Tax Planning
Tax Planning Strategies After the One, Big, Beautiful Bill: Maximizing Your 2026 Deductions
With recent law changes under the One, Big, Beautiful Bill, 2026 brings sharper deductions and enhanced tax benefits—learn how to align your plans now.
By NomadicTax Research Team • 5-8 min read • May 31, 2026
## An Overview of Recent Changes
Legislation passed in 2025—known as the *One, Big, Beautiful Bill* (OBBB)—introduced sweeping changes that took effect in 2025 and 2026. Key among them are increased standard deductions, new deduction categories (towards tips, overtime, car loan interest), and expanded eligibility for existing benefits.([irs.gov](https://www.irs.gov/newsroom/one-big-beautiful-bill-act-of-2025-provisions?utm_source=openai))
This article walks you through actionable tax planning strategies to help you make the most of these changes.
## Prioritize Filing Status and Claiming the Right Standard Deduction
- **Understand the new rates:** For tax year 2026, standard deduction is now $32,200 for married filing jointly, $16,100 for single filers, 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))
- **If your itemized expenses exceed the standard deduction, consider itemizing**, especially with new deductions available even for standard deduction filers (e.g., for seniors, tips, overtime, car loan interest).([irs.gov](https://www.irs.gov/newsroom/new-and-enhanced-deductions-for-individuals?utm_source=openai))
## Leverage New Deductions: Seniors, Tipped Workers, Overtime, Car Loans
- **Seniors (65+):** Eligible for an additional $6,000 deduction per person (phases out at MAGI above $75,000 single / $150,000 joint).([irs.gov](https://www.irs.gov/newsroom/2026-filing-season-updates-and-resources-for-seniors?utm_source=openai))
- **Tipped income:** You can now deduct up to $25,000 for qualified tips, even if taking standard deduction, with phaseouts for higher earners.([irs.gov](https://www.irs.gov/newsroom/new-and-enhanced-deductions-for-individuals?utm_source=openai))
- **Qualified overtime:** Individuals eligible for a deduction up to $12,500 ($25,000 for joint filers).([irs.gov](https://www.irs.gov/newsroom/new-and-enhanced-deductions-for-individuals?utm_source=openai))
- **Car loan interest:** Deduct up to $10,000 in qualified passenger‐vehicle loan interest.([irs.gov](https://www.irs.gov/newsroom/new-and-enhanced-deductions-for-individuals?utm_source=openai))
## Adjust Retirement Savings and Account Contributions
- **401(k), IRA, SIMPLE, and catch-up limits** have all been increased for 2026. Make sure you're contributing up to the new limit especially if maximizing retirement savings is among your priorities.([irs.gov](https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500?utm_source=openai))
## Consider Health Savings Account (HSA) Opportunities
- **Expanded HSA eligibility**: As of January 1, 2026, bronze and catastrophic health plans (even outside an Exchange) are now HSA-compatible. Also, telehealth and remote care services before hitting HDHP deductibles are now permanently allowed. Finally, eligible individuals using Direct Primary Care arrangements may contribute and use HSA funds for certain periodic DPC fees.([irs.gov](https://www.irs.gov/newsroom/treasury-irs-provide-guidance-on-new-tax-benefits-for-health-savings-account-participants-under-the-one-big-beautiful-bill?utm_source=openai))
## Example: A Couple Planning for 2026
| Scenario | Without OBBB Changes | With OBBB Changes |
|---|---|---|
| Married Filing Jointly, both 65+, income $160,000 | Standard deduction ~$32,000; no senior-specific deduction; taxed on tips & overtime in taxable income | Standard deduction $32,200 + $12,000 senior deduction; ability to deduct qualified tips & overtime; reduced AGI phaseouts impacting tax owed |
## Action Steps to Take Now
1. **Review your pay sources** to identify where tips or overtime are reported—track carefully.
2. **Check vehicle financing** to see if your auto loan qualifies for interest deduction.
3. **Analyze coverage** for 2026 health plans—if you have a bronze or catastrophic plan, confirm HSA compatibility.
4. **Maximize retirement contributions** before year-end to new increased limits.
5. **Estimate your MAGI** to project any phaseouts (tips, seniors’ extra deduction).
## Bottom Line
The OBBB’s changes open up **new windows of opportunity** to reduce your tax liability in 2026—especially for seniors, tipped and hourly workers, and those with new medical or auto expenses. With smart planning and early implementation, you could retain significantly more of your income.