The impact of the One Big Beautiful Bill on your taxes depends on your unique situation. We’ve analyzed the bill to help you understand what it means for you — from single filers, business owners, families, retirees, investors, homeowners, and more, we’ve examined a variety of tax situations to help you estimate your potential tax savings and get a clearer picture of how the new tax law changes may affect your refund for tax year 2025.
With our calculator, you can:
- Estimate your tax benefits and savings under the new tax law
- Understand how different tax provisions affect your refund
- Make informed decisions about your tax strategy
OBBB Tax Terms Explained
With these changes to the tax landscape, impact varies depending on factors such as income level, filing status, and deductions. Here are some key terms mentioned in the bill to help you understand the provisions that are included.
Income: The total amount of money earned from various sources, such as employment, investments, and self-employment.
Tax Rate: The percentage used to calculate your taxes based on your income.
Tax Bracket: A range of incomes taxed at a specific rate based on your taxable income.
SALT Deduction: A deduction for state and local income, sales, and property taxes, with a cap of $40,000 under the new tax law.
Deduction for No Tax on Tips: A temporary deduction for qualified tips up to $25,000, available for tax years 2025–2028.
Deduction for No Tax on Overtime: A temporary deduction for qualified overtime income up to $12,500, available for tax years 2025–2028.
Deduction for Car Loan Interest: A temporary deduction for car loan interest up to $10,000 per year for qualified car loans, available for tax years 2025–2028.
Expanded Child Tax Credit: An increased Child Tax Credit to $2,200 per child under 17, with annual adjustments for inflation.
Enhanced Deduction for Seniors: A temporary deduction up to $6,000 available to seniors ages 65+, available for tax years 2025–2028.
TurboTax is here to help you navigate the new tax law changes and maximize your refund. We’ve got you covered, whether you want to do your taxes yourself or have a TurboTax Live expert do them for you.
