The recently passed federal tax bill dubbed the “One Big Beautiful Bill” introduced legislation you should know about. Many provisions from the 2017 Tax Cuts and Jobs Act (TCJA), previously set to expire after 2025, have now been made permanent or expanded. With these changes on the horizon, we’ve prepared a webinar outlining what’s new for taxpayers and how it could impact your tax situation, retirement contributions, and investment planning. Watch our webinar on our website for a detailed overview or reach out to discuss how these changes may affect your situation. We’ve summarized some of the changes below and go into a more detail on a few topics in the webinar. In other news, starting September 30, 2025, the U.S. Treasury Department (including the IRS and Social Security Administration) will stop issuing paper checks for most federal payments, such as tax refunds and social security payments. They also intend to stop accepting paper checks for taxes and other payments. This change is part of an Executive Order aimed at modernizing payment systems, increasing efficiency, reducing costs, and enhancing security.
Changes to Businesses • 100% Bonus Depreciation Made Permanent – 100% bonus depreciation restored for qualifying business assets placed in service after Jan. 19, 2025. • Qualified Business Income Deduction (QBID) – Made permanent, rate stays at 20%; higher phase-in thresholds ($75,000 single / $175,000 joint). • R&D Credit – Domestic research expenses can be fully and immediately expensed as opposed to amortized. • Qualified Small Business Stock (QSBS) – Asset cap raised to $75M; maximum tax-exempt gain increased to $15M; tiered exemptions (50% after 3 years, 75% after 4, 100% after 5).
Changes to Income Tax, Deductions, and Credits • Lower Income Tax Rates Made Permanent – Brackets didn’t change with bottom rate of 10% and top rate remains 37%; brackets indexed for inflation. • Higher Standard Deduction – $15,750 single / $31,500 joint in 2025; indexed annually. • Expanded Child Tax Credit – $2,200 per child ($1,700 refundable in 2025); phases out at $200,000 single / $400,000 joint. • New Car Loan Interest Deduction – Up to $10,000 (2025–2028) for new U.S.-assembled vehicles; phases out above $100,000 single / $200,000 joint and decreases by $200 for every $1,000 over the threshold. • Temporary Tax Break on Tip Income – Up to $25,000 deduction (2025–2028) for eligible workers below income limits. • SALT Deduction Cap Increased – Cap raised to $40,000 in 2025; phases out above $500,000 income.
Wealth Transfer, Investments, and Retirees • Senior Bonus Deduction – $6,000 single / $12,000 joint (2025–2028); phases out above $75,000 single / $150,000 joint. • Estate & Gift Tax Exemption – Increased to $15M per person; avoids 2026 rollback. • Capital Gains Brackets Indexed – Higher income limits for the 0% and 15% rates.
Other Noteworthy Changes • Alternative Minimum Tax Relief – Higher exemptions ($500,000 single / $1M joint); faster phase-out. • Medicaid Changes – $1 trillion in cuts over 10 years; work/volunteer requirements; stricter eligibility. • “Trump Accounts” – Savings accounts for children born 2025–2028 with federal, parental, and employer contributions. • EV & Clean Energy Credits – Most credits end after 2025, including the $7,500 new EV credit and $4,000 used EV credit.
We look forward to helping you navigate these changes and make the most of the new opportunities in the tax law. If you have any questions, feel free to reach out to your CPA / EA directly.
