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 2025, while most sweeping social program cuts are delayed until 2028. Learn more about what’s in the budget here.

Here’s a rundown of when the budget provisions that could most affect your household will begin:

Tax cuts and incentives

• Extension of the 2017 marginal tax rates: Trump’s 2017 tax cuts for individuals and corporations were set to expire at the end of the year, but have now been made permanent, effective immediately.
• State and Local Tax (SALT) cap increases: The SALT cap rises to $40,000, beginning in the 2025 filing year, but will revert back to $10,000 in 2028. 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 2017 — is made permanent. Starting in 2025, single filers can deduct an additional $750, while married couples can deduct $1,500. The additional deduction amounts will adjust to inflation beginning in 2026. The increases phase out for those with higher incomes.
• Standard deduction increase for seniors: Starting in 2025 and expiring after 2028,, those 65 and older who earn less than $75,000 annually can deduct an extra $6,000 ($12,000 for married couples) on top of the standard deduction.
• Child tax credit: Increases — and makes permanent — the child tax credit to $2,200 for the 2025 tax year. The credit amount adjusts for inflation moving forward.
• No taxes on tips: Tipped income under $25,000 per year will be tax-deductible starting with the 2025 filing year. The provision expires after 2028.
• No tax on overtime: Overtime pay can be deducted — up to $12,500 for individual filers or $25,000 for married couples filing jointly — beginning with the 2025 tax year. The provision phases out for those with income above $150,000 or $300,000 for couples. It ends in 2028.
• Auto loan interest exemption for new vehicles: Allows a deduction of up to $10,000 in interest on loans for new car purchases. Begins 2025 and sunsets in 2028.
• Home energy tax credits: End after Dec. 31, 2025.
• Electric vehicle tax credits: End Sept. 30, 2025.
• “Trump Accounts”: Babies born between Jan. 1, 2025 and Dec. 31, 2028 will be automatically enrolled in a “Trump Account” with a one-time $1,000 federal contribution.
• Section 179 deduction: Small businesses can write off 100% of equipment and certain commercial property costs in the first year, effective Jan. 19, 2025. It also raises the deduction cap on property expenses to $2.5 million, beginning Dec. 31, 2024.
• 1099-K reporting threshold restoration: Reverts the threshold for online sales reporting to $20,000 or 200 transactions per year, as it was before 2021. The provision is applied retroactively to 2022.

Social program cuts

• Medicaid work requirements: Recipients must verify 80 hours per month of work, school, work training or volunteering. States must implement the new requirements by Dec. 31, 2026.
• Supplemental Nutrition Assistance Program (SNAP) work requirements: Expands work requirements to able-bodied recipients, ages 18 to 64 (up from 54). The requirements include those with children older than 6. Timing isn’t clear, but changes may begin sometime this year.
• Medicaid cuts: Medicaid funding reductions begin in 2028. The Congressional Budget Office projects nearly $1 trillion in cuts over a 10-year period; it could leave some 11.8 million people losing health care coverage.
• SNAP cuts: Up to $230 million in SNAP food assistance cuts over 10 years, beginning in 2028.
• Affordable Care Act (ACA) rule changes: Tighter ACA enrollment rules roll out between 2025 to 2028, 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 immediately. The CFPB oversees the consumer finance industry.
• Current federal student loan borrower repayment plans: Existing income-driven federal student loan repayment plans will sunset by July 1, 2028. This includes forgiveness under these repayment plans.
• New repayment plan for student loan borrowers begins: Enrollment in a new Repayment Assistance Program begins July 1, 2026. It is an income-driven plan that requires a $10 minimum monthly payment for borrowers and extends the timeline for forgiveness to 30 years.
• Graduate PLUS loan program: Funding for Graduate PLUS loans program sunsets as of July 1, 2026. Lifetime borrowing for graduate studies is also capped.
• Parent PLUS loan program: Implements a $65,000 cap on Parent Plus loans as of July 1, 2026.

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.