Overview
The One, Big, Beautiful Bill (OBBB) signed into law on July 4, 2025, introduces sweeping tax changes affecting individuals, families, and seniors. Two particularly powerful provisions gaining attention in mid-2026 are:
- Trump Accounts: new child investment/retirement accounts with starter contributions.
- Enhanced deductions for seniors, including increased standard and additional deductions under inflation adjustments. (irs.gov)
Trump Accounts: What You Should Know
| Feature | Details |
|---|---|
| Who’s eligible | U.S. children born between Jan 1, 2025 and Dec 31, 2028, or those under age 18 with a Social Security Number. (irs.gov) |
| Starter contribution | $1,000 pilot contribution from Treasury for each eligible child. (irs.gov) |
| Annual contributions | Up to $5,000/year from individuals or employers; employer contributions up to $2,500 tax-free for employees. (irs.gov) |
| Investment & withdrawal | Funds must be invested in permitted mutual/ETF types; withdrawals generally disallowed until child turns 18; thereafter treated like a traditional IRA. (irs.gov) |
Actionable insights
- If you have a child born in the eligible window, set up a Trump Account before July 4, 2026, when contributions become permitted. (irs.gov)
- Prioritize an election (Form 4547, Trump Account Election) electronically via your IRS Individual Account to access the starter contribution. (irs.gov)
- Keep contribution limits in mind to avoid excess employer contributions or tax mistakes.
Seniors & Standard Deduction Changes
The IRS has adjusted inflation-indexed thresholds under OBBB, increasing benefits for older taxpayers. Key updates for tax year 2026 (returns filed in early 2027):
- Standard deduction for single filers or married filing separately: $16,100. (irs.gov)
- Additional standard deduction (age 65 or older, blind or both): approximately $2,050 (single or head of household), doubled if both older and blind; married filing separately analogous per person. (irs.gov)
Practical advice for seniors
- Review all sources of income including Social Security and pension; the new senior deduction may offset taxable income above standard thresholds.
- If married, coordinate eligible deductions for both spouses—each qualifies separately for age/blind status.
- Consider itemizing only if your total itemized deductions exceed the adjusted standard threshold.
Real-World Examples
Example 1 – Family with Young Children Sarah has two children born in 2025 and 2027. By completing Form 4547, she gets $1,000 starter contributions per child. She also contributes $5,000 from her earnings plus $2,500 from her employer towards each child’s Trump Account, reducing her taxable income thanks to the non-taxable employer portion.
Example 2 – Senior Couple Filing Jointly Mark and Joyce are both age 67. Each can claim the additional standard deduction for being age 65+, plus any applicable blind status. With OBBB inflating standard deductions for married couples filing jointly (about $32,200 in 2026), these enhancements substantially reduce taxable income compared to pre–OBBB rules. (irs.gov)
Takeaway
These two provisions—Trump Accounts and senior deduction enhancements—represent significant tax planning opportunities with clear government support and infrastructure behind them. Act quickly to elect Trump Accounts, optimize senior deductions, and stay tuned for related regulations and guidance under OBBB. Keeping up with deadlines and documentation will ensure you reap maximum benefit.