Investment Taxes Under the One Big Beautiful Bill Act
Different types of investment income can move you toward or over the various MAGI thresholds and affect your eligibility for OBBBA tax breaks.
Overview of how investment income affects MAGI thresholds and eligibility for OBBBA tax breaks
Key income limits for capital gains, dividends, deductions, surtaxes, and state and local tax benefits
Guidance on optimizing for taxes without harming your portfolio strategy
The new and enhanced tax breaks introduced by the One Big Beautiful Bill Act (OBBBA) could be impacted by taxable income you realize from your portfolio. Most of the new breaks have thresholds based on modified adjusted gross income (MAGI). Adjusted gross income (AGI), which is the basis for MAGI, includes capital gains, taxable dividend income, taxable interest income and taxable retirement distributions.
This month, we show you how to understand the way portfolio decisions affect your eligibility for OBBBA tax breaks. Specifically, we discuss the different types of investment income that can move you toward or over the various MAGI thresholds.
