By Tim Russell, CKA®, CFP®, and Angel Sotomayor, CPA, MST
Originally shared on the Life in the Markets podcast — 08/14/2025
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In this special midweek edition of Life in the Markets with Life Financial Group, Tim Russell, CFP® and Angel Sotomayor, CPA, MST break down the specifics of the One Big Beautiful Bill Act. This bill, signed into law on July 4th, 2025 impacts most taxpayers in different ways.
To get the most out of this topic, please watch the video or listen to the podcast.
We discuss the following topics:
What Everyone Needs to Know
- Make permanent many provisions of TCJA
- Ended some provisions from the Inflation Reduction (Producing) Act
- End credit on E vehicles, clean energy…
- Tax Rate Changes
- Higher Standard Deduction ($6,500 to $15,750 single; and $13k for Joint to $31.5k for Married)
- No personal exemption (make permanent)
- Discuss above-the-line and below-the-line deductions
Misc Provisions (Temporary…)
- No tax on tips $150k Single / $300k Married
- No tax on overtime $150k Single / $300k Married
- No tax on interest for new American Car loans (Temporary…)
- $200k married / $100k single (with $100k phase-out)
Tax Impact for Seniors
- Additional Deduction for Seniors ($6,000 for 65+)
- Income limit: $75k single / $150k married ($100k phase-out) — Temporary…
Tax Impact for Parents/Kids
- Difference between deduction and credit
- Child Tax Credit was scheduled to drop to $1k, but is now permanently increased to $2,200 + inflation bump
- Trump Account
- 529 changes
- Estate and Gift Tax exemption was going to revert to $5m after 2025 but is now set permanently to $15m
- Annual gifting limit $19k
Changes to Schedule A Itemized Deductions
- SALT cap from $10k to $40k up to $500k income. Drops back to $10k in 2030.
- PMI insurance is now deductible
Changes for Charitable Giving
- Schedule A Charitable deductions will now have a 0.5% AGI floor (hurdle) before cash donations are deductible
- Below-the-line deduction of $1k (Single) or $2k (MFJ) for charitable gifts (cash)
Changes for Businesses and Business Owners
- QBI
- Bonus Depreciation
- And other incentives
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Have questions or topics you’d like us to cover in a future episode? Email us at contact@thelifegroup.org with “Life in the Markets” in the subject line.
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Disclaimer: The topics discussed here are for informational purposes only and do not constitute specific investment advice. Investing involves risks, including potential loss of principal. Past performance does not guarantee future results. Securities and advisory services offered through Geneos Wealth Management, member FINRA/SIPC.
