includes lost compounding, double taxation on repayment, and a potential tax bomb if you leave your job. - Contributing only to the company match minimum is one of the most common retirement undersaving mistakes - aim for 12-15% of income including employer contributions. - Don't cash out when you change jobs. A direct rollover to an IRA or new employer plan avoids income taxes and the 10% early withdrawal penalty. - If you're aged 60-63, SECURE 2.0 gives you a super catch-up of $11,250 for 401(k) contributions in 2026 - many people are missing this entirely. - Stale or missing beneficiary designations on retirement accounts override your will - an ex-spouse or deceased parent listed as beneficiary gets the money regardless of what your estate plan says. Everyone who has a 401(k) or IRA has read the standard playbook: invest regularly, diversify, keep costs low. Good advice, all of it. But knowing what *not* to do is just as important — and some of the most expensive mistakes are the ones that feel reasonable in the moment. Here are eight of the biggest ones, updated for 2026. Covered in this Article: [Toggle](#) - [1. Borrowing From Your 401(k)](#1_Borrowing_From_Your_401k) - [2. Stopping at the Company Match](#2_Stopping_at_the_Company_Match) - [3. Chasing Hot-Performing Funds or Asset Classes](#3_Chasing_Hot-Performing_Funds_or_Asset_Classes) - [4. Being Too Conservative (Ignoring Inflation Risk)](#4_Being_Too_Conservative_Ignoring_Inflation_Risk) - [5. Cashing Out When You Leave an Employer](#5_Cashing_Out_When_You_Leave_an_Employer) - [6. Trying to Time the Market](#6_Trying_to_Time_the_Market) - [7. Missing the Ages 60–63 Super Catch-Up (New Under SECURE 2.0)](#7_Missing_the_Ages_60%E2%80%9363_Super_Catch-Up_New_Under_SECURE_20) - [8. Neglecting Beneficiary Designations](#8_Neglecting_Beneficiary_Designations) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027](#Looking_Ahead_2027) ## 1. Borrowing From Your 401(k) A 401(k) loan looks attractive: no credit check, reasonable interest rates, quick access. But the true cost is higher than it appears. You repay the loan with after-tax dollars — meaning that money gets taxed twice. Once when you earn it and use it to repay, and again when you withdraw it in retirement. Meanwhile, the money you borrowed stops compounding. The worst scenario: Jack had $50,000 in his 401(k) and borrowed $25,000 for a car. A month later he left his job. The outstanding loan balance became immediately due, and after required 20% withholding and automatic repayment, Jack got a check for $15,000 — then owed income taxes plus a 10% early withdrawal penalty on top. He ended up with under $10,000, a car, and no retirement savings. If you leave your employer with an outstanding 401(k) loan in 2026, you generally have until the tax filing deadline for that year (including extensions) to repay it or roll it into an IRA — or it becomes a taxable distribution. Explore every other option before touching your retirement account. ## 2. Stopping at the Company Match If your employer offers a match, contribute at least enough to capture it — that’s free money and there’s no excuse to leave it on the table. But stopping there is a mistake I see a lot. The match gets you to maybe 4–6% of income total. Most financial planners suggest 12–15% (including employer contributions) to maintain your standard of living in retirement. The gap between “I’m getting the match” and “I’m actually on track” is often larger than people realize, especially for workers who started late or had gaps in employment. If maxing out feels out of reach, increase by 1% each year — most people don’t notice the reduction in take-home pay after the first month. ## 3. Chasing Hot-Performing Funds or Asset Classes Every few years a new asset class becomes the obvious trade: tech stocks in 1999, real estate in 2006, crypto in 2021. The pattern is always the same — by the time something feels like a sure thing, most of the gain has already happened. In a 401(k) or IRA, chasing performance is especially costly because the tax-advantaged status doesn’t protect you from the timing risk. Pick a diversified mix of stocks, bonds, and short-term reserves appropriate for your timeline, and stick to it through market cycles. The evidence strongly favors boring and consistent over exciting and reactive. ## 4. Being Too Conservative (Ignoring Inflation Risk) The opposite mistake is just as damaging over a long time horizon. Parking everything in money market funds or stable value funds feels safe — but you’re trading the risk of losing money for the certainty of losing purchasing power. Over a 20- or 30-year retirement, inflation at even 2.5% per year cuts your purchasing power nearly in half. Stocks have historically outpaced inflation over long periods; bonds and cash haven’t, reliably. If your entire retirement account is in “safe” investments, reconsider the allocation — especially if you’re still 10+ years from retirement. ## 5. Cashing Out When You Leave an Employer This is the most expensive impulsive decision in personal finance. When you leave a job and get a check representing your 401(k) balance, it feels like found money. It isn’t. Cash out and you owe ordinary income taxes on the full amount plus a 10% early withdrawal penalty if you’re under 59½. On a $60,000 balance, that could easily cost $20,000+ in taxes and penalties. Do a direct rollover to a traditional IRA or your new employer’s plan instead — no taxes, no penalties, the money keeps compounding. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) — I’ll update this page when new 2027 limits and rules are released.* ## 6. Trying to Time the Market No one does this reliably. Not professional fund managers with Bloomberg terminals and teams of analysts, and not individual investors checking their 401(k) balance on their phone. Frequent in-and-out moves generate trading costs, potential tax drag (in taxable accounts), and almost always result in missing the best days — which tend to cluster right around the worst days. The single most powerful thing a 401(k) investor can do is automate contributions and not look at the balance during market downturns. Time in the market, not timing the market. ## 7. Missing the Ages 60–63 Super Catch-Up (New Under SECURE 2.0) This one is new and a lot of people are completely unaware of it. Starting in 2025, SECURE 2.0 created an enhanced catch-up contribution for savers aged 60, 61, 62, and 63. Instead of the standard $8,000 catch-up for those 50+, this group can contribute an additional **$11,250** to a 401(k), 403(b), or governmental 457 plan — bringing the 2026 total to **$35,750** ($24,500 base + $11,250). The window is specific: it only applies at exactly ages 60–63. At 64 you step back down to the $8,000 catch-up. If you’re in this window and haven’t checked whether your plan has enabled the super catch-up, call HR or your plan administrator now. Some smaller plans haven’t implemented it yet. See the [2026 401(k) catch-up contribution limits post](https://savingtoinvest.com/maximum-employee-and-employer-401k-contribution-limits-and-catch-up-amounts/) for the full breakdown. ## 8. Neglecting Beneficiary Designations Your 401(k) and IRA don’t pass through your will. They go directly to whoever is listed as the beneficiary on the account — and that designation overrides everything: your will, your trust, your verbal intentions. This becomes a real problem when designations are stale. An ex-spouse from a 1998 divorce, a parent who died a decade ago, or simply a blank form on file will create a mess — or worse, send your retirement assets somewhere you never intended. A minor listed as a primary beneficiary without a trust creates legal complications at the worst possible time. Review your beneficiaries any time there’s a major life event: marriage, divorce, birth, death. It takes five minutes in your plan portal or broker account. I’d also add a calendar reminder to check them every five years regardless of life changes — it’s that easy to overlook. ## Common Issues to Watch Out For A few patterns I’ve seen come up repeatedly: **Overlooking the Roth option inside your 401(k).** Many plans now offer a Roth 401(k), and most people default to traditional (pre-tax) without thinking about it. Whether Roth or traditional is better depends on your current vs. expected future tax rate — worth 10 minutes of thought rather than just accepting the default. **Letting auto-enrollment defaults stick.** Most employers enroll you at 3–4% by default. That’s a start, but far below where you should be. The auto-enrollment rate is designed to minimize opt-outs, not to actually fund your retirement. Override it. **Ignoring the fund expense ratios.** A 1% annual fee vs. a 0.05% index fund on a $200,000 balance over 20 years is a difference of roughly $60,000+. Check your expense ratios and favor low-cost index funds where available. ## Looking Ahead: 2027 The super catch-up amount ($11,250 in 2026) is indexed for inflation — expect a modest increase in 2027. The base 401(k) limit of $24,500 and IRA limit of $7,500 are also inflation-indexed and typically updated in October or November each year. I’ll update the dedicated contribution limits posts as soon as the IRS releases 2027 figures. No major structural rule changes are expected for 2027 — the SECURE 2.0 provisions are now in place and fully phased in. --- Frequently Asked Questions QWhat happens to my 401(k) loan if I lose my job? AIf you leave your employer (voluntarily or not) with an outstanding 401(k) loan, the balance becomes due. You generally have until the tax filing deadline for that year (including extensions) to repay it or roll the outstanding amount into an IRA. If you can't repay, the remaining balance is treated as a taxable distribution - you'll owe income tax on it, plus a 10% early withdrawal penalty if you're under 59½. QHow much should I be contributing to my 401(k) in 2026? AThe IRS maximum for 2026 is $24,500 (plus $8,000 catch-up if you're 50+, or $11,250 if you're aged 60-63). As a practical goal, aim for 12-15% of your gross income including any employer match. If that's not achievable right now, start where you can and increase by 1% per year. At minimum, always contribute enough to capture the full employer match. QIs it ever okay to cash out a 401(k)? AVery rarely. Cashing out triggers income taxes on the full amount plus a 10% penalty if you're under 59½ - on a $50,000 balance, that can easily cost $15,000-$20,000. The much better option is a direct rollover into an IRA or your new employer's plan, which preserves the balance and keeps it growing tax-deferred. The only situation where cashing out might be unavoidable is a genuine financial emergency with no other options. QWhat is the SECURE 2.0 super catch-up for ages 60-63? AUnder SECURE 2.0, workers aged 60, 61, 62, or 63 can contribute an extra $11,250 to a 401(k), 403(b), or governmental 457 plan in 2026 - instead of the standard $8,000 catch-up available to those 50 and older. Combined with the $24,500 base limit, that's $35,750 total for this age group. The higher limit applies only during the 60-63 window; at 64 it reverts to $8,000. Check with your plan administrator to confirm it's enabled - not all plans have activated it yet. QWhy do beneficiary designations matter so much for retirement accounts? ABecause 401(k)s and IRAs pass outside of your estate - they go directly to whoever is named as beneficiary, regardless of what your will says. A stale designation (ex-spouse, deceased parent, or simply an old form) can send your retirement savings somewhere you never intended, and courts generally can't override it. Review beneficiaries after any major life event and at least every five years as a general checkup. QShould I contribute to a Roth or traditional 401(k)? AIf your employer's plan offers both, the choice comes down to whether your current tax rate is higher or lower than what you expect in retirement. Traditional (pre-tax) contributions make more sense if you're in a high bracket now and expect lower income in retirement. Roth contributions (after-tax) make more sense if you expect to be in a higher bracket later, or if you want tax-free income in retirement. Many people in their 30s and 40s benefit from Roth; those in peak earning years often favor traditional. Both types can coexist in the same plan. QWhat is the biggest 401(k) mistake people make? ACashing out when changing jobs is the single most expensive mistake - it's immediate, irreversible, and the taxes and penalties hit right away. The second biggest is contributing only enough to get the match and assuming that's sufficient. Both feel like minor decisions at the time but can mean tens of thousands of dollars less at retirement. **Categories:** Saving and Investing ideas **Tags:** 401K, funds, investing, IRA --- ### [CP05 and 4464C Letters in 2026 — Why the IRS Is Holding Your Refund and How Long the Review Really Takes](https://savingtoinvest.com/what-is-a-cp05-tax-notice-and-should-i-worry-when-i-get-this-letter-from-the-irs-around-my-tax-return-and-refund-payment/) **Published:** March 1, 2022 **Author:** Andy **Content:** ### Key Takeaways - A CP05 notice means the IRS is verifying your income, withholding, or credits before releasing your refund - no action is needed in most cases. - The standard window is 60 days from the notice date; real-world CP05 delays run 60-120 days from filing in 2026. - A 4464C letter is the same review sent by Integrity & Verification Operations; read it fully to see if documents are requested. - The CP05A escalation does require action - send the requested income/withholding documentation and allow another 45-60 days. - Watch your transcript for codes 571/572 then 846 to see the hold actually lift; a CP05 for a year you didn't file means possible identity theft (Form 14039). You check the mail expecting your refund status to improve, and instead find an IRS envelope with “CP05” printed across the top. Deep breath: a CP05 is one of the more benign letters the IRS sends. It means your refund is being held while the agency verifies your return — and in most cases, **you don’t need to do anything**. Here’s the 2026 picture on what these letters mean, the actual timelines, and when a CP05 becomes something you do need to act on. Covered in this Article: [Toggle](#) - [What a CP05 Notice Means](#What_a_CP05_Notice_Means) - [What a 4464C Letter Means](#What_a_4464C_Letter_Means) - [The Escalation Path: CP05A and Beyond](#The_Escalation_Path_CP05A_and_Beyond) - [What You Should (and Shouldn’t) Do](#What_You_Should_and_Shouldnt_Do) - [Looking Ahead: 2027 Filing Season](#Looking_Ahead_2027_Filing_Season) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## What a CP05 Notice Means Per the [IRS’s own CP05 page](https://www.irs.gov/individuals/understanding-your-cp05-notice), the notice goes out when the agency needs more time to verify your income, income tax withholding, tax credits, and/or business income against employer and third-party records. The standard ask: allow **60 days** from the notice date. If you haven’t received your refund or heard anything after 60 days, then you contact the IRS at the number on the notice. Until then, calling doesn’t help — the review simply hasn’t finished. In practice, total delay from filing to refund on CP05 cases runs **60 to 120 days** this season, with peak-season filers (February–April) skewing toward the longer end given IRS staffing levels roughly 27% below recent peaks. ## What a 4464C Letter Means The 4464C is the CP05’s cousin, sent by the IRS’s Integrity & Verification Operations group. Same underlying situation — your return was selected for income/withholding verification before the refund releases — with the same practical playbook: wait out the stated review window unless the letter asks for something specific. The subtle difference I flag for readers: a 4464C sometimes precedes a request for documentation, while a CP05 more often resolves on its own. Either way, the letter itself tells you if action is needed. Read it fully before assuming either panic or safety. ## The Escalation Path: CP05A and Beyond If the IRS can’t verify your return internally, the follow-up is a **CP05A** — and that one does require action. It asks for documentation supporting income or withholding (paystubs, employer letters, 1099s). Respond completely and allow another **45 to 60 days** after submitting. If your withholding can’t be verified at all, a CP05B may follow, and resolution can stretch toward 16 weeks. This is the point where, if you’re facing genuine financial hardship, the [Taxpayer Advocate Service](https://savingtoinvest.com/contact-a-tax-advocate-to-help-get-your-refund-released-from-the-irs/) becomes a realistic option. **Mark’s case:** Mark filed in early February with two W-2s after a mid-year job change. His CP05 arrived in March — the IRS couldn’t yet match his second employer’s withholding. He did nothing, and his refund arrived in late May, about 78 days after the notice. His situation resolved exactly as the letter said it would; the job change was the trigger, not any error. ## What You Should (and Shouldn’t) Do Don’t file an amended return because of a CP05 — the review isn’t a finding that anything’s wrong, and a [1040-X](https://savingtoinvest.com/amended-tax-return-refund-schedule-rules-form-1040x-and-deadlines/) just muddies the water. Don’t call before the 60 days are up. Do verify the letter is real (the notice number should match what’s in your [IRS online account](https://www.irs.gov/payments/online-account-for-individuals)), do keep copies of W-2s and paystubs handy in case a CP05A follows, and do watch your [tax transcript](https://savingtoinvest.com/using-your-irs-transcript-to-get-your-tax-return-and-refund-processing-status-and-key-dates/) — a 571/572 resolution code followed by 846 is how the hold actually lifts. One important exception: if you receive a CP05 for a year you **didn’t file**, someone may have filed using your Social Security number. File Form 14039 (Identity Theft Affidavit) right away. ## Looking Ahead: 2027 Filing Season Income-verification holds are driven by how fast the IRS can match returns against employer W-2/1099 data, and the agency keeps tightening that matching — including the newer 1099-DA digital asset forms. With staffing still constrained, I’d expect CP05 volume and the 60-120 day real-world window to look similar next season, and early filers whose employers report late will keep tripping the filter. What I’m watching: whether the IRS speeds up third-party data matching (which would shrink these reviews), and any staffing changes before January. I’ll update this page for the 2027 season once the IRS publishes new review timelines. ## Common Issues to Watch Out For - **Calling before day 60.** The IRS explicitly asks you not to, and agents can’t accelerate an unfinished review. - **Filing a 1040-X in response to a CP05.** An amended return doesn’t clear the review — it adds a second, slower process on top. - **Ignoring a CP05A.** Unlike the CP05, the “A” version requires documents. Missing that distinction adds months. - **Not keeping withholding proof.** A job change or multiple employers is the classic CP05 trigger — keep final paystubs until your refund lands. - **Getting a CP05 for a year you didn’t file.** That’s an identity theft flag — file Form 14039 immediately. Frequently Asked Questions QShould I worry about a CP05 notice? AGenerally no. It means the IRS is verifying income, withholding, or credits before paying your refund - not that you did anything wrong. Most CP05 reviews resolve without any action from you. QHow long will the IRS hold my refund after a CP05? AAllow 60 days from the notice date before contacting the IRS. Total delay from filing to refund typically runs 60 to 120 days on CP05 cases this season. QWhat's the difference between a CP05 and a 4464C letter? AThey flag the same income-verification review. The 4464C comes from the IRS's Integrity & Verification Operations group and somewhat more often precedes a documentation request; the CP05 more often resolves on its own. QWhat is a CP05A and how is it different? AA CP05A means the IRS couldn't verify your return internally and needs documentation - paystubs, employer letters, or 1099s. Unlike the CP05, it requires a response, then another 45-60 days of review. QWhat triggers a CP05 review? ACommon triggers are withholding that doesn't match employer records yet, mid-year job changes, multiple W-2s, refundable credit claims, and early filing before third-party data catches up. QCan the Taxpayer Advocate help with a CP05 hold? AYes, if the delay has run well past stated timelines or is causing financial hardship. TAS intervention is most realistic at the CP05A/CP05B stage when reviews stretch toward 16 weeks. **Categories:** Taxes and Retirement --- ### [When Can I File and Check My State Tax Refund? 2026 State-by-State Status Tracker Links](https://savingtoinvest.com/when-can-i-file-and-check-my-state-tax-refund/) **Published:** January 23, 2015 **Author:** Andy **Content:** ### Key Takeaways - Every income-tax state runs its own refund tracker - you'll typically need your SSN and exact refund amount, and most update once daily overnight. - E-file with direct deposit runs 2-4 weeks in most states; paper filing or review flags can stretch to 12+ weeks. - State refunds routinely arrive after federal ones because states verify returns against IRS-accepted federal data first. - Nine states have no wage income tax and no refund to track: AK, FL, NV, NH, SD, TN, TX, WA, WY. - If you itemized deductions, your state refund may be taxable federal income next year via Form 1099-G. Most of the refund attention every season goes to the [federal IRS refund](https://savingtoinvest.com/when-will-i-get-my-tax-refund/), but over 40 states also collect income tax — and every one runs its own processing schedule, its own refund tracker, and its own delays. State refunds routinely take **2 to 12 weeks**, often landing *after* your federal refund even when you filed both the same day. Below are the official “where’s my refund” tools for every state with an income tax, plus what actually drives state-level delays. You can also see the a[verage state tax refund here](https://savingtoinvest.com/average-irs-and-state-tax-refund-and-processing-times/), which may be higher than federal refunds in some cases! Covered in this Article: [Toggle](#) - [When Can I File My State Return?](#When_Can_I_File_My_State_Return) - [Check Your State Refund Status](#Check_Your_State_Refund_Status) - [Why State Refunds Take Longer Than Federal](#Why_State_Refunds_Take_Longer_Than_Federal) - [Looking Ahead: 2027 Filing Season](#Looking_Ahead_2027_Filing_Season) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## When Can I File My State Return? Most states open filing when the IRS does — late January — since state returns generally build off your federal return. E-filing both together through your tax software is the standard (and fastest) path; most states also participate in combined federal/state e-file so both returns transmit at once. For the federal side of key dates, see my [when can I file post](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/). State filing deadlines mostly mirror the federal mid-April date, but a handful differ (Virginia’s May 1, Louisiana’s May 15, Iowa’s April 30 among them) — check your state’s site below if you’re cutting it close. ## Check Your State Refund Status You’ll generally need your SSN, refund amount, and sometimes filing status or ZIP code. Like the IRS tools, most state trackers update once daily overnight. StateWhere to check your refundAlabama[My Alabama Taxes](https://myalabamataxes.alabama.gov/)Arizona[AZTaxes refund check](https://www.aztaxes.gov/default.aspx?target=CheckRefund)Arkansas[Arkansas Taxpayer Access Point](https://www.ark.org/dfa_ri/app/login.html)California[FTB Where’s My Refund](https://www.ftb.ca.gov/refund/)Colorado[Where’s My Refund – Colorado](https://tax.colorado.gov/where-is-my-refund)Connecticut[CT Dept. of Revenue Services](https://portal.ct.gov/drs)Delaware[Delaware refund inquiry](https://dorweb.revenue.delaware.gov/refinq/)District of Columbia[MyTax.DC](https://mytax.dc.gov/)Georgia[Georgia Where’s My Refund](https://dor.georgia.gov/wheres-my-refund)Hawaii[Hawaii tax refund status](https://tax.ehawaii.gov/hoihoi)Idaho[Idaho State Tax Commission](https://tax.idaho.gov/)Illinois[MyTax Illinois](https://mytax.illinois.gov/)Indiana[Indiana DOR refund status](https://www.in.gov/dor/individual-income-taxes/check-the-status-of-your-refund/)Iowa[Iowa Where’s My Refund](https://www.idr.iowa.gov/wheresmyrefund/)Kansas[Kansas refund status](https://www.kdor.org/refundstatus/default.asp)Kentucky[Kentucky Dept. of Revenue](https://revenue.ky.gov)Louisiana[Louisiana Dept. of Revenue](https://revenue.louisiana.gov/)Maine[Maine Revenue Services](https://www.maine.gov/revenue/)Maryland[Comptroller of Maryland](https://www.marylandtaxes.gov/)Massachusetts[Check your MA refund](https://www.mass.gov/how-to/check-the-status-of-your-ma-income-tax-refund)Michigan[Michigan Treasury eServices](https://www.michigan.gov/taxes)Minnesota[Minnesota Where’s My Refund](https://www.revenue.state.mn.us/wheres-my-refund)Mississippi[Mississippi Dept. of Revenue](https://www.dor.ms.gov/)Missouri[Missouri return inquiry](https://dors.mo.gov/tax/taxinq/welcome.jsp)Montana[Montana Dept. of Revenue](https://mtrevenue.gov/)Nebraska[Nebraska refund status](https://www.nebraska.gov/revenue/refund/refundstat.html)New Jersey[NJ refund status](https://www.nj.gov/treasury/taxation/checkrefundstatus.shtml)New Mexico[NM Taxpayer Access Point](https://tap.state.nm.us/)New York[NY refund status](https://www.tax.ny.gov/pit/file/refund.htm)North Carolina[NC Where’s My Refund](https://eservices.dor.nc.gov/wheresmyrefund/SelectionServlet)North Dakota[ND refund status](https://secure.apps.state.nd.us/tax/refundstatus/refundstatus.htm)Ohio[Ohio refund status](https://tax.ohio.gov/individual/refund-status)Oklahoma[Oklahoma Taxpayer Access Point](https://oktap.tax.ok.gov/OkTAP/Web/)Oregon[Oregon refund status](https://secure.dor.state.or.us/refund/refund.cfm)Pennsylvania[myPATH Pennsylvania](https://mypath.pa.gov/)Rhode Island[RI refund status](https://www.ri.gov/cgi-bin/taxation/refund/status.cgi)South Carolina[SC refund status](https://dor.sc.gov/refund)Utah[Utah Taxpayer Access Point](https://tap.utah.gov/)Vermont[Vermont refund status](https://secure.vermont.gov/TAX/refund/)Virginia[Virginia Where’s My Refund](https://www.tax.virginia.gov/wheres-my-refund)West Virginia[WV MyTaxes](https://mytaxes.wvtax.gov/)Wisconsin[Wisconsin return status](https://www.revenue.wi.gov/Pages/Apps/TaxReturnStatus.aspx) **No state income tax on wages** — nothing to track: Alaska (AK), Florida (FL), Nevada (NV), New Hampshire (NH), South Dakota (SD), Tennessee (TN), Texas (TX), Washington (WA), and Wyoming (WY). ## Why State Refunds Take Longer Than Federal A few structural reasons. Most states **wait on federal data** — they verify your state return against the IRS-accepted federal return, so a delayed federal return delays the state one too. **Fraud filters** have tightened at the state level, and many states now hold first-time filers’ or new-address refunds for identity checks that add weeks. And state revenue departments run on a fraction of the IRS’s systems budget — several still process a surprising share of returns semi-manually. The same rules of thumb apply as federal: e-file plus direct deposit is fastest (typically 2–4 weeks in most states), paper anything adds a month or more, and errors or credit claims trigger manual review. If your state refund is far outside the published window, most state trackers list a phone number — and unlike the [IRS’s 21% answer rate](https://savingtoinvest.com/will-calling-the-irs-help-getting-my-tax-refund-faster/), many state lines are actually reachable. **One planning note:** if you itemized and deducted state taxes, remember a state refund can be **taxable income** on next year’s federal return (you’ll get a 1099-G). Standard-deduction filers can ignore this. ## Looking Ahead: 2027 Filing Season State season will again open with the IRS in late January 2027. The thing I’m watching at the state level: more states are joining the IRS Direct File ecosystem with integrated state filing, which shortens the federal-verification lag that drives many state delays. Several states also continue cutting income tax rates — which changes withholding tables and, historically, produces a bump in refund-math surprises the first season after a cut. I’ll refresh the links and timing guidance here before the 2027 season opens. ## Common Issues to Watch Out For - **Expecting state and federal refunds together.** Different systems, different schedules — a same-day filing routinely produces refunds weeks apart. - **Checking with the wrong numbers.** State trackers want your exact refund amount as filed — a rounded or misremembered number returns “no record found.” - **Panicking at “no information available” in week one.** Most state systems don’t show anything until the return clears initial processing, often 1-2 weeks after e-file. - **Forgetting the 1099-G.** If you itemized, this year’s state refund may be taxable on next year’s federal return. - **Using lookalike sites.** Only use your state revenue department’s official site (the links above) — “refund tracker” ad sites harvest SSNs. Frequently Asked Questions QHow long does a state tax refund take in 2026? AMost states pay e-filed, direct-deposit refunds in 2 to 4 weeks. Paper returns, identity-verification flags, or credit reviews can push it to 8-12 weeks or more, depending on the state. QWhy did my federal refund arrive but not my state refund? AStates generally verify your return against IRS data before processing, run their own fraud filters, and have smaller processing operations - so state refunds commonly lag federal ones by days to weeks even when filed together. QWhat do I need to check my state refund status? ATypically your SSN and the exact refund amount from your return; some states also ask filing status or ZIP code. Use only your state revenue department's official tracker. QWhen can I file my state tax return? AMost states open with the IRS in late January and share the mid-April federal deadline, though a few differ (Virginia allows until May 1, Louisiana May 15). E-filing federal and state together is fastest. QIs my state tax refund taxable? AOnly if you itemized federal deductions and deducted state income taxes - then some or all of the refund is taxable and reported on Form 1099-G. Standard-deduction filers owe nothing on it. QWhich states have no income tax refund to track? AAlaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming don't tax wage income. **Categories:** Taxes and Retirement **Tags:** CA, federal, IL, NY, refund, return, state, tax, TX --- ### [How Car Rental Companies Sneak Extra Fees Onto Your Bill — and How to Fight Back](https://savingtoinvest.com/how-car-rental-companies-live-avis-rip-you-off-with-extra-fees-for-linking-to-your-frequent-flier-reward-program/) **Published:** March 18, 2023 **Author:** Andy **Content:** ### Key Takeaways - The costliest surprises come after you return the car: toll program per-day service fees, inflated refueling charges, and delayed damage claims. - One cashless toll can trigger service fees for every day of the rental - bring your own transponder or prepay the toll authority directly. - Photograph or video the car at pickup and return, every time - it's the only defense against weeks-later damage letters. - Check your auto policy and credit card rental coverage before paying $15-$35/day for the counter collision waiver. - Dispute bogus charges in writing with the company first, then via credit card chargeback - documented disputes succeed regularly. This post started with my own Avis rental years ago, where the final bill came in noticeably higher than the quote — charges I only discovered *after* returning the car. The dollar amount wasn’t huge; the way it was disclosed felt deliberately buried. Judging by the comments this post has collected since, my experience was the industry’s standard operating procedure. Here’s the 2026 version of the fee playbook, and what actually works to fight it. Covered in this Article: [Toggle](#) - [The Fees That Show Up After You Return the Car](#The_Fees_That_Show_Up_After_You_Return_the_Car) - [The Fees Baked Into the Counter Experience](#The_Fees_Baked_Into_the_Counter_Experience) - [How to Actually Fight a Bogus Charge](#How_to_Actually_Fight_a_Bogus_Charge) - [Renting Smarter in the First Place](#Renting_Smarter_in_the_First_Place) - [Looking Ahead: 2027](#Looking_Ahead_2027) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## The Fees That Show Up After You Return the Car **Toll “convenience” programs** are the biggest post-return surprise. Drive through one cashless toll and many companies activate their toll program — charging the toll *plus* a service fee that can run $4–$6 per day for the entire rental, not just the day you hit the toll. On a two-week rental, a $2 toll becomes $60+. Cashless-only toll roads (increasingly common across the US) make this nearly unavoidable unless you bring your own transponder or prepay the toll authority directly. **Fuel charges.** Return it a gallon short of full and you’ll pay a per-gallon rate often double or triple the pump price, or a flat refueling fee. Photograph the fuel gauge and keep your fill-up receipt from a station near the return lot. **Damage claims.** Weeks-later letters claiming scratches or dings you don’t remember are a well-documented industry pattern — and some companies have automated damage-scanning at return gates, which has increased small-damage claims. Your defense is timestamped photos and video of the car at pickup *and* return, every time, no exceptions. **Late return fees.** Grace periods have shrunk — an hour late can trigger a full extra day plus an hourly penalty. Call ahead if you’ll be late; a noted extension is usually cheaper than a silent one. ## The Fees Baked Into the Counter Experience The counter upsell is where quoted prices go to die: prepaid fuel (“so convenient”), collision damage waivers ($15–$35/day) that may duplicate coverage you already have, roadside assistance packages, and upgrades “for just a few dollars a day.” Two checks before you travel: whether your [auto insurance policy](https://savingtoinvest.com/cheaper-auto-insurance/) extends to rentals (most do for personal rentals), and whether your credit card includes rental collision coverage (many travel cards do, if you decline the counter waiver and pay with the card). Then there’s the pile of line-item add-ons — airport concession recovery fees, vehicle licensing fees, facility charges, “customer facility” fees, and additional-driver charges. Some are genuinely government-imposed; others are the company recovering its own costs of doing business as a separate line so the headline rate looks lower. Booking sites are required to disclose total price, but the counter add-ons land after that quote. ## How to Actually Fight a Bogus Charge Dispute in this order. First, the rental company itself, in writing, with your photos and receipts — front-line agents have real waiver authority for toll and fuel fees, and persistence pays. Second, your credit card: a **chargeback dispute** for charges that don’t match your signed agreement is your strongest practical lever; card networks side with documented customers regularly. Third, escalate externally — a complaint to your **state attorney general’s office** and the [FTC](https://reportfraud.ftc.gov/) creates a paper trail companies respond to, and for airport locations, the airport authority’s customer service office has surprising pull with on-site franchises. **My Avis toll example, updated:** the disputed charge was a toll service fee applied to every day of the rental for a single toll crossing. A written dispute citing the buried disclosure got half refunded; the credit card dispute for the remainder got the rest. Total time invested: maybe 40 minutes. Worth it on principle alone. ## Renting Smarter in the First Place Book direct or through reputable aggregators and re-check the total-price breakdown before confirming. Skip airport pickups when practical — off-airport locations often dodge 10–25% in airport concession fees. Bring your own toll transponder where compatible, decline prepaid fuel, and if you’re renting to test-drive a potential purchase, my [used car buying guide](https://savingtoinvest.com/buying-a-used-car-unnecessary-hassle-or-financially-savvy/) and [car buying tips](https://savingtoinvest.com/ten-car-buying-tips-to-getting-best/) cover the ownership-cost math that rental economics feed into. ## Looking Ahead: 2027 Junk-fee regulation is the thing to watch. Federal rules targeting hidden mandatory fees (requiring all-in upfront pricing in ads) continue rolling through travel industries, and several states have their own junk-fee laws now in effect — California’s being the most aggressive. If enforcement extends firmly into rental cars, the toll-program and facility-fee games get harder to play. Automated damage scanning will keep expanding, which cuts both ways: more small claims, but also better exculpatory evidence if you photograph the car yourself. I’ll update this post as the rules land. ## Common Issues to Watch Out For - **Skipping pickup/return photos.** Sixty seconds of video is your entire defense against a damage claim letter that arrives three weeks later. - **Driving cashless tolls without a plan.** One toll can activate a per-day service fee for the whole rental — bring a transponder or prepay the toll authority online. - **Paying twice for collision coverage.** Check your auto policy and credit card benefits before accepting a $25/day waiver at the counter. - **Prepaying fuel “for convenience.”** You’re buying a full tank regardless of what you return — refill near the lot and keep the receipt instead. - **Accepting the final bill as final.** Written disputes with documentation get partial or full refunds far more often than people assume — and chargebacks exist. Frequently Asked Questions QWhy did my rental car bill have charges added after I returned the car? APost-return charges typically come from toll program activation (with per-day service fees), refueling charges, late-return penalties, or damage claims. Review the itemized final receipt against your signed agreement - several of these are disputable. QHow do rental car toll charges work? ADriving through a cashless toll typically activates the company's toll program, which charges the toll plus a service fee - often $4-$6 for each day of the entire rental, not just the toll day. Using your own transponder or prepaying the toll authority avoids it. QDo I need the collision damage waiver at the counter? AOften not. Most personal auto policies extend to rental cars, and many credit cards include rental collision coverage when you pay with the card and decline the counter waiver. Verify both before your trip. QHow do I dispute a rental car damage claim? ARespond in writing with your timestamped pickup and return photos or video, demand the company's before/after evidence and repair invoices, and escalate to a credit card chargeback and your state attorney general if the claim doesn't hold up. QAre airport rental fees avoidable? ASometimes - airport concession and facility fees can add 10-25% to the bill, and off-airport locations often don't carry them. Weigh the savings against the hassle of getting to the off-airport lot. QWhat's the single best habit to avoid rental fee surprises? ADocument everything: photos of the car and fuel gauge at pickup and return, a fill-up receipt from near the lot, and a copy of the signed agreement. Nearly every successful dispute rests on that file. **Categories:** Taxes and Retirement --- ### [The Personal Exemption Is Gone for Good — What Replaced It on Your 2026 Tax Return](https://savingtoinvest.com/losing-my-4050-personal-exemptions-in-2018/) **Published:** December 20, 2017 **Author:** Andy **Content:** ### Key Takeaways - The $4,050 personal exemption was suspended in 2018 and permanently eliminated by the One Big Beautiful Bill Act - it is not coming back. - The 2026 standard deduction is $16,100 (single), $32,200 (married filing jointly), and $24,150 (head of household), now permanently inflation-indexed. - The Child Tax Credit is $2,200 per qualifying child for 2026, and non-CTC dependents qualify for a $500 credit. - Filers 65+ get a new $6,000 per-person bonus deduction (through 2028), phasing out above $75,000 single / $150,000 joint income. - Large families with many older dependents were the main losers in the trade; most other households come out ahead under the current structure. Quick answer for anyone searching: the **personal exemption is permanently gone**. The $4,050-per-person deduction last existed on 2017 returns, was suspended by the Tax Cuts and Jobs Act (TCJA) from 2018 through 2025, and Trump’s One Big Beautiful Bill Act (OBBBA) made the elimination **permanent** in 2025. It’s not coming back. I originally wrote this post when the exemption disappeared and families were bracing for higher tax bills. Eight years on, it’s worth a fresh look at what actually replaced it — because for most households, the replacement math works out better than people feared, though not for everyone. Covered in this Article: [Toggle](#) - [What the Personal Exemption Was](#What_the_Personal_Exemption_Was) - [What Replaced It](#What_Replaced_It) - [Who Won and Who Lost](#Who_Won_and_Who_Lost) - [Looking Ahead: 2027](#Looking_Ahead_2027) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## What the Personal Exemption Was Through 2017, you could deduct $4,050 from taxable income for yourself, your spouse, and each dependent. A married couple with three kids knocked $20,250 off their taxable income before anything else. Large families loved it; the exemption scaled with household size in a way the standard deduction doesn’t. ## What Replaced It **A near-doubled standard deduction, now permanent.** For 2026, it’s **$16,100 single, $32,200 married filing jointly, and $24,150 head of household**, per the [IRS’s 2026 inflation adjustments](https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill). OBBBA locked these levels in with annual inflation indexing — the scheduled 2026 “snap-back” to the old system never happened. **A bigger Child Tax Credit.** The CTC doubled to $2,000 per child under TCJA and OBBBA pushed it to **$2,200 per qualifying child for 2026**, inflation-indexed going forward. Credits beat deductions dollar-for-dollar — a $2,200 credit cuts your tax bill by $2,200, while a $4,050 exemption in the 22% bracket only saved about $891 per person. Full details in my [Child Tax Credit guide](https://savingtoinvest.com/child-and-kiddie-tax-credit-and-income-thresholds/). **A $500 credit for other dependents.** College-age kids, elderly parents you support, and other non-CTC dependents get the “Credit for Other Dependents” — a partial answer to losing their exemptions. **For seniors: a new bonus deduction.** OBBBA added a **$6,000 per-person deduction for filers 65+** (2025–2028), on top of the regular extra standard deduction for age. It phases out above $75,000 of income ($150,000 joint). If that’s you, this is worth more than the old exemption ever was. ## Who Won and Who Lost **Winners:** most single filers and married couples with 0–2 kids, seniors under the income phase-out, and anyone who used to itemize small amounts — the big standard deduction simplified their filing and cut their bill. **Losers:** large families with several dependents over the CTC age limits, and some households supporting multiple adult dependents — the $500 other-dependent credit doesn’t fully replace a $4,050 exemption per person for higher-bracket filers. **Sarah’s example:** Sarah and her husband have four kids, two under 17. Old system (inflated to today): ~$24,300 in exemptions plus a much smaller standard deduction and a $1,000/child CTC. In 2026: $32,200 standard deduction + $4,400 in CTC for the younger two + $1,000 in other-dependent credits for the older two. Despite losing six exemptions, their total federal tax is lower under the current system — the doubled standard deduction and doubled-plus credit do the heavy lifting. Note that exemptions still exist in a few corners: several **states** still allow personal exemptions on state returns even though the federal one is gone, so don’t be confused when your state form asks about them. ## Looking Ahead: 2027 Because [OBBBA](https://savingtoinvest.com/reconciling-trumps-big-beautiful-bill-bbb/) made the current structure permanent, 2027 brings inflation adjustments rather than structural change — expect the standard deduction, CTC, and bracket thresholds to tick up in the usual October/November IRS announcement. The senior $6,000 deduction is currently scheduled to run through 2028, so watch whether Congress extends it as that sunset approaches. The practical takeaway for planning: with roughly 9 in 10 filers now taking the standard deduction, the levers that matter are the credits — CTC, [EITC](https://savingtoinvest.com/earned-income-tax-credit-eitc-qualification-and-income-threshold-limits/), education credits — and pre-tax savings like your [401(k) and IRA contributions](https://savingtoinvest.com/401k-ira-and-roth-ira-contribution-and-income-limits), which reduce taxable income the way exemptions used to. I’ll update the figures here when the IRS publishes 2027 numbers. ## Common Issues to Watch Out For - **Waiting for the exemption to come back.** It won’t — OBBBA made the elimination permanent. Plan around the current structure. - **Confusing federal and state rules.** Several states still have personal exemptions on state returns; check your state’s form rather than assuming it matches federal. - **Missing the $500 other-dependent credit.** Adult dependents (college kids, supported parents) don’t get the CTC but do qualify for this — it’s commonly overlooked. - **Seniors missing the new $6,000 deduction.** It’s new since 2025, per-person, and phases out above $75k/$150k income — check eligibility before filing. - **Assuming you should still itemize.** With the standard deduction this large, itemizing only pays if your deductions clear $16,100/$32,200 — most filers no longer come close. Frequently Asked Questions QIs the personal exemption coming back? ANo. It was suspended from 2018-2025 by the TCJA, and the One Big Beautiful Bill Act made the elimination permanent. The larger standard deduction and credits are the permanent replacement. QWhat is the standard deduction for 2026? A$16,100 for single filers, $32,200 for married filing jointly, and $24,150 for head of household - with annual inflation adjustments going forward. QWhat replaced the exemption for dependents? AThe Child Tax Credit ($2,200 per qualifying child in 2026) and the $500 Credit for Other Dependents for those who don't qualify for the CTC, like college-age kids and supported parents. QWhat's the new deduction for seniors? AOBBBA added a $6,000 per-person deduction for filers age 65+, available 2025 through 2028, on top of the regular additional standard deduction for age. It phases out above $75,000 (single) / $150,000 (joint). QDo any states still have personal exemptions? AYes - several states kept personal exemptions on their state income tax returns even though the federal exemption is gone. Check your own state's rules. QWas eliminating the exemption a tax increase? AFor most households, no - the doubled standard deduction and expanded credits more than offset it. Large families with several dependents too old for the CTC were the main group that came out behind. **Categories:** Taxes and Retirement **Tags:** 2018, Personal Exemption, tax, Trump --- ### [401(k) Basics — How Your Plan Works, 2026 Limits, and Getting Every Dollar of the Match](https://savingtoinvest.com/401k-basics/) **Published:** September 9, 2007 **Author:** Andy **Content:** ### Key Takeaways - The 2026 401(k) employee contribution limit is $24,500, with an $8,000 catch-up at 50+ and an $11,250 super catch-up at ages 60-63. - Your first priority is contributing enough to capture the full employer match - it's an instant 50-100% return. - Higher earners (~$150k+ prior-year wages) must now make catch-up contributions as Roth under SECURE 2.0. - Traditional (pre-tax) suits peak earners; Roth suits lower brackets now - splitting between both is a reasonable hedge. - Always use direct rollovers when changing jobs, and check your vesting schedule before giving notice. The 401(k) is the workhorse of American retirement saving — and for 2026, you can contribute up to **$24,500** of your own pay, more if you’re 50 or older. Yet the number that matters most for most people isn’t the maximum. It’s whatever percentage unlocks your **full employer match**, because that match is the only guaranteed 50–100% instant return in all of personal finance. Here’s how the whole thing works, updated with the 2026 numbers. Covered in this Article: [Toggle](#) - [What a 401(k) Is](#What_a_401k_Is) - [The 2026 Contribution Limits](#The_2026_Contribution_Limits) - [The Match: Your First Priority](#The_Match_Your_First_Priority) - [Traditional vs Roth: The Short Version](#Traditional_vs_Roth_The_Short_Version) - [Getting Money Out (and Why You Shouldn’t Early)](#Getting_Money_Out_and_Why_You_Shouldnt_Early) - [Looking Ahead: 2027](#Looking_Ahead_2027) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## What a 401(k) Is A 401(k) is an employer-sponsored retirement savings plan (named after its section of the tax code). You elect a percentage of each paycheck to contribute; the money goes in before you ever see it and invests in funds you choose from the plan’s menu. The traditional version is funded **pre-tax**: contributions reduce your taxable income now, grow tax-deferred, and get taxed as ordinary income when withdrawn in retirement. Most plans also offer a **Roth 401(k)** option — contributions are after-tax, but qualified withdrawals in retirement are completely tax-free. Nonprofit and government workers get the same deal via 403(b) and TSP plans. ## The 2026 Contribution Limits Per the [IRS’s 2026 announcement](https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500), employee deferrals are capped at **$24,500** for 2026. Workers **50 and older** can add an **$8,000 catch-up** ($32,500 total), and thanks to SECURE 2.0’s “super catch-up,” workers **aged 60–63** can contribute an extra **$11,250** instead ($35,750 total) if their plan allows. One SECURE 2.0 wrinkle worth knowing: if you earned above the wage threshold (around $150,000, indexed) at your employer last year, your catch-up contributions must now go in as **Roth**. I keep the full breakdown of every limit — including the combined employer+employee cap of $72,000 — updated in my [401(k), 403(b) and TSP limits post](https://savingtoinvest.com/taking-advantage-of-new-401k/). ## The Match: Your First Priority A typical formula is 50 cents per dollar on the first 6% of pay, or dollar-for-dollar on the first 3–4%. If you earn $80,000 and your employer matches 50% up to 6%, contributing at least $4,800 gets you $2,400 of free money every year. Contributing less than the match threshold is leaving part of your compensation on the table. Mind the **vesting schedule** though: your own contributions are always 100% yours, but employer contributions may vest gradually (e.g., over 3–6 years). If you’re planning a job change, a few months’ timing can be worth thousands in vested match — check your schedule before you give notice. ## Traditional vs Roth: The Short Version Pre-tax (traditional) wins if your tax bracket in retirement will be lower than today — typical for peak earners. Roth wins if you’re early-career or otherwise in a low bracket now, since you lock in today’s low rate and never pay tax on the growth. Splitting contributions between both is a perfectly reasonable hedge; I dig into the tradeoff in my [Traditional vs Roth IRA guide](https://savingtoinvest.com/traditional-ira-versus-roth-ira-contribution-and-phase-out-income-limits/) — the same logic applies inside a 401(k). And if you’re a lower or moderate earner, check the [Saver’s Credit](https://savingtoinvest.com/savers-tax-credit-and-income-limits-to-help-workers-save-for-retirement/) — it’s a tax credit of up to $1,000 ($2,000 joint) just for contributing, on top of everything above. ## Getting Money Out (and Why You Shouldn’t Early) Withdrawals before **59½** generally take a 10% penalty plus income tax, with limited exceptions (including the rule-of-55 for those who leave their employer at 55+, hardship provisions, and a SECURE 2.0 $1,000 emergency withdrawal option). Loans are usually available up to 50% of your balance (max $50,000) — but an outstanding loan typically comes due quickly if you leave your job. When you change jobs, you can leave the money, roll it to the new plan, or roll it to an IRA — just always use a **direct rollover** to avoid the withholding trap. Required minimum distributions currently start at age 73 for traditional balances (Roth 401(k)s no longer have RMDs). **Jen’s example:** Jen, 27, earns $65,000 and contributes 6% ($3,900) to get her full 3% match ($1,950). She puts it all in a target-date fund and bumps her contribution 1% each year with raises. That boring setup, started at 27, is on track to beat most complicated strategies started at 40. ## Looking Ahead: 2027 Expect the IRS to announce 2027 limits in late October or early November 2026. Based on recent inflation trends, I’d project the employee deferral limit lands around $25,000–$25,500 (it moves in $500 increments), with the catch-up amounts nudging up proportionally. The mandatory Roth catch-up for higher earners is now fully in effect, so 2027’s main planning question for 50+ savers earning $150k+ is Roth tax treatment on catch-ups, not whether they can make them. I’ll update this page and the limits post when official numbers drop — treat these as projections until then. ## Common Issues to Watch Out For - **Contributing below the match threshold.** The most expensive 401(k) mistake there is — it’s a guaranteed return you’re declining. - **Ignoring vesting before a job change.** Leaving one quarter too early can forfeit years of employer contributions. - **Maxing out too fast.** If you hit $24,500 in October, some plans stop your contributions — and your match — for the rest of the year. Check whether your plan has a “true-up” provision. - **Sitting in the default money market fund.** Decades of cash-level returns quietly wreck retirements; a target-date fund is a fine default if you don’t want to think about allocation. - **Cashing out when changing jobs.** Taxes plus the 10% penalty plus lost compounding make this a wealth-destroying move; roll it over instead. Frequently Asked Questions QHow much can I put in my 401(k) in 2026? A$24,500 in employee deferrals. Those 50+ can add an $8,000 catch-up ($32,500 total), and those aged 60-63 can contribute an $11,250 super catch-up instead ($35,750 total) if their plan allows. The combined employee-plus-employer cap is $72,000. QHow does the employer match work? AYour employer contributes based on what you defer - commonly 50 cents per dollar on your first 6% of pay, or dollar-for-dollar up to 3-4%. Contribute at least enough to get the full match; it's part of your compensation. QWhat's the difference between a traditional and Roth 401(k)? ATraditional contributions are pre-tax now and taxed at withdrawal; Roth contributions are taxed now and withdrawals are tax-free. Higher earners today generally favor traditional; lower brackets favor Roth. QWhat is vesting? AThe schedule on which employer contributions become permanently yours - often spread over 3-6 years. Your own contributions are always 100% vested immediately. QCan I take money out of my 401(k) early? AGenerally not without a 10% penalty plus income tax before age 59½, with exceptions like the rule of 55, hardship withdrawals, and a $1,000 emergency provision. Loans are possible but risky if you change jobs. QWhat happens to my 401(k) when I change jobs? AYou can leave it, roll it into the new employer's plan, or roll it into an IRA. Use a direct trustee-to-trustee rollover - an indirect payout triggers 20% withholding and a 60-day redeposit deadline. **Categories:** Taxes and Retirement **Tags:** 401K, Employer Plan, retirement, savings --- ### [Can Student Loans Take Your Tax Refund? The 2026 Offset Rules After the Collections Pause](https://savingtoinvest.com/can-my-delinquent-student-loan-debt-be-offset-against-my-irs-tax-refund/) **Published:** February 12, 2022 **Author:** Andy **Content:** ### Key Takeaways - Defaulted federal student loans can take your entire tax refund via the Treasury Offset Program - including EITC and Child Tax Credit amounts - with no court order. - Involuntary collections restarted in May 2025, then were paused again in January 2026 during the transition to the new repayment system that took effect July 1, 2026; resumption is expected but not yet dated. - Use the pause: loan rehabilitation (nine payments, as low as $5/month) or consolidation gets you out of default before offsets resume. - Filed jointly and your spouse's loan took the refund? Form 8379 (Injured Spouse) recovers your share. - Check your status at StudentAid.gov and call the Treasury offset line (1-800-304-3107) to see any debts flagged against your refund. Short answer for 2026: yes, defaulted federal student loans **can** be collected from your tax refund through the Treasury Offset Program (TOP) — but right now, most involuntary collections are **paused again**, and the window before they restart is exactly when you should act. This has whipsawed a lot in the past year, so here’s the current state of play. Covered in this Article: [Toggle](#) - [Where Things Stand Right Now](#Where_Things_Stand_Right_Now) - [How a Refund Offset Works](#How_a_Refund_Offset_Works) - [How to Protect Your Refund — Use the Pause](#How_to_Protect_Your_Refund_%E2%80%94_Use_the_Pause) - [Looking Ahead: 2027 Filing Season](#Looking_Ahead_2027_Filing_Season) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## Where Things Stand Right Now After the five-year pandemic pause, the Department of Education restarted Treasury offsets in **May 2025**. Then, in **January 2026**, it [announced another temporary delay](https://www.ed.gov/about/news/press-release/us-department-of-education-delays-involuntary-collections-amid-ongoing-student-loan-repayment-improvements) of involuntary collections — tax refund offsets, wage garnishment, and federal benefit seizures — while the system transitions to the new repayment framework that took effect **July 1, 2026** (including the new income-driven plan replacing SAVE). That pause is transitional, not permanent. With the July 1 reforms now live, offsets are expected to resume — the Department hasn’t committed to an exact date, so treat every month of the pause as borrowed time. Check your loan status at [StudentAid.gov](https://studentaid.gov/manage-loans/default/collections) — if you’re in default, you should have received (or will receive) a TOP notice before any offset happens. ## How a Refund Offset Works Once a defaulted loan (generally 270+ days past due) is referred to TOP, the Treasury intercepts your federal tax refund **before it reaches you** — automatically, no court order needed. There’s no protected amount: the entire refund can go, including the portions from the [EITC](https://savingtoinvest.com/earned-income-tax-credit-eitc-qualification-and-income-threshold-limits/) and Child Tax Credit. Social Security benefits can also be partially offset. If it happens, you’ll see the reduction reflected on WMR and your transcript — I cover [how offsets show up on your refund status and transcript](https://savingtoinvest.com/your-tax-refund-has-been-approved-for-direct-deposit-and-transcript-shows-846-with-payment-date-but-why-was-my-refund-adjusted/) (codes 846 followed by 898) in a companion post, plus how to reach the Treasury’s offset line (1-800-304-3107) to see which debt took it. ## How to Protect Your Refund — Use the Pause **Get out of default before offsets restart.** Two main paths: **loan rehabilitation** (nine agreed monthly payments over ten months — payments can be as low as $5/month based on income, and default comes off your credit report) or **consolidation** into a new Direct Loan with an income-driven plan. Rehabilitation can only be used once, but it’s usually the better first move. Start at StudentAid.gov’s default resolution pages. **If you file jointly and only your spouse has the defaulted loan**, file **Form 8379 (Injured Spouse Allocation)** to recover your share of a seized refund. Not fast — allow a few months — but it works. **Know the hardship option.** Even when offsets run, you can request an offset refund for demonstrated financial hardship (eviction, foreclosure, utility shutoff) through the Department’s Default Resolution Group. **Marcus’s example:** Marcus defaulted in 2024 and had $2,900 of his 2025 refund seized in the May-2025 restart window. When the new pause hit in January, he started rehabilitation at $5/month based on his income. By the time offsets resume, he’ll have completed his nine payments — out of default, credit report cleaned up, future refunds safe. One thing I’d flag for early planners: if you’re in default and not yet out by [filing season](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/), adjusting your W-4 withholding so you owe a small amount rather than receiving a big refund keeps your money out of TOP’s reach entirely — you can’t offset a refund that doesn’t exist. ## Looking Ahead: 2027 Filing Season This is the one to watch. If involuntary collections resume in late 2026 as the transition completes, the **2027 filing season would be the first full season of offsets** under the new repayment system — and borrowers who ignored the notices will find out via shrunken refunds. The Department is required to send TOP notification letters before offsetting, so keep your address current at StudentAid.gov and with your servicer. My advice stands regardless of the exact restart date: rehabilitation takes about ten months, so starting now is the difference between a protected 2027 refund and a seized one. I’ll update this post when the Department confirms the restart. ## Common Issues to Watch Out For - **Assuming the pause is permanent.** It’s a transition-period delay, and TOP already restarted once (May 2025). Plan for resumption, not reprieve. - **Ignoring the TOP notice.** The letter arrives before the offset and starts your window to dispute, rehabilitate, or claim hardship — tossing it costs you options. - **Missing the injured spouse claim.** If your joint refund was taken for your spouse’s loan, Form 8379 recovers your share — many eligible filers never file it. - **Thinking EITC is protected.** Unlike some debts, student loan offsets can take your entire refund including EITC and CTC portions. There’s no floor. - **Waiting for forgiveness that may not come.** Rehabilitation is concrete and available now; speculative forgiveness is not a plan for protecting next year’s refund. Frequently Asked Questions QWill student loans take my tax refund in 2026? AMost involuntary collections, including refund offsets, have been paused since January 2026 during the repayment-system transition. But the pause is temporary - offsets restarted once already in May 2025 and are expected to resume, so use the window to get out of default. QHow do I know if my refund will be offset? AYou must receive a Treasury Offset Program notice before an offset occurs. You can also call the TOP call center at 1-800-304-3107 to check for debts flagged against your refund, and check your loan status at StudentAid.gov. QCan they take my whole refund, including EITC? AYes. There is no protected amount for student loan offsets - the entire refund, including Earned Income Tax Credit and Child Tax Credit portions, can be applied to the defaulted debt. QHow do I get out of default before offsets resume? ALoan rehabilitation (nine agreed monthly payments over ten months, income-based and as low as $5/month) or consolidation into a Direct Loan with an income-driven plan. Rehabilitation also removes the default from your credit report. QWhat if the refund was taken for my spouse's loan? AFile IRS Form 8379, Injured Spouse Allocation, to recover your portion of a joint refund. Processing takes a few months but restores your share. QCan I get an offset refunded for hardship? AYes - the Department of Education's Default Resolution Group can refund offsets for documented financial hardship such as pending eviction, foreclosure, or utility shutoff. **Categories:** Taxes and Retirement --- ### [How to Choose a Financial Advisor in 2026 — Fees, Fiduciaries, and the AI Factor](https://savingtoinvest.com/how-to-choose-the-right-financial-advisor/) **Published:** March 26, 2011 **Author:** Andy **Content:** ### Key Takeaways - The first filter is fiduciary status: ask 'are you a fiduciary 100% of the time, in writing?' - RIAs are, many brokers and dual-registered reps aren't. - Fee-only (paid solely by you) is the cleanest compensation model; 'fee-based' means commissions too, and the difference matters enormously. - Verify every advisor free at adviserinfo.sec.gov and FINRA BrokerCheck, and insist your assets sit with an independent custodian. - Robo-advisors (~0.25%) and target-date funds cover pure investing; human advisors earn fees on tax coordination, estates, equity comp, and behavior - not stock picking. - Get the all-in cost (advisor fee plus fund expenses): 1% AUM plus expensive funds can triple the cost of a flat-fee planner using index funds. Most people still spend more time planning a vacation than choosing the person who’ll steer their life savings. And the stakes compound: a 1% difference in all-in costs on a $500,000 portfolio is $5,000 a year, every year, growing with the account. The good news is that vetting an advisor comes down to a handful of questions — and in 2026 you have more legitimate low-cost alternatives than ever, which changes who actually needs a human advisor at all. Covered in this Article: [Toggle](#) - [Question One: Are You a Fiduciary, All the Time?](#Question_One_Are_You_a_Fiduciary_All_the_Time) - [How Advisors Get Paid (and Why It Matters More Than Anything)](#How_Advisors_Get_Paid_and_Why_It_Matters_More_Than_Anything) - [Verify Before You Trust](#Verify_Before_You_Trust) - [Do You Even Need a Human? The 2026 Answer](#Do_You_Even_Need_a_Human_The_2026_Answer) - [Looking Ahead: 2027](#Looking_Ahead_2027) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## Question One: Are You a Fiduciary, All the Time? This remains the single most important filter. A **fiduciary** is legally required to put your interests first. Many “advisors” instead operate under a looser suitability-style standard — recommendations only need to be *suitable*, which leaves room for steering you toward products that pay them more. Ask directly: “Are you a fiduciary 100% of the time, with all my accounts, in writing?” Anything other than a plain yes is your answer. Registered Investment Advisers (RIAs) are fiduciaries by law; brokers and insurance-licensed reps often aren’t, or wear both hats depending on the product (“dual registration”) — which is where conflicts hide. ## How Advisors Get Paid (and Why It Matters More Than Anything) **Fee-only** advisors are paid solely by you — no commissions. That’s the cleanest model. Within fee-only, you’ll see assets-under-management fees (traditionally ~1%/year, negotiable and falling), flat annual retainers (often $2,000–$7,500), hourly rates, and one-time plan fees. Flat-fee and hourly models have expanded a lot and are worth seeking out if you mainly want a plan, not ongoing management. **Fee-based** (note the weasel wording — it is not the same as fee-only) means fees *plus* commissions. **Commission-only** means every recommendation carries a sales incentive. I won’t say no good advisors exist in those models, but you’re doing conflict-detection work the fee-only model does for you. Whatever the model, get the all-in number: advisor fee plus the expense ratios of what they put you in. An advisor charging 1% who fills your portfolio with 0.8%-fee funds costs you triple what a flat-fee planner using index funds does. ## Verify Before You Trust Ten minutes of checking eliminates most disasters. Look the person up on the SEC’s [Investment Adviser Public Disclosure site](https://adviserinfo.sec.gov/) and FINRA’s BrokerCheck — you’ll see licenses, employment history, and crucially, customer complaints and disciplinary actions. Verify credentials: **CFP®** (broad planning) and **CFA** (investments) are the heavyweight designations; be skeptical of alphabet soup you’ve never heard of, especially “senior specialist” titles sold via weekend courses. And one absolute rule: your money should be held at an independent third-party custodian (Schwab, Fidelity, etc.) in your name — never with checks written to the advisor personally. That’s the structural safeguard that separates bad advice from Madoff. ## Do You Even Need a Human? The 2026 Answer Be honest about what you need. **Robo-advisors** handle diversified investing, rebalancing, and tax-loss harvesting for ~0.25%. Target-date funds inside your [401(k)](https://savingtoinvest.com/401k-basics/) do the allocation job for even less. And AI tools have gotten genuinely useful for education and scenario math — though I’d treat any AI output as a starting point for questions, not personalized advice; the same goes for [using AI on your own investments](https://savingtoinvest.com/using-ai-to-invest-in-stock-market-momentum-how-i-made-a-quick-4000-in-3-trading-days/), where I’ve written about both the upside and the guardrails. Where a good human advisor earns their fee: coordinated tax planning (Roth conversion timing, [IRMAA cliffs](https://savingtoinvest.com/medicare-premiums-and-coinsurance-rates-for-part-b-medical-insurance-and-part-a-hospital-insurance/), charitable strategies), estate coordination, complex equity comp, business sales, and — underrated — being the behavioral circuit-breaker who stops you from selling everything in a crash. If your situation is “index funds and a savings rate,” you can probably skip the 1% AUM fee entirely. **Rita’s example:** Rita, 58, has $900k across a 401(k), IRAs, and a rental property, retiring in five years with Roth conversion and Medicare timing questions. A flat-fee fiduciary CFP at $4,000/year makes clear sense for her — versus the $9,000/year an AUM advisor would charge. Her 30-year-old son with a target-date fund and no complexity needs a savings rate, not an advisor. ## Looking Ahead: 2027 Fee compression continues — flat-fee and advice-only models keep growing at the expense of the traditional 1% AUM norm, and AI-assisted planning tools are pushing basic advice toward free. What I’m watching for 2027: how regulators handle AI-generated financial advice (guidance is coming, and the fiduciary question — whose interest does the algorithm serve? — is unresolved), and whether the advice-only movement makes hourly fiduciary planning genuinely mainstream. Either way, the vetting framework above doesn’t change: fiduciary, fee-only, verified, custodied independently. ## Common Issues to Watch Out For - **Confusing fee-based with fee-only.** One word of difference, entirely different incentive structure. Ask which one, in writing. - **Skipping the background check.** AdviserInfo and BrokerCheck are free and take ten minutes — complaints and firings show up there. - **Paying AUM fees for plan-only needs.** If you want a roadmap rather than ongoing management, hourly or flat-fee planners cost a fraction. - **Falling for free-dinner seminars.** The steak is paid for by high-commission annuity and insurance products. Enjoy dinner; sign nothing. - **Not asking about the all-in cost.** Advisor fee + fund expense ratios + trading costs is the real number that compounds against you. Frequently Asked Questions QWhat's the difference between a fiduciary and a regular financial advisor? AA fiduciary is legally obligated to act in your best interest at all times. Non-fiduciary advisors can operate under looser standards that permit recommending products that pay them higher commissions as long as they're broadly 'suitable.' QWhat does fee-only mean, and how is it different from fee-based? AFee-only advisors are compensated solely by client fees - no commissions. Fee-based advisors charge fees AND can earn commissions on products they sell, which reintroduces conflicts of interest. QHow much should a financial advisor cost in 2026? ATraditional AUM pricing runs about 1% annually (negotiable, and falling), flat-fee planners typically charge $2,000-$7,500 per year, and hourly fiduciary planners are widely available. Robo-advisors run around 0.25% for investment management alone. QHow do I check an advisor's background? ASearch them on the SEC's Investment Adviser Public Disclosure site (adviserinfo.sec.gov) and FINRA BrokerCheck - both free - for licenses, work history, complaints, and disciplinary actions. QDo I actually need a financial advisor? AIf your finances are simple (index funds, retirement accounts, steady savings), likely not - robos and target-date funds do the job cheaply. Human advisors add clear value for tax planning around retirement, estates, equity compensation, business sales, and behavioral discipline. QCan I use AI instead of a financial advisor? AAI tools are useful for education, scenario math, and generating questions - but treat their output as a starting point, not personalized fiduciary advice. Regulation of AI-generated advice is still evolving. **Categories:** Personal Finance and Money **Tags:** Financial Advisor, money, Planning, retirement --- ### [Refund Approved But Lower Than Expected? Code 846, Offsets, and Where the Missing Money Went](https://savingtoinvest.com/your-tax-refund-has-been-approved-for-direct-deposit-and-transcript-shows-846-with-payment-date-but-why-was-my-refund-adjusted/) **Published:** February 7, 2023 **Author:** Andy **Content:** ### Key Takeaways - A refund that arrives smaller than filed usually means a Treasury Offset Program (TOP) seizure for past-due child support, defaulted student loans, state tax, or unemployment overpayments. - Your transcript tells the story: code 846 for the full refund, then 898 for the offset portion; 899 means money coming back. - Call the TOP line at 1-800-304-3107 to learn which agency took the money - the IRS cannot reverse or explain another agency's offset. - Joint filers whose refund was taken for a spouse's debt can recover their share with Form 8379 (Injured Spouse Allocation). - No 898 code? The reduction is likely an IRS adjustment instead - look for a CP12 notice and its 60-day dispute window. Your refund finally hits “Refund Sent” on WMR or IRS2Go, [code 846 shows up on your transcript](https://savingtoinvest.com/code-846-refund-issued-on-your-irs-tax-transcript-what-it-means-for-your-direct-deposit-or-paper-check-refund-payment/) with a payment date — and then the deposit lands **smaller than the refund you filed for**. No warning, no explanation on the payment itself. This surprises thousands of filers every season. Here’s what almost always happened, and how to find out exactly who took the difference. ![WMR refund sent status showing an adjusted refund amount](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2023/02/image-8.png?w=820&ssl=1)WMR “Refund Sent” status — check the message text for offset noticesCovered in this Article: [Toggle](#) - [The Usual Culprit: A Refund Offset](#The_Usual_Culprit_A_Refund_Offset) - [How to Confirm It on Your Transcript](#How_to_Confirm_It_on_Your_Transcript) - [Finding Out Who Took It](#Finding_Out_Who_Took_It) - [If the Offset Took Your Spouse’s Share](#If_the_Offset_Took_Your_Spouses_Share) - [When It’s Not an Offset](#When_Its_Not_an_Offset) - [Looking Ahead: 2027](#Looking_Ahead_2027) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## The Usual Culprit: A Refund Offset The federal government, through the Treasury’s Bureau of the Fiscal Service (BFS), runs the **Treasury Offset Program (TOP)** — a matching system that intercepts federal payments, including tax refunds, to collect certain past-due debts before the money reaches you. No court order required. The debts that commonly grab refunds: past-due **child support**, defaulted **federal student loans** (see [where offsets stand in 2026](https://savingtoinvest.com/can-my-delinquent-student-loan-debt-be-offset-against-my-irs-tax-refund/) — currently paused but expected to resume), **state income tax debts**, **unemployment overpayments** owed back to a state, and other federal agency debts. Federal tax debt works slightly differently — the IRS itself applies your refund to prior-year balances before TOP even gets involved. ## How to Confirm It on Your Transcript An offset leaves fingerprints. On your [tax transcript](https://savingtoinvest.com/using-your-irs-transcript-to-get-your-tax-return-and-refund-processing-status-and-key-dates/), you’ll typically see code **846 (refund issued)** for the full approved amount, followed by code **898** showing the portion applied to a non-IRS debt. If you later see **899**, that’s a reversal — some or all of the offset money coming back to you (common after an injured-spouse claim). On WMR, look below the status bar: offset cases usually carry a message referencing [Tax Topic 203](https://savingtoinvest.com/irs-refund-adjustments-and-treasury-bfs-offsets-tax-topic-codes-203-598-or-898/) (refund reduced for offset). You’ll also get a mailed notice from BFS — not the IRS — listing the debt, the agency, and the amount taken. ## Finding Out Who Took It Call the **TOP call center at 1-800-304-3107** (see [BFS contact info](https://fiscal.treasury.gov/top/contact.html)). The automated line tells you which agency claimed your money and how to reach them. Two important points: the IRS can’t reverse a TOP offset — disputes go to the agency that claimed the debt — and if you believe the debt isn’t yours (identity mix-up, already paid), that agency is where you fight it. ## If the Offset Took Your Spouse’s Share Filed jointly, but the debt belongs only to your spouse? File **Form 8379 (Injured Spouse Allocation)** to recover your portion of the refund. You can file it with your return (if you know the offset is coming) or after the fact. Expect roughly 8–14 weeks of processing, and watch for that 899 reversal code when it succeeds. **Dre’s example:** Dre and his wife filed jointly expecting $4,200. The deposit came in at $1,750. His transcript showed 846 for $4,200, then 898 for $2,450 — his wife’s pre-marriage state tax debt. The TOP line confirmed the state agency; Dre filed Form 8379 and recovered his $2,100 share about ten weeks later, showing as an 899 on the transcript. ## When It’s Not an Offset If the numbers don’t match any debt you can identify, the other common cause is an **IRS adjustment** — the agency corrected a credit or calculation on your return and reduced the refund, in which case you’ll get a [CP12-series notice](https://savingtoinvest.com/irs-tax-notices-for-adjustments-due-to-tax-liability-or-refund-calculation-errors-cp11-cp12-cp13-and-cp14/) explaining the change and your 60-day right to dispute it. Adjustment reductions show differently on the transcript (no 898 code), which is the quickest way to tell the two cases apart. ## Looking Ahead: 2027 The big variable for next season is student loan offsets. With the Department of Education’s collections pause expected to lift as the new repayment system beds in, the **2027 filing season could see a wave of first-time offsets** hitting borrowers who defaulted during the transition years. If that’s you, the time to fix it is now — rehabilitation takes about ten months. Child support, state debt, and unemployment-overpayment offsets continue as normal. I’ll update this post as the student loan restart is confirmed. ## Common Issues to Watch Out For - **Blaming the IRS for a TOP offset.** The IRS just processes the refund — the Treasury’s offset program and the claiming agency control the money. Disputes go to the agency, not the IRS. - **Missing the BFS notice.** The explanation letter comes from the Bureau of the Fiscal Service, not the IRS — it’s the paper trail for any dispute, so don’t toss it as junk. - **Not filing the injured spouse form.** If a joint refund was taken for one spouse’s debt, Form 8379 recovers the other’s share — an enormous number of eligible filers never file it. - **Confusing offsets with adjustments.** No 898 code on the transcript usually means the IRS changed your return instead — different notice, different dispute process, 60-day clock. - **Expecting WMR to warn you in advance.** It often doesn’t. If you know you have flagged debts, call 1-800-304-3107 before filing season to see what’s queued against your refund. Frequently Asked Questions QWhy was my refund less than the amount I filed for? AMost often a Treasury offset - part of your refund was applied to a past-due debt like child support, defaulted student loans, state taxes, or an unemployment overpayment before payment. Transcript code 898 confirms it. QHow do I find out who took my refund? ACall the Treasury Offset Program call center at 1-800-304-3107. The automated system identifies the agency that claimed the offset and how to contact them. You'll also receive a mailed notice from the Bureau of the Fiscal Service. QWhat do codes 846, 898, and 899 mean together? A846 is your refund issued for the full approved amount; 898 shows the portion diverted to a non-IRS debt; 899 is a reversal of some or all of that offset back to you. QCan the IRS reverse an offset? ANo. TOP offsets are controlled by Treasury and the agency claiming the debt - disputes about the debt's validity go to that agency directly. QMy spouse's debt took our joint refund. Can I get my share back? AYes - file Form 8379, Injured Spouse Allocation, with your return or afterward. Processing typically takes 8-14 weeks and a successful claim appears as code 899 on the transcript. QWhat if I don't owe any debts and my refund was still short? AThen the IRS likely adjusted your return - a corrected credit or math error - and you'll receive a CP12-series notice explaining the change, with 60 days to dispute it. **Categories:** Taxes and Retirement **Tags:** debt, IRS, offset, refund, tax, WMR --- ### [Pension Payout Choice in 2026 — Monthly Annuity or Lump Sum Rollover to an IRA?](https://savingtoinvest.com/should-i-take-my-pension-payout-as-an-annuity-or-lump-sum-rollover-into-an-ira/) **Published:** November 21, 2013 **Author:** Andy **Content:** ### Key Takeaways - The annuity insures against outliving your money; the lump sum offers control, growth potential, and an inheritance - the right answer depends on payout rate, health, and spousal needs. - Compare offers by dividing annual annuity income by the lump sum: payout rates near 7%+ favor the annuity, near 5% favor the lump sum (versus a ~4% safe withdrawal benchmark). - Higher interest rates since 2022 mean smaller lump-sum offers than the 2020-2021 window for the same monthly benefit. - If you take the lump sum, use a direct trustee-to-trustee IRA rollover - a payable-to-you check triggers 20% withholding and the 60-day/10% penalty trap. - Private pensions are PBGC-insured only up to guarantee limits; Social Security (inflation-indexed) plus a non-indexed pension is a common but incomplete inflation hedge. If you’re lucky enough to have a traditional pension — and fewer than one in five private-sector workers are these days — you’ll eventually face one of the bigger money decisions of your life: take it as a **monthly annuity** for as long as you live, or take a **lump sum** and roll it into an IRA you manage yourself. I faced this exact choice when I left a former employer after seven years, so this one is personal. Here’s how I’d think it through in 2026. Covered in this Article: [Toggle](#) - [The Core Tradeoff](#The_Core_Tradeoff) - [Interest Rates Quietly Changed This Math](#Interest_Rates_Quietly_Changed_This_Math) - [How to Actually Compare Your Offer](#How_to_Actually_Compare_Your_Offer) - [If You Take the Lump Sum: The Rollover Rules Matter](#If_You_Take_the_Lump_Sum_The_Rollover_Rules_Matter) - [Looking Ahead: 2027](#Looking_Ahead_2027) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## The Core Tradeoff The annuity gives you a guaranteed check every month for life — you can’t outlive it, you can’t panic-sell it in a market crash, and (with a joint-and-survivor option) it can keep paying your spouse after you’re gone. The catch: most private pension annuities are **not inflation-adjusted**, so a fixed $2,000/month buys noticeably less every decade. The lump sum gives you control, flexibility, and the chance to earn more than the annuity’s implied return — plus whatever’s left goes to your heirs, which an annuity typically doesn’t. The catch: you bear all the investment risk and all the longevity risk, and you have to actually not spend it. The honest framing: the annuity insures you against living long and investing badly. The lump sum bets that you (or your advisor) can beat the annuity’s built-in return and discipline. ## Interest Rates Quietly Changed This Math Here’s what most people miss in 2026: lump sum offers are calculated using IRS-prescribed corporate bond segment rates, and **higher rates mean smaller lump sums** — the higher the discount rate, the less cash it takes today to fund your future payments. With rates still well above their 2020-2021 lows, lump sum offers are meaningfully smaller than they were during that window for the same monthly benefit. The flip side: those same higher rates mean safe alternatives pay real money now — so if you take a lump sum, you don’t need heroic stock returns to compete with the annuity. Run the actual numbers rather than relying on either instinct. ## How to Actually Compare Your Offer Take the annual annuity payment and divide it by the lump sum offer. If your pension pays $18,000/year and the lump sum is $240,000, that’s a **7.5% payout rate**. Ask: could you reliably draw 7.5% from an invested lump sum for life? (Standard safe-withdrawal thinking says ~4% is sustainable.) By that lens, this annuity is hard to beat. If the payout rate were 5%, the lump sum becomes much more competitive. Then adjust for the soft factors: your health and family longevity (long-lived family favors the annuity), your spouse’s needs (check the joint-and-survivor reduction), whether you already have guaranteed income from Social Security covering your fixed costs (check my [Social Security COLA guide](https://savingtoinvest.com/social-security-tax-and-cost-of-living-adjustment-cola/) for how those benefits adjust — unlike most pensions, Social Security IS inflation-indexed), and — be brutally honest — whether a large lump sum would get spent. Also check the insurance angle: private pensions are backstopped by the **PBGC** up to guarantee limits (see [PBGC.gov](https://www.pbgc.gov/wr/benefits/guaranteed-benefits/maximum-guarantee)), which protects most but not all of a large benefit if your former employer’s plan fails. A very large pension from a shaky company nudges toward the lump sum. ## If You Take the Lump Sum: The Rollover Rules Matter **Roll it directly to an IRA (trustee-to-trustee).** A direct rollover keeps the full amount tax-deferred. If you instead take the money payable to yourself, the plan must withhold 20% for taxes, and anything not re-deposited within **60 days** becomes taxable income — plus a **10% early withdrawal penalty** if you’re under 59½. This is the single most expensive mistake in this whole decision. Once it’s in the IRA, the money invests like any retirement account, follows the usual [IRA rules and contribution framework](https://savingtoinvest.com/401k-ira-and-roth-ira-contribution-and-income-limits), and becomes subject to required minimum distributions later. From there you can even buy a private annuity with part of it later if you want to split the difference — annuitizing a portion is a legitimate middle path a lot of retirees land on. **Maria’s example:** Maria, 60, was offered $1,400/month for life or a $210,000 lump sum — an 8% payout rate. Her parents both lived past 90, her husband has minimal retirement savings, and she wanted the 75% joint-and-survivor option ($1,190/month). The high payout rate plus longevity plus spousal need made the annuity the clear call. Her coworker Dan, single with a strong 401(k) and a 5.2% payout offer, took the lump sum rollover instead. Same plan, opposite answers — both right. ## Looking Ahead: 2027 Two things worth watching. First, interest rates: if the Fed continues easing, segment rates will eventually follow, and lump sum offers would grow again — if you’re near retirement and leaning lump-sum, the rate direction matters to your timing. Second, pension de-risking: companies continue buying out former employees with lump-sum windows and transferring plans to insurers, so don’t be surprised if the decision arrives in your mailbox before you go looking for it. I’ll update this post as the rate environment shifts. ## Common Issues to Watch Out For - **Taking a check instead of a direct rollover.** The 20% withholding plus 60-day rule plus potential 10% penalty can vaporize a chunk of your pension. Always do trustee-to-trustee. - **Comparing the lump sum to zero instead of to the annuity’s payout rate.** $240,000 sounds enormous next to $1,500/month until you do the division. - **Ignoring inflation on the annuity.** A fixed payment loses roughly a third of its buying power over 15 years at 2.5% inflation — factor that in, especially if you retire early. - **Skipping the joint-and-survivor analysis.** The single-life option pays more per month but leaves your spouse with nothing — a frequent and painful oversight. - **Deciding under deadline pressure.** Lump-sum buyout windows are often 30-60 days; that’s exactly when a fee-only advisor’s second opinion earns its cost. Frequently Asked Questions QShould I take my pension as an annuity or a lump sum? ADivide the annual annuity payment by the lump-sum offer. Payout rates around 7% or higher are hard to replicate safely on your own (the standard safe withdrawal rate is ~4%), favoring the annuity; rates near 5% make the lump sum more competitive. Health, spousal needs, and other guaranteed income tilt the final call. QHow do interest rates affect my lump sum offer? ALump sums are discounted using IRS corporate-bond segment rates - higher rates produce smaller lump sums. Offers in 2026 remain smaller than the 2020-2021 low-rate window for the same monthly benefit. QHow do I avoid taxes when taking a lump sum? AUse a direct trustee-to-trustee rollover into an IRA. If the check is made out to you personally, 20% is withheld and anything not redeposited within 60 days becomes taxable, plus a 10% penalty if you're under 59½. QIs my pension protected if my former employer fails? APrivate pensions are insured by the PBGC up to annual guarantee limits. Most benefits fall fully within the limits, but very large pensions may not be fully covered - check PBGC.gov for current maximums. QDoes a pension annuity adjust for inflation? AMost private-sector pension annuities do not - the payment is fixed for life. That's a real cost over a long retirement and a key difference from Social Security, which gets annual COLAs. QCan I split the difference? AOften, yes. Some plans offer partial lump sums, and you can always roll the lump sum to an IRA and later annuitize a portion through a private insurer - guaranteeing your fixed costs while keeping the rest invested. **Categories:** Taxes and Retirement **Tags:** IRA, lump sum, pension, roll over --- ### [Banks vs Credit Unions in 2026 — Where Your Money Actually Works Harder](https://savingtoinvest.com/battle-of-the-banks-local-versus-national-and-then-the-credit-unions/) **Published:** July 31, 2010 **Author:** Andy **Content:** ### Key Takeaways - The national average savings rate is around 0.6% APY in 2026 while top online banks pay 4%+ - where you park cash genuinely matters right now. - Credit unions (NCUA-insured) are exactly as federally protected as banks (FDIC) - $250,000 per depositor, per institution, per ownership category. - Credit unions consistently win on loan rates and fees; online banks win on savings yields; national banks win on branch access and convenience. - Most people are best served by a combination: big-bank checking, online high-yield savings, and credit union borrowing. - Savings yields will likely drift lower if Fed rate cuts continue - consider CDs for cash you won't need for a fixed period. Here’s the number that should frame this whole decision in 2026: the national average savings account pays around **0.6% APY**, while top online high-yield savings accounts pay **4% or more**. Where you park your money now matters more than it has in most of the past two decades. The old “big bank vs local bank vs credit union” question is still worth asking — but the honest 2026 answer is that most people end up best served by a combination, not a single institution. Covered in this Article: [Toggle](#) - [The Three (Now Four) Options](#The_Three_Now_Four_Options) - [The Insurance Question (It’s a Wash)](#The_Insurance_Question_Its_a_Wash) - [Where Each One Wins in 2026](#Where_Each_One_Wins_in_2026) - [Looking Ahead: 2027](#Looking_Ahead_2027) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## The Three (Now Four) Options **National banks** (Chase, Bank of America, Wells Fargo) win on branch and ATM footprint, app quality, and product breadth. They lose — badly — on deposit rates: big-bank savings accounts still commonly pay 0.01–0.05% APY. You’re paying for convenience with foregone interest. **Local and regional banks** split the difference: more personal service and often better small-business relationships, with rates that vary widely by institution. **Credit unions** are member-owned nonprofits, and it shows in the fee schedule: lower overdraft and maintenance fees, and typically better rates on loans — especially auto loans and credit cards — than comparable banks. Savings rates at credit unions often beat big banks but usually trail the top online banks; competitive credit union savings accounts in mid-2026 run roughly 2.5–3.5% APY, though some run promotional rates well above that. **Online banks** are the fourth player that’s reshaped this debate. With no branch overhead, they pass the savings to you — this is where the 4%+ high-yield savings accounts live. The tradeoff: no branches, so cash deposits and in-person problems are harder. ## The Insurance Question (It’s a Wash) A worry I still hear about credit unions: “is my money as safe?” Yes. Banks carry **FDIC** insurance and credit unions carry **NCUA** insurance — both federally backed, both covering **$250,000 per depositor, per institution, per ownership category**. Verify any institution at [FDIC.gov](https://www.fdic.gov/resources/deposit-insurance/) or the NCUA’s credit union locator before opening an account, and you can treat safety as equal. ## Where Each One Wins in 2026 Rates on your savings: online banks, decisively. Loan rates (auto especially): credit unions, where the member-owned structure consistently produces below-market APRs. Fee avoidance: credit unions again. Branch access, instant wires, and cash handling: national banks. If you’re rebuilding credit, credit unions also tend to be more forgiving lenders — something I covered in my [FICO score guide](https://savingtoinvest.com/breaking-down-and-improving-your-fico). Credit union membership used to be a real barrier — you needed the right employer or county. These days most people qualify for several through where they live, and some large credit unions have effectively open eligibility via association memberships. **How I’d split it, using Mark as the example:** Mark keeps a checking account at a national bank for direct deposit, cash, and bill pay; his emergency fund sits in an online high-yield savings account earning ~4%; and he financed his last car through a credit union that beat the dealer’s rate by over a full point. Each institution doing the one thing it’s actually best at. One more 2026 note: with the Federal Reserve having eased rates from their peak, today’s 4%+ savings yields won’t last forever. If you have cash you won’t need for a fixed period, comparing CD rates (banks and credit unions both) against your high-yield savings rate is worth ten minutes — locking a rate has more value in a falling-rate environment. That interest is taxable, by the way — it flows into your [tax bracket](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/) as ordinary income via a 1099-INT. ## Looking Ahead: 2027 The direction of savings rates in 2027 depends almost entirely on the Fed. If rate cuts continue, expect top HYSA rates to drift down from the 4%+ range — and the gap between online banks and big banks to narrow slightly while remaining enormous in relative terms. Credit union loan-rate advantages are structural, not rate-cycle-driven, so I’d expect those to persist regardless. What I’m watching: whether big banks finally feel deposit pressure and raise savings rates meaningfully (they’ve resisted for two decades), and any consolidation among smaller credit unions that changes local options. I’ll update the rate context here as the environment shifts. ## Common Issues to Watch Out For - **Leaving your emergency fund at a big bank.** At 0.02% APY versus 4%, a $20,000 emergency fund forfeits about $800 a year. That’s a real cost of inertia. - **Assuming credit unions are inconvenient.** Most participate in shared branching and fee-free ATM networks that rival the big banks’ footprints. - **Chasing a teaser rate without reading terms.** Promotional APYs often apply only to small balances or require direct deposit — check what the rate is on your actual balance. - **Forgetting the $250k insurance cap.** If your cash exceeds $250,000 at one institution, spread it across institutions or ownership categories to stay fully covered. - **Ignoring loan-side savings.** People fixate on deposit rates, but a credit union auto loan that’s 1-1.5 points cheaper often saves more money than any savings-rate difference. Frequently Asked Questions QAre credit unions as safe as banks? AYes. Credit unions carry NCUA insurance and banks carry FDIC insurance - both are federally backed and cover $250,000 per depositor, per institution, per ownership category. QWho pays better savings rates in 2026 - banks or credit unions? AOnline banks lead with 4%+ APY on high-yield savings. Competitive credit unions typically pay roughly 2.5-3.5%, while big national banks still pay near zero (0.01-0.05% is common). QWhere do credit unions actually beat everyone? ALoan rates and fees. Member-owned credit unions consistently offer lower auto loan and credit card APRs than comparable banks, plus lower overdraft and maintenance fees. QIs it hard to join a credit union? ANot anymore. Most people qualify for several through their location alone, and many larger credit unions offer eligibility through inexpensive association memberships. QShould I move all my money to whoever pays the most? AMost people do better splitting roles: checking at a convenient bank, emergency savings at an online high-yield account, and borrowing through a credit union. Each wins at a different job. QIs savings account interest taxable? AYes - it's ordinary income reported on a 1099-INT and taxed at your marginal federal bracket, plus state tax where applicable. **Categories:** Finance and Investing 101 **Tags:** banking, saving --- ### [Should I Refinance My Mortgage in 2026? Rates, Requirements, and the Breakeven Math](https://savingtoinvest.com/should-i-refinance-my-mortgage-and-do-i-qualify/) **Published:** March 5, 2017 **Author:** Andy **Content:** ### Key Takeaways - The average 30-year refinance rate is running around 6.8% as of early July 2026, with 15-year refinances closer to 6.1%. Most homeowners are still locked into rates below 5%, which is why refinance volume stays low even with rates this level. - You'll generally need a credit score of 620+ for a conventional rate-and-term refinance, but scores below 680-740 mean worse pricing or lower maximum loan-to-value; FHA refinances can work with scores as low as 580. - Most lenders want at least 20% equity (80% loan-to-value) for a standard refinance, and cash-out refinances are usually capped at that same 80% LTV. FHA Streamline and VA IRRRL refinances skip the appraisal and equity requirement entirely if you're not taking cash out. - Your debt-to-income (DTI) ratio typically needs to stay under 43%, though some lenders allow up to 50%; cash-out refinances often cap DTI lower, around 36-45% depending on your credit score. - The 2026 conforming loan limit is $832,750 in most areas (up to $1,249,125 in high-cost areas) - refinancing above that pushes you into jumbo territory with stricter underwriting and often a higher rate. - Closing costs typically run 2%-6% of your loan amount. The real question isn't the rate - it's how many months it takes your monthly savings to repay those costs, and whether you'll still be in the home by then. The average 30-year mortgage refinance rate is sitting around 6.8% as of early July 2026, per [Freddie Mac’s Primary Mortgage Market Survey](https://www.freddiemac.com/pmms). That’s not the “lowest since the 1950s” environment this page used to describe — those sub-4% rates are long gone, and most homeowners today are locked into a rate well below what’s currently available. That doesn’t mean refinancing never makes sense in 2026. It means the bar is higher, and the qualification math matters more than it did when rates were near zero. Here’s what actually determines whether you qualify, and how to tell if it’s worth doing. Covered in this Article: [Toggle](#) - [What Refinancing Actually Changes](#What_Refinancing_Actually_Changes) - [Credit Score Requirements](#Credit_Score_Requirements) - [Equity and Loan-to-Value Requirements](#Equity_and_Loan-to-Value_Requirements) - [Debt-to-Income Requirements](#Debt-to-Income_Requirements) - [2026 Conforming and Jumbo Loan Limits](#2026_Conforming_and_Jumbo_Loan_Limits) - [Closing Costs and the Breakeven Math](#Closing_Costs_and_the_Breakeven_Math) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) ## What Refinancing Actually Changes Refinancing replaces your existing mortgage with a new one, ideally at better terms. People refinance for a few different reasons: to lower their rate, to shorten or extend their loan term, to drop mortgage insurance, or to pull cash out of their equity (a cash-out refinance). Each of those has different underwriting requirements. A no-cash-out “rate-and-term” refinance is the easiest to qualify for. A cash-out refinance, where you borrow against your equity for renovations or debt consolidation, gets underwritten more like a new purchase loan. ## Credit Score Requirements **Conventional refinance:** 620 is the typical minimum, but pricing improves substantially as your score climbs. Scores above 740 generally get the best rates and the highest allowable loan-to-value; scores in the 620-679 range often get capped at a lower LTV, meaning you need more equity to qualify at all. **FHA refinance:** Can work with scores as low as 580, and FHA Streamline refinances (for borrowers who already have an FHA loan) often skip the credit check and appraisal entirely if you’re not taking cash out. **Cash-out refinances:** Usually need a higher score than a rate-and-term refinance — commonly 640-680 minimum — since pulling equity out increases the lender’s risk. ## Equity and Loan-to-Value Requirements Most conventional lenders want at least **20% equity**, based on a current appraisal, not what you originally paid. If you’re underwater or close to it, you likely won’t qualify for a standard refinance. Cash-out refinances are typically capped at 80% loan-to-value, meaning you need to keep at least 20% equity in the home even after pulling cash out. There’s an important exception: FHA Streamline and VA Interest Rate Reduction Refinance Loans (IRRRL) are built specifically to lower your rate on an existing government-backed loan, and generally don’t require a new appraisal or equity check at all — because you’re not borrowing more, just repricing what you already owe. ## Debt-to-Income Requirements Lenders generally want your **DTI ratio under 43%**, though some conventional programs allow up to 50% for otherwise strong borrowers. Cash-out refinances are stricter — often capped around 36-45% depending on your credit score and loan-to-value. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get updates as refinance rates and requirements shift.* ## 2026 Conforming and Jumbo Loan Limits The [2026 conforming loan limit](https://www.fhfa.gov/news/news-release/fhfa-announces-conforming-loan-limit-values-for-2026) is **$832,750** in most of the country, and up to **$1,249,125** in high-cost areas (Alaska, Hawaii, Guam, and the U.S. Virgin Islands go even higher, to $1,873,675). Refinancing within that limit means your loan can be sold to Fannie Mae or Freddie Mac, which generally means better pricing. Refinance above the conforming limit and you’re in **jumbo loan** territory — stricter underwriting, often a larger down payment or equity cushion required, and historically a rate premium of 0.25% to 0.5% over conforming loans, though that gap has narrowed in recent years. For the full breakdown of how FHA and conventional loan limits compare, see [FHA vs. Conventional Loans in 2026](https://savingtoinvest.com/fha-vs-conventional-home-loan-comparing/). ## Closing Costs and the Breakeven Math Refinance closing costs typically run **2% to 6%** of your loan amount, covering the appraisal, origination fee, title insurance, and other standard mortgage costs. On a $400,000 refinance, that’s roughly $8,000 to $24,000. The number that actually matters is your **breakeven point** — how many months it takes your monthly savings to cover those closing costs. Divide your total closing costs by your monthly savings to get the answer. **Priya** refinanced a $450,000 balance from 7.6% to 6.5% in early 2026. Her closing costs ran about 2% ($9,000), and the lower rate saved her roughly $340 a month — a breakeven of about 26 months. Since she plans to stay in the home at least five more years, the math worked clearly in her favor. **Tom** applied for a cash-out refinance to consolidate credit card debt, but his DTI came in at 48% once the new loan was included — above his lender’s 45% cap for cash-out refinances. He was approved instead for a smaller cash-out amount that kept his DTI under the limit, rather than the full amount he originally requested. ## Common Issues to Watch Out For **Confusing today’s rate environment with 2020-2021.** If you locked in a rate below 4% during the pandemic-era refinance wave, a 6.8% refinance almost never makes sense purely to lower your rate. Refinancing today usually makes more sense for cash-out needs, dropping mortgage insurance, or getting out of an adjustable-rate mortgage before it resets. **Underestimating how much a lower credit score costs you.** The difference between a 620 and a 760 credit score on the same loan can mean a meaningfully different rate — often a quarter to half a percentage point — which compounds over a 30-year term. **Forgetting that a second mortgage or HELOC complicates things.** If you have a home equity loan or line of credit, the lender holding it typically has to agree to “subordinate” it behind your new first mortgage before you can refinance. Some lenders are reluctant to do this, which can stall or block a refinance entirely. **Not shopping multiple lenders.** Refinance rates and closing costs vary meaningfully between lenders for the exact same borrower profile. Getting quotes from three or more lenders within a short window (rate-shopping inquiries within about 14-45 days typically count as a single inquiry for credit scoring purposes) is worth the extra effort. **Ignoring the tax and opportunity-cost angle.** Mortgage interest may be tax-deductible depending on your situation, and cash you’d spend on closing costs has an opportunity cost if it could otherwise be invested. Run the full numbers, not just the new monthly payment. ## Looking Ahead: 2027 Outlook Most forecasters expect 30-year rates to stay in a roughly 6%-6.5% range through the rest of 2026, with only modest movement likely into 2027 absent a larger economic shift. I’ll be watching Fed policy signals and the 10-year Treasury yield, since mortgage rates track that more closely than the Fed funds rate itself. I’m also watching whether the [2026 Housing Affordability Bill](https://savingtoinvest.com/2026-housing-affordability-bill-what-the-21st-century-road-to-housing-act-means/) becomes law — it would tie FHA loan limits to automatic annual adjustments, which could affect refinance eligibility at the margins in high-cost areas. If you’re deciding whether now is the right time, your own [credit score](https://savingtoinvest.com/breaking-down-and-improving-your-fico/) and how long you plan to stay in the home matter more than trying to time the broader rate market. **Related reading:** - [How Your FICO Credit Score Actually Works in 2026 (and How to Raise It)](https://savingtoinvest.com/breaking-down-and-improving-your-fico/) - [FHA vs. Conventional Loans in 2026: Down Payments, Mortgage Insurance, and Which Costs Less](https://savingtoinvest.com/fha-vs-conventional-home-loan-comparing/) - [2026 Housing Affordability Bill: What the 21st Century ROAD to Housing Act Means](https://savingtoinvest.com/2026-housing-affordability-bill-what-the-21st-century-road-to-housing-act-means/) ``` Note: This post may contain affiliate links to recommended partners. This helps us pay for the content and hosting of this site, at no extra cost to you. So thanks in advance if you click through! As always, all of our content is based on objective analysis, and the opinions are our own & for informational purposes only. ``` Frequently Asked Questions QWhat credit score do I need to refinance my mortgage in 2026? A620 is the typical minimum for a conventional refinance, though better pricing kicks in around 740+. FHA refinances can work with scores as low as 580, and cash-out refinances usually need a higher score than a rate-and-term refinance. QHow much equity do I need to refinance? AMost lenders want at least 20% equity (80% loan-to-value) for a standard or cash-out refinance. FHA Streamline and VA IRRRL refinances, which don't involve taking cash out, typically skip the equity requirement entirely. QWhat is the 2026 conforming loan limit? A$832,750 in most of the country, up to $1,249,125 in high-cost areas, and $1,873,675 in Alaska, Hawaii, Guam, and the U.S. Virgin Islands. QHow much does it cost to refinance a mortgage? ATypically 2% to 6% of your loan amount, covering the appraisal, origination fees, title insurance, and other standard closing costs. QHow do I calculate my refinance breakeven point? ADivide your total closing costs by your expected monthly savings. If closing costs are $9,000 and you save $340 a month, your breakeven point is about 26 months - refinancing makes the most sense if you'll stay in the home well beyond that point. QIs it worth refinancing if rates are around 6.8%? AIt depends on your current rate and goals. If you're already below 5%, refinancing purely to lower your rate rarely makes sense right now. It can still make sense for cash-out needs, dropping mortgage insurance, or getting out of an adjustable-rate loan before it resets. **Categories:** Real Estate and Mortgages **Tags:** credit, home, loan, mortgage, refinance --- ### [FHA vs. Conventional Loans in 2026: Down Payments, Mortgage Insurance, and Which Costs Less](https://savingtoinvest.com/fha-vs-conventional-home-loan-comparing/) **Published:** May 15, 2009 **Author:** Andy **Content:** ### Key Takeaways - The 2026 FHA loan limit is $541,287 in most areas (up to $1,249,125 in high-cost markets). The 2026 conventional conforming loan limit is $832,750 (up to $1,249,125 in high-cost areas). - FHA loans allow a 3.5% down payment with a credit score of 580+ (10% down if your score is 500-579). Conventional loans can go as low as 3% down through programs like HomeReady or Home Possible, but typically require a 620+ credit score. - FHA mortgage insurance (MIP) often lasts the life of the loan unless you put down 10%+ or refinance. Conventional PMI drops off automatically once you hit 78% loan-to-value, regardless of your down payment. - FHA's upfront MIP is 1.75% of the loan amount, plus an annual premium (commonly around 0.55%). Conventional PMI runs roughly 0.2%-1.5% annually, priced off your credit score and down payment. - Higher credit scores (700+) generally get better pricing on conventional loans. FHA underwriting is more forgiving of past credit problems, including a bankruptcy discharged as recently as 2 years ago. - As of publication, the average 30-year fixed rate is running around 6.5%, and that same rate typically applies whether you go FHA or conventional - the loan type changes your insurance and down payment costs, not usually your interest rate. The 2026 FHA loan limit just rose to **$541,287** in most of the country, and conventional conforming loans now top out at **$832,750**. Beyond those limits, the core FHA-versus-conventional decision hasn’t changed: it comes down to your down payment, your credit score, and how mortgage insurance is structured on each. Here’s an updated, side-by-side look at both, so you can figure out which one actually costs less for your situation. Covered in this Article: [Toggle](#) - [What Is an FHA Loan?](#What_Is_an_FHA_Loan) - [What Is a Conventional Loan?](#What_Is_a_Conventional_Loan) - [2026 Loan Limits](#2026_Loan_Limits) - [Down Payment Comparison](#Down_Payment_Comparison) - [Credit Score Requirements](#Credit_Score_Requirements) - [Mortgage Insurance: MIP vs. PMI](#Mortgage_Insurance_MIP_vs_PMI) - [Two Examples](#Two_Examples) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027 Loan Limits](#Looking_Ahead_2027_Loan_Limits) ## What Is an FHA Loan? An FHA loan is a mortgage insured by the Federal Housing Administration, a part of HUD. The government doesn’t lend the money directly — it insures the lender against default, which is why FHA loans come with lower down payment and credit score requirements than most conventional options. That lower risk to the lender is exactly why FHA loans can offer more flexible qualifying terms to borrowers who don’t have a large down payment saved or a long, clean credit history. ## What Is a Conventional Loan? A conventional loan isn’t backed by any government agency. It relies purely on your credit, income, and down payment to satisfy the lender (or Fannie Mae/Freddie Mac, if the loan is sold to them after closing). Conventional loans that fall within the conforming loan limit can be sold to Fannie Mae or Freddie Mac. Loans above that limit are called **jumbo loans** and come with their own, usually stricter, underwriting rules. ## 2026 Loan Limits Loan TypeStandard AreasHigh-Cost AreasFHA$541,287$1,249,125Conventional (conforming)$832,750$1,249,125 Alaska, Hawaii, Guam, and the U.S. Virgin Islands get an even higher special-area ceiling of **$1,873,675**. Both FHA and conventional high-cost ceilings are capped at the same number nationally — $1,249,125 — since FHA’s ceiling is set at 150% of the standard conforming limit. ## Down Payment Comparison **FHA: 3.5% minimum**, provided your credit score is 580 or higher. If your score falls between 500 and 579, FHA still allows financing, but requires 10% down instead. **Conventional: as low as 3%** through Fannie Mae’s HomeReady or Freddie Mac’s Home Possible programs, aimed at first-time and moderate-income buyers. Outside those programs, 5% is the more typical conventional minimum. Put down 20% and you avoid mortgage insurance altogether. FHA also allows your entire down payment to be gifted from a family member, employer, or approved nonprofit — conventional loans allow gifts too, but with more restrictions depending on the program. ## Credit Score Requirements **FHA:** 580+ for the 3.5% down payment option; 500-579 requires 10% down. FHA underwriters are also more forgiving of past credit problems — a bankruptcy discharged as recently as 2 years ago can still qualify for maximum financing with a reasonable explanation. **Conventional:** 620 is the typical minimum. But the rate you’re actually offered improves substantially as your score climbs — borrowers around 700-720 get meaningfully better pricing, and 740+ generally captures the best rates and lowest PMI costs available. This is the single biggest factor that pushes people toward FHA: if your score is in the 580-660 range, FHA often gets you approved at better terms than a conventional loan would. ## Mortgage Insurance: MIP vs. PMI This is where the two loan types diverge the most, and where I think people most often get surprised after closing. **FHA MIP** has two parts: an upfront premium of **1.75%** of your loan amount (which most borrowers roll into the loan rather than pay in cash), plus an annual premium, generally around **0.55%** for most borrowers, though it ranges from 0.15% to 0.75% depending on your loan amount and loan-to-value ratio. Here’s the part that catches people off guard: if you put down less than 10%, FHA’s annual MIP **lasts for the entire life of the loan**. The only way to get rid of it is to refinance into a conventional loan once you have enough equity. If you put down 10% or more, MIP drops off automatically after 11 years. **Conventional PMI** runs roughly **0.2% to 1.5%** annually, priced based on your credit score and loan-to-value ratio — better credit means cheaper PMI. Unlike FHA MIP, conventional PMI comes off automatically once your loan balance hits 78% of the home’s original value, and you can request removal yourself once you reach 80%. By law, it must be removed by the midpoint of your loan term regardless (month 180 on a 30-year loan) as long as you’re current on payments. ## Two Examples **Mark, credit score 610:** Mark has saved 5% for a down payment but his credit score sits at 610 — above FHA’s 580 cutoff, but below the 620 conventional minimum most lenders use. FHA is really his only path right now. He’ll pay the 1.75% upfront MIP and an ongoing annual premium that will likely follow him for the life of the loan unless he refinances later once his score and equity improve. **Sarah, credit score 760:** Sarah has excellent credit and has saved 20% for a down payment on a $450,000 home. She qualifies easily for a conventional loan, avoids mortgage insurance entirely by hitting the 20% threshold, and gets one of the best rates her lender offers because of her credit score. For her, conventional is the clear, lower-cost choice. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) and I’ll update this page as new loan limits and MIP/PMI rules are announced.* ## Common Issues to Watch Out For **Assuming conventional always means 20% down.** I hear this a lot, and it’s outdated. HomeReady and Home Possible have offered 3% down conventional financing for years now — it’s just less heavily advertised than the FHA 3.5% option. **Not realizing FHA MIP can outlast the loan itself.** Borrowers sometimes budget for FHA MIP assuming it disappears after a few years, the way PMI often does. If you put less than 10% down, it doesn’t — plan around a refinance if you want it gone. **Forgetting the upfront MIP is separate from the annual premium.** The 1.75% upfront charge and the ongoing annual percentage are two different costs that both apply to the same FHA loan. **Comparing quotes without factoring in insurance costs.** A slightly higher conventional PMI rate can sometimes cost more than FHA’s MIP, or vice versa, depending on your specific credit score and down payment. Always compare full monthly payments, not just the interest rate. **Not shopping the PMI rate.** Conventional PMI pricing varies by lender and PMI provider — it’s worth asking your loan officer whether they’ve checked multiple mortgage insurers, since the difference can be meaningful over several years. ## Looking Ahead: 2027 Loan Limits FHFA typically announces the next year’s conforming loan limit in late November, based on its House Price Index showing how average home prices changed over the preceding year. FHA’s loan limits follow shortly after, usually in early December, since they’re calculated directly off the new conforming number. Given how loan limits have moved the last few years, I’d expect another increase for 2027, likely in the same rough range as this year’s roughly 3% bump — though that’s a projection, not a guarantee, and it depends entirely on how home prices trend through the rest of 2026. I’ll update this page once FHFA and HUD make their 2027 announcements. For more on qualifying for either loan type, see [how your FICO credit score actually works and how to raise it](https://savingtoinvest.com/breaking-down-and-improving-your-fico/) — the difference between a 610 and a 660 score can change which loan type makes sense for you. And if you’re watching for policy changes that could affect financing more broadly, the [2026 housing affordability bill](https://savingtoinvest.com/2026-housing-affordability-bill-what-the-21st-century-road-to-housing-act-means/) currently sitting on the president’s desk includes provisions that would tie FHA loan limits to automatic annual adjustments going forward. Official current figures: [HUD’s 2026 FHA loan limit announcement](https://www.hud.gov/news/hud-no-25-145) and [FHFA’s 2026 conforming loan limit announcement](https://www.fhfa.gov/news/news-release/fhfa-announces-conforming-loan-limit-values-for-2026). Frequently Asked Questions QWhat is the 2026 FHA loan limit? A$541,287 in most areas, up to $1,249,125 in high-cost markets. Alaska, Hawaii, Guam, and the U.S. Virgin Islands have a special ceiling of $1,873,675. QWhat is the 2026 conventional (conforming) loan limit? A$832,750 in most areas, up to $1,249,125 in high-cost areas - the same high-cost ceiling as FHA, since FHA's ceiling is set at 150% of the conforming baseline. QCan I get a conventional loan with less than 20% down? AYes. Programs like Fannie Mae's HomeReady and Freddie Mac's Home Possible allow as little as 3% down. Outside those programs, 5% is a more typical conventional minimum. You'll pay PMI until you reach 20-22% equity either way. QDoes FHA mortgage insurance ever go away? AOnly if you put down 10% or more (it drops after 11 years) or if you refinance into a different loan. With less than 10% down, FHA's annual MIP lasts for the life of the loan. QWhat credit score do I need for an FHA loan versus a conventional loan? AFHA allows a 580 credit score for 3.5% down (or 500-579 with 10% down). Conventional loans typically require at least 620, with better pricing kicking in around 700+. QIs FHA or conventional cheaper overall? AIt depends on your credit score and down payment. Lower credit scores and smaller down payments usually favor FHA. Higher credit scores, especially with 10%+ down, often make conventional cheaper because of lower or removable mortgage insurance. **Categories:** Real Estate and Mortgages --- ### [Can My Congressman Help With a Delayed Tax Refund or Missing Government Payment? How Casework Works in 2026](https://savingtoinvest.com/can-i-call-my-congressman-or-representative-for-help-with-my-tax-refund-or-other-missing-and-delayed-payments/) **Published:** May 19, 2022 **Author:** Andy **Content:** ### Key Takeaways - Congressional offices run free constituent casework that can unstick delayed IRS refunds, Social Security, VA, and other government payments - answered on deadlines agencies don't give the public. - Escalate only after 60+ days of documented dead ends through normal channels, including the Taxpayer Advocate Service for tax cases. - Federal payments go to your U.S. Representative or Senator; state payments like unemployment go to your state legislator. - You must sign a Privacy Act release before the office can discuss your case with any agency - it's standard procedure. - Casework gets stalled cases looked at; it can't change legal determinations or speed up processing that isn't actually stuck. Yes — and with IRS phone lines answering only about 21% of calls last filing season, this old-school escalation path is getting a workout. Every congressional office runs **casework**: staff whose entire job is prying constituent problems loose from federal agencies, including the IRS, Social Security Administration, VA, and state unemployment agencies (via your state representatives). It’s free, it’s what they’re elected to do, and offices resolve thousands of these cases a year. But it works best as a *last* resort, used the right way at the right time. Here’s the 2026 playbook. Covered in this Article: [Toggle](#) - [When to Escalate to Your Representative](#When_to_Escalate_to_Your_Representative) - [How to Find and Contact Your Representative](#How_to_Find_and_Contact_Your_Representative) - [What to Include for the Fastest Result](#What_to_Include_for_the_Fastest_Result) - [What a Congressional Office Can and Can’t Do](#What_a_Congressional_Office_Can_and_Cant_Do) - [Looking Ahead: 2027](#Looking_Ahead_2027) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## When to Escalate to Your Representative The rough rule I give readers: exhaust the normal channels first, then escalate after **60+ days** of documented dead ends. For a tax refund, that means you’ve checked your [transcript](https://savingtoinvest.com/using-your-irs-transcript-to-get-your-tax-return-and-refund-processing-status-and-key-dates/), responded to any letters, tried the IRS phone line, and ideally tried the [Taxpayer Advocate Service](https://savingtoinvest.com/contact-a-tax-advocate-to-help-get-your-refund-released-from-the-irs/) — which is itself the IRS’s formal escalation channel and often the faster of the two. Congressional offices and TAS actually work the same pipeline for tax cases: a congressional inquiry about your refund typically gets routed into TAS with a congressional flag on it. That flag matters — agencies answer congressional inquiries on deadlines they don’t offer the general public — but it means the congressman path shines brightest when TAS itself is backed up or unresponsive, or when your problem spans multiple agencies. Federal payments (IRS refunds, Social Security, VA benefits) go to your **U.S. Representative or Senator**. State payments (unemployment benefits, state tax refunds, child support enforcement) go to your **state legislator** — a distinction that trips people up constantly. ## How to Find and Contact Your Representative Use the official [find-your-representative tool at house.gov](https://www.house.gov/representatives/find-your-representative) — enter your ZIP code and you’re done. Senators are listed at senate.gov, and your state legislature’s site has the state-level equivalent. Go to the representative’s website and look for “Help with a Federal Agency,” “Casework,” or “Constituent Services.” Most offices have a dedicated form. You’ll be asked to sign a **privacy release form** (required under the Privacy Act before any agency will discuss your case with the office) — this is standard, not a red flag. ## What to Include for the Fastest Result Caseworkers triage dozens of open files; complete submissions jump the queue. Include: a tight timeline of what happened and when, what you’ve already tried (dates of calls, letters responded to, TAS case number if you have one), copies of relevant notices, your contact details, and one clear sentence on the hardship the delay is causing — hardship moves cases up every queue in government. **Rosa’s case:** Rosa’s refund sat frozen for five months after she responded to an identity letter that the IRS said it never received. Two calls and a TAS request went nowhere. Her congressman’s office had her sign the privacy release on a Tuesday; the caseworker’s inquiry confirmed her response had been misfiled, and her refund was issued within about six weeks. ## What a Congressional Office Can and Can’t Do They can get status answers on a deadline, flag misrouted or stalled cases, and push an agency to actually look at your file. They **cannot** overturn a legal determination, force the IRS to pay a refund you’re not owed, change the outcome of an audit, or speed up normal processing that isn’t actually stuck. Expect an acknowledgment within days and substantive movement in 30–60 days. And don’t shotgun it — filing with your Representative *and* both Senators simultaneously just triples the paperwork for the same inquiry pipeline. ## Looking Ahead: 2027 With IRS staffing down roughly 27% from recent peaks and TAS’s own intake climbing, I expect congressional casework volume on tax delays to keep rising next season. The offices know it too — most have beefed up caseworker staffing since the pandemic-era backlogs. What I’m watching: whether the Taxpayer Advocate’s push to improve the Taxpayer Protection Program’s 19% phone answer rate lands before the 2027 season. If it does, fewer identity-verification cases will need this escalation at all. I’ll update this post as the picture changes. ## Common Issues to Watch Out For - **Escalating too early.** Offices will ask what you’ve already tried; “I filed six weeks ago” gets you sent back to normal channels. 60+ days of documented attempts is the threshold. - **Contacting the wrong level of government.** Unemployment and state tax refunds belong with state legislators, not your U.S. Congressman. - **Skipping the privacy release.** Nothing happens until it’s signed — federal agencies legally can’t discuss your case with the office without it. - **Sending a vent instead of a file.** A timeline, notice copies, and a hardship sentence get worked; an angry paragraph gets a form reply. - **Expecting a different outcome, not a faster answer.** Casework unsticks processes; it doesn’t change what the law says you’re owed. Frequently Asked Questions QCan my congressman really help with a delayed tax refund? AYes. Congressional offices run casework services that make formal inquiries to the IRS, which typically get routed to the Taxpayer Advocate Service with a congressional flag - and agencies answer those on deadlines they don't offer the public. QWhen should I contact my representative about a payment problem? AAfter 60+ days of documented attempts through normal channels - calls, letter responses, and ideally a Taxpayer Advocate request. Offices send early-stage cases back to the standard process. QDo I contact my U.S. Congressman or my state representative? AFederal payments (IRS refunds, Social Security, VA) go to your U.S. Representative or Senator. State payments (unemployment benefits, state tax refunds) go to your state legislator. QWhat information does a congressional caseworker need? AA signed Privacy Act release form, a timeline of the problem, what you've already tried with dates, copies of relevant notices, and a sentence on the hardship the delay is causing. QHow long does congressional casework take? AMost offices acknowledge within days and produce substantive movement within 30-60 days, depending on the agency and case complexity. QIs the Taxpayer Advocate Service better than contacting my congressman? AFor tax cases, try TAS first - it's the IRS's formal escalation channel and often faster. The congressional route adds weight when TAS is backed up, unresponsive, or your problem spans multiple agencies. **Categories:** Taxes and Retirement --- ### [When Will I Get My Tax Refund? 2026 Processing Times and What's Ahead for 2027](https://savingtoinvest.com/when-will-i-get-my-tax-refund/) **Published:** March 20, 2011 **Author:** Andy **Content:** ### Key Takeaways - Most 2026 refunds arrive in under 21 days with e-file plus direct deposit - over 80% made that window this season; paper returns take 6-8 weeks. - Average refunds are up more than 10% this year (roughly $3,400-$3,800), largely from One Big Beautiful Bill Act tax cuts hitting returns for the first time. - EITC and Additional CTC refunds are held until mid-February by the PATH Act regardless of how early you file. - Past 21 days with no movement, check your tax transcript (code 846 = refund issued) and IRS online account for notices before trying the phone. - Identity verification holds are 2026's biggest delay driver - a 5071C letter freezes processing until you verify, then up to 9 more weeks. The short answer for 2026: if you e-file with direct deposit and nothing flags your return, the IRS issues most refunds in **under 21 days** — and over 80% of refunds this season went out inside that window. Paper filers and paper-check refunds wait considerably longer, typically 6 to 8 weeks. One more piece of good news this year: refunds are noticeably bigger. The average refund this season ran around $3,400–$3,800 depending on the week measured — up more than 10% over last year, driven largely by the new tax cuts in Trump’s One Big Beautiful Bill Act flowing through returns for the first time. Per the [IRS’s filing season statistics](https://www.irs.gov/newsroom/filing-season-statistics-by-year), total refunds passed $202 billion this season. Covered in this Article: [Toggle](#) - [The 2026 Refund Timeline, Step by Step](#The_2026_Refund_Timeline_Step_by_Step) - [The PATH Act Hold: Mid-February at the Earliest](#The_PATH_Act_Hold_Mid-February_at_the_Earliest) - [Why Your Refund Might Take Longer Than 21 Days](#Why_Your_Refund_Might_Take_Longer_Than_21_Days) - [Checking Your Refund Status](#Checking_Your_Refund_Status) - [Looking Ahead: 2027 Filing Season](#Looking_Ahead_2027_Filing_Season) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## The 2026 Refund Timeline, Step by Step Once you e-file, acceptance usually comes within 24–48 hours. Acceptance just means your return passed basic checks and entered the IRS master file — the processing clock starts there. From acceptance, the standard path is: return processed, refund approved, refund sent. For specific week-by-week payment date estimates, I keep the [IRS refund schedule and direct deposit cycle chart](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) updated separately — that’s the companion page to bookmark during filing season. Direct deposit lands 1–5 business days after the IRS sends it, depending on your bank. Paper checks add 1–2 weeks of mail time. ## The PATH Act Hold: Mid-February at the Earliest If you claim the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit, federal law — the PATH Act — bars the IRS from issuing your refund before mid-February, no matter how early you file. In practice, PATH refunds start moving in the last week of February. This catches early filers off guard every single year. Filing in late January with EITC doesn’t get you paid in early February; it just puts you at the front of the line when the hold lifts. ## Why Your Refund Might Take Longer Than 21 Days The 21-day estimate assumes a clean return. The common exceptions in 2026: **Identity verification holds** are the big one this season. If the IRS flags your return, you’ll get a [5071C letter](https://savingtoinvest.com/i-filed-my-tax-return-it-was-accepted-yet-i-still-havent-seen-any-sign-of-my-refund-irs-identity-review-and-validation-the-likely-reason/) and nothing moves until you verify — then up to 9 more weeks. **Review notices** like the CP05 pause your refund 60+ days while the IRS checks income and withholding against employer records. **Errors and mismatches** — income that doesn’t match W-2s/1099s, credit calculation issues — trigger adjustment notices and add weeks. **Refund offsets** for past-due federal/state debts, child support, or [defaulted student loans](https://savingtoinvest.com/can-my-delinquent-student-loan-debt-be-offset-against-my-irs-tax-refund/) can reduce or absorb the refund entirely. If you’re past 21 days with no movement, don’t start with the phone. Check your [tax transcript](https://savingtoinvest.com/using-your-irs-transcript-to-get-your-tax-return-and-refund-processing-status-and-key-dates/) — code 846 is the definitive “refund issued” signal — and your IRS online account for notices. I’ve covered [what to do when there’s no refund after 21 days](https://savingtoinvest.com/no-tax-refund-after-21-days-tips-on-contacting-the-irs/) in detail. **Two quick examples.** Sarah e-filed a plain W-2 return with direct deposit on February 2; accepted February 3, refund deposited February 18 — 15 days, right on the standard track. Mark filed January 27 with EITC; his refund was PATH-held until mid-February and landed February 27 — a month after filing, but exactly on the normal PATH schedule. ## Checking Your Refund Status WMR and IRS2Go update once daily, overnight. The tools show the three-stage tracker: Return Received → Refund Approved → Refund Sent. Your transcript updates on a weekly or daily cycle depending on your [cycle code](https://savingtoinvest.com/irs-refund-cycle-code-and-dates-using-tax-transcript-to-get-master-file-information-for-your-direct-deposit-date/), and generally shows movement a day or two before WMR does. If you need to talk to a human, budget real time — the IRS answered only about 21% of calls last filing season with its workforce down roughly 27%. Online tools first, phone second. ## Looking Ahead: 2027 Filing Season I’d expect the 2027 season to open in late January (the 2026 season opened January 26), with the under-21-day standard holding for clean e-filed returns. Two things I’m watching: First, refund sizes. 2027 will be the second season with the One Big Beautiful Bill Act fully baked into withholding tables — so the double-digit refund jumps of 2026 should moderate, since paychecks rather than refunds will have carried more of the benefit through the year. Second, IRS capacity. If staffing stays at current levels, expect identity verification and review holds to remain the main source of multi-month delays, not standard processing. The PATH Act mid-February hold is statutory and isn’t going anywhere. I’ll update this page when the IRS announces the official 2027 season opening date, typically in early January. ## Common Issues to Watch Out For - **Confusing “accepted” with “approved.”** Acceptance within 48 hours is just the entry gate; approval is the stage that actually precedes payment. - **Filing early with EITC and panicking in early February.** The PATH Act hold means mid-to-late February is normal, not a problem. - **Checking WMR ten times a day.** It updates once, overnight. Your transcript is the better leading indicator. - **Missing that a notice went out.** If you’re past 21 days, check your IRS online account — a letter you haven’t seen may be the entire holdup. - **Expecting the full refund when you have old debts.** Offsets for child support, student loans, and back taxes come out before the money reaches you. Frequently Asked Questions QHow long does it take to get a tax refund in 2026? AUnder 21 days for most e-filed returns with direct deposit - over 80% of refunds met that window this season. Paper returns and paper checks run 6 to 8 weeks. QWhy is my refund bigger this year? AAverage refunds rose more than 10% in 2026, mainly because the One Big Beautiful Bill Act's tax cuts applied to full-year income for the first time, and withholding tables hadn't fully caught up. QWhen do EITC refunds come in 2026? AThe PATH Act bars the IRS from issuing EITC and Additional Child Tax Credit refunds before mid-February. Most PATH-held refunds arrive in the last week of February, even for January filers. QMy refund is past 21 days. What should I check first? AYour tax transcript and IRS online account. Code 846 on the transcript means the refund was issued; a notice in your online account means the IRS needs something - often identity verification - before anything moves. QHow long after WMR says 'Refund Sent' until the money arrives? ADirect deposits typically land within 1-5 business days depending on your bank. Paper checks add one to two weeks of mail time. QDoes calling the IRS speed up a refund? ANo - agents see largely the same status you do, and only about 21% of calls were answered last season. Calling matters only when a notice specifically asks you to, or when you're well past normal timelines. **Categories:** Taxes and Retirement **Tags:** 2016, 2017, Filing, IRS, refund, Schedule, software, tax --- ### [“We Received Your Return and Sent You a Letter Requesting More Information” — What This WMR Message Means in 2026](https://savingtoinvest.com/we-received-your-return-and-sent-you-a-letter-requesting-more-information-what-this-means-for-your-refund-processing/) **Published:** February 8, 2024 **Author:** Andy **Content:** ### Key Takeaways - The WMR 'letter requesting more information' message means your refund is paused pending correspondence - most commonly identity verification (5071C) or income review (CP05) in 2026. - Check your IRS online account immediately - most notices appear digitally before the paper letter arrives. - The letter determines your timeline: identity verification takes up to 9 weeks after you verify; CP05-style reviews run 60+ days with no action needed. - Respond once and completely - partial responses restart the up-to-60-day review cycle. - Response deadlines run from the notice date printed on the letter, not from when you received it. Plenty of filers checking Where’s My Refund (WMR) or IRS2Go this season have hit the same status: the IRS received your return, but a letter requesting more information is on its way to you. Your refund is on pause — but this message is a to-do item, not a disaster. Here’s what triggers it, what the letter is likely to say, and how to get your refund moving again as quickly as possible. Covered in this Article: [Toggle](#) - [Why the IRS Requests More Information](#Why_the_IRS_Requests_More_Information) - [What to Do When You See This Message](#What_to_Do_When_You_See_This_Message) - [How Long Will My Refund Take Now?](#How_Long_Will_My_Refund_Take_Now) - [Looking Ahead: 2027 Filing Season](#Looking_Ahead_2027_Filing_Season) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## Why the IRS Requests More Information A handful of situations generate this message, and they’re worth knowing because they tell you what to expect before the letter even arrives. **Identity verification** is the most common in 2026. The IRS has leaned hard on fraud and data-matching filters, and flagged returns get suspended until you verify — usually via a [5071C letter](https://savingtoinvest.com/i-filed-my-tax-return-it-was-accepted-yet-i-still-havent-seen-any-sign-of-my-refund-irs-identity-review-and-validation-the-likely-reason/). If this is your situation, nothing happens until you act, so speed matters. **Income or withholding review.** If the IRS wants to verify income, withholding, or credits against employer and third-party records, you’ll typically get a [CP05 notice](https://savingtoinvest.com/what-is-a-cp05-tax-notice-and-should-i-worry-when-i-get-this-letter-from-the-irs-around-my-tax-return-and-refund-payment/). Often no action is needed — but the letter tells you which case you’re in. **Missing or incomplete items.** A missing form, an unsigned return, or a schedule that doesn’t reconcile can all trigger a request. Paper filers see this more than e-filers, since tax software catches most of it before submission. **Unusual income or deductions.** Large charitable deductions, business losses, or income that doesn’t match what employers reported yet can prompt a documentation request. ## What to Do When You See This Message First, don’t wait for the mail. Log into your [IRS online account](https://www.irs.gov/payments/online-account-for-individuals) and check the Notices and Letters section — most notices appear there before the paper copy arrives, and lost mail is one of the most common ways refunds stay frozen for months. When you have the letter, read it completely before doing anything. It will state exactly what the IRS needs, the deadline (typically 30 days from the notice date), and how to respond — online, by fax, or by mail. Then respond once, completely. Gather everything requested — W-2s, 1099s, proof of withholding, whatever the letter lists — and send it together. Partial responses restart the review cycle and add weeks. **Dana’s case:** Dana’s WMR showed the letter message in late February. Her online account showed a CP05 — income verification, no action required. Her refund arrived in mid-May, about 75 days after the notice date, without her sending anything. Her coworker got the same message but a 5071C; he verified online the next day and was paid in five weeks. Same WMR message, completely different paths — the letter is what tells you which one you’re on. ## How Long Will My Refund Take Now? It depends on the letter. For no-action review notices like the CP05, the IRS asks for 60 days from the notice date before you even contact them. For identity verification, official guidance is up to 9 weeks after you verify. For document requests, the IRS generally takes up to 60 days to review your response and close the case. I’ve laid out the full [notice response and refund payment timeline here](https://savingtoinvest.com/how-long-do-i-have-to-wait-after-an-irs-notice-to-get-my-tax-refund/) — including what happens if you disagree with the outcome. One thing to budget for: IRS phone help remains hard to reach, with only about 21% of calls answered last filing season. Your online account and the specific number printed on your notice beat the general line every time. ## Looking Ahead: 2027 Filing Season I expect this WMR message to show up even more next season. The IRS is verifying returns against third-party data more aggressively each year — including the newer 1099-DA digital asset reporting — while its workforce remains roughly 27% below recent peaks. More flags plus fewer staff means more letters and slower reviews. The practical takeaway for 2027: set up your IRS online account before filing season opens, and check it whenever WMR mentions correspondence. I’ll update this post as the IRS changes its notice process for next season. ## Common Issues to Watch Out For - **Waiting weeks for a letter that’s already viewable online.** Check your IRS online account the day you see the WMR message. - **Responding with partial documentation.** Every incomplete response restarts the review clock. Send everything the letter asks for, together. - **Missing that some letters need no response.** A CP05-style review notice often requires nothing — responding anyway doesn’t speed it up. - **Blowing the deadline because the letter went to an old address.** File Form 8822 if you’ve moved; the response window runs from the notice date regardless. - **Falling for fake “IRS” letters.** Real notices carry a notice number (top right) that matches what’s in your online account, and the IRS never demands gift cards or wire payment. Frequently Asked Questions QShould I worry when WMR says the IRS sent me a letter requesting more information? ANo - it's a to-do item, not an audit notice. Most cases are identity verification or routine income review. The letter tells you which situation you're in and whether you need to act. QHow do I see the letter before it arrives in the mail? ALog into your IRS online account and check the Notices and Letters section. Most IRS notices appear there before the paper copy lands, which can save you a week or more. QWhat letters typically trigger this WMR message? AThe most common are the 5071C (identity verification), CP05 (income/withholding review), and requests for missing forms or documentation supporting credits and deductions. QHow long until I get my refund after responding? AThe IRS generally takes up to 60 days to review a response and close the case. For identity verification, official guidance is up to 9 weeks after you verify. No-action review notices like the CP05 typically resolve within 60 days of the notice date. QWhat if I never receive the letter? AYour refund stays frozen - the IRS clock runs from the mailing date whether or not the letter reached you. Pull the notice from your online account, and file Form 8822 if your address has changed. QWill calling the IRS speed this up? ARarely. Phone lines answered only about 21% of calls last season, and agents generally can't shortcut a review. Responding completely to the letter is what moves your case. **Categories:** Taxes and Retirement --- ### [Never Received the IRS Letter Holding Up Your Refund? What to Do in 2026](https://savingtoinvest.com/what-happens-if-never-received-irs-letter/) **Published:** March 5, 2023 **Author:** Andy **Content:** ### Key Takeaways - If WMR shows a letter was sent but you never got it, check your IRS online account first - most notices are viewable digitally under 'Notices and Letters.' - Transcript code 971 ('notice issued') tells you a letter went out and the date your response window started. - Your refund stays frozen until you respond - the IRS clock runs from the mailing date, not the date you received the letter. - File Form 8822 immediately after moving; USPS forwarding is not enough because some IRS mail is marked do-not-forward. - IRS phone service remains strained in 2026 - about 21% of calls answered - so use online tools before dialing 1-800-829-1040. Every filing season I hear from readers who call the IRS after weeks of waiting, only to learn their refund has been frozen because they never responded to a letter — a letter they never actually received. The IRS considers the clock started the day the notice was mailed, whether or not it reached your mailbox. The good news: in 2026 you no longer have to wait on the mail. Almost every notice the IRS sends now appears digitally in your [IRS online account](https://www.irs.gov/payments/online-account-for-individuals), usually before the paper copy arrives. Covered in this Article: [Toggle](#) - [How Do I Know the IRS Sent a Letter I Didn’t Get?](#How_Do_I_Know_the_IRS_Sent_a_Letter_I_Didnt_Get) - [Getting a Copy of the Missing Letter](#Getting_a_Copy_of_the_Missing_Letter) - [Why Letters Go Missing — and How to Stop It Happening Again](#Why_Letters_Go_Missing_%E2%80%94_and_How_to_Stop_It_Happening_Again) - [What Happens While You Don’t Respond](#What_Happens_While_You_Dont_Respond) - [Looking Ahead: 2027 Filing Season](#Looking_Ahead_2027_Filing_Season) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## How Do I Know the IRS Sent a Letter I Didn’t Get? There are three telltale signs a letter went out that you never saw. First, the Where’s My Refund (WMR) tool or IRS2Go shows a message that the IRS sent you correspondence requesting more information — I cover that specific status in [this post](https://savingtoinvest.com/we-received-your-return-and-sent-you-a-letter-requesting-more-information-what-this-means-for-your-refund-processing/). Second, your [tax transcript](https://savingtoinvest.com/using-your-irs-transcript-to-get-your-tax-return-and-refund-processing-status-and-key-dates/) shows **code 971** (“notice issued”) with a date. That date is when the notice was generated — your response window runs from there. Third, it’s been well past 21 days since you e-filed with no movement on WMR. At that point, a stalled status plus no letter in hand usually means correspondence went astray. ## Getting a Copy of the Missing Letter Your fastest option is your IRS online account. Under the “Notices and Letters” section you can view and download most notices the agency has sent in the last few years. This is the first thing to check — before calling. If the notice isn’t viewable online (a minority of letter types still aren’t), call the number for individual filers: 1-800-829-1040. Be ready for a wait — the IRS answered only about 21% of the roughly 48 million calls it received during the 2026 filing season, with average hold times around 14 minutes and much longer during peak weeks. That’s the fallout from the agency’s workforce being down roughly 27% heading into this season. When you do reach an agent, ask three things: what notice was sent and when, what specifically the IRS needs from you, and whether they can reissue the letter or take your response by phone or fax. ## Why Letters Go Missing — and How to Stop It Happening Again The most common cause is simple: the IRS has an old address. The agency mails to the address on your last processed return unless you’ve told it otherwise. If you’ve moved since filing, file [Form 8822 (Change of Address)](https://www.irs.gov/forms-pubs/about-form-8822) right away — forwarding orders with USPS expire, and some IRS mail is marked “do not forward.” A smaller but growing issue is confusion with fake IRS letters. Scam mailers have gotten convincing, and some readers toss real notices assuming they’re junk. A genuine IRS notice has a notice number (like CP05 or CP63) in the top right corner, and it will never demand payment via gift cards or wire transfer. If in doubt, match the notice number against your online account. **Maria’s case:** Maria e-filed in early February and saw nothing on WMR for six weeks. Her transcript showed code 971 dated February 27. The letter — an identity verification request — had gone to her old apartment. She pulled the notice from her online account, verified online the same day, and had her refund about seven weeks later. ## What Happens While You Don’t Respond Nothing good, unfortunately — your refund simply sits. For identity verification letters, the return isn’t processed at all until you verify. For notices proposing adjustments, missing the response window can mean losing appeal rights, so the response deadlines on the letter matter — I’ve broken down the [actual response and payment timelines here](https://savingtoinvest.com/how-long-do-i-have-to-wait-after-an-irs-notice-to-get-my-tax-refund/). If your refund has been hung up for months over correspondence you never received, and you’re facing financial hardship, the [Taxpayer Advocate Service](https://savingtoinvest.com/contact-a-tax-advocate-to-help-get-your-refund-released-from-the-irs/) can take your case. ## Looking Ahead: 2027 Filing Season I expect digital delivery to keep expanding — the IRS has been steadily moving notices into the online account, and that’s the single best defense against lost mail. What I’m watching: whether the agency’s paper-processing modernization survives the current budget environment, and whether the Taxpayer Protection Program phone lines (19% answer rate this past season) get more staff before January. My advice heading into the 2027 season: set up your IRS online account now, before you file. Five minutes of setup means you’ll see any notice the day it’s issued instead of finding out months later. I’ll update this page as the IRS changes its notice delivery process. ## Common Issues to Watch Out For - **Assuming no news is good news.** A quiet WMR status past 21 days is a signal to check your transcript and online account, not to keep waiting. - **Responding to the wrong deadline.** Your response window runs from the notice date printed on the letter — not from the day you finally received or found it. - **Moving without filing Form 8822.** Updating your address with USPS is not the same as updating it with the IRS, and some IRS mail won’t forward. - **Tossing real letters as scams.** Check the notice number in the top-right corner against your IRS online account before you shred anything. - **Calling before checking online.** Most notices are now viewable in your online account instantly — the phone queue should be your second stop, not your first. Frequently Asked Questions QHow do I know if the IRS sent me a letter I never received? ACheck three places: the Where's My Refund tool for a message saying correspondence was sent, your tax transcript for code 971 ('notice issued'), and the Notices and Letters section of your IRS online account, which shows most letters digitally. QCan I see IRS letters online instead of waiting for the mail? AYes. Your IRS online account at irs.gov shows most notices and letters the agency has issued, usually available before the paper copy arrives. This is the fastest way to recover a lost letter. QDoes my response deadline start when I receive the letter? ANo - the response window runs from the notice date printed on the letter, which is when it was mailed. That's why a lost letter is a real problem: the clock runs whether or not you got it. QWhat happens to my refund if I never respond to an IRS letter? AIt stays held. Identity verification letters freeze processing entirely until you verify, and adjustment notices can cost you appeal rights if the window passes. Respond as soon as you discover the notice. QHow do I update my address with the IRS after moving? AFile Form 8822 (Change of Address). A USPS forwarding order isn't sufficient because certain IRS mail is marked 'do not forward' and gets returned instead. QWhat if I can't get through to the IRS by phone? AExpect long waits - the IRS answered only about 21% of calls last filing season. Check your online account first, and if your refund is severely delayed and causing hardship, contact the Taxpayer Advocate Service. **Categories:** Taxes and Retirement --- ### [Amending Your Tax Return in 2026 — Form 1040-X Rules, Deadlines, and the Real Refund Timeline](https://savingtoinvest.com/amended-tax-return-refund-schedule-rules-form-1040x-and-deadlines/) **Published:** February 10, 2016 **Author:** Andy **Content:** ### Key Takeaways - Official IRS guidance for Form 1040-X processing is 8 to 16 weeks, but the actual FY2025 average was over 5 months per the National Taxpayer Advocate. - You have 3 years from the original filing deadline (or 2 years from paying the tax) to amend for a refund - in 2026 that covers tax years 2023-2025. - E-file the 1040-X for current and two prior years, and take direct deposit - it's now available for amended refunds and cuts weeks off the wait. - Don't amend for math errors (the IRS auto-corrects those) or while your original return is still processing. - Track progress in the Where's My Amended Return tool starting ~3 weeks after filing, and don't call before 12 weeks. Found a missed credit, a wrong filing status, or a 1099 that arrived after you filed? Form 1040-X lets you fix it — and if the fix is in your favor, claim the extra refund. But amending isn’t always the right move, and the processing wait is measured in months, so it’s worth knowing the rules before you file one. The headline numbers for 2026: the IRS’s official guidance is **8 to 16 weeks** to process a 1040-X, but the National Taxpayer Advocate found the actual FY2025 average was **over 5 months**. Set your expectations accordingly. Covered in this Article: [Toggle](#) - [When You Should — and Shouldn’t — Amend](#When_You_Should_%E2%80%94_and_Shouldnt_%E2%80%94_Amend) - [The Deadline: The 3-Year / 2-Year Rule](#The_Deadline_The_3-Year_2-Year_Rule) - [How to File a 1040-X in 2026](#How_to_File_a_1040-X_in_2026) - [Tracking It: Where’s My Amended Return](#Tracking_It_Wheres_My_Amended_Return) - [Looking Ahead: 2027](#Looking_Ahead_2027) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## When You Should — and Shouldn’t — Amend Amend when the change actually affects your tax: missed credits or deductions, incorrect filing status, unreported income from a late-arriving W-2 or 1099, or changing dependents. These change your bottom line and are what the 1040-X exists for. Don’t amend for math errors — the IRS corrects those automatically and sends you a [CP11/CP12-series adjustment notice](https://savingtoinvest.com/irs-tax-notices-for-adjustments-due-to-tax-liability-or-refund-calculation-errors-cp11-cp12-cp13-and-cp14/) with the result. Don’t amend because your original return is slow, either; a 1040-X filed while the original is still processing creates confusion and compounds the delay. And don’t amend before your original return has fully processed. Wait until you’ve received your original refund (or paid the balance) before submitting the fix. ## The Deadline: The 3-Year / 2-Year Rule To claim a refund via amended return, you must file within **3 years of the original filing deadline** or **2 years from when you paid the tax**, whichever is later. Practically, that means in 2026 you can still amend your 2023, 2024, and 2025 returns for a refund. Miss the window and the refund is simply gone — the IRS keeps it. If you have an old refund-generating fix sitting around, that 3-year clock is the reason to act now rather than “someday.” **Sarah’s example:** Sarah realized in June 2026 that she’d skipped the education credit on her 2023 return, filed in March 2024. Her deadline to amend for a refund runs to roughly April 2027 (three years from the April 2024 deadline) — she’s fine, but a 2022 miss would already be unrecoverable. ## How to File a 1040-X in 2026 **E-file it if you can.** You can e-file Form 1040-X for the current and two prior tax years through major tax software, and amended refunds can now be paid by **direct deposit** — both changes that meaningfully cut the old paper-everything delays. Paper filing is still required in some edge cases (very old years, certain form combinations). If you must mail it, expect the slowest processing path and use certified mail. Attach or include any forms and schedules the change affects. An amended return that raises new questions gets kicked to manual review — the 5-month-plus pile. ## Tracking It: Where’s My Amended Return Your 1040-X shows up in the IRS’s [Where’s My Amended Return (WMAR) tool](https://savingtoinvest.com/wheres-my-amended-tax-return-and-when-will-i-get-my-refund/) about 3 weeks after filing, and moves through three stages: Received, Adjusted, Completed. I keep that post updated with what each status actually means and the current processing picture. Only call the IRS about an amended return after **12 weeks** minimum — and given that the agency answered only about 21% of calls last season, WMAR and your transcript are the better trackers. Given the NTA’s 5-month FY2025 average, I’d honestly not expect resolution before month four or five if your amendment needs any manual review. ## Looking Ahead: 2027 The thing I’m watching is automation. The National Taxpayer Advocate has specifically recommended the IRS automate more of the 1040-X review process to cut the backlog — whether that lands in time for the 2027 season will determine if the real-world average drops back toward the official 8-to-16-week guidance. Also worth noting for 2027: the One Big Beautiful Bill Act’s new provisions (overtime and tips deductions, the senior deduction, and the rest) mean plenty of 2025-year returns were filed under first-year rules this season. If you missed one of those new deductions on the return you filed in early 2026, that’s a legitimate — and probably common — reason to amend. I’ll update this page as the IRS releases new amended-return processing data. ## Common Issues to Watch Out For - **Amending for a math error.** The IRS fixes calculation mistakes automatically and mails you an adjustment notice — a 1040-X just adds months of confusion. - **Amending while the original is still processing.** Wait for your original refund before filing the fix, or the two returns can trip over each other. - **Missing the 3-year refund window.** In 2026, tax years 2023-2025 are amendable for refunds; older years are gone for good. - **Paper-filing when e-file was available.** E-filed 1040-X with direct deposit is the single biggest thing you control on timeline. - **Forgetting state taxes.** A federal amendment that changes your income usually means your state return needs amending too. Frequently Asked Questions QHow long does an amended return take in 2026? AThe IRS's official guidance is 8 to 16 weeks, but the National Taxpayer Advocate found the actual FY2025 average was over 5 months. E-filing with direct deposit puts you on the faster end. QWhat's the deadline to amend a return for a refund? AThree years from the original filing deadline or two years from when you paid the tax, whichever is later. In 2026, that means tax years 2023, 2024, and 2025 are still amendable for refunds. QCan I e-file Form 1040-X? AYes - for the current tax year and two prior years through major tax software. Amended refunds can also now be direct deposited instead of paper-checked. QShould I amend if I made a small math mistake? ANo. The IRS corrects math errors automatically during processing and sends you a CP11 or CP12 notice with the adjustment. Save the 1040-X for changes to income, credits, filing status, or dependents. QHow do I track my amended return? AUse the Where's My Amended Return (WMAR) tool - your 1040-X appears about 3 weeks after filing and moves through Received, Adjusted, and Completed stages. QDo I need to amend my state return too? AUsually yes, if the federal change affects your income or tax. Each state has its own amendment form and deadline - check your state's revenue department. **Categories:** Taxes and Retirement **Tags:** amend, Tax Return --- ### [Rebuilding a Poor Credit Score With a Credit Union Loan — and What Else Works in 2026](https://savingtoinvest.com/rebuild-a-poor-credit-score-using-a-credit-union/) **Published:** November 28, 2016 **Author:** Angela Skellington-Bice **Content:** ### Key Takeaways - Credit-builder loans through credit unions typically run 5%-16% APR, often cheaper than online platforms, on 12-24 month terms - Payment history is 35% of your FICO Score - the single biggest factor - which is exactly what a credit-builder loan is designed to build - Secured credit cards are a faster-to-open alternative: a refundable deposit (commonly $200-$500) becomes your credit limit, and on-time payers see average score gains of 60-100 points in the first year - Online credit-builder platforms like Self are a real alternative to a local credit union if you don't have one nearby or don't qualify for membership - Credit unions are non-profit and member-owned, so their rates and underwriting are often more forgiving of a low starting score than a traditional bank A credit-builder loan doesn’t hand you cash upfront. You make fixed monthly payments — usually $25 to $150 — into a locked savings account, the lender reports every payment to the credit bureaus, and you get the money back (minus interest) once the term ends. It’s a strange-sounding product, but it’s one of the more reliable ways to rebuild a poor credit score, and credit unions are still one of the best places to get one. I’ve written before about [how your FICO score actually works](https://savingtoinvest.com/breaking-down-and-improving-your-fico/). This post is about one specific tactic for people starting from a low score: using a credit union, rather than a bank or an online lender, to rebuild it. Covered in this Article: [Toggle](#) - [Why a Credit Union Instead of a Bank](#Why_a_Credit_Union_Instead_of_a_Bank) - [How a Credit-Builder Loan Actually Works](#How_a_Credit-Builder_Loan_Actually_Works) - [Secured Credit Cards: The Faster Alternative](#Secured_Credit_Cards_The_Faster_Alternative) - [A Realistic Example](#A_Realistic_Example) - [Don’t Have a Credit Union Nearby? Other Options](#Dont_Have_a_Credit_Union_Nearby_Other_Options) - [Common Mistakes to Watch Out For](#Common_Mistakes_to_Watch_Out_For) - [Looking Ahead](#Looking_Ahead) ## Why a Credit Union Instead of a Bank Credit unions are non-profit, member-owned financial institutions. They only need enough revenue to cover operating costs, not shareholder returns, which is part of why their loan rates tend to run lower than a comparable bank product. They’re also generally more willing to look past a low score than a big bank underwriting a loan on rate-sheet criteria alone. Many offer free credit counseling sessions focused on cash-flow analysis, on top of the credit-builder loan itself. ## How a Credit-Builder Loan Actually Works You apply for a small loan — usually $500 to $3,000 — but instead of receiving the funds, the credit union deposits them into a locked savings account or CD. You make fixed monthly payments for 12 to 24 months, and every payment (on time or late) gets reported to Experian, Equifax, and TransUnion. At the end of the term, you get the principal back, minus whatever interest and fees you paid along the way. Rates vary by institution — some credit unions offer credit-builder loans as low as 5%–9% APR, others closer to 16%, so it’s worth calling more than one before you sign up. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates as credit rebuilding options change.* ## Secured Credit Cards: The Faster Alternative If a 12- to 24-month loan term feels slow, a secured credit card is worth considering alongside it, not instead of it. You put down a refundable deposit — typically $200 to $500 — which becomes your credit limit, and you use the card like any other, paying it off in full each month. According to Experian’s 2025 credit data, people using secured cards with consistent on-time payments saw average score increases of 60 to 100 points within the first year. Many issuers, including several major banks, will “graduate” a secured card to an unsecured one after 6 to 12 months of on-time payments, at which point you get your deposit back. ## A Realistic Example Take a reader I’ll call Mark, starting at a 590 credit score after a rough couple of years. He opened a $1,000 credit-builder loan at his local credit union (9.9% APR, roughly $88/month for 12 months) and, separately, a secured card with a $300 deposit that he used for gas and groceries only, paid off in full every month. By month eight, his on-time payment history on both accounts had pushed his score into the mid-600s — not dramatic, but steady, and exactly the kind of trajectory the “35% payment history” weighting rewards. He didn’t take on any other new debt in the process, which matters: stacking multiple loans at once to “speed up” rebuilding usually backfires by triggering the new-credit and amounts-owed factors instead. ## Don’t Have a Credit Union Nearby? Other Options Credit union membership isn’t automatic everywhere, though requirements have loosened significantly compared to years ago — many are now open to anyone who lives, works, worships, or attends school in a given area, or who joins an affiliated association. If none of that fits, online credit-builder platforms like Self offer a similar structure: locked monthly payments reported to all three bureaus, without needing membership anywhere, and some include a path to a secured card once you’ve built up savings in the account. ## Common Mistakes to Watch Out For **Taking on multiple new loans at once to “speed things up.”** New credit and amounts-owed together make up 40% of your score — piling on debt while rebuilding usually works against you. **Not comparing rates across credit unions.** Credit-builder loan APRs can range from around 5% to 16% depending on the institution — a few phone calls before signing up is worth the time. **Missing a single payment near the end of the term.** Late payments still get reported even after months of on-time history, and payment history carries the most weight in your score. **Closing a secured card once it graduates.** Length of credit history matters — keeping the account open (even lightly used) after it converts to unsecured usually helps more than closing it. ## Looking Ahead I’ll be watching whether more credit unions start reporting to all three bureaus by default (some still only report to one or two), and how online credit-builder platforms compete on rates as more traditional lenders enter the space. Frequently Asked Questions QHow much does a credit-builder loan cost? AYou'll pay interest on the loan itself, typically in the 5%-16% APR range depending on the credit union or platform, plus sometimes a small setup fee. You get the principal back at the end, minus that interest and any fees. QHow fast will a credit-builder loan raise my score? AThere's no fixed timeline, but most people see meaningful movement within 6 to 12 months of consistent on-time payments, since payment history is the single largest factor in your FICO Score. QIs a secured credit card better than a credit-builder loan? AThey work well together rather than as a substitute for each other - a secured card builds a revolving-credit track record faster, while a credit-builder loan adds installment-account history and forces consistent savings. QDo I need to be a credit union member already to get a credit-builder loan? AUsually you need to join the credit union first, but membership requirements have loosened substantially - many credit unions are open to anyone in a broad geographic area or affiliated group. QWhat if there's no credit union near me? AOnline credit-builder platforms like Self offer a similar locked-savings structure without requiring membership anywhere, and report to all three credit bureaus. QWill opening a credit-builder loan hurt my score at first? AA hard inquiry when you apply can cause a small, temporary dip, but the ongoing on-time payment history typically outweighs that within a few months. **Categories:** Finance and Investing 101 **Tags:** credit score, credit union, debt, Loans --- ### [529 vs. Retirement: Why I Still Prioritize My 401(k) Over My Kid's College Fund](https://savingtoinvest.com/saving-for-the-future-college-tuition-vs-retirement/) **Published:** November 3, 2011 **Author:** Andy **Content:** ### Key Takeaways - Retirement accounts (401(k), IRA, pension) are fully excluded from FAFSA financial aid calculations - money there doesn't count against your child's aid eligibility - There's no loan for retirement the way there's a loan for college - your kids can borrow for school, you can't borrow for a 30-year retirement - The average Gen X 401(k) balance ($222,100) is far below what most people will need, making every year of delayed retirement saving costly - The new 529-to-Roth IRA rollover (up to $35,000 lifetime) reduces the old fear of 'over-saving' for college at retirement's expense - This isn't all-or-nothing - the goal is not neglecting retirement entirely, not skipping college savings altogether The typical American thinks they need $1.46 million to retire comfortably — up $200,000 from just last year’s estimate. Meanwhile, the average Gen X 401(k) balance sits at $222,100, and roughly 28% of Americans have nothing saved for retirement at all. Against that backdrop, I still tell parents the same thing I told them years ago: fund your own retirement before you max out your kid’s college fund. The reasoning holds up even better now than it used to, for a few concrete reasons. Covered in this Article: [Toggle](#) - [The Core Argument Hasn’t Changed](#The_Core_Argument_Hasnt_Changed) - [Retirement Accounts Don’t Count Against Financial Aid](#Retirement_Accounts_Dont_Count_Against_Financial_Aid) - [The Retirement Shortfall Is Real and Getting Bigger](#The_Retirement_Shortfall_Is_Real_and_Getting_Bigger) - [What About the “But What If They Don’t Use the 529” Worry?](#What_About_the_%E2%80%9CBut_What_If_They_Dont_Use_the_529%E2%80%9D_Worry) - [This Isn’t a “Skip College Savings Entirely” Argument](#This_Isnt_a_%E2%80%9CSkip_College_Savings_Entirely%E2%80%9D_Argument) - [Common Mistakes I See With This Tradeoff](#Common_Mistakes_I_See_With_This_Tradeoff) - [Looking Ahead](#Looking_Ahead) ## The Core Argument Hasn’t Changed Your kids can borrow for college. You cannot borrow for retirement. Student loans, for all their real downsides, come with income-driven repayment options, deferment, and (for federal loans) government-backed terms that no retirement lender will ever offer a 65-year-old. If you delay your own retirement contributions for 10 or 15 years to fully fund a child’s education, you lose the single most valuable resource in investing: time for compounding to work. Money you contribute at 35 has a fundamentally different growth trajectory than the same dollar contributed at 50. ## Retirement Accounts Don’t Count Against Financial Aid This is the detail that changes the math for a lot of families, and it’s not widely known: 401(k)s, 403(b)s, traditional and Roth IRAs, SEP-IRAs, and pension plans are completely excluded from FAFSA asset calculations, for both parents and students. A taxable brokerage account earmarked for college gets counted as a parental asset and can reduce aid eligibility. Money sitting in your 401(k) doesn’t factor into that calculation at all. In other words, prioritizing retirement contributions isn’t just good for your own future — it can genuinely help your child’s aid eligibility versus stockpiling the same money in a general savings or brokerage account. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates.* ## The Retirement Shortfall Is Real and Getting Bigger The numbers are sobering. For workers 55-64, the median 401(k) balance is around $107,000-$110,000 — nowhere close to what most financial planners recommend for a comfortable retirement. Only about 29% of Gen X savers have put away six times their salary, and fewer than 1 in 5 have reached eight times their salary, both common benchmarks for people approaching retirement age. A typical American couple retiring today faces an estimated annual income shortfall of $10,000 to $17,000 relative to their expected spending needs. That gap doesn’t shrink if you divert retirement contributions toward college savings in your peak earning years — it grows. ## What About the “But What If They Don’t Use the 529” Worry? This used to be one of the stronger arguments for holding back on 529 contributions in favor of more flexible retirement savings: what if your kid gets a scholarship, skips college, or the account ends up overfunded? That concern is meaningfully smaller now. Under [SECURE 2.0](https://savingtoinvest.com/navigating-the-new-rules-how-the-secure-2-0-act-impacts-your-retirement-catch-up-contributions/), up to $35,000 (lifetime) of leftover 529 funds can roll over tax- and penalty-free directly into the beneficiary’s own Roth IRA, once the account has been open at least 15 years. That’s not a way to convert unlimited college savings into retirement savings, but it does mean a reasonably funded 529 is far less likely to become “wasted” money than it once was. I go through the full mechanics in my [529 plan guide](https://savingtoinvest.com/how-to-choose-a-529-plan-and-pay-now-for-future-college-costs-contribution-limits-fees-and-tax-rules/). ## This Isn’t a “Skip College Savings Entirely” Argument To be clear, the point isn’t to abandon college savings — it’s about sequencing and balance. A reasonable approach most financial planners suggest: get your full [employer 401(k) match](https://savingtoinvest.com/maximum-employee-and-employer-401k-contribution-limits-and-catch-up-amounts/) first (that’s free money you’d otherwise leave on the table), then split additional savings between retirement and a 529 based on your timeline and comfort level, rather than fully funding one before starting the other at all. For families weighing alternatives beyond just a 529 — financial aid, scholarships, work-study — I cover the fuller picture in [how to pay for college](https://savingtoinvest.com/how-to-pay-for-college-funds-savings-and-alternatives/). ## Common Mistakes I See With This Tradeoff **Treating it as all-or-nothing.** The realistic goal is capturing your employer match and making meaningful retirement progress while still contributing something to a 529, not choosing one exclusively. **Not realizing retirement accounts are FAFSA-invisible.** Parents sometimes keep college money in a taxable account “to be safe,” not realizing that choice can actively reduce aid eligibility compared to funneling more into retirement accounts instead. **Underestimating how much retirement actually costs.** The “magic number” perception keeps rising ($1.46 million as of the latest estimate), and it’s easy to underestimate healthcare costs and longevity when planning decades out. **Assuming a 529 shortfall or surplus is permanent.** Between the Roth IRA rollover option and the ability to change beneficiaries to another family member, a 529 has more flexibility today than it did even five years ago. ## Looking Ahead I’ll be watching whether more families start using the 529-to-Roth rollover as more accounts cross the 15-year threshold, and whether the “magic number” retirement estimate keeps climbing as it has the past couple of years. I’ll also keep an eye on how Trump Accounts, which launched in July 2026, factor into this tradeoff for families now juggling three savings priorities instead of two. Frequently Asked Questions QShould I really prioritize my own retirement over my kid's college fund? AGenerally, yes, for two big reasons: there's no loan for retirement the way there's a loan for college, and retirement accounts don't count against your child's financial aid eligibility the way other savings do. QDo retirement accounts really not count on the FAFSA? ACorrect. 401(k)s, IRAs, pensions, and similar qualified retirement accounts are excluded from FAFSA asset calculations entirely, for both parents and students. QDoes this mean I shouldn't save for college at all? ANo. The point is sequencing: capture your full employer 401(k) match first, then split additional savings between retirement and college funding based on your own timeline and comfort level. QWhat if my 529 ends up overfunded because my child gets a scholarship or skips college? AUnder SECURE 2.0, up to $35,000 (lifetime) can roll over tax-free into the beneficiary's Roth IRA once the account is at least 15 years old, which significantly reduces the downside of a 529 surplus. QHow much do I actually need saved for retirement? AEstimates vary and keep rising - a commonly cited recent figure is around $1.46 million for a 'comfortable' retirement, though the right number depends heavily on your expected expenses, healthcare needs, and other income sources like Social Security. QAre most Americans behind on retirement savings? AThe data suggests yes for a large share of the population - the median 401(k) balance for workers 55-64 is roughly $107,000-$110,000, well short of common retirement benchmarks, and about 28% of Americans report having nothing saved for retirement at all. **Categories:** Career and Relationships, Personal Finance and Money **Tags:** College, debt, retirement, savings, Student, tuition --- ### [How to Pay for College in 2026: Financial Aid, Scholarships, and Alternatives to a 529](https://savingtoinvest.com/how-to-pay-for-college-funds-savings-and-alternatives/) **Published:** June 7, 2013 **Author:** Andy **Content:** ### Key Takeaways - Qualified retirement accounts (401(k), IRA, pension) are completely excluded from FAFSA asset calculations for both parents and students - Filing the FAFSA early (it opens each October for the following school year) matters because some aid is first-come, first-served - Scholarships aren't just for top students - many are based on major, location, employer, or simple luck of who applies - Community college for the first two years, then transferring, can cut total tuition substantially without sacrificing the eventual degree - Trump Accounts (Section 530A), launched July 2026, are a new complementary savings option, though not built specifically for education costs A 529 plan is the best-known college savings tool, but it’s rarely the whole answer. Between financial aid, scholarships, work-study, and a few savings vehicles most people overlook, there’s usually more room to close the gap than families assume. I’ve written separately about [choosing a 529 plan](https://savingtoinvest.com/how-to-choose-a-529-plan-and-pay-now-for-future-college-costs-contribution-limits-fees-and-tax-rules/) in detail, so this post focuses on everything around it — the aid and alternatives side of the equation. Covered in this Article: [Toggle](#) - [Start With the FAFSA, Even If You Doubt You’ll Qualify](#Start_With_the_FAFSA_Even_If_You_Doubt_Youll_Qualify) - [Scholarships: Broader Than “Straight-A Student”](#Scholarships_Broader_Than_%E2%80%9CStraight-A_Student%E2%80%9D) - [Work-Study and Working Through School](#Work-Study_and_Working_Through_School) - [The Community College Transfer Path](#The_Community_College_Transfer_Path) - [Alternatives and Supplements to a 529](#Alternatives_and_Supplements_to_a_529) - [Common Mistakes Families Make Paying for College](#Common_Mistakes_Families_Make_Paying_for_College) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) ## Start With the FAFSA, Even If You Doubt You’ll Qualify The Free Application for Federal Student Aid determines eligibility for federal grants, work-study, and federal student loans, and most schools also use it (or the CSS Profile) for their own institutional aid. Many families skip it assuming they earn too much to qualify — but the FAFSA also unlocks aid that isn’t purely need-based, and some schools require it just to be considered for merit scholarships. The FAFSA for the 2026-27 school year opens in October 2026. Filing close to when it opens matters most for aid that’s distributed on a first-come, first-served basis at the state or school level, even though federal aid itself isn’t first-come, first-served. **The detail that surprises most parents:** retirement accounts — 401(k)s, 403(b)s, traditional and Roth IRAs, SEP-IRAs, pensions — are not counted as assets on the FAFSA at all, for either parents or students. That’s one more reason prioritizing your own retirement contributions doesn’t work against your kid’s aid eligibility. One nuance worth knowing: the *contributions* you make to those accounts during the base tax year do get added back as untaxed income on the FAFSA, even though the account balance itself stays invisible. ## Scholarships: Broader Than “Straight-A Student” Merit scholarships based on GPA and test scores get the most attention, but plenty of scholarship money has nothing to do with being a top student. Employers, local civic organizations, unions, and industry associations all offer scholarships tied to a parent’s job, a student’s intended major, hobbies, or even just geography. Many go unclaimed simply because fewer people apply for the specific, narrower ones. A practical approach: apply broadly to smaller, specific scholarships (a few hundred to a couple thousand dollars each) rather than only chasing the handful of large, highly competitive national awards. The smaller ones have far better odds, and they add up. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates as financial aid rules change.* ## Work-Study and Working Through School Federal work-study provides part-time campus jobs to students with financial need, and the earnings don’t count against you the following year’s FAFSA the way outside income might. Even without a formal work-study award, part-time work — on or off campus — can meaningfully offset living expenses without derailing a course load, especially in a student’s later years once they’ve adjusted to the academic workload. ## The Community College Transfer Path Starting at a community college for general education requirements, then transferring to a four-year school to finish the degree, is one of the most underused ways to cut total cost. Many states have formal articulation agreements guaranteeing credits transfer to in-state public universities, and the diploma at the end says the four-year school’s name, not the community college’s. This isn’t the right fit for every student or every program, but it’s worth evaluating seriously rather than dismissing outright, especially for cost-sensitive families. ## Alternatives and Supplements to a 529 If a 529 doesn’t fit your situation, or you want a supplement to it, a few other options exist: **A regular taxable brokerage or savings account** offers no special tax treatment, but also no restrictions on how the money gets used — useful if you want flexibility in case college plans change entirely. **Coverdell Education Savings Accounts** allow up to $2,000 per year per beneficiary, with tax-free withdrawals for K-12 and college expenses, but funds must be used by the time the beneficiary turns 30 or they’re distributed and taxed. Given the $2,000 annual cap and 529 plans’ much higher contribution limits and broader current-law flexibility, a Coverdell is usually a secondary vehicle at best. **Trump Accounts (Section 530A)**, which launched in July 2026, are a new long-term savings account for children, seeded with a one-time $1,000 federal deposit for kids born 2025-2028, with up to $5,000/year in additional contributions from any source. These function more like an early-start retirement account than an education fund specifically, since withdrawals are restricted until age 18 and the account converts to a traditional IRA after that. It’s a complement to college savings, not a substitute for a 529 if education costs are your primary goal. ## Common Mistakes Families Make Paying for College **Not filing the FAFSA because they assume they won’t qualify for anything.** Many schools require it for merit aid consideration regardless of financial need, and it costs nothing to file. **Only applying to a handful of large national scholarships.** Smaller, more specific, less-competitive scholarships have dramatically better odds and are worth the extra applications. **Overlooking retirement contributions as a FAFSA strategy.** Maximizing [401(k)](https://savingtoinvest.com/maximum-employee-and-employer-401k-contribution-limits-and-catch-up-amounts/) or IRA contributions in the base tax year both secures your own future and keeps that money off the FAFSA asset calculation. **Dismissing community college transfer paths over image concerns.** The math on total cost savings is often significant enough to be worth a serious look, particularly for cost-sensitive families or undecided majors. ## Looking Ahead: 2027 Outlook I’ll be watching the FAFSA’s October 2026 opening for the 2026-27 cycle for any processing issues (recent years have had rocky rollouts), and tracking whether more employers add education-specific benefits now that the FAFSA’s retirement-asset exclusion makes maximizing retirement contributions an even clearer aid strategy. I’ll also watch how Trump Accounts get used in practice over their first full year, since the rules around combining them with traditional college savings are still new. For the tuition numbers themselves — what schools actually cost after aid — see my [full breakdown of 2025-26 tuition rates](https://savingtoinvest.com/college-and-university-tuition-rates-increase/). And if you’re deciding how to balance college savings against your own retirement, I cover that tradeoff in [529 vs. retirement savings](https://savingtoinvest.com/saving-for-the-future-college-tuition-vs-retirement/). Frequently Asked Questions QShould I file the FAFSA even if I think I make too much money to qualify for aid? AYes. Many schools require it for merit scholarship consideration regardless of financial need, and some aid programs aren't strictly need-based. QDo my retirement savings hurt my child's financial aid eligibility? ANo. 401(k)s, IRAs, pensions, and other qualified retirement accounts are excluded from FAFSA asset calculations entirely, for both parents and students. QWhen does the FAFSA open for the 2026-27 school year? AOctober 2026. Filing early matters most for state and school-level aid distributed on a first-come, first-served basis. QAre scholarships only for students with top grades? ANo. Many scholarships are tied to major, employer, location, or specific personal circumstances rather than academic rank, and smaller, niche scholarships typically have much better odds than large national awards. QIs starting at community college and transferring a good way to save money? AFor many students, yes - especially with a state articulation agreement guaranteeing credit transfer. The diploma reflects the four-year school where the degree is completed. QIs a Coverdell ESA still worth using alongside a 529? AFor most families, no - the $2,000 annual contribution cap is far below what a 529 allows, and 529 plans now offer comparable or greater flexibility under recent law changes. QHow is a Trump Account different from a 529 plan for college costs? AA Trump Account functions more like an early-start retirement account (funds are locked until age 18, then it converts to a traditional IRA) rather than a dedicated education savings vehicle, so it complements rather than replaces a 529 for college-specific saving. **Categories:** Career and Relationships **Tags:** 529, College, university --- ### [Best Time of Year to Buy a Car: End-of-Year Deals and Other Windows Dealers Don't Advertise](https://savingtoinvest.com/end-of-year-car-deals-how-to-save-when-auto-shopping-dealers-beware/) **Published:** November 13, 2011 **Author:** Andy **Content:** ### Key Takeaways - The last week of December remains the strongest single window - dealers are clearing current-model-year inventory before the new model year arrives - Month-end and quarter-end matter almost as much as year-end - sales staff and managers chase monthly and quarterly volume bonuses - Late summer into early fall (roughly August-October) is when outgoing model-year vehicles get discounted as next year's models arrive - Three-day sales weekends (Memorial Day, Labor Day, Presidents' Day, Black Friday) are built around advertised promotional pricing - Stacking multiple windows (month-end, an overstocked dealership, model-year changeover) can realistically get you to 10-15% off sticker price - more than any single factor alone - For negotiating tactics and financing tips that apply no matter when you buy, see my 10 car buying tips post Year-end is the best-known window for car deals, but it’s not the only one. Dealerships have several points in their sales cycle where they’re motivated to discount — knowing all of them, not just December, gives you more shots at a good price. Covered in this Article: [Toggle](#) - [Year-End: Still the Strongest Window](#Year-End_Still_the_Strongest_Window) - [Month-End and Quarter-End Also Matter](#Month-End_and_Quarter-End_Also_Matter) - [The Model-Year Changeover (Late Summer Into Fall)](#The_Model-Year_Changeover_Late_Summer_Into_Fall) - [The Big Advertised Sales Weekends](#The_Big_Advertised_Sales_Weekends) - [How Much You Can Realistically Save by Timing It Right](#How_Much_You_Can_Realistically_Save_by_Timing_It_Right) - [A Note on Financing Timing](#A_Note_on_Financing_Timing) - [What These Tips Don’t Cover](#What_These_Tips_Dont_Cover) ## Year-End: Still the Strongest Window The dealerships turn in their “numbers” at the end of the year the same way they do at the end of every month — except December’s numbers matter more, since they’re also closing out the calendar year against annual manufacturer targets. That’s on top of a practical inventory problem: dealers need to clear current-model-year cars off the lot before next year’s models take up the floor space. Between Christmas and New Year’s is when I’ve found this pressure is most visible — sales staff and managers are both trying to hit year-end bonuses and get rid of aging inventory in the same week. ## Month-End and Quarter-End Also Matter This isn’t just a December thing. Dealerships report sales numbers monthly, and many manufacturers set quarterly targets on top of that. Sales staff and finance managers get bonuses and kickbacks tied to those numbers, so the last few days of any month — and especially the last month of a quarter (March, June, September, December) — are when they’re most motivated to move a few extra cars at a discount, even if it means a smaller margin per sale. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates.* ## The Model-Year Changeover (Late Summer Into Fall) As new model-year vehicles start arriving on lots — typically August through October, depending on the manufacturer — dealers need to discount whatever’s left of the outgoing model year to make room. This is a good window if you don’t care about having the very latest model year and want a steeper discount on a car that’s still brand new. The discount tends to be bigger the closer you get to the actual changeover date, and bigger still on models that aren’t big sellers for that brand — a slow-moving trim or color combination sitting on the lot when the next model year shows up is exactly the inventory a dealer wants gone. Watch for dealership marketing around “model clearance,” “year-end clearance,” or outgoing-model-year names in ads — that’s the tell that you’re in this window. ## The Big Advertised Sales Weekends Memorial Day, Labor Day, Presidents’ Day, and Black Friday all come with manufacturer incentives and dealership promotions built around the long weekend. These can be genuinely good deals, since manufacturers often roll out cash-back offers or subsidized financing timed to these events — 0% APR promotions for 36-72 months and flat cash-back offers (commonly $500-$3,000 depending on the model) are the two most common forms. Just compare the “sale” price against your own research rather than assuming the advertised discount is automatically the floor — dealerships know these weekends bring in more shoppers, which cuts against your negotiating leverage even as the sticker discount looks bigger. ## How Much You Can Realistically Save by Timing It Right Timing alone won’t get you 30% off, but stacking the right windows can meaningfully move the number. Say Maria is shopping for an outgoing-model-year SUV in late September. She waits until the last few days of the month (month-end bonus pressure), picks a dealership that’s visibly overstocked on that exact trim (inventory pressure), and times it right as the new model year is arriving on the lot (changeover pressure). Each of those factors alone might be worth a percentage point or two off the sticker price; stacked together, buyers in this kind of window often report getting closer to the 10-15% off sticker price that’s the realistic ceiling for a non-negotiated, well-timed purchase — before any additional haggling. Compare that to walking in mid-month, for a current, hot-selling model, with no inventory overhang: the dealership simply has less reason to move on price, no matter how good your negotiating tactics are. ## A Note on Financing Timing Timing your purchase for the best sticker-price discount and timing it for the best loan rate aren’t always the same decision. If the Fed starts cutting rates, auto loan rates should drift down over time, which could make waiting a few months worth more than an extra point off the sticker price — especially on a larger loan. It’s worth checking where rates stand before you assume the best month-end or year-end discount is automatically the best overall deal once financing is factored in. ## What These Tips Don’t Cover Timing gets you in the door at the right moment, but it doesn’t replace the actual negotiating and financing tactics — arranging your own financing, negotiating total price instead of monthly payment, handling the trade-in, and not engaging the salesman’s scripted pushback. I cover all of that in [my 10 car buying tips post](https://savingtoinvest.com/ten-car-buying-tips-to-getting-best/), and the used-car-specific numbers (pricing, loan rates, CPO) are in my [complete used car buying guide](https://savingtoinvest.com/buying-a-used-car-unnecessary-hassle-or-financially-savvy/). Frequently Asked Questions QWhat is the actual best day or week to buy a car? AThe last week of December is generally considered the strongest single window, but month-end and quarter-end throughout the year offer nearly comparable leverage. QWhy do dealerships discount more at month-end? ASales staff and managers are paid partly on bonuses tied to monthly and quarterly volume targets, so they're more willing to cut a deal in the final days of those periods. QIs late summer a good time to buy too? AYes - as new model-year vehicles start arriving (typically August through October), dealers discount remaining current-model-year inventory to clear space. QAre Memorial Day and Labor Day sales actually good deals? AThey can be, since manufacturers often roll out incentives timed to these weekends, but they're advertised events - compare the sale price against your own research rather than assuming it's automatically the floor. QWhere can I find negotiating and financing tips that apply year-round? ASee my 10 car buying tips post for negotiating tactics and my used car buying guide for financing and CPO/used-specific advice. QHow much can timing alone actually save me? AStacking several favorable windows - month-end, an overstocked dealership, and the model-year changeover - can realistically get you into the 10-15% off sticker price range before any negotiating. Any single factor alone is usually worth less. QShould I wait for lower interest rates instead of buying now for a bigger discount? AIt depends on the loan size. If rates are expected to fall, waiting can save more over the life of a large loan than an extra point or two off the sticker price would. Check where rates stand before assuming the best-timed sticker discount is the best overall deal. **Categories:** Saving and Investing ideas **Tags:** auto, Buying, car, deals --- ### [Buying a Used Car in 2026: What It Actually Costs and How to Get a Good Deal](https://savingtoinvest.com/buying-a-used-car-unnecessary-hassle-or-financially-savvy/) **Published:** April 25, 2012 **Author:** Andy **Content:** ### Key Takeaways - The average used car cost about $25,600-$30,000 in mid-2026, versus roughly $49,000-$52,000 for a new car - a $20,000+ gap - Used car loans carry meaningfully higher rates than new car loans: the average is around 11-12%, and it can run from about 5.5% up to 15%+ depending on credit - Certified Pre-Owned (CPO) cars cost about 1.8% more than non-certified used cars on average, but that premium buys a factory warranty and inspection - The new OBBBA car loan interest deduction (up to $10,000/year, 2025-2028) only applies to new vehicles - used car buyers don't qualify - Getting preapproved by your own bank or credit union before you walk into a dealership is still the single best way to avoid getting steered into a high-rate loan The average used car sold for around $25,600 in mid-2026, according to used-vehicle price trackers. Some methodologies that weight more toward newer used inventory, like JD Power’s, put it closer to $30,166. Either way, that’s roughly half of what a new car costs today. [Kelley Blue Book](https://www.kbb.com/car-news/average-new-car-price-cooled-slightly-to-49220-in-may/) had the average new car transaction price at $49,220 in May 2026, with some months since running over $51,000. That gap is the entire reason to buy used. But it’s not automatic savings — financing, certification status, and how you shop can eat into it fast. Here’s what’s actually changed this year and how I’d approach it. Covered in this Article: [Toggle](#) - [What Used Cars Actually Cost Right Now](#What_Used_Cars_Actually_Cost_Right_Now) - [Used, Certified Pre-Owned, or New: How I’d Think About It](#Used_Certified_Pre-Owned_or_New_How_Id_Think_About_It) - [Financing: The Part That Actually Determines Your Total Cost](#Financing_The_Part_That_Actually_Determines_Your_Total_Cost) - [Inspecting Before You Buy](#Inspecting_Before_You_Buy) - [Common Mistakes I See Buyers Make](#Common_Mistakes_I_See_Buyers_Make) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) ## What Used Cars Actually Cost Right Now Used car prices aren’t falling the way a lot of buyers expect. Price trackers show used prices running $1,350 to $3,600 higher than where 2026 started, with a jump of more than 1% in June alone. Tighter used inventory — fewer off-lease and rental returns coming back onto the market — is keeping prices firm even as new car prices climb too. The median used car price, which better reflects what a typical buyer pays versus averages skewed by high-end trims, sits closer to $17,990. I’d use that median as your mental anchor for a normal daily driver, and treat the $25,600-$30,000 averages as what you’ll see once trucks, SUVs, and newer model years get folded in. ## Used, Certified Pre-Owned, or New: How I’d Think About It There are really three lanes here, not two. **Private-party or non-certified dealer used** is the cheapest way in. You’re buying “as-is” in most cases, so the savings come with real risk — no factory warranty, and whatever maintenance history you can piece together yourself. **Certified Pre-Owned (CPO)** costs about 1.8% more than a comparable non-certified used car, per Kelley Blue Book. In exchange, you get a manufacturer-backed inspection, an extended warranty, and often perks like roadside assistance. For a car in the 3-6 year range, I think that premium is usually worth it — it’s a small price bump for meaningfully lower risk on a purchase most people make only every several years. **New** gets you the full warranty and zero unknown history, but you’re paying the depreciation premium instead of someone else. New cars lose a meaningful chunk of value in the first year alone, which is the whole reason the used market exists. If you want the negotiation tactics for any of these three paths — timing your purchase, dealing with the finance office, not engaging the salesman’s games — I’ve got a full breakdown in [my 10 car buying tips post](https://savingtoinvest.com/ten-car-buying-tips-to-getting-best/), and a seasonal timing angle in [my best-time-of-year-to-buy post](https://savingtoinvest.com/end-of-year-car-deals-how-to-save-when-auto-shopping-dealers-beware/). ## Financing: The Part That Actually Determines Your Total Cost This is where most of the “used car savings” quietly disappear if you’re not careful. Used car loans cost more than new car loans — usually 1 to 3 percentage points more — because lenders see an older vehicle as riskier collateral. Right now, [average used car loan rates](https://www.bankrate.com/loans/auto-loans/average-car-loan-interest-rates-by-credit-score/) are running around 10.4% to 11.9% APR depending on the source, with Experian putting the overall average at 11.87%. Your actual rate depends heavily on credit. The full range currently runs from roughly 5.49% for excellent credit up to 14.99%+ for subprime borrowers — so two buyers financing the exact same car can end up nearly three times apart on rate. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates as used car pricing and financing conditions shift.* A few things I’d do before setting foot on a lot: - **Get preapproved by your own bank or credit union first.** This gives you a real number to compare against whatever the dealership’s finance office offers, and takes away their leverage to quietly mark up your rate. - **Don’t assume the dealership rate is competitive just because it’s convenient.** Dealer financing can come with a built-in markup on top of what the lender actually charged them. - **Know that the new car loan interest deduction doesn’t help you here.** The [OBBBA’s new deduction](https://www.irs.gov/newsroom/treasury-irs-provide-guidance-on-the-new-deduction-for-car-loan-interest-under-the-one-big-beautiful-bill) — up to $10,000 a year in loan interest for vehicles bought 2025 through 2028 — only applies to new vehicles with final assembly in the U.S., not used ones. It shouldn’t factor into a used car decision at all. One more cost that’s easy to underestimate: insurance. A used car isn’t automatically cheaper to insure than a new one, since rates depend more on the model and your driving record than the purchase price. It’s worth [comparing insurance quotes](https://savingtoinvest.com/cheaper-auto-insurance) before you commit, so the total monthly cost — loan payment plus insurance — is the number you’re actually budgeting against. ## Inspecting Before You Buy Whatever lane you choose, don’t skip a pre-purchase inspection. An independent mechanic’s inspection (separate from whatever the seller or dealer tells you) typically costs $100-$200 and can save you from a car with a hidden accident history or a transmission on its way out. Pull a vehicle history report (Carfax or AutoCheck) before you even go look at the car in person — it’s a quick way to screen out anything with a salvage title, flood damage, or an odometer discrepancy before you waste a Saturday on a test drive. ## Common Mistakes I See Buyers Make **Focusing only on the sticker price, not the total cost.** The interest rate on a used car loan can add thousands over the life of the loan — the difference between a 6% and 12% rate on the same $20,000 loan is a real four-figure gap in what you actually pay. **Skipping the independent inspection to save $150.** I get why — it feels redundant if the seller says the car is fine. But that’s exactly the $150 that either confirms you’re safe or saves you from a five-figure mistake. **Trading in without checking the private-party value first.** Dealerships routinely lowball trade-ins because they know most people default to convenience. Get a private-party quote (or a CarMax-style instant offer) before you agree to a trade-in number. **Assuming CPO always means “worth it.”** The 1.8% premium is reasonable for a car with real, useful remaining warranty coverage. It’s a worse deal on a car that’s already near the end of its factory warranty window anyway. ## Looking Ahead: 2027 Outlook I’ll be watching a few things heading into 2027. Used car inventory has stayed tight because fewer leases and rental fleet vehicles are rolling over into the used market compared to pre-2020 norms, and that’s kept prices firmer than a lot of forecasters expected. If that inventory picture loosens up, used prices could soften. Auto loan rates will track whatever the Fed does with its benchmark rate. If the Fed starts cutting in late 2026 or 2027, expect used car loan rates to drift down from the current 10-12% range, though probably not dramatically or quickly. I’ll also be watching whether Congress extends or modifies the OBBBA car loan interest deduction as its 2028 expiration approaches, and whether any similar break ever gets extended to used vehicles — nothing proposed on that front as of now, but it’s the kind of thing that could change with enough lobbying pressure. I’ll update this page as pricing, rate, and policy data shifts. Frequently Asked Questions QIs a used car actually cheaper than a new car in 2026? AYes, by a wide margin. The average used car costs roughly $25,600-$30,000 versus about $49,000-$52,000 for a new car, though the used car loan's higher interest rate eats into some of that gap. QWhat's a good interest rate on a used car loan right now? ARates currently range from about 5.5% for excellent credit up to 15%+ for subprime borrowers, with an overall average around 11-12%. Getting preapproved by your own bank or credit union before shopping is the best way to know if a dealer's offer is competitive. QIs Certified Pre-Owned (CPO) worth the extra cost? AUsually, yes, for a car that still has meaningful factory warranty life left. CPO cars cost about 1.8% more than comparable non-certified used cars on average, and that buys an inspection plus extended warranty coverage. QDoes the new car loan interest tax deduction apply to used cars? ANo. The OBBBA's car loan interest deduction (up to $10,000/year, 2025-2028) applies only to new vehicles with final assembly in the U.S. Used car purchases don't qualify, regardless of how the loan is structured. QShould I get my own financing before going to the dealership? AYes. Arranging financing through your bank or credit union first gives you a real number to negotiate against, and prevents the dealership's finance office from marking up your rate without you knowing. QHow much should a pre-purchase inspection cost? ATypically $100-$200 for an independent mechanic to check a used car before you buy it. It's one of the cheapest ways to avoid an expensive surprise. **Categories:** Personal Finance and Money **Tags:** car, depreciation, haggle, new, used --- ### [College and University Tuition Rates in 2026-2027: What They Actually Cost After Financial Aid](https://savingtoinvest.com/college-and-university-tuition-rates-increase/) **Published:** April 23, 2012 **Author:** Andy **Content:** ### Key Takeaways - Public four-year in-state tuition: $11,950 for 2025-26, up 2.9%; projected to rise about 2.3% for 2026-27 - Private nonprofit four-year tuition: $45,000 for 2025-26, up 4.0% nominal (only 1.4% after adjusting for inflation) - Sticker price isn't what most families pay: average net tuition after grants and aid is about $2,300 at public in-state schools and $16,910 at private nonprofit schools - A new OBBBA endowment tax (1.4%-8%, tiered) hits roughly 15 of the wealthiest universities starting in 2026, which could pressure financial aid budgets at those specific schools - Tuition has historically risen at roughly twice the inflation rate, though that gap has narrowed in recent years Published tuition at public four-year, in-state schools hit $11,950 for the 2025-26 school year, up 2.9% from the year before. Private nonprofit four-year tuition climbed to $45,000, up 4.0% before adjusting for inflation. For 2026-27, [College Board](https://research.collegeboard.org/trends/college-pricing/highlights) projections put the next increase at around 2.3% for public four-year schools — a smaller jump than in past years, but still outpacing general inflation. A few years back I wrote about my own MBA tuition rising 5% a year while I was in school. That trend never really stopped — it’s just slowed down some. Covered in this Article: [Toggle](#) - [What Tuition Actually Costs Right Now](#What_Tuition_Actually_Costs_Right_Now) - [Sticker Price vs. What Families Actually Pay](#Sticker_Price_vs_What_Families_Actually_Pay) - [Why Tuition Keeps Rising (Even as the Pace Slows)](#Why_Tuition_Keeps_Rising_Even_as_the_Pace_Slows) - [The New Wrinkle: OBBBA’s Endowment Tax](#The_New_Wrinkle_OBBBAs_Endowment_Tax) - [What This Means If You’re Planning for These Costs](#What_This_Means_If_Youre_Planning_for_These_Costs) - [Common Mistakes Families Make When Budgeting for Tuition](#Common_Mistakes_Families_Make_When_Budgeting_for_Tuition) - [Looking Ahead: 2027-28 Outlook](#Looking_Ahead_2027-28_Outlook) ## What Tuition Actually Costs Right Now For the 2025-26 academic year, average published tuition and fees break down like this: School Type2025-26 TuitionYoY IncreasePublic 4-year, in-state$11,950+2.9%Public 4-year, out-of-state$31,880—Public 2-year (community college)$4,150+2.7%Private nonprofit 4-year$45,000+4.0% These are sticker prices — what a school publishes as its official cost of attendance before any grants or aid. They’re the number that shows up in headlines, and the number that scares a lot of families away from schools they could actually afford. ## Sticker Price vs. What Families Actually Pay This is the part that gets lost every year: the average student doesn’t pay the sticker price. After grants and aid, the average net tuition for first-time, full-time students at public four-year in-state schools runs around $2,300. At private nonprofit four-year schools, the average net price is about $16,910 — down from $19,810 (in today’s dollars) back in 2006-07. In other words, adjusted for inflation and aid, net tuition has actually *fallen* over the past two decades at both public and private nonprofit schools, even as the published price has kept climbing. Sticker price and what you’ll actually be billed can be two very different numbers, and the gap tends to be widest at the private schools with the biggest headline price tags. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates as tuition and financial aid data changes.* ## Why Tuition Keeps Rising (Even as the Pace Slows) The old rule of thumb — tuition rises at roughly twice the general inflation rate — still holds up over the long run, but the last couple of years have been milder than that. Public tuition rose 2.9% against roughly 2.6% inflation, which is close to even, not double. Part of that is state and institutional aid absorbing more of the increase before it reaches a student’s bill. Part of it is schools being more cautious about sticker-price increases after years of enrollment pressure and public scrutiny over college costs. ## The New Wrinkle: OBBBA’s Endowment Tax Starting in 2026, the One Big Beautiful Bill (OBBBA) created a new tiered tax on the investment income of the wealthiest college endowments — schools with more than 3,000 tuition-paying students and high endowment-per-student ratios. Rates run from 1.4% up to 8%, depending on the tier, and roughly 15 universities are expected to land in the higher brackets. This mostly hits elite private research universities, not your average public or regional private school. But it’s worth watching: schools facing the higher tax tiers have flagged that unrestricted budget categories — financial aid, research funding, and campus maintenance — are the most likely places to absorb the hit if a school decides to offset the new tax rather than raise tuition further. ## What This Means If You’re Planning for These Costs If you’re saving ahead of time, the tools haven’t changed even if the numbers have. I’ve written before about [how to choose a 529 plan](https://savingtoinvest.com/how-to-choose-a-529-plan-and-pay-now-for-future-college-costs-contribution-limits-fees-and-tax-rules/), [how to pay for college using savings, aid, and alternatives](https://savingtoinvest.com/how-to-pay-for-college-funds-savings-and-alternatives/), and the tradeoff between [funding a 529 versus your own retirement](https://savingtoinvest.com/saving-for-the-future-college-tuition-vs-retirement/). All three are worth a look before you assume the sticker price is what you’ll actually owe. ## Common Mistakes Families Make When Budgeting for Tuition **Ruling out a school based on sticker price alone.** The net price calculator every school is required to post (search “\[school name\] net price calculator”) gives a much more realistic estimate than the published cost of attendance. **Not comparing net price across schools.** A $45,000 private school with generous aid can end up cheaper than a $12,000 public school with none. Compare net price, not published price. **Waiting too long to start saving.** Even modest 529 contributions made early compound over more years than large contributions made late. The account matters less than the head start. **Assuming a public school is automatically the “safe” choice.** It usually is cheaper, but out-of-state public tuition ($31,880 on average) can rival or exceed a private school’s net price after aid. ## Looking Ahead: 2027-28 Outlook I’ll be watching whether the 2026-27 increase actually lands near the projected 2.3%, or whether inflation and state budget pressure push it higher once real numbers come in this fall. I’ll also be watching how many schools end up in the higher endowment tax tiers once 2026 enrollment and endowment figures are finalized, and whether any of them respond by trimming financial aid rather than absorbing the cost elsewhere. I’ll update this page once the College Board’s next Trends in College Pricing report comes out, typically in October or November. Frequently Asked Questions QHow much has college tuition increased for 2025-26? APublic four-year in-state tuition rose 2.9% to $11,950, and private nonprofit four-year tuition rose 4.0% to $45,000. QWill tuition keep rising at the same rate in 2026-27? ACollege Board projections put the 2026-27 increase at around 2.3% for public four-year schools, slightly slower than the prior year's pace. QIs the published tuition price what most students actually pay? ANo. After grants and aid, the average net price is about $2,300 at public in-state schools and $16,910 at private nonprofit schools - both well below the sticker price. QWhat is the new endowment tax, and does it affect my school? AIt's a new OBBBA tax (1.4%-8%, tiered) on the investment income of roughly 15 of the wealthiest university endowments, generally large private research universities with over 3,000 students. It doesn't apply to most public or smaller private schools. QIs it true that tuition rises twice as fast as inflation? AThat's been the long-term historical pattern, but recent years have been closer to even with inflation, not double. QWhere can I find tools to plan and save for future tuition costs? AEvery school is required to post a net price calculator, which gives a more realistic cost estimate than the sticker price. For savings strategy, see my guides on choosing a 529 plan and paying for college through savings and aid. **Categories:** Personal Finance and Money **Tags:** 2012, 2013, College, costs, Rates, tuition, university --- ### [2026-2027 Kids and Education Tax Credits Parents Can Claim - AOTC, Lifetime Learning, and the New Scholarship Tax Credit](https://savingtoinvest.com/tax-breaks-parents-lose-when-children-grow-up-so-take-advantage-of-them-now/) **Published:** October 14, 2016 **Author:** Andy **Content:** ### Key Takeaways - The Child Tax Credit ($2,200/child, up to $1,700 refundable via ACTC) covers kids under 17; full rules are on the dedicated CTC page. - The American Opportunity Tax Credit ($2,500/student) and Lifetime Learning Credit ($2,000/return) are both now permanent under the OBBBA, with aligned income limits ($80K-$90K single, $160K-$180K joint). - The new Federal Scholarship Tax Credit lets you donate up to $1,700/year to an approved Scholarship Granting Organization for a dollar-for-dollar credit, but only in states that opt in (27 so far) and only starting with 2027 tax returns filed in 2028. - Only one of AOTC or LLC can be claimed per student per year - compare which gives the bigger benefit. Raising a child in today’s world is not cheap. Estimates for raising a child from birth through college in a middle-class household commonly range from $200,000 to $400,000, and those costs keep climbing as education, health care, and everyday living expenses rise. The federal government offsets some of that cost through a handful of tax breaks. Some are tied to having young kids, some kick in once they’re in college, and one brand-new credit won’t be claimable until 2027. Here’s what’s actually available and how they fit together. Covered in this Article: [Toggle](#) - [Child Tax Credit and Additional Child Tax Credit](#Child_Tax_Credit_and_Additional_Child_Tax_Credit) - [American Opportunity Tax Credit (AOTC)](#American_Opportunity_Tax_Credit_AOTC) - [Lifetime Learning Credit (LLC)](#Lifetime_Learning_Credit_LLC) - [New for 2027: The Federal Scholarship Tax Credit (FSTC)](#New_for_2027_The_Federal_Scholarship_Tax_Credit_FSTC) - [Earned Income Tax Credit (EITC)](#Earned_Income_Tax_Credit_EITC) - [Quick Comparison](#Quick_Comparison) - [Looking Ahead: 2027](#Looking_Ahead_2027) ### Child Tax Credit and Additional Child Tax Credit The core benefit for parents of kids under 17 is the Child Tax Credit (CTC), currently **$2,200 per qualifying child**, with up to **$1,700 per child refundable** through the Additional Child Tax Credit (ACTC) if your tax bill is already at zero. Claiming it now requires the taxpayer (or at least one spouse, if filing jointly) to have a valid Social Security Number, a change enacted under the One Big Beautiful Bill Act (OBBBA). I cover the full income phase-outs, qualification tests, and ACTC math in detail on my [dedicated Child Tax Credit page](https://savingtoinvest.com/child-and-kiddie-tax-credit-and-income-thresholds/) — worth a look if you want the complete rules rather than the summary here. **A couple of examples:** A married couple filing jointly with two qualifying kids under 17 and a household income of $95,000 would generally claim the full $4,400 CTC ($2,200 x 2), reducing their tax bill dollar for dollar. A single parent with one child and $28,000 in earned income but little to no tax liability would instead rely mostly on the ACTC — receiving up to $1,700 as a refund, calculated as 15% of earnings above $2,500. Once a child turns 17, the CTC goes away, though you may still qualify for the $500 Other Dependents Credit if they still qualify as your dependent. That’s when the credits below start to matter more. ### American Opportunity Tax Credit (AOTC) The American Opportunity Tax Credit offers up to **$2,500 per eligible student** for qualified higher education expenses — 100% of the first $2,000 of expenses, plus 25% of the next $2,000. The OBBBA made this credit **permanent**, removing what had been a recurring expiration risk. Income limits for 2025 and 2026: - Full credit: MAGI of $80,000 or less (single) / $160,000 or less (married filing jointly) - Partial credit: MAGI between $80,000-$90,000 (single) / $160,000-$180,000 (joint) - No credit: MAGI above $90,000 (single) / $180,000 (joint) The AOTC only covers a student’s first 4 years of post-secondary education, and the student must be enrolled at least half-time in a degree or credential program. It’s available for the student, you, or your spouse — but not if the student is claimed as a dependent on someone else’s return while also trying to claim it themselves. **A couple of examples:** A parent whose freshman pays $4,000 in tuition and required fees could claim the full $2,500 credit (100% of the first $2,000, plus 25% of the next $2,000), assuming income is under the limit. A married couple filing jointly with $170,000 MAGI would only get a partial credit, since that falls in the $160,000-$180,000 phase-out range. ### Lifetime Learning Credit (LLC) The Lifetime Learning Credit provides up to **$2,000 per tax return** (not per student) for tuition and required fees, and it’s more flexible than the AOTC — it covers all years of post-secondary education plus courses taken to acquire or improve job skills, with no degree requirement. This is also now **permanent** under the OBBBA, and its income limits have been aligned with the AOTC’s: full credit up to $80,000 MAGI (single) / $160,000 (joint), phasing out completely at $90,000 / $180,000. That’s a meaningful change from the LLC’s older, lower thresholds. Only one credit — AOTC or LLC — can be claimed per student per year, so compare which one gets you more before filing. **A couple of examples:** The LLC covers 20% of up to $10,000 in qualified expenses, so a parent taking a single $1,500 professional-certificate course (no degree required) would only get a $300 credit, not the full $1,500 — worth knowing before assuming it works like the AOTC’s first-dollar coverage. A family with two kids in college the same year, both still within the AOTC’s 4-year limit, would generally do better claiming AOTC separately for each student rather than combining expenses under one LLC claim. ### New for 2027: The Federal Scholarship Tax Credit (FSTC) The OBBBA also created an entirely new credit that starts in 2027: the **Federal Scholarship Tax Credit (FSTC)**, sometimes called the Education Freedom Tax Credit. Here’s how it works: individual taxpayers can contribute up to **$1,700 per year** to an IRS-approved Scholarship Granting Organization (SGO) and claim a dollar-for-dollar, nonrefundable federal tax credit for that amount. It’s not a credit for your own child’s tuition directly — it’s a credit for donating to an organization that awards K-12 scholarships, similar to state-level tax-credit scholarship programs that already exist in several states. A few things to know before counting on this one: - **It only works in “covered states.”** A state (or DC) has to formally opt in and submit a list of approved SGOs to the IRS before its residents can claim the credit for donations to that state’s organizations. As of mid-2026, the IRS has confirmed **27 states** have signed on; others are still deciding, and at least two governors have said their states won’t participate. - **You can’t claim it yet.** Contributions only start counting on or after January 1, 2027, and the credit is claimed on **2027 tax returns filed in 2028** — not on the return you’re filing this coming season. - **It’s capped and nonrefundable.** Donate more than $1,700 and you don’t get credit (or a refund) for the excess. If your state opts in, this is worth watching for 2027 — but there’s nothing to do about it on your current tax return. **A couple of examples:** If you live in one of the 27 covered states and donate $1,700 to an approved SGO in January 2027, you’d claim the full $1,700 as a credit on the 2027 return you file in 2028 — regardless of your income. If you donate $2,500 to that same SGO, you’d still only get credit for $1,700; the extra $800 isn’t refunded or carried forward. ### Earned Income Tax Credit (EITC) The EITC supplements the wages of low-income workers and families and lifts more children out of poverty than any other single federal program. See the [current EITC tables and qualification thresholds here](https://savingtoinvest.com/earned-income-tax-credit-eitc-qualification-and-income-threshold-limits/) by filing status and income. **A couple of examples:** A single parent with two kids earning $32,000 a year would likely qualify for a substantial EITC on top of the CTC/ACTC — often several thousand dollars combined. A married couple with no kids and modest income can also qualify for a smaller EITC, since the credit isn’t limited to parents. ### Quick Comparison CreditMax AmountIncome Limit (Single)Income Limit (Joint)StatusChild Tax Credit$2,200/child$200,000$400,000CurrentAdditional Child Tax Credit$1,700/child (refundable)Same as CTCSame as CTCCurrentAmerican Opportunity Tax Credit$2,500/student$90,000 (phases out from $80K)$180,000 (phases out from $160K)Current, now permanentLifetime Learning Credit$2,000/return$90,000 (phases out from $80K)$180,000 (phases out from $160K)Current, now permanentFederal Scholarship Tax Credit$1,700/year (donation)No income limitNo income limitStarts 2027 (covered states only) *[Subscribe here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) and I’ll update this if more states opt into the FSTC or figures change for 2027.* ### Looking Ahead: 2027 2027 is the year to watch: it’s the first year the Federal Scholarship Tax Credit becomes claimable, and more states may still opt in before their SGO lists are due to the IRS. I’ll update the state-participation count and add a state-by-state breakdown once the list firms up closer to the 2027 filing season. Frequently Asked Questions QWhat tax credits can parents claim for their kids? AThe main ones are the Child Tax Credit ($2,200/child under 17) and Additional Child Tax Credit (up to $1,700 refundable). Once kids reach college age, the American Opportunity Tax Credit ($2,500/student) and Lifetime Learning Credit ($2,000/return) can apply to tuition and education expenses. QWhat is the Federal Scholarship Tax Credit (FSTC)? AIt's a new federal credit created by the One Big Beautiful Bill Act that lets individuals donate up to $1,700 per year to an approved Scholarship Granting Organization and claim a dollar-for-dollar, nonrefundable tax credit. It only applies in states that formally opt into the program. QWhen can I claim the Federal Scholarship Tax Credit? AContributions only count starting January 1, 2027, and the credit is claimed on 2027 tax returns filed in 2028. It cannot be claimed on returns filed before then. QWhich states participate in the Federal Scholarship Tax Credit? AAs of mid-2026, the IRS has confirmed 27 states have opted in, with others still deciding. A state must formally elect to participate and submit a list of approved Scholarship Granting Organizations to the IRS before its residents can claim the credit. QCan I claim both the American Opportunity Tax Credit and the Lifetime Learning Credit? ANot for the same student in the same year - you must choose one or the other. You can, however, claim different credits for different students in the same household in the same year. **Categories:** Taxes and Retirement --- ### [2026-2027 Traditional IRA vs. Roth IRA — Contribution Limits and Phase-Out Income Ranges](https://savingtoinvest.com/traditional-ira-versus-roth-ira-contribution-and-phase-out-income-limits/) **Published:** June 25, 2016 **Author:** Andy **Content:** ### Key Takeaways - The 2026 IRA contribution limit is $7,500 (up from $7,000 in 2025). Same limit applies to both traditional and Roth IRAs. - Workers 50 and older can contribute an additional $1,100 catch-up (newly indexed under SECURE 2.0), for a total of $8,600. - Roth IRA phase-out for singles: $153,000-$168,000 MAGI. For MFJ: $242,000-$252,000 - different from some 2025 projections that circulated. - Traditional IRA deductibility phases out at $81,000-$91,000 (single with workplace plan) and $129,000-$149,000 (MFJ, contributor has plan). - Non-working spouse traditional IRA deductibility: $242,000-$252,000 MAGI (MFJ). - Both account types allow the same $7,500 contribution regardless of whether it's deductible. - The backdoor Roth conversion strategy remains available in 2026 - SECURE 2.0 and the OBBB did not change it. - The 2026 mandatory Roth catch-up rule for high earners applies to 401(k)/403(b)/457(b) plans - it does NOT apply to IRA catch-up contributions. For 2026, the IRA contribution limit is **$7,500** — the first increase from the $7,000 limit that held for 2024 and 2025. Whether you’re putting money into a traditional IRA or a Roth IRA, that’s your combined ceiling across all IRA accounts. The IRS announced this increase in [IR-2025-111](https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500), along with updated income phase-out ranges. A few of the Roth IRA ranges are different from what some 2025 forecast tables showed — so double-check your numbers. Covered in this Article: [Toggle](#) - [2026 IRA Contribution Limits](#2026_IRA_Contribution_Limits) - [2026 Roth IRA Income Phase-Out Ranges](#2026_Roth_IRA_Income_Phase-Out_Ranges) - [2026 Traditional IRA Deductibility Phase-Out Ranges](#2026_Traditional_IRA_Deductibility_Phase-Out_Ranges) - [IRA Contribution Deadline for 2026](#IRA_Contribution_Deadline_for_2026) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027](#Looking_Ahead_2027) ## 2026 IRA Contribution Limits Contribution Type2024202520262027 (est.)Standard (under 50)$7,000$7,000$7,500$7,500Catch-up (age 50+)$1,000$1,000$1,100$1,100Total (age 50+)$8,000$8,000$8,600$8,600 **Looking ahead to 2027:** The IRA base limit is expected to hold at **$7,500** — it would need to reach $7,750 to trigger the next $500 rounding step to $8,000. The catch-up stays at **$1,100** at ~2.5% COLA. Official figures arrive in October/November 2026. The $7,500 limit is your combined ceiling across all traditional and Roth IRAs. You can split contributions between the two — say $3,000 to a traditional and $4,500 to a Roth — but the total can’t exceed $7,500. The catch-up increase from $1,000 to $1,100 is new for 2026. SECURE 2.0 Act indexed the IRA catch-up to inflation starting in 2024, and this is the first year it’s actually moved. ### The 2026 Roth Catch-Up Mandate Doesn’t Apply to IRAs If you’ve seen headlines about a new “Roth catch-up mandate” for 2026, it’s worth clarifying: that rule applies to **401(k), 403(b), and governmental 457(b) plans** — not to IRAs. Starting January 1, 2026, workers 50+ who earned more than $150,000 in FICA wages (Box 3 of their W-2) from their current employer in 2025 must make their employer-plan catch-up contributions as Roth (after-tax), under SECURE 2.0 Section 603. Treasury and the IRS finalized this rule on September 16, 2025, with 2026 treated as a good-faith compliance year. Your **IRA catch-up** ($1,100 for 2026) isn’t affected by this at all — it can still be pre-tax if you’re contributing to a traditional IRA, regardless of your income. For the full rundown of how the employer-plan mandate works, see the [401(k), 403(b) & TSP contribution limits page](https://savingtoinvest.com/taking-advantage-of-new-401k/). ## 2026 Roth IRA Income Phase-Out Ranges This is where I want to flag some inaccuracies that have been circulating. Several sites still show 2026 Roth IRA ranges that were early projections — the confirmed IRS numbers are different. Filing Status2025 Phase-Out2026 Phase-Out2027 (est.)Single / Head of Household$150,000–$165,000$153,000–$168,000~$157,000–$172,000Married Filing Jointly$236,000–$246,000$242,000–$252,000~$248,000–$258,000Married Filing Separately$0–$10,000$0–$10,000$0–$10,000 **Looking ahead to 2027:** Roth IRA phase-out ranges have been shifting by $3,000–$6,000 per year recently. For 2027, the single range is estimated at ~$157,000–$172,000 and MFJ at ~$248,000–$258,000. Confirmed figures arrive in October/November 2026. Within the phase-out range, your contribution limit is reduced pro-rata. Above the top of the range, you cannot contribute directly to a Roth IRA at all. **The backdoor Roth:** If your income exceeds the Roth phase-out, you can still get money into a Roth via a two-step process: contribute to a non-deductible traditional IRA (no income limit), then convert it to Roth. This strategy is fully legal in 2026. One caveat: if you have pre-tax money in other traditional IRAs, the pro-rata rule means part of your conversion will be taxable. Ask a tax professional if this applies to you. **On Roth timing:** The One Big Beautiful Bill (OBBB) extended the pre-2017 TCJA income tax rates through 2033. For people on the fence about converting to Roth, locking in today’s rates for the next seven-plus years is a meaningful argument. I’m not in the business of giving personalized tax advice, but I’ll say the rate certainty does change the calculus for some. ## 2026 Traditional IRA Deductibility Phase-Out Ranges You can always contribute to a traditional IRA regardless of income. But whether your contribution is tax-deductible depends on your income and whether you or your spouse have a workplace retirement plan. **If you have a workplace plan ([401(k) or 403(b)](https://savingtoinvest.com/taking-advantage-of-new-401k/), [SEP IRA](https://savingtoinvest.com/sep-ira-rules-and-contribution-limits/), [SIMPLE IRA](https://savingtoinvest.com/simple-ira-contribution-and-income-limits-small-business-retirement-plans/), etc.):** Filing Status2025 Phase-Out2026 Phase-Out2027 (est.)Single / HoH$79,000–$89,000$81,000–$91,000~$83,000–$93,000Married Filing Jointly$126,000–$146,000$129,000–$149,000~$132,000–$152,000Married Filing Separately$0–$10,000$0–$10,000$0–$10,000 **Looking ahead to 2027:** Deductibility phase-out ranges typically shift by $2,000–$3,000 per year. Expect the single range to move to approximately $83,000–$93,000 and the MFJ range to $132,000–$152,000. **If only your spouse has a workplace plan (you don’t):** Filing Status2025 Phase-Out2026 Phase-Out2027 (est.)Married Filing Jointly$236,000–$246,000$242,000–$252,000~$248,000–$258,000 Within the phase-out range, your deductible amount is reduced. Above the top, your contribution is non-deductible (you still contribute the same $7,500 — you just don’t get a deduction for it). Non-deductible contributions create a “basis” in your IRA that’s tracked on Form 8606. ### Traditional vs. Roth: A Side-by-Side FeatureTraditional IRARoth IRA2026 limit$7,500 ($8,600 for 50+)$7,500 ($8,600 for 50+)Tax treatmentPre-tax (if deductible)After-taxIncome limitNone (deduction phases out)$168,000 / $252,000 maxWithdrawalsTaxed as ordinary incomeTax-free (qualified)RMDs required?Yes, starting at age 73No RMDs during owner’s lifetimeBest forExpect lower taxes in retirementExpect higher taxes in retirement ### Examples: Which Account Makes Sense? **Ana**, 34, earns $55,000 (single, no workplace plan). She can contribute a fully deductible $7,500 to a traditional IRA — her income is below both phase-out ranges. She’s early in her career, so she might also consider a Roth IRA for the tax-free growth, especially since she expects to be in a higher bracket later. **Carlos**, 52, earns $95,000 (single, has a 401(k) at work). His traditional IRA deduction phases out between $81,000 and $91,000. At $95,000, he gets no deduction. He can still contribute $8,600 (catch-up eligible) as a non-deductible traditional IRA contribution — and may want to consider converting it to Roth (backdoor Roth) to avoid the complexity of tracking non-deductible basis over time. **Rachel and David**, both 55, earn $200,000 combined MFJ. They both have workplace plans. Their traditional IRA deduction phases out between $129,000 and $149,000 — so at $200,000, no deduction. But they each can still contribute $8,600 to non-deductible traditional IRAs, or they could use the backdoor Roth. Their Roth IRA income ($200,000) falls within the MFJ phase-out range ($242,000–$252,000), so they actually could contribute to Roth directly, with no phase-out reduction. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get 2027 limits as soon as the IRS announces them in October or November.* ## IRA Contribution Deadline for 2026 You have until **April 15, 2027** to make contributions for the 2026 tax year. (If April 15 falls on a weekend or holiday, the deadline shifts to the next business day.) Unlike 401(k) plans, the IRA deadline is the filing deadline — not December 31. That’s both a deadline and an opportunity. If you get a tax refund and want to put it to work retroactively for the prior year, you have until April 15. Just make sure you designate it as a 2026 contribution when you make the deposit. ## Common Issues to Watch Out For **1. Contributing to a Roth above the income limit.** An excess Roth IRA contribution is subject to a 6% excise tax per year until corrected. If your income pushed you above $168,000 (single) or $252,000 (MFJ) in 2026, you either need to recharacterize the contribution, withdraw it plus earnings, or apply it to a different year. The sooner you catch it, the simpler the fix. **2. Confusing the $7,500 as per-account vs. combined.** If you have three IRAs, the $7,500 is the total across all of them — not $7,500 per account. This applies whether they’re at different brokerage firms or not. **3. Thinking you can’t contribute if you don’t have a deduction.** Non-deductible traditional IRA contributions are perfectly legal and can be converted to Roth (backdoor Roth). The downside is tracking the basis on Form 8606 — which gets messy if you also have pre-tax IRA money. **4. The spousal IRA.** A married couple where one partner has little or no earned income can still fund two full IRAs — $7,500 each ($8,600 for 50+) — as long as the working spouse has enough earned income to cover both. This “spousal IRA” rule is frequently overlooked and can double your retirement savings. **5. Treating Roth conversions as a contribution.** Roth conversions don’t count toward the $7,500 annual contribution limit. You can convert $50,000 from a traditional IRA to a Roth in 2026 and still make a $7,500 fresh Roth IRA contribution in the same year (assuming you’re under the income limit). **6. Assuming the 2026 Roth catch-up mandate applies to your IRA.** It doesn’t — that rule is specific to 401(k)/403(b)/457(b) employer plans. Your IRA catch-up stays pre-tax-eligible regardless of income. ## Looking Ahead: 2027 Based on [~2.5% COLA trends](https://savingtoinvest.com/social-security-tax-and-cost-of-living-adjustment-cola/), here are the 2027 projections: 20262027 (est.)IRA / Roth IRA limit (under 50)$7,500$7,500Catch-up (age 50+)$1,100$1,100Total (age 50+)$8,600$8,600Roth single phase-out$153,000–$168,000~$157,000–$172,000Roth MFJ phase-out$242,000–$252,000~$248,000–$258,000Trad. deduction single$81,000–$91,000~$83,000–$93,000Trad. deduction MFJ$129,000–$149,000~$132,000–$152,000 Official IRS figures arrive in October or November 2026. I’ll update this page as soon as the numbers drop. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get 2027 limits as soon as they’re announced.* For the complete 2026 retirement contribution limit picture, including 401(k), SEP IRA, and SIMPLE IRA, see the [401(k) and IRA contribution limits hub](https://savingtoinvest.com/401k-ira-and-roth-ira-contribution-and-income-limits/). Frequently Asked Questions QWhat is the IRA contribution limit for 2026? AThe 2026 IRA contribution limit is $7,500, up from $7,000 in 2024-2025. This is the combined limit across all traditional and Roth IRAs you hold. Workers aged 50 and older can contribute an additional $1,100 catch-up (newly indexed under SECURE 2.0), for a total of $8,600. QWhat are the Roth IRA income limits for 2026? AFor 2026, the Roth IRA phase-out range is $153,000-$168,000 MAGI for single filers and $242,000-$252,000 for married filing jointly. Above the top of the range, you cannot contribute directly but can use the backdoor Roth strategy. QWhat is the traditional IRA deduction phase-out for 2026? AIf you have a workplace retirement plan, your traditional IRA deduction phases out at $81,000-$91,000 MAGI for single filers and $129,000-$149,000 for married filing jointly. If you don't have a plan but your spouse does, the phase-out is $242,000-$252,000 MFJ. QWhat is the difference between a traditional IRA and a Roth IRA? ATraditional IRA contributions may be tax-deductible, and withdrawals in retirement are taxed as ordinary income. Roth IRA contributions are after-tax, but qualified withdrawals in retirement are completely tax-free. Roth IRAs also have no required minimum distributions (RMDs) during the owner's lifetime, while traditional IRAs require RMDs starting at age 73. QCan I contribute to both a traditional IRA and a Roth IRA in 2026? AYes, but your combined contributions across both accounts cannot exceed $7,500 ($8,600 for age 50+). For example, you could put $3,000 in a traditional IRA and $4,500 in a Roth IRA. QWhat is the backdoor Roth IRA and is it still allowed in 2026? AThe backdoor Roth is a two-step strategy: contribute to a non-deductible traditional IRA (no income limit), then convert it to a Roth IRA. It is still fully allowed in 2026. SECURE 2.0 and the One Big Beautiful Bill did not eliminate it. However, the pro-rata rule can make part of your conversion taxable if you have other pre-tax IRA balances. QDoes the 2026 Roth catch-up mandate for high earners apply to my IRA? ANo. The mandatory Roth catch-up rule under SECURE 2.0 Section 603 applies only to 401(k), 403(b), and governmental 457(b) employer plans for participants who earned over $150,000 in FICA wages from their employer in 2025. It does not affect IRA catch-up contributions, which remain eligible for pre-tax treatment in a traditional IRA regardless of income. **Categories:** Taxes and Retirement **Tags:** 401K, IRA, retirement, Roth IRA, taxes --- ### [What to Expect This Tax Season — Answers to the 7 Questions I Get Asked Most](https://savingtoinvest.com/answers-to-the-top-7-most-searched-for-tax-questions/) **Published:** February 10, 2017 **Author:** Andy **Content:** ### Key Takeaways - The 2026-2027 season (for 2026 tax year returns) is expected to open in late January 2027, with an April 15, 2027 deadline; exact dates aren't confirmed yet. - IRS Direct File remains discontinued; IRS Free File and Free File Fillable Forms are still your free options. - 2026 tax year minimum filing thresholds rise to $16,100 single (under 65) and $32,200 married filing jointly (both under 65); self-employed filers must file at just $400 in net earnings. - W-2s and 1099s will now separately report qualified tips and overtime - only amounts reported in those new boxes qualify for the OBBBA deductions this season, so confirm your employer is tracking this correctly. - The National Taxpayer Advocate found over 14 million returns suspended for review and a 21% phone answer rate during the 2025-2026 season - expect similar strain and use online tools over the phone. - The IRS audit rate remains under 0.5% overall, and most audits are now handled by mail rather than in person. Every year I get the same handful of questions from readers gearing up for the next filing season: when can I file, how do I file for free, how much will I get back, and why does the IRS take so long to pay it. This year’s answers lean forward — toward the 2026-2027 season, when you’ll file your 2026 tax year return. I’m also folding in what the just-finished 2025-2026 season (filing your 2025 return) actually taught us, since several of those lessons carry directly into what to expect next. Covered in this Article: [Toggle](#) - [When Can I File My 2026 Taxes?](#When_Can_I_File_My_2026_Taxes) - [How Can I File My 2026 Taxes for Free?](#How_Can_I_File_My_2026_Taxes_for_Free) - [Can I File a Tax Extension for My 2026 Return?](#Can_I_File_a_Tax_Extension_for_My_2026_Return) - [How Much Will I Need to Make to Be Required to File My 2026 Return?](#How_Much_Will_I_Need_to_Make_to_Be_Required_to_File_My_2026_Return) - [What’s Actually New for the 2026-2027 Season?](#Whats_Actually_New_for_the_2026-2027_Season) - [When Will I Get My 2026 Tax Refund?](#When_Will_I_Get_My_2026_Tax_Refund) - [Why Might My Refund Be Delayed This Year?](#Why_Might_My_Refund_Be_Delayed_This_Year) - [What Are the Odds I Get Audited by the IRS?](#What_Are_the_Odds_I_Get_Audited_by_the_IRS) - [Looking Ahead: 2027-2028 Season](#Looking_Ahead_2027-2028_Season) ## When Can I File My 2026 Taxes? The IRS hasn’t confirmed exact 2026-2027 season dates yet — it typically announces the opening date in early-to-mid January. Going by pattern, expect the season to open in the last week of January 2027, with the filing deadline landing on **April 15, 2027**. Employers must send W-2s by January 31, 2027, so you’ll have what you need shortly after the season opens. Lesson from this year: the 2025-2026 season saw the IRS deliberately shift resources away from phone service toward processing correspondence and account issues, since a shrunken workforce couldn’t handle both. Assume something similar this year — plan on getting answers online rather than by phone if you can. [See the full deadline breakdown here](https://savingtoinvest.com/when-can-i-file-my-taxes-and-other-key-tax-filing-extension-and-refund-dates/). ## How Can I File My 2026 Taxes for Free? Nothing new to report here since the 2025-2026 season, which is itself the headline: the IRS’s **Direct File** program — its own free-filing tool — was discontinued starting with the 2026 filing season and hasn’t come back. If you used it in 2024 or 2025, that option is gone for good barring a policy reversal. **IRS Free File** is still running — a public-private partnership letting qualifying filers (based on income) e-file free through participating [tax software providers](https://savingtoinvest.com/the-best-tax-software-and-free-filing-options-as-tax-filing-goes-primarily-online/). Above the income threshold, **Free File Fillable Forms** remain open to everyone. **VITA** and **TCE** still offer free in-person help for people earning under roughly $67,000, people with disabilities, and limited-English speakers, and **MilTax** remains free for service members, eligible family, and recent veterans. ## Can I File a Tax Extension for My 2026 Return? Yes — same as always, the IRS grants an automatic 6-month filing extension if you request it by the filing deadline, no explanation required. An extension buys you more time to *file*, not more time to *pay*; any balance owed is still due April 15, 2027, or you’ll accrue interest and penalties. [Request an extension directly through the IRS](https://savingtoinvest.com/should-you-file-a-tax-return-or-file-a-tax-extension/), or let your tax software file it for you. ## How Much Will I Need to Make to Be Required to File My 2026 Return? The IRS’s official 2026 tax year figures, based on the standard deduction amounts already released: Filing StatusUnder 6565 or OlderSingle$16,100$18,150Married Filing Jointly (both under 65)$32,200—Married Filing Jointly (one 65+)—$34,250Married Filing Jointly (both 65+)—$36,300Married Filing Separately$5$5 Self-employed filers have a much lower, non-inflation-adjusted bar: you must file if net self-employment earnings are at least $400, regardless of total income. These are slightly higher than last year’s 2025 tax year thresholds ($15,750 single / $31,500 MFJ), reflecting the roughly 2.7% inflation adjustment plus an extra bump Congress built in for the bottom two brackets under the One Big Beautiful Bill Act (OBBBA). ![Common IRS Tax Questions](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2017/02/Snip20170210_40.png?resize=123%2C150&ssl=1)Common IRS Tax Questions## What’s Actually New for the 2026-2027 Season? This is the one worth reading closely if you claim tips or overtime pay. The OBBBA’s “no tax on tips” and “no tax on overtime” deductions were technically available for the 2025-2026 season too, but employers’ W-2 and 1099 forms weren’t yet built to separately report qualified tips or overtime — so a lot of filers had to estimate, and some tax software struggled to handle it cleanly. For the 2026-2027 season, the IRS has directed that Forms W-2, 1099-NEC, 1099-MISC, and 1099-K be updated to include dedicated boxes for qualified tips and qualified overtime. Only amounts separately reported in those boxes will be deductible going forward, so check your pay stubs or ask your employer/payroll provider now whether they’re tracking this correctly — a mislabeled or missing box could cost you the deduction. The overtime deduction caps at $12,500 ($25,000 for joint filers); the tips deduction is capped at $25,000 for eligible occupations. A few other changes carrying into 2026 tax year returns: the SALT (state and local tax) deduction cap rises to $40,400, phasing down for filers with income above $505,000; and the new $6,000 “senior bonus” deduction for taxpayers 65+ continues, phasing out at higher incomes. ## When Will I Get My 2026 Tax Refund? The IRS’s standard is still to issue refunds within 21 days of accepting an e-filed return, covering roughly 9 out of 10 refunds; paper returns take 6 weeks or more. That target held up through the 2025-2026 season on paper, but the experience behind it got harder — the National Taxpayer Advocate’s 2026 mid-year report found the IRS suspended more than 14 million returns for further review and roughly 1 million taxpayers waited an average of 5.5 weeks beyond normal processing time. Track your status with [Where’s My Refund (WMR) or the IRS2Go app](https://savingtoinvest.com/wmr-and-irs2go-status-differences-return-received-accepted-or-under-review-and-refund-approved-versus-refund-sent/) rather than by phone — the IRS answered only about 21% of the 48 million calls it received last season, with average wait times of 14 minutes, up from 8 the year before. Amended returns use the separate [Where’s My Amended Return (WMAR)](https://savingtoinvest.com/wheres-my-amended-tax-return-and-when-will-i-get-my-refund/) tool and take considerably longer. Your [free IRS tax transcript](https://savingtoinvest.com/getting-a-free-copy-of-your-irs-tax-return-information-form-4506t-irs-tax-transcript/) is often the fastest way to see exactly where things stand. *[Subscribe here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) and I’ll flag any changes to these guidelines as the season develops.* ## Why Might My Refund Be Delayed This Year? The 21-day window is a target, not a guarantee, and the causes of delay haven’t changed: identity verification holds, mismatches between your return and third-party records, or [PATH Act](https://savingtoinvest.com/tax-refund-payment-delays-likely-according-to-the-irs/) holds if you claim the Earned Income Tax Credit or Additional Child Tax Credit — those refunds are held by law until at least mid-to-late February regardless of filing date. What’s new is the scale of the backlog behind those delays. IRS staffing was down roughly 27% heading into the 2025-2026 season, and identity-theft casework alone had a backlog of over 500,000 cases running close to two years to resolve. There’s no indication staffing is being rebuilt for 2026-2027, so if your return gets flagged for review, expect it to take a while — and lean on the online tools above rather than the phone. [See my complete breakdown of refund delays here](https://savingtoinvest.com/why-is-it-taking-so-long-to-get-my-tax-refund/). ## What Are the Odds I Get Audited by the IRS? Lower than most people assume. The overall audit rate is under 0.5% of returns filed, climbing with income but still landing below the IRS’s own stated targets for high earners due to the same staffing cuts mentioned above. [See the full current numbers and what actually triggers a closer look here](https://savingtoinvest.com/irs-audit-triggers-and-red-flags-for/). One trend to know about heading into this season: correspondence audits (a mailed request for documentation, not an in-person meeting) are up and now make up the large majority of audits, as a smaller IRS workforce leans on cheaper, mail-based review. If you get one, respond by the deadline, loop in your preparer, and keep supporting records for at least 3 years after filing — 6 years if the IRS flags a substantial income understatement. ## Looking Ahead: 2027-2028 Season Watch for the IRS to confirm official 2026-2027 season dates in January 2027, and for the next round of inflation-adjusted figures (covering 2027 tax year returns) to be released around October or November 2027. I’ll also be watching whether the tips/overtime W-2 reporting rollout goes smoothly this season, or whether it creates the kind of confusion that pushes the IRS to issue transition relief again. Frequently Asked Questions QWhen does the 2026-2027 tax filing season start? AThe IRS hasn't confirmed the exact date yet, but based on past years it's expected to open in late January 2027, with an April 15, 2027 filing deadline for 2026 tax year returns. QIs IRS Direct File available for the 2026-2027 season? ANo. The IRS discontinued Direct File starting with the 2026 filing season, and it remains unavailable. IRS Free File and Free File Fillable Forms are still available as free filing options. QHow much money do I need to make to be required to file my 2026 tax return? AFor 2026 tax year returns, the threshold is $16,100 for single filers under 65 and $32,200 for married couples filing jointly (both under 65). Self-employed individuals must file if net earnings are at least $400. QWhat's different about the no-tax-on-tips and no-tax-on-overtime deductions this season? AStarting with 2026 tax year returns, W-2s and 1099s will separately report qualified tips and overtime pay. Only amounts reported in those dedicated boxes qualify for the deduction, unlike the 2025-2026 season when many filers had to estimate because the forms weren't yet updated. QWhy might my refund be delayed during the 2026-2027 season? ACommon causes include identity verification holds, recordkeeping mismatches, and PATH Act holds on returns claiming the Earned Income Tax Credit or Additional Child Tax Credit. IRS staffing cuts and a large case backlog also mean flagged returns may take longer to clear than in past years. QWhat are the chances of getting audited by the IRS? AThe overall audit rate is under 0.5% of returns filed, rising with income. Most audits are now correspondence audits handled by mail rather than in-person examinations. **Categories:** Taxes and Retirement **Tags:** Audit, Filing, IRS, refund, tax --- ### [Got an IRS Notice? Here's the Actual Timeline for Responding and Getting Paid](https://savingtoinvest.com/how-long-do-i-have-to-wait-after-an-irs-notice-to-get-my-tax-refund/) **Published:** March 1, 2022 **Author:** Andy **Content:** ### Key Takeaways - The IRS generally takes up to 30 days to send a notice after flagging a return for review, and up to 90-120 days for cases needing manual or special handling. - You typically have 30 days to respond to a notice, though the exact deadline depends on the notice type - CP2000 gives 30 days domestically, math-error notices give 60 days, and a Notice of Deficiency gives 90 days to petition Tax Court. - After you respond, expect up to 60 more days for the IRS to close the case, and 6-8 weeks for your refund once an adjusted return is signed and returned. - IRS phone wait times have increased significantly this filing season due to reduced staffing - online account tools are faster for simple status checks. - Identity-verification holds (5071C/CP5071) can add up to 60 more days after you verify, on top of any time already elapsed. A lot of filers feel a sense of dread the moment they get an IRS notice or letter asking for more information, action, or warning of a possible audit. The real question underneath that dread is almost always about timing: how long will this delay my refund, and how long do I actually have to deal with it. Here’s the timeline the IRS actually works on, based on its own published guidelines. Covered in this Article: [Toggle](#) - [IRS Notice Timing](#IRS_Notice_Timing) - [Tax Filer Response Timelines to IRS Notices](#Tax_Filer_Response_Timelines_to_IRS_Notices) - [What Happens After I Respond to the IRS](#What_Happens_After_I_Respond_to_the_IRS) - [When Will I Get My Refund Payment?](#When_Will_I_Get_My_Refund_Payment) - [When Can I Contact the IRS About a Notice or Letter?](#When_Can_I_Contact_the_IRS_About_a_Notice_or_Letter) - [Looking Ahead: 2027 Filing Season](#Looking_Ahead_2027_Filing_Season) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) ## IRS Notice Timing Normally the IRS takes up to **30 days** to complete an additional review before sending a formal notice — for example, a [CP05 notice]() — to the filer. During peak filing season (February through April), when [processing delays]() are more common, the IRS has said cases needing special or manual handling can take **90 to 120 days**. That covers returns with refundable credit amounts the IRS can’t resolve internally, returns missing significant information, and cases with suspected identity theft or fraud. If your hold is specifically tied to identity verification — a [5071C or CP5071 letter]() — expect it to run on the longer end of that window. The IRS has leaned harder on identity and data-matching filters this filing season, and verified returns have still faced holds of up to 60 days after you complete verification, on top of whatever time already passed before you got the letter. ## Tax Filer Response Timelines to IRS Notices Generally, the IRS expects a response **within 30 days** of an official notice, though some notices set a specific date instead. Miss it and you risk interest charges, penalties, or — worse — losing your right to appeal. Not every notice runs on the same clock, and mixing them up is an easy, costly mistake. A **CP2000** (the underreported-income notice) typically gives you 30 days domestically, 60 days if you’re outside the U.S. A **math-error notice** — where the IRS corrects a calculation and assesses tax without an audit — gives you 60 days to challenge it, and starting in late 2026, a new law requires the IRS to spell out the error and that 60-day window more clearly than it has in the past. See the [IRS’s CP2000 series notice page](https://www.irs.gov/individuals/understanding-your-cp2000-series-notice) for the specifics on your own notice type. ## What Happens After I Respond to the IRS After you respond, it can take up to **60 more days** for the IRS to review your response and close the case. That timeline shortens considerably if you respond promptly with accurate, complete information. If you disagree with the proposed changes, you can appeal or request a meeting with an IRS examiner, but you have **90 days** to reach a resolution before the IRS can issue a Notice of Deficiency. That 90-day figure is specifically about your right to petition Tax Court — it’s a different clock than the 60-day math-error window above, so check which notice you actually received before assuming your deadline. ## When Will I Get My Refund Payment? Once you’ve signed and returned an adjusted return, expect your refund or tax bill within **6 to 8 weeks** of the latest notice date. If you owe money, IRS payment plans are available instead of a lump-sum payment. *I’ll keep this page updated if the IRS changes any of these windows — [subscribe here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get notified.* ## When Can I Contact the IRS About a Notice or Letter? Most of this can be handled without calling or visiting an office, but if you do need to call, use the number in the upper right-hand corner of your notice. Have your tax return and the notice itself in hand so the agent can pull up your account quickly. Budget real time for this call — [expect to be on hold for a while]() given the current staffing situation. The [National Taxpayer Advocate’s 2026 report](https://www.irs.gov/newsroom/national-taxpayer-advocate-issues-2026-mid-year-report-to-congress) found average hold times climbing to around 14 minutes on the main taxpayer lines, up from about 8 minutes the prior year, following the roughly 27% reduction in IRS staffing. Some individual lines have run considerably longer during peak weeks. If you’re just checking status rather than resolving a dispute, the IRS’s online account tools are faster than calling. If you’re writing in instead, allow at least **30 days** for a response to correspondence sent to the address on your notice. ## Looking Ahead: 2027 Filing Season I’d expect these response windows to hold steady — they’re set by statute and IRS procedure, not by year — but two things are worth watching. The new math-error notice disclosure requirement phases in through late 2026, so notices issued for the 2027 filing season should come with clearer explanations of your 60-day window than in past years. And if IRS staffing stays reduced, I wouldn’t expect phone wait times to improve; lean on the online account tools where you can. I’ll update this page once the IRS publishes new phone-service or processing-time data for the 2027 season. ## Common Issues to Watch Out For - **Confusing the 60-day math-error window with the 90-day Tax Court deadline.** They’re triggered by different notices and give you different rights — a math-error notice has no right to petition Tax Court, while a Notice of Deficiency does. - **Assuming “30 days” always means the same thing.** Some notices set a specific calendar date instead of a rolling 30-day window — always check the actual date printed on your notice. - **Waiting on hold instead of using online tools.** For simple status checks, your IRS online account is faster than the phone line this filing season. - **Sending a response late without calling ahead.** If you’re going to miss a deadline, call the number on the notice before it passes — it’s better than letting it lapse silently. Frequently Asked Questions QHow long does it take the IRS to send a notice after reviewing my return? ATypically up to 30 days for a standard review. Cases needing special or manual handling - refundable credit issues, missing information, or suspected fraud - can take 90 to 120 days, especially during peak filing season. QHow long do I have to respond to an IRS notice? AGenerally 30 days, though the specific deadline varies by notice type. A CP2000 gives 30 days domestically, a math-error notice gives 60 days, and a Notice of Deficiency gives you 90 days to petition Tax Court. Always check the exact date printed on your notice. QHow long after I respond does it take the IRS to close my case? AUp to 60 more days, though it's often faster if your response is complete and accurate the first time. QHow long does it take to get my refund after resolving an IRS notice? AAround 6 to 8 weeks after you sign and return an adjusted return, assuming no further issues come up. QWhy are IRS phone wait times so long right now? AThe IRS has reduced staffing by roughly 27% recently, and the National Taxpayer Advocate's 2026 report found average hold times have increased to around 14 minutes on major taxpayer lines. Using your IRS online account for simple status checks is usually faster than calling. QDoes an identity-verification letter add extra time? AYes. A 5071C or CP5071 letter can add up to 60 more days after you complete verification, on top of whatever processing time already passed before you received it. **Categories:** Taxes and Retirement --- ### [Using AI to Analyze Your IRS Tax Transcript for 2026 Refund Payment Dates](https://savingtoinvest.com/using-ai-to-analyze-your-tax-transcript-for-refund-payment-dates/) **Published:** February 4, 2026 **Author:** Andy **Content:** ### Key Takeaways - You can upload a redacted photo of your IRS tax transcript to Claude, ChatGPT, or Gemini and get an accurate, plain-English breakdown of your refund amount and transaction codes. - Always redact your SSN, full account/routing numbers, and address before uploading - treat any AI chat like a public form, not a private document. - AI correctly identifies PATH Act holds, missing Code 846, and cycle code timing in testing across roughly 10 real transcripts. - AI output is a helpful translation layer, not an official source - always verify against WMR, IRS2Go, or your actual transcript. - Security experts and outlets including CBS News and Bloomberg are actively warning against using AI to fully prepare or file your tax return, as opposed to just reading a transcript. - No AI provider or the IRS has issued formal tax-specific privacy guidance yet as of this update - check for temporary/non-retained chat options in your AI tool as a safer default. At this time of year, plenty of people are waiting on their tax refunds and regularly checking their IRS tax transcripts for clues on their refund amount and payment date. In the past, that meant scouring forums and blog posts to decipher what various [tax codes](), [payment dates](), and [cycle codes]() meant on your [free IRS tax transcript](). AI has made this a lot faster. You can now upload a screenshot or photo of your transcript to a tool like Claude, ChatGPT, or Gemini and get a plain-English breakdown of what every code and date actually means, in seconds. I tested this against about 10 different real tax transcripts and was genuinely impressed with the results — the AI correctly worked out exact refund amounts and gave a clear read on the codes and dates involved. But there’s a real privacy tradeoff here that’s worth understanding before you try it yourself, which I’ll cover below. ### Three Simple Steps to Get AI to Analyze Your Tax Transcript 1. Get your [free IRS tax transcript]() from your official IRS online account, and take a screenshot or photo of it. 2. **Redact sensitive data first** — black out your name, SSN, address, and any bank account or routing numbers before uploading anywhere. Most phone photo editors and screenshot tools let you draw or blur over this. 3. Upload the redacted image to your AI tool of choice and ask something like *“What is my refund?”* or *“Help me understand my tax transcript.”* 4. Review the output, then keep prompting for more detail on anything you don’t understand — a specific code, a date, or why a line item looks off. That’s it. It’s probably only a matter of time before AI is filing entire returns automatically, but reading a transcript is a much lower-stakes place to start. [![1040 Account Transcript](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2026/02/image-7.png?resize=820%2C763&ssl=1)](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2026/02/image-7.png?ssl=1) ### Before You Upload Anything: The Privacy Risk This is the part I want to be direct about. Entering your Social Security number, income figures, employer details, or bank routing information into any AI chatbot is functionally the same as submitting that data to an online form you don’t control. Once it leaves your device, you no longer control how it’s stored, and tax data is one of the most valuable targets there is for identity thieves. Security researchers and outlets like [CBS News](https://www.cbsnews.com/news/can-you-use-ai-for-taxes-chatgpt-claude-irs/) and [Bloomberg](https://www.bloomberg.com/news/articles/2026-03-18/claude-and-chatgpt-tax-prep-is-here-use-caution) have both flagged this directly in 2026 as AI tax tools have taken off. A former IRS commissioner’s warning sums it up well: be very wary of feeding AI tools sensitive personal information, and don’t assume your data won’t be retained or used commercially unless the tool explicitly says otherwise. My practical rule: redact SSN, full account numbers, and your address every time, regardless of which AI tool you’re using or how much you trust it. The refund amount, transaction codes, and dates are all you actually need visible for the AI to do useful analysis. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) and I’ll flag it here if any AI provider changes how it handles uploaded tax documents.* ### Example: PATH Act Delays and Refund Payments Here’s a real example (redacted) from last season showing how this works in practice. You can use AI to analyze your transcript or an IRS WMR/IRS2Go message and get a plain-language read on why your refund is delayed — for example, around [PATH Act]() holds. Paste in the (redacted) image and ask something like: *“What does this IRS message mean, and give me reasons why my IRS refund is delayed.”* ![Example IRS tax transcript for AI analysis](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2026/02/image-3.png?resize=820%2C970&ssl=1)Here’s what the AI came back with for that transcript: **Summary of Account Status:** the most important figure is the Account Balance, shown as **-$5,854.00**. In IRS terms, a minus sign signifies a credit — meaning this filer was owed a refund of $5,854. **Transaction Breakdown:** CodeExplanationAmountNotes150Tax return filed$0.00Return processed; actual tax liability is zero806W-2 or 1099 withholding-$88.00Taxes already withheld from paychecks766Credit to your account-$2,568.00Likely a refundable credit (e.g. Child Tax Credit)768Earned income credit-$3,198.00Refundable credit for low-to-moderate income workers **Key Observations & Timeline:** the IRS had set a processing date, and the cycle code indicated a weekly account (updated on Fridays). Critically, the AI flagged that there was **no Code 846 (Refund Issued)** on this transcript yet — meaning the credits were calculated, but the IRS hadn’t yet authorized releasing the funds. The AI also correctly identified that since this filer claimed the Earned Income Credit (Code 768), the refund was subject to the [PATH Act]() — federal law that blocks the IRS from issuing EITC/ACTC refunds before mid-February, specifically to help prevent fraud. It also correctly advised the filer to check back in a few days for **[Code 846]()** (“Refund Issued”), which would show the specific date the IRS expects to send the money. ![WMR IRS2Go status message](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2026/02/image-4.png?resize=234%2C300&ssl=1)For the same filer’s WMR/IRS2Go message, the AI’s read was similarly accurate: the return had been received and processed (“Code 150” with a processing date), no further action was needed from the filer, and the reason for the “Return Received” status (rather than “Refund Approved”) was the same PATH Act hold on the Earned Income Credit. It correctly predicted the status would move to “Refund Approved” once the PATH Act hold lifted, and that Code 846 would appear on the transcript before the WMR app updated — which is exactly what the [hub glossary of transcript codes]() also confirms. ### Common Issues to Watch Out For I get questions from readers trying this themselves, so a few things worth flagging: - **AI output is not official.** Treat it as a translation layer, not a source of truth. Always cross-check against WMR, IRS2Go, or your actual transcript before making financial decisions based on what the AI tells you. - **Redact every time, not just sometimes.** It’s tempting to skip redaction on a “quick check” — don’t. Make it a habit regardless of the tool. - **AI can still misread cycle codes or dates**, especially on lower-quality photos. If a code or amount looks off, zoom in and re-upload a clearer image rather than trusting a guess. - **Don’t use this as a substitute for filing.** AI reading your transcript is very different from AI preparing your return — see the caution below on using AI to actually file. - **Watch for AI confidently citing outdated code meanings.** Tax transcript codes occasionally get updated or reused; if something doesn’t match what you see in [the current code glossary](https://savingtoinvest.com/irs-tax-topic-error-codes-on-where-is-my-refund-wmr-and-irs2go/), trust the glossary. ### Should You Let AI File Your Actual Return? Reading a transcript is low-risk. Filing an entire return with AI is a different story, and experts are actively warning against it for the 2026-2027 season. Coverage from outlets like [McAfee’s security blog](https://www.mcafee.com/blogs/privacy-identity-protection/using-chatgpt-ai-file-taxes-data-privacy-risk/) and tax professionals both land on the same practical workflow: use AI to understand your situation and prepare questions, then use established tax software or a CPA to actually file. Never paste your SSN or bank routing numbers into any AI chat window. ## Looking Ahead: 2027 Filing Season I expect AI transcript-reading to get even more common next filing season, especially as more people get comfortable uploading redacted screenshots rather than trying to parse the codes themselves. What I’m watching for heading into 2027: whether any of the major AI providers roll out tax-specific modes with better privacy guarantees (temporary/non-retained chat sessions are already available in some tools, worth checking before you upload anything), and whether the IRS issues any formal guidance of its own on AI use with tax documents — so far it hasn’t, beyond the general warnings from the former commissioner referenced above. I’ll update this page if that changes. In the meantime, the redact-first approach above should hold up regardless of which AI tool you’re using. Frequently Asked Questions QIs it safe to upload my IRS tax transcript to ChatGPT or Claude? AIt's safer if you redact your SSN, full bank account/routing numbers, and address first. Treat any AI chatbot as a public form rather than a private document, since you lose control over stored data once it's uploaded. QCan AI tell me my exact refund amount from my transcript? AYes, in testing across roughly 10 real transcripts, AI tools correctly calculated the net refund amount by reading the transaction codes and their associated dollar amounts. QWhat should I ask AI to analyze my tax transcript? ASimple prompts work well, such as 'What is my refund?' or 'Help me understand my tax transcript.' You can follow up asking about specific codes, dates, or why your refund might be delayed. QShould I use AI to actually file my tax return? AExperts recommend against it for now. Use AI to understand your transcript or ask questions, but file through established tax software or a CPA, and never paste your SSN or bank details into an AI chat. QWhy does my AI-analyzed transcript show no Code 846 yet? ACode 846 (Refund Issued) only appears once the IRS has authorized your refund for payment. If you claimed the EITC or ACTC, the PATH Act blocks this until at least mid-February regardless of when you filed. **Categories:** Taxes and Retirement --- ### [IRS Tax Transcript Code 826 Credit Transferred Out - IRS Debt Offset and Smaller Refund](https://savingtoinvest.com/irs-tax-transcript-code-826-credit-transferred-out-irs-debt-offset-and-what-it-means-for-your-return-and-refund-processing/) **Published:** February 12, 2023 **Author:** Andy **Content:** ### Key Takeaways - Code 826 means the IRS applied part of your refund to your own existing IRS tax debt - different from Code 898, which covers non-IRS debts like child support. - The memo line next to 826 tells you the form and tax year the debt is tied to. - Your tax software's estimated refund won't reflect this offset unless you already knew about the debt when filing. - If your refund isn't enough to cover the debt, the IRS applies what it can and may repeat the offset in future years until it's paid off. - You can call the IRS to appeal the adjustment if you believe the underlying debt amount is wrong. [Transaction codes](https://savingtoinvest.com/irs-tax-topic-error-codes-on-where-is-my-refund-wmr-and-irs2go/) are used on IRS tax transcripts to show filers what has happened with their return processing, reasons for potential delays, when a refund will be paid, or why it’s delayed. Given ongoing challenges getting through to a [live IRS agent](https://savingtoinvest.com/how-can-i-actually-speak-to-a-real-person-or-agent-at-the-irs-phone-numbers-that-work/), many taxpayers turn to their free IRS transcript to see exactly what’s happening with their return and refund. ### Tax Transcript Code 826 Code 826 reflects that part of your refund was taken by the IRS to pay off an **existing or old IRS tax debt**. ![Code 826 on your transcript](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2023/02/image-9.png?resize=665%2C187&ssl=1)Code 826 on your transcriptThe memo line next to 826 (something like “1040 201812”) reflects that it was a tax debt tied to Form 1040 and the tax year (in that example, 2018) it applies toward. You’ll also receive an IRS [notice](https://savingtoinvest.com/should-i-be-worried-if-i-get-an-irs-notice-or-letter-will-it-affect-my-tax-return-processing-or-refund-payment/) detailing the debt your refund was applied to and your appeal options. Confirmation of this notice shows up as [code 971](https://savingtoinvest.com/refund-status-return-processing-has-been-delayed-beyond-the-normal-timeframe/) on your transcript. Note: you **won’t** see code 826 if your refund was adjusted under the Treasury Offset Program, which is specifically for non-IRS debt (that’s [code 898 instead](https://savingtoinvest.com/your-tax-refund-has-been-approved-for-direct-deposit-and-transcript-shows-846-with-payment-date-but-why-was-my-refund-adjusted/), and WMR shows a specific message for that scenario). Code 826 is only for debt owed directly to the IRS itself. You can see a full listing of [IRS transcript codes in this article](https://savingtoinvest.com/irs-tax-topic-error-codes-on-where-is-my-refund-wmr-and-irs2go/), but this article focuses specifically on code 826 (**TC 826**), which many filers see after the IRS completes processing on a regular or [amended return](https://savingtoinvest.com/wheres-my-amended-tax-return-and-when-will-i-get-my-refund/). **[Get the latest money, tax and stimulus news directly in your inbox](https://savingtoinvest.com/subscribe)** ### Why Was My Refund Lower Than Expected? The IRS generally adjusts your refund automatically for the overdue debt, and you’ll see this reflected on your transcript and in your payment. You can call the IRS for more detail and appeal the adjustment if you believe it’s incorrect. Also note that your [tax filing software](https://savingtoinvest.com/the-best-tax-software-and-free-filing-options-as-tax-filing-goes-primarily-online/) won’t know about this debt unless you tell it beforehand, so your *estimated* refund from your software will differ from your *actual* refund once the offset applies. This can also mean you lose your entire refund and remain on the hook for any [advance refund loan](https://savingtoinvest.com/are-advance-refund-payments-worth-it-and-how-much-you-can-get/) you took out based on your estimated refund. The IRS applies refund offsets to your oldest debt first. If your refund isn’t enough to cover it, you may see the same code again in subsequent years until the debt is paid off. Frequently Asked Questions QWhat's the difference between Code 826 and Code 898? ACode 826 is an offset for a debt you owe directly to the IRS. Code 898 is an offset for a non-IRS debt (child support, state debt, defaulted student loans) collected through the Treasury Offset Program. QCan I dispute a Code 826 offset? AYes - call the IRS to get details on the debt and appeal if you believe it's incorrect. You'll also receive a formal notice (Code 971) with instructions. QWhy didn't my tax software warn me about this offset? AYour filing software calculates your refund based only on the return itself - it has no visibility into outstanding IRS debt unless you manually account for it. QWill I keep seeing Code 826 every year? AIf your refund isn't large enough to fully cover the debt in one year, the IRS will keep applying available refunds to it in future years until it's paid off. **Categories:** Taxes and Retirement --- ### [Don't Panic - Understand IRS Reference Code 1242 and Get Your Refund on Track](https://savingtoinvest.com/does-irs-reference-code-1242-mean-i-am-getting-audited-will-my-refund-be-delayed/) **Published:** December 7, 2022 **Author:** Andy **Content:** ### Key Takeaways - Reference Number 1242 means your return is frozen and under review - not automatically an audit. - It's often paired with Tax Topic 151, which explains your appeal rights around any proposed adjustment. - Check your transcript for Code 420 specifically if you want to confirm whether an actual audit is underway. - Reviews tied to Code 1242 can take up to 120 days, longer if you file an appeal or the case is complex. - Respond promptly to any formal notice (like a CP05) - delayed responses are the biggest driver of extended wait times. After submitting your tax return, you may see a message referencing *code 1242* and *Tax Topic 151* when you check your IRS refund status. Naturally, this can cause stress and worry about what happens next. Here’s what it means, next steps, and the expected timeline. ![Reference Number 1242](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2024/02/image-17.png?resize=457%2C679&ssl=1)**[Get the latest money, tax and stimulus news directly in your inbox](https://savingtoinvest.com/subscribe)** ### What Does Reference Number 1242 Mean for My Refund? Reference number codes are how IRS systems classify informational or processing actions, much like [tax transcript codes](https://savingtoinvest.com/irs-tax-topic-error-codes-on-where-is-my-refund-wmr-and-irs2go/). According to the IRS manual, **Code 1242** means your return was received but is frozen (from any further action) and under review. This can feel alarming, but don’t panic — the IRS routinely reviews returns for errors and potential fraud, and most cases resolve without escalating further. You can contact IRS customer service to discuss this, though you’re unlikely to get much new information beyond what the reference code already tells you. There’s not much you can do at this stage beyond waiting for a formal notice — normally a [CP05 Letter](https://savingtoinvest.com/what-is-a-cp05-tax-notice-and-should-i-worry-when-i-get-this-letter-from-the-irs-around-my-tax-return-and-refund-payment/) verifying some of the information on your return. Your filing is under review and in queue for further action. The level of review (or audit) determines next steps and how long you’ll wait. ![IRS Reference 1242 (Return under review)](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2022/12/image-8.png?resize=499%2C633&ssl=1)IRS Reference 1242 (Return under review)### How Can I Get More Information? Review the [Tax Topic 151](https://savingtoinvest.com/what-does-irs-tax-topic-code-152-mean-for-my-refund-payment/) reference in your status message — this confirms the IRS’s next processing stage and your options to appeal any proposed adjustments or collection action. In some cases you may need to visit a [local taxpayer office](https://savingtoinvest.com/going-to-local-irs-office-and-talking-face-to-face-to-get-updates-on-my-tax-return-processing-and-refund-payment-status/) to verify your identity, or go through a more detailed [in-person audit](https://savingtoinvest.com/irs-audit-triggers-and-red-flags-for/). Check your [IRS tax transcript](https://savingtoinvest.com/irs-tax-transcript-reviews-for-adjusted-amended-returns-with-no-refund-or-offsets-delaying-payment/) for more detail and other codes — for example, [transcript code 420](https://savingtoinvest.com/tax-codes-420-and-424-on-my-irs-transcript-with-notice-cp75-is-my-return-under-audit-and-will-it-delay-my-refund-payment/) confirms you’re facing an actual audit, versus 1242 alone, which just means your return is under review. ### How Long Will It Take? Once you see this message, it can take **several weeks (up to 120 days)** for the IRS to respond and complete the review. If your case is complex and you file an appeal, the whole process could take months. During this time, the IRS may request more information via [formal notices](https://savingtoinvest.com/should-i-be-worried-if-i-get-an-irs-notice-or-letter-will-it-affect-my-tax-return-processing-or-refund-payment/) — respond to these promptly, since delays in your response directly extend the review timeline. Frequently Asked Questions QDoes Reference Code 1242 mean I'm being audited? ANot necessarily. It means your return is frozen for review. An actual audit shows up separately as transcript code 420 - check your transcript to confirm which applies to you. QHow long does a 1242 review usually take? AThe IRS generally cites up to 120 days, though complex cases or ones involving an appeal can take significantly longer. QWhat should I do if I see Code 1242 on WMR? AWait for a formal notice (often a CP05 letter) and respond promptly with any requested documentation. Calling the IRS before you've received that notice usually won't get you additional detail. QIs there anything I can do to speed up a 1242 review? ANot directly, but responding quickly and completely to any IRS notice is the single biggest factor in how fast your case moves. Persistent long delays may warrant contacting the Taxpayer Advocate Service. **Categories:** Taxes and Retirement --- ### [IRS Tax Transcript Code 841 - Refund Cancelled Due to Direct Deposit Rejection, Paper Check on The Way](https://savingtoinvest.com/irs-tax-transcript-code-841-refund-cancelled-due-to-direct-deposit-rejection-paper-check-on-the-way/) **Published:** April 14, 2022 **Author:** Andy **Content:** ### Key Takeaways - Code 841 means your direct deposit bounced (mismatched bank details) and the IRS is reissuing your refund as a paper check. - A second Code 846 line with a later date shows when the paper check was issued - expect up to 3 weeks for it to arrive by mail. - Double-check your routing and account numbers when filing to avoid this in the first place; direct deposit remains the fastest, most reliable method. - If your address on file is outdated, update it with the IRS immediately, since your check can only go to your address of record. - Calling the IRS about a bounced deposit usually just confirms your address is correct - there's no way to expedite the reissued check. The transcript excerpt below shows how the IRS handles refunds that are issued but cancelled, or unable to be paid, due to incorrect bank account details. I’ll walk through the key codes and dates involved. Seeing transaction **code 841** (refund cancelled) on your tax transcript can be alarming, especially if you’ve been [waiting for your refund](https://savingtoinvest.com/why-is-it-taking-so-long-to-get-my-tax-refund/) for a while and it hasn’t shown up in your bank account as expected. Banks generally reject IRS refund payments where the name and account numbers don’t match what they have on file. The funds return to the IRS, which then reissues the refund via paper check to your address on record. While this delays your payment, the good news is your refund was approved and will still be paid — just by check instead of direct deposit. **[Get the latest money, tax and stimulus news directly in your inbox](https://savingtoinvest.com/subscribe)** Also remember to try to get your refund via *direct deposit*, which the IRS recommends as the fastest and most secure method — double-check your routing and account numbers carefully before filing. ![IRS Tax Transcript Code 841, 846, 777, 776](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2022/04/image-3.png?w=800&ssl=1)Transcript Code for Rejected Refund Payments**Transcript Code (TC) 846** — This is the [general approval code](https://savingtoinvest.com/code-846-refund-issued-on-your-irs-tax-transcript-what-it-means-for-your-direct-deposit-or-paper-check-refund-payment/) meaning the IRS approved and issued your refund on the specified date (WMR status = Refund Sent). **Transcript Code (TC) 841** — Officially “Cancelled Refund Check Deposited.” It means the financial institution the IRS sent your refund to rejected the payment because the account details don’t match what’s on file at the bank. You’ll see negative reversal entries on the 841 line and related payments (776) reflecting the return of funds to the IRS. These get reissued in subsequent transaction lines on your transcript. **Transcript Code (TC) 971** — Means the IRS [sent you a notice](https://savingtoinvest.com/what-is-tax-code-tc-570-on-my-irs-transcript-and-will-it-delay-my-refund-account-freeze-or-additional-account-actions-pending/) (Letter 4870) confirming details on the rejection and what happens next — typically, a paper check. Once the IRS issues the paper check, you’ll see another **TC 846** line with a later date than the original. That later date is when the check was issued, and it can take **up to 3 weeks** to arrive by mail, based on IRS [processing cycles](https://savingtoinvest.com/irs-refund-cycle-code-and-dates-using-tax-transcript-to-get-master-file-information-for-your-direct-deposit-date/) (checks are normally mailed on Fridays). ### What Does TC 841 Mean and What Can I Do? There’s not much to do besides wait for your check. Monitor WMR or your transcript for date changes, but once you see the second 846 code, that typically signals the end of IRS processing on this issue. Calling an agent may give some peace of mind, but they’ll likely just confirm your address and tell you to wait for the check. ### What If My Home Address Is Wrong or the Check Was Mailed to the Wrong Address? The IRS can only mail your check to the official address on file from your last filing. Notify the IRS as soon as possible to update your address if it’s changed. If your check was already mailed to an old address and can’t be retrieved, you’ll need to contact the IRS to cancel that payment and reissue the check to your correct address — this will extend your delay further. Frequently Asked Questions QWhy did my direct deposit refund bounce? AAlmost always because the account name, routing number, or account number the IRS has doesn't match what your bank has on file - even a single incorrect digit can cause a rejection. QHow long does it take to get a paper check after Code 841? ATypically up to 3 weeks from the date on the second Code 846 line, since checks are generally mailed on Fridays as part of the IRS's weekly processing cycle. QCan I switch back to direct deposit after Code 841 appears? ANo - once your direct deposit is rejected and the IRS begins reissuing your refund, it will be sent as a paper check to your address of record. QWhat if my mailing address has changed since I filed? AUpdate your address with the IRS as soon as possible. If a check was already mailed to an old address, you'll need to contact the IRS directly to cancel and reissue it, which adds further delay. **Categories:** Taxes and Retirement --- ### [What Code 846 Refund Issued on Your IRS Tax Transcript Means For Your Direct Deposit Date](https://savingtoinvest.com/code-846-refund-issued-on-your-irs-tax-transcript-what-it-means-for-your-direct-deposit-or-paper-check-refund-payment/) **Published:** March 5, 2022 **Author:** Andy **Content:** ### Key Takeaways - Code 846 means your federal refund is approved and issued - check the date next to it, since it can appear more than once across tax years. - The 846 date is generally when the IRS releases payment; direct deposits often land 1-2 days before or after it, paper checks up to a week later. - Codes 898 (non-IRS debt offset) and 826 (IRS debt offset) explain why your 846 amount might be lower than expected. - If your direct deposit bounces, you'll see 846 followed by TC 841 - a paper check follows 4 to 6 weeks later. - Code 846 only covers your federal refund; state refunds run on a separate timeline. - Returns flagged for OBBBA-deduction or 1099-DA verification this season may take longer to reach the 846 stage than a standard return. [Transaction codes](https://savingtoinvest.com/irs-tax-topic-error-codes-on-where-is-my-refund-wmr-and-irs2go/) are used on IRS tax transcripts and WMR/IRS2Go to show current and historical information on your return processing, reasons for delays, when a refund will be paid, or why it was [lower than expected](https://savingtoinvest.com/why-is-my-tax-refund-so-low-compared-to-prior-years/). There are dozens of codes, but **Code 846, Refund Issued**, is the one you generally WANT to see on your account [tax transcript](https://savingtoinvest.com/getting-a-free-copy-of-your-irs-tax-return-information-form-4506t-irs-tax-transcript/) after your return has been through IRS system processing. It means the IRS is sending you the overpayment of your taxes — your refund — including any interest owed. Seeing this code confirms your refund is approved and getting paid. You’ll likely see several other transaction codes and dates before 846 shows up. I’ll walk through some of these below. ![Code 846 - Refund Issued on Tax Transcript](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2022/03/image-5.png?resize=581%2C267&ssl=1)Code 846 – Refund Issued on Tax Transcript**[Get the latest money, tax and stimulus news directly in your inbox](https://savingtoinvest.com/subscribe)** Covered in this Article: [Toggle](#) - [IRS Code 846: Does It Mean Your Refund Is Depositing Soon?](#IRS_Code_846_Does_It_Mean_Your_Refund_Is_Depositing_Soon) - [Transcript Codes 898 and 899 – Refund Applied to Non-IRS Debt](#Transcript_Codes_898_and_899_%E2%80%93_Refund_Applied_to_Non-IRS_Debt) - [Code 846 Date – Check the Correct Tax Year](#Code_846_Date_%E2%80%93_Check_the_Correct_Tax_Year) - [Is the Code 846 Date My Refund Direct Deposit Date?](#Is_the_Code_846_Date_My_Refund_Direct_Deposit_Date) - [Code 846 with a Future Date](#Code_846_with_a_Future_Date) - [Rejected or Reduced Refund Payments (TC 841 and 826)](#Rejected_or_Reduced_Refund_Payments_TC_841_and_826) - [When Will I See a 846 Date After Filing?](#When_Will_I_See_a_846_Date_After_Filing) - [Why Is My Refund (TC 846) Different From My Filing Amount (TC 150)?](#Why_Is_My_Refund_TC_846_Different_From_My_Filing_Amount_TC_150) - [Does Code 846 Affect My State Tax Refund?](#Does_Code_846_Affect_My_State_Tax_Refund) ### IRS Code 846: Does It Mean Your Refund Is Depositing Soon? The TC 846 code appears on your transcript once the IRS has processed your return and confirmed you’re eligible for a refund. You’ll see this as the **Refund Sent** status on [WMR or IRS2Go](https://savingtoinvest.com/wmr-and-irs2go-status-differences-return-received-accepted-or-under-review-and-refund-approved-versus-refund-sent/). Just check your net refund total at the top of your transcript or the figure shown in WMR/IRS2Go rather than trying to reconcile individual line items yourself. ### Transcript Codes 898 and 899 – Refund Applied to Non-IRS Debt You may see [TC 570](https://savingtoinvest.com/what-is-tax-code-tc-570-on-my-irs-transcript-and-will-it-delay-my-refund-account-freeze-or-additional-account-actions-pending/) (adjustment), [TC 898](https://savingtoinvest.com/irs-refund-adjustments-and-treasury-bfs-offsets-tax-topic-codes-203-598-or-898/) (BFS offset/non-IRS debt), or 971 ([notice issued](https://savingtoinvest.com/should-i-be-worried-if-i-get-an-irs-notice-or-letter-will-it-affect-my-tax-return-processing-or-refund-payment/)) before or after your 846 code, reflecting additional adjustments the IRS made before issuing your refund. **TC 898** means part of your refund was applied to non-IRS debt (another state or federal agency). If followed by **TC 899**, that’s a reversal of some or all of that amount, paid back to you as part of your refund. ![IRS code 846 followed by 898 and 899](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2022/04/image-7.png?resize=764%2C118&ssl=1)IRS code 846 followed by 898 and 899### Code 846 Date – Check the Correct Tax Year The 846 code can appear multiple times on your transcript, reflecting refunds issued across current and prior tax years. Always check the year on the 846 line to make sure it matches the current tax season — if you don’t see it for the current year, your return is likely still processing. ### Is the Code 846 Date My Refund Direct Deposit Date? Generally, the 846 date is when the IRS issues the refund payment or paper check. It can land **1 to 2 days before or after** that date via direct deposit (WMR status = Refund Sent). Paper checks can take up to a week longer to arrive. ### Code 846 with a Future Date You’ll often see a future date on your 846 line, especially if you filed early and are checking your transcript regularly. This date corresponds to your [refund cycle code](https://savingtoinvest.com/irs-refund-cycle-code-and-dates-using-tax-transcript-to-get-master-file-information-for-your-direct-deposit-date/) — it’s the expected disbursement date, and your money should hit on or before it. ![Code 846 Future Dated](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2023/02/image.png?resize=820%2C215&ssl=1)Code 846 Future Dated### Rejected or Reduced Refund Payments (TC 841 and 826) If your banking information is incorrect or your electronic payment is rejected, you’ll still see code 846 followed by [TC 841](https://savingtoinvest.com/irs-tax-transcript-code-841-refund-cancelled-due-to-direct-deposit-rejection-paper-check-on-the-way/), a reversal of the refund-issued code. A paper check gets mailed to your address on file 4 to 6 weeks after the IRS is notified of the bounced payment. If you see [code 826](https://savingtoinvest.com/irs-tax-transcript-code-826-credit-transferred-out-irs-debt-offset-and-what-it-means-for-your-return-and-refund-processing/) on your transcript, part of your refund was taken to pay off an existing or old IRS tax debt. ### When Will I See a 846 Date After Filing? The IRS generally processes 90% of refunds within 21 days, which is when you should also expect to see code 846. Returns that need special or manual handling — including the OBBBA and 1099-DA verification holds more filers are seeing this season — can take longer. ### Why Is My Refund (TC 846) Different From My Filing Amount (TC 150)? Your final refund amount, shown against code 846, is calculated from your original filing (TC 150) plus withholding (TC 806) and credits (766, 768), less any adjustments or offsets. The date on the 846 line is the actual date the refund was issued by the IRS — not the 4/15 default date shown on some other transcript lines, which is just a system placeholder. ![Why is my refund issued amount (TC 846) different to filing amount (TC 150)?](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2022/04/image-5.png?resize=735%2C1024&ssl=1)### Does Code 846 Affect My State Tax Refund? No — code 846 only reflects your **federal** refund. State refunds follow separate timelines and processes, generally paying out faster than the federal refund. Note that if the IRS needs further information or verification, you might see additional notices even after code 846 appears — this can happen due to a later audit or a rejected payment. Frequently Asked Questions QWill I get my refund on the exact date next to Code 846? AUsually within 1-2 days of that date for direct deposit. Paper checks can take up to a week longer to arrive by mail. QI see two Code 846 lines on my transcript - what does that mean? ACheck the tax year on each line. It's common to see 846 for a prior year and the current year both listed - make sure you're reading the one for the tax year you're actually waiting on. QWhy is my Code 846 amount lower than I expected? ACheck for Code 898 (non-IRS debt offset, like child support or a resumed student loan default) or Code 826 (IRS debt offset) elsewhere on your transcript - either explains a reduced 846 amount. QWhat happens if my refund is rejected after Code 846 appears? AYou'll see Code 841 (Cancelled Refund Check Deposited) reverse the 846 entry, followed by a reissued refund as a paper check, typically mailed within 4 to 6 weeks. QDoes Code 846 mean my state refund is also on the way? ANo. Code 846 is federal-only. Check your state's own refund tracker for your state tax refund status. **Categories:** Taxes and Retirement --- ### [IRS Transcript Codes 420 and 424 with Notice CP75 - Examination Request, Audit, or Tax Refund Delay](https://savingtoinvest.com/tax-codes-420-and-424-on-my-irs-transcript-with-notice-cp75-is-my-return-under-audit-and-will-it-delay-my-refund-payment/) **Published:** February 28, 2022 **Author:** Andy **Content:** ### Key Takeaways - TC 424 means your return was set aside for examination after an initial review; TC 420 means a fuller audit is underway. - The IRS notifies you by mail (CP75/CP75A) - it never initiates an audit by phone or email, so treat those as scams. - Newer credits (OBBBA overtime/tips deductions, 1099-DA digital asset reporting) are creating more of these flags, though most resolve at the lighter TC 424/570 stage. - If the review clears without issues, your refund proceeds (TC 846) or gets adjusted (TC 570/Tax Topic 203) rather than escalating further. - TC 421 confirms the audit is closed; refunds are typically issued within about 8 weeks after resolution. - Keep your supporting records for at least three years from your filing date - that's the documentation window tax law requires. [Tax codes](https://savingtoinvest.com/irs-tax-topic-error-codes-on-where-is-my-refund-wmr-and-irs2go/), topics, and notices are used across the IRS to explain what’s happening with a filer’s return, why processing is delayed or under further review, when a refund will be paid, or why it was [lower than expected](https://savingtoinvest.com/why-is-my-tax-refund-so-low-compared-to-prior-years/). There are dozens of tax codes and notices — many are purely informational, while others require action from the filer. **[Get the latest money, tax and stimulus news directly in your inbox](https://savingtoinvest.com/subscribe)** Covered in this Article: [Toggle](#) - [Overview of the IRS Examination/Audit Process](#Overview_of_the_IRS_ExaminationAudit_Process) - [Why Did I Get Audited?](#Why_Did_I_Get_Audited) - [What Happens After My Return Is Under Audit (TC 424)?](#What_Happens_After_My_Return_Is_Under_Audit_TC_424) - [How Will the IRS Audit Me and What Do I Need to Provide?](#How_Will_the_IRS_Audit_Me_and_What_Do_I_Need_to_Provide) - [What If You Cannot or Don’t Send Documents In?](#What_If_You_Cannot_or_Dont_Send_Documents_In) - [How Do I Know the Audit or Examination Is Done (TC 421)?](#How_Do_I_Know_the_Audit_or_Examination_Is_Done_TC_421) - [What Happens If I Amend My Return?](#What_Happens_If_I_Amend_My_Return) ### Overview of the IRS Examination/Audit Process Some of the more worrying transcript codes are **Tax Code 424 (TC 424)** and **Tax Code 420 (TC 420)**. You’ll generally see these on your [tax transcript](https://savingtoinvest.com/getting-a-free-copy-of-your-irs-tax-return-information-form-4506t-irs-tax-transcript/) once your return has been through initial system processing. WMR or IRS2Go will typically show a generic “your return is under processing” message when it’s under further IRS examination. You’ll usually see TC 424 before TC 420. Once your return is placed under audit, the IRS notifies you by mail via the **CP75, CP75A, or CP75D notices**, discussed below. While a review or audit likely delays your refund, an IRS audit isn’t a reason to panic if you haven’t intentionally provided incorrect information. You can normally resolve it by responding to the notice with supporting evidence, and the IRS adjusts your return/refund accordingly. The IRS will never initiate an audit by phone or email — be very careful of scammers using the threat of an audit to try to get your personal or financial information. Always respond to the IRS via mail or the official fax number listed in your notice. ### Why Did I Get Audited? It’s understandably unsettling to get an audit notice, but there’s no need to panic — the IRS bases audits on random selection tied to various [audit red flags](https://savingtoinvest.com/irs-audit-triggers-and-red-flags-for/), or because your return links to another filer or business entity under audit. Newer credits and deductions — including OBBBA’s no-tax-on-tips and no-tax-on-overtime deductions, and Form 1099-DA digital asset reporting — have added new categories where mismatches between what’s claimed and what’s reported by third parties (employers, brokers) get flagged for review. Most of these resolve at the lighter-touch TC 424/570 review stage rather than escalating to a full TC 420 audit. If review can’t establish eligibility for you or your claimed dependents (or someone else already claimed them), your return may get flagged for a formal audit (TC 420). ### What Happens After My Return Is Under Audit (TC 424)? Once selected, your return is sent to the IRS’s review/appeals department, and an auditor manually reviews the return and supporting documents (potentially including prior returns). At this point, your transcript will likely show **Tax Code 424**, Examination Request Indicator — your return has been set aside for examination after an initial review. This doesn’t necessarily mean a full audit (there are different [levels of audit](https://savingtoinvest.com/irs-audit-triggers-and-red-flags-for/)), but it will likely delay your refund. If the review finds no significant issues, it’s sent back for regular processing, including paying the refund (TC 846) or adjusting it for minor discrepancies ([TC 570](https://savingtoinvest.com/what-is-tax-code-tc-570-on-my-irs-transcript-and-will-it-delay-my-refund-account-freeze-or-additional-account-actions-pending/)) or an offset ([Tax Topic 203](https://savingtoinvest.com/irs-refund-adjustments-and-treasury-bfs-offsets-tax-topic-codes-203-598-or-898/)). If the audit agent finds discrepancies warranting further investigation, your return is forwarded for a more thorough audit (**TC 420**). You’ll be notified by mail via **CP75 or CP75A**, requesting a formal interview and/or additional documentation, and telling you exactly what the IRS is examining. Confirmation these notices were sent shows up on your transcript as **Tax Code 971**, notice issued. ![CP75 Notice for IRS Audit or Further Examination](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2022/02/image-32.png?resize=593%2C402&ssl=1)CP75 Notice for IRS Audit or Further Examination### How Will the IRS Audit Me and What Do I Need to Provide? The IRS can audit you by mail or in person. For mail audits (CP75), they’ll request supporting documentation — receipts, logs, and other records justifying claimed credits and deductions. Electronic records from your tax software may be acceptable in some cases. Tax law requires you to keep records used to prepare your return for at least three years from the filing date. If an in-person interview is needed (at an IRS office, your home, place of business, or accountant’s office), you’ll get a list of documents to have ready in advance. The IRS’s [Audit Techniques Guides](https://www.irs.gov/businesses/small-businesses-self-employed/audit-techniques-guides-atgs) give a sense of what to expect for different types of returns. ### What If You Cannot or Don’t Send Documents In? It’s a legal requirement to respond to IRS notices. If you don’t or can’t provide the requested evidence, the IRS sends an audit report with their proposed changes — which could mean garnishing your entire refund, or owing tax and penalties due to disallowed credits. Don’t ignore this or any other IRS notice. The IRS generally takes at least 30 days (often longer) to review documents you send, so expect a wait, and know that any potential refund will be delayed in the meantime. ### How Do I Know the Audit or Examination Is Done (TC 421)? The IRS sends another notice once satisfied you’ve proven eligibility for claimed items, or once you’ve agreed on adjusted amounts. They generally **issue your refund within 8 weeks**, subject to other debts or offsets. **Tax Code 421** on your transcript confirms the audit was closed. If your refund was adjusted as a result, you’ll also get a letter explaining the adjusted amounts and any tax owed or corrected refund. ### What Happens If I Amend My Return? An amended return is a separate submission — filing one doesn’t affect the audit selection process of the original return. Amended returns go through their own screening and can also be selected for audit. Frequently Asked Questions QWhat's the difference between TC 420 and TC 424? ATC 424 means your return was set aside for examination after an initial review - it doesn't guarantee a full audit. TC 420 means the IRS has moved forward with a more thorough audit. QWill the IRS call me if I'm being audited? ANo. The IRS only initiates audits by mail (CP75, CP75A, or CP75D notices). Any call or email claiming to be an audit notice is very likely a scam. QCan claiming the new OBBBA overtime or tips deduction trigger an audit? AIt can trigger a review if your claimed amount doesn't match what your employer reported, but most of these resolve at the TC 424/570 stage rather than escalating to a full TC 420 audit. QHow long does an IRS audit typically take? AIt varies by complexity, but once the audit is complete and you're cleared or have agreed to adjustments, the IRS generally issues any resulting refund within about 8 weeks. QDoes filing an amended return stop an audit? ANo. An amended return is processed separately and doesn't affect whether your original return remains under audit selection. **Categories:** Taxes and Retirement --- ### [IRS Tax Topic 152 vs. 151 - What These Codes Mean for Your Refund Status and Payment Delays](https://savingtoinvest.com/what-does-irs-tax-topic-code-152-mean-for-my-refund-payment/) **Published:** February 15, 2022 **Author:** Andy **Content:** ### Key Takeaways - Tax Topic 152 just means 'still processing' - no action is needed and it's not a bad sign on its own. - Tax Topic 151 means your return is under review, an audit, or an offset/adjustment is being applied to your refund. - Injured spouse claims, amended returns, and identity/income verification (including new OBBBA and 1099-DA cross-checks) are the most common reasons a return runs past the standard 21-day window. - Tax Topic 148 (fraud alert) is the one topic that requires you to actively work with the IRS to resolve. - Once your hold clears, expect your refund within about 10 to 14 days, confirmed by Code 846 on your transcript. The IRS processes tax returns based on a standard set of guidelines and instructions, codified into tax codes used across its internal systems to process returns, manage discrepancies, and eventually pay refunds. These codes are simplified into tax topics for filers, providing insight into what’s happening with a return, why there are processing delays, when a refund will be paid, or why it was [lower than expected](https://savingtoinvest.com/why-is-my-tax-refund-so-low-compared-to-prior-years/). One of the most common ones you’ll see after filing is **Tax Topic 152 (TC 152)**, generally shown on [WMR/IRS2Go](https://savingtoinvest.com/wmr-and-irs2go-status-differences-return-received-accepted-or-under-review-and-refund-approved-versus-refund-sent/) once your return has been received and is under processing (or delayed for some reason). Tax Topic 152 is more of a catch-all, informational message about your [refund processing timeline](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) and [potential delays](https://savingtoinvest.com/extended-tax-refund-delays-and-expected-irs-processing-schedule-for-returns-with-exceptions/). No additional steps are needed from you at this point. **[Get the latest money, tax and stimulus news directly in your inbox](https://savingtoinvest.com/subscribe)** ### Should I Worry If I See Tax Topic 152 on WMR? There’s no need to worry if you see this soon after filing. Many early filers see this message simply because the IRS is working through [PATH Act](https://savingtoinvest.com/using-your-irs-transcript-to-get-your-tax-return-and-refund-processing-status-and-key-dates/) holds and normal seasonal backlogs — not because of anything you did. Most returns process within 21 days, but Tax Topic 152 may be an early indication your return has been held for further review and could take longer. Returns can be held [longer than 21 days](https://savingtoinvest.com/no-tax-refund-after-21-days-tips-on-contacting-the-irs/) if you’re making an injured spouse claim, filing an amended return, or your return needs additional identity or income verification — a category that’s grown in recent seasons due to new OBBBA deductions (no tax on tips, no tax on overtime) and digital asset reporting via Form 1099-DA, both of which can pause a return for automated cross-checking against employer or broker data. Once processing resumes or an issue is identified, WMR will update to one of several other [potential tax topics](https://savingtoinvest.com/irs-tax-topic-error-codes-on-where-is-my-refund-wmr-and-irs2go/). [![Tax Topic 152 IRS2Go Refund Information](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2022/02/image-20.png?resize=820%2C865&ssl=1)](https://savingtoinvest.com/refund-status-return-processing-has-been-delayed-beyond-the-normal-timeframe/)Tax Topic 152 IRS2Go Refund InformationOnce processing resumes, you should generally see your refund within **10 to 14 days**. [Code 846](https://savingtoinvest.com/code-846-refund-issued-on-your-irs-tax-transcript-what-it-means-for-your-direct-deposit-or-paper-check-refund-payment/) on your transcript confirms payment, and WMR status moves to Refund Sent. ### What Happens After Tax Topic 152 (Topic 151)? If the tax topic changes to **151**, it means your return is under a potential audit or held for further examination. Audits happen at different levels, and for most filers, it just means an IRS agent checks the return manually and sends a letter with discrepancies, adjustments, or a payment request. You may also see codes [420 or 424](https://savingtoinvest.com/tax-codes-420-and-424-on-my-irs-transcript-with-notice-cp75-is-my-return-under-audit-and-will-it-delay-my-refund-payment/) reflected on your transcript at this stage. The topic you really don’t want to see is **Tax Topic 148**, which flags an IRS fraud alert followed by an identity or fraudulent-return review. You’ll need to work directly with the IRS to resolve this, and they’ll send a formal notice with details. You can read more on [Tax Topic 152 on the IRS website](https://www.irs.gov/taxtopics/tc152). Frequently Asked Questions QHow long does Tax Topic 152 usually last? AFor most filers, it clears within the standard 21-day e-file window. If it's lasted longer than that, your return likely needs additional review - check your transcript for codes like 570 or 810 for more detail. QDoes Tax Topic 152 mean I'm being audited? ANo. Tax Topic 152 is a generic processing message. An actual audit shows up as Tax Topic 151 combined with transcript codes 420 or 424. QWhy did my Tax Topic 152 disappear with no refund date? AThis usually means your return moved into standard processing and the generic message was replaced with a more specific status - check WMR daily and your transcript for updated codes. QIs Tax Topic 151 always bad news? ANot necessarily. It often just means an offset is being applied (like a past debt), and you'll still get whatever remains of your refund. It only becomes more serious if paired with an audit code (420/424) or a fraud flag (Topic 148). **Categories:** Taxes and Retirement --- ### [IRS Codes 570 and 971 - Tax Refund Delayed or Reduced in 2026-2027](https://savingtoinvest.com/what-is-tax-code-tc-570-on-my-irs-transcript-and-will-it-delay-my-refund-account-freeze-or-additional-account-actions-pending/) **Published:** February 20, 2022 **Author:** Andy **Content:** ### Key Takeaways - TC 570 freezes your refund for additional review - it's a hold, not an audit, and often resolves automatically. - New for 2026-2027: OBBBA's 'No Tax on Overtime'/'No Tax on Tips' deductions and Form 1099-DA digital asset cost-basis mismatches are now leading causes of 570/971 holds. - TC 971 right after 570 with the same date usually means an automatic resolution - expect payment in 3 to 6 weeks. - TC 570 then 971 with different dates, and no refund change, means the hold may take longer and needs your response to any IRS notice. - Watch for 571 (freeze resolved) or 572 (resolved additional account action) as the signal your hold is clearing. - This season's OBBBA/1099-DA-driven holds are generally resolving in 2 to 8 weeks rather than the older 45-to-120-day range. Transaction codes and tax topics are used across IRS refund status applications — WMR or IRS2Go — and account transcripts, to show filers what’s happening with their tax return, why it’s delayed, when a refund will be paid, or why it was [lower than expected](https://savingtoinvest.com/why-is-my-tax-refund-so-low-compared-to-prior-years/). You’ll generally see **Transaction Code 570 (TC 570)** on your [tax transcript](https://savingtoinvest.com/getting-a-free-copy-of-your-irs-tax-return-information-form-4506t-irs-tax-transcript/) once your return has been through initial system processing. This code means additional review — often requiring manual intervention — is being done, and your return processing (and refund payment) is frozen until it’s resolved. It generally corresponds with the Tax Topic **152** WMR/IRS2Go message that your [return is under processing or review](https://savingtoinvest.com/what-does-irs-tax-topic-code-152-mean-for-my-refund-payment/). It can take several days or weeks for TC 570 issues to resolve, given the range of things this code covers. I’ve listed the most common causes below, including two new ones specific to this filing season. **[Get the latest money, tax and stimulus news directly in your inbox](https://savingtoinvest.com/subscribe)** Covered in this Article: [Toggle](#) - [What Does Code 570 on Your Transcript Mean?](#What_Does_Code_570_on_Your_Transcript_Mean) - [Can I Resolve TC 570 via TC 971 IRS Notice?](#Can_I_Resolve_TC_570_via_TC_971_IRS_Notice) - [What Do the Amounts Against Code 570 Mean?](#What_Do_the_Amounts_Against_Code_570_Mean) - [What Do the Dates Next to 570 and 971 Mean?](#What_Do_the_Dates_Next_to_570_and_971_Mean) - [When Will I Know My 570 Issue Is Resolved (Codes 571, 572 and 846)?](#When_Will_I_Know_My_570_Issue_Is_Resolved_Codes_571_572_and_846) - [How Long Will This Delay My Refund?](#How_Long_Will_This_Delay_My_Refund) - [Help! What If My IRS Adjustment Is Wrong?](#Help_What_If_My_IRS_Adjustment_Is_Wrong) - [Video: Understanding Code 570 on Your IRS Tax Transcript](#Video_Understanding_Code_570_on_Your_IRS_Tax_Transcript) ### What Does Code 570 on Your Transcript Mean? Per IRS guidelines, TC 570 means your return is on hold due to a **pending additional liability review**. No further processing or refund payment happens until this hold lifts. ![TC 570 on your IRS Account Transcript](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2022/02/image-26.png?resize=799%2C685&ssl=1)TC 570 on your IRS Account TranscriptCode 570 can be triggered by a mismatch with employer-reported wage income, injured spouse claims, [ID verification](https://savingtoinvest.com/i-filed-my-tax-return-it-was-accepted-yet-i-still-havent-seen-any-sign-of-my-refund-irs-identity-review-and-validation-the-likely-reason/), or reconciling tax credits (EITC, RRC, CTC) claimed versus what the IRS has on record. **New for the 2026-2027 filing season, two additional triggers are showing up frequently:** - **OBBBA “No Tax on Overtime” and “No Tax on Tips” deductions.** If you claimed either new deduction, the IRS’s automated systems may pause your return to verify your employer reported the corresponding overtime hours or tip income correctly. A mismatch between what you claimed and what your employer reported is a common cause of a 570 hold this season. - **Form 1099-DA cost-basis mismatches.** 2026 is the first filing season digital asset brokers were required to issue Form 1099-DA. If you sold Bitcoin, Ethereum, or other digital assets in 2025 and your reported cost basis differs from what the broker reported to the IRS — even slightly — your return gets flagged. This “basis gap” is a leading cause of the 570/971 combination this year. Because IRS systems can’t automatically reconcile these mismatches, they get sent for manual review and verification, which is what generates TC 570. ![Codes 971 and TC 570 on your IRS Tax Account Transcript](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2022/02/image-42.png?resize=820%2C521&ssl=1)You’ll normally see code 971 right after 570 — **TC 971** is the generic code for an IRS [notice or letter](https://savingtoinvest.com/should-i-be-worried-if-i-get-an-irs-notice-or-letter-will-it-affect-my-tax-return-processing-or-refund-payment/) that explains the issue or advises of further delays (e.g. an [additional 60-day review](https://savingtoinvest.com/i-got-a-need-an-additional-60-day-review-letter-from-the-irs/)). ### Can I Resolve TC 570 via TC 971 IRS Notice? Following additional review, the IRS can often resolve TC 570 automatically — no [further action needed from you](https://savingtoinvest.com/irs-tax-transcript-reviews-for-adjusted-amended-returns-with-no-refund-or-offsets-delaying-payment/) — and your return is released for further processing, including refund payment. An internal or automatic resolution generally only delays your refund by one to three weeks. You’ll get a notice of the resolution and a chance to appeal the adjustment, but refund processing and payment continue in the interim. If **more information is needed**, the IRS sends a letter (also reflected as TC 971) requesting additional documents or details — for OBBBA-related holds, this often means providing pay stubs or employer confirmation of overtime/tip amounts; for 1099-DA mismatches, it may mean documentation of your cost basis for the digital assets sold. ### What Do the Amounts Against Code 570 Mean? It may show a **$0 amount** against the 570 line if the IRS is still reviewing your return and/or the issue is non-monetary. The amount may change to a liability (positive number) if the IRS adjusts your return. ### What Do the Dates Next to 570 and 971 Mean? Check the dates as well as the amounts, since you may see transaction lines spanning several tax years — make sure you’re looking at the current year’s lines. ![What do dates on 570 IRS transcripts mean?](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2022/04/image-11.png?resize=639%2C131&ssl=1)What do dates on 570 IRS transcripts mean?If you see TC 971 then TC 570 with the **same date**, it generally means the IRS auto-adjusted your refund and sent a resolution notice — expect payment within 3 to 6 weeks, assuming no other issues, once you see lines 846 and 571 or 572. If you see TC 570 then TC 971 with **different dates** and your refund amount hasn’t changed, it means a hold that may take longer, since the IRS is still actively processing. Follow the instructions in your IRS notice and [respond promptly](https://savingtoinvest.com/how-long-do-i-have-to-wait-after-an-irs-notice-to-get-my-tax-refund/) to any requests for more information. ### When Will I Know My 570 Issue Is Resolved (Codes 571, 572 and 846)? You’ll know TC 570 is resolved when it progresses to **571** (freeze resolved) or **572** (Resolved Additional Account Action), or your liability balance goes to $0. A final 971 notice confirms the resolution. If no further issues are found, a refund ([TC 846](https://savingtoinvest.com/code-846-refund-issued-on-your-irs-tax-transcript-what-it-means-for-your-direct-deposit-or-paper-check-refund-payment/)) is then released for payment. ![Tax Code 570 to TC 971 to TC 571 to TC 846](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2022/02/image-25.png?resize=583%2C162&ssl=1)Tax Code 570 to TC 971 to TC 571 to TC 846### How Long Will This Delay My Refund? The IRS generally cites 45 to 60 days for additional reviews, though this has varied by season depending on processing backlogs. For the 2026-2027 season, OBBBA-related and 1099-DA-related holds are generally resolving faster — often within 2 to 8 weeks — since these are increasingly common, well-understood patterns the IRS has built automated cross-checks for. You may also see extended delays and code 570/971 if your refund is held for [PATH Act](https://savingtoinvest.com/tax-refund-payment-delays-likely-according-to-the-irs/) reasons if you claimed the EITC or ACTC. ### Help! What If My IRS Adjustment Is Wrong? You can appeal any IRS adjustment, but you’ll still get the adjusted refund ahead of the appeal being resolved. If you win, the IRS pays the additional amount later. You can also contact the [Taxpayer Advocate Service (TAS)](https://savingtoinvest.com/contact-a-tax-advocate-to-help-get-your-refund-released-from-the-irs/) for help or hardship consideration, though TAS prioritizes genuine hardship cases (imminent eviction, medical needs) given demand. ### Video: Understanding Code 570 on Your IRS Tax Transcript Frequently Asked Questions QWhy is Code 570 showing up more this year? ATwo new triggers are behind a lot of this season's 570 holds: OBBBA's overtime/tips deductions (the IRS verifies claimed amounts against employer-reported data) and Form 1099-DA digital asset reporting (cost-basis mismatches between what you reported and what your broker reported to the IRS). QDoes Code 570 mean I did something wrong? ANot necessarily. It's the IRS flagging a mismatch or item that needs manual reconciliation - it's common with new deductions and reporting requirements like OBBBA and 1099-DA, and doesn't imply wrongdoing. QHow long does a 570 hold typically last in 2026-2027? AMost cases resolve in about 2 to 8 weeks, though complex cases or those requiring documentation (like proving cost basis on a crypto sale) can take longer. QWhat should I do if I get a 570 hold from a 1099-DA mismatch? AGather your own cost-basis records for any digital assets sold and be ready to respond to any IRS notice (TC 971) requesting documentation. Keeping trade confirmations and wallet records is the best way to resolve this quickly. QWill TC 570 show up if I claimed the overtime or tips deduction incorrectly? AIt can, if the amount you claimed doesn't match what your employer reported. Double-check your final pay stub or W-2 against what you entered on your return before filing to reduce this risk. **Categories:** Taxes and Retirement --- ### [Understanding Tax Topic 203 and Code 898 - Refund Reduced For Past Due Debt Obligations](https://savingtoinvest.com/irs-refund-adjustments-and-treasury-bfs-offsets-tax-topic-codes-203-598-or-898/) **Published:** February 18, 2022 **Author:** Andy **Content:** ### Key Takeaways - Tax Topic 203 and Code 898 mean part (or all) of your refund was offset for a past-due, non-IRS debt via the Treasury Offset Program. - Defaulted federal student loan offsets resumed in 2025 after a multi-year pandemic-era pause - this is now an active offset category again for 2026-2027 refunds. - Your refund can also be offset for past-due child support, state tax debts, and overpaid unemployment compensation. - The BFS (not the IRS) manages these debts - call 1-800-304-3107 for automated details, or contact the debtor agency directly to discuss repayment or disputes. - If you're not responsible for your spouse's debt, Form 8379 (Injured Spouse Allocation) can get your portion of the refund released. - A successful appeal shows up as Code 766 (TOP Offset Reversal) and results in an additional refund payment. Many tax filers feel a rush of relief when they see the refund approved and sent status on WMR/IRS2Go, or [code 846](https://savingtoinvest.com/code-846-refund-issued-on-your-irs-tax-transcript-what-it-means-for-your-direct-deposit-or-paper-check-refund-payment/) (refund issued) on their tax transcript. That relief can turn into frustration when an additional status message about a past-due obligation shows their estimated [refund on the transcript](https://savingtoinvest.com/using-your-irs-transcript-to-get-your-tax-return-and-refund-processing-status-and-key-dates/) — or the actual deposit — is lower than expected. One of the main reasons: your refund was offset by the IRS under the Treasury Offset Program (TOP), for things like past-due child support or other delinquent debts. This program is run by the Treasury’s Bureau of the Fiscal Service (BFS), which collects past-due debts owed to state and federal agencies. ![BFS refund offset](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2024/02/image-19.png?resize=559%2C615&ssl=1)**[Get the latest money, tax and stimulus news directly in your inbox](https://savingtoinvest.com/subscribe)** Covered in this Article: [Toggle](#) - [Which Debts Can Be Collected This Way?](#Which_Debts_Can_Be_Collected_This_Way) - [How Do I Know Why and By How Much My Refund Was Reduced?](#How_Do_I_Know_Why_and_By_How_Much_My_Refund_Was_Reduced) - [Who Can I Contact to Get More Information?](#Who_Can_I_Contact_to_Get_More_Information) - [Tax Topic 203 & Form 8379 Injured Spouse Allocation](#Tax_Topic_203_Form_8379_Injured_Spouse_Allocation) - [Reversing the Offset (766 – IRS TOP Offset Reversal)](#Reversing_the_Offset_766_%E2%80%93_IRS_TOP_Offset_Reversal) ### Which Debts Can Be Collected This Way? There are several delinquent payment types that can be collected via this program: over-due tax debts from previous years, child support payments, overpaid unemployment compensation, and [defaulted federal student loan debt](https://savingtoinvest.com/can-my-delinquent-student-loan-debt-be-offset-against-my-irs-tax-refund/). **Important update for 2026-2027 filers:** the pandemic-era pause on offsetting refunds for defaulted federal student loans ended in 2025. The Treasury Offset Program resumed collections on defaulted federal student loan debt during the 2025-2026 collections cycle, meaning millions of borrowers who hadn’t seen a student-loan-related refund offset in several years are seeing it again. If your refund came back lower than expected and you have federal student loans in default, this is one of the first things to check. After a notice period, past-due debts can legally be offset against your IRS tax refund (and in some cases against Social Security benefits). On WMR or IRS2Go, this shows up as **Tax Topic 203**, along with your adjusted refund amount and date (assuming no other holds, like [code 570](https://savingtoinvest.com/what-is-tax-code-tc-570-on-my-irs-transcript-and-will-it-delay-my-refund-account-freeze-or-additional-account-actions-pending/)). On your [tax transcript](https://savingtoinvest.com/getting-a-free-copy-of-your-irs-tax-return-information-form-4506t-irs-tax-transcript/), the amount is reflected against transaction code (TC) **898** — listed as a refund applied to non-IRS debt. ![898 - IRS Refund Offset Adjustment](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2022/02/image-23.png?resize=432%2C211&ssl=1)898 – IRS Refund Offset Adjustment### How Do I Know Why and By How Much My Refund Was Reduced? The Bureau of the Fiscal Service ([BFS](https://fiscal.treasury.gov/top/)) sends an **offset notice** detailing the amount and the agency you owe the debt to. You should have already received a letter from the debtor agency, generally at least 60 days before the debt was sent to the IRS, outlining what you owe and your payment options, including payment plans. That letter also explains how to appeal before your refund is collected. If you changed your address and missed this letter, that doesn’t undo the offset — it’s still legally valid. ### Who Can I Contact to Get More Information? Your delinquent debt notice will have contact details, but you can also call BFS/TOP at **1-800-304-3107** (toll-free) for an automated message with the amount, date, and creditor agency. To speak with a person about your actual debt (repayment plan, dispute, removal from TOP), you need to contact the agency you owe directly — the IRS doesn’t hold your debt records and can’t resolve them. ### Tax Topic 203 & Form 8379 Injured Spouse Allocation [![Tax Topic 203 and Form 8379](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2022/02/image-24.png?resize=486%2C206&ssl=1)](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2022/02/image-24.png?ssl=1)Spouses filing jointly who believe they’re not responsible for their partner’s debt can file [Form 8379, Injured Spouse Allocation](https://www.irs.gov/forms-pubs/about-form-8379), to request their portion of the refund back. ### Reversing the Offset (766 – IRS TOP Offset Reversal) If you successfully appeal the offset or file Form 8379, you’ll see this reflected as **code 766** (removed refund applied to non-IRS debt) on your transcript — a credit that results in an additional refund check or direct deposit. Frequently Asked Questions QAre student loan refund offsets happening again in 2026-2027? AYes. The pandemic-era collections pause on defaulted federal student loans ended in 2025, and the Treasury Offset Program resumed applying refund offsets to defaulted federal student loan debt. If your loans are in default, expect this to be a live risk again this filing season. QCan the IRS explain why my refund was offset? ANot fully - the IRS can only confirm whether the amount on your offset notice matches your original return. For details on the actual debt, you need to contact the agency you owe (child support agency, state tax authority, or student loan servicer). QWhat's the difference between Code 898 and Code 826? ACode 898 reflects a non-IRS debt offset handled by the Treasury Offset Program (BFS). Code 826 reflects a refund applied to an existing IRS tax debt, handled directly by the IRS - see the difference explained further in this related article on Code 826. QCan I get my offset refund back? AYes, if you successfully appeal through the creditor agency or file Form 8379 (Injured Spouse Allocation) if you're not responsible for the debt. A successful reversal shows up as Code 766 on your transcript. QHow long before a debt gets sent to the Treasury Offset Program? AFederal law generally requires agencies to refer debts once they're 120 days past due, and you should receive advance notice from the creditor agency before that happens. **Categories:** Taxes and Retirement --- ### [Checking Your IRS Tax Refund Status on WMR or IRS2Go For Direct Deposit Payment Date](https://savingtoinvest.com/wmr-and-irs2go-status-differences-return-received-accepted-or-under-review-and-refund-approved-versus-refund-sent/) **Published:** February 1, 2016 **Author:** Andy **Content:** ### Key Takeaways - WMR/IRS2Go show three statuses -- Return Received, Refund Approved, and Refund Sent -- and each one tells you something different about how much longer you'll wait. - The tracker updates once a day, usually overnight, so checking multiple times a day won't reveal anything new. - Disappearing status bars or an 'N/A' on your transcript usually mean your return needs further review, not that something's wrong. - Refund Approved means a payment date has been set; Refund Sent means the money is on its way, typically arriving in 2-3 business days for direct deposit. - Reduced refunds usually stem from a Treasury offset for unpaid debt, or a Code 570 hold -- the IRS will mail a letter explaining exactly why. - Your IRS tax transcript often shows more detail than WMR, especially transaction codes like 570, 846, and 203. - Don't call the IRS before 21 days (e-file) or 6 weeks (paper) -- phone reps can't access more information before then. With tax season underway, lots of taxpayers want an update on their refund processing status on the IRS’ Where’s My Refund (WMR) website or the IRS2Go mobile app. These tools give you three key pieces of information: confirmation the IRS received your return, approval of your refund, and the date it was issued. Despite IRS upgrades to WMR/IRS2Go over the years to provide clearer messaging, there’s still a lot of confusion as people anxiously wait for their refunds. It’s not always obvious how the IRS is processing returns or when filers can expect their refund to hit their bank account or debit card. If you search tax forums, one of the most common questions is about the differences between the three WMR/IRS2Go statuses: **Return Received**, **Refund Approved**, and **Refund Sent**. The tracker is normally updated once daily (around 3 AM EST), so there’s no need to constantly refresh it. ![Checking WMR and IRS2Go Refund Status Updates](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2022/02/image-17.png?resize=377%2C81&ssl=1)You can start checking WMR or IRS2Go **24 hours** after the IRS receives your e-filed return, or **2 to 3 weeks** after you mail a paper return. If you check immediately after filing, you may not see any record of your return and get a [not processed](https://savingtoinvest.com/your-tax-return-is-not-processed/) message. Give it a day or two and don’t panic — you or your preparer will also get an email confirmation from the IRS if you e-filed. As the IRS processes your return, it moves through three stages and gives you information (via [IRS topic or transaction codes](https://savingtoinvest.com/irs-tax-topic-error-codes-on-where-is-my-refund-wmr-and-irs2go/)) on your refund status, and whether you need to take action like providing more information or [calling the IRS](https://savingtoinvest.com/no-tax-refund-after-21-days-tips-on-contacting-the-irs/). For the complete list of reasons refunds get delayed, see my [full guide to tax refund delays](https://savingtoinvest.com/why-is-it-taking-so-long-to-get-my-tax-refund/). Here are more details on each status and what each one means. Covered in this Article: [Toggle](#) - [Refund Status Bar 1: Return Received](#Refund_Status_Bar_1_Return_Received) - [WMR/IRS2Go Status Bar 2: Refund Approved](#WMRIRS2Go_Status_Bar_2_Refund_Approved) - [WMR or IRS2Go Status Bar 3: Refund Sent](#WMR_or_IRS2Go_Status_Bar_3_Refund_Sent) - [When Do IRS2Go/WMR and Transcript Get Updated?](#When_Do_IRS2GoWMR_and_Transcript_Get_Updated) - [How Do I Check My Refund Status?](#How_Do_I_Check_My_Refund_Status) - [Where’s My Refund Tool System Updates](#Wheres_My_Refund_Tool_System_Updates) - [Help! My WMR Status Bars Have Disappeared](#Help_My_WMR_Status_Bars_Have_Disappeared) - [How Far Back Does WMR or IRS2Go Go?](#How_Far_Back_Does_WMR_or_IRS2Go_Go) - [Why Is My Refund Status Showing a Reduced Refund Message (Code 203 or 570)?](#Why_Is_My_Refund_Status_Showing_a_Reduced_Refund_Message_Code_203_or_570) - [Using Your IRS Transcript and Cycle Code for More Detail](#Using_Your_IRS_Transcript_and_Cycle_Code_for_More_Detail) - [Reader Feedback on IRS Delays (With Some Help)](#Reader_Feedback_on_IRS_Delays_With_Some_Help) - [Helpful Videos on IRS Refund Processing Delays](#Helpful_Videos_on_IRS_Refund_Processing_Delays) - [Useful IRS Numbers for Refund Questions](#Useful_IRS_Numbers_for_Refund_Questions) ### Refund Status Bar 1: Return Received This status means your tax return has been received by the IRS (from your tax software or mailed paper return) and has passed initial screens covering basic fraud checks, SSN verification, and obvious red flags. ![IRS2Go WMR Status Graphic - Return Received](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2024/02/image-4.png?resize=254%2C300&ssl=1)Your return stays in this status while the IRS processes it in more detail to confirm compliance and the accuracy of the refund amount. [Tax Topic 152](https://savingtoinvest.com/what-does-irs-tax-topic-code-152-mean-for-my-refund-payment/) is just a general notification confirming this. Your refund can sit in this status for a while if your return is complex or the IRS needs more information. The IRS says it processes most returns within 21 days if the return isn’t flagged for further review. There’s **no need to follow up** with the IRS if WMR shows Return Received. If this status is showing, the IRS is processing your return, and calls or letters won’t speed anything up. Once the IRS acknowledges receipt, refund status information is typically available within: - 24 hours after receipt of a taxpayer’s e-filed current-year return. - Three to four days after receipt of an e-filed return for either of the two prior tax years (WMR now supports multi-year lookups). - Four weeks after mailing a paper return. If your return takes [longer than normal to process](https://savingtoinvest.com/refund-status-return-processing-has-been-delayed-beyond-the-normal-timeframe/) due to additional IRS checks, your status message will change, and you’ll need to wait for the IRS to update you or respond to any [notices](https://savingtoinvest.com/i-got-a-need-an-additional-60-day-review-letter-from-the-irs/) requesting more information. ![IRS Refund Processing Delays](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2022/02/image-16.png?resize=300%2C225&ssl=1)IRS Refund Processing Delays (after received)### WMR/IRS2Go Status Bar 2: Refund Approved This status appears once your return checks out and your refund is approved for payout by direct deposit or check. A personalized refund date is provided, and the app status changes to Refund Approved. If you elected direct deposit, you’ll see a date by which the money should hit your account. ![WMR and IRS2Go - Refund Approved Status Image](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2024/02/image-5.png?resize=375%2C341&ssl=1)While the IRS promises to process most returns in under 21 days, it can take longer if complications come up. This is what frustrates most taxpayers, since the IRS provides limited information when errors are spotted. While some information shows up on WMR and IRS2Go, the IRS will generally mail you for further details. You can also check your [IRS tax transcript](https://savingtoinvest.com/using-your-irs-transcript-to-get-your-tax-return-and-refund-processing-status-and-key-dates/) for more. This could add days, weeks, or even months if a lot of additional information is needed. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get updates when new refund status information becomes available.* ### WMR or IRS2Go Status Bar 3: Refund Sent As the name implies, this status means the IRS has sent your refund to your nominated bank account. It gives you a specific date on your [refund schedule](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) for when it was sent. Direct deposit payments are generally processed within 2 to 3 business days — meaning the money should be available for withdrawal within that window. ![IRS2Go Refund Status - Refund Sent](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2024/02/image-6.png?resize=474%2C447&ssl=1)You should only contact your bank or financial institution if you haven’t received your refund payment 2 to 3 days after the IRS refund-sent date. Note that you may see a message below the refund/deposit details saying your refund was [reduced or offset](https://savingtoinvest.com/your-tax-refund-has-been-approved-for-direct-deposit-and-transcript-shows-846-with-payment-date-but-why-was-my-refund-adjusted/) (more on this below). You’ll get a [tax code notice](https://savingtoinvest.com/irs-tax-topic-error-codes-on-where-is-my-refund-wmr-and-irs2go/) explaining why and your options to appeal, but the IRS will still send whatever amount it has approved. If you requested a paper check, it’s been mailed and could take 10+ days to arrive by mail — longer if your mailing address is outside the US. ### When Do IRS2Go/WMR and Transcript Get Updated? WMR and IRS2Go can update any day of the week, but major updates on daily accounts are usually **Wednesday**, and major updates on weekly accounts are usually **Saturday**. You can check whether your IRS account is [daily or weekly in this article](https://savingtoinvest.com/irs-refund-cycle-code-and-dates-using-tax-transcript-to-get-master-file-information-for-your-direct-deposit-date/). This generally shows which batch or cycle your return is being processed in on the IRS master file (IMF). The IRS still runs most of its processing in “batches” or “cycles,” so knowing which one you’re in can help you anticipate when updates will happen. WMR and IRS2Go are typically down for **scheduled system maintenance** on Sunday and Monday nights. During peak tax season, it’s not uncommon to see longer outages. When too many users are trying to access the refund trackers at once, the IRS can restrict access, and you may see a message that the system can’t verify your identity, or missing status bars (more on that below). IRS **batch processing** generally runs 12 AM to 3 AM (EST), and refund **direct deposit processing** runs 3:30 AM to 6:00 AM (EST) most nights except Sundays. Similar to WMR and IRS2Go, your [free IRS tax transcript](https://savingtoinvest.com/getting-a-free-copy-of-your-irs-tax-return-information-form-4506t-irs-tax-transcript/) can update any day of the week, though major updates on daily accounts are generally on Tuesdays, and mass updates on weekly accounts are usually Fridays. This lines up with the cycle codes as [discussed in this video](https://youtu.be/BHKh8BkwAJo). ![When do IRS2Go/WMR and Transcript get updated](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2022/02/image-18.png?resize=217%2C300&ssl=1)### How Do I Check My Refund Status? Once your status is available, go to the [IRS refund status site](https://www.irs.gov/refunds) to check your refund status and payment date. You’ll need your SSN, filing status, and the exact amount of your expected refund to verify your identity and access your status. ![Where is my IRS Federal Refund](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2023/02/image-27.png?resize=777%2C694&ssl=1)Where is my IRS Federal RefundIf you can’t use the online tool, you can [call the IRS directly](https://savingtoinvest.com/how-can-i-actually-speak-to-a-real-person-or-agent-at-the-irs-phone-numbers-that-work/). ### Where’s My Refund Tool System Updates One of the biggest complaints about the IRS’ “Where’s My Refund” tool was the limited or generalized information it provided, particularly for held-up refunds — which caused many taxpayers to [desperately call the IRS](https://savingtoinvest.com/how-can-i-actually-speak-to-a-real-person-or-agent-at-the-irs-phone-numbers-that-work/) for updates. Since 2024, thanks to additional funding under the Inflation Reduction Act, the WMR tool has added several enhancements, including more detailed refund status messages and delay reasons in plain language rather than just system codes. Though ongoing IRS staffing and budget constraints in 2026 mean these improvements have rolled out unevenly across the system. With the improvements, taxpayers get clearer updates, including whether the IRS needs a response to a letter for additional information — which should reduce the number of people who feel they have no choice but to call. ### Help! My WMR Status Bars Have Disappeared Per the IRS, the **WMR tracker graphic may disappear** or not show if your return is still processing ([TC 152](https://savingtoinvest.com/what-does-irs-tax-topic-code-152-mean-for-my-refund-payment/)) or falls under **IRS review** after being received, because additional information is needed. The IRS still has your return — things are just on hold until it gets what it needs from you to continue processing. You’ll either see directions on WMR/IRS2Go, or the IRS will mail you contact information. Follow the instructions and return any additional information ASAP to [reduce further delays](https://savingtoinvest.com/why-is-it-taking-so-long-to-get-my-tax-refund/). An explanation ([see IRS tax or error codes](https://savingtoinvest.com/irs-tax-topic-error-codes-on-where-is-my-refund-wmr-and-irs2go/)) may show up on your transcript before WMR/IRS2Go updates. This can happen even if WMR previously showed “Return Received.” It’s also not uncommon to see **“N/A” on your transcript** along with missing or disappearing bars on WMR/IRS2Go. In this case, you’ll just need to wait for the IRS to finish processing. Talk to your accountant, a [tax advocate](https://savingtoinvest.com/contact-a-tax-advocate-to-help-get-your-refund-released-from-the-irs/), or a tax professional if you’re not clear on what the IRS needs. ### How Far Back Does WMR or IRS2Go Go? The IRS has made enhancements to WMR (and IRS2Go) that let you check your refund status for the **current tax year and two previous years** — helpful if you’re still waiting on a past-year return to process. Originally, WMR only covered the current tax year, with [tax transcripts](https://savingtoinvest.com/will-ordering-an-irs-tax-transcript-help-me-find-out-when-ill-get-my-refund/) as the source for prior years. You’ll need your SSN or ITIN, filing status, and expected refund amount from the original filed return for whichever year you’re checking. Note this multi-year checking is only available on the online WMR tool — calling the refund hotline still limits you to the current year’s return. ### Why Is My Refund Status Showing a Reduced Refund Message (Code 203 or 570)? Many taxpayers see a message that their refund has been approved for direct deposit (WMR status = Refund Sent), but that it’s been reduced. ![Refund Reduced Offset Status](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2022/02/image-5.png?resize=820%2C537&ssl=1)Refund Reduced Offset StatusThis just means your refund was garnished or reduced for a government (BFS) reason — a [tax offset](https://savingtoinvest.com/irs-refund-adjustments-and-treasury-bfs-offsets-tax-topic-codes-203-598-or-898/). Usually this is because you owe money to the federal government from a delinquent debt: overpaid unemployment, unpaid past-year taxes, and so on. Your return can also be held and reduced if you see [Tax Code 570](https://savingtoinvest.com/what-is-tax-code-tc-570-on-my-irs-transcript-and-will-it-delay-my-refund-account-freeze-or-additional-account-actions-pending/) on your transcript. This means your return is on hold for additional verification, which may or may not have a monetary impact — no further processing happens until the hold is lifted. See [more on why refunds come back lower than expected](https://savingtoinvest.com/why-is-my-tax-refund-so-low-compared-to-prior-years/) or [this video](https://youtu.be/MPDWJE8ZdGg). You’ll get a letter explaining the reason, and you can call or file an appeal ([via BFS](https://fiscal.treasury.gov/tax-refund-offset.html)) to claim back deducted amounts. ### Using Your IRS Transcript and Cycle Code for More Detail The limited detail in WMR/IRS2Go has pushed many filers to use their free [IRS tax transcript](https://savingtoinvest.com/will-ordering-an-irs-tax-transcript-help-me-find-out-when-ill-get-my-refund/) for more insight into their return/refund status. Your transcript shows various processing codes and a “cycle code.” The cycle code is an eight-digit number showing when your return posted to the IRS Master File (IMF). Combined with the [tax topic code](https://savingtoinvest.com/irs-tax-topic-error-codes-on-where-is-my-refund-wmr-and-irs2go/), it can give insight into your processing stage and potential direct deposit date. See a [deeper discussion of cycle codes here](https://savingtoinvest.com/irs-refund-cycle-code-and-dates-using-tax-transcript-to-get-master-file-information-for-your-direct-deposit-date/). ![WMR, IRS2Go app and transcript cycle code](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2022/02/image-2.png?resize=820%2C258&ssl=1)### Reader Feedback on IRS Delays (With Some Help) Here’s a sampling of comments and responses from readers of this site on WMR refund status and processing: *(From Dorothy)* We wait and wait all year long, then bam, we file, we get a big refund and we’re told 10 to 21 days — so what do we do? We sit here watching our tracker, checking WMR, checking IRS2Go, just waiting for our money. Then just when we’re not looking, something changes — our bars move and there’s our money. But here’s what bugs me the most: the IRS sees we owe them and tells us to pay right away, well before we get any notice. What if we made them wait the same way? *(From Brandi, on her WMR experience)* I e-filed on Jan 5th last year, but it wasn’t sent to the IRS until Jan 20th (when the IRS starts accepting returns). It was accepted the next day. **My bars on WMR disappeared after about a week** and never came back. I was informed my return went under review and to expect it in 6-8 weeks. I later received a letter asking me to verify my identity. I called and sat on hold for 1 hour 45 minutes before reaching a person. I verified my name, SSN, birthdate, address, and other details — none of which had changed in 10 years. I was told my return would go back to processing and to expect it within 6 more weeks. **Bottom line: don’t depend on the IRS to be fast.** Some people get their refund quickly, and others, like me, wait much longer. *(From Mary Elizabeth)* I understand this is stressful. My own bars disappeared for six days after being accepted. If you want to reach a real person at the IRS: first, make sure it’s around 7 AM EST (this timing helps you avoid long waits). Then call 1-800-829-0582 and press extension 633 — this department is quicker and will research your situation to give you a real answer. Please leave a comment if you need more help or want to share your own experience. ### Helpful Videos on IRS Refund Processing Delays - [No Tax Refund After 21 Days? Reasons Why and Tips on Contacting the IRS](https://youtu.be/QPArsW3gL1I) - [IRS Refund Status Timing and Disappearing WMR/IRS2GO Bars](https://youtu.be/QPArsW3gL1I) - [When Will I Get My Tax Refund? IRS Refund Processing Schedule and Top Reasons For Delays](https://youtu.be/3Q8wGVI0Uz4) ### Useful IRS Numbers for Refund Questions PurposeNumberTalk to a live person(800) 829-0582, ext. 652General tax help line(800) 829-1040 (press 1 for English, then 0, 0 again)Refund hotline (automated)(800) 829-1954TeleTax(800) 829-4477Taxpayer Advocate Service1-877-777-4778[TurboTax](https://savingtoinvest.com/turbotax) customer service(877) 908-7228[H&R Block](https://savingtoinvest.com/hrblock) customer service(800) 472-5625 Frequently Asked Questions QWhat's the difference between 'Return Received' and 'Refund Approved' on WMR? AReturn Received means the IRS has your return and is processing it, with no refund date yet. Refund Approved means processing is done and a specific refund date has been set. QHow often does Where's My Refund update? AOnce per day, usually overnight. Checking more than once a day won't show anything new since the update cycle is fixed. QWhy did my WMR status bars disappear? ADisappearing bars usually mean your return needs further review or identity verification, not that anything was rejected. Check your tax transcript for more detail and follow any letter instructions from the IRS. QHow long after Refund Sent will I actually get my money? ADirect deposit refunds typically arrive within 2 to 3 business days of the Refund Sent date. Paper checks can take 10 or more business days by mail. QMy refund was smaller than expected even though WMR says Refund Sent -- why? AThis usually means a Treasury offset for unpaid debt, or a Code 570 adjustment, reduced your refund. The IRS mails a letter explaining the exact reason and how to appeal. QCan I check refund status for a prior year's return? AYes. WMR and IRS2Go now cover the current tax year plus two prior years, though you'll need the SSN, filing status, and expected refund amount specific to that year. QWhen should I actually call the IRS about a delayed refund? AWait at least 21 days after e-filing (6 weeks for paper returns) before calling, since phone reps can't access more information before that. See my complete guide to why refunds get delayed for the full list of reasons and other options. **Categories:** Taxes and Retirement **Tags:** refund, Refund Approved, Refund Sent, Return Received --- ### [2026–2027 Updates: "Your Tax Return Is Still Being Processed" — What It Means and What to Do](https://savingtoinvest.com/latest-update-on-your-irs-tax-refund-processing-and-payment-status-how-returns-with-errors-are-handled/) **Published:** October 10, 2021 **Author:** Andy **Content:** ### Key Takeaways - 'Still being processed' and 'being processed' are different. The word 'still' signals your return has gone past the standard 21-day window. 'Being processed' (without 'still') is normal and means your refund is on track. - DOGE staffing cuts hit the IRS hard during the 2026 filing season - roughly 7,000 employees were let go in February 2026. Paper returns are now taking 8-12+ weeks; even many e-filed returns are running 3-5 weeks instead of the usual 21 days. - Code 810 (Refund Freeze) on your transcript is increasingly common in 2026. It means the IRS has flagged your return for identity verification or credit review - and your refund won't move until that's resolved. - Do not file an amended return if your original is delayed. It doesn't clear the hold and sends you to the back of a separate queue. - The Taxpayer Advocate Service (TAS) can intervene if your delay has caused financial hardship and you've been waiting more than 120 days without a resolution. Millions of people file their taxes and then wait — sometimes far longer than the IRS’s advertised 21-day guideline. The 2026 filing season made that worse. DOGE-driven staffing cuts removed roughly 7,000 IRS employees in February 2026, right in the middle of peak processing weeks. The National Taxpayer Advocate’s mid-year report to Congress confirmed that more than one million taxpayers didn’t receive their refunds within the normal timeframe, with an average wait of about 5.5 weeks. If you’re seeing a “still being processed” message on Where’s My Refund (WMR) or IRS2Go, here’s what it actually means — and what you can do about it. For the complete list of reasons refunds get delayed and what to do about each one, see my [full guide to tax refund delays](https://savingtoinvest.com/why-is-it-taking-so-long-to-get-my-tax-refund/). Covered in this Article: [Toggle](#) - [“Still Being Processed” vs. “Being Processed” — The Key Difference](https://savingtoinvest.com/latest-update-on-your-irs-tax-refund-processing-and-payment-status-how-returns-with-errors-are-handled/#%E2%80%9CStill_Being_Processed%E2%80%9D_vs_%E2%80%9CBeing_Processed%E2%80%9D_%E2%80%94_The_Key_Difference) - [“We Cannot Provide Any Information About Your Refund”](https://savingtoinvest.com/latest-update-on-your-irs-tax-refund-processing-and-payment-status-how-returns-with-errors-are-handled/#%E2%80%9CWe_Cannot_Provide_Any_Information_About_Your_Refund%E2%80%9D) - [Code 810 — Refund Freeze](https://savingtoinvest.com/latest-update-on-your-irs-tax-refund-processing-and-payment-status-how-returns-with-errors-are-handled/#Code_810_%E2%80%94_Refund_Freeze) - [What Happens When the IRS Manually Reviews a Return](https://savingtoinvest.com/latest-update-on-your-irs-tax-refund-processing-and-payment-status-how-returns-with-errors-are-handled/#What_Happens_When_the_IRS_Manually_Reviews_a_Return) - [Code 846 — Refund Issued](https://savingtoinvest.com/latest-update-on-your-irs-tax-refund-processing-and-payment-status-how-returns-with-errors-are-handled/#Code_846_%E2%80%94_Refund_Issued) - [IRS Staffing Cuts and What They Mean for Your Refund](https://savingtoinvest.com/latest-update-on-your-irs-tax-refund-processing-and-payment-status-how-returns-with-errors-are-handled/#IRS_Staffing_Cuts_and_What_They_Mean_for_Your_Refund) - [Identity Fraud and Verification Delays](https://savingtoinvest.com/latest-update-on-your-irs-tax-refund-processing-and-payment-status-how-returns-with-errors-are-handled/#Identity_Fraud_and_Verification_Delays) - [Amended Returns — How Long They Take](https://savingtoinvest.com/latest-update-on-your-irs-tax-refund-processing-and-payment-status-how-returns-with-errors-are-handled/#Amended_Returns_%E2%80%94_How_Long_They_Take) - [When to Contact the Taxpayer Advocate Service (TAS)](https://savingtoinvest.com/latest-update-on-your-irs-tax-refund-processing-and-payment-status-how-returns-with-errors-are-handled/#When_to_Contact_the_Taxpayer_Advocate_Service_TAS) - [Common Issues to Watch Out For](https://savingtoinvest.com/latest-update-on-your-irs-tax-refund-processing-and-payment-status-how-returns-with-errors-are-handled/#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027](https://savingtoinvest.com/latest-update-on-your-irs-tax-refund-processing-and-payment-status-how-returns-with-errors-are-handled/#Looking_Ahead_2027) ## “Still Being Processed” vs. “Being Processed” — The Key Difference The wording on WMR matters. There are two common messages and they mean very different things. **“We have received your tax return and it is being processed”** — this is the normal message. Your return is in the queue and a refund should arrive within 21 days of the IRS accepting it (for e-filed returns with no issues). No action needed. **“Your tax return is still being processed. A refund date will be provided when available”** — the word “still” is the signal. This means your return has gone past the standard processing window. The IRS has either flagged it for a manual review, found a discrepancy it needs to resolve, or is waiting on an identity verification step. The most common reasons a return gets flagged include: math errors, income or withholding mismatches against W-2 and 1099 data, EITC or Child Tax Credit verification, identity concerns, or an injured spouse claim. Most of these get resolved without any action from you — but it takes time, often 60 to 120 days beyond the original 21-day window. ![IRS2Go app showing the difference between 'being processed' and 'still being processed' refund status messages](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2022/02/image-21.png?resize=820%2C465&ssl=1)## “We Cannot Provide Any Information About Your Refund” This message shows up in two different situations and the context matters. If you just filed, this is normal — the IRS typically needs 24 to 48 hours before your return shows up in their system. Check back in a day or two. ![WMR Refund Status Results showing 'We cannot provide any information about your refund' with 24-hour wait message](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2023/01/image-17.png?resize=593%2C340&ssl=1)If it’s been several weeks and you’re still seeing this, it usually means the IRS needs you to take action — typically to verify your identity. Watch for a letter in the mail (IRS notices 5071C, 4883C, or 5747C are the most common). These letters will give you specific instructions to confirm your identity before processing can resume. If you used a tax preparer, contact them to confirm the return was filed with your correct information and ask them to forward the IRS e-file acknowledgment. ## Code 810 — Refund Freeze Code 810 on your IRS transcript is one I’ve been seeing readers ask about a lot more in 2026. It means the IRS has placed a freeze on your refund. Processing stops until the freeze is lifted. The most common triggers are identity concerns (two returns filed under the same SSN, an unusual filing location), income or withholding discrepancies that don’t match third-party data, or credit verification — particularly EITC and Child Tax Credit claims that get flagged through the IRS’s Automated Questionable Credit (AQC) program. What to do: check your IRS Online Account for any notices or messages, then follow the instructions on any letter you receive. If identity verification is required, complete it as directed — do not skip steps. After verification, the IRS says to allow up to 9 weeks for processing to resume. Check your transcript for code 571 (hold released) followed eventually by code 846 (refund issued). One thing not to do: don’t file an amended return (Form 1040-X) while your original is under review. It doesn’t clear the hold — it creates a second return that goes into its own separate queue and can itself be selected for review. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get updates when new IRS processing information becomes available.* ## What Happens When the IRS Manually Reviews a Return When a return requires human review rather than automated processing, it goes to a separate unit — which is why delays can compound quickly. An IRS agent has to manually cross-reference your return against third-party data (W-2s, 1099s, prior-year returns, dependent information from other agencies). This takes significantly longer than automated processing. Manual review delays used to run 90 to 120 days in a typical year. With the 2026 staffing reductions, those timelines have stretched further. The IRS received 48.1 million calls during the 2026 filing season, but telephone assistors answered only 9.9 million (21%), with average hold times of 14 minutes — worse than the prior year on both counts. *Example: Maria filed her taxes in late January with EITC claimed. By mid-March she had the “still being processed” message. Her transcript showed Code 810 (freeze) and Code 570 (additional account action pending). She received a letter in April asking her to verify employment income. After responding online, she waited seven more weeks before seeing Code 571 (hold released) and then Code 846 with a direct deposit date.* ## Code 846 — Refund Issued Code 846 on your transcript is the one you want to see. It means the IRS has completed processing and your refund has been authorized. The date next to Code 846 is your refund issue date — if you have direct deposit set up, the funds typically arrive within 1 to 5 business days of that date. If you’re waiting on a paper check, add 5 to 7 business days for mail. Once you see Code 846, you should also see an updated status on WMR showing a specific refund date. If WMR still shows “still being processed” but your transcript shows 846, trust the transcript — WMR sometimes lags by a day or two. ![IRS tax transcript showing Code 846 Refund Issued highlighted, along with other transaction codes](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2022/02/image-22.png?resize=820%2C405&ssl=1)## IRS Staffing Cuts and What They Mean for Your Refund The IRS entered the 2026 filing season with significantly fewer people than the year before. In February 2026, DOGE (Department of Government Efficiency) cut approximately 7,000 IRS employees — right in the middle of peak processing weeks. IT staffing was reduced by 27% and Taxpayer Services by about 22%. The National Taxpayer Advocate flagged these cuts directly to Congress as a primary driver of longer wait times and reduced phone accessibility this season. The practical impact: paper returns that used to take 6–8 weeks are now running 8–12+ weeks. E-filed returns without complications are still largely hitting the 21-day mark, but any return that gets flagged for manual review is taking longer than prior years to resolve. *Example: Tom filed a paper return in February. In prior years he expected his refund in 6–8 weeks. By May 2026 he was still waiting — over 12 weeks. He called the IRS and was told to wait another 60 days. His return was eventually processed in June, with no explanation provided and no interest paid (the IRS owes interest only on refunds not paid within 45 days of the filing deadline).* ## Identity Fraud and Verification Delays Refund fraud remains a significant issue, and the IRS continues to flag returns for identity verification when something looks off. The verification process — responding to letters like 5071C, completing ID.me verification, or calling the IRS — resets the processing clock once complete. If you receive a verification letter, respond as quickly as possible. Once you’ve verified, allow 9 weeks for processing before following up. Keep a copy of everything you submit. If you’ve had issues with identity theft in the past, or want to protect yourself proactively, consider setting up an IRS Identity Protection PIN (IP PIN) each year. It prevents anyone else from filing a return under your SSN and speeds up processing for your legitimate return. ## Amended Returns — How Long They Take Amended returns (Form 1040-X) continue to run on their own separate timeline — typically 16 to 20 weeks or more in 2026. You can track them at [Where’s My Amended Return](https://www.irs.gov/filing/wheres-my-amended-return) on IRS.gov. Don’t file a second 1040-X while the first is being processed. Don’t call the IRS before the 16-week window has passed — they can’t provide status until then, and the call just adds to hold time for everyone. ## When to Contact the Taxpayer Advocate Service (TAS) If your refund delay is causing genuine financial hardship — you can’t pay rent, utilities, medical bills — and you’ve already passed 120 days without resolution, the Taxpayer Advocate Service is your best escalation path. TAS operates independently within the IRS and can issue a Taxpayer Assistance Order to compel the IRS to act. You can request TAS help through the IRS website or by calling 1-877-777-4778. Be prepared to document the hardship specifically. See also: [Can a Taxpayer Advocate Help Get My Delayed Refund Released?](https://savingtoinvest.com/taxpayer-advocate-service-tas-can-help-get-my-delayed-irs-refund-released/) and the [IRS refund schedule and processing times](https://savingtoinvest.com/average-irs-and-state-tax-refund-and-processing-times/). --- ## Common Issues to Watch Out For A few patterns I see come up constantly in the comments on this post: **Checking WMR too early.** The tool needs 24 hours after e-filing and up to 4 weeks after paper filing before it shows your return. Checking earlier returns a “no information available” message that doesn’t mean anything is wrong. **Assuming “no bars” means a problem.** WMR shows a status bar that sometimes disappears. A missing bar doesn’t mean your refund was rejected or delayed — it often just means WMR refreshed its display. Check your transcript for the real status. **Calling the IRS before 21 days.** IRS phone assistors literally cannot provide additional information until 21 days have passed for e-filed returns or 6 weeks for paper returns. You’ll just spend 14+ minutes on hold to be told to wait. **Ignoring IRS mail.** Any letter from the IRS should be read and acted on promptly. A 5071C identity verification letter has a deadline — missing it extends your delay significantly. The IRS doesn’t send emails; if you get an “IRS email,” it’s a scam. **Expecting interest on delayed refunds.** The IRS owes interest on refunds not paid within 45 days of the filing deadline — but only if the entire delay is the IRS’s fault and you filed on time. If verification was required and you took time to respond, that period typically doesn’t count. --- ## Looking Ahead: 2027 The IRS staffing situation is the biggest variable for the 2027 filing season. If DOGE-related cuts continue or deepen, expect similar or longer delays. If some staffing is restored — particularly in Taxpayer Services and IT — processing times could improve. The IRS’s e-filing infrastructure (the systems that handle automated matching of W-2s and 1099s) is largely separate from the personnel cuts and should continue to process the majority of clean e-filed returns within 21 days. The pain point is the subset of returns that require human review — and that subset will take longer as long as staffing remains reduced. I’ll update this page at the start of the 2027 filing season with current processing statistics and any new status message changes. [Subscribe here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get notified. See also: [No Tax Refund After 21 Days? Tips on Contacting the IRS](https://savingtoinvest.com/still-waiting-for-my-refund-as-my-tax-return-is-not-processed-whats-next/) | [2026 IRS Refund Schedule and Processing Times](https://savingtoinvest.com/average-irs-and-state-tax-refund-and-processing-times/) --- Frequently Asked Questions QWhat does 'your tax return is still being processed' mean in 2026? AIt means your return has gone past the standard 21-day processing window. The IRS has either flagged it for manual review, found a discrepancy it needs to resolve, or is waiting on an identity verification step. The word 'still' is the key difference from 'we have received your tax return and it is being processed,' which is the normal status message. Expect a delay of at least 60 to 120 additional days, though 2026 DOGE staffing cuts have pushed some cases longer. QWhat is Code 810 on my IRS transcript? ACode 810 means the IRS has placed a freeze on your refund - processing stops until the freeze is lifted. Common triggers include identity concerns (someone else may have filed under your SSN), income or withholding discrepancies that don't match W-2 and 1099 data, or credit verification for EITC or Child Tax Credit claims. Check your IRS Online Account for any notices and follow the instructions on any letter you receive. Allow up to 9 weeks after completing verification before following up. QWhy is my 2026 tax refund taking so long? AThe 2026 filing season was significantly affected by DOGE-driven IRS staffing cuts - approximately 7,000 employees were let go in February 2026, including 22% of Taxpayer Services staff. Paper returns are running 8-12+ weeks, and any e-filed return that requires manual review is taking longer than prior years. E-filed returns with no issues are still largely hitting the 21-day window. QWhat does Code 846 mean on my transcript? ACode 846 (Refund Issued) means the IRS has completed processing and your refund has been authorized. The date next to it is your expected deposit date. Direct deposit typically arrives within 1 to 5 business days of that date; paper checks take 5 to 7 additional days by mail. If WMR still shows 'being processed' but your transcript shows 846, trust the transcript - it's the authoritative record and WMR sometimes lags. QShould I file an amended return if my refund is delayed? ANo. Filing an amended return (Form 1040-X) while your original is under review doesn't clear the hold - it creates a second return that goes into its own separate processing queue and can itself be selected for review. Wait for the IRS to complete processing of your original return first. QWhat should I do if I receive an IRS verification letter? ARespond as quickly as possible. IRS letters 5071C, 4883C, and 5747C all require you to verify your identity before processing can resume. You can typically respond online at IRS.gov/IdentityVerification or call the number on the letter. Once you've completed verification, allow up to 9 weeks for processing. Keep a copy of everything you submit. After verification, watch for Code 571 (hold released) and then Code 846 (refund issued) on your transcript. QWhen should I contact the Taxpayer Advocate Service (TAS)? AContact TAS if your refund delay is causing genuine financial hardship - inability to pay rent, utilities, or medical bills - and you've been waiting more than 120 days without a resolution from the IRS. TAS operates independently within the IRS and can issue a Taxpayer Assistance Order to compel action. Call 1-877-777-4778 or request help through IRS.gov. Be prepared to document the specific hardship. **Categories:** Taxes and Retirement --- ### [how long does it take to get your Delayed tax refund direct deposit?](https://savingtoinvest.com/2022-refund-payments-and-processing-for-2021-tax-returns-likely-to-face-long-delays/) **Published:** January 19, 2022 **Author:** Andy **Content:** Many tax filers are now seeing messages on their IRS2Go and WMR app that confirm their tax returns are going to take longer than normal to process. [Tax Topic 152](https://savingtoinvest.com/what-does-irs-tax-topic-code-152-mean-for-my-refund-payment/ "Tax Topic 152"), which just alludes to ongoing and potential processing delays, has not provided much help. So some are turning to their tax [transcript](https://savingtoinvest.com/will-ordering-an-irs-tax-transcript-help-me-find-out-when-ill-get-my-refund/ "transcript") and IRS[ cycle codes](https://savingtoinvest.com/irs-refund-cycle-code-and-dates-using-tax-transcript-to-get-master-file-information-for-your-direct-deposit-date/ " cycle codes") to infer refund processing dates, but even that seems to be updating irregularly. The IRS also announced that early filers claiming the CTC and EITC credits, and hence subject to the [PATH freeze](https://savingtoinvest.com/tax-refund-payment-delays-likely-according-to-the-irs/ "PATH freeze") will only see refund payments and direct deposits from late February. Generally, the IRS issues more than 90% of refunds in less than 21 days. However, it’s possible your tax return [may require additional review](https://savingtoinvest.com/irs-tax-transcript-reviews-for-adjusted-amended-returns-with-no-refund-or-offsets-delaying-payment/ "IRS Tax Transcript Reviews For Adjusted Amended Returns With No Refund or Offsets Delaying Payment") and could take [longer than the standard time. ](https://savingtoinvest.com/your-tax-return-is-not-processed/) > Based on the latest data, \[the IRS\] had over 1.8 million unprocessed individual returns. These include prior year tax returns that need review or correction and late filed prior year returns. > > This work does not typically require the IRS to correspond with taxpayers, but it does require special handling by an IRS employee which results in processing and refund delays. > > [IRS](https://www.irs.gov/newsroom/irs-operations-during-covid-19-mission-critical-functions-continue) I will continue to monitor/update readers on refund payments, processing delays and you can [subscribe here ](/subscribe "subscribe here ")or via the following options to get the latest news. **[Get the latest money, tax and stimulus news directly in your inbox](/subscribe "Subscribe via Email")** ![IRS processing delays and code 152](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2022/02/image-9.png?resize=820%2C865&ssl=1) --- ### IRS Processing With the pandemic entering it’s third year and ongoing staffing shortages, the IRS has confirmed what many have known – tax return processing and refund payments will likely take longer than expected this year. A trend that was clear last year, [IRS refund processing](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/ "IRS refund processing") and payments may get even worse. Recent headlines from major publications all but confirmed this, as did the IRS’ own reporting. The theme was evident everywhere. Unlike refund payment delays [last year,](https://youtu.be/kKnaAc6DIco "last year,") the IRS is trying to [get ahead](https://www.irs.gov/newsroom/2022-tax-filing-season-begins-jan-24-irs-outlines-refund-timing-and-what-to-expect-in-advance-of-april-18-tax-deadline "get ahead") of the bad news and issued their own warnings and what to do. However, even you [file early](https://savingtoinvest.com/should-i-file-my-2021-return-if-i-am-still-waiting-for-my-2020-return-to-be-processed-by-the-irs/ "file early") and correctly as recommended using the [best tax software providers](https://savingtoinvest.com/the-best-tax-software-and-free-filing-options-as-tax-filing-goes-primarily-online/ "best tax software providers"), you will still likely face delays if your return has issues with items related to the advance [child tax ](https://savingtoinvest.com/child-and-kiddie-tax-credit-and-income-thresholds/ "child tax ")or [earned income](https://savingtoinvest.com/2021-earned-income-credit-limit-and-child-tax-credit-increase-updates/ "earned income") tax credit. Ultimately many taxpayers will need to call the IRS to resolve their tax related issues, but that is going to be a lengthy process as [getting through to a live agent](https://savingtoinvest.com/how-can-i-actually-speak-to-a-real-person-or-agent-at-the-irs-phone-numbers-that-work/ "getting through to a live agent") can take hours during the peak of tax season. But here are some tips and items to remember. [![](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2022/01/image-5.png?resize=820%2C454&ssl=1)](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2022/01/image-5.png?ssl=1) For more on the IRS tax season and useful FAQs, consider subscribing via the options below to get the latest articles. Feel free to leave a comment below as well with your experiences or to help others stuck waiting for a refund. **Categories:** Taxes and Retirement --- ### [Are You Owed a Tax Refund Interest Payment? 2026 IRS Rate and Rules](https://savingtoinvest.com/millions-set-to-receive-irs-tax-refund-interest-payments/) **Published:** August 18, 2020 **Author:** Andy **Content:** ### Key Takeaways - The IRS pays 7% interest (individual overpayments) on refunds delayed more than 45 days past the filing deadline, as of Q3 2026. - Interest only applies from the filing deadline forward - early filers who got paid before the deadline aren't eligible. - The interest payment is taxable income and arrives via Form 1099-INT. - It's paid separately from your refund, often as a distinct deposit or check. - With over 14 million returns suspended this season, more filers than usual are likely to cross the 45-day threshold. You’ve probably heard the old line that getting a tax refund just means you gave the IRS an interest-free loan for the year. There’s a wrinkle to that, though: if your refund is delayed, the IRS actually owes *you* interest. By law, the IRS must pay interest on a refund it hasn’t issued within 45 days of the tax season filing deadline. For the third quarter of 2026, that rate is **7%** for individual overpayments, compounded daily, per the IRS’s quarterly interest rate schedule. Covered in this Article: [Toggle](#) - [How the Payment Is Calculated](#How_the_Payment_Is_Calculated) - [Why Interest Payments Are More Common Right Now](#Why_Interest_Payments_Are_More_Common_Right_Now) - [The Payment Is Taxable](#The_Payment_Is_Taxable) - [When Will I Get Paid?](#When_Will_I_Get_Paid) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027](#Looking_Ahead_2027) ## How the Payment Is Calculated The 45-day clock starts from the filing deadline, not from when you personally filed — so if you filed early and got your refund before the deadline, you won’t get an interest payment at all. Same goes for anyone who filed late or under an extension. For a $3,275 refund (roughly this season’s average, per the National Taxpayer Advocate’s mid-year report), a full year of delay at a 7% annual rate compounded daily works out to somewhere around $230 — not a huge sum, but a real one if you’re already waiting months on the underlying refund. Rates are reset quarterly based on the federal short-term rate plus 3 percentage points for individuals (2 points for corporations), so the exact number can shift from one quarter to the next. Check the [IRS’s quarterly interest rates page](https://www.irs.gov/payments/quarterly-interest-rates) for the current figure if you’re calculating this outside tax season. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates when the IRS resets quarterly rates.* ## Why Interest Payments Are More Common Right Now With over 14 million returns suspended for review this season and more than 1 million taxpayers waiting an average of 5.5 weeks beyond normal processing, according to this year’s National Taxpayer Advocate report, a meaningfully larger share of filers are crossing that 45-day threshold than in a typical smooth season. If your refund is [taking longer than expected](https://savingtoinvest.com/why-is-it-taking-so-long-to-get-my-tax-refund/), the silver lining is that the meter is running in your favor once you pass day 45. ## The Payment Is Taxable Here’s the part people miss: refund interest is treated as ordinary income. The IRS will send you a Form 1099-INT for the amount, and you’ll need to report it on next year’s return. Since the IRS itself is issuing the form, there’s no real way to leave it off without it flagging a mismatch. ## When Will I Get Paid? The interest payment is issued separately from your actual refund, but generally through the same method — direct deposit if that’s how your refund arrived, a paper check if that’s how you were paid. Don’t expect a single combined deposit; it’s common to see the refund and interest arrive as two separate transactions, sometimes weeks apart. ## Common Issues to Watch Out For **Assuming early filers get this too.** If you filed early and were paid before the season’s filing deadline, you’re not eligible — the 45-day rule only kicks in relative to the deadline itself, not your personal filing date. **Forgetting to report it as income.** The 1099-INT you receive isn’t optional paperwork — it’s real income the IRS already knows about. **Expecting a large payment.** For most filers this ends up being $20–$250 depending on the refund size and delay length. It’s a nice bonus, not a windfall. **Confusing this with a Treasury Offset reversal.** Interest payments are unrelated to offsets. If your refund was reduced for a federal debt, that’s a separate issue — see the [refund offset guide](https://savingtoinvest.com/irs-refund-adjustments-and-treasury-bfs-offsets-tax-topic-codes-203-598-or-898/) for how that works. ## Looking Ahead: 2027 I’ll be watching the IRS’s quarterly rate announcements as the year goes on — these typically post a few weeks before each new quarter starts. Given how many returns were suspended this season, I’d expect refund interest payments to remain more common than usual heading into 2027 unless IRS processing capacity improves meaningfully. I’ll update this page each time the rate resets or new guidance comes out. Frequently Asked Questions QWhat is the current IRS refund interest rate? A7% for individual overpayments in the third quarter of 2026, compounded daily. The IRS resets this rate quarterly based on the federal short-term rate plus 3 percentage points for individuals. QDo I have to pay taxes on IRS refund interest? AYes. The IRS sends a Form 1099-INT for any refund interest paid, and it counts as ordinary taxable income on your next return. QWhy didn't I get a refund interest payment? AIf you filed early and received your refund before the tax season filing deadline, you're not eligible. The 45-day rule only applies to refunds still outstanding after the deadline itself. QIs the refund interest payment sent with my regular refund? ANo, it's typically issued separately, though usually through the same payment method (direct deposit or paper check) as your original refund. **Categories:** Taxes and Retirement --- ### [Can a Taxpayer Advocate Help Get My Delayed Refund Released? 2026 Update](https://savingtoinvest.com/contact-a-tax-advocate-to-help-get-your-refund-released-from-the-irs/) **Published:** March 2, 2017 **Author:** Andy **Content:** ### Key Takeaways - TAS is a free, independent unit within the IRS - never pay a third party claiming to offer this exact service. - Your return must already be processing (not in 'suspense') before TAS can help. - File Form 911 to request assistance; allow up to 30 days for a response and advocate assignment. - TAS only accepts cases where it can meaningfully improve the outcome, prioritized by documented financial hardship. - Identity theft cases are taking close to two years to resolve in 2026, with over 500,000 cases pending at season's end. The Taxpayer Advocate Service (TAS) is an independent organization within the IRS that helps filers with tax problems they can’t resolve through normal channels, or who’ve exhausted standard IRS contact options without a real answer. Every state has at least one local TAS office, independent of the regular IRS office. They’re especially useful for filers who can’t afford a CPA or tax attorney and are dealing with a [refund delay](https://savingtoinvest.com/why-is-it-taking-so-long-to-get-my-tax-refund/) that standard channels haven’t resolved. Covered in this Article: [Toggle](#) - [Why This Matters More in 2026](#Why_This_Matters_More_in_2026) - [How Do I Get a Taxpayer Advocate?](#How_Do_I_Get_a_Taxpayer_Advocate) - [Your Return Must Already Be Processing (Not in “Suspense”)](#Your_Return_Must_Already_Be_Processing_Not_in_%E2%80%9CSuspense%E2%80%9D) - [Dealing With the TAS: Two Illustrative Examples](#Dealing_With_the_TAS_Two_Illustrative_Examples) - [Amended Returns and Taxpayer Advocate Help](#Amended_Returns_and_Taxpayer_Advocate_Help) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027](#Looking_Ahead_2027) ## Why This Matters More in 2026 Per the National Taxpayer Advocate’s mid-year report to Congress (June 24, 2026), the IRS’s Taxpayer Protection Program line — the number taxpayers call when their return is suspended for identity verification — received about 2.4 million calls this season. The IRS answered only 19% of them, with a 20-minute average wait for calls that connected. Cases that move past the phone line into actual identity theft casework are now taking close to two years to resolve. More than half a million of these cases were still open at the end of the filing season. This is the exact situation TAS exists to help with, though it’s worth setting expectations: TAS itself is also stretched thin by the same volume. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates as TAS reports new data throughout the year.* ## How Do I Get a Taxpayer Advocate? You can engage TAS directly by filing [Form 911](https://www.taxpayeradvocate.irs.gov/contact-us/submit-a-request-for-assistance/), a Request for Taxpayer Assistance Order. The IRS can also refer you to TAS on its own if your return has been processing for months and you need help resolving it. Submit Form 911 by mail or fax after your return has actually been [processed](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) — not before. Once submitted or referred, allow up to 30 days for a response and an advocate to be assigned. If your case is accepted, you could see relief a few weeks after that. Given current volume, expect TAS to take longer than usual to respond, and expect long hold times if you try calling their line directly. It’s also worth noting that TAS does not accept every case — per their own procedures, they only take cases where they can meaningfully expedite or improve the outcome for the taxpayer. ## Your Return Must Already Be Processing (Not in “Suspense”) TAS can’t help if the IRS hasn’t loaded your return and started processing it yet. Returns sitting in “suspense” status, awaiting initial IRS action, account for the majority of the longest delays this season, and TAS has no ability to accelerate that first step. ## Dealing With the TAS: Two Illustrative Examples These two composite scenarios (not tied to a specific season) show the kind of situations where TAS involvement tends to make a real difference. **Lisa’s case:** Lisa filed in late January and her return was accepted within two days. Where’s My Refund showed one bar and Tax Topic 152 for about a week, then a 4464C letter arrived asking her to wait 60 days for a review tied to the credits she’d claimed. After the 60 days passed with no update and a second notice asking for another 60 days, she contacted a tax advocate directly. The advocate submitted a Form 911 on her behalf, and within about a week of faxing the requested documentation (proof of a dependent’s residency), her refund was released. The full cycle from first advocate contact to refund took roughly two weeks — dramatically faster than waiting on the standard review queue alone. **Marcus’s case:** Marcus’s return was flagged for identity verification after he moved and filed from a new address. He tried the Taxpayer Protection Program line for several weeks without getting through, given the 19% answer rate reported this season. He eventually asked the IRS directly to open a TAS case when he did reach an agent, framing the delay as a financial hardship since he was relying on the refund for a security deposit. TAS accepted the case given the documented hardship and got his identity verification processed faster than the standard queue would have. The common thread in both: TAS works best when you can clearly document what’s being held up and why it’s causing genuine hardship, not just frustration with the wait. ## Amended Returns and Taxpayer Advocate Help If your amended return is still waiting on initial IRS processing, TAS generally won’t accept your case until you’ve heard back from the IRS on that first review — even if you’re facing financial hardship. Once IRS processing is complete and a *new* problem or delay emerges, TAS can help the same way it does with original returns, following the same Form 911 process, prioritized by submission order and hardship level. ## Common Issues to Watch Out For **Contacting TAS before your return has started processing.** This is the single most common reason a Form 911 gets rejected — TAS has no ability to intervene in the pre-processing “suspense” stage. **Expecting an instant response.** Even accepted cases typically take a few weeks to show movement. Budget accordingly rather than expecting overnight results. **Not documenting the hardship clearly.** TAS prioritizes cases with a documented financial hardship — an eviction notice, a shutoff notice, a specific bill you can’t pay. Vague frustration with the wait isn’t the same thing in their intake process. **Assuming TAS is a paid service or private company.** It’s a free, independent unit inside the IRS. You should never need to pay anyone claiming to be a “tax advocate” for this specific service. ## Looking Ahead: 2027 Whether TAS’s resolution times improve next season will depend heavily on whether the IRS can raise that 19% TPP phone-answer rate, since identity verification delays are the single biggest driver of the multi-month waits TAS handles. I’ll be watching for updates in the National Taxpayer Advocate’s annual report to Congress, typically released each January, and will update this page as new data comes in. Frequently Asked Questions QHow do I contact a Taxpayer Advocate? AFile Form 911, Request for Taxpayer Advocate Service Assistance, by mail or fax. The IRS can also refer you to TAS directly if your return has been processing for several months without resolution. QHow long does it take to get a Taxpayer Advocate assigned? AAllow up to 30 days for TAS to respond to a Form 911 request and assign an advocate, assuming your case is accepted. QCan TAS help before my return starts processing? ANo. TAS cannot intervene while your return is in 'suspense' status awaiting initial IRS processing - this is the most common reason a Form 911 request is denied. QDoes the Taxpayer Advocate Service cost money? ANo, TAS is a free, independent organization within the IRS. Be wary of any third party charging a fee to 'connect' you with a tax advocate. QWill TAS accept every case? ANo. TAS only accepts cases where it can meaningfully expedite or improve the outcome, and generally prioritizes documented financial hardship over general frustration with wait times. **Categories:** Taxes and Retirement **Tags:** advocate, Filing, IRS, refund, TAS, tax, Tax Advocate Service, WMR --- ### [No Tax Refund or Status After 21 days? Tips On Contacting the IRS For Payment and Processing Updates](https://savingtoinvest.com/no-tax-refund-after-21-days-tips-on-contacting-the-irs/) **Published:** March 27, 2019 **Author:** Andy **Content:** ### Key Takeaways - Don't call the IRS before 21 days have passed for an e-filed return (6 weeks for paper) - agents can't research your refund before then. - Calling early or late in the day, and on Tuesdays or Thursdays, tends to improve your odds of reaching a live agent. - The Interactive Tax Assistant (ITA) tool can answer general questions without any hold time. - Form 8379 injured spouse claims and PATH Act holds for EITC/ACTC are routine delays, not errors. - If your refund amount was reduced rather than delayed, check for a Treasury Offset before assuming something is wrong. As the IRS notes, 9 out of 10 filers get their refund within 21 days of an accepted e-filed return. But that also means roughly 1 in 10 filers — over 15 million people in a typical season — wait longer than that. If you’re past 21 days (or 6 weeks for a paper return) with no movement on Where’s My Refund, this page covers your actual options for getting a real update: which numbers get you a live agent, when to call, and how to get help without picking up the phone at all. For the full breakdown of *why* refunds get delayed in the first place — PATH Act holds, identity verification, offsets, and the rest — see my [complete guide to tax refund delays](https://savingtoinvest.com/why-is-it-taking-so-long-to-get-my-tax-refund/). This page focuses specifically on what to do once you’ve hit the 21-day mark with no answer. Covered in this Article: [Toggle](#) - [What To Do First](#What_To_Do_First) - [Only After 21 Days: Calling the IRS](#Only_After_21_Days_Calling_the_IRS) - [ITA — Getting Help Without Calling the IRS](#ITA_%E2%80%94_Getting_Help_Without_Calling_the_IRS) - [A Note on Special Circumstances](#A_Note_on_Special_Circumstances) - [Looking Ahead](#Looking_Ahead) ## What To Do First Before calling anyone, check [Where’s My Refund (WMR) or the IRS2Go app](https://savingtoinvest.com/wmr-and-irs2go-status-differences-return-received-accepted-or-under-review-and-refund-approved-versus-refund-sent/). It updates once every 24 hours, usually overnight, and will show a status code or message if the IRS needs something from you. You can also check your [IRS tax transcript](https://savingtoinvest.com/using-your-irs-transcript-to-get-your-tax-return-and-refund-processing-status-and-key-dates/) for more granular detail, including transaction codes like [570](https://savingtoinvest.com/what-is-tax-code-tc-570-on-my-irs-transcript-and-will-it-delay-my-refund-account-freeze-or-additional-account-actions-pending/) (additional review pending) or [203](https://savingtoinvest.com/irs-refund-adjustments-and-treasury-bfs-offsets-tax-topic-codes-203-598-or-898/) (an offset was applied). Note that the IRS has said directly that being able to pull your transcript does not mean your refund is imminent — it’s a separate system from WMR. If you’re seeing [Tax Topic 152](https://savingtoinvest.com/what-does-irs-tax-topic-code-152-mean-for-my-refund-payment/), that’s just the default “still processing” message and needs no action. If it’s Tax Topic 151 or a specific reference code, your return has likely been pulled for closer review and a letter may be on its way. ## Only After 21 Days: Calling the IRS To reiterate — **don’t call before 21 days** for an e-filed return (6 weeks for paper). The IRS explicitly instructs its own agents not to research your refund before then, so calling early just gets you told to wait. Once you’re past that window, you can call the main IRS line at 1-800-829-1040, available 7 AM–7 PM local time, Monday through Friday. Calling early or late in the day, and on Tuesdays or Thursdays, seems to improve your odds of getting through faster. Below are four specific approaches readers report having success with — expect to need a few attempts and some patience regardless of which one you try. **Option 1:** 1. Call 1-800-829-0582. 2. Do **not** select Option 1 for English. 3. Wait for the automated voice to finish, then enter extension 652. 4. You may hit high call volume and need to redial, but this generally reaches a live agent. **Option 2:** - Call 1-800-829-1040. - After choosing your language, do **not** choose Option 1 (refund info) or Option 7 (economic impact payment). - Choose Option 2 for “personal income tax.” - Press 1 for “form, tax history, or payment.” - Press 3 for “all other questions,” then press 2 for “all other questions” again. - When asked for your SSN or EIN, don’t enter anything — after it asks twice, you’ll reach another menu. - Press 2 for personal or individual tax questions, which should transfer you to an agent. **Option 3:** Call the IRS Refund Hotline at 1-800-829-1954 and follow the prompts. **Option 4:** Contact the [Taxpayer Advocate Service](https://savingtoinvest.com/contact-a-tax-advocate-to-help-get-your-refund-released-from-the-irs/), an independent unit within the IRS. They’re limited in what they can do until your return has actually started processing, but they can be a useful next step if standard channels haven’t worked and you’re facing real hardship. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates on IRS contact options as they change.* ## ITA — Getting Help Without Calling the IRS If you’d rather skip the phone entirely, the IRS’s [Interactive Tax Assistant (ITA)](https://www.irs.gov/help/ita) uses an AI-driven question tree covering common topics like filing status, dependent eligibility, refund status, and general tax law questions. It won’t give you a personalized update on your specific refund, but it’s a solid first stop for general questions before you commit to a long hold time. ## A Note on Special Circumstances If your return includes a Form 8379, Injured Spouse Allocation, expect it to take longer regardless of what WMR shows — these require additional manual processing, sometimes 11 to 14 weeks, and calling won’t speed that up. Similarly, if your refund is lower than expected rather than simply delayed, that’s usually a [Treasury Offset](https://savingtoinvest.com/irs-refund-adjustments-and-treasury-bfs-offsets-tax-topic-codes-203-598-or-898/) for a federal debt (back taxes, defaulted student loans, child support) rather than a processing issue. You’ll get a separate notice, and you can call the Treasury Offset Program directly at 800-304-3107 with questions about that specific deduction. If you claimed the [Earned Income Tax Credit](https://savingtoinvest.com/earned-income-tax-credit-eitc-qualification-and-income-threshold-limits/) or the [Child Tax Credit](https://savingtoinvest.com/child-and-kiddie-tax-credit-and-income-thresholds/), keep in mind the PATH Act holds these refunds until at least mid-to-late February regardless of when you filed — that’s routine, not a red flag. ## Looking Ahead I’ll keep updating the phone menu options above as the IRS changes its call-routing system, since these do shift from year to year. If you’ve found a route to a live agent that isn’t listed here, drop it in the comments — I update this list based on what’s actually working for readers each season. Frequently Asked Questions QWhat's the best IRS phone number to reach a live agent? ATry 1-800-829-0582 and enter extension 652 after the automated greeting (skip the English-language prompt). The main line, 1-800-829-1040, also works using the menu sequence described above, though it can require more patience. QHow long should I wait before calling the IRS about my refund? AAt least 21 days after an e-filed return is accepted, or 6 weeks for a paper return. Calling earlier won't get you any information since the IRS hasn't started researching refunds that haven't hit that threshold yet. QCan the Taxpayer Advocate Service help me get my refund faster? ASometimes, but only after your return has actually started processing and only if your situation meets their criteria for meaningful help, typically involving financial hardship. QDoes calling the IRS speed up my refund? ANo. IRS phone agents can give you information about your return, but they don't process refunds - that happens in a separate system. Checking Where's My Refund or your tax transcript is the fastest way to see updates. **Categories:** Taxes and Retirement --- ### [Am I Being a Cheapskate or Just Frugal?](https://savingtoinvest.com/am-i-cheapskate-or-just-frugal/) **Published:** December 19, 2008 **Author:** Andy **Content:** In an argument with my wife over our holiday spending on gifts, travel and entertainment, I got accused of being a cheapskate because I refused to put aside money/budget worries during the holiday season. *“What’s the point of saving if we cannot spend the money on the ones we love?”* she said, but the worst line was *“If we die tomorrow, our money won’t go with us, so spend some now and have fun.”* I responded that given that we maybe heading into some tough economic times and hopefully not dying anytime soon, it is even more important to be careful with spending now and to try and save as much as possible in the advent of a job loss or more dark days ahead. Further, I added that [debt](https://savingtoinvest.com/10-ways-to-get-out-of-debt-starting-now/ "10 Ways To Get Out Of Debt Starting Now") stops for no one and that just a few days of over indulgence can cause pain for many months ahead. Her retort was that I was over reacting and that as we had a decent amount of emergency savings, two jobs and little high-interest debt, a little over indulgence now is okay. YOLO after all. Perhaps she is right. Given the economic state of the nation and AI driven [job security](https://savingtoinvest.com/5-clear-signs-your-job-is-in-danger-and-five-things-to-do-now/) concerns, I admit I am much more careful with my expenses and probably question purchases much more than I used to. *Still, being called a cheapskate?* That hurt. I like to think of myself as [frugal](https://savingtoinvest.com/frugalitythrift-and-saving-new-norm/ "Frugality, Thrift and Saving – The New Norm"). I am well aware that hoarding money is unhealthy and have no issue spending money where needed on experiences and for good times. But unnecessary and impulse spending really frustrates me. For example why pay full price for a great designer purse, when most likely it will be on sale in a few weeks. Patience is a big money saver! I have no issue spending money on gifts for family and friends. In fact gift giving/receiving is a big part of the holidays, and seeing the happiness you bring to someone with a nice gift is a joy. But surely the most expensive or commercial gift is not always the best. As I get older I find it is the time I spend with the people I love that matters, not only the money I spend on them. The exception being my young nephews and nieces. whose love seems to have a direct correlation with the number of toys I buy them (I put this down to age)! ![ Frugality, Saving, Money, Spending](https://i0.wp.com/1.bp.blogspot.com/_7VCdlb0ogAQ/SUsb3CKvMyI/AAAAAAAAA1A/kNkrQYj34SQ/s200/saving%2Bmoney.jpg?w=820) **Being frugal** and using budget tools to track my spending over the last few years has held our household finances in good stead; especially compared to friends who despite outward appearances of success (big house, expensive cars) seem to be living [pay check to pay check](https://savingtoinvest.com/your-four-step-plan-towards-financial-healing-breaking-the-paycheck-to-paycheck-syndrome/ "Financial Healing By Breaking the Paycheck to Paycheck Syndrome"), always complaining of how expensive things are and how little they have saved. However, I think my best frugal move was “paying myself first” through [maxing out my 401K](https://savingtoinvest.com/taking-advantage-of-new-401k/ "Maximum 401k Contribution Limits") contributions and regularly putting 15% of my pay into various taxable investment funds. I also set up flexible spending accounts ([FSA](https://savingtoinvest.com/flexible-and-dependent-care-spending-accounts-fsa-contribution-limits/ "Health and Dependent Care Flexible Spending Accounts (FSA) IRS Contribution Limits")) ahead of time to ensure our [health care costs](https://savingtoinvest.com/health-care-plans-10-tips-on-choosing/) were covered. All these actions forced us to live on a lower after tax income, and as I explained to my wife some short term drop in purchasing power will set us up for a much more secure future. So if I have got my financial future in order, should I completely forget about my day-to-day expenses and just do whatever the heck I feel like – no matter the cost – the answer, I’m afraid, is no. I think living within one’s means, while still “living” life, is eminently possible. It comes to making smart spending choices and avoiding impulse buying. If I want to go out for a night with friends, see a movie or buy a new gadget, I will do that that. Just in moderation and according to a monthly budget. *But has being tight with a dollar gotten in the way of my enjoying life?* Yes, there have been times when I wanted the latest electronic toy or to travel first class (instead of being cramped in coach), but overall I have never felt deprived and having **financial peace of mind** is priceless. As a society, America has lived beyond its means for many years and the resultant mega-debt snowball we created from this excess consumption is one of the underlying causes of the recession we are now in. As people realize they cannot get access to cheap debt anymore they will have to start watching every penny they spend and like it or not frugality will be the norm. Then I can tell my wife “I am just like everyone else”. **Categories:** Personal Finance and Money **Tags:** Frugal, job, saving --- ### [2026–2027 Updates: Key Retirement Ages for 401(k), IRA, and Social Security — Milestones That Determine Your Benefits](https://savingtoinvest.com/retirement-ages-and-eligilbility-rules-for-receiving-401k-ira-and-social-security-beneifts/) **Published:** June 25, 2011 **Author:** Andy **Content:** ### Key Takeaways - Age 59½ is the main unlock - penalty-free withdrawals from 401(k), IRA, and Roth IRA (if the 5-year rule is met). - RMD start age is now 73 if you were born 1951-1959, and will increase to 75 for those born 1960 or later (starting 2033). - Delaying Social Security to 70 increases your annual benefit by up to 24% over claiming at full retirement age (67). - Ages 60-63 get a 'super catch-up' for 401(k) contributions under SECURE 2.0 - $11,250 vs. the $8,000 that applies to other savers over 50. - SECURE 2.0 reduced the missed-RMD penalty from 50% to 25% - and to just 10% if corrected within two years. Knowing the exact age at which something happens to your retirement accounts is more valuable than most general planning advice. Miss an RMD at 73 and you’re looking at a 25% penalty. Claim Social Security two years too early and that reduction follows you for life. Here’s a clear map of every age milestone that matters. Covered in this Article: [Toggle](#) - [Quick-Reference: Retirement Age Milestones for 2026](#Quick-Reference_Retirement_Age_Milestones_for_2026) - [Age 50 — Catch-Up Contributions Begin](#Age_50_%E2%80%94_Catch-Up_Contributions_Begin) - [Ages 60–63 — The SECURE 2.0 “Super Catch-Up”](#Ages_60%E2%80%9363_%E2%80%94_The_SECURE_20_%E2%80%9CSuper_Catch-Up%E2%80%9D) - [Age 55 — The Rule of 55](#Age_55_%E2%80%94_The_Rule_of_55) - [Age 59½ — The Main Unlock](#Age_59%C2%BD_%E2%80%94_The_Main_Unlock) - [Ages 62–70 — The Social Security Window](#Ages_62%E2%80%9370_%E2%80%94_The_Social_Security_Window) - [Ages 73 and 75 — Required Minimum Distributions (RMDs)](#Ages_73_and_75_%E2%80%94_Required_Minimum_Distributions_RMDs) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) ## Quick-Reference: Retirement Age Milestones for 2026 AgeWhat Happens50Catch-up contributions begin — 401(k) +$8,000/yr; IRA +$1,000/yr55Rule of 55 — penalty-free 401(k) withdrawals if you leave that employer59½Penalty-free withdrawals from all tax-advantaged accounts60–63Super catch-up — 401(k) catch-up rises to $11,250 (SECURE 2.0)62Earliest Social Security eligibility (at a 30% permanent reduction)65Medicare eligibility67Social Security full retirement age for everyone born 1960 or later70Maximum Social Security benefit — no gain from waiting beyond this73RMDs begin for those born 1951–195975RMDs begin for those born 1960+ (takes effect in 2033) ## Age 50 — Catch-Up Contributions Begin Once you hit 50, the IRS lets you contribute more than the standard annual limit to retirement accounts. For 2026, that means an extra $8,000 on top of the $24,500 base limit for a 401(k) or 403(b), and an extra $1,000 on top of the $7,500 base IRA limit. These don’t happen automatically — you have to actively elect them through your plan or broker. See the [2026 401(k) and catch-up contribution limits](https://savingtoinvest.com/maximum-employee-and-employer-401k-contribution-limits-and-catch-up-amounts/) for the full breakdown including employer matching and solo 401(k) limits. ## Ages 60–63 — The SECURE 2.0 “Super Catch-Up” Starting in 2025, SECURE 2.0 created a higher catch-up tier specifically for savers aged 60, 61, 62, and 63. Instead of the standard $8,000 catch-up, they can contribute up to **$11,250 extra** to a 401(k), 403(b), or governmental 457 plan. That brings the 2026 total to $35,750 for this group — $24,500 base + $11,250 catch-up. The window closes when you turn 64. At 64 you step back down to the $8,000 catch-up. So if you’re in your early 60s and haven’t maxed out contributions before, these are the years to do it. One wrinkle: some smaller plans haven’t implemented the super catch-up yet. Check with your HR or plan administrator to confirm it’s available before you change your deferral rate. ## Age 55 — The Rule of 55 If you leave an employer (quit, get laid off, or retire) in the calendar year you turn 55 or later, you can take penalty-free distributions from **that employer’s 401(k) plan** — no 10% early withdrawal penalty. You still owe income taxes on what you pull out. Two important limits: it only applies to the plan of the employer you left (not old 401(k)s from prior jobs), and it doesn’t apply to IRAs at all. If you roll that 401(k) into an IRA, you lose the Rule of 55 protection and are back to waiting for 59½. [Details on early withdrawal exceptions are here](https://savingtoinvest.com/how-to-withdraw-money-early-from-your-401k-or-ira-without-paying-a-penalty/). ## Age 59½ — The Main Unlock This is the age most people are waiting for. At 59½ you can withdraw from any tax-advantaged account — traditional 401(k), 403(b), traditional IRA, SEP IRA, SIMPLE IRA — without the 10% early withdrawal penalty. You still owe regular income taxes on every dollar you pull out of these pre-tax accounts. For **Roth IRAs**, there’s an additional condition: the account must have been open for at least five years (the “5-year rule”) before qualified distributions are tax-free. The clock starts on January 1 of the first year you made any Roth IRA contribution, regardless of which specific account it went into. So someone who opened their first Roth at 57 can take penalty-free but not tax-free withdrawals at 59½ — tax-free distributions start once the 5-year clock runs out. Roth 401(k) contributions follow the same 5-year rule. Details in the [Roth IRA contribution and conversion rules post](https://savingtoinvest.com/roth-ira-contribution-and-income-limits-plus-conversion-or-rollover-rules/). ## Ages 62–70 — The Social Security Window This is where the biggest lifetime dollar decisions live. The rules for everyone born 1960 or later: **Full Retirement Age (FRA) is 67.** That’s the baseline — what SSA considers your “normal” retirement benefit. **Claim before 67 and your benefit is permanently reduced:** Age at ClaimingPermanent Reduction vs. FRA62−30%63−25%64−20%65−13⅓%66−6⅔%670% (full benefit) **Delay past 67 and your benefit grows by 8% per year:** Age at ClaimingIncrease vs. FRA68+8%69+16%70+24% Waiting stops paying off after 70. There is no benefit to delaying past age 70 — the credits stop accruing and you’re just leaving money on the table. **Age 62** is also the year Medicare does NOT kick in — that’s 65, regardless of when you claim Social Security. Claiming SS early doesn’t get you Medicare early, and many people working past 65 delay Medicare enrollment because they have employer coverage. Don’t conflate the two. The “right” claiming age depends on your health, break-even horizon, spouse’s benefit, and income needs in your 60s. I’m not going to tell you the right answer here — the SSA’s own calculator at ssa.gov lets you run scenarios based on your actual earnings record, which is worth doing before you decide. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get updates as Social Security COLA and full retirement age rules change.* ## Ages 73 and 75 — Required Minimum Distributions (RMDs) This is where the post that existed here before was flat-out wrong, so paying attention matters. **The old rule was 70½. That hasn’t applied since 2020.** SECURE 2.0 (signed December 2022) updated it again: - **Born 1951–1959:** RMDs start at **age 73** - **Born 1960 or later:** RMDs start at **age 75** — but this doesn’t take effect until 2033, when the first 1960-birth cohort turns 73. Until then, even those born in 1960 are subject to the age-73 rule. RMDs apply to traditional 401(k)s, 403(b)s, traditional IRAs, SEP IRAs, and SIMPLE IRAs. **Roth IRAs are exempt** — there’s never been an RMD requirement on them while the original owner is alive. Starting in 2024, Roth 401(k)s are also exempt from RMDs, a change SECURE 2.0 made to align them with Roth IRAs. The first RMD can be delayed until April 1 of the year after you turn 73, but doing so means you’ll take two RMDs in year two — which can create a tax spike. Most people are better off taking the first RMD in the year they turn 73 to spread the income. **Missed RMD penalty:** Under SECURE 2.0, the penalty dropped from 50% to **25%** of the amount you failed to take. If you self-correct within the IRS’s two-year correction window, it drops further to **10%**. Still a painful mistake, but more recoverable than before. See the [full SECURE 2.0 RMD rules and changes post](https://savingtoinvest.com/coronavirus-stimulus-bill-allows-early-401k-or-ira-retirement-account-distributions/) for the complete picture including inherited IRA 10-year rules, which the IRS began enforcing in 2025. ## Common Issues to Watch Out For I get questions on these regularly, so worth flagging: **1. Confusing the Rule of 55 with age 59½.** The Rule of 55 is 401(k)-only, from the specific plan you left. Rolling to an IRA wipes it out. **2. Missing the Roth 5-year rule.** Age 59½ removes the penalty but not the taxes on earnings if the Roth account isn’t 5 years old yet. A lot of people assume “59½ = everything is tax-free” — that’s only true once both conditions are met. **3. Using the old 70½ RMD age.** This is the biggest active error I see. If you or someone advising you is still citing 70½, that’s two law changes behind. The current age is 73 (or 75 for those born 1960+, eventually). **4. Forgetting Roth 401(k) RMDs changed in 2024.** Pre-2024, Roth 401(k)s required RMDs even though Roth IRAs didn’t. That’s fixed now — no RMDs on either. But if someone rolled a Roth 401(k) to a Roth IRA, the 5-year clocks may differ. **5. Claiming Social Security without checking the spouse’s strategy.** If one spouse had significantly higher lifetime earnings, delaying their benefit to 70 can substantially increase the surviving spouse’s income for the rest of their life — sometimes by hundreds of dollars a month. ## Looking Ahead: 2027 Outlook The core age milestones are set in law and won’t change for 2027. What will update: - **Contribution limits** — the IRS adjusts 401(k) and IRA limits annually for inflation, typically announced in late October or November. I’ll update the dedicated contribution limit posts as soon as the 2027 figures drop. - **Social Security COLA** — announced each October, effective January. This shifts the actual dollar amounts but not the age math. - **RMD tables** — IRS life expectancy tables are fixed; no change expected for 2027. - **Super catch-up limit** — currently $11,250 for 2026; will be indexed upward in future years. I’ll track that in the catch-up contribution post. The age-75 RMD rule for the 1960+ birth cohort takes effect in 2033 — still seven years out, but worth knowing now if you’re doing long-range planning. --- Frequently Asked Questions QWhat is the penalty-free withdrawal age for a 401(k) and IRA in 2026? AThe standard penalty-free withdrawal age is 59½ for both 401(k)s and IRAs (traditional and Roth). Withdrawals before this age typically trigger a 10% early withdrawal penalty on top of regular income taxes - though exceptions exist for certain hardships, disability, substantially equal periodic payments (SEPP), and the Rule of 55 for 401(k)s. QWhat age do you have to start taking RMDs in 2026? AUnder SECURE 2.0, the required minimum distribution (RMD) start age is 73 for anyone born between 1951 and 1959. For those born in 1960 or later, the RMD age will increase to 75 - but that change doesn't take effect until 2033. If you're turning 73 in 2026, your first RMD is due by December 31, 2026 (or you can delay the first one to April 1, 2027, but then two RMDs would be due in 2027). QWhat is the full retirement age for Social Security in 2026? AFor anyone born in 1960 or later - which now includes everyone turning 62 through 66 in 2026 - the full retirement age (FRA) for Social Security is 67. Claiming at 62 results in a permanent 30% reduction. Delaying past 67 earns 8% per year in delayed retirement credits, up to a maximum at age 70. QWhat is the Rule of 55 for 401(k) withdrawals? AThe Rule of 55 allows penalty-free withdrawals from a 401(k) if you leave your employer (through retirement, layoff, or resignation) in the same calendar year you turn 55 or later. It only applies to the 401(k) plan of the employer you separated from - not IRAs and not old 401(k)s from prior jobs. Rolling the money into an IRA eliminates this option. QDo Roth IRAs require minimum distributions? ANo - Roth IRAs have never required RMDs while the original owner is alive. Starting in 2024, SECURE 2.0 also eliminated RMDs from Roth 401(k)s, aligning them with Roth IRAs. However, inherited Roth IRAs generally do require distributions under the 10-year rule (for non-spouse beneficiaries who inherited after 2019). QWhat is the SECURE 2.0 super catch-up contribution for ages 60-63? AUnder SECURE 2.0, savers aged 60, 61, 62, or 63 can make a higher catch-up contribution to their 401(k), 403(b), or governmental 457 plan. For 2026, this is $11,250 - versus the $8,000 that applies to those aged 50-59 or 64 and older. Combined with the $24,500 base limit, those in the 60-63 window can contribute up to $35,750 in 2026. The higher limit reverts to $8,000 at age 64. QCan you still contribute to an IRA after age 70½? AYes - the age limit on IRA contributions was removed by the original SECURE Act (2019). Both traditional and Roth IRA contributions can now be made at any age, as long as you have earned income. The old rule that barred traditional IRA contributions past 70½ no longer applies. **Categories:** Taxes and Retirement **Tags:** 401K, Age, distribution, IRA, retirement, Social Security --- ### [2026–2027 Updates: Can You Collect Unemployment While Working Part-Time? Partial UI Rules by State](https://savingtoinvest.com/can-i-get-unemployment-working-part-time-partial-weekly-unemployment-benefit-rules-by-state/) **Published:** May 18, 2020 **Author:** Andy **Content:** ### Key Takeaways - Every state allows partial unemployment - you can work part-time and still collect a reduced benefit, as long as your earnings stay below your state's weekly limit. - Most states protect the first 20-50% of your weekly benefit amount (WBA) as an earnings disregard - wages below that buffer don't reduce your check at all. - You must report gross earnings in the week you worked - not when you were paid. This is the most common mistake that triggers overpayment notices. - Gig work, freelance income, and tips all count as reportable earnings. Forgetting them is treated the same as intentional fraud. - Most states require you to keep actively searching for full-time work even while working part-time. Working part-time while on unemployment isn’t just allowed — it’s something most states actively want you to do. The alternative, where every shift you pick up wipes out your entire benefit, discourages work and makes a job search harder. States recognized that problem decades ago. In 2026, the rules work the same way they always have: take the part-time job, report what you earned, get a reduced check. The catch is that the formula varies a lot by state, and small reporting errors can turn a routine partial week into an overpayment case. Here’s how it actually works. Covered in this Article: [Toggle](#) - [How Partial Unemployment Benefits Work](#How_Partial_Unemployment_Benefits_Work) - [The Earnings Disregard — Your Weekly Buffer](#The_Earnings_Disregard_%E2%80%94_Your_Weekly_Buffer) - [Earnings Limit — Where Benefits Cut Off Entirely](#Earnings_Limit_%E2%80%94_Where_Benefits_Cut_Off_Entirely) - [State Earnings Disregard Rates — 2026](#State_Earnings_Disregard_Rates_%E2%80%94_2026) - [What Counts as Earnings — Report All of It](#What_Counts_as_Earnings_%E2%80%94_Report_All_of_It) - [Common Mistakes That Trigger Overpayments](#Common_Mistakes_That_Trigger_Overpayments) - [When Part-Time Work Makes Your Benefits Last Longer](#When_Part-Time_Work_Makes_Your_Benefits_Last_Longer) - [When Part-Time Work Crosses Into Full Employment](#When_Part-Time_Work_Crosses_Into_Full_Employment) - [2026 State UI Posts — Partial UI Rules Included](#2026_State_UI_Posts_%E2%80%94_Partial_UI_Rules_Included) - [Looking Ahead: 2027 Outlook](#Looking_Ahead_2027_Outlook) ## How Partial Unemployment Benefits Work The core structure is the same everywhere: 1. You file your weekly certification as normal. 2. You report **all gross earnings** from that week — even if you haven’t been paid yet. 3. The state applies your **earnings disregard** (the buffer they ignore before reducing your check). 4. Your benefit is reduced by your earnings above the disregard. 5. If your earnings exceed the state’s **earnings limit**, you get $0 for that week. What differs dramatically by state is how big the disregard is and where the limit sits. ## The Earnings Disregard — Your Weekly Buffer The earnings disregard is the portion of your weekly wages the state ignores before cutting your check. Think of it as a grace zone. States set it three ways: a **flat dollar amount** (rare, and usually small), a **percentage of your weekly benefit amount (WBA)**, or the **greater of** the two. The percentage-of-WBA approach is the most common. **Example with a 25% disregard:** Your WBA is $400. The disregard protects the first $100 (25% × $400). If you earn $80 from a part-time shift, your full $400 benefit is paid — you clear $480 that week. If you earn $200, the disregard shields $100, and the remaining $100 reduces your benefit to $300. You clear $500. You’re ahead by working. The key point most people miss: **working part-time almost always increases your total weekly income**, even after the benefit reduction. The disregard is specifically designed to make that math work out. ## Earnings Limit — Where Benefits Cut Off Entirely The earnings limit is the ceiling. Once your weekly earnings cross it, you receive nothing for that week. It’s typically set at 100–130% of your WBA. Using the same $400 WBA example: if the earnings limit is 120% ($480), earning $479 gets you a partial check. Earn $481 and you’re out for the week. Your state’s unemployment handbook will show the exact percentage — it’s worth knowing before you pick up extra hours. ## State Earnings Disregard Rates — 2026 Rules by state are set in statute and don’t change as frequently as benefit amounts. The table below covers key states and their current partial UI approach: StateEarnings DisregardNotesNorth Dakota60% of WBAMost generous in the countryVermont50% of WBAStrong disregard; high earner protectionWyoming50% of WBANo state income tax on UIMaine50% of WBAApplies to partial weeksNew Hampshire30% of WBANo state income taxPennsylvania30% of WBANo state income tax on UIUtah30% of WBACalifornia25% of WBA (min $25)Dollar-for-dollar above disregardNebraska25% of WBATexas25% of WBANo state income tax; then dollar-for-dollarWashington25% of WBAHighest max WBA in U.S. at $1,152/wkAlaska20% of WBAIndiana20% of WBAMissouri20% of WBAOhio20% of WBANew YorkHours-basedWork ≤30 hrs/earn below WBA → scaled reduction by hoursFlorida~$58 flatVery low disregard — 8× federal minimum wage New York uses a separate system: your benefit reduction is based on the number of hours you worked, not a straight earnings percentage. Work 0–10 hours and you keep your full benefit (assuming earnings are under your WBA). Work 11–30 hours and you get a scaled partial benefit. Work over 30 hours and you’re considered fully employed. For every other state not listed, your state’s unemployment agency website or benefits handbook will have the specific disregard formula. The [DOL’s CareerOneStop tool](https://www.careeronestop.org/LocalHelp/UnemploymentBenefits/find-unemployment-benefits.aspx) can point you to your state’s office. See the [full 2026 state-by-state maximum benefit comparison](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/) for WBA amounts by state, which you’ll need to calculate your specific earnings limit. ## What Counts as Earnings — Report All of It This is where most overpayment notices start. Earnings must be reported in the week **you worked**, not when you were paid. A shift on Wednesday must appear on this week’s claim even if the paycheck arrives next Friday. **What counts:** - Wages from any W-2 job (gross, before taxes) - Tips and commissions earned that week - Self-employment income (sales, freelance, consulting) - Gig platform earnings — rideshare, delivery, TaskRabbit, Upwork - Vacation pay or holiday pay assigned to that week - Bonuses tied to a specific work period **What typically doesn’t count** (but verify with your state): - Investment income, dividends, or interest - Child support or alimony received - Social Security or disability payments - Gifts or loans If you’re unsure about a specific payment, report it and let the state decide. Reporting something that doesn’t count rarely causes problems. Not reporting something that does can be treated as fraud — even if unintentional. *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) for updates as state rules change in 2026.* ## Common Mistakes That Trigger Overpayments I get a lot of questions about overpayment notices, and most of them trace back to the same handful of errors: **1. Reporting when you were paid instead of when you worked.** The most common mistake. Always report in the week the work happened. **2. Reporting net pay instead of gross.** Most states want gross wages — the number before taxes and deductions. Reporting your take-home pay understates earnings and will catch up with you in an audit. **3. Forgetting gig income.** If you drove for DoorDash, ran a freelance project, or did any 1099 work, it counts. A lot of overpayment cases are simply people who reported their W-2 job but left out their side gig. **4. Skipping the work search.** Most states still require you to actively apply for full-time work each week, even while working part-time. Not documenting your search doesn’t stop the requirement — it just means you can’t prove compliance if challenged. **5. Letting hours creep above 30.** Once you’re regularly working 32+ hours, most states consider you fully employed. Continuing to claim at that point can become a fraud issue. ## When Part-Time Work Makes Your Benefits Last Longer Here’s something worth knowing: in most states, a partial benefit week draws down your maximum benefit amount (MBA) more slowly than a full benefit week. If you’re entitled to 26 weeks of benefits at $500/week ($13,000 total), and a partial week pays you $250, you’ve used only $250 of your $13,000 — not a full week’s worth. Your runway extends. This is a real advantage if your job search is taking longer than expected. A few states count any benefit week — partial or not — as one full week against your maximum duration. Check your state’s rules before banking on the extended runway. ## When Part-Time Work Crosses Into Full Employment There’s a line where picking up hours disqualifies you from UI entirely. Watch for: - **Consistently working 32+ hours a week.** Most states define “full-time” at 32–40 hours. - **Earnings that consistently exceed the earnings limit.** Several weeks in a row above the cap often triggers an agency review. - **Declining suitable full-time offers.** Refusing a reasonable job offer while claiming UI can result in disqualification. - **Stopping your work search.** If your part-time job becomes your plan, you may no longer meet the “actively seeking full-time work” requirement. If your situation has changed and you’re no longer really unemployed, close the claim. Continuing to certify while functionally fully employed is the kind of thing that leads to overpayment demands and, in serious cases, fraud charges. ## 2026 State UI Posts — Partial UI Rules Included Each of the site’s 50 state unemployment guides covers that state’s partial UI rules, earnings disregard formula, and what counts as earnings locally. If you’re in a specific state, the state guide will give you more detail than the general rules above: Find your state’s guide via the [state comparison page](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/) — each row links to the individual state post. ## Looking Ahead: 2027 Outlook Earnings disregard percentages are set by state statute and don’t change often — but state legislatures do occasionally adjust them, usually as part of broader UI reform packages. Michigan, for example, increased its maximum weekly benefit substantially in 2026 and extended benefit duration. Virginia raised its maximum twice in 2026 under new legislation. For 2027, watch for states where unemployment trust funds have run high (suggesting room for more worker-friendly reforms) versus states still recovering from COVID-era depletion (which may tighten eligibility). I’ll flag any disregard changes in the state guides as they happen. The fundamental rule — report what you earned, in the week you earned it — will not change. --- Frequently Asked Questions QCan I collect unemployment while working part-time? AYes - every state allows partial unemployment benefits. You can work part-time and still receive a reduced weekly benefit as long as your earnings stay below your state's earnings limit (typically 100-130% of your weekly benefit amount). The state applies an earnings disregard - a buffer that protects a portion of your wages before any reduction kicks in. QHow much can I earn before my unemployment benefits are reduced? AIt depends on your state's earnings disregard. Most states protect 20-50% of your weekly benefit amount before reducing your check. For example, if your weekly benefit is $500 and your state has a 25% disregard, you can earn up to $125 without any reduction. Every dollar above that reduces your benefit dollar-for-dollar until you hit the earnings limit. QDo I have to report gig work and freelance income on my unemployment claim? AYes - all earned income must be reported, including rideshare, delivery, freelance, and 1099 income. It's reported in the week you worked, not the week you were paid. Failing to report gig income is the most common cause of overpayment notices and can be treated as fraud even if the error was unintentional. QWhen should I report my earnings - when I worked or when I got paid? AWhen you worked. This is the single most important rule in partial unemployment. If you work a shift on Wednesday, it goes on this week's claim - even if your paycheck doesn't arrive until next Friday. Reporting in the pay period instead of the work period is the most common mistake that creates overpayment cases. QDoes working part-time make my unemployment run out faster? AIn most states, no - it actually stretches your benefits further. A partial benefit week typically draws down your maximum benefit balance by only the partial amount paid, not a full week. So if working part-time cuts your weekly check from $500 to $250, you're using $250 of your total entitlement instead of $500, giving you more weeks of runway. Check your state's rules - a few states count any week of benefits (partial or full) as a full week against your duration limit. QDo I still have to look for full-time work while collecting partial unemployment? AYes in most states. Working part-time doesn't suspend your work search requirement. You're still expected to be 'able and available' for full-time employment and to actively apply each week. Document every application, call, and interview - you'll need records if your state audits your claim. QWhat happens if my part-time earnings exceed the earnings limit? AYou receive $0 in unemployment benefits for that week. A single week over the limit is fine - you simply don't certify a benefit for that week. But if your hours are consistently above the limit, the state may reclassify you as fully employed, which can trigger a review of your entire claim and potentially require you to repay benefits already received. **Categories:** Career and Relationships **Tags:** unemployment --- ### [2026–2027 Updates: Best Online Tax Filing Software and Free Filing Options](https://savingtoinvest.com/the-best-tax-software-and-free-filing-options-as-tax-filing-goes-primarily-online/) **Published:** January 18, 2011 **Author:** Andy **Content:** ### Key Takeaways - IRS Free File for tax year 2025 (returns filed in 2026): AGI of $89,000 or less qualifies - the highest limit ever, up $5,000 from last year. - TurboTax and H&R Block are NOT IRS Free File partners. They have their own free tiers for very simple returns, but those are separate from the IRS program. - TaxAct, FreeTaxUSA (TaxHawk), and TaxSlayer are among the 8 current IRS Free File partners at the $89,000 AGI threshold. - IRS Direct File was discontinued at the end of 2025 and is not available for the 2026 filing season. - VITA provides free in-person filing help for income generally up to about $67,000 - worth using if you qualify. - If you earned tips or overtime in 2025, confirm your chosen software supports Schedule 1-A (the new OBBBA deduction form) before you start. The IRS Free File AGI limit for 2026 is **$89,000** — the highest it’s ever been. If your adjusted gross income lands at or below that number, free guided filing is available through 8 partner software companies. Above it, you’re paying. Here’s what’s worth using this year and what’s changed. Covered in this Article: [Toggle](#) - [What’s New for 2026](#Whats_New_for_2026) - [Paid Tax Software](#Paid_Tax_Software) - [TurboTax](#TurboTax) - [H&R Block](#H_R_Block) - [TaxAct](#TaxAct) - [FreeTaxUSA (TaxHawk)](#FreeTaxUSA_TaxHawk) - [IRS Free File: The 8 Current Partners](#IRS_Free_File_The_8_Current_Partners) - [VITA and Other Free Options](#VITA_and_Other_Free_Options) - [Cryptocurrency](#Cryptocurrency) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027](#Looking_Ahead_2027) ## What’s New for 2026 Two things are meaningfully different from prior seasons. **IRS Direct File is gone.** The government’s own free filing pilot, launched in 2024, was discontinued at the end of 2025. Low participation (under 0.5% of filers) and a $138 per-return cost ended it. If you used Direct File before, you’ll need to switch to a Free File partner or paid software. **The Free File AGI limit jumped to $89,000** — up $5,000 from last year. That’s a meaningful expansion. But TurboTax and H&R Block are still not part of the program, so starting at their sites takes you directly to paid products, not Free File. Also new: the One Big Beautiful Bill Act (OBBBA) added four above-the-line deductions — tips, overtime, auto loan interest, and a senior bonus — all reported on the new Schedule 1-A. Most major software has updated for this, but it’s worth confirming before you start if any of these apply to you. ## Paid Tax Software ### TurboTax TurboTax is still the most polished experience for most filers. The step-by-step interface handles everything from a simple W-2 return to self-employment income, investments, rental property, and the new OBBBA deductions. Their calculation accuracy guarantee — where they cover any IRS penalty caused by a software math error — is a legitimate differentiator. The downside is price. TurboTax is the most expensive mainstream option, and their upsell flow is aggressive. If your return is straightforward, you’re likely overpaying. TurboTax has its own free tier for very simple returns (W-2 only, no schedules). That’s their product — not IRS Free File. ### H&R Block H&R Block’s software has improved a lot in recent years. The interface is cleaner, guidance is solid, and the free audit support from enrolled agents is genuinely useful. They’re typically priced below TurboTax for comparable tiers. Their in-person office network is also a real advantage if you want the option of walking in somewhere with a question — TurboTax doesn’t offer that. H&R Block also has their own free tier for simple returns. Like TurboTax, it’s separate from IRS Free File — they exited the program in 2022. ### TaxAct TaxAct is a strong middle-ground option: full-featured software at meaningfully lower cost than the big two. They handle most return types well, including OBBBA deductions. The Xpert Help feature adds access to tax professionals when you get stuck. TaxAct is also one of the 8 current **IRS Free File partners** — so if your AGI is $89,000 or below, you may be able to use TaxAct through the IRS portal at no cost for your federal return. State filing costs extra through any route. ### FreeTaxUSA (TaxHawk) This one flies under the radar but it’s one of the best values out there. Federal filing is free for everyone — no income limit — and state costs $15. FreeTaxUSA is also an IRS Free File partner for the $89,000 threshold. The interface is less polished than TurboTax, but it handles a solid range of return types and has strong reviews. For anyone who wants free federal filing without jumping through AGI hoops, this is where I’d point first. *Things can shift between now and the next filing season. I’ll update this page when new information comes in — [subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/).* ## IRS Free File: The 8 Current Partners If your AGI is $89,000 or below, always start at [irs.gov/freefile](https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free) — not at any software company’s homepage. Each partner sets its own eligibility rules beyond income (age, state, supported forms), so you may not qualify for every partner even if you’re under the threshold. ProviderNotes1040NowBasic federal filingDrake (1040.com)Professional-grade software, now consumer-facingezTaxReturn.comSimple interface, limited state supportFileYourTaxes.comBroad state coverageOn-Line TaxesLong-running Free File partnerTaxActFull-featured; state filing costs extraTaxHawk (FreeTaxUSA)Free federal, $15 state; strong reputationTaxSlayerGood for self-employed and OBBBA deductions TurboTax is not on this list. H&R Block is not on this list. If you see either name on a “free filing” page, you’re using their own product — which may have hidden upgrade costs for anything beyond the simplest returns. For a full breakdown of all free options including VITA and Free File Fillable Forms, see: [How to File Your Federal Taxes for Free in 2026](https://savingtoinvest.com/filing-your-taxes-for-free-online-irs/). ## VITA and Other Free Options If your income is generally below about $67,000, **VITA (Volunteer Income Tax Assistance)** is worth looking into. IRS-certified volunteers prepare your return in person at no cost — typically at libraries, community centers, and churches. Call 1-800-906-9887 or search “VITA near me” to find a site. **AARP Tax-Aide** serves anyone 50 or older regardless of income, with a focus on retirement tax issues. **Free File Fillable Forms** are available to anyone at any income level — no guided software, just the IRS forms online. For people who know exactly what they’re doing and just want to file electronically at no cost. ## Cryptocurrency Crypto is still fully taxable. Every sale, swap, or purchase using crypto is a taxable event — you need accurate cost basis records. The IRS has been increasing enforcement here, and the new [1099-DA form](https://savingtoinvest.com/understanding-the-new-crypto-1099-da-reporting-form/) from brokers and exchanges is making that tracking more automated. TurboTax handles crypto best for most people, with direct exchange integrations. TaxAct is also solid. For very high transaction volumes, a crypto-specific tax tool that exports into your main software may be cleaner — but for the majority of filers, TurboTax or TaxAct handles it fine. ## Common Issues to Watch Out For The most common mistake I see: starting at turbotax.com or hrblock.com and assuming you’re getting IRS Free File. You’re not. Always go through irs.gov/freefile if you want the actual program. Second: OBBBA deductions. If you earned tips or significant overtime in 2025, check that your software supports Schedule 1-A before you enter your information. Some Free File partners added full support later in the season. TaxSlayer and TaxAct are generally ahead here. Third: state filing is always separate. IRS Free File only covers your federal return. State filing costs extra at most providers — FreeTaxUSA at $15/state is one of the more affordable options. Finally: don’t wait until April 15. Software queues and customer support get overwhelmed in the final weeks. Filing in February or early March gets you a faster refund and far less frustration. Check our [IRS refund schedule](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) for processing time estimates once you’ve filed. ## Looking Ahead: 2027 The Free File AGI limit has risen every year for the past several years. I’d expect another increase for the 2027 season (covering 2026 income) — possibly to $90,000–$92,000 — though the IRS typically announces it in October or November 2026 alongside the filing calendar. The bigger wildcard is the Free File partner list. The alliance has been stable at 8 partners since H&R Block’s exit in 2022, but any departures or additions would change what’s available. I’ll update this page when that’s confirmed. For OBBBA: tips, overtime, auto loan, and senior deductions apply through the 2028 tax year, so software providers will continue refining Schedule 1-A support over the next few cycles. Frequently Asked Questions QWhat is the IRS Free File AGI income limit for 2026? AThe AGI limit for IRS Free File is $89,000 for tax year 2025 (returns filed in 2026). That's the highest it's ever been - up $5,000 from the prior year. If your income is at or below that threshold, you can use one of the 8 Free File partner products for free federal filing. QIs TurboTax part of IRS Free File in 2026? ANo. TurboTax exited the IRS Free File program in 2021. They have their own free tier for very simple returns (W-2 only), but that's a separate TurboTax product - not the IRS Free File program. To access Free File, start at irs.gov/freefile. QIs H&R Block part of IRS Free File in 2026? ANo. H&R Block exited the IRS Free File program in 2022. They have their own free tier for basic returns, but it's not IRS Free File. Use irs.gov/freefile to reach the 8 current partners. QWhat happened to IRS Direct File in 2026? AIRS Direct File was discontinued at the end of 2025. Low participation and high per-return costs ended the program. For the 2026 filing season, the closest alternative is FreeTaxUSA (TaxHawk) - clean interface, free federal filing, and strong support for most return types. QWhich tax software handles the OBBBA tips and overtime deductions? AMost major software updated for Schedule 1-A, the new OBBBA deduction form covering tips, overtime, auto loan interest, and the senior bonus deduction. TaxSlayer and TaxAct are generally ahead among Free File partners. TurboTax handles it well for paid users. Confirm before you start if you have significant tip or overtime income. QWhat is the best free tax software for 2026? AFor most filers at or below $89,000 AGI, I'd start with FreeTaxUSA (TaxHawk) - free federal filing regardless of income, $15 for state, and solid coverage of most return types. TaxAct is also a strong Free File partner if you need more features. For in-person free help at income up to about $67,000, VITA is worth finding. **Categories:** Taxes and Retirement **Tags:** Complete Tax, HR Block, taxes, TurboTax --- ### [2026–2027 Child Tax Credit: OBBBA Raises It to $2,200 Per Child — Full Eligibility Guide](https://savingtoinvest.com/3600-expanded-child-tax-credit-on-top-of-1400-dependent-stimulus-check-for-5k-in-2021-biden-stimulus-package/) **Published:** February 10, 2021 **Author:** Andy **Content:** ### Key Takeaways - The One Big Beautiful Bill Act (OBBBA) permanently increased the Child Tax Credit (CTC) from $2,000 to $2,200 per qualifying child - and adjusts for inflation annually going forward. - The refundable portion (Additional Child Tax Credit) also rises to $1,700 per child. - Income phase-out: credit reduces by 5% of AGI above $200,000 (single) / $400,000 (joint). These thresholds are also permanently set by the OBBBA. - Both the child and the taxpayer must have valid Social Security numbers. For married joint filers, at least one parent must have an SSN. - Child must be under age 17 on December 31 of the tax year, a U.S. citizen/national/resident, and claimed as your dependent. - Unlike the other OBBBA deductions, the $2,200 CTC is permanent - not expiring in 2028. If you have kids under 17, here’s the OBBBA update that matters to you: the Child Tax Credit just went up to **$2,200 per child**, permanently. That’s $200 more per child than the 2017 TCJA rate, and the credit will now adjust for inflation annually — meaning it should keep up with rising costs going forward. For a family with three kids, that’s $6,600 total, with up to $5,100 potentially refundable. Here’s the complete picture on eligibility and how to claim it. *Part of our [OBBBA Tax Guide series](https://savingtoinvest.com/reconciling-trumps-big-beautiful-bill-bbb/) — all OBBBA provisions in one place.* Covered in this Article: [Toggle](#) - [What Changed With the OBBBA](#What_Changed_With_the_OBBBA) - [Who Qualifies](#Who_Qualifies) - [Income Phase-Out](#Income_Phase-Out) - [The Refundable Portion: Getting Money Back Even If You Owe Nothing](#The_Refundable_Portion_Getting_Money_Back_Even_If_You_Owe_Nothing) - [Real Examples](#Real_Examples) - [Custody Situations: The “Other Parent” Rule](#Custody_Situations_The_%E2%80%9COther_Parent%E2%80%9D_Rule) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027 and 2028](#Looking_Ahead_2027_and_2028) ## What Changed With the OBBBA Before the OBBBA, the CTC was $2,000 per child — a rate from the 2017 TCJA that was set to expire. The OBBBA made it permanent and bumped the amount: Pre-OBBBAOBBBA (2026 onward)CTC per child$2,000$2,200Refundable portion (ACTC)$1,700$1,700Indexed for inflationNoYes (annually)Income phase-out (single)$200,000$200,000Income phase-out (joint)$400,000$400,000Expiration2025 (would have reverted to $1,000)Permanent The biggest win for most families isn’t the $200 increase — it’s that the credit is now permanent and will grow with inflation. Without the OBBBA, the credit would have dropped back to $1,000 per child. ## Who Qualifies **The child must:** - Be under age 17 on December 31 of the tax year (not 17 on or before that date) - Be your dependent (son, daughter, stepchild, foster child, sibling, or descendant of any of these) - Have lived with you for more than half the year - Have a valid Social Security number - Not have provided more than half their own support **The taxpayer must:** - Have a valid Social Security number (for married joint filers, at least one parent must have an SSN) - Have earned income greater than $2,500 (to claim the refundable ACTC portion) - Not be claimed as a dependent on someone else’s return ## Income Phase-Out The CTC starts reducing when your Adjusted Gross Income (AGI) exceeds: - **$200,000** for single filers / head of household - **$400,000** for married filing jointly The reduction rate: **5% of AGI above the threshold**, or $50 per $1,000 over. At $210,000 (single with two kids), the credit reduces by $500 — from $4,400 to $3,900. The credit can reduce to zero if income is high enough. At $244,000 single with two kids (2 × $2,200 = $4,400 ÷ $50 = 88 × $1,000 = $88,000 above threshold + $200,000 = $288,000 approximate zero-out), most filers with more moderate incomes aren’t affected. ## The Refundable Portion: Getting Money Back Even If You Owe Nothing The **Additional Child Tax Credit (ACTC)** is the refundable portion — meaning you can get up to $1,700 per child as a refund even if you owe no federal income tax. To qualify for the refundable portion, you must have earned income above **$2,500**. The refundable amount is 15% of earned income above $2,500, up to the $1,700 per-child cap. **Example — A Family of Three on Modest Income:** Maria is a single mother of two children (ages 8 and 12). Her earned income: $28,000. AGI: $28,000 (under $200,000 phase-out). - CTC available: 2 × $2,200 = $4,400 - Federal tax owed before credits: approximately $1,800 (12% bracket after standard deduction) - Non-refundable portion: reduces tax to $0 ($1,800 used) - Remaining credit: $4,400 − $1,800 = $2,600 - Refundable ACTC: 15% × ($28,000 − $2,500) = 15% × $25,500 = $3,825, capped at 2 × $1,700 = $3,400 - **Maria gets $3,400 back as a refund**, even though she owed only $1,800 in tax. ## Real Examples **Example 1 — The Chen Family (Standard Case)** Tom and Linda Chen, married filing jointly, earn $95,000 combined. Two kids (ages 7 and 10). AGI well under $400,000 phase-out. - CTC: 2 × $2,200 = **$4,400** - Federal tax owed: approximately $6,800 - After CTC: $2,400 owed - Compared to pre-OBBBA ($2,000/child): they save an extra $400 vs. the old rate, and $2,800 vs. the pre-TCJA rate of $1,000/child. **Example 2 — High-Income Phase-Out** David and Sarah earn $420,000 combined. Two kids. Phase-out: ($420,000 − $400,000) × 5% = $1,000 reduction. Available CTC: $4,400 − $1,000 = **$3,400**. **Example 3 — The Gonzalez Family (Refundable Portion)** Two parents, two kids, combined income $35,000. Tax owed: roughly $0 after standard deduction and bracket structure. - CTC available: $4,400 - ACTC: 15% × ($35,000 − $2,500) = $4,875, but capped at $3,400 (2 × $1,700) - **Refund check: $3,400** ## Custody Situations: The “Other Parent” Rule If you share custody, only one parent can claim the child in a given year. IRS rules generally give the credit to the custodial parent (the one with whom the child lived more than half the year). Divorced or separated parents can use Form 8332 to transfer the credit to the non-custodial parent for specific years. The OBBBA didn’t change these custody rules — they work the same as before. ## Common Issues to Watch Out For The SSN requirement is strict — and it’s for both the child and the parent. If your child doesn’t have an SSN by the due date of the tax return (including extensions), you can’t claim the credit. ITINs don’t count for children. Adoption situations: a child with an Adoption Taxpayer Identification Number (ATIN) can qualify until the adoption is finalized and an SSN is issued. Filing separately while married — you can claim the CTC on separate returns, but the income threshold drops and you lose access to some related credits. Run the math both ways. Don’t miss claiming the ACTC if your tax liability is low. Some filers leave refund money on the table by not completing the Schedule 8812 for the refundable portion. ## Looking Ahead: 2027 and 2028 The $2,200 CTC will adjust for inflation starting in 2026. Based on current inflation trajectories (CPI running around 3–4%), the 2027 credit may land around **$2,250–$2,280 per child**, with the exact amount to be announced by the IRS in late 2026. The phase-out thresholds ($200,000/$400,000) are also expected to adjust for inflation, though at a potentially different rate than the credit amount itself. I’ll update this page as the IRS releases 2027 inflation adjustments. Things can shift — I’ll post updates when 2027 figures are confirmed. [Subscribe here to get notified](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). *Also see: [2026–2027 IRS Refund Schedule](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) — families claiming the ACTC typically see refunds arrive in late February/early March due to PATH Act processing holds.* Frequently Asked Questions QHow much is the Child Tax Credit in 2026? AThe OBBBA raised the Child Tax Credit to $2,200 per qualifying child under age 17 for 2025 forward, indexed for inflation annually. The refundable Additional Child Tax Credit (ACTC) is up to $1,700 per child. Both are permanent under current law. QWhat is the income limit for the Child Tax Credit in 2026? AThe credit phases out at 5% of AGI above $200,000 for single filers and $400,000 for married filing jointly ($50 reduction per $1,000 over the threshold). These thresholds were made permanent by the OBBBA and may also adjust for inflation over time. QCan I get a Child Tax Credit refund even if I owe no taxes? AYes - through the Additional Child Tax Credit (ACTC), which is the refundable portion. If your CTC exceeds your tax liability, you can receive up to $1,700 per child as a refund, provided your earned income exceeds $2,500. Complete Schedule 8812 to claim it. QDoes my child need a Social Security number for the Child Tax Credit? AYes. The child must have a valid Social Security number (not an ITIN) by the due date of your tax return including extensions. The taxpayer claiming the credit must also have an SSN; for joint filers, at least one parent needs an SSN. QWhen does the $2,200 Child Tax Credit expire? AUnlike the OBBBA's other deductions (tips, overtime, auto loan, senior bonus - all expire 2028), the $2,200 CTC is permanent. It does not have a sunset date under current law. QWhat's the difference between the Child Tax Credit and the Additional Child Tax Credit? AThe CTC (up to $2,200/child) first offsets taxes you owe. If the credit exceeds your tax bill, the remaining amount - up to $1,700/child - becomes the refundable Additional Child Tax Credit (ACTC), which you receive as a refund check even if you owe nothing. **Categories:** Government Rebates and Payments --- ### [2026–2027 Auto Loan Interest Tax Deduction: New Cars, Made in America, Up to $10,000](https://savingtoinvest.com/understanding-the-auto-interest-tax-deduction-for-new-cars-between-2025-to-2028/) **Published:** July 31, 2025 **Author:** Andy **Content:** ### Key Takeaways - You can deduct up to $10,000 per year in interest paid on a loan for a qualifying new vehicle purchased January 1, 2025 or later - through 2028. - The vehicle must be new (you are the first owner), assembled in the United States (confirmed by VIN), and used for personal use only. - Business-use vehicles do not qualify for this individual deduction (business owners have separate depreciation options). - Income limits: phase-out begins at $100,000 MAGI (single) / $200,000 (joint); fully phases out at $150,000 (single) / $250,000 (joint). - This is an above-the-line deduction - claimable whether you itemize or take the standard deduction. - The deduction is temporary: 2025 through 2028 tax years only. - You need your Vehicle Identification Number (VIN) and an annual interest statement from your lender to claim this. When you’re staring at a new car loan at 6–8% interest, the monthly payment can sting. The One Big Beautiful Bill Act (OBBBA) gives you a way to take some of that sting back: a federal income tax deduction on the interest you pay, up to **$10,000 per year**, for new American-made vehicles financed on or after January 1, 2025. Over four years (2025–2028), that’s up to $40,000 in potential deductions — enough to meaningfully reduce the true cost of a qualifying car purchase for millions of Americans. Here’s exactly how it works. *Part of our [OBBBA Tax Guide series](https://savingtoinvest.com/reconciling-trumps-big-beautiful-bill-bbb/) — see all OBBBA deductions in one place.* Covered in this Article: [Toggle](#) - [The Key Requirements](#The_Key_Requirements) - [Income Limits](#Income_Limits) - [Real Examples](#Real_Examples) - [What About Refinancing?](#What_About_Refinancing) - [The VIN and Documentation](#The_VIN_and_Documentation) - [Stacking With Other Incentives](#Stacking_With_Other_Incentives) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027 and 2028](#Looking_Ahead_2027_and_2028) ## The Key Requirements There are four things your vehicle purchase needs to satisfy: **1. New vehicle — you are the first owner.** Used cars, certified pre-owned, and fleet vehicles don’t qualify. This means no private party purchases of “new” stock either — you need to be the original owner. **2. Final assembly in the United States.** The car’s VIN must verify U.S. final assembly. You don’t have to figure this out manually — your lender is required to report VIN information to the IRS. Eligible brands include many Ford, Chevy, GMC, Ram, Chrysler, Jeep, Toyota (US-assembled), Honda (US-assembled), and Tesla models among others. German and Korean imports assembled abroad generally don’t qualify even if the brand is familiar. **3. Personal use only.** If you use the vehicle for business, that portion is excluded. A car used 80% for personal travel and 20% for business can only apply 80% of the interest toward this deduction. **4. Loan originated on or after January 1, 2025.** Cars purchased before that date don’t qualify, even if you still have the loan. ## Income Limits MAGISingle FilerMarried Filing JointlyUnder $100,000Full deduction (up to $10,000)Full deduction$100,000–$150,000Phases outN/A$100,000–$200,000 (joint)N/APhases outAbove $150,000$0N/AAbove $250,000N/A$0 The phase-out is proportional. At $125,000 (single), you’ve used 50% of the phase-out range ($25,000 of $50,000 range), so your deduction caps at $5,000. At exactly $150,000, the deduction is $0. ## Real Examples **Example 1 — Kevin, First-Time New Car Buyer** Kevin buys a new Ford F-150 assembled in Kentucky for $45,000. He finances $38,000 at 7.5% APR over 60 months. - Year 1 interest paid: approximately $2,740 - Kevin’s MAGI: $72,000 (under $100,000 threshold) - **Full $2,740 deductible** - At 22% bracket: **$603 in tax savings** Kevin does this for 4 years. By 2028, he’s deducted roughly $9,100 in total interest (interest decreases as the loan amortizes). Total savings over the deduction period: about $2,000 in federal income tax. **Example 2 — Sandra, Larger Loan (High Interest Environment)** Sandra finances a new Chevy Suburban at $58,000 at 8.0% APR over 72 months. - Year 1 interest: approximately $4,500 - Year 2 interest: approximately $4,200 - MAGI: $95,000 - Both years: **full deduction available** - Combined two-year savings at 22%: approximately **$1,914** **Example 3 — Tom and Linda, Joint Filers (Mid-Range Income)** Tom and Linda buy a new Toyota Camry assembled in Kentucky, financing $30,000 at 6.5%. - Year 1 interest: approximately $1,880 - MAGI: $175,000 (within the $200,000 joint phase-out range) - Phase-out: $175,000 − $200,000 threshold… wait, they’re under $200,000 — full deduction. - **$1,880 deductible** - At 22% bracket: **$414 in savings** **Example 4 — High-Income Buyer Partially Phased Out** Single filer, MAGI $130,000, buys new American-made SUV. Interest in year 1: $3,200. Phase-out: $130,000 − $100,000 = $30,000 over threshold. Phase-out range is $50,000. Fraction phased out: 30/50 = 60%. Available deduction: 40% of $3,200 = **$1,280**. At 24% bracket: **$307 in savings**. Less than the full case, but still real money. ## What About Refinancing? If you refinance your qualifying new car, the interest on the refinanced amount generally remains eligible. The key is that the vehicle itself still qualifies — it’s still new, still American-assembled, still used personally. The refinance doesn’t reset the clock or create new disqualification. Your new lender takes over the reporting obligation and will provide an updated interest statement for tax purposes. ## The VIN and Documentation You’ll need two things to claim this on Schedule 1-A: 1. **Your Vehicle Identification Number (VIN)** — on your registration, loan documents, and the door jamb of your vehicle 2. **Annual interest statement from your lender** — lenders are required to send this by January 31 each year (similar to a 1098 for mortgage interest) The IRS uses the VIN to verify U.S. final assembly. If your VIN doesn’t confirm U.S. assembly, your deduction will be disallowed. Check before you buy — the National Highway Traffic Safety Administration (NHTSA) VIN decoder at [NHTSA.gov](https://vpic.nhtsa.dot.gov/decoder/) shows assembly location. ## Stacking With Other Incentives The OBBBA eliminated the federal EV tax credit after September 30, 2025. If you bought a qualifying EV before that date, you could have stacked the EV credit with this auto loan interest deduction. That window is now closed. Going forward, the auto loan interest deduction stands alone. It applies equally to gasoline, hybrid, and any EV model that meets the U.S.-assembly requirement — the OBBBA doesn’t exclude EVs from the interest deduction, it just ended the separate EV purchase credit. I’ll update this page if Congress modifies the rules — [subscribe here to stay current](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/). ## Common Issues to Watch Out For The most common mistake: assuming any car loan qualifies. The “Made in America” requirement catches people off guard. Several popular foreign brands have U.S. assembly plants — check the VIN before assuming you’re in or out. Second: deducting interest on a used vehicle. The law is explicit — first owner, new vehicle only. There’s no workaround here. Third: deducting business-use interest. If you use your car for both personal and business, you need to prorate. Business vehicle interest goes through different rules (depreciation, Section 179) and not through Schedule 1-A. ## Looking Ahead: 2027 and 2028 The deduction runs through 2028. If you’re considering a new car purchase in 2026 or 2027, the deduction is still available — and auto loan interest rates have been running high, making the deduction more valuable. By 2028, you’ll have claimed several years of interest deductions. If you took a 5-year loan in 2025, your 2028 deduction will be smaller (later-year payments are more principal than interest), but it still counts. One thing worth watching: whether Congress extends this beyond 2028 as part of any future tax package. The “Made in America” angle makes it politically attractive regardless of which party controls Congress. *Also see: [2026–2027 IRS Tax Brackets](https://savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/) — calculate exactly how much this deduction saves you at your rate.* Frequently Asked Questions QWhat vehicles qualify for the auto loan interest tax deduction? ANew vehicles (you are the first owner) with final assembly in the United States, used for personal purposes, financed with a loan originated on or after January 1, 2025. The vehicle must be a car, minivan, van, SUV, pickup truck, or motorcycle under 14,000 lbs GVWR. Check the VIN for U.S. assembly confirmation. QWhat is the maximum auto loan interest deduction? AUp to $10,000 per year in qualifying interest paid. The deduction applies for tax years 2025 through 2028. Income limits apply: phases out between $100,000-$150,000 MAGI for single filers, and $200,000-$250,000 for joint filers. QDo used cars qualify for the auto loan interest deduction? ANo. Only new vehicles where you are the original owner qualify. Used cars, certified pre-owned vehicles, and leased vehicles do not qualify for this deduction. QHow do I know if my car qualifies based on where it was assembled? ACheck your VIN at the NHTSA VIN decoder (vpic.nhtsa.dot.gov) or ask your dealer. U.S. final assembly is required. Your lender is also required to report VIN information to the IRS as part of their interest reporting obligations. QCan I deduct auto loan interest if I use the car for business? AOnly the personal-use portion of the interest qualifies. If you use the vehicle 70% personally and 30% for business, 70% of the interest is eligible for this deduction. Business-use interest is handled through separate business deduction rules. QWhat happens to this deduction when I refinance my car? AThe interest on a refinanced qualifying vehicle generally remains eligible. The vehicle still needs to meet all the original qualifications. Your new lender takes over the IRS interest reporting obligation. **Categories:** Taxes and Retirement --- ### [2026–2027 Catch-Up Contribution Limits: 401k, IRA, SIMPLE — Super Catch-Up and Roth Mandate Explained](https://savingtoinvest.com/when-can-i-make-catch-up-contributions-to-401k-ira-403b-and-simple-ira-retirement-plans/) **Published:** February 13, 2012 **Author:** Andy **Content:** ### Key Takeaways - The standard 401k catch-up limit for workers 50+ is $8,000 in 2026 (up from $7,500 in 2025), bringing the total max to $32,500 - SECURE 2.0's 'super catch-up' gives workers ages 60, 61, 62, and 63 a higher limit of $11,250 - bringing their total 401k max to $35,750 - The IRA catch-up is now $1,100 in 2026 (up from $1,000), as SECURE 2.0 made it inflation-indexed for the first time - Starting 2026, workers who earned more than $150,000 from their employer in 2025 must make all catch-up contributions as Roth (after-tax) - SIMPLE IRA catch-up for 50+ is $4,000 in 2026; ages 60-63 get a $5,250 super catch-up instead - The super catch-up applies only to the four ages 60-63 - it doesn't extend to 64 and older, who revert to the standard $8,000 limit Two major SECURE 2.0 changes took effect in 2026 that most people haven’t fully absorbed yet. If you’re between 60 and 63, your 401k catch-up limit jumped to **$11,250** — significantly more than the $8,000 available to other workers over 50. And if you earned more than $150,000 last year, your catch-up contributions must now go into a **[Roth account](https://savingtoinvest.com/traditional-ira-versus-roth-ira-contribution-and-phase-out-income-limits/)**, not pre-tax. Both rules were delayed for years while employers updated their systems, but 2026 is the year they’re actually live. Covered in this Article: [Toggle](#) - [2026 Catch-Up Contribution Limits — All Plans](#2026_Catch-Up_Contribution_Limits_%E2%80%94_All_Plans) - [The Super Catch-Up: Ages 60–63 Only](#The_Super_Catch-Up_Ages_60%E2%80%9363_Only) - [The Roth Catch-Up Mandate for High Earners](#The_Roth_Catch-Up_Mandate_for_High_Earners) - [Looking Ahead: 2027 Catch-Up Contribution Projections](#Looking_Ahead_2027_Catch-Up_Contribution_Projections) - [401k, 403b, 457, and TSP Catch-Up: Year-by-Year](#401k_403b_457_and_TSP_Catch-Up_Year-by-Year) - [IRA Catch-Up: Now Inflation-Indexed](#IRA_Catch-Up_Now_Inflation-Indexed) - [SIMPLE IRA Catch-Up](#SIMPLE_IRA_Catch-Up) - [403(b) Special Provision: 15-Year Rule](#403b_Special_Provision_15-Year_Rule) - [Two Examples](#Two_Examples) - [Common Issues to Watch For](#Common_Issues_to_Watch_For) ## 2026 Catch-Up Contribution Limits — All Plans PlanBase Limit (2026)Standard Catch-Up (50+)Super Catch-Up (60–63)Max Total (60–63)401(k), 403(b), 457(b), TSP$24,500+$8,000 = $32,500+$11,250 = $35,750$35,750SIMPLE IRA$17,000+$4,000 = $21,000+$5,250 = $22,250$22,250Traditional / Roth IRA$7,500+$1,100 = $8,600No super catch-up$8,600SEP-IRAUp to $70,000No catch-up allowedNo catch-up allowedN/A Source: [IRS Notice 2025-67](https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500) and [IRS Retirement Topics – Catch-Up Contributions](https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-catch-up-contributions). A note on the basic rule: you qualify for catch-up contributions in any year you turn 50 by December 31st. You don’t have to wait until your actual birthday — if you hit 50 at any point in the calendar year, you get the full catch-up amount for that year. --- ## The Super Catch-Up: Ages 60–63 Only This is the biggest change SECURE 2.0 brought to catch-up contributions, and it’s one I think will genuinely move the needle for a lot of people in their early 60s who feel behind on retirement savings. Starting in 2025 (and continuing in 2026), workers who are 60, 61, 62, or 63 years old can contribute at a higher catch-up rate to their [401k, 403b, 457, or TSP plan](https://savingtoinvest.com/taking-advantage-of-new-401k/). For 2026, that rate is **$11,250** — replacing the standard $8,000 catch-up for those ages. To be clear: this is the total catch-up amount, not an addition on top of the $8,000. Ages 50–59 and 64+ get the $8,000 catch-up. Ages 60–63 get $11,250 instead. Age Group2026 Total 401k MaxUnder 50$24,50050–59$32,500 ($24,500 + $8,000)60–63$35,750 ($24,500 + $11,250)64 and older$32,500 ($24,500 + $8,000) The super catch-up was designed specifically for the four-year window before the traditional early retirement age. SECURE 2.0 established it as the greater of $10,000 or 150% of the standard catch-up, indexed to inflation — which is how we get $11,250 in 2026 (150% × $7,500 from 2025, carried forward). One important caveat: **plan sponsors are not required to offer the super catch-up**. Most large employers with modern recordkeeping systems have adopted it, but if you’re at a smaller company or in an older plan, check with your HR or plan administrator. The limit only helps you if your plan has implemented it. --- ## The Roth Catch-Up Mandate for High Earners This rule is the one I hear the most confusion about, and it’s now fully active in 2026. If your wages from a single employer exceeded **$150,000 in 2025**, any catch-up contributions you make to that employer’s plan in 2026 must be designated as **Roth contributions** — meaning after-tax, not pre-tax. You can still make them, but you lose the upfront deduction. The $150,000 threshold is indexed to inflation each year. For 2026, the trigger is wages paid in the prior calendar year (2025) from the same employer whose plan you’re contributing to. If your employer’s plan doesn’t offer a Roth option, this creates a problem: technically, high earners whose wages exceeded the threshold can’t make catch-up contributions at all to that plan until the Roth feature is added. Most large plans already have Roth catch-up capability, but this is worth verifying if you earn above $150,000. For people below the $150,000 threshold, nothing changes — your catch-up contributions can still be pre-tax. *[Subscribe here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get notified when the IRS releases 2027 retirement contribution limits this fall.* --- ## Looking Ahead: 2027 Catch-Up Contribution Projections The IRS typically announces the following year’s retirement contribution limits in October or November, based on the third-quarter CPI reading. With inflation running around 3–4% through mid-2026, here’s what I expect for 2027 — with the caveat that these are projections, not official figures. The **standard 401k catch-up** has been $7,500 for two years before bumping to $8,000 in 2026. It adjusts in $500 increments, so the next increase would bring it to $8,500 — likely in 2027 if inflation holds. The **super catch-up (60–63)** is set at the greater of $10,000 or 150% of the regular catch-up, indexed to inflation. If the regular catch-up stays at $8,000, the super catch-up will also stay at $11,250 (150% × $7,500 base = $11,250, carried from 2025). But if the regular limit rises to $8,500 in 2027, the super catch-up could move to ~$11,750 (150% × $8,000 = $12,000, rounded down). The IRS announcement will clarify. The **IRA catch-up** adjusts in $100 increments. At $1,100 in 2026 and modest CPI, it’s likely to stay at $1,100 in 2027 — but a further increase to $1,200 is possible if the relevant CPI threshold is crossed. The **Roth mandate threshold** ($150,000 wages in prior year) is also indexed. Expect it to tick up slightly — perhaps to $155,000 or higher — though the exact figure depends on CPI. On the regulatory front, SECURE 2.0 provisions are now largely settled. The main wild card is IRS administrative guidance on edge cases in the Roth mandate (especially around multi-employer situations and plan corrections). I’ll update this page when the 2027 official limits are released — usually by late October. *[Subscribe here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get notified as soon as 2027 contribution limits are announced.* --- ## 401k, 403b, 457, and TSP Catch-Up: Year-by-Year YearStandard Limit (All)Catch-Up (50+)Super Catch-Up (60–63)Max (50–59 and 64+)Max (60–63)2026$24,500$8,000$11,250$32,500$35,7502025$23,500$7,500$11,250$31,000$34,7502024$23,000$7,500N/A$30,500$30,5002023$22,500$7,500N/A$30,000$30,0002022$20,500$6,500N/A$27,000$27,0002021$19,500$6,500N/A$26,000$26,000 The super catch-up was the same dollar amount in both 2025 and 2026 ($11,250). Going forward it’s indexed to inflation, so expect a small increase in 2027 when the IRS announces next year’s figures this fall. --- ## IRA Catch-Up: Now Inflation-Indexed For years, the IRA catch-up contribution was stuck at $1,000 — it wasn’t adjusted for inflation at all. SECURE 2.0 changed that, and 2026 is the first year we actually see it move: the IRA catch-up is now **$1,100**, bringing the [total IRA contribution limit](https://savingtoinvest.com/401k-ira-and-roth-ira-contribution-and-income-limits/) for those 50+ to **$8,600**. That’s a modest increase, but it’s the start of a new pattern. Expect the IRA catch-up to tick up gradually each year alongside regular inflation adjustments. There is no super catch-up for IRAs — the same $1,100 applies to all eligible individuals 50 and older, regardless of whether they’re 52 or 63. And the Roth mandate for high earners doesn’t apply to IRAs either, since Roth IRA eligibility is already governed by the separate income phase-out rules. IRA catch-up contributions follow the same deadline as regular IRA contributions: the tax filing deadline of the year they apply to, typically April 15th (not including extensions). --- ## SIMPLE IRA Catch-Up SIMPLE IRAs run on different limits than 401ks, and the catch-up structure is similarly distinct. The [SIMPLE IRA](https://savingtoinvest.com/simple-ira-contribution-and-income-limits-small-business-retirement-plans/) base contribution limit is **$17,000 in 2026** (standard plans) or **$18,100** for employers using the enhanced SIMPLE rules for certain plans. The catch-up for workers 50+ is **$4,000**, bringing the standard-plan total to $21,000. Workers ages 60–63 get the super catch-up here too: **$5,250** (replacing the $4,000), bringing their total to $22,250. One nuance I want to flag: salary reduction contributions to a SIMPLE IRA don’t count as catch-up contributions until they exceed $17,000 in 2026 (the standard limit). So the $4,000/$5,250 catch-up is available only after you’ve already hit that floor. --- ## 403(b) Special Provision: 15-Year Rule This one applies to a smaller group, but it’s meaningful if it applies to you. Employees with at least 15 years of service at a qualifying 403(b) employer — typically schools, hospitals, and nonprofits — may be eligible to make an additional catch-up contribution beyond the standard $8,000. The 15-year catch-up is calculated based on a formula using years of service and prior contributions, with a lifetime cap of $15,000. It applies before the standard age-50 catch-up — which means in some cases you can stack both if you’re 50+ with 15+ years. This is a complex area and the calculation varies by employer. If you’re in this situation, your HR department or plan administrator can run the numbers. --- ## Two Examples **Example 1 — Super catch-up in action:** Maria turns 62 in 2026 and earns $120,000. Her company offers a standard 401k with Roth option. Since she’s in the 60–63 window and her wages are under $150,000, she can contribute up to $24,500 (base) + $11,250 (super catch-up) = **$35,750 total**, pre-tax. That’s $3,250 more than she’d get if she were 64. **Example 2 — Roth mandate kicks in:** David is 55 and earns $210,000. His 2025 wages from his employer exceeded $150,000, so all of his 2026 catch-up contributions — $8,000 — must go into the Roth 401k rather than traditional pre-tax. He still gets the same dollar limit, but loses the immediate tax deduction on the $8,000. The silver side: those contributions grow and come out tax-free in retirement. --- ## Common Issues to Watch For **Assuming your plan offers the super catch-up.** SECURE 2.0 allows it, but plan sponsors aren’t required to implement it. Before you factor $35,750 into your contribution plan, confirm with your HR or benefits portal. **Getting the age window wrong.** The super catch-up applies only to ages 60, 61, 62, and 63. At 64, you’re back to the standard $8,000. I get questions about this a lot — people assume it keeps going, but the law is specific about the four-year window. **Forgetting the Roth mandate applies to the prior year’s wages.** The $150,000 threshold is based on what you earned from that employer in 2025, not what you expect to earn in 2026. Someone who got a big raise in 2025 and crossed the threshold may be surprised to find their 2026 catch-ups must be Roth. **Missing the IRA catch-up deadline.** Unlike 401k contributions (which must be made by December 31), IRA catch-up contributions can be made up to the tax filing deadline — April 15, 2027 for the 2026 tax year. There’s no extension granted even if you file for an extension. **Treating SEP-IRA catch-up the same as other plans.** [SEP-IRAs](https://savingtoinvest.com/sep-ira-rules-and-contribution-limits/) do not allow catch-up contributions of any kind. The contribution is based entirely on a percentage of compensation (up to $70,000 in 2026), and there’s no age-based add-on. This surprises a lot of self-employed people who are used to the 401k rules. --- Frequently Asked Questions QWhat is the 401k catch-up contribution limit for 2026? AThe standard catch-up contribution limit for workers age 50 and older in 401k, 403b, 457, and TSP plans is $8,000 in 2026, up from $7,500 in 2025. Combined with the base $24,500 limit, most workers 50+ can contribute up to $32,500 total. QWhat is the super catch-up for ages 60-63 in 2026? AWorkers who are 60, 61, 62, or 63 years old in 2026 can contribute up to $11,250 as their catch-up amount - replacing the standard $8,000 for those ages. Combined with the $24,500 base limit, ages 60-63 can contribute up to $35,750 to their 401k in 2026. This higher limit was introduced by SECURE 2.0 and applies only to those four specific ages. QWhat is the new Roth catch-up mandate in 2026? AStarting in 2026, workers who earned more than $150,000 in wages from their employer in the prior year (2025) must make all catch-up contributions on a Roth (after-tax) basis. This applies to 401k, 403b, 457, and TSP plans that offer a Roth option. If the plan doesn't have a Roth feature, those high earners cannot make catch-up contributions at all until one is added. QWhat is the IRA catch-up contribution limit for 2026? AThe IRA catch-up contribution limit increased to $1,100 in 2026, up from $1,000 in 2025. This is the first inflation adjustment to the IRA catch-up, made possible by SECURE 2.0. Combined with the $7,500 base IRA limit, workers 50+ can contribute up to $8,600 to a traditional or Roth IRA in 2026. QWhat is the SIMPLE IRA catch-up limit for 2026? AThe standard SIMPLE IRA catch-up for workers 50 and older is $4,000 in 2026 (up from $3,500 in 2025), bringing the total to $21,000. Workers ages 60-63 get a higher super catch-up of $5,250, bringing their total to $22,250. QDoes the super catch-up continue past age 63? ANo. The super catch-up applies only to workers who are 60, 61, 62, or 63. At age 64 and beyond, you return to the standard $8,000 catch-up limit. The four-year window is explicitly defined in SECURE 2.0. QCan I make catch-up contributions to a SEP-IRA? ANo. SEP-IRAs do not allow catch-up contributions. The contribution limit is based on 25% of compensation up to $70,000 in 2026, with no age-based add-on. If you're self-employed and want catch-up flexibility, a Solo 401k may be a better option. QWhen is the deadline for 2026 catch-up contributions? AFor 401k, 403b, 457, and SIMPLE plans, catch-up contributions must be made by December 31, 2026. For IRAs, the deadline is the tax filing deadline - April 15, 2027 for the 2026 tax year (extensions to the filing deadline do not extend the IRA contribution deadline). **Categories:** Taxes and Retirement **Tags:** 2012, 401K, catch-up, contribution, IRA, Roth IRA, SEP IRA, Simple IRA --- ### [2026 Update: H&R Block Online Tax Filing Review — Solid Software at a Lower Price Than TurboTax](https://savingtoinvest.com/hr-block-online-tax-filing-review/) **Published:** December 23, 2022 **Author:** Andy **Content:** ### Key Takeaways - H&R Block is the best value among the major tax software providers - Free through Self-Employed plans start at $0 and top out at $85 federal, well below TurboTax's $139 Premium. - State filing costs $37 per state on all paid plans, compared to $64 per state with TurboTax - a meaningful difference if you file in more than one state. - H&R Block added AI Tax Assist in 2025-2026, an AI tool available on paid plans that answers tax questions in plain English and reviews your return for missed deductions. - One advantage TurboTax can't match: H&R Block has thousands of physical office locations. If you prefer to hand your return to a human, you can start online and finish in person. - Free in-person audit support from enrolled agents is included with all plans - no upgrade needed. For tax year 2025 (filed in 2026), H&R Block is the strongest mid-market alternative to TurboTax — meaningfully cheaper across every tier, with a comparable guided interview experience and one thing TurboTax cannot offer: the option to walk into a physical office if you want a human to take over. Here is what has changed for 2025-2026 and whether it is worth switching. Covered in this Article: [Toggle](#) - [H&R Block Pricing for 2025-2026](#H_R_Block_Pricing_for_2025-2026) - [What Is New for 2025-2026](#What_Is_New_for_2025-2026) - [How H&R Block Compares to TurboTax](#How_H_R_Block_Compares_to_TurboTax) - [Audit Support](#Audit_Support) - [The In-Person Option](#The_In-Person_Option) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [When to Choose H&R Block Over TurboTax](#When_to_Choose_H_R_Block_Over_TurboTax) ## H&R Block Pricing for 2025-2026 H&R Block charges less than TurboTax at every tier, and the gap is significant at the upper end — $85 versus $139 for the self-employed tier. PlanFederalStateBest ForFree$0$0Simple W-2 returns with standard deductionDeluxe$35$37/stateHomeowners, itemizers, HSA, childcarePremium$60$37/stateInvestments, rental income, crypto salesSelf-Employed$85$37/stateFreelancers, contractors, small business owners State filing is $37 per state on paid plans. That is $27 cheaper per state than TurboTax’s $64. For a filer with income in two states, that alone saves $54. You can start any plan for free and only pay when you actually file. ## What Is New for 2025-2026 **AI Tax Assist** is H&R Block’s new AI tool, available on all paid plans. It answers tax questions in plain language as you file, and can review your return to flag potential missed deductions. It is similar to TurboTax’s Intuit Assist, though H&R Block’s version is more conversational and less focused on document parsing. The One Big Beautiful Bill (OBBB), passed in 2025, introduced new deductions that H&R Block now handles: the tips deduction (up to $25,000 for qualifying workers), 100% bonus depreciation on business equipment, and the now-permanent 20% Qualified Business Income (QBI) deduction for self-employed filers. H&R Block also updated its interface for tax year 2025 to better handle cryptocurrency reporting and rental property income — both previously weak spots compared to TurboTax. ## How H&R Block Compares to TurboTax The filing experience is similar — both use a step-by-step interview format, both cover the same federal forms, and both include an accuracy review before you submit. The meaningful differences are price, support, and the in-person option. H&R Block’s upsell pressure is lighter. TurboTax prompts you to upgrade at multiple points in the filing process. H&R Block is more restrained — you will see upgrade prompts mainly when you add an income type that your current plan does not cover. For complex returns (investments, multiple 1099s, self-employment, rental income), I still lean toward TurboTax’s [Premium tier](https://savingtoinvest.com/turbotax-review-great-tax-filing-software-with-live-support-for-a-premium-price/) for its depth and document import features. But for most filers — W-2 plus a mortgage and some investments — H&R Block’s Premium at $60 does the job TurboTax charges $139 for. *[Subscribe here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get notified when tax software pricing or tax law changes are announced.* ## Audit Support Free in-person audit support from H&R Block enrolled agents is included with every plan — no upgrade required. This is a genuine differentiator. TurboTax offers free audit guidance, but full representation requires the MAX add-on at extra cost. With H&R Block, you can walk into an office and have a licensed professional handle the IRS for you, included in the price you already paid. For identity theft protection and additional audit defense layers, H&R Block offers an optional Worry-Free Audit Support add-on, but it is not required for basic in-person audit help. ## The In-Person Option H&R Block has over 9,000 physical office locations in the U.S. If you start your return online and hit something confusing, you can hand it off to a tax professional at a local office. The software is integrated — your online progress carries over. This hybrid option does not exist with TurboTax. If you have any chance of wanting a human to complete your return, H&R Block is worth considering on that basis alone. ## Common Issues to Watch Out For One thing I hear about often: people who start with H&R Block Free and discover mid-return that their situation requires Deluxe or Premium. The Free plan is genuinely limited to simple W-2 returns with the standard deduction — if you have a mortgage, investments, or freelance income of any kind, you will be upgraded. The “Plus” add-on that appears after the accuracy review (adds document storage and live tech support) is optional — you do not need to take it. Click past if you do not want it. Also note: H&R Block’s Self-Employed plan ($85 federal) is a separate product from their Premium ($60) plan, not just an upgrade. Make sure you start in the right tier if you have freelance income — switching mid-return can be annoying. ## When to Choose H&R Block Over TurboTax H&R Block makes more sense if: you are price-sensitive, you want in-person backup as an option, or you have a relatively straightforward return (W-2, mortgage, standard investments). The savings versus TurboTax are real — $44 cheaper at the Premium tier, $27 less per state. TurboTax makes more sense if: you have a genuinely complex return (heavy crypto, multiple business income streams, rental properties across states), or you want the most polished document-import and AI-classification experience. See the full [best tax software comparison](https://savingtoinvest.com/the-best-tax-software-and-free-filing-options-as-tax-filing-goes-primarily-online/) for how H&R Block stacks up against TaxAct and other options. Frequently Asked Questions QHow much does H&R Block online cost for tax year 2025 (filed in 2026)? AH&R Block Free is $0. Deluxe is $35 federal + $37 per state. Premium is $60 federal + $37 per state. Self-Employed is $85 federal + $37 per state. All plans let you start for free and only pay when you file. QHow does H&R Block compare to TurboTax on price? AH&R Block is cheaper at every tier. TurboTax's Premium is $139 federal vs. H&R Block Premium at $60. State filing is $37 per state with H&R Block vs. $64 per state with TurboTax. For a filer in two states, H&R Block saves over $100 total. QDoes H&R Block have AI features in 2026? AYes. H&R Block added AI Tax Assist on all paid plans. It answers tax questions in plain language during filing and reviews your return for missed deductions. It is available on Deluxe, Premium, and Self-Employed plans. QDoes H&R Block offer free audit support? AYes. Free in-person audit support from enrolled agents is included with all H&R Block plans at no extra charge. This covers guidance through the IRS audit process. An optional Worry-Free Audit Support add-on is available for additional protection. QCan I start online and finish in person with H&R Block? AYes. H&R Block integrates its online software with its 9,000-plus physical office locations. You can start your return online and hand it off to a tax professional at a local office if you want human help to complete it. QWhat new 2025 deductions does H&R Block handle? AH&R Block handles all new One Big Beautiful Bill (OBBB) deductions for 2025: the tips deduction (up to $25,000 for qualifying workers), 100% bonus depreciation on business equipment placed in service after January 19, 2025, and the now-permanent 20% QBI deduction for self-employed filers. QIs H&R Block good for self-employed filers? AYes, particularly at $85 federal plus $37 per state - significantly cheaper than TurboTax Premium at $139 plus $64 per state. H&R Block Self-Employed covers full Schedule C, business income and expenses, the QBI deduction, and the new OBBB deductions. **Categories:** Taxes and Retirement --- ### [2026 Update: TurboTax Review — Great Tax Software With Live Support for a Premium Price](https://savingtoinvest.com/turbotax-review-great-tax-filing-software-with-live-support-for-a-premium-price/) **Published:** December 22, 2022 **Author:** Andy **Content:** ### Key Takeaways - TurboTax is the most widely used DIY tax software in the U.S., known for its step-by-step guided interview flow and strong live expert options. - For tax year 2025 (filed in 2026), the old Premier and Self-Employed tiers are merged into one Premium plan at $139 federal + $64 per state. - The One Big Beautiful Bill (OBBB) adds three new deductions for 2025: up to $25,000 in tip income, 100% bonus depreciation on business equipment, and a now-permanent 20% QBI deduction. - TurboTax's new Intuit Assist AI can auto-classify expenses and surface missed deductions - a genuine upgrade for self-employed filers. - State filing costs $64 per state on all paid tiers; total cost for a self-employed filer in one state is $203 with the DIY Premium plan. TurboTax is still the most widely used tax software in the country. For tax year 2025 (filed in 2026), it has made some real changes worth knowing before you pay — or decide to go elsewhere. The product lineup has been simplified, there are new deductions under the One Big Beautiful Bill (OBBB), and a new AI layer has been added. Here is what actually changed and whether the cost is worth it. Covered in this Article: [Toggle](#) - [TurboTax Pricing for 2025-2026](#TurboTax_Pricing_for_2025-2026) - [What Is New for the 2025 Tax Year](#What_Is_New_for_the_2025_Tax_Year) - [Intuit Assist AI](#Intuit_Assist_AI) - [Why TurboTax Still Works Well](#Why_TurboTax_Still_Works_Well) - [Is TurboTax Worth the Cost?](#Is_TurboTax_Worth_the_Cost) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Audit Support](#Audit_Support) - [When Is TurboTax Available?](#When_Is_TurboTax_Available) ## TurboTax Pricing for 2025-2026 The old Premier and Self-Employed packages are gone. TurboTax has merged them into a single **Premium** tier, which removes the guesswork about which middle-tier package you actually need. TierFederalStateBest ForFree$0$0Simple Form 1040 — roughly 37% of filers qualifyDeluxe$79$64/stateHomeowners, itemizers, mortgage interest, charitable donationsPremium$139$64/stateInvestments, rentals, crypto, freelancers, self-employedLive Assisted (Deluxe)~$129$64/stateDeluxe + unlimited expert help + final reviewLive Assisted (Premium)~$219$64/statePremium + unlimited expert help + final reviewLive Full ServiceVaries$39-$49/stateAn expert prepares and files your return for you A few things worth flagging here. The Free tier only covers a basic Form 1040 with limited credits — it is a smaller group than people expect. If you have a brokerage account, rental income, or any freelance income, you are almost certainly in Deluxe or Premium territory. State filing is $64 per state on all paid plans. If you worked in multiple states or moved during 2025, that stacks up fast. If you are unsure which tier fits your situation, start with the DIY version — TurboTax will prompt you to upgrade if your return requires a higher tier. ## What Is New for the 2025 Tax Year The biggest changes in 2025 are not from TurboTax itself — they come from the One Big Beautiful Bill (OBBB), passed in 2025. TurboTax now handles all three of these new deductions: **Tips deduction**: If you received tips at work in 2025, you can deduct up to $25,000 of that tip income. TurboTax walks you through eligibility in the income section. **100% bonus depreciation**: If you are self-employed or own a business and placed equipment into service after January 19, 2025, you can deduct 100% of the cost in year one. This is significant for freelancers and small business owners who bought gear last year. **Permanent QBI deduction**: The 20% Qualified Business Income deduction for pass-through businesses is now permanent under the OBBB, with expanded phase-in ranges — $75,000 for single filers, $150,000 for married filing jointly. Beyond the OBBB, the standard annual inflation adjustments apply: higher standard deductions, updated tax brackets, and higher retirement contribution limits. TurboTax updates for all of these automatically. ## Intuit Assist AI TurboTax added **Intuit Assist**, a generative AI layer built into the filing experience. It interprets uploaded tax documents via photo, auto-classifies business expenses, and flags deductions you may have missed — including the QBI deduction and home office deduction for self-employed filers. In my view this is most useful for Premium filers with mixed income (freelance plus W-2, or multiple 1099 sources). For simple W-2 filers it is mostly invisible. For self-employed filers it is a genuine time-saver. *[Subscribe here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get notified when TurboTax pricing or tax law changes are announced.* ## Why TurboTax Still Works Well The core experience has not changed much — and that is mostly a compliment. TurboTax asks about your life situation (job type, homeownership, kids, investments) before mapping you to forms. It does not hand you a blank Form 1040 and expect you to know what you need. The **CompleteCheck** review runs before you file, catching anything incomplete or inconsistent. The 100% accuracy guarantee still applies to calculation errors caused by the software, assuming you entered your information correctly. You can pay TurboTax’s fee out of your federal refund rather than upfront — though this option carries a small additional charge. TurboTax also accepts PDF imports of prior year returns from competitors like H&R Block or TaxAct, so switching is straightforward. ## Is TurboTax Worth the Cost? The main criticism of TurboTax is the same as always: it is expensive compared to [competitors](https://savingtoinvest.com/the-best-tax-software-and-free-filing-options-as-tax-filing-goes-primarily-online/). At $139 for Premium plus $64 per state, a self-employed filer in one state is paying $203 just for the DIY version. H&R Block and TaxAct offer comparable tiers at lower prices. If you are confident in your ability to file and do not need live expert access, you can save $50-$80 going elsewhere. That said, if you are dealing with something new in 2025 — first year freelancing, sold investments, bought a home, received tips, or have OBBB deductions to navigate — TurboTax’s depth is usually worth the premium. ## Common Issues to Watch Out For I get questions about this a lot: people who assume they qualify for the Free tier and hit a wall mid-filing because they have a brokerage account or freelance income. Check eligibility before you start to avoid a surprise at the end. The upsell prompts during filing are real and persistent. TurboTax will suggest Live Assisted or Full Service at multiple points. If you do not need it, click past — you are not required to upgrade. Also watch the state costs if you have multi-state income. Worked remotely with an employer in a different state, moved mid-year, or own rental property out of state — each of those can require a separate state return at $64 each. ## Audit Support Free audit guidance is included for all TurboTax filers — they will help you understand the IRS process. This is guidance only, not full representation. For full IRS representation, the optional **MAX audit defense** add-on covers identity theft monitoring, loss insurance, and a tax professional who handles the IRS on your behalf. It is available at checkout — worth considering if you have a complex return or have been audited before. ## When Is TurboTax Available? TurboTax for tax year 2025 became available in late December 2025. The IRS typically begins accepting returns in mid-to-late January. I would wait until then to file — last-minute IRS form changes can affect your return, and it is worth having all your documents (W-2s, 1099s) in hand first. Also see the full [IRS refund schedule](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/) for expected deposit dates once you file. Frequently Asked Questions QHow much does TurboTax cost for tax year 2025 (filed in 2026)? ATurboTax Free is $0 for simple Form 1040 filers (about 37% of taxpayers qualify). Deluxe costs $79 federal + $64 per state. Premium costs $139 federal + $64 per state. Live Assisted versions add $50-$80 to the base price. Live Full Service pricing varies by complexity. QWhat is TurboTax Premium and how is it different from Premier? ATurboTax merged its old Premier and Self-Employed tiers into a single Premium tier for 2025-2026. Premium covers investments, rental income, cryptocurrency, freelancers, and self-employed filers - all in one package at $139 for federal. QWhat new deductions can I claim for tax year 2025 that TurboTax handles? AUnder the One Big Beautiful Bill (OBBB), three new deductions apply for 2025: up to $25,000 in tip income can be deducted, business equipment placed in service after January 19, 2025 qualifies for 100% bonus depreciation, and the 20% Qualified Business Income (QBI) deduction is now permanent for pass-through business owners. QDoes TurboTax have AI features in 2026? AYes. TurboTax added Intuit Assist, a generative AI tool that interprets uploaded tax documents via photo, auto-classifies business expenses, and flags missed deductions. It is most useful for Premium filers with self-employment or mixed income. QIs TurboTax worth the cost compared to H&R Block or TaxAct? AFor simple returns, probably not - competitors like H&R Block and TaxAct offer similar coverage for less. For complex situations (investments, freelance income, OBBB deductions, first-time homeowners), TurboTax's guided flow and accuracy guarantee justify the premium for many filers. QDoes TurboTax offer audit support? AYes. Free audit guidance is included for all filers to help navigate the IRS process. The optional MAX audit defense add-on provides full IRS representation, identity theft monitoring, and loss insurance for an additional fee. QWhen is TurboTax available for the 2025 tax year? ATurboTax 2025-2026 became available in late December 2025. The IRS began accepting returns in January 2026. You can start early but should wait to file until the IRS opens and all your documents (W-2s, 1099s) have arrived. **Categories:** Taxes and Retirement **Tags:** tax, taxes, TurboTax --- ### [2026-2027 SEP IRA and Solo 401(k) Contribution Limits, Rules, and Comparison](https://savingtoinvest.com/sep-ira-rules-and-contribution-limits/) **Published:** July 11, 2016 **Author:** Andy **Content:** ### Key Takeaways - The 2026 SEP IRA contribution limit is $72,000, or 25% of compensation, whichever is lower. - Self-employed individuals use an adjusted formula - effectively ~20% of net self-employment income after SE tax deduction. - The Solo 401(k) also caps at $72,000 combined, but adds a $24,500 employee deferral component - making it more powerful at lower income levels. - Solo 401(k) has catch-up provisions: $8,000 for ages 50-59 and 64+, $11,250 for ages 60-63. SEP IRA has no catch-up. - SEP IRA contributions can be made up to your tax filing deadline including extensions (October 15 with extension). Solo 401(k) must be established by December 31. - Solo 401(k) is limited to self-employed owners with no non-spouse employees. SEP IRA can cover employees but requires the same contribution % for all eligible workers. - No Roth option for SEP IRAs - the solo 401(k) now offers a Roth option following SECURE 2.0. See our Traditional IRA vs. Roth IRA guide for the pre-tax vs. after-tax tradeoff explained. If you’re self-employed and not taking full advantage of a SEP IRA or Solo 401(k), you’re likely leaving a significant amount of tax-deferred savings on the table every year. I’ve talked to a lot of freelancers and small business owners over the years who are diligently contributing to a regular IRA — $7,500 a year, doing the right thing — while sitting on self-employment income that would qualify them to shelter three, four, even ten times that amount. The SEP IRA is one of the most powerful and underused retirement accounts in the tax code, precisely because the contribution limit scales with your income rather than being a fixed dollar cap. The pitch is simple: contribute up to 25% of compensation (or roughly 20% of net self-employment income after SE tax), deduct the full amount, and let it grow tax-deferred. No complicated setup, no annual filing requirements, no administrative headaches. You can even open one and fund it as late as your tax filing deadline with extensions — so if you had a good year and are looking for ways to reduce a tax bill before October, a SEP IRA is one of the cleanest options available. This post also covers the Solo 401(k), which I think more self-employed people should seriously consider. The contribution limit is the same $72,000, but the structure is different in a way that significantly favors lower-income earners and anyone who wants catch-up contributions or a Roth option. I’ll show you the math on when each plan wins. Below are the 2026 limits, confirmed by [IRS Notice IR-2025-111](https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500). Covered in this Article: [Toggle](#) - [2026 SEP IRA Contribution Limits](#2026_SEP_IRA_Contribution_Limits) - [Who Can Open a SEP IRA?](#Who_Can_Open_a_SEP_IRA) - [Self-Employed Contribution Formula](#Self-Employed_Contribution_Formula) - [Example: Self-Employed SEP IRA Calculation](#Example_Self-Employed_SEP_IRA_Calculation) - [Solo 401(k) for the Self-Employed: How It Compares to a SEP IRA](#Solo_401k_for_the_Self-Employed_How_It_Compares_to_a_SEP_IRA) - [2026 Solo 401(k) Contribution Limits](#2026_Solo_401k_Contribution_Limits) - [SEP IRA vs. Solo 401(k): Side-by-Side](#SEP_IRA_vs_Solo_401k_Side-by-Side) - [When the Solo 401(k) Wins vs. the SEP IRA](#When_the_Solo_401k_Wins_vs_the_SEP_IRA) - [Examples: Which Plan Wins?](#Examples_Which_Plan_Wins) - [SEP IRA Contribution Deadlines](#SEP_IRA_Contribution_Deadlines) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027](#Looking_Ahead_2027) ## 2026 SEP IRA Contribution Limits YearSEP IRA LimitCompensation Cap2023$66,000$330,0002024$69,000$345,0002025$70,000$350,0002026$72,000$360,0002027 (est.)$74,000$370,000 **Looking ahead to 2027:** The SEP IRA limit tracks the Section 415(c) defined contribution cap. At ~2.5% COLA it should move to approximately **$74,000**, with the compensation cap rising to **$370,000**. Confirmed figures arrive with the October/November IRS announcement. The SEP IRA limit is the same as the total 401(k) defined contribution cap (IRC Section 415(c)) — they move together. ## Who Can Open a SEP IRA? Any self-employed individual, freelancer, or small business owner can open a SEP IRA — including those with full-time W-2 jobs elsewhere. There’s no minimum income requirement, and there’s no age cap for contributions (as long as you have earned income). If you’re a solo business owner with no employees, it’s simple: you contribute on your own behalf. If you have employees, the rules get more complex: you must contribute the same percentage of compensation for all eligible employees as you do for yourself. **Eligible employees** include anyone who: - Is at least 21 years old - Has worked for you in at least 3 of the last 5 years - Earned at least $750 in compensation from you during the year (2026 threshold) You can use less restrictive eligibility requirements if you want to include employees sooner. ## Self-Employed Contribution Formula If you’re self-employed, the math isn’t simply 25% of your gross income. The actual formula accounts for the fact that you deduct half of your self-employment (SE) tax before calculating the contribution: 1. Calculate your net self-employment income (Schedule C profit) 2. Multiply by 92.35% (to deduct the employer portion of SE tax) 3. Multiply the result by 20% (which effectively equals ~20% rather than 25% because the contribution itself reduces the base) The IRS publishes a worksheet in Publication 560 that walks through this. Most tax software handles it automatically when you enter your Schedule C income. **Quick approximation:** For most self-employed people, the effective contribution rate on gross self-employment income is roughly 18–20%. ### Example: Self-Employed SEP IRA Calculation **Kim** runs a consulting business and earns $250,000 in net self-employment income in 2026. - Step 1: $250,000 × 92.35% = $230,875 (after SE tax deduction) - Step 2: The contribution rate is effectively ~20% of net profit - Contribution: roughly $46,175 That’s well under the $72,000 cap, so the cap doesn’t limit her here. She can also contribute to a traditional IRA on top of this (subject to deductibility phase-outs if she has no other workplace plan — but a SEP IRA counts as a workplace plan, so her deductibility phases out above $81,000 AGI as a single filer). **Ryan** earns $400,000 from his S-corp. His W-2 from the S-corp is $360,000 (the compensation cap). 25% of $360,000 = $90,000, but that exceeds the $72,000 limit, so his SEP IRA contribution is capped at **$72,000**. > *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) and I’ll update this page when the 2027 IRS limits are released.* ## Solo 401(k) for the Self-Employed: How It Compares to a SEP IRA The solo 401(k) — also called a one-participant 401(k) or individual 401(k) — is arguably the most powerful retirement vehicle for self-employed workers with no employees. It’s available to sole proprietors, freelancers, partners, and business owners whose only “employees” are themselves (and optionally their spouse). Unlike the SEP IRA, which is funded entirely through employer-style contributions, the solo 401(k) has two distinct components: - **Employee deferral** — up to $24,500 in 2026 (same ceiling as a traditional 401(k)) - **Employer profit-sharing** — up to 25% of W-2 compensation (or effectively ~20% of net SE income for sole proprietors) The combined cap is **$72,000** — same as the SEP IRA. But because the solo 401(k) includes a full $24,500 employee deferral before profit-sharing even starts, it reaches that ceiling much faster at lower income levels. ### 2026 Solo 401(k) Contribution Limits Contribution Type2026 LimitEmployee deferral$24,500Catch-up (age 50–59, 64+)$8,000Super catch-up (age 60–63)$11,250Employer profit-sharingUp to 25% of compensationCombined total (under 50)$72,000Combined total (age 50–59, 64+)$80,000Combined total (age 60–63)$83,250 The SEP IRA has **no catch-up provision** — there’s no bonus for being 50+. A solo 401(k) can be worth significantly more in total annual contributions for older workers at the same income level. ### SEP IRA vs. Solo 401(k): Side-by-Side FeatureSEP IRASolo 401(k)2026 total limit$72,000$72,000 combined ($80,000 / $83,250 with catch-up)Catch-up contributionsNone$8,000 (50–59, 64+); $11,250 (60–63)Roth optionNoYes (Roth solo 401(k))Employees allowedYes (employer contributions only)Spouse onlySetup complexityVery simpleMore paperworkContribution deadlineTax filing deadline + extensions (Oct 15)Plan must be established by Dec 31; fund by tax deadlineLoans allowedNoYes (if plan allows)Annual IRS filingNoForm 5500-EZ if plan assets exceed $250,000 ### When the Solo 401(k) Wins vs. the SEP IRA **Solo 401(k) wins at lower income levels.** The employee deferral component is fixed at $24,500 regardless of income. A SEP IRA contribution is capped at ~20% of net SE income — so at $50,000 net income, that’s only about $9,900. The solo 401(k) allows roughly $33,000+ at the same income. This gap closes as income rises. **Solo 401(k) wins if you want catch-up contributions.** The SEP IRA has no catch-up. If you’re 50+, the solo 401(k) adds $8,000 more per year on top of regular limits. If you’re 60–63, that jumps to $11,250 — a substantial difference. **Solo 401(k) wins if you want a Roth option.** A SEP IRA is pre-tax only. A Roth solo 401(k) — available at Fidelity, Vanguard, Schwab, and most major brokerages since SECURE 2.0 — lets contributions grow and withdraw tax-free. **SEP IRA wins if you have eligible employees.** A solo 401(k) is strictly for self-employed owners with no non-spouse employees. If you have anyone on payroll who meets the eligibility rules (age 21+, worked 3 of 5 prior years, earned $750+), the solo 401(k) isn’t available. **SEP IRA wins for last-minute filers.** You can open and fully fund a SEP IRA up to October 15 (with extension) for the prior tax year. A solo 401(k) must be *established* by December 31 of the plan year — you can’t set one up in February and fund it retroactively. ### Examples: Which Plan Wins? **Example 1: Lower income, younger freelancer** **Marcus**, 38, earns $80,000 net SE income in 2026. - *SEP IRA:* $80,000 × ~20% = **~$16,000** maximum contribution. - *Solo 401(k):* $24,500 employee deferral + profit-sharing (~20% × adjusted income) = roughly **$33,000–$35,000** total. For Marcus, the solo 401(k) doubles his contribution capacity. The SEP IRA would be leaving money on the table. **Example 2: High income, employee on payroll** **Carol**, 52, earns $400,000 from her design firm, which now has one part-time employee who meets the eligibility rules. The solo 401(k) is off the table — it doesn’t allow non-spouse employees. She needs a SEP IRA (or a traditional 401(k)/profit-sharing plan), but must contribute the same percentage to her employee’s SEP as she takes for herself. Her SEP IRA contribution: **$72,000** (25% × $360,000 compensation cap). **Example 3: Near-retiree maximizing catch-up** **Jim**, 62, earns $250,000 from freelance consulting in 2026. - *SEP IRA:* ~$46,000 (~20% of net SE income). No catch-up. Full stop. - *Solo 401(k):* $24,500 employee deferral + $11,250 super catch-up (60–63 SECURE 2.0 provision) + profit-sharing contribution = **$83,250** combined ceiling. At Jim’s income level, the solo 401(k) allows roughly $37,000 more — potentially tens of thousands of dollars in additional tax-deferred savings per year. Note: contributions to a SEP IRA and a solo 401(k) from the **same business** count toward the same combined $72,000/$83,250 ceiling — they’re not separate caps. If you have a W-2 job with its own 401(k) plus a side business with a SEP IRA, the interaction is more nuanced — a tax professional is worth the conversation. > *See our detailed breakdown of employee, employer, and super catch-up limits: [2026-2027 401(k), 403(b), and TSP Contribution Limits](https://savingtoinvest.com/taking-advantage-of-new-401k/).* ## SEP IRA Contribution Deadlines Unlike 401(k) plans, the SEP IRA contribution deadline is your **tax filing deadline, including extensions**: - If you file by April 15: contributions due April 15 - If you get an automatic 6-month extension: contributions due **October 15** This is a big advantage — you can wait until after the tax year ends to decide how much to contribute, once your income is known. You can even open a new SEP IRA account and fund it by the extension deadline. ## Common Issues to Watch Out For **1. Using gross self-employment income instead of net.** The 25% (effective ~20%) is applied to your net self-employment income — after all business expenses and after deducting half of your SE tax. Using gross revenue overstates your allowed contribution and can result in an excess that’s subject to a 10% excise tax. **2. Thinking you avoid mandatory employee contributions by using a SEP IRA.** If you have employees, you must fund their SEP IRAs at the same percentage you use for yourself. If you contribute 20% of your compensation to your own SEP, you must contribute 20% of each eligible employee’s compensation to their SEP. This is why many small business owners with employees switch to a [401(k)](https://savingtoinvest.com/taking-advantage-of-new-401k/) or [SIMPLE IRA](https://savingtoinvest.com/simple-ira-contribution-and-income-limits-small-business-retirement-plans/) instead — both offer more flexibility around employer contributions. **3. Missing the catch-up opportunity that doesn’t exist.** SEP IRAs have no catch-up contribution provision — there’s no bonus for being 50+ as there is with a 401(k) or traditional IRA. The $72,000 cap is the cap, regardless of age. **4. Contributing past the cap.** Excess SEP IRA contributions are subject to a 10% excise tax on the excess per year until corrected. The correction process requires removing the excess contribution plus earnings, which can get complicated. **5. Forgetting the SEP IRA counts as a workplace plan.** Having a SEP IRA (even as a self-employed person) means your traditional IRA deduction phases out above the standard threshold — $81,000 to $91,000 for single filers in 2026. ## Looking Ahead: 2027 The SEP IRA limit tracks the Section 415(c) defined contribution cap. Based on [~2.5% COLA trends](https://savingtoinvest.com/social-security-tax-and-cost-of-living-adjustment-cola/), the 2027 limit is projected at **$74,000** with a compensation cap of **$370,000**. Official figures typically arrive in October or November 2026. Also worth noting: SEP IRA contributions reduce your AGI, which can help you qualify for the [Saver’s Credit](https://savingtoinvest.com/savers-tax-credit-and-income-limits-to-help-workers-save-for-retirement/) if you’re near an income threshold — a credit worth up to $1,000 per person on top of the deduction. For the full picture of 2026 retirement limits, see the [401(k) and IRA contribution limits hub](https://savingtoinvest.com/401k-ira-and-roth-ira-contribution-and-income-limits/). Frequently Asked Questions QWhat is the SEP IRA contribution limit for 2026? AThe 2026 SEP IRA contribution limit is $72,000, or 25% of compensation (up to the $360,000 compensation cap), whichever is lower. Self-employed individuals use an adjusted formula that results in roughly 20% of net self-employment income. QCan self-employed workers contribute to a SEP IRA and a 401(k)? AYes, but contributions to both plans from the same business count toward the combined $72,000 limit. If you have a W-2 job with a separate 401(k) plan and a self-employed SEP IRA from a side business, the interaction is more nuanced - consult a tax professional. QWhat is the SEP IRA contribution deadline for 2026? ASEP IRA contributions for the 2026 tax year can be made up to your tax filing deadline, including extensions. With a 6-month extension, that's October 15, 2027. This is a significant advantage over 401(k) plans, which require elections before year-end. QDo SEP IRAs have a catch-up contribution for those over 50? ANo. Unlike 401(k) and traditional IRA plans, SEP IRAs have no catch-up contribution provision. The $72,000 cap applies to all contributors regardless of age. QIf I have employees, do I have to contribute to their SEP IRAs? AYes. If you have eligible employees, you must contribute the same percentage of their compensation to their SEP IRAs as you contribute to your own. If you put in 20% of your own compensation, you must fund 20% of each eligible employee's compensation. Eligible employees are those age 21+, who have worked for you in 3 of the last 5 years, and earned at least $750. QCan I open a SEP IRA if I already have a traditional IRA? AYes. A SEP IRA and a traditional or Roth IRA are separate accounts. However, having a SEP IRA is considered having a workplace retirement plan, which means your traditional IRA deduction may be limited if your income exceeds the phase-out range ($81,000-$91,000 single, $129,000-$149,000 MFJ in 2026). QShould I choose a SEP IRA or a solo 401(k)? AIt depends on your income and situation. At lower income levels (under ~$150,000 net SE income), the solo 401(k) typically wins because the $24,500 employee deferral lets you contribute far more than a SEP IRA's ~20% formula. If you have eligible employees, the solo 401(k) isn't available - you'd need a SEP IRA or SIMPLE IRA. If you want catch-up contributions (age 50+) or a Roth option, the solo 401(k) is the only choice between the two. QWhat is the solo 401(k) contribution limit for 2026? AIn 2026, the solo 401(k) allows up to $24,500 in employee deferrals plus employer profit-sharing of up to 25% of compensation. The combined limit is $72,000 for those under 50, $80,000 for ages 50-59 and 64+, and $83,250 for ages 60-63 (SECURE 2.0 super catch-up). The compensation cap is $360,000. **Categories:** Small Business, Taxes and Retirement **Tags:** 2022, 2023, 401K, IRS, pension, retirement Plans, saving, SEP IRA, Small Business --- ### [2026-2027 SIMPLE IRA Contribution Limits and Rules for Small Business Retirement Plans](https://savingtoinvest.com/simple-ira-contribution-and-income-limits-small-business-retirement-plans/) **Published:** December 22, 2011 **Author:** Andy **Content:** ### Key Takeaways - The 2026 SIMPLE IRA employee contribution limit is $17,000, up from $16,500 in 2025. - Employers with 25 or fewer employees may offer an 'applicable employer plan' with a higher limit of $18,100. - The standard catch-up for ages 50-59 and 64+ is $4,000 in 2026 (up from $3,500). - Ages 60-63 get a SECURE 2.0 super catch-up of $5,250, unchanged from 2025. - Employer match is required: either 2% nonelective for all eligible employees, or a dollar-for-dollar match up to 3% of compensation. - SIMPLE IRAs are exclusively for employers with 100 or fewer employees. - There is a 2-year rule: funds contributed to a SIMPLE IRA cannot be rolled over to a non-SIMPLE plan for the first 2 years of participation. The SIMPLE IRA (Savings Incentive Match Plan for Employees) is one of the most practical retirement plan options for small businesses. For 2026, the contribution limit rises to **$17,000**, and the catch-up provisions got a meaningful boost under SECURE 2.0. These 2026 figures are confirmed in [IRS Notice IR-2025-111](https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500). Covered in this Article: [Toggle](#) - [2026 SIMPLE IRA Contribution Limits](#2026_SIMPLE_IRA_Contribution_Limits) - [Who Can Use a SIMPLE IRA?](#Who_Can_Use_a_SIMPLE_IRA) - [Employer Match Requirements](#Employer_Match_Requirements) - [The 2-Year Rule: Critical to Know](#The_2-Year_Rule_Critical_to_Know) - [SIMPLE IRA vs. 401(k): Which Is Better for Small Business?](#SIMPLE_IRA_vs_401k_Which_Is_Better_for_Small_Business) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [Looking Ahead: 2027](#Looking_Ahead_2027) ## 2026 SIMPLE IRA Contribution Limits Contribution Type202520262027 (est.)Standard employee deferral$16,500**$17,000**$17,500Applicable employer plan (≤25 employees)$17,600**$18,100**$18,600Catch-up (age 50–59, 64+) — standard$3,500**$4,000**$4,000Catch-up — applicable employer plan (≤25 emp)$3,850**$3,850** (unchanged)$3,850Super catch-up (age 60–63) — standard$5,250**$5,250** (unchanged)$5,250Super catch-up — applicable employer plan$5,250**$5,250** (unchanged)$5,250 **Looking ahead to 2027:** The standard SIMPLE IRA deferral should reach approximately **$17,500**, with the small-employer limit at **$18,600**. Catch-up and super catch-up limits are likely unchanged pending a larger COLA adjustment. Official 2027 figures arrive in October/November 2026. ### Maximum Total Contributions in 2026 Age RangeStandard EmployerApplicable Employer (≤25 emp)Under 50$17,000$18,100Age 50–59, 64+$21,000$21,950Age 60–63$22,250$23,350 **On the applicable employer plan rules:** SECURE 2.0 created two tiers for SIMPLE IRA limits based on employer size. Employers with 25 or fewer employees can elect to offer the higher limit as an “applicable employer plan.” Employers with 26–100 employees can also elect this, but they must offset it by providing either a 4% employer match or a 3% nonelective contribution (higher than the standard). The employer must notify employees and make this election before the start of the calendar year. ## Who Can Use a SIMPLE IRA? SIMPLE IRAs are available to employers with **100 or fewer employees** who earned at least $5,000 in the prior year. The employer cannot have any other qualified retirement plan in place for the same employees during the SIMPLE IRA year. Eligible employees are those who earned at least $5,000 in any two prior years and are expected to earn at least $5,000 in the current year. Employers can use more relaxed eligibility standards, but not stricter ones. ### Examples: SIMPLE IRA in Practice **Paul**, 48, works for a 12-person staffing firm that uses the applicable employer plan election. He can defer up to $18,100 in 2026. His employer provides a 3% match on his $85,000 salary = $2,550. His total SIMPLE IRA funding: $20,650. **Sandra**, 62, works for a 40-person retail shop with a standard SIMPLE IRA. She defers $17,000 (standard limit) plus the $5,250 super catch-up = $22,250 total. Her employer contributes a 2% nonelective match on her $60,000 salary = $1,200. Total in her account: $23,450. ## Employer Match Requirements SIMPLE IRAs require the employer to contribute every year. There are two options: **Option 1: Dollar-for-dollar match up to 3% of compensation.** The employer matches each employee’s elective deferral, dollar for dollar, up to 3% of the employee’s compensation. In a bad year, the employer can reduce this to 1% for up to 2 out of every 5 years. **Option 2: 2% nonelective contribution.** The employer contributes 2% of compensation for all eligible employees — even those who choose not to defer. The $360,000 compensation cap applies when calculating this. The employer must notify employees of the plan and the contribution method by November 2 each year (for calendar-year plans). > *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) and I’ll post 2027 SIMPLE IRA limits when the IRS announces them in October or November.* ## The 2-Year Rule: Critical to Know One unique feature of SIMPLE IRAs is the **2-year participation rule**. During the first two years after you first participate in a SIMPLE IRA plan, you can only roll over or transfer funds to another SIMPLE IRA. You cannot roll to a traditional IRA, 401(k), or Roth IRA. If you leave your job within 2 years of opening your SIMPLE IRA and try to roll it to a regular IRA, it will be treated as a distribution — triggering income tax and a 25% early withdrawal penalty (not the usual 10%) if you’re under 59½. After the 2-year window, SIMPLE IRA funds can be rolled to traditional IRAs or other eligible plans. ## SIMPLE IRA vs. 401(k): Which Is Better for Small Business? Both are solid options. The key differences: FeatureSIMPLE IRASolo/Small Business 401(k)2026 employee max$17,000 ($18,100 small emp)$24,500Setup complexityVery simple (IRS model forms)More paperworkAdministrative costVery lowVariesMandatory employer matchYes (required every year)No2-year rollover restrictionYesNoAvailable to1–100 employeesSolo or small companies For businesses with higher-earning owners who want to maximize contributions, a [401(k)](https://savingtoinvest.com/taking-advantage-of-new-401k/) is often the better choice — the $24,500 employee limit plus profit-sharing gets you to $72,000. But for companies that want the simplest possible administration and don’t mind the mandatory match, a SIMPLE IRA is hard to beat. > *See our detailed guide: [2026-2027 401(k), 403(b), and TSP Contribution Limits](https://savingtoinvest.com/taking-advantage-of-new-401k/) — including employee, employer, catch-up, and super catch-up amounts.* ## Common Issues to Watch Out For **1. Missing the 2-year rollover restriction.** I get questions about this regularly — employees who leave a small company within two years and immediately try to roll their SIMPLE IRA into a Roth. That triggers a 25% penalty, not 10%. Mark your “2-year anniversary” date when you start participating. **2. Confusing SIMPLE IRA with SEP IRA.** Both are for small businesses, but they work very differently. [SEP IRAs](https://savingtoinvest.com/sep-ira-rules-and-contribution-limits/) are funded entirely by employer contributions and have a much higher limit ($72,000). SIMPLE IRAs involve both employee deferrals and mandatory employer matches. **3. Changing the employer match election late.** For a calendar-year plan, the employer’s election of contribution method must be communicated to employees by November 2. Missing this deadline means you’re locked into the prior year’s method. **4. Thinking the 3% match can always be reduced.** The 1% reduced match option is available no more than 2 years in any 5-consecutive-year period. If you’ve already used it twice in recent years, you can’t reduce again until the window resets. **5. Over-contributing if you have another job.** SIMPLE IRA employee deferrals count toward the overall elective deferral limit for the year. If you have a W-2 job with a 401(k) and also contribute to a SIMPLE IRA at a side employer, both contributions together cannot exceed the combined $24,500 employee deferral limit for 2026. SIMPLE catch-up contributions are separate and don’t count against the 401(k) catch-up limit. ## Looking Ahead: 2027 Based on [COLA trends](https://savingtoinvest.com/social-security-tax-and-cost-of-living-adjustment-cola/) (~2–3% adjustments, rounded per IRS increments): - Standard SIMPLE IRA limit: likely **$17,500** in 2027 - Applicable employer plan: ~$18,500 - Catch-up (50–59, 64+): likely stays at **$4,000** unless CPI warrants an increase - Super catch-up (60–63): likely unchanged at **$5,250** Official 2027 limits typically arrive in October or November 2026. I’ll update when confirmed. For all 2026 retirement limits including 401(k) and IRA, see the [401(k) and IRA contribution limits hub](https://savingtoinvest.com/401k-ira-and-roth-ira-contribution-and-income-limits/). Frequently Asked Questions QWhat is the SIMPLE IRA contribution limit for 2026? AThe 2026 SIMPLE IRA employee deferral limit is $17,000 for standard plans, up from $16,500 in 2025. Employers with 25 or fewer employees may offer a higher 'applicable employer plan' limit of $18,100. Catch-up contributions for ages 50-59 and 64+ add $4,000; ages 60-63 have a SECURE 2.0 super catch-up of $5,250. QWho can offer a SIMPLE IRA? AEmployers with 100 or fewer employees who earned at least $5,000 in the prior year are eligible to offer a SIMPLE IRA. The employer cannot maintain any other qualified retirement plan for the same employees during the SIMPLE IRA year. QWhat is the SIMPLE IRA 2-year rule? ADuring the first two years of participation in a SIMPLE IRA, funds can only be rolled over to another SIMPLE IRA. Rolling to a traditional IRA, 401(k), or Roth within this window is treated as a taxable distribution, subject to income tax and a 25% early withdrawal penalty (not the usual 10%) for those under 59½. QIs the SIMPLE IRA employer match required? AYes. Employers must make contributions each year - either a dollar-for-dollar match up to 3% of compensation (reducible to 1% in up to 2 out of 5 years), or a flat 2% nonelective contribution for all eligible employees. The 2% nonelective contribution goes to all eligible employees regardless of whether they contribute. QWhat is the super catch-up contribution for SIMPLE IRAs in 2026? AWorkers aged 60, 61, 62, or 63 can contribute a super catch-up of $5,250 to a SIMPLE IRA in 2026, unchanged from 2025. This is in addition to the standard $17,000 deferral, for a total of $22,250. QCan I have a SIMPLE IRA and a traditional IRA at the same time? AYes. You can contribute to both a SIMPLE IRA and a personal IRA (traditional or Roth) in the same year. However, having a SIMPLE IRA counts as having a workplace retirement plan - so your traditional IRA deduction may phase out depending on your income ($81,000-$91,000 single, $129,000-$149,000 MFJ in 2026). **Categories:** Taxes and Retirement **Tags:** 2016, 2017, Contribution Limits, IRA, retirement, saving, SEP IRA, Simple IRA, taxes --- ### [2026-2027 Earned Income Tax Credit (EITC) Income Limits and Qualification Rules](https://savingtoinvest.com/earned-income-tax-credit-eitc-qualification-and-income-threshold-limits/) **Published:** January 17, 2010 **Author:** Andy **Content:** ### Key Takeaways - The maximum EITC for TY2026 (claimed on 2027 tax returns) is $8,231 for families with 3 or more qualifying children. - For 2 children, the max credit is approximately $7,316. For 1 child: $4,427. For no children: $664. - Income limits for TY2026 increased approximately 2.3% from TY2025, following IRS inflation adjustments (Revenue Procedure 2025-32). - You must have earned income - wages, self-employment income, or combat pay. Investment income above $11,950 disqualifies you. - The EITC is a refundable credit - you can receive it even if you owe no federal tax. - The credit is claimed on Schedule EIC attached to your Form 1040. - New for 2026: The OBBB extended the TCJA tax cuts, but did not make direct changes to EITC eligibility rules. The Earned Income Tax Credit (EITC) is the largest refundable federal tax credit for working families and individuals. For tax year 2026 — the income you’ll report on the return you file in early 2027 — the maximum credit rises to **$8,231** for families with three or more qualifying children. These figures come from [IRS Revenue Procedure 2025-32](https://www.irs.gov/pub/irs-drop/rp-25-32.pdf), which sets the annual inflation adjustments for 2026. Covered in this Article: [Toggle](#) - [2026 EITC Maximum Credit Amounts (TY2026)](#2026_EITC_Maximum_Credit_Amounts_TY2026) - [2026 EITC Income Limits (TY2026)](#2026_EITC_Income_Limits_TY2026) - [How the EITC Works: Phase-In and Phase-Out](#How_the_EITC_Works_Phase-In_and_Phase-Out) - [Example: EITC in Action for 2026](#Example_EITC_in_Action_for_2026) - [Basic Qualifying Rules](#Basic_Qualifying_Rules) - [Military and Combat Pay](#Military_and_Combat_Pay) - [Common Issues to Watch Out For](#Common_Issues_to_Watch_Out_For) - [2026 Historical EITC Credit Comparison](#2026_Historical_EITC_Credit_Comparison) - [Looking Ahead: TY2027 EITC](#Looking_Ahead_TY2027_EITC) ## 2026 EITC Maximum Credit Amounts (TY2026) Number of Qualifying ChildrenTY2025 Max CreditTY2026 Max CreditTY2027 (est.)3 or more$8,046$8,231~$8,4202$7,152~$7,316~$7,4851$4,328~$4,427~$4,529None (no children)$649~$664~$679 **Looking ahead to TY2027:** Based on ~2.3% COLA, maximum EITC credits are projected to rise by roughly 2%. The IRS typically releases TY2027 adjustments via Revenue Procedure in fall 2026. The 3+ children figure is confirmed from Revenue Procedure 2025-32. The 1- and 2-children figures reflect the ~2.3% 2026 COLA applied to 2025 amounts and will be confirmed when the IRS publishes the full TY2026 EITC table in its official instructions for Schedule EIC. ## 2026 EITC Income Limits (TY2026) Your earned income and AGI must both fall below these limits to qualify. The investment income limit is also a separate test. Filing StatusChildrenTY2026 Income Limit (approx.)Single / HoH / Widowed3 or more~$58,630Single / HoH / Widowed2~$54,735Single / HoH / Widowed1~$47,630Single / HoH / WidowedNone~$19,020Married Filing Jointly3 or more~$64,860Married Filing Jointly2~$60,970Married Filing Jointly1~$53,860Married Filing JointlyNone~$26,100 These figures reflect the ~2.3% COLA applied to the TY2025 thresholds. Exact TY2026 figures will be published by the IRS in late 2026 in the Form 1040 Schedule EIC instructions. **Investment income disqualifier (TY2026):** You cannot claim the EITC if your investment income exceeds **$11,950** (up from roughly $11,600 in TY2025). ## How the EITC Works: Phase-In and Phase-Out The EITC doesn’t just shut off at the income limit — it phases in as you earn more, peaks, and then phases out as income rises further. Here’s the basic structure: - **Phase-in:** As earned income rises from $0, the credit increases until it reaches its maximum. - **Plateau:** The maximum credit stays flat across a range of income. - **Phase-out:** As income rises above the plateau, the credit decreases until it hits $0. This means the credit is highest for workers in the middle range — earning enough to trigger the full credit but not so much that it phases out. ### Example: EITC in Action for 2026 **Maria**, single with two qualifying children, earns $28,000 in wages in 2026. She’s squarely in the plateau range. Her EITC would be close to the ~$7,316 maximum for 2 children. Even if she owes no federal income tax, she receives the credit as a refund — that’s the “refundable” part. **James and Linda**, married with one qualifying child, earn $52,000 combined AGI in 2026. They’re in the phase-out zone for 1 child (income limit ~$53,860). Their credit would be a reduced amount below the ~$4,427 maximum, but they still qualify. > *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get notified when IRS publishes final TY2026 EITC tables.* ## Basic Qualifying Rules You must meet all of the following: **Earned income:** You need wages, salaries, tips, union strike benefits, combat pay, or net self-employment income. Alimony, child support, Social Security, pension income, and investment income don’t count as earned income. **Income limits:** Both your earned income and your AGI must be below the threshold for your filing status and number of children (see table above). **Filing status:** You cannot file as Married Filing Separately (MFS). All other statuses are eligible. **No qualifying child — special rules:** If you claim the EITC with no children, you must be between **25 and 64 years old** at the end of the tax year. You must not be the qualifying child of another person. **Qualifying child rules:** A qualifying child must be younger than 19 (or under 24 if a full-time student, or any age if permanently and totally disabled), must live with you in the U.S. for more than half the year, and must be related to you (child, stepchild, foster child, sibling, or descendant). **SSN requirement:** You, your spouse (if filing jointly), and any qualifying child must all have valid Social Security numbers. A child with an ITIN does not qualify. **Foreign income:** If you exclude foreign earned income on Form 2555, you can’t claim the EITC. ## Military and Combat Pay Members of the military have an election: you can choose to include nontaxable combat pay in your earned income for EITC purposes. Whether this helps depends on your total income — run the numbers both ways. Tax software typically does this automatically. ## Common Issues to Watch Out For **1. Not checking the investment income limit separately.** Even if your wages are under the limit, investment income above $11,950 in TY2026 disqualifies you entirely. A single stock sale or large dividend distribution can wipe out the EITC — I see this catch people off guard every filing season. **2. Missing the credit when you’re self-employed.** Self-employment income counts as earned income for the EITC. But you must report it on Schedule C — any income you earned in cash and didn’t report doesn’t count and could trigger an audit. **3. Custody disputes and who claims the child.** Only one parent can claim a qualifying child per year. If parents are divorced or separated, the child typically qualifies with the custodial parent (the one the child lived with more). The non-custodial parent can claim the child tax credit with a Form 8332, but cannot claim the EITC that way — the EITC requires the child to actually live with you. **4. Erroneously claiming a child who doesn’t qualify by age.** If your “child” is 20 and not a full-time student, they don’t qualify for the EITC — even if they still live at home. **5. Amended return timing.** If you were eligible for the EITC in a prior year but didn’t claim it, you have 3 years from the original due date to file an amended return (Form 1040-X). Don’t leave money on the table. ## 2026 Historical EITC Credit Comparison Tax Year3+ Children Max2 Children Max1 Child MaxNo Children MaxTY2023$7,430$6,604$3,995$600TY2024$7,830$6,960$4,213$632TY2025$8,046$7,152$4,328$649TY2026$8,231~$7,316~$4,427~$664TY2027 (est.)~$8,420~$7,485~$4,529~$679 The credit has grown steadily over the years, driven by inflation adjustments. ## Looking Ahead: TY2027 EITC Based on the recent [~2.3% COLA trend](https://savingtoinvest.com/social-security-tax-and-cost-of-living-adjustment-cola/), the maximum EITC for TY2027 (filed in 2028) could reach approximately: - 3+ children: ~$8,420 - 2 children: ~$7,485 - 1 child: ~$4,529 - No children: ~$679 These are rough projections. The IRS typically releases TY2027 adjustments via Revenue Procedure in fall 2026. For related credit information, see [2026 Saver’s Tax Credit income limits](https://savingtoinvest.com/savers-tax-credit-and-income-limits-to-help-workers-save-for-retirement/) and [2026 retirement contribution limits](https://savingtoinvest.com/401k-ira-and-roth-ira-contribution-and-income-limits/). Frequently Asked Questions QWhat is the maximum EITC for 2026? AFor tax year 2026 (claimed on your 2027 return), the maximum Earned Income Tax Credit is $8,231 for families with three or more qualifying children. Approximate maximums for other categories: ~$7,316 for 2 children, ~$4,427 for 1 child, and ~$664 for workers with no qualifying children. QWhat are the income limits for the EITC in 2026? AFor TY2026, the income limits are approximately $58,630 for single filers with 3+ children and $64,860 for married filing jointly with 3+ children. Limits are lower for fewer children: ~$47,630 (single, 1 child) and ~$19,020 (single, no children). Your AGI and earned income must both fall below the threshold. QIs the EITC refundable? AYes. The EITC is a fully refundable tax credit. If the credit exceeds your tax liability, the IRS sends you the difference as a refund. This is what makes it so valuable for lower-income workers who may owe little or nothing in federal income tax. QWhat counts as earned income for the EITC? AWages, salaries, tips, union strike benefits, combat pay, and net self-employment income all count. Social Security, pension income, alimony, child support, and investment income do not count as earned income. Investment income above $11,950 in TY2026 separately disqualifies you from the EITC. QCan I claim the EITC if I'm self-employed? AYes - net self-employment income reported on Schedule C counts as earned income for the EITC. You must report all your income accurately. Unreported cash income that doesn't appear on your tax return cannot be counted. QMy child is 20 and lives with me but is not in school. Can I claim the EITC? ANo. A qualifying child for the EITC must be under 19 at the end of the tax year, or under 24 if a full-time student, or any age if permanently and totally disabled. A 20-year-old who is not a full-time student does not meet the age test. **Categories:** Government Rebates and Payments, Taxes and Retirement **Tags:** 2011, 2012, 2013, 2014, 2017, 2018, Child Tax, credit, Earned Income, EITC, extension, IRS, stimulus --- ### [2026 Updates: IRS CP53E Notice — Your Refund Is Frozen, Here's What to Do in 30 Days](https://savingtoinvest.com/2026-updates-irs-cp53e-notice-your-refund-is-frozen-heres-what-to-do-in-30-days/) **Published:** June 27, 2026 **Author:** Andy **Content:** ### Key Takeaways - The IRS is phasing out paper checks -- if your refund cannot be deposited electronically, it gets frozen and you receive a CP53E notice. - You have 30 days to update your bank info via IRS Online Account, or the IRS will issue a paper check after about 6 weeks. - Over 1.4 million taxpayers received CP53E notices during the 2026 filing season. - Fake CP53E letters are circulating -- real IRS notices never include QR codes leading to third-party sites, and the IRS will never ask for bank info by phone. By early spring 2026, more than 1.4 million taxpayers had received an IRS CP53E notice — a letter that means your approved tax refund is frozen and you need to act. The cause is a new federal policy phasing out paper refund checks, and the window to fix it without losing time is just 30 days. If you got one of these letters, here’s exactly what it means, what to do next, and what to watch for — because fake CP53E letters are also circulating right now. Covered in this Article: [Toggle](#) - [Why the IRS Is Sending CP53E Notices in 2026](#Why_the_IRS_Is_Sending_CP53E_Notices_in_2026) - [What the CP53E Notice Actually Says](#What_the_CP53E_Notice_Actually_Says) - [How to Respond to a CP53E](#How_to_Respond_to_a_CP53E) - [The CP53E Scam: What to Watch For](#The_CP53E_Scam_What_to_Watch_For) - [How to Avoid This Situation Next Filing Season](#How_to_Avoid_This_Situation_Next_Filing_Season) ## Why the IRS Is Sending CP53E Notices in 2026 The short version: the government is getting out of the paper check business. Executive Order 14247, signed in March 2025, directed the Treasury Department to shift all federal payments — including tax refunds — to electronic disbursement. Under the old system, if your direct deposit was rejected, the IRS would automatically mail a paper check instead. That fallback is gone. Now, rejected or missing deposits trigger a refund freeze and a CP53E notice. You have to take action to get your money. Reasons your refund might get flagged include: filing without any direct deposit information, providing bank routing or account numbers that are wrong, having your bank reject the deposit because the account was closed or the name didn’t match, or having previously requested a paper check. ## What the CP53E Notice Actually Says The notice informs you that your refund has been approved but cannot be released until you provide valid banking information or request a waiver. You have roughly 30 days to respond. If you don’t act within that window, the IRS will eventually mail a paper check — but you’re looking at about six weeks of additional waiting from the notice date. For most people, acting quickly through IRS Online Account is the faster path. One important thing: the CP53E is a one-time notice. If you update your bank information and the IRS makes a second deposit that is also rejected, you will not receive another notice. So double-check your account and routing numbers before submitting. ## How to Respond to a CP53E The primary way to fix this is through your **IRS Online Account** at IRS.gov. Once logged in, go to *Profile > Banking > Information > Add Bank Account*. Enter your correct routing and account numbers, and the IRS will verify the information and release your refund by direct deposit. If you don’t have a bank account or meet certain hardship criteria, you can request a **paper check waiver** through your IRS Online Account, or by calling the main IRS line at **800-829-1040** and speaking with a customer service representative. There is also an information-only line listed on the notice — **866-325-4066** — that provides recorded explanations of what the CP53E means. This line cannot transfer you to a live agent, and IRS Customer Service cannot add or change banking information over the phone. Your IRS Online Account is the only way to update direct deposit details. Your situationWhat to doHave a bank account, wrong info on returnUpdate at IRS.gov Online Account: Profile > BankingHave a bank account, forgot to include itAdd at IRS.gov Online AccountNo bank accountCall 800-829-1040 to request a paper check waiverBank rejected deposit for unknown reasonConfirm details with your bank, then update at IRS.govWant to wait it outPaper check mailed about 6 weeks after notice date > *[Subscribe or follow us](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get further updates as the IRS adds more guidance on the CP53E process.* ## The CP53E Scam: What to Watch For Scammers are mailing convincing fake CP53E letters. Some include QR codes or urgent deadlines designed to trick you into entering banking information on phishing websites. By May 2026, the IRS updated its FAQs specifically because of the volume of confusion about whether these notices were real. Here’s how to tell the difference. A real CP53E comes only by mail — never by email or text message. A real notice might contain a QR code linking to an official IRS.gov page, but it will never direct you to a non-IRS website. The real IRS will never call you and ask for your bank account number. And real IRS notices don’t use threatening or urgent language like “your refund will be permanently forfeited.” If you receive a letter and are not sure whether it’s real, do not scan any QR code and do not call any phone number printed on it. Instead, go directly to **IRS.gov** in your browser and log in to your Online Account. If there is actually a frozen refund associated with your Social Security number, you will see it there. You can also verify any IRS notice at **IRS.gov/notices**. ## How to Avoid This Situation Next Filing Season The fix going forward is straightforward: always include direct deposit information when you file, and double-check your routing and account numbers. Set up an IRS Online Account now so you can respond quickly if something goes wrong. If you typically get a refund by paper check out of habit, that habit is going to cost you time from here on. The IRS will eventually mail a check if you don’t respond to a CP53E, but you’re adding weeks to your wait for no reason. Direct deposit is now the expected default. The Taxpayer Advocate Service has flagged concerns about vulnerable taxpayers — elderly filers, those without internet access, and unbanked households — who may struggle with this new process. If you’re helping someone in that situation, the 800-829-1040 line and paper check waiver is the right path. For more on when to expect your refund after resolving a CP53E, see our [2026 IRS Tax Refund Schedule](https://savingtoinvest.com/2026-irs-tax-refund-schedule-dates-direct-deposit-dates/). And if you received a notice about a refund being offset for debt, see our guide on [tax refund offsets](https://savingtoinvest.com/tax-refund-offset-student-loans-child-support-how-to-get-back/) for that situation. Frequently Asked Questions QWhat is an IRS CP53E notice? AIt's a letter the IRS sends when your tax refund has been approved but cannot be delivered electronically -- either because no direct deposit info was on file, the account info was wrong, or your bank rejected the deposit. The IRS freezes your refund and gives you 30 days to update your banking information or request a paper check waiver. QWhy is the IRS sending CP53E notices in 2026? AExecutive Order 14247, signed in March 2025, directed the Treasury to phase out paper checks for federal disbursements including tax refunds. The IRS no longer automatically converts rejected direct deposits into paper checks -- instead it freezes the refund and sends a CP53E. QHow do I respond to a CP53E notice? ALog in to your IRS Online Account at IRS.gov and go to Profile > Banking > Information > Add Bank Account. If you qualify for a waiver, you can also request a paper check waiver through your online account or by calling 800-829-1040. QHow long do I have to respond to a CP53E? AYou generally have 30 days from the date of the notice. If you take no action, the IRS will issue a paper check about 6 weeks after the notice date. The CP53E is a one-time notice -- if a second direct deposit is rejected, you will not get another automatic opportunity to update your bank info. QIs my CP53E notice real or a scam? AScammers are sending fake CP53E letters, often with QR codes. The real IRS never sends CP53E notices by email or text, never uses QR codes pointing to non-IRS sites, and never asks for your bank info over the phone. If unsure, go directly to IRS.gov/Account rather than scanning any code or calling a number printed on the letter. QWhat if I don't have a bank account? ACall the main IRS line at 800-829-1040 and request a paper check waiver. You can also request the waiver through your IRS Online Account if you meet the criteria. The information-only line at 866-325-4066 provides recorded guidance but cannot process requests. **Categories:** Taxes and Retirement --- ### [2026 Average IRS and State Tax Refund — $3,676 Nationally, All 50 States, and Processing Times](https://savingtoinvest.com/average-irs-and-state-tax-refund-and-processing-times/) **Published:** March 8, 2014 **Author:** Andy **Content:** ### Key Takeaways - The average 2026 federal tax refund is $3,676 as of early March -- up 10.6% from $3,324 at the same point in 2025. - OBBBA deductions for tips (up to $25,000), overtime (up to $12,500), auto loan interest on American-made vehicles, and a new senior deduction are the primary reason refunds are larger. - About 70% of returns filed in 2026 received a refund -- up from roughly 63% in prior years. - Florida ($3,852), Texas ($3,774), and Wyoming ($3,720) have the highest average federal refunds by state; Maine ($2,656), Wisconsin ($2,737), and Oregon ($2,772) have the lowest. - Most e-filed state returns process in 2-6 weeks; paper returns take 6-12 weeks in most states. Georgia (up to 90 days e-file) and California (up to 3 months paper) are outliers. The average federal tax refund as of March 6, 2026 was **$3,676** — up 10.6% from $3,324 at the same point in 2025. By early April the average settled to $3,462, still up 11.1% year-over-year. The IRS has paid out $241.7 billion in refunds through early April, compared to $211.1 billion in 2025 — a $30.7 billion jump. The driver is the One Big Beautiful Bill Act (OBBBA). New deductions for tips, overtime, and auto loan interest applied to 2025 income, but IRS withholding tables weren’t updated in time, leaving millions of workers over-withheld all year. The refund is the correction. Covered in this Article: [Toggle](#) - [Why 2026 Refunds Are Running Higher](#Why_2026_Refunds_Are_Running_Higher) - [Average IRS Federal Tax Refund by Year](#Average_IRS_Federal_Tax_Refund_by_Year) - [Average Federal Tax Refund by State (50 States)](#Average_Federal_Tax_Refund_by_State_50_States) - [Why Do States Vary So Much?](#Why_Do_States_Vary_So_Much) - [State Tax Refund Processing Times (2026)](#State_Tax_Refund_Processing_Times_2026) ## Why 2026 Refunds Are Running Higher The One Big Beautiful Bill Act (OBBBA), passed in 2025, introduced several deductions that took effect for the 2025 tax year — the income year covered by returns filed in 2026. **No tax on tips (up to $25,000):** Workers who received tips can deduct up to $25,000, with a phase-out above $150,000 (single) / $300,000 (joint). This is a major change for servers, bartenders, hotel workers, and anyone else in tip-heavy jobs. **No tax on overtime (up to $12,500):** Overtime pay is deductible up to $12,500 per person, same income thresholds. Factory workers, nurses, first responders, and anyone who worked significant overtime in 2025 sees this directly. **Auto loan interest on American-made vehicles:** Interest on car loans for U.S.-manufactured vehicles is now deductible — the first time car loan interest has been deductible for most taxpayers since the 1980s. **Senior citizen deduction:** A new additional deduction for taxpayers 65 and older provides meaningful relief for retirees who don’t otherwise itemize. The over-withholding effect: the IRS didn’t update employer withholding tables before the 2025 tax year started. So employers withheld taxes all year as if those deductions didn’t exist. The refund corrects the overpayment. > **Example — Sarah, restaurant server:** Sarah earned $52,000 in 2025, including $18,000 in tips. Her employer withheld taxes on the full $52,000. She can now deduct the $18,000 in tips, reducing her taxable income to $34,000. At a 22% rate, that’s roughly $3,960 she overpaid — showing up as a larger refund. > **Example — Mark, manufacturing worker:** Mark earned $65,000, with $9,000 from overtime, and paid $2,400 in interest on a loan for his American-made truck. He can deduct both — $11,400 total — reducing taxable income at a 22% rate by about $2,500. Will 2027 refunds be this large? Probably not. The IRS updated withholding tables for 2026 income to reflect the OBBBA rules, so workers will be withheld more accurately going forward. Smaller refunds next year means more take-home pay throughout 2026 — the money arrives in paychecks instead. ## Average IRS Federal Tax Refund by Year Filing SeasonTax YearAverage Refund (Mid-Season)Approx. Year-End AverageChange20262025$3,676 (Mar 6) / $3,462 (Apr 3)Est. ~$3,100-$3,200+10-11%20252024$3,324 (Mar 7)~$2,939+2.4%20242023~$3,011~$2,869+4.8%20232022~$2,933~$2,753-9.4%20222021~$3,263~$3,039+10.7%20212020~$2,880~$2,775+14.5% *Sources: IRS Weekly Filing Season Statistics; IRS Statistics of Income. Mid-season figures are snapshots from early March each year. Year-end figures reflect final IRS SOI data. 2026 year-end is a projection based on mid-season pace.* *[Subscribe here](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) to get notified when the 2026 year-end figure is published.* ## Average Federal Tax Refund by State (50 States) The table below uses the most recent available IRS Statistics of Income data, from the 2025 filing season (tax year 2024). The IRS does not release state-level SOI data until well after year-end, so 2026 state figures are not yet available. Given the national 10-11% increase, actual state averages this year are likely running proportionally higher across the board. Florida, Texas, Nevada, Wyoming, South Dakota, Washington, Tennessee, New Hampshire, and Alaska have no state income tax. Their federal refund averages still apply — residents file federal returns — but there is no state income tax refund in these states. RankStateAvg Federal Refund (2025 filing season)1Florida$3,8522Texas$3,7743Wyoming$3,7204Nevada$3,6435Louisiana$3,5776Georgia$3,5747Mississippi$3,4918Illinois$3,3949Connecticut$3,36210Alabama$3,35711California$3,34412New York$3,33913Massachusetts$3,32714New Jersey$3,31715Washington$3,31016Maryland$3,24217Arkansas$3,22418Virginia$3,21719Oklahoma$3,21320Utah$3,21021Alaska$3,20622Tennessee$3,19223Arizona$3,17924Colorado$3,14225New Hampshire$3,09126North Dakota$3,07727North Carolina$3,06328Delaware$3,04829Michigan$3,04730Idaho$3,04031Indiana$3,02832South Carolina$3,02033Hawaii$3,01134Pennsylvania$3,01135South Dakota$3,00436Kansas$3,00037Missouri$2,99138Nebraska$2,93539Iowa$2,92440Kentucky$2,92241New Mexico$2,91242Ohio$2,87443Rhode Island$2,87144Montana$2,87045Minnesota$2,83846West Virginia$2,83447Vermont$2,81648Oregon$2,77249Wisconsin$2,73750Maine$2,656 *Source: IRS Statistics of Income, 2025 filing season (tax year 2024). 2026 state-level data will be updated when the IRS releases its annual SOI report.* ### Why Do States Vary So Much? The main driver is whether the state has an income tax. Florida, Texas, Nevada, and Wyoming rank in the top 5 — and all have no state income tax. Without state withholding reducing paychecks, workers often don’t adjust their federal W-4 allowances, leading to systematic federal over-withholding and higher average federal refunds. The lowest-refund states — Maine, Wisconsin, Oregon — tend to have higher state taxes and more integrated withholding, so federal withholding ends up more accurate and refunds are smaller. A small refund isn’t a bad outcome; it means your money was in your pocket during the year. The EITC and Child Tax Credit also play a role. States with more lower-income households have higher EITC usage, which significantly inflates the average refund. Mississippi ranks 7th nationally in part because over 22% of filers there claim the EITC. ## State Tax Refund Processing Times (2026) Your state income tax refund is separate from your federal refund. The IRS and state departments of revenue process returns independently — a fast federal refund tells you nothing about how long your state will take. StateE-File ProcessingPaper ReturnNotesAlabama2-6 weeks8-12 weeksAlaskaNo state income taxN/AArizona2-6 weeks8-12 weeksArkansas2-6 weeks6-12 weeksCalifornia2-3 weeksUp to 3 monthsHigh volume; paper returns notoriously slowColorado2-6 weeks6-12 weeksConnecticut2-3 weeks6-10 weeksDelaware10-12 weeks12-16 weeksLonger than average for e-fileFloridaNo state income taxN/AGeorgiaUp to 90 daysUp to 6 monthsLongest standard e-file window of any major stateHawaii7-8 weeks9-10 weeksIdaho7-8 weeks10-11 weeksFraud review on every returnIllinois2-3 weeks6-8 weeksIndiana2-3 weeks6-10 weeksIowa~30 days~30 daysMost issued before end of MayKansas10-14 business days16-20 weeksVery fast e-file; very slow paperKentucky4-6 weeks10-14 weeksLouisiana4+ weeks8-16 weeksUp to 16 weeks if selected for reviewMaine~8 weeks8-12 weeks60-day statutory window before interest owedMaryland2-3 weeks6-10 weeksMassachusetts4-6 weeks8-12 weeksMichigan~2 weeksUp to 6 weeksOne of the faster statesMinnesotaNo fixed windowNo fixed windowTracker updates nightly Mon-FriMississippi2-6 weeks6-12 weeksMissouri2-6 weeks6-12 weeksMontana2-6 weeks6-12 weeksNebraska2-6 weeks6-12 weeksNevadaNo state income taxN/ANew HampshireNo general income taxN/ANew Jersey~4 weeksUp to 12 weeksNew Mexico2-6 weeks6-12 weeksNew YorkUp to 3 weeksUp to 6 weeksHigh volume; ID verification commonNorth Carolina2-6 weeks6-12 weeksNorth Dakota2-6 weeks6-12 weeksOhio2-6 weeks6-12 weeksOklahoma2-6 weeks6-12 weeksOregon2-6 weeks6-12 weeksPennsylvania4-6 weeks8-10 weeksRhode Island2-6 weeks6-12 weeksSouth CarolinaUp to 8 weeksUp to 12 weeks2026: SC does not yet conform to OBBBA; delays reportedSouth DakotaNo state income taxN/ATennesseeNo general income taxN/ATexasNo state income taxN/AUtah2-6 weeks6-12 weeksVermont2-6 weeks6-12 weeksVirginia3-4 weeks4-6 weeksWashingtonNo state income taxN/AWest Virginia2-6 weeks6-12 weeksWisconsin2-6 weeks6-12 weeksWyomingNo state income taxN/AWashington D.C.2-6 weeks6-12 weeks *Sources: State department of revenue websites; updated for 2026. Times reflect standard processing; actual windows may be longer during peak filing season (Feb-April).* For more on federal refund timing, see our [2026 IRS Tax Refund Schedule](https://savingtoinvest.com/2026-irs-tax-refund-schedule-dates-direct-deposit-dates/). If your refund has been offset for a past debt, see our guide on [tax refund offsets](https://savingtoinvest.com/tax-refund-offset-student-loans-child-support-how-to-get-back/). Frequently Asked Questions QWhat is the average tax refund in 2026? AAs of March 6, 2026, the average federal tax refund was $3,676 -- up 10.6% from $3,324 at the same point in 2025. By early April the average settled to $3,462 (up 11.1%). The final year-end average is expected around $3,100-$3,200 once all returns are processed. QWhy is the average refund so much higher in 2026? AThe One Big Beautiful Bill Act (OBBBA) added deductions for 2025 income -- tips (up to $25,000), overtime (up to $12,500), auto loan interest on American-made vehicles, and a new senior deduction. Because the IRS did not update withholding tables before 2025 started, workers were over-withheld all year. The 2026 refund corrects that overpayment. QWhich state has the highest average tax refund? AFlorida leads with an average federal refund of $3,852 per the most recent IRS Statistics of Income data (2025 filing season, tax year 2024), followed by Texas ($3,774) and Wyoming ($3,720). No-income-tax states dominate the top of the list because residents often over-withhold at the federal level. QWhich state has the lowest average tax refund? AMaine has the lowest average at $2,656, followed by Wisconsin ($2,737) and Oregon ($2,772). These states tend to have more accurate withholding practices -- a smaller refund means residents kept more money in their paychecks throughout the year. QHow long does a state tax refund take? AMost e-filed state returns process in 2-6 weeks. Paper returns take 6-12 weeks in most states. Georgia can take up to 90 days for e-file. California paper returns can take up to 3 months. Nine states have no income tax and issue no state refund. QWill 2027 refunds be as large as 2026? AProbably not. The 2026 surge is largely a one-time correction for over-withholding in 2025 before OBBBA tables were in place. For 2026 income, the IRS updated withholding tables, so workers will have less over-withheld throughout 2026 -- meaning smaller refunds at 2027 filing time, but more money in each paycheck during the year. **Categories:** Personal Finance and Money, Taxes and Retirement **Tags:** IRS, refund, state refund processing times, tax --- ## Pages ### [About The Author and Site](https://savingtoinvest.com/about/) **Published:** May 15, 2010 **Author:** Andy **Content:** Saving to Invest is a personal finance blog covering topics ranging from unemployment benefits, saving money, taxes, to investing. I started it in 2008 to educate myself by writing plain-english articles covering the economy, ever changing tax laws and their impact, and various government benefits (free money) — it’s grown from there into a resource people come back to every year. This includes perennial topics like [refund delays/payment schedules](https://savingtoinvest.com/irs-refund-schedule-and-direct-deposit-cycle-chart-for-tax-return-filings/), contribution limits, COLA adjustments, benefit amounts, [GS pay raises](https://savingtoinvest.com/federal-employee-gs-pay-chart-and-raise/), etc. ### About Me ![Andy - Saving to Invest](https://i0.wp.com/savingtoinvest.com/wp-content/uploads/2026/07/andy-avatar-navy-green.png?w=820&ssl=1)I admit it — I’m a personal finance junkie when it comes to all things money, and this site is the main channel through which I share my thoughts and hopefully add value for readers. I’m married with teenage kids, have a decent household income, a growing share/funds portfolio, and hope to retire sooner rather than later. I’ve been tracking IRS refund cycles, Social Security [COLA](https://savingtoinvest.com/social-security-tax-and-cost-of-living-adjustment-cola/) adjustments, and [401(k)/IRA](https://savingtoinvest.com/401k-ira-and-roth-ira-contribution-and-income-limits/) limits every year since 2008, and I’m still an active investor who believes smart money management and regular investing are the real secrets to financial freedom. You’ll also find I write and post updates on topical items that affect us financially, including [stimulus programs](https://savingtoinvest.com/direct-cash-payments-to-americans-as-part-of-2020-coronavirus-stimulus-package/), enhanced [unemployment benefits](https://savingtoinvest.com/maximum-weekly-unemployment-benefits-by-state/), retirement plans, and the ever-changing [tax landscape](https://savingtoinvest.com/category/taxes-and-retirement/). When you mix politics and a volatile economy, you get a lot of changes in these areas that affect us all. I hope you enjoy what I write and get something useful out of the site. I’d love to hear your feedback. I write under “Andy” rather than my full name — my day job comes with contractual limits on public commentary, so a byline keeps the site’s focus on the numbers rather than on me. What doesn’t change: every figure, deadline, and rate on this site is pulled from primary sources and re-checked on the date shown at the top of each post. If something looks wrong or out of date, tell me and I’ll fix it. ### How I Research and Verify What I Publish Every post starts with primary sources: IRS publications and instructions, Social Security Administration releases, USDA and state SNAP agency data, Department of Labor unemployment figures, and original bill text for legislation like the One Big Beautiful Bill Act. I don’t rely on press summaries or other blogs for the numbers — when something changes (a COLA adjustment, a contribution limit, a benefit amount), I go back to the source document and update the post. That’s why you’ll see a “last verified” or “last updated” date on time-sensitive articles. Spot something outdated or wrong? Email me at andys \[at\] savingtoinvest.com and I’ll correct it, usually within a day. ### So why Saving to Invest? I chose the title because, in my opinion, it reflects the secret to financial freedom for most people: **Wealth = Savings + Investments.** Simple, and it’s the basic premise of this blog and my financial philosophy. Unless you’re bestowed with family money or win the lottery, the only way to reach financial freedom is to save effectively (don’t spend more than you earn) and then invest that money effectively over the medium to long term in a diversified portfolio and retirement accounts. Easy? No — it takes work, discipline, and desire. This blog reflects that journey and tries to give you the information to make it yours too. You can get the latest articles and our weekly newsletter delivered by [email](https://savingtoinvest.com/subscribe). You can also follow the site on [Facebook](https://www.facebook.com/SavingtoInvest) or [Twitter](https://twitter.com/saving2invest), or subscribe to the [Saving to Invest YouTube channel](https://savingtoinvest.com/youtube) for video updates. Cheers, Andy --- ### [Subscribe (Free) For The Latest Articles](https://savingtoinvest.com/subscribe-free-for-the-latest-articles/) **Published:** February 3, 2023 **Author:** Andy **Content:** Join thousands of readers to get the latest updates on new tax credits, IRS refund schedules & delays, annual retirement plan limit COLA updates, and government benefit payments and programs. Email Address Subscribe *You’ll get an email to confirm your subscription — check your spam or junk folder if it doesn’t arrive right away. Unsubscribe anytime, no questions asked.* You can also follow us ***on [Facebook/Meta](https://savingtoinvest.com/facebook), [Instagram](https://www.facebook.com/SavingtoInvest) or [Twitter/X](https://twitter.com/saving2invest)*** --- ### [Privacy Policy](https://savingtoinvest.com/privacy-policy/) **Published:** May 25, 2018 **Author:** Andy **Content:** Covered in this Article: [Toggle](#) - [Who we are](#Who_we_are) - [What personal data we collect and why we collect it](#What_personal_data_we_collect_and_why_we_collect_it) - [AI-Assisted Content and Tools](#AI-Assisted_Content_and_Tools) - [How long we retain your data](#How_long_we_retain_your_data) - [What rights you have over your data](#What_rights_you_have_over_your_data) - [Where we send your data](#Where_we_send_your_data) ## Who we are Our website address is: https://savingtoinvest.com. ## What personal data we collect and why we collect it ### Comments When visitors leave comments on the site we collect the data shown in the comments form, and also the visitor’s IP address and browser user agent string to help spam detection. An anonymized string created from your email address (also called a hash) may be provided to the Gravatar service to see if you are using it. The Gravatar service privacy policy is available here: https://automattic.com/privacy/. After approval of your comment, your profile picture is visible to the public in the context of your comment. ### Media If you upload images to the website, you should avoid uploading images with embedded location data (EXIF GPS) included. Visitors to the website can download and extract any location data from images on the website. ### Contact forms ### Analytics We use Google Analytics to understand how visitors use this Site — which pages are read, how long visitors stay, and general traffic trends. Google Analytics collects information such as your IP address (which we have configured to be anonymized where possible), browser type, device type, and pages visited, through the use of cookies and similar technologies. This data is aggregated and used to improve the Site’s content; it is not used to individually identify you. You can opt out of Google Analytics tracking across all websites by installing the [Google Analytics Opt-out Browser Add-on](https://tools.google.com/dlpage/gaoptout). See [Google’s Privacy Policy](https://policies.google.com/privacy) for more on how Google handles this data. ### Advertising CMI Marketing, Inc., d/b/a Raptive (“Raptive”) is a service provider of this Site for the purposes of placing advertising on the Site, and Raptive will collect and use certain data for advertising purposes, including cookies and similar technologies to personalize ads and measure ad performance. To learn more about Raptive’s data usage, see Raptive’s [Universal Advertising Privacy Policy Statement](https://raptive.com/creator-advertising-privacy-statement). ### Cookies If you leave a comment on our site you may opt-in to saving your name, email address and website in cookies. These are for your convenience so that you do not have to fill in your details again when you leave another comment. These cookies will last for one year. If you have an account and you log in to this site, we will set a temporary cookie to determine if your browser accepts cookies. This cookie contains no personal data and is discarded when you close your browser. When you log in, we will also set up several cookies to save your login information and your screen display choices. Login cookies last for two days, and screen options cookies last for a year. If you select “Remember Me”, your login will persist for two weeks. If you log out of your account, the login cookies will be removed. If you edit or publish an article, an additional cookie will be saved in your browser. This cookie includes no personal data and simply indicates the post ID of the article you just edited. It expires after 1 day. ### Embedded content from other websites Articles on this site may include embedded content (e.g. videos, images, articles, etc.). Embedded content from other websites behaves in the exact same way as if the visitor has visited the other website. These websites may collect data about you, use cookies, embed additional third-party tracking, and monitor your interaction with that embedded content, including tracing your interaction with the embedded content if you have an account and are logged in to that website. ## AI-Assisted Content and Tools Some articles on this Site are researched, drafted, or updated with the help of artificial intelligence tools, and some supporting images are AI-generated or AI-edited. All AI-assisted content is reviewed by a human editor for accuracy before publication. We do not use comments, contact form submissions, or other personal data you submit to this Site to train AI models. ## How long we retain your data If you leave a comment, the comment and its metadata are retained indefinitely. This is so we can recognize and approve any follow-up comments automatically instead of holding them in a moderation queue. For users that register on our website (if any), we also store the personal information they provide in their user profile. All users can see, edit, or delete their personal information at any time (except they cannot change their username). Website administrators can also see and edit that information. ## What rights you have over your data If you have an account on this site, or have left comments, you can request to receive an exported file of the personal data we hold about you, including any data you have provided to us. You can also request that we erase any personal data we hold about you. This does not include any data we are obliged to keep for administrative, legal, or security purposes. If you are a California resident, you have additional rights under the California Consumer Privacy Act (CCPA), including the right to know what personal information we and our service providers (including Raptive, for advertising) have collected about you, the right to request deletion of that information, and the right to opt out of the “sale” or “sharing” of personal information for cross-context behavioral advertising. To exercise these rights or ask questions, [contact me](mailto:admin@savingtoinvest.com?subject=SavingtoInvest_Privacy). ## Where we send your data Visitor comments may be checked through an automated spam detection service. Activity Data Used: To deliver this functionality and record activities around site management, the following information is captured: user email address, user role, user login, user display name, WordPress.com and local user IDs, the activity to be recorded, the WordPress.com-connected site ID of the site on which the activity takes place, the site’s Jetpack version, and the timestamp of the activity. Some activities may also include the actor’s IP address (login attempts, for example) and user agent. Activity Tracked: Login attempts/actions, post and page update and publish actions, comment/pingback submission and management actions, plugin and theme management actions, widget updates, user management actions, and the modification of other various site settings and options. Retention duration of activity data depends on the site’s plan and activity type. See the complete list of currently-recorded activities (along with retention information). Data Synced (?): Successful and failed login attempts, which will include the actor’s IP address and user agent. Contact Form Data Used: The contact form submission data — IP address, user agent, name, email address, website, and message — is submitted to the Akismet service (also owned by Automattic) for the sole purpose of spam checking. The actual submission data is stored in the database of the site on which it was submitted and is emailed directly to the owner of the form (i.e. the site author who published the page on which the contact form resides). This email will include the submitter’s IP address, timestamp, name, email address, website, and message. Data Synced (?): Post and post meta data associated with a user’s contact form submission. The IP address and user agent originally submitted with the comment are synced, as well, as they are stored in post meta. Activity Tracked: The comment author’s name, email address, and site URL (if provided during the comment submission) are stored in cookies. Learn more about these cookies. Data Synced (?): All data and metadata (see above) associated with comments. This includes the status of the comment and, if Akismet is enabled on the site, whether or not it was classified as spam by Akismet. Likes This feature is only accessible to users logged in to WordPress.com. Data Used: In order to process a post like action, the following information is used: IP address, WordPress.com user ID, WordPress.com username, WordPress.com-connected site ID (on which the post was liked), post ID (of the post that was liked), user agent, timestamp of event, browser language, country code. Activity Tracked: Post likes. Mobile Theme Data Used: A visitor’s preference on viewing the mobile version of a site. Activity Tracked: A cookie (akm\_mobile) is stored for 3.5 days to remember whether or not a visitor of the site wishes to view its mobile version. Learn more about this cookie. Notifications This feature is only accessible to registered users of the site who are logged in to WordPress.com. Data Used: IP address, WordPress.com user ID, WordPress.com username, WordPress.com-connected site ID and URL, Jetpack version, user agent, visiting URL, referring URL, timestamp of event, browser language, country code. Some visitor-related information or activity may be sent to the site owner via this feature. This may include: email address, WordPress.com username, site URL, email address, comment content, follow actions, etc. Activity Tracked: Sending notifications (i.e. when we send a notification to a particular user), opening notifications (i.e. when a user opens a notification that they receive), performing an action from within the notification panel (e.g. liking a comment or marking a comment as spam), and clicking on any link from within the notification panel/interface. Protect Data Used: In order to check login activity and potentially block fraudulent attempts, the following information is used: attempting user’s IP address, attempting user’s email address/username (i.e. according to the value they were attempting to use during the login process), and all IP-related HTTP headers attached to the attempting user. Activity Tracked: Failed login attempts (these include IP address and user agent). We also set a cookie (jpp*math*pass) for 1 day to remember if/when a user has successfully completed a math captcha to prove that they’re a real human. Learn more about this cookie. Data Synced (?): Failed login attempts, which contain the user’s IP address, attempted username or email address, and user agent information. Search This feature is only available to sites on the Professional plan. Data Used: Any of the visitor-chosen search filters and query data in order to process a search request on the WordPress.com servers. Sharing Data Used: When sharing content via email (this option is only available if Akismet is active on the site), the following information is used: sharing party’s name and email address (if the user is logged in, this information will be pulled directly from their account), IP address (for spam checking), user agent (for spam checking), and email body/content. This content will be sent to Akismet (also owned by Automattic) so that a spam check can be performed. Additionally, if reCAPTCHA (by Google) is enabled by the site owner, the sharing party’s IP address will be shared with that service. You can find Google’s privacy policy here. Subscriptions Data Used: To initiate and process subscriptions, the following information is used: subscriber’s email address and the ID of the post or comment (depending on the specific subscription being processed). In the event of a new subscription being initiated, we also collect some basic server data, including all of the subscribing user’s HTTP request headers, the IP address from which the subscribing user is viewing the page, and the URI which was given in order to access the page (REQUEST*URI and DOCUMENT*URI). This server data used for the exclusive purpose of monitoring and preventing abuse and spam. Activity Tracked: Functionality cookies are set for a duration of 347 days to remember a visitor’s blog and post subscription choices if, in fact, they have an active subscription. --- ### [Saving to Invest – Terms of Use](https://savingtoinvest.com/saving-to-invest-terms-of-use/) **Published:** December 19, 2012 **Author:** Andy **Content:** PLEASE READ THESE TERMS OF USE published by the owners and operators of savingtoinvest.com (“we” or “us”). By using the information and content under this domain [savingtoinvest.com](https://savingtoinvest.com/) (the “Site”) and sub-sites you agree to abide by this agreement. Further, by visiting, using and/or submitting information to the Site you are accepting the following terms and conditions of this “Agreement” and our [Privacy Policy](https://savingtoinvest.com/privacy-policy/). **Your Compliance with this Agreement** You acknowledge that this Agreement is supported by reasonable and valuable consideration, the receipt and adequacy of which is hereby acknowledged. Without limiting the foregoing, you acknowledge that such consideration includes, without limitation, your ability to visit, use and/or submit information to the Site. You represent that you have the capacity to be bound by this Agreement, or if you are acting on behalf of a company or other entity, you have the authority to bind such company or entity. In order to determine your compliance with this Agreement, we may monitor your access and use of the Site in accordance with the Privacy Policy. **We Make No Representations or Warranties Regarding the Content** The content and all services and products associated with the site are provided to you on an “as-is” and “as available” basis. We make no representations or warranties of any kind, express or implied, as to the operation of the site or the information, content, materials, products or services included on or associated with the site. You expressly agree that your use of the site and all products and services included on or associated with the site is at your sole risk. We do not make any representations, warranties or guarantees, express or implied, regarding the accuracy, correctness, or completeness of the content or the services and products associated with the site, nor the safety, reliability, title, timeliness, completeness, merchantability, conformity or fitness for a particular purpose of the content or the services and products associated with the site. It is your sole responsibility to independently evaluate the accuracy, correctness or completeness of the content and the services and products associated with the site. We make no representation, warranty or guarantee that the content that may be available for downloading from the site is free of infection from any viruses, worms, trojan horses, trap doors, back doors, easter eggs, time bombs, cancelbots or other code or computer programming routines that contain contaminating or destructive properties or that are intended to damage, detrimentally interfere with, surreptitiously intercept or expropriate any system, data or personal information. The Content is intended only to assist you with financial decisions and is broad in scope and does not consider your personal financial situation. Your personal financial situation is unique and the information and advice may not be appropriate for your situation. Accordingly, before making any final decisions or implementing any financial strategy, we recommend that you obtain additional information and advice of your accountant and other financial advisors who are fully aware of your individual circumstances. The site has direct affiliate or commercial relationships with some companies that advertise on this site. So being an affiliate, we often provide reviews of products and services based wholly on our personal opinions. We are NOT paid for writing positive or biased reviews. We try our best to make sure that the information we give here is true and accurate, the rates and offers that we share with you may change without notice, so please visit the respective sites we mention, for more up to date information. The Site is controlled and offered by us from our facilities in the United States of America. We make no representations that the Site is appropriate or available for use in other jurisdictions. If you access or use the Site from other jurisdictions, then you do so by your own volition and are solely responsible for compliance with local law. **Your Access and Use of the Site** Your right to access and use the Site is personal to you and is not transferable by you to any other person or entity. You are only entitled to access and use the Site for lawful purposes and pursuant to the terms and conditions of this Agreement and the [Privacy Policy](https://savingtoinvest.com/privacy-policy/). You acknowledge and agree that we may modify or terminate the Services and any of its features at any time or terminate your access to them without notice to you. You acknowledge and agree that we shall not be liable to you or any third party as a result of any such modification or termination. You may discontinue use of the Service at any time without notice to us. Your access and use of the Site may be interrupted, from time to time, for any of several reasons, including, without limitation, the malfunction of equipment, periodic updating, maintenance or repair of the Site or other actions that we, in our sole discretion, may elect to take. We reserve the right to suspend or discontinue the availability of the Site and/or any portion or feature of the Site at any time in our sole discretion and without prior notice. Any action by you that, in our sole discretion: (i) violates the terms and conditions of this Agreement and/or the Privacy Policy; (ii) restricts, inhibits or prevents any access, use or enjoyment of the Site; or (iii) through the use of the Site, defames, abuses, harasses, offends or threatens, shall not be permitted, and may result in your loss of the right to access and use the Site. You shall not metatag, provide links to or frame the Site without our prior, express, written permission. **Our Intellectual Property Rights** The names “saving to invest” and “saving 2 invest,” and our graphics, logos, page headers, button icons, scripts, and service names are our trademarks or trade dress or the trademarks or trade dress of our affiliates or subsidiaries, in the United States and/or other countries (collectively, the “Proprietary Marks”). You may not use the Proprietary Marks without our prior, express, written permission, which permission may be withheld in our sole discretion. We make no proprietary claim to any third-party names, trademarks or service marks appearing on the Site. Any third-party names, trademarks, and service marks are property of their respective owners. The information, advice, data, software and content viewable on, contained in, or downloadable from, the Site (collectively, the “Content”), including, without limitation, all text, graphics, charts, pictures, photographs, images, line art, icons, and renditions, are copyrighted by, or otherwise licensed to, us or our Content suppliers. We also own a copyright of a collective work in the selection, coordination, arrangement, presentation, display and enhancement of the Content (the “Collective Work”). All software used on the Site (the “Software”) is our property or the property of our software vendors and is protected by United States and international copyright laws. Viewing, reading, printing, downloading or otherwise using the Content and/or the Collective Work does not entitle you to any ownership or intellectual property rights to the Content, the Collective Work or the Software. We aggressively enforce our DMCA rights. Copying without permission is unauthorized. You are solely responsible for any damage resulting from your infringement of our or any third party’s intellectual property rights regarding the Trademarks, the Content, the Collective Work, the Software and/or any other harm incurred by us or our affiliates as a direct or indirect result of your copying, distributing, redistributing, transmitting, publishing or using the same for purposes that are contrary to the terms and conditions of this Agreement. **AI-Assisted Content and Tools** Some articles on this Site are researched, drafted, or updated with the help of artificial intelligence tools. Every figure, deadline, and claim generated or assisted by AI is reviewed by a human editor against primary sources (such as the IRS, SSA, USDA, and Department of Labor) before publication, and the Content remains subject to the “no warranties” and “not personalized advice” sections above regardless of how it was produced. The Site may also use AI tools to generate or edit supporting images. Automated systems, including AI models and their operators, may access, index, and reference Content on the Site consistent with standard web crawling and citation practices; this does not grant any additional rights to reproduce, redistribute, or commercially exploit the Content beyond what is otherwise permitted under “Our Intellectual Property Rights” above. **Indemnity** You agree to indemnify and hold us and our employees and agents harmless from and against all liabilities, legal fees, damages, losses, costs and other expenses in relation to any claims or actions brought against us arising out of any breach by you of these Terms and Conditions or other liabilities arising out of your use of this Website. **Commenting Policy** All comments other than spam are welcome. Please keep your comments related to the specific blog post. We expect commentors to add value to the conversation. We also expect you to encourage, motivate, and help other readers. Excessive self-promotion, links, foul language, personal attacks against others, or other uncivilized actions will result in your comment not being approved. Also all comments on this site belong to the site owners and may be republished in other posts or forums. **General Information** The provisions of this Agreement are independent of and separable from each other, and no provision shall be affected or rendered invalid or unenforceable by virtue of the fact that for any reason any other or others of them may be invalid or unenforceable in whole or in part. The headings used in this Agreement are for the convenience of the parties only and shall not be used to interpret any term or provision of this Agreement. These Terms and Conditions shall be governed by and construed in accordance with the law of USA and you hereby submit to the exclusive jurisdiction of the USA courts. We reserve the right to make changes to these terms and conditions. You are encouraged to review the agreement and privacy policy whenever you visit the site. If users have any questions or suggestions regarding our terms and policies, please [contact me](mailto:admin@savingtoinvest.com?subject=SavingtoInvest_Privacy). --- ### [subscribe](https://savingtoinvest.com/subscribe/) **Published:** March 18, 2026 **Author:** Andy --- ### [Contact Us](https://savingtoinvest.com/contact-us/) **Published:** January 11, 2020 **Author:** Andy **Content:** **[Saving to Invest](https://savingtoinvest.com/)** is a personal finance focused blog that covers a wide spectrum of topics from unemployment to money to taxes to working to retired life. With over 1 million visitors per month and a broad presence across**[ Facebook](https://www.facebook.com/SavingtoInvest)**, **[Twitter](https://twitter.com/Saving2Invest)** and [**YouTube**](https://www.youtube.com/channel/UChQn-V_x8ISkyq9r7MJYmrw) we get a lot of questions and comments. If you have a specific question on a topic please leave a comment on that post or article. Otherwise drop me a comment below and my team or I will respond as soon as we can. Don’t forget to [subscribe for the latest articles](/subscribe). **STOP AND *Note to Advertisers or Guest Post Requestors*** *– Please see **[this page for advertising](https://savingtoinvest.com/about/#advertising)**[**, guest post and sponsored posts**](https://savingtoinvest.com/about/#advertising). In particular review the guidelines and what advertising options are available. I will only respond to legitimate inquires.* [← Back](/wp-cron.php?doing_wp_cron=1789581831.4171049594879150390625) #### Thank you for your response. ✨ ![]() ![](data:image/gif;base64,R0lGODlhAQABAAD/ACwAAAAAAQABAAACADs=) Name(required) Email(required) Message(required) I have Reviewed the Advertising and Guest Post Sponsorship Page Referenced Above(required) 1. Contact UsSubmitting form --- Δ --- ### [Lower Home Mortgage Payments With The Best New Loan and Refinance Rates](https://savingtoinvest.com/best-mortgage-rates-for-refinancing-and-new-home-loans/) **Published:** March 26, 2011 **Author:** Andy **Content:** Mortgage rates are ridiculously low nowadays thanks to significant federal government policies to combat the Coronavirus/COVID-19 economic fallout. Coupled with mild inflation and already low interest rates thanks to federal reserve actions to keep markets liquid (i.e quantitative easing) we can expect low interest rates for several more years. While this is not great news for your savings it is great news if you are getting a **new mortgage** or just looking to **refinance** and lower your monthly payments. Like any major financial decision though you want to shop around to get the best rates, lowest closing costs and great customer service. You will also find a loan type comparison table which hopefully makes your search for the right mortgage easier!\[table id=18 /\] ---