In this solo episode of the One of a Kind Financial Show Daily, host Mike Milligan explains why tax planning should extend beyond the traditional "April 15th" mindset and focus on the broader 2026 tax environment. He introduces the newly enacted One Big Beautiful Bill (OBBB), which extends many provisions of the 2017 Tax Cuts and Jobs Act while adding new twists. Milligan outlines three big‑picture changes for 2026: a higher inflation‑adjusted standard deduction, tax brackets that have risen about 2.7% due to inflation indexing, and a softened but still present sunset cliff for the old law. He then highlights three often‑overlooked deductions introduced in 2026— a tip deduction (up to $25,000 for eligible tipped workers), an overtime deduction (up to $12,500 for individuals, $25,000 for married couples), and a senior deduction ($6,000 per person over 65)— all reported on a new Schedule 1‑A. Milligan discusses how the expanded 22% bracket creates opportunities for strategic income timing, such as controlled Roth conversions, capital‑gain realization, and shifting income into lower‑tax years for retirees. He offers three practical tax‑planning actions: (1) reassess the standard vs. itemized deduction choice given the higher standard deduction; (2) plan around the interaction of the TCJA and OBBB, especially regarding gifting, trusts, and business structures; and (3) coordinate retirement withdrawals to intentionally fill low‑tax brackets without unintentionally jumping into higher ones. Throughout, he emphasizes aligning tax strategy with a client’s unique life plan rather than merely reacting to the tax code. The episode ends with standard disclosures, contact information for One Oak Financial, and a series of promotional jingles.
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Welcome to the One of a Kind Financial Show Daily. This is your host, Mike Milligan. Again, I want to give you another segment from the One of a Kind Financial Show this past weekend and where we talked about spring cleaning and 5 things you could do to spring clean your financials as you move into this new season of 2026.
Boy, 2026 is flying by.
And we had the opportunity to New Year's resolutions to get our finances in order. Now we have this opportunity to do some spring cleaning and listen to these 5 tips and tricks that I give on those. As always, you are one of a kind.
Welcome back to the One of a Kind Financial Show. This is Mike Milligan. Gary Nolan, your consumer advocate, has this week off. Uh, we're going to talk taxes because when people hear tax planning, they usually think April 15th. which is just around the corner, and a shoebox of receipts. In 2026, real tax planning isn't about using new deductions, new brackets, and a once again changing landscape to make sure more of your money stays aligned with your one-of-a-kind financial plan, not the government's plan for your money. So let's talk about what's changed in 2026. For the rest of the year. So we came into this year with a new law that everybody nicknamed the One Big Beautiful Bill, or OBBB. It extended a lot of the 2017 tax cut features people were worried would disappear, but it also added some brand new twists. Here are the 3 big picture changes that you need to know that I would like to share with you today. I'm gonna give everybody the phone number right now. So if you're sitting at home, I'd love for you to get out a piece of paper maybe, and write down these changes and how they impact you. I want to give you valuable information. And guys, if you want these change— these 3 big picture things I'm gonna give over the next time period and you're out and about listening right now, just text the word ideas to 600-700 and I'll make sure to get these back to you today. If you want to call in and talk to me about your taxes and tax planning, you can call me at One Oak Financial. The number is 757-403-5078. Let me get into these 3 big picture changes that you need to know. First, the standard deduction stayed high and got bigger with inflation. So for 2026, it's about $16,100 if you're single, $32,200 if you're married filing jointly, with heads of household going up to about $24,150. Now, those deductions right there are for people that are under 65. Okay? I'm going to come back to that in just a minute. The tax brackets all moved up a little bit also. It roughly went up about 2.7% because the IRS adjusted the brackets for inflation, which means a little more of your income is taxed at lower rates compared to 2025. And some of the big tax cliff fears around the 2026 sunset of the old Tax Cuts and Jobs Act law were softened, but not everything was permanently fixed. So there's still some planning to do around future rate risk. So in 2026, deductions— there's some deductions that most people miss because 2026 brings in some brand new, very specific deductions that a lot of Americans are overlooking. So if you work and you receive tips, A tip deduction for workers in tipped occupations means that you can deduct up to $25,000 in qualified tips if you're under certain income thresholds. The interesting part about this is there's a new form within the 1040 world. It's called Schedule 1-A that has all of these deductions in them. It's in addition to your typical 1040. There's also, on top of the tip deduction, there's now an overtime deduction where eligible workers can deduct up to $12,500 in qualifying overtime pay and up to $25,000 for married couples filing jointly, again with income phase-outs. And then, as I mentioned earlier, if you're over 65, there's the new senior deduction layered on top of the standard deduction and on top of the age 65 deduction, which is especially important for retirees on fixed incomes. Those additional senior deductions are an additional $6,000 per person at certain income limits. So if you're listening, right, and you've taken notes here, I just want to repeat those again. So the 3 big picture changes are the standard deduction has increased, the tax bracket has moved up by about 2.7%, and the big cliff tax fears around the sun setting of the old law has been softened, but not permanently fixed. And then the deductions that most people are missing in 2026 include the tip deduction, the overtime deduction, and the senior deduction. So again, let me give you the phone number right now. If you want to talk more about tax planning, you can call in today to 757-403-5078. If you call in too, just let me know how much you miss Gary today. Because Gary and I have some lively conversation. He's one of my— I've had many conversations with people on podcasts before, and then he and I weekly have these conversations about what we're doing on the One of a Kind Financial Show. I miss him this week, guys. It's hard to speak the whole time in a segment without your co-host there to give you a break or a water break. But let me continue on with this tax planning. that we are chatting about here. Because the 2026 brackets crept higher with inflation, there's a window this year to do some smart income timing. The 22% bracket for single filers now runs roughly from about $50,400 to $105,700. And for married couples, it goes all the way up to $211,400. That expanded room can be a sweet spot for things like controlled Roth conversions, realizing capital gains strategically, or shifting income from a higher tax future into today's more favorable brackets. For retirees, 2026 is a great year to sit down and ask, which years of my retirement will be my low tax years, and how can I fill those brackets on purpose? Instead of by accident? Let me ask you those again. I don't want to walk past this. I don't want, as we're moving around our communities today and you're listening to me, I don't want to bypass these like you have maybe bypassed a house or maybe missed an exit because you were so entrenched in the radio show. I want you to hear these questions again. Which years of my retirement will be my low tax years? And how can I fill those brackets on purpose instead of by accident? Here's some practical tips as we wrap up this segment of today's One of a Kind Financial Show. And these are my tax moves. So if you still got that pen and paper right there, let me tell them to you. Number 1, reevaluate standard versus itemized deductions. With the higher 2026 standard deduction. Most people will default to WIP, but bunching charitable gifts or medical expenses into one year may still make itemizing worthwhile for some. Number 2, plan around the Tax Cuts and Jobs Act and the One Big Beautiful Bill blend. Even though the One Big Beautiful Bill extended many lower brackets or other provisions from estate and gift tax exemptions to some itemized deduction rules, they're still scheduled to shift in the next few years. So in 2026, it's a prime time to review gifting strategies, trust, and business structures. And then tip 3, coordinate retirement withdrawals. Use today's tax brackets intentionally. Balance Social Security, pension income, IRA withdrawals, Roth conversions, and even annuity income so you don't accidentally jump into a higher bracket or leave low brackets unused in the early retirement years. Now, how does this tie to the one-of-a-kind financial plan? See, tax laws come and go, folks, but your one-of-a-kind life is constant. The goal isn't to memorize every line of the tax code. It's to make sure that your tax strategy matches is your life strategy. That means matching your income timing to the new 2026 brackets, making sure you're not leaving new deductions like overtime, tips, and the senior deductions sitting on the table. And it's coordinating your investments, retirement accounts, and business income so the tax tail doesn't wag the life dog. Guys, this is the One of a Kind Financial Show, and I'm Mike Milligan, your host. We miss Gary Nolan this week, but if you want to call in and just tell me Uh, some, some wishes to give to Gary, please do. You can call in at 757-403-5078 or text the word ideas to 600-700.
This has been the One of a Kind Financial Show Daily with your host Mike Milligan. I hope you enjoyed that segment from last week's solo episode of the One of a Kind Financial Show. Just as a reminder to reach out to us, you can do that at, uh, also at www.oneoakfinancial.com. That's the number one oakfinancial.com. I am an investment advisory representative with Advisory Alpha LLC, registered with the Securities and Exchange Commission. Ideas by Mike doing business as One Oak Financial is an unaffiliated entity of Advisory Alpha LLC. This podcast is done for educational purposes only. Please consult with a licensed financial professional, a tax advisor, or an attorney before making any decisions around investing, taxes, Or estate planning. For more information about our firm, please go to our website or reach out to schedule a one-on-one consultation with me personally. We'll see you tomorrow.
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