THE BIG BEAUTIFUL BILL BRINGS BIG CHANGES FOR TAXPAYERS

Older adults and homeowners in high-tax states will benefit, but some energy-saving tax credits will go away.

- BY SANDRA BLOCK

The One Big Beautiful Bill Act, signed by President Trump on July 4, includes tax breaks for an expansive range of taxpayers, while scrapping credits for energy-saving vehicles and home improvements.

More broadly, the legislation makes the tax cuts in the 2017 Tax Cuts and Jobs Act permanent, which means tax rates won't increase after 2025. Here’s a look at how other provisions in the bill could affect your taxes.

OLDER ADULTS

Larger standard deduction. Starting in the 2025 tax year, those who are 65 or older will be eligible for an additional standard deduction of $6,000. The bonus deduction comes on top of an existing increase in the standard deduction of $2,000 for single filers who are 65 or older; for married couples who file jointly, it’s $1,600 for each spouse 65 or older.

The expanded deduction means an eligible taxpayer with a filing status of single will be able to deduct up to $23,750 from taxable income, while a married couple will qualify for a deduction of up to $46,700, assuming both are 65 or older.

The deduction starts to phase out for couples with modified adjusted gross income of more than $150,000 and is fully phased out at MAGI of $250,000 ($75,000 and $175,000 for single filers). This new deduction is available for 2025 through 2028.

The legislation won't eliminate taxes on Social Security benefits. But by lowering taxable income, it will reduce the number of beneficiaries who pay the taxes from 36% to 12%, according to the White House Council of Economic Advisers.