Suze Orman: The 7 Parts of the Big Beautiful Bill That Are Good for Your Finances

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You’ve probably heard of the One Big Beautiful Bill Act (OBBBA) signed by President Donald Trump. While the legislation covers a wide range of areas, several provisions directly impact your money. Personal finance expert Suze Orman recently shared on her podcast the most important parts of the OBBBA that are good for your finances. Here are the seven provisions you should pay attention to and take advantage of.

Child Tax Credit

If you’re raising kids under 17, the child tax credit (CTC) is one of the biggest benefits to take advantage of. Right now, you can claim up to $2,200 per child. Even if you don’t owe federal income tax, up to $1,700 per child is refundable, which means the IRS will send you a check. 

But there are rules. “The credit starts phasing out when your modified adjusted gross income (MAGI) hits $200,000 if you’re single or $400,000 if you’re married filing jointly,” Orman said. Your child must also be a U.S. citizen, live with you for more than half the year and be your dependent.

Deductible Auto Loan Interest

For the first time ever, you can deduct up to $10,000 per year in auto loan interest if you buy and finance a car assembled in the United States. However, the loan must be in your name and meet specific requirements. Leased cars don’t qualify.

This benefit is available through 2028. “So if you’re buying a car and financing it, please make sure you qualify. Just ask, does this car qualify or not?” Orman said.

Bonus Depreciation for Small Businesses

“If you are self-employed or you own a small business, I’m telling you this is your moment because you can now write off 100% of the cost of qualified business property in the year you buy it,” Orman said. “As long as it’s Jan. 19, 2025 or later, which is when you acquired it.”

This applies to things like computers, office equipment and even work-related vehicles. And the best part is that this deduction is now permanent. “That is more money in your pocket faster. But remember, personal assets don’t qualify. This is for business,” Orman added.

Qualified Business Income (QBI) Deduction

If you run a business such as a sole proprietorship, LLC, partnership or S-Corp, you may be able to deduct up to 20% of your qualified business income. The full deduction applies if your income is under $197,300 for single filers or $394,600 for married couples filing jointly. Above those levels, the deduction phases out once you hit $247,300 as a single filer or $494,600 for joint filers.

“This is huge for freelancers, gig workers, consultants and small business owners,” Orman said. This provision has also been extended through 2028.

Tax Break on Tip Income

Do you work in a job where tips are a big part of your income? Starting this year, you can exclude up to $25,000 in tips from federal income taxes each year. That’s $25,000 per tax return, not per person. So whether you’re single or married filing jointly, the maximum exemption is $25,000. But if you file as married separately, you don’t qualify at all.

“I need you to keep really immaculate records and report every penny of tips. And you need to know the income limits,” Orman added. The benefit phases out once you’re making $150,000 of MAGI or $300,000 if filing jointly. It completely ends once you’re making over $175,000 as a single or $350,000 married filing jointly.  

Overtime Income Deduction

If you’re a W-2 employee working overtime, you can now deduct some of that income from your taxes. For 2025 through 2028, you can deduct up to $12,500 in overtime pay if you’re single or $25,000 if you’re married filing jointly.

This deduction phases out once your income exceeds $150,000 for single filers and $300,000 for joint filers. If you’re married filing separately, you don’t qualify. “Remember, the deduction is temporary. And just like tips, it’s only good for four years,” Orman said.

Trump Accounts

If your child is born between Jan. 1, 2025 and Dec. 31, 2028 and is a U.S. citizen with a Social Security number, you’ll receive a one-time deposit of $1,000 from the Treasury. Deposits are scheduled to begin in July 2026. In addition, you can contribute up to $5,000 per year for each child under 18, regardless of their birth year. Contributions can come from anyone.

Orman emphasized the long-term value. Contributing $5,000 a year for 18 years adds up to $90,000 before any investment growth. “This is a great program,” she said. “You need to understand how to make the most of it,” she added.

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