EDITOR’S NOTE (Nick Stamatakis). In response to popular demand, we are pleased to post here the main tax relief provisions of the BBB. We wish and pray that the tremendous rise in the national debt, resulting from other provisions of this bill (including the substantial national defense spending that now exceeds $1 trillion annually), will not have a bitter outcome for all of us…
Permanent Increase in Child Tax Credit
Raised to $2,200 per child starting in 2025, with the credit indexed for inflation.
The $1,400 refundable portion is also made permanent.
Income phaseout thresholds increased to $200,000 for single filers and $400,000 for joint filers.
Higher Standard Deduction
For 2025, the standard deduction is increased to $15,750 for single filers and $31,500 for joint filers.
These amounts are set to continue in future years.
Permanent Reduction in Individual Income Tax Rates
The bill makes permanent the individual income tax rates established by the 2017 Tax Cuts and Jobs Act.
New Temporary Deductions (Expiring in 2028)
Tipped Workers: A deduction up to $25,000.
Overtime Workers: A deduction up to $12,500.
Seniors (65+): An additional bonus deduction of $6,000 for individuals earning ≤$75,000, and couples earning ≤$150,000.
These provisions are set to expire in 2028.
Increased SALT Deduction Cap
The state and local tax (SALT) deduction cap is raised to $40,000 for taxpayers earning less than $500,000.
This higher cap will revert to $10,000 after 2029.
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New Deduction for Car Loan Interest
Introduces a new deduction for interest paid on auto loans.
Specifically, an above-the-line deduction of up to $10,000 for qualified passenger vehicle loan interest each year.
Social Security Benefits Tax Relief
Provides a temporary deduction reducing the taxable portion of Social Security benefits.
Approximately 88% of seniors may no longer pay federal income tax on their Social Security benefits due to this provision.
