When President Donald Trump signed the One Big Beautiful Bill (OBBB) into law on July 4, 2025, it was one of the biggest overhauls of the U.S. tax code in nearly a decade. Even though it’s not tax time yet, this bill introduces some entire lists of benefits you can start planning for now, especially if you generally take the standard deduction.
Here are the biggest changes and how they can deposit up to $7,500 in your bank account.
A turning point for standard deduction filers
In the past, non-itemizers had few ways to reduce taxable income when they used the standard deduction. But OBBB opens doors. As tax expert Brian Gray demonstrates, with the Tax Cuts and Jobs Act of 2017, there were few planning options for non-itemizers. That’s history.
Charitable deductions for everyone
In the past, charitable giving could be deducted only by itemizers. Now, courtesy of OBBB:
- You can deduct $1,000 per person or $2,000 per couple.
- It’s above-the-line, which lowers your adjusted gross income, so you’ll be in line for more tax savings.
- It starts in 2026, giving you time to plan your donation and giving strategy.
It’s a return—and an expansion—of the popular pandemic-era deduction that many families had grown accustomed to relying on.
Auto loan interest deduction returns
Americans can deduct interest on a personal auto loan for the first time since 1986—without itemizing.
- You can deduct up to $10,000 of interest from 2025 through 2028.
- The car must be new, U.S.-assembled, and used personally.
- There are income limits, so check carefully for eligibility.
This advantage could alter the way families choose between leasing and purchasing a car.
Increased benefits for families
Two notable provisions are designed to assist families and caregivers.
1. Dependent care flexible spending account (DCFSA):
- Annual contribution limits rise to $7,500 (or $3,750 for married filing separately).
- Pre-tax funds can be used for child care or care for adult dependents.
- Enrollment begins early in 2025 for the 2026 tax year.
It’s the first permanent expansion in decades.
2. Child and dependent care credit (CDCC):
- Credit rate increases of 35% to 50% on eligible expenses.
- Pays $3,000 for one child, $6,000 for two or more.
- Income phaseouts now extend up to $206,000 for married couples.
Experts project that nearly 4 million families will qualify for a bigger credit, many for an additional $900 or more.
What should you do now?
Tax professionals recommend earlier planning:
- Make early gifts to qualify for charitable deductions.
- Verify income and phaseout ranges if you are at or close to the levels.
- Contribute as much as possible to retirement savings or FSAs in order to lower taxable income and qualify for credits.
According to Brian Schultz, CPA, “These new provisions reward proactive taxpayers. A little planning can go a long way.
Bottom Line: Trump’s “One Big Beautiful Bill” could make a big and beautiful difference to millions of Americans—families, especially. And the best part? You don’t need to itemize to take advantage of these benefits.
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