Household Structures Of The 2026 One Big Beautiful Bill” (OBBB)

The 2026 tax year, under the “One Big Beautiful Bill” (OBBB), creates distinct financial paths for different household structures.¹ While many core benefits were made permanent, the thresholds for when these benefits kick in—or disappear—differ significantly.

Here is a detailed breakdown of the 2026 impacts.

1. Standard Deduction: The “Safety Net”

The standard deduction is the amount of income you don’t have to pay taxes on. In 2026, these amounts will see a significant inflation-adjusted jump.

• Single-Parent Household (Head of Household): $24,150.² This status offers a higher deduction than a standard single person to account for the costs of raising a child alone.
• Married Couple (Filing Jointly): $32,200.³
• The Impact: Single parents get about 75% of the deduction that a married couple receives, providing a relative advantage per person compared to the 50/50 split of the past.

2. The Child Tax Credit (CTC): $2,200 Per Child⁴

The OBBB made the increased $2,200 credit permanent and added an annual inflation adjustment starting in 2026.⁵

Note on “Mixed Status” Families: One major 2026 shift is that married couples only need one parent to have a valid Social Security Number to claim the credit.⁶ Single parents must have an SSN themselves; they cannot claim it with an ITIN.

3. Childcare & Dependent Care Credit

This credit helps families pay for daycare so they can work or look for work.⁷

• Married Couples: Both parents generally must be working (or one working and one a student/disabled) to claim this.
• Single Parents: Only the custodial parent can claim this credit. Even if a non-custodial parent pays the daycare bill, the 2026 rules dictate that only the parent the child lived with for the majority of the year is eligible.
• Threshold Shift: In 2026, the credit begins to phase down once income hits $75,000 for single parents, but $150,000 for married couples.⁸

4. The “No Tax on Overtime” Rule

Starting in 2026, a new federal deduction allows workers to keep more of their overtime pay.⁹

• Single Parents: Can deduct up to $12,500 of overtime pay from their taxable income.¹⁰ The benefit begins to disappear once total income exceeds $150,000.¹¹
• Married Couples: Can deduct up to $25,000 (combined) of overtime pay.¹² The phase-out for this benefit starts at $300,000 of joint income.

5. Child Support & The “Self-Support Reserve”

While federal taxes change, many states are updating child support formulas in 2026 to align with federal poverty guidelines.

• The 180% Rule: New guidelines in several states ensure that a parent’s child support obligation cannot push their own remaining income below 180% of the Federal Poverty Level.¹³
• The Impact: This protects low-income single parents (the “payors”) from falling into extreme poverty due to support orders, but it may result in lower payments for the receiving parent if the payor is low-income.

Summary Table: Who Benefits More?