The “One Big Beautiful Bill” (OBBB) and inflation adjustments shape 2026 taxes with permanent extensions and enhancements.
Major Updates:
- Standard Deduction: $32,200 (joint), $16,100 (single), $24,150 (HoH)—higher than prior years.
- Child Tax Credit: Up to $2,200 per qualifying child (partially refundable ~$1,700).
- New/Enhanced Deductions: Tips, overtime pay (certain workers), auto loan interest, extra for seniors 65+ (~$6,000), higher SALT caps in some contexts.
- Retirement: Higher limits as above; pass-through business deductions permanent.
- Other: Employer childcare credit boosted; energy credit adjustments.
Smart Planning Moves:
- Maximize new deductions with documentation.
- Bunch itemized expenses if beneficial vs. standard deduction.
- Contribute to retirement/HSAs before deadlines.
- Withholding adjustments to avoid under/overpayment.
- Self-employed/QBI optimization.
- High-income strategies: Roth conversions, timing income/capital gains.
Filing Tips: Use software or professionals for complexity. Track records now. Stay updated on state conformity.
Proactive planning minimizes liability and maximizes refunds. (Includes bracket tables, examples, checklists, and deadlines.)
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