The One Big Beautiful Bill Act (OBBBA) signed in July 2025 offers significant tax relief for married couples from 2025–2028, including a higher standard deduction of $31,500 (for 2025) and a new, temporary $12,000 deduction for couples over 65. It also makes permanent the 2017 tax cuts, provides child tax credit increases, and introduces new, specialized savings accounts.
The One Big Beautiful Bill Act (OBBBA) created a new tax deduction for seniors 65+ starting with the 2025 tax year, offering up to $6,000 for single filers and $12,000 for married couples.
The One, Big, Beautiful Bill will cut taxes for Americans earning under $50,000 by 14.9%. 66% of The One, Big, Beautiful Bill's tax cuts benefit families making less than $500,000. The tax cuts and economic growth from The One, Big, Beautiful Bill will increase the take- home pay for a family of four by $10,900.
Trump Tax Plan Changes: Standard Deduction
The 2017 Trump tax law (TCJA) nearly doubled the standard deduction for all filers, and OBBB bumped them up. If you're a single filer or if you're married filing separately, your standard deduction for 2025 rose to $15,750 under OBBBA.
Filing jointly is generally advantageous, but it's even more advantageous for married couples in which the spouses have unequal incomes. The joint tax tables will put more of the higher earning spouse's earnings in a lower tax bracket.
Recent tax law changes, primarily from the "One, Big, Beautiful Bill," provide new breaks for married couples, including a significant increase in the standard deduction for 2025 (to $31,500 for joint filers) with an added 5% boost, plus a potential new up to $12,000 "bonus" deduction for seniors (65+) filing jointly, available on top of existing deductions, all impacting returns filed in 2026 and beyond.
If the individual tax cuts expire, taxpayers in all income groups would face higher and more complicated taxes. Machinery and equipment expensing is a key provision that, if allowed to expire, would especially harm capital-intensive industries like manufacturing.
3. Retirement plan contribution caps rise. The IRS sets annual limits on the amount you can put into an individual retirement account (IRA) or workplace retirement plan, with multiple tiers. For IRAs, the standard contribution cap for the 2026 tax year is $7,500, up from $7,000 in 2025.
Washington, D.C.--Through policies like a standard deduction boost, tax benefits for child care affordability, and delivering on the President's agenda on no taxes on tips, no taxes on overtime, and tax relief for seniors, Senate Republicans' legislation provides significant relief to low- and middle-income Americans.
The "big beautiful" tax package includes other tax changes that individuals ages 65 and over may take advantage of — a higher standard deduction and state and local tax deduction, a deduction of up to $10,000 per taxpayer for interest on new auto loans, plus no tax on tips or overtime pay for those who are still ...
Permanent Exemption Increases
Unified estate and gift tax exemption is permanently increased to $15 million per individual ($30 million for married couples) beginning on January 1, 2026, with annual inflation adjustments thereafter.
Homeowners in high-tax states could see major savings with the new SALT deduction. First-time buyers and low-down-payment buyers get tax relief from the mortgage insurance deduction. All homeowners keep their mortgage interest deduction. Renters and future buyers could benefit from more affordable housing being built.
To avoid the 22% tax bracket (or any higher bracket), focus on reducing your taxable income through strategies like maxing out 401(k)s and HSAs, deferring bonuses, tax-loss harvesting, smart charitable giving, and strategic asset location, understanding that higher rates only apply to income within that bracket, not your entire income.
Tax brackets are different for each filing status, so your income may no longer be taxed at the same rate as when you were single. When you are married and file a joint return, your income is combined—which, in turn, may bump one or both of you into a higher tax bracket.
People who turned 65 by Dec. 31, 2025, are eligible for the new deduction, according to the IRS. The deduction provides $6,000 for each qualifying individual, or $12,000 for married couples who both qualify. The tax break is subject to income limits.
The 2025 Federal Tax Debate
Much like the 2017 tax law, the new law favors the richest taxpayers. More than 70 percent of the net tax cuts will go to the richest fifth of Americans in 2026, only 10 percent will go to the middle fifth of Americans, and less than 1 percent will go to the poorest fifth.
This deduction starts in tax year 2025, meaning retirees aged 65 or older may qualify for up to $6,000, while married couples where both partners meet the age requirement can claim up to $12,000. The deduction is scheduled to remain in effect through 2028, unless Congress renews it.
One Big Beautiful Bill Tax Law Changes for your 2026 (and on) tax returns
Many business expenses are 100% deductible, including advertising, employee wages, rent, supplies, and certain business meals like company parties or meals for the public, while personal deductions like student loan interest or charitable donations (depending on the type) can also be fully deductible for individuals. The key is that the expense must be "ordinary and necessary" for your trade or business or meet specific IRS criteria, often differentiating from the 50% rule for client meals.