OBBBA Tax Provision Summary Chart 2025 July 16, 2025 | Page 13

INDIVIDUAL( cont.)

CHANGE PREVIOUS LAW OBBBA CHANGE IMPACT ON YOU / YOUR BUSINESS
Wagering Losses
Deductible to extent of gains( if itemizing deductions)
Deduction limited to 90 % of losses, only to extent of gains( if itemizing deductions)
Slightly less favorable for gamblers.
Inclusion of Postsecondary Credentialing Expenses in 529 Accounts
529 accounts were limited to higher education and K-12 tuition.
Now include expenses for recognized postsecondary credential programs, including fees, testing, and continuing education.
Individuals can use 529 funds taxfree for a broader range of education expenses, including credentialing and continuing education, increasing flexibility for career advancement and retraining.
Expansion of 529 Account Qualified Expenses
529 accounts could be used for tuition( up to $ 10,000 / year) at K-12 schools.
Expanded to include more K-12 expenses( curriculum, tutoring, testing, therapies), and the limit is increased to $ 20,000 / year.
Individuals( parents / beneficiaries) can use 529 funds for a wider array of K-12 educational expenses, with a higher annual cap, enhancing taxadvantaged education savings.
Tax Credit for Contributions to Scholarship Granting Organizations
No federal credit for contributions to K-12 scholarship organizations.
New $ 1,700 federal credit for individual contributions to state-approved scholarship granting organizations for K-12 students.
Incentivizes charitable giving to education.

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