The One Big Beautiful Bill – The Act – introduced several tax saving opportunities for 2025 and beyond.
REDUCED INCOME TAX RATES
A tax rate reversion to 39.6% was prevented. The 2025 top rate remains at 37%. The marriage penalty relief for most brackets will continue.
INCREASED STANDARD DEDUCTION
Standard deduction amounts have been increased again, and will continue with adjustments for inflation.
CHILD TAX CREDIT
The child tax credit has been made permanent and increased to $2,200 per child and will continue with adjustments for inflation.
CHILD/DEPENDENT CARE
The maximum credit rate will increase to 50% of eligible expenses, up to $3,000 per dependent or $6,000 for two or more.
SENIOR DEDUCTION
For years 2025-2028, 65+ year old taxpayers can claim a $6,000 deduction.
The North Alabama United Methodist Foundation does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only.
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