Politics
Passed in 2017 and set to sunset in 2025, this act implemented substantial changes to the US federal tax system. Many key provisions of this act have been permanently extended in the OBBB.
What is the Tax Cuts and Jobs Act (TCJA)?
Made permanent with the OBBB, the Section 199A deduction allows eligible self-employed individuals and owners of pass-through businesses to deduct up to 20% of this type of income.
What is qualified business income (QBI)?
(OBBB added a $400 minimum deduction for active QBI of $1,000+)
This subset of itemized deductions (with a 2% AGI imitation) was temporarily suspended by the TCJA but has been repealed indefinitely by the OBBB.
What are miscellaneous itemized deductions?
This credit has been permanently increased by $200 and will be inflation adjusted starting in 2026.
What is the Child Tax Credit?
The federal government will make a one-time tax-free contribution of this amount to a Trump account for each US citizen born in 2025 through 2028.
What is $1,000?
On July 1, 2025, the OBBBA passed the senate by this vote margin.
What is 51-50?
(JD Vance cast the tie breaking vote)
From 2025-2028, new income tax deductions up to $25,000 are available for tips and overtime pay. However, tips and overtime pay are still fully subject to this taxation.
What are payroll taxes?
This cap of this deduction has been increased to $40,000 for taxpayers making less than $500,000, with the cap reverting to $10,000 after 5 years
What is the state and local income tax (SALT) deduction?
Starting in 2026 the federal estate and gift tax exemption will be increased to this amount per person.
What is $15 million?
The OBBB adds these kind of requirements (for the first time at a federal level) to non disabled Medicaid recipients ages 19-64.
What are work requirements?
To more easily pass the bill, Republicans chose to use this special process, which allowed them to avoid the 60-vote Senate filibuster.
What is budget reconciliation?
For cars assembled in the United States and purchased between 2025 and 2028, car buyers can now deduct up to this amount per year in auto loan interest.
What is $10,000?
Starting in 2026, gambling losses can only be deducted up to this percentage of gambling winnings.
What is 90%?
For qualified small business stock (QSBS) acquired after July 4, 2025, the maximum gain exclusion has been increased to this amount.
What is $15 million?
This law enforcement agency will become the most heavily funded law enforcement agency in the federal governement by 2029.
What is U.S. Immigration and Customs Enforcement (ICE)?
OBBB increases funding from $10 billion to $100 billion by 2029.
This Republican senator and congressman duo from Kentucky voted NO to the OBBB because of its projected impact on the national debt.
Who are Senator Rand Paul and Congressman Thomas Massie?
A new deduction for up to this amount of charitable contributions is available to individuals who do NOT itemize.
What is $1,000?
($2,000 for joint filers)
In 2026, David & Shayla Tombs had an AGI of $1,000,000. They donated $50,000 to the Church of Jesus Christ of Latter Day Saints, and $10,000 to Big Brothers Big Sisters of Lubbock. Assuming they itemize, they can deduct this amount as charitable contributions.
What is $55,000?
OBBB places a 0.5% AGI floor on itemized charitable contributions
The $7,500 clean vehicle credit will expire for vehicles purchased after this date.
When is September 30, 2025?
The OBBB increases the annual 529 distribution limit for K-12 expenses from $10,000 to $20,000. The OBBB also now allows 529 distributions to be used for these post-college expenses.
What are credential expenses?
Exams, continuing education, etc.
To secure Senator Murkowski's vote, a special tax deduction was increased for this group of Alaskan workers.
What are Whaling Captains?
Effective for 2025 through 2028, individuals who are age 65 and older may claim an additional deduction of $6,000. This deduction phases out for taxpayers with modified adjusted gross income over this amount.
What is $75,000?
$150,000 for joint filers
Starting in 2026, the tax reduction for those in the highest tax bracket will be capped at this amount for every dollar of itemized deductions.
What is $0.35?
Starting in 2027, a nonrefundable credit is available up to $1,700 for contributions made to this specific type of 501(c)(3) charity providing scholarships to in-state students for K-12 educational expenses.
What are scholarship-granting organizations (SGOs)?
The TCJA implemented a 1.4% excise tax on the investment earnings of the endowments of certain private colleges and universities. The OBBB increases the maximum excise tax to this percentage.
What is 8%?