In July 2025, a major new law called the One Big Beautiful Bill was passed at the federal level. This law includes a wide range of changes to taxes, savings plans, and government programs. Whether you’re raising a family, running a business, or enjoying retirement, it’s important to know how the One Big Beautiful Bill might affect your finances, especially if you live in New York.
1. Bigger Tax Breaks for Families
One of the biggest parts of the new law is a higher Child Tax Credit. Starting in 2026, families can get up to $2,200 per child. This credit helps reduce the amount of taxes you owe and could even result in a bigger refund.
New York State also has its own child tax credit, which offers up to $1,000 per child under age 4, as well as $500 for children ages 4–16, for families making under $170,000. The two credits work together, so New York families may see significant savings during tax season.
The bill also adds new tax deductions and credits that apply to:
- Tips and overtime pay (no longer taxed)
- Car loan interest (up to a certain amount)
- Child care expenses, with higher limits than before
2. A New Way to Save: Trump Accounts for Kids
The bill introduces a new savings tool called a Trump Account. These accounts are designed to help families save money for their children’s future. Here’s how they work:
- The government deposits $1,000 into each account when it’s opened
- Families can contribute up to $5,000 per year
- Money grows tax-free and can be used for education, training, or starting a business
If you already have a New York 529 college savings plan, this is a great time to review your options and possibly add a Trump Account as part of your savings strategy.
3. Extra Tax Help for Seniors
If you’re 65 or older, the One Big Beautiful Bill adds an extra $6,000 standard deduction through 2028. This means you can reduce the amount of income you’re taxed on, even if you don’t itemize. It’s a straightforward way to lower your federal tax bill during retirement, giving you more flexibility with your income.
In New York, that federal deduction comes alongside several state-level tax benefits designed to support retirees. Social Security income isn’t taxed at the state level, and retirees can exclude up to $20,000 per person in pension or IRA income from their New York state taxes. When combined, these policies can significantly reduce your overall tax burden and help your retirement savings go further.
4. Changes to Government Benefits
To help pay for all the tax cuts, the bill includes cuts to some safety net programs like Medicaid and SNAP (food assistance). It also adds more rules, such as:
- Work requirements for some benefits
- Regular eligibility checks
- New limits on how long some aid can last
If you or someone in your family relies on these programs, it’s important to stay informed. These changes could affect coverage or timing.
What You Can Do Now
Here are a few steps New York families can take to prepare for the One Big Beautiful Bill:
- Review your tax plan: Make sure you’re taking advantage of the new credits and deductions.
- Look into Trump Accounts: See if opening one fits your family’s savings goals.
- Check benefit eligibility: If you use Medicaid or SNAP, stay updated on rule changes.
- Talk to a financial advisor: The professionals at DeSantis, Kiefer, Shall & Sarcone can help you make the most of these changes while protecting your long-term goals.
Prepare Your Finances for Impacts by the One Big Beautiful Bill in New York
Laws like the One Big Beautiful Bill can change how we save, spend, and plan for the future. While some parts bring more savings and flexibility, others may reduce support for certain programs. By understanding what’s changed and planning ahead, you can make smart decisions for your family or retirement.
If you have questions about how this new law affects you, we’re here to help. At DeSantis, Kiefer, Shall & Sarcone, we’ll help you adjust your financial plan so it stays strong, no matter what laws come next.
