THE BIG BEAUTIFUL BILL:What It Does for Everyday Taxpayers

Extensions & Permanent Tax Relief

● TCJA tax cuts (from 2017) are made permanent through 2025 and beyond, preserving lower tax brackets and the higher standard deduction

● Standard deduction remains elevated, nearly doubled versus pre‑2017 levels

Expanded Deductions & Credits

● SALT deduction cap raised to $40,000 (for incomes under $500K)

● New temporary deductions for tip and qualified overtime income—up to $25K between 2026–2028

● Auto loan interest deduction for U.S.-assembled cars (up to $10K annually)

● Child Tax Credit increased to $2,200 per child and indexed for inflation, though the refundable portion isn’t increased

● Senior deduction: $6,000 individual / $12,000 couple—boosting the share of Social Security recipients with no federal tax liability from 64% to 88%

Targeted Relief

● “Trump Accounts”: tax-advantaged savings accounts for children with an initial $1,000 federal deposit and annual parental contributions up to $5,000 (expires in 2028)

● 529 education plans gain more flexible usage

Important Disclosures

The opinions contained herein are subject to change without notice. Information contained herein has been obtained from sources believed to be reliable but are not assured as to accuracy. There is neither representation nor warranty as to the current accuracy of, nor liability for, decisions based on such information. Content should not be construed as legal or tax advice, Arrowroot Family Office LLC is not engaged in the practice of law or accounting.