Understanding the One Big Beautiful Bill Act: Implications for Your Financial Plan
In 1976, Congress passed the Tax Reform Act—one of the most sweeping overhauls of the tax code in U.S. history. Nearly 50 years later, we’re seeing another major shift with the passage of the One Big Beautiful Bill Act. And just like in the past, the headlines are loud, the opinions are louder, and the real implications for your financial life can feel buried beneath the noise.
At True Vision Financial Advisors, our priority is to help you interpret these developments through the lens of your long-term financial goals. Below is a summary of the key updates and how they may influence your financial strategy.
Key Tax Changes for All Taxpayers
For all taxpayers, several foundational changes are now in effect. Federal income tax rates have been permanently extended, with inflation indexing scheduled to begin in 2026. Here is a summary of changes that may affect you (subject to income):
| Provision | Before | After |
| Standard Deduction (Individual) | $15,000 | $15,750 |
| Standard Deduction (Joint) | $30,000 | $31,500 |
| State and Local Tax (SALT) Deduction Cap | $10,000 | $40,000 (2025), increasing through 2029 |
| Child Tax Credit (per child) | $2,000 | $2,200 (indexed for inflation) |
| Charitable Deduction for Non-Itemizers (Individual) | None | $1,000 (starting 2026) |
| Charitable Deduction for Non-Itemizers (Joint) | None | $2,000 (starting 2026) |
Key Tax Changes for Retirees
Retirees and individuals age 65 and older will benefit from an enhanced standard deduction of $6,000 available through 2028. This provision may reduce taxable income and affect the taxation of Social Security benefits. We will evaluate how this interacts with your broader income strategy during your next review.
| Provision | Before | After |
| Enhanced Standard Deduction for Seniors (65+) | $2,000 additional deduction | $6,000 additional deduction through 2028 |
| Qualified Business Income (QBI) Deduction | 20%, temporarily through 2025 | Made permanent |
| Newborn Savings Accounts (“Trump Accounts”) | None | Federally seeded accounts for eligible newborns starting 2026 |
| 529 Plan Usage Expansion | Up to $10,000 for K–12 (limited); career programs not covered | Expanded to $20,000 for K–12 and career credentialing |
Economic Outlook and Ongoing Monitoring
The One Big Beautiful Bill Act is expected to boost long-term GDP by approximately 1.2%, driven by incentives for domestic investment, tax relief, and infrastructure development. However, it is also projected to add nearly $3.8 trillion to the federal deficit over the next decade, raising potential concerns around fiscal policy, interest rates, and inflation.
At True Vision Financial Advisors, we are closely monitoring these developments and their implications for your financial plan. As the economic environment evolves, we will continue to assess how these changes may influence investment strategies, tax planning, and retirement income. Our goal remains to keep your financial strategy resilient, adaptive, and aligned with your long-term objectives.
What’s New at True Vision
We’re thrilled to share some exciting updates from the True Vision family!
Samantha Pilacinski (Darin’s daughter) has officially joined our team! With over a decade of experience in the financial services industry, including time on the trading desk at Charles Schwab, she’s now working toward becoming a licensed Financial Advisor. You’ll be seeing her name as she partners with our team to support our clients.
We look forward to what’s ahead as we continue growing and evolving alongside our clients.
