Massive tax changes are coming in 2026 with 3 hidden traps. Move now before you get hurt

Core Insights - The One Big Beautiful Bill Act (OBBBA) significantly rewrites the federal tax code, introducing new credits and deductions while also presenting potential traps that could limit tax savings [1] Group 1: Seniors Deduction - The OBBBA introduces an additional seniors deduction allowing individual taxpayers over 65 to claim up to $6,000 and married couples filing jointly to claim up to $12,000 [2] - This deduction is only available until 2028, which may lead to missed opportunities for those delaying Social Security benefits until age 70 [3] - Income thresholds for the deduction phase out at $75,000 for singles and $150,000 for married couples, fully phasing out at $175,000 and $250,000 respectively [3] Group 2: SALT Deductions - Changes to the State and Local Tax (SALT) deduction will raise the cap from $10,000 to $40,000 starting in 2025, with annual increases of 1% until 2029, reverting to $10,000 in 2030 [4] - High-income families in states with elevated local taxes, such as New York and California, will benefit the most from this change [5]