🚨 Big Changes: New Tax Law Signed in July 2025
On July 4, 2025, the U.S. government signed the One Big Beautiful Bill Act (OBBBA) into law—a sweeping reform affecting individuals, families, small businesses, and investors nationwide.
Whether you’re a taxpayer, retiree, business owner, or estate planner, these changes will impact how you file and plan starting this year.
✅ Key Tax Changes You Need to Know
💰 Permanent Tax Cuts
- The Tax Cuts and Jobs Act (TCJA) income tax brackets are now permanent.
- The top income tax rate stays at 37%, and standard deduction adjustments remain indexed.
🏡 SALT Deduction Increased Temporarily
- New SALT (State and Local Tax) cap: $40,000 (2025–2029).
- After 2029, it reverts to $10,000.
👪 Support for Families and Seniors
- Child Tax Credit raised to $2,200, with up to $1,400 refundable.
- $6,000 extra deduction for taxpayers over 65 (phased out above certain incomes).
- New deductions through 2028:
- Up to $25,000 for reported tips
- Up to $12,500 for overtime
- Up to $10,000 for U.S.-assembled auto loan interest
💼 Small Business & Investments
- 20% QBI Deduction for pass-through entities is now permanent.
- QSBS (Qualified Small Business Stock) gets expanded:
- Higher exclusion caps ($15M per issuer)
- Retains 50%/75%/100% tiering by holding period
- Bonus depreciation & Section 179 full expensing returns in 2025.
🌱 Clean Energy & Charitable Tax Breaks
- Many IRA clean energy credits phased out (solar, EV, etc.).
- 100% charitable tax credit allowed for donations to private school voucher programs.
🏛 Estate & Gift Tax Planning
- Estate & gift exemption rises to $15 million per person.
- Itemized deduction limit (Pease rule) softened for high earners.
🌍 Remittance Tax & Global Compliance
- 1% excise tax on remittance transfers starts in 2026.
- Crypto & offshore assets face heightened reporting scrutiny.