2026 Personal Tax Filing Guide for Raleigh NC Residents: Deductions, Credits, and Common Mistakes to Avoid

Filing your 2025 federal income tax return in 2026 brings important changes, new deductions and credits, and potential pitfalls if you go it alone. Whether you’re an employee, a freelancer, a retiree, or self-employed, understanding the latest rules, IRS guidance, and tax planning strategies will help you file accurately and maximize your refund or minimize what you owe. This guide is designed for Raleigh NC residents preparing for the 2026 tax season.

When to File and Key Deadlines

The IRS announced that the 2026 federal tax filing season opens in late January and ends April 15, 2026, for most taxpayers. That’s also the deadline to file your 2025 tax return and pay any tax due. The IRS offers online tools to help plan and prepare your return before submitting it electronically.

Missing deadlines can result in penalties and interest, especially if you owe taxes. For many taxpayers, filing early and e-filing with direct deposit for refunds speeds up processing and reduces errors.

What’s New for 2026 Filing: Key IRS Changes You Need to Know

Expanded Deductions and Credits Under the New Tax Law

Congress passed the One, Big, Beautiful Bill Act (OBBBA) in July 2025, which affects the 2025 tax year returns you file in 2026. This legislation introduces several changes that could reduce taxable income or boost refunds, but only if applied correctly.

Major Updates Include:

• Higher Standard Deductions:The IRS increased the standard deduction amounts for tax year 2026 to reflect inflation: $16,100 for single filers and $32,200 for joint filers. These amounts apply to federal returns and help lower your taxable income.

• Expanded Child Tax Credit:The child tax credit increased, providing more relief for families with qualifying dependents.

• New Deductions for Tips and Overtime:Certain taxpayers who receive tips or overtime income may claim new deductions of up to $25,000 for tips and up to $12,500 ($25,000 for joint filers) for overtime pay.

• Temporary Auto Loan Interest Deduction:Qualified auto loan interest may be deductible up to $10,000 if the vehicle meets certain criteria.

• Bonus Deduction for Seniors:Individuals aged 65 and older can claim an extra deduction for moderate incomes.

These opportunities can significantly influence your tax liability, but qualifying for these benefits often involves nuanced eligibility rules. Getting them right ensures you don’t leave money on the table.

North Carolina State Tax Considerations

In addition to federal tax rules, North Carolina residents must file a state return. North Carolina uses a flat income tax rate (which is scheduled to gradually drop toward 3.99% by 2027) and conforms to many federal definitions of income.

Because the state return is based on your federal adjusted gross income, optimizing your federal filing with the right deductions and credits may also reduce your state taxes.

Common Tax Filing Mistakes Raleigh NC Residents Should Avoid

Even with IRS filing tools available, DIY tax preparation can lead to costly errors. Some of the most frequent mistakes include:

1. Overlooking Eligible Deductions and Credits

Failing to claim new deductions (like for tips, overtime, or auto loan interest) or the expanded child tax credit usually means paying more tax than necessary.

2. Incorrect Withholding

Not updating your W-4 after a major life or income change can lead to underpayment or smaller refunds than expected. Consulting IRS withholding guidelines ensures your withholdings are appropriate and avoids surprises.

3. Mistakes on Income Reporting

With wages, freelance income, investment income, and gig work more common than ever, misreporting any income items—especially 1099 income or digital assets—can trigger IRS notices or audits.

4. Ignoring Records and Documentation

Not organizing essential tax documents (W-2s, 1099s, records of deductions, receipts) before filing often leads to guesswork, which can result in mistakes that cost you later.

Why Hiring a Professional Tax Preparer Is Often Better Than DIY

The IRS encourages taxpayers to gather forms and review guidance before filing, but not all taxpayers have the tax knowledge to interpret complex rules—especially when law changes are involved.

A professional tax preparer, like Mims Financial Services, brings several advantages:

Expert Interpretation of IRS Rules

Mims Financial Services stays current with IRS updates, including the most recent deduction and credit changes under the OBBBA. We ensure all eligible benefits are identified and claimed properly.

Maximizing Refunds and Minimizing Risk

Professionally prepared returns help reduce errors that can lead to audits, penalties, or delayed refunds. A skilled preparer can also offer proactive tax planning strategies tailored to your financial situation.

Personalized Support

Whether you’re juggling multiple income sources, have investment or rental income, or face major life or income changes, professional guidance ensures your return is accurate and optimized for your goals.

Smart Filing Starts with the Right Preparation

2026 personal tax filing for Raleigh NC residents comes with opportunities to save through expanded deductions and credits, but also complexities that make DIY filing risky for many taxpayers. With updated IRS guidance, inflation-adjusted thresholds, and new eligibility requirements, professional assistance can make a significant difference in your tax outcome.

Working with Mims Financial Services means more than just filing, it’s a strategic approach to Raleigh NC tax preparation that helps you protect your finances, reduce stress, and ensure compliance with both federal and state tax laws.