The One Big Beautiful Bill Act (OBBBA) is a wide-reaching piece of legislation signed into law in July 2025. This comprehensive package covers a broad range of topics including tax provisions. Although many aspects of the law are still in the process of being implemented, many of its tax provisions took effect immediately and will impact 2025 tax filings.
What does this mean for you?
- Lower Tax Rates and Increased Standard Deduction maintained: The OBBBA generally made the tax rates enacted in 2017 permanent as well as increased the standard deduction for individuals. For 2025, the amounts are $15,750 if filing individually or married filing separate; $23,625 for head of household, and $31,500 for married filing jointly.
- Additional Deduction for older Americans: While Social Security benefits will continue to be taxed under existing rules, the new senior deduction of $6,000 may provide some relief by reducing or eliminating the tax owed for qualifying individuals. According to an analysis by the White House Council of Economic Advisors, provisions from the OBBBA will allow approximately 88% of those over 65 to receive Social Security benefits tax free.
Click HERE for more info on the OBBBA
Contact your CPA for additional info on how the OBBBA will affect your 2025 tax filings.
