New Tax Bill Signed Into Law: What It Means For You
Key Tax Changes
Tax rates stay the same. The current brackets (10% to 37%) from the 2017 tax law are now permanent.
Standard deduction goes up.
Married couples: +$1,500
Heads of household: +$1,125
Single filers: +$750
New senior deduction (2025–2028).Seniors can deduct an extra $6,000. The benefit phases out:
Single: $75,000–$175,000
Married: $150,000–$250,000
Child tax credit increases to $2,200, up from $2,000.
Work & Wage Benefits
Tips deduction (2025–2028). Up to $25,000 in qualified tips is tax-deductible for both employees (W-2) and contractors (1099-K). Phases out above $150,000 ($300,000 joint).
Overtime deduction (2025–2028). Deduct up to $12,500 ($25,000 joint) for qualified overtime pay.
Other Provisions
Vehicle loan interest deduction (2025–2028). Deduct up to $10,000 in interest on loans for new U.S.-assembled vehicles.
Student loan forgiveness due to death or disability is now permanently non-taxable.
State and local tax (SALT) deduction cap rises to $40,000 (from $10,000) through 2029. It drops back to $10,000 in 2030.
Electric vehicle tax creditsend Sept. 30, 2025.
New EVs: Up to $7,500
Used EVs: Up to $4,000
Adoption tax credit expanded. Up to $5,000 of the credit is refundable for low-income families.
New Trump Accounts for kids.
$1,000 gifted at birth (2025–2028 births only)
Up to $5,000 per year in contributions allowed
Withdrawals allowed starting at age 18
Expanded 529 plan use.
New $20,000 annual withdrawal cap for K-12 tuition
Can now be used for books, tutoring, homeschool, therapies, and certificate/trade programs
Tax Law Changes Starting in 2026
Everyone can now deduct donations– even without itemizing.
Up to $1,000 for individuals
Up to $2,000 for married couples
But itemizing donations gets tougher.
You can only deduct the part of your donations that exceed 0.5% of your income.
Example: Make $200,000, donate $20,000 → only $19,000 counts.
Mortgage insurance premiums are now deductible if you itemize.
Top earners see an itemized deduction cap.
If you're in the 37% bracket, your itemized deductions can only reduce tax up to a 35% rate.
Gambling Losses
New limit: You can now only deduct 90% of your gambling losses.
Old rule: Deduct up to the amount of your winnings
New rule example: Win $10,000, lose $15,000 → you can only deduct $9,000 (not $10,000)
New Remittance Excise Tax
Sending money abroad? A new 3.5% excise tax applies to personal remittance transfers to foreign recipients.