In this video, Kevin Gormley, CFP®, CPA, PFS from Leading Edge Financial Planning breaks down how the new tax bill may impact pilots at every career stage. Newer first officers may benefit from enhanced child tax credits and expanded state and local tax (SALT) deductions. Captains, particularly those in high-tax states—could see significant advantages, including a $40,000 SALT deduction cap and a 37% top tax bracket, though phase-outs may impact them as well. The bill also includes a $6,000 standard deduction bonus for those over 65 and a $2,200 child tax credit.
That said, Senior Captains may be impacted by phase-outs at higher income levels, limiting these benefits. Kevin emphasizes: smart tax planning is key to maximizing what’s available.
Key topics covered include:
- Impact of the New Tax Bill on Pilots
- Overview of Tax Provisions for Pilots and Business Owners
- Detailed Analysis of Other Tax Provisions in the One Big Beautiful Bill
- Impact of Phase-Outs on High-Income Earners
- Potential Changes to 529s and What is Considered Higher Education Expenses (e.g., Flight School)
- Standard Deduction Increase, Charitable Deductions and Other Tax Provisions
- Impact of Tax Provisions on Different Income Levels
Actionable takeaways:
- Conduct a projection for this year’s taxes to determine how the new tax changes may impact you.
- Consider options for strategies that may help maximize tax savings, such as the use of 529 plans.
- Research the specifics of the mortgage interest deduction and home equity line of credit interest deduction, which may affect your situation.
- Educate yourself on the potential benefits and limitations that may arise from the new tax changes, especially the SALT deduction phase-out for higher-income captains.
- Gain clarity and control over your tax strategy and keep more of what you earn while staying compliant with evolving tax laws.
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this video will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for your portfolio. Moreover, you should not assume that any information or any corresponding discussions serves as the receipt of, or as a substitute for, personalized investment advice from Leading Edge Financial Planning personnel. The opinions expressed are those of Leading Edge Financial Planning and are subject to change at any time due to the changes in market or economic conditions.
