{"id":193,"date":"2025-07-16T14:59:46","date_gmt":"2025-07-16T14:59:46","guid":{"rendered":"https:\/\/www.westaxinc.com\/blog\/?p=193"},"modified":"2025-07-16T15:01:54","modified_gmt":"2025-07-16T15:01:54","slug":"the-one-big-beautiful-bill-act-what-you-need-to-know-about-the-latest-tax-law-changes-obbba","status":"publish","type":"post","link":"https:\/\/www.westaxinc.com\/blog\/2025\/07\/16\/the-one-big-beautiful-bill-act-what-you-need-to-know-about-the-latest-tax-law-changes-obbba\/","title":{"rendered":"The One Big Beautiful Bill Act: What You Need to Know About the Latest Tax Law Changes OBBBA"},"content":{"rendered":"\n<p>On July 4, 2025, President Trump signed the <strong>One Big Beautiful Bill Act (OBBBA)<\/strong> into law, bringing a wave of significant changes to federal tax legislation. This comprehensive package impacts individuals, businesses, and even international taxpayers.<\/p>\n\n\n\n<p>We&#8217;re breaking down the key provisions to help you understand how these updates might affect your tax planning.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Key Individual Tax Provisions<\/h3>\n\n\n\n<p>Many of the <strong>Tax Cuts and Jobs Act (TCJA)<\/strong> rates and provisions are now permanent, offering more stability for taxpayers:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Permanent Lower Tax Rates and Brackets:<\/strong> The tax rates from 2017 are now permanent, with an inflation adjustment for certain brackets in 2025.<\/li>\n\n\n\n<li><strong>Permanent Standard Deduction:<\/strong> The nearly doubled standard deduction amounts are now set permanently. For 2025, these are:\n<ul class=\"wp-block-list\">\n<li>Single &amp; MFS: $15,750<\/li>\n\n\n\n<li>Head of Household: $23,625<\/li>\n\n\n\n<li>Married Filing Jointly: $31,500<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Increased Child Tax Credit:<\/strong> The nonrefundable Child Tax Credit rises to $2,200 per child starting in 2025 and will be indexed for inflation.<\/li>\n\n\n\n<li><strong>Boosted Estate and Gift Tax Exemption:<\/strong> This exemption is permanently increased to $15 million per individual ($30 million for married couples) in 2026, indexed for inflation.<\/li>\n\n\n\n<li><strong>SALT Deduction Cap Increase:<\/strong> The state and local tax (SALT) deduction cap goes up to $40,000 per household, with a phase-out for higher earners. This will revert to $10,000 in 2030.<\/li>\n\n\n\n<li><strong>New Charitable Deduction for Non-Itemizers:<\/strong> Starting in 2026, you can deduct charitable contributions above-the-line ($1,000 for single, $2,000 for joint filers).<\/li>\n\n\n\n<li><strong>Temporary Deductions:<\/strong> From 2025-2028, new deductions are available for qualified tips, overtime pay (with limitations), and an enhanced $6,000 deduction for seniors (age 65+ with income below certain thresholds). You can also deduct up to $10,000 in interest on loans for U.S.-assembled passenger vehicles.<\/li>\n\n\n\n<li><strong>Permanent Changes to Other Deductions:<\/strong> The moving expense deduction is largely terminated (except for Armed Forces). Limits on home mortgage interest and personal casualty loss deductions (now including state-declared disasters) are made permanent. Several other credits, like the adoption credit and employer-provided childcare credit, are also made permanent.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Important Business Tax Provisions<\/h3>\n\n\n\n<p>Businesses also see significant changes and permanency for key deductions:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Permanent QBI Deduction:<\/strong> The <strong>Qualified Business Income (QBI)<\/strong> deduction remains at 20% and is now permanent.<\/li>\n\n\n\n<li><strong>Restored Bonus Depreciation:<\/strong> 100% expensing for qualified property is back for property placed in service after January 19, 2025.<\/li>\n\n\n\n<li><strong>Increased Section 179 Expensing:<\/strong> The maximum expense for qualifying property rises to $2.5 million, with a phase-out threshold of $4 million (indexed after 2025).<\/li>\n\n\n\n<li><strong>Immediate R&amp;E Expense Deduction:<\/strong> Domestic research and experimental expenses can be immediately deducted in 2025.<\/li>\n\n\n\n<li><strong>Permanent Excess Business Loss Limitation:<\/strong> This limitation is now permanent, with existing loss carryforward rules maintained.<\/li>\n\n\n\n<li><strong>Business Interest Deduction Calculation Change:<\/strong> The interest expense limitation will now be calculated using EBITDA (earnings before interest, taxes, depreciation, and amortization) instead of EBIT.<\/li>\n\n\n\n<li><strong>Changes to International Tax:<\/strong> Beginning in 2026, the deduction percentages for FDII (foreign-derived intangible income) and GILTI (global intangible low-taxed income) are reduced. The BEAT (base-erosion and anti-abuse tax) rate increases from 10% to 10.5%.<\/li>\n\n\n\n<li><strong>Higher Reporting Thresholds:<\/strong> The <strong>Form 1099-K<\/strong> reporting threshold reverts to $20,000 and 200 transactions. The <strong>Form 1099<\/strong> reporting threshold for services increases to $2,000 in 2026.<\/li>\n\n\n\n<li><strong>Renewed Opportunity Zones:<\/strong> These provisions are made permanent with changes, including a narrower definition of &#8220;low-income community,&#8221; effective in 2027.<\/li>\n\n\n\n<li><strong>Clean Energy Credit Terminations:<\/strong> Several clean energy credits from the Inflation Reduction Act are terminated.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>Have questions about how the OBBBA might impact your personal or business tax situation? Don&#8217;t hesitate to reach out for a consultation!<\/strong><\/p>\n\n\n\n<p>Contact us at maurie@westaxinc.com or 941-893-1791 if you need immediate assistance.<\/p>\n\n\n\n<p>#taxes #taxproblems #irs #irsproblems #offerincompromise #lt11 #paymentplan<\/p>\n\n\n\n<p><a href=\"https:\/\/www.westaxinc.com\/consultation\" target=\"_blank\" rel=\"noreferrer noopener\">Consultation<\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/g.page\/r\/CZoNDiZh-UeCEAE\" target=\"_blank\" rel=\"noreferrer noopener\">Google<\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.facebook.com\/WesTaxInc\" target=\"_blank\" rel=\"noreferrer noopener\">Facebook.com<\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.instagram.com\/westaxinc\" target=\"_blank\" rel=\"noreferrer noopener\">Instagram<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>On July 4, 2025, President Trump signed the One Big Beautiful Bill Act (OBBBA) into law, bringing a wave of significant changes to federal tax legislation. This comprehensive package impacts individuals, businesses, and even international taxpayers. We&#8217;re breaking down the key provisions to help you understand how these updates might affect your tax planning. Key [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":195,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[4],"tags":[],"class_list":{"0":"post-193","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-tax-savings-planning","8":"entry"},"_links":{"self":[{"href":"https:\/\/www.westaxinc.com\/blog\/wp-json\/wp\/v2\/posts\/193","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.westaxinc.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.westaxinc.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.westaxinc.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.westaxinc.com\/blog\/wp-json\/wp\/v2\/comments?post=193"}],"version-history":[{"count":2,"href":"https:\/\/www.westaxinc.com\/blog\/wp-json\/wp\/v2\/posts\/193\/revisions"}],"predecessor-version":[{"id":198,"href":"https:\/\/www.westaxinc.com\/blog\/wp-json\/wp\/v2\/posts\/193\/revisions\/198"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.westaxinc.com\/blog\/wp-json\/wp\/v2\/media\/195"}],"wp:attachment":[{"href":"https:\/\/www.westaxinc.com\/blog\/wp-json\/wp\/v2\/media?parent=193"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.westaxinc.com\/blog\/wp-json\/wp\/v2\/categories?post=193"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.westaxinc.com\/blog\/wp-json\/wp\/v2\/tags?post=193"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}