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๐ ๐ก๐ฒ๐ ๐ข๐๐๐๐ ๐ฆ๐ฒ๐ป๐ถ๐ผ๐ฟ ๐ง๐ฎ๐ ๐๐ฒ๐ฑ๐๐ฐ๐๐ถ๐ผ๐ป โ ๐ฆ๐๐ฎ๐ฟ๐๐ถ๐ป๐ด ๐ฎ๐ฌ๐ฎ๐ฑ ๐
๐ ๐ก๐ฒ๐ ๐ข๐๐๐๐ ๐ฆ๐ฒ๐ป๐ถ๐ผ๐ฟ ๐ง๐ฎ๐ ๐๐ฒ๐ฑ๐๐ฐ๐๐ถ๐ผ๐ป โ ๐ฆ๐๐ฎ๐ฟ๐๐ถ๐ป๐ด ๐ฎ๐ฌ๐ฎ๐ฑ ๐
If youโll be age 65 or older on December 31, 2025, the One Big Beautiful Bill Act (OBBBA) offers a new way to reduce your tax billโwhether or not you itemize.
๐ฐ ๐๐ผ๐ ๐ ๐๐ฐ๐ต ๐๐ฎ๐ป ๐ฌ๐ผ๐ ๐๐ฒ๐ฑ๐๐ฐ๐?
- Up to $๐ฒ,๐ฌ๐ฌ๐ฌ per person
- Up to $๐ญ๐ฎ,๐ฌ๐ฌ๐ฌ for married couples filing jointly (both age 65+)
- Must file jointly to qualifyโeven if only one spouse is eligible
This ๐ฏ๐ผ๐ป๐๐ ๐ฑ๐ฒ๐ฑ๐๐ฐ๐๐ถ๐ผ๐ป is ๐ถ๐ป ๐ฎ๐ฑ๐ฑ๐ถ๐๐ถ๐ผ๐ป to:
– The regular standard deduction
– The existing age-based additional deduction
๐ ๐๐ป๐ฐ๐ผ๐บ๐ฒ ๐๐ถ๐บ๐ถ๐๐
- ๐ฆ๐ถ๐ป๐ด๐น๐ฒ๐: Phases out between $75,000โ$175,000 MAGI
- ๐๐ผ๐ถ๐ป๐ ๐ณ๐ถ๐น๐ฒ๐ฟ๐: Phases out between $150,000โ$250,000 MAGI
(MAGI = Adjusted Gross Income + certain rarely seen tax-free foreign income)
๐ง ๐ฃ๐น๐ฎ๐ป๐ป๐ถ๐ป๐ด ๐ข๐ฝ๐ฝ๐ผ๐ฟ๐๐๐ป๐ถ๐๐ถ๐ฒ๐
To stay under the phaseout thresholds, consider:
- Spreading capital gains over multiple years
- Breaking up Roth IRA conversions
- Adding business deductions or retirement plan contributions
