Big Beautiful Bill, Big Tax Changes – What You Need to Know

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Every week, I share insights designed to help you build wealth with intention, reduce tax stress, and create lasting financial peace — in both your personal and business life.

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Now, let’s dive into this week’s strategies to help you move closer to true financial harmony…

Reader, On July 4th, President Trump signed into law the One Big Beautiful Bill Act (OBBBA) — a sweeping piece of legislation that will touch nearly every American taxpayer.

Now, you probably don’t have time (or interest) to flip through all 900+ pages of tax code updates — and honestly, you shouldn’t have to. That’s where I come in. I’ve broken down the highlights you actually need to know and what they could mean for your tax strategy.

What Just Became Permanent?

✔ Tax Brackets Stay Put – The income tax brackets from the 2017 Tax Cuts and Jobs Act are now permanent. (10% through 37%).

✔ Estate & Gift Tax Exemption – Starting in 2026, you can pass along up to $15 million tax-free in your lifetime (double for couples).

✔ Alternative Minimum Tax (AMT) – Kicks in sooner for high-income households (over $1M for couples).

✔ 20% QBI Deduction – More business owners qualify for the pass-through income deduction.

✔ Bigger Standard Deduction – Starting in 2025, $31,500 for couples, $15,750 for singles — with inflation adjustments.

✔ Charitable Deduction (for non-itemizers) – Even if you don’t itemize, you can deduct up to $2,000 joint / $1,000 single starting in 2026.

📝 What’s Changing with Itemized Deductions

High earners get a little less bang for their buck (deductions capped at 35% savings).
Charitable donations now have a small floor (must exceed 0.5% of AGI).
New scholarship donation tax credit coming in 2027 — dollar-for-dollar tax savings!

🎓 Education Perks

529 Plans are more flexible: up to $20K for K–12 tuition, plus career training and test prep.
Employer educational assistance is now permanent — including student loan help up to $5,250/year.

⏳ New & Time-Limited Provisions

SALT Deduction: Raised to $40K for many taxpayers (2025–2029).
Tips & Overtime Deduction: Up to $25K for workers earning under $150K (2025–2028).
Auto Loan Interest Deduction: Up to $10K on U.S.-made vehicles (2025–2028).
Senior Deduction: Up to $12K for couples over 65 (2025–2028).
Child Tax Credit: Increasing to $2,200 per child (indexed for inflation).
“Trump Accounts”: $1,000 starter savings account for babies born 2025–2028.

💡 What This Means for You

The One Big Beautiful Bill Act is designed to reshape how families, entrepreneurs, and nonprofits plan for taxes, wealth transfer, and giving back. Some of these changes could work in your favor — but only if you adjust your strategy early.

Here’s the truth: the tax code wasn’t written with simplicity in mind. But that’s why I’m here — to translate the law into clear action steps that help you keep more of what you earn, protect your wealth, and maximize your giving.