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.

New Tax Season, New Tax Code: What Changed In 2026 – And Why It Matters

As we approach another tax filing season, it’s a good time to take stock of the most meaningful changes that affect U.S. taxpayers for the 2026 tax year (returns you’ll file in 2027). This year’s filing period reflects not just inflation adjustments but also significant provisions of the One, Big, Beautiful Bill Act (OBBBA), the major tax law signed in 2025 that locked in and updated several key tax provisions. (IRS)

Understanding these changes can help you plan earlier in the year — not just react at tax time.

Key 2026 Tax Changes at a Glance

Below are three major areas where taxpayers will see meaningful adjustments for the 2026 tax year:

1) Updated Federal Income Tax Brackets

The IRS annually adjusts tax brackets for inflation. For 2026, the seven familiar federal income tax brackets remain (10%, 12%, 22%, 24%, 32%, 35%, 37%), but the income thresholds have shifted upward, helping many taxpayers avoid “bracket creep.”

2026 Federal Income Tax Brackets (Taxable Income) (OneDigital)

Tax Rate

Single Filers

Married Filing Jointly

10%

Up to $12,400

Up to $24,800

12%

$12,401–$50,400

$24,801–$100,800

22%

$50,401–$105,700

$100,801–$211,400

24%

$105,701–$201,775

$211,401–$403,550

32%

$201,776–$256,225

$403,551–$512,450

35%

$256,226–$640,600

$512,451–$768,700

37%

Over $640,600

Over $768,700

These adjustments don’t lower rates, but they mean you can earn more before moving into a higher bracket. That matters for retirement planning, RMD timing, Social Security taxation, and portfolio withdrawals.

2) Standard Deduction and Senior Deduction Updates

Along with bracket changes, the standard deduction rises for most taxpayers. For 2026:

  • $16,100 for single filers
  • $32,200 for married couples filing jointly
  • $24,150 for heads of households (NerdWallet)

For many taxpayers, these deduction increases reduce taxable income before rates are even applied.

Additionally, OBBBA introduced a new senior deduction lasting through 2028: taxpayers age 65 or older may be eligible for a $6,000 deduction ($12,000 if both spouses qualify), regardless of whether they itemize or take the standard deduction. (AARP)

3) Expanded Credits and Other Key Changes

The 2026 tax year also reflects broader changes that can impact refunds or tax liabilities:

Child Tax Credit: Indexed for inflation and slightly increased under the OBBBA for qualifying children. (IRS)

Itemized Deduction Changes: The bill significantly expanded the cap on state and local tax (SALT) deductions for many filers, although limits and phaseouts still apply.

Charitable Deductions: Non-itemizers can now deduct cash donations up to $1,000 (single) or $2,000 (joint) – a change that broadens tax benefits to more filers.

Preparation and Filing Notes: The IRS has updated forms, encouraged direct deposit for refunds, and provided resources and checklists for this filing season. (IRS)

Why This Matters for Your Planning

These tax changes are not just numbers on a chart – they affect when and how you plan income, retirement distributions, Social Security strategies, Roth conversions, and charitable giving.

Some actionable reminders for 2026 and beyond:

  • Review whether standard vs itemized deductions benefit you (especially with SALT changes).
  • Consider the timing of income that could push you into higher brackets.
  • Coordinate retirement distributions with Social Security claiming to manage taxable income.
  • Use expanded credits and deductions to your advantage throughout the year, not just at filing time.

Taxes are a major lifetime expense – often bigger than market returns or fees. Planning with the current tax code in mind helps you make decisions that support the life you want to live.

 

Recent interest rate cuts: What they mean for savings, mortgages and cash management

The Federal Reserve recently cut its benchmark interest rate by 25 basis points, lowering the federal funds rate to 4.00% from 4.25%. This September 2025 Fed rate cut was widely expected, reflecting slower job growth, rising unemployment, and inflation that remains above target. The move signals a cautious shift: the Fed wants to support the labor market to keep people employed without reigniting inflation.

Why the Fed cut rates

Inflation in services has stayed sticky even as the broader economy shows signs of cooling. By trimming rates, the Fed is aiming to balance recession risks with its commitment to long-term price stability (known as the Fed’s Dual Mandate). Markets had largely priced in this cut, and future policy moves will likely hinge on labor market data and inflation trends.

Impact on savings accounts and money market rates

Here is where the rubber meets the road.  For savers, Fed cuts often translate into lower yields on savings accounts and money market funds. Online banks and credit unions may hold rates higher to remain competitive for a short period, but traditional deposit accounts usually adjust downward within months, if not immediately. Money market funds tend to react fastest, since they are directly tied to short-term rates.

This makes it essential for savers to compare account yields regularly. As rates decline, holding cash in a low-interest account could mean leaving money on the table.

Cash management programs

To maximize returns, many investors are turning to cash management programs.  One such example is Flourish Cash. These platforms sweep deposits into a network of FDIC-insured banks, offering:

  • Competitive, high-yield savings alternatives without fees or minimums
  • Extended FDIC protection beyond the standard $250,000 limit due to the number of banks involved in the sweep program
  • Daily rate adjustments that track prevailing market conditions
  • Liquidity and flexibility, allowing easy transfers in and out

Programs like Flourish Cash are designed to help cash balances earn more in both rising and falling rate environments. When rates go up, program yields can reset higher. When rates fall, these programs still provide better returns than most traditional checking or savings accounts, making them a valuable part of cash management in 2025.

Mortgage rates and refinance opportunities

A common misconception is that mortgage rates fall directly with Fed cuts. In reality, 30-year mortgage rates are tied more closely to long-term Treasury yields and investor demand for mortgage-backed securities (MBS). As a result, fixed mortgage rates may not drop much after a Fed cut.  However, borrowers with adjustable-rate mortgages (ARMs) or home equity lines of credit (HELOCs) often see more immediate relief, since these products reset based on short-term benchmarks.

For homeowners, mortgage refinance opportunities in 2025 depend on long-term yields. If Treasury and MBS yields decline alongside Fed cuts, refinancing can unlock real savings. Homeowners should weigh the potential monthly payment reduction against closing costs and the time they expect to stay in their home.

The bottom line

The recent Fed rate cut underscores the importance of staying proactive with your money. Savers should explore high-yield savings alternatives and consider cash management solutions to protect returns. Homeowners should track long-term mortgage rates to evaluate refinance opportunities, while those with ARMs or HELOCs may benefit more immediately from recent rate changes.

In today’s shifting interest rate environment, agility is key – aligning your cash, borrowing, and investment strategies ensures your money continues working for you, no matter how rates move.

Making your cash work: Smart management in a shifting monetary landscape

In today’s uncertain financial environment, idle cash doesn’t need to sit there. With high-yield, FDIC-insured options and rising awareness of monetary policy dynamics, you can make sure your liquidity still earns its keep. Here’s a look at standout solutions and what to watch.

Cash management options worth knowing
  • Flourish Cash

Flourish Cash is a brokerage-based cash sweep vehicle that partners with multiple FDIC-insured “program banks.” It offers competitive, variable interest rates—around 4.0% APY as of late April 2025—and spreads your deposits across many banks to expand FDIC coverage. You receive one statement and tax form no matter how many banks hold your funds, and transfers are generally seamless.

  • High-Yield Money-Market & Savings Accounts

High-yield savings accounts remain popular for their accessibility, though attractive rates are often promotional and can drop over time. Money-market funds typically offer higher yields—around 4–4.5%, with some pushing 5% in recent years. However, note that many of these are not FDIC-insured, and rates remain sensitive to Federal Reserve policy.

  • Cash‑Management Accounts (CMAs)

Offered by brokers and robo-advisors, CMAs blend checking, savings, and investing tools. They usually provide higher interest than traditional bank accounts, and your funds may or may not be insured via FDIC or SIPC. They facilitate payments, transfers, and even debit card access—helpful if you want seamless functionality without locking up funds.

How Monetary Policy shapes cash yields

Monetary policy – especially interest-rate movements by the Fed – has a direct, powerful effect on what cash earns.

  • When rates rise, as they did in recent years, money flows into high-yield instruments like money-market funds and sweep accounts. As of December 2024, money-market funds held roughly $7 trillion as inflows continued despite expectations rates would fall. Yields hovered around 4.39%, a stark contrast to average bank savings near 0.5%.
  • Looking ahead to 2025, some analysts expect rate cuts could shift investor behavior—less reward for idle cash may drive money into bonds or equities, especially as these markets show gains. Still, the high level of cash holdings suggests many investors may linger in money markets longer.
  • Institutional preference for stability remains evident—corporations are allocating more to high-yield money-market instruments to capitalize on elevated interest. As of late 2023, nonfinancial S&P 500 companies held 56% of their assets in cash and equivalents, seeing favorable returns.
Top 3 things to watch – and take action on
  1. Interest‑Rate Trends & Fed Signals – Fed rate changes directly impact cash‑account yields. Review your accounts regularly—are they outpacing or lagging current rates?
  2.  FDIC‑Insurance Structure & Coverage Limits – Tools like Flourish spread deposits across banks to maximize protection. If you hold a lot of cash, make sure you’re not exposed to single-bank FDIC caps. This is so important and something that I see many wealthy clients overlook regularly!
  3. Liquidity Needs vs. Yield Trade‑offs – Higher yield often comes with limitations. Define your cash needs—daily use vs. emergency reserve—and match them to the most fitting vehicle.

Cash doesn’t have to be passive. With the right tools and vigilance, your liquid assets can work harder without compromising security or flexibility.  Want to discuss this cornerstone topic further?  Let us know!

Three Adventures, Three Life Lessons – New Episodes of On Adventure Podcast

If you’ve missed the latest episodes of On Adventure Podcast, now is the perfect time to catch up. These three conversations share a common thread – ordinary people stepping into extraordinary moments – yet each one unfolds in a completely unique way. You can find all of these at the podcast website linked here or any podcast app.

Holly Budge: Skydiving Over Everest and Fighting for Wildlife

Holly Budge doesn’t just chase adrenaline; she turns her adventures into advocacy. In our conversation, she recounts becoming the first woman to skydive over Mount Everest and racing semi-wild horses across Mongolia. But the real heartbeat of Holly’s story is her work supporting female wildlife rangers protecting endangered species. Her insights on fear – how to normalize it and even use it as fuel – will leave you rethinking how you approach challenges in your own life.

Tanner Critz: Hiking Toward Identity on the Appalachian Trail

Tanner’s journey is raw and reflective. He opens up about hiking the Appalachian Trail in his early 20s, not just for the adventure but as a way to strip life down to the essentials and ask, Who am I really? Along the way, he wrestles with hidden health struggles, isolation, and the profound reset that comes from removing every societal label to rediscover yourself in the wilderness.

Brian Warren: From Mountain Guide to Fatherhood and New Horizons

Brian Warren’s life arc reads like an explorer’s logbook – thru-hiking the AT days after high school, moving to Jackson Hole sight unseen, and guiding climbs from the Tetons to the Himalaya. Yet his current challenge is far different: stepping out of the outdoor industry, embracing fatherhood, and navigating a new career path. Our discussion explores how the lessons of mountaineering – presence, risk, and reinvention – translate to the next chapter of life.

Each episode captures a different angle of adventure – from fear to identity to reinvention – and offers takeaways you won’t find in a highlight reel. Grab your headphones, go for a walk, and dive into stories that might just shift how you see your own journey.

5 Key Provisions in the New Tax Bill That High Net Worth Families Need to Know

Congress just passed one of the most sweeping tax overhauls we’ve seen in years. It’s already being described as a “once in a generation” shift – both in scope and impact. While most headlines focus on broad middle class relief, the truth is that high net worth families and top earners will feel some of the most significant ripple effects. Changes to deductions, new savings vehicles, and shifting rules around charitable giving will require a fresh look at how you structure income, investments, and legacy planning.

With so much noise around the bill, I want to cut through the clutter and highlight the five provisions that matter most. More importantly, I’ll share what they could mean for your planning over the next several years.

  1. Expanded SALT Deduction (State & Local Taxes)

One of the most talked about changes is the overhaul of the SALT deduction. The federal cap on state and local tax deductions jumps from $10,000 to $40,000, though it phases out for households with income above $500,000 and reverts to $10,000 around 2030.

Why it matters: For those living in high tax states or holding significant real estate, this offers meaningful relief – especially if you itemize. It’s a chance to reclaim more of your property and state income tax payments, though timing will be critical given the phase out rules.

  1. New Deductions for Overtime and Tips

For 2025 through 2028, the law introduces a deduction for tips and overtime income income: up to $25,000 for tips and $12,500 for overtime. These deductions are available up to $150,000 AGI for individuals and $300,000 for joint filers.

Why it matters: If you own hospitality or service businesses – or employ tipped labor – this could reduce taxable income significantly. While the impact lessens for higher earners due to phaseouts, the deduction could still shape compensation strategies for your workforce.

  1. “Trump Accounts” for Children (A New Tax Advantaged Savings Vehicle)

Children born between 2025 and 2029 will automatically receive a $1,000 government contribution into a new tax advantaged savings account, with parents able to contribute up to $5,000 annually. Growth is tax deferred, and funds can be used for college, training, or first home purchases.

Why it matters: While modest in size, these accounts add a fresh layer to multi generation planning. High net worth families can leverage them as part of broader tuition or estate planning strategies, especially in states with their own gift or estate taxes.

     4. Charitable Giving Deduction Changes

Two major shifts affect charitable planning:

1. Above the line charitable deduction: Non-itemizers can now deduct up to $1,000 ($2,000 for joint filers) for donations.

2. Limits on high-income deductions: For top earners, charitable deductions now max out at 35% rather than 37%, and total deductions reduce slightly by 0.5% of AGI.

Why it matters: For families with significant giving goals, the tax impact of large donations shrinks slightly. It may be time to revisit giving vehicles – like donor advised funds or charitable trusts – to preserve tax efficiency while meeting philanthropic goals. You might also want to consider pulling in future donations to 2025 as the changes don’t go into effect until January 1, 2026.

    5. Re-Emergence of Itemized Deduction Phase-Out

The bill revives a version of the old “Pease limitation.” For taxpayers in the top bracket, each dollar of itemized deduction now yields a 35% benefit rather than 37%.

Why it matters: This subtle reduction affects deductions for mortgage interest, high property taxes, and charitable gifts. For ultra-high-net-worth households, this reinforces the value of pre-tax strategies – like maximizing retirement contributions and structuring investment income – rather than relying solely on itemized deductions.

Planning Opportunities

• Itemizing vs. Standard Deduction: The new SALT cap and higher standard deduction (rising to $31,500 for joint filers in 2025) change the math. We’ll analyze whether itemizing still makes sense or if bundling deductions into specific years creates better results.

• Employer Strategies: For business owners with tipped or overtime-heavy staff, timing and structuring pay to maximize deductions could save meaningful taxes – just watch the phase-out thresholds.

• Charitable Planning: Consider front-loading gifts in 2025 into donor-advised funds or split-interest trusts to optimize deductions under the new limits.

• Next Generation Funding: New children’s accounts can be incorporated into college and estate strategies, even if the dollar amounts are small relative to your broader plan.

Caveats and Watch Outs

• Phase-Outs: Many benefits diminish quickly as income rises – so expect targeted rather than sweeping savings at higher brackets.

• Expiration Dates: Several provisions sunset in 2028. Planning should factor in the potential for future reversals.

• Implementation Lag: Expect IRS guidance and payroll system updates over the next year. There may be temporary confusion around how new deductions are claimed.

Bottom Line

This tax bill reshapes how deductions and savings vehicles work – particularly for high income and high net worth households. While some provisions offer new opportunities (like the SALT increase or children’s accounts), others trim back existing benefits (like charitable and itemized deductions).

The real key is personalized planning: aligning your giving, investing, and income timing with these new rules to maximize after-tax results. Over the next few months, we’ll be reviewing client strategies and looking for ways to capture opportunities while minimizing surprises.

If you’d like to walk through what this means for your 2025 plan – or explore strategies before year end – let’s talk. These changes are too significant to navigate on autopilot.

Traveling on Purpose: Turning Luxury Vacations into Meaningful Milestones

For many families, vacations are about rest and recreation – time to unwind, see the world, and enjoy hard-earned success. But for those with significant resources, there’s an opportunity to take travel beyond luxury and create something far more lasting: purposeful travel.

Purposeful travel blends the comfort and adventure you expect with intentional goals – strengthening family bonds, serving communities in ways that leave a legacy, or cultivating personal growth through quiet reflection. These trips become milestones, remembered not just for where you went, but for how they shaped your family’s story.

Here are three purposeful approaches that resonate especially well for families who want their travel to matter as much as their investments:

  1. Multi-Generational Adventures that Forge Family Connection

When a family spans multiple generations, gathering everyone under one roof – or even in one country – can be rare. A purposeful family trip creates an intentional space to connect across ages, combining luxury comfort with shared challenges or experiences.

Think of chartering a private expedition yacht in Alaska where grandparents and grandchildren alike participate in guided wildlife research. Or a curated trek through Patagonia, complete with private guides and lodges, where each family member contributes – whether it’s navigating a trail or preparing a shared meal one evening.

The goal isn’t just to “go somewhere” but to actively create shared experiences that knit generations together and build the family narrative. These trips often spark traditions that become part of the family’s legacy.

How to get started:

• Engage a travel advisor who specializes in high-end, family-oriented experiences to ensure logistical ease and privacy.

• Choose a cause or skill that resonates with your family values – conservation, cultural preservation, or even an artistic pursuit.

• Plan structured reflection time, like nightly fireside conversations or a shared family journal to capture insights along the way.

  1. Personal Retreats for Renewed Perspective

Wealth often comes with significant complexity…it’s the often-overlooked paradox of ‘more.’ The pressures of leadership, decision-making, and public life can be relentless. Purpose-driven solo retreats – or even couples retreats – offer rare opportunities to disconnect from constant demands and recalibrate priorities.

Picture a guided silent retreat in the Swiss Alps with world-class amenities, or a secluded desert lodge designed for deep meditation and personal reset. These environments strip away distractions and offer clarity, allowing you to return not just refreshed, but re-centered on what matters most.

How to get started:

• Consider retreat centers that balance privacy with top-tier wellness programming – places that honor both comfort and introspection.

• Recommendations from friends that have gone before are helpful!

• Build a loose itinerary: include guided mindfulness sessions, private hikes, or curated reading lists to deepen the experience.

• Plan for post-retreat integration: a few days of quiet transition before re-engaging fully with work and family life. This is always important so we don’t blow right back into life as usual.

  1. Philanthropic Travel with Measurable Impact

For many affluent families, travel is also a chance to align lifestyle with legacy. Philanthropic adventures – sometimes called “impact travel” – allow you to explore remarkable destinations while supporting initiatives that matter to your family.

Imagine funding and participating in a reef restoration project in the Maldives, or helping construct sustainable water systems in a remote African village – while your family experiences the local culture and learns firsthand about the challenges and solutions. These trips can instill gratitude and broaden perspective for younger generations, while also tangibly advancing causes you care about.

How to get started:

• Partner with established philanthropic travel organizations to ensure projects are ethical, sustainable, and genuinely needed.

• Define your family’s core values (education, conservation, community) and seek projects that align with them.

• Combine service with adventure – balance meaningful work with opportunities to explore and celebrate the destination.

Why This Matters for Families of Means

There is no question that I am bent towards looking at vacation as an escape. I do not think that there is anything inherently wrong with viewing time away from daily life in this light. Sometimes, it is exactly what is needed for recharging.

However, the broader point here is that there is another angle that can be considered. Purposeful travel reframes vacations from “escape” to “investment” – not in dollars, but in relationships, perspective, and legacy. It creates shared experiences that deepen connection, foster gratitude, and remind everyone what your resources are really for: living a meaningful life, not just an affluent one.

These trips also help younger generations see wealth differently – not as entitlement, but as responsibility and opportunity. They become part of the family culture, shaping how future decisions about giving, living, and investing are made.

Next time you plan a trip, ask: What could this mean for our family beyond rest and luxury? The answer might turn your next vacation into one of the defining chapters of your family’s story.

What the Latest Tax Bill Means for You (Without the Jargon)

A significant tax and spending package – nicknamed the One Big Beautiful Bill (OBBBA) – recently passed the U.S. House and is now being debated in the Senate. This isn’t just Capitol Hill chatter – it has direct implications for your financial plans, and I want to make sure you’re informed without getting bogged down by technical jargon.

Here are five key areas currently up for discussion:

  1. SALT Deduction Cap: House Wants $40K, Senate Uncertain

The House-approved bill proposes raising the State and Local Tax (SALT) deduction cap significantly—from $10,000 up to $40,000 (joint filers), permanently. This is a notable change for anyone living in high-tax states or dealing with substantial property taxes.

The Senate, however, hasn’t fully embraced this increase yet. They’re leaning toward maintaining the current $10,000 cap, sparking intense negotiations.

What it means for you:

If you typically itemize and live in a higher-tax region, your deductions – and thus your tax bill – could swing substantially depending on the final agreement.

  1. Child Tax Credit and Family Incentives

Both chambers agree broadly on enhancing the Child Tax Credit. The proposal currently extends the credit at $2,000 per child permanently, with a temporary increase to $2,500 per child until 2028.

The House version also includes a novel initiative: $1,000 “baby bonus” accounts for newborns through 2029. The Senate is debating this component, but no firm commitments yet.

What it means for you:

Enhanced child credits or potential baby savings accounts might mean extra breathing room in your budget or additional savings opportunities.

  1. No Taxes on Tips and Overtime?

The bill includes bipartisan provisions to exempt certain tip income and overtime earnings from federal income tax, at least up to certain thresholds. This initiative targets workers in the hospitality industry, gig economy, and service sectors.

Both the House and Senate versions reflect strong support for making tips and overtime pay partially tax-exempt, potentially putting more money directly into workers’ pockets.

What it means for you:

If your income includes tips or overtime, your net earnings could rise, meaning immediate cash-flow improvements.

  1. Green Energy Credits Could Change Drastically

The House version plans significant rollbacks of existing clean-energy incentives introduced previously under the Inflation Reduction Act. The Senate prefers a more moderate path—keeping credits for geothermal, hydropower, and nuclear energy intact longer, but phasing out solar and wind incentives sooner.

What it means for you:

If you’ve planned home efficiency upgrades or renewable-energy installations, these changes might affect your timing or feasibility, depending on what incentives remain.

  1. Taxes on Social Security Income May Shift

An additional change currently debated is how Social Security income is taxed. The House bill includes proposals to raise the income thresholds at which Social Security benefits become taxable, meaning potentially fewer recipients would owe taxes on these benefits.

The Senate’s stance isn’t finalized yet, but similar adjustments are being seriously considered.

What it means for you:

Retirees—or soon-to-be retirees—might see significant shifts in their taxable income, impacting cash flow, retirement planning strategies, and possibly allowing greater flexibility in your spending plans.

Broader Implications and Timing

  • Deficit Impact:

    The Congressional Budget Office (CBO) estimates the bill could increase the federal deficit by $2.8–$3.8 trillion over the next decade. The tax cuts, expanded credits, and changes in income taxation are major drivers of this projection.
  • Medicaid and Healthcare:

The bill could also affect healthcare spending, potentially tightening Medicaid eligibility rules, which could indirectly affect financial planning for healthcare costs in retirement.

  • Timeline:

After passing the House on May 22, 2025, the Senate is aiming to finalize its version before the July 4 recess, intending to bundle it with a new debt-ceiling increase.  There is still disagreement on these even within the majority party, so the deadline is currently up in the air.

The Bottom Line (for Now)

Given these proposals are still in flux, flexibility will be essential in your financial strategy. Areas to watch closely include SALT deductions, family-related tax credits, changes in taxable income from tips and overtime, renewable-energy incentives, and especially the taxation of Social Security benefits.

We’re closely monitoring these developments. Rest assured that once the final details are clear, we’ll recalibrate your financial plan together – ensuring you’re positioned to make the most of these new opportunities or to mitigate any potential challenges.

Remember, my goal remains unchanged: helping you live your great life right now, confidently navigating whatever comes next. As always, I’m here if you have immediate questions or if any of these changes prompt you to rethink current plans.