With just days left in the year, tax policy is shifting from debate to implementation. Federal agencies are rolling out guidance tied to the One Big Beautiful Bill Act, lawmakers are openly rethinking how health coverage subsidies should work in 2026, and the real-world consequences of tariff policy are becoming increasingly visible—not just in the U.S., but globally.
For advisors, this week marks a transition point: clients are no longer asking what might change, but what already applies to their 2025 returns and 2026 planning.
Here’s what matters this week:
- IRS releases long-awaited details on expanded HSA eligibility
- New guidance clarifies how major 2025 tax changes will work in practice
- Trump tariffs show growing global and domestic economic impact
- Advisors begin preparing clients for a more complex filing season
Let’s take a closer look.
1. IRS Releases HSA Expansion Details Under Trump’s “Big Beautiful Bill”
The Treasury Department and IRS released long-awaited guidance expanding Health Savings Account (HSA) eligibility under the One Big Beautiful Bill Act—significantly broadening access beginning in 2026.
What’s new under the guidance:
- Bronze and catastrophic health plans will qualify as HSA-compatible starting in 2026
- Telehealth safe harbor rules are now permanent, retroactive to January 1, 2025
- Certain direct primary care (DPC) arrangements will no longer block HSA eligibility
- HSAs may be used to pay eligible DPC fees
The guidance arrives amid continued uncertainty around enhanced ACA subsidies, which are scheduled to expire after 2025 unless Congress intervenes. A GOP proposal released this week would allow subsidies to lapse while redirecting funds into HSAs.
Why it matters for advisors:
Expanded HSA eligibility strengthens HSAs as a long-term tax-advantaged planning tool—especially for clients facing rising premiums or subsidy changes in 2026.
2. What to Know Now About Filing 2025 Taxes Under the One Big Beautiful Bill Act
CNN published a comprehensive breakdown of how OBBBA will affect 2025 tax returns, highlighting just how different the upcoming filing season will be.
Notable provisions now in effect:
- Higher standard deduction: $15,750 (single), $31,500 (joint)
- New senior deduction: $6,000 per qualifying taxpayer, subject to income limits
- Expanded SALT deduction: cap raised to $40,000
- New deductions (not exclusions) for tips, overtime pay, and car loan interest
- Higher child tax credit: $2,200 per qualifying child
- Early expiration of EV credits for vehicles purchased after Sept. 30, 2025
- Trump Accounts with federal seed funding for qualifying newborns
- New crypto reporting via Form 1099-DA
Several provisions require new IRS forms, including Schedule 1-A and Form 4547.
Why it matters for advisors:
Many taxpayers may misunderstand how these provisions work based on political messaging. Advisors will need to guide clients through eligibility thresholds, documentation requirements, and new forms.
3. Trump’s Tariffs Are Reshaping the Global Economy — Not Just U.S. Prices
New CNN analysis shows that Trump’s tariff policies are now contributing to measurable economic strain across multiple U.S. trading partners.
Examples highlighted include:
- Switzerland: GDP contraction tied to reduced pharmaceutical exports
- Japan: economic shrinkage driven by falling exports and investment
- Mexico: slower growth amid trade uncertainty
- Canada: manufacturing job losses linked to U.S. tariffs
- Brazil: steep declines in coffee exports during peak tariff periods
These global disruptions are feeding back into supply chains and long-term pricing dynamics affecting U.S. businesses and consumers.
Why it matters for advisors:
Clients with international exposure may face increased volatility in costs, earnings, and investment decisions heading into 2026.
4. Markets Balance AI Optimism, Slowing Jobs, and 2026 Fiscal Stimulus
Despite tariff headwinds and softening labor data, broader economic indicators remain mixed.
Highlights include:
- Unemployment has risen modestly but remains historically low
- Consumer confidence is weak, yet spending has largely held up
- Corporate profits continue to grow year over year
- Capital spending—particularly tied to AI infrastructure—remains strong
- Significant fiscal stimulus from OBBBA is expected to arrive in early 2026 via larger tax refunds
Markets appear to be pricing in slower growth rather than an imminent recession.
Why it matters for advisors:
Clients may feel economic anxiety despite relatively strong fundamentals. Advisors can help reframe short-term concerns within longer-term planning strategies.
Your Takeaway This Week
As 2025 comes to a close, tax policy is moving quickly from theory to reality:
- Expanded HSAs reshape healthcare planning
- New deductions complicate individual tax returns
- Tariffs continue to pressure prices and global trade
- Filing-season preparation is more important than ever
For advisors, the final weeks of the year present an opportunity to reset expectations, review documentation needs, and proactively guide clients into a more complex 2026 tax environment.
Harness supports advisors navigating these transitions—helping translate policy changes into clear, actionable guidance.
Need support heading into filing season?
Schedule an introduction today.
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