The One Big Beautiful Bill Act

The One Big Beautiful Bill Act (OBBBA), recently signed into law, introduces significant new tax benefits aimed at helping working Americans and seniors reduce their tax liability starting in tax year 2025:

👵 For Seniors (Age 65+):

• Eligible seniors can claim an additional $6,000 standard deduction on top of the existing senior deduction.
• Married couples filing jointly can receive up to $12,000 in added deductions if both spouses are age 65 or older.
• Income limits apply:
• $75,000 for single or head-of-household filers
• $150,000 for married couples filing jointly
• The added deduction is temporary and will be in effect for four tax years (2025–2028).

👷 For Workers (with overtime or tip income):

• Workers earning overtime pay or tips may also benefit from expanded above-the-line deductions, helping to reduce their taxable income directly.

These changes are designed to put more money back in the pockets of working-class Americans and seniors living on fixed incomes, especially in the face of inflation and rising living costs.