|
Provision
|
Prior Law
|
“OBBB”
|
Impact
|
Eligibility
|
Effective Date(s)
|
|
Standard Deduction
|
$15,000 - single
$30,000 - married
|
$15,750 – single
$31,500 - married
|
Deduction increase of $750 pp
|
All filers
|
2025
|
|
Deductions for Seniors
|
$1600 for 65 +
|
$6,000 for 65+
Phase out after $75, 000 single, $150,000 married
|
Reduces taxable income by $4,400 more than previous year, per filer
|
65+
If married, must file jointly to qualify
|
2025-2028
|
|
No Tax on Tips & Overtime Deduction
|
N/A
|
Up to $25,000
Phase out after MAGI over $150,000
|
Reduces taxable income by varied amount
|
Applies only to specific jobs listed by IRS tbd October 2025. May not exceed net income
|
2025-2028
|
|
Child Tax Credit
|
$2000 per child
|
$2,200 per child adjusted for inflation annually
|
Makes the refundable portion of the additional child tax credit permanent
|
At least one parent and the child must have SS #s and be eligible to work in the US
|
2025
|
|
Adoption Credit
|
Up to $17,280
Not refundable
|
$5,000 of current credit made refundable. Adjusted for inflation annually.
Phase out after MAGI $259,150
|
Makes the adoption credit partially refundable
|
Child is under 18 during year of adoption or is disabled or special needs.
Qualified adoption expenses as calculated on form8839
|
2025
|
|
Estate Tax Exemption
|
$13.99 Million per individual,
$27.98 Million per married couple
|
$15 Million per individual
$30 Million per married couple
Automatic inflation indexing
|
Permanently increases lifetime exemption
|
All filers
|
Effective as of 01-01-26
|
|
Provision
|
Prior Law
|
“OBBB”
|
Impact
|
Eligibility
|
Effective Date(s)
|
|
Auto Loan Interest Deduction
|
N/A
|
Up to $10,000 deduction annually
Phase out after MAGI over $100,000 single
$200,000 married
|
Reduces taxable income by qualifying interest
|
Loan must originate after 12-31-24
Applies to NEW vehicles only
Final assembly in the US
|
2025-2028
|
|
State And Local Tax (SALT)
|
$10,000 Cap
|
$40,000 Cap 1% increase annually for inflation
Phase out after MAGI over $500,000
|
Increase of deduction cap by $30,000
|
All filers itemizing deductions
|
2025-2029
|
|
Pass Through Entity Tax (PTET)
|
Allows pass-through entities to deduct state taxes at the entity level, bypassing the $10,000 SALT cap for owners
|
Allows pass-through entities to deduct state taxes at the entity level, bypassing the $40,000 SALT cap for owners
|
Increase of deduction cap by $30,000
Overpayment can be refunded or credited on future year’s personal return
|
Partnerships and S-Corps
|
2025-2029
|
|
401K Employee Contribution Limits
|
$23,000 per employee
$7,500 additional 50+ years “catch up” contribution
$0 additional 60-63 years catch up contribution
|
$23,500 per employee
$7,500 additional 50+ years “catch up”
$11,250 additional 60-63 years catch up contribution
|
$500 increase per employee
$0 increase for 50+
$11,250 increase for 60-63 years
|
Age restrictions for catch up contributions
|
2025
|
|
Provision
|
Prior Law
|
“OBBB”
|
Impact
|
Eligibility
|
Effective Date(s)
|
|
Premium Tax Credit
(Part of the Affordable Care Act)
|
Caps premiums according to income.
Tax credit eligibility up to 400% above poverty guidelines
|
Removes the Premium Tax Credit entirely.
|
No tax credits for 1095A Marketplace health insurance. Likely, increased healthcare premiums for all insured, whether using Marketplace or privately insured.
|
N/A
|
*Jan 1st, 2026
If congress fails to pass new legislation to continue funding
|
