Category Taxes & Tools

President Trump’s "One Big Beautiful Bill," passed in 2025, brings big changes to the U.S. tax system, especially for upper-middle-class families and business owners. One of the major updates is a boost to the standard deduction and the child tax credit, which means many families will get to keep more of their money. However, the cap on State and Local Tax (SALT) deductions stays the same, which still limits benefits for people living in high-tax states like California and New York. Business owners and high-earning professionals, like doctors, are urged to take advantage of the higher Section 179 expensing limits. This lets them deduct more money upfront for things like equipment and upgrades, helping lower their taxes. Experts say planning ahead is key to making the most of these new tax rules.

In August 2025, the U.S. government passed a major law called the "One Big Beautiful Bill" (OB3), bringing big changes to how taxes work and how certain financial programs affect people’s everyday lives. This new law changes rules around Social Security, overtime pay, student loans, car loan interest, and 529 education savings plans, which are used to help pay for college. The bill comes at a time when many Americans are struggling with high prices and job uncertainty. Experts say people should pay close attention, because these changes might impact how much money they take home in their paychecks and how they should plan for things like retirement and education costs in the future.

In July 2025, President Trump signed a major tax law called the “One Big Beautiful Bill” Act, which made big changes to how Americans pay taxes. The law raised the standard deduction — the amount of income that isn’t taxed — to $15,750 for single filers, $23,625 for heads of household, and $31,500 for married couples filing together. These numbers will go up each year to keep up with inflation. The act also introduced a new temporary tax break for seniors: people 65 and older can now deduct an extra $6,000, or $12,000 for couples, if their income is under a certain limit. This new plan replaced a previous idea to stop taxing Social Security income. These changes are aimed at helping families and seniors deal with higher living costs and financial stress.

The "One Big Beautiful Bill Act" (OBBB), signed into law on July 4, 2025, brings major changes to how taxes and government benefits work in the U.S. It keeps the corporate tax rate at a flat 21% and sets permanent income tax rates for individuals, topping out at 37%. However, only the lower-income tax brackets will be adjusted for inflation in the future. This means that as people earn more over time due to inflation, those in higher brackets may end up paying more in taxes—a situation known as "fiscal drag." The law also affects estate planning and expands some tax credits, aiming to stabilize the economy during uncertain times.

The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, brings major changes to the U.S. tax system, especially benefiting middle- and lower-income workers. The new law allows people who earn extra money through overtime or tips to save up to $25,000 a year in federal taxes—without having to file detailed deductions. In addition to this tax break, the bill also makes some tax cuts from a past law permanent, lowers income taxes overall, increases deductions for seniors, and raises the amount of money that can be passed down without paying estate taxes. This tax reform is designed to help working families keep more of their hard-earned money.

On July 4, 2025, President Donald Trump signed the “One Big Beautiful Bill Act” (OBBBA) into law, making big and lasting changes to the U.S. tax system. This new law makes the lower income tax rates from the 2017 Tax Cuts and Jobs Act permanent, preventing them from increasing in 2026 as originally planned. This mostly helps high-income earners, who were at risk of paying higher taxes. The bill also extends the adjustment for inflation on the lower tax brackets (10% and 12%) for another year, giving people more time to plan their finances. Overall, OBBBA brings more stability and predictability to taxes for both individuals and businesses.