Josh (intro):
Hi everyone, and welcome to the Wiser Financial Advisor Show, where we get real, honest, and clear about the financial world and your money. Let the financial fun begin!

Jeremy:
Welcome to the Wiser Financial Advisor. This is a podcast takeover—and we are your hosts. I’m Jeremy Busch, Certified Financial Planner with Keystone Financial Services, and with me today is Jen, also from Keystone. Thanks for joining me on this “podcast takeover,” Jen.

Jen:
Thanks for having me. This should be fun.

Jeremy:
We’ve been getting a lot of questions about today’s topic—because new legislation always sparks questions. We’ll be talking about the tax implications of what’s being called the “One Big Beautiful Bill.” This won’t be an all-inclusive explanation, but we’ll hit the main highlights.

Jen:
Some good ones for sure.

Jeremy:
Let’s jump right in.

Tax Brackets and Deductions

Jen:
Jeremy, let’s start with tax brackets. What does this new bill change?

Jeremy:
The 2017 JOBS Act tax cuts were set to expire at the end of 2025, but this bill makes those brackets permanent, with some tweaks. The 10% and 12% brackets are a bit wider, while the 22% bracket is a little narrower—but overall, no major changes. Many people were concerned rates would revert to pre-2017 levels, which would have been a big jump. That’s not happening.

Another big area is standard deductions. Those are increasing slightly—$31,500 for married filing jointly, indexed for inflation. Like before, this makes strategic planning important. For some people, grouping deductions in certain years may make sense.

Jen:
And charitable giving?

Jeremy:
The 60% AGI cap on cash contributions stays in place. That was scheduled to drop back to 50%, but it didn’t. Deductions for donations of items (like to Goodwill) have increased—$1,000 for singles and $2,000 for married filers. Some of these changes start in 2025, most in 2026. Keep saving your receipts.

And of course, qualified charitable distributions (QCDs) are still available if you’re over 70½. If you’re not sure how those work, talk to us—we’ll walk you through it.

Other Key Provisions

Jen:
What about itemized deductions?

Jeremy:
Starting in 2026, high earners in the 37% bracket will see a cap of 35 cents per dollar of income. For most people, this won’t apply, but it’s something we’ll watch for our top earners.

Jen:
And SALT—State and Local Tax deduction?

Jeremy:
That’s a big one. The cap goes from $10,000 to $40,000 for married filing jointly, or $20,000 for singles. But there are income-based phaseouts: singles over $250,000 and married filers over $500,000 will see reductions. Also, this deduction sunsets in 2029. For some, it may make itemizing worthwhile, but it’s not permanent.

Jen:
I’ve also heard questions about Social Security. Some thought this bill removed taxes on it.

Jeremy:
Unfortunately, no. Social Security is still taxable. What the bill did add was an “enhanced senior deduction.” For those 65 and older, the deduction is now $6,000 per person, up from around $1,600–$2,000. But again, there are phaseouts based on income, and this provision disappears in 2028.

Jen:
So it’s more of a temporary offset, not a true elimination.

Jeremy:
Exactly.

New Deductions and Credits

Jen:
What about deductions for tips and overtime?

Jeremy:
Yes—new ones were added. Tips are deductible up to $25,000, regardless of filing status, with income phaseouts starting around $150,000–$300,000 depending on status. But this one also ends in 2028.

Overtime has similar rules—$25,000 max for joint filers, $12,000 for singles. Again, phaseouts apply and it expires in 2028.

Jen:
And auto loans?

Jeremy:
There’s a $10,000 deduction for interest paid on new vehicles bought after 2024, but they must be assembled in the U.S. Income phaseouts apply here too, and it also ends in 2028.

Jen:
Alternative Minimum Tax?

Jeremy:
If you’re not familiar with AMT, you’re probably not subject to it. But for those who are, the SALT deduction gets added back into the AMT calculation starting in 2026. That could expand the number of people affected.

Expiring Credits

Jen:
What about the credits that are going away?

Jeremy:
A big one is the Clean Vehicle Credit for EVs, which ends September 30, 2025. Residential clean energy credits—like solar, wind, or energy-efficient appliances—expire at the end of 2025. The energy-efficient home credit for new builds runs until mid-2026. So, if you’ve been considering upgrades, the clock is ticking.

There’s also a new credit starting in 2027 for qualified education scholarships—$1,700 per taxpayer—but only if your state opts in. It’s complicated and still unclear, but worth watching.

Wrapping Up

Jen:
So the bottom line is: most of these provisions have phaseouts and expiration dates. Planning ahead is key.

Jeremy:
Exactly. Almost everything in this bill comes with an income cap and/or an expiration date. That makes tax planning in the next few years more important than ever. At Keystone, we use specialized tax planning software to model how these rules might affect you, and we help clients build strategies while these opportunities last.

Jen:
That’s why it’s so important to work with an advisor—to know what applies now, and how things may change five or ten years down the road.

Jeremy:
Right. That’s what we’re here for. Jen, this was fun—thanks for helping me take over Josh’s podcast.

Jen:
I enjoyed it.

Jeremy:
And thanks to all of you for tuning in. You can find us at www.keystonefinancial.com
for more information about our team and services.

Josh (closing):
We love your feedback! Email me at josh@keystonefinancial.com
, and don’t forget to subscribe and rate us five stars on Apple Podcasts, Spotify, or your favorite podcast platform.

Disclosure:
The opinions voiced in the Wiser Financial Advisor Show are for general information only and are not intended to provide specific advice or recommendations for any individual. Consult your attorney, accountant, or financial advisor before making decisions. Investment advisory services offered through Keystone Financial Services, an SEC-registered investment advisor.