Tax Planning

Maximizing US Tax Credits Under the One, Big, Beautiful Bill: A Planning Guide

A detailed walk through newly enhanced tax credits and deductions under the US One, Big, Beautiful Bill and how individuals can structure finances wisely to take full advantage.

By NomadicTax Research Team • 5-8 min read • June 13, 2026

## What is the One, Big, Beautiful Bill (OBBB)? Enacted recently, the OBBB introduced sweeping changes to US tax law, altering deductions, credits, tax rates, and other key provisions. These changes principally benefit working families, seniors, homeowners, and individuals earning tips or overtime. Making filing decisions without understanding these updates can mean missing out on valuable tax savings. ([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)) ## Key Credit and Deduction Changes Here are some of the major updates under OBBB for **tax year 2026**: - Foreign Earned Income Exclusion increased to **$132,900**, up from $130,000. ([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) for taxpayers with three or more qualifying children now has a maximum of **$8,231** (up from $8,046). ([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)) - Adoption credit increased (limit now $17,670; refundable portion max $5,120). ([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)) - Increase in standard deduction: married filing jointly $32,200; single filers $16,100; heads of households $24,150. ([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)) ## Strategic Tax Planning Tips **1. Adjust withholding now** Use the **IRS Tax Withholding Estimator**, which has been updated to reflect OBBB changes (no tax on tips, overtime, car loan interest, enhanced deduction for seniors). Adjust your Form W-4 or equivalent so you won’t underpay or overpay. ([irs.gov](https://www.irs.gov/newsroom/tax-withholding-estimator-now-reflects-changes-under-the-one-big-beautiful-bill?utm_source=openai)) **2. Time life events for maximum credit** Events like adoptions, child care expenses, or large charitable donations may provide enhanced credits if incurred during 2026. Time related expenditures to year-end to ensure eligibility under the new limits. **3. Think long-term savings, especially for seniors and homeowners** If you're nearing retirement, see how enhanced deduction options affect Roth vs Traditional IRA contributions or RMDs (Required Minimum Distributions). Home improvements related to energy efficiency may carry new incentives under OBBB—explore details. **4. Beware of scams and misinformation** With complex changes, unscrupulous preparers may make false promises—“fast refunds,” made-up credits, etc. Always verify eligibility and work with credentialed professionals. Use trusted sources—IRS.gov provisions. ([irs.gov](https://www.irs.gov/newsroom/irs-reminds-taxpayers-watch-out-for-preparers-promising-quick-cash-fast-refunds-under-new-one-big-beautiful-bill-tax-changes?utm_source=openai)) ## Practical Example Meet **Maria**, a single parent with two children. In prior years, her earned income put her ineligible for certain family credits, but under OBBB, she qualifies for higher EITC. By bundling home energy improvements in fall 2026 and making charitable gifts before year-end, she maximizes her deductions. She also adjusts withholding via IRS estimator to avoid surprise tax liability when filing for 2026. ## What to Watch Moving Forward - Final regulations from IRS on some OBBB items: remittance transfer tax (1%), Section 987 regulations (foreign currency gains/losses), depreciation rules under §168(n). Watching for timelines and guidance. ([irs.gov](https://www.irs.gov/newsroom/treasury-irs-issue-proposed-regulations-on-the-new-remittance-transfer-tax-established-under-the-one-big-beautiful-bill?utm_source=openai)) **Bottom line:** OBBB offers real opportunities to reduce tax burdens, but only if one plans ahead, documents carefully, and uses updated tools. Acting now ensures you’re not left behind.