Sandra M Biancaniello CPA, PLLC

07/05/2026

02/16/2026

Some Key Provisions of OBBBA

Senior Deduction: $6,000 deduction for taxpayers age 65+. Phases out starting at $75,000 MAGI ($150,000 MFJ).

Child Tax Credit: Increased to $2,200 and indexed for inflation.
State and Local Tax (SALT) Deduction: Raised to $40,000 (from $10,000) for 2025, with annual increases through 2028. Reverts to $10,000 in 2029.

Qualified Tips Deduction: Up to $25,000 deduction. Phases out above $150,000 AGI ($300,000 MFJ). Applies to income tax only—tips remain subject to employment/self-employment taxes.

Qualified Overtime Deduction: Up to $12,500 ($25,000 MFJ). Phases out when MAGI exceeds $150,000 ($300,000 MFJ).

Passenger Vehicle Loan Interest Deduction: Up to $10,000 for interest on loans originated after 2024 for new U.S.-assembled passenger vehicles under 14,000 lbs. Leases do not qualify.

Trump Accounts: New IRA-type accounts available after 2025 for beneficiaries under age 18. Contributions allowed from the child, parents, others, and employers.
* Pilot program provides a $1,000 IRS contribution for eligible children.
*Eligible child: U.S. citizen born after December 31, 2024, and before January 1, 2029.