Enacted 7/04/25
Big Beautiful Bill highlights
There is something for everyone!!!
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• CHILD TAX CREDIT…  increases from $2,000 to $2,200 per child under age 17.
• 2025-2028… NEW SENIOR DEDUCTION (age 65) of $6k per person.  Income limits apply.
• ESTATE tax exemption of $15 million is made permanent.
• PMI DEDUCTION is allowed again.
• Effective 2026… New CHARITY DEDUCTION of $1k for Single ($2k for married) even if you don’t itemize.  You still need receipts.
• 2025-2028… NO TAX ON TIPS up to $25k per person.  Income limits apply.  Applies to self-employed persons too!
• 2025-2028…NO TAX ON OVERTIME up to $12,500 per person.  Income limits apply. 
• XXX-NO TAX ON SOCIAL SECURITY???...  Sorry, this did not make it into the law.
• 2025-2028… AUTO LOAN INTEREST DEDUCTION up to $10k on purchase of brand new (not used), personal use, passenger vehicle/van/SUV/pickup truck/motorcycle.  Need final assembly in US.    Income limits apply.
• 2025-2030… SALT cap (state and local tax deduction limit) is increased from $10k to $40k.  Income limits apply.
• Effective 09/30/25… most ELECTRIC VEHICLE CREDITS expire.
• Effective 2026… HOME ENERGY CREDITS expire. (Doors, windows, insulation, water heater, AC, Furnace, etc.)
• Effective 2026… SOLAR ENERGY CREDITS expire.
• Effective 2026... BUSINESS 1099 REPORTING… increases dollar threshold from $600 to $2,000 for issuing 1099s.  
• 2025... BUSINESS 1099-K REPORTING from online platforms (Ebay, Etsy, Paypal, Square, etc.)… increases dollar threshold BACK TO THE OLD RULES.  Requires more than $20k as well as 200 transactions (need both) before they issue you a 1099.  
• Made permanent…  2018 Increased standard deductions (approximately double) and lower tax rates.  You’ve already enjoyed these tax benefits since 2018.