Newly enacted legislation, signed into law on July 4 this year, has broad implications for taxes and more. Officially called the One Big Beautiful Bill (OBBB) Act, and comprising over 800 pages, the laws and provisions are too numerous to name here. However, it is important to highlight some key components of the current law and point you to resources where you can learn more. Your financial advisor is apprised of how the changes impact your situation, and we endeavor to keep you informed.

One such resource, which is helpful and well-organized, comes from Fidelity Investments. You may wish to review it here:   https://www.fidelity.com/learning-center/personal-finance/one-big-beautiful-bill

Already, we are seeing how the updated law impacts tax projections for many clients. Several aforementioned items were enacted into law by the 2017 Tax Cuts and Jobs Act, which was set to expire at the end of 2025. The OBBB extends the provisions and increases them in many cases. Although there are limitations within the provisions below, these are some of the general updates provided in the law:

• Standard Deduction – Increases for taxpayers who do not itemize deductions
• Individual income tax rates – Retains lower tax rates for most individuals
• Child Tax Credit – Increases the credit to $2,200 and is indexed for inflation
• Enhanced Senior Deduction – Provides $6,000 deduction for qualifying seniors
• Charitable Deductions – Contributions of $1,000 from individuals and $2,000 from joint filers are deductible, even for those not itemizing deductions
• Tips and Overtime Pay – No tax is collected on tips and overtime pay
• State and Local Tax (SALT) – Increases the deduction cap to a maximum of $40K, which phases down for high income earners.
• Federal Estate Tax – Increases federal exemptions and other provisions to $15 million per individual and $30 million for married couples.

To gain a better insight into how the newly enacted tax law influences your finances, we can review a tax projection during your next advising meeting. Also importantly, MarsJewett is not a tax professional, so it is advisable to consult your tax preparer for tax advice. As always, if you have questions or concerns, please reach out to us anytime.

This material is intended for informational purposes only and does not constitute personalized investment, tax, or legal advice. Past performance is not indicative of future results. Market indices referenced are unmanaged and not available for direct investment. MarsJewett Financial Group works with Fidelity Investments as its primary custodial partner. While we may reference third-party websites or individuals for educational purposes, MarsJewett does not guarantee the accuracy or completeness of their content unless explicitly noted. Always consult your tax advisor or legal professional regarding your individual situation. Advisory services are offered through MarsJewett Financial Group, an SEC-registered investment adviser.