Category Taxes & Tools

The “One Big Beautiful Bill Act” (OBBBA), signed into law in September 2025, brings major changes to U.S. tax rules that could have a big impact on how people manage their money. One of the biggest changes is the increase of the State and Local Tax (SALT) deduction cap from $10,000 to $40,000. This means that people who live in states with high taxes—like New York or California—can now deduct more of what they pay in state and local taxes from their federal taxes. As a result, more taxpayers may find it worth their while to itemize deductions instead of taking the standard deduction. The new law could also encourage more people to donate to charities and possibly even make buying a home more appealing, especially in pricey areas. Overall, the OBBBA could shift how Americans make big financial decisions during an uncertain time for the economy.

The "One Big Beautiful Bill," passed in 2025, brings major changes to U.S. federal tax laws that affect families, wealthy individuals, and everyday taxpayers. One of the biggest updates is the permanent increase of the federal estate tax exemption. This means that people can pass down more of their wealth to family members without paying estate taxes, giving families and advisors more stability when planning for the future. Another important change is the higher cap on the State and Local Tax (SALT) deduction, which is especially helpful for people living in high-tax states like New York and California. These updates aim to simplify long-term planning and reduce tax burdens for many Americans.

The **One Big Beautiful Bill Act (OBBBA)**, signed into law on July 4, 2025, brings major changes to the U.S. tax system. The law stops previously planned increases to federal income tax rates, providing some relief for families dealing with ongoing inflation. It also raises the standard deduction, meaning more income is tax-free for individuals and families. Additionally, it boosts the cap for state and local tax (SALT) deductions from $10,000 to $40,000. This is especially helpful for people in states with high taxes, such as California and New York. These changes happen as President Trump’s administration looks to gain voter support ahead of the 2026 election, making this tax law both an economic and political move.

In September 2025, many people started talking online about a possible new stimulus check of around $1,390 for low- and middle-income Americans. This created a lot of buzz, especially because many families are still feeling the pinch from rising prices and a shaky economy. However, the IRS has confirmed that there is no approved plan or law for new stimulus payments right now. The confusion seems to come from a proposed bill called the American Worker Rebate Act of 2025, introduced by Senator Josh Hawley. This bill is meant to help families hurt by recent tariffs put in place by the Trump administration, but it hasn’t been passed by Congress yet. So, for now, there are no new stimulus checks coming.

In 2025, the U.S. government made a big change in how it handles trade by sharply increasing tariffs—taxes on imports—especially on cars and car parts. A new 25% tariff was added to all imported vehicles, even those from neighboring countries like Mexico and Canada, which had previously been protected under trade deals like the US-Mexico-Canada Agreement (USMCA). This move disrupted long-standing supply chains that car companies rely on to make and assemble vehicles using parts from many countries. Automakers like Ford and General Motors say these tariffs could hurt the industry and raise prices for buyers. Experts estimate that because of the new tariffs, the average cost of a car in the U.S. will go up by about $4,700, making it harder for many Americans to afford a new vehicle.

Starting in 2026, many Americans could see higher health insurance costs as temporary changes to the Premium Tax Credit (PTC) expire. These credits, part of the Affordable Care Act, help people pay for health insurance by lowering monthly premiums. During the COVID-19 pandemic, the government made the credits more generous and allowed more people—even those with higher incomes—to qualify. But those improvements are set to end in late 2025, meaning fewer people will be eligible, and those who are may receive less help. Also, new rules could make it harder to sign up and keep coverage. With the cost of living already rising, these changes may hit many families hard unless Congress acts to extend or replace the current benefits.