One Big Beautiful Bill Highlights

One Big Beautiful Bill is here—and it’s packed with deduction updates that matter. Here are some of the most impactful changes to keep on your radar for 2025:

✅ New Above-the-Line Deductions:
• Up to $25,000 in cash tips *Deduction not exclusion
• Up to $25,000 in overtime pay *Deduction not exclusion
• Up to $10,000 in interest on U.S.-assembled new auto loans

• Student Loan interest deduction expanded to $5,000

✅Standard Deduction: Increased across the board $750 per filer

New senior bonus up to $12,000 (joint filers) on top of existing senior deductions.
✅ Itemized Deductions:
• SALT deduction cap raised to $40,000, with phaseouts starting at $500K MAGI
• Mortgage interest still limited to $750K of acquisition debt
• Charitable giving: Up to 60% of AGI deductible

 Non-itemizers can now deduct up to $2,000
• Medical expenses: Deductible over 7.5% of AGI for all filers
✅Child Tax Credit increased to $2,200

✅Child Savings Accounts

• $1,000 government deposit for each eligible newborn

• Private contributions up to $5,000/year

• Employers may add up to $2,500/year

Tax strategy will look different going forward. Let’s make sure we’re optimizing for these changes.

Email me to connect and explore.