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🌟 What is the One Big Beautiful Bill Act and what does it mean for me?✨

Key Tax Savings from the One Big Beautiful Bill Act:

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Permanent Tax Savings:

*Individual Tax Rates: The 2017 Tax Cuts and Jobs Act (TCJA) tax brackets, with a top rate of 37% and a bottom rate of 10%, are now permanent for individuals and families.

*Standard Deduction: The higher standard deduction is now permanent and will increase to $15,750 for single filers and $31,500 for joint filers, indexed for inflation after 2025.

*Child Tax Credit: The Child Tax Credit is permanently increased to $2,200 per child starting in 2025, up from $2,000.

*Estate & Gift Tax Exemption: The lifetime gift and estate tax exclusion rises to $15 million for single filers and $30 million for married couples, indexed for inflation.

*SALT Deduction: The State and Local Tax (SALT) deduction cap increases to $40,000 through 2029 for most filers, then reverts to $10,000 in 2030 and beyond.

*Mortgage Interest Deduction: Remains capped at $750,000 in mortgage debt ($375,000 for single filers).

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Temporary Tax Breaks (2025–2028):

**No Taxes on Tips or Overtime: Deduct up to $25,000 in tips and $12,500 in overtime income ($25,000 for joint filers). Deduction phases out for higher incomes.

**Senior Deduction: Additional $6,000 deduction for taxpayers age 65+, phasing out at $75,000 for singles and $150,000 for joint filers. This is on top of the existing senior deduction.

**Car Loan Interest: Deduct up to $10,000 in interest on U.S.-assembled vehicle loans for singles earning up to $100,000 ($200,000 for joint filers).

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New Savings Opportunities

***Trump Account: A new savings account for children, up to $5,000/year in contributions. Newborns (2025–2028) get $1,000 in federal seed money. Converts to a traditional IRA at age 18.

***Expanded HSA & 529 Uses: More health plans and participants can use HSAs; 529 funds now cover more educational expenses, including testing fees and tutoring.

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Additional Notes:

****No Change to Social Security Taxation: Social Security benefits remain taxable for higher-income recipients, but the new senior deduction may offset some of this for the next four years.

****Many Provisions Are Indexed for Inflation: Standard deduction, estate/gift tax exemption, and Child Tax Credit will rise with inflation after 2025

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What is the One Big Beautiful Bill Act and what does it mean for me? | Fidelity President Trump hopes to preserve his signature 2017 Tax Cuts and Jobs Act (TCJA) in a bill called One Big Beautiful Bill Act (OBBA). Here's what else is in it and what you need to know.