How does Trump affect your taxes?
Understand the potential tax implications under new policies and how to prepare.
The one big beautiful bill (OBBBA), signed by President Trump on July 4, 2025, is a sweeping tax reform that impacts millions of Americans. It introduces new deductions, savings programs, and changes to social benefits.
This guide explains what the law means for individuals, small businesses, and entrepreneurs — and how to prepare.
Summary of the one big beautiful bill (OBBBA)
The OBBBA is a nearly 900-page tax reform law that extends, modifies, or eliminates several existing tax provisions. While it creates new benefits, it also reduces funding for certain social programs.
At Limitless Tax, we break down what really matters to 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
- Tips and overtime income become federally tax-deductible
- Applies until 2028
- 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 applies through 2028
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 increased to $75 million
- Up to $15 million in gains exempt
- Tiered exemptions of 50 %, 75 %, and 100 % after 3–5 years
Trump accounts: tax-free savings for children
- $1,000 automatically for each child born between 2025 and 2028
- Additional yearly contributions up to $5,000
- Grows tax-free until age 18
Social program cuts: what could affect you
Medicaid and SNAP
- New mandatory work requirements
- Reduced coverage in multiple states
Green energy incentives
- IRA clean-energy tax credits phased out gradually
Projected economic impact
- Estimated $2.8–$3.4 trillion added to the federal deficit over 10 years
- Potential $4–$5 trillion reduction in government revenue (Tax Foundation)
Summary: how does the OBBBA affect you?
- Hourly or tipped workers: lower federal tax burden
- Small business owners: permanent 20 % QBI deduction
- Startup founders: QSBS exemptions up to $15M
- Parents: guaranteed savings through Trump accounts
- Medicaid / SNAP recipients: stricter access rules
Get ready today with Limitless Tax
At Limitless Tax, we help you:
- Maximize deductions under the OBBBA
- Build the right strategy for Trump accounts
- Stay compliant with new tax regulations
- Protect your income from future changes
👉 Book a consultation with Limitless Tax
Frequently asked questions
Who qualifies for the Trump account?
Children born in the U.S. between January 1 2025 and December 31 2028.
When do deductions for tips and overtime begin?
They apply from tax year 2026 through 2028.
Can existing startups benefit from QSBS?
Yes, if they meet the updated asset and structural requirements.
