On July 4, 2025, the house approved President Trump’s One Big Beautiful Bill Act (OBBBA). Most of the bill is a continuation of President Trump’s 2017 tax cuts, but there are some changes to this bill compared to the bill that was passed during his first presidency. Here are the changes, and how they will affect FPS clients.
1. Senior “Bonus” deduction
This provision of the bill allows for an additional $6,000 deduction for individual taxpayers who are 65 and older, and a $12,000 deduction for couples who file jointly and are both 65 or older. There are upper income limits for individuals who have an adjusted gross income greater than $75,000 or $150,000 (if filing jointly). This deduction is in lieu of a reduction of taxes on social security.
2. Child Tax Credit
The Child Tax Credit was increased from $2,000 to $2,200
3. State and Local Tax deductions (SALT TAX) increased
For our clients living in states with higher income taxes, the SALT tax deduction has increased to $40,000.
*We are not CPAs. FPS recommends that you talk with a CPA or trusted tax advisor about how the One Big Beautiful Bill has affected your individual situation and taxes moving forward.
The articles below provide more information on these changes:
https://www.kiplinger.com/taxes/trump-megabill-changes-for-parents
https://www.cnbc.com/guide/the-big-beautiful-bill-act-senate-republican/