It’s Q1 2026, and the dust is finally settling on the “One Big Beautiful Bill” (OBBBA). If you’re feeling a mix of relief and anxiety, you aren’t alone. The legislative landscape has shifted, and while there’s money on the table, the Bear—inflation, legislative confusion, and predatory claim sharks—is prowling for those who aren’t prepared.
At Woobie, we don’t just watch your six; we guide you through the noise. This year brings a confirmed 2.8% COLA increase and massive changes to standard deductions. But it also introduces stricter requirements for safety nets like SNAP. Here is your protective briefing on keeping more of what you’ve earned this tax season.
The Good News: A Bigger Shield for Your Income
The OBBBA has officially supercharged the standard deduction. For the 2026 tax season, the Standard Deduction for Married Filing Jointly has risen to $32,200 (up significantly to combat inflation). For single filers, it’s now $16,100.
Why this matters: Fewer veterans will need to itemize. Unless your deductible expenses (like mortgage interest and charity) exceed these high thresholds, you can file faster and keep more cash. Plus, the bill introduced new specific deductions that might apply to your post-service hustle:
- Auto Loan Interest: Now deductible up to $10,000.
- SALT Cap Increase: The State and Local Tax deduction cap has jumped to $40,000 (a huge win for vets in high-tax states).
The Bear Trap: SNAP Work Requirements
Here is the hard truth we need to discuss. The OBBBA didn’t just give; it took away some safety nets. The age bracket for SNAP work requirements has expanded to 18–64 (previously capped at 54).
The Critical Risk: Previous exemptions for veterans have been removed in many contexts. If you rely on SNAP, you may now face strict work reporting requirements unless you have a documented disability rating. This is where accurate documentation becomes your lifeline.
Housing: The New Battlefield
Looking to buy this spring? The 2026 VA loan limit for standard areas is now $832,750. In high-cost counties, this ceiling pushes even higher, giving you more buying power without a down payment.
However, high limits don’t mean you should overextend. With interest rates fluctuating, using an ethical financial tool is non-negotiable. This is where our partner, Percapita, steps in. They offer tools to help you budget that extra COLA and tax refund effectively, ensuring you build wealth rather than debt.
Disclaimer: Percapita is not a bank. Banking services provided by Sutton Bank, Member FDIC.
Warning: The Rise of ‘Claim Sharks’
With the 2.8% COLA and new tax benefits, predatory “consultants” are circling. They promise “guaranteed” rating increases for a massive cut of your back pay. Do not take the bait.
The Woobie Difference:
- 90% First-Time Approval Rate: We get it right the first time.
- 40% Faster Processing: We navigate the red tape so you don’t have to.
- Ethical Advocacy: We never take a percentage of your future benefits illegally.
Your 2026 Action Plan
Don’t let the “Bear” of confusion eat your 2.8% raise. File your taxes early to lock in that $32,200 deduction, check your SNAP eligibility status immediately, and if you need to upgrade your disability rating to protect your benefits, reach out to us.
Frequently Asked Questions
How does the $32,200 standard deduction affect my VA disability pay?
It doesn’t directly touch your VA disability, which remains tax-free. However, it significantly lowers the tax burden on your other income (spouse’s income, civilian jobs), keeping more total household money in your pocket.
I heard veterans are exempt from the new SNAP work rules. Is that true?
No. Under the new 2026 provisions, the blanket exemption for veterans has been removed. You may now be subject to work requirements unless you have a specific disability rating or other qualifying exemption. Check your status immediately.
Can I deduct my car loan interest now?
Yes! One of the unique features of the “One Big Beautiful Bill” is the ability to deduct up to $10,000 in auto loan interest, which can be a major relief for families with vehicle payments.
Is Percapita a bank?
No, Percapita is not a bank. Banking services are provided by Sutton Bank, Member FDIC. They are our trusted partner for ethical financial management tools.