One Big Beautiful Bill Act (OBBBA) was signed into law on July 4, 2025, and enacts broad changes across taxes, Medicare, Medicaid, energy, immigration, and defense. Lower tax rates from the 2017 Tax Cuts and Jobs Act, including QBI and the estate tax exemption, are now permanent. The standard deduction rises in 2025 to $31,500 (joint), $23,625 (head of household), and $15,750 (single), indexed for inflation. Charitable rules change in 2026 with non-itemizer cash deductions of $2,000/$1,000 and itemizer limits at gifts over 0.5% of AGI. The estate exemption increases to $15 million per person in 2026, indexed. The child tax credit becomes $2,200 in 2025 with existing phaseouts. Several clean energy incentives are reduced; the $7,500 electric vehicle credit ends for cars bought after Sep.
The One Big Beautiful Bill Act (OBBBA)-yes, that's really what it's called-was signed into law on July 4, 2025, and it's packed with changes. We're talking permanent tax cuts, updates to Medicare and Medicaid, energy policy overhauls, even changes to immigration and defense spending. It's a lot. Rather than try to unpack all several-hundred pages of it, we've pulled out the most relevant highlights, especially the tax changes that could affect your planning.
A Quick Look at What's Changing 1. Tax cuts that stick aroundThe lower tax rates from the 2017 Tax Cuts and Jobs Act are now permanent. That includes the Qualified Business Income (QBI) deduction and the current estate tax exemption-so no looming expiration dates to stress about. Of course, "permanent" really just means Congress didn't give it an end date; they can still change things down the road.
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