Big Beautiful Bill Results
Most of the changes for taxation take place 1 January 2026. The Bill also includes some very popular changes, here are just a few of them for your reference.
Senior Discount will add a deduction of $6,000 for each qualifying individual.
The increased SALT (State and Local Tax deduction) Is $40,000.
Standard Deduction is increased as follows:
$31,500 for married filing jointly filers. $23,625 for Head of Household., and $15,740 for all other filers.
No taxes on tips allows $25,000 tip income to be deductible.
No taxes on overtime. Makes up to $12,500 or $25,000 joint filers deductible.
Various Clean Energy Incentives. I think that the Sec.30D clean vehicle credit terminates for vehicles acquired after 20 Sept 2025.
Interest on vehicle loans are deductible up to $10,000.
Expensing certain business assets. The maximum a taxpayer may elect using the section 179 is $1,000,000. A $2,500,000 limit for this which if you go over that limit.
Other law changes include changes to section 529 plans for qualified Tuition Programs.
Partially refundable adoption credit.
Trump Savings Accounts for children
Changes to AMT. Thresholds reverted to 2018 levels.
Estate and lifetime gift tax exception to $15,000,000 for singed filers, and $30,000,000 beginning in 2026.
A permanent $1,000 "above the line" charitable donations. The above the line deduction is important and you can find out why from this Forbes article:
Here’s Why Above-The-Line Deductions Are So Valuable – Forbes Advisor
There are quite a few other changes to the tax laws, if you have specific questions, Please give me a call.
Aloha David Acosta
Tax Topics
There are a variety of Tax Topics that I will add here. Aloha.
