How Much the Big, Beautiful Bill Act Saves You
Bottom Line: Understanding tax law is complicated. Discussing changes in tax law universally is too. With that said, based on the average tax filer by income level I can provide average estimated tax savings by income level in President Trump’s recently signed One Big Beautiful Bill Act. The breakout not only provides an idea of what you might save in taxes, it also tells a specific story about who benefits most from the tax changes enacted on Independence Day, but that were made retroactive to January 1st of this year.
Income Level:
Estimated Tax Savings (per tax filer):
Reason:
Under $35,000
$650
Tips deduction, Senior deduction
$35,000-$50,000
$1,450
Tips deduction, Overtime deduction, Child tax credit, Senior deduction, Auto loan deduction
$50,000-$100,000
$1,750
Tips deduction, Overtime deduction, Child tax credit, Senior tax deduction, Auto loan deduction, SALT deduction
$217,000-$318,000
$3,700
Child tax credit, Auto loan deduction, SALT deduction
$318,000-$1.1 Million
$3,600
Auto loan deduction, SALT deduction (phased out)
$1.1 Million+
$1,750
Auto loan deduction, SALT deduction (heavily phased out)
Again, these are averages so your personal potential tax benefit is unlikely to be precisely that number, however likely should be able to provide you with an idea of your net income tax savings from the recently signed law. Consulting your tax preparer is likely the best way for you to discern how much the changes stand to save you.