---
title: "One Big Beautiful Bill Act: What Families Need to Know"
description: What to do with an inheritance
image: https://blog.scmadvice.com/hubfs/SCM-BBB-2.jpg
---

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###### by [Scarborough Capital Management](https://blog.scmadvice.com/author/scarborough-capital-management)

on October 15, 2025

###### Categories:

- [Personal Finance](https://blog.scmadvice.com/tag/personal-finance)
- [financial advisor](https://blog.scmadvice.com/tag/financial-advisor)

# One Big Beautiful Bill Act: What Families Need to Know

*PART 2 of our 3-Part Series Breaking Down the New Tax Law Changes*

The [One Big Beautiful Bill Act](https://www.congress.gov/bill/119th-congress/house-bill/1/text) introduces a wide range of tax changes aimed at helping Americans across different life stages—from early-career workers to families and those approaching retirement. Whether you're earning tips, raising kids, or planning your estate, the bill includes new deductions, expanded credits, and planning opportunities designed to support your financial goals. The following sections break down key provisions to help you understand what’s changing and how you can prepare.

 

Part 2: What Families Need to Know

*New Child Credits, Education Incentives, and Dependent Care Support*

If you’re raising children or planning for education, this part of the bill offers expanded tax credits, savings options, and benefits starting in 2025 and 2026.

1. Child Tax Credit

- Increases from $2,000 to $2,200 per child in 2025

- Indexed to inflation going forward

2. American Family Account

- Available for children born 2025–2028

- Government contributes $1,000 one-time

- Parents may contribute up to $5,000 per year

- No withdrawals before age 18

3. Dependent Care Flexible Spending Accounts

- Annual contribution limit rises from $5,000 to $7,500 in 2026

- Up to 50% of qualified expenses covered (up from 35%).

4. 529 Plans Expanded

- Now cover non-tuition K–12 expenses

- Tuition-related withdrawal cap doubles from $10,000 to $20,000 in 2026

 

What Should Families Do Now?

- Review savings and tax strategies

- Talk to a financial advisor at Scarborough Capital Management

- Plan if expecting a child in 2025–2028.

 

 

Read Part 3 → In Part 3, you’ll learn about new tax changes that affect older adults, retirees, and individuals focused on estate planning.

 

![](https://blog.scmadvice.com/hs-fs/hubfs/image-png-1.png?width=898&height=954&name=image-png-1.png)

 

*Securities offered through Independent Financial Group, LLC (IFG), a registered broker-dealer. Member FINRA/SIPC. Advisory services offered through Scarborough Capital Management, a federally registered investment Adviser under the Investment Advisers Act of 1940. Registration as an investment adviser does not imply a certain level of skill or training. IFG and Scarborough Capital Management are unaffiliated entities. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The information provided here is general in nature and should not be considered investment, tax, or financial advice. Investing in securities involves certain risks which can include the loss of principal invested. Investors should carefully consider all risks involved before investing. You should consult with a licensed professional for advice concerning your specific situation.*

 

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