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The One Big Beautiful Bill set the rules. 2026 brings the deadlines. Here’s what businesses and individuals should review before December 31.
The One Big Beautiful Bill set the rules. 2026 brings the deadlines. Here’s what businesses and individuals should review before December 31.
The One Big Beautiful Bill Act (OBBB) is now the foundation of tax planning. In 2026, several of its biggest provisions take full effect, transition relief expires, and a deferral deadline dating back to the Tax Cuts and Jobs Act (TCJA) arrives. The greatest risk isn’t paying more tax. It’s missing the credit, refund, or deadline that could have changed the outcome.
| Date | What’s happening | Who it affects |
|---|---|---|
| December 31, 2026 | Gain deferred under the original Opportunity Zone program (OZ 1.0) must be recognized | Investors in Qualified Opportunity Funds (QOFs) |
| December 31, 2026 | 2026 Trump Account contributions generally must be made by year-end | Parents, grandparents, other contributors, and employers |
| December 31, 2026 | Last day to time 2026 charitable gifts under the new deduction floors | Individuals and corporations that donate to charities |
| After December 31, 2026 | New OZ 2.0 rules apply to QOF investments | Investors with 2026 or 2027 capital gains |
| February 1, 2027 | Filing deadline for 2026 Forms W-2 is February 1, 2027, since January 31, 2027 falls on a Sunday. New reporting for qualified tips and overtime pay applies to all 2026 Forms W-2, not just those filed on the deadline. Trump Account employer contributions are reported in Box 12, Code TA. | Employers |
| Ongoing | IEEPA tariff refunds processed through U.S. Customs and Border Protection’s (CBP) CAPE system | Importers of record |
| July 6, 2026 – passed | Deadline to amend 2022–2024 returns for domestic research costs has passed. Businesses that missed it should review remaining options. | Small businesses with R&D activity |
Explore each chapter of the guide, from business and individual tax to tariffs, state and local tax, and the new Trump Accounts.
In year two of the OBBB, the focus has shifted from understanding the legislation to using it well. Permanent 100% bonus depreciation, first-year expensing for qualified production property, higher Section 179 limits, and an expanded Section 1202 exclusion gives business owners more flexibility to time deductions, make investments, and plan for growth.
Domestic research and experimental (R&E) costs are deductible again under the new Section 174A. For most businesses, the method selected for 2025 will carry into 2026. Transition relief remains available for costs incurred from 2022 through 2024, while foreign research costs must still be amortized over 15 years.
Lower tax rates and a higher standard deduction are now permanent. New deductions for qualified tips, overtime pay, and auto loan interest, along with a larger Child Tax Credit and updated charitable giving rules, could change whether it makes sense to itemize from one year to the next.
The federal lifetime exemption remains at $15 million per person in 2026 and will be indexed for inflation going forward. Trusts, gifting strategies, and family entities can help individuals and families make the most of the higher exemption. However, the non-tax side of planning, including healthcare directives and business succession, are just as important.
2026 marks the first filing season under the OBBB’s international tax rules. GILTI and FDII have new names and rates, the foreign tax credit and pro rata rules have changed, and new Section 987 regulations take effect. A Pillar Two side-by-side package may also provide relief for qualifying U.S. groups.
More than $100 billion in IEEPA tariff refunds are in motion following the Supreme Court’s ruling in Learning Resources, Inc. v. Trump. But Section 232 and Section 301 tariffs remain in effect, and litigation continues over other tariffs. Importers still need to prepare for both potential refunds and ongoing tariff exposure.
For 2026, employers face revised Form W-2 and 1099 reporting requirements for qualified tips and overtime, without the penalty relief available in 2025. The paid family and medical leave credit has been expanded and made permanent, while remote and multistate workforces continue to create additional state-level obligations.
Gain deferred under the original Opportunity Zone (OZ) program becomes taxable on December 31, 2026. Meanwhile, the OBBB made the program permanent, and OZ 2.0 introduces a rolling five-year deferral, a 10% basis step-up, added benefits for rural funds, and new reporting requirements.
The state and local tax (SALT) deduction cap rises to $40,400 for 2026, and 38 states now offer pass-through entity tax (PTET) programs. With varying state conformity and several states changing their tax rates, the most favorable federal approach may not produce the best results at the state level.
Trump Accounts provide a new tax-favored savings option for children under 18. Families can contribute up to $5,000 a year, eligible children may receive a $1,000 federal seed contribution, and employers can contribute up to $2,500 per employee tax-free to the employee.
Keep the numbers close at hand. Our guide’s reference tables cover 2026 federal income tax brackets for every filing status, alternative minimum tax (AMT) exemptions, and contribution limits for 401(k), IRA, SIMPLE, and SEP plans, including catch-up contributions and Roth IRA income phaseouts.
Thoughtful tax planning takes time. Aprio can help you understand what changed, find the opportunities most relevant to you, and act with confidence before year-end.
