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Impacts of the One Big Beautiful Bill Act

  • Writer: Doug Burns
    Doug Burns
  • Jul 25
  • 2 min read

On July 4th, 2025, the One Big Beautiful Bill (OBBB) Act was passed into law.  The law makes permanent many of the 2017 Tax Cuts and Jobs Act (TCJA) provisions that were set to expire at the end of 2025.  Since the law makes permanent the current tax rates, most people will have a similar tax experience to previous years. 

 

There are a few key changes from the previous tax law that are worth highlighting:

 

  • Those over age 65 will now get an extra $6,000/person tax deduction between 2025 and 2028.  This deduction will phase out starting at $75,000 for single filers or $150,000 for joint filers.   This additional deduction could change how we think about Traditional to Roth IRA conversions and which retirement accounts to withdraw from over time.


  • There is a new charitable contribution deduction of $1,000/single and $2,000/joint for those who do not itemize.  If you make charitable contributions in 2025, it is important to document your gifts.


  • The standard deduction for 2025 is now $15,750 for single filers and $31,500 for joint filers.  State and Local Tax Deduction (SALT) is increased from $10,000 to $40,000; however, most individuals with low debt or modest incomes will still take the standard deduction.


  • The federal estate tax exemption is now permanent at $15,000,000/person and portable, meaning a married couple would not pay estate taxes on $30,000,000 of assets.  While the federal limit is higher, New York State still has an estate tax limit of $7,160,000/person.


  • There was a repeal of clean energy tax credits.  The $7,500 credit for a new electric vehicle and the $4,000 credit for a used electric vehicle will terminate on September 30, 2025.  Other residential energy home improvement credits will phase out by December 31, 2025. 

 

We are still analyzing the nuances of the law to take advantage of planning opportunities for our clients.   If you have any questions about how the new tax law affects your personal situation, please don't hesitate to contact us, and we'll be happy to help.

 
 
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