Tax Planning

How to Maximize Credits & Deductions After the ‘One, Big, Beautiful Bill’: A Tax Planning Playbook

With inflation adjustments and new provisions under the One, Big, Beautiful Bill (OBBBA) now effective, many taxpayers can optimize deductions, credits and filing strategies through strategic planning.

By NomadicTax Research Team • 5-8 min read • November 20, 2025

## Overview of Key Changes in 2025-2026 The One, Big, Beautiful Bill Act (Public Law 119-21) has introduced sweeping tax law reforms—including locking in permanent tax rate tables for individuals, enhanced credits, and more generous standard deductions. ([irs.gov](https://www.irs.gov/irb/2025-45_IRB?utm_source=openai)) The IRS’s **Revenue Procedure 2025-32** outlines inflation-adjusted values for 2026 that impact estate tax, earned income credit, and adoption credits, among others. ([irs.gov](https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill?utm_source=openai)) ### What to Look For - **Standard deduction increases:** For 2026, standard deductions are $32,200 for joint filers, $16,100 for singles, and $24,150 for heads of households. ([irs.gov](https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill?utm_source=openai)) - **Estate tax exclusion rise:** Up to **$15,000,000** in 2026 from previous amount for decedents’ estates. ([irs.gov](https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill?utm_source=openai)) - **Earned Income Tax Credit (EITC)** and **child tax credit** are both increased, with higher phase-out thresholds. ([irs.gov](https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill?utm_source=openai)) ## Tax Planning Strategies ### 1. Timing Income and Deductions - Accelerate deductions like charitable contributions into 2025 if you expect to be in lower tax bracket in 2026. - Defer income where possible to 2026 if you’ll benefit from higher thresholds, credits, or deductions. ### 2. Make Adoption & Child Credits Work Harder - If you or a dependent are going through adoption, note that the maximum adoption credit in 2026 is **$17,670**, with a refundable portion of **$5,120**. ([irs.gov](https://www.irs.gov/irb/2025-45_IRB?utm_source=openai)) - Child tax credit has increased to **$2,200** per child for 2026. Position your eligibility accordingly. ([irs.gov](https://www.irs.gov/irb/2025-45_IRB?utm_source=openai)) ### 3. Evaluate Retirement Contributions - Increase your **401(k)** contribution to the new limit of **$24,500** for 2026 (up from $23,500 in 2025). ([irs.gov](https://www.irs.gov/newsroom/inflation-adjusted-tax-items-by-tax-year?utm_source=openai)) - For IRAs and other qualified plans, keep an eye on gross-income and MAGI thresholds that phase out certain credits like the Lifetime Learning Credit. ([irs.gov](https://www.irs.gov/newsroom/inflation-adjusted-tax-items-by-tax-year?utm_source=openai)) ## Practical Checklists - Ensure your **tax brackets** for 2026 are mapped out so you can see how much income may be taxed at each rate. Use the updated thresholds. - Track your **earnings and deductions** during 2025 to adjust behavior before year-end—defer income, pull in big expenses where beneficial. - Review eligibility for **AMT (Alternative Minimum Tax)**, especially for high-income individuals—it has its own thresholds shifting under OBBB. ([irs.gov](https://www.irs.gov/irb/2025-45_IRB?utm_source=openai)) ## Case in Action Alex and Jordan are married filing jointly. In 2025, their combined income pushes them toward the top tax rate (37%), but they expect lower income in 2026 due to retirement. They: - Shifted a large portion of bonuses to early 2025 to maximize deductions and use the 2025 standard deduction. - Made charitable contributions early in 2025, anticipating tighter cash flow in 2026. - Funded retirement contributions fully in 2026, leveraging the higher 401(k) limit and improved child/adoption credits. ## Bottom Line The OBBBA reforms grant many taxpayers enhanced incremental benefits—but only if you proactively plan. Keep tabs on: - your projected income, - lasting changes (e.g., tax rate schedules, standard deductions, estate exclusions), and - when deductions or income shifts make sense. Work with your tax advisor to craft strategies around the dates of changes, tax home, and your filing status for **maximum impact**.