HOW TO LOWER YOUR TAX BILL | Kiplinger’s Personal Finance – investment
The One Big Beautiful Bill Act brought a host of changes that could affect your 2025 tax return. We’ll show you how to make the most of them and get other breaks that reduce what you owe-or maximize your refund.
FILING your taxes as early as possible has always been a good idea. It’s the most effective way to thwart crooks from submitting a fraudulent return in your name, claiming a refund. And if you are due a refund, the sooner you file, the sooner you’ll have the money in your pocket.
This year, it’s even more important than usual to get a head start on preparing your return. As a result of legislation enacted in July 2025, known as the One Big Beautiful Bill Act (OBBBA), you’ll need to navigate a thicket of new provisions, covering everything from car loans to property taxes to an extra deduction for those 65 and older.
The good news is that thanks to the OBBBA, reductions in federal income tax rates that were included in the 2017 Tax Cuts and Jobs Act— and that were set to expire at the end of 2025—are now permanent, so taxpayers won’t face a tax hike in 2026. In addition, the OBBBA made permanent an enlarged estate tax exemption that was included in the TCJA. In 2026, estates worth up to $15 million, or $30 million for a married couple, won’t be subject to federal estate taxes. With an exemption of that size, the vast majority of taxpayers won’t have to worry about paying federal estate taxes at rates that range from 18% to 40%. The exemption will be adjusted annually for inflation; without congressional action, it would have dropped to about $7 million per person in 2026.
Along with extending TCJA provisions that are favorable for many taxpayers, the OBBBA contains several tax breaks, expiration dates and other changes that you might miss if you wait until the last minute to file. Here’s a look at provisions in the bill that could increase your 2025 refund or lower the amount you owe, along with other information to keep in mind as you prepare your return—including ways to make sure you get all the tax breaks you’re owed.
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