Lower tax rates sound great! … but what happens to the stuff that taxes pay for when we’re paying less in taxes? 

In our last blog, One Big Beautiful Bill: Its Tax Impacts and You, Riley focused on the direct tax implications from the recent budget reconciliation bill signed into law that are most likely to apply to you. Here, I’m taking a deep dive into some of the adjacent areas of your life that it may affect.

These vary from health insurance through the Affordable Care Act to other areas of taxation, like charitable contributions, green energy credits, and gambling losses. However, as the Bill is a 330-page document, I won’t be covering every nook and cranny here, either. Instead, I’ll focus on the next set of items likely to touch your life so you can plan and prepare accordingly. 

One Big Beautiful Bill: Affordable Care Act (ACA) Changes

Affordable Care Act

The O-tripple-B changed the Affordable Care Act in a couple of ways. Unfortunately, these are set to make obtaining and maintaining coverage through the ACA — and Connect for Health Colorado — more difficult. For one, current enrollees won’t be able to simply renew their coverage from year to year like they have in the past. Instead, they’ll be required to re-enroll annually. This will include sharing details on income and more — or risking losing the coverage they depend on. 

Further, it shortens the enrollment window by a month. While ACA open enrollment used to run from November 1 through January 15, it will be shortened to November 1 through December 15. Rest assured that the 2025 open enrollment dates for coverage in 2026 will still be November 1 through January 15. The date change doesn’t begin until the November 2026 open enrollment period for coverage starting in 2027.

The OBBA also doesn’t extend the enhanced advance premium tax credits, which are set to expire at the end of 2025. These tax credits made the Affordable Care Act truly affordable for those without access to employer-subsidized health insurance over the past few years. While tax credits will still be available, they won’t be as broad, meaning higher health insurance premiums for higher earners on ACA plans.

What’s more: There’s no cap on the amount that a taxpayer who received an advance premium tax credit throughout the year will have to repay at tax time if their income is higher than they expected when enrolling in an ACA plan. For the 2024 tax year, this cap was set at $3,150. Going forward, the lack of a limit will make estimating income at enrollment more difficult for those whose earnings fluctuate. It could also mean a big tax bill for those who bring in more earned income than they planned.

The Workarounds

• As you prepare to renew or change plans later this year, work with your tax advisor to estimate your 2026 income as accurately as possible.
• Check on your income throughout 2026. If it looks like it’ll be higher than you originally expected, update it in your ACA portal. This way, you’ll receive less in advance premium tax credits for each future month, thus reducing your repayment at tax time. Just be prepared for higher monthly premiums. 
• Be prepared to pay your monthly premiums in full. If your income is subject to change, set aside funds each month in a high-yield savings account in preparation for repaying the advance premium tax credit at tax time.
• Mark your calendar with the 2027 open enrollment dates now so you don’t miss the opportunity to re-enroll next year.

One Big Beautiful Bill: Tax Deduction and Credit Changes

Gambling Loss Deductions

With increases in sports betting in recent years, a change to how gambling is taxed may not come as a surprise. Interestingly enough, current gambling winnings don’t offset gambling losses in the same way that capital gains and losses net. This means that, if you win $5,000 and lose $5,000 this year, you’ll pay taxes on the $5,000 earned — and be able to deduct the entire $5,000 in losses on your taxes if you itemize your deductions. 

Under the OBBBA, much will stay the same, but gambling losses will be limited to a 90% deduction, starting in 2026. That means the same $5,000 loss will be limited to a $4,500 deduction next year — and add $500 to that gambler or sports bettor’s taxable income. The gambling loss deduction will still only come into play for those who itemize.

The WorkaroundS

• If you engage in sports betting or more traditional gambling, continue to practice good recordkeeping by maintaining receipts, statements, tickets, or other substantiating information. 
• Consider the particular impact that a loss could have on your taxes with 10% less to deduct before placing a wager in 2026 and beyond.
• When you’re deciding whether to itemize to be able to deduct gambling losses, remember that the O-tripple-B also increased the standard deduction, starting this year, to:
  • $15,750 for single tax filers
  • $23,625 for heads of households
  • $31,500 for married taxpayers filing jointly

Vehicle and Home Green Energy Tax Credits

With myriad deadlines, the OBBBA will be putting an end to multiple green energy tax credits. Here’s a timeline of what to expect:

• Credits for new and previously owned electric vehicles cease for vehicles acquired after September 30, 2025.
• Energy-efficient home improvement and residential clean energy credits will not apply to projects after December 31, 2025.
• New energy efficiency home credits come to an end on June 30, 2026.
• Wind and solar credits won’t apply to projects placed in service after December 31, 2027.

The Workarounds

• You may consider speeding up the timeline for your next electric vehicle purchase.
• If you’re building a new home or making energy-efficiency improvements to a current home, work with your contractor to understand whether their expected project deadline aligns with the credit end dates.

Charitable Contribution Floor

If you listen to public media like I do, you probably already know that President Trump clawed back $1.1 billion in previously approved funds for public broadcasting. This was part of the Recissions Act of 2025, which was signed into law just after the O-tripple-B added a 0.5% of adjusted gross income (AGI) floor to charitable contributions. Maybe you’re philanthropically inclined and planning to donate to your local National Public Radio or Public Broadcasting Service station to fund their work after the Corporation for Public Broadcasting’s funding was pulled. Perhaps you’re hoping for a win-win situation on donating to your favorite charity. However you plan to give, what does this mean for you?

You’ll only be able to deduct the portion of your charitable contribution to an IRS-recognized tax-exempt organization that exceeds 0.5% of your adjusted gross income (AGI). For example, if your household’s AGI is $300,000, you won’t be able to deduct the first $1,500 in charitable contributions that you make, starting in 2026. 

The Workarounds

• Consider making a larger charitable contribution in 2025 before the 0.5% floor on charitable contributions begins in 2026.
• Work with your tax professional to understand your AGI and how the floor will impact the deductibility of your charitable contributions in 2026 and beyond.
• Plan to group or “bunch” donations in future years for a higher deduction.
• Look to lower-income years to make larger charitable contributions. 

Have you heard about a piece of the OBBBA legislation in the news that could affect you? Reach out with your questions, and we might even cover your concern in a future blog (and partner podcast!). And remember, if you’re a current FPFoCo client, we’re already considering how these changes could affect you this year and in the future.