The One Big Beautiful Bill Act: 2026 Tax Changes EAs Need to Know
The IRS-backed 2026 changes that matter for EAs: nonitemizer charitable deductions, itemized-deduction limits, standard deductions, and the boundary between tax law and the SEE cycle.
Last reviewed: August 3, 2026. This article summarizes current IRS guidance for tax year 2026; it does not predict what a particular SEE appointment will test.
The One Big Beautiful Bill Act changed several individual-tax rules for 2025 and 2026. The useful way to study it is not to memorize a headline about a “tax cut.” Separate the effective year, the taxpayer's filing method, and the rule that actually changes the return.
Charitable contributions changed in two directions
Beginning with tax year 2026, a taxpayer who does not itemize may deduct up to $1,000 of cash contributions to certain qualified organizations, or $2,000 for a joint return. The deduction is limited to the specified cash gifts; it is not a general deduction for every kind of donated property.
Taxpayers who itemize still need to apply the normal substantiation, qualified-organization, and contribution-limit rules. Use IRS Topic 506 and Publication 526 for the operational details.
Itemized deductions and the top bracket
The former overall limitation on itemized deductions was eliminated for 2018–2025 and made permanent by the OBBB. The law nevertheless limits the tax benefit of itemized deductions for taxpayers in the 37% bracket. That is different from capping every individual deduction at the same dollar amount.
Do not turn this into a rule that “everyone's itemized deductions are capped.” Determine whether the taxpayer itemizes, which deductions are allowed, and whether the taxpayer is in the top bracket before analyzing the benefit limitation.
2026 baseline numbers
For tax year 2026, the IRS lists these standard deductions:
| Filing status | Standard deduction |
|---|---|
| Single or married filing separately | $16,100 |
| Married filing jointly / surviving spouse | $32,200 |
| Head of household | $24,150 |
The seven individual rates remain 10%, 12%, 22%, 24%, 32%, 35%, and 37%. The 2026 top-rate threshold is over $640,600 for unmarried individuals and over $768,700 for joint returns.
The IRS also lists a $2,200 maximum Child Tax Credit, a maximum $8,231 EITC for taxpayers with three or more qualifying children, and a $17,670 maximum adoption credit for qualified expenses in 2026.
Other changes worth knowing
- The annual gift exclusion remains $19,000 per donee for 2026.
- The basic estate exclusion amount is $15,000,000 for a decedent dying in 2026.
- The foreign earned income exclusion is $132,900 for 2026.
- The Section 179 maximum is $2,500,000, with the phaseout beginning after $4,000,000 of qualifying property placed in service.
- The Lifetime Learning Credit phaseout remains $80,000–$90,000 for other filers and $160,000–$180,000 for joint filers.
These are tax-year figures. A return's facts, filing status, deduction method, and effective date still control.
What this means for EA candidates
Do not assume that every 2026 tax-year change is automatically part of the applicable SEE question set. The exam's current content outline and law date control. Use the IRS enrolled-agent FAQ and the PSI Candidate Information Bulletin before building a study list.
For practice, EA Dojo has source-gated questions across the three SEE parts. It is designed to help apply verified rules; it is not a replacement for the official outline.
Sources: IRS 2026 inflation adjustments · IRS Topic 506: Charitable contributions · Revenue Procedure 2025-32
Related: 2026 IRS inflation adjustments · EA exam quick reference · EA exam scoring