This past summer, Congress passed the “One Big Beautiful Bill” (OBBB). The main thing this bill accomplished was to make permanent the temporary tax reductions passed in 2017, during Trump’s first term. Some new provisions are also included in the OBBB: In the previous tax bill, the state and local tax (SALT) deduction was limited to $10,000. This was very unpopular with people who live in high tax states. In the new law, the limit was raised to $40,000. This will be a major tax benefit for our community as the $10,000 limit adversely affected most taxpayers who itemized deductions. Note: For high earners, the limit remains at $10,000.

A big change is that people aged 65 and over will receive an extra deduction of $6,000 per person. And if you bought an American-made new car in 2025, you can deduct up to $10,000 of interest. (Will that encourage people to buy new cars instead of used cars?) In addition, each child under 17 gets a tax credit of $2,200. That is an increase from $2,000. Even those with no tax liability could get a refund of $1,700 per child! Do the math; it really adds up for large families. Obviously, you had better read the fine print to see what qualifies for favorable tax treatment.

A few weeks ago, the podcast “Living L’Chaim” interviewed a rabbi from Lakewood who was lamenting materialism. He said that he once gave some teenagers a ride to the airport for winter break and overheard one tell the other, “Going to Florida is really dumb but you can’t stay in Lakewood for winter vacation.”

It is well known that winter break has turned into head-to-Florida season. Now I am sure that going to Florida can make sense and be a good choice in some instances. But whenever I sense that something is becoming a fad, I become a little skeptical. One thing is for sure: Whether summer, spring, fall, or winter, if you are heading to the theme parks, you will be paying a lot for a man-made attraction.

When I meet youngsters heading off to school in Israel, I give them a bracha: “May you be hungry and lost and in desperate need of an invite, and may this suffering last for a full five minutes, and may someone then come along and invite you.” During those precious minutes, this young person will learn a valuable lesson. He or she will learn what it feels like to be in need, something that those born with a silver spoon in their mouth might not be aware of. Those few minutes can lead them to an amazing resolve in life.

I want to propose a new chesed program. Baltimore is known as a city with a multitude of chesed organizations, yet there is one profound mitzvah that is being overlooked in our community. Especially now, when we are going through the current war in Israel, we are all aware that chesed and Jewish unity will carry the day.

As we approach the end of the year, we should be thinking of income tax planning.

1) Itemizing: Typically, people with a mortgage can itemize. This is because the standard deduction has risen to approximately $28,000. For those who do not itemize, consider giving double charity every other year, a strategy known as “bunching.” In Maryland, it can be very beneficial to itemize.

2) Medical: Medical expenses must exceed 7.5% of your income before they start to be deductible. Consider a FSA or HSA. These are medical savings accounts that create a tax deduction.

3) Childcare tax credit: Up to 28% of $6,000 is allowed for preschool and day camps up to age 12, a savings of $1,680. You need to list the caregiver’s name, address, and ID number. 

4) Children: Every child under 17 is worth a tax credit of $2,000. Age 17 and over are only worth $500. Once a child turns 19, they typically have to be a student to be claimed.

This year, a Pesach hotel program collapsed shortly before the holiday, causing countless problems for guests and a tremendous loss of money. The reason given was a fake email from the hotel to the kosher syndicator that provided a false bank account number to wire the money to. It’s pretty surprising that a sophisticated businessman would wire hundreds of thousands of dollars to an unconfirmed bank account. But that’s how scams work – through trickery and deception.

I am sure you are all aware that scams have been increasing. The title of this article is perhaps misleading as scams are getting more sophisticated, and not only the elderly are falling for them. For example, yesterday I received a phone call from a well-known New York yeshiva. I gave the lady my credit card number to make a donation. Was that safe? She sounded frum, so I did it. All ages should pay attention, but the elderly remain prime targets.

As an accountant, I talk to a lot of people about their finances and the difficulty of covering their expenses, and I am often asked about what is the best way to obtain a car: new, used, or leased?

Cars are, without question, the most expensive consumer item – not counting houses and tuition, that is. Clearly, the smoothest way to buy a car is to buy one brand new. There is no worry about who owned it before or if it has problems that were covered up. It will certainly drive nicely (and have that new car smell). The only downside is that it is the most expensive option. Therefore, if one is trying to save money, he or she will buy a used car. You see, many people keep cars for three to ten years and then sell them, often back to the dealer in the form of a trade-in. The dealer then resells that car – hence, the enormous business of selling used cars. Here is how it works: The original owner trades in a car to a new car dealer. That means the car owner is selling the car to the dealer for, say, $5,000. The dealer then resells the car to a used car buyer for $10,000. In this example, $5,000 is the wholesale price, and $10,000 is the retail price.