Below is a summary of what we reviewed and will be updating in Voyant as a result of the latest US legislation commonly referred to as the "Big Beautiful Bill". Expect these changes to be live in the software prior to the changes becoming law.
PHASE 1
1. Gift and Estate Tax Exemption
- The federal exemption is increasing from $13.99 M to $15 M per taxpayer, indexed to inflation.
- Connecticut’s exemption will continue to mirror the federal amount.
2. Standard Deduction
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The enhanced standard deduction will increase beginning in 2025:
- $31,500 for joint filers (up from $30,000)
- $15,750 for single filers (up from $15,000)
3. Other Items Reviewed
- Child Tax Credit – Not currently modeled, but it can be represented using existing tax credit functionality.
- Senior Enhanced Standard Deduction – For 2025–2028, taxpayers age 65+ may claim an additional $6,000 deduction per person, subject to income limits (can be reflected via tax credits and deductions).
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SALT Deduction – Still available to model year-by-year using the deductions functionality.