Tax Changes in the One Big Beautiful Bill Act Nashua, NH Resident Looks to Understand How She Will Be Affected
The One Big Beautiful Bill Act was just passed in 2025. This has some important tax changes that will affect most people in some way. The standard deduction saw an increase in the bill to $15,750 for single filers and $31,500 for married couples filing jointly. The Child Tax Credit also increased, moving to $2,200. The 2017 Tax Cuts and Jobs Act, which was set to expire this year, was made permanent. There were also a number of temporary deductions included in the One Big Beautiful Bill Act. These include a deduction of up to $25,000 on tip income, no tax on overtime capped at $12,500, and an additional senior deduction of $6,000.
A Nashua resident has been hearing a lot about the recently passed One Big Beautiful Bill Act and how it would affect taxes. However, she was unsure about how this would impact her directly. She reached out to the Merrimack Tax Associates team for advice and a better understanding of how she would be affected.
Other Changes to Tax Benefits Under the One Big Beautiful Bill Act
New car buyers that are taking out a loan can deduct up to $10,000 of qualified interest on the loan. This only applies if the vehicle is a final assembly in the United States and phases out for higher income earners. Clean vehicle credits will be eliminated for any vehicle that is purchased after September 30, 2025. The tax credits for energy efficient home improvements will also be eliminated after 2025 under the One Big Beautiful Bill Act.
Effective in 2026, how you claim charitable contributions on your taxes will be changed also. For those filers taxing the standard deduction, charitable deduction will be capped at $1,000 for single filers and $2,000 for married couples filing jointly. When itemizing your deductions for charitable contributions, you will be required to reduce your deduction by 0.5% of your contribution base, which is generally your adjusted gross income.
After speaking with Merrimack Tax Associates, the Nashua resident now has a better understanding of how the One Big Beautiful Bill Act will affect her personally.