The One Big, Beautiful Bill Act: Changes for Indivdual Taxpayers
On May 22, 2025, the House passed the “One Big, Beautiful Bill” and it is making significant changes to U.S. tax policy. If you’re wondering how these changes will affect you, here are some of the most impactful changes that will affect your individual return if the One Big, Beautiful Bill becomes law.
Federal Tax Rates for Individual Taxpayers
Federal Tax Rates for Married Taxpayers
Personal Exemptions
If the One Big, Beautiful Bill does not pass, personal exemptions will return in 2026.
If the One Big, Beautiful Bill passes, personal exemptions will be permanently repealed.
The Standard Deduction
Additional Standard Deduction for Seniors
The One Big, Beautiful Bill includes a new, additional standard deduction of $4,000 available to taxpayers over the age of 65 for three years, from 2025-2028.
This additional standard deduction is $4,000 per individual and begins a 4% phase out at $75,000 for single taxpayers and $150,000 for married taxpayers. This means that for every dollar over the phase out amount, the amount of the deduction is reduced by 4 cents (or 4% of a dollar) until it is reduced to zero.
The Child Tax Credit
Additionally, only the child’s social security number will be needed to claim the Child Tax Credit.
Additionally, the social security numbers of the parent, spouse (if filing jointly) and the child are needed to claim the Child Tax Credit.
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The One Big Beautiful Bill makes more changes to U.S. tax law. Don't worry! They will be covered in later articles. To make sure you don't miss stay in contact.
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