The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, is a sweeping overhaul of federal tax, spending, and social programs. Designed to extend parts of the Tax Cuts and Jobs Act (TCJA) and introduce new policy changes, it’s reshaping everything from tax brackets to retirement and healthcare.
Key Provisions That Matter to You
Tax Cuts & Credits
- Extends TCJA tax brackets and nearly doubles the standard deduction.
- Raises the Child Tax Credit from $2,000 to $2,200 per child (index‑adjusted).
- Increased SALT Deduction Cap
- New deductions: tips & overtime up to $25,000; car interest for certain U.S.-made vehicles.
Who’s Winning?
- Middle‑class families benefit from lower tax bills, more credits, and new deductions.
- Small businesses and workers gain via pass-through income deductions and expanded retirement savings incentives.
- Individuals & universities benefit from SALT deductions, estate tax changes, and exclusively new “Trump Accounts” for newborns.
What You Should Do Now: Planning Tips for 2025
- Revisit your tax plan Adjust withholding and estimated payments to reflect new standard deduction limits and credit boosts.
- Maximize temporary deductions Take advantage of tip/overtime deductions and auto‑loan interest breaks before they expire (2028).
- Use new savings tools Explore “Trump Accounts” for kids, enhanced HSAs, and changes to FSAs and 529 plans.
- Evaluate benefit trade‑offs If you’re Medicaid or SNAP-eligible, assess how new work requirements and state-level costs might affect you or your community.
- Explore small-business opportunities Use pass-through deductions, bonus depreciation, and retirement incentives to enhance your long-term strategy.
Why It Matters: Real-Life Takeaways
- Families may see immediate tax savings through increased credits and deductions but should weigh them against potential future costs in healthcare support.
- Business owners and side-hustlers can benefit from enhanced deductions, though planning for sunset dates is key.
- Low-income Americans may face tougher eligibility for critical support programs, making proactive budgeting vital.
Turning Policy Into Possibility
The One Big Beautiful Bill Act brings a mix of growth opportunities and tough decisions. While it offers new ways to save, give, and plan, it also shifts responsibilities in areas you rely on. Smart action now—like optimizing deductions and adjusting savings strategies—can set you up for future success.
What You Can Do Next
At Mitlin, we believe tax planning isn’t a once-a-year event → it’s a core part of building a life that reflects your values, goals, and unique version of JOY.
Now is the perfect time to:
- Get clarity on your 2025 outlook with a personalized review from our team
- Explore smart, strategic moves around retirement, education, business income, and charitable giving
- Stay ahead of the curve as new rules phase in through 2028 and as state-level decisions shape local impacts
We are here to help you turn today’s legislation into tomorrow’s opportunity.
Download your copy of:
“Key Impacts of the One Big Beautiful Bill Act (OBBBA)”
Want to See What This Law Means for You?
At Mitlin, we know that translating policy into personal strategy takes more than a headline. That’s why our team uses updated tax planning tools, including Holistiplan, to run clear, personalized projections—so you can see how changes like expanded deductions and new tax brackets may affect your return and guide smarter tax planning decisions.
Schedule your 30-minute Zoom session and get a personalized look at what’s ahead.
