Introduction: Curious how the 2025 tax law shake‑up affects your refund? You’re not alone. With the “One Big Beautiful Bill” (OBBBA) now signed into law, taxpayers nationwide are scrambling for clarity. In this article, a seasoned CPA shares practical insights into headline provisions—Child Tax Credit, SALT cap, tip/overtime deductions—and explains what it all means for your wallet.
What’s New in Child Tax Credit for the 2025 Tax Law?
Explanation: The 2025 law enhances the Child Tax Credit (CTC), offering more money to families.
- $2,200 per child (under 17) through 2028, up from $2,000
- Fully refundable up to $1,700, benefiting families with little tax liability
- Phase‑out starts at $200K (single) and $400K (joint)
Example: The Smiths (AGI $75K) with two kids now get $4,400 instead of last year’s $4,000—nice boost!
Everything You Need to Know About the 2025 Child Tax Credit Reforms Under Trump
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