We had great intentions of bringing you guys “The Scoop” on the new tax laws aka OBBBA (One Big Beautiful Act) signed into law on July 4, 2025 – with multiple outside views on the new rules ….
In a true safe over sorry or measure twice cut once manner – Two sayings we like to use… We have a few important thoughts here now, and will proceed with the Newsletter, but there are still many unanswered items...
Here are the items we are comfortable with and are mentioning these now as they are in effect and have “Hooks” mostly in the form of phase outs!
The Age 65+ Social Security $6k Credit/Person – BUT with phase outs
This credit acts as an extra deduction much like your itemized or standard deductions, but has the following phase outs:
Single over MAGI $75k
Joint over MAGI $150k
Note – this is also Modified Adjusted Income (MAGI) which adds back certain interest and other items
SALT – State and Local Tax Deduction
The current $10k Deduction moves up to $40k but it phased out over $500k in income quickly back to $10k at the $600k level…
Graphic looks like this
A lot of great planning ideas that we will present shortly, but again some lack clarity yet….
Oh… One other item – PERMANENT has been thrown around and candidly caused confusion, this word in Tax context, only means there are no provision for expiration ! Hope that helps!
Newsletter Editor here we go!
Ahhh…that is all coming in the week(s) ahead …. Today is a Friday – Have a super weekend, Fun Day and Talk Next Week!
John A. Kvale CFA, CFP
AI Content Authenticity: AI created the splash image. All of the following text content has been completed by myself and has not been edited or created by AI. Occasionally we do use AI for images and will note when appropriate.
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
