Everything You Need to Know About Trump’s New 2025 Tax Plan
Your simple guide to the new tax law’s benefits, who it helps, and how Otterz can maximize your savings.
There’s been a lot of buzz lately about President Trump’s newly signed tax bill, officially called the One Big Beautiful Bill Act (OBBBA).
Whether you’re a small business owner, freelancer, or simply trying to make sense of your personal taxes, this new legislation could have a big impact on your finances starting tax year 2025.
Here’s a simple, easy-to-follow breakdown of what’s changing, who benefits, and how you can prepare.
What Is the New Trump Tax Plan?
In short, the new tax law makes many of the 2017 Tax Cuts and Jobs Act provisions permanent, while also introducing new deductions and tax breaks designed to boost take-home income for specific groups.
Here are some of the major changes:
1. Permanent Tax Cuts:
The individual tax rate cuts from 2017 are now permanent, meaning lower tax rates for most income levels, with brackets ranging from 10% to 37%. No more worrying about them expiring in a few years.
2. Bigger Standard Deduction:
For the 2025 tax year, the standard deduction rises:
● $16,000 for single filers
● $32,000 for married couples filing jointly
● $24,000 for heads of households
This means more of your income is automatically tax-free, simplifying taxes for many households.
3. Higher SALT Deduction Cap:
If you live in a high-tax state, you’ll love this one. The SALT (State and Local Tax) deduction cap jumps from $10,000 to $40,000 for 2025, offering relief for many middle and high-income earners.
4. New Deductions for Tipped & Overtime Workers:
Under the “No Tax on Tips” provision, workers in industries like restaurants, hospitality, and salons can exclude up to $25,000 in tips from taxable income. Overtime pay can also qualify for deductions, putting more money directly in workers’ pockets.
5. Extra Breaks for Seniors:
If you’re over age 65, you’ll now get an additional deduction of $4,000 per person—helping retirees keep more of their retirement income.
6. Auto Loan Interest Deduction:
Buying a car? You can now deduct up to $10,000 in auto loan interest—but only if the vehicle is assembled in the U.S.
7. Child Savings Accounts:
Families with children can now access a new type of savings account, with up to $1,000 in annual tax credits and contributions up to $5,000 per year. These accounts are designed to encourage long-term saving for education and more.
Who Benefits the Most?
This bill largely favors:
● Middle and high-income families
● Tipped workers and hourly employees
● Seniors over 65
● Families with children
● People in high-tax states (thanks to the SALT deduction increase)
What You Need to Watch Out For?
While these tax cuts offer relief for many, there are concerns too:
● The national debt is expected to grow by several trillion dollars over the next decade.
● Some low-income families may see reduced support in programs like Medicaid or food assistance.
● Not all deductions apply to everyone—knowing where you qualify is key.
How Otterz Can Help You Navigate These Changes!s
Let’s face it—tax laws are confusing, and this one is no exception. But you don’t have to figure it all out on your own.
At Otterz, we specialize in helping business owners, freelancers, and everyday taxpayers make the most of new tax laws like this one. Here’s how we can help:
● Personalized Tax Planning: We’ll analyze exactly how the new tax law affects you and your business.
● Maximize Deductions: From SALT to tips to auto loan interest, we’ll help you unlock every tax break you’re entitled to.
● Future-Proof Strategies: Our team will create a custom plan to help you benefit from these changes now—and prepare for whatever comes next.
● Stress-Free Filing: No more tax headaches. We handle everything, so you can focus on what you do best.
Ready to Take Control of Your Taxes?
Let us simplify this for you.
Schedule your free tax review with Otterz today—and start 2025 with confidence and clarity.
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