Investment Insights

How Does the One Big Beautiful Bill (OBBBA) Affect Me?

Oct 9, 2025

The “One Big Beautiful Bill Act” (H.R. 1) was signed into law by President Donald Trump on July 4, 2025. This sweeping legislation includes tax changes, spending provisions, and funding cuts across various programs. Here are some of the items we’ve been highlighting.

How Does the One Big Beautiful Bill (OBBBA) Affect Me?

The recent tax reform has been top of mind for many of you. Please see below for some highlights that we feel are relevant:

CHANGES TO THE STANDARD DEDUCTION

2025 Standard Deduction:

  • $15,750 for Single or Married Filing Single (MFS)
  • $31,500 for Married Filing Joint (MFJ)

Age 65+: Additional deduction of $2,000 for Single or 51,600 per person MFJ

Prior to the passage of this legislation, the standard deduction was $15,000 for Single &e $30.000 for MFJ for 2025

WHAT CHANGES WERE MADE TO SOCIAL SECURITY TAXATION?

Taxation on Social Security has not been eliminated. Additional tax deductions are available for those who qualify from 2025-2028:

  • Ages 65+: Additional deduction of $6,000 for Single or $12,000 for MFJ. This deduction phases out at $75,000 in income for Single and $150,000 in income for MFJ.

Please consult your tax advisor before making any changes to your tax withholding on Social Security.

NEW CHARITABLE CONTRIBUTION DEDUCTION

$1,000 deduction for single filers and $2,000 deduction for MFJ

  • Not effective until 2026
  • You do not need to itemize in order to be eligible for this deduction

$1,000 DEPOSIT TO “TRUMP ACCOUNTS”

Children born between 2025-2028 are eligible for a $1,000 deposit from the Treasury to a custodial investment account. Implementation details are still being finalized and the program is not active yet.

INCREASED CHILD TAX CREDIT

Credit has increased from $2,000 to $2,200 (this phases out at $200,000 in income for Single and $400.000 in income for MFJ

STATE AND LOCAL TAXES (SALT) CAP INCREASED

The SALT cap has been raised from $10,000 to $40,000 through 2029 (this phases out at $250.000 in income for Single and $500,000 in income for MFJ

Disclosure: IRS guidance is still being finalized, and while we can help you understand the potential impact, we do not provide tax advice. Please consult with your tax professional to see if any of these changes will specifically impact you.

Securities offered through LPL Financial, Member FINRA/SIPC, Investment advice offered through WNY Asset Management, LLC, a registered Investment advisor and is a separate entity from LPL Financial.

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