This year, the One Big Beautiful Bill Act (OBBBA) brought sweeping tax changes—over 1,000 pages of them. We know that’s a lot, so we zeroed in on the provisions most relevant to tax-intelligent financial planning.
The result? A handful of updates that could make a real difference in how you approach your income, deductions, and long-term planning. We’ll also coordinate with your CPA to identify and strategize around the changes that directly impact you.
Here are the top 5 OBBBA changes you should have on your radar, for both business owners and individuals.
1. New Senior Deduction for Taxpayers 65+
Starting in the 2025 tax year, the OBBBA introduces a new deduction for seniors: $6,000 for single filers and $12,000 for joint filers age 65 or older1. This is in addition to the standard deduction, with phaseouts for higher incomes.
This extra deduction could significantly reduce taxable income for qualifying seniors. If you’re close to the phaseout range, we can help you with timing withdrawals, pension income, or Roth conversions to preserve eligibility and get the most from this benefit.
2. Above-the-Line Charitable Deduction Returns
Even if you take the standard deduction, you can now deduct up to $1,000 (single) or $2,000 (joint) for charitable contributions, which means you no longer have to itemize to get a tax break for giving.
Think about timing your contributions during high-income years or use a donor-advised fund (DAF) to maximize the benefits of your charitable donations for both your causes and your taxes.
3. Estate Tax Exemption Increased to $15 Million
The federal estate tax exemption is now $15 million per person (adjusted for inflation), meaning fewer estates will be subject to federal estate taxes. This provides more flexibility for legacy planning and may help you simplify certain estate structures.
Even if your estate falls under the exemption, don’t skip planning. A well-structured estate plan can help minimize income taxes for heirs and ensure your wishes are carried out exactly as you intend.
4. The 20% QBI Deduction Is Now Permanent
If you own a pass-through business, like a sole proprietorship, partnership, or S corporation, you can continue to deduct up to 20% of your qualified business income (QBI).
This deduction was set to expire in 2025 under the original Tax Cuts and Jobs Act (TCJA), but OBBBA locks it in for the long haul. The deduction begins to phase out at certain income levels, so tax-smart income management is essential. Deferring income, accelerating expenses, or adjusting your business structure could help you stay eligible year after year.
5. SALT Deduction Cap Raised to $40,000
The federal SALT deduction limit has increased from $10,000 to $40,000 for households earning under $500,000.
Because Louisiana’s income and property taxes are relatively low, many residents won’t reach the cap, but there is still an opportunity. Louisiana offers a Pass-Through Entity Tax (PTET) election, which allows S corporations and partnerships to pay state taxes at the business level, lowering federal taxable income. For many business owners, PTET could provide greater savings than the new SALT cap alone.
The OBBBA didn’t just tweak a few tax rules—it made permanent and expanded some of the most impactful provisions from the TCJA. For many, these changes open up new opportunities to save on taxes and refine long-term strategies.
The earlier you plan, the more you can take advantage of these updates. If you’d like to review how these changes apply to your situation, let’s schedule a time to talk before year-end.
- IRS.gov