One Big Beautiful Bill – 5 Updated Tax Benefits for 2026
It’s only been a few months since the One Big Beautiful Bill Act (OBBBA) was signed into law, yet it already feels like much longer—perhaps because of the relentless pace of economic, market, and geopolitical change. To help clients stay informed, I’ve outlined five updated tax benefits taking effect in 2026 that may offer meaningful planning opportunities - some of these items also apply to 2025 so you may have time to make an impact to your taxes this year. As always, this is a general overview. Please consult with me or your CPA before making any changes to your tax or investment strategy.
1. Senior Deduction: Extra $6,000 for Age 65+
For taxpayers age 65 or older, OBBBA introduces a new deduction of $6,000 per filer beginning in 2026, with phaseouts starting near $75,000 of adjusted gross income (single) or $150,000 (married). This was designed to offset the rising tax burden on retirees whose Social Security benefits have become increasingly taxable. For those in the early stages of retirement, this extra deduction can provide an ideal window to consider Roth conversions. Roth assets grow tax-free, are not subject to required minimum distributions (RMDs), and can reduce future taxable income during retirement. Converting IRA or 401(k) balances while in a lower tax bracket, paired with this new deduction, can meaningfully improve long-term after-tax income.
2. “Trump Account” for Newborns – Watch for 2026 Launch
The so-called “Trump Account,” a new provision within OBBBA, will allow parents or grandparents to establish investment accounts for newborns beginning in 2026. While specific contribution limits and qualified investment rules are still being finalized, the intention is to promote early financial literacy and savings. Families expecting children or grandchildren in 2025 or 2026 should monitor forthcoming Treasury guidance. Establishing these accounts early could provide tax-deferred or potentially tax-free growth for a child’s future education or investment goals.
3. 100% Bonus Depreciation & Expanded Section 179 for Business Owners
OBBBA permanently restores 100% bonus depreciation and enhances Section 179 expensing limits, allowing business owners to deduct the full cost of qualifying equipment or improvements in the year the asset is placed in service. This includes machinery, technology, vehicles, and certain building upgrades. For business owners or professionals with significant income variability, this can create powerful tax flexibility—offsetting higher income years through strategic capital investment. As always, coordination with your accountant is key to ensuring documentation, asset eligibility, and depreciation recapture are handled correctly.
4. 0% Long-Term Capital Gains Bracket – A Strategy for Affluent Retirees
OBBBA maintains the 0% long-term capital gains bracket, and the IRS has released updated thresholds for 2026 across the 0%, 15%, and 20% tiers. For affluent retirees with taxable investment accounts, this presents a unique opportunity: by coordinating withdrawals, long-term gains, and capital loss carryforwards, it’s possible to fund a portion of annual spending at a 0% tax rate. For example, retirees who can live off taxable assets—rather than IRA withdrawals—may remain within the 0% bracket if total income is managed carefully. With proper planning and collaboration between your advisor and CPA, this strategy can potentially reduce or eliminate federal capital gains taxes entirely.
5. Above-the-Line Charitable Deduction for Non-Itemizers (2026)
Beginning in 2026, individuals who do not itemize will be eligible for an above-the-line charitable deduction—up to $1,000 for single filers and $2,000 for married couples filing jointly. This is a meaningful change for taxpayers who take the standard deduction and previously received no tax benefit for charitable gifts. For many affluent individuals affected by the $10,000 state and local tax (SALT) cap, this adjustment restores at least partial deductibility for ongoing giving. A simple recurring annual donation or donor-advised fund contribution can now generate a tangible tax benefit. It’s a small but elegant lever for tax efficiency within a philanthropic strategy.
Conclusion
These five updates from the One Big Beautiful Bill Act represent the most actionable tax changes for 2026. Each offers a distinct opportunity to improve after-tax wealth, enhance retirement flexibility, or align charitable intentions with new legislation. Because these benefits intersect with income thresholds, filing status, and state tax exposure, personalized analysis is essential. If you’d like to review how these provisions apply specifically to your plan, reach out so we can collaborate with your CPA and ensure your strategy is aligned before year-end.
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Sources:
Kiplinger: Tax Saving Opportunities in the One Big Beautiful Bill Act (2025)
NumberNerds: Key Tax Changes for Individuals and Businesses Under the OBBBA (2025)
Clifford Swan Investment Counsel: Understanding the One Big Beautiful Bill Act (2025)
IRS / Treasury Guidance Updates (Federal Register, 2025)
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Disclaimer:
This material is provided for informational and educational purposes only and should not be construed as individualized investment, tax, or legal advice. The information contained herein is based on current legislation and third-party sources believed to be reliable as of publication but may change without notice. Past performance is not indicative of future results. Wealthstone Private Wealth Management is a Registered Investment Advisor in the State of Arizona. Advisory services are offered only to clients and prospective clients where Wealthstone and its representatives are properly licensed or exempt from licensure. Always consult your CPA or tax advisor before making tax-related decisions.
