Tax Planning
Top Tax Planning Strategies Under the ‘One, Big, Beautiful Bill’ for 2026
Discover how individuals and families can leverage recent inflation adjustments and new credits under the One, Big, Beautiful Bill to optimize deductions, maximize refunds, and plan ahead for 2027.
By NomadicTax Research Team • 5-8 min read • July 1, 2026
## Introduction
The **One, Big, Beautiful Bill (OBBBA)** passed in mid-2025 brings sweeping changes that are now fully in effect for tax year 2026. With significant inflation adjustments, new credits, and modified tax treatment of overtime, tips, and car-loan interest, now is the time to update your planning strategies.
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## Key New Adjustments to Know
| Area | What’s Changed in 2026 |
|---|---|
| **Standard Deduction** | Married filing jointly increased to **$32,200**; single or married filing separately: **$16,100**; heads of household: **$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)) |
| **Marginal Rates** | Top rate (37%) remains but brackets shifted with higher thresholds like $640,600 for singles; lower brackets bumped too. ([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)) |
| **Estate & Adoption Credits** | Estate tax exclusion jumped to **$15,000,000**; adoption credit increased to **$17,670**, with up to **$5,120** refundable. ([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)) |
| **Foreign Earned Income Exclusion** | Now **$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)) |
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## Planning Insights & Actions You Can Take
### Maximize Credits & Deductions
- If you have eligible adoptions in 2025 or 2026, claim the **enhanced adoption credit**. If you expect large medical or childcare expenses, ensure they are documented clearly to benefit from employer-provided childcare credits—expanded under OBBBA. ([irs.gov](https://www.irs.gov/newsroom/one-big-beautiful-bill-provisions-individuals-and-workers?utm_source=openai))
- High-income earners should compare whether **itemizing deductions** still makes sense, given the amplified standard deduction.
### Income & Withholding Strategy
- With new brackets, shifting income (e.g. bonuses, asset sales) into lower rate thresholds may reduce marginal tax rates. Defer income if possible into a year where your income may be lower.
- Use the IRS’s updated **Tax Withholding Estimator**, reflecting OBBBA changes, to adjust your withholding and avoid surprises. ([irs.gov](https://www.irs.gov/newsroom/one-big-beautiful-bill-provisions-individuals-and-workers?utm_source=openai))
### Retirement & Savings Moves
- Contribution limits for **IRAs**, **401(k)s**, and SIMPLE plans have increased. If over 50, higher catch-up contributions are allowed. Max these out if you can. ([irs.gov](https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500?utm_source=openai))
### Example Scenario
- *Samantha*, married filing jointly, joint income $210,000. She normally itemizes mortgage interest and state taxes, but her deductions total $28,000. Her standard deduction is now $32,200 (for MFJ)—so unless itemized deductions exceed that, she’s better off taking the standard deduction.
- *Jake*, single with $140,000 income, doing a Roth IRA conversion. He should calculate if pushing income into 2026 (when bracket thresholds are higher) may mean lower tax on the conversion.
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## Conclusion
The changes are substantial under OBBBA for 2026: higher thresholds, new credits, and expanded deductions. Reviewing your tax bracket, deductions vs standard, eligibility for new credits, and optimal timing of income or expenses can lead to meaningful savings. Working with a tax professional to review your specific situation is highly encouraged.