What is the "Big Beautiful Bill" and why can it help you pay less taxes?
Learn how the Big Beautiful Bill can help you pay less taxes by increasing the standard deduction.
What is the "Big Beautiful Bill" and why can it help you pay less taxes?
In recent years, the United States government passed a law popularly known as the Big Beautiful Bill (BBB). Its main goal is simple: to let people keep more of their money and pay less taxes, especially the working class.
What did the BBB do?
The BBB increased the amount of money that the IRS decides not to tax you on. This amount is known as the standard deduction.
In other words: before taxing you, the IRS says "of all you earned, this part doesn't count." The BBB made that part bigger.
Practical Example
Imagine you earn $20,000 a year.
- Before (previous years): The IRS ignored less money, so you were taxed on a larger part of your income.
- With the BBB (2025–2026): The IRS ignores more money and taxes you only on what remains.
- Total income: $20,000
- Amount the IRS does not consider: approximately $16,100
- Taxable base: $3,900
The smaller the amount you are taxed on, the less you pay.
Why is it more noticeable in 2025 and 2026?
Because the BBB raised the standard deduction, allowed it to continue increasing with inflation, and mainly benefits people who do not have complicated deductions.
This especially helps workers, families, people with ITIN or SSN, and those who file simple returns.
What you should understand
The BBB is not a trick. It is a law that makes the IRS tax you on less money.
>It does not mean you earn less or that the IRS gives away money. It means more of your income is protected and you pay less taxes legally.
ServiTax LLC is here to help you
The BBB represents an opportunity to better understand your taxes, plan ahead, and take advantage of benefits that already exist in the law.
Informing yourself is the best way not to overpay. Contact us at ServiTax LLC Indianapolis for a personalized consultation.
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