Tax Deduction, Beautiful Bill
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Those who still choose to itemize their deductions will also see changes. Trump’s law temporarily raises the cap on state and local tax (SALT) deductions. It goes from $10,000 to $40,000 in 2025. This change could benefit taxpayers in high-tax states.
Range reports that Trump’s “Big Beautiful Bill” offers significant tax changes for high earners, including increased estate tax exemptions and expanded SALT deductions.
As a candidate, Trump promised to lift taxes on overtime. The new law allows workers to deduct up to $12,500 in overtime compensation (for single filers) or $25,000 (for joint filers). This deduction phases out for income levels between $150,000 and $275,000 (for single filers) and $300,000 and $550,000 (for joint filers).
The IRS Direct File program has been under fire from Republicans in Congress since it began. The program still feels like it’s on its way out.
Republicans, including Senate Minority Leader John Braun, have cheered on the bill for offering tax breaks to middle-class residents.
President Trump vowed to end taxes on Social Security, but the One Big Beautiful Bill stops short of fulfilling that promise.
An analysis by a think tank found that annual household energy costs in the state will increase $110 by 2030 and $410 by 2035.