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Winners and Losers Under the One Big Beautiful Bill Act

  • Writer: Viktoriya Barsukova, EA, MBA
    Viktoriya Barsukova, EA, MBA
  • 5 days ago
  • 2 min read

OBBBA
OBBBA

Every major tax bill creates both opportunities and challenges for taxpayers. The One Big Beautiful Bill Act (OBBBA)is no exception. Here’s what you need to know about who comes out ahead—and who doesn’t—under the new law.




Winners One Big Beautiful Bill Act


Non-Itemizers

You no longer have to itemize to benefit from several valuable deductions. OBBBA makes the following available to everyone:



Educators

Teachers, coaches, and even sports administrators see expanded relief:


  • Starting in 2026, unreimbursed educator expenses are once again deductible as non-2% miscellaneous itemized deductions.

  • The $300 above-the-line deduction is retained, but broadened to cover more than just classroom supplies.


Small Business Owners

Good news for entrepreneurs—the Qualified Business Income (QBI) deduction is now permanent. Key changes include:


  • Higher phase-out thresholds, allowing more business owners to qualify.

  • A guaranteed minimum deduction for owners who materially participate in their business.


Families with Children


  • Trump accounts: tax-deferred investment accounts for children, no earned income required, with a $1,000 government pilot seed contribution and potential employer contributions.

  • Child tax credit permanently increased from $2,000 to $2,200, with future inflation adjustments.

  • Adoption credits up to $5,000 are now refundable (starting in 2025).

  • The maximum child and dependent care credit rate rises from 35% to 50% for lower-income families.


Businesses With Heavy Investment



High Earners

The top marginal tax rate stays at 37% instead of rising back to 39.6% in 2026.


Losers One Big Beautiful Bill Act


Clean Energy Businesses

Manufacturers of electric vehicles, solar panels, and other clean-energy products lose big. Many tax credits and incentives that supported this sector will end earlier than scheduled.


High Earners (Beyond Tax Brackets)

While the 37% top bracket remains, the bill phases out relief from the SALT cap and introduces a new overall limitation on itemized deductions. This erodes benefits for those in higher income ranges.


Bottom Line: OBBBA expands deductions and credits for non-itemizers, families, educators, and small business owners. On the flip side, it scales back clean-energy incentives and limits high-income deductions.



 
 
 

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