The per-person exemption equivalent for estate and gift taxes has been increased to $15 million, and will continue to be indexed. That is an increase of $100,000 or 7.14% from the previous $13.99 million.
For a hypothetical married couple with one child, based on $100,000 of income, we calculate that the combined effect of the increase in the standard deduction and the increased child credit will be a savings of $740.
For a hypothetical married couple over age 65, based on $100,000 of income, but disregarding the untaxed part of social security benefits, we calculate that the combined effect of the increase in the standard deduction and the new "senior deduction" will be a savings of $2,000.
Note that, contrary to many published reports and contrary to the claims of the President, the OBBB made precisely zero changes to the rules governing taxation of social security benefits. Of course, since social security is a big part of the income of any recipient, the new senior deduction will incidentally affect that income, too, but there are no changes to taxation of social security benefits otherwise.
Other resources:
Barnes Dennig on the new Car Loan Interest Deduction
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