1 of 45

SCAN THE ABOVE QR CODE BEFORE AND AFTER EACH PRESENTATION TO GET CE CREDIT

Sign In Code:

1313

2 of 45

Key Provisions of the �One Big Beautiful Bill Act (OBBBA)

Jeffrey Levine, CPA/PFS, CFP^®, TPCP^®, RICP^®, ChFC^®, AIF^®, CWS^®, BFA�Chief Planning Officer, Focus Partners Wealth�Professor of Practice in Taxation, The American College�Lead Financial Planning Nerd, Kitces.com

04.28.2026 |FPA All-Ohio

Slides & Materials: Text OBBBA to 33777

@CPAPlanner

3 of 45

What Are We Going To Cover

01

02

03

Income Tax Planning

What’s Staying (Close to) the Same?

Income Tax Planning

What’s Meaningfully Different

Income Tax Planning

What’s New/Totally Different

04

05

06

Estate Tax Planning

College Planning

Health Care Planning

@CPAPlanner

4 of 45

A Word of Warning �Before We Begin:��Never judge the impact of a bill on a client’s bottom line from a single provision.

@CPAPlanner

5 of 45

Income Tax Planning

What’s Staying Close to the Same?

@CPAPlanner

6 of 45

Ordinary Income Tax Brackets

Today’s tax brackets remain in place
10%, 12%, 22%, 24%, 32%, 35%, 37%
“Permanent”
A little twist with the lower brackets for 2026

10% bracket gets an extra inflation adjustment
12% bracket gets an extra inflation adjustment
The start of the 22% bracket gets an extra inflation adjustment

Net effect is a smaller 22% tax bracket

For informational purposes only

@CPAPlanner

7 of 45

Standard Deduction

Remains “roughly doubled”
2026 standard deduction amounts

MFJ: $32,200
Single: $16,100
HOH: $24,150

“Permanent”

For informational purposes only

@CPAPlanner

8 of 45

Itemized Deductions

Miscellaneous itemized deductions remain repealed
Pease limitations (3% reduction in itemized deductions) remains repealed
Mortgage interest deduction capped for interest on no more than $750,000 of principal

Some mortgage insurance premiums will be allowed to be treated as interest

HELOC interest generally continues to be non-deductible
Personal casualty losses continue to be limited to disaster areas

OBBBA expands eligible losses to state-declared disaster areas

All “permanent”

For informational purposes only

@CPAPlanner

9 of 45

Other Deductions

Deduction for moving expenses continues to be repealed

Above-the-line deduction
OBBBA allows the deduction for military

Deductions for personal exemptions continue to be repealed*
All “permanent”

*Technically not an itemized deduction, but “close enough” for something that’s still repealed☺

For informational purposes only

@CPAPlanner

10 of 45

Child Tax Credit

Nonrefundable portion increased ($2,200 for 2026)
Increased refundable portion ($1,700 for 2026) made permanent
Both portions indexed for inflation
“Permanent”

For informational purposes only

@CPAPlanner

11 of 45

Business-Related Provisions for Individuals

QBI Deduction

Deduction extended for 2026+
Phaseout ranges increased to $150K (⬆ from 100K) for joint filers and to $75K (⬆ from 50K) for other filers

Limitation on excess business losses extended for 2026+

$512,000 for 2026 for joint returns
$256,000 for 2026 for other filers

“Permanent”

For informational purposes only

@CPAPlanner

12 of 45

Student Loans

Student loan debt discharged via death or disability is non-taxable
Employers may exclude up to $5,250 from compensation for payments of employees’ student loans as “educational assistance”
“Permanent”

For informational purposes only

@CPAPlanner

13 of 45

ABLE Account Rules

Contributions remain eligible for the Saver’s Credit
529-to-529A (ABLE Accounts) continue to be allowed
Contributions to ABLE accounts continue to remain at the annual gift tax exclusion amount, plus if the ABLE beneficiary is working, an additional amount up to Federal Poverty Level for a one-person household
All “permanent”

For informational purposes only

@CPAPlanner

14 of 45

Miscellaneous Additional Rules

Cash contributions to “50%” organizations limited to 60% of AGI

“Permanent”

Pass-Through Entity Taxes (PTETs) remain unaffected

No impact from OBBBA

HSA limits remain the same

No impact from OBBBA

For informational purposes only

@CPAPlanner

15 of 45

Income Tax Planning

What’s Meaningfully Different?

@CPAPlanner

16 of 45

State and Local Taxes

Max itemized deduction increased to:

$40,400 for 2026 for everyone but MFS
$20,200 for 2026 for MFS

“Extra” SALT deduction (in excess of TCJA rules) phased out by 30% of income in excess of:

$505k for 2026 for everyone but MFS
$252.5k for 2026 for MFS

Ignoring all other provisions, net effect is increase of taxable income of $130k as AGI goes from ~$505k - $605k / $252.5k - $352.5k
Effective 2025 - 2029

@CPAPlanner

17 of 45

Alternative Minimum Tax

TCJA-increased exemption amounts and phaseout ranges “permanently” extended, BUT….

Income phaseout back to 2018 amounts $1,000,000 MFJ / $500,000 single

Effective 2026
Net effect is that AMT will continue to be a non-issue for most clients, but there will be a meaningful increase in the amount of clients who are subject to the tax

@CPAPlanner

18 of 45

Adoption Credit

Up to $5K of credit is refundable
Effective 2025

For informational purposes only

@CPAPlanner

19 of 45

Green Energy Credits

All sorts of phase outs earlier than would otherwise be the case

Clean vehicle credit available for purchases through September 2025
Residential energy credits available through 2025

@CPAPlanner

20 of 45

Business Owner Provisions

Section 179 deduction

Maximum amount of property that can be expensed increased to $2.56M for 2026
Maximum amount reduced by qualifying property that exceeds $4.09M for 2026
Effective 2025+
“Permanent”

Bonus depreciation

Reinstates 100% expensing of property acquired and put into service beginning January 20, 2025
Was slated to be 40% in 2025 and eliminated in 2027
Contract date is key
“Permanent”

For informational purposes only

@CPAPlanner

21 of 45

Business Owner Provisions

Qualified Small Business Stock

Creates tiered gain exclusion

50% for stock held for more than three years
75% for stock held for more than four years
100% for stock held for more than five years

Per issuer dollar cap increased to $15M (⬆ from $10M)
Increases the assets a business can have while still issuing QSBS to $75M (⬆ from $50M)
Generally effective for stock acquired after enactment

For informational purposes only

@CPAPlanner

22 of 45

Qualified Opportunity Zones

No change to rules for current QOF investments
Ongoing renewable program on a decennial basis

Beginning July 1, 2026

Tax rules for investments made in 2027+

Tax deferral on re-invested gain for 5 years
Investors receive a basis increase after 5 years:

10% for “regular” QOF fund
30% for Qualified Rural Opportunity Fund

@CPAPlanner

23 of 45

Income Tax Planning

What’s Meaningfully Different?

@CPAPlanner

24 of 45

Deduction for Seniors

Additional deduction of $6k for each qualifying individual
Must be 65 or older by the end of the year
Deduction phased out between:

$150k-$250k for MFJ
$75k - $175k all other filers

Below the below-the-line-deduction deduction
Applies 2025 – 2028

@CPAPlanner

25 of 45

Enhanced Deduction for Seniors

Being “marketed” as “No tax on Social Security”
Be prepared to address questions in a factual, non-partisan manner, including misleading statements from Governmental entities
Excerpt from email from Social Security Administrations to beneficiaries

@CPAPlanner

26 of 45

No Tax on Tips

More accurately “No INCOME tax on SOME tips”
Maximum deduction $25K for all taxpayers except MFS ($0)
Deduction phased out by 10% of income in excess of threshold amount

$300K for MFJ
$150K all other filers

Anti-abuse rules to prevent “regular” income from being classified as “tips”
Below the below-the-line-deduction deduction
Applies 2025 – 2028

For informational purposes only

@CPAPlanner

27 of 45

No Tax on Overtime

More accurately “No INCOME tax on SOME overtime”
Maximum deduction:

$25K for MFJ
$0 MFS
$12,500 all other

Deduction phased out by 10% of income in excess of threshold amount

$300K for MFJ
$150K all other filers

Regular overtime rules

Section 7 of Fair Labor Standards

Below the below-the-line-deduction deduction

Applies 2025 – 2028

For informational purposes only

@CPAPlanner

28 of 45

Car Loan Interest

Maximum deduction $10k for all filers
Deduction phased out by 20% of income in excess of threshold amount:

$200k for MFJ
$100k all other filers

Key limitations include:

New cars only
Lease financing does NOT count
Final assembly must occur within the US

Below the below-the-line-deduction deduction
Applies 2025 – 2028

@CPAPlanner

29 of 45

Charitable Deduction for Non-Itemizers

Maximum deduction:

$2k for MFJ
$1k for all others

Below the below-the-line-deduction deduction
Contributions must be made in cash
Applies beginning in 2026
“Permanent”

@CPAPlanner

30 of 45

The New Category of Below the Below-the-Line-Deductions Deductions

Qualified Business Income (QBI)

Enhanced Deduction for Seniors
No Tax on Tips
No Tax on Overtime
Car Loan Interest

Charitable deduction for non-itemizers

Effective in 2025 and permanent

Effective in 2025 through 2028 only

Effective in 2026 and permanent

For informational purposes only

@CPAPlanner

31 of 45

New Overall Limit on Itemized Deductions

Value of itemized deductions capped at a maximum of 35%
Effective 2026+
“Permanent”

@CPAPlanner

32 of 45

New AGI Floor for Itemized Charitable Contributions

0.5% AGI floor charitable contributions must exceed to be deductible

Similar to the way that medical expenses are deductible

Effective 2026+
“Permanent”

@CPAPlanner

33 of 45

Trump Accounts

Built on the Traditional IRA chassis
Max contribution of $5k / year

Non-deductible

Contributions only allowed in years beneficiary is under 18
Until age 18, investments generally limited to:

US mutual fund or ETF that:

Tracks the return of a qualified index (essentially a US equity index of some kind)
Does not use leverage
Has an annual fee of 0.1% or less

Distributions generally not allowed prior to the year the beneficiary reaches age 18

Will follow pro-rata rule, but will not be combined with other Traditional IRAs

@CPAPlanner

34 of 45

Trump Accounts

Death of a beneficiary prior to age 18 follows rules similar to HSA accounts

Account ceases to be a Trump account immediately
Taxable to Trump account beneficiary if beneficiary of account is Trump account beneficiary’s estate
Taxable to other beneficiary if anyone else is named beneficiary

Employers will be able to contribute up to $2,500 to the Trump acct of employee's dependents and exclude from income
Effective one year after enactment
Pilot program

Treasury-provided $1,000 contributions to Trump accounts of individuals born 2025 - 2028

@CPAPlanner

35 of 45

New Credit for Donations to Scholarship-Granting Organizations (SGOs)

Tax credit of up to $1,700 per taxpayer for cash contributions to public charities that grant scholarships to private or religious K-12 schools
Requires state opt-in to program
Nonrefundable
Effective date 2027+

For informational purposes only

@CPAPlanner

36 of 45

Estate Tax Planning

@CPAPlanner

37 of 45

Estate Tax Exemption

2026 exemption amount to be $15MM per person (adjusted in the future for inflation)
Equates to what is essentially a ~7.25% inflation adjustment between 2025 and 2026
Portability remains
“Permanent”

@CPAPlanner

38 of 45

Healthcare Planning

@CPAPlanner

39 of 45

HSA-Eligible Insurance Coverages Expanded

Bronze and catastrophic plans treated as HSA-eligible high-deductible health plans

Effective 2026

For informational purposes only

@CPAPlanner

40 of 45

Medicaid

Cuts $700B in funding over the next 10 years
Creates new work, education, or service requirements for able-bodied adults with no children

Effective 2026

Eliminates benefits for certain undocumented immigrants

For informational purposes only

@CPAPlanner

41 of 45

Education Planning

@CPAPlanner

42 of 45

529 Account Expansion

Qualified expenses include

Costs incurred in connection to enrollment/attendance at public, private, or religious elementary or secondary schools

Tuition
Curriculum materials
Books
Online materials
Tutoring needs (subject to certain limitations)
Effective 7/5/2025+

Maximum annual limit for above expenses limited to $20K (⬆ from 10K)

Effective 2026+

Qualified postsecondary credentialing expenses

Tuition, fees, books, and any other expenses required for enrolling in a recognized postsecondary credential program;
Fees for exams required to obtain or maintain the credential; and
Fees for continuing education necessary to maintain the credential
Effective 7/5/2025+

For informational purposes only

@CPAPlanner

43 of 45

Student Loan Summary

August 1, 2025

SAVE forbearance ends; 0% interest subsidy ends; payments

July 1, 2026

Those on PAYE will be moved to IBR
Repayment Assistance Plan (RAP) scheduled to be available

MFS strategy remains

Deadline for Parent PLUS borrowers to consolidate and be eligible for IBR

July 1, 2028

SAVE, ICR, and PAYE phased out

Planning Strategy

Individuals on IBR can remain on IBR
Individuals in the following categories should switch to IBR and resume loan payments:

Pursuing PSLF
Will eventually pay off loans
Will get long-term loan forgiveness and have rising real income

For informational purposes only

@CPAPlanner

44 of 45

QUESTIONS?

Slides & Materials: Text OBBBA to 33777

45 of 45

SCAN THE ABOVE QR CODE BEFORE AND AFTER EACH PRESENTATION TO GET CE CREDIT

Sign Out Code:

4313