The New Bill – The OBBBA. We know it legally as H.R.1. This U.S. federal statute was signed into law on July 4, 2025 and is also known as The One Big Beautiful Bill Act. It introduces sweeping tax and financial changes aimed at simplifying deductions, supporting families, and incentivizing education and business growth.
The impacts are nuanced, client specific, and may be subject to income limitations, but you can expect SYM Financial Advisors to strategize according to your unique financial picture.
Here’s a summary of the most impactful updates:
📊Standard Deduction Increases For 2025
- Single: $15,750 (↑ $750)
- Married Filing Jointly: $31,500 (↑ $1,500)
- Head of Household: $23,625 (↑ $1,125)
- Additional Senior 65+ Deduction (2025–2028): $6,000 per individual, subject to phase-outs
💸 Itemized & Charitable Deductions
- State and Local Taxes (SALT) Deduction (2025–2029): Raised the cap from $10,000 to $40,000 (Married filing jointly, Single, or Head of Household) before phase-outs
- High Income Deduction Cap (2026+): Essentially limits itemized deductions to a maximum benefit of 35% when offsetting ordinary income or 19% when offsetting capital gains.
- Charitable Deduction Reduction (2026+): 5% Adjusted Gross Income (AGI) reduction for itemized charitable deductions
- Charitable Deductions (2026+):
- $1,000 (Single) / $2,000 (Married filing jointly) for non-itemizers (must be a cash contribution only)
🚗Other Notable Deductions
- Car Loan Interest (2025–2028): $10,000 deduction for U.S.-assembled vehicles.
- Tips & Overtime (2025–2028):
- $25,000 tip income deduction
- $12,500 (Single) or $25,000 (joint filers) overtime deduction
- Compensation in excess of regular rate of pay
- Educator Expenses: Now itemizable with a 2% AGI limit.
🧒Family & Education Benefits
- 529 Plan Enhancements:
- Annual K–12 withdrawal limit doubled to $20,000
- Expanded to include curriculum, dual enrollment, tutoring, and post-secondary credential programs
- Note: States have a choice whether to adopt this federal rule so this may not apply where you reside
- Child Tax Credit:
- Increases child tax credit to $2,200 for 2025 (previously $2,000).
- Estate and Gift Tax Exemption (2026+):
- Permanently increases the exemption to $15,000,000
- TRUMP Account Add-on (2025-2028):
- Contributes $1,000 to new account for births
- $5,000 in annual contributions allowed up to age 18
🏢Business & Investment Incentives
- Qualified Business Income (QBI) Deduction: 20% deduction made permanent.
- Bonus Depreciation: 100% reinstated for assets placed in service after Jan 19, 2025
📝Key Takeaways
Business owners and educators gain new deduction opportunities. Education planning is impacted with broader support for 529s and new TRUMP accounts. Charitable giving will affect large transactions as we plan around the new AGI floor that begins in 2026.
SYM Financial Advisors is on the details! Our advisory teams will evaluate with you the changes that may affect your specific situation. If you do not have a SYM Financial Advisors working for you, contact us today.
Disclosure: SYM is an independent investment adviser registered under the Investment Advisers Act of 1940, as amended. Registration does not imply a certain level of skill or training. More information about SYM including our investment strategies, fees, and objectives can be found in our ADV Part 2 or Form CRS, which is available upon request.
