How Trump's 'Big, Beautiful Bill' Impacts Your Wallet

Key takeaways for taxpayers, investors, families, and retirees

With the recent passage of Trump’s “Big, Beautiful Bill,” sweeping changes to tax policy, healthcare, and education savings are officially on the books. Whether you are working full-time, preparing for retirement, raising a family, or building your investment portfolio, this legislation is likely to touch some part of your financial life.

At JTM Williams Capital Management, our mission is to help you make sense of major policy shifts and position yourself for long-term success.

Let’s discuss.

Tax Cuts Within The Big, Beautiful Bill 

The new bill permanently extends the core tax cuts from 2017 that were previously set to expire in 2025:

• Lower individual income tax rates

• Larger standard deductions

• Reduced Alternative Minimum Tax (AMT) reach

• Higher exemption thresholds for estate and gift taxes

Additionally, several new deductions and enhancements were introduced to offer relief to working families, retirees, and high-cost-of-living homeowners:

• Tip Income Deduction: Up to $25,000 in tips is deductible through 2028 for individuals with an AGI under $150,000 (or $300,000 for couples).

• Overtime Wage Deduction: Up to $12,500 in overtime pay deductible for single filers (or $25,000 for joint filers), through 2028.

• SALT Deduction Cap Increased: The cap on state and local tax deductions is raised from $10,000 to $40,000 for the next five years.

• Senior Deduction Boost: Taxpayers aged 65+ making less than $75,000 (or $150,000 as a couple) get an extra $6,000 standard deduction through 2028.

• Child Tax Credit: Increased from $2,000 to $2,200, with annual inflation adjustments starting in 2026.

• Auto Loan Interest Deduction: Taxpayers can now deduct up to $10,000 in interest paid on passenger vehicle loans.

  
  

Health Coverage Within The Big, Beautiful Bill 

Healthcare provisions in the bill include a shift toward personal accountability, with expanded savings flexibility:

• Medicaid Work Requirements: Roughly 71 million Medicaid enrollees must now document at least 80 hours per month of work, education, or volunteer service. Some exceptions apply for disability or hardship.

• Expanded Access to HSAs: Health Savings Accounts are now open to individuals with catastrophic coverage or Bronze-tier ACA plans, increasing access to tax-advantaged savings for healthcare costs.

Education Savings Within The Big, Beautiful Bill 

Parents, students, and professionals pursuing continuing education will benefit from expanded use of 529 plans and the introduction of a brand-new account:

• 529 Plan Enhancements:

  • K–12 expense limit increased from $10,000 to $20,000 per year.

  • Eligible expenses now include books, online learning tools, and tutoring.

  • Post-secondary education: 529 funds can now cover credentialing, continuing education, and professional fees.

• New Trump Accounts for Minors:

  • Children under 18 will receive a $1,000 federal seed deposit (pilot through 2028).

  • Families can contribute up to $5,000 annually; employers may add up to $2,500.

  • Funds must be invested in low-cost U.S. index funds, with fees capped at 0.10%.

• ABLE Account Expansion: Enhanced support for individuals with disabilities through increased contribution limits and expanded uses.

• Charitable Giving Deduction: Taxpayers taking the standard deduction can now deduct up to $1,000 in charitable donations ($2,000 for joint filers).

Is Your Financial Plan Aligned with the New Bill?

With the "Big, Beautiful Bill" now in effect, the financial landscape has shifted—and with it, opportunities to optimize your taxes, savings, and long-term planning. But taking advantage of these changes requires more than awareness, it requires strategy.

At JTM, we help individuals and families turn policy changes into proactive financial decisions. From maximizing new deductions to adjusting savings contributions and retirement planning, our team is here to ensure your strategy stays aligned with the latest laws and your future goals.

Ready to see how these updates affect your financial picture?

Let’s build a plan that works for today and tomorrow. Schedule a consultation with JTM Williams Capital Management.