How does Trump's one big beautiful bill impact you?
Complete guide for individuals, small businesses, and entrepreneurs in 2025
Summary of the one big beautiful bill (OBBBA)
The one big beautiful bill (OBBBA), signed by President Trump on July 4, 2025, is a sweeping tax reform that affects millions of taxpayers. It introduces new tax benefits, deductions for small businesses, the creation of savings accounts for children ("Trump accounts"), and cuts to social programs.
This nearly 900-page law extends, modifies, or eliminates several previous measures. In this article, LimitlessTax explains what it means for you.
Key tax changes for individuals
Child tax credit
- Increased from $2,000 to $2,200 per child.
- Indexed to inflation.
- Partially refundable up to $1,700.
Deductions for tips and overtime
- New federal tax-deductible income for tips and overtime until 2028.
- Applies to earnings from gratuities and extra hours.
- Limit: up to $25,000 per year.
Standard deduction and SALT
- Extension of the 2017 TCJA provisions.
- Temporary SALT deduction cap raised to $40,000.
- Limit: up to $25,000 per year.
Benefits for small businesses and entrepreneurs
QBI deduction (pass-through income)
- The 20% deduction becomes permanent.
- Applies to more than 26 million small businesses.
Startups and QSBS
- Asset threshold raised to $75 million.
- Up to $15 million in gains exempted.
- Tiered exemptions at 50%, 75%, and 100% over 3 to 5 years.
Trump accounts: children's tax-free savings
- $1,000 automatically for every child born between 2025 and 2028.
- Additional yearly deposits up to $5,000.
- Grows tax-free until age 18.
Social program cuts: what could affect you
Medicaid and SNAP
- Mandatory new work requirements.
- Coverage reduced in several states.
Green energy programs
- IRA tax incentives phased out over time.
Projected economic impact
- The law is expected to add between $2.8 and $3.4 trillion to the federal deficit over the next decade.
- Some estimates show a $4 to $5 trillion reduction in government revenue (Tax Foundation).
Summary table: how does the OBBBA affect you
| Profile | Main benefit / risk |
|---|---|
| Hourly or tipped worker | Lower federal tax burden |
| Small business owner | Permanent 20% deduction |
| Startup founder | QSBS exemption up to $15M in gains |
| Parents of newborns | Guaranteed savings with Trump account |
| Medicaid/SNAP recipients | Harder access and reduced program coverage |
Get ready today with LimitlessTax
At LimitlessTax, we help you:
- Maximize tax deductions under the new OBBBA.
- Create the best strategy for your Trump account.
- Stay compliant with new tax and labor regulations.
- Protect your income from future legal changes.
Frequently asked questions
- Who qualifies for the Trump account?
- Every child born in the U.S. between January 1, 2025 and December 31, 2028.
- When do deductions for tips and overtime begin?
- From tax year 2026 through 2028.
- Can I apply for QSBS benefits if I already own a startup?
- Yes, if your company meets the updated asset and structure requirements.
