If you were watching fireworks this Fourth of July, you might’ve missed another kind of bang… the One Big Beautiful Bill being signed! This is going to have significant effects on your tax return, potentially even as soon as 2025, especially if you’re in one of these categories:
→ Taxpayers Who Take the Standard Deduction: Higher standard deduction amounts are taking effect beginning in the 2025 tax year.
→ Taxpayers Over Age 65: An additional $6,000 deduction for seniors (phased out based on income).
→ Taxpayers in High Tax States: The cap on the deduction for state and local taxes has been raised to $40,000.
→ Business Owners: Many changes to key tax elements, including the QBI deduction, bonus depreciation, R&D expensing, opportunity zones, QSBS, and 1099 reporting thresholds.
→ Taxpayers Who Earn Tips: An up to $25,000 deduction of tip income for qualifying employees in traditionally tipped jobs.
→ Taxpayers Who Earn Overtime: An up to $12,500 deduction of qualifying overtime pay per taxpayer.
It’s more important NOW than ever to stay on top of your finances and understand how changing tax law will impact your personal and business finances
September’s coming up quick, and it can be a big hiring month for businesses that are ramping up to meet their fall + winter demand and refocusing on Q4 goals.