02/26/2026
Big Beautiful Bill, Big Tax Changes – What You Need to Know
✔ Tax Brackets Stay Put – The income tax brackets from the 2017 Tax Cuts and Jobs Act are now permanent. (10% through 37%).
✔ Estate & Gift Tax Exemption – Starting in 2026, you can pass along up to $15 million tax-free in your lifetime (double for couples).
✔ Alternative Minimum Tax (AMT) – Kicks in sooner for high-income households (over $1M for couples).
✔ 20% QBI Deduction – More business owners qualify for the pass-through income deduction.
✔ Bigger Standard Deduction – Starting in 2025, $31,500 for couples, $15,750 for singles — with inflation adjustments.
✔ Charitable Deduction (for non-itemizers) – Even if you don’t itemize, you can deduct up to $2,000 joint / $1,000 single starting in 2026.
📝 What’s Changing with Itemized Deductions:
High earners get a little less bang for their buck (deductions capped at 35% savings).
Charitable donations now have a small floor (must exceed 0.5% of AGI).
New scholarship donation tax credit coming in 2027 — dollar-for-dollar tax savings!
🎓 Education Perks
529 Plans are more flexible: up to $20K for K–12 tuition, plus career training and test prep.
Employer educational assistance is now permanent — including student loan help up to $5,250/year.
⏳ New & Time-Limited Provisions
SALT Deduction: Raised to $40K for many taxpayers (2025–2029).
Tips & Overtime Deduction: Up to $25K for workers earning under $150K (2025–2028).
Auto Loan Interest Deduction: Up to $10K on U.S.-made vehicles (2025–2028).
Senior Deduction: Up to $12K for couples over 65 (2025–2028).
Child Tax Credit: Increasing to $2,200 per child (indexed for inflation).
“Trump Accounts”: $1,000 starter savings account for babies born 2025–2028.
💡 What This Means for You:
The One Big Beautiful Bill Act is designed to reshape how families, entrepreneurs, and nonprofits plan for taxes, wealth transfer, and giving back.
Some of these changes could work in your favor — but only if you adjust your strategy early.
Here’s the truth: the tax code wasn’t written with simplicity in mind. But that’s why I’m here — to translate the law into clear action steps that help you keep more of what you earn, protect your wealth, and maximize your giving.
✨ Bottom Line
This bill is big, it’s bold, and it’s going to affect you. Let’s make sure you’re on the winning side of these changes.
Maximizing your wealth, one deduction at a time,
Eliza Conner, MA, EA
Tax & Profit Strategist
