On July 4th, 2025 an 870-page tax bill called the 'One Big Beautiful Bill Act' (OBBBA) was signed into to law. Some parts have been heavily discussed and others not so much. So we dug around ourselves and pulled out some hidden messages you may have missed that could have major implications to your FI (Financial Independence) journey.

👉🏽 Updates to 2017 'Tax Cuts and Jobs Act' Makes permanent the lowered individual tax brackets established by the Tax Cuts and Jobs Act and keeps the larger standard deduction in place. Also makes permanent the higher lifetime estate gift tax exemption and increases it to $15 million for single & $30 million for married couples in 2026 (indexed to Inflation).

👉🏽 Updates to 2021 'American Rescue Plan' Expiration of the Enhanced ACA premium subsidies (not directly in the bill, it's just not being extended). The lowered premiums will expire and revert back to pre-covid levels. The Subsidy Cliff will be back in play starting 1/1/26. This is a major part of the negotiation with the current federal government shutdown so may be subject to change.

We cover these topics in the new law:

1. Increased Standard Deduction
2. Extra Senior Deduction
3. SALT (State And Local Tax) Deduction Cap Raised
4. Changes with HSA (Health Savings Account) qualifications
5. Child Tax Credit, Dependent Care FSAs, & Dependent Tax Credit
6. Introduction of Child Savings Accounts
7. 529 College Savings Plan Enhancements
8. Deduction for Charitable Contributions Deduction (even if you take the standard deduction)
9. New Temporary Deductions (2025–2028), Even for those who don't itemize
10. Overhaul of Student Loans

📩 Sign up for our newsletter (NEW!)

🌐 Visit Catching Up to FI website

🔗Connect with us

☕ Like what you hear on Catching Up to FI? Support the show at "Buy Me a Coffee"

🎙️We love hearing from you! Record a Voice Message with your feedback or question Record a Voice Message with your feedback or question

===DEALS & DISCOUNTS FROM OUR TRUSTED PARTNERS===

🆕NEW PARTNER: Alloy

The Alloy Market offers a seamless and efficient way to sell your gold, silver, and platinum jewelry, regardless of its condition. They are committed to transparency and fairness, ensuring you get the best possible value for your items. Use this special Link and enter code CUTOFI15 to get a $15 bonus when you sell items over $199 (limited time offer).

For a full list of current deals and discounts from our partners, sponsors and affiliates, click here: catchinguptofi.com/our-partners

RESOURCES MENTIONED ON THE SHOW: (As an Amazon Associate, I earn from qualifying purchases.)

🌐Full Text of the Bill signed into law on 7/4/25

Newsletter with OBBBA Tax Law Toolkit Includes additional content from trusted resources & experts)

IRS Factsheet for OBBBA

Key Elements: 'One Big Beautiful Bill Act' from CFP Board

Newsletter with OBBBA Tax Law Toolkit (Includes additional content from trusted resources and experts)

⏰ 'Catching Up to FI' Episodes

Banishing The Burden of Student Loan Debt | Travis Hornsby | 122

A Hero's Journey: Krista & Ed, The Mother of All Case Studies! | Krista and Ed Kim | 97

Millennial Revolution is in The House! | Kristy Shen, Bryce Leung & Little Matchstick | 93

If you enjoyed this episode, please follow the show on your podcast player and leave us a rating or review. If you want to watch, be sure to subscribe to our YouTube Channel. This helps others find the show and keeps us creating great content for you!

⚠️Disclaimer: Our content is for general education and information purposes only. We are not providing financial, legal, or tax advice. Always do your own research or consult a professional before making important decisions.