For many Americans, the Big Beautiful Bill throws a wrench in financial planning. Determining how to adapt can be extremely daunting. The bill itself is more than 900 pages, and if you’re not a financial professional, it can seem next to impossible to know what to do next.
A great way to plan for the future is to discuss your finances one-on-one with our financial advisors. However, it may be helpful to understand some of the primary ways the Big Beautiful Bill—formally called the One Big Beautiful Bill Act (OBBA)—may directly impact your finances.
1. Your Taxes May Be Lower
When the Tax Cuts and Jobs Act (TCJA) was passed in 2017, it increased the standard deduction and adjusted tax brackets so most people would ultimately owe less in federal income tax. Originally, the TCJA tax cuts were set to expire at the end of 2025, but the Big Beautiful Bill has made them permanent (with provisions for inflation adjustments).
2. You May Benefit From an Expanded Child Tax Credit
The Big Beautiful Bill has also increased the child tax credit to $2,200 in 2026. In 2025, it is $1,750.
3. Saving for Your Child’s Future Might Be Easier
The new law expands qualified expenses for 529 plans. Instead of covering only tuition, this money can also be used for books, tutoring, and related expenses.
The Big Beautiful Bill has created “newborn savings accounts.” If a parent establishes an account for a new baby, the federal government contributes $1,000.
4. If You’re a Retiree, You’ll Get an Additional Tax Credit
The Big Beautiful Bill introduces a new “senior deduction.” If you are 65 or older and have an adjusted gross income (AGI) under $75,000 (or less than $150,000 for a married couple), you may qualify for an additional $6,000 tax deduction.
5. Qualifying for Certain Benefits Programs Could Be More Difficult
Although the Big Beautiful Bill has expanded several financial benefits for Americans, it has also drastically reduced funding for the following programs:
- Medicare
- Medicaid
- Supplemental Nutrition Assistance Program (SNAP)
The law has also tightened eligibility rules for the Affordable Care Act (ACA).
6. You Might Be Able to Deduct Tips and Overtime Pay
If you qualify based on income, you may be able to deduct up to $25,000 in tips and $12,500 in overtime wages from your taxes. These deductions apply only to hourly workers.
7. You May Deduct More State and Local Taxes
In some areas, state and local taxes greatly increase people’s total tax bill. If your AGI is under $500,000, you may deduct up to $40,000 in state and local taxes. Previously, the deduction was capped at $10,000.
8. You Might Need to Adjust Your Investment Portfolio
The Big Beautiful Bill has made major cuts to clean energy investor incentives. If a substantial part of your investment portfolio has to do with green energy, you may want to make changes.
9. You May No Longer Need a Complex Estate Plan
The law increased the estate tax exemption to $15 million. If your estate is less than this, you may not need a complex estate tax strategy.
10. You Might Save if You’re a Small Business Owner
The bill also expands the qualified business income (QBI) deduction for small business owners. Most importantly, it makes the temporary 20% deduction permanent.
Learn What the Big Beautiful Bill Means for You
Dealing with any kind of financial upheaval can be difficult. However, the good news is that you don’t have to reshape your financial plan on your own when you contact our team. At FSA Wealth Partners, we focus on personalized, detailed financial planning to help clients move toward a brighter tomorrow.
To schedule a meeting, call (301) 949-7300 or email jim@FSAwealthpartners.com.
About Jim
James Joseph, CFP®, is the President and Partner of FSA Wealth Partners (FSA), a financial services firm in Rockville, MD, with over 40 years of experience helping individuals, families, and business owners navigate the complexities of wealth management. Since joining FSA in 2004, Jim has been passionate about guiding clients with personalized financial and investment advice, simplifying complex financial topics, and providing tailored solutions—especially for those approaching or enjoying retirement.
Jim takes pride in the FSA Safety Net®, a unique strategy designed to help clients avoid major losses during market downturns. His belief that “you win by not losing” underscores FSA’s proactive approach to preserving wealth while still seeking growth. By focusing on risk management and using the FSA Safety Net®, Jim works to prevent small losses from becoming significant setbacks, keeping his clients’ goals intact. Jim emphasizes the importance of both active management and comprehensive financial planning.
Jim began his financial career in 1997, gaining experience at Charles Schwab and Morgan Stanley, where he crafted retirement strategies and managed portfolios. His extensive background, combined with his genuine dedication to helping clients reach their financial goals, has made him a trusted advisor. He particularly enjoys seeing clients succeed when they embrace his advice and transition smoothly into retirement, believing that starting early and leveraging the power of compounding can unlock future financial flexibility.
Jim holds a bachelor’s degree in Finance from West Virginia University, the CERTIFIED FINANCIAL PLANNER® designation, and over the years has shared his financial knowledge in publications such as The Wall Street Journal and Reader’s Digest. When not at work, Jim enjoys spending time with his three daughters, playing ice hockey, and cheering on his beloved Pittsburgh Penguins and Steelers. He’s also into aviation, working toward his private pilot’s license. To learn more about Jim, connect with him on LinkedIn.
FSA’s current written Disclosure Brochure and Privacy Notice discussing our current advisory services and fees is available at www.fsawealthpartners.com/disclosures or by calling 301-949-7300.
