The “One Big Beautiful Bill” Act: What’s In It, Why It Matters, and Whether You Should Lose Sleep Over It

Head of Wealth Planning, Victoria Bogner, goes over the “One Big Beautiful Bill” Act.

On July 4th, while most Americans were grilling hot dogs and trying not to burn off their eyebrows, Congress was cooking up something else entirely: the One Big Beautiful Bill Act - a name so modest it makes “The Greatest Show on Earth” sound reserved.

Here’s a digestible guide of what’s actually in this bill, what it means for your financial life, and what, if anything, you need to do about it.

The Highlights

1. No Taxes on Tips

If you’re a tipped worker (think servers, bartenders, hair stylists) this is your moment. You can now deduct up to $25,000 in tips from your taxable income (2025–2028). There are income limitations, so be aware of that.

2. Overtime Pay Deduction

Workers can deduct up to $12,500 of overtime pay annually. Double that if you're filing jointly and both working extra hours.

3. Extended Tax Cuts and Jobs Act Rates

Trump-era tax brackets—ranging from 10% to 37%—are now here to stay. At least until they’re changed by a different bill in the future.

4. Standard Deduction Goes Up

Under the OBBBA, the standard deduction increased across the board for the 2025 tax year:

• Single / Married Filing Separately:
  From ~$13,850 (2024) → $15,750
• Married Filing Jointly / Qualifying Widow(er):
  From ~$27,700 → $31,500
• Head of Household:
  From ~$20,800 → $31,500

If you're age 65+: Add $6,000 to your standard deduction (on top of the usual age-based bonus). This special bonus runs from 2025 through 2028, so enjoy it while it lasts.

5. Child Tax Credit Increases

The credit bumps to $2,200 per child. Because kids aren’t cheap.

6. SALT Deduction Cap Increased

Up to $40,000 in state and local tax deductions for those earning under $500K. Above that? Sorry, you’re still limited to the $10,000 cap.

7. Bonus Depreciation Is Back

Businesses can write off 100% of eligible capital investments immediately. Translation: If you run a business and you were waiting to buy that fancy new fleet of coffee machines or robotic inventory sorters, now your chance.

8. Estate Tax Exemption Doubled

With the estate tax exemption now officially increased to $15 million per person ($30 million for married couples), it’s a smart time to revisit your estate plan. Not only is this higher than the previous $13.99 million limit, but thanks to the new law, we can finally stop worrying about it dropping back down to $7 million next year.

9. Medicaid & SNAP Work Requirements

For those receiving Medicaid or SNAP benefits, they may need to meet new work requirements.

10. Clean Energy Incentives? Gone.

If you’re considering solar panels or an electric vehicle, the clock is officially ticking.

The Investment Tax Credit (ITC) for residential solar, previously allowing a 30% credit for qualified costs, is now on a faster phase-out schedule.

• Under OBBBA, to qualify, your system must be:
  • Fully installed and operational (not just purchased or contracted),
  • Placed in service by December 31, 2027, and
  • Construction started before June 30, 2026.

So, if your plan was to “get around to it someday,” someday needs to become a signed contract and an installation date ASAP.

What Does This Mean for You?

You’ll likely pay a bit less in taxes short term. But the Congressional Budget Office is projecting that this adds $3.4 trillion to the national debt. Massive debt usually means pressure on interest rates. The Fed may need to rethink their rate strategy, which could lead to some market volatility. Or as we call it: just a normal Tuesday.

But let’s not overreact. This isn’t “sell everything and put it in a coffee can in the backyard” territory. But here are some things you might want to consider:

With clean energy tax credits getting slashed, it may be time to take a fresh look at your renewable energy ETFs. Meanwhile, defense and manufacturing sectors are likely to benefit from the bill’s provisions. On the tax front, some deductions are permanent while others are strictly limited-time offers. It’s a good moment to have your advisor revisit your Roth conversion strategy and run a new cash flow analysis with the updated numbers.

Final Thoughts

Regardless of what you think of the One Big Beautiful Bill, it’s the law now, and it’s not going away anytime soon.

Don’t let the headlines (or the name) distract you. Focus on what you can control and don’t lose sleep over what you can’t. If you want help cutting through the noise, we’re here for you with our calculators in hand.

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