You make a good living, but after property taxes, state income taxes, and a high cost of living, it can feel like you’re getting squeezed from all sides. That’s why having a squeezed middle tax playbook matters, helping you understand whether new laws work for you or against you. So when a new tax law gets passed, the big question is: does it help or hurt?
On this episode of our special series of the 5-Minute PRIME Podcast, host Martin Maxwell dives deep into the “One Big Beautiful Bill Act” for the Americans right in the middle—individuals and families earning between $100,000 and $500,000 a year. This is where the new rules get complicated, and the opportunities… and traps… are significant.
Tune in to learn:
- The SALT Deduction Revolution: A deep dive into the temporary but massive increase of the State and Local Tax deduction cap to $40,000. The squeezed middle tax playbook explains if this is the game-changer homeowners in high-tax states have been waiting for.
- The Fine Print: Understanding the income phase-out and the looming threat of the Alternative Minimum Tax (AMT) that could claw back your savings. The squeezed middle tax playbook breaks it down so you don’t get caught off guard.
- Beyond SALT: How permanent changes to the tax brackets and investment provisions could impact your long-term wealth-building strategy. With the squeezed middle tax playbook, you’ll see how these changes apply directly to your income bracket.
- Strategic Tax Planning: Actionable advice on whether to itemize, how to manage your income near the phase-out cliffs, and how to navigate the new landscape like a pro. The squeezed middle tax playbook gives you the step-by-step guidance you need.
For upper-middle-income earners, this bill isn’t just a headline—it’s a strategic puzzle. That’s where the squeezed middle tax playbook becomes essential, turning complex rules into clear, actionable strategies. By following the squeezed middle tax playbook, you’ll be better prepared to adapt and thrive. Subscribe now to get your squeezed middle tax playbook for navigating the changes and maximizing your financial position.
Listen to 5-Minute PRIME podcast Now!
Play on your Favorite Podcast Platform
Show Notes: Squeezed Middle Tax Playbook
Key Takeaways
- SALT Cap Quadrupled: The “One Big Beautiful Bill Act” temporarily increases the State and Local Tax (SALT) deduction cap from $10,000 to $40,000 for tax years 2025 through 2029.
- Targeted Relief for the “Squeezed Middle”: This change is most impactful for homeowners in high-tax states with incomes between approximately $100,000 and $500,000.
- Itemizing May Be Back: The higher deduction could result in thousands of dollars in tax savings, making it worthwhile for many to itemize their deductions again instead of taking the standard deduction.
- Read the Fine Print: Be aware of two major pitfalls: the Alternative Minimum Tax (AMT), which can be triggered by the large SALT deduction, and an income phase-out that reduces the benefit for those earning over $500,000.
- Proactive Planning is Crucial: To maximize the benefit, you must be strategic. Run tax projections to avoid the AMT trap and actively manage your income (e.g., maxing out 401(k) contributions) if you are near the phase-out threshold.
Action Step:
- Run the numbers to see if you should start itemizing your deductions. Add up your total annual state and local taxes (property + state income/sales tax) and compare that figure to the standard deduction. This will give you a clear initial idea of how this law affects you.
Mentioned in This Episode
Episodes to Revisit:
Challenge for Today: Private real estate syndications
- If you’re a homeowner, pull out your property tax bill and your last state tax return. Add up your total state and local taxes for the year. How does that number compare to the standard deduction ($31,500 for a married couple or $15,750 for a single person)? This simple calculation will tell you if the new SALT deduction will be a game-changer for you.
