The "Big Beautiful Bill" (One Big Beautiful Bill Act) significantly impacts homeowners through increased State & Local Tax (SALT) deductions (to $40k), making Mortgage Insurance Premiums (PMI) permanently deductible, and extending other tax perks, though it phases out energy credits, potentially increasing utility costs while aiming to make homeownership more accessible and rewarding, especially in high-tax areas, by boosting disposable income for many.
For homebuyers who put down less than 20% and need to pay mortgage insurance, there's good news: the Big Beautiful Bill makes the mortgage insurance deduction permanent so you can keep writing off mortgage insurance on your taxes. This deduction used to expire regularly, relying on Congress to renew it.
This bill slashes critical funding for Medicaid, Medicare, and the Affordable Care Act, and makes changes that will leave millions uninsured and drive up health care costs for everyone. New York State will announce more details on when to expect changes and how it will affect your health coverage. Learn more here .
[i] The Big Beautiful Bill held both good and bad news for nursing homes, holding off the onerous and costly Biden-era minimum staffing mandates for 10 years while enacting deep Medicaid cuts and reforms that may reduce nursing home census and reimbursement.
The One, Big, Beautiful Bill will cut taxes for Americans earning under $50,000 by 14.9%. 66% of The One, Big, Beautiful Bill's tax cuts benefit families making less than $500,000. The tax cuts and economic growth from The One, Big, Beautiful Bill will increase the take- home pay for a family of four by $10,900.
WASHINGTON — Taxpayers may be able to take advantage of new deductions that could reduce taxable income and increase refunds due to the One, Big, Beautiful Bill, passed by Congress in July 2025. Provisions from the new law can have a significant effect on federal taxes, credits and deductions.
No Senior Tax Deductions – The new law creates a $6,000 annual tax deduction for seniors in 2025-2028, but only people 65 and older are eligible. That means retirees under 65 do not get an added tax benefit.
The Trump tax cuts delivered on their promise to help make the U.S. economy stronger and provide more capital investment to help businesses expand and create jobs.
The 2025 tax rules, established by the "One Big Beautiful Bill Act" (OBBBA) signed in July 2025, bring changes like making lower tax brackets and standard deductions permanent, increasing the Child Tax Credit to $2,200, and adding new deductions for seniors, overtime, and some vehicle interest, while also boosting the SALT deduction cap. Key effects include potential tax savings from the larger standard deduction and new deductions, higher Child Tax Credits, and changes to SALT deductions, with inflation adjustments continuing to modify brackets and figures annually.
Your Social Security benefit could increase significantly under the Social Security Fairness Act, depending on your work history, with estimates showing average boosts of around $360/month (WEP-affected) to $1,190/month (GPO-affected), plus retroactive lump-sum payments back to January 2024, as the Act repealed the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) for many public servants. The exact amount varies, from small increases to over $1,000 monthly, impacting those with non-Social Security pensions, and you should receive a notice from the SSA.
“For my own personal mental health and well-being, I like being active and working.” Cavedon is part of a growing number of baby boomers, many of whom are college-educated, who continue to work well past 65 not because they can't afford to retire, but simply because they love their work—and don't want to give it up.
People who turned 65 by Dec. 31, 2025, are eligible for the new deduction, according to the IRS. The deduction provides $6,000 for each qualifying individual, or $12,000 for married couples who both qualify. The tax break is subject to income limits.
The "nursing home 5-year rule," or Medicaid's 5-Year Look-Back Period, is a federal Medicaid law requiring states to check for asset transfers (like gifts or selling for less than fair value) made within five years before applying for nursing home care, triggering a penalty period of ineligibility for benefits if violations are found, ensuring individuals spend their own money first before relying on Medicaid. This penalty is calculated by dividing the value of the transferred assets by the average monthly cost of nursing home care, resulting in a delay in receiving benefits.
Want to make your assets virtually untouchable by creditors and lawsuits? Equity stripping may be the answer. This advanced technique involves encumbering your assets with liens or mortgages held by friendly creditors, such as an LLC or trust you control.
To avoid a nursing home taking your house, plan ahead with an elder law attorney by using strategies like irrevocable trusts (Medicaid Asset Protection Trusts) or life estates, which remove the home from countable assets for Medicaid eligibility after a 5-year "look-back period," allowing you to qualify for aid while preserving the home for heirs. Other options include purchasing long-term care insurance, transferring assets strategically, or setting up a "sell-and-stay" agreement with a company, but always consult a lawyer first to navigate complex rules like the Medicaid look-back period.
The IRS 7-year rule primarily applies to keeping records for claiming a deduction for bad debts or losses from worthless securities, allowing a longer period to file for a credit or refund, but it's not a universal audit limit; it's often a recommended safe buffer for general record-keeping, with the standard IRS audit period usually being 3 years, extending to 6 years for substantial income omission (over 25%) or foreign income issues, and indefinitely for fraud.
One-time forgiveness, officially known as First-Time Penalty Abatement (FTA), is an IRS program that allows qualified taxpayers to have certain penalties removed from their tax accounts.