Trump just signed the One Big Beautiful Bill Act, enacted on July 4, 2025. Here is your quick guide to the changes and updates:

[1] Tax Brackets Stay Low

Tax rates were set to adjust to:

• 12% => 15%
• 22% => 25%
• 24% => 28%
• 32% => 33%
• 37% => 39.6%

This Bill keeps rates locked in at the lower rates, permanently.

[2] Higher Standard Deduction

The 2025 baseline:

• $15,750 (for Single filers)
• $23,625 (for Head of Household)
• $31,500 (for Married filers)

And it adjusts annually with inflation.

[3] New $6,000 Deduction for Seniors

• For Individuals 65+ years old
• Phases out after $75k income
• Phases out after $150k for Joint Filers

Effective January 1, 2025 – December 31, 2028.

[4] Bigger Child Tax Credit

• Goes from $2,000 => $2,200
• Adjusted for cost-of-living in 2026
• Permanently locked in at higher rate

[5] Business Owners Get a Win

QBI Deduction (Section 199A) is permanent.

SSTB phaseouts increase to $75k (for single filers) and $150k (for married filers).

New $400 minimum deduction from 2026.

[6] SALT Deduction Raised

$40k limit in 2025.

$40,400 in 2026 => Increases 1% annually until 2030.

Reverts to $10k in 2030.

Applies if income is under $500k.

[7] Tips are Tax-Free (sort of)

Deduct up to $25k in tips (2025-2028).

Phases out after $150k income (for single filers) and $300k (for married filers).

Works even with standard deduction.

[8] Overtime Deduction

Deduct $12,500 (for single filers) or $25,000 (for married filers).

Applies 2025-2028.

Phases out after $150k (for single filers) and $300k (for married filders).

[9] Deduct Your Car Loan Interest

Up to $10k from 2025-2028.

Car must be assembled in the US.

Deduction reduced after income of $100k (for single filers) and $200k (for married filers).

[10] New “Trump Account” for Minors

• $5,000/year contribution cap
• No withdrawals before 18
• Not deductible, but grows tax-free

[11] Better Dependent Care Breaks

• FSA cap increases: $5k => $7,500
• Expense % goes from 35% => 50%
• Starts in 2026 tax year

[12] 529 Plan Expansion

Now includes elementary and secondary school costs.

Books and tuition count.

Starts 2026.

[13] More Charitable Power

Deduct $1,000 (for single filers) and $2,000 (for married filers)

Even if you don’t itemize.

Gives average families more giving power.

[14] 1099K Threshold Rolled Back

No more $600 limit.

Reverts to $20k and 200 transactions.

Good news for freelancers on PayPal, Venmo, eBay, Amazon, etc.

[15] Green Energy Credits Ending

EV tax credits end September 20, 2025.

Energy-efficient home improvement and solar ends December 31, 2025.

Use them before the clock runs out.

[16] Business & Estate Breaks

Bonus depreciation = 100% from January 19, 2025.

Section 179 expensing up to $2.5 million.

Estate exemption is $15 million beginning 2026 and will adjust with inflation.

Biggest wins go to owners and heirs who act fast.