Seniors
Additional deduction 2025-2028 of $6,000 per person age 65 and older (subject to MAGI phase out)
What is the Enhanced Senior Deduction?
This credit existed under the TCJA, but was increased from $2,000 to $2,200 under the OBBB
What is the Child Tax Credit?
2025 through 2028, taxpayers with qualifying income are eligible to deduct up to $25,000 due to this provision (single or MFJ)
What is the "No Tax on Tips" Deduction?
This exemption was increased by about 7% to $15 million per person for 2026. This exemption is made permanent and will be adjusted for inflation.
What is the estate and gift tax lifetime exemption?
This deduction begins to phase out at MAGI of $75,000 ($150,000 for Joint Filers) and phases out completely at MAGI of $175,000 ($250,000 for Joint Filers).
What is the Enhanced Senior Deduction?
This tax credit is now refundable, up to $5,000.
Up to $12,500 (Single) / $25,000 (Joint) (2025-2028) of qualifying income is eligible for deduction
What is the "No Tax on Overtime" Deduction?
Permanently extended at $10,000 ($5,000 if married filing separately), with a temporary increase to $40,000 for 2025-2029. Phases out for taxpayers with an adjusted gross income (AGI) over $500,000.
What is the SALT cap?
This change was made to the way Social Security income specifically is taxed
(Trick question, no change)
Every child born in 2025–2028 will have an account prefunded by the government with $1,000.
What are Trump Accounts?
Married individuals who file a separate return are not eligible for this deduction.
What are "No Tax on Tips" AND "No Tax on Overtime" Deductions?
Deduction of up to $10,000, 2025–2028 (phases out by 20% for each dollar of AGI over $100,000 (single) or $200,000 (MFJ))
What is the auto loan interest deduction?
This new above-the-line deduction is on TOP of the standard deduction and the current-law additional deduction for seniors
What is the Enhanced Senior Deduction?
This credit phases out for unmarried parents with income over $200,000 and married couples with income over $400,000 (not new to OBBB)
What is the Child Tax Credit?
Taxpayers will begin to phase out of this deduction by $100 for each $1,000 by which the taxpayer’s MAGI exceeds $150,000 ($300,000 for Joint Filers)
What are "No Tax on Tips" AND "No Tax on Overtime" Deductions?
Beginning in 2027, this credit allows taxpayers to claim a non-refundable credit of up to $1,700 per year for cash donations to approved organizations.
What is the Scholarship Credit?