Tax Planning
Tax Planning Strategies Under the One, Big, Beautiful Bill: What to Know for 2026
With sweeping tax reforms now in effect under the One, Big, Beautiful Bill (OBBB), taxpayers have new opportunities—and challenges—for planning income, deductions, and credits in 2026.
By NomadicTax Research Team • 5-8 min read • February 25, 2026
## Introduction
The One, Big, Beautiful Bill, signed into law on July 4, 2025 (Public Law 119-21), introduces major reforms that are affecting individual and business tax planning for 2025 and 2026. As these changes become effective, being strategic is more important than ever. Below are key planning strategies to consider:
## Key Changes That Affect Planning
| Change | What’s New for 2026 | Why It Matters |
|--------|-----------------------|----------------|
| **Inflation adjusted thresholds** | Standard deductions rise (e.g. $16,100 for single filers; $32,200 married filing jointly), foreign earned income exclusion increases to $132,900, and other limits shift. ([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)) | Can push income into different brackets—deciding when to recognize income or defer expenses gains importance. |
| **Expanded Health Savings Accounts (HSAs)** | Bronze and catastrophic plans become HSA-compatible from Jan. 1, 2026. Direct primary care (DPC) arrangements may now be covered. ([irs.gov](https://www.irs.gov/newsroom/one-big-beautiful-bill-act-of-2025-provisions?utm_source=openai)) | More taxpayers become eligible for HSA contributions, creating tax-deferred savings and tax-free withdrawals for medical expenses. |
| **Large employer tax credits & deductions** | Adoption credit is now partially refundable; enhanced credits for rural opportunity zones; employer-provided child care credit jumps dramatically. ([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)) | These benefit both businesses planning their calendar year actions and individuals adopting children or investing in rural zones. |
## Actionable Strategies
### Accelerate or Defer Income
- If you're near a higher tax bracket threshold, consider deferring income into 2026 to take advantage of slightly higher standard deductions and thresholds. The shift may reduce marginal tax rates.
- For self-employed people or small business owners: match business expenses and capital investments strategically to when they yield the best tax relief.
### Maximize HSA Opportunities
- If you currently have a bronze or catastrophic health plan, confirm whether your plan becomes HSA-eligible in 2026; if so, contribute early in the year to maximize tax advantages.
- Use HSA funds for direct primary care fees where permitted.
### Take Advantage of New Deductions & Credits
- The **Senior Deduction** (for those 65+) adds $6,000 per eligible individual (or $12,000 for couples) to your deduction. This phases out for Modified AGIs above $75,000 (single) or $150,000 (joint). ([irs.gov](https://www.irs.gov/newsroom/2026-filing-season-updates-and-resources-for-seniors?utm_source=openai))
- Review eligibility for the refundable portion of the **Adoption Credit**, experimentation in rural opportunity zone investment laws, and employer childcare credits—which are vastly expanded.
### Timing Matters
- Certain OBBB provisions (e.g. reporting on interest from passenger automobile loans, tips/overtime deductions) begin in tax years 2025–2026. Be alert to transitional rules and filing requirements. ([irs.gov](https://www.irs.gov/newsroom/one-big-beautiful-bill-act-of-2025-provisions?utm_source=openai))
- Adjust withholding or estimated tax payments where thresholds have shifted.
## Example Scenario
Sarah, age 68, married filing jointly. In 2026, her AGI is projected around $155,000. Under the OBBB:
- She qualifies for the additional $6,000 senior deduction since AGI just over the phase-out for singles but under the joint limit.
- She has a bronze plan that now becomes HSA-eligible. She opens an HSA contribution at max level early in the year.
- She adopts a child, qualifying for the adoption credit, including its refundable portion.
These moves would yield tax savings that would not have been available under prior law.
## Final Thoughts
Staying proactive is key. Review your current tax bracket projections, eligibility for deductions like HSAs, senior deductions, and credits introduced or expanded by OBBB. For personal or business advisors, mapping out income and expenses across tax years and making use of transitional relief where available can yield real savings.
**For full details**: Refer to IRS Revenue Procedure 2025-32 and related Notices including Notice 2026-5. ([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))