How will the One Big Beautiful Bill impact my taxes?

Most of the new tax laws under the One Big, Beautiful Bill don't start until 2025 (the taxes you file in 2026). Some of them start in 2026. There are a few uncommon provisions that impact tax year 2024.

TurboTax will be updated with these new tax laws following IRS guidance when they take effect.

What are the key changes?

The TurboTax blog has the details on this bill. Here’s a summary of some of the changes.

• State and Local Tax (SALT) deduction: The SALT cap has been increased to $40,000 for taxpayers earning up to $500,000, depending on your filing status. This means you can deduct more of your state and local taxes, including property taxes.
• Tips and overtime: There are new deductions for tips and overtime pay for workers who make $150,000 or less.
• Energy credits: Credits for energy-efficient home improvements will end after 2025 and after Sept. 30, 2025 for electric vehicles. 
• Child Tax credit: The Child Tax Credit has been increased to $2,200 per child under 17, with annual adjustments for inflation.
• Senior deduction: There's a $6,000 deduction for people 65 and over who make $75,000 or less, or $150,000 or less (married filing jointly).

What to do next

If you haven’t filed your 2024 taxes yet, you don't need to hold off on filing—you can file in TurboTax today. Most of the new tax laws under the One Big, Beautiful Bill don’t start until tax year 2025 and 2026, with the exception of a few uncommon provisions that impact tax year 2024.