SPECIAL EDITION: Trump’s ‘One Big Beautiful Bill’: What It Really Means for Your Wallet in 2025

Trump’s "One Big, Beautiful Bill Act" just passed—and it brings major tax changes.

In this episode of Coffee with Waymark, Brendan offers a clear, non-political breakdown of the proposed changes in Trump’s One Big Beautiful Bill. Organized by income level, he highlights what’s staying, what’s changing, and how long these updates may last.

From updated tax rates and significantly enhanced deductions for those 65+ to the introduction of new “Trump Accounts,” Brendan walks through the real-world impact of this legislation—what applies to you and what might not.

Watch the full breakdown now as these tax shifts will affect nearly every American.

Hey, and welcome to another edition of Coffee With Waymark. This edition is a special one, thanks to the July 4th passing of Trump’s "Big, Beautiful Bill."

Big disclaimer right out of the gate: I'm not going to talk about anything controversial here. I’ll share what the intent of the bill is and what some of its opponents are saying. But I’m not getting into Medicaid, SNAP, immigration, clean energy credits, or education. Those are political hot buttons, and frankly, I don’t want to wade into them because I know people will have strong responses.

So let’s leave it there and jump in.

Tax Brackets

The biggest part of the bill—and probably the least discussed—is the tax brackets. This is arguably the main reason the bill came into play. Before this bill was passed, tax brackets were scheduled to return to their pre-2017 levels. That would have put the top tax bracket back at 39.6%, and the income thresholds for entering higher brackets were more compressed, meaning you'd hit higher tax rates sooner. With the bill, we’ll maintain the current structure, keeping the top bracket at 37%.

What this means in real terms:

• $25,000 income (married filing jointly): $7 tax savings, or about 0%

• $50,000: ~$757 tax savings, or about 1.5%

• $100,000: ~2% tax savings

• $250,000: ~2.9% tax savings

• $500,000: ~3.7% tax savings

• $1 million: ~3% tax savings

  
  

Critics argue that while the percentage savings are relatively even, the absolute dollar amount saved by higher earners is significantly more, which they claim benefits the wealthy disproportionately. I'm not going to dwell on that—just pointing out what opponents are saying.

Key Provisions

I’ve organized the rest by income thresholds. If you exceed a threshold, you likely won’t benefit from provisions below it.

No Income Phase-Outs:

• Standard Deduction: The higher standard deduction introduced in 2017 will remain and be indexed for inflation after 2025. This reduces taxable income—a good thing.

• Savings Account for Children: A smaller provision getting a lot of attention. For children born between 2025 and 2028, the government will deposit $1,000 into a savings account. Parents can contribute up to $5,000 per year until the child turns 18. Details on how this account will function long-term are still to come.

• Estate Tax (Federal): Originally set to return to pre-2017 levels, where estates above $7 million per person were taxed heavily. The bill maintains the elevated exemption—nearly $14 million per person or $28 million per couple—from federal estate taxes. Keep in mind this is federal only. States like Massachusetts still have much lower limits (e.g., $2 million).

• Charitable Deduction for Non-Itemizers: Previously, if you took the standard deduction, your charitable contributions didn’t get you any tax break. Now, individuals can deduct $1,000, and married couples filing jointly can deduct an additional $2,000 in charitable donations on top of the standard deduction. A small but meaningful change.

Phase-Out Begins at $500,000 Income

• SALT Deduction (State and Local Taxes): The previous cap was $10,000. This bill raises it to $40,000. Helpful for people in high-tax states like CA, NY, NJ, and MA. Critics point out this largely benefits higher earners and only lasts from 2025–2029 unless extended by Congress.

Phase-Out Begins at $400,000 Income

• Child Tax Credit: Increased for those earning less than $400,000. Credits are better than deductions because they reduce your tax bill dollar for dollar. This increase is temporary—2025 through 2028.

Phase-Out Begins at $300,000 Income

• Taxes on Tips and Overtime: Up to $25,000 in tipped or overtime income is considered above-the-line deductible income (effectively tax-free) for joint filers earning under $300,000. This is a meaningful change for those in service or hourly wage industries.

Phase-Out Begins at $200,000 Income

• Auto Loan Interest Deduction: If you earn less than $200,000 and buy a car whose final assembly is in the U.S., you can deduct up to $10,000 of auto loan interest. For example, a $50,000 car at 5% interest = $2,500 deductible. This is in effect through 2028.

Phase-Out Begins at $150,000 Income

• Senior Tax Relief: This one’s big for older adults with incomes under $150,000. Originally, Trump campaigned on eliminating Social Security taxes for seniors, but that didn’t pass. This is a substitute. Seniors receive the standard deduction, plus an additional $6,000 per person and an extra $3,200 in enhanced deductions.

• That’s over $40,000 in deductions available to qualifying seniors. Note: many seniors with pensions or required minimum distributions may exceed $150,000 and not qualify.

That’s a lot to cover, and I tried to keep this as concise and non-political as possible. Hopefully you found it helpful.

As always, be well and do good.

Brendan is the Managing Director for Waymark Wealth Management. He has extensive experience in comprehensive wealth management. His focus includes retirement planning, behavioral finance, investment portfolio construction, education funding, insurance & risk management, taxes, charitable giving, and estate planning. Brendan has an ability to take clients' complex visions and distill them down to simple action plans, helping them move from where they are today to where they want to be tomorrow.

Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC.

The LPL Financial Registered Representatives associated with this site may only discuss and/or transact securities business with residents in specific states which are listed on our website at www.waymarkwealth.com

The opinions voiced in this video are for general information only and are not intended to provide specific advice or recommendations for any individual.