Overview

• The IRS and Treasury are finalizing regulations to implement the One Big Beautiful Bill ahead of the upcoming filing season.
• Standard deductions rise by $750 for singles, $1,125 for heads of household and $1,500 for joint filers while the SALT cap jumps from $10,000 to $40,000 in 2025 with 1% annual increases through 2029.
• Individuals 65 and older receive enhanced Social Security deductions totaling $23,750 for single filers and $46,700 for joint filers, with those relief measures set to expire after 2028.
• The child tax credit is made permanent with higher maximums beginning in 2026 and the alternative minimum tax exemption is extended permanently at 2018 phaseout thresholds.
• The act eliminates clean energy credits for vehicles and home installations and introduces a new auto loan interest deduction of up to $10,000 on U.S.-assembled cars through 2028.