The “One Big Beautiful Bill Act”
What It Means for Your Future Financial Planning
As many of you already know, President Trump signed the “One Big Beautiful Bill Act” (OBBBA) into law this July. It’s sweeping legislation that goes far beyond taxes, but here at Infinite Wealth, we’re focused on what matters most to our clients: how the new rules affect your lifetime tax bill and what we can do to plan around it.
The bill is dense, with lots of phaseouts, expiration dates, and thresholds. Going forward, strong planning and smart software will be essential.
Here are the key highlights we’re already helping clients navigate:
Tax brackets made permanent
The lower tax rates from Trump’s first term are here to stay (at least for now). While “permanent” doesn’t mean untouchable, it removes the 2026 cliff we were preparing for.
SALT deduction cap increased to $40K (expires after 2030)
Applies to those earning under $250K (single) or $500K (joint). Above that, the deduction phases back down to $10K.
- For many, this makes itemizing worthwhile again—and creates strategic opportunities to “bunch” deductions or time income.
- For those in the phaseout ranges, it may be worth considering strategies to plan around the increased tax due to those phaseouts.
Estate exemption locked in at $15M/person permanently, and indexed for inflation
A big win for families in the $5–$20M range as it removes the urgency for complex estate strategies that had been created by the expected reversion to previous (lower) limits. However, planning is still crucial as these rules may again change in the future.
New $6K senior deduction (expires after 2028)
Available to taxpayers 65+, either on top of the standard deduction or as part of itemized deductions. This rule, while well-intended, creates additional complexity for seniors as new phase-outs create complicated tax effects that require careful planning. Because of this, Income management in retirement matters more than ever.
Charitable deduction changes
Starting in 2026, non-itemizers can deduct up to $1K (single) or $2K (joint) above the line deduction. For high earners, a new haircut limits how much of your giving is deductible. This is a big win, as many were not benefiting from their cash donations since 2017, so this rule will bring tax relief to those who donate smaller sums of money.
Auto loan interest deduction (up to $10K/year)
For the first time in a long time, there are now some tax benefits to financing your personal car that could be worth planning around. This deduction applies to new, U.S.-assembled vehicles bought through 2028. Phases out above $100K (single) or $200K (joint).
Small business wins
Bonus depreciation is back, allowing business owners large tax breaks on depreciable assets. The “Qualified Business Income” (QBI) deduction has been extended, continuing to reduce taxes on small business owners, and rules around qualified small business stock for founders have been expanded to allow for more tax favorable exits. If you are a business owner or founder, these updates offer serious tax savings to plan for.
No tax on tips or overtime (expires after 2028)
Workers can now deduct up to $25K/year in tips and up to $12.5K (single) or $25K (joint) for overtime. Only the premium portion of overtime counts, and both benefits phase out above $150K/$300K AGI.
“Trump Accounts” for kids born 2025–2028
New parents get a $1,000 federal contribution, with annual contributions up to $5,000. While this proposal initially looked attractive, the long-term tax benefits to these accounts are not as good as many of the existing strategies we use for clients today, so we may not see these accounts gain as much prevalence as hoped.
Rollback of previous green energy tax credits
Various tax credits (including tax credits on EV vehicles) are now set to expire in September of 2025 as opposed to the previous expiration in 2032. If you’ve been in the market for an electric car, it may make sense to “accelerate” your search.
Wrapping it Up
Remember, the value of your financial plan is maximized when all the pieces are working together. As you prepare for the upcoming tax season with your CPA, please know that we are here to support that process. A proactive partnership between your advisor, your tax professional, and you ensures we can make confident, informed, and purpose-driven decisions throughout the entire year.
This bill creates real planning opportunities, but also plenty of traps for the unprepared. Income limits, sunset dates, and “hidden cliffs” make it critical to stay ahead.
If you’re already a client, we’re layering this into your plan. If not, and you’re wondering how this all applies to you, we’d love to connect.
Thanks For Reading! We Hope To See You Again!
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Advisory services offered through National Wealth Management Group, LLC, a Registered Investment Adviser. This information is intended for educational purposes and is not intended as a recommendation to buy or sell securities. Investing involves risk. Before investing, you should consult with a financial advisor to determine how a specific investment strategy fits your personal goals and objectives.
