The One Big Beautiful Bill Act: Key Tax Changes Starting 2025
Everyone- Standard deduction increases to $15,750 for single filers, and $31,500 for those filing jointly. State and local tax (SALT) deduction increases to $40,000 (temporary)
Seniors (65+) - $6,000 bonus deduction (2025-2028)
Workers- No tax on tips (up to $25,000) No tax on overtime (up to $12,500 single filer/$25,000 married filing jointly)
Business Owners- 20 percent qualified business income deduction is now permanent 100 percent capital expensing restored
Families- Child tax credit increases to $2,200 Dependent care limits increase to $7,500
Estate Management- Exemption increases to $15 million/$30 million (starts 2026) IMPORTANT: Some of these changes are temporary (2025-2028). Consult a tax professional for your specific situation.
