PART 3 of our 3-Part Series Breaking Down the New Tax Law Changes
The One Big Beautiful Bill Act introduces a wide range of tax changes aimed at helping Americans across different life stages—from early-career workers to families and those approaching retirement. Whether you're earning tips, raising kids, or planning your estate, the bill includes new deductions, expanded credits, and planning opportunities designed to support your financial goals. The following sections break down key provisions to help you understand what’s changing and how you can prepare.
Part 3: Tax Planning for Individuals Approaching Retirement
Bonus Deductions, Charitable Rules, and Estate Planning Updates
The bill includes key provisions for older adults, retirees, and individuals focused on estate planning. These changes take effect mostly in 2025–2026 and may influence how you approach taxes and legacy planning.
1. Bonus Deduction for Taxpayers Age 65+
- $6,000 additional deduction for those 65+ starting in 2025
- $7,600 for individuals / $8,000 for unmarried or non-surviving spouses
- Phases out above $75,000 (individual) / $150,000 (joint)
- Fully phased out at $175,000 (individual) / $250,000 (joint)
2. Charitable Contributions
- $1,000 deduction for individuals, $2,000 for couples
- Available even without itemizing deductions
3. Estate and Gift Tax Exemption
- Increases in 2026 to $15 million (individuals) / $30 million (couples)
- Indexed for inflation
- Important for high-net-worth estate planning
Planning Considerations
- Review deduction strategies
- Update your estate plan
- Coordinate with financial advisors at Scarborough Capital Management, especially near income phaseouts
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