YOUR MONEY 1 The new law extends Act
current federal tax brackets and rates, which had been set to expire at the end of 2025. These rates are now
Now to Reduce Your Tax
Burden
6 ways to take full advantage of sweeping changes in Trump’s new law. ::
BY JILL SCHILDHOUSE T
he one big beautiful Bill, signed into law by President Donald Trump on July 4,
brings sweeping tax changes that will affect all Americans — especially if you’re in or nearing retirement. It’s important that you
evaluate your tax situation now to make sure you can take full advantage of these changes before it’s too late. Here are six key points of the
legislation that could benefit you when you file your 2025 taxes.
TAX BRACKETS/AREKMALANG/GETTY IMAGES / ESTATE/ COLDSNOWSTORM/GETTY IMAGES / SENIOR/WILLIAM_ POTTER/GETTY IMAGES / DATA/ANDRIY ONUFRIYENKO/ GETTY IMAGES / PIGGY BANK/PM IMAGES/GETTY IMAGES / CALCULATOR/JJ GOUIN/GETTY IMAGES / CONGRESS/DAVID SHVARTSMAN/GETTY IMAGES / DONATION/JAMIE GRILL / GETTY IMAGES / MONEY/JACKAL PAN/GETTY IMAGES
permanent (unless, of course, Congress decides to change them). And because of inflation, the standard deduction is also increasing.
It’s now $15,750 for single filers and $31,500 for married couples filing jointly starting in 2026, with future adjustments tied to inflation. CPA David Burnett
notes that while these changes may be welcome for many taxpayers, high earners should be aware of a new limitation for 2026.
“The bill caps the value of each dollar of itemized deductions at 35 cents for those in the top bracket,” he says. “Taxpayers in this situation may want to accelerate itemized deductions — especially charitable contributions — into 2025 to avoid this limitation.”
3 A new tax advantage
allows individuals age 65 and older to claim an additional $6,000 deduction ($12,000 for couples). This is on top of the existing standard deduction. But it is temporary — for tax years
2025 to 2028. Also, the new senior
deduction gets phased out for singles with modified adjusted gross income (MAGI) over $75,000 and is eliminated for singles with income over $175,000. Joint filers start to get
phased out with MAGI above $150,000, and lose it entirely when their income reaches $250,000. Tom Wheelwright,
CPA, says: “Seniors with incomes below the phase- out threshold will see meaningful tax relief.”
5 Wheelwright highlights
a critical provision for business owners who have qualified small business stock (QSBS) that was issued after July 4, 2025. Before, small business
owners could exclude 100% of the gain on selling their QSBS only after a five- year holding period.
86 NEWSMAX MAXLIFE | DECEMBER 2025 Now, the holding period
is shorter: You can exclude 50% of the gain for QSBS held for at least three years, 75% for four years, and 100% for five years. Also, the maximum
exclusion amount used to be $10 million. Now, it’s $15 million. Wheelwright says this is especially
important for business owners thinking about selling their businesses to fund their retirement. With proper planning,
they can avoid as much as $3 million in capital gains taxes on the sale of their business, and more if they have partners or do additional planning.
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