Category Taxes & Tools

On July 4, 2025, the U.S. government passed a major tax reform law called the *One Big Beautiful Bill Act* (OBBBA). This new law changes many parts of the federal tax system and aims to make earlier tax cuts permanent. It keeps the current income tax brackets the same for most people and continues the higher exemption amounts for the Alternative Minimum Tax (AMT), which helps some taxpayers avoid extra taxes. For the 2025 tax year, the standard deduction—the amount of income that isn't taxed—goes up to $15,750 for single filers and $31,500 for couples filing jointly. These amounts will also be adjusted each year for inflation. The OBBBA is one of the biggest tax changes since 2017 and will affect how millions of Americans file their taxes.

In July 2025, the U.S. government passed a major tax reform law called the One Big Beautiful Bill Act (OBBBA), which brought sweeping changes to the way Americans file and benefit from taxes. This new law preserves key parts of the 2017 Tax Cuts and Jobs Act, like lower income tax rates and a higher standard deduction, making them permanent. It also adds several new tax benefits aimed at helping working families and seniors. For the first time, people can now deduct tips, overtime pay, and car loan interest from their taxes. Seniors aged 65 and up can take a $6,000 deduction, even if they don’t itemize their taxes. These changes are designed to put more money back in people’s pockets and reshape how tax policy supports everyday Americans.

The One Big, Beautiful Bill (OBBB) Act, signed into law in July 2025, brings major changes to how Americans handle their taxes and plan for retirement. One of the biggest updates is the increase in the standard deduction, which lowers the amount of income people are taxed on. This benefits single filers, heads of household, and married couples. Seniors aged 65 and older also get a special $6,000 deduction until 2028, giving them a helpful tax break during retirement. The law also relaxes the limit on the state and local tax (SALT) deduction, allowing more people to claim these expenses on their federal taxes. These changes come at a time when many Americans are stressed by higher prices, slow job growth, and uncertainty about their financial futures.

On July 4, 2025, the U.S. government passed a major tax law called the One Big Beautiful Bill Act (OBBBA). This law makes permanent many of the tax cuts from the 2017 Tax Cuts and Jobs Act. One big change is that the top federal income tax rate will stay at 37%, instead of going back up to 39.6% in 2026 like it was supposed to. The law also raises the Alternative Minimum Tax (AMT) exemption, which means fewer people will have to pay that extra tax. Standard deductions have gone up, too—single filers can now deduct $15,750 and married couples can deduct $31,500, with these amounts increasing with inflation. These changes are expected to affect how Americans file taxes and may also impact global financial policies.

In July 2025, former President Donald Trump signed a new law called the “One Big Beautiful Bill” that brings major tax breaks for senior citizens. This bill gives people aged 65 and older an extra $6,000 tax deduction each year from 2025 to 2028. For married couples where both people are seniors, the deduction doubles to $12,000. On top of that, nearly all Social Security benefits will no longer be taxed at the federal level, which means most seniors will owe less money to the IRS. While the new law is expected to help older adults deal with high living costs, some worry that it could hurt state budgets by reducing the amount of money states receive in taxes.

The “One Big Beautiful Bill” Act, signed into law on July 4, 2025, is one of the biggest changes to U.S. tax laws in years. It keeps many of the tax cuts first introduced in 2017 and adds new updates to help American families. One major change is that federal income tax rates will stay lower for everyone. For example, people earning more than $751,600 (if married) or $626,350 (if single) will be taxed at the highest rate of 37%. The standard deduction, which helps reduce how much of your income is taxed, also goes up to $31,500 for married couples and $15,750 for single filers in 2025. These updates aim to provide financial relief for middle-class families, especially during times of high prices and economic uncertainty.