NerdWallet's Smart Money Podcast SALT Cap Raised, Clean Energy Credits Ending: Adapt Your Finances to the “Big, Beautiful Bill”
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Jul 17, 2025 Anna Helhoski, a senior news writer, delves into the implications of a major budget bill on taxes, detailing changes like new car loan deductions and clean energy credit rollbacks. She also discusses how these shifts may impact future tax strategies. Personal finance expert Kate Ashford then offers advice on managing finances while on disability, covering key topics like SSDI vs. SSI, saving strategies, and the emotional aspects of financial transitions. Essential insights for adapting to life’s changes and navigating financial challenges abound!
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Permanent Tax Cuts Favor Wealthy
- The Tax Cuts and Jobs Act of 2017 has been made permanent, extending major tax cuts especially benefiting high-income earners and corporations.
- Seniors earning $75,000 or less get an additional $6,000 temporary deduction on top of the standard deduction.
Temporary SALT Deduction Increase
- The SALT deduction cap increases temporarily to $40,000 starting in the 2025 tax year but will revert back in 2029.
- This change mostly affects taxpayers who itemize and phases out by income.
New Short-Term Tax Deductions
- New tax deductions are introduced: no tax on up to $25,000 tipped income, no tax on up to $12,500 overtime income, and up to $10,000 deduction on car loan interest for new U.S.-assembled cars.
- These deductions do not require itemizing but are short-term, available only through 2028.