Why the “One Big, Beautiful Bill” Has Made Tax Planning More Complicated—Not Less
Big changes. Bigger questions.
The recently passed One Big, Beautiful Bill (OBBB) was meant to bring tax clarity—but for many individuals and families, it’s done the opposite. While the bill makes several 2017 tax cuts “permanent” and introduces new incentives, it also creates confusion with phaseouts, timing traps, and a new layer of complexity.
At Sevey Wealth, we believe real tax optimization doesn’t happen once a year—it’s a multi-year, personalized process. The OBBB is a clear example of why a comprehensive tax strategy is more important than ever.
Top 5 Confusing Provisions of the OBBB
1. SALT Deduction Phaseout
The cap on State and Local Tax (SALT) deductions increases to $40,000 for many—but if your income is over $500,000 (MFJ), that deduction shrinks and eventually disappears at $600,000. The result? A hidden tax bracket as high as 45% that can catch high earners off guard.
2. Senior Deduction Phaseout
Beginning in 2025, people age 65+ can take an extra $6,000 per person—but only if income stays under $250,000. A Roth conversion or unexpected income bump could cause you to lose that benefit, creating a surprise tax bill.
3. “Permanent” Might Not Be
Tax brackets and the estate tax exemption are now “permanent”—but Congress can always rewrite the rules. We’ve seen this before. A long-term plan needs to stay flexible and ready for change.
4. Delayed Start Dates & Early Expirations
Some deductions and credits start in 2026. Others expire in 2028. That means the window for action is small—and waiting could mean missing out completely.
5. Roth Conversions Got More Complicated
Conversions remain a powerful strategy, but now they can push you into income phaseouts that impact SALT, senior deductions, or even Social Security taxation. A good idea in one year could backfire in another without multi-year planning.
Tax Planning Is No Longer a One-Year Decision
Many clients are surprised to learn that saving money on taxes this year can lead to higher taxes later. It’s not just about reducing today’s bill—it’s about coordinating your entire financial life:
How will this affect your Medicare premiums?
Will it change your eligibility for deductions?
How does it impact your estate plan?
Could future laws undo today’s assumptions?
At Sevey Wealth, we take a holistic approach—incorporating tax, investment, and estate strategies into one cohesive plan. Our job is to make sure each move you make today supports your long-term goals tomorrow.
Get a Clearer Tax Picture Today
The OBBB gives us opportunities—but only if we plan for them properly. If you're unsure how these changes affect your financial future, we’re here to help.
Schedule your complimentary planning session with Sevey Wealth Advisors today.
Let’s turn tax complexity into clarity—and take control of your financial future.
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📞 Or call us at 512.647.8886
