Overview
- The state and local tax deduction cap rises to $40,000, reshaping the choice to itemize for many homeowners and higher‑tax state filers.
- Seniors 65 and older can claim an extra $6,000 deduction through 2028, with phaseouts beginning at $75,000 of modified AGI for individuals and $150,000 for joint filers.
- New child “Trump” accounts allow up to $5,000 in annual after‑tax contributions and include a $1,000 federal seed for births from 2025 to 2028, with first contributions permitted after July 4, 2026.
- Charitable deductions now face a 0.5% of AGI floor for itemizers, while non‑itemizers may take an above‑the‑line cash‑only deduction up to $1,000 ($2,000 for joint filers) excluding donor‑advised funds and private foundations.
- The federal estate and gift tax exemption is set permanently at $15 million per person, indexed for inflation, allowing married couples to transfer up to $30 million with proper planning.