OBBBA on the EA Exam: 2026 Tax Law Changes to Know

The One Big Beautiful Bill Act (OBBBA), the 2025 tax legislation, becomes testable on the Special Enrollment Examination (SEE) with the cycle that begins May 1, 2026. This post explains what OBBBA changed, which exam parts it affects, and how to prepare for questions built on tax law in effect through December 31, 2025. If you sit for any part during the 2026 to 2027 window, the provisions below are the ones examiners can now ask about.

What is OBBBA, and why does it matter for the EA exam?

OBBBA is the shorthand name for the 2025 tax legislation known as the One Big Beautiful Bill Act. It matters for the exam because it changed several individual deductions and credits that the SEE tests directly. The exam measures your knowledge of federal tax law as enacted, so these changes affect part of the tested material.

Most of the changes touch ordinary individual returns: the deductions and credits that appear on Form 1040 and its schedules. Those items are heavily weighted in the individual portion of the exam, so candidates who studied from pre-2025 materials may see figures and rules that no longer match current law.

• Scope: mostly individual deductions and credits, with a smaller set of business provisions.
• Enactment: signed into law in 2025 under the name One Big Beautiful Bill Act.
• Exam relevance: provisions in effect through December 31, 2025 are testable for the cycle beginning May 1, 2026.

Which tax year the exam tests decides whether these provisions are in play. You can browse the full range of tested subjects in the topic library.

What tax year is tested on the 2026 EA exam?

The SEE tests federal tax law in effect through December 31 of the prior year. The cycle that begins May 1, 2026 covers tax law through December 31, 2025. That rule alone decides whether a newly enacted provision is testable in a given cycle.

The prior-year convention gives the IRS and the exam vendor time to update question banks after new law passes. It also means 2025 provisions flow into the May 2026 cycle instead of appearing the moment they are enacted.

Because the 2025 provisions land in the new cycle, line up your study calendar with the May 1 boundary. You can confirm current dates in the exam format overview.

When do OBBBA provisions become testable?

OBBBA provisions become testable with the cycle that begins May 1, 2026, the same date the exam moves to law through December 31, 2025. If you sit before that date, expect prior-year law. If you test on or after it, study the enacted 2025 rules.

When your appointment falls near the transition, prepare for the law that applies to your specific test date. The rules existed in 2025 law; they just were not in the tested window until the new cycle opened.

1. Confirm your test date: check whether your appointment falls before or on or after May 1, 2026.
2. Match the tax year: study 2024 law for earlier dates and 2025 law for the new cycle.
3. Update your materials: replace outdated figures with current-year limits from IRS guidance.

Once the provisions apply to you, review each major change. The SALT deduction cap comes first, and you can study it in Part 1 preparation.

How did OBBBA change the SALT deduction cap?

Under the enacted 2025 law, the state and local tax (SALT) deduction cap was raised to $40,000. This limit governs how much state and local income, sales, and property tax an itemizing taxpayer can deduct on Schedule A.

The SALT cap is tested often because it interacts with the choice between the standard deduction and itemizing. Inflation-related figures can change from year to year, so treat the cap as the current-year limit and confirm the exact number against IRS publications before your exam.

• What it limits: the combined deduction for state and local income or sales taxes plus property taxes.
• Where it appears: Schedule A, in the itemized-deduction calculation.
• Verification: confirm the current-year figure against IRS guidance, since annual figures change.

The SALT cap often appears with the mortgage interest deduction. You can drill both in the SALT and mortgage interest topic.

What changed with the Child Tax Credit under OBBBA?

Under the enacted 2025 law, the Child Tax Credit increased to $2,200 per qualifying child. The credit reduces tax liability dollar for dollar for taxpayers who meet the qualifying-child and income tests.

Credits carry heavy weight on the individual portion because they reduce tax liability directly. Expect questions on the qualifying-child definition, phaseout thresholds, and how the credit interacts with other family-related credits. As with all dollar amounts, treat the per-child figure as the current-year limit and verify it against IRS publications.

To practice credit computations and phaseout scenarios, work through the Child Tax Credit and credits topic before your exam date.

How do the new tip and overtime deductions affect Part 1?

Under the enacted 2025 law, new deductions were introduced for qualified tip income and overtime pay. Both sit in the individual portion of the exam, and they add to the income-related adjustments candidates must recognize.

Because these deductions are recent, many older study products do not cover them. Examiners may test the definition of qualified tip income, the treatment of overtime compensation, and any limits that apply. Check whether your current review materials include these items; if they don't, you're working from an outdated version of Part 1.

• Qualified tip income: a deduction for eligible reported tips, subject to statutory conditions.
• Overtime pay: a deduction for qualifying overtime compensation, with limits you should confirm.
• Common trap: treating these amounts as excluded from income when they are deductions, so read each question carefully.

These deductions concentrate in the individual material, so build them into your Part 1 study plan.

Which exam parts are most affected by OBBBA?

Part 1 (Individuals) is the most affected, because OBBBA changed deductions and credits that dominate that portion of the exam. Part 2 (Businesses) sees a smaller effect from a set of business provisions. Part 3 (Representation) is largely unaffected.

Let this distribution shape how you allocate study time. If you're preparing all three parts, weight your review of new law toward the individual content. Keep a lighter watch on business provisions, such as any changes touching bonus depreciation or the qualified business income deduction; treat those in general terms and verify them against current guidance.

If your focus is the business portion, see how these provisions surface in Part 2 preparation and confirm figures before test day.

Is the EA exam format changing for 2026?

The format is not changing because of OBBBA. The structure stays the same, and only the underlying tax law updates. The exam still has three parts, each with 100 multiple-choice questions and a 3.5-hour appointment.

Scoring is also unchanged. The exam uses a scaled score from 40 to 130, and the passing score is 105. Knowing the scale helps you read practice results without treating them as a simple percentage.

• Structure: three parts, 100 multiple-choice questions each.
• Time: 3.5 hours per part.
• Scoring: scaled 40 to 130, with 105 required to pass.
• Administration: PSI Services administers the exam as of March 1, 2026, and the fee is $317 per part.

For more on question types and scaled scoring, read the exam pass-rate analysis alongside your content study.

How should you study the 2026 tax-law changes?

Prioritize updated individual content, and practice with questions that reflect current law. Pair targeted topic review with full-length timed exams so your knowledge and your pacing both match the new material.

VantageEA supports this with practice questions updated for current tax law and timed exams that match the 3.5-hour format, plus analytics that show where your accuracy lags. When a platform's content already reflects the enacted 2025 provisions, you avoid studying superseded figures.

1. Confirm figures: verify every dollar amount against current IRS publications, since annual limits change.
2. Target the changes: focus on SALT, the Child Tax Credit, and the tip and overtime deductions.
3. Practice under time: take timed exams to build pacing across 100 questions in 3.5 hours.
4. Review analytics: use performance data to redirect study toward weak areas.

To gauge where you stand on the updated material, start with a free EA practice test, then read the guide to the enrolled agent exam for a full preparation roadmap.

Study the changes before your test date

The OBBBA provisions are now part of the tested material. Align your study with the May 1, 2026 boundary, and verify each figure against IRS guidance as you practice under exam conditions.