The One Big Beautiful Bill Act (OBBBA) introduces new tax credits and deductions, potentially lowering your tax bill. Watch out for traps that could limit savings. Changes coming in 2026, allowing time to adjust. Notable new deduction for seniors over 65, but income thresholds apply. Deductions phased out for higher incomes.

OBBBA raises State and Local Tax (SALT) deduction cap to $40,000 by 2025. Beneficial for high-tax states like NY, CA, NJ, and CT. Deduction phased out for incomes over $500,000. Watch for big gains or bonuses pushing you over the threshold. Don’t miss out on this limited-time deduction.

New floor for charitable contribution deductions in OBBBA. Only donations exceeding 0.5% of AGI deductible. Consider timing donations to maximize deductions. Neglecting this rule could be costly. Plan ahead for potential pitfalls and benefits in the OBBBA. Start preparing now to adjust your financial plans accordingly.

Read more at Yahoo Finance: Massive tax changes are coming in 2026 with 3 hidden traps. Move now before you get hurt