The Most Important Changes in the One Big Beautiful Bill Explained, Ep #264

Tax laws may not be flashy, but understanding them can tilt the balance for your family’s finances and peace of mind. I’m digging into the details of the much-talked-about “One Big Beautiful Tax Bill”, a huge piece of tax legislation that’s set to impact families, retirees, and investors across the country. I break down the most important highlights from the massive 870-page bill, focusing on what really matters for everyday listeners: permanent income tax brackets, bigger standard deductions, expanded SALT limits, and significant new deductions for seniors. Tune in for clear, actionable insights on the changes coming to your taxes, and learn how to make these updates work in your favor. Outline of This Episode

• [04:27] Tax act extension highlights.
• [07:22] Inflation adjustment for tax brackets.
• [10:38] Tax deduction and SALT cap changes.
• [13:23] Maximize your deductions and minimize taxable income.
• [18:53] Estate tax and deductions update.
• [22:08] Permanent deductions and brackets.
• [23:45] Tax benefits for families.

Tax Brackets and Standard Deduction: More Certainty, Bigger Benefits One of the most interesting aspects of the One Big Beautiful Bill (OBBB) is the permanent extension of the income tax brackets Americans have become accustomed to since the Tax Cuts and Jobs Act (TCJA) of 2017. Instead of the cliff that was looming at the end of 2024, current rates (10%, 12%, 22%, 24%, and 32%) are now here to stay. This certainty means families, investors, and business owners can plan with clarity, knowing that the 10% and 12% brackets won’t suddenly vanish. But there’s more: in 2026, the 10% and 12% brackets will receive extra inflation adjustments, leading to a few hundred dollars of potential tax savings just for staying under those thresholds. While many American households may not climb out of the 12% bracket, those who do will benefit even more. Another major win is the increase in the standard deduction, now $31,500 for married couples filing jointly and $15,750 for single filers, starting in 2025. Add in automatic inflation adjustments, and the vast majority of taxpayers are now better off taking the standard deduction rather than itemizing, unless big deductions, like SALT, tilt the scale. The Expanded SALT Deduction Under OBBB, the State and Local Tax (SALT) deduction cap explodes from $10,000 to $40,000, restoring much of the pre-2017 advantage. For married couples with large property and state income taxes, this unlocks greater ability to itemize rather than default to the standard deduction. But this expanded cap begins phasing out for adjusted gross incomes above $500,000 and is gone by $600,000. Smart, ongoing tax planning, tracking income, maximizing deductions, and timing bonuses or retirement contributions can make the difference between using the full deduction or losing out. Enhanced Deductions for Those 65+ For retirees, the bill introduces a temporary enhanced standard deduction: if you’re over 65, you can...