Episode Details

On July 4th, 2025 an 870-page tax bill called the 'One Big Beautiful Bill Act' (OBBBA) was signed into to law. Some parts have been heavily discussed and others not so much. So we dug around ourselves and pulled out some hidden messages you may have missed that could have major implications to your FI (Financial Independence) journey.

👉🏽 Updates to 2017 'Tax Cuts and Jobs Act' Makes permanent the lowered individual tax brackets established by the Tax Cuts and Jobs Act and keeps the larger standard deduction in place. Also makes permanent the higher lifetime estate gift tax exemption and increases it to $15 million for single & $30 million for married couples in 2026 (indexed to Inflation).

👉🏽 Updates to 2021 'American Rescue Plan' Expiration of the Enhanced ACA premium subsidies (not directly in the bill, it's just not being extended). The lowered premiums will expire and revert back to pre-covid levels. The Subsidy Cliff will be back in play starting 1/1/26. This is a major part of the negotiation with the current federal government shutdown so may be subject to change.

We cover these topics in the new law:

1. Increased Standard Deduction
2. Extra Senior Deduction
3. SALT (State And Local Tax) Deduction Cap Raised
4. Changes with HSA (Health Savings Account) qualifications
5. Child Tax Credit, Dependent Care FSAs, & Dependent Tax Credit
6. Introduction of Child Savings Accounts
7. 529 College Savings Plan Enhancements
8. Deduction for Charitable Contributions Deduction (even if you take the standard deduction)
9. New Temporary Deductions (2025–2028), Even for those who don't itemize
10. Overhaul of Student Loans

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🌐Full Text of the Bill signed into law on 7/4/25

Newsletter with OBBBA Tax Law Toolkit Includes additional content from trusted resources & experts)

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