FFM Executive Summary: What the “One Big Beautiful Bill Act” Means for You
Signed into law July 4, 2025
After years of uncertainty surrounding the sunset of the Tax Cuts and Jobs Act (TCJA), a major update has arrived: the One Big Beautiful Bill Act (OBBBA) was signed into law on July 4th, 2025. For many of our clients; including retirees, business owners, high-income professionals, and middle-class families, this new legislation brings both clarity and complexity.
At Fineberg Financial Management, we’ve broken down what matters most so you can make informed, proactive decisions.
✅ What’s Staying (Mostly) the Same
Several key TCJA provisions are now permanent:
- The current tax brackets remain in place.
- The standard deduction stays elevated.
- The 20% Qualified Business Income deduction (Section 199A) continues for eligible pass-through entities.
- The enhanced Child Tax Credit remains available with minor tweaks.
🧩 Why it matters: These changes may present opportunities to explore income strategies, Roth conversions, and small business structures without scrambling for last-minute tax planning each year.
🧾 SALT Deduction Relief — But Not Forever
- The $10,000 SALT deduction cap is raised to $40,000 from 2025–2029.
- This phased relief winds back down for higher earners and resets to $10,000 by 2030.
📍 Planning tip: Clients in high-tax states like California may benefit by timing property tax payments, prepaying state taxes, or reviewing AMT exposure over the next few years.
🎯New Below-the-Line Deductions (2025–2028)
- $6,000 deduction for seniors (65+)
- Up to $25,000 of tips and overtime income deduction
- $10,000 interest deduction on qualifying auto loans
👥 For working families and retirees, this may help reduce taxable income and support more efficient cash flow planning — especially when layered with strategic charitable or health care deductions.
🎁Charitable Giving Just Got a Little Less Generous
- New 0.5%-of-AGI “floor” on charitable contributions
- Cap of 35% of taxable income for the value of itemized deductions for those in the 37% bracket
📌 Implication: Clients with donor-advised funds, foundations, or significant charitable giving goals may want to evaluate the timing of contributions and revisit their giving strategies with a financial professional.
🔍Other Noteworthy Changes
- AMT: Faster phaseouts and lower thresholds
- 529 Plans: Expanded to include K–12 materials and postsecondary certifications
- Qualified Opportunity Zones: Extended
- Gift & Estate Tax: Exclusion rises to $15 million per person
- “Trump Account”: A new IRA that allows early funding without earned income (details pending IRS guidance)
📣 We’ll continue monitoring these developments to support informed estate and wealth planning conversations.
💬What to Do Next
While some provisions are subtle, the overall effect of OBBBA is a reshaping of the personal tax landscape. With new thresholds, temporary opportunities, and longer-term sunsets ahead, now is the time for a midyear strategy session.
Let’s review your portfolio, income, gifting, and estate plans to help you make informed decisions for the years ahead, both now and into the next decade.
📆Ready to plan proactively? Refer directly to us, at hello@finebergfinancial.com or give us a call to schedule your custom tax strategy session.
Warm wishes,
Marah Fineberg-Kuck, CFP® CRPC®
President/CEO
Fineberg Financial Management
The Wise Money Move
Portions of this summary were informed by insights from Ben Henry-Moreland, Senior Financial Planning Nerd at Kitces.com. Ben specializes in writing on tax policy, financial planning, and advisor technology.