Category Taxes & Tools

In 2025, many Americans with student loan debt are getting a big break—any student loans that are forgiven by the end of the year won’t be taxed by the federal government. This temporary benefit comes from a rule in the American Rescue Plan Act of 2021. Normally, if your student loans are forgiven, that amount is considered taxable income, meaning you could owe thousands of dollars in taxes. But for now, people in federal programs like Income-Contingent Repayment (ICR) and Pay As You Earn (PAYE) won’t have to worry about that. While this offers some peace of mind, it’s not clear what will happen after 2025, so the future of this tax relief is still uncertain.

In October 2025, the U.S. government passed a major law called the “One Big Beautiful Bill” (OBBB), which brought big changes to the nation’s tax and financial systems. This law makes permanent many tax cuts from 2017 and adds new rules to help boost the economy and control government spending during a time of rising global inflation and economic uncertainty. The bill also includes changes to social support programs and education funding to help families and students. As countries around the world struggle with the economic effects of the pandemic and global conflicts, this law aims to give both citizens and businesses more stability and support.

The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, brings big changes to how Americans handle their taxes. This new law keeps in place many of the tax cuts first set up by the 2017 Tax Cuts and Jobs Act, which were about to expire. That means most people won’t have to worry about their income tax rates going up soon. One major change is the increase in the state and local tax (SALT) deduction cap—from $10,000 up to $40,000. That means people can now deduct more of their property and local taxes from their federal taxes, although higher earners may not get the full benefit. Overall, this law helps many taxpayers keep more of their money and adds some predictability for the coming years.

On July 4, 2025, President Trump signed a major new tax law called the “One Big, Beautiful Bill Act,” which changes how taxes work in the U.S. for good. This new law makes the tax cuts from the 2017 Tax Cuts and Jobs Act permanent. Before this law passed, those cuts were set to expire at the end of 2025, meaning people and businesses would have paid more in taxes. Now, the top income tax rate will stay at 37% instead of rising to 39.6%, which had been expected. This means families and companies can plan their finances with more certainty for the future.

On July 4, 2025, a major tax reform law called the “One Big, Beautiful Bill Act” was signed by President Trump. This new law aims to reshape how Americans are taxed, bringing lasting changes to income, estate, and business taxes. One of the key parts of the bill is the permanent extension of lower individual income tax rates, keeping the highest tax bracket at 37% instead of allowing it to increase. The bill also addresses concerns about expiring tax breaks from an earlier tax law passed in 2017, offering more financial certainty for families, business owners, and people planning their estates. Although the bill was controversial due to its large cost and impact on programs like Medicaid, supporters say it simplifies the tax system and helps boost economic growth.

In July 2025, President Trump signed the "One Big Beautiful Bill Act," which made a big change to how much state and local taxes (called SALT) people can deduct on their federal tax returns. From 2025 to 2029, the cap on SALT deductions went up from $10,000 to $40,000 for people making less than $500,000 a year. This is especially helpful for taxpayers in high-tax states like New York and California, who often pay more in state and local taxes. However, the issue remains controversial, with some lawmakers arguing this mainly benefits wealthier Americans and makes the tax system less fair. The cap is set to drop back to $10,000 in 2030 unless new laws are passed.