What the 'Big Beautiful Bill' Means for Your Wallet
- Abram Rice Financial
- Aug 1
- 2 min read
Over the Fourth of July weekend, the “Big Beautiful Bill” sped through Congress—faster than a scene from Schoolhouse Rock! Skipping the usual red tape, it landed on the president’s desk before you could say "I'm just a bill.". But what does this mean for your finances? We dug through the fine print to highlight the stuff that actually matters to your money.
🔹 Taxes
Standard Deduction Increased: You can deduct more from your income before taxes—benefiting most taxpayers.
No Tax on Some Tips & Overtime: If you make under $150k (or $300k for couples), up to $25k in tips and $12.5k in overtime pay is tax-free.
Bigger SALT Deduction: The state/local tax deduction cap rises from $10,000 to $40,000 (through 2029).
Car Loan Interest Deduction: Deduct up to $10,000 in interest on new U.S.-made cars.
Senior Deduction: If you're over 65, you get an extra $6,500 deduction.
Estate Tax Break: You can now pass on $15 million tax-free to heirs (was $14M, and was set to drop).
Child Tax Credit: Goes up from $2,000 to $2,200 per child.
Children’s Savings Accounts: Kids under 8 get $1,000 per account (max $5,000 tax-free when used at 18).
Private School Credits: Families earning less than 3× their area's median income can get up to $5,000 in tax credits for private or homeschooling.
🔹 Spending Cuts
Medicaid Work Requirements: Adults ages 19–64 must work 80 hours/month to keep Medicaid. This may lower the number of people who qualify.
SNAP (Food Aid) Cuts: Federal support for food assistance will drop in 2028; states will need to cover more.
💡 Who Benefits Most?
Higher earners (those making over $58,000/year) are expected to benefit the most from these changes.
Lower earners may see fewer benefits and may lose support due to cuts in healthcare and food aid.
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