What Happened in July 2025
Congress extended the 2017 Tax Cuts and Jobs Act (TCJA) provisions that were set to expire after 2025. The OBBB locked them in permanently, with the most benefit flowing to middle-class earners.
Core provisions: Lower tax brackets (10%, 12%, 22%, 24%, 32%, 35%, 37%), higher standard deduction, expanded child tax credit.
Tax Brackets Locked for 2026
These are the rates you'll pay in 2026 for taxable income at each bracket:
| Single Filer | Rate |
|---|---|
| $0–$11,600 | 10% |
| $11,600–$47,150 | 12% |
| $47,150–$100,525 | 22% |
| $100,525–$191,950 | 24% |
Real Savings Examples
Single earner, $60,000 income (22% bracket):
- Standard deduction 2026: $16,100
- Taxable income: $43,900
- Tax owed: ~$5,200
- Effective rate: 8.7%
Married couple, $100,000 combined (22% bracket):
- Standard deduction 2026: $32,200
- Taxable income: $67,800
- Tax owed: ~$7,600
- Effective rate: 7.6%
- Savings vs. if brackets expired: ~$1,500/year
Child Tax Credit Expansion
The OBBB expanded the child tax credit. For 2026:
- $2,000 per qualifying child under 17
- $1,600 earned income credit for children 6–17 (new for 2026)
- $600 for children under 6 (increased from $500)
Phaseout: Begins at $400,000 married filing jointly ($200,000 single).
For ITIN holders with qualifying children (U.S. citizen children with valid SSNs), this credit is substantial. A family of 3 children could claim up to $5,000+ in credits.
What This Means for ITIN Holders
The good news: Tax liability is lower for 2026. If you're in the 22% or 24% bracket, the OBBB saved you roughly 2–4 percentage points vs. what would have happened if rates reverted.
The caveat: These provisions are permanent now, but future Congresses could change them. Don't assume lower brackets forever.
Action: File your 2026 taxes claiming the standard deduction for your status. If you have U.S. citizen children with SSNs, claim the child tax credit. That's where the real savings are for families.
Frequently Asked Questions
What is the One Big Beautiful Bill?
A federal tax law signed on July 4, 2025 (Public Law 119-21). It made the 2017 tax brackets permanent and adjusted several deductions and credits starting in 2026, so rates did not rise as they had been scheduled to.
Do ITIN holders benefit from the new tax law?
For the parts tied to filing a return, yes — the permanent lower brackets and the higher standard deduction apply to ITIN filers who are resident aliens, the same as other taxpayers.
Did the law change the Child Tax Credit for ITIN families?
The Child Tax Credit rose to $2,200 per child, but the child must have an SSN — you cannot claim the CTC for a child who only has an ITIN. A dependent with an ITIN may instead qualify for the $500 Credit for Other Dependents.
Did the law add a tax on money sent abroad?
Yes — it created a new federal tax on certain remittance transfers. If you send money to family abroad, confirm the current rate and which transfers are exempt with your provider before sending.