1 X Obbba Summary

One Big Beautiful Bill Act (OBBBA) — Key Provisions for EA Exam Exam: EA — Enrolled Agent Chapter: Chapter 1 — Tax Return Basics Law: One Big Beautiful Bill Act, signed July 4, 2025 Testable: 2026–2027 exam cycle (tests Dec 31, 2025 law) Last Updated: 2026-06-26 --- ## Key Takeaways - The OBBBA made virtually all TCJA individual tax provisions permanent — they no longer expire or sunset. - The 2025 standard deduction is $15,750 single / $31,500 MFJ / $23,625 HOH (OBBBA-enhanced amounts). - The QBI deduction (Section 199A) is now permanent. - The estate and gift tax exemption is $15M per person (indexed to inflation), effective 2025. - A new senior deduction bonus of $6,000 per qualifying individual age 65+ is available 2025–2028. --- ## Background: Why OBBBA Matters Under the Tax Cuts and Jobs Act (TCJA, 2017), most individual tax provisions were scheduled to expire ("sunset") after December 31, 2025. This would have caused: - Tax brackets to revert to pre-2018 rates - Standard deduction to drop by roughly half - QBI deduction to disappear - Estate exemption to fall from ~$14M to ~$7M The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, permanently extended all major TCJA individual provisions. The sunset risk is eliminated. Exam Tip: If any EA exam question describes TCJA provisions as "temporary," "expiring," or "sunsetting after 2025" — that is an incorrect statement as of the 2026–2027 exam cycle. --- ## Tax Brackets — Now Permanent The seven-bracket structure created by TCJA is permanent: | Rate | Applies To (Single, 2025) | |------|--------------------------| | 10% | Up to $11,925 | | 12% | $11,926 – $48,475 | | 22%…