OBBBA (One Big Beautiful Bill Act)
OBBBA is the tax law signed on July 4, 2025 (H.R. 1). It made most of the 2017 tax cuts permanent and added new deductions for tips, overtime, car loan interest and seniors.
For 2025 it raised the standard deduction, increased the child tax credit to $2,200, raised the SALT cap to $40,000 with a phase-down for high incomes, and restored 100% bonus depreciation for property acquired after January 19, 2025. Several of the new deductions run only from 2025 to 2028.
Example. A single filer who earns $12,000 of qualified overtime premium in 2025 can deduct it, subject to the $12,500 cap and the income phase-out.
By Binod Raj Singh, CPA (licensed in Montana) · Updated for the 2026-2027 exam windows · Last updated 2026-11-05