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Wondering how the new One Big Beautiful Bill Act (OBBBA) changes your client's taxes vs. the old rules? We've got you covered!
You can compare various calculations for your tax projections within Scenario Analysis. In this article and the short video below, we walk through the steps to make that comparison.
Within Scenario Analysis, the first section includes general information for your scenarios. Two of those options are the tax year of the projection and the tax calculation method used, among others, as outlined in the screenshot below. In the example below, let's assume we already created a 2025 tax projection titled "2025 Baseline" under the then-current tax law, the Tax Cuts and Jobs Act (TCJA). The TCJA was signed into law in 2017 and impacted tax years 2018 - 2025.
The new One Big Beautiful Bill Act (OBBBA) was signed into law on July 4, 2025, and includes various provisions that have different start dates and make either temporary or permanent changes to tax law, based on the particular provision in question. For a summary of those changes, and how they are reflected in Holistiplan, check out our article below.
2025 Legislative Tax Changes
To compare that 2025 projection under the new/current tax law representing the OBBBA changes with prior tax law, you'll first want to create a copy of that 2025 projection. To do so, click on the blue "+ Add A Scenario" button and select the copy option. You'll copy the scenario representing the 2025 projected scenario you previously created.
Once copied, you can choose from three available tax calculations:
- Current Law (OBBBA)
- TCJA With Sunset
- TCJA Without Sunset
Click on the text outlined in green as seen below to retitle the scenarios. We renamed the newly created scenarios in the example below to "2025 Baseline (TCJA)" and "2025 Baseline (OBBBA)" to reflect the two calculation methods we want to compare.
The "TCJA With Sunset" calculation reflects the TCJA tax law, with a sunset beginning with the 2026 tax year, which reflects the tax law in 2017 from tax year 2026 onward. The "TCJA Without Sunset" calculation reflects the provisions of the TCJA continuing indefinitely and not sunsetting beginning with the 2026 tax year.
NOTE: The OBBBA includes some provisions that begin with the 2025 tax year, some that do not begin until 2026, along with provisions that are temporary and permanent. A projection for the 2025 tax year will look the same under both the "TCJA With Sunset" and "TCJA Without Sunset" calculations, since the TCJA was the law of the land for 2025 in either calculation option. Differences between the two TCJA calculation options only present themselves for projections applying to tax years 2026 and beyond.
Once both scenarios are mapped out, you can use our Comparison Tool to compare the scenario using the "Current Law" calculation and either of the alternative TCJA calculations. You can read more about how to use this Comparison Tool in our article below.
Comparison Tool
In the example below, you can see the line-by-line differences of the various items. In this case, the new tax law (OBBBA) increased itemized deductions by $4,500, which resulted in a decrease of $4,500 in taxable income and a decrease in the overall federal tax bill of approximately $1,190 compared to the old tax law (TCJA).
If you have any questions, please Contact our Support Team and we will be happy to assist further!