What's New: One Big Beautiful Bill Act

Your Lifetime Wealth Strategies Team |

We want to keep you ahead of the curve on new legislation that may impact your financial plan. A major tax bill—nicknamed the “Big Beautiful Bill”—has recently passed, bringing a few key changes starting in 2025. Here's a quick snapshot of what you should know:

 

Standard Deduction Made Permanent (and Increased)

The doubled standard deduction has been made permanent and slightly increased:

  • $15,750 for Single
  • $23,625 for Head of Household
  • $31,500 for Married Filing Jointly

 

New Deduction for Seniors (Age 65+)

Starting in 2025, a $6,000 per person deduction is available for individuals age 65 or older (or $12,000 for couples). This benefit applies whether or not you itemize and is designed to help reduce the taxes you may pay on Social Security income.

Phaseouts begin at $75,000 (single) and $150,000 (married filing jointly).
This deduction is currently available through 2028.

 

Auto Loan Interest Deduction (New for 2025–2028)

You may be able to deduct up to $10,000 in interest on a new, U.S.-assembled personal-use vehicle purchased after January 1, 2024.

Income phaseouts begin at $100,000 (single) and $200,000 (married filing jointly).

Leased or business-use vehicles do not qualify.

 

 

What This Means for You:

These updates may impact how we approach your tax strategy, especially if you're nearing retirement, receiving Social Security income, or planning a new vehicle purchase.

We’ll continue monitoring IRS guidance as forms and details become available. In the meantime, if you have questions or want to talk through how these changes apply to you, don't hesitate to reach out.