00:00A major component of the recently passed One Big Beautiful Bill Act is a significant tax overhaul,
00:07representing the largest tax cut bill in years.
00:11While the legislation passed the House and Senate, the question on many Americans' minds is,
00:17when will these tax changes actually impact my wallet?
00:21Simply put, many of the changes will be felt in 2025.
00:25But you might not fully notice them until you file your taxes next year.
00:30The most substantial part of the Act makes permanent the current individual tax rates,
00:35which were initially reduced under the 2017 Tax Cuts and Jobs Act during President Trump's first term.
00:43These changes, which will be noticeable when people file their taxes in April 2026,
00:48include an increased cap on state and local tax deductions.
00:52This means most people won't see a change in their income taxes next year.
00:57Rather, the bill prevents an increase in rates that would have occurred had the legislation not passed.
01:03However, the bill does include several new provisions designed to bring more immediate relief to specific groups of taxpayers.
01:10Additionally, the bill introduces a $25,000 limit for deductions on tipped income,
01:17though this phases out for higher earners.
01:20For drivers, up to $10,000 in auto loan interest can now be deducted,
01:25specifically for new cars assembled in the United States, with income phase-outs.
01:30Seniors over 65 will also see a new $6,000 deduction,
01:36a direct outcome of President Trump's pledge to eliminate taxes on Social Security benefits.
01:41Lastly, the popular child tax credit has been increased from $2,000 to $2,200.
01:48These targeted changes aim to provide relief to specific subsections of taxpayers,
01:54a key promise from the Trump campaign.
01:56Money expires...
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