It’s official, the One Big Beautiful Bill Act (OBBBA) was signed into law on July 4th, 2025, making significant impacts on tax rates, deductions, and various credits.
This by no means is a summary of ALL the changes from OBBBA, but I attempted to summarize what I believed was most relevant to our listeners and clients (folks nearing or in retirement, saved over $1million, excluding primary residence, mostly in tax-deferred vehicles).
In addition to the key tax changes, I’ll also break down 3 client examples and how OBBBA impacted their taxes in 2025. Finally, I will discuss 7 planning opportunities to consider.
I hope you find it helpful.
If you are interested in learning more about working with our firm, you can visit our website or fill out the Retirement Readiness Questionnaire below.
-Kevin
Takeaways:
- The OBBBA has made current tax rates permanent, preventing increases in 2026.
- Standard deductions have been slightly increased and made permanent.
- Bonus deductions for taxpayers over 65.
- Social security income remains taxable, despite misconceptions about tax-free status.
- Child tax credits have been permanently increased to $2,200 per child.
- Business owners benefited with QBI deduction and 100% bonus depreciation.
- The SALT deduction cap has been raised to $40,000, benefiting high-tax state residents.
- Service workers can now deduct tips up to $25,000, making their income more tax-efficient.
- The estate and gift tax exemptions have been permanently increased to $15 million for individuals and $30 million for couples.
- The AMT exemption has been extended, but phase-out rules have reverted to previous levels.
- Planning opportunities exist for those over 65 to maximize deductions and manage tax liabilities.
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This is for general education purposes only and should not be considered as tax, legal or investment advice.
