The 3 Biggest Tax Questions We’re Hearing Right Now

Every year brings its share of tax changes, but 2026 is different. The One Big Beautiful Bill Act, signed into law on July 4, 2025, made sweeping updates to the federal tax code — some permanent, some temporary, and nearly all of them generating questions from the families and individuals we work with. Rather than try to cover everything at once, we wanted to focus on the three topics that have come up most often in recent conversations and break them down in plain language.

“How Does the New SALT Deduction Cap Affect Me?”

If you live in a state with meaningful income or property taxes, you’ve probably felt the sting of the $10,000 cap on the state and local tax (SALT) deduction that’s been in place since 2018. Good news: the new law raises that cap to $40,000, effective for the 2025 tax year. For 2026, it ticks up to $40,400 and will continue increasing by one percent annually through 2029.

For a household earning $400,000 and paying $30,000 in combined state income and property taxes, this is a significant change. Under the old rules, only $10,000 of that was deductible. Now, the full $30,000 qualifies. That’s a real reduction in taxable income.

However, the expanded cap comes with an income-based phaseout. If your modified adjusted gross income exceeds $500,000 (or $250,000 for married filing separately), the cap is reduced by 30 cents for every dollar above that threshold. By the time income reaches roughly $600,000, the deduction phases back down to $10,000. So a couple earning $550,000 would see their maximum SALT deduction reduced to about $25,000 — still much better than $10,000, but not the full benefit.

A few things worth noting. First, if you’ve been taking the standard deduction because the old SALT cap made itemizing less worthwhile, it’s time to run the numbers again. Second, business owners using pass-through entity tax elections can still deduct state taxes at the entity level — the new law didn’t restrict that workaround. And third, this expansion is temporary. The cap reverts to $10,000 in 2030, which means there’s a planning window worth being intentional about.

“With the Estate Tax Exemption at $15 Million, Do I Still Need an Estate Plan?”

For years, families were on edge about the federal estate tax exemption. Under the 2017 Tax Cuts and Jobs Act, the exemption had been roughly doubled to about $14 million per person, but it was set to drop back to around $7 million at the end of 2025. The new law resolved that uncertainty by permanently raising the exemption to $15 million per individual — $30 million for married couples — effective January 1, 2026. Beginning in 2027, it will be indexed for inflation, and unlike the prior law, there’s no sunset provision.

So does that mean estate planning is no longer necessary? Not at all. The federal exemption is only one piece of the puzzle. Eighteen states plus the District of Columbia impose their own estate or inheritance taxes, often with much lower thresholds — in some cases as low as $1 million. A couple with $20 million in assets might owe nothing federally but could face a significant state tax bill depending on where they live.

Beyond taxes, a good estate plan addresses guardianship for minor children, powers of attorney, the orderly transfer of business interests, and probate avoidance. These things matter regardless of exemption levels.

The higher exemption also creates interesting planning opportunities. If your estate is comfortably below $15 million, the focus may shift from estate tax reduction toward income tax efficiency. Holding appreciated assets until death to take advantage of the step-up in basis, for example, could eliminate capital gains taxes on decades of growth. On the other hand, families with larger estates should continue using trusts and other transfer strategies, because the 40 percent federal estate tax rate on amounts above the exemption hasn’t changed.

“What Are All These New Deductions I Keep Hearing About?”

The new law introduced several targeted deductions that are genuinely new to the tax code. Here are the ones generating the most conversation.

Tips. Workers who receive tips can now deduct up to $25,000 in tip income from their taxable earnings. This applies to anyone in a tipped occupation — servers, hairstylists, rideshare drivers, and more — and it’s available whether you itemize or take the standard deduction. The deduction phases out at higher income levels and is temporary, running through the 2028 tax year.

Overtime. Overtime wages now qualify for a similar above-the-line deduction. If you earn time-and-a-half or double-time under the Fair Labor Standards Act, a portion of that income may be deductible. This is aimed at hourly and non-exempt workers, and it requires that your employer accurately report overtime pay on your W-2.

Auto loan interest. Perhaps the most surprising new break: interest paid on auto loans is now deductible up to $10,000 per year. This applies to personal vehicles, not just business ones. The deduction phases out starting at $100,000 of adjusted gross income for single filers ($200,000 for joint filers) and is fully eliminated at $150,000 ($250,000 for joint filers). Your lender is required to provide a statement of interest paid by January 31.

Senior deduction. Taxpayers 65 and older can claim a new deduction of up to $6,000 per qualifying individual, or $12,000 for married couples filing jointly where both spouses qualify. This sits on top of the existing standard deduction and the additional standard deduction for seniors. It phases out at six percent of modified adjusted gross income above $75,000 for single filers ($150,000 for joint filers) and is available for tax years 2025 through 2028.

Higher standard deduction. Finally, the standard deduction itself increased to $32,200 for married couples filing jointly, $16,100 for single filers, and $24,150 for heads of household for the 2026 tax year. These higher amounts are now permanent.

Putting It All Together

The common thread across all three of these topics is that the tax landscape has shifted in ways that create real opportunities — but also real complexity. Some provisions are permanent, others expire in a few years, and many come with income-based phaseouts that can change the math quickly depending on your situation.

Our advice? Don’t assume last year’s strategy still works. Whether it’s revisiting whether to itemize, rethinking your estate plan, or making sure you’re capturing every new deduction available to you, a fresh look at your tax picture is well worth the effort. As always, we’re here to help you think through it.

This article is provided for educational purposes only and does not constitute tax, legal, or investment advice. Tax laws are complex and individual circumstances vary. Please consult with a qualified tax professional or your financial advisor before making any decisions based on the information presented here.

On Adventure: Lessons from the Edge

Highlights from Recent Episodes of the On Adventure Podcast

By Josh Self

There are lessons that only come at a cost. They show up in the middle of something hard—when you’re out of breath on a ridgeline, sitting across from a family receiving the worst news of their life, or listening to thunder echo through a gorge from inside a tent. In our two most recent episodes of the On Adventure Podcast, I sat down with a neurosurgeon and a bishop whose stories remind us that the edge—wherever we find it—is where the real formation happens.

The Surgeon Who Learned to Stop

Dr. Hilal Kanaan is a neurosurgeon in Greenville, North Carolina and the son of Palestinian immigrants who rebuilt their lives in Kalamazoo, Michigan after his father was expelled from the West Bank. Hilal grew up with hardship in the background—never the whole picture, but never erased. His parents walked a fine line between honoring their roots and letting their boys be fully American.

That tension shaped his own approach to fatherhood. When his kids asked for a book about religion, Hilal didn’t hand them the Quran. He wrote them one—eight pages, hardcover, titled A Book About God. Its message: be kind, express gratitude, and know that people of different faiths are simply using different languages to say the same thing.

But the moment that stopped me cold was a story from early in his career. He’d taken on a tough surgery, made a decision that made it tougher, and suddenly found himself guiding a patient toward death. He told himself: stop. Ask for help. You’re making it worse. The surgeon he called came in without accusation, focused entirely on the patient, and saved a life. From that day on, Hilal said he wanted to become the doctor others would call when they were in trouble. He still walks the hospital thinking, “When I grow up, I want to be like him.”

That kind of humility—the willingness to stop and ask for help—is one of the hardest skills to develop, whether you’re in an operating room or on a mountain. And when I asked Hilal what he’d say to someone in a season of real hardship, his answer was simple: your feelings are valid. This is not the rest of your life. And you are not alone.

The Bishop Who Kept Walking

Bishop Mark Beckman, the fourth bishop of the Diocese of Knoxville, has been pairing faith and the outdoors since a young parish priest took his youth group hiking at David Crockett State Park. Early in his priesthood, on a Good Friday, he walked into a forest at Radnor Lake and found the floor carpeted in spring wildflowers. He thought: where have I been all my life? That was over thirty years ago, and he has never stopped walking.

His greatest physical journey was the Camino de Santiago—500 miles across Spain over six weeks. He learned that the first third is a physical challenge as your body adapts to the pain. The middle, the Meseta, is flat and monotonous, and the struggle becomes spiritual: enduring the ordinariness. His daily prayer was simple: God, help me to see today with my eyes. Help me to hear, to smell, to taste, to touch. When someone later asked if he’d just picked the best days for his photos, he answered: every day had its own beauty.

One of the most striking moments in our conversation was a story from the Grand Tetons. Bishop Beckman was sitting on a bench with an agonizing toothache, and his first instinct was self-pity. But as he kept breathing and looking, something shifted: if I’m going to be in pain, I’m grateful I can look at something this beautiful while it’s happening. That night, instead of fighting the pain, he simply noticed each sensation—breathing in and out—and found a peace deeper than the suffering. It’s a lesson I keep coming back to: suffering equals pain plus resistance. Lower the resistance, and something opens up.

What the Edge Teaches Us

These conversations left me with a few lessons I keep turning over. Humility is strength—knowing your limits and acting on that knowledge is one of the bravest things a person can do. The best lessons cost something—a family’s displacement, blisters on the Camino, a failed surgery. Monotony is its own wilderness, and the answer isn’t escape but presence. Community makes the summit possible—Bishop Beckman wouldn’t have reached that Colorado fourteener without friends beside him, and Hilal wouldn’t have saved his patient without the willingness to call someone. And if you’re in the middle of something hard: you are not alone, and this is not forever.

Stay safe and stay on adventure.

— Josh