07.08.25 -- The new tax law (H.R.1) makes permanent what was supposed to sunset and creates new planning considerations for 2025. The moves you make now will make a difference later.
Here's the breakdown by the different roles you play in life.
FOR WORKING PROFESSIONALS
Standard Deduction Increases Starting in 2025: $15,750 if you're single, $31,500 if you're married. That's more income you don't pay tax on—especially helpful if you don't itemize deductions.
SALT Cap Gets Better (Temporarily) The state and local tax deduction cap jumps from $10,000 to $40,000 through 2029. If you live in a high-tax state and earn good money, this could save you thousands. There's a catch though—the benefit phases out if you make over $500K. Real example: A married couple in New Jersey earning $200K who used to max out at the $10K SALT deduction could now deduct $40K—potentially saving $7,500+ in federal taxes.
HSAs Get More Accessible Bronze and catastrophic health plans now count as high-deductible plans for HSA purposes. If you've wanted an HSA but your plan didn't qualify before, check again.
High Earners Have New Limits If you're in the top tax bracket (37%), you'll lose some of the benefit from itemized deductions. The math on itemizing vs. standard deduction got more complicated.
FOR FAMILIES
Child Tax Credit Goes Up Now $2,200 per kid (was $2,000), and it'll adjust for inflation going forward. For a family with three kids, that's an extra $600 in credits this year.
New Senior Deduction If you're 65 or older, there's a new $6,000 deduction through 2028. It phases out starting at $75K income (single) or $150K (married), so timing matters if you're close to those thresholds.
Estate Planning The estate tax exemption goes to $15 million per person in 2026. For married couples, that's $30 million total. Even if you're nowhere near that number, this affects gift strategies and how you structure family wealth.
Charitable Giving Changes (Starting 2026) The rules flip here. If you don't itemize, you can now deduct up to $1,000 in charitable gifts ($2,000 if married)—that's new. If you do itemize, there's now a small threshold you have to exceed before charitable deductions count. Either way, this changes the math on giving strategies.
FOR BUSINESS OWNERS & ENTREPRENEURS
QSBS Gets Better If you own stock in a qualifying small business, the lifetime capital gains exclusion jumps from $10 million to $15 million—but only for stock you acquire after July 4, 2025. Plus, you now get partial benefits: 50% exclusion at three years, 75% at four years, 100% at five years.
Equipment Purchases Make More Sense Section 179 expensing goes to $2.5 million for 2025, and 100% bonus depreciation comes back for assets you buy after January 19, 2025. If you've been putting off equipment purchases, the timing just got important.
Pass-Through Deduction Stays The 20% deduction for S Corps, partnerships, and sole proprietors is now permanent. No more wondering if it'll disappear in a few years.
FOR EVERYONE
Predictability The biggest win might be predictability. A lot of the 2017 tax changes were supposed to expire in 2025. Now we have a longer runway to plan.
Green Energy Credits Ending Soon If you've been considering an EV purchase or home solar installation, several credits end this year or next. The EV credit ends September 30, 2025, and most home energy credits end December 31, 2025.
Planning Isn't Optional
Every piece of this bill connects to other parts of your financial life. How you time income, when you make charitable gifts, whether you update your estate documents—the math behind these decisions just changed. The rules changed. That's why comprehensive planning makes a difference.