Inside the ‘One Big Beautiful Bill’: Key Individual Tax Changes Passed by the House
The “One Big Beautiful Bill” represents a comprehensive overhaul of the individual‐tax code, extending many of the temporary provisions enacted in 2017 and introducing new relief for American taxpayers. Without taking sides in the broader policy debate, this article outlines the key individual‐tax changes approved by the House of Representatives and concludes with the bill’s current status and the potential for further modification as it moves through the Senate.
Key Individual‐Tax Changes Passed by the House
- Adjusted Income‐Tax Brackets
The House makes permanent the seven‐bracket structure (10% through 37%) but raises and reindexes the income thresholds. For married joint filers, the 12% bracket now applies up to $100,550 (versus $94,300 under current law), with the top 37% bracket beginning above $767,150. These thresholds will be adjusted annually for inflation beginning January 1, 2026 . - Higher Standard Deduction
Under current law, the standard deduction is $29,200 for joint filers, $21,900 for heads of household, and $14,600 for single filers. The House bill raises these amounts to $32,000, $24,000, and $16,000 respectively, effective for tax years beginning January 1, 2025, through December 31, 2028 . - Expanded Child Tax Credit
The maximum child tax credit remains $2,000 per qualifying child, but the refundable portion is increased to $2,500 for 2025–2028 (with $1,700 indexed for inflation) and then reverts to $2,000 in 2029. The $500 credit for non‐child dependents is retained . - Permanent AMT Relief
The bill makes permanent the higher alternative‐minimum‐tax exemptions ($133,300 for joint filers; $85,700 for individuals) and phase‐out thresholds, which otherwise were set to expire at the end of 2025. Inflation adjustments continue under the new law . - Raised SALT Deduction Cap
The State and Local Tax deduction cap increases from $10,000 to $40,000 for joint filers (with a $15,000 cap for separate filers). A phase‐out applies to taxpayers with incomes above $500,000 (or $250,000 for joint filers) . - Mortgage Interest Deduction
The House proposal makes permanent the current $750,000 cap on deductible mortgage debt (with no deduction for home‐equity loans), which was scheduled to expire at the end of 2025 . - New Deduction for Seniors
Taxpayers age 65 and older may claim an above‐the‐line deduction of $4,000, phasing out for married joint filers with modified AGI above $150,000 (and $75,000 for other filers). This special deduction expires at the end of 2028 .
Conclusion: Current Status and Next Steps
As of May 22, 2025, the House of Representatives has passed the bill by a narrow margin, codifying the individual-tax changes summarized above . The legislation now advances to the Senate, where it will undergo committee review, floor debate, and potential amendment. Senate hearings may reshape key provisions—particularly around the SALT cap, credit levels, and phasing dates—before a final vote and eventual signature by the President. Gemini Accounting Services is monitoring the bill closely and will provide updates as new developments occur.