By Mike Gibbons, RICP®
The One Big Beautiful Bill Act was signed into law on July 4, 2025, by President Donald Trump, making sweeping changes to the U.S. tax code. The new tax law makes some provisions of the Tax Cuts and Jobs Act (TCJA) of 2017 permanent and enacts new provisions that may impact you and your family for years.
While some effects are yet down the road, now is the time to take advantage of key opportunities—and avoid potential issues. A conversation with a financial advisor at Gibbons Financial Group can help you sift through the complexities of the new tax law and adjust your strategies to your maximum benefit.
Here’s a closer look at what the “Big Beautiful Bill” may mean for you.
TCJA Provisions Made Permanent
The clock was ticking on several provisions of the TCJA that would have expired at the end of 2025 without action from Congress. Here are the provisions the Big Beautiful Bill made permanent:
The Seven Tax Brackets: A top rate of 37% and a bottom rate of 10%, with no annual inflation adjustments for the top rates
Estate and Gift Tax Exemptions: Increased to $15 million for individuals and $30 million for married couples, indexed for inflation
The Standard Deduction: Increased to $15,750 for single and married filing separately, $31,500 for married filing jointly, and $23,625 for head of household
The Child Tax Credit: Increased to $2,200 from $2,000 starting in 2025
The SALT Deduction: Increased to $40,000 for married filing jointly ($20,000 for married filing separately) with a phase-out for incomes above $500,000
Charitable Deductions: Restored the deduction of $2,000 for couples that take the standard deduction or $1,000 for single filers
Making these provisions permanent preserves the tax relief high-net-worth individuals gained in 2017 and offers new opportunities for strategic tax planning.
Temporary Provisions of the Big Beautiful Bill
The Big Beautiful Big also ushered in a few tax changes only available until 2029. They include:
Senior Tax Deduction
If you’re 65 or older, you may be eligible for a deduction of $6,000 ($12,000 for married couples 65 or older). The deduction begins to phase out at $75,000 for single filers and $150,000 for married couples filing jointly.
Car Loan Interest Deduction
You can take a $10,000 deduction on interest on your car loan if the vehicle was assembled in the U.S. The deduction is available to single filers making $100,000 or less or married joint filers earning $200,000 or less.
No Taxes on Tips or Overtime
The Big Beautiful Bill allows you to deduct up to $12,500 in overtime ($25,000 if married filing jointly) and tip income. The deduction begins to phase out for an individual filer earning $100,000 or a married couple earning $300,000.
The new deductions begin in 2025 and are set to last through 2028.
New Savings Accounts
Lastly, the Big Beautiful Bill added a couple of opportunities for tax-advantaged saving:
Savings Account for Children
A Trump Account could allow you to save up to $5,000 tax-exempt per year up to a child’s 18th birthday. Children born between January 1, 2025, and December 31, 2028, can qualify for $1,000 in federal seed money.
Savings Account for Education
Congress expanded the 529 education savings account for elementary and secondary education, including private and religious schools. It can also cover testing fees, tutoring, and more. The money in the account grows tax-free and can be withdrawn tax-free for qualified expenses.
Talk to a Financial Advisor About the Big Beautiful Bill
The passing of the One Big Beautiful Bill Act is a chance to plan for strategic deductions and higher exemptions. Gibbons Financial Group can help you simplify the complex decisions you face, including maximizing your benefits from the new tax legislation.
Take advantage of the Big Beautiful Bill today. Call 224-419-5550 or email me at Mike@gibbonsfinancialgroup.com to schedule a complimentary consultation. And be sure to join our free webinar, Retiring Early From Pharma.
About Mike
Michael J. Gibbons is founder and president of Gibbons Financial Group, an independent advisory firm providing custom-tailored financial planning and investment management services to pharmaceutical and healthcare professionals and their families. Mike has over 25 years of experience and spends a significant portion of his day working with pre-retirees and retirees, focusing on asset management, Social Security and pension planning, as well as retirement income preparation.
Mike has degrees in both business and psychology from Lake Forest College and currently holds his Retirement Income Certified Professional (RICP®) designation from the American College. Mike was named a Five Star Wealth Manager for 2016 and 2018* Mike is heavily involved in his community, having served on the Village of Gurnee Police Pension Board as a Community Volunteer and the St. Patrick’s Parish Financial Board. When he’s not working or volunteering, Mike loves playing golf and spending his time with his wife and children. To learn more about Mike and how he can help you, connect with him on LinkedIn, visit his website, and register for his free webinar, Retiring Early From Pharma, created specifically for professionals retiring from the pharmaceutical, biotechnology, and healthcare industries.
*Award based on 10 objective criteria associated with providing quality services to clients such as credentials, experience, and assets under management among other factors. Wealth managers do not pay a fee to be considered or placed on the final list of 2016/2018 Five Star Wealth Managers.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.