The One Big Beautiful Bill Act (OBBBA) introduces some of the most substantial federal tax and policy changes in recent years. Because these adjustments affect households differently depending on income, family structure, employment, and reliance on government programs, it is important to understand the general direction of the changes and discuss their implications with qualified tax and legal professionals. At Mirus Financial Partners, we help clients navigate these transitions within the context of their long-term financial goals.

Changes to the Standard Deduction and Income Tax Structure

Beginning in 2026, the standard deduction is scheduled to increase for all filing statuses. Many taxpayers may find that this change simplifies filing and may reduce taxable income, although the actual effect will vary by situation. In addition to the new deduction amounts, several tax provisions originally enacted in 2017 are set to become permanent. These include the continuation of lower marginal tax rates and the expanded standard deduction, creating a more stable framework for long-term planning.

New Tax Adjustments Affecting Certain Types of Income

The legislation introduces several new tax-related adjustments that may be relevant to specific taxpayers. Examples include deductions linked to mortgage interest for qualifying U.S.-assembled vehicle loans and preferential treatment for certain types of earnings. These changes are highly situational and will require careful review to determine their applicability to each tax filer’s circumstances.

Considerations for Business Owners and Entrepreneurs

Small business owners and investors may see meaningful changes to how they manage expenses and capital investments. Some pass-through entities may benefit from expanded or permanent rules related to depreciation, expensing, and other deductions. These provisions may influence business structure decisions and reinvestment strategies, though every business should evaluate these rules in the context of its cash flow, goals, and tax professional’s guidance.

Estate and Gift Tax Exemption Adjustments

One of the most notable financial planning changes within the bill is the scheduled increase in the lifetime estate and gift tax exemption beginning in 2026. For families engaged in multi-generational wealth planning, this development may create an opportunity to review existing estate documents and consider whether updates are appropriate. Any decisions related to estate or gift strategies should be made in consultation with tax and legal advisors to ensure they reflect current laws and family objectives.

Reductions in Federal Support Programs

The bill includes reductions in federal spending on programs such as Medicaid and SNAP. Individuals or families who rely on these programs may experience changes in eligibility or benefits once the new provisions take effect. It will be important for affected households to review their financial needs and consider alternative strategies where appropriate.

Changes to Federal Student Aid and Borrowing Rules

Families with children preparing for higher education should be aware that the bill introduces adjustments to federal student loan programs. Borrowing limits for certain federal loans, including Parent PLUS loans, are expected to tighten. These changes may alter how some families plan for education expenses and may increase the importance of earlier, structured planning.

Limitations for High-Income Taxpayers

Taxpayers in the highest marginal bracket may see a new limitation on itemized deductions, as the bill places a cap on the percentage of income that can be offset through itemizing. This adjustment may influence tax planning strategies for individuals with substantial charitable giving, mortgage interest, or state and local tax payments, and should be evaluated alongside guidance from a qualified tax preparer.

What These Changes May Mean for Your Planning

The effects of the One Big Beautiful Bill Act will differ significantly from one household to another. Working professionals may see changes to their taxable income beginning in 2026. Business owners may wish to revisit expense strategies or organizational structures. Families preparing for higher education may need to reassess loan availability. Individuals engaged in estate planning may benefit from reviewing existing plans in light of the increased exemption. Those relying on federal support programs may need to plan proactively for possible changes in benefits.

Partnering With You Through a Changing Policy Landscape

As always, the most effective approach is to evaluate these developments within the context of your personal goals and financial strategy. While Mirus Financial Partners does not provide tax or legal advice, we work closely with your advisors to help ensure your financial plan reflects the most current information and aligns with your long-term objectives.

If you would like to discuss how this Act may impact considerations related to your financial planning, let's schedule a review. Contact us today to schedule an appointment.