Inquiry concerning the tax rates for automobiles and residential properties that Belarusians will be mandated to pay in the year 2025.
The One Big Beautiful Bill Act (OBBBA), set to take effect in 2026, will bring significant changes to the U.S. Tax Code for individuals. Here's a summary of the key changes:
Key Changes
Tax Brackets and Rates
The federal income tax structure remains largely unchanged, with the top marginal rate staying at 37%. Tax brackets are frozen at 2017 levels to prevent bracket creep.
Child Tax Credit
The Child Tax Credit increases to $2,200 per child, with $1,700 being refundable. Children must have valid Social Security Numbers starting in 2026.
Estate and Gift Tax
The estate and gift tax exemption increases to $15 million per individual, indexed for inflation without a sunset provision.
Standard Deduction
The OBBBA makes the higher standard deductions from the TCJA permanent and slightly increases them for 2026: - Single filers and married filing separately: $15,750 - Joint filers: $31,500 (adjusted from earlier figures) - Heads of household: proportionate to joint filers
Alternative Minimum Tax (AMT)
The AMT exemption is made permanent at 2018 levels, indexed for inflation. The exemption phaseout thresholds return to 2018 levels, with a faster phaseout rate.
Itemized Deductions
The value of itemized deductions is capped at 35 cents per dollar for individuals in the 37% tax bracket.
SALT Deduction and Mortgage Interest
- The State and Local Tax (SALT) deduction limitation is raised to $40,000 in 2025 but will phase out by 2030.
- The mortgage interest deduction remains up to $750,000 of principal.
Senior Deduction
Individuals aged 65 and older can claim an additional $6,000 deduction until 2028.
Conclusion
These changes aim to provide tax relief while introducing new rules that may affect various groups differently. It is essential for individuals to assess how these changes will impact their personal financial planning.
For more information on specific tax changes, such as vehicle and property taxes, please refer to the guidelines provided by the relevant government agencies. Stay tuned for further updates on the OBBBA and its impact on individual taxation.
- The increase in the Child Tax Credit to $2,200 per child in 2026, coupled with the $1,700 being refundable, might bring a substantial effect on personal-finance planning for families with children.
- The OBBBA's introduction of an additional $6,000 deduction for individuals aged 65 and older until 2028 could significantly impact the personal-finance situation of senior citizens.
