Episode 201: OBBBA and You: How the “One Big Beautiful Bill” Reshapes Retirement Taxes

In this episode of Retire with Style, hosts Alex Murguia and Wade Pfau are joined by CPA Brett Leyton to discuss the new tax provisions introduced in the One Big Beautiful Bill Act. The conversation covers essential topics such as federal income tax brackets, standard deductions, and various new below-the-line deductions that can benefit taxpayers, especially seniors. The episode delves into the complexities of tax planning, emphasizing the importance of strategic planning in light of the new legislation. Listeners will gain insights into how these changes can impact their financial planning and tax strategies moving forward.

 

Takeaways

• Tax planning is crucial for all income levels.
• The complexity of tax rules requires comprehensive planning.
• New tax brackets simplify some aspects of tax planning.
• Standard deductions have significantly increased for 2025.
• Seniors can benefit from additional below-the-line deductions.
• Qualified business income deductions are now permanent.
• New deductions for tips and overtime pay are introduced.
• Auto loan interest deductions have specific requirements.
• Charitable contributions can be deducted even if not itemizing.
• Understanding phase-outs is essential for effective tax planning.

Chapters

00:00 Introduction to Tax Planning and the One Big Beautiful Bill Act
02:54 Understanding Federal Income Tax Brackets
06:11 New Below-the-Line Deductions: Age 65 Plus
09:07 Qualified Business Income and Its Implications
11:51 Exploring Qualified Tips and Overtime Pay Deductions
14:59 Auto Loan Interest Deductions Explained
17:45 Charitable Contributions for Standard Deduction Filers
21:03 State and Local Tax Deductions: Changes and Challenges

 

Links

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This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/retirement-income-planning-llm/ to download McLean’s free eBook, “Retirement Income Planning”