The year 2025 brings a major turning point in U.S. tax law. The Tax Cuts and Jobs Act (TCJA), passed in 2017, was designed with many provisions that were set to expire at the end of 2025. Without new legislation, this would have meant higher tax rates, smaller deductions, and reduced credits for millions of taxpayers.
To address this, Congress passed the One Big Beautiful Bill Act (OBBBA) in July 2025. This new law keeps many of the TCJA benefits in place and introduces additional tax relief measures.
Key highlights include:
-Permanent tax rate cuts – The lower brackets from the TCJA will no longer expire.
-Standard deduction remains high – Preventing a return to the much lower pre-2017 deduction levels.
-Expanded credits and deductions – Families will see an increase in the Child Tax Credit, seniors (65+) can benefit from a new deduction, and workers may qualify for deductions on overtime pay, tips, and even some auto loan interest.
-Higher SALT cap (temporarily) – Taxpayers in states like New York and New Jersey may see more relief on their state and local tax deductions.
At A&E CPA Tax Services, our priority is helping you understand how these changes impact your finances. While some provisions are permanent, others are temporary and could phase out over the next few years—making proactive tax planning more important than ever.