8 Ways Trump’s ‘One Big Beautiful Bill’ Could Offer Tax Relief
Written by
Jordan Rosenfeld
Edited by
Molly Sullivan
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As Congress inches closer to voting on President Donald Trump’s “One Big Beautiful Bill” (BBB), which includes a sweeping tax code overhaul, taxpayers are wondering if it will mean more money in their pockets or more confusion. According to Miklos Ringbauer, CPA and founder of Miklos CPA based in Southern California, the answer depends on your income and how prepared you are to adapt.
“This will be one of those major overhauls of the tax code,” Ringbauer said. Some provisions aim to permanently extend benefits from the 2017 Tax Cuts and Jobs Act (TJCA), while others could sunset or add some complexity.
Even if the current iteration of the bill does not pass its final stage in the House of Representatives, it’s likely that any future iteration will uphold the tax provisions currently in it, Ringbauer believes.
Ringbauer broke down key provisions in the bill that could offer relief.
Lower Tax Brackets Across the Board
One of the key elements in the taxes portion of the BBB is that it would make permanent the tax cut rates that were passed by the TJCA in 2017, which, according to the IRS, are currently:
- 37% for single incomes over $626,350 and $751,600 for married couples filing jointly
- 35% for single incomes over $250,525 and $501,050 for married couples filing jointly
- 32% for single incomes over $197,300 and $394,600 for married couples filing jointly
- 24% for single incomes over $103,350 and $206,700 for married couples filing jointly
- 22% for single incomes over $48,475 and $96,950 for married couples filing jointly
- 12% for single incomes over $11,925 and $23,850 for married couples filing jointly
- 10.1% for single incomes of $11,925 or less and $23,850 or less for married couples filing jointly
Maintaining these tax cuts is good news for all income levels, with one exception, it benefits the highest-earning Americans the most and offers no new relief for those in the lowest tax brackets.
Child Tax Credit and 529 Plan Education Expansion
The bill offers some boosts to the child tax credit and expands the use of 529 education savings plans. “That’s a fantastic benefit for people who have kids,” Ringbauer said.
He also noted that the ability to use 529 plans for elementary, secondary and homeschool expenses makes them “very valuable … as long as the parents have the means.”
No Tax on Tips or Overtime
Perhaps one of the most widely talked about components of the tax portion of the bill is its proposal to eliminate taxes on tips and overtime income. While that might sound like a win, Ringbauer cautioned it could lead to complications.
“Differentiating between people who receive tips and people who are making the same amount of money [without tips] … puts certain groups in a disadvantaged position.”
Still, for those who qualify, it could mean a big difference in income.
Interest Deduction for American-Made Car Loans
Trump’s recent tariff wars have allegedly been a push to get Americans to buy more U.S.-made products, including cars (and for companies to manufacture more products in the U.S.). Thus, the bill also introduces an incentive to buy domestic vehicles by allowing interest deductions on loans for U.S.-manufactured cars.
“Your personal choice of what car you end up buying may end up impacting you [based on] you having the deduction,” Ringbauer said.
However, it also creates logistical and compliance hurdles. “It will be very interesting who is going to make determination, and how is it going to be determined that it’s a deductible item or not.” He laughed at how confusing it could be if accountants are ultimately the ones to decide.
Expanded Employer Student Loan Repayment Benefits
Student loan borrowers haven’t had much relief since Biden-era policy attempts at forgiveness were blocked in court, and the Trump administration hasn’t signaled offering any. However, there is a promising provision for those with student loans in the BBB — it extends employer-paid student loan assistance as a tax-free benefit.
Ringbauer said, “A lot of companies are looking to do that and give extra money to their employees.”
But he also warned of potential inequity that could push some people to take on student loan debt just to get the benefit.
Charitable Deductions Without Itemizing
The bill proposes bringing back a COVID-era benefit that allows charitable deductions, even for those who don’t itemize.
“For people who are not itemizing, that could [be a] benefit,” Ringbauer said. He emphasized that good planning, such as “rolling up multiyear worth of charitable donation into a single year,” can make a real difference.
Bonus Depreciation for Business Owners
For entrepreneurs, the bill includes an extended 100% bonus depreciation on qualifying business purchases.
“They’re going to roll out the bonus depreciation and so forth, so that reduces your taxable income,” Ringbauer noted.
Big Wins for the Well-Off
The real winners of this bill, however, are those already in higher income brackets, as well as entrepreneurs and corporations. Some of the provisions supporting these earners include:
- No limitation on state and local tax deductions for corporations
- No increased tax rate for individuals in the highest tax bracket
- No increase to the stock buyback excise tax rate
- A permanent increase to the estate and gift tax exclusion to $15 million for taxable years beginning after Dec. 31, 2025. This is also indexed for inflation.
Be Proactive, Not Passive
Ringbauer’s biggest piece of advice is to talk with an accountant or financial planner pronto, and not to wait until tax season to find out how the bill affects you. “Some of these changes are retroactive to Jan. 1, 2025,” he said. “You cannot turn back time on Dec. 31 … The ship has sailed.”
Whether you’re a salaried employee, a small-business owner or somewhere in between, Ringbauer urged everyone to seek guidance. Those with the ability to reallocate or shift their income or assets may be able to get the most benefits from the tax provisions.
As the bill’s fate hangs in the balance of the legislative process, one thing is clear: For some Americans, the changes may offer real relief, but only if they’re prepared to plan.
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