If you have glanced at the news lately, you might have heard about the One Big Beautiful Bill, a sweeping new law signed into effect on July 4, 2025. While the name is flashy, what’s inside the bill matters a whole lot more. This legislation touches nearly every aspect of personal finance, from income taxes and deductions to retirement and savings.

And here’s the bottom line: your financial strategy might need an update.

At Flagship Capital Advisors we have taken a deep dive into the details, so you don’t have to.

First, What Is the One Big Beautiful Bill?

This legislation is Congress’s attempt to lock in many of the tax breaks first introduced in 2017, while adding a few new twists aimed at helping working families, small business owners, and retirees.

The law makes the lower individual tax brackets and higher standard deductions permanent. It also lifts the cap on state and local tax (SALT) deductions, expands the child tax credit, adds new deductions for things like overtime, tips, and even car loan interest and introduces something totally new: $1,000 government-seeded savings accounts for every newborn.

Some of these changes are here to stay. Others are set to expire in a few years. But all of them could affect your financial picture.

What Stands Out and What You Should Do About It

Standard Deduction Locked In

The standard deduction increases are now permanent: $15,750 for single filers and $31,500 for joint filers. That’s great news for most households, but if you are someone who typically itemizes, it’s worth reviewing whether that still makes sense. In some cases, it may be smarter to “bunch” charitable donations or expenses into every other year to get the best of both worlds.

SALT Deduction Relief​

For those living in higher-tax states, the cap on SALT deductions has been raised to $40,000 for couples earning under $500,000. This could be a game changer especially for homeowners. It’s a good time to re-evaluate your itemized deductions and see if it makes sense to take advantage of this expanded limit.

Deductions for Overtime and Tips​

If tips or overtime make up a big part of your paycheck, the new law brings a welcome break. ​
From now through 2028, workers earning less than $150,000 (single) or $300,000 (joint) can claim:

• • Up to $25,000 a year in deductions for tip income
  • Up to $12,500 (single) or $25,000 (joint) for overtime pay

You don’t have to itemize to use these deductions, just be sure your employer reports them correctly on your W-2.

This is especially helpful for folks in hospitality, health care, logistics, and hourly-based work. That said, it’s crucial to document your income carefully to qualify.

A Boost for Seniors​

If you are over 65, there’s a new $6,000 deduction per person available for individuals and $12,000 for couples. This starts phasing out above $75,000 in income, so timing and planning will be key. For retirees living on IRAs or pensions, this creates a unique window to manage withdrawals and stay under the threshold. We can help you structure your income distributions to take advantage of this new deduction. ​

A Surprising Deduction: Car Loan Interest​

For the first time, the law allows a deduction of up to $10,000 per year for car loan interest if the vehicle is assembled in the U.S. This change lasts through 2028. So if you’re considering a new car, it’s worth checking where it’s built and whether it qualifies.

More Help for Families: Bigger Child Tax Credit​

Parents, you’ll be pleased to know that the Child Tax Credit has been bumped to $2,200 per child and will now increase with inflation. This is real money back in your pocket and is especially helpful when balancing childcare, school expenses, or college savings.

Newborn Accounts: A Unique Opportunity

One of the more talked-about features of the bill is the creation of new “Trump Accounts” for newborns. Every child born between 2025 and 2028 will automatically receive $1,000 in a government-seeded savings account. Families can then contribute up to $5,000 per year, and funds can be used tax-free for education, housing, or job training.

It’s a unique opportunity for long-term planning, whether you’re a new parent or a grandparent looking to build a legacy. We can show you how this compares with 529 plans or custodial accounts and how to integrate it into your broader wealth plan.

And Good News for Business Owners​

If you are a small business owner or independent contractor, you will be glad to hear that the Qualified Business Income (QBI) deduction allowing for a 20% deduction on pass-through income has been made permanent. But the income thresholds have changed, so it’s important to review how your business is structured.

The Bottom Line​

This law presents a mix of permanent reforms and temporary opportunities, which makes 2025 apivotal year for planning. Many of these provisions are retroactive to January 1, meaning the clock is already ticking.

We are help you make sense of it all and adjust your plan accordingly.

Flagship Capital Advisors ​
Your Wealth, Your Future, Our Commitment

Disclaimer: Flagship Capital Advisors does not provide tax or legal advice. For questions related
to tax or legal matters, please consult a qualified tax professional or attorney.