The One Big Beautiful Bill became law in July of 2025, and the effects will be felt for generations. By making the 2017 Tax cuts permanent we can now count on these lower rates being with us for a while.
There were also many new deductions for working families such as Reduced taxes on Overtime and tips, Increased Child Tax Credits, and the creation of American Family savings accounts for newborns.
Let’s look at some of the new provisions from the OBBB that Seniors and Soon-to-Retires should know about.
One- There is one specific new tax change for those ages 65 and older. This allows for an extra $6000Deduction ($12,000 for a couple) on top of the Standard Deduction. Although Social Security did not become tax-free as many had hoped, this does appear to provide some relief for most Seniors.
Big- The Estate and Gift Tax Exemptions increased to $15 million per person and were made permanent. The limit was due to drop to $7 million, which would have left some Seniors scrambling to re-evaluate their estate planning.
Beautiful- A new $1000 per person deduction for Charitable Donations in addition to the Standard and Senior Deductions. Americans are very generous, and this extra deduction will reward that.
Bill- For many Seniors their biggest bill of the year tends to be their property taxes. The State and Local Tax (SALT) Deduction will jump from $10,000 to $40,000 for the 2025 tax year hopefully allowing more people to take advantage of itemizing for higher deductions than the Standard.
How will these changes impact you?
It looks like if your income remains close to the same as last year the OBBB should result in some rather significant tax reductions in 2025 for those 65 and older. Please make sure to discuss these changes with a tax professional. And if you would like to do some additional proactive tax planning, please contact us to see if our services may help.
The information in this material is not intended as tax or legal advice and may not be used for the purpose of avoiding any federal tax penalties. So, please consult legal or tax professionals for specific information regarding your individual situation.
Advisory Services are offered through IFG Advisory, LLC, a registered investment advisor. Golden Isles Financial Advisors and IFG Advisory, LLC are separate entities.
