George Kamel: 5 Impactful Changes Big Beautiful Bill Is Already Having on Your Wallet
Written by
Ashley Donohoe
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Cory Dudak
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Signed by President Trump on July 4, 2025, the One Big Beautiful Bill Act contains hundreds of pages addressing everything from federal programs and tax laws to national security and student loans. Rather than getting too deep into the details, it helps to focus on which specific changes are already impacting your family’s finances now or will do so in the coming months.
In a YouTube video, money expert George Kamel discussed five of the bill’s key changes that are broadly impacting Americans. Find out what relief or extra costs may apply to you.
1. Extended Broad Tax Relief
Kamel highlighted how the bill made several provisions of the Tax Cuts and Jobs Act of 2017 permanent. Examples include the retention of the 10% to 37% marginal tax rates, higher standard deduction amounts ($15,750 for single filers and $31,500 for joint filers in 2025) and an increased Child Tax Credit of $2,200 for each qualifying kid.
Plus, the Big Beautiful Bill added a tax perk for eligible Americans who are at least age 65 and don’t exceed certain income limits. According to the IRS, they can get a $6,000 bonus standard deduction per person through 2028.
2. Tip and Overtime Tax Breaks
If you’re an hourly worker or make some income through tips, two new tax breaks might leave you with extra money. Through 2028, you could qualify for tax deductions on your tips and overtime pay, and you don’t need to itemize.
But Kamel explained, “This change only applies to the first $25,000 you make in tips and the first $12,500 you make in overtime pay as an hourly worker, which means once you hit $12,501, Uncle Sam is going to enter the chat.”
To deduct tips, you’ll likely need to work in one of the eligible occupations listed in this U.S. Treasury document. Additionally, if you exceed the adjusted gross income limits of $150,000 for single filers and $300,000 for joint filers, both potential deductions will start to phase out.
3. Free Money for Babies
Another provision of the Big Beautiful Bill offers $1,000 of free money in a U.S. Treasury-funded investment account to all U.S. citizens born from 2025 through 2028.
A White House release noted that parents can also open this account for other children under age 18, but without the free money perk. Until your child is 18, you can make $5,000 in annual after-tax contributions, while your employer can contribute $2,500. However, this account lacks other features.
“Unlike a 529 plan or an education savings account, these so-called ‘Trump Accounts’ have practically no tax advantages,” said Kamel. “You fund them with after-tax dollars, and all growth gets taxed when you withdraw it, regardless of how you use the money.”
4. New Student Loan Policies
If you’re in college or helping your child pay for their education, new student loan policies may affect your finances. For example, Grad PLUS loans won’t be available to new borrowers as of July 2026, and Parent PLUS loans will be limited to $20,000 annually and $65,000 per lifetime for each student. Some other loans will also have borrowing caps.
Borrowers taking out loans in July 2026 and beyond must choose from a smaller selection of repayment plans. First, there’s a standard plan with payments based on 10- to 25-year terms. The second option is the repayment assistance plan, which calculates payments based on 1% to 10% of the borrower’s adjusted gross income, with forgiveness possible after 30 years.
Kamel also noted the increased flexibility for how you can use 529 plan funds, which can now cover expenses like certain workforce training programs, tutoring and certain therapies.
5. Car Market Updates
A few changes may impact you if you’ve bought a car this year or plan to over the next few years.
First, electric vehicle purchases made after September 2025 will no longer qualify for the popular $7,500 federal tax credit. However, you can still check if your state offers tax relief.
There’s also a new car loan interest deduction of up to $10,000 per year for new U.S.-assembled vehicles, such as the Honda Accord, Jeep Wrangler and Tesla Model Y. This deduction runs through 2028 and requires meeting other criteria, including income and vehicle weight limits. Kamel wasn’t a big fan of this one since he discourages financing cars.
He explained, “So, I’m giving this part of the Big Beautiful Bill a big beautiful thumbs down because it incentivizes going into debt for a depreciating asset, which is always dumb.”
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