Senate version of Trump's budget bill includes a new tax break worth up to $2,000—around 90% of filers could take advantage

Congress will soon begin a reconciliation process for the so-called One Big Beautiful Bill Act — President Donald Trump’s sweeping tax reform and spending bill, which Republicans hope to bring to the President’s desk by July 4.

The bill promises continuity for taxpayers by permanently extending the cuts from the 2017 Tax Cuts and Jobs Act as well as a raft of new cuts, including breaks for tipped and overtime income.

Both the House and Senate versions of the bill also include a throwback: an above-the-line deduction on charitable contributions.

The House version allows taxpayers who don’t itemize to deduct $150 ($300 for joint filers) in charitable contributions from their taxable income through 2028 — a tax rule you may remember from a similar provision of the CARES Act, which expired in 2021.

The Senate version is even more generous, with permanent deductions of up to $1,000 for single filers and $2,000 for married couples filing jointly.