The costs of raising a family are a critical part of the financial picture for young couples and single parents.  Considering that over 100 million households in the United States have a child under 18, it is hardly surprising that the One Big Beautiful Bill Act (OBBBA) contained several provisions that provide tax breaks to parents.  If you have kids or are considering starting a family in the next few years, it’s worth knowing how you can make the most of these rules.

In other words, the changes to the SALT deduction by themselves change how we look at charitable donations.  What’s more, the OBBBA has introduced a couple of fairly minor changes to how charitable donations are deducted.  Importantly, these take effect in 2026 (the change to the SALT deduction takes effect in 2025).  Because they are both calculated on the same schedule of the tax return, and the total is compared with the standard deduction, there is significant interplay between them in a holistic tax plan that optimizes for 2025 and future years.

For most taxpayers, the largest tax obligation they pay at the state/local level is their state income tax.