Many of you have been asking about The One Big Beautiful Bill Act and what it might mean – for you, your investments, and your retirement savings. You’re not alone. So in this blog, we’ll cover the major topics and subtopics of the “One BBB Act.”
Everest Financial is committed to assisting current and prospective clients in deciphering this major piece of legislation, which was signed into law on July 4, 2025, by President Donald Trump. It casts a wide net over topics such as income tax, estate planning, and potential business benefits. The new law makes permanent several provisions from the Tax Cuts and Jobs Act of 2017, which significantly reformed the U.S. tax code, impacting both individuals and businesses.
According to The White House’s official “Myth vs. Fact” sheet, “The One Big Beautiful Bill delivers the largest middle- and workingclass tax cut in U.S. history. The President's legislation will put more than $10,000 a year back in the pockets of typical hardworking Families. This is the most pro-growth, pro-worker, pro-family legislation ever crafted.”
For those with plenty of time to read, click here to view the bill in its entirety. For those more interested in a simplified, key points version, check out the topics below, based on the IRS article “One Big Beautiful Bill Act: Tax deductions for working Americans and seniors.”
Regardless, now is a good time to make an appointment with me to discuss this new law or any other questions you might have about wealth management and retirement planning. We are Everest Financial Inc. in Fort Mitchell, KY, and we’re standing by at 859-291-9290, ready to answer your questions about this new law and assist you with all your financial wellness needs.
Here are the key facets of the new law:
Key Tax Rates Extended
The One Big Beautiful Bill Act extended key tax rates from the 2017 Tax Cuts and Jobs Act. Your tax rates of 12%, 22%, 24%, 32%, and 37% are staying put instead of reverting to higher rates. Plus, standard deductions increased to $15,750 (single) and $31,500 (married filing jointly), effective immediately through 2028.
Senior Bonus Deductions
The BBB Act introduces a $6,000 bonus deduction for filers ages 65 and older (on top of your standard deduction). It’s available 2025-28, but phases out starting at $75,000 (single) or $150,000 (married) and eliminates completely at $175,000/$250,000. According to The White House, “The OBBB delivers historic tax relief to seniors, with a new tax deduction that, combined with other deductions, ensures the average Social Security beneficiary will pay zero taxes on Social Security.”
Family Tax Benefits
Parents, the BBB Act has some wins for your family. The child tax credit increases to $2,200 (from $2,000) with cost-of-living adjustments. Plus, babies born 2025-28 get a $1,000 government contribution to a new American Family Account. And 529 plans now cover more K-12 expenses with higher limits.
Car Purchase Deduction
The BBB Act offers a $10,000 deduction on new car loan interest (2025-28) – but the car must be brand-new and final assembly must be in the U.S. Income limits apply too. Meanwhile, most credits end Sept. 30, 2025.
Tax-free Tips and Overtime
These are two of the most written-about items from the BBB Act by far. "No tax on tips" creates a $25,000 deduction for tip income, while "no tax on overtime" offers a $12,500 deduction for overtime pay for single filers and a $25,000 deduction for those filing jointly. Both run from 2025-28 with income phase-outs
Business Owner Benefits
Business owners, take note! The BBB Act permanently establishes the 20% qualified business income deduction for sole proprietorships, partnerships, and S-Corps. It also restores 100% expensing for capital investments and raises the 1099-K reporting threshold to $20,000/200 transactions. The White House said this provision will “help Main Street grow and hire. Failure to pass this legislation would result in a $4 trillion tax hike.”
Estate Strategies
The BBB Act increases estate and gift tax exemptions to $15 million for single filers and $30 million for those filing jointly. Plus, charitable contributions up to $1,000 for single filers and $2,000 for those filing jointly can now be deducted without itemizing.
So there you have it – a summary of several key points of The One Big Beautiful Bill Act. Still wondering what this might mean for you? Then contact me. I have 30-plus years of financial industry experience and multiple designations. Call Everest Financial at 859-291-9290, stop by our Fort Mitchell office at 305 Artillery Park Drive-Suite 202, or visit our website at everestfinancial.net.