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ONE BIG BEAUTIFUL BILL 

On July 4, 2025, Donald Trump signed into law his One Big Beautiful Bill (OBBB).  Following are some of the changes that will affect many taxpayers.  The entire bill is over 900 pages and can be read in its entirety by clicking on the following link.

SOME OBBB HIGHLIGHTS

Energy Credits

Clean energy credits including clean vehicle credits have mostly been eliminated. 

Tips/Overtime

Up to $25,000 in earnings from tips and overtime will be deductible.  This deduction expires December 2028.

Tax Cuts

Tax cuts from the 2017 Tax Cuts & Jobs Act which were set to expire this year have been permanently extended.  

SALT Deduction

State and Local Tax deduction has been increased from $10,000 to $40,000.  This deduction phases out for those with incomes exceeding $500,000, and will revert back to $10,000 in 2030. 

CHILD TAX CREDIT

Child Tax Credit has been increased from $1,000 to $2,200 with no expiration date set (it had been set to revert to $1,000 in 2025).

SENIOR CREDIT

A temporary deduction of up to $6,000 will be available to seniors 65 and older (limitations apply) This deduction will be effect for the years 2025 - 2029)

STANDARD DEDUCTION

Increase in standard deduction in 2025 to $15,000 for taxpayers filing single and married filing separately; $30,000 for taxpayers filing married filing joint and $22,500 for taxpayers filing as head of household. 

CAR LOAN INTEREST

Interest on car loans will be deductible for the years 2025-2028.  Deduction is limited to $10,000 and would phase out depending on your income and filing status.  The deductions applies only to cars assembled in the U.S.

CHARITABLE DONATIONS

Beginning in 2026, Charitable donations will be deductible to those that do not itemize.  Deduction is limited to $1,000 for single/MFS and $2,000 for MFJ.

MEDICAID WORK REQUIREMENTS

Medicaid recipients who are able-bodied and do not qualify for an exemption will be required to work 80 hours per month.  

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