#159 - SPECIAL EDITION...Provisions of the "One Big Beautiful Bill Act" most likely to impact your tax return
In the SPECIAL EDITION episode, Andy summarizes the key provision of the recently signed into law One Big Beautiful Act that are most likely to impact you and your tax return. The topics summarized are:Permanency of the current federal tax ratesPermanency, and a slight increase, to the current standard deduction amountsA new temporary personal exemption up to $6,000 per person 65 or olderPermanency, and a slight increase, to the lifetime gift and estate size exemptionPermanency of the current Alternative Minimum Tax exclusion amount, but reduction/reversion of its income phase out levelsPermanency of the $750,000 limit on residential mortgage principal against which interest can be deductedPermanency of the elimination of miscellaneous itemized deductionsTemporary increase to $40,000 for State and Local Tax ("SALT") deductionsA new permanent charitable deduction for people who use the standard deductionA new minimum AGI-based floor on charitable donations before donations can be itemized deductionsA temporary exclusion from income tax of up to $25,000 tip incomeA temporary exclusion from income tax of up to $25,000 of overtime incomeA temporary deduction of up to $10,000 of interest loans to buy cars whose final assembly was in the U.S.Recissions of multiple "Green New Deal" tax credits such as electric vehicle credits and residential clean energy creditsCreation of new "Trump" savings accounts for children under 18And the bill having NO changes with regards to how Social Security is taxed (i.e. the bill did NOT make Social Security not taxable)Links in this episode:Final text of the One Big Beautiful Bill Act - hereMy written summary of the key individual income tax provisions of the One Big Beautiful Bill - hereTo send Andy questions to be addressed on future Q&A episodes, email
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