What the Big Beautiful Bill means for Individual Taxpayers

✨ What’s Changing

• Tax Rates Stay Low: 2017 brackets are now permanent.

• New Temporary Deductions (2025–2028):

• Overtime Pay: Up to $12,500 ($25k joint); phases out above $150k/$300k MAGI.

• Auto Loan Interest: Up to $10,000; phases out above $100k/$200k MAGI.

• Senior Deduction (65+): Extra $6,000 ($12k joint); phases out above $75k/$150k MAGI.

• Child Tax Credit: $2,200 per child, refundable up to $1,700. Phases out above $200k/$400k MAGI.

• SALT Deduction: Cap raised to $40,000 ($20k MFS). Phases out starting at $500k MAGI, down to $10k by $600k+.

• Green Incentives Ending:

• EV credit ends Sept. 30, 2025.

• Home energy credits end Dec. 31, 2025.

👉 Action Steps

• Act Quickly: Buy an EV by Sept. 30, 2025; complete home upgrades by Dec. 31, 2025.

• Plan SALT Deductions: If under $500k MAGI, you may deduct much more than before.

• Families: Confirm CTC eligibility to capture the full $2,200 per child.

✅ Bottom Line

The Big Beautiful Bill brings stable rates, bigger deductions, and a higher Child Tax Credit—but many benefits are income-limited and time-sensitive. 2025 is the year to act.

Want to know how these changes will help you for your 2025 tax filing? Want to learn how to take advantage of reducing your income to qualify for the credits and deductions? Contact us to set up a tax planning meeting now!