When do ‘big, beautiful’ megabill changes go into effect?

By Anna Helhoski NerdWallet The GOP-led Congress is walking a political tightrope with the rollout of key provisions in Trump s one big beautiful bill passed last week With next year s midterms looming strategic timing is everything tax breaks to households and corporations begin in while most of sweeping social activity cuts are delayed until Learn more about what s in the budget here Here s a rundown of when the budget provisions that could the bulk affect your household will begin Tax cuts and incentives Extension of the marginal tax rates Trump s tax cuts for individuals and corporations were set to expire at the end of the year but have now been made permanent effective promptly State and Local Tax SALT cap increases The SALT cap rises to beginning in the filing year but will revert back to in The SALT deduction is only available to taxpayers who itemize Increased standard deduction The current standard deduction which was doubled by Trump s tax cuts in is made permanent Starting in single filers can deduct an additional while married couples can deduct The additional deduction amounts will adjust to inflation beginning in The increases phase out for those with higher incomes Standard deduction increase for seniors Starting in and expiring after those and older who earn less than annually can deduct an extra for married couples on top of the standard deduction Child tax credit Increases and makes permanent the child tax credit to for the tax year The credit amount adjusts for inflation moving forward No taxes on tips Tipped income under per year will be tax-deductible starting with the filing year The provision expires after No tax on overtime Overtime pay can be deducted up to for individual filers or for married couples filing jointly beginning with the tax year The provision phases out for those with income above or for couples It ends in Auto loan interest exemption for new vehicles Allows a deduction of up to in interest on loans for new car purchases Begins and sunsets in Home potency tax credits End after Dec Electric motorcycle tax credits End Sept Trump Accounts Babies born between Jan and Dec will be automatically enrolled in a Trump Account with a one-time federal contribution Section deduction Small businesses can write off of equipment and certain commercial property costs in the first year effective Jan It also raises the deduction cap on property expenses to million beginning Dec -K reporting threshold restoration Reverts the threshold for online sales reporting to or transactions per year as it was before The provision is applied retroactively to Social project cuts Medicaid work requirements Recipients must verify hours per month of work school work training or volunteering States must implement the new requirements by Dec Supplemental Nutrition Assistance Campaign SNAP work requirements Expands work requirements to able-bodied recipients ages to up from The requirements include those with children older than Timing isn t clear but changes may begin sometime this year Medicaid cuts Medicaid funding reductions begin in The Congressional Budget Office projects nearly trillion in cuts over a -year period it could leave specific million people losing fitness care coverage SNAP cuts Up to million in SNAP food assistance cuts over years beginning in Affordable Care Act ACA rule changes Tighter ACA enrollment rules roll out between to depending on the specific provision Consumer protection cuts Funding cuts for the Consumer Financial Protection Bureau CFPB Funding for the CFPB is cut in half effective this instant The CFPB oversees the consumer finance industry Current federal novice loan borrower repayment plans Existing income-driven federal novice loan repayment plans will sunset by July This includes forgiveness under these repayment plans New repayment plan for candidate loan borrowers begins Enrollment in a new Repayment Assistance Venture begins July It is an income-driven plan that requires a minimum monthly payment for borrowers and extends the timeline for forgiveness to years Graduate PLUS loan activity Funding for Graduate PLUS loans scheme sunsets as of July Lifetime borrowing for graduate studies is also capped Parent PLUS loan campaign Implements a cap on Parent Plus loans as of July More From NerdWallet K Trump Accounts for Kids How Do They Stack Up Finance Writers Share Regrets From Prime Days Past What to Buy and Skip on Prime Day July - Anna Helhoski writes for NerdWallet Email anna nerdwallet com Twitter AnnaHelhoski The article When Do Big Beautiful Megabill Changes Go Into Effect originally appeared on NerdWallet