What the “One Big Beautiful Bill Act” Means for Your Finances
On July 4, the “One Big Beautiful Bill Act” was signed into law, marking one of the most sweeping sets of tax and financial reforms in recent memory. At nearly 900 pages, the bill covers everything from Medicare premiums to new savings accounts for children. But at its heart, it reinforces something we’ve long believed at Holistic Planning: financial decisions are interconnected. And keeping everything under one roof—investments, taxes, estate planning—just makes sense.
If you’re wondering how this new legislation could impact your financial life, we’ve summarized the most relevant provisions below, along with insights to help you navigate what’s ahead with more clarity and confidence.
A New Chapter in Financial Legislation
While tax laws evolve often, comprehensive updates like this one are rare and consequential. For individuals, families, and business owners, the “One Big Beautiful Bill Act” introduces meaningful changes across a range of planning areas, including deductions, credits, savings vehicles, and estate thresholds.
Let’s break down what’s changing, and how it may affect your financial plan.
Key Tax Planning Updates
1. Medicare Premium Deductions for the Self-Employed
If you’re self-employed and don’t have access to a group health plan through a spouse or business, you can now deduct Medicare Part B, Part D, Medicare Advantage, and supplemental premiums—even if you take the standard deduction.
Why it matters: This change provides much-needed tax relief for solo business owners and contractors who have historically faced higher out-of-pocket costs for health coverage in retirement.
2. Lower Tax Rates Made Permanent
The 2017 Tax Cuts and Jobs Act introduced temporary lower tax brackets, which were set to expire in 2025. This bill locks them in permanently, ensuring the 10% to 37% rates stay in place. In addition, the standard deduction will increase in 2025 to $15,750 (single) and $31,500 (joint).
Why it matters: This creates planning consistency for individuals and families, especially for those doing Roth conversions, charitable gifting, or income distribution strategies in retirement.
3. Estate & Gift Tax Exemption Extended
The exemption thresholds were scheduled to sunset but have now been extended indefinitely. Starting in 2026, the limits will rise to $15 million for individuals and $30 million for married couples.
Why it matters: This offers more flexibility for legacy planning and creates new opportunities for families to transfer wealth efficiently.
4. SALT Deduction Cap Temporarily Raised
The state and local tax (SALT) deduction cap increases to $40,000 in 2025 and will grow by 1% each year through 2029. It will return to the original $10,000 cap in 2030. A phase-out applies for households earning more than $500,000 in modified adjusted gross income.
Why it matters: This is a limited window to benefit from higher deductions, especially for residents of high-tax states. It may also affect year-end tax strategies for charitable giving or income shifting.
5. New Senior Bonus Deduction
From 2025 through 2028, taxpayers age 65 and older can claim an additional deduction of $6,000 for single filers or $12,000 for joint filers. The benefit phases out at $75,000 and $150,000 of income, respectively.
Why it matters: This additional deduction may help retirees reduce taxable income and manage Medicare premiums or required distributions more strategically.
6. Charitable Deduction for Non-Itemizers
In a notable shift, beginning in 2026, charitable contributions will once again be deductible even if you take the standard deduction—up to $1,000 for individuals and $2,000 for joint filers.
Why it matters: More households can now receive a tax benefit for giving, even if they don’t itemize. This is an excellent opportunity for those with a heart for generosity to give more efficiently.
7. Increased Child Tax Credit
The Child Tax Credit will increase to $2,200 per child beginning in 2025. Phaseouts begin at $200,000 for single filers and $400,000 for joint filers.
Why it matters: The higher credit provides meaningful support for families managing the rising costs of childcare, education, and everyday living.
8. Car Loan Interest Deduction
Through 2028, up to $10,000 of interest on U.S.-assembled vehicle loans is deductible, subject to income limits and new loan acquisition.
Why it matters: For families or small businesses considering a vehicle purchase, this deduction adds another planning opportunity—especially for those prioritizing energy efficiency or U.S. assembly.
9. Deduction for Tips and Overtime
From 2025 to 2028, eligible workers can deduct up to $25,000 of reported tips and $25,000 of overtime pay. Single filers are capped at $12,500 for each. These deductions phase out at $150,000 (individual) and $300,000 (joint) of MAGI.
Why it matters: For many workers in hospitality, healthcare, and shift-based jobs, this deduction can reduce tax burdens and boost net income during peak earning years.
Financial Planning Provisions
1. Expanded 529 Plan Benefits
Beginning in 2026, 529 education savings plans will be eligible for more flexible use—covering up to $20,000 annually for K–12 tutoring, dual enrollment, and educational therapy. Additionally, the student loan repayment limit increases from $10,000 to $25,000, and rollovers into ABLE accounts are now permanent.
Why it matters: These changes offer more flexibility for families using 529 plans, not just for college, but for ongoing education support in childhood and adolescence. For families caring for children with special needs, the ability to roll over funds into ABLE accounts adds a valuable long-term planning option.
2. New “Trump Accounts” for Children
Children under the age of 18 will be eligible to have a Trump account opened for them starting July 2026 with contributions capped at $5,000 per year. Children born from Jan. 1, 2025, through 2028, will be granted $1,000 in seed money by the Treasury to invest in these accounts.
Contributions are made with after-tax dollars, and earnings grow tax-deferred. Withdrawals are taxed as ordinary income on the gains only—not the original contributions. Funds cannot be accessed before the beneficiary turns 18, and unless the beneficiary is age 59½ or older, distributions must be used for qualified expenses to avoid a 10% penalty.
Why it matters: Trump Accounts give families a new option to save for a child’s future with tax-deferred growth and built-in incentives to keep funds invested over time. They offer another long-term planning option for families focused on building financial habits early and saving for a child’s future alongside other tools like 529s or Roth IRAs.
What It Means for Your Plan
Taken together, the provisions in this bill present new opportunities and potential pitfalls for long-term planning. Many of the changes expand benefits, offer targeted tax relief, or simplify legacy planning. But others come with expiration dates or require thoughtful integration across your financial picture.
At Holistic Planning, we believe moments like this are a reminder of why having one coordinated team across tax, investment, and estate planning matters. When legislation changes, your plan should adapt. Not just one piece of it, but all of it.
One Last Thing
The “One Big Beautiful Bill Act” brings with it new opportunities to save, give, and plan with more precision. But like any financial legislation, the details matter. How they apply to your life may be different than someone else’s.
As fiduciary advisors, we’re committed to helping you understand what’s changed and make confident, informed decisions. If you have questions about how any of these provisions apply to you, reach out to your Holistic Planning advisor or schedule an introductory call here.
Past performance does not guarantee future results. This article is for educational purposes only and should not be considered personalized investment advice.
Investment advisory services are offered under Uptick Partners, LLC. Holistic Planning, LLC is a DBA of Uptick Partners, LLC, a Registered Investment Adviser.
The information presented in this article is for general informational and educational purposes only and does not constitute personalized investment advice or a recommendation to buy or sell any specific securities or investment strategies.
All opinions expressed are those of the author as of the date of publication and are subject to change without notice. Any references to past market performance or potential outcomes are not guarantees of future results. Investment decisions should be based on an individual’s goals, risk tolerance, and financial circumstances. All investments carry risk, including the possible loss of principal. Certain alternative investments mentioned, such as REITs, private credit, or commodities, may involve increased complexity, reduced liquidity, and unique risk factors that may not be suitable for all investors.
Before making any financial decisions, readers are encouraged to consult with a qualified financial professional. The views expressed may not reflect those of Uptick Partners, LLC as a whole. Uptick Partners, LLC does not guarantee the accuracy or completeness of any information contained herein and is not responsible for any errors or omissions.
