Tax planning can be key to helping you achieve your financial goals. But it can’t happen in isolation. I believe the smartest approach is to align your tax strategy with your overall financial objectives—whether you’re aiming for early retirement, building a legacy for your family, growing your business, or simply keeping more of what you earn.
With the One Big Beautiful Bill Act introducing significant changes to the tax code, it’s more important than ever to stay informed about these new provisions and understand how they may impact your financial planning.
Why Your Financial Goals Should Drive Your Tax Strategy
Starting with your goals—whether that’s building wealth, funding education, supporting causes you care about, or planning for business succession—allows you to design tax strategies that directly support those objectives.
The right tax approach looks different depending on what you’re working toward. Someone planning for early retirement could benefit from strategies that maximize tax-advantaged savings and manage future income distributions. A business owner preparing for succession needs to coordinate ownership transfers, basis planning, and estate considerations. Those focused on charitable giving should integrate tax-efficient giving strategies into their broader financial plan.
By aligning tax strategies with your financial objectives, you can:
- Reduce surprises (higher taxes than expected).
- Capture opportunities earlier (when time is on your side).
- Ensure your tax decisions reinforce, rather than detract from, your goals.
What the One Big Beautiful Bill Act Means for Your Financial Goals and Tax Strategy
The One Big Beautiful Bill Act (OBBB Act) introduced several significant tax changes and extended existing provisions, reshaping how we approach goal-based tax planning. Here are a few key takeaways:
- Individual Income Tax Rates Made Permanent – The lower tax rates introduced in 2017 (ranging from 10% to 37%) are now permanent. This gives families and individuals longer-term clarity for financial planning.
- Increased Standard Deductions – The increased standard deduction amounts introduced in 2017 have been permanently increased and enhanced for 2025 and beyond, with annual inflation adjustments. In 2025, the standard deduction is $31,500 for married couples filing jointly, $23,625 for heads of household, and $15,750 for single filers.
- Enhanced Senior Deduction: Seniors aged 65 and older can claim a new additional deduction of $6,000 per person ($12,00 for a married couple where both spouses qualify). This deduction phases out at a 6% rate of the amount of Modified Adjusted Gross Income (MAGI) over $75,000 for individual filers or $150,000 for joint filers, fully phasing out at $175,000 and $250,000 respectively.
- State and Local Tax (SALT) Deduction Increase – From 2025 through 2029, the cap on SALT deductions increased to $40,000 (from $10,000). The deduction is reduced by 30% of the amount by which a taxpayer’s MAGI exceeds $500,000 for single and joint filers in 2025.
- Permanent Charitable Giving Incentives – Starting in 2026, people who take the standard deduction can also deduct up to $1,000 (single) or $2,000 (joint) for charitable donations. Itemizers will now only deduct the amount that exceeds 0.5% of their income.
- Permanent Increase to the Lifetime Gift & Estate Tax Exclusion – Beginning in 2026, individuals can transfer up to $15 million (or $30 million per couple) without paying federal estate or gift tax.
Proactive Tax Planning Is More Critical Than Ever
Given all these changes, we believe a proactive approach to tax planning is critical. Start by reviewing your financial goals with your financial advisor and identifying the tax strategies that could support them. In light of the OBBB Act changes, consider factors such as whether you’ll itemize or take the standard deduction and how to maximize the benefit of new deductions.
Your financial advisor can support you in incorporating aspects of the changing tax landscape into a holistic financial plan focused on your goals for the future. If you don’t yet have a trusted financial professional, get in touch with us today.
Debra Taylor is not registered with Cetera Wealth Services LLC. Any information provided by this individual is provided entirely on behalf of CWM, LLC and is in no way related to Cetera Wealth Services LLC or its registered representatives.
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