The Big, Beautiful Tax Bill—And What It Means for Your Family’s Finances

On July 4th, President Trump signed the highly anticipated One Big Beautiful Bill (the Bill), a major piece of legislation designed to extend and expand the 2017 tax cuts while adjusting federal spending priorities. Whether you’re a wage earner, retiree, parent, or homeowner, this new law introduces several changes that could directly benefit your financial situation—starting this year.

While the bill’s name suggests it’s enormous, it comes in at about 870 pages—typical for a major legislative package. Packed into those pages are several important tax breaks aimed at individuals and families.

Individuals and Married Filing Joint (MFJ)

The Bill brings a range of impactful tax changes aimed at individuals and families, locking in lower tax rates and expanded deductions for the long term.

· The 2017 tax cuts are now permanent, meaning lower income tax rates and higher standard deductions will no longer expire in 2025.

· Tip income up to $25,000 and overtime pay up to $12,500 are now income tax-free, though these benefits phase out for higher earners.

· An annual $6,000 Senior Tax Bonus is available for individuals over 65, or $12,000 for MFJ.

· The Child Tax Credit is permanently increased to $2,200 per child.

· You can now deduct up to $10,000 per year in auto loan interest, as long as the car is assembled in the U.S.

For Homeowners and Property Tax Payers

Homeowners and property taxpayers may see meaningful benefits, as the new legislation locks in key deductions and raises limits that can significantly reduce taxable income.

· The mortgage interest deduction cap of $750,000 is now permanent.

· Mortgage insurance (PMI) premiums are deductible for incomes up to $100,000.

· The State and Local Tax (SALT) deduction cap is increased to $40,000 for joint filers (with phase-outs beginning at $500,000 in income).

Changes to Clean Energy Incentives

The bill signals a shift in policy by winding down several clean energy incentives that have helped drive “green” adoption in recent years. This will cause these companies to be more competitive in the free market and not be supported by taxpayers.

· The $7,500 EV tax credit ends in September 2025.

· Home energy tax credits for efficient windows, insulation, and HVAC expire in 2026.

· Solar panel and battery storage tax credits are also phasing out after 2026.

If you're considering making energy-efficient upgrades, now may be the time to act to qualify for current incentives. Or... wait and see what happens when companies have to offer their own incentives to get people to buy these items.

This sweeping legislation marks a significant shift in U.S. tax policy, offering new opportunities for savings and long-term planning. To fully benefit, individuals and families should take time to review their tax withholdings, revisit retirement and estate strategies, and consult a financial advisor to ensure they're making the most of the expanded deductions and credits.