Summary of the Major Individual Tax Bill Changes

🧾 Key Tax Changes for Individuals

1. Permanent Standard Deduction Increases

Standard deduction has been permanently raised:

Single: $15,750

Head of household: $23,625

Married filing jointly: $31,500, all indexed for inflation 

2. SALT Deduction Cap Temporarily Raised

State and local tax (SALT) deduction cap increased to $40,000 for 2025–2029 (indexed), phased out for MAGI over $500k and reverting to $10k from 2030 

3. Boosted Child Tax Credit

Credit increased from $2,000 to $2,200, with the refundable portion pegged at $1,400, and indexed for inflation 

4. Senior Tax Break

New above-the-line deduction of $6,000 for taxpayers aged 65+, phasing out for MAGI over $75k (single) or $150k (joint) for 2025–2028 

5. New Deduction for U.S.-Assembled Auto Loans

Up to $10,000 deduction annually for interest paid on personal auto loans for vehicles assembled in the U.S. (2025–2028), phasing out above MAGI $100k/$200k 

6. Temporary Tip & Overtime Income Deductions

Tax deduction up to $25,000 for tips and $12,500/$25,000 for overtime pay (single/joint) for income under $150k/$300k, valid through 2028 

7. “No Itemize” Charitable Deduction

Starting in 2026, non-itemizers can deduct up to $1,000 (individuals) or $2,000 (joint) in charitable cash contributions 

8. “Trump Accounts” for Kids

Establishes savings accounts for children born 2025–2028:

Federal $1,000 initial deposit at birth

Parents can contribute up to $5,000/year (tax-advantaged) 

⚠️ Trade-offs & Expiring Incentives

Clean-energy credits like EV purchase, solar panels, and hydrogen investments are being phased out, some expiring as early as Sept/Dec 2025 

The expanded SALT cap and other temporary benefits sunset between 2028–2030, requiring forward planning 

✅ What You Should Do

Action Why It Matters

Time purchases Especially auto loans or clean-energy projects before sunset dates

Plan charitable giving Consider relying on non-itemized deduction (2026 onward)

Review quarterly withholding Adjust now to capture new deductions

Watch sunset timelines Some benefits last only until 2028–2030

This list summarizes the major tax changes for individual taxpayers that have been enacted recently. We understand that you may have specific questions about how these adjustments will impact your personal tax situation, and we are here to provide clarity.

As of today, tax professionals are still awaiting further detailed guidance from the IRS regarding a more comprehensive list of tax changes and the precise methods for their implementation going forward. We are closely monitoring these developments to ensure we have the most current information.

Should you wish to discuss these changes in the context of your unique financial circumstances or need assistance navigating their implications, please do not hesitate to schedule a personalized consultation with us. We are ready to help.