In this episode of Retire with Style, hosts Alex Murguia and Wade Pfau are joined by CPA Brett Leyton to discuss the new tax provisions introduced in the One Big Beautiful Bill Act. The conversation covers essential topics such as federal income tax brackets, standard deductions, and various new below-the-line deductions that can benefit taxpayers, especially seniors. The episode delves into the complexities of tax planning, emphasizing the importance of strategic planning in light of the new legislation. Listeners will gain insights into how these changes can impact their financial planning and tax strategies moving forward.

Takeaways

• Tax planning is crucial for all income levels.


• The complexity of tax rules requires comprehensive planning.


• New tax brackets simplify some aspects of tax planning.


• Standard deductions have significantly increased for 2025.


• Seniors can benefit from additional below-the-line deductions.


• Qualified business income deductions are now permanent.


• New deductions for tips and overtime pay are introduced.


• Auto loan interest deductions have specific requirements.


• Charitable contributions can be deducted even if not itemizing.


• Understanding phase-outs is essential for effective tax planning.

Chapters

00:00 Introduction to Tax Planning and the One Big Beautiful Bill Act

02:54 Understanding Federal Income Tax Brackets

06:11 New Below-the-Line Deductions: Age 65 Plus

09:07 Qualified Business Income and Its Implications

11:51 Exploring Qualified Tips and Overtime Pay Deductions

14:59 Auto Loan Interest Deductions Explained

17:45 Charitable Contributions for Standard Deduction Filers

21:03 State and Local Tax Deductions: Changes and Challenges

Links

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The Retirement Planning Guidebook: 2nd Edition has just been updated for 2025! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/

This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/retirement-income-planning-llm/ to download McLean’s free eBook, “Retirement Income Planning”