How will the One Big Beautiful Bill impact my taxes?
Most of the new tax laws under the One Big, Beautiful Bill go into effect for your 2025 taxes. Some of them start with your 2026 taxes.
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.
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). Read more here.
