Retire With Purpose - The Retirement Podcast 513: The One Big Beautiful Bill Act: What It Really Means for Your Retirement Taxes
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Aug 1, 2025 Discover how the One Big Beautiful Bill Act reshapes your retirement tax landscape. Learn about new standard deductions for seniors and the nuanced implications of capital gains and Social Security taxation. The podcast delves into the evolving tax landscape, including changes to itemized deductions and benefits for 529 plans. Explore the introduction of specialized retirement accounts for children and the potential advantages of Qualified Opportunity Zones. Stay informed on proactive tax planning strategies to maximize your benefits!
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Permanent TCJA Tax Cuts
- The One Big Beautiful Bill Act permanently extends the Tax Cuts and Jobs Act tax rates, providing stability for retirees.
- Lower tax brackets (10% and 12%) are reset to 2016 inflation values, slightly widening them.
Capital Gains Tax Nuance
- Retirees in the 10% or 12% tax bracket can sell long-term capital gains assets without paying taxes on those gains.
- The alignment between capital gains brackets and income brackets is slightly off, requiring closer attention.
Senior Additional Deduction Advice
- Seniors aged 65+ receive a temporary additional standard deduction from 2025 to 2028, adding up to $6,000 per individual or $12,000 per couple.
- Higher income seniors should be aware of the phase-out thresholds ($175,000 single, $250,000 joint) for this deduction.