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 rates
- Permanency, and a slight increase, to the current standard deduction amounts
- A new temporary personal exemption up to $6,000 per person 65 or older
- Permanency, and a slight increase, to the lifetime gift and estate size exemption
- Permanency of the current Alternative Minimum Tax exclusion amount, but reduction/reversion of its income phase out levels
- Permanency of the $750,000 limit on residential mortgage principal against which interest can be deducted
- Permanency of the elimination of miscellaneous itemized deductions
- Temporary increase to $40,000 for State and Local Tax ("SALT") deductions
- A new permanent charitable deduction for people who use the standard deduction
- A new minimum AGI-based floor on charitable donations before donations can be itemized deductions
- A temporary exclusion from income tax of up to $25,000 tip income
- A temporary exclusion from income tax of up to $25,000 of overtime income
- A 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 credits
- Creation of new "Trump" savings accounts for children under 18
- And 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 - here
- My written summary of the key individual income tax provisions of the One Big Beautiful Bill - here
To send Andy questions to be addressed on future Q&A episodes, email andy@andypanko.com
