One Big Beautiful Bill Act Retirement Tax Planning for Central Texas Retirees
- Morris & Pursley Financial Plans
- Sep 16
- 3 min read
The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, makes sweeping changes to the U.S. tax code. For retirees in Central Texas these changes could directly impact how you manage income, Social Security benefits, and retirement withdrawals.
While headlines focus on the “big picture” tax reforms, the most powerful retirement planning opportunities are hidden in the details.
This post covers:
The new temporary senior deduction
The permanent tax bracket structure
The higher standard deduction
Smart strategies tailored to Central Texas retirees
What Is the New Senior Deduction in OBBBA?
Short Answer: Starting in 2025, retirees age 65 and older can claim an additional $6,000 deduction ($12,000 for married couples if both qualify).
Key Details
Applies from 2025 through 2028.
Phaseout begins at $75,000 AGI (single) or $150,000 (married filing jointly).
Fully phased out at $175,000 (single) or $250,000 (married filing jointly).
You can use this deduction even if you take the standard deduction—no itemizing required.
Why It Matters in Central Texas
The One Big Beautiful Bill Act retirement tax planning opportunities are especially valuable for Central Texas retirees who rely on Social Security and pension income.
Many retirees here rely on a mix of Social Security, pensions, and investment withdrawals. This deduction can help keep taxable income lower and reduce how much of your Social Security benefits are taxed.
With high property taxes in Travis, Williamson, and Bexar counties, every dollar saved in federal taxes helps balance the local cost of living.
Permanent Tax Brackets: Predictability for Retirees
One of the most overlooked parts of OBBBA is that it makes the 2017 Tax Cuts and Jobs Act brackets permanent.
That means:
No automatic tax hikes in 2026.
Retirees can confidently plan Roth conversions, charitable giving, and estate transfers without worrying about sudden bracket changes.
New Standard Deduction for 2025
$15,750 for singles
$31,500 for married filing jointly
$23,625 for head of household
And remember, seniors can stack the new $6,000 deduction on top of these amounts. For example, a local married couple, both 65 or older, could deduct up to $43,500 before income is taxed.
How the One Big Beautiful Bill Act Affects Retirement Tax Planning in Central Texas
Roth Conversions
Spreading conversions across several years may help you stay under phaseout thresholds and maximize tax savings.
Required Minimum Distributions (RMDs)
If you’re age 73+, RMDs could push you into higher income ranges. Planning ahead is key to avoid losing the senior deduction.
Property Tax Pressures
With Texas property taxes among the nation’s highest, reducing federal tax liability helps offset local housing costs for retirees.
Estate and Gifting Strategies
The stability of permanent brackets gives retirees more confidence in making long-term estate and gifting plans.
Common Questions About OBBBA
Will Social Security benefits be tax-free now?
No. OBBBA doesn’t eliminate Social Security taxation, but the senior deduction can reduce the amount of benefits subject to tax.
Do I have to itemize deductions to claim the $6,000 senior deduction?
No. It’s available whether you itemize or not.
How long will this deduction last?
Through 2028, unless Congress extends or changes it.
5 Planning Steps for Central Texas Retirees
Check your income against phaseout thresholds each year.
Time your Roth conversions to avoid losing the deduction.
Pair RMDs with non-taxable withdrawals to stay within limits.
Take full advantage of the higher standard deduction before itemizing.
Work with a retirement planner who understands Central Texas tax and cost-of-living realities.
For Central Texas retirees, OBBBA brings both challenges and opportunities. The new senior deduction, permanent brackets, and higher standard deduction create room for smarter tax planning—if you act strategically.
At Morris & Pursley Financial Plans, we specialize in helping retirees make the most of every dollar.
Ready to see how OBBBA impacts your retirement income? Schedule a consultation today.
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