The "One, Big, Beautiful Bill Act" (Public Law 119-21), signed on July 4, 2025, is a major tax overhaul that makes permanent many 2017 Tax Cuts and Jobs Act (TCJA) provisions, including individual tax brackets and a higher standard deduction. It increases the Child Tax Credit to $2,200 and introduces new deductions for seniors and overtime pay.
Here's a summary of key changes for the 2025 tax year. The seven federal tax brackets (10%, 12%, 22%, 24%, 32%, 35%, 37%) are now permanent. Standard deductions increased, plus a new “bonus” deduction for older adults. Child tax credit increased to $2,200 per qualifying child.
The One, Big, Beautiful Bill Act significantly affects federal taxes, credits and deductions. It was signed into law on July 4, 2025, as Public Law 119-21, and takes effect in 2025.
President Donald Trump's "big beautiful" tax law provides a new senior "bonus" or deduction of up to $6,000 per individual or $12,000 for married couples. The temporary deduction applies to taxpayers ages 65 and over whose income is within certain thresholds.
The One Big Beautiful Bill Act (OBBBA) or the Big Beautiful Bill (P.L. 119-21), is a U.S. federal statute passed by the 119th United States Congress containing tax and spending policies that form the core of President Donald Trump's second-term agenda. The bill was signed into law by Trump on July 4, 2025.
April 10, 2025, the House adopted the Senate's amended version of the budget resolution, which allows $5.3 trillion in deficit-financed tax cuts (the combination of $3.8 trillion of tax cuts assumed to be “costless” under a current policy baseline plus $1.5 trillion in additional deficits permitted), deficit increases ...
Soon after, the president released his FY 2025 budget outlining how the White House would implement the president's tax vision, indicating a gross tax hike of about $5.3 trillion from 2024 to 2034. On a gross basis, we estimate Biden's FY 2025 budget would increase taxes by about $4.4 trillion over that period.
Some of the major tax changes effective from April 1, 2025, are revised tax slabs, rebate of up to Rs. 60,000, revised ITRU deadlines, calculation of partner's remuneration allowable as a deduction and revised TDS/TCS threshold limits. What is the Rebate available under section 87A?
In March 2021, eligible individuals received up to $1,400 per income tax filer and $1,400 per child under the American Rescue Plan Act.
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.
Biden's tax plan seeks to restore higher tax rates, including top individual federal income tax, which he wants to restore to the pre-Trump rate of 39.6% from 37%, and corporate rates to 28% from 21%. Individual taxpayers who have incomes less than $400,000 would not see any increase to their rates.
Trump ERS would be a dedicated agency, separate from the Internal Revenue Service (IRS), with the sole mandate of overseeing, collecting, and enforcing tariffs and related trade taxes.
From October 1 to November 12, 2025, the federal government of the United States was shut down as Congress failed to pass appropriations legislation for the 2026 fiscal year.
The late filing penalty is 5% of the additional taxes owed amount for every month (or fraction thereof) your return is late, up to a maximum of 25%. If you file more than 60 days after the due date, the minimum penalty is $525 (for tax returns required to be filed in 2026) or 100% of your unpaid tax, whichever is less.
Key Takeaways
Costs for Part B (Medical Insurance)
$202.90 each month (or higher depending on your income). The amount can change each year. You'll pay the premium each month, even if you don't get any Part B-covered services.