07/11/2025
Had our first couple of seminars on the tax consequences of the One Big Beautiful Bill Act (HR-1).
A lot to unpack and a lot of guidance still to come from the Department of Treasury, but some general observations:
1-Disappointing that Congress took away the no tax on Social Security provision. But seniors do get an extra $6,000 in deductions.
2-The average family making around $100,000 or less will see significant tax savings immediately and more in 2026.
Running a few scenarios of actual clients, they will save $3,700-$8,900 this year.
3-Couples having babies starting this year can get $1,000 free seed money for opening a college savings account.
4-Small businesses have a lot of savings too.
5-The $10,000 deduction limit on state taxes has been raised to $40,000.
6-No taxes on tips and overtime will be huge savings for individuals. This benefit also started this year. It will be a direct deduction on your return when you file.
Bite - The White House just released some clarification on overtime. The exemption is only for the ‘premium rate’ ie the amount over your regular rate of pay. Typically 1/2 of your normal rate. I’ve put a slide prepared by The National Society of Tax Professionals in the comments
These a lot more to unpack and get guidance on. We will keep you posted!
