Boldin’s Recent OBBBA Tax Updates: What’s Changed, How It Impacts You, and New Opportunities for Optimizing Your Plan 

At Boldin, we’re always looking for ways to improve your financial planning experience. As part of our ongoing commitment to keep you informed, we’ve updated the Boldin Planner, effective July 24, 2025, to reflect a portion of the recent tax law changes under the One Big Beautiful Bill Act (OBBBA). 

These OBBBA tax updates may have an impact on important aspects of your tax planning, including deductions, tax brackets, and more. Below, we:

• Explain the changes
• Describe how they may impact your taxes
• Point you to how to evaluate the changes in the Boldin Retirement Planner
• Describe some of the planning opportunities enabled by these tax updates

What’s New in the Planner from the OBBBA Tax Updates?

In this section, we’ll walk you through each of the key tax updates implemented that could have an impact on your overall financial plan. 

Higher Standard Deduction Beginning in 2025 

The standard deduction has increased starting in 2025. New amounts are:

• Single: $15,750 (up from $15,000)
  
• Married Filing Jointly: $31,500 (up from $30,000)

These adjustments will automatically be applied based on your filing status and will be adjusted for inflation going forward. This increase is in addition to any other deductions, such as the additional deduction for age 65+ or blind, and the new temporary senior deduction (discussed in further detail below). 

To see the potential impact of the increased standard deduction in your Boldin plan, go to Insights > Taxes > Federal Tax Deductions. 

Additional Senior Deduction

A new deduction has been introduced for seniors aged 65 or older, providing up to $6,000 for single filers and $12,000 for joint filers (when both spouses are age 65+). Available through 2028, this deduction begins to phase out for those with Modified Adjusted Gross Income (MAGI) above $75,000 (single) or $150,000 (joint), and phases out entirely at $175,000 (single) or $250,000 (joint).

For example, as a joint filer with a MAGI between $150,000 and $250,000, the deduction is gradually reduced. At a MAGI of $175,000, it would be lowered to $4,500 per spouse or $9,000 total, if both spouses are age 65 or older.

The senior deduction will automatically be applied in your plan if you are 65 or older, and will be available whether you use the standard deduction or itemize your deductions. 

To see the potential impact of the additional senior deduction in your Boldin plan, go to Insights > Taxes > Federal Tax Deductions. 

Note: When combining the regular standard deduction, the current age 65+ or blind deduction, and the new temporary age 65+ deduction, households with members age 65 or older can receive up to $23,750 in deductions for single filers, $39,100 for joint filers with one spouse 65+, and $46,700 for joint filers where both spouses are 65+.  

Increase to the SALT Limits for Itemized Deductions

SALT stands for State and Local Taxes, which include property taxes, state income taxes, and local taxes that you may pay to state and local governments. The IRS allows taxpayers to deduct these taxes from their federal taxable income if they itemize their deductions.

The SALT deduction cap has increased to $40,000 (Single or MFJ, but $20,000 if Married Filing Separately) for tax years 2025 through 2029. After 2029, the cap will revert to $10,000 in 2030. A 1% inflation will be applied each year as well to both the limit and phase-out thresholds. 

For individuals with a Modified Adjusted Gross Income (MAGI) over $500,000 in 2025, this deduction will phase out. The amount of the reduction in the increased SALT limit is 30% of the amount by which your MAGI exceeds $500,000. However, the final SALT deduction limit won’t fall below $10,000. 

For example, if your MAGI exceeds $600,000, you’ll no longer qualify for the temporary increase, and your SALT deduction limit will revert to $10,000. If your MAGI is between $500,000 and $600,000, your SALT deduction limit will gradually decrease. For instance, with a MAGI of $575,000, your SALT deduction limit would be reduced to $17,500.

To see the potential impact of the SALT deduction increase in your plan, go to Insights > Taxes > Federal Tax Deductions. 

Removal of the TCJA (Change to 2017 Tax Rates) Toggle

The ability to toggle between the current tax rates and the 2017 tax rates (pre-TCJA) has been removed, as the current tax rates (10%, 12%, 22%, 24%, 32%, 35%, and 37%)  are now permanent under the OBBBA.

The Boldin Planner will now automatically apply the current tax rates for all calculations, with no action needed to adjust the setting.

Planning Opportunities Enabled by Recent OBBBA Tax Changes

The OBBBA tax changes may provide new opportunities to optimize your tax strategy, potentially reducing your taxable income and improving your long-term financial outlook. 

Planning Opportunities with the New Temporary Senior Deduction

If you qualify for the new senior deduction under OBBBA, several tax planning opportunities may help you maximize this benefit:

• Timing of Income Recognition: Consider postponing certain types of income (such as IRA distributions or Roth conversions) to a later tax year if you’re close to the phaseout threshold. Managing your taxable income can help you stay under the phaseout thresholds and claim the full deduction.
  
• Roth Conversion Planning: If your AGI is low enough to claim the full senior deduction, consider strategic Roth IRA conversions at a lower overall tax cost, as the deduction can offset some of the conversion income.
  
• Asset Liquidation Strategy: If you’re considering selling assets (e.g., real estate or securities), time these events outside of the years when claiming the deduction is most advantageous, to avoid pushing your AGI into the phaseout range.

Planning Opportunities with the New SALT Deduction Cap 

The temporary increase in the State and Local Tax (SALT) cap to $40,000 opens several planning windows, especially for taxpayers in high-tax states:

• Deduction Bunching: Consider prepaying state and local property taxes or estimated state taxes for multiple years in 2025 to maximize the elevated cap, especially if future tax rates or liabilities may decline.
  
• Itemizing vs. Standard Deduction: With the increased SALT cap, it may be beneficial to itemize deductions in 2025 even if you usually take the standard deduction. This is especially true if your total itemizable deductions, including SALT and mortgage interest, exceed the new, higher standard deduction.
  
• Coordination with Other Deductions: Consider combining large deductible payments (e.g., medical expenses, charitable giving, mortgage points) alongside the increased SALT cap for maximum tax efficiency. Then, you may revert to the standard deduction in subsequent years.

Additional OBBBA Tax Updates Planning Considerations

• Optimize Year-by-Year: If you benefit from both the senior deduction and the higher SALT cap, carefully coordinate your income, deduction timing, and large payments to avoid pushing your AGI into deduction phaseouts.

• Review Multi-Year Projections: Review your multi-year projections in the Boldin Planner, taking into account predictable bracket thresholds and deduction rules. This will help you make better long-term tax decisions.
  
• Plan with Confidence: With the tax brackets now in place, you can move away from “sunset” anxiety (the possibility of taxes increasing in 2026) and focus on strategies to optimize your tax position over time.

To optimize your financial plan, it’s important to review your tax estimates, especially with these recent tax updates. You can do so under Insights > Taxes in your Boldin Planner. 

For more information on the OBBBA changes, visit the Tax Foundation FAQ or consult with a tax professional or Boldin Advisors.