The One Big Beautiful Bill Act has stirred up plenty of conversation. Financial expert Suze Orman recently detailed some of its key benefits on her "Women & Money" podcast.
While she acknowledges there are many parts of the bill she hates, she encourages her listeners to focus on the practical perks that can help you keep more of your money or save on taxes.
Here's a breakdown of some important highlights.
Don't Miss:
- Would You Have Invested in eBay or Uber Early? The Same Backers Are Betting on This Vacation Home Platform
- ‘Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can invest today for just $0.30/share.
Expanded Child Tax Credit
One of the standout features of the bill is the expanded child tax credit, which Orman highlights as a vital lifeline for parents raising children under 17.
"Right now, the child tax credit gives you up to $2,200 per child," she explains. Even if you owe no taxes, up to $1,700 of that amount is refundable — meaning if your tax bill is zero, the IRS will still send you a check for that portion, rather than just reducing what you owe.
The credit phases out for higher earners — starting at $200,000 modified adjusted gross income for singles and $400,000 for married couples filing jointly. Importantly, the child must be a U.S. citizen living with you for more than half the year.
"Do not leave money on the table," Orman advises, encouraging parents to claim this benefit if eligible.
Trending: Named a TIME Best Invention and Backed by 5,000+ Users, Kara's Air-to-Water Pod Cuts Plastic and Costs — And You Can Invest At Just $6.37/Share
Up to $10,000 Deductible on Personal Car Loans
Another notable perk is the new deduction for interest on personal auto loans. "You can now deduct up to $10,000 per year in interest on a personal auto loan as long as – there's always a catch, isn't there — the car is assembled in the United States," Suze notes.
This deduction applies only if the loan is in your name and the vehicle isn't leased or used for business purposes.
This benefit is good through 2028, giving car buyers a significant tax break if they finance a qualifying vehicle. Orman cautions, "Just ask, does this car qualify or not," to make sure you're taking advantage of this opportunity.
Tax-Free Tips: Up to $25,000 Exempt From Federal Income Tax
For workers relying on tips, such as servers or hairdressers, the bill offers a new exemption on tip income. Up to $25,000 in tips can now be excluded from federal income taxes annually. Orman calls this "one of the biggest tax breaks you're gonna ever see," but stresses the importance of accurate record-keeping.
"This really is a gift," Orman says, but reminds tip earners to track their tips, report everything honestly, and file taxes carefully. This exemption phases out for singles earning more than $150,000 and married couples filing jointly above $300,000.
Note that this only applies to federal income tax; some states are considering similar exemptions, while others still tax tip income.
What This Means for You
Orman isn't the first to say she dislikes this new legislation, but if it's happening, she says you might as well take advantage of it. "You first have to be able to take advantage of the things that you can take advantage of and not waste money," she says.
The bill's various benefits mostly expire in 2028, coinciding with a new presidential term, but until then, Orman says there are several smart moves taxpayers can make to boost their bottom line.
Read Next: Kevin O'Leary Says Real Estate's Been a Smart Bet for 200 Years — This Platform Lets Anyone Tap Into It
Image: Shutterstock
