On July 4, 2025, Congress passed a major tax and spending law informally known as the One Big Beautiful Bill (OBBB). This legislation introduces wide-ranging changes that could impact your personal finances, family budget, or business operations, effective with the 2025 tax year.
At J.A. Green Accounting, our goal is to help you understand what’s changing, what stays the same, and what steps you may want to take before year-end.
Key Tax Changes for Individuals & Families
1. Income tax rates stay the same.
The individual tax brackets established in the 2017 Tax Cuts and Jobs Act (TCJA) have been made permanent. That means the current rates, ranging from 10% to 37%, are here to stay.
2. Higher SALT deduction cap (temporarily).
From 2025 through 2029, you may deduct up to:
- $40,000 if married filing jointly
- $20,000 if single or married filing separately
The cap returns to $10,000 in 2030 unless extended.
3. New deductions for 2025–2028:
- Tips: A new deduction for reported tip income
- Overtime pay: Up to $25,000 for joint filers, $12,500 for individuals
- Auto loan interest: Certain interest payments may be deductible again
4. Expanded Child Tax Credit.
Families may see an additional $200 per qualifying child on their tax return.
5. “Trump Accounts” for children.
Children born between 2025 and 2028 are eligible for a new, federally seeded savings account, which will start with a $1,000 government contribution. These accounts are designed to help build long-term savings. Rules are still being finalized.
For Business Owners
1. 100% bonus depreciation restored.
If you run a business, you can once again fully deduct the cost of qualifying equipment, software, and some building purchases in the year they’re placed in service.
2. Energy credits are being reduced.
Some clean energy incentives, such as solar and wind credits, are being phased out or scaled back. If you’re considering energy-efficient upgrades, timing may be important.
What Should You Do Now?
- Employees & families: Ask about how the new deductions could reduce your taxable income in 2025.
- Parents: Keep an eye on developments around the Trump Account program.
- Business owners: Review capital purchase plans and depreciation strategies to ensure optimal financial management.
- Everyone: Schedule a planning session before the end of the year to make the most of these changes.
Bottom Line
The One Big Beautiful Bill brings a wide range of updates that could affect your taxes starting next year. Whether you’re managing a household, planning for retirement, or running a business, it’s important to know what’s changing — and how to prepare.
At J.A. Green Accounting, we’re here to help you make sense of it all and plan with confidence.
