Discovery Lab
2026 OBBBA Relief Standards
The One Big Beautiful Bill Act (P.L. 119-21) introduces significant tax relief for 2026. Here's every deduction and exemption that could reduce what you owe.
2026 Standard Deductions
OBBBA increased standard deductions across all filing statuses:
Single Filer
$16,000
2026 Standard
Married Filing Jointly
$32,000
2026 Standard
Head of Household
$24,000
2026 Standard
Overtime Deduction
Up to $25,000
New in OBBBA
Are you getting every 2026 deduction?
Our analysis applies all OBBBA deductions to recalculate what you actually owe.
New OBBBA Deductions
OBBBA introduces above-the-line deductions that reduce your adjusted gross income:
Workers can deduct up to $12,500 (single) or $25,000 (joint) in qualified overtime pay from their adjusted gross income.
Phase-out Thresholds:
- Single: $150,000 MAGI
- Joint: $300,000 MAGI
OIC Impact: This deduction reduces your Monthly Disposable Income (MDI), potentially lowering your Offer in Compromise calculation.
The 1099-NEC filing threshold increased from $600 to $2,000. This reduces administrative burden for both payers and recipients of small payments.
How This Affects Your Tax Liability
These 2026 changes can impact your resolution strategy in several ways:
- 1
Lower Assessments
If you're filing delinquent 2025/2026 returns, the higher deductions reduce your tax liability.
- 2
Better OIC Calculations
The IRS uses current income in Offer in Compromise calculations. Lower taxable income = lower monthly disposable income = lower offer amount.
- 3
CNC Consideration
Lower taxable income may support Currently Not Collectible status consideration if expenses exceed income. Subject to IRS discretion.
Continue Your Discovery
Get Your 2026 OBBBA Analysis
Our Enrolled Agents apply every OBBBA deduction and exemption to find your lowest possible liability. 30-page roadmap for $495.