Tax Planning
How to Optimize Your U.S. Taxes Under the "One, Big, Beautiful Bill"
The new One, Big, Beautiful Bill (OBBB) introduces sweeping changes—early rate cuts, larger deductions for seniors, and new treatment of charitable donations. Here’s how individuals can plan accordingly and maximize benefits.
By NomadicTax Research Team • 5-8 min read • June 24, 2026
## Understanding Key OBBB Changes for Individuals
The **One, Big, Beautiful Bill**, signed into U.S. law (Public Law 119-21) in July 2025, includes many provisions effective starting January 1, 2026. Some of the most impactful changes for individuals and workers are:
- **Lower tax rates & higher standard deductions**: Single filers benefit from an increase in standard deductions to **$16,100**; married filing jointly moves to **$32,200**. ([irs.gov](https://www.irs.gov/newsroom/one-big-beautiful-bill-provisions-individuals-and-workers?utm_source=openai))
- **Marginal rate thresholds adjusted**: The 10%, 12%, 22%, 24%, 32%, 35%, and 37% brackets have been shifted upward. Individuals need to evaluate where their income now falls. ([irs.gov](https://www.irs.gov/newsroom/one-big-beautiful-bill-provisions-individuals-and-workers?utm_source=openai))
- **Enhanced deduction for seniors**: Individuals aged **65 and over** may claim an **additional $6,000 deduction** (or $12,000 for married couples) through 2028, subject to income phase-outs. ([irs.gov](https://www.irs.gov/newsroom/check-your-eligibility-for-the-new-enhanced-deduction-for-seniors?utm_source=openai))
- **Charitable giving & deductions changed**: Starting in 2026, non-itemizers can claim a **qualified charitable deduction** of up to **$1,000** (or $2,000 for joint filers) for cash donations, even without itemizing; also, the 60% cap on cash contributions to public charities is now permanent. ([irs.gov](https://www.irs.gov/newsroom/understanding-the-one-big-beautiful-bill-individual-tax-provisions-youtube-video-text-script?utm_source=openai))
## Tax Planning Strategies
To make the most of these changes, consider the following action items:
- **Estimate your income carefully**: Given the adjusted brackets, small shifts in income may push you into higher marginal rates. Use withholding calculators or tax planning software to simulate impact.
- **Senior taxpayers should recalibrate**: If you're 65+, the extra $6,000 deduction can reduce taxable income significantly—especially when approaching bracket thresholds.
- **Charity contributions timing**: If you’re near the 60% limit, plan when to give. Also non-itemizers might now benefit from giving cash donations even if they don’t itemize.
- **Retirement & savings vehicles**: Inflation-adjusted limits (e.g., 401(k), IRA) are unchanged or marginally increased; review your contribution plans accordingly. (Though not directly in this OBBB summary, these still interact with overall tax burden.)
## Examples of Smart Moves
1. **A senior couple (65+)** with $90,000 taxable income can take both the higher standard deduction (for married filing jointly) and the senior bonus deduction, possibly reducing taxable income by nearly $40,000 depending on bracket – which could shift them down two tiers and save thousands in tax.
2. **A middle-income single filer** making charitable contributions but not itemizing: if planning to donate cash, do this in 2026 to claim up to $1,000 as a qualified charitable deduction under the new rule.
3. **Wage earners** should adjust their withholding early. Because standard deductions and brackets changed, those who previously paid more tax due to under-withholding may see benefits—but need to update W-4 with employers to avoid overpaying or big refunds later.
## Actionable Next Steps
- Review your **2025 and 2026 projected income** to see how new rates/thresholds affect you.
- If you’re 65+, make sure you claim the enhanced deduction when filing your 2025 tax return.
- Keep records of any charitable donations made in 2026 even if you don’t itemize—you might be eligible for the qualified deduction for non-itemizers.
- Consult a tax professional early in 2026 for complex situations, like large capital gains, to plan around AMT thresholds that also changed under OBBB.
With smart planning, these tax changes offer real opportunities to reduce your tax burden. But with shifting parameters, moving carefully and getting advice is essential.