5 ways the ‘Big Beautiful Bill’ could impact filing your 2026 NC taxes
The “One Big Beautiful Bill” is set to change how North Carolinians file their returns this year.
The legislation adds deductions for things like tips and overtime pay, creates new breaks for seniors, and expands options for charitable write-offs.
Here’s what you need to know to file your taxes this year.
2026 federal tax changes
Here are just a few of the new tax deductions and credits included in the “One Big Beautiful Bill,” according to the IRS:
- 1. No tax on tips and overtime: Workers who receive tips can deduct up to $25,000 of qualified tip income on their federal return. You can also deduct part of your overtime pay (the extra half-time beyond normal hours) – up to $12,500 for individuals or $25,000 for couples filing jointly.
- 2. Car loan interest deduction: Interest paid on certain new U.S.-assembled auto loans may be deductible up to $10,000 a year.
- 3. Extra deductions for seniors: People 65 and older can claim an additional $6,000 deduction (or $12,000 for couples), on top of the standard deduction.
- 4. Expanded charitable deduction: Starting in 2026, even taxpayers who don’t itemize can deduct up to $1,000 ($2,000 for joint filers) in cash donations.
- 5. Higher standard deduction and other credit increases: Standard deduction amounts are raised for inflation, and credits like the Child Tax Credit are increased under the law’s changes.
NC tax refunds
Most tax refunds arrive in under 21 days after the IRS approves your return. If you file electronically, you can start tracking your refund within 24 hours using the IRS2Go app or the “Where’s My Refund?” tool.
The fastest way to get your money is to file online and choose direct deposit, which lets the IRS send your refund straight to your bank account.
Delays can happen if a return is mailed, contains errors, is flagged for fraud or needs extra review. In those cases, the IRS will reach out by mail if more information is needed.
Portions of this story were previously published in The Charlotte Observer.
This story was originally published January 14, 2026 at 9:23 AM with the headline "5 ways the ‘Big Beautiful Bill’ could impact filing your 2026 NC taxes."
