Today is April 13. Are your taxes done?

Due to the passing of the One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, there are sweeping changes, including the permanent extension of 2017 tax cuts and several new major deductions for individuals.

Key Changes include:

• Child Tax Credit was increased to $2,200
• State and Local Tax (SALT) Deduction Cap was increased from $10,000 to $40,000 for tax years 2025-2029, with phase-outs beginning for incomes above $500,000.
• Standard Deduction was permanently extended and increased to $15,750 (Single) and $31,500 (Married Filing Jointly).
• New “Bonus” Senior Deduction: Adults 65+ can claim an  additional $6,000 deduction ($12,000 if both spouses are 65+), and applies if the Modified Adjusted Gross Income (MAGI) is below $75,000 (Single) or $150,000 (Joint).
  • Full deduction applies if MAGI is below $75,000 (Single) or $150,000 (Joint).
• The 2017 Income Tax Brackets are now permanent.

The 2017 individual tax rates (10%, 12%, 22%, 24%, 32%, 35%, and 37%) are now permanent.

And here are the New Specialized Deductions:

• “No Tax on Tips”: Workers can deduct up to $25,000 of qualified tip income.
• “No Tax on Overtime”: A deduction of up to $12,500 for qualified overtime pay.
• Car Loan Interest: Deduct up to $10,000 in interest for personal vehicles assembled in the U.S.
• Trump Accounts: New tax-advantaged accounts for children born 2025–2028 receive a one-time $1,000 government deposit. 

Major Sunset Provisions (Ending in 2025):

• Electric Vehicle (EV) Credits: Tax credits for new/used EVs (up to $7,500) will sunset after Sept. 30, 2025.
• Energy Home Improvements: Credits for solar, windows, and doors (25C/25D) generally expire after December 31, 2025. 

Here are the new Retirement & Savings (2025 Limits):

• 401(k) / 403(b): Contribution limit is $23,500.
  • Catch-up (Age 50+): $7,500.
  • “Super” Catch-up (Age 60–63): $11,250.
• Traditional/Roth IRA: Contribution limit is $7,000.
  • Catch-up (Age 50+): $1,000.
• Health Savings Account (HAS) Limits: $4,300 (Self) / $8,550 (Family). 

A special thank you to Google AI for their assistance in this column. The bottom line is our bottom lines should improves with these tax changes.