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We’re nearing the end of the 2026 tax season and it’s never too early to begin preparing for 2027!
Next year looks very different than what many expected just a year or two ago. Instead of a full reversion to pre-2017 rules, the One Big Beautiful Bill Act (OBBBA) has largely extended and reshaped the current system. Many of the lower tax rates, higher standard deductions, and key provisions from the Tax Cuts and Jobs Act (TCJA) have been made more or less permanent. This has provided more consistency going forward for both taxpayers and businesses.
At the individual level, many notable changes carry into 2027. The standard deduction remains increased, simplifying how taxable income is calculated and lessening the need to keep track of itemized expenses. The state and local tax (SALT) deduction cap has been extended and is set to increase 1% annually through 2029. There are also newer, more targeted provisions like no tax on tips, no tax on overtime, and expanded child tax credits. For families, programs like ‘Trump Accounts’ introduce a new way to build tax advantaged savings for children.
From a planning perspective, 2027 is less about preparing and more about optimizing. Business owners continue to benefit from provisions like the 20% QBI deduction and 100% bonus depreciation. At the same time, some benefits are temporary or limited by your income, meaning timing still matters. The opportunity now is in understanding which tax provisions are going to stick around, which are phased out, and how to structure your income and deductions. The rules may be more stable, but strategy still drives your tax outcome.
Are you planning ahead?
Interesting articles related to this topic:
- One, Big, Beautiful Bill provisions | Internal Revenue Service
- Inheritance tax and pensions: what the… | Schroders Personal Wealth
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