Tax season always brings its share of headaches — especially when a major tax law overhaul like the One Big Beautiful Bill Act (OBBBA) changes the rules. Since being signed into law in July 2025, the OBBBA has introduced a wide range of tax code updates that affect individuals, families, and businesses alike.
Despite its impact, many tax preparers are still catching up, and a few important provisions are being missed on returns this year. Overlooking these changes could mean missed deductions, incorrect filings, or even unnecessary tax bills for you or your clients. Here are four OBBBA provisions that are surprisingly easy to overlook — and why they matter.
1. Expanded Deduction for Mortgage Insurance Premiums
One OBBBA provision that often flies under the radar involves mortgage insurance premiums. Beginning in 2026, the law restores the deduction for mortgage insurance premiums, treating them as deductible interest on acquisition indebtedness. This provision mirrors a tax break that existed before the Tax Cuts and Jobs Act but was suspended and only partially restored until now.
However, the benefit phases out for taxpayers with adjusted gross income above $100,000 ($50,000 for married filing separately), meaning not all homeowners will qualify. Many tax preparers miss this because the provision becomes effective for tax years after December 31, 2025 — a detail easy to overlook when preparing 2025 returns filed in 2026. Since it can lower taxable income for eligible homeowners, missing it could mean paying more tax than necessary.
2. Trump Accounts and New Savings Deductions
Another easily overlooked item is the introduction of “Trump accounts” — a new type of tax‑advantaged savings account established under the OBBBA. These accounts, available starting January 1, 2026, allow parents to contribute up to $5,000 annually for a child under age 18, with an initial $1,000 federal seed contribution for eligible children born between 2025 and 2028.
Trump accounts can be used for education, job training, and even first‑time home purchases, similar to a 529 plan but with different eligibility and distribution rules. Many preparers overlook these accounts simply because they’re new — and because guidance on them is still evolving. Missing this provision could mean failing to inform clients about an important savings tool that reduces taxable income and boosts long‑term planning opportunities.
3. Increased Reporting Thresholds for 1099 Forms
The OBBBA also raises reporting thresholds for certain information returns, which can be a game-changer for freelancers, side hustlers, and small businesses. Starting after December 31, 2025, the threshold for reporting payments on Forms 1099‑MISC and 1099‑NEC for services performed by independent contractors increases from $600 to $2,000. Similarly, the threshold for 1099‑K reporting for third‑party settlement organizations reverts to a higher standard, requiring reporting only when the recipient has earned more than $20,000 across at least 200 transactions.
The impact of this change is huge: fewer small service providers will receive 1099s for small or occasional gigs, meaning their income may still be taxable but appears on a return without an accompanying IRS match. Tax preparers who don’t account for this threshold change could inadvertently overlook reportable income or misinterpret a missing 1099 as a sign of zero income.
4. Health Savings Account (HSA) Enhancements Few Are Using
While many preparers watch retirement accounts closely, fewer are tracking new HSA enhancements under the OBBBA — and that’s a mistake. For plan years beginning after December 31, 2024, the law allows individuals enrolled in High Deductible Health Plans (HDHPs) to participate in direct primary care arrangements and use HSA funds for those services (up to set monthly limits). In addition, all bronze and catastrophic health insurance plans on the ACA exchange now qualify for HSA contributions — a change that significantly expands eligibility.
These improvements make HSAs more flexible and useful as tax‑advantaged accounts for more people, especially middle‑income earners who might otherwise have been shut out. Because these changes affect health planning and retirement planning alike, missing them could mean under‑utilizing valuable tax savings tools available to clients.
Why Tax Preparers Need to Stay Ahead of OBBBA Changes
The OBBBA spans hundreds of pages and touches a wide range of tax areas — from dependent care and child tax credits to clean energy tax credit sunsets and business incentives. But it’s the easily overlooked provisions like mortgage insurance deductions, Trump accounts, reporting threshold changes, and HSA flexibility that often cause the biggest surprises at tax time.
Miss these changes, and clients could either lose tax savings or deal with IRS questions later. That’s why tax preparers must dig deep into the details and keep up with OBBBA updates as IRS guidance evolves. With so many moving parts, the difference between an accurate return and an expensive mistake can be surprisingly small.
Stay Informed and Maximize Your Return
As tax laws continue to shift, especially with transformative legislation like the OBBBA, both taxpayers and preparers must stay vigilant. Small provisions buried in complex legislation often have big implications on refunds, deductions, and liabilities — especially for middle‑income families, homeowners, and small business owners.
If you work with a tax pro, ask them whether they’ve considered these OBBBA provisions on your return. And if you prepare your own taxes, double‑check these benefits before filing. Staying informed today could mean more money in your pocket tomorrow.
Have you or your tax preparer taken advantage of any OBBBA provisions this tax season? What changes caught you by surprise?
What to Read Next
The $6,000 OBBBA “Paperwork Trap”: 6 Tax Documents That Will Delay Your 2026 Refund
The “Itemizer Trap”: Why Seniors with Under $40,000 in State Taxes are Switching to the New ‘OBBBA Standard’
The “Residency Exit” Fee: The Quiet OBBBA Provision That Penalizes Seniors Moving Between States
The SNAP Purge: Why 800,000 Seniors are Losing Food Benefits Under the New OBBBA Work Rules
The $12,000 Loophole: How Married Couples Can Double the OBBBA Credit (If They Act by April)
