Summary Article on Recently Passed Budget Bill

[Beancounter]

Tax provisions in the One Big Beautiful Bill Act

WWW.THETAXADVISER.COM

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The bill extends portions of the Tax Cuts and Jobs Act, provides deductions to eliminate income taxes on certain tips and overtime pay, and addresses other tax...

I thought the above article summarized nicely some of the key elements of the recently passed budget and tax bill.  Information and knowledge are powerful tools.  

Edited July 8 by Beancounter

[Archangel]

My brother-in-law just asked me about the tax OT as he puts in a lot of OT. I had to confess ignorance because the tax component of the bill wasn’t my primary concern. I saw some information earlier today about the OT implications, however, and this seems to align with that as well. Overall this seems like a helpful, neutral article about a fraught issue. My tax situation is very complicated, so I will be relying on my accountant to sort it out for me. I will unlikely be unaffected by any tax provision, though. Time will tell! 

[RadioRob]

I have a feeling this may end up being closed… but rather than doing so preemptively I’m going to give it a chance.  If it can be kept out of the political arena, it can remain open. 

[+ augustus]

Some of the provisions will sunset in a few years.  Big increase in SALT deduction for those living in high tax states.  A decent break for seniors.  

[Archangel]

I read the effective break on OT deductions is 2%. And yes – it sunsets. The corporate break is effectively 14% and doesn’t have an expiration date in this bill’s iteration. That’s not stopping the next Congress or president from changing either of those things, though. Nothing is static around taxation policy. 

[+ Vegas_Millennial]

The additional $1000 deduction for charitable contributions for those taking the standard deduction is noteworthy, as it can easily be overlooked when preparing your own taxes.

[Archangel]

1 hour ago, Vegas_Millennial said:

The additional $1000 deduction for charitable contributions for those taking the standard deduction is noteworthy, as it can easily be overlooked when preparing your own taxes.

Is that free and clear WITH the SD? To date if you took the SD, charitable donations didn’t matter unless you could itemize. Raising the SD a few years ago really hammered us as a non-profit in budgeting. 

[+ Vegas_Millennial]

18 minutes ago, Archangel said:

Is that free and clear WITH the SD? To date if you took the SD, charitable donations didn’t matter unless you could itemize. Raising the SD a few years ago really hammered us as a non-profit in budgeting. 

From the article in the original post: 

Quote

The bill creates a charitable contribution deduction for taxpayers who do not elect to itemize, allowing nonitemizers to claim a deduction of up to $1,000 for single filers or $2,000 for married taxpayers filing jointly for certain charitable contributions. 

A similar $300 charitable deduction for "nonitemizers" was included in the 2020 tax year returns as part of the Covid relief bills.  I took advantage of it then, but it only lasted one year.

Edited July 8 by Vegas_Millennial

[Archangel]

Well, this is very good news! Going to see my own AGI come down now too. 💯