The Tax Code Shake-Up: Reshaping Planning for Every Stage of Life

January 12, 2026 | TS Prosperity Group

Our team at TS Prosperity Group remains steadfast in providing clarity and confidence during times of change. We created the “Preparing for 2026 & Beyond: Tax Code Updates” series is to provide a depth of knowledge from those you’ve come to know and trust, and to view tax updates as more than a policy change--but as an opportunity with fiduciary-focused recommendations to help you DO MORE for your future.

Part Five -“The Tax Code Shake-Up: Reshaping Planning for Every Stage of Life”

In our final article, we wrap up with some general changes that the One Big Beautiful Bill Act (OBBBA) brings to every taxpayer—no matter their stage of life. From permanent tax brackets to new qualified deductions and credits, these new tax laws may affect each individual situation. Having this knowledge in your back-pocket can help you ask the right questions at your next tax planning appointment or annual meeting with your Financial Planner.

The July 4^th Tax Changes didn’t just tweak a few numbers—they rewrote parts of the tax code that will affect nearly every American, no matter their age or stage of life. This isn’t a temporary shift. These permanent rules could change the way you save, spend, and invest for decades to come.

Permanent Tax Bracket Adjustments

While we noted the simplified seven-bracket system in Part One of our series, this permanent change is important enough to mention again.

Keeping the tax brackets at these lower rates--10%, 12%, 22%, 24%, 32%, 35%, 37%--provides many key benefits to nearly all taxpayers.

It’s estimated that nearly 62% of filers will see a tax cut, with after-tax incomes increasing by an average of 2.9%. Having additional income for families and individuals means making additional contributions to a retirement strategy or saving for college expenses may be a much more tangible goal.

Standard Deductions and Child Tax Credits

The Tax Cuts and Jobs Act (TCJA) increased the standard deduction for taxpayers and increased the Child Tax Credit. The OBBBA not only made these increases permanent, but further expanded them and set them to continue adjusting for inflation in future years.

For 2025 the Standard Deductions and Child Tax Credits are as follows:

Additional Qualified Deduction

While we’ve noted many new qualified deductions--from the senior “bonus” deduction and the charitable contribution deduction in part one to the tips and overtime deductions in part two—there is yet one more beginning in 2025 and ending in tax year 2028: car loan interest.

Here’s the catch on this car loan Interest: your car must be brand-new, be purchased for personal use, assembled in a U.S.- based factory. How can you tell if your auto qualifies? Dealerships can use the vehicle identification number (VIN) to verify where it was assembled.

If your new vehicle qualifies, you may be able to deduct up to $10,000 of interest on the purchase for taxpayers, provided your modified adjusted gross income (MAGI) is $100,000 or less ($200,000 or less for married couples filing jointly).

But Some Things Must Come to an End

While many of the OBBBA’s changes have added or increased deductions and credits, some are being eliminated.

Popular energy credits and select deductions are being removed, affecting those who planned to leverage them for home or efficiency upgrades. Here’s a quick glance at what is going away and when:

These major tax code shake-ups touch nearly every corner of financial planning—spending strategies, retirement income withdrawal strategies, investment tax-loss harvesting, charitable giving, and even estate settlement.

Over the past several weeks, our specialty series has explored what these changes mean for retirees, business owners, families, and estates. With the right guidance, these changes don’t have to feel overwhelming — they can become opportunities. Whether it’s maximizing income, simplifying taxes or protecting your legacy, our team is here to help you approach the future with clarity and confidence.

Together, we can transform new rules into lasting impact for you and your family. Contact us at (877) 487.3115 or fill out the form below to schedule your complementary Discovery Meeting. 

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