07/24/2025
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, if below certain income levels (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 advisor for your specific situation.
12/03/2021