2025 Tax Law Alert: How the One Big Beautiful Bill Act Could Transform Your Tax Planning for 2025 and Beyond
- Katherine McNamara
- Aug 4, 2025
- 3 min read
Why This Matters Now for Tax Planning
On July 4, 2025, President Trump signed the One Big Beautiful Bill Act (OBBBA)—a sweeping budget-reconciliation package stuffed with headline-grabbing tax updates for individuals, small-business owners, and multinational companies alike.
If you pay taxes (spoiler: you do), these provisions could change how much you owe—or save—starting as early as this filing season. Below, we break down the highlights, sprinkle in some plain-English context, and flag the planning moves you may want to tackle today.
Pro Tip: The bill is brand-new, and IRS guidance will follow. Schedule a chat with our tax team now so you’re ready when the details crystalize.
Headline Changes for Individuals & Tax Planning for 2025 Tips
1. Permanent, Lower Tax Brackets
The temporary Tax Cuts and Jobs Act (TCJA) brackets get cemented into law. Plus, there’s an extra inflation boost to widen the 12 % and 22 % brackets—translation: more income taxed at friendlier rates.
2. Super-Sized Standard Deduction Lives On
Single / MFS: $15,750
Head of Household: $23,625
Married Filing Jointly: $31,500
Indexing keeps these numbers climbing with inflation.
3. Child Tax Credit Rises to $2,200
More help for parents—and it’s indexed, so expect gradual upticks each year.
4. Estate & Gift Exemption Skyrockets
Dreaming of generational wealth? The unified exemption jumps to $15 million per person (that’s $30 million for married couples) in 2026, with annual inflation bumps.
5. SALT Cap Boost—But Only for a While
The state-and-local-tax deduction cap jumps to $40,000 (phasing out after $500 k MAGI) through 2029 before snapping back to $10k in 2030. Tax planning for 2025 tip: Plan your property-tax prepayments accordingly.
6. Fresh Above-the-Line Deductions
Charitable giving for non-itemizers (starts 2026).
No-tax tips & overtime (2025-2028; industry and income limits apply).
Senior saver bonus: extra $6k deduction for taxpayers 65+ with AGI under $75k ($150K for joint filers).
Car-loan interest on U.S.-assembled vehicles (up to $10k, 2025-2028, subject to income phaseouts).
7. Other Deductions and Credits
Several other deductions and credits, including the adoption credit, employer-provided childcare credit, paid family and medical leave credit, and education-related benefits are made permanent.
Some Inflation Reduction Act incentives disappear—tax planning 2025 tip: check project timelines to lock in credits while they last.
Key Wins (and Pitfalls) for Businesses & Tax Planning for 2025 Tips
1. QBI Deduction Made Permanent
The beloved 20% qualified business income deduction sticks around—huge win for pass-through entities.
2. 100% Bonus Depreciation Returns
Buy equipment after January 19, 2025? You can expense 100% up-front again. Think big on that machinery upgrade.
3. Bigger Section 179 Limits
Instant-write-off ceiling rises to $2.5 million (phase-out at $4 million). Inflation indexing keeps those limits climbing each year.
4. R&E Costs: U.S. vs. Overseas
Domestic research gets an immediate deduction in 2025; foreign research still spreads over 15 years. Locate your labs wisely!
5. 1099 & 1099-K Thresholds Rise
Less nickel-and-diming:
1099-NEC/MISC threshold jumps to $2,000 in 2026 (indexed after 2027).
1099-K reverts to the $20k / 200-transaction standard.
6. Opportunity Zones Reimagined
The program is now permanent—but the definition of “low-income community” tightens in 2027. Vet your real-estate and venture deals carefully.
7. Select Clean-Energy Credits Sunset
Some Inflation Reduction Act incentives disappear—check project timelines to lock in credits while they last.
Timeline-Based Planning Checklist
Phase | Action Items | Who Should Act | Why It Matters |
Now → Year-End 2025 | • Project your 2025 AGI under new brackets • Front-load charitable gifts before the above-line deduction kicks in • Evaluate equipment purchases for bonus depreciation | Individuals & Businesses | Capture deductions that may shrink or phase-out |
2026–2027 | • Re-visit estate plans (new $15 m exemption) • Map multi-year SALT payments • Analyze FDII/GILTI changes | Indviduals & Businesses | Avoid surprise tax spikes |
2028 and Beyond | • Monitor SALT cap reversion in 2030 • Review Opportunity Zone projects • Track inflation adjustments on credits & deductions | Indviduals & Businesses | Keep strategies fresh as rules evolve |
Legal Disclaimer
The information provided in this blog post is for general educational and informational purposes only and does not constitute tax, legal, accounting, or financial advice. Laws and regulations change frequently and can vary by jurisdiction. You should consult a qualified tax professional, attorney, or other licensed advisor who is familiar with your specific circumstances before taking any action based on the content herein.
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