What the One Big Beautiful Bill Tax Law Means for Your Finances in 2025
- Jeff Schlotterbeck, CFP®
- Jul 22, 2025
- 3 min read
Updated: Jul 23, 2025
Posted July 23, 2025
If you’ve seen recent headlines or flipped on the news, chances are you’ve heard about the new One Big Beautiful Bill tax law—a sweeping set of changes that could reshape how American households plan for taxes, retirement, education, and more.
This 900+ page legislation was signed into law in 2025, and it builds on the foundation laid by the 2017 tax cuts. Think of it as a financial remodel: some features are upgraded, others removed, and many impact your day-to-day financial decisions.
While the political debate will continue, this article is about what truly matters—how the law might affect you.
Key Changes in the One Big Beautiful Bill Act¹
Tax brackets remain the same
Lower income tax rates and higher standard deductions are now permanent. In 2025, single filers can claim $15,750, and married couples filing jointly can claim $31,500.
SALT deduction cap increases
The cap on state and local tax deductions will rise from $10,000 to $40,000 in 2025, with indexed increases through 2029.
Extra tax relief for seniors
Individuals age 65 and older may qualify for an additional $6,000 deduction, depending on income level.
Boosted Child Tax Credit and new “Trump Accounts” for newborns
The Child Tax Credit increases to $2,200. Children born between 2025 and 2028 will receive a $1,000 federally funded account to help jumpstart future savings.
Student loan system overhaul
Repayment plans such as SAVE and PAYE will be eliminated. PLUS loan caps are being introduced, and the Grad PLUS program will end on July 1, 2026.
Greater flexibility with 529 plans
Funds can now be used for up to $20,000 in K–12 tuition, educational therapies, and more.
Temporary deductions and phasing out of clean energy credits
New deductions will apply to tipped income, overtime, and some U.S.-manufactured vehicle loans. However, credits for electric vehicles and clean energy are being phased out over time.
How the One Big Beautiful Bill Tax Law Could Affect Your Financial Plan
Whether you're saving for retirement, managing student debt, or planning for a growing family, this law may affect the decisions you make going forward. Some provisions begin immediately, while others are phased in through 2026 and beyond.
While media outlets focus on the politics, your focus should be on the practical. These changes have the potential to impact your tax strategy, investment approach, and overall financial plan.
Let’s Talk About Your Strategy
Every household’s financial picture is different. Navigating these tax changes successfully means evaluating how they affect your goals and adjusting accordingly.
If you’d like to review how these updates may apply to you, I’m here to help. From retirement contributions to education savings to tax planning, we can walk through it together.
You can schedule a time to talk or contact me below to start the conversation.
Sources:
Risk Disclosure: Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Past performance does not guarantee future results. This material is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. The content is developed from sources believed to be providing accurate information; no warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability, or usefulness of any information. Consult your financial professional before making any investment decision. For illustrative use only.
