Given the recent headlines around the passage of the new “Big Beautiful Bill,” we wanted to cut through the noise and focus on what actually matters for you and your financial plan.
Here are the key areas we’re paying attention to:
✅Tax Brackets Made Permanent
The individual tax brackets—originally set to sunset in 2025—are now permanent including increased standard deduction (adjusted for inflation). This provides long-term clarity and allows us to be more strategic in areas like Roth conversions, charitable giving, and harvesting gains or losses.
✅SALT Deduction Cap Increased
The state and local tax (SALT) deduction cap will rise to $40,000for joint filers starting in2025and ending in2029. With phaseouts beginning at$500,000 of income.
✅New Deduction for Seniors
Beginning in 2025(through2028), taxpayers age 65+ will receive a$6,000 Senior Deduction, which phases out at$75,000 (single)or$150,000 (MFJ).
For couples filing jointly where both spouses are over 65, this could mean a$12,000 additional deductionon top of the standard deduction.
This added deduction can help reduce how much of your Social Security is taxed and may create more room for Roth conversions at lower effective tax rates.
✅New Deductions: Tip Income, Overtime, & Auto Loan Interest
All effective 2025 through 2028:
- No tax on the first $25,000 of tips
- No tax on the first $12,500 of overtime
- Deduct up to $10,000 in interest on loansfor new U.S.-assembled vehicles
These deductions are subject to income-based phaseouts, with thresholds beginning at$150,000 (single)and$300,000 (MFJ)for Tax/Tips. $100k (Single) and $200k (MFJ) for interest on loans.
As you know, taxes are a year-round sport. We’re already modeling how they may impact your plan and what steps can be taken now to reduce your lifetime tax bill.
If you have any questions or would like to talk through how this might apply to your situation, don’t hesitate to reach out.
Your Partners in Financial Freedom,
The Apeiron Team
📅Book Online:https://www.aperionplanning.com/schedule-appointment
📧Email: info@aperionplanning.com
📞Call: (972) 421-2068